FBI and SEC investigators are hunting for whistle-blowers and is subpoenaing company e-mails and internal documents to see if the facts match the company rhetoric. Contacted by ABC News, AIG declined to comment on the matter.
"The government wants to know whether what people were seeing inside AIG was the same as what they were telling the American people," former Justice Department prosecutor and current George Washington University law professor Stephen A. Saltzburg told ABC News.
A key target is the AIG Financial Products group -- the unit that presided over the company's meltdown -- now scheduled to receive some of the $165 million the company has set aside for bonuses.
"The people who caused the problem are being rewarded for their bad behavior," said Saltzburg.
He added, "I don't know we've ever seen a situation like this where the government is bailing out companies too big to fail and also investigating them at the same time for criminal activity."
So far, the investigation hasn't stopped AIG from doling out huge bonuses, but if the investigation uncovers wrongdoing, some company officials could end up behind bars.