EFTA01164263.pdf

1 1 IN THE CIRCUIT COURT OF THE 15th JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA 2 CASE NO. 502009CA040800XXXXMBAG 3 JEFFREY EPSTEIN, 4 Plaintiff, 5 vs. 6 SCOTT ROTHSTEIN, individually, BRADLEY J. EDWARDS, individually, 7 and L.M. individually, 8 Defendants. 9 10 11 HEARING HAD BEFORE: THE HONORABLE DAVID F. CROW 12 DATE TAKEN: APRIL 1, 2011 13 TIME: 9:03 A.M. - 9:25 A.M. 14 PLACE: 205 North DIXIE HIGHWAY COURTROOM 9D 15 WEST PALM BEACH, FL 33401 16 TAKEN BY: THE PLAINTIFF 17 REPORTED BY: ROBYN MAXWELL, RPR, FPR, CLR, NOTARY PUBLIC, 18 REALTIME SYSTEMS ADMINISTRATOR 19 20 21 22 23 24 25 ORANGE REPORTING EFTA01164263  2 1 APPEARANCE S: 2 JOSEPH L. ACKERMAN, JR., ESQUIRE OF: FOWLER, WHITE, BURNETT, P.A. 3 901 Phillips Point West 777 South Flagler Drive 4 West Palm Beach, FL 33401 5 ON BEHALF F THE PLAINTIFF 6 JACK SCAROLA, ESQUIRE 7 OF: SEARCY, DENNEY, SCAROLA, BARNHART & SHIPLEY, P.A. 2139 Palm Beach Lakes Boulevard 8 We Palm Beach FL 33409 ON BEHALF OF THE DEFENDANT 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ORANGE REPORTING EFTA01164264  PROCEEDINGS 2 3 THE COURT: Okay. We're here once again on 4 April 1st on the Epstein versus Rothstein matter. 5 Listen, guys, I have looked at this thing 6 and I've got a suggestion and I want to see what 7 you all think about it. 8 I don't want to be ruling on these things on a piecemeal basis. It seems to me that to do 10 so is, really, I don't get the full flavor of it. 11 So what I'd like to do here is to take a whole day 12 and have all of this, including all the privilege 13 and stuff that are outstanding, privileged logs, 14 whether they're down at the Trustee's or 15 everywhere else, these questions on depositions, 16 questions you asked Mr. Epstein on deposition all 17 at one time. 18 And I can do it -- and I know we're going 19 to have a status conference -- in fact, it's set 20 for it looks like April 15th. I want to set aside 21 a whole day to do this if you're not willing to go 22 to a special master. And I understand you're not 23 willing to do that. It's up to you guys on that. 24 But I just really don't want to be ruling 25 on this stuff. We had three of them here in the ORANGE REPORTING EFTA01164265  4 1 last couple of days and -- the one yesterday and 2 the one today. 3 I really have to find out because I think 4 part of the issue here is what I allow for one 5 side is going to be -- what's good for the goose 6 is good for the gander I guess is the best way to 7 put it. I think it all kind of dovetails 8 together. 9 And I'm afraid if I'm going to be doing 10 this piecemeal, you know, every couple weeks or 11 something like that, it's going to get really -- 12 get really confusing to me. I just don't have the 13 ability to compartmentalize like that. And that's 14 what I'd like to do it. 15 If you can just get it all in front of me, 16 let me sit down, if it takes two days even to get 17 through it, do it like that and have it all 18 together and get it all -- know what I'm talking 19 about, look at the documents we're talking about. 20 MR. ACKERMAN: That is fine with me, 21 Your Honor. 22 MR. SCAROLA: Makes perfect sense to us. 23 Just so that the record is clear, 24 Your Honor said you have not agreed to a special 25 master. And I want to reflect again that we have ORANGE REPORTING EFTA01164266  1 repeatedly offered to have Judge Carney, who has 2 done substantial work on this, be appointed as 3 special master by this Court. 4 He has volunteered to do that work. We are 5 in agreement to help to relieve the Court of some 6 of that burden to have him to continue -- to have 7 him continue to do that work, appointed as a 8 special master in this case. 9 There has been a consistent refusal to do 10 that, but I want to be clear that we have agreed. 11 Thank you, sir. 12 THE COURT: Again, I guess, as a lawyer -- 13 MR. ACKERMAN: Your Honor -- 14 THE COURT: As an entity we together have 15 not agreed. 16 MR. SCAROLA: Your Honor, we're -- 17 MR. ACKERMAN: Your Honor, we're still -- 18 we're still looking into that. 19 THE COURT: But that's what you showed me 20 last time. 21 MR. ACKERMAN: There's another issue that's 22 involved. It has nothing to do with 23 Judge Carney's capability, honesty or anything. 24 But when we originally undertook this with the 25 bankruptcy court, we agreed to pay for the ORANGE REPORTING EFTA01164267  6 1 expenses to do the in camera review so that we 2 would take it off of the burden of the Trustee. 3 And my client has incurred in excess of 4 $35,000 in special master fees, and we haven't 5 even got to an in camera review. And so we're 6 trying to find an efficient way to deal with that 7 issue, and that's the sole issue. 8 THE COURT: Let me suggest to you the least 9 efficient way is having me on that. And I don't 10 mean that I'm not capable of doing it. It's just 11 that that's not the only thing I have to do. 12 MR. ACKERMAN: And I respect that. And 13 we're not trying to saddle you with that burden 14 with the other issues that you have. 15 But to the extent that Mr. Scarola is 16 suggesting that we have some problem with 17 Judge Carney in terms of his ability, his 18 integrity would be false. Now, I do believe, 19 though -- 20 THE COURT: Let me interrupt you just one 21 second. Wouldn't it be better, though, even 22 though you may have spent some money now not to 23 reinvent the wheel with somebody new? Because I 24 suspect that it would -- 25 MR. ACKERMAN: That's -- ORANGE REPORTING EFTA01164268  7 1 THE COURT: This is not -- this is not -- I 2 mean I know both of you all think it's simple, but 3 to me it's not simple. There are some really 4 complex issues here. I shouldn't say complex 5 issues, but there's really some issues that 6 whichever way we're going is going to make a 7 tremendous difference it seems to me in how this 8 case proceeds. And it's critical it seems to me 9 that that decision should -- those decisions 10 should be made upfront in this case. 11 MR. ACKERMAN: That's a discussion as I 12 advised Mr. Scarola yesterday that is going on 13 right now with my client. However, I do believe 14 it would still be in the Court's best interest to 15 have this day hearing so that you can be familiar 16 with the issues either as they're presented to you 17 or as they come on recommendations, if that's the 18 way we go. 19 I still believe there's still a number of 20 hearings that are scheduled that are before you. 21 We have two pending matters coming up, two next 22 week, which relate to discovery requests that we 23 have compelled from Mr. Edwards that we need to 24 get on with. 25 There is a subpoena that we sent to the ORANGE REPORTING EFTA01164269  8 1 Trustee. And based on the Court's prior order, that's scheduled for April 8th. We'd like to get 3 that resolved with you so that we can get on with 4 that kind of discovery. 5 THE COURT: I understand because all of 6 that has to be kind of decided together. The 7 other thing I want to do is I want an amended 8 complaint filed by the Plaintiff in this case. 9 mean I tried to figure out what the operative 10 thing is right now, and I don't -- did I give you 11 permission to file an amendment? I don't know if 12 there was ever an order. 13 But regardless, I want an amended complaint 14 filed that I know -- and then if you want to file 15 a response to that, you know, within a short 16 period of time so I've got some pleadings I can 17 look at and see where the parameters as to what 18 we're dealing with. 19 Because I've always been troubled -- and 20 again, I understand, Mr. Ackerman, you did not 21 draft the initial Complaint. It's not your work 22 product, but it is so amorphous that I don't even 23 know what -- 24 MR. ACKERMAN: I understand, but I would 25 like just to clarify -- mention two things to the ORANGE REPORTING EFTA01164270  9 1 Court. First of all, when we originally told the 2 Court that we intended to amend it, that was 3 accurate, but we were also operating under the 4 impression that we would have had an in camera 5 review of the documents from the Trustee long 6 before now. That's one of the reasons why it 7 hasn't been accomplished. 8 In the meantime, I did file a motion to 9 take out or remove certain provisions in the 10 Complaint, Mr. Scarola agreed to it, there was an 11 agreed order entered, so that some of -- and I 12 wasn't aware, as I mentioned yesterday, that it 13 was not your choice to have it done that way. But 14 we will go ahead and file it. 15 THE COURT: I issued the order, so I have 16 to live with it I guess. 17 MR. ACKERMAN: We'll do what you're asking. 18 I just need to point out to you that there may be 19 additional amendments coming when we get these 20 additional documents. 21 THE COURT: Okay. I have to make decisions 22 now based upon what the Complaint says, what the 23 Answer and Counterclaim say so I can look at the 24 parameters of what this case is about so I can 25 make decisions on privileged objections, number ORANGE REPORTING EFTA01164271  10 1 one, Fifth Amendment privilege obviously, 2 attorney/client privilege, work product 3 privileges, as well as the scope of the discovery 4 itself based upon whether or not these things are 5 relevant or material and what I'm going to require 6 Mr. Epstein to answer or Mr. Edwards to answer, 7 quite frankly. 8 And I want to do that at one time so I have 9 it all in front of me and I'm not trying to 10 piecemeal it. And I can get you -- what I'll do 11 is I've got some long trials scheduled here in the 12 next couple of weeks, and I will just take a day 13 off from one of those trials and spend it with you 14 guys. 15 I don't know how soon you all can get all 16 of this stuff to me or is it practical that can be 17 done. And I don't know what form it would come to 18 me, because I know there are subpoenas to the 19 Trustee, there are evidently objections to the 20 privileged logs down there. I don't even know 21 what it is down there. 22 MR. ACKERMAN: What about the hearings that 23 are scheduled next week? 24 THE COURT: Well, I'd like to consolidate 25 it all together as well as with this. All that ORANGE REPORTING EFTA01164272  11 1 includes all of the discovery issues; what your 2 client has to answer in deposition, what 3 Mr. Scarola's client has to answer in deposition, production requests, interrogatories, the documents that the privileges have been asserted, 6 whether or not there has or has not been a waiver of the Fifth Amendment privilege as contended by 8 Mr. Scarola or whether or not your client does 9 have a right to a Fifth Amendment privilege so 10 that we can get focused in on what I'm going to at 11 least allow in terms of discovery, and then we can 12 get to some of the substantive issues in the case 13 it seems to me at some point. Otherwise we're 14 never going to get there. 15 MR. ACKERMAN: I understand. 16 MR. SCAROLA: I think that the motions that 17 have been filed crystallize the issues that need 18 to be focused upon by the Court. I think that it 19 would be advantageous for Your Honor if each side 20 were to consolidate those motions into a single 21 motion addressing each of the discovery issues 22 that we perceive to be outstanding. 23 So that shouldn't take very long because 24 we're really -- we're not creating new work 25 product. We're consolidating existing work that's ORANGE REPORTING EFTA01164273  12 1 already been done. And I would be prepared to 2 move forward with that day long hearing at 3 Your Honor's earliest convenience. 4 THE COURT: What about the documents that 5 are in the bankruptcy court? Is there any way 6 that I can get that in front of me? 7 MR. SCAROLA: Oh, absolutely. Yes. 8 THE COURT: I want that in front of me too. 9 I mean I'm not -- I'm not -- I don't want to 10 interfere with whatever the bankruptcy judge 11 thinks he can or cannot do, but I think I have - 12 MR. ACKERMAN: I don't mean to interrupt, 13 but let me tell you what the dynamic has been in 14 the bankruptcy court. And I'm not trying to 15 rehash old issues, but I want to answer the 16 Court's questions so you can understand why we 17 ended up over there to some extent. 18 When the first subpoena was initially 19 issued, it went to the Trustee. Mr. Scarola 20 didn't object, and then it was served on the 21 Trustee. 22 Initially we were advised that there were 23 approximately 5,000 e-mails that were responsive 24 to that request and they were prepared to turn it 25 over. Now, because of the number of requests for ORANGE REPORTING EFTA01164274  13 1 documents from the Trustee from the adversary 2 proceedings and the people that are pursuing RRA 3 for a variety of reasons, the Trustee came up with 4 a joint confidentiality privilege agreement that 5 they wanted to enter into with everybody so that 6 they would not inadvertently waive any privileges 7 that may exist with any existing clients from the 8 old RRA firm. 9 Now, we weren't able to do -- we attempted 10 to do that agreement, but the Trustee never went 11 forward with it, so we filed a motion in front of 12 the bankruptcy court asking for these documents. 13 And that is how he -- we had argument in front of 14 it. A lot of the things we've argued here were 15 argued before Judge Ray. And we ended up agreeing 16 to pay for a special master. 17 Now, at that time the bankruptcy court said 18 these are the property of the Trustee. The 19 Trustee has an interest in not waiving the 20 privileges. At that time and concurrently now 21 there is another party seeking the same set of 22 documents that we had sought. 23 So each time a party has come before the 24 bankruptcy court to get records, what the 25 Bankruptcy Judge has done through the Trustee is ORANGE REPORTING EFTA01164275  14 1 enter into some privilege type of agreement with 2 regard to those records. 3 Now, the problem with that is that you get 4 the records, and then you have to look at them and 5 then go back and get permission to use them. In 6 this case, because the Trustee -- because we had a 7 special master appointed, we weren't required to 8 do that. 9 So what we need to do, and what I'd like to 10 do if Mr. Scarola agrees, is go back to the 11 bankruptcy court and say we would like to proceed 12 to get records and have rulings on privilege as 13 you have said be governed by you and let that be 14 sufficient for the Trustee, because the Trustee is 15 worried about producing matters that would be 16 privileged and then goes and seeks relief or 17 decisions from the bankruptcy court as it relates 18 to their responsibility because of their fiduciary 19 responsibility as Trustee. 20 THE COURT: I understand that, but here's 21 the concern I have. Like it came up the other 22 day, there are other people who have privilege 23 interests in some of these documents, I presume, 24 other than the parties in front me, right? I 25 mean -- ORANGE REPORTING EFTA01164276  15 1 MR. ACKERMAN: Yes and no. I mean some of 2 them have -- for example, one of the parties has a 3 claim against in the adversary proceeding because 4 they represent the investors who lost money in 5 this Ponzi scheme. So a lot of the documents that 6 they're seeking that may be privileged are the 7 same. So there's an issue of potential 8 conflicting -- 9 THE COURT: I understand. What I'm talking 10 about are other claimants out there that may have 11 been involved in some type of joint representation 12 agreement sharing information with the Rothstein 13 firm that are not in front of me. Mr. Edwards is 14 in front of me, but those people aren't in front 15 of me. 16 I mean it's such a conundrum I don't -- you 17 know, Gordian's knot I guess is the best way to 18 describe it. How can I get that stuff in front of 19 me so I can see it? That's what I'm getting at. 20 MR. SCAROLA: All we need to do, Your 21 Honor, is to ask Judge Carney to deliver the 22 documents to you, and I'm sure he'd be very happy 23 to do that. He's got a full set. 24 THE COURT: As much as I don't want to do 25 this -- and I don't mean that in the way that it ORANGE REPORTING EFTA01164277  16 1 sounded. Let me repeat that. It's just difficult 2 and time consuming, but I think it has to be done 3 here. And I'm finally convinced -- I'm finally 4 convinced, I think after looking at all this, I 5 think it really needs to be in front of me and I 6 need to look at it, I need to make decisions 7 because otherwise we're going off in all kinds of 8 directions and I don't know what the end game is going to be. 10 And I'm afraid that because there's some 11 really critical issues here and it's really 12 important that I try to make at least the best 13 decision I can based on the best information I've 14 got before we head down the road so far. How do 15 we do that? 16 MR. SCAROLA: Could we set some time 17 limits? I think that Your Honor is absolutely 18 right. The first thing we need is an amended 19 complaint that clearly states what they contend 20 that the causes of action are and the theories of 21 damage against Mr. Edwards. 22 I really don't care Mr. -- I don't care 23 about Mr. Rothstein. I want to know what they are 24 claiming against Mr. Edwards. I suggest that that 25 ought to be done within a five-day period of time, ORANGE REPORTING EFTA01164278  1 and we'll answer within five days. 2 THE COURT: Can you handle that? 3 MR. ACKERMAN: I'd like to have maybe seven 4 or eight. You know, five days is kind of -- THE COURT: Seven and a half, will that -- 6 MR. ACKERMAN: No, six and a half. THE COURT: -- eight days, whatever you -- that's fine. MR. SCAROLA: And we will respond within 10 five days to that new Complaint. 11 THE COURT: And then everybody can file 12 consolidated motions on anything that's pending in 13 front of me in regard to the depositions or 14 discovery. And then what? 15 MR. SCAROLA: Another five days after the 16 Complaint and the Answer have been filed to 17 simultaneously file consolidated discovery 18 motions. 19 THE COURT: Okay. 20 MR. SCAROLA: And then Your Honor could set 21 a hearing any time after that five-day period. 22 THE COURT: Well, how about the stuff in 23 the bankruptcy with Judge Carney? Do you want to 24 have them -- do you all want to have an agreement 25 or do you want to have that in the order or how ORANGE REPORTING EFTA01164279  18 1 are we going to accomplish that? 2 MR. SCAROLA: Well, we can -- we can put 3 that in the order. I don't know that it's 4 necessary to do that because Judge Carney would, 5 I'm sure, voluntarily deliver those materials to 6 you. 7 But we can include in the order the fact 8 that you are requesting that the special master 9 deliver the documents currently in his possession 10 to this Court so that Your Honor may review those 11 with the understanding that they'll be returned 12 following that review. 13 THE COURT: Okay. That sounds like a 14 rational way to proceed. 15 MR. ACKERMAN: There's only one other -- 16 well, there's one other issue. One of the 17 subpoenas that we have sent out to this -- to 18 the -- and it's the basis of our hearing next 19 April 8th -- to the Trustee, Judge Carney does not 20 have those documents. They have not been turned 21 over. 22 MR. SCAROLA: Nor do we. 23 MR. ACKERMAN: They don't have them either 24 and we don't, so we'd have to deal with that I 25 guess on one of the motions. I mean I think the ORANGE REPORTING EFTA01164280  19 1 best way to handle that is for you to rule on the 2 motion and then decide what we're going to do with 3 the documents after that. 4 THE COURT: Which of these need to be 5 produced to me in camera, and I'll look at them, 6 which is probably what's going to happen I would 7 suspect. 8 MR. ACKERMAN: Well, what about the motions 9 that are -- that we have already argued that you 10 have not ruled on? What is -- 11 THE COURT: I want them all consolidated. 12 I have not ruled on the discovery motions and the 13 rehearing motion because I started looking at 14 that, and I looked at it this morning and I said, 15 you know, this all dovetails together, and I 16 really need to have a comprehensive hearing. 17 And if it takes all day, it takes all day 18 to really ferret out what the issues are, what I'm 19 going to allow both sides to do because you're 20 asking for a lot of information from Mr. Edwards 21 and he's asking obviously a lot of information 22 from you. And I just think it all ought to be 23 done at one time. 24 MR. SCAROLA: One motion that has been 25 argued that will have an impact upon the scope of ORANGE REPORTING EFTA01164281  20 1 discovery is clearly the punitive damage motion. 2 And we will deliver if those documents have not 3 yet been delivered to Your Honor -- 4 THE COURT: You should have gotten a call 5 from my JA -- 6 MR. SCAROLA: Asking that we deliver the 7 summary judgment materials to you. They'll be 8 delivered today. 9 MR. ACKERMAN: And I would like -- I assume 10 that I can deliver my response to that that was 11 part of my -- 12 THE COURT: What I asked for was -- and I 13 need to make it clear was that the motion -- both 14 of you at the hearing argued things that were 15 presented to me at the summary judgment hearing, 16 and I don't have that material anymore. Okay? 17 That was discarded once the hearing -- once I 18 ruled. 19 So if you want me to look at anything that 20 I considered in the motion for summary judgment 21 hearing, then get it to me within five days to 22 look at. 23 MR. ACKERMAN: That's what I wanted -- 24 THE COURT: I don't want new stuff. I 25 don't want new memorandums. I don't -- ORANGE REPORTING EFTA01164282  21 1 MR. ACKERMAN: No. Just the stuff that we 2 argued that relates to that issue. 3 THE COURT: Right. You send it to me and 4 I'll take a look at it because I don't have it 5 anymore. And it was all based upon what -- and I 6 do have a recollection, but I don't make rulings 7 off what I recall to -- 8 MR. SCAROLA: It should become pretty 9 apparent to Your Honor when you look at the 10 materials. I remember that they are very 11 voluminous, but the motion itself summarizes I 12 think all of the relevant document that are 13 included in the Appendix. So when you look at it, 14 it's probably best that you start with the motions 15 on both sides. 16 THE COURT: I will do that. 17 MR. ACKERMAN: I assume that you're going 18 to defer that ruling until you have all the 19 motions? 20 THE COURT: I don't know what I'm going to 21 do. I am going to wait to look at the motion. I 22 can't say that. I mean if there's evidence in the 23 record right now well, first of all, I guess I 24 should -- I am going to wait quite frankly until 25 there's pleadings. ORANGE REPORTING EFTA01164283  LL 1 MR. ACKERMAN: Until you have pleadings. 2 THE COURT: Yeah, amended pleadings at 3 least for that. So who is going to prepare the 4 order here? 5 MR. SCAROLA: Respectfully, sir, the motion to assert claim for punitive damages is based upon 7 our Counterclaim. That's not going to be amended. 8 So I don't know that Your Honor needs to wait for 9 an amended complaint to decide whether we have 10 presented a prima facie case for the assertion of 11 a claim for punitive damages on our Counterclaim. 12 And it will have an impact on the scope of 13 discovery. So knowing that in advance of the 14 one-day hearing would certainly be of assistance 15 to both sides. 16 MR. ACKERMAN: Your Honor, I respectfully 17 disagree. If you are going to consider this all 18 at one time with regard to the scope of the 19 pleadings and what's at issue, a lot of the things 20 Mr. Scarola has argued allows him to get into 21 punitive damages based on the Complaint you're 22 asking me to amend. 23 THE COURT: Well, but what he's saying -- 24 and I don't know what the amended pleadings are 25 going to do. You're going to file your amended ORANGE REPORTING EFTA01164284  23 1 complaint. You're going to file your response. 2 You will or will not amend your Counterclaim, you 3 know, and I will make a ruling. That's all I can 4 tell you. Whether I make a ruling before -- 5 MR. ACKERMAN: I guess we need to know 6 whether to list that motion on the ones that are 7 scheduled for the hearing. And I think we should 8 if you're continuing -- if your goal is to do all 9 of it at one time. 10 THE COURT: All I'm asking you to do now is 11 set the discovery motions in front of me. If I 12 rule on that punitive damage claim before that 13 hearing, okay, then that will affect what is or is 14 not discoverable, obviously, on both sides. If I 15 don't rule on it, then I will consider it at that 16 time. That's all I can tell you, okay, because I 17 don't know what I'm going to do at this point. 18 Would you all prepare an order to that 19 effect and at least agree on what we're doing. 20 And I'm going to cancel the case management 21 conference which is set for April 15th at 22 11 o'clock. And would you all sometime after 1:30 23 this afternoon get ahold of my judicial assistant, 24 and she'll set up a full day for you. And it will 25 probably be mid-April -- excuse me, mid-May I ORANGE REPORTING EFTA01164285  24 1 would suspect is when I can get it done. Okay? 2 MR. SCAROLA: Thank you, sir. 3 MR. ACKERMAN: Thank you, Your Honor. The 4 hearings next week we're going to put off to 5 mid-May? 6 THE COURT: All the hearings on discovery 7 motions or anything like that, I want you to put 8 them all in the consolidated motions. We'll have 9 it at one time. 10 MR. SCAROLA: Thank you very much, sir. 11 THE COURT REPORTER: Would you care for a 12 copy? 13 MR. SCAROLA: I will take a copy. Thank 14 you. 15 (Thereupon, the proceedings were adjourned.) 16 17 18 19 20 21 22 23 24 25 ORANGE REPORTING EFTA01164286  25 1 CERTIFICATE 2 3 4 I, ROBYN MAXWELL, Registered Professional 5 Court Reporter, State of Florida at Large, certify that I 6 was authorized to and did stenographically report the 7 foregoing proceedings and that the transcript is a true 8 and complete record of my stenographic notes. 9 10 Dated this 1st day of April, 2011. 11 12 13 14 ROBYN MAXWELL, RPR, FPR, CLR 15 REALTIME SYSTEMS ADMINISTRATOR 16 17 18 19 20 21 22 23 24 25 ORANGE REPORTING EFTA01164287  1 WORD INDEX 11:15 12:12 15:1 argued 13:14, 15 Carney 5:1 6:17 17:3, 6 18:15, 23 19:9, 25 20:14 15:21 17:23 18:4, <0> 19:8 20:9, 23 21:1, 21:2 22:20 19 03 1:13 17 22:1, 16 23:5 argument 13:13 Carney's 5:23 24:3 aside 3:20 CASE 1:2 5:8 7:8, < 1> action 16:20 asked 3:16 20:12 10 8:8 9:24 11:12 1 1:12 23:22 additional 9:19, 20 asking 9:17 13:12 14:6 22:10 23:20 11 23:22 addressing 11:21 19:20, 2/ 20:6 causes 16:20 15th 1:1 3:20 adjourned 24:15 22:22 23:10 certain 9:9 23:21 ADMINISTRATOR assert 22:6 certainly 22:14 1st 3:4 25:10 1:18 25:15 asserted 11:5 certify 25:5 advance 22:13 assertion 22:10 choice 9:13 <2> advantageous 11:19 assistance 22:14 CIRCUIT 1:1, 1 2011 1:12 25:10 adversary 13:1 assistant 23:23 claim 15:3 22:6, 11 205 1:14 15:3 assume 20:9 21:17 23:12 2139 2:7 advised 7:12 12:22 attempted 13:9 claimants 15:10 25 1:13 affect 23:13 attorney 10:2 claiming 16:24 afraid 4:9 16:10 authorized 25:6 clarify 8:25 <3> afternoon 23:23 aware 9:12 clear 4:23 5:10 30 23:22 agree 23:19 20:13 33401 1:15 2:4 agreed 4:24 5:10, <B> clearly 16:19 20:1 33409 2:8 15, 25 9:10, 11 back 14:5, 10 client 6:3 7:13 35000 6:4 agreeing 13:15 bankruptcy 5:25 10:2 11:2, 3, 8 agreement 5:5 12:5, 10, 14 13:12, clients 13:7 <5> 13:4, 10 14:1 17, 24, 25 14:11, 17 CLR 1:17 25:14 5000 12:23 15:12 17:24 17:23 come 7:17 10:17 502009CA040800XXX agrees 14:10 BARNHART 2:7 13:23 XMBAG 1:2 ahead 9:14 based 8:1 9:22 coming 7:21 9:19 561.686.6300 2:8 ahold 23:23 10:4 16:13 21:5 compartmentalize 561.727.2423 2:4 allow 4:4 11:11 22:6, 21 4:13 19:19 basis 3:9 18:18 compelled 7:23 <7> allows 22:20 BEACH 1:1, 15 2:4, complaint 8:8, 13, 777 2:3 amend 9:2 22:22 7, 8 21 9:10, 22 16:19 23:2 BEHALF 2:5, 9 17:10, 16 22:9, 21 <8> amended 8:7, 13 believe 6:18 7:13, 23:1 8th 8:2 18:19 16:18 22:2, 7, 9, 24, 19 complete 25:8 25 best 4:6 7:14 complex 7:4, 4 <9> amendment 8:11 15:17 16:12, 13 comprehensive 9 1:13, 13 10:1 11:7, 9 19:1 21:14 19:16 901 2:3 amendments 9:19 better 6:21 concern 14:21 9D 1:14 amorphous 8:22 Boulevard 2:7 concurrently 13:20 Answer 9:23 10:6, BRADLEY 1:6 conference 3:19 <A> 6 11:2, 3 12:15 burden 5:6 6:2, 13 23:21 A.M 1:13, 13 17:1, 16 BURNETT 2:2 confidentiality 13:4 ability 4:13 6:17 anymore 20:16 conflicting 15:8 able 13:9 21:5 <C> confusing 4:12 absolutely 12:7 apparent 21:9 call 20:4 consider 22:17 16:17 Appendix 21:13 camera 6:1, 5 9:4 23:15 accomplish 18:1 appointed 5:2, 7 19:5 considered 20:20 accomplished 9:7 14:7 cancel 23:20 consistent 5:9 accurate 9:3 approximately 12:23 capability 5:23 consolidate 10:24 ACKERMAN 2:2 APRIL 1:12 3:4, 20 capable 6:10 11:20 4:20 5:13, 17, 21 8:2 18:19 23:21, care 16:22, 22 consolidated 17:12, 6:12, 25 7:11 8:20, 25 25:10 24:11 17 19:11 24:8 24 9:17 10:22 ORANGE REPORTING EFTA01164288  2 consolidating 11:25 decided 8:6 EPSTEIN 1:2 3:4, 18 16:5 17:13 consuming 16:2 decision 7:9 16:13 16 10:6 23:11 contend 16:19 decisions 7:9 9:21, ESQUIRE 2:2, 5 full 3:10 15:23 contended 11:7 25 14:17 16:6 everybody 13:5 23:24 continue 5:6, 7 DEFENDANT 2:9 17:11 continuing 23:8 Defendants 1:8 evidence 21:22 <G> conundrum 15:16 defer 21:18 evidently 10:19 game 16:8 convenience 12:3 deliver 15:21 18:5, example 15:2 gander 4:6 convinced 16:3, 4 9 20:2, 6, 10 excess 6:3 getting 15:19 copy 24:12, 13 delivered 20:3, 8 excuse 23:25 give 8:10 Counterclaim 9:23 DENNEY 2:7 exist 13:7 go 3:21 7:18 9:14 22:7, 11 23:2 deposition 3:16 existing 11:25 13:7 14:5, 10 COUNTY 1:1 11:2, 3 expenses 6:1 goal 23:8 couple 4:1, 10 depositions 3:15 extent 6:15 12:17 goes 14:16 10:12 17:13 going 3:18 4:5, 9, COURT 1:1 3:3 describe 15:18 <F> 11 7:6, 6, 12 10:5 5:3, 5, 12, 14, 19, 25 difference 7:7 facie 22:10 11:10, 14 16:7, 9 6:8, 20 7:1 8:5 difficult 16:1 fact 3:19 18:7 18:1 19:2, 6, 19 9:1, 2, 15, 21 10:24 directions 16:8 false 6:18 21:17, 20, 21, 24 11:18 12:4, 5, 8, 14 disagree 22:17 familiar 7:15 22:3, 7, 17, 25, 25 13:12, 17, 24 14:11, discarded 20:17 far 16:14 23:1, 17, 20 24:4 17, 20 15:9, 24 discoverable 23:14 fees 6:4 good 4:5, 6 17:2, 5, 7, 11, 19, 22 discovery 7:22 8:4 ferret 19:18 goose 4:5 18:10, 13 19:4, 11 10:3 11:1, 11, 21 fiduciary 14:18 Gordian's 15:17 20:4, 12, 24 21:3, 17:14, 17 19:12 Fifth 10:1 11:7, 9 gotten 20:4 16, 20 22:2, 23 20:1 22:13 23:11 figure 8:9 governed 14:13 23:10 24:6, 11 25:5 24:6 file 8:11, 14 9:8, 14 guess 4:6 5:12 COURTROOM 1:14 discussion 7:11 17:11, 17 22:25 9:16 15:17 18:25 Court's 7:14 8:1 DIXIE 1:14 23:1 21:23 23:5 12:16 document 21:12 flied 8:8, 14 11:17 guys 3:5, 23 10:14 creating 11:24 documents 4:19 13:11 17:16 critical 7:8 16:11 9:5, 20 11:5 12:4 finally 16:3, 3 <H> CROW 1:11 13:/, 12, 22 14:23 find 4:3 6:6 half 17:5, 6 crystallize 11:17 15:5, 22 18:9, 20 fine 4:20 17:8 handle 17:2 19:1 currently 18:9 19:3 20:2 firm 13:8 15:13 happen 19:6 doing 4:9 6:10 First 9:1 12:18 happy 15:22 <D> 23:19 16:18 21:23 head 16:14 damage 16:21 20:1 dovetails 4:7 19:15 five 16:25 17:1, 4, HEARING 1:11 23:12 draft 8:21 10, 15, 21 20:21 7:15 12:2 17:21 damages 22:6, 11, Drive 2:3 FL 1:15 2:4, 8 18:18 19:16 20:14, 21 dynamic 12:13 Flagler 2:3 15, 17, 21 22:14 DATE 1:12 flavor 3:10 23:7, 13 Dated 25:10 <E> FLORIDA 1:1 25:5 hearings 7:20 DAVID 1:11 earliest 12:3 focused 11:10, 18 10:22 24:4, 6 day 3:11, 21 7:15 EDWARDS 1:6 following 18:12 he'd 15:22 10:12 12:2 14:22 7:23 10:6 15:13 foregoing 25:7 help 5:5 16:25 17:21 19:17, 16:21, 24 19:20 form 10:17 HIGHWAY 1:14 17 22:14 23:24 effect 23:19 forward 12:2 13:11 honesty 5:23 25:10 efficient 6:6, 9 FOWLER 2:2, 5 Honor 4:21, 24 days 4:1, 16 17:1, eight 17:4, 7 FPR 1:17 25:14 5:13, 16, 17 11:19 4, 7, 10, 15 20:21 either 7:16 18:23 frankly 10:7 21:24 15:21 16:17 17:20 deal 6:6 18:24 ended 12:17 13:15 front 4:15 10:9 18:10 20:3 21:9 dealing 8:18 enter 13:5 14:1 12:6, 8 13:11, 13 22:8, 16 24:3 decide 19:2 22:9 entered 9:11 14:24 15:13, 14, 14, HONORABLE 1:11 entity 5:14 ORANGE REPORTING EFTA01164289  3 Honors 12:3 kind 4:7 8:4, 6 memorandums outstanding 3:13 17:4 20:25 11:22 <I> kinds 16:7 mention 8:25 mpact 19:25 22:12 knot 15:17 mentioned 9:12 <P> mportant 16:12 know 3:18 4:10, 18 mid 23:25, 25 24:5 P.A 2:2, 7 mpresslon 9:4 7:2 8:11, 14, 15, 23 money 6:22 15:4 PALM 1:1, 15 2:4, nadvertently 13:6 10:15, 17, 18, 20 morning 19:14 7, 8 nciude 18:7 15:17 16:8, 23 motion 9:8 11:21 parameters 8:17 ncluded 21:13 17:4 18:3 19:15 13:11 19:2, 13, 24 9:24 ncludes 11:1 21:20 22:8, 24 20:1, 13, 20 21:11, part 4:4 20:11 nciuding 3:12 23:3, 5, 17 21 22:5 23:6 parties 14:24 15:2 ncurred 6:3 knowing 22:13 motions 11:16, 20 party 13:2/, 23 ndividually 1:6, 6, 7 17:12, 18 18:25 pay 5:25 13:16 nformation 15:12 <L> 19:8, 12 21:14, 19 pending 7:21 17:12 16:13 19:20, 21 L.M 1:7 23:11 24:7, 8 people 13:2 14:22 nitial 8:21 Lakes 2:7 move 12:2 15:14 nitially 12:18, 22 Large 25:5 perceive 11:22 ntegrity 6:18 lawyer 5:12 <N> perfect 4:22 ntended 9:2 limits 16:17 necessary 18:4 period 8:16 16:25 nterest 7:14 13:19 list 23:6 need 7:23 9:18 17:21 nterests 14:23 Listen 3:5 11:17 14:9 15:20 permission 8:11 nterfere 12:10 live 9:16 16:6, 6, 18 19:4, 16 14:5 nterrogatories 11:4 logs 3:13 10:20 20:13 23:5 Phillips 2:3 nterrupt 6:20 long 9:5 10:11 needs 16:5 22:8 piecemeal 3:9 4:10 12:12 11:23 12:2 never 11:14 13:10 10:10 nvestors 15:4 look 4:19 8:17 new 6:23 11:24 PLACE 1:14 nvolved 5:22 15:11 9:23 14:4 16:6 17:10 20:24, 25 Plaintiff 1:2, 16 2:5 ssue 4:4 5:21 6:7, 19:5 20:19, 22 North 1:14 8:8 7 15:7 18:16 21:2 21:4, 9, 13, 2/ NOTARY 1:17 pleadings 8:16 22:19 looked 3:5 19:14 notes 25:8 21:25 22:1, 2, 19, 24 issued 9:15 12:19 looking 5:18 16:4 number 7:19 9:25 Point 2:3 9:18 issues 6:14 7:4, 5, 19:13 12:25 11:13 23:17 5, 16 11:1, 12, 17, looks 3:20 Ponzi 15:5 21 12:15 16:11 lost 15:4 <O> possession 18:9 19:18 lot 13:14 15:5 object 12:20 potential 15:7 19:20, 21 22:19 objections 9:25 practical 10:16 <J> 10:19 prepare 22:3 23:18 JA 20:5 <M> obviously 10:1 prepared 12:1, 24 JACK 2:5 mails 12:23 19:21 23:14 presented 7:16 JEFFREY 1:2 management 23:20 o'clock 23:22 20:15 22:10 jla 2:5 master 3:22 4:25 offered 5:1 presume 14:23 joint 13:4 15:11 5:3, 8 6:4 13:16 Oh 12:7 pretty 21:8 JOSEPH 2:2 14:7 18:8 Okay 3:3 9:21 prima 22:10 JR 2:2 material 10:5 20:16 17:19 18:13 20:16 prior 8:1 JSX 2:9 materials 18:5 23:13, 16 24:1 privilege 3:12 10:1, Judge 5:/, 23 6:17 20:7 21:10 old 12:15 13:8 2 11:7, 9 13:4 12:10 13:15, 25 matter 3:4 once 3:3 20:17, 17 14:1, 12, 22 15:21 17:23 18:4, matters 7:21 14:15 ones 23:6 privileged 3:13 19 MAXWELL 1:17 operating 9:3 9:25 10:20 14:16 judgment 20:7, 15, 25:4, 14 operative 8:9 15:6 20 mean 6:10 7:2 8:9 order 8:1, 12 9:11, privileges 10:3 JUDICIAL 1:1 23:23 12:9, 12 14:25 15 17:25 18:3, 7 11:5 13:6, 20 15:/, 16, 25 18:25 22:4 23:18 probably 19:6 <K> 21:22 originally 5:24 9:1 21:14 23:25 ought 16:25 19:22 problem 6:16 14:3 ORANGE REPORTING EFTA01164290  4 proceed 14:11 relates 14:17 21:2 SCAROLA 2:5, 7 14:7 18:8 18:14 relevant 10:5 21:12 4:22 5:16 6:15 spend 10:13 proceeding 15:3 relief 14:16 7:12 9:10 11:8, 16 spent 6:22 proceedings 13:2 relieve 5:5 12:7, 19 14:10 start 21:14 24:15 25:7 remember 21:10 15:20 16:16 17:9, started 19:13 proceeds 7:8 remove 9:9 15, 20 18:2, 22 State 25:5 produced 19:5 repeat 16:1 19:24 20:6 21:8 states 16:19 producing 14:15 repeatedly 5:1 22:5, 20 24:2, 10, 13 status 3:19 product 8:22 10:2 report 25:6 Scarola's 11:3 stenographic 25:8 11:25 REPORTED 1:17 scheduled 7:20 stenographically production 11:4 REPORTER 24:11 8:2 10:11, 23 23:7 25:6 Professional 25:4 25:5 scheme 15:5 stuff 3:13, 25 property 13:18 represent 15:4 scope 10:3 19:25 10:16 15:18 17:22 provisions 9:9 representation 22:12, 18 20:24 21:1 PUBLIC 1:17 15:11 SCOTT 1:6 subpoena 7:25 punitive 20:1 22:6, request 12:24 SEARCY 2:7 12:18 11, 21 23:12 requesting 18:8 searcylaw.com 2:9 subpoenas 10:18 pursuing 13:2 requests 7:22 11:4 second 6:21 18:17 put 4:7 18:2 24:4, 12:25 see 3:6 8:17 15:19 substantial 5:2 7 require 10:5 seeking 13:21 15:6 substantive 11:12 required 14:7 seeks 14:16 sufficient