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

Filing 167

DECLARATION of Regina Griffin in Support re: 162 FIFTH MOTION in Limine To Deem Statements By Sterling Stamos Employees In The Course Of And In Connection With Their Employment By Sterling Stamos As Admissions of The Sterling Defendants.. Document filed by Irving H. Picard. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2 - Filed Under Seal Pursuant to Protective Order, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15 -1, # 16 Exhibit 15 - 2)(Sheehan, David)

Exhibit 6

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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
ADV. PRO. NO. 08-01789 (BRL)

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SECURITIES INVESTOR PROTECTION
CORPORATION,

Videotaped

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Plaintiff-Applicant,
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v.

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BERNARD L. MADOFF INVESTMENT
SECURITIES, LLC,
Defendant.
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In Re:

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BERNARD L. MADOFF,

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Rule 2004
Examination of:

Debtor.
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SAUL B. KATZ

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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 Wednesday,

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August 4, 2010, commencing at 10:04 a.m.

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BENDISH REPORTING, INC.
Litigation Support Services
877.404.2193
www.bendish.com

SAUL B. KATZ 8/4/10

CONFIDENTIAL

SIPC v. BLMIS
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A P P E A R A N C E S:

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BAKER & HOSTETLER, LLP
PNC Center
1900 East 9th Street
Cleveland, OH 44114-3485
BY: THOMAS R. LUCCHESI, ESQ.
For Irving Picard, Trustee
BAKER & HOSTETLER, LLP
45 Rockefeller Plaza
New York, New York 10111
BY: FERNANDO A. BOHORQUEZ, ESQ.
KATHRYN M. ZUNNO, ESQ.
For Irving Picard, Trustee

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DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, NY 10017
BY: DANA M. SESHENS, ESQ.
KAREN E. WAGNER, ESQ.
For Sterling Equities, certain
affiliated entities, and the Witness

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ALSO PRESENT:
GREGORY P. NERO, ESQ., Sterling Equities
DANIEL McCLUTCHY, Videographer

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BENDISH REPORTING, INC.
877.404.2193

SAUL B. KATZ 8/4/10

CONFIDENTIAL

SIPC v. BLMIS
143

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investment thing and we didn't participate in that.
Q.

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A.
Q.

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A.
Q.

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A.
Q.

Would you receive reports in your -Receive what?
Did you receive reports -On due diligence?
Well, stop there, on due diligence?
No.
Would you receive reports about

investment decisions that had been made --

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A.

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Q.

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No.

organization?

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A.
Q.

-- by the Sterling Stamos

No.
What types of reports or information

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would you receive in your role at Sterling Stamos

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regarding the operation of the business of Sterling

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Stamos?

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A.

We'd have periodic meetings, talk

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about how the company is doing, its P & L.

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its investments but its own P & L and its own

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operations.

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Q.

Not in

So whether it was making money

itself?
A.

That's correct.

The Sterling Stamos

company itself which charges to manage money and
BENDISH REPORTING, INC.
877.404.2193

SAUL B. KATZ 8/4/10

CONFIDENTIAL

SIPC v. BLMIS
144

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pays employees and rent to run the business.

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where David and my responsibilities began and ended.

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Q.

That's

And so you would -- at some point the

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goal would be that the fees that the company earned

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would be more than its expenses and the company

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itself would generate a profit?

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A.

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Q.

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A.

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Q.

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A.

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Q.

That's correct.
Has that occurred?
It did occur.
At what point in time?
Not too long after it started.
Did -- in the role you're describing,

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where you have involvement in the business side, not

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the investment side, that's been your role since day

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one?

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A.
Q.

Excuse me?
That's been your role since day one

with Sterling Stamos?
A.
Q.
A.
Q.

Yes.
And that's never changed?
That's right.
Do you receive any information

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concerning the investment decisions made, that are

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ultimately the responsibility of Peter Stamos?

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A.

No.
BENDISH REPORTING, INC.
877.404.2193