Business news digest

REGION

Former CEO of AIG reaches settlement agreement

COLUMBUS — Former American International Group Inc. CEO Maurice “Hank” Greenberg and others have agreed to pay $115 million to settle fraud claims in a lawsuit filed on behalf of three Ohio state pension funds and shareholders.

State Attorney General Richard Cordray announced the agreement, the third such settlement from the lawsuit for a total of $284.5 million.

The agreement must be approved by a federal court in New York and the boards of the Ohio Public Employees Retirement System, the State Teachers Retirement System and the Ohio Police & Fire Pension Fund.

Greenberg was forced out of AIG after charges that the company had engaged in deceptive accounting practices surfaced.

NetJets moving to Ohio

COLUMBUS — Private air charter service NetJets Inc. is moving its corporate headquarters from New Jersey to Columbus, the base of its flight operations. A spokeswoman told The Columbus Dispatch that the relocation follows last week’s departure of company chairman and CEO Richard Santulli.

NetJets allows individuals and firms to share ownership of business jets. Santulli introduced the concept and founded NetJets after buying Columbus-based Executive Jets, a traditional charter company, in 1984. He set up the headquarters, with a small number of employees, in Woodbridge, N.J., where he lives.

Regulators shut down bank in Pennsylvania

WASHINGTON — Regulators have shut down Dwelling House Savings and Loan Association, a small bank in Pennsylvania, boosting to 73 the number of federally insured banks that have failed this year.

The Federal Deposit Insurance Corp. was appointed receiver of the failed thrift, located in Pittsburgh, which had $13.4 million in assets and $13.8 million in deposits as of March 31. PNC Bank, a large institution based in Pittsburgh, has agreed to assume all of Dwelling House’s deposits and about $3 million of its assets; the FDIC will retain the rest for eventual sale.

Dwelling House’s lone office in Pittsburgh will reopen Monday as a branch of PNC Bank, the FDIC said Friday.

NATION

Book claims Madoff had affair with investor

NEW YORK — Bernard Madoff’s decades-long fraud might not have been his only secret. A new book says he had a two-decade affair with one of his investors. That’s in a memoir by Sheryl Weinstein titled “Madoff’s Other Secret: Love, Money, Bernie, and Me.” It goes on sale Aug. 25.

A spokesman for book publisher St. Martin’s Press said Friday the relationship between Weinstein and Madoff spanned more than 20 years. Both were married.

Madoff is serving 150 years in prison for defrauding investors. Weinstein says she met him when she was chief financial officer for the charitable women’s organization Hadassah.

From staff and wire reports