Deposition of Scott Rothstein re - Trustee Services
Deposition of Scott Rothstein re - Trustee Services Deposition of Scott Rothstein re - Trustee Services
1 don't recall whether I had specific conversations Page 110 2 with both him and Mr. Lipsitz together. We may have. 3 But I do not want to guess. I have no documentation 4 in that regard. 5 BY MR. SALIM: 6 Q. All right. As a former lawyer you are aware 7 that the avoidance of taxes is not necessarily illegal 8 versus tax evasion, correct? 9 A. That's correct. 10 Q. All right. So if theoretically you had this 11 conversation regarding mechanisms to avoid or minimize 12 taxes with Mr. Tonacchio, theoretically there's 13 nothing illegal about that, is there? 14 A. What I was talking about was the pulling of 15 cash from a business and hiding it, not declaring it. 16 I wasn't talking about legitimate taxes avoidance 17 mechanism. 18 Q. Is it your testimony that he told you he was 19 taking cash out of his business in order to avoid 20 taxes? 21 A. He told me that he had taken a substantial 22 amount of cash out of his business back when he had 23 the plumbing business and that him and certain other 24 partners had been, from time to time, able to get 25 their hands on substantial amounts of cash through
1 other business deals. More than that, I do not know. 2 Q. When did this conversation occur? 3 A. During the course of our friendship. I 4 don't recall the date or time. 5 Q. All right. And during the course of this 6 friendship you were also his attorney, correct? 7 A. I was. 8 Q. And I think you testified earlier that both 9 of these gentlemen came to trust you. You recall 10 that? 11 A. They did. 12 Q. Did you at any point in time tell them that 13 the investment transactions that they were engaged in, 14 whether they be characterized as bridge loans or 15 settlement based agreements, were illegal? 16 A. In those specific words, sir, no. 17 Q. Did you ever at any point in time tell them 18 that any aspect of what you were doing with their 19 money was illegal? 20 A. Using those specific words, no, sir. 21 Q. Okay. And when you told him that you were 22 involved in, quote, "corruption of law enforcement 23 with or on behalf of Ted Morse," was there anyone else 24 that was privy to this conversation? 25 A. Ted may have been there and Ron Picou may Page 111
- Page 59 and 60: 1 BY MR. GAY: Page 59 2 Q. And look
- Page 61 and 62: 1 excuse me. "Late payment penalty
- Page 63 and 64: 1 Q. But you would refer to each of
- Page 65 and 66: 1 determine whether or not a specif
- Page 67 and 68: 1 Morse and the Levys. Was there an
- Page 69 and 70: 1 A. You know, I don't recall speci
- Page 71 and 72: 1 Q. If you'd look at Document 0022
- Page 73 and 74: 1 A. Yes. Page 73 2 Q. That's an e-
- Page 75 and 76: 1 and it says an hour or less. Page
- Page 77 and 78: 1 Q. So when you generally refer to
- Page 79 and 80: 1 A. Yes, sir. Page 79 2 Q. So acco
- Page 81 and 82: 1 it says, "It was great getting to
- Page 83 and 84: 1 THE WITNESS: I don't. I don't hav
- Page 85 and 86: 1 e-mail, no, sir. Page 85 2 Q. Loo
- Page 87 and 88: 1 then when I finally did have the
- Page 89 and 90: 1 construction loan or something of
- Page 91 and 92: 1 A. I do. Page 91 2 Q. About the m
- Page 93 and 94: 1 couldn't decipher what was being
- Page 95 and 96: 1 A. I do. Page 95 2 Q. George who?
- Page 97 and 98: 1 BY MR. GAY: Page 97 2 Q. A few mo
- Page 99 and 100: 1 MR. PHILLIPS: Same. Page 99 2 THE
- Page 101 and 102: 1 were sitting around in a group, l
- Page 103 and 104: 1 time between myself and these peo
- Page 105 and 106: 1 Q. Did you, in fact, invest money
- Page 107 and 108: 1 A. Specifically, no. Sounds like
- Page 109: 1 illegal activity that I did with
- Page 113 and 114: 1 MR. SALIM: Because he's a liar, p
- Page 115 and 116: 1 that were associated with organiz
- Page 117 and 118: 1 crime or associates of organized
- Page 119 and 120: 1 A. Both ones that I was an invest
- Page 121 and 122: 1 are saying? Page 121 2 A. It's no
- Page 123 and 124: 1 was a distinction between a "sett
- Page 125 and 126: 1 BY MR. SALIM: Page 125 2 Q. If yo
- Page 127 and 128: 1 note was usurious? Page 127 2 A.
- Page 129 and 130: 1 deals or structured settlement de
- Page 131 and 132: 1 been owed money from RRA? Page 13
- Page 133 and 134: 1 A. Yes, sir. Page 133 2 Q. All ri
- Page 135 and 136: 1 MR. GAY: Objection to form. Page
- Page 137 and 138: 1 Q. And did you have an opinion as
- Page 139 and 140: 1 clients and what was going on on
- Page 141 and 142: 1 broken down? Page 141 2 A. That i
- Page 143 and 144: 1 on these "settlement deals"? Page
- Page 145 and 146: 1 yes, sir. Page 145 2 MR. SALIM: A
- Page 147 and 148: 1 "loan." Page 147 2 I think you ca
- Page 149 and 150: 1 asking? I mean, just generally as
- Page 151 and 152: 1 husband/wife privilege. You are n
- Page 153 and 154: 1 Q. It could be a mistake, could b
- Page 155 and 156: 1 uncle, or any other person that t
- Page 157 and 158: 1 Q. What do you mean by that, Scot
- Page 159 and 160: 1 A. Yes. Page 159 2 MR. GAY: Objec
1 other business deals. Mo<strong>re</strong> than that, I do not know.<br />
2 Q. When did this conversation occur?<br />
3 A. During the course <strong>of</strong> our friendship. I<br />
4 don't <strong>re</strong>call the date or time.<br />
5 Q. All right. And during the course <strong>of</strong> this<br />
6 friendship you we<strong>re</strong> also his attorney, cor<strong>re</strong>ct?<br />
7 A. I was.<br />
8 Q. And I think you testified earlier that both<br />
9 <strong>of</strong> these gentlemen came to trust you. You <strong>re</strong>call<br />
10 that?<br />
11 A. They did.<br />
12 Q. Did you at any point in time tell them that<br />
13 the investment transactions that they we<strong>re</strong> engaged in,<br />
14 whether they be characterized as bridge loans or<br />
15 settlement based ag<strong>re</strong>ements, we<strong>re</strong> illegal?<br />
16 A. In those specific words, sir, no.<br />
17 Q. Did you ever at any point in time tell them<br />
18 that any aspect <strong>of</strong> what you we<strong>re</strong> doing with their<br />
19 money was illegal?<br />
20 A. Using those specific words, no, sir.<br />
21 Q. Okay. And when you told him that you we<strong>re</strong><br />
22 involved in, quote, "corruption <strong>of</strong> law enforcement<br />
23 with or on behalf <strong>of</strong> Ted Morse," was the<strong>re</strong> anyone else<br />
24 that was privy to this conversation?<br />
25 A. Ted may have been the<strong>re</strong> and Ron Picou may<br />
Page 111
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