Maurice Greenberg, former CEO of AIG. (AP Photo/Mark Lennihan)

(Bloomberg) — Former American International Group Inc. Chairman Maurice “Hank” Greenberg lost his bid to toss a decade-old fraud suit by New York’s attorney general, clearing the way for trial unless he appeals to the state’s highest court.

New York Attorney General Eric Schneiderman, who took over the case, claims Greenberg was responsible for sham transactions with General Reinsurance Corp. in 2000 and 2001 that inflated AIG’s loss reserves by $500 million.

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