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The Jewish Voice
FEBRUARY 17, 2017
Greenberg Demands Apology from AG in AIG Civil-Fraud Allegations Case By: Brent Scher
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ormer AIG chief Hank Greenberg agreed to pay a $9 million settlement to New York on Friday, bringing his nearly 12-year legal battle with the state attorney's general offic to a far from amicable conclusion.
Boies said that Schneiderman's case "had totally collapsed at trial," which is why it "agreed to dismiss all of its claims for a new settlement of $9 million." The case, which was controversially launched by then-attorney general Eliot Spitzer in 2005, initially sought $6 billion in damages from Greenberg, alleging nine counts of fin ncial fraud. By the time Greenberg took the stand last September the state was down to seeking
$50 million and alleging just two counts of fraud. The way that the settlement was announced on Friday illustrates how much bad blood remains between the sides following mediation. Attorney General Eric Schneiderman treated the $9 million settlement as a victory, blindsiding Greenberg's legal team with a statement claiming that Greenberg "admitted his role" in fraudulent transactions, a claim that Greenberg's lawyer says is false. "Today's agreement settles the indisputable fact that Mr. Greenberg has denied for twelve years: that Mr. Greenberg orchestrated two transactions that fundamentally misrepresented AIG's fin nces," said Schneiderman in a statement. "After over a decade of delays, defle tions, and denials by Mr. Greenberg, we are pleased that Mr. Greenberg has final y admitted to his role in these fraudulent transactions and will personally pay
Former AIG chief Hank Greenberg agreed to pay a $9 million settlement to New York on Friday, bringing his nearly 12-year legal battle with the state attorney's general office to a far from amicable conclusion.
$9 million to the State of New York." Greenberg's lawyer immediately called Schneiderman's statement "false and misleading," pointing out that Greenberg's statement in the settlement makes no mention of any transaction being fraudulent.
any reference to any accounting being fraudulent, let alone that Mr. Greenberg was aware of any fraud." Boies said that Schneiderman's case "had totally collapsed at trial," which is why it "agreed to dismiss all of its claims for a new settlement of $9 million." He also pointed out that the mediator failed to grant Schneiderman his other demands in the case, such as a court-ordered ban on Greenberg serving on the board of directors for any public company in the future. Greenberg also issued a statement after Schneiderman's, making the argument that he has been calling for mediated settlement talks for years but that it was only agreed to after the court trial revealed the "obvious weakness of the attorney general's case." "I want to reiterate and reaffi m that I did nothing wrong while at AIG," said Greenberg.
"The press release issued by the offic of the New York Attorney General today concerning their dismissal of their 12-yearold lawsuit against Maurice Greenberg is false and misleading," said lawyer David Boies. "Nowhere in the agreed statement by Mr. Greenberg is there See Greenberg Challenges 12-Year , page 36
What Will NY’s Electric Grid Look Like in the Next Decade? By Ilana Siyance
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he state of New York has the seventh-highest residential prices for electricity in the United States, paying 18.28 cents per kilowatt-hour, according to a study in October by the United States Energy Information Administration. Con Ed’s rates for New York City are even higher at 24.736 cents per kilowatt-hour. NYC pays the second highest rates in the country, trailing only behind Hawaii’s 27.54 cents. Thecheapest electricity in the Nation is offered in Louisiana at 9.33 cents, Geor-
In 2015, 64 plants that use natural gas provided nearly 50% of the electricity in NYS, and four nuclear plants produced roughly 30% of the electricity.
gia at 11.07 cents, and California at 13.94 cents. This has prompted the attention of a recent NY Times article deliberating whether NY is getting electricity in the most efficient manner, and what can be done to improve the system. As per Richard L. Kauffman, who is leading the state’s plans to reimagine the power grid, “We have a system which is energy-inefficie t because it was never designed to be effici t”. A big bulk of the system is idle, and exists only as a backup for the hottest days of the year, when lines reach their physical capacity. The system’s backbone is 11,124 miles of high-voltage lines running overhead and underground that carry electricity to local utilities. Transmission lines can overheat or shut down if too much power fl ws through them. Th y are also not immune to the elements. More than 80% of the lines date back to 1980 or earlier.
percent to 2.4 percent rate hike in the next three years. A typical city resident who uses 300 kilowatt-hours per month will pay approximately $80.30, up from $78.52. In 2015, 64 plants that use natural gas provided nearly 50% of the electricity in NYS, and four nuclear plants produced roughly 30% of the electricity. The e are also 180 hydroelectric facilities, which accounted for 19% of the state’s electricity, and which remain vital for clean power production. Governor Cuomo has set a lofty goal to produce half of The state of New York has the seventh-highest residential prices the state’s electricity from renewfor electricity in the United States, paying 18.28 cents per able sources here or imported kilowatt-hour, according to a study in October by the United from Canada and New England, States Energy Information Administration by 2030. Energy use is projected The New York Independent cost roughly $25 billion. Con Ed, to fl tten or even decrease over System Operator (Nyiso), a non- the State’s largest utility, requested the next ten years, due to more profit that runs the state’s grid and a rate increase to off et its $1.3 effici t appliances and better power markets, estimates that billion project to modernize and insulated buildings. Still the goal nearly 5,000 miles of transmission repair its distribution networks. seems out of reach, as less than lines will need to be replaced over After a nearly five-year freeze, this See What Will NY’s Electric, page 38 the next 30 years, which would January the State approved a 2.3
Pace University to Spend $190M to Upgrade its Manhattan Campus By: Natasha Spyer
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ace University has plans in store for a $190 million dollar expansion and renovation effort of its lower Manhattan campus. Construction is expected to last for about a year. Pace will be in good company, as the New School, Columbia, and New York University make way for their own renovations. The fi st leg of Pace’s project will include a $45 million dollar project that will begin this summer and will likely be completed in the autumn of 2018. The effort will take place at 1 Pace Plaza and 41 Park Row and will include a new student center, an art gallery, and student commons. At 41 Park Row, Pace University will restore the original entrance to the building which was formerly located on Spruce Street, that art gallery
will be on the fi st fl or and the student commons is set to be on the second fl or. University president Stephen Friedman said in a statement regarding the renovations. “Pace University is proud to be a longtime anchor of the Lower Manhattan community…channeling our consistent growth and the transformation of the dynamic lower Manhattan community, we are advancing an exciting plan that invests in our future by re-creating our campus to refle t the aspirations of our students.” The construction project, which is scheduled to be carried out in three separate phases, is named “Opportunitas: Embracing the Future.” It is part of the university’s 20152016 strategic plan. The principle reason for the project is a steady increase is the general expansion of Pace’s enrollment,
discussed the concept for the renewed campus. “Our goal was to create a master plan that matches the clarity and aspirations of Opportunitas: Embracing the Future… the plan responds to the needs of today’s learners, fosters an increased sense of community, and encourages engagement. We focused on student-centric solutions to activate, reveal and connect spaces and places at Pace.” According to the equality of opportunity project, Pace is ranked as the most effective higher education institution in Pace University has plans in store for a $190 million dollar expansion and renovation effort of its lower Manhattan campus. New York and second in the nation in facilitating the rise of Construction is expected to last for about a year. its student body from the botthe growth of its faculty and its student life. “Opportunitas: tom fi h of income distribuadded programs in business, Embracing the Future” will tion into the top 20 percent of earners in their early thirties. the performing arts, the arts seek to bridge the gap. Sylvia Smith, Senior Partner The new campus will add a viand sciences, technology and care. The size and construction of FXFOWLE, the construction brantly classy backdrop to the of the campus has not kept up company that will begin the re- institution’s successful ongoing to speed with the burgeoning modeling effort in the summer mission.
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