AIG executive, 3 others charged in alleged fraud

LOS ANGELES, Dec 18 (Reuters) - A former human resources executive at American International Group Inc (AIG.N) was arrested on Tuesday along with two others and charged in what federal prosecutors in New York described as a scheme to defraud the insurer of over $1 million.

John Falcetta, a former vice president of human resources at AIG's life insurance division in Manhattan, was accused of funneling company funds to a number of sham "headhunter" or executive search companies and receiving kickbacks in return.

Also charged in the alleged scheme, carried out between 2005 and 2007, were Justin Broadbent, Gary Santone and Thomas Pombonyo, according to documents filed in Manhattan federal court.

Santone and Pombonyo also were arrested on Tuesday. Falcetta, Santone and Pombonyo appeared on Tuesday in federal courts in Boston, Philadelphia and Manhattan, respectively, prosecutors said. Broadbent is still at large, prosecutors said.

Broadbent, Santone and Pombonyo all had existing relationships with Falcetta before he went to work with AIG in 2005, prosecutors said.

Falcetta arranged for them to submit invoices charging AIG for head-hunter services supposedly undertaken to fill vacant positions at the company, the documents said.

Falcetta approved payment for the sham services and received kickbacks from the sham companies to "Human Capital Management Partners," a brokerage account he controlled, the document said.

AIG representatives could not be reached immediately for comment. Neither the defendants nor their lawyers could be immediately located. (Reporting by Gina Keating; Editing by Gary Hill)