p with the idea to create the Enhanced Fund, which would utilize the same strategy as the High-Grade Fund only with leverage. 9. In order to make the Enhanced Fund viable, investors in the High-Grade Fund had to be convinced to roll-over their investments into the Enhanced Fund. Mr. Spector was charged with co

nd punitive damages. 54. All documents concerning the allegation on page 3 of the Amended Statement of Claim that "in reality, Respondents created the Enhanced Fund as part of a scheme both to alleviate the looming liquidity problems that the High Grade Fund begun to encounter and to facilitate fraudulent manip

om me and others on Bear Steams' Board of Directors. As an example of his dishonesty, Warren secretly invested $25 million of Bear Stearns' money in the Enhanced Fund. This unauthorized investment resulted in almost a total loss. When confronted with irrefutable evidence of his duplicity at a meeting of the Board

esponsive documents. 54. All documents concerning the allegation on page 3 of the Amended Statement of Claim that "in reality, Respondents created the Enhanced Fund as part of a scheme both to alleviate the looming liquidity problems that the High Grade Fund begun to encounter and to 13 997243vI/011543 EFTA00