UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

HONORABLE DICKINSON R. DEBEVOISE

CIVIL ACTION NO. 87-2268 D PHILIP R. BELPASSO,

Plaintiff,

vs. MOTICE OF DEPOSITION OF DEFENDANT AND REQUEST FOR THE SII~ITH BARNEY, HARRIS UPHAFT : PRODUCTION OF DOCUI~ENTS & CO.,

Defendant,

TO r Attorneys for Defendant, Smith Barney, Harris Upham 61 Co. ~atthew Farley Shanley & Fisher, P.C. 550 Broad Street Newark, New Jersey 07102 (201) 64~-1220

SIRS? PLEASE TAKE NOTICE that plaintiff Philip R. Belpasso demands the appearance for the purposes of a desposition under oath st the offices of Shanley & Fisher, P.C., 550 Broad street, Newark, New Jersey 07102, at 9r00 a.m. on October 1~, 1983 and that defendant Smith, Barney, Harris Upham & Co., shall brine all documents and records as described and set forth on the annexed Schedule A. PHILI~ R. BELP~SO 40-09 Kuiken Tkrrace Fair Lawn, New Jersey (201) 797-8382 Attorney Pro Se

DATEDI September 7, 1987

SC~IEDULi P,

1. DEFINITIONS

(a) "Plaintiff means Pfiilip H, iJelpaoso and any

agent, employee, represe:,tetivr or any person actine for, on

behalf of, or in concert with such plaintiff, (b) "Defendant" means Sml:h, Barney, Harris Upham & Co., includinE defendan?'fi officers, s~iar~hoiders,, partriers, agents, employees, represf~tatjves or any person actine for,

or on behalf of such defenlant. (c) "Correspnndence" means, in addition to its ordinary mea;;ing, any rccordine, memcrandu~ or note (fiar~d- written or ctherxis~) of conver:ations or telFphone calls. (d) "Document" or "documents" ~ezns the original or colies if oriEinalfi ere unav;ilabl~, and all non0upllcative copies as well as dract~, regarClese or origin or location, of any written, typed, printeC, recor~ed, m~gnetic, Eraphic or other m;tter of any krnS or descriptio~, in your sztual or constructive pns-efsio~, cu"todg or contrcl, or to which you

have or have hEd accest, includinE, wit:r~ou~ ?imitetion, cor-

respondence , books, pamp~i:E:s, pErlodicelE, letters, memoran-

dua, report~, reccrds, fiiieicial pistc:rieots, tax return·, photo-

Qraphc, chert~, pSctor;rl rcpl·~·,·t·nlatiorl~-, hendrr~ritten or other

notes, workirie papers, eyi~·iic%tion~, tepe or vfdeo recordin~s, compu:cr projiramf, comy~icr topFE, co7.~utc-r p:intnuts, of other transcribed matter, ho~iFVF- ProZur~d Or reproduced, and all corr.piietions of data irorll W~.iCi: informatifn can be obteined.

4. All journals, ledgers, financial statements, loan applications or like documents listing and/or pertaining to defendant, Smith, Barney, Harris Upharn & Co., and of the

representatives of said company listed herein and who have

information concernine plaintiff, Philip R. Eelpasso's com-

plaint.

5. Income tax returns for the years since 1975 for:

Larry Irom, David Warmin, Jack Wilson, Sandra Reeves,

George Nazarian and Steven Crahan.

6. All documents which refer in any way to any allegatione in the plaintiff's Complaint, or which relate in any way to the statements and representations alleged in the Complaint, 7. Any document referenced or referred to in answering any of plaintiff's Interrogatories to defendant, 8. Copies of any and all contracts, agreements, or warranties of any kind with Smith, Ban?ey, Harris Upham 8: Co., or any of its representatives or ap,ents with plaintiff.

(e) "relates to" shall mean the followingl records, memorializes, contains, identifies, describes, discusses, responds to, refers to, reflects, states, pertains to, indicates, deals with, evaluates, analyzes, modifies, com- ments upon, and/or draws conclusion(s) with respect to. (f) "Communication" means any contact oral or written, formal or informal, at any time or place and under any circum- stances whatsoever whereby information of any nature was trans- mitted. (g) "Or" shall have a conjunctiva meaning. +++r* If any of the foregoine documents are withheld under any claim of privilege or for any other reason, each said document should be separately identified by date, author, recipient and subject matter and a statement as to defendant's contentions as to why it need not be produced. 2. DOCLT~V~NTS TO BE PRODUCED 1. All written communications and documents from defendant, Smith, Barney, Harris Upham & Co., including but not limited to confirmations, account statements, prospectuses, reports, brochures, booklets and the like. 2. All documents comprising written communications from defendant to plaintiff or any of plaintiff's representatives. 3. All records pertaining to any brokerage accounts, maintained by Larry Irom, David ~armin, Jack Wilson, Sandra Reeves, George Nazarian and Steven Crahan since 1960.

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSE'Y

CIVIL ACTION NO. 8~-2268 D

PHILIP R. EELPASSO

Plaintiff,

SMITH BARNEY, HARRIS UPHAF~ & CO.,

Defendant .

NOTICE OF DEPOSITION OF DEFENDANT AND REGIUEST FOR THE PRODUCTION OF DOCUMENTS

PHILIP RALPH BELPASSO 40-09 Kuiken Terrace Fair Lawn, New jersey 07410

Attorney Pro Se

pUESTIO?i #1

Using your own definatinns of "document" or correspondence" I would like to know what you (Smith Barney and its employees) have in your possession concerning my case. State requested information below.'

euEsTIow ii~2

For each document or correspondence requested by plaintiff herein, asserted to be privileged or otherwise excludable from discovery, the document, or other requested infornation, shall be identified and the basis for such claim of privilege or other ground for exclusion shall be so stated. +

laUESTION ~4-

Set forth and identify fully any past or formally on-goin~ disputes between "Smith Barney" and any of its present/former clients,

QUESTION #5

Identify all documents, tapes, and written communicatiuns received by Smith Barney from the plaintiff Philip Ralph aelpasso,

cavEsTlo~ ~6

Identify fully and seperately any~document or written communication from the defendant Smith Barney to the plaintiff Phillip R, Belpasso,

~UJSTTON ;Y7

Why did Mr. Georae NazarLan leave Smith aarneS's 8ouston, Texas office? How long after plaintiff's verbal complaint in 12/51 ac- companied by his halt in trading vis-a-vis Smith Sarney did Mr. Nazarian leave his employment?

uUESTlOra ji5

Before Mr. George Nazarian's sudden departure from Smith Barney, did he inform anyone employed by Smith Barney of Mr. Belpasso's verbal complaint? If so, how where they instructed to deal with it? With

him?

puEsTlon ~g

Who, besides George Nazarlan, has or had access to the STOP-LOSE information? Can anyone in the Houston, Texas office gain access to this Information? Is this information availahle to all of Smith Barney's employees/representatives nationwide?

UUESTION $10

When Ms. Sandra Reeves called Philip Belpasso and solicated him for her services as a broker - the plaintiff inquired of her the reasons for Mr. Nazarian's sudden departure. When Mr. Belpasso asked her what the reasons were Ms. Reeves stated that "There has been some kind of problem with him and I am not at liberty to discuss it". I am asking, now, to know exactly why George Nazarian left Smith Barney·s employment and whether or not it has to do with the fact of his telline me that someone was watching my STOP-Loss stratet~y?

MUESTION ~11

~fter giving Ms. Sandra Reeves my permission to purchase a few Call Schlumberger Options, why did she inform me that I never should of received the confirmations pertaining to these five Call Options? She had informed me that there had been a "mistake", what was the mintake? (I had given my consent and, infect, expressed a desire to own these options). If there was an "error" as Ms. Reeves claimed - w~y didn't she transfer the ownership of these options to the other account where they supposably belonged?

~UES'I'ION ~12

Did Sandra Reeves wait to see the perfoPmance of these Options before notifying me of this "error" before deciding which options to trade? i.e., 1 Option, or 5 Options?

~UESTION ~13

Why in David M, Warmins 11/29/82 correspondence did he state that ~s. Reeves had contacted me concernlne the erroneous 5 Call Schlumberger Options, when, infect, she did not? I contacted her after receiving confirmation of my ownersh~p or th~Ye five (5) Options - she didn't contact mel

evssTron f14

Ms. Reeves advised me of an "error", but only after I had phoned her and expressed my delleht in ownership. Accordine to Mr. Warmin·s letter of 11/29/83 ..."at that time, Ms. Reeves advised you of the error and assured you of the fact, that, no liability or exposure was placed upon you regarding this situation". How can this fact be so when my records will clearly show that I was liable and infect under exposure at that time? Please explain in detail below.

BUESTION ~15 Why did Ms. Sandra Reeves tell me that the Exchan~e was notified of the aforementioned error when, infact, they were not?

av~s~P~oN cjilh

Why were the profits from my five (5) Call Schlumberger trans- actions - which my account definately shows thatt I was liable and taking risk for - moved into Mr. Steven Crahan·s account #7349~99? Is there any paper work available that will show any legitimacy to this transfer? What is Mr. Crahan's relationship with Sandra Reeves?

BUESTION ~15 Why did Ms. Sandra Reeves tell me that the Exchan~e was notified of the aforementioned error when, infact, they were not?

av~s~P~oN cjilh

Why were the profits from my five (5) Call Schlumberger trans- actions - which my account definately shows thatt I was liable and taking risk for - moved into Mr. Steven Crahan·s account #7349~99? Is there any paper work available that will show any legitimacy to this transfer? What is Mr. Crahan's relationship with Sandra Reeves?

PUESTIO~ #17

Why, on 12/6/82 at Smith Barney·s Sarasota, Florida office was I denied access to my account and asked to leave (my witness, Mr. Skinner can attest to this fact) by Mr, Hayes, broker? Please, in addition to answering this question furnish ~r. Hayes's statement.

BUESTION ~18

On 12/15/82 Merrill Lynch mailed instructions to Smith Barney to have my account transferred over· to them. Larry Irom, Vice President of Law and Compliance of the New York City Corporate Headquarters stated that my account was "lost" in the in-house mail - and so hap- pened to remain so for approximately 70 day's time, Whey did Smith Barney make more transactions in my account onr 1/7/87, 1/10/81, 1/12/87, 1/13/83 and 1/14/83

After receiving Merrill Lynch's request to transfer my account over to them?

BUESTION ~19

Why, on 12/71/82, did Mr. David Warmin tell Mr. Krauthamer, Director of Rulings and Inquiries that if I continued my investigation into the origin of the g GEO Internatlunal Options that my account would be reduced by the questionatie monies I had received from ~r. Wilson of the Houston, Texas Office?

UUESTIO~ #20

According to Mr, Warmin's letter. of 2/16/R?, the sellin~ (11/22/82) of 10 GEO Internatioria3. Options into my account was an unnoticed error, and was not receonized until I called notice to it in the later part of 12/e2. If this "error" was not noticed, how is it that my account rec- eived 9 expired GEO International Options on 11/2~/821

QUESTION ~21

What was the procedure behind my account receiving the 9 expired GEO International Options which credited my account to within ~50.00 of the money I was complainini~ about being. transferred to Steven Crahan's accownt #3349399? Explain and verify procedure below exactly.

~UESTION #22

Did any of Philip R. Belpas~o·s trarrsactinns in clua*ity and time of sale get purchased by a member of the Houston, Texas Offrce? Particularly 2.000 shares of ICN Pharmaeetlcais stocks which were slanificant (see brief chart in plaintiff's complaint).- pg. 7

QUESTION #23

Why were my written and verbal requests for assistance in redeemin~ my account ignored? Isn't it true that is a client wishes to withdraw his own funds he can do so if he does not owe any money on anything? Why were my requests for assistance in redeeming my- account ignored?-

QUESTION ~24

Why did Mr. Warmin tell Chuck Woodwortil, manaeer of the Paramus, New Jersey office on or about November 1982, not to accept my account's trancfcr from the Houston, Texas Office?

av~sTIoN #25

Why, on 12/6/82, did David Warmin tell the Office Manager of the Sarasota, Florida office not to cooperate with me in getti~ my account out of Smith Barney? (Also involved in this denial is Mr. Hayes - broker in the Sarasota office).

PUESTION 926

Can Smith aarney explain why the final balance transfered out of the plaintiff's Houston, Texas office does not reflect an equitable number? SEC~ION 15 S. E. C. Ruling T'Oij?T~E~f-~c_: PROVISION

CERTIFICATION

I certify that the statements made by me in the

foregoing answers to Interroeatories are true and

correct to the best of my knowledge, information and

belief.

I (we) are aware that if any of the foregoing

statements made by us are wilfully false I am subject

to punishment for contempt of court.

Larry irom; 3~ of Law % Complainck

ai~ecto; of'domplaincel

Jack Wilson, Manager-Houston, Tx.

%huck Woodworth, Manager-Paramus, N;P.i

Sandra Reevas, Broker-Houston, Tx.

~orge riaz.r lan, Rroker' (ior~r j of Houston, Texas Smith Barliey

Mr;Hayes, Broknr-Sarasdta, Florida