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 Silversea, that it was likely that we would continue 2 to represent them for at left a short period of time, 3 and that we were in a good position to move forward 4 on Jewel River Cruises, that we were able to get 5 Albert out without a non-complete that would 6 interfere with Albert's ability to run this company 7 for us. 8 Q. That suggests to me that Stuart knew about 9 your fraudulent billing scheme. 10 Would that be a fair statement? 11 A. I don't believe that Stuart knew the actual 12 mechanics of it, but he definitely knew that we were 13 inflating the bills to Silversea, and the way that I 14 know that is there was more than one occasion where 15 Stuart was joking around with me when he was looking 16 just at general receivables and the like and asking 17 me how the hell could we possibly be doing this much 18 legal work for these people, and I explained it to 19 him that these were the bills that Albert was 20 approving. 21 Q. When you say you explained to him these 22 were the bills that Albert was paying, did you 23 explain to him that you were padding the bills? 24 A. I told him that I was billing based upon 25 what the market could bear at the time, and that I Page 126

1 tried to explain to him how we were additionally Page 127 2 compensating Albert out of that money, because there 3 were times when Stuart would look at records and the 4 like, especially when I put Albert on payroll, Stu 5 wanted to understand why, and I explained to him that 6 we owed him the money, that we owed Albert the money, 7 and I explained to him why we owed him the money. 8 Q. Just to be sure, you know, you used the 9 phrase "what the market would bear." 10 I think that typically that phrase with 11 respect to hourly rates and lawyers would reference 12 whether a lawyer in downtown Fort Lauderdale for 13 instance could get $600 an hour compared to $450 an 14 hour. 15 I don't think that's what you were alluding 16 to. 17 A. That's not what I was alluding to. 18 Q. So let's just clean up the record a bit. 19 When you say what the market would bear, 20 what exactly do you know that you told Stu in terms 21 of your words and what he understood by them and how 22 you know that. 23 A. I told Stuart that I was billing them based 24 upon an arrangement that I reached with Albert with 25 regard to making sure that we had plenty of money

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

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