Joseph Cassano, a former executive for American International Group Inc. (AIG), is now being investigated by United States prosecutors. Wired PR News.com – As reported by Reuters, Cassano allegedly may have misled investors and auditors with flawed information pertaining to sub prime mortgage losses.
Citing information from a Bloomberg report, the Reuters article states Powerhouse Coopers auditors were questioned about memos previously written regarding the valuing practices of Cassano and fellow executives. AIG is said to be also under investigation for relying on questionable valuations.
Cassano was formerly the head of AIG Financial Products, which has been identified as the source of losses that warranted the $85 billion bailout allocated to the company by the United States government in September. AIG was under scrutiny for their spending practices after being provided bailout funds, including providing Cassano with an independent consulting contract for $1 million a month, following his March retirement.
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