WAYNE PLATT Berenice Kaplan's son-in-law. Acted as the personal advisor to Berenice Kaplan who relied on him. Experienced investor Wharton MBA Seasoned auditor and CPA Director at Houlihan Lokey responsible for reviewing / vetting materials and publications Reviewed all relevant documents Worked very closely with Serge Richard to select investments, arrange leverage

ROLE OF SERGE RICHARD Located in Switzerland. Selected as an independent fiduciary trustee by the Kaplan family Relationship with the Kaplan family predates the disputed investments. Signed investment applications Acknowledged risk of leverage in writing as part of the SMI applications he signed Requested a commission / referral fee from Peat (presumably for his role in selecting the investments and ensuring the purchase) Arranged the leverage / selected the lender and the amount borrowed Signed and approved all loan documents

INDEPENDENT LEGAL REPRESENTATION Stanley Barg Esq was the attorney who represented the Kaplan interests Partner of Duane Morris LLP/Philadelphia office Specializes in international tax law Specializes in the establishment and maintenance of international trusts Specializes in the use of life insurance and structure of offshore investments He designed and oversaw all offshore trusts and structures Independently communicated with the Kaplan Family without defendants' involvement. Relationship with the Kaplan family predates the disputed investments by many years

OFFSHORE LIFE INSURANCE POLICIES Stan Barg arranged for the investments to be wrapped in an IRS compliant offshore life insurance policy without the involvement of the defendants He selected the life insurance company and the foreign jurisdiction The trusts and the policy itself stipulate foreign court jurisdictions The life insurance policy designates an asset manager for the policy unrelated to the defendants This structure insulates the assets from claims by creditors in the USA It also eliminates US income and capital gains taxes The Kaplan Family sought the benefits of being offshore; now they are stuck with the burdens of being offshore.

SUMMARY JUDGMENT WILL BE AFFIRMED 1. INVESTMENT LOSS CAUSES OF ACTION - NO STANDING TO SUE The plaintiffs had more than 2 years to adequately plead their claims re standing to sue for investment losses and produce supporting documentation. Their failure to do so resulted in the trial court imposing evidentiary sanctions against them. The trial court was never provided with ievidence establishing plaintiffs' standing to sue for investment losses. That right has now expired.

SUMMARY JUDGMENT WILL BE AFFIRMED Continued… 2. BORROWING COSTS CAUSES OF ACTION - BARRED BY THE STATUTE OF LIMITATIONS. The Kaplan Family was aware years before filing suit that the investments were losing money and that leverage could work negatively. The Kaplan Family borrowed money to fund the collateral calls years before filing suit. The only reason the Kaplan Family had to borrow money for collateral calls was because Wayne Platt had borrowed $1..8m from the trust s At the time of the original leverage, the borrowers showed that the family could afford the loans and had substantial assets.

THE ROLE OF THE DEFENDANTS Introduced the investors to the Peat Group who acted as brokers / intermediaries Received a finders fee In the investments where the loans were provided by the bank introduced by InterGlobe, there were never any collateral calls Never acted as financial or investment advisors Were never provided with any of the information needed to function in this role (assets, liabilities, needs)

THE TRUE VILLAINS : A. Scottish Mutual International Provided materials to the Peat Group which were passed on to the investors Provided assurances about continuity and stability of annual bonuses Failed to keep the basic commitment to With Profits Bond investors of “smoothing” using reserves to maintain relatively consistent bonuses Failed to manage the assets in the manner promised in their materials – resulting in liquidation of equities at the bottom of the market and then replacing those with almost exclusively bonds which removed the possibility of recouping market losses

THE TRUE VILLAINS : B. Serge Richard and the Trustee Company Failed in the basic duty of any fiduciary Were aware of the risks Knew of the family’s needs, other assets and financial ability to withstand risk

THE KEY DEFENSES OF THE DEFENDANTS : 1. Standing 2. Statute of limitations 3. Nonreliance 4. Unclean hands 5. Estoppel 6. Comparative fault

INDEMNITY CROSS COMPLAINT AGAINST : Wayne Platt (dismissed without prejudice pending appeal) Serge Richard The Trustee Company- Investec