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Docket #0005 Date Filed: 11/9/2010
DEWEY & LEBOEUF LLP
1301 Avenue of the Americas
New York, New York 10019
Telephone: 212.259.8000
Facsimile: 212.259.6333
Peter A. Ivanick, Esq.
Martin J. Bienenstock, Esq.
Lawrence M. Hill, Esq.
Proposed Attorneys for the Debtor and Debtor in Possession
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
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Chapter 11 Case No.
:
In re
:
:
10-15973 (SCC)
:
AMBAC FINANCIAL GROUP, INC.,
:
:
x
Debtor.
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:
Plaintiff,
:
- against :
:
UNITED STATES OF AMERICA,
:
:
Defendant.
:
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AMBAC FINANCIAL GROUP, INC.,
Adversary Proceeding No. 10_________
DECLARATION OF THOMAS J. STASKOWSKI IN SUPPORT OF DEBTOR’S
REQUEST FOR DECLARATORY JUDGMENT AND INJUNCTIVE RELIEF
I, Thomas J. Staskowski, hereby declare that the following is true to the best of my
knowledge, information, and belief:
1.
I am a First Vice President of Ambac Financial Group, Inc. (“AFG” or the
“Debtor”), the debtor and debtor in possession in the above-captioned chapter 11 case. I
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1015973101110000000000005
submit this declaration in support of the Debtor’s request for declaratory judgment and
injunctive relief in the above-captioned Adversary Proceeding. The statements made
herein are based on my personal knowledge. I am above 18 years of age, am competent
to testify, and am authorized to submit this declaration (the “Declaration”) on behalf of
the Debtor.
2.
In my position as First Vice President, my responsibilities include serving
as liaison to the field agents from the Internal Revenue Service (“IRS”) assigned to audit
AFG and its non-debtor subsidiary affiliates (collectively, “Ambac”).
3.
Mr. Pat Conte is the IRS field agent assigned to audit the approximately
$700 million in refunds issued to Ambac for the carryback of losses incurred in tax years
2007 and 2008 (the “Tax Refunds”). On several occasions between July 8, 2009 and
November 2, 2010, I have spoken with Mr. Conte regarding Ambac and have provided
him with information he requested.
4.
Mr. Conte informed me at the end of August 2010 that a Financial Product
Examiner would be assigned to Ambac’s refund audit. On September 30, 2010, I met
with IRS field agent Sandy Criscione, the Financial Product Examiner assigned, for the
first time.
5.
On October 28, 2010, Mr. Criscione met with me and provided me with an
information document request (an “IDR”) requesting information concerning the Tax
Refunds (“IDR AFG-FP-1”). During Mr. Criscione’s visit, he told me IRS attorneys in
Connecticut and Washington D.C. held a conference call during which they questioned
whether the Tax Refunds should have been issued and discussed recapturing the Tax
Refunds.
6.
On November 1, 2010, I phoned Mr. Criscione’s office to follow-up with
him regarding our October 28, 2010 conversation. Mr. Criscione was unavailable to take
my call, and I left a message. As of the date of execution of this declaration, Mr.
Criscione has not returned my call.
7.
On November 2, 2010, I spoke with Mr. Conte, and I inquired as to the
source of the IDR. Mr. Conte informed me that Mr. Criscione was taking orders from his
superiors within the IRS.
8.
The due date of IDR AFG-FP-1 is November 29, 2010. I have scheduled
a meeting with Mr. Criscione for December 1, 2010.