The pension fund in its papers charged that Bermuda-based C.V. Starr, which historically has been run and owned by AIG executives, received $495.2 million in commissions from AIG for purportedly originating insurance business for AIG from 1999 to 2003. But because AIG has the capacity to produce the Starr business for itself, these transactions amounted to "self-dealing," according to the complaint.

AIG's commission payments to C.V. Starr, the complaint stated, were "completely unnecessary and were simply means of lining the pockets of Starr's owners." AIG is also accused of paying C.V. Starr above-market commissions even though major C.V. Starr experts also worked for AIG.

Currently, C.V. Starr ownership consists of Mr. Greenberg and Mr. Sullivan, AIG Senior Vice Chairman Edmund S.W. Tse and Chief Operating Officer Donald Kanak. C.V. Starr also pays some 80 partners, all A.I.G. executives, dividends and benefits from its undisclosed profits.

In the complaint, Mr. Greenberg is accused of using payout mechanisms of C.V. Starr, as well as those of another smaller company Starr International Co. Inc., which administers incentive plans for AIG officers, to "enslave" and control his lieutenants.

C.V. Starr made annual preferred-stock-dividend allotments. But they only could be cashed out at retirement and, furthermore, executives leaving AIG on "unhappy terms" with Mr. Greenberg were required to forfeit all such compensations, the complaint stated.