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LIST OF EXHIBITS
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Exhibit A: Correspondence between US and Jersey governments establishing the destruction of records by Equity Trust personnel
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U.S. Department of Justice
Filed 10/11/2007
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United States Attorney Northern District of California
11th Floor, Federal Building 450 Golden Gate Avenue, Box 36055 San Francisco, California 94102-3495
(415) 436-7200 FAX:(415) 436-7234
December 12, 2006 BY FEDERAL EXPRESS, EMAIL AND FACSIMILE TO 202/514-0080 Ruth Payne, Esq. Office of International Affairs United States Department of Justice 1301 New York Avenue N.W. Washington, D.C. 20005 Re: Fourth Supplemental Request for Assistance in the Prosecution and Continuing Investigation of Oliver Hilsenrath
Dear Ms. Payne: On August 9, 2006, Paul Joseph sent a third supplemental request to Jersey regarding additional documents that Oliver Hilsenrath's prior attorney, Steve Kalar, sent to me. Those documents (a) came from Equity Trust in Jersey, the Channel Islands, (b) were responsive to our original MLAT request dated November 10, 2003, and (c) were not produced by Equity to the Jersey authorities, and thus were not provided to us. The documents include admissions by trust officers that they had a conflict of interest with Hilsenrath and other trust clients, characterization of the trusts as tax exempt accounts, and possible impeachment material of our main cooperating witness, Klarman. As a result, Equity Trust reviewed its files again, and produced more documents that the Jersey authorities sent to us in November. Following that production, Oliver Hilsenrath provided me with the enclosed court pleading. Attached to that pleading are additional documents that are responsive to our original MLAT request and were not provided by Equity Trust. (Some of the attached documents were provided, and you can tell those documents because they bear the bates range JAG, which shows that they came from the Jersey Attorney General's Office.) According to Oliver Hilsenrath, he has more documents that were provided in civil discovery that Equity Trust did not provide in response to the MLAT request. As I mentioned in my third request, the documents that he identifies are important to the investigation here, and the parties cross-examined witnesses during the depositions about topics in the documents. 1. Description of Evidence Sought. Therefore, I submit this fourth supplemental request for documents that we asked for in our original MLAT requests and that were not provided. As you can see by the court pleading that Mr.
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Letter to Ruth Payne, Esq. December 12, 2006 Page 2 Hilsenrath provided, the allegation is that Equity Trust provided Mr. Hilsenrath's private information in an attempt to give other clients of Equity an upper hand in their litigation against Mr. Hilsenrath. Issues about those clients according to Mr. Hilsenrath's former attorney Steve Kalar are relevant to Mr. Hilsenrath's defense. Accordingly, not only should Equity Trust provide the documents (including any additional documents), but also it should provide an explanation about why documents were not provided in response to our previous MLAT requests. Rebecca Boxall of the Jersey Attorney General's Office sent a supplementary notice to Equity dated August 17, 2006. That notice sufficiently describes the documents that are responsive to our original MLAT requests, so I do not reiterate our request here. You may also refer to Paul Joseph's request to the Attorney General dated August 9, 2006, which reiterates all of our requests for documents. Ms. Boxall is familiar with our request, as we have spent substantial time coordinating with the Jersey authorities about the production of these documents. 2. Depositions. We previously conducted depositions, but depending on how Equity Trust responds we may want to depose the witnesses further. I refer to the witnesses and procedures set forth in our prior request for assistance dated April 19, 2005. 3. Conclusion. Equity Trust has not provided all documents that we requested in our prior requests for assistance. We look forward to receiving the missing information promptly and an explanation for the omission. Because we have a January 29, 2007, trial date, this matter is urgent. We appreciate how helpful the Jersey authorities have been, and how promptly they have been able to respond to our requests in the past. Very truly yours, KEVIN V. RYAN United States Attorney
LAUREL BEELER Assistant United States Attorney Enclosures
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U.S. Department of Justice
United States Attorney Northern District of California
1 lib Fluur, Federal Builtling 450 Golden Gate Avenue, Box 36055 Sun Francisco, Calijurnia 941 02 (415) 436-6765 FAX(415) 436-7234
April 9, 2007 Mr. Oliver Hilsenrath 822 Eastbrook Court Danville, CA 94506 Dear Mr. Hilsenrath: Enclosed is a copy of a letter dated March 5,2007, from Equity Trust in response to the letters I sent them with your exhibits, asking for the file to be reviewed again in response to our MLAT request. Very tnlly yours, KEVIN V. RYAN
Assistant United States Attorney Enclosure
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EOUITY TRUST
%
~quity Trust (Jersey) Limited Equity Trust House, P.O. Box 546 28-30 The Parade. St Helier, JerseyJE4 8XY Channel Islands
Tel
Law Officer's Department Morier House St Helier Jersey JEI 1DD Attn. Rebecca Boxall
2 March 2007
+44 (0) 1534636211 Fax +44 (0) 1534636215 Email [email protected]
Our ref Subject
: JEVNLO
: Investigation of Fraud (Jersey)
Law,1991 -Oliver Hilsenrath
Dear Ms Boxall We refer to our letter dated 29 January 2007. We have now completed a review of our files in relation to the documents exhibited to the Notice of Motion enclosed with your letter dated 3 January 2007, and advise as follows in further response in relation to Exhibit's E, G & H: Exhibit E Whilst we have been unable to confirm whether this document was produced at an earlier date in response to a Production Notice or Supplementary Notice, to the best of our knowledge and belief we belleve that a copy of a version of this document (which does not contain the hand wrltten notes at the bottom of the page) was produced in response to the Supplementary Notice dated 13 October 2005. Exhibit G We have been unable to locate this document on our files and therefore to the best of our knowledge we believe that the document has not been produced by Equity for this reason. Exhibit H We confirm that we have been unable to locate this document on our files and therefore to the best of our knowledge we believe that the document has not been produced by Equity for this reason.
Legal Counsel Equity Trust (Jersey) Limited
Regulated by the Jersey Financial Services Commission and reg~stered under Lhe Financial Services (Jersey) Law 1998 RegistrationNo. 57583
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Exhibit B: Perkins' initial solicitation letter
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P.O. Box 316 Jardine House 1 Wesley Street S t Helier Jersey JE4 8UD Channel Islands
Telephone: 01534 8881 11 Facsimile: 01534 888118 Telex: 4192012JARJSY G
Dr Oliver Hilsenrath 32 Essex Court Round Hill Country Club Alamo CA 94507 USA
14 May 1996 JHPIVJJ
:3
Dear Dr Hilse~ath
I write with further reference to our recent telephone 1996. 1am grateful for the informat' n provided
A
As promised, I now have and the nature of our
A
f the Jardine Matheson corporate structures on. Our group consists of six tius though which we are able to provide gement of a world-wide asset base, having our international clientele. These operating
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direct subsidiary of the Bermuda parent of the Jardine Matheson We believe that tructure itself is of significant appeal and importance to our ultimate connection with the main jurisdictions such as, for or the United Kingdom. We further believe that our international trading background affords a depth of commercial experience, understanding and support to our trust and financial services.
,-
Our parent company, Jardine Matheson Holdings, is, as I am sure you appreciate, an international service-related company incorporated in Bermuda, and headquartered in Hong Kong. Founded in 1832, the group has extensive business interests world-wide, falling into five main areas of financial services, marketing and distribution, engineering and conitruction, property and hotels and transport services. The facilities of the Trust Group are particularly directed towards those individuals, family groups and indeed private companies who hold investments and assets away from the home base. We often find that although there may well be a focus on the merits of investment diversification, less attention is given to the establishment of an effective and efficient holding structure that will provide long term protection.
A Trust Corporation registered in Jersey, Channel Islands. Registered No: 42712
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2
q
CONFIDENTIAL PURSUANT TO SECTION 24 (d)
02693
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Dr Oliver Hilsenrath
14 May 1996
Some of the aspects of trusts that are important in this respect are addressed in the accompanying paper which outlines the principal features of trusts and which may be of interest to you. As you will see from our brochure, our services extend to the incorporation and management of companies established in a wide range of jurisdictions. Our facilities are provided for both investment holding and trading companies and in addition to the maintenance of the necessary statutory records will extend to the full management of the underlying affairs of the company. Also enclosed is a Questionnaire and a Fee Schedule in connection with the incorporation and ongoing administration of a British Virgin Islands registered company. As I explained over the telephone, if we are required to provide full services, this will include the provision of three Directors, all of whom are directors of Matheson Trust Company (Jersey) Limited, the Company Secretary, Nominee Shareholders, the Registered Office in the BVI and Administrative Office here in Jersey. We will establish bank accounts in the name of the BVI company in whatever currencies are required, the authorised signatories of which will again be officers of Matheson Trust Company. It is not our policy to allow third parties to be signatories over bank accounts; neither do we entertain 'mixed' Boards of Directors. There are several reasons for adopting this policy but primarily, we take our responsibilities as directors of the company seriously and all major decisions regarding the company's activities, including the administration of its financial affairs must be clearly seen to rest with the Board.
-
d
"'8
.
In the circumstances you may well ask what recourse you would have if for any reason you were unhappy with our administration of the company's affairs at some future date. I would simply say that, as the actual beneficial owner of the company you have the necessary power to appoint alternative directors in place of our officers and instruct us to transfer the administration to another organisation. A copy of our standard Company Management Agreement is enclosed which I think you will agree clearly sets out both our responsibilities as the administrators of the company and what is required of you as the client.
I believe I also mentioned that the setting up costs and ongoing administration fees for either a Jersey registered or BVI registered company were broadly similar although there are no disclosure requirements in the BVI, whereas if we incorporate a Jersey company the name of the beneficial owner must be given to the local F i c i a l Services Department. Nevertheless, this is not a matter of public record and at the end of the day the choice of jurisdiction is largely down to the client's preference. If you have no particular concerns, I would like to suggest that a BVI company would be most appropriate in your particular circumstances. Turning now to the question of ownership, I note that your children are all minors. Therefore I suggest that you and your wife be named jointly so that, in the event of the demise of one or other of you, the survivor will automatically become the sole owner of the issued share capital of the company and therefore its underlying assets. Once the children come of age, we can review the position. Alternatively, depending on the sums involved, you may wish to contemplate creating a trust into which the company shares could be settled. Please refer to the enclosed paper entitled 'Features of a Trust'. Finally, if the proposed company was to be used for the purpose of investing funds and holding securities, it would be perfectly in order for the directors of the BVI company to appoint an Investment Manager such as the gentleman in New York referred to in your fax. Obviously we would report to you on a regular basis in accordance with guidelines which we would need to establish with you. JAG 01603
CONFIDENTIAL PURSUANT TO SECTION 24 ( d )
,4
3
.
02694
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Dr Oliver Hilsenrath
14 May 1996
I hope that I have addressed the main issues which may be of interest and concern to you at this early stage, although I am sure you will have further questions once you have had an opportunity to consider this letter and the enclosures. I therefore look forward to hearing from you again in due course.
Yours sincerely,
John H Senior Manager
*\
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I
Encl
JAG 01604
CONFIDENTIAL PURSUANT TO SECTION 24 (d)
02695
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Exhibit C: The Equity Trust Tax Wrapper
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In selecting an investment vehicle, many investors often have several significant priorities. These may include:
-
maintaining a tax-efficient structure safety and security of investment capital having some control over investment decisions confidentiality considerations especially with regard t o legitimate but limited disclosure and reporting to the relevant governmental authorities. For the US persons (i.e. US citizens or one considered a US tax "resident") finding an investment product that meets all o f these goals i s rather difficult. US persons are subject to income tax on their worldwide income, that is, they must pay tax on all varieties o f income items regardless of the geographic source. US persons are required to provide detailed information to the US government concerning their interests i n foreign bank accounts and private foreign corporations. A so-called "insurance wrapper" i s a specific insurance fund, which i s designed to enable more investment choice, but no mixing of funds. This concept i s illustrated as follows:Through a tailored "insurance wrapper" package, an investor Policy holder owns can, i n essence, place his own insurance policy asset portfolio into a taxPrivate Insurance contract efficient investment structure, Bankingllnvestment without these assets being mixed with others. The assets Insurance company "owns" so transferred constitute the investment assets premium paid for the insurance policy. In effect, the investment assets are "paid" t o the insurance company as a premium, and the insurer issues an insurance policy t o the owner. Income earned o n the assets will grow tax-free so long as the assets remain "wrapped" within the insurance policy structure, and providing the right insurance vehicle and asset allocation i s used for the relevant country tax benefits. The policy holder may be able to direct investments. The policy may also be able t o pay out life insurance proceeds to a beneficiary tax-free. As with other life insurance policies, the policy can have certain flexible features, for example, the investor can borrow against the policy. lnsurance company opens Investment accounts I I
ENQUIRIES:
Vincent Kwok (2106 9323), loey Lam (2106 9309)~Edith Fok (2106 93191, Brandon Tang (2106 9338), Lisa Cheung (2106 9329) and Irene Chan (2106 9313)
E Q INTERNATIONAL
161FStandardChartered Bank Building, 4-414 DesVoeuxRd Central, Hong Kong Tel +852 2525 5090, Fax +852 2523 5105, E-mait [email protected]
A branch of EQ Corporate Management (HK) Ltd
Thls publication is of a general nature only and Is not intended t o be relied upon as, norto be a substitute for professional advice or in formulating any business decisions without first seeking such advice. Accordingly, the material should beviewed as a general guide, and professional advice should be obtained for specific situations. No liability can be accepted by the Equity Trust group in this respect.
Q 2003 Equity Trust
All rights resewed.
Printed In Hong Kong
If you do notwish to receive further copies of IN-sight, please kindly mark down your company name and fax number on this sheet and then then return by fax on +852 2523 5105.
Page 100 of 275
Hilsenrath Exhibits re Jurisdiction
09/03/2007
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Exhibit D: Melvyn Kalman advertising his skills
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SELECTED COMPANIES
WALBROOK OFFERS INDEPENDENT TRUST AND COMPANY SOLUTIONS
albrook is a leading independent fiduciary services company offering both private client and corporate solutions to a global client base. Established in 1977 by Deloitte and Touche, Walbrook became wholly independent in December 2003 following a successful management buy-out, backed by Hermes Private Equity. Walbrook has offices in Jersey, Guernsey and Isle of Man, and more than £5 billion of assets under administration, valued at cost. The company employs a team of 180 highly qualified professionals with expertise in trust and company management, employee benefit and share trusts, fund management, international executorships, tax, real estate, family offices and investment consulting. Walbrook is regulated by the Jersey, Guernsey and Isle of Man financial services commissions and the business is therefore conducted with the highest regulatory standards. Walbrook focuses on developing close relationships with clients and delivering a quality solution. As a result client matters are structured around geographical areas (Europe, Israel, Far East, United Kingdom and Africa) or specific industries (managed trust companies, real estate solutions, employer solutions, investment consulting and fund management). This ensures that professionals at Walbrook all have a comprehensive understanding of either the clients' home jurisdiction or the industry that they operate in and are therefore · 10 · ISRAEL BRITISH TRADE
W
existing relationships by working as an integral part of the client's overall advisory team. Furthermore our independence allows us to act in the best interests of our clients and ensures that any advice given is objective." In a rapidly changing market and regulatory environment, the teams at Walbrook have the expertise to identify and exploit opportunities and meet the wide-ranging needs of Israeli clients, which includes both corporate and private individuals. Melvyn continues, "Specifically, we have developed a solid reputation for delivering innovative tax solutions. One example is a product originally developed for the UK market, the Protected Cell Solution, which provides clients with a solution to mitigate capital gains tax within an investment portfolio." Walbrook also has the scale and a depth of experience for complex and large transactions and has built up extensive experience in property holding and development structures, mainly in the UK. Melvyn continues, "Israel is a strongly developing market and we are optimistic about its growth prospects. Our focus going forward is to continue to develop our Israeli client base and nurture our long standing relationships with the Israeli business community. " For more information on products and solutions offered by Walbrook, please contact Melvyn Kalman +44 (0) 1534 711111.
Melvyn Kalman, Associate Director of Walbrook
"We have developed a solid reputation in delivering innovative tax solutions"
able to deliver exceptional technical advice where necessary. Over many years, Walbrook has built up a considerable Israeli client base and they undertake regular visits to Israel to meet and advise their clients. They work extensively with third party advisers in Israel and elsewhere, many of whom have referred their clients to Walbrook over the years. Melvyn Kalman, who joined Walbrook last year says, "We value this confidence and seek to enhance
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Exhibit E: Insinger conflict of interest
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Memorandum
To
Celine Gimenez - C.C. Melvvrl Kalman, David Chalmers-Hunt, Peter Zajac John H Perkins
2%July 2000
From
JHP!MFE/COXST
Oliver HiIsenrath and David Ktarman Having identified a potential contlict o f interest the Directors, JHP and MK, have taken advice from Ogiers & LC Masurier concerning our position acting as Officers of various BVI companies, including those of which the above-namcd are the beneficial owners and which entities own shares in U S Wireless Corporation, As a result, we have taken the decision to resign as Oficers of the OH/DK owned companies and we will cease to provide any further services, including administration address, nominee shareholders, signatories over the accounts, etcOH was advised of our decision during a telephone conversation on 27 July and JHP wi!! be writing formally to OHfDK requesting them to nominate alternative officers who we will appoint in our stead. There is, however, anotller option and it mav be that the beneficial owners wil I request us to close down their companies altogether and transfer the assets out. To the best of my recollection, OH beneficially owns Borazon Limited and Oliver Hiisenrath Family Investments Limited and DK owns K S Legal Consultants Limited (and possibly Craiglands Limited?) There are also at least two other entities which were formed last year at the request of DK, namely US Wireless International Inc and another BVI company (name to be identified). In the light of current deve[opments, Ishould be gratefut if Celine \vould ensure that a l l of the companies' book-keeping records are posted 100% to date and also request corpot&e Department to ensure that the statutory records are in order as we will either be transfei~ing these cases out very shortly, or possibly winding them down, as mentioned above. At the same time, Celine please check the outstanding fees' position and advise me of the outcome. Thanks and regards
?
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Exhibit F: Equity's list of Hilsenrath structures and dates of setup
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OLIVER HILSENRATH
INCORP. STRUCK ACTIVITIES ASSETS DATE OFF DATE None held 10.5.96 nla Yes
ITC FEES 01s AT 18.12.00
BVI FEES 01.9
Borazon Limited
(ex Aida)
less unallocated cash o f f 1,282.51 Yes Morgan Stanley All paid
* WC
$810.00
at 18.12.00
Oliver Hilsenrath 26.10.98 nla Family Investments Limited
Star Anise Limited
$15.5M held in bonds
Yes None held
no cash available
,
C513.34
31.399
nla
All paid
Telecom Associates (T.A.) Limited
15.7.97 nla
Yes
None held
£3,332.07 Ibb less unallocated cash of f263.00
M M ~
/
US Wireless
(half owned with D Klarrnan)
+
25.6.99
1.1 1.00
No
None held
E487.54
$1,740.00
/'-
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Exhibit G: Equity letters refusing to give access to funds
21/02 '06 15:09 FAX
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EOUITY TRUST fax
4
~quityrust (Jersey) Limired Equity T ~ sHouse, P.O. Box 546 t 28-30 The Parade, St Helier, Jersey JE4 8XY
Channel Islands
Tel
.
+44 (0) 1534 636211 Fax +44 (0) 1534 636215 C al [email protected] mi
To Fax number From Subject Date
Mr Barry J Portman & Mr Steve G Kalar 004154367706 Mr Grant Brown The Firefly Trust 20 February 2006
I pages . of
1
Dear Mr Portman and Mr Kalar
The Firefly Trusf (the wTrust*~
Iwrite with reference to your fax dated 14 February 2006. From your fax, I note that Mr Hilsenrath does not wish to be represented by a public defender in the criminal proceedings against him the United States and that instead he wishes to retain your firm as private counsel, Clearly, It Is a matter for Mr Hilsenrath as to whom he wishes to appoint to defend him in these proceedings (since the proceedings are against hlm in his personal capacity) and what arrangements he wishes to make to discharge your firm's fees and *st$.
1 confirm that it is the case that Mr Hilsenrath has requested the Trustee (0 make Trust funds available to him in order that he may defend the proceedings against him an'd that the trustee of the Trust has declined to acquiesce to his request. The trustee of the Trust has reconsidered your further request and declines to accede to your request. The Trustee docs not hold the Trust property for Mr Hilsent-ath under a bare ttvst or nominee arrangement and Mr Hilsenrath and Ior any representative of Mr Hilsenrath cannot Instruct the Trustee to adopt a particular course of action in order to beneflt him.
The trustee of the Trust Is the legal owner of the Trust proper* and is obliged by flduclary and statutory duties (inter alia) to act impartially in the interests of all of the beneficiaries of the Trust (in the sense of fairly and disinterestedly) and to preserve and enhance the Trust assets. The trustee of the Trust may exercise its dispositive powers in its absolute.and unfettered discretion so that the trustee is not obliged to disclose its reasons or deliberation process. Finally, there is no question of the Trust's "seizure" of its own assets.
Gra
(Jersey) Limited
The informationcontained in this hwlmlle mwags is ir~lulded for the use of the only persons or entity to whom it is addressedand may conlat~~ i~~lormation Is wnfidcnlid that &d may be legdly privileged and eLempt from disclosure under applicsblulaws. If you read thk message and are no1[he addressee you are notlfiedthat use. dissemindclun, dlslribulan or reproduction of this messlge ir prohlbkd. If you have recelved this mrssake In error, please notify us immediately and return the original mecsage to us.
Regulated by ~hsleney FlnenclalSuvicesCornmlrrbn and raglrlurudurderthc RnancY hwlccs Ueasy) Law 1998
RogblralionNo. 57.583
07/05 '06 09:16 FAX
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EQUITY TRUST fax
L
Equity Trust (Jersey) Limited Equity Tn~st House, P.O. Bux 546 28-30 The Parade, St Helier. Jersey iE4 8XY
Channel islands
Tel
i44 (0) 1534636211 +44(0) 1534 636215 Email infoje(lDequitytrust.com
*
Fax
(
E x number From Subject Date
Mr Bany J Portman & Mr Steve G Kalar 00 1415 436 7706 Mr Grant Brown The Firefly Trust 06 March 2006
I No, of pages
I
Dear Mr Portman and Mr Kalar
The Flretly Trust (the "Trust")
1 write with reference to your fax dated 03 March 2006.
I note your position as an Assistant Federal Public Defender paid by the United States government. Ifurther note your comment that Mr Hilsenrath does not wish to be represented by a public defender in the criminal proceedings against him in the United States.
I relterate the point in my previous fax that it is a matter for Mr Hilsenrath as to whom he wishes to appolnt to defend him in these proceedings and what arrangements he wishes to make to discharge the corresponding fees and costs.
e
Mr Hilsenrath does not have a fixed proprietary interest in the property comprlsed In the Trust fund. He therefore has no entitlement to demand that the Trustee makes any distribution of Trust property to him. Pursuant to the Trusfs (Jersey) Law 1984 (as amended), subject to the terms of the trust and any order of the court (the "Court"),' the Trustee is not under any obligation to disclose his deliberations as to the manner in which he has exercised a power or discretion and the reason for any particular exercise of such power or discretion. Should Mr Hilsenrath, as a beneficiary of the Trust, wish to challenge the resolution of the Trustee not to release funds to him then we advise that he appoints Jersey counsel to make an application to the Court on his behalf accordingly.
Dire or E ity Trust (Jersey) Limited
P
' The court means the Inferior Number of the Royal Court In Jersey
The information contained in this Facsimile message is intended only for the use of Ihe benonsor entltv to whom it is addrsssedand mav contain intormatlon that is confidential hnd may be le&lly privilegedand exempt from dkclosure under applicnblelaws. If you read this musage and-& not ihe addresseeyouarc notifiedthat use,disscminntlon, disbibutlon or reurnductionof this mcsseae is prohibited. Ifyou havc rcwivcd this mcsssac in cnor. notify m inlmediately dnd return the original message to us,
-
b y l a t a d by the Jersey Financial SsrvicssCornmirw'on d w r e a i d undcrtha RmncialSwrku Oersev) Law 1998
&&istsauk No. 57583
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Exhibit xx: Hilsenrath letter to Equity to release funds
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Oliver Hilsenrath
From: To: Cc: Sent: Subject: "A/O Hilsenrath"
Dear Caroline, We are in receipt of your request for payment of tens of thousands of Dollars of fees for the management of the Firefly Trust, a Trust that holds assets for the Hilsenrath family. Hana and I are formally requesting you to distribute all assets of Firefly to us immediately and close the Firefly Trust. We have done so since December 2004 at which point we covered all fees of Firefly and its holdings for about $13,500. If you wish to receive a request (again) by mail or notarized, please let me know. Since December 2004, you refuse to distribute the assets without disclosing to us the reason for which you do so. Hana and I have initiated a formal inquiry through the US Department of Justice with the Jersey Crown Advocate to determine if the US government, as part of an ongoing litigation, has requested a freeze on our trust or if such formal freeze exists in Jersey by the Jersey government and we received a formal transcribed acknowledgement by AUSA Laurel Beeler of the Northern District of California in front of Federal Judge William Alsup that there exists NO freeze on our assets in Jersey. Therefore the freeze on our assets is one that is imposed by Equity Trust for reasons you refused to explain. It is cynical that not only you refuse my family the assets, against our repeated requests, and amid urgent needs that my wife, our children and I have for the funds, but you want to charge us now tens of thousands of Dollars for fees to manage a trust we do not want you to manage for us. In your letter you also threaten us that, not only you refuse for no good reason and no stated reason to distribute our assets to the beneficiaries, but you are now about to destroy the assets to pay yourself fees. In the last 18 months, Hana and I together with our 6 children have done an expensive move from Israel to the US, two of our children had to undergo expensive surgery in the US, another two enrolled in college here in the US and we needed the trust funds to pay for all those not to mention the legal expenses here caused in part by Equity Trust.
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You have no shame, you have no compassion, you and your colleagues shall be forever damned in the eyes of my family, our friends and everybody else who was exposed to your conduct. In conclusion, Hana and I as the adult beneficiaries of Firefly and on behalf of all the Firefly beneficiaries are formally requesting the distribution to us of all assets of Firefly trust. We do not allow you to charge for any expenses and fees for the management of the trust and do not allow you to use any assets, funds or others to pay yourself fees. We do not trust you and we do not want you, now and for the last 18 months to manage any asset of ours. I expect your immediate reply to arrange for the distribution of the assets. We are all looking forward to the day when we can put Equity Trust behind us. Hana and Oliver Hilsenrath. ----- Original Message ----From: "Caroline Bougeard"
10/11/2007
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Exhibit YY: Hilsenrath letter to Equity: you will be sued
Case 4:07-cv-04162-CW
Document 28-3
Filed 10/11/2007
Page 1 of 5 Page 26 of 26
Oliver Hilsenrath
From: To: Cc: Sent: Subject: "A/O Hilsenrath"
Dear Victoria, Thank you for the new draft. I will review and revert shortly. I have no problem with your standard statement as long as Equity is clear of the following: 1. The current deed of appointment and indemnity shall not preclude us from litigating Janvrin et al vs.. Hilsenrath et al (initiated by Equity unbeknownst to us in 2002) including to litigate the counterclaim that is expected to add Equity Trust, Nixon Peabody (your law firm) and others as counterdefendants. 2. The current deed of appointment and indemnity shall not preclude us from claiming that the refusal to distribute assets in the last 2 years was inappropriate. 3. The current deed of appointment and indemnity shall not preclude us from claiming that Euro 40,000 were inappropriately charged out of the sale of our total share in Stansfield as per our sales agreement with Adv. Leonard Judes and as per out trust agreement with him and his management team.*** *** Euro 420,000 obtained through the sale (minus) Euro 308,000 wired to our account on March 31, 2006 (minus) Euro 76,000 that you agreed to distribute now (equals) approximately Euro 40,000. Please let me know how you suggest to memorialize this. Best regards, Oliver. ----- Original Message ----From: "Victoria Loraine"
10/11/2007
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