Epstein Secrets

behalf of his clients, for over 25 years. Since his departure from Bear Stearns in 1981, he has also maintained a close personal relationship with Jimmy Cayne, Bear Steams' former Chairman and CEO. Until the I Respondent hereby incorporates by reference the Statement of Answer submitted by Respondents The

s of both his own money and his clients' money with Bear Steams following his departure from the firm over 25 years ago. Sometime in the mid-1990s, Cayne introduced Spector to Epstein, and they crossed paths socially a few times in the ensuing decade. As a result of his relationship with Cayne and hi

new, highly risky and highly leveraged fund, which was viewed by many as an excellent investment opportunity and which was made available to every High Grade investor. Accordingly, Epstein was provided with the PPM for the Enhanced Fund dated June 30, 2006 (Exhibit C). As with the High Grade Fund, the ma

109 3. Inflation of Capital By Using Incorrect Marks 110 V. 4. Misrepresentations to Regulators Relating to VaR DEFENDANTS' SCIENTER 112 A. James E. Cayne 112 B. Alan D. Schwartz 115 C. Samuel L. Molinaro. Jr. 116 D. Warren J. Spector 120 E. Alan C. Greenberg 121 F. Michael J. Alix 123

ns: mortgages originated by BEARRES and ECC that were sent directly into the securitization process at Bear Steams. CAO: Center for Audit Quality. Cayne: James E. Cayne, a director, Chairman of the Board and Chief Executive Officer of Bear Stearns during the Class Period. Cioffi: Ralph Cioffi, the B

y developed by BSAM. The Hedge Funds' objective was to provide current income and capital appreciation in excess of LIBOR by investing primarily in High Grade structured financed securities, with an emphasis on long positions in triple-A and double-A rated asset backed securities, such as CDOs. The High G

internal control structure and procedures of the issuer for financial reporting. 357. In connection with the Company's 2006 Form 10-K, Defendants Cayne and Molinaro executed the applicable Rule 302 certification. 358. Defendants Schwartz and Molinaro filed identical certifications with respect to

olders' equity was 18.3%. "We are pleased with this excellent performance, revenues for the first quarter were up for every business segment," said James E. Cayne, chairman and chief executive officer of The Bear Steams Companies Inc. "Growing the company remains a core focus as we 164 EFTA00316892 Case 1:

the housing market. 525. Moreover, despite the fact that Deloitte was obliged to be especially skeptical of related party transactions such as the High Grade fund bailout, Deloitte deliberately or recklessly disregarded the fact that the collateral the Company had received as a result of the bailout was