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

Filing 90

DECLARATION of DANA M. SESHENS in Support re: 79 MOTION for Summary Judgment.. Document filed by Charles 15 Associates, Charles 15 LLC, Charles Sterling LLC, Charles Sterling Sub LLC, College Place Enterprises LLC, Coney Island Baseball Holding Company LLC, Estate of Leonard Schreier, FFB Aviation LLC, FS Company LLC, Fred Wilpon Family Trust, Arthur Friedman, Ruth Friedman, Iris J. Katz and Saul B. Katz Family Foundation, Inc., Judy and Fred Wilpon Family Foundation, Inc., Amy Beth Katz, David Katz, Dayle Katz, Gregory Katz, Howard Katz, Iris Katz, 157 J.E.S. LLC, Air Sterling LLC, BAS Aircraft LLC, Jason Bacher, Bon Mick Family Partners LP, Bon-Mick, Inc., Brooklyn Baseball Company LLC, C.D.S. Corp., Michael Katz, Saul B. Katz, Todd Katz, Katz 2002 Descendants' Trust, Heather Katz Knopf, Natalie Katz O'Brien, Mets II LLC, Mets Limited Partnership, Mets One LLC, Mets Partners, Inc., Minor 1 (REDACTED), Minor 2 (REDACTED), L. Thomas Osterman, Phyllis Rebell Osterman, Realty Associates Madoff II, Red Valley Partners, Robbinsville Park LLC, Ruskin Garden Apartments LLC, Saul B. Katz Family Trust, Michael Schreier, Deyva Schreier Arthur, See Holdco LLC, See Holdings I, See Holdings II, Sterling 10 LLC, Sterling 15C LLC, Sterling 20 LLC, Sterling Acquisitions LLC, Sterling American Advisors II LP, Sterling American Property III LP, Sterling American Property IV LP, Sterling American Property V LP, Sterling Brunswick Corporation, Sterling Brunswick Seven LLC, Sterling Dist Properties LLC, Sterling Equities, Sterling Equities Associates, Sterling Equities Investors, Sterling Heritage LLC, Sterling Internal V LLC, Sterling Jet II Ltd., Sterling Jet Ltd., Sterling Mets Associates, Sterling Mets Associates II, Sterling Mets LP, Sterling Pathogenesis Company, Sterling Third Associates, Sterling Thirty Venture LLC, Sterling Tracing LLC, Sterling Twenty Five LLC, Sterling VC IV LLC, Sterling VC V LLC, Edward M. Tepper, Elise C. Tepper, Jacqueline G. Tepper, Marvin B. Tepper, Valley Harbor Associates, Kimberly Wachtler, Philip Wachtler, Bruce N. Wilpon, Daniel Wilpon, Debra Wilpon, Fred Wilpon, Jeffrey Wilpon, Jessica Wilpon, Judith Wilpon, Richard Wilpon, Scott Wilpon, Valerie Wilpon, Wilpon 2002 Descendants' Trust, Robin Wilpon Wachtler. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C PART 1, # 4 Exhibit C PART 2, # 5 Exhibit D, # 6 Exhibit E, # 7 Exhibit F, # 8 Exhibit G, # 9 Exhibit H, # 10 Exhibit I, # 11 Exhibit J, # 12 Exhibit K, # 13 Exhibit L, # 14 Exhibit M, # 15 Exhibit N, # 16 Exhibit O, # 17 Exhibit P, # 18 Exhibit Q, # 19 Exhibit R, # 20 Exhibit S, # 21 Exhibit T, # 22 Exhibit U, # 23 Exhibit V, # 24 Exhibit W, # 25 Exhibit X, # 26 Exhibit Y, # 27 Exhibit Z, # 28 Exhibit AA)(Seshens, Dana)

EXHIBIT Z

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C O N F I D E N T I A L

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
11-CV-03605(JSR)(HBP)

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IRVING H. PICARD, Trustee for
the Liquidation of Bernard L.
Madoff Investment Securities LLC,

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Videotaped
Deposition of:

Plaintiff,
v.

MICHAEL KATZ

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SAUL B. KATZ, et al.,
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Defendants.
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TRANSCRIPT of testimony as taken by and before

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NANCY C. BENDISH, Certified Court Reporter, RMR, CRR

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and Notary Public of the States of New York and New

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Jersey, at the offices of Baker & Hostetler, 45

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Rockefeller Plaza, New York, New York on Friday,

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December 9, 2011, commencing at 9:38 a.m.

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PICARD v. KATZ, et al.

CONFIDENTIAL

MICHAEL KATZ 12/9/11
147

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killed in those markets of dis -- of turmoil.

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Q.

So, for example, one obvious example

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that everybody remembers is 9/11.

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when 9/11 happened that the markets closed and there

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was a drop in the S & P?

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right?

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A.

Do you remember

You recall all that,

Yes, I do.

I also remember when it

opened, a lot recovered.

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Q.

And during that period of

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September 2001, did you review Madoff's returns

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during that period?

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A.

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Q.

I don't remember.
Was that an example of a period of

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market turmoil where you and your partners were

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fascinated that Madoff's returns remained steady?

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A.

His investment strategy was not

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market timing.

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upside, he collared his investment.

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very surprised that he did not get hurt, but we

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didn't track it day by day.

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correctly, there was a downturn and then it popped

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back.

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He protected on the down and the
So we were not

If I remember

We didn't do a day-by-day analysis of it.
Q.
A.
Q.

Of his returns, you're saying?
That's correct, yes.
Okay.
BENDISH REPORTING, INC.
877.404.2193

PICARD v. KATZ, et al.

CONFIDENTIAL

MICHAEL KATZ 12/9/11
148

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A.

But his strategy is to protect on

that.
Q.
A.

Protect on the what, I'm sorry?
Protect on the downside and the

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upside is a collar, so that he would not be

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subjected to the turmoils of the market.

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Q.

So it's your understanding that

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Madoff's strategy insulated him from the turmoils of

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the market?

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A.
Q.

Yes.
And earlier you testified that you --

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that you and your partners were fascinated by his

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ability to not be affected by the turmoil in the

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market, right?

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A.
proper word.
Q.

Correct.

Maybe not fascinated is a

We were impressed that he did not.
And did you ever look into how it was

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that Madoff was seemingly unaffected by the -- by

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market conditions?

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A.
Q.

Did not.
So would it be fair to say that your

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understanding is that Madoff's returns were

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unaffected by the market?

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A.
Q.

That's correct.
And did you ever do any investigation
BENDISH REPORTING, INC.
877.404.2193