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 manipulations of fund portfolio values already taking place in the High Grade Fund." 55. All docu

tatement 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 EFTA00731192 facilitate fraudulent manipulations of fund portfolio values already taking place in t

sly underrepresented the Company's true losses, including its losses on the worthless collateral it had received under the repurchase agreement with the High Grade Fund and the devalued and illiquid retained interests that it continued to carry on its books, as set out at paragraphs 212 to 216 above. 186 EFTA0031