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

Filing 135

DECLARATION of DANA M. SESHENS in Support re: 79 MOTION for Summary Judgment.. 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 BB, # 2 Exhibit CC, # 3 Exhibit DD, # 4 Exhibit EE, # 5 Exhibit FF, # 6 Exhibit GG)(Seshens, Dana)

EXHIBIT DD

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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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v.

Plaintiff,

Videotaped
Deposition of:
MICHAEL KATZ

SAUL B. KATZ, et al.,
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 Baker & Hostetler, 45

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Rockefeller Plaza, New York, New York on Friday,

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December 9, 2011, commencing at 9:38 a.m.

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PICARD v. KATZ, et al.

CONFIDENTIAL

MICHAEL KATZ 12/9/11
327

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Q.

Did you disclose to the 401(k)

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participants that when you tried to withdraw $54

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million from your Madoff accounts that instead of

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honoring the redemption, Mr. Madoff offered to loan

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you the money?

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A.

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I did not then think it was material.
MR. BOHORQUEZ:

That's it for now,

subject to your cross.

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MS. SESHENS:

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questions.

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I just have two

Do you want to go off or we're good to

keep going?

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MR. BOHORQUEZ:

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MS. SESHENS:

Keep going.

Okay.

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EXAMINATION BY MS. SESHENS:
Q.

Mr. Katz, I just have two, perhaps

three follow-up questions for you.

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Do you recall generally that

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Mr. Bohorquez asked you some questions about

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Madoff's auditor earlier today?

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A.
Q.
A.
Q.

I did.
You do recall that?
I do.

I do.

Did you ever have a concern prior to

December 11th, 2008 that Madoff's auditor was
BENDISH REPORTING, INC.
877.404.2193

PICARD v. KATZ, et al.

CONFIDENTIAL

MICHAEL KATZ 12/9/11
328

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something other than a Big Eight accounting firm?
A.
Q.

Did I have a concern?
Okay.

No.

You just gave some testimony

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about a redemption request for $54 million.

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recall that generally?

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A.
Q.

Do you

Yes, I do.
And you spoke about your

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understanding that there was a penalty perhaps

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associated with that redemption if Madoff were in

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the market; is that correct?
A.
Q.

That is correct.
And was that understanding of the

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penalty that your accounts would perhaps earn less

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than they otherwise would if they remained invested?

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A.
Q.

That is correct.
And did you have any direct

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communications with Bernie Madoff about the 54

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million dollar redemption request?

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A.

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MS. SESHENS:

MR. BOHORQUEZ:

I have nothing

We have nothing

further at this time.

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Okay.

further.

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I did not.

THE VIDEOGRAPHER:
the record.

The time is 6:50.

We are going off

This ends tape 6.

BENDISH REPORTING, INC.
877.404.2193