EFTA02582473

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 From: Richard Joslin Sent: Thursday, March 20, 2014 8:57 AM To: 'Thomas Turrin'; 'Abel Goce' Cc: Richard O'Agostino; 'Abel Goce' Subject: RE: BFP 12/31/2012 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 EFTA_R1_01760095 EFTA02582473 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 From: Richard Joslin Sent: Wednesday, March 19, 2014 12:34 PM To: 'Thomas Turrin'; Abel Goce Cc: Richard D'Agostino; Abel Goce Subject: RE: BFP 12/31/2012 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? From: Thomas Turrin ([email protected] <mailto:[email protected]> Sent: Wednesday, March 19, 2014 12:31 PM To: Richard Joslin; Abel Goce Cc: Richard D'Agostino; Abel Goce Subject: RE: BFP 12/31/2012 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. 2 EFTA_R1_01760096 EFTA02582474 &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> 3 EFTA_R1_01760097 EFTA02582475 From: Richard =oslin [mailto:[email protected]</=>) Sent: Tuesday, March 18, 2014 10:34 AM To: Thomas Turrin; Abel Goce Cc: Richard D'Agostino Subject: BFP 12/31/2012 <mailto:[email protected]> 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; &=bsp; CONFIDENTIALITY STATEMENT=/strong>: The information c=ntained in this electronic communication, including any and all attachments and en=losures, may be privileged and is strictly confidential, intended solely f=r the use of the person(s) identified above to receive this communication.=If you are not the person(s) identified above to receive this communication, you are hereby notified that you may =ot disclose print, copy, disseminate, or otherwise use the information con=ained herein. 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CIRCULAR 230 DISCLOSURE:<=strong> To insure compliance with requirements impos=d by the Internal Revenue Service, we inform you that any tax advice contained =n this communication (including any and all attachments), unless expressly=stated otherwise, was not intended or written to be used and cannot be use= for the purpose of (i) avoiding tax-related penalties imposed by the Internal Revenue Code or (ii) promoti=g, marketing, or recommending to another 4 EFTA_R1_01760098 EFTA02582476 party any transaction(s) or tax•r=fated matter(s) addressed herein. This communication may not be forwarded =other than to the addressee(s) identified above) without our express written consent.</=> 5 EFTA_R1_01760099 EFTA02582477