Sept. 24 (Bloomberg) -- American International Group Inc.’s ex-Chief Executive Officer Maurice “Hank” Greenberg asked a New York judge to dismiss a lawsuit brought in 2005 by former state Attorney General Eliot Spitzer, Greenberg’s attorney said.

Greenberg accused Spitzer of using the case to promote his political career, according to a filing in New York State Supreme Court provided by Greenberg’s attorney, Nicholas Gravante.

“At that time, Spitzer was planning to run for governor of the state of New York, and he has since admitted that his high- profile pursuit of Greenberg achieved its intended objective of enhancing his reputation as he pursued higher office,” Gravante wrote in the filing. “AIG was, at the time, one of the world’s most successful companies and Greenberg was the one of the world’s most successful business leaders.”

Spitzer accused Greenberg and former AIG Chief Financial Officer Howard Smith of using sham reinsurance deals and other transactions to distort the reported financial condition of the company. Greenberg argued in yesterday’s filing that statements he made that are part of the state’s claims against him are either “omissions” or “immaterial.”

AIG, once the world’s largest insurer, ousted Greenberg in March 2005, two months before Spitzer sued him and Smith, alleging they mislead regulators and investors. Spitzer dropped portions of the suit in 2006 that included four allegations tied to his investigation. Yesterday’s filing by Greenberg seeks to dismiss the claims that are still pending without a trial.

Forced Retirement

AIG, based in New York, eventually restated its earnings, lowering them by $3.4 billion, and agreed to pay $1.64 billion to settle claims by Spitzer and other regulators, without admitting or denying wrongdoing. In court papers filed in July 2006, Greenberg argued AIG’s 2005 restatement was unnecessary and designed to force him to retire.

In yesterday’s filing, Greenberg said he relied on professional advisers for transactions that are the basis of claims in Spitzer’s lawsuit. His lawyers argue that there isn’t any evidence that he sought improper transactions or knew they were improper.

“At all times, Greenberg -- who, during relevant periods, ran an enormous global company that operated in 130 countries -- relied on legal counsel, on internal accounting experts, on external auditors, on actuaries and on AIG’s counterparties to structure and account for the millions of transactions AIG entered into each year in an appropriate manner,” Gravante said in court papers.

‘Derailed’ Settlement

Last November, lawyers in the case said they had earlier reached an “oral agreement” for a settlement between Greenberg and New York Attorney General Andrew Cuomo, who inherited the case from Spitzer. They said the company’s collapse in September 2008 “derailed” negotiations.

Alex Detrick, a spokesman for Cuomo, didn’t return a voice- mail message left at his office after regular business hours yesterday.

On Aug. 6, Greenberg, 84, agreed to pay $15 million and Smith consented to paying $1.5 million to resolve a lawsuit brought by the U.S. Securities and Exchange Commission.

A federal judge in New York on Aug. 31 rejected a claim by AIG that a company run by Greenberg breached its duty to the insurer by selling $4.3 billion of AIG stock. U.S. District Court Judge Jed Rakoff in Manhattan said he agreed with a jury’s verdict that Starr International Co., or SICO, didn’t violate a duty to hold the AIG shares after 2005.

Mark Herr, a spokesman for AIG, wasn’t immediately available for comment yesterday.

Spitzer Resigned

Spitzer resigned as governor in March 2008 after he was identified as a client of a high-priced prostitution ring. Prosecutors decided not to pursue charges against him of money laundering and other alleged crimes.

Spitzer’s case against Greenberg is before Justice Charles Ramos. Ramos also presided over a lawsuit that Spitzer filed against former New York Stock Exchange Chairman Richard Grasso over his pay package. Ramos ruled in 2006 that Grasso had to return at least $112.2 million in compensation that he wrongfully received. Ramos’s rulings were later overturned by appeals courts.

The document provided by Gravante yesterday wasn’t immediately available in electronic court records.

The case is New York v. Maurice Greenberg, 401720/2005, New York Supreme Court, New York County (Manhattan).

To contact the reporter on this story: Patricia Hurtado in New York State Supreme Court at pathurtado@bloomberg.net

Last Updated: September 24, 2009 00:01 EDT