Epstein Secrets

tion, marketing, or management of the Funds. -6- EFTA00314495 B. Epstein Invests in the High Grade Fund. In late 2003, Epstein was provided with the Private Placement Memorandum ("PPM") for the High Grade Fund (Exhibit A) by someone within BSAM's Hedge Fund Services. According to the PPM, the High Grade Fund intended to inv

up to 10% of the investment portfolio . . . may be invested in lower-rated investment grade, below investment grade or unrated securities. As the Master Fund's portfolio is leveraged, such holdings may be equal to a substantial amount of the Master Fund's Net Asset Value. In fact, if the Master Fund employ

Millennium Management LLC, a Delaware limited liability company, the general partner of the Underlying Fund. "Underlying Fund Memorandum" refers to the Private Placement Memorandum of Millennium USA LP and any supplements thereto, attached hereto as Appendix A. "Underlying Fund Documents" refers to the offering and organizatio

s may recognize ordinary income or loss in connection with a withdrawal from the AlphaKeys Fund as a result of the Underlying Fund's and Underlying Master Fund's mark-to-market election. Investors should consult their own tax advisors about the character of any gain or loss recognized on withdrawal from the A

Millennium Management LIC, a Delaware limited liability company, the general partner of the Underlying Fund. "Underlying Fund Memorandum" refers to the Private Placement Memorandum of Millennium USA LP and any supplements thereto, attached hereto as Appendix A. "Underlying Fund Documents" refers to the offering and organizatio

s may recognize ordinary income or loss in connection with a withdrawal from the AlphaKeys Fund as a result of the Underlying Fund's and Underlying Master Fund's mark-to-market election. Investors should consult their own tax advisors about the character of any gain or loss recognized on withdrawal from the A