DS9 Document EFTA01164263

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 IN THE CIRCUIT COURT OF THE 15th 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, Defendants. HEARING HAD BEFORE: THE HONORABLE DAVID F. CROW DATE TAKEN: APRIL 1, 2011 TIME: 9:03 A.M. - 9:25 A.M. PLACE: 205 North DIXIE HIGHWAY COURTROOM 9D WEST PALM BEACH, FL 33401 TAKEN BY: THE PLAINTIFF REPORTED BY: ROBYN MAXWELL, RPR, FPR, CLR, NOTARY PUBLIC, REALTIME SYSTEMS ADMINISTRATOR ORANGE REPORTING EFTA01164263 2 1 2 APPEARANCE S: JOSEPH L. ACKERMAN, JR., ESQUIRE OF: FOWLER, WHITE, BURNETT, P.A. 3 901 Phillips Point West 4 777 South Flagler Drive West Palm Beach, FL 33401 5 6 ON BEHALF F THE PLAINTIFF JACK SCAROLA, ESQUIRE 7 OF: SEARCY, DENNEY, SCAROLA, BARNHART & SHIPLEY, P.A. 8 2139 Palm Beach Lakes Boulevard We Palm Beach FL 33409 10 ON BEHALF OF THE DEFENDANT 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ORANGE REPORTING EFTA01164264 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PROCEEDINGS THE COURT: Okay. We're here once again on April 1st on the Epstein versus Rothstein matter. Listen, guys, I have looked at this thing and I've got a suggestion and I want to see what you all think about it. I don't want to be ruling on these things on a piecemeal basis. It seems to me that to do so is, really, I don't get the full flavor of it. So what I'd like to do here is to take a whole day and have all of this, including all the privilege and stuff that are outstanding, privileged logs, whether they're down at the Trustee's or everywhere else, these questions on depositions, questions you asked Mr. Epstein on deposition all at one time. And I can do it -- and I know we're going to have a status conference -- in fact, it's set for it looks like April 15th. I want to set aside a whole day to do this if you're not willing to go to a special master. And I understand you're not willing to do that. It's up to you guys on that. But I just really don't want to be ruling on this stuff. We had three of them here in the ORANGE REPORTING EFTA01164265 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 last couple of days and -- the one yesterday and the one today. I really have to find out because I think part of the issue here is what I allow for one side is going to be -- what's good for the goose is good for the gander I guess is the best way to put it. I think it all kind of dovetails together. And I'm afraid if I'm going to be doing this piecemeal, you know, every couple weeks or something like that, it's going to get really -- get really confusing to me. I just don't have the ability to compartmentalize like that. And that's what I'd like to do it. If you can just get it all in front of me, let me sit down, if it takes two days even to get through it, do it like that and have it all together and get it all -- know what I'm talking about, look at the documents we're talking about. MR. ACKERMAN: That is fine with me, Your Honor. MR. SCAROLA: Makes perfect sense to us. Just so that the record is clear, Your Honor said you have not agreed to a special master. And I want to reflect again that we have ORANGE REPORTING EFTA01164266 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 repeatedly offered to have Judge Carney, who has done substantial work on this, be appointed as special master by this Court. He has volunteered to do that work. We are in agreement to help to relieve the Court of some of that burden to have him to continue -- to have him continue to do that work, appointed as a special master in this case. There has been a consistent refusal to do that, but I want to be clear that we have agreed. Thank you, sir. THE COURT: Again, I guess, as a lawyer -- MR. ACKERMAN: Your Honor -- THE COURT: As an entity we together have not agreed. MR. SCAROLA: Your Honor, we're -- MR. ACKERMAN: Your Honor, we're still -- we're still looking into that. THE COURT: But that's what you showed me last time. MR. ACKERMAN: There's another issue that's involved. It has nothing to do with Judge Carney's capability, honesty or anything. But when we originally undertook this with the bankruptcy court, we agreed to pay for the ORANGE REPORTING EFTA01164267 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 expenses to do the in camera review so that we would take it off of the burden of the Trustee. And my client has incurred in excess of $35,000 in special master fees, and we haven't even got to an in camera review. And so we're trying to find an efficient way to deal with that issue, and that's the sole issue. THE COURT: Let me suggest to you the least efficient way is having me on that. And I don't mean that I'm not capable of doing it. It's just that that's not the only thing I have to do. MR. ACKERMAN: And I respect that. And we're not trying to saddle you with that burden with the other issues that you have. But to the extent that Mr. Scarola is suggesting that we have some problem with Judge Carney in terms of his ability, his integrity would be false. Now, I do believe, though -- THE COURT: Let me interrupt you just one second. Wouldn't it be better, though, even though you may have spent some money now not to reinvent the wheel with somebody new? Because I suspect that it would -- MR. ACKERMAN: That's -- ORANGE REPORTING EFTA01164268 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE COURT: This is not -- this is not -- I mean I know both of you all think it's simple, but to me it's not simple. There are some really complex issues here. I shouldn't say complex issues, but there's really some issues that whichever way we're going is going to make a tremendous difference it seems to me in how this case proceeds. And it's critical it seems to me that that decision should -- those decisions should be made upfront in this case. MR. ACKERMAN: That's a discussion as I advised Mr. Scarola yesterday that is going on right now with my client. However, I do believe it would still be in the Court's best interest to have this day hearing so that you can be familiar with the issues either as they're presented to you or as they come on recommendations, if that's the way we go. I still believe there's still a number of hearings that are scheduled that are before you. We have two pending matters coming up, two next week, which relate to discovery requests that we have compelled from Mr. Edwards that we need to get on with. There is a subpoena that we sent to the ORANGE REPORTING EFTA01164269 8 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Trustee. And based on the Court's prior order, that's scheduled for April 8th. We'd like to get that resolved with you so that we can get on with that kind of discovery. THE COURT: I understand because all of that has to be kind of decided together. The other thing I want to do is I want an amended complaint filed by the Plaintiff in this case. mean I tried to figure out what the operative thing is right now, and I don't -- did I give you permission to file an amendment? I don't know if there was ever an order. But regardless, I want an amended complaint filed that I know -- and then if you want to file a response to that, you know, within a short period of time so I've got some pleadings I can look at and see where the parameters as to what we're dealing with. Because I've always been troubled -- and again, I understand, Mr. Ackerman, you did not draft the initial Complaint. It's not your work product, but it is so amorphous that I don't even know what -- MR. ACKERMAN: I understand, but I would like just to clarify -- mention two things to the ORANGE REPORTING EFTA01164270 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Court. First of all, when we originally told the Court that we intended to amend it, that was accurate, but we were also operating under the impression that we would have had an in camera review of the documents from the Trustee long before now. That's one of the reasons why it hasn't been accomplished. In the meantime, I did file a motion to take out or remove certain provisions in the Complaint, Mr. Scarola agreed to it, there was an agreed order entered, so that some of -- and I wasn't aware, as I mentioned yesterday, that it was not your choice to have it done that way. But we will go ahead and file it. THE COURT: I issued the order, so I have to live with it I guess. MR. ACKERMAN: We'll do what you're asking. I just need to point out to you that there may be additional amendments coming when we get these additional documents. THE COURT: Okay. I have to make decisions now based upon what the Complaint says, what the Answer and Counterclaim say so I can look at the parameters of what this case is about so I can make decisions on privileged objections, number ORANGE REPORTING EFTA01164271 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 one, Fifth Amendment privilege obviously, attorney/client privilege, work product privileges, as well as the scope of the discovery itself based upon whether or not these things are relevant or material and what I'm going to require Mr. Epstein to answer or Mr. Edwards to answer, quite frankly. And I want to do that at one time so I have it all in front of me and I'm not trying to piecemeal it. And I can get you -- what I'll do is I've got some long trials scheduled here in the next couple of weeks, and I will just take a day off from one of those trials and spend it with you guys. I don't know how soon you all can get all of this stuff to me or is it practical that can be done. And I don't know what form it would come to me, because I know there are subpoenas to the Trustee, there are evidently objections to the privileged logs down there. I don't even know what it is down there. MR. ACKERMAN: What about the hearings that are scheduled next week? THE COURT: Well, I'd like to consolidate it all together as well as with this. All that ORANGE REPORTING EFTA01164272 11 1 2 3 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 includes all of the discovery issues; what your client has to answer in deposition, what Mr. Scarola's client has to answer in deposition, production requests, interrogatories, the documents that the privileges have been asserted, whether or not there has or has not been a waiver of the Fifth Amendment privilege as contended by Mr. Scarola or whether or not your client does have a right to a Fifth Amendment privilege so that we can get focused in on what I'm going to at least allow in terms of discovery, and then we can get to some of the substantive issues in the case it seems to me at some point. Otherwise we're never going to get there. MR. ACKERMAN: I understand. MR. SCAROLA: I think that the motions that have been filed crystallize the issues that need to be focused upon by the Court. I think that it would be advantageous for Your Honor if each side were to consolidate those motions into a single motion addressing each of the discovery issues that we perceive to be outstanding. So that shouldn't take very long because we're really -- we're not creating new work product. We're consolidating existing work that's ORANGE REPORTING EFTA01164273 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 already been done. And I would be prepared to move forward with that day long hearing at Your Honor's earliest convenience. THE COURT: What about the documents that are in the bankruptcy court? Is there any way that I can get that in front of me? MR. SCAROLA: Oh, absolutely. Yes. THE COURT: I want that in front of me too. I mean I'm not -- I'm not -- I don't want to interfere with whatever the bankruptcy judge thinks he can or cannot do, but I think I have - MR. ACKERMAN: I don't mean to interrupt, but let me tell you what the dynamic has been in the bankruptcy court. And I'm not trying to rehash old issues, but I want to answer the Court's questions so you can understand why we ended up over there to some extent. When the first subpoena was initially issued, it went to the Trustee. Mr. Scarola didn't object, and then it was served on the Trustee. Initially we were advised that there were approximately 5,000 e-mails that were responsive to that request and they were prepared to turn it over. Now, because of the number of requests for ORANGE REPORTING EFTA01164274 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 documents from the Trustee from the adversary proceedings and the people that are pursuing RRA for a variety of reasons, the Trustee came up with a joint confidentiality privilege agreement that they wanted to enter into with everybody so that they would not inadvertently waive any privileges that may exist with any existing clients from the old RRA firm. Now, we weren't able to do -- we attempted to do that agreement, but the Trustee never went forward with it, so we filed a motion in front of the bankruptcy court asking for these documents. And that is how he -- we had argument in front of it. A lot of the things we've argued here were argued before Judge Ray. And we ended up agreeing to pay for a special master. Now, at that time the bankruptcy court said these are the property of the Trustee. The Trustee has an interest in not waiving the privileges. At that time and concurrently now there is another party seeking the same set of documents that we had sought. So each time a party has come before the bankruptcy court to get records, what the Bankruptcy Judge has done through the Trustee is ORANGE REPORTING EFTA01164275 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 enter into some privilege type of agreement with regard to those records. Now, the problem with that is that you get the records, and then you have to look at them and then go back and get permission to use them. In this case, because the Trustee -- because we had a special master appointed, we weren't required to do that. So what we need to do, and what I'd like to do if Mr. Scarola agrees, is go back to the bankruptcy court and say we would like to proceed to get records and have rulings on privilege as you have said be governed by you and let that be sufficient for the Trustee, because the Trustee is worried about producing matters that would be privileged and then goes and seeks relief or decisions from the bankruptcy court as it relates to their responsibility because of their fiduciary responsibility as Trustee. THE COURT: I understand that, but here's the concern I have. Like it came up the other day, there are other people who have privilege interests in some of these documents, I presume, other than the parties in front me, right? I mean -- ORANGE REPORTING EFTA01164276 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ACKERMAN: Yes and no. I mean some of them have -- for example, one of the parties has a claim against in the adversary proceeding because they represent the investors who lost money in this Ponzi scheme. So a lot of the documents that they're seeking that may be privileged are the same. So there's an issue of potential conflicting -- THE COURT: I understand. What I'm talking about are other claimants out there that may have been involved in some type of joint representation agreement sharing information with the Rothstein firm that are not in front of me. Mr. Edwards is in front of me, but those people aren't in front of me. I mean it's such a conundrum I don't -- you know, Gordian's knot I guess is the best way to describe it. How can I get that stuff in front of me so I can see it? That's what I'm getting at. MR. SCAROLA: All we need to do, Your Honor, is to ask Judge Carney to deliver the documents to you, and I'm sure he'd be very happy to do that. He's got a full set. THE COURT: As much as I don't want to do this -- and I don't mean that in the way that it ORANGE REPORTING EFTA01164277 16 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sounded. Let me repeat that. It's just difficult and time consuming, but I think it has to be done here. And I'm finally convinced -- I'm finally convinced, I think after looking at all this, I think it really needs to be in front of me and I need to look at it, I need to make decisions because otherwise we're going off in all kinds of directions and I don't know what the end game is going to be. And I'm afraid that because there's some really critical issues here and it's really important that I try to make at least the best decision I can based on the best information I've got before we head down the road so far. How do we do that? MR. SCAROLA: Could we set some time limits? I think that Your Honor is absolutely right. The first thing we need is an amended complaint that clearly states what they contend that the causes of action are and the theories of damage against Mr. Edwards. I really don't care Mr. -- I don't care about Mr. Rothstein. I want to know what they are claiming against Mr. Edwards. I suggest that that ought to be done within a five-day period of time, ORANGE REPORTING EFTA01164278 1 2 3 4 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and we'll answer within five days. THE COURT: Can you handle that? MR. ACKERMAN: I'd like to have maybe seven or eight. You know, five days is kind of -- THE COURT: Seven and a half, will that -- MR. ACKERMAN: No, six and a half. THE COURT: -- eight days, whatever you -- that's fine. MR. SCAROLA: And we will respond within five days to that new Complaint. THE COURT: And then everybody can file consolidated motions on anything that's pending in front of me in regard to the depositions or discovery. And then what? MR. SCAROLA: Another five days after the Complaint and the Answer have been filed to simultaneously file consolidated discovery motions. THE COURT: Okay. MR. SCAROLA: And then Your Honor could set a hearing any time after that five-day period. THE COURT: Well, how about the stuff in the bankruptcy with Judge Carney? Do you want to have them -- do you all want to have an agreement or do you want to have that in the order or how ORANGE REPORTING EFTA01164279 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 are we going to accomplish that? MR. SCAROLA: Well, we can -- we can put that in the order. I don't know that it's necessary to do that because Judge Carney would, I'm sure, voluntarily deliver those materials to you. But we can include in the order the fact that you are requesting that the special master deliver the documents currently in his possession to this Court so that Your Honor may review those with the understanding that they'll be returned following that review. THE COURT: Okay. That sounds like a rational way to proceed. MR. ACKERMAN: There's only one other -- well, there's one other issue. One of the subpoenas that we have sent out to this -- to the -- and it's the basis of our hearing next April 8th -- to the Trustee, Judge Carney does not have those documents. They have not been turned over. MR. SCAROLA: Nor do we. MR. ACKERMAN: They don't have them either and we don't, so we'd have to deal with that I guess on one of the motions. I mean I think the ORANGE REPORTING EFTA01164280 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 best way to handle that is for you to rule on the motion and then decide what we're going to do with the documents after that. THE COURT: Which of these need to be produced to me in camera, and I'll look at them, which is probably what's going to happen I would suspect. MR. ACKERMAN: Well, what about the motions that are -- that we have already argued that you have not ruled on? What is -- THE COURT: I want them all consolidated. I have not ruled on the discovery motions and the rehearing motion because I started looking at that, and I looked at it this morning and I said, you know, this all dovetails together, and I really need to have a comprehensive hearing. And if it takes all day, it takes all day to really ferret out what the issues are, what I'm going to allow both sides to do because you're asking for a lot of information from Mr. Edwards and he's asking obviously a lot of information from you. And I just think it all ought to be done at one time. MR. SCAROLA: One motion that has been argued that will have an impact upon the scope of ORANGE REPORTING EFTA01164281 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 discovery is clearly the punitive damage motion. And we will deliver if those documents have not yet been delivered to Your Honor -- THE COURT: You should have gotten a call from my JA -- MR. SCAROLA: Asking that we deliver the summary judgment materials to you. They'll be delivered today. MR. ACKERMAN: And I would like -- I assume that I can deliver my response to that that was part of my -- THE COURT: What I asked for was -- and I need to make it clear was that the motion -- both of you at the hearing argued things that were presented to me at the summary judgment hearing, and I don't have that material anymore. Okay? That was discarded once the hearing -- once I ruled. So if you want me to look at anything that I considered in the motion for summary judgment hearing, then get it to me within five days to look at. MR. ACKERMAN: That's what I wanted -- THE COURT: I don't want new stuff. I don't want new memorandums. I don't -- ORANGE REPORTING EFTA01164282 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ACKERMAN: No. Just the stuff that we argued that relates to that issue. THE COURT: Right. You send it to me and I'll take a look at it because I don't have it anymore. And it was all based upon what -- and I do have a recollection, but I don't make rulings off what I recall to -- MR. SCAROLA: It should become pretty apparent to Your Honor when you look at the materials. I remember that they are very voluminous, but the motion itself summarizes I think all of the relevant document that are included in the Appendix. So when you look at it, it's probably best that you start with the motions on both sides. THE COURT: I will do that. MR. ACKERMAN: I assume that you're going to defer that ruling until you have all the motions? THE COURT: I don't know what I'm going to do. I am going to wait to look at the motion. I can't say that. I mean if there's evidence in the record right now well, first of all, I guess I should -- I am going to wait quite frankly until there's pleadings. ORANGE REPORTING EFTA01164283 LL 1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ACKERMAN: Until you have pleadings. THE COURT: Yeah, amended pleadings at least for that. So who is going to prepare the order here? MR. SCAROLA: Respectfully, sir, the motion to assert claim for punitive damages is based upon our Counterclaim. That's not going to be amended. So I don't know that Your Honor needs to wait for an amended complaint to decide whether we have presented a prima facie case for the assertion of a claim for punitive damages on our Counterclaim. And it will have an impact on the scope of discovery. So knowing that in advance of the one-day hearing would certainly be of assistance to both sides. MR. ACKERMAN: Your Honor, I respectfully disagree. If you are going to consider this all at one time with regard to the scope of the pleadings and what's at issue, a lot of the things Mr. Scarola has argued allows him to get into punitive damages based on the Complaint you're asking me to amend. THE COURT: Well, but what he's saying -- and I don't know what the amended pleadings are going to do. You're going to file your amended ORANGE REPORTING EFTA01164284 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 complaint. You're going to file your response. You will or will not amend your Counterclaim, you know, and I will make a ruling. That's all I can tell you. Whether I make a ruling before -- MR. ACKERMAN: I guess we need to know whether to list that motion on the ones that are scheduled for the hearing. And I think we should if you're continuing -- if your goal is to do all of it at one time. THE COURT: All I'm asking you to do now is set the discovery motions in front of me. If I rule on that punitive damage claim before that hearing, okay, then that will affect what is or is not discoverable, obviously, on both sides. If I don't rule on it, then I will consider it at that time. That's all I can tell you, okay, because I don't know what I'm going to do at this point. Would you all prepare an order to that effect and at least agree on what we're doing. And I'm going to cancel the case management conference which is set for April 15th at 11 o'clock. And would you all sometime after 1:30 this afternoon get ahold of my judicial assistant, and she'll set up a full day for you. And it will probably be mid-April -- excuse me, mid-May I ORANGE REPORTING EFTA01164285 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 would suspect is when I can get it done. Okay? MR. SCAROLA: Thank you, sir. MR. ACKERMAN: Thank you, Your Honor. The hearings next week we're going to put off to mid-May? THE COURT: All the hearings on discovery motions or anything like that, I want you to put them all in the consolidated motions. We'll have it at one time. MR. SCAROLA: Thank you very much, sir. THE COURT REPORTER: Would you care for a copy? you. MR. SCAROLA: I will take a copy. Thank (Thereupon, the proceedings were adjourned.) ORANGE REPORTING EFTA01164286 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CERTIFICATE I, ROBYN MAXWELL, Registered Professional Court Reporter, State of Florida at Large, certify that I was authorized to and did stenographically report the foregoing proceedings and that the transcript is a true and complete record of my stenographic notes. Dated this 1st day of April, 2011. ROBYN MAXWELL, RPR, FPR, CLR REALTIME SYSTEMS ADMINISTRATOR ORANGE REPORTING EFTA01164287 1 WORD INDEX 11:15 12:12 15:1 17:3, 6 18:15, 23 19:8 20:9, 23 21:1, 17 22:1, 16 23:5 24:3 action 16:20 additional 9:19, 20 addressing 11:21 adjourned 24:15 ADMINISTRATOR argued 13:14, 15 19:9, 25 20:14 21:2 22:20 argument 13:13 aside 3:20 asked 3:16 20:12 asking 9:17 13:12 19:20, 2/ 20:6 22:22 23:10 assert 22:6 Carney 5:1 6:17 15:21 17:23 18:4, 19 Carney's 5:23 CASE 1:2 5:8 7:8, 10 8:8 9:24 11:12 14:6 22:10 23:20 causes 16:20 certain 9:9 certainly 22:14 < 0 > 03 1:13 < 1 > 1 1:12 23:22 11 23:22 15th 1:1 3:20 23:21 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 < 5 > agreement 5:5 13:4, 10 14:1 12:5, 10, 14 13:12, 17, 24, 25 14:11, 17 clients 13:7 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 <A> Answer 9:23 10:6, 6 11:2, 3 12:15 BRADLEY 1:6 burden 5:6 6:2, 13 conference 3:19 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 consuming 16:2 contend 16:19 contended 11:7 continue 5:6, 7 continuing 23:8 conundrum 15:16 convenience 12:3 convinced 16:3, 4 copy 24:12, 13 Counterclaim 9:23 22:7, 11 23:2 COUNTY 1:1 couple 4:1, 10 10:12 COURT 1:1 3:3 5:3, 5, 12, 14, 19, 25 6:8, 20 7:1 8:5 9:1, 2, 15, 21 10:24 11:18 12:4, 5, 8, 14 13:12, 17, 24 14:11, 17, 20 15:9, 24 17:2, 5, 7, 11, 19, 22 18:10, 13 19:4, 11 20:4, 12, 24 21:3, 16, 20 22:2, 23 23:10 24:6, 11 25:5 COURTROOM 1:14 Court's 7:14 8:1 12:16 creating 11:24 critical 7:8 16:11 CROW 1:11 crystallize 11:17 currently 18:9 < D > damage 16:21 20:1 23:12 damages 22:6, 11, 21 DATE 1:12 Dated 25:10 DAVID 1:11 day 3:11, 21 7:15 10:12 12:2 14:22 16:25 17:21 19:17, 17 22:14 23:24 25:10 days 4:1, 16 17:1, 4, 7, 10, 15 20:21 deal 6:6 18:24 dealing 8:18 decide 19:2 22:9 decided 8:6 decision 7:9 16:13 decisions 7:9 9:21, 25 14:17 16:6 DEFENDANT 2:9 Defendants 1:8 defer 21:18 deliver 15:21 18:5, 9 20:2, 6, 10 delivered 20:3, 8 DENNEY 2:7 deposition 3:16 11:2, 3 depositions 3:15 17:13 describe 15:18 difference 7:7 difficult 16:1 directions 16:8 disagree 22:17 discarded 20:17 discoverable 23:14 discovery 7:22 8:4 10:3 11:1, 11, 21 17:14, 17 19:12 20:1 22:13 23:11 24:6 discussion 7:11 DIXIE 1:14 document 21:12 documents 4:19 9:5, 20 11:5 12:4 13:/, 12, 22 14:23 15:5, 22 18:9, 20 19:3 20:2 doing 4:9 6:10 23:19 dovetails 4:7 19:15 draft 8:21 Drive 2:3 dynamic 12:13 < E > earliest 12:3 EDWARDS 1:6 7:23 10:6 15:13 16:21, 24 19:20 effect 23:19 efficient 6:6, 9 eight 17:4, 7 either 7:16 18:23 ended 12:17 13:15 enter 13:5 14:1 entered 9:11 entity 5:14 EPSTEIN 1:2 3:4, 16 10:6 ESQUIRE 2:2, 5 everybody 13:5 17:11 evidence 21:22 evidently 10:19 example 15:2 excess 6:3 excuse 23:25 exist 13:7 existing 11:25 13:7 expenses 6:1 extent 6:15 12:17 < F > facie 22:10 fact 3:19 18:7 false 6:18 familiar 7:15 far 16:14 fees 6:4 ferret 19:18 fiduciary 14:18 Fifth 10:1 11:7, 9 figure 8:9 file 8:11, 14 9:8, 14 17:11, 17 22:25 23:1 flied 8:8, 14 11:17 13:11 17:16 finally 16:3, 3 find 4:3 6:6 fine 4:20 17:8 firm 13:8 15:13 First 9:1 12:18 16:18 21:23 five 16:25 17:1, 4, 10, 15, 21 20:21 FL 1:15 2:4, 8 Flagler 2:3 flavor 3:10 FLORIDA 1:1 25:5 focused 11:10, 18 following 18:12 foregoing 25:7 form 10:17 forward 12:2 13:11 FOWLER 2:2, 5 FPR 1:17 25:14 frankly 10:7 21:24 front 4:15 10:9 12:6, 8 13:11, 13 14:24 15:13, 14, 14, 18 16:5 17:13 23:11 full 3:10 15:23 23:24 <G> game 16:8 gander 4:6 getting 15:19 give 8:10 go 3:21 7:18 9:14 14:5, 10 goal 23:8 goes 14:16 going 3:18 4:5, 9, 11 7:6, 6, 12 10:5 11:10, 14 16:7, 9 18:1 19:2, 6, 19 21:17, 20, 21, 24 22:3, 7, 17, 25, 25 23:1, 17, 20 24:4 good 4:5, 6 goose 4:5 Gordian's 15:17 gotten 20:4 governed 14:13 guess 4:6 5:12 9:16 15:17 18:25 21:23 23:5 guys 3:5, 23 10:14 < H > half 17:5, 6 handle 17:2 19:1 happen 19:6 happy 15:22 head 16:14 HEARING 1:11 7:15 12:2 17:21 18:18 19:16 20:14, 15, 17, 21 22:14 23:7, 13 hearings 7:20 10:22 24:4, 6 he'd 15:22 help 5:5 HIGHWAY 1:14 honesty 5:23 Honor 4:21, 24 5:13, 16, 17 11:19 15:21 16:17 17:20 18:10 20:3 21:9 22:8, 16 24:3 HONORABLE 1:11 ORANGE REPORTING EFTA01164289 3 Honors 12:3 <I> mpact 19:25 22:12 mportant 16:12 mpresslon 9:4 kind 4:7 8:4, 6 17:4 kinds 16:7 knot 15:17 know 3:18 4:10, 18 7:2 8:11, 14, 15, 23 memorandums 20:25 mention 8:25 mentioned 9:12 mid 23:25, 25 24:5 money 6:22 15:4 outstanding 3:13 11:22 < P > P.A 2:2, 7 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 nciuding 3:12 21:20 22:8, 24 23:3, 5, 17 20:1, 13, 20 21:11, 21 22:5 23:6 part 4:4 20:11 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, 5, 16 11:1, 12, 17, 21 12:15 16:11 19:13 looks 3:20 lost 15:4 12:25 <O> 11:13 23:17 Ponzi 15:5 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 18:14 proceeding 15:3 proceedings 13:2 24:15 25:7 proceeds 7:8 produced 19:5 producing 14:15 product 8:22 10:2 11:25 production 11:4 Professional 25:4 property 13:18 provisions 9:9 PUBLIC 1:17 punitive 20:1 22:6, 11, 21 23:12 pursuing 13:2 put 4:7 18:2 24:4, 7 < Q > questions 3:15, 16 12:16 quite 10:7 21:24 <R> rational 18:14 Ray 13:15 really 3:10, 24 4:3, 11, 12 7:3, 5 11:24 16:5, 11, 11, 22 19:16, 18 REALTIME 1:18 25:15 reasons 9:6 13:3 recall 21:7 recollection 21:6 recommendations 7:17 record 4:23 21:23 25:8 records 13:24 14:2, 4, 12 reflect 4:25 refusal 5:9 regard 14:2 17:13 22:18 regardless 8:13 Registered 25:4 rehash 12:15 rehearing 19:13 reinvent 6:23 relate 7:22 relates 14:17 21:2 relevant 10:5 21:12 relief 14:16 relieve 5:5 remember 21:10 remove 9:9 repeat 16:1 repeatedly 5:1 report 25:6 REPORTED 1:17 REPORTER 24:11 25:5 represent 15:4 representation 15:11 request 12:24 requesting 18:8 requests 7:22 11:4 12:25 require 10:5 required 14:7 resolved 8:3 respect 6:12 Respectfully 22:5, 16 respond 17:9 response 8:15 20:10 23:1 responsibility 14:18, 19 responsive 12:23 returned 18:11 review 6:1, 5 9:5 18:10, 12 right 7:13 8:10 11:9 14:24 16:18 21:3, 23 road 16:14 ROBYN 1:17 25:4, 14 ROTHSTEIN 1:6 3:4 15:12 16:23 RPR 1:17 25:14 RRA 13:2, 8 rule 19:1 23:12, 15 ruled 19:10, 12 20:18 ruling 3:8, 24 21:18 23:3, 4 rulings 14:12 21:6 <S> saddle 6:13 saying 22:23 says 9:22 SCAROLA 2:5, 7 4:22 5:16 6:15 7:12 9:10 11:8, 16 12:7, 19 14:10 15:20 16:16 17:9, 15, 20 18:2, 22 19:24 20:6 21:8 22:5, 20 24:2, 10, 13 Scarola's 11:3 scheduled 7:20 8:2 10:11, 23 23:7 scheme 15:5 scope 10:3 19:25 22:12, 18 SCOTT 1:6 SEARCY 2:7 searcylaw.com 2:9 second 6:21 see 3:6 8:17 15:19 seeking 13:21 15:6 seeks 14:16 send 21:3 sense 4:22 sent 7:25 18:17 served 12:20 set 3:19, 20 13:21 15:23 16:16 17:20 23:11, 21, 24 seven 17:3, 5 sharing 15:12 she'll 23:24 SHIPLEY 2:7 short 8:15 showed 5:19 side 4:5 11:19 sides 19:19 21:15 22:15 23:14 simple 7:2, 3 simultaneously 17:17 single 11:20 sir 5:11 22:5 24:2, 10 sit 4:16 six 17:6 sole 6:7 somebody 6:23 soon 10:15 sought 13:22 sounded 16:1 sounds 18:13 South 2:3 special 3:22 4:24 5:3, 8 6:4 13:16 14:7 18:8 spend 10:13 spent 6:22 start 21:14 started 19:13 State 25:5 states 16:19 status 3:19 stenographic 25:8 stenographically 25:6 stuff 3:13, 25 10:16 15:18 17:22 20:24 21:1 subpoena 7:25 12:18 subpoenas 10:18 18:17 substantial 5:2 substantive 11:12 sufficient 14:14 suggest 6:8 16:24 suggesting 6:16 suggestion 3:6 summarizes 21:11 summary 20:7, 15, 20 sure 15:22 18:5 suspect 6:24 19:7 24:1 SYSTEMS 1:18 25:15 < T > take 3:11 6:2 9:9 10:12 11:23 21:4 24:13 TAKEN 1:12, 16 takes 4:16 19:17, 17 talking 4:18, 19 15:9 tell 12:13 23:4, 16 terms 6:17 11:11 Thank 5:11 24:2, 3, 10, 13 theories 16:20 thing 3:5 6:11 8:7, 10 16:18 things 3:8 8:25 10:4 13:14 20:14 22:19 think 3:7 4:3, 7 7:2 11:/6, 18 12:11 16:2, 4, 5, /7 ORANGE REPORTING EFTA01164291 18:25 19:22 21:12 23:7 thinks 12:11 three 3:25 TIME 1:13 3:17 5:20 8:16 10:8 13:17, 20, 23 16:2, 16, 25 17:21 19:23 22:18 23:9, 16 24:9 today 4:2 20:8 told 9:1 transcript 25:7 tremendous 7:7 trials 10:11, 13 tried 8:9 troubled 8:19 true 25:7 Trustee 6:2 8:1 9:5 10:19 12:19, 21 13:1, 3, 10, 18, 19, 25 14:6, 14, 14, 19 18:19 Trustee's 3:14 try 16:12 trying 6:6, 13 10:9 12:14 turn 12:24 turned 18:20 two 4:16 7:21, 21 8:25 type 14:1 15:11 < U > understand 3:22 8:5, 20, 24 11:15 12:16 14:20 15:9 understanding 18:11 undertook 5:24 upfront 7:10 use 14:5 < V > variety 13:3 versus 3:4 voluminous 21:11 voluntarily 18:5 volunteered 5:4 vs 1:5 < W > wait 21:2/, 24 22:8 waive 13:6 waiver 11:6 waiving 13:19 want 3:6, 8. 20, 24 4:25 5:10 8:7, 7, 13, 14 10:8 12:8, 9, 15 15:24 16:23 17:23, 24, 25 19:11 20:19, 24, 25 24:7 wanted 13:5 20:23 way 4:6 6:6, 9 7:6, 18 9:13 12:5 15:17, 25 18:14 19:1 week 7:22 10:23 24:4 weeks 4:10 10:12 well 10:3, 24, 25 17:22 18:2, 16 19:8 21:23 22:23 went 12:19 13:10 We're 3:3, 18 4:19 5:16, 17, 18 6:5, 13 7:6 8:18 11:13, 24, 24, 25 16:7 19:2 23:19 24:4 WEST 1:15 2:3, 4, 8 we've 13:14 wheel 6:23 whichever 7:6 WHITE 2:2 white.com 2:5 willing 3:21, 23 work 5:2, 4, 7 8:21 10:2 11:24, 25 worried 14:15 < Y > Yeah 22:2 yesterday 4:1 7:12 9:12 ORANGE REPORTING EFTA01164292