UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF PENNSYLVANIA 

LEXINGTON INSURANCE COMPANY, 

Plaintiff,

-againstDAVID FORREST and T. BEAUCLERC ROGERS IV, 

Defendants.

Civil Action No. 02-CV-4435 

(Hon. Anita B. Brody) 

LEXINGTON INSURANCE COMPANY’S INITIAL 

DISCLOSURES UNDER RULE 26(a)(1) OF THE 

FEDERAL RULES OF CIVIL PROCEDURE 

Pursuant to Rule 26(a)(1) of the Federal Rules of Civil Procedure, Lexington Insurance Company (“Lexington”), the plaintiff in this action, makes the following Initial Disclosures 

based upon information currently available to it: 

I. 

INDIVIDUALS WHO MAY HAVE DISCOVERABLE 

INFORMATION UNDER RULE 26(a)(1)(A) 

The individuals set forth below are likely to have discoverable information that Lexington may use to prove its claims in this action. 

Name and Affiliation Last Known Address Subject of Information 

BRACE, Robert 

former President of 

AIG Entertainment 

c/o Cahill Gordon & Reindel LLP Lexington’s underwriting of the 

HF4 contract and, specifically, 

the collateral agreement associated therewith 

BROAD, Victor 

former underwriter for 

Sphere Drake Insurance 

Company 

 Yuranderee 

2 Oakland Way 

Tadworth, Surrey 

England 

Underwriting of The New Professionals 

CANDELA, Michael 

former officer of 7.23 

Productions/New Beginnings Enterprises 

 1527 South Holt Avenue 

Los Angeles, CA 90035 

Operation of Flashpoint’s California operations 

Case 2:02-cv-04435-AB Document 47 Filed 09/02/2003 Page 1 of 11
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Name and Affiliation Last Known Address Subject of Information 

COLICHMAN, Paul 

Regent Entertainment 

 1401 Ocean Avenue, 

Suite 300 

Santa Monica CA 90401 

Regent allegations of complaint 

(sales estimates and diversions 

of funds); Regent aspects of 

HF6 

COUPE, David, Esq. 

Ince & Co. 

c/o Ince & Co. 

Knollys House 

11 Byward Street 

London EC3R 5EN 

England 

Negotiation of collateral agreements 

DAWSON, Gordon 

former broker at Lloyd 

Thompson 

 3 Rosehill Road 

London SW18 2NY 

England 

Placement of The New 

Professionals, It Had To Be 

You, and HF1, 2, 3, 4; content 

of misrepresentations; fraud 

DE LESPINOIS, Pierre 

Crest Films Ltd. 

 Crest Entertainment LLC

16661 Cumbria Verde Drive 

Pacific Palisades, CA 90272 

Allegations of the complaint 

concerning HF4 (Jules Verne) 

DROMGOOLE, June 

formerly of the BBC 

 Channel Four Television 

124 Horseferry Road 

London SW1P 2TX 

England 

Purported sale of Jules Verne

(HF4) to the BBC 

DRUMMOND BRADY, Mark 

broker at Lloyd Thompson 

c/o JLT Risk Solutions Ltd. 

6 Crutched Friars 

London EC23N 2PH 

England 

Placement of all Flashpoint risks 

DUNN, Neil 

formerly of Talisman 

Films Ltd. 

 5 Addison Place, 

London W11 4RJ 

England 

HF4 (Jules Verne) allegations of 

the complaint 

EMMA, Thomas 

Artist View Entertainment 

 12500 Riverside Drive 

Suite 20113 

North Hollywood, CA 91607 

Sales estimates re Romantic 

Moritz 

FAST, Adam 

Filmwave Entertainment 

 1828 Broadway 

Santa Monica, CA 90404 

Sales estimates re Award (HF3) 

FENTON, Douglas c/o Miller Ins. Services Ltd. 

5 Jewry Street 

London EC3N 2PJ 

England 

Placement of HF4, 5, 6 

FINK, Martin 

former head of Flashpoint’s California operations 

c/o Michelman & Robinson LLP

15760 Ventura Boulevard 

Suite 500 

Encino, California 91436 

Diversions of funds by Flashpoint; “The Building”; Flashpoint’s California operations; 

sales estimates; organization of 

the Flashpoint Enterprise 

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Name and Affiliation Last Known Address Subject of Information 

FORREST, David 

defendant and principal 

of the Flashpoint Enterprise 

c/o DuaneMorris LLP Factual allegations against both 

defendants 

FRIEDENN, Neva 

Award Entertainment 

 Award Entertainment 

1800 North Highland Ave. 

Suite 506 

Hollywood, CA 90128 

Matters related to Award (HF3) 

FRIES, Christopher 

Filmwave Entertainment 

 1828 Broadway 

Santa Monica, CA 90404 

Sales estimates re Award (HF3) 

GEORGE, Tony, Esq. 

Ince & Co. 

c/o Ince & Co. 

Knollys House 

11 Byward Street 

London EC3R 5EN 

England 

Negotiation of collateral agreements 

GROVE, Richard 

former president of 

Media Ventures International 

 1808 Chestnut Avenue 

Glenview, IL 60025 

Jules Verne (HF4) sales estimates 

GUILLOT, Jean-Michel 

former underwriter for 

Axa Réassurances 

 3 Rue de Fontenay 

92340 Bourg La Reine 

France 

Materiality of misrepresentations 

and omissions 

HARRIS, Mark 

Regent Entertainment 

 1401 Ocean Avenue, 

Suite 300 

Santa Monica CA 90401 

Regent sales estimates 

JACKSON, David 

Showcase Entertainment, Inc. 

 Warner Center 

21800 Oxnard Street 

Suite 150 

Woodland Hills, CA 91367 

Award (HF3) sales estimates 

JACKSON, Richard 

Talisman Films Ltd. 

 [tba] Sales estimates and other matters 

related to Jules Verne (HF4) 

JARCHOW, Steven 

Regent Entertainment 

 1401 Ocean Avenue, 

Suite 300 

Santa Monica CA 90401 

Regent allegations of complaint 

(sales estimates and diversions 

of funds); Regent aspects of 

HF6 

JESSEL, Ian 

formerly of Condor 

Communications LLC

 Condor Communications 

6671 Sunset Boulevard 

Hollywood, CA 90028 

Sales estimates on It Had To Be 

You 

KANANACK, Claude and 

Michael 

 Arthur Kananack & Assocs. 

12 Hunt Lane 

Weston, CT 06883 

Heirs of Arthur Kananack of 

AKA Movies; documents relating to sales estimates and related matters on HF6 

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Name and Affiliation Last Known Address Subject of Information 

KAPLAN, Neil 

producer of It Had To 

Be You 

 465 South Beverly Drive 

Third Floor 

Beverly Hills, CA 90212 

Sales estimates on It Had To Be 

You 

LAMPING, David 

The David Lamping 

Company 

 Ferry House 

South Stoke 

Oxon RG8 0JL 

England 

Sales estimates for The New Professionals 

LYWOOD, Rupert 

Matrix Securities Ltd. 

 Gossard House 

7-8 Savile Row 

London W1X 1AF 

England 

Matters related to Jules Verne 

(HF4) and The New Professionals 

MANN, Richard 

7.23 Productions/New 

Beginnings Enterprises 

 Richard Mann Group 

11210 Briarcliff Lane 

Studio City, CA 91604 

Allegations re Prosperity (HF5, 

6); background on earlier transactions; background on Flashpoint’s California operations 

MASLAK, Paul 

President of Award Entertainment 

 Award Entertainment 

1800 North Highland Ave. 

Suite 506 

Hollywood, CA 90128 

Matters related to Award (HF3) 

MITCHELL, Steven 

former underwriter for 

Lexington (AIG Entertainment) and HIH 

c/o Cahill Gordon & Reindel LLP Lexington’s underwriting of the 

HF4, 5, 6 contracts; HIH’s underwriting of Award and the 

other HF1, 2, 3 contracts 

MOORE, Ian 

Moore Management 

Services 

 Moore Management Services 

Third Floor 

45 Espianade 

St. Heller JE4 2YQ 

Jersey 

Structure of Flashpoint operations 

MOSES, Maurice 

Joint Administrator of 

Flashpoint (UK) 

 Numerica 

PO Box 2653 

66 Wigmore Street 

London W1A 3RT 

England 

Diversions of funds; source of 

documents and information re 

Flashpoint operations, film 

revenues, and similar matters 

MUNSON, Stanley, Esq. 

formerly of Tarlo Lyons 

 Websters Farm High Street 

Glinton 

Peterborough 

Cambridgeshire PE6 7LS 

England 

Drafting and negotiation of collateral agreements; control of 

Flashpoint’s expenditures and 

diversions of funds; organization of the Flashpoint Enterprise 

NEUHAUSER, Alice 

former Chief Operating 

Officer of New Beginnings Enterprises 

 8671 Wilshire Boulevard 

Suite 610 

Beverly Hills, CA 90211 

All aspects of Flashpoint’s California operations 

OULTON, Carolyn 

Talisman Films Ltd. 

 5 Addison Place, 

London W11 4RJ 

England 

Purported sale of Jules Verne

(HF4) to the BBC 

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Name and Affiliation Last Known Address Subject of Information 

PEACOCK, Keith 

former General Manager of Lexington’s 

London underwriting 

operation 

c/o Cahill Gordon & Reindel LLP Lexington’s underwriting of the 

HF4, 5, 6 contracts 

POLATO, Cecilia 

former underwriter for 

Kemper Re 

 unknown, but currently believed to reside in the United 

States 

Materiality of misrepresentations 

and omissions 

RACK, B.J. 

President, Motion Picture Bond Co. 

 1801 Ave. of the Stars 

Suite 1010 

Los Angeles, CA 90067 

Operation of Flashpoint’s California operations; Prosperity 

(HF5, HF6) issues 

RANSOHOFF, Steven Film Finance, Inc. 

9000 Sunset Boulevard 

Suite 1400 

Los Angeles, CA 90069 

Sales estimates on It Had To Be 

You 

RINGROSE, Marcus [tba] Materiality; underwriting of HF4 

ROGERS, T. Beauclerc, IV 

defendant and principal 

of Flashpoint Enterprise 

c/o Conrad O’Brien Gellman & 

Rohn, PC 

Factual allegations against both 

defendants 

RULE 30(b)(6) witness 

from Edgewood Productions 

 12500 Riverside Drive 

Suite 201-B 

North Hollywood, CA 91607 

or 

 Howe Centre, Unit 12B 

1 Scale Avenue 

Suite 90 

Rutland, VT 05701-4459 

Diversions of funds and related 

issues re HF6 

RULE 30(b)(6) witness 

from New City Productions 

 New City Productions 

1380 Burrard Street 

Vancouver, B.C. V6Z 2H3 

Canada 

Diversions of funds and related 

issues re HF6 

RULE 30(b)(6) witnesses 

from each of the organizations identified in 

the complaint 

 Allegations of the complaint relating to such organization 

SALMON, Peter 

formerly BBC Head of 

Independent Commissions 

 Still at the BBC, in a different 

position, and can presumably 

be reached there (London) 

Purported sale of Jules Verne

(HF4) to the BBC 

SARLUI, Helen 

formerly of Regent Entertainment 

 10540 Lindbrok Drive 

Los Angeles, CA 90024 

Regent sales estimates 

SHALCROSS, Alan [tba] Purported sale of Jules Verne

(HF4) to the BBC 

Case 2:02-cv-04435-AB Document 47 Filed 09/02/2003 Page 5 of 11
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Name and Affiliation Last Known Address Subject of Information 

SHAPIRO, Cara 

Award Entertainment 

 Warner Center 

21800 Oxnard Street 

Suite 150 

Woodland Hills, CA 91367 

Award (HF3) sales estimates 

TURNER, Neil 

former broker at Lloyd 

Thompson 

 The Garden Flat 

98 Fordwych Road 

West Hampstead 

London NW2 3TJ 

England 

Origins of Flashpoint insurancebased film finance techniques; 

sales estimates in general 

WIGNALL, Andrew 

former director of 

Flashpoint Ltd. 

 Moore Management Services 

Third Floor 

45 Espianade 

St. Heller JE4 2YQ 

Jersey 

Structure of Flashpoint operations 

WRIGHT, Susan 

former (?) Flashpoint 

executive 

 18 Wilson Close 

Willesborough 

Ashford 

Kent TW24 0HX 

England 

Diversions of funds; Flashpoint’s 

use of funds and accounting; 

representations made to Lexington and others 

Lexington’s investigation and discovery concerning this case is continuing. If additional information is obtained after the date of these Disclosures, Lexington will supplement 

these Disclosures pursuant to Rule 26(e) of the Federal Rules of Civil Procedure. 

II. 

DESCRIPTION OF DOCUMENTS BY CATEGORY 

AND LOCATION PURSUANT TO RULE 26(a)(1)(B) 

Lexington may use the following categories of documents to support its claims in 

this action. Identification of documents or categories of documents is not intended to, and does 

not, waive any privilege or other protection (including work product protection or similar protections under English law) inhering in such documents. A privilege log will be provided in connection with actual production. Documents relating solely to damages are identified in Section III below. 

1. Subject to slight redactions to eliminate material that Lexington is prohibited from 

disclosing by English law, the March 12, 2003 report of Andrew Maclay, a forensic accountant 

retained by Lexington in connection with its pursuit of creditors’ remedies against Flashpoint 

Case 2:02-cv-04435-AB Document 47 Filed 09/02/2003 Page 6 of 11
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(UK) and its defense of the recently settled UK litigation with respect to the HF4 and HF5 transactions. This report summarizes and deseribes certain aspects of defendants’ misappropriation of 

funds raised by Flashpoint. The redacted report is being filed as part of Lexington’s RICO Case 

Statement. 

2. Documents in the possession, custody, and control of Lexington that were produced by Lexington in the English proceedings. These documents can be produced either electronically (for the most part) or in hard copy. Arrangements for production of these documents 

in the desired format can be made through Cahill Gordon & Reindel LLP. 

3. Documents provided to Lexington’s solicitors in the English proceedings by the 

Flashpoint administrators (the equivalent of bankruptcy trustees in the United States). These 

documents, many of which exist in electronic format, can be provided to Defendants. Arrangements for production of these documents in the desired format can be made through Cahill 

Gordon & Reindel LLP. 

4. Documents produced by parties other than Lexington in the English proceedings. 

Such documents generally fall into two categories: 

(a) Documents that were produced voluntarily by third parties (and, to some 

extent, by parties) in the English proceedings and that, as a result, are not 

subject to any confidentiality orders or restrictions against disclosure and 

can be produced by Lexington in this action. These documents can be 

made available in electronic (in about 95% of the cases) or hard copy format. Documents were produced voluntarily to Lexington in the English 

proceedings by, among others, JLT Risk Solutions, Numerica (as administrator of Flashpoint UK), Martin Fink, Richard Grove, Neil Dunn, David 

Lamping, Media Ventures International, and Talisman Films Limited. Arrangements for production of some or all of these documents in the desired 

format can be made through Cahill Gordon & Reindel LLP. 

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(b) Documents that were produced under disclosure rules or orders in the 

English proceedings and, hence, are subject to the prohibition of Rule 

31.22 of the English Civil Procedure Rules against disclosure to third parties outside the litigation in which they were produced. Lexington is advised that Rule 31.22 has the force of law and prohibits production of 

these documents in this action absent an order by the English Court. 

Documents that fall into this category include certain documents produced 

by JLT, Regent International, and other parties to the English proceedings. 

Plaintiff will not object to any application filed by defendants, or either of 

them, with the English Court seeking production of some or all of such 

documents to the extent such documents would otherwise be discoverable 

in this proceeding. 

5. The several agreements implementing the settlement of the UK litigation. These 

documents are confidential by agreement. Lexington acknowledges its obligation to produce 

them, subject to entry of a suitable confidentiality order in this proceeding (which Lexington has 

sought). 

6. Witness statements and expert reports exchanged in the UK litigation. These fall 

into two categories: 

(a) Witness statements and expert reports proffered by parties other than Lexington are subject to the mandatory confidentiality requirements of Rule 

32.12 of the English Civil Procedure Rules and, Lexington is advised, cannot be produced by Lexington absent consent of the witness or an order of 

the English Court as set forth in paragraph 4(b) above. 

(b) Witness statements and expert reports proffered by Lexington are subject 

to the same restrictions, but Lexington will seek the consent of the witnesses to obviate, to the extent possible, the need for application to the 

Case 2:02-cv-04435-AB Document 47 Filed 09/02/2003 Page 8 of 11
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English Court as to these statements. To the extent, however, that the witness statements or expert reports refer to materials covered by Rule 31.22 

(the document confidentiality rule referred to above), leave of the English 

Court will be required in any event. Except for the Maclay Report, it is 

anticipated that substantially all of the expert reports make such extensive 

reference to materials covered by Rule 31.22 as not to be producible at all 

absent leave of Court. 

7. Transcripts of proceedings in open court in the UK proceedings. These are available through Cahill Gordon & Reindel LLP. 

Lexington’s investigation and discovery concerning this case is continuing and, if 

additional information is obtained after the date of these Disclosures, Lexington will supplement 

these Disclosures according to Rule 26(e) of the Federal Rules of Civil Procedure. 

III. 

COMPUTATION OF DAMAGES PURSUANT TO RULE 26(a)(1)(C) 

AND IDENTIFICATION OF ASSOCIATED DOCUMENTS 

All of the claims in the Complaint seek one or more of the following categories of 

damages. Pounds Sterling are converted to United States Dollars at £1 = $1.5712. 

1. Amount paid by Lexington to settle UK litigation, net of recoveries from other 

parties (including reinsurers): To be supplied upon entry of a confidentiality order. 

2. Costs of Lexington in defending the UK litigation or otherwise charged to the 

claims files for the HF4, 5, 6 policies, net of recoveries from other parties (including reinsurers): 

approximately $5.2 million, subject to revision based on ongoing review and audit of the claims 

file. 

3. Costs of Lexington associated with the Hollywood Funding claims not charged to 

the claims files and therefore not recovered from third parties (principally costs of Cahill 

Gordon & Reindel LLP and Freshfields Bruckhaus Derringer): 

Case 2:02-cv-04435-AB Document 47 Filed 09/02/2003 Page 9 of 11
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• Cahill Gordon & Reindel LLP: $489,877.17 less the portion of this amount 

(being reviewed but currently estimated to be less than $25,000) that relates specifically to this action and thus is recoverable only as attorneys’ fees in this action, plus certain additional amounts being researched. 

• Freshfields: £1.34 million = $2,105,408. 

• Denton Wilde Sapte: £121,334.61 = $190,640.94. 

• Norton Rose: to be supplied 

• Certain in-house and related costs, including time of management and in-house 

counsel, are being accumulated and will be supplied. 

4. Costs of Lexington in pursuing its creditors’ remedies against Flashpoint: 

£151,250.22 = $237,644.35. 

Documents supporting these calculations and/or estimates consist principally of 

(a) the agreements embodying the settlement of the UK litigation, (b) time and disbursement records (including, e.g.., charges for consultants) of the law firms involved in the various litigations and other matters identified above, (c) time records (to the extent available) of the employees of Lexington and/or American International Group, Inc. and its subsidiaries who handled 

various aspects of these proceedings on behalf of Lexington. Copies of these documents, subject 

to appropriate redactions to prevent disclosure of privileged or otherwise protected material, will 

be made available for inspection and copying. 

These initial computations are subject to continuing analysis and will be revised or 

supplemented if and as necessary according to Rule 26(e) of the Federal Rules of Civil Procedure, except for claims of interest, which should be assumed by the parties and which do not call 

for any specific supplementation. 

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IV. 

RELEVANT INSURANCE AGREEMENTS 

PURSUANT TO RULE 26(a)(1)(D) 

Not applicable. 

Dated: September 2, 2003 

MONTGOMERY, MCCRACKEN, WALKER & RHOADS LLP

By: /s/ Jeffrey R. Lerman

Jeffrey R. Lerman 

123 South Broad Street 

Philadelphia, Pennsylvania 19109 

(215) 772-1500 

CAHILL GORDON & REINDEL LLP

By: /s/ Edward P. Krugman Edward P. Krugman 

80 Pine Street 

New York, New York 10005 

(212) 701-3000 

Attorneys for Plaintiff 

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