referred to Mr. Casey the issues relating to their clients’ purchase of A R S from Lehman
in the hope that a criminal investigation might be launched against Lehman.
On information and belief, in 2008 Mr. Casey’s Unit launched a criminal
investigation into ARS sales at Lehan, including the sale of such securities to
On October 2,2008, the Wall Street Journal published “The Auction-Rate
publication is annexed as Exhibit F. The Article asked “Did L e h a n defraud the Maher
brothers?” and reported that “Brooklyn Prosecutors are probing whether Lehrnan put the
securities in the brothers’ and other customers’ accounts despite knowing the market
could collapse.” The Article further reported that the Mahers were cooperating with the
Mr. Casey supervised the Investigation. Among other things, thxee Grand
Jury subpoenas were issued under his name requiring Petitioners Gourd, Greenspan and
Haber to appear before a grand jury and give testimony.
Petitioners Learn Mr. Casey Joined K&K And Promptly Raise Concerns About Mr, Casey’s Involvement And K&K’s ContinuedRepresentationOf Respondents In The Arbitration
In or about October 2009, counsel for Petitioners learned that Mr. Casey
had joined K&K. Petitioners’ counsel, of course, had no idea whether Mr. Casey was
worhng on the Arbitration, whether ‘he had shared confidential infomation, whether
K&K was screening him from the Arbitration and, if so, when the screen was
implemented,how it had been implemented and whether it was effective.
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