Preview
INDEX NO. 650284/2013
(FILED: NEW YORK COUNTY CLERK 0371772013)
NYSCEF DOC. NO. 11 RECEIVED NYSCEF: 03/17/2013
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
nee nen enn men ene nnnn nnn nen ennnnenenenennne
DIMENSION TRADING PARTNERS, LLC,
Index No. 650284/13
Plaintiff,
Hon. Shlomo S. Hagler
-against- Part 17
JAMIE F. LISSETTE and
HAMMERSTONE NV, INC., AFFIDAVIT OF GARY SOFEN
Defendants.
een ee ene nnn nnnnnnnnenenennen
STATE OF FLORIDA )
) ss.
COUNTY OF ST. LUCIE )
GARY SOFEN, being duly sworn, deposes and says:
1 Iam the managing member of Dimension Trading Partners, LLC (“DTP”),
Plaintiff in this action. I am personally familiar with the facts set forth herein and submit this
affidavit in further support of DTP’s motion for summary judgment on the promissory note
executed by Defendants and in opposition to Defendants’ cross-motion to compel arbitration.
2. DTP has never been a broker dealer, a member of FINRA or any other exchange.
4
3 DTP never had any ownership interest in Dimension Trading Group, LLC
(“DTG”); nor did DTG have any ownership interest in DTP. They are completely separate
corporate entities with their own operations.
4 Ralph A. Daiuto, Jr. has never been an officer, executive or member of DTP.
5 DTP was not merged into World Trade Financial Group (“WTFG”) and has no
relationship with WTFG.
6 DTP’s action to collect on the promissory note executed by Defendant Jaime
Lissette (“Lissette”) and Hammerstone NV, Inc. (“Hammerstone’’) is part of the winding up of
DTP.
7 Hammerstone was a member of DTP and had substantial trading losses in 2008
and 2009. DTP issued K-1s to Hammerstone reflecting those losses. Copies of those K-1s are
attached hereto as Exhibit A.
8 Upon information and belief, Lissette was the sole owner or held the controlling
interest in Hammerstone and made trading decisions on behalf of Hammerstone at the time it
incurred those trading losses.
9 DTP never had an arrangement with Lissette “to stake [him] the $100,000 in
trading funds in return for 60% of any profits” as described in his affidavit.
10. DTP never gave Lissette a “user name and password” in 2010 as he claims in his
affidavit.
ll. Upon information and belief, Lissette traded at Dimension Trading Group, LLC
(“DTG”), a member firm of the Chicago Board Stock Exchange, in 2010.
y
Gary Sofe
Swom to before me this
15th day of March, 2013.
vi
rotary Public
4 EN TIERNEi 569
wy CORNS SIO‘ApiilN 4 20,EE 178
2016
ors
wae ube dene
EXPIRES:
NB sented
EXHIBIT A
651108
(Cleinat k-1 [amended k-1 OMe No. 1545-0099
Schedule K-1 2008 Pariner's Share of Current Year Income,
(Form 1065) For calendar year 2008, or tax Deductions, Credits, and Other Items
Department of the Treasury year beginning + 2008 1 Ordinary business income (loss) }15 | Credits
Internal Revenue Service ending oO. ~41--~--~---------
2 Net rental real estale income (loss)
Partner's Share of Income, Deductions,
Credits, etc. > See separate instructions. 3 Other net rental income (loss) 16 | Foreign transactions
-4+--------------
Information About the Partnership 4 Guaranteed payments
A Partnership's employer identification number
11-3820347 5 Interest ingome
Parinership's name, address, city, state, and ZIP code
Dimension Trading Partners 6aj Ordinary dividends
1816 Wildcat Cove Drive -4--------------
Fort Pierce, FL 34949 6b] Qualified dividends
-4--------------
IRS Center where partnership filed return 7 | Royalties
Ogden UT
& | Net short-term capital gain (loss)
DB [[[check if this is a publicly traded partnership (PTP) al Net long-term capital gain (loss) 7 Alternative minimum tax (AMT) items
-41--------------
Information About the Partner 9b] Collectibles (28%) gain (loss)
E Partner's identifying number 9c} Unrecaptured section 1250 gain
20-2689613
Partner's name, address, city, state, and ZIP code 110 | Net section 1231 gain (loss) 18 Tax-exempt income and
Hammerstone NV, Inc nondeductible expenses
650 Fifth Avenue 1 Other income (loss)
Suite 600 FE *STMT
New York, N¥ 10019 Lt .------------
LI cenerat partner or LLC Limited partner or other
member-manager member
[x] domestic partner (Foreign partner 19 Distributions
12 | Section 179 deduction 70,000.
What type of entity is this partner? Corporation
13 | Other deductions
Partner's share of profit, loss, and capital (see instructions): Other information
jeginning nding
Profit 0.00000 & 0.00000 &
Loss 0.00000 % 0.00000 $%
Capital 9.00000 & 0.00000 &
-4--------------
Partner's share of liabilities at year end: 14 | Self-employment earnings (loss)
Nonrecourse aa---- +--+ --- -j--------------
Qualified nonrecourse financing
Recourse
*See attached statement for additional information.
Partner's capital account analysis: FE
Q
Beginning capital account $ R
Capital contributed during the year $. 317,000.J1
Current year increase (decrease) . $. -154,033.)s
Withdrawals and distributions 3 70,000. u
Ending capital account $____
92, 967.]é
BAA
A Tax basis
Other (explain)
[1caar Lisection 704(b) book
For Paperwork Reduction Act Notice, see Instructions for Form 1065.
LC
Schedule K-1 (Form 1065) 2008
PTPAOS12, 12/75/08
Schedule K-1 (Form 1065) 2008 Hammerstone NV, Inc 11-3820347 Page 2
This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040, For detailed reporting
and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your,income tax return.
Ordinary business income (loss) Determine whether the income (loss) is passive
for nonpassive and enter on your relurn as follows. Code y Report on
Report on J Work opportunity credit Form 5884, line 3
‘See the Partner's Instructions K Disabled. access credit See the Partner instructions
Passive loss L Empéwerment zone and renewal community
Passive income ‘Schedule E, line 28, column (9) ‘employment creidt Form 8844, line 3
Nonpassive toss ‘Schedule E, line 28, column (hi) mM Credif for increasing research activties ‘See the Partner's instwuctions
Nonpassive income Schedule €, line 28, column () N Credit for employer social security and
Net rental reat estate income (103s) See the Partner's Instructions Medicare texes Form 8846, ine 5
Other net rental income (105s) Oo Backup withholding Form 1049, line 62
Net income Schedule E, 28, column (a) P Other credits See the Partners Instructions
Net toss. See the Partner's instructions 16 Foreign transactions
4 Guaranteed payments, Schedule E, line 28, column () A. Name of court oF US. possession
5 Interest income Form 1040, line 83 B Gross income from all sources Form 1116, Part | -
6a Ordinary dividends Form 1040, tine 9a C Gross income sourced at partner level
6 Qualified dividends Form 1040, line 9b Foreign’ gross income sourced at partnership level
7 Royalties Schedule E, line 4 D Passive category
8 Net short-term capital qain (loss) ‘Schedule D, tine 5, column (f) E General category Form 1116, Part 1
‘Qa Net iong-term capital gt oss) ‘Schedule D, line 12, column (D F other
‘9b Collectibles 28%) aui (loss) 28% Rate Gain Worksheet, line Deductions allocated and apportioned at partner level
4@ (Schedule O Instructions) G Interest expense Form 1116, Part |
9c Unrecaptured section 1250 gain ‘See the Partner's instructions H other Form 1116, Part f
10 Net section 1231 gain (loss) ‘See the Partner's Instructions Deductions allocated and apportioned at partnership level to
11 other income (loss} foreign source incom
Code 1 Passive category
A Other portfatio income (oss) ‘See the Partner’s Instructions J Generat category Form 1116, Patt |
B Involuntary conversions See the Partner's instructions K other
c Section 1256 contracts and straddles Form 6781, tine1 Other information
D Mining exploration costs recapture See Pub 535 Total foreign taxes paid Form 1116, Part tl
E Cancellation of debt Form 1040, line 21 of Form 982 Total foreign taxes accrued Form 1116, Part t
F Other income (loss) ‘See the Partner's Instructions Reduction in taxes available for credit Form 1116, fine 12
12 Section 179 deduction ‘Seo the Partner's instructions Foreign trading gross receipts Form 8873,
13 Other deductions Exlraterritorial income exclusion Form 8873
A Cash contributions 60%) ‘ther fo a transactions ‘See the Partner's Instructions
Cash contributions (20%) 7 ‘Alternative minimum tax (AMT) items
Noncash contributions (50%) ‘See the Partner's, A Post-1986 depreciation adjustment
Nancash contributions (20%) Instructions: B Adjusted gain or loss ‘See the Partner's
Capital gain property to a 50% C Depletion (other than oil & ges) Instructions and
organization D Olt gas. & geothermal — gross income the Instructions for
Capital gain property (20%) E Oit-gas, & geothermal— deductions Form 6251
Contributions (100%) F Other AMT items
Investment interest expense Form 4952, tine 1 18 Tax-oxempt income and nondeductible expenses
Deductions — royally income Schedule E, lina 18 A. Tax-exeriipt interest income Form 1040, line 8b
Section 59(e)(2) expenditures ‘See the Partner's Instructions B other tax-exempt income ‘See the Partner's Instructions
Deductions ~ portfolio (2% floor) ‘Schedule A, line 23 © Nondeductible expenses ‘See the Partner's Instructions
Deductions — portfolio (other) Schedule A, line 28 9 Distributions:
}
Amounts paid for medical Schedule A, line 1 or A Cash and marketable securities:
insurane: Form 1049, tine
Educational assistance benefits ‘See the Partners Instructions B other property ‘See Partner's
lastructions
Dependent care benefits Form 2441, line 14 C Distribution subject to section 737
reproductive period expenses ‘See the Partners Instructions Other information
Commercial revitalization deduction from Investment income Form 4952, line 4a
rental real estate activities See Form 8582 Instructions investment expenses Form 4952, tine §
Pensions and IRAS See the Partner's instructions Fuel tax credit information Form 4135
s Reforestation expense deduction See the Partner's Instructions Qualified rehat tation exoenditures (other than See the Parine’s Instructions
T Domestic production activities information ‘See Form 8903 Instructions rental reat estate)
Form 8903, line 7 Basis of energy property See the Partner's Instructions
U Qualified production activities income facaplure af low-income nousing creat (section
V Employer's W-2 wages Form 8903, tine 15 Form 8611, lineB
W Other deductions See the Partner's {nstructions Recapture of low-income housing credit (other) Form 8611, lineB
414 Seitomployment exrings Goss) Recapture of investment credit Form 4255
Hote. ff you have a section 179 deduction or any partner-level deductions, see the Rocapture of other credits See the Parine’s Instructions
Parties ‘Instructions before completing Schedul Look back interest — completed
‘Net earnings (loss) from ‘Schedule SE, Section A or 8 long-term contracls See Form 8697
self-employment Look-tiack interest — income
B Gross tarming or fishing income See the Partner's Insteuctions forecast method ‘See Form 8866
C Gross non-farm income See the Pariner’s Instructions Dispositions of property with
15 Creits section 179 deductions
A Low-income housing credit (Section 42)(5)) See the Partner's Instructions Racapture of section 179 deduction
from pre-2008 nuldings Interest expense for corporate partners
B Low-income fi creda (other) fram ‘See the Partnar's Instructions Section 453()() information
‘pre-2008 buildings Settion 453A(c) information
c Low-income housing credit (Section 42¢)(5)) Form 8586, line 11
from post-2007 buildings Section 1260(b) information
‘See the Partner's
Instructions
D Low-income housing credit (other) from Form 8586, line 11 Interest allocable to production expenditures,
‘post-2007 buildings CCF nonqualified withdrawals
E realQualified rehabilitation expenditures (rental Depletion information — oil and gas
estate) ‘See the Partner's
F ‘Other rental real estate credits, Instructions u Amortization of reforestation costs
G Other rental credits V_ Unrelated business taxable income
H Ungisteibuted capitat gars credit Form 1040, tine 68; check box a W Precontribution gain (oss)
1 aicohot and cellulosic biofuel fvels credit Form 6478, tine 9 X Other information
PTPADSIZ yansio, Schedule K-1 (Form 1065) 2008
651109
C1Final k-1 ‘ [amended K-1 OMB No. 1545-0099
Schedule K-1 2009 Partner's Share of Current Year Income,
(Form 1065) For calendar year 2009, or ta Deductions, Credits, and Other Items
Department of the Treasury year beginning 2008 1 Ordinary business income (loss) ]15_ | Credits
Intemal Revenue Service ending . 0.|0
2 ‘Net rental real estate income (loss)
Partner's Share of Income, Deductions,
Credits, etc. > See separate instructions. 3 Other net rental income (loss) 16 | Foreign transactions
i ~4{-------
Information About the Partnership 4 Guaranteed: payments
A Partnership's employer identification number
11-3820347 5 interest income
B Partnership's name, address, city, state, and ZIP code -------- ----
Dimension Trading Partners 6a| Ordinary dividends
1816 Wildcat Cove Drive
Fort Pierce, FL 34949 6b} Qualified dividends
w-------------
IRS Center where partnership filed return 7 | Royalties
Ogden, UT
(check if this is a publicly traded partnership (PTP) 8 | Net short-term capital gain (loss)
o
information About the Partner
al Net long-term capital gain (loss) |17 Alternative minimum tax (AMT) items
-
E Partner's identifying number 9bj Collectibles (28%) gain (loss)
20-2689613
F Partner's name, address, city, slate, and ZIP code 9¢| Unrecaptured section 1250 gain
Hammerstone NV, Ine
650 Fifth Avenue HO | Net section 1231 gain (loss) 18 Tax-exempt income and
Suite 600 nondeductible expenses
New York, N¥_ 10019 W1 Other income (loss) L. ------ -----|
LJ Genera! partner or LLC Ex] Limited partner or other =127, 967.
member-manager LLC member |B4
LL ------ aa-He
[K] Domestic partner [Foreign partner pot. __-__---------
What type of entity is this partner? Corporation 19 Distributions
Partner's share of profit, loss, and capilal (see instructions): 12 | Section 179 deduction ----- ------
Beginning Ending
Profit 0.00000 &
0.00000 {13 | Other deductions
J. f.--_----------- 20 Other information
Loss, 0.00000 % 0.00000 %
Capital 0.00000 % 0.00000 %
~-------------- -----------
Partner's share of liabilities at year end:
Nonrecourse 8. --------------
Qualified nonrecourse financing § 14 | Self-employment earnings (loss)
Recourse § | .{.____----------}-4--------------
Partner's capital account analysis:
Beginning capital account $___92, 967, *See attached statement for additional information.
Capital contributed during the year $ 35,000.
Current year increase (decrease) : -127, 967.
Withdrawals and distributions . .
Ending capital account $
Ei Tax basis
‘Other (explain)
(caae Lsection 704(0) book
Did the partner contribute property with a built-in gain or loss?
Dyes No
if-Yes", altach statement (see instructions)
BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 Form 1065) 2009
PTPAOSI2 08/14/09
Schedule K-1 (Form 1065) 2009 _Hammerstone NV, Inc 11-3820347 Page 2
reporting
This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting iniomiation for partners who file Form 1040, For detailed
and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return.
1. Ordinary business income (oss}. Determine whether the income (oss) is passive Code". Report on
‘or nonpassive and enter on your Feturn as ‘ol Disabled access credit See the Partner's instructions
Report on
‘See the Partner's Instructions Empowerment zone and renewal community Form 8844, line 3
Passive loss ‘emplayment creidt
Passive income ScheduleE, line 28, column (9) Credit for increasing research actives ‘See tha Partner's Instructions
Nonpassive loss Schedule E, fine 28, column (h) Credit for employer social security and
Nonpassive income Schedule €, line 28, column @) re Form 8846, line S
Net rental real estate income (105s) ‘See the Partner's Instructions, Backup Withholding Form 1069, fine 61
Other met rental income (oss) Other credits See the Partner's Instructions
Net income Schedule E, 28, column (@) 16 Foreign transactions 4
Net loss See the Partner's Instructions AL Name of country of U.S. possession
4 Gu snteed payments ScheduleE, fine 28, column () B Gross income from all sources Form 1116, Part|
‘5 interest income Form 1040, fine 8 CG Gross income sourced at partner level
Ga Ordinary dividends Form 1040, tine 9a Foreign gross income sourced at partnership level
6b Qualified dividends Form 1040, line 9b D Passive category
7 Royalties Schedule E, line 4 E General category Form 1116, Part|
8 Net short-term capital gain (loss) ‘Schedule O, line 5, column (1) F other
9a Net long-term caj I gain (loss) ‘Schedule D, line 12, column () Deductions allocated and apportioned at partner level
9b Collectibles (28%) gain Gass) 28% Rate Gain Worksheet, tine G interest expense Form 1116, Part|
4 (Schedule D Instructions) H other Form 1 16, Pa
9¢ Unrecaptured section 1250 4 See the Partner's Instructions
‘See the Pariner’s instructions
Deductions allocated and apportioned at partnership level to
10 Net section 1231 gain (loss) foreign source income
11 Other income Goss) 1 Passive category
Code J General category Form 1116, Patt|
A. Other portiotio income (loss) ‘See the Partners Instructions K other
B involuntary conversions See the Partner's Instructions Other information
Form 1116, Part t
© Section 1256 contracts and straddles Form 6781, line1 L. Total foreign taxes paid
D. Mining exploration costs recapture ‘See Pub 535 M1 Totat foreign taxes accrued Form 1116, Patt ft
E Cancetiation of devt Form 1049, fine 21 or Forrn 982 NN. Reduction in taxes available for credit Form 1116, line 12
F other income (oss) ‘See the Pariner’s Instructions O Foreign trading gross receipts, Form 8873
12 Section 179 deduction ‘See the Partner's Instructions P_ Extraterritosial income exclusion Form 8873
13 Other deductions Q Other foreign transactions See the Partner's Instructions
‘Cash contributions (50%) Alternative minimum tax (ANT) items
Cash contributions (20%) Post-1986 depreciation adjustment
Noncash contributions (60%) See the Partoars Adjusted gain or toss, ‘See the Partner's
Noncash contributions (40%) {structions Depletion (other than oil & gas) Instructions and,
eagia gain msopery to» 4 ll, gas, & geothermal ~ gross income the Instructions for
organiza il, gas, & geothermal— deductions Form 6251
Capitat gain oper (20%) Other AMT items
Contributions (100%) I 18 ‘Tax-exempt income and nondeductible expenses
Investment interest expense. Form 4982, line 1 A Tax-exempt interest income Form 1099, line 8b
Deductions — royalty incorne Schedule E, line 18 B Other tax-exempt income See the Partner's instructions
Section 59(e)(2) expenditures ‘See the Partner's instructions C Nondeductible expenses ‘See the Partner's Instructions
Deductions — portfolio (2% floor) ‘Schedule A, line 23 19 Distributions,
Schedule A, fine 28
Deductions — portfatio (ther)
‘Amounts paid for medical
insurance
Schotula A, line 1 oF
Form 1040,
A Cash and marketable securities
B Distribution subject to section 737 + See Partner's
Instructions
Educational assistance benefits ‘See the Partner's Instructions © otter property
Form 2441, line 14 20 Other Information
Dependent care benefits Investment income Form 4952, lina da
reproductive patio expenses See the Partner's Instructions Investment expenses Form 4952, fine 5
Comme lization deduction from ‘See Form 8582 Instructions Fuel tax credit information Form 4136
real rook estate avis
Pensions and IRAS Soe the Partner's Instructions Quatified rehabilitation expenditures (other than ‘See the Partner's Instructions
Reforestation expense deduction ‘See the Partners Instructions rental real esiate
‘See Form 8963 Instructions Basis of energy properly ‘See the Partners Instructions
Domestic production activities information Recapture of low-income housing credit (section
Qualified production activities income Form 8903, lina 7 Form 8611, tine &
Employer's W-2 wages ‘orm 8903, line 15, Redapture of low-income housing credit (other) Form 8611, line &
w Other deductions Seo the Pattner's Instructions Recaplure of investment credit Form 4285
14. Self-employment earnings (loss) Recaplure of other credits See the Partners Instructians
Note. have a section 179 deduction or any partner-evel deductions, See the Lookt-back interest — completed
Parinar’sff Instructions before completing Sched ong-term contracts See Farm 8697
A. Wet earnings (loss) from self-employment Schedule SE, Section A or B Laok-back interest income
B Gross farming or fishing income See the Partner's Instructions forecast method See Form 8866
See the Partner's Instructions Disposition of iprapety wih
© Gross non-farm income 179 deduct
15. credits recaps of section 179 deduction
{owincome housingcredit Getion 2636)) ‘Soo the Partner's instructions Interest expense far corporate partners
fram re: Section 453(1)(3) information
income reno ret then fam See the Partner's Instructions
pre-2008 bul Section 453A(c) information
Lowincome Po, kei (eatin 42096) Form 8386, line 11 Section 1260(b) information ‘See the Partner's
from post-2007 Interest allocable to production expenditures Instructions
Low-income rans red ote) fom Form 8886, line 11 CCF nonqualiied withdrawals
post-2007 buldi
Quaiied ehabiiaton expendlures (ena Depletion information — oll and gas
real estate) See the Pariner's Amortization of reforestation costs
Other rental real estate credits instructions Unrelated business taxable income
‘Other rental credits, W Precontbution gala (oss)
Undistributed capital gains credit Farm 1040, fine 70; check box a X Section 1086) information
Alcohol and cellulosic biofuel fuels credit Form 6478, line 7
J) Work opportunity credit Form 6884, tine 3 Y Other information |
PYPAOSI2 08/14/09 Schedule K-1 (Form 1065) 2009
Index No. 650284/13 Year: 2013
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
DIMENSION TRADING PARTNERS,
Plaintiff,
— against —
JAMIE F. LISSETTE and HAMMERSTONE NV, INC.,
Defendants.
AFFIDAVIT OF GARY SOFEN
SMITH VALLIERE PLLC
Attorneys for: Plaintiff
Office Address & Tel. No.:
75 Rockefeller Plaza
21st Floor
New York, New York 10019
(212) 755-5200
Pursuant to 22 NYCRR 130-1.1(a), the undersigned, an attorney admitted to practice in the courts of the New York State, certifies
that, upon information and belief and reasonable inquiry, (1) the contentions contained in the annexed documents are not
frivolous and that (2) if the annexed documents is an initiating pleading, (i) the matter was not obtained through illegal conduct,
or that if it was, the attorney or other persons responsible for the illegal conduct are not participating in the matter or sharing in
any fee earned therefrom and that (ii) if the matter involves potential clajyis for persdhal injury or wrongful death, the matter
was not obtained in violation of 22 NYCRR 1200.41(a).
Dated:_March Ig OL Signature:
Print Signer’s Name:
Service of a copy of the within is hereby admitted.
Dated:
Attorney(s) for
Preview
INDEX NO. 650284/2013 (FILED: NEW YORK COUNTY CLERK 0371772013) NYSCEF DOC. NO. 11 RECEIVED NYSCEF: 03/17/2013 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK nee nen enn men ene nnnn nnn nen ennnnenenenennne DIMENSION TRADING PARTNERS, LLC, Index No. 650284/13 Plaintiff, Hon. Shlomo S. Hagler -against- Part 17 JAMIE F. LISSETTE and HAMMERSTONE NV, INC., AFFIDAVIT OF GARY SOFEN Defendants. een ee ene nnn nnnnnnnnenenennen STATE OF FLORIDA ) ) ss. COUNTY OF ST. LUCIE ) GARY SOFEN, being duly sworn, deposes and says: 1 Iam the managing member of Dimension Trading Partners, LLC (“DTP”), Plaintiff in this action. I am personally familiar with the facts set forth herein and submit this affidavit in further support of DTP’s motion for summary judgment on the promissory note executed by Defendants and in opposition to Defendants’ cross-motion to compel arbitration. 2. DTP has never been a broker dealer, a member of FINRA or any other exchange. 4 3 DTP never had any ownership interest in Dimension Trading Group, LLC (“DTG”); nor did DTG have any ownership interest in DTP. They are completely separate corporate entities with their own operations. 4 Ralph A. Daiuto, Jr. has never been an officer, executive or member of DTP. 5 DTP was not merged into World Trade Financial Group (“WTFG”) and has no relationship with WTFG. 6 DTP’s action to collect on the promissory note executed by Defendant Jaime Lissette (“Lissette”) and Hammerstone NV, Inc. (“Hammerstone’’) is part of the winding up of DTP. 7 Hammerstone was a member of DTP and had substantial trading losses in 2008 and 2009. DTP issued K-1s to Hammerstone reflecting those losses. Copies of those K-1s are attached hereto as Exhibit A. 8 Upon information and belief, Lissette was the sole owner or held the controlling interest in Hammerstone and made trading decisions on behalf of Hammerstone at the time it incurred those trading losses. 9 DTP never had an arrangement with Lissette “to stake [him] the $100,000 in trading funds in return for 60% of any profits” as described in his affidavit. 10. DTP never gave Lissette a “user name and password” in 2010 as he claims in his affidavit. ll. Upon information and belief, Lissette traded at Dimension Trading Group, LLC (“DTG”), a member firm of the Chicago Board Stock Exchange, in 2010. y Gary Sofe Swom to before me this 15th day of March, 2013. vi rotary Public 4 EN TIERNEi 569 wy CORNS SIO‘ApiilN 4 20,EE 178 2016 ors wae ube dene EXPIRES: NB sented EXHIBIT A 651108 (Cleinat k-1 [amended k-1 OMe No. 1545-0099 Schedule K-1 2008 Pariner's Share of Current Year Income, (Form 1065) For calendar year 2008, or tax Deductions, Credits, and Other Items Department of the Treasury year beginning + 2008 1 Ordinary business income (loss) }15 | Credits Internal Revenue Service ending oO. ~41--~--~--------- 2 Net rental real estale income (loss) Partner's Share of Income, Deductions, Credits, etc. > See separate instructions. 3 Other net rental income (loss) 16 | Foreign transactions -4+-------------- Information About the Partnership 4 Guaranteed payments A Partnership's employer identification number 11-3820347 5 Interest ingome Parinership's name, address, city, state, and ZIP code Dimension Trading Partners 6aj Ordinary dividends 1816 Wildcat Cove Drive -4-------------- Fort Pierce, FL 34949 6b] Qualified dividends -4-------------- IRS Center where partnership filed return 7 | Royalties Ogden UT & | Net short-term capital gain (loss) DB [[[check if this is a publicly traded partnership (PTP) al Net long-term capital gain (loss) 7 Alternative minimum tax (AMT) items -41-------------- Information About the Partner 9b] Collectibles (28%) gain (loss) E Partner's identifying number 9c} Unrecaptured section 1250 gain 20-2689613 Partner's name, address, city, state, and ZIP code 110 | Net section 1231 gain (loss) 18 Tax-exempt income and Hammerstone NV, Inc nondeductible expenses 650 Fifth Avenue 1 Other income (loss) Suite 600 FE *STMT New York, N¥ 10019 Lt .------------ LI cenerat partner or LLC Limited partner or other member-manager member [x] domestic partner (Foreign partner 19 Distributions 12 | Section 179 deduction 70,000. What type of entity is this partner? Corporation 13 | Other deductions Partner's share of profit, loss, and capital (see instructions): Other information jeginning nding Profit 0.00000 & 0.00000 & Loss 0.00000 % 0.00000 $% Capital 9.00000 & 0.00000 & -4-------------- Partner's share of liabilities at year end: 14 | Self-employment earnings (loss) Nonrecourse aa---- +--+ --- -j-------------- Qualified nonrecourse financing Recourse *See attached statement for additional information. Partner's capital account analysis: FE Q Beginning capital account $ R Capital contributed during the year $. 317,000.J1 Current year increase (decrease) . $. -154,033.)s Withdrawals and distributions 3 70,000. u Ending capital account $____ 92, 967.]é BAA A Tax basis Other (explain) [1caar Lisection 704(b) book For Paperwork Reduction Act Notice, see Instructions for Form 1065. LC Schedule K-1 (Form 1065) 2008 PTPAOS12, 12/75/08 Schedule K-1 (Form 1065) 2008 Hammerstone NV, Inc 11-3820347 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040, For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your,income tax return. Ordinary business income (loss) Determine whether the income (loss) is passive for nonpassive and enter on your relurn as follows. Code y Report on Report on J Work opportunity credit Form 5884, line 3 ‘See the Partner's Instructions K Disabled. access credit See the Partner instructions Passive loss L Empéwerment zone and renewal community Passive income ‘Schedule E, line 28, column (9) ‘employment creidt Form 8844, line 3 Nonpassive toss ‘Schedule E, line 28, column (hi) mM Credif for increasing research activties ‘See the Partner's instwuctions Nonpassive income Schedule €, line 28, column () N Credit for employer social security and Net rental reat estate income (103s) See the Partner's Instructions Medicare texes Form 8846, ine 5 Other net rental income (105s) Oo Backup withholding Form 1049, line 62 Net income Schedule E, 28, column (a) P Other credits See the Partners Instructions Net toss. See the Partner's instructions 16 Foreign transactions 4 Guaranteed payments, Schedule E, line 28, column () A. Name of court oF US. possession 5 Interest income Form 1040, line 83 B Gross income from all sources Form 1116, Part | - 6a Ordinary dividends Form 1040, tine 9a C Gross income sourced at partner level 6 Qualified dividends Form 1040, line 9b Foreign’ gross income sourced at partnership level 7 Royalties Schedule E, line 4 D Passive category 8 Net short-term capital qain (loss) ‘Schedule D, tine 5, column (f) E General category Form 1116, Part 1 ‘Qa Net iong-term capital gt oss) ‘Schedule D, line 12, column (D F other ‘9b Collectibles 28%) aui (loss) 28% Rate Gain Worksheet, line Deductions allocated and apportioned at partner level 4@ (Schedule O Instructions) G Interest expense Form 1116, Part | 9c Unrecaptured section 1250 gain ‘See the Partner's instructions H other Form 1116, Part f 10 Net section 1231 gain (loss) ‘See the Partner's Instructions Deductions allocated and apportioned at partnership level to 11 other income (loss} foreign source incom Code 1 Passive category A Other portfatio income (oss) ‘See the Partner’s Instructions J Generat category Form 1116, Patt | B Involuntary conversions See the Partner's instructions K other c Section 1256 contracts and straddles Form 6781, tine1 Other information D Mining exploration costs recapture See Pub 535 Total foreign taxes paid Form 1116, Part tl E Cancellation of debt Form 1040, line 21 of Form 982 Total foreign taxes accrued Form 1116, Part t F Other income (loss) ‘See the Partner's Instructions Reduction in taxes available for credit Form 1116, fine 12 12 Section 179 deduction ‘Seo the Partner's instructions Foreign trading gross receipts Form 8873, 13 Other deductions Exlraterritorial income exclusion Form 8873 A Cash contributions 60%) ‘ther fo a transactions ‘See the Partner's Instructions Cash contributions (20%) 7 ‘Alternative minimum tax (AMT) items Noncash contributions (50%) ‘See the Partner's, A Post-1986 depreciation adjustment Nancash contributions (20%) Instructions: B Adjusted gain or loss ‘See the Partner's Capital gain property to a 50% C Depletion (other than oil & ges) Instructions and organization D Olt gas. & geothermal — gross income the Instructions for Capital gain property (20%) E Oit-gas, & geothermal— deductions Form 6251 Contributions (100%) F Other AMT items Investment interest expense Form 4952, tine 1 18 Tax-oxempt income and nondeductible expenses Deductions — royally income Schedule E, lina 18 A. Tax-exeriipt interest income Form 1040, line 8b Section 59(e)(2) expenditures ‘See the Partner's Instructions B other tax-exempt income ‘See the Partner's Instructions Deductions ~ portfolio (2% floor) ‘Schedule A, line 23 © Nondeductible expenses ‘See the Partner's Instructions Deductions — portfolio (other) Schedule A, line 28 9 Distributions: } Amounts paid for medical Schedule A, line 1 or A Cash and marketable securities: insurane: Form 1049, tine Educational assistance benefits ‘See the Partners Instructions B other property ‘See Partner's lastructions Dependent care benefits Form 2441, line 14 C Distribution subject to section 737 reproductive period expenses ‘See the Partners Instructions Other information Commercial revitalization deduction from Investment income Form 4952, line 4a rental real estate activities See Form 8582 Instructions investment expenses Form 4952, tine § Pensions and IRAS See the Partner's instructions Fuel tax credit information Form 4135 s Reforestation expense deduction See the Partner's Instructions Qualified rehat tation exoenditures (other than See the Parine’s Instructions T Domestic production activities information ‘See Form 8903 Instructions rental reat estate) Form 8903, line 7 Basis of energy property See the Partner's Instructions U Qualified production activities income facaplure af low-income nousing creat (section V Employer's W-2 wages Form 8903, tine 15 Form 8611, lineB W Other deductions See the Partner's {nstructions Recapture of low-income housing credit (other) Form 8611, lineB 414 Seitomployment exrings Goss) Recapture of investment credit Form 4255 Hote. ff you have a section 179 deduction or any partner-level deductions, see the Rocapture of other credits See the Parine’s Instructions Parties ‘Instructions before completing Schedul Look back interest — completed ‘Net earnings (loss) from ‘Schedule SE, Section A or 8 long-term contracls See Form 8697 self-employment Look-tiack interest — income B Gross tarming or fishing income See the Partner's Insteuctions forecast method ‘See Form 8866 C Gross non-farm income See the Pariner’s Instructions Dispositions of property with 15 Creits section 179 deductions A Low-income housing credit (Section 42)(5)) See the Partner's Instructions Racapture of section 179 deduction from pre-2008 nuldings Interest expense for corporate partners B Low-income fi creda (other) fram ‘See the Partnar's Instructions Section 453()() information ‘pre-2008 buildings Settion 453A(c) information c Low-income housing credit (Section 42¢)(5)) Form 8586, line 11 from post-2007 buildings Section 1260(b) information ‘See the Partner's Instructions D Low-income housing credit (other) from Form 8586, line 11 Interest allocable to production expenditures, ‘post-2007 buildings CCF nonqualified withdrawals E realQualified rehabilitation expenditures (rental Depletion information — oil and gas estate) ‘See the Partner's F ‘Other rental real estate credits, Instructions u Amortization of reforestation costs G Other rental credits V_ Unrelated business taxable income H Ungisteibuted capitat gars credit Form 1040, tine 68; check box a W Precontribution gain (oss) 1 aicohot and cellulosic biofuel fvels credit Form 6478, tine 9 X Other information PTPADSIZ yansio, Schedule K-1 (Form 1065) 2008 651109 C1Final k-1 ‘ [amended K-1 OMB No. 1545-0099 Schedule K-1 2009 Partner's Share of Current Year Income, (Form 1065) For calendar year 2009, or ta Deductions, Credits, and Other Items Department of the Treasury year beginning 2008 1 Ordinary business income (loss) ]15_ | Credits Intemal Revenue Service ending . 0.|0 2 ‘Net rental real estate income (loss) Partner's Share of Income, Deductions, Credits, etc. > See separate instructions. 3 Other net rental income (loss) 16 | Foreign transactions i ~4{------- Information About the Partnership 4 Guaranteed: payments A Partnership's employer identification number 11-3820347 5 interest income B Partnership's name, address, city, state, and ZIP code -------- ---- Dimension Trading Partners 6a| Ordinary dividends 1816 Wildcat Cove Drive Fort Pierce, FL 34949 6b} Qualified dividends w------------- IRS Center where partnership filed return 7 | Royalties Ogden, UT (check if this is a publicly traded partnership (PTP) 8 | Net short-term capital gain (loss) o information About the Partner al Net long-term capital gain (loss) |17 Alternative minimum tax (AMT) items - E Partner's identifying number 9bj Collectibles (28%) gain (loss) 20-2689613 F Partner's name, address, city, slate, and ZIP code 9¢| Unrecaptured section 1250 gain Hammerstone NV, Ine 650 Fifth Avenue HO | Net section 1231 gain (loss) 18 Tax-exempt income and Suite 600 nondeductible expenses New York, N¥_ 10019 W1 Other income (loss) L. ------ -----| LJ Genera! partner or LLC Ex] Limited partner or other =127, 967. member-manager LLC member |B4 LL ------ aa-He [K] Domestic partner [Foreign partner pot. __-__--------- What type of entity is this partner? Corporation 19 Distributions Partner's share of profit, loss, and capilal (see instructions): 12 | Section 179 deduction ----- ------ Beginning Ending Profit 0.00000 & 0.00000 {13 | Other deductions J. f.--_----------- 20 Other information Loss, 0.00000 % 0.00000 % Capital 0.00000 % 0.00000 % ~-------------- ----------- Partner's share of liabilities at year end: Nonrecourse 8. -------------- Qualified nonrecourse financing § 14 | Self-employment earnings (loss) Recourse § | .{.____----------}-4-------------- Partner's capital account analysis: Beginning capital account $___92, 967, *See attached statement for additional information. Capital contributed during the year $ 35,000. Current year increase (decrease) : -127, 967. Withdrawals and distributions . . Ending capital account $ Ei Tax basis ‘Other (explain) (caae Lsection 704(0) book Did the partner contribute property with a built-in gain or loss? Dyes No if-Yes", altach statement (see instructions) BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 Form 1065) 2009 PTPAOSI2 08/14/09 Schedule K-1 (Form 1065) 2009 _Hammerstone NV, Inc 11-3820347 Page 2 reporting This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting iniomiation for partners who file Form 1040, For detailed and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (oss}. Determine whether the income (oss) is passive Code". Report on ‘or nonpassive and enter on your Feturn as ‘ol Disabled access credit See the Partner's instructions Report on ‘See the Partner's Instructions Empowerment zone and renewal community Form 8844, line 3 Passive loss ‘emplayment creidt Passive income ScheduleE, line 28, column (9) Credit for increasing research actives ‘See tha Partner's Instructions Nonpassive loss Schedule E, fine 28, column (h) Credit for employer social security and Nonpassive income Schedule €, line 28, column @) re Form 8846, line S Net rental real estate income (105s) ‘See the Partner's Instructions, Backup Withholding Form 1069, fine 61 Other met rental income (oss) Other credits See the Partner's Instructions Net income Schedule E, 28, column (@) 16 Foreign transactions 4 Net loss See the Partner's Instructions AL Name of country of U.S. possession 4 Gu snteed payments ScheduleE, fine 28, column () B Gross income from all sources Form 1116, Part| ‘5 interest income Form 1040, fine 8 CG Gross income sourced at partner level Ga Ordinary dividends Form 1040, tine 9a Foreign gross income sourced at partnership level 6b Qualified dividends Form 1040, line 9b D Passive category 7 Royalties Schedule E, line 4 E General category Form 1116, Part| 8 Net short-term capital gain (loss) ‘Schedule O, line 5, column (1) F other 9a Net long-term caj I gain (loss) ‘Schedule D, line 12, column () Deductions allocated and apportioned at partner level 9b Collectibles (28%) gain Gass) 28% Rate Gain Worksheet, tine G interest expense Form 1116, Part| 4 (Schedule D Instructions) H other Form 1 16, Pa 9¢ Unrecaptured section 1250 4 See the Partner's Instructions ‘See the Pariner’s instructions Deductions allocated and apportioned at partnership level to 10 Net section 1231 gain (loss) foreign source income 11 Other income Goss) 1 Passive category Code J General category Form 1116, Patt| A. Other portiotio income (loss) ‘See the Partners Instructions K other B involuntary conversions See the Partner's Instructions Other information Form 1116, Part t © Section 1256 contracts and straddles Form 6781, line1 L. Total foreign taxes paid D. Mining exploration costs recapture ‘See Pub 535 M1 Totat foreign taxes accrued Form 1116, Patt ft E Cancetiation of devt Form 1049, fine 21 or Forrn 982 NN. Reduction in taxes available for credit Form 1116, line 12 F other income (oss) ‘See the Pariner’s Instructions O Foreign trading gross receipts, Form 8873 12 Section 179 deduction ‘See the Partner's Instructions P_ Extraterritosial income exclusion Form 8873 13 Other deductions Q Other foreign transactions See the Partner's Instructions ‘Cash contributions (50%) Alternative minimum tax (ANT) items Cash contributions (20%) Post-1986 depreciation adjustment Noncash contributions (60%) See the Partoars Adjusted gain or toss, ‘See the Partner's Noncash contributions (40%) {structions Depletion (other than oil & gas) Instructions and, eagia gain msopery to» 4 ll, gas, & geothermal ~ gross income the Instructions for organiza il, gas, & geothermal— deductions Form 6251 Capitat gain oper (20%) Other AMT items Contributions (100%) I 18 ‘Tax-exempt income and nondeductible expenses Investment interest expense. Form 4982, line 1 A Tax-exempt interest income Form 1099, line 8b Deductions — royalty incorne Schedule E, line 18 B Other tax-exempt income See the Partner's instructions Section 59(e)(2) expenditures ‘See the Partner's instructions C Nondeductible expenses ‘See the Partner's Instructions Deductions — portfolio (2% floor) ‘Schedule A, line 23 19 Distributions, Schedule A, fine 28 Deductions — portfatio (ther) ‘Amounts paid for medical insurance Schotula A, line 1 oF Form 1040, A Cash and marketable securities B Distribution subject to section 737 + See Partner's Instructions Educational assistance benefits ‘See the Partner's Instructions © otter property Form 2441, line 14 20 Other Information Dependent care benefits Investment income Form 4952, lina da reproductive patio expenses See the Partner's Instructions Investment expenses Form 4952, fine 5 Comme lization deduction from ‘See Form 8582 Instructions Fuel tax credit information Form 4136 real rook estate avis Pensions and IRAS Soe the Partner's Instructions Quatified rehabilitation expenditures (other than ‘See the Partner's Instructions Reforestation expense deduction ‘See the Partners Instructions rental real esiate ‘See Form 8963 Instructions Basis of energy properly ‘See the Partners Instructions Domestic production activities information Recapture of low-income housing credit (section Qualified production activities income Form 8903, lina 7 Form 8611, tine & Employer's W-2 wages ‘orm 8903, line 15, Redapture of low-income housing credit (other) Form 8611, line & w Other deductions Seo the Pattner's Instructions Recaplure of investment credit Form 4285 14. Self-employment earnings (loss) Recaplure of other credits See the Partners Instructians Note. have a section 179 deduction or any partner-evel deductions, See the Lookt-back interest — completed Parinar’sff Instructions before completing Sched ong-term contracts See Farm 8697 A. Wet earnings (loss) from self-employment Schedule SE, Section A or B Laok-back interest income B Gross farming or fishing income See the Partner's Instructions forecast method See Form 8866 See the Partner's Instructions Disposition of iprapety wih © Gross non-farm income 179 deduct 15. credits recaps of section 179 deduction {owincome housingcredit Getion 2636)) ‘Soo the Partner's instructions Interest expense far corporate partners fram re: Section 453(1)(3) information income reno ret then fam See the Partner's Instructions pre-2008 bul Section 453A(c) information Lowincome Po, kei (eatin 42096) Form 8386, line 11 Section 1260(b) information ‘See the Partner's from post-2007 Interest allocable to production expenditures Instructions Low-income rans red ote) fom Form 8886, line 11 CCF nonqualiied withdrawals post-2007 buldi Quaiied ehabiiaton expendlures (ena Depletion information — oll and gas real estate) See the Pariner's Amortization of reforestation costs Other rental real estate credits instructions Unrelated business taxable income ‘Other rental credits, W Precontbution gala (oss) Undistributed capital gains credit Farm 1040, fine 70; check box a X Section 1086) information Alcohol and cellulosic biofuel fuels credit Form 6478, line 7 J) Work opportunity credit Form 6884, tine 3 Y Other information | PYPAOSI2 08/14/09 Schedule K-1 (Form 1065) 2009 Index No. 650284/13 Year: 2013 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK DIMENSION TRADING PARTNERS, Plaintiff, — against — JAMIE F. LISSETTE and HAMMERSTONE NV, INC., Defendants. AFFIDAVIT OF GARY SOFEN SMITH VALLIERE PLLC Attorneys for: Plaintiff Office Address & Tel. No.: 75 Rockefeller Plaza 21st Floor New York, New York 10019 (212) 755-5200 Pursuant to 22 NYCRR 130-1.1(a), the undersigned, an attorney admitted to practice in the courts of the New York State, certifies that, upon information and belief and reasonable inquiry, (1) the contentions contained in the annexed documents are not frivolous and that (2) if the annexed documents is an initiating pleading, (i) the matter was not obtained through illegal conduct, or that if it was, the attorney or other persons responsible for the illegal conduct are not participating in the matter or sharing in any fee earned therefrom and that (ii) if the matter involves potential clajyis for persdhal injury or wrongful death, the matter was not obtained in violation of 22 NYCRR 1200.41(a). Dated:_March Ig OL Signature: Print Signer’s Name: Service of a copy of the within is hereby admitted. Dated: Attorney(s) for