From: Jeffrey Epstein <jeevacation@gmail.com>
To: Erika Kellerhals
Subject: Fwd: PPPVUL Product Information
Date: Tue, 09 Apr 2013 20:42:16 +0000
We might have an advantage in st Thomas
Forwarded message
From:
Date: Tuesday, April 9, 2013
Subject: Fwd: PPPVUL Product Information
To: Jeffrey Epstein <jeevacation@gmail.com>
Below from Lou:
This summarizes the opinion that they will write. I shared with Jeffrey that we have not completed our first deal(we
have been in the market for 3 months) and they will write the opinion on each deal. We are happy to put him in touch
with the specific attorney at Mayer Brown if he would like to speak with them. Sorry for any confusion but I believe
that is what my partner Alan was attempting to say. I probably should have mentioned this to Jeffrey yesterday to avoid
confusion.
On Apr 9, 2013, at 2:50 PM, Jeffrey Epstein leevacation@gmail.com> wrote:
Tell him thAt they told me they had an opinion . This is not one
On Tuesday, April 9, 2013, wrote:
Below from Lou Kreisberg
Sent from my iPhone
Begin forwarded
Subject: PPPVUL Product Information
Jeffrey-
As a follow up to our discussions, I wanted to share additional information on the Evergreen PPVUL policy
with you.
Summary information regarding a $1 billion investment in two different policies is attached. The first is a
$500 million 7702(a) compliant policy (Kingswood), and the second is a $500 million 7702(g) compliant
policy (Cedarwood). You'll see that breakeven is achieved in the year following issuance. By year 20, the
after-tax value of the Evergreen policies exceeds taxable account performance by $1.4 billion ($3.8 billion
vs. $2.4 billion). By year 30, the Evergreen policies outperform the taxable account by $3 billion ($7.4
billion vs. $3.4 billion).
EFTA00958059
The above numbers assume the following fees and charges.
Upfront fees consist of the following:
- Upfront charges: $11.5 million (2% on first $100 million, 1.5% on next $100 million, 1% thereafter).
Note consists of approximately $500,000 in legal fees with the balance allocated between the party
arranging for the insured lives and a sales charge
Issue fee: $3.9 million ($300 per life)
DAC tax: $7 million (70 bps)
Ongoing fees consist of the following:
Cost of insurance: charged at standard rates based on the age/sex of underlying insureds
fee: 65 bps per annum
Administrative fee: $100 per life
Our attorneys at Mayer Brown have handled the legal work associated with the structure. In order to
provide an overview of the review and analysis performed to date, I attach a legal summary containing the
following:
I) Summary of Legal Opinions: Provides an overview of tax, insurable interest and ERISA opinions that
will be provided at closing. The opinions are not yet written, but this reflects the scope
2) 7702(g) Opinion Overview: Provides an overview of the legal opinion which will be provided in
connection with the Cedarwood 7702(g) product and the relevant legal analysis
2) Wal-Mart Case: Provides an overview of a well-known case that concerned the issues that arose when
Wal-Mart purchased life insurance policies (commonly referred to as janitor insurance) on the lives of its
employees. The memo explains how the Evergreen programs do not violate the legal principles described
in that case, including insurable interest considerations
3) Recovery Statutes: Explains why the risk is remote that an insured or his estate could bring a successful
claim under a recovery statute
4) STOLI: Provides an overview of Stranger Owned Life Insurance and its relevance to insurable interest
laws. The memo explains how Evergreen is not STOLI and does not violate STOLI legislation
5)
The information contained in this communication is
EFTA00958060
confidential, may be attorney-client privileged, may
constitute inside information, and is intended only for
the use of the addressee. It is the property of
Jeffrey Epstein
Unauthorized use, disclosure or copying of this
communication or any part thereof is strictly prohibited
and may be unlawful. If you have received this
communication in error, please notify us immediately by
return e-mail or by e-mail to jeevacation@gmail.com, and
destroy this communication and all copies thereof,
including all attachments. copyright -all rights reserved
EFTA00958061