Deposition of Scott Rothstein re - Trustee Services
Deposition of Scott Rothstein re - Trustee Services Deposition of Scott Rothstein re - Trustee Services
1 because they couldn't have given a crap one way or the 2 other where the money was coming from so long as they 3 made money, they required documents. It varied. 4 Q. Were Mr. Tonacchio and Mr. Lipsitz in that 5 latter group that you are talking about, not giving a 6 crap where the money came from? 7 MR. SALIM: Form. 8 MR. PHILLIPS: Objection to form. 9 THE WITNESS: In the beginning I believe 10 that they trusted me so that they didn't require any 11 additional documentation. After we got into full 12 swing and they were making millions of dollars, I 13 always got the impression that as long as everything 14 was going fine, they were fine. 15 BY MR. GAY: 16 Q. Do you recall typically how the funding 17 would work on the deals that you entered into with 18 Mr. Tonacchio and Mr. Lipsitz, or did you have a sort 19 of routine? 20 A. They would wire the money -- I'd send them 21 an e-mail, they'd accept or reject the deals. They 22 would then wire, and I would overnight them a 23 promissory note with the postdated checks. 24 Q. Why postdated checks as opposed to wiring 25 money back to them? Page 68
1 A. You know, I don't recall specifically why we 2 did it that way. They may have wanted it that way and 3 I may have wanted it that way because it gave me an 4 extra day or two on the payment. 5 Q. If you'd look at Document 00216, please. 6 Let me know when you have that in front of you. 7 A. I have it. 8 Q. And that's an e-mail, subject line, new 9 deal. It looks like it's from S. Rothstein -- 10 A. Yes. 11 Q. -- @RRA-law.com, that's your e-mail address 12 at RRA? 13 A. Yes. 14 Q. It's to TLinvestors@aol.com and 15 Barryflash@aol.com. Do you see that? 16 A. I do. 17 Q. It says, "Good morning, kids. New one for 18 ya, extremely lucrative." Then it goes on to refer to 19 a total loan in the amount of 262K. Do you see that? 20 A. I do. 21 Q. And then if you go down a little bit 22 further, it says, "Interest is not six percent." Do 23 you see that? 24 A. Yeah. 25 Q. Can you explain to me what you meant by that Page 69
- 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 and 52: 1 they could make a lot of money wi
- Page 53 and 54: 1 in reference to the Picou loan? P
- 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: 1 Morse and the Levys. Was there an
- 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 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
1 A. You know, I don't <strong>re</strong>call specifically why we<br />
2 did it that way. They may have wanted it that way and<br />
3 I may have wanted it that way because it gave me an<br />
4 extra day or two on the payment.<br />
5 Q. If you'd look at Document 00216, please.<br />
6 Let me know when you have that in front <strong>of</strong> you.<br />
7 A. I have it.<br />
8 Q. And that's an e-mail, subject line, new<br />
9 deal. It looks like it's from S. <strong>Rothstein</strong> --<br />
10 A. Yes.<br />
11 Q. -- @RRA-law.com, that's your e-mail add<strong>re</strong>ss<br />
12 at RRA?<br />
13 A. Yes.<br />
14 Q. It's to TLinvestors@aol.com and<br />
15 Barryflash@aol.com. Do you see that?<br />
16 A. I do.<br />
17 Q. It says, "Good morning, kids. New one for<br />
18 ya, ext<strong>re</strong>mely lucrative." Then it goes on to <strong>re</strong>fer to<br />
19 a total loan in the amount <strong>of</strong> 262K. Do you see that?<br />
20 A. I do.<br />
21 Q. And then if you go down a little bit<br />
22 further, it says, "Inte<strong>re</strong>st is not six percent." Do<br />
23 you see that?<br />
24 A. Yeah.<br />
25 Q. Can you explain to me what you meant by that<br />
Page 69
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