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

Filing 89

DECLARATION of David J. Sheehan in Support re: 81 MOTION for Partial Summary Judgment.. Document filed by Irving H. Picard. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8)(Sheehan, David)

Exhibit 6

In The Matter Of:
UNITED STATES OF AMERICA,
ERIC S. LIPKIN,

v.

June 6, 2011

SOUTHERN DISTRICT REPORTERS
500 PEARL STREET
NEW YORK, NY 10007
212 805-0330

Original File 166DLIPP.txt

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UNITED STATES OF AMERICA,
ERIC S. LIPKIN,

v.
June 6, 2011

166dlipp
PLEAUNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF NEW YORK
------------------------------x

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Page 1 166dlipp
PLEA

UNITED STATES OF AMERICA,

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S3 10 Cr. 228 (LTS)

ERIC S. LIPKIN,

6
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New York, N.Y.

v.

Defendant.
------------------------------x

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June 6, 2011
11:11 a.m.

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Before:

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HON. LAURA TAYLOR SWAIN,

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District Judge

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APPEARANCES
PREET BHARARA
United States Attorney for the
Southern District of New York
BY: JULIAN MOORE
LISA A. BARONI
MATTHEW SCHWARTZ
Assistant United States Attorneys
JAMES K. FILAN
Attorney for Defendant
- also present SA Paul Takla, FBI
SA Greg Hagarty, FBI
Natasha Ramesar, Pretrial Services Officer

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THE COURT: I will now explain certain rights that you
have under the Constitution of the United States.
You have the right to remain silent. You need not
make any statement. Even if you have already made statements

to the authorities, you need not make any additional
statements. Any statements that you do make can be used

against you.
Do you understand these rights?
THE DEFENDANT: Yes, I do.
THE COURT: You have the right to be released either
conditionally or unconditionally pending trial unless I find
that there are no conditions that would reasonably assure your

presence at future court hearings and the safety of the
community. If the government were to ask me to detain you
pending trial, you are entitled to a prompt hearing on whether

such conditions exist.
Do you understand this right?
THE DEFENDANT: Yes, I do.
THE COURT: Are you a citizen of the United States?
THE DEFENDANT: Yes, I am.
THE COURT: You have the right to be represented by an
attorney today and at all future proceedings in this case, and

if you are unable to afford an attorney, I will appoint an
attorney to represent you. Do you understand these rights?

THE DEFENDANT: Yes, I do.

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THE CLERK: I call the case, United States of America
versus Eric Lipkin.
MR. MOORE: Good morning, your Honor. Julian Moore
for the government. With me are my colleagues Lisa Baroni and

Matthew Schwartz, of the U.S. Attorney's office, along with
Special Agents Greg Hagarty and Paul Takla, of the FBI, and

Natasha Ramesar of the United States Pretrial Services.
THE COURT: Good morning, Mr. Moore, Ms. Baroni and
Mr. Schwartz, Agent Hagarty, Agent Takla, and Officer Ramesar.

MR. FILAN: Good morning, your Honor.

James K. Filan,

counsel on behalf of Mr. Lipkin, who is seated at the table

next to me.
THE COURT: Good morning, Mr. Filan.
Mr. Lipkin.

Good morning,

And, again, good morning all of you who have attended

today.
Is this Mr. Lipkin's first appearance?
MR. FILAN: Yes, it is, your Honor.
THE COURT: All right. Well, then, let's deal with
the advice of rights matters first.
Mr. Lipkin, would you please stand.
Please state your full name.
THE DEFENDANT: Eric Lipkin.
THE COURT: How old are you, sir?
THE DEFENDANT: 37.

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THE COURT: Do you wish to have and are you able to
2 obtain and afford counsel on your own?
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THE DEFENDANT: Yes, I am.
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THE COURT: Have you retained Mr. Filan to represent
5 you?
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THE DEFENDANT: I have.
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THE COURT: And it is your desire to proceed in these
8 matters with Mr. Filan as your retained counsel?
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THE DEFENDANT: Yes.
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THE COURT: And I am informed that -- Mr. Filan
11 informed that Mr. Lipkin has an application to waive indictment
12 and enter a guilty plea to the six-count Superseding
13 Information that is labeled S3 10 Criminal 228.
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Is that correct?
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MR. FILAN: That is correct, your Honor.
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THE COURT: And this plea is pursuant to the agreement
17 that has been marked as Government Exhibit 1, and is at defense
18 table now?
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MR. FILAN: That is correct, your Honor.
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THE COURT: And you and Mr. Lipkin have also reviewed
21 and signed the advice of rights form that has been marked as
22 Court Exhibit 1.
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MR. FILAN: We have, your Honor.
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THE COURT: Thank you. I have a question for
25 Mr. Moore at this point.

SOUTHERN DISTRICT REPORTERS

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UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
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1 answer any of my questions falsely, your false or untrue
2 answers may later be used against you in another prosecution
3 for perjury or making a false statement?
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THE DEFENDANT: I do.
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THE COURT: You can be seated for the next portion of
MR. MOORE: Yes, your Honor.
6 the proceeding.
Last week we issued a letter to your attention
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You indicated that your age is 37, is that correct?
requesting that we make public that this proceeding will be
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THE DEFENDANT: Yes.
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THE COURT: How far did you go in school?
occurring today, namely, that Mr. Lipkin will be pleading to a
THE DEFENDANT: I graduated from Ramapo College.
superseding S3 Information to the counts, which we will go 10
through today. We also requested that we be able to post this 11
THE COURT: In what field of study?
announcement on the U.S. Attorney's Madoff website. 12
THE DEFENDANT: Economics. I also have an associates
Your Honor kindly ordered -- so ordered that letter on 13 degree in finance.
THE COURT: Are you able to speak, read and understand
Thursday, and those conditions did happen as of that date. 14
THE COURT: Thank you.
15 the English language well?
Now, I had received a call indicating that there was 16
THE DEFENDANT: Yes.
one victim who wished to be heard today. This morning we 17
THE COURT: And you are a citizen of the United
received a further message that that person is unable to attend 18 States?
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THE DEFENDANT: I am.
court today.
THE COURT: Are you now or have you recently been
Is the government aware of any victims who are here 20
21 under the care of a doctor or a psychiatrist?
present today who wish to be heard?
THE DEFENDANT: No.
MR. MOORE: We are not, your Honor. However, we are 22
aware that your deputy, Ms. Ng, did make a sign-up sheet 23
THE COURT: Have you ever been treated or hospitalized
available, but we do not believe anyone signed that sheet. 24 for any mental illness or for any type of addiction, including
THE COURT: It's my understanding that no one has 25 drug or alcohol addiction?

Mr. Moore, would you please make a statement for the
record as to the government's victim notification activities in
connection with this matter. I note that the courtroom is full
and that I signed an order requiring certain information be
posted on the website, but perhaps you can bring us up to date.

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signed on the sheet.
Is there anyone here who does wish to be heard?
(Pause)
All right. We will proceed, then.

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THE DEFENDANT: No.
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THE COURT: Have you ever been addicted to any drugs
3 or alcohol?
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THE DEFENDANT: No.
Mr. Lipkin, before I accept your Waiver of Indictment
5
THE COURT: In the past 24 hours, have you taken any
and your guilty plea, there are a number of questions that I
6 drugs, medicine, or pills, or have you drunk any alcohol?
must ask you while you are under oath to assure that it is a 7
THE DEFENDANT: No.
valid waiver and plea. At times I may cover a point more than
8
THE COURT: Is your mind clear today?
once, and I may cover matters that were also addressed in the
9
THE DEFENDANT: It is.
advice of rights form that you have seen. But if I do so, that 10
THE COURT: Are you feeling well physically today?
is because it is very important that you understand what is 11
THE DEFENDANT: Yes.
happening here today.
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THE COURT: Are you represented by a lawyer here
If you don't understand something that I ask you, 13 today?
please say so and I will reword the question or you may speak 14
THE DEFENDANT: I am.
with your attorney. Do you understand that?
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THE COURT: What is your attorney's name?
THE DEFENDANT: I do.
16
THE DEFENDANT: James Filan.
THE COURT: Ms. Ng, would you please administer the 17
THE COURT: Mr. Filan, Mr. Moore, does either of you
oath.
18 have any doubt as to Mr. Lipkin's competence to waive
THE CLERK: Please raise your right hand.
19 indictment and enter a plea at this time?
(The defendant was sworn)
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MR. MOORE: No, your Honor.
THE COURT: Would you please state your full name for 21
MR. FILAN: I have no knowledge. He should be able
the record.
22 to, yes, your Honor.
THE DEFENDANT: Eric Scott Lipkin.
23
THE COURT: Thank you. You have no knowledge of any
THE COURT: Mr. Lipkin, do you understand that you 24 reason for me -have solemnly promised to tell the truth, and that if you 25
MR. FILAN: I have no reason to believe that he is

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SOUTHERN DISTRICT REPORTERS

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UNITED STATES OF AMERICA,
ERIC S. LIPKIN,

v.

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unable to enter a plea. I'm sorry.
THE COURT: Thank you.

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Mr. Lipkin, your attorney has informed me that you 3
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wish to waive indictment and enter a plea of guilty to an
information. Do you wish to waive indictment and enter a 5
guilty plea?
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THE DEFENDANT: Yes.
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THE COURT: Have you fully discussed your case with 8
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your attorney, including the charges to which you intend to
plead guilty and any possible defenses you may have to those 10
charges?
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THE DEFENDANT: I have.
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THE COURT: Have you and your attorney also discussed 13
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the consequences of entering a guilty plea?
THE DEFENDANT: Yes, we have.
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THE COURT: Are you satisfied with your attorney and 16
his representation of you?
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THE DEFENDANT: I am.
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THE COURT: On the basis of Mr. Lipkin's responses to 19
my questions and my observations of his demeanor, I find that 20
he is fully competent to enter an informed plea at this time 21
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and to waive indictment.
Before I accept your plea, sir, I am going to ask you 23
many so more questions. These questions are intended to 24
satisfy the Court that you wish to plead guilty because you are 25

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June 6, 2011
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THE DEFENDANT: I do.
THE COURT: If there were a trial, and at all stages
leading up to it, you would have the right to be represented by
an attorney, and if you could not afford one, an attorney would

be provided to you free of cost. Do you understand that?

THE DEFENDANT: I do.
THE COURT: If there were a trial, you would have the
right to see and hear all of the witnesses against you and your
attorney could cross-examine them. You would also have the
right to have your attorney object to the government's evidence

and offer evidence on your behalf, if you so desired. In
addition, you would have the right to have witnesses required
to come to court to testify in your defense, and you would have
the right to testify yourself but you would not be required to

testify.
Do you understand all of that?
THE DEFENDANT: I do.
THE COURT: Do you understand that if there were a
trial and you decided not to testify, no adverse inference
could be drawn against you based on your decision not to

testify?
THE DEFENDANT: Yes.
THE COURT: Do you understand that if you were
convicted at a trial, you would have the right to appeal that

verdict?

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PLEA

in fact guilty and that you fully understand your rights and

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you certain rights that you have under the Constitution and
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laws of the United States. You will be giving up these rights
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if you enter a guilty plea. Please listen carefully. If you
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do not understand something that I'm saying or describing, stop
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me and I or your attorney will explain it more fully.
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Under the Constitution and laws of the United States,
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you have the right to a speedy and public trial by a jury on 9
the charges against you that are set out in the Information. 10
Do you understand that.
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THE DEFENDANT: I do.
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THE COURT: Do you understand that you have the right 13
to plead not guilty and to continue to plead not guilty? 14
THE DEFENDANT: I do.
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THE COURT: If there were a trial, you would be 16
presumed innocent and the government would be required to prove 17
you guilty by competent evidence and beyond a reasonable doubt. 18
You would not have to prove that you were innocent at a trial. 19
Do you understand that?
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THE DEFENDANT: I do.
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THE COURT: If there were a trial, a jury composed of 22
12 people selected from this district would have to agree 23
unanimously in order to find you guilty. Do you understand 24
that?
25

the consequences of your plea. I am now going to describe to

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THE DEFENDANT: Yes.
THE COURT: Do you understand each and every one of
these rights that I've asked you about?
THE DEFENDANT: I do.
THE COURT: Do you have any questions about any of
these rights?
THE DEFENDANT: No, I do not.
THE COURT: Do you understand that by entering a
guilty plea today you will be giving up each and every one of

these rights?
THE DEFENDANT: I do.
THE COURT: Do you also understand that you will be
giving up any possible claim that your constitutional rights

may have been violated?
THE DEFENDANT: I do.
THE COURT: And do you understand that you will have
no trial if you plead guilty?
THE DEFENDANT: Yes.
THE COURT: Do you understand that by entering a
guilty plea, you will also have to give up your right not to
incriminate yourself because I will ask you questions about
what you did in order to satisfy myself that you are guilty as
charged and you will have to admit and acknowledge your guilt?

THE DEFENDANT: Yes.
THE COURT: Do you understand that you can change your

SOUTHERN DISTRICT REPORTERS

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UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
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mind right now and refuse to enter a plea of guilty? You do

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which you've indicated you wish to plead guilty is called an 8
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information. It has been issued by the United States Attorney.
You have a constitutional right to be charged by an indictment 10
rather than an information. An indictment would be a charge 11
issued from the grand jury. Do you understand that? 12
THE DEFENDANT: I do.
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THE COURT: Mr. Filan, would you please show 14
Mr. Lipkin the Waiver of Indictment form.
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(Pause)
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Mr. Lipkin, have you signed this Waiver of Indictment? 17
THE DEFENDANT: I have.
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THE COURT: Did you read it before you signed it? 19
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THE DEFENDANT: I did.
THE COURT: You did discuss it with your attorney 21
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before you signed it?
THE DEFENDANT: Yes.
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THE COURT: Did you understand it before you signed 24
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it?

not have to enter this plea if you do not want to for any
reason. Do you understand this fully?
THE DEFENDANT: Yes.
THE COURT: Do you still wish to plead guilty?
THE DEFENDANT: I do.
THE COURT: The document that contains the charges to

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THE COURT: Have you discussed it with your attorney?
THE DEFENDANT: Yes, we have.
THE COURT: Do you understand the charges against you
that are detailed in the Information?
THE DEFENDANT: I do.
THE COURT: If you would like, I can read the
Information out loud now here in court to you. Do you want me

to read it out loud to you?
THE DEFENDANT: No.
THE COURT: I find that Mr. Lipkin's Waiver of
Indictment is knowing and voluntary. I accept it and I so

order it.
Mr. Lipkin, do you understand that Count One of the
Superseding Information charges you with violating Section 371

of Title 18 of the United States Code by participating in a
conspiracy to, one, violate 15 United States Code, Sections

78q(a) and 78ff and Title 17 of the Code of Federal
Regulations, Section 240.17a-3 by falsifying books and records

of a broker-dealer, as well as conspiring to violate Title 15
of the United States Code, Sections 80b-4 and 80b-17 and 17
C.F.R., Section 275.204-2 by falsifying books and records of an
investment advisor, and also conspiring to violate Title 18 of

the United States Code, Sections 1027 and 2 by falsifying
statements to facilitate the theft concerning ERISA, that being

the Employee Retirement Income Security Act?

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THE DEFENDANT: Yes, I did.
THE COURT: Do you understand that if you do not waive

1
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indictment, if the government wished to prosecute you on these
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particular charges that are in the Information, the government
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would have to present the case to the grand jury, which might
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or might not indict you on those charges?
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THE DEFENDANT: Yes.
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THE COURT: Do you understand that you are under no 8
obligation to waive indictment?
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THE DEFENDANT: Yes.
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THE COURT: Do you understand that by waiving 11
indictment, you are giving up your right to have the case 12
presented to the grand jury?
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THE DEFENDANT: Yes.
14
THE COURT: Do you understand what a grand jury is? 15
THE DEFENDANT: I do.
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THE COURT: Did anyone make any threats or promises to 17
get you to waive indictment?
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THE DEFENDANT: No, they did not.
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THE COURT: Have you seen a copy of the Third 20
Superseding Information that has the word "Information" at the 21
top and the number S3 10 Cr. 228 on it?
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THE DEFENDANT: I did.
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THE COURT: Have you read it?
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THE DEFENDANT: Yes.
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Page 13 - Page 16 (4)

Page 16

THE DEFENDANT: Yes.
THE COURT: Do you understand that Count Two of the
Superseding Information charges you with violating Title 18 of

the United States Code, Section 371 by participating in a
conspiracy to violate Title 18, Section 1344, by defrauding a
financial institution, the deposits of which were then insured

by the Federal Deposit Insurance Corporation?
THE DEFENDANT: Yes.
THE COURT: Do you understand that Count Three of the
Superseding Information charges you with falsifying books and

records of a broker-dealer, in violation of 15 United States
Code, Sections 78q(a) and 78ff; 17 of the Code of Federal
Regulations, Section 240.17a-3; and Title 18 of the United

States Code, Section 2?
THE DEFENDANT: Yes.
THE COURT: Do you understand that Count Four of the
Superseding Information charges you with falsifying books and

records of an investment advisor, in violation of Title 15 of
the United States Code, Sections 80b-4 and 80b-17; 17 Code of

Federal Regulations, Section 275.204-2; and Title 18 of the

United States Code, Section 2?
THE DEFENDANT: Yes.
THE COURT: Do you understand that Count Five of the
Superseding Information charges you with making false
statements to facilitate a theft concerning ERISA, in violation

SOUTHERN DISTRICT REPORTERS

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UNITED STATES OF AMERICA,
ERIC S. LIPKIN,
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June 6, 2011
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of 18 United States Code, Sections 1027 and 2?
THE DEFENDANT: Yes.
THE COURT: And do you understand that Count Six of

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the Superseding Information charges you with committing bank
fraud with respect to a federally insured bank, in violation of
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Title 18 of the United States Code, Sections 1344 and 2? 6
THE DEFENDANT: Yes.
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THE COURT: Do you understand that the government 8
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would have to prove each and every part or element of each of
these charges beyond a reasonable doubt at trial if you did not 10
plead guilty?
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THE DEFENDANT: I do.
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THE COURT: Mr. Moore, would you please explain for 13
the record the elements that the government would have to prove 14
if you were to go to trial on these charges?
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MR. MOORE: Certainly, your Honor.
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With regard to Counts One and Two, the conspiracy 17
counts, in order to prove the crime of conspiracy, the 18
government must establish each of the following elements beyond 19
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a reasonable doubt:
First, that the conspiracy charged in the Information 21
existed, in other words, that there was in fact an agreement or 22
understanding to violate the laws of the United States; 23
Second, your Honor, that the defendant knowingly, 24
willingly and voluntarily became a member of the conspiracy 25

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v.

rules and regulations; third, that the defendant aided and
abetted BLMIS' failure to make and keep accurate records;
fourth, that the defendant acted knowingly and willfully; and,
fifth, the offense involved the use of the mails and means and

instrumentalities of interstate commerce.
With regard to Count Five, falsifying statements to
facilitate a theft concerning ERISA, in order to prove this
crime the government must demonstrate beyond a reasonable doubt

that, first, that at the time of the alleged offense, the
defendant made a false statement; second, that the defendant
knew the statement to be false; and, third, that the defendant
made a false statement in a document required by ERISA.
Finally, your Honor, with regard to Count Six, bank
fraud, in order to prove this crime beyond a reasonable doubt,
the government must demonstrate, first, that at the time of the
alleged offense the defendant executed or attempted execute a
scheme or artifice to defraud a bank, or that the defendant
execute or attempted to execute a scheme or artifice to obtain
money owned by or under the custody or control of that bank by

means of false or fraudulent pretense, representations or
promises; second, your Honor, the defendant engaged in a scheme

or artifice knowingly and willfully and with the specific
intent to defraud the bank; and, third, that the bank involved

was a federally chartered or insured financial institution.

THE COURT: Thank you.

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charged;
And, third, that any one of the conspirators, not

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necessarily the defendant, knowingly committed at least one
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overt act in the Southern District of New York in furtherance
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of the conspiracy during the life of that conspiracy.
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With regard to Count Three, your Honor, falsifying
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broker-dealer books and records, in order to prove this crime,
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the government must prove beyond a reasonable doubt the 8
following elements:
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First, that at the time of the alleged offense,
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Bernard L. Madoff Investment Securities, otherwise known as 11
"BLMIS," was a registered broker;
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Second, that BLMIS failed to make and keep certain 13
accurate records, as required under the SEC's rules and 14
regulations;
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Third, that the defendant aided and abetted BLMIS' 16
failure to make and keep accurate records; and
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Fourth, that the defendant acted knowingly and 18
willfully.
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With regard to Count Four, your Honor, falsifying 20
books and records of an investment advisor, the government must 21
prove beyond a reasonable doubt:
22
First, that at the time of the alleged offense BLMIS 23
was an investment advisor; second, that BLMIS failed to make 24
and keep certain accurate records as required under the SEC's 25

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Mr. Lipkin, do you understand the matters that the
government would have to prove if you did not plead guilty?

THE DEFENDANT: Yes, I do.
THE COURT: Do you understand that the maximum
possible penalty for the crime with which you are charged in
Count One is five years of imprisonment, plus a fine of the
greatest of $250,000, twice the gain resulting from the offense
or twice the loss to other people resulting from the offense,

plus a $100 special assessment, plus full restitution to all
persons injured as a result of your criminal conduct, plus

three years of supervised release after your term of
imprisonment?
THE DEFENDANT: I do.
THE COURT: Do you understand that the maximum
possible penalty for the crime with which you are charged in
Count Two is five years of imprisonment, plus a fine of the
greatest of $250,000, twice the gain resulting from the offense
or twice the loss to other people resulting from the offense,

plus a $100 special assessment, plus full restitution to all
persons injured as a result of your criminal conduct, plus

three years of supervised release after your term of
imprisonment?
THE DEFENDANT: I do.
THE COURT: Do you understand that the maximum
possible penalty for the crime with which you are charged in

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Count Three is 20 years of imprisonment, plus a fine of the

greatest of $5 million, twice the gain resulting from the
offense or twice the loss to other people resulting from the
offense, plus a $100 special assessment, plus full restitution
to all persons injured as a result of your criminal conduct,

plus three years of supervised release after your term of
imprisonment?
THE DEFENDANT: I do.
THE COURT: Do you understand that the maximum
possible penalty for the crime with which you are charged in
Count Four is five years of imprisonment, plus a fine of the
greatest of $250,000, twice the gain resulting from the offense
or twice the loss to other people resulting from the offense,

plus a $100 special assessment, plus full restitution to all
persons injured as a result of your criminal conduct, plus

three years of supervised release after your term of
imprisonment?
THE DEFENDANT: I do.
THE COURT: Do you understand that the maximum
possible penalty for the crime with which you are charged in
Count Five is five years of imprisonment, plus a fine of the
greatest of $250,000, twice the gain resulting from the offense
or twice the loss to other people resulting from the offense,

plus a $100 special assessment, plus full restitution to all
persons injured as a result of your criminal conduct, plus

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possible penalty for the crime with which you are charged in

Count Six is 30 years of imprisonment, plus a fine of the
greatest of $1 million, twice the gain resulting from the
offense or twice the loss to other people resulting from the
offense, plus a $100 special assessment, plus full restitution
to all persons injured as a result of your criminal conduct,
plus five years of supervised release after your term of

imprisonment?
THE DEFENDANT: I do.
THE COURT: Do you understand that the maximum
possible combined penalty for the six crimes with which you are

charged is 70 years of imprisonment plus a fine of $7 million
or, if greater, the sums of the relevant gains and losses and

statutory amounts relating to your offenses, plus full
restitution to all persons injured by your criminal conduct,
plus a $600 mandatory special assessment, plus supervised

release for five years after your term of imprisonment?
THE DEFENDANT: I do.
THE COURT: I will now give you some information to
verify your understanding of the supervised release aspect of

Page 21 - Page 24 (6)

"Supervised release" means that you will be subject to
monitoring when you are released from prison. Terms and
conditions will be imposed. If you violate any of the set
terms and conditions, you can be reimprisoned without a jury

trial.
If you were on supervised release and do not comply
with any of the set terms or conditions, you can be returned to
prison for the remainder of the term of supervised release, you
will be given no credit for the time that you served in prison
as a result of your sentence and no credit for any time spent
on post-release supervision. So, for example, if you received
a prison term and then a three-year term of supervised release

and after you left prison you lived up to the terms of
supervised release for two years but then you violated some
term of the supervised release, you could be returned to prison

for three full years.
Do you understand that?
THE DEFENDANT: I do.
THE COURT: Do you also understand that if I accept
your guilty plea and adjudge you guilty, that adjudication may

deprive you of valuable civil rights, such as the right to
vote, the right to hold public office, the right to serve on a

jury, and the right to possess any kind of firearm?
THE DEFENDANT: I do.
THE COURT: Do you understand that there are

Page 22 166dlipp
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three years of supervised release after your term of
imprisonment?
THE DEFENDANT: I do.
THE COURT: Do you understand that the maximum

the potential penalty.

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Sentencing Guidelines that the Court must consider in
determining your sentence?
THE DEFENDANT: I do.
THE COURT: Has your attorney discussed the Sentencing
Guidelines with you?
THE DEFENDANT: He has.
THE COURT: Do you understand that in determining your
sentence, the Court has an obligation to calculate the
applicable Sentencing Guidelines' range and to consider that
range, possible departures under the Sentencing Guidelines, and

other sentencing factors under Title 18 of the United States

Code, Section 3553(a)?
THE DEFENDANT: I do.
THE COURT: Do you understand that if your attorney or
anyone else has attempted to estimate or predict what your
sentence will be, their estimate or prediction could be wrong?

THE DEFENDANT: Yes.
THE COURT: Do you also fully understand that even if
your sentence is different from what your attorney or anyone
else told you it might be, or if it is different from what you

expect, you will still be bound to your guilty plea and you

will not be allowed to withdraw your plea of guilty?
THE DEFENDANT: Yes.
THE COURT: Do you understand that the sentence to be
imposed will be determined solely by the Court and that I can

SOUTHERN DISTRICT REPORTERS

Min-U-Script®

UNITED STATES OF AMERICA,
ERIC S. LIPKIN,
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v.
June 6, 2011
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only determine the sentence after the Probation Department

prepares a presentence report?
THE DEFENDANT: I do.
THE COURT: Do you understand that the Court has
discretion, while taking into account the specific provisions
and policy statements in the guidelines, to sentence you to any
number of years imprisonment between zero and the combined

statutory maximums of 70 years?
THE DEFENDANT: I do.
THE COURT: Are you now serving any state or federal
sentence, or are you being prosecuted for any other crime?

THE DEFENDANT: I'm not.
THE COURT: Do you understand that the Superseding
Information also includes a forfeiture allegation in which the

government asserts that you are required to forfeit to the
United States any and all property constituting and derived
from any proceeds that you obtained as a result of the crimes
charged in Counts One, Two, Three and Six, including up to
approximately $143.2 billion as to Counts One and Three and
approximately $700,000, including your interest in certain real

property, as to each of Counts Two and Six?
MR. FILAN: Your Honor, Mr. Lipkin understands that he
has to admit to the forfeiture allegation regarding the bank
fraud crimes in Two and Six, but he is not admitting today to

Count One and Three.

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THE COURT: Is everything that you understand about
your plea, cooperation and sentence covered in this agreement?
THE DEFENDANT: Yes.
THE COURT: Has anything been left out?
THE DEFENDANT: I don't believe so.
THE COURT: Has anyone made any promises to you other
than what is set out in that agreement or threatened you or
forced you to plead guilty or to enter into this agreement?

THE DEFENDANT: No.
THE COURT: Do you understand that even if the
government does not oppose or take a position on what your
attorney will ask as a sentence, I am free to impose whatever
sentence I believe is appropriate under the circumstances and
the applicable law and you will have no right to withdraw your

plea?
THE DEFENDANT: Yes.
THE COURT: Do you understand that this agreement
provides that prior to the date of sentencing, you must file
accurate amended tax returns for the years 2006, 2007, 2008 and
2009, and pay or enter into an agreement to pay past taxes due
and owing by you to the Internal Revenue Service, including any

applicable penalties?
THE DEFENDANT: Yes.
THE COURT: Do you understand that the agreement
provides that you must cooperate fully with the office of the

Page 26 166dlipp
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1
THE COURT: Yes. In this section of the allocution, I
2 am confirming his understanding that there is a forfeiture
3 allegation. We will get to the admission issues later.
4
MR. FILAN: Absolutely, your Honor. I just wanted -5 he showed some confusion there, and I wanted to make sure he
6 understood that.
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THE COURT: Mr. Filan, would you please show
8 Mr. Lipkin the agreement, Government Exhibit 1.
9
(Pause)
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MR. FILAN: Yes, your Honor.
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THE COURT: Mr. Lipkin, have you signed this
12 agreement?
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THE DEFENDANT: I have, your Honor.
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THE COURT: Did you read it before you signed it?
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THE DEFENDANT: Yes.
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THE COURT: Did you fully discuss it with your
17 attorney before you signed it?
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THE DEFENDANT: Yes, we did.
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THE COURT: Did you fully understand it before you
20 signed it?
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THE DEFENDANT: Yes.
22
THE COURT: Does the agreement accurately reflect your
23 complete and total understanding of the entire agreement
24 between the government, your attorney and you?
25
THE DEFENDANT: Yes.

Min-U-Script®

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Page 28

United States Attorney, the Federal Bureau of Investigation,
and any other law enforcement agency designated by the United

States Attorney?
THE DEFENDANT: I do.
THE COURT: Do you understand that the agreement does
not bind any federal, state or local prosecuting authority

other than the United States Attorney?
THE DEFENDANT: I do.
THE COURT: Do you understand that the agreement
provides that if the United States Attorney determines that you

have provided substantial assistance in an investigation or

prosecution, and if you have fully complied with the
understandings specified in the agreement, that the United
States Attorney will file a motion pursuant to Section 5K1.1 of
the Sentencing Guidelines requesting that the Court sentence

you in light of the factors set forth in subdivision (a)(1)
through (5) of that Section of the guidelines?
THE DEFENDANT: Yes, I do.
THE COURT: Do you understand that the factors that
the Court may consider under Section 5K1.1 include the
significance and usefulness of your assistance, taking into
account the government's evaluation of your assistance; the
truthfulness, completeness and reliability of any information
or testimony you provided; the nature and extent of your
assistance; any injuries suffered or any danger or risk of

SOUTHERN DISTRICT REPORTERS

(7) Page 25 - Page 28

UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
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injury to you on your family as a result of your assistance;

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States Attorney files such a motion, the sentence to be imposed
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on you remains within the sole discretion of the Court?
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THE DEFENDANT: Yes.
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THE COURT: Do you understand that you will not be 8
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entitled to withdraw your plea if the Court denies the motion?
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THE DEFENDANT: I do.
THE COURT: Do you understand that if United States 11
Attorney determines that you have not provide substantial 12
assistance in an investigation or prosecution or that you have 13
violated any provision of the agreement, the United States 14
Attorney is not obligated to file a motion under Section 5K1.1? 15
THE DEFENDANT: I do.
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THE COURT: Do you understand that you will not be 17
entitled to withdraw your guilty plea even if the United States 18
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Attorney has not filed a motion?
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THE DEFENDANT: I do.
THE COURT: Do you understand that your agreement 21
provides that if you commit any further crimes or if it is 22
determined that you gave false, incomplete or misleading 23
testimony or information, or that you otherwise violated any 24
provision of the agreement, you will be subject to prosecution 25

and the timeliness of your assistance?
THE DEFENDANT: Yes, I do.
THE COURT: Do you understand that even if the United

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against you in the total amount of $1.4 million in United
States currency, and that you will forfeit all of your interest
in certain real property in Ridgewood, New Jersey and in
certain accounts held in the names of or for the benefit of
you, your wife and minor children at Fidelity Investments?

THE DEFENDANT: Yes.
THE COURT: Mr. Filan, is that a correct statement?
MR. FILAN: Absolutely, your Honor. Thank you.
THE COURT: Mr. Lipkin, do you still wish to plead
guilty pursuant to this agreement?
THE DEFENDANT: I do.
THE COURT: Mr. Filan, do you know of any valid reason
why Mr. Lipkin would prevail at trial?
MR. FILAN: I do not, your Honor.
THE COURT: Do you know any reason why he should not
be permitted to plead guilty?
MR. FILAN: I do not.
THE COURT: Mr. Lipkin, would you please stand at this
time and tell me what you did that makes you guilty of each of

the crimes charged in the third Superseding Information.

THE DEFENDANT: Your Honor, I would like to first
apologize to my family, my friends, and all the victims in this

case. I'm very sorry for my conduct.
I now want to address my actions as they relate to the

charges against me.

Page 30 166dlipp
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for any federal violations of which the United States Attorney
has knowledge, including perjury and obstruction of justice?

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THE COURT: Do you understand that your agreement 4
provides that if you commit any further crimes, or if it is
5
determined that you gave false, incomplete or misleading 6
testimony or information, or that you otherwise violated any
7
provision of this cooperation agreement, all statements made by
8
you to the United States Attorney or other designated law
9
enforcement agents and any testimony given by you before a 10
grand jury or other tribunal may be admissible in evidence in 11
any criminal proceedings against you?
12
THE DEFENDANT: I do.
13
THE COURT: Do you understand that your agreement also 14
provides that you may not assert a claim that such statements 15
should be suppressed from evidence and that you are waiving 16
your right to claim that such statements should be suppressed? 17
THE DEFENDANT: I do.
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THE COURT: Do you understand that on page 3, this 19
agreement also includes your agreement to forfeit to the United 20
States any and all property constituting and derived from any 21
proceeds that you obtained as a result of the crimes charged in 22
Counts One, Two, Three and Six in an amount to be determined by 23
the Court as to Counts One and Three, and as to Counts Two and 24
Six, that you are agreeing to the entry of a money judgment 25

Page 29 - Page 32 (8)

Page 31

Page 32

With regard to the conspiracy charged in Count One and
also charged in Counts Three, Four and Five, I worked with
Bernard L. Madoff Investment Securities' employees to deceive

others. I created fake DTC reports in New York City.
I created these documents knowingly and willingly. I
knew that these documents were fake because they were created
by me and not by the DTC. I created them to match documents
given to me by other BLMIS employees. My understanding was
that the fake DTC reports that were prepared were being given

to the auditors to mislead them.
Also as part of the conspiracy charged in Count One
and the charges in Count Three, Four and Five, it was my job to
prepare the BLMIS payroll documents and records. As part of my
job from at least 1996 in New York City, I created fake, false
payroll records and also submitted to the Department of Labor

inaccurate form 5500s. These forms falsely showed that a
number of people were employees of BLMIS when in fact I knew

they were not working for BLMIS.
For instance, sometime in 2008, Daniel Bonventre
instructed me to include one of his sons as an employee when I

knew he wasn't working there, and I agreed to do it; and I
created BLMIS payroll records to reflect that he worked there.

Further, beginning in 2007, in New York City, I
knowingly certified on the Form 5500 that there were people who

worked at BLMIS when in fact they did not. I also understood

SOUTHERN DISTRICT REPORTERS

Min-U-Script®

UNITED STATES OF AMERICA,
ERIC S. LIPKIN,
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June 6, 2011
Page 33 166dlipp
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that the Form 5500 contained a certification that all

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of Labor using Federal Express.
Counts Two and Six.
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Regarding Count Two, conspiracy to commit bank fraud,
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and Count Six, bank fraud, I was attempting to get a
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construction loan. In order to ensure I received the loan, I 8
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went to Frank DiPiscali to create a new BLMIS account in my
name that falsely said my account value was greater than it 10
was. I knew I could ask Frank DiPiscali to do this for me 11
because I knew it had been done previously for other BLMIS 12
employees.
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That account statement was created in New York at 14
BLMIS in November of 2008. Once I got the fake statement, I 15
sent it from New York City to a bank in Florida. I knew that 16
the account did not have the money in it that the statement 17
said it did and that it was wrong to mislead the lender to get 18
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the loan.
THE COURT: Would you remain standing. I have a few 20
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more questions for you.
You indicated that the fake DTC reports that you were 22
making were going to be given to the auditors in order to 23
deceive auditors. What did you understand the auditors were 24
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going to do with that information?

information on the form was accurate, and I signed it knowing
it was not accurate and then I submitted it to the Department

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v.

illegal?
THE DEFENDANT: Yes.
THE COURT: Mr. Moore, does the government wish any
further factual matters to be addressed in the plea allocution?

MR. MOORE: No. Thank you, your Honor.
THE COURT: Mr. Moore, would you please summarize the
government's evidence against Mr. Lipkin.
And, Mr. Lipkin, you can be seated, please.
MR. MOORE: Certainly, your Honor.
Had this case proceeded to trial, the government would

have proven, through testimony and evidence, beyond a
reasonable doubt the facts set forth in the Superseding
Information. Specifically, the government would have proven

with respect to Counts One, Three, Four and Five of the
Information a conspiracy to falsify books and records of a
broker-dealer and investment advisor and conspiracy to falsify
statements to facilitate a theft concerning ERISA, along with
the corresponding substantive charges: That Mr. Lipkin was
employed by BLMIS from in or about the mid-1980s through at
least on or about December 11, 2008, when BLMIS collapsed. In

or about 1996, Mr. Lipkin began working with his
co-conspirators in falsifying the books and records at BLMIS.

For instance, Mr. Lipkin, working with other
co-conspirators, created fraudulent account statements
detailing the account values of several investment advisory, or

Page 34 166dlipp
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DEFENDANT: It was to confirm positions at several 1 "IA",

THE
investment advisory accounts that we were reporting at.
THE COURT: And to what persons or entities were the
reports going to be made?
THE DEFENDANT: The SEC.
THE COURT: And you use the term "DTC," what does that
mean?
THE DEFENDANT: Depository Trust Company.
THE COURT: You used the term "5500" reports. What
are those?
THE DEFENDANT: Those are reports that certify monies
that are in a 401(k) plan.
THE COURT: And is the 401(k) plan a type of plan

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that's governed by the Employee Retirement Income Security Act? 14
THE DEFENDANT: It is.
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THE COURT: And to what agency, if any, of the 16
government are the 5500s submitted?
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THE DEFENDANT: The federal government, the IRS -- the 18
Department of Labor. I'm sorry.
19
THE COURT: I notice that you were looking at some 20
notes as you were speaking. Do those notes accurately reflect 21
truthful information and actions that you yourself took? 22
THE DEFENDANT: Yes, they do.
23
THE COURT: When you did these things that you have 24
described, did know that what you were doing was wrong and 25

Min-U-Script®

Page 35

Page 36

accounts at BLMIS. In furtherance of this fraud, your
Honor, Mr. Lipkin prepared letters and statements setting out
fake holdings purportedly held in multiple BLMIS IA accounts.
Further, in connection with reviews by the SEC and a

European accounting firm, Mr. Lipkin and other co-conspirators
created false and fraudulent BLMIS books and records as well as

false documents purportedly obtained from third parties in the
ordinary course of business at BLMIS. For example, Mr. Lipkin

and others created fake reports purportedly obtained by the
Depository Trust Company, or "DTC." These fake DTC reports
purported to show the securities holdings of BLMIS IA clients,

which in fact did not exist. Mr. Lipkin knew the purpose of

these fake DTC reports was to mislead the auditors.
During his tenure at BLMIS, and at the direction of
other co-conspirators, Mr. Lipkin also created false BLMIS
books and records reflecting individuals who did not actually
work at BLMIS. Mr. Lipkin was responsible for processing the

payroll and administering the 401(k) plans at BLMIS, and in
this capacity, your Honor, Mr. Lipkin was responsible for
preparing and maintaining internal BLMIS payroll records. He
was aware that there were individuals on BLMIS's payroll who

did not work for the firm but who nevertheless received
salaries and benefits. Mr. Lipkin created false internal BLMIS

payroll records reflecting that these individuals worked at
BLMIS. Furthermore, he included a number of fake employees in

SOUTHERN DISTRICT REPORTERS

(9) Page 33 - Page 36

UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
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the total number of employees that he reported to the
Department of Labor.
With respect to Counts Two and Six, conspiracy to
commit bank fraud and bank fraud, your Honor, the government

would prove that in or about 2008, Mr. Lipkin prepared and
submitted a loan application to a lending institution insured
by the Federal Deposit Insurance Corporation, or "FDIC," which

purported to represent accurately his personal and financial

information. However, he fraudulently improved his
creditworthiness by falsifying his personal and financial
information in a manner that was material to the lending
institution in making its lending decision. Specifically,
Mr. Lipkin, working with others, prepared and submitted false

and misleading information concerning his assets.
THE COURT: Mr. Moore, before you sit down, or I will
ask you to stand back up, would you just map for me a little

more precisely the nature of the violation of the
ERISA-specific charge, which we've referred to as facilitating

false statements to facilitate a theft concerning ERISA, the
elements had been recited, and the allocution here deals with
the falsification of plan financial reports by including people

who were not employees.
Is there also a specific theft element? Is there a
necessity to show intent that plan assets were actually to be
given to someone who wasn't entitled to them? I just don't

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Page 39

concerning ERISA.
THE COURT: Mr. Lipkin, is Mr. Moore's summary of the
nature and significance in terms of entitlement to benefits
under an ERISA government plan accurate with respect to your

own activities in falsifying the 401(k) plan records?
THE DEFENDANT: It is, your Honor.
THE COURT: Mr. Lipkin, would you please stand again.
Mr. Lipkin, how do you now plead to the charge against
you in Count One of the third Superseding Information, not

guilty or guilty?
THE DEFENDANT: Guilty.
THE COURT: How do you now plead to the charge against
you in Count Two of the third Superseding Information, not

guilty or guilty?
THE DEFENDANT: Guilty.
THE COURT: How do you now plead to the charge against
you in Count Three of the third Superseding Information, not

guilty or guilty?
THE DEFENDANT: Guilty.
THE COURT: How do you now plead to the charge against
you in Count Four of the third Superseding Information, not

guilty or guilty?
THE DEFENDANT: Guilty.
THE COURT: How do you now plead to the charge against
you in Count Five of the third Superseding Information, not

Page 38 166dlipp
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Page 40

1 guilty or guilty?
2
THE DEFENDANT: Guilty.
3
THE COURT: And how do you now plead to the charge
an essential element of the crime, but we have alleged that and
4 against you in Count Six of the third Superseding Information,
I believe defendant has admitted to that nevertheless.
5 not guilty or guilty?
It is our understanding -- and we would prove this 6
THE DEFENDANT: Guilty.
beyond a reasonable doubt should this case go to trial -- that
7
THE COURT: Are you pleading guilty to each of these
Mr. Lipkin submitted the Form 5500, which is a reporting form
8 charges because you are in fact guilty of the conduct charged
that goes to the Department of Labor, which essentially lists
9 in each count?
the number of employees at the employer's institution. In this 10
THE DEFENDANT: I am.
case, Mr. Lipkin inflated that number, therefore misreporting 11
THE COURT: Are you pleading guilty voluntarily and of
the number of employees who were working at BLMIS, when he in 12 your own free will?
fact knew that there were fewer employees working at that 13
THE DEFENDANT: I am.
institution. As a result of doing so, he also put them on the 14
THE COURT: Mr. Filan, would you please show
internal payroll records at BLMIS, thus giving those employees 15 Mr. Lipkin Court Exhibit 1, the advice of rights form.
who in fact never worked at BLMIS 401(k) plans and other 16
Mr. Lipkin, have you signed this form?
salaries and benefits.
17
THE DEFENDANT: I have.
Can you hold on one second, your Honor?
18
THE COURT: Did you read it before you signed it?
(Pause)
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THE DEFENDANT: I did.
Right. Entitling them to benefits provided under the 20
THE COURT: Did you discuss it with your attorney
Social Security Administration as well as under a 401(k) plan, 21 before you signed it?
your Honor. As a result of that, your Honor, the Form 5500 22
THE DEFENDANT: We did.
that goes to the Department of Labor does concern ERISA, and, 23
THE COURT: Did you understand it before you signed
therefore, we believe Mr. Lipkin has met all the three elements 24 it?
for Count Five, falsifying statements to facilitate a theft 25
THE DEFENDANT: I did.

understand the nexus between the theft concept and the false

statements to my satisfaction.
MR. MOORE: Sure. Your Honor, I don't believe that is

Page 37 - Page 40 (10)

SOUTHERN DISTRICT REPORTERS

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THE COURT: Mr. Filan, did you also review and sign
Court Exhibit 1?
THE DEFENDANT: I did, your Honor.
THE COURT: Mr. Filan, are there any other questions
that you believe I should ask Mr. Lipkin in connection with

this plea?
MR. FILAN: No, your Honor.
THE COURT: Mr. Moore, are there any other questions
that you believe I should ask Mr. Lipkin in connection with

this plea?
MR. MOORE: No. Thank you, your Honor.
THE COURT: And are there any victims who wish to
speak in connection with this matter?
(Pause)
I note that no one has raised their hand.
Mr. Lipkin, you have acknowledged that you are guilty

as charged in the Information. I find that you know your

rights and that you are waiving them voluntarily.
Because your plea is entered knowingly and voluntarily
and is supported by an independent basis in fact containing

each of the essential elements of each of the offenses, I
accept your guilty plea, and I adjudge you guilty of the
offenses charged in Counts One, Two, Three, Four, Five and Six

of the third Superseding Information in this case, which is

numbered 10 Criminal 228.

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MR. MOORE: We will, your Honor.
THE COURT: Thank you.
When it is time for sentencing, counsel, I just wish
to ask and to remind you to be prompt in getting any objections

or additional information to Probation after the draft report

is disclosed, and any 5K1.1 letter or letter indicating an
intention to make a motion pursuant to 5K1.1 must be prepared
and submitted to the Court and the Probation Department before

the probation report is completed so that I can have the
benefit of the Probation Department's thinking in that regard

as well.
Sentencing submissions are governed by my sentencing

submission procedures, which are available on the court's

website and also here in hard copy in the courtroom.
Mr. Lipkin, the Probation Office will be preparing a
presentence report at some point to assist me in sentencing
you. You will be interviewed by the Probation Office. It is
important that the information that you give to the probation
officer be truthful and accurate. The report is important in
my decision as to what your sentence will be. You and your
attorney have a right and will have an opportunity to examine
the report, to challenge or comment on it, and to speak on your

behalf before sentencing.
Failing to be truthful with the Probation Office and
the Court may have an adverse effect on your sentence and may

Page 42 166dlipp
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You can be seated now. Thank you.
THE DEFENDANT: Thank you.
THE COURT: Mr. Filan, do you wish to be present for
any interview of Mr. Lipkin in connection with the preparation

of the presentence report?
MR. FILAN: I do, your Honor.
THE COURT: I will make that direction.
MR. FILAN: Thank you.
THE COURT: Mr. Moore, what is the parties' request
with respect to the setting of a sentencing date or a control

date?
MR. MOORE: Your Honor, at this time, we request that
we have six months for a sentencing control date.
THE COURT: And that a presentence report not be
ordered at this point?
MR. MOORE: That is correct, your Honor.
THE COURT: Ms. Ng, may we have a control date six
months out?
THE CLERK: Thursday, December 15, 2011, at 11 a.m.
THE COURT: The sentencing control date is set for
December 15, 2011, at 11 in the morning.
In advance of that date, Mr. Moore, will the
government inform the Court as to whether it is appropriate to

commence the preparation of the presentence report or to

further extend the control date?

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Page 44

subject you to prosecution.
Do you understand that?
THE DEFENDANT: I do.
THE COURT: Thank you.
Now, give me just one moment here.
(Pause)
Section 3143 of Title 18 provides that the Court is to
order a person who has been found guilty of an offense and who

is awaiting sentencing as a general matter to be detained
unless the judicial officer finds by clear and convincing
evidence that the person is not likely to flee or pose a danger
to the safety of any other person or the community if released.

Do the parties have a proposal with respect to
detention or release, and would the government set forth its

position as to the 3143 factors?
MR. MOORE: Yes, your Honor.

In light of Mr. Lipkin's

cooperation and his full disclosure of his financial assets,
his dealings at BLMIS, we are confident that he will be
following the rules as set in our proposed bail package that we

would like to present to the Court; namely, that his bail be
secured by a $2.5 million personal recognizance bond, secured

by $800,000 in cash or property.
THE COURT: And that would be property other than the
residential property that has been mentioned in connection with

the --

SOUTHERN DISTRICT REPORTERS

(11) Page 41 - Page 44

UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
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MR. MOORE: Absolutely, your Honor.
We also request that he be subject to strict pretrial
supervision; that his travel be restricted to the Southern and
Eastern Districts of New York, the District of New Jersey,
where he resides, and the District of Connecticut, where his

attorney practice.
Your Honor, we also request that he surrender all of
his travel documents and make new no travel applications.
Your Honor, we would request that these conditions be

met no later than this Friday.
THE COURT: And have you had sufficient dealings up to
now with Mr. Lipkin to have a view as to his reliability in
keeping appointments, his ability to be trusted at his word in

such relevant matters?
MR. MOORE: We have, your Honor, as well as the
agency, the FBI, has been working with him.
In addition, your Honor, to ensure our confidence in
Mr. Lipkin, we have already interviewed a number of cosigners

that have volunteered to serve as suriters for his bond.
Specifically, we've interviewed seven cosigners that he has
proposed, and at this time we are prepared to approve all of

them.
THE COURT: And is there anything that you wish to say
to me with respect to community or family ties and the
significance of those matters in terms of risk of flight?

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MR. MOORE:

truthful disclosure about his own financial assets and the

whereabouts of those assets.
THE COURT: Given the termination of operations of
BLMIS, does the government have a view as to potential danger

to the community? Is that an issue here?
MR. MOORE: We do not believe it is an issue in this
case, your Honor. No.
THE COURT: And I understand that Mr. Lipkin is
recently unemployed. What is the government's position as to

the significance of that status with respect to risk of flight?
MR. MOORE: Your Honor, Mr. Lipkin, from our
understanding, will be assisting his wife with the children.
His wife is a full-time employee and is fully employed. And we

believe, in light of those conditions, your Honor, he is not a

risk of flight, particularly if, as we have requested, the
conditions are assigned for strict pretrial supervision and the
security that he is willing to post, including the $800,000 of

cash which is coming from close family members of the
defendant. As well, your Honor, a number of the cosigners we
do believe have a significant moral suasion over the defendant

in light of their close relationship to him.
THE COURT: Thank you.
Officer Ramesar, I've reviewed your report, for which

I thank you.
MS. RAMESAR: You are welcome.

Page 46 166dlipp
PLEA
Yes, your Honor, which was a factor in our
1

determination. Mr. Lipkin is a long-time resident of the New
York/New Jersey area. He resides in New Jersey with his wife
and children along with several other family members, your
Honor. And as a result we are satisfied that he is not a risk
of flight, that he does not pose a danger to the community, so
long as the conditions that we had proposed are also assigned

with his release.
THE COURT: Are you confident of your assessment in
terms of the potential availability of assets to facilitate
flight?
MR. MOORE: Your Honor, as a part of this process, and
one of the reasons why we have expressed some confidence in

Mr. Lipkin, is that he has fully disclosed his assets to us.
He has filled out financial affidavits with our office fully
disclosing the whereabouts of all of his funds. And I believe,

as Mr. Filan will attest, he has also agreed to allow us to

immediately start forfeiting those proceeds.
THE COURT: And you and your colleagues or
investigators have traced monies that to your knowledge went
from BLMIS to Mr. Lipkin and have mapped his disclosures

against known assets?
MR. MOORE: That's correct, your Honor, which also
proves some confidence in Mr. Lipkin, that our own independent

evaluation matched up with what proved to be Mr. Lipkin's

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Page 48

THE COURT: Is there anything in particular or in

addition to or different from what Mr. Moore has argued that

you wish to bring to my attention at this point?
MS. RAMESAR: No, your Honor.
THE COURT: Thank you.
Mr. Filan, did you wish to be heard?
MR. FILAN: Just to say, your Honor, that we have
Mr. Lipkin's passport, which we will surrender today to
Pretrial Services, as the government requests. And we also
have two cosigners here with us today, who will execute the
appearance bond today before they leave the courthouse to begin

that process.
And we urge the Court to release Mr. Lipkin for the
reasons that Mr. Moore covered. I have really nothing further

to add to that.
THE COURT: Thank you.
MR. FILAN: Thank you, your Honor.
THE COURT: Mr. Moore, the summary of the proposed
conditions that you've provided deals with the surrender of
Mr. Lipkin's travel documents. Is there a reason why there is

no provision for the surrender of the travel documents of

immediate family members?
MR. MOORE: Your Honor, we have no objection to the
wife keeping her passport. In fact, it is our understanding

that she will be taking herself and her children to a

SOUTHERN DISTRICT REPORTERS

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UNITED STATES OF AMERICA,
ERIC S. LIPKIN,
166dlipp
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June 6, 2011
Page 49 166dlipp
PLEA

destination this summer.
However, if the Court feels that she should surrender

her travel passports, we would have no objection to that
condition being added.
THE COURT: It seems to me prudent to do that, given
the magnitude of the exposure.
So I will direct that the travel documents of the wife
and children also be surrendered without prejudice to specific
application, on notice, for return in connection with specific
travel approved by the Pretrial Services Department to which

there is no other objection. If there is an objection, I will

hear it.
MR. MOORE: Thank you, your Honor.
THE COURT: Mr. Filan.
MR. FILAN: That is fine, your Honor. Thank you.
THE COURT: Thank you.
Having carefully considered all that I have heard here

today, including the admissions of criminal activity, the
result of the investigation of Pretrial Services, the
government's extensive account of its activities and evaluation

with respect to risk of flight and potential for danger to the
community presented by Mr. Lipkin, I find that there is clear

and convincing evidence that with the imposition of the
proposed conditions Mr. Lipkin is not likely to flee or pose a
danger to the safety of any other person or the community.

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v.
Page 51

1
(Pause)
2
THE COURT: Now, Mr. Moore and Ms. Baroni, can you
3 shepherd things through the Magistrate Clerk's office here, or
4 whatever section of the Clerk's Office -5
MR. MOORE: We will, your Honor. Thank you.
6
THE COURT: And, also, Mr. Filan and Mr. Lipkin will
7 need to go over to the Probation Department as well to get
8 paper work set up and get any specifics as to what needs to be
9 done there today that will be carried out.
10
MR. FILAN: Thank you, your Honor.
11
THE COURT: Thank you. Is there anything further that
12 we need to take up together this afternoon?
13
MR. MOORE: Can you give us one moment, your Honor?
14
THE COURT: Yes.
15
MR. MOORE: Nothing further on the government's part.
16
Thank you, your Honor.
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MR. FILAN: Nothing from the defendant, your Honor.
18
THE COURT: All right. Thank you. We are adjourned.
19
THE DEFENDANT: Thank you, your Honor.
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THE CLERK: All rise.
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Page 50

Accordingly, I will grant him release on the
conditions that have been proposed, with the modification that

we just discussed concerning the surrender of family travel

documents.
I am now going to prepare a bail disposition sheet
enumerating these conditions, and then I will distribute that
in draft to the parties so that we can be sure that I've gotten
everything correct. So bear with me as I type this up, please.

(Pause)
What I've written is this: "$2.5 million PRB secured
by $800,000 cash and property, and 7 FRPs. Travel restricted
to DNJ, D Conn, E.D.N.Y. and S.D.N.Y. All travel documents of

Defendant, wife and children to be surrendered, with no new
applications (without prejudice to application for return of
documents of wife and children for particular preauthorized
travel). Strict pretrial supervision. All conditions must be

met by 4:00 p.m. on June 10, 2011."
Does that cover everything accurately?
MR. MOORE: That is our understanding. Thank you,
your Honor.
MR. FILAN: Yes, your Honor. Thank you.
THE COURT: I will fix one typo and then I will sign.
How many copies are needed?
THE CLERK: Six.
THE COURT: OK.

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SOUTHERN DISTRICT REPORTERS

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UNITED STATES OF AMERICA,
ERIC S. LIPKIN,

$
$1 (1)
22:7
$1.4 (1)
31:1
$100 (6)
20:9,19;21:4,14,24;
22:9
$143.2 (1)
25:19
$2.5 (2)
44:21;50:10
$250,000 (4)
20:7,17;21:12,22
$5 (1)
21:2
$600 (1)
22:20
$7 (1)
22:16
$700,000 (1)
25:20
$800,000 (3)
44:22;47:17;50:11

1
1 (5)
4:17,22;26:8;40:15;
41:2
10 (4)
4:13;14:22;41:25;
50:17
1027 (2)
15:23;17:1
11 (3)
35:20;42:19,21
12 (1)
10:23
1344 (2)
16:5;17:6
15 (6)
15:16,19;16:11,18;
42:19,21
17 (4)
15:17,20;16:12,19
18 (10)
15:15,22;16:3,5,13,20;
17:1,6;24:11;44:7
1996 (2)
32:14;35:21

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15:23;16:14,21;17:1,6
20 (1)
21:1
2006 (1)
27:19
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v.
June 6, 2011

27:19;32:23
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27:19;32:19;33:15;
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27:20
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42:19,21;50:17
228 (3)
4:13;14:22;41:25
24 (1)
8:5
240.17a-3 (2)
15:18;16:13
275.204-2 (2)
15:21;16:20

3
3 (1)
30:19
30 (1)
22:6
3143 (2)
44:7,15
3553a (1)
24:12
37 (2)
2:25;7:7
371 (2)
15:14;16:4

4
4:00 (1)
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50:11
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78ff (2)
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78qa (2)
15:17;16:12

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additional (2)
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address (1)
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addressed (2)
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adjourned (1)
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adjudication (1)
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admitted (1)
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accounting (1)
admitting (1)
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accounts (4)
advance (1)
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adverse (2)
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advice (4)
accurately (4)
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26:22;34:21;37:8;
advisor (5)
50:18
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acknowledge (1)
35:16
12:23
advisory (2)
acknowledged (1)
34:2;35:25
41:16
affidavits (1)
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46:15
15:25;18:4;34:14
afford (3)
acted (2)
3:23;4:2;11:4
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afternoon (1)
actions (2)
51:12
31:24;34:22
again (2)
activities (3)
2:15;39:7
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against (17)
activity (1)
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49:18
15:3;30:12;31:1,25;
actually (2)
35:7;39:8,12,16,20,24;
36:16;37:24
40:4;46:22
add (1)
age (1)
48:15
7:7
added (1)
agency (3)
49:4
28:2;34:16;45:16
addicted (1)
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2:9,9
addiction (2)
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10:23
agreed (2)
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agreeing (1)
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agreement (24)
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22,23;27:2,7,8,17,20,24;

28:5,9,13;29:14,21,25;
30:4,8,14,20,20;31:10
aided (2)
18:16;19:1
alcohol (3)
7:25;8:3,6
allegation (3)
25:14,23;26:3
alleged (5)
18:10,23;19:9,16;38:4
allocution (3)
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allowed (1)
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along (3)
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amended (1)
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America (1)
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amount (2)
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amounts (1)
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announcement (1)
5:12
apologize (1)
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appeal (1)
11:24
appearance (2)
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applicable (3)
24:9;27:14,22
application (4)
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applications (2)
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appoint (1)
3:23
appointments (1)
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appropriate (2)
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approve (1)
45:21
approved (1)
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approximately (2)
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UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
argued (1)
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artifice (3)
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aspect (1)
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assert (1)
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assessment (8)
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assets (8)
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assigned (2)
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assist (1)
43:16
assistance (7)
28:11,21,22,25;29:1,2,
13
assisting (1)
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associates (1)
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assure (2)
3:12;6:7
attempted (3)
19:16,18;24:15
attempting (1)
33:7
attend (1)
5:18
attended (1)
2:15
attention (2)
5:7;48:3
attest (1)
46:17
attorney (36)
3:22,23,24;6:15;9:3,9,
13,16;10:7;11:4,4,9,10;
13:9,21;15:1;24:4,14,19;
26:17,24;27:12;28:1,3,7,
10,14;29:5,12,15,19;
30:1,9;40:20;43:21;45:6
Attorney's (3)
2:5;5:12;8:15
auditors (5)
32:10;33:23,24,24;
36:13
authorities (1)
3:5
authority (1)
28:6
availability (1)
46:10
available (2)
5:24;43:13
awaiting (1)
44:9
argued - considered (2)

aware (3)
5:20,23;36:21

bound (1)
24:21
bring (2)
B
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broker (1)
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back (1)
broker-dealer (4)
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15:19;16:11;18:7;
bail (3)
35:16
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bank (13)
28:1
17:4,5;19:13,17,19,23,
23;25:23;33:6,7,16;37:4, business (1)
36:8
4
Baroni (3)
C
2:4,8;51:2
based (1)
11:20
calculate (1)
basis (2)
24:8
call (2)
9:19;41:20
2:1;5:16
bear (1)
50:8
called (1)
became (1)
13:8
can (15)
17:25
3:6;5:5;7:5;12:25;
began (1)
35:21
15:6;23:4,7;24:25;35:8;
begin (1)
38:18;42:1;43:9;50:7;
51:2,13
48:11
capacity (1)
beginning (1)
36:19
32:23
behalf (3)
care (1)
7:21
2:11;11:11;43:23
carefully (2)
benefit (2)
10:5;49:17
31:4;43:10
benefits (4)
carried (1)
51:9
36:23;38:17,20;39:3
case (11)
Bernard (2)
2:1;3:22;9:8;14:5,12;
18:11;32:3
beyond (9)
31:23;35:10;38:7,11;
41:24;47:7
10:18;17:10,19;18:8,
22;19:8,14;35:11;38:7 cash (3)
44:22;47:18;50:11
billion (1)
25:19
certain (8)
bind (1)
3:1;5:4;10:3;18:13,25;
25:20;31:3,4
28:6
Certainly (2)
BLMIS (34)
18:12,13,23,24;32:8,
17:16;35:9
13,17,18,22,25;33:9,12, certification (1)
33:1
15;35:19,20,22;36:1,3,6,
8,11,14,15,17,18,20,23, certified (1)
25;38:12,15,16;44:18;
32:24
46:21;47:4
certify (1)
34:11
BLMIS' (2)
18:16;19:2
CFR (1)
15:21
BLMIS's (1)
36:21
challenge (1)
43:22
bond (3)
change (1)
44:21;45:19;48:11
12:25
Bonventre (1)
32:19
charge (8)
13:11;37:18;39:8,12,
books (10)
16,20,24;40:3
15:18,21;16:10,17;
18:7,21;35:15,22;36:6, charged (20)
16
12:23;13:10;17:21;

18:1;20:5,15,25;21:10, community (7)
3:14;44:12;45:24;
31:20;32:1,2,11;40:8;
46:6;47:5;49:22,25
41:17,23
Company (2)
charges (19)
34:8;36:10
9:9,11;10:10;13:7;
competence (1)
14:4,6;15:3,14;16:3,10,
8:18
17,24;17:4,10,15;31:25; competent (2)
32:12;35:18;40:8
9:21;10:18
chartered (1)
complete (1)
19:24
26:23
children (7)
completed (1)
31:5;46:4;47:12;
43:9
48:25;49:8;50:13,15
completeness (1)
circumstances (1)
28:23
27:13
complied (1)
citizen (2)
28:12
3:19;7:17
comply (1)
City (4)
23:6
32:4,14,23;33:16
composed (1)
civil (1)
10:22
23:21
concept (1)
claim (3)
38:1
12:13;30:15,17
concern (1)
clear (3)
38:23
8:8;44:10;49:22
concerning (8)
CLERK (5)
15:24;16:25;19:7;
2:1;6:19;42:19;50:24;
35:17;37:14,19;39:1;
51:20
50:3
Clerk's (2)
condition (1)
51:3,4
49:4
clients (1)
conditionally (1)
36:11
3:11
close (2)
conditions (15)
47:18,21
3:12,16;5:14;23:3,4,7;
co-conspirators (4)
45:9;46:7;47:14,16;
35:22,24;36:5,15
48:19;49:24;50:2,6,16
Code (15)
conduct (9)
15:15,16,17,20,23;
20:10,20;21:5,15,25;
16:4,12,12,14,19,19,21;
22:10,19;31:23;40:8
17:1,6;24:12
confidence (3)
collapsed (1)
45:17;46:13,24
35:20
confident (2)
colleagues (2)
44:18;46:9
2:4;46:19
confirm (1)
College (1)
34:1
7:10
confirming (1)
combined (2)
26:2
22:15;25:7
confusion (1)
coming (1)
26:5
47:18
Conn (1)
commence (1)
50:12
42:24
Connecticut (1)
comment (1)
45:5
43:22
connection (8)
commerce (1)
5:3;36:4;41:5,9,13;
19:5
42:4;44:24;49:9
commit (4)
consequences (2)
29:22;30:5;33:6;37:4
9:14;10:2
committed (1)
consider (3)
18:3
24:1,9;28:20
committing (1)
considered (1)
17:4
49:17
20;22:5,16;25:18;30:22;

SOUTHERN DISTRICT REPORTERS

Min-U-Script®

UNITED STATES OF AMERICA,
ERIC S. LIPKIN,
conspiracy (14)
15:16;16:5;17:17,18,
21,25;18:5,5;32:1,11;
33:6;35:15,16;37:3
conspirators (1)
18:2
conspiring (2)
15:19,22
constituting (2)
25:16;30:21
Constitution (3)
3:2;10:3,8
constitutional (2)
12:13;13:10
construction (1)
33:8
contained (1)
33:1
containing (1)
41:20
contains (1)
13:7
continue (1)
10:14
control (6)
19:19;42:10,13,17,20,
25
convicted (1)
11:24
convincing (2)
44:10;49:23
cooperate (1)
27:25
cooperation (3)
27:2;30:8;44:17
copies (1)
50:23
copy (2)
14:20;43:14
Corporation (2)
16:7;37:7
corresponding (1)
35:18
cosigners (4)
45:18,20;47:19;48:10
cost (1)
11:5
counsel (4)
2:11;4:2,8;43:3
Count (30)
15:13;16:2,9,16,23;
17:3;18:6,20;19:6,13;
20:6,16;21:1,11,21;22:6;
25:25;32:1,11,12;33:6,7;
38:25;39:9,13,17,21,25;

40:4,9
counts (14)
5:10;17:17,18;25:18,
19,21;30:23,24,24;32:2;

33:5;35:14;37:3;41:23
course (1)
36:8
COURT (208)
Min-U-Script®

v.
June 6, 2011

2:8,13,19,24;3:1,10,
13,19,21;4:1,4,7,10,16,
20,22,24;5:15,19,25;
6:17,21,24;7:5,9,11,14,
17,20,23;8:2,5,8,10,12,
15,17,23;9:2,8,13,16,19,
25;10:13,16,22;11:2,7,
13,18,23;12:2,5,8,12,16,
19,25;13:5,7,14,19,21,
24;14:2,8,11,15,17,20,
24;15:1,3,6,7,10;16:2,9,
16,23;17:3,8,13;19:25;
20:4,14,24;21:9,19;22:4,
14,23;23:19,25;24:1,4,7,
8,14,18,24,25;25:4,4,10,
13;26:1,7,11,14,16,19,
22;27:1,4,6,10,17,24;
28:5,9,15,19,20;29:4,6,8,

9,11,17,21;30:4,14,19,
24;31:7,9,12,15,18;
33:20;34:3,6,9,13,16,20,
24;35:3,6;37:15;39:2,7,

12,16,20,24;40:3,7,11,
14,15,18,20,23;41:1,2,4,

8,12;42:3,7,9,14,17,20,
23;43:2,8,25;44:4,7,20,
23;45:11,23;46:9,19;
47:3,8,22;48:1,5,13,16,
18;49:2,5,14,16;50:22,
25;51:2,6,11,14,18
courthouse (1)
48:11
courtroom (2)
5:3;43:14
court's (1)
43:13
cover (3)
6:8,9;50:18
covered (2)
27:2;48:14
Cr (1)
14:22
create (1)
33:9
created (12)
32:4,5,6,7,14,22;
33:14;35:24;36:6,9,15,
23
credit (2)
23:9,10
creditworthiness (1)
37:10
crime (12)
17:18;18:7;19:8,14;
20:5,15,25;21:10,20;
22:5;25:11;38:4
crimes (7)
22:15;25:17,24;29:22;
30:5,22;31:20
Criminal (11)
4:13;20:10,20;21:5,
15,25;22:10,19;30:12;
41:25;49:18

cross-examine (1)
11:9
currency (1)
31:2
custody (1)
19:19

D
danger (6)
28:25;44:11;46:6;
47:4;49:21,25
Daniel (1)
32:19
date (10)
5:5,14;27:18;42:10,
11,13,17,20,22,25
deal (1)
2:19
dealings (2)
44:18;45:11
deals (2)
37:20;48:19
deceive (2)
32:3;33:24
December (3)
35:20;42:19,21
decided (1)
11:19
decision (3)
11:20;37:12;43:20
DEFENDANT (152)
2:23,25;3:9,18,20,25;
4:3,6,9;6:16,20,23;7:4,8,
10,12,16,19,22;8:1,4,7,9,

11,14,16;9:7,12,15,18;
10:12,15,21;11:1,6,17,
22;12:1,4,7,11,15,18,24;
13:4,6,13,18,20,23;14:1,

7,10,14,16,19,23,25;
15:2,5,9;16:1,8,15,22;
17:2,7,12,24;18:3,16,18;

19:1,3,10,10,11,16,17,
21;20:3,13,23;21:8,18;
22:3,13,22;23:18,24;
24:3,6,13,17,23;25:3,9,
12;26:13,15,18,21,25;
27:3,5,9,16,23;28:4,8,
18;29:3,7,10,16,20;30:3,
13,18;31:6,11,21;34:1,5,
8,11,15,18,23;35:2;38:5;
39:6,11,15,19,23;40:2,6,
10,13,17,19,22,25;41:3;

42:2;44:3;47:19,20;
50:13;51:17,19
defense (2)
4:17;11:13
defenses (1)
9:10
defraud (2)
19:17,23
defrauding (1)
16:5

degree (1)
7:13
demeanor (1)
9:20
demonstrate (2)
19:8,15
denies (1)
29:9
Department (10)
25:1;32:15;33:3;
34:19;37:2;38:9,23;
43:8;49:10;51:7
Department's (1)
43:10
departures (1)
24:10
Deposit (2)
16:7;37:7
Depository (2)
34:8;36:10
deposits (1)
16:6
deprive (1)
23:21
deputy (1)
5:23
derived (2)
25:16;30:21
describe (1)
10:2
described (1)
34:25
describing (1)
10:6
designated (2)
28:2;30:9
desire (1)
4:7
desired (1)
11:11
destination (1)
49:1
detailed (1)
15:4
detailing (1)
35:25
detain (1)
3:14
detained (1)
44:9
detention (1)
44:14
determination (1)
46:2
determine (1)
25:1
determined (4)
24:25;29:23;30:6,23
determines (2)
28:10;29:12
determining (2)
24:2,7
different (3)

SOUTHERN DISTRICT REPORTERS

24:19,20;48:2
DiPiscali (2)
33:9,11
direct (1)
49:7
direction (2)
36:14;42:7
disclosed (2)
43:6;46:14
disclosing (1)
46:16
disclosure (2)
44:17;47:1
disclosures (1)
46:21
discretion (2)
25:5;29:6
discuss (3)
13:21;26:16;40:20
discussed (5)
9:8,13;15:1;24:4;50:3
disposition (1)
50:5
distribute (1)
50:6
district (4)
10:23;18:4;45:4,5
Districts (1)
45:4
DNJ (1)
50:12
doctor (1)
7:21
document (2)
13:7;19:12
documents (12)
32:5,6,7,13;36:7;45:8;
48:20,21;49:7;50:4,12,
15
done (2)
33:12;51:9
doubt (10)
8:18;10:18;17:10,20;
18:8,22;19:8,14;35:12;
38:7
down (1)
37:15
draft (2)
43:5;50:7
drawn (1)
11:20
drug (1)
7:25
drugs (2)
8:2,6
drunk (1)
8:6
DTC (8)
32:4,7,9;33:22;34:6;
36:10,10,13
due (1)
27:20
during (2)
(3) conspiracy - during

UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
37:18
fact (10)
35:17;37:19;38:23;39:1,
10:1;17:22;32:17,25;
E
36:12;38:13,16;40:8;
4
ERISA-specific (1)
41:20;48:24
Eastern (1)
37:18
factor (1)
45:4
46:1
essential (2)
Economics (1)
38:4;41:21
factors (4)
7:12
24:11;28:16,19;44:15
essentially (1)
EDNY (1)
38:9
facts (1)
50:12
35:12
establish (1)
effect (1)
17:19
factual (1)
43:25
estimate (2)
35:4
either (2)
failed (2)
24:15,16
3:10;8:17
European (1)
18:13,24
element (3)
Failing (1)
36:5
17:9;37:23;38:4
evaluation (3)
43:24
elements (6)
28:22;46:25;49:20
failure (2)
17:14,19;18:9;37:20;
18:17;19:2
Even (5)
38:24;41:21
3:4;24:18;27:10;29:4, fake (11)
else (2)
18
32:4,6,9,14;33:15,22;
24:15,20
36:3,9,10,13,25
evidence (9)
employed (2)
10:18;11:10,11;30:11, false (17)
35:19;47:13
7:1,3;16:24;19:10,11,
16;35:7,11;44:11;49:23
Employee (4)
12,20;29:23;30:6;32:14;
examine (1)
15:25;32:20;34:14;
36:6,7,15,23;37:13,19;
43:21
47:13
38:1
example (2)
employees (11)
23:11;36:8
falsely (3)
32:3,8,17;33:13;
7:1;32:16;33:10
36:25;37:1,22;38:10,12, execute (4)
falsification (1)
19:16,18,18;48:10
13,15
37:21
executed (1)
employer's (1)
falsify (2)
19:16
38:10
35:15,16
Exhibit (5)
enforcement (2)
falsifying (12)
4:17,22;26:8;40:15;
28:2;30:10
15:18,21,23;16:10,17;
41:2
engaged (1)
18:6,20;19:6;35:22;
exist (2)
19:21
37:10;38:25;39:5
3:16;36:12
English (1)
existed (1)
family (7)
7:15
17:22
29:1;31:22;45:24;
ensure (2)
46:4;47:18;48:22;50:3
expect (1)
33:8;45:17
far (1)
24:21
enter (11)
7:9
explain (3)
4:12;8:19;9:1,4,5,21;
3:1;10:7;17:13
FBI (2)
10:5;13:1,2;27:8,20
exposure (1)
2:6;45:16
entered (1)
49:6
FDIC (1)
41:19
Express (1)
37:7
entering (3)
Federal (11)
33:4
9:14;12:8,19
expressed (1)
15:17;16:7,12,20;
entire (1)
46:13
25:10;28:1,6;30:1;33:4;
26:23
34:18;37:7
extend (1)
entities (1)
federally (2)
42:25
34:3
extensive (1)
17:5;19:24
entitled (4)
49:20
feeling (1)
3:15;29:9,18;37:25
8:10
extent (1)
entitlement (1)
28:24
feels (1)
39:3
49:2
Entitling (1)
few (1)
F
38:20
33:20
entry (1)
fewer (1)
30:25
facilitate (7)
38:13
15:24;16:25;19:7;
enumerating (1)
Fidelity (1)
50:6
35:17;37:19;38:25;
31:5
46:10
Eric (3)
field (1)
2:2,23;6:23
facilitating (1)
18:5;36:14

Eastern - gain (4)

ERISA (9)
15:24;16:25;19:7,12;

7:11
forfeiture (3)
fifth (1)
25:14,23;26:2
19:4
form (12)
FILAN (41)
4:21;6:10;13:15;
2:10,10,13,18;4:4,8,
32:16,24;33:1,2;38:8,8,
10,15,19,23;8:16,17,21,
22;40:15,16
25;13:14;25:22;26:4,7, forms (1)
10;31:7,8,12,14,17;
32:16
40:14;41:1,4,7;42:3,6,8; forth (3)
46:17;48:6,7,17;49:14,
28:16;35:12;44:14
15;50:21;51:6,10,17
found (1)
file (3)
44:8
27:18;28:14;29:15
Four (8)
filed (1)
16:16;18:20;21:11;
29:19
32:2,12;35:14;39:21;
files (1)
41:23
29:5
Fourth (2)
filled (1)
18:18;19:3
46:15
Frank (2)
Finally (1)
33:9,11
19:13
fraud (8)
finance (1)
17:5;19:14;25:24;
7:13
33:6,7;36:1;37:4,4
financial (8)
fraudulent (3)
16:6;19:24;37:8,10,
19:20;35:24;36:6
21;44:17;46:15;47:1
fraudulently (1)
find (6)
37:9
3:11;9:20;10:24;
free (3)
15:10;41:17;49:22
11:5;27:12;40:12
finds (1)
Friday (1)
44:10
45:10
fine (8)
friends (1)
20:6,16;21:1,11,21;
31:22
22:6,16;49:15
FRPs (1)
firearm (1)
50:11
23:23
full (12)
firm (2)
2:22;5:3;6:21;20:9,19;
36:5,22
21:4,14,24;22:9,18;
first (8)
23:16;44:17
2:17,20;17:21;18:10,
full-time (1)
23;19:9,15;31:21
47:13
Five (15)
fully (13)
16:23;19:6;20:6,16;
9:8,21;10:1,7;13:3;
21:11,21,21;22:11,21;
24:18;26:16,19;27:25;
32:2,12;35:14;38:25;
28:12;46:14,15;47:13
39:25;41:23
funds (1)
fix (1)
46:16
50:22
further (10)
flee (2)
5:18;29:22;30:5;
44:11;49:24
32:23;35:4;36:4;42:25;
flight (6)
48:14;51:11,15
45:25;46:6,11;47:10,
furtherance (2)
15;49:21
18:4;36:1
Florida (1)
Furthermore (1)
33:16
36:25
following (3)
future (2)
17:19;18:9;44:19
3:13,22
forced (1)
27:8
G
forfeit (3)
25:15;30:20;31:2
gain (6)
forfeiting (1)
20:7,17;21:2,12,22;
46:18
22:7

SOUTHERN DISTRICT REPORTERS

Min-U-Script®

UNITED STATES OF AMERICA,
ERIC S. LIPKIN,
gains (1)
22:17
gave (2)
29:23;30:6
general (1)
44:9
given (8)
23:9;30:10;32:8,9;
33:23;37:25;47:3;49:5
giving (5)
10:4;12:9,13;14:12;
38:15
goes (2)
38:9,23
Good (6)
2:3,8,10,13,13,15
governed (2)
34:14;43:12
government (30)
2:4;3:14;4:17;5:20;

v.
June 6, 2011

Hagarty (2)
2:6,9
hand (2)
6:19;41:15
happen (1)
5:14
happening (1)
6:12
hard (1)
43:14
hear (2)
11:8;49:12
heard (5)
5:17,21;6:2;48:6;
49:17
hearing (1)
3:15
hearings (1)
3:13
held (2)
10:17;14:3,4;17:8,14,19;
31:4;36:3
18:8,21;19:8,15;20:2; herself (1)
25:15;26:8,24;27:11;
48:25
34:17,18;35:3,10,13;
hold (2)
37:4;39:4;42:23;44:14;
23:22;38:18
47:4;48:9
holdings (2)
government's (7)
36:3,11
5:2;11:10;28:22;35:7; Honor (69)
47:9;49:20;51:15
2:3,10,18;4:15,19,23;
graduated (1)
5:6,13,22;8:20,22;17:16,
7:10
24;18:6,20;19:13,21;
grand (5)
25:22;26:4,10,13;31:8,
13:12;14:5,13,15;
14,21;35:5,9;36:2,19;
30:11
37:4;38:3,18,22,22;39:6;
grant (1)
41:3,7,11;42:6,12,16;
50:1
43:1;44:16;45:1,7,9,15,
greater (2)
17;46:1,5,12,23;47:7,11,
22:17;33:10
14,19;48:4,7,17,23;
greatest (6)
49:13,15;50:20,21;51:5,
20:7,17;21:2,12,22;
10,13,16,17,19
22:7
hospitalized (1)
Greg (1)
7:23
2:6
hours (1)
Guidelines (6)
8:5
24:1,5,10;25:6;28:15,
I
17
Guidelines' (1)
24:9
IA (3)
guilt (1)
36:1,3,11
12:23
illegal (1)
guilty (56)
35:1
4:12;6:6;9:4,6,10,14,
illness (1)
25;10:1,5,14,14,18,24;
7:24
12:9,17,20,22;13:1,5,8; immediate (1)
17:11;20:2;23:20,20;
48:22
24:21,22;27:8;29:18; immediately (1)
31:10,16,19;39:10,10,
46:18
11,14,14,15,18,18,19,22, important (3)
22,23;40:1,1,2,5,5,6,7,8,
6:11;43:18,19
11;41:16,22,22;44:8
impose (1)
27:12
H
imposed (3)
23:3;24:25;29:5
Min-U-Script®

imposition (1)
49:23
imprisonment (15)
20:6,12,16,22;21:1,7,
11,17,21;22:2,6,12,16,
21;25:7
improved (1)
37:9
inaccurate (1)
32:16
include (2)
28:20;32:20
included (1)
36:25
includes (2)
25:14;30:20
including (9)
7:24;9:9;25:18,20;
27:21;30:2;37:21;47:17;

49:18
Income (2)
15:25;34:14
incomplete (2)
29:23;30:6
incriminate (1)
12:21
independent (2)
41:20;46:24
indicated (3)
7:7;13:8;33:22
indicating (2)
5:16;43:6
indict (1)
14:6
indictment (15)
4:11;6:5;8:19;9:4,5,
22;13:10,11,15,17;14:3,

9,12,18;15:11
individuals (3)
36:16,21,24
inference (1)
11:19
inflated (1)
38:11
inform (1)
42:23
Information (43)
4:13;5:4,10;9:5;10:10;
13:9,11;14:4,21,21;15:4,
7,14;16:3,10,17,24;17:4,

29:1
innocent (2)
10:17,19
instance (2)
32:19;35:23
institution (6)
16:6;19:24;37:6,12;
38:10,14
instructed (1)
32:20
instrumentalities (1)
19:5
Insurance (2)
16:7;37:7
insured (4)
16:6;17:5;19:24;37:6
intend (1)
9:9
intended (1)
9:24
intent (2)
19:23;37:24
intention (1)
43:7
interest (2)
25:20;31:2
Internal (4)
27:21;36:20,23;38:15
interstate (1)
19:5
interview (1)
42:4
interviewed (3)
43:17;45:18,20
into (4)
25:5;27:8,20;28:21
Investigation (4)
28:1,11;29:13;49:19
investigators (1)
46:20
investment (9)
15:22;16:18;18:11,21,
24;32:3;34:2;35:16,25
Investments (1)
31:5
involved (2)
19:4,23
IRS (1)
34:18
issue (2)
47:5,6
issued (3)
5:7;13:9,12
issues (1)
26:3

21;22:23;25:14;28:23;
29:24;30:7;31:20;33:2,
25;34:22;35:13,15;37:9,
11,14;39:9,13,17,21,25;
40:4;41:17,24;43:5,18
informed (4)
4:10,11;9:3,21
J
injured (7)
20:10,20;21:5,15,25;
James (2)
22:10,19
2:10;8:16
injuries (1)
Jersey (4)
28:25
31:3;45:4;46:3,3
injury (1)
job (2)

SOUTHERN DISTRICT REPORTERS

32:12,14
judgment (1)
30:25
judicial (1)
44:10
Julian (1)
2:3
June (1)
50:17
jury (9)
10:9,22;13:12;14:5,
13,15;23:4,23;30:11
justice (1)
30:2

K
keep (4)
18:13,17,25;19:2
keeping (2)
45:13;48:24
kind (1)
23:23
kindly (1)
5:13
knew (9)
19:11;32:6,17,21;
33:11,12,16;36:12;38:13

knowing (2)
15:11;33:2
knowingly (8)
17:24;18:3,18;19:3,
22;32:5,24;41:19
knowledge (4)
8:21,23;30:2;46:20
known (2)
18:11;46:22

L
labeled (1)
4:13
Labor (6)
32:15;33:4;34:19;
37:2;38:9,23
language (1)
7:15
Last (1)
5:7
later (3)
7:2;26:3;45:10
law (3)
27:14;28:2;30:9
laws (3)
10:4,8;17:23
lawyer (1)
8:12
leading (1)
11:3
least (3)
18:3;32:14;35:20
leave (1)
48:11
(5) gains - leave

UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
left (2)
23:13;27:4
lender (1)
33:18
lending (3)
37:6,11,12
letter (4)
5:7,13;43:6,6
letters (1)
36:2
life (1)
18:5
light (4)
28:16;44:16;47:14,21
likely (2)
44:11;49:24
Lipkin (62)
2:2,11,14,21,23;4:11,
20;5:9;6:5,23,24;9:3;
13:15,17;15:13;20:1;
25:22;26:8,11;31:9,13,
18;35:7,8,18,21,23;36:2,
5,8,12,15,17,19,23;37:5,
13;38:8,11,24;39:2,7,8;
40:15,16;41:5,9,16;42:4;
43:15;45:12,18;46:2,14,
21,24;47:8,11;48:13;
49:22,24;51:6
Lipkin's (8)
2:17;8:18;9:19;15:10;
44:16;46:25;48:8,20
Lisa (1)
2:4
listen (1)
10:5
lists (1)
38:9
little (1)
37:16
lived (1)
23:13
loan (4)
33:8,8,19;37:6
local (1)
28:6
long (1)
46:7
long-time (1)
46:2
looking (1)
34:20
loss (6)
20:8,18;21:3,13,23;
22:8
losses (1)
22:17
loud (2)
15:7,8

M
Madoff (3)
5:12;18:11;32:3
left - overt (6)

Magistrate (1)
51:3
magnitude (1)
49:6
mails (1)
19:4
maintaining (1)
36:20
makes (1)
31:19
making (4)
7:3;16:24;33:23;37:12
mandatory (1)
22:20
manner (1)
37:11
many (2)
9:24;50:23
map (1)
37:16
mapped (1)
46:21
marked (2)
4:17,21
match (1)
32:7
matched (1)
46:25
material (1)
37:11
matter (3)
5:3;41:13;44:9
matters (7)
2:20;4:8;6:9;20:1;
35:4;45:14,25
Matthew (1)
2:5
maximum (7)
20:4,14,24;21:9,19;
22:4,14
maximums (1)
25:8
may (13)
6:8,9,14;7:2;9:10;
12:14;23:20;28:20;

38:24;45:10;50:17
mid-1980s (1)
35:19
might (3)
14:5,6;24:20
million (6)
21:2;22:7,16;31:1;
44:21;50:10
mind (2)
8:8;13:1
minor (1)
31:5
mislead (3)
32:10;33:18;36:13
misleading (3)
29:23;30:6;37:14
misreporting (1)
38:11
modification (1)
50:2
moment (2)
44:5;51:13
money (3)
19:19;30:25;33:17
monies (2)
34:11;46:20
monitoring (1)
23:2
months (2)
42:13,18
Moore (42)
2:3,3,8;4:25;5:1,6,22;
8:17,20;17:13,16;35:3,5,
6,9;37:15;38:3;41:8,11;

42:9,12,16,22;43:1;
44:16;45:1,15;46:1,12,
23;47:6,11;48:2,14,18,
23;49:13;50:19;51:2,5,
13,15
Moore's (1)
39:2
moral (1)
47:20
more (5)
6:8;9:24;10:7;33:21;
30:11,15;42:17;43:25,25
37:17
mean (1)
morning (8)
34:7
2:3,8,10,13,13,15;
means (3)
5:17;42:21
19:4,20;23:1
motion (6)
medicine (1)
28:14;29:5,9,15,19;
8:6
43:7
member (1)
multiple (1)
17:25
36:3
members (3)
must (11)
46:4;47:18;48:22
6:7;17:19;18:8,21;
mental (1)
19:8,15;24:1;27:18,25;
7:24
43:7;50:16
mentioned (1)
myself (1)
44:24
12:22
message (1)
5:18
N
met (3)

name (4)
2:22;6:21;8:15;33:10
namely (2)
5:9;44:20
names (1)
31:4
Natasha (1)
2:7
nature (3)
28:24;37:17;39:3
necessarily (1)
18:3
necessity (1)
37:24
need (4)
3:3,5;51:7,12
needed (1)
50:23
needs (1)
51:8
nevertheless (2)
36:22;38:5
New (14)
18:4;31:3;32:4,14,23;
33:9,14,16;45:4,4,8;
46:2,3;50:13
next (2)
2:12;7:5
nexus (1)
38:1
Ng (3)
5:23;6:17;42:17
note (2)
5:3;41:15
notes (2)
34:21,21
notice (2)
34:20;49:9
notification (1)
5:2
November (1)
33:15
number (11)
6:6;14:22;25:7;32:17;

observations (1)
9:20
obstruction (1)
30:2
obtain (2)
4:2;19:18
obtained (4)
25:17;30:22;36:7,9
occurring (1)
5:9
offense (18)
18:10,23;19:4,9,16;
20:7,8,17,18;21:3,4,12,
13,22,23;22:8,9;44:8
offenses (3)
22:18;41:21,23
offer (1)
11:11
office (9)
2:5;23:22;27:25;
43:15,17,24;46:15;51:3,

4
Officer (4)
2:9;43:19;44:10;47:23
OK (1)
50:25
old (1)
2:24
once (2)
6:9;33:15
one (28)
5:17,25;11:4;12:2,9;
15:13,16;17:17;18:2,3;
20:6;25:18,19,25;30:23,

24;32:1,11,20;35:14;
38:18;39:9;41:15,23;
44:5;46:13;50:22;51:13
only (1)
25:1
operations (1)
47:3
opportunity (1)
43:21
oppose (1)
36:25;37:1;38:10,11,12;
27:11
order (11)
45:18;47:19
5:4;10:24;12:22;
numbered (1)
15:12;17:18;18:7;19:7,
41:25
14;33:8,23;44:8
ordered (3)
O
5:13,13;42:15
ordinary (1)
oath (2)
36:8
6:7,18
others (3)
object (1)
32:4;36:9;37:13
11:10
otherwise (3)
objection (4)
18:11;29:24;30:7
48:23;49:3,11,11
out (9)
objections (1)
10:10;15:7,8;27:4,7;
43:4
36:2;42:18;46:15;51:9
obligated (1)
over (2)
29:15
47:20;51:7
obligation (2)
overt (1)
14:9;24:8

SOUTHERN DISTRICT REPORTERS

Min-U-Script®

UNITED STATES OF AMERICA,
ERIC S. LIPKIN,
18:4
owing (1)
27:21
own (5)
4:2;39:5;40:12;46:24;
47:1
owned (1)
19:19

P
package (1)
44:19
page (1)
30:19
paper (1)
51:8
part (5)
17:9;32:11,13;46:12;
51:15
participating (2)
15:15;16:4
particular (3)
14:4;48:1;50:15
particularly (1)
47:15
parties (3)
36:7;44:13;50:7
parties' (1)
42:9
passport (2)
48:8,24
passports (1)
49:3
past (2)
8:5;27:20
Paul (1)
2:6
Pause (8)
6:3;13:16;26:9;38:19;
41:14;44:6;50:9;51:1
pay (2)
27:20,20
payroll (8)
32:13,15,22;36:18,20,
21,24;38:15
penalties (1)
27:22
penalty (8)
20:5,15,25;21:10,20;
22:5,15,25
pending (2)
3:11,15
people (10)
10:23;20:8,18;21:3,
13,23;22:8;32:17,24;
37:21
perhaps (1)
5:5
perjury (2)
7:3;30:2
permitted (1)
31:16
Min-U-Script®

v.
June 6, 2011

person (5)
5:18;44:8,11,12;49:25
personal (3)
37:8,10;44:21
persons (8)
20:10,20;21:5,15,25;
22:10,19;34:3
physically (1)
8:10
pills (1)
8:6
plan (8)
34:12,13,13;37:21,24;
38:21;39:4,5
plans (2)
36:18;38:16
plea (29)
4:12,16;6:6,8;8:19;
9:1,4,6,14,21,23;10:2,5;

12:9,20;13:1,2;23:20;
24:21,22;27:2,15;29:9,
18;35:4;41:6,10,19,22
plead (18)
9:10,25;10:14,14;
12:17;13:5,8;17:11;
20:2;27:8;31:9,16;39:8,
12,16,20,24;40:3
pleading (3)
5:9;40:7,11
please (17)
2:21,22;5:1;6:14,17,
19,21;10:5;13:14;17:13;
26:7;31:18;35:6,8;39:7;
40:14;50:8
plus (28)
20:6,9,9,10,16,19,19,
20;21:1,4,4,6,11,14,14,
15,21,24,24,25;22:6,9,9,

11,16,18,20,20
pm (1)
50:17
point (5)
4:25;6:8;42:15;43:16;
48:3
policy (1)
25:6
portion (1)
7:5
pose (3)
44:11;46:6;49:24
position (3)
27:11;44:15;47:9
positions (1)
34:1
possess (1)
23:23
possible (10)
9:10;12:13;20:5,15,
25;21:10,20;22:5,15;
24:10
post (2)
5:11;47:17
posted (1)

5:5
post-release (1)
23:11
potential (4)
22:25;46:10;47:4;
49:21
practice (1)
45:6
PRB (1)
50:10
preauthorized (1)
50:15
precisely (1)
37:17
predict (1)
24:15
prediction (1)
24:16
prejudice (2)
49:8;50:14
preparation (2)
42:4,24
prepare (2)
32:13;50:5
prepared (6)
32:9;36:2;37:5,13;
43:7;45:21
prepares (1)
25:2
preparing (2)
36:20;43:15
presence (1)
3:13
present (4)
5:21;14:5;42:3;44:20
presented (2)
14:13;49:22
presentence (5)
25:2;42:5,14,24;43:16
presumed (1)
10:17
pretense (1)
19:20
Pretrial (7)
2:7;45:2;47:16;48:9;
49:10,19;50:16
prevail (1)
31:13
previously (1)
33:12
prior (1)
27:18
prison (6)
23:2,8,9,12,13,15
Probation (10)
25:1;43:5,8,9,10,15,
17,18,24;51:7
procedures (1)
43:13
proceed (2)
4:7;6:4
proceeded (1)
35:10

proceeding (2)
5:8;7:6
proceedings (2)
3:22;30:12
proceeds (3)
25:17;30:22;46:18
process (2)
46:12;48:12
processing (1)
36:17
promised (1)
6:25
promises (3)
14:17;19:21;27:6
prompt (2)
3:15;43:4
property (8)
25:16,21;30:21;31:3;
44:22,23,24;50:11
proposal (1)
44:13
proposed (6)
44:19;45:21;46:7;
48:18;49:24;50:2
prosecute (1)
14:3
prosecuted (1)
25:11
prosecuting (1)
28:6
prosecution (5)
7:2;28:12;29:13,25;
44:1
prove (13)
10:17,19;17:9,14,18;
18:7,8,22;19:7,14;20:2;
37:5;38:6
proved (1)
46:25
proven (2)
35:11,13
proves (1)
46:24
provide (1)
29:12
provided (5)
11:5;28:11,24;38:20;
48:19
provides (7)
27:18,25;28:10;29:22;
30:5,15;44:7
provision (4)
29:14,25;30:8;48:21
provisions (1)
25:5
prudent (1)
49:5
psychiatrist (1)
7:21
public (3)
5:8;10:9;23:22
purported (2)
36:11;37:8

SOUTHERN DISTRICT REPORTERS

purportedly (3)
36:3,7,9
purpose (1)
36:12
pursuant (4)
4:16;28:14;31:10;43:7
put (1)
38:14

R
raise (1)
6:19
raised (1)
41:15
Ramapo (1)
7:10
Ramesar (5)
2:7,9;47:23,25;48:4
range (2)
24:9,10
rather (1)
13:11
read (7)
7:14;13:19;14:24;
15:6,8;26:14;40:18
real (2)
25:20;31:3
really (1)
48:14
reason (6)
8:24,25;13:3;31:12,
15;48:20
reasonable (9)
10:18;17:10,20;18:8,
22;19:8,14;35:12;38:7
reasonably (1)
3:12
reasons (2)
46:13;48:14
received (5)
5:16,18;23:11;33:8;
36:22
recently (2)
7:20;47:9
recited (1)
37:20
recognizance (1)
44:21
record (3)
5:2;6:22;17:14
records (21)
15:18,21;16:11,18;
18:7,14,17,21,25;19:2;
32:13,15,22;35:15,22;
36:6,16,20,24;38:15;
39:5
referred (1)
37:18
reflect (3)
26:22;32:22;34:21
reflecting (2)
36:16,24
(7) owing - reflecting

UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
refuse (1)
13:1
regard (7)
17:17;18:6,20;19:6,
13;32:1;43:10
regarding (2)
25:23;33:6
registered (1)
18:12
Regulations (5)
15:18;16:13,20;18:15;
19:1
reimprisoned (1)
23:4
relate (1)
31:24
relating (1)
22:18
relationship (1)
47:21
release (18)
20:11,21;21:6,16;
22:1,11,21,24;23:1,6,8,
12,14,15;44:14;46:8;
48:13;50:1
released (3)
3:10;23:2;44:12
relevant (2)
22:17;45:14
reliability (2)
28:23;45:12
remain (2)
3:3;33:20
remainder (1)
23:8
remains (1)
29:6
remind (1)
43:4
report (10)
25:2;42:5,14,24;43:5,
9,16,19,22;47:23
reported (1)
37:1
reporting (2)
34:2;38:8
reports (10)
32:4,9;33:22;34:4,9,
11;36:9,10,13;37:21
represent (3)
3:24;4:4;37:8
representation (1)
9:17
representations (1)
19:20
represented (3)
3:21;8:12;11:3
request (5)
42:9,12;45:2,7,9
requested (2)
5:11;47:15
requesting (2)
5:8;28:15
refuse - States (8)

requests (1)
48:9
required (7)
10:17;11:12,14;18:14,
25;19:12;25:15
requiring (1)
5:4
resident (1)
46:2
residential (1)
44:24
resides (2)
45:5;46:3
respect (9)
17:5;35:14;37:3;39:4;
42:10;44:13;45:24;
47:10;49:21
responses (1)
9:19
responsible (2)
36:17,19
restitution (7)
20:9,19;21:4,14,24;
22:9,19
restricted (2)
45:3;50:11
result (14)
20:10,20;21:5,15,25;

rights (16)
2:20;3:1,8,24;4:21;

47:17
seems (1)
49:5
6:10;10:1,3,4;12:3,6,10,
13;23:21;40:15;41:18 selected (1)
10:23
rise (1)
sent (1)
51:20
risk (6)
33:16
sentence (16)
28:25;45:25;46:5;
47:10,15;49:21
23:10;24:2,8,16,19,24;
25:1,6,11;27:2,12,13;
rules (3)
18:14;19:1;44:19
28:15;29:5;43:20,25
Sentencing (16)
24:1,4,9,10,11;27:18;
S

25:18,21,24;30:23,25;
33:5,7;37:3;40:4;41:23;
42:13,17;50:24
six-count (1)
4:12
Social (1)
38:21
sole (1)
29:6
solely (1)
24:25
solemnly (1)
6:25
28:15;42:10,13,20;43:3, someone (1)
12,12,16,23;44:9
37:25
S3 (3)
serve (2)
sometime (1)
4:13;5:10;14:22
23:22;45:19
32:19
safety (3)
served (1)
sons (1)
3:13;44:12;49:25
23:9
32:20
salaries (2)
Service (1)
sorry (3)
36:23;38:17
27:21
9:1;31:23;34:19
satisfaction (1)
Services (4)
Southern (2)
38:2
2:7;48:9;49:10,19
18:4;45:3
satisfied (2)
serving (1)
speak (4)
9:16;46:5
25:10
6:14;7:14;41:13;43:22
satisfy (2)
set (10)
speaking (1)
9:25;12:22
10:10;23:3,7;27:7;
34:21
saying (1)
28:16;35:12;42:20;
Special (8)
10:6
22:10;23:10;25:17;29:1; scheme (3)
44:14,19;51:8
2:6;20:9,19;21:4,14,
setting (2)
24;22:9,20
30:22;38:14,22;46:5;
19:17,18,21
36:2;42:10
specific (5)
49:19
school (1)
seven (1)
19:22;25:5;37:23;
resulting (12)
7:9
45:20
49:8,9
20:7,8,17,18;21:2,3,
Schwartz (2)
12,13,22,23;22:7,8
several (3)
Specifically (3)
2:5,9
34:1;35:25;46:4
35:13;37:12;45:20
retained (2)
Scott (1)
sheet (4)
specifics (1)
4:4,8
6:23
5:23,24;6:1;50:5
51:8
Retirement (2)
SDNY (1)
shepherd (1)
specified (1)
15:25;34:14
50:12
51:3
28:13
return (2)
seated (4)
show (5)
speedy (1)
49:9;50:14
2:11;7:5;35:8;42:1
13:14;26:7;36:11;
10:9
returned (2)
SEC (2)
37:24;40:14
spent (1)
23:7,15
34:5;36:4
returns (1)
showed (2)
23:10
Second (6)
26:5;32:16
stages (1)
27:19
17:24;18:13,24;19:10,
Revenue (1)
sign (2)
11:2
21;38:18
41:1;50:22
stand (4)
27:21
SEC's (2)
signed (17)
2:21;31:18;37:16;39:7
review (1)
18:14,25
4:21;5:4,24;6:1;13:17, standing (1)
41:1
Section (17)
19,22,24;26:11,14,17,
33:20
reviewed (2)
15:14,18,21;16:4,5,13,
4:20;47:23
20;33:2;40:16,18,21,23 start (1)
14,20,21;24:12;26:1;
reviews (1)
46:18
28:14,17,20;29:15;44:7; significance (4)
36:4
28:21;39:3;45:25;
state (4)
51:4
47:10
2:22;6:21;25:10;28:6
reword (1)
Sections (7)
6:14
statement (10)
15:16,20,23;16:12,19; significant (1)
Ridgewood (1)
47:20
3:4;5:1;7:3;19:10,11,
17:1,6
sign-up (1)
12;31:7;33:14,15,17
31:3
secured (3)
right (28)
5:23
statements (16)
44:21,21;50:10
silent (1)
3:4,6,6;15:24;16:25;
2:19;3:3,10,17,21;6:4, Securities (2)
3:3
19:6;25:6;30:8,15,17;
19;10:9,13;11:3,8,10,12,
18:11;36:11
14,24;12:20;13:1,10;
sit (1)
35:17,24;36:2;37:19;
Securities' (1)
14:12;23:21,22,22,23;
37:15
38:2,25
32:3
27:14;30:17;38:20;
Six (17)
States (35)
Security (4)
17:3;19:13;22:6,15;
2:1,7;3:2,19;7:18;
43:21;51:18
15:25;34:14;38:21;
SOUTHERN DISTRICT REPORTERS

Min-U-Script®

UNITED STATES OF AMERICA,
ERIC S. LIPKIN,

v.
June 6, 2011

10:4,8;13:9;15:15,16,20, sure (3)

23;16:4,11,14,19,21;
17:1,6,23;24:11;25:16;
28:1,3,7,10,14;29:5,11,
14,18;30:1,9,21;31:2
status (1)
47:10
statutory (2)
22:18;25:8
still (3)
13:5;24:21;31:9
stop (1)
10:6
strict (3)
45:2;47:16;50:16
study (1)
7:11
suasion (1)
47:20
subdivision (1)
28:16
subject (4)
23:1;29:25;44:1;45:2
submission (1)
43:13
submissions (1)
43:12
submitted (7)
32:15;33:3;34:17;
37:6,13;38:8;43:8
substantial (2)
28:11;29:12
substantive (1)
35:18
suffered (1)
28:25
sufficient (1)
45:11
summarize (1)
35:6
summary (2)
39:2;48:18
summer (1)
49:1
sums (1)
22:17
Superseding (19)
4:12;5:10;14:21;
15:14;16:3,10,17,24;

26:5;38:3;50:7
suriters (1)
45:19
surrender (6)
45:7;48:8,19,21;49:2;
50:3
surrendered (2)
49:8;50:13
sworn (1)
6:20

T

table (2)
2:11;4:18
Takla (2)
2:6,9
tax (1)
27:19
taxes (1)
27:20
tenure (1)
36:14
term (13)
20:11,21;21:6,16;
22:1,11,21;23:8,12,12,
15;34:6,9
termination (1)
47:3
Terms (7)
23:2,4,7,13;39:3;
45:25;46:10
testify (5)
11:13,14,15,19,21
testimony (5)
28:24;29:24;30:7,10;
35:11
theft (8)
15:24;16:25;19:7;
35:17;37:19,23;38:1,25
therefore (2)
38:11,24
thinking (1)
43:10
Third (15)
14:20;18:2,16;19:1,
11,23;31:20;36:7;39:9,
13,17,21,25;40:4;41:24
17:4;25:13;31:20;35:12; threatened (1)
39:9,13,17,21,25;40:4;
27:7
41:24
threats (1)
supervised (14)
14:17
20:11,21;21:6,16;
Three (20)
22:1,11,20,24;23:1,6,8,
16:9;18:6;20:11,21;
12,14,15
21:1,6,16;22:1;23:16;
supervision (4)
25:18,19,25;30:23,24;
23:11;45:3;47:16;
32:2,12;35:14;38:24;
50:16
39:17;41:23
supported (1)
three-year (1)
41:20
23:12
suppressed (2)
Thursday (2)
30:16,17
5:14;42:19
Min-U-Script®

thus (1)
38:15
ties (1)
45:24
timeliness (1)
29:2
times (1)
6:8
Title (12)
15:15,17,19,22;16:3,5,
13,18,20;17:6;24:11;
44:7
today (18)
2:16;3:22;5:9,11,17,
19,21;6:12;8:8,10,13;
12:9;25:24;48:8,10,11;
49:18;51:9
together (1)
51:12
told (1)
24:20
took (1)
34:22
top (1)
14:22
total (3)
26:23;31:1;37:1
traced (1)
46:20
travel (12)
45:3,8,8;48:20,21;
49:3,7,10;50:3,11,12,16
treated (1)
7:23
trial (17)
3:11,15;10:9,16,19,22;
11:2,7,19,24;12:17;
17:10,15;23:5;31:13;
35:10;38:7
tribunal (1)
30:11
Trust (2)
34:8;36:10
trusted (1)
45:13
truth (1)
6:25
truthful (4)
34:22;43:19,24;47:1
truthfulness (1)
28:23
twice (12)
20:7,8,17,18;21:2,3,
12,13,22,23;22:7,8
Two (15)
16:2;17:17;20:16;
23:14;25:18,21,24;
30:23,24;33:5,6;37:3;
39:13;41:23;48:10
type (3)
7:24;34:13;50:8
typo (1)
50:22

U
unable (3)
3:23;5:18;9:1
unanimously (1)
10:24
unconditionally (1)
3:11
under (17)
3:2;6:7;7:21;10:3,8;
14:8;18:14,25;19:19;
24:10,11;27:13;28:20;
29:15;38:20,21;39:4
understandings (1)
28:13
understands (1)
25:22
understood (2)
26:6;32:25
unemployed (1)
47:9
United (35)
2:1,7;3:2,19;7:17;
10:4,8;13:9;15:15,16,20,

23;16:4,11,13,19,21;
17:1,6,23;24:11;25:16;
28:1,2,7,10,13;29:4,11,
14,18;30:1,9,20;31:1
unless (2)
3:11;44:10
untrue (1)
7:1
up (15)
5:5;10:4;11:3;12:9,13,
20;14:12;23:13;25:18;
37:16;45:11;46:25;50:8;
51:8,12
urge (1)
48:13
use (2)
19:4;34:6
used (3)
3:6;7:2;34:9
usefulness (1)
28:21
using (1)
33:4

V
valid (2)
6:8;31:12
valuable (1)
23:21
value (1)
33:10
values (1)
35:25
verdict (1)
11:25
verify (1)
22:24

SOUTHERN DISTRICT REPORTERS

versus (1)
2:2
victim (2)
5:2,17
victims (3)
5:20;31:22;41:12
view (2)
45:12;47:4
violate (6)
15:16,19,22;16:5;
17:23;23:3
violated (5)
12:14;23:14;29:14,24;
30:7
violating (2)
15:14;16:3
violation (5)
16:11,18,25;17:5;
37:17
violations (1)
30:1
voluntarily (4)
17:25;40:11;41:18,19
voluntary (1)
15:11
volunteered (1)
45:19
vote (1)
23:22

W
waive (8)
4:11;8:18;9:4,5,22;
14:2,9,18
Waiver (5)
6:5,8;13:15,17;15:10
waiving (3)
14:11;30:16;41:18
website (3)
5:5,12;43:14
week (1)
5:7
welcome (1)
47:25
whereabouts (2)
46:16;47:2
wife (8)
31:5;46:3;47:12,13;
48:24;49:7;50:13,15
willfully (3)
18:19;19:3,22
willing (1)
47:17
willingly (2)
17:25;32:5
wish (16)
4:1;5:21;6:2;9:4,5,25;
13:5,8;31:9;35:3;41:12;
42:3;43:3;45:23;48:3,6
wished (2)
5:17;14:3
withdraw (4)
(9) status - withdraw

UNITED STATES OF AMERICA, v.
ERIC S. LIPKIN,

June 6, 2011
24:22;27:14;29:9,18
within (1)
29:6
without (3)
23:4;49:8;50:14
witnesses (2)
11:8,12
word (2)
14:21;45:13
words (1)
17:22
work (3)
36:17,22;51:8
worked (5)
32:2,22,25;36:24;
38:16
working (8)
32:18,21;35:21,23;
37:13;38:12,13;45:16
written (1)
50:10
wrong (3)
24:16;33:18;34:25

Y
years (19)
20:6,11,16,21;21:1,6,
11,16,21;22:1,6,11,16,
21;23:14,16;25:7,8;
27:19
York (7)
18:4;32:4,14,23;
33:14,16;45:4
York/New (1)
46:3

Z
zero (1)
25:7

within - zero (10)

SOUTHERN DISTRICT REPORTERS

Min-U-Script®