The Department of Justice and the Securities and Exchange Commission are to gather a grand jury to bring a case against the former head of an AIG unit suspected of committing securities fraud, according to Reuters. Joseph Cassano, the former chief executive of AIG Financial Products, has been accused of issuing false statements regarding the company’s mortgage-related derivative contracts and failing to disclose material facts about the contracts to auditors. Though Cassano has of yet been subject only to an official inquiry, the former trader and other AIG execs could soon face an assembled grand jury in Brooklyn, N.Y.
Prosecutors Look to Bring Case Against Former AIG Exec
An AIG trader suspected of making false statements to certain mortgage-based contracts could face a grand jury.
September 14, 2009