AIG Officials Investigated by Congress for $400,000 Spa Retreat Trip

AIG officials are being investigated by Congress for spending more than $440,000 on a retreat, just a week after the company received an $85 billion bailout.

The scandal received national attention after it was reported that the American International Group (NYSE: AIG) officials spent $443,344 on an executive spa retreat at a Southern California resort, just a week after the company faced financial distress. AIG received an $85 billion bailout from the Federal Reserve Board on Sept. 17.

The AIG officials embarked on the weekend spa retreat at the St. Regis Monarch Bay Resort in Southern California. The St. Regis Monarch Bay Resort is considered to be one of the more exclusive resorts in the country.

Of the $434,344 spent on their trip to the resort, $147,000 was spent on banquets; $139,000 was spent on rooms; $25,000 on leisure dining; $23,000 on spa treatments; and $7,000 on golf fees. In addition, the officials spent $5,000 on a bar tab with gratuities adding up to about $3,000.

The White House considered the AIG "party" to be "despicable".

Rep. Henry Waxman (D-CA), the chairman of the House Oversight and Government Reform Committee, denounced AIG's spending spree, but also stated that AIG continues to pay $1 million a month to an executive at the center of the company's failure.

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