Deposition of Scott Rothstein re - Trustee Services

Deposition of Scott Rothstein re - Trustee Services Deposition of Scott Rothstein re - Trustee Services

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1 BY MR. GAY: Page 100 2 Q. Do you remember that you were previously 3 deposed in a number of adversary proceedings and 4 actually the main bankruptcy case, in the RRA 5 bankruptcy case -- 6 A. I do. 7 Q. -- back in December of last year? 8 A. I do. 9 Q. Specifically on December 16th, in a 10 deposition noticed in the Morse V. Rothstein action 11 you were asked the question about whether Ted Morse 12 ever talked to any of the Ponzi investors. Do you 13 remember that testimony? 14 A. I do. 15 Q. And in part you answered, in addition to a 16 number of other investors, there were two other 17 investors, and then you named Mr. Lipsitz and 18 Mr. Tonacchio. Do you remember that? 19 MR. SALIM: What page? 20 THE WITNESS: I do. 21 MR. GAY: 1162 through 1163. 22 MR. SALIM: Thank you. 23 BY MR. GAY: 24 Q. You went on to say, "When I say we never 25 talked about the Ponzi scheme, I mean that when we

1 were sitting around in a group, like a meeting with Page 101 2 me, Domenick and Barry, we didn't say, 'How is the 3 Ponzi going?'" And then you -- 4 A. That's correct. 5 Q. -- went on and said, "Okay. We certainly, 6 individually, frequently talked about the fraud and 7 things that were going on; but that out-loud group 8 thing, that did not occur." Do you remember that 9 testimony? 10 A. Yes. You are not -- I don't think you are 11 understanding my prior testimony correctly. 12 Q. You think I'm not understanding it 13 correctly? 14 A. I'm certain you are not understanding it 15 correctly. 16 Q. Tell me what the understanding should be. 17 A. The bulk of the conversation I'm talking 18 about has to do with my conversations with Ted Morse, 19 because I discussed, as you know from prior deposition 20 testimony, significant fraudulent activity with Ted 21 that we did not discuss in person. There were other 22 fraudulent things that Domenick and Barry and I 23 discussed separately, but you'll see nowhere in my 24 testimony am I saying that I told Domenick or Barry 25 that this was a Ponzi scheme.

1 we<strong>re</strong> sitting around in a group, like a meeting with<br />

Page 101<br />

2 me, Domenick and Barry, we didn't say, 'How is the<br />

3 Ponzi going?'" And then you --<br />

4 A. That's cor<strong>re</strong>ct.<br />

5 Q. -- went on and said, "Okay. We certainly,<br />

6 individually, f<strong>re</strong>quently talked about the fraud and<br />

7 things that we<strong>re</strong> going on; but that out-loud group<br />

8 thing, that did not occur." Do you <strong>re</strong>member that<br />

9 testimony?<br />

10 A. Yes. You a<strong>re</strong> not -- I don't think you a<strong>re</strong><br />

11 understanding my prior testimony cor<strong>re</strong>ctly.<br />

12 Q. You think I'm not understanding it<br />

13 cor<strong>re</strong>ctly?<br />

14 A. I'm certain you a<strong>re</strong> not understanding it<br />

15 cor<strong>re</strong>ctly.<br />

16 Q. Tell me what the understanding should be.<br />

17 A. The bulk <strong>of</strong> the conversation I'm talking<br />

18 about has to do with my conversations with Ted Morse,<br />

19 because I discussed, as you know from prior deposition<br />

20 testimony, significant fraudulent activity with Ted<br />

21 that we did not discuss in person. The<strong>re</strong> we<strong>re</strong> other<br />

22 fraudulent things that Domenick and Barry and I<br />

23 discussed separately, but you'll see nowhe<strong>re</strong> in my<br />

24 testimony am I saying that I told Domenick or Barry<br />

25 that this was a Ponzi scheme.

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