RETURN DATE: APRIL 21, 2009 : SUPERIOR COURT RETIREMENT PROGRAM FOR EMPLOYEES 7 JUDICIAL DISTRICT OF OF THE TOWN OF FAIRFIELD; RETIREMENT 7 FAIRFIELD PROGRAM FOR POLICE OFFICERS AND 7 FIREMEN OF THE: TOWN OF FAIRFIELD; and TOWN OF FAIRFIELD. v. : AT BRIDGRPORT BERNARD L. MADOFF; TREMONT PARTNERS, INC.; TREMONT GROUP HOLDINGS, INC.; OPPENHEIMER ACQUISITION CORP.; MAXAM CAPITAL MANAGEMENT, LLC; MAXAM CAPITAL GP LLC; MAXAM CAPITAL MANAGEMENT LIMITED; SANDRA L. MANZKE; ROBERT I. SCHULMAN; WALTER M. NOEL, JR; JEFFREY H. TUCKER; ANDRES PIEDRAHITA; PETER B. MADOFF; RUTH MADOFF; : MARK D. MADOFF AND ANDREW H. MADOFF é MARCH 26, 2009 AKEIDAVIT. Edward H. Siedle, being duly swom, does depose and say: 1. Lam the founder and President of Benchmark Financial Services, Inc., (“Benchmark”), a securities broker-dealer registered with the U.S. Securities and Exchange Commission (“SEC”) and a member of FINRA, the brokerage industry’s self-regulatory organization, Founded in 1999, Benchmark is an investment banking, institutional trading and consulting firm located in Ocean Ridge, Florida, The firm is unique in investigating securities and money management abuses, primarily on behalf of pension funds. As a result of our representation of pension investors with substantial assets managed by money ‘managers, we are afforded, in connection with our due diligence reviews, enhanced agcess to public and 8 3 non-public information regarding the investment management industry. Benchm@kktias pidffecregetine oe Se ‘emerging field of forensic investigations of pension investment management.Within this area of specialization (investment management), Benchmark has focused upon conflicts of interest and self-dealing involving investment consultants retained by pensions to provide objective, expert advice regarding asset allocation, manager selection and performance monitoring. We have focused in this area because corruption of or, self-dealing by, “gatekeepers” to pensions can undermine the integrity and investment performance of the entire pension plan. In two unprecedented and related investigations around 2001, the firm advised the Metropolitan Government of Nashville and Davidson County and the City of Chattanooga regarding pension consultant abuses involving their respective $2 billion and $120 million public pensions. In 2003, the firm was asked to assist the Office ‘of Compliance and Inspections of the SEC and the Government Accountability Office in their investigations of pension consultant industry conflicts of interest and business practices. In 2005, these agencies, along with the Department of Labor, issued findings substantially based upon Benchmark’s investigative insights confirming that conflicts of interest were pervasive in the industry and poorly disclosed. As President of Benchmark, I was invited in 2004 to conduct a closed-door training session regarding pension consultants for securities examiners at the North American State Securities Administrators Annual Training Conference. ‘The firm has advised the New Hampshire State Securities ‘Commission and has worked closely with the Attorney General of the State of New York, the State of Florida Division of Securities, and the Federal Bureau of Investigation. Benchmark currently serves as the investment consultant to the Orange County Sheriff's Deferred Compensation Retirement Plan and formerly as the consultant of consultants (reviewing consulting candidates for independence and lack of conflicts) for the Orange County Deferred Compensation Retirement Plan. Ihave been an invited speaker on retirement plan issues at the National Sheriff's Association Annual Convention.Benchmark has also focused upon investment management securities trading abuses, such as violations of the Codes of Ethics registered money managers are required to adopt and enforce under the federal securities laws. These Codes, designed to prevent fraud and self-dealing, reflect the heightened fiduciary duty applicable to money managers under federal and state securities laws. Front-running and illegal soft dollar/directed brokerage schemes are examples of trading abuses that can undermine investment performance of pensions. The firm has undertaken investigations of all these abuses. 2. My work at Benchmark represents a continuation of work that I have been engaged in for over twenty-five years. Since 1983, I have been responsible for investigations worldwide, from Guam to Bermuda, involving in excess of $1 trillion in assets. Many of these reviews have involved non- traditional or alternative asset managers, including hedge funds. I recently completed an investigation of six hedge fund of funds and over 100 hedge funds for a $1.2 billion public retirement system. Asa securities industry entrepreneur since 1990, I have owned and founded three successful securities firms, two as joint ventures with publicly-traded companies, and have passed three principal/ supervisory examinations, one general industry/product examination and two state securities law exams. Iam a licensed General Securities Principal (Series 24); Financial and Operations Principal (Series 28); ‘Municipal Securities Principal (Series 53); General Securities Representative (Series 7); State Securities ‘Agent (Series 63) and Combined State (Series 66). Ihave served as the Compliance Director of all the securities firms I have founded in the past 19 years. While attending Boston College Law School in 1982, 1 interned at the Boston Regional Office of the SEC and assisted in examinations of registered investment advisor compliance with applicable laws. Upon graduation from law school in 1983, I served as an Attorney Adviser in Finance with the SEC's Division of Investment Management in Washington, D.C., the Division which regulates mutual funds