USVI Public Records

Document text

RE! OME HORT peNent A THE VI = suns cy ER 4 “ Rrapeic comicog SRD OFFICE it oF pevel! nue: Ri nN ad v Mh AY Wary 12, 12 2co9 a to 1:03 p.m 2.53 pix 33:57 p.r Pains Court Harborviaw Thomas Virgin Islanés eco SEAS PRE BF vk ai sit an Merher Ay 54 mh, Pry vember ao AFF PRES pe SIVA et cts 8ST Y FLAS ay ESC gai Counses PAS FLEMMIS a atiocs ESTHER SOSEPH, Analyst aetsr of App Pl OUR EPSATI 25 Cc Ben 22563 ostty qin 5.0 PA RT TEPCAT 3 - uc > bad INDEX > i M DESCRIPTION PAGE No 1 Meetng Called to Order io 2 Reil Cali 3 No Review ond Approval cf Agenda No Cases for Public Hearing es ae - ‘aL. * ee ee ee © 10 iF a2 11 $4 12 ee 2 oe ilt 13 156 (oa 14 h. Financtal Trust Company, Inc 170 15 16 (Hearag Adjcurned.) - 17 oo dj 18 ( 20 24 22 23 24 25 TRANSCRIPT BY PORTER'S COURT REPORTING, INC, (349) 775-2428 | TRANSCAIPT BY PORTER'S COURT REPCRIING, INC. (340) 775-2428 id 1 of 47 sheets Page 1 to 4 of 186 03/02/2009 01:01:31 PM 171 1. Brennan, the company's comptroiler and of course you already 2 = know Erika Kellerhats also representing the company and 3 specializing in EDC matters, someone who has been an 4 assistance ta them in making the application te you to make 5 sure \t was tn good order. 6 We appear today to ask your approval to extend my 7 client’s existing EDC benefits with the exception of a 8 single modification galng forward. The request fs that the 9 minimum employment requirement be adjusted fram 11 to 10 10 persons, The representatives of the company will speak to 14° you just a little bit more about the reason for that 12 requess. 13 In order to expedite the process because it's 14 afternoon and I know you've been here a long time, I would 15 like to just defer now to Mr. Indyke and tet him tell you a 16 tittle bit about the company and what it does. And I hope 17 we'll have an opportunity to let you hear abcut some of the 18 quite unusual things that this company has cone over the 19 period of Its first certificate to contribute to cur 20 community. 21 So with that Mr. Indyke. 22 MR. INDYKE: Good afternoon, 23° averyone, As Miss Hodge sald my name is Darren Indyke. 24 am the President and the Director of Financia’ Trust 25 Company, Inc. TRANSCRIPT BY PORTER S COURT REPORTING. INC. (349) 775-2423 170 172 | 1 I'd like to take this opportunity to thank you for 2 ee 2 allowing us to appear befare you and in support of our > a es | eee 3 application. And I thought I would start just by telling 5 a a ee ee ee eee ee 4 you a little bit about myself and how I came to be here 5 § before you today after which I'll give a brief summary of 6 ee 6 the company and then Miss Brennan and I would be pieased to eee 7 answer any questions you may have. 8 ; 1 | 8 I graduated Colgate University in 1986 with a 5° aa $ bachelor’s degree in education and economics. After 10 fF 10 graduation [ began working for a smali boutique jaw firm of 11 | ft | 411. which the founder of Financial Trust Company, Mr. Epstein, 12 | | 12 was a client. 13 FY PC 13 Finding that the practice of law was enjoyable or 14 THE CHAIR: Financial Trust Company. 14 seemed to be enjoyable, I followed that up by golng to 15 14 Carnell Law School where I obtained my law degree in 1931. 16 (Thereupon, Maria Hodge, Esq., Darren indyke and 416 after graduating from Cornell f went back to that same 17 Jeanne Brennan were duly sworn and testified as fotlows:) 47 boutique firm of which Mr. Epstein was in fact a clent and 18 18 continued there and then went a brief stint to a large 19 MS. HODGE: Good afternoen, Members 19 national law firm. That was for about five and a half 20 of the Commission, Commission Staff. My name ts Marla 20 = years 21 Tankenson Hodge. I am the generat counsel for Financial 21 At the end of that period | was given an 22 = Trust Company, Inc. and have been their general counsel In 22 ~~ incredible opportunity and that was to go join and work 23 the Virgin Islands for many years. 23 closely with Mr. Epstein who had become kind of my mentor. 24 I am accompanied today by Darren Indyke, the 24 So] guess you cauld say I've been working for him as an 25 president of the company immediately to my right, by Jeanne 25 = attorney, advisor, a personal representative for over 20 TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775.2428 TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775-2428 43 of 47 sheets Page 169 to 172 of 186 03/02/2009 01:01:31 PM foo’ 473 175 1 years now, 1 was with him when he first came te the Islands 1 areseeing now. You guys have survived, 2 In 1998 and when he opened the company's doors more than ten 2 And In reviewing the application I was really 3 syears ago. 3 Impressed by It because I mean you guys did it ight, You 4 During this time I've been actively Involved with 4 really contributed ta the economy. You made good on your 5 the company and Its operations and I've worked closely with 5 promises to the EDC and the people of the Virgin Islands. 6 the members of Its staff. And in that regard I'd ike you 6 And It's actually a pleasure again to see the application 7 to know that both Mr. Epstein and myself have the utmost 7 come forward. 8 respect for the members of Financial Trust Company's staff. 8 One of the questions I had was -- correct me if 9 They are a tatented, dedicated group of people and we are 9 I'm wrong, Counselor -- this is subject to the same five ana 10 very, very fortunate to be working with them. 10 ten year rule In the extension? 11 In September 2007 Mr. Epstein asked me to stand 11 MS, PLASKETT: Presently, yes. 12 = in for him at that time and for any period that he may be 12 THE CHAIR: So what Is It -- are you 13 required to be absent from the territory. And since then 13. asking for the five years or the ten years? 14 = i've served as the company’s president and will continue to 14 MS. KELLERHALS: We are asking for ten at 15 do so unt Mr. Epstein's return, which Is to say that I am 15 a 100 percent of benefits In the application. And that was 46 here only temporary until Mr. Epstein returns and resumes as 16 by virtue of our bellef that the statute -~ you know, if you 47 chairman and the president of the company. I'm here ta 17 looked at the rules of statutory construction and due to the 18 watch over and safeguard what he belleves Is a very 18 fact that they first received their certificate in 1999, 49 important endeavor and some very wonderful people. 19 they would be subject to the previous legislation which 20 Let me tell you a little bit about Financial 20 = allowed for a 10-year extension at a 100 percent of 21° Trust Company, Inc. It's a financtai services company and 21 ~~ benefits. 22 ~~ we provide kind of a broad range of financial, economic and 22 I know that we have sort of been down that road 23 business consulting services. They would inciude Investment 23° and may not know whether or not the AG's office has ruled or 24 °~—s advice, asset management, advice and assistance with asset 24 = if there has been any -- 1 haven't seen anything that came 25 management and structuring and negotiating Nnance and 25 ~~ out of the EOC office as to the policy. But obviously we TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775-2428 TRANSCRIPT BY PORTER'S COURT REPORTING, INC, (340) 775-2428 174 178 1° business transactions. We market our services ta 1° seek the maximum benefits that are ailawable. 2 individuals, to trust foundations and a vartety of business 2 THE CHAIR: I think we did get 2 3 entities. 3° ruling from the AG's office. 4 1 will say that the company has enjoyed a 4 MS, PLASKETT: The Attorney General 5 successful ten years In the territory and we've provided, 1 § didn't rule on this one. It was on the residency Issue. 6 think, wonderful benefits and apportunities for our & MS. KELLERHALS: Residency. 7 employees and In the community at large. And Mr. Epsteln 7 MS. PLASKETT: There was an opinion Band FOC I think have had an Incredibly, positive economic 8 that came out from the board's counse! about this. 9 impact on the community and with our employee staff. And 9 MS. KELLERHALS: Okay. I wasn't sure if 10 I'm very proud of that record. And 1 think this Is 10 an AG's cpinion had been requested which I thought was what 11. something, ['m sure this is something that f would like to 11. was happening now. 12 continue weil Into the future. And that’s why we are here 12 THE CHAIR: No, the board counsel 13 befare you today. 13> submitted an opinion -- now I am remembering -- which was 14 So with that Introduction done I think it would 14 not In favor of your position. 15 be appropriate If you have any questions Miss Brennan and 15 MS. KELLERHALS: 1 also thought that I 16 myself will be pleased to answer. 16 understood that certain certificates had been reissued with 17 THE CHAIR: I think one of the 17 an extended period of benefits. 18 things of significance Is that lIke now we're seeing the 18 THE CHAIR: No, What we did was we 19 first graduating class of the designated service businesses 49 gave the benefit of the five years at 90 percent and we are 20 because you guys was on the first tip of that wave when It 20 = ftobbying the Legislature to have the law repealed. That's 21 started coming In and coming back for extensions now. And I 21°) what we did. That was the short way of getting the 22 «guess we'll be seeing a lot of these In the following years. 22 = applications through and getting everybody thelr tax 23 I remember when you go to school they tell yau 23 benefits without waiting for the Legislature to make a 24 == Jook at the person on elther side of you. They won't be 24 =~ decision, 25 = there when you graduate. So I guess for us that's what we 25 MS, KELLERHALS: So you did five years at TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775-2428 TRANSCRIPT BY PORTER'S COURT REPORTING. INC (340) 775-2428 03/02/2009 01:01:31 PM Page 173 to 176 of 186 44 of 47 sheets V7 179 4° a hundred? 1 beyond that we held presentations and a Q&A session at the 2 THE CHAIR: At 90. 2 + MCM Center where I think the five Nobelists and Edwin 3 MS. KELLERHALS: At 90, 3° Thomas, Jr. was also there to have their presentations and 4 THE CHAIR: And we are in the 4 answer questions. And that was, I think, attended by 309 to 5 process of making several changes ta the EDC laws as you § 400 high school sclence students fram across the Island. 6 know and we'll be back before the Legislature before the end 6 So we've tried to do some very interesting and 7 of this year. 7 innovative things. If you look at Appendix 1 in the 8 MS, KELLERHALS: Obviously we'll take the 8 application you'll see the record of the philanthropic and 9 maximum altowable. 3 charitable giving and you'll note that there has been a 10 THE CHAIR: Well, the maximum 10 = strong emphasis on education, on schoo! enrichment, on 11. allowable would be five years at 90 percent, depending on 11° sporting organizations, But even besides that we've span 12 how you stack It. Ten years at 50 may be more profitable 12 the spectrum for the charitable causes and organizations by 13 for you. 13. giving to the American Cancer Society on St. Thomas, the Red 14 Mr, Penn, 14 Cross, Catholic Charitles of the Virgin Islands, Charlotte 15 MR, PENN: I guess after the 15 Kimelman Cancer Institute, the Community Foundation of the 16 Chairman talked to you being the graduating class, my 16 Virgin islands. I mean the list fs there. It’s quite long. 17 concern Is always locking at the past ten years what needs 17 So what we've tried to do fs pursue what Mr. 18 to be done differently to make it even more successful for 48 Epstein had originally said was going to be his goal. He 18 both parties from your vantage paint? That's something I'd 19 sald when he originally came here that it makes both a 20 like to hear about, 20 financial and economic sense and ethical sense to promote 21 MR. INDYKE: Welt, certainly we would 27° education and training both within your company and within 22 ~~ ‘love to hear any suggestions that EOC has in that regard. I 22 = the community at large and we've tried very hard to do that. 23 ~~ think we've had a very successful track record both in our 23 I think, Miss Brennan, if you would speak a 24 ~~ philanthropic giving, In our training program. We have 24 -siittle bit to some of the opportunities that we have even 25 promoted people from within and Miss Brennan will speak to 25 for the employees at the company. TRANSCRIPT BY PORTER'S COURT REPORTING, ING. (340) 775-2428 TRANSCRIPT SY PORTER'S COURT REPORTING, INC. (340) 775-2428 178 180 1 that. 41 MS. BRENNAN: Well, what we've really tried 2 We've created some Innovative opportunitles that 2. todo over the years Is promote from within. So if we 3 without Mr, Epstein’s relationships In say the sclentific 3. have -- you know, say one example is a woman that started as 4 community and academic communities those wouldn't ever have 4 a receptionist she actually was a high school teacher. She 5 occurred. I could think of the two symposiums held and § was a math teacher. And when the woman that held that -- 6 sponsored because of Mr, Epstein's efforts. One I think was 6 someone in the accounting department moved to the States we 7 ~~ an artificial intelligence symposium that was held at the 7 promoted her from within and then trained her to be an 8 University of the Virgin Islands involving I think 30 of the 8 accountant which she's excellent. And now I'm actually 3 top computer scientists around the country and it was open 9 encouraging her to go back ta the university and get her 10 = to UVI faculty and students. 10 accounting degree and maybe eventually become a CPA because 11 And then more recently In 2006 there was another 11 I always encourage anybody in the accounting fleld to be a 12 symposium held and that was an Incredible experience, The 12 CPA. 13 participants in that symposium were one of the world famous 13 MR, PENN: I guess what I wanted to 14 scientist and physicist, Steven Hawkins, and five noble 14 get at is that you gave a great outline of what you have 15 laureates. That was held at the -- as you know Steven 18 accomplished In your appendix here. And we've been told 16 Hawkins is wheelchair bound. So It was more convenient for 16 that we don’t toot our horn as the EDA adequately. We don’t 17 him to hold that actually at the Ritz Carlton Hotel. But it 17 put out there what we have accomplished. 18 = was in fact opened to students and faculty of the Virgin 18 And If you had to rate the impact of what you 19 Islands. But even beyond that what we did is there was a 19 have accomplished in terms of what we have developed In our 2G reception as part of that symposium where top sctence 20 = school system -- because I think a lot of times, yes, you do 21 students from the high school could come and meet Mr. 21° agreat Job. You bring these peaple in but somebody on the 22 Hawkins and the noble laureates. 22 other side might not take It to the next level and that's 23 MS. BRENNAN: A hundred Virgin Islands 23 = what I'm getting at Is that what do you think we need to be 24 ~~ students had that opportunity. 24 = doing as a representative of the government to take your 25 MR. INDYKE: Exactly. And even 25s Investment -- because we Invested in you but you also TRANSCRIPT BY PORTER'S COURT REPORTING, ING. (340} 775-2428 TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775.2428 45 of 47 sheets Page 177 to 180 of 186 03/02/2009 03:01:31 PM aN 181 183 1 Invested In the community. I don't think it's been 1° see that much needs to change for what we are doing. 1 will 2 = ~=maximized as far as getting the biggest bank for the buck. 2 say this, that with the current economic dawntum there has 3° You have Invested big dollars in the symposium and the 3 been some kind of -- there Is just unprecedented conditions 4 charitable givings but has it translated In terms of 4 that as we have seen recently in Congress even the lawmakers 5 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 MS, BRENNAN: T think a really good 7 expertise and the skills and talent like Mr. Epstein. And 8 business program in high school, In the public school 8 even now he's already received requests from investors and 9 system, you know, even a baslc accounting, economics course 9 businesses looking for consulting advice. 10 = where you would get those at the college level certainiy. 10 So we think that will transiate into 11. But even if samebody wasn’t going to go an to college, If 11 apportunities in the future. And as long as we can continue 12 they had a really good accounting course, 1 mean just 12 to do what we've been doing and continue to do It as well as 13 bookkeeping. 1 mean there are a Int af bookkeeping jobs 13 we've been doing it, f think the next year should look very 14 that you can get out there withaut getting an accounting 14° well for us. 15 degree. 15 MR, PENN: Thank you. 16 So I really think that at the high schoo! level 16 DR. SMITH: No questions. 17 if they had strong business programs In the public schools 17 THE CHAIR: 1 was totally amazed by 18 and In the private schools that would be beneficial to the 18 you are averaging Sike $180,000.00 a year in charitable 19 students graduating, you know, similar to maybe how you 19° contributions. 20° = would do like wood shop. If somebody wasn't going to go 20 MR. INDYKE: It's samething that we 21% Into the business world you would focus on a trade. But 21 are very proud of. And frankly tt's something that would 22 ~~ business Is a little bit of a trade and accounting fs 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—=soMr. Jeffrey Epstein. 24 =~ graduate from college we could really focus on that in the 24 THE CHAIR: Just out of curlosity, 25 = public system at the high schoo! level. 25 = though, why are you lowering the -- why did you go 11 first TRANSCRIPT BY PORTER'S COURT REPORTING, INC, (340) 775-2428 TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775-2428 182 184 1 MR. PENN: What I'm getting at Is 4 and you are lowering it to 10 now? 2 like I sald I see the promise of what you have brought to 2 MR, INDYKE: Weil, we should make 3 the table but I don’t know If the rest of 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 became part of what we are 4 intention and have no Intention of laying off anyone. We § doing. And like the Chairman sald you have done a great 5 recently -- one of the people from our organization resigned G fob. I think the Impact could have been that much greater 6 = from our organizatton actually to pursue an opportunity for 7 If there were specific programs designed from these falks 7 herself at another organization and 1 think we probably had B sthat you brought In because I didn't know Mr. Hawkins was 8 a little bit to do with the skills and experience that she 9 here. 1 was not aware. 9 gained in order to pursue that opportunity. Wouldn't you 10 MR. INDYKE: Well, perhaps we can 10 agree, Jeanne? 11° work even better together in communication with each other 411 MS. BRENNAN: Yes. 12 and suggestions from the EDC 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 white we 14 And we can also talk about as more EDC companies come in and 14 have high hopes, right now the current workload that we have 15 as you need to be hiring locally from those EDC companies 16 Is adequately handled by the staff. And the last thing that 416 you can help us understand what areas of training or what 46 we want fs for members of our staff -- as I said we have the 17 areas in the school system we might tend to support so that 47 utmost respect for and want them to feel fully occupled and 48 = we could help the EDC companies graw from within even 48 fully employed -- we Just don't want them sitting idle. And 19 better. 19 we think that with the current workload that's something 20 MR. PENN: And my final 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? | 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 =~ bein the certificate. It will be a fact. The needs of the 25 MR. INDYKE: Weil, frankly I don't 25 company will dictate that we hire more, And as you see from TRANSCRIPT BY PORTER'S COURT REPORTING, INC. {340} 775-2428 TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775-2428 03/02/2009 01:01:31 PM Page 181 to 184 of 186 46 of 47 sheets wooaontownnhkoan = = = - Oo 12 13 14 15 16 17 18 419 20 21 22 23 24 25 185 aur records we will hire locally, we will promote fram within because that's how we do it. DR. SMITH: One questions. If an extension [s not granted, how would that affect your business? Wilt it remain here active? MR. ENDYKE: Thank you, Doctor, for that question. Let me say it this way. Mr. Epstein and Financial Trust Company, Inc. has made the Virgin Islands thelr home and they've become very attached to the Virgin Islands. We've heard that all day and it's true. It's no less true for Mr. Epstein. We all know how much resources he has devoted to the community and to his own home here. This is a place that's very Important to him, On the other hand if benefits were denied to Financial Trust Company, Inc. and those benefits were made available -- if similar benefits were made available elsewhere, as 2 responsible business person I think you've got no choice but to seriously consider relocating the business. And } think that would be very unfortunate for our employees and for the community. So that's a choice we hope we never have to face. DR. SMITH: Reasonable. THE CHAIR: That's a good answer. Anymore questions fram the staff? (No Response) TRANSCRIPT BY PORTER'S COURT REPORTING, INC. (340) 775-2428 mY 20 21 22 23 25 186 TRE CHAIR Thonk you very much. Have a good evening. NR, IMDYKE Thank you. WR, PEMN I mave £6 adjeurn this meeting of the EDC Commission. DR. SHETH: Second, TKE CHAIR This meeting stands hereby adjourned. (Hearing Adjourned.) CREAT LFICATE This is hereby certified to be a trve and accurate tranacript af the foregcing proceedings. Verdel)] Potter Shorthand Reporter TRAMSCRIPL BY POATER‘S COURT REPORTING, INC. (340) 778-2428 47 of 47 sheets Page 185 to 186 of 186 03/02/2009 01:01:31 PM