Contract analysis

I. SUMMARY OF PROCEEDINGS A. Logistics. The investigative testimony of Naveen Chakravarti was taken on January 30, 2024 at the offices of the SEC Division of Enforcement, Home Office, 100 F Street NE, Washington, D.C. 20549. Testimony commenced at approximately 10:00 a.m. and concluded at approximately 4:45 p.m. Eastern Time. During the course of the day, a one-hour lunch break was taken (approximately 12:15 p.m. to

II. KEY TOPICS COVERED DURING TESTIMONY The testimony covered seven principal subject areas, which are discussed in detail below. The topics are presented in approximate chronological order as they arose during the testimony session, though the Staff occasionally revisited earlier subjects during the later portions of the examination. A. Background and Role at BRB / BridgeFin The testimony opened with foundational qu

III. WITNESS DEMEANOR AND CREDIBILITY ASSESSMENT Chakravarti presented as a knowledgeable, composed, and credible witness throughout the testimony. He demonstrated a thorough command of BridgeFin's operations, products, and credit-management practices, which was consistent with his position as the Division Head. His responses were well-organized and substantive, reflecting both his familiarity with the subject matter

IV. COMPARISON WITH NAVARRETE TESTIMONY (JANUARY 18, 2024) A critical objective of the post-testimony review is to assess the consistency between Chakravarti's testimony and the prior testimony of CFO Patricia Navarrete, which was taken on January 18, 2024. We have conducted an initial comparison based on our contemporaneous notes from both sessions. A more detailed comparison will be conducted once the official tran

V. STAFF'S APPARENT THEORY AND AREAS OF CONTINUED FOCUS Based on the lines of questioning pursued during the Chakravarti testimony, as well as the prior Navarrete testimony, the Staff's apparent theory and areas of continued focus can be summarized as follows: Core Theory — Material ACL Understatement. The Staff's theory remains centered on the contention that the re-aging of the 12,847 modified BridgeFin loans (aggr

VI. IMPLICATIONS FOR DEFENSE STRATEGY A. Preparation for Raymond Hu Testimony (February 14, 2024) The upcoming testimony of Chief Accounting Officer Raymond Hu, currently scheduled for February 14, 2024, will be the most critical remaining testimony event in the investigation. Hu is the witness best positioned to address the Staff's core questions regarding the CECL model's treatment of re-aged loans, which is the ly

VII. NEXT STEPS The following action items should be completed in the near term:

1. Hu Testimony Preparation. Complete the preparation memorandum for the testimony of Raymond Hu, currently scheduled for February 14, 2024. Jasmine Thornton is the lead associate on Hu's preparation. An initial preparation session with Hu should be scheduled no later than February 7, 2024, with a follow-up session scheduled for February 12, 2024.

2. Document Productions. The fifth rolling production to the SEC Staff, consisting of 39,881 documents, is scheduled for February 15, 2024. The sixth and final rolling production, consisting of 38,912 documents, is scheduled for March 1, 2024. The review team should ensure that both productions are completed on schedule and that any documents responsive to the priority review topics identified in Section VI.C above a

3. Brindoval Analytic Partners Working Session. Schedule a working session with Dr. Franklin Osei and the Brindoval Analytic Partners team to integrate the insights from the Chakravarti testimony — particularly the 28% re-default rate — into the ongoing forensic accounting analysis. This session should occur no later than February 9, 2024.

4. Transcript Review. Request the official transcript of the Chakravarti testimony upon availability (estimated delivery on or about February 13–14, 2024). Upon receipt, conduct a detailed comparison against the Navarrete transcript to confirm consistency on all key factual points. Any discrepancies should be immediately flagged for partner review.

5. Audit Committee Status Memorandum. Prepare an interim status memorandum for the BRB Board Audit Committee. The target date for this memorandum is following the completion of the Hu testimony and the final document production, which would place the target in mid-to-late March 2024. The memorandum should summarize the status of the investigation, the key themes emerging from the testimony sessions, and the defense t

VIII. DOCUMENT RETENTION NOTE This memorandum constitutes attorney work product prepared in anticipation of litigation and is protected by the work-product doctrine. It reflects the mental impressions, conclusions, opinions, and legal theories of counsel. This memorandum also reflects attorney-client privileged communications between Calderwood & Harkness LLP and its client, Belmont Ridge Bank National Association. T