WAYNE WAYNE PLATTPLATT

• Berenice Kaplan's son-in-law.• Acted as the personal advisor to Berenice Kaplan who

relied on him.  • Experienced investor • Wharton MBA • Seasoned auditor and CPA • Director at Houlihan Lokey responsible for reviewing /

vetting materials and publications • Reviewed all relevant documents • Worked very closely with Serge Richard to select

investments, arrange leverage 

ROLE OF SERGE ROLE OF SERGE RICHARDRICHARD

• Located in Switzerland. • Selected as  an independent fiduciary  trustee by the

Kaplan family  • Relationship with the Kaplan family predates the

disputed investments.  • Signed investment applications • Acknowledged risk of leverage in writing as part of the

SMI applications he signed • Requested a commission / referral fee from Peat

(presumably for his role in selecting the investments and ensuring the purchase)

• Arranged the leverage / selected the lender and the amount borrowed

• Signed and approved all loan documents

INDEPENDENT LEGAL INDEPENDENT LEGAL REPRESENTATIONREPRESENTATION

• Stanley  Barg Esq was the attorney who represented the Kaplan interests 

• Partner of Duane Morris LLP/Philadelphia office • Specializes in international tax law • Specializes in the establishment and maintenance of

international trusts • Specializes in the use of life insurance and structure of

offshore investments   • He designed and oversaw all offshore trusts and

structures   • Independently communicated with the Kaplan Family

without defendants' involvement.  • Relationship with the Kaplan family predates

the  disputed investments by many years

OFFSHORE LIFE OFFSHORE LIFE INSURANCE POLICIESINSURANCE POLICIES

• Stan Barg arranged for the investments to be wrapped in an IRS compliant offshore life insurance policy without the involvement of the defendants

• He selected the life insurance company and the foreign jurisdiction

• The trusts and the policy itself stipulate foreign court jurisdictions

• The life insurance policy designates an asset manager for the policy unrelated to the defendants

• This structure insulates the assets from claims by creditors in the USA

• It also eliminates US income and capital gains taxes • The  Kaplan Family sought the benefits of being

offshore; now they are stuck with the burdens of being offshore.

SUMMARY JUDGMENT  SUMMARY JUDGMENT  WILL BE AFFIRMEDWILL BE AFFIRMED

1. INVESTMENT LOSS CAUSES OF ACTION - NO STANDING TO SUE• The plaintiffs had  more than 2 years to adequately

plead their claims re standing  to sue for investment losses  and produce supporting documentation.

• Their failure to do so resulted in the  trial  court imposing evidentiary sanctions  against them. 

• The  trial  court  was never provided with ievidence establishing plaintiffs' standing to sue for investment losses.

• That right has now expired.

SUMMARY JUDGMENT  SUMMARY JUDGMENT  WILL BE AFFIRMEDWILL BE AFFIRMED

Continued…

2. BORROWING COSTS CAUSES OF ACTION  - BARRED BY THE STATUTE OF LIMITATIONS.• The Kaplan Family was aware  years before filing

suit that the investments were losing money and that leverage could work negatively.  

• The Kaplan Family borrowed money to fund the collateral calls years before filing suit.

• The only reason the  Kaplan Family had to borrow money for collateral calls was because Wayne Platt had borrowed $1..8m from the trust s 

• At the time of the original leverage, the borrowers showed that the family could afford the loans and had substantial assets.

THE ROLE OF THE ROLE OF THE DEFENDANTSTHE DEFENDANTS

• Introduced the investors to the Peat Group who acted as brokers / intermediaries

• Received a finders fee • In the investments where the loans were provided by

the bank introduced by InterGlobe, there were never any collateral calls

• Never acted as financial or investment advisors • Were never provided with any of the information

needed to function in this role (assets, liabilities, needs)

THE TRUE VILLAINS :   THE TRUE VILLAINS :   A. Scottish Mutual InternationalA. Scottish Mutual International

• Provided materials to the Peat Group which were passed on to the investors

• Provided assurances about continuity and stability of annual bonuses

• Failed to keep the basic commitment to With Profits Bond investors of “smoothing” using reserves to maintain relatively consistent bonuses

• Failed to manage the assets in the manner promised in their materials – resulting in liquidation of equities at the bottom of the market and then replacing those with almost exclusively bonds which removed the possibility of recouping market losses

THE TRUE VILLAINS : THE TRUE VILLAINS : B. Serge Richard and the Trustee  CompanyB. Serge Richard and the Trustee  Company

• Failed in the basic duty of any fiduciary • Were aware of the risks • Knew of the family’s needs, other assets and

financial ability to withstand risk

THE KEY DEFENSES THE KEY DEFENSES OF THE DEFENDANTS :OF THE DEFENDANTS :

1. Standing 2. Statute of limitations 3. Nonreliance 4. Unclean hands 5. Estoppel 6. Comparative fault

INDEMNITY CROSS INDEMNITY CROSS COMPLAINT AGAINST :COMPLAINT AGAINST :

• Wayne Platt  (dismissed without prejudice pending appeal) 

• Serge Richard• The  Trustee  Company- Investec