Case File
efta-efta01098452DOJ Data Set 9OtherTimcstamp: 2+22/2011 11:33 AM CDT
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DOJ Data Set 9
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efta-efta01098452
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Timcstamp: 2+22/2011 11:33 AM CDT
AFFIDAVIT OF TODD C. BUILIONE
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK)
Todd C. Builione, being duly sworn, deposes and says:
1.
I am over twenty-one years of age and am competent to testify to the matters stated
herein because I have personal knowledge of the facts and statements in this affidavit.
Each of the facts and statements is true and correct.
2.
In May 2005, I became the Chief Operating Officer of Highbridge Capital Management,
LLC ("Highbridge"). I reported to Glenn Dubin ("Dubin"), the Chief Executive Officer
of Highbridge.
3.
Highbridge had a significant amount of money that was managed by Daniel B. Zwim
("Zwim") and his investment management company, D.B. Zwirn & Co, L.P. As well,
Dubin and his partner, Henry Swieca, owned a significant portion of D.B. Zwim & Co.,
L.P.
4.
Financial Trust Company, Inc. ("FTC"), which I understand was owned by Jeffrey
Epstein, was an important client of Dubin and Highbridge, and I understand that FTC had
made the majority of its substantial investment in the D.B. Zwirn Special Opportunities
Fund, L.P. ("Fund"), when the Fund was under Highbridge's management and Zwim was
an employee of Highbridge.
5.
During the Fall of 2006, I learned that certain accounting irregularities were uncovered at
D.B. Zwim & Co. The irregularities impacted both the Highbridge account and the funds
that D.B. Zwim & Co. managed.
6.
In late October 2006, Dubin told me that Epstein was very nervous about the revelations
of the issues at Zwirn's management company. Dubin told me that Epstein was
demanding to withdraw FTC's entire investment in the Fund. Dubin explained that
Epstein was adamant about his demands.
7.
Dubin told me that because Epstein, through FTC, was one of the largest investors in the
Fund, Zwim was worried that news of Epstein's and FTC's withdrawal could precipitate
a wave of additional redemptions from the Fund.
8.
About two weeks after Dubin first mentioned that Epstein wanted to withdraw FTC's
entire investment, Dubin told me that the problem was solved. Dubin explained that
Zwim had convinced Epstein to reduce FTC's withdrawal request to $80 million.
1477550v 1/011585
EFTA01098452
Timcstamp: 2+22/2011 11:33 AM CDT
Todd C. Builione
Sworn to before me this
day of
2011.
(Seal)
Notary Public in and for
THE STATE OF NEW YORK
1477550v I/011585
EFTA01098453
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