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

Filing 173

DECLARATION of DANA M. SESHENS in Support re: 164 Memorandum of Law in Opposition to Motion,,,,,,,,,. 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)(Seshens, Dana)

EXHIBIT F

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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

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was simple, well respected member of the community.

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So...

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Q.

When were there -- when did you

become aware of SEC investigations?
A.

When I read about it in the paper,

with those accountants in Florida.
Q.

Were you aware at the time it was

occurring or were you -A.
Q.
A.

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Q.

I saw it in the paper.

-- or after the fact?
After the fact.

After the fact.

I

didn't know --

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No.

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A.
Q.

Let me ask the question differently.
Sure.
Did you read about it in the paper

and become aware of it after the collapse of Madoff?
A.
Q.

No.
Closer in time to when the event

actually happened?
A.

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Q.

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Yes.

Yes.

Florida?

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A.

So you remember the accountants in

Well, I remember there were

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accountants in Florida who got in trouble with the

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SEC and the SEC had Bernie give everybody back their

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money, as I read, which he gave back immediately.

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And the SEC, with this problem, in my mind would

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have investigated Bernie to make sure that Bernie is

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doing the right thing and he wasn't part of the

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charge on the accountants.

And, again, Bernie is

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clean, Bernie is terrific.

SEC has done a good job.

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Q.

Do you remember any other instances

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of becoming aware of SEC investigations of

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Mr. Madoff?

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A.
Q.

No.

Not in detail.

No.

What's the relationship between

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either Sterling or the Mets and Travelers?

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back in 1990, what was the relationship?

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A.
Q.
A.

At least

What time was that?
1990.
I know we borrowed money from them.

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I don't even recall why we borrowed the money, but I

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know we borrowed money from them.

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Q.

Do you recall Travelers doing any

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diligence on Madoff in connection with any of its

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dealings with Sterling?

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A.

Yeah, because we put up some of

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Madoff's accounts for security, so they did an

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investigation with due diligence.

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Q.

Did you have any role in that