Case 3:07-cv-02590-PJH Document 68-7 F led 04/13/2009 Page 10 of 33

TRADUCC] ON

CERTIFICACION SUPE RINTENDENCIA

DE VALORES - TITUlloS CLIENTES

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 Case 3:07-cv-02590-PJH Document 6 ge 11 of 33
(6A VttfflS®"

I OFFICIAL TRANSLATION NUMBER 10J0-2003

OF A DOCUMENT WRITTEN IN SPANISH THAT READS A S

I FOLLOWS -

I
I REPUBLIC OF COLOMBIA

BANKING SUPERINTENDENT

I BOGOTA, DC

I
LEGAL REPRESENTATIVE

STOCK EXCHANGE DEALER

AVEN1DA4 NNO 4n-30

SANTIAGO DE CAL1, VALLE

I SUBJECT

083001

I 331 INFORMATIVE CORRESPONDENCE

U
I 16 COLLECTIVE COMPLETION

Dear M r ^ ^ ^ ^ ^ H
I In relation to the communications we received with the numbers

I stated above, in which you ask for a certification to be sent to Ofac

and Sterling Financial Bank certifying that the securities currently in

escrow at the mentioned bank on the name of

Comisionista de Bolsa are not owned by such stock exchange dealer,

but are property of some of its clients with whom they have signed a

portfolio management agreement. In relation to that and also before

[DmaminervaS'E mitmmmmmis&mw'.'SBSWt.&z "-&?.•;«•• •• ?

All redactions made pursuant to exemptions

(b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)

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Redaction made pursuant to

exemptions (b)(6), (b)(7)(A), (b)(7)(C),
(b)(7)(F)

33
answering your request, we believe it is important to consider the
.14
following issues.
35
First of all, in accordance with article 7, law 45 of 1990, the stock
M>

37 exchange firms, members of the stock exchange have as exclusive

3» corporate purpose the development of brokerage agreement for

.V) securities purchase and sale, being able to pursue the activities
41)
mentioned below, with previous authorization by the Banking
41
Superintendent, in compliance with the requirements established for
42"
each particular case:
4.1

44
- To intervene in the securities underwriting to guarantee the total o

45 5 ~ part of the same, or to purchase such securities on its own account.

4fi r | - Carry out transactions on its own account with the purpose o
47
giving more stability to the prices of the market, diminish th
•IS
margins between the bid and asked prices of the same and in genera

to give liquidity to the market

- Assign loan with its own resources to finance securities purchase.

Carry on purchase-sale securities operations with the possibility o

re-purchase.

- Administer security portfolios of clients with the purpose to carr

out capital return collection and reinvest it according to the client'

instructions.

- Administer portfolios of third parties.

- Constitute and administer security funds with no legal entity.

- Furnish assistance in activities related to capital market

Other points similar to those mentioned above authorized by th

Banking Superintendent, to motivate the development of the capita

market.

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 Case 3:07-cv-02590-PJH Document 6

Due to tne suDject in question, next we will mention in detail the

ninrinii/ia/onnn
CA -14162669 r
ifogR 13 of 33

aspects related to securities administration.

In accordance with article 2.2.7.2 of resolution 400 year 1990, issued

by the Banking Superintendent, the stock exchange dealers are

authorized to:

a- Collect the returns or any other financial benefit from the

securities administered.

b- Collect the capital

c- Underwrite preferably the securities that correspond to a new

emission and

Id- Appraise the securities according to market prices

I Article 17, law 27 of 1990, assigns to the stock exchange dealer Firms

Ithe obligation to deposit the securities they receive in accordance to

Ithe securities administration agreement in a centralized securities

[deposit. Such disposition is mandatory

n the other hand, resolution 1530 of 1993, issued by the Banking

Superintendent adopts the regulation "Plan Unico de Cuentas", (PUC

in Spanish) for firms subject to inspection by the Banking

Superintendent that has been modified by external bulletin

publications 018 of 1994, 018 of 1995, 9, 10, and 17 of 1998, 12 of

I 24

25
2001 and 5 of 2002. Such resolution establishes that the stock dealer

firms must keep the books for each one of the activities or business

that require administration of third parties resources , including the

commission agreement and securities administration, that implies the

obligation to produce financial statements for each one of such

activities , without prejudice of the partnership. This with the

purpose to define a rigorous equity and accounting separation of

Tcdos las
dcrechos 32

I iResurvaiiob -jesaar-c&s-a. n d-Q-thep-assets-fesGU FJ-t-i esA-ji£ttftfi£t¥=f>f-t h eHSfrttaztui-^f

conn minerva!?" i 5 « 0 DlMjUrfl V MlrtllMOMMlln U \M1
:
OPM Sr%A :i ,-.:\^ • ' . ' _':; ©SEES

All redactions made on this page pursuant to

exemptions (b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)
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Redaction made on this page pursuant

to exemptions (b)(6), (b)(7)(A), (b)(7)(C),
(b)(7)(F)

surveillance and property of the clients or investors temporary unde

their responsibility for the development of the so calle

"administration business"

As stock broker members of the stock exchange, the commissio

agreements for securities purchase and sale and the one for securitie

administration implies the activity of "business administration", an

as a result, the financial resources (money and securities) received b

a stock broker firm to develop such agreements shall be handle

independently of its own resources as the other activities that fa

within the concept of-business administration".

' =2 Now, for the administration of the securities by the stock broke

firms, in the PUC , under class 7 structure called "trust memorandu

accounts" , the following was taken into account' "memorandu

accounts- receivable- administration expenses" , code 78140; an

"memorandum accounts-receivable- securities and clients foreig

currency for sale or retirement", code 78150, accounts in which

recognized the following.

- Code 78140, the nominal value of the securities received by th

stock broker firms for its administration with the sole purpose of i

custody, returns and dividend collection or capital collection

maturity term and

- Code 78150, the nominal value of received investment security

and foreign currency through the legally established firm that hav

not yet been placed and the securities and foreign currency receive

for sale or retirement, according to the case, even if those securitie

raTe-rrftaoiJa-b 1 e ox-e&tir *fci

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 Case 3:07-cv-02590-PJH Document 6 \-f filed 04/13/2009 ^^Riage 15 of 33
CA-14162671

1 I
According to numeral 1 of external bulletin 12 of 1994, issued by

the Banking Superintendent , the firms subject to supervision must

1 -1
inform by modem to such Banking Superintendent its financial

1 5
statement, that is to say its the balance sheet and general results of

such firms, and also the financial statement of each one of the
1 (i

7 business or activities that include permanent or provisional

1 S

')
administration of resources or securities of its clients and investors.

1 111
In the same manner, numeral 2.3 of the mentioned external bulletin

12 establishes the obligation to redeem each month relations that

breakdown , among other accounts of PUC for supervised firms,

"clients fee agreements", and "stock brokers fee agreements"

In accordance with the monthly financial statements sent via modem

corresponding to the periods October 2002 to march 2003, it appears

I that stock broker firm ^ ^ ^ U | ^ ^ | Comisionista de Bolsa

informed the balance of the accounts above mentioned for the

u months indicated below:

PATE CLOSING MNTH CODE 78140 CODE 78140

October 31 2002 $120,225,210,785 $12,865,704

November 30 2002 $28,494,177,692 0

December 31 2002 $17,474,219,828 0

January 31 2003 $19,198 875.515 0

SFebruary 28 2003 SI.667.984.384 0

March 31 2003 $51,598,530 0

Todos los
dorcchos M
I RcbcrvadoG
forma minervaS' 5HK> DlHflidjy actiulluda legiin U UiyD M I ' B f i S
i^K-nr^

All redactions made on this page pursuant to

exemptions (b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)
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Case 3:07-cv-02590-PJH Document 68-7 Filed 04/13/2009 Page 16 of 33

All redactions made on this page pursuant to

exemptions (b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)

Furthermore, during an inspection visit b~y tfie Bankin

Superintendent in September 8- 12 year 2003 to the firm

Comisionista de Bolsa it was evident that such firm carries it

Financial books in compliance with the regulations in force that wer

mentioned above

During the inspection it was observed that on the "Securitie

administration official book" of the stock broker firm

appear individually registered the securities that each clier

gave for its administration and that are in custody at a bank abroac

These are the securities

1 CLTENT
AT&T CANADA

CUSTODY DAT

i= RECEIVED

CUSTODY •DAT

CUSTODY -DAT

AMOUNT

ID CUSTODY DAT:;

| 1 - AMOUNT ^ H

CLIENT Inst De Religiosas de San Jose ID CUSTODY

DATE RECEIVED | ^ ^ ^ | AMOUNTJ

=7

TOTAL

50 BTMM

fill CLIENT | | ^ | ^ ^ ^ | ^ ^ t r e p o ID CUSTODY 12828-1 DAI

111 RECEIVED 18-11 -2002- AMOUNT

61
CLIENT. ^ m | ^ ^ m ^ ^ ID CUSTODY )AT1

RECEIVED 18-11-2002 AMOUNT •

M
-^QTA-L

002218
 Case 3:07-cv-02590-PJH Pi-r-im-nffl 7 Filnfl "1'1°P""° PpyiT^fii
CA-14162672

I YANKEE BONDS
I CLIENT: { ^ • • • • B A. ID: ^ H H i CUSTODY: j DATE

I RECEIVED- 17-09-2002 A M O U N T ^ i H

CLIENT: • • ^ • • • 1 A. ID: H ^ - CUSTODY: j DATE

I RECEIVED: 20-07-2002. AMOUNT: ^ B

I CLIENT: H ^ H i ^ H B . ID:fl^B-CUSTODY: | DATE

RECEIVED: 26-06.2002. AMOUNT: • •
I CLIENT: H H ^ ^ H i ^ H ID:
H B CUSTODY. | DATE
• RECEIVED. 26-06.2002. AMOUNT: ^ B

I CLIENT: - • H H H ^ H I ^ H ID: ^ ^ ^ | . CUSTODY:

I DATE RECEIVED: 14-06-2001 AMOUNT: ~~

| CLIENT: H ^ ^ g j ^ ^ m ^ . ID: CUSTODY: DATE

[RECEIVED: 18-04-2001. AMOUNT:>

I CLIENT: ^ | ^ m . ID: CUSTODY: DATE

• RECEIVED: 04-6-2002. AMOUNT: |

CLIENT^^^m^m^g S. ID: I CUSTODY: DATE

.o RECEIVED: 14-06-2001. AMOUNT|
CL1E>1T:
flHHHHH^H I D ' I CUSTODY: DATE

RECEIVED: 11-05-2001. AMOUNT:|

TOTAL: I

On the day of the visit there was a notification sent by AT&T with

date march 26 2003 informing its clients bond holders and other

creditors affected , the amount of money and shares class A (ATTC)

I and B (ATTCZ), that the company will distribute as of April l", of
EGIS
the present year to the bond holders and other affected creditors as
TDUCSlav
1 ckrcclios
iRese'viidoi part nf fhfi rp.srtiift npprafinn r»f thf nnnipany

forma rtliflBfVaS' fTOCTTIMfffyWT<WWWVffTni^Ti»»fJWfiKt'v>tV^tiytV 'i"v i.;.'. •-• ~fc" • ' fiyjTyro

All redactions made on this page pursuant to

exemptions (b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)

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Case 3:07-nv-n?5fln-P.IH Document 68-7 Filfiri 04/13/?003 Pane 18 of 33
All redactions made on this page pursuant to exemptions
(b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)

I
.14
In agreement with the records of the stock broker company I
.15

3l»
^ ^ ^ ^ ^ ^ ^ ^ ^ H and other documents studied , next we will present I
the detail of the amount of bonds AT&T owned by each client and
XI

,?K the amount in money and shares class A and B that corresponds to
I
it each one in the rescue operation process I
41)

41
AT&T CANADA
I
CLIENT-
42

4.1
I
I
I
I
I
I
I
I
I
I
It was possible to verify that the securities mentioned above are I
registered in the general balance and the subsidiary ledgers on the
name of the beneficiaries in memorandum accounts as securities
I
under administration, code 78140, securities on clients accounts. I
I
If is here, rpitpratprl that in rni\e 7K14D thp n n m i n a l valnft n f the-.

I
002220
I
 Case 3:07-cv-02590-PJH Document i iiea U4/'i JIZUUU—i- ge 19 of 33
CA -14162673

I securities received appears received by the stock broker firms to be

I administered with the sole purpose of its custody, yield and dividend

I collection or capital collection at maturity

I During the visit to the stock broker firm premises, the Banking

I Superintendent was able to verify that the securities that are under

custody at a foreign bank called Sterling Financial, do not belong to

I the stock broker f i m i ^ ^ ^ ^ J ^ ^ ^ ^ J C o m i s i o n i s t a de Bolsa , but to

I its clients the same clients that appear stated on the lists above and

I that were received b v ^ | B H ^ ^ ^ ^ ^ | in compliance with previous

[securities administration agreements with such clients

iThis official document is not a certification as its contents do not

• correspond to any of the certification capacities assigned to the

|Banking Superintendent as stated on the corresponding regulations

in force.

Io
Sincerely
I Signed:

I Head of Securities Stock Exchange Division ,

Securities Agents and other supervised bodies

=*********•***•*****

********
f ****** ***********************
ILEGIS * * * * * $ * * * * * * * * * * * * * K* +
TOIIDS IOS
derechos

I
iHeserv.Tdoij

fonrarainervaQ'i SKODlSn"diV«iti'ili"il»,«gun!«LnCp«£IB tMiMimzs&ur HMMHt

All redactions made on this page pursuant to

exemptions (b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)
002221
Case 3:07-cv-02590-PJH Document 68-7 Filed 04/13/2009 Page 20 of 33
All redactions made on this page
pursuant to exemptions (b)(6), (b)(7)(A),
(b)(7)(C), (b)(7)(F)

THIS IS AN OFFICIAL TRANSLATTUJTH^TSTTHFUL AND)

23
COMPLETE OF WHICH REMAINS A COPY FOR IT:
34
CONFRONTATION IF NECESSARY
35

36
DATE OF THE TRANSLATION: OCTOBER 2003

37 OFFICIAL TRANSLATOR:
3K MEMBER OF THE COLOMBIAN SCHOOL OF TRANSLATORS
.'9
LICENSE ^ ^ B l S S U E D BY THE COLOMBIAN MINISTRY O
4(1
JUSTICE. REGISTERED BEFORE THE COLOMBIA?
41
MINISTRY OF FOREIGN AFFAIRS, THE EMBASSY OF TH
42
UNITED STATES IN COLOMBIA, THE EMBASSY O
43

J4 CANADA, THE CONSULATES OF SWITZERLAND, BELGIUM

45 FRANCE, GREAT BRITAIN IN CALL
46
BEFORE THE GOVERNOR OF VALLE DEL CAUCA
47
REGISTRATION: PAGE 159, BOOK C-200-3 , DATE MRCH T
4K
1990

BEFORE THE ELEVENTH NOTARY PUBLIC IN CAL

REGISTRATION: 1794, DATE: MARCH 28, 1990
SIGNATURE AND SEAL OF THE OFFICIAL TRANSLATOR:

ESTA ES UNA TRADUCCION OFICIAL FIEL Y COMPLETE

DE LA CUAL QUEDA COPIA PARA SU CONFRONTACION S
FUERA NECESARIO
FECHA DE TRADUCCION: OCTUBRE DE 2003
TRADUCTORA OFICIAL:
MIEMBRO DEL COLEGIO COLOMBIANO DE TRADUCTORES
LICENCI EXPEDIDA POR EL MINISTERIO DE
JUSTICIA\. DE C OLOMBIA,

002222