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prepared and distributed the private placement memorandum for LJM2, helped raise approximately$390 million in commitments from investors for LJM2, committed itself to invest $5 million, andestablished an investment vehicle through which 97 Merrill Lynch executives committed to invest$16 million in LJM2. Through its roles, Merrill Lynch understood well that the purpose of LJM2was to permit Fastow and Kopper to profit at Enron’s expense. Merrill Lynch knew these Insiderswere managing LJM2 and that it was formed to transact business with their employer, Enron. TheLJM2 private placement memorandum touted as a central benefit of LJM2 the “dual roles” ofFastow and the other Enron employees who would manage the partnership. LJM078364. So centralwas Fastow’s role in LJM2 that investors were assured that they did not have to make additionalcapital contributions if he no longer served both Enron and LJM2. The private placementmemorandum also offered “superior returns” based upon the Insiders’ “access to Enron’sinformation pertaining to potential investments.”553. Merrill Lynch also knew from experience that the Insiders used LJM2 to effectuatetheir breaches of fiduciary duties to Enron. LJM2 was the vehicle the Insiders used in 2000 to fulfilltheir (deliberately unwritten) promise to Merrill Lynch to take it out of the Nigerian Bargetransaction within six months. The purchase price for that buy-out was not negotiated; instead,LJM2 paid the rate of return agreed by the Insiders at the outset of the transaction six months earlier.g. CSFB knowingly assisted the Insiders in misstating Enron’s financialcondition.554. CSFB’s role in the Insiders’ scheme to manipulate Enron’s financial statements wassignificant – both before and after November 3, 2000, when CSFB became affiliated with DLJ (nowPershing). CSFB designed, financed and/or implemented at least 50 financial transactions involvingSPEs. CSFB knew the Insiders were using these transactions improperly to inflate cash flow fromoperations and disguise debt on Enron’s financial statements. CSFB’s active participation in the604041v1/007457-184-