DETAILS ABOUT THE CLOSURE OF NFC             For those of you executing due diligence for any purpose as it relates to businesses I am involved in, I wanted to extend the courtesy of detailing the events surrounding the closure of my first business, National Finance Corp. (NFC).  I started NFC when I was 19 years old in my college dorm room.  By the time I was in my mid 20’s, I had built the firm in to a national company doing business in all 50 states and on the verge of an IPO.  At this time, I had over 600 employees and offices around the country and was one of the first mortgage companies to develop a call center strategy for originating business, trade marking the term “telelending.”             In October of 1998, while on the cusp of an IPO, the market for alternative A mortgages collapsed in one day.  The sudden collapse was brought on by the defaults from emerging markets (such as Russia, as well as others) which left the investors in ALT A loans insolvent and unable to absorb any further risky investments.  These events created a domino effect across the country as mortgage companies from coast to coast closed their doors immediately.             After spending all our resources preparing for our IPO, NFC was left in a vulnerable position.  The IPO plans were instantly dismissed and the company was now in a struggle to survive.  Being a young man in my 20s, with little experience with a crisis of this magnitude, I was ill prepared to properly handle such a sudden and vicious downturn.  As we struggled to survive and save the jobs of 600 employees, I personally put back into the company nearly all the money I hade made during my tenure as Chairman and CEO of NFC.   But in a time of great financial crisis, mistakes were made.   Through my team of financial advisors, NFC misappropriated funds that were earmarked to fund only mortgages to cover payroll in a desperate attempt to buy time until the market turned around.  During this entire time, I feel it is critical to state that I did not experience any personal gain.              After several months of attempting to see an increase in the price paid for our loans and pay back the misappropriated funds, it became clear that we were in a financially hopeless situation.  On November 22, I made the decision to go to our investment banker, Bear Stearns, in NYC and disclose what had happened, why it happened and to ask for assistance in finding a solution.  At that meeting, I agreed to turn over control of NFC to Bear Stearns if they would agree to guide the company to a sale so that my employees did not lose their jobs.  Bear Stearns agreed to the terms, and I promptly signed over the company feeling as though I had shown the ultimate example of leadership in the midst of a difficult situation.           Bear Stearns took immediate control of NFC and ran the company for one month before failing to guide the company to a sale and thus promptly, and without warning, closing the doors of NFC on December 22.  I had not been in control of the company for approximately 30 days and had no role in the actual closure of the firm.  But because of minimal and miscommunication with the press, the media reported that I had personally closed the doors just days before Christmas and with the workers owed 2 weeks pay.  This was most difficult on my former employees, who had little knowledge of the actual facts.         With a damaged reputation and the demise of NFC now public, I felt it was critical to re-pay every penny to my employees, as well as repay Bear Stearns, with interest.  It was my ultimate goal to eventually rehire my employees and rebuild. In conjunction with several former NFC employees, we created a new structure designed in such a way where I could be instrumental in its success and use the proceeds of that success to make everybody whole again.  We achieved immediate success and many of my former employees came back to work as they started to understand the real facts of the closure of NFC.  I was offered by all my creditors to settle my debts at 50 cents on the dollar and even received advice by my attorney to file bankruptcy to wipe out these large debts.   All of these solutions would have assisted me in paying off my debts, but I assumed a far greater responsibility than the above mentioned.  I rejected both the bankruptcy option and the 50 cents on the dollar option and told all parties that they would be repaid in full.  In the case of Bear Stearns, it was repaid with interest.  In addition, even though I wasn’t held responsible for the 2 weeks of unpaid wages to my former employees (because Bear Stearns was in control) I paid $250,000, the full amount of the back wages owed.         After a period of time, I paid all 7 million of NFC’s personal guarantees off in full, put 500 former employees back to work, and began the steps toward rebuilding my name in my community.  The new organization and its affiliate marketing company became one of the largest operations in the mortgage industry, successfully brokering over 1 billion annually for consecutive years.         Unfortunately, during all of this rebuilding, the federal authorities were investigating the misappropriation of the funds that occurred through the use of the company’s warehouse lines of credit.   We approached the US attorney’s office and offered evidence that I had personally corrected the situation.    Much to my disappointment, and even with a letter from Bear Stearns showing the extraordinary efforts made to make the situation right, they insisted that myself and my chief financial officer take a plea and accept responsibility for the misappropriating of funds.        On December 8th 2003 the trial Judge reviewed the case which detailed the repayments, as well as read letters of support from employees, politicians, charities and area citizens.  The judge agreed that I had fully corrected the situation and I was given probation for the incident which was later eliminated 1 year before its term was set to expire. In addition, I have since been given a certificate of relief by the court, which details that despite my plea, I can not be prejudiced against for licensing in the financial services industry.   Though not often granted, this document officially allowed me to put my past behind me.             Along with my various business endeavors, I also started the David B. Silipigno Foundation which has served as my vehicle to show the Capital Region community who I am and to do good works for those in need.   My foundation was formed 7 years ago and serves as a way to continually develop relationships with all the charities, large and small, in my community.  They will tell you that I have been the model of corporate citizenship and a leader in my community.  As it stands today, I now have my good name back and have been able to help many people with various socio-economic or health-related problems, focusing primarily on children, but also supporting community events which are detailed on my foundation website.       Often times, you see the true character of someone by how they handle adversity.   My proudest moments have been those relative to how I handled in full and came back from such a tenuous time.  Sometimes you can’t control what happens to you, but you can always control your character... and that’s what I tried to do in the rectifying of the NFC closure.    The demise of that firm is in the past, but it will always serve as an expensive lesson which has aided me greatly with the success I have had, and will likely serve me well in to the future. Regards, David B. Silipigno

“Someone once said to me that regardless of where you go in life or what career path you choose, you can always find a way to give to others.  During a time when many are struggling financially, it is heartwarming to know that there are business owners like Mr. Silipigno who are willing to make a sacrifice for the betterment of others.  Mr. Silipigno recognizes the significance of providing for children in need and supporting those who care for them on a daily basis.  On behalf of the pediatric patients, families and staff of Northwoods at Hilltop, I would like to thank Mr. Silipigno for taking the time, energy and funding to provide for not only our medically-fragile children, but all the children in our area in need. “ Lisa Cupolo Northwoods Health System "David Silipigno's philanthropy speaks for itself, but it's even more impressive how much impact he has had on our community at such a young age. His foundation continues to touch the lives of those in need of assistance, particularly our youth and at-risk communities.  His energy and commitment to finding innovative ways to engage not-for-profit agencies, in an effort to help make them more self sustainable, should be commended.  The Salvation Army is proud of its new found partnership with David, and looks forward to a continued, mutually beneficial relationship.  We feel lucky to have David and his Foundation in our Capital Region community." Felix Perez Salvation Army “The David B. Silipigno Foundation is an important partner with the Addictions Care Center of Albany, Inc. (ACCA), and we applaud his support of our agency.  Because of the Foundation’s commitment to the ACCA, we are able to continue to deliver treatment services and prevention programs to an at-risk population, including critical prevention education services to schools and community centers. These valuable prevention programs have been delivered to thousands of children in the Capital Region annually for over ten years.  The David B. Silipigno Foundation has been an integral part of helping advance the mission of our agency, along with many other organizations like ours, throughout the past few years.” Karen Karl ACCA “David Silipigno has been there for the Police Athletic League, and many other charities in our region, whenever called upon.  Over the years, his Foundation has become a staple in our community.  Especially in difficult economic times, those of us in the not-for-profit community have come to rely upon his commitment to help those in need, particularly the children.  At a very young age, David has started a Foundation that has helped springboard the efforts of many events... and those events have legs.  Thousands of lives are enriched each and every year by the programs and services of PAL, and others like us, who rely on the Foundation as a source of support.” Sgt. (Ret.) Leonard R. Ricchiuti Albany Police Athletic League, Inc. "In this great world we live in there are givers and takers. I’m here to tell you that Dave Silipigno is a GIVER in bold capital letters.  It is rare, refreshing and reassuring to find a successful businessman and entrepreneur who is a philanthropist with a special “Midas touch”.  He is a giver with a huge heart and true class.  I have witnessed his generosity touch many people and many an important cause.  Just scroll through his website to see for yourself. For those of you who do not know Dave personally, let me say that he is driven to succeed and performance-minded, while also respected and admired for his fairness, balance and his generous nature and charismatic leadership style.  His peers and his staff look up to Dave for all the good he stands for and for the hope and joy he brings to others.  He is a whirlwind of exciting energy and he likes to do things that make a tangible difference.  He sees challenges as opportunities and solves problems with perseverance and a smile. Dave’s life is an inspiration to his twin daughters, whom he often involves in his charity work.  They have seen their dad not just write a check, but also get involved and really care.  Whether Dave is entertaining supporters and talking shop at Saratoga PLAN’s Feast of the Fields, loading up a tractor-trailer with food and emergency supplies that he and his team sent to the victims of Hurricane Katrina, finding a way to help charities everywhere through Shop Wurld, or holding back tears of joy playing Santa Claus at the Canfield Casino’s Christmas Party for hundreds of kids, his life touches many people in a profoundly positive way. From an early age, Dave has known that the true reward of giving cannot be put in words; it is something you feel, and that you and others can feel very good about.  Giving of himself and helping others is one of the great ways in which Dave celebrates life.  I take my hat off to him and throw him my full support with two thumbs up." John Colley Colley Asset Management ”I continue to be grateful for the generosity of our corporate partners who assist us in bringing this and other wonderful events to our community.  Again, many thanks to you for your contribution and support.” Gerald D. Jennings Mayor, City of Albany