Deposition of Scott Rothstein re - Trustee Services
Deposition of Scott Rothstein re - Trustee Services Deposition of Scott Rothstein re - Trustee Services
1 A. I don't have a specific recollection, but Page 138 2 very few people were hitting the number. 3 Q. All right. What about in 2008, do you 4 recall what the revenues were for RRA from attorney's 5 fees? 6 A. Between eight and $9 million. 7 Q. And at that point in time the firm had how 8 many lawyers? 9 A. 2008, more than 50 I would guess, more than 10 40, 50, 60. 11 Q. So at 50 lawyers, that's less than $200,000 12 a lawyer. Was that the goal for each lawyer in the 13 firm? 14 A. No, sir. 15 Q. All right. So it would be fair to say that 16 basically this firm wasn't really performing any legal 17 services, it was used more or less as a charade to 18 give your Ponzi scheme the ability to operate and/or 19 have some legitimacy? 20 MR. GAY: Objection to form. 21 THE WITNESS: That's not true. 22 BY MR. SALIM: 23 Q. All right. Tell me where I'm wrong, Scott. 24 A. You have to differentiate between their 25 ability to collect money and bill money and get
1 clients and what was going on on the fraud side. Yes, 2 there were a number of people who worked at the firm 3 who were my co-conspirators and who were involved in 4 the Ponzi scheme, but the bulk of the firm was made up 5 of good, honest, hardworking lawyers and support staff 6 that had nothing to do with the Ponzi scheme. 7 And the fact that a lot of money wasn't 8 generated was more as a result of our lack of 9 direction and our business doing illegal business and 10 not paying attention to the law firm, than it 11 reflected on those good lawyers. 12 Q. I understand the fact that RRA was not 13 created for purposes of operating a Ponzi scheme, but 14 by 2007, obviously, at $8 million in revenue, could it 15 even pay the salaries that you were paying the lawyers 16 and staff based on its legitimate -- 17 A. No, sir. 18 Q. All right. And in 2008, could it pay its 19 lawyers and staff salaries based on legitimate law 20 firm revenues? 21 A. To my knowledge, no, sir. 22 Q. Did you utilize Ponzi funds to pay the 23 operating expenses of the firm? 24 A. I did. 25 Q. Did you use Ponzi funds to pay the salaries Page 139
- 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 and 110: 1 illegal activity that I did with
- Page 111 and 112: 1 other business deals. More than t
- 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: 1 Q. And did you have an opinion as
- 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
- Page 161 and 162: 1 Q. With respect to the Picou deal
- Page 163 and 164: 1 BY MR. PHILLIPS: Page 163 2 Q. Di
- Page 165 and 166: 1 him, use it as he needed to for d
- Page 167 and 168: 1 BY MR. PHILLIPS: Page 167 2 Q. Ri
- Page 169 and 170: 1 June 4th, Mr. Lichtman asked you
- Page 171 and 172: 1 going on. Then it morphed into fu
- Page 173 and 174: 1 Q. Now, in the plea agreement you
- Page 175 and 176: 1 documents establish. Page 175 2 Q
- Page 177 and 178: 1 That he had actually been living
- Page 179 and 180: 1 Q. In fact, didn't Mr. Caputi con
- Page 181 and 182: 1 A. I don't know whether I did or
- Page 183 and 184: 1 Page 38 of that transcript that y
- Page 185 and 186: 1 A. I mean, hang on, court records
- Page 187 and 188: 1 A. I'll be polite and not discuss
1 clients and what was going on on the fraud side. Yes,<br />
2 the<strong>re</strong> we<strong>re</strong> a number <strong>of</strong> people who worked at the firm<br />
3 who we<strong>re</strong> my co-conspirators and who we<strong>re</strong> involved in<br />
4 the Ponzi scheme, but the bulk <strong>of</strong> the firm was made up<br />
5 <strong>of</strong> good, honest, hardworking lawyers and support staff<br />
6 that had nothing to do with the Ponzi scheme.<br />
7 And the fact that a lot <strong>of</strong> money wasn't<br />
8 generated was mo<strong>re</strong> as a <strong>re</strong>sult <strong>of</strong> our lack <strong>of</strong><br />
9 di<strong>re</strong>ction and our business doing illegal business and<br />
10 not paying attention to the law firm, than it<br />
11 <strong>re</strong>flected on those good lawyers.<br />
12 Q. I understand the fact that RRA was not<br />
13 c<strong>re</strong>ated for purposes <strong>of</strong> operating a Ponzi scheme, but<br />
14 by 2007, obviously, at $8 million in <strong>re</strong>venue, could it<br />
15 even pay the salaries that you we<strong>re</strong> paying the lawyers<br />
16 and staff based on its legitimate --<br />
17 A. No, sir.<br />
18 Q. All right. And in 2008, could it pay its<br />
19 lawyers and staff salaries based on legitimate law<br />
20 firm <strong>re</strong>venues?<br />
21 A. To my knowledge, no, sir.<br />
22 Q. Did you utilize Ponzi funds to pay the<br />
23 operating expenses <strong>of</strong> the firm?<br />
24 A. I did.<br />
25 Q. Did you use Ponzi funds to pay the salaries<br />
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