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

em, in effect, that the investigation had been terminated as to them. F. DBZ's Discovery of Accounting Improprieties and Response In Spring 2006, Lawrence Cutler, DBZ's Chief Compliance Officer, and David Proshan, DBZ's General Counsel, informed Mr. Zwirn of a potential accounting irregularity relating to DB

stigation was apparently completed in mid-September 2006. Thereafter, in early October 2006, the Fund parted ways with its Chief Financial Officer, Perry Gruss. Mr. Zwim, using a script Schulte had approved, immediately called investors (including Mr. Epstein) to inform them of Mr. Gruss's departure (though

ial Officer, Perry Gruss. Mr. Zwim, using a script Schulte had approved, immediately called investors (including Mr. Epstein) to inform them of Mr. Gruss's departure (though he did not tell them the specific nature of the two accounting improprieties). Very shortly thereafter, a third accounting impr

dicates that, in the spring of 2006, various potential accounting improprieties were discovered at the Fund. According to the deposition testimony, Lawrence Cutler, the Fund's Chief Compliance Officer, and David Proshan, the Fund's General Counsel, informed Mr. Zwirn of two potential accounting irregularities

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:

imate demise of the DB Zwirn SOFs- 15 EFTA00624878 Timestamp: 7/212011 5:39:28 PM EST a. In March of 2006, David Proshan, your Gen Counsel, and Lawrence Cutler, your chief compliance officer, came to you and told you that Tim Wong, a controller hired in Dec. 05 to conduct an internal audit of the manageme