EFTA01760241

From: Richard Kahn Sent: Friday, April 26, 2013 5:20 PM To: Jeffrey Epstein Subject: AYH Jeffrey, &nbs=; I have been reviewing the AYH investment as you asked. I =ave spoken on numerous occasions to both Tom and Frank. Tom has been =ery open and attempts to be helpful. Frank, less so, and he keeps asking why =o you want to know? Unfortunately I am still missing =ocuments to give you firm and clear answers. Frank, tells me they don't have the =nswers as the auditors prepared the audited financial statements. This =eems odd to say the least as AYH had to give the auditors work-papers =o prepare financials. On January 23, 2007 a finders fee in the =mount of 253,125 was paid to Island Capital. (frank said that was Andrew entity?) rribsp;Did you have any other agreement with him that I am unaware =f? There is another 247,000 on IGY Ltd and Subsidiaries audited financial statements as a gain on sale of your 50% interest? In 2007, =nbsp;743,071 was paid as interest expense to an affiliate. I believe that this was = pass thru of interest expense with no markup per a line of credit IGY =td had with Banco Popular. My understanding is that this was line of credit costs for the =eriod January 18, 2007 thru May 31 2007 when you were not a partner. Yet =he May 31, 2007 income statement shows that only 412,125 was paid thru May =1, 2007. Not sure why you were responsible for 330,945 (743,071 less 412,125) of interest expense from January - May 2007 when you did not =eceive any of the income during that same period. Unfortunately I have no further info on it. =nbsp; To summarize, though all our records indicate that you and Andrew agreed on = 50 / 50 deal, it is possible that he never told that to his people. If =t were a true 50 / 50 deal then IGY would not have taken out all their =quity of approximately 5,000,000 and you only 250,000. There also would have been =o finders fee, gain on sale of your interest and questionable leasing =ommissions on tenants whose credit worthiness was only approved by the same people =aking the lease We have never been in this position and I know =hat Andrew is your trustee. In answer to your question what is there =o be done going forward I would suggest that they return your equity and lets =all it a day. The more I inquire about the fact patterns surrounding your =nvestment the more unhappy it makes me. Alternatively, maybe negotiating with =anco Popular to write down its loan by approximately 5-8 million may allow =GY to recover and recapitalize. Richard Kahn HBRK Associates Inc. 575 =exington Avenue, 4th Floor, New York, New York 10022 tel fax cell EFTA_R1_00064454 EFTA01760241