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AIG Rage Swells, Center Funneled Money to Murtha Supporters, Sentencing in D.C. Tax Scam

POSTED: 10:09 AM ET, 03/17/2009 by Amanda Zamora

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AIG Rage Swells » A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products as death threats and angry letters flooded e-mail inboxes inside. More on the AIG bonus fallout: Politico: Grassley Tells Execs: Quite or Suicide, Wall Street Journal: Political Heat Sears AIG; New York Times: Obama Seeks to Undo Bonuses; Los Angeles Times: Bonuses Won't Be Easy to Recover. — Washington Post

Research Center's Role Faces Scrutiny » A Pennsylvania defense research center regularly consulted with two "handlers" close to Rep. John P. Murtha (D-Pa.) as it collected nearly $250 million in federal funding through the lawmaker, according to documents obtained by The Washington Post and sources familiar with the funding requests. The center then channeled a significant portion of the funding to companies that were among Murtha's campaign supporters. — Washington Post

Mortgage Fraud Spikes » Mortgage fraud hit record highs in 2008, increasing 26 percent from the previous year even as the industry made fewer home loans and reined in lending standards, according to figures released yesterday. — Financial Times

Niece in D.C. Tax Scam Sentenced » Jayrece Turnbull, who helped her aunt embezzle tens of millions of dollars from the D.C. treasury, was sentenced yesterday to nine years behind bars. The prison term was the longest imposed so far in connection with the fraud, which spanned about two decades and cost the District nearly $50 million before it was uncovered in late 2007. — Washington Post

U.S. Returns Some Funds to Iraq » The United States has returned to the Iraqi government more than $13 million that had been "improperly held" for contingency purposes by the U.S. Army Corps of Engineers following an investigation by the top U.S. investigator for Iraq reconstruction, officials said yesterday. — Washington Post

After the jump...

» Search Archives officials urge caution on declassification policy (CongressDaily)
» Citi Chief's '08 Compensation Was $38.2 Million (NYT)
» GOP eyes Bush v. Gore to save Coleman seat (Politico)
» Pennsylvania's Fumo found guilty in corruption trial (PhiladelphiaInquirer)
» Gov. finds no problems with hiring of Burris' son (ChicagoTribune)
» Ruth Madoff's Dwindling Fortune (Forbes)
» Britain plans to seize control of tax haven (Guardian)

By Amanda Zamora |  March 17, 2009; 10:09 AM ET The Daily Read
Previous: The Blago Book Race | Next: Bonuses Attacked, But What About Bailout?


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