CV05-00030 - David C. Farmer vs. Harmon

David C. Farmer, Successor-Trustee vs. Harmon

(Formerly Woo vs. Harmon & Nicholson vs. Harmon)

U.S. District Court For the District of Hawaii

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DEFENDANT’S WITNESS

MARK TERCEK

Mark Tercek became the president and CEO of The Nature Conservancy in July 2008. Previously, he was a managing director at Goldman Sachs, where he headed the firm’s Center for Environmental Markets and its Environmental Strategy Group.

At Goldman Sachs, Tercek played a major role in designing and implementing the firm’s environmental strategy. He also headed Goldman Sachs’ leadership development efforts for the firm’s managing directors.

A Wide-Ranging Career at Goldman Sachs

Mr. Tercek joined Goldman Sachs in 1984 and was named a partner in 1996. Before taking on his current responsibilities at Goldman Sachs, he headed various global departments for the firm’s investment banking division.

These departments included consumer/healthcare (2003-2006), equity capital markets (1999-2003), corporate finance (1998-1999), real estate (1996-1998), and transportation (1993-1996).

In addition to his client and transaction responsibilities, Mr. Tercek also had leadership responsibility for each of these business units. Such responsibilities included recruiting, compensation, budgeting and strategic planning, and promotions. He also served on the firm’s commitments committee from 1996-2004.

Mr. Tercek has extensive international experience. From 1990-1993, he led the firm’s corporate finance business in Tokyo. During this period, he led several landmark transactions in the region including the privatizations of China Steel, China Southern Airways, and Singapore Telecom.

Subsequently, as head of equity capital markets, he spent one week per month working in the Goldman Sachs’ London office from 1999-2003. Mr. Tercek also lived in Tokyo from 1979-1982 when he worked for Bank of America; he focused on business in Japan, Taiwan and South Korea during that period.

Mr. Tercek is an adjunct professor at New York University’s Stern School of Business with appointments in both the school's finance and its management & organization departments.

He is presently teaching a new course in Stern's MBA program entitled “Leading Sustainable Enterprises.” He has also guest lectured at the London Business School, Columbia University, and Harvard Business School.

Active Engagment in Environmental Issues

Mr. Tercek is actively engaged with various environmental organizations. He is presently collaborating with Resources for the Future, the World Resources Institute and the Woods Hole Research Center on projects concerning climate change.

He is a member of the Council on Foreign Relations and serves on its independent task force on climate change. Mr. Tercek serves on the Wildlife Conservation Society’s Chilean Advisory Council.

He is also a member of the Steering Group on the Prince's Rainforest Project, which was launched last year by His Royal Highness the Prince of Wales. Mr. Tercek will soon participate as a faculty member in the New York Times Institute on the Environment — a seminar intended to inform editors and journalists on major environmental issues.

Mr. Tercek is also a frequent public speaker on topics connected to business and the environment. He has recently lectured at events sponsored by the Council on Foreign Relations, World Wildlife Fund, Columbia University, New York University, National Conference on Science, Policy and the Environment, Katoomba/Forest Trends, Ceres, Business for Social Responsibility, Fortune Magazine and the Mayor’s Summit on Climate Protection at Sundance.

Education, Literacy and More

Mr. Tercek is president of the board of trustees of Western Reserve Academy, a boarding preparatory school in Hudson, Ohio. In this role, he has overseen the completion of a record $50 million capital campaign, instituted new strategic planning and governance programs, and appointed a new head of school.

He is also a founding board member of Seachange Capital — a start-up investment bank-like intermediary serving the not-for-profit sector. Mr. Tercek is the immediate past chairman of the board of trustees for Literacy Partners in New York City. He is also a trustee of Business for Social Responsibility. He is a past member of the Board of Directors for the Rouse Company and the Rockefeller Center REIT....

http://www.nature.org/pressroom/leadership/art24763.html

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May 2008

Environmental Investment Can Pay Dividends says Mark Tercek

STANFORD GRADUATE SCHOOL OF BUSINESS —There are “huge opportunities for companies and other private sector players in the environmental area,” said Mark Tercek, an investment banker who spent the past 24 years at global giant Goldman Sachs. “We’re off to the races there.”

Videos

Tercek outlined Goldman Sachs’ efforts to encourage its business partners to adopt sustainable practices. His talk on April 24 was part of a lecture series organized by the student Environmentally Sustainable Business Club, at the Graduate School of Business.

As the head of Goldman Sachs’ Center for Environmental Markets, created in 2005, Tercek has overseen the company’s effort to match environmentally friendly policies with profitable business practices. The center also works with think tanks and academic institutions to develop ways to link environmental conservation with business.

It started in September 2004, when Goldman Sachs and the Wildlife Conservation Society announced a partnership to protect a tract of wilderness at the southernmost edge of South America, on the island of Tierra del Fuego, Chile. This first-of-its-kind private/public alliance has created a 735,500-acre nature preserve, donated by Goldman Sachs to the Wildlife Conservation Society to be protected as a major ecological resource. Goldman Sachs and the society are working with Chilean conservationists and other partners to establish the reserve, develop a sustainable use plan, and preserve the region’s unique ecological characteristics.

Goldman Sachs vowed to invest $1 billion in renewable energy and energy efficiency projects. By the end of 2007, it had invested more than $2 billion in alternative energy projects in the United States, Europe, and Asia, according to Goldman Sachs’ corporate website, including the Maryland-based solar photovoltaic power firm SunEdison and Texas-based Horizon Wind Energy.

Another corporate goal, Tercek said, is to reduce greenhouse gas emissions from the company’s leased and owned offices companywide by 7 percent by 2012, using 2005 as the baseline.

That effort is proving tricky to achieve because in both 2006 and 2007, the company’s emissions rose as overall business grew. “Not only have our emissions not gone down, they have soared,” said Tercek. “Business is booming, so that’s good. But we have a little bit of a problem. We have to figure out how to have great data centers that never fail, but have more energy efficiency.”

Another visible example of Goldman Sach’s commitment to go green is the company’s new headquarters, a 43-story steel-and-glass office tower under construction in New York across from the World Trade Center site to house the company’s investment banking, investment management, and trading operations.

Tercek said Goldman Sachs also is active in the markets for carbon emissions. In September 2006, it made a minority equity investment in Climate Exchange PLC, which owns several European and U.S. trading platforms that facilitate trading in environmental financial instruments: the European Climate Exchange (ECX), the Chicago Climate Exchange (CCX) and the newly created California Climate Exchange (CaCX), the company’s Web site says.

Big firms are betting that a carbon trading market could develop in the United States. “So, everyone’s paying attention to this space,” Tercek said, adding, “It’s a tricky game to play because there is a lot of uncertainty.”

A few weeks after his talk at the Business School, Tercek announced he would combine his global business experience and passion for environmental issues when he takes the helm this summer as chief executive of the Nature Conservancy, the nation’s largest environmental-conservation charity.

Tercek, 51, starts at the Arlington, Va.–based Nature Conservancy in July 2008, according to a release issued by the nonprofit on May 9. He joined Goldman Sachs in 1984 and became a partner at the company in 1996.

—Michele Chandler

www.gsb.stanford.edu/news/headlines/goldman_story.html

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NEW DISCOVERY (04-04-08):

WILLIAM J. CLINTON FOUNDATION

Speech: Remarks at the Goldman Sachs & Company 2004 Global Conference

December 3, 2004

New York, NY

Thank you very much. Thank you. Thank you very much. Thank you. Thank you, Hank, for that wonderful introduction. I probably should quit while I’m ahead. [LAUGHTER] And thank you, ladies and gentlemen, for the warm welcome.

I admire Hank Paulson very much for many things. His interest in Asia and our long-term relationship with the Asian Pacific community and particularly his leadership of the Nature Conservancy, some of you may not be familiar with it, but it is the principal private organization facilitating the preservation of precious natural land in the United States, and increasingly, in other places on the globe. I don’t think I ever told Hank this. But when I was the Governor of Arkansas, we used the Nature Conservancy more than any other State in the country.

I also want thank the people at Goldman Sachs, many of whom have contributed to the work of my Foundation, and the work we do around the world to try to fight AIDS and extend economic opportunity, to promote education and citizen service and to try to bridge the racial and religious divides that still bedevil the world. And I want thank Goldman Sachs for hiring at least a dozen people, who worked in the White House and other places in the administration. I was worried about what all those young people were going to do when we left office. [LAUGHS] So I am deeply in your debt....

www.kycbs.net/Clinton-Speech-2004-Global-Conference.mht

See also:

www.kycbs.net/Confessions.htm

www.kycbs.net/GoldmanSachs.htm

www.kycbs.net/MaunawiliValley.htm

www.kycbs.net/NatureConservancy.htm

www.kycbs.net/Nature-Conservancy-Hawaii.htm

www.kycbs.net/Global-Fund.htm

www.kycbs.net/Peregrine-Fund.htm

www.kycbs.net/Peregrine-Gallery.htm

www.kycbs.net/CV05-00030-Witness-Clinton-Bill.htm

www.kycbs.net/CV05-00030-Witness-Clinton-Hillary.htm

www.kycbs.net/CV05-00030-Witness-Rubin-Robert.htm

www.kycbs.net/CV05-00030-Witness-Peters-Henry.htm

www.kycbs.net/CV05-00030-Witness-Waihee-John.htm

www.kycbs.net/CV05-00030-Witness-Mailer-Dee-Jay.htm

www.kycbs.net/CV05-00030-Witness-Kurren-Faye.htm

www.kycbs.net/CV05-00030-Witness-Alston-Paul.htm

www.kycbs.net/CV05-00030-Witness-Fuqua-Judith.htm

www.kycbs.net/CV05-00030-Witness-Apoliona-Haunani.htm

www.kycbs.net/CV05-00030-Witness-Dunn-Greg.htm

www.kycbs.net/CV05-00030-Witness-Arrigo-Sue.htm

www.kycbs.net/CV05-00030-Witness-Lingle-Linda.htm

www.kycbs.net/CV05-00030-Witness-Crowe-William.htm

www.kycbs.net/CV05-00030-Witness-Kissinger-Henry.htm

www.kycbs.net/CV05-00030-Witness-Farmer-David.htm

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NEW DISCOVERY (04-11-08): Trustee James B. Nicholson failed to disclose that he was the court-appointed bankruptcy trustee for Defendant’s witness, Peter Savio, even though he was asked specifically if he had any business, professional, personal or political relationships with Mr. Savio:

August, 2003

Hawaii’s Top 250 Companies:

New To The List: Whoa, Savio!

Hawaiian Island Homes' debut is marked by acrimony

By Kelli Abe Trifonovitch, Hawaii Business Magazine

Any interview that focuses on Peter Savio's new company, Hawaiian Island Homes Ltd., will soon focus on another Top 250 company, Central Pacific Bank. Says Savio: "They're malicious. They're vicious. I am going to become a stockholder in Central Pacific Bank. I am going to reform that institution. Their mistake was they stomped me. They didn't kill me. I'm coming back. I'm going to have fun with them."

Go back to the year 2001. Savio Inc., a holding company for eight real estate sales and development companies, was No. 56 on the Top 250, with $134.6 million in 2000 gross sales. But in 2001, Savio Inc. filed for Chapter 7 liquidation, and Peter Savio and his wife filed for personal bankruptcy protection. Savio says he was forced into the bankruptcies because CPB gave him just five days to move from his second-floor offices at 931 University Ave. Savio says he had been in a workout plan with a number of lenders after he started experiencing cash-flow problems in the mid-1990s. But CPB forced his hand.

"The only way to stop them was, I had to file for personal bankruptcy. So to save my employees and everything else, I filed for personal bankruptcy - one of the most difficult decisions I've ever had to make. But I was really pissed at Central Pacific Bank for doing that," he says.

"It was tough," he adds. "Basically I lost everything. Lost my house. Lost everything. Had to basically come back from nothing."

Today, Savio is more than back. His real estate company, Hawaiian Island Homes Ltd., lists 2002 gross sales of $177 million. Its office is downstairs in the same building that Savio Inc.'s once was. And the company is No. 27, ahead of CPB Inc. (No. 49), something Savio will rejoice to read. Savio says, "I've decided that my goal is to beat them in the Top 250. … just so we can say, 'Nannynannybooboo!'"

That's not all. "My short-term and my long-term goal is to reform Central Pacific Bank," Savio says. "I think I'm going to buy the bank."

Ann Takiguchi, Central Pacific Financial's communications officer, says, "We made every effort to work with Mr. Savio, and it is unfortunate that he is blaming us for his situation. Out of respect for our customers' privacy, we have no further comment. As a matter of bank policy, we don't comment on the affairs of our customers."

Bankruptcy court filings show that Central Pacific Bank claimed that Savio Inc. owed it about $1.5 million when Savio filed for bankruptcy in 2001. The Internal Revenue Service and Pitney Bowes Credit Corp. also listed claims of about $2,000 each.

The court-appointed trustee for Savio Inc.'s bankruptcy case, attorney Jim Nicholson, says the only unencumbered asset of the estate, a unit in the Diamond Head Beach apartment building, was sold for $375,000 in June 2003.

Gross sales for Savio's other new company, Hawaiian Island Development, were not reported for this year's Top 250, so one thing is for sure: Next year, he'll be back. Says Savio: "We're going to set up a new holding company called, 'I Hate CPB.' No, my attorney said I couldn't do that. I have a warped sense of humor, OK? But anyway, the new holding company is going to be Ohia Holdings."

Knowing Savio, there is marked symbolism in that choice. After all, the Ohia tree can be found growing in the middle of old lava flows.

Hawaii Business, August, 2003

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February 17, 2006

Aloha Air prepares to depart bankruptcy

By Dave Segal, Star-Bulletin

ALOHA AIRLINES had a gun to its head from the start.

When it filed for bankruptcy just more than 13 months ago, it could not afford employee payroll. Its unions were balking at what would become the first of two rounds of concessions. And liquidation was an all-too-real possibility for an airline that had mounting debt and just $2 million left in cash.

Then things got worse: soaring fuel costs, a demand from lenders to shut down mainland flights, a 15.5 percent loan interest rate and last-minute appeals to its reorganization plan.

But the state's second-oldest airline somehow survived. And in a turbocharged pace for an airline bankruptcy, Aloha plans to emerge from reorganization around noon today with new owners, a $63 million cash infusion that it will use to pay off existing liabilities, a $15 million term loan and a $20 million revolving line of credit it can tap if necessary.

"(Liquidation was mentioned) so many times that people said we were crying wolf, but I wasn't," David Banmiller, president and chief executive of Aloha Airlines, said this week. "We had to find a way to pull it off because failure was not an option."

Banmiller would not detail Aloha's plans, but he did say the airline will begin another daily flight to Orange County, Calif., in April and plans to add more routes next year. The airline is sticking with its long-haul 737-700s for now but is "re-evaluating the fleet mix," he said.

The near death of Aloha's mainland routes came in June. The company's lenders, Goldman Sachs and Ableco Finance LLC, asked Aloha to shut down its mainland operations and return all its long-haul 737-700s because Aloha was in default of its loan agreement....

http://starbulletin.com/2006/02/17/news/story02.html

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Mark Tercek is expected to testify regarding his business, professional, political and personal relationships with Henry Paulson, Allianz Insurance; Henry Kissinger; James B. Nicholson; Stanley Hong; Faye Kurren; Barack Obama; Judge Barry Kurren; Diane Plotts; Mark Hemmeter; Goldman Sachs; Stephen Friedman; Marsh & McLennan; Mercer Human Resource Consulting*; Kamehameha Schools/Bishop Estate; Matsuo Takabuki; Henry Peters; Oswald Stender; Rodney Park; Wally Chin; Sumitomo Group; Central Pacific Bank; Jeffrey Skilling; Tom DeLay; Jack Abramoff; Jeff Stone; Peter Savio; Paul Alston; Sports Shinko; Peter Young; Adele Smith Simmons; The MacArthur Foundation; Carlyle Group; Dick Cheney; Richard Pearle; Carla Hills; Norm Brownstein; Gale Norton; The Nature Conservancy; The Peregrine Fund; International Rivers Network; Jeffrey Watanabe; Bill Frist; Colbert Matsumoto; Robert Rubin; William S. Simon; Investors Equity Life Insurance; Hank Greenberg*; Jeff Greenberg*; American International Group (AIG)*; Allied World Assurance Co.; eToys; Ben Benson*; Richard Hendricksen; Mark McConaghy, PricewaterhouseCoopers; Robert Kihune; Hamilton McCubbin; Dee Jay Mailer; Alexander & Baldwin; Steve Case; Ed Case; Suzanne Case; Jeffrey Case; David Cole; Guido Giacometti; Sukamto Sia; Oprah Winfrey; Edwina Clarke; Colbert Matsumoto; The Harry and Jeanette Weinberg Foundation; State of Hawaii, Board of Land and Natural Resources; Larry Mehau; Maui County Council; Dan Inouye; Daniel Akaka; John Waihee; Ben Cayetano; Linda Lingle; Robert Katz; Bill Fritz; Richard Rainwater; Columbia-HCA; Mid-Ocean Reinsurance; Chubb Group; XL Insurance; China Export-Import Bank; Xiamen International Bank, Barry Gold, Laser S. Haas, Yahoo, Inc. Henry Kravis, Kohlberg Kravis Roberts & Co., James B. “Jim” Nicholson, James Nicholson, David Farmer, Carol Muranaka, Elaine Chao, John Snow, Stephen Ross; Nancy Graham, WCI Communities, Conrad Black, and others to be named upon discovery.