EFTA00731279Set 9
2006-10-0447p12,057w
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
X
PERRY A. GRUSS,
09 cv 6441 (DC)
Plaintiff, ECF CASE
v.
ANSWER AND COUNTERCLAIMS OF
DANIEL B. ZWIRN, D.B. ZWIRN ... Paragraph 3, except admit that for a period of time,
Plaintiff Perry A. Gruss ("Gruss") was a partner in the Company and a member of DBZLLC and
was the Chief ... Financial Officer and Chief Administrative Officer of the Company.
4. Aver that Gruss was effectively terminated from the Company and DBZLLC,
resigning on the verge of being fired
https://www.justice.gov/epstein/files/DataSet%209/EFTA00731279.pdf
EFTA01124872Set 9
2010-06-28110p63,250w
YORK
3 Civil Action No. 09 Civ 6441 (DC)
4 PERRY A. GRUSS,
5
6 Plaintiff,
7 -against-
8
DANIEL B. ZWIRN, D.B. ZWIRN & CO., LP,
9 and D.B. ZWIRN ... June 28, 2010
9:30 a.m.
14
***CONFIDENTIAL***
15
16 DEPOSITION of PERRY GRUSS,
17 the Plaintiff in the above-captioned action,
18 taken by Defendants, held at the offices ... please.
LANKIER SIFFERTA WOK, LIP
11 Mwmcpe for Defendant Daniel& 2onen 10 Perry A. Gruss,
500 Fifth Meese
12 New Pod/. New York 10110
11
BY: DANIEL& REYNOLDS
https://www.justice.gov/epstein/files/DataSet%209/EFTA01124872.pdf
EFTA00696664Set 9
2011-02-244p1,534w
Company, Inc. and Jeepers, Inc.'s (collectively, "Jeepers") request for permission to depose
Perry Gruss, DBZ's former Chief Financial Officer.
We submit that Jeepers has not met its burden ... show good cause why Mr. Gruss's
deposition should be taken, and Your Honor should deny permission to take his deposition.'
In its February 14, 2011 letter, Jeepers tries ... portray Mr. Gruss as indispensible to its
case. A fair reading of Jeepers' claims reveals that the proffered testimony is—at best—
tangential and would lead to a diversion from
https://www.justice.gov/epstein/files/DataSet%209/EFTA00696664.pdf
EFTA01105263Set 9
2004-10-0160p17,309w
knowledge of the improprieties, the law
firm hired to investigate concluded that Perry Gruss personally oversaw and approved of these
transactions. Mr. Gruss was both an officer (Chief Financial Officer ... airplane financing.
Zwim claims that at this point in time, no one other than Gruss and his immediate
subordinates knew about the Interfund Transfers.
In September 2006, Zwim ... other members of management decided to fire Gruss.
Realizing what was about to occur, Gruss quit.
5. The Fund Begins Disclosing to Investors.
Even though the Management Company was aware
https://www.justice.gov/epstein/files/DataSet%209/EFTA01105263.pdf
EFTA01104798Set 9
2004-10-0160p17,336w
knowledge of the improprieties, the law
firm hired to investigate concluded that Perry Gruss personally oversaw and approved of these
transactions. Mr. Gruss was both an officer (Chief Financial Officer ... airplane financing.
Zwim claims that at this point in time, no one other than Gruss and his immediate
subordinates knew about the Interfund Transfers.
In September 2006, Zwim ... other members of management decided to fire Gruss.
Realizing what was about to occur, Gruss quit.
5. The Fund Begins Disclosing to Investors.
Even though the Management Company was aware
https://www.justice.gov/epstein/files/DataSet%209/EFTA01104798.pdf
EFTA01122915Set 9
2002-11-2636p10,457w
discuss available opportunities. Mr. Zwim met regularly with DBZ's Chief
Financial Officer, Perry Gruss, and other members of the treasury group to discuss the financing
of potential investments ... operations
to other senior officers who were experienced in those areas, including Mr. Gruss.
The financing sources included cash on the funds' balance sheets; interest and principal received from
existing ... EFTA01122925
E. Accounting Improprieties at DBZ
From July 2002 until October 4, 2006, Mr. Gruss was DBZ's CFO. During his tenure as
CFO, Mr. Gruss engaged in a variety
https://www.justice.gov/epstein/files/DataSet%209/EFTA01122915.pdf
EFTA00613904Set 9
2002-11-2636p10,478w
discuss available opportunities. Mr. Zwim met regularly with DBZ's Chief
Financial Officer, Perry Gruss, and other members of the treasury group to discuss the financing
of potential investments ... operations
to other senior officers who were experienced in those areas, including Mr. Gruss.
The financing sources included cash on the funds' balance sheets; interest and principal received from
existing ... EFTA00613914
E. Accounting Improprieties at DBZ
From July 2002 until October 4, 2006, Mr. Gruss was DBZ's CFO. During his tenure as
CFO, Mr. Gruss engaged in a variety
https://www.justice.gov/epstein/files/DataSet%209/EFTA00613904.pdf
EFTA01077406Set 9
2011-02-143p1,188w
collectively "FTC") submit this letter
requesting permission to take the deposition of Perry Gruss.
As Your Honor is aware, this dispute centers on FTC's effort to withdraw its investment ... Fund, L.P.
("Fund"). As the former Chief Financial Officer of Zwim's management company, Gruss is a
critical witness to this dispute.
In October 2006, Zwim informed FTC that Gruss ... certain
improper financial transactions to occur, and subsequently, that additional improprieties had
surfaced after Gruss's termination. In response, FTC demanded a withdrawal of its entire capital
account
https://www.justice.gov/epstein/files/DataSet%209/EFTA01077406.pdf
EFTA01110823Set 9
2011-02-114p1,206w
collectively "FTC") submit this letter
requesting permission to take the deposition of Perry Gruss.
As Your Honor is aware, this dispute centers on FTC's effort to withdraw its investment ... Fund, L.P. ("Fund").
As the former Chief Financial Officer of Zwirn's management company, Gruss is a critical
witness to this dispute.
In October 2006, Zwim informed FTC that Gruss ... based on Zwirn's assurance that
the misconduct at the Fund was confined to Gruss, an allegedly rougme employee, and that Zwim
had nothing to do with it. Obviously
https://www.justice.gov/epstein/files/DataSet%209/EFTA01110823.pdf
EFTA00592709Set 9
2011-02-244p1,829w
together, "FTC") for permission to take the deposition of third-party
witness Perry Gruss. As discussed further below, Claimants do not believe that the facts
support, or the law authorizes ... issuance of a subpoena for Mr. Gruss's pre-hearing
deposition.
Background
As Your Honor is aware, Claimants are involved in this matter as the inheritors
of a dispute that ... potentially other relevant
information).
FTC's "Fraud" Theory
The only possible relevance of Mr. Gruss's testimony would be to explore a
"fraud" theory that bears no relevance
https://www.justice.gov/epstein/files/DataSet%209/EFTA00592709.pdf
EFTA01150049Set 9
2011-06-14272p47,421w
regarding the
19 former CFO of our management company.
20 Q. That's Mr. Gruss?
21 A. Yes.
22 Q. You testified in that matter ... what?
18 A. Chris Suan, S U A N, Vasan
19 Kesavan, and Perry Gruss at some point.
20 Q. And do you recall who
21 percentages of ownership each ... DRAFT
COPY ONLY ***
EFTA01150107
60
1 *** UNCERTIFIED ROUGH DRAFT ***
2 Q. Did -- and Mr. Gruss was
3 employed by the firm?
4 A. He was originally employed by
5 Highbridge
https://www.justice.gov/epstein/files/DataSet%209/EFTA01150049.pdf
EFTA00682306Set 9
2011-03-093p946w
investors immediately.
6. The investigation mentioned above focused on the conduct of Perry Gruss ("Gruss"),
who was the Chief Financial Officer for Zwim's management company. After the
investigation ... concluded, Zwim decided that Gruss had to be fired. In late September
2006, Gruss quit before Zwirn could fire him.
7. In mid-October 2006, Zwim called every investor ... explain that Gruss had been fired.
While I do not know what Zwim actually told each investor, Zwim told me that he did
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EFTA00682306
Timcstamp: 3/9/2011
https://www.justice.gov/epstein/files/DataSet%209/EFTA00682306.pdf
EFTA00624864Set 9
2004-11-1838p5,216w
send out a redraft?
2) He responds sarcastically that you should have
Perry Gruss and David Lee field calls from JE,
Bob Rosenkrantz, Michael Sacks, Robert Wood
Johnson Foundation ... moving forward with DBZ &Co on some energy joint
venture?
f. As Mr. Gruss said that was "not good"?
8. X-525 also makes clear that at various times ... need to move what
can be moved to Feb."
2) You also complain to Gruss and Suan that you
didn't appreciate Ms. Kelley's "what?"
comment?
3) Gruss then
https://www.justice.gov/epstein/files/DataSet%209/EFTA00624864.pdf
EFTA00722309Set 9
2010-05-2120p4,025w
operations,
finances, or accounting prompted by or occurring after the departure of Perry Gruss from
involvement with the Fund or any of the Zwim Entities.
36. All witness statements taken ... Fund's operations, finances, or accounting.
37. All documents concerning the termination of Perry Gruss.
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13
EFTA00722321
Timestamp: 8/16/2010 5:38 PM CDT
38. All communications among Counterclaim Respondents ... Gruss concerning
Gruss's termination or the subsequent litigation filed by Gruss against Zwim, including any
pleadings or discovery instruments or documents exchange in discovery.
39. All documents concerning when
https://www.justice.gov/epstein/files/DataSet%209/EFTA00722309.pdf
EFTA00603019Set 9
2011-02-286p1,137w
MOTION
Respondent Jeepers, Inc. has applied for permission to take the
deposition of Perry Gruss, the former Chief Financial Officer of the D.B.
Zwirn Special Opportunities Fund, a hedge fund ... withdrawal request of $80 million.
Respondent further alleges that Zwim had been notified by Gruss of certain
financial improprieties prior to its withdrawal request and that Zwirn
concealed this information ... claim of fraudulent
inducement is without merit as a matter of law. If Gruss had communicated
the existence of certain financial improprieties to Zwim prior to Zwirn's
communications with
https://www.justice.gov/epstein/files/DataSet%209/EFTA00603019.pdf
EFTA00434003Set 9
2011-05-091p252w
From: Lesley Groff
To: Perry A. Gruss
Subject: Re: Hello
Date: Mon, 09 May 2011 19:56:16 +0000
you men with the funny names ... Perry A. Gruss wrote:
> Touché, I made a Davis a Gruss.
> Calling shortly.
> Pe-r A. Grus
> M -
> O -
> On May 9, 2011, at 3:37 PM, Lesley Groff < > wrote ... much
easier!
>>
>>
>> On May 9, 2011, at 3:33 PM, Perry A. Gruss wrote:
>>
>>> I know all too well I get it all the time myself.
>>>
>>>
>>>
>» Perr A. Gruss
https://www.justice.gov/epstein/files/DataSet%209/EFTA00434003.pdf
EFTA01114935Set 9
2009-03-0358p16,017w
early October 2006, the Fund parted ways with its Chief Financial Officer,
Perry Gruss. Mr. Zwim, using a script Schulte had approved, immediately called investors
(including Mr. Epstein) to inform ... them of Mr. Gruss's departure (though he did not tell
them the specific nature of the two accounting improprieties).
Very shortly thereafter, a third accounting impropriety came to light ... Zwirn or any of the other Zwirn Parties
with any wrongdoing, but charged Mr. Gruss with aiding and abetting violations of the
Investment Advisers Act for knowingly misusing his authority
https://www.justice.gov/epstein/files/DataSet%209/EFTA01114935.pdf