Text extracted via OCR from the original document. May contain errors from the scanning process.
From:
Richard Joslin
Sent:
Thursday, March 20, 2014 2:33 PM
To:
Jeffrey Epstein
Subject:
FW: BFP 12/31/2012
There are screenshots =elow. In a nutshell, REM (Toms firm) summarizes all K-1 activi=y on excel spreadsheet. It does
not tie into the tax return.
Non Apollo partnership=K-1 capital account 12/31/2012 - Total $167MM. Tax return balance sh=et shows $145MM.
Assets listed on excel summary not listed on tax return b=lance sheet. Assets on tax return balance sheet not listed on
excel spreadsheet.
There was a book-up in=2007 for Apollo entities — LBF Holdings shown at $851MM 12/31/2012.8t=bsp; Aggregate K-1
12/31/2012 capital account per K-1 is $234MM; per tax r=turn balance sheet $993MM. Some of the K-1's show tax basis
capital vs GAAP (FMV) capital.
Point of this is to ge= financial statements to have a value that is meaningful, eg GAAP and repo=t consistently going
forward. Tom's financial's are a hodgepod=e of 2007 book-up and adjusted only by taxable income 2008 to present and
some partnerships valued possibly at GAAP<=o:p>
Other "factually=challenged" items to follow
Cc: Richard O'Agostino; 'Abel Goce'
I think the answer is =hat there is no correlation between the Sch L (Quiickbooks) balance sheet =nd the excel s/s that
summarizes K-1 investments
Can you explain why th=re are partnerships listed on K-1 summary that are not on Sch L (Quickbook=) - Millenium USA
LP
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There are entities listed on Sch L (Quickbooks) for which there are no K-1's listed on exce= s/s AP SHL Investors — this
appears not to be owned by BFP but is o=ned by LOB; Globe Opp Finc Srvcs.
Can you track down the=original inception values of the LP's (provided to you by us from valuations at inception). The
LBF value of $851,690,121 sta=ds out.
I have not spent any t=me looking at the history.
Thanks
Cc: Richard D'Agostino; Abel Goce
Is there a s/s that ties into the 1065 pro forma bal=nce sheet amount? The excel s/s I have does not tie out to Sch
L.&nb=p; Please advise?
Cc: Richard D'Agostino; Abel Goce
Rich,
The carrying value of =nvestments in Apollo entities shown on the pro-forma tax returns are deriv=d from the
original inception val=es of the LP's (provided to us by client from valuations at in=eption). We booked the opening
values in G/L=/p>
at inception ...in=tial "book" values. We booked the annual net=K-1 changes in total (all LP's) in accts 2702-10 and
2703-10.
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&nbs=;
The non-Apollo investm=nt carrying values were based on original cost and
and were adjusted for =ax items as per K-1's and were adjusted through one account (2130.01=.
We did not make overal= adjustments in BFP, LP G/L for changes in estimated current year-end mark=t values.
Best,
Tom<=p>
THOMAS TURRIN, CPA<=p>
Partner
Raich Ende Malter & =o. LLP
1375 Broadway<=o:p>
New York, New York =0018
Website: www.=em-co.com <http://www.rem-co.com>
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Cc: Richard D'Agostino
I am looking at the files posted to the portal and i= particular the file that summarize K-1 activity. Sch L has in=estments
(Apollo) $993,724,702. The REM spreadsheet shows $234,172,1=6. Is there a s/s that ties into the 1065 pro forma
balance sheet amount?
Same question for non-Apollo investments - $Sch L $1=5,546,984 vs REM s/s $167,115,711
Three screenshots below
&n=sp;
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