EFTA02582521

From: Jeffrey Epstein <[email protected]> Sent: Thursday, March 20, 2014 3:03 PM To: Richard Joslin Subject: Re: FW: BFP 12/31/2012 has he explained the negative asset notation On Thu, Mar 20, 2=14 at 7:32 AM, Richard Joslin > wrote= 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.<=> </=pan> 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. </=pan> There was a book-up in=2007 for Apollo entities — LBF Holdings shown at $851MM 12/31/2012.&=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. <=p> </=pan> 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 </=pan> Other "factually=challenged" items to follow </=pan> From: Richard Joslin Sent: Thursday, March 20, 2014 8:57 AM To: 'Thomas Turrin'; 'Abel Goce' Cc: Richard D'Agostino; 'Abel Goce' Subject: RE: BFP 12/31/2012 EFTA_R1_01760204 EFTA02582521 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 </=pan> Can you explain why th=re are partnerships listed on K-1 summary that are not on Sch L (Quickbook=) - Millenium USA LP There are entities lis=ed 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 LDB; Globe Opp Finc Srvcs. </=pan> 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. </=pan> I have not spent any t=me looking at the history. </=pan> Thanks</=pan> </=pan> </=pan> 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? </=pan> From: Thomas Turrin (mailto:[email protected] <mailto:[email protected]> j 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, c/=pan> 2 EFTA_R1_01760205 EFTA02582522 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 at inception ...i=itial "book" values. We booked the annual ne= K-1 changes in total (all LP's) in accts 2702-10 and 2703-10. &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=. </=pan> We did not make overal= adjustments in BFP, LP G/L for changes in estimated current year-end mark=t values. </=pan> Best, </=pan> Tom </=pan> THOMAS TURRIN, CPA</=> Partner Raich Ende Malter & =o. LLP 1375 Broadway New York, New York =0018 Website: www.rem-co.com <http://www.rem-co.com> </=pan> 3 EFTA_R1_01760206 EFTA02582523 4=pan> </=pan> From: Richard =oslin Sent: Tuesday, March 18, 2014 10:34 AM To: Thomas Turrin; Abel Goce Cc: Richard D'Agostino Subject: BFP 12/31/2012 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 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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