Subpoenas issued for AIG employees who got bonuses

Posted by LS - email

The controversy surrounding insurance giant AIG is growing.

New York Attorney General Andrew Cuomo says he's issued subpoenas for the names of AIG employees given millions of dollars in bonuses despite their possible roles in the insurance giant's near-collapse.

He says his office will investigate whether the $165 million in payments are fraudulent because they were promised when the company knew it wouldn't have the money to cover them. "In the last six months, AIG has received substantial sums from the U.S. Treasury. I've asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses," Cuomo said.

Experts say the money may be hard to recover because AIG has already written the checks.