Epstein Secrets

a trader in 1977. He left the company four years later, but he has for many years maintained close personal and professional relationships with both Alan Greenberg, former Chairman of the Board, and Jimmy Cayne, former long-time CEO and Epstein's mentor. Epstein invested millions of both his own money and his c

omplaint in a separate action in the United States District Court for the District of the Virgin Islands, Epstein alleges repeatedly that "Cayne and Greenberg" — not Spector— were his primary points of contact at Bear Steams.2 When Spector did speak with Epstein, the conversations generally were cursory a

ole, Epstein repeatedly refers to Ralph Cioffi and Matthew Tannin, the Funds' managers, as "indicted fraudsters." As Epstein is now no doubt aware, Cioffi and Tannin were acquitted of all charges on November 10, 2009. 10 Epstein also alleges — correctly — that Spector approved an investment of $25 mil

' VaR was far below the industry average, even as Bear Steams' concentration of risky ABS was the highest in the investment banking community. E. Alan C. Greenberg 487. As a director and Chairman of the Executive Committee of Bear Stearns, Defendant Greenberg participated in the issuance of Bear Steams' mater

in the investment banking community. E. Alan C. Greenberg 487. As a director and Chairman of the Executive Committee of Bear Stearns, Defendant Greenberg participated in the issuance of Bear Steams' materially false and 121 EFTA00316849 Case 1:08-cv-02793-RWS Document 102 Filed 02/27/09 Page 137 o

y difficulties. I would say it's been, obviously there's a lot of market volatility but we've had no difficulties there." Barely two weeks earlier, Cioffi, a Senior Managing Director of BSAM and a member of Bear Stearns' Board of Directors, had written of the Funds' February results that "I can't belie

ger.' According to the Amended Statement of Claim, Epstein began his career at Bear Stearns in 1977 after being personally recruited as a trader by Alan Greenberg ("Greenberg"), Bear Stearns' former Chairman. (ASOC ¶ 18). At Bear Stearns, Epstein traded options and served in the "special-products division," ad

o the Amended Statement of Claim, Epstein began his career at Bear Stearns in 1977 after being personally recruited as a trader by Alan Greenberg ("Greenberg"), Bear Stearns' former Chairman. (ASOC ¶ 18). At Bear Stearns, Epstein traded options and served in the "special-products division," advising some

creation of the EL Fund to the indictment of Ralph Cioffi and Matthew Tannin, the portfolio managers of the HG Funds, it must be noted that Messrs. Cioffi and Tannin were acquitted of all charges on November 10, 2009.10 9 Every investor in the HG Fund was informed about the launch of the EL Fund, provi

t the Officer Defendants) 214 COUNT III For Violations of Section 20A of the Exchange Act (Against Defendants Cayne, Schwartz, Spector, Molinaro, Greenberg, and Farber) 215 vi EFTA00316720 Case 1:08-cv-02793-RWS Document 102 Filed 02/27/09 Page 8 of 347 PRAYER FOR RELIEF 116 DEMAND FOR JURY TRIAL

r for Audit Quality. Cayne: James E. Cayne, a director, Chairman of the Board and Chief Executive Officer of Bear Stearns during the Class Period. Cioffi: Ralph Cioffi, the Bear Steams trader who started and managed the High Grade Fund, a Managing Director of BSAM and a Director of BSC. CDOs: Collate