Footnote 8

More documents

Recommendations

Info

COUNT 5(Disallowance of Claims Under Bankruptcy Code Section502(d)) ............................................256B. COUNTS 6 - 19 (Against JP Morgan Chase and Fleet Defendants) . . . . . . . . . 257COUNT 6COUNT 7COUNT 8COUNT 9COUNT 10COUNT 11COUNT 12COUNT 13COUNT 14(Avoidance of the Mahonia Preferential CommodityTransfers) ..........................................257(Avoidance of the Mahonia 548 Commodity Transfers asFraudulent Transfers).................................260(Avoidance of the Mahonia 544 Commodity Transfers UnderSection 544 of the Bankruptcy Code and Applicable StateFraudulent Conveyance or Fraudulent Transfer Law) . . . . . . . . 265(Avoidance of the Chase Preferential Principal and InterestTransfers) ..........................................274(Avoidance of the Chase 548 Principal and Interest Transfersas Fraudulent Transfers)...............................277(Avoidance of the Chase 544 Principal and Interest TransfersUnder Section 544 of the Bankruptcy Code and ApplicableState Fraudulent Conveyance or Fraudulent Transfer Law) . . . 284(Avoidance of the Chase Preferential Purported MarginTransfers) ..........................................297(Avoidance of the Chase 548 Purported Margin Transfers asFraudulent Transfers).................................302(Avoidance of the Chase 544 Purported Margin TransfersUnder Section 544 of the Bankruptcy Code and ApplicableState Fraudulent Conveyance or Fraudulent Transfer Law) . . . 313COUNT 14A (Violation of Automatic Stay) . . . . . . . . . . . . . . . . . . . . . . . . . . 326COUNT 14B (Turnover of Property of the Estate) . . . . . . . . . . . . . . . . . . . . . 328COUNT 14C (Avoidance of Unauthorized Postpetition Transfers) . . . . . . . . 328COUNT 15 (Avoidance of the Chase Preferential Transfer) . . . . . . . . . . . . . 329COUNT 16(Avoidance of the Chase 548 Transfers as FraudulentTransfers) ..........................................330604041v1/007457-viii-
COUNT 17COUNT 18(Avoidance of the Chase 544 Transfers Under Section 544 ofthe Bankruptcy Code and Applicable State FraudulentConveyance or Fraudulent Transfer Law) . . . . . . . . . . . . . . . . . 331(Recovery of the Mahonia Commodity Transfers, the ChasePrincipal and Interest Transfers, the Chase Purported MarginTransfers, the Mahonia/JPMC Postpetition Transfers, theChase Preferential Transfers, the Chase 548 Transfers, andthe Chase 544 Transfers) ..............................333COUNT 19 (Disallowance of Claims Under Bankruptcy CodeSection 502(d))......................................334C. COUNTS 20 - 29 (Against Barclays Defendants) . . . . . . . . . . . . . . . . . . . . . . . 334COUNT 20 (Avoidance of the Barclays Preferential Transfers) . . . . . . . . . . 334COUNT 21(Avoidance of the Barclays 548 Transfers as FraudulentTransfers) ..........................................337COUNT 22 (Avoidance of the Barclays 544 Transfers Under Section 544of the Bankruptcy Code and Applicable State FraudulentConveyance or Fraudulent Transfer Law) . . . . . . . . . . . . . . . . . 340COUNT 22A (Unjust Enrichment) .................................343COUNT 23 (Turnover of Property of the Estate) . . . . . . . . . . . . . . . . . . . . . 345COUNT 24 (Violation of Automatic Stay) . . . . . . . . . . . . . . . . . . . . . . . . . . 346COUNT 25 (Avoidance of Unauthorized Postpetition Transfers) . . . . . . . . 347COUNT 25A (Breach of Contract) .................................347COUNT 25B (Conversion) .......................................348COUNT 25C (Unjust Enrichment) .................................348COUNT 26 (Invalid and Avoidable Setoffs) . . . . . . . . . . . . . . . . . . . . . . . . . 349COUNT 27 (Avoidable Setoffs Resulting in Improvement in Position) . . . . 350COUNT 28 (Recovery of the Barclays Avoidable Transfers) . . . . . . . . . . . . 351COUNT 28A (Avoidance of Unperfected Security Interest in EmissionCredits) ...........................................351604041v1/007457-ix-
Page 1 and 2: ENRON CORP., et al.Reorganized Debt
Page 3 and 4: DEUTSCHE BANK TRUST COMPANYDELAWARE
Page 5 and 6: TABLE OF CONTENTSPageI. NATURE OF T
Page 7 and 8: d. The Insiders engaged in a scheme
Page 9 and 10: (d) Barclays’ improper appropriat
Page 11: (a) LJM1 and the Rhythms Hedging tr
Page 15 and 16: F. COUNTS 42 - 44 (Against Merrill
Page 17 and 18: COUNT 67(Recovery of the Challenged
Page 19 and 20: Steele ............................
Page 21 and 22: REORGANIZED DEBTORS’ FOURTH AMEND
Page 23 and 24: 3. A second large group of transact
Page 25 and 26: these partnerships secret from Enro
Page 27 and 28: approved the employment of Stephen
Page 29 and 30: managed by a new board of directors
Page 31 and 32: 17. Plaintiff and the affiliated en
Page 33 and 34: headquarters at 270 Park Avenue, 35
Page 35 and 36: Germany. Deutsche Bank AG does busi
Page 37 and 38: 55. Defendant Deutsche Bank, S.A. i
Page 39 and 40: 67. Defendant Merrill Lynch Capital
Page 41 and 42: successor, agent, co-conspirator, c
Page 43 and 44: 10. The RBC Defendants92. Defendant
Page 45 and 46: 107. Not Used.108. Defendant Sphinx
Page 47 and 48: 118. Defendant Enron Sterling Credi
Page 49 and 50: 126A. Each of FleetBoston Financial
Page 51 and 52: eports. In these reports and their
Page 53 and 54: Fastow was fired in late 2001 and E
Page 55 and 56: c. Fastow and Kopper orchestrated (
Page 57 and 58: immediately. As part of his plea ag
Page 59 and 60: 3. How The Scheme Workeda. Enron em
Page 61 and 62: could not trade with others in the
Page 63 and 64:
• Funds flow from operations, def
Page 65 and 66:
d. The Insiders engaged in a scheme
Page 67 and 68:
178. Self-interested partnerships -
Page 69 and 70:
specifically, when the relevant tra
Page 71 and 72:
eported the repayment obligation as
Page 73 and 74:
nature of these transactions and/or
Page 75 and 76:
2governs the securitization of fina
Page 77 and 78:
unless independent third parties ma
Page 79 and 80:
211. An actual example: On December
Page 81 and 82:
transactions. The Insiders took the
Page 83 and 84:
LJM2. In doing so, the Insiders rec
Page 85 and 86:
LJM2 (technically, LJM Co-Investmen
Page 87 and 88:
235. From the beginning, Fastow kne
Page 89 and 90:
244. The Southampton transaction ul
Page 91 and 92:
249. By the end of December 1999, f
Page 93 and 94:
threats of no future business or pr
Page 95 and 96:
Fastow’s participation in the LJM
Page 97 and 98:
262. Citigroup’s participation in
Page 99 and 100:
Id. at B-1 (emphasis added).266. Wi
Page 101 and 102:
period, Citigroup completed over 60
Page 103 and 104:
one another and to cause one anothe
Page 105 and 106:
Yosemite IV USD 5/24/01 $775.1 mill
Page 107 and 108:
linked promissory notes to institut
Page 109 and 110:
of which also involved Enron) and o
Page 111 and 112:
and Andersen may have worked togeth
Page 113 and 114:
monetizations became less attractiv
Page 115 and 116:
(3) The minority interest transacti
Page 117 and 118:
CITI-B00393281 (quoted in Exam. III
Page 119 and 120:
issued Irrevocable Letter of Credit
Page 121 and 122:
Citigroup’s own internal descript
Page 123 and 124:
alance sheet. Through Sundance Indu
Page 125 and 126:
[T]he Bacchus transaction was steep
Page 127 and 128:
327. Before the Bacchus transaction
Page 129 and 130:
tier 1 banks.” CITI-SPSI 0036296.
Page 131 and 132:
prepays, two FAS 140s, and one tax
Page 133 and 134:
(1) Chase’s relationship with Enr
Page 135 and 136:
using a proprietary technology. It
Page 137 and 138:
discussion on this about 6 weeks ag
Page 139 and 140:
357. In its complaint against Chase
Page 141 and 142:
it was “purchasing the Natural Ga
Page 143 and 144:
his July 28, 2003 letter to Manhatt
Page 145 and 146:
commodity to JP Morgan Chase) under
Page 147 and 148:
378D. In late November 2001, JPMC d
Page 149 and 150:
Garden State Paper Company, (ii)
Page 151 and 152:
ankruptcy. By the late 1990s, Barcl
Page 153 and 154:
398. The Insiders used Nikita to mo
Page 155 and 156:
agreement but an instrument that wo
Page 157 and 158:
408J. On or about December 7, 2000,
Page 159 and 160:
For example, Colonnade had not been
Page 161 and 162:
420. Upon information and belief, t
Page 163 and 164:
429. On or about October 30, 2001,
Page 165 and 166:
(c)Three million Four Hundred Fifty
Page 167 and 168:
447. Each of the various individual
Page 169 and 170:
that effectively provided Barclays
Page 171 and 172:
464. The Nixon prepay allowed Enron
Page 173 and 174:
All three (Deutsche Bank AG, Banker
Page 175 and 176:
financial statements improperly rep
Page 177 and 178:
customer to report the transaction
Page 179 and 180:
Insiders intended to accomplish the
Page 181 and 182:
497. As part of the transaction, BT
Page 183 and 184:
(3) BT/Deutsche Bank limited its En
Page 185 and 186:
disclosed, “Enron could not have
Page 187 and 188:
511. CIBC knew that in every FAS 14
Page 189 and 190:
understanding of the Insiders’ go
Page 191 and 192:
523. Again, however, before CIBC ag
Page 193 and 194:
able to manipulate and misstate Enr
Page 195 and 196:
achieve accounting objectives, incl
Page 197 and 198:
Complaint in SEC v. Merrill Lynch,
Page 199 and 200:
539. From 1997 through 2001, Merril
Page 201 and 202:
transaction. He also wondered where
Page 203 and 204:
550. Merrill Lynch knew that the 19
Page 205 and 206:
Insiders’ schemes, including its
Page 207 and 208:
(2) LJM1 and LJM2.561. As discussed
Page 209 and 210:
566. CSFB therefore knew the hedge
Page 211 and 212:
proceeds resulting from those share
Page 213 and 214:
(3) The Prepaid Oil Swaps.577. In D
Page 215 and 216:
(4) FAS 140 transactions.(a)Nile583
Page 217 and 218:
or some of the equity investment. C
Page 219 and 220:
equity investment was not at risk.
Page 221 and 222:
App. L. at 22-23 n.81). In his resp
Page 223 and 224:
CSFB colleague two days before givi
Page 225 and 226:
Dominion’s return on Enron-relate
Page 227 and 228:
IV, App. G at 7 & n.23. In addition
Page 229 and 230:
Payments went in a complete circle
Page 231 and 232:
Dominion prepays - as cash flow fro
Page 233 and 234:
619. Toronto Dominion also knew it
Page 235 and 236:
that, as a limited partner in LJM1,
Page 237 and 238:
etween 1997 and 2001, and, as of No
Page 239 and 240:
at 45. In addition to the direct an
Page 241 and 242:
these restrictions, a 39% discount
Page 243 and 244:
een held in LJM1, and RBS’s total
Page 245 and 246:
substantially assisted the Insiders
Page 247 and 248:
RBS compromised by letting the Insi
Page 249 and 250:
easons.” RBS 3141116 (quoted in E
Page 251 and 252:
manipulation” in Enron’s financ
Page 253 and 254:
saw their experiences with Enron-re
Page 255 and 256:
Exam. at 102-03. RBC knew the Insid
Page 257 and 258:
thing. However, we cannot in the do
Page 259 and 260:
earn higher fees, then selling the
Page 261 and 262:
investment that was not at risk and
Page 263 and 264:
transactions in which Merrill Lynch
Page 265 and 266:
TransferorObligorInitialTransferee
Page 267 and 268:
716. On or within one year before t
Page 269 and 270:
717. The transfers identified in th
Page 271 and 272:
TransferorObligorInitial Transferee
Page 273 and 274:
TransferorEnron orENAEnronEnronEnro
Page 275 and 276:
TransferorEnron orENAEnron orENAEnr
Page 277 and 278:
742. By reason of the foregoing fac
Page 279 and 280:
Page 281 and 282:
TransferorEnron or ENAor ENGMEnron
Page 283 and 284:
Page 285 and 286:
765. Upon information and belief, w
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
789. Each of the Chase Preferential
Page 299 and 300:
Page 301 and 302:
Page 303 and 304:
796. Although certain of the Chase
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
transfers; were engaged in business
Page 319 and 320:
823. The payments characterized as
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
840. The Chase 548 Purported Margin
Page 335 and 336:
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Page 345 and 346:
Page 347 and 348:
transactions (“Prepay Obligations
Page 349 and 350:
COUNT 15(Avoidance of the Chase Pre
Page 351 and 352:
871. Enron and/or ENA received less
Page 353 and 354:
Code, those transfers are pled alte
Page 355 and 356:
Page 357 and 358:
902. The Barclays Preferential Tran
Page 359 and 360:
of the security interest that is th
Page 361 and 362:
Page 363 and 364:
921. To the extent that any of the
Page 365 and 366:
Barclays Bank on or about November
Page 367 and 368:
COUNT 25(Avoidance of Unauthorized
Page 369 and 370:
940L. By the Barclays Improper Appr
Page 371 and 372:
949. Pursuant to section 553(b) of
Page 373 and 374:
Page 375 and 376:
the parties could, under certain co
Page 377 and 378:
Page 379 and 380:
y reference.COUNT 33(Avoidance of t
Page 381 and 382:
996. Each of the BT/Deutsche Bank 5
Page 383 and 384:
Transferor Obligor TransfereeEnron
Page 385 and 386:
Transferor Obligor TransfereeEnron
Page 387 and 388:
COUNT 36(Disallowance of Claims Und
Page 389 and 390:
TransferorEnron orENA or ACFIObligo
Page 391 and 392:
TransferorObligorInitialTransfereeo
Page 393 and 394:
COUNT 40(Recovery of the CIBC 544 T
Page 395 and 396:
elieved that they would incur, debt
Page 397 and 398:
1068. The CSFB Preferential Transfe
Page 399 and 400:
1082. Each of the CSFB 548 Transfer
Page 401 and 402:
1095. Each of the CSFB 544 Transfer
Page 403 and 404:
and (b) that CSFB, Pyramid I and/or
Page 405 and 406:
H. COUNTS 50 - 54(Against Toronto D
Page 407 and 408:
Transferor ObligorInitialTransferee
Page 409 and 410:
COUNT 52(Avoidance of the Toronto D
Page 411 and 412:
TransferorEnron or ENAEnron or ENAE
Page 413 and 414:
1135. Upon and information and beli
Page 415 and 416:
TransferorObligorInitialTransferee
Page 417 and 418:
1167. The transfers identified in t
Page 419 and 420:
J. COUNTS 60 - 64(Against RBC Defen
Page 421 and 422:
Page 423 and 424:
1227. The Challenged Transaction Ob
Page 425 and 426:
1232. The Challenged Transaction Ob
Page 427 and 428:
Page 429 and 430:
1242. The Intentional Fraudulent Tr
Page 431 and 432:
1250. The Intentional Fraudulent Co
Page 433 and 434:
Plaintiff’s creditors and conferr
Page 435 and 436:
1265. Plaintiff cannot at this time
Page 437 and 438:
Transferor Defendant continued to h
Page 439 and 440:
communications with investors the I
Page 441 and 442:
1273. As a direct and proximate res
Page 443 and 444:
information about the company’s c
Page 445 and 446:
1287. Insider Causey did not disclo
Page 447 and 448:
1299. Insider Fastow did not disclo
Page 449 and 450:
1310. Insiders Fastow and McMahon d
Page 451 and 452:
June 20011322. The Insiders did not
Page 453 and 454:
Committee meeting on December 13, 1
Page 455 and 456:
Page 457 and 458:
Chase IX Prepay1356. The Insiders d
Page 459 and 460:
Chase XI Prepay1367. The Insiders d
Page 461 and 462:
meetings in and around the time of
Page 463 and 464:
transaction (including a meeting on
Page 465 and 466:
Page 467 and 468:
Page 469 and 470:
despite the fact that the transacti
Page 471 and 472:
Page 473 and 474:
Page 475 and 476:
Page 477 and 478:
the time of the transaction (includ
Page 479 and 480:
1478. The Insiders did not disclose
Page 481 and 482:
time of the transaction (including
Page 483 and 484:
Committee meeting, at the August 1,
Page 485 and 486:
1520. Insider McMahon did not discl
Page 487 and 488:
1999, or the verbal insurances they
Page 489 and 490:
(3) employing transactions with the
Page 491 and 492:
(b)On or about September 17, 1999,
Page 493 and 494:
(a)On or about November 24, 2000, S
Page 495 and 496:
JP Morgan Chase1546. In connection
Page 497 and 498:
1549. In connection with the Chase
Page 499 and 500:
(a)On or about September 13, 2001,
Page 501 and 502:
(a)On or about September 20, 2001,
Page 503 and 504:
(e)In order to fraudulently meet Ar
Page 505 and 506:
(b)On or about March 27, 1997, Thom
Page 507 and 508:
(c)On or about December 29, 1998, R
Page 509 and 510:
(a)On or about December 15, 1998, S
Page 511 and 512:
1578. In connection with the Specte
Page 513 and 514:
(o)On or about March 2, 2001, Rober
Page 515 and 516:
(c)On or about December 8, 2000, Ja
Page 517 and 518:
(a)On or about December 12, 1998, V
Page 519 and 520:
(c)On or about December 13, 1999, D
Page 521 and 522:
(f)On or about November 12, 1999, D
Page 523 and 524:
(i)On or about March 1, 2001, Goss
Page 525 and 526:
1596. Enron’s injuries as describ
Page 527 and 528:
that were financially involved with
Page 529 and 530:
(b) that CSFB, Pyramid I and/or Sph
Page 531:
ENRON CORP., et al.,Reorganized Deb
show all

Footnote 8

Create successful ePaper yourself

Delete template?

Save as template?