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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
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States
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King Fifth
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
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Bank
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Q L•
those
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A
did
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L2
L3
with
L4
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L5
were
16
telling
take
Yes.
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Q
Do
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or
19797
in
place
conversation
1978.
recall
you
specific
a
conversation
Solomon? don't
I
--
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know
in
1978
us
anyone
like
Hotel
21
A
!
in
in
attended
we
has
cash,
seminar
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leave
we
in
it
Israel,
Switzerland.
the
held
conference
at
the
Hilton
Israel?
No,
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the
Q
22
that
Was
Q 2O
Israel
but
conversation,
it.
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1e
in
being
the
exactly
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Oh,
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in
Jerusalem.
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Solomon,
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1978 ;.,•
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8
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them
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15
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mother,
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with
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to
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yes.
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23
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KENEALLY:
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know,
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to
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April
it
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Why
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KENEALLY:
to
have
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those
dates?
14
15
that
16
A
looking
MS.
KENEALLY:
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reflect
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7
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time?
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Direct
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because
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shows
record
decided
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page?
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19807
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7
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number
31332 "
19807
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you
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on
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11
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come
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18
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19
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MR.
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The
notation
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,
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yes.
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home?
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7,
notation
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Solomon
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14
24
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23
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you
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MR.
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Focusing
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do
you
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cash
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let
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25
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to
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13
16
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14
of
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set
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20,
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10
MR.
GERSTEN:
Of
11
MR.
SIMPSON:
Right.
Did
you
says
I
A
12
13
Q it
If
A
14
15
MS.
know
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now
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20,
make
that
made
deposit?
it,
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it
it.
made
I
KENEALLY: made
'82?
is:
question
Do
you
not?
or
THE
WITNESS:
I
MR.
SIMPSON:
Let's
don't
remember.
don't
I
mark
this
the
as
next
exhibit.
20
21
of
remember.
18 19
cash
20?
you
16 17
of
it?
Q
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deposit
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Yes.
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6
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says
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22
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deposition
24
words
25
top
exhibit
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left,hand
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but
..
COURT .
dated it
says,
REPORTERS
:
April
20,
"Deposit (201)
1982
of
994-2940
and
foreign
at
the
/
!/i
Antar 1
currency"
2
A
in
English?
Does of
5
A
the
first
8
A
the
Yes
9
the
II
A
refresh:•your who
the
Leumi
made
recollection
that
--
deposit
April
on
of
million
a
dollars
at
19827
20,
Yes.
A
did
Where
Q
the
cash
from•,;
come
Me.
14
Q
Okay.
15
•.
Let
me
Was
the
just
back
for
up
foundation
a
question,
16
17 1,8
pardon
a
19
....
bottom
......
--
Bank
12
13
that,
person
Q
i0
the
on
appear
sir.
Yes, Does
were
signature
your
yes.
Q you
........
page?
Oh,
6
7
155
Yes.
,
4
Direct
-
me?
Q•
P0es
21
Yes.
22
it
that
24
A
25
When
h
cas
deposit
made
in
in
cash?
•,
d.eposit anything
say
that
the
form
of
cash?
else?
,
Q
23
•
the
Was
20
form,of
that
you
say
the
cash
maintained
:you
in
from
came
your
you,
was
home?
Yes.
Q
Did
any
portion
of
the
million
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by
it
putting
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container?
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keep
you
the
with
container
you
on
Israel?
Did
18
At
the
19
Q
anyone
present When
dollars,
did
you
21
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and
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22
A
23
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accompany I
so.
20
A
the
yes.
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25
transport
you
was
Did
I
time?
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Q
24
else?
•
flight
16
17
where
home?
your
else.
That
Q
15
than
come
Yes.
13
the
other
dollars
way.
0
14
no
How
Same
A
million
the
Israel?
A
11
12
where
Q home
of
home. And
No
else?
part
any
else,
Q
8
9
Did
My
156
me?
Q
4
7
anywhere
Pardon
Direct
-
don't
make
I the
that
deposit
Center
meet
you
of
with
who,
don't
made
of
in
Dov
trip? though.
remember
deposit
Bank
this
on
remember
moment
you
you
who.
the
million
theForeign Leumi?
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at
that
9•
I
believe
I
-[i
did.
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i
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2
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3
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4
signatory
5
A
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.
added
as
this
as
mark
is
document,
two-page
(SEC-22,
a
the
next
for
marked
identification.) Antar,
Mr.
Q marked
exhibit,
14
document,
15
A
is
18
A
that
on
at
the
22.
the
document?
the
this
you
made
a
that
document
a
$600,000?
of
deposit
signed
you
Yes.
Q
19
Into
12245?
number
account
Yes.
A
21
A
of
corner
signature
your
Is
Q time
right-hand
s
this
of
page
what
Yes.
16
17
that
of
copy number
second
the
bottom
the
at
a
exhibit
deposition
SEC
as
nowhave
you
Turningto
13
:
Q
Where
Yours
truly.
the
did
cash
from?
come
Can
SIMPSON:
MR.
23
24
else
document.
12
22
;SIMPSON:
MR.
been
20
anyone
No.
I0
ii
was
when
account?
that
to
8
9
account,
time
the
to
subsequent
time
any the
up
6
7
230
Direct
-
read
you
the
response,
please? (The
25
FEDERAL
last
COURT
answer
REPORTERS
is
read
(201•)
back
994-2940
by
the
150
Antar 1
court
Direct
-
231
reporter.)
t
•
2
Myself.
A
3
How
Q
4
the
5
A
United
States Same
6
carried
8
A
I0
A
11
been
was
in
that
a
container
in
which
of
the
you
cash?
me
Q
Your
She
and
might
also
have,
she
I
You
wife.
my
wife
two,
or
Q
12
from
o
Yeah,
one
$600,000
Israel?
to
And the
9
the
transport
you
way.
Q
7
did
don't
carried
some
might
have.
cash?
might
It
have
know.
don't
remember?
/
:'i
13
A
was
Q that
16
A
in
was
I
17
the
believe And
Q
18
time
19
A
that
22
the.
23
1984.
marked
in
that
was.
you
made
last
SEC
as
line,
up
the
your
last
remaining
cash
home?
this
deposit
account
number
amount
of
down
on
exhibit
there
It the
ceiling
Moving
24
25
$600,000
opened
you
Q been
this
at
the
same
12245?
Yes.
20
21
,j
No.
14
15
%
says,
is
the
first
number
a
at
20,
notation
dated
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of
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21,
.r
A/C
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in
$964,884."
151 FEDERAL
COURT
REPORTERS
(201)
994-2940
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
Because
and
impossible,
make
to
of
over
and of
States,
false 169
F.2d
353,
"heard
354-55
(9th
testimony
which
of
appellant
mentioned In
Antar's
Cir.
not
therein
in
addition,
the
not
connection
Supreme
remand,
held
and
fact
that
for be
not
never
related
case.
members
of
United
States
B.
judgment
of
not
a
correct,
of
the
on
a
Made Not
Antar
case
are
what has for
second
a
trial
is
a
would
judicial
of
554
a
judge
anything
after F.2d
who
about
disposable
discarded
A
system.
by
heard
or
create
has him
judges
665,
Cir.), i• i!•
iI ¸ III
by
Politan Judge Deep-Seated Impossible.
in
Such
not
deep-seated
impossible,
a
use."
(5th
682
in
wherein
single
a
party
(1977).
Show
does such
1155):
proper its trials
the
trial
system be
I000
Judgment
his
if
him
may
U.S.
Fair
demonstrated
in
Archbold-Newbal],
Do
Although has
is
Case
at
refutes
•L•
with
Statements
Liteky
•i
insist
judiciary
434
upon
defendant
in
It
in successive defendant.
new
to
contact
v.
denied,
cert.
case
was
difference.
allowed
the
same
name
of
and
in
case
"prejudice" result
proceedings.
argument,
"Ours
a
had
evidence.,,)
Ct.
S.
or as
normal
administration
into
come
a
a
Antar's
difficulties
the sit same
is
without
Finally,
should
the
Antar
distinction
"bias"
as
to
involving The
deprecatory
earlier
in
damaging
to
regarded sit
very
as
judges
by in
appellant's
(114
judge
another
reasoning
stated
subject
in
[and]
Court's
court
where
given
with
characterization
opinions learned they been long to judge
trial
agent
defendant
a
The
argument.
(bench
narcotics
a
was
Also
1948)
explicitly
does
Prior
that
argue
antagonism he
the
Criminal
Antagonism
as
argue,
Judge to
after
to
as
make
Politan fair
citing
Make
7
Liteky,
that
recusal" an
the
(Pet,.13)
fails.
The
do
judge
June
II,
securities
(Exh.
A
four
6).
at
He
(Exh.
intervene
in
A
the
to
(6/30/94
Sam
that
Z/
Ross
at
Mitchell's A
at
funds 1
bail
had
money the
was
to
(A28)).
a
to
(id.
Sam
then
to
be
the
paid
to
the for
turn-
himself
as
bail
(A5)). his
purported
motion at
to
¶ 9).
intervene, he
But
out
borrower,
that
submitted
a
thereby
Letter-Memorandum
on
to
in
by
for
fraud
sentenced
pointed
(7/5/94
turn-over
motion
his
trustee/receiver title
a
about
loan
mail
sought
Sam
posted
In
indicted
$3-million
Intervention
money.
this
commit
1993,
pay
oppose
in
conviction-was•reversed 20.
to
assertions
transfers
the
Richard
Mitchell
when
indisputably
subjecting
that
in
toseize
was
to
20,
was
Complaint
the
himself
reversed
restitution
Mitchell's
claimed
to
whom
Antar
•on,
Subsequently,
case
inconsistent
of
ownership
loan
M.
made
Sam
Sam
$50,000
the
ordered
2/
7).
at
criminal
trustee/receiver of
and
for
attempt
Sam's
July
on
and
Antar
conspiracy
and
convicted
was
Antar's
Antar,
fraud
argument
case.
to
Mitchell
the
met,
objectively
Mitchell
by
is
statement
impossible
is
this
relating
incarceration
years
it in
paid
mail
and
restitution
over
decision
1992,
viewed
--
for
criteria
conclusory been
that
Statements bail money
i.
On
fair
a
this
statements
all
meets
standardhas
demonstrate
not
render
to
that
Liteky
the
challenged
context--
action
Assuming
that
argument
for
inthis
"record
of
anaffidavit
April
12,
I995.
Exh.
A.
/
contradicting asserted
had
made
until
15-17).
Mitchell
When
Sam
Sam
of
He
the
on
loan
a
money
Antar
M.
the
Sam
that
that
Affidavit
ownershi
Sam
at
the
challenged
bias,
withholding
to
was
decision
Mitchell's
the the
bias.
Sam's
on
in that
For
money.
at
to
explain
the
caution
questionable example,
18,
fact
rather
21-23): record
will
interaction
parties
show and
and
this
and
the
record
interreaction
family
and
their
will between financial
reflect these
dealings.
Right
now
he's
[Sam
Antar]
being
charged
the lead than
in
Politan
with
i
that
would
attempt
Judge
his
that
record
judge,
on
asserts
the
appropriate
highly
C.
at
prior
discovery
and
the
C
to
party
6-7)
However,
conclude
exercising
bail
19,
at
(Pet.
well-founded
were
observer
exhibiting
of
(Exh.
statements
statements
appearance
been
separate
money of
(Exh.
assets
not
allowed
bail
number
these
statements
objective
the
be
had
to
the
to
his
of
he
should
a
quotes
create
that
of
p
extent
motion
s
discovery
the
he
Sam,
on
provided
Politanmade
Judge
C.
decision
protested
and
issue
ruling.
(Exh.
due
money but
(8/31/94
regarding
proceedings
seize
Antar's
loan.
a
transaction,
from
company,
suspended
trustee/receiver
an
Mitchell
son-in-law's
Politan
intervene
they
was
(A31)). Judge
21),
$50,000
the
unrecognizable
to
remained
4-5
the
that
legally
some
his
to
nevertheless
¶¶
claim
available
made
was
prior
in
that,
money he
his
to
stated
certain activity in connection of
part record, across
the his
does
Sam
based
not I
case.
all
in
here
with
testimony close
can't
a
that
my
I to
eyes
•as his
to sorts
stock is the run
dollars
of
strapped are
he in
So
limitations
millions
Israel
come
the
upon
of
statute
There
Eddie
Crazy
proceeding. was testimony
carrying
to
what-have-you.
the
to
SEC there
Moreover,
whether about the sea
not,
or
it.
relative the
with
body things.
of
halo heard it or
on
his
in
this
and
'
head
blinkers
put
on.
%
I'm
telling
the
trial,
youthe that
testified.
Court
his
His
is
nephew
got
got
having
aware,
brother
the
on
the
on
Sat
stan•
andtestified.
stand
t
***
i'm
What
saying
blinkers If
you I say I know
it,
heard
I
is
to
and
on
this
Court heard is
never
there
between
interrelationships money floating
through and
cannotput
that. lot of
a
these
anda
people
itl
heard
I
lot
of
around. J
judge's
The criminal
the
testified
scheme
at
half
the
of
(A65)).
(id.
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
would
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
skimmed
Dep. personally Israel million
took
and
that
$3
nearly
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
which
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
The the
dissatisfaction,
his
wereproperly
sometimes
are
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 --
immune
as
stated
anger
who
bystander.
innocent in the
one
remarks
or
annoyance
family
there
out
bystander.
these
most,
innocent
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
Furthermore,
judge standard statements
rely
it
is
be
not
trial
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
Court
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
over
have don't
absolutelyand
the
to
plain
presiding
argues
is
don't I
I
an
to
as
5/
Antar,
v.
that.
*
•
relating
and
*
at
not I
case.
even
Antar
Sam
committed
asserting
or
is
other.
D
case
judgment or
of *
are.
wrong.
States
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