EFTA02725054.pdf

IN THE CIRCUIT COURT OF THE 17TH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA Case No. 09-062943 (07) RAZORBACK FUNDING, LLC, et al., Plaintiffs, vs. SCOTT W. ROTHSTEIN, et al., Defendants. DAY 9 - MORNING SESSION DEPOSITION OF SCOTT W. ROTHSTEIN DATE TAKEN: December 22, 2011 TIME: 8:37 a.m. - 12:00 p.m. PLACE: James Lawrence King Federal Justice Building 99 N.E. Fourth Street Courtroom 11-3 Miami, Florida 33128 Examination of the witness taken before: Michele L. Savoy, Registered Professional Reporter United Reporting, Inc. 1218 S.E. Third Avenue Fort Lauderdale, Florida 33316 United R nc. 21a 89Thb•falf -49aa-8308 -21d465585ba 5 EFTA_R1_02212490 EFTA02725054  Page 241_ 1 A I masterminded -- the way you're asking it, 2 yes, I utilized phony lawsuits to continue to perpetrate 3 the fraud. 4 Q Phony court orders? 5 A Yes, ma'am. 6 Q Phony settlement agreements? 7 A Yes, ma'am. 8 Q Phony promissory notes? 9 A Yes, ma'am. 10 Q Forged emails? 11 A Yes, ma'am. 12 Q Phony case file documents? 13 A Yes, ma'am. 14 Q Phony flight manifests? 15 A No, we didn't phony up flight manifests. We 16 used -- 17 Q You didn't phony up a flight manifest where 18 you added Bill Clinton and Prince Andrew and young 19 girls' names to a Jeffrey Epstein flight manifest for 20 purposes of showing perspective investors how the 21 settlement system worked and why important people might 22 want confidentiality in exchange for large sums of money 23 to be paid to the plaintiff? 24 A My best recollection is, is we used -- I think 25 I testified to this yesterday or the day before -- we United Re ortin , Inc. 21a897ab-f9ft-49aa-13308-21d466586ba5 EFTA_R1_02212491 EFTA02725055  Page 2412 1 used real flight manifests during that meeting with 2 the -- Mr. Scherer's clients. And I told them about 3 fake flight manifests. I don't recall that we created 4 one. If you have one, you can show it to me, that would 5 refresh my recollection, but I actually don't recall 6 that being a document that I created. 7 Q Phony bank websites? 8 A Yes. 9 Q Phony bank statements? 10 A Yes. Screen shots. 11 Q Phony opinion letters? 12 A Yes. 13 Q Phony audit letters? 14 A Yes. 15 Q Fake legal bills? 16 A Yes. 17 Q Phony court case bonds? 18 A Yes. 19 Q Fake law enforcement investigations? 20 A Yes. 21 Q Phony attorney's fees statements? 22 A Yes. 23 Q Fictitious loans? 24 A Yes. 25 Q And, of course, being a successful con means United Reporting, Inc. 21a897ab•1911-69aa-8308.21d466586ba6 EFTA_R1_02212492 EFTA02725056  Page 2461 1 varied. 2 BY MR. RABIN: 3 Q Okay. I want to break these down into groups 4 and try and get your best recollection as to what you 5 told different people in order to engage them in your 6 scheme. And I want to start first with the people in 7 your law firm. Okay? 8 A Sure. 9 Q All right. Russell Adler, you generally 10 described the fact that he helped you round up other 11 lawyers to provide false verifications that they were 12 either sending business or cases to your firm, correct? 13 A That is one of the things that he did, yes. 14 Q And what was the what was it that you told 15 him was the reason why you needed those lawyers? 16 First of all, was it honest or a lie and what 17 was the -- 18 A No, it was honest. 19 Q Okay. And what -- it was honest, what you 20 told him? 23 A I told Mr. Adler -- to the best of my 22 recollection, I told him that we had the hedge funds 23 coming in town and that in order to convince them to 24 continue to do business with us, that I needed these 25 people to lie about the number of cases we had. United Re ortin Inc. 212897ab-M-49a.41308-21d465585ba5 EFTA_R1_02212493 EFTA02725057  Page 2462 1 Q So, essentially, what you're saying is, you 2 honestly told him aspects of the scheme or he already 3 knew aspects of the scheme and you told him the honest 4 purpose for which you were lining up these lawyers? Is 5 that what you're saying? 6 MR. SCHERER: Object to form. 7 A I don't understand the question but you £; have -- 9 BY MR. RABIN: 10 Q Let me rephrase it. 11 MR. SCHERER: Objection to form. 12 BY MR. RABIN: 13 Q I don't want you to answer a question you 14 don't understand. 15 Is your -- what you just summarized or just 16 testified to is that you told Adler that you needed 17 these lawyers to provide false information? 18 A I told Adler -- yes, I told Adler I needed 19 these lawyers to lie. 20 Q Okay. David Boden, generally what was David 21 Boden's role? 22 A He was my general counsel, and he ran a 23 sub-Ponzi scheme, as we've come to call it. 24 Q All right. And what was the lie that you told 25 or the honest information that you gave David Boden in United Re ortin Inc. 21anlab-raff-49aa-8308-21(14116586ba6 EFTA_R1_02212494 EFTA02725058  Page 250 1 moment, please. 2 I think -- 3 MR. SCHERER: I'm going to object to the 4 question, Sam, unless you can ask the witness to identify who saw him get the cash so he can have a complete answer, since I can't have any more examination. MR. RABIN: I'm happy to ask that 0 question. 10 MR. SCHERER: Thank you. 11 3Y MR. RABIN: 12 Q Did you hear Mr. Scherer's question? 13 A I'm sorry, no. 14 Q Who was the person that witnessed you obtain 15 the cash that you claim that you gave to Mr. Weintraub? 16 MR. LAVECCHIO: Objection -- 17 MR. RABIN: So much for your question. 18 MR. SCHERER: Take all the joy out of 19 this. 20 MR. LICHTMAN: That seemed like a perfect 21 way to end the transcript. 22 BY MR. RABIN: 23 Q One other area, just real fast, two questions. 24 You remember the Kroll project you discussed with Ken 25 Jenne? United Re ortin Inc. 21a897ab491(49sa-8308-21d465586ba5 EFTA_R1_02212495 EFTA02725059  Page 2509 1 A I don't. 2 Q All right. Did Ken Jenne ever propose to you 3 starting a business similar to Kroll's? 4 A Yes. 5 Q , And what he -- what -- explain that to us, 6 what he was purposing in that. 7 A We were hiring a lot of retired law 8 enforcement at the time, former ABT agents, FBI agents, 9 IRS agents, and he wanted to put together something to 10 rival Kroll. 11 Q And did that go beyond any discussions? 12 A Other than him and I hiring people to kind of 13 get it started up, no. 14 Q And did Kan Jenne have any role in your 15 illegal activities? 16 A No, sir. 17 Q Other than, perhaps, that one occasion where 18 he carried boxes -- the Epstein boxes into your office 19 that people are claiming that he did? 20 A No, sir. He had no involvement. 21 MR. RABIN: I'm going to cede the balance 22 of my time to Mr. Rasco. 23 24 25 United Re rting, Inc. 21a897ab-M-49aa-8,308-21d46668Sba6 EFTA_R1_02212496 EFTA02725060