BAKER & HOSTETLER LLP 45 Rockefeller Plaza New York, New ...

10-04285-brl Doc 127 Filed 08/17/12 Entered 08/17/12 14:29:55 Main Document
Pg 69 of 133
o Authorized Luxalpha’s financial statements, despite knowing they did not disclose
BLMIS’s role as actual custodian and asset manager (Pergament Decl. Exs. 70-72; see,
e.g., Pergament Decl. Ex. 48.)
o Authorized quarterly resolutions stating that monitoring of Luxalpha was performed and
no “significant irregularities” were found (Pergament Decl. Exs. 73-81.)
o Authorized payments on behalf of Luxalpha, including fees to UBS entities for official
portfolio management services provided to the fund (Pergament Decl. Ex. 16.)
o Served on “Advisory Committee” for UBSTPM that was charged with UBSTPM’s
portfolio management duties for Luxalpha (Pergament Decl. Ex. 54 at LuxAlpha 00699,
00704.) Hondequin’s employer UBS SA responsible for “any remuneration” received in
connection with this role (Id. at LuxAlpha 00702.)
o Participated in post-BLMIS collapse board meetings and decisions regarding Luxalpha
(Pergament Decl. Exs. 82-86.)
o Signed two customer claims on behalf of Luxalpha (Pergament Decl. Exs. 20 at 4; 21 at
4.)
� Hermann Kranz
o Served as director of Luxalpha from inception in February 2004 through liquidation in
April 2009 (Am. Compl. 40.) Was a high-level UBS SA employee during this time
(See id. 40; Kranz Decl. 4 [Bankr. S.D.N.Y. ECF No. 113.])
o Authorized Luxalpha’s opening of its customer account with BLMIS in New York
(Pergament Decl. Ex. 8 at 3.)
o Approved Luxalpha’s delegation of asset management authority to BLMIS through
authorization of the “Trading Authorization Limited to Purchases of Sales and Securities
and Options” between BLMIS and UBS SA (Id. at 4; see Pergament Decl. Ex. 9 at 7–9.)
o Facilitated UBS SA’s banking interface with BLMIS, asking UBS SA’s helpdesk to
“Please open [the Madoff account] immediately!” (Pergament Decl. Ex. 87 at 2.)
o Approved Luxalpha’s delegation of custodial authority to BLMIS through resolution
authorizing that “the assets of the Fund be held by the Custodian for the fund either with
itself and with a US registered broker-dealer” (Pergament Decl. Ex. 8; see Pergament
Decl. Ex. 6; see also Pergament Decl. Ex. 9 at 18.)
o Authorized Luxalpha’s sales prospectuses that concealed BLMIS’s role as actual
custodian and asset manager (Pergament Decl. Exs. 8, 12; see, e.g., Pergament Decl. Ex.
10.)
49