EFTA01406559.pdf

Subject: RE: Southern Financial LLC - KYC and credit derivatives/convertible bonds onboarding [C] [I] From: Xavier Avila < Date: Thu, 29 Mar 2018 12:34:20 -0400 To: Nina Tona Zack Bunimovich Martin Zeman Rita Shteynber ..litan Patel < Cc: Liam Osullivan Mathew Negus Alastair Mackinlay Davide-A Sferrazza Anthony Lentini Ian Salters Zack, is the below sufficient to move on? I would like to onboard client in OTC Credit Derivatives but also GED (OTC Equity Derivs). We have trades on both businesses to execute. Thanks Xavier From: Richard Kahn [mailto: Sent: Thursday, March 29, 2018 11:13 AM To: Xavier Avila Cc: Paul Barrett ; Martin Zeman ; Liam Osullivan ; Davide-A Sferrazza < ; Nina Tona ; Stewart Oldfield Subject: Re: Southern Financial - Client Confirmation [C] attached info is correct thank you Richard Kahn HBRK Associates Inc. EFTA01406559 575 Lexington Avenue 4th Floor New York, NY 10022 tel fax cell W-9 Organization Chart o Per attachment "Southern Financial Operating Agreement" (pages 1, 16) § Southern Trust Company Inc. is the sole member of Southern Financial LLC § Jeffrey Epstein is the sole shareholder of Southern Trust Company Inc. UBOs (Owners) that own greater than 10% o Jeffrey Epstein is the sole UBO (see "Organization Chart" above) The source of funds for the UBOs (owners) that are greater than 10% o Jeffery Epstein began his financial career in the mid 70s as an options trader at Bear Stearns and became a partner in early 80s. Early thereafter, Epstein founded his own financial management firm, J. Epstein & Co., managing the assets of clients with more than a billion in net worth. In the mid 90s, Epstein changed the name of his firm to The Financial Trust Company and based it on the island of St. Thomas in the US Virgin Islands, which merged into Southern Financial LLC. His wealth has come from his days at Bear Stearns and his financial management firms. List of Legal representatives o Per attachment "Southern Financial Operating Agreement" (pages 16) § Jeffrey Epstein, Darren K. Indyke, Richard Kahn Annual report EFTA01406560 o See attachments "Southern Financial LLC Financials June 2017" and "Southern Trust Company Inc. Financials June 2017" for latest financial statements Source of Wealth o As said in above paragraph about the source of funds of any UBO greater than 10%, Jeffery Epstein's wealth has come from his long career at Bear Stearns and his financial management firms. Client Contact o Richard Kahn o 0 Formation Document o Attached LLC Documents include the Articles of Organization From: Nina Tona Sent: Tuesday, March 27, 2018 6:02 PM To: Zack Bunimovich ; Xavier Avila >; Martin Zeman ; Rita Shteynberg >; Jitan Patel Cc: Liam Osullivan < ; Mathew Ne us ; Alastair Mackinla Davide-A Sferrazza >; Anthony Lentini Subject: RE: Southern Financial LLC - KYC and credit derivatives/convertible bonds onboarding [C] [I] EFTA01406561 Classification: For internal use only He did reach out, not sure if they have responded. Thank you Nina Tona From: Zack Bunimovich Sent: Tuesday, March 27, 2018 5:53 PM To: Xavier Avila ; Martin Zeman Rita Shteynber' Jitan Patel Nina Tona Cc: Liam Osullivan ; Mathew Ne us ; Alastair Mackinla Davide-A Sferrazza ; Anthony Lentini Subject: RE: Southern Financial LLC - KYC and credit derivatives/convertible bonds onboarding [C] [I] Classification: For internal use only Hi Xavier, I believe Martin was reaching out to Southern to obtain one more confirmation regarding the KYC information that was provided. We spoke last week. Thanks, Zack From: Xavier Avila EFTA01406562 Sent: Tuesday, March 27, 2018 4:01 PM To: Martin Zeman ; Zack Bunimovich ; Rita Shteynber. ; Jitan Patel ; Nina Tona Cc: Liam Osullivan Mathew Ne us ; Alastair Mackinla Davide-A Sferrazza < ; Anthony Lentini Subject: RE: Southern Financial LLC - KYC and credit derivatives/convertible bonds onboarding [C] Zack/Nina, what is the latest on SF KYC/Extension to Credit Derivs? Thanks Xavier Avila Managing Director Deutsche Bank Securities Inc + 1 From: Martin Zeman cc > Date: Thursday, Mar 15, 2018, 13:08 To: Zack Bunimovich , Rita Shteynberg , Jitan Patel , Nina Tona Cc: Xavier Avila Liam Osullivan , Mathew Ne us < ffie>, Alastair Mackinlay < , Davide-A Sferrazza <davide- [email protected]>, Anthony Lentini Subject: RE: Southern Financial LLC - KYC and credit derivatives/convertible bonds onboarding [C] Classification: Confidential EFTA01406563 Zack — thanks, please keep the foot on the pedal. Also, adding Nina Tona who I forgot to include on last email. From: Zack Bunimovich Sent: Thursday, March 15, 2018 12:29 PM To: Martin Zeman FtitaSl iber• Patel ota Cc: Xavier Avila ; Liam Osullivan us <a; Alastair ›; Davide-A Sferrazza ; Anthony Lentini ‹ > Subject: RE: Southern Financial LLC - KYC and credit derivatives/convertible bonds onboarding [C] Classification: Confidential Classification: Confidential Hi Martin, I'm verifying with the KYC team that the provided documents and the information below fulfills all of the requirements. We have this account set as one of the highest priorities in our pipeline, so operational setups will be focused on as soon as this piece is settled. Thanks, Zack From: Martin Zeman Sent: Wednesday, March 14, 2018 5:09 PM To: Zack Bunimovich ; Rita Shte nberg ; Jitan Patel EFTA01406564 Cc: Xavier Avila ; Liam Osullivan ; Alastair Mackinla ; Davide-A Sferrazza ; Anthony Lentini ject: out ern inancial LLC - KYC and credit derivatives/convertible bonds onboarding [C] Importance: High Classification: Confidential Zack, See attached for what Nina Tona sent in the last email in this chain and I am adding the Formation Document. This should complete everything you asked for in your email from March 13. We have a pending trade with the client in credit derivatives next week. Can you please put this as a priority? Source of Wealth: The source of wealth is Jeffrey Epstein as the sole shareholder. Jeffery Epstein began his financial career in 1976 as an options trader at Bear Stearns and became a partner in 1980. In 1982, Epstein founded his own financial management firm, J. Epstein & Co., managing the assets of clients with more than a billion in net worth. In 1996, Epstein changed the name of his firm to The Financial Trust Company and based it on the island of St. Thomas in the US Virgin Islands, which merged into Southern Financial LLC. All of his clients were anonymous except for the very wealthy businessman Leslie Wexner. His wealth has come from his days at Bear Stearns and his financial management firms. Client Contact: Richard Kahn EFTA01406565 Formation Document: Attached LLC Documents include the Articles of Organization, Thanks, Martin From: Nina Tona Sent: Tuesday, March 13, 2018 11:41 AM To: Zack Bunimovich Martin Zeman < :.; Xavier Avila Cc: Rita Shte nber Mathew Negus ; Jitan Patel >; Alastair Mackinlay ; Davide-A Sferrazza Anthony Lentini Subject: RE: SF [I] [C] Classification: Confidential Zack, I believe some of the below was already provided back in Feb. Please review below and attached to make sure they are sufficient and we'll get back on the additonal. Ownership - Broken down to 10% (Org chart with %'s of ownership or confirmation from Senior Client Rep explaining the ownership breakdown) Legal Reps — Identify and Verify EFTA01406566  UBO's - Identify and Verify Source of Funds — Identification & Verification (Annual Report) Source of Wealth — Identify and Verify Client Contact for Patriot Act disclosure email Formation Document (Cert of Incorp, etc) Nature of Business Doc Organization Chart o Per attachment "Southern Financial Operating Agreement" (pages 1, 16) § Southern Trust Company Inc. is the sole member of Southern Financial LLC § Jeffrey Epstein is the sole shareholder of Southern Trust Company Inc. UBOs (Owners) that own greater than 10% o Jeffrey Epstein is the sole UBO (see "Organization Chart" above) The source of funds for the UBOs (owners) that are greater than 10% o Jeffery Epstein began his financial career in 1976 as an options trader at Bear Stearns and became a partner in 1980. In 1982, Epstein founded his own financial management firm, J. Epstein & Co., managing the assets of clients with more than a billion in net worth. In 1996, Epstein changed the name of his firm to The Financial Trust Company and based it on the island of St. Thomas in the US Virgin Islands, which merged into Southern Financial LLC. All of his clients were anonymous except for the very wealthy businessman Leslie Wexner. His wealth has come from his days at Bear Stearns and his financial management firms. EFTA01406567  List of Legal representatives o Per attachment "Southern Financial Operating Agreement" (pages 16) § Jeffrey Epstein, Darren K. Indyke, Richard Kahn Annual report o See attachments "Southern Financial LLC Financials June 2017" and "Southern Trust Company Inc. Financials June 2017" for latest financial statements Thank you Nina Tona From: Zack Bunimovich Sent: Tuesday, March 13, 2018 11:16 AM To: Martin Zeman ; Xavier Avila Cc: Nina Tona ; Rita Shteynberg Mathew Negus < • Jitan Patel Alastair Mackinlay < ; Davide-A Sferrazza Anthony Lentini Subject: RE: SF [I] [C] Classification: Confidential Hi Martin, I just received the finalized KYC review yesterday. Even though the entity is opened for other products, it is outside of its KYC review date and is triggering a high risk rating. In order to approve the account, the team will need the following: EFTA01406568  Ownership - Broken down to 10% (Org chart with %'s of ownership or confirmation from Senior Client Rep explaining the ownership breakdown) Legal Reps — Identify and Verify UBO's - Identify and Verify Source of Funds — Identification & Verification (Annual Report) Source of Wealth — Identify and Verify Client Contact for Patriot Act disclosure email Formation Document (Cert of Incorp, etc) Nature of Business Doc Thanks, Zack From: Martin Zeman Sent: Monday, March 12, 2018 10:19 AM To: Zack Bunimovich < >; Xavier Avila Cc: Nina Tona • Rita Shteynberg Mathew Negus < ; Jitan Patel Alastair Mackinlay < ; Davide-A Sferrazza Zach Price Subject: RE: SF [I] [C] Classification: Confidential Morning Zack, We haven't heard back from you on Friday. Can you let us know what the timeline looks like today please? EFTA01406569 Thanks, Martin From: Zack Bunimovich Sent: Friday, March 09, 2018 11:30 AM To: Xavier Avila ; Martin Zeman Cc: Nina Tona ; Rita Shteynberg Mathew Negus < >; Jitan Patel Alastair Mackinlay < >; Davide-A Sferrazza Zach Price Subject: RE: SF [I] [C] Classification: Confidential Xavier, The fund was still undergoing a KYC review per my last contact with the team. I will check again today. Thanks, Zack From: Xavier Avila Sent: Friday, March 09, 2018 10:32 AM To: Martin Zeman Cc: Nina Tona ; Zack Bunimovich Rita Shte nber >; Mathew Ne us ; Jitan Patel >; Alastair Mackinlay ; Davide-A Sferrazza Subject: Re: SF [I] EFTA01406570 Zack, what is the status on this urgent request? Xavier Avila Managing Director Deutsche Bank Securities Inc Mobile: +1 Email: On Mar 5, 2018, at 15:09, Martin Zeman < › wrote: Classification: For internal use only Zack, Please go ahead and set them up for credit derivatives as well as convertible bonds. The credit derivatives is a priority and rather urgent. Client is ready to trade. Thanks Martin From: Nina Tona Sent: Monday, March 05, 2018 3:07 PM To: Martin Zeman ; Zack Bunimovich ; Xavier Avila ; Rita Shteynberg ; Mathew Negus < Jitan Patel Cc: Alastair Mackinlay Davide-A Sferrazza ; Mathew Negus Subject: RE: SF [I] EFTA01406571 Classification: For internal use only Martin — Please confirm we don't need SF to be extended for anything else besides credit derivatives and the products already onboarded. Thank you Nina Tona From: Zack Bunimovich Sent: Monday, March 05, 2018 12:58 PM To: Xavier Avila Shte Mathew Negus ; Jitan Patel Cc: Alastair Mackinlay ; Martin Zeman ; Davide-A Sferrazza Mathew Negus >; Nina Tona Subject: RE: SF [I] Classification: For internal use only Hi Xavier, Nothing else is needed from your end at the moment. I will send this request to the KYC team for review and then setup. Can you confirm Credit Derivatives is the only necessary extension? I know Convertible Bonds were also in the discussion. I see the BR 1007494283 set up for a decent amount of products already. See below. EFTA01406572 <image001.jpg> Thanks, Zack From: Xavier Avila Sent: Monday, March 05, 2018 11:45 AM To: Rita Shte nber ; Mathew Negus ; Zack Bunimovich Cc: Alastair Mackinlay ; Martin Zeman ; Davide-A Sferrazza Mathew Negus < >; Nina Tona Subject: RE: SF [I] Thanks Rita. Zack, let us know what next steps are. From: Rita Shteynberg Sent: Monday, March 05, 2018 11:08 AM To: Xavier Avila ; Mathew Negus Jitan Patel ; Zack Bunimovich Cc: Alastair Mackinlay ; Martin Zeman ; Davide-A Sferrazza Mathew Negus ; Nina Tona Subject: RE: SF [I] Including Zack who will be the case manager on this. EFTA01406573 From: Xavier Avila Sent: Monday, March 05, 2018 10:59 AM To: Rita Shteynber Mathew Negus ; Jitan Patel Cc: Alastair Mackinlay Martin Zeman ; Davide-A Sferrazza Mathew Negus < ; Nina Tona Subject: RE: SF [I] Hi Rita/Mat, let us know what we need to extend SF to Credit Derivatives as the client is still live in one trade they want to execute. Thanks From: Rita Shteynberg Sent: Friday, March 02, 2018 12:41 PM To: Mathew Negus ; Nina Tona < >; Jane Varle ; GM ACO ; Xavier Avila ; lain Macara ; Jitan Patel Cc: Alastair Mackinlay Martin Zeman ; Davide-A Sferrazza ; Aziz Anwar >; Tanushree Kirti ; Zack Bunimovich Subject: RE: SF [I] Thanks for the confirmation. We will proceed with the onboarding. From: Mathew Negus Sent: Friday, March 02, 2018 12:34 PM To: Nina Tona ; Jane Varle ; GM ACO ; Xavier Avila ; lain Macara ; Rita Shteynberg ; Jitan Patel EFTA01406574 Cc: Alastair Mackinlay ; Martin Zeman >; Davide-A Sferrazza ; Aziz Anwar >; Tanushree Kirti Subject: RE: SF [I] I'll take this one for Jitan. As CIB green please proceed with the NCA process and the inherent KYC update. Thank you Mathew Negus Director I ICG Business Management I I I From: Nina Tona Sent: Friday, March 02, 2018 12:22 PM To: Jane Varley < ; GM ACO -c alal>; Xavier Avila ; Iain Macara >, Rita Shteynberg ; Jitan Patel ; Mathew Negus Cc: Alastair Mackinlay ; Martin Zeman ; Davide-A Sferrazza ; Aziz Anwar >; Tanushree Kirti Subject: RE: SF [I] Importance: High Classification: For internal use only Jane — NCA is still in progress. Rita and her team are working on it. They stopped the NCA once they found out it was in red. Jitan will inform them EFTA01406575 now to complete the NCA. @Jitan — Please inform Rita to continue with the NCA. Thank you Nina Tona From: Jane Varley Sent: Friday, March 02, 2018 11:04 AM To: GM ACO ; Xavier Avila ; lain Macara ; Rita Shteynber ; Jitan Patel ; Mathew Negus Cc: Nina Tona ; Alastair Mackinla ; Martin Zeman ; Davide-A Sferrazza ; Aziz Anwar • Tanushree Kirti < Subject: RE: SF [I] Classification: For internal use only +Aziz and Tanu Hi Monika, This was a WM US retain from the Offboarding Clearing House process, that currently reflects in the overall CIB file colour (not coverage colour). Hence green. Nina — was NCA completed? We can't see it reflected in dbCAR (still appears delinquent) but I know that is part of the broader conversation that Julia is having with Paul Chapman. EFTA01406576 Thanks Jane From: Monika Valantiejute On Behalf Of GM ACO Sent: 02 March 2018 15:22 To: Xavier Avila ; lain Macara Rita Shteynber. ; Jitan Patel Mathew Negus ; Jane Varley Cc: Nina Tona ; Alastair Mackinlay ; Martin Zeman ca.; Davide-A Sferrazza < Subject: RE: SF [I] Classification: For internal use only Hi Xavier The GB adoption location is Red across all business but this is CIB Green for the US adoption location — as one of the businesses has asked to retain this. @Jane please confirm which business asked to retain? In these instances, the GM products will not be offboarded if another business has asked to retain and the KYC/ACO responsibility sits with that business. However, please also be aware that this is a High Risk client which is KYC deficient and was last reviewed in 2015. Please let me know if any other questions. EFTA01406577 Kind regards, <image002.png> Monika Valantiejute GM Project Mercury Deutsche Bank Winchester House, 1 Great Winchester Street, London, EC2N 2DB Tel. Email From: Xavier Avila Sent: 02 March 2018 13:53 To: GM ACO ; lain Macara ; Rita Shteynberg ; Jitan Patel Mathew Negus < Cc: Nina Tona ; Alastair Mackinla Martin Zeman ; Davide-A Sferrazza < Subject: RE: SF [I] EFTA01406578 Thanks Monica, did we hear anything back? The client is asking questions and we have no clear answers or timeframe to give him. Thanks Xavier Avila Managing Director Deutsche Bank Securities Office: SM. Mobile: From: GM ACO <MMM> Date: Thursday, Mar 01, 2018, 15:09 To: Xavier Avila , Iain Macara , Rita Shteynber , Jitan Patel , Mathew Negus , GM ACO Cc: Nina Tona , Alastair Mackinlay , Martin Zeman Davide-A Sferrazza Subject: RE: SF [I] Classification: For internal use only Hi Xavier I've reached out to Central Mercury to find out the CIB colour - I will update as soon as I hear back. Kind regards, <image002.png> EFTA01406579 Monika Valantiejute GM Project Mercury Deutsche Bank Winchester House, 1 Great Winchester Street, London, EC2N 2DB Tel. Email From: Xavier Avila Sent: 01 March 2018 19:25 To: lain Macara ; Rita Shteynberg ; Mathew Negus Cc: Nina Tona ; Alastair Mackinlay Martin Zeman <~~›; Davide-A Sferrazza < Subject: RE: SF [I] GM ACO, can you pls let us know what the issue is? We have a client trying to execute a transaction. Thanks From: lain Macara Sent: Thursday, March 01, 2018 11:48 AM EFTA01406580 To: Xavier Avila ; Rita Shteynber ; Mathew Negus Cc: Nina Tona ; Alastair Mackinlay Martin Zeman a; Davide-A Sferrazza < Subject: RE: SF [I] Gm ACO — can you liaise with central merc and establish the CIB colour on the rhp below? thx From: Xavier Avila Sent: 01 March 2018 16:08 To: lain Macara ; .R :itaShte iber > ; J itan Patel ; Mathew Negus Cc: Nina Tona ; Alastair Mackinla >; Martin Zeman ; Davide-A Sferrazza Subject: SF Ian, thanks for the call. So Rita who is the Case Manager seems to suggest that she sees Southern Financial Red and therefore we cannot extend it to Credit Derivatives, while we think we should see this Green from a KCP perspective. Bu you explain to me that the Red might be only when it comes to your ICG world. Can you pls clarify if this client is Red for everyone including KCP and if so how do we turn it Green, as discussed this is an example of a KCP Americas account that is ACOed by us, in this case myself. EFTA01406581 Thanks Xavi From: Nina Tona Sent: Thursday, March 01, 2018 11:00 AM To: Xavier Avila ‹ > Subject: SF <image003.png> Kind regards, <image004.gif> Nina Tona Associate Business Control Manager, Key Client Partners — Americas Deutsche Bank Wealth Management 5022 Gate Parkway Jacksonville, Florida 32256 Tel. 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