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EBITDA for the first quarter would be roughly half that figure.  

64.Stockman also stated that capital expenditures in 2005 would be limited to $30 million quarterly.  Stockman knew, or was reckless in not knowing, when he made this statement that C&A had already exceeded $30 million in capital expenditures for the first quarter of 2005, and was projected to incur over $50 million in capital expenditures for the quarter.    

65.When asked during the call whether C&A was "tapping out" its liquidity, Stockman answered "no."  Stockman knew at that time, or was reckless in not knowing, that C&A did not have enough liquidity to pay its bills and that his negative response was untrue.  

66.Prior to the March 17 earnings call, Cosgrove previewed the charts Stockman intended to use during the call.  Cosgrove was responsible for C&A's forecasting and budgeting and he knew, or was reckless in not knowing, that these charts contained false or misleading statements regarding EBITDA and capital expenditures.  Nevertheless, Cosgrove did not correct these statements or ask that they be corrected.  

C.March 23, 2005 Bond Presentation

67.On March 23, 2005, Stockman led a presentation to potential bond investors.  The notes C&A had sold in August 2004 were now being resold by their original purchasers, and C&A was helping to promote the resale.  During this presentation Stockman used the same charts he had presented during the March 17, 2005 earnings call.  These charts contained material misrepresentations regarding EBITDA and capital expenditures, as described above in connection with the March 17 call.  Based on this presentation, which Stockman knew or was reckless in not knowing

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