Epstein Secrets

ee. He delegated management of the back office and day-to-day operations to other senior officers who were experienced in those areas, including Mr. Gruss. The financing sources included cash on the funds' balance sheets; interest and principal received from existing loans; proceeds from sales of asse

exhibits and meeting with front-office professionals to discuss available opportunities. Mr. Zwim met regularly with DBZ's Chief Financial Officer, Perry Gruss, and other members of the treasury group to discuss the financing of potential investments. Mr. Zwim adjusted the size and timing of investments bas

the substance of all the issues was appropriate. Mr. Epstein demanded to speak to Schulte, and Mr. Zwim facilitated the call. Mr. Epstein spoke to Harry Davis of Schulte, but was not satisfied with the conversation. Mr. Epstein also had questions about the value of FTC's investments in the Fund. Mr. Epstei

oney, he will call William Louis Dreyfus to let him know that HB wouldn't be moving forward with DBZ &Co on some energy joint venture? f. As Mr. Gruss said that was "not good"? 8. X-525 also makes clear that at various times the Fund had a liquidity problem? a. X-173 starts with a 11/18/04 emai

incentive fee deferrals was done to provide tax advantages, but left the company without enough cash to pay expenses? (p3) 2) SR concluded that Gruss approved the premature payment of management fees and the use of fund monies to pay your plane expenses? 19 EFTA00624882 Timestamp: 7/212011 5:

sed to deviate from the script? e. You do recall that he wanted to talk to one of the Fund's attorneys and in response to that request, you asked Harry Davis of SR to call JE? (167) 15. You don't recall any call with JE between 10/10, the first scripted call and 10/30, the second scripted call? (157) 16

Daniel Zwim, the Managing Principal of D.B. Zwim. Mr. Zwim informed Mr. Epstein that D.B. Zwirn was terminating the Fund's chief financial officer, Perry Gruss, but stated that there was "nothing wrong" at the Fund. When Mr. Epstein asked for a more detailed explanation, Mr. Zwim indicated that the CFO had

Mr. Zwirn that he wanted to withdraw all of FTC's money from the Fund. 19. In October 2006, D.B. Zwim officially announced the resignation of Mr. Gruss as CFO of the Fund. D.B. Zwim, however, continued to conceal the reasons for Mr. Gruss's departure. In its 2006 Third Quarter Investor Commentary,

ed FTC's 5 K&E I2W-6503 EFTA00585804 complete withdrawal from the Fund for a third time and asked Mr. Zwirn to have the Fund's outside counsel, Harry Davis, call Mr. Epstein. 22. That same day, Harry Davis, a partner with Schulte Roth and Zabel LLP ("Schulte Roth"), called Mr. Epstein and apologized f

volving oversight of sub-advisor DB Zwirn beginning in the Fall 2006." • September 24, 2006 Zwirn calls Jeffrey to advise that he is going to fire Gruss but it is not for material reasons. Jeffrey advises that he wants to redeem FTC's entire investment. • Sepetember 30, 2006. Gruss is fired. • O

utright lie about non-material accounting irregularities. Zwirn claims it was on advice of counsel. JEE speaks to Dubin, Zwirn and Zwirn's counsel (Harry Davis from Schulte Roth) about lie and JEE again demands to redeem FTC's entire investment in the Fund. At this time, it is explained that Zwirn is tryin

126 1 Epstein 2 A. Yes. 3 Q. He lied to you about the airplane? 4 A. He lied that the things that he 5 represented were the reasons that Gruss were fired 11:45:55 6 were strictly immaterial. He said the phrase that 7 it was immaterial was a lie. 8 Q. Anything else you recall him using

inly not the 7 representation that they had made to either Glenn 8 or myself." 9 A. Yes. 10 Q. Who is "they"? 11:36:33 11 A. The Zwirn, Harry Davis, Dan Zwirn -- 12 Harry Davis specifically to me, that the book -- 13 what had been represented to me initially as mere 14 bookkeeping entry irreg