Updated 03/17/2009 05:11 PM
Cuomo: AIG Paid 73 Million-Dollar Bonuses
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State Attorney General Andrew Cuomo says the insurance giant American International Group paid bonuses of at least $1 million to 73 employees.
Cuomo's investigation finds that 11 people who received million-dollar bonuses no longer work for the company. The attorney general subpoenaed information from AIG yesterday, saying he wanted to look into whether the payments constitute fraud under state law.
AIG doled out $165 million in bonuses shortly after receiving federal bailout money. Company representatives said the compensation packages were contractually agreed to last year, well before the firm ran into trouble.
Meanwhile, Senator Charles Schumer warned AIG to return its bonus money, or he says Congress will find a way to recoup it, possibly through a hefty new tax.
Both House and Senate Democrats are said to be crafting separate bills to tax the bonus money by up to 100 percent.
"This is disgraceful, this is unacceptable and it is an offense to millions of hardworking Americans, whose tax dollars are the only reason AIG exists," said Schumer.
AIG has already accepted $170 billion dollars in federal bailout aid and is now about 80 percent owned by taxpayers.