Professional Qualifications
and Practical Experience
of Expert Witness
Raymond A. Beplat

Since my business commenced in January 2010 I have been engaged as the investment expert in two New York cases involving objections to Trust Accountings on behalf of the defendants, both banks operating as corporate trustee.  One of the cases has been settled and Trust Counsel will provide a reference in that case.  The other case is ongoing.

I have also been engaged by two individual trustees to provide an opinion as to their investment management conduct during their tenure as trustee.  I wrote affidavits for each trustee.  At present, one objection to a Trust Accounting has been settled while the other is still outstanding.

During my tenure at Bankers Trust I was deposed by the Income Guardian, Frederick Siegmund, as the portfolio manager of the Capital Income Fund in connection with a periodic Common Trust Fund Accounting.  The case was decided, unanimously, for Bankers Trust with Justice Asch writing the decision. The New York Law Journal reported, “The decision by the Appellate Division, First Department, is believed to be the first to provide an in-depth analysis of and affirmation for the standards and practices used by trustees in managing these investment vehicles that commingle funds from a large number of relatively small and separate trusts and estates.”  That decision was cited more recently by the Appellate Division in its review of the Seymour Knox Intermediate Accounting in 2011.

I have testified at trial twice.  First, in the case of the Donald A. McPherson Charitable Remainder Unitrust where Bankers Trust was corporate trustee.  The Charities Bureau of the Attorney General’s office brought the suit.  Before completion of the trial phase, the Attorney General withdrew the suit and all objections to the Trust Accounting.  Second, in Federal District Court in Pittsburgh I testified in Dunmire vs. Dunmire on behalf of the plaintiffs about the valuation of publicly held, but rarely traded common stock of community banks held in an estate.

I have managed both equity oriented and fixed income oriented common trust funds.  I started a Convertible Securities Fund at Bankers Trust in 1983 and later an International Equity Fund in 1989.  To my knowledge I was the first portfolio manager of a Common Trust Fund to utilize an index linked derivative security as part of an overall portfolio.

At U.S. Trust I was the only portfolio manager to opt for Unitrust status for a perpetual charitable trust in 2002 that allowed the charitable beneficiary to participate in the returns earned within the trust portfolio.

I lectured for several years at the National Graduate Trust School of the American Bankers Association on the topic of “Investment Performance Measurement.” 

I began my career at Citibank in 1968 where I traded corporate and Government Bonds on behalf of pension funds.  In 1971 I transferred to the Institutional Investment Advisory area where I managed portfolios for eleemosynary institutions as well as captive insurance company portfolios and pension funds.  In 1976 I became the administrative head of the Investment Research Department.  In 1978 I became the head of the Entrepreneurial Wealth Unit within the Private Bank.  I received my designation as a Chartered Financial Analyst in 1978.

During the 1980s, while working at Bankers Trust Company as the Chief Investment Officer in the Personal Trust Department, I served as Chairman of the Trust Investment committee, reviewing 2,500 individually invested Trusts each year.  I also served as Chairman of the Special Assets Group, which reviewed and valued all non-public investments held in Trust Accounts.  Throughout the 1980s I was a member of the Investment committee of the New York Bankers Association, becoming its chairman in 1989.  I organized and conducted a bi-annual Investment School for entry level employees of Member Banks from 1980 to 2006.

From 1992 to 1994 I served as the New York Bankers Association representative and conferred with the Legislative Advisory Committee, chaired by the Honorable C. Raymond Radigan, principally in the area of Modern Portfolio Theory and its place within the Prudent Investor Act which became effective in New York on January 1, 1995.  I designed and implemented the program necessary to comply with the Act at Bankers Trust.  Additionally, I spoke at several New York Bankers Association seminars around the State, explaining the investment implications of the Act.

From 1999 to 2001 I again served as the New York Bankers Association representative and conferred with the same Legislative Advisory Committee on the revisions to the Principal and Income Act, which became law in New York on January 1, 2002.  I was particularly active with regard to the determination of a Unitrust payout percentage.  In 1999 I authored a brief critique of The Total Return Unitrust concept which advocated a 5% payout for Trusts, indicating that rate was too high.  The Act subsequently made a 4% payout the “safe harbor” for New York Trusts.  In July 2001 I spoke at the National Graduate Trust School on the investment implications of the interplay between the two statutes.  Once again I spoke at seminars around New York State on this topic.

I have a Bachelor of Business Administration degree with a major in Finance from Ohio University and a Master of Business Administration degree with a major in Money and Banking and Investments from the Wharton Graduate School, University of Pennsylvania. 

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