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

Filing 112

DECLARATION of David J. Sheehan in Opposition re: 80 MOTION to Strike THE EXPERT REPORTS AND TESTIMONY OF STEVE POMERANTZ AND HARRISON J. GOLDIN.. Document filed by Irving H. Picard. (Attachments: # 1 Exhibit 1-1, # 2 Exhibit 1-2, # 3 Exhibit 1-3, # 4 Exhibit 1-4, # 5 Exhibit 1-5, # 6 Exhibit 1-6, # 7 Exhibit 2, # 8 Exhibit 3)(Sheehan, David)

Exhibit 3

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

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UNITED STATES DISTRICT 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.

DR. STEVE
POMERANTZ

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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 C. BENDISH, Certified Court Reporter, RMR, CRR

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and Notary Public of the States of New York and New

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Jersey, at the offices of Davis, Polk & Wardwell,

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450 Lexington Avenue, New York, New York on Sunday,

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January 8, 2012, commencing at 9:27 a.m.

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PICARD v. KATZ, et al.

CONFIDENTIAL

STEVE POMERANTZ 1/8/12
134

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knows.
Q.

And the same would be true with

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Mr. Wilpon; other than whatever went on with BLMIS,

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you don't know that he has any other experience with

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stock brokerage accounts?

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A.

Well, I mean, there's an affiliation

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with Sterling Stamos, and there's certainly a lot of

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knowledge that is presented to general partners of

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an entity like that.

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So, there's plenty of

experience with those types of things.
Q.

Do you know what Mr. Wilpon's

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connection to Sterling Stamos was, other than being

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named a general partner?

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A.
Q.
A.

I believe he was a general partner.
Right.

Other than that?

Other than what Sterling Stamos

offers his contribution to be, I don't know.
Q.

Do you know whether he ever attended

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any of the investment management meetings at

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Sterling Stamos?

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A.

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Q.

I don't know.
Do you know whether he ever purported

to pick investments at Sterling Stamos?
A.
Q.

I don't know.
How about Mr. Friedman, do you know
BENDISH REPORTING, INC.
877.404.2193

PICARD v. KATZ, et al.

CONFIDENTIAL

STEVE POMERANTZ 1/8/12
177

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Q.

You don't know whether in the United

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States people are free to invest their own money as

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they wish?

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MR. KORNFELD:
A.

Object to form.

That's not what I'm saying.

There's

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a lot of information that is disclosed as part of

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the investment management industry.

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prospectus, there are annual reports, there are

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confirmations.

There is a

If people were free to completely

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ignore everything, then there would be no reason to

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disclose any of this information.

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being disclosed is because it then imparts a

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responsibility to an investor to understand and have

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some basis for what's going on.

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completely free to ignore everything and -- and then

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not have some legal consequence to it.

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Q.

The reason it's

You're not

And the opinions that you've rendered

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in here are based upon the understanding that you've

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just testified to?

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MR. KORNFELD:
A.
Q.
A.

Object to form.

That's not what I said.
Well, are they?
No.

I said that -- I've said that I

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view these defendants as sophisticated investors,

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for reasons that I cite, mainly that I see them as
BENDISH REPORTING, INC.
877.404.2193

PICARD v. KATZ, et al.

CONFIDENTIAL

STEVE POMERANTZ 1/8/12
178

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having the indicia of sophisticated investors.

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I furthermore think that as a result of that

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sophistication, there are expectations.

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Q.

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A.

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Q.

And

Expectations by whom?
The court.
So you think the law imposes an

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expectation that investors will investigate their

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investments?

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MR. KORNFELD:

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A.

Object to form.

That's not what I said.

I said that

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they have indicia of sophisticated investors and the

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court will react to that as it sees fit.

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Q.

All right.

Let's look at some of the

other things you say here.

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You refer throughout your opinion to

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"Sterling," and I think if we go back to page, page

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7 of your report, the bottom line in the text.

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say, "similarly situated to Sterling Equities."

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A.

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Q.

You

Yes.
And then there's a parenthetical and

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it says, quote, "Sterling," close quote; do you see

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that?

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A.
Q.

Yes.
So, I understand that you're adopting

the term "Sterling" to mean Sterling Equities; is
BENDISH REPORTING, INC.
877.404.2193