New York State regulators have drawn their bead on the head of one Hank Greenberg, the former Chief Executive of American International Group, Inc. Greenberg (and a group of Greenberg-controlled entities) is accused of attempting to "possess control" of AIG without first requesting the Insurance Department's permission. According to an Insurance Department spokesman, the Greenberg group's collective 12 percent ownership of AIG makes that group a "controlling person" under New York insurance law. Apparently "controlling persons" must ask the Superintendent first before they can actually move forward with the whole control thing.

From the looks of Greenberg's SEC filing yesterday, the man that Reuters hails as "the octogenarian businessman who built AIG into the world's largest insurer" is gearing up for one helluva fight. Reuters reports that no individual member of the Greenberg group owns more than 10 percent of AIG shares and that none of the Greenberg group members possess the power to direct AIG's management or policies. But the New York insurance department claims that entities in the group--namely Greenberg himself, Greenberg-controlled vehicle Starr International Co., Greenberg's family foundation C.V. Starr & Co., and former AIG executive Edward Matthews--are acting in concert.

Well, perhaps, but there are some carefully coordinated efforts taking place on New York's side too.  New York Attorney General Andrew Cuomo continues to pursue civil fraud charges that New York Governor Elliot Spitzer brought against Greenberg when Spitzer was attorney general. According to Reuters, AIG's board ousted Greenberg during a 2005 fraud investigation led by Spitzer. And New York Insurance Superintendent Eric Dinallo was a former lead investment protection bureau attorney under Spitzer.

Whether you see Spitzer as the champion of aggressive enforcement or a "controlling person" of the worst kind (i.e., one that doesn't need to seek permission from anyone now that he's governor), he is clearly acting in concert with Cuomo and Dinallo to take Hank Greenberg down. Is this a witch hunt with deep political motives? Is Hank Greenberg getting what he deserves? Is the answer to both questions "yes?"