Irving H. Picard v. Saul B. Katz et al
Filing
153
DECLARATION of DANA M. SESHENS in Support re: 143 MOTION in Limine TO BAR USE OF PREJUDICIAL PHRASE., 145 MOTION in Limine TO EXCLUDE STERLING STAMOS DOCUMENTS.. 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, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I, # 10 Exhibit J, # 11 Exhibit K, # 12 Exhibit L, # 13 Exhibit M, # 14 Exhibit N, # 15 Exhibit O, # 16 Exhibit P)(Seshens, Dana)
<![CDATA[
EXHIBIT L
In The Matter Of:
SIPC v. BIMIS
PETER S. STAMOS
August 19,2010
BENDISH REPORTING, INC.
271 Route 46W - Suite D204
Fairfield, New Jersey 07004
973.244.1911
business@bendish. com
Original File 08-19-10 STAMOS txt
DPW CONFIDENTIAL
SSMDP00000812
167
PETER S. STAMOS - August 19,2010
02:50:48
1
MR. GOUDISS:
02:50:51
2
02:50:53
3
02:50:56
4
02:51 :12
5
MR. BOHORQUEZ:
02:51 :14
6
(Exhibit PS-2 marked for
02:51 :17
7
02:51 :20
8
02:51 :22
9
02:51:25
10
document entitled liThe Sterling Stamos Difference.
02:51:29
11
I just have one or two questions I want to ask you
02:51:32
12
about it when youlre ready to discuss.
02:52:04
13
02:52:05
14
02:52:09
15
to the second paragraph that starts with, "Internal
02:52:12
16
due diligence network.
02:52:15
17
02:52:16
18
02:52:20
19
over 30 years ago by the Wilpon and Katz families,
02:52:23
20
Sterling Equities has developed a deep expertise in
02:52:26
21
hedge funds, private equi ty and real estate.
02:52:30
22
What is your understanding of
02:52:32
23
02:52:36
24
02:52:39
25
A.
I object.
I donlt -- lim not aware of unique
due diligence capabilities that they provided.
Q.
okay.
Mark that as 2.
identification. )
Q.
Exhibit 2.
A.
Q.
A.
Q.
What live given you, Mr. Stamos, is
Itls a one-page doc -- or a two-page
Yes.
okay.
If you can turn your attention
II
Yes.
The second sentence says, "Founded
Sterling Equities
A.
II
I
II
deep expertise in hedge funds?
I believe that this phrase is what I
would call marketing puffery.
BENDISH REPORTING, INC.
973.244.1911
DPW CONFIDENTIAL
SSMDP00000979
168
PETER S. STAMOS - August 19,2010
02:52:42
1
Okay.
02:52:43
2
02:52:45
3
in hedge funds that they had was investing in
02:52:48
4
Bernard Madoff and two or three other hedge funds,
02:52:51
5
but it was over a 30-year period of time.
02:52:54
6
02:52:57
7
02:52:59
8
02:53:01
9
02:53:03
10
02:53:06
11
02:53:10
12
02:53:14
13
02:53:14
14
02:53:15
15
perspective that only experience can generate, the
02:53:18
16
Wilpon and Katz networks also provide unique
02:53:21
17
proprietary sourcing and due diligence
02:53:25
18
capabili ties.
02:53:26
19
02:53:28
20
02:53:31
21
02:53:34
22
prior question, I think this is, again, a bit of
02:53:36
23
marketing puffery, if you will, about their business
02:53:39
24
experience, giving us business judgment in the early
02:53:43
25
days that was helpful to us in understanding whether
Q.
A.
I believe that the actual experience
Okay.
Q.
What were the other two hedge
funds that they were invested in?
I donlt remember their names, but I
A.
know one of them was a fund manager that they
transferred over to us in kind.
Okay.
Q.
The next sentence beginning
with, "In addition to," do you see that?
Urn-hum.
A.
"In addition to providing a
Q.
II
What due diligence capabilities did
the Wilpon and Katz network provide?
A.
I think that was, referring to your
BENDISH REPORTING, INC.
973.244.1911
DPW CONFIDENTIAL
SSMDP00000980
169
PETER S. STAMOS - August 19,2010
02:53:45
1
a hedge fund manager ran a good business, for
02:53:48
2
example.
02:53:49
3
Q.
02:53:52
4
02:53:56
5
02:53:58
6
real estate, that probably would be the case, and
02:54:01
7
probably private equity as well, because they had
02:54:05
8
funds that did that.
02:54:07
9
recall any specific due diligence capabilities they
02:54:11
10
02:54:15
11
02:54:15
12
02:54:19
13
Sterling Stamos' due diligence practices.
02:54:26
14
discussion of those practices changed over time,
02:54:28
15
they evolved over time.
02:54:31
16
02:54:31
17
02:54:34
18
beginning of the, at the inception of Sterling
02:54:37
19
Stamos.
02:54:43
20
Sterling Stamos' due diligence practices when
02:54:46
21
evaluating investment managers?
02:54:47
22
02:54:49
23
investment advisor, I believe that our primary
02:54:52
24
responsibility was to get access to managers that
02:54:55
25
were hard to get access to, and that we did, beyond
So it wasn't any specific industry
knowledge of due diligence, specifically?
A.
Well, if it was referring to I think
But in hedge funds, I don't
had other than business expertise.
Q.
Okay.
I want to talk for a little bit about
A.
Q.
I guess
Is that right?
Yes.
Okay.
Let's start with at the
Generally speaking, what were, what was
A.
Prior to becoming a registered
BENDISH REPORTING, INC.
973.244.1911
DPW CONFIDENTIAL
SSMDP00000981
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