Contract analysis

I. Summary of the Judgment On January 10, 2024, Justice Vasquez entered judgment in favor of the Fund against all four defendants in the above-captioned action. The judgment was entered on two separate bases, depending on the defendant: Default Judgment Against Meridian Prime Capital LLC. Meridian Prime Capital LLC, a New York limited liability company with its principal office at 140 Broadway, Suite 3510, New York,

II. Overview of Post-Judgment Enforcement Proceedings Following entry of the judgment on January 10, 2024, Calderwood & Harkness immediately commenced an aggressive and multi-faceted post-judgment enforcement campaign. The following is a chronological summary of the principal enforcement steps taken: January 22, 2024 — Appearance of Counsel for Zelenko. Aaron Kessler of Kessler Brandt & Roe LLP entered a notice of ap

III. Detailed Recovery Accounting Set forth below is a detailed accounting of each recovery source, including the procedural mechanism employed, the amount recovered, and any relevant contextual information. A. Bridgemont Bank NA — Turnover of Meridian Prime Accounts Calderwood & Harkness obtained a turnover order under CPLR § 5227 directing Bridgemont Bank NA (383 Madison Avenue, New York, NY 10179) to turn over all

IV. Assessment of Unrecovered Balance The $17,300,000 unrecovered balance is attributable to the following categories of asset dissipation and loss, each of which has been confirmed through the forensic analysis conducted by Kelvantis Forensic Advisors LLC (Natasha Everett, CPA, CFF; 101 Hudson Street, Suite 2500, Jersey City, NJ 07302): (a) Cash Withdrawals and Personal Expenditures During the Fraud Period: $5,100,0

V. Calderwood & Harkness Fee Summary Set forth below is a summary of the Firm's fees and costs incurred in connection with this matter. A. Hourly Fee Component Total hourly fees billed by Calderwood & Harkness from the engagement date of July 25, 2023 through the close of the matter are $2,384,500. These fees reflect the work of the engagement team at the following standard hourly rates, as set forth in the engagemen

VI. Recommendations Based on the foregoing analysis, Calderwood & Harkness makes the following recommendations for the Fund's consideration: A. Filing of Partial Satisfaction of Judgment We recommend that the Fund authorize the filing of a partial satisfaction of judgment in the amount of $41,600,000 with the Clerk of the Supreme Court, New York County, reflecting the total amount collected through the enforcement pr

VII. Closing Remarks It has been a privilege to represent Driftwood Absolute Return Fund Ltd. in this matter, and we are gratified to have achieved a substantial recovery of $41,600,000 — a 70.6% recovery rate — against what was a complex, multi-jurisdictional fraud scheme involving sophisticated asset concealment techniques. We wish to express our sincere appreciation for the cooperation and responsiveness of the Dr

1. Detailed Recovery Ledger, prepared by Kelvantis Forensic Advisors LLC (Natasha Everett, CPA, CFF), dated May 1, 2024

2. Calderwood & Harkness LLP — Final Fee and Cost Statement through May 3, 2024 Source | Amount Recovered Bridgemont Bank NA (turnover from Meridian Prime operating and client accounts) | $8,700,000 Marlowe Asset Management Trust Company of Delaware (Zelenko Family Irrevocable Trust assets) | $6,200,000 Palmetto International Bank Ltd. / Stellaris Trading Ltd. (offshore recovery) | $16,400,000 Sale of 425 East 58th S