Irving H. Picard v. Saul B. Katz et al

Filing 105

DECLARATION of David C. Newman in Support re: 80 MOTION to Strike THE EXPERT REPORTS AND TESTIMONY OF STEVE POMERANTZ AND HARRISON J. GOLDIN.. Document filed by Charles 15 Associates, Charles 15 LLC, Charles Sterling LLC, Charles Sterling Sub LLC, College Place Enterprises LLC, Coney Island Baseball Holding Company LLC, Estate of Leonard Schreier, FFB Aviation LLC, FS Company LLC, Fred Wilpon Family Trust, Arthur Friedman, Ruth Friedman, Iris J. Katz and Saul B. Katz Family Foundation, Inc., Judy and Fred Wilpon Family Foundation, Inc., Amy Beth Katz, David Katz, Dayle Katz, Gregory Katz, Howard Katz, Iris Katz, 157 J.E.S. LLC, Air Sterling LLC, BAS Aircraft LLC, Jason Bacher, Bon Mick Family Partners LP, Bon-Mick, Inc., Brooklyn Baseball Company LLC, C.D.S. Corp., Michael Katz, Saul B. Katz, Todd Katz, Katz 2002 Descendants' Trust, Heather Katz Knopf, Natalie Katz O'Brien, Mets II LLC, Mets Limited Partnership, Mets One LLC, Mets Partners, Inc., Minor 1 (REDACTED), Minor 2 (REDACTED), L. Thomas Osterman, Phyllis Rebell Osterman, Realty Associates Madoff II, Red Valley Partners, Robbinsville Park LLC, Ruskin Garden Apartments LLC, Saul B. Katz Family Trust, Michael Schreier, Deyva Schreier Arthur, See Holdco LLC, See Holdings I, See Holdings II, Sterling 10 LLC, Sterling 15C LLC, Sterling 20 LLC, Sterling Acquisitions LLC, Sterling American Advisors II LP, Sterling American Property III LP, Sterling American Property IV LP, Sterling American Property V LP, Sterling Brunswick Corporation, Sterling Brunswick Seven LLC, Sterling Dist Properties LLC, Sterling Equities, Sterling Equities Associates, Sterling Equities Investors, Sterling Heritage LLC, Sterling Internal V LLC, Sterling Jet II Ltd., Sterling Jet Ltd., Sterling Mets Associates, Sterling Mets Associates II, Sterling Mets LP, Sterling Pathogenesis Company, Sterling Third Associates, Sterling Thirty Venture LLC, Sterling Tracing LLC, Sterling Twenty Five LLC, Sterling VC IV LLC, Sterling VC V LLC, Edward M. Tepper, Elise C. Tepper, Jacqueline G. Tepper, Marvin B. Tepper, Valley Harbor Associates, Kimberly Wachtler, Philip Wachtler, Bruce N. Wilpon, Daniel Wilpon, Debra Wilpon, Fred Wilpon, Jeffrey Wilpon, Jessica Wilpon, Judith Wilpon, Richard Wilpon, Scott Wilpon, Valerie Wilpon, Wilpon 2002 Descendants' Trust, Robin Wilpon Wachtler. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F)(Seshens, Dana)

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C O N F I D E N T I A L

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UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
11-CV-03605(JSR)(HBP)

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IRVING H. PICARD, Trustee for
the Liquidation of Bernard L.
Madoff Investment Securities LLC,

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Videotaped
Deposition of:

Plaintiff,
v.

BRUCE G. DUBINSKY

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SAUL B. KATZ, et al.,

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Defendants.
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TRANSCRIPT of testimony as taken by and before

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NANCY MAHONEY, Certified Court Reporter, Registered

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Professional Reporter, and Notary Public of the

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States of New York and New Jersey, at the offices of

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Davis Polk & Wardwell, 450 Lexington Avenue

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New York, New York on January 11, 2012, commencing

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at 9:27 a.m.

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PICARD v. KATZ, et al.

CONFIDENTIAL

BRUCE G. DUBINSKY 1/11/12
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our expert referral network of outside experts, and

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many times we'll bring somebody like Dr. Pomerantz

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in on a case and I think his title actually is

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either senior -- senior advisor, senior consultant.

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That's what -- in his agreement with Duff & Phelps.

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So he doesn't have a -- he's not employed by Duff &

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Phelps, if that's what you're asking.

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Q.

person that proposed Dr. Pomerantz for his
assignment in this case.

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As I understand it, you were the

Is that correct?
A.

Well, I would say this:

When I met

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with the lawyers at Baker, they asked if I knew

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anybody and I said I know Dr. Pomerantz, and based

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on the background of what you're looking for, I

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think this might be a person you want to talk to,

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and that's -- you know, I wouldn't call that

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proposing.

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Dr. Pomerantz and met with him and made their

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decision.

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Q.

I gave them the name.

They contacted

What -- what part of Dr. Pomerantz's

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expertise did you think was relevant to what the

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lawyers were looking for?

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A.

They had asked me if I knew anybody

that had experience in the investment management
BENDISH REPORTING, INC.
877.404.2193

PICARD v. KATZ, et al.

CONFIDENTIAL

BRUCE G. DUBINSKY 1/11/12
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business doing due diligence and doing quantitative

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analysis.

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That's Dr. Pomerantz's background.
While I've done some of that, he

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does -- has done and continues to do more than I do.

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So that's what I told them.

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Q.

Are you familiar with the opinions

that he's given in this case?

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A.

I would say generally familiar.

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read the report.

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I don't know if I read the final

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report before it was issued.

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work going on on my report, you know, because of the

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crunch of the deadlines imposed by the court, but at

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some point I saw the report pretty much near the

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end.

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Q.

There was a lot of

I'm going to show you what's been

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marked as Defendants' Exhibit 8, please, which is

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your -- which, I believe, is your engagement letter.

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(Comments off the record.)
Q.

And if you would, please have a look

at that and identify it, if you can, for the record.
A.

Yes, this is the engagement letter

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that I signed on June 14, 2001 (sic) with Baker

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Hostetler for this engagement.

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Q.

And does this engagement letter

address the engagement of Duff & Phelps generally,
BENDISH REPORTING, INC.
877.404.2193