EFTA00723203.pdf

NTH JUDICIAL CIRCUIT IN THE CIRCUIT COURT OF THE SEVENTEE IN AND FOR BROWARD COUNTY, FLORIDA CASE No. 09-059301 STUART A. ROSENFELDT, individually, and ROTHSTEIN ROSENFELDT, ADLER, P.A. a Florida corporation, Plaintiffs, -vs- SCOTT W. ROTHSTEIN, individually, Defendant. HEARING BEFORE THE HONORABLE JEFFREY STREITFELD Monday, November 23, 2009 2:06 p.m. - 2:43 p.m. 201 SE Sixth Street Room 970 Fort Lauderdale, Florida 33401 Reported By: Pamela J. Sullivan, RPR, FPR, CLR Prose Reporting Agency, Inc. PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 (561) 832-7500 c2f9b2c7-176c-4617-b2c9-49155e7a2065 Electronically signed by Pamela Sullivan (501-333-772-1552) EFTA00723203 I EFTA00723204  Page 4 Page 1 APPEARANCES 1 PROCEEDINGS 2 2 3 HERBERT sarnot ESQUIRE. TRUSTEE 5401 HammockDrin 3 THE COURT: Good afternoon. Cali Goblet, Florida 331564105 4 MR. STETTIN: Good afternoon, Judge. 305.663.3374 5 Herbert Stettin, the court-appointed receiver and 6 KENDALL COFFEY. ESQUIRE COFFEY BURLINGTON 6 chiefrestructuring officer in this. 7 Office ea the Grove, Penthouse 7 First thing I would like to report to the 2699 Sash Dayshcee Dive 8 Miami. Florida 33133 8 Court — and I know you had expressed interest in 9 this — is the United States Trustee appointed me 10 10 as the Chapter Eleven Trustee on late Friday JOSEPH S. GELLER ESQUIRE 11 STEVEN GEUERSHARDE.QUIll 11 afternoon. 31 18951 2981Monte 12 THE COURT: Well, we welcome you, sir. Susie 13 MR. STETTIN: May I give the Court a copy of 13 Avestan, Maids 33180 14 it? (Handing up to the Court.) 14 15 15 Procedurally what will happen next — CHARLES H.uarrmAtt ESQUIRE 16 THE COURT: I guess you wish you had been out 16 BERGER SINUERMAN, ATTORNEYSATLAW 350 Emu 1.4 OlasEkelevard 17 of town when I called you; huh? 17 Suite 1000 Fen Lauderdale. Mende 333301 18 MR. STETTIN: Procedurally, what will happen 18 19 next in the banlauptcy is that there is a hearing 19 20 tomorrow before Judge Ray. He is expected to enter 20 MICHAEL 3 PIXEESQUIRE, ESQUIRE BURMAN, OUTICN, LUTTIER & COIRMAN, LIP 21 an order approving that appointment And when I 21 303 Banyan Boulevard 22 post the bond, I will then start acting as the 22 Suiio 400 West Palm Bach. Maid', 33408 23 trustee — in fact, I think I am entitled to act as 24 the trustee at this point, after the appointment by 29 24 25 the United States Trustee. 25 (CONTINUED) Page 5 1 There were a series of orders entered by 1 APPEARANCES CONTINUED: 2 2 Judge Ray, as well. And I'll certainly be happy to 3 3 give you a copy of them. Essentially, he ordered 4 VALLIANT Ft SCHERER, ESQUIRE the appointment of a Chapter Eleven trustee. He JAMES D. SILVER, ESQUIRE 4 5 CONRAD &SCHERER, ATTORNEYS AT LAW 5 denied the objection of the United States Trustee 6333 South Federal highway 6 to my acting as the chiefrestructuring officer, 6 Fat Lauderdale, Florida 33301 saying it was moot because there was going to be a 7 7 8 trustee. 8 9 THE COURT: I think! have some of those. 9 WARREN R. TRAZENFELD, VIRE MR. STETTIN: He authorized me to make some WARREN R. TRAZENFELD, 10 10 3225 Aviation Avenue 11 payments, including the ones we had talked about, Suke 700 12 which are to pay the medical insurance for the 11 133.4741 13 employees. 12 14 THE COURT: Yeah, I have these ones. 13 15 MR. STETTIN: Good. You've got them. Thank Also Present: 16 14 you- Richard A. Pollack CPA 17 I have reported to Judge Ray, and if you will 15 18 give me a moment,Illreport to you essentially 16 19 where we are at this point. 17 18 20 THE COURT: I'll give you as much time as 19 21 you'd like. 20 22 MR. STETTIN: Jurisdiction, in fact, is in 21 22 23 the bankruptcy court over the assets of the debtor. 23 24 That's the Rothstein, Rosenfeldt and Adler firm. 24 25 This Court's continuingjurisdiction will be, 4 25 .61111•••••• 2 (Pages 2 to 5) (561) 832-7506 (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. n (501-333-772-1552) e2Mb2e7-170c.-4617-b2e94915587a2066 Electronically signed by Pamela Sulliva EFTA00723205  Page 6 Page 8 1 in my opinion over two things. The first will be 1 of a report to the Court. But I can tell you that 2 tomorrow at hearing we're going to ask whether or 2 it's an active discussion right now. And our view 3 not Judge Ray wants to have this Court fix the 3 of it is that there are some claims that should be 4 professional fees for myself and the accountants 4 brought in in this court. 5 that I had retained under your order for their 5 THE COURT: All right So you're going to 6 services during the receivership. It seems to me 6 wait and see, and then 7 it's appropriate to do that, but it's Judge Ray's 7 MR. STETTIN: It will work out over time. 8 call. If he does that, then this Court would set 8 THE COURT: — evaluate that on a 9 those fees, and they would be paid by me, as 9 case-by-case basis? 10 trustee of the bankruptcy estate. 10 MR. STETTIN: Yes, sir. 11 The second thing would be there's already at 11 THE COURT: And no particular timetable on 12 least one pending suit that I know is in this 12 that? 13 division, filed by Mr. Scherer. There probably 13 MIL STETTIN: Not a particular timetable, but 14 will be others that will come before you. As long 14 it will be fairly soon. There are so many 15 as they don't name the debtor and they don't 15 investigations going on now from the authorities, 16 involve the assets, which are only those of the 16 as well as the bankruptcy estate, as well as 17 debtor, then it's entirely appropriate for this 17 others. I wish I could be more specific, but I 18 Court to continue its jurisdiction over those 18 think it would be premature to start speaking about 19 cases. And, in fact, there may be some instances 19 them now. 20 where we would welcome that, as well. We think 20 I can tell you that we are — and this is 21 it's appropriate to do that 21 important — we are heavily involved in making sure 22 THE COURT: Well, that's really the 22 that clients' rights of the firm are being 23 fundamental issue, because the pending lawsuits, 23 protected. 24 including the recently filed Tome (phonetic) by 24 We met with the Florida Bar. They're in full 25 Mr. Scherer, does name the firm as a Defendant. 25 agreement with what we're doing, and that would be Page 7 Page 9 1 MR. STETTIN: It does not. 1 to ensure that the files taken by lawyers who were 2 THE COURT: It does not? 2 formerly with the firm and now want to take those 3 MR. STETTIN: Does not. He was careful to do 3 files with them, we're making sure that they get 4 that 4 copies of those files. We're making sure that the 5 THE COURT: All right 5 lawyers' calenders are made available to them. 6 MR. STETTIN: One of the orders that you'll 6 We're also making sure that, to the extent we 7 have there is an order enforcing the stay imposed 7 can, if there's any money owed the firm, we're 8 by Section 362 of the Bankruptcy Code against any 8 trying to make sure that, when we turn the files 9 actions taken against the debtor or its property. 9 over, we can have some arrangement as to payment. 10 THE COURT: Okay. 10 Those clients whose lawyers are not 11 MR. STETTIN: Mr. Scherer was very careful 11 continuing, we're making arrangements to notify 12 not to name the debtor. 12 them, as I think the law requires, of their option 13 THE COURT: Okay. Well, there are others 13 to hire another lawyer to represent them, and it's 14 that do. 14 in their interest to do that. 15 MR. STETTIN: There are. They will be 15 We're also making sure that any clients who 16 stayed, as against the debtor. But if they name 16 are owed money by the fum, and there are a number, 17 other Defendants who are not in bankruptcy, there's 17 are given the opportunity to file a claim in the 18 is no stay. 18 bankruptcy estate, so that they can protect their 19 THE COURT: Well, have you — I assume it's 19 interests. 20 premature, but have you set a time when you are 20 THE COURT: Well, my understanding is that at 21 going to report to the Court in the bankruptcy 21 this point all of those issues are no longer within 22 whether or not adversary claims against the law 22 my jurisdiction. 23 firm will or will not be allowed to proceed in 23 MR. STETTIN: I think you're right. 24 state court? 24 THE COURT: The issue of the continuation of 25 MR. STETTIN: I'm not sure. It's the subject 25 the law firm, how, when and under what 3 (Pages 6 to 9) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501-353-772-1552) c2f9b2c7.176c -4617-b2c9-49155e7a2065 EFTA00723206  Page 10 Page 12 1 circumstances it should be dissolved 1 Florida political committee as CCE, known as 2 MR. STETTIN: It won't be dissolved. 2 Floridians for a Stronger Tomorrow. 3 THE COURT: — will be done by Judge Ray. 3 THE COURT: Right. 4 MR. STETTIN: Essentially, yes. 4 MR. JOSEPH GELLER: That entity received a 5 THE COURT: What do you mean, essentially? 5 $50,000 personal contribution from Mr. Rothstein, 6 MR. STETTIN: Well, whether or not the firm 6 was not from the firm. But we have sought this 7 should be dissolved may be a decision that will be 7 Court's permission to deposit those funds by way 8 made when, later in the case, whether or not a plan 8 of — 9 ofreorganization would be proposed. 9 THE COURT: Not appropriate. It's not 10 THE COURT: But all of that is no longer 10 appropriate. 11 within this cowl. 11 MR. PIKE: I'm sorry, Judge. 12 MIL STETTIN: You're right. 12 THE COURT: If you need time to chat, I'll 13 THE COURT: The only aspects of that, really, 13 certainly give you that chance. 14 that remain are if Judge Ray should decide 14 Well, okay. So what is the position of the 15 accordingly, I will make a determination as to what 15 law firm and receiver now, the trustee? 16 you should be paid during the time that you, the 16 MR. JOSEPH GELLER: Well, fillet them speak 17 CPA firm and Eager Singerman were working under 17 for themselves, Judge. Just to say that we filed a 18 this Court's jurisdiction. At that point, I assume 18 complaint and also a motion for interpleader. 19 you're going to voluntarily dismiss this action. 19 THE COURT: Uh-huh. 20 Or do you want to stay? 20 MR. JOSEPH GELLER: Who those funds properly 21 MR. STETTIN: I had not really considered the 21 should go to at this point is certainly beyond our 22 prospect ofdismissing the action. it's probably 22 decision-making ability. It's our belief that 23 correct to w that. I would like the opportunity 23 these monies should be subject to the jurisdiction 24 to talk to the lawyers about it first. 24 of this Court by being placed in the registry of 25 THE COURT: Well, at least you'll be stayed. 25 the Court And at that point the committee would Page 11 Page 13 1 MR. STETTIN: Yeah. Yes. Oh, it is stayed 1 be relieved of further responsibility. 2 now. 2 THE COURT: I need your papas. I have no 3 THE COURT: Well, that I understand. But I 3 motion, notice ofhearing. 4 mean formally stayed. 4 MR. JOSEPH GELLER: Okay. Your motion and — 5 MR. STETTIN: Yes. S okay. I don't believe — lame see If a 6 THE COURT: Other than unless the bankruptcy 6 copy of the notice ofhearing, as well. I know it 7 court should dismiss for some reason, in which case 7 was furnished to your office. Yes, I do. 8 this could come back. I think this case should be 8 Now, it may be the case, Judge, from what I 9 dismissed, truly. 9 heard, because when we filed there was no 10 MR. STETTIN: I understand. And ill make 10 bankruptcy, that having named RRA in an abundance 11 that point when we speak to my counsel. 11 ofcaution, which is what we did, us 811 impediment 12 THE COURT: So I have other parties here. Is 12 to our going forward. If necessary, we could — I 13 there someone who wishes to be heard on any motion 13 don't know that they have any rights to these 14 this afternoon? 14 funds. And if the Court deemed it necessary, we 15 MR. JOSEPH GELLER: Yes, Your Honor. 15 could dismiss them. 16 Joseph Geller ofOreenspoon, Marder. 16 There is -- again, I don't want to speak for 17 THE COURT: Yes, sir. 17 any of the myriad of wonderful lawyers — 18 MR. JOSEPH GELLER: Accompanied today by my 18 THE COURT: Well, have you spoken to them? 19 brother, Steven Geller. 19 MR. JOSEPH GELLER: 1had a brief 20 We have filed on behalf — 20 conversation. Apparently, there is some interest 21 THE COURT: Younger or older? 21 in having the funds placed other than in the 22 MR. JOSEPH GELLER: That's my younger 22 registry of the court, to avoid the apparently not 23 brother. 23 inconsiderable fee for a deposit into the registry 24 THE COURT: Okay. 24 ofthe court, though I believe Your Honor has the 25 MR. JOSEPH GELLER: We filed on behalf of a 25 authority to waive that fee in a case like this, 4 (Pages 10 to 13) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 c2f9b2c7-176c -4617-b2c9-49155e7a2065 Electronically signed by Pamela Sullivan (501.333-772-1552) EFTA00723207  Page 14 Page 16 1 where it is in the public interest and not private 1 occurred, when your esteemed, much younger 2 interest. 2 brother — 3 We are waiving our costs and fees, we've 3 MR. JOSEPH GELLER: Much younger. 4 waived reimbursement for the filing fee, we've 4 THE COURT: -- brought this to my attention 5 waived reimbursement for any costs or fees through a letter, I immediately faxed that to 6 associated with this. That's being borne by the 6 Mr. Coffey — my extremely gifted assistant fax'd 7 political committee in an effort to maximize the 7 that to the parties in this case, basically saying, 8 amount of recovery that is available to whoever it Fm bringing this to your attention. And I think I 9 may be ultimately determined is entitled to these 9 advised him in the response letter that if you 10 monies. 10 believe — because the letter suggested that an 11 I believe Your Honor has the authority in 11 interpleader might be filed — if you think that is 12 such a case to waive the fee for a deposit, whether 12 appropriate, proceed to file it 13 some alternative private trust account, as I 13 And I had hoped that between then and now 14 believe you'll hear is being considered, would 14 there had been every effort made to get to the 15 save the other purpose my client seeks here, which 15 bottom of where that money came from and come up 16 is to be relieved of any and all further 16 with a practical resolution of how to address it, 17 responsibility whatsoever for the disposition of 17 since Mr. Rothstein so far has not been asserting 18 these funds, as opposed to malting a private 18 any interest in any court proceeding, to my 19 agreement not ordered by the Cowl to have the 19 knowledge, either in this building or the one a 20 funds held in some other fashion. I'll leave it to 20 couple of blocks up the street. 21 Your Honor's wisdom and that of the very wise 21 So ifs a lot of - a lot of people are 22 lawyers before us. 22 spending a lot of time and money for not a lot of 23 Thank you, sir. 23 reasons. 24 MR. STETTIN: May I respond? 24 MR. JOSEPH GELLER: if I may respond, 25 The conversation that he referred to is one 25 Your Honor, I•did have the opportunity -- Page 15 Page 17 1 briefly before you came into the courtroom. I 1 MR. STETTIN: If I might, first? 2 suggested to him that the appropriate place for 2 MR. JOSEPH GELLER: Of course, Mr. Stettin. 3 that money would be in a separate segregated 3 Always. 4 account that I would hold as trustee. It would be 4 MR. STETTIN: Referring to what you said 5 available if anyone asserted a claim against it. 5 before, if we choose to dismiss the case, we may 6 And 1 don't understand Mr. Rothstein to 6 have this orphan account there, with no case 7 assert a claim against it. In fact, our view is 7 pending, another reason why it should be put in a 8 very simple: That money came from the firm; it 8 proceeding where it is safe, is available to anyone 9 didn't come from Mr. Rothstein. He was simply the 9 who asserts a claim. 10 fellow who wrote the check. 10 THE COURT: Well, this is a separate action. 11 And perfectly happy to hold those funds 11. This actually 12 in escrow while we continue our efforts to recover 12 MR. STETTIN: Oh, you filed a new suit? 13 . back all of the money. 13 THE COURT: Excuse me. 09-62619 is a 14 THE COURT: Have you confirmed that it was a 14 separately-filed suit assigned to this division, 15 firm account that those funds came from? 15 Floridians for a Stronger Tomorrow. And one could 16 MR. STETTIN: We don't know that yet. • 16 hardly argue with that. 17 MR. JOSEPH GELLER: it was a personal check 17 MR. STETTIN: I misunderstood. 18 from Mr. Rothstein. 18 THE COURT: Scott Rothstein of Rosenfeldt, 19 THE COURT: Well, okay. But on what bank 19 Rothstein and Adler. 20 account, is the question? Do you have a copy of 20 So it's been assigned to me because of the 21 the check? 21 administrative order put together in a really quick 22 MR. JOSEPH GELLER: I don't believe I have 22 method. So whether or not the receivership action 23 one here. 23 is dismissed will not affect this. 24 MR. STETTIN: Neither do we, Your Honor. 24 But my concerns are: One, you have named the 25 THE COURT: Truly, so we understand what 25 law firm as a defendant, so the stay and relief 5 (Pages 14 to 17 (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501-333-772-1552) c2f9b2c7-176c-4617-b2c9-49155e7a2065 EFTA00723208  Page 18 Page 20 1 does affect my jurisdiction to proceed. And right 1 being dragged into future litigation. It is at 2 now it remains to be determined whether or not 2 this point, having renounced any claim whatsoever 3 Mr. Rothstein will be competing with the law firm 3 to the funds, or even, as I said, the costs or fees 4 for that money. So the suggestion that you put it 4 related to the interpleader action, it is a true 5 in a segregated account makes sense. 5 stakeholder. 6 Now, whether or not you agree to do it under 6 And if some aggrieved party were to come 7 Mr. Stettin's authority or just notifying me what along later and name Floridians for a Stronger 8 you've done, that you're holding the money, which 8 Tomorrow and attack its private agreement to place 9 you're free to. But I don't know, even under the 9 the fiinds into some type of escrow or trust 10 best of circumstances and the best relationship 10 account, we don't wish to be in a position what we 11 with Mr. Foreman, that I have the authority to 11 have to defend that. 12 waive his fee. Arid that doesn't exist currently -- 12 THE COURT: Okay. So, first, have you served 13 certainly monetarily. So... 13 Mr. Rothstein with this? 14 MR. JOSEPH GELLER: If I might respond, 14 MR. JOSEPH GELLER: We served the documents 15 Your Honor? 15 only upon counsel in the sense this was an 16 THE COURT: Yes. 16 emergency hearing. 17 MR. JOSEPH GELLER: I did have the 17 THE COURT: Did he accept service? 18 opportunity, though I've not spoken with 18 MR. JOSEPH GELLER: We have not spoken 19 Mr. Stettin on this matter, having spoken with him 19 directly with Mr. Nurik and have not — 20 numerous times about numerous other matters, to 20 THE COURT: But you delivered copies of these 21 speak either with him or with his counsel 21 papers with a notice bearing upon Mr. Nurik? 22 Mr. Lichtman. I did have the opportunity to speak 22 MR. JOSEPH GELLER: They were served by fax 23 with Mr. Coffey on Friday. 23 and by e-mail, Your Honor. 24 !can, if it would assist the Coun, proffer 24 THE COURT: So here's what Fm going to do: 25 to the Court and, if necessary, by way of 25 As far as I'm concerned, the safest way - and I Page 19 Page 21 testimony, though a copy of the check is not 1 understand it will reduce the sum ultimately going 2 attached, it is manifestly the case that the check 2 back to whoever is entitled to it -- but the only 3 was received from -- at least the check itself bore 3 safe way to do it is to put the money in the court 4 the name Scott Rothstein, and not the name of any 4 registry. Now, you can ask the clerk to waive the 5 corporate or other entity. The source of the funds 5 fee. 6 to Mr. Rothstein, of course, is well beyond our 6 MR. JOSEPH GELLER: I'll do that. 7 purview. 7 THE COURT: And if Mr. Foreman is prepared to 8 Were it necessary, as I said, to dismiss on 8 do that — certainly given the name of the 9 the spot, instanter, the addition of the law firm 9 Plaintiff, l'm sure he'll be motivated to do so — 10 as a party Defendant, I would certainly be prepared 10 but that would be his decision. I will grant that 11 to do that. They were added only in an abundance 11 release. 12 of caution. And, certainly, they would have the 12 MR. JOSEPH GELLER: Thank you. 13 right to claim against money in the registry of the 13 THE COURT: So submit the new order, and then 14 court. 14 you can deposit the money in the court registry. 15 By saying that, I do not wish to indicate to 15 And if it turns out that the law firm wishes to 16 Your Honor that the notion that the funds could be 16 assert a claim against it, I'll conduct a hearing 17 put in some agreed-upon trust account is 17 and I'll resolve it. 18 objectionable to us. The notion that it would be 18 MR. JOSEPH GELLER: Thank you. We'll 19 held by Mr. Stettin is equally unobjectionable to 19 submit-- circulate the order. 20 us, provided that it would be by not private 20 THE COURT: Thank you. 21 agreement on our part, but by order of Your Honor 21 MR. PIKE: Thank you. 22 in the nature of an interpleader. Because 22 THE COURT: What else needs to be addressed 23 Floridians for a Stronger Tomorrow, which has a 23 here? 24 mission to try to improve the well-being of the 24 MR. PIKE: Good morning, Judge. My name is 25 public of the State of Florida is not interested in 25 Michael Pike, on behalf of Jeffrey Epstein. May I 6 (Pages 18 to 21) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501-333-772-1552) e2f9b2c7-1760-4617-b2c9-49155e7a206.9 EFTA00723209  tct, 22 Page 24 1 approach? 1 opinion, in the Palm Beach County suits? 2 THE COURT: Yes. 2 MR. PIKE: In the Federal actions, as well as 3 MR. PIKE: Judge, we're here today on a 3 in the Palm Beach County suit. 4 motion to intervene. And with the Honorable 4 MR. STETTiN: Right. Right And one of the 5 Stettin being appointed as the trustee, I'm not 5 orders that you've seen from Judge Ray invokes the 6 quite sure what's going to happen with the motion 6 stay against any discovery against me in those 7 to intervene today. 7 suits, as well. 8 Ifs my understanding that in Case Number 8 We have an independent obligation to preserve 9 09-059301, Stuart Rosenfeldt, RA, versus 9 and protect records. I don't think this Court has 10 Scott W. Rothstein, that the Defendant in that 10 any jurisdiction — 11 action is Mr. Rothstein, and not the firm. So i 11. THE COURT: I know I don't i don't. 12 don't think that the — any stay would apply in 12 MR. PiKE: Okay. So as long as Your Honor -- 13 this instance to this case. 13 THE COURT: So you need to seek relief before 14 i don't know what Mr. Stettin's decision will 14 Judge Ray to the extent you think it necessary, and 15 be relative to the case that I just referenced, 15 I don't know that you're going to have a problem. I 16 whether or not that case is going to be dismissed 16 mean, have you made any effort -- not that he 17 or -- Rosenfeldt is not here today. I don't know 17 hasn't been a busy guy. 18 if he has a lawyer present to represent that that 18 MR. PIKE: We have. I — 19 case is going to be dismissed or remain alive. 19 THE COURT: I have a feeling that this is 20 The long and the short is that we filed a 20 going to be a nonadversarial relationship, as far 21 motion to intervene in order to preserve evidence. 21. as preserving that evidence. 22 and only evidence relative to the cases that 22 MR. PIKE: Right. We've -- I've already sent 23 Mr. Rothstein allegedly offered for sale and 23 e-mails and left messages with Mr. Lichtman. And 24 structured settlement interests. 24 we have an order of the court by — Judge Marra 25 THE COURT: Well, I think — I think at this 25 entered an order that we need to meet and confirm, Page 23 Page 25 1 point i have no ability to entertain this motion 1. but that order was entered prior to Mr. Stettin 2 today. Because the only -- right now, the only 2 being appointed last week, so... 3 work for me to do is to wind up what had already 3 711E COURT: All right. 4 been done, if Judge Ray allows me to do that. 4 MR. LICHTMAN: Your Honor, we repie:,ented to 5 So this relates to some of the aspects of the 5 the Federal Court and the state court that of 6 lawsuit filed by Mr. Scherer, is that correct? 6 course we're preserving evidence. 7 MR. PIECE: No. 7 THE COURT: Okay. 8 THE COURT: It's entirely separate? 8 All right. Is there anyone else that wishes 9 MR. PIKE: This is an entirely separate 9 to be heard? No. 10 action that was filed by Stuart Rosenfeld% and 10 So what I'm trying to get a handle on -- and 11 Rothstein, Rosenfeldt and Adler. This has nothing 11 this is apparently not going to happen today - is, 12 to do with Mr. Scherer's lawsuit that was file d,1 12 ultimately, what is going to come here beyond the 13 believe, last week, which is an entirely different 13 suit filed by Mr. Scherer. 14 case. 14 There are pending matters against at least 15 /vfft STETTIN: May I ask counsel: is this the 15 one of the banks, GE Bank, where I don't believe 16 suit that's pending in — 16 the law firm is named, but Pm not sure. There 17 THE COURT: Palm Beach County. 17 obviously is going to be a lot of ancillary 18 MR. STETTIN: — Palm Beach County? 18 litigation against parties other than the firm. 19 MR. PIKE: No. This is a suit that is 19 So have there been conversations with other 20 rending in the Circuit Court of the 17th Judicial 20 counsel representing potential Plaintiffs or actual 21 Circuit. 21 Plaintiffs as to what their intentions are and how 22 MR. STETTIN: No, not the instant suit that's 22 they intend to proceed? 23 before this Court. The reasons for your . 23 MR. STETiIN: The answer is, yes, we've 24' intervention are to preserve and protect 24 spoken to a number of the lawyers who represent 25 information, records that are necessary, in your 25 Plaintiffs and potential Plaintiffs. 7 (Pages 22 to 25) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501-333-772-1552) c2f9b2c7-176c-4617-b2c9-49155e7a2065 EFTA00723210  Page 26 Page 28 1 THE COURT: And? 1 everybody to consider this court as the place for 2 MR. STETTIN: They're not ready yet to come 2 it to be. 3 to a resolution. They're still in discussion. 3 So, for sure, for our hundred million that 4 Its pretty early in the case, Judge. 4 I'm speaking for now, that we want to be here 5 THE COURT: I know. I know. Because my — 5 before you, and we'd love for you to start 6 this is my concern: When dealing with tobacco, I 6 scheduling it as soon as you can. 7 had some forewarning about what would be coming. 7 THE COURT: Well, this is what I intend to 8 So I set up a structure ahead of time so I knew I 8 do. I'm going to set aside, for as long as is 9 was setting aside a certain amount of time each 9 necessary, that lime. We will probably end up 10 month to address initial case management, establish 10 putting some type of informative link together on 11 case management orders with regard to issues of 11 the website, as we had done with tobacco. Because 12 common interest. 12 I see at least the possibility there are going to 13 I'll give you a chance to talk, Chuck. 13 be a lot of related motions, a lot of related 14 MR. LICHTMAN: Okay. 14 discovery, a lot of related motions as it addresses 15 THE COURT: Hold on. Thanks. 15 that discovery. There are probably going to be a 16 So if it's premature me doing that now, 16 lot of competing Plaintiffs. So the more we can 17 because It may not be necessary, and that's fine, 17 coordinate and work cooperatively, the better off 18 but I would rather — if I need to be doing that 18 everyone will be, starting with me. Always very 19 next year, I'd rather put that in motion this year, 19 important. 20 and not come back having a lot of time already 20 So theft what we're looking at. Actually, 21 filled up and saying, now what do I do. 21. lets see, the first — it's complicated, because 22 So my thought was, if it's going to be 22 the fast Friday in January is a holiday. It's 23 necessary to establish a block of time monthly to 23 January I. 24 address any cases assigned to this division that 24 Were off the record. 25 relate to this block, and my initial thought was to 25 (Discussion held off the record.) Page 27 Page 29 1 do that on the third Friday of each month in the 1 THE COURT: Back on the record. 2 afternoon. Apparently, that doesn't meet with a 2 1 got an approval from my assistant So 3 great deal of support (tom my judicial assistant, 3 because of the unique nature of Friday — the first 4 but what else is new. So... 4 Friday being theist of January, a court holiday, 5 Yes, Mr. Scherer? 5 we're looking at doing this the fourth Friday in 6 MR. SCHERER: Thank you, Your Honor. 6 January, which is the 22nd of January. 7 I represent a hundred million dollars worth 7 Let's see. No, I'm going to reverse myself, 8 of victim investors who have filed an action 8 because every other — I'd like it to be uniform. 9 against GE Bank and certain other Defendants. We 9 So I'll just give up a half a trial day. It will 10 have spoken and have worked with your choice of 10 be the third Friday of each month, which the first 11 receiver and supported him at the bankruptcy 11 such conference would be January the 15th, 2010, at 12 hearing strongly that he be made the trustee in the 12 1:30 in this courtroom. And then February would be 13 case. 13 the 19th, March the 19th, and then April the 16th. 14 It is our view that the state court is the 14 And well take it from there to see what's 15 appropriate place for all but the 15 happening or whether we need to continue. And it 16 bankruptcy-related claims. And we're going — if 16 will be to address all pending motions. 17 we don't have Mr. Stettin's agreement and the 17 Now, if there's a motion that needs to be 18 committees there in bankruptcy, we'll fight like 18 heard before then and I have a feeling 19 heck to keep them here. But I don't think that's 19 Mr. Trazehfeld is going to tell me that — I will 20 going to haPPea 20 hear motions outside the scheduled time on an 21 I think Your Honot's idea about reserving 21 as-needed basis. But it will be my goal to, 22 time is a good one. My view is that I believe 22 wherever possible, structure a coordinated case 23 there to be 500 million dollars worth of swindled 23 management. 24 investors that are going to want to probably be in 24 Yes, sir. 25 a lawsuit somewhere. And 1 believe — Pm urging 25 MR. TRAZENFELD: Just very briefly, Judge. VvaRWIalm.A.• vuo.c.,1" 8 (Pages 26 to 29) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501-333.772-1552) c2f9b2c7-176c-4617-b2c9.49155e7a2065 EFTA00723211  Page 30 Page 32 1 Warren Trazenfeld. My claim is only against the 1 Mr. Coffey, is there anything you wanted help 2 law firm presently, and only deals with a 2 with? 3 malpractice claim. So it's — I'm in bankruptcy 3 MR. COFFEY: No, Your Honor. But I do really 4 court right now. 4 want to thank you for all the emergency hearings. 5 But Judge Stettin, of course, would have the 5 I know it was very disruptive. I don't need to 6 option of allowing me to come back to state court, 6 tell you what a wonderful staff you've had. It has 7 as long as they only deal within the malpractice 7 made a very, very difficult situation much easier. 8 policy. So I'm just saying there may be some 8 And I just want to thank you for your assistance. 9 latecomers to those meetings, because I don't know 9 THE COURT: Well, thank, sir. miss you, 10 when Judge Stettin and his counsel will make that 10 too. 11 decision. So people such as myself or others may 11 Yes, Mr. Lichtman. 12 only start attending those in the second or third 12 MR. LICHTMAN: Because I know you don't like 13 month, which may be problematic in terms of the 13 surprises, I think that there's at least a chance 14 goals you're seeking. And I just mention that in 14 that you will have a numbe