Congressman calling for hearings on AIG Phoenix conference

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U.S. Rep. Elijah Cummings (D-MD) now says he will be calling for Congressional hearings after an ABC15 undercover investigation showed AIG executives holding poolside meetings at a Phoenix resort and dining at an upscale restaurant.

"A lot of this is about trust, and when you breach the American people’s trust there’s a problem," Cummings said. "It's not just about AIG. It's bigger than that. We've got to send a message to these folks that they're not going to screw us."

Cummings is demanding answers about AIG's Asset Management Conference held at the Pointe Hilton Squaw Peak Resort in Phoenix and calling for the resignation of AIG CEO Edward Liddy.

Cummings said he will be meeting with Rep. Harry Waxman (D-CA) as early as Thursday to discuss hearings.

 Congressman Elijah Cummings discusses AIG conference

The conference held last week cost AIG approximately $343,000, but an AIG spokesperson said they expect sponsors to reimburse the company for about 90 percent of those costs.

"It was not an executive retreat," Liddy said on CNN's Larry King Live Tuesday night, acknowledging "we thought there was a good chance it would be received poorly."

Nearly 150 independent financial planners attended the conference, as did several AIG executives including Larry Roth, President & CEO, AIG Advisor Group; Art Tambaro, President & CEO, Royal Alliance Associates; Mark Schlafly, President & CEO, FSC Securities; Gary Bender, Senior Vice President, Investment Advisory Services; Bruce Levitus, Senior Vice President, Investment Advisory Services; and Stuart Rogers, Senior Vice President.

Learn more about the out-of-town executives who attended Phoenix conference

Cummings told ABC15 he spoke to Liddy and was briefed on Liddy's interview on CNN, but was not satisfied with what he heard.

According to Cummings, Liddy told him that there were no company executives attending the Phoenix conference.

"I mean, that's enough by itself to send me berserk," Cummings said.

 Arizona Director of Americans for Prosperity Tom Jenney speaks out

AIG made significant efforts to keep a low profile at the conference, instructing the hotel not to post any signs with AIG's logo.

"Clearly they're trying to hide things," said Tom Jenney, Arizona director of Americans for Prosperity. "What the people at AIG need to realize is that they are now government employees and we taxpayers do not like to see our government employees going on extravagant junkets."

Click here to view our undercover investigation.

AIG Statement 11/11/08

Edward M. Liddy, Chairman and Chief Executive Officer of American International Group, has issued the following statement:

"Recent news reports have grossly mischaracterized an American International Group seminar for 150 independent financial planners held in Phoenix last week.

The financial planners are not AIG employees. In addition, the cost to AIG for this event was minimal. More than 90 percent of the costs were paid either by sponsors or by the independent financial planners themselves.

It is essential for AIG to conduct seminars of this kind to keep independent financial planners abreast of investment products and services including those offered by AIG. The financial planners are responsible for generating almost $200 million in revenue this year for AIG as of September 30th.

On October 10, I issued a directive to all AIG employees and subsidiaries to reduce expenses and conserve cash, including cancelling all nonessential conferences or meetings, unnecessary travel and excessive overhead. Since then, we have canceled more than 160 events. We conducted a top-to-bottom review of all expenses of the Phoenix meeting in advance and found that it was consistent with my October 10th directive. This conference was approved because it provides the kind of communication we must conduct with the people who sell our products if we are to be successful and repay the U.S. taxpayer."

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.