Former AIG executive Joseph Cassano, who ran the company’s financial products division, is facing a federal investigation into whether he “misled auditors and investors” about the mortgage company’s finances. AIG terminated Cassano’s contract the day before the company went before a congressional panel in October. At the hearing, legislators pointed to the activities of Cassano, who made $280 million during his eight years at AIG, as a major factor in the company’s collapse. (Washington Post)
Rep. William Jefferson (D-LA) filed yesterday for the 4th Court of Appeals to drop most of the criminal charges against him, a motion, which, if granted would overturn an earlier decision by a subset of the court’s judges. Jefferson is on trial for corruption related to Nigerian business deals. His case rests on his broad interpretation of the “speech or debate” clause in the Constitution, which bars members of congress from being prosecuted for transgressions committed in connection with their legislative duties. (Times Picayune)
Former defense contractor Mitchell Wade, who pleaded guilty in 2006 to bribing former California GOP congressman Randy “Duke” Cunningham, is asking for a lighter sentence in return for his cooperation with federal corruption investigations, according to papers filed Wednesday by his lawyers. As it stands currently, Wade faces a minimum of nine years in prison; he has asked for “a year of home detention, a fine of $250,000, five years probation and substantial community service.” Wade has provided information for probes of government employees, private contractors and five members of Congress in addition to Cunningham.
House Speaker Nancy Pelosi (D-CA) said the ethics committee investigation of New York Democratic Rep. Charles Rangel, who is accused of not reporting income on a Caribbean home and receiving a rent break on New York apartments, will finish in January. The statement was an effort by Democrats to ensure that the probe of Rangel, who chairs the House Ways and Means committee, does not hang over the party into the new session. (Politico)
A federal appeals court said Wednesday that prosecutors could use evidence showing that former Alaska state Rep. Bruce Weyhrauch had attempted to get a job at the defunct oil company VECO, a decision that will allow the federal corruption trial against him to proceed. Weyhrauch, a Republican, was indicted in May 2007 as part of a wide-ranging probe of Alaska politics. He is accused of aiding efforts to pass legislation supported by VECO — which was also a main player in the trial of longtime Alaska Sen. Ted Stevens — while seeking employment from the firm in his private life as a lawyer. (Anchorage Daily News)