Deposition of Scott Rothstein re - Trustee Services
Deposition of Scott Rothstein re - Trustee Services Deposition of Scott Rothstein re - Trustee Services
1 A. To the best of my recollection, we were Page 78 2 short on cash. I couldn't make the check good, so I 3 was telling him to hold it. 4 Q. Was it your understanding that in 5 representing to Mr. Tonacchio that he needed to hold 6 the check, you were in effect telling him, I don't 7 have the funds to make good on this check? 8 A. No, that's -- no, no, that's not what I 9 said. That's what -- that's the reason I was doing 10 it. I don't know why I told him to hold it. 11 Q. Well, what would you possibly represent to 12 him as to why you would need to hold the check? 13 MR. SALIM: Form. 14 THE WITNESS: Could have been a myriad of 15 reasons. I don't want to guess. Unless I see an 16 e-mail related to this, sir, I can't tell you with 17 any certainty. 18 BY MR. GAY: 19 Q. If it was in relation to one of the 20 settlement agreement related deals, I understand from 21 prior testimony that what was represented was that you 22 had settled pre suit litigation on behalf of a client. 23 Defendant in that underlying litigation had funded a 24 settlement payment that your law firm was holding in 25 an account; is that correct?
1 A. Yes, sir. Page 79 2 Q. So according to what you represented 3 regarding the settlement agreement related deals, 4 there would be no reason for you to ever miss a 5 payment; is that correct? 6 MR. SALIM: Form. 7 THE WITNESS: If it was a settlement 8 funding deal, that's correct. 9 BY MR. GAY: 10 Q. But if it were a bridge loan related deal 11 that would be something different? 12 A. If we were waiting -- if it was a bridge 13 loan deal, yes, because that would have been waiting 14 for the putative client to repay the loan. A big 15 difference. 16 Q. If you'd look at Document 00219, please. 17 A. I have it. 18 Q. It's a July 12, 2007 e-mail from Scott 19 Rothstein to TL Investors. You see that? 20 A. I do. 21 Q. It says, "Any news on the wire... just got 22 an agitated call from my bank." You see that? 23 A. I do. 24 Q. Do you know what this e-mail was in 25 reference to?
- 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 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: 1 Q. So when you generally refer to
- 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
- 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.
1 A. Yes, sir.<br />
Page 79<br />
2 Q. So according to what you <strong>re</strong>p<strong>re</strong>sented<br />
3 <strong>re</strong>garding the settlement ag<strong>re</strong>ement <strong>re</strong>lated deals,<br />
4 the<strong>re</strong> would be no <strong>re</strong>ason for you to ever miss a<br />
5 payment; is that cor<strong>re</strong>ct?<br />
6 MR. SALIM: Form.<br />
7 THE WITNESS: If it was a settlement<br />
8 funding deal, that's cor<strong>re</strong>ct.<br />
9 BY MR. GAY:<br />
10 Q. But if it we<strong>re</strong> a bridge loan <strong>re</strong>lated deal<br />
11 that would be something diffe<strong>re</strong>nt?<br />
12 A. If we we<strong>re</strong> waiting -- if it was a bridge<br />
13 loan deal, yes, because that would have been waiting<br />
14 for the putative client to <strong>re</strong>pay the loan. A big<br />
15 diffe<strong>re</strong>nce.<br />
16 Q. If you'd look at Document 00219, please.<br />
17 A. I have it.<br />
18 Q. It's a July 12, 2007 e-mail from <strong>Scott</strong><br />
19 <strong>Rothstein</strong> to TL Investors. You see that?<br />
20 A. I do.<br />
21 Q. It says, "Any news on the wi<strong>re</strong>... just got<br />
22 an agitated call from my bank." You see that?<br />
23 A. I do.<br />
24 Q. Do you know what this e-mail was in<br />
25 <strong>re</strong>fe<strong>re</strong>nce to?
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