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FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
EXHIBIT 4
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
By Email May 13, 2022
Mr. Owen B. Carragher, Jr.
Clyde & Co.
The Chrysler Building
405 Lexington Avenue, 16th Floor
New York, NY 10174
Owen.Carragher@clydeco.us
Re: Insured: Barry Yampol
Policy No.: B0507N16SF04900
Your Reference: 10120160
Matter: Missing Gems/Rough/Minerals/Crystals
Dear Mr. Carragher:
We write to follow up on our letter of July 23, 2021,1 in part to request that the
Underwriters complete the adjustment of, and make payment on, Mr. Barry Yampol’s insurance
claim, and also to provide documentation requested in your letter of June 29, 2021.
I. Mr. Yampol Has Complied with his Obligations Under the Policy
As a preliminary matter, Mr. Yampol has complied with his obligations under the policy
and is entitled to coverage. Under the policy, Mr. Yampol must present “satisfactory proof of
value and ownership.” Policy No. B0507N16SF04900 (the “Policy”), at p. 7. The Proof of Loss
submitted to the Underwriters on April 29, 2021, demonstrates that Mr. Yampol is entitled to
coverage for the loss of 26 kg of Imperial Topaz he discovered missing on April 2, 2017. The
purpose of a proof of loss in respect of an insurance policy is to provide the insurer with
“information by which ‘the insurer may be able intelligently to form some estimate of his rights
and liabilities before he is obliged to pay.’” Binder v. Commercial Travelers Mut. Accident Ass’n
of Am., 165 F.2d 896, 899 (2d Cir. 1947) (quoting O’Reilly v. Guardian Mut. Life Ins. Co. of
N.Y., 60 N.Y. 169, 173). Mr. Yampol has provided more than sufficient evidence to allow
Underwriters to form an estimate of what they must pay.
1 To date, we have not received a response to our July 23, 2021 letter, in which we request
an explanation for Underwriters’ failure to promptly and properly investigate this claim. Please
note that Underwriters were obligated to make an appropriate reply within 15 business days to
communications by the insured. See N.Y. Comp. Codes R. & Regs. tit. 11, § 216.4(b).
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 2
With respect to the valuation of lost items, Mr. Yampol has established that the fair
market value estimate of the Imperial Topaz is over $220 million, far in excess of the Policy
limit, through the detailed 82-page expert report of Mr. C.R. Beesley. See Yampol_Imperial
Topaz_00000001-Yampol_Imperial Topaz_00000082.
As regards ownership, there can be no dispute that Mr. Yampol is the rightful owner of
the Imperial Topaz that is the subject of this insurance claim. As set forth in detail in the Proof
of Loss, Mr. Yampol has owned the Vermillion Mine in Ouro Preto, Brazil, in the State of Minas
Gerais—which produces Imperial Topaz—for more than 30 years. Memorandum at 4. The
Vermillion Mine produces high quality Imperial Topaz crystals with top grade color. The
Underwriters were well aware of Mr. Yampol’s interests in mining gems when the Underwriters
agreed to provide insurance to Mr. Yampol for the loss of “cut gems” and “gems rough,” whether
located at Mr. Yampol’s New York residence, in vault systems in Ouro Preto and Minas Gerais,
or at other covered locations. Policy, p. 1 of 18. The Proof of Loss also includes an article
explaining that lapidary expert Elvis Gray examined the Imperial Topaz reserve when Mr.
Yampol acquired the mine, and Mr. Beesley’s confirmation that Mr. Yampol regularly selected
prime examples of Imperial Topaz material from the Mine for his personal collection. See
Staebler Article at Yampol_Imperial Topaz_00000144; Beesley Expert Rep. at
Yampol_Imperial Topaz_00000025. Additionally, as the Underwriters are aware, Mr. Yampol
displayed his collection publicly at the Tucson Gem and Mineral Show in 1995 and 2010. Id. at
Yampol_Imperial Topaz_00000034-35.
II. Additional Information Related to Mr. Yampol’s Claim
In your letter of June 29, 2021, you asked several questions regarding the Imperial Topaz
and regarding other lost items. We include below additional information in response to your
requests.2
The 26 kg of Imperial Topaz was located in the main residence at 11 Tennis Court Road,
Cove Neck, New York. The residence is alarmed and equipped with security cameras. In total,
there were approximately twelve cases, each of which has approximately ten to twelve drawers.
The 26 kg of Imperial Topaz at issue in this claim was stored in one of these cases, which were
locked. The keys to those cases are stored in a locked metal key box on a separate floor from the
cases, which are located on the basement level of the residence. They were stored there at the
2 Many of the questions are answered by the 250 pages of documentation already provided
to you in support of the Proof of Loss. For example, a number of the missing items were
photographed at the Tucson Gem & Mineral Show in 2010, and the photograph is included as
part of the production at Yampol_Imperial Topaz_00000245, in addition to a detailed article
describing the reaction to Mr. Yampol’s collection at that public display at Yampol_Imperial
Topaz_00000132-148. We have also provided you with alarm logs and extensive evidence of
the valuation of the missing items in a thorough expert report prepared by Mr. Beesley, a
preeminent appraisal and assessment expert. Mr. Beesley’s credentials are detailed in that
production as well.
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 3
time of the disappearance in 2017. The only person with authorized access to keys to the cases
was Mr. Yampol.
Mr. Yampol last saw the missing Imperial Topaz collection around January 20, 2017, in a
case that he locked before he departed for Florida on January 25, 2017. Mr. Yampol returned to
the residence on March 24, 2017, and, on April 2, 2017, Mr. Yampol discovered that the items
were missing. The cases were intact, with no evidence of forced entry, nor was there evidence of
a break-in at the property. Employees of Mr. Yampol who work at Mr. Yampol’s properties,
including James Hook and Bobby Gorney, were responsible for contacting the police if they
observed evidence of a break-in, and no such calls were made.
Unfortunately, Mr. Yampol has not recovered any of the missing items since initiating
this claim, despite significant efforts to do so, through outreach to the Federal Bureau of
Investigation (“FBI”) and the Nassau County Police Department, and through the retention of a
private investigation firm, K2 Intelligence (“K2”). As explained in our September 10, 2018
letter, Mr. Yampol did locate one item, a spessartine mineral specimen—a species of garnet, not
Imperial Topaz—that was missing from his collection when a mineral dealer offered to sell Mr.
Yampol one of Mr. Yampol’s own pieces. Mr. Yampol contacted Nassau County police and,
through K2, the FBI on September 7, 2018, regarding the one item he identified, and we
informed Underwriters of the sighting three days later, on September 10, 2018. The
Underwriters were also notified on November 6, 2019, that Mr. Yampol had been contacted by a
gem cutter who had been offered a 100 ct red Imperial Topaz, which both the gem cutter and
Mr. Yampol believed could only have come from Mr. Yampol’s collection of Imperial Topaz.
After Mr. Yampol’s loss of the Imperial Topaz collection, other dealers in mineral specimens
have also mentioned to Mr. Yampol seeing an unusually large quantity of Imperial Topaz of very
high quality and color being offered for sale at mineral specimen exhibitions in Tucson, Arizona
and Hong Kong, China. In addition, Mr. Yampol’s invitation to the Underwriters to visit his
property and to assist in the recovery of the missing items–to which Underwriters have never
responded–remains open.
To the best of our knowledge, the following are responses to enumerated questions
included in your June 29, 2021 letter. Mr. Yampol reserves the right to supplement this
information.
1. A list of the missing pieces.
List and describe the characteristics of the Imperial Topaz
The 26 kg of Imperial Topaz described in the Proof of Loss, which Mr. Yampol
discovered missing on April 2, 2017, is described at length in the expert report prepared by Mr.
Cap Beesley, which we submitted to Underwriters in April 2021.
The estimated value of the Imperial Topaz described in the Proof of Loss is more than
five times the Policy’s limit, see Beesley Expert Rep. at Yampol_Imperial Topaz_00000074.
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 4
Identify the dimensions, weight, quality, color, value of each missing piece
The Imperial Topaz is described at length in the expert report prepared by Mr. Cap
Beesley, which we submitted to Underwriters in April 2021. See, e.g., Beesley Report, p. 38. See
also the previous response.
How many pieces are missing
Due to the size of the collection, Mr. Yampol’s Imperial Topaz is measured by weight. See
Beesley Report, page 12 for photographs of a subset of the collection. See also the previous
response.
2. Information on when Mr. Yampol acquired the items in question.
In 1985, Mr. Yampol paid approximately $2 million to acquire 17 kg of Imperial Topaz in
connection with his acquisition of the Vermillion Mine, 6 kg of which became a part of Mr.
Yampol’s collection. The remainder, 20 kg of Imperial Topaz, was extracted from the Vermillion
Mine after Mr. Yampol purchased the mine.3
3. Information on where/from whom Mr. Yampol acquired the items in question.
See previous response.
4. The purchase price for each item.
See previous response.
5. Copies of the purchase invoices.
See previous response.
Purchase, acquisition, mine, mining, importation, shipping, or duty
records or any other documents of any kind that demonstrate his
ownership of . . . the Imperial Topaz
See previous response. Between 1995 and 2005 alone, at least 830 kg of Imperial Topaz
were imported from Mr. Yampol’s mine in Brazil to his business and personal addresses in New
York and Florida.
6. Were all of the now missing items in locked cases?
The missing Imperial Topaz was stored in a locked case at the time of the loss.
3 The weights in this paragraph are accurate to plus or minus 0.5 g.
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 5
7. Are all of the cases in question located in one structure on the property or
multiple structures?
All of the cases in question were located in one structure on the property, specifically the
main residence at 11 Tennis Court Road We note that Mr. Yampol has repeatedly offered to
have Underwriters or their agents visit the property and interview Mr. Yampol, but
Underwriters have declined each time.
8. Are all the structures the cases are located in alarmed?
Yes, the main residence in which the cases are located is alarmed.
9. Is it correct that there were no signs of damage/forced entry into the cases in
question?
When Mr. Yampol returned to his home and discovered in April 2017 that the Imperial
Topaz was missing, he did not see signs of damage or forced entry into the cases in question.
10. Who had keys to the cases in question?
To our knowledge, Mr. Yampol is the only person who had keys to the cases in question.
11. Where were the keys stored?
The keys to those cases are stored in a locked metal key box on a separate floor from the
cases themselves. Mr. Yampol left the keys locked in the key box when he departed his home for
Florida in January 2017, and he found the keys there when he returned.
12. When was the last time you are certain the items were no longer in their
cases?
Mr. Yampol last saw his collection of Imperial Topaz in its case on January 20, 2017,
before departing on a trip, and reported the items missing on or around April 2, 2017, upon his
return. Additional details are available on page 9 of the Memorandum in Support of Proof of
Loss and accompanying police reports.
13. A list of all persons who would have had access to the areas of the
home/property that contained the cases from which items are missing.
Mr. Yampol’s current understanding is that the individuals listed below had access to the
residence between January 20, 2017, and April 2, 2017. It was standard practice at the home
that each outside vendor on the property be accompanied by an employee or family member at
all times while inside the house.
Employees: James Hook, Bobby Gorney, Jose Garcia
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 6
02/20/2017 and 3/22/2017 - Armas Stepe
14. With respect to the items in the case(s) that are still accounted for, are they all
where they are supposed to be or does it appear to you as though they have
been moved around?
Mr. Yampol noticed that certain items that were left behind in the cabinets had been
visibly disturbed and moved from their original positions.
Whether the cabinets and cases in question were locked and/or alarmed
The cabinets in question were locked and located in a secure area of Mr. Yampol’s home
when he departed his residence in New York in January 2017.
Whether any evidence exists that the cabinets and cases were accessed in
an unauthorized manner
Mr. Yampol never authorized anyone to remove the Imperial Topaz collection, or to
access any of the cabinets in question.
Who was authorized to access the cabinets and cases and by what means
Mr. Yampol was the only person with authority to access the cases; Mr. Yampol did not
authorize anyone else to access the cases.
In what state the remaining items were left behind (and/or what those
items were)
Mr. Yampol noticed that certain items that were left behind in the cabinets had been
visibly disturbed and moved from their original positions.
Where and how Mr. Yampol stored his collection, and whether he
continued to store materials in locations from which items allegedly were
stolen and/or went missing
Prior to this loss, Mr. Yampol stored his 26 kg Imperial Topaz collection in a locked case,
as discussed above. Subsequent to the loss, Mr. Yampol upgraded the camera systems for the
property and added more internal and external sensors at 11 Tennis Court Road. Additional
security cameras were installed inside and outside of Mr. Yampol’s home, as well as motion
sensors and infrared sensors. Mr. Yampol moved some of the minerals to his other addresses
for temporary storage.
Mr. Yampol also moved some of his specimens to storage at Yale University, Harvard
University, and Crozier Fine Arts, which is owned by Iron Mountain. Mr. Yampol has acquired
two additional high quality vaults for storage at his residence.
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 7
More details regarding where and how the missing items were secured, the
number of cabinets and cases at issue, and/or where such cabinets and
cases were situated.
There were approximately twelve total cases, each of which had approximately ten to
twelve drawers. Mr. Yampol’s Imperial Topaz collection was stored in one of these cases. The
cases were locked and located in a secure area of the main house, which was itself secured and
alarmed.
15. Is there a security staff on premises, and, if so, are they aware of any
incidents that might explain what has become of the items in question?
As previously noted, employees of Mr. Yampol who work at Mr. Yampol’s properties,
including James Hook and Bobby Gorney, were responsible for contacting the police if they
observed evidence of a break-in. Separate security staff were not employed on premises.
16. Have you or the police reviewed your CCTV footage to see whether there is
any information or evidence that can be gleaned from this?
Despite Mr. Yampol’s efforts to work with Nassau County police to review security
footage from the property, no information could be gleaned from the footage. The outdoor Nest
cameras at the time only retained recordings for two weeks, so they provided limited evidence
by the time of Mr. Yampol’s return to the property.
17. Have you checked your residences, banks, institutions to which you lend, etc.,
for the missing pieces?
After moving his Imperial Topaz from the Bank of New York—which occurred before the
loss in question—Mr. Yampol stored his Imperial Topaz collection at his home at 11 Tennis
Court Road, and at no other location. The Imperial Topaz was locked in a case at his home when
Mr. Yampol departed in January 2017, no one other than Mr. Yampol had a key to the case, and
no one other than Mr. Yampol was authorized to access the collection. Mr. Yampol has
confirmed that the Imperial Topaz is not present at his home.
18. Are there any missing items or pieces that have ever been part of an exhibit or
display that was open to the general public, including any exhibit and/or
display on Mr. Yampol’s property?
Please review the Beesley Report, which describes at length the displays at the Tucson
Gem and Mineral Exhibitions in 1995 and 2010. The Imperial Topaz on display at the 1995 and
2010 exhibitions represented a part of Mr. Yampol’s collection.
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
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Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 8
19. Copies of false alarm reports, and confirmation of any genuine alarm events
in the timeframe in question.
Alarm records in Mr. Yampol’s possession for the January 1, 2017, to April 4, 2017,
period have been provided to Underwriters.
20. Confirmation of any instances of genuine alarm events in the timeframe in
question.
The alarm records provided to Underwriters reflect instances of the sensors activating,
but to Mr. Yampol’s knowledge in each instance the alarm was checked and no intruder was
discovered. In the event that the sensors were activated, the general practice—including during
the January-March 2017 period—was for James Hook to be notified of the sensor activation, at
which point Mr. Hook accessed the security system to review the cameras or other sensors in the
affected room or area and any adjoining areas as appropriate to ascertain whether there was any
activity in the area. Mr. Hook then drove to the residence and walked around the house with a
security dog to look for evidence of entry into the house or onto the property. In some cases,
Mr. Hook contacted Mr. Yampol’s son and the two of them entered the residence and walked
around the home. In some cases, such as when multiple sensors were activated, the police were
contacted, and Mr. Hook and Mr. Yampol’s son accompanied the police to the residence. It is
not uncommon for the sensors to be activated by animals (e.g., a moth or mouse).
21. Is the “lab” referenced in Mr. Yampol’s discussions the building on Mr.
Yampol’s property used solely for the purpose of processing specimens, and
are any items missing from the “lab”?
There is a laboratory located on a different property owned by Mr. Yampol—not at the 11
Tennis Court Road residence—that is used to process minerals, but none of the items discovered
missing in April 2017, including the 26 kg of Imperial Topaz, were kept in that lab.
22. Copy of the police report. Please advise if these police and alarm records are
the entirety of the responsive records.
The police and alarm records already provided to you on April 29, 2021, represent the
entirety of responsive records in Mr. Yampol’s possession. We are not aware of police reports
regarding the loss described in the April 21, 2021 Proof of Loss (the “Proof of Loss”) other than
those that were provided to you on April 29, 2021.
Description of Mr. Yampol’s “myriad” properties
See response to question 17.
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
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Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 9
Whether it has been confirmed that the items reported as missing are not
in fact located at one of Mr. Yampol’s properties or any of the institutions
where he may store and/or exhibit his collection
See response to question 17.
K2 investigation report
K2 was asked to begin an investigation. However, after they were unsuccessful in
recovering footage from the January-April 2017 time period from the security cameras on the
premises due to the camera’s limited storage of footage, Mr. Yampol declined to extend a
contract for K2’s services and no report was issued.
Information on any open, pending, or closed investigations by law
enforcement or others concerning the items reported by Mr. Yampol as
missing
Mr. Yampol has produced to the Underwriters the information in his possession
regarding investigations by law enforcement concerning the lost items. A number of contacts
were made in an effort to encourage the FBI to take charge of any investigation, but the effort
has not to Mr. Yampol’s knowledge been successful. As described, Mr. Yampol is not aware that
Underwriters or anyone acting on behalf of Underwriters has conducted an investigation of the
loss.
Photographs of the complete collection of Imperial Topaz alleged to be
missing, or of the other items
There are no photographs of the complete collection. The Beesley Report includes a
number of photographs of a part of the missing Imperial Topaz collection.
It was reported to Underwriters on September 10, 2018 and November 6,
2019 that Mr. Yampol had a lead on the Imperial Topaz
We have provided all relevant documentation. As discussed above, the specimen
discussed in the September 10, 2018 letter was a spessartine mineral, not Imperial Topaz.
* * *
As the loss of the Imperial Topaz, with a fair market value of $220 million, far exceeds
the $42 million Policy limits, the information provided in this letter prioritizes details that may
relate to the Imperial Topaz. It is in the interests of both parties not to expend considerable
resources addressing additional items involving losses in excess of the policy limits. To the
extent that you request additional information, please explain how the information you request
is connected to your adjustment of Mr. Yampol’s loss of the 26 kg of Imperial Topaz. Mr.
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023
NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023
Mr. Owen B. Carragher, Jr.
May 13, 2022
Page 10
Yampol continues to cooperate with the Underwriters and continues to reserve all rights under
the Policy, at law, or in equity.
Sincerely,
Kevin R. Glandon
cc: Richard Mancuso (Smith Associates)
David B. Goodwin (Covington)
Shira Poliak (Covington)
Preview
FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 EXHIBIT 4 FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 By Email May 13, 2022 Mr. Owen B. Carragher, Jr. Clyde & Co. The Chrysler Building 405 Lexington Avenue, 16th Floor New York, NY 10174 Owen.Carragher@clydeco.us Re: Insured: Barry Yampol Policy No.: B0507N16SF04900 Your Reference: 10120160 Matter: Missing Gems/Rough/Minerals/Crystals Dear Mr. Carragher: We write to follow up on our letter of July 23, 2021,1 in part to request that the Underwriters complete the adjustment of, and make payment on, Mr. Barry Yampol’s insurance claim, and also to provide documentation requested in your letter of June 29, 2021. I. Mr. Yampol Has Complied with his Obligations Under the Policy As a preliminary matter, Mr. Yampol has complied with his obligations under the policy and is entitled to coverage. Under the policy, Mr. Yampol must present “satisfactory proof of value and ownership.” Policy No. B0507N16SF04900 (the “Policy”), at p. 7. The Proof of Loss submitted to the Underwriters on April 29, 2021, demonstrates that Mr. Yampol is entitled to coverage for the loss of 26 kg of Imperial Topaz he discovered missing on April 2, 2017. The purpose of a proof of loss in respect of an insurance policy is to provide the insurer with “information by which ‘the insurer may be able intelligently to form some estimate of his rights and liabilities before he is obliged to pay.’” Binder v. Commercial Travelers Mut. Accident Ass’n of Am., 165 F.2d 896, 899 (2d Cir. 1947) (quoting O’Reilly v. Guardian Mut. Life Ins. Co. of N.Y., 60 N.Y. 169, 173). Mr. Yampol has provided more than sufficient evidence to allow Underwriters to form an estimate of what they must pay. 1 To date, we have not received a response to our July 23, 2021 letter, in which we request an explanation for Underwriters’ failure to promptly and properly investigate this claim. Please note that Underwriters were obligated to make an appropriate reply within 15 business days to communications by the insured. See N.Y. Comp. Codes R. & Regs. tit. 11, § 216.4(b). FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 2 With respect to the valuation of lost items, Mr. Yampol has established that the fair market value estimate of the Imperial Topaz is over $220 million, far in excess of the Policy limit, through the detailed 82-page expert report of Mr. C.R. Beesley. See Yampol_Imperial Topaz_00000001-Yampol_Imperial Topaz_00000082. As regards ownership, there can be no dispute that Mr. Yampol is the rightful owner of the Imperial Topaz that is the subject of this insurance claim. As set forth in detail in the Proof of Loss, Mr. Yampol has owned the Vermillion Mine in Ouro Preto, Brazil, in the State of Minas Gerais—which produces Imperial Topaz—for more than 30 years. Memorandum at 4. The Vermillion Mine produces high quality Imperial Topaz crystals with top grade color. The Underwriters were well aware of Mr. Yampol’s interests in mining gems when the Underwriters agreed to provide insurance to Mr. Yampol for the loss of “cut gems” and “gems rough,” whether located at Mr. Yampol’s New York residence, in vault systems in Ouro Preto and Minas Gerais, or at other covered locations. Policy, p. 1 of 18. The Proof of Loss also includes an article explaining that lapidary expert Elvis Gray examined the Imperial Topaz reserve when Mr. Yampol acquired the mine, and Mr. Beesley’s confirmation that Mr. Yampol regularly selected prime examples of Imperial Topaz material from the Mine for his personal collection. See Staebler Article at Yampol_Imperial Topaz_00000144; Beesley Expert Rep. at Yampol_Imperial Topaz_00000025. Additionally, as the Underwriters are aware, Mr. Yampol displayed his collection publicly at the Tucson Gem and Mineral Show in 1995 and 2010. Id. at Yampol_Imperial Topaz_00000034-35. II. Additional Information Related to Mr. Yampol’s Claim In your letter of June 29, 2021, you asked several questions regarding the Imperial Topaz and regarding other lost items. We include below additional information in response to your requests.2 The 26 kg of Imperial Topaz was located in the main residence at 11 Tennis Court Road, Cove Neck, New York. The residence is alarmed and equipped with security cameras. In total, there were approximately twelve cases, each of which has approximately ten to twelve drawers. The 26 kg of Imperial Topaz at issue in this claim was stored in one of these cases, which were locked. The keys to those cases are stored in a locked metal key box on a separate floor from the cases, which are located on the basement level of the residence. They were stored there at the 2 Many of the questions are answered by the 250 pages of documentation already provided to you in support of the Proof of Loss. For example, a number of the missing items were photographed at the Tucson Gem & Mineral Show in 2010, and the photograph is included as part of the production at Yampol_Imperial Topaz_00000245, in addition to a detailed article describing the reaction to Mr. Yampol’s collection at that public display at Yampol_Imperial Topaz_00000132-148. We have also provided you with alarm logs and extensive evidence of the valuation of the missing items in a thorough expert report prepared by Mr. Beesley, a preeminent appraisal and assessment expert. Mr. Beesley’s credentials are detailed in that production as well. FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 3 time of the disappearance in 2017. The only person with authorized access to keys to the cases was Mr. Yampol. Mr. Yampol last saw the missing Imperial Topaz collection around January 20, 2017, in a case that he locked before he departed for Florida on January 25, 2017. Mr. Yampol returned to the residence on March 24, 2017, and, on April 2, 2017, Mr. Yampol discovered that the items were missing. The cases were intact, with no evidence of forced entry, nor was there evidence of a break-in at the property. Employees of Mr. Yampol who work at Mr. Yampol’s properties, including James Hook and Bobby Gorney, were responsible for contacting the police if they observed evidence of a break-in, and no such calls were made. Unfortunately, Mr. Yampol has not recovered any of the missing items since initiating this claim, despite significant efforts to do so, through outreach to the Federal Bureau of Investigation (“FBI”) and the Nassau County Police Department, and through the retention of a private investigation firm, K2 Intelligence (“K2”). As explained in our September 10, 2018 letter, Mr. Yampol did locate one item, a spessartine mineral specimen—a species of garnet, not Imperial Topaz—that was missing from his collection when a mineral dealer offered to sell Mr. Yampol one of Mr. Yampol’s own pieces. Mr. Yampol contacted Nassau County police and, through K2, the FBI on September 7, 2018, regarding the one item he identified, and we informed Underwriters of the sighting three days later, on September 10, 2018. The Underwriters were also notified on November 6, 2019, that Mr. Yampol had been contacted by a gem cutter who had been offered a 100 ct red Imperial Topaz, which both the gem cutter and Mr. Yampol believed could only have come from Mr. Yampol’s collection of Imperial Topaz. After Mr. Yampol’s loss of the Imperial Topaz collection, other dealers in mineral specimens have also mentioned to Mr. Yampol seeing an unusually large quantity of Imperial Topaz of very high quality and color being offered for sale at mineral specimen exhibitions in Tucson, Arizona and Hong Kong, China. In addition, Mr. Yampol’s invitation to the Underwriters to visit his property and to assist in the recovery of the missing items–to which Underwriters have never responded–remains open. To the best of our knowledge, the following are responses to enumerated questions included in your June 29, 2021 letter. Mr. Yampol reserves the right to supplement this information. 1. A list of the missing pieces. List and describe the characteristics of the Imperial Topaz The 26 kg of Imperial Topaz described in the Proof of Loss, which Mr. Yampol discovered missing on April 2, 2017, is described at length in the expert report prepared by Mr. Cap Beesley, which we submitted to Underwriters in April 2021. The estimated value of the Imperial Topaz described in the Proof of Loss is more than five times the Policy’s limit, see Beesley Expert Rep. at Yampol_Imperial Topaz_00000074. FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 4 Identify the dimensions, weight, quality, color, value of each missing piece The Imperial Topaz is described at length in the expert report prepared by Mr. Cap Beesley, which we submitted to Underwriters in April 2021. See, e.g., Beesley Report, p. 38. See also the previous response. How many pieces are missing Due to the size of the collection, Mr. Yampol’s Imperial Topaz is measured by weight. See Beesley Report, page 12 for photographs of a subset of the collection. See also the previous response. 2. Information on when Mr. Yampol acquired the items in question. In 1985, Mr. Yampol paid approximately $2 million to acquire 17 kg of Imperial Topaz in connection with his acquisition of the Vermillion Mine, 6 kg of which became a part of Mr. Yampol’s collection. The remainder, 20 kg of Imperial Topaz, was extracted from the Vermillion Mine after Mr. Yampol purchased the mine.3 3. Information on where/from whom Mr. Yampol acquired the items in question. See previous response. 4. The purchase price for each item. See previous response. 5. Copies of the purchase invoices. See previous response. Purchase, acquisition, mine, mining, importation, shipping, or duty records or any other documents of any kind that demonstrate his ownership of . . . the Imperial Topaz See previous response. Between 1995 and 2005 alone, at least 830 kg of Imperial Topaz were imported from Mr. Yampol’s mine in Brazil to his business and personal addresses in New York and Florida. 6. Were all of the now missing items in locked cases? The missing Imperial Topaz was stored in a locked case at the time of the loss. 3 The weights in this paragraph are accurate to plus or minus 0.5 g. FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 5 7. Are all of the cases in question located in one structure on the property or multiple structures? All of the cases in question were located in one structure on the property, specifically the main residence at 11 Tennis Court Road We note that Mr. Yampol has repeatedly offered to have Underwriters or their agents visit the property and interview Mr. Yampol, but Underwriters have declined each time. 8. Are all the structures the cases are located in alarmed? Yes, the main residence in which the cases are located is alarmed. 9. Is it correct that there were no signs of damage/forced entry into the cases in question? When Mr. Yampol returned to his home and discovered in April 2017 that the Imperial Topaz was missing, he did not see signs of damage or forced entry into the cases in question. 10. Who had keys to the cases in question? To our knowledge, Mr. Yampol is the only person who had keys to the cases in question. 11. Where were the keys stored? The keys to those cases are stored in a locked metal key box on a separate floor from the cases themselves. Mr. Yampol left the keys locked in the key box when he departed his home for Florida in January 2017, and he found the keys there when he returned. 12. When was the last time you are certain the items were no longer in their cases? Mr. Yampol last saw his collection of Imperial Topaz in its case on January 20, 2017, before departing on a trip, and reported the items missing on or around April 2, 2017, upon his return. Additional details are available on page 9 of the Memorandum in Support of Proof of Loss and accompanying police reports. 13. A list of all persons who would have had access to the areas of the home/property that contained the cases from which items are missing. Mr. Yampol’s current understanding is that the individuals listed below had access to the residence between January 20, 2017, and April 2, 2017. It was standard practice at the home that each outside vendor on the property be accompanied by an employee or family member at all times while inside the house. Employees: James Hook, Bobby Gorney, Jose Garcia FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 6 02/20/2017 and 3/22/2017 - Armas Stepe 14. With respect to the items in the case(s) that are still accounted for, are they all where they are supposed to be or does it appear to you as though they have been moved around? Mr. Yampol noticed that certain items that were left behind in the cabinets had been visibly disturbed and moved from their original positions. Whether the cabinets and cases in question were locked and/or alarmed The cabinets in question were locked and located in a secure area of Mr. Yampol’s home when he departed his residence in New York in January 2017. Whether any evidence exists that the cabinets and cases were accessed in an unauthorized manner Mr. Yampol never authorized anyone to remove the Imperial Topaz collection, or to access any of the cabinets in question. Who was authorized to access the cabinets and cases and by what means Mr. Yampol was the only person with authority to access the cases; Mr. Yampol did not authorize anyone else to access the cases. In what state the remaining items were left behind (and/or what those items were) Mr. Yampol noticed that certain items that were left behind in the cabinets had been visibly disturbed and moved from their original positions. Where and how Mr. Yampol stored his collection, and whether he continued to store materials in locations from which items allegedly were stolen and/or went missing Prior to this loss, Mr. Yampol stored his 26 kg Imperial Topaz collection in a locked case, as discussed above. Subsequent to the loss, Mr. Yampol upgraded the camera systems for the property and added more internal and external sensors at 11 Tennis Court Road. Additional security cameras were installed inside and outside of Mr. Yampol’s home, as well as motion sensors and infrared sensors. Mr. Yampol moved some of the minerals to his other addresses for temporary storage. Mr. Yampol also moved some of his specimens to storage at Yale University, Harvard University, and Crozier Fine Arts, which is owned by Iron Mountain. Mr. Yampol has acquired two additional high quality vaults for storage at his residence. FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 7 More details regarding where and how the missing items were secured, the number of cabinets and cases at issue, and/or where such cabinets and cases were situated. There were approximately twelve total cases, each of which had approximately ten to twelve drawers. Mr. Yampol’s Imperial Topaz collection was stored in one of these cases. The cases were locked and located in a secure area of the main house, which was itself secured and alarmed. 15. Is there a security staff on premises, and, if so, are they aware of any incidents that might explain what has become of the items in question? As previously noted, employees of Mr. Yampol who work at Mr. Yampol’s properties, including James Hook and Bobby Gorney, were responsible for contacting the police if they observed evidence of a break-in. Separate security staff were not employed on premises. 16. Have you or the police reviewed your CCTV footage to see whether there is any information or evidence that can be gleaned from this? Despite Mr. Yampol’s efforts to work with Nassau County police to review security footage from the property, no information could be gleaned from the footage. The outdoor Nest cameras at the time only retained recordings for two weeks, so they provided limited evidence by the time of Mr. Yampol’s return to the property. 17. Have you checked your residences, banks, institutions to which you lend, etc., for the missing pieces? After moving his Imperial Topaz from the Bank of New York—which occurred before the loss in question—Mr. Yampol stored his Imperial Topaz collection at his home at 11 Tennis Court Road, and at no other location. The Imperial Topaz was locked in a case at his home when Mr. Yampol departed in January 2017, no one other than Mr. Yampol had a key to the case, and no one other than Mr. Yampol was authorized to access the collection. Mr. Yampol has confirmed that the Imperial Topaz is not present at his home. 18. Are there any missing items or pieces that have ever been part of an exhibit or display that was open to the general public, including any exhibit and/or display on Mr. Yampol’s property? Please review the Beesley Report, which describes at length the displays at the Tucson Gem and Mineral Exhibitions in 1995 and 2010. The Imperial Topaz on display at the 1995 and 2010 exhibitions represented a part of Mr. Yampol’s collection. FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 8 19. Copies of false alarm reports, and confirmation of any genuine alarm events in the timeframe in question. Alarm records in Mr. Yampol’s possession for the January 1, 2017, to April 4, 2017, period have been provided to Underwriters. 20. Confirmation of any instances of genuine alarm events in the timeframe in question. The alarm records provided to Underwriters reflect instances of the sensors activating, but to Mr. Yampol’s knowledge in each instance the alarm was checked and no intruder was discovered. In the event that the sensors were activated, the general practice—including during the January-March 2017 period—was for James Hook to be notified of the sensor activation, at which point Mr. Hook accessed the security system to review the cameras or other sensors in the affected room or area and any adjoining areas as appropriate to ascertain whether there was any activity in the area. Mr. Hook then drove to the residence and walked around the house with a security dog to look for evidence of entry into the house or onto the property. In some cases, Mr. Hook contacted Mr. Yampol’s son and the two of them entered the residence and walked around the home. In some cases, such as when multiple sensors were activated, the police were contacted, and Mr. Hook and Mr. Yampol’s son accompanied the police to the residence. It is not uncommon for the sensors to be activated by animals (e.g., a moth or mouse). 21. Is the “lab” referenced in Mr. Yampol’s discussions the building on Mr. Yampol’s property used solely for the purpose of processing specimens, and are any items missing from the “lab”? There is a laboratory located on a different property owned by Mr. Yampol—not at the 11 Tennis Court Road residence—that is used to process minerals, but none of the items discovered missing in April 2017, including the 26 kg of Imperial Topaz, were kept in that lab. 22. Copy of the police report. Please advise if these police and alarm records are the entirety of the responsive records. The police and alarm records already provided to you on April 29, 2021, represent the entirety of responsive records in Mr. Yampol’s possession. We are not aware of police reports regarding the loss described in the April 21, 2021 Proof of Loss (the “Proof of Loss”) other than those that were provided to you on April 29, 2021. Description of Mr. Yampol’s “myriad” properties See response to question 17. FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 9 Whether it has been confirmed that the items reported as missing are not in fact located at one of Mr. Yampol’s properties or any of the institutions where he may store and/or exhibit his collection See response to question 17. K2 investigation report K2 was asked to begin an investigation. However, after they were unsuccessful in recovering footage from the January-April 2017 time period from the security cameras on the premises due to the camera’s limited storage of footage, Mr. Yampol declined to extend a contract for K2’s services and no report was issued. Information on any open, pending, or closed investigations by law enforcement or others concerning the items reported by Mr. Yampol as missing Mr. Yampol has produced to the Underwriters the information in his possession regarding investigations by law enforcement concerning the lost items. A number of contacts were made in an effort to encourage the FBI to take charge of any investigation, but the effort has not to Mr. Yampol’s knowledge been successful. As described, Mr. Yampol is not aware that Underwriters or anyone acting on behalf of Underwriters has conducted an investigation of the loss. Photographs of the complete collection of Imperial Topaz alleged to be missing, or of the other items There are no photographs of the complete collection. The Beesley Report includes a number of photographs of a part of the missing Imperial Topaz collection. It was reported to Underwriters on September 10, 2018 and November 6, 2019 that Mr. Yampol had a lead on the Imperial Topaz We have provided all relevant documentation. As discussed above, the specimen discussed in the September 10, 2018 letter was a spessartine mineral, not Imperial Topaz. * * * As the loss of the Imperial Topaz, with a fair market value of $220 million, far exceeds the $42 million Policy limits, the information provided in this letter prioritizes details that may relate to the Imperial Topaz. It is in the interests of both parties not to expend considerable resources addressing additional items involving losses in excess of the policy limits. To the extent that you request additional information, please explain how the information you request is connected to your adjustment of Mr. Yampol’s loss of the 26 kg of Imperial Topaz. Mr. FILED: NASSAU COUNTY CLERK 01/18/2023 04:30 PM INDEX NO. 601285/2023 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 01/18/2023 Mr. Owen B. Carragher, Jr. May 13, 2022 Page 10 Yampol continues to cooperate with the Underwriters and continues to reserve all rights under the Policy, at law, or in equity. Sincerely, Kevin R. Glandon cc: Richard Mancuso (Smith Associates) David B. Goodwin (Covington) Shira Poliak (Covington)