Epstein Secrets

ule.) Because there was no possibility of withdrawing earlier if disclosure occurred earlier, Mr. Zwirn's alleged delay caused no damage. See In re J.P. Morgan Chase & Co. Shareholder Litig., 906 A.2d 808, 827 n.61 (Del. Ch. 2005) (to prove common law fraud, "[the] plaintiff must have suffered substantial damage, not

3 A.2d 818 (Del. 1992) 50 Dittrick v. Chalfant, 948 A.2d 400 (Del. Ch. 2007) 30, 31 Hillman v. Hillman, 910 A.2d 262 (Del. Ch. 2006) 48 In re J. P. Morgan Chase & Co. Shareholder Litig., 906 A.2d 808 (Del. Ch. 2005) 46 In re Mesa Ltd. P'ship Preferred Unitholders Litig., 91 Civ. 12243, 1991 WL 262669 (Del. Ch.

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

r. Epstein brought Highbridge to the attention of Jes Staley, then the CEO of J.P. Morgan Asset Management, and helped 6 EFTA00613913 facilitate J.P. Morgan's purchase of Highbridge. The deal made Mr. Dubin a billionaire. Mr. Dubin paid Mr. Epstein a $20 million finder's fee for facilitating the transactio

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

tober 06, Highbridge demanded that its account at Zwirn be reduced, as third-party managers were no longer allowed under Highbridge's contract with J.P. Morgan. As a result, after Highbridge's securities were redeemed or sold to the remaining Zwirn Funds those in which I was invested), some four to five h

paid, so that DSAM still retains an interest in the Zwirn business.] • In October 2006, Zwirn called me to alert me to the fact he had terminated Perry Gruss as CFO for reasons which Zwirn initially claimed were not material. I believe that Zwirn's counsel told you a similar story, but with more details.