EFTA00986362.pdf

From: Richard Joslin lb: Jeffrey Epstein <jecvacation(Dgmail.com> Subject: RE: FW: BFP 12/31/2012 Date: Thu, 20 Mar 2014 17:41:12 +0000 [ohne-Images: image001.png; image002.png; image003.png; imagc004.png; image005.jpg; image006.jpg For non-Apollo partnerships, partnerships are stated as cumulative cash contributed less cash distnbuted (ignores items of taxable income/ expense that Increases/ decreases basis) For Apollo partnerships, It Is 2007 book up adjusted for subsequent cash contributed less cash distributed (Ignores items of taxable Income/ expense that Increases/ decreases basis) On BFP financials, underlying partnership taxable Income is lumped Into a single account. So the amounts showing for each investment are neither GAAP value nor tax basis. It is absolutely meaningless. Rich 0 and I are re-booking to GAAP where we have and booking up where we only have tax basis to an estimated FMV. From: Jeffrey Epstein (mallto:jeevacation@gmall.comj Sent: Thursday, March 20, 2014 11:03 AM To: Richard Joslin Subject: Re: FW: BFP 12/31/2012 has he explained the negative asset notation On Thu, Mar 20, 2014 at 7:32 AM, Richard Joslin rote: There arc screenshots below. In a nutshell, REM (Toms firm) summarizes an K-I activity on excel spreadsheet. It does not tie into the tax return. Non Apollo partnership K-1 capital account 12/31/2012 - Total S167MNI. Tax return balance sheet shows S145MM. Assns listed on excel summary not listed on tax return balance sheet. Assets on tax return balance sheet not listed on excel spreadsheet. There was a book-up in 2007 for Apollo entities — LBF Holdings shown at S85 I MM 12/31/2012. Aggregate K-1 12+31/2012 capital account per K-I is S234MNI; per tax return balance sheet S993MM. Some of the K-I's show tax basis capital vs GAAP (FMV) capital. Point of this is to get financial statements to have a value that is meaningful, cg GAAP and report consistently going forward. Tom's financial's arc a hodgepodge of 2007 book-up and adjusted only by taxable income 2008 to present and some partnerships valued possibly at GAAP Other "factually challenged" items to follow From: Richard Joslin Sent: Thursday, March 20,2014 8:57 AM To: Thomas Tustin; 'Abel Croce' Cc: Richard D'Agostino; 'Abel Goce' Subject: RE: BFP 12/31/2012 I think the answer is that there is no correlation between the Sch L (Quiickbooks) balance sheet and the excel sfs that summarizes K-I investments Can you explain why there are partnerships listed on K-1 summary that are not on Sch L (Quickbooks) - Millcnium USA LP There arc entities listed on Sch L(Quickbooks) for which there are no K-I 's listed on excel sts AP SHL Investors - this appears not to be owned by BFP but is owned by LOB; Globe Opp Finc Srvcs. Can you track down the original inception values of the LP's (provided to you by us from valuations at inception). The LEIF value of $851,690,121 stands out. I have not spent any time looking at the history. Thanks From: Richard Joslin Sent: Wednesday, March 19, 2014 12:34 PM To: Thomas Tustin; Abel Go= Cc: Richard D'Agostino; Abel Goo° Subject: RE: BFP 12/31/2012 Is there a sirs that ties into the 1065 pro forma balance sheet amount? The excel &Is I have does not tie out to Sch L. Please advise? From: Thomas Turin Sent: Wednesday, March 19, 2014 12:31 PM To: Richard Joslin; Abel Goce Cc: Richard D'Agostino; Abel Goce Subject: RE: BFP 12/31/2012 Rich, The carrying value of investments in Apollo entities shown on the pro-forma tax returns are derived from the original inception values of the LP's (provided to us by client from valuations at inception). We booked the opening values in G/L at inception ...initial "book" values. We booked the annual net K-I changes in total (all LP's) in accts 2702-10 and 2703-10. EFTA00986362 The non-Apollo investment carrying values were based on original cost and and were adjusted for tax items as per IC-I's and were adjusted through one account (2130.01). WC did not make overall adjustments in BFP, LP G/L for changes in estimated current year-end market values. Best, Tom THOMAS TURRIN, CPA Partner Raich Ende Mailer & Co. LLP 1375 Broadway From: Richard losli Sent Tuesday, March 18, 2014 10:34 AM To: Thomas Turrin; Abel Goce Cc: Richard D'Agostino Subject: 8Fa 12/31/2012 l am looking at the files posted to the penal and in panicular the file that summarize K-I activity. Sch L has investments (Apollo) S993.724,702 The REM spreadsheet shows 4234,172.166. Is there a sts that tics into the 1065 pro forma balance sheet amount? Same question for non-Apollo investments - SSch L 4145,546.984 vs REM s(s $167,115,711 Three screenshots below 2cid:image00 I .png€01CF42D0.A9E28820 EFTA00986363 ;')id:imagc002.png@OICF42DO.A9E28820 EFTA00986364  g)id:imagc003.png€01CF42DO.A9E28820 2 CONFIDENTIALITY STATEMENT: The nfonnenon oEMarcO NM*, electorEccommtrocabm no1RIng NT, at* al ANANNenn mMenOyEure.may be orhikiedwa us since/ omwentot ornerced soot to re Ate oleo pascalel Minified sbo Ioncene111UENTNunalon. ?cm ato AN to permoll) MonlINE atom to ratan Ina amynuneWort you aro norm/ metal rat ox ea aoso pat "0y SmENNiNo. of OINANIA 160 Mo IMNIYMNN =NOME ANNA V la. oro on omMOTOO at AEON Ol To DLMANINNAMENT MOM N Focerm, mb annoncanon and. as suck mo Awe teen aulhonced to dein, Ma common Aloe W mch piremys). mg my/ eadme. cam. cow cuseernroie. or cares, use to rearnmon consente n We amerkmaion sckgylo, My [wrote MEAN, dowry. uns"ortzee eleceolon eta me a MA cormanitsko moils gray promos ons may 130 mrethatie tm MM vs, ham ro tiodHf OonmuiNIMN any plmso Nat/ 000 Aolly tC S00 toeyI at Mal Ebel And Woo To comemANAlon. aNINStm any NV NI Anacilmonm Yd oftionot from 0S compulat of Ow Yednric demos*, Mich you may Amy recened PIP CrfnulCSIM CIRCULAR 239 DISCLOSURE To Insure cOCIINIAMIONNIIONsiflils int.4540 by MO HOMO ROOMY* &AIM se atom )0J trol ant Izt anoo cmairal In thin comerunalon (e‘uving n/ ad NI mracMams), SNOB oxprosay A=4 ONVIVelf4. *Of 00110104:04 or VTIVIA)3 IND Need endErrol IN %Nee lot Me POPOV, of (0 "MON la."46*, Pe-Otte/6 by Um InternalRemy.. Cm* or IN mommrs. roster,. Of rcamendrgeoonow pony any tranoctoMel Imorebtal No/NYtel efleeted Wan This coYmmicebo, myy not to lommOmP (Ow Man to the siftemeeeMidertEed Nome) *41501 os Mnn.venriCinin The information contained in this communication is 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 EFTA00986365 communication in crror, please notify us immediately by return e-mail or by c-mail to irarriti01204MailSQM, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00986366