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

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

on of Perry Gruss. 1205876v1/011585 13 EFTA00722321 Timestamp: 8/16/2010 5:38 PM CDT 38. All communications among Counterclaim Respondents and Gruss concerning Gruss's termination or the subsequent litigation filed by Gruss against Zwim, including any pleadings or discovery instruments or docume

l documents concerning any review or investigation of the Fund's operations, finances, or accounting prompted by or occurring after the departure of Perry Gruss from involvement with the Fund or any of the Zwim Entities. 36. All witness statements taken in connection with any internal review or investigat

Perry Gruss ("Gruss"), who was the Chief Financial Officer for Zwim's management company. After the investigation was concluded, Zwim decided that Gruss had to be fired. In late September 2006, Gruss quit before Zwirn could fire him. 7. In mid-October 2006, Zwim called every investor to explain tha

s information was material and should have been disclosed to investors immediately. 6. The investigation mentioned above focused on the conduct of Perry Gruss ("Gruss"), who was the Chief Financial Officer for Zwim's management company. After the investigation was concluded, Zwim decided that Gruss had to

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,

a partner in the Company and a member of DBZLLC and was the Chief Financial Officer and Chief Administrative Officer of the Company. 4. Aver that Gruss was effectively terminated from the Company and DBZLLC, resigning on the verge of being fired, on or about October 4, 2006, and otherwise deny the

tence of Paragraph 16. 17. Deny the allegations of Paragraph 17, except admit that the Fund Controllers and the Operations department reported to Gruss and worked under his supervision; that they had responsibilities concerning accounting and record-keeping; that they worked with the Funds' Adminis

or permission to depose Perry Gruss, DBZ's former Chief Financial Officer. We submit that Jeepers has not met its burden to show good cause why Mr. Gruss's deposition should be taken, and Your Honor should deny permission to take his deposition.' In its February 14, 2011 letter, Jeepers tries to port

r in response to Third-Party Claimants Financial Trust Company, Inc. and Jeepers, Inc.'s (collectively, "Jeepers") request for permission to depose Perry Gruss, DBZ's former Chief Financial Officer. We submit that Jeepers has not met its burden to show good cause why Mr. Gruss's deposition should be taken,

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

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

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:

hs. 25 Q. Who was present? 03:14:49 VERITEXT REPORTING COMPANY www.veritext.com EFTA00299294 Page 211 1 Epstein 2 A. I believe just Mr. Gruss and me. 3 Q. Who set up the meeting? 4 A. I did. 5 Q. How? 03:15:05 6 A. I called him. 7 Q. And asked if he would meet with you? 8

ate a bunch of 18 conversations, it was all the fact that Dan Zwirn 19 was a crook. 20 Q. Did you ever have a conversation with 03:14:36 21 Perry Gruss? 22 A. Yes. 23 Q. When was that? 24 A. In the past two months. 25 Q. Who was present? 03:14:49 VERITEXT REPORTING COMPANY www.veritext

of any discussions about the transfers from LP or HCM/Z for plane-related expenses • But any transfer of fund and managed account money required Gruss' approval, which she received Spbject to Confidentiality Agreement of 11/14/2006 • GIBSONcDUNN &4CRUICRI::RILP • • EFTA00727180 Witness Persp

ent of 11/14/2006 EFTA00727171 Closing (cont.) ■ Both payments made from LP account. See Tab 20-21 ■ All payments from LP or HCM/Z approved by Gruss. See Tabs 20-21 & 30 Subject to Coadeatiality Agreement of 11/14/2006 EFTA00727172 Transfers Using Fund/Managed Account Money 9/28/05 HCM/Z Sp

of these mattes cannot be ascertained at this time. The Securities and Exchange Commission (the "Commission') has filed a civil complaint against Perry Gruss, the former Chief Financial Officer of the Original Manager, alleging improper transfers of client funds between 2004 and 2006. The Fund is not a pa

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.

at Dubin and Swieca 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.

) invested $80 million in the Zwirn Fund. 4. In early September 2006, Zwim informed me that he was firing the Fund's then-Chief Financial Officer, Perry Gruss. Zwim said that he discovered various irregularities at the Fund, including that investors' money was used to pay for an airplane that would be owne

in Paragraph 152. 21. Deny the allegations in Paragraph 153, but aver on information and belief that DBZCO's Chief Financial Officer at the time, Perry Gruss, was responsible for improyei ly causing Fund and Managed Account assets to be used to finance the purchase of the airplane, without Plaintiff's kn

Subject: Can Perry Gruss come see JE 1:00 Wed. March 30 646 464 3766 — This to do is stored on an IMAP server. — It is managed by Mail; do not modify or delete it. 'Can Pe

From: ' To: "Jefffrey Epstein" Subject: Re: Date: Tue, 12 Apr 2011 10:49:59 +0000 Got it. (I left a vm for Perry Gruss yesterday on his cell. Will try again today) Sent via BlackBerry by AT&T From: Jeffrey Epstein Date: Tue, 12 Apr 2011 06:32:17 -0400 To: Lesley Gr

cipher=0788R); Wed, 13 Apr 2011 09:02:10 -0700 (PDT) From: Lesley Groff 4.: > Content-Type: text/plain Content-Transfer-Encoding: 7bit Subject: Perry Gruss is here Date: Wed, 13 Apr 2011 12:02:08 -0400 Message-Id: <F2FC4719-B817-4AED-8B07- To: Jeff frey Epstein <[email protected]> Mime-Version:

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

From: Lesley Groff <MINIII ). To: Jefffrey Epstein < III > Subject: Perry Gruss Date: Mon, 28 Mar 2011 14:23:29 +0000 Perry Gruss has penciled you in for 1:00 at the house on WEd. (he mentioned it would be lunch?) He asked that I call him tomorrow around 10:30-11:00 to firm it