Deposition of Scott Rothstein re - Trustee Services

1 amount of $5,250." Do you see that?
Page 56
2 A. Yes.
3 Q. Explain to me what that involved just
4 because I'm a little confused by the two payments, the
5 31.5 and the 5,250.
6 A. The 5,250 is the breakdown on a monthly
7 basis of the 31,500.
8 Q. Okay. This is fairly complicated terms as
9 compared to the Picou loan. In other words, there's
10 much more specifics as to amounts paid out and
11 breakdowns and things of that nature. Can you explain
12 to me how you arrived at the terms of this deal?
13 A. Well, actually it's not a lot more
14 complicated. I mean, now looking at it and studying
15 it, I can tell you what the deal was. They were each
16 putting up $175,000. They were getting back their
17 principal of $175,000, each of them, six months from
18 the date of the note. They were each getting a kicker
19 of $8,750 on the date of the note. And they were
20 getting checks of $5,250 over a six-month period, so
21 that would be the terms.
22 The way it was created was I figured out
23 that I needed a total of $350,000 into the Ponzi
24 scheme and then I structured a deal accordingly.
25 Q. You mentioned a kicker of 8,750. Could you