Nov 25, 2005 - NEW YORK (Reuters) - New York Attorney General Eliot Spitzer has decided not to pursue criminal charges against former American International Group Chief Executive Maurice "Hank" Greenberg in connection with the insurer's accounting scandal, the Wall Street Journal reported on Friday.

The paper said Spitzer's office will still focus on civil-fraud allegations it filed against Greenberg and the company in May, citing people familiar with the matter.

Spitzer's decision not to follow-through with criminal charges wouldn't leave Greenberg in the clear, the paper said. Federal prosecutors in New York and the U.S. Justice Department are still pursuing criminal probes on the former insurance executive.

Greenberg and former AIG CFO Howard Smith, who were ousted when the investigation first picked up steam, took part in numerous fraudulent business deals that exaggerated the strength of the company's core underwriting business and propped up its stock price, according to Spitzer's lawsuit.

Spitzer backed off possible criminal charges against Greenberg in June after presenting evidence of alleged wrongdoing in the AIG matter to a state grand jury in the spring, the Journal said.

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