EMAIL DETAILS

Adding Hunter to this email chain.

I started from scratch to make it simpler. Attached is a spreadsheet showing all income received by RSB on Hunter’s behalf for 2014 and 2015. In addition, I have listed all payments received by Hunter from RSB for the same time periods.

If you look at these numbers for 2015, Hunter received $1,021,946.56 in income that he has not yet accounted for for taxes purposes. This includes 10 Burisma payments of $83,333 a month and a distribution of $188,616.56 (that we had not discussed previously) from “Rosemont Realty” which were the proceeds from an equity interest that Hunter owned and which he “contributed to RSB”.

In 2015, RSB paid Hunter $414,479.00. As a result, Hunter is owed $607,467.56 from RSB.

However, of that $607,467.56, $277,775 was paid to Alex as a Finders Fee (I was told that Alex’s payments went through October 2015 not August as I originally thought). That money has already left RSB and gone to Alex. It would be impossible to have Alex return that money to RSB so that it could go back to Hunter and then have Hunter pay it directly. I did confirm with our personal accountant that those payments to Alex could be treated as an expense. Just not sure how to handle from a moving money around perspective.

If we deduct the Alex payments from what Hunter is owed, there should be $329,692.56 in RSB that could be paid to Hunter to make him whole. I am confirming that this money is in the account but we need to be prepared for the fact that it may not be.

So, based on all of the above and minus the payments made to Alex, Hunter should ultimately have $744,170.56 in reportable income that passed through RSB and he should be owed $329,692.56 from RSB which could be used to pay any taxes on this.

I am putting off 2014 for now but the numbers are included on the attached spreadsheet.

Let me know if you have any questions or I did anything erroneously.

Thanks,

Eric


Eric D. Schwerin
Rosemont Seneca Advisors, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
P Consider the environment before printing this email.

> On Apr 13, 2016, at 11:48 AM, Levinson, Kenneth S. <ken.levinson@FaegreBD.com> wrote:
>
> CONFIDENTIAL: ATTORNEY-CLIENT PRIVILEGE; ATTORNEY WORK-PRODUCT PRIVILEGE
>
> Eric, All
>
> Here are the cash “numbers” I referenced in our call this morning; these were derived (hopefully accurately) from Eric’s email of April 11th (his was time stamped at 4:50 PM EDT; we got it from George via email time stamped 5:23 PM that day).
>
> Given Eric’s description of the $51,835 “over draw” by Hunter in 2015, I have accounted for that amount below both as a “receipt” and as a subset of the “taxes” account/payout. However, as Eric clarified in our call today, the “taxes” hold back (whether constituting the gross amount of $245,498, or the “net” amount after “repayment” of the overdraw (the net being $193,663 per Eric’s email)) was NOT actually paid to the IRS by or on behalf of Hunter during 2015.
>
> Based on the calculations and assumptions shown below, it appears there is a “net” unexplained difference that I can’t identify (thus far) for 2015 of +$222,944. I’m hoping Eric’s more experienced and knowledgeable eyes will let us know what I am missing.
>
> In any case, here are my calculations from last night:
>
> Hunter receives/is owed:
> · $833,333 (10 months of Burisma tracked through RSB)
> · 51,835 (the “excess draw” taken out by Hunter from RSB)
> · 166,666 (2 months of Burisma payments to Owasco)
> $1,051,834
>
> Hunter pays out:
> · $361,168 (payoff/down of Devon’s loan to fund Hunter’s investment in BHR)
> · 222,224 (per Eric, which works out to 30%/mo, $27,778, paid to Alex for 8 months as Finder’s Fee)
> · 51,835 (repayment attributable to Hunter out of “taxes” Hold Back to repay “over draw” from RSB)
> · 193,663 (balance of “taxes” Hold Back of $245,498 remaining after repayment of “over draw” to RSB)
> $828,890
>
> 2015 cash payments attributable to Hunter not accounted for: $222,944 (the difference between $1,051,834 and $828,890)
>
> What am I missing?
>
> Thanks for any input from any of you, especially Eric…
>
> Best regards.
>
> Ken
>
>
> Kenneth S. Levinson
> Partner
> ken.levinson@FaegreBD.com <mailto:ken.levinson@FaegreBD.com> Download vCard <http://www.faegrebd.com/vcard/ken.levinson.vcf>
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>
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