The decades-long relationship between PricewaterhouseCoopers (PWC) and American International Group (AIG) is being scrutinized as regulators allege the accounting firm overlooked problems and issued false audit reports.Advertisement

Florida's insurance regulator has ordered American International Group Inc. to disclose information about financial misrepresentations and fire those responsible.If AIG does not comply, it faces the possibility of being barred from doing business in the state.The Office of Insurance Regulation ordered AIG, and its 43 units operating in Florida, to hand over information on the nature and extent of misrepresentations on the company's financial statements, Reuters reported.

Turns out the Internal Revenue Service (IRS) listens to the radio. At least they do in New York. So when K-Rock DJ Crazy Cabbie, otherwise known as Lee Mroszak, bragged to listeners on the Howard Stern show that he beat the government out of more than $100,000 in taxes, he was busted. The IRS checked and, sure enough, Lee Mroszak owed them money. So much money, that he has been sentenced to 12-months in jail for tax evasion. Or maybe that’s for stupidity.

A major overhaul of the bankruptcy law is prompting more people to file for protection now to avoid going through a more difficult and expensive procedure in the fall.Bankruptcy filings in March jumped nearly 60 percent from February, according to Cardweb.com, which tracks the credit and debit card industries. Attorneys who specialize in bankruptcy law say the increase is directly related to the new law, which takes effect Oct.

The Federal Bureau of Investigation is reviewing accounting practices across the insurance industry to determine whether it may become “the next big one,” in terms of corporate scandals, an FBI assistant director told the New York Times.The comments of Chris Swecker, who oversees the FBI's financial crimes unit, came as agents across the country were instructed to look for accounting irregularities similar to ones ensnaring American International Group, which is being investigated by multiple state and federal authorities."I'm not going to say it is the next crisis, but I will say we

Individuals aren’t the only ones likely to find it more difficult to keep creditors at bay under the new bankruptcy law. That is both good news and bad news for small businesses. The good news: the bankruptcy filing process has been streamlined and small business owners will find it easier to collect on debts incurred by individuals and other businesses that have filed for bankruptcy. The bad news: tougher rules apply and it may be harder to reorganize under Chapter 11.President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act on April 20.

As attorneys for the government and accounting firm Arthur Andersen squared off before the U.S. Supreme Court this week, it is clear that emotions are still running high for those once connected to the venerable Big Five accounting firm.Andersen is appealing it's 2002 conviction for obstruction of justice before the high court.

A series of high-profile security breaches has prompted lawmakers to consider requiring companies to notify consumers if their personal information has been lost, stolen or otherwise released.“The fact of the matter is that your buying habits, your bank accounts, your Social Security number, your driver's license - all of your personal data - today is being collected, collated, distributed, bought, sold - without your knowledge or consent,” said Sen. Dianne Feinstein, D-Calif., in a statement.

If the Bush administration has its way, Congress will take steps this year to end an accounting practice in states that some say is tantamount to money laundering.The accounting trick, used by California for instance, will yield the state $2 billion more in federal Medicaid money than it would otherwise receive, the Washington Post reported.The trick goes something like this: cash-strapped California counties, public universities and government hospitals find $1.9 billion to send to the state capitol, under the guise of a local contribution to Medicaid.