Free Declaration - District Court of Arizona - Arizona

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MOLLY M. WHITE, Cal. Bar No. 171448 E-mail: [email protected] Attorneys for Plaintiff Securities and Exchange Commission Rosalind R. Tyson, Acting Regional Director Michele Wein Layne, Associate Regional Director Andrew G. Petillon, Associate Regional Director 5670 Wilshire Boulevard, 11th Floor Los Angeles, California 90036 Telephone: (323) 965-3998 Facsimile: (323) 965-3908 UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. SECURITY TRUST COMPANY, N.A., et al., Defendants. Case No. CV-03-2323-PHX-JWS DECLARATION OF MOLLY M. WHITE SUPPORTING MOTION FOR SUMMARY JUDGMENT AGAINST GRANT D. SEEGER

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DECLARATION OF MOLLY M. WHITE I, Molly M. White, pursuant to 28 U.S.C. §1746, declare: 1. I am an attorney admitted to practice law by the State Bar of

California and by this Court. I am Senior Trial Counsel with Plaintiff Securities and Exchange Commission ("Commission") in the Office of Enforcement. I make this declaration in support of the Commission's Motion for Summary Judgment Against Grant D. Seeger. I have personal knowledge of the each of the matters set forth below, and, if called as a witness, I would competently testify to the facts stated herein. 2. Attached hereto as Exhibit A is a true and correct copy of excerpts

from the deposition of Nicole Geremina, which I took on June 13, 2007. Nicole Geremina was previously known as Nicole Mc Dermott (Geremina Depo., p. 6:2224.). She was the Senior Vice President of Corporate Services while she worked at Security Trust Company ("STC"). (See Ex. 16.) 3. Attached hereto as Exhibit B is a true and correct copy of excerpts

from the deposition of William A. Kenyon, which I took on June 7, 2007. Mr. Kenyon was president and secretary of STC from June of 1998 until November 1, 2003. (Kenyon Depo., pp. 13:25-14:6.) 4. Attached hereto as Exhibit C is a true and correct copy of excerpts

from the deposition transcript of Grant D. Seeger, which I took on June 27, 2007. Mr. Seeger was chief executive officer of STC from 1998 until October of 2003. 5. Attached hereto as Exhibit D is a true and correct copy of the

Complaint that the Commission filed in this action. 6. Attached hereto as Exhibit E is a true and correct copy of the Answer

of Defendant Grant D. Seeger in this action. 7. Attached hereto as Exhibit F is a true and correct copy of a

spreadsheet that William Kenyon used to track dividend payments from STC to its parent company, Convergent Capital Management ("CCM"), and to track the
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dividend payments from CCM to Seeger and Kenyon. The spreadsheet was marked as Exhibit 5 during the deposition of William Kenyon. 8. Attached hereto as Exhibit G is a true and correct copy of a document

showing how Mr. Kenyon calculated the dividends that STC paid CCM. The document was marked as Exhibit 6 during the deposition of William Kenyon. 9. Attached hereto as Exhibit H is a true and correct copy of the

November 10, 1999 Employment Agreement of William Kenyon. The Employment Agreement was marked as Exhibit 8 during the deposition of William A. Kenyon. 10. Attached hereto as Exhibit I is a true and correct copy of the Liquidity

Agreement of William A. Kenyon, showing that Kenyon and Seeger each received Class C shares of CCM. The Liquidity Agreement was marked as Exhibit 9 during the deposition of William Kenyon. 11. Attached hereto as Exhibit J is a true and correct copy of an STC

organization chart dated June 30, 2003. The organization chart was marked as Exhibit 16 during the deposition of William Kenyon. 12. Attached hereto as Exhibit K is a true and correct copy of the audited

financial statements of STC for the year ending December 31, 2000, which was marked as Exhibit 17 during the deposition of William Kenyon. 13. Attached hereto as Exhibit L is a true and correct copy of the audited

financial statements of STC for the year ending December 31, 2001, which was marked as Exhibit 18 during the deposition of William Kenyon. 14. Attached hereto as Exhibit M is a true and correct copy of the audited

financial statements of STC for the year ending December 31, 2002, which was marked as Exhibit 19 during the deposition of William Kenyon. 15. Attached hereto as Exhibit N is a true and correct copy of the Master

Custody Agreement between STC and Hartz Trading Company, and other agreements between STC and Hartz. This collection of agreements was marked as
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Exhibit 20 during the deposition of William Kenyon. 16. Attached hereto as Exhibit O is a true and correct copy of an email

chain dated July 27, 2000. These emails were marked as Exhibit 21 during the deposition of William Kenyon. 17. Attached hereto as Exhibit P is a true and correct copy of an email

chain dated October 10, 2000, wherein Janet Romanski alerts Grant Seeger to her concerns that certain hedge funds are trading after the close of the market at 4:00 p.m. ET. The email chain was marked as Exhibit 23 during the deposition of William Kenyon. 18. Attached hereto as Exhibit Q is a true and correct copy of an email

chain dated October 10, 2000, wherein Janet Romanski alerts Grant Seeger to her concerns that certain hedge funds are trading after the close of the market at 4:00 p.m. ET. The email chain was marked as Exhibit 24 during the deposition of William Kenyon. 19. Attached hereto as Exhibit R is a true and correct copy of the Master

Custody Services Fee Schedule between STC and Hartz Trading Company, showing that STC received a 4% profit sharing fee from Hartz. The fee schedule was marked as Exhibit 28 during the deposition of William Kenyon. 20. Attached hereto as Exhibit S is a true and correct copy of the invoices

that STC sent Hartz Trading. The invoices were marked as Exhibit 29 during the deposition of William Kenyon. 21. Attached hereto as Exhibit T is a true and correct copy of an email

chain in which Jay Marran notifies Grant Seeger that a mutual fund is concerned with market timing activity in its accounts as well as the commingling of nonretirement trades with retirement account trades. The email chain was marked as Exhibit 40 during the deposition of Nicole (McDermott) Geremina. 22. Attached hereto as Exhibit U is a true and correct copy of the Plea

Agreement signed by Grant Seeger on August 30, 2005 in the criminal action
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brought by the New York Attorney General's Office. The plea agreement was marked as Exhibit 58 during the deposition of Grant Seeger. 23. Attached hereto as Exhibit V is a true and correct copy of a transcript

of the plea and allocution of Grant D. Seeger, which occurred on August 30, 2005. The transcript of the allocution was marked as Exhibit 60 during the deposition of Grant Seeger. I declare under penalty of perjury that the foregoing is true and correct. Executed this 26th day of July, 2007, in Los Angeles, California.

/s/ Molly M. White MOLLY M. WHITE

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PROOF OF SERVICE I am over the age of 18 years and not a party to this action. My business address is: [X] U.S. SECURITIES AND EXCHANGE COMMISSION, 5670 Wilshire Boulevard, 11th Floor, Los Angeles, California 90036.

Telephone: (323) 965-3998 Fax: (323) 965-3908 On July 26, 2007, I caused to be served the document entitled DECLARATION OF MOLLY M. WHITE SUPPORTING MOTION FOR SUMMARY JUDGMENT AGAINST GRANT D. SEEGER upon the parties to this action addressed as stated on the attached service list: [X] OFFICE MAIL: By placing in sealed envelope(s), which I placed for collection and mailing today following ordinary business practices. I am readily familiar with this agency's practice for collection and processing of correspondence for mailing; such correspondence would be deposited with the U.S. Postal Service on the same day in the ordinary course of business. [ ] PERSONAL DEPOSIT IN MAIL: By placing in sealed envelope(s), which I personally deposited with the U.S. Postal Service. Each such envelope was deposited with the U.S. Postal Service at Los Angeles, California, with first class postage thereon fully prepaid. EXPRESS U.S. MAIL: Each such envelope was deposited in a facility regularly maintained at the U.S. Postal Service for receipt of Express Mail at Los Angeles, California, with Express Mail postage paid.

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PERSONAL SERVICE: I caused to be personally delivered each such envelope by hand to the office of the addressee. FEDERAL EXPRESS: By placing in sealed envelope(s) designated by Federal Express with delivery fees paid or provided for, which I deposited in a facility regularly maintained by Federal Express or delivered to a Federal Express courier, at Los Angeles, California. ELECTRONIC MAIL: By transmitting the document by electronic mail to the electronic mail address as stated on the attached service list. FAX (BY AGREEMENT ONLY): By transmitting the document by facsimile transmission. The transmission was reported as complete and without error. (Federal) I declare that I am employed in the office of a member of the bar of this Court, at whose direction the service was made. I declare under penalty of perjury that the foregoing is true and correct. /s/ Molly M. White MOLLY M. WHITE

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[X]

Date: July 26, 2007

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SEC v. Security Trust Company, et al. United States District Court - District of Arizona Case No. CV 03-2323 PHX JWS (LA-2781) SERVICE LIST Jess A. Lorona, Esq. Dodge Anderson Mableson Steiner Jones & Horowitz, Ltd. 3003 N. Central Avenue, Suite 1800 Phoenix, AZ 85012-2909 Email: [email protected] Attorney for Defendant Grant D. Seeger

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