Deposition Transcript of Scott Rothstein (Albert ... - Trustee Services
Deposition Transcript of Scott Rothstein (Albert ... - Trustee Services
Deposition Transcript of Scott Rothstein (Albert ... - Trustee Services
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1 UNITED STATES BANKRUPTCY COURT<br />
SOUTHERN DISTRICT OF FLORIDA<br />
2 FORT LAUDERDALE DIVISION<br />
3<br />
4 In re:<br />
5 ROTHSTEIN ROSENFELDT ADLER, P.A.,<br />
6 Debtor. Case No. 09-34791-BKC-RBR<br />
Chapter 11<br />
7 _________________________________<br />
8<br />
HERBERT STETTIN, Chapter 11 <strong>Trustee</strong>,<br />
9<br />
Plaintiff,<br />
10<br />
11 vs. Adv.Pro.No.10-03650-BKC-RBR-A<br />
12 ALBERT PETER, IRIS PETER,<br />
TATIANA YOEL (aka TATYANA YOEL),<br />
13 JEWEL RIVER CRUISE LINES, US, LLC,<br />
JEWEL RIVER CRUISE LINE, GMBH,<br />
14 AND JEWEL CRUISES HOLDING, AG,<br />
15 Defendants.<br />
/<br />
16 500 E. Broward Blvd.<br />
Suite 700<br />
17 Ft. Lauderdale, Florida<br />
Tuesday, 9:16 a.m.<br />
18 June 5, 2012<br />
19 D E P O S I T I O N<br />
20 <strong>of</strong><br />
21 SCOTT ROTHSTEIN<br />
(Via Video Conference)<br />
22<br />
taken on behalf <strong>of</strong> the <strong>Trustee</strong><br />
23 pursuant to a notice <strong>of</strong> taking deposition<br />
24 ---<br />
25<br />
Page 1
1 APPEARANCES:<br />
BERGER SINGERMAN, by<br />
2 CHARLES LICHTMAN, Esq., <strong>of</strong> counsel, and<br />
STEVEN WEBBER, Esq., <strong>of</strong> counsel,<br />
3<br />
AKERMAN, by<br />
4 MICHAEL I. GOLDBERG, <strong>of</strong> counsel<br />
Attorneys for Unsecured Creditors Committee<br />
5<br />
LAWRENCE LaVECCHIO, Assistant U.S. Attorney,<br />
6 U.S. DEPARTMENT OF JUSTICE.<br />
7 MARC NURIK, Esq.,<br />
Attorney for <strong>Scott</strong> <strong>Rothstein</strong>.<br />
8<br />
ALSO PRESENT:<br />
9 Special Agent Taryn Guariglia<br />
10<br />
I N D E X<br />
11<br />
WITNESS<br />
DIRECT CROSS REDIRECT RECROSS<br />
12 SCOTT ROTHSTEIN<br />
13 (By Mr. Lichtman) 4<br />
14 (By Mr. Goldberg) --<br />
15 (By Mr. LaVecchio) --<br />
16 (By Mr. Nurik) --<br />
17 EXHIBITS<br />
18 PLAINTIFF'S FOR IDENTIFICATION<br />
19 1 28<br />
20 2 44<br />
21 3 63<br />
22 4 91<br />
23 5 162<br />
24<br />
25<br />
Page 2
1 Thereupon:<br />
Page 3<br />
2 SCOTT ROTHSTEIN<br />
3 was called as a witness and, having been duly sworn,<br />
4 was examined and testified as follows:<br />
5 MR. LICHTMAN: Let the record reflect this<br />
6 is the Rule 7030 deposition in the case <strong>of</strong> Herbert<br />
7 Stettin versus <strong>Albert</strong> Peter, et al, adversary case<br />
8 number 10-03650-BKC-RBR-A, taken in the underlying<br />
9 main case <strong>of</strong> <strong>Rothstein</strong> Rosenfeldt Adler.<br />
10 This deposition is taken pursuant to<br />
11 protocol orders entered by Judge Ray in this matter.<br />
12 I want to put on the record that the<br />
13 protocol order set a schedule for attendance at this<br />
14 deposition and required all counsel <strong>of</strong> record to be<br />
15 present 30 minutes before the commencement <strong>of</strong> the<br />
16 deposition.<br />
17 Yesterday afternoon, being Monday afternoon,<br />
18 the 4th, Alan Marcus, opposing counsel representing<br />
19 <strong>Albert</strong> Peter and the other defendants, advised that<br />
20 he had no interest in cross-noticing this case,<br />
21 paying for Marc Nurik's attorney's fees as required<br />
22 by the Court order in order to participate in<br />
23 cross-examination.<br />
24 We have waited. It is now 9:16 and he is<br />
25 not here. We have also called him on his cell phone
1 and sent him e-mails. I called him on his cell<br />
Page 4<br />
2 phone -- I turned it <strong>of</strong>f, but I'm going to put it on<br />
3 the record -- at 9:12 in the presence <strong>of</strong> everybody<br />
4 that is present in this room right now to tell him we<br />
5 were proceeding and, accordingly, that's what we will<br />
6 do.<br />
7 DIRECT EXAMINATION<br />
8 BY MR. LICHTMAN:<br />
9 Q. Mr. <strong>Rothstein</strong>, I'm going to spend today on<br />
10 matters related to <strong>Albert</strong> Peter, Iris Peter, Tatiana<br />
11 Yoel, Jewel River Cruise and Silversea Cruise,<br />
12 although Silversea is not a defendant in this<br />
13 adversary case.<br />
14 So where I'd like to start is at the very<br />
15 beginning and get some foundational background as to<br />
16 your relationship with <strong>Albert</strong> Peter and Silversea and<br />
17 how that relationship began.<br />
18 So I have a general understanding that<br />
19 you became familiar with Silversea originally at a<br />
20 meeting that -- or dinner -- that you attended at a<br />
21 restaurant in Fort Lauderdale with Stanley Coniglio,<br />
22 that was Runway 84, and Mr. Coniglio introduced you<br />
23 to Diane DelValle, and Ms. DelValle was the<br />
24 girlfriend <strong>of</strong> Mr. Peter, and Mr. Peter was the CEO <strong>of</strong><br />
25 Silversea, and that was basically how the foundation
1 <strong>of</strong> the relationship began.<br />
Page 5<br />
2 Is that generally correct?<br />
3 A. Yes.<br />
4 Q. So now having that on the record and<br />
5 knowing that that's not the best way to put evidence<br />
6 in the record, I just wanted to make sure that I was<br />
7 fundamentally correct in the facts.<br />
8 So, if you would, tell me approximately<br />
9 when it was that you first became aware <strong>of</strong> Silversea<br />
10 Cruises as a potential client <strong>of</strong> RRA.<br />
11 A. You'd have to look for me at the very first<br />
12 bill we ever sent them, but it was some time in 2006,<br />
13 I believe, when I met <strong>Albert</strong> Peter through<br />
14 Mr. Coniglio.<br />
15 Q. And who is Mr. Coniglio?<br />
16 A. Mr. Coniglio is a gentleman that I had<br />
17 known for several years. I actually met him through<br />
18 a friend <strong>of</strong> mine at Runway 84.<br />
19 I knew him at the time to be associated<br />
20 with an organized crime family and he made the<br />
21 introduction <strong>of</strong> me to Diane DelValle and ultimately<br />
22 to <strong>Albert</strong> Peter.<br />
23 Q. In your deposition in December, 2011 you<br />
24 testified that you had sort <strong>of</strong> like a standing<br />
25 dinner -- I forgot which day <strong>of</strong> the week -- at
1 Runway 84.<br />
Page 6<br />
2 Do you recall that?<br />
3 A. I do. It was Thursday nights.<br />
4 Q. Thursday nights. And was Mr. Coniglio,<br />
5 we'll call it, a member <strong>of</strong> the group <strong>of</strong> men that<br />
6 typically you dined with on Thursday nights at<br />
7 Runway 84?<br />
8 A. Yes. Thursday night at Runway 84 was<br />
9 called "council meetings." That was the -- for lack<br />
10 <strong>of</strong> a better word, that was the secret name, and it<br />
11 was the night that all the guys from all different<br />
12 groups would gather at Runway 84 and eat dinner and<br />
13 hang out most <strong>of</strong> the night usually.<br />
14 Q. Why were you there?<br />
15 A. Without getting into too much detail -- the<br />
16 first reason I was there was to eat dinner.<br />
17 Second, it was a lot <strong>of</strong> fun.<br />
18 The third reason was I had various business<br />
19 dealings with some <strong>of</strong> the people that ate there on<br />
20 Thursday nights.<br />
21 Q. I think that this would be a really sexy<br />
22 area <strong>of</strong> inquiry, but I don't know that this part <strong>of</strong><br />
23 it is particularly relevant to the <strong>Albert</strong> Peter story<br />
24 and I suspect that with Mr. LaVecchio sitting to my<br />
25 right there would be a point quickly that he would
1 say that this is an area <strong>of</strong> inquiry that I ought not<br />
Page 7<br />
2 go into.<br />
3 Would that be a fair statement?<br />
4 MR. LaVECCHIO: It would.<br />
5 Q. Therefore, while I'm going to address some<br />
6 limited area <strong>of</strong> inquiry with respect to Mr. Coniglio<br />
7 and how the relationship began, I'm not going into<br />
8 any further detail on the other color that you just<br />
9 provided.<br />
10 So with respect to Mr. Coniglio how did<br />
11 your knowing him lead to your getting to know<br />
12 Mr. Peter?<br />
13 A. Mr. Coniglio was the type <strong>of</strong> person that<br />
14 was always looking for a method to either earn money,<br />
15 to gain favor, to enable himself to get something out<br />
16 <strong>of</strong> what I'll term relationship building.<br />
17 When I was introduced to Diane DelValle<br />
18 and ultimately to <strong>Albert</strong> Peter Mr. Peter was<br />
19 basically told by Mr. Coniglio that he was going to<br />
20 hire me and my law firm to represent Silversea Cruise<br />
21 Lines, and ultimately that is what occurred.<br />
22 Q. What to the best <strong>of</strong> your knowledge was the<br />
23 nature <strong>of</strong> the relationship between Diane DelValle and<br />
24 Mr. Coniglio?<br />
25 A. They were friends that spent a significant
1 amount <strong>of</strong> time together.<br />
Page 8<br />
2 Before I ever knew <strong>Albert</strong> Peter I used to<br />
3 see Diane on a regular basis. She'd be sitting at<br />
4 the bar with Mr. Coniglio at Runway 84.<br />
5 Q. Platonic friends?<br />
6 A. To the best <strong>of</strong> my knowledge, sir.<br />
7 Q. Now, you indicated that Mr. Peter was told<br />
8 that you were going to be the attorney for Silversea.<br />
9 What do you mean by that?<br />
10 A. I don't know what the underlying<br />
11 conversations were, but I was told directly by<br />
12 Mr. Coniglio that I would be getting Silversea as<br />
13 a client and he told me specifically that he would<br />
14 handle it with <strong>Albert</strong>.<br />
15 Apparently he and <strong>Albert</strong> through Diane<br />
16 already had a relationship. I do not know what that<br />
17 relationship was, but I do know that even by that<br />
18 point in time Mr. Coniglio was taking cruises on<br />
19 Silversea's ships, which are rather expensive, at<br />
20 either no cost or a very, very low cost as if he was<br />
21 a family member <strong>of</strong> a Silversea employee.<br />
22 Q. To the best <strong>of</strong> your knowledge, was<br />
23 Mr. Coniglio a family member <strong>of</strong> a Silversea employee?<br />
24 A. I could say that "family" is an interesting<br />
25 word, but no, he was not.
1 Q. Sort <strong>of</strong> using the vernacular here, would it<br />
2 be a fair statement then with respect to your comment<br />
3 that Mr. Peter was told that RRA was going to become<br />
4 counsel to Silversea, that Mr. Coniglio made him an<br />
5 <strong>of</strong>fer he couldn't refuse?<br />
6 A. I think that's a polite way to say it. I<br />
7 think that they had a mutually beneficial business<br />
8 relationship and it was probably in <strong>Albert</strong>'s best<br />
9 interest to appease Mr. Coniglio, as most people who<br />
10 did business with him did.<br />
11 Q. Do you have any knowledge <strong>of</strong> any <strong>of</strong> the<br />
12 facts <strong>of</strong> what the mutually beneficial relationship<br />
13 was between Coniglio and Mr. Peter?<br />
14 A. The only thing that I was ever told was<br />
15 that <strong>Albert</strong> had previously been having some problems<br />
16 in town and Mr. Coniglio resolved the problems for<br />
17 him.<br />
18 More than that I do not know.<br />
19 Q. And I assume you don't know what the nature<br />
20 <strong>of</strong> the problems were?<br />
21 A. I do not, sir.<br />
22 Q. So at that point in time, was that when<br />
23 you first met <strong>Albert</strong> Peter was after Coniglio told<br />
24 you that you'd be getting Silversea's business?<br />
25 A. Yeah. It was soon thereafter that I met<br />
Page 9
1 <strong>Albert</strong>.<br />
Page 10<br />
2 Q. And to be sure, you were also told by<br />
3 Mr. Coniglio that in exchange for his arranging for<br />
4 you to get Silversea's business you bought through<br />
5 RRA with RRA funds Mr. Coniglio a Lexus.<br />
6 Do you recall that?<br />
7 A. Yes. You're jumping a little bit far ahead<br />
8 because that was after we had collected a significant<br />
9 amount <strong>of</strong> money from Silversea through our billings,<br />
10 both legitimate and illegitimate billings, and<br />
11 Mr. Coniglio was clearly being told by Diane DelValle<br />
12 and <strong>Albert</strong> how much money we were receiving, and that<br />
13 is when Mr. Coniglio came to me and "requested" that<br />
14 I buy him a car.<br />
15 Q. Then we'll move into that down the road,<br />
16 but just quickly: Did you ever have to give<br />
17 Mr. Coniglio any money <strong>of</strong> that which was generated<br />
18 from real and/or fictitious billings sent by RRA to<br />
19 Silversea?<br />
20 A. Just the car.<br />
21 Q. So then you met <strong>Albert</strong> Peter.<br />
22 What was your understanding <strong>of</strong> <strong>Albert</strong><br />
23 Peter's position at Silversea?<br />
24 A. He was CEO.<br />
25 Q. Did you have an understanding that he was
1 able to direct that you would get the legal work for<br />
2 Silversea?<br />
3 A. It took some doing, but yes.<br />
4 Q. When you say "it took some doing," what do<br />
5 you mean by that?<br />
6 A. At the time that I was told that I was<br />
7 going to be getting Silversea as a client and at<br />
8 the time that I met <strong>Albert</strong> I was told by <strong>Albert</strong> that<br />
9 there was another law firm representing Silversea at<br />
10 the time and that he would have to go through some<br />
11 maneuvers to have them fired.<br />
12 Q. Do you know who that other law firm was?<br />
13 A. Arent Fox.<br />
14 Q. I know that there was a point in time where<br />
15 there was some litigation between Arent Fox and<br />
16 Silversea.<br />
17 A. There was.<br />
18 Q. Did that litigation result from Arent Fox's<br />
19 termination as counsel to Silversea?<br />
20 A. I don't specifically recall.<br />
21 Q. So ultimately, though, <strong>Albert</strong> was able to<br />
22 direct legal work to RRA. Correct?<br />
23 A. Yes. Ultimately Arent Fox was terminated.<br />
24 I don't know if they kept them on, as there<br />
25 were a few files that they were pretty deep into, but<br />
Page 11
1 at a certain point in time shortly after meeting<br />
Page 12<br />
2 <strong>Albert</strong> I was hired on to handle the bulk <strong>of</strong><br />
3 Silversea's work.<br />
4 Q. When you say "the bulk <strong>of</strong> Silversea work,"<br />
5 do you mean as sort <strong>of</strong> outside general counsel?<br />
6 A. Yes.<br />
7 Q. Describe for me generally what you<br />
8 understood your -- meaning RRA's role -- was going to<br />
9 be with respect to Silversea once Mr. Peter was able<br />
10 to direct the work to RRA.<br />
11 A. Any day-to-day legal issues that they had,<br />
12 any day-to-day labor and employment issues that they<br />
13 had -- just about anything I think with the exception<br />
14 <strong>of</strong> admiralty work was going to be handled by me and<br />
15 my firm.<br />
16 Q. And did that, in fact, to the best <strong>of</strong> your<br />
17 knowledge occur?<br />
18 A. Yes. With very few exceptions we were the<br />
19 firm for them.<br />
20 Q. At the beginning <strong>of</strong> when you began doing<br />
21 legal work for Silversea, what was the nature <strong>of</strong> your<br />
22 relationship with <strong>Albert</strong> Peter?<br />
23 A. It was pr<strong>of</strong>essional with the undercurrent<br />
24 <strong>of</strong> the knowledge that I was placed there by<br />
25 Mr. Coniglio.
1 Q. Did Mr. Peter actually acknowledge that to<br />
2 you?<br />
3 A. He acknowledged it to me. Diane DelValle<br />
4 acknowledged it to me, and I was regularly reminded<br />
5 <strong>of</strong> it by Mr. Coniglio.<br />
6 Q. So it sounds to me like at the beginning<br />
7 your relationship with Mr. Peter was arm's length.<br />
8 Is that a fair statement?<br />
9 A. You know, it's hard to explain, but when<br />
10 you're given business by someone like Mr. Coniglio<br />
11 generally the person you're doing business with in<br />
12 the transaction is not really ever arm's length<br />
13 because all the parties have a vested interest in<br />
14 getting along, so I think that we were both thrust<br />
15 into a situation that was good for everybody involved<br />
16 but that required us to start <strong>of</strong>f possibly closer<br />
17 than we might have been under normal circumstances.<br />
18 Q. Did the relationship that you had with<br />
19 Mr. Peter grow over time?<br />
20 A. Yes. Very quickly.<br />
21 Q. Describe how that happened.<br />
22 A. Just starting with the fact that I had met<br />
23 him through Mr. Coniglio and, in addition, had met<br />
24 him through Diane DelValle, who was one <strong>of</strong> his<br />
25 mistresses at the time, I was, for lack <strong>of</strong> a better<br />
Page 13
1 term, in the know about his extracurricular activity<br />
2 and I guess it's the birds <strong>of</strong> a feather argument that<br />
3 we became close right from the get-go.<br />
4 I was also spending a significant amount <strong>of</strong><br />
5 time at Silversea reviewing old files, going through<br />
6 things that needed to be looked at, doing legitimate<br />
7 legal work, and we spent a lot <strong>of</strong> time eating lunch<br />
8 together.<br />
9 We, <strong>of</strong> course, saw each other frequently<br />
10 out. We socialized a lot together right from the<br />
11 get-go, and the relationship grew from there.<br />
12 Q. You said that you were knowledgeable about<br />
13 Mr. Peter's extracurricular activity.<br />
14 By that did you mean the fact that<br />
15 Mr. Peter was married to Iris Peter while he was<br />
16 having an affair with Diane DelValle?<br />
17 A. Yes.<br />
18 Q. And were you also aware that Mr. Peter was<br />
19 having an affair at the same time with Tatiana Yoel?<br />
20 A. Well, Tatiana came into the picture a<br />
21 little bit down the road, but, yes, ultimately I was<br />
22 aware that he was having an affair with both<br />
23 Ms. DelValle and with Tatiana.<br />
24 Q. Did Ms. DelValle know about Ms. Yoel?<br />
25 A. At some point in time she did. In the<br />
Page 14
1 beginning she did not.<br />
Page 15<br />
2 Q. How did that go over once she learned about<br />
3 it?<br />
4 A. Like a two-ton boulder.<br />
5 Q. And, likewise, I assume that Ms. Yoel<br />
6 ultimately learned about Ms. DelValle, as well?<br />
7 A. Yes, sir.<br />
8 Q. With the same reaction as Ms. DelValle?<br />
9 A. Pretty much the same.<br />
10 Q. And when you said two birds <strong>of</strong> a feather,<br />
11 meaning you, is that because you were having<br />
12 relations with other women, as well, so <strong>Albert</strong> and<br />
13 you had that issue in common?<br />
14 A. Yes, sir.<br />
15 Q. Although I think it would be a fair<br />
16 statement in 1986 you were not yet married to Kim.<br />
17 Is that correct?<br />
18 MR. GOLDBERG: 1986?<br />
19 Q. Excuse me. 2006.<br />
20 In 1986 you were in diapers.<br />
21 A. I wish I was in diapers in 1986.<br />
22 In 2006 I was not married to Kim, no.<br />
23 Q. You were single. Correct?<br />
24 A. You know, I don't remember when I -- what<br />
25 year I started dating Kim, but unfortunately, Chuck,
1 even when I was dating someone seriously I was<br />
Page 16<br />
2 generally having extracurricular activities with<br />
3 other women, so it was something in my nature and it<br />
4 did have -- it did create a bond between <strong>Albert</strong> and I<br />
5 in addition to the Coniglio bond and the other bonds<br />
6 that grew over time.<br />
7 Q. Do you have before you <strong>Trustee</strong> -- it's a<br />
8 document titled T-AP22, and it's the complaint.<br />
9 Actually, the first page <strong>of</strong> it is 18.<br />
10 MS. GUARIGLIA: Chuck, what's the Bates<br />
11 number?<br />
12 MR. LICHTMAN: That's what it is. T-AP18.<br />
13 A. Mr. Lichtman, just so that the record is<br />
14 clear --<br />
15 Q. Yes.<br />
16 A. -- one <strong>of</strong> the other things that made <strong>Albert</strong><br />
17 and I so close right from the get-go is that because<br />
18 Diane DelValle was his assistant at the time at<br />
19 Silversea he knew that I was being fed significant<br />
20 amounts <strong>of</strong> information about what was going on there,<br />
21 so that added to the, let's say -- the confidential<br />
22 nature <strong>of</strong> our relationship.<br />
23 MR. LICHTMAN: Taryn, do you have that<br />
24 exhibit up now, the complaint?<br />
25 MS. GUARIGLIA: Yes. Yes.
1 Q. All right. If you would turn to page 5.<br />
Page 17<br />
2 That's T-AP22.<br />
3 A. Okay. I'm there.<br />
4 Q. If you would take a look at paragraph 22.<br />
5 A. Yes, sir.<br />
6 Q. What I want to do is confirm or deny or<br />
7 supplement any <strong>of</strong> the items that I have listed in<br />
8 paragraph 22 that discuss the strength <strong>of</strong> your<br />
9 relationship with Mr. Peter.<br />
10 At paragraph 22(a): The <strong>Trustee</strong> alleges<br />
11 that the Peters regularly socialized with <strong>Rothstein</strong><br />
12 and his wife Kimberly <strong>Rothstein</strong>.<br />
13 Is that a true statement?<br />
14 A. That's incorrect.<br />
15 Q. Incorrect. All right.<br />
16 What is incorrect about it?<br />
17 A. It should say: <strong>Albert</strong> Peter regularly<br />
18 socialized with <strong>Scott</strong> <strong>Rothstein</strong> and his friends.<br />
19 Q. Okay. So it would be inaccurate to say<br />
20 that <strong>Albert</strong> and Iris socialized with you and Kim?<br />
21 A. They were together on a handful <strong>of</strong><br />
22 occasions with Kim and I, but they did not socialize<br />
23 with Kim and I as a couple on a regular basis.<br />
24 Q. Subparagraph (b) says that Peter and<br />
25 <strong>Rothstein</strong> spoke frequently about personal matters and
1 they socialized together regularly for drinks and<br />
Page 18<br />
2 cigars independent <strong>of</strong> their spouses.<br />
3 Is that a correct statement?<br />
4 A. Yes, sir.<br />
5 Q. Can you give me some detail to support that<br />
6 allegation, please -- and that's a vague question so<br />
7 let me put it into a context for you <strong>of</strong> quantity, as<br />
8 an example -- how <strong>of</strong>ten you saw him.<br />
9 A. As the relationship grew <strong>Albert</strong> and I<br />
10 would not only see each other on Thursday nights at<br />
11 Runway 84, but he and I would frequently have lunch<br />
12 together. We'd frequently go to dinner together. We<br />
13 would take <strong>of</strong>f in the middle <strong>of</strong> the day and go have<br />
14 cocktails or wine and cigars. We would go shopping<br />
15 together. We spent a lot <strong>of</strong> time together both<br />
16 during the workday and afterwards.<br />
17 I would go to his <strong>of</strong>fice and we'd sit and<br />
18 chat about any number <strong>of</strong> things for hours at a time.<br />
19 I would go pick <strong>Albert</strong> up from his <strong>of</strong>fice and we'd go<br />
20 shopping together. We'd go out in the middle <strong>of</strong> the<br />
21 day drinking. We had a very close relationship.<br />
22 Q. You commented a moment ago that <strong>Albert</strong><br />
23 joined you for dinners at Runway 84.<br />
24 Did he then participate in the council<br />
25 dinners that you had?
1 A. No.<br />
Page 19<br />
2 Q. These are separate dinners?<br />
3 A. Well, they were separate dinners -- you<br />
4 have to understand -- on Thursday nights different<br />
5 groups <strong>of</strong> guys eat with each other. <strong>Albert</strong> would<br />
6 generally be eating with Diane and then people mix<br />
7 and socialize so he was in the restaurant at the same<br />
8 time. Then we'd meet at the bar for cocktails and<br />
9 cigars.<br />
10 Generally after -- I forgot what time it<br />
11 was, but Anthony Bruno, the owner <strong>of</strong> Runway, used to<br />
12 allow us to smoke cigars in there inside actually<br />
13 after a period <strong>of</strong> time.<br />
14 Q. So just to be sure, he was not a<br />
15 participant in the standing Thursday night dinners<br />
16 that you had with Mr. Coniglio and that group <strong>of</strong> men?<br />
17 A. No.<br />
18 Q. In your last deposition you described that<br />
19 you had different tiers <strong>of</strong> friends. You had a tier<br />
20 <strong>of</strong> friends that were like your A list. Those were<br />
21 the guys that were closest to you, like Ted Morse as<br />
22 an example.<br />
23 Then you had a tier <strong>of</strong> friends right<br />
24 underneath that that was like Mark Levinson.<br />
25 Where did <strong>Albert</strong> Peter fit into your tier
1 <strong>of</strong> friends?<br />
Page 20<br />
2 A. Between the Ted Morse group and the Mark<br />
3 Levinson group, but closer to the Ted Morse group.<br />
4 Q. So he was actually one <strong>of</strong> your absolute<br />
5 closest friends then.<br />
6 Is that a fair statement?<br />
7 A. Yes. For the bulk <strong>of</strong> the time we knew each<br />
8 other, yes.<br />
9 Q. In paragraph 22 (c) the <strong>Trustee</strong> alleges<br />
10 that Peter discussed purchasing a home next door to<br />
11 the <strong>Rothstein</strong>s.<br />
12 Is that correct?<br />
13 A. Yes. At the time that we were living on<br />
14 Castilla Isle he had looked at the home right next<br />
15 door, or down the street.<br />
16 It might have been actually across the<br />
17 street or down the street, but yes.<br />
18 Q. Paragraph 22 (d) says that you became<br />
19 Mr. Peter's personal legal counsel.<br />
20 Is that correct?<br />
21 A. Yes.<br />
22 Q. What type <strong>of</strong> matters did you give him<br />
23 counsel on?<br />
24 A. I gave him counsel on ---<br />
25 Q. What I don't want you to do, as odd as
1 this sounds even with Mr. Peter's counsel not being<br />
Page 21<br />
2 present, I don't want you to tell me the advice you<br />
3 gave him. I'm just asking generally the type <strong>of</strong><br />
4 matters you did give him ---<br />
5 A. Financially ---<br />
6 Q. Meaning -- I'm sorry. I spoke over you.<br />
7 A. Go ahead.<br />
8 Q. What I don't want you to do is divulge<br />
9 attorney/client communications.<br />
10 A. I understand.<br />
11 Marital issues, property issues, financial<br />
12 issues, business issues.<br />
13 Q. When you say "property issues," did you<br />
14 discuss with him -- how do I get into this -- did you<br />
15 discuss asset protection with him?<br />
16 Was that a topic <strong>of</strong> your consultation with<br />
17 him?<br />
18 A. It was, but it was more him telling me<br />
19 about what he was doing than me counselling on it.<br />
20 <strong>Albert</strong> is a fairly bright finance guy and<br />
21 it was less me giving him advice and more him telling<br />
22 me what he was doing.<br />
23 Q. Did you have an engagement letter that you<br />
24 executed with Mr. Peter as his personal counsel?<br />
25 A. No, sir.
1 Q. Did you ever open a file for Mr. Peter as<br />
Page 22<br />
2 his lawyer?<br />
3 A. I may have. I don't recall.<br />
4 Q. Do you recall if Mr. Peter ever paid RRA<br />
5 any legal fees?<br />
6 A. That's a loaded question. I certainly<br />
7 received ---<br />
8 Q. In his personal capacity.<br />
9 A. I don't recall him ever paying us personal<br />
10 legal fees.<br />
11 Q. Were you, indeed, his lawyer or were you<br />
12 in the place <strong>of</strong>, for instance, we'll call it personal<br />
13 counsel, a friend that gave him advice as opposed to<br />
14 being his lawyer, per se?<br />
15 A. As I sit here today, I don't recall ever<br />
16 representing him specifically in a legal matter.<br />
17 I believe that my law firm handled a real<br />
18 estate closing for him at one point in time, but I'm<br />
19 not even certain <strong>of</strong> that.<br />
20 You know, if you're asking me did I<br />
21 consider myself his legitimate lawyer, I don't even<br />
22 know how to answer that because there was so much<br />
23 illegitimate activity mixed in with anything<br />
24 legitimate we might have been talking about, I<br />
25 can't tell you.
1 Q. Let's just focus in on the issue <strong>of</strong> your<br />
Page 23<br />
2 serving as his lawyer.<br />
3 I'm looking at your state <strong>of</strong> mind.<br />
4 Were you his lawyer?<br />
5 A. Not his legitimate lawyer, because in my<br />
6 state <strong>of</strong> mind the way I thought about it I was<br />
7 Silversea's lawyer, so from a legitimate standpoint<br />
8 I couldn't have been Silversea's lawyer and his<br />
9 personal lawyer because I was representing him in a<br />
10 business capacity and there were times when his<br />
11 personal positions were in conflict with those <strong>of</strong><br />
12 Silversea.<br />
13 However, as you already know, I also took<br />
14 to advising him in a capacity that was to the<br />
15 detriment <strong>of</strong> Silversea and to his benefit.<br />
16 Q. That was on his termination. Correct?<br />
17 A. His termination and other things that were<br />
18 going on with Silversea where he was being questioned<br />
19 about things. I did render advice to him.<br />
20 Q. Was that on his expenses?<br />
21 A. In large part, yes.<br />
22 Q. Were there other areas, as well?<br />
23 A. Yes. He was -- when his affair with Diane<br />
24 DelValle became a very bad point with his bosses at<br />
25 Silversea I counseled him on how to handle that with
1 his bosses and how to handle it with Ms. DelValle.<br />
Page 24<br />
2 Q. Is your best understanding as to <strong>Albert</strong>'s<br />
3 state <strong>of</strong> mind that he viewed you as his personal<br />
4 counsel?<br />
5 A. Yes.<br />
6 Q. With respect to his affair with<br />
7 Ms. DelValle while she was employed at Silversea were<br />
8 you requested by Silversea to render legal advice as<br />
9 to what to do about <strong>Albert</strong>'s relationship with her?<br />
10 A. I was.<br />
11 Q. And did you give him advice on how to<br />
12 handle the issue?<br />
13 A. I did.<br />
14 Q. I want the record to be clear. I don't<br />
15 feel comfortable asking you the nature <strong>of</strong> the advice<br />
16 so I'm not going to, all right, but as I understood<br />
17 your testimony from a few moments ago you also<br />
18 provided Mr. Peter with advice. Correct?<br />
19 A. Yes. I did.<br />
20 Q. Was that ---<br />
21 A. I provided ---<br />
22 Q. Was that in a legal or friendship capacity?<br />
23 A. Well, I was providing him advice because I<br />
24 was his friend and because we were co-conspirators in<br />
25 a criminal enterprise.
1 I was providing him legal advice that was<br />
Page 25<br />
2 contrary to the best interests <strong>of</strong> Silversea, if that<br />
3 helps explain it a little bit better.<br />
4 Q. Yes. Only because it's a gray area and<br />
5 I don't believe there was an attorney/client<br />
6 relationship established between you and Mr. Peter,<br />
7 but I don't want to run the risk <strong>of</strong> asking questions<br />
8 that would even potentially contaminate this<br />
9 transcript, so I'm not going to ask those kinds <strong>of</strong><br />
10 questions with respect to Mr. Peter either, at least<br />
11 as <strong>of</strong> right now.<br />
12 Okay. I'm going to address the issue in<br />
13 subparagraph 22 (e) about this $403,000 payment to<br />
14 Mr. Peter later in this transcript, so I'm going to<br />
15 skip that.<br />
16 I'm also going to for now skip the Jewel<br />
17 River Cruises issue because I'm going to get to that.<br />
18 Subparagraph (g) says that you used your<br />
19 relationship with the Levinsons -- that's Mark and<br />
20 Robin Levinson at Levinson Jewelers -- to enable<br />
21 Mr. Peter to buy jewelry from Levinson at a discount.<br />
22 Is that an accurate statement?<br />
23 A. Yes.<br />
24 Q. Can you describe the facts about that<br />
25 transaction or transactions?
1 A. <strong>Albert</strong> had asked me a bunch <strong>of</strong> times about<br />
2 jewelry and watches that I had purchased at<br />
3 Levinson's and asked if I was getting good prices. I<br />
4 told him I was. He asked if I could speak to them<br />
5 because he'd like to make some purchases from them <strong>of</strong><br />
6 a significant nature and I told him I would.<br />
7 I went and talked to Mark and Robin. I<br />
8 said this guy is a very close personal friend and<br />
9 very important to my business and I'd appreciate it<br />
10 if they would handle him on that basis, so they did.<br />
11 Q. Is my recollection correct that you<br />
12 actually did not ask the Levinsons for discounts as<br />
13 to the purchases <strong>of</strong> jewelry that you made for<br />
14 yourself?<br />
15 A. I never asked them for a discount for<br />
16 myself. Only for other people.<br />
17 Q. That was my next question, but did you ask<br />
18 them for a discount as to Mr. Peter?<br />
19 A. Yes, I did.<br />
20 Q. And to the best <strong>of</strong> your knowledge that<br />
21 discount was provided?<br />
22 A. To the best <strong>of</strong> my knowledge, yes.<br />
23 Q. I think that we've already covered<br />
24 paragraphs 22 (h) and 22 (i), except I will add that<br />
25 the paragraph 22 (i) reference that you <strong>of</strong>ten<br />
Page 26
1 mutually addressed Mr. Peter and vice-versa with the<br />
2 title "brothers."<br />
3 Do you agree with that?<br />
4 A. Yes, sir.<br />
5 Q. Paragraph 22 (j) states that you <strong>of</strong>ten<br />
6 provided Mr. Peter with false alibis to Mrs. Peter<br />
7 providing cover for Mr. Peter's time with Tatiana<br />
8 Yoel.<br />
9 Is that a correct statement?<br />
10 A. Yes, sir.<br />
11 Q. How many times would you say you did that?<br />
12 A. I have to answer that this way.<br />
13 I was asked dozens <strong>of</strong> times to cover for<br />
14 him. There were only a handful <strong>of</strong> times when I<br />
15 actually had to put the cover into play.<br />
16 (Short Break)<br />
17 Q. Mr. <strong>Rothstein</strong>, if you would go to the<br />
18 documents that we provided you starting with the<br />
19 document Bates stamp <strong>of</strong> T-AP00090.<br />
20 A. I got it.<br />
21 Q. We're going to spend some time now talking<br />
22 about invoices that were sent by RRA to Silversea.<br />
23 A. Okay.<br />
24 Q. Now, I think that you have acknowledged<br />
25 that you were counsel to Silversea.<br />
Page 27
1 That's pretty clear. Right?<br />
Page 28<br />
2 A. That's correct.<br />
3 Q. And in connection with serving as counsel<br />
4 it would be the business practice <strong>of</strong> RRA to send<br />
5 legal fee statements to Silversea for services<br />
6 rendered. Correct?<br />
7 A. That's correct.<br />
8 Q. Take a look at the exhibit Bates stamped<br />
9 T-AP00090.<br />
10 I'm going to mark for the record here --<br />
11 and we provided the court reporter -- as Composite<br />
12 Exhibit 1 -- that whole series <strong>of</strong> invoices.<br />
13 That's just for the record.<br />
14 (Whereupon, the documents referred to<br />
15 were marked Plaintiff's Composite Exhibit No. 1 for<br />
16 Identification.)<br />
17 Q. Are you familiar with this legal fee<br />
18 statement?<br />
19 A. Yes, sir.<br />
20 Q. What was the business practice <strong>of</strong> RRA in<br />
21 connection with preparing -- I want you to listen<br />
22 closely -- preparing authentic legal fee statements<br />
23 to Silversea?<br />
24 By that I mean statements that accurately<br />
25 reflect time performed for the client along with the
1 dollar amount attributable to that time.<br />
Page 29<br />
2 A. The work would be performed. The time<br />
3 entry would either be placed on a handwritten<br />
4 timesheet and then inputted by a billing person into<br />
5 our billing system, or once we had the billing<br />
6 s<strong>of</strong>tware where the lawyer could enter it directly,<br />
7 the lawyer would enter the time directly.<br />
8 Pre-bills would be printed up. They would<br />
9 be given to the supervising lawyer, which was either<br />
10 me or another lawyer assisting the other lawyer<br />
11 working on it, and ultimately all the bills for<br />
12 Silversea would come to me.<br />
13 I would review the bills and then<br />
14 ultimately I would have them delivered to Silversea.<br />
15 Q. So you have before you as part <strong>of</strong> Composite<br />
16 Exhibit 1 -- take a look at page 90 again.<br />
17 A. I am.<br />
18 Q. That would reflect from your perspective<br />
19 legitimate time that was performed by Melissa Lewis<br />
20 is the top four entries. Correct?<br />
21 A. Correct.<br />
22 Q. Then underneath there's two entries that<br />
23 you put in for 11.8 hours on working on employee<br />
24 handbook.<br />
25 Would that be legitimate time?
1 A. That's correct. Yes, sir.<br />
Page 30<br />
2 Q. And then there's a balance <strong>of</strong> work that<br />
3 was performed by Ms. Lewis and you, and the total fee<br />
4 broken down on an hourly rate basis you'll see was<br />
5 $8,618.00.<br />
6 Did you agree with that?<br />
7 A. I do.<br />
8 Q. And that would be an invoice that would<br />
9 reflect actual time and legitimate billing for<br />
10 Silversea. Correct?<br />
11 A. That's correct, sir.<br />
12 Q. Now, if you'd be kind enough to please turn<br />
13 to page 92.<br />
14 Actually, go back for one quick second.<br />
15 Page 90 -- do you see that's an invoice<br />
16 dated July 10, 2006?<br />
17 A. Yes, sir.<br />
18 Q. Now take a look at page 92.<br />
19 That's an invoice that's also dated<br />
20 July 10, 2006. Correct?<br />
21 A. Yes, sir.<br />
22 Q. Now we're going to go back and forth a<br />
23 little bit here to make sure the record is clear.<br />
24 At page 90 you'll see that that is invoice<br />
25 number 66531?
1 A. Yes, sir.<br />
Page 31<br />
2 Q. And then page 92 is invoice number, also,<br />
3 66531. Correct?<br />
4 A. Yes.<br />
5 Q. Now what I'd like you to do is take a look<br />
6 at the time entries that are reflected on pages 90<br />
7 and 91 for the time period <strong>of</strong> June 13, 2006 to<br />
8 June 30, 2006, and compare the language that's<br />
9 located on pages 92 and 93 -- just the language --<br />
10 and tell me if you agree that it is verbatim<br />
11 identical.<br />
12 A. It appears to be. Yes, sir.<br />
13 MR. LICHTMAN: I'd like the record to<br />
14 reflect, because this is not a video deposition, that<br />
15 the witness took approximately a minute to compare<br />
16 the documents.<br />
17 Now you'll note that at page 91 the total<br />
18 fee charged was $8,618. Do you see that?<br />
19 A. I do.<br />
20 Q. And you'll see at page 93 the total time<br />
21 charged was $23,336. Do you see that?<br />
22 A. Yes, sir.<br />
23 Q. So you have two invoices with the same time<br />
24 entries, but one is for $8600 and the other is for<br />
25 $23,000.
1 How do you explain the difference in the<br />
Page 32<br />
2 invoices?<br />
3 A. The difference is the money that we stole<br />
4 with <strong>Albert</strong> Peter.<br />
5 Q. What do you mean by that?<br />
6 A. We were engaged in a scheme with <strong>Albert</strong><br />
7 Peter to embezzle money from Silversea utilizing<br />
8 fraudulent legal bills, and what would occur is the<br />
9 following: In this particular circumstance we<br />
10 printed up a real bill, which was the one which<br />
11 actually has the time entries on it with the people<br />
12 who performed it. We then had the bill redone by<br />
13 someone, they hand did it on the system, without the<br />
14 time entries.<br />
15 We used a format that did not have the<br />
16 biller or the time entry. We discussed how much we<br />
17 were going to bill with <strong>Albert</strong> Peter. We printed up<br />
18 the forged bill with the bumped amount and the bills<br />
19 were always hand-delivered to Mr. Peter, and on this<br />
20 particular occasion and on some others we gave him<br />
21 both bills -- the one with the entries and the one<br />
22 that did not have the entries -- the fraudulent<br />
23 bill -- so that he could see the amount specifically<br />
24 that we actually did and how much we bumped --<br />
25 Q. Was this the ---
1 A. -- so that he could see it.<br />
Page 33<br />
2 Q. I'm sorry. Were you finished?<br />
3 A. No. So that he could see how much the bump<br />
4 was so he knew how much to ask us for back.<br />
5 Q. Was this the business practice that you<br />
6 engaged in with Mr. Peter for every invoice where<br />
7 there would be an invoice with legitimate time that<br />
8 would reflect the hourly charges -- the hours billed<br />
9 -- the charges for those hourly charges -- and then a<br />
10 similar or identical invoice where those entries,<br />
11 such as the hours and charges, were deleted?<br />
12 A. It would, and it would also have been --<br />
13 there are -- should be a series <strong>of</strong> bills that don't<br />
14 have a real corresponding bill that were also<br />
15 fraudulent, so both. Yes.<br />
16 Q. I'm going to get to those.<br />
17 A. Okay.<br />
18 Q. Whose idea was it to come up with this<br />
19 scheme to pad the bills and submit them to Silversea<br />
20 for payment?<br />
21 A. <strong>Albert</strong> and mine.<br />
22 Q. Do you remember how it came about?<br />
23 A. At some point in time <strong>Albert</strong> was discussing<br />
24 with me his need for additional moneys to assist him<br />
25 with payment <strong>of</strong> one or more <strong>of</strong> his mistresses and
1 other things that he needed money for over and above,<br />
2 I guess, his compensation with Silversea.<br />
3 Q. Besides his mistresses what other things<br />
4 did he need money for?<br />
5 A. Things that he wanted to buy -- cars and<br />
6 the like.<br />
7 Q. Rock star lifestyle?<br />
8 A. Yes. He definitely lived the rock star<br />
9 lifestyle.<br />
10 Q. To digress for one moment, with respect to<br />
11 Mr. Peter, what do you mean by rock star lifestyle?<br />
12 A. He lived the life <strong>of</strong> a flamboyant Swiss<br />
13 banker. He chartered jets. He bought a lot <strong>of</strong> cars.<br />
14 He bought a lot <strong>of</strong> jewelry. He wore expensive<br />
15 clothes. He had homes in Switzerland and Florida.<br />
16 He went to very nice restaurants.<br />
17 I mean, he lived a very, very expensive<br />
18 life far exceeding what he was earning at Silversea.<br />
19 Q. Going back to these invoices, who knew <strong>of</strong><br />
20 this fraudulent billing scheme besides you and<br />
21 Mr. Peter?<br />
22 A. At what point in time?<br />
23 Q. Starting at the beginning, and then you can<br />
24 tell me if it changed, when it changed, and who else<br />
25 knew.<br />
Page 34
1 A. In the beginning it was me, <strong>Albert</strong> Peter,<br />
Page 35<br />
2 Diane DelValle, Irene Stay, Debra Villegas. I don't<br />
3 know who our billing clerk was at the time that was<br />
4 handling those bills -- you'd have to go back and see<br />
5 who the input clerk was -- but that particular<br />
6 person's knowledge it would just -- that person would<br />
7 not necessarily know that it was a fraud. They would<br />
8 just see the change in the bill and the increase in<br />
9 the amount, but the people that I named already,<br />
10 those people were at that point in time aware that<br />
11 there was a fraud going on at Silversea.<br />
12 Q. That would be from the beginning --<br />
13 correct -- if I understand your testimony?<br />
14 A. From the very beginning.<br />
15 Q. Is there a paper trail that I would be<br />
16 able to find that would link this to Irene Stay or<br />
17 Ms. Villegas other than the two documents in front<br />
18 <strong>of</strong> you, being the statements?<br />
19 A. Sure. At various points in time I actually<br />
20 sent entries to Ms. Villegas to actually create a<br />
21 bill outside our billing system.<br />
22 Q. Those are the fake invoices?<br />
23 A. Yes. Not all <strong>of</strong> them. Some <strong>of</strong> the fake<br />
24 invoices were done on our time billing system. Some<br />
25 were just typed up by Deb on our system.
1 Additionally, those invoices would then be<br />
2 forwarded either by e-mail or in-person to Irene so<br />
3 she knew how much money to expect.<br />
4 You should also find e-mails from me to<br />
5 Irene and Irene back to me asking how much money I<br />
6 needed in the accounts for various things and then me<br />
7 telling her how much I was going to bill Silversea to<br />
8 make sure we had enough money to cover it.<br />
9 Q. Did Melissa Lewis, who was performing<br />
10 services on any <strong>of</strong> these bills, know what you were<br />
11 doing?<br />
12 A. No, sir.<br />
13 Q. I have a general understanding that Steve<br />
14 Lippman worked on some Silversea matters as well.<br />
15 Is that correct?<br />
16 A. Later on, yes, sir.<br />
17 Q. Did he have any involvement with respect to<br />
18 alteration <strong>of</strong> legal fee statements?<br />
19 A. At the very end, yes.<br />
20 Q. What was his involvement?<br />
21 A. To the best <strong>of</strong> my recollection at the very<br />
22 end <strong>of</strong> our relationship not with Silversea -- it's<br />
23 not the end <strong>of</strong> our relationship -- at the very end <strong>of</strong><br />
24 <strong>Albert</strong>'s relationship with Silversea over the period<br />
25 <strong>of</strong> time that Silversea was attempting to get rid <strong>of</strong><br />
Page 36
1 <strong>Albert</strong> Peter.<br />
Page 37<br />
2 This is the one case for certain that I'm<br />
3 certain Mr. Lippman assisted me in, and it's the one<br />
4 case for certain I know that he was aware that we<br />
5 were sending fraudulent bills over to Silversea,<br />
6 because we were on both sides <strong>of</strong> that transaction.<br />
7 We were representing Silversea and we were advising<br />
8 Mr. Peter as to how best to extricate himself from<br />
9 the difficult position with Silversea.<br />
10 Mr. Lippman was, in fact, the person that<br />
11 traveled to London with me to do the final<br />
12 negotiations on behalf <strong>of</strong> Silversea while we were<br />
13 improperly advising <strong>Albert</strong> at the same time as to how<br />
14 to avoid potential civil and criminal problems with<br />
15 Silversea.<br />
16 Q. I'm going to spend some time on Mr. Peter's<br />
17 termination, but tell me how that answer you just<br />
18 gave ties Mr. Lippman to having knowledge and<br />
19 involvement in fraudulent billing.<br />
20 A. Because we would enter the time -- the real<br />
21 time that we were spending on Mr. Peter's separation<br />
22 from the company and then I would give the bill to<br />
23 Mr. Lippman and ask him to create additional entries<br />
24 that made sense, okay, from a general business<br />
25 standpoint -- to inflate the bill -- because at this
1 point in time our bills are no longer being reviewed<br />
2 by <strong>Albert</strong> Peter, who reviewed them cursorily at best.<br />
3 You're talking being having our bills now<br />
4 being reviewed by Amerigo Perasso and Manfredi<br />
5 Lefebvre at the very top <strong>of</strong> the food chain at<br />
6 Silversea, so we had to be very careful as to what<br />
7 we were sending over in the form <strong>of</strong> bills, and<br />
8 Mr. Lippman assisted me.<br />
9 Wait. Let me finish that thought.<br />
10 The other way you know that Mr. Lippman was<br />
11 involved in it is we are over in London. We are<br />
12 going to meetings with Manfredi and Amerigo advising<br />
13 them as to how this thing should play out, and we're<br />
14 billing them for that, legitimate billing.<br />
15 We are then spending a significant amount<br />
16 <strong>of</strong> time with <strong>Albert</strong> telling him what's going on<br />
17 behind the scenes, breaching attorney/client<br />
18 privilege, telling <strong>Albert</strong> what we're discussing with<br />
19 Manfredi and Amerigo and what they intend to do,<br />
20 crafting a scheme to extricate him from the problems<br />
21 that he's created, and then Mr. Lippman and I are<br />
22 billing Silversea for that time as if it's<br />
23 Silversea's time.<br />
24 Q. Meaning the time that Mr. Lippman and you<br />
25 were spending with Mr. Peter you were billing to<br />
Page 38
1 Silversea?<br />
Page 39<br />
2 A. Yes, and then when we returned home, when<br />
3 we were looking at the amounts <strong>of</strong> the bills, we then<br />
4 inflated the time. We looked at it and we -- let's<br />
5 say excess value billed.<br />
6 Q. Padded?<br />
7 A. Because we knew at that point in time,<br />
8 Mr. Lichtman, that our lifespan with Silversea was<br />
9 probably coming to a close, so we wanted to get as<br />
10 much money out <strong>of</strong> them as possible, but it needed to<br />
11 look legitimate because we did not have the<br />
12 protection <strong>of</strong> <strong>Albert</strong> any longer.<br />
13 Q. When you say the "protection <strong>of</strong> <strong>Albert</strong>,"<br />
14 what do you mean by that?<br />
15 A. All our bills were approved to my knowledge<br />
16 by <strong>Albert</strong> Peter. Various bills were ultimately<br />
17 reviewed by the home <strong>of</strong>fice in Monaco, but any time<br />
18 there was a question as to the billing <strong>Albert</strong> always<br />
19 took up for our position.<br />
20 We never ended up having an ultimate<br />
21 billing problem with Silversea. Our bills were<br />
22 always paid.<br />
23 Q. And he took up with your position ---<br />
24 A. To the best <strong>of</strong> my recollection.<br />
25 Q. And he took up with your position from the
1 best <strong>of</strong> your knowledge because you had arranged with<br />
2 him to split the illegal money that you had bilked<br />
3 Silversea out <strong>of</strong> from your fraudulent billing.<br />
4 Is that correct?<br />
5 A. We weren't splitting it down the middle,<br />
6 but, yes. He was receiving compensation <strong>of</strong> an<br />
7 illegal fashion from the money that we were<br />
8 embezzling from Silversea with his assistance.<br />
9 Q. So, to be sure now, going back to Bates<br />
10 stamped pages 91 and 93 the difference between the<br />
11 sum <strong>of</strong> $23,336 on page 93 and $8,618 on 91 would be<br />
12 the amount <strong>of</strong> money that you stole from Silversea and<br />
13 that Mr. Peter later participated in receiving in<br />
14 some fashion or another. Correct?<br />
15 A. Correct.<br />
16 Q. I'm going to do some other invoices a<br />
17 little quicker, but take a look now at pages 94 and<br />
18 95.<br />
19 A. Okay.<br />
20 Q. You'll see that pages 94 and 95 are for an<br />
21 invoice dated August 24, 2006. The invoice number is<br />
22 67878, and if you peruse the entries there's not very<br />
23 many <strong>of</strong> them. It totals $4,247 on page 95.<br />
24 Do you see that?<br />
25 A. I do.<br />
Page 40
1 Q. Then if you take a look at page 96, it's<br />
Page 41<br />
2 an invoice also <strong>of</strong> August 24, 2006. It's the same<br />
3 invoice number as on page 94.<br />
4 Do you agree with that?<br />
5 A. Yes.<br />
6 Q. Do you agree that the entries on page 96<br />
7 are the same as those on pages 94 and 95?<br />
8 A. They appear to be.<br />
9 Q. Except this bill, instead <strong>of</strong> being $4,247,<br />
10 is $44,247.<br />
11 Do you see that?<br />
12 A. That's correct.<br />
13 Q. This is another fraudulent bill?<br />
14 A. Yes, sir.<br />
15 Q. Take a look at page 98.<br />
16 A. Yes, sir.<br />
17 Q. That's an invoice dated September 5, 2006,<br />
18 invoice number 68243. There's one entry by Melissa<br />
19 Lewis for $248.<br />
20 Do you see that?<br />
21 A. I do.<br />
22 Q. Take a look at page 99.<br />
23 That invoice is also dated September 5,<br />
24 2006. It's the same invoice number, 68243, except<br />
25 this bill instead <strong>of</strong> being $248 is $47,123.32?
1 A. That's correct.<br />
Page 42<br />
2 Q. Another fraudulent bill. Correct?<br />
3 A. Yes, sir.<br />
4 Q. And your business practice with respect to<br />
5 these invoices when you submitted them was to give<br />
6 them to Mr. Peter. Correct?<br />
7 A. Hand-delivered by me or a member <strong>of</strong> my<br />
8 staff. Yes.<br />
9 Q. And what happened after you gave these<br />
10 invoices to Mr. Peter?<br />
11 A. We were frequently paid the same day or<br />
12 within a day or two after.<br />
13 Q. And to be sure your practice was also to<br />
14 give him the original bill and the fake bill.<br />
15 Correct?<br />
16 A. When there was an original and a fake we<br />
17 furnished both to him.<br />
18 Q. And Mr. Peter typically consulted with you<br />
19 in what the amount <strong>of</strong> the fake bill would be -- the<br />
20 inflated bill?<br />
21 A. I would have a conversation with him about<br />
22 what the market could bear at the current point in<br />
23 time and then we would decide on the approximate<br />
24 amount to inflate the bill.<br />
25 Q. What were the factors that you discussed
1 with him in the amount <strong>of</strong> time that you could inflate<br />
2 a bill on?<br />
3 A. How much scrutiny he was getting from<br />
4 Monaco, how much money Silversea had at the point in<br />
5 time, how much money he needed, how much money we<br />
6 needed.<br />
7 Q. The Lindsay case -- Silversea Cruises, LTD<br />
8 versus Robin Lindsay -- that was a real case.<br />
9 Correct?<br />
10 A. Yes.<br />
11 Q. So at page 109, as an example, if you would<br />
12 go to that.<br />
13 Are you there?<br />
14 A. Okay.<br />
15 Q. Pages 109 through 116 would be what a<br />
16 legitimate bill for services rendered would look like<br />
17 on this real case. That's the Lindsay case.<br />
18 Correct?<br />
19 That fee is $6,319?<br />
20 A. Yes.<br />
21 Q. And then starting at page 117 and<br />
22 continuing through 122, that would be your fictitious<br />
23 invoice. Correct?<br />
24 A. One second. I'm getting there.<br />
25 Q. Okay.<br />
Page 43
1 A. Yes.<br />
Page 44<br />
2 Q. I'm going to skip the rest <strong>of</strong> them for now<br />
3 because I think we have a good enough record there,<br />
4 but let us now address what we'll call what I believe<br />
5 are totally fake invoices.<br />
6 If you would be kind enough to turn to<br />
7 page 137, and I'm going to mark documents that are<br />
8 from Bates stamp range 137 through and including 200<br />
9 as Composite Exhibit 2.<br />
10 (Whereupon, the documents referred to<br />
11 were marked Plaintiff's Composite Exhibit No. 2 for<br />
12 Identification.)<br />
13 A. Okay.<br />
14 Q. You'll see that this is an invoice dated<br />
15 January 13, 2006.<br />
16 A. Yes.<br />
17 Q. That reflects a bill -- it's invoice number<br />
18 63401 -- it's titled Confidential Special Projects<br />
19 and the amount <strong>of</strong> the bill is $150,000.<br />
20 A. Yes.<br />
21 Q. Would you describe to the best <strong>of</strong> your<br />
22 recollection what this bill represents?<br />
23 A. Nothing.<br />
24 Q. When you say "nothing," meaning that there<br />
25 were no legal services performed in connection with
1 this bill?<br />
Page 45<br />
2 A. To the best <strong>of</strong> my recollection there were<br />
3 no legal services performed in connection with this<br />
4 bill.<br />
5 Q. I had seen some e-mails that referenced<br />
6 that you were indeed looking at some confidential<br />
7 information for Mr. Lefebvre.<br />
8 Did you ever have any legitimate billing<br />
9 as it pertained to investigating confidential matters<br />
10 for either Mr. Lefebvre or Silversea?<br />
11 A. To the best <strong>of</strong> my recollection, no.<br />
12 Q. So the time entry to the best <strong>of</strong> your<br />
13 recollection placed within the body <strong>of</strong> document 137<br />
14 is all made up. Is that correct?<br />
15 A. Yes. We may have been actually looking<br />
16 at his computers for some things, but if it was it<br />
17 would have been <strong>of</strong> an illegal nature.<br />
18 Q. What does that mean when you say "looking<br />
19 at his computers for some things"?<br />
20 A. I might have sent somebody over there with<br />
21 a specific purpose <strong>of</strong> determining whether or not, for<br />
22 example, Monaco was able to read his e-mails, whether<br />
23 someone was copying his stuff and sending it to<br />
24 Monaco, whether his secretary could read his stuff,<br />
25 whether people were copying files, but it was all for
1 the protection <strong>of</strong> the embezzlement scheme and<br />
Page 46<br />
2 protection <strong>of</strong> his separate embezzlement scheme that<br />
3 he was using through his American Express card that<br />
4 that would have been done.<br />
5 There were no legitimate services provided<br />
6 to Silversea. This was all concocted.<br />
7 Q. Was the person that you sent over to<br />
8 Silversea to look at the computer for those purposes<br />
9 that you just enumerated -- was that Bill Corte,<br />
10 Curtis Renie or Rey Leon?<br />
11 A. I don't know who it was actually. I'd have<br />
12 to know timeframe -- that I actually sent someone<br />
13 over there to do it.<br />
14 I don't even know that I actually sent<br />
15 someone over there at this point in time.<br />
16 Q. Your recollection, though, is that you<br />
17 did send somebody over to do some type <strong>of</strong> forensic<br />
18 computer analysis as to whether or not <strong>Albert</strong>'s<br />
19 computer had been imaged for some purposes?<br />
20 A. Yes, but not necessarily at this point in<br />
21 time.<br />
22 In other words, Mr. Lichtman, this could<br />
23 be a completely fictitious billing or it could be a<br />
24 -- let's call it a semi-fictitious billing where we<br />
25 might have spent a couple <strong>of</strong> hours time, but I can
1 tell you that regardless <strong>of</strong> how much time, if someone<br />
2 did go over there and look at his computers, number<br />
3 one, it wasn't for Silversea, it was to protect our<br />
4 schemes, and, number two, it would have been a couple<br />
5 <strong>of</strong> hours, not $150,000 worth <strong>of</strong> time or expense.<br />
6 Q. Let me ask a question. I want to go back<br />
7 just briefly to Composite Exhibit 1. This will also<br />
8 relate to Composite Exhibit 2.<br />
9 You agree that pro<strong>of</strong> <strong>of</strong> payment <strong>of</strong> these<br />
10 invoices would be best reflected by the ledgers that<br />
11 RRA maintained with respect to cross referencing<br />
12 invoices and payments received by a client?<br />
13 A. Can you say that again?<br />
14 Q. Would you agree that business records<br />
15 from the accounting servers <strong>of</strong> RRA would contain the<br />
16 information to show that all <strong>of</strong> these invoices were,<br />
17 in fact, paid?<br />
18 A. That, in combination with Silversea's<br />
19 records as to what it was paid. Perhaps the<br />
20 cancelled checks.<br />
21 I seem to have a vague recollection that<br />
22 some <strong>of</strong> these checks may have been deposited into<br />
23 other accounts, but I'm not certain <strong>of</strong> that one way<br />
24 or the other.<br />
25 Q. With respect to this $150,000 bill, that's<br />
Page 47
1 a fairly significant billing.<br />
Page 48<br />
2 You would agree with that, wouldn't you?<br />
3 A. Yes.<br />
4 Q. Do you recall the circumstances on drafting<br />
5 this particular bill and how the $150,000 fee was<br />
6 determined?<br />
7 A. I don't recall the specifics, but if you<br />
8 look at all our billing it's not an unusual amount<br />
9 once we really got going with this fraud.<br />
10 Q. You were previously asked and described<br />
11 circumstances about <strong>Albert</strong> Peter being complicit in<br />
12 formulating these bills.<br />
13 Is that the same thing with respect to<br />
14 these totally fake invoices?<br />
15 A. Yes, sir.<br />
16 Q. Describe for me, just so the record is<br />
17 clear, Mr. Peter's involvement with respect to the<br />
18 fabrication <strong>of</strong> invoices from scratch.<br />
19 A. Okay. Several different circumstances.<br />
20 I would be sitting with Mr. Peter and talk<br />
21 to him and say, "I need money. How much can I bill,"<br />
22 and he would tell me.<br />
23 There would be other times when I'd be<br />
24 sitting with him and he'd tell me that he needs money<br />
25 and he would ask me if I could please send a bill out
1 and then get him the money in one form or another.<br />
Page 49<br />
2 That might occur in person or over the<br />
3 telephone, but that's the basic way that the<br />
4 completely fraudulent bills were created.<br />
5 Q. You earlier described the circumstances<br />
6 upon which Mr. Peter said he needed money.<br />
7 What were the circumstances that you needed<br />
8 money?<br />
9 A. Law firm bills, personal bills,<br />
10 co-conspirator bills, Ponzi money.<br />
11 Q. Did Mr. Peter know that you were engaged in<br />
12 the Ponzi scheme?<br />
13 A. He knew that I was engaged in a fraud. I<br />
14 don't know that you could say that he knew it was a<br />
15 Ponzi scheme.<br />
16 We never had discussions <strong>of</strong> that nature.<br />
17 Q. You didn't typically hold those discussions<br />
18 with hardly anyone, though. Correct?<br />
19 That was not a phrase that you used in<br />
20 speaking with people?<br />
21 A. In the entire time that I was conducting<br />
22 the Ponzi scheme the word never came out <strong>of</strong> my mouth<br />
23 meeting with any co-conspirator as to what we were<br />
24 doing.<br />
25 I limited the conversation to what people
1 needed to do and needed to know, and I limited their<br />
2 contact with each other as best as I possibly could.<br />
3 Q. In addition to these fraudulent bills tell<br />
4 me what other activities <strong>Albert</strong> to the best <strong>of</strong> your<br />
5 knowledge knew about that were fraudulent.<br />
6 A. Say that again.<br />
7 Q. What other fraudulent activities did <strong>Albert</strong><br />
8 know that you were engaged in besides the fraudulent<br />
9 billing to Silversea?<br />
10 A. He knew that we were using illegal methods<br />
11 to assist him in keeping his embezzlement from the<br />
12 company and our embezzlement along with him from<br />
13 being detected by Manfredi Lefebvre.<br />
14 Q. I know there was a point in time where he<br />
15 participated with you in bridge loans immediately<br />
16 following his departure from Silversea.<br />
17 Did he know while he was at Silversea that<br />
18 you were doing bridge loans?<br />
19 A. You know, I don't remember the timeframe,<br />
20 Mr. Lichtman, but there was a point in time when he<br />
21 may or may not have known that the bridge loans or<br />
22 deals were fictitious, and then there was a point in<br />
23 time when he did know that.<br />
24 Q. How do you know that -- that he did know<br />
25 they were fictitious?<br />
Page 50
1 A. Because I discussed it with him.<br />
Page 51<br />
2 Q. Do you recall the circumstances <strong>of</strong> when you<br />
3 discussed it with him and where you were?<br />
4 A. I do not.<br />
5 Q. What is it you recall discussing with him?<br />
6 A. It was a point in time when he actually<br />
7 just said to me -- listen, he was a very, very bright<br />
8 financial guy, as I said previously.<br />
9 I recall the conversation with him where he<br />
10 basically said to me, "I know that this can't be<br />
11 real." He said in all his years as a Swiss banker<br />
12 he'd never seen any such thing -- not in any market,<br />
13 not in any business.<br />
14 Q. Does the "this" ---<br />
15 A. I laughed and I said, "Are you making<br />
16 money?"<br />
17 And he said, "Yes."<br />
18 I said, "Are you happy?"<br />
19 He said, "Yes."<br />
20 I said, "So don't worry yourself with what<br />
21 I'm doing."<br />
22 End <strong>of</strong> story.<br />
23 Q. Does the "this" pertain to the bridge loans<br />
24 that he was engaged in with you or does the "this"<br />
25 pertain to something else?
1 A. Yes. No. No. To the bridge loans.<br />
Page 52<br />
2 Q. Did he ever ---<br />
3 A. The deals. Whatever you want to call them.<br />
4 Q. Did he ever participate in any <strong>of</strong> the<br />
5 settlements with you, to the best <strong>of</strong> your<br />
6 recollection?<br />
7 A. Not with full deal packets, no.<br />
8 Q. Did he know you were engaged in them?<br />
9 A. You know, he knew I was doing business with<br />
10 hedge funds. I'd have to go back and look at the<br />
11 e-mail track to see if he thought I had ever told him<br />
12 about the settlement business premise, but he did<br />
13 know I was doing business with hedge funds.<br />
14 I remember seeing e-mails from Blandin and<br />
15 the like regarding getting lines <strong>of</strong> credit from hedge<br />
16 funds.<br />
17 Q. You mentioned earlier, like two minutes<br />
18 ago, Mr. Peter's embezzlement from the company.<br />
19 Are you alluding to his embezzlement<br />
20 through these fake invoices or is there a different<br />
21 embezzlement that you're referencing?<br />
22 A. Both.<br />
23 Q. What is the different -- the other part <strong>of</strong><br />
24 it?<br />
25 We have the invoices. What's part two?
1 MR. LICHTMAN: Uh-oh. A frozen screen.<br />
Page 53<br />
2 Can you hear us?<br />
3 MR. GOLDBERG: Frozen audio. Frozen<br />
4 screen.<br />
5 MR. LICHTMAN: We have a frozen screen.<br />
6 (Short Break, after which the<br />
7 deposition continued with Mr. LaVecchio out <strong>of</strong> the<br />
8 room)<br />
9 A. Where were we?<br />
10 Q. I'm going to proceed. I suspect that Larry<br />
11 is not going to care.<br />
12 He may be in a moment, in any event.<br />
13 A. Okay.<br />
14 Q. With respect to the embezzlement before the<br />
15 video got cut out I had asked you what part two was.<br />
16 Part one was the invoices.<br />
17 There was the fake invoices. There was<br />
18 Mr. Peter's use <strong>of</strong> his Silversea American Express<br />
19 card and expense account to fund a significant amount<br />
20 <strong>of</strong> personal expenses.<br />
21 (Whereupon, Mr. LaVecchio returned)<br />
22 And then there was his involvement with me<br />
23 in a scheme that was devised to prevent and avoid<br />
24 detection <strong>of</strong> both our embezzlement scheme and his<br />
25 expense account scheme and other things I suspect
1 that he was doing at Silversea by taking action to<br />
Page 54<br />
2 keep Mr. Lefebvre, the chairman <strong>of</strong> the board and<br />
3 major shareholder <strong>of</strong> the company, out <strong>of</strong> the United<br />
4 States and out <strong>of</strong> his hair. He did not want that<br />
5 interference.<br />
6 Q. I will get to the American Express card and<br />
7 Mr. Lefebvre's situation.<br />
8 I just wanted to make sure I understood<br />
9 that that was the circumstances surrounding the<br />
10 embezzlement.<br />
11 So let me go back, if I may. Do you still<br />
12 have before you <strong>Trustee</strong>'s documents -- you were on<br />
13 137 before.<br />
14 A. Yes.<br />
15 Q. Take a look at 139.<br />
16 A. Okay.<br />
17 Q. 139 is an invoice dated January 25, 2006,<br />
18 and that's an $80,000 bill.<br />
19 Is this a totally fraudulent invoice?<br />
20 A. Yes. It is actually us billing -- and I<br />
21 mean "us" -- meaning me, my firm and Mr. Peter --<br />
22 billing Silversea for us engaging in acts to keep him<br />
23 out <strong>of</strong> the country, so it was actually reverse, but<br />
24 there was never $80,000 <strong>of</strong> time spent on this<br />
25 particular topic as listed in this invoice.
1 Q. When you say keeping Mr. Lefebvre out <strong>of</strong><br />
Page 55<br />
2 the country, is that the reference to confidential<br />
3 services provided for Mr. Lefebvre regarding<br />
4 corporate security issues?<br />
5 A. Yes.<br />
6 Q. I am going to come back to that, so at<br />
7 some point we're going to come back to 139.<br />
8 It's labeled "confidential project."<br />
9 Actually, maybe now is as good a time as any to get<br />
10 into it.<br />
11 Confidential project. So the bill was<br />
12 being sent, and it's so confidential that even the<br />
13 client can't say what it is that you're doing. Huh?<br />
14 A. Well, when you're not doing anything or,<br />
15 actually, when you're doing certain things that you<br />
16 don't want the client to know you're doing, yes,<br />
17 "confidential" is the best word to use.<br />
18 Q. Was Mr. Lefebvre under the impression,<br />
19 though, that you were doing something to protect him<br />
20 with respect to the issues that you and Mr. Peter<br />
21 were engaged in in preventing him from coming into<br />
22 the country?<br />
23 A. Yes.<br />
24 Q. Now is a good time I guess. Then we will<br />
25 describe this.
1 Tell me what it was that Mr. Peter and you<br />
2 devised to keep Mr. Lefebvre out <strong>of</strong> the country.<br />
3 A. Mr. Peter explained to me that every time<br />
4 Mr. Lefebvre came into the country it interfered with<br />
5 our ability to engage in our embezzlement scheme. It<br />
6 interfered with his ability to maneuver expenses and<br />
7 the like, and whatever else he was doing at the<br />
8 company. It interfered with his let's call it<br />
9 lifestyle at the company, and he enlisted my services<br />
10 and services <strong>of</strong> other co-conspirators through me for<br />
11 the purpose <strong>of</strong> making Mr. Lefebvre believe that he<br />
12 had potential significant criminal legal problems in<br />
13 the United States and, thus, that he should not<br />
14 travel here.<br />
15 Q. What was your understanding <strong>of</strong> what<br />
16 Mr. Lefebvre knew in terms <strong>of</strong> him having this<br />
17 potential criminal exposure in the United States?<br />
18 A. That he was under investigation for<br />
19 participation in a prostitution ring and potentially<br />
20 some other financial issues involving his company.<br />
21 Q. With respect to the prostitution ring, to<br />
22 the best <strong>of</strong> your knowledge was Mr. Lefebvre involved<br />
23 in a prostitution ring?<br />
24 A. He was not involved in a prostitution ring.<br />
25 We came up with that based upon <strong>Albert</strong> telling me<br />
Page 56
1 that he frequented prostitutes when he was here, so<br />
Page 57<br />
2 we used that as a pressure point.<br />
3 Q. How did you use it as a pressure point?<br />
4 THE WITNESS: Mr. LaVecchio ---<br />
5 MR. LICHTMAN: Let me clarify something.<br />
6 I understand generally that there was some<br />
7 police activity involved. I've reached an agreement<br />
8 because I understand the sensitivity at the present<br />
9 time <strong>of</strong> divulging the name <strong>of</strong> any <strong>of</strong>ficers that may<br />
10 have been involved in this with you -- so would it be<br />
11 acceptable to say which department it was without<br />
12 getting into ---<br />
13 MR. LaVECCHIO: I think that would still<br />
14 cause a problem. I think if you could ---<br />
15 Q. Just say "the police" without saying which<br />
16 department.<br />
17 A. I enlisted the aid <strong>of</strong> a police <strong>of</strong>ficer who<br />
18 was on my payroll, so to speak, being paid by me to<br />
19 do various illegal acts on my behalf and on behalf <strong>of</strong><br />
20 my firm and on behalf <strong>of</strong> various clients and others<br />
21 to create a charade whereby we made Mr. Lefebvre<br />
22 believe that he was under a very serious<br />
23 investigation by law enforcement.<br />
24 We had this police <strong>of</strong>ficer come in uniform<br />
25 to the Silversea <strong>of</strong>fices and appear there and ask
1 for Mr. Lefebvre on multiple occasions.<br />
Page 58<br />
2 We had this same police <strong>of</strong>ficer call<br />
3 Mr. Lefebvre repeatedly on his cell phone. We had<br />
4 this same police <strong>of</strong>ficer call Mr. Lefebvre's<br />
5 secretary and his receptionist at Silversea asking<br />
6 for him. We had the police <strong>of</strong>ficer telling people<br />
7 that he had to find Mr. Lefebvre and that he was not<br />
8 going to stop until he was able to get ahold <strong>of</strong> him.<br />
9 Q. What was the period <strong>of</strong> time, approximately,<br />
10 that this took place over?<br />
11 A. More than a year. I don't recall the<br />
12 specific timeframe.<br />
13 Q. And who had knowledge and participated with<br />
14 you in this activity with respect to the police<br />
15 <strong>of</strong>ficer giving this information to Mr. Lefebvre?<br />
16 A. Me, <strong>Albert</strong> Peter, the police <strong>of</strong>ficer, Irene<br />
17 Stay, Debra Villegas and Stuart Rosenfeldt.<br />
18 Q. Were there any fraudulent legal documents<br />
19 that you drafted to give this alleged investigation<br />
20 legitimacy?<br />
21 A. I do not recall one way or the other.<br />
22 Q. Did Steve Caputi play any role in this<br />
23 activity?<br />
24 A. He did.<br />
25 Q. What was Mr. Caputi's role?
1 A. At a specific point in time we had<br />
Page 59<br />
2 Mr. Caputi actually fly overseas to Mr. Lefebvre's<br />
3 location and call him repeatedly and call his family<br />
4 repeatedly posing as a reporter in order to scare<br />
5 Mr. Lefebvre.<br />
6 Q. A reporter for whom?<br />
7 A. You know, it was a big newspaper and I<br />
8 don't recall which newspaper it was.<br />
9 Q. New York Times?<br />
10 A. It's very possible, yes. It was a big<br />
11 newspaper. It was crafted by Mr. Peter and I in such<br />
12 a fashion as to scare the living daylights out <strong>of</strong><br />
13 Mr. Lefebvre.<br />
14 Q. What were your instructions to Mr. Caputi<br />
15 as to what to say to Mr. Lefebvre and/or his family<br />
16 when he telephoned him?<br />
17 A. That he was investigating improprieties on<br />
18 Mr. Lefebvre's behalf and he was going to be writing<br />
19 an article about it and he wanted to get his side <strong>of</strong><br />
20 the story.<br />
21 Q. The improprieties meaning Mr. Lefebvre's<br />
22 use <strong>of</strong> prostitutes in America?<br />
23 A. Yes.<br />
24 Q. Did the story also encompass financial<br />
25 improprieties <strong>of</strong> Silversea under Mr. Lefebvre's
1 control?<br />
Page 60<br />
2 A. It did, involving some paintings and the<br />
3 like, but ultimately you understand I don't know what<br />
4 Mr. Caputi actually said -- only what I instructed<br />
5 him to say.<br />
6 Q. Did you have a conversation with<br />
7 Mr. Lefebvre yourself, one-on-one, about any <strong>of</strong> these<br />
8 alleged investigations that were going on pertaining<br />
9 to his activities?<br />
10 A. I did.<br />
11 Q. How many times did you speak with him about<br />
12 it?<br />
13 A. Dozens.<br />
14 Q. So would it be a fair statement that<br />
15 Mr. Lefebvre thought that you were protecting his<br />
16 interests with respect to these investigations that<br />
17 were actually not real investigations?<br />
18 A. Yes, sir.<br />
19 Q. And is that what legitimized your being<br />
20 able to generate the legal fee statements that were<br />
21 completely fabricated time that referenced the<br />
22 confidential project involving Mr. Lefebvre?<br />
23 A. Yes, sir.<br />
24 Q. And is that then why the illegal fee<br />
25 statements went uncontested by Mr. Lefebvre to the
1 extent that he knew that they were being paid,<br />
Page 61<br />
2 because he thought it was for legitimate services<br />
3 rendered to protect his interests?<br />
4 A. Yes, sir. That, in combination with<br />
5 <strong>Albert</strong>'s input.<br />
6 Q. And were you present in any conversations<br />
7 between or among <strong>Albert</strong>, Mr. Lefebvre and yourself<br />
8 about these issues?<br />
9 A. I was present during conversations with me,<br />
10 <strong>Albert</strong> and Mr. Lefebvre, and I was in <strong>Albert</strong>'s <strong>of</strong>fice<br />
11 with him unbeknownst to Mr. Lefebvre when <strong>Albert</strong> had<br />
12 called Mr. Lefebvre to scare him.<br />
13 Q. What did you hear Mr. Peter say to<br />
14 Mr. Lefebvre?<br />
15 A. On occasions when we didn't even have the<br />
16 police coming to the <strong>of</strong>fice <strong>Albert</strong> would call him and<br />
17 tell him that he had just been accosted by the police<br />
18 about him, that he better not come into the country,<br />
19 he put on a whole charade about how concerned he was<br />
20 for Manfredi, and he also used it in a manner to kind<br />
21 <strong>of</strong> demean Mr. Lefebvre by saying, "You've gotten this<br />
22 company into a lot <strong>of</strong> trouble through your actions,<br />
23 this could be devastating to the company," that type<br />
24 <strong>of</strong> thing.<br />
25 Q. What was Mr. Lefebvre's reaction?
1 A. At various points in time he appeared to be<br />
2 frightened. At various points in time he appeared to<br />
3 be incredulous and had to be further convinced that<br />
4 this was real, and that that would generally provoke<br />
5 another visit from law enforcement.<br />
6 Q. I assume that conversation that you alluded<br />
7 to was on speaker phone?<br />
8 A. Yes, sir.<br />
9 Q. Was the result <strong>of</strong> these activities with<br />
10 the policeman and Mr. Caputi and your conference<br />
11 calls with Mr. Lefebvre such that, in fact, he did<br />
12 not come to the United States?<br />
13 A. Most <strong>of</strong> the time. There were occasions<br />
14 where he had to travel here, where he insisted, and<br />
15 we created a whole charade where we basically had to<br />
16 sneak him into the country. He had to be very<br />
17 careful. He had to keep us apprised as to his<br />
18 whereabouts at all times so that <strong>Albert</strong> would, in<br />
19 fact, know when he was coming to the <strong>of</strong>fice. We had<br />
20 to sneak him into the <strong>of</strong>fice. We had a driver for<br />
21 him, and we actually had this police <strong>of</strong>ficer, for<br />
22 lack <strong>of</strong> a better term, chasing him through the<br />
23 streets.<br />
24 Q. You mean a fake police chase?<br />
25 A. Not so much a fake police chase, but just<br />
Page 62
1 that the police <strong>of</strong>ficer was there and Manfredi knew<br />
Page 63<br />
2 he was on his tail, but it wasn't a police chase.<br />
3 Q. For the record, I have some documents that<br />
4 you don't have. They've been Bates stamped as<br />
5 T-AP00211 through T-AP00215.<br />
6 I'm going to mark them as Composite<br />
7 Exhibit 3. I want to put on the record I am -- you<br />
8 don't have them. I'm not going to get into detail on<br />
9 them right now because I can authenticate them<br />
10 myself.<br />
11 I want to be clear I am going to take these<br />
12 back to my <strong>of</strong>fice and flyspeck them. I know that a<br />
13 couple <strong>of</strong> them have the police <strong>of</strong>ficer's name on it<br />
14 and I'm going to redact the police <strong>of</strong>ficer's name and<br />
15 anything that would remotely suggest where the police<br />
16 <strong>of</strong>ficer worked and then after that I'll give the<br />
17 documents to the court reporter.<br />
18 Is that okay with you, Larry?<br />
19 MR. LaVECCHIO: That's fine.<br />
20 (Whereupon, the documents referred to<br />
21 were marked Plaintiff's Composite Exhibit No. 3 for<br />
22 Identification.)<br />
23 A. Okay. Mr. Lichtman, I'm going to take a<br />
24 two-minute break to use the restroom.<br />
25 Q. All right. That's good, because I actually
1 need to discuss something with Mr. LaVecchio about<br />
Page 64<br />
2 one <strong>of</strong> these documents.<br />
3 (Short Break)<br />
4 Q. I have these e-mails here -- and, again,<br />
5 I'm going to be a little sketchy on the e-mails<br />
6 because they contain names that I know ought not yet<br />
7 be publically revealed.<br />
8 One <strong>of</strong> them -- this is document 211 --<br />
9 references a police <strong>of</strong>ficer coming to Silversea and<br />
10 asking Rose, the receptionist, to see Mr. Lefebvre<br />
11 and asking if Mr. Lefebvre was in town, asked if he<br />
12 was at a convention in Miami, then asked if Rita, who<br />
13 I believe was Mr. Peter's assistant at that time, or<br />
14 Mr. Peter were there.<br />
15 Do you remember anything about that<br />
16 particular event?<br />
17 A. I do.<br />
18 Q. Tell me what you recall.<br />
19 A. It was one <strong>of</strong> the occasions when<br />
20 Mr. Lefebvre insisted on coming into town and we<br />
21 dispatched the police <strong>of</strong>ficer to go to the <strong>of</strong>fice so<br />
22 that while Mr. Lefebvre was in town he stayed away<br />
23 from the Silversea <strong>of</strong>fice.<br />
24 Q. March 14, 2006. Does that sound correct to<br />
25 you as to timing?
1 A. I don't recall the date, but that sounds<br />
Page 65<br />
2 approximately correct.<br />
3 Q. And Mr. Peter was knowledgeable and<br />
4 involved in this scheme with you. Correct?<br />
5 A. Yes, sir.<br />
6 Q. There's also an e-mail that you wrote to<br />
7 <strong>Albert</strong>, copied to Manfredi, and it says -- this is<br />
8 document T-AP00212: "I am most distressed. I just<br />
9 had the police here asking if Manfredi was in my<br />
10 <strong>of</strong>fice. I advised that he is not in the country and<br />
11 that I am unaware <strong>of</strong> his travel schedule. Did they<br />
12 go to the Silversea <strong>of</strong>fice or just to my <strong>of</strong>fice?<br />
13 Please advise. I need to know so I can properly<br />
14 follow up. The prior matter has been resolved in<br />
15 full in Manfredi's favor. Thus I am concerned as to<br />
16 why they would still be attempting to contact him.<br />
17 Can one <strong>of</strong> you please advise?"<br />
18 That's the same date as the other e-mail.<br />
19 Is this e-mail -- do you remember this<br />
20 e-mail or the facts?<br />
21 A. I do.<br />
22 Q. Can you describe your understanding <strong>of</strong> what<br />
23 you were saying and what was happening in connection<br />
24 with drafting this e-mail?<br />
25 A. <strong>Albert</strong> was talking about the fact that
1 Manfredi was still talking about coming up to the<br />
Page 66<br />
2 <strong>of</strong>fice. He contacted me, told me that I needed to<br />
3 fire <strong>of</strong>f an e-mail to further frighten Manfredi and<br />
4 to be in conjunction with the fact that this police<br />
5 <strong>of</strong>ficer was at the <strong>of</strong>fice.<br />
6 Q. You say here, "I advised that he is not in<br />
7 the country and that I am unaware <strong>of</strong> his travel<br />
8 schedule."<br />
9 Was that to suggest to <strong>Albert</strong> and to<br />
10 Manfredi that you were telling the police something<br />
11 that wasn't true to get them <strong>of</strong>f <strong>of</strong> the trail?<br />
12 A. Yes.<br />
13 Q. There's another e-mail. It's T-AP00213.<br />
14 This has the person's name in it it so I'm not going<br />
15 to mention it, but it says: Mr. Blank stopped by for<br />
16 Mr. Lefebvre, and the blank is the name <strong>of</strong> the<br />
17 <strong>of</strong>ficer.<br />
18 It was sent to you by a Vicki C. at<br />
19 Silversea Cruises and it says, "<strong>Scott</strong> wanted you to<br />
20 know right away."<br />
21 Do you recall the circumstances behind that<br />
22 e-mail?<br />
23 A. I do.<br />
24 Q. Can you describe them, please?<br />
25 A. I had dispatched this <strong>of</strong>ficer to Silversea
1 after discussing the issue with <strong>Albert</strong> and problems<br />
Page 67<br />
2 we were having with Manfredi, and I specifically told<br />
3 the <strong>of</strong>ficer to ask for Ms. Carmichael, who was the<br />
4 director <strong>of</strong> human resources, so it would appear that<br />
5 he had been and had knowledge about the people at the<br />
6 company and the like.<br />
7 He did what I asked him to do and Vicki<br />
8 wrote to me about it.<br />
9 Q. And then I have an e-mail -- this is<br />
10 T-AP00215. This was to <strong>Albert</strong> Peter and Freddy<br />
11 LeFebvre, Amerigo Perasso with a copy to you sent by<br />
12 Rita Alijaj, A-L-I-J-A-J, and this says -- again,<br />
13 this has a different name so I'm not going to use the<br />
14 name, but it says: I just received a call from Blank<br />
15 from the organized task force asking to speak with<br />
16 <strong>Albert</strong>, Manfredi or Amerigo. I asked what it was<br />
17 regarding and he would not specify. I explained<br />
18 <strong>Albert</strong> was not available and Mr. Lefebvre and<br />
19 Mr. Perasso were currently out <strong>of</strong> the country. He<br />
20 said this is a big conflict and said he would call<br />
21 again next week. Thank you.<br />
22 Do you recall the circumstances <strong>of</strong> that<br />
23 e-mail?<br />
24 A. What's the date?<br />
25 Q. January 31, 2007, which if it helps you
1 from a timeframe was about the time that <strong>Albert</strong> was<br />
Page 68<br />
2 being terminated from Silversea.<br />
3 A. Yes. I do recall that.<br />
4 Q. What do you recall?<br />
5 A. We had at this point in time enlisted the<br />
6 assistance <strong>of</strong> Rita Alijaj. She was one <strong>of</strong> <strong>Albert</strong>'s<br />
7 confidants, was the replacement for Diane DelValle as<br />
8 far as being his <strong>of</strong>fice assistant, and we told her we<br />
9 were going to be actually having this particular<br />
10 <strong>of</strong>ficer call and she was to field the call and then<br />
11 prepare an e-mail much like the one you just read.<br />
12 Q. So she knew there was, in fact, no true<br />
13 investigation?<br />
14 A. She knew that we were utilizing the police<br />
15 to keep Manfredi at bay, yes.<br />
16 Q. Did she also know <strong>of</strong> your fraudulent<br />
17 billing scheme?<br />
18 A. She did and Diane did.<br />
19 Q. How do you know that she did -- meaning<br />
20 Rita?<br />
21 A. I discussed it with her in <strong>Albert</strong>'s<br />
22 presence. I discussed it with her subsequently when<br />
23 she came to work for RRA.<br />
24 Q. When you say "came to work for RRA," she<br />
25 actually came to work for Jewel River Cruises which
1 was located in RRA's <strong>of</strong>fices.<br />
Page 69<br />
2 Is that a fair statement?<br />
3 A. Yes, sir.<br />
4 Q. Was she also an RRA employee?<br />
5 A. Well, I don't remember whether she was<br />
6 actually on RRA's actual employee roster, but the<br />
7 money she was being paid was coming out <strong>of</strong> RRA so I<br />
8 use that term broadly.<br />
9 MR. LICHTMAN: For the record, I'm asking<br />
10 Suzi to take note that I'm giving Composite Exhibit 3<br />
11 to my colleague, Mr. Webber, and what we'll do is get<br />
12 a clean copy <strong>of</strong> it -- I think we have one with us<br />
13 actually -- I suspect that Mr. LaVecchio has a<br />
14 Sharpie that we can black out the names and probably<br />
15 be able to give it to you today.<br />
16 If we can't, then we'll get it to you<br />
17 tomorrow for sure.<br />
18 MR. GOLDBERG: What's your anticipated<br />
19 timing today?<br />
20 MR. LICHTMAN: I am actually I guess<br />
21 halfway through. Maybe more.<br />
22 Q. So, Mr. <strong>Rothstein</strong>, Composite Exhibit 2<br />
23 which, again, for the record is <strong>Trustee</strong> documents 137<br />
24 through 200, are what we believe to be fictitious<br />
25 invoices.
1 Is it a fair statement that any invoice<br />
Page 70<br />
2 that references "confidential project" and<br />
3 Mr. Lefebvre, that those are all totally fabricated<br />
4 times -- totally fabricated bills?<br />
5 A. Yes.<br />
6 Q. I noted that one <strong>of</strong> the bills references<br />
7 international security issues as well as domestic<br />
8 security issues.<br />
9 Are the international security issues<br />
10 referenced in these bills that would be, for<br />
11 instance, at page 143 -- are those also fictitious?<br />
12 A. Yes.<br />
13 Q. And page 145, which references<br />
14 investigative services for 40,000, would that also<br />
15 be fictitious?<br />
16 A. Yes.<br />
17 Q. By the way, did Mr. Lippman know that you<br />
18 had all these fictitious invoices going out on the<br />
19 Manfredi Lefebvre circumstance with Mr. Peter?<br />
20 A. I don't recall one way or the other.<br />
21 Q. Page 148.<br />
22 If references all work performed on<br />
23 Whitelock confidential project.<br />
24 Was there a legitimate Whitelock<br />
25 confidential special project you were working on?
1 A. Yes.<br />
Page 71<br />
2 Q. There's a bill that is dated March 14,<br />
3 2006. We didn't see any more detailed bills.<br />
4 The bill that I'm just referencing, which<br />
5 is at page 148, is for $86,250.<br />
6 Is this a legitimate bill?<br />
7 A. No. There was some minimal amount <strong>of</strong> work<br />
8 done with reference to the Whitelock matter, but<br />
9 nothing near that amount. This is just one <strong>of</strong> those<br />
10 inflated bills.<br />
11 Q. I don't want you to divulge attorney/client<br />
12 communications, but what was the general nature <strong>of</strong><br />
13 the Whitelock special project?<br />
14 A. A terminated employee threatening to sue<br />
15 and a relationship to the Robin Lindsay matter.<br />
16 Q. I have some legitimate bills that<br />
17 references "Whitelock" and some legitimate bills that<br />
18 reference "Lindsay."<br />
19 Who would have knowledge also that a<br />
20 portion <strong>of</strong> page 148 was fraudulent?<br />
21 A. Me, <strong>Albert</strong> Peter, Debra Villegas, Irene<br />
22 Stay, and likely anyone else that saw the bill that<br />
23 actually knew what was being done on the file.<br />
24 Q. At page 149 it's a bill -- March 14,<br />
25 2006 -- in the amount <strong>of</strong> $37,525.
1 I know that there was an actual file for<br />
Page 72<br />
2 Arent Fox. This says: Confidential investigation,<br />
3 Arent Fox.<br />
4 Is this a legitimate bill?<br />
5 A. No. It's totally false.<br />
6 Q. If you would take a look at page 151,<br />
7 please. This page references a matter Silversea<br />
8 Cruises LTD versus Wendy Clayton dated April 5, 2006,<br />
9 invoice number 62819, and this seeks $200,000 as a<br />
10 refundable investigative retainer.<br />
11 Do you recall the circumstances <strong>of</strong> payment<br />
12 <strong>of</strong> that retainer?<br />
13 A. I do.<br />
14 Q. Was this a legitimate retainer request?<br />
15 A. No.<br />
16 Q. Can you describe the circumstances <strong>of</strong> this<br />
17 bill?<br />
18 A. <strong>Albert</strong> and I needed $200,000 out <strong>of</strong><br />
19 Silversea. We had an issue with regard to billings.<br />
20 We were looking for an alternate avenue to get more<br />
21 money out. We had an active file called "Clayton"<br />
22 that we thought we could justify this expenditure so<br />
23 we created this bill.<br />
24 Q. Do you recall what you needed the money for<br />
25 at that point in time?
1 A. No. It would have been anything from<br />
Page 73<br />
2 <strong>Albert</strong>'s expenses to my expenses to firm expenses to<br />
3 Ponzi expenses to co-conspirator expenses -- the<br />
4 whole myriad <strong>of</strong> items.<br />
5 Q. To the best your recollection this money<br />
6 was paid?<br />
7 A. To the best <strong>of</strong> my recollection, yes.<br />
8 Q. Take a look at 155, please. That's an<br />
9 invoice that is dated May 9, 2006. It's Silversea<br />
10 Cruises versus Damian O'Connor.<br />
11 This is also a confidential project and<br />
12 this provided accounts payable funds to be returned<br />
13 upon completion <strong>of</strong> the project for $250,000.<br />
14 Was there a Damian O'Connor matter?<br />
15 A. Yes.<br />
16 Q. Was this a legitimate bill?<br />
17 A. No.<br />
18 Q. What were the circumstances that led to<br />
19 your preparing this bill?<br />
20 A. Identical to the ones I discussed with<br />
21 regard to the $200,000 investigative retainer.<br />
22 Same type <strong>of</strong> circumstance.<br />
23 Q. And Mr. Peter had involvement in this one,<br />
24 as well?<br />
25 A. Yes, sir.
1 Q. Take a look at 156, please.<br />
Page 74<br />
2 Do you have that?<br />
3 A. Okay.<br />
4 Q. This is what appears ---<br />
5 A. I do.<br />
6 Q. This is what appears to be a legitimate<br />
7 bill on Silversea versus Damian O'Connor.<br />
8 However, if you take a look at page 157,<br />
9 you'll see a time entry May 15 for your time <strong>of</strong> four<br />
10 hours and 15 minutes, and that comes out to a rate <strong>of</strong><br />
11 44,286?<br />
12 Was that an intentional defalcation or was<br />
13 that a typo that got missed?<br />
14 A. I don't know.<br />
15 Q. You would agree that your hourly rate times<br />
16 four hours did not amount to $44,000, though.<br />
17 Correct?<br />
18 A. Yes. It looks like a mistake.<br />
19 Q. If you take a look at page 159, this looks<br />
20 somewhat like the form <strong>of</strong> a partially legitimate bill<br />
21 on the Wendy Clayton matter.<br />
22 Do you have that in front <strong>of</strong> you?<br />
23 A. 159?<br />
24 Q. Yes.<br />
25 A. Yes.
1 Q. Is it a fair statement that any <strong>of</strong><br />
Page 75<br />
2 your -- meaning RRA's -- legal fee statements that do<br />
3 not show the time allotted per task and the extension<br />
4 <strong>of</strong> the fee on an hourly rate would be a fabricated<br />
5 bill as reflected by the final gross total, which on<br />
6 this exhibit at page 161 is 68,000?<br />
7 A. A bill that is set up like this bill<br />
8 without indicating the timekeeper or the time entry<br />
9 with a total would be one <strong>of</strong> the following: Either a<br />
10 completely fake bill or a partially fake bill.<br />
11 Q. Is the Clayton file one that was worked on<br />
12 also by Mr. Lippman?<br />
13 A. I don't recall. You'd have to look at the<br />
14 file itself.<br />
15 Q. I noted that there's some entries in late<br />
16 June with lawyers from New Jersey, Howard Jaslow and<br />
17 Stan Goldberg, whom I know were friendly to<br />
18 Mr. Lippman.<br />
19 Do you know -- were they involved in this<br />
20 case or were their names made up for purposes <strong>of</strong> this<br />
21 invoice?<br />
22 A. No. My recollection is -- now that you're<br />
23 saying that -- my recollection is that we did get<br />
24 Lippman involved in this and we really did need to<br />
25 retain lawyers out in Jersey.
1 Q. Take a look at 169.<br />
Page 76<br />
2 A. And, Mr. Lichtman, just let me just add<br />
3 this. The fact that I'm seeing Melissa Lewis' name<br />
4 in here, Chris Sharp's name in here, who are both<br />
5 legitimate attorneys, and Michael Pancier's name --<br />
6 same as regard to him -- indicates this was a real<br />
7 matter on a billing where we created a partially<br />
8 fraudulent bill.<br />
9 Q. Take a look at 169, if you would, please.<br />
10 A. Okay.<br />
11 Q. Is it a fair statement that this document,<br />
12 which is on the Damian O'Connor matter but has only<br />
13 this one entry for all items relating to account,<br />
14 that this would be a fraudulent bill?<br />
15 A. Yes.<br />
16 Q. It would be fair statement then, so I don't<br />
17 have to go through the rest <strong>of</strong> this stack <strong>of</strong><br />
18 invoices, that any time you reference a legitimate<br />
19 case, but it has a one-line entry with a sum <strong>of</strong> money<br />
20 that's due, those would be fabricated bills?<br />
21 A. That's correct.<br />
22 Q. And is it correct then that one <strong>of</strong> the<br />
23 reasons that you needed to keep Mr. Lefebvre out <strong>of</strong><br />
24 the country was you didn't want him here possibly<br />
25 investigating in any greater detail the amount <strong>of</strong>
1 attorneys' fees that were being incurred by<br />
Page 77<br />
2 Silversea?<br />
3 A. Correct.<br />
4 Q. I don't think I need to spend more time<br />
5 going through each <strong>of</strong> these. I think that we have<br />
6 our foundation there so I'm going to move to a<br />
7 different area then.<br />
8 The corollary to the fabrication <strong>of</strong> all<br />
9 these bills is that somewhere along the line there<br />
10 needed to be payments to Mr. Peter.<br />
11 You agree that he was paid money out <strong>of</strong> the<br />
12 proceeds that RRA was paid for these inflated or<br />
13 altogether fake invoices?<br />
14 A. He was.<br />
15 Q. Do you recall the sources <strong>of</strong> how money was<br />
16 filtered directly or indirectly to him or to those<br />
17 who he directed money to be sent?<br />
18 A. Yes. You know when you say "out <strong>of</strong> the<br />
19 proceeds," Mr. Lichtman, I don't want there to be an<br />
20 inappropriate belief that we actually took that exact<br />
21 money and then funneled it to him.<br />
22 What would happen is that money would go to<br />
23 us, we would use whatever we needed for our purposes,<br />
24 and we would also then funnel amounts commensurate<br />
25 with what we were billing to Mr. Peter through
1 various sources.<br />
Page 78<br />
2 Q. Let me make sure I understand what you're<br />
3 saying.<br />
4 You got some and he got some?<br />
5 A. Yes.<br />
6 Q. Virtually always you agreed on the amounts?<br />
7 A. Yes.<br />
8 Q. Do you recall generally the sources <strong>of</strong> how<br />
9 you got money to Mr. Peter?<br />
10 A. Yes.<br />
11 Q. Would you describe them generally. I'm<br />
12 going to go through them specifically after you state<br />
13 them generally.<br />
14 A. Fake payroll, cash, other checks written to<br />
15 him.<br />
16 That's all I recall at this moment. There<br />
17 may be more.<br />
18 Q. Do you recall whether or not for<br />
19 instance ---<br />
20 A. Wait. Wait. Wait.<br />
21 Q. Yes.<br />
22 A. Payments to other people on his behalf.<br />
23 For example, Diane DelValle.<br />
24 Q. Okay. I'm going to work through those,<br />
25 then.
1 Let me first start with Ms. DelValle.<br />
Page 79<br />
2 The records <strong>of</strong> RRA reflect that<br />
3 Ms. DelValle was paid compensation in calendar year<br />
4 2005 as contract labor with a corresponding Form 1099<br />
5 in the amount <strong>of</strong> $57,692.12.<br />
6 Was Ms. DelValle an employee <strong>of</strong> RRA in<br />
7 2005?<br />
8 A. No.<br />
9 Q. Why was she paid 57,000 and change in 2005?<br />
10 A. Because <strong>Albert</strong> asked me to pay her.<br />
11 Q. Why did he ask you to pay her? What did he<br />
12 say to you?<br />
13 A. He said she's going to create a problem<br />
14 with him and Tatiana, or him and somebody else, with<br />
15 his wife, if she's not properly taken care <strong>of</strong>, and<br />
16 that he wants part <strong>of</strong> the money that would be going<br />
17 to him to go to her.<br />
18 Q. Sounds like we'll call it "hush money."<br />
19 Would that be an appropriate way to<br />
20 describe it?<br />
21 A. Yes.<br />
22 Q. Did any <strong>of</strong> that payment have anything to do<br />
23 with Mr. Coniglio?<br />
24 A. I don't know one way or the other.<br />
25 Q. Would you agree that keeping Ms. DelValle
1 happy, though, would have been important to<br />
Page 80<br />
2 Mr. Coniglio?<br />
3 A. Let me withdraw that.<br />
4 As you said that something popped into my<br />
5 head. I was actually directly told by Mr. Coniglio<br />
6 to make certain that I talked to <strong>Albert</strong>, okay, and<br />
7 to make certain that part <strong>of</strong> the moneys that belonged<br />
8 to <strong>Albert</strong> were paid to Diane because it was the right<br />
9 thing to do, and I recall having that conversation<br />
10 outside at Runway 84 on more than one occasion when<br />
11 Mr. Coniglio actually came up to me and told me he<br />
12 needed to talk to me and told me what needed to be<br />
13 done.<br />
14 Q. Would you agree that if Mr. Coniglio told<br />
15 you that needed to be done, that wasn't a request in<br />
16 your mind -- that was an order?<br />
17 A. Yes.<br />
18 Q. And you would not want to disobey an order<br />
19 from Mr. Coniglio because that could have unfortunate<br />
20 results. Is that a fair statement?<br />
21 A. I did not want to disappoint any members <strong>of</strong><br />
22 my Thursday night dinner crew.<br />
23 Q. So to the best <strong>of</strong> your knowledge is the<br />
24 money that was paid in 2005 to Ms. DelValle proceeds<br />
25 <strong>of</strong> part <strong>of</strong> the theft from overbilling?
1 A. Yes. It's part <strong>of</strong> the money that would<br />
Page 81<br />
2 have ordinarily gone to <strong>Albert</strong> Peter.<br />
3 Q. In 2006 Ms. DelValle received $69,192.11.<br />
4 Would your answers be the same as to why<br />
5 she was paid that money?<br />
6 A. Yes, sir.<br />
7 Q. And in 2007 she received $53,846.<br />
8 Same?<br />
9 A. Same exact set <strong>of</strong> circumstances.<br />
10 Q. Now, you know that Mr. Peter was no longer<br />
11 employed by Silversea by probably late January, 2007.<br />
12 Are you familiar with that?<br />
13 A. Yes, but he was still owed money out <strong>of</strong><br />
14 money that we had embezzled from the company. He<br />
15 believed that he had it coming and I had no problem<br />
16 giving it to him and/or giving it to Ms. DelValle<br />
17 given two things: One, the fact that I couldn't have<br />
18 <strong>Albert</strong> all out <strong>of</strong> whack because he would have to<br />
19 worry about Diane going to Iris and, two, I did not<br />
20 want either <strong>Albert</strong> or I or anyone else in my firm to<br />
21 have a problem with Mr. Coniglio and his friends.<br />
22 Q. I think I know the answer, but to be sure:<br />
23 You didn't keep a ledger <strong>of</strong> money in and out with<br />
24 respect to the Silversea overbilling or fraudulent<br />
25 billing, did you?
1 A. No, sir.<br />
Page 82<br />
2 Q. Nor did you keep a ledger as to what you<br />
3 paid out to anybody directly or indirectly <strong>of</strong> the<br />
4 proceeds that came from that other billing.<br />
5 Is that a fair statement?<br />
6 A. That's correct, sir.<br />
7 Q. In 2008 Ms. DelValle received $43,076.80.<br />
8 Is that the same circumstance that you just<br />
9 described for 2007 -- that Mr. Peter's still had a<br />
10 credit?<br />
11 A. Yes, and the impetus from Mr. Coniglio.<br />
12 Q. Is it a fair statement that Ms. DelValle<br />
13 from 2005 through 2008 never was an employee or<br />
14 performed any services for RRA?<br />
15 A. That's correct.<br />
16 Q. The books and records <strong>of</strong> RRA also reflect<br />
17 that Ms. DelValle received $1,000 in 2005.<br />
18 This did not go through ADP by the way.<br />
19 $5,000 in 2006 and $13,000 in 2007.<br />
20 Were those also payments that were for<br />
21 the benefit <strong>of</strong> Ms. DelValle resulting from the<br />
22 overbilling and fraudulent billing with <strong>Albert</strong> Peter<br />
23 at Silversea?<br />
24 A. Yes.<br />
25 Q. The books and records <strong>of</strong> RRA also reflect
1 that Mr. Peter received payroll checks totalling<br />
Page 83<br />
2 $403,000.<br />
3 The first such payment came March 09, 2007.<br />
4 They were payments in the amount <strong>of</strong> $9,615 and they<br />
5 continued until May <strong>of</strong> 2009.<br />
6 Are you familiar with those payments?<br />
7 A. I am.<br />
8 Q. They appear to have been made on a regular<br />
9 basis every two weeks out <strong>of</strong> RRA's payroll account.<br />
10 Do you agree with that?<br />
11 A. Yes, sir.<br />
12 Q. Did Mr. Peter ever provide any services <strong>of</strong><br />
13 any nature for RRA?<br />
14 A. No, sir.<br />
15 Q. What was the purpose <strong>of</strong> paying Mr. Peter<br />
16 biweekly compensation <strong>of</strong> $9,615.38?<br />
17 A. It was payment to him <strong>of</strong> money he had<br />
18 coming to him from the Silversea embezzlement.<br />
19 Q. Did you discuss that with him specifically?<br />
20 A. Yes.<br />
21 Q. How much money did you feel that he had<br />
22 coming to him all total?<br />
23 A. We had stolen so much money from Silversea<br />
24 in total I don't think I ever thought about it. He<br />
25 was a solid co-conspirator, and I was going to make
1 sure that he was properly taken care <strong>of</strong>.<br />
Page 84<br />
2 Q. These payments began shortly after his<br />
3 termination from Silversea.<br />
4 Do you recall that?<br />
5 A. I do.<br />
6 Q. Is there a correlation between his<br />
7 termination from Silversea and the payments starting<br />
8 very shortly thereafter?<br />
9 A. There is.<br />
10 Q. Would you describe that, please.<br />
11 A. Yes. At the time that Mr. Lippman and I<br />
12 were talking to <strong>Albert</strong> and trying to get him to go<br />
13 quietly into the night out <strong>of</strong> Silversea's employ we<br />
14 finally said to him -- because he was concerned about<br />
15 his finances -- we finally said to him that, "Listen,<br />
16 you've got plenty <strong>of</strong> money still coming to you from<br />
17 the money we took from Silversea. You've got plenty<br />
18 <strong>of</strong> money still coming, so we'll just put you on<br />
19 payroll and you'll be fine and you can work on the<br />
20 other projects in the meantime that we were going to<br />
21 do together, like Jewel River."<br />
22 Q. Mr. Lippman participated in that<br />
23 conversation?<br />
24 A. He was present during the conversation.<br />
25 He did not say anything about that as he did not have
1 the authority to say that, but he was present.<br />
Page 85<br />
2 Q. I'm going to spend some time on his<br />
3 termination in just a few minutes.<br />
4 Next is what has been labeled in the RRA<br />
5 case as the Lippman nest egg account.<br />
6 Are you familiar with that account?<br />
7 A. I am.<br />
8 Q. Can you describe for me your understanding<br />
9 <strong>of</strong> what the Lippman nest egg account is?<br />
10 A. It was an account established by myself,<br />
11 Mr. Lippman and Mr. Rosenfeldt utilizing a previously<br />
12 existing formerly legitimate Lippman, Valinsky<br />
13 account for the purpose <strong>of</strong> taking money out <strong>of</strong> RRA,<br />
14 funneling it through Lippman, Valinsky in a check<br />
15 kiting scheme that was geared both to assist RRA and<br />
16 pay money to me, Mr. Lippman and Mr. Rosenfeldt above<br />
17 and beyond other moneys we were receiving that we<br />
18 could then not have to declare on our taxes.<br />
19 Q. Would you describe for the record your<br />
20 understanding <strong>of</strong> what a check kiting scheme is?<br />
21 A. It's playing the float on checks between<br />
22 two different or multiple different banks.<br />
23 Q. Is it your understanding that is not legal?<br />
24 A. It is illegal.<br />
25 Q. I have before me copies <strong>of</strong> account
1 statements from the Lippman, Valinsky and Storfer<br />
Page 86<br />
2 operating account at Equitable Bank.<br />
3 I have four checks that were made payable<br />
4 to Mr. Peter in the timeframe <strong>of</strong> December 7, 2006<br />
5 through January 12, 2007. Those checks total<br />
6 $89,723.<br />
7 Do you know what the reason was as to<br />
8 why there were checks written out <strong>of</strong> the Lippman,<br />
9 Valinsky and Storfer account to Mr. Peter?<br />
10 A. It's one <strong>of</strong> several possibilities.<br />
11 One, it was money that <strong>Albert</strong> needed that<br />
12 he felt he was still owed, and which I agreed that he<br />
13 was still owed, from the Silversea embezzlement where<br />
14 at a time where we did not have sufficient funds at<br />
15 RRA to pay him so we had to use the check kiting<br />
16 scheme, or it was a time when he was due payments<br />
17 from the Ponzi scheme and we did not have sufficient<br />
18 funds in the RRA accounts, Ponzi accounts, to pay him<br />
19 so we used the check kiting scheme to get the funds<br />
20 to him. One or the other.<br />
21 Q. The timing <strong>of</strong> these checks being late<br />
22 December, 2006 to mid January, 2011 -- does that help<br />
23 refresh your memory any?<br />
24 A. No. The only thing that would refresh my<br />
25 recollection is to look at the amounts and try to
1 match them and see if they match deal payments he was<br />
2 due.<br />
3 If they matched deal payments he was due<br />
4 then it matches to illegitimate funds he was entitled<br />
5 to out <strong>of</strong> the investment fraud. If it does not match<br />
6 any <strong>of</strong> those deal e-mails, then it is money that we<br />
7 were giving to him from the Silversea embezzlement<br />
8 scam.<br />
9 Q. How did it happen that these checks were<br />
10 written out <strong>of</strong> what you've called or is now known as<br />
11 the nest egg account? Did you direct them to be<br />
12 written?<br />
13 A. I did.<br />
14 Q. Who did you direct?<br />
15 A. I would direct Irene Stay to cut the float<br />
16 check to either Lippman or the Lippman Valinsky<br />
17 account, at the same time requesting that Mr. Lippman<br />
18 cut the reverse float check back out to us, or to<br />
19 whatever party I was having it paid to, instructing<br />
20 him when to deposit our check.<br />
21 Q. There is also a $400,000 payment that was<br />
22 made -- hold on. Off the record. I want to get the<br />
23 documents. I need one minute to get all the<br />
24 documents.<br />
25 A. That's all right. I'm going to use the<br />
Page 87
1 restroom in the meantime.<br />
Page 88<br />
2 (Short Break)<br />
3 Q. On October 24, 2006 there was a transaction<br />
4 whereby Silversea Cruises wire transferred money to<br />
5 RRA, $400,000, and it was allegedly for the benefit<br />
6 <strong>of</strong> <strong>Albert</strong> Peter. Then money went out to Tatiana<br />
7 Yoel.<br />
8 Are you familiar with that transaction?<br />
9 A. I am.<br />
10 Q. Ms. Yoel has taken the position that this<br />
11 is money -- and <strong>Albert</strong> Peter has done the same --<br />
12 that this is money that Silversea owed to Mr. Peter.<br />
13 Do you have any knowledge <strong>of</strong> whether or not<br />
14 that is true or not true?<br />
15 A. It's a lie.<br />
16 Q. How do you know it's a lie?<br />
17 A. I discussed the issue with <strong>Albert</strong> Peter.<br />
18 Q. What did <strong>Albert</strong> say to you?<br />
19 A. He told me that he needed to get $400,000<br />
20 to Tatiana in order to purchase a property together<br />
21 because she was going to leave him if they didn't<br />
22 start cementing their relationship.<br />
23 I told him that we did not have sufficient<br />
24 funds in-house to just simply send her $400,000 given<br />
25 everything that was going on.
1 He said, "I can send it to you from<br />
Page 89<br />
2 Silversea if you'll then forward it to Tatiana," and<br />
3 I said I would and did.<br />
4 Q. Are you aware that this was $400,000 that<br />
5 was used to purchase a condominium for Tatiana on<br />
6 South Beach?<br />
7 A. Yes.<br />
8 Q. Did Tatiana provide any services or benefit<br />
9 <strong>of</strong> any nature to RRA in connection with this<br />
10 $400,000?<br />
11 A. No, sir.<br />
12 Q. Did <strong>Albert</strong> provide any benefit or services<br />
13 to RRA in connection with this $400,000?<br />
14 A. Legitimate services? No, sir.<br />
15 MR. GOLDBERG: I'm glad the term "cementing<br />
16 the relationship" now has come to mean buying real<br />
17 estate with cement for them.<br />
18 Q. I think that the transaction took an<br />
19 interesting turn in that money went from Silversea to<br />
20 RRA's account.<br />
21 Do you agree with that?<br />
22 A. I recall that. Yes, sir.<br />
23 Q. And that was not for money that was owed by<br />
24 Silversea to Mr. Peter.<br />
25 You agreed with that. Correct?
1 A. Yes, sir.<br />
Page 90<br />
2 Q. Then I believe that money went from RRA to<br />
3 an account in Ms. Yoel's name in Zurich.<br />
4 Are you familiar with that?<br />
5 A. I seem to recall that being the case.<br />
6 Do you have the wire document?<br />
7 Q. I do have the wire document.<br />
8 Actually, if you take a look at<br />
9 <strong>Trustee</strong> AP00085 ---<br />
10 A. One second, please.<br />
11 Yes. I see that.<br />
12 Q. I want to lay a foundation.<br />
13 Are you aware that Ms. Yoel had a bank<br />
14 account located in South Florida?<br />
15 A. I don't know one way or the other. I would<br />
16 imagine she did -- she lived there -- but I don't<br />
17 know one way or the other.<br />
18 Q. If Ms. Yoel was intending to buy a<br />
19 condominium with this $400,000 -- and I'll pr<strong>of</strong>fer to<br />
20 you that it is not in dispute that the money was used<br />
21 for that purpose -- can you explain why, if you know,<br />
22 she directed the money to go from RRA's account to an<br />
23 account in Switzerland to buy property in South<br />
24 Florida?<br />
25 A. She directed no such thing. That was
1 directed by <strong>Albert</strong>.<br />
Page 91<br />
2 Q. Do you know why <strong>Albert</strong> directed that?<br />
3 A. The only thing that I know is that he told<br />
4 me to send it to this particular account in<br />
5 Switzerland.<br />
6 Q. I have an e-mail that is marked -- I'm<br />
7 going to mark it as an exhibit.<br />
8 It's an e-mail -- sort <strong>of</strong> a composite <strong>of</strong><br />
9 sorts -- that includes this -- all the communications<br />
10 on it.<br />
11 This is going to be Exhibit 4, which we'll<br />
12 give to the court reporter.<br />
13 It's an e-mail trail with you and,<br />
14 effectively, <strong>Albert</strong> on one hand getting copied,<br />
15 John Harris and Lisa Ellis.<br />
16 (Whereupon, the document referred to was<br />
17 marked Plaintiff's Exhibit No. 4 for Identification.)<br />
18 Q. On October 24, 2006 you wrote to Mr. Harris<br />
19 and Ms. Ellis with a copy to Irene Shannon and a copy<br />
20 to <strong>Albert</strong> the following: Pursuant to instructions<br />
21 received from <strong>Albert</strong> Peter in his capacity as CEO <strong>of</strong><br />
22 Silversea Cruises LLC please wire 400,000 which we<br />
23 have been holding for Silversea's benefit in our<br />
24 trust account 0050012053 to the account below<br />
25 immediately. Thanks in advance for your prompt
1 attention to this most urgent matter. Should you<br />
Page 92<br />
2 have any questions please free to call me directly.<br />
3 Should you have any questions regarding the wiring<br />
4 data below, you may contact the bank at the numbers<br />
5 listed below. Please provide me with confirmation <strong>of</strong><br />
6 the wire via your bank's standard e-mail protocol.<br />
7 Thanks again, <strong>Scott</strong>.<br />
8 Do you recall that e-mail?<br />
9 A. I do.<br />
10 Q. Tell me what you recall about the<br />
11 circumstances surrounding your drafting and sending<br />
12 <strong>of</strong> that e-mail.<br />
13 A. It was subsequent to me receiving<br />
14 instructions from <strong>Albert</strong> as to somehow he wants to<br />
15 dispose <strong>of</strong> the $400,000 that he had embezzled from<br />
16 the company.<br />
17 Q. Did he discuss with you the nature <strong>of</strong> the<br />
18 account that was in Ms. Yoel's name in Zurich?<br />
19 A. I don't recall one way or the other, other<br />
20 than telling me to send the money there.<br />
21 Q. Was this $400,000 in any way related to the<br />
22 fraudulent scheme that you described here earlier<br />
23 today?<br />
24 I note that it came at the same point in<br />
25 time.
1 A. You'd have to see if it ties to one <strong>of</strong> the<br />
2 fraudulent bills.<br />
3 I mean <strong>of</strong>f the top <strong>of</strong> my head I don't know<br />
4 how <strong>Albert</strong> would have directed the money to get to me<br />
5 unless I sent him a fraudulent bill so that he could<br />
6 send it, so I can't tell you without seeing the<br />
7 documentation.<br />
8 Q. Your understanding from your direct<br />
9 conversations with Mr. Peter was he admitted to you<br />
10 that it was an embezzlement?<br />
11 A. Not using those words, but, yes, he said,<br />
12 "I'm just going to take the money from Silversea and<br />
13 you'll send it from there," because he originally<br />
14 asked me, Mr. Lichtman, if I could just send her the<br />
15 money.<br />
16 Q. When he said, "Could you just send the<br />
17 money," that would have been because he would have<br />
18 hoped that he had about at least $400,000 somewhat<br />
19 coming to him as a result <strong>of</strong> the fraudulent billing<br />
20 scheme.<br />
21 Is that a fair statement?<br />
22 A. That's a fair statement. Yes, sir.<br />
23 Q. This is probably a fairly good breaking<br />
24 point right now for lunch if it works for you.<br />
25 A. Whatever is good for you is good for us.<br />
Page 93
1 Q. Whatever is good for you is good for me.<br />
Page 94<br />
2 MR. LaVECCHIO: All right. What time do<br />
3 you want to be back?<br />
4 THE WITNESS: Let's break.<br />
5 MR. LICHTMAN: Half hour?<br />
6 MR. NURIK: Half hour.<br />
7 THE WITNESS: See you then.<br />
8 MR. LICHTMAN: I'm well through my<br />
9 interrogation.<br />
10 (Whereupon, a lunch break was taken, after<br />
11 which the deposition resumed)<br />
12 Q. Yesterday briefly in the Rule 2004 exam,<br />
13 <strong>Scott</strong>, you mentioned something about fake bonds as it<br />
14 pertained to Silversea Cruises and <strong>Albert</strong> Peter.<br />
15 Do you recall that?<br />
16 A. I do.<br />
17 Q. Describe for me the transaction or events<br />
18 that you were alluding to in a general sense and then<br />
19 we'll narrow it down from there as it pertains to<br />
20 these fake bonds.<br />
21 A. On several occasions one <strong>of</strong> the<br />
22 methodologies that <strong>Albert</strong> and I used to embezzle<br />
23 money from Silversea was by telling those in control<br />
24 at Silversea that we had to pay certain bonds and the<br />
25 like. Paperwork was submitted to support it and the
1 moneys were paid.<br />
Page 95<br />
2 Q. Where would I find those documents? What<br />
3 do they look like?<br />
4 A. They should be e-mails.<br />
5 Q. Is there anything besides the e-mails? Are<br />
6 there, for instance, like fake bond documents?<br />
7 A. No, sir.<br />
8 Q. The Morse case comes to mind where you had<br />
9 like falsified court orders from Judge Marra.<br />
10 You recall that obviously?<br />
11 A. I do.<br />
12 Q. Are there any fake court orders that I<br />
13 should look at or is it simply follow the e-mail<br />
14 trail?<br />
15 A. I don't recall doing any fake documents<br />
16 with regard to the Silversea. It was a much easier<br />
17 thing because <strong>of</strong> <strong>Albert</strong>'s position in the company.<br />
18 Q. Meaning because he was inside and because<br />
19 he was complicit with you, you could accomplish that<br />
20 which you needed?<br />
21 A. Yes.<br />
22 Q. Do you recall what cases the bonds<br />
23 pertained to?<br />
24 A. I do not.<br />
25 Q. Were they actually existing cases?
1 A. They may have either been existing cases or<br />
2 made up cases. Probably existing cases, but I'd be<br />
3 guessing.<br />
4 Q. Let me mention some case names and see if<br />
5 this might refresh your memory.<br />
6 Clayton?<br />
7 A. It may very well be.<br />
8 Q. I'd have to just ---<br />
9 A. There should be e-mail traffic saying to<br />
10 the people at Silversea that we've got to post this<br />
11 money.<br />
12 Q. What was the typical amount that you were<br />
13 seeking?<br />
14 A. I distinctly -- I don't think there was a<br />
15 typical amount. It could have been anywhere from a<br />
16 few hundred thousand dollars -- I think I remember<br />
17 one that was like $750,000. I don't recall exactly.<br />
18 Q. You have an invoice for services rendered,<br />
19 I believe, in the amount <strong>of</strong> 750,000 somewhere.<br />
20 That was a bond deal?<br />
21 A. I believe it was.<br />
22 I have a very distinct recollection <strong>of</strong><br />
23 having a conversation with Manfredi. I was on my<br />
24 cell phone, I believe. I was living at 2308 Castilla<br />
25 at the time and I was out by the pool on the phone<br />
Page 96
1 with Manfredi talking to him about the need to post<br />
Page 97<br />
2 a very large bond, and I think that was it.<br />
3 Q. Who knew about the fake bonds besides you<br />
4 and besides <strong>Albert</strong>?<br />
5 A. <strong>Albert</strong>, Irene, and Debra.<br />
6 Q. Did they prepare any paperwork that<br />
7 facilitated the fake bond scheme or was it just<br />
8 purely the e-mails that you referenced?<br />
9 A. I think it's just the e-mails.<br />
10 Q. There came a point in time that you learned<br />
11 that <strong>Albert</strong> was no longer going to be an employee <strong>of</strong><br />
12 Silversea cruises. Is that correct?<br />
13 A. That's correct.<br />
14 Q. Do you recall the timeframe <strong>of</strong> when you<br />
15 learned that?<br />
16 A. End <strong>of</strong> '06. Something like that.<br />
17 What was his last date <strong>of</strong> employment? It<br />
18 would have been three to four months from that.<br />
19 Q. Well, I have a document here that you don't<br />
20 have in front <strong>of</strong> you unfortunately. This is an<br />
21 e-mail from you to <strong>Albert</strong> dated January 14, 2007<br />
22 enclosing a transition agreement.<br />
23 Does that help you?<br />
24 A. Yeah. It would have been four to five<br />
25 months prior to that when we first figured out he was
1 going to be asked to leave.<br />
Page 98<br />
2 Q. What was it that led you to conclude he was<br />
3 going to be asked to leave the company?<br />
4 A. Conversations that he had with Manfredi and<br />
5 conversations that I had with Manfredi and Amerigo.<br />
6 Q. Describe the conversations that you had<br />
7 with Manfredi and Amerigo.<br />
8 A. They had told me that they were having<br />
9 issues with <strong>Albert</strong> and his expense account -- <strong>Albert</strong><br />
10 and staff -- mostly with the expense account -- and<br />
11 other things that they thought <strong>Albert</strong> might be doing<br />
12 relative to the company.<br />
13 Q. What other things?<br />
14 A. I don't remember -- I don't remember what<br />
15 the other things were, but the main thing was his<br />
16 expense account and that they could not afford to<br />
17 continue to support his lifestyle and his mistresses<br />
18 and they were seeking advice from me on how best to<br />
19 transition him out without getting engaged in a major<br />
20 legal action with him.<br />
21 Q. Was it your understanding that he was being<br />
22 terminated with cause?<br />
23 A. You'd have to look at the transition<br />
24 agreement. I think that we were trying to make it so<br />
25 that he was going to get out clean, but I don't
1 recall what we put in the termination agreement --<br />
Page 99<br />
2 transition agreement. I think we tried to make it<br />
3 nebulous.<br />
4 Q. I'm not talking so much about what the<br />
5 agreements provide. I'm talking about the de facto<br />
6 reason why <strong>Albert</strong> was leaving Silversea.<br />
7 What was your understanding as to whether<br />
8 <strong>Albert</strong>'s termination was with cause or without cause?<br />
9 A. With cause.<br />
10 Q. And was the "with cause" termination for<br />
11 those reasons that you indicated just a couple<br />
12 moments before -- dealing with his expense account<br />
13 issues, supporting girlfriends, et cetera?<br />
14 A. Yes.<br />
15 Q. You realize that the $400,000 payment for<br />
16 the benefit <strong>of</strong> Tatiana Yoel and her condominium came<br />
17 in October, 2006.<br />
18 Do you have any basis to know whether or<br />
19 not that payment was one <strong>of</strong> the reasons why <strong>Albert</strong><br />
20 was being terminated with cause?<br />
21 A. I don't recall specifically, Mr. Lichtman.<br />
22 I just recall the fact that both Manfredi and Amerigo<br />
23 both believed that <strong>Albert</strong> was embezzling money from<br />
24 the company and they needed to bring it to a stop.<br />
25 Q. That's their language?
1 A. Amerigo used the word "embezzled" --<br />
Page 100<br />
2 Amerigo used the word "embezzlement" -- and Manfredi<br />
3 used the words "stealing from me".<br />
4 Q. When you learned this from Amerigo and from<br />
5 Manfredi, what did you do?<br />
6 A. I told <strong>Albert</strong>.<br />
7 Q. What did <strong>Albert</strong> say?<br />
8 A. That he had already had a couple <strong>of</strong><br />
9 conversations with Manfredi where Manfredi was<br />
10 clearly on the cusp <strong>of</strong> terminating him and that he<br />
11 had a feeling it was coming based on the way Amerigo<br />
12 and Manfredi were acting and that I needed to do<br />
13 whatever I could to either try to save his job or<br />
14 protect him on the way out.<br />
15 Q. And what did you do?<br />
16 A. At various points in time I tried to<br />
17 massage the situation to keep <strong>Albert</strong> there because<br />
18 he was a cash cow for us there.<br />
19 Subsequently when it was clear that the<br />
20 handwriting was on the wall and he was going to<br />
21 be -- he was going to leave politely or he was<br />
22 going to be forced out -- I had several meetings<br />
23 with <strong>Albert</strong> where I told him that I would protect<br />
24 his interests and he just needed to work with me<br />
25 and follow my instructions. That's all.
1 Q. And how was it that you were contemplating<br />
2 protecting his interests?<br />
3 A. By guiding him into avoiding conflict and<br />
4 by lying to Manfredi and Amerigo about what was going<br />
5 on so that they would feel that it was in their best<br />
6 interest to release him with this transition<br />
7 agreement as opposed to engaging in an all out war<br />
8 with him.<br />
9 Q. When you say you were lying to them about<br />
10 what was going on, what was it you were lying about?<br />
11 A. I told them that they were on poor legal<br />
12 footing with regard to their claims against him. I<br />
13 told them that he was extremely vindictive and that<br />
14 Manfredi could expect to have all his dirty laundry<br />
15 aired in public in the cruise community, which is a<br />
16 very small close-knit community.<br />
17 Q. So I think we've now moved from the<br />
18 category <strong>of</strong> what you contemplated doing to what you<br />
19 actually did to protect <strong>Albert</strong>.<br />
20 Those three things that you just<br />
21 mentioned -- those are things that you actually did<br />
22 then -- in terms <strong>of</strong> telling Silversea that they were<br />
23 on poor legal footing, that <strong>Albert</strong> was vindictive,<br />
24 and that <strong>Albert</strong> would air Manfredi's dirty laundry.<br />
25 That's really two things.<br />
Page 101
1 Is that ---<br />
Page 102<br />
2 A. Yes. I basically, for lack <strong>of</strong> a better<br />
3 term, explained the doctrine <strong>of</strong> mutually assured<br />
4 destruction to Manfredi as it applied to Manfredi,<br />
5 Silversea and Amerigo, that no one was going to win<br />
6 if he fired <strong>Albert</strong>, that they best part on good<br />
7 terms.<br />
8 I also lied to him and told him that we<br />
9 needed <strong>Albert</strong> as a positive witness for us in other<br />
10 litigation that we had, and that it was to nobody's<br />
11 benefit to terminate him.<br />
12 Q. Was the issue <strong>of</strong> reputation to Manfredi<br />
13 important?<br />
14 A. Extremely.<br />
15 Q. Tell me your understanding as to why that<br />
16 was so important to him.<br />
17 A. You have to know Manfredi and have spent<br />
18 significant time with him to really understand,<br />
19 but he is -- as far as his public persona he was<br />
20 Roman -- not just Italian, but Roman Italian. Came<br />
21 from an extremely wealthy family.<br />
22 My understanding is that his father was<br />
23 actually legal counsel to Mussolini and he was very<br />
24 well respected, a citizen <strong>of</strong> Monaco, a citizen <strong>of</strong><br />
25 Rome, Italy, and that these kind <strong>of</strong> things -- almost
1 like royalty -- and that anything <strong>of</strong> this nature that<br />
2 would cause a smear on the family was frowned upon.<br />
3 On top <strong>of</strong> that, most critically, one <strong>of</strong><br />
4 the biggest pressure points that I learned about from<br />
5 <strong>Albert</strong> subsequently discussed with Manfredi to be<br />
6 utilized was that Manfredi had an extremely<br />
7 adversarial relationship with his brother and they<br />
8 were both vying for their father's affection and<br />
9 money, and so he could not afford to have anything<br />
10 like this made public.<br />
11 Q. And, hence, you used against Manfredi the<br />
12 potential scandal <strong>of</strong> him having visited with<br />
13 prostitutes in South Florida as the tool to control<br />
14 him.<br />
15 Is that a fair statement?<br />
16 A. Yes. That, in combination with something<br />
17 that <strong>Albert</strong> had told me about that I confirmed<br />
18 ultimately with Manfredi when I confronted him about<br />
19 it, that some money had actually been embezzled by<br />
20 Manfredi out <strong>of</strong> the company through the purchase and<br />
21 sale <strong>of</strong> expensive paintings.<br />
22 Q. Did that, in fact, occur, to the best <strong>of</strong><br />
23 your knowledge?<br />
24 A. To the best <strong>of</strong> my knowledge, yes.<br />
25 Q. Was that part <strong>of</strong> a lawsuit?<br />
Page 103
1 A. I don't recall it being part <strong>of</strong> a lawsuit.<br />
2 If it was, it was unbeknownst to me, but I do recall<br />
3 the fact that -- I remember discussing with Manfredi<br />
4 and Amerigo the fact that they were having problems<br />
5 with other shareholders <strong>of</strong> Silversea relative to the<br />
6 amount <strong>of</strong> money Manfredi had taken out <strong>of</strong> the<br />
7 company, and some things with some artwork on some<br />
8 ships and the like.<br />
9 Q. There was some litigation involving a<br />
10 foreign company I believe that was suing and trying<br />
11 to assert that Manfredi had participated in the<br />
12 conduct <strong>of</strong> Silversea's business and you needed to<br />
13 establish that he really wasn't active or in control.<br />
14 Do you recall that generally?<br />
15 A. I do. What was the name <strong>of</strong> that<br />
16 litigation? I do recall that.<br />
17 Q. I don't recall right now. Something<br />
18 Etcie, E-T-C-I-E?<br />
19 A. Yes. Yes. Bingo.<br />
20 That's the litigation that Lippman was<br />
21 working on.<br />
22 Q. In that litigation, was that case handled<br />
23 above board, or was there impropriety in handling<br />
24 that case?<br />
25 A. There was impropriety in handling that<br />
Page 104
1 case both from a transmittal <strong>of</strong> false information to<br />
2 opposing counsel and to the courts and phony<br />
3 billings.<br />
4 Q. I think it's Attel, A-T-T-E-L.<br />
5 Does that sound right?<br />
6 A. Yes. That is right, and the actual<br />
7 managing lawyer to the Attel litigation to the best<br />
8 <strong>of</strong> my recollection was Steve Lippman.<br />
9 Q. What was the false information that was<br />
10 transmitted to Courts?<br />
11 A. I'd have to see the file, Mr. Lichtman.<br />
12 Q. Do you have a general recollection?<br />
13 A. There's a lot <strong>of</strong> it. It had to do with how<br />
14 much control Manfredi had over certain things and it<br />
15 had to do with where he lived most <strong>of</strong> the time, his<br />
16 residence. There were all kinds <strong>of</strong> things.<br />
17 Really, if I could see the file I could be<br />
18 <strong>of</strong> tremendous help with regard to that specific set<br />
19 <strong>of</strong> issues because I had totally forgot about that<br />
20 case until you just started talking about the foreign<br />
21 litigation.<br />
22 Q. Who was responsible for submitting false<br />
23 information to the Court?<br />
24 A. Me, Mr. Lippman, Manfredi, Amerigo and<br />
25 <strong>Albert</strong>, to the extent that he was present during<br />
Page 105
1 those times.<br />
Page 106<br />
2 Q. Is this in the form <strong>of</strong> affidavits?<br />
3 A. Yes.<br />
4 Q. So if I was to pull the affidavits, that<br />
5 would probably lead me in the direction and you<br />
6 could confirm later whether or not they were false<br />
7 affidavits.<br />
8 Is that a fair statement?<br />
9 A. I could, and I could probably also tell you<br />
10 anybody else that may have been involved with that<br />
11 litigation.<br />
12 You actually have to look inside -- you<br />
13 actually have to look inside the files, Mr. Lichtman,<br />
14 because there was a period <strong>of</strong> time when every bill<br />
15 going to Silversea was eventually changed or a bulk<br />
16 <strong>of</strong> entries were changed to my initials despite the<br />
17 fact that I was doing very little actual legal work<br />
18 on the files for billing and appearance purposes, but<br />
19 if you look on the inside <strong>of</strong> the file you'll be able<br />
20 to tell who was actually doing the work and who was<br />
21 involved in the fraud.<br />
22 Q. Do you recall who changed the billing<br />
23 information?<br />
24 A. Myself and Mr. Lippman.<br />
25 Q. Do you recall who drafted the false
1 affidavits?<br />
Page 107<br />
2 A. I'd have to see the affidavits to tell you<br />
3 for certain.<br />
4 Q. Did you discuss with the team that you had<br />
5 just mentioned before the fact that the information<br />
6 contained within the affidavits was false?<br />
7 A. I did.<br />
8 Q. And was that submitted to the Court in<br />
9 order to obtain a specific result?<br />
10 A. My recollection is that it was.<br />
11 Q. Was this federal court or state court?<br />
12 A. I don't recall one way or the other.<br />
13 You've got to look at the file.<br />
14 Q. Was there also fraudulent billing in<br />
15 connection with this file?<br />
16 A. There was.<br />
17 Q. I actually didn't know I was going to be<br />
18 getting into that right now so I want to go back -- I<br />
19 think that I've covered that for now, but I want to<br />
20 go back to the issue <strong>of</strong> <strong>Albert</strong>'s discharge from the<br />
21 company.<br />
22 A. Okay.<br />
23 Q. You said that you had lied to Silversea in<br />
24 stating that their claim was on poor legal footing.<br />
25 Did I hear you correctly?
1 A. I'm sorry. Can you repeat the question?<br />
Page 108<br />
2 Q. You said that you had lied to Silversea<br />
3 about them being on poor legal footing with respect<br />
4 to <strong>Albert</strong>'s termination from the company.<br />
5 Did I understand you correctly?<br />
6 A. Yes, sir.<br />
7 Q. Did Mr. Peter have an employment agreement?<br />
8 A. I don't recall whether he did or not.<br />
9 Q. Do you recall if he was terminable at will?<br />
10 A. I don't recall <strong>of</strong>f the top <strong>of</strong> my head.<br />
11 I'd need to see the agreements and the<br />
12 transition agreement. I just don't recall.<br />
13 Q. What is it that you recall lying to<br />
14 Silversea about concerning Mr. Peter?<br />
15 A. The main thing was that he was going to go<br />
16 to the media and blast Manfredi.<br />
17 The other thing was that if they did engage<br />
18 in litigation with him, that the skeletons in<br />
19 Manfredi's closet and in the company's closet would<br />
20 ultimately be exposed, placing them on weak legal<br />
21 footing and also poor PR footing if they proceeded<br />
22 with such litigation.<br />
23 Q. When you used the phrase earlier "poor<br />
24 legal footing," were there legal theories <strong>of</strong> relief<br />
25 or legal arguments that you misstated to Silversea?
1 A. I don't recall that we specifically got<br />
Page 109<br />
2 into very many actual legal discussions. Manfredi's<br />
3 main thing was to avoid the expenditure <strong>of</strong> what I<br />
4 told him would be hundreds <strong>of</strong> thousands <strong>of</strong> dollars in<br />
5 additional legal fees, only to have no one actually<br />
6 really win the litigation, but, on the other hand, if<br />
7 they let him go nice and quietly under at least<br />
8 semi-decent terms, that they would have a friend if<br />
9 there was future litigation that he needed to testify<br />
10 in, and since it was likely that <strong>Albert</strong> was going to<br />
11 remain in the cruise industry, that he would be able<br />
12 to engage on a pr<strong>of</strong>essional level with him as opposed<br />
13 to an adversarial level.<br />
14 Q. Did <strong>Albert</strong> know that you were having these<br />
15 conversations with Silversea where you were telling<br />
16 Manfredi and Amerigo that <strong>Albert</strong> was going to be<br />
17 vindictive and divulge all <strong>of</strong> this highly sensitive<br />
18 information about Manfredi?<br />
19 A. Yes.<br />
20 Q. How is it that he knew?<br />
21 A. How did <strong>Albert</strong> know that?<br />
22 Q. Yeah.<br />
23 A. <strong>Albert</strong> and I discussed it. We came up with<br />
24 the whole plan.<br />
25 Q. How <strong>of</strong>ten did you discuss that with <strong>Albert</strong>
1 once it became clear he was leaving the company?<br />
Page 110<br />
2 A. Sometimes daily. As we got closer and<br />
3 closer to the trip to London to finally put an end to<br />
4 this it was daily I was having meetings with <strong>Albert</strong>.<br />
5 I was having meetings with people at my law<br />
6 firm to discuss strategy. I was having at the very<br />
7 least telephone meetings with Manfredi and Amerigo<br />
8 about this, and strategizing as to how we were going<br />
9 to put this in play.<br />
10 I was doing everything I could to work both<br />
11 sides to make sure that this went smoothly.<br />
12 Q. Is it a fair statement that Silversea<br />
13 representatives, specifically Amerigo and Manfredi,<br />
14 did not know that you were during this period <strong>of</strong> time<br />
15 communicating daily with <strong>Albert</strong> Peter?<br />
16 A. I don't know if they knew how much I was<br />
17 communicating with him. I do believe that they had<br />
18 no idea what I was communicating with him about.<br />
19 Q. Let me rephrase the question, because I<br />
20 think from reading some e-mails -- and tell me if I'm<br />
21 wrong -- they actually knew that you were having some<br />
22 communications with <strong>Albert</strong> because you were<br />
23 intentionally acting as a go-between to pacify the<br />
24 situation.<br />
25 Is that a fair statement?
1 A. Yes, sir.<br />
Page 111<br />
2 Q. What they didn't know was that you were as<br />
3 close to <strong>Albert</strong> as you were and that you were working<br />
4 the situation for his benefit. Is that correct?<br />
5 A. That's correct.<br />
6 Q. You certainly did not say to anyone at<br />
7 Silversea that you were completely independent and<br />
8 were representing only Silversea's interests and<br />
9 divulge that you were actually working at the same<br />
10 time for <strong>Albert</strong>'s interests. Correct?<br />
11 That was terrible. That's a bad question.<br />
12 (Discussion <strong>of</strong>f the record.)<br />
13 Q. It's a fair statement that you never told<br />
14 anyone at Silversea that you were actually<br />
15 negotiating for the benefit <strong>of</strong> <strong>Albert</strong>. Correct?<br />
16 A. That's correct.<br />
17 Q. Did you ever tell anyone at Silversea that<br />
18 you were going to tell <strong>Albert</strong> to get independent<br />
19 counsel?<br />
20 A. Yes.<br />
21 Q. Did you get <strong>Albert</strong> independent counsel?<br />
22 A. No. Oh. Wait a second. You know what?<br />
23 We may have had someone pretend to be <strong>Albert</strong>'s<br />
24 lawyer.<br />
25 Q. I saw an e-mail that suggested as much.
1 A. I totally forgot about that.<br />
Page 112<br />
2 Q. Would that have been, by chance, Doug<br />
3 Bates?<br />
4 A. I believe you're correct.<br />
5 (Discussion <strong>of</strong>f the record.)<br />
6 Q. Did there come a point in time where<br />
7 <strong>Albert</strong> was, in fact, terminated?<br />
8 A. Well, there was a transition, yes. He<br />
9 left the company.<br />
10 Q. I have in front <strong>of</strong> me -- these are some<br />
11 <strong>of</strong> the documents that I received from Silversea<br />
12 afterwards, and we didn't see anything in the RRA<br />
13 files, but it's an e-mail dated January 14, 2007 that<br />
14 you sent to <strong>Albert</strong> that enclosed a transition<br />
15 agreement.<br />
16 It discusses "your smooth and amicable<br />
17 transition from CEO at Silversea to Deputy Chairman<br />
18 <strong>of</strong> Silversea Leisure and Travel."<br />
19 Do you recall preparing that agreement<br />
20 and the cover e-mail?<br />
21 A. I do.<br />
22 Q. First, by January 14th when you prepared<br />
23 this transition agreement, or transmitted the<br />
24 transition agreement, was <strong>Albert</strong> already gone from<br />
25 being an employee or was he still there?
1 A. I think at that point in time -- you know<br />
Page 113<br />
2 what, Mr. Lichtman? I'd be guessing.<br />
3 I have a recollection that at the very end<br />
4 he'd be locked out <strong>of</strong> the <strong>of</strong>fices, but I can't be<br />
5 certain.<br />
6 Q. The letter that you referenced discusses<br />
7 his transitioning from CEO at Silversea Cruise<br />
8 Holding LTD -- that was the position that he held<br />
9 while you were embezzling money with him. Correct?<br />
10 A. That's correct.<br />
11 Q. And he was moving to become deputy chairman<br />
12 <strong>of</strong> Silversea Leisure and Travel.<br />
13 Did you recall that?<br />
14 A. I recall that, but that's just a crock.<br />
15 Q. Yes. When you say "crock," what do you<br />
16 mean by that?<br />
17 A. I apologize.<br />
18 It was a created position so as to enable<br />
19 them to properly publically transition <strong>Albert</strong> out <strong>of</strong><br />
20 the company without smearing him all over the place.<br />
21 Q. Was it your idea to come up with that<br />
22 reassignment?<br />
23 A. It was <strong>Albert</strong>'s idea.<br />
24 Q. What is Silversea Leisure and Travel?<br />
25 A. I have no idea. Could be another real
1 company, but <strong>Albert</strong> never did anything for them.<br />
Page 114<br />
2 He was supposed to be a consultant and<br />
3 available from time to time, but there was never any<br />
4 real involvement with that. It was a fiction.<br />
5 Q. Purely for public relations purposes.<br />
6 Correct?<br />
7 A. Yes.<br />
8 Q. The agreement that I have, which is<br />
9 unsigned, references a transition period <strong>of</strong> 30 days<br />
10 from the date <strong>of</strong> execution <strong>of</strong> the agreement.<br />
11 Unfortunately, it's unsigned.<br />
12 Do you know if and when the document<br />
13 actually was signed?<br />
14 A. Eventually a document was signed. I don't<br />
15 know if it's that document, and I don't even know if<br />
16 it still had that position in it. I just don't<br />
17 recall one way or the other.<br />
18 Q. Was there more than one agreement signed,<br />
19 because we have no signed agreements.<br />
20 We know that you had prepared this draft<br />
21 transition agreement and we know that there was also<br />
22 a -- at least discussion <strong>of</strong> there being a termination<br />
23 agreement.<br />
24 A. I don't recall one way or the other. My<br />
25 recollection -- my best recollection is that there
1 was an agreement ultimately signed, but I don't have<br />
2 specific recollection and I do not want to guess.<br />
3 Q. I have an e-mail from -- it's an e-mail<br />
4 from Amerigo to you. It's dated February 14, 2007.<br />
5 That's roughly a month later.<br />
6 In it Amerigo asks you just one<br />
7 question -- when is <strong>Albert</strong> eventually time barred<br />
8 on suing Silversea for any matters related to his<br />
9 employment with the company -- and you answered<br />
10 that same day -- actually instantly the same minute<br />
11 -- "four years from now."<br />
12 That suggests to me that there was no<br />
13 release that was provided by <strong>Albert</strong> to the company.<br />
14 Do you have any recollection or<br />
15 understanding <strong>of</strong> that fact?<br />
16 A. I don't know whether that's ultimately what<br />
17 happened or whether I was simply providing that<br />
18 information to Amerigo in the event something was<br />
19 never signed.<br />
20 Q. You would agree, would you not, that if<br />
21 there was a signed agreement with a release that the<br />
22 issue <strong>of</strong> a claim being time barred would not be<br />
23 relevant. Correct?<br />
24 A. That's correct, but that doesn't mean that<br />
25 Amerigo would understand that necessarily.<br />
Page 115
1 Q. And it also doesn't mean the possibility<br />
Page 116<br />
2 that after the date <strong>of</strong> that e-mail an agreement was<br />
3 signed that contained a release. Right?<br />
4 A. That's correct.<br />
5 Q. I have an e-mail here from Amerigo to you<br />
6 and Manfredi this is dated January 19, 2007.<br />
7 It states: <strong>Scott</strong>, please find attached --<br />
8 this is, by the way, Bates stamped T-AP00254.<br />
9 Let me go back now that I put that on the<br />
10 record. January 19, 2007, from Amerigo to you, copy<br />
11 to Manfredi: <strong>Scott</strong>, please find attached the results<br />
12 <strong>of</strong> the preliminary audit on <strong>Albert</strong>'s T&E expenses for<br />
13 2006. The amounts that are either definitely not<br />
14 admissible for reimbursement or, quote, prima facie<br />
15 not admissible for reimbursement, are over one<br />
16 million over the 12-month period, and we are, <strong>of</strong><br />
17 course, missing two weeks in January.<br />
18 Do you recall that e-mail?<br />
19 A. I do.<br />
20 Q. Do you recall the circumstances or the<br />
21 facts that you were told respecting that one million<br />
22 dollar figure?<br />
23 A. Give me the date <strong>of</strong> the e-mail again<br />
24 please.<br />
25 Q. January 19, 2007.
1 A. Do you have the dates that we traveled to<br />
Page 117<br />
2 London for the meeting?<br />
3 Q. No, but I believe it to have been after<br />
4 that.<br />
5 A. To the best <strong>of</strong> my recollection,<br />
6 Mr. Lichtman, as we were nearing the time for the<br />
7 ultimate and final transition <strong>of</strong> <strong>Albert</strong> out <strong>of</strong> the<br />
8 company, Silversea was doing everything it could to,<br />
9 quote, unquote, load itself for bear to protect<br />
10 itself from what it perceived -- with regard to what<br />
11 it perceived was a threatening position that <strong>Albert</strong><br />
12 might take -- and so I do recall there being an audit<br />
13 occurring and other investigations internally at<br />
14 Silversea, both in the Fort Lauderdale <strong>of</strong>fice and in<br />
15 the home <strong>of</strong>fice in Monaco, with regard to <strong>Albert</strong> and<br />
16 his expenditures and the like.<br />
17 Q. What did you learn about the one million<br />
18 dollar overcharge <strong>of</strong> reimbursable costs by <strong>Albert</strong>?<br />
19 A. Well, when I first heard it, it was -- I<br />
20 remember discussing with <strong>Albert</strong> that it seemed to be<br />
21 a lot less than <strong>Albert</strong> thought they were going to tag<br />
22 him with, and that it was a point <strong>of</strong> pressure on<br />
23 <strong>Albert</strong> because I was telling <strong>Albert</strong> also that he<br />
24 could end up in a very bad position if we don't<br />
25 resolve this, because you've got to remember it was
1 my position that I needed to satiate -- get <strong>Albert</strong><br />
Page 118<br />
2 out, to get Silversea out <strong>of</strong> there so that ultimately<br />
3 this didn't come back at RRA.<br />
4 Q. When you say "come back at RRA," because <strong>of</strong><br />
5 the fraudulent billing?<br />
6 A. Yes.<br />
7 Q. Do you know if the one million dollar<br />
8 accounting by Amerigo included $400,000 to Tatiana<br />
9 Yoel, or for her benefit?<br />
10 A. I don't. No. I don't believe it did.<br />
11 I could be mistaken, but the reason I don't<br />
12 believe that it did, Mr. Lichtman, is because their<br />
13 audit was a travel and entertainment audit -- that's<br />
14 what he was referring to -- so I don't know where<br />
15 they got that $400,000.<br />
16 Q. That money was payable ---<br />
17 A. You have to ---<br />
18 Q. That money went from Silversea to RRA,<br />
19 notwithstanding. Right?<br />
20 A. Yes.<br />
21 Q. There's an e-mail that Amerigo -- hold on.<br />
22 I want to make sure it's Amerigo the way I'm reading<br />
23 this -- no -- that Manfredi wrote to you and Amerigo<br />
24 on January 22, 2007, and in it he talks about the<br />
25 expenses being subject to scrutiny and other senior
1 executives have had refused expenses, but <strong>Albert</strong>'s<br />
Page 119<br />
2 were being put through.<br />
3 It talks about -- here's a comment:<br />
4 Morally how can someone who has been charging his<br />
5 home expenses and presents to numerous lovers<br />
6 complain about marginal mistakes made by making it a<br />
7 one week <strong>of</strong> a review <strong>of</strong> the expenses that he has<br />
8 omitted to make for over three months knowing <strong>of</strong> the<br />
9 appropriations <strong>of</strong> which he is responsible.<br />
10 Do you remember that e-mail?<br />
11 A. I have a vague recollection <strong>of</strong> it.<br />
12 Q. Do you recall having conversations with<br />
13 Manfredi or Amerigo about the nature <strong>of</strong> the<br />
14 overcharges, particularly as it pertained to the<br />
15 phrase that Manfredi used, being "numerous lovers"?<br />
16 A. Yes.<br />
17 Q. What is your recollection <strong>of</strong> those<br />
18 discussions?<br />
19 A. Manfredi and <strong>Albert</strong> were arguing over who<br />
20 was the more morally reprehensible person. That's<br />
21 the way the conversations -- the conversations<br />
22 generally denigrated to that point in time.<br />
23 It was quite candidly like children in a<br />
24 schoolyard, and Manfredi was really pushing the point<br />
25 that he wanted me to push the point with <strong>Albert</strong> that
1 just like that Freddy had skeletons, <strong>Albert</strong>, too, had<br />
2 skeletons.<br />
3 It was more <strong>of</strong> Manfredi feeling a need to<br />
4 push back than anything else.<br />
5 Q. You wrote back to Amerigo and copied<br />
6 Manfredi and you said that -- this is your e-mail<br />
7 back. It's also on January 22nd. This is page<br />
8 T-AP00255: Amerigo, hope all is going great. Just<br />
9 wrapped up for the evening with <strong>Albert</strong>. He's been<br />
10 going through the expenses in detail. We made it<br />
11 through a lot <strong>of</strong> legal issues in the agreement today.<br />
12 Important question: Did we do anything to ensure<br />
13 that all this belongs to him? Some <strong>of</strong> the items are<br />
14 an impossibility. We can discuss tomorrow, for<br />
15 example, move from South Beach to Fort Lauderdale.<br />
16 Do you recall that portion <strong>of</strong> the e-mail?<br />
17 A. I do not.<br />
18 Q. I just by luck found this. I see an<br />
19 e-mail from <strong>Albert</strong> to Manfredi dated Saturday<br />
20 January 20, 2007, and it says: Will you be in London<br />
21 tomorrow? I need to move forward and would like to<br />
22 close the chapter in a mutually beneficial way.<br />
23 Again, that's January 20th.<br />
24 Does that refresh your recollection as to<br />
25 when you went to London?<br />
Page 120
1 A. Yeah. It would have been right around that<br />
2 time.<br />
3 Q. And then I have an e-mail that is -- this<br />
4 is page 259 <strong>of</strong> January 23 where you wrote to Amerigo<br />
5 and Manfredi: Just took a break. <strong>Albert</strong> did hire<br />
6 an attorney and it is actually helping explain the<br />
7 negatives from an independent source.<br />
8 As I understand, though, there was no<br />
9 attorney.<br />
10 A. No. There was someone playing an<br />
11 attorney, but no one really talking to <strong>Albert</strong> other<br />
12 than Mr. Lippman and myself.<br />
13 Q. I want to be clear I understand what<br />
14 you're saying.<br />
15 No licensed attorney was actually retained<br />
16 by <strong>Albert</strong> to represent him in this negotiation with<br />
17 Silversea regarding his termination. Correct?<br />
18 A. There was a licensed attorney paid by<br />
19 <strong>Albert</strong>, but not to represent him in the negotiation.<br />
20 Q. What was he paid to do?<br />
21 A. To pretend to be his lawyer.<br />
22 Q. And then you handled the negotiations?<br />
23 A. Manfredi didn't know that, but yes.<br />
24 Ultimately Mr. Lippman and myself handled<br />
25 all the negotiations. Yes.<br />
Page 121
1 Q. So describe for me what happened in London.<br />
2 Where did you meet?<br />
3 A. The bulk <strong>of</strong> the meetings to the best <strong>of</strong> my<br />
4 recollection occurred -- actually in London all <strong>of</strong><br />
5 the meetings occurred in hotel rooms -- either<br />
6 Manfredi's hotel room and <strong>Albert</strong>'s hotel room.<br />
7 Mr. Lippman and I -- I don't remember if<br />
8 they were in the same hotel or not -- I believe they<br />
9 were -- Mr. Lippman and I shuttled back and forth<br />
10 between the hotel rooms.<br />
11 Some <strong>of</strong> the negotiations and conversations<br />
12 with <strong>Albert</strong> actually took place outside. I have a<br />
13 fairly distinct recollection <strong>of</strong> walking around<br />
14 outside someplace in London -- me, <strong>Albert</strong> and Steve<br />
15 Lippman -- discussing the importance <strong>of</strong> keeping this<br />
16 smooth, as amicable as possible.<br />
17 There were times when Manfredi was led to<br />
18 believe that we -- that Lippman and I were down there<br />
19 browbeating <strong>Albert</strong> -- when in reality we were out<br />
20 drinking.<br />
21 Q. "We" being the three <strong>of</strong> you?<br />
22 A. There was an occasion where we were<br />
23 ordering -- yes -- and continued back and forth like<br />
24 that.<br />
25 As a matter <strong>of</strong> fact, my best recollection<br />
Page 122
1 is that until the very end, until the agreement was<br />
Page 123<br />
2 reached, that Manfredi and <strong>Albert</strong> were refusing to<br />
3 actually meet with each other. They wouldn't have a<br />
4 face-to-face meeting. We were the go-betweens --<br />
5 Mr. Lippman and I.<br />
6 Q. Actually, wasn't that better for you if<br />
7 you wished to manipulate the process?<br />
8 A. Yes. Yes. It was better all the way<br />
9 around.<br />
10 Q. So Manfredi did not know that you were<br />
11 being social with <strong>Albert</strong> during this shuttle<br />
12 diplomacy, nor did he know that you were actually<br />
13 effectively negotiating on <strong>Albert</strong>'s behalf. Correct?<br />
14 A. That's correct.<br />
15 Q. And Lippman was doing that as well.<br />
16 Correct?<br />
17 A. That's correct.<br />
18 Q. A clear legal conflict <strong>of</strong> interest under<br />
19 Florida law.<br />
20 Would you agree with that?<br />
21 A. Yes, sir.<br />
22 Q. Did not divulge it to Silversea.<br />
23 Correct?<br />
24 A. That's correct.<br />
25 Q. Silversea thought that <strong>Albert</strong> had his own
1 independent counsel when he really didn't. Correct?<br />
2 A. That's correct.<br />
3 Q. <strong>Albert</strong> didn't disclose to Manfredi, either,<br />
4 when they finally did get together that he was<br />
5 unrepresented. Correct?<br />
6 A. That's correct.<br />
7 Q. To the best <strong>of</strong> your knowledge, was there<br />
8 ever a point in time that anyone from Silversea<br />
9 learned <strong>of</strong> that?<br />
10 A. To my knowledge, no.<br />
11 Q. Then, to be sure, I want to recap your<br />
12 testimony from earlier today.<br />
13 You said you also billed the time that you<br />
14 spent with <strong>Albert</strong> to Silversea. Right?<br />
15 A. Yes. Both Mr. Lippman and I did.<br />
16 Q. And you inflated that time, as well?<br />
17 A. Yes.<br />
18 Q. To the extent that you were getting paid<br />
19 legal fees for doing this, was any part <strong>of</strong> the bill<br />
20 that you generated something that you believe was a<br />
21 continuous part <strong>of</strong> the embezzlement to Silversea that<br />
22 <strong>Albert</strong> was entitled to share in?<br />
23 A. I certainly treated it that way.<br />
24 Q. I have a document dated January 30, 2007.<br />
25 It looks like it's simply a Word created document<br />
Page 124
1 with <strong>Albert</strong>'s name on the top <strong>of</strong> the letterhead<br />
Page 125<br />
2 indicating it's January 30, 2007. It's Bates stamped<br />
3 <strong>Trustee</strong> 260 and it's <strong>Albert</strong>'s signed resignation from<br />
4 all positions as an <strong>of</strong>ficer or director from his<br />
5 employer, which includes Silversea Holding LTD and<br />
6 Silversea Cruise Lines LTD.<br />
7 It says that there was a separation<br />
8 agreement, general release and confidentiality<br />
9 agreement executed January 23, 2007.<br />
10 Does that help you pinpoint the London<br />
11 trip?<br />
12 A. It would have been right around that time,<br />
13 yes.<br />
14 Q. How many days did the negotiation on<br />
15 <strong>Albert</strong>'s contract take place over?<br />
16 A. I don't have a specific recollection. A<br />
17 few.<br />
18 Q. When you came back to the United States<br />
19 was there anybody that you told that you had done<br />
20 this with besides Steve having actual knowledge?<br />
21 A. Stuart.<br />
22 Q. What did you tell Stuart?<br />
23 A. I gave him a play by play pretty much <strong>of</strong><br />
24 everything that occurred and told him that we had<br />
25 extricated ourselves from the potential problems <strong>of</strong>
1 Silversea, that it was likely that we would continue<br />
2 to represent them for at left a short period <strong>of</strong> time,<br />
3 and that we were in a good position to move forward<br />
4 on Jewel River Cruises, that we were able to get<br />
5 <strong>Albert</strong> out without a non-complete that would<br />
6 interfere with <strong>Albert</strong>'s ability to run this company<br />
7 for us.<br />
8 Q. That suggests to me that Stuart knew about<br />
9 your fraudulent billing scheme.<br />
10 Would that be a fair statement?<br />
11 A. I don't believe that Stuart knew the actual<br />
12 mechanics <strong>of</strong> it, but he definitely knew that we were<br />
13 inflating the bills to Silversea, and the way that I<br />
14 know that is there was more than one occasion where<br />
15 Stuart was joking around with me when he was looking<br />
16 just at general receivables and the like and asking<br />
17 me how the hell could we possibly be doing this much<br />
18 legal work for these people, and I explained it to<br />
19 him that these were the bills that <strong>Albert</strong> was<br />
20 approving.<br />
21 Q. When you say you explained to him these<br />
22 were the bills that <strong>Albert</strong> was paying, did you<br />
23 explain to him that you were padding the bills?<br />
24 A. I told him that I was billing based upon<br />
25 what the market could bear at the time, and that I<br />
Page 126
1 tried to explain to him how we were additionally<br />
Page 127<br />
2 compensating <strong>Albert</strong> out <strong>of</strong> that money, because there<br />
3 were times when Stuart would look at records and the<br />
4 like, especially when I put <strong>Albert</strong> on payroll, Stu<br />
5 wanted to understand why, and I explained to him that<br />
6 we owed him the money, that we owed <strong>Albert</strong> the money,<br />
7 and I explained to him why we owed him the money.<br />
8 Q. Just to be sure, you know, you used the<br />
9 phrase "what the market would bear."<br />
10 I think that typically that phrase with<br />
11 respect to hourly rates and lawyers would reference<br />
12 whether a lawyer in downtown Fort Lauderdale for<br />
13 instance could get $600 an hour compared to $450 an<br />
14 hour.<br />
15 I don't think that's what you were alluding<br />
16 to.<br />
17 A. That's not what I was alluding to.<br />
18 Q. So let's just clean up the record a bit.<br />
19 When you say what the market would bear,<br />
20 what exactly do you know that you told Stu in terms<br />
21 <strong>of</strong> your words and what he understood by them and how<br />
22 you know that.<br />
23 A. I told Stuart that I was billing them based<br />
24 upon an arrangement that I reached with <strong>Albert</strong> with<br />
25 regard to making sure that we had plenty <strong>of</strong> money
1 in-house to operate, and that we were going to be<br />
Page 128<br />
2 repaying some <strong>of</strong> the money to <strong>Albert</strong> through various<br />
3 forms.<br />
4 Q. Now, you mentioned Jewel River Cruises a<br />
5 moment ago.<br />
6 When was the first time there was this<br />
7 genesis <strong>of</strong> a thought <strong>of</strong> creating Jewel River Cruises?<br />
8 A. Hang on. I want to make sure that my<br />
9 conversations with Stu are clear.<br />
10 I want you to know that in talking to<br />
11 Stuart that the way I just said that to you is not<br />
12 the way that I would say something to Stuart.<br />
13 Q. Yes. I understand.<br />
14 What I was asking for was the plain English<br />
15 translation.<br />
16 A. When it came to Silversea I came right out<br />
17 and told Stuart that we were billing them based upon<br />
18 what <strong>Albert</strong> was telling us we could bill.<br />
19 I'm certain there were many expletives, but<br />
20 said in a fun-loving fashion, as I would when I was<br />
21 being, I guess, what people called colorful.<br />
22 Something like: We're making an F-ing<br />
23 fortune <strong>of</strong>f this. We've got to give <strong>Albert</strong> back some<br />
24 <strong>of</strong> this money, but we're still making a fortune <strong>of</strong>f<br />
25 it. We're making far more than the amount <strong>of</strong> time
1 we're spending.<br />
Page 129<br />
2 I remember him asking me about the wire to<br />
3 Tatiana, and I told him it's money we owe <strong>Albert</strong> from<br />
4 all that money we took from Silversea. We've got to<br />
5 give some <strong>of</strong> it back to him. He's entitled to it.<br />
6 He had no problem with it.<br />
7 Stuart asked me about the car. As a matter<br />
8 <strong>of</strong> fact, before I bought that car for Coniglio I went<br />
9 and told Stuart that I was doing it, and told him the<br />
10 circumstances, so he knew what was going on in that<br />
11 regard.<br />
12 Q. So the record is clear, that last statement<br />
13 that you made is more along the lines <strong>of</strong> what you<br />
14 actually told Stuart as opposed to the previous<br />
15 answer which was telling me in plain English what was<br />
16 going on. Right?<br />
17 A. Yes.<br />
18 Q. Now, let's go to Jewel River Cruises for a<br />
19 moment. Maybe for awhile.<br />
20 When was the first time that you and <strong>Albert</strong><br />
21 talked about the concept <strong>of</strong> Jewel River Cruises?<br />
22 A. It was some time to the best <strong>of</strong> my<br />
23 recollection during maybe 2006. <strong>Albert</strong> had had this<br />
24 idea and then it blossomed from there.<br />
25 Q. So while he was still at Silversea he came
1 up with the idea for Jewel River Cruises?<br />
Page 130<br />
2 A. I don't know when he came up with the idea.<br />
3 He gave -- told me about the idea at a point in time<br />
4 when he was thinking that he might be having to leave<br />
5 Silversea.<br />
6 Q. So, to be sure, during the time period that<br />
7 you were negotiating for <strong>Albert</strong> with Silversea there<br />
8 had already been some discussion about forming Jewel<br />
9 River Cruises. Right?<br />
10 A. Yes.<br />
11 Q. What was your understanding -- and I want<br />
12 to focus on this mid January timeframe -- January,<br />
13 2007 -- what was your understanding <strong>of</strong> what Jewel<br />
14 River Cruises was going to turn into, hopefully?<br />
15 A. A river cruise version <strong>of</strong> Silversea.<br />
16 Q. How was that going to come to life?<br />
17 A. Through <strong>Albert</strong>'s expertise in the cruise<br />
18 industry, the significant knowledge he gained running<br />
19 Silversea, the connections he had made, his use <strong>of</strong><br />
20 his international business and finance contacts and<br />
21 funds that we were going to invest -- "we" meaning me<br />
22 and Stuart -- from RRA to Jewel River Cruises.<br />
23 Q. What was your role going to be in Jewel<br />
24 River Cruises?<br />
25 A. I don't remember what my title was going to
1 be or what it was.<br />
Page 131<br />
2 Q. I was thinking more like role as opposed to<br />
3 title.<br />
4 A. Shareholder.<br />
5 Q. Controlling?<br />
6 A. I don't recall whether it was controlling<br />
7 or not. I'm certain there would have been a very<br />
8 strong level <strong>of</strong> control, but I don't remember how the<br />
9 shares were going to be split up. Could have been<br />
10 controlling. I just don't have a specific<br />
11 recollection.<br />
12 Q. Is it a fair statement that at the time<br />
13 that you were negotiating <strong>Albert</strong>'s departure from<br />
14 Silversea you did not disclose to Silversea nor did<br />
15 <strong>Albert</strong> that the two <strong>of</strong> you had already hatched a plan<br />
16 to potentially launch Jewel River Cruises?<br />
17 A. No. The only people that knew about Jewel<br />
18 River Cruises at that point in time were me, <strong>Albert</strong>,<br />
19 Stuart, Steve Lippman, Blandin Wright and likely<br />
20 Debra and Irene.<br />
21 Q. Blandin was also with you in London.<br />
22 Correct?<br />
23 A. You know, I suppose that's possible, but<br />
24 I've got to tell you I don't have a specific<br />
25 recollection <strong>of</strong> him -- oh. Wait. Yes. Yes. Yes.
1 He was definitely there and I'll tell you how I<br />
Page 132<br />
2 remember -- because when we were flying over there we<br />
3 flew in -- I believe we flew in first class and ---<br />
4 Q. Did you ever fly coach class?<br />
5 A. Not from 2006 on I didn't.<br />
6 Q. I didn't think so.<br />
7 A. So I had Lippman sitting here, I'm sitting<br />
8 here (indicating), and to my left in those seats that<br />
9 lay down -- those cubicle things -- I was over here.<br />
10 I don't remember where our wives were, but<br />
11 I remember Blandin was a couple <strong>of</strong> seats away from<br />
12 us. Steve was reading Sports Illustrated. I was<br />
13 reading a watch magazine and we looked over and<br />
14 Blandin was reading the income tax code.<br />
15 Q. Do you recall Blandin telling you in London<br />
16 that or discussing with you in London the fact that<br />
17 he thought it was unique or odd or wrong that you<br />
18 were negotiating for <strong>Albert</strong> while you were<br />
19 Silversea's counsel?<br />
20 Any conversation along those lines at all?<br />
21 A. Not to my recollection.<br />
22 Q. Regardless, in January Blandin already<br />
23 knew as well that Jewel River Cruises was about to<br />
24 potentially become a reality, if I understand your<br />
25 testimony then. Right?
1 A. Sure. I found out from reading Blandin's<br />
Page 133<br />
2 e-mails -- and this was while RRA was still in<br />
3 business -- I was scanning his e-mail and he had<br />
4 written e-mails to <strong>Albert</strong> advising <strong>Albert</strong> about<br />
5 confidential firm conversations I had with staff and<br />
6 the like about financing and moneys allegedly coming<br />
7 into the firm and basically telling <strong>Albert</strong> how to<br />
8 pounce on me and how to get certain moneys.<br />
9 Q. I remember.<br />
10 A. Yes. He was well aware.<br />
11 Q. And you were really angry with him about<br />
12 that, as I recall -- with Blandin.<br />
13 A. Yes.<br />
14 Q. Did Blandin participate in the negotiations<br />
15 to the best <strong>of</strong> your recollection concerning <strong>Albert</strong>'s<br />
16 departure?<br />
17 A. I don't recall one way or the other.<br />
18 Q. Do you recall Blandin ever advising<br />
19 Silversea that you and <strong>Albert</strong> were forming Jewel<br />
20 River Cruises?<br />
21 A. I don't recall one way or the other.<br />
22 Q. Is it a fair statement that you never told<br />
23 Silversea that you and <strong>Albert</strong> were forming Jewel<br />
24 River Cruises?<br />
25 A. That's a fair statement.
1 Q. You agree that you had disclosed to them<br />
Page 134<br />
2 that you and <strong>Albert</strong> were forming Jewel River Cruises<br />
3 they probably would have terminated you as counsel on<br />
4 the spot?<br />
5 A. Yes.<br />
6 Q. At the point in time that <strong>Albert</strong> left the<br />
7 company, Manfredi and Amerigo had totally had it with<br />
8 <strong>Albert</strong>. They wanted him gone in a big way.<br />
9 Would you agree with that?<br />
10 A. Yes, sir.<br />
11 Q. So had they known that you had had the<br />
12 relationship that you indeed did have with <strong>Albert</strong>,<br />
13 they would have taken a very dim view <strong>of</strong> you?<br />
14 A. That's correct.<br />
15 Q. I'm going to stay with Jewel River Cruises.<br />
16 Did you ever reach any preliminary<br />
17 agreement back in 2006 or very early 2007 as to how<br />
18 much money you were going to invest in Jewel River<br />
19 Cruises?<br />
20 A. I don't recall capping it. I may have, but<br />
21 I don't have a specific recollection one way or the<br />
22 other. It was millions <strong>of</strong> dollars.<br />
23 Q. Millions that you ultimately put in.<br />
24 Right?<br />
25 A. Yes.
1 Q. Did you assist in preparing any business<br />
Page 135<br />
2 plans for Jewel River Cruises?<br />
3 A. I may have reviewed them at one point in<br />
4 time, but I don't remember actually sitting down to<br />
5 prepare it, no. That would have been something David<br />
6 Boden and Blandin would have been involved in.<br />
7 Q. Blandin certainly was responsible for that<br />
8 at the beginning <strong>of</strong> the Jewel River Cruises days.<br />
9 Do you agree with that?<br />
10 A. Yes, sir.<br />
11 Q. And then David Boden later took a more<br />
12 active role in overseeing the Jewel River Cruises<br />
13 investment?<br />
14 A. Yes. I promised him a piece <strong>of</strong> the company<br />
15 and he became much more involved.<br />
16 Q. What was David responsible for doing?<br />
17 A. More <strong>of</strong> the day to day interaction with<br />
18 <strong>Albert</strong>, watching over the finances, corporate<br />
19 structure.<br />
20 Q. Did he oversee the transmittal <strong>of</strong> funds<br />
21 from RRA to Jewel River Cruises on any <strong>of</strong> ---<br />
22 A. He assisted, yes.<br />
23 Q. Do you agree that all money that went to<br />
24 either loans or your equity interest in Jewel River<br />
25 Cruises was RRA funds?
1 A. It was Ponzi funds that went into RRA that<br />
2 became RRA funds that were then paid out.<br />
3 Q. It was not money that you had earned in any<br />
4 legitimate basis that was kept in any accounts titled<br />
5 in your name. Correct?<br />
6 A. Correct.<br />
7 Q. At the time that Mr. Boden oversaw the<br />
8 transfer <strong>of</strong> money out <strong>of</strong> RRA accounts he knew that<br />
9 the money was coming from RRA accounts to Jewel<br />
10 River Cruises. Right?<br />
11 A. That's correct.<br />
12 Q. Whose name was the investment put in for<br />
13 Jewel River Cruises?<br />
14 A. I don't recall. It would have either been<br />
15 mine directly -- mine and Stu's -- or a company -- a<br />
16 separate company that we set up.<br />
17 I don't have a specific recollection one<br />
18 way or the other.<br />
19 Q. Certainly the investment -- loans, equity,<br />
20 however you want to phrase it -- because I think<br />
21 there are different variations <strong>of</strong> that -- none <strong>of</strong><br />
22 those obligations or rights were vested in the name<br />
23 <strong>of</strong> RRA. Correct?<br />
24 A. No. They were not. That's correct.<br />
25 Q. And Boden knew that at the time that he<br />
Page 136
1 helped effect that financial transaction. Correct?<br />
Page 137<br />
2 A. That's correct.<br />
3 Q. Did you ever discuss with him the fact that<br />
4 it was RRA money that was then being converted to<br />
5 your use in terms <strong>of</strong> either an equity interest or<br />
6 owner <strong>of</strong> a note?<br />
7 A. He never questioned it because that's the<br />
8 way we paid for everything.<br />
9 Q. When you say "that's the way we paid for<br />
10 everything," can you expound on that, please?<br />
11 A. Yeah. Boden I told you was not only<br />
12 general counsel to the firm, he was my consiglieri.<br />
13 He handled virtually from the time he joined us every<br />
14 -- the financial end <strong>of</strong> every business that I became<br />
15 involved in, whether it be with Shimone Levy, Casa<br />
16 Casuarina, V. Georgio, RRA Goal Line ---<br />
17 Q. That's the sports management entity?<br />
18 A. Yes.<br />
19 Q. Kip Hunger Marketing, Africat Yachts, Bova<br />
20 restaurant group, all <strong>of</strong> those.<br />
21 Boden was the main architect <strong>of</strong> the<br />
22 financial side and the corporate structure side <strong>of</strong><br />
23 every single one <strong>of</strong> those deals, and he knew that all<br />
24 <strong>of</strong> that money was coming one way or the other from<br />
25 RRA accounts.
1 And, similarly, he knew that each time that<br />
2 he caused a disbursement from an RRA account that<br />
3 title in the shares <strong>of</strong> either the respective LLC or<br />
4 corporation was being placed in the name <strong>of</strong> either<br />
5 you or a single member LLC that was formed for your<br />
6 benefit?<br />
7 Do you agree with that?<br />
8 A. Yes.<br />
9 Q. And in some instances he was getting an<br />
10 equity interest in some <strong>of</strong> those investments, as<br />
11 well.<br />
12 Correct?<br />
13 A. That's correct.<br />
14 Q. Like an interest in a bank that you were<br />
15 purchasing. Correct? I think it was Greater<br />
16 Florida?<br />
17 A. That's correct. I thought it was Broward<br />
18 Bank <strong>of</strong> Commerce.<br />
19 Q. Broward Bank <strong>of</strong> Commerce.<br />
20 Yes. Thank you -- and others as well.<br />
21 Right?<br />
22 A. You're welcome.<br />
23 Q. And other entities, as well?<br />
24 A. I had every intention <strong>of</strong> giving David Boden<br />
25 an interest in every one <strong>of</strong> the companies that he was<br />
Page 138
1 assisting me with.<br />
Page 139<br />
2 Q. Why?<br />
3 A. Because he was an excellent consiglieri and<br />
4 he was running a fantastic sub-Ponzi scheme that was<br />
5 assisting me in funding all this.<br />
6 Q. And money from the sub-Ponzi scheme -- did<br />
7 any <strong>of</strong> that make its way into RRA accounts?<br />
8 A. All <strong>of</strong> it.<br />
9 Q. All <strong>of</strong> it ---<br />
10 A. My cut -- all <strong>of</strong> it.<br />
11 Q. All <strong>of</strong> your cut.<br />
12 A. Actually, all <strong>of</strong> it, because even the cuts<br />
13 that I paid back to Pearson and Boden through those<br />
14 fake finders' fee thing they created, that still ran<br />
15 through RRA accounts and then went to them.<br />
16 (Short Break)<br />
17 Q. Just a moment ago we were talking about<br />
18 your deals with Boden. I want to make sure I<br />
19 understand the flow <strong>of</strong> money because I don't want<br />
20 there to be any lack <strong>of</strong> clarity as to how the money<br />
21 went.<br />
22 The first is that Ponzi money -- that is<br />
23 money from we'll just call them the deals, no matter<br />
24 how they were structured -- that money went into RRA<br />
25 accounts. Correct?
1 A. Yes, sir.<br />
Page 140<br />
2 Q. The accounts were hopelessly co-mingled in<br />
3 the sense that whenever you needed money from<br />
4 whatever account had it in there you took the money<br />
5 for whatever purpose. Correct?<br />
6 A. That's correct.<br />
7 Q. That money could have been used to pay<br />
8 your expenses, could have been used to pay some RRA<br />
9 expenses, could have been used to pay for toys.<br />
10 Right?<br />
11 A. Yes, sir. All those things and more.<br />
12 Q. And sometimes even for investments. Right?<br />
13 A. Correct.<br />
14 Q. I noted that yesterday you answered the<br />
15 question in the negative as to the fact that you did<br />
16 not view there to be an alterego between you and RRA.<br />
17 Correct?<br />
18 A. That's correct.<br />
19 Q. At the time that <strong>Albert</strong> was terminated from<br />
20 Silversea I have e-mails that show that you went to<br />
21 Silversea to open his safe.<br />
22 Do you recall that?<br />
23 A. I do.<br />
24 Q. Why did you do it as opposed to the company<br />
25 doing it?
1 A. I needed to get the items that were in<br />
Page 141<br />
2 there before the company did.<br />
3 Q. What items did you need to get to?<br />
4 A. There were computer disks in there that<br />
5 <strong>Albert</strong> needed. There was some personal documents and<br />
6 some personal photos in there that <strong>Albert</strong> needed.<br />
7 Q. What was the content on the computer disks?<br />
8 A. To the best <strong>of</strong> my recollection it was<br />
9 downloads <strong>of</strong> some <strong>of</strong> the embezzlement documents that<br />
10 <strong>Albert</strong> and I had that were on their server that we<br />
11 took <strong>of</strong>f their server.<br />
12 Q. How did you remove them from the server?<br />
13 A. I don't recall. We had -- I don't know the<br />
14 mechanics <strong>of</strong> it.<br />
15 I had either Bill Corte or Curtis -- I<br />
16 think it was Curtis -- go over there and effectuate<br />
17 that and give the disks to <strong>Albert</strong> who then locked<br />
18 them in a safe.<br />
19 Q. I found a check, which I don't have with<br />
20 me, just kind <strong>of</strong> came to my memory, payable to Rey<br />
21 Leon for services rendered, and I recall the legend<br />
22 being that it pertained to Silversea.<br />
23 Did Rey perform any ---<br />
24 A. Yes.<br />
25 Q. What services did Rey perform for Silversea
1 that you recall?<br />
Page 142<br />
2 A. I may have sent him over there either with<br />
3 Curtis or separately from Curtis to assist in getting<br />
4 the -- either -- it wasn't on the downloading data<br />
5 issue. It was on the making sure that by the time<br />
6 <strong>Albert</strong> left that any incriminating e-mails had been<br />
7 removed.<br />
8 Q. Did he know that that was the mission,<br />
9 meaning did Rey know that that was what his mission<br />
10 was and what he was looking for?<br />
11 A. He knew that we needed to eliminate disks<br />
12 -- excuse me -- eliminate information -- but I did<br />
13 not explain it to him in the fashion <strong>of</strong> a crime. I<br />
14 explained to him that <strong>Albert</strong> as CEO wanted the data<br />
15 removed.<br />
16 Q. So he had no knowledge <strong>of</strong> the contents <strong>of</strong><br />
17 that which he was removing?<br />
18 A. He didn't know that it was harmful to me<br />
19 or to <strong>Albert</strong>. He just knew that the CEO <strong>of</strong> this<br />
20 cruise line wanted it removed.<br />
21 That's to the best <strong>of</strong> my recollection.<br />
22 Q. In the course <strong>of</strong> my serving a subpoena<br />
23 upon Silversea Cruises for documents pertaining to<br />
24 <strong>Albert</strong> and RRA I had been told that they had<br />
25 determined that a fair amount <strong>of</strong> data had been
1 deleted from their computers but they weren't able to<br />
2 restore it.<br />
3 Is that the information that you think<br />
4 you're alluding to now?<br />
5 A. Yes. There were several occasions, one<br />
6 where Rey was over there I believe with Curtis or<br />
7 Bill, and another where either Curtis or Curtis and<br />
8 Bill were there, maybe a third time, when we were<br />
9 making sure that data was taken <strong>of</strong>f <strong>of</strong> the Silversea<br />
10 server such that anything incriminating would never<br />
11 be able to be found.<br />
12 Q. Now, going back to the reason for <strong>Albert</strong>'s<br />
13 termination from Silversea, you said it was expenses<br />
14 that were charged improperly to the company.<br />
15 To the best <strong>of</strong> your knowledge, did that<br />
16 include, for instance, maid service at his house?<br />
17 A. Yes.<br />
18 Q. Limos for Diane DelValle?<br />
19 A. Yes.<br />
20 Q. Renting very high end cars when he was out<br />
21 on business?<br />
22 A. Yes, sir.<br />
23 Q. Taking Tatiana Yoel with him and charging<br />
24 that to the company on business travel?<br />
25 A. Yes, sir.<br />
Page 143
1 Q. With respect to Jewel River Cruises, our<br />
Page 144<br />
2 records reflect that you put millions <strong>of</strong> dollars into<br />
3 the company.<br />
4 Is that your recollection?<br />
5 A. That's correct.<br />
6 Q. Our records also reflect, at least they<br />
7 seem to suggest, that the money went directly from<br />
8 RRA accounts to a number <strong>of</strong> different Jewel River<br />
9 Cruises accounts.<br />
10 Are you familiar with that?<br />
11 A. I am.<br />
12 Q. There was an account in Florida for the<br />
13 Florida operation and there was an account in<br />
14 Switzerland for the Swiss operation.<br />
15 Correct?<br />
16 A. Yes, sir.<br />
17 Q. We seem to gather that there were a fair<br />
18 amount <strong>of</strong> employees that Jewel River Cruises had<br />
19 employed both here and in Europe.<br />
20 Do you agree with that?<br />
21 A. I don't recall <strong>of</strong>f the top <strong>of</strong> my head how<br />
22 many employees we had.<br />
23 Q. Ten? Approximately ten?<br />
24 A. Sounds about right.<br />
25 Q. Was the source <strong>of</strong> providing the capital
1 needed for all <strong>of</strong> this general overhead including the<br />
2 salaries solely money that to the best <strong>of</strong> your<br />
3 knowledge was coming from RRA?<br />
4 A. Yes.<br />
5 Q. RRA received no benefit for any <strong>of</strong> this<br />
6 money that was going out the door.<br />
7 Do you agree with that?<br />
8 A. Yes.<br />
9 Q. Do you know whether or not <strong>Albert</strong> Peter was<br />
10 supposed to be paid money from Jewel River Cruises?<br />
11 A. Whether <strong>Albert</strong> Peter was supposed to be<br />
12 paid?<br />
13 Q. Yes. Was he receiving a salary from Jewel<br />
14 River Cruises?<br />
15 A. My understanding was he was supposed to be<br />
16 receiving only a minimal amount from Jewel River<br />
17 Cruises because it was a start-up entity. He was<br />
18 supposed to be receiving something.<br />
19 Q. You were supplementing his income with the<br />
20 biweekly checks. Correct?<br />
21 A. That's correct.<br />
22 Q. That was separate and apart from the<br />
23 nominal funds that he was getting from Jewel River<br />
24 Cruises. Correct?<br />
25 A. Assuming they were, in fact, nominal.<br />
Page 145
1 Q. Did you to the best <strong>of</strong> your knowledge ever<br />
2 learn whether or not Jewel River Cruises actually<br />
3 acquired any ships?<br />
4 A. I was told that we did, but it later became<br />
5 my understanding that we may never have actually<br />
6 acquired anything.<br />
7 Q. Where did you learn that from?<br />
8 A. David Boden.<br />
9 Q. To the best <strong>of</strong> your knowledge, was all the<br />
10 money that you sent from RRA to Jewel River Cruises<br />
11 accounted for?<br />
12 A. You mean accounted for on my side or their<br />
13 side?<br />
14 Q. Their side to you.<br />
15 A. No. They did not account for it.<br />
16 As a matter <strong>of</strong> fact, there was a<br />
17 significant period <strong>of</strong> time where we were attempting<br />
18 to get reconciliations and find out where the heck<br />
19 all that money had gone and we were being thwarted by<br />
20 Mr. Peter.<br />
21 Q. When you say you were "thwarted" by him,<br />
22 what is it that you mean?<br />
23 A. He was giving us stories about where the<br />
24 money was and why we couldn't get access to the<br />
25 on line banking.<br />
Page 146
1 Q. How long <strong>of</strong> a period <strong>of</strong> time did this go on<br />
2 for?<br />
3 A. To my recollection, months.<br />
4 Q. Did you ever come to a conclusion as to<br />
5 what happened with the money --<br />
6 A. Yes.<br />
7 Q. -- the missing money.<br />
8 What conclusion did you reach?<br />
9 A. I agreed with what Mr. Boden told me, that<br />
10 we believed that <strong>Albert</strong> had stolen the money along<br />
11 with some other co-conspirators that he said.<br />
12 Q. How much money do you believe that they<br />
13 stole?<br />
14 A. Most <strong>of</strong> what we had invested.<br />
15 Q. And upon what facts did you base that<br />
16 conclusion?<br />
17 A. That they couldn't produce any documents<br />
18 to us showing us where any <strong>of</strong> the money went<br />
19 legitimately other than the payroll that they were<br />
20 paying. They could not produce any documents to us<br />
21 showing anything that we actually owned.<br />
22 Q. Such as a ship. Correct?<br />
23 A. A ship, a document showing a ship.<br />
24 Something.<br />
25 Q. Did you confront <strong>Albert</strong> about this?<br />
Page 147
1 A. They were not able to show us anything.<br />
Page 148<br />
2 Q. Did you confront <strong>Albert</strong> about this?<br />
3 A. Yes.<br />
4 Q. What did you say to him?<br />
5 A. I tried to handle it delicately.<br />
6 Q. Why delicately?<br />
7 You're not necessarily someone that always<br />
8 handled things so delicately. You were pretty direct<br />
9 usually.<br />
10 A. I was direct, but I wasn't going to<br />
11 accuse him <strong>of</strong> stealing at that point in time because<br />
12 -- listen, <strong>Albert</strong> and me and Boden and the people<br />
13 that were involved -- we again all fell within the<br />
14 doctrine <strong>of</strong> mutually assured destruction, because I<br />
15 couldn't do anything to <strong>Albert</strong> because I had already<br />
16 engaged in a major embezzlement scheme with him from<br />
17 Silversea.<br />
18 So it's not like I could have reported him<br />
19 to the authorities, so there was no reason to go any<br />
20 further than I had to.<br />
21 Q. So when you say that you addressed it with<br />
22 him delicately, what did you say?<br />
23 A. I sent him e-mails and talked to him in<br />
24 person about the fact that he was making me look like<br />
25 an idiot with the people that I was getting the money
1 from. I think I referenced the hedge funds in a<br />
Page 149<br />
2 bunch <strong>of</strong> the e-mails, that I couldn't account for<br />
3 moneys with my bankers.<br />
4 I tried to apply pressure to him in that<br />
5 fashion, and, Mr. Lichtman, I remembered something<br />
6 about the erasure <strong>of</strong> the e-mails that you may need to<br />
7 know.<br />
8 Q. Yeah.<br />
9 A. There were at different points in time<br />
10 four people that went over either all together at<br />
11 certain points in time or in groups or separately<br />
12 that assisted in the erasure <strong>of</strong> the data from the<br />
13 Silversea's computer.<br />
14 It was Bill Corte, Curtis Renie, Rey Leon,<br />
15 and another one <strong>of</strong> my attorneys who had significant<br />
16 computer experience, Michael Pancier.<br />
17 And the reason I remember that Michael went<br />
18 over is because there was a point in time when I<br />
19 needed something specifically erased that <strong>Albert</strong> had<br />
20 called me about with regard to e-mails back and forth<br />
21 between him and Diane DelValle that he wanted <strong>of</strong>f the<br />
22 computer, and I had no one else to send there, and I<br />
23 remember asking Michael if he could go over and help<br />
24 them, but I also want to make clear that even though<br />
25 Curtis Renie and Bill Corte were involved in other
1 parts <strong>of</strong> this crime, that neither Mr. Corte,<br />
Page 150<br />
2 Mr. Renie, Rey Leon or Michael Pancier were ever told<br />
3 <strong>of</strong> the illegal portion <strong>of</strong> that.<br />
4 They all four believed, to the best <strong>of</strong> my<br />
5 knowledge, that they were going over there and acting<br />
6 on the authority <strong>of</strong> the CEO <strong>of</strong> Silversea to do<br />
7 something that Silversea legitimately wanted to do.<br />
8 Q. So documents that were destroyed <strong>of</strong>f <strong>of</strong> the<br />
9 Silversea server -- would there have been<br />
10 corresponding copies <strong>of</strong> those documents on RRA<br />
11 servers?<br />
12 A. No. I don't believe we ever downloaded<br />
13 them onto our servers.<br />
14 Q. So the sole set would be that which was in<br />
15 the possession <strong>of</strong> <strong>Albert</strong> Peter?<br />
16 A. Yes.<br />
17 Q. What did you do with the disks that you<br />
18 took from the safe?<br />
19 A. We returned them to <strong>Albert</strong>.<br />
20 Q. Do you know what he did with them?<br />
21 A. I have no idea.<br />
22 Q. You said a few minutes ago going back to<br />
23 the issue <strong>of</strong> once you discovered that <strong>Albert</strong> was<br />
24 stealing from you on the Jewel River Cruises<br />
25 transaction that you were sending him e-mails and
1 talking to him about the embarrassing issues with the<br />
2 money you were trying to get from the hedge funds.<br />
3 Is it correct that you never received any<br />
4 money from the hedge funds with respect to investing<br />
5 in Jewel River Cruises?<br />
6 A. That's correct.<br />
7 Q. So the story that you told him was untrue,<br />
8 but it was intended to put pressure on him?<br />
9 A. Correct.<br />
10 Q. Same thing with respect to the banks and<br />
11 your accountant?<br />
12 A. That's correct.<br />
13 Q. Did you ever have a direct conversation<br />
14 with him where you said, "I know you ripped me <strong>of</strong>f,"<br />
15 or words to that effect?<br />
16 A. There was a conversation at my home at<br />
17 2308 Castilla where there was a gentleman named<br />
18 Eberhardt in town -- I believe it was Eberhardt --<br />
19 <strong>Albert</strong>, myself and Mr. Boden.<br />
20 We were sitting out in my backyard <strong>of</strong>f to<br />
21 the right under this little covered area smoking<br />
22 cigars and having cocktails and I colorfully<br />
23 explained to <strong>Albert</strong> and Eberhardt that I had a pretty<br />
24 good idea that I had been scammed and that if things<br />
25 were not as they were between <strong>Albert</strong> and I, that they<br />
Page 151
1 would be dealing with people <strong>of</strong> Mr. Coniglio's ilk to<br />
2 resolve the issue, but that I was giving them a pass.<br />
3 Q. Why did you give him the pass?<br />
4 A. Doctrine <strong>of</strong> mutually assured destruction.<br />
5 Nothing to gain by it.<br />
6 Q. How much do you understand they had stolen<br />
7 from you in connection with the Jewel River Cruises<br />
8 -- we'll call it deals, transactions, attempts to<br />
9 start a business?<br />
10 A. Between five and seven million dollars.<br />
11 They were stealing stolen money.<br />
12 Q. That's certainly one reason you couldn't go<br />
13 to the authorities.<br />
14 A. Yes. I had to go to a different kind <strong>of</strong><br />
15 authority if I was going to do anything, and that was<br />
16 not my way <strong>of</strong> doing business.<br />
17 Q. I have an e-mail from Blandin to you<br />
18 that -- this is July 15, 2008 -- it's <strong>Trustee</strong><br />
19 document 296 -- that discusses Blandin telling you<br />
20 that he has a P&L that says from inception through<br />
21 June 30, 2008 there was a net loss <strong>of</strong> a million<br />
22 seven.<br />
23 How did you get to the five million dollar<br />
24 number?<br />
25 A. I added up all the money I sent to Jewel<br />
Page 152
1 River.<br />
Page 153<br />
2 Q. Did they have any legitimate operations<br />
3 that they were trying to conduct?<br />
4 A. As I sit here today, I believe that in the<br />
5 beginning they were trying to get this to go, but<br />
6 that soon thereafter they decided just to steal<br />
7 whatever they could get out <strong>of</strong> me.<br />
8 Q. And when you say "they," who is "they"?<br />
9 A. <strong>Albert</strong>, Eberhardt and his co-conspirators,<br />
10 whoever else was involved.<br />
11 Q. The guys in Switzerland?<br />
12 A. Yes.<br />
13 Q. Is there a Mr. Baur, B-A-U-R?<br />
14 A. Yes, but I didn't believe I ever met him.<br />
15 Q. Mr. Henter, H-E-N-T-E-R?<br />
16 A. Again, yes. I recognize the name, but I<br />
17 don't believe I ever met him.<br />
18 Q. Did you ever see actual evidence ever <strong>of</strong><br />
19 there being confirmation <strong>of</strong> two new built ships for<br />
20 the benefit <strong>of</strong> Jewel River Cruises?<br />
21 A. To the best <strong>of</strong> my recollection, David Boden<br />
22 told me that he had seen documents but basically<br />
23 described them to me as cockamamy and not really<br />
24 pro<strong>of</strong> <strong>of</strong> anything.<br />
25 Q. Did you ever see evidence, the pro<strong>of</strong>, <strong>of</strong>
1 <strong>Albert</strong> Peter making an investment <strong>of</strong> his own cash<br />
Page 154<br />
2 into Jewel River Cruises?<br />
3 A. I have no specific recollection <strong>of</strong> ever<br />
4 seeing that one way or the other. I remember him<br />
5 telling me he did, but I don't remember seeing pro<strong>of</strong>.<br />
6 Q. Did you ever see pro<strong>of</strong> <strong>of</strong> <strong>Albert</strong> Peter<br />
7 executing guarantees that were called upon in<br />
8 connection with funding or financing for Jewel River<br />
9 Cruises?<br />
10 A. I don't have a specific recollection <strong>of</strong><br />
11 that one way or the other.<br />
12 Q. Meaning you don't recall the transaction<br />
13 or you don't recall seeing the documents?<br />
14 A. I recall him telling me he was guarantying<br />
15 things, but I don't recall seeing the documents<br />
16 evidencing the real guarantees.<br />
17 Q. We're almost done.<br />
18 Sheyene Rogers, S-H-E-Y-E-N-E Rogers.<br />
19 Do you know who she is?<br />
20 A. I do.<br />
21 Q. Who is she?<br />
22 A. A woman who worked for our firm in various<br />
23 capacities over the years.<br />
24 Q. Did she have any involvement in Jewel River<br />
25 Cruises?
1 A. I don't have a recollection one way or the<br />
2 other. She may have assisted <strong>Albert</strong> from time to<br />
3 time, maybe serving as a secretary or a receptionist<br />
4 or assistant, but I don't have a specific<br />
5 recollection <strong>of</strong> that, Mr. Lichtman.<br />
6 Q. There was a point in time where Jewel River<br />
7 Cruises occupied space within the RRA premises.<br />
8 Do you recall that?<br />
9 A. I do.<br />
10 Q. Was that at the beginning <strong>of</strong> when Jewel<br />
11 River Cruises was being formed?<br />
12 A. I think it was pretty much early on. I<br />
13 don't remember specifically a timeframe, whether it<br />
14 was the beginning or the middle, but it was fairly<br />
15 early on when <strong>Albert</strong> was telling me he needed an<br />
16 <strong>of</strong>fice, and we were taking space on the 22nd floor<br />
17 and we gave him a bunch <strong>of</strong> it.<br />
18 Q. There came a point in time where Jewel<br />
19 River Cruises closed completely, shut down.<br />
20 Do you recall that?<br />
21 A. I do.<br />
22 Q. Do you know what happened to all <strong>of</strong> its<br />
23 books and records?<br />
24 A. They disappeared.<br />
25 Q. They disappeared meaning what? Who took<br />
Page 155
1 them? Who caused them to disappear?<br />
Page 156<br />
2 A. To the best <strong>of</strong> my knowledge, <strong>Albert</strong> Peter.<br />
3 Q. Did you see him remove them from the<br />
4 <strong>of</strong>fice?<br />
5 A. I did not.<br />
6 Q. To the best <strong>of</strong> your knowledge, who was the<br />
7 last custodian <strong>of</strong> the Jewel River Cruises documents?<br />
8 A. <strong>Albert</strong> Peter.<br />
9 Q. The last area I'm going to get into today<br />
10 is if you would go back to the complaint and look<br />
11 at ---<br />
12 A. One moment, please.<br />
13 MS. GUARIGLIA: What's the Bates number?<br />
14 MR. LICHTMAN: 048.<br />
15 A. Spreadsheet?<br />
16 Q. Spreadsheet.<br />
17 Got it?<br />
18 A. Got it.<br />
19 Q. For the record, this is a spreadsheet our<br />
20 forensic accountants have put together reconstructing<br />
21 the records <strong>of</strong> RRA.<br />
22 These deal with transactions that you<br />
23 engaged in with <strong>Albert</strong> Peter starting in or about<br />
24 March 2, 2007 through 2008 -- different parts <strong>of</strong> time<br />
25 in 2008.
1 There's 12 <strong>of</strong> these transactions even<br />
Page 157<br />
2 though it's labeled up to loan 11, and that's because<br />
3 there was loan 1A and 1B.<br />
4 Do you recall engaging in a series <strong>of</strong><br />
5 transactions with <strong>Albert</strong> Peter that related to the<br />
6 Ponzi?<br />
7 A. Yes.<br />
8 Q. Describe to me what your recollection was<br />
9 as to what kind <strong>of</strong> deals you did with <strong>Albert</strong>.<br />
10 A. They were just like the same kind <strong>of</strong> deals<br />
11 I was doing with everybody else, just in a minimal<br />
12 paper level. Same type <strong>of</strong> thing I was doing with<br />
13 Morse, Lipshitz ---<br />
14 Q. Bridge loans?<br />
15 A. Yep.<br />
16 Q. You'll see in the right margin where it<br />
17 says: EST annualized return --<br />
18 A. Hold on. Yes.<br />
19 Q. -- <strong>Albert</strong> Peter received interest rates<br />
20 on an annualized basis -- I'll read them into the<br />
21 record: 136.55 percent, 38.32 percent,<br />
22 44.62 percent, 73.04 percent, 529.09 percent,<br />
23 243.35 percent, 1,951.45 percent, 108.51 percent,<br />
24 1,216.21 percent, 176.44 percent, and 329.01 percent.<br />
25 All these loans, loan transactions, came
1 about in a point in time starting shortly after<br />
Page 158<br />
2 <strong>Albert</strong> was terminated from Silversea.<br />
3 Why did you engage in all <strong>of</strong> these high<br />
4 interest transactions with <strong>Albert</strong>?<br />
5 A. I needed the money for the Ponzi and he<br />
6 needed the money to survive.<br />
7 Q. To what extent were the transactions that<br />
8 you engaged in with <strong>Albert</strong> related to repayment <strong>of</strong><br />
9 the opportunity he helped create by the embezzlement<br />
10 from Silversea?<br />
11 A. Can you ask that question again,<br />
12 Mr. Lichtman?<br />
13 Q. To what extent is there a relationship<br />
14 between your entering into these high interest rate<br />
15 transactions with <strong>Albert</strong> Peter tied to the<br />
16 opportunity he provided in the material embezzlement<br />
17 engaged in with Silversea?<br />
18 A. It was, for lack <strong>of</strong> a better term, a quid<br />
19 pro quo.<br />
20 Q. Did you discuss with him the high interest<br />
21 rates?<br />
22 A. We discussed it from time to time, yes.<br />
23 Q. Did you explain to him how you could be in<br />
24 a position <strong>of</strong> paying some deals that were not only<br />
25 well over 100 percent, but some that were more than a
1 thousand percent?<br />
Page 159<br />
2 A. As I told you earlier, when <strong>Albert</strong> and I<br />
3 discussed this he knew there was a fraud going on.<br />
4 He didn't care.<br />
5 So the conversation only came up in how<br />
6 wonderful it was and for clarification purposes when<br />
7 I said I needed the money and he needed the money to<br />
8 survive, that should have been defined as survive in<br />
9 the lifestyle to which he had become accustomed.<br />
10 Q. You recognize that <strong>Albert</strong> was what we call<br />
11 a net winner?<br />
12 A. Yes.<br />
13 Q. Our records show that <strong>Albert</strong> put in<br />
14 $2,259,845 and he got back $3,643,194.<br />
15 Therefore, his net gain was almost 1.4<br />
16 million.<br />
17 Were you aware <strong>of</strong> that?<br />
18 A. I knew that he had made over a million<br />
19 dollars. I did not recall the exact amount.<br />
20 Q. Take a look at page 55, if you will.<br />
21 A. One second, please.<br />
22 Q. Sure.<br />
23 (Discussion <strong>of</strong>f the record.)<br />
24 Q. Do you recall the circumstances behind this<br />
25 transaction, the one that's referenced in that e-mail
1 for $500,000.<br />
Page 160<br />
2 A. I don't recall this specifically, no. Just<br />
3 another one <strong>of</strong> our deals.<br />
4 Q. This is reflected on the spreadsheet, which<br />
5 is Exhibit 48 as loan 1A.<br />
6 I believe that what you did was roll it<br />
7 into what became loan 1B.<br />
8 Do you have any recollection <strong>of</strong> that?<br />
9 A. I did that from time for time with him and<br />
10 with others, yes.<br />
11 Q. Why did you do that?<br />
12 A. Didn't have the money to pay him at the<br />
13 time.<br />
14 Q. Did he question the fact that you didn't<br />
15 have the money?<br />
16 A. No.<br />
17 Q. Jump to page 59.<br />
18 I guess this e-mail is out <strong>of</strong> place. This<br />
19 addresses Manfredi.<br />
20 Do you recall this e-mail?<br />
21 A. Yes.<br />
22 Q. Describe it for me.<br />
23 A. <strong>Albert</strong> and Rita were already in my space<br />
24 working on the Jewel deal and we did not want<br />
25 Silversea to know that they were working with me.
1 I believe that Manfredi was going to be<br />
Page 161<br />
2 coming by our <strong>of</strong>fices and I did not want <strong>Albert</strong> or<br />
3 Rita to be wandering around the 16th floor where my<br />
4 <strong>of</strong>fice was when Manfredi came in.<br />
5 Q. Now turn to page 60. Get back on track<br />
6 with the deals.<br />
7 A. Okay.<br />
8 Q. I assume you did a lot <strong>of</strong> deals so you<br />
9 don't necessarily recall this particular one --<br />
10 loan 2?<br />
11 A. Nope. I do not.<br />
12 Q. This was consistent with how you <strong>of</strong>ten<br />
13 wrote some <strong>of</strong> the bridge loan deals, though. Right?<br />
14 A. It is.<br />
15 Q. Did he conduct any due diligence on the<br />
16 transaction -- "he" being <strong>Albert</strong>?<br />
17 A. He did not.<br />
18 Q. Did you ultimately give him a promissory<br />
19 note?<br />
20 A. I may have. I don't have a specific<br />
21 recollection one way or the other.<br />
22 Q. Was there any substantive discussion about<br />
23 the transaction other than that which is stated in<br />
24 the e-mail providing what the repayment schedule was<br />
25 going to be in paragraphs 1 through 6 <strong>of</strong> the e-mail?
1 A. I don't have a recollection one way or the<br />
2 other what I discussed with him.<br />
3 MR. LICHTMAN: For the record, we're going<br />
4 to mark the complaint as Composite Exhibit 5 I think<br />
5 it is.<br />
6 (Whereupon, the document referred to was<br />
7 marked Plaintiff's Composite Exhibit No. 5 for<br />
8 Identification.)<br />
9 Q. Take a look at page 63.<br />
10 A. 63. Got it.<br />
11 Q. This is from <strong>Albert</strong> to you -- March 30,<br />
12 2007 -- so he's already gone by then.<br />
13 A. Yep.<br />
14 Q. What does the first sentence refer to:<br />
15 Bank confirmed the wire left 95,000. Check over<br />
16 U.S. 70,000 is in your hands.<br />
17 Do you know?<br />
18 A. No.<br />
19 Q. The third sentence down: Can we speak some<br />
20 more on Rita? I don't want to chase a dead horse.<br />
21 If you feel we should not touch her let me know so I<br />
22 can find a suitable replacement. On the other hand,<br />
23 I'm kind <strong>of</strong> worried to just leave her at Silversea.<br />
24 Do you know what that means?<br />
25 A. Yes.<br />
Page 162
1 Q. What?<br />
Page 163<br />
2 A. When <strong>Albert</strong> initially left Silversea we<br />
3 left Rita there working there with the idea that<br />
4 eventually she'd join us at Jewel River. We were<br />
5 talking about how long to leave her there because<br />
6 she was feeding us information as to what was going<br />
7 on there subsequent to <strong>Albert</strong>'s departure and<br />
8 eventually we brought her over.<br />
9 Q. What was the sensitivity?<br />
10 A. Well, we wanted to know -- it was important<br />
11 for us, at least for the first bunch <strong>of</strong> months<br />
12 following <strong>Albert</strong>'s departure, to have a mole inside<br />
13 Silversea feeding us information, but at the same<br />
14 time we did not want her to feel abandoned there and<br />
15 potentially have her turn on us.<br />
16 She did not like working there without<br />
17 <strong>Albert</strong> there, so that's the way it worked.<br />
18 Q. Did you ever get money or any other<br />
19 inducement <strong>of</strong> any nature over to Rita it keep her<br />
20 friendly?<br />
21 A. I may have sent her money from time to<br />
22 time. I don't have a specific recollection one way<br />
23 or the other.<br />
24 Q. Let me just go over my notes. I think<br />
25 I've got it all.
1 I have one thing. We found the Doug Bates<br />
2 memo.<br />
3 It's marked as <strong>Trustee</strong> 278, and it deals<br />
4 with the situation where Amerigo writes you an<br />
5 e-mail and he says: "How does this guy at the<br />
6 courthouse know that you are our counsel," and you<br />
7 wrote back, "Anyone can run the Silversea name at the<br />
8 courthouse on a link and pull up any action and see<br />
9 their most recent counsel."<br />
10 At the bottom you talk about there being<br />
11 another blackmailer around -- excuse me -- Amerigo<br />
12 says there's a concern there's another blackmailer<br />
13 around, and you wrote: "Doug Bates has an excellent<br />
14 reputation in the community. My guess is that he has<br />
15 some significant evidence. He has never had the<br />
16 reputation <strong>of</strong> being someone to engage in that kind <strong>of</strong><br />
17 nonsense. He is quite successful and has no need to<br />
18 engage in such behavior."<br />
19 And then you go on and talk about a plan.<br />
20 Do you recall the circumstance with Doug<br />
21 Bates and this e-mail?<br />
22 A. Do you have the Doug Bates letter attached<br />
23 to that e-mail?<br />
24 Q. No.<br />
25 A. Does it reference Doug Bates' letter?<br />
Page 164
1 Q. It references it, yes.<br />
Page 165<br />
2 A. What does it say?<br />
3 Q. Your response is that Doug has an excellent<br />
4 reputation in the community.<br />
5 A. I know, but does Amerigo say he's ---<br />
6 Q. Amerigo says: "Just received this letter<br />
7 from attorney Doug Bates. "Please review and<br />
8 advise" --<br />
9 A. Okay.<br />
10 Q. -- "as to whether his allegations have<br />
11 merit. I've litigated against this attorney many<br />
12 times and he does not make empty threats."<br />
13 This is actually your letter.<br />
14 "However, as a result <strong>of</strong> my pr<strong>of</strong>essional<br />
15 relationship with him I am certain that I can buy us<br />
16 any time we need to conduct our own investigation,"<br />
17 et cetera.<br />
18 Do you recall the circumstances <strong>of</strong> this<br />
19 e-mail exchange in May, 2007?<br />
20 A. I do.<br />
21 Q. First, to be sure, it is not the Doug Bates<br />
22 that has been employed as a partner at Berger<br />
23 Singerman. Correct?<br />
24 A. No.<br />
25 Q. It's Doug Bates that is, I believe, either
1 a Fort Lauderdale or a Plantation lawyer. Right?<br />
Page 166<br />
2 A. Plantation, I believe.<br />
3 Q. Describe for me that which you recall about<br />
4 this e-mail.<br />
5 A. It was more <strong>of</strong> the scam that <strong>Albert</strong> and I<br />
6 were pulling on Manfredi.<br />
7 Q. How's that?<br />
8 A. We were going to use it to embezzle ---<br />
9 Q. <strong>Albert</strong> was gone by then.<br />
10 A. I understand that, but I was going to use<br />
11 it to, one, have Manfredi stay out <strong>of</strong> the country --<br />
12 actually, I don't remember if it was stay out <strong>of</strong> the<br />
13 country, but I was either using it to keep Manfredi<br />
14 out <strong>of</strong> the country or utilizing it to keep Silversea<br />
15 keeping me retained.<br />
16 I have to see the letter to tell you which<br />
17 one it was.<br />
18 Q. Did you have a deal with Bates to have him<br />
19 draft a fake letter on your behalf?<br />
20 A. I did.<br />
21 Q. What was the deal?<br />
22 A. He would draft the letter and I would pay<br />
23 him.<br />
24 Q. What did you pay him?<br />
25 A. I don't recall how much I paid him. As a
1 matter <strong>of</strong> fact, I may have had <strong>Albert</strong> pay him.<br />
Page 167<br />
2 Q. Cash?<br />
3 A. No. If <strong>Albert</strong> paid him, it would have been<br />
4 cash. If I would have paid him, it would be a check.<br />
5 Q. Is there anything else you can recall about<br />
6 the circumstances <strong>of</strong> this e-mail exchange?<br />
7 A. Mr. Lichtman, if I saw the letter I could<br />
8 tell you for certain. I just can't recall whether or<br />
9 not it was having Doug Bates write about something<br />
10 that was for the purpose <strong>of</strong> controlling Manfredi or<br />
11 for the purpose <strong>of</strong> keeping Silversea locked into me<br />
12 and thereby again controlling Manfredi, but it was<br />
13 without a doubt an illegal letter written for an<br />
14 illegal purpose by Doug Bates as crafted -- meaning<br />
15 as put together, developed, by myself and <strong>Albert</strong>.<br />
16 Q. Did it lead to further legal work for RRA?<br />
17 A. Without seeing the letter, I can't tell<br />
18 you.<br />
19 Q. Unfortunately, the way that they print it<br />
20 out <strong>of</strong> the production <strong>of</strong> documents to us it didn't<br />
21 have the attachment.<br />
22 However, I did find what I believe to be<br />
23 one <strong>of</strong> the bond deals, although it's somewhat vague.<br />
24 I have an e-mail from June 4, 2008. It's<br />
25 Bates stamped <strong>Trustee</strong> 289 and at the bottom it's a
1 note from you to Manfredi and Amerigo saying that you<br />
2 were in court today and you were telling the Court<br />
3 what you were going to do with the funds and that you<br />
4 would advise them back and you were supposed to send<br />
5 the funds the same day as the hearing and that this<br />
6 was to come up with funds on an emergency basis to<br />
7 obtain an emergency hearing, and that you wanted to<br />
8 make sure you got this done because you "do not want<br />
9 to piss this judge <strong>of</strong>f," and then you had $750,000<br />
10 that were directed to be transferred to you by<br />
11 Silversea Cruises on that same date.<br />
12 Does that refresh your memory about one <strong>of</strong><br />
13 the bond deals?<br />
14 A. It was one <strong>of</strong> those deals. I don't recall<br />
15 the underlying circumstances, but that's what that<br />
16 is.<br />
17 MR. LICHTMAN: I don't have anything<br />
18 more.<br />
19 (Whereupon, the taking <strong>of</strong> the deposition<br />
20 was concluded at 3:05 p.m.)<br />
21<br />
SCOTT ROTHSTEIN<br />
22 Sworn to and subscribed<br />
before me this day<br />
23 <strong>of</strong> , 2012<br />
Notary Public, State<br />
24 <strong>of</strong> Florida at Large.<br />
25<br />
Page 168
1 CERTIFICATE<br />
2 STATE OF FLORIDA )<br />
COUNTY OF DADE )<br />
3<br />
I, SUZANNE DUNAY SIEGEL, a Notary Public in<br />
4 and for the State <strong>of</strong> Florida at Large, do hereby<br />
certify that, pursuant to a Notice <strong>of</strong> Taking<br />
5 <strong>Deposition</strong> in the above-entitled cause, SCOTT<br />
ROTHSTEIN was by me first duly cautioned and sworn to<br />
6 testify the whole truth, and upon being carefully<br />
examined testified as is hereinabove shown, and the<br />
7 testimony <strong>of</strong> said witness was reduced to typewriting<br />
under my personal supervision and that the said<br />
8 deposition constitutes a true record <strong>of</strong> the testimony<br />
given by the witness.<br />
9<br />
I further certify that the said deposition<br />
10 was taken at the time and place specified hereinabove<br />
and that I am neither <strong>of</strong> counsel nor solicitor to<br />
11 either <strong>of</strong> the parties in said suit nor interested in<br />
the event <strong>of</strong> the cause.<br />
12<br />
WITNESS my hand and <strong>of</strong>ficial seal in the<br />
13 City <strong>of</strong> Miami, County <strong>of</strong> Dade, State <strong>of</strong> Florida,<br />
this 11th day <strong>of</strong> June, 2012.<br />
14<br />
15 ____________________________<br />
SUZANNE DUNAY SIEGEL<br />
16<br />
17 NOTARY PUBLIC-STATE OF FLORIDA<br />
SUZANNE DUNAY SIEGEL<br />
18 COMMISSION# DD954552<br />
EXPIRES: JAN.22, 2014<br />
19 Bonded Thru Notary Public Underwriters.<br />
20<br />
21<br />
22<br />
23<br />
24<br />
25<br />
Page 169
1 FRIEDMAN, LOMBARDI & OLSON<br />
Suite 924, Biscayne Building<br />
2 19 West Flagler Street<br />
Miami, Florida<br />
3 Telephone (305)371-6677<br />
4 June 11, 2012<br />
5 RE: <strong>Rothstein</strong>, Rosenfeldt Adler, P.A. and.<br />
Stettin vs. <strong>Albert</strong> Peter, Iris Peter, Tatiana<br />
6 Yoel, Jewel River Cruise Lines, US, LLC, Jewel<br />
River Cruise Line, GMBH, and Jewel Cruises<br />
7 Holding, AG<br />
8 Marc Nurik, Esq.<br />
One E. Broward Blvd.<br />
9 Suite 700.<br />
Ft. Lauderdale, Florida 33301<br />
10<br />
Dear Mr. Nurik:<br />
11 With reference to the deposition <strong>of</strong> SCOTT<br />
ROTHSTEIN taken on June 5, 2012 in connection with<br />
12 the above-captioned case, please be advised that the<br />
transcript <strong>of</strong> the deposition has been completed and<br />
13 is awaiting signature.<br />
Please arrange for him/her to stop by our<br />
14 <strong>of</strong>fice for the purpose <strong>of</strong> reading and signing the<br />
deposition. Our <strong>of</strong>fice hours are 9:00 a.m. to 4:00<br />
15 p.m., Monday through Friday. Please telephone in<br />
advance.<br />
16 He/she may, however, read a copy <strong>of</strong> the<br />
transcript provided by any <strong>of</strong> the attorneys connected<br />
17 with the case, denoting any corrections by page and<br />
line number on a separate sheet <strong>of</strong> paper. This<br />
18 correction page must be signed by him/her and<br />
notarized and returned to us for filing with the<br />
19 original.<br />
If this has not been taken care <strong>of</strong>, however,<br />
20 within the next 30 days, or by the time <strong>of</strong> trial,<br />
whichever comes first, I shall then conclude that the<br />
21 reading and signing have been waived, and shall then<br />
proceed to deliver the original <strong>of</strong> the transcript to<br />
22 Charles Lichtman, Esq. without further notice.<br />
23 _______________________________<br />
SUZANNE DUNAY SIEGEL<br />
24 COURT REPORTER<br />
25<br />
Page 170