Kucinich Secures Promise from AIG CEO to Review $96 Million in Claims by Ohio Police, Fire, Teacher and Public Employee Pension Funds
WASHINGTON - Congressman Dennis Kucinich (D-OH) today questioned AIG CEO Edward Liddy about the status of a class action lawsuit against AIG involving the Ohio Public Employees Retirement System, State Teachers Retirement System, and the Ohio Police and Fire Pension Fund, which lost $96 million to AIG Fraud.
"AIG cheated police, firemen, teachers and public employees in Ohio out of $96 million. That may not seem like a lot of money to a company that is used to dealing in trillions. But you cheated people who save lives and teach our children, and I want to know what you are going to do about it," Kucinich demanded.
The lawsuit, originally filed in 2004, seeks compensation for fraudulent actions committed as early as 1999 such as ‘bid rigging,' accounting fraud and market manipulation of AIG stock price. The lawsuit asserts that Ohio pensions funds, which includes Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio, and the Ohio Police and Fire Pension Fund, have lost a total of $96 million dollars as a result of AIG's fraud.
AIG has executed counterparty payouts in excess of $80 billion since receiving federal government assistance. Many of these counterparties are foreign banks and U.S. banks that also received bailout funds. Yet the efforts of the Ohio Pensions Funds to be made whole have been scorned by AIG since Mr. Liddy became CEO on September 18, 2008.
Kucinich pointed out "corporations in England, Germany, France and South America are getting dollar for dollar for their losses. Yet when it comes to police, firemen, teachers and other public figures it is ZERO, zero for the $96 million dollars they lost."
Kucinich continued in his questioning of CEO Liddy, "Can you name one thing that you have done to get this matter resolved with respect to AIG defrauding police, firemen, teachers and other public employees in the state of Ohio?"
In response to Kucinich's insistence, Mr. Liddy agreed to have his legal counsel meet with Congressman Kucinich next Tuesday to discuss how AIG would resolve the lawsuit.