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)

EXHIBIT B

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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:
SAUL B. 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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January 13, 2012, commencing at

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9:32 a.m.

PICARD v. KATZ, et al.

CONFIDENTIAL

SAUL B. KATZ 1/13/12
66

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8244.

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A.

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Q.

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A.

Instead of me -Right.
-- going through and reading the

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whole thing at the moment, would you like to have me

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read it a page at a time?

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Q.

No, no, no.

What I'd actually like

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you to do, if you don't mind and you can do whatever

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you're comfortable with --

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A.

It will take a while to read through

this.
Q.

Yeah, I know, and that's why I'm not

asking you to do that.
A.
Q.

That's what I'm trying to cut back.
I am, too.

All I want you to do is

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familiarize yourself so you have a -- first of all,

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just take a quick look.

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document before?

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A.

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Q.
A.
Q.

No, I haven't.
Okay.
Not that I recall.
All right.

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A.

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not even on here.

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Q.

Have you ever seen this

Is my name on it anywhere?

No, it's

But I don't recall this, no.

The question is, is if you look at
BENDISH REPORTING, INC.
877.404.2193

PICARD v. KATZ, et al.

CONFIDENTIAL

SAUL B. KATZ 1/13/12
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And so the LBO fund does just that.

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management fee and they get a promote.

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They get a

Our Sterling Equities -- I'm sorry,

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Sterling American Properties does the same.

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a management fee and a promote for doing well for a

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partnership.

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Q.

It gets

Okay.

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MR. SHEEHAN:

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Q.

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Let's go to this one.

you, Mr. Katz.

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We're done with that exhibit.

A.

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Sure.

Q.

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here.

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Thank

Of course I probably misspoke again

apologize.

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I do want to go back to that document, I

A.

Sure.

Q.

I should always check with my

colleagues.
A.
against you.

That's okay.

We don't hold it

You can go back.

Q.
A.
Q.

Thank you very much.

It's page 8262.

8262.
And again, it's -- I think the page

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before actually says, "Sterling Stamos Senior

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Investment Team," and it has the description, Peter

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Stamos, Ashok?
BENDISH REPORTING, INC.
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PICARD v. KATZ, et al.

CONFIDENTIAL

SAUL B. KATZ 1/13/12
81

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A.

Ashok.

Q.

Ashok.

You found my weak spot.

I cannot get

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names.

Ellen, leave it at that, and Saul Katz and

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David Katz.

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next page, where your name appears and that of your

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son's.

All right.

So my question is on the

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And this says:

"Mr. Katz," it says

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Saul Katz, "Mr. Katz is a general partner of

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Sterling Stamos and is actively involved in the

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investment decisions, as well as the management of

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Sterling Stamos."

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Would you agree with that statement?
A.

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Q.

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No.

that in there?

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A.
Q.
A.
Q.

Why would you think Mr. Stamos put

When was this done?
December of '04.
I think he was marketing.
There was no truth whatsoever to the

fact that you were involved in investment decisions?
A.

You know, if you ask me when we

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started a -- the real assets, and did he ask me --

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and the private equity --

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Q.
A.

Right.
-- did he ask me what I thought of
BENDISH REPORTING, INC.
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PICARD v. KATZ, et al.

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putting some people in, I may have told him to talk

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to the people at Sterling American Properties, which

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is our real estate fund, and I may have told him to

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speak to American Securities, which is our LBO fund,

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and look at them for his real assets and private

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equity.

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other words, so when he put together those two

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funds, so all of a sudden I'm now advising him.

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didn't tell him to do it.

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And in reality he did invest in both.

suggestions.

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That's a stretch.
So, I think he may have stretched,

but...
Q.
A.

Okay.
Are we going back to that -- now we

get back to decisions.
Q.
A.

Yes, sir.
Okay.

Certainly we didn't

participate in any of the investment decisions.

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There may have been a recommendation.

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say, this is a stretch in my opinion.
Q.

So I just

Well, let me just ask you this.

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Let's say Mr. Stamos decides he wants to make an

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investment.

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I

I may have given him

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In

A.
Q.

Was that exclusively his decision?
Totally.
So that you -- if he -- if you
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objected to it, he would still go ahead and do it?

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A.

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Q.

He wouldn't tell me about it.
So you had no discussion in advance

of what he's investing in?

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A.

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Q.

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187.

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Absolutely none.
Okay.

Let's look at Trustee Exhibit

Thank you.

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We are indeed now done with the last one.

A.
Q.

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We can come back any time you want.
Okay, we may.

You never know.

Again, just for the record, and I'm

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reading off the document, it says on the first page,

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"Sterling Stamos Company Overview, discussion with

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Merrill Lynch, February 2004, confidential

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presentation."

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My first question is going to be, did

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you in any way participate in a confidential

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presentation to Merrill Lynch?

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A.
Q.

No, sir.
Okay.

What relationship -- in this

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time frame -- if any, did Sterling Stamos have to

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Merrill Lynch in February '04?

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A.

If you know.

As I recall, Peter was trying to get

on their platform.
Q.

What does that mean, "get on their
BENDISH REPORTING, INC.
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PICARD v. KATZ, et al.

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A.

No, sir.

Q.

Okay.

So, let's take a look at this

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document.

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you is, have you ever seen this document prior to

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today?

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I guess the first question I should ask

A.
Q.

No, not that I recall.
Okay.

Do you have any recollection

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of Mr. Stamos talking to you about making this

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presentation to Merrill Lynch?

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A.

I recall that he was excited about

having the opportunity to do so.
Q.

Okay.

I'm going to ask you to turn

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to -- these are actually, if you look in the lower

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right-hand corner, there's actually a page, as

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opposed to working our way through those million

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numbers.

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A.
Q.
A.
Q.
partnership.
A.
Q.

Sure.
It's page 3.
Sorry?

Page 3.

And it's talking about the Sterling
Do you see that?
Yes.
And it describes Sterling Stamos as

the investment arm of the Sterling partnership.
A.

Yes.
BENDISH REPORTING, INC.
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Picard v. Saul B. Katz, et al., 11-CV-03605 (JSR)(HBP)
Deposition of Saul B. Katz
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CONFIDENTIAL

Picard v. Saul B. Katz, et al., 11-CV-03605 (JSR)(HBP)
Deposition of Saul B. Katz
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