10-05286-smb Doc 202 Filed 03/22/19 Entered 03/22/19 14:16:03 Main Document Pg 1 of 3 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION CORPORATION, Adv. Pro. No. 08-01789 (SMB) Plaintiff, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. IRVING H. PICARD, Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC, Adv. Pro. No. 10-05286 (SMB) Plaintiff, v. LEGACY CAPITAL LTD., Defendant. REPLY DECLARATION OF OREN J. WARSHAVSKY IN SUPPORT OF THE TRUSTEE’S MOTION FOR SUMMARY JUDGMENT I, Oren J. Warshavsky, declare pursuant to 28 U.S.C. § 1746, that the following is true: 1. I am a Partner with the law firm of Baker & Hostetler LLP and counsel to the Trustee. I submit this reply declaration in support of the Trustee’s Motion for Summary Judgment. 10-05286-smb Doc 202 Filed 03/22/19 Entered 03/22/19 14:16:03 Main Document Pg 2 of 3 2. Attached hereto as Exhibit 1 is a true and correct copy of the transcript of the testimony given by Frank DiPascali from the criminal trial captioned United States v. Bonventre et al., No. 10-cr-228 (LTS) (S.D.N.Y.), ECF No. 856 on December 4, 2013. 3. Attached hereto as Exhibit 2 is a true and correct copy of the transcript of the testimony given by Frank DiPascali from the criminal trial captioned United States v. Bonventre et al., No. 10-cr-228 (LTS) (S.D.N.Y.), ECF No. 858 on December 5, 2013. 4. Attached hereto as Exhibit 3 is a true and correct redacted copy of a portion of BLMIS’s JPMorgan Chase Bank account statement for the period September 1, 2007 to September 28, 2007 for account number 000000140081703 with the beginning Bates number JPMSAB0003915. 5. Attached hereto as Exhibit 4 is a true and correct redacted copy of a portion of BLMIS’s JPMorgan Chase Bank account statement for the period September 29, 2007 to October 31, 2007 for account number 000000140081703 with the beginning Bates number JPMSAB0003870. 6. Attached hereto as Exhibit 5 is a true and correct redacted copy of a portion of BLMIS’s JPMorgan Chase Bank account statement for the period May 31, 2008 to June 30, 2008 for account number 000000140081703 with the beginning Bates number JPMSAB0004257. 7. Attached hereto as Exhibit 6 is a true and correct copy of a portion of the Expert Report of Lisa M. Collura, CPA, CFE, CFF, dated February 20, 2017 (without exhibits). 2 10-05286-smb Doc 202 Filed 03/22/19 Entered 03/22/19 14:16:03 Main Document Pg 3 of 3 8. I declare under penalty of perjury that the foregoing is true and correct. Dated: March 22, 2019 /s/ Oren J. Warshavsky New York, New York Oren J. Warshavsky 3 10-05286-smb Doc 202-1 Filed 03/22/19 Entered 03/22/19 14:16:03 Exhibit 1 Pg 1 of 180 Exhibit 1 10-05286-smbDc4rbon1Case 1:10-cr-00228-LTS Doc 202-1 Filed Document 03/22/19 856 Entered Filed 04/03/1403/22/19 14:16:03 Page 1 of Exhibit179 46771 Pg 2 of 180 1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK 2 ------------------------------x 3 UNITED STATES OF AMERICA 4 v. 10 Cr. 228 (LTS) 5 DANIEL BONVENTRE, JEROME O'HARA, 6 GEORGE PEREZ, ANNETTE BONGIORNO, 7 JOANN CRUPI, Jury Trial 8 Defendants. 9 ------------------------------x New York, N.Y. 10 December 4, 2013 9:00 a.m. 11 Before: 12 HON. LAURA TAYLOR SWAIN 13 District Judge 14 15 APPEARANCES 16 17 PREET BHARARA United States Attorney for the 18 Southern District of New York MATTHEW L. SCHWARTZ 19 RANDALL W. JACKSON JOHN T. ZACH 20 Assistant United States Attorneys 21 GORDON MEHLER 22 SARAH LUM Attorneys for Defendant O'Hara 23 24 LARRY H. KRANTZ KIMBERLY A. YUHAS 25 Attorneys for Defendant Perez SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 10-05286-smbDc4rbon1Case 1:10-cr-00228-LTS Doc 202-1 Filed Document 03/22/19 856 Entered Filed 04/03/1403/22/19 14:16:03 Page 2 of Exhibit179 46781 Pg 3 of 180 1 APPEARANCES 2 ANDREW J. FRISCH 3 GARY VILLANUEVA AMANDA BASSEN 4 Attorney for Defendant Bonventre 5 ROLAND G. RIOPELLE 6 MAURICE H. SERCARZ ARIELLE PANKOWSKI 7 Attorneys for Defendant Bongiorno 8 ERIC R. BRESLIN 9 MELISSA S. GELLER Attorneys for Defendant Crupi 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 10-05286-smbDc4rbon1Case 1:10-cr-00228-LTS Doc 202-1 Filed Document 03/22/19 856 Entered Filed 04/03/1403/22/19 14:16:03 Page 3 of Exhibit179 46791 Pg 4 of 180 1 (Trial resumed; jury not present) 2 (Appearances taken) 3 THE COURT: Good morning. I trust you have all 4 received copies of the order that I entered this morning in 5 respect of Mr. Breslin's application on the Cohen testimony 6 issue. 7 Another housekeeping issue on my list is cross- 8 examination list for Mr. DiPascali. 9 MR. FRISCH: It is Mr. Krantz, Mr. Riopelle, Mr. 10 Mehler, Mr. Breslin, and me. 11 THE COURT: Thank you. Is there anything else that 12 you wish to take up with me this morning before we start with 13 the jury? Mr. Riopelle? 14 MR. RIOPELLE: Only that the government had produced 15 an exhibit this morning with print so small that I cannot read 16 it even with my bifocal glasses. But they have agreed to print 17 out a larger version later today, and I thank them for that, 18 your Honor. 19 THE COURT: Sounds like a good thing. 20 The last I heard, the jury were not all present yet. 21 I am going to go back in the robing room. Ms. Ng will check. 22 Once they are here, she will give us all that two-minute 23 warning, and then we will commence when everybody is ready. 24 Thank you. 25 (Recess) SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 10-05286-smbDc4rbon1Case 1:10-cr-00228-LTS Doc 202-1 Filed Document 03/22/19 856 Entered Filed 04/03/1403/22/19 14:16:03 Page 4 of Exhibit179 46801 Pg 5 of 180 1 THE COURT: Ms. Ng, would you please bring the jury 2 in. 3 (Jury present) 4 FRANK DIPASCALI, JR., resumed. 5 THE COURT: Good morning, members of the jury. 6 Welcome back. Please take your seats. Please be seated, 7 everyone. 8 DIRECT EXAMINATION 9 BY MR. ZACH: 10 Q. Mr. DiPascali, when we broke on Monday, we had been talking 11 about your time at Madoff Securities in the '70s and '80s and 12 early '90s. Do you recall that? 13 A. Yes, I do. 14 Q. To refresh everyone's memory, in the 1970s were you working 15 as a clerk for Peter Madoff? 16 A. Yes, I was. 17 Q. In the 1970s and the 1980s, what was Ms. Bongiorno's role 18 at Madoff Securities? 19 A. She was in charge of Bernie's customer business. 20 Q. On Monday you described a little bit about how David Kugel 21 would prepare information for Ms. Bongiorno. Do you recall 22 that? 23 A. Yes. 24 Q. One of the things that you said is that Mr. Kugel would 25 sometimes take that work home with him at night. Do you recall SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 10-05286-smbDc4rbon1Case 1:10-cr-00228-LTS Doc 202-1 Filed Document 03/22/19 DiPascali 856 Entered Filed - 04/03/1403/22/19direct 14:16:03 Page 5 of Exhibit179 46811 Pg 6 of 180 1 that? 2 A. Yes. 3 Q. Would you please describe, first, what the work was that 4 Mr. Kugel was doing for Ms. Bongiorno and also what it meant to 5 take that work home at night. 6 A. She had given him an illustration of the amount of funds 7 and for who arbitrage transactions needed to be set up for. 8 Then he would take the necessary paperwork home with him: 9 Backdated copies of The Wall Street Journal, his internal notes 10 of the terms and conditions of the various arbitrages. 11 Based on the illustrations she gave him as to how much 12 funds needed to be set up and for what groups, then he would 13 use the backdated newspapers and apply the terms and conditions 14 to certain arbitrages and come back to her with this arbitrage 15 can be done for X amount of dollars, and so on and so forth. 16 Q. Did you observe Mr. Kugel taking his work home at night? 17 A. Sure. 18 Q. What did it look like when he would take it home at night? 19 A. His briefcase with a half dozen or a dozen Wall Street 20 Journal C sections. I don't remember the card box being in his 21 briefcase, but he would take home the necessary paperwork, the 22 index cards that he used from his arbitrages, which were on a 23 rack over his right shoulder sitting on an air conditioning 24 ledge. 25 We had this metal rack that was about three foot tall SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 10-05286-smbDc4rbon1Case 1:10-cr-00228-LTS Doc 202-1 Filed Document 03/22/19 DiPascali 856 Entered Filed - 04/03/1403/22/19direct 14:16:03 Page 6 of Exhibit179 46821 Pg 7 of 180 1 where you could flip over each almost metal page.