It doesn't get much harsher than this statement from the SEC, taken from its announcement of the settlement of proceedings against Brightpoint, Inc., AIG and certain individuals related to alleged accounting fraud:

AIG played an indispensable part in the fraudulent transaction by selling Brightpoint a new "insurance" product that AIG had developed and marketed for the specific purpose of helping issuers to report false financial information to the public. (Emphasis added)

According to the SEC, the stated purpose of this product was "income statement smoothing." The SEC further alleged that

the key to achieving the desired accounting result was to create the appearance of "insurance," i.e., that the "insured" (Brightpoint) was paying premiums in return for an assumption of risk by AIG, when, in fact, Brightpoint was merely depositing cash with AIG that AIG refunded to Brightpoint.