Essex Equity Holdings USA,
LLC ( /k/a
Maher Terminals Holdings
Corp.) (“Essex”) is a limited liability company co-owned by brothers and co-Respondents
M. Brian Maher and Basil Maher. In 2007, Essex invested with Lehman and other
investment firms approximately $1.2 billion generated from the sale of Maher Terminals,
M. Brian Maher was the Chairman and Chief Executive Officer of Maher
Terminals Holdings Corp. and is a Managing Director of Essex.
Basil Maher was the President and Chief Operating Officer of Maher
Terminals Holdings Cop. and is a Managing Director of Essex.
The basis of venue in this county,is that this is the county where the
Arbitration is pending. See CPLR 7502(a)(i).
Respondents’ claims in the arbitration relate to their purchase of ARS
from Lehman. ARS are securities with long-term or no stated contractual maturities and
short-term holding periods that offer liquidity through an auction process. Historically,
ARS have been considered safe, highly rated and highly liquid investments. A R S have
existed in the U.S. financial markets for more than twenty years and by July 2007 the size
of the market was estimated to be in excess of $330 billion. In the 23 years between
1984 and August 2007, the ARS market had experienced only a small number of auction
failures. The widespread auction failures experienced in the ARS market beginning in
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