American International Group was defending itself againyesterday against reports it paid for a lavish resort junket evenas it was arranging for a greater government bailout.

The giant conglomerate put out a statement today denying anyheavy spending in the wake of televised stories about a financialplanners' seminar at the Pointe Hilton Squaw Peak Resort in Phoenixlast week.

ABC News Phoenix outlet KNXV characterized the meeting–which didnot display AIG logos–as a “secret gathering” and reported they hadhidden videos of AIG executives at pools and spas.

Edward M. Liddy, chairman and chief executive officer ofAmerican International Group, responded with a statement that thenews reports “grossly mischaracterized” the AIG seminar last weekfor 150 independent financial planners.

Mr. Liddy stressed that the financial planners “are not AIGemployees. In addition, the cost to AIG for this event was minimal.More than 90 percent of the costs were paid either by sponsors orby the independent financial planners themselves.”

According to a statement released by AIG at the conference, 18product sponsor firms that took part were underwriting $320,000 ofthe total meeting cost of $343,000, making the company's portionless than $25,000.

Mr. Liddy said it was essential for AIG to conduct such seminars“to keep independent financial planners abreast of investmentproducts and services, including those offered by AIG. Thefinancial planners are responsible for generating almost $200million in revenue this year for AIG as of Sept. 30.”

AIG was first slammed over resort events on Oct. 7, when Rep.Henry Waxman, D-Calif. attacked the company at a hearing for whathe said was a “week-long retreat for company executives” thatinvolved “wining and dining at one of the most exclusive resorts inthe nation”–the St. Regis in Monarch Beach, Calif.

The meeting, which took place less than one week after AIGsecured the first of several government loans that now total $150billion, was held to reward independent agents who brought businessto the company.

Yesterday, Mr. Liddy said that he issued a directive to all AIGemployees and subsidiaries on Oct. 10 to reduce expenses andconserve cash, “including cancelling all nonessential conferencesor meetings, unnecessary travel and excessive overhead.”

Despite this action, a week later the company was jumped on byNew York Attorney General Andrew Cuomo, who threatened a lawsuit ifspending for conferences was not halted.

On Oct. 16, the company issued a joint announcement with Mr.Cuomo, saying AIG had replaced its chief financial officer, wouldcancel 160 conferences and events, and will seek to recover morethan $40 million in payments to two former executives.

Mr. Liddy said that in addition to cancelling events, thecompany had “conducted a top-to-bottom review of all expenses ofthe Phoenix meeting in advance, and found that it was consistentwith my Oct. 10 directive. This conference was approved because itprovides the kind of communication we must conduct with the peoplewho sell our products if we are to be successful and repay the U.S.taxpayer.”

KNXV spoke with Rep. Elijah Cummings, D-Md., and quoted him onthe station's Web site as saying that Mr. Liddy should resign, andthat AIG had come to the government and said “they were drowningand needed help. A person who is drowning doesn't jump up and startpartying.”

The company statement released at the conference also announcedit had cancelled an appearance by sportscaster and formerPittsburgh Steelers quarterback Terry Bradshaw.

It said an AIG Advisor Group had “conducted a top-to-bottomreview of all AMC meeting expenses to validate that only expensesrequired to ensure the meeting's success are incurred. Consistentwith that review, the company determined that the appearance ofTerry Bradshaw as a guest speaker was not required. Although costsrelated to his appearance were to be paid by a product sponsor, hisappearance has been cancelled.”

In commenting on the event, Larry Roth, president and CEO of AIGAdvisor Group, said: “We take very seriously our commitment toaggressively manage meeting costs. Our success in enlisting productsponsors to pay for the vast majority of conference costs, whilecharging financial planners a registration fee and for theirtravel, has resulted in minimal cost to AIG. In turn, our financialplanners benefit from strong educational and training content andthe ability to earn Continuing Education (CE) credits.”