lowed Bear Steams to borrow money against otherwise illiquid securities, and create the appearance of a real market for the securities held by both the High-Grade and Enhanced Funds. Had Mr. Epstein been made aware of the true nature of what was transpiring, FTC would never have put any money into the newly-c

ar Steams High- Grade Structured Credit Enhanced Leverage Fund, M. ("Enhanced Fund"). 6. Mr. Spector's responsibilities also included ensuring that the High-Grade and Enhanced Funds were using proper valuation techniques and were managing their risk by prudently hedging. 7. Mr. Spector continually reassured