Washington, April

---

STATES UNITED DISTRICT

SECURITIES

AND

COURT

DISTRICT OF

JERSEY

NEW

COMMISSION,

EXCHANGE

Plaintiff, vs

SAM

ANTAR,

ALLEN ANTAR, KUSZER,

M.

BENJAMIN

°

and

Defendants, -

ANTAR, KUSZER, ANTAR,

RORI ADAM ROSE

SAM

and

970

and

(201)

OF

TO

THE SIMPSON

E.

RICHARD

A.

Smith

James

G.

Dix

Attorneys

of

Securities

New

Jersey

Jersey

07102

450

Mail

645-2700

(202)

April

Plaintiff

for

and

Fifth

Stop

Washington, Dated:

RS5859

Exchange

Commission

Street New

Simpson

E.

Sarah

Hochberg Attorney

States

Newark,

93-3988

Defendants.

Richard

Counsel:

Broad

No.

MICHELLE ANTAR, ANTAR, SIMON KUSZER, KUSZER, SAM M. ANTAR,

APPENDIX

S.

(NHP)

A.

SAM

DECLARATION

Faith United District

Civ.

:

-

Relief

Local

:

9,

1995

942-4791

Street,

N.W.

4-2 D.C.

20549

.

!

! |

o

David M, Kohane, Esq. (DK (;OLF., 8CHOTZ, MBSE'I.o FORMAN & LEONARD,PA. A

INIOFI•IIONAL

2S

MAIN In'mEET

-

7791)

r.,Olll, O•Tlal•

I-IACXZNSA•I(, NEW JER.qLrt O'lmZ.O000 "

•0114am3oQo

New

Jersey

Counsel

Km.ev.

K.•. K08•

a

kq.

•or

Sa• M.

De•endant

Aucar

qxK. oo2S)

raNK

PARK AVENUE NL•V rome. 12121HH

NL'W

vonx

100o•

It•O

A•to•eyg

UNITED

for

STATES

Defom:•t

Sum

M,

Anta• STATES DZSTaZCT i u•D D•STZlCT OP NEW JEUeY

AMerICA,

OF

C0U•T

s

-

against

-

:

C•'/:.

s

:

:

•n.

I

•UTCSXLL

:

No.

Case

92-34?-2

Ni•ho).as s:r. U.$.D.J.

Politan,

•raa, DefendanC. i

Proposed his

&

Complalnt,

Sam

Koetelanetz

attorne•ra,

Porman

•uterveno:

Leonard, ).

ne

and

respectfully

&

fo•

X.

J•ot•T

:•nk. his

alleges

•

("antar'),

a:•

SchoCz.

Cole,

Co•laint

by and

•n

Intervention

tArougl•

Nelsel, Ithe

follows"

OO2

! o

PRBI',

•TA••

I"I•NA•Y

I

i

I.

Sam

M.

AnZar

sub,!its

('A•ta•"}

this

in

Ccmplalnt

!

of

his

add

to

muppo• 24

(a},

zule of

•51c)

motion

and

Charles

u.S,C.

28

C.

pursuant, to

moD/es

•ecover

•rsuant

intervene"

to

B2042,

and

R.

Dilt.

N.J.

tO

Cir.

Ct.

in opposlcion

Tru•tee/Re•i.ver,

Carellao

Fed.

to

execute

Local

the

co

P.

motion

on

cash

of

Law

,

!

Security

pursuant

setting

forth

relief,

together

Aff.'),

swor•

the

the

Afgidavit

June

17,

1994,

AfE.-'),

wit•

claim

An•ar

and

•he

Affldavi•

to

june

29,

these

the

aud

Mitchell

of

SwOrn

conjunction

A Memorandum

intervention

•he

fmr

wi•h

Kuszer in

sub=itted

§2044•

U.S.C.

basis

to

('B.

Kuszer

28

to

("M.

Aurar

Benjamln

of

1994,

tot

being

are

•pers. I

I--

2.

Sam

having

a

at

717

cit£zen

a

Ocean

•f

the

Aven•e,

of

Sta•e

West

New

Mi•chaI1 defendant

a

in

Crim.

case

•enJemtn

4.

p•esiden•

the 5.

is

Antar •he

New

S•a•e

of

New

v.

M•chell

Jersey.

States

is

a

ciclz+n of

Jersey

and

belief,

the

Sta•e

of

New

York.

(,NTC').

RTG•anagement,,.Inc.

info•mation

On

the

(•HP)•

92-34•-2

Kuszer

of

e•titlediUnited

case

No.

of

citizen

a

Jersey,

End.

I

Aurar,

an•

is

residence

3. a•

M. Antar

Charles

C.

Carella,

Bsq.

°.

("Ca•eZla') 6

qlIK&.

mNm,

COUr•

is

is

and

an a

admitted

attorney

member

of

to

pract£ce

flr•ofCarella,

the

before

eyrie,

uhis

Bain,

L•.

oil•illan,

Cecehi,

S•ewar•

&

Olsteln•

On

appoint%d

Trustee/Receiver

information

and

irlm,4 !

belief,

Mr.

Carella

has

been

am

par•

2 "

003

SBVi' BY'.

5-85

4-

;12:06PM

BYP•"

C,•]•LI3

;

202 842 9581;#

7/23

!

uf

judgment

a

th/s

in

entered

1994.

29,

•r£1

on

cue

and

*

1994

14ty 3,

docketed

o | !

*

On

6.

wi•h

charged

counts

TO•£(a)

, ratil..£r•d,.

£raud,

18

I

(c)

SS1962

&

(d )

Mi•hel!

"

£rau•,

15-

1•78m.

U.$.C. to

.•O violate

the

mail

COmmit Racketeer U.S.C.

18

('RICO"),

&

•ubeequen•lyremanded

was

Antar

and

a•res=ed

•cons•lracy

•c•

0rga•isat£ons

Corrupt

an•

were

O•I•II"•Cy

a•d

S3VI,

Anta•,

§•.341,

U.S.C.

18

U.S.C.

•n•luencea

securi•Les

of

.•

=ogether

Antar•

8

kllen

and

•tchell

1992,

11,

J•ne

Eddie

brothers

h•s

wi•h

about

or

into

!

•he

=O1

On

1

Mitchell

ee•urLty

cash

8,

On

a•ou•

or

sec•d

•S00,000,

at

•u•ar

(the

'Cash

JUne

24,

held

was

=•agie:rate Judge se•

The

Haneke.

Judge

hearing

a ball

1992,

24,

June

about

or

s•gis•ra•e

percen•

Ma:s•all.

Sta•es

o

•7.•

be•Or@

theUnited

o•

custody

Secur•iitY• ) $•

1992.

and

property

by

bail •en

........... :

Bem•amln

a•V•d

•.•ar

I

ICuszer

him

help

to'

from

release

a%count

bank

the,

$1OO,OOO-£ro=

by deducting

An=•ar, s

Nitchel.1

secure

of

h-fG,

¢t•stOdy

executing

;

in

Checks

..=wo-Cash£er's

amount

•he

($50,000

each

o=. $50,000

•or

=

•i•ehelZ

&u•ar's

SSO,O00 for

bail:

•ntar's

•lEen

and

bail},

Io

ma•i•

such

payable

checks

to

the

Clerk

the

o£

New

Jersey

!

Distric•

partial imMm.

Cou=t

repayment

for

use

o£

as

loans

cash which

The

security. Sam

•ntar

had

made

i

•

Ku•zer

complied

wi•h

the

•eques•,

•

forw•ed

represented

monies

the

•o

NTG.

Mr.

Cashier's

OO4

4'

BY:

iI•

;12:06PM

BYPJ•-;

;

842 8581;#

202

•ttorneys,

•nta='=

Allen

and

Mitchell

to

Checks

5-9,5

who

8123

then

|

Clerk

the

wlth

them

deposited

.Court.

the

of

t

I

and

l¢•tchell

9.

Sam

agrepd

Antar

used

monies

the

thaC

to

.

Mitchell

secure

Antz=

Mitchell

which

releage

Ancar's

have

was

to

and

Sam

mtchel•

zQpalment,

were

with

loan

a

c•tinutug

a

al•o

kuta=

respect

to

obltgaCto• Chat

agreed

of

monies,

the

8

would

Afcer

10.

o• aecu=Lug

purpose

]•nCaz'=

M£Cehell

custody.

£z•

release

sole

the

for

used

be

convicted

certain

on

seeur•ties

of

counts

Mitchell

t=ial,

•uw

e•ght-week

an

AnCar

Craud,

mail

and

was

i

conspiracy He

connnlt

mail

to

flfCy

sentenced

was

supervised

years

$3

to

o£

I•/ch

of

was

o=

apply

chess

Chazlee

•9•4,

I,

June

o•der•

an

Cash

Security.

Mitchell

•utam•e

Ss0,000

the

monies

Co

co

a•

•

set

•o•ch

•.ere

in

co

obligationS.

•eet•ut£on

I

rtl.K

¢=cendJ

caze•la

Paragraphs

HCh

¢ealle•ee

and

in

the

for

providing

•.

¢epeet:•

contained

U.S.C.

28

•"ORl•et,7•l•

_ry•TM

inte•venor

Pl•c•pc•ed

allegation

every

a

Carella,

C.

pursuant

•5(e)(•)0

gule

Local

CC.

FIRST 19.

oZ

payment

i

curnovt•

>.

i

for

•0ved

Dist.

N.#.

and

condLCio•

three

!

Tru=Cee/aeceive:, $2044

and

resciCut$o:, da•ed

By motion

•I.

EZCO.

violate

=

order

=£l%ton

a

to

iin•pcisonment

months

one

release,

!conspiracy

and

fraud,

1-11

of

the

Com•laint

full. !

:1.3. II

The

proposed

hak

Lncervenor

Imml

LIS.L

•mt

non-contingent

interest

In

the

Cash

a

direct,

undivided

and

Security. i

4

005

4-

BY:

";•7

;12:0•M

S-•

CARB.t.A BYRNE'-,

;

•2

202

BS811#

B128

I

14.

An

•nCeres•

intervenor's

proposed

The

Cash

•he

i

a11owed

•s

he

unless

i•paired

be

will

Security

intervene.

to

!

is

in•ervenor

p•oposed

The

15.

only

.the

that

parny

can

;

adequately

represent

entiCled

o£

view

lu

•ntervane

to

claim

Fed.

(a).

24

P.

Clv.

It.

is

inCeEvenor

•roposed

to

pursuant

frO=

prejudice

any

proceedings.

these

for•oing.

the

action.

•his

in

eanno•

in

intervention

Antar's 17.

interests

own

TrusCee/Reoe£ve•

The

•G. Mr.

his

I

Proposed

18.

rel•aat•

£ntervenor

each

realleges

arul

and

i

every 1•

as

deposited

monies defendant,

the

of

repaymen•

securing

purposes

asserted

be

llen=my

no

other

fln•

where

than

•he

fo•

levied

oosns

or

that

proceeds

these

over

a

p•ov'l•es

someone

belong:no

bond

po•

to

•5(c)(I)

Rule

Local

Ct.

Dist.

N.J.

19.

Cc•lain•

the

fullo

in

hQre

forth

sen

of

1-17

Paragraphs

in

ontained

allegation

the

a•ainst

defendant. •

U.S.C.

28

20.

tha•

provlde•

2042

enu£•led

•lalmant

any

!

to

any

such

•o

the

United

2•. -

m t

OY'L IMIA,.

n0 nt

uai•tI,

Immll,-umiP

"•

:

•ha

sole

The

o•¢der

an

n.•utes

p6•pose

and

Attorney

States

obr.atn

theretO,

may,

money

of

•o. the

Pe•Inlon

on

•,1

dizec•i•

used

as

allow£ng

Cash

Antar

never

relinquished

his

upon

the

righ•

hi=.

•o

p•n•

no,Ice

and of

pcoof

S•curitywer•

Mitche•l

ku•ar

to

interest

over

these

u•Jt,

I•

•I

couP:

a

loan

secure

used

bail.

fo= Sam

funds.

o•WN qllINIII

mIA•..L,n,

elml

I

I

006

4'

BY:

;12:0•M

8-•

202

;

942

•581;#I0/23

!

view

Zn

entitled

of

the

to

a

foregoing, of

return

p$oposed

the•onies

Sam

±ncerveno=

used

as

Cash

SecuritY.

Chac

requests

"(1) Civ.

inCervenor

proposed

WHSRSFORE,

RiB

•an•ing

respectfully

i

enCered:

be

Order

an

S•An•ar

morion

co

interne

pursuant

to

Fed.

R.

24(a):

P.

!

'(2) recognizingproposed •ighC

of

return

the

Co

$50,000

the

£ntereat

•nCervenor's

together

C•sh Security,

£n

and

with

|

interest1

applicable

(3)

with

denying,

p•eJudi•e,

the

TrusCee/Recelver's

i

moClc•

tO

execute

on

Cash

Securltyp•rsuant

to

28

U.S.C.

gz044: k

/

and

,@NI@I l•Ikt

alto

00"

/

$•

BY:

4-

5-85

;12:07PM

CARLA

;

BYP•

202

842

9•81;#11/23

!

!

(4) or

gramting relief

differenu

as

the

such

in•orvenor

progosed Court

deem just

may

further

other, and

p•oper.

!

Da•ed•

New June

York, 30,

New

York

1994

I

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SCHOTZ, C05E & FORMAN

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States

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50

Politan,

District Courthouse

Floor Street

SEC

:

07102

Jersey

New

Re

Mitchell

vs.

Crim. Dear

The Antar

for

within brief

and

in

issuance As

letter in further of

appears

relief

be

can

Trustee/Receiver defendant

Cash

that

respectfully of

of

from afforded

the him

lays

proper Antar

he

that

motion

execution

submitted

papers

regarding and has Sam

(Mitchell)

the

cash

irrefutable executed M.

M.

claim.

Specifically, in of

when take may made in June

Mitchell

M.

Antar,

to

him

more

application security.

cash

Affidavit

an

a

Sam

by Sam deposit

"loaned"

Antar

signed

of

affidavit

an

of of

intervene

to

Trustee/Receiver's and turnover

the

lieu

An

submitted

the

to

support writ

a

admits

and

no

which

the he

which

$50,000 of Ownership the

Security. ks

It

title

is

opposition

Mitchell

unequivocally cash,

Antar

92-347-2

No.

Politan:

Judge

formal

to

statement

546,

and

Building

Walnut

Newark,

Antar

Judge

was

554

axiomatic the

borrower.

of

ownership

the

owner

that

a

As as

of

the

true

cash.

loan

of

such,

money,

we

when See

Spagnuolo

v.

made,

transfers

1992.

Antar's Mitchell

Bonnett,

16

N.J.

(1955).

O28

Nicholas

Hon.

United

H.

July Page

Judge

1994

5, Two

aside

Putting various could

loans be

the

the of

right

in

produced

the

the

funds

of.documentation

application

to

show

$50,000

possession and court)

the

to

the would

which in

custody,

clerk

dearth

utter

asserted

interest

security in

Politan,

District

States

and none

control be

can

that

beyond

None

of be

can

of

llen in

a

created

third-party

a

devised of the

to

a

States

[

or

cash the

(here

create

United

the

document

no

retention

any

cash:

regarding intervene,

paramount and

the

Trustee/Receiver. The

application is

proceeding semblance

of

advised

of

correct

the

ownership "been changed 7/5/94 faced

the

turnover

record could have in light

to

discussion

of

taking

been

of

loan

does

Ross

M.

at

attempt

to

the

record

of

could

to).

Se___ee when for

Only

application after

regarding

specific

Mitchell his

assert

have

not

4-6.

(and to

since

years

sworn

1994

all ill-

so

even

Paragraphs I,

counsel surface

Antar

were

it now

restitution

Antar's

Sam

submit

June

satisfy M.

that

this

defies

two

to

transaction

A.

Sam

the

court)

we

-

son

(in

the

arquendo,

the

in It

his

and

action of

Richard Trustee/Receiver's

with

he

amended

of

interevene,

to

disingenuous.

any

clerk

(assuming,

partially

restitution)

and that

the

to

Antar

M.

believe

to

cash

Declaration with the

Sam

untimely

logic incapable

and

delivery

of best

at

Antar's

claim

these

to

funds. But

Would

query:

greater

right

Trustee/Receiver? 987 F.2d 543, indeed cannot the cash

546

We

submit

fn.

3

and

than

not,

(8th

as

Cir.

facts

of

undisputed

United

supported 1993):

Sam

be

this

case,

immediate

afforded States

M.

Hiqgins, has

Antar

are

turnover

not,

claim

superior moreover,

any the

or

U.S.v.

by

established

merit

to

lender the

legally

a

The

other

or

funds

demonstrate

security.

sufficient

bank

a

these

to

to

entirely to

the

Trustee/Receiver.

!

Respectfully

i

submitted,

:!

RICHARD

A.

ROSS

[ARR-1798] ARR: cc:

J rp David Paul

Kohan,

Esq.

(via

Weissman, Susan AUSA Steele, Kathryn Keneally,

Marvin Richard

A.

Gersten, E.

AUSA

(via

Simpson,

(via (via

fax) (via

fax)

fax) fax)

fax} (via

•I

fax)

029 CAREI.LA,

BYRNE,

BAIN,

GILFILLAN. PmOP'L•,•IC•I•O,.

CECCHI. •.OIql',:•lA'l'lO•

STEWART

80LSTEIN

I

•

i

87

APR

'95

DISTRICT

•

...........

;•'•

'

....

•

-

X

.....

AMERICA,

OF

against

-

•

i

...................

STATES

UNITED

JERSEY

NEW

OF

P.2

COURT

DISTR•CT

STATES

UNITED

BYRh•

89:86AMC•RELI.A

:

-,'

....

:

-

ANTAR,

MITCHELD

Case

Hon.

Nicholas

Defendant...

.

+YORK

NEW

)

• +.

)

YORK

OF NEW

.

.........

.

I

I.

intervene

R. +Civ.

Fed.

to

the

of

affidavit

this

pursuant

,:

in

support

P.

24

....

says: I

NeW Jersey.

of

State

++

+ ......

and

deposes

sworn,

citizen

a

am

s•bm/t

respectfully

duly

heine

ANTAR,

M.

+

.....

+

SAM

OF

SS,:

:

COUNTY

"

H:+, Politan,

AFFIDAVIT .•A•t M_.+•..+

:. :-

STATE OF

92-347-2

No.

U.S.D.J.

.'.

-•.

Crim.

of

motion

my

(a),

and.+ to

Rule

35(c)

to

recover ]I

monies

pursuant

+2042,

and

Dis•+

N.J.

to

execute

to

"Receiver"),

(the

Trustee/Receiver

and'

,

•

,

++

f

affidavit

2

this if

Z

'

based

are

My sons

were

U.S.C.

28

•to

pursuant

I

D

J

•2044.

The

my

personal

on

Mitchell with

coD/%ection

in

arrested

knowledge.

of

father

the

•

time

the

At

could

provide

their

of

assets

to

be

their

used

"

bail

as

-

.-.

pending

trial.

I

agreed

to

do

"

I

whatever

asked their

obtain •:';

' t

release

.

attorneys

to

"

Antar.

brought

.indictment

an

.arrest,

Allen

and

Antar

..

Court.

this

in

contained

state%•ents

could

+

to

+

my

sons.

I

made

availablm

C.

.

=:

.

U.S

security

cash

on

.......

28

Carella,

C.

Charles

of

motion

the

to

opposition

in

Local

Ct.

my

interest

in

certain

real

help

in

P.3

property

Deal,

in

wks

Z

bail.

told

tlme

that

called

NTG

Kuszer,

is

to

and

•50,000

was

applied

to

it

were

owed

my I

ball

his

was

never

that

and

funds

to

to

balance

the

was

that

money"

no•

money

son

Mitchell

owed

his

violate

ba •l

o•l£ga•

;

•.•

,

•unds on

mine.

stated

that with

connection

he

because

this to

me.

however.

I

•ons, .

the

Rather,

a•d

' :

times.

sons.

has

money

anything,

me

my

in

this

all

release

believed

he

repay

that

was

posted

was

to

of

this

Perhaps

me.

Mitchell

my

at.

sons'

my

either

that that

directed

I

to

mine

be

secure

funds

obligation

an

Would

,!

solely

these

from

son

r

bail,

the

•-hat

understand

I

m•

to

for,

attorneys,

bail.

and

by NTG,

me

the

the

'

owed

$I00,000

sons'

my

these

understand

thought my ,,.

had

he

that

felt

fam£1y

on

understanding

loan

a

this

release

and

that

understood

he

to

lend

not

6.

to

to

considered

I

always

was

respond

repay

bail.

S.

did

I

bail.

would

he

Mitchell's

to

Benjamin

that

take

me

company

a

knew

to

sons.

my to

Z

Kusser

available

specifically

used

be

applied

to

by

me

My son-ln*law,

and

NTG,

request

their

Allen's

funds

The

of

of

and

available

to

owed

loan

a

each

readily

most

sufficient,

not

for

posted

("NTG").

Ben

it

securing

of

purpose

my

make

to

of

Inc.

Instructed

Z

NTG

at

be

funds

form

the

wai

their

for

security

as

property to

of

pzesldent me

real

source

used

be

to

needed

Management,

emergency.

by

this

in

was

the

loan

this

that

The

4. at

Jersey,

amours

additional

that

New

I

trusted Z

i

.....

:

a!w•.•s !i i;i i

urtli.-:;

the

C

I

031

B7

.qPR

'95

86AM

89:

7.

attention

posting

real that

my

sons' have

sons' I

that

money I

was

never

me

i

were

provided. I

the I

any

documents

was

told

was

in

by my

made.arrangements

however,

intended,

with

necessary.

Z

and

needed,

the

connection

executed

execute

to

called

in I

told

that

has

executed

bail.

required

was

Receiver I

sons'

attorneys

money

provided.

money

the that

my

the

with

attorneys

that

for

that

connection

P.4

documents

to

property

informed

never

BYRhE

understand

I

Court's

documents

CAR•

to

give

that

was

to

up

my I

rights in

this

to

with

connection

this

to

Court

It

money.

was

Mitche•1

direct

that

and

is

Antar's this

$50,000

my bail.

I

returned

be

money

respectfully to

ask

me,

----

"S•

M.

ANTAR | *

Sworn this

No•ry

to

before

31st

day

of

Au•st,

*

I.

me

1994

Public

ANN'•0•N0 Pu•,, St•e • r• Y•k No. 43471301;g Qualif'•,•b Ri•mo•l CouP/ Term Apn'l3o, zs,J.6.

/•ry

3

posted'

U.S.A.

v

ANTAFI

June

PAGE 1 TO

CONDENSED

Tdal

25, 1993

TRANSCRIPT

PAGE 141

AND

PREPARED

Stanley

B.

Newark, NJ Phone:

CONCORDANCE

BY:

R•nan,

Official Court

Tramlcdpt, Volume

C.S.R.

Reporter

07102 201-643-2456

8

U.S.A.

June

ANTAR

v

p0 p) m m

Trial

1993

Volume

T•

or u•v AN•.

t•

t•

D•,n• oA,•

other

imm. NoAklilllhi'd•. O Do you know •,,t

Ihl•

l•e-

knew m a You mn•rmL mop you Ihem.

public •

rusks • Crow E•,. =mpmy AY**. Tofli•nmn•y. O Speclacity • U•.O wh•

Imo a

Ant•

idno

Jlf

are

They'd 't'hey'dikmeto In a

w•'m

now

(t• n•)

mm

out

.-.

Ihe

A Wil, o•w•nm Whi

pe•xl

•

•

I•m

g•g

Omlmm

•

m•

m •h•

Imm •muml • 1M2.

Ih•

I wmdd

(m

.-.

m •h•

Io m•r•i llr/l• •uul•

•:).1o 1he

-

a•l I•k q• Ihe •ml) I•nm (• 8am M. Ani,

W) tm

m m m

utmm

1882.

A•muoh•J,

Almotl•mmam.

(m) Ut} o•

".

8smM.Anm'I•Idbe•wsalmoftlmI. l•b,•tm-la•ti•Ism,slmmNthsm. llenKm•'wmldbsmsm. •m.klmmlmm•msm. t•m •kl be ttlm. It wd•l Sometlmm txi" dlscui6n.

Eddie

AnW.

.....

-

-

Imm Im•

w

-,"

.

Bm Ku• k'm'A AI• Anm" md li:hd Aniaml o Thm pm•e. -*m

bmllm'.M-I• Akn •I•W. Vmm • •h• •

d Eddie

I• I•

•1. clo you nmll •o go pubio)•u

•y

m

Ih•

A YI. Q Wh• A Wd.

.

t•

:

IIn•L•

anllm•

li•um• Wm to

bemum mawnmmpml, m,t• pm• Im•u Milm'y• am i •he mx:klrormdfl'mmomm:m•),•u•m,•mmm..,:. t•mt Bu• • wmn't m roWmom• Id • •m• Im•m•m m p•lnmmm im•lm im• mmmd m dMnl

•m, II•mmrt

mr) mm

b

m

e n•e

o o. •

•d•

u•

emn

Ghdlttnd•-

•tm

tm

ill

q•:l•lly-

dt•um

bdng II •

8mmlnm•

tN•.

I1• m

1• •

mmpsr•

m

I •muld

m•ll•end r=•di#•

ckm m.

nmL

IX•i•

•

.l'•g•

1•

Ihou•

Q D•I

•11nt•

m

m

ckoumw•

•

•)

I•k:i•

you hays

of ttmtmdnem?

•••••s•m (m am m)

It•

pedocl

AYm. Q 14ow do you Imowm•r•

(• (•q

let m

O We,,

(n

(t4) B:kll•

w11h mern,

Doyaulmawwheem'Swn

•lWyouleev•yaurpmmm'hame. nd

They my dlm:mslom

from

-

•

kmmlnml•y•uklhuddleup•mylmmmL •dfpolnlo•nolwroo•

••

public

a

u4

May•alim

rosy

rne

Io

••

I•

of becoming

go/evm•ually

m.y

Ok•t,eylr,,SLmyou.toyaur•.ln,a ix•t

8

(t) company. Thlsvmslmmw•mdNdylSe0. c• p) I•omcralRnealW.but•b'•n•kne. (4) knew ss a pul•Ic ompany

t did.

di•umom

•"Ms

Prom

m/stud A

m •. (•o) (•) (12) (m o4) (m M.

tw:l

th•f

A WJl,

831 P•e wire like I bn•t• lID mL A Ml•:hell abou• Allen? Q Wha Mark m A Nmn m(I my • •e Ix•t of •m•. me Cmz'y Eddie vdb'• me buJnm Q Old you dl• Ar•mEthlst•ne? We'ret/Idn0nowlx:•ttmeldy'70L A Yi, I cXd.

(1)

25,

QWe'mt•ng•xu•? ti•'• ttlt;kq

AYm.

"."

.

-

a•

mqxmmmwFemmlmm.,--:

"•

tm

m

t mr•to

th• m

(m

I•,/mul••1•qlWl•s,..•

tm •m

tm

rmmlnlW•m. It m muly

--."

Tomt•mmq•,m•m•lylml Om•ng In I• IX=l•,

.

Aff•i•,•,••l --

o A 8c,•mmm

s,oo0,

mm•m

•o.o00.

Oqxnd•

_

h•m•/ A Th•

• •

tu) ANO. kn• Q 0o )• v•'m m Mm11:w• • • m• of t• mmey9 AYeL fr) Q wI-m9 im I• ATheylmp•Rt••. S•eofRItmylmld•nt• • •orr• b•l'• •0•11• • (1@) •'• •h• •. (.) QNo•,youm•lyoumamdlh•M187g. Doyouknow how much sldmm• wu u a la•. {• sp1=mxk•m•

I•

rmmm(•

mmon In nm• yw.

gmtm

gml

#mm•

pm•i. •ilm mmm/m•)•u'm If

v•oum

ou•

my.

•

Y••••"

IR mMan In I• * boom lrl mllm

on

M•••.

•e mdm. lmln A It g,•lem md km Q Do you Ilm• •Fjf

(•)

AY•,Ido.

(•)

A Fn:,m O Wt• A From

e•h

y•r.

Immded•

B 1he wltmm•

m

Ih•

m

•.

m =mm,y, (m (•)

In Ih•

A•

pl'tlcu•

y•w;.

•nnmd

•mm

1he m?

• mlllon. ge(m• figure Imm?

(14)

O Where do yo• (m luldlobe AFmmdl•cu01cx'•wiS'•11'mAnlrfomly. (1"r) tl'•n•. 8m'nM.Ani'w'¢lhi•iilamlymm:Itobemm, (m

L

(•s) (I,) (IT) 1•)

(m m•unt o( money •muld o,• oome up m to hew much U•y •dmm•. Thst b • I rsc:•. Q Do you mc/I •e h•nlly about o(h• (•) dt•:u•ions among mi•no cnny EddY, i•o a p•Uc cemp.ay? AYe. (zs) o• U•e Q Ym• me g•m-al manet •,) wus d• •i:•ct

(•m (zt)

p4)

•Ity.

I m(•lL (•lhe mum• k t• • wll 8,m'n M. Jt•Ir ,f::•:umlm'm

lg'•.

W4'•th*omw•thil•¢l.ocrl:m:l. It m old 1871) you II'•

and

hl•

k'mnmSJi•

Q You Ipl• ndflion? A YeL O in a•bmw:tuent ytll? A It wm q:)pm3dml•dy two Ind a l'ml/Io two million end a h/f k• 1981. N)ou• a r•l/on And 1• • le• than $1 million. I INnk It m 19837 Q Wt•lt Ib•J• m. r

m,,,.,

8roe

kl 1980. of 1982

p,n,,on

062 Offlc•

•

l:ta•t•

R1•nl•v

R_ Rbernan.

CSR

/

I

U.S.A.

v

ANTAR

June

18, 1993

Trial

Transcript, Volume

4

PAGE 1 TO PAGE 236

CONDENSED

TRANSCRIPT PREPARED

Stanley

B.

AND

CONCORDANCE

BY:

Rizrnan, C.S.R. Reporter

Official Court

Newark, NJ Phone:

07102

201-643-2456

0 G .4

_

U,S.A. 4.172 positions when

v

ANTAR

18, 1993

June

Q Did you

(1) (2)

by

ov•

new

those

the

company

menagement?

(2) AYes. 1978and askyou (4) QAlso, letrnedirectyourst•ntionlo problem in that year? (s) ,w'nett•er you hsd a medical 1978. in November A I had a heart attack of time? t'r) O Were you out of work for a period (s) A Approximately tw• to two and a half months. your work? m) O Did you men resume (lO) AYes. back to ltm pedod (11) QNI right. Let me get your sttenlJon Who in the early '70s. went public sla•ng me company Uz) before handling 1he books of CrszY Us) did you report to when you were (14) Eddie"/ ATo Sam and Eddie. (is) Q Sam? (1 A Sam M. (t?) SamM. QWewentlodistlnguishbetweenSamM.andSamE. (m and Eddie Ant•. (m Ant• An•. A Eddle .(•) hlred fo do me books, what O At tbe •me you wore (2t) were inslnJClion what pan•ular you given, If (22) knslnJcliom -

(1) (2) (2) (4)

warn? what my dut•s your I•lenersIdutias m? Page 4.173 do mske me payroll vendors, A Mske depasi•, pay • what happened? want me 1O roll you howYourgenenddut•;were Q We will get to lhat in a Ncond. fo make deposits in 1he bank, rigM?

(2) •) (to)

con'ect? be Crazy Eddie O That would money; AYas. Who? O You rmy "pak:l vendors." who sell us merchandise. to people A Make out me clerks said "make •e O Finallyyou payroll.' What did you mean

•4)

to

explain

-

A

take

the

put It in envelopes

cash,

to

you

by

-

penmnal

Page

U3) (14) fls) (t•) (17) (is) Ue) (2O) (21) {=2) (=) (24) (2S)

t•) (4)

QWm'lam:ond. L•'stakoitstopbyltlp. did cuetomor$ Fimt of all, whst Idnds of psymonts What form worn make mt Crezy Eddie for products?

(2) (4) (s)

pay• hl? 8rid ¢t•maas. In the form of cash, chocks A They csme You told us you mceJvod focus on 11•o cash. Q L•s of me cash? I• belding backs • oonom'ning A Con'ocL •? O Who gave you mose You're or posslbly the two of tl'Nmt togelhor. A Sam or Eddie talldng about some•lng mat happened 20 yearn ago. of how long .-go it was, Mr.Antar. Iwantyou Q rm m

(2) (1o) 1.) (12) (Is) (14) (1S) tO IiStSrl lt0 clear on 1he we're Can we make sure MR. ARSENEAULT: (lo) (17) •Irne frame? rm beginning U8) Q Yes. (10) A Boglnning 1973. Q 19737 (•) (21) AYes. O And up untll • (22) period of the public offering. Actually, (•)

we'ilgo'731o'78.

(24)

re<•,dved

m}

rec•pts,

1bees i• orrecs?

OMr.Antsr,

Now, wllhmspectlo1•tecashthatyou 8bout,

1his w•

cash

sales

t'r) (2)

The

Cesh Ihst you were going to depoldt, whst would It? do w• A Make 8 deporJt slip and deposit It inlo 1he bank. O Would you del:x•dt into the bank pe¢lmNdlY? A most of the tlmo yas. O What would you dO wilh the deposit slip? A Use

It

as,,'deposlt

dip.

ODidyouglveitfo|omebody? depa• ¢ip? AAtmevm'ybeginnlng, the

no.

going _.

youmtsur•emloodmyqusstlon.

Did you We didn't

keep have

a

part of.me.. you pllYmCsJiY

of a

mcord

bookkeepen;

st

tlme.

Pa•e (1)

me

Uleittcl'paymli.

ArdholdlL

4.174

-

as?

WtK•ebackha..ffofltor out. be counted (6) cssh would round lhoumnd, (7) approximately hall of It to me nearest •KI • wh•toYer It w•, doposlt me re•t. •) checks •omlng in mrough the bank exn tt mere were •) 8nd not hold bsck as much. 8 riffle bit more (1o) I'd deposit cash that You were (11) O With respect 1o me ixx•on of me would 1O deposit, what you do w•lh me cash? (lz)

ofltc:ml.

--

•

char•l

4.175 for It so It would slatm•nont go Into (1) A Make 8 rm:ondlia|ion we'd The checks1O got me nx•ney for me ¢|•rgos. me benks of. backs the (2) stsmp (4) O Spaak up, Mr. Anta• the backs of, deposIL The endorN would --,we A The cbecks

U)

(• rr)

A Credit csrd chugs, yes, O What would you do wffi'1 the 11or me rr,•4-_ a •_-p-•A I would

.

Page

(la) Actually (to) employees. the employees pidd entirely in cash? (14) O Wm Yes. AWImenexcept•. (ts) Q Eventually were they paid parUy in check and partly in (re) (t?) cash? AYes. (m st the lime you Uo) O Were you givon eny INUlk:ulsr instnctlor• wffil how you wm'e going to do It"rose hired in onnecl•)n ¢O) m lhst the receipts, the money of how to handle in tsmls (21) dutJas in •n came Crazy Eddie? in ofhor words, rll givo you en re'a) A I was 1o(d to hold back psrt of (24) example. Say $1,000 for me day in cash. Hold • or for mat be it for m') oxperams for the

payroli

..

.

(•)

lhe

pay

-

¢3) (24)

m)•/t A Dk:l you want me O Rmt tell us what

4.175

A Right. •t to do wil• the cash i• O Tell us whst you were (2) delivered Io you? that was storm; Eddie • into Crazy came (2) half of that. Only (4) ATo hold bsck half, approximately were checks whatever to cover (s) deposit, what was necessety (6) out•-1anding. you wouldn't the po•on that you held back, meaning (?) Q • for?. you told to hold it back (2) deposit it, what were and for whatever (9) AWe use Itfor payroll and olher expenses It for. (Io) •ey• It for" they want• (11) O When you my "for whatover Sam M. or Eddie. (12) A.Meaning what do you mean? U3) O When you ray "for pamonaJ expenses," (14) A For 1heir pemonal expenses. of how.mm pnymc•ty, O Take us mrough me pm•, (is) by you end fnt tMI us now you m=e4pts would be received me store rm::sipts that wenl to be deposltsd. handle (17) woutd the I1ore moldpts that were handle how you would f18) Then tollus I• day and wMk us Inmugn. just asmane Us) held back. would drop off 8 bag thai held A One of 1base sloce managem (2O) that daY. mc•ved •lat m and charge• (21) 8Jl the cash, checks cmd chlugos? be credit (22) O Thin would (1)

taken

was

.•

4

Volume P•l•

Page

lose

Trial Transcript,

.

.-

4.177

O But mmnlu•ly? rd gh• the A EventuaJly, when we got bookkeepem a'm wfl• the tsPe m'low•ng me deposit dip to 1he bookkeeper also, bedonewilhmedepo•tsiip, as would amount of checks of s'le cMrgas. and me enloum the charge re<:stve the check, would Q So 1he bookkeeper depO•dt; of me cssh thst you would ilips and lhaI • con'ec• AYes. and Idlow UP on 1he books O Is It h'lat figure that would mc•Ipts for me as showing me gross records of me company

.coPY•of

(2) (lo) (11) (I•) day? AYes. (I•) •at you be4d back,•t (14) O That half of cash, •opro•dmatoly, of the companY, and mcon•s books me not on dld appear Us) (lo) UT) A NO. It did not appear. What did you do It physk•dly? did you do • (18) O Wh• (to) It? (2o) AI putltaway. (21) Q Where? In ,• drawer. Wha•v•. Inenattachecsso. Aln•'lehouse. (.•) on * dallY fn)m the stores • And cash was O by you (:•) (24)

basis? AYes.

,...

.

..

:

.

U.S.A.

asA

(1) cash

O How

long

-

how

v

ANTAR

June

18,

1993

you

generally keep

the

the next step? in your house before accumulating It could be four be a month. It could be A week. ¢z) A Could five weeks, six weeks. (4) weeks (s) Q And what would happen with 1he cash Idtor it aooumulated (6) for this period of time? (7) A I would either drop It off 8t Sam M.'s hotw, e or one of the Ben K•r. or Ben. Either Mitchell (8) boys would pick It up. Mitchell Antar? tg) Q When you say 'Mitchell," doyou mean An'mr. 110) A Mitchell on the that did not appear Q Now, with mspect to lhe cuh (11) of your, ownof Did you keep any mcord of the cornpany. (12) books -

of cash? (13) that amount AYes. (14) that keprt Q Where was (is) IdesUoyedthem. (1) AWedeslmyedlhem. desUoyed, where did you keep 1hat record? (17) Q Until they were A In my home. (Is) i•ef of books? (19) O So you had 8 second (90) AYes. tells us agalrt. Who woUld l:dCkup the money it Q You said I) it to Sam M.'$ house? dellver (9=) you dldnl Artier or Ben •. 12s) A Either Mitchell, Mitchell Wes •mre a scheduled with them? (=4) Q How would you arrange -

(6) (7) (s)

4.179

A No. O Or they would Just call? A C,ell up. the cesh to Sam M.'s house, Q On the occasiocs you delivered it was where did It go? Did you see where plJ•t he put It that I•U'liouler montent? A Wham QYes. He would A He had a false ceiling in his walk-In aparlmenL put it Inside the raise ceiling. fftat the cash wes Q What wes the reason being hefd back? A Not to pay taxes on IL wflh lira you familiar Q You told us thst the cash that wes

(9) 110) (.) (I=) the term (m s•lmming? Yes? (14) AYes. O F.esont•ly? (m (•e) A,Sklmming. Commt? (17) QYouddmmedcash. A Coma<¢ (la) lhe uses for which lh• skimmed cash (19) Q Now, let's lalk about lake a po•don of the r, kimmed You seid thst you would (2o) wesput. (21) cesh and use It for plyroil? (22) A• by that? (23) Q Explain to the Jury what you mean wa• (=4) A If =orneone suppo•Kl to get $500 8 week? for A He would Rs) get $50O net l week. Then he would be booked -

Page 4.180 be paid onlhe The tax would (1) $500gro•orsomeflmesieu. beoked. (9) emoum 8rid the between the amount • (9) Q Then the difference net wes (4) amount paid In cesh? the checks. Pdortolhe Aiter we started Alncssh. U•n cesh. (e) checks, we lust ga• 8rid part Q Then efter the chocks, m I•y part In cesh you would (8) by ched•? (9) AYes. to issue W-2s to pay for ttm ompany (10) Q When the time came tax purposes, which figure did you put on the (11) for Income -

W.27 (12) employee's In the payroll book. (13) A The figure 1hat is shown but not Including the (14) Q Which wes the figure on the check (is) cash? A Not Including the cash. (le) for payroll, what Q Now, a part from the cesh that you used pT) the ot• for? cesh used was (18) for buying were fodng the housa, expermes (19) A Some of the uses and whatever. •ise (2o) clothing, the house or buying clothing or (91) O Did you use It for•dng •z2) (23) (24) t2s)

4

=•x•,)

4.181

accumulated? after It was A Well, Eddie might cell or Debbie might call or Sam might call. Sam M. might call and say Allen needs so much for this •) (4) or Allen Antar. needs Im much Eddie would 1o this. Cs) say Debbie money time he just made a blanket statsmmnt. (e) At one "Anything that she wants.' Debbie needed, just give her whatever his mother-ln-law would ask for It for (8) Somelimes Debbie. (•) Allen and Eddie and Sam M. and Debbie, who else Q Besides (lo) (11) would get cash to in•:ientaJs? (1:,) A On that basis. For darity, Debble Rosen we're (13) MR. ARSENAULT: (14) talking about? Debble Rosan A I'm socry. Antar. (is) Debble Rosan. (16) Q I'm sorry. (17) A Yes. O So would lo Nlen, cash (is) you, pen;onaity, give money money 119) to Nien? it. A I•m done (9o) (91) Q Mitchell? (22) AYes. Rosen? (93) O Debbie (94) A Yes. Q Then you aJso brou•lht the cash over to Sam M. (251 (1)

p•k up? Page

(1) (9) (3) (4)

Volume

Transcript,

(9)

(2)

rzs•

Trial

Page

Page 4.178 many days would

merchandise? ANo. us how you would QTell •'ou have elready described

(I) (9) (3) (4) (s) (s) It) (s)

(•) (1o) (11) (12) (13) (14) (is) (1• (17) fir (13)

Page 4.182 AYes. A Also cash to Eddie, also. Q And to Eddie as well? AYes. Q That is Eddie Anter, the defendant? A Eddie Antar. Q You, yoursoll, would you get paid off the books? A Yes. how much Q Approxirr• were during you paid off the books this perked of, let's say, In the rnid-70s? A It vms $150 a week, every week. to your payroll (track? Q That was in addition A My peyr•i check, right. off the books • Q Did you report the cesh payments you roc•lved for income tax? A No. Q Can Debbie

you estirnme Rosen/u'nar

for us, by tt• way, how much ca• a week tm•ed to pick up trorn you or used to get

YAOUD•"

(to) no (91) MR.ARSENEAULT: (•ue) of tlme. O Let's say from •) (94) A I know we had wes$1500aweelc rzs) -

(1) (9) (3) (4)

Judge, we'mcovedngslongpedod tha

late "70s? mtd.to es far es tho payroll can•even Addition-I

her,

Page 4.183 Ican•he•hirn. MR. KROVATIN: Q You got to use lhe mike. Move your ctudr do•r. THE COURT: Somebody help him get tim chadr closer.

wes

Help him. We may

need

in terms

the cesh apart frorn what of ha•dn•l It picked up

a

lower

You It wonl bite you. get lt dght ln front of your mouth. (•) wonlgeteleclmuted. Modemtochnology. THE COURT: Go ahead. rn Yousaid, fir• (s) QAJldght. l'msorry. Mid-tolste'70s. Rosen Antar wss on the payToll •or 1500 a week. (•) of ell, Debble or 1500 ca•;h? (Io) Were that 1500 on the books (11) A 1500 was tho cesh. (13) O SO that wes un•? (13) AYes. (14) Q Did she actually work m Crazy Eddie's? A No. (is) Debbie o0"mr surrm were to Ittat th•'e Q You sey In addition (is) Antar would (17) Rosen get fTom time to t•e? A Yes. (is) How much at sums? (19) Q Would you tell u• the magnitude of • (2o) eny octe time did she get? •oupie low es a couple of thousand have been as (21) A It could have I:men as much as 15 or dollars even or It could (22) of hundred $18,000. r•) Ira's say, flora 1973 to • early 1980= •z4) O During this period, correct? additJonaJ slores them were being added; tzs) -

dlstdbute

It

on¢omed,

remember.

..l-_ne 18, 1993

U.S_ A_ v ANTAR

BSA

Page 4.1g0 Q When you say ,quite a bit of money," what do you rnean? A A little over maybe $500,000. (2) (3) Q This is in cash? (4) A Cash. •'•at you and Sarn M. Antmr had the dir, cusdon (s) Q So what w• to Ista•t taking •e mo¢• m concerning (7) A He was going to take It over to Israel. O What was the dlscussk•? •) to lsrael. over take lmme He •uld money (9) AThatwaslL like l•laL o¢ anyl• d• wasn't a kx• (10) There (•)

-

Israel?" (11) "Would you (iketogoto (1=) I said, "Okay." He saki to you (1•) Qi.et'stakeltsllffiemomstepbystl•. (14) y,l•at? now. (is') A Oh. I can*t remember Did he make a mquest of you? OlnwJbslan•. (le) let me DII you whm I did. (17) A I imagine uswhatdld healkym/? (18) Q Fnttell to take It to Israel. A He Wwd me to pack up me money 1•) of me money? (2o) O Did he gt• you mine NO. Ihadlt. (21) ANo. of me money? Q Dicl you gJw him mine =2) A I gaVQ hlm half • IL (2• Q How did you i•¢k up your half • Wke to Immrt (2,) them boNh up blto manga A l en•mk)pu. StOOb,is. -

-

F•

Whatdldyoum•'t

(1) Ql'msony. doller bills. 12) A In hundred Sam Q Did you i¢ompany p) (4) AYes. Q Wllh youz' wh•s't (7) (a) (9) (lO) (• 1) (•z) (1• (14) ClS) Cle) (17) (18) (1.) (2o) (21) 2) I•) (•4) (2s)

m (4) m

dollm"

you had?

blllx that

Y°•

go•

m

did you to get me money

Inotk:edmemam Alhedbeenmroughmelhl)ortbetom. them

•at

uy

you

had

to declare

anyINn0

over

$I0,000.

Imernioned

Ifyouwemcm•/Ingm•fthlngrr•e'd'am$10.000. •mt

to him.

HesBJd,

eDoll•worlry.

ANo. a time, again, in 1he early '80s when come (e) O Did them bank account Ir,ra•i an idgna•um document? (•) observed A Yes. (to) Where? QTellusthe•OflhaL (1•) (1•) AYes. and when did thai happen? Q Where U•

glat to know He seemed O In Mct, m you able hlto mlmn

EIAJdoe•rl•(:he•y(•ur

lot the,

Me and

you

S•

,

pu

-

4.184

Plge

AYes. RosenAnlarllvemlallveto Deborah Eddieand QWhemdld a) AnUu9 Sam M. (4) me =me ===• m. A D•=o•x.• th• be? would Q Where 111 glve you the addrms. between (7) A East TNrd Smmt Idon'tmmemberwhatEddle's addrus. (•) 2148 was Sam's -

Ontheoppos•deoftltexmmt. (•) was. O in BmokJyn? (•o) AYes. m) a¢lually INklg l•'le • O Do you mc:•i (l•J AYes. (•) (14) Q I'm going to Id•owyou1011 we reached MR. CHERTOFF: Perhaps (•s) on. (•e• IBR-11001011. O Let me •v you lhe FJdl•R (• •te of the dgna•ms some Us) ff you •nlze

Ju• =m'ry money out. you ould to ¢•r•f money wlt• 8am M. Antar

ompena•

AWe•lotaMptolsmel.

lhe

(•4) AWehadawalk-ina•lnSamM.shouse. He•oko•iba•k•s•g•onand US) 8round 8kJtldlentable. I don• remember • Edd• to s•n Ben and Mhchell Us) asked Xeldgnedltllso But-abankrwolution. U•) stgneditlhen. Rose sdgned It. (,m) • who? mean (•m) O When you s•f "Ben," you (2o) A Ben Kuszer. Q That ism) A Sam M.'s son-in4aw. m) who? you mean Q When you ny'Mitchell," Amar. (24) AMItchell In fr°nt °f Mltdlell Amlr Idiln llle d°aJment -•O Dld

-

bags.'

AYes. O Did you get any

4.193

r•

Q Then what did you do? That year lt was and myed. A We went on to Jerusalem •) (3) Hilton Hotel. time? in Isnml It • (,•) Q How much longer did you Ipend Ten days to two weeks. weeks. two about (s) A Probably in Israel? do you, yourself, have an account Q Mr. Ant•, (s)

(1)

address

di•usdon, If any,

Page (•)

to Imlmt?

M. Antar

AYes. did you ¢any the hundred Q Where A In my ov• bag. did he carry his? O Where A In hls o•bag. 0 ee•:Pm left wi• him, what how you haw wflh • in?

Blgns

Volume,4

Trans•ipt,

4.191

I•

,

Trial

by

1he

wsy?

my wiM.

(21)

AlmcognizeU•eoflhem.

(=1 •4)

K•so. Eddie Q Eddie Antar? A Eddk• Amar.

that

an

Idgrmd?

was

J

agnmment

Letrne•skyou blocked out.

BenKuszm',MllchellAntarand

4.•

aldine did you fly? Q Wh• ABAI. where you landed't O Do you remember A In Tel Avlv. or I•e elqxxt? name O Do you •me A Oh, Ben4)4Jdon. Whattime? o •Nm¢•. Couldll•vemcmewxt•r, maybe? AExcu•me. OSum. to me wlme•.) (W=mr •

m m (9) (• (11) QOkay. Wh•timeofdxydldyoulndSamM.Antararrivem hn'ael? (• (1•) A Early rnoming. do Iflsr you had go• l•'.•)ugh (14) Q Y•nat did you end your whys cusloms? (is) boarder have imylhing to We didn't A We waJked lh,-ough customs. (is) (17) decim. (18) Q Except for csh? We Just walked lhrough. that, elttw. A We didn't de
(!) p) H) m

Ne I didn't A Debble's Q You recognize Bell

Page 4.m5 1hat often, Im I can'L and Mitchell's

Kuszedl,

Eddie

Antar's

•gnmm? A Yel. • let melong m rye got this here, rd like to Q Aj•, numt•*r et myrmev pmmort •mu.•: •how you wt,•m wrm beoInnmg lhe passport number compare you would A 30334. on thls document? O Does that appear

(•) AYes. (•0) THECOURT: m) I m oompadng itto ExhlbltT0•ln MR. CHERTOFF: (• your Honor, and IBR-1011. Us) evidence, Bo•meumepassportnumbem? 11•) THECOURT: yes, lheyaml•eumepassPo• MR. CHERTOFF: (•s) your Honor. (1•1 numbers, to Idgn llds? (1•1 Q Were you uked A No. (tl) IBR-g13, F.•lbit(18) Q Let me r, how you Govemmecd identfficalk•. for IBP,.915 IBR-914•md (2o) do you_ for ldentlfi•tlon, to IBR-913A W'dh respect m) rlgM-hand ¢ome•' on A In the lower see s dgnature (•) A It's Ben Kuszer. I•) a deposit slip? (24) Q Is •at AYes. rt3)

' M

1

--

•myou¢ompadn•

068

_

J

ii

1 :

IN

THE

FOR

°

2

3

UNITED

THE

CIVIL

SECURITIES

AND

DISTRICT

EXCHANGE

5

DISTRICT

OF

ACTION

NO.

NEW

COURT

JERSEY

93-3988

COMMISSION

Plaintiff,

4

STATES

:

:

.

-V-

Deposition 6

SAM

M.

ANTAR,

BENJAMIN

ALLEN

of:

and

ANTAR

KUSZER,

SAM

M.

ANTAR

7

Defendants, "8 -and9

RORI I0

ANTAR,

ANTAR, M.

A.

ANTAR,

KUSZER,

KUSZER,

SIMON Ii

SAM

ADAM

SAM

ROSE

MICHELLE

:

KUSZER, and

ANTAR

SAM

ANTAR, Relief

12

Defendants. X

13 •0

14

T

15

16

R

A

N

above-captioned

the JOANNE

M.

Notary

Public

Federal

CARUSO,

C

R

I

of

the

State

II,

T

of

deposition

the

taken

and

by

Shorthand of

Building,

January

P

as

Certified

a

Courthouse

Tuesday,

S

matter

New

at

New

commencing

1994,

and

Reporter

Jersey,

Newark,

in

before

at

the

Jersey, 10:15

on a.m.

17 A

P

P

E

ARAN

C

E

S

:

18

UNITED 19

BY:

SECURITIES

STATES RICHARD

AND

E.

SIMPSON,

ESQ.,

G.

WALLACE,

ESQ.,

EXCHANGE

COMMISSION

and 20

RICHARD For

the

Plaintiff.

21

22

23

FEDERAL

COURT

P.O. 24 o.

e

NEWARK,

BOX NEW

REPORTERS 22363

JERSEY

07101

..•l 25

EDERAL

COURT

REPORTERS

(201)

994-2940

7 00

Antar

1

3

THE

J•

problem? have

I

WITNESS:

with

problem

no

that. have

I

5

did

brother

for

until

us

Eddy

dates.

with

problem

a

work

not

my

1972.

Okay.

Q

7

8

Q i0

the

that

Is

6

57

different.

are

2

4

Direct

-

THE

WITNESS:

Let

me

going

He's

1969.

then.

question

the

rephrase

to

back

Okay.

A

\

At

Q

11

time

any

from

to

1972

1979,

did

you

his

house

!,

12

become

13

currency

14

A

that

had

And

Q

16

fact?

17

A

brother

your

originated

from

in

kept

Eddy

Eddie?

Crazy

Yes.

15

He

19

business,"

20

of

21

A

charge

When

you

you

mean

do

The

become

you

of

in

was

of

charge

Eddy

Uncle

that

that

business.

the "he

say

of

aware

in

was

the

charge

business?

entire

the

did

how

in

was

Q

18

i

that

aware

financial

entire

part

the

of

business

T

J / ! i

Q

22

And

financial

23

the

24

aware

25

currencythat

that

as

a

of

part

the

brother

your had

of

result

originated

did

business, Eddy

for

responsibility

his

kept

in

from

Crazy

his

you house

Eddie?

become

:J

Antar

1

A

A

ii

operation?

8

A

9

it

was

become

you

become

part

of

aware

of

Can

From

1972

used

for

purchasing

aware

of

was

part

that?

it?

operation.

our

describe

you

to

how

1976,

set

we

payroll, and

it

it

of

for

kept

was

your

Some

used

was

of

some

of

aside.

money

of

some

merchandise

it

on

the

side. Q

13

money

14

A

Can

will

You

16

Uncle

17

A

Eddy

about

Pardon

18

brother aside?

21

A

I

22

Eddy

about

may

have.

Q

23

of

24

A

those

the

which

by

process

to

you

ask

Uncle have

ever

how

money

you

have

was

Eddy any

for

that.

conversations

with

aside?

kept

me?

Did

Q

20

have

Did

Q

describe

you

aside?

kept

was

15

25

was

Q

7

did

Yes.

It

A

how I

Q

12

19

did

How

6

I0

And

Q

4

5

58

Yes.

2

3

Direct

-

Do

the

process

recall,

you

conversations

any

as

with

by

which

you

sit

here

today,

you

may

have

had

money

was

conversations?

No. Q

FEDER

When

AL

you

say .

COU•T

that

•Vpn•T•p•

your

.

1on•

•

,

onA_•nAn

set

any

Antar

1

3

it?

4

A

5

Solomon

6

down

7

to

9

Eddie

Eddie,

his

son,

me,

that

and

it.

learn

about

Uncle

Eddy,

testimony

cash

was

filtered

after

that

aside

set

7

it.

was

your no

about

probably

course

E.,

it's

And

else

involved,

of

and

Sam

learned

everybody

was

knowledge,

your

1976,

from

Crazy

operations? to

Not

A

II

12

and

Q

8

that

Everybody

to

did

how

74

else

everybody

And

Q

2

I0

time

Same

A

Direct

-

there,

knowledge

my

Q

Now,

where

Was

while

maintained

cash

that

cash

the

to

respect

with

laid

that

it

was /

13

laying

there?

14

A

Most

16

was

17

A

19

in

20

A

21

my

charge

but

23

you?

24

A

25

think

cash

the

in

was

home.

my

that

Eddy

brother

your

was

give

would

he

it

to

me

or

give

it

to

Eddie And

Q

22

that

about

come

home.

--

Yes, son

It

testified

You

Q

18

my

home?

your

simple.

Very

it

did

how

in

maintained

in

maintained

was

And

Q

15

it

of

Sometimes he

then

he

son

your

would

and

would

Eddie

most

of

the

time,

it

yes,

to

I

I 14

did.

FEDERAL

give

COURT

REPORTERS

(201)

994-2940

i

Antar

1

And

Q

2

home?

3

A

In

4

home?

6

A

Was

Yeah.

9

maintained

Ii

million

in

dollars, Let

recollection

point

16

A

17

more,

you

$i00,000

less,

19

cash

in

20

A

21

because

22

purchasing,

23

need

home

your the

In

of

but

of

cash

time?

in

million,

$3

a

of

a

about

we

we

you

at

a

have

single

dollars?

less,

that

$50,000

the

$I00,000

it

days

after

do

more.

become

that

million

$50,000

come

would

know,

maintained

amount

it

that.

don't

you

$I00,000

fact

bedrooms.

point

clarify

maybe

earlier

the

maybe

excess

did

How

amount

single

a

say

in

Sometimes

Q

at

to

the

was

your

know.

try

Yeah.

18

24

time

in

the

of

one

largest

don't

that

in

your

there?

About

me

When

15

in

location

of

the

ihome

I

13

a

maintained

cash

p•rticular

up

know.

Q

14

the

ceiling

was

your

don't

I

12

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the

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a

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$600,000?

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you

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signature

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of

page

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of

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second

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at

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deposition

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you

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13

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truly.

the

did

cash

from?

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SIMPSON:

MR.

23

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document.

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MR.

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States Same

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I

UNITED

COURT

STATES FOR

THE

IN

RE

OF

THIRD

APPEALS

CIRCUIT

NO.

95-5283

SAM

M.

ANTAR,

Petitioner-Defendant.

SECURITIES

EXCHANGE

AND

COMMISSION,

Plaintiff-Respondent, V.

SAM

M.

ANTAR,

ALLEN

and

ANTAR,

BENJAMIN

KUSZER,

Defendants, and RORI

SAM A. ANTAR, ANTAR, SAM KUSZER, KUSZER, ROSE and SAM ANTAR,

ADAM

Relief

HONORABLE

NICHOLAS JUDGE

H. FOR

M.

TO

SAM

OF M.

THE

ANTAR'S

OF

AND

PETITION

EXCHANGE

FOR

WRIT

RANDALL Senior CATHERINE Counsel

Counsel PAUL

GONSON

OF

COMMISSION MANDAMUS

SUMMERGRAD

Principal

Of

DISTRICT

NEWARK

Respondent.

SECURITIES

ERIC

STATES

UNITED

DISTRICT Nominal

OPPOSITION

ANTAR, KUSZER, ANTAR,

SIMON

Defendants.

POLITAN, THE

MICHELLE

Assistant W.

Counsel

QUINN

Litigation A. to

General

the

Counsel

BRODERICK Assistant

General

Counsel

Solicitor

Securities

Washington,

and D.C.

Exchange 20549

Commission

TABLE

OF

CONTENTS

PAG_____EE TABLE

OF

AUTHORITIES

ii

.....................

BACKGROUND A. Be

2 The

OF

Complaint

Politan's

Judge for

STANDARD

Commission's

Denial

Recusal

Against of

Antar

.

.

.

.

.

2

.

Motion

Antar's

3

......................

REVIEW

3

.....................

ARGUMENT

THE

4 DISTRICT

JUDGE

DENYING

ANTAR'S

TO

MEET

THE

V

UNITED

DID

NOT

DISCRETION

IN

FAILS

ANTAR FORTH

IN

LITEKY 4

Statements Criminal

B

Made Case

Statements criminal

as .

Statements seize

Antar

Politan Judge Extrajudicial.

in

Prior

a

not

by

Made

Judge

Do

Not

to

Make

.....

in

Politan

Show

Such

Fair

Deep-Seated .

relating money

Prior

the

Judgment

...........

bail

to

to

.

by

.

.[.

attempt

Antar's

paid

.

Mitchell

•

7

..................

Statements of

by are

Case

Antagonism Impossible

/

HIS

STATES

Ae

CONCLUSION

ABUSE

RECUSAL MOTION BECAUSE STANDARD FOR RECUSAL SET

relating

restitution

funds

...................

to

the

distribution 12

..........

.

i

.....

15

TABLEOF

AUTHORITIES

CASES Allied

Chemical 449

U.S

Ferrari

United

v.

169

Haines

F.2d

F.2d

21 Jones

F.2d

States

for

the

Northern

426

U.S.

394

Liteky

S.

Nicodemus

United

1147

152

States F.2d

665

434

U.S.

i000

States 40

United

F.3d

v.

Bertoli, (3d

F.2d

534

444

U.S.

843

States 757

594

Westinghouse 951

STATUTES

Securities

Act

Section

(3d

Corp., 1990) Court

District

of

.

.

.

12

.

3

.............

California,

.................

.

2,

...........

Cir.

1979)

Cir.

.

4

.

4,

passim

6

i!

.............

i

]

denied,

cert. ...............

+

1994)

.

.

6

5

...............

cert.

denied, 5

...................

Cir.

1985) of

(3d

Cir.

of

1933,

15

17(a),

15

1414

AND

I0

....

............

District

Republic

v.

F.2d

6

Wilensky,

v.

F.2d

..........

1994)

Schreiber, (3d Cir.), (1979)

v.

599

United

.

Associates,

Archbold-Newball, (5th Cir.), (1977).

1384

States

.

4

Corp., (6th

v.

554

United

.

.

+,

(1994)

Chrysler

F.2d

.

States,

Ct.

v+.

596

............

1992)'

(1976)

United

v.

114

Inc.

National Cir. (3d

1350

United

v.

1948)

Cir.

(7th

Pittsburgh

v.

899 Kerr

157

.

Cir.

Commons

F.3d

Inc.,

.........

Group Cir. (3d

81

Huntington

re

Daiflon,

v.

States, (9th

353

Liggett

v.

975 In

Corp. (1980)

33

J

\

PAGE

"

4

"

Philippines,

the

1991)

..............

RULES

U.S.C.

U.S.C.

77a,

77q(a)

ii

et

..............

seq. 2

-+J"

STATUTES

AND

RULES

(Cont'd) PAGE

Securities

Excha•q• Section

Rule

10(b),

under

the

Rule

lOb-5,

Act

•

15

U.S.C.

Securities 17

C.F.R.

1934,

IS

U.S.C.

78j(b) •Chanqe

.

Act

240,i0b-5

iii

78a,

.............

seq. 2

.............

of

et

1934

2

UNITED

STATES FOR

COURT

THE

IN

OF APPEALS CIRCUIT

THIRD

RE

No.

95-5283

SAM

M.

ANTAR

,

Petitioner-Defendant.

SECURITIES

AND

EXCHANGE

COMMISSION,

Plaintiff-Respondent, V.

SAM

M.

ANTAR,

ANT;•,

ALLEN

and

KUSZER,

BENJAMIN

Defendants, and RORI

SAM A. ANTAR, ANTAR, SAM KUSZER, KUSZER, ROSE and SAM ANTAR,

ADAM

Relief

HONORABLE

NICHOLAS

H.

JUDGEFOR

M,

UNITED

DISTRICT

OF

Nominal

OPPOSITION TO

The

and

for

Court

statement

Judge or

an

HE

appearance

SECURITIES

ANTAR'S

Securities

District

creates

M.

petition

Antar's

no

OFT

SAM

writ

a

of

Nicholas

AND

conduct

by of

bias.

the

EXCHANGE

FOR

mandamus

DISTRICT

Instead,

COMMISSION

MANDAMUS Sam

opposes

seeking

Politan.

judge

OF

WRIT

Commission

H.

STATES NEWARK

Respondent.

PETITION

Exchange

ANTAR,

Defendants.

POLITAN, THE

MICHELLE ANTAR, SIMON KUSZER,

recusal

Petitioner

inthis

proceeding he

challenges

M.

of

points that statements

to

J

'\

made

in

prior

a

insufficient set

to

forth do

They exhibit

in not

require

recusal

judgment

shown

0f

degree

denying

that

he

extraordinary

the

has

recusal "clear

a

relief

114

S.

favoritism

of

do

they

and

make

to

as

notabuse

his

therefore

indisputable,,

of

(1994):

1147

antagonism did

motion,

standard

nor

judge

and

writ

a

Ct.

or

the

are

controlling

source,

Thus,

impossible. in

States,

statements

the

extrajudicial

an

high

a

Such under

United

v.

from

stem

discretion not

proceeding.

Liteky

such

fair

related

_.

has

Antar

right

the

to

mandamus.

BACKGROUND [:

A.

The

Commission's this

In

against

!1

law

Sam

co-founder

of

Antar

is

of and

Act

The

have

to

15

Mandamus, Appendix

dated

the

Keneally April the

to

citedportiQns At

from

times, other

members

is

are

referred of

of action

his

17(a)

1934,

15 17

on

attached to

family.

"

as

240.i0b-5

to

j

Affirmation for to

9, this

10(b)

78j(b),

Simpson

April

"Sam"

the

of

U.S.C. C.F.R.

refers E

to

of

Section

Transmittal of Petition

Richar-d

Crazy

complaint,

and

"A

in

provisions

77q(a),

Support

,1

J

\..

director

trading

Section

the

1995.

this

which

of

to

in

Esq. 27,

•eclaration in of

Antar

,

officer,

insider

thereunder,

exhibits

to

districtcourt

Act

and

disgorgement

Commission's

U.S.C.

Securities Exchange Rule 10bz5 promulgated B at (Exh. 25-26). refers

and

antifraud

violated

1933,

the

"Exh. __" of Kathryn

the

Securities

an

for

of

laws.!/

of

relief

Inc.,

violation

alleged

Securities

the

("Antar"),

Eddie,

securities

federal

action,

Antar

M.

in

Antar

injunctive

Crazy

stock

common

Aga4•t

enforcement

seeks

petitioner

Eddie the

civil

Commission

Exchange

and

Complaint

Writ

of

the

filed

1995,

in

the

opposition.

distinguish

him ..

•..'

filed

September

on

from

September of

shares

•he

when

Eddie

to

disgorge

an

officer

for not

three-year

a

Antar

$18,661,087

of

crazy Eddie's

that

knowing false

period

1,246,500

s%id

proceeds

materially

seeks

misleading

and

profits, of

Politan,$ March

1995

'

o•

Antaf

,

Exh.

B

Politan,

which

(Exh:

Judge

Dat formed

not

(id.

the•case I

will

*

*

*

*

*

*

I

Antar, stand have

in it

prejudge

have

nor

no

I've

at

(Exh.

serving

B

at

as

31).

30

Recusa]

recusal

hearing

a

the

of

Judge

April

on

24,

made clear

judge

Antar's

that

before

culpability

shape, I

prejudged on

work

any

ever

Mr.

him

seen

preconceptions

STANDARD

OF

all.

at

about

Sam

,

the

on *

testifY

j

matter.

case

Antar

this

to

as

the

the

opinion

any seen

form

or

manner

ever

never

I

from

him

.•

formed

not

ordering

•

done

*

for

about

have

nor

*

motion

a

anyway,

haven't I have *

for

9-iI):

at

not

Motion

hearing;

opinion

an

Antaris

denied the

At

company

•

Politan

25).

him

public

-

from

laws,

barring

filed ..,

Antar

securities

and

any

Denial

24

.

the

of

illegal director

or

..

judgment enjoining

a

.

hearing

stock

violations his

Judge

had

1987,

over

.........

committingfuture

he

October

in

were

The compiaint

1995

that

common

statements

On

alleges

orwas•reckleSs

knew

24-26)

B.

1993,

through

1984

Crazy

financial at

8,

*

*

•

I

man.

REVIEW L

A

recusal

district

court

reversed

only

National

cor•.,

motion

is

judge;

his

for

abuse 899

F.2d

COmmitted decision of

to

the

to

deny

discretion.

1350,

1356

Jones

(3d

discretlon

sound

cir.

the

motion v.

the

of

should

be

Pittsburqh

1990);

United

States

4

Wilensky,

v.

writ

A

in

only

of

mandamus

Court

394,

402

F.2d

1414,

Antar

has

writ

is

•he

(3d

1423

the

drastic

a

Northern

Cir.

burden

District

Inc.,

showing

indisputable.,,

449

U.S.

PhilippiDes,

33,

951

that

(1980);

F.2d

used

statem 426

U.S.

Philippines,

seeking

party

right

Allied 35

the

of

his

be

CalifQrnin,

of

the

As

should United

v.

Republic

v.

and

that

remedy

1991).

of

1985).

Kerr

Westinghouse

"clear

Daiflon, the

is

Cir.

(3d

circumstances.

for

(1976);

599-600

594,

extraordinary

District

of

F.2d

757

951

mandamus,

issuance

to

Chemical

of

CorD.

Westinqhouse

a

v.

Republic

v.

1423.

at

ARGUMENT THE DISTRICT JUDGEDID ANTAR'S RECUSAL MOTION FOR RECUSAL SET FORTH

Antar

by

Politan

impartiality

in

might

however,

to

standard

for

recusal

Sta•es,

114

United

show

"extrajudicial brought

prejudice require

IN

LITEKY

these

S.

by

out

Ct.

that

under

28

U.S.C.

himself

in be

reasonably based recusal

455(a),

on

unless

any

the

Supreme

they

which

proceeding

made "reveal

fails,

governing

Court

Liteky

judge's

in

Liteky

held

that

v, the

recusalmotions

questioned.,' statements

the

made

the

Antar

meet

(1994).

1147

statements

questioned.

statements

STANDARD

THE

STATES.

demonstrate

be

reasonably

MEET

19-21)that

case

DENYING

IN

TO

UNITED

12-13,

related

set

FAILS V.

5-11,

a

that

DISCRETION

HIS

sourcedoctrine"appliesto

"disqualify might

ABUSE

BECAUSEANTAR

(Pet.

argues

Judge

NOT

requires

a

in

his

which

federal

of

in

proceedings

such

a

high

to

impartiality

Allegations judicial

judge

bias

degree

or

do of

not

favoritism

I_•d.

or

at

1157.

Cir.

(3d

1412

antagonism

as

Se___ee, •,

United

1994).

extrajudicial, there

was

Statements

A.

Case

The

States

comments

Antar,

v.

Politan

Antar

not

was

They

were

finds

not

were

judgment

denying

in

A)

and

presiding

in

Antar's

Prior

a

objectionable

made

during

were

based

over

the

plain his

baldly

Politan's

a

Criminal

not

are

prior

(United

case

testimony

on

Judge

Such

case.

the

meaning

(3d

president

is

knowledge

of

that fraudulent

are

in

analogous

where

corporation there

was

corporate

of

and evidence

filings);

judge

of

(1979)

support

recusal

sales

(bench

manager

knowledge v.

United

is

F.2d

599

trial

presided

president's Ferrari

in

case

Schreiber,

previously

general

to

contrary

that

v.

843

a

Furthermore,

situations

U.S.

its

no

none.

States 444

•s

cites

the because

Such

doctrine

aware

United

denied,

corporation

extrajudicial

Antar

we

that

16-20)

proceedings. source

e._•g_•.,

cert.

of

trial

held

See,

Cir.),

prior

"judicial." and

required.

is

extrajudicial of

have

cases

the

to

proposition,

(Pet.

asserts

statements

party

a

on

several

and

Politan

Antar

from

Judge

limitation

stated

by Judge Extrajudicial.

nevertheless

of

source

jury

fair

1384,

"extrajudicial." Antar

534

discretion

that

Exh.

heard

not

not

of

F.3d

40

statements

make

not

Made not

are

"extrajudicial."

of

do

abuse

no

Bertoli,

v.

challenged

they

impossible."

judgment

motion.

recusal

the

the

because

fair

States

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impossible,

make

to

of

over

and of

States,

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F.2d

353,

"heard

354-55

(9th

testimony

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of

appellant

mentioned In

Antar's

Cir.

not

therein

in

addition,

the

not

connection

Supreme

remand,

held

and

fact

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never

related

case.

members

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States

B.

judgment

of

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correct,

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the

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Antar

case

are

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would

judicial

of

554

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judge

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after F.2d

who

about

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discarded

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heard

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create

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judges

665,

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iI ¸ III

by

Politan Judge Deep-Seated Impossible.

in

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a

use."

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682

in

wherein

single

a

party

(1977).

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argument,

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had

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Ct.

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Antar's

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(A28)).

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posted

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indicted

$3-million

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1993,

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conviction-was•reversed 20.

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assertions

transfers

the

Richard

Mitchell

when

indisputably

subjecting

that

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toseize

was

to

20,

was

Complaint

the

himself

reversed

restitution

Mitchell's

claimed

to

whom

Antar

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of

ownership

loan

M.

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Sam

Sam

$50,000

the

ordered

2/

7).

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Sam's

July

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and

Antar

conspiracy

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to

Mitchell

the

met,

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Mitchell

by

is

statement

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paid

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1992,

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of

anaffidavit

April

12,

I995.

Exh.

A.

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15-17).

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21-23): record

will

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parties

show and

and

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record

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family

and

their

will between financial

reflect these

dealings.

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[Sam

Antar]

being

charged

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in

Politan

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i

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his

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they

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(A31)). Judge

21),

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anda

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testified

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of

(A65)).

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4.178

at

on

a

in

trip

cash

Eddy

sales would

Mitchell

or

(A66)). to

Israel

and

Sam

or

Uncle to

directed

proceeds

(Trial

drop

Sam'sson-in-law

Eddy

testified skimmed

in

("Uncle

skimming

cash

a

Uncle

Eddie

either

deposit

in

stores.

record

Eddy

participation

retail

Inc.

the

by brother

Sam's

case,

Sam's

1973,

stores'

Uncle

house,

Sam's

Sam

Eddie,

beginning

that,

that

regarding

Crazy

well-supported

are

In

case.

Eddy")

75

comments

Eddy to

him

testified hold

transcript

the

cash

pick

that cash

it

at

up

accompanied

he in

4.173-

himself

off

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back

an

Israeli

I0 r•

bank

(id.

account Sam

E,

Antar,

testimony. about that where

took

they

needed

(id.

cash

he

cash

the of

amount

between

Sam

M.'s

deposit,

1979

house,

pulled

remainder cash

what

to

bills

was

(id.

1982

they

pay

skimmed

and

testified

He

8.36

at

3/ this

record

understandable claim

the

recusal.

of

Sam's

skepticism

his

reveal

i/

The

to

for

discussions

(A62)).

stores

it

Eddy's

family

at

8.33

allocated

(A62)). million

at

Eddie

packaged and

Uncle

presence

(id.

Crazy

it,

corroborated

M.'s

scheme

from

$6

Given

about

nephew, Sam

themselves,

approximately (A62)).

M.'s

skimming

8.31-32

at

Sam

counted

for

(A68)).

4.192

confirmed

He

the

at

4/

the

to

high

the

the admits. In in conducting

that,

admitted ended of

103,

105-08, 120-23,

(All8,

statements

judge's

statements

the

business

Antar

at

(AI14-15)).

He

in

up

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Dep. personally Israel million

took

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that

$3

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125-26, 126-27,

also

in

134-35, 131-32,

be the

to

from

cash

139-40, 136-37,

to

that

conceded known as stores

(AI01-02)). of custody acknowledged he personally

Antar

the

skimmed

cash

that carried

that

country 143, 154-56, 140, 143-45,

the a

(id.

i

at

230-31 150-

5i)).

4/

This

case

requiring Inc., tobacco

potential

presents recusal.

975

F.2d

industry, health

a

very

•ompare,

different

situation

Haines e._•q_•., 97 81, Cir. 88, (3d 1992) on trial for conspiring hazards from the public,

from

cases

v.

Liggett

Group

(judge

called conceal

the

to

"the

/

finds

actions Antar

came

57-58

not

for

Antar

case,

cash

do

necessary

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this that

M.

he

antagonism

concerned in

others

assertions statements

with

deposition

a

judge's or

and

that

cash total

favoritism other

judge's

the

contradictory the

he

74-75

at

Sam's

to

money,

of

do

Nor

Eddie, Crazy Sam (1/11/94 (id.

bail

degree

Furthermore, Antar

as

and

conduct,

king

of

(continued...)

11

fault.

21)

For

example,

also

stated

(Exh.

C.

at

14,

:

with

dealing

I'm

record

before

is

Sam

the

are

No

accepts in

judge completion

who

be

towards a

judge

is

the

since

completion

of

the

"judicial

Consequently, critical

parties,

(as

the in

of

course

or

or

partiality

a

Supreme

Court

the

Supreme

Court

may, who

bench

trial)

judge's

upon ill

has

been

shown

But

person. for bias and the

knowledge and necessarily and proceedings,

the

or

it

Opinion acquired

in

indeed

are

to

necessary

task.

during

at

the

exceedingly

defendant,

of,

I d.

an

saying.

what

trial be

or

the

do 1157.

of

course

hostile

even

ordinarily

challenge."

Antar

1155:

remarks

cases,

was

I'm

As

recusable

disapproving

their

of

reprehensible

a

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dissatisfaction,

his

wereproperly

sometimes

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the

innocent

Not

challenge. at

thoroughly not thereby

prejudice, produced

track

a

public.

what

bounds

at presides the evidence,

of

disposed

the

Ct.

S.

is

impatience,

recusal

a

114

The

to

That

within

from

Liteky,

have

The the

are

bystanders. Antar family

display --

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as

stated

anger

who

bystander.

innocent in the

one

remarks

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out

bystander.

these

most,

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some

laying

innocent

large

one

me.

not

bystanders public family.

At

Politan

Judge

not

also

See

a

In

that the

counsel,

to,

support

trial

a

bias

or

Huntington

re

4/(...continued) concealment

•,

596

defendants and admitted

swayed

sitting).

by

and F.2d "a

disinformation"); 152, bunch

that

episodes

155-56

of

villains" it would be then before

Nicodemus

(6th

Cir.

during difficult him

a

(judge pre-trial

for if

he

Chrysler

v.

1979)

were

him

called

hearing not

to

the

to

continue

be

12

Associates,

Commons

impatience

with

adverse of

render

Politan's

and

1994) in

"remotely unequivocal

impossible,'"

objective

an

(court's

combination

with

sufficient

evidence

antagonism

that

quoting

ii),

that

the

Liteky,

Mr.

S.

114

to

responsible know.

have

I

bias know

what

that

I

abo•t

it

one

the

Judge

Politan

sponte

from

against

Antar

actual

judge

bias. did not

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judge standard statements

rely

it

is

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not

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warrant

a

out

Politan in

the than

in

recusal

under

the of

test

actual

judged Liteky,

be

held

that

himself

sua

criminal

based

demonstrates absence

that must

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the

court

the

on

true

restitution

recusing of

Judge required

not

rather set

me

of

of

this

not

The

biased

recusal do

jury

quotation

partiality to

appears for

by

that is

solely

while of

appearance

13-16)

recusal The above

no even

to

suggest appearance

of

panel

Antar.

(Pet. that

a

the

Mitchell

To

distribution

error

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have don't

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to

plain

presiding

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don't I

I

an

to

as

5/

Antar,

v.

that.

*

•

relating

and

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at

not I

case.

even

Antar

Sam

committed

asserting

or

is

other.

D

case

judgment or

of *

are.

wrong.

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Eddie

this the

or

mindset

a

against

Statements funds. United

in

way

facts

unequivocally

In

SEC

Judge (Exh.

criminal

is

[Sam]

prejudgment

no

have

mindset

the

the

account

motion

judicial

my

Antar

into

recusal in

with

not

or

Sam's

presented

interfere

not

take

may

denying

evidence

does

2.

observer

in

statements,

whether

s_/

Cir.

1157).

at

Finally,

7,

not

were

judgment

(7th

defendant

of

'deep-seated fair

159

157,

admonition

rulings,

required

would Ct.

and

judicial

the

F.3d

21

its

erred absenc that actual is the

bias,

according judge's

The that

standard.

case

decision

in 9 of the bias. whether to

a

the

13

the

on

following

sentencing

hearing

verdict

for

potential

made

statement

(after in

in

My object been

to

taken

from

held

Court

judge's

a

of

some

criminal Sam

others"

includes

him.

admitted Court

The

to

defendant defendant Eddie

and

"others"

_6/

to

Eddie

allegations conclusion

and

such

a

was

think

that

and

--

the

orders

goal

the reason

he-

issued

improper

was

have

to

in

"others"

in in

a

as

a

Sam

was

witness

in

that

was

a

This co-

named

criminal for

who

trial.

at

the

"others"

those

or

neither

speculation

pure

himself.

fraud

he

is

however, is

testimony

"and

to

"others,"

because

Since

is

reference

committed

fraud

20).

as

a

against

case

Sam

to

stretch

6/

(Pet.

Mitchell

judge's

the

interpretation

in

it

are

against that

could

enforce

reference

the

assertion

Antar's

that

to

testified

cover

and

to

was

always

fraudulent otherS.

proceeding

that

The

at

Mitchell,

has which

one

the

of

the

concerning

I0):

at

that

person

--

i0)

in

A

day

defendant

and

A

public

criminal

Mitchell

nor

a

reasonable

role

(Exh.

the result

reasonable

found

their

from

case

question

a

(Exh.

unanimous

a

20).

most

persons

included

this

at

(Pet.

ambiguous.

of

case,"

argues

to

Eddie's

at

returned

response

to

rulings

(id.

case

as

the

the

civil

it

"a

during

parallel

refers

that

goal

behind

this back

get

activities The

had

restitution

to

Politan

Judge

jury

the

conviction), claimants

by

"others"

him

2,

4)

that

the

allegations

"indistinguishable" is

inadequate must

also

from to

include

support Antar.

against the the

14 s

Finally, United

Sam

States this

Antar

is

correct,

there

is

no

have

charges one

action

the

Commission.

having

_7/

en

its

this

that

goal"

of entered

were

has to

to

has

case

is

the

",reasoning"

him.

decision no

no

United here

Sam.

No

action

possibility

of

using in

a

pending

a

prior

been

granted

seek

rehearing

case

v.

because

criminal

presiding

enforcement

for

States

relevance

Politanis

in

Assuming in

against

civil

there

Thus,

U.S. Attorney 1995 May 26, banc.

I

Judge

Sam,

"improper

the

reasoning

filed.

that

equally

that

paralle

against

Orders

The until

!/

been

the

enforce

petition

pending

8-11)

applies

Antar

v.

of

purposes

(Pet.

argues

only

over

brought the

by

judge

as

a

means

to

case.

extension

an or

to

of

suggest

time

rehearing

?

15

CONCLUSION Antar

discretion shown

not

of

relief for

a

has

failed

in

denying

a

clear

a

writ

writ

of

show

to

and of

mandamus

the

that

the

motion,

recusal

indisputable mandamus. should

For

and to

these

reasons,

the

enior

GONSON

extraordinary the

petition

submitted,

Assistant

to

Counsel

BRODE•ICK

A.

Counsel Counsel

General

Counsel

Litigation

CATHERINE

PAUL

Antar

denied.

be

Principal

Counsel

therefore

right

Respectfully

Of

his

abused

judge

the

Assistant

and

Exchange

General

Solicitor Securities 450

5th

Washington, (202)

May

19,

1995

N.W.,

Street, 942-0933

D.C.

20549

(Quinn)

Commission

Stop

6-6

has

ATTACHMENT