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Congressman calls for hearings after AIG Phoenix conference

Reported by: Josh Bernstein
Email: jbernstein@abc15.com
Last Update: 12/16/2008 8:28 pm
Video Click the play button on the video window to the right to see the story

Congressman Elijah Cummings of Maryland has formally requested a hearing to look into an AIG conference held in November at the Hilton Squaw Peak Resort in Phoenix.

The congressman has filed a four page request with the Chairman of the House Committee on Oversight and Government Reform.

That letter is a direct result of an ABC15 investigation.

In his letter Congressman Cummings writes, "I am deeply troubled by reports of a corporate event in early November at Squaw Peak Hilton in Phoenix, Arizona."

The letter goes on to state AIG, "took deliberate steps to remove its name from signs at the event in an effort to 'maintain a low profile.'"

Back in November, the ABC15 Investigators went undercover at the conference and spotted some of AIG's top brass attending poolside meetings, dining out at McCormick and Schmicks and working out at the spa.

In his request for congressional hearings, Congressman Elijah Cummings states, "These executives reportedly spent the majority of their time on non-business-related activities, and they were reported to fly out days before registration even began."

In a previous statement to ABC15 a company spokesperson claims, "Eighteen participating product sponsor firms are underwriting $320,000 of the total meeting cost of $343,000. The company’s portion of the total meeting costs is under $25,000."

But the Congressman questions this statement and points out in his request for congressional hearings, "At least one of these 'corporate sponsors' is an AIG subsidiary."

The letter also raises issue with AIG's recent retention payments for top level employees and several other corporate events.

A company spokesman says, "AIG has no comment at this time."



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