Epstein Secrets

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

of the Fund's investment 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 pr

Partnership Agreement, dated as of May 1, 2003 (as amended to the date hereof, the "Agreement") of the Fund, the General Partner hereby agrees that Financial Trust Company, Inc. (the "Company") shall be permitted to withdraw its Capital Account as of the last Business Day of the calendar quarter ending at least two years af

or a complete withdrawal was not timely because it was not given with 120-days notice. 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

1008645v1/011585 EFTA00586235 Statement of the Claim 22. In 2002, Epstein was introduced to Daniel Zwim by Glenn Dubin. Dubin and his partner Henry Swieca started Highbridge Capital Corporation, a very successful investment management firm. Epstein had a long-standing relationship with Dubin, and High

:07 16 that you read it? 17 A. Sometime in the last two weeks. 18 Q. You see that it states that you shall 19 be permitted to withdraw its, Financial Trust 20 Inc.'s, capital account as of the last business 09:45:32 21 day of the calendar quarter ending at least two 22 years after the company init

10:19:01 6 business? 7 A. Up until today. 8 Q. Has the business changed its name? 9 A. Yes. 10 Q. What is it now called? 10:19:11 11 A. Financial Trust Company. 12 Q. And is Financial Trust Company 13 essentially the same business that you created 14 when you left Bear Stearns? 15 A. Essentially.

that JPMorgan purchased 10:45:49 6 Highbridge. 7 A. I believe 50 percent. 8 Q. And who owned the other 50 percent? 9 A. I believe it was Henry Swieca. 10 Q. Did he also meet with JPMorgan, to your 10:46:00 11 knowledge? 12 A. I don't know. 13 Q. Was he an active partner in Highbridge? 1

N NEW YORK, NEW YORK IN THE MATTER OF FORTRESS VRF I LLC and FORTRESS VALUE RECOVERY FUND I LLC, Claimants v. JEEPERS, INC., Respondent and FINANCIAL TRUST COMPANY, INC. and JEEPERS, INC., Counter-Claimants and Third-Party Claimants v. D.B. ZWIRN SPECIAL OPPORTUNITIES FUND, L.P. k/n/a FORTRESS VALUE RECOVERY FU

director and the senior portfolio manager of the Special Opportunities Group at Highbridge. B. DBZ Background In 2002, Mr. Zwirn, Mr. Dubin, and Henry Swieca (Mr. Dubin's business partner) established Highbridge/Zwim Capital Management, LLC ("Highbridge/Zwim") as a separate management company to carry ou

cu llllll ended diet Mr. Epstein invest in a new hedge fund run by Daniel Zwirii. Mr. Epstein invested up to $80 million via his consulting company, Financial Trust, according to court papers. At its peak, the investment was worth $140 million. Mr. Dubin and Mr. Epstein parted professional ways after Mr. Zwirn'

ars later, in 2004, Mr. Staley orchestrated a deal in which JPMorgan bought a majority stake in Highbridge. Mr. Dubin, and the Highbridge co-founder Henry Swieca, became JPMorgan employees. It is not clear whether or how Mr. Epstein was compensated for helping broker that deal. "Mr. Staley has never engaged

. Epstein pay a 2% management fee to the Zwirn fund, rather than Mr. Epstein's offer of 1.3%. In addition, Mr. Dubin solicited Mr. Epstein, through Financial Trust Company, Inc., to invest an additional $20 Million with the Zwirn fund in January 2005 and negotiated a side letter with Mr. Epstein limiting Mr. Epstein's lock-u

ade that statement to Mr. Susman. 8. Although Dubin & Swieca Asset Management was a partner in Zwirn's management entities, we do not know whether Henry Swieca was involved at all. 9. According to Mr. Zwirn, Mr. Dubin was notified that Mr. Epstein's redemption was not consistent with Mr. Zwirn's understan

1. Jeffrey Epstein and Financial Trust Company, Inc. invested hundreds of millions of dollars with Highbridge as an investment manager with its many sub-advisors from 2001 to the present. 2. Daniel

ade that statement to Mr. Susman. 8. Although Dubin & Swieca Asset Management was a partner in Zwim's management entities, we do not know whether Henry Swieca was involved at all. 9. According to Mr. Zwirn, Mr. Dubin was notified that Mr. Epstein's redemption was not consistent with Mr. Zwim's understand

t management company, D.B. Zwirn & Co, L.P. As well, Dubin and his partner, Henry Swieca, owned a significant portion of D.B. Zwim & Co., L.P. 4. Financial Trust Company, Inc. ("FTC"), which I understand was owned by Jeffrey Epstein, was an important client of Dubin and Highbridge, and I understand that FTC had made the m

t of money that was managed by Daniel B. Zwim ("Zwim") and his investment management company, D.B. Zwirn & Co, L.P. As well, Dubin and his partner, Henry Swieca, owned a significant portion of D.B. Zwim & Co., L.P. 4. Financial Trust Company, Inc. ("FTC"), which I understand was owned by Jeffrey Epstein,