Former AIG Finance Exec Put on Leave

Before being named chief administrative officer earlier this year, Michael Castelli served as comptroller from 2000 through 2004.
Stephen TaubApril 19, 2005

American International Group Inc. has shown the door to another former finance executive as an investigation of insurance giant’s accounting continues.

Michael J. Castelli, who was appointed chief administrative officer and a senior vice president in January, was put on leave, according to The New York Times, which cited a company spokesman. AIG offered no further details, and Castelli could not be reached by the paper for comment.

Castelli is cooperating with regulators, according to people briefed on the investigation, reported the Times.

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Before joining the insurer, Castelli was in the insurance industry practice at PricewaterhouseCoopers. He left PwC in 1989 to become assistant vice president and comptroller of AIG’s domestic general insurance operations, where he later took on responsibilities as treasurer and chief financial officer. Castelli was named AIG vice president and deputy comptroller in 1998 and served as comptroller from 2000 through 2004.

When Castelli’s promotion to chief administrative officer was announced in January, then-vice chairman and CFO Howard I. Smith stated in a press release that “Mike Castelli has made significant contributions to AIG during his tenure as comptroller, most recently having an integral role in complying with the complex demands of the new Sarbanes-Oxley reporting requirements.”

Last month, Smith took a leave of absence from AIG, then was fired,
reportedly after invoking his Fifth Amendment rights during questioning by federal investigators.