Deposition of Scott Rothstein re - Trustee Services
Deposition of Scott Rothstein re - Trustee Services Deposition of Scott Rothstein re - Trustee Services
1 ultimately sold to Mr. Lipsitz and Mr. Tonacchio were 2 the bridge loan deals and the promissory note/e-mail 3 settlement funding. 4 BY MR. GAY: 5 Q. But those two things in your mind were 6 separate; is that right? Maybe you don't -- 7 A. In my mind it was all just a way to get 8 money for the Ponzi scheme. It was just a different 9 fraudulent stitch. 10 Q. Were Mr. Tonacchio and/or Mr. Lipsitz 11 involved in both types of deals? 12 A. If you have paper I will refresh my 13 recollection. I need to look at their e-mails. 14 Q. If you'd look at -- 15 A. You can tell by the e-mail what kind of deal 16 was pitched. 17 Q. If you'd look at TL 00204. Let me know when 18 you that in front of you. 19 A. I have it. 20 Q. It's a March 21, 2007 e-mail from you to 21 Barryflash@aol.com and TLinvestors@aol.com. You see 22 that? 23 A. Yes, sir, I have it. 24 Q. It says first, "Thank so much for your 25 assistance in this matter." Do you recall if that's Page 52
1 in reference to the Picou loan? Page 53 2 A. That's what it appears to be. 3 Q. Okay. And then in what's effectively the 4 third paragraph, it says, "I am in the process of 5 working on a second loan." Do you see that? 6 A. Yes. 7 Q. It goes on to say, "Looks like the interest 8 rate will be 36 percent." 9 A. Yes. 10 Q. Do you think this e-mail is in reference to 11 the second "deal" that you entered into with 12 Mr. Tonacchio and/or Mr. Lipsitz? 13 MR. SALIM: Form. 14 THE WITNESS: Certainly could be. I'd need 15 to see the next series of e-mails or documents, then 16 I can tell you for certain. 17 BY MR. GAY: 18 Q. Well, part of the reason I ask is because 19 the promissory note that we looked at a little while 20 ago, which was referencing the Picou loan, was dated 21 March 19, 2007 and this e-mail is dated March 21, 22 2007. That's, I think, two days later. Does that 23 sound about right? 24 A. Yes, it is. It's referencing the Picou loan 25 and it looks like I'm pitching them a second deal.
- Page 1 and 2: 1 UNITED STATES DISTRICT COURT FOR
- Page 3 and 4: 1 ALSO PRESENT: 2 Domenick Tonacchi
- Page 5 and 6: 1 MR. LIPSITZ: Barry Lipsitz. Page
- Page 7 and 8: 1 A. That's correct. Page 7 2 Q. Ma
- Page 9 and 10: 1 first had a home just off of A1A
- Page 11 and 12: 1 A. It was an investment vehicle.
- Page 13 and 14: 1 where Mr. Lipsitz was there. Othe
- Page 15 and 16: 1 A. Yes, it's certainly possible.
- Page 17 and 18: 1 establishment? Page 17 2 A. A han
- Page 19 and 20: 1 Q. Who else would have accompanie
- Page 21 and 22: 1 private jet with Mr. Lipsitz? Pag
- Page 23 and 24: 1 Q. And this is an e-mail in June
- Page 25 and 26: 1 Q. Okay. If you see the text of t
- Page 27 and 28: 1 went to that graduation party? Pa
- Page 29 and 30: 1 to name the people? Page 29 2 MR.
- Page 31 and 32: 1 of them was there. Page 31 2 Q. W
- Page 33 and 34: 1 A. I do. Page 33 2 Q. Is that pho
- Page 35 and 36: 1 they are. Page 35 2 Q. You never
- Page 37 and 38: 1 watch for Mr. Tonacchio? Page 37
- Page 39 and 40: 1 Q. So if Mr. Lipsitz previously t
- Page 41 and 42: 1 THE WITNESS: If you could show me
- Page 43 and 44: 1 lie. Page 43 2 Q. It would have b
- Page 45 and 46: 1 to mean additional money over and
- Page 47 and 48: 1 risk. Page 47 2 MR. PHILLIPS: Obj
- Page 49 and 50: 1 very long period of time. Page 49
- Page 51: 1 they could make a lot of money wi
- Page 55 and 56: 1 e-mail that goes with this specif
- Page 57 and 58: 1 explain that to me? Page 57 2 A.
- 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
1 in <strong>re</strong>fe<strong>re</strong>nce to the Picou loan?<br />
Page 53<br />
2 A. That's what it appears to be.<br />
3 Q. Okay. And then in what's effectively the<br />
4 third paragraph, it says, "I am in the process <strong>of</strong><br />
5 working on a second loan." Do you see that?<br />
6 A. Yes.<br />
7 Q. It goes on to say, "Looks like the inte<strong>re</strong>st<br />
8 rate will be 36 percent."<br />
9 A. Yes.<br />
10 Q. Do you think this e-mail is in <strong>re</strong>fe<strong>re</strong>nce to<br />
11 the second "deal" that you ente<strong>re</strong>d into with<br />
12 Mr. Tonacchio and/or Mr. Lipsitz?<br />
13 MR. SALIM: Form.<br />
14 THE WITNESS: Certainly could be. I'd need<br />
15 to see the next series <strong>of</strong> e-mails or documents, then<br />
16 I can tell you for certain.<br />
17 BY MR. GAY:<br />
18 Q. Well, part <strong>of</strong> the <strong>re</strong>ason I ask is because<br />
19 the promissory note that we looked at a little while<br />
20 ago, which was <strong>re</strong>fe<strong>re</strong>ncing the Picou loan, was dated<br />
21 March 19, 2007 and this e-mail is dated March 21,<br />
22 2007. That's, I think, two days later. Does that<br />
23 sound about right?<br />
24 A. Yes, it is. It's <strong>re</strong>fe<strong>re</strong>ncing the Picou loan<br />
25 and it looks like I'm pitching them a second deal.
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