CBS News confirmed Friday night that federal prosecutors have informed attorneys for executives of American International Group Inc. that they are not targets of criminal charges.
The decision to conclude the two-year investigation into AIG executives comes after CBS News chief investigative correspondent Armen Keteyian first reported on April 6 that the Justice Department was likely to drop charges against Cassano.
The investigation focused on whether the insurer's executives deceived investors and its outside auditor about the company's risky investments in credit-default swaps partly tied to mortgages, the newspaper reports. Those investments nearly brought AIG down in 2008.
Investigators focused on Joseph Cassano, the former head of AIG's Financial Products unit who now no longer works for the company.
"The system worked," Cassano's attorneys, F. Joseph Warin and Jim Walden, said in a statement. "Although a 2-year, intense investigation is tough for anyone, the results are wholly appropriate in light of our client's factual innocence."
The conclusion of the Justice Department's investigation doesn't mean AIG is free and clear from government probes. The Securities and Exchange Commission hasn't ruled out the possibility of filing a civil fraud lawsuit against the insurer for securities violations, the newspaper reports.