%PDF-1.4
%
1 0 obj
<<
/Type /Catalog
/Metadata 2 0 R
/Pages 3 0 R
>>
endobj
4 0 obj
<<
/Creator (eCopy, Inc)
/Producer (eCopy, Inc; modified using iText 2.1.7 by 1T3XT)
/ModDate (D:20150423210129-04'00')
/CreationDate (04-23-2015)
>>
endobj
2 0 obj
<<
/Type /Metadata
/Subtype /XML
/Length 5 0 R
>>
stream
application/pdf
eCopy, Inc
2015-04-23T21:01:29-04:00
2015-04-23T17:30:25-04:00
2015-04-23T21:01:29-04:00
eCopy, Inc; modified using iText 2.1.7 by 1T3XT
uuid:fccf68c8-f376-4de0-a1e8-270edb8c354b
uuid:9239132b-5647-4162-9b68-ddfa1b62714b
endstream
endobj
3 0 obj
<<
/ITXT (2.1.7)
/Type /Pages
/Count 6
/Kids [6 0 R 7 0 R 8 0 R 9 0 R 10 0 R 11 0 R]
>>
endobj
5 0 obj
3269
endobj
6 0 obj
<<
/Parent 3 0 R
/Contents [12 0 R 13 0 R 14 0 R]
/Type /Page
/Resources 15 0 R
/MediaBox [0 0 612 792]
/eCpyResolution 150
/Rotate 0
/Annots []
>>
endobj
7 0 obj
<<
/Parent 3 0 R
/Contents [16 0 R 17 0 R 18 0 R]
/Type /Page
/Resources 19 0 R
/MediaBox [0 0 611.5200195312 792]
/eCpyResolution 150
/Rotate 0
/Annots []
>>
endobj
8 0 obj
<<
/Parent 3 0 R
/Contents [20 0 R 21 0 R 22 0 R]
/Type /Page
/Resources 23 0 R
/MediaBox [0 0 612 792]
/eCpyResolution 150
/Rotate 0
/Annots []
>>
endobj
9 0 obj
<<
/Parent 3 0 R
/Contents [24 0 R 25 0 R 26 0 R]
/Type /Page
/Resources 27 0 R
/MediaBox [0 0 611.5200195312 792]
/eCpyResolution 150
/Rotate 0
/Annots []
>>
endobj
10 0 obj
<<
/Parent 3 0 R
/Contents [28 0 R 29 0 R 30 0 R]
/Type /Page
/Resources 31 0 R
/MediaBox [0 0 612 792]
/eCpyResolution 150
/Rotate 0
/Annots []
>>
endobj
11 0 obj
<<
/Parent 3 0 R
/Contents [32 0 R 33 0 R 34 0 R]
/Type /Page
/Resources 35 0 R
/MediaBox [0 0 612 792]
/eCpyResolution 150
/Rotate 0
/Annots []
>>
endobj
12 0 obj
<<
/Length 36 0 R
/Filter /FlateDecode
>>
stream
x+ |
endstream
endobj
13 0 obj
<<
/Length 37 0 R
>>
stream
q
q
612.00 0.00 0.00 792.00 0.00 0.00 cm
0.00 0.00 0.00 rg
/Im7 Do Q
Q q
BT
3 Tr
/F8 12.20 Tf
100 Tz
77.76 710.88 TD
(Max Folkenflk, Esq.) Tj
/F8 12.77 Tf
0.00 -13.92 TD
(FOLKENFLIK & McGERITY LLP) Tj
/F8 12.19 Tf
-.48 -13.44 TD
(Attorneysfor the Fastenberg Intervenors) Tj
/F8 11.62 Tf
1.44 -13.92 TD
(1500 Broadway) Tj
/F8 11.17 Tf
-.96 -13.44 TD
(21st Floor) Tj
/F8 11.92 Tf
-.48 -13.92 TD
(New York, New York 10036) Tj
/F8 11.76 Tf
0.48 -15.84 TD
(\(212\) 757-0400) Tj
/F9 8.28 Tf
0.00 -11.52 TD
(mfo lkenflik@,filaw.net) Tj
/F8 11.92 Tf
-.48 -41.28 TD
(UNITED STATES DISTRICT COURT) Tj
/F8 11.87 Tf
0.48 -13.92 TD
(SOUTHERN DISTRICT OF NEW YORK) Tj
/F8 11.90 Tf
-.48 -47.04 TD
(BEACON ASSOCIATES LLC I, BEACON) Tj
0.00 -14.40 TD
(ASSOCIATES LLC II, ANDOVER ASSOCIATES,) Tj
/F8 11.92 Tf
0.00 -13.92 TD
(L.P , ANDOVER ASSOCIATES LLC I, ANDOVER) Tj
/F10 11.26 Tf
0.00 -13.44 TD
(ASSOCIATES \(QP\) LLC,) Tj
/F8 11.78 Tf
133.92 -41.28 TD
(Plaintiffs) Tj
/F8 11.42 Tf
-21.12 -26.88 TD
(-vs-) Tj
/F8 11.90 Tf
-113.28 -27.84 TD
(BEACON ASSOCIATES MANAGEMENT CORP.,) Tj
/F8 5.00 Tf
0.00 -13.92 TD
(ANDOVER ) Tj
/F8 11.91 Tf
60.96 0.00 TD
(ASSOCIATES MANAGEMENT CORP.,) Tj
/F8 11.90 Tf
-60.96 -13.92 TD
(INCOME PLUS INVESTMENT FUND, DAVID) Tj
/F8 11.89 Tf
0.00 -13.92 TD
(FASTENBERG, TRUSTEE, LONG ISLAND VITREO-) Tj
/F8 12.01 Tf
0.00 -13.44 TD
(RETINAL CONSULTANTS 40lK FBO DAVID) Tj
/F8 11.69 Tf
0.00 -13.92 TD
(FASTENBERG,) Tj
137.28 -27.84 TD
(Defendants.) Tj
/F10 11.14 Tf
-137.76 -48.96 TD
(X, Max Folkenflik, hereby declare) Tj
/F8 11.50 Tf
360.96 227.04 TD
(14-C1V-2294) Tj
/F10 12.49 Tf
-58.08 -40.80 TD
(DECLARATION OF MAX) Tj
/F10 12.90 Tf
14.40 -13.92 TD
(FOLKENFLIK IN IN) Tj
/F10 12.11 Tf
-16.32 -13.44 TD
(OPPOSITION TO AIJED'S) Tj
/F10 11.89 Tf
6.24 -13.92 TD
(REQUEST FOR A STAY) Tj
/F9 5.00 Tf
-270.24 -172.32 TD
(1. I am a member in good standing of ) Tj
209.76 0.00 TD
(the Bar of ) Tj
51.84 0.00 TD
(New York and of ) Tj
/F8 12.17 Tf
89.28 -.48 TD
(this Court, and) Tj
/F8 12.25 Tf
-387.84 -26.88 TD
(a Partner at the law firm of Folkenflik & McGerity LLP, formerly Folkenflik & McGerity,) Tj
ET
Q
endstream
endobj
14 0 obj
<<
/Length 38 0 R
/Filter /FlateDecode
>>
stream
x%;@_yy
+H%pH|~/dPуJٓ#UArDCx|
; s
aIzuu
eݧs*-
endstream
endobj
15 0 obj
<<
/ProcSet [/PDF /Text /ImageB /ImageC /ImageI]
/XObject 39 0 R
/Font 40 0 R
>>
endobj
16 0 obj
<<
/Length 41 0 R
/Filter /FlateDecode
>>
stream
x+ |
endstream
endobj
17 0 obj
<<
/Length 42 0 R
>>
stream
q
q
611.52 0.00 0.00 792.00 0.00 0.00 cm
0.00 0.00 0.00 rg
/Im14 Do Q
Q q
BT
3 Tr
/F15 11.19 Tf
100 Tz
77.76 709.44 TD
(counsel for Defendant David Fastenberg.1 I make this Declaration In in opposition to the) Tj
/F16 12.23 Tf
0.00 -27.36 TD
(motion of AIGED International LTD \("AIJED"\) for a "stay of enforcement or preliminary) Tj
/F16 12.21 Tf
0.00 -27.36 TD
(injunction" which seeks to prohibit the Beacon Funds from distributing approximately $3.5) Tj
/F17 5.00 Tf
-.48 -27.84 TD
(million to defrauded investors until AIJED's pending appeal of ) Tj
312.96 -1.92 TD
(this Court's order of April ) Tj
/F16 10.24 Tf
132.48 -.96 TD
(8,) Tj
/F17 5.00 Tf
-445.44 -24.96 TD
(2015, is determined. AIJED asserts that it v\\,'ill be "irreparably injured" if distribution of ) Tj
/F16 11.83 Tf
435.84 -2.40 TD
(those) Tj
/F16 12.37 Tf
-435.84 -24.96 TD
(funds is not stopped now. The motion should be denied because AIJED has no risk of) Tj
/F17 5.00 Tf
0.00 -27.84 TD
(suffering any injury if ) Tj
/F16 12.27 Tf
110.40 -.48 TD
(those funds are distributed now, and AIJED's appeal is likely to be) Tj
/F15 11.16 Tf
-110.88 -26.88 TD
(determined before there is any risk at all that Beacon wil not have fW1ds to distribute) Tj
/F17 5.00 Tf
0.00 -27.36 TD
(AIJED's holdback amount to it if ) Tj
/F16 12.22 Tf
166.56 -.96 TD
(the appeal is determined in AIJED's favor.) Tj
/F17 5.00 Tf
-131.52 -26.88 TD
(2. AIJED claims that it will be irreparably injured if ) Tj
/F16 12.19 Tf
282.24 -1.44 TD
(Beacon "distributes the) Tj
/F16 12.32 Tf
-317.76 -26.40 TD
(AIJED Holdback because AIJED could not recover those funds as a practical matter." Presa) Tj
/F16 12.29 Tf
0.00 -27.36 TD
(Decl. at ~ 7. However, there is no showing that AIJED \\vould be required to clawback) Tj
/F15 11.27 Tf
0.00 -27.36 TD
(distributed amounts in order to get paid. The only relevant question is whether Beacon will) Tj
/F17 5.00 Tf
-.48 -27.36 TD
(have the funds to make payment to AIED if ) Tj
/F16 12.38 Tf
217.44 -.96 TD
(the appeal is decided in AIJED's favor. AIJED) Tj
/F16 12.23 Tf
-217.44 -26.88 TD
(has made no showing that Beacon will not have those funds and the irrefutable evidence) Tj
/F15 10.97 Tf
0.00 -27.84 TD
(shows that it wilL.) Tj
/F16 13.03 Tf
35.04 -27.36 TD
(3. AIJED's claim that Beacon has "distributed all currently available funds to) Tj
/F16 12.31 Tf
-35.52 -27.36 TD
(investors" other than "the Holdback Amount and funds reserved to pay for the costs of) Tj
/F16 12.26 Tf
0.00 -27.84 TD
(Beacon's continuing operations" Presa Decl. in Support at 7, is untrue, misleading, and) Tj
/F16 12.36 Tf
-.48 -27.36 TD
(irrelevant. It is untrue because as a result of a recent settlement of a derivative action and a) Tj
/F16 10.00 Tf
0.48 -57.12 TD
(1 Defendant David Fastenberg, appears as Trustee ohhe Long Island Vitreo-Retinal Consultants 40lk FSG David) Tj
/F16 9.94 Tf
-.48 -15.84 TD
(Fastenberg, While not formally parties to the action, as they were the last time, Fasrenberg's counsel also represent) Tj
/F16 9.86 Tf
0.00 -11.52 TD
(approximately 170 other investors in the Plaintiff Beacon Funds.) Tj
/F16 10.56 Tf
246.24 -25.92 TD
(2) Tj
ET
Q
endstream
endobj
18 0 obj
<<
/Length 43 0 R
/Filter /FlateDecode
>>
stream
x%Ƚ0>7PۯupDy~IA%O٫88S'Vqŀ,fAEJ4_σٝK g{ז9ʺK[ĥR+v
endstream
endobj
19 0 obj
<<
/ProcSet [/PDF /Text /ImageB /ImageC /ImageI]
/XObject 44 0 R
/Font 45 0 R
>>
endobj
20 0 obj
<<
/Length 46 0 R
/Filter /FlateDecode
>>
stream
x+ |
endstream
endobj
21 0 obj
<<
/Length 47 0 R
>>
stream
q
q
612.00 0.00 0.00 792.00 0.00 0.00 cm
0.00 0.00 0.00 rg
/Im21 Do Q
Q q
BT
3 Tr
/F22 12.30 Tf
100 Tz
77.28 708.48 TD
(the recent Fifth Interim Distribution by the Madoff Trustee, Beacon has recently received over) Tj
/F23 5.00 Tf
0.48 -27.84 TD
($5.9 milion which can and should also be distributed without any threat of ) Tj
/F22 12.36 Tf
372.48 -1.92 TD
(injury to AIlED) Tj
/F24 10.89 Tf
-372.96 -25.92 TD
(for the reasons described belo\\v.) Tj
/F23 8.79 Tf
36.00 -27.36 TD
(4. It is misleading because Beacon's accounting reserves for ongoing operations) Tj
/F22 12.27 Tf
-36.00 -27.36 TD
(are millions of dollars, and AIJED makes no showing that those reserves will be depleted, and) Tj
/F22 12.37 Tf
-.48 -27.84 TD
(Beacon wil be left without funds to pay AIJED's holdback amount in the unlikely event that) Tj
/F22 12.21 Tf
0.00 -27.84 TD
(such a payment is required.) Tj
/F23 9.06 Tf
36.00 -27.84 TD
(5. Most importantly of all however, AIJED's claim about Beacon's current) Tj
/F23 5.00 Tf
-36.48 -27.36 TD
(resources is irrelevant, because of ) Tj
/F22 12.26 Tf
169.92 -.48 TD
(the viIlual certamty that Beacon will receive much more) Tj
/F22 12.35 Tf
-169.92 -26.88 TD
(money from the Madoff Trustee II the near future, and the virtual certainty of still further) Tj
/F22 12.36 Tf
0.00 -27.36 TD
(distributions in the future. Should AIJED seek expedited treatment for its appeal, the appeal) Tj
/F22 5.00 Tf
-.48 -27.36 TD
(will ) Tj
/F22 12.29 Tf
22.56 -.48 TD
(likely be decided long before there is any risk at all of Beacon running out of funds to be) Tj
/F24 11.48 Tf
-22.56 -27.36 TD
(available for AIJED.) Tj
/F24 12.03 Tf
36.00 -27.84 TD
(6. The Madoff Trustee moved on April 15 for an order approving a Sixth Interim) Tj
/F22 12.50 Tf
-36.00 -27.36 TD
(Distribution to Customers. Annexed hereto as Exhibit A is a true copy of the Madoff) Tj
/F22 12.38 Tf
0.00 -27.84 TD
(Trustee's Motion For An Order Approving Sixth Allocation Of Property To The Fund Of) Tj
/F22 12.25 Tf
0.00 -27.36 TD
(Customer Property And Authorizing Sixth Interim Distribution To Customers \(hereinafter the) Tj
/F22 12.41 Tf
-.48 -27.36 TD
("Sixth Distribution Motion"\). If approved, and there is no reason to believe it will not be) Tj
/F22 12.28 Tf
0.00 -27.36 TD
(approved as the prior five distribution motions were, then over $1.2 Billion will be approved) Tj
/F22 12.35 Tf
0.00 -27.84 TD
(for distribution equaling of 6 883% allowed claims of those qualified to receive distribution.) Tj
/F23 5.00 Tf
-.48 -27.84 TD
(d. at ~~ 41-43. As the Court noted in the Order of ) Tj
/F23 9.02 Tf
256.32 -.96 TD
(October 31,2014, Beacon's allowed) Tj
/F23 5.00 Tf
-256.32 -26.88 TD
(claim is $159,867,924.62. The Sixth Interim distribution to Beacon of ) Tj
/F22 12.35 Tf
350.88 -.96 TD
(in excess of$11) Tj
/F22 8.64 Tf
-103.20 -53.76 TD
(3) Tj
ET
Q
endstream
endobj
22 0 obj
<<
/Length 48 0 R
/Filter /FlateDecode
>>
stream
x%Ȼ@~Z;.j
)l ,/9(A{%C^{qЖ+A3HCJS
;
& S
ayԀuz<q7:)-
endstream
endobj
23 0 obj
<<
/ProcSet [/PDF /Text /ImageB /ImageC /ImageI]
/XObject 49 0 R
/Font 50 0 R
>>
endobj
24 0 obj
<<
/Length 51 0 R
/Filter /FlateDecode
>>
stream
x+ |
endstream
endobj
25 0 obj
<<
/Length 52 0 R
>>
stream
q
q
611.52 0.00 0.00 792.00 0.00 0.00 cm
0.00 0.00 0.00 rg
/Im28 Do Q
Q q
BT
3 Tr
/F29 12.55 Tf
100 Tz
76.80 707.04 TD
(million. The hearing on the Sixth Distribution is set for May 28, 2015. I anticipate that) Tj
/F29 12.22 Tf
0.00 -27.36 TD
(distribution to Beacon will occur in June or July.) Tj
/F30 8.64 Tf
35.52 -27.84 TD
(7. After the Sixth Interim Distribution, the Customer Fund will continue to hold) Tj
/F29 12.40 Tf
-36.00 -27.36 TD
(billions of dollars which will result in further substantial distributions. $2.2 Billion is in) Tj
/F29 12.34 Tf
0.00 -27.36 TD
(reserve with respect to claim determinations which are in litigation. And that is only one side) Tj
/F29 5.00 Tf
0.00 -27.84 TD
(of ) Tj
/F29 12.36 Tf
12.96 0.00 TD
(the equation. Thc Trustee is actively pursuing claw back $1.6 billion in litigation against) Tj
/F29 12.31 Tf
-12.96 -27.36 TD
("net winners" for amounts they withdrew in excess of their "net cquity" in the two years prior) Tj
/F29 12.37 Tf
-.48 -27.36 TD
(to Madoffs bankruptcy, and is seeking a ruling from the United States Supreme Court to) Tj
/F29 12.26 Tf
0.00 -27.84 TD
(allow the claw backs to cxtend for six years prior to the bankruptcy which would add another) Tj
/F30 5.00 Tf
0.00 -28.32 TD
($4.3 billion in claims. See, excerpts from the website of ) Tj
/F29 12.38 Tf
280.32 -.48 TD
(the MadoffTrustee annexed hereto) Tj
/F30 7.87 Tf
-280.32 -26.40 TD
(as Exhibit B at 1 and 3.) Tj
/F30 8.44 Tf
35.52 -27.84 TD
(8. Suffice it to say that AIJED has not met, and on the facts cannot meet, its) Tj
/F29 12.35 Tf
-36.00 -27.36 TD
(burden to show that the Beacon Funds wil not have funds available to them absent a restraint) Tj
/F29 12.18 Tf
0.00 -27.84 TD
(on distribution of the Holdback amounts.) Tj
/F30 8.47 Tf
35.52 -27.36 TD
(9. As to the balance of the hardships, this is not the usual case where withholding) Tj
/F30 5.00 Tf
-36.00 -27.36 TD
(payments during an appeal would pose limited hardship. My clients, and all of ) Tj
/F31 10.72 Tf
391.68 -1.44 TD
(the Beacon) Tj
/F29 12.24 Tf
-391.68 -25.92 TD
(investors, lost many millions of dollars they had and which many of them were counting on to) Tj
/F31 11.29 Tf
0.00 -27.84 TD
(fund their retirements. Worse than that, those who are receiving this current distribution all) Tj
/F29 12.34 Tf
-.48 -27.36 TD
(have not even gotten the amount of their investment back. Those funds may be needed for) Tj
0.48 -27.84 TD
(living expenses. Even if they are not, these injured investors should not be limited as to what) Tj
/F29 12.48 Tf
-.48 -27.36 TD
(they can earn on those funds, which is undoubtedly more than the meager earings of) Tj
/F31 11.06 Tf
0.00 -27.36 TD
(Treasury instruments in the current interest rate environment.) Tj
/F29 10.56 Tf
246.72 -55.20 TD
(4) Tj
ET
Q
endstream
endobj
26 0 obj
<<
/Length 53 0 R
/Filter /FlateDecode
>>
stream
x%;0wԡ58A
T^Vqŀ