Federal Court adopts loss estimates of Senior Vice President Jeffry Davis for purposes of sentencing executives for securities fraud convictions.

In February 2008 four senior executives of General Reinsurance Corporation and one executive of American International Group (AIG) were found guilty of securities fraud in a scheme designed to falsify AIG’s insurance reserves. EI Senior Vice President Jeffry Davis, serving as an expert to the Department of Justice, provided estimates of the losses to investors caused by the fraud. On October 31, 2008, the judge ruled that Mr. Davis’ estimate of losses between $544 million and $597 million was a reasonable estimate, and, accordingly, he added thirty levels to each defendant’s guideline calculation for sentencing.