EFTA01130733.pdf

IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT, IN AND FOR PALM BEACH COUNTY, FLORIDA CASE NO.: 502009CA040800XXXXMBAG JEFFREY EPSTEIN, Plaintiff, vs. SCOTT ROTHSTEIN, individually, BRADLEY J. EDWARDS, individually, and L.M., individually, Defendant, NOTICE OF FILING TRANSCRIPT IN SUPPLEMENTAL SUPPORT OF BRADLEY EDWARDS' MOTION FOR SUMMARY JUDGMENT Defendant/Counterplaintiff, BRADLEY J. EDWARDS, by and through his undersigned attorneys, hereby gives notice of the filing of the transcript of the deposition of Scott Rothstein taken on June 14, 2012. Specific portions of the deposition on which Mr. Edwards' relies in support of his motion for sununary judgment are highlighted. I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished by 1-10 U.S. Mail to all counsel on the attached lis day of June 2012. RO A ar No.: 169440 Denney Scarola Barnhart & Shipley, P.A. 9 Palm Beach Lakes Boulevard est Palm Beach. Florida 33409 Attorneys for Bradley J. Edwards EFTA01130733 Edwards adv. Epstein Case No.: 502009CA040800XXXXMBAG Notice ofFiling Transcript In Supplemental Support of Bradley Edwards' Motion for Summary Judgment Page 2 of 2 COUNSEL LIST Bradley J. Edwards, Esquire Farmer, Jaffe, Weissing, Edwards, Fistos 425 North Andrews Avenue, Suite 2 Fort Lauderdale, FL 33301 Jack A. Goldberger, Esquire Atterbury, Goldberger & Weiss, P.A. 250 Australian Avenue South, Suite 1400 West Palm Beach FL 33401 Marc S. Nurik, Esquire One E Broward Blvd., Suite 700 iierdale FL Toot Haddad Coleman, Esquire Law Offices of Tonja Haddad, P.A. 524 S Andrews Avenue, Suite 200N Fort Lauderdale. FL 01 Lilly Ann Sanchez, Esquire The L-S Law Firm 1441 Brickell Avenue, 15th Floor Miami, FL 33131 EFTA01130734  Page 1 IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA GENERAL JURISDICTION DIVISION JEFFREY EPSTEIN, Plaintiff, vs. No. 502009CA040800XXXXMBAG SCOTT ROTHSTEIN, individually, and BRADLEY J. EDWARDS, individually, Defendants. 500 East Broward Boulevard, Ft. Lauderdale, Florida Thursday, June 14, 2012 9:14 a.m. - 12:37 p.m. DEPOSITION Of SCOTT ROTHSTEIN (Via Video Conference) Taken on behalf of the Trustee pursuant to a notice of taking deposition - - - FRIEDMAN, LOMBARDI & OLSON 305-371-6677 5ed93085-0554-4471•bcdd-ca2d81e841d1 EFTA01130735  APPEARANCES: 1 Thereupon: 2 LAW OFFICES OF IOWA HADDAD, P.A. by 2 SCOTT ROTHSTEIN, 3 Tonja Haddad, Esq. 3 was called as a witness and, having been duly sworn, Attorney for the Plaintiff. , 4 was examined and testified as follows: 4 5 AT'fERBURY, GOLDBERGER & WEISS, P.A., by 5 THE WITNESS: I do. Jack Goldberger, Esq. 6 MS. HADDAD: Good morning, Scott. How are 6 Attorney for the Plaintiff. 7 you? SEARCY DENNEY SCAROLA ET AL, by 8 THE WITNESS: Good morning, Tonja. How are 8 Jack Scuola. Esq. you? Attorney for the Defendant, Brad Edwards 10 MS. HADDAD: Fine, thank you. It's nice to 9 10 MARC NUIUK, PA , by 11 see you. Marc Nurik, Esµ 12 THE WITNESS: Good to see you, too. 11 Attorney for Scott Rothstein 13 MR. SCAROLA: Mr. Rothstein, I don't know (Appearing via Video Conference.) 14 that you and I have met. I'm Jack Scarola, I'm 12 13 U.S. ATTORNEY'S OFFICE, by 15 representing Brad Edwards and I know you know Brad Laurence LaVecchio, Esq. 16 who's to my immediate left. 14 Attorney for the Department of Justice 27 THE WITNESS: Hey, Brad, how are you? 15 16 18 Jack, good to see you. 17 19 MR. SCAROLA: Thank you. 18 20 MR. GOLDBERGER: Also present is another 19 20 21 Jack, Jack Goldberga, and I also represent Jeffrey 21 22 Epstein. To my right is Darryn Indyke -- 22 23 THE WITNESS: Good morning, Jack. 23 24 24 MR. GOLDBERGER: How are you today? 25 25 And to my right is Darryn Indyke, who is Page 2 Page 4 I INDEX 1 Mr. Epstein's in-house counsel. 2 WITNESS DIRECT CROSS REDIRECT RECROSS 2 MR. INDYKE: Good morning. 3 3 THE WITNESS: Good morning, sir. SCOTT ROTHSTEIN 4 MR. NORA: Good morning, everyone. 4 5 (By Ms. Haddad) 5 MR. GOLDBERGER: Hi, Marc, how are you? 5 (By Mr. Goldberger) 92 6 MR. NURIK: Good. You'll be seeing my (By Mr. Scarola) 121 7 shoulder most of the day. 6 8 W. GOLDBERGER: Okay. 7 EXHIBITS 9 DIRECT EXAMINATION 8 10 BY MS. HADDAD: PLAINTIFFS FOR IDENTIFICATION 11 Q. Well, Scott, J know you've talked about this 9 12 probably more than you even care to, but I'd like to 10 I 64 2 69 13 start a little bit asking you about the scheme at your 11 3 72 14 firm and how and when it started and things of that 12 15 nature just very briefly because I know you've covered 13 16 19 it many times. 15 17 MR. SCAROLA: It has been covered and 16 18 protocol precludes asking questions that have already 17 19 been answered and covering areas that have already 18 19 20 been covered, so we do object. 70 21 MR. GOLDBERGER: Your objection is noted. 21 22 BY MS. HADDAD: 72 23 Q. When did this first start? 23 74 24 A. It started back in '05, '06. The question 25 25 is a little bit vague for me because it started in a Page 3 Page 5 "Mk 2 (Pages 2 to 5) FRIEDMAN, LOMBARDI & OLSON 305-371.6677 6•0930864564-44Mbedd-ca201s9410 EFTA01130736  1 different form than it ended because it started as 1 growth started," do you mean both the scheme — do you 2 bridge loans and things of that nature, and then ". 2 mean the scheme and the firm or either one or both? 3 morphed into the Ponzi scheme. But you are looking 3 A. Both. 4 back into the 2005 time frame for the very beginning. 5 4 Q. Do you recall approximately when you took 5 Q. The 2005 time frame, that's when the bridge the space in the 401 Building? 6 loans started? 6 A. 1 do not. 7 A. I can't be certain exactly what we were Q. At the time everything imploded, how many 7 8 doing. I need to see all the documents to tell you partners did you have at the firm, do you recall? 9 what we were doing at what specific point in time. A. Are you saying partners and shareholders? 10 Q. What made you decide to start doing this? 10 Because remember, we had both, two designations. 11 A. ! started doing it out of greed and the need 11 Q. 1 want to start with just attorneys that 12 to support the law firm, which was having significant 12 had — not in your firm name but named as "partner' on 13 financial trouble at the time. 13 the cards, for example. 14 Q. And in 2005 had you moved over to 401 yet or 14 A. I'd have to see a list of all the employees. 15 were you still in the building where Colonial Bank 15 We had a bunch. 16 was? 16 Q. Do you recall about how many attorneys you 17 A. I don't remember. 17 had working there? 18 Q. Do you recall approximately how many 18 A. Approximately 70. 19 attorneys you had working for you when it started? 19 Q. In the year before, do you recall how many 20 A. 1 do not. Between five and ten, Tonja. 20 you had? 21 Q. Was it before you started acquiring 21 A. I do not. 22 attorneys like you were acquiring cars and watches? 22 Q. So how many equity manners did you have or 23 MR. SCAROLA: Object to the form of the 23 sha Ss? I'm not sure of the word that we are 24 question, vague. 24 using. 25 THE WITNESS: Yes. 25 A. Actual shareholders, equity shareholders Page 6 Page 8 1 BY MS. HADDAD: 1 were two, me and Stu Rosenfelt 2 Q. Well, who were you partners with when it 2 Q. And everyone else was just a partner for 3 first started? 3 title purposes? 4 A. Stu Rosenfeldt. 4 A. There were shareholders for title purposes 5 Q. Okay. Anyone else? 5 and partners for title purposes. 6 A. Susan Dolin, I believe. It was definitely 6 Q. If someone was called a shareholder for 7 Stu Rosenfeldt, Michael Fancier, and Susan Dolin may 7 title purposes then, did they get to receive any of 8 have been partners of ours at that time, I'm not 8 the funds? Were they shareholders receiving money or 9 certain. 9 they were not considered shareholders in that sense? 10 Q. Because if memory serves me correctly, you 10 MR. SCAROLA: Objection to the form of the 11 went from being in the One Financial Plaza Building to 11 question. 12 the building across the street, it was Rothstein, 12 THE WITNESS: What kind of funds are you 13 Rosenfeldt, Dolin and Pancier; is that correct? 13 talking about? 14 A. Yes. 14 BY MS. HADDAD: 15 Q. And it was some time later that you moved 15 Q. In general from the firm. When you say 16 into the 401 Building, correct? 16 equity shareholders, I understand that's you and Stu. 17 A. You are skipping one step. I went from One 17 What I'm saying is, if you had someone else that was 18 Financial Plaza to Phillips, Eisinger, Koss, Kusnick, 18 named as a shareholder, why did you call them a 19 Rothstein and Rosenfeldt. Then Stu Rosenfeld% and 1 19 shareholder as opposed to a partner? 20 broke off and formed Rothstein Rosenfeldt. And then 20 A. It was a title of prestige and achievement,. 21 Rothstein, Rosenfeldt, Dolin, Fancier over at the 21 Q. So it was basically an ego thing, it had 22 Colonial Bank Building. And then we took the space in 22 nothing really to do with the finances or hierarchy of 23 the 401 Building and eventually moved over there and 23 the firm? 24 that's when the real growth started. 24 A. They got paid more generally, but it did not 25 Q. And when you say, "that's when the real 25 have anything to do with distributions. Page 7 Page 9 3 (Pages 6 to 9) FRIEDMAN, LOMBARDI & OLSON 305-371-6677 Sed93085.0554.447f.bcdd-ca2d8te947d1 EFTA01130737  1 Q. When you were hiring and bringing in all 1 Q. Would you need to look at someone's book of 2 these new attorneys, did everyone come in as a 2 business if they were coming in just solely to be a 3 partner? 3 rainmaker for the firm prior to hiring them? 4 A. No. 4 A. I discussed it with them. There were not 5 Q. How did you decide who came in as a partner many people that I recall that I actually looked at 6 and who came in as an associate? their numbers. Once David Boden was working for me I I 756 7 A. Depended upon their level of expertise, had him check people's numbers, but I rarely looked. I 8 practice, book of business. It was a decision Stuart 8 took most people's words for what they were 9 and 1 made together on a case-by-case basis. 9 generating. 10 Q. So you and Stu where the -- were in charge 10 Q. My recollection is, you were always looking 11 of hiring? 11 to bring in more people, to hire more people, some of 2 A. Stuart and I tried to consult on every 12 us were somehow able to resist you while others were 13 hiring decision, yes. 13 not. How would you decide who you were looking at to I. 4 Q. Did you guys also decide salaries? 14 bring into your firm? 15 A. I generally decided the salary and then let 15 A. We were trying to develop, on the legitimate 16 Stu know what I was going to do. And he would say if 16 side of the law firm, we were trying to develop real 17 he thought it was okay or if he thought it was too 17 talent, real ractice groups. I mean, Brad is a 18 much or too little, but I generally had free reign in 18 perfect exampleareat lawyer, got a great reputation, 19 that regard. 19 You know, it was our hope that, you know, he was going 20 Q. Did someone's book of business directly 20 tobe one of the people to actually in some ways 21 correlate to the salary that you would offer? 21 rescue the firm because he had a practice group that 22 A. That is a very broad question because it 22 could generate substantial income. You know, on the 23 depends upon what other needs we had for that 23 legitimate side that's what we were trying to do. we 24 individual. 24 were trying to find the best and the brightest. 25 Q. What do you mean by "what other needs"? 25 Q. Okay. With respect to bringing people that Page 10 Page 12 1 A. Well, I'll give you a good example. My 1 you thought could hring_a book of bulinesscou just 2 lawyer, Mr. Nurik, his salary was directly related to 2 said Brad, for example, that he had a legitimate 3 the fact that he was a great lawyer and had a solid 3 practice_maro witILagoraLhoolcalusifl did 4 book of business. 4 you know that? 5 Q. Yes. 5 A. Everyone in the tort world that I had spoke 6 A. David Boden, on the other hand, was, as I 6 to spoke extremelylighlv_offirad not only neonle I 7 previously testified, I don't know if you've had a 7 already had working forme but other People that knew 8 chance to read the testimony, but David Boden was not 8 rim. He was very -- came very highly recommended to 9 only the general counsel to the law finn but he was 9 us. 10 also — acted as my consigliere in a significant 10 Q. Like who, for example? 11 number of illegal operations and he was compensated 11 A. We wanted him in there. We were trying to 12 significantly for that, if that helps you understand 12 develop a significant tort group and we thought that 13 the difference. 13 he'd be a great part of it. I4 Q. It does. 14 Q. Who besides Russ told you that about Brad? 15 So, for example, when you were hiring former 15 A. It would have been other people in the ton 16 judges, let's use that as an example, Pedro and Julio, 16 group. I don't want to guess, Tonja, as to which 17 clearly they don't have a book of business coming in 17 other people told me, but it was -- well more than 18 because they haven't had clients, but they may carry 18 Russ. 19 some sort of prestige or give some legitimacy, if you 19 Q. Was it people within — 70 will, to the firm. How would you decide the salary 20 A. Might have been people in politics that I 21 for someone like that? 21 talked to that knew him because we had significant 12 A. Stu and l would discuss it. It was more a 22 input at the gubernatorial level with regard to tort 3 market issue than anything else, how much arc judges 23 reform and the like, and there were people there who 24 coming off the bench getting, how much business do we 24 knew who Brad was. It was more than one person that 25 think they can generate. 25 told us that. Page 11 Page 13 4 (Pages 10 to 13) FRJEDMAN, LOMBARDI & OLSON 305-371.6677 5cd93085.0554-4471-bcdd-ca2difenkli EFTA01130738  Q. Okay. When you were looking_arneoole to 1 1 that time with Farmer and Fistos and Jaffe and 2 bring in to the firm to legitimize, as you said. Your t 2 Mr. Edwards. 3 fine had a very unique area of practice and had a very 3 Q. Do you know where Mr. Edwards was working 4 unique environment to which to work. How did you know 4 when you first learned of him? 5 or how did you come to decide what people may or may 5 A. I don't recall whether he was working for 6 not fit into that? 6 someone or had his own practice, I don't recall. 7 A. Okay. Renton one second. I think you his) 7 Q. When did you first learn about Brad? 8 accidentally misstated my testimony. 8 A. I don't remember the time frame. 9 I was not bringing the people in to 9 Q. Do you recall when you first met with him 10 legithnize the law firm. I was bringing them in to 10 regarding a job? 11 the legitimate side of the law finn. The bulk of tht 11 A. No. The easiest way to figure that out is 12 law firm, despite the lack of financial success, was a 12 to go look at his personnel file, it will have the 3 large group of very honest, hard working lawyers 13 notes saying when he met with me the first time. 14 trying to do their best in difficult economic 14 Q. You don't have any recollection of your 15 conditions. There were some that were obviously not 15 first meeting with him? 16 legitimate. And the way I decided to bring people in, 16 A. No. As you know, 1 was hiring people left 17 again, it's really everything I just told you. Are 17 and right and I was also unfortunately very busy doing 18 you looking for how 1 brought people into the Poozi 18 things I shouldn't have been doing, so I don't have a 19 scheme? 19 specific recollection of when 1 hired him. 1 barely 20 Q. No, right now I'm just asking about the finn 20 have a specific recollection of when 1 hired me. 21 because, as 1 said, it's a very unique way in which to 21 Q. But you did, in fact, meet with him? 22 practice and a very unique workplace environment with 22 A. I'm certain I met with him before I hired 23 politics and restaurants and parties at your home and 23 him. I can't imagine -- although I did hire people 24 things of that nature. I'm asking, personality wise, 24 without meeting them. I did hire people based on 25 other than the book of business, how did you decide on 25 other people's word, if they were people within the Page 14 Page 16 1 people that would be a good fit? 1 finn that 1 trusted. Because I always said, I had a 2 A. I looked for people that were outgoing, that 2 very simple, you lie or die by what you are telling 3 had the type of personality. On the legitimate side 3 me. If you are telling me this guy is good and he's 4 of the business, people that had charisma that were — 4 not good, that's on you, it's going to hurt your 5 that could go out and hustle and try to develop a book 5 income. So I used to tell my partner, people that 6 of business if they didn't have it. And as one of the 6 were recommending people to me, don't sell me a bill 7 50 percent of the shareholders of the firm I was 7 of goods just to get somebody in here because if you 8 trying to hire people I wanted to work with. 8 do that it's going to come back on you, it's going to 9 Q. Okay. When you would see people from whom 9 affect your income and your ability to grow in the 10 you would offer jobs, for example, as you mentioned 10 firm. So with that admonishment, I might have very 11 earlier with Brad and his practice, if somebody stated 11 well hired someone sight unseen based upon what 12 that people told you that he was a good lawyer, did 12 someone else told me. 13 you need to see him in action, so to speak, prior to 13 Q. But you did meet with Brad you say before he 14 your deciding to hire them or would you just take 14 came in to work? 15 people at their word for it? 15 A. Now that I'm saying it out loud, I think 1 16 A. Some of people I saw in action; he wasn't 16 did but really I'm guessing. I don't have a specific 17 one of them. Steve Osber is an excellent example of 17 recollection ofmeeting him. 18 that. 1 hired Steve after he was beating the living 18 Q. Do you recall if you knew that he had worked 19 daylights out of me on the other side of a case. And 19 as an assistant state attorney for a few years prior 20 I certainly would ask around about the people. But 20 to doing tort litigation? 21 the people that l trusted -- see, I can't remember. 1 21 A. I don't recall that one way or the other. 22 think Gary Fanner was working for me before Brad, and 22 Q. So you wouldn't have asked Howard Scheinberg 3 if I'm not mistaken he would have been one of the 23 or anybody about him before he came to work there? 24 people that 1 went to with regard to Brad because we 24 A. I can't say that I wouldn't have asked 25 were really developing that whole tort group around 25 because, like 1 said, I might have asked. But Page 15 Page 17 5 (Pages 14 to 17) FRIEDMAN, LOMBARDI & OLSON 305-371.6677 1140930854554-447f-buld-cs201O•941d1 EFTA01130739  1 unfortunately, you are taking a little tiny spot out 1 A. Epstein was a billionaire 2 of a very, very busy time period in my life and in the 2 Q. Okay. Did you know anything about the 3 life of the firm, so 1 can't tell you one way or the 3 legitimacy or illegitimacy of the claims prior to 4 other. 4 knowing he was a billionaire? 5 Q. I know you had a lot going on, I'm just 5 A. I knew what I was told. I didn't check it 6 trying to see if you remember anything specific about 6 out myself, but I trusted the people that told me. 7 this. 7 Q. And who told you? B Do you recall what salary you had offered 8 A. The only person I remember discussing it 9 Brad to come join the firm? 9 with, as I sit here today, is Russ Adler. But if 10 A. I do not. You have to just try to 10 Farmer and Jaffe and those guys were with me al the 11 differentiate that what I knew then is a lot different 11 time I likely would havesliseussed it with them a§ 12 than what 1 know now so ... 12 Bra, 13 Q. Meaning? 13 Q. So were you aware of tlt case before tau 14 A. Obviously meaning that at the point in time 14 made an offer to Brad to join the firm? 15 that I was hiring him or maybe a year after,l would 15 A. In 16 be able to tell you what 1 was paying him, but now 16 Q. You said you didn't -- I don't want to 17 it's insignificant. I don't remember how much I was 17 misquote you. You said you heard about it from other 18 paying him. 18 people, but you didn't do anything to know that 19 Q. Did you learn about his book of business or 19 personally. Was that before you made the offer of 20 know what kind of cases he was bringing in prior to 20 employment? 21 hiring him? 21 A. I made the offer of employment based upon 22 A. I do know that he — 1 discussed either with 22 what other people had told me about Brad. 23 Russ, well, I know with Russ, and perhaps some other 23 Q. About Brad and his book of business or just 24 people, I knew about the Epstein case. 24 Brad and his legal skills? 25 Q. What did you know about it? 25 A. Okay. When I say Brad, I mean Brad and his Page 18 Page 20 1 A. I knew that it was a significant case of 1 book of business and his legal skills. 2 potentially significant value against an extremely 2 Q. Okay. 3 collectible_rxxlophi le. for lack of a better word. 3 A. And his ability to generate business in the 4 Q. So was that case your primary motive in 4 future. 5 bringing Brad into the firm? 5 Q. You stated that you believed that you first 6 A. ) doubt it. I mean, I can't tell you one 6 heard about these cases from Russ and then perhaps 7 way or the other, but I doubt that I would bring him 7 from Brad. Once Brad was at the firm, did you keep up 8 in just for one case because what _lithe case fails, 8 with these cases, these Epstein cases? 9 then I'm stuck with a lawyer who can't do anything, 9 MR. SCAROLA: Excuse me, I'm going to 10 you know. 10 object to the form of the question. II is an 11 I'm not saying, Brad, that you couldn't do 11 inaccurate reflection of the prior testimony. It has 12 anything, I'm just saying that if 1 only relied on one 12 no predicate. There was no reference about having 13 case, then if I bring a lawyer in for one case and one 13 heard about these cases from Brad. The names 14 case only, what do I do with him when the case is 14 mentioned were Adler, possibly Farmer, possibly 15 over. 15 Jaffe. 16 Q. How did you know that this case would be a 16 BY MS. HADDAD: 17 collectible case then? 17 Q. Once Brad started workings the firm 18 MR. SCAROLA: I'm going to object to the 18 you've already testified you already knew about these 19 form of the question because it misstated the prior 19 Epstein cases, correct? 20 testimony. The prior testimony was not that it was a 20 A. Yes. 21 collectible case but that it was a case against a 21 Q. How did youlteenabreast of these cases? 22 "extremely collectible pedophile." 22 A. I didn't. 23 BY MS. HADDAD: 23 Q. You didn't know anything about them? 24 Q. What made you think that this case had any 24 A. I didn't say I didn't know anything. I said 25 financial value? 25 I didn't keep track of it. Page 19 Page 21 6 (Pages 18 to •21) FRIEDMAN, LOMBARDI & OLSON 305-371-6677 5od93085.0554-4471-bcdd-ca2d810941dt EFTA01130740  1 Q. You didn't keep track of it? t 1 interaction — 2 A. 1 did not keep track of it. From time to 2 Sony, Tonja, I didn't mean to speak over 3 time Russ and the other guys in the tort group would 3 you. 4 tell me what was going on in certain cases, but until 4 If you talk to the people in the firm. if 5 I made a decision to utilize that file for an illerar- 5 they are honest with you, they'll tell you my 6 purpose related to something illegal that 1 was doing 6 interaction was far more significant with Russ Adler, 7 along with my-co-conspirators, I lust assumed my 7 Probably more so because he was a co-conspirator of 8 •lawyers were going to work the case and eventually it 8 mine. My interaction with Russ was far greater by 9 would hopefully work out well for the law finn. 9 many, many percents over my interaction with Brad, and 10 Q. At your firm, when e-mails would go out to 10 then you go down the line. I had more interaction 1 1 attorneys at RRA or all attorneys at RRA, were you 11 with Mr. Fanner than I did with Mr. Fistos, more 12 part of that e-mail group? 12 interaction with Jaffe than I did with Mr. Edwards, 13 A. You are talking about all staff? 13 and so on. 14 Q. No, all it says is attorneys at RRA. 14 Q. Russ was the head of your tort group, right? 15 A. It's the e-mail group "attorneys"? 15 A. Yes. 16 Q. Yes. 16 Q. So these cases fell under the tort group; is 17 A. Yes, I'm a part of that e-mail group. 17 that correct? 16 Q. And I appreciate that you were very busy and 18 A. Yes, it fell under the -- fell under Russ' 19 may not have read all of them, but you did receive 19 purview ultimately, yes. 2 0 those e-mails when they would go around? 20 Q. And Brad was a partner at your firm during 21 A. Yes, and I tried my best to read them. 21 the time these cases were there, correct? 22 Q. Okay. At what point did you decide to use 22 A. I believe that was his title. He was either 2 3 this case to further your Ponzi scheme? 23 partner or shareholder. I don't think we had made him 24 A. I don't remember the date, but 1 can give 24 a shareholder yet. 2 5 you the circumstances, if you'd like. 25 Q. But he wasn't coming in as an associate, Page 22 Page 24 1 Q. Please do. 1 correct? 2 A. The Ponzi scheme was running very low on 2 A. To the best of my recollection, no. 3 capital. My co-conspirators and 1 needed to find a 3 Q. So you stated that you learned this case 4 new feeder fund, new investment sources. We had a 4 was -- I don't want to misquote you and listen to a 5 couple of very large, significantly wealthy potential 5 long speaking objection, but what did you call this 6 investors out there. I was looking for something that 6 case? 7 would have been very attractive. We had had a lot of 7 MR. SCAROLA: Who wants the quote? 8 inquiry during the due diligence period with these 8 THE WITNESS: It was a substantial case 9 people that were doing due diligence on the putative 9 with a -- what I perceived to be a highly collectible 10 cases that we were selling. And when I thought about 10 pedophile as a defendant. 11 the Epstein case, realizing that it was a substantial 11 BY MS. HADDAD: 12 actual file in the office, I came up with the idea 12 Q. Right. How did you know at the time when 13 that ifI created a fake confidential settlement 13 you said these investors wanted to investigate and you 14 circling around — based upon this actual_case, they 14 said you were going to create a fake settlement, how 15 would be able to increase the level of due diligence 15 did you know that this case was the case that you 16 that I was able to offer to my potential investors. 16 could use? 17 Q. How did you know this was a substantial file 17 A. From talking to all the people that I just 18 in your office at that time? 18 said, Adler, Fistos, Jaffe, Farmer, Mr. Edwards, to 19 A. Again, through the people 1 spoke to in the 19 the extent that I spoke to him about it. 20 office. 20 Q. Did you speak with Mr. Edwards about the 21 Q. Such as who? 21 case? 22 A. Again, same people, Adler, Farmer, Jaffe, 22 A. I don't have a specific recollection one way 23 Fistos. 23 or the other. 1 remember speaking to him at least 24 Q. You never spoke to Brad about this case? 24 briefly the day or the day of or the day before the 25 A. 1didn't say that. but 1had a lot more 25 actual investor's due diligence was going on as to Page 23 Page 25 7 (Pages 22 to 25) FRIEDMAN, LOMBARDI & OLSON 305-371-6677 5ed93085-0554-4471-bcdd-ca2d810941d1 EFTA01130741  1 what was going on. And 1 may have spoke to him, I 1 and with that, with the Q-task and the e-mails, did 2 know I spoke to Russ, but 1may have spoke to him as 2 someone assist you with reviewing everything and 3 well within a couple of days just prior to this due 3 letting you know what was going on within the groups? 4 diligence because I was trying to at least get some 4 MR. SCAROLA: Excuse me. I'm going to 5 information in my head that ] could use when I was 5 object to counsel's testimony. Object to the form of 6 creating this story for the investors. 6 the question as leading. 7 Q. Scott, what's Q-task? 7 THE WITNESS: I really don't even 8 A. Q-task is a web based software system that 1 8 understand the question. 9 had invested 37 million in. 9 Can you try to rephrase it for me. Tonja? 10 Q. And what was the purpose of this internet 10 BY MS. HADDAD: 11 system? 11 Q. Of course, I would. 12 A. To be able to communicate in a secure 12 Did you keep abreast of everything that was 13 fashion and in a unique group fashion about specific 13 going on in every practice group or was someone 14 files. 14 through Q-task and e-mails, for example, or was 15 Q. So forgive me, we all know I'm not good with 15 someone giving you information keeping you posted on 16 the computer. That was something that would be useful 16 what was going on within the practice? 17 within a law firm, why? 17 A. Well, as pan of the tort group l had a 18 A. Because it allowed you to create groups and 18 pretty good idea of what was going on there all the 19 have both general and private chats, organize data in 19 time just because of the significant amount of 20 a very unique fashion. That was, at least to our way 20 interaction, both legitimate and otherwise, that I had 21 of thinking, would have been very, very helpful in the 21 with Russ Adler, so I was probably more up-to-date on 22 law firm setting with multiple practice groups. 22 that group than any group other than the labor and 23 Q. Did you belong to any groups on Q-task? 23 employment group, again, because ] had such 24 A. I'm certain that I did. 1 don't remember 24 significant interaction with Stu Rosenfeldt, both 25 which groups I belonged to. I never got into the full 25 legitimately and illegitimately, so I knew what was Page 26 Page 28 1 use of it. I tried to, but again, l was vet), busy 1 going on in that group. 2 doing other things. But 1 know that Mr. Adler's group 2 I tried, as best as I could, given my time 3 used it extensively. 3 constraints, to stay on top of what was going on, you 4 Q. Because it was your firm and, as you said, 4 know, throughout the firm. But 1 relied on other 5 you invested S7 million in it, did you have the 5 people like Debra Villegas and Irene Stay and David 6 ability to access a group if you wanted to? 6 Boden, Les Stracker to the lesser extent, to monitor 7 A. Yes. And if l couldn't,1 could get Russ to 7 what was going on in the different practice groups and 8 give me access. 8 keep me up to speed. 9 Q. So you didn't necessarily have to be invited 9 Q. Was there audio and video surveillance 10 into the Q-task group for you to be able to utilize or 10 throughout the entire firm or only within your office? 11 view the communications within it? 11 A. No, through the entire office, not in the 12 A. No, that's not true. I actually had to be 12 individual offices. 13 invited, that's what 1 was telling Russ to do, is to 13 Hang on. Not in the individual offices but 14 have me invited. 14 throughout the general office space. 15 Q. But I'm saying, the lawyers wouldn't have to 15 Q. So in 2009 how many floors did you have? 16 personally invite you, you can get someone within your 16 A. Three,1 think. 17 firm to give you access maybe without the lawyers 17 Q. And do you recall approximately how many 18 knowing? 18 attorneys you had working there at that time? 19 A. No,1 think it might have had a, quote, 19 A. Approximately 70. 20 unquote, confidential, super secret viewing 20 Q. And when you say "not the individual offices 21 capability, but I don't recall it having that, and I'd 21 but the other areas," do you mean -- would that 22 have no need to utilize that. Just invite me into the 22 include conference rooms? 23 group and let me see what's going on. 23 A. I didn't have surveillance in the conference 24 Q. Okay. 1 know that you are or were a very 24 rooms. 25 hands-on person within certain of the practice groups 25 Q. So can you please tell me exactly where you Page 27 Page 29 8 (Pages 26 to 29) FRIEDMAN, LOMBARDI & OLSON 305-371-6677 Sed93085-0554-4471-bcdtl-ca2d81.3941dI EFTA01130742  1 had audio and/or video surveillance? We'll start with 1 out, because I remember building out space and I 2 audio. 2 remember Jaffe and all those guys moving into that 3 A. I don't have a specific recollection of 3 space. 4 every place I had video and audio, but it was in -- I 4 Q. If you were building up that space, do you 5 had it set up so that in all of the common areas, 5 recall when you put the surveillance in there? 6 including our shareholder's lounge, we had -- I had 6 A. It would have been while they were building 7 audio and video capabilities. 7 it out or shortly thereafter. 8 Q. When you say *capabilities," does that mean 8 Q. During 200