Epstein Secrets

e FROM: Jay P. Lefkowitz, P.C. Eric F. Leon David S. Flugman DATE: August 7, 2009 RE: Potential Claims against D.B. Zwim, Glenn Dubin, and/or Highbridge Capital You have asked us to examine potential claims against D.B. Zwim, Glenn Dubin, and/or Highbridge Capital in connection with Jeepers, Inc.'s ("Jeeper

ms Jeepers might have against the Fund. Section Two of this memorandum addresses any claims that Jeepers might have against Glenn Dubin ("Dubin") or Highbridge Capital ("Highbridge"), including the extent to which Dubin or Highbridge are covered by the terms of the Settlement Agreement and a discussion of potentia

investments in the D.B. Zwim Special Opportunities Fund (the "Fund") in light of the Settlement Agreement and Release entered into between Jeepers, Financial Trust Company, Inc., and you on the one hand, and the Fund, on the other (the "Settlement Agreement"). Section One of this memorandum addresses the Settlement Agreemen

ination Provisions As you are aware, the terms of the Settlement Agreement release the Fund and certain other parties from any claims that Jeepers, Financial Trust, or you might have in connection with your investments in the Fund in exchange for the right to withdraw the principal amounts of two of Jeepers's

ent manager. Statement of the Claim 23. In 2002, Epstein was introduced to Daniel Zwim by Glenn Dubin. Dubin and his partner Henry Swieca started Highbridge Capital, a very successful investment management firm. Epstein had a long-standing relationship with Dubin and Higbridge, who provided investment advisory

BITRATION IN THE MATTER OF FORTRESS VRF I LLC and FORTRESS VALUE RECOVERY FUND I LLC, Claimants v. JEEPERS, INC., Respondent § Case No. and FINANCIAL TRUST COMPANY, INC. and § JEEPERS, INC., Counter-Claimants and Third-Party Claimants § v. § Arbitrator: D.B. ZWIRN SPECIAL OPPORTUNITIES § FUND, L.P. k/n/a FORTR

awal, the Fund declared that it was not timely because 120-days notice was not given. According to the Fund, [T]he 2005 Letter Agreement permitted Financial Trust to withdrawal under Section 9.1 as of March 31, 2007 (and as of the second anniversary of that date thereafter) on 120 days prior written notice. B

Yes, sir. 02:42:23 16 Q. And there is an attachment to this 17 e-mail; correct? 18 A. Yes. 19 Q. And I note that this is produced by 20 Highbridge Capital and that the Bates numbers are 02:42:35 21 consecutive between the e-mail and the attachment. 22 A. Okay. 23 Q. Do you remember receiving th

, marked 14 for identification.) 15 (Discussion off the record.) 01:56:31 16 MR. SCHWARTZ: Exhibit 5 is a 17 memorandum on the letterhead of Financial 18 Trust Company and Zwirn dated November 13, 19 2006, with the Bates number JE 2000. 20 Q. Do you recognize that to be your 01:56:46 21 signature? 22 A. I

ned subsidiary called 19 JEEPERS. 20 Q. Which was the wholly owned subsidiary 02:17:31 21 of Financial Trust Company? 22 A. Yes, sir. 23 Q. Financial Trust Company is located 24 where? 25 A. The Virgin Islands, U.S. Virgin 02:17:38 VERITEXT REPORTING COMPANY www.veritext.com EFTA00299258 Page 175 1

Fund: liebbridge - Finaneial Trug Co. Date: 9302006 Quantle S\,mhot Symbol DescrlWoo PORTFOLIO APPRAISAL Highbridge Capital blimagemerd a of 9/30/2006 Deal IP@ Pnrehme Type r unn"Ameta Date Loal Volt Con Etel NI:letet Market Valar Date: 10/6/2006 4:41:16P/1

Fund: liebbridge - Finaneial Trug Co. Date: 9302006 Quantle S\,mhot Symbol DescrlWoo PORTFOLIO APPRAISAL Highbridge Capital blimagemerd a of 9/30/2006 Deal IP@ Pnrehme Type r u

.030 16,296,799 11,296,799 EFTA_R1_02058785 EFTA02698374 Haze Trust Analysis of Investments unrealized Investment FMV 4/30/12 Gain(loss) Highbridge Capital 4/20/99 10.041,666 33,062,536 23,020,870 This represents the total of Highbridge Capital Corp. and HS Multi•Strategy Holdings ltd. King Street

0112 PARTNERSHIPS£ RECEIVABLES CASH SEWRITICS 111.610 111;10 ,I.610 111 610 EFTA_R1_02058787 EFTA02698376 Environmental Solutions Shares Financial Trust Company Date Shares Cost Basis per share May-05 100,000 72,020.00 0.7202 (average) 4/21/05 2,352,941 2,000,000.00 0.8500 3/19/10 2,002,959 1,001,47