Testimony, 2009-03-03

EXHIBIT 296¶

THE VIRGIN ISLANDS OF THE UNITED STATES ECONOMIC DEVELOPMENT AUTHORITY MAR 03 2009 OFFICE OF ECONOMIC DEVELOPMENT COMMISSION ST. CHOIK, V.I.¶

MEMBERS PRESENT¶

ALBERT BRYAN, JR., Chairman JOSE PENN, Member BERNE SMITH, Ch. O., Member¶

STAFF PRESENT¶

[REDACTED] CLOUDOH, CEO STACET FLASKUTT, ESQ., Legal Counsel PAUL FLIDKING, Director of Applications ESTHER JOSEPH, Analyst¶

PORTER’S COURT REPORTING, INC. P.O. Box 11003 St. Thomas, Virgin Islands 00001¶

INDEX
1	2	3
ITEM	DESCRIPTION	PAGE
3	No. 1 Meeting Called to Order	3
4	No. 2 Roll Call	3
5	No. 3 Review and Approval of Agenda	4
6	No. 4 Cases for Public Hearing:
7	a. Alliance Management Partners, LLC	4
8	b. International Capital & Management Company, LLC	32
9	c. Americas Management Services, LLLP	61
10	d. Cruzan VIRIL, Limited	83
11	e. Emerald Beach Corporation	94
12	f. Glacial Energy VI, LLC	111
13	g. Vactical Enterprises, LLC	156
14	h. Financial Trust Company, Inc.	170
15	(Hearing Adjourned.)
16
17
18
19
20
21
22
23
24
25

1 MR. PENN: Mr. Chair, I’d like to 2 move that this agenda for the EDC Public Hearing of February 3 12, 2009 be approved as presented. 4 DR. [REDACTED] Second. 5 THE CHAIR: Properly moved and 6 seconded. All in favor? 7 (Chorus of Ayes) 8 THE CHAIR: Unanimous. 9 Cases for public hearing, [REDACTED] 10 [REDACTED] 11 [REDACTED] 12 [REDACTED] 13 [REDACTED] 14 [REDACTED] 15 [REDACTED] 16 [REDACTED] 17 [REDACTED] 18 [REDACTED] 19 [REDACTED] 20 [REDACTED] 21 [REDACTED] 22 [REDACTED] 23 [REDACTED] 24 [REDACTED] 25 [REDACTED]¶

WIT: S. P. DATE: 5/9/03 Goldy Gold, RPR¶

TRANSCRIPT BY PORTER’S COURT REPORTING, INC. 040)775-242S¶

ITl 1 M, the company’s comptroller and of course you already 2 know Enka Reechois also representing the company and 3 specializing In EDC matters, someone who has been an 4 assistance to them in making the application to you to make 5 sure it was In good order. 6 we appear today to ask your approval to extend my 7 dent’s existing CDC benefits with the exception of a 8 single modification going forward. The request is that the 9 minimum employment requirement be adjusted from II to IC 10 persons. The representatives of the company will speak to 11 you just a little bit more about the reason for that 12 request. 13 In order to expedite the process because it 14 afternoon and I know you’ve been here a long time, I would 15 like to just defer now to Mr. Indyke and let him tell you a 16 little bit about the company and what it does. And I hope 17 well have an opportunity to lot you hear about some of the 18 quite unusual things that this company has done over the 19 porlod of Its first certificate to contribute to our 20 community. 21 So with that Mr. Indyke. 22 MR. INDYKE: Good afternoon, 23 everyone. As Miss Hodge said my name Is Darren Indyke. I 24 am the President and the Director of Financial TruSt 25 Company, Inc.¶

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2 3 4 5 6 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 170 Menne THE CHAIR: Financial Trust Company. (Thereupon, Maria Hodge, Esq., Owen Indyke and were duly sworn and testified as follows:) MS. HODGE: Good afternoon, Members of the Commission, Commission Staff. My name is Maria Tankenson Hodge. tam the general counsel for Financial Trust Company, Inc and have been their general counsel in the Virgin Islands for many years. I am accompanied today by Darren Indyke, the president of the company Immediately to my right, by Jeanne¶

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172 1 Ed like to take tells opportunity to thank you for 2 allowing us to appear before you and In support of our 3 application. And I thought I would start just by telling 4 you a little bit about myself and how I came to be here 5 before you today after which III give a One Summary of 6 the company and then Miss and I would be Pleased to 7 answer any questions you may have. 8 1 graduated Colgate University in 1986 with a 9 bachelor’s degree in education and economics. After 10 graduation I began working for a small boutique law firm al 11 which the founder of Finandal Trust Compary. Mr. Epstein, 12 was a client. 13 Finding that the practice of law was enjoyable or 14 seemed to be enjoyable, I followed that up by going to is Cornell Law School where I obtained my law degree ifl 1991 16 After graduating from Cornell I went back to that same 17 boutique firm of which Mr. Epstein was In fact a omit ano 18 continued there and then went a brief stint to a large 19 national law firm. That was for about five and a hall 20 years. 21 At the end of that period I was given on 22 incredible opportunity and that was to go join and work 23 closely with Mr. Epstein who had become kind of my mentor. 24 So I guess you could say I’ve been working for him as an 26 attorney, advisor, a personal representative for over 20¶

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1 years now. I was with him when he first came to the islands 2 In 199$ and when he opened the company’s doors more than ten 3 yen ago. 4 During this time I’ve teen actively involved with 5 the company and Its operations and I’ve worked closely with 6 the members of its staff. And in that regard IV Iste you 7 to know that both Mr. Epstein and myself have the utmost 8 respect for tne memters of Financial Trust Company’s start 9 They are a talented, dedicated group of people and we are 10 very, very fortunate to be working with them. 11 In September 2007 Mr. Epstein asked me to stand 12 in for him at that time and for any period that he may be 13 required to be absent from the territory. And since then 14 I’ve served as the company’s president and will continue to 15 co so until Mr. Epstein’s return, which Is to say that I am 16 here only temporary until Mr. Epstein returns and resumes c; 17 chairman and the president e4 the company. I’m here to 18 watch over and sareguarc what he believes Is a very 19 Important endeavor and some very wonderful people. 20 itt me tell you a lithe bit about Financial 21 Trust Company, Inc. It’s a financial services company and 22 we provide kind of a broad range of flnandal, economic and 23 business consulting services. They would include investment 24 advice, asset management, advice and assistance with asset 25 management and structuring and negettating finance and¶

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1 business transactions. We market our services to 2 Individuals, to trust foundations and a variety ce business 3 entitles. 4 I will say that the company has enjoyed a 5 successful ten years In the territory and we’ve provided, I 6 think, wonderfLi benefits and opportunities for Our 7 employees and In the community at !arr. And Mr. Epstein 8 and FDC I think have no an incredibly, positive economic; 9 impact on the community and with our employee staff. And 10 I’m very proud of that record. And I think this is 11 something. Fm sure this is something that I would like to 12 continue well into the future. And that’s why we art here 13 before you today. 14 So with that introduction done I think it would 15 be appropriate If you have any questions MISS and 16 myself will be pleased to answer. 17 THE CHAIR: I trunk one of the 18 things of significance is that like now we’re seeing the 19 first graduating class of the designated service businesses 20 because yOu guys was on the first tip of that wave when it 21 stetted coming In and Coming back for extensions now. And 1 22 guess we’ll be seeing a lot of these in the following years. 23 I remember when you go to school they tell you 24 look at the person on either side of you. They won’t be 25 there when you graduate. So I guess for us that’s what we¶

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1 are Seeing now. You guys have survived. 2 And in reviewing the application I was relay 3 imprened by It because I mean you guys did It right. You 4 really contributed to the economy. You made good on your 5 promises to the EDC and the people of the Virgin Islands. 8 And it’s actually a peasure again to see the application 7 come forward. 8 One of the questions) had was — correct me if 9 I’m wrong. Counselor • • Mists subject to the Same five and 10 ten year rule in the extensions¶

11 MS. PLASKETT: Presently, yes. 12 THE OIAIR: So what is it are you 13 ask ng for the five years or the ten years? 14 MS. KELLERHALS: We are asking for ten at 15 a 100 percent or benefits In the application. And that was 16 by virtue of our belief that the statute -• you know, If you 17 looked at tne rules of statutory construction and due to the 18 fact that they first received their certificate in 1999, 19 they would be subject to the previous legs/alien which 20 allowed for a 10-year extension at a 100 percent of 21 benefits.¶

22 I know that we hove sort o been down that road 23 and may not know whether or not the AG’s office has ruled or 24 if there has been any I haven’t seen anything that came 25 cut or the EDC office es to the policy. But obviously we TRANSCRIPT BY PORTER’S COURT REPORTING. MC. (340) 775 2471¶

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seek the maximum benefits Mat are allow/Me. 2 THE °MIR: I tNnk we cad get a 1 ruling from the AG’s office. 4 MS. PLASKETT: The Attorney General 6 didn’t vie on this one. It was on the residency issue 6 M.S. KELLERHALS: Residency. 7 MS. PLASKETT: there was an opinion that came out rrom the board’s counsel about this. 9 MS. KELLERHALS: Okay. I wasn’t suns if 10 an AG, opinion had been requested which I thought was what 11 was happening now. 12 THE CHAIR: simile Ward counsel 13 submitted an opinion — now 18m remembering •• which was 14 not In fever or your Walt on. 15 MS. KELLERHALS: I also thought that I 16 understood that certain centRates had teen reissued with 17 an extended period Of Dements. 18 THE CHAIR: No. What we did was we 19 pave tne benefit of the five years at 90 percent and we are 20 lobbying the Legislature to have the law repealed. That’s 21 what we did. That was Me short way of getting the 22 applications through and getting everybody their tax 23 benefits without waiting for the legislature to.maise a 24 decision. 25 MS. KELLERHALS: So you did five years at¶

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1 a hundred? 2 THE CHAIR: At 90. 3 MS. KELLERHALS: At 90. 4 THE CHAIR: And we are in Use 5 process of making several changes to the EDC laws as you 6 know and we’ll oe back before the Legislature before the end 7 of this year. 8 MS. KELLERHALS: Obviously wet take the 9 maximum allowable. 10 THE CHAIR: Well, the maximum 11 allowable would be five yearS at 90 percent, depending on 12 how you stack it. Ten years at SO may be more profitable 13 for you. 14 Mr. Penn. 15 MR. PENN: I guess after the 16 Chairman talked to you being the graduating class, my 17 concern is always looking at tne past ten years what needs 18 to be done differently to make h even more successful or 19 both parties from your vantage point? That’s something I’d 20 like to hear about. 21 MR_ INDYKE: Well, certainly we would 22 love to hear any suggesti3ns that EDC has In that regard. I 23 think we’ve had a very successful track record both In our 24 philanthropic giving, in our training program. We have 25 promoted people from witiin and Miss will speak to TRANSCRIPT BY PORTER’S COURT REPORTING. INC. (340)??5-2429¶

beyond that we held presentations and a QM session at the 2 MCM Center where I think the five Nobellsts and Edwin 3 IMMI Jr. was also there to have their presentations and 4 answer questions. And that was, I Mirk, attendee by 300 to 5 400 high school science students from across the island. 6 So we’ve toed to do some very interesting and 7 innovative things. If you look at Appendix I n the 8 application you’s see the record of the philanthropic and 9 charitable giving and you’ll note that there has been a 10 strong emphasis on education, on school enrichment, on 11 sporting organizations. But even besides that we’ve span 12 the spectrum for the charitable causes and otganizations by 13 giving to the American Cancer Society on St. the Red 14 Cross, Catholic Charities of the Virgin Islands, Charlotte 15 Kirrelman Cancer Institute, the CO:mount Foundation Of the 16 Virgin Islands. I mean the ast is there. It’s dupe long. 17 So what we’ve tried to do is pursue Mist Mr. 18 Epstein had originally said was going to be his goal. He 19 said when he originally came here that it makes both a 20 financial and economic sense and ethical sense to promote 21 education and training both within your company and within 22 the community at large and we’ve med very hard to do that. 23 I think, Miss S If you would speak a 24 little bit to Same Of the Opportunities that we have even 26 for the employees at the company.¶

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1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that. We’ve created some innovative opportunities that without Mr. Epstein’s relationships in say the scientific community and academic communities those wouldn’t ever have occurred. I could think of the two symposiumS held and sponsored because of Mr. Epsteln’s effort. One I think was an artificial intelligence symposium that was held at the university of the wrgin :stands involving I think 30 of the top computer scentists around the country and it was Open te WI fatuity and students. And then more recently in 2006 there was another’ symposium held and that was an incredible experience. The participants in that symposium were one of the world famous scientist and PhYSitist, Steven Hawkins, and five noble laureates. That was held at the — as you know Steven Hawkins Is wheelchair bound. So it was more convenient for him to hold that actually at the Ritz Carton Hotel. But it was in fact opened to students and faculty of the Virgin Islands. But even beyond that what we did Is there was a reception as part of that symposium where top science Students from the high school could come and meet Mr. Hawkins and the noble laureates. A hundred Virgin Islands Students had that opportunity. MR. INDYKE: Exactly. And even¶

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Well, what we’ve really tried 2 to do over the years is promote from within. So if we 3 have — you know, say one example is a woman that started as 4 a receptionist she actually was a high school teacher. She 5 was a math teacher. And when the woman that held that •- 6 someone in the accounting department moved to the States we 7 promoted her from within and then trained her to be an 8 accountant which she’s excellent. And now I’m actually 9 encouraging her to go back to the university and get her 10 accounting degree and maybe eventually become a CPA because 11 I always encourage anybody In the accounting field to be a 12 CPA. 13 MR. PENN: I guess what I wanted to 14 pet at Is that you gave a great outline of what you have 15 accomplished In your appendix here. And we’ve teen told 16 that we don’t toot our horn as the EDA adequately. We don’t 17 put out there what we have accomplished. 18 And if you had to rate the impacct of what you 19 have accomplished in terms of what we have developed in our 20 school system — because I think a lot of times, yes, you do 21 a great yob. You bring these people in but somebody on We 22 other side might not take it to the next level and that’s 23 what Fm getting at is that what do you think we need to be 24 doing as a representative of the government to take your 26 investment — because we invested in you but you also¶

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1 invested in the community. I don’t think it’s been 1 see that much needs to change for what we are doing. I will 2 maximized as far as getting the biggest bank for the buck. 2 Say this, that with the Current economic downturn thee has 3 You have invested big dollars in the symposium and the 3 been some kind of — there Is just unprecedented conditions 6 programs in the schools that what you have done Is what you 6 don’t fully understand how to contend with. And that’s 6 have done’ 6 created some interesting opportunities for people with the 7 I think a really good 7 expertise and the skills and talent like Mr. Epstein. And 8 business program in nigh school, in the public school 8 even now he’s already received requests from Investors and 9 system, you know, even a basic accounting. econornks Course 9 businesses looking for consulting advice. 10 where you would get those at the college level certainly. 10 So we think that will translate into 11 Out even if somebody wasn’t going to go on to college. if 11 opportunities in the future. And as long as we can continue 12 they had a realty good accounting course, I mean just 12 to do what we’ve been doing and continue to do it as well as 13 bookkeeping. I mean there are a lot of bookkeeping jobs 13 we’ve been doing It, I think the next year should look very 14 that you can get out there without getting an accounting 14 well for us. 15 degree 15 MR. PENN: Thank you. 16 So I really think that at the high school level 16 DR, M No questions. 17 if they had strong business programs In the public schools 17 THE CHAIR: I was totally amazed by 18 and in the private schools that wand be beneficial to the 18 you are averaging like $180,000.00 a year in charitable 19 students graduating, you know, similar to maybe how you 19 contributions. 20 would do Ike shop. If somebody wasn’t going to go 20 MR. 1NDYKE: Its something that we 21 into the business world you would focus on a trade. But 21 are very proud of. And frankly it’s something that, would 22 business is a late bit of a trade and accounting is a 22 not have happened but for the emphasis and the direction of 23 trade. And it’s something that without having to go on and 23 Mr. Jeffrey Epstein. 24 graduate from college we could really locus on that in the 24 THE CHAIR: hat out of curiosity,¶

4 charitable givings but has It translated in terms of 4 that as we have seen recently In Congress even the lawmakers¶

26 public system at the high school level. 25 though, why are you lowenng the -.- why did you go 11 Nat¶

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1 MR. PENN: What Pm getting at Is 1 and you are lowering it to 10 now, 2 like 1 said I see the promise of what you have brought to 2 MR. INDYKE: Well, we Should make 3 the table but I don’t know if the rest or us ran with It the 3 clear that we have not laid off anyone and we had no 4 way we needed to to make it become part of what we are 4 intention and have no Intention of laying off anyone. We 6 doing. And like the Chairman said you have done a great 5 recenty — one of the people from our organization resigned 6 job. I think the impact could have been that much greater 6 from our organization actual,/ to pursue an opportunity for 7 if there were Speak programs designed frOM these f011iS 7 herself at another organization and I think we probably had 8 that you brought In because 1 didn’t know Mr. Hawkins was 8 a little bit to do with the skils and experience that she 9 here. I was not aware. 9 gained in order to pursue that opportunity. Wouldn’t you 10 ‘MR. INDYKE: Welt, perhaps we can 10 agree, Jeanne? 11 work even better together In communication with each other 11 Yes. 12 and suggestions from the EOC as to areas that we could 12 MR. INDYKE: That being said economic 13 actually .- areas that we might contribute as we go forward. 13 times right now would have been uncertain. And while we 14 And we can also talk about as more EOC companies come in and 14 have high hopes, right now the current workload that we have 16 as you need to be hiring locally from those EEC companies 15 Is adequately handled by the staff. And the last thing that 16 you can help us understand what areas of training or what 18 we want Is for members of our staff • • as I said we have the 17 areas in the school system we might tend to support so that 17 utmost respect for and want them to feel fully occupied and 18 we could help the f OC companies grow from within even 18 fully employed — we Just don’t want them sitting idle. And 19 better. 19 we think that with the current woridoad that’s whetting 20 MR. PENN: And my Mal question, 20 that our current staff can handle. 21 in terms of your next ten years in this program, what is 21 Now, If things go wonderfully for us in the 22 needed? I mean we have the Jobs Act to contend with. Your 22 future as we hope they will, our needs, workload needs will 23 business model has it changed lately? What do you see 23 dictate that we hire more. It’s not something that needs to 24 further needs to happen? 24 be In the certillaite. It will be a fact. The needs of the 25 MR. INDYKE: Well, frankly I don’t 25 company will cectate that we hire more. And as you see horn¶

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1 our records we will hire locally, we will promote from 2 within because that’s how we do it.¶

3 DR. [REDACTED]: One questions. If an 4 extension is not granted, how would that affect your 5 business? Will it remain here active?¶

6 MR. INDYKE: Thank you, Doctor, for 7 that question. Let me say it this way. Mr. Epstein and 8 Financial Trust Company, Inc. has made the Virgin Islands 9 their home and they’ve become very attached to the Virgin 10 Islands. We’ve heard that all day and it’s true. It’s no 11 less true for Mr. Epstein. We all know how much resources 12 he has devoted to the community and to his own home here. 13 This is a place that’s very important to him.¶

14 On the other hand if benefits were denied to 15 Financial Trust Company, Inc. and those benefits were made 16 available — if similar benefits were made available 17 elsewhere, as a responsible business person I think you’ve 18 got no choice but to seriously consider relocating the 19 business. And I think that would be very unfortunate for 20 our employees and for the community. So that’s a choice we 21 hope we never have to face.¶

22 DR. [REDACTED]: Reasonable. 23 THE CHAIR: That’s a good answer. 24 Anymore questions from the staff? 25 (No Response)¶

1 THE CHAIR: Thank you very much. 2 HAVE a good evening. 3 MR. INDYKE: Thank you. 4 MR. EPSTEIN: I move to adjourn this 5 meeting of the EAC Commission. 6 DR. SMITH: Second. 7 THE CHAIR: This meeting stands 8 hardly adjourned.¶

9 (linearing Adjourned.)¶

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11 CERTIFICATE¶

12 This is hardly certified to by 13 a crow and annotate transcript 14 of the investigating proceedings.¶

15 Woodall Poller 16 Shorthead Reporter¶