David Sandelovsky

Ex Parte Originating Summons in Geoffrey Varga and William Cleghorn, as Joint Official Liquidators of Bear Stearns High-Grade Structured Credit Strategies (Overseas) Ltd. and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage (Overseas) Ltd. v. The Bear Stearns Companies, Inc., Bear Stearns Asset Management Inc., Bear Stearns & Co., Inc., Ralph Cioffi, Matthew Tannin, Raymond McGarrigal, Barry Joseph Cohen, Gerald R. Cummins, David Sandelovsky and Greg Quental and, separately, the same liquidators v. Deloitte & Touche, LLP, Deloitte & Touche (Cayman Islands), Walkers Fund Services Limited, Walkers SPV Limited, Scott Lennon and Michelle Wilson-Clarke at the Grand Court of the Cayman Islands.

Ex Parte Originating Summons in Geoffrey Varga and William Cleghorn, as Joint Official Liquidators of Bear Stearns High-Grade Structured Credit Strategies (Overseas) Ltd. and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage (Overseas) Ltd. v. The Bear Stearns Companies, Inc., Bear Stearns Asset Management Inc., Bear Stearns & Co., Inc., Ralph Cioffi, Matthew Tannin, Raymond McGarrigal, Barry Joseph Cohen, Gerald R. Cummins, David Sandelovsky and Greg Quental and, separately, the same liquidators v. Deloitte & Touche, LLP, Deloitte & Touche (Cayman Islands), Walkers Fund Services Limited, Walkers SPV Limited, Scott Lennon and Michelle Wilson-Clarke at the Grand Court of the Cayman Islands.

Amended Complaint filed by Geoffrey Varga and William Cleghorn, as  Liquidators of Bear Stearns High-Grade Structured Credit Strategies (Overseas) Ltd. and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage (Overseas) Ltd. against Deloitte & Touche, LLP, Deloitte & Touche Cayman Islands, Michelle Wilson-Clarke, Scott Lennon, Walkers SPV Limited, and Walkers Fund Services Limited at the U. S. District Court for the Southern District of New York.

Cayman Islands-based Walkers Fund Services Ltd. and two of its officers are being sued for a second time regarding their involvement with hedge funds sponsored by New York-based investment bank Bear Stearns that collapsed last year with a total loss estimated at over $1 billion after investing in mortgage-backed securities.

Four individuals and companies in the Cayman Islands have been added as defendants to a civil complaint in the United States in which the liquidators of two Bear Stearns-sponsored offshore hedge funds are trying to recover $1.5 billion. Walkers Fund Services Limited, two of its officers, Canadian national Scott Lennon, and U. S. national Michelle Wilson-Clarke, and Deloitte & Touche (Cayman) have been accused of participating in a scheme to defraud investors in the funds and then cover it up. They were added as defendants in an amended complaint that was filed at the U. S. District Court for the Southern District of New York on June 30, 2008, amending an original complaint that was filed on April 4, 2008. The causes of action against the Walkers defendants are aiding and abetting fraud, breach of fiduciary duty, and aiding and abetting breach of fiduciary duty and, against Deloitte and Touche (Cayman), violations of the Securities Exchange Act, fraud; professional malpractice, gross negligence and negligence; breach of contract, aiding and abetting fraud, and aiding and abetting breach of fiduciary duty.