PHOENIX -- News cameras watched as American International Group, or AIG, executives were once again living it up at a fancy resort in Phoenix.

Cocktail parties, limousines and dinner at a top Phoenix restaurant were part of their latest retreat.

AIG instructed the hotel to keep everything secret, no signs with its name were allowed.

However, NewsChannel5's colleague, reporter Josh Bernstein of our sister station, ABC15, attended the retreat wearing a hidden camera.

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Bernstein's Report

To the outside observer, the 2008 Asset Management Conference held this week at the Pointe Hilton Squaw Peak Resort in Phoenix was nothing out of the ordinary.

Conference participants, however, were notable because of the publicity they've received for their role in the ongoing financial crisis.

The conference at the posh resort included many senior managers at American International Group, or AIG, one of the world's biggest insurers and recipients in September of more than $85 billion from the federal government.

AIG made significant efforts to disguise the conference, making sure there were no AIG logos or signs anywhere on the property.

An AIG spokesperson said there were no AIG markers in order to minimize signage costs and to lower the company's profile.

A hotel employee told ABC15, "We can't even say the word [AIG]."

In addition to the nearly 150 independent financial planners in Phoenix for training and education, the conference attendee list was a Who's Who of AIG leaders, including Larry Roth, President & CEO, AIG Advisor Group; Art Tambaro, President & CEO, Royal Alliance Associates; Mark Schlafly, President & CEO, FSC Securities; Gary Bender, Senior Vice President, Investment Advisory Services; Bruce Levitus, Senior Vice President, Investment Advisory Services; and Stuart Rogers, Senior Vice President.

The ABC15 Investigators went undercover at the resort and found AIG executives having poolside meetings while drinking coffee and working out at the spa while other attendees were in conference rooms for seminars.

We also watched as half a dozen of the executives went to dinner at McCormick & Schmick's at the Camelback Esplanade, racking up a bill of more than $400 for drinks, appetizers, and meals.

The three-day event at the resort was also supposed to feature hall of fame football quarterback Terry Bradshaw as a motivational guest speaker, but the company canceled Bradshaw's appearance shortly before the start of the conference, according to a company spokesperson.

According to the Washington Speakers Bureau, which manages Bradshaw's speaking engagements, he commands a fee of more than $40,000 per appearance.

When confronted about the conference before departing Sky Harbor Airport on Friday morning, Roth and Tambaro referred all questions to the company's public relations department.

In a press release provided to ABC15 following our attempt to speak directly with the executives, AIG claims product sponsors were underwriting $320,000 of the total meeting cost of $343,000.

An AIG spokesperson told the ABC15 Investigators that AIG was paying for the conference and then would be reimbursed by sponsors.

AIG also said the cost of the Bradshaw appearance was to be paid by a sponsor, not the company.

Roth said in the press release, "We take very seriously our commitment to aggressively manage meeting costs. Our success in enlisting product sponsors to pay for the vast majority of conference costs, while charging financial planners a registration fee and for their travel, has resulted in minimal cost to AIG. In turn, our financial planners benefit from strong educational and training content and the ability to earn Continuing Education (CE) credits."

Late Friday afternoon, AIG spokesperson John Pluhowski told ABC15 that, as part of the conference package, the casitas at the resort where executives stayed cost AIG the same per night rate as standard suites.

Pluhowski also said Roth and Tambaro flew round-trip in coach class.

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Full AIG News Release

AIG Advisor Group will host its 2008 Asset Management Conference (AMC) at the Point Hilton Squaw Peak hotel and conference facility in Phoenix, Arizona on November 5 – 7, 2008. Nearly 150 financial planners, who operate their own independent businesses and are not AIG employees will participate in the event. Financial planners attending the meeting represent 23% of total AIG Advisor Group revenue as of September 30, 2008.

The goal of the AMC is to provide an educational, training and networking forum for financial planners. The AMC meeting agenda includes seven general sessions, twenty-two classes, and two working lunches. Topics range from alternative investment products and advisory services strategies to business-building programs, productivity tools, and portfolio management.

Eighteen participating product sponsor firms are underwriting $320,000 of the total meeting cost of $343,000. The company’s portion of the total meeting costs is under $25,000. Additionally, financial planner attendees are responsible for their travel-related expenses, registration fee ($199), and guest registration fee ($250).

AIG Advisor Group has conducted a top to bottom review of all AMC meeting expenses to validate that only expenses required to ensure the meeting’s success are incurred. Consistent with that review, the company determined that the appearance of Terry Bradshaw as a guest speaker was not required. Although costs related to his appearance were to be paid by a product sponsor, his appearance has been cancelled.

In commenting on the event, Larry Roth, President and CEO, AIG Advisor Group, said, “We take very seriously our commitment to aggressively manage meeting costs. Our success in enlisting product sponsors to pay for the vast majority of conference costs, while charging financial planners a registration fee and for their travel, has resulted in minimal cost to AIG. In turn, our financial planners benefit from strong educational and training content and the ability to earn Continuing Education (CE) credits.”

Financial planners are required to complete professional development programs to both earn and maintain industry certifications and designations. AMC attendees are eligible to fulfill CE requirements including: 9.5 hours of CE credits toward Certified Financial Planner® (CFP) certification and 9 hours of CE credits toward three Investment Management Consultants Association (IMCA) designations: Certified Investment Management Analystsm (CIMA), and Chartered Private Wealth Advisorsm (CPWA).

AIG Advisor Group conducts training and educational meetings periodically. The purpose of these meetings is to ensure that independent financial planners receive the knowledge, skills, and training required to meet the evolving needs of their clients. These meetings are also designed to introduce new investment products and technology tools that support the growth of a financial planner’s business.

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Conference Sponsors

(as seen on a board in one of the conference rooms)

• AIG SunAmerica Mutual Funds
• OppenheimerFunds
• Russell Investments
• Brinker Capital
• Investment Advisory Services
• Curian Capital
• Dimensional Fund Advisors
• eMoney Advisor
• Financial Guidance
• Genworth Financial
• Hanlon Investment Management
• Invesco AIM
• Icon Advisers
• IAS
• iShares
• John Hancock
• Lockwood Advisors
• Morningstar
• Rochdale Investment Management