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TEWCARDENASLLP FourSeasonsTower,15thFloor,1441BrickellAvenue,Miami,Florida3313134073055361112
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 2 of 277 1
Plaintiffs,
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Defendants.
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TAKEN ON BEHALF OF THE PLAINTIFFS APRIL 25, 2011 10:00 A.M. - 5:13 P.M.
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REIF KING WELCH LEGAL SERVICES 888 EAST LAS OLAS BLVD., SUITE 508, FORT LAUDERDALE, FLORIDA 33301
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DJSP ENTERPRISES, INC., a Florida Corporation, DJSP ENTERPRISES, INC., a British Virgin Islands Company, LAW OFFICES OF DAVID J. STERN, P.A., DAVID J. STERN, individually, DAL GROUP, LLC, a Delaware LLC, DJS PROCESSING, LLC, a Delaware LLC, PROFESSIONAL TITLE AND ABSTRACT COMPANY OF FLORIDA, a Delaware LLC, and DEFAULT SERVTCTNG, LLC, a Delaware LLC,
VOLUME I
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RENAE MOWAT, NIKKI MACK, ~O ARKLYNN RAHMING, and QUENNA ~~ HUMPHREY individually and on behalf of all other similarly situated individuals,
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 3 of 277
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On behalf of the Defendants: TEW CARDENAS, LLP JEFFREY TEW, ESQ. FOUR SEASONS TOWER 15TH FLOOR, 1441 BRICKELL AVE., MIAMI, FLORIDA 33131 (305) 536-1112 jt@tewlaw.com DJSP ENTERPRISES, INC. STEPHEN J. BERNSTEIN, ESQ. 900 SOUTH PINE ISLAND RD., SUITE 400,
or
REAL ESTATE & INVESTMENT LAW CHANDRA PARKER DOUCETTE, ESQ. 621 NORTHWEST 53RD ST., SUITE 240, BOCA RATON, FLORIDA 33487 (561)995-1490 chandra@chandralaw.net
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RAPOPORT LAW GROUP DAWN M. RAPOPORT, ESQ. 1314 EAST LAS OLAS BLVD., SUITE 121, FORT LAUDERDALE, FLORIDA 33301 (954)712-7457 dawn@rapoprtlawgroup.com
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FARMER, JAFFE, WEISSING, EDWARDS, FISTOS & LEHRMAN, PL STEVE JAFFE, ESQ. 425 NORTH ANDREWS AVE., SUITE 2, FORT LAUDERDALE, FLORIDA 33301 (954)524-2820 steve@pathtojustice.com
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BERGER SINGERMAN FRANK SCRUGGS, ESQ. 350 EAST LAS OLAS BLVD., SUITE 1000, FORT LAUDERDALE, FLORIDA 33301 (954)525-9900 fscruggs@bergersingerman.com
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 5 of 277 4
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WITNESS:
INDEX OF EXAMINATION
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David J. Stern
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1 INDEX TO EXHIBITS
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3 Exhibit 4 5 6 7 8
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Press release that announces new investigations against Law Offices of Marshall Watson, Shapiro & Fishman, Law Office of David J. Stern
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APRIL 25, 2011 COURT REPORTER: video record. Okay. We are now on the
of David Stern taken in the matter of Mowat, Mack, Rahming & Humphrey v. DSJP Enterprises, case number is 10-62302-CIV-UNGARO. at Reif King Welch Legal Services, Inc. The
Olas Boulevard, Fort Lauderdale, Florida 33301. The digital reporter is Samantha Hanstein with the firm of Reif King Welch.
MS. DOUCETTE:
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BY MR. JAFFE: DAVID J. STERN,
Mr. Stern, thanks for coming in this morning. I'll be Has your
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taking your deposition probably most of today. deposition ever been taken before? A Yes, sir.
Q
attorney? A
All right.
Q
A
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is that correct? A I officially waive. Okay. And if you need a break, just tell me.
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I'll be happy to break anytime. just going over your background. Where are you from? I'd like to start off, We could, you know.
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Born in Chicago,
Illinois.
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A
Carolina.
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up there.
A
Great school.
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Q
A
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A
1982.
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I graduated 1986.
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And where?
South Texas College of Law in Houston, Texas.
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these articles, but that one came across my desk. That was good.
Q
What year?
school before becoming a member of the bar; ultimately became a member of the bar in 1991; didn't necessarily practice with them. I was a national operations
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A
Q
Yes, sir.
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1990.
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Bar right after graduation from law school while working for my then-previous employer.
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I'm sorry.
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1990?
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A
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was eligible.
Q
A
Okay.
I did not.
Q A
Q
No.
thereafter. A
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1986.
And if I repeat myself which I'm about to, I
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1990.
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LOGS group.
Q And what type of practice did you have?
A
Q initially?
An intern/law clerk.
Q
1990?
Why did you not sit for the Florida Bar until
A And
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Q
A
of Gerald Shapiro.
Q Okay.
LOGS.
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After working for them for three months, I've recruited And I was
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I ultimately was responsible for opening or restructuring As a result, I was on the road pretty Literally, every day. I still have my
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issues were, make recommendations, report back to the national office together with the guy who's from the national office and the managing attorneys, implemented a plan to turn the office around.
grew from dealing with distressed offices to opening up brand new offices. So, during the eight years I was
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with LOGS, I either opened or dealt with some 33 offices in, like, 27, 28 different states.
Q so, obviously, during that time, too busy to
sit down take the Florida Bar, other things were happening that were of interest to you?
A
Q
Correct, yes.
The three months that you were in Tampa before
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fair to say that you learned as much as you could regarding mortgage lender representation in the Tampa
office?
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distressed office unbeknownst to me, and my first day there, the senior management from Chicago came in and
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what you just termed the quality control rep for LOGS.
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broke and asked them for the opportunity to dive right in it. And long story short, they laughed at me, but
at the end of the day, they gave me the opportunity. And during those three months, I worked 24/7, had this neat little SkyPager, because cellphones were so big. Dare I say my age. can publish it.
Q
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That's on there.
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I'm 50.
Did you tell him to ask that? May 6th, 1960. But don't ask me where the
time went.
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Yes, sir.
Approximately.
How many?
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week?
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24/7.
Sometimes, I
went to bed at 1:00; sometimes I went to bed at 9:00 and woke up at 1:00. Pretty much the same work ethic I've I went to law school at
Tier 4?
Tier 4.
Thank you.
10:30, got home, study for a couple of hours and just kind of develop a sleep pattern of three hours.
Q school? industry? What type of work did you do during law Does it have anything to do with the mortgage
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literal?
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they gave me emergency teaching permit based on some online courses. So, I taught senior government and I
Q
A
Q
A
I did.
Back then?
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A
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A
I did.
All four years.
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A
Two years.
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Yes, sir.
Q
obtain?
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Double major?
Yes, sir.
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tuition.
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Financial aid.
So, not under a scholarship?
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No.
When you went to work at LOGS, I assume, just
learned it.
Q
A
Q
Yes, sir.
where there was dissatisfaction from clients or failure on behalf of the office to meet milestones for the full time frames that are essential to the industry. course, if you want to find that you're missing And, of
relationship ending.
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this secretary.
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Well, I was single at that time, so there was I would say understanding the process
from an operations standpoint, understanding the process from the legal standpoint and probably most importantly,
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 18 of 277 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 establishing relationships with clients. All three, I
industry to be a success?
Okay.
responsibility.
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offices.
were my responsibility.
Q Could you list some of your clients?
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They were a up-and-coming firm -- they had 13 When I left, they had 54 offices, of which 33
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Countrywide, pretty much -- they were national firms and they represented pretty much everyone. still around. Some of that are
Once in a while,
familiar with the movement of a particular action through a process when that required efficiency, yet needed to be done economically.
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standpoint, I had to move things from the title, area where it starts, to the complaint, which is essential, and a time-driven milestone, milestone being the key component of the foreclosure; how to most efficiently
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My responsibilities were not also limited to judicial foreclosures, but we have power sales states, which are
simply -- know this requirements, which are the majority So, I learned that. And then I learned
of the states.
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Gold Dome.
Sure.
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A
Q
They did.
manuals?
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Very few.
because it goes back to the old computers, to the big, old screens. And when I started my practice eight years
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later, I hired a computers' consultant and we were designing and had the mouse. I had never seen a mouse.
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So, I picked it up and I started playing with the ball. And I looked at it, he said, what are you doing? what the hell is this?
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I chuckle
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So, I was not the most technological and hopeful that my testimony hasn't led you to believe that I was technologically advanced.
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house.
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Yes, sir.
A Q
Yes, sir.
created, certainly established, bringing over ideas from other offices that were successful ideas and certainly eliminating or actually those that were disastrous.
Q
A
Q
I did.
you studied?
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to courthouses and I would gather up copies of, say, the judicial state, complaints from the five largest guys
with the senior attorney to make sure that we were in compliance with that particular jurisdictions, laws.
Q
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A to me.
Q
A
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I wouldn't.
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Yes, sir.
believe you told me that was within three months of being employed with LOGS?
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Q
Yes, sir.
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Q
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And the California operation became distressed and there was a falling out between the partners. in San Diego that handled foreclosures. One office was The other
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walked out, make recommendations to the national office. And ultimately, that project entailed consolidating the San Diego office and the Westwood office to Costa Mesa.
Q
So, it sounds like that you have a forte for
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evaluating people within the mortgage industry, employees, deciding who was maybe dead weight, who was a keeper and how to best create a better functioning environment?
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MR. TEW:
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very little.
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The amount of knowledge that he instilled into me in the brief time that I was privileged enough to be with him is just amazing. And I looked back and I say,
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Objection.
Objection to form.
Same objection.
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street from UCLA and the partner that walked out walked
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 24 of 277 23
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Criminal Justice degree, minor in sociology and a law degree. But certainly, no degree from an operational
amazing.
So, you had a gut.
A
Q
I think it was.
just stayed with them eight years, you elevated, they opened more offices?
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Q
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I understand.
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Sure.
If I would have left after six years, who If I were to stay for nine or 10
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representing to you that you practiced at that time, but you certainly absorbed and understood the process, learn the process, and from an intellectual standpoint, you believe you were able to create your own systems that would be more efficient for the client?
A
Q
Correct, yes.
element, that is, that you believe that relationships were one of the three most important things that you
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quality control guy, any time that a file had gone awry, our office had gone awry, it was my watch. captain of the ship. I was the
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while I don't have the answers to everything, I have always had the will to find those answers. And I
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majority of the industry which LOGS represented allowed me to be of instant credibility the day I hung my
shingle out on January 1st, 1994 where I could reach out to the clients with the results that were beyond my wildest dreams.
Q
important elements that you learned was using or creating milestones in the foreclosure process.
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that is a very important element to the industry and certainly to the client; is that correct?
A
Q
Yes, sir.
Please--
existent already, a measuring tool that the industry had established. How long does it take you to get the service completed, judgment entered, So, using them or So, I did
complaint filed,
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Same.
What dates? What's the time frames?
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And
You've
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 27 of 277 26 1 2 3 4 5 6 7 8 9 10 got judicial foreclosures, you've got power sale foreclosures. In Texas and Georgia, you can get a
procedures, superior court versus circuit court. states, you can file in Federal court.
Q
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12 13 14 15 16 17 18 19 20 21 22 23 24 yes.
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File received.
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Yes, sir.
Then we'll get to that later. 270
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Yes, sir.
-- to judgment?
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Sale held.
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Some
States like
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Florida milestones -- back then, who sets it? set them? standard? Does the client set them? Please explain it.
Do you
Thank you.
dates or goals?
A
Q
borrower's debt is problematic to post to tombstone, so you have to -- that that would be an uncontrollable delay. Or if you've got a special in today's
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environment where everything is litigious and class action attorneys suing people, foreclosure attorneys wiping people out. would -Q
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It wasn't as litigious.
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Hard
Is the industry
Okay.
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to be consistent in that.
Q
milestones?
A
Q
Yes, sir.
A
Q
No.
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Monthly quotas?
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question.
Q
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Were there
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Florida.
A by stages.
Florida?
to the type of department, they would have certain period of time to move it to the next stage, which would have been complaint stage.
over a certain period of time I don't recall what those time frames were. of paralegals. That was one of the separate set
complaint was filed to service, a different set of paralegals because its stage concept. you will. Assembly line, if
Then it'd move to the next stage, judgment. And then it moved to
in?
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Yes, sir.
Because you mentioned paralegal on two
Okay.
occasions. involved?
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MR. TEW:
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A attorney.
Q
department?
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A
Q
Back at LOGS?
Yes, sir.
John Stupprich.
S-T-U-P-P-R-I-C-H, was the title mastermind esquire. Title in the State of Florida is not the functionality of attorneys
Q
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Absolutely.
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John Stupprich,
located?
Tampa, Florida.
All right. The complaints, those were
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-- of computers? Yes. All right.
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input i t into their computer, complaint would be split out for the review of a lawyer?
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Yes,
sir.
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Q
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Florida, how many departments there within a given office? A Foreclosure, bankruptcy, eviction, deed and litigation, it just depends that the top of loss I don't
lieu, title,
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mitigation research, back in the LOGS days, recall the loss mitigation.
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packaged and then filed together. Explain to me, if you will, if at LOGS, in
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mitigation means.
retention, modification, repayment, forbearance or amount of retention, deed and lieu and short sale.
Q
A
Q
Well, it depends.
A
Q
Yes, sir.
standpoint?
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I had assistance.
I'm certainly not But although
Of course, anyone.
recommending that you did that alone. 24/7, you might have been able to.
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deficiencies, you were in a position to attempt to remedy via creating new systems and policies and
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procedures and then implementing?
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years, working 24/7 for somewhere else, making them lots of money throughout this country, you knew the mortgage foreclosure business at that point? In your mind.
where I was six months ago, I would say that I certainly did.
Q
A
Q
Yes, sir.
Why?
that 70 times, that I take Florida Bar, because I went to Miami Edison, grew up in Florida, loved Florida, had
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to be in Florida.
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They
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11
writing that next time, you'll pay for three months, and I would have to look in or see. Since I was already
signed up for the bar, during this time period, they said, why didn't you sit for it? lose. course. So, I sat for it. You've got nothing to
ones I had test on the previous months, crammed the other four essays in, sat for the multi-state, sat for the essay. early. I remember I finished the multi-state up
12 13 14 15 16 17 18 19 20 21 22 23
In an hour early, I'm spinning my pen. says, What are you doing?" my answers.
Q
or
And I passed.
pF
Luck or genius?
ec los
.S to
MR. TEW:
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written.
24
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ur eF
That's it.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 36 of 277 35
1
Q
2
3 4 5
6
7
Yes, sir. Worked for LOGS for a few years? Through 1993.
Yes.
8
9
10
11
business cards.
Q
A
12
13
14
15 16
17
Any kids?
A
Two.
Q
A
19
.S to
20 21 22 23
24
LOGS?
pF
18
ww w
No, sir, I wasn't fired. When was that? I submitted in resignation July of 1993.
My
Q
A
25
or
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Logan, 10.
ur eF
Brianna, 14.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 37 of 277 36
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 wife.
Q office.
A
Q
pink walls, blue carpet, 2386 computers, roller stamps, copier we had to move by hand and an old-fashioned checkbook with very little money in it. days.
Q
ur eF
(877)
Single.
I know we got married six months after that -- six months after that, June 19.
Q
.S to
single state.
Q And certainly --
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25
www.reifkingwelch.com
pF
or
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I love those
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 38 of 277 37
1
2
3
Yes.
And since customer relations is one, if not
4
5
6
7
8 9
really thought that I would leave. time, I was the third man --
10
11
Okay.
Thank you.
12 13 14 15 16 17 18 19
20
Before I left?
Yes, sir.
A
Q
No, sir.
.S to
21
22
23
ww w
24
in Orlando.
25
www.reifkingwelch.com
pF
All right.
or
ec los
ur eF
(877)
A friend of a friend said, go visit somebody They may have some foreclosures for you.
ra ud
leave?
No contact with
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 39 of 277 38
1
business, it's hard to make, at the turnpike card machine back then.
2
3
4
5
Okay.
7
8
A anything.
But I had already given my notice and decided Because I wasn't sure what I was going to
9 10
11
All right.
12 13
14 15 16 17 18
19
A Yes.
Yes, sir.
Q
or false?
ec los
ur eF
(877)
ra ud
21 22
23
24
.S to
20
Q
A
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Q
A
25
www.reifkingwelch.com
pF
False.
Cheryl Sammons.
Anybody else?
or
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True
All right.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 40 of 277 39
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Cheryl Sammons?
A Q
that office?
A
Q
to LOGS. staff?
Advertisement.
Okay.
ur eF
(877)
ra ud
pretty good. Q A Q A
At the office?
Yes, I was.
Your office?
.S to
pF
Hiring, firing.
And so, obviously, there came a time
Okay.
when you were at the Charlotte area and you were interviewing staff members and you met Cheryl Sammons?
ww w
Yes, sir.
Okay. And I assume she was a fine-tuned act?
Q A
25
Yes, sir.
or
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Good.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 41 of 277 40
1 2 3 4 5 6 7 8 9 10
11
All right.
And at that time, was the You were staffing it or you just
There was a
Shapiro and Davis law firm. falling out. the files. the files.
Ron Davis wrote the clients saying, I want And Gerry wrote the clients saying I want And David Stern's job was to go in and find
office space, find a managing attorney, hire staff and get the clients comfortable that Gerry's lack of physical presence would not be detrimental to the client -- to the client's files. That's where I put the
12 13 14 15 16 17 18 19 20 21 22 23 24
A
Q
20.
pF
or
ec los
ur eF
(877)
.S to
ww w
I felt I did.
Yes, sir.
25
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.co
I would say
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 42 of 277 41
1 2 3
Q
4
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Q your own.
A
Q
It did.
It did, no regrets.
So, on December 31st, 1993, you knew what you You knew how to open your own office?
were in for.
A
Q
Yes, sir.
to Cheryl Sammons and told her what you were going to do?
A
Q
ec los
ur eF
(877)
or
~pparent
of all these.
pF
ever leave?
.S to
you, Robbie, her husband, guys, in a nice, quiet office. We would have clients
ww w
your little picket fence and live in a nice, new regular law office practice, which lasted about four days.
Q You didn't tell her you wanted to go big and
25
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She said,
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 43 of 277 42
2 3 4 5 6 7 8
A thought.
Q
I didn't have that idea. I didn't have that I never ever imagined.
this to be new office, how many people were staffed in that office in 1989?
A
Q
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
staff of six.
Q
Okay.
A
Q
.S to
pF
A
Q
or
ec los
I spoke to Cheryl
Cheryl on a
Q
ww w
Why?
25
ur eF
ra ud
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 44 of 277 43
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
regard to Cheryl Sammons' employment at LOGS, that lasted six months at the Charlotte office that you had just opened?
A
Q
That is correct.
She resigned?
national employee.
Q
So, you pulled her, so to speak, from the You obviously saw something in her and
single office.
said she could be of asset to me clarity with the powers to be, assuming, and you put her on to the national seat.
.S to
ww w
best of my knowledge.
pF
She maintained her residence there, to the I think so her husband lived
25
or
ec los
ur eF
Yes, sir.
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With
great at implementing.
She
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 45 of 277 44
2 3 4 5 6
7
review of reports.
reports in terms of achieving milestones, how were these offices moving. Can't rely on the offices to
8 9 10
11
National Auditors?
A
Q
A
National Auditors.
Since you --
ur eF
12
13
repeat that.
Q
14 15 16
17
procedures, by this time implemented them, you obviously -- I'll use the word "taught" her your systems, and she was sharp enough to understand that and then follow up LOGS' policies.
19 20 21 22 23 24
.S to
we're able to establish today, especially someone like Rick Powers. That was exactly what was assumed. Can we take a break? Sure. (Thereupon, a short break was
ww w
25
pF
18
or
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I can't
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 46 of 277 45
1
taken. ) (Deposition resumed.)
Q
2
3
4 5
6
I don't know.
Ballpark?
7
8
Q
A
I have no idea.
More than a thousand?
Q
A
10
11
I don't know.
More than 500?
Q
A
12
13
I'm sorry.
Okay.
I don't know.
14 15 16 17 18 19
20
point, correct?
A
Q
.S to
office?
A
21 22
pF
Yes, sir.
I don't recall.
Okay. So, is it fair to say that there were
ww w
23
24
25
For LOGS,
or
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ra ud
I don't recall.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 47 of 277 46
1
yes, sir.
Q
2
3
4
5
6
7
Okay.
The intent lies for me to have offices up and running efficiently without my day-to-day interaction.
Q
8
9
Okay.
10
11
12 13
were being met, that operational guidelines, policies and procedures were being followed.
Q
14
15 16
17
1991, 1992, understood and had business in the state of Florida on behalf of LOGS?
A
Yes, sir.
pF
18 19 20
21 22 23 24
Q
A
Yes, sir.
or
ww w
.S to
Okay.
Ms. Sammons coming to South Florida to work with you, did she have any training or experience in dealing with state of Florida foreclosure process?
A
25
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ur eF
ra ud
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 48 of 277 47
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A At LOGS.
Okay.
A
Q
I don't know.
All right.
earlier that you were in daily contact with Ms. Sammons at that time? "That time," again, being late or early
1990s up until the time you guys left LOGS. A Pretty much in that. Okay. All right.
drove up to Orlando to get your first client in 1994. Did I hear you accurately? A
1993 or the beginning of 1994 after I had given my notice to LOGS, but was uncertain what type of law I was going to practice. Q A
.S to
to Orlando? A No, sir. All right. So, you opened in January of 1994.
ww w
25
www.reifkingwelch.com
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 49 of 277 48
2 3 4 5 6 7 8 9 10
11
A quickly.
Q
Like what?
-- as well.
ur eF
contract law.
12 13 14 15 16 17 18 19 20 21 22 23 24
have my sight set on anything, and I really was uncertain, at the end of the day, how successful or how -- how successful, I guess, I would be in taking work for LOGS because we always have long-standing relationships. going to be.
Q
pF
Okay.
.S to
three clients, they all agreed to give me work. things changed certainly before four months.
or
ec los
ww w
apologize,
25
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I like the And I
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 50 of 277
49
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
had established over the last eight years at LOGS were now paying off as it relates to your own personal law office?
A correct.
Q
A
Q
A
Q
A
Q
that fair?
.S to
ww w
pF
She was.
lawyers or both?
25
Yes, both.
or
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 51 of 277
50
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
was?
Q
A
Yes.
I'm sorry.
looking for extra work, so I hired him as a counsel and paid him on a case-by-case basis. As court appearance His
in Florida?
A
Q
Yes, sir.
Okay.
ec los
And how quickly into your own personal Or was -- you opened
or
.S to
pF
Okay.
ur eF
ww w
cases, familiarity with case law, familiarity with the rules of civil procedure. Everything was done
25
ra ud
(3376)
.co
They are
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 52 of 277 51
1
differently from the LOGS.
Q
A
4 5
6
7
remember, everything I did at LOGS had to come with the scrutiny of the national office. In that one day when
Gerry didn't want me to do what I needed to be done or felt needed to be done, it was a series of on-going denials. No, you can't do it this way; no, you can't do
8
9
it this way; no, you can't do it this way. day, he said, "No, you can't do it this way.
ur eF
10
11
think you can do it better, then go out and do it." that's exactly right.
ra ud
12 13 14 15 16 17 18 19
Right.
institute the David J. Stern systems into your now new law office?
MR. SCRUGGS:
or
ec los
Okay.
Objection to form.
Vagueness.
21 22 23
24
.S to
20
things?
Q
ww w
practice, and you've instituted those policies and procedures. Did you take what you learned there and
25
pF
.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 53 of 277
52
2 3 4 5 6 7 8 9 10
11
January of 1994?
states that I established policies and procedures were states different than Florida.
Q
Okay.
of the LOGS' philosophy, LOGS' budget constraints and lots of things that I wanted to do that I couldn't do. And, of course, Florida was a -- a totally different sort of state. So, I was able to come up with different
12
13
ideas, different technology, different reports, and I didn't have the accountability to the national office. My accountability became direct to the client. So,
14 15 16 17 18 19 20 21 22 23 24
processes -- the collar was taken off me, the rains were gone and I was free to run as I felt, yes.
Q
or
ec los
ww w
.S to
pF
is when you first came into the LOGS Group, you were out
ur eF
(877)
When I started in Tampa, it was a distressed My primary focus there was -- it was distressed
25
office.
ra ud
My only confusion
.co
And I
No, sir.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 54 of 277
53
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Take a deep
experience; B, you're not a lawyer and C, there are established guidelines that are uniform. That's why
clients used the LOGS Group because they have uniformity and guidelines were appropriate within the given states.
Q So, when you opened up your Florida office in
January of 1994, did you put into place your idea of how you wanted to run David J. Stern, P.A.?
A
Q
A
Q
Yes, sir.
.S to
ww w
fund.
Q By the end of 1994, how many attorneys did you
25
pF
or
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m
It
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 55 of 277
54
2 3 4 5 6 7 8 9 10
11
I don't recall.
Two?
Counting myself?
Sure.
A
Q
Thirty.
12
13
Where in Hollywood?
14 15 16 17 18 19 20 21 22 23 24
A
Q
much in Hollywood?
A
Q
A space.
pF
-- to 2,400 to 3,200.
or
ec los
.S to
ww w
1995-ish
25
ur eF
ra ud
85.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 56 of 277 55
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
We
A
Q
short time?
A
Q
More than we needed, but space was like $7 per square foot or it's $5 per square foot plus cam charge of $7. It was owned by a Trust and the Trust wanted us to take the whole thing. It used to be a Stein Mart. So, at
pF
rent.
Timing is everything.
or
ec los
.S to
ww w
A
Q
10, 12.
I -- I can't remember.
25
ur eF
ra ud
.co
Okay.
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56
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A you know.
Q
responsibilities?
A
Q
Well, when we were in North Miami, she did She did proofs of claims in bankruptcy, she
everything.
ec los
ur eF
manager in charge of hiring and firing in all areas. She -- we developed a whole new set of tracking, processes.
.S to
happened.
Q
ww w
pF
or
Objection to form.
25
ra ud
She did it
(3376)
.co
A hundred.
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57
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
She didn't have relationships with client, she She could speak to them
to answer a status question but she couldn't go out and draw up a business.
Q
Fair enough.
development.
A
Q
Okay.
couldn't do the evictions, she couldn't do the bankruptcies, she couldn't do the contested cases, she couldn't do the title, the searches or the exams, she
claim.
.S to
ww w
at that point?
A
Q
25
pF
could, certainly, if I needed her to do a proof of But at that point in time, things became
or
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I disagree.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 59 of 277 58
2 3
4
Fair enough.
the beginning.
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
authorities with title and helped established our title operation and maintained the relationship with attorney's title.
Q P.A.?
A
Q
1994, early.
Okay.
A
Q
contact with Sam -- 1994 to, certainly, 1996, you had daily contact with Sam?
A
Q
No.
.S to
involved or anything.
Q
time frame?
ww w
25
pF
In our facility?
Yeah.
In our office?
or
ec los
ur eF
Yes, sir.
ra ud
.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 60 of 277 59
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Okay.
at that time.
A offices. I'm not sure if he was paid by the law I -- I -- I don't recall.
He was -- he was
He was either paid by the Law Offices of David J. Stern or Professional Title & Abstract.
incorporated?
A 1994.
Q
A
Q
A
Q
A
Q
board?
pF
.S to
Okay.
ww w
In 1996, when you moved into Plantation, can When I say "you,"
25
or
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ur eF
ra ud
.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 61 of 277 60
2 3 4 5
6 7 8 9
systems with no-collar on your ability to create systems, like you had a lot, you would get instituted those systems within to -- into your law office.
10
11
12 13 14 15
16 17 18 19
ec los
way of LOGS, their methodology, their technology. liked a very little from there.
ur eF
(877)
ra ud
you said my reigns were removed and I was free to do things consistent with my dream.
21 22 23
.S to
20
adjunct to you?
ww w
24
pF
or
25
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There
m
It
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 62 of 277 61
1
central accounting, central HR. accounting. We have our own HR, Cheryl
2
3
6 7
8
expertise to implement requirements under the bankruptcy code or in litigation department, just things that she couldn't do. They were more in the foreclosure area and
9
10 11 12 13 14 15 16 17 18 19
20
perhaps working with HR, assisting in some hiring, second interviews, whatever the case may be.
Correct.
previously?
Well, it -- it had, but that was with the So, I had to say,
.S to
21 22
pF
Right.
And she learned quickly before she went down We actually went the opposite
ww w
23
24
direction.
Q
A
25
Yes, sir.
or
ec los
Correct.
ur eF
ra ud
.co
couldn't do that.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 63 of 277
62
2 3 4 5 6 7 8 9 10
11
A old.
No, sir.
ra ud
as you did?
Okay.
was a plenty of time for you to explain and express your vision to her?
A
Q
Yes, sir.
Okay.
12 13 14 15 16 17 18 19 20 21 22 23 24
that and you established the systems that you wanted to place within your law office?
two cents.
.S to
pF
ww w
Okay.
25
or
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.co
She
And
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 64 of 277 63
1 2 3 4 5 6 7 8 9 10
11
A
Q
A
Q
we were selected as Fannie Mae attorney, there was no requirement that the services use Fannie Mae attorney network. I believe at that point in time, we had
12 13 14 15 16 17 18 19 20
21
ec los
selected under the -- the structure of the program back then, we didn't feel that it would really hurt us because relationships had been established. It could
22 23 24
.S to
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or
of 1998 is correct in that, and I don't recall if it is, if we have just starting off that year, it would But had we already
ww w
been established, again, under your timeline, four years earlier, I don't think it made no difference.
25
ur eF
ra ud
And had we not been
.co
in 1998?
year.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 65 of 277
64
2 3 4 5 6 7 8 9 10
11
year in 1998 and 1999 by Fannie Mae, did that have any positive impact on your business?
but it was certainly something I believe that the industry recognized. on my resume.
the Mortgage Banker conferences, didn't have clients, you know, like poodle on my legs saying, oh, my God, you are the attorney of the year. files. Come and get my
12
13
achievement of my folks and a part of success is sharing it with the people that have gotten where they are. I felt, I think, more proud for them in their
ec los
ur eF
(877)
ra ud
14 15 16 17 18 19 20 21 22 23 24
mean "handle"?
.S to
ww w
have maintained an active courtroom presence in the South Florida market handling foreclosures on behalf of
25
clients?
www.reifkingwelch.com
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or
What do you
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And
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 66 of 277
65
4 5 6 7 8 9 10
11
ago, I would not say that I personally maintain activity or really any hands -- just take hand -- hands-on
You went to court when you opened your own office in 1994?
A
Q
Yes, sir.
12 13 14 15 16 17 18 19 20 21 22 23 24
for any period of time when you had your own office?
I'm going back, obviously, further than I care But in the beginning where it was
to say, 17 years.
just myself and my chains of counsel, I did go to court for a few months.
pF
quite clear.
or
.S to
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25
flattering to go to court.
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.co
I wouldn't --
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 67 of 277
66
2 3 4 5 6 7 8 9 10
11
some point that maybe or it's just once every month, once every three months. In 1994, I was doing
12 13 14 15 16 17 18 19 20 21 22 23
is the time frame in which you became, like you said, less involved in the court system operations of your business and more involved in client development and overall running of the operation.
A
Q
.S to
city in St. Louis, you need to sign this pleadings. the training, that is necessary -- necessary. rules change, judge requirements change.
pF
or
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ur eF
(877)
ra ud
So, it got to
ww w
24
minds of the trusted attorneys from the senior level that I better not be the cook in the kitchen anymore.
25
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At As local
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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
me.
I -- I would say
Q
A
Okay.
Okay.
that's correct.
your business? A
Keeping good, educated, hard working staff is It doesn't matter if it's the
.S to
the Bryant class action as where two other big competitor law firms, the Codilis Law Firm and the
ww w
24
25
www.reifkingwelch.com
pF
and that class action resolved; is that correct? In 1998, our offices -- my office was sued in
And that case was resolved? That case was resolved, yes, sir. Do you recollect, as you sit here today, what
or
ec los
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1996, 1997.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 69 of 277
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2 3 4 5 6 7 8 9 10
11
allegation.
Fair enough.
Overcharging for title, which in Codilis case, Because that's what Fannie They alleged that we
needed to keep time records, which in the Codilis -Beck v. Codilis the court said they will need to do. The only issues that we had unresolved that never went to hearing because they were settled or they did not like the way that Professional Title & Abstract was structured, they felt who was a shelf corporation because it wasn't formalized. agreed to formalize it.
Q mean?
12
13
14 15 16 17 18 19 20 21 22 23 24
ec los
We also --
.S to
They didn't like the way -- that it need the appearance of a shelf corporation. What they did conceive was the
amount that Professional Title and the law firm charged for Title was reasonable and customary.
Q
ww w
25
case?
www.reifkingwelch.com
pF
or
ur eF
Period of settlement, we
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Allegations?
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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A
Q
Yes, sir.
A
Q
Yes, sir.
recollect?
that the court felt we were misleading by providing invoices from Professional Title & Abstract when Professional Title & Abstract appeared to be a shelf corporation. And again, the Florida bar, in terms of my
public reprimand, did recognize that the charges were customary and reasonable. They just didn't like the
fact that we said Professional Title bill the law firm 325 when they were an area of Professional Title but no
.S to
pF
Well, Cheryl and I had two 386s hooked So, I would say January 1st, 1994.
Okay. And did your law office and each of its
ww w
together.
Q
25
or
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.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 71 of 277 70
2
3 A
MR. SCRUGGS:
Objection to form.
4
5
"centralized" is, if one cord goes to the other cord. Yeah, but that's a -- a techie question. need Norman Gottschalk to help me.
6 7
8
10
11
Q
A
12 13
(
14 15 16 17
Norman Gottschalk.
Q
A
-- A-L-K.
19
20
pF
18
MR. BERNSTEIN:
or
21
22
23
24
.S to
the chief information officer at DJSP Enterprises. It's not a law firm.
(By Mr. Jaffe) How long was he been employed
ww w
in your world?
25
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Objection to form.
Same objection.
ur eF
S-C-H-A-L-K.
ra ud
.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 72 of 277 71
1
A He went public in January of 2010. Created
2
3
4
5
2002, 2005, in that time frame, who ran your computer system?
6
7
8
Vince Petrov.
Okay.
Q
office?
9
10
11
Vince worked for the law office, I'm guessing, 1996. And then he became an
12 13
14
15 16
ec los
It's okay.
17
18 19 20 21 22 23
24
.S to
systems?
pF
Yes, yes.
or
title.
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25
He is not.
ur eF
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 73 of 277 72
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A
Q
I do not.
A
Q
somewhere -- and again, that's why I'm asking, I've read somewhere that you've handled approximately 15,000 foreclosures, you, your office in 2006 throughout the State of Florida, does that sound accurate?
A
Q
A
Q
Yes.
four years.
.S to
growth.
Q
pF
Pine Island Road, Plantation, Florida 33324 for three or So, that's when the business had dramatic
ww w
Well, let's see, we have a 10-year lease Simply, we stayed there until 1996, 2006 but
25
there.
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2 3 4 5 6 7 8 9 10
11
couple of years.
Q
A
Q
Yes, sir.
Okay.
A
Q
2007, 2008.
Okay.
at that point?
A
Q
Yes, sir.
12 13 14 15 16 17 18 19 20 21 22 23 24
For what?
Anything.
Q
A
Yes, sir.
Q
A
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.S to
pF
Kentucky.
Okay.
or
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storage areas, that's all Arena Default Servicing. Professional Title and the law offices -- Professional
25
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A couple of
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Okay.
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1
A
2
3
4
6
7
8
Myself.
Q
A
I believe, yeah.
In --
10
11
MR. SCRUGGS:
Okay.
12
13
ec los
Right.
14 15 16 17
18 19
All right.
MR. JAFFE:
Correct.
follow up on it.
.S to
20
21 22
23
24
pF
MR. SCRUGGS:
or
ww w
Q
A
25
ur eF
I don't -- I don't
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 76 of 277 75
1 2 3 4 5 6 7
8
Who was
A
Q
Or me.
Or you?
Gosh.
ra ud
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
but Shameeza's been gone for a while. to -- I don't want to butcher it.
S-H-A-M-E-E-Z-A then I-S-H-A-H-A-K. MR. JAFFE: Ladies and gentlemen, it's 12:05. At this point,
certainly, I have lots more to cover, but I think we should probably grab some lunch.
or
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Okay.
pF
.S to
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25
(3376)
.co
I -- I
know if it tripled.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 77 of 277 76
1
with your move into the 900 South Pine Island Road location. A
Q
2
3
4
5
6 7
8
9
space that up to about recently or maybe even now is currently occupied with the Stern operations; is that correct? MR. SCRUGGS:
A
10
11
Objection to form.
12 13 14 15 16 17 18 19 20 21 22
operations?
Q
alone.
(By Mr. Jaffe) You know what, let's leave that We'll get through to that in its natural course.
When you moved into the 900 space, the law office and Professional Title and Abstract moved into that space,
.S to
ww w
23
24
25
www.reifkingwelch.com
pF
correct?
Yes, sir.
And how many floors did you occupy initially? Initially, one floor. And did there come a time where you occupied
Yes, sir. And how many floors ultimately did you occupy
or
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Fair enough.
A
Q
Five.
Okay.
I'm sorry.
ec los
said that, we occupied all of four, all of five, all of six and all of seven and just a very small portion of two.
Q
A
Q
pF
All right.
or
Floor two?
Yes, sir.
So, all of four, all of five, all
.S to
All right.
ww w
Yeah.
we did make it to floor number eight. MR. TEW: Now we're talking Pine Island in
25
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ra ud
.co
at its height?
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11
Well, then let's differentiate -At its height. All right. We're okay?
All right.
12
13
14
ec los
-- operations. There is no
15 16 17 18 19 20 21 22 23 24
such thing as Stern operations. MR. JAFFE: MR. TEW: All right. was a law firm until 2010, then
pF
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MR. JAFFE:
or
It
I'll rephrase.
how many floors did the Stern Law Office and Professional Title and Abstract occupy?
ww w
MR. BERNSTEIN:
25
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point in time.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 80 of 277 79
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7
at that point?
8 9 10
11
A
Q
leases on any other space other than the 900 space, in different building?
A
12
13
Q
A
14 15 16
17
ec los
19 20 21 22 23
.S to
pF
18
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24
25
I don't recall.
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2 3 4
5
2009
A
Q
I don't recall.
December 2009?
A
Q
6 7 8 9 10
11
approximately?
A
Q
2000.
12
13
Q
A
14 15 16 17 18 19 20 21 22 23 24
A yes.
.S to
A
Q
lawyers?
ww w
pF
Not lawyers.
25
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 82 of 277 81
(
\
1 2 3 4 5 6 7 8 9 10
11
A
Q
A
Q
Inaccurate statement.
All right.
A
Q
I did not.
12 13 14 15 16 17 18 19 20 21 22 23 24
an annual basis?
Short term.
ec los
Short term.
Okay.
car?
Yes.
or
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MR. TEW:
.S to
Yes, sir.
How many times?
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A
Q
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Is
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 83 of 277
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11
A
Q
I don't recall.
Late 2000s?
mortgage?
MR. TEW:
Q
MR. TEW: A
Q
Okay.
No, sir.
A
Q
12
13
A
Q
No, sir.
14 15 16 17 18 19 20 21 22 23 24
A
Q
.S to
Cheryl Sammons in 2009 as one wherein that you would often be found yelling at each other within your office or her office?
ww w
A
Q
25
pF
No, sir.
In 2009, how would you describe her role
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 84 of 277 83
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A
with Miriam and Bev to run the firm. Miriam's and Bev's watch.
Q
7
8 9 10 11 12 13 14 15 16
l7
you always the captain of the ship with regard to your law office?
A
Q
MR. TEW:
pF
18 19 20 21 22 23 24
of the ship."
MR. JAFFE:
or
.S to
logs operations?
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25
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 85 of 277 84
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A When we moved into the 900 South Pine Island,
when volumes increased dramatically -- you said three times and I said dramatically, I don't know what
amount -- at that point in time, if not, prior, but certainly at that point in time, the day-to-day
operations were turned over to Miriam and Bev, under their structure of supervision, there are other attorneys.
A
Q
I don't -- I
.S to
with the running of your law office, you had turned that over to Ms. McComas and Ms. Mendiendez at the time
you
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25
www.reifkingwelch.com
pF
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or
Mendieta.
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dining, clients, putting on the seminars, speaking, taking care of the clients, being there, being present, accountable.
Q
A
Q
A
Q
Miriam Mendieta and Beverly McComas -were running the operation at that point?
A
Q
A
Q
.S to
you're responsible for all three of those people's actions and behaviors?
ww w
pF
Yes, sir.
25
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I don't
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 87 of 277
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Yeah.
I'm sorry.
manager or person in charge of Professional Title and Abstract when you moved into the 900 South Pine Island Road?
late 2009?
A
Q
.S to
with, Cheryl Sammons work with Carol Whitlow to smooth -- to ensure smooth transition of the work, Sam
Silverglate work with Miriam Mendieta and Beverly So, if there were problems, Sam would go to It
ww w
McComas.
25
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MR. TEW:
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Once a month, with certainty and as needed If a client called and said, "I'm
going to pull the work if this doesn't happen," blah, blah, blah, blah, they had to come to me with that.
Q
Maybe once a month, twice a month, where they It may have happened
more, but where it got elevated to me, thankfully, we have very solid relationships with the clients. And if
the clients had issues, they would reach out to me really at the end of the day because I'm the one that cultivated and maintained the relationships.
.S to
Pine Island?
continue to bring in additional volumes it would require And with additional staff comes
ww w
additional staff.
additional space, hence, the growth that we outlined and eight, nine, 10.
25
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11
you that the staff that she was hiring was inexperienced?
A
Q
don't recall.
ur eF
(877)
ra ud
She did.
2008, I want to say, she did come to me and said -- it was October, I believe, October 2008, maybe on October 2007 -- and said, "David, the paralegals have too much work." And I go, "Which paralegals?" She told me what And that was
12
13
14 15 16 17 18 19 20 21 22 23
the result of -- in -- in January, I think it's 2008, I brought on three new clients that were supposed to be
.S to
pF
Who?
Yes.
ww w
Each month, so what she did was she assigned those clients to an existing team that handled other clients' files. In October, she came to me and said the
24
25
or
ec los
.co
In
I don't recall.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 90 of 277 89
1 2 3 4 5 6 7
8
blank and blank, the three I just told you, Wachovia, Homac and Saxon.
giving us 100, ultimately, it turned into 500 or 600 a month. So, the paralegals were overwhelmed.
up the phone and I contacted all three of the clients and asked them to stop sending us referrals. At this
9 10
11
point in time, we cannot handle and I did not want to disappoint or fail them. They were originally taken
back, because I'm the guy that comes in with knee pads and begs for more. At the end of the day, they praised
12 13
me and said, "When you're ready to take the work back, let me know." We assured them that we would finish of And the volumes just continue
14
15 16 17 18 19 20 21 22 23 24
or
ec los
ur eF
(877)
.S to
of paralegals were overwhelmed, I did the right thing and contacted the client and told them we can't do it anymore.
Q
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25
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And those
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I picked
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 91 of 277
90
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11
protocols for training were established both at the lawyer and the non-lawyer levels by you?
certain that we maintained our reputation as best in class and the best in the industry. And as bodies were
brought on, we wanted to make certain that there was nothing lost in the -- in translation. So, I instructed
12 13 14 15 16 17 18 19 20 21 22 23
Cheryl to designate three or four people of her choosing -- as I sit here today, I -- I -- I'm not sure who it is. I told Miriam Mendieta and Beverly McComas
on the attorney side that based on the volumes, based on the number of attorneys, based on the case load, we
.S to
Cheryl.
pF
the attorneys, for a fact, before they were released to I believe, a 60 or 90-day
ww w
24
training period with Billi Pollack and Maria Solomon, two most senior attorneys being used to train.
25
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There
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A
Q
Trained
I mean, in the
assume that you would have been the one to train her since she -- since you were the one who was establishing the protocols since your collar was unleashed to do things the way David J. stern wanted them done within his law office?
MR. BERNSTEIN: A
I
Miriam role
ec los
I -- I agree.
ur eF
(877)
or
.S to
would be greater if I focused on client relations and the other thing that went off is I'm not an attorney. I'm not into case law. I'm not into sitting down and
ww w
reading briefs.
pF
25
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 93 of 277 92
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 done.
Q
beginning.
Q
A
Q
I don't recall.
You don't recall objection?
A I
A
Q
Well--
A
Q
ec los
.S to
Mac lowered the foreclosure processing -- processing time for uncontested/controllable foreclosures from 180 So, based on the custom and practice,
ww w
it was necessary for the law office to complete the foreclosure within the insurer/investor time frame
25
pF
No, sir.
or
At what point?
ur eF
Because if that was Let me ask you that.
(3376)
ra ud
.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 94 of 277 93
1
absent any uncontrollable matter, which would include litigation or delays that are beyond the law firm's control.
Q
2
3 4 5
Pine Island Road location in December of 2009, would you agree with me that the only entities -- the only David J. Stern entities was the law office and the Title and Abstract company?
6
7 8
9
MR. TEW:
A
Objection to form.
10
11
only entities?
Q
12 13
14 15 16 17 18 19
20
21
ur eF
I'll rephrase.
first moved into 900 Pine Island Road, the two entities that went with you, "you" being the Law Offices of David J. Stern, were this office and Professional Title and Abstract; is that correct?
A
No, sir.
Okay.
that point?
.S to
A
Q
pF
Okay.
22
23
24
ww w
commercial foreclosures.
Q
A
25
M-C-S-U-R-O-Y.
or
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When you
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 95 of 277
94
2 3 4 5 6 7 8 9 10
11
A
Q
What address?
900.
Okay. All right.
Q
A
That's
Okay.
that's it.
12
13
entities still occupy the space that you originally moved into except maybe expanded; is that fair?
14 15 16 17 18 19 20 21 22 23 24
A
Q
Yes, sir.
Okay.
there, okay, believe it or not, I've seen pictures. many entrances and exits are there in the building?
ec los
pF
Just one.
or
One with four elevators -- no, wait You got two emergency
.S to
a minute, no.
Let me help.
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25
Yeah.
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95
2 3 4 5 6 7 8 9 10
11
I'm finished,
Q
we're done.
Okay.
Yes,
sir.
What floor?
I believe five.
12 13 14 15 16 17 18 19 20 21 22 23 24
when I was in the office, I usually stay put, but I think they're on five.
Q
A
Q
Four.
had.
.S to
because of growth got spread to a second floor. and McSurdy were on -- on one floor. And Default
pF
law office and it would have been on whatever floors we Professional Title, I can't tell you if they -Stern
ww w
or
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(877)
25
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What I mean
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That's all,
( ,
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 97 of 277 96
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I -- I -- I don't remember.
I -- that just
Sure.
ask her where are the Default Servicing people, but that was granular. So, as, you know, the owner of a 14,000
or 12,000-person law firm, I didn't deal with the two Default Servicing people that were on to deal with checks.
ur eF
definitely understand how busy you are and how big the company you got.
ec los
.S to
pF
David Obata.
O-B-A-T-A.
or
And I don't even know who the And you may want to know that David
Obata is deceased.
Q
ww w
A Q
You guys are good at what you do, so -I appreciate that. Who did they report to?
25
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.co
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 98 of 277 97
1
2
3
4
5
Q
A
And who did she report to? She would report to me.
6 7
8
9 10
11
12 13 14
15
didn't get her tickets to Kentucky Derby and killed someone, I would not be responsible.
ec los
responsible for putting policies and procedures in place for Professional Title and Abstract? A That would have been Carol and Sam. And who would they report to? Sam reported to Miriam. And Carol reported to
16 17
18
19 20 21 22 23
24
.S to
Cheryl.
all of the floor number four as of 2009? A Yes, sir. All of floor number four and all of floor
ww w
25
pF
or
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ra ud
.co
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So, I think all the four, all the five, half of six, maybe half of seven.
Q
they were stuck God knows where but they wouldn't have had a floor.
Q All right.
Now, you just said that the law How much of five was
I don't know.
professional Title and Abstract was located on the fifth floor. To what degree it was split between the two, I
don't know.
Q
pF
2009, approximately?
60, 80.
Would you agree with me that the law
.S to
Okay.
office and Professional Title and Abstract shared the same file system in 2006 to 2009?
ww w
25
Okay.
or
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Default Servicing?
(3376)
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I -- I can't recall.
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A
Q
Access what?
Their file.
A
Q
Yes, sir.
A
Q
A
Q
No, sir.
Okay.
A
Q
I believe two.
Okay. One would have been the person's
name@sternlaw.com?
.S to
pF
Dstern
Okay.
ww w
25
or
ec los
dstern.com.
What would the other have been?
ur eF
ra ud
.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 101 of 277
100
2 3 4 5
6
A
Q
Yeah.
addresses because I'm sure none of us really do. it's in our Blackberry, it's in our Blackberry.
Q
ra ud
Fair enough.
7 8 9 10
11
12 13 14 15 16 17 18 19 20 21 22 23 24
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is that fair?
or
ec los
ur eF
(877)
They perhaps
.S to
Okay.
ww w
department for the law office, and Professional Title and Abstract, and Default Services; is that correct?
25
.co
If
So--
of 2009?
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1 2
3
that the HR department used and applied to those three entities as of December 2009?
4
5
There may
6 7
8
Q
A
9
10 11 12 13 14 15 16 17 18 19
20
Yes, sir.
again, of those three entities; the law office, Professional Title and Abstract, and Default Services?
No, sir.
Same question.
and firing for law offices and Professional Title and Abstract?
No, sir.
.S to
pF
All right.
or
Going by your question, HR may not have always They may have processed the paperwork the firing may have been
21 22
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23
24
25
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Yes, sir.
A
Q
I don't know.
A
Q
Yes, sir.
Okay.
reported to?
A
Q
department as well?
ww w
.S to
pF
Yes, sir.
or
they would have made sure they're paid, they would have
given adjustments, they would have taken care of insurance, workmans' comp, et cetera.
Q
25
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Let me
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2 3 4 5 6 7 8 9 10
11
A
Q
Yes, sir.
Did stern, P.A. have a 401(k)?
A
Q
Yes, sir.
12
13
ur eF
believe that any department within the Law Offices of David J. Stern would not have been allowed to participate.
Q
14 15 16 17 18 19 20 21 22 23 24
allowed to participate?
or not.
Q
pF
.S to
participate?
I don't know.
IT would have been able to participate,
ww w
correct?
25
Right.
or
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Who would?
2009?
Q
A
Correct.
The HR director.
Q
A
A
Q
A
Q
Sorry.
ec los
Fair enough.
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or
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thing is never got called to HR for -You were never recommended by HR?
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right?
25
Years ago.
We won.
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The good
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2009
okay?
A existed.
Q
Okay.
A
Q
When did that -- when did DJSP Processing, DJS Processing, LLC, when was that born?
LLC
A
Q
appeared to register DJS Processing, LLC on September 15th, 2009 in Delaware, would that refresh your recollection?
.S to
pF
or
ec los
ww w
All right.
for themselves.
25
understanding.
ur eF
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As far as the dates
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Good.
Congratulations.
As of September
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 107 of 277 106
1
2 3 4
5
Vaughn.
7
8
9
10 11 12 13
Okay.
you are the managing member of DJS Processing, LLC as of September 2009?
14 15 16 17 18 19
A
Q
I am not.
21 22
.S to
20
formed?
A
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23
24
pF
DJSP Processing --
Let me rephrase.
or
25
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 108 of 277 107
1
doing the transaction. And under our Florida Code of
2
3
4
5
6
7
8
of a back office dealing with the non-legal aspect of the particular business. So, DJS Processing was created
in order to allow for a transaction to occur consisting with the Florida Ethics guidelines, rules and regulations.
9
10 11 12 13
14 15 16 17 18 19
20
borders of Florida and get into additional businesses, both typical and, perhaps, unrelated. And probably
three years before the transaction, I was approached by some financial advisors from a whole host of companies.
pF
or
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21
22
23 24
.S to
going.
Detroit, Michigan, who I'm fairly good friends with. David, you've done a
ww w
25
where are the land mines and, you know, who should I
ur eF
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2 3 4 5 6
7
it.
done the deal, they've already done the documents, they know where the lands mines are," et cetera. So, I
8 9 10
11
although they had called me a few times. "Look, I'm interested in meeting with you. it works. Tell me what it's about.
ur eF
12 13 14 15 16
17
dollar-wise.
imagine, very labor-intensive in terms of picking the right partner. Do you go public? Do you go hedge? Do you go private? What is the lesser
Do you go equity?
19 20 21 22 23 24
.S to
previous six or seven law firms that have done what I did, that a back office specializing in or creating a non-legal entity. And that would be the entity that In my case, we
ww w
25
pF
18
or
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use?
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Florida, LLC was formed in September of 2009 in Delaware. A Are you aware of that? I am not.
of Professional Title and Abstract Company of Florida, LLC in September of 2009? A I am not.
.S to
Florida, LLC in September of 2009? A I am not. What is the Stern Holding Company? I have to get the specifics from Tom Vaughn. Have you ever heard of the Stern Holding
ww w
25
Company?
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 111 of 277 110
2 3 4 5 6 7
8
the
and Professional Title, Inc. into that holding company for purpose of -- of wind down is what I understand.
Q
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A
Q
A
Q
I'm not.
aware of that?
A
Q
or
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.S to
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holding company that holds the newly formed operating subsidiaries; Professional Title and Abstract, DJS Processing, Default Servicing. Professional and
25
pF
DAL, D-A-L?
I don't recall.
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(3376)
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Yes, I have.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 112 of 277 111
2 3 4 5 6
7
A
Q
I don't know.
Who would know?
8 9 10 11 12
13
A
Q
Thomas Vaughn.
understand this, your two managing attorneys could hire and fire attorneys without consulting you?
A
Yes, sir.
Q
A
14 15 16
17
19 20 21 22 23 24
.S to
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operation.
Q
25
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18
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Default, yeah.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 113 of 277 112
2 3 4 5 6
7
That was an
Okay.
8 9 10 11 12 13 14 15 16
17
A
Q
A
Q
than a decade.
And depending upon what they were looking to do, it may include Sam. Solomon. It could -- it could have included Maria It If it
19 20 21 22 23 24
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managers in.
Q
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18
A
Q
I don't know.
or
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December 2009?
25
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obvious one.
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No.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 114 of 277 113
1 2 3 4 5 6 7 8 9 10
Q
you never had budget meetings with any of your key staff?
That's correct.
job done, they have carte blanche. question is December 31st, 2009.
Q
Absolutely.
your law office to take a foreclosed -- foreclosure case from cradle to grave was created by you?
11
12 13 14 15 16 17 18 19 20 21 22 23 24
to grave concept was not a word that was used to take the foreclosure from the beginning to the end. answer to your question is "no."
Q
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default of loan on behalf of the client, so it generally come in as a foreclosure. If the foreclosure is
interrupted by a bankruptcy, we will handle that Once the bankruptcy has been concluded and
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bankruptcy.
we're free -- sorry -- from the automatic stay, we would then continue on with the foreclosure. Once the
25
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So, the
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a real estate-owned property, we would then open the title work and handle the closing on behalf of the grantor, the bank as the seller, to the grantee.
Q
they continued to be expanded and improved upon by people that were smarter than I was in those particular areas.
Q
Okay.
until 2006, you were the captain of the ship with regard to your office and how it ran and the systems that were to be used?
A ship.
I would agree that I was the captain of the I would strongly disagree that processes were put The
ww w
.S to
development, better practices, things like that, Miriam, Sam, Beverly, when she joined, and Cheryl, did a lot of So, there was -- in 2000 -- even in 2000, there
that.
were procedures and policies put in place that they were comfortable in doing and realized that I would have no objection. If I had to deal with every granular change
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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
local rule or a judge making some sort of requirement, that by definition would be an impossibility. Hence,
development expanding processes and procedures very quickly fell on Miriam, Beverly and -- and -- and Cheryl.
I was there for the day-to-day probably up He had my nose and things, but it didn't Sometimes you can't be the
until 2006.
rainmaker and be involved in procedure because very quickly, I did not know or have knowledge as to the capabilities of the staff that was in place.
Q Did you ever object to any of the policies or
I don't
ec los
I don't recall.
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is that correct?
or
Objection.
.S to
Professional Title, new Default Servicing that was part DJSP Enterprises went public.
In January actually, let's
ww w
of DJSP Enterprises.
24
25
backup, okay?
ur eF
Same objection.
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2010?
A
It's true. sorry.
I'm sorry.
Through Chardan, it was their sixth or seventh spec where they raised money looking for opportunities. understanding, the previous facts all went to China-based opportunities. My
known to the Chardan folks, they fell in love with the opportunity. And we ended up getting together and Chardan then changed its name to
No.
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I -- I believe Enterprises is a
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(877)
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Objection.
or
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did?
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25
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m
I'm
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 118 of 277 117
2 3 4 5 6 7 8 9 10 11 12
13
your knowledge, was there any operation of any kind in dealing with DJSP Enterprises in Puerto Rico?
ra ud
Yes, sir.
today.
A
Q
14 15 16 17 18 19 20 21 22 23 24
A
Q
Yes, sir.
.S to
Enterprises, the Processing, the -- I -- I -- I have to ask Tom before we get to the total chart and what to I can't keep up with my role as officer or
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what.
25
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118
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
president, registered agent and managing member of DJS Processing Enterprises, Florida?
Objection.
there between DJSP, Default Servicing, Professional Title, Enterprises, it's more than I know. I'd have to
defer to Tom Vaughn and look to some sort of chart for guidance because I can't keep up -Q
exists?
A
Q
No.
pF
or
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Objection.
.S to
because
Q
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24
A
Q
Yes.
And are you aware that you were the president
25
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Form. Form.
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Okay.
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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
MR. TEW: A
Q
Same objection.
you aware you were the managing member of Professional Title and Abstract?
A
Q
I'm sorry.
were the chairman of the board and president of the DAL group?
pF
I do not know.
or
.S to
Tom Vaughn.
Q
I do not know.
ww w
Tom Vaughn. Q A
DJSP DJS, P.A.?
25
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Form.
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(3376)
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MR. SCRUGGS:
Form.
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guy.
A
Q
A
Q
I was.
The DAL Group, LLC?
A
Q
A
Q
Registered agent.
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ra ud
I'm sorry.
Default Servicing?
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I was a busy
.S to
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25
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Yes.
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A
Q
A
Q
I don't recall.
they felt it would be better for me to step down. Inconsistent with counsel's direction, I voluntarily stepped down.
Q
2010, The Law Offices of David J. Stern, P.A. was the sole client of DJSP Enterprises BBI?
MR. SCRUGGS: A
.S to
that time?
pF
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at someday Timeos and it would include Default Servicing. Each of those entities had their own For example, Default Servicing on its
25
separate clients.
or
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Objection.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 123 of 277 122
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
represented PNC Mortgage and two or three other smaller companies. clients.
Q
A
Q
certain because there's some variables before the actual transaction closed.
Q
ur eF
agree with me that as of July 1st, 2010, The Law Offices of David J. Stern, P.A., Professional Title and Abstract and Default Services were the sole clients of DJSP Enterprises BBI?
MR. SCRUGGS:
or
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Objection.
.S to
what other clients did DJSP Enterprises BBI have besides those I just named?
ww w
pF
MR. TEW:
Same objection.
25
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Would you
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sole clients of DJSP Enterprises were Professional Title, DJS Processing and Default Servicing because they -- they are not, in any way, shape or form, clients.
Q
A
Q
When in January?
After the 15th.
A
Q
I don't know.
33.15 percent?
.S to
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or
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A
Q
At what point?
After January 15th, 2010.
25
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subsidiaries.
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course, it's DJSP Processing, because I don't know what DJSP, Florida is.
Q
All right.
$88 million in notes in exchange for the DAL Group obtaining the Stern businesses that we just referenced; is that correct?
A
Q
.S to
correct?
ww w
A
Q
25
pF
Yes.
And in exchange for that, you received
or
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Of
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 126 of 277 125
1
A I don't recall.
2
3
Q
A
4
5
Q
A
6
7
8
Q
that?
A
10
11 12 13 14 15 16
Q
point.
17 18
19
20
21
of 2010 did?
pF
Processing once it was established and born in January What was its role? What did it do?
22
23
24
.S to
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25
Uh-huh.
or
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taken.)
(Deposition resumed.)
Differ.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 127 of 277 126
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A On December 30th, 19- -- or 2010, the services
were rendered by
Q
prepare complaints.
occurred, DJS Processing was governed by a services agreement. Services agreement, of course, was a
negotiated document that defines services, compensation, facility agreement amongst other things.
ec los
ur eF
(877)
indicated that the way it used to be done by a single entity was no longer the case, there was no longer one entity. There were -- it was not a one entity
enterprise.
to do.
.S to
with the vendor being DJS Processing and the client, of course, being the Law Offices of David J. Stern.
Q
pF
of what Processing was to do and what the law firm was In essence, became a vendor/client relationship
Fine.
ww w
or
25
It cannot do that.
It was not --
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And it clearly
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They would
2009.
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127
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
The process
that came in, a gentleman by the name of Phil Cobb. So, Phil began to guide Processing to do things that were, in essence, fabulous, unprecedented, in terms of measuring by the matrix, better training, those sort of things.
Q
A
Q
Yes, sir.
A
Q
A four-fold.
Q
or
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.S to
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25
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A
Q
.co
Up
Why?
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2 3 4 5 6 7 8 9 10
11
A
Q
A
Q
Correct.
And using the same phones?
A yes, sir.
Q
A
Q
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12
13
pursuant to the terms in the services agreement, the HR functionality was outsourced from the law firm to DJS Processing, correct, yes.
Q
14 15 16 17 18 19 20 21 22 23 24
Same people?
A
Q
Absolutely.
Same director?
.S to
January 15th.
Q
ww w
pF
No, sir.
Chris Simmons?
Okay.
or
ec los
Different people.
25
MR. SCRUGGS:
Objection to form.
.co
And
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 130 of 277 129
2 3 4 5 6
7
bad question.
A
I
Q
A
Okay.
I
totally disagree.
Q
A
All right.
Okay.
8 9 10
11
Same people employed in a leadership role. He was employed before January 15th, 2010
Sam, right?
A
Q
12 13 14 15 16
17
Processing.
Q
Okay.
A
Q
19 20 21 22 23 24
A
Q
pF
18
So, I disagree.
I've tried to lose you a couple of Was there a finance
.S to
Okay.
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A
Q
25
difference.
or
I'm trying to --
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disagree.
That was a
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 131 of 277
130
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Okay.
A
Q
functionality.
Q
Accounts payable?
A
Q
Accounts payable.
Accounts receivable?
ec los
ur eF
Statement It was for both the law
(3376)
firm and for Processing and for Professional Title and for Default Servicing.
Q Okay.
ww w
.S to
the law firm in December of 2009 were still employed in the same building and in the same space at their same
24
A
Q
25
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or
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.co
I mean, we
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 132 of 277 131 1
was within the building?
2
3
4
5
But for efficiency, my understanding was that there were a couple of technicians on each floor for quick response.
7
8
9
10
11
MR. SCRUGGS: A
Norman, a CIO, highly compensated employee was brought in. Several people were let go, just like the
12 13
accounding department, a CFO, Kumar Gushani, was brought in. Esther was brought in to replace Shameeza. So,
14
15
16
17 18 19
20
Q
A
.S to
after --
21
22
23
24
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25
www.reifkingwelch.com
pF
Q
A
I don't know.
Changed phones?
Q
A
No -- I have no idea.
or
ec los
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ra ud
.co
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well?
A
Q
was employed by the Law Offices of David J. Stern as senior person that did soft -- that did the hardware. On or about January 15th, he became an employee of DJS Processing in a non-managerial, non-supervisory role. And given the changes, reported to Norman and Norman's group.
Q
Processing?
MR. SCRUGGS:
or
ec los
Objection.
ww w
.S to
of areas, or a whole host of individuals depending upon the nature of the department, certainly consisted with the services agreement that existed between the Law
25
pF
MR. TEW:
Same objection.
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ra ud
Form.
.co
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 134 of 277 133
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A January 16th, 2010, as the transaction
evolved, it was originally my plan for Cheryl to be the operations manager over enterprise, over everything.
became educated into new matters or new -- new ways to manage, greater technology, measuring by the matrix, stronger stronger management skills that Phil Cobb,
who came in as an initial COO, certainly as Rick Powers came in as the C -- as a subsequent COO.
ur eF
abundantly clear that neither Cheryl or even me on my best day could ever be an operations manager over all of those entities, quite simply because Cheryl didn't have the pay grade, expertise, knowledge, education, I'm not saying she couldn't learn it. So, while originally she
was the operations manager over enterprises, she subsequently became the operations manager over DJS Processing.
pF
was Processing by its definition and for the purposes of I don't know what date the
ww w
.S to
enterprise was taken off the table for her and the Processing placed as her pretty much sole responsibility
25
or
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ra ud
It became
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 135 of 277 134
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 meet with Cheryl Sammons on property unplanned?
A
If she
Cheryl worked with the heads of the other departments within DJS Processing and together they managed the day-to-day operation.
the Law Offices of David J. Stern pursuant to that services agreement, Miriam Mendieta and Beverly McComas would come in. Without violating the terms in the
services agreement, they work together to orchestrate the initially smooth running operation.
I asked you how often you would meet with Now, I'm going to ask you how often you
Cheryl Sammons.
would speak to Cheryl Sammons after January 15th, 2010? A If I spoke with her, it would have been a
.S to
want to let you know in case you get a call from ABC The rules were that if there
was a problem, a severe problem, I want to get to the client before the client got to me. on that did not happen all that much. Fortunately, early So, there were
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25
www.reifkingwelch.com
pF
or
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 136 of 277 135
1 2 3 4 5 three weeks because I was on the road, she had a different schedule, I had a different schedule, I had meetings.
6
7 8 9 10
11
A
Q
A
Q
Infrequently.
With regard to the 401(k) issue and contributions, after January 15th, 2010, are you aware whether or not the DJS Processing employees were able to participate in the Law Offices of David J. Stern, P.A. 401(k)?
12 13 14 15 16 17 18 19 20 21 22 23 24
A
Q
pF
.S to
A
Q
I'm sorry.
or
prior to going public -- going public in January 2010, would you agree with me that the volume of new business continued to rise?
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expectations in 2010.
Q
I said 2009.
A 2010.
Q
A
Over 2008?
Yes.
Q
A
Yes, sir.
hundreds of phone calls from people that your law office was foreclosing upon complaining that they had never been served their foreclosure notice?
A
Q
Told by whom?
Cheryl Sammons.
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A
Q
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know.
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a paralegal?
police and she lost her only child to her blind husband.
Q
the truth?
based on what I understand or understood her to say. I sit here today, my testimony is that I did not read her deposition.
ec los
because I knew clients would call, and Cheryl said David, she's a fruitcake, she got fired, she got
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escorted out by the police and to say how bad she is,
Which deposition?
How about the one in May of 2009?
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1
depositions.
2
3
No.
4
5
Yes, sir.
6
7
8
Q
A
Good question.
Your office.
9
10
11 12 13
borrower, borrower's address, loan number, UPB, anything that would merge into any pleading.
ec los
14 15 16 17
document saved us a lot of time, tremendously efficient. From the time that Cheryl and I created it, probably was two months, three months as Miriam started that I never really looked at a case sum again, and I'm sure that it
19
21 22
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20
balance. sports.
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24
Q
A
25
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What is UPB?
Well, in my profession, it's unpaid principal I guess, if you're playing basketball or
or
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work.
MR. TEW: A
No, I wouldn't.
would come to me as she had done in the past and I would rectify the situation by getting rid of clients or calling clients to tell them you can turn off the volume. Cheryl knew if there was a problem, she could And that's why they had pretty much carte
come to me.
blanche, no restrictions on salary, no restrictions on hiring, take whatever space you need to take, no budget. They had -- they had the best of all worlds.
Q
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on property?
interview each of the firms and to review our operation, kick the tires if you will. I am not aware of any other
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8
A
Q
not believe Fannie Mae auditors came on property. believe their audit was a mail away audit.
Q Okay.
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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
property in 2009?
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let me go back.
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on property?
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or
Any.
Yes, sir.
And did they let you know before they were
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do I
I don't
question.
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Q
A Q
Okay.
Okay.
knowledge, I wouldn't have any reason to do that and I would not do that. That would be Cheryl.
Q
A I did not.
Okay.
So, if it happened
Sure.
in fact, it happened, that would have -- Cheryl would have been the person at the top that would have authorized that behavior?
Processing --
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entities.
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25
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Yes.
Processing.
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That would be
To the best of my
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Yes, sir.
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codes off the Fannie Mae files replacing them with those
A
Q
I do not.
Ripping the sticker off and replace it with a The files are $3 and
SO-some odd cents, I -- it's been so long I know the price of them. But once the files were done because
they're so expensive, the items would be documented, it would be put into a manila folder and we would re-use the folder again for a brand new case.
Q
A
Q
remove the Fannie Mae files and put them into a remote back room?
A
Q
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MR. TEW:
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what I see in other states with other law firms and give them benefit of my knowledge of what I understand to
25
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of a different lender?
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standpoint, I would have been in attendance at that meeting, but that, again, was not an audit meeting.
There was a meeting where the higher ups at Fannie Mae came in and ask me to be in attendance as they were going by to see all of their large Florida firms. wanted to impress upon us the need to stay fully
ra ud
staffed, anticipations of huge, huge shadow inventory. Inventory that was in default but had not yet been referred for various reasons. And also to get my take
on what the issues may be for backup, if any, of files; HEF, HOFA, all Obama initiatives that slowed down the process.
Q
So--
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of any problems that the servicers are having, David, do you know if they are, you know, getting you what you need. Well, I can't tell you if they're getting us what
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As
positive meetings, all exciting meetings for growth and anticipation of volume. inventory.
Q
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Island
A room.
Q
A
Q
A
Q
.S to
November 2010.
Q
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www.reifkingwelch.com
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Why?
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And as items
or may not have been the reason for Fannie and Freddie pulling the plug at the end of the day. major reaction and political. time, I terminated her.
Q
I think it's a
Ballpark, November?
A
Q
guys about.
or
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I'm not.
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there were any issues or what needed to be taken if And Jeff, if And they
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Did I talk to Cheryl about her depo? How did it go. That's about it.
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specifics.
Q
25
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2
3
big deal for me because Jeff would have been present in those depos. And Jeff would have come if there were
4
5 6 7 8
problems and said these are the problems, or these are going forward with would be our best practices.
10
11
aware of them and what measures to take to -- to fix the issue, I would be made aware of. Nothing that I sat
12 13
down and said oh, my God, I'm going to read this deposition myself because I have Jeff.
Q
14 15 16 17 18 19 20 21 22 23
24
A
Q
Jeffrey Tew.
Jeffrey Tew, Tew Cardenas, attorney And from those depositions and
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everything good but I have some recommendations for best practices due to changing environments. And for the
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MR. TEW:
Cheryl Sammons' depositions, Jeffrey Tew of Tew Cardenas was her lawyer?
ur eF
(877)
have been Forest McSurdy from our firm or Michelle Mason or Donna Glaick, I'm not sure. That wasn't a I would
venture to say that Jeff was brought in at the request of Forest -- Jeff Tew was brought in at the request of Forest McSurdy depending upon the nature of the -- of the deposition or the nature of the case.
Q
2009?
.S to
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2010?
A
Q
25
www.reifkingwelch.com
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I don't.
I do not.
Were you made aware from Ms. Sammons that she
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I'm sorry.
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That's privileged.
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testified in April of 2010 that her signature does not mean the contents of the document she signed was accurate and truthful?
I'm sorry?
back. )
(Deposition resumed.) A
Q
9 10
11
12 13 14 15 16 17 18 19 20 21 22 23 24
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(877)
electronic registration, and -- and that, of course, was executed pursuant to a MERS corporate resolution empowering Cheryl and others to sign.
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power of attorneys from various clients, would have executed affidavits of indebtedness after their review of the contents of the affidavits pursuant to power of
attorney that were, of course, set out under the signature line.
Q
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5
certain documents doesn't mean that the contents of the documents are either accurate or truthful?
MR. TEW:
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
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you went public and the stock was issued, what was the trade price, approximate trade price?
A
Q
$8.81.
10 -- $10?
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A
Q
February of 2010?
Yes.
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percent?
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It was trading at --
$5-ish.
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when
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No.
A
Q
case filed?
A
Q
12
13
A
Q
Who's you?
Fair enough.
14 15 16 17 18 19 20 21 22 23 24
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I understand there was a press release made, but I don't If you say there's one done,
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Stern, P.A.
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(
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1 2 3 4 5
6 Q
Plaintiff's 1.
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
A there.
I don't mind.
MR. BERNSTEIN:
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what's been marked as Plaintiff's Exhibit 1 for identification purposes. will ask a question. Take a look at it and then I
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DJSP Enterprises, BBI announced that new referral business had decreased?
24
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Yes.
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the attorney general of the State of Florida began investigating your law office?
I'm sorry.
now been marked as Plaintiff's 2 for identification purposes. And ask you if you recognize that.
investigate -- new investigations against Law Offices of Marshall Watson, Shapiro & Fishman, Law Office of David
J. Stern.
12 13 14 15 16 17 18 19 20 21 22 23 24
on August 10th, 2010 the attorney general of the State of Florida began an investigation?
A Q A
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they started it, I just know when the release came out. Q
Okay. In August of 2010, were you made aware
by anybody that the AG was investing you, "you" being the law office?
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Okay.
All right.
were made aware that the attorney general's office had begun an investigation of your law office?
would know, somewhere around there, yes, definitely in the month of August.
Q
12
13
A
Q
Sorry?
Okay.
14 15 16 17 18 19 20 21 22 23 24
Specifically referring to paragraph five that begins with "Rick Powers". Let me know when you're ready.
A
Q
Okay.
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staffing changes?
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August 10th.
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population"?
MR. TEW:
Q
A
Q
Yes.
What does he mean?
the office that our legacy files, meaning they've been around for a while. and HOFA. Generally, on -- on hold for HEF
13 14 15 16 17 18 19 20 21 22 23 24
And Fannie and Freddie were pushing servicers So, we're seeing huge
numbers of files by the -- by the thousands coming off hold with proceeds. Hence, he saying that while we have
off of hold from HEF and HOFA and get those moving
.S to
previously.
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And let's move back to a question I asked you And I'll ask a better question.
Okay.
Would you agree with me that the Law Offices
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the volume."
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7
A
All right.
Let me direct
your attention down to the bottom of this press release, last paragraph.
8 9 10
11
A
Q
Okay.
12
13
Office of David J. Stern whose clients include all of the top 10 and 17th of the top 20 mortgage servicers in the United States many which have been" -- I'm sorry "customers of the law firm for more than 10 years. The
14 15 16
17
19 20 21 22 23 24
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Processing.
Q So, this is inaccurate?
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Same objection.
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Q
A
So, it's less than complete? I think it's complete. Okay. With investors? I understand it.
Q
A
A investors.
I'm sorry.
become made aware of the attorney general of the State of Florida's investigation into your law firm as to what they're investigating? A I have.
investigating is the creation of false legal documents? A document? False legal documents.
or
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Q
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Documents containing false information. I -- I'm -- I'm not aware of that. And they
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may be investigating it but I'm not aware if -- if that's one of their obligations in the business.
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24
you're aware of, whether or not they're investigating your law firm regarding inflated fees.
25
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Have you ever been
Other clients.
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other clients.
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A
Q
12 13 14 15 16 17 18 19 20 21 22 23 24
A that.
False mortgage assignments, I have not heard I don't know what a false mortgage assignment is.
information.
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aware of that.
Falsifying notarizations?
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that.
Q
investigating the law office for foreclosing on people without verifying the amount that is owed?
the affidavits.
Q
investigating the law office or you, individually, for paying kickbacks to banks?
A
Q
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MR. SCRUGGS:
or
press release.
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11
A
Q
Okay.
A
Q
Okay.
A
Q
It does.
12
13
I don't.
I don't.
14
15 16 17 18 19 20 21 22 23 24
A
Q
Absolutely not.
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Island Road?
A
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Rick Powers
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No .
No.
No.
No.
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Okay.
Okay.
MR. TEW: A
12 13 14 15 16 17 18 19 20 21 22 23
A
Q
A call.
.S to
of whether or not you said that DJSP Enterprises was the largest provider of processed services to the mortgage lending industry in the state of Florida?
pF
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MR. TEW:
I
24
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MR. TEW: A
Q
Wells Fargo, GMAC and Goldman Sachs were some of your top clients as of September 20l0?
A
Q
No.
A
Q
No.
and Fannie Mae were some of your top clients as of September 20l0?
A
Q
A for
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And you put the three of them together, therefore the answer is no.
25
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 163 of 277
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A
Q
Yes, sir.
Were you doing any work for GMAC?
A
Q
Yes, sir.
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A
Q
This--
these questions you -- unless it means the Law Offices of David Stern. MR. JAFFE: MR. TEW:
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David J. Stern.
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MR. SCRUGGS:
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(877)
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the following clients had been your clients, yours being the Law Office of David J. Stern since 1994, Bank of
25
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firm?
A
Q
No, sir.
In 1994, Bank of America, I don't think They certainly weren't our client.
Citigroup?
Okay.
A
Q
Citigroup?
A Stern?
Q
Yes, sir.
A
Q
1994.
HSBC?
pF
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call of September 2010, you held yourself out to represent all of the top 10 lenders?
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I don't recall what I said on that call. MR. TEW: Yeah. Same objection as you.
25
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America?
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is to you, that you said that the law office or DJSP enterprises represents all the top 10 lenders?
Same objection.
on that call that you expected growth to be at historical heights between 2012 and 2017?
I, David J. Stern, do not recall anything that I may have said hi, this is David
Q
that.
or
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25
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I do not.
Do you recollect if what documents, if any,
I don't.
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recollection as to what you were looking at and referencing during that call?
A
Q
At times.
relationship whereby services have retained law firms to handle both law firm functionality as well as servicer functionality. It results in increased volume, better
control over the files, closer relationships with the clients and it avoids payment of any outsourcing fees.
Q
Freddie Mac.
.S to
end of the phone call, the conference call, that one of the GSEs that was with us the other day in our office, they actually were there to kick the tires. Do you
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As I -- yeah, that's
have against themselves, generally attaches to the property. So, if you want to give somebody a credit
card, you're going to want to do a lien search to see if these people have any judgments or liens against them.
Q
A
Q
Yes, sir.
I don't recall.
or
and
.S to
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The September --
on that call.
Q I'm still -- I'm only talking about the
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25
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conference call, were you aware that two weeks later, approximately, Ms. Kapusta's deposition was being taken by the attorney general?
Sure.
A
Q
Sorry.
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or
no.
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us to be there.
There's no nothing.
release sent out, September 7th, a day before the investor conference call by DJSP Enterprises. I'm
25
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11
Discussions".
A
Q
A
Q
Okay.
All right.
investors by this press release that DJSP Enterprises believed file volume would increase over the third quarter?
MR. TEW:
12 13 14 15 16 17 18 19 20 21 22 23 24
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objection, I'll torture you, and then ask you to read, please, for the record, beginning with "As of" -- or "As a. "
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believed file volume would increase in the third quarter and we previously decided to maintain current staffing levels; however, file volumes continued to be delayed and existing staffing levels are not sustainable indefinitely."
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I'm sorry.
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3
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
volume hasn't come back or they continued to be delayed. And as such, the existing staff levels are not sustainable indefinitely.
Q
A call.
I don't recall what I said on the conference I didn't put these in envelopes and mail them out
to anybody.
Q
A
Q
Yes.
Right?
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Yes, sir.
Okay.
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this press release was obviously obtained before Could have been the day before?
September 7th.
Yes, sir.
Okay. My question was, did -- were you part
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of creating the data in any way that is contained in this September 7th press release?
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A
Q
That is correct.
A
Q
12 13 14 15 16 17 18 19 20 21 22 23 24
Reduce staff.
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include staff or could include office space or could include copiers or could include lack of efficiency.
Q In September -- as of September 7th, 2010, did
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I don't recall.
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6
You said everyone got this press release. I didn't get it.
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7 8 9 10
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I guess,
they'd go on the SEC website where press releases are released too, and it's there.
Q
12
13
You have to ask folks that or the I know at the time Chris Simmons
14 15 16 17 18 19 20 21 22 23
informational officer.
kept everybody abreast of where to go and what was going on and commonly-asked-questions. a Chris Simmons, not a David Stern. So, that was
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notes that, "A new press release has been made available
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11
Including investors?
A Bernstein.
Q
September 29th, Chase suspended referrals to the Law Office of Javid Day Stern. Javid?
12 13 14 15 16 17 18 19 20 21 22 23 24
A
Q
I got you.
David J. Stern.
A
Q
On September 29th?
Yes, sir.
idea.
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were fired?
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Investors.
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173
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technologies, et cetera.
Q
October 8th, 2010, Freddie Mac told Morgan Services to stop sending work to Stern PA?
A of that.
Q
On October 8th?
A
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Via what?
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174
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Q
(Deposition resumed.)
(By Mr. Jaffe) Let me rephrase.
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by 10 percent?
knowledge, that Fannie and Freddie pulled the files. And I can tell you that staff reductions were contemplated due to a whole host of things, from uncontrollable events, government intervention, robo-signing on behalf of pretty much every major bank out there.
MR. TEW:
aware of that?" A
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 176 of 277 175
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11
A
Q
2010?
A
Q
Yes.
How early?
A
Q
would be the first time you were animating where a discussion was had regarding staff reductions?
12
13
14 15 16 17 18 19 20 21 22 23 24
No.
reductions -- given the key words "staff reductions" -from the day Phil Cobb came on to the day Rick Powers succeeded him.
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January 15th, 2010 that I might want to consider Anytime after January 10th? Yes.
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reducing staff?
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A
Q
Yes.
A September
Q
tools; better training, measuring by the metrics and tremendous technology where efficiency's increased tremendously. And we would continue with staff to
handle legacy problems, issues, "volumes" being the keyword. But on a positive, given the technology and
the better training and holding people accountable, he was confident that we could reduce staff at some point in time.
Q
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keys to success on an ongoing basis would be to outsource labor for backoffice to the Philippines at
25
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A
Q
I have no idea.
2009?
A
Q
I don't recall.
Philippines?
A
Q
Sure.
to reduce expenses?
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necessary. role.
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I
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employee, absolutely.
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A Q A Q
No, sir.
to going paperless, We won't need -- there'll be no need for the 90-or-so file clerks running around. A Q A Q A Did I say that in my testimony today? No.
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meeting with regard to terminations was in November. So, obviously, my question's dealing with an October Is it fair to say you have no recollection being
date.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 180 of 277 179
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A
Q
In October?
Yes, sir. Or earlier for that matter.
Cheryl would have headed up that meeting or worked hand-in-hand with Chris Simmons and Rick Powers, quite simply because I would not know who's who, who needs to stay, who needs to go. know.
Q
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November 2010, the HR department was still operating off of one e-mail assistant?
MR. TEW: A
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conducted or carried out in October 21st, October 22nd, 2010 -- were just carried out by group meetings and
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I remember
remember Rick Powers or Chris Simmons reaching out to an outside firm for some guidance on how to best terminate a number of people, a number of people where you can't bring them all in one room and say, "I'm sorry, but the firm's gained efficiencies. It's time to have some So, how it
cuts, and unfortunately, you're the cuts". ultimately got done, I understand. was letter of notification. that I know.
Q
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the list?
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Same objection.
I don't recall.
(By Mr. Jaffe) But your name's on the bottom of
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www.reifkingwelch.com
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 182 of 277 181
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3
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5
6 7
8
A signature.
Okay.
10
11
Q
A
13
14
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17 18
Q
A
19
20
21 22
23
24
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what the business will look like in the near future. So, due to loss of business, we regret to inform you
25
www.reifkingwelch.com
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8
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A
Q
Right.
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hopeful that given the promises from clients that volumes would pick up, Fannie Mae coming in the office and saying, "Be prepared for the shadow inventory", that that volume would come back.
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files.
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when?
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America and Countrywide merged or Bank of America acquired Countrywide, they changed their system. a result of that system conversion, half of our And as
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MR. TEW:
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183
2 3 4 5 6
7
When?
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8 9 10
11
2010, DJSP Enterprises sends out a press release announcing that as of October 22nd, the total number of layoffs were now approximately 300?
13
MR. TEW:
Q
14 15 16
17
A
Q
I don't recall.
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number was.
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I have no knowledge.
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bounced back.
Q On October 25th, 2010, Mark Harmon resigns off I mean, is that
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 185 of 277
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A
Q
Four.
Who were they?
Kumar Gushani.
Q
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that trust.
about the only one -- I'm sorry, Jeff -- that I Mark does what I do or did in Massachusetts,
Rhode Island, New Hampshire, so he has tremendous inside expertise. He kind of gets it, he understands. Kumar
Q
A
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Kumar?
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Two days later, October 27th, 2010, the
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A
Q
I do not.
Enterprise and your law office default on the lease at 900 Southpine Island Road; is that correct?
A
Q
Yes, sir.
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Q You're just not sure what date it was?
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A
Q
It doesn't.
Does not?
A
Q
It does not.
recollection of having any other meetings regarding further staff reductions and the necessity for that?
8 9 10
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(877)
the unexpected catastrophic event occurred, there was a need to have a meeting, but I don't recall at what point in time that was.
Q
13
14 15 16
17
just reference?
Fannie Mae, Freddie Mac coming in and And then the rest of
19 20 21 22 23 24
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following suit.
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gone.
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,
2 3 4 5 6 7
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scripts?
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instances, myself, if they didn't know what was going or if they needed a question answered.
Q
investor calls, you still know what's happening with the business?
A
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earning calls and the investors or the world, whoever elects to participate in that call is made aware of the
25
day-to-day happenings.
www.reifkingwelch.com
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institutional knowledge of your own business far in advance of those calls and reports for that matter.
A and says,
Sure.
60,000"?
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And they go, "No, 600,000 shadow inventory in the State of Florida".
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know, as a result of this unforeseeable catastrophic event, that there obviously had to be significant lay offs because there's nothing left.
or
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Whoever thought?
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files are still sitting in boxes. MR. SUGGS: Could you read back the prior
question? (Thereupon, a short discussion was had off record.) (End of Volume I)
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Right.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 190 of 277
1 DATE: TO: April 29, 2011 David J. Stern C/O Tew Cardenas, LLP Jeffrey Tew, Esq. Four Seasons Tower 15th Floor, 1441 Brickell Ave., Miami, Florida 33131
4
5 6 7 8 9 10 11 12 IN RE:
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.S to
Please take notice that on April 25, 2011, you gave your deposition in the above-referred matter. At that time, you did not waive signature. It is now necessary that you sign your deposition. You may do so by contacting your own attorney or the attorney who took your deposition and make an appointment to do so at their office. You may also contact our office at the below number, Monday - Friday, 9:00 AM - 5:00 PM, for further information and assistance. If you do not read and sign the deposition within thirty (30) days, the original, which has already been forwarded to the ordering attorney, may be filed with the Clerk of the Court. If you wish to waive your signature, sign your name in the blank at the bottom of this letter and return it to us.
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Very truly yours, SAMANTHA HANSTEIN Reif King Welch Legal Services 954-712-2600
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Renae Mowat, Nikki Mack, Ark1ynn Rahming, and Quenna Humphrey individually and on behalf of all other similarly situated individuals v. DJSP Enterprises, Inc., a Florida Corporation, DJSP Enterprises, Inc., a British Virgin Islands Company, Law Offices of David J. Stern, P.A., David J. Stern, individually, DAL Group, LLC, a Delaware LLC, DJS Processing, LLC, a Delaware LLC, Professional Title and Abstract Company of Florida, a Delaware LLC, and Default Servicing, LLC, a Delaware LLC 10-62302-CIV-UNGARO
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 191 of 277
1 -------------------David J. Stern
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10
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SIGNATURE
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 193 of 277
CERTIFICATE OF REPORTER
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I, SAMANTHA HANSTEIN, do hereby certify that the foregoing testimony was taken before me; that the witness was duly sworn by me; and that the foregoing
I further certify that I am not a relative or employee or attorney or counsel of any of the parties, or a relative or employee of such attorney or counsel, nor financially interested in the action. Under penalties of perjury, I declare that I have read the foregoing certificate and that the facts stated herein are true.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 194 of 277
CERTIFICATE OF OATH
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I, the undersigned authority, certify that DAVID J. STERN personally appeared before me and was duly sworn.
Witness my hand and official seal this 25th day of April, 2011.
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Samantha ein, Court Notary Public, State of Florida Commission No.: EE 070089 Commission Expiration: 03/03/2015
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 196 of 277 1
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yeah 15:9 21 :20 23:1 34:21,21 56:2558:24 70:574:9 75:1977:23 86:594:25 100:4106:1,1 106:1111:1 138:25 146:1 163:24166:4 178:14188:9 year 8:13 9:7 10:1 17:855:2 63: 1,4,20,22 64:2,1066:2 67:1 80:10 82:17,18 years 8:612:11 15:12,13,14 16:519:921:1 21:823:10,21 23:23,2533:5 35:3,13 49:5 51:2162:2 63:2464:4 65:7,15 69:25 71:872:12,19 73:1,281:25 104:25107:16 155:15 Year's 36:4 yelling 41 :22 82:21 York 26:4 $ $10149:11,13 $100166:16 $12.50 149: 13 $15149:13 $150166:16 $3142:7 $555:14 $5-ish 149:19 $55125:2 $58.5124:12,23 $755:13,14 $8.81149:10,12 $80125:7 $88124:13 125:4 0 03/03/2015 193:15 070089 193: 15 1 15:548:21 53:20151 :6,7 151: 14 153: 13 lst9:1225:4 35:836:2 38:1650:17 69:23121:13 122:13,20 185:6,11,19 186: 1,6 1,200160:15 1,60054:17 1-80013:9 1:0014:6,7 75:18 1023:2435:16 36:1955:24 62:279:4 87:25 143:18 143:24149:11 155:13,15 163:22164:3 173:15174:5 10th 152:1,15 153:3 175:25 10-year72:24 10-62302-CIV... 1:86:8189:11 10:001:20 10:066:5 10:3014:13 10081: 1 89:5 10003:479:18 10013:1 11th 152:24 173:10 1255:2471 :2 12th 152:24 12,000-person 96:8 12:0575:14 120074:20 1212:10 13 11 :21 17:22 71:2 13th 152:25 13142:10 1435:16 14th 173:14 174:4 14,00096:7 14-year-old 19:18 14412:20189:4 15th 2:20 71:12 71:13,14,19 105:11,14,19 105:20115:17 116:14117:13 117:19118:4 118:16119:2,6 119:10120:3 120:24123:14 123:25 124:10 124:19128:21 129:9,13 131:8 131:18 132:8 132:11,15 133 :25 134: 15 135:3,12 149:21 175:21 175:24 177:7 189:4 15,00072:9 15092:23 1515:5 1525:6 1585:8 16th 125:22 132:25133:1 1735:13 65:15 17th 155:13 18092:22 1815:9 1935:13 36:16 126:1 190178:16 196013:15 1975:10 198179:20 1980s 36:18 19828:16 19868:229:15 10:5,21,22,25 13:2271:11 198710:7,21 198939:4 42:4,6 42:1943:21 19909:18 10:2,3 11:933:23 55:6 1990s 36:1847:8 19919: 10 33 :23 35:1 46:15 199246:15 199335:4,25 36:138:541:7 41 :1042:11,12 42:1943:22 47:14 19949:1325:4 35:936:2 38:3 38:1647:11,14 47:2450:17 52:253:11,25 54:7,2358:10 58:1559:10 65:10 66:2,3,6 67:7,9 69 :23 75:3 91:7 92:13 162:25 163:7,15,19 199555:666:9 1995-ish 54:24 54:25 199655:6 57:3 58:2,1559:22 59:23,2460:23 66:11,1667:3 71:11,11 72:23 72:25 199766:1667:3 199862:23 63:3 63:21 64:2 67:17,1974:5 199964:274:5,5
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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA RENAE MOWAT, NIKKI MACK, (;::> ARKLYNN RAHMING, and QUENNA HUMPHREY individually and on behalf of all other similarly situated individuals, Plaintiffs,
v.
Defendants.
or
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TAKEN ON BEHALF OF THE PLAINTIFFS APRIL 25, 2011 10:00 A.M. - 5:13 P.M.
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REIF KING WELCH LEGAL SERVICES 888 EAST LAS OLAS BLVD., SUITE 508, FORT LAUDERDALE, FLORIDA 33301 SAMANTHA HANSTEIN, Court Reporter
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DJSP ENTERPRISES, INC., a Florida Corporation, DJSP ENTERPRISES, INC., a British Virgin Islands Company, LAW OFFICES OF DAVID J. STERN, P.A., DAVID J. STERN, individually, DAL GROUP, LLC, a Delaware LLC, DJS PROCESSING, LLC, a Delaware LLC, PROFESSIONAL TITLE AND ABSTRACT COMPANY OF FLORIDA, a Delaware LLC, and DEFAULT SERVICING, LLC, a Delaware LLC,
VOLUME II
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On behalf of the Defendants: TEW CARDENAS, LLP JEFFREY TEW, ESQ. FOUR SEASONS TOWER 15TH FLOOR, 1441 BRICKELL AVE., MIAMI, FLORIDA 33131 (305) 536-1112 jt@tewlaw.com DJSP ENTERPRISES, INC. STEPHEN J. BERNSTEIN, ESQ. 900 SOUTH PINE ISLAND RD., SUITE 400,
or
REAL ESTATE & INVESTMENT LAW CHANDRA PARKER DOUCETTE, ESQ. 621 NORTHWEST 53RD ST., SUITE 240, BOCA RATON, FLORIDA 33487 (561)995-1490 chandra@chandralaw.net
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RAPOPORT LAW GROUP DAWN M. RAPOPORT, ESQ. 1314 EAST LAS OLAS BLVD., SUITE 121, FORT LAUDERDALE, FLORIDA 33301 (954) 712-7457 dawn@rapoprtlawgroup.com
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FARMER, JAFFE, WEISSING, EDWARDS, FISTOS & LEHRMAN, PL STEVE JAFFE, ESQ. 425 NORTH ANDREWS AVE., SUITE 2, FORT LAUDERDALE, FLORIDA 33301 (954)524-2820 steve@pathtojustice.com
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BERGER SINGERMAN FRANK SCRUGGS, ESQ. 350 EAST LAS OLAS BLVD., SUITE 1000, FORT LAUDERDALE, FLORIDA 33301 (954)525-9900 fscruggs@bergersingerman.com
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INDEX OF EXAMINATION
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3 WITNESS: David J. Stern
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5 6 DIRECT EXAMINATION By Steve Jaffe, Esq.
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INDEX TO EXHIBITS
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Exhibit Description Press release dated July 27th
4 5
6 7
8
3
1
Press release that announces new investigations against Law Offices of Marshall Watson, Shapiro & Fishman, Law Office of David J. Stern
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David, I think I'm going to cry as I was wiping tears away. Anytime someone wanted to see me, I made myself As far as giving termination notice,
accessible.
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I'm sure.
A accolades.
Q
I'm sure.
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(877)
Doing it personally is
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the time of these mass layoffs, is it fair to say that DJSP Enterprises had accounts receivable in excess of $50 million?
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money to come.
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I don't recall.
www.reifkingwelch.com
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go out earned, but the bill yet to be sent, accounts receivable also?
A
That is correct.
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millions?
A
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11 yes.
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MR. TEW:
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going to get into financials. that's relevant. MR. JAFFE: MR. TEW:
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you gave a couple of examples when I asked you what you What do you mean by
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finances.
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gist of what kicked off robo-signing was a GMAC case in Maine, the State of Maine, where the GMAC employee that
was responsible for executing affidavits was deposed by borrower's attorney. And the gist of the depo that
created this robo-signing concept was borrower's counsel asked Jeff Stephens -- well, according to your
reviewed it, and he came back and said, well, no, I didn't. The attorney was a little bit dumbfounded while And then
12 13 14 15 16 17 18 19 20 21 22 23 24
a whole new line of questioning ensued, how many of these do you do?
Hence, in my mind, the term "robo" was the notary there at the time and the answer was no, no, no, no. Then
Bank of America had the issue and then PNC had the issue and a whole host.
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the referral process until the clients made certain that Now, keep in mind that
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it; and if it needs to be notarized, notarize it in the So, it caused every lender to
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MR. TEW:
office?
present in front of the attorney as the attorney's pen hit the paper.
Q
Cheryl Sammons?
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a notary or not.
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I don't know if Cheryl was present in front of I only know that there are allegations
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I am aware of that.
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knowledge.
Are you aware of any paralegals that alleged Cheryl Sammons' name? I'm
A
Q
Of course not.
allegations that Cheryl Sammons was signing between 400 and 1,000 affidavits a day at certain times?
MR. TEW: A
Q
MR. TEW: A
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MR. TEW: A
Q
Which acts?
a day, working unbelievable hours and so busy that she had other people sign her name.
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MR. TEW: A
Q
Of course not.
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much at work for her to sign that there was no way she could actually read and verify what she was signing?
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Okay.
No?
No.
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All right.
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Q
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I
of seeing that?
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-- I
I don't have any recollection of seeing it. if I see it, then I will recognize it or I
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Okay.
I don't recall and I don't know if it's -It's okay. I think we're at 5.
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about Cheryl.
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recognize it.
Q
A
look at Plaintiffs' Exhibit 5, which I represent to you to be a November 4th, 2010 mass e-mail. recognize it? Do you
I do.
A
Q
Yes, sir.
Okay.
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I had the pleasure of counting them. I'm
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with anyone to create a list of people that was subject to this termination?
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familiar with these people, and of them, I would not be familiar with. As this unfortunate unforeseeable
catastrophic event occurred, given the ramifications, Cheryl was unable to help make selections.
Q
Because?
A in
Because from a physical standpoint, she was She just didn't think it was
going to happen.
Q
she was terminated from Processing with the intent that she be terminated from the law firm shortly thereafter once we had the benefit of her knowledge on who should stay.
Q
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the time, we contemplated the transaction and put together the services agreement. We decided that we
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got Rick, I've got Chris, I've got Cheryl who are
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responsibilities?
public, you're more involved in the day-to-day operations of your law firm than you were the day after you went public?
Objection to form.
A
Q
No.
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Correct.
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10:30 a.m.
Q Tell me what time the employees', all 435 of
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Processing.
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 245 of 277 201
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If it's not in the letter, I don't know. You will. Keep looking. Page -- the last
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page.
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11:30 a.m.
Q
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e-mail?
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I did. Okay.
Q
A
That is you.
Well, that's me as whatever capacity I was in. Does i t say that? No, it doesn't. Okay.
Q
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Q
From HR -From HR. from you, the CEO of DJSP Enterprises and
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 246 of 277 202
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time?
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the time?
A firm.
Q e-mail
Correct.
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Okay.
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Okay.
-- that HR sent.
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Okay.
So, my question
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happen in reality?
MR. BERNSTEIN:
clarifying note that MR. JAFFE: Yeah, you're not being deposed
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first sentence that -- actually, why don't you read the second sentence. A
Q
paragraph. A
I'm sorry.
In
Q
A
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Okay.
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75 percent of referral business has been reduced over the last six months. And now by November 4th, it's up
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contents of the e-mail, did you have any input in creating the content? A I asked to see the letter once it was drafted,
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and I recall making a couple of changes in particular. I don't remember what I changed, but I did see it and I Once I gave those
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reports to confirm that. Based upon your review of the e-mail, the
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Did I understand
today, I don't know if this included the law firm, DJSP, DJS Processing or DJSP, what would have been DJSP, or other DJSP Enterprises such as Default Servicing and Professional Title and Timeos.
Q
Right. So--
A
Q
A
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That is correct.
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every floor collecting all employees' paperwork, company computers -- excuse me -- cell phones, firm files, law firm records?
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I don't know.
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Miriam Mendieta.
A
Q
Okay.
she is in there, if that actually meant she was terminated, she may have been also Processing as well as the law firm.
Q
have been receiving two checks as well, one from the law firm and one from DJS Processing?
A
Q
That is correct.
She would work with certain staff, be there to We felt that her salary -- and
I'm not sure if it panned out that way, but the original
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process was that part of her process should be bourn by Processing if she is going to be working with Processing, giving them direct oversight or whatever the
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Of course.
aspects of Processing?
A
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Right.
law firm?
A
Q
As to non-legal work.
A
Q
Yes.
A
Q
Absolutely.
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said, I think I heard you say Sam was employed both by the law firm and by Professional Title and Abstract at the same time.
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It's possible.
And that's what you think?
At the end of
the day, given the magnitude of the transaction, if Sam at -- ultimately came over or not, that's -- you know, certainly, he sent over an interrogatory and Jeff can get it answered.
Q
lawsuit?
is that you feel that Processing, DJSP Enterprises wrongfully terminated its employees in violation of WARN and that I'm the mastermind that created it, and I said at this public company to defraud the world and you want to get into my deep pockets as well as the law firm. That's my understanding of this lawsuit.
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Okay.
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MR. TEW:
Well -- but it's too good, Jeff. MR. TEW: Okay. No. I can make it
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A
Q
then.
whether or not anybody on behalf of DJSP Enterprises sent a WARN notice to Tallahassee in November?
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Please.
the copies -- you are aware a letter was sent, you're just not aware what date it was; is that correct?
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That's correct.
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(By Mr. Jaffe) I would represent to you one, two -- three pages. Tell me if you
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A
Q
A
Q
and two-page memo, I'm going to call it, before it was sent out to Tallahassee?
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I did not.
Exhibit 3 -- or Exhibit 6?
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Okay.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 254 of 277 210
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A Miriam and Beverly would have selected those
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anyway.
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Correct.
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them, and then we had some issues with Cheryl making those selections. So, they brought it, really, to me And I said, it's not what I I know very few
of these people, and the people that I do know may not be the people that need to be kept. So, I suggested
16
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that perhaps they go to Cheryl's managers and have Cheryl's managers help make the decisions because at the
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that would have to choose the right people. how the DJS Processing selections were made.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 255 of 277 211
1 2 3 4 5 6 7 8 9 10 whatever, March, I have something like that, and they I didn't know any of the attorneys or very few of the attorneys, so I wouldn't have the -- where at all to know who should stay or who shouldn't stay.
sort of what Miriam's last day was, but the need to cut was not pushed back with Miriam or -- and/or Bev as it was with Cheryl.
Q
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Maybe 20.
didn't know.
2006, but anyone that came after that, I just wasn't what I did.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 256 of 277
212
1 2 3 4 5 6 7 8 9 10
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to go and they needed to go immediately. reality was that with would fall back on me.
The -- the
them off Processing of the public company ASAP, make them aware of that. They would then be -- continue to And after a week, they need
unfortunately, they have the knowledge that -- a lot of them we didn't get, as Steven said, but you're able to do it without them.
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or was it you start with these most expensive people and work down?
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 257 of 277 213
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correct?
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Offices of David J. Stern and they worked for Timeos because Professional Title had been pushed over to Timeos.
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Sure.
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question was, the letter does not identify that it's being sent by either DJSP Enterprises, Florida or DJSP Enterprises, BVI, correct?
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I understand.
elementary.
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Enterprises"?
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Enterprises, BVI.
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So, my
Objection.
Okay.
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layoff?
I don't know.
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I don't recall.
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 260 of 277 216
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I'm shutting it down. How soon? Not soon enough. Why do you say it like that? It's done, it's over.
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Q
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6
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this anymore.
finds a way to make success and people get thrills of seeing them come crashing down, not the American dream, not the way I am. June 30th is a -- is a -- is it
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existing files we have, we're substituting out or getting clients to get new counsel to substitute out. So, June 30th, we're done.
14 15 16 17
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as of March 31st that we'd no longer be working with them, and then that's it.
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A are.
Q
I see them every day that I'm in the office. MR. JAFFE: I believe that we're done, but I
do want to take a break and make sure that we're done before I officially say that. Thanks for your
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my copy.
Then
Okay.
THE COURT REPORTER: MR. JAFFE: want paper. THE COURT REPORTER:
Bye-trans?
And standard delivery, would that be all right? MR. JAFFE: Yeah.
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(Deposition concluded at 5:13 p.m.) (Reading and signing of the deposition by the witness has been reserved.)
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MR. TEW:
Send me
Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 263 of 277 219
1 DATE: TO: April 29, 2011 David J. Stern C/O Tew Cardenas, LLP Jeffrey Tew, Esq. Four Seasons Tower 15th Floor, 1441 Brickell Ave., Miami, Florida 33131
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IN RE:
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Please take notice Lhat on April 25, 2011, you gave your deposition in the above-referred matter. At that time, you did not waive signature. It is now necessary that you sign your deposition. You may do so by contacting your own attorney or the attorney who took your deposition and make an appointment to do so at their office. You may also contact our office at the below number, Monday - Friday, 9:00 AM - 5:00 PM, for further information and assistance. If you do not read and sign the deposition within thirty (30) days, the original, which has already been forwarded to the ordering attorney, may be filed with the Clerk of the Court. If you wish to waive your signature, sign your name in the blank at the bottom of this letter and return it to us.
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Very truly yours, SAMANTHA HANSTEIN Reif King Welch Legal Services 954-712-2600
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Renae Mowat, Nikki Mack, Arklynn Rahming, and Quenna Humphrey individually and on behalf of all other similarly situated individuals v. DJSP Enterprises, Inc., a Florida Corporation, DJSP Enterprises, Inc., a British Virgin Islands Company, Law Offices of David J. Stern, P.A., David J. Stern, individually, DAL Group, LLC, a Delaware LLC, DJS Processing, LLC, a Delaware LLC, Professional Title and Abstract Company of Florida, a Delaware LLC, and Default Servicing, LLC, a Delaware LLC 10-62302-CIV-UNGARO
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SIGNATURE
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 266 of 277 222
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF FLORIDA SOUTHERN DISTRICT CERTIFICATE OF REPORTER
the foregoing testimony was taken before me; that the witness was duly sworn by me; and that the foregoing pages constitute a true record of the testimony given by said witness.
I further certify that I am not a relative or employee or attorney or counsel of any of the parties, or a relative or employee of such attorney or counsel, nor financially interested in the action. Under penalties of perjury, I declare that I have read the foregoing certificate and that the facts stated herein are true.
r. . ..,~~~ .. . ..
SAMANTHA ANSTEIN
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 267 of 277 223
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CERTIFICATE OF OATH
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I, the undersigned authority, certify that DAVID J. STERN personally appeared before me and was duly sworn.
Witness my hand and official seal this 25th day of April, 2011.
Samantha Han ein, Court Notary Public, State of Florida Commission No.: EE 070089 Commission Expiration: 03/03/2015
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 269 of 277 1
A able 212:12 above-referred 219:14 absolutely 195:1 196:18206:13 Abstract 33323:12 206:23219:10 accessible 191:8 accolades 191:13 accounts 191:16 191:18192:1,5 192:12 accurate 203: 16 action 222: 13 acts 196:6,9 actual 193:8 add 202:21 address 198:14 214:10 administrator 213:12 advised 216: 13 affidavit 193:8 affidavits 193:4 194:17195:10 195:14196:10 agree 196:25 198:17200:8 209:19212:23 214:3,15 agreement 199:24 allegations 194:21,23 195:9196:2,2 alleged 195:4 America 193:16 American 216:9 amount 192:1 ANDREWS 33324:5 and/or210:25 211:6 anniversary 215:14 announce 203:4 announces 33327:6 answer 193:15 205:18 answered 207: 8 207:20 anybody 208:7 anymore 216:7 Anytime 191:7 anyway 210:4 APPEARANC ... 33324:1 appeared 223:7 appointment 219:16 appropriate 192:18 April 33323 :20 219:1,13 222:17223:11 areas 196:1 Arklynn 33323:3219:6 ASAP212:6 asked 192:22 193:7203:22 210:12 asking 192: 17 aspects 206: 1,4 206:6,9,12 assignments 194:17 assistance 219:18 assisted 199:21 199:22,22 assume 204: 1 attorney 193:5 193:10194:12 219:15,16,19 222:11,12 attorneys 211:2 211:3 attorney's 194:12 August 192:25 author 197:16 authored 208:1 authority 223:6 Ave 33324:5,20 219:4 aware 193:25 194: 15,23,25 195:4,8,12,13 195:18,24 196:14207:25 208:4,6,13,14 212:7213:25 214:18 a.m33323:20 200:23 201:5 B baby215:17 back 193:9 197:5201 :9 203:17204:1 210:22 211:6 212:3213:17 backstabbing 216:7 Bad209:17 badges 200:25 201:4,18 Bank 193:16 based 203: 19 206:21 basis 207:9,11 began 193:1 behalf33323:4 33323:19 33324:3,18 208:7211 :23 212:24219:6 believe 211 :10 214:17217:8 benefit 199:15 BERGER 33325:3 Bernstein 33324:24 191:5202:21 202:25 best212:21 Bev 199:22 211:6212:14 Beverly 21 0: 1 210:25,25 beyond 206: 19 216:21 bill 192:5 billed 191 :21,22 bit 193:10 blank219:20 blind 200:20,20 blogs 195:17 BLVD 33323:22 33324:10 33325:4 BOCA33324:15 borrower's 193:5,6 bottom 219:20 bourn 205:20 break217:9,13 Brickell 33324:20 219:4 British 33323: 10 219:8 brought 210:11 building 202: 18 205:1 business 198:25 203:10,14 215:24216:7 busy 196:11 BVI212:25 213:10,21 214:1,5,20 C call 209:7 capacity 201:13 Cardenas 33324:19 219:3 case 33323:8 193:2205:23 catastrophic 192:21 199:4 202:15 caused 193:23 Cc220:2 ceased 200:16 cell 204:22 CE0201:23 202:1 certain 192: 1 193:18195:10 205:17206:1,3 206:6 certainly 206: 16 207:7 certificate 222: 1 222:15223:1 certify 222:5,10 223:6 Chairman 215:11 CHANDRA 33324:14 chandra@cha ... 33324:16 changed 203 :24 changes 203:23 checks 200:2 205:13 Cheryl 194:19 194:20,24,25 195:5,9196:5 196:16,23 197:1 199:1,5 199:17206:16 210:9,10,18 211 :7,22,25 212:13 Cheryl's 210:16 210:17,19 choose 210:20 Chris 199:1 204:2208:1 214:15,18 215:6 circulated 204: 1 circumstances
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 270 of 277 2
212:5 clarifying 202:22 clearly 214:12 Clerk 219:20 client 193:21 clients 193:1,18 216:12,13 collecting 204:21 combined 192:8 192:10 come 191 :12,23 196:16216:9 comments 203:25204:1 Commission 223:15,15 company 33323:10,13 204:21207:15 212:6219:8,10 complain 196:19 complaint 193:21 complaints 193:20 computers 204:22 concept 193:6 194:16 concluded 218:17 conference 195:20 confirm 203: 18 constitute 222:8 consulting 210:4 contact 217:6 219:17 contacting 219:15 contained 209:19 contains 205:3 contemplated 199:23 content197:17 203:21 209:4 contents 203:20 208:17 continue 212:7 copies 208: 13 copy218:1,2 corporation 33323:10 204:17219:7 correct 192:7 198:15200:17 202:3,6,16 204:16,19 205:15208:14 208:15210:4,5 213:1,10 correctly 204:5 counsel 33324:1 193:6214:11 216:12222:11 222:12 counting 198:20 couple 192:22 203:23,25 217:11 course 192:3 195:7 196:16 206:2,18 Court 33323: 1 33323:25 217:22,25 218:4,6,9,12 218:16219:20 223:14 crashing 216:9 create 198:22 created 193:6 207:14215:17 creating 203:21 . cry191:6 cut211:5 cuts 212:15 C/0219:2 D D217:4 DAL 33323:11 219:9 date208:9,10,14 215:15,18 219:1221:25 dated 33327:5,9 David 33323: 11 33323:11,18 33326:3 33327:7191 :6 212:13 213:4 219:2,8,9 220:1 223:7 DAWN 33324:9 dawn@rapop ... 33324:12 day 195:10,14 196:11200:10 207:5210:18 211 :5,12,12 212:2217:7,18 222:17223:11 days 209:12 218:12219:19 day-to-day 195:25200:9 200:15212:4 deactivated 200:25201 :4 201:18 deal 204:3 Dear219:12 decided 199:24 209:15 decision 211 :25 decisions 210: 17 declare 222: 14 decreased 203:10 deep207:16 Default 33323:13 204:10 219:10 Defendants 33323:14 33324:18 define 191:18 215:3 definitely 212:18 defraud 207:15 Delaware 33323:12,12 33323:13,13 219:9,9,10,11 delivery 218:10 denial 199:8 department 198:15204:15 depends 194:2 depo 193:5 deposed 193:4 202:23 deposition 33323:17 217:15218:17 218:19219:14 219:15,16,18 depositions 193:1 Description 33327:3 designate 195:14 desire 216:6 development 208:16209:3 different 204: 14 direct 33326:6 205:22 director214:15 214:19,19 discoveries 192:17 distinguish 200:4204:15 distinguishing 200:7 DISTRICT 33323:1,1 222:3223:4 DJS 33323:12 204:9205:14 206:14210:7 210:21213:3 219:9 DJSP 33323:10 33323:10 33324:23 191: 16, 19 199:18201:23 202:1,14204:8 204:9,9,10 207:12208:7 212:24,25 213:9,9,11,17 213 :20,23 ,25 214:4,4,9,12 214:19215:11 216:16,22 217:2219:7,7 Doing 191:9 DOUCETTE 33324:14 217:19 drafted 203 :22 dramatically 211:17 dream216:9 dual 206:14 due 202:15 203:5 duly 222:7 223:8 dumbfounded 193:10 Dykema 206 :20 E earlier 200: 16 earned 192:5 EAST 33323:22 33324:10 33325:4 EDWARDS 33324:4 EE223:15 either 213:9 element 194:2 194:14 elementary 213:15 employed
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 271 of 277 3
206:14,21,22 211:9216:16 216:19,22 employee 193:3 199:25204:15 204:18222:11 222:12 employees 200:24204:4 204:21207:13 209:15210:6 213:2217:2,4 encompasses 194:6 ended215:18 ensued 193:12 entered 197:24 208:22 Enterprises 33323:10,10 33324:23 191:16,19 199:18201:23 202:1,14 204:10207:12 208:7212:25 212:25213:9 213:10,12,18 213 :21 ,24,25 214:4,4,9,12 214:20215:11 216:16217:2 219:7,8 entities 213:13 entity 214:23 ERRATA 221:1 Esq 33324:5,9 33324: 14, 19 33324:24 33325:3 33326:6219:3 220:2,3,3 essentially 204:2 ESTATE 33324:13 event 192:21 199:4202:16 EXAMINATI ... 33326:1,6 examples 192:22 excess 191 :16 excuse 204:22 209:11 execute 193:21 executed 194:18 executing 193:4 Exhibit 33327:3 197:24198:2 198:10208:20 208:22209:11 209:11 212:23 EXHIBITS 33327:1 exist214:9,13 existing 216: 11 expect215:17 expensive 212:16 Expiration 223:15 express 196:5 ext33325:1 e-mail 33327: 10 197:6,17 198:11,14,14 200:21201:10 201:17202:9 203:1,13,19,20 204:3,14205:3 205:7211 :21 215:9218:5 e-trans 218:6,15 families 191:2 far 191:8 FARMER 33324:4 fast212:10 feel 207:12 felt 205: 18 filed219:19 files 195:19 204:22216:11 finances 192:19 financial 192: 17 financially 222:13 financials 192:14 find 195:16 finds 216:8 fired201:16 210:23 firm 192:12 199:12,14,18 199:20,21,25 200:10201 :24 202:4,7204:8 204: 18,22,23 205:11,14 206:7,10,12,15 206:18,23 207:16211 :24 212:8 firms 191:4 192:18 first203:2 209:10212:19 212:19214:8 Fishman 33327:7 FISTOS 33324:4 floor 33324:20 204:21 219:4 floors 195 :20 Florida 33323:1 33323:10,13 33323:23 33324:6,11,15 33324:21 33325:5 193:20212:25 213:9,24214:1 214:4,9 219:5 219:7,10222:3 223:4,14 foregoing 222:6 222:7,15 form 194:5 195:11,15,23 196:8,13,22 200:12208:3 214:6 FORT 33323:23 33324:6,11 33325:5 forwarded 219:19 Four 33324:20 219:4 Frank 33325:3 220:3 freeze 193:17 Friday219:17 front 194:12,20 frustration 196:6 fscruggs@ber ... 33325:6 further 192:16 217:16219:17 222:10 future 217:20 G Gene208:2 getting216:12 gist 193:2,5 give 191:4 203:25211:10 217:11 218:2 given 191:2,3 195:19,20 199:4207:5 212:21222:8 giving 191:8 197:19205:22 GMAC 193:2,3 go 192:5 197:5 203:17210:16 212:1,1213:17 215:20 godsend212:14 going 191:6 192:13,14,16 199:9200:8 205:21 209:7 210:18216:21 217:22 good 191:2 207:21217:20 Group 33323:11 33324:9219:9 guess 195:2 guy 191:14 216:7 H hand223:10 Hanstein 33323:25 219:23222:5 222:20223:14 happen 199:9 202:20 heard 206:22 heart203:4 heavy 203:4 heck214:8 height 211:8 help 199:5 210:12,17 hit 194:13 homes 191:2 host193:17 hour201:18 202:17205:1 hours 195:14 196:11 207:24 215:23 HR 198:14 201:19,19,21 201 :22 202: 11
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 272 of 277 4
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 273 of 277 5
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 274 of 277 6
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Case 0:10-cv-62302-RNS Document 115-1 Entered on FLSD Docket 12/21/2011 Page 276 of 277 8
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