Flashback to a time (April 2009) when we believed prosecution was imminent for AIG's Joe Cassano. We have since learned that Eric Holder is a Wall Street shill and that Geithner made a secret visit to NY AG Andrew Cuomo asking him to back off financial prosecutions for the sake of financial stability.
Take a trip down prosecutorial memory lane...
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The vultures have begun their death spiral toward the soulless corpse of Joseph J. Cassano. Ask Joe if payback's a bitch. Last seen biking through the streets of Buenos Aires, Jose might be looking for a new home, preferably in a locale without one of those pesky extradition treaties.
For AIG villain and arrogant bastard Joe "not to be flippant, but I can't foresee any scenario under which AIG will owe even $1 dollar for CDS obligations" Cassano, the walls are getting closer and the air is being sucked out of the room. What is it about vultures? They tend to eat the juicy parts first.
ABC News is reporting somewhat vaguely that federal prosecutors and others including the FBI are "closing in on the AIG executive whose suspect investments cost the insurance giant hundreds of billions of dollars. The government is investigating whether or not 54-year old Brooklyn-native Joseph Cassano committed criminal fraud in virtually bankrupting the company."
"Closing in" is intentionally mushy and could mean anything, but at a minimum it is evidence that investigators are humping the Cassano trail. There is more color from the ABC report:
An ABC News investigation found that Cassano set up some dozens of separate companies, some off-shore, to handle the transactions, effectively keeping them off the books of AIG and out of sight of regulators in the U.S. and the United Kingdom. "This is the other very important issue underneath the AIG scandal," said Blum. "All of these contracts were moved offshore for the express purpose of getting out from under regulation and tax evasion."
Not to be out-maneuvered, the House Oversight committee wants a piece of the action. TPM reported last week that investigators for the committee intend to interview Cassano (like Joe's coming back from London voluntarily) about his role in AIGFP and the destruction of life as we once knew it to be.
Separately, ABC is reporting that other government investigators including federal prosecutors are looking into more general corporate malfeasance among officers of AIG.
The lesson here: Painting a rosy scenario while disguising losses will get you a trip to federal prison.
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