Feds Ready to Impanel Grand Jury for Former Head of AIG's Financial Products Unit
After an 18 month investigation, federal prosecutors are preparing to impanel a grand jury in Brooklyn, N.Y., to consider an indictment of former American International Group Inc. executive Joseph Cassano, according to the Wall Street Journal. WSJ reported that, according to sources familiar with the matter, the Justice Department and the SEC have been investigating whether Cassano, who ran AIG's Financial Products unit, committed securities fraud by allegedly misleading investors about the value of mortgage-related contracts, and by failing to disclose material facts regarding such contracts to AIG's outside auditor.
