Authorities are investigating at least three present and former American International Group Inc. employees in connection with the firm’s derivatives contracts, the Wall Street Journal reported.
Citing people familiar with the matter, the newspaper said authorities at the Department of Justice and the Securities and Exchange Commission are examining the actions of Joseph Cassano, who headed AIG’s London-based financial products group; another London executive, Andrew Forster; and Tom Athan, who is based in Wilton, Conn. None of the individuals has been charged.
Mr. Cassano resigned from AIG last year, but Mr. Forster and Mr. Athan are still employed by the company and are among those who received controversial retention bonuses, according to the paper.
The newspaper said that, according to its sources, the investigators are looking at multiple ways the executives may have misled the company’s auditors and investors about the value of derivatives the firm sold.
Meanwhile, trustees of AIG\'s credit facility trust have been asked to testify before the House of Representatives\' Oversight and Government Reform committee on May 6, according to the committee\'s Web site.
In letters to the trustees, committee chairman Rep. Edolphus Towns, D-N.Y., said they should be prepared to discuss their "roles and responsibilities, efforts taken to perform their duties, and whether they believe the U.S. taxpayer investment in AIG is being adequately protected."
AIG Chairman and Chief Executive Officer Edward Liddy is also scheduled to testify.
