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Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 1 of 222

UNITED STATES DISTRICT COURT


SOUTHERN DISTRICT OF FLORIDA
FORT LAUDERDALE DIVISION
CASE NO. 12-20901-CR-WPD
UNITED STATES OF AMERICA,

.
.
Plaintiff,
. Fort Lauderdale, Florida
. June 26, 2013
v.
. 8:57 a.m.
.
CRAIG STANLEY TOLL,
.
.
Defendant.
.
. . . . . . . . . . . . . . . .
- - - - Transcript of Trial Proceedings had
before the Honorable William K. Dimitrouleas,
United States District Judge, and a jury.
- - - - DAY 3
- - - - APPEARANCES:
For the Plaintiff:
Lois Foster-Steers, Esq.
Kimberly A. Selmore, Esq.
Assistant U.S. Attorneys
99 N.E. 4th Street
Miami, Florida 33132
For the Defendant:

Richard A. Sharpstein, Esq.


Jacqueline M. Arango, Esq.
Ari Gerstin, Esq.
Akerman Senterfitt
One SE 3rd Avenue, 25th Floor
Miami, Florida 33131

Court Reporter:

Francine C. Salopek, RMR, CRR


Official Court Reporter
United States District Court
299 E. Broward Blvd., Room 205F
Fort Lauderdale, Florida 33301
(954)769-5657
- - - - Proceedings recorded by mechanical stenography, transcript
produced by computer.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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WEDNESDAY, JUNE 26, 2013, 8:57 A.M.

(The Judge entered the courtroom)

THE COURT:

Counsel are present.

We have a note from one of the jurors:

"Dear Judge:

All right.

We're back on the record.

Mr. Toll's present.

I just found out last night that my

mother, who is 88 years old and lives in Guyana, got a

heart attack last night, and I would like to be

excused from jury duty so I can make arrangements to

10

go and see her before she pass away.

11

concentrate on this right now.

I cannot

I'm very sorry.

12

"Hermena Ledra."

13

So, I would propose asking Ms. Ledra to come out and

14

excusing her, and we'd move up the alternate -- the first

15

alternate, who is Mr. Fernandez?

16

Any objection?

17

MR. SHARPSTEIN:

18

MS. FOSTER-STEERS:

19

THE COURT:

20

No, your Honor.


No.

All right.

No, your Honor.


Let's ask Ms. Ledra to come on

out.

21

(The juror entered the courtroom)

22

THE COURT:

23

I'm sorry to hear about your mom.

Just have a seat anywhere, Ms. Ledra.


We're going to go

24

ahead and excuse you, and I hope you can get to see your mom.

25

And if you could just give your juror badge back to Vernelle.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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Did you leave anything in the jury room?

JUROR LEDRA:

THE COURT:

No.

All right.

Just -- you can go ahead and

get your lunch, and then we'll go ahead and excuse you.

appreciate your willingness to serve.

mom.

(The juror was excused)

THE COURT:

9
10

I've

So, we'll break a little bit before

noon, and then we'll resume at 1:45.

11
12

I'm sorry about your

I've got a meeting at noon today.

got a 1:15 change of plea.

And I

And I guess we need to get Ms. Tabernacki back on the


stand.

13

Do we have all the rest of the jurors?

14

Anything to come before the Court before we bring the

15

jury in?

16

MS. FOSTER-STEERS:

17

MR. SHARPSTEIN:

18

THE COURT:

19

No, your Honor.

No, your Honor.

Okay.

Ms. Tabernacki, you understand

you're still under oath?

20

THE WITNESS:

Yes.

21

THE COURT:

22

Let's bring in the jury.

23

COURTROOM DEPUTY:

24

(The jury entered the courtroom)

25

THE COURT:

Okay.

If you can resume the stand.

Please rise for the jury.

Counsel concede the presence of the jury

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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and waive its polling?

MS. FOSTER-STEERS:

MR. SHARPSTEIN:

THE COURT:

Yes, sir.

Yes, your Honor.

And did everyone follow my admonition not

to discuss the case or allow it to be discussed in your

presence?

THE JURY:

THE COURT:

Mrs. Ledra's mom is not doing well in

Guyana, and she needs to go back home and see her.

10

excused Mrs. Ledra.

11

on the jury.

12
13

Yes.

Okay.

So, I've

And that means that Mr. Fernandez is now

I think we're ready to resume with the direct

examination.

14

Ms. Foster-Steers, you may proceed.

15

MS. FOSTER-STEERS:

16

Thank you, your Honor.

DIRECT EXAMINATION (CONTINUED)

17

BY MS. FOSTER-STEERS:

18

Q.

Good morning, Ms. Tabernacki.

19

A.

Good morning.

20

Q.

Yesterday when we left off, we were talking about

21

Exhibit C(22), which is a September 8, 2010, e-mail from Craig

22

Toll to you.

23

A.

Yes, I do.

24

Q.

And we were talking about some responses that were provided

25

by Mr. Toll to you.

Do you see that?

Do you remember?

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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TABERNACKI - DIRECT/FOSTER-STEERS
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A.

Yes, I do.

Q.

Okay.

Bate Number 001780 from Exhibit C(22) and ask you, at the last

sentence, it says:

home contribution was one way of fulfilling our commitment of

about five million."

So, let me direct your attention, Ms. Tabernacki, to

"As we have discussed with you, the 500

Will you explain to the members of the jury what those

500 home -- what that 500 home contribution was?

A.

Well, as I understood it, InnoVida Holdings was looking to

10

make a contribution to Haiti with these homes, and it was going

11

to do it through a -- by providing it as a discount through the

12

World Vision contract.

13

Q.

14

contribution separate and apart from that $5 million equity

15

that InnoVida had to provide as a part of the loan from OPIC?

16

A.

Okay.

So, that we can be clear, was the 500 home

Yes, it was separate.

17

Okay.

Now, I wanted to direct your attention to Bate

18

Number 001781J.

19

it talks, about the financial statement -- well, let me

20

read it:

21

InnoVida Holdings indicate that it has negative operating

22

cash flow.

23

causes for the situation.

24

would appear that the parent company would be in default of

25

its financial covenant (sic), precluding us from a further

Would you tell the members of the jury --

"As a place holder, the financial statement for

We would like to discuss and understand the


The situation is critical, as it

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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disbursement."

Is that your inquiry to Craig Toll?

A.

Yes, it was.

Q.

And would you tell the members of the jury why was it that

you were concerned about a negative cash flow of the parent

company, InnoVida Holdings?

A.

transaction, to the extent that the major parent company did

not have sufficient cash, that would indicate that it did not

Well, as the borrower -- or one of the borrowers in this

10

have the cash available to repay the debt.

11

project company was clearly not making money at that point in

12

time, that would be a very significant concern for us.

13

Q.

14

here on this particular page, what is Mr. Toll's response to

15

your inquiry?

16

A.

17

Okay.

And since the

Would you tell the members of the jury, as we see

He said:
"We found that the version originally sent to you was

18

not the final one.

The final one is attached.

Also

19

attached is the calculation of the covenants using the

20

final amounts.

We are in compliance with all covenants."

21

Q.

Now, attached to that particular e-mail, Ms. Tabernacki,

22

was there, in fact, another financial statement provided by

23

Craig Toll?

24

A.

Yes, there was.

25

Q.

Looking now at Bate Number 001784 from the same exhibit,


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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C(22), would you tell the members of the jury whether or not

there was the statement provided to you by Craig Toll as

corrected?

A.

Yes.

Q.

Okay.

consolidated balance sheet, unaudited pro forma."

Did that mean anything to you?

This is the March 31st statement.


And at the top, it has "InnoVida Holdings, LLC,

A.

Once again, the unaudited part did.

management prepared.

That meant that it was

Pro forma was -- I did not put stock in

10

that.

11

Q.

12

with respect to the balance sheets of InnoVida Holdings, LLC?

13

A.

14

are now at $215 million.

15

Q.

16

ending March 31, 2010?

17

A.

Yes, it is.

18

Q.

Looking now at Bate Number 001786, was this provided to you

19

by Craig Toll?

20

A.

Yes, it was, as an attachment to that e-mail.

21

Q.

Okay.

22

A.

This is the income statement showing the revenues and costs

23

of InnoVida Holdings.

24

Q.

Okay.

25

A.

Yes.

Okay.

And what is reflected, according to this document,

It appears that the company is growing.

Okay.

Its total assets

And this is just -- is this just for the quarter

And now looking at Bate Number 001788, what is this?

For the quarter ending March 31, 2010.

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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Q.

And would you tell the members of the jury, according to

this income statement ending March 31, 2010, is InnoVida

showing a profit or a loss?

A.

It is showing a profit for the quarter ending March 31st.

Q.

And where it has "net income, $1,762,345," is that what is

reflected as the net income for InnoVida for the period ending

March 31, 2010?

A.

Yes.

Q.

Okay.

10

A.

Uhm, no.

11

Q.

With those numbers?

12

A.

Well, this was the updated figures.

13

odd that one version -- or the first version that I had

14

received, uhm, showed net operating cash flow was negative and

15

that they didn't have the cash, but for some reason, the new

16

final showed that they did have the cash.

17

version, there was an added covenant that was shown as a

18

calculation.

19

Q.

20

from yesterday, right?

21

A.

Yes.

22

Q.

Okay.

23

Toll?

24

A.

Yes, it was.

25

Q.

Now, I just want to direct your attention, Ms. Tabernacki,

On this statement, that's what it's showing.


Were you satisfied with that?

I thought it rather

And now, in this

Now, looking, Ms. Tabernacki, at 001806 -- you recall this

And was this an acknowledgment sent to you by Craig

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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to the bottom, where it says "sincerely" and then the name

"Elba Gamboa, executive manager, InnoVida Factories, Limited."

Do you see that?

A.

Yes, I do.

Q.

Okay.

the acknowledgments that you were receiving -- or you had

received?

A.

Yes, I did.

Q.

Okay.

10

A.

Because Mr. Toll was the only person -- only finance person

11

I ever dealt with at InnoVida.

12

familiar with all of these documents, and he's the one that

13

provided the explanations as to what these documents contained.

14

Q.

15

in looking at this particular acknowledgment, as to the

16

covenant concerning arm's length transactions?

17

A.

18

showing as acknowledging, I guess receiving and paying, were

19

not involved in the transaction from the standpoint of what was

20

on the invoice.

21

other entities that were also unrelated to the transactions.

22

Q.

Okay.

23

A.

Yes, I did.

24

Q.

Okay.

25

A.

I believe it was the beginning -- I'm not sure.

Okay.

Did you have occasion to question Mr. Toll regarding

And why did you do that?

He was the one that was

Well, did you have any particular concern, though,

Yes, it was very concerning, because the parties that are

And then there was a flow of funds through

And did you talk with Mr. Toll about that?

When did you speak to him about that?


I'm not

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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TABERNACKI - DIRECT/FOSTER-STEERS
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positive of that date.

Sorry.

Q.

Okay.

A.

Yes, we did.

phone.

and Claudio Osorio.

concern on that statement that I pointed out to him.

Q.

Okay.

A.

It was with regard to the invoice numbers, since they sent

us all three acknowledgments at once, the invoice numbers were

But you did have a conversation with him.


And it was the four of us that were on the

It was myself and Cameron Alford, as well as Mr. Toll


If I may, there was one other area of

Go ahead and tell us what --

10

shown as coming from one entity to the other.

11

there were changes within that.

12

the -- one ended in one, one ended in ten, and one ended at 12,

13

which indicated that they all came out of the same book.

14

Whereas if you have different companies, you're not using,

15

well, literally the same checkbook or the same register.

16

And you saw that

But yet the invoice numbers,

And also, during the period of time that was covered,

17

it showed that there were -- you went from one to 12.

18

a $215 million business, you only had 12 invoices issued, which

19

seemed very odd to me.

20

concern and that they would do a better job of keeping track of

21

the finances.

22

Q.

23

invoice, Bate Number 001807.

24

signing -- purportedly signing this particular document?

25

A.

Okay.

So, with

And he expressed that he understood my

Just let me direct your attention to the second


Again, at the bottom, who is

Elba Gamboa.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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Q.

As executive manager for InnoVida Factories, Limited?

A.

Yes, that's correct.

Q.

And the third one, Bate Number 001808, who is purportedly

signing this document?

A.

This is also Elba Gamboa.

Q.

As executive manager of Innovida Factories, Limited?

A.

Yes.

Q.

How often were you speaking to Mr. Toll, Ms. Tabernacki,

during this period of time?

10

A.

Regularly, because they were very interested in receiving

11

this disbursement.

12

and they felt that they had supplied us with sufficient

13

information.

14

disbursing the remainder of the money.

And they couldn't understand our hesitancy in

MR. SHARPSTEIN:

15
16

And so, they were pushing us to move ahead,

Excuse me, your Honor.

I believe

she's saying some hearsay and not identifying the speaker.

17

THE COURT:

Sustain.

18

BY MS. FOSTER-STEERS:

19

Q.

20

the jury who is communicating with you?

21

A.

22

Mr. Toll as -- and most of the time, at this point in time,

23

given our lack of comfort with the representations that were

24

made by the company, I was also on the phone with Cameron

25

Alford.

When you say "they," can you identify for the members of

Oh, I apologize.

I would communicate directly with

And I did have a phone call -- in the beginning of


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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August, Claudio Osorio called me directly to request the

disbursement and had indicated that he was -- he was mobilizing

the movement of the factory, and he needed the disbursement

immediately, and because I was not available that Friday, he

was going to have to call everyone off and stop the shipment.

Q.

Mr. Toll, how often were you speaking with Mr. Toll?

A.

communications, either by phone or e-mail, it would be several

Okay.

Oh.

But with respect to your conversations with

Uhm, regularly.

I mean I would say that, through

10

times a week.

11

Q.

12

And the top of the paragraph, it says:

13

Okay.

Looking now at Bate Number 003116, Exhibit C(23).

"I also feel bad that we sent an incorrect version of

14

the financials in early August.

Then the only significant

15

difference between the incorrect version and the one just

16

sent was an elimination of an intercompany debt and

17

receivable that had not been done on the incorrect

18

version (sic)."

19

Then second paragraph, it says:

20

"We are trying to proceed as quickly as possible to

21

erect the factory and produce housing for the people of

22

Haiti.

23

want to do whatever we can do to expedite the process.

24

This is the reason we keep requesting perhaps too many

25

calls."

Since we can't proceed without OPIC funding, we

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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How many calls were you getting from Mr. Toll?

A.

Uhm, if this -- this was in September, so they were quite

frequent.

information by this question, and we were expected to digest it

in a short period of time.

attempting to have a call immediately after dumping the data on

us, and I kept putting him off so that we would have time.

I would say, you know, once again, it was probably, you know,

twice a week or so that he was seeking a call.

As you can see, they would send a volume of

So, I would say that he was

10

Q.

Okay.

11

A.

But certainly there were e-mails, as well.

12

Q.

Okay.

13

So,

Thank you.

I'm going to show you Ms. Tabernacki what has been

14

introduced as Exhibit C(26), which is an e-mail dated

15

September 28, 2010, from Craig Toll to you.

16

number one, it has attached:

17

And under

"June 30th, parent company unaudited financial

18

statements, consisting of balance sheet, income statement,

19

and statement of cash flows."

20

Do you see that?

21

A.

Yes, I do.

22

Q.

Was another financial statement provided to OPIC?

23

A.

(No response)

24

Q.

And we're looking now at Bate Number 002280.

25

that?

Do you see

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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A.

Yes, I do.

Q.

And for this period, it ends June 30, 2010, right?

A.

Yes.

Q.

When you look at this particular balance sheet,

Ms. Tabernacki, what do you see?

A.

company, uhm, since March.

Q.

Okay.

How about the combined statement of cash flows?

A.

Yes.

This is shown for InnoVida Holdings for the period

I see, once again, that the assets are growing of the


We're now at $236 million.

10

through June 30th.

11

Q.

Okay.

12

A.

Uhm, I also see an increase in cash of another $4 million

13

and a positive generation of cash from operating activities of

14

$8.1 million.

15

Q.

16

which is the combined statement of operations, what do you see?

17

A.

18

June 30th.

19

Q.

That's a profit for InnoVida Holdings.

20

A.

Yes.

21

Q.

Let me go back to the first page, Bate Number 002278 of

22

C(26).

And in looking at this, what do you see?

Okay.

And then if we look at Bate Number ending 002283,

I see a net income of 5.9 million for the period ending

Yes, for the parent company.

Referenced in number four:

23

"Corrected acknowledgments, which only change the

24

signature block to InnoVida Holdings, LLC, to minimize

25

reviewer confusion."
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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Did you get another set of acknowledgments,

Ms. Tabernacki?

A.

Yes, I did.

Q.

Okay.

the bottom of the page -- well, let me go here -- is this an

acknowledgment for April 30, 2010?

A.

Yes, it is.

Q.

For that $2,080,000, right?

A.

Yes, it is.

10

Q.

And for invoice AKY-032410-001 (sic), right?

11

A.

That's correct.

12

Q.

Now, at the bottom, what has changed?

13

A.

That now the signature line is from Elba Gamboa, executive

14

manager, this time of InnoVida Holdings.

15

And the additional acknowledgments that you got, at

This resulted from the original conversation that I

16

had had with Mr. Toll expressing my confusion that it was

17

saying that the money -- wait -- this letter was... okay.

18

was saying that this was acknowledgment that it had been

19

received from InnoVida Holdings, and it was signed by InnoVida

20

Holdings.

21

Q.

But before --

22

A.

Yeah.

23

Q.

-- Elba Gamboa, do you recall what entity that Elba Gamboa

24

had signed as executive manager for?

25

A.

Yes.

It

So, it was --

It was Innovida Factories.


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(954)769-5657

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Q.

Was that same change made on all three acknowledgments?

A.

Yes, it was.

Q.

We're looking now at Bate Number 0022 -- 2288.

acknowledgment for that $1,689,993?

A.

Yes, it is.

Q.

At the bottom, Elba Gamboa is signing now for InnoVida

Holdings, LLC, right?

A.

She is.

Q.

And then now looking at Bate Number 002289, is this the

Is this the

10

acknowledgment for that amount, $1,929,804?

11

A.

Yes, that's correct.

12

Q.

And, again, Elba Gamboa is now signing as executive manager

13

for InnoVida Holdings, LLC?

14

A.

Yes.

15

Q.

Now, Ms. Tabernacki, did you receive two statements from

16

the Royal Bank of Canada?

17

A.

Yes, I did.

18

Q.

Okay.

19

look at Bate Number 002285.

20

A.

Craig Toll within that --

21

Q.

And what -- why was it that you were receiving this

22

particular document?

23

A.

24

of the movement of the funds.

25

bank statement as evidence of that.

From the same exhibit, C(26), I want you to take a


Who sent this to you?

Because we had been looking for a third-party confirmation


And so, he was sending me this

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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Q.

Okay.

Now, I want to draw your attention to the entry

under the first column, August 3, 2010, advance on invoice

number AKY- -- AKY1-0324 -- I'm sorry -- let me read that

again -- AKY1-032410-001.

What is that to represent?

A.

evidenced on that acknowledgment and as evidenced on the

pro forma invoice relating to that contract.

Q.

Okay.

10

A.

E-mail contract.

11

Q.

Okay.

12

$6, $6, and then an entry for that million dollars?

13

A.

Yes.

14

Q.

When you got this, what did you think?

And there's a number of 1,929,804.

That's supposed to represent the World Vision payment, as

Now, above that, do you see entries for $6, $6, $6,

15

MR. SHARPSTEIN:

16

THE COURT:

Objection to what she thought.

No, I'm gonna allow it.

17

A.

Well, I certainly recognized that the numbers agreed, the

18

1,929,804.

19

reconcile it to the other documentation.

20

Q.

Okay.

21

A.

One is that this is a Royal Bank of Canada account, whereas

22

it was supposed to be deposited in the Wachovia account related

23

to the Haiti project.

24

funds, as indicated on there, even if it were appropriate,

25

indicated that it was supposed to be deposited in Innovida

But there were other problems with it in trying to

What were those problems, Ms. Tabernacki?

In the acknowledgment, the flow of

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Services.

We had not heard of this account previously.

And, also, the date of August 3rd seemed rather odd

considering the other facts surrounding the World Vision

e-mail/contract.

Q.

Okay.

A.

Uhm, the e-mail from Claudio Osorio to Craig Toll, which

was the forwarded e-mail from World Vision, was sent to Craig

Toll on August 4th.

that on July 25th.

And what other facts are you referring to?

Claudio Osorio had supposedly received


And supposedly this money was to have flown

10

through four business accounts, from InnoVida Holdings through

11

Southeast, through services, through factories, through

12

services, whatever.

13

deposit in an account, the bank records it the next day.

14

you move it through four accounts, it's unlikely that it would

15

show up the same day or the day prior to the date that you know

16

about a contract.

17

Q.

Okay.

18

A.

Very.

19

Q.

Okay.

20
21

The point being that for me, if I make a

So, were you suspicious of this?

And were you suspicious of the other --

MR. SHARPSTEIN:

Objection to the form of the

question.

22

THE COURT:

Sustain.

23

MS. FOSTER-STEERS:

24

BY MS. FOSTER-STEERS:

25

Q.

Okay.

Let's look now at Bate Number 002286, also from


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

If

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Exhibit C(26).

A.

was a deposit in this Royal Bank of Canada account on

July 16th, relating to the invoice number AKY1-032410-010, in

the amount of $1,000,689,000,993 (sic).

Q.

document, what did you think?

A.

it did not seem to jive with the other information that we

10

And what is this?

This also is a bank account screen shot showing that there

Okay.

Now -- and, again, when you received this particular

Well, similarly to -- similarly to the previous statement,

were -- we had seen or obtained.

11

First of all, similar -- as I said, similar to the

12

other problems, we did not know about this Royal Bank of Canada

13

account.

14

importantly, this was -- as given to us, this was to represent

15

amounts related to the World Food Program contract/e-mail.

16

with regard to the contract that we saw yesterday, DRC did not

17

enter into a contract with World Food until July 23rd.

18

company did not enter into a contract with DRC to be its

19

subcontractor on the World Food Program until August.

20

Q.

21

Toll.

22

disbursement?

23

A.

No, we did not.

24

Q.

In fact, what did you do, Ms. Tabernacki, after you

25

received this information?

Okay.

It was not to reflect the Haiti activities.

But more

But

And the

So, you've now received this information from Craig

Is OPIC moving forward with approving a second

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A.

Went to the management of OPIC to let them know what was

going on.

Uhm, continued to ask questions.

MS. FOSTER-STEERS:

3
4

BY MS. FOSTER-STEERS:

Q.

Bate Number 002285.

is?

A.

assumed --

Let's go back just one minute, Ms. Tabernacki, to C(26),


Do you recognize whose handwriting this

It was similar to what I had seen for Craig Toll, so I

10
11

Let's look at C(28).

MR. SHARPSTEIN:

Objection to the form.

Move to

strike.
THE COURT:

12

Sustain.

13

BY MS. FOSTER-STEERS:

14

Q.

What does it say?

15

A.

It should have referenced invoice -012, which was the

16

earlier acknowledgment invoice number related to the World

17

Vision contract.

18

Q.

And what does it say?

19

Does it say:

"Due to typo in instructions to bank"?

20

A.

"To bank."

21

Q.

Did you think anything of that?

22

A.

Uhm, at the time?

23

one more -- one more error or one more attempt to confuse the

24

facts.

25

Q.

Okay.

No.

I just thought it was, you know,

Let's look now at Exhibit C(28), which is an e-mail


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dated October 5, 2010, from Craig Toll to you.

your attention to the bottom of the page, under "one," it says:

And directing

"Please provide the bank statement relating to the

April 30th deposit at Southeast for $2,080,000."

Is that your inquiry to Craig Toll?

A.

Yes, it is.

Q.

And what is the response that we see from Mr. Toll to you

here?

A.

It says:

10

"The $2,080,000 was transferred in three wires, one

11

for 1.5 million to Services, and two to Southeast for

12

250,000 and 350,000, respectively.

13

pages are attached."


Okay.

The bank statement

14

Q.

Now, Ms. Tabernacki, if we add 1,500,000 to 250,000

15

to 350,000, does it add up to 2,080,000?

16

A.

No, it does not.

17

Q.

What does it add up to?

18

A.

It adds up to $2 million -- or two -- no, I'm sorry --

19

$2,100,000.

20

Q.

$2,100,000?

21

A.

Yes.

22

Q.

Okay.

23

$20,000, right?

24

A.

Yes, correct.

25

Q.

And let's look at Bate Number 003052.

So, we're off at around $20 million -- I'm sorry --

Are these the bank

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statements that were submitted in support of those figures that

we just saw?

A.

Yes, it is.

Q.

And at the top of the page, there is an account number

ending '4270, right?

A.

Yes, from Wachovia Bank.

Q.

And what is the name of the company listed here?

A.

InnoVida Services.

Q.

Directing your attention to where it has "5-3" -- do you

10

see that?

11

A.

Yes.

12

Q.

And $1,500,000, funds transfer received from InnoVida

13

Holdings, or -- ORG, rather, InnoVida Holdings, Inc.

14

Was this one of the entries -- or, rather, the

15

deposits into InnoVida Southeast '4270 that was being used as

16

support for that -- one of the wires adding up to that

17

$2,080,000?

18

A.

Yes, it was.

19

Q.

The date 5-3, was that before the invoice or was that after

20

the invoice?

21

A.

That was -- you know, I'm sorry, I'm --

22

Q.

I can bring it up.

23

I'm gonna show you one thing, Ms. Tabernacki, just a

24

second.

25

A.

Oh, yes, that's correct.

Okay.

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Q.

The $2,080,000 we saw before from C(26).

A.

Yes.

Q.

What is the date of that acknowledgment?

A.

April 30th, indicating that the payment had been received

as of that date.

Q.

On April 30, 2010.

A.

Yes.

Q.

And the entry here into InnoVida South -- I'm sorry --

InnoVida Services, what is the date of that?

10

A.

May 3rd.

11

Q.

After the acknowledgment --

12

A.

Yes.

13

Q.

-- that InnoVida had received payment, right?

14

A.

Yes, that's correct.

15

Q.

Now, looking at Bate Number 003053, directing your

16

attention to the top of the page, the account number ending

17

'9791.

18

A.

Yes.

19

Q.

And the company being InnoVida Southeast, LLC, right?

20

A.

Yes, this is InnoVida Southeast.

21

Q.

Now, for 5-13, there's an entry of $250,000.

22

that?

23

A.

Yes, that's correct.

24

Q.

Was this one of the deposits that was being told to you by

25

Craig Toll supported the payment of that $2,080,000?

Do you see that?

Do you see

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A.

Yes.

Q.

And what is the date of that entry?

A.

May 13th.

Q.

Is it after the acknowledgment?

A.

Yes.

Q.

Looking now at the bottom, 5-25, $350,000, do you see that?

A.

Yes, I do.

Q.

Was this also the third wire that Mr. Toll told you was in

support of that $2,080,000?

10

A.

Yes, he did.

11

Q.

And is it after the acknowledgment that we've looked at?

12

A.

Yes.

13

Q.

Now, I want you to look now at Bate Number 003039 from

14

Exhibit C(28) under Section B.

15
16

What are you asking of Mr. Toll?


A.

"The invoice, the acknowledgment, and financial

17

statements indicate that 2,080,000 in equity funds

18

were paid to factories as a deposit of 25 percent of

19

the factory equipment.

20

further indicates that $2,080,000 was routed to

21

Southeast for structural panels.

22

original intention of the funds was not what

23

ultimately" -- oh, I'm sorry -- that's his response.

24

Q.

Okay.

25

A.

Sorry.

However, the acknowledgment

As you know, the

The response --

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Q.

-- tell us what the response was.

A.

His response was:

"As you know, the original intention of the funds was

not what ultimately took place.

and Southeast expecting to make panels for the houses to be

contributed, but this was not approved.

went to vendors of factories to be used for the deposit on

the machinery and equipment."

Q.

We sent funds to Services

The funds then

What did you think at that time regarding that response,

10

Ms. Tabernacki?

11

A.

12

there was a -- this exhibited a habit of writing "as you knew,"

13

or "as you know," when, no, that wasn't necessarily the case.

14

Things were not represented to me.

15

represented to me, they were shifting explanations.

16

Q.

17

Well, first of all, I found it rather annoying, because

Okay.

And if they were

And now looking at the bottom, your inquiry:

"In the two additional acknowledgments dated July and

18

August, InnoVida Holdings, LLC, is acknowledging receipt of

19

funds from (itself?), which represents an advance payment

20

of an invoice from Southeast, which is an advance to

21

Southeast."

22
23
24
25

What is Mr. Toll's response to that, Ms. Tabernacki?


A.

He said:
"We think the wording could be improved.

In different

words, InnoVida Holdings is acknowledging that as a payer


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of the funds, it understands that it advanced $1,689,993 to

InnoVida Southeast through InnoVida Services.

cases, InnoVida Services pays invoices on behalf of other

companies in the group."

Q.

Okay.

through InnoVida Services, right?

A.

Yes, that's correct.

Q.

Let's look now at Bate Number 003045.

the members of the jury what this is.

In many

So, is he -- he says here that the monies went

What is this?

Tell

10

A.

This is, once again, another progress report that is

11

required of InnoVida for the quarters and also in support of

12

the requested disbursement, I believe.

13

Q.

14

right?

15

A.

Yes, that's correct.

16

Q.

Now, in the first paragraph, under "summary of progress of

17

the project," what does it say with respect to disbursements?

And this is a project report ended September 30, 2010,

18

Here.

19

A.

Yes, uhm --

20

Q.

Directing your attention to where it says "between that

21

date."

22

A.

"Between that date and June 30, 2010, there were

23

two disbursements, one for $100,000 to OPIC for

24

fees" -- which was, by explanation, the amount that

25

was deducted before we wired the money -- "and one for


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2,080,000 to Innovida Factories as a deposit on the

purchase of machinery and equipment for a factory to

be constructed in Haiti.

InnoVida Factories were attributed to be from equity

funds, while the fees were attributed to be from the

OPIC advance."

Q.

Okay.

The funds for the advance to

Let me stop you there.

"The funds for the advance to InnoVida were attributed

to be from the equity funds."

10

Had that changed?

11

A.

12

and the OPIC disbursement amount combined were supposed to be

13

used for the purposes of shipping the structural panels to

14

Haiti.

15

should not have been used for manufacturing equipment, they

16

changed it to, oh, just our equity would be used for the

17

manufacturing equipment.

18

Q.

19

$2,080,000 had come from?

20

equity?

21

A.

That was from equity.

22

Q.

Okay.

23

Yes.

Had that explanation changed?

Because originally, as you recall, the equity funds

And now, because we were saying, uhm, that our funds

And, originally, do you recall where Mr. Toll had said that

Okay.

Was it from OPIC or was it from

And in the second paragraph, it talks about

24

there's an additional disbursement from the OPIC funds for,

25

again, $1,689,993 related to the World Food Project.

And then

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the other figure of $1,000,929 -- $1,929,804 relating to the

World Vision project.

All right.

Now, looking at the second page of the

progress report, 003046, it talks about in the third paragraph:

"Further, we have obtained a commitment for a

$3.5 million contract with Royal Caribbean."

What was your understanding of what that was?

A.

We had, once again, understood that that was a contract

that they had entered into to build schools and homes for

10

teachers, but that was not what OPIC had planned with its

11

money.

12

Q.

Okay.

13

A.

So, while interesting, it wasn't the proposed use of the

14

OPIC funds.

15

Q.

16

recall this document being received by InnoVida -- I'm sorry --

17

from InnoVida to OPIC?

18

continued relationship with InnoVida?

19

A.

20

OPIC's side, we were highly suspicious of the information that

21

was being presented to us, which is one reason why we had two

22

people on the phone at all times, why we took notes.

23

not entirely clear whether they were aware of our concerns.

24

But certainly the questions that were being asked of them,

25

looking for this detailed information and pointing out

Now, Ms. Tabernacki, can you tell us, in view of -- do you

How did you view your relationship or

During this period, I would say that, uhm, on our side, on

And I am

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inaccuracies and inconsistencies and things that just looked

fishy, they should have been asking the questions of

themselves.

4
5

MR. SHARPSTEIN:

Objection to the form.

Move to

strike.

THE COURT:

Ignore the last answer.

Sustain.

BY MS. FOSTER-STEERS:

Q.

Now, had you, at this point, Ms. Tabernacki, received any

10

audited financial statements?

11

A.

We had not.

12

Q.

Okay.

13

A.

We did ask about those.

14

Q.

Who did you ask?

15

A.

We asked Mr. Toll.

16

recall, we had -- earlier, at the time of the loan agreement,

17

we had given them an extension to May 31st, which they had then

18

indicated that they couldn't make.

19

time, and they needed to August 31st.

20

needed through September, because they were having trouble

21

consolidating the international subs.

22

complexities there.

23

couldn't do it because it was Ramadan.

24

Did you ask about those?

Because during this time period, if you

And so, they needed more


Later on, they said they

There were some

Subsequently to that, they said that they

MR. SHARPSTEIN:

Objection to the "they" again.

25
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BY MS. FOSTER-STEERS:

Q.

Yes.

A.

Oh, I'm sorry.

4
5

Mr. Toll was representing to us that because of


Ramadan, they could not prepare the financial statements.

Later on in the year, come October or so, Mr. Toll

represented to us that because of the litigation that was

facing the company from the shareholders, that the litigation

would complicate the audit, and they would not be able to do it

10

at that time.

11

Q.

12

Okay.

Let's talk about the litigation.

What did Mr. Toll tell you about any litigation of --

13

or related to InnoVida?

14

A.

15

report any litigation to the -- within the -- directed to the

16

company to us --

Well, initially nothing.

17

MR. SHARPSTEIN:

18

THE COURT:
Okay.

Even though they are required to

Objection.

Nonresponsive.

Overruled.

19

A.

20

about the litigation.

21

on our own, and we approached the company and asked them what

22

was going on.

23

Q.

24

you talk to?

25

A.

Okay.

So, they were nonresponsive to us in not telling us


And then, finally, we found out about it

When you say "we approached the company," who did

I apologize.

We talked to, at that point in time, both

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Craig Toll and Claudio Osorio.

Q.

as well as Mr. Osorio?

A.

And so, we wanted to talk to them both and understand the

perspectives of what was going on from the -- I guess the

qualitative perspective of the litigation, and we wanted to

speak to Mr. Toll because of the quantitative effects on the

company.

Okay.

And why is it that you're talking to both Mr. Toll

Because Mr. Osorio was clearly involved in the litigation.

10

Q.

Okay.

When you say the "quantitative effects" --

11

A.

Yes, meaning how it affects the financials of the company,

12

what concerns did they have in terms of money that they could

13

lose in litigation.

14

Q.

And what did he tell you?


MR. SHARPSTEIN:

15

Objection, your Honor, to -- could we

16

have a time period of -- some kind of foundation for the

17

hearsay?
THE COURT:

18

Okay.

19

A.

This in is the period, October and November.

20

Q.

Of what year?

21

A.

2010 -- no -- yeah, 2010.

22

Q.

All right.

23

to report litigation to OPIC?

24

A.

Yes, it was.

25

Q.

Okay.

Now, you said before that InnoVida was required

Where was that contained?

Why do you say that

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InnoVida was required to report litigation to OPIC?

A.

we had looked at the other day.

Q.

InnoVida in default of any provision of the loan agreement?

That was one of the provisions of the loan agreement that

Okay.

MR. SHARPSTEIN:

6
7

And by not reporting to OPIC any litigation, was

Objection to the form of the

question.

THE COURT:

Overruled.

A.

They were in default of the loan agreement at that point.

10

Q.

Now, let's go back to the audited financial statements,

11

Ms. Tabernacki.

12

A.

Um-hum.

13

Q.

When you were not able to get the audited financial

14

statements, what, if anything, did you do?

15

A.

16

engagement manager supposedly responsible for the audit of the

17

company.

18

Q.

Okay.

19

A.

Mr. LaMacchia, I believe Tim.

20

Q.

And in response to -- did you speak with him?

21

A.

Yes, I did.

22

Q.

All right.

23

you do?

24

A.

25

not a drill anymore, because now we were aware -- from my

On November 30th, I called the company's auditors, the

Who was that?

And at the end of that conversation, what did

I sent an e-mail to my in-house lawyer telling him this is

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conversation, Mr. LaMacchia --

MR. SHARPSTEIN:

THE COURT:

Objection to the hearsay.

I'll allow it for the fact it was said,

not the truth of the matter asserted.

A.

been contacted by the company to perform an audit in the

spring, there was no ongoing audit.

an audit at that point in time.

Q.

Were you concerned?

10

A.

I was very concerned.

11

upon those audited statements, and all of a sudden, even though

12

we were -- it was being represented to us all along that there

13

was an audit going on, and we were supposed to be waiting for

14

it, there was no audit being conducted.

15

Q.

Now, did you request bank statements of InnoVida?

16

A.

Yes.

17

the acknowledgments and the invoices and the contracts, I asked

18

for the bank statements, the complete bank statements of

19

InnoVida Holdings, InnoVida Services, InnoVida Southeast, and

20

Innovida Factories for every month from the last year.

21

Q.

The complete bank statements?

22

A.

Yes.

23

Q.

Ms. Tabernacki, I want you to look at Exhibit C(37).

24

you recognize this?

25

A.

Uhm, Mr. LaMacchia told me that while, indeed, they had

They were not performing

We were relying -- we needed to rely

At this point in time, given the inconsistencies in

Yes, I do.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
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Q.

Okay.

What is it?

A.

It's the cover page to the bank statements that were sent

to me for the fiscal year 2010, and that's my handwriting

saying, where are the statements for Factories.

Q.

And at the top, what bank statements are these for?

A.

These are the bank statements for InnoVida Holdings.

Q.

Looking at Bate Number 003225, at the top of the page has

InnoVida Holdings, LLC, for account number ending '8744.

you see that?

Do

10

A.

Yes.

11

Q.

For the period 1-1-2010 through 1-29-2010, right?

12

A.

Yes.

13

Q.

What did you get?

14

A.

On this page or in the package?

15

Q.

Okay.

16

A.

Okay.

17

Q.

It says here "account summary, opening balance, 1-01, a

18

hundred dollars."

19

A.

Yes.

20

Q.

And then it has a total here of $17 as of -- or, rather,

21

withdrawals, 1-12, $17.

22

A.

Yes.

23

Q.

And then there's another statement, 1-30-2010, right?

24

A.

Yes.

25

Q.

And then for the period 2-27-2010, 3-31-2010, it has

Well, let me direct your attention --

Do you see that?

Do you see that?

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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TABERNACKI - DIRECT/FOSTER-STEERS
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"deposits and other credits."

Do you see that?

A.

Yes.

Q.

This is now Bate Number 003228.

information, Ms. Tabernacki?

A.

No.

Q.

Deposits and other credits for the period --

A.

Yes.

Q.

-- 2-27-2010 through 3-31-2010?

A.

Right.

10

Q.

And before, the same package, we had seen information

11

regarding "other withdrawals and service fees."

12

A.

Yes.

13

Q.

Right?

14

A.

Yes.

15

withdrawals in order to get to the ending balance.

16

Q.

17

2010, there's a deposit of $1 million coming in from

18

GFS Concessions, right?

19

A.

Yes.

20

Q.

And then there's, again, the same date, $2 million, funds

21

transfer from Christopher Korge, right?

22

A.

23

substantiate the first disbursement.

24

Q.

But no indication of any withdrawals --

25

A.

No.

Is there any withdrawal

This only showed the deposits and other credits.

And --

Bank statements generally provide for deposits and

And, in fact, if we look at the deposits, in March 31,

Yes.

This is the same page we had seen earlier to

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 36 of 222

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TABERNACKI - DIRECT/FOSTER-STEERS
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Q.

-- for that money.

Look now at the next month, May -- or, rather,

April 1, 2010, through April 30, 2010.

The information here,

"deposits and other credits," correct?

A.

Yes.

Q.

And then there's a comment:

withdrawal?"

A.

That's mine.

Q.

Why did you write that?

10

A.

Because this 3.2 million represents the OPIC funds going

11

into the account.

12

information contained here on the bank statement to show where

13

that money went.

14

Q.

Okay.

15

A.

I'm very concerned.

16

Q.

Look now at Bate Number 003231 from the same exhibit,

17

C(37), for '8744, InnoVida Holdings, LLC.

18

information with respect to any withdrawals?

19

A.

20

shows that there was $2.3 million withdrawn from the account.

21

Q.

Okay.

22

A.

That's my handwriting.

23

Q.

24

A.

Yes.

25

Q.

And just explain to the members of the jury, what is it

"Why no detail on the

Whose handwriting is that?


Sorry.

And there -- there was no withdrawal

Are you concerned?

Again, is there any

There is no information, but the account summary clearly

And you're -- is this your handwriting?

"Where did the amounts go?""

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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TABERNACKI - DIRECT/FOSTER-STEERS
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that you're noting here?

A.

I believe that on the next page, where the daily balance

is.

And so, uhm, I was calculating out how much was moving

out.

obtained from the other bank statements that I had received at

the time.

that 250,000 went from Holdings to Southeast to Services.

Q.

Okay.

A.

And then out (indicating).

10

Q.

Okay.

11

talking about the amount referenced by Craig Toll that had

12

supported that $2,080,000?

13

A.

Yes.

14

Q.

Are you trying to trace the funds, Ms. Tabernacki?

15

A.

Yes.

16

Q.

Were you successful with the information provided to you --

17

A.

No, I was --

18

Q.

-- by Mr. Toll?

19

A.

No, I was not, because it didn't have any withdrawal

20

information.

21

that I didn't have the data available to me to know where it

22

went.

23

Q.

24

May 29, 2010, through June 30, 2010, again, for the '8744

25

account, at the bottom, it has "other withdrawals and service

And the -- the indications of Southeast to Services were

Okay.

So, I was -- had them all lined up, so I could see

And when you talk about that $250,000, are you

And so, I was attempting to trace information

Looking at Bate Number 003223, for the period

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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38
TABERNACKI - DIRECT/FOSTER-STEERS
1

fees, $702,063.42."

A.

As to the withdraws, no.

Q.

Looking at Bate Number 003235, again, any details?

A.

Uhm, there is no details on the movement of funds and other

withdraws.

and from the -- these were all sent to me by a hard copy.

I noticed was that these were not just, you know -- it -- these

were not put through a copy machine to be sent to me, because

this one, for instance, is in the middle of the page, which

10

meant that it had been -- oh, excuse me -- it had been moved

11

down in order to make the copy.

12

information wasn't there.

13

Q.

14

Exhibit C(37).

15

entry 8-11, $500,000.

16

Okay.

Any details provided as to that?

And if I may, what I noticed from these statements


What

And, clearly, the withdraw

Let's look now at Bate Number 003237 from


And I want to direct your attention to the

When you saw this, Ms. Tabernacki, what did you think?

17

A.

18

handwriting, "Where is the $2.5 million deposited earlier?"

19

It took me a minute, but I realized -- you see my

If you recall, they had provided us with evidence from

20

this account indicating that there had been $2.5 million

21

deposited on August 11th.

22

that day.

23

Q.

24

deposit on August 11th into InnoVida Holdings, LLC, account

25

number ending '8744, what did you think?

Okay.

This was the only entry shown for

And when you noticed that there was no $2.5 million

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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TABERNACKI - DIRECT/FOSTER-STEERS
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A.

I thought there must be an error, and I went back to the

original document that they had sent us showing this deposit.

Q.

Okay.

A.

Yes, I did.

Q.

Okay.

A.

It revealed that for that same day, for that same tracing

number, that where it had said 500,000, the earlier copy that I

received said that that amount was 2,500,000, designated for

8-11 with that tracing number.

Do you compare them?

And your comparison revealed what?

10

Q.

And, again, for that period, are you provided with any

11

withdrawal information?

12

A.

13

the amounts per day.

14

Q.

15

statements provided to you by Craig Toll where you requested

16

bank statements, was any withdrawal information provided to you

17

after January, 2010?

No.

This is me attempting to calculate the difference in

In fact, Ms. Tabernacki, from that first set of bank

MR. SHARPSTEIN:

18

Judge, which ones was she talking

19

about?

Because there was no testimony that Craig Toll is the

20

one that gave her these, C(37).

21

THE COURT:

22

Overruled.

You can cross-examine on that.

23

BY MS. FOSTER-STEERS:

24

Q.

25

looking at Bate Number 001362 from Exhibit C(18)?

Ms. Tabernacki, is this what you're referring to?

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

And I'm

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 40 of 222

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TABERNACKI - DIRECT/FOSTER-STEERS
1

MS. SELMORE:

C(20).

MS. FOSTER-STEERS:

C(20)?

BY MS. FOSTER-STEERS:

Q.

C(20).

A.

(No response)

Q.

Did you understand my question?

A.

I'm sorry?

8
9

No.

Oh, yes.
referring to.

This is the document that -- that I was

Because this was the amount that was shown as

10

the balance and the deposit amount as of that day.

11

notice it says "funds transfer advice number," and it gives

12

that deposit amount for that day.

13

If you

Uhm, at this point in time, it also -- well, it shows

14

also that it was deposited into this account, '8744.

15

this point in time, I also, obviously, took a much closer look

16

at this document.

17

blurry lines across the information.

18

made the inference that that could be tape marks related to

19

documentation that had been altered.

20

And at

And I noticed that it had these kind of


And so, I made the -- I

Also, pulling out a little bit, if I -- I had even

21

gone to the extent of taking a ruler and noticing that the

22

lines do not line up exactly.

23

to that amount that had been inserted.

24

Q.

25

you tell the members of the jury, what is this funds advice

They do seem slightly askew as

When you talk about a "funds transfer advice number," can

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 41 of 222

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TABERNACKI - DIRECT/FOSTER-STEERS
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transfer number that you're referring to?

A.

information wires to be identified.

Q.

Exhibit C(20), is the advice -- funds advice transfer number

2010081100051248?

A.

Yes.

Q.

And if we look at Bate Number 003237, the bank statement of

InnoVida Holdings, account '8744, for the date August 11th, is

This is, you know, a tracking number to enable bank

Okay.

And on this particular document, 001362 from

10

that same advice -- funds transfer advice number the same?

11

A.

Yes, it is.

12

Q.

All right.

13

Ms. Tabernacki, what did you do?

14

A.

15

all of the withdrawals.

16

the bank information, any bank information for Innovida

17

Factories.

18

InnoVida MRD, which we had no dealings with and was not

19

reflected in any of our documentations.

20

to why that was sent to me.

21

THE COURT:

22

So, after you received these documents,

I asked Mr. Toll for the complete bank information showing


Also, I had not at that point received

I did receive bank information for a company called

Ms. Foster-Steers, is this a good spot to

take a break?

23

MS. FOSTER-STEERS:

24

THE COURT:

25

So, I was unclear as

Yes, sir.

All right, members of the jury, we're

going to take a 15-minute recess.

Remember my admonition not

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 42 of 222

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TABERNACKI - DIRECT/FOSTER-STEERS
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to discuss the case or allow it to be discussed in your

presence.

15 minutes.

And we'll see you back in the jury room in

COURTROOM SECURITY OFFICER:

Please rise for the jury.

(The jury exited the courtroom)

THE COURT:

And, again, Ms. Tabernacki, during the

break in your testimony, you're not allowed to discuss your

testimony with anyone.

9
10
11

THE WITNESS:
THE COURT:

And we'll see you back in 15 minutes.


Okay.

Thank you.

And if there's nothing else to come before

the Court, we'll be in recess in this case until 15 minutes.

12

(Recess taken at 10:10 a.m. until 10:24 a.m.)

13

(The Judge entered the courtroom)

14

THE COURT:

Please be seated.

15

All right.

We're back on the record.

16

Counsel are present.

17

I guess we need to get Ms. Tabernacki back.

18

Anything to come before the Court while we're waiting

19

for her to come in?

20

MS. FOSTER-STEERS:

21

MR. SHARPSTEIN:

22

(Pause)

23

THE COURT:

24
25

Mr. Toll's present.

No, your Honor.

No, your Honor.

Ms. Tabernacki, you understand you're

still under oath?


THE WITNESS:

Yes, I do.

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 43 of 222

43

THE COURT:

COURTROOM SECURITY OFFICER:

(The jury entered the courtroom)

THE COURT:

All right.

and waive its polling?


MS. FOSTER-STEERS:

MR. SHARPSTEIN:

THE COURT:

10

Please rise for the jury.

Counsel concede the presence of the jury

Let's bring in the jury.

Yes, sir.

Yes, your Honor.

And did everyone follow my admonition not

to discuss the case or allow it to be discussed in your


presence?

11

THE JURY:

12

THE COURT:

13

at lunchtime today.

14

before noon so I can get to that.

15

1:15 that should take a half an hour.

16

going to be a little longer than normal today, till around

17

1:45.

18

Yes.
All right.

I've got a committee meeting

So, we're going to break a little bit


And then I have a hearing at
So, our lunch break is

Tomorrow we'll start at nine, and we'll go to about

19

12:30, maybe one o'clock, and then we're not going to be in

20

session tomorrow afternoon.

21

and, again, may have a little longer lunch break on Friday.

22

So, that kind of gives you an idea of what to expect

23

scheduling-wise the rest of this week.

And Friday we'll start at nine

24

Ms. Foster-Steers, you may continue.

25

MS. FOSTER-STEERS:

Thank you, your Honor.

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 44 of 222

44

BY MS. FOSTER-STEERS:

Q.

requested bank statements, complete bank statements from

Mr. Toll, correct?

A.

Yes.

Q.

All right.

A.

Holdings, Southeast, Services, and Factories.

Q.

Okay.

A.

Because with regard to the acknowledgments and the

Ms. Tabernacki, before our break, you had said that you

For what organizations?

And why did you request those bank statements?

10

pro formas, those seemed to be the entities involved in these

11

transactions.

12

Q.

And did you get them?

13

A.

I received them for the three entities -- Holdings,

14

Southeast, and Services, but not for Factories at that time.

15

Q.

16

is this what you got from Mr. Toll?

17

Okay.

Now, looking at Bate Number 003250, Exhibit C(42),

MR. SHARPSTEIN:

Objection, from Mr. Toll.

18

testimony how she got them.

19

MS. FOSTER-STEERS:

There's no

Okay.

20

BY MS. FOSTER-STEERS:

21

Q.

Who did you ask, Ms. Tabernacki?

22

A.

I asked Mr. Toll, and then I received these statements.

23

Q.

Okay.

24

for, what entity?

25

A.

So, then, let's go back to what these statements are

This is for InnoVida Holdings.


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 45 of 222

45

Q.

LLC?

A.

Yes.

Q.

And if we look at Bate Number 003251, at the top of the

page, the account number ends '8744.

Holdings, LLC, correct?

A.

Yes.

Q.

And we now see bank statement for the period 1-1-10 through

1-29-10.

A.

Yes.

10

Q.

Let me show you this first.

11

It has InnoVida

Do you see that?

Now, directing your attention, Ms. Tabernacki, to Bate

12

Number 003258 from Exhibit 42, what is this?

13

A.

14

month of April.

15

Q.

And what is reflected here?

16

A.

The deposits and the withdrawal information for that month.

17

Q.

And here at the top, 3-28-2010, you see OPIC's monies being

18

deposited, correct?

19

A.

Yes, that's correct.

20

Q.

And looking now at Bate Number 003260, we have information

21

regarding withdrawals and services fees, correct?

22

A.

Yes.

23

Q.

For the period May 1, 2010, through May 28, 2010, right?

24

A.

Yes.

25

Q.

And it shows, Ms. Tabernacki, on here that a withdrawal of

This is also a bank statement for InnoVida Holdings for the

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 46 of 222

46

$201,900 was made on May 3rd, right?

A.

Yeah, um-hum.

Q.

A withdrawal was made on May 3rd of $1,000,500 (sic),

right?

A.

Yes, 500,000, yes.

Q.

Another withdrawal is made on May 13th of 250,000, and then

May 25th, 350,000, correct?

A.

Yes, that's correct.

Q.

Now, let's look at Bate Number 003262 for the period

10

July 1, 2010, through July 30, 2010.

And looking at this,

11

Ms. Tabernacki -- let's go back to the pro forma invoice, which

12

is from Exhibit C(25), Bate Number 003050.

13

$1,689,993.

14

page and then look at the next page and tell the members of the

15

jury whether or not you see any amount for $1,689,993 coming

16

from this account, '8744, in the month of July, from the

17

account '8744.

18

A.

19

that period, there was no amount of 1,689,000, roughly, that

20

was transferred from the Haiti account.

21

Q.

22

statement for July 31, 2010, through August 31, 2010.

The amount,

The invoice dated July 16, 2010.

No, I do not.

And look at this

While there were other withdrawals during

And now look at Bate Number 003265, which is the account

23

Again, we see the deposit of $500,000, right?

24

A.

Yes.

25

Q.

Let me just make sure I show you -- and then the next page,
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 47 of 222

47

003266, withdrawals, correct?

A.

Yes.

Q.

Do you see, Ms. Tabernacki, for the month of August, 2010,

from the account ending '8744, any withdrawal in the amount of

$1,000,929 -- no, I'm sorry -- yeah, $1,929,804?

that?

A.

I see it here on the invoice.

Q.

On the invoice.

A.

Yes.

10

Q.

But do you see it on the statement?

11

A.

I do not.

12

Q.

Did that concern you?

13

A.

Yes, because, once again, it had been represented to us

14

that the money in the Haiti account was being used for a

15

specific purposes (sic) that were being shown on the invoices

16

and acknowledged through the other in -- the internal

17

documentation that was provided to us.

18

third-party evidence that that money had been removed from the

19

account for the purposes that we expected.

20

Q.

21

Exhibit C(26), Bate Number 002281, for the period ending

22

June 30, 2010, at the bottom, where it has "cash and cash

23

equivalents, end of period," there's an amount, $34,803,214.

24

Do you see that?

25

A.

Okay.

Do you see

It was not on --

And there was no

Just wanted to go back, really quickly, to

Yes.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 48 of 222

48

Q.

And then for the preceding period, March 31, 2010, and this

is Exhibit C(22), Bate Number 001786, cash and cash

equivalents, end of period, $39,103,693.

From March, 2010, through June 30, 2010, did the

amount of cash and cash equivalents increase or decrease?

A.

the dates.

8
9

This one is -- okay.

Yes.

The first one -- if you could go to

Between March and June, the amount of cash

decreased.

10

Q.

Okay.

Now, did there come a time, Ms. Tabernacki, when

11

OPIC issued a default letter?

12

A.

Yes, we did, in early February.

13

Q.

Of what year?

14

A.

2011.

15

Q.

And why was it that OPIC decided at that point in time to

16

issue a default letter?

17

A.

18

company was ramping up and that we needed to have our claim

19

registered in -- you know, in the local courts.

20

Q.

What was the basis of that default?

21

A.

Uhm, at that point in time, we indicated a default

22

regarding the inability of the company to provide an audit, as

23

well as to not notify us of the litigation associated -- that

24

we had become aware of.

25

Q.

Because we understood that the litigation against the

And who did you send that default letter to?


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 49 of 222

49

A.

Uhm, frankly, I don't recall off the top of my head.

MS. FOSTER-STEERS:

Let's look at C(44).

BY MS. FOSTER-STEERS:

Q.

dated -- sorry -- an e-mail dated February 11, 2011, from

Cameron Alford to Claudio Osorio, Craig Toll, and copied to

Alfred Smith and Lynn Tabernacki, you, right?

A.

Yes.

Q.

That same exhibit, Bate Number 001568, is this a default

Looking at Exhibit C(44), there is a default letter

10

letter?

11

A.

Yes, it is.

12

Q.

And the basis of that default is what?

13

A.

Under (a), it says that the parent company is in default of

14

covenant Section 6.06(b) of the loan agreement, which requires

15

that the parent company deliver to OPIC, within 90 days after

16

the end of each fiscal year, the audited consolidated financial

17

statements for the parent company.

18

the loan agreement extended the due date for compliance with

19

such covenant until August 31, 2011.

20

Q.

21

InnoVida?

22

A.

They were never received.

23

Q.

And then, secondly, in paragraph (b)?

24

A.

The parent company, in default of the covenant set forth in

25

Section 6.08 of the loan agreement, failed to notify OPIC of

The amendment number one of

And were those audited financials ever received from

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 50 of 222

50

the commencement of any legal or arbitral proceedings against

the parent company that involved claims that either

individually or in the aggregate at any given time exceed the

equivalent of $500,000.

that's in the loan agreement.

Q.

what happened?

A.

that -- essentially, that our default letter was, I guess, for

Okay.

And this language mirrors the language

After issuing this default letter, Ms. Tabernacki,

We received a response letter from Alfred Smith indicating

10

lack of a better term, petty and that the defaults were not

11

true defaults and that the company was not only gonna fight

12

them, but would be willing to take action against us for not --

13

would be willing to take action against us.

14
15

MR. SHARPSTEIN:

I think all that would be hearsay.

Is there an exhibit that you're introducing this?

16

MS. FOSTER-STEERS:

17

THE COURT:

18

MR. SHARPSTEIN:

19

THE COURT:

No.

Sustain.
Move to strike all of that.

Ignore the last answer.

20

BY MS. FOSTER-STEERS:

21

Q.

Okay.

22

A.

I believe there was a response from Mr. Alfred --

23

MR. SHARPSTEIN:

24

BY MS. FOSTER-STEERS:

25

Q.

Objection.

That's okay.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
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1
2

Ms. Tabernacki, to your knowledge, when did you cease


contacting or interacting or dealing with Craig Toll?

MR. SHARPSTEIN:

THE COURT:

Objection.

Overruled.

A.

Uhm, I believe it was in January, 2011.

Q.

And this is now Exhibit C(46).

A.

(No response)

Q.

Do you recognize this picture -- photograph, rather?

A.

It's actually a little blurry.

10

Q.

Yes, it is.

11

What are these?

Is that better?

12

A.

Yes.

Uhm, these are pictures that Suzanne Etcheverry had

13

taken in -- while she was on her site visit -- of the

14

earthquake in Haiti and what the homes looked like.

15

MR. SHARPSTEIN:

16

THE COURT:

17

MS. FOSTER-STEERS:

Is there a date on that, Judge?

It's in evidence.
It's already admitted.

18

BY MS. FOSTER-STEERS:

19

Q.

Looking at Bate Number 003392, what is this?

20

A.

This is the makeshift cities that the people were living in

21

five months after the earthquake.

22

MR. SHARPSTEIN:

23

Objection.

No foundation.

24

THE COURT:

It's in evidence.

25

way she wants to.

Excuse me, excuse me.

She can publish it any

It's already in evidence.

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52

MR. SHARPSTEIN:

without foundation.

THE COURT:

MR. SHARPSTEIN:

wasn't there.

You can cross-examine on it.


She didn't take the pictures.

She

There's no date.

THE COURT:

But the witness explanation is

You can cross-examine on all that.

BY MS. FOSTER-STEERS:

Q.

What is this, Ms. Tabernacki?

A.

This is also a tent city that existed in June of 2010.

10

Q.

Bate Number 003394, what is this?

11

A.

This is also a photograph evidencing the state of the

12

housing in Haiti at this point in time, five months after.

13

Q.

Who were these photographs taken by, Ms. Tabernacki?

14

A.

They were taken by Suzanne Etcheverry and provided to me

15

subsequent to her site visit to Haiti.

16

Q.

17

those the conditions that OPIC's monies were -MR. SHARPSTEIN:

18
19

And the conditions that we see here in Exhibit C(46), were

question.

20

Objection.

Objection to the -- this

Objection.

THE COURT:

I haven't heard the whole question yet.

21

BY MS. FOSTER-STEERS:

22

Q.

23

Exhibit C(46), were those the conditions that OPIC's monies

24

were designed -- or, rather, to be used to help for the people

25

in Haiti?

Ms. Tabernacki, the conditions that we see evidenced in

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53

A.

Yes.

living in plastic, to a shelter that would protect them from

the hurricanes and the heat and give them a decent living

space.

5
6

The idea was to get people out of tent cities, out of

MS. FOSTER-STEERS:
Honor.

THE COURT:

MR. SHARPSTEIN:

THE COURT:

10
11

I have no further questions, your

Cross-examination.
May I just have a minute to set up?

Sure.

MR. SHARPSTEIN:

May it please the Court, members of

the jury.
CROSS-EXAMINATION

12
13

BY MR. SHARPSTEIN:

14

Q.

Good afternoon -- or good morning, Ms. Tabernacki.

15

A.

Good morning.

16

Q.

You and I have never spoken or talked about the facts of

17

this case, have we?

18

A.

No, we have not.

19

Q.

On the other hand, you've met with the government on any

20

number of occasions to discuss the facts that you've testified

21

to and prepare your testimony, isn't that right?

22

A.

23

here just prior to, I guess -- what -- no, we had a phone

24

call -- sorry -- last week.

25

Q.

I met with them once previously, and then I met them down

I mean over the past years, couple of years, you've met


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with them and talked to them on any number of occasions, have

you not?

A.

I have not.

Q.

The -- I'm gonna be asking you a lot of questions about the

exhibits and the testimony that you've given.

to say that you're testifying now from your perspective several

years later, after your failed relationship with OPIC, from a

different perspective than you had back in 2009, when you first

met InnoVida and Claudio Osorio?

Just, as I said, that once.

10

A.

11

to understand --

12

Q.

13

But is it fair

Well, certainly, we have to look at the entire relationship

No, the question is -MR. SHARPSTEIN:

Excuse me, your Honor.

14

BY MR. SHARPSTEIN:

15

Q.

16

perspective after you now believe you were defrauded, as

17

opposed to then, when you began the relationship, correct?

18

A.

Of course.

19

Q.

Right.

20

A.

You start in love, and then it all falls apart.

21

Q.

Exactly.

22

A.

(No response)

23

Q.

Like a marriage.

24

A.

I wouldn't say love.

25

Q.

Well, there was a business relationship that was good at

The question is:

You're looking at things from a different

Much like a bad marriage.

And so, there was love at the beginning, right?

Right?
I was giving an analogy.

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the beginning --

A.

Yes.

Q.

-- like under --

A.

Yes.

Q.

-- you know, at the altar in the marriage --

A.

Yes.

Q.

-- and we're all agreeing until death do us part and all of

that, right?
THE COURT REPORTER:

9
10

THE COURT:

Excuse me.

You have to talk one at a time, please.

11

BY MR. SHARPSTEIN:

12

Q.

You know what I mean.

13

A.

We had a common goal to help the people of Haiti, and,

14

therefore, we were aligned.

15

Q.

16

the jury is:

17

in your perspective of what these exhibits looked like now,

18

they look a lot different to you now than when you actually

19

began your relationship with OPIC, right?

20

A.

Well, my relationship with OPIC has always been the same.

21

Q.

I mean your relationship with InnoVida.

22

A.

Yes.

23

relationship, when the suspicions were very high, I looked at

24

them in the same way as I'm looking at them now.

25

Q.

And, again, I know what your job was, but the question for

Okay.

You've looked at a lot of exhibits, you've talked

Uhm, not entirely correct, because at the end of our

So, we'll get to that.

We're gonna go through it

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slowly.

But I want to ask you some questions now, and I'd like

to go back to the beginning of your relationship from how you

looked at it then.

A.

Uhm-hum.

Q.

As opposed to now.

A.

Uhm-uhm.

Q.

And we'll get to the present.

A.

Uhm-uhm.

Q.

So, back in 2009, you had been with OPIC for how long?

10

A.

I guess at that point 14-and-a-half years, almost 15 years.

11

Q.

So, you had a lot of experience there, correct?

12

A.

Yes.

13

Q.

You were in a high-level management position, right?

14

A.

Uhm, yes.

15

Q.

And you dealt a lot with similar type of situations --

16

private companies coming to you for loans to help in emerging

17

countries and things of that nature.

18

A.

Yes.

19

Q.

And that was the purpose of OPIC.

20

understands, when was OPIC created?

21

A.

22

'70s, I believe it was around '72.

23

Q.

'72?

24

A.

Um-hum.

25

Q.

President Nixon?

Okay?

So that the jury

As a separate agency of the U.S. government in the early

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A.

It was actually started under USAID as part of the marshal

plan for the reconstruction of Europe.

out later in the '70s.

Q.

with government to bring opportunities and business to foreign

countries that needed it, correct?

A.

Yes, but also to help those U.S. companies.

Q.

Help the?

A.

To help the U.S. companies grow and expand their businesses

And then we were split

And the idea was to bring in private business to partner up

10

into those markets.

11

Q.

12

to help small companies, emerging companies grow and partner up

13

and bring business around the world.

14

A.

Yes.

15

Q.

That's the idea.

16

A.

Yes.

17

able to make loans of anywhere from $1 million up to $250

18

million, and by exception up to $400 million.

19

Q.

20

money we're talking about here, right?

21

A.

22

a bank does, and we give money back to the U.S. Treasury at the

23

end of the year.

24

Q.

25

the hundred thousand dollar fee from InnoVida to process the

Right.

Because we're -- this is the U.S., and we're trying

But we also deal with very larges companies.

So, this is a substantial operation.

Yes.

OPIC is

That's government tax

But you must be aware that OPIC earns money much like

Like, for example, the fees you earn that you talked about,

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loan and things of that nature.

A.

Yes.

Q.

The $20,000 retainer you were talking about that didn't

come about, but that you were requesting from InnoVida, those

kind of things, right?

A.

interested and is willing to put up their money to move forward

in the due diligence process.

Q.

But a fee you earn.

10

A.

Yes.

11

Q.

So, you're saying that OPIC earns money, as well as gives

12

money out.

13

A.

Yes, correct.

14

Q.

Now -- so, over that 15 years you were there, there had

15

never been a successful relationship with an American company

16

in Haiti, isn't that right?

17

A.

I don't know the answer to that.

18

Q.

Had you ever loaned money to a company that -- working in

19

Haiti to do any kind of business in Haiti?

20

A.

Me personally?

21

Q.

To your knowledge.

22

A.

Me personally?

23

Q.

Do you know whether OPIC did at all?

24

A.

I would suspect it had, but I don't know for certain.

25

Q.

You don't know that.

We earn those fees.

Well, the retainer fee is a good-faith fee that somebody is

No.

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A.

No.

Q.

There were difficulties in Haiti, correct?

notwithstanding the earthquake, which we'll get to, there was

always difficulty dealing with Haiti because of the government

and other business type of situations that are very

un-American.

negative way.

A.

Um-hum.

Q.

But different than the American system, right?

10

A.

I would say Haiti is not so different than all of the other

11

countries that -- or most of the other countries that we deal

12

in.

13

Q.

14

prior to you.

15

A.

No, I don't.

16

Q.

The -- now, InnoVida was a company that I think, if I heard

17

your testimony the other day correctly, that first came to you

18

in late 2009.

19

A.

Correct.

20

Q.

And was that the first opportunity -- this is when you

21

first met anybody from InnoVida, correct?

22

A.

That's correct.

23

Q.

But InnoVida had actually reached out to OPIC prior to

24

that, isn't that right?

25

A.

Even --

I'm not trying to say that in any kind of

But you don't about the relationship with OPIC in Haiti

I don't know.

They spoke to somebody within OPIC who

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directed them to me, if that's what you're referring to.

Q.

that right?

A.

That I don't know.

Q.

Do you know anything about a basketball player, Carlos

Boozer, and his wife -- oh, they're one of the investors that

you saw on the list of investors, correct?

A.

basketball player.

Well, actually came to OPIC through the White House, isn't

Yes, they are.

But, unfortunately, I didn't know he was a


They had to tell me.

10

Q.

He plays for the Chicago Bulls.

11

A.

Sorry.

12

Q.

But did you know anything about the fact that he -- someone

13

he knew from basketball in college named Reggie Love worked in

14

the White House for President Obama?

15

A.

Actually, I didn't.

16

Q.

Did you know anything about a meeting that they had in

17

early 2009 with the president himself to discuss partnering up

18

with OPIC to bring their housing to Haiti?

19

A.

I never heard that, no.

20

Q.

Well -- so, when they came to you, you had no understanding

21

of the connection between Mr. Osorio and the White House?

22

A.

No, I didn't.

23

Q.

No one from the executive office had ever contacted you to

24

inquire about them?

25

MS. FOSTER-STEERS:

Objection.

Asked and answered,

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your Honor, and also calls for hearsay.

THE COURT:

A.

office.

Overruled.

I was never told anything of that nature by our executive

What I -- okay.

I was never told that by our

executive office.

Q.

to, from the executive department of the U.S., right?

A.

I'm not sure what you're referring to.

10

Q.

Do you know a woman named Cheryl Mills?

11

A.

I've heard the name.

12

but I'm not familiar with her.

13

Q.

14

was a lawyer that worked in the White House, that was put in

15

the position to make sure that the operations in Haiti,

16

especially after the earthquake, moved along and money got from

17

our country to Haiti, aid in coordinating.

18

then?

19

A.

20

not involved in that.

21

that initiative started up and, you know, came into OPIC.

22

There were others within OPIC, including Suzanne Etcheverry,

23

that were involved in that.

24

Q.

You're -- that you have superiors in your office, correct?

25

A.

Yes, I do.

Well, there was some contact down the road, which we'll get

I might have seen her e-mails before,

Cheryl Mills was someone that worked in the White House,

Did you know her

Oh, I think you're referring to a Haiti initiative.

I was

This project happened much sooner than

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Q.

You work for someone.

A.

Yes, I do.

Q.

The same way that Mr. Toll worked for Mr. Osorio.

A.

Yes.

Q.

You have a certain position, and those people above you are

your supervisors, who you owe duties of loyalty and fiduciary

duties, as you've called it, correct?

A.

responsible for reviewing and approving my work.

I do have a supervisor, and I do conduct my job.

And he is

10

Q.

11

information about any connection, you know, the White House's

12

desire to keep this particular project going or moving faster

13

than usual?

14
15

MS. FOSTER-STEERS:

Objection.

Calls for hearsay,

your Honor.

16
17

Anybody there ever talk to you about -- or give you any

THE COURT:

I'll allow it for the fact it was said or

it wasn't said, not the truth of the matter asserted.

18

Overrule.

19

A.

Your discussion of this and the White House involvement is

20

the first that I hear about it.

21

Q.

22

connection between Mr. Osorio and the current White House and

23

the prior White House, isn't that right?

24

A.

25

Clinton administration.

Okay.

Well -- but there was a lot of White House

Well, Mr. Osorio represented to us his connections to the


And people were in it -- within it.

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And he had also told me about connections to Nancy

Pelosi, and how he had participated in the -- how he had sat in

her box, I guess, for state of the union address or something.

Q.

There were the pictures you talked about on the wall --

A.

Um-hum, yeah.

Q.

-- in his room.

it was more than just talk.

Clintons, particularly the Bill Clinton Global Initiative.

A.

Um-hum.

10

Q.

Right?

11

A.

That's what he represented to us, yes.

12

Q.

In Haiti.

We're gonna get to those in a minute, but


I mean he was very active with the

13

Well, more than just represented to you.

14

NGO, the Clinton initiative, that were gonna buy the houses

15

that he built, right?

16

A.

17

first.

18

highlighted his relationship with former President Clinton and

19

the Clinton Global Initiative.

20

paper that I had written, it included a discussion about the

21

opportunity for a contract with the Clinton Global Initiative

22

to buy those homes.

23

Q.

24

context here.

25

It was that

Yes, that's -- well, that's what he represented to us at


And when we were evaluating the loan, he had

And if you saw in the credit

The -- well, let's take it -- let's not get too out of


Let's take it in order of how things went down.

Mr. Osorio came to you in late -- in the fall of 2009,


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and with him, he had someone named Zach Waksal.

A.

Yes.

Q.

Right?

You knew Zach Waksal, right?

A.

That was my first meeting with him -- my first and only

meeting with him.

Q.

Did you know who he was in the company?

A.

I don't recall if I was provided a title at that time.

my impression from that discussion was that he was a -- you

But

10

know, he would -- he would develop the financial model that we

11

needed to evaluate the project.

12

Q.

You were in touch with him over that period, were you not?

13

A.

For the period from October through November, when they --

14

well, October, when they provided us information, until

15

November.

16

Q.

17

fill out the application that inevitably came for the OPIC

18

funds on the ten million, isn't that right?

19

A.

20

knowledgeable about the transaction and what was happening.

21

don't recall conversations with Mr. Waksal.

22

Q.

23

a company, your job is to evaluate the company, the people that

24

own the company, the financial stability of the company, and

25

things of that nature, correct?

And then --

And do you -- actually, you were helping he and Mr. Toll

I recall working with Mr. Toll, because he seemed more


I

Now, just so the jury understands, when you are evaluating

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A.

That's correct.

Q.

Because you're an accountant by trade.

A.

I'm not an accountant any longer.

my first two years or so as an auditor.

Q.

You were a schooled and trained --

A.

Yes.

Q.

-- and educated accountant, correct?

A.

Yes, that's correct.

Q.

So, your background is in accounting and finance, right?

10

A.

Yes, correct.

11

Q.

You worked at Pricewaterhouse, I think you said, for a

12

while.

13

A.

Yes, um-hum, in their corporate finance department.

14

Q.

So, this initial conversation, this was a presentation that

15

Mr. Osorio and Mr. Waksal -- I think you said Mr. Toll was

16

there --

17

A.

No, he was not at that first meeting.

18

Q.

He was not?

So, it was Mr. Waksal and Mr. Osorio?

19

A.

Yes, it was.

And Mr. Waksal didn't say anything,

20

Mr. Osorio was just describing in general what the company did,

21

presenting his activities and their interest in opening

22

factories in these emerging markets and pursuing, you know,

23

what role OPIC could play in their activities.

24

Q.

25

Waksal's father was one of the investors in the company, did

I was an accountant in

Did you note -- you learned at some point in time that

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you not?

A.

presented us with the shareholding.

Q.

Okay.

A.

I can't recall who -- what his profession is.

Q.

Owned a big company called ImClone, prescription meds?

A.

Yes, now that you say that, that does refresh my memory,

but....

Q.

I learned that in January when -- I believe, when they

And you know who Harlan Waksal is, his father?

The -- so, at that point in time, I think -- didn't you say

10

that he came with someone from BGR, Jonathan Mantz?

11

A.

Yes, he did.

12

Q.

Now, so the jury understands, BGR is a big lobbyist firm,

13

correct?

14

A.

15

that at the time.

16

liaison consulting firm that was in Washington, D.C.

17

Q.

A government consulting?

18

A.

Um-hum.

19

Q.

And have you had contact with that firm before?

20

had contact?

21

A.

I had not.

22

Q.

So, the -- and I believe that the discussion then, if --

23

and, again, if I say something you don't agree with, just tell

24

me -- the discussion was to build a factory in Haiti, 6500

25

homes per year, having the Clinton Global Initiative buy the

I guess they are.

That would be the term.

I didn't know

I thought that they were a government

Had you

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houses and sell them in Haiti, correct?

A.

anything else about the Clinton Global Initiative.

World Vision and World Food, except for one element.

was, as we were approaching the disbursement, Mr. Osorio was

concerned that it wasn't happening fast enough.

told me that Bill Clinton would be calling me, because he was

very upset that it wasn't happening.

Q.

The Clinton -- after that initial period, we did not hear

Okay.

President Clinton's name. right?

11

A.

He was.

12

Q.

And -- but --

14

MR. SHARPSTEIN:

MS. SMITH:

16

BY MR. SHARPSTEIN:

17

Q.

Ms. Smith, could we have Exhibit C(1)

C(1)?

This was an exhibit introduced and shown to you --

18

MS. SMITH:

19

MR. SHARPSTEIN:

That is C(1).
Right.

Is that the best we can do?

Can we get a little... how about if you go to the -MS. SMITH:

21
22

And so, he

put up?

15

20

And that

And so he was very free to throw around former

10

13

It was

That's as large -- is there a particular

section?

23

MR. SHARPSTEIN:

24

BY MR. SHARPSTEIN:

25

Q.

Well, okay.

So, this is the memo -- I'll talk about it, and then we'll
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go to some sections that we can get bigger -- a memo to James

Polan and Lynn Nguyen?

A.

Um-hum.

Q.

Who's James Polan and Lynn Nguyen?

A.

James Polan is the vice president of finance, small and

medium enterprise finance.

our credit policy group.

Q.

Lynn Nguyen was the acting head of

Okay.
MR. SHARPSTEIN:

9
10

to the --

11

BY MR. SHARPSTEIN:

12

Q.

And, Ms. Smith, if we could go down

The project description, the --

13

MR. SHARPSTEIN:

Maybe the first paragraph right there

14

under the "project description."

15

BY MR. SHARPSTEIN:

16

Q.

"The proposed financing would be used for the

17

implementation and operation of a manufacturing

18

facility, which will fabricate composite structural

19

panels used in the construction of energy efficient,

20

low-income housing in Haiti."

21

So, the proposal back then, in December of '09, was to

22

build a factory in Haiti.

23

A.

24

need for the rapid -- the shipment of the rapid build homes.

25

We had been talking merely about the construction of a factory

Yes.

This was prior to the earthquake, and so there was no

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at that point in time.

Q.

Okay.

All right.

MR. SHARPSTEIN:

3
4

that page, Ms. Smith?

BY MR. SHARPSTEIN:

Q.

And how about the last paragraph on

And here it says:

"The homes will be sold under an upfront

agreement to NGO organizations, including the Clinton

Global Initiative.

The NGOs are working to address

10

the critical housing shortage in Haiti and view the

11

construction of a panel manufacturing facility to be

12

an efficient, cost-effective method for rapid home

13

construction.

14

$10,000.

15

lenders" -- it goes on to the next page.

16

Each home will cost approximately

The NGOs are working with microfinance

But the question is:

That was the proposal, that the

17

Clinton Global Initiative and other people would work with

18

them.

19

A.

20

this is the screening memorandum, that we gather information

21

based upon the representations that the proposed borrower is

22

making to us, and we take that information at face value.

23

take it forward to our management to determine whether or not

24

it's an appropriate project for OPIC to work on.

25

housing in Haiti was aligned with that goal.

Yes.

This is -- as you recall from my earlier testimony,

We

Providing

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Q.

The -- if you go on to the next page --

MR. SHARPSTEIN:

first paragraph is good.

MS. SMITH:

Just one moment.

MR. SHARPSTEIN:

The sponsor, just to highlight... the

Malfunction.
I apologize.
You know what, can we just take --

why don't we take it down for a minute, while we're having some

technical issues, and I'll use the ELMO.

I'm sorry.

Apologize.

10

Okay.

Can we shut that off, and I'll --

11

MS. SMITH:

12

MR. SHARPSTEIN:

She's got the switch.


Temporarily I'll use the ELMO.

13

BY MR. SHARPSTEIN:

14

Q.

15

right?

16

A.

Yes, I did.

17

Q.

So, here you're talking about the sponsor.

18

second paragraph -- well, first you describe Innovida Holdings

19

as an operations in Germany, U.S., Africa, China, and South

20

America.

21

Osorio, chairman, CEO, who holds 85 percent of the shares in

22

the company.

23

strong connections in Miami, Washington, and elsewhere."

24
25

Here you're talking about -- by the way, you wrote this,

And in the

The -- InnoVida Holdings, founded in 2006 by Claudio

"Mr. Osorio is an established businessman with

So, this is your opinion that you're passing on to


your supervisors.
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A.

It's not my opinion.

to me at the time.

Q.

on -- you just -- in other words, whatever he told you, you put

down on the paper or you --

A.

information.

Q.

Well -- I'm sorry, if I'm interrupting you, tell me.

A.

That's all right.

10

Q.

The strong connections in Miami and Washington --

11

A.

Um-hum.

12

Q.

-- you're talking about those connections in Washington to

13

Bill Clinton, Hillary Clinton, the current secretary of state,

14

right?

15

A.

Yes, that's correct.

16

Q.

The Barack Obama White House, these were things he told you

17

and shared with you.

18

A.

I don't recall him telling me about Barack Obama.

19

Q.

Did he tell you that he was -- that he -- his wife, as a

20

matter of fact, was co-chair of the Hillary Clinton for

21

president campaign fund in Florida?

22

A.

I'm sorry, I don't recall that.

23

Q.

None of that.

Well, but aren't you supposed to evaluate that and pass it

Well, you asked me if it was my opinion.

24
25

I was passing on his representations

I gathered the

It seemed plausible at the time.

So --

So, the strong connections you're talking about are


to -FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
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A.

The Clintons.

Q.

-- to the Clintons.

Now, down a little below:

"Preliminary due diligence on Mr. Osorio

indicates that he was named in a class action suit

against CHS, because of his position as chairman of

the company."

So, this was -- you said you Googled his name.

A.

Yes.

10

Q.

And just so the jury understands "due diligence," that is a

11

term that's used in business, where you investigate someone, do

12

your own investigation, separate and apart from what they say,

13

to evaluate something they may say or give some credibility or

14

lack of credibility to a position, right?

15

A.

16

diligence.

17

was performed on Mr. Osorio.

18

performed subsequent to this.

19

Q.

20

CHS" -- that was his company that was sued --

21

A.

Um-hum.

22

Q.

-- "deliberately inflated its share price through GAAP

23

manipulations."

24
25

That is correct.

Okay.

That is correct definition of due

At this point in time, a Google search was all that


More detailed due diligence was

But here you write:

"The plaintiffs asserted that

What did you mean by that?

The allegations were that

he somehow -- GAAP, that's those generally accepted accounting


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principles --

A.

Um-hum.

Q.

-- that you talked about to the jury before, right?

A.

Um-hum.

Q.

So, the allegations were that he manipulated his accounting

in the company to inflate the shares of his stock?

A.

The stock of the company, yes.

Q.

And that you wrote:

in this era."

10

"Such suits are common in this area --

Was that your conclusion?

11

A.

Yes, that was my conclusion, based upon the information we

12

had.

13

Q.

14

$12 million, which included a continued denial of wrongdoing by

15

the defendants."

And that "the company settled with the plaintiffs for

16

So, that's information you got from where?

Google?

17

A.

Yes, that must have been a series of articles.

18

Q.

So, what did you do to follow up on that information?

19

A.

Well, at that point in time, this is the information that

20

we were going on.

21

aware of this particular risk that we would do due diligence on

22

later.

23

I was disclosing it, so that people were

However, because the clients did not pay the retainer,

24

we didn't do any due diligence at that point in time --

25

Q.

Well, but this is the -FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


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A.

-- until after the earthquake.

Q.

Sorry.

This is the same Osorio that comes to you a month

later after the earthquake, right?

A.

Yes, um-hum.

Q.

So, what you're saying here is in December, you did

nothing --

A.

I didn't need --

Q.

-- further to investigate this.

10

A.

I didn't need to at that point in time.

11

Q.

Okay.

12

A.

After the earthquake, when we moved forward, we did do due

13

diligence.

14

Q.

We'll get to that in a little bit.

15

So --

16

MS. SMITH:

We're good.

17

BY MR. SHARPSTEIN:

18

Q.

19

key risks and issues.

20

A.

Um-hum.

21

Q.

"The project team will go in depth on CRDD issues" -- what

22

are "CRDD issues"?

23

A.

Character risk due diligence.

24

Q.

Character risk due diligence?

25

A.

Yes.

-- what you write on the next page, which is INNOPIC-3331,


This is you, right?

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Q.

character is sufficient to loan money to, something like that.

A.

function.

Q.

Meaning a personal evaluation of someone as to whether his

Yes.

We have procedures internally for performing that

"And obtain further information on Mr. Osorio's


previous business dealings."

So, that was something you needed to do as a risk and

an issue that you needed to approach, right?

A.

That's correct.

10

Q.

Along with "the project team will meet with the involved

11

NGOs," the NGOs being like the Clinton initiative, correct?

12

A.

13

Q.

14

Correct.
"And to gauge their willingness to commit to the
project."

15

Was that ever done?

16

A.

17

were coming in short order --

18

Q.

19

No.

We were waiting for the contracts, which we understood

"And due diligence to understand the technologies


used in panel construction."

20

A.

Yes, that's correct.

21

Q.

That's the business.

22

was done, because they didn't pay the retainer.

23

A.

At that point in time, no.

24

Q.

And I think --

25

MR. SHARPSTEIN:

But that wasn't done -- none of it

If we could have C(2).

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Do you want to go back to -- try back here?

I'm very sorry, members of the jury.

We're trying to

technically get back into the exhibits.

MS. SMITH:

No, we're not.

MR. SHARPSTEIN:

I'm sorry.

ELMO.

We're gonna work on that one on a

break and go back the old-fashioned way, your Honor.

sorry.

BY MR. SHARPSTEIN:

Q.

I'm

I apologize.

C(2), in evidence, this is a letter that you wrote to the

10

company requesting the retainer, correct?

11

A.

Yes.
MR. SHARPSTEIN:

12

This -- jury can see that as a whole.

13

BY MR. SHARPSTEIN:

14

Q.

It's dated, by the way, December 15, 2009.

15

A.

That's correct.

16

Q.

A week before Christmas.

17

A.

Ten days.

18

Q.

Ten days.

19

Ten days before Christmas.

And nothing was done with it one way or another,

20

correct?

21

A.

That's correct.

22

Q.

I mean it came -- it's unsigned here on the second page by

23

Mr. Toll.

24

A.

Correct.

25

Q.

So, then you say the earthquake, the tragedy, hit in Haiti
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that we all saw --

A.

Yes.

Q.

-- in January.

A.

Yes.

Q.

And shortly thereafter, within a day, you hear from

Mr. Osorio, isn't that right?

A.

That's correct.

Q.

And he's interested in now partnering up with the NGOs and

going down there to build houses, build a factory, and then try

10

to build houses.

11

A.

To build houses initially.

12

Q.

Okay.

13

just so the jury understands, on average, when someone applies

14

for an OPIC loan, how long is the process from application to

15

acceptance or denial by OPIC?

16

A.

17

I meet with a client -- the process varies significantly,

18

depending upon the client's ability to provide us with the

19

information we need in order to perform due diligence.

20

could be months, it could be years.

21

Q.

I'm sorry?

22

A.

It could be months or it could be years.

23

Q.

It could be months.

24

A.

Yes.

25

Q.

And it could be years, right?

The factory was to come later.

And the -- so, there's an application process.

And

The process -- I get asked this question nearly every time

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

So, it

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A.

Yes.

Q.

But this moved on the fast track, isn't that right?

A.

Absolutely.

Q.

Because there were a lot of people pushing to get aid to

Haiti, help to Haiti, and money to Haiti, right?

A.

I think we all know that was the case.

getting it done as quickly as possible came from within, from

me.

No -- well, I think other people were interested in it, and


The only motivation for

I was pushing people to participate in making this loan

10

happen, because I thought it was very important to get the

11

homes down there as quickly as possible.

12

Q.

13

didn't get any kind of word from anybody higher up politically,

14

the White House or anyone else, that needed to move this, help

15

this loan --

16

A.

I did not.

17

Q.

-- anything of that nature?

18

A.

I did not.

19

Q.

But it moved along at in a very fast track, didn't it?

20

A.

It did.

21

Q.

From application to approval, it was about two weeks?

22

A.

Yes.

23

Q.

Okay.

24

two weeks.

25

A.

And -- so, again, are you saying at this point in time, you

We were very proud of that, actually.


But the same process that takes months or years took

Well, because the clients were providing us with the


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information that we needed to make the evaluation.

And Cameron

and I were working day and night and weekends to make sure that

we followed all of our credit policies and procedures to get it

done as quickly as possible.

Q.

application, which has been introduced as Exhibit 3A by the

government.

page, the initial loan request.

A.

And, again, I think you were assisting Mr. Toll in the

You saw it, correct?

3A -- this is the first

This is the application for financing.

It is a government

10

document that is 15 pages long.

I did not provide him with any

11

information that should be filled in, but, rather, after he

12

filled it in, I gave him guidance as to what type of

13

information we were looking for.

14

regarding where you're procuring elements from, how many people

15

you're going to employ, what the environmental risks are.

16

Q.

17

page 2 of 17, and during her examination, and I highlighted

18

this myself -- this is my highlighting.

19

specific words.

We look for a lot of data

Well, for example, Ms. Foster -- the prosecutor showed you

She showed you these

20

"See detail in attachment relating" -- by the way, so

21

the jury understands -- "sources of project funding (total

22

project cost).

23

the identified market opportunity, the location of the

24

project," et cetera.

25

Please summarize the project, describing

And then filled in here is:

"See" -- and the

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prosecutor asked you about this.

She pointed to these words:

"See detail in attachment related to implementation of

the manufacturing facility in Haiti.

the company will utilize working capital to produce and

ship structural panels for introduction of approximately

500 new homes to the Haitian market immediately.

second attachment includes all updated numbers."

8
9

However, in addition,

Now -- and she asked you about that.

The

That was filled

in by the company, correct?

10

A.

Yes, it was.

11

Q.

Okay.

12

suggested yourself, isn't that right?

13

A.

Was that -- that was actually language that you

(No response)

14

MR. SHARPSTEIN:

15

I'm gonna mark it, and I forgot to ask Karen how you

16

Excuse me, your Honor.

like your -- is it letters or numbers?

17

THE COURT:

18

MR. SHARPSTEIN:

19

appropriate or just Defendant's 1?

20

THE COURT:

Numbers.
If I do CT1, would that be

Defendant's 1 is fine.

21

BY MR. SHARPSTEIN:

22

Q.

23

evidence -- marked as Defendant's 1.


(Defendant's Exhibit 1 marked for identification)

24
25

I'm gonna show you a copy of an e-mail -- it's not in

A.

Um-hum.
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Q.

Take a look at it and see if you recognize it.

A.

Yes.

Q.

Is this an e-mail you wrote?

A.

I believe it is.

Q.

Okay.
MR. SHARPSTEIN:

6
7

I'd move the introduction of 1 for

the purpose of the examination, your Honor.

MS. FOSTER-STEERS:

THE COURT:

10

No objection, your Honor.

One will be received.

(Defendant's Exhibit 1 admitted into evidence)

11

BY MR. SHARPSTEIN:

12

Q.

13

you wrote on January 19, 2010.

14

process.

15

A.

Yes.

16

Q.

And it's 8:43, so you were working late.

17

A.

They get later than this.

18

Q.

And working hard on this.

So, we'll put up here 1, Defendant's 1.

This is an e-mail

This was during the application

19

And you write to Craig Toll and Zachary Waksal.

20

Waksal is the other man you talked about, the young man.

21

A.

Yes.

22

Q.

And it -- "Dear Craig and Zachary," you write, "after

23

reviewing the application you provided, I have the following

24

comments."

25

And you make some comments:

Section 1A, Question 1:

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"Please indicate the project company name as InnoVida

Holdings, LLC, since they will be the borrower.

Haiti as the project company."

You can leave

So, you were giving guidance like this, correct?

A.

Yes.

Q.

So, if we take a look down now, zero in on that 3,

Section 1A, Question 5:

"Please indicate" -- "See detail in attachment

relating to implementation of manufacturing facility in

10

Haiti.

11

working capital to produce and ship structural panels for

12

introduction of X new homes to the Haitian market

13

immediately."

14

However, in addition, the company will utilize

Those are the exact words we just read from exhibit --

15

A.

Yes, they are.

Because I was asking him to reflect the

16

previous conversation we had had to reflect the two elements of

17

the project, which were the shipping of the structural panels,

18

as well as the construction of the manufacturing facility.

19

we had had a conversation about it prior to this e-mail.

20

helping him to have the application fully reflect what was --

21

what was the project.

22

to review the application.

23

need to review it from a policy perspective, and they have to

24

have all the information.

25

Q.

So,

I was

Because I'm not the only one that needs


There are others within OPIC that

Well, the question was, the prosecutor came up here asking


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you questions, showed you 3A, and zeroed in on that specific

language.

that they -- Mr. Toll put in the application on January 19th

and the exact --

A.

To reflect our conversation.

Q.

-- language.

That was specific language that you had suggested

Okay.

So, you were assisting them in filling out the

application and getting it through so that it could be done on

a quicker basis, correct?

10

A.

I wouldn't say I was helping him get it through.

I was

11

helping him to make it as accurate as possible to the

12

discussions that we had had so that others within OPIC could

13

understand the deal.

14

Q.

On one, just to finish it up:

15

"I think these changes should go fairly quickly.

16

Please let me know when you've finished so that I can

17

immediately send it to our policy group."

18

A.

Um-hum.

19

Q.

So, you were moving this along as fast as you could,

20

correct?

21

A.

Yes.

22

Q.

Now, part of 3A -- by the way, the application --

23

A.

Here.

24

Q.

You can just leave that right there.

25

A.

Okay.
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Q.

The application goes to your policy group?

A.

OPIC has two sides of -- well, two elements of evaluation

of every project.

is our policy side.

What is that?

One is the credit side, and then the second

And I think -- well, as I indicated previously, we

evaluate things, such as what is the developmental impact of

the project?

infrastructure created?

the balance of payment effects or the export effects of every

How many jobs are created?

Is there

What are the U.S. effects?

What is

10

project?

11

also, what are the worker rights and what are the environmental

12

impacts?

13

And we do this for every project that we do.

And

So, the information in the application is really to

14

summarize for them what -- you know, what's going on with the

15

project, and we send it on to them.

16

Q.

17

and to provide anything that they need to know, correct?

18

A.

Yes.

19

Q.

And so look at -- and part of it is you want to know who's

20

involved with the company, correct?

21

A.

Yes.

22

Q.

And so, page -- it's 058.

23

Well, actually, they count on you to gather the information

I'm a shepherd.

Here, the policy sponsor, InnoVida Holdings, LLC, so

24

Mr. Toll, who's presenting the application, signs that.

25

below, it has a list of who's actually running this company,


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

But

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correct?

A.

(No response)

Q.

Who the officers and directors are?

A.

(No response)

Q.

See here, please list the legal names, country, of the

project sponsor.

trustee, executive officer, right?

A.

Yes.

Q.

So, here you have the officers, Claudio Osorio -- you knew

Each director, member, general partner,

10

who he was, correct?

11

A.

Yes.

12

Q.

And Mr. Toll down here, you know who he is, right?

13

A.

Yes.

14

Q.

And then there's an Amarilis Moran-Osorio.

15

A.

I had understood that to be Mr. Osorio's wife.

16

Q.

Because I thought I heard you say yesterday when you saw an

17

e-mail that we'll talk about later to Mr. Weis at Royal

18

Caribbean and back and forth from Amarilis Moran, I thought you

19

said you didn't know who she was.

20

A.

21

e-mail.

22

Q.

So, you thought --

23

A.

He had talked about Amarilis, but I didn't make the

24

connection first.

25

Q.

Who's that?

At that point in time, it didn't say "Osorio" on that


So, it was --

But you well knew who she was, didn't you?


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A.

I can't tell you at what point in time I realized who she

was.

Q.

But she was actively involved in the company, was she not?

A.

I never met Amarilis.

Q.

She wasn't at the meeting that you went to January 21st in

Miami?

A.

second or something.

Q.

Came in --

10

A.

She did not sit with us or talk with us.

11

meeting her.

12

Q.

Well, here it lists her as the secretary and director.

13

A.

Um-hum.

14

Q.

Do you know what her job was there?

15

A.

No.

16

Q.

Do you know if eventually she -- eventually, did you learn

17

who she was or what she did in the company?

18

A.

19

dealt with Mr. Toll and Mr. Osorio.

20

Q.

Not that I recall.

She may -- maybe she came in for a

I don't recall

I never had any direct dealings with her, so -- I only

You didn't know -- well, strike that.

21

You didn't know.

22

But you certainly knew -- I mean you didn't mean to

23

tell the jury you didn't know who she was when you saw her on

24

the Royal Caribbean agreement there that we'll talk about.

25

A.

I wouldn't say I didn't mean to tell the jury.

I'm trying

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


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to recollect what that was.

Q.

Amarilis Moran, yesterday.

I think you said something like, I didn't know who that is,

MS. FOSTER-STEERS:

itself, your Honor.

THE COURT:

Overruled.

Objection.

The record speaks for

It's cross-examination.

A.

Can we -- I don't know what I -- if you want to read it

back to me, I'm happy to interpret what it was I meant at the

10

time.

11

Q.

12

who are the investors, who really has a stake in the action

13

here at this company, correct?

14

A.

Correct.

15

Q.

So, on page 75, there's a list of the people that own this

16

company.

17

A.

Um-hum.

18

Q.

Right?

And another thing you want to know in the application is

19

So, here's Mr. Osorio, who has 860 million shares of

20

this company, Class A, and 49 million shares, a total of

21

509 million shares of the company, or, more importantly,

22

85 percent of the company.

23

A.

Yes.

24

Q.

And 94 percent of the voting percentage by votes.

25

A.

Yes.

Right?

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Q.

Controls the company.

A.

Yes.

Q.

Runs, owns, and controls the voting in the company,

correct?

A.

Yes.

Q.

And there's a list of investors.

them, but nowhere on here is Mr. Toll, is that right?

A.

management.

No.

And we'll go through

There's always a distinction between ownership and

10

Q.

Well, Mr. Toll has no ownership interest in this company,

11

correct?

12

A.

Not per this list, no.

13

Q.

No shares of stock, right?

14

A.

Not per this list.

15

Q.

The -- there's a Serenity Holdings Limited -- and if I'm

16

pronouncing this wrong -- Machhour Moukaddem, or something of

17

that nature, Middle Eastern of some kind.

18

A.

Um-hum.

19

Q.

But -- who's he?

20

A.

I had understood that he was a partner in their Middle East

21

operation.

22

Q.

23

operations already going in the Middle East?

24

A.

That's what was represented to us, yes.

25

Q.

Well, did you do anything to check that out, who he was?

They had a factory in the Middle East, and they had

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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A.

We're not required to.

five percent ownership in the project company.

required, since -- we're only required to investigate project

sponsors or project owners that have greater than five percent

or people that have significant management responsibility in

the company.

Q.

Actually, he's got 9.3 percent.

A.

Oh, I'm sorry, I was looking at the percentage of votes.

Then -- okay.

Because he was -- had less than a


We're only

Then I'm sure we did do it.

10

Q.

You did?

11

A.

If it was over five percent, yes.

12

Q.

Did you look into who he was and what his background was

13

and things of that nature?

14

A.

15

not remembering off the bat.

16

mind or pop -- came out in that investigation that led us to

17

believe there was a concern there.

18

Q.

19

Middle East?

20

talk to anybody at the factories or Mr. Moukaddem or not?

21

A.

No, we did not.

22

Q.

And then down the list, Harlan Waksal, we talked about him.

23

That's Zach's father?

24

A.

Yes.

25

Q.

Bernie Carballo, do you know who he is?

Yes.

We would have done a CRDD request.

I apologize for

But, obviously, nothing popped to

And what did you do to check out the operations in the


Did have you someone physically go look there or

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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A.

There was a bio summary that had been presented earlier.

Q.

Jiang Ni (phonetic), 50 percent partner in the China

venture.

do any due diligence on any of them?

A.

the small shareholding that they had in the company and the

negligible voting interests that they had.

Q.

And the others here, Alonzo Mourning?

A.

Yes.

10

Q.

Do you know he was a basketball star?

11

A.

I did.

12

Q.

Georgetown, Miami Heat, you know who he was.

13

A.

I only knew that he lived in Potomac where I live.

14

Q.

And Carlos Boozer you didn't know.

15

A.

Um-hum, I'm sorry.

16

Q.

But, again, Mr. Toll had no ownership interest or stock in

17

this company.

18

A.

Not that I was aware.

19

Q.

Now, you talked about this project.

20

projections that were made by the company and figures.

21

we've seen a lot of statements, and we'll get to some of those

22

specifically.

23

statement that was a projection of how the company would do in

24

regard to this operation, correct?

25

A.

These are the owners.

But do you know any -- did you

We were not required to do any due diligence on them given

Yes.

He lived in Washington for a while.

And there were some


And

But in here, on page 90, there's an income

The writing's a little small, but that does look


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familiar, yes.

Q.

here.

A.

Um-hum.

Q.

The projections, as you look down there, the cost of the

materials, et cetera, et cetera, and down, projects that the

first year the company will suffer a loss of $4,232,000,

correct?

A.

Yes.

10

Q.

So, they're gonna operate at a loss that first year.

11

A.

This is the gross profit, is shown negative.

12

surprise me that in the first year of operations a start-up

13

company would lose money as it's beginning to ramp up.

14

Q.

15

bat, in the first year -- I mean these were the numbers you got

16

from Mr. Toll, correct?

17

A.

18

was going to be used for these purposes, so that there would be

19

a loss.

20

for anything else that --

21

Q.

22

I'm asking.

23

just asking, these are the numbers, these are the figures

24

Mr. Toll gave you to show you that here at the end of the first

25

year, the net income of this project would be negative

I'll try to get -- I'm gonna -- let's zero in on year one

It does not

And so, you went into this understanding that right off the

Yes, I did.

And what I had understood was that the money

I did not have an understanding that it would be used

You know, if you just see -- pay attention to the questions


And I know you want to say a few things.

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

But I'm

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$5,522,000.

A.

Yes, that's correct.

Q.

Now, in order that -- because this thing was moving along,

you actually physically visited the Miami operation or the

office and the factory in Miami in January -- January 21st of

2010.

A.

Yes.

Q.

And you spent the whole day here, correct?

A.

Yes, we did.

10

Q.

And you saw the factory, you saw the operation, you saw the

11

ongoing.

12

A.

Um-hum.

13

Q.

And do you have a recollection of that day and everything

14

that went on?

15

A.

16

had a conversation, and --

17

Q.

You actually took -- I'm sorry, go ahead.

18

A.

No, I was just gonna expound on what you're asking, which

19

is, you know, meeting with Claudio Osorio and Mr. Toll, and

20

later in the day Mr. Patricoff, to talk about the company and

21

understand it a little better and then to go through the term

22

sheet.

23

Q.

24

detailed notes so you'd remember, correct?

25

A.

And you made notes and took note of many things?

Not everything.

I remember that I was there, and that we

And you actually took notes.

Yes, correct.

You kept like ten pages of

That would assist me in writing the credit

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approval memo.

Q.

help you if you had those notes to refer to?

A.

It depends what your questions are.

Q.

Okay.

the actual product.

A.

Yes, um-hum.

Q.

And the panels.

I'm gonna ask you some questions about that day.

So, you saw the factory.

Would it

And you were told about

You saw it actually being made, right?

It was described to you.

Do you remember who took you on that tour of the

10

factory?

11

A.

I remember Claudio Osorio taking us on the tour.

12

Q.

And Mr. Osorio spent a great deal of time explaining what

13

he did, right?

14

A.

Yes, um-hum.

15

Q.

He told you that they had factories in Abu Dhabi and that

16

they built a presidential palace and an administration building

17

and all of that?

18

A.

Yes.

19

Q.

The video.

20

A.

Um-hum.

21

Q.

So, he showed you a video.

22

A.

Um-hum.

23

Q.

That they built an Abu Dhabi office building, a floating

24

house in Germany, and other projects.

25

A.

He showed us a video.

Yes, um-hum.
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Q.

And the -- it was apparent to you that this was an

operation, it was ongoing, it was up and running, at least in

Miami, and they were producing.

with those -- you know, where they sold the panels or anything

like that?

A.

producing them in the Middle East and that the Miami operation

was recently up and running.

head where they said they were selling them.

Did he tell you what they did

Uhm, well, what I had -- uhm -- I knew that they were

I don't recall off the top of my


I -- yeah.

10

Q.

So, then you wanted -- there you were face-to-face with

11

Mr. Osorio.

12

background then live and in person from him, correct?

13

A.

Exactly.

14

Q.

So, did you talk about his background at CHS and the

15

troubles that came at the end of that operation?

16

A.

17

Mr. Toll, since he was at CHS, as well.

18

Q.

19

out what happened at CHS, right?

20

A.

Yes.

21

Q.

Was there any litigation pending?

22

A.

Right.

23

Q.

Was there a settlement?

24

A.

Right.

25

Q.

And one thing you were concerned about was accounting

I'm sure you wanted to know a little bit about his

Yes, we did.

We talked about it with both Mr. Osorio and

Well, you wrote notes to yourself that you needed to find

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controls, because --

A.

Yes.

Q.

-- you noted to yourself, how can we be sure it won't

happen again?

A.

Correct.

Q.

So, you were concerned that what you Googled and what you

saw.

you talk to them about it?

research as to what had actually occurred, the cases, things of

What did you do then -- and what did you do then?

Did

Or did you do some independent

10

that nature?

11

A.

Both.

12

Q.

And how did you do the research on the cases?

13

A.

Uhm, we have a separate function within OPIC where we

14

request such a request.

15

provided on the sponsor disclosure report, they do a background

16

check into various, I guess, information sources to provide us

17

with the data on the CRDD.

18

Q.

And who did that?

19

A.

I believe it would have been Christopher Cochran.

20

Q.

And that was all gathered between the 21st and the 26th

21

when you wrote your --

22

A.

23

Because that's something that can happen in tandem.

24

necessarily have to happen after I've met with them.

25

Q.

Given the information that was

No, it might have been between the 13th and the 26th.
It doesn't

But on the 21st, you're in Miami, and you write these notes
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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to yourself.

A.

Yes.

Q.

So, you still had those concerns, correct?

A.

Well, I felt it was important to address them with

Mr. Osorio and Mr. Toll directly.

Q.

concerned about that, weren't you?

A.

Yes.

Q.

Were there audited financial statements at CHS and will

And when the audited financial statements (sic), you were

10

there be auditors going forward --

11

A.

Correct.

12

Q.

-- in this operation?

13

a lot about the audited financials in general.

14

A.

Correct.

15

Q.

There's a difference between audited and unaudited

16

financial statements, isn't there?

17

A.

There is.

18

Q.

Something you know quite well as an accountant and an

19

educated finance major in college, correct?

20

A.

21

accounting --

22

Q.

And your work at Pricewaterhouse, right?

23

A.

That was finance, as well.

24

Q.

And, actually, OPIC generally requires audited financials

25

of every company before a nickel goes out the door, isn't that

Right?

Because you've told the jury

Finance major, international finance in graduate school,

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right?

A.

No, that's not correct.

Q.

Not correct.

A.

No.

Q.

Well, here, you had some flag here about a problem that had

existed in a prior company.

right?

A.

It was important for us.

Q.

Yet the money went to InnoVida without audited financials,

So, that must have been important,

10

isn't that right?

11

A.

It did.

12

Q.

You, OPIC -- and when I say "you," OPIC.

13

A.

Um-hum.

14

Q.

You, your agency, loaned the money understanding that there

15

would be a waiver of any financial -- audited financials for at

16

least until the end of August of 2000 --

17

A.

Until the end of May.

18

Q.

Until the end of May, and then it became August 31st.

19

A.

And then it became August.

20

In that early period, there was -- when you work with

21

the borrower, you do have a level of trust.

While we do due

22

diligence to ascertain that the information that they are

23

providing us is correct, we also rely on their representations

24

that, indeed, if we're asking for an audit, they will give us

25

an audit.

And further, given the desire and the need to have


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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the houses down in Haiti as quickly as possible, it didn't make

sense to wait another six months for an audit for a company

that hadn't had one before.

Q.

audited financials, right?

A.

yes.

Q.

And you, OPIC, waived that.

A.

We did.

10

Q.

Through negotiations with the lawyers that were

11

representing the company, InnoVida, correct?

12

A.

13

myself and Mr. Toll, and the lawyers were brought in to reflect

14

that.

15

lawyers that actually draft the documentation.

16

business deal was that they would have until May and then

17

subsequently amended until October -- I mean -- August, sorry.

18

Q.

19

lot of -- Mr. Osorio was the one that was telling you most of

20

the information about the logistics and what was planned, how

21

to move this operation, correct?

22

A.

That is correct.

23

Q.

He told you about the fact that they were gonna start

24

shipping equipment and panels through the help of a military

25

heir, right?

So, you, OPIC, were willing to loan the money without the

We were willing to make a disbursement prior to the audit,

No.

I would say that the -- all negotiations were between

They were -- we were all on the phone.

But it's the


But the

So, they told you about the project, and they told you a

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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A.

Yes.

Q.

Through General Wesley Clark.

A.

Correct.

Q.

American retired general at that time, right?

A.

Um-hum.

Q.

Who was donating cargo space.

A.

Correct.

Q.

Okay.

was about to be or was a board member of the company?

Did you ever -- I mean, didn't he tell you, Clark

10

A.

Yes, he did.

He was about to be the following week.

11

Q.

And at the -- he told you about other board members --

12

we'll get to that in your report -- but Jeb Bush, the former

13

governor of Florida, brother of the former president?

14

A.

He did mention that, yes.

15

Q.

Son of the former president?

16

A.

Yes.

17

Q.

And several other local dignitaries in Miami and

18

businessmen, serious businessmen?

19

A.

Who are you referring to?

20

Q.

George Perez owns Related Company?

21

A.

(No response)

22

Q.

A big large real estate firm.

23

A.

Perhaps.

24

Q.

Well, I'll get to your report in a minute.

25

A.

Okay.

Perhaps.

I can't recall.

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(954)769-5657

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Q.

Steven Green, who is he?

A.

of Haiti?

Q.

Right.

A.

Um-hum.

Q.

Who worked in the Clinton White House, who was arranging

barge space so that they could ship things.

A.

Um-hum, um-hum.

10

Q.

And he told you about his relationship with the president

11

of Haiti at that time, Preval?

12

A.

Yes, correct.

13

Q.

With his wife?

14

A.

Well, that Claudio Osorio's wife had a relationship with

15

Preval's wife.

16

Q.

That would be Amarilis.

17

A.

Yes, correct.

18

Q.

And there are actually pictures of Claudio Osorio with the

19

president of Haiti up in his office there, isn't that right?

20

A.

It sounds familiar, yes.

21

Q.

Let me....

22
23
24
25

But he told you about a lot of things.

Ambassador Green,

If I recall, was he the -- I'm asking you -- the ambassador

The ambassador to Haiti.

Well, with his wife.

MR. SHARPSTEIN:

Let me mark, your Honor, as

Exhibit 2 -THE COURT:

All right.

Is this a good spot to break,

Mr. Sharpstein?
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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101

MR. SHARPSTEIN:

THE COURT:

Sure.

All right, members of the jury, we're

going to go ahead and recess for lunch.

not to discuss the case or allow it to be discussed in your

presence.

6
7

And I'm going to ask you to come back at 1:45.

So, have a nice lunch.

We'll see you back at quarter

to two.

COURTROOM DEPUTY:

(The jury exited the courtroom)

10

Remember my admonition

THE COURT:

Please rise for the jury.

And, again, Ms. Tabernacki, during the

11

break in your testimony, you're not allowed to discuss your

12

testimony with anyone.

13

THE WITNESS:

14

THE COURT:

We'll see you back at 1:45.


Thank you.

And if there's nothing else to come before

15

the Court, we'll be in recess until 1:45 on this case, 1:15 on

16

other matters.

17

(The Judge exited the courtroom)

18

(Luncheon recess taken at 11:54 a.m.)

19

20
21
22
23
24
25
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102

WEDNESDAY, JUNE 26, 2013, 1:50 P.M.

(The Judge is already on the bench)

THE COURT:

Counsel are present.

Anything to come before the Court before we bring the

All right.

MS. SELMORE:

THE COURT:

MR. SHARPSTEIN:

11

Mr. Toll's present.

jury in?

10

We're back on the record.

THE COURT:

No, your Honor.

You ready, Mr. Sharpstein?


Yes, your Honor.

All right.

Let's see if we can get

Ms. Tabernacki back in.

12

(The witness entered the courtroom)

13

THE COURT:

14

Ms. Tabernacki, do you understand you're

still under oath?

15

THE WITNESS:

16

THE COURT:

17

COURTROOM SECURITY OFFICER:

18

(The jury entered the courtroom)

19

THE COURT:

20

Yes, I do.

All right.

Please rise for the jury.

Counsel concede the presence of the jury

and waive its polling?

21

MS. FOSTER-STEERS:

22

THE COURT:

23

Let's bring in the jury.

Yes, your Honor.

Mr. Sharpstein, concede the presence of

the jury and waive its polling?

24

MR. SHARPSTEIN:

25

THE COURT:

I do, your Honor.

I'm sorry.

And did everyone follow my admonition not

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to discuss the case or allow it to be discussed in your

presence?

All right.

Mr. Sharpstein, you may continue.

MR. SHARPSTEIN:

At the time, I was approaching the witness with an

May it please the Court.

exhibit marked for identification.

exhibits -- it's a Composite Exhibit 2A through G.

8
9

I'm gonna approach with

CROSS-EXAMINATION (CONTINUED)
BY MR. SHARPSTEIN:

10

Q.

Take a look at the photographs there and see if you

11

recognize them.
(Defendant's Exhibits 2A through 2G marked for

12
13

identification)

14

A.

15

room?

16

Q.

17

conference room on the wall that you talked to Mr. -- that you

18

mentioned to the prosecutor in your direct?

19

A.

20

representative of the type of --

21

Q.

This is --

22

A.

I didn't memorize the photos that were in the conference

23

room.

24
25

It could be.

Are they the ones that were in the conference

Do you recognize those as photos that were in the

They could be the photos.

THE COURT REPORTER:

They're definitely

Mr. Sharpstein, I need you on a

mike and you can't be talking on top of each other.


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A.

hanging in the conference room.

them exactly.

with high-level individuals.

5
6

These are representatives of the types of photos that were

I just know that they represented Mr. Osorio

MR. SHARPSTEIN:

I'd move the introduction of 2A

through G, your Honor.

MS. FOSTER-STEERS:

THE COURT:

I don't -- I didn't memorize

Improper foundation, your Honor.

All right.

Sustain.

BY MR. SHARPSTEIN:

10

Q.

So, they were pictures of Mr. Osorio with Nancy Pelosi, the

11

secretary -- the speaker of the house, correct?

12

A.

Perhaps, yes.

13

Q.

Well --

14

A.

I don't recall if there was a picture of Nancy Pelosi.

15

You're showing me a picture here.

16

are similar to the pictures that were in the conference room.

17

They may have been.

18

Q.

19

evidence right now.

20

A.

Oh, okay.

21

Q.

So, I'm asking you, do you recollect whether you saw a

22

picture of Mr. Osorio with the speaker of the house,

23

Ms. Pelosi?

24

A.

No, I do not.

25

Q.

Okay.

I --

I could indicate that these

The judge sustained the objection, so those aren't in

He did mention Ms. Pelosi several times in his


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conversation with you, did he not?

A.

Yes.

Q.

And one of the contexts was that, in fact, he had much

contact with the speaker of the house.

discussing his situation previously with CHS, that he said he

had to be vetted for his contact with these politicians like

Pelosi, and that they cleared him, and that his background

check would show up fully positive, is that right?

A.

And so, when you were

I don't recall him saying that with regard to Nancy Pelosi.

10

I do recall him saying it with regard to Jeb Bush.

11

Q.

12

show you your notes.

13

yourself and see if it refreshes your recollection.

14

A.

Okay.

15

A.

Well, these are my notes, but I'm not --

16

Q.

Again, the question is -- you've read the notes -- are

17

those the notes you took that day contemporaneous with your

18

meeting on January 21, 2011, at the offices of Innovida?

19

A.

Yes, these are the notes that I took.

20

Q.

And does it refresh your recollection as to the issue that

21

I addressed in my last question?

22

A.

No, it does not.

23

Q.

Okay.

24

and his relationship with them required him to be fully vetted

25

and that his clearance was at the highest level?

Let me show you -- I'm not gonna mark this for them and
And don't read them, but read them to

Did he mention that Bill Clinton and Hillary Clinton

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A.

He told an anecdote that led us to believe that he had been

vetted, yes.

Q.

Clinton, who was at that time the secretary of state, did he

not?

A.

Yes.

Q.

So, he told you that when he needed something, Hillary

Clinton responded immediately, right?

A.

I don't know that he said that.

10

Q.

Well, he talked about his relationships with the

11

politicians, with Bill Clinton, the ex-president, right?

12

A.

Yes.

13

Q.

He told you that Jeb Bush, the former president's son, was

14

on the board, right?

15

A.

Yes.

16

Q.

As a matter of fact, I think one time when you were with

17

him, he picked up the phone and said, hello Jeb, right?

18

A.

Yes, he did.

19

Q.

You actually noted that once.

20

A.

Yes.

21

Q.

That he had a personal relationship, that that was one of

22

the board members, and that another high-level ex-politician

23

was someone that had his ear, right?

24

A.

25

they could just talk to one another, yes.

Well, he told you that he had the ear of the -- of Hillary

Had his ear, I don't know.

But he had a relationship where

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Q.

And I think you told Ms. Foster-Steers that that didn't

impress you.

when making your recommendation as to whether he would get --

the company would get the OPIC loan, isn't that right?

A.

part or the second part --

Q.

Well, we can break it down.

A.

Um-hum.

Q.

You told Ms. Foster-Steers it didn't impress you, right?

10

A.

Correct.

11

Q.

Okay.

12

positively in your report, which we'll get to, 3B --

13

A.

I was not --

14

Q.

-- and you wrote on the 26th of January, five days after

15

this meeting.

16

A.

17

important to the transaction in that those individuals already

18

had access in Haiti and could arrange and help facilitate the

19

movement of these panels to build the homes in Haiti.

20

Q.

21

Wesley Clark, who could mobilize the military for him, right?

22

A.

Um-hum, um-hum.

23

Q.

Yes?

24

A.

I don't know the military.

25

Mr. Osorio was representing to us that he could mobilize

But it was something that you noted positively

You sort of asked a two-part question there.

The first

But it impressed you enough that you noted it very

I was not impressed with it so much as I felt it was

Well, he already told you that.

He told you that he had

But he was able -- he was --

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shipment of the panels.

Q.

with Wesley Clark donating cargo space.

A.

Um-hum.

Q.

Right?

A.

Um-hum.

Q.

You can't say "um-hum," because the court reporter will get

upset with you.

A.

That he had -- he could organize shipment by military air

Oh, I'm sorry.

10

I apologize.

Yes, that's correct.

11

Q.

And that Ambassador Green, who, by the way, I think was the

12

former ambassador for Singapore that worked under the Clinton

13

administration, that he could have barge space.

14

things he was telling you, right?

15

A.

Yes.

16

Q.

Did you or anybody on your behalf verify any of that

17

information?

18

A.

19

have this relationship.

20

some of these individuals within the first week after the

21

earthquake, which he did send us the photos relating to that,

22

as well.

23

Q.

He was on a flight to Haiti --

24

A.

Yes.

25

Q.

-- with who?

And these were

Uhm, well, I... the photos seemed to indicate that he did


And, also, he was on a flight with

Bill Clinton.

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A.

Clinton was on the flight.

Clinton that I recall.

Q.

you, but what, if anything, you did to verify those

relationships and that -- those issues that he said he could

accomplish.

A.

diligence process was.

10
11

I believe he represented that Bill

I guess the question that I had for you is not what he told

Forgive me, I'm trying to think through what the due

commitment that -MR. SHARPSTEIN:

Your Honor, that's nonresponsive.

Objection.

14

THE COURT:

15

MR. SHARPSTEIN:

16

THE COURT:

17

I didn't see pictures of Bill

With regard to this, in terms of the approval and the

12
13

I'm not positive.

You have to let her finish her answer.


Okay.

If it's nonresponsive, then you can move

to strike.
MR. SHARPSTEIN:

18

Okay.

Yes, your Honor.

19

A.

In this initial period, prior to the commitment, we

20

had not done our due diligence fully, but we knew that we could

21

do that due diligence prior to a disbursement.

22

waiting for were these contracts to come through from CGI --

23

Clinton Global Initiative and World Vision as they had

24

represented to us.

25

knew Nancy Pelosi or if he knew Bill Clinton.

And what we are

We had not checked to see if he actually


We had seen a

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YouTube video of Bill Clinton at his house that he had showed

us that seemed to lead me to believe, unless these were all

Photoshopped, that he did know them.

Q.

See, YouTube, you said.

A.

Um-hum.

Q.

The question is, you work for the U.S. government.

A.

Yes.

Q.

Did you go through any official channels to find out

whether or not what he was saying was true or correct?

Google you said before.

10

A.

No, I did not go through official channels such as that.

11

We conducted our typical due diligence as we would on any

12

borrower.

13

Q.

14

mentioned before lunch that someone had done a due diligence

15

report on Mr. Osorio and the CHS issue?

16

A.

As well as --

17

Q.

Who was that?

18

A.

As well as Mr. Toll, as well as the other parties to the

19

transaction that we had listed as project sponsors.

20

Q.

21

diligence report on that.

22

A.

It came from our information officer.

23

Q.

And you have it officially in the files?

24

A.

Yes, it should be.

25

Q.

And if that is available, we'd ask that it be produced to

Well, you keep talking about due diligence.

And you

You know, I didn't see in your files, the OPIC files, a due
Who did that report?

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us.

I'm not gonna stop here, but maybe I'll have questions

if we get it.

A.

Okay.

Q.

And the due diligence period we're talking about here --

because this is January 21st, and by January 26th -- you called

Mr. Toll to tell him that the loan had been approved and that

the lawyers could talk to each other and finalize the deal,

isn't that right?

10

A.

To -- well, the -- the way that it works in terms of our

11

commitments, is we have -MR. SHARPSTEIN:

12
13

A.

14

have.

Well, you're asking me, and I'm explaining to you what we

THE COURT:

15

Your Honor.

You have to answer yes or no.

Then you

16

could explain your answer.

17

BY MR. SHARPSTEIN:

18

Q.

19

called Mr. Toll to tell him that the loan was approved.

20

no?

21

A.

I do not recall if I called him on the 26th.

22

Q.

I'm gonna show you a document, which I'll mark as

23

Defendant's Exhibit 3 at this point for identification.

24

look at it.

25

The question was simply:

On the 26th of January, you


Yes or

Take a

Just read it to yourself.

(Defendant's Exhibit 3 marked for identification)


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A.

Sorry.

Q.

You're not a party to that.

introduction of it.

whether or not Mr. Toll called you -- you called Mr. Toll on

the 26th to tell him that the loan had been approved and that

even before the lawyers spoke to fix out the minor terms in the

term sheet?

A.

However, I would say, based upon my experience with all of my

I'm not moving the

Does it refresh your recollection as to

Well, it does not refresh my memory about a phone call.

10

borrowers, that I would have made a call.

11

Q.

But you don't recollect that you called him.

12

A.

I don't recollect a phone call.

13

to interrupt.

14

Q.

15

at any time prior to the lawyers getting together?

16

A.

There -- I do not recollect a specific phone call.

17

Q.

Because you didn't write your report, which is

18

Exhibit 3B -- excuse me one second -- your report in evidence

19

as 3B, until January 26th, right?

20

A.

Yes.

21

Q.

This is a report to your superiors looking for approval for

22

the loan.

23

A.

Yes.

24

Q.

Right?

25

I'm sorry, I didn't mean

Do you recollect phoning to say the loan had been approved

So, did you call and -- was the loan approved already
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before you even filed this report with your superiors?

A.

No.

Q.

And --

A.

This is an e-mail from Mr. Toll.

connection between that and that.

Q.

visit.

A.

Um-hum.

Q.

So, five days after the visit, you are writing your report

It's not approved until it's approved by my superiors.

I cannot make the

We'll get to 3B in a minute, but let's finish up that

10

recommending that the loan be approved, correct?

11

A.

Um-hum.

12

Q.

You have to say yes or no.

13

A.

Yes.

14

Q.

And the -- when was it actually approved?

15

A.

It would have been within a day or so of this.

16

would have been January 26th or 27th.

17

Q.

Within a day.

18

A.

Yes.

19

Q.

So, again, so the jury understands, you testified earlier

20

that sometimes these OPIC loans take months, if not years.

21

This one goes soup to nuts from the call on the 13th to the

22

26th, under two weeks, approved.

23

A.

24

the 13th, when I received that phone call, until the point of

25

disbursement, which would then be from mid-January, February,

That's not correct.

So, it

Soup to nuts would be from the time of

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March, April, late April.

At which point, that would be very

consistent with the number of months that would take that loan.

This was to get the approval in order to move ahead.

still due diligence that was being done and documentation that

we were waiting for.

Q.

phone call to the approval of the loan --

A.

Um-hum.

Q.

-- two weeks.

10

A.

Yes.

11

Q.

Now, when you went down there to the business, you also

12

asked questions about what the business actually was, right?

13

A.

Um-hum.

14

Q.

And Mr. Osorio explained to you that this was a business

15

that essentially, at this point in time, was selling factories,

16

right?

17

A.

Yes, that's correct.

18

Q.

He kept talking about this concept of factory in a box.

19

A.

Yes, he did.

20

Q.

Remember that?

21

A.

Yes, he did.

22

Q.

That the purpose of this business at this point was to get

23

investors as joint venturer investors to give money to buy a

24

factory that they would own together with InnoVida, the larger

25

company, right?

There was

Maybe soup to nuts was a bad choice of words, but from the

Commitment of the loan, yes.

Um-hum, yes.

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A.

Yes, that's correct.

Q.

And you knew at this particular point that very few of

these factories were actually up and running, isn't that right?

A.

That is correct.

Q.

Because you went through and asked specifically what was

going on with the factories.

Angola, there was a joint venture agreement, money had come in,

but the factories were still being constructed, right?

A.

Yes, um-hum.

10

Q.

And that in the United Arab Emirates, Ras al-Khaimah, that

11

there was a factory there, but there was one being constructed,

12

right?

13

A.

Yes, that is correct.

14

Q.

And in Aruba, there had been a factory that was being

15

constructed, but it was taken down and being sent to China,

16

right?

17

A.

That's what he had represented, yes.

18

Q.

And that in Tanzania, there was a factory that was

19

90 percent complete at that time.

20

A.

21

extent, but that seems to represent the general context of the

22

conversation.

23

Q.

24

South Africa that were inactive, right?

25

A.

The -- yes.

You learned that in India and in

These are details I don't recall to that

There were two that had gone up in the Czech Republic and

(No response)
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Q.

I mean this is what you were told.

A.

If that's what my notes reflect.

specifically which --

Q.

One in Mississippi that was not active at that time, right?

A.

Correct.

Q.

So, there was one in Miami that was active and one in the

United Arab Emirates, Ras al-Khaimah, right?

A.

operational.

I don't recall

And one in Louisiana that they had indicated was up and

10

Q.

Okay.

So, whatever money, whatever profit they were

11

representing to you that they had made that they had, that

12

Osorio told you, was by selling interests in these joint

13

ventures to build these factories, right?

14

A.

Correct.

15

Q.

They weren't up and running and selling a lot of product at

16

that time, correct?

17

A.

18

that they were sharing in the profits of those entities.

19

Q.

20

not unfinished goods, right?

21

A.

(No response)

22

Q.

You know what, I'm gonna -- I'm asking you now what you

23

recollect Mr. Osorio telling you on 21st.

24

Exhibit 4, which is the statement, the financial statement, and

25

look at that in a minute.

Well, they had represented in their financial statements

We're gonna -- sharing in the profits of the entities, but

We'll get to

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A.

Okay.

Q.

But what I'm asking you here is what you learned there in

your visit, in your due diligence visit.

A.

subsidiaries and entities involved with the company.

of --

Q.

A company -- I'm sorry -- tell me when you're finished.

A.

Some of which were operational and some of which were --

had been established, but were not operational yet.

Um-hum.

That they had a very complex structure of


Some

10

Q.

11

was making was selling these factories or interests in

12

factories.

13

A.

14

were selling these factories, but that what they were doing was

15

they were building facilities as well.

16

mentioned, there was a video of the construction of some palace

17

or something in the Middle East.

18

Q.

They had built some projects in the Middle East, right?

19

A.

Um-hum.

20

Q.

And in Germany?

21

A.

Um-hum.

22

The fundamental profit, the fundamental money the company

Well, you know, what it was also represented is that they

THE COURT REPORTER:

As you recall, as you

I'm sorry.

23

A.

I'm so sorry.

Yes.

24

Q.

So -- and one of the major issues here was going to be --

25

one of the major risks was going to be the conditions in Haiti,


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correct?

A.

(No response)

Q.

Not just the physical conditions, but the political

conditions and the legal conditions that would be an impediment

to actually building a house, having someone own their own home

there, isn't that right?

A.

they would be buying the homes and constructing them under the

relief efforts that they were undertaking.

That's why we wanted the contracts with the NGOs, because

10

Q.

11

be issues with legal issues, like eminent domain, whether the

12

government owned the property, et cetera, et cetera.

13

risks there in Haiti that made this -- even this good-faith

14

project have a lot of question marks, correct?

15

A.

16

project.

17

believed that the project would be successful.

18

Well, notwithstanding the NGOs, you knew that there would

A lot of

Well, I'm not sure that I would call it a good-faith


I mean, obviously, we were moving forward because we

And then the second part of your question, if you

19

could please just say that again, and I will answer that part

20

of the question.

21

Q.

22

which is 3B, that's in evidence.

23

I have up in front of the jury here that you wrote -- this was

24

after your visit, after the application, correct?

25

A.

We'll get to the risks.

Maybe we should go to your report,


And this is your report that

Yes, that's correct.


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Q.

And this is the direct loan financing, InnoVida Holdings.

This is your report, Lynn Tabernacki, Cameron Alford, to your

superiors.

A.

Yes.

Q.

And you're recommending in this report that the policy

group, that OPIC go through with this loan, right?

A.

That -- yes, the credit policy group, yes.

Q.

In it -- I'm gonna focus on this paragraph here that begins

"InnoVida is well placed."

10

You write:

"InnoVida is well placed to support the recovery

11

efforts in Haiti.

12

relationships with the NGO community (such as the

13

Clinton Global Initiative, Habitat for Humanity, and

14

World Vision), as well as the Haitian government and

15

U.S. persons of political influence that are able to

16

assist in advancing the company's plans."

17

The company has strong

So, here, you're putting forth to your supervisors --

18

to your superiors these issues that Mr. Osorio put to you about

19

his political support, his connections, his ability to get

20

things done in the political world of the U.S., correct?

21

A.

22

says, "InnoVida is well placed to support the recovery efforts

23

in Haiti."

24

relationships.

25

No.

If you read my words, if we're gonna parse them, it

It doesn't say that InnoVida has formed these

This is a recommendation for the approval, and the


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expectation is that they will have these contracts prior to a

disbursement relating to this.

Q.

NGO community (such as the Global Initiative, the Clinton

Global Initiative)."

A.

That's true.

Q.

That is based on what he told you, right?

A.

Yes, that is true.

Q.

And you write it here.

10

A.

I do.

11

Q.

For instance, you go on, "Former president Bill Clinton is

12

personally in contact with the company to organize its

13

logistical and support needs."

You write, "The company has strong relationships with the

14

Now, once again, did you talk to President Clinton?

15

Did anybody --

16

A.

No.

17

Q.

-- from your -- did you assign anybody to contact him?

18

A.

No, I did not.

19

when we got that contract, so there was no need to.

20

Q.

Because the rubber was gonna hit the road

"Wesley Clark is arranging for military transport

21

of the initial structural panels.

Steven Green

22

(former CEO of Samsonite Corporation and former

23

ambassador to Singapore) will provide barge space on

24

ocean vessels, when necessary, to ship the factory

25

components.

And secretary of state, Hillary Clinton,

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has made available State Department resources to

assist with logistical arrangements."

Did you verify that?

A.

The Hillary Clinton aspect was true, because at that point,

we had -- not myself, but there were others within OPIC that

had been making arrangements with the State Department for the

activities that were going on on the ground.

Q.

Her personal contact with Osorio and InnoVida?

A.

No, I did not know that for certain.

I do know that there

10

was logistical assistance being provided by the State

11

Department for the NGOs and others that were down there looking

12

to assist.

13

Q.

You further write here in the next paragraph:

14

"Company had already planned the construction of

15

manufacturing plant in Haiti prior to the earthquake" --

16

that's the 2009 discussion that you had with them?

17

A.

18

Q.

Yes.

That's correct.
"And CGI" -- that's the Clinton Global

19

Initiative -- "had previously indicated that it would

20

be willing to contract to purchase 6500 homes in Haiti

21

from InnoVida within the next year."

22

Again, this is all the information you gathered from

23

Mr. Osorio at your meeting with him.

24

A.

25

well as Mr. Patricoff.

Well, and Mr. Craig Toll was at that meeting as well, as

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Q.

Waksal and Mr. -- the 2009 meeting that they had already

planned the construction of the plant that they -- 6500 homes,

you wanted a $20,000 retainer, they didn't give it.

that that meeting?

A.

I could assume what was meant here when I wrote the word

"previously" was that I was making a connection to the earlier

indication that the Clinton Global Initiative was interested in

10

homes in Haiti, and that continued at this point in time, given

11

that Mr. Osorio had represented that former President Clinton

12

was interested and was taking flights down there.

13

Q.

14

however, given the basic necessity for housing in such a large

15

portion of the population, InnoVida's ability to respond to the

16

need immediately and the resources at its disposal, it is

17

anticipated that payment for the housing panels will be

18

available from:

19

A.

20

Q.

21

Well, I thought that was a meeting that was just Zach

I can't recall which meeting that came out of.

Wasn't

I -- if --

So, just to finish off this paragraph, "You recognize,

International aid organizations."

Yes.
"Two, foreign governments, and/or, three, Haitian
citizens with financial capability."

22

A.

Yes.

23

Q.

So, you understood that even if they shipped and built, in

24

order to accomplish this, you would need people to pay for the

25

houses.
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A.

Correct.

Q.

And the Haitian citizens with financial capability was a

big question mark at that point, wasn't it?

A.

That's correct.

Q.

And foreign governments?

foreign governments at that time?

A.

were many nations that had gone into the market looking to find

ways to provide relief and assistance.

Was there commitments from

Well, this is two weeks after the earthquake, and there

So, a foreign

10

government could possibly have been an offtaker for these

11

arrangements.

12

MR. SHARPSTEIN:

13

THE COURT:

Excuse me a second, your Honor.

Okay.

14

BY MR. SHARPSTEIN:

15

Q.

16

the InnoVida board of directors.

17

is Jeb Bush, former governor of Florida and brother of George

18

Bush; Chris Korge, businessman and entrepreneur, he's highly

19

involved in political circles, served as the national finance

20

chair for Hillary Clinton's presidential campaign and National

21

Finance Committee for President Obama; Ryan Freedman, president

22

of Coral Holdings; George Perez, Related; Waksal -- so you put

23

forth that this was a well-constructed company with a board of

24

dignitaries and successful individuals.

25

A.

In your report, you pass on to your superiors the makeup of

Yes, it was.

I won't go on here, but this

It appeared that these individuals were

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participating as board of directors, and so one could get

better comfort, perhaps, than other people that were not quite

as successful in their previous business dealings.

Q.

just earlier -- the financials that you put forward -- it's

kind of blacked out here, but that says 2010.

projections for the project with profit and loss, indicating

that the company would do this at a $5,792,000 loss that first

year, if assuming they took on the project in the way that it

And in your report -- again, I think we talked about this

And this is the

10

was anticipated.

11

A.

12

project or is it with regard to InnoVida Holdings?

13

Q.

Financial projections for the project.

14

A.

Okay.

15

Q.

This was based upon -- remember I showed you earlier in the

16

application that page that gave the projections?

17

it from there, correct?

18

A.

19

I'm distinguishing it from InnoVida Holdings, which had more

20

extensive operations as we understood it.

21

Q.

22

up a little -- there was a risk here.

23

risk -- is that mitigants?

24

A.

I can't see it, but I'm assuming, yes.

25

Q.

Well, you understood that there would be issues in getting

I'm sorry, could you show me -- is this with regard to the

Perhaps.

You just took

If it was for the project, yes, but that is --

You recognized in your report that -- we have to back this


You wrote "risks" and

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this project up and running in Haiti, correct?

A.

As with any project that we would do.

Q.

Well, particularly this one, after an earthquake, in

sometimes underdeveloped country, correct?

legal and physical risk to being able to get the land, build

the houses, things like that.

A.

situations.

Q.

There was a lot of

Yes, but it's not unusual for OPIC to be dealing in those

Excuse me one second.

10

You write here:

11

"The risk that the plant will be completed

12

specifically due to uncontrollable country factors is an

13

appropriate risk for OPIC to bear."

14

You understood that there were some risks down

15

there -- uncontrollable, unknown, that you would take a risk

16

that they might not even be able to build the factory, isn't

17

that right?

18

A.

19

answer is no, I don't believe that that assessment is correct.

20

The risk -- OPIC is an agency of -- let me explain.

The

OPIC is an agency of the U.S. government that is

21

designed to take political and country risk, to operate as a

22

bank in markets where there are no banks, to provide long-term

23

loans, ten years, 20 years, in countries where the longest loan

24

you can get is three years, five years, et cetera.

25

So, OPIC, we often -- one of our business lines is to


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offer political risk insurance.

to default on a contract, you know, as a participant in a

transaction, OPIC takes that risk.

with every country in which we operate.

country risk is not unusual.

Q.

Do we have a bilateral treaty with Haiti in this regard?

A.

OPIC should, yes.

Q.

Do you or don't you?

A.

I will have to confirm with my lawyer.

10

Q.

I won't go on anymore on this.

11

And so, if a government were

We have bilateral treaties


So, OPIC taking

We do in every country.

The jury can look at that.

But the -- fundamentally what occurred was that you

12

approved, you recommended that this loan go through on the 26th

13

of January, 2011.

14

A.

15

structural panels and for the construction of a manufacturing

16

facility to make those panels down in Haiti.

17

a loan for the money to go to other places that were

18

undetermined.

19

Q.

20

financials, the financial statement that you were looking for

21

through September 30, 2009, correct?

22

A.

Yes, correct.

23

Q.

And it was Mr. Toll who, two days later, on January 28th,

24

provided that to you, correct?

25

A.

I recommended that a loan go through for the shipment of

I did not approve

And one of the things you were waiting for in there was the

I'll show you --

Correct.
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Q.

I'm not trying to trick you here.

is in evidence.

A.

Yes.

Q.

From Craig Toll to you.

MS. FOSTER-STEERS:

MR. SHARPSTEIN:

MS. FOSTER-STEERS:

BY MR. SHARPSTEIN:

Q.

Here's Exhibit 4, which

What exhibit number, please?

This is Exhibit 4, C(4).


C(4)?

Craig told to you:

10

"Please let me know when the press release is issued."

11

"Please let me know when the press release is" -- so,

12

it's a done deal at this point, isn't it?

13

A.

14

commitment.

15

That's not my area of expertise.

16

Q.

17

26th and telling him it's done, you know, you're gonna get your

18

loan, let the lawyer -- your lawyer talk to my lawyer, all

19

that?

20

A.

I said --

21

Q.

You don't remember -- you remember talking to him about

22

press releases and what was gonna be said and done?

23

A.

24

questions.

25

said is, I do not remember a phone call.

No.

The press releases are often made at the time of a


They are not made at the time of a disbursement.
But that's the timing.

So, you don't -- you didn't remember calling him on the

What is required is every time -- I'm sorry you asked two


Let me answer the first one.

The first one you


I said, no, I don't

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remember a specific phone call, but it would not be unlikely

that I would make a phone call if the project had been

approved.

happened.

Given that they were both the 26th, that could have

With regard to the press release, every time we issue

a press release upon a commitment of a loan, our external

affairs office requires that we get the client's permission to

issue that.

Q.

And so --

I'm not asking about every time.

I'm just asking about

10

this time.

11

A.

12

the press release is issued," which means that the client was

13

aware that there was going to be a press release.

14

Q.

How would he be aware of that?

15

A.

Of course, yes.

16

Q.

Again, I think I asked you this before lunch, but -- so

17

you're saying there was no pressure from any political agency,

18

group, department, White House saying, get that money out, we

19

need to get some money to Haiti, we need to get it down there

20

now?

21

A.

No.

22

Q.

And they wanted this approved right away, and they wanted

23

press releases.

24

A.

No, I did not say that.

25

Q.

But I mean this is a time of crisis, and you're talking

Well, it's saying right here that "please let me know when

You told him, right?

We have to get their permission.

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about approving a loan in five days and getting a press release

out.

A.

was approved within two weeks.

You're changing it.

It was not approved in five days.

It

A press release was done as is done for every

commitment that OPIC issues.

Q.

particular time?

A.

At this particular time, this was the first one.

10

Q.

So, Mr. Toll sends you -- I'll back up so the jury can

11

see -- this is a copy of the balance sheet.

12

concentrate for a minute here, because it comes up on a number

13

of occasions when the prosecutor was asking you.

14

InnoVida group of companies combined balance sheets, unaudited

15

pro forma.

16

A.

Yes, I do.

17

Q.

That means it's not verified by an independent auditing CPA

18

firm, right?

19

A.

Correct.

20

Q.

And that these are the company's own projections, right?

21

A.

Yes, that's correct.

22

Q.

And pro forma, you -- I think you said yesterday that was

23

someone trying to show off or something like that?

24

A.

Yes.

25

Q.

Who?

How many other commitments were being done in Haiti at this

Okay.

I'd just like to

Here it is,

You know what "unaudited" is, don't you?

That's what I felt at the time.

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A.

I thought Mr. Toll.

Q.

Well, so did you ask him, Mr. Toll, what do you mean by

pro forma here in this balance sheet?

A.

was pertinent to the discussion.

financial statements.

Q.

was -- what does "pro forma" mean to you as an accountant?

Let's start with that.

I did not ask him what pro forma was.

I didn't feel that

I was looking at the

Didn't he tell you this was pro forma in the sense that it

10

A.

More so from finance -- a finance perspective, pro forma

11

means in such a form, basically is if this were to happen.

12

Q.

If this were to happen.

13

A.

And it's used in the context of financial projections into

14

the future.

15

Q.

16

are projections, we don't want them, we want something else?

17

A.

18

because they reflected historic dates.

19

why he had used the name -- the words "pro forma."

20

Q.

21

through, that's mine, but here if you look at the current

22

assets -- let's just look at September 30, 2009, "cash and cash

23

equivalents," the company reports $35,863,360.

24

A.

Yes.

25

Q.

And did you know what that was?

It's not used as to historic dates in the past.

So, did you say -- did you write him back saying, if these

It was clear by the dates that they were not projections,


I did not ask him if --

So, if you look at this now -- I put an orange marker there

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A.

Cash.

Q.

And did you know where it was?

A.

No, I did not.

Q.

Did you assume it was in a bank account?

A.

Yes, I did.

Q.

And do you know -- we've talked a lot about other bank

accounts.

35,000 (sic) in cash was?

A.

The 35 million?

10

Q.

I'm sorry, you're right, 35 million in cash.

11

A.

No, I did not.

12

of companies.

13

statements and entities that would reflect this balance.

14

was not my job to go and check bank balances at that point in

15

time, which is why we wanted the audit, to confirm the numbers.

16

Q.

17

assets, including accounts receivable -- that's money owed to

18

it.

19

A.

Um-hum.

20

Q.

That's money not paid to the company, but out in bills due

21

and owing, correct?

22

A.

Yes, correct.

23

Q.

Inventory of 20 million.

24

A.

Roughly, correct.

25

Q.

And about 72, 73 million in assets.

Did you ever see that bank account or see where that

Because this represented the InnoVida group

Which meant to me that there were multiple bank


It

As you go further down here, so the company has total

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Now, down here, these assets, the 60 million, did you

know what that was?

A.

It reflects property, plant, and equipment.

Q.

Did you know what the investment in MRC was?

A.

I did at the time.

may have something to do with the Middle East entity.

Q.

Well, it's a substantial amount there.

A.

Um-hum.

Q.

Did you learn that it was an investment in a ret -- modern

I can't recall.

I believe that -- that

10

residential community, MRC, that they were building in

11

Abu Dhabi, partnered with another group there?

12

A.

Yes, that does sound familiar.

13

Q.

But as you look down here, I think you've told Ms. -- the

14

prosecutor that, see, look at this, and it's a strong company,

15

it's a growing company, it's a thriving company, something like

16

that, right?

17

A.

18

growing as it was showing changes between the two years.

19

Q.

20

type of revenues they're bringing in here.

21

understood -- and no one told you otherwise -- Mr. Toll or

22

anyone -- that the company was deriving its revenues by selling

23

factories, right?

24

A.

They did indicate that, yes.

25

Q.

But that they weren't making money by selling product yet,

Does that --

I did say it was consistent with a company that would be

So, if you look to the third page, you can see exactly what
And, again, you

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right?

A.

(No response)

Q.

Well, take a look at --

A.

I see what you're saying --

Q.

Let's take a look right here.

of September 30, 2009, factories, $30 million.

A.

Yes.

Q.

Meaning selling interests in building those factories

derived for the company, $30 million.

Revenues of the company as

10

A.

Yes, correct.

11

Q.

Finished goods, zero.

12

A.

Correct.

13

Q.

You saw that.

14

any of its product then, was not a thriving profit-making

15

company selling panels around the world, was it?

16

A.

As of September 30, 2009 --

17

Q.

Okay.

18

A.

-- it had not.

19

Q.

Let's look back to December 30, 2008 -- got to back up just

20

so we can have it all in context -- finished goods as of

21

December 31, 2008, nothing.

22

A.

23

and running at that point in time.

24

facility, they had equipment that was producing panels at the

25

time and led us to believe that they were able to ship those

Zip.

Nothing.

You knew that.

That is correct.

Right?

The company wasn't selling

They didn't have the Miami facility up


When we were at the Miami

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panels to Haiti to build the homes.

Q.

we'll look at them -- and, again, these are in evidence, the

jury can see them, I'll go through them -- but on every single

one --

A.

Um-hum.

Q.

-- until maybe the very end in 2011, there was zero for

finished goods.

A.

Right, which explains why we needed the audit.

10

Q.

Okay.

11

were --

12

A.

Well, clearly --

13

Q.

There's nothing to audit there, because there's nothing --

14

there's a zero.

15

A.

I would agree with you on that, there is nothing there.

16

Q.

But I mean you knew this -- you're not trying to tell the

17

jury that in 2009, when you got Exhibit 4 -- or in 2011 -- ten,

18

when you got Exhibit 4, that you thought this company was some

19

booming, thriving company selling millions of dollars' worth of

20

these panels, building houses all around the world.

21

taking -- did you?

22

A.

I'm not sure what your question was.

23

Q.

I think you've told -- you're right.

24
25

You know, the ones you keep -- you get in the future -- and

You needed the audit to see whether or not they

What do you have to audit a zero for?

You were

Is that what you're trying to tell them?

It was very inartful.

But the prosecutor stood up here and said, well, did


you think this was a profit-making operation and a company
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thriving?

And you said, yes.

Right?

A.

believe that it was a business that was in operation and was

successful in what it was doing at the time.

Q.

Selling factories.

A.

And making panels to sell and to ship down to Haiti.

Q.

They're not selling any panels.

A.

But as of October 30, 2009, they were representing to us

that they hadn't, but they had the factory in Miami that was

I don't know if I used the word "thriving," but, yes, I did

10

operating.

11

Q.

12

generally accepted accounting principle --

13

A.

I did not at that time.

14

Q.

You did not?

15

A.

I did not know that they were generally accepted -- not

16

prepared in accordance with Generally Accepted Accounting

17

Principles.

18

Q.

Well, here it says "unaudited pro forma."

19

A.

That doesn't mean that it --

20

Q.

That's --

21

A.

Sorry, please finish.

22

Q.

Okay.

23

A.

Just because it's unaudited does not mean that it's not

24

prepared in accordance with Generally Accepted Accounting

25

Principles.

So, again, you knew that these statements were not

As time went on, yes, it was clear.


Is that --

Certainly, an accountant and -- with the

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experience of Mr. Toll would know how to prepare financial

statements in accordance with Generally Accepted Accounting

Principles.

Q.

Except that these were unaudited pro forma projections.

A.

They were not projections.

September 30, 2009, 2008.

Q.

would require audited financial statements.

A.

And I answered that that was not correct.

10

Q.

Well, in this case, you got -- let's start with this --

11

you're saying that -- I thought we looked at your contract,

12

which we'll get to --

13

A.

Um-hum.

14

Q.

-- that required audited financial statements.

15

A.

Yes.

16

Q.

Right?

17

A.

Previously, you had asked me -- okay, we won't parse words,

18

but let me just distinguish.

They were on a historic date,

And, again, I think I asked you before, that generally OPIC

19

A lot of times, when a client comes in to us, they are

20

a small and medium enterprise that does not have experience,

21

and so they do not have audited financial statements yet.

22

However, we always require audited financial statements going

23

forward.

24

Q.

25

InnoVida required audited financial statements.

The -- again, the contract that you were executing with

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A.

Yes, it did.

Q.

And then your lawyer, Mr. Alfred (sic), and the lawyer for

the company, Mr. Smith, negotiated that the audited financials

wouldn't be due.

A.

Mr. Toll.

first-time audit, it takes much longer, because you need to --

there's so much more documentation to substantiate the assets

and liabilities of the company.

No, they did not negotiate that.

I discussed that with

Because as accountants, we both understood that as a

10

Q.

The lawyers put it together in the final draft of a

11

contract, correct?

12

A.

Yes.

13

Q.

So that audited financials were not required until much

14

later, first May and then August, correct?

15

A.

Correct.

16

Q.

And to jump ahead a little bit, later on you were

17

questioning about the audited financials.

18

Mr. Toll about that, and he told you that they had hired

19

Ernst & Young, and a gentleman by the name of Tim LaMacchia to

20

do an audit.

21

A.

Yes.

22

Q.

Correct?

23

A.

Correct.

24

Q.

And he wrote to Ernst & Young in about April of 2011 that

25

LaMacchia and Ernst & Young could talk to you about the audited

They reflect our conversations, yes.

When you asked

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financial, correct?

A.

typical requirement that we have.

Q.

never given you that permission, but that's not the case.

had told Ernst & Young and waived any right that they could not

talk to you, to tell you whatever you wanted to know, right?

A.

What I was indicating is, I'm aware that there was a letter.

10

do not know that it was actually sent to Ernst & Young, but I

11

will assume for the sake of this discussion that it was.

12

However, when I said "without the permission," it meant at that

13

point in time, I did not contact InnoVida to let them know that

14

I was calling Ernst & Young.

15

Q.

16

Mr. Toll on a regular basis.

17

courteous and professional with you at all times, isn't that

18

right?

19

A.

A little crusty.

20

Q.

Well, maybe that's his personality.

21

professional with you.

22

responded to you.

23

A.

Yes, that is correct.

24

Q.

And you did talk to Mr. Osorio from time to time alone,

25

isn't that right?

I'm not positive it was in April, but, yes, that is a

But you -- I think you said something earlier that he had


He

Uhm, you probably were listening to my words very closely.


I

I called them of my own volition.

So -- and then you had a -- you said you were dealing with
You talked to him.

He was

But he was

When you asked for something, he

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A.

From time to time.

It was sporadic.

He would call me

generally when I was pushing for information and unable to get

it.

heartstrings about how important this was to Haiti, and we had

to make it happen, and some very high-level political official

was waiting for it to get done.

I would receive a call from Mr. Osorio pulling the

And then he would represent that he had contracts,

which, of course, didn't come.

Q.

The -- I think you talked to -- I'm trying to locate the

10

particular exhibit -- you talked to the prosecutor about a

11

report you got from Haiti from someone that worked with you,

12

Ms. Etcheverry.

I'm trying to locate --

13

MR. SHARPSTEIN:

Excuse me one second, your Honor.

14

I have so many blue folders here.

15

(Discussion had off the record among counsel)

16

BY MR. SHARPSTEIN:

17

Q.

18

trying to do things in Haiti, construction projects in Haiti,

19

isn't that right?

20

A.

Yes.

21

Q.

I mean they had crews there, they had people there, they

22

were trying to construct --

23

A.

24

It was represented that they had a site, and that it had

25

foundations, and there were people there.

I mean you became aware of the fact that InnoVida was

Well, I don't know for certain that they had crews there.

I don't know that

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they were InnoVida employees or even subcontractors.

I can't

be certain.

Q.

Ms. Etcheverry.

A.

own projects.

Q.

Here's C(15).

A.

Um-hum.

Q.

This is Ms. Etcheverry to you on June 14th, copies to other

Well, here's C -- you weren't there, but you sent

Well, Ms. Etcheverry was there of -- because she had her

10

people, pictures from Haiti.

11

Sanchez, the project foreman" -- that's the project foreman for

12

InnoVida, isn't it?

13

A.

Yes, it is.

14

Q.

They were down there.

15

trying to build structures down there, isn't that right?

16

A.

That's what was being represented.

17

Q.

Well, you eventually learned, and you saw pictures of that

18

were sent to you, that they built a supermarket, right?

19

A.

20

information, I would receive pictures from the executive

21

assistant of Mr. Osorio showing a building being constructed.

22

I cannot verify whether it was in Haiti or whether it was an

23

InnoVida building.

24

Q.

25

down there.

Yes.

She says, "According to Mario

They were on the ground.

They were

Every time that we had troubles, and we couldn't get

Well, I mean just so the jury fully understands, they went


They had a hard time building the houses because

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of the eminent domain issue, that no one would build a house,

buy a house and give it to someone that wasn't gonna own it.

There was a governmental problem that had made it impossible to

physically go build the houses, because you couldn't buy the

land to build it on, right?

A.

7
8

That is correct.
MS. FOSTER-STEERS:

Objection.

Assumes facts not in

evidence, your Honor.

THE COURT:

10

Overruled.

Cross-examination.

11

A.

The -- I'm sorry, could you please repeat the question.

12

Q.

There were problems in Haiti that were of a great nature,

13

legal issues, that made it difficult, if not impossible, to own

14

and buy land that you could put a house on, sell it to someone

15

that they would actually own.

16

A.

17

people, relief organizations down there, the land issues, which

18

is why we made it a significant condition for the second

19

disbursement.

20

Q.

Well, there was no second disbursement.

21

A.

Well --

22

Q.

But with the first, 86 houses were built down there, and --

23

right -- by InnoVida?

24

A.

25

We had another gentleman go down to Haiti, as well, in August,

Yes, that is correct.

That is something that was faced by

I don't know that there were 86 houses built down there.

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and he never saw any homes either.

Q.

little....

Hum.

Well, you got pictures -- I'll get to those in a

"So, Mario Sanchez was on a site about three acres,

and the site of three phases of a project that will include

bungalows, a hotel and supermarket, and homes.

"The pictures are of the construction of the

bungalows.

The stone structure is the hotel reception for

the hotel that will be constructed.

10

"I don't see any constructed homes.

11

Mario, the home haven't been built yet."

12

According to

This is the report you're getting.

13

A.

Yes.

14

Q.

And this is in June.

15

there, they were building, isn't that right?

16

A.

17

the purpose of our financing.

18

Q.

19

them.

20

taken by your own people.

21

A.

22

notice, they're foundations of buildings, there's -- there

23

doesn't appear to be any con -- any erection other than the one

24

building, which he indicated was of a different nature.

25

Q.

InnoVida had people there, crews

It says, "I did not see any constructed homes," which was

Well, there's pictures again.

The jury can take a look at

These are projects, construction -- these are pictures


Are those the InnoVida panels there?

This -- these appear to be the InnoVida panels.

But if you

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(Discussion had off the record among lawyers)

BY MR. SHARPSTEIN:

Q.

that -- explaining some other issues that she note -- well, I'm

just gonna -- let me -- I'll approach.

You actually got a follow-up from Ms. Etcheverry, an e-mail

6
7

I'm gonna show you what's been marked as Defendant's


Exhibit 3.

Take a look at it, see if you recognize it.

THE COURT:

MR. SHARPSTEIN:

10

I think you already had a three.


Four it is.

I forgot one more.

(Defendant's Exhibit 4 marked for identification)

11

A.

Thank you.

12

Q.

Do you recognize that?

13

A.

Yes.

14

Q.

Is this an e-mail that you received from Ms. Etcheverry two

15

days after the 14th and the 16th?

16

A.

Yes.

17

MR. SHARPSTEIN:

18

MS. FOSTER-STEERS:

19

THE COURT:

20

(Defendant's Exhibit 4 admitted into evidence)

21

BY MR. SHARPSTEIN:

22

Q.

Move the introduction of four.


No objection, your Honor.

Four will be received.

Again, this is -- well, let me show the jury.

23

This is an e-mail from Ms. Etcheverry to you:

24

"Written up some notes on my trip to Haiti.

25

I'm

sending them along in case you're interested."


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1
2

And she explains to you something she explained in the


other e-mail.

She made site visits -- Port-au-Prince.

"I visited InnoVida's construction site in

Port-au-Prince.

building bungalows, hotel and supermarket, (phase II)

and housing.

but I did not visit it.

potential business as they are answering calls from

NGOs, embassies, and other companies that are in need

10

They have a three-acre site.

They're

The manufacturing site is closed (sic),


They seem to have a lot of

to house their employees in Port-au-Prince."

11

A.

May I make one correction, is in that one sentence, "The

12

manufacturing site is close by."

13

Q.

Oh, is close by.

14

A.

Yes.

15

Q.

Again, "manufacturing site is close by."

16

visit it.

17

making panels?

18

A.

19

understanding from when she was down there speaking with Mario

20

Sanchez, I imagine.

21

Q.

Well, that's the InnoVida foreman who's down there --

22

A.

Yes.

23

Q.

-- with people that are building, trying to building --

24

A.

Right.

25

Q.

-- and this is what they're working on, right?

But she didn't

That would be the manufacturing site where they were

I -- I'm not sure what that was.

Those were, I guess, her

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A.

Right.

Q.

There's a -- talk about a school.

A.

Yes, these are the other projects, not related to InnoVida.

Q.

Okay.

investment issues.

And she does point out to you in this e-mail the


The big problem here.

"Land title:

Big problem.

She writes:

Some private

landholdings are being threatened by eminent domain to

use the land to resettle people.

afraid the government, with little finances, will be

10

Some people are

able to compensate them.

11

"Other properties may have multiple ownership

12

claims.

Even before the earthquake, landowners were

13

not often able to produce evidence of clear land

14

title.

15

means -- "cadastre system to determine legitimacy of

16

title.

17

destroyed in the earthquake.

18

challenges (sic) it to institute a central system that

19

ascertains land ownership and a transparent appeal and

20

adjudication process.

21

think the government is taking steps towards that."

There's no real" -- and I don't know what this

What little documentation that existed was


The government's

No one I talked to seems to

22

A.

That's correct.

23

Q.

This was the issue I addressed before.

24

A.

Um-hum.

25

Q.

You can't have land ownership, so how can you build houses
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on land that no one owns?

Because the government has no

system.

that right?

A.

InnoVida.

these homes.

Q.

there and help people.

A.

Um-hum, yes.

10

Q.

You give them money, they go there to try to build, and

11

they run into a system that makes it impossible to do what they

12

wanted to do, isn't that right?

13

A.

14

to the money that they had taken for the purpose of shipping

15

the panels.

16

Q.

That's what was going on down there at the time, isn't

Yes.

But that's not what was represented to us by


They felt that there was an opportunity to construct
That's why we were shipping the panels.

The day after the earthquake, they have an idea to go down

That's correct.

And so, I was left wondering what happened

Well, actually, they build, again -- excuse me.

17

(Discussion had off the record among the attorneys)

18

THE COURT:

19
20
21
22
23

Is this a good spot to take a break,

Mr. Sharpstein?
MR. SHARPSTEIN:

Yes, your Honor.

I'm sorry.

I just

located the exhibit.


THE COURT:

Well, we can take a break now or you can

keep going, whatever you want to do.

24

MR. SHARPSTEIN:

25

THE COURT:

Break or keep going?

Break is good.

Okay.

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All right, members of the jury, we're going to take a

15-minute recess.

Remember my admonition not to discuss the

case or allow it to be discussed in your presence.

you back in the jury room in about 15 minutes.

COURTROOM SECURITY OFFICER:

(The jury exited the courtroom)

THE COURT:

We'll see

Please rise for the jury.

And, again, Ms. Tabernacki, during the

break in your testimony, you're not allowed to discuss your

testimony with anyone.

10

THE WITNESS:

11

THE COURT:

12

We'll see you back in 15 minutes.


Thank you.

And if there's nothing else to come before

the Court, we'll be in recess for 15 minutes.

13

(The Judge exited the courtroom)

14

(Recess taken at 3:00 p.m. until 3:18 p.m.)

15

(The Judge entered the courtroom)

16

THE COURT:

17

We're back on the record.

18

Counsel are present.

19

Anything to come before the Court before we bring the

20

All right.

Mr. Toll's present.

jury in?

21

MS. FOSTER-STEERS:

22

THE COURT:

23

MR. SHARPSTEIN:

24

THE COURT:

25

Please be seated.

No, your Honor.

Ready, Mr. Sharpstein?


Yes, your Honor.

All right.

I guess we need to get

Ms. Tabernacki.
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(The witness entered the courtroom)

THE COURT:

Ms. Tabernacki, you understand you're

still under oath?

THE WITNESS:

THE COURT:

I understand.

Okay.

Please resume the stand.

bring in the jury.

COURTROOM SECURITY OFFICER:

(The jury entered the courtroom)

THE COURT:

10

Let's

Please rise for the jury.

Counsel concede the presence of the jury

and waive its polling?

11

MS. FOSTER-STEERS:

12

MR. SHARPSTEIN:

13

THE COURT:

Yes, your Honor.

Yes, your Honor.

And did everyone follow my admonition not

14

to discuss the case or allow it to be discussed in your

15

presence?

16

THE JURY:

17

THE COURT:

18

Yes.
All right.

Mr. Sharpstein, you may

continue.

19

MR. SHARPSTEIN:

Yes, your Honor.

May it please the

20

Court.

21

BY MR. SHARPSTEIN:

22

Q.

23

I asked you whether you became aware of projects that were

24

being actually done and accomplished in Haiti by InnoVida.

25

you recollect?

Ms. Tabernacki, before the break, we were talking about --

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A.

As I said, I did receive some pictures, but I cannot verify

that they were actually in Haiti.

Q.

already put it into evidence, but they didn't show it to you.

I was not there.

Well, let's take a look at an exhibit.

The government

Exhibit 25.

MR. SHARPSTEIN:

We're gonna try again with the electronics here.

BY MR. SHARPSTEIN:

Q.

If we could just pull that up?

So, to go back to the beginning, the first page.

This is

10

a -- this is, again, in evidence.

The government put it in.

11

A.

Um-hum.

12

Q.

From Claudio Osorio, Thursday, September 23rd, to you and

13

Cameron Alford, copy to my client, Mr. Toll.

14

this.

Take a look at

And attached to it was a brochure.

15

Let's take a look at it as it appeared.

16

This was an InnoVida brochure that's sent to you, OPIC

17

and InnoVida projects in Haiti.

Did you get this?

18

A.

Probably, yes.

19

Q.

Did you review it?

20

A.

I might have flipped through it, yes.

21

Q.

Well, it was sent to you to show you the projects and the

22

work that was actually being done in Haiti by InnoVida.

23

A.

These are renditions.

24

Q.

Well, let's take a look.

25

a look.

Right?

It's not actual photos.


These are renditions?

Let's take

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A.

Um-hum.

Q.

There's a rendition of the Royal Caribbean school, not the

Royal Caribbean contract you talked about -- we'll get to that

in a minute -- but an actual school that Royal Caribbean paid

for InnoVida to build.

Okay.

That's a rendition.

Let's go.

There it is being built right there in Haiti.

A.

Right.

And I told Mr. Osorio at the time that OPIC's money

wasn't going for a Royal Caribbean school.

Q.

Well, because they couldn't build houses because of the

10

problem, they took on some projects to help people and build a

11

school for the kids in Haiti.

12

A.

Maybe.

13

Q.

Maybe.

14

have spent down there?

15

A.

We wanted to have homes built.

16

Q.

But you couldn't because of the land and the eminent domain

17

issue, right?

18

A.

Right.

19

Q.

So, they built a school.

20

Right?

But that's not the OPIC money that you cared to

MR. SHARPSTEIN:

21

BY MR. SHARPSTEIN:

22

Q.

23

down there, right?

24

A.

Um-hum.

25

Q.

With your money.

Let's keep going, Ms. Smith.

These are real pictures of real people that are building

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A.

(No response)

Q.

Right?

A.

And the company's equity.

Q.

And the company's equity.

Let's keep going.

MR. SHARPSTEIN:

Go back one step, one --

BY MR. SHARPSTEIN:

Q.

Labadee, Haiti, do you know where that is?

A.

No, I'm not familiar with it.

10

Q.

And these are not renditions.

11

lifting panels, building a school down there, right?

12

A.

These are people actually

Correct.

13

MR. SHARPSTEIN:

Next.

14

BY MR. SHARPSTEIN:

15

Q.

16

workers that could go there that needed to be building InnoVida

17

and other projects, right?

18

A.

Were they built?

19

Q.

Here we go.

20

A.

Okay.

21

Q.

Look at that.

22

are built.

23

real bungalows for workers to live in to reconstruct Haiti.

24

Right?

25

A.

A rendition, these are bungalows that were built for

You ask and you receive.

There's -- those

InnoVida projects that are being built in Haiti,

I see several, yes.

I see a number of them.

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Q.

Let's keep going.

Renditions.

A World Food program, not the one -- not

the World Vision, the one that you talked about later.

actual program to build in Haiti.

MR. SHARPSTEIN:

BY MR. SHARPSTEIN:

Q.

Next.

Here it is being built.

You get this in September of 2010.

MS. FOSTER-STEERS:

10

But an

Your Honor, may we have an exhibit

number, please?

11

MR. SHARPSTEIN:

Your C(25).

12

MS. FOSTER-STEERS:

13

MR. SHARPSTEIN:

Okay.

Thank you.

Next.

14

A.

There was nothing erected on that site.

15

Q.

Okay.

16

MR. SHARPSTEIN:

17

BY MR. SHARPSTEIN:

18

Q.

Next.

It was being worked on at the time.

19

MR. SHARPSTEIN:

Next.

20

BY MR. SHARPSTEIN:

21

Q.

22

InnoVida.

23

and see what was going on?

24

A.

Yes.

25

Q.

Okay.

These are shelters that were being built down there by


Did you ever have anybody to go down there to look

And they didn't see these shelters in September?


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A.

No, because even though -- the gentleman's name was Mike

McNulty, and he was a colleague of mine in the finance

department, he had other -- he had another project that he was

working on down there.

arrangements for him to meet with the InnoVida representative

on-site.

Q.

after you got these in September, did you send someone to look

at these shelters, the school that were being built?

And he -- and Mr. Toll had made

The -- they had made preliminary --

The question was:

Did you send someone to look at the --

10

A.

You were asking if -- you've asked if we sent anybody, and

11

then if anybody saw them, and my answer was no, and I was

12

explaining why not.

13

Q.

Okay.

14

A.

Should I finish?

15

Q.

No.

16

MR. SHARPSTEIN:

Next.

17

BY MR. SHARPSTEIN:

18

Q.

How about the supermarket?

19

A.

Once again --

20

Q.

You went there and didn't see the supermarket, is that what

21

you're saying?

22

A.

23

colleague, even though they had made previous arrangements.

24

was a no-show.

25

Q.

No.

The InnoVida representative refused to meet with my

So, did he go looking around himself to see that in


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

He

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Port-au-Prince this supermarket was erected so that Haitian

people could go shopping for food after the earthquake?

A.

No.

MR. SHARPSTEIN:

BY MR. SHARPSTEIN:

Q.

dealer down there.

A.

Next.

Offices that were being built.


No?

I believe this is a car

Nobody went to see that?

No.
MR. SHARPSTEIN:

9
10

MS. SMITH:

Next?

That is it.

11

BY MR. SHARPSTEIN:

12

Q.

I mean these are sent to you in September of 2010.

13

A.

In September of 2010, we were already so suspicious of the

14

activities of the company that I did not put any stock into

15

these photos.

16

in Haiti, and I wasn't about to go down there myself to find

17

out.

18

Q.

19

was going on at the management at InnoVida, did you?

20

A.

What do you mean in particular?

21

Q.

How the operation worked day-to-day.

22

specific, okay?

23

I had no way of knowing that these were actually

You know -- did you know what was -- you had no idea what

Let me be more

Do you know who ran and controlled the bank accounts

24

at InnoVida?

25

A.

I do not know for certain.

I assume that that would be the

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chief financial officer.

Q.

But it wasn't.

A.

I did not.

Q.

Did you know that Mr. Osorio controlled all the bank

accounts himself, that he was the only signator on the accounts

with his wife and Elba Gamboa?

A.

I do not know that.

Q.

Did you know that he kept the bank statements himself and

had never gave (sic) them to Mr. Toll to reconcile at a time

Did you know that?

10

when you were talking about asking for these?

11

A.

12

them to me.

13

Q.

Well, actually --

14

A.

Three times, actually.

15

Q.

Actually, the ones you talked about at the end, Exhibit 37

16

and 40, that had no cover page, no e-mail?

17

A.

That were sent to me in hard copy?

18

Q.

Yeah, these.

Well, Mr. Toll had them, because he was the one that sent

That's 37.

19

THE COURT:

You got to switch it over.

20

MR. SHARPSTEIN:

21

MS. SMITH:

22

MR. SHARPSTEIN:

Sorry.

I apologize, Ms. Smith.

I can pull up 37.


I should have gone -- I'm a real

23

techno -- I would use the word "geek," but that would mean I'm

24

good, and I'm not.

25

MS. SMITH:

I can do 37.

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(Discussion had off the record among counsel)

MR. SHARPSTEIN:

keep it up.

We're doing good here.

21st century.

BY MR. SHARPSTEIN:

Q.

10

All right.

Thank you, Ms. Smith, for bringing me into the

You know, actually, you can -- we can

Here we go.

So, this is Exhibit 37.


MR. SHARPSTEIN:

These were the bank accounts --

Let's go a page or two more.

BY MR. SHARPSTEIN:
Q.

-- that you talked about today.

11

MR. SHARPSTEIN:

12

MS. SMITH:

13

BY MR. SHARPSTEIN:

14

Q.

Tell me when.

That you talked about with Ms. -MR. SHARPSTEIN:

15

Let's go a couple of more pages.

Up a little bit there.

16

BY MR. SHARPSTEIN:

17

Q.

You talked about to Ms. Foster-Steers about.

18

A.

Um-hum.

19

Q.

Now, every time Mr. Toll sent you a bank account or a

20

financial statement, he sent it from his e-mail, right, like

21

C(11) -- I'm just gonna hold it up -- Craig Toll to you:

22

"Dear Lynn, as we discussed, the unaudited financial

23

statements, bank records."

24
25

They came from his e-mail to you, right?


A.

I don't know for certain every time.


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Q.

These at the end, when you were getting suspicious, how did

37 come to you?

e-mail.

A.

Mr. Toll indicating --

Q.

Where's the e-mail?

A.

There was an e-mail saying, Lynn, I'm sorry that the first

set got lost in the mail.

mail.

Because there's no cover page, there's no

How did they get to you?

These were sent hard copy, and I received an e-mail from

I am now sending them overnight

Here's the tracking number.

10

Q.

And do you know who prepared those?

11

A.

The bank statements?

12

Q.

Yeah.

13

A.

I --

14

Q.

These came blank like this.

15

A.

Right.

16

Q.

That you said you were suspicious of.

17

A.

Right.

18

Q.

Do you know who prepared this set of documents?

19

A.

I do not.

20

to the bank statements, and he was able to answer every

21

question with regard to specific deposits and withdraws.

22

Q.

Well, those acknowledgments that we talked about?

23

A.

Um-hum.

24

Q.

The acknowledgments that you -- and you saw the name Elba

25

Gamboa.

But I asked Mr. Toll specific questions related

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A.

Um-hum.

Q.

Who is Elba Gamboa?

A.

I understood her to be the office manager.

Q.

Office manager.

A.

When we walked in to meet at Factories, I believe she was

the person sitting at the desk right in front.

Q.

Well, these acknowledgments show up signed by her.

A.

Yes, they do.

Q.

As like managing director or something like that.

Do you

10

know who she was?

11

A.

12

why I didn't put much stock in the acknowledgments.

13

Q.

14

Mr. Osorio alone?

15

A.

I don't recall if I knew she was a signatory at the time.

16

Q.

Do you know whether she's the one that put these together,

17

37 and 42?

18

A.

What are 37 and 42?

19

Q.

Thirty-seven is in front of you.

20

A.

Okay.

21

Q.

And 42 was the one you said you got a little bit later?

22

A.

Okay.

23

assumption was that they came through Mr. Toll, because, as I

24

said, he was acknowledging that they were sent, acknowledging

25

that -- and answering and responding to the questions that I

As I said, I thought she was the office manager, which is

Did you know she was a signator on the accounts, she and

I'm sorry.

I don't know if she put them together.

My

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was asking about the statements.

Q.

on in the back room there at the management by Mr. Osorio, did

you?

A.

what's going on."

Q.

No, strike that.

A.

I have no idea, you know, how to even answer that question.

Q.

You're probably right.

10

A.

Okay.

11

Q.

But, you know, you -- the -- you were getting suspicious,

12

because you saw that e-mail about the contract with Royal

13

Caribbean, right?

14

A.

Yes.

15

Q.

The one that was from John Weis, the vice president of

16

Royal Caribbean, to Amarilis Moran, "Congratulations."

17

A.

Um-hum.

18

Q.

Do you know who created that?

19

A.

No, I do not.

20

Q.

Do you know whether Mr. Osorio did?

21

A.

I don't.

22

Q.

And the other one that you were suspicious of, the World

23

Vision.

24

A.

Yes.

25

Q.

And that came -- it was odd to you, because there was an

When was it that you -- but you had no idea what was going

I don't know what you mean by "you had no idea in the back

So, I take it back.

Thank you.

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e-mail to -- from Claudio Osorio to Craig Toll -- take a look

at this -- and an e-mail from Linda Brito.

A.

instead of forwarded.

Q.

Do you know how Mr. Toll got that internally?

A.

He must have gotten it by e-mail if it was forwarded to

him.

Q.

And do you know who created that?

A.

I do not.

10

Q.

The issues that came up in regard to the lawsuits,

11

eventually you said that you wrote a letter defaulting the

12

loans because of the failure of InnoVida to tell you about the

13

lawsuits.

14

A.

Um-hum.

15

Q.

But that was in January of 2011, correct?

16

A.

I believe we wrote the letter -- the letter was issued in

17

February.

18

Q.

February.

19

A.

If I'm not mistaken.

20

Q.

But you knew about those lawsuits back in October --

21

A.

We did.

22

Q.

-- of 2010.

23

with Mr. Toll and --

24

A.

Um-hum.

25

Q.

-- and Mr. Osorio.

Right.

And then it was scanned and sent to me by pdf,

And you had discussions about the lawsuits

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A.

Yes, because, just because we have conversations with them

about it, it does not constitute a waiver of those defaults.

Q.

that was the reason for default.

about them?

A.

it.

as I said, their original non-notification of us was a default.

And so, even though time had progressed, the default remained,

Whoa, whoa, whoa.

No.

You said you had no notice of it and


But they were talking to you

They -- we were in discussions once we found out about

OPIC found out independently and had conversations.

And

10

even though we were talking about it.

11

Q.

12

them back in September --

13

A.

October.

14

Q.

-- and October of 2010.

15

A.

Didn't take away the fact that they never told us about the

16

litigation.

17

Q.

When were those lawsuits filed?

18

A.

I'm not exactly certain.

19

Q.

So, they missed by a week or two?

20

A.

No.

21

Q.

You had notice of them -- you knew what they were -- and as

22

a matter of fact, then you had contact with one of the

23

individuals, an investor, who actually filed the lawsuit,

24

didn't you?

25

A.

But you were told about them, and they talked to you about

It could have been September.

I did not --

Who was that?


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
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Q.

Mr. Korge?

A.

I had no contact with Mr. Korge.

Q.

You didn't have any contact with him or his lawyers?

A.

I did not.

I did not.

MR. SHARPSTEIN:

Excuse me, your Honor.

Apologize.

BY MR. SHARPSTEIN:

Q.

that you looked at.

intercompany transactions, because it was the company that was

You talked about the intercompany transfers, the invoices


These were intercompany transfers,

10

building -- first producing the panels to build the material

11

and then to ship it and build the actual construction.

12

that was the intercompany transfers.

13

A.

I don't --

14

Q.

There was no invoice from any other company to be had, was

15

there?

16

A.

17

invoices, there are individual -- individual companies involved

18

on those invoices and on those acknowledgments that were not

19

the project company, Innorez, or in an InnoVida Holdings Haiti

20

account.

21

Q.

22

buy the materials, to build the projects that they were

23

actually working on in Haiti, isn't that right?

24

A.

No, that's not correct.

25

Q.

When you looked at the statements that they were provided

I don't believe that's correct.

And

I think if you pull up the

But the money went to other companies within InnoVida to

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to you, they spent four or $5 million in Haiti building these

projects, isn't that right?

A.

No, that's not correct.

Q.

Excuse me for a second.

I have no evidence of that.

(Discussion had off the record among counsel)

MR. SHARPSTEIN:

(Discussion had off the record between counsel)

MR. SHARPSTEIN:

(Discussion had off the record among counsel)

10

MR. SHARPSTEIN:

11

THE COURT:

Excuse me, your Honor.

I apologize.

Excuse me one second.

I don't have any further questions.

Redirect?
REDIRECT EXAMINATION

12
13

BY MS. FOSTER-STEERS:

14

Q.

15

asked of you related to this particular document, which comes

16

from Exhibit C(3), which is an income statement.

17

remember those questions?

18

A.

19

project company, I believe.

20

Q.

21

figure here, where it says "gross profit," and then there is a

22

figure of $4,232,000.

23

question?

24

A.

Yes, I do.

25

Q.

Okay.

Ms. Tabernacki, one of the questions that Mr. Sharpstein

Yes.

Okay.

Do you

It's related to the financial projections for the

And, in fact, Mr. Sharpstein asked you about this

Do you see that?

Do you remember that

Can you tell the member -- or tell the members of


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the jury, or explain to them, what does this mean?

A.

basis, I would -- in the first year, we often see start-up

companies that are beginning on the ground with net losses.

Yeah, with net losses, gross losses.

get started, and there's a lot that goes into making that

happen.

if you look in the second year, they're selling 7,000 homes --

they will begin to make money.

To me, when I would -- if I would look at this on a normal

10

Because they're trying to

And then, obviously, as they begin to sell more -- so,

However, as this was my expectation with the project,

11

I would not expect on the InnoVida Holdings, the parent

12

company, that had operations to have a net loss.

13

Q.

14

referring to numbers related to the project company, the

15

company that is going to be instituted as a result of -- or,

16

rather, the Haiti project?

17

A.

Yes, that's correct.

18

Q.

So, this figure, which looks like a loss, is that something

19

that you would have expected of the project company?

20

A.

21

first year.

22

Q.

23

aware of any losses by -- or let me ask you this question.

24

Were you aware of any losses being suffered by the parent

25

company at the time that OPIC was processing the loan for

Okay.

Yes.

Okay.

So, according to this document, is this document

That was my understanding.

It was very possible you would have a loss in the

And Mr. Sharpstein asked you whether or not you were

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InnoVida?

A.

I was not aware of that, no.

Q.

And had you been aware of losses, Ms. Tabernacki, what

would you have done?

A.

because oftentimes there are people in a growth stage, or

borrowers that are in a growth stage.

particular case, because there was an entity that had been

established for some period of time, three years, if they were

It would have -- I cannot say that we would make the loan,

However, in this

10

not exhibiting success, then we would have had less of an

11

interest in supporting them, because then it would evidence --

12

or wouldn't provide the necessary evidence for us to feel

13

comfortable that they had the capability to get the project

14

done.

15

Q.

16

that April 23, 2010, e-mail from Craig Toll to you.

17

that?

18

A.

Yes, I do.

19

Q.

Then he asked you about the term on the next page, which is

20

Bate Number 003055 of Exhibit C(11), about the term "unaudited

21

pro forma."

22

A.

Yes, I do.

23

Q.

Ms. Tabernacki, what does "pro forma" mean?

24

A.

Pro forma, once again, it means "for form," which is

25

usually applied in the context of financial projections, what

Mr. Sharpstein also asked you about Exhibit C(11), which is


Do you see

Do you remember those questions?

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you expect to happen in the future.

which has happened in the past.

Q.

statement is prepared in a form pro forma, should disclosures

be made?

Okay.

Objection to the form.

No

foundation.

8
9

Do you know whether or not when a financial

MR. SHARPSTEIN:

It is not relevant to that

THE COURT:
A.

I'm gonna allow it.

I have not in my experience seen a historical financial

10

statement that would be labeled with the term "pro forma."

11

However, if there were extraordinary items that required the

12

company to report or somehow adjust their financial statements

13

for that period of time because of some abnormality, then there

14

would certainly be a line item at the bottom reflecting that

15

and a disclosure in the financial statements as to what that

16

item was.

17

Q.

18

disclosures as it related to any, to any financial statement

19

provided to you by Craig Toll to OPIC?

20

A.

No.

21

Q.

Mr. Sharpstein asked you, with respect to the same exhibit,

22

C(11) I believe -- we're looking now at Bate Number 003057 --

23

about finished goods.

24

A.

Yes, I do.

25

Q.

Okay.

Okay.

Were you ever given any explanations or any

Do you see that?

And how did you explain that?


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A.

(No response)

Q.

In terms of the finished goods, what was your understanding

of what the "finished goods" were?

A.

"Finished goods" I would understand would be panels.

Q.

All right.

finished goods, right?

A.

That's correct.

Q.

But you also said that you had visited a factory, right?

A.

Yes.

10

Q.

Had you actually seen panels being produced?

11

A.

I had seen panels being produced.

12

the factory, employed, processing, making panels.

13

Q.

14

shipped from the Miami factory to Haiti?

15

A.

Yes, I did.

16

Q.

Was that --

17

A.

I'm sorry.

18

Q.

Was that what was represented to you?

19

A.

Yes, it was.

20

at the time, which I expected was going to be part of that

21

shipment.

22

Q.

23

statement of operations, and we look at what you called or what

24

you referred to as a "bottom line," what are you looking at?

25

A.

Okay.

Okay.

And here you see nothing with respect to

I had seen workers in

And did you expect that panels were going to be

And there was --

And there was inventory in the Miami factory

So, when you look at this particular combined

I'm looking at a company that has experienced growth from


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one year to the next, increased income.

Is that what....

Q.

From -- are you looking at the bottom line literally here?

A.

Oh, I was looking at the comparison between December 31,

2008, and December 31, 2009.

during that period.

Q.

Okay.

A.

Oh, net income.

Q.

At the bottom, the bottom line.

A.

The bottom line, yes.

10

Q.

Okay.

11

in -- from December 31, 2008, to the year ending December 31,

12

2009, from six million to 15 million, right?

13

A.

Yes.

14

Q.

Mr. Sharpstein asked you about projects being built in

15

Haiti, right?

16

A.

Yes.

17

Q.

The specific project being built in Haiti, according to the

18

loan agreement entered into by OPIC and InnoVida, what was

19

that?

20

A.

21

well as a manufacturing facility to manufacture structural

22

insulated panels.

23

Q.

24

said no homes were being built in Haiti, and then

25

Mr. Sharpstein showed you pictures or photographs of what -- of

I am seeing a growth in income

What line item are you looking in particular?

I'm sorry.

And there's an increase from over six million to now

The expectation was that there would be homes built, as

All right.

Now, after the person went down to Haiti and

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buildings, do you know where those buildings were being built?

A.

photographs in Labadee for the school and Port-au-Prince for

the supermarket, or whatever that was, that it didn't impress

me, because, clearly, it was not the volume of homes that we

had anticipated over that period of time.

I don't know.

Only what was represented to me from those

We had disbursed, you know, in the spring, and this

was already the summer, and we were -- we had financed

rapid-build homes, and there weren't any, that -- well, any

10

measurable amount.

11

100.

12

Q.

13

to those photographs in the brochure, that a supermarket had

14

been built, right?

15

A.

Um-hum.

16

Q.

Now, was the building of the supermarket a part of the

17

agreement between InnoVida and OPIC?

18

A.

No, it was not.

19

Q.

Had anybody come to OPIC and asked to amend the terms of

20

the loan agreement?

21

A.

No, they had not.

22

Q.

Had anybody told you or advised you that they were using

23

OPIC's money to build supermarkets?

24

A.

No, they had not.

25

Q.

Mr. Sharpstein asked you about other projects being built.

Okay.

We understood that there were fewer than

Well, Mr. Sharpstein also pointed out, with respect

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Did anyone at any time come to OPIC and ask for any type of

amendment to the loan agreement?

A.

project.

together, and with Cameron Alford, where we went through trying

to nail down where these homes were that the money was being

spent on.

about the use of those funds.

were fewer 100 homes.

No, not with respect to the project, the nature of the


We had a conversation with Mr. Osorio and Mr. Toll

And there were representations being made to us


We had ascertained that there

They brought up the fact that there was

10

this school in Labadee.

11

from the OPIC money.

12

progress update related to the quarterly report, they

13

indicated, oh, OPIC money wasn't used for that.

14

Q.

15

to Mr. Sharpstein's questions that you dealt with Mr. Toll,

16

right?

17

A.

Yes.

18

Q.

Okay.

19

numbers and figures?

20

A.

Never.

21

Q.

Why not?

22

A.

Because Claudio was not involved with the detail at all.

23

Q.

Okay.

24

A.

Mr. Toll.

25

I was receiving, I addressed with Mr. Toll, and he responded

Okay.

At which point, I said, that's not

And I believe that in the update, the

You said in your response -- one of your responses

Did you deal with Claudio Osorio when it came to

And who was?


All of my questions related to the documentation

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TABERNACKI - REDIRECT/FOSTER-STEERS

very reasonably and very quickly to those questions.

unfortunately, most of the time, the questions (sic) were

changing, depending upon what I was asking.

different answers.

Q.

2010, when you're trying to set up a meeting with Claudio

Osorio and Craig Toll, did those meetings ever take place?

A.

Washington on a number of occasions in order to sit down and

10

talk about this information and the inconsistencies and our

11

concern as to where the money had gone.

12

And,

I kept getting

In fact, Ms. Tabernacki, at the end, in October/December of

No, they did not.

We had attempted to have them come to

And, in fact, on one morning, when they were supposed

13

to arrive, we received a phone call instead saying that neither

14

one was coming, because Mr. Osorio had another obligation.

15

can't recall what the nature of that was.

16

At which point, I sent an e-mail saying we needed to

17

talk about numbers.

Mr. Toll, the chief financial officer, can

18

certainly handle that.

19

paraphrasing.

20

Q.

21

meeting where you were going to be talk figures?

22

A.

23

him there, so that he would that he was being be put on the

24

spot, as well.

25

the numbers and what was being reported to us.

He should have been here.

I'm

So, did you need to have Claudio Osorio present at the

I didn't need him there.

It would have been nice to have

But we felt Mr. Toll was the one in control of


And as he

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TABERNACKI - REDIRECT/FOSTER-STEERS

certified to us in the various documentation that it was

accurate, we felt, you know, that he was going to be the one to

answer the detail.

Q.

regarding the bank statements, that you asked specific

questions regarding the bank statements.

response?

A.

Yes, I do.

Q.

Okay.

Okay.

You responded to one of Mr. Sharpstein's questions

Do you remember that

So, would you tell the members of the jury, when you

10

received those first bank statements, I believe it's

11

Exhibit C(37) --

12

A.

Yes.

13

Q.

-- what did you do?

14

A.

That was the bank statement that had the withdraw

15

information chopped off or eliminated from the -- what I had

16

received.

17

related to the deposits, I was asking questions as to who these

18

parties were, why were they contributing money.

19

for instance, Artie Rabin, and others along the way, and he was

20

able to answer all of those questions and provided that to me

21

in an e-mail.

22

Q.

23

difficulties in Haiti being encountered in terms of building

24

houses --

25

A.

And so, from the information I did receive that was

And, you know,

Mr. Sharpstein asked you a question about the problems and

Um-hum.
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Q.

-- any type of buildings in Haiti.

Do you remember those

questions?

A.

Yes, I do.

Q.

Okay.

were considering InnoVida's use of OPIC's monies?

A.

recognize that there are legal and political implications in

the country that we're working in, and that they're often very

difficult.

How did you -- did that have any impact on how you

Well, uhm, yes, because in every project that we do, we

And as clients experience troubles, they come to

10

us, and we discuss it as to how to work it out.

11

to encourage commercial enterprises to work in these countries.

12

The U.S. government has some ability to work with the foreign

13

governments to support a business environment.

14

that even if there were difficulties in Haiti with bringing the

15

panels down or constructing homes, that OPIC could play a role

16

in helping the situation.

17

However, we never heard that.

We're trying

And we felt

We never heard that

18

there was a problem.

19

sorry -- lost my train of thought.

20

homes were being constructed, that they were getting leases on

21

land, that they had found a site --

22
23

We heard that there was -- that --

MR. SHARPSTEIN:
answer.

What we had heard was that

Objection to the -- objection to this

It's hearsay.

24

THE WITNESS:

25

THE COURT:

Sorry.

Next question.

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MS. FOSTER-STEERS:

(Discussion had off the record among counsel)

MS. FOSTER-STEERS:

THE COURT:

Thank you, ma'am.

You may step down.

You're excused.

THE WITNESS:

(Witness excused)

THE COURT:

10
11

I have no further questions, your

Honor.

5
6

Okay.

Great.

The government may call its next witness.

MS. SELMORE:

The United States will call Ryan

Freedman, please.
MR. SHARPSTEIN:

12

Can we just approach sidebar briefly

13

with one of the prosecutors?

14

THE COURT:

15

(At the bench out of the hearing of the jury)

16

MR. SHARPSTEIN:

Okay.

17

whatever.

18

Mr. Smith and Mr. Hobson.

I don't like to stand or complain or

We thought there were other witnesses coming --

19

MS. FOSTER-STEERS:

20

MR. SHARPSTEIN:

I know.

We --

Mr. Smith and Mr. Hobson, who we're

21

ready for.

I don't have my cross ready for Ryan Freedman yet

22

right now.

So -- I haven't read the Jencks and things like

23

that.

24

now.

25

So, I just -- if they do direct, I can't cross right

MS. FOSTER-STEERS:

That's fine.

We intended to call

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Mr. Smith and Mr. Hobson.

over on you.

We're not trying to pull anything

MR. SHARPSTEIN:

MS. FOSTER-STEERS:

THE COURT:

THE COURT:

MR. SHARPSTEIN:

If you had told me that at lunch, I

would have -MS. FOSTER-STEERS:

13

THE COURT:

But we just --

Do you have someone else to put on besides

Freedman now?

15

MS. FOSTER-STEERS:

16

THE COURT:

Okay.

No, your Honor.

Well, he's probably going to have

MS. FOSTER-STEERS:

Well, he'll have to do what he has

to do.

20

THE COURT:

21

(End of sidebar discussion)

22

THE COURT:

23

THE COURT REPORTER:

24
25

It's him.

to spend the night then.

18
19

I mean he

He's not going to be able to do that --

12

17

Probably half an hour.

has to go back tonight, so we're trying to accommodate him.

10

14

But Mr. --

How long is your direct going to be on

MS. FOSTER-STEERS:

11

Okay.

Freedman?

7
8

Sure.

Okay.

Right up here, Mr. Freedman.


Please raise your right hand.

(RYAN FREEDMAN, GOVERNMENT'S WITNESS, WAS SWORN)


THE COURT REPORTER:

Please sit down.

Please get

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close to the microphone, state your full name for the record,

spelling your last name.


THE WITNESS:

3
4

Ryan Freedman, F-R-E-E-D-M-A-N.


DIRECT EXAMINATION

BY MS. SELMORE:

Q.

Good afternoon, Mr. Freedman.

Mr. Freedman, what do you do for a living, sir?

A.

I'm a real estate developer.

Q.

And where do you work primarily?

What state do you work

10

primarily in?

11

A.

New York and Florida.

12

Q.

Do you own any companies?

13

A.

Yes.

14

Q.

What are the companies that you've owned?

15

A.

The specific company entities or --

16

Q.

Yes.

17

A.

The company I work for is Corigin Holdings.

18

manager of CCH Housing.

19

Q.

Are you familiar with a company called Coral Capital?

20

A.

Yes.

21

Q.

Was that one of your companies?

22

A.

It's the company I'm a manager of, as well, yes.

23

Q.

And City Center Realty, is that one of your companies?

24

A.

Yes.

25

Q.

Are you married, sir?

And I'm also a

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A.

Yes.

Q.

Do you have any children?

A.

Yes.

Q.

How many?

A.

Two.

Q.

And how far did you go in school?

A.

I have a bachelor's of business.

Q.

With any specialty?

A.

Real estate and urban land economics.

10

Q.

Now, how long have you been engaged in the business of real

11

estate?

12

A.

My entire career.

13

Q.

And how many years would that be, approximately?

14

A.

Twelve or 13.

15

Q.

Now, Mr. Freedman, have you ever heard of a company called

16

InnoVida?

17

A.

Yes.

18

Q.

And would you explain to the jury how you first heard about

19

InnoVida.

20

A.

A friend of mine introduced me to Claudio Osorio in 2007.

21

Q.

What was your friend's name?

22

A.

Jared Margolis.

23

Q.

And where did you -- where were you introduced to

24

Mr. Osorio?

25

A.

I don't specifically remember the location of the first


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meeting.

Q.

Do you know the city?

A.

Miami.

Q.

And what was the purpose for introducing you to Mr. Osorio

and learning about InnoVida?

A.

thought it was interesting.

thought I might want to potentially invest in the company.

Q.

He who?

10

A.

Jared Margolis, who made the introduction to Claudio.

11

Q.

Did you have conversations with Mr. Osorio about InnoVida?

12

A.

Yes.

13

Q.

And what did Mr. Osorio tell you about InnoVida?

14

A.

He explained to me that they have a composite material to

15

build homes cheaper and better and more efficient than ever,

16

you know, before.

17

Q.

What was this composite made of, did he tell you?

18

A.

It was a mix of resins and a proprietary material that they

19

infused into these panels, uhm, that were stronger, sturdier,

20

had better insulation values than anything that was out on the

21

market currently.

22

Q.

23

boats out of, sir?

24

A.

Yes, that's correct.

25

Q.

Now, did he tell you where he got this proprietary or this

He was -- he wanted me to see what they were doing.

He

He knew I was in real estate and

And that resin material, is it similar to what they make

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product from?

A.

companies.

Q.

time?

A.

No, I did not.

Q.

What did you think of this product?

A.

I thought it was a great product.

Q.

And why was Mr. Osorio telling you about this product and

Uhm, no.

Okay.

I remember they bought it from one of their own

Now, did you know anything about Mr. Osorio at that

10

what he was doing?

Did he want something from you?

11

A.

Yes.

12

Q.

Investors to do what?

13

A.

Invest in, at that time, a regional factory.

14

that was -- the one that was proposed to me and that I

15

ultimately invested in was one in Miami.

16

Q.

And what would that factory do?

17

A.

It would produce panels that would produce homes and

18

structures.

19

Q.

20

factory?

21

A.

22

the factory, and InnoVida would retain ownership of the other

23

half of the factory.

24

Q.

25

or not he had any other factories in any other location?

They were looking for investors.

The first

And if you invested in that factory, who would own that

We -- me and the other investors would own 50 percent of

Now, at that time, did Mr. Osorio indicate to you whether

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A.

Uhm --

Q.

If you recall.

A.

Yeah, I believe that there was an operation up and running

in the UAE, in the Emirates, that later I ended up -- I went

and saw.

Q.

You went to see the factories?

A.

Yes.

Q.

Now, at some point in time, did you proceed and invest in

InnoVida?

10

A.

Yes.

11

Q.

Approximately when?

12

A.

Uhm, it was done in several different tranches.

13

was in March of 2008, I believe.

14

Q.

And how much did you invest in March of 2008?

15

A.

Uhm, roughly a million dollars, I believe.

16

Q.

Now, you said there were several tranches.

17

A.

Yes.

18

Q.

Could you give us a rundown?

19

A.

So, originally, it was an investment into the Miami

20

factory.

21

built in Mississippi.

22

believe it was April of 2008, a larger investment into the

23

parent company of InnoVida Holdings that rolled up the first

24

two investments.

25

Q.

The first

Later, a second investment into one that was to be


And approximately a year later, I

And what was the total sum of all of these investments?


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A.

Uhm, I believe it was just over $5 million.

Q.

Now, you indicated that all of these investments rolled up

into the parent company.

A.

Yes.

Q.

Would that be InnoVida Holdings, LLC?

A.

That's correct.

MS. SELMORE:

THE COURT:

Your Honor, may I approach?

All right.

BY MS. SELMORE:

10

Q.

Mr. Freedman, I've just handed you several documents that

11

have been marked for identification as Government's

12

Exhibit G(2) --

13
14

MR. SHARPSTEIN:

Do you have a copy for us?

We don't

have those.

15

MS. SELMORE:

16

(Government's Exhibits G(2), G(3), G(4), and G(5)

17

G(3), G(4), and G(5).

marked for identification)

18

MR. SHARPSTEIN:

19

MS. SELMORE:

Can we see them before you --

Sure.

20

BY MS. SELMORE:

21

Q.

Do you need to read these some more?

22

A.

I didn't look at them.

23

Q.

I want you to look at them.

24

A.

Oh.

25

Q.

And after you look at them, I'll hand them to


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Mr. Sharpstein.

(Discussion had off the record among counsel)

BY MS. SELMORE:

Q.

Mr. Freedman, do you recognize those documents, sir?

A.

Yes.

Q.

And what are they?

A.

They're all documents that were related to the investment

into Innovida Holdings.


MS. SELMORE:

9
10

Your Honor, at this time, we would offer

Government's Exhibit G(2), G(3), G(4), and G(5).

11

MR. SHARPSTEIN:

No objection.

12

THE COURT:

13

(Government's Exhibits G(2), G(3), G(4), and G(5)

G(2), 3, 4, and 5 will be received.

14

admitted into evidence)

15

BY MS. SELMORE:

16

Q.

17

introduced as Government's Exhibit G(2).

18

document, sir?

19

A.

Yes.

20

Q.

And what is Government's Exhibit G(2)?

21

A.

It's a promissory note on a secured basis between

22

CCH Housing, which is my company, and Innovida Holdings, for

23

$3.75 million.

24

Q.

And what is the date of this note, sir?

25

A.

April 3, 2009.

Mr. Freedman, I'm just showing you what has just been
Do you recognize that

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MS. SELMORE:

And just for the record, we're referring

to Bate Number 000121 through 000131.

BY MS. SELMORE:

Q.

had invested a little over $5 million.

testimony?

A.

Yes.

Q.

This note is for $3,750,000, sir.

A.

Yes.

10

Q.

As of April 3rd of 2009, had you invested over $5 million?

11

A.

No.

12

Q.

Would this be an accurate reflection of the amount of money

13

you invested as of April 3rd?

14

A.

Yes.

15

Q.

Now, you indicated that this loan was a roll-up, is that

16

correct?

17

A.

Yes.

18

Q.

So, your previous investments in the individual factories

19

for money you had given Mr. Osorio for those individual

20

factories were then lumped together into a loan for the holding

21

company.

22

A.

That's correct.

23

Q.

Now, under the terms of this loan -- if you could see

24

that -- what was the interest rate on this note?

25

A.

Now, during your testimony a moment ago, you said that you
Do you recall that

Do you see that?

Eight percent.
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Q.

And was InnoVida required to make interest payments on this

note?

A.

I believe so, yes.

Q.

And do you recall how often or in what interval they were

required to make interest payments?

A.

quarterly.

Q.

the last line?

I don't specifically recall, but I believe it was

I would direct your attention to paragraph B.

Do you see

10

A.

Yes, quarterly.

11

Q.

And do you recall, did InnoVida make quarterly interest

12

payments to you on this note?

13

A.

For a while, yes.

14

Q.

And how much were those quarterly interest payments?

15

A.

I don't recall the exact number.

16

Q.

Now, at some point in time, did you make additional loans

17

to InnoVida?

18

A.

19

additional hundred thousand, as well.

20

Q.

21

InnoVida, were you receiving any financial statements letting

22

you know the condition of the company?

23

A.

Yes.

24

Q.

And from whom did you get those financial statements, sir?

25

A.

They were typically sent from Mr. Toll.

Yes, an additional 1.5 million, and then separately an

Now, during the time that you were making these loans to

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Q.

And who was Mr. Toll?

A.

The CFO of InnoVida.

Q.

And who was -- and do you see Mr. Toll in the courtroom

today?

A.

Yes.

Q.

Do you see him in the courtroom today?

A.

Yes.

Q.

Would you point him out and describe an article of clothing

that he's wearing.

Had you ever met him?

10

A.

Black suit, black and white tie.

11

Q.

Now, based on those financial statements you got from

12

Mr. Toll, did they indicate how much money InnoVida and its

13

subsidiaries had in the bank?

14

A.

Yes.

15

Q.

How much?

16

A.

Over $30 million.

17

MR. SHARPSTEIN:

Objection to the -- it'd be hearsay,

18

and there's been no foundation for time period or anything like

19

that.

20

THE COURT:

Sustain.

21

BY MS. SELMORE:

22

Q.

23

InnoVida $3.75 million through April 3rd of 2009, correct?

24

A.

Yes.

25

Q.

And after that, you loaned InnoVida an additional

Mr. Ryan -- Mr. Freedman, you indicated that you loaned

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$1.5 million, is that correct?

A.

Yes.

Q.

And in what year was that additional $1.5 million loan

made?

A.

I don't recall exactly.

Q.

Now, during the time period in which you were loaning

InnoVida this money, which rolled up into the April 3, 2009,

loan, and continuing on with the 1.5 million additional loan,

during that time period of 2009, did you receive financial

I believe it was 2009 as well.

10

statements from Mr. Toll?

11

A.

Yes.

12

Q.

And based on your review of those financial statements you

13

received from Mr. Toll in 2009, did they indicate how much

14

money InnoVida and its subsidiaries had in the bank?


MR. SHARPSTEIN:

15
16

A.

Hearsay.

Yes.

17

THE COURT:

Overruled.

18

BY MS. SELMORE:

19

Q.

How much was it?

20

A.

Over $30 million.

21

Q.

And during the time period in 2009, when you were loaning

22

InnoVida this money, did you have conversations with Mr. Toll

23

about the financial condition of the company?

24

A.

No.

25

Q.

Did you have conversations with Mr. Osorio about the


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financial condition of the company?

A.

Yes.

Q.

And what did he tell you?

MR. SHARPSTEIN:

THE COURT:

BY MS. SELMORE:

Q.

of the company?

A.

Objection.

Hearsay.

I'll allow under it 801(d)(2)(E).

What did Mr. Osorio tell you about the financial condition

Our conversations were typically more specific to things

10

that were going on at the company and not specifically, you

11

know, dollar amounts or, you know, on financial statements,

12

but, you know, this project or that project is happening, and

13

this is good, or we got a contract for this.

14

my conversations were along the lines of that.

15

MS. SELMORE:

16

THE COURT:

Those -- most of

Your Honor, may I approach?

All right.

17

BY MS. SELMORE:

18

Q.

19

identification as Government's Exhibit G(1).

20

that document, sir?

Mr. Freedman, I'd like to hand you what has been marked for
Do you recognize

(Government's Exhibit G(1) marked for identification)

21
22

A.

Yes.

23

Q.

And what do you recognize that to be?

24

A.

This is a balance sheet of Innovida Holdings on two

25

separate dates.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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FREEDMAN - DIRECT/SELMORE

Q.

Is that one of the balance sheets that you would have

received?

A.

Yes.

Q.

In relation to InnoVida's financial condition.

A.

Yes.
MS. SELMORE:

6
7

Your Honor, at this time, we'd offer

Government's Exhibit G(1).

MR. SHARPSTEIN:

THE COURT:

10

No objection.

G(1) will be received.

(Government's Exhibit G(1) admitted into evidence)

11

BY MS. SELMORE:

12

Q.

Can you see that, Mr. Freedman?

13

A.

Yes.

14

Q.

Mr. Freedman, I am showing you what has just been admitted

15

as Government's Exhibit G(1).

16

to be, sir?

17

A.

18

December 31, 2008, and September 30, 2009.

19

Q.

20

in calendar year December 31, 2008?

21

does that cover?

22

A.

It covers the day of December 31, 2008.

23

Q.

Would it be the entire year or the day?

24

A.

No, a balance sheet is reflective of a certain period of

25

time.

And what do you recognize this

This is the balance sheet of Innovida Holdings,

So, what is your understanding of the information reflected


For what period of time

It's just a day.


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 189 of
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FREEDMAN - DIRECT/SELMORE

Q.

Okay.

I would direct your -- and for this entry,

September 30, 2009, what is your understanding the period that

covers?

A.

It also covers that specific day.

Q.

Now, I would direct your attention -- do you recall who you

got this balance sheet from, sir?

A.

office on -- several different versions of this on a regular

basis.

It's the balance sheet.

This was sent over to either myself or Michael Cohen in my

10

Q.

Do you recall who you got it from?

11

A.

Mr. Toll would send it over to us.

12

Q.

And who is Mr. Cohen?

13

A.

Mr. Cohen was an officer of CCH Housing and helped manage

14

the business of that company and this investment specifically.

15

Q.

Does he have a specific title in your company?

16

A.

Oh, he's a vice president.

17

Q.

Now, I would direct your attention to the term "unaudited

18

pro forma" to the left of that page.

19

A.

Yes, ma'am.

20

Q.

Do you know what that means?

21

A.

No.

22

Q.

Did anyone at InnoVida tell you what that meant?

23

A.

No.

24

Q.

Did Mr. Toll tell you what that meant?

25

A.

No.

Do you see that, sir?

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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FREEDMAN - DIRECT/SELMORE

Q.

Did Mr. Osorio tell you what that meant?

A.

No.

Q.

Now, looking at this document, what was your understanding

as to the cash and cash equivalents that InnoVida Holdings and

its consolidated companies had on hand as of December 31, 2008?

A.

The company was holding $37,044,439 of cash.

Q.

And what was the amount of cash that they had on hand as of

September 30, 2009?

A.

$35,863,360.

10

Q.

And I would direct your attention to the line directly

11

below that.

12

A.

Yes.

13

Q.

What were the accounts receivable reflected on this balance

14

sheet as of December 31, 2008?

15

A.

$3,319,301.

16

Q.

And what was the balance of accounts receivable as of

17

September 30, 2009?

18

A.

$15,394,447.

19

Q.

And I would direct your attention to the document which is

20

Bates stamped INNRF000008, which would be the second document,

21

sir.

22

identified as "year-ended December 31, 2008," what was the cash

23

flow or net income reflected on this statement as of that date?

24

A.

$6,615,640.

25

Q.

And as of September 30, 2009?

Do you see that -- accounts receivable?

And, again, directing your attention to the column

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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FREEDMAN - DIRECT/SELMORE

A.

$9,574,152.

Q.

And, finally, sir, I would direct you to the third page of

this statement, identified as "combined statement of

operation," Bate stamped INNRF000009.

document, sir?

A.

Yes.

Q.

What is that?

A.

Statement of cash flows for Innovida Holdings.

Q.

And at the bottom of that page, what is reflected as to net

Do you see that

10

income for the year-ended December 31, 2008?

11

A.

$6,615,640.

12

Q.

And for the period ended September 30, 2009?

13

A.

$9,574,152.

14

Q.

Based on your receipt of this -- review of this financial

15

statement, what was your view of the financial condition of

16

InnoVida?

17

A.

The company's in very good shape.

18

Q.

Now, when you received these documents from Mr. Toll, did

19

you receive any other disclosures?

20

A.

No.

21

Q.

Did he tell any disclosures or anything of that nature?

22

A.

No.

23

Q.

Now, at some point, Mr. Ryan (sic), were you asked to serve

24

on the InnoVida board of directors?

25

A.

Yes.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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FREEDMAN - DIRECT/SELMORE

Q.

Who asked you?

A.

Uhm, Mr. Osorio, as part of our loan agreement.

Q.

I'm sorry?

A.

Mr. Osorio did, as part of our -- the loan that was made to

the company.

Q.

loan back in April of 2009?

A.

Yes, ma'am.

Q.

And were there board meetings that you attended?

10

A.

Yes.

11

Q.

How many?

12

A.

Three.

13

Q.

Over what period of time, if you recall?

14

A.

April, 2009, September, 2009, and September, 2010.

15

Q.

April, 2009, September, 2009, and --

16

A.

September, 2010.

17

Q.

And do you recall if there were other members of the board,

18

sir?

19

A.

Yes.

20

Q.

Who were they?

21

A.

I don't remember all their names.

22

Q.

Well, tell us as many as you can remember.

23

A.

Oh, okay.

24

uhm....

25

Q.

And the loan you're referring to, is that consolidation

Bernie Carballo, Harvey Waksal, Jeb Bush,

Have you ever heard the name Chris Korge?


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 193 of
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FREEDMAN - DIRECT/SELMORE

A.

Yes, Chris Korge.

I'm blanking on the rest of the names.

Q.

And as part of your attendance at those board meetings, did

you receive reports on the financial condition of InnoVida and

its subsidiaries?

A.

Yes.

Q.

From whom?

A.

They were part of the board of directors package that would

be given out at each meeting.

Q.

Did anybody talk about those financial statements at the

10

board meeting?

11

A.

12

quick review of the financials and -- that were in the package.

13

Q.

14

financial condition on that one occasion?

15

A.

16

what you just exhibited and pointed out some of the numbers.

17

But --

18

Q.

Did he hand out any disclosures with those documents?

19

A.

No.

Uhm, typ -- I recall one time Mr. Toll did, you know, a

And do you recall what Mr. Toll told you about the

He simply went through a very similar looking document to

20

MS. SELMORE:

21

THE COURT:

Your Honor, may I approach?

Okay.

22

BY MS. SELMORE:

23

Q.

24

identification as Government's Exhibit G(7), and I'd ask you to

25

review that document, sir.

Mr. Freedman, I'm handing you what has been marked for

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 194 of
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FREEDMAN - DIRECT/SELMORE

(Government's Exhibit G(7) marked for identification)

(Pause)

BY MS. SELMORE:

Q.

Do you recognize it?

A.

Yes.

Q.

And what do you recognize it to be?

A.

That is the package given out at the board of directors

meeting in September, 2010.


MS. SELMORE:

9
10

Your Honor, at this time, we'd offer

Government's Exhibit G(7).

11

MR. SHARPSTEIN:

No objection.

12

THE COURT:

13

(Government's Exhibit G(7) admitted into evidence)

G(7) will be received.

14

BY MS. SELMORE:

15

Q.

16

introduced as G(7).

17

A.

Yes.

18

Q.

And it's for September 6, 2010.

19

A.

Yes.

20

Q.

Now, on the third page -- I'm sorry -- on the second page

21

of this document is an agenda.

22

A.

Yes, ma'am.

23

Q.

And at the bottom, there's a -- under paragraph 5, it says

24

"financial and governance topics."

25

A.

Now, Mr. Freedman, this is the document that's just been


Is this your board meeting packet, sir?

Do you see that, sir?

Do you see that?

Yes.
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

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FREEDMAN - DIRECT/SELMORE

Q.

And below that is "financial update."

A.

Yes.

Q.

And who do you recall providing that financial update?

A.

Mr. Toll.

Q.

And above that is a "management presentation of

operations."

A.

Yes.

Q.

And it talks about "product initiatives."

what that was about, sir?

Do you see that, sir?

Do you recall

10

A.

No.

11

Q.

And on the next page is a list of the board of directors.

12

Would you review that, sir?

13

A.

Yes.

14

Q.

Would that set forth the then-membership of the board of

15

directors for InnoVida?

16

A.

17

really on the board.

18

Q.

Mr. Perez?

19

A.

Yes.

20

Q.

But Claudio Osorio was on the board?

21

A.

Yes.

22

Q.

I apologize.

23

A.

Yes.

24

Q.

Mrs. Osorio?

25

A.

Yes.

Except for Mr. George Perez.

I don't believe he was ever

Mr. Moukaddem was on the board?

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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FREEDMAN - DIRECT/SELMORE

Q.

Kathuria?

A.

I never met that person.

Q.

Okay.

A.

No.

Q.

How about Mr. Jeb Bush?

A.

Yes.

Q.

Was Mr. Waksal there?

A.

Yes.

Q.

Mr. Carballo?

10

A.

Yes.

11

Q.

Mr. Seikaly?

12

A.

Yes.

13

Q.

Duany?

14

A.

Yes.

15

Q.

What about General Wesley Clark?

16

A.

He was not present for any -- for any of those meetings.

17

Q.

But other than Mr. Perez, Kathuria, and General Clark, you

18

believe the remaining people were there?

19

A.

20

recall if he was at this specific date or not.

21

Q.

22

document entitled "capitalization table," is that correct?

23

you see that, sir?

24

A.

Yes.

25

Q.

And what does this reflect?

Yeah.

You don't remember that person being there?

Mr. Moukaddem was at one or two of them.

I don't

Now, on the page Bates stamped INNRF000055, there is a

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Do

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FREEDMAN - DIRECT/SELMORE

A.

This reflects the ownership of InnoVida Holdings.

Q.

People who own shares in the company?

A.

That's correct.

Q.

And on the next page, sir -- let me take it out -- what is

that document, sir?

A.

December 31, 2009, and March 31, 2010.

Q.

to the financial condition of the company?

Those are the balance sheets for InnoVida Holdings,

And would this have been part of Mr. Toll's presentation as

10

A.

Yes.

11

Q.

And as of December 31, 2009, what is reflected as the cash

12

and cash equivalents of InnoVida and its companies?

13

A.

$39,135,579.

14

Q.

And as of December 31, 2010?

15

A.

$39,103,693.

16

Q.

And, again, above that document, it says "unaudited

17

pro forma."

18

A.

Yes.

19

Q.

Do you know what that means, or did you know what that

20

meant?

21

A.

No.

22

Q.

Did anybody explain it to you at that meeting?

23

A.

No.

24

Q.

Below that is an accounts receivables.

25

line, sir?

Do you see that

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 198 of
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FREEDMAN - DIRECT/SELMORE

A.

Yes.

Q.

And what were the accounts receivable for InnoVida and its

companies as of December 31, 2009?

A.

$16,820,033.

Q.

And what was the accounts receivable for the period ending

March 31, 2010?

A.

$23,318,653.

Q.

Now, were those figures significant to you, Mr. Freedman?

A.

Very significant figures.

10

Q.

Why?

11

A.

It shows that the company is in a very good place

12

financially.

13

Q.

And what did that mean for your investment?

14

A.

Initially, it was a large part of the investment decision

15

being made.

16

was very sound and had operations.

17

We thought we were investing into a company that

So, it was -- we put a lot of weight on this.

18

Q.

I'm sorry?

19

A.

We put a lot of weight on this.

20

Q.

And on the next page, do you see that, sir?

21

A.

Yes.

22

Q.

What is this?

23

A.

It is the statement of operations, consolidated, InnoVida

24

Holdings, year-ended December 31, 2009, quarter-ended,

25

March 31, 2010.


FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 199 of
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FREEDMAN - DIRECT/SELMORE

Q.

And what were the operations balance as of December 31,

2009?

A.

$40,133,811.

Q.

And for the quarter ending March 31, 2010?

A.

Seventeen thousand -- 17,200,000.

Q.

And if you go below that, where it says "cost of goods

sold," it says "factories."

factories sold in December 31, 2009?

A.

$18,347,802.

10

Q.

And for March 31, 2010?

11

A.

$12,172,727.

12

Q.

And below that it says "finished goods."

13

A.

Yes.

14

Q.

What was the amount for that line item for December 31,

15

2009?

16

A.

Zero.

17

Q.

And for March 31, 2010?

18

A.

$448,731.

19

Q.

And, finally, what was the net income for the period ending

20

March 31, 2009?

21

A.

$12,515,115.

22

Q.

And for March 31, 2010?

23

A.

$1,762,345.

24

Q.

Is that positive or negative?

25

A.

Positive.

How much were the cost of the

Do you see that?

I'm sorry.

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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FREEDMAN - DIRECT/SELMORE

Q.

And, finally, do you recognize this document, sir?

A.

Yes.

Q.

What is that?

A.

This is the InnoVida consolidated statement of cash flows.

Q.

And what is reflected for the net income for the period

December 31, 2009, again?

A.

$12,515,115.

Q.

And for March 31, 2010?

A.

$1,762,345.

10

Q.

And at the bottom, the cash and cash equivalents for those

11

two periods of time.

12

A.

$39,135,579.

13

Q.

Based on your review of these financial statements, as well

14

as Mr. Toll's presentation, what was your understanding of the

15

financial condition of InnoVida as of these period -- this time

16

periods (sic)?

17

A.

The company's in a very good financial condition.

18

Q.

Did Mr. Toll indicate to you or the other board members

19

that that was not the case at that meeting?

20

A.

No.

21

Q.

Now, at some point in time during this final meeting,

22

September, 2010, did you learn that some lawsuits -- or a

23

lawsuit had been filed against InnoVida?

24

A.

25

specifically a lawsuit, but, yes.

Yes.

I learned there was an issue.

I don't know if it was

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

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FREEDMAN - DIRECT/SELMORE

Q.

What was the issue that you learned?

A.

There was a Turkish gentleman staking a claim on part of

the ownership of the company.

Q.

Do you recall the person's name?

A.

No.

Q.

Now, was Mr. Korge at the September 16, 2010, meeting?

A.

Mr. Korge was outside the meeting, but would not be let in

the meeting.

Q.

And who wouldn't let him in the meeting?

10

A.

Mr. Osorio.

11

Q.

Now, after that meeting concluded, were there any

12

additional meetings of the InnoVida board of directors?

13

A.

Not that I'm aware of.

14

Q.

Why not?

15

A.

I don't know.

16

Q.

Now, going back to the money that you loaned --

17

A.

Yes.

18

Q.

-- InnoVida, did you receive any repayment of the five-plus

19

million dollars that you invested in the company?

20

A.

21

repayment.

22

Q.

Over what period of time?

23

A.

Uhm, the $1.5 million note made after the $3.75 million

24

note was repaid in whole, just after its maturity date.

25

the monies above that were interest payments that were made

Yes.

We received approximately 1.6, $1.7 million in

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

And

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 202 of
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FREEDMAN - DIRECT/SELMORE

from the, you know, 2009 to 2010 period.

Q.

Do you recall when the $1.5 million loan was repaid?

A.

No, not specifically the date.

MS. SELMORE:

THE COURT:

Your Honor, may I have just a moment?

All right.

BY MS. SELMORE:

Q.

late?

A.

Yes.

10

Q.

When?

11

A.

On occasions near the end of the, you know, the maturity, I

12

believe that the $1.5 million principal payment was late.

13

don't recall how late or anything like that.

14

Q.

Would Mr. Cohen be able to explain how late it was?

15

A.

Yes.

16

of that.

The payments you just mentioned, were any of them ever

He was much more involved in the day-to-day details

17

MS. SELMORE:

18

THE COURT:

19

No further questions, your Honor.

Mr. Sharpstein, what do you want to do at

this point?

20

MR. SHARPSTEIN:

21

THE COURT:

22

MR. SHARPSTEIN:

23
24
25

I'm sorry?

What do you want to do at this point?


We need to review the Jencks material

and the exhibits we haven't seen, your Honor.


THE COURT:

All right, members of the jury, we're

going to go ahead and recess for the evening.

Remember my

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 203 of
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203

admonition not to discuss the case or allow it to be discussed

in your presence.

at nine o'clock.

4
5

I'm going to ask you to come back tomorrow

So, have a nice evening.

We'll see you back tomorrow

at nine.

COURTROOM SECURITY OFFICER:

(The jury exited the courtroom)

THE COURT:

Please rise for the jury.

Mr. Freedman, I apologize to you for not

finishing your testimony today.

Defense counsel didn't think

10

you were going to testify, so they weren't ready for the

11

cross-examination.

12

this evening anyway, but I apologize for not being able to try.

13

During the break in your testimony, you're not allowed

14

I don't know that we would have finished

to discuss your testimony with anyone.

15

Do you understand?

16

THE WITNESS:

17

THE COURT:

18

Yes.

And we'll see you back tomorrow at

nine o'clock.

19

THE WITNESS:

20

THE COURT:

Thank you.

And if there's nothing else to come before

21

the Court, we'll be in recess until nine o'clock tomorrow.

22

And, again, we're going until about 12:30 or one tomorrow.

23

(The Judge exited the courtroom)

24

(Proceedings concluded at 4:39 p.m.)

25

FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER


(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 204 of
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INDEX OF WITNESSES

GOVERNMENT'S WITNESS

Lynn Tabernacki
Direct by Ms. Foster-Steers (Continued)
Cross by Mr. Sharpstein
Redirect by Ms. Foster-Steers

4
53, 103
163

Ryan Freedman
Direct by Ms. Selmore

176

PAGE

5
6
7

8
9
10
11

INDEX OF EXHIBITS
DEFENDANT'S EXHIBITS:

MARKED

RECEIVED

80
103
111
143

81

1
2A through 2G
3
4

143

12
13

14

GOVERNMENT'S EXHIBITS:

15
16

G(2), G(3), G(4), and G(5)


G(1)
G(7)

17

MARKED

RECEIVED

181
187
194

182
188
194

18
19

C E R T I F I C A T E

20

I certify that the foregoing is a correct transcript from

21

the record of proceedings in the above-entitled matter.

22
23
24

/S/Francine C. Salopek
Francine C. Salopek, RMR-CRR
Official Court Reporter

9-18-13
Date

25
FRANCINE C. SALOPEK, OFFICIAL COURT REPORTER
(954)769-5657

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 205 of205
222

$
$1 [2] 35/17 57/17
$1 million [2] 35/17 57/17
$1,000,500 [1] 46/3
$1,000,689,000,993 [1] 19/5
$1,000,929 [2] 28/1 47/5
$1,500,000 [1] 22/12
$1,689,993 [5] 16/4 26/1 27/25 46/13
46/15
$1,762,345 [3] 8/5 199/23 200/9
$1,929,804 [3] 16/10 28/1 47/5
$1.5 [5] 186/1 186/3 201/23 202/2
202/12
$1.5 million [5] 186/1 186/3 201/23
202/2 202/12
$1.7 [1] 201/20
$1.7 million [1] 201/20
$10,000 [1] 69/14
$100,000 [1] 26/23
$12 [1] 73/14
$12 million [1] 73/14
$12,172,727 [1] 199/11
$12,515,115 [2] 199/21 200/7
$15,394,447 [1] 190/18
$16,820,033 [1] 198/4
$17 [2] 34/20 34/21
$18,347,802 [1] 199/9
$2 [2] 21/18 35/20
$2 million [2] 21/18 35/20
$2,080,000 [10] 15/8 21/4 21/10 22/17
23/1 23/25 24/9 24/20 27/19 37/12
$2,100,000 [2] 21/19 21/20
$2.3 [1] 36/20
$2.3 million [1] 36/20
$2.5 [3] 38/18 38/20 38/23
$2.5 million [3] 38/18 38/20 38/23
$20 [1] 21/22
$20 million [1] 21/22
$20,000 [3] 21/23 58/3 122/4
$201,900 [1] 46/1
$215 [2] 7/14 10/18
$23,318,653 [1] 198/7
$236 [1] 14/7
$236 million [1] 14/7
$250 [1] 57/17
$250,000 [2] 23/21 37/10
$3,319,301 [1] 190/15
$3,750,000 [1] 183/8
$3.5 [1] 28/6
$3.5 million [1] 28/6
$3.75 [3] 182/23 185/23 201/23
$3.75 million [3] 182/23 185/23 201/23
$30 [4] 133/6 133/9 185/16 186/20
$30 million [4] 133/6 133/9 185/16
186/20
$34,803,214 [1] 47/23
$35,863,360 [2] 130/23 190/9
$350,000 [1] 24/6
$37,044,439 [1] 190/6
$39,103,693 [2] 48/3 197/15
$39,135,579 [2] 197/13 200/12
$4 [1] 14/12
$4,232,000 [2] 91/7 163/22
$40,133,811 [1] 199/3
$400 [1] 57/18
$448,731 [1] 199/18
$5 [5] 5/14 163/1 181/1 183/5 183/10
$5 million [5] 5/14 163/1 181/1 183/5

183/10
$5,522,000 [1] 92/1
$5,792,000 [1] 124/8
$500,000 [3] 38/15 46/23 50/4
$6 [5] 17/11 17/11 17/11 17/12 17/12
$6,615,640 [2] 190/24 191/11
$702,063.42 [1] 38/1
$8.1 [1] 14/14
$8.1 million [1] 14/14
$9,574,152 [2] 191/1 191/13

003266 [1] 47/1


003392 [1] 51/19
003394 [1] 52/10
01 [1] 34/17
010 [1] 19/4
012 [1] 20/15
0324 [1] 17/3
058 [1] 84/22

'

1,500,000 [1] 21/14


1,689,000 [1] 46/19
1,929,804 [2] 17/4 17/18
1-01 [1] 34/17
1-1-10 [1] 45/7
1-1-2010 [1] 34/11
1-12 [1] 34/21
1-29-10 [1] 45/8
1-29-2010 [1] 34/11
1-30-2010 [1] 34/23
1.5 million [3] 21/11 184/18 186/8
1.6 [1] 201/20
10 [2] 45/7 45/8
100 [2] 169/11 170/9
103 [2] 204/4 204/10
10:10 [1] 42/12
10:24 [1] 42/12
11 [7] 38/15 39/9 49/5 156/21 165/15
165/20 166/22
111 [1] 204/11
11:54 a.m [1] 101/18
11th [3] 38/21 38/24 41/9
12 [4] 10/12 10/17 10/18 34/21
12-20901-CR-WPD [1] 1/4
12:30 [2] 43/19 203/22
13 [3] 23/21 177/14 204/23
13th [5] 24/3 46/6 95/22 113/21 113/24
14-and-a-half [1] 56/10
143 [2] 204/11 204/11
14th [2] 140/9 143/15
15 [3] 58/14 76/14 140/7
15 million [1] 168/12
15 minutes [6] 42/3 42/8 42/11 147/4
147/9 147/12
15 pages [1] 79/10
15 years [1] 56/10
15-minute [2] 41/25 147/2
16 [2] 46/13 201/6
163 [1] 204/4
16th [2] 19/4 143/15
17 [1] 79/17
17,200,000 [1] 199/5
176 [1] 204/6
18 [1] 39/25
181 [1] 204/15
182 [1] 204/15
187 [1] 204/15
188 [1] 204/15
19 [1] 81/13
194 [2] 204/16 204/16
19th [1] 83/3
1:15 [3] 3/9 43/15 101/15
1:45 [5] 3/10 43/17 101/5 101/12
101/15
1:50 [1] 102/1
1A [2] 81/25 82/7

'09 [1] 68/21


'4270 [2] 22/5 22/15
'70s [2] 56/22 57/3
'72 [2] 56/22 56/23
'8744 [10] 34/8 36/17 37/24 38/25
40/14 41/9 45/4 46/16 46/17 47/4
'9791 [1] 23/17

-012 [1] 20/15

/
/S/Francine [1] 204/23

0
000121 [1] 183/2
000131 [1] 183/2
001 [2] 15/10 17/4
001362 [2] 39/25 41/4
001568 [1] 49/9
001780 [1] 5/3
001781J [1] 5/18
001784 [1] 6/25
001786 [2] 7/18 48/2
001788 [1] 7/21
001806 [1] 8/19
001807 [1] 10/23
001808 [1] 11/3
0022 [1] 16/3
002278 [1] 14/21
002280 [1] 13/24
002281 [1] 47/21
002283 [1] 14/15
002285 [2] 16/19 20/6
002286 [1] 18/25
002289 [1] 16/9
003039 [1] 24/13
003045 [1] 26/8
003046 [1] 28/4
003050 [1] 46/12
003052 [1] 21/25
003053 [1] 23/15
003055 [1] 165/20
003057 [1] 166/22
003116 [1] 12/11
003223 [1] 37/23
003225 [1] 34/7
003228 [1] 35/3
003231 [1] 36/16
003235 [1] 38/3
003237 [2] 38/13 41/8
003250 [1] 44/15
003251 [1] 45/3
003258 [1] 45/12
003260 [1] 45/20
003262 [1] 46/9
003265 [1] 46/21

2
2,080,000 [3] 21/15 24/17 27/1

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 206 of206
222

2
2,500,000 [1] 39/8
2-27-2010 [2] 34/25 35/8
20 [4] 40/1 40/2 40/4 41/5
20 million [1] 131/23
20 years [1] 125/23
2000 [1] 97/16
2006 [1] 70/20
2007 [1] 177/20
2008 [15] 133/19 133/21 136/6 168/4
168/11 180/13 180/14 180/22 188/18
188/20 188/22 190/5 190/14 190/22
191/10
2009 [46]
2010 [69]
2010081100051248 [1] 41/6
2011 [10] 48/14 49/5 49/19 51/5 105/18
126/13 134/7 134/17 137/24 160/15
2013 [3] 1/6 2/1 102/1
205F [1] 1/22
21 [1] 105/18
21st [6] 86/5 92/5 95/20 95/25 111/6
116/23
21st century [1] 156/5
22 [4] 4/21 5/3 7/1 48/2
2288 [1] 16/3
23 [2] 12/11 165/16
23rd [2] 19/17 149/12
25 [4] 24/6 46/12 149/5 152/11
25 percent [1] 24/18
250,000 [4] 21/12 21/14 37/7 46/6
25th [3] 1/19 18/9 46/7
26 [10] 1/6 2/1 13/14 14/22 16/18 19/1
20/5 23/1 47/21 102/1
26th [13] 95/20 95/22 107/14 111/6
111/18 111/21 112/5 112/19 113/16
113/22 126/12 127/17 128/3
27th [1] 113/16
28 [5] 13/15 20/3 20/25 24/14 45/23
28th [1] 126/23
29 [1] 37/24
299 [1] 1/22
2A [4] 103/7 103/12 104/5 204/10
2G [2] 103/12 204/10

3
3-28-2010 [1] 45/17
3-31-2010 [2] 34/25 35/8
3.2 million [1] 36/10
30 [23] 14/2 15/6 23/6 26/13 26/22 36/3
37/24 46/10 47/22 48/4 126/21 130/22
133/6 133/16 133/19 135/8 136/6
188/18 189/2 190/8 190/17 190/25
191/12
30th [6] 13/17 14/10 14/18 21/4 23/4
32/15
31 [39] 7/16 7/24 8/2 8/7 35/16 46/22
46/22 48/1 49/19 133/21 168/3 168/4
168/11 168/11 188/18 188/20 188/22
190/5 190/14 190/22 191/10 197/7
197/7 197/11 197/14 198/3 198/6
198/24 198/25 199/1 199/4 199/8
199/10 199/14 199/17 199/20 199/22
200/6 200/8
31st [5] 7/4 8/4 29/17 29/19 97/18
33131 [1] 1/20
33132 [1] 1/16
33301 [1] 1/23

3331 [1] 74/18


35 million [2] 131/9 131/10
35,000 [1] 131/8
350,000 [3] 21/12 21/15 46/7
37 [13] 33/23 36/17 38/14 39/20 155/15
155/18 155/21 155/25 156/7 157/2
158/17 158/18 172/11
3:00 [1] 147/14
3:18 p.m [1] 147/14
3A [4] 79/6 79/7 83/1 83/22
3B [5] 107/12 112/18 112/19 113/6
118/22
3rd [8] 1/19 18/2 23/10 46/1 46/3
183/10 183/13 185/23

4
40 [1] 155/16
42 [5] 44/15 45/12 158/17 158/18
158/21
44 [2] 49/2 49/4
46 [3] 51/6 52/16 52/23
49 million [1] 87/20
4:39 p.m [1] 203/24
4th [2] 1/16 18/8

5
5-13 [1] 23/21
5-25 [1] 24/6
5-3 [2] 22/9 22/19
5.9 million [1] 14/17
50 percent [2] 90/2 179/21
500 [5] 5/4 5/8 5/8 5/13 80/6
500,000 [2] 39/7 46/5
509 million [1] 87/21
53 [1] 204/4
5657 [1] 1/23

6
6.06 [1] 49/14
6.08 [1] 49/25
60 million [1] 132/1
6500 [3] 66/24 121/20 122/3

7
7,000 [1] 164/8
72 [1] 131/25
73 million [1] 131/25
75 [1] 87/15
769-5657 [1] 1/23

8
8-11 [2] 38/15 39/9
80 [1] 204/10
801 [1] 187/5
81 [1] 204/10
85 percent [2] 70/21 87/22
86 [2] 141/22 141/24
860 million [1] 87/19
88 [1] 2/7
8:43 [1] 81/16
8:57 [1] 1/7
8:57 A.M [1] 2/1

9
9-18-13 [1] 204/23
9.3 percent [1] 89/7
90 [1] 90/22
90 days [1] 49/15
90 percent [1] 115/19

94 percent [1] 87/24


954 [1] 1/23
99 [1] 1/16

A
a.m [5] 1/7 2/1 42/12 42/12 101/18
ability [4] 77/18 119/19 122/15 173/12
abnormality [1] 166/13
above [6] 17/11 62/5 195/5 197/16
201/25 204/21
above-entitled [1] 204/21
Absolutely [1] 78/3
Abu [3] 93/15 93/23 132/11
Abu Dhabi [3] 93/15 93/23 132/11
acceptance [1] 77/15
accepted [6] 72/25 135/12 135/15
135/16 135/24 136/2
access [1] 107/18
accommodate [1] 175/8
accomplish [2] 109/7 122/24
accomplished [1] 148/24
accordance [3] 135/16 135/24 136/2
according [6] 7/11 8/1 140/10 142/10
164/13 168/17
account [31] 17/21 17/22 18/1 18/13
19/2 19/3 19/13 22/4 23/16 34/8 34/17
36/11 36/19 36/20 37/25 38/20 38/24
40/14 41/9 45/4 46/16 46/17 46/20
46/21 47/4 47/14 47/19 131/4 131/7
156/19 162/20
account '8744 [1] 41/9
accountant [7] 65/2 65/3 65/3 65/7
96/18 130/8 135/25
accountants [1] 137/6
accounting [9] 65/9 72/25 73/5 94/25
96/21 135/12 135/16 135/24 136/2
accounts [15] 18/10 18/14 131/7
131/17 154/23 155/5 155/5 156/7
158/13 190/11 190/13 190/16 197/24
198/2 198/5
accurate [3] 83/11 172/2 183/12
acknowledged [1] 47/16
acknowledging [5] 9/18 25/18 25/25
158/24 158/24
acknowledgment [15] 8/22 9/15 15/6
15/18 16/4 16/10 17/7 17/23 20/16 23/3
23/11 24/4 24/11 24/16 24/19
acknowledgments [14] 9/6 10/9 14/23
15/1 15/4 16/1 25/17 33/17 44/9 157/22
157/24 158/7 158/12 162/18
acre [1] 144/4
acres [1] 142/4
across [1] 40/17
acting [1] 68/6
action [4] 50/12 50/13 72/5 87/12
actively [1] 86/3
activities [6] 14/13 19/13 65/21 65/23
121/7 154/14
add [3] 21/14 21/15 21/17
added [1] 8/17
adding [1] 22/16
addition [2] 80/3 82/10
address [3] 63/3 69/9 96/4
addressed [3] 105/21 145/23 170/25
adds [1] 21/18
adjudication [1] 145/20
adjust [1] 166/12
administration [3] 62/25 93/16 108/13
admitted [7] 51/17 81/10 143/20

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 207 of207
222

A
admitted... [4] 182/14 188/10 188/14
194/13
admonition [8] 4/4 41/25 43/8 101/3
102/25 147/2 148/13 203/1
advance [6] 17/2 25/19 25/20 27/3 27/6
27/8
advanced [1] 26/1
advancing [1] 119/16
advice [7] 40/11 40/24 40/25 41/5 41/5
41/10 41/10
advised [1] 169/22
affairs [1] 128/7
affects [1] 31/11
afraid [1] 145/9
Africa [2] 70/19 115/24
afternoon [3] 43/20 53/14 176/6
agency [5] 56/21 97/14 125/18 125/20
128/17
agenda [1] 194/21
aggregate [1] 50/3
agree [2] 66/23 134/15
agreement [16] 29/16 32/2 32/5 32/9
49/14 49/18 49/25 50/5 69/8 86/24
115/7 168/18 169/17 169/20 170/2
192/2
aid [3] 61/17 78/4 122/18
air [1] 108/2
Akerman [1] 1/19
AKY [2] 15/10 17/3
AKY-032410-001 [1] 15/10
AKY1 [3] 17/3 17/4 19/4
AKY1-0324 [1] 17/3
AKY1-032410-001 [1] 17/4
al [2] 115/10 116/7
Alford [6] 10/4 11/25 49/6 119/2 149/13
170/5
Alfred [4] 49/7 50/8 50/22 137/2
aligned [2] 55/14 69/25
allegations [2] 72/24 73/5
allow [13] 4/5 17/16 33/3 42/1 43/9
62/16 101/4 103/1 147/3 148/14 166/8
187/5 203/1
allowed [4] 42/7 101/11 147/8 203/13
almost [1] 56/10
alone [2] 138/24 158/14
Alonzo [1] 90/8
altar [1] 55/5
altered [1] 40/19
alternate [2] 2/14 2/15
Amarilis [7] 85/14 85/18 85/23 86/4
87/3 100/16 159/16
ambassador [6] 100/1 100/3 100/5
108/11 108/12 120/23
amend [1] 169/19
amended [1] 98/17
amendment [2] 49/17 170/2
AMERICA [2] 1/5 70/20
American [4] 58/15 59/6 59/9 99/4
amount [22] 16/10 19/5 26/24 27/12
37/11 39/8 40/9 40/10 40/12 40/23
46/12 46/15 46/19 47/4 47/23 48/5 48/8
132/7 169/10 183/12 190/7 199/14
amounts [5] 6/20 19/15 36/23 39/13
187/11
analogy [1] 54/24
and/or [1] 122/20
anecdote [1] 106/1

Angola [1] 115/7


annoying [1] 25/11
answer [15] 29/7 50/19 58/17 109/14
111/15 111/16 118/19 125/19 127/24
153/11 157/20 159/8 172/3 172/20
173/23
answers [1] 171/4
anticipated [3] 122/17 124/10 169/6
anymore [2] 32/25 126/10
apologize [13] 11/21 30/25 70/5 70/9
76/7 89/14 108/9 155/20 162/5 163/6
195/22 203/8 203/12
apparent [1] 94/1
appeal [1] 145/19
APPEARANCES [1] 1/14
application [19] 64/17 77/12 77/14
78/21 79/6 79/9 81/13 81/23 82/20
82/22 83/3 83/8 83/22 84/1 84/13 84/24
87/11 118/24 124/16
applied [1] 165/25
applies [1] 77/13
appreciate [1] 3/5
approach [7] 75/8 103/6 143/5 174/12
181/7 187/15 193/20
approached [2] 30/21 30/23
approaching [2] 67/5 103/5
approval [7] 78/21 93/1 109/10 112/21
114/3 114/7 119/25
approve [1] 126/16
approved [16] 25/6 111/7 111/19 112/5
112/14 112/25 113/2 113/2 113/10
113/14 113/22 126/12 128/3 128/22
129/3 129/4
approving [3] 19/21 62/9 129/1
approximately [6] 69/13 80/5 177/13
180/11 180/21 201/20
April [21] 15/6 21/4 23/4 23/6 36/3 36/3
45/14 114/1 114/1 137/24 138/2 165/16
180/22 182/25 183/10 183/13 185/23
186/7 192/7 192/14 192/15
April 1 [1] 36/3
April 23 [1] 165/16
April 3 [2] 182/25 186/7
April 30 [3] 15/6 23/6 36/3
April 30th [2] 21/4 23/4
April 3rd [3] 183/10 183/13 185/23
Arab [2] 115/10 116/7
Arango [1] 1/18
arbitral [1] 50/1
area [3] 10/5 73/8 127/15
aren't [2] 71/3 104/18
Ari [1] 1/18
arm's [1] 9/16
arrange [1] 107/18
arrangements [6] 2/9 121/2 121/6
123/11 153/5 153/23
arranging [2] 100/7 120/20
arrive [1] 171/13
article [1] 185/8
articles [1] 73/17
Artie [1] 172/19
Aruba [1] 115/14
ascertain [1] 97/22
ascertained [1] 170/8
ascertains [1] 145/19
askew [1] 40/22
aspect [1] 121/4
asserted [3] 33/4 62/17 72/19
assessment [1] 125/19

assets [7] 7/13 14/6 130/22 131/17


131/25 132/1 137/8
assign [1] 120/17
assist [4] 92/25 119/16 121/2 121/12
assistance [2] 121/10 123/9
assistant [2] 1/15 140/21
assisting [2] 79/5 83/7
associated [1] 48/23
assume [4] 122/7 131/4 138/11 154/25
assumed [1] 20/9
Assumes [1] 141/7
assuming [2] 124/9 124/24
assumption [1] 158/23
attached [6] 6/18 6/19 6/21 13/16
21/13 149/14
attachment [5] 7/20 79/20 80/2 80/7
82/8
attack [1] 2/8
attempt [1] 20/23
attempted [1] 171/8
attempting [3] 13/6 37/20 39/12
attendance [1] 193/2
attended [1] 192/9
attorneys [2] 1/15 146/17
attributed [3] 27/4 27/5 27/8
au [5] 144/2 144/4 144/10 154/1 169/3
audit [19] 30/9 32/16 33/6 33/7 33/8
33/13 33/14 48/22 97/24 97/25 98/2
98/6 131/15 134/9 134/10 134/13
134/14 137/7 137/20
audited [23] 29/10 32/10 32/13 33/11
49/16 49/20 96/6 96/9 96/13 96/15
96/24 97/9 97/15 98/5 136/8 136/14
136/21 136/22 136/25 137/3 137/13
137/17 137/25
auditing [1] 129/17
auditor [1] 65/4
auditors [2] 32/15 96/10
August [19] 12/1 12/14 17/2 18/2 18/8
19/19 25/18 29/19 38/21 38/24 41/9
46/22 49/19 97/16 97/18 97/19 98/17
137/14 141/25
August 11th [3] 38/21 38/24 41/9
August 3 [1] 17/2
August 31 [2] 46/22 49/19
August 31st [2] 29/19 97/18
August 3rd [1] 18/2
August 4th [1] 18/8
August, [1] 47/3
August, 2010 [1] 47/3
Avenue [1] 1/19
average [1] 77/13
aware [16] 28/23 32/25 48/24 57/21
73/21 90/18 128/13 128/14 138/9
139/17 148/23 164/23 164/24 165/2
165/3 201/13

B
bachelor's [1] 177/7
background [6] 65/9 89/12 94/12 94/14
95/15 105/7
badge [1] 2/25
balance [23] 7/6 7/12 13/18 14/4 34/17
35/15 37/2 40/10 84/9 129/11 129/14
130/3 131/13 187/24 188/1 188/17
188/24 189/4 189/6 190/13 190/16
197/6 199/1
balances [1] 131/14
bank [57]

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 208 of208
222

B
banks [1] 125/22
Barack [2] 71/16 71/18
barge [3] 100/8 108/13 120/23
basic [1] 122/14
basis [7] 48/20 49/12 83/9 138/16
164/3 182/21 189/9
basketball [4] 60/5 60/9 60/13 90/10
bat [2] 89/15 91/15
Bate [44]
Bates [2] 190/20 196/21
bear [1] 125/13
began [2] 54/17 55/19
begin [2] 164/7 164/9
beginning [8] 9/25 11/25 54/21 55/1
56/2 91/13 149/9 164/4
begins [1] 119/8
believe [40] 9/25 11/15 26/12 32/19
37/2 50/22 51/5 54/16 56/22 66/2 66/22
81/4 89/17 95/19 106/1 109/1 110/2
125/19 132/5 133/25 135/3 154/6 158/5
160/16 162/16 163/19 166/22 170/11
172/10 180/3 180/13 180/15 180/22
181/1 184/3 184/6 186/5 195/16 196/18
202/12
believed [1] 118/17
below [7] 72/3 84/25 190/11 195/1
197/24 199/6 199/12
bench [2] 102/2 174/15
Bernie [2] 89/25 192/23
besides [1] 175/13
BGR [2] 66/10 66/12
bigger [1] 68/1
bilateral [2] 126/3 126/6
Bill [11] 63/8 67/7 71/13 105/23 106/11
108/25 109/1 109/2 109/25 110/1
120/11
bills [1] 131/20
bio [1] 90/1
black [2] 185/10 185/10
blacked [1] 124/6
blank [1] 157/14
blanking [1] 193/1
block [1] 14/24
blue [1] 139/14
blurry [2] 40/17 51/9
Blvd [1] 1/22
board [22] 99/9 99/11 106/14 106/22
123/16 123/23 124/1 191/24 192/9
192/17 193/2 193/7 193/10 194/7
194/16 195/11 195/14 195/17 195/20
195/22 200/18 201/12
boats [1] 178/23
book [1] 10/13
booming [1] 134/19
Boozer [2] 60/6 90/14
borrower [5] 6/7 69/21 82/2 97/21
110/12
borrowers [3] 6/7 112/10 165/7
bottom [19] 9/1 10/23 15/5 15/12 16/6
21/2 24/6 25/16 37/25 47/22 166/14
167/24 168/2 168/8 168/8 168/9 191/9
194/23 200/10
bought [1] 179/2
box [2] 63/3 114/18
break [18] 3/9 41/22 42/7 43/13 43/15
43/21 44/2 76/6 100/24 101/11 107/7
146/18 146/22 146/23 146/24 147/8

148/22 203/13
Brito [1] 160/2
brochure [3] 149/14 149/16 169/13
brother [2] 99/13 123/17
Broward [1] 1/22
build [30] 28/9 66/24 68/22 68/24 77/9
77/9 77/10 77/11 107/19 116/13 125/5
125/16 134/1 140/15 141/1 141/4 141/5
145/25 146/10 146/16 150/5 150/9
150/10 152/4 162/10 162/11 162/22
169/9 169/23 178/15
building [22] 93/16 93/23 117/15 118/5
132/10 133/8 134/20 140/21 140/23
140/25 142/15 142/24 144/5 144/23
144/23 150/22 151/11 151/16 162/10
163/1 169/16 172/23
buildings [4] 142/22 169/1 169/1 173/1
built [28] 63/15 93/16 93/23 117/18
122/23 140/18 141/22 141/24 142/11
150/6 150/15 150/19 151/15 151/18
151/22 151/22 152/7 152/21 153/9
154/6 168/14 168/17 168/20 168/24
169/1 169/14 169/25 180/21
Bulls [1] 60/10
bungalows [5] 142/6 142/8 144/5
151/15 151/23
Bush [7] 99/12 105/10 106/13 123/17
123/18 192/23 196/5
business [24] 10/18 18/10 54/25 57/4
57/5 57/13 58/19 59/5 72/11 75/6 75/21
98/16 114/11 114/12 114/14 114/22
124/3 125/25 135/3 144/8 173/13 177/7
177/10 189/14
businesses [1] 57/9
businessman [2] 70/22 123/18
businessmen [2] 99/18 99/18
buy [8] 63/14 63/22 66/25 114/23 141/2
141/4 141/14 162/22
buying [1] 118/8

C
cadastre [1] 145/15
calculate [1] 39/12
calculating [1] 37/3
calculation [2] 6/19 8/18
calendar [1] 188/20
call [23] 11/25 12/5 13/6 13/9 53/24
112/8 112/10 112/12 112/16 112/25
113/21 113/24 114/7 118/15 127/25
128/1 128/2 139/1 139/3 171/13 174/9
174/10 174/25
called [15] 12/1 32/15 41/17 62/7 66/6
111/6 111/19 111/21 112/4 112/4
112/11 138/14 167/23 176/19 177/15
calling [3] 67/7 127/16 138/14
calls [5] 12/25 13/1 61/1 62/14 144/8
Cameron [7] 10/4 11/24 49/6 79/1
119/2 149/13 170/5
campaign [2] 71/21 123/20
Canada [4] 16/16 17/21 19/3 19/12
capability [3] 122/21 123/2 165/13
capital [3] 80/4 82/11 176/19
capitalization [1] 196/22
car [1] 154/6
Carballo [3] 89/25 192/23 196/9
career [1] 177/12
cargo [2] 99/6 108/3
Caribbean [9] 28/6 85/18 86/24 150/2
150/3 150/4 150/8 159/13 159/16

Carlos [2] 60/5 90/14


cash [34] 5/22 6/5 6/9 6/10 8/14 8/15
8/16 13/19 14/8 14/12 14/13 47/22
47/22 48/2 48/2 48/5 48/5 48/8 130/22
130/22 131/1 131/8 131/10 190/4 190/4
190/6 190/7 190/22 191/8 197/11
197/12 200/4 200/10 200/10
causes [1] 5/23
CCH [3] 176/18 182/22 189/13
CCH Housing [3] 176/18 182/22
189/13
cease [1] 51/1
Center [1] 176/23
central [1] 145/18
century [1] 156/5
CEO [2] 70/21 120/22
certified [1] 172/1
certify [1] 204/20
cetera [6] 79/24 91/6 91/6 118/12
118/12 125/24
CFO [1] 185/2
CGI [2] 109/22 121/18
chair [2] 71/20 123/20
chairman [2] 70/21 72/6
challenges [1] 145/18
channels [2] 110/8 110/10
character [3] 74/23 74/24 75/2
cheaper [1] 178/15
check [5] 88/25 89/18 95/16 105/8
131/14
checkbook [1] 10/15
checked [1] 109/24
Cheryl [2] 61/10 61/13
Chicago [1] 60/10
chief [2] 155/1 171/17
children [1] 177/2
China [3] 70/19 90/2 115/15
choice [1] 114/6
chopped [1] 172/15
Chris [3] 123/18 192/25 193/1
Christmas [2] 76/16 76/18
Christopher [2] 35/21 95/19
CHS [8] 72/6 72/20 94/14 94/17 94/19
96/9 105/5 110/15
circles [1] 123/19
cities [2] 51/20 53/1
citizens [2] 122/21 123/2
city [3] 52/9 176/23 178/2
claim [2] 48/18 201/2
claims [2] 50/2 145/12
Clark [7] 99/2 99/8 107/21 108/3
120/20 196/15 196/17
class [2] 72/5 87/20
Class A [1] 87/20
Claudio [22] 10/5 12/1 18/6 18/8 31/1
49/6 54/9 70/20 85/9 92/19 93/11
100/14 100/18 149/12 160/1 170/18
170/22 171/6 171/20 177/20 178/10
195/20
clear [5] 5/13 28/23 130/17 135/17
145/13
clearance [1] 105/25
cleared [1] 105/7
client [4] 77/17 128/12 136/19 149/13
client's [2] 77/18 128/7
clients [3] 73/23 78/25 173/9
Clinton [38] 62/25 63/8 63/14 63/18
63/19 63/21 66/25 67/2 67/3 67/7 69/8
69/17 71/13 71/13 71/20 75/11 100/7

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 209 of209
222

C
Clinton... [21] 105/23 105/23 106/4
106/8 106/11 108/12 108/25 109/2
109/3 109/23 109/25 110/1 119/13
120/4 120/11 120/14 120/25 121/4
121/18 122/9 122/11
Clinton's [2] 67/10 123/20
Clintons [3] 63/8 72/1 72/2
close [4] 144/12 144/13 144/15 176/1
closed [1] 144/6
closely [1] 138/8
closer [1] 40/15
clothing [1] 185/8
co [1] 71/20
co-chair [1] 71/20
Cochran [1] 95/19
Cohen [4] 189/7 189/12 189/13 202/14
colleague [2] 153/2 153/23
college [2] 60/13 96/19
column [2] 17/2 190/21
combined [6] 14/8 14/16 27/12 129/14
167/22 191/3
comfort [2] 11/23 124/2
comfortable [1] 165/13
commencement [1] 50/1
comment [1] 36/6
comments [2] 81/24 81/25
commercial [1] 173/11
commit [1] 75/13
commitment [8] 5/5 28/5 109/11
109/19 114/10 127/14 128/6 129/6
commitments [3] 111/11 123/5 129/7
committee [2] 43/12 123/21
common [2] 55/13 73/8
communicate [1] 11/21
communicating [1] 11/20
communications [1] 12/9
community [3] 119/12 120/4 132/10
companies [22] 10/14 26/4 56/16 57/7
57/9 57/12 57/12 57/16 129/14 131/12
144/9 162/17 162/21 164/4 176/12
176/14 176/21 176/23 179/3 190/5
197/12 198/3
company [144]
company's [7] 32/15 119/16 129/20
151/3 151/4 191/17 200/17
compare [1] 39/3
comparison [2] 39/5 168/3
compensate [1] 145/10
complain [1] 174/16
complete [5] 33/18 33/21 41/14 44/3
115/19
completed [1] 125/11
complex [1] 117/4
complexities [1] 29/22
compliance [2] 6/20 49/18
complicate [1] 30/9
components [1] 120/25
composite [4] 68/18 103/7 178/14
178/17
computer [1] 1/25
con [1] 142/23
concede [5] 3/25 43/4 102/19 102/22
148/9
concentrate [2] 2/11 129/12
concept [1] 114/18
concern [7] 6/12 9/14 10/6 10/20 47/12
89/17 171/11

concerned [9] 6/5 33/9 33/10 36/14


36/15 67/6 94/25 95/6 96/7
concerning [2] 9/16 9/17
concerns [3] 28/23 31/12 96/3
Concessions [1] 35/18
concluded [2] 201/11 203/24
conclusion [2] 73/10 73/11
condition [12] 141/18 184/22 186/23
187/1 187/7 188/4 191/15 193/3 193/14
197/9 200/15 200/17
conditions [8] 52/16 52/17 52/22 52/23
117/25 118/3 118/4 118/4
conduct [1] 62/8
conducted [2] 33/14 110/11
conference [5] 103/14 103/17 103/22
104/2 104/16
confirm [2] 126/9 131/15
confirmation [1] 16/23
confuse [1] 20/23
confusion [2] 14/25 15/16
Congratulations [1] 159/16
connection [6] 60/21 62/11 62/22
85/24 113/5 122/8
connections [7] 62/24 63/1 70/23
71/10 71/12 71/24 119/19
consistent [2] 114/2 132/17
consisting [1] 13/18
consolidated [5] 7/6 49/16 190/5
198/23 200/4
consolidating [1] 29/21
consolidation [1] 192/6
constitute [1] 161/2
construct [2] 139/22 146/5
constructed [10] 27/3 115/8 115/11
115/15 123/23 140/21 142/9 142/10
142/16 173/20
constructing [2] 118/8 173/15
construction [15] 68/19 68/25 69/11
69/13 75/19 82/18 117/16 121/14 122/3
126/15 139/18 142/7 142/19 144/3
162/11
consulting [2] 66/16 66/17
contact [12] 61/7 66/19 66/20 105/4
105/6 120/12 120/17 121/8 138/13
161/22 162/2 162/3
contacted [2] 33/6 60/23
contacting [1] 51/2
contained [3] 9/13 31/25 36/12
contemporaneous [1] 105/17
context [5] 63/24 115/21 130/13
133/20 165/25
contexts [1] 105/3
continued [7] 4/16 20/2 28/18 73/14
103/8 122/10 204/3
continuing [1] 186/8
contract [22] 5/12 17/8 17/10 18/4
18/16 19/15 19/16 19/17 19/18 20/17
28/6 28/8 63/21 120/19 121/20 126/2
136/11 136/24 137/11 150/3 159/12
187/13
contract/e-mail [1] 19/15
contracts [6] 33/17 75/16 109/22 118/7
120/1 139/7
contributed [1] 25/6
contributing [1] 172/18
contribution [4] 5/5 5/8 5/10 5/14
control [1] 171/24
controlled [2] 154/23 155/4
controls [3] 88/1 88/3 95/1

conversation [12] 10/2 15/15 32/22


33/1 65/14 82/16 82/19 83/5 92/16
105/1 115/22 170/4
conversations [10] 12/6 64/21 137/12
161/1 161/7 178/11 186/22 186/25
187/9 187/14
coordinating [1] 61/17
copied [1] 49/6
copies [1] 140/9
copy [10] 38/6 38/8 38/11 39/7 80/22
129/11 149/13 155/17 157/4 181/13
Coral [2] 123/22 176/19
Corigin [1] 176/17
corporate [1] 65/13
Corporation [1] 120/22
corrected [2] 7/3 14/23
correction [1] 144/11
cost-effective [1] 69/12
counsel [16] 2/4 3/25 42/16 43/4 102/4
102/19 139/15 147/18 148/9 156/1
163/5 163/7 163/9 174/2 182/2 203/9
count [1] 84/16
countries [6] 56/17 57/6 59/11 59/11
125/23 173/11
country [9] 61/17 85/5 125/4 125/12
125/21 126/4 126/5 126/7 173/8
court [17] 1/1 1/21 1/21 1/22 3/14
42/11 42/18 53/10 101/15 102/5 103/4
108/7 147/12 147/19 148/20 203/21
204/24
courteous [1] 138/17
courtroom [19] 2/2 2/21 3/24 42/5
42/13 43/3 101/9 101/17 102/12 102/18
147/6 147/13 147/15 148/1 148/8 185/3
185/6 203/7 203/23
courts [1] 48/19
covenant [6] 5/25 8/17 9/16 49/14
49/19 49/24
covenants [2] 6/19 6/20
cover [4] 34/2 155/16 157/2 188/21
covered [1] 10/16
covers [3] 188/22 189/3 189/4
CPA [1] 129/17
CR [1] 1/4
CRAIG [32] 1/8 4/21 6/2 6/23 7/2 7/19
8/22 13/15 16/20 18/6 18/7 19/20 20/8
21/1 21/5 23/25 31/1 37/11 39/15 39/19
49/6 51/2 81/19 81/22 121/24 127/4
127/9 156/21 160/1 165/16 166/19
171/7
CRDD [4] 74/21 74/22 89/14 95/17
created [5] 56/20 84/7 84/8 159/18
160/8
credibility [2] 72/13 72/14
credit [6] 63/19 68/7 79/3 84/3 92/25
119/7
credits [4] 35/1 35/5 35/6 36/4
crews [3] 139/21 139/23 142/14
crisis [1] 128/25
critical [2] 5/23 69/10
cross [12] 39/21 52/3 52/6 53/7 53/12
87/6 103/8 141/9 174/21 174/23 203/11
204/4
cross-examination [6] 53/7 53/12 87/6
103/8 141/9 203/11
cross-examine [3] 39/21 52/3 52/6
CRR [2] 1/21 204/24
crusty [1] 138/19
CT1 [1] 80/18

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 210 of210
222

C
Czech [1] 115/23

D
D.C [1] 66/16
daily [1] 37/2
data [4] 13/6 37/21 79/13 95/17
date [22] 10/1 18/2 18/15 22/19 23/3
23/5 23/9 24/2 26/21 26/22 35/20 41/9
49/18 51/15 52/5 136/5 182/24 190/23
196/20 201/24 202/3 204/24
dated [7] 13/14 21/1 25/17 46/13 49/5
49/5 76/14
dates [5] 48/7 130/14 130/17 130/18
187/25
day-to-day [2] 154/21 202/15
dealer [1] 154/7
dealings [4] 41/18 75/6 86/18 124/3
dealt [4] 9/11 56/15 86/19 170/15
Dear [3] 2/6 81/22 156/22
death [1] 55/7
debt [2] 6/10 12/16
December [26] 68/21 74/6 76/14
133/19 133/21 168/3 168/4 168/11
168/11 171/5 188/18 188/20 188/22
190/5 190/14 190/22 191/10 197/7
197/11 197/14 198/3 198/24 199/1
199/8 199/14 200/6
December 15 [1] 76/14
December 30 [1] 133/19
December 31 [21] 133/21 168/3 168/4
168/11 168/11 188/18 188/20 188/22
190/5 190/14 190/22 191/10 197/7
197/11 197/14 198/3 198/24 199/1
199/8 199/14 200/6
decent [1] 53/3
decided [1] 48/15
decision [1] 198/14
decrease [1] 48/5
decreased [1] 48/9
deducted [1] 26/25
default [19] 5/24 32/5 32/9 48/11 48/16
48/20 48/21 48/25 49/4 49/9 49/12
49/13 49/24 50/6 50/9 126/2 161/4
161/8 161/9
defaulting [1] 160/11
defaults [3] 50/10 50/11 161/2
Defendant [2] 1/9 1/17
Defendant's [13] 80/19 80/20 80/23
80/24 81/10 81/12 103/12 111/23
111/25 143/6 143/10 143/20 204/9
Defendant's 1 [4] 80/19 80/20 80/23
81/12
defendants [1] 73/15
Defense [1] 203/9
definition [1] 72/15
defrauded [1] 54/16
deliberately [1] 72/22
deliver [1] 49/15
denial [2] 73/14 77/15
department [7] 61/8 65/13 121/1 121/6
121/11 128/18 153/3
depending [2] 77/18 171/3
depends [1] 93/4
deposit [12] 18/13 19/3 21/4 24/18
25/7 27/1 35/17 38/24 39/2 40/10 40/12
46/23
deposited [6] 17/22 17/25 38/18 38/21

40/14 45/18
deposits [11] 22/15 23/24 35/1 35/5
35/6 35/14 35/16 36/4 45/16 157/21
172/17
depth [1] 74/21
derived [1] 133/9
deriving [1] 132/22
describe [2] 70/18 185/8
described [1] 93/8
describing [2] 65/20 79/22
description [2] 68/12 68/14
designated [1] 39/8
designed [2] 52/24 125/21
desire [2] 62/12 97/25
desk [1] 158/6
destroyed [1] 145/17
detail [6] 36/6 79/20 80/2 82/8 170/22
172/3
detailed [3] 28/25 72/17 92/24
details [5] 38/1 38/3 38/4 115/20
202/15
determine [2] 69/23 145/15
develop [1] 64/10
developer [1] 176/8
developmental [1] 84/6
Dhabi [3] 93/15 93/23 132/11
difference [3] 12/15 39/12 96/15
difficult [2] 141/13 173/9
difficulties [3] 59/2 172/23 173/14
difficulty [1] 59/4
digest [1] 13/4
dignitaries [2] 99/17 123/24
diligence [25] 58/8 72/4 72/10 72/16
72/17 73/21 73/24 74/13 74/23 74/24
75/18 77/19 90/4 90/5 97/22 109/9
109/20 109/21 110/11 110/13 110/14
110/21 111/5 114/4 117/3
Dimitrouleas [1] 1/11
direct [23] 4/12 4/16 5/2 5/17 8/25
10/22 34/15 38/14 86/18 103/18 119/1
174/23 175/5 176/4 184/8 189/1 189/5
189/17 190/10 190/19 191/2 204/3
204/6
directed [2] 30/15 60/1
directing [6] 21/1 22/9 23/15 26/20
45/11 190/21
directly [4] 11/21 12/1 96/5 190/10
director [3] 85/6 86/12 158/9
directors [9] 85/3 123/16 124/1 191/24
193/7 194/7 195/11 195/15 201/12
disbursed [1] 169/7
disbursement [17] 6/1 11/11 12/2 12/3
19/22 26/12 27/12 27/24 35/23 67/5
98/6 109/21 113/25 120/2 127/14
141/19 141/20
disbursements [2] 26/17 26/23
disbursing [1] 11/14
disclosing [1] 73/20
disclosure [2] 95/15 166/15
disclosures [5] 166/4 166/18 191/19
191/21 193/18
discount [1] 5/11
discuss [16] 4/5 5/22 42/1 42/7 43/9
53/20 60/17 101/4 101/11 103/1 147/2
147/8 148/14 173/10 203/1 203/14
discussed [11] 4/5 5/4 42/1 43/9 101/4
103/1 137/5 147/3 148/14 156/22 203/1
discussing [1] 105/5
discussion [18] 62/19 63/20 64/9

66/22 66/24 121/16 130/5 138/11


139/15 143/1 146/17 156/1 163/5 163/7
163/9 174/2 175/21 182/2
discussions [3] 83/12 160/22 161/6
disposal [1] 122/16
distinction [1] 88/8
distinguish [1] 136/18
distinguishing [1] 124/19
DISTRICT [4] 1/1 1/2 1/12 1/22
DIVISION [1] 1/3
document [29] 7/11 10/24 11/4 16/22
19/7 28/16 39/2 40/8 40/16 41/4 79/10
111/22 163/15 164/13 164/13 182/18
187/20 190/3 190/19 190/20 191/5
193/15 193/25 194/15 194/21 196/22
197/5 197/16 200/1
documentation [9] 17/19 40/19 47/17
98/15 114/4 137/8 145/16 170/24 172/1
documentations [1] 41/19
documents [9] 9/12 9/13 41/12 157/18
181/10 182/4 182/7 191/18 193/18
dollar [2] 57/25 187/11
dollars [4] 17/12 34/18 180/15 201/19
dollars' [1] 134/19
domain [4] 118/11 141/1 145/7 150/16
donating [2] 99/6 108/3
door [1] 96/25
draft [2] 98/15 137/10
draw [1] 17/1
DRC [2] 19/16 19/18
drill [1] 32/25
Duany [1] 196/13
dumping [1] 13/6
duties [2] 62/6 62/7
duty [1] 2/9

E
e-mail [37] 4/21 6/21 7/20 12/9 13/14
17/10 18/6 18/7 20/25 32/24 49/5 80/22
81/3 81/12 82/19 85/17 85/21 113/4
143/3 143/14 143/23 144/2 145/4
155/16 156/20 156/24 157/3 157/4
157/6 157/7 159/12 160/1 160/2 160/6
165/16 171/16 172/21
e-mail/contract [1] 18/4
e-mails [2] 13/11 61/11
ear [3] 106/3 106/23 106/24
early [5] 12/14 48/12 56/21 60/17 97/20
earn [3] 57/24 58/2 58/9
earns [2] 57/21 58/11
earthquake [17] 51/14 51/21 59/3
61/16 68/23 74/1 74/4 74/12 76/25
108/21 121/15 123/7 125/3 145/12
145/17 146/7 154/2
East [8] 88/20 88/22 88/23 89/19 94/7
117/17 117/18 132/6
Eastern [1] 88/17
economics [1] 177/9
educated [2] 65/7 96/19
effective [1] 69/12
effects [5] 31/8 31/10 84/8 84/9 84/9
efficient [3] 68/19 69/12 178/15
efforts [3] 118/9 119/11 119/22
Eight [1] 183/25
Eight percent [1] 183/25
Elba [11] 9/2 10/25 11/5 15/13 15/23
15/23 16/6 16/12 155/6 157/24 158/2
electronics [1] 149/7
element [1] 67/4

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222

E
elements [3] 79/14 82/16 84/2
eliminated [1] 172/15
elimination [1] 12/16
ELMO [3] 70/8 70/12 76/4
elsewhere [1] 70/23
embassies [1] 144/9
emerging [3] 56/16 57/12 65/22
eminent [4] 118/11 141/1 145/7 150/16
Emirates [3] 115/10 116/7 180/4
employ [1] 79/15
employed [1] 167/12
employees [2] 140/1 144/10
enable [1] 41/2
encountered [1] 172/23
encourage [1] 173/11
energy [1] 68/19
engaged [1] 177/10
engagement [1] 32/16
enter [2] 19/17 19/18
enterprise [2] 68/6 136/20
enterprises [1] 173/11
entirely [2] 28/23 55/22
entities [8] 9/21 44/10 44/13 116/18
116/19 117/5 131/13 176/15
entitled [2] 196/22 204/21
entity [5] 10/10 15/23 44/24 132/6
165/8
entrepreneur [1] 123/18
entries [2] 17/11 22/14
entry [8] 17/1 17/12 23/8 23/21 24/2
38/15 38/21 189/1
environment [1] 173/13
environmental [2] 79/15 84/11
equipment [8] 24/19 25/8 27/2 27/15
27/17 98/24 132/3 133/24
equity [10] 5/14 24/17 27/4 27/9 27/11
27/16 27/20 27/21 151/3 151/4
equivalent [1] 50/4
equivalents [7] 47/23 48/3 48/5 130/23
190/4 197/12 200/10
era [1] 73/9
erect [1] 12/21
erected [2] 152/14 154/1
erection [1] 142/23
Ernst [6] 137/19 137/24 137/25 138/6
138/10 138/14
error [2] 20/23 39/1
especially [1] 61/16
Esq [5] 1/14 1/15 1/17 1/18 1/18
essentially [2] 50/9 114/15
established [3] 70/22 117/9 165/9
estate [5] 99/22 176/8 177/9 177/11
178/7
et [6] 79/24 91/6 91/6 118/12 118/12
125/24
et cetera [6] 79/24 91/6 91/6 118/12
118/12 125/24
Etcheverry [10] 51/12 52/14 61/22
139/12 140/4 140/5 140/9 143/3 143/14
143/23
Europe [1] 57/2
evaluate [5] 64/11 64/23 71/3 72/13
84/6
evaluating [2] 63/17 64/22
evaluation [3] 75/1 79/1 84/2
evening [3] 202/25 203/4 203/12
everyone [5] 4/4 12/5 43/8 102/25

148/13
evidence [25] 16/25 38/19 47/18 51/16
51/24 51/25 76/9 80/23 81/10 104/19
112/18 118/22 127/2 134/3 141/8
143/20 145/13 149/4 149/10 163/3
165/11 165/12 182/14 188/10 194/13
evidenced [3] 17/7 17/7 52/22
evidencing [1] 52/11
ex [2] 106/11 106/22
ex-politician [1] 106/22
ex-president [1] 106/11
examination [12] 4/13 4/16 53/7 53/12
79/17 81/7 87/6 103/8 141/9 163/12
176/4 203/11
examine [3] 39/21 52/3 52/6
exceed [1] 50/3
exception [1] 57/18
excuse [18] 2/24 3/4 11/15 38/10 51/22
51/22 54/13 55/9 80/14 112/18 123/12
125/9 139/13 146/16 162/5 163/4 163/6
163/8
excused [5] 2/9 3/7 4/10 174/6 174/8
excusing [1] 2/14
executing [1] 136/24
executive [12] 9/2 11/1 11/6 15/13
15/24 16/12 60/23 61/3 61/6 61/8 85/7
140/20
exhibit [71]
Exhibit 2 [1] 100/23
Exhibit 25 [1] 149/5
Exhibit 2A [1] 103/7
Exhibit 3 [2] 111/23 143/7
Exhibit 37 [2] 155/15 156/7
Exhibit 3A [1] 79/6
Exhibit 3B [1] 112/18
Exhibit 4 [5] 116/24 127/1 127/6
134/17 134/18
Exhibit 42 [1] 45/12
Exhibit C [24] 4/21 5/3 12/11 13/14
19/1 20/25 24/14 33/23 38/14 39/25
41/5 44/15 46/12 47/21 48/2 49/4 51/6
52/16 52/23 67/13 163/16 165/15
165/20 172/11
Exhibit G [9] 181/12 182/10 182/17
182/20 187/19 188/7 188/15 193/24
194/10
exhibited [2] 25/12 193/16
exhibiting [1] 165/10
exhibits [12] 54/5 55/16 55/17 76/3
103/7 103/12 181/16 182/13 202/23
204/8 204/9 204/14
existed [3] 52/9 97/6 145/16
exited [7] 42/5 101/9 101/17 147/6
147/13 203/7 203/23
expand [1] 57/9
expect [4] 43/22 164/11 166/1 167/13
expectation [3] 120/1 164/10 168/20
expected [4] 13/4 47/19 164/19 167/20
expecting [1] 25/5
expedite [1] 12/23
experience [6] 56/11 112/9 136/1
136/20 166/9 173/9
experienced [1] 167/25
expertise [1] 127/15
explain [9] 5/7 36/25 111/16 125/18
164/1 166/25 177/18 197/22 202/14
explained [3] 114/14 144/1 178/14
explaining [4] 93/12 111/13 143/4
153/12

explains [2] 134/9 144/1


explanation [3] 26/24 27/10 52/1
explanations [3] 9/13 25/15 166/17
export [1] 84/9
expound [1] 92/18
expressed [1] 10/19
expressing [1] 15/16
extended [1] 49/18
extension [1] 29/17
extensive [1] 124/20
extent [3] 6/8 40/21 115/21
external [1] 128/6
extraordinary [1] 166/11

F
F-R-E-E-D-M-A-N [1] 176/3
fabricate [1] 68/18
face [3] 69/22 94/10 94/10
face-to-face [1] 94/10
faced [1] 141/16
facilitate [1] 107/18
facilities [1] 117/15
facility [9] 68/18 69/11 80/3 82/9 82/18
126/16 133/22 133/24 168/21
facing [1] 30/8
fact [18] 6/22 19/24 33/3 35/16 39/14
60/12 62/16 71/20 98/23 105/3 106/16
139/17 161/15 161/22 163/20 170/9
171/5 171/12
factories [36] 9/2 11/1 11/6 15/25
18/11 24/18 25/7 27/1 27/4 33/20 34/4
41/17 44/7 44/14 65/22 89/20 93/15
114/15 115/3 115/6 115/8 116/13
117/11 117/12 117/14 132/23 133/6
133/8 135/5 158/5 179/25 180/6 183/18
183/20 199/7 199/8
factors [1] 125/12
factory [33] 12/3 12/21 24/19 27/2
66/24 68/22 68/25 77/9 77/11 88/22
92/5 92/10 93/5 93/10 114/18 114/24
115/11 115/14 115/18 120/24 125/16
135/9 167/8 167/12 167/14 167/19
179/13 179/16 179/19 179/20 179/22
179/23 180/20
facts [6] 18/3 18/5 20/24 53/16 53/20
141/7
failed [2] 49/25 54/7
failure [1] 160/12
faith [3] 58/6 118/13 118/15
fall [1] 63/25
falls [1] 54/20
fashioned [1] 76/6
fast [4] 67/6 78/2 78/19 83/19
faster [1] 62/12
father [3] 65/25 66/4 89/23
February [5] 48/12 49/5 113/25 160/17
160/18
February 11 [1] 49/5
fee [4] 57/25 58/6 58/6 58/9
fees [7] 26/24 27/5 35/11 38/1 45/21
57/24 58/2
Fernandez [2] 2/15 4/10
fewer [2] 169/10 170/9
fiduciary [1] 62/6
fight [1] 50/11
figure [4] 28/1 163/21 163/22 164/18
figures [8] 8/12 22/1 90/20 91/23
170/19 171/21 198/8 198/9
filed [4] 113/1 161/17 161/23 200/23

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222

F
files [3] 110/20 110/20 110/23
fill [1] 64/17
filled [4] 79/11 79/12 79/25 80/8
filling [1] 83/7
final [6] 6/18 6/18 6/20 8/16 137/10
200/21
finalize [1] 111/8
finally [4] 30/20 191/2 199/19 200/1
finance [14] 9/10 65/9 65/13 68/5 68/6
96/19 96/20 96/20 96/23 123/19 123/21
130/10 130/10 153/2
financed [1] 169/8
finances [2] 10/21 145/9
financial [66]
financially [1] 198/12
financials [14] 12/14 31/11 49/20 96/13
96/24 97/9 97/15 98/5 124/5 126/20
137/3 137/13 137/17 193/12
financing [4] 68/16 79/9 119/1 142/17
fine [2] 80/20 174/25
finish [6] 83/14 109/14 113/6 122/13
135/21 153/14
finished [12] 83/16 117/7 133/11
133/20 134/8 166/23 167/2 167/3 167/4
167/6 199/12 203/11
finishing [1] 203/9
firm [5] 66/12 66/16 66/19 99/22
129/18
first-time [1] 137/7
fiscal [2] 34/3 49/16
fishy [1] 29/2
five million [1] 5/6
five percent [2] 89/2 89/4
five-plus [1] 201/18
fix [1] 112/6
flag [1] 97/5
flight [3] 108/19 108/23 109/2
flights [1] 122/12
flipped [1] 149/20
floating [1] 93/23
Floor [1] 1/19
FLORIDA [9] 1/2 1/6 1/16 1/20 1/23
71/21 99/13 123/17 176/11
flow [6] 5/22 6/5 8/14 9/20 17/23
190/23
flown [1] 18/9
flows [4] 13/19 14/8 191/8 200/4
focus [1] 119/8
folders [1] 139/14
follow-up [1] 143/3
food [7] 19/15 19/17 19/19 27/25 67/4
152/2 154/2
foregoing [1] 204/20
foreign [6] 57/5 122/20 123/5 123/6
123/9 173/12
foreman [3] 140/11 140/11 144/21
Forgive [1] 109/8
forgot [2] 80/15 143/9
form [8] 18/20 20/10 29/4 32/6 130/11
165/24 166/4 166/6
forma [21] 7/6 7/9 17/8 46/11 129/15
129/22 130/3 130/4 130/7 130/8 130/10
130/19 135/18 136/4 165/21 165/23
165/24 166/4 166/10 189/18 197/17
formas [1] 44/10
former [12] 63/18 67/9 99/12 99/13
99/15 106/13 108/12 120/11 120/22

120/22 122/11 123/17


FORT [3] 1/3 1/6 1/23
forwarded [3] 18/7 160/4 160/6
Foster [10] 1/14 4/14 41/21 43/24
79/16 107/1 107/9 156/17 204/3 204/4
Foster-Steers [3] 1/14 204/3 204/4
foundation [6] 31/16 51/23 52/2 104/7
166/7 185/18
foundations [2] 139/25 142/22
founded [1] 70/20
Francine [3] 1/21 204/23 204/24
frankly [1] 49/1
free [1] 67/9
Freedman [23] 123/21 174/11 174/21
175/6 175/14 175/22 175/24 176/3
176/6 176/7 177/15 181/10 182/4
182/16 185/22 187/18 188/12 188/14
193/23 194/15 198/8 203/8 204/5
frequent [1] 13/3
Friday [3] 12/4 43/20 43/21
friend [1] 177/20
friend's [1] 177/21
front [3] 118/23 158/6 158/19
fulfilling [1] 5/5
function [2] 75/4 95/13
fund [1] 71/21
fundamental [2] 117/10 117/10
fundamentally [1] 126/11
funding [2] 12/22 79/21
funds [30] 9/20 16/24 17/24 22/12
24/17 24/22 25/3 25/4 25/6 25/19 26/1
27/3 27/5 27/8 27/9 27/11 27/14 27/24
28/14 35/20 36/10 37/14 38/4 40/11
40/24 40/25 41/5 41/10 64/18 170/8

goods [11] 116/20 133/11 133/20


134/8 166/23 167/2 167/3 167/4 167/6
199/6 199/12
Google [3] 72/16 73/16 110/4
Googled [2] 72/8 95/6
gotten [1] 160/6
governance [1] 194/24
government [22] 53/19 56/21 57/5
57/19 59/4 66/15 66/17 79/7 79/9 110/6
118/12 119/14 123/10 125/20 126/1
145/9 145/21 146/1 149/3 149/10
173/12 174/9
government's [19] 145/17 175/24
181/11 181/16 182/10 182/13 182/17
182/20 187/19 187/21 188/7 188/10
188/15 193/24 194/1 194/10 194/13
204/2 204/14
governmental [1] 141/3
governments [4] 122/20 123/5 123/6
173/13
governor [2] 99/13 123/17
graduate [1] 96/20
great [4] 93/12 141/12 174/7 179/8
greater [1] 89/4
Green [4] 100/1 100/2 108/11 120/21
gross [3] 91/11 163/21 164/5
ground [3] 121/7 140/14 164/4
group [10] 26/4 68/7 83/17 84/1 119/6
119/7 128/18 129/14 131/11 132/11
grow [2] 57/9 57/12
growing [4] 7/13 14/6 132/15 132/18
growth [4] 165/6 165/7 167/25 168/4
guidance [2] 79/12 82/4
Guyana [2] 2/7 4/9

GAAP [2] 72/22 72/25


Gamboa [11] 9/2 10/25 11/5 15/13
15/23 15/23 16/6 16/12 155/6 157/25
158/2
gather [2] 69/20 84/16
gathered [3] 71/6 95/20 121/22
gauge [1] 75/13
geek [1] 155/23
general [8] 65/20 85/6 96/13 99/2 99/4
115/21 196/15 196/17
General Clark [1] 196/17
generation [1] 14/13
gentleman [3] 137/19 141/25 201/2
gentleman's [1] 153/1
George [4] 99/20 123/17 123/22
195/16
Georgetown [1] 90/12
Germany [3] 70/19 93/24 117/20
Gerstin [1] 1/18
GFS [1] 35/18
GFS Concessions [1] 35/18
gives [3] 40/11 43/22 58/11
Global [13] 63/8 63/19 63/21 66/25
67/3 69/9 69/17 109/23 119/13 120/4
120/5 121/18 122/9
goal [2] 55/13 69/25
gonna [32] 17/16 22/23 50/11 54/4
55/25 63/6 63/14 76/5 80/15 80/22 91/2
91/10 92/18 93/2 98/23 103/6 105/11
111/2 111/22 116/19 116/22 119/8
119/21 120/18 127/17 127/22 141/2
143/5 143/6 149/7 156/21 166/8
good-faith [3] 58/6 118/13 118/15

habit [1] 25/12


Habitat [1] 119/13
Haiti [92]
Haitian [6] 80/6 82/12 119/14 122/20
123/2 154/1
half [4] 43/15 56/10 175/7 179/23
hand [7] 53/19 175/23 181/25 187/18
190/5 190/7 193/18
handed [1] 181/10
handing [1] 193/23
handle [1] 171/18
handwriting [6] 20/6 34/3 36/7 36/21
36/22 38/18
hanging [1] 104/2
happy [1] 87/9
Harlan [2] 66/4 89/22
Harvey [1] 192/23
he'll [1] 175/18
head [3] 49/1 68/6 94/9
hear [4] 2/23 62/20 67/2 77/5
heard [13] 18/1 52/20 59/16 60/19
61/11 85/16 173/17 173/17 173/18
173/19 177/15 177/18 192/25
hearing [2] 43/14 174/15
hearsay [10] 11/16 31/17 33/2 50/14
61/1 62/14 173/23 185/17 186/15 187/4
heart [1] 2/8
heartstrings [1] 139/4
heat [2] 53/3 90/12
heir [1] 98/25
hello [1] 106/17
help [14] 52/24 55/13 56/16 57/7 57/8
57/9 57/12 78/5 78/14 93/3 98/24

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222
69/10 69/25 122/14 122/17 144/6
176/18 182/22 189/13
hum [69]
Humanity [1] 119/13
hundred [3] 34/18 57/25 184/19
hurricanes [1] 53/3

170/13 181/2 183/15 185/22


indicates [2] 24/20 72/5
help... [3] 107/18 146/8 150/10
indicating [7] 23/4 37/9 38/20 50/8
helped [1] 189/13
124/7 138/9 157/5
helping [5] 64/16 82/20 83/10 83/11
indication [2] 35/24 122/9
173/16
indications [1] 37/4
here's [5] 87/19 127/1 140/3 140/7
individual [4] 162/17 162/17 183/18
I
157/9
183/19
Hermena [1] 2/12
I'd [6] 56/1 81/6 104/5 129/11 187/18
individually [1] 50/3
193/24
hesitancy [1] 11/13
individuals [6] 104/4 107/17 108/20
high [5] 55/23 56/13 104/4 106/22
I'll [17] 33/3 62/16 67/25 70/8 70/10
123/24 123/25 161/23
139/5
70/12 91/2 99/24 111/2 111/22 126/24 inevitably [1] 64/17
129/10 134/4 142/2 143/5 181/25 187/5 inference [1] 40/18
high-level [4] 56/13 104/4 106/22
139/5
I'm [120]
inflate [1] 73/6
higher [1] 78/13
I've [7] 3/8 3/8 4/9 43/12 61/11 95/24
inflated [1] 72/22
181/10
highest [1] 105/25
influence [1] 119/15
highlight [1] 70/2
idea [9] 43/22 53/1 57/4 57/15 146/7
information [57]
154/18 159/2 159/5 159/8
highlighted [2] 63/18 79/17
infrastructure [1] 84/8
highlighting [1] 79/18
identification [12] 80/24 103/6 103/13 infused [1] 178/19
111/23 111/25 143/10 181/11 181/17
highly [2] 28/20 123/18
initial [5] 65/14 67/2 79/8 109/19
187/19 187/21 193/24 194/1
Hillary [8] 71/13 71/20 105/23 106/3
120/21
106/7 120/25 121/4 123/20
identified [4] 41/3 79/23 190/22 191/3 initially [3] 30/14 77/11 198/14
hired [1] 137/18
identify [1] 11/19
initiative [17] 61/19 61/21 63/8 63/14
historic [3] 130/14 130/18 136/5
identifying [1] 11/16
63/19 63/21 66/25 67/3 69/9 69/17
historical [1] 166/9
Ignore [2] 29/7 50/19
75/11 109/23 119/13 120/4 120/5
hit [2] 76/25 120/18
II [1] 144/5
121/19 122/9
Hobson [3] 174/18 174/20 175/1
imagine [1] 144/20
initiatives [1] 195/8
hold [1] 156/21
ImClone [1] 66/6
INNOPIC [1] 74/18
holder [1] 5/20
immediately [7] 12/4 13/6 80/6 82/13 INNOPIC-3331 [1] 74/18
83/17 106/8 122/16
holding [2] 183/20 190/6
Innorez [1] 162/19
Holdings [40] 5/9 5/21 6/6 7/23 14/9
impact [2] 84/6 173/4
InnoVida [166]
14/19 15/14 15/19 15/20 18/10 22/13
impacts [1] 84/12
InnoVida MRD [1] 41/18
25/25 33/19 34/6 37/7 41/9 44/7 44/13 impediment [1] 118/4
InnoVida's [4] 122/15 144/3 173/5
44/25 45/13 70/18 70/20 88/15 119/1
implementation [3] 68/17 80/2 82/9
188/4
123/22 124/12 124/19 162/19 164/11
implications [1] 173/7
INNRF000008 [1] 190/20
176/17 180/23 182/8 182/22 187/24
impossible [3] 141/3 141/13 146/11
INNRF000009 [1] 191/4
188/17 190/4 191/8 197/1 197/6 198/24 impress [3] 107/2 107/9 169/4
INNRF000055 [1] 196/21
Holdings, [14] 7/5 7/12 14/24 16/7
impressed [2] 107/11 107/16
inquire [1] 60/24
16/13 22/13 25/18 34/8 36/17 38/24
impression [1] 64/9
inquiry [4] 6/2 6/15 21/5 25/16
45/5 82/2 84/23 181/5
Improper [1] 104/7
inserted [1] 40/23
Holdings, Inc [1] 22/13
improved [1] 25/24
instance [3] 38/9 120/11 172/19
Holdings, LLC [13] 7/5 7/12 14/24 16/7 in-house [1] 32/24
instead [2] 160/4 171/13
16/13 25/18 34/8 36/17 38/24 45/5 82/2 inability [1] 48/22
institute [1] 145/18
84/23 181/5
inaccuracies [1] 29/1
instituted [1] 164/15
home [9] 4/9 5/5 5/8 5/8 5/13 69/12
inactive [1] 115/24
instructions [1] 20/19
69/13 118/5 142/11
inartful [1] 134/23
insulated [1] 168/22
homes [33] 5/10 28/9 51/14 63/22
Inc [1] 22/13
insulation [1] 178/20
66/25 68/24 69/7 78/11 80/6 82/12
include [1] 142/5
insurance [1] 126/1
107/19 118/8 121/20 122/3 122/10
included [2] 63/20 73/14
intended [1] 174/25
134/1 142/1 142/6 142/10 142/16 146/6 includes [1] 80/7
intention [2] 24/22 25/3
150/15 164/8 168/20 168/24 169/5
including [3] 61/22 69/8 131/17
interacting [1] 51/2
169/9 170/6 170/9 173/15 173/20
income [17] 7/22 8/2 8/5 8/6 13/18
intercompany [5] 12/16 162/7 162/8
178/15 179/17
14/17 68/20 90/22 91/25 163/16 168/1 162/9 162/12
168/4 168/7 190/23 191/10 199/19
Honor [55]
interest [10] 65/21 88/10 90/16 165/11
200/5
Honorable [1] 1/11
183/24 184/1 184/5 184/11 184/14
hope [1] 2/24
inconsistencies [3] 29/1 33/16 171/10 201/25
hotel [4] 142/6 142/8 142/9 144/5
incorrect [3] 12/13 12/15 12/17
interested [7] 11/10 58/7 77/8 78/6
hour [2] 43/15 175/7
increase [3] 14/12 48/5 168/10
122/9 122/12 143/25
house [24] 32/24 60/2 60/14 60/21
increased [1] 168/1
interests [4] 90/7 116/12 117/11 133/8
61/13 61/14 62/19 62/21 62/22 62/23
indeed [2] 33/5 97/24
internal [1] 47/16
71/16 78/14 93/24 100/7 104/11 104/22 independent [2] 95/8 129/17
internally [2] 75/3 160/5
105/4 110/1 118/5 128/18 141/1 141/2 independently [1] 161/7
international [3] 29/21 96/20 122/18
141/14 144/10
INDEX [2] 204/1 204/8
interrupt [1] 112/13
House's [1] 62/11
India [1] 115/6
interrupting [1] 71/8
houses [17] 25/5 63/14 67/1 77/9 77/10 indicate [12] 5/21 6/9 24/17 82/1 82/8 interval [1] 184/4
77/11 98/1 122/25 125/6 134/20 140/25 104/15 108/18 132/24 179/24 185/12
introduced [7] 13/14 67/17 79/6 177/20
141/4 141/22 141/24 145/25 150/9
186/13 200/18
177/23 182/17 194/16
172/24
indicated [14] 10/13 12/2 17/24 17/25 introducing [2] 50/15 178/4
housing [12] 12/21 52/12 60/18 68/20 29/18 48/21 84/5 116/8 121/19 142/24 introduction [7] 80/5 81/6 82/12 104/5

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222
51/15 101/17 102/2 104/18 147/13
147/15 203/23
introduction... [3] 112/3 143/17 178/10 July [9] 18/9 19/4 19/17 25/17 46/10
inventory [2] 131/23 167/19
46/10 46/13 46/16 46/22
invest [4] 178/8 179/13 180/8 180/14
July 1 [1] 46/10
invested [6] 179/15 179/19 183/5
July 16 [1] 46/13
183/10 183/13 201/19
July 16th [1] 19/4
investigate [3] 72/11 74/9 89/3
July 23rd [1] 19/17
investigation [2] 72/12 89/16
July 25th [1] 18/9
investing [1] 198/15
July 30 [1] 46/10
investment [10] 132/4 132/9 145/5
July 31 [1] 46/22
180/19 180/20 180/22 182/7 189/14
jump [1] 137/16
198/13 198/14
June [15] 1/6 2/1 13/17 14/2 14/10
investments [4] 180/24 180/25 181/2
14/18 26/22 37/24 47/22 48/4 48/8 52/9
183/18
102/1 140/9 142/14
investor [1] 161/23
June 14th [1] 140/9
investors [10] 60/6 60/7 65/25 87/12
June 30 [5] 14/2 26/22 37/24 47/22
88/6 114/23 114/23 179/11 179/12
48/4
179/21
June 30th [3] 13/17 14/10 14/18
invoice [20] 9/20 10/8 10/9 10/11 10/23 juror [3] 2/21 2/25 3/7
15/10 17/2 17/8 19/4 20/15 20/16 22/19 jurors [2] 2/5 3/13
22/20 24/16 25/20 46/11 46/13 47/7
jury [76]
47/8 162/14
K
invoices [7] 10/18 26/3 33/17 47/15
162/7 162/17 162/18
Karen [1] 80/15
involvement [1] 62/19
Kathuria [2] 196/1 196/17
issue [11] 48/16 75/8 105/20 110/15
keep [10] 12/24 62/12 110/13 134/2
128/5 128/8 141/1 145/23 150/17
146/23 146/23 150/20 151/5 152/1
200/24 201/1
156/3
issued [5] 10/18 48/11 127/10 128/12 keeping [1] 10/20
160/16
key [1] 74/19
issues [16] 70/8 74/19 74/21 74/22
Khaimah [2] 115/10 116/7
109/6 117/24 118/11 118/11 119/18
kids [1] 150/11
124/25 129/6 141/13 141/17 143/4
Kimberly [1] 1/15
145/5 160/10
knowing [1] 154/15
issuing [1] 50/6
knowledge [2] 51/1 58/21
it'd [1] 185/17
knowledgeable [1] 64/20
item [4] 166/14 166/16 168/6 199/14
Korge [8] 35/21 123/18 162/1 162/2
192/25 193/1 201/6 201/7
items [1] 166/11

140/17 200/24 201/1


learning [1] 178/5
leases [1] 173/20
leave [3] 3/1 82/2 83/24
led [3] 89/16 106/1 133/25
Ledra [5] 2/12 2/13 2/19 2/22 4/10
Ledra's [1] 4/8
legal [7] 50/1 85/5 118/4 118/11 125/5
141/13 173/7
legitimacy [1] 145/15
lenders [1] 69/15
length [1] 9/16
letter [14] 15/17 48/11 48/16 48/25
49/4 49/10 50/6 50/8 50/9 76/9 138/9
160/11 160/16 160/16
letters [1] 80/16
letting [1] 184/21
liabilities [1] 137/9
liaison [1] 66/16
lifting [1] 151/11
Limited [4] 9/2 11/1 11/6 88/15
Linda [1] 160/2
lined [1] 37/6
lines [4] 40/17 40/22 125/25 187/14
list [9] 60/7 84/25 85/5 87/15 88/6
88/12 88/14 89/22 195/11
listening [1] 138/8
lists [1] 86/12
literally [2] 10/15 168/2
litigation [16] 30/7 30/8 30/11 30/12
30/15 30/20 31/4 31/7 31/13 31/23 32/1
32/4 48/17 48/23 94/21 161/16
LLC [15] 7/5 7/12 14/24 16/7 16/13
23/19 25/18 34/8 36/17 38/24 45/1 45/5
82/2 84/23 181/5
loan [53]
loaned [5] 58/18 97/14 185/22 185/25
201/16
loaning [2] 186/6 186/21
loans [7] 56/16 57/17 113/20 125/23
J
L
160/12 184/16 184/20
Jacqueline [1] 1/18
Labadee [3] 151/8 169/3 170/10
lobbyist [1] 66/12
James [3] 68/1 68/4 68/5
labeled [1] 166/10
local [2] 48/19 99/17
January [17] 66/2 77/3 81/13 83/3 86/5 lack [3] 11/23 50/10 72/14
location [3] 79/23 177/25 179/25
92/5 92/5 105/18 107/14 111/6 111/6
LaMacchia [5] 32/19 33/1 33/5 137/19 logistical [3] 120/13 121/2 121/10
111/18 112/19 113/16 113/25 126/23
137/25
logistics [1] 98/20
160/15
land [13] 125/5 141/5 141/14 141/17
Lois [1] 1/14
145/6 145/8 145/13 145/19 145/25
January 19 [1] 81/13
long-term [1] 125/22
146/1 150/16 173/21 177/9
January 19th [1] 83/3
longest [1] 125/23
January 21 [1] 105/18
landholdings [1] 145/7
lose [2] 31/13 91/13
January 21st [3] 86/5 92/5 111/6
landowners [1] 145/12
loss [9] 8/3 91/7 91/10 91/19 124/7
January 26th [3] 111/6 112/19 113/16 language [6] 50/4 50/4 80/11 83/2 83/2 124/8 164/12 164/18 164/20
83/6
January 28th [1] 126/23
losses [6] 164/4 164/5 164/5 164/23
January, [3] 39/17 51/5 126/13
large [4] 67/21 99/22 122/14 198/14
164/24 165/3
January, 2010 [1] 39/17
larger [2] 114/24 180/22
lost [2] 157/8 173/19
January, 2011 [2] 51/5 126/13
larges [1] 57/16
Louisiana [1] 116/8
Jared [2] 177/22 178/10
late [8] 59/18 63/25 81/16 114/1 202/8 love [4] 54/20 54/21 54/24 60/13
202/12 202/13 202/14
Jeb [7] 99/12 105/10 106/13 106/17
low-income [1] 68/20
123/17 192/23 196/5
LAUDERDALE [3] 1/3 1/6 1/23
loyalty [1] 62/6
Jencks [2] 174/22 202/22
lawsuit [3] 161/23 200/23 200/25
lumped [1] 183/20
Jiang [1] 90/2
lawsuits [6] 160/10 160/13 160/20
lunch [8] 3/4 43/15 43/21 101/3 101/6
160/22 161/17 200/22
jive [1] 19/9
110/14 128/16 175/10
job [6] 10/20 55/15 62/8 64/23 86/14
lawyer [8] 32/24 61/14 126/9 127/18
Luncheon [1] 101/18
131/14
127/18 127/18 137/2 137/2
lunchtime [1] 43/13
jobs [1] 84/7
lawyers [9] 98/10 98/13 98/15 111/8
Lynn [8] 49/7 68/2 68/4 68/6 119/2
112/6 112/15 137/10 143/1 162/3
John [1] 159/15
156/22 157/7 204/3
joint [3] 114/23 115/7 116/12
lead [1] 110/2
M
Jonathan [1] 66/10
learn [3] 86/16 132/9 200/22
judge [12] 1/12 2/2 2/6 39/18 42/13
learned [7] 65/24 66/2 115/6 117/2
Machhour [1] 88/16

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222
91/15 98/17 99/8 112/12 116/1 118/16
128/25 130/2 130/8 134/16 135/19
machine [1] 38/8
135/23 139/17 139/21 140/24 154/12
machinery [2] 25/8 27/2
154/20 155/23 159/5 164/1 165/23
mail [41]
175/7 198/13
mails [2] 13/11 61/11
meaning [3] 31/11 75/1 133/8
major [5] 6/8 96/19 96/20 117/24
means [8] 4/10 128/12 129/17 130/11
117/25
145/15 165/24 189/20 197/19
makeshift [1] 51/20
meant [10] 7/8 38/10 87/9 122/7 131/12
makeup [1] 123/15
138/12 189/22 189/24 190/1 197/20
Malfunction [1] 70/4
measurable [1] 169/10
man [2] 81/20 81/20
mechanical [1] 1/24
manage [1] 189/13
medium [2] 68/6 136/20
management [9] 7/9 20/1 56/13 69/23 meds [1] 66/6
88/9 89/5 154/19 159/3 195/5
meet [5] 75/10 77/17 153/5 153/22
manager [12] 9/2 11/1 11/6 15/14
158/5
15/24 16/12 32/16 158/3 158/4 158/11 meeting [32] 3/8 43/12 60/16 64/5 64/6
176/18 176/22
65/17 86/5 86/11 92/19 105/18 107/15
managing [1] 158/9
121/23 121/24 122/1 122/2 122/5 122/6
manipulated [1] 73/5
171/6 171/21 178/1 193/8 193/10 194/8
manipulations [1] 72/23
194/16 197/22 200/19 200/21 201/6
Mantz [1] 66/10
201/7 201/8 201/9 201/11
manufacture [1] 168/21
meetings [5] 171/7 192/9 193/2 196/16
manufacturing [14] 27/15 27/17 68/17 201/12
69/11 80/3 82/9 82/18 121/15 126/15
member [3] 85/6 99/9 163/25
144/6 144/12 144/15 144/16 168/21
members [23] 5/7 5/18 6/4 6/13 7/1 8/1
March [22] 7/4 7/16 7/24 8/2 8/4 8/7
11/19 26/9 36/25 40/25 41/24 46/14
14/7 35/16 48/1 48/8 114/1 180/13
53/10 76/2 99/11 101/2 106/22 147/1
180/14 197/7 198/6 198/25 199/4
163/25 172/9 192/17 200/18 202/24
199/10 199/17 199/20 199/22 200/8
membership [1] 195/14
March 31 [15] 7/16 7/24 8/2 8/7 35/16 memo [3] 67/25 68/1 93/1
48/1 197/7 198/6 198/25 199/4 199/10 memorandum [1] 69/20
199/17 199/20 199/22 200/8
memorize [2] 103/22 104/2
March 31st [2] 7/4 8/4
memory [2] 66/7 112/8
March, [1] 48/4
merely [1] 68/25
March, 2010 [1] 48/4
method [1] 69/12
Margolis [2] 177/22 178/10
Miami [21] 1/16 1/20 70/23 71/10 86/6
Mario [4] 140/10 142/4 142/11 144/19 90/12 92/4 92/5 94/3 94/7 95/25 99/17
mark [5] 80/15 100/22 105/11 111/22
116/6 133/22 133/23 135/9 167/14
123/3
167/19 178/3 179/15 180/19
marked [15] 80/23 80/24 103/6 103/12 Michael [1] 189/7
111/25 143/6 143/10 181/11 181/17
microfinance [1] 69/14
187/18 187/21 193/23 194/1 204/9
microphone [1] 176/1
204/14
mid [1] 113/25
marker [1] 130/20
mid-January [1] 113/25
market [5] 79/23 80/6 82/12 123/8
middle [10] 38/9 88/17 88/20 88/22
178/21
88/23 89/19 94/7 117/17 117/18 132/6
markets [3] 57/10 65/22 125/22
mike [2] 103/25 153/1
marks [2] 40/18 118/14
military [5] 98/24 107/21 107/24 108/2
marriage [3] 54/18 54/23 55/5
120/20
married [1] 176/25
million [57]
marshal [1] 57/1
millions [1] 134/19
material [5] 162/10 178/14 178/18
Mills [2] 61/10 61/13
178/22 202/22
mine [4] 36/8 130/21 153/2 177/20
materials [2] 91/6 162/22
minimize [1] 14/24
matter [6] 33/4 62/17 71/20 106/16
minor [1] 112/6
161/22 204/21
minute [12] 20/5 38/17 41/25 53/8 63/6
matters [1] 101/16
70/7 99/24 113/6 116/25 129/12 147/2
maturity [2] 201/24 202/11
150/4
May 1 [1] 45/23
minutes [6] 42/3 42/8 42/11 147/4
May 13th [2] 24/3 46/6
147/9 147/12
May 25th [1] 46/7
mirrors [1] 50/4
May 28 [1] 45/23
missed [1] 161/19
May 29 [1] 37/24
Mississippi [2] 116/4 180/21
May 31st [1] 29/17
mistaken [1] 160/19
May 3rd [3] 23/10 46/1 46/3
mitigants [1] 124/23
McNulty [1] 153/2
mix [1] 178/18
mean [34] 7/7 12/8 53/25 55/12 55/21 mobilize [2] 107/21 107/25
63/7 72/24 76/22 86/22 86/22 86/25
mobilizing [1] 12/2

model [1] 64/10


modern [1] 132/9
mom [4] 2/23 2/24 3/6 4/8
moment [3] 70/5 183/4 202/4
money [56]
monies [6] 26/5 45/17 52/17 52/23
173/5 201/25
month [7] 33/20 36/2 45/14 45/16
46/16 47/3 74/3
months [9] 51/21 52/12 77/20 77/22
77/23 78/23 98/2 113/20 114/2
Moran [4] 85/14 85/18 87/3 159/16
Moran-Osorio [1] 85/14
morning [5] 4/18 4/19 53/14 53/15
171/12
mother [1] 2/7
motivation [1] 78/7
Moukaddem [4] 88/16 89/20 195/22
196/19
Mourning [1] 90/8
move [14] 2/14 11/11 18/14 20/10 29/4
50/18 58/7 78/14 81/6 98/21 104/5
109/16 114/3 143/17
moved [5] 38/10 61/16 74/12 78/2
78/19
movement [4] 12/3 16/24 38/4 107/19
moving [7] 19/21 37/3 62/12 83/19
92/3 112/2 118/16
Mr [5] 103/17 103/24 122/2 175/4 204/4
Mr. [235]
Mr. Alfred [2] 50/22 137/2
Mr. Carballo [1] 196/9
Mr. Cohen [3] 189/12 189/13 202/14
Mr. Craig [1] 121/24
Mr. Fernandez [2] 2/15 4/10
Mr. Freedman [15] 175/22 176/6 176/7
177/15 181/10 182/4 182/16 185/22
187/18 188/12 188/14 193/23 194/15
198/8 203/8
Mr. George [1] 195/16
Mr. Hobson [3] 174/18 174/20 175/1
Mr. Jeb [1] 196/5
Mr. Korge [4] 162/1 162/2 201/6 201/7
Mr. LaMacchia [3] 32/19 33/1 33/5
Mr. Moukaddem [3] 89/20 195/22
196/19
Mr. Osorio [57]
Mr. Osorio's [2] 75/5 85/15
Mr. Patricoff [2] 92/20 121/25
Mr. Perez [2] 195/18 196/17
Mr. Ryan [2] 185/22 191/23
Mr. Seikaly [1] 196/11
Mr. Sharpstein [19] 100/25 102/8
102/22 103/3 146/19 147/22 148/17
163/14 163/20 164/22 165/15 166/21
168/14 168/25 169/12 169/25 172/22
182/1 202/18
Mr. Sharpstein's [2] 170/15 172/4
Mr. Smith [4] 137/3 174/18 174/20
175/1
Mr. Toll [91]
Mr. Toll's [8] 2/4 6/14 25/22 42/16
102/4 147/18 197/8 200/14
Mr. Waksal [5] 64/21 65/15 65/18
65/19 196/7
Mr. Weis [1] 85/17
MRC [2] 132/4 132/10
MRD [1] 41/18
Mrs. [3] 4/8 4/10 195/24

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222

M
Mrs. Ledra [1] 4/10
Mrs. Ledra's [1] 4/8
Mrs. Osorio [1] 195/24
Ms [5] 132/13 156/14 204/3 204/4
204/6
Ms. [81]
Ms. Etcheverry [7] 139/12 140/4 140/5
140/9 143/3 143/14 143/23
Ms. Foster [1] 79/16
Ms. Foster-Steers [6] 4/14 41/21 43/24
107/1 107/9 156/17
Ms. Ledra [3] 2/13 2/19 2/22
Ms. Pelosi [2] 104/23 104/25
Ms. Smith [6] 67/13 68/9 69/4 150/20
155/20 156/4
Ms. Tabernacki [56]
multiple [2] 131/12 145/11

N
N.E [1] 1/16
nail [1] 170/6
name [15] 9/1 22/7 61/11 67/10 72/8
82/1 130/19 137/19 153/1 157/24 176/1
176/2 177/21 192/25 201/4
named [4] 60/13 61/10 64/1 72/5
names [3] 85/5 192/21 193/1
Nancy [5] 63/1 104/10 104/14 105/9
109/25
national [2] 123/19 123/20
nations [1] 123/8
nature [13] 56/17 58/1 61/3 64/25
78/17 88/17 89/13 95/10 141/12 142/24
170/3 171/15 191/21
near [1] 202/11
nearly [1] 77/16
necessary [2] 120/24 165/12
necessity [1] 122/14
negative [7] 5/21 6/5 8/14 59/7 91/11
91/25 199/24
negligible [1] 90/7
negotiate [1] 137/5
negotiated [1] 137/3
negotiations [2] 98/10 98/12
neither [1] 171/13
net [13] 8/5 8/6 8/14 14/17 91/25 164/4
164/5 164/12 168/7 190/23 191/9
199/19 200/5
New York [1] 176/11
NGO [4] 63/14 69/8 119/12 120/4
NGOs [9] 69/9 69/14 75/11 75/11 77/8
118/7 118/10 121/11 144/9
Nguyen [3] 68/2 68/4 68/6
Ni [1] 90/2
nice [3] 101/6 171/22 203/4
nickel [1] 96/25
nine [6] 43/18 43/20 203/3 203/5
203/18 203/21
nine o'clock [3] 203/3 203/18 203/21
Nixon [1] 56/25
no-show [1] 153/24
Nobody [1] 154/7
non [1] 161/8
non-notification [1] 161/8
none [2] 71/23 75/21
nonresponsive [4] 30/17 30/19 109/12
109/16
noon [3] 3/8 3/10 43/14

normal [2] 43/16 164/2


note [12] 2/5 65/24 92/11 143/4 182/21
182/24 183/8 183/24 184/2 184/12
201/23 201/24
noted [4] 95/3 106/19 107/2 107/11
notes [14] 28/22 92/11 92/23 92/24
93/3 94/18 95/25 105/12 105/15 105/16
105/17 105/19 116/2 143/24
notice [4] 40/11 142/22 161/3 161/21
noticed [4] 38/5 38/7 38/23 40/16
noticing [1] 40/21
notification [1] 161/8
notify [2] 48/23 49/25
notwithstanding [2] 59/3 118/10
November [4] 31/19 32/15 64/13 64/15
November 30th [1] 32/15
nowhere [1] 88/7
number [73]
Number 000121 [1] 183/2
Number 001362 [1] 39/25
Number 001568 [1] 49/9
Number 001780 [1] 5/3
Number 001781J [1] 5/18
Number 001784 [1] 6/25
Number 001786 [2] 7/18 48/2
Number 001788 [1] 7/21
Number 001807 [1] 10/23
Number 001808 [1] 11/3
Number 0022 [1] 16/3
Number 002278 [1] 14/21
Number 002280 [1] 13/24
Number 002281 [1] 47/21
Number 002285 [2] 16/19 20/6
Number 002286 [1] 18/25
Number 002289 [1] 16/9
Number 003039 [1] 24/13
Number 003045 [1] 26/8
Number 003050 [1] 46/12
Number 003052 [1] 21/25
Number 003053 [1] 23/15
Number 003055 [1] 165/20
Number 003057 [1] 166/22
Number 003116 [1] 12/11
Number 003223 [1] 37/23
Number 003225 [1] 34/7
Number 003228 [1] 35/3
Number 003231 [1] 36/16
Number 003235 [1] 38/3
Number 003237 [2] 38/13 41/8
Number 003250 [1] 44/15
Number 003251 [1] 45/3
Number 003258 [1] 45/12
Number 003260 [1] 45/20
Number 003262 [1] 46/9
Number 003265 [1] 46/21
Number 003392 [1] 51/19
Number 003394 [1] 52/10
number AKY [1] 17/3
number AKY1-032410-010 [1] 19/4
number four [1] 14/22
number one [2] 13/16 49/17
numbers [16] 8/11 10/8 10/9 10/11
17/17 80/7 80/16 80/17 91/15 91/23
131/15 164/14 170/19 171/17 171/25
193/16
nuts [3] 113/21 113/23 114/6

oath [4] 3/19 42/24 102/14 148/3


Obama [4] 60/14 71/16 71/18 123/21
objection [33] 2/16 17/15 18/20 20/10
29/4 29/24 30/17 31/15 32/6 33/2 44/17
50/23 51/3 51/23 52/18 52/18 52/19
60/25 62/14 81/8 87/4 104/18 109/13
141/7 143/18 166/6 173/22 173/22
182/11 185/17 187/4 188/8 194/11
obligation [1] 171/14
obtain [1] 75/5
obtained [3] 19/10 28/5 37/5
occasion [2] 9/5 193/14
occasions [5] 53/20 54/1 129/13 171/9
202/11
ocean [1] 120/24
October [11] 21/1 30/6 31/19 64/13
64/14 98/17 135/8 160/20 161/13
161/14 171/5
October 30 [1] 135/8
October 5 [1] 21/1
October/December [1] 171/5
odd [4] 8/13 10/19 18/2 159/25
offer [4] 126/1 182/9 188/6 194/9
office [12] 60/23 61/4 61/6 61/24 92/5
93/23 100/19 128/7 158/3 158/4 158/11
189/8
officer [5] 85/7 110/22 155/1 171/17
189/13
officers [2] 85/3 85/9
offices [2] 105/18 154/6
official [5] 1/21 110/8 110/10 139/5
204/24
officially [1] 110/23
offtaker [1] 123/10
oftentimes [1] 165/6
oh [20] 11/21 12/8 22/25 24/23 27/16
30/3 38/10 40/8 60/6 61/19 89/8 104/20
108/9 144/13 168/3 168/7 170/13
181/24 189/16 192/23
old-fashioned [1] 76/6
on-site [1] 153/6
one o'clock [1] 43/19
ongoing [3] 33/7 92/11 94/2
opening [2] 34/17 65/21
operate [3] 91/10 125/21 126/4
operating [4] 5/21 8/14 14/13 135/10
operation [16] 57/19 68/17 88/21 90/24
92/4 92/10 94/2 94/7 94/15 96/12 98/21
134/25 135/3 154/21 180/3 191/4
operational [3] 116/9 117/8 117/9
operations [13] 14/16 61/15 70/19
88/23 89/18 91/12 124/20 164/12
167/23 195/6 198/16 198/23 199/1
OPIC [79]
OPIC's [7] 28/20 45/17 52/17 52/23
150/7 169/23 173/5
opinion [3] 70/24 71/1 71/6
opportunities [1] 57/5
opportunity [4] 59/20 63/21 79/23
146/5
opposed [2] 54/17 56/5
orange [1] 130/20
order [9] 35/15 38/11 63/24 75/17
77/19 92/3 114/3 122/24 171/9
ORG [1] 22/13
organizations [4] 44/6 69/8 122/18
141/17
O
organize [2] 108/2 120/12
o'clock [4] 43/19 203/3 203/18 203/21 original [5] 15/15 24/22 25/3 39/2

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222

O
original... [1] 161/8
originally [4] 6/17 27/11 27/18 180/19
Osorio [82]
Osorio's [3] 75/5 85/15 100/14
overnight [1] 157/8
Overrule [1] 62/18
Overruled [8] 30/18 32/8 39/22 51/4
61/2 87/7 141/10 186/17
owe [1] 62/6
owed [1] 131/17
owing [1] 131/21
owned [3] 66/6 118/12 176/14
owners [2] 89/4 90/3
ownership [10] 88/8 88/10 89/2 90/16
145/11 145/19 145/25 179/22 197/1
201/3
owns [3] 88/3 99/20 146/1

P
p.m [4] 102/1 147/14 147/14 203/24
package [5] 34/14 35/10 193/7 193/12
194/7
packet [1] 194/16
page [44]
page 2 [1] 79/17
page 75 [1] 87/15
page 90 [1] 90/22
pages [4] 21/13 79/10 92/23 156/11
palace [2] 93/16 117/16
panel [2] 69/11 75/19
panels [38] 24/21 25/5 27/13 68/19
80/5 82/11 82/17 93/8 94/4 98/24
107/19 108/1 120/21 122/17 126/15
126/16 133/15 133/24 134/1 134/20
135/6 135/7 142/20 142/21 144/17
146/6 146/15 151/11 162/10 167/4
167/10 167/11 167/12 167/13 168/22
173/15 178/19 179/17
paper [2] 63/20 71/5
paragraph [15] 12/12 12/19 26/16
27/23 28/4 49/23 68/13 69/3 70/3 70/18
119/8 121/13 122/13 184/8 194/23
paragraph 5 [1] 194/23
paragraph B [1] 184/8
paraphrasing [1] 171/19
parent [14] 5/24 6/5 6/8 13/17 14/20
49/13 49/15 49/17 49/24 50/2 164/11
164/24 180/23 181/3
parse [2] 119/21 136/17
part [20] 5/15 7/8 55/7 57/1 83/22
84/19 107/5 107/6 107/6 118/18 118/19
167/20 169/16 192/2 192/4 193/2 193/7
197/8 198/14 201/2
participant [1] 126/2
participate [1] 78/9
participated [1] 63/2
participating [1] 124/1
parties [3] 9/17 110/18 172/18
partner [5] 57/4 57/12 85/6 88/20 90/2
partnered [1] 132/11
partnering [2] 60/17 77/8
party [3] 16/23 47/18 112/2
pass [3] 2/10 71/3 123/15
passing [2] 70/24 71/1
Patricoff [2] 92/20 121/25
Pause [2] 42/22 194/2
pay [4] 73/23 75/22 91/21 122/24

payer [1] 25/25


payment [8] 17/6 23/4 23/13 23/25
25/19 84/9 122/17 202/12
payments [6] 184/1 184/5 184/12
184/14 201/25 202/7
pdf [1] 160/3
Pelosi [8] 63/2 104/10 104/14 104/23
104/25 105/7 105/9 109/25
pending [1] 94/21
people [36] 12/21 28/22 51/20 52/24
53/1 55/13 62/5 62/25 64/23 69/17
73/20 78/4 78/6 78/9 79/14 87/15 89/5
122/24 124/2 139/21 139/25 140/10
141/17 142/14 142/20 144/23 145/8
145/8 146/8 150/10 150/22 151/10
154/2 165/6 196/18 197/2
percent [12] 24/18 70/21 87/22 87/24
89/2 89/4 89/7 89/11 90/2 115/19
179/21 183/25
percentage [2] 87/24 89/8
Perez [5] 99/20 123/22 195/16 195/18
196/17
perform [2] 33/6 77/19
performed [2] 72/17 72/18
performing [2] 33/7 75/3
perhaps [6] 12/24 99/23 99/23 104/12
124/2 124/18
period [49]
periods [2] 200/11 200/16
permission [4] 128/7 128/15 138/5
138/12
person [7] 9/10 9/10 94/12 158/6
168/23 196/2 196/3
person's [1] 201/4
personal [3] 75/1 106/21 121/8
personality [1] 138/20
personally [3] 58/20 58/22 120/12
persons [1] 119/15
perspective [7] 31/7 54/6 54/8 54/16
55/17 82/23 130/10
perspectives [1] 31/6
pertinent [1] 130/5
petty [1] 50/10
phase [1] 144/5
phase II [1] 144/5
phases [1] 142/5
phone [17] 10/4 11/24 11/25 12/9
28/22 53/23 98/14 106/17 112/8 112/12
112/16 113/24 114/7 127/25 128/1
128/2 171/13
phonetic [1] 90/2
phoning [1] 112/14
photograph [2] 51/8 52/11
photographs [5] 52/13 103/10 168/25
169/3 169/13
photos [8] 103/16 103/19 103/22 104/1
108/18 108/21 149/23 154/15
Photoshopped [1] 110/3
physical [2] 118/3 125/5
physically [3] 89/19 92/4 141/4
picked [1] 106/17
picture [4] 51/8 104/14 104/15 104/22
pictures [17] 51/12 52/4 63/4 100/18
104/10 104/16 109/2 140/10 140/17
140/20 142/2 142/7 142/18 142/19
149/1 150/22 168/25
place [4] 5/20 25/4 171/7 198/11
Plaintiff [2] 1/6 1/14
plaintiffs [2] 72/19 73/13

plan [1] 57/2


planned [4] 28/10 98/20 121/14 122/3
plans [1] 119/16
plant [4] 121/15 122/3 125/11 132/3
plastic [1] 53/2
plausible [1] 71/7
play [2] 65/23 173/15
player [2] 60/5 60/9
plays [1] 60/10
plea [1] 3/9
plus [1] 201/18
point [49]
pointed [4] 10/6 80/1 169/12 193/16
pointing [1] 28/25
Polan [3] 68/2 68/4 68/5
policies [1] 79/3
policy [8] 68/7 82/23 83/17 84/1 84/4
84/23 119/5 119/7
political [10] 118/3 119/15 119/19
119/20 123/19 125/21 126/1 128/17
139/5 173/7
politically [1] 78/13
politician [1] 106/22
politicians [2] 105/6 106/11
polling [5] 4/1 43/5 102/20 102/23
148/10
pop [1] 89/16
popped [1] 89/15
population [1] 122/15
Port [5] 144/2 144/4 144/10 154/1
169/3
Port-au-Prince [5] 144/2 144/4 144/10
154/1 169/3
portion [1] 122/15
position [5] 56/13 61/15 62/5 72/6
72/14
positive [7] 10/1 14/13 105/8 109/1
138/2 199/24 199/25
positively [2] 107/2 107/12
potential [1] 144/8
potentially [1] 178/8
Potomac [1] 90/13
preceding [1] 48/1
precluding [1] 5/25
preliminary [2] 72/4 153/6
prepare [3] 30/5 53/21 136/1
prepared [6] 7/9 135/16 135/24 157/10
157/18 166/4
prescription [1] 66/6
presence [13] 3/25 4/6 42/2 43/4 43/10
101/5 102/19 102/22 103/2 147/3 148/9
148/15 203/2
present [11] 2/4 2/4 42/16 42/16 56/7
102/4 102/4 147/18 147/18 171/20
196/16
presentation [4] 65/14 195/5 197/8
200/14
presented [3] 28/21 66/3 90/1
presenting [2] 65/21 84/24
president [19] 56/25 60/14 60/17 63/18
67/10 68/5 71/21 99/13 99/15 100/10
100/19 106/11 120/11 120/14 122/11
123/21 123/21 159/15 189/16
President Clinton [3] 63/18 120/14
122/11
President Clinton's [1] 67/10
President Obama [2] 60/14 123/21
president's [1] 106/13
presidential [2] 93/16 123/20

Case 1:12-cr-20901-WPD Document 195 Entered on FLSD Docket 10/29/2013 Page 218 of218
222
properties [1] 145/11
property [2] 118/12 132/3
press [11] 127/10 127/11 127/13
proposal [2] 68/21 69/16
127/22 128/5 128/6 128/12 128/13
propose [1] 2/13
128/23 129/1 129/5
proposed [4] 28/13 68/16 69/21 179/14
pressure [1] 128/17
proprietary [2] 178/18 178/25
Preval [1] 100/11
prosecutor [8] 79/16 80/1 82/25
Preval's [1] 100/15
103/18 129/13 132/14 134/24 139/10
price [1] 72/22
prosecutors [1] 174/13
Pricewaterhouse [2] 65/11 96/22
protect [1] 53/2
primarily [2] 176/9 176/10
proud [1] 78/22
Prince [5] 144/2 144/4 144/10 154/1
provide [12] 5/15 21/3 35/14 48/22
169/3
77/18 79/10 84/17 95/16 120/23 123/9
principal [1] 202/12
125/22 165/12
principle [1] 135/12
provided [23] 4/24 6/22 7/2 7/18 9/13
principles [4] 73/1 135/17 135/25
13/22 37/16 38/1 38/19 39/10 39/15
136/3
39/16 47/17 52/14 64/8 64/14 81/23
private [3] 56/16 57/4 145/6
95/15 121/10 126/24 162/25 166/19
pro [22] 7/6 7/9 17/8 44/10 46/11
172/20
129/15 129/22 130/3 130/4 130/7 130/8 providing [5] 5/11 69/24 78/25 97/23
130/10 130/19 135/18 136/4 165/21
195/3
165/23 165/24 166/4 166/10 189/18
provision [1] 32/5
197/17
provisions [1] 32/2
pro forma [21] 7/6 7/9 17/8 46/11
publish [1] 51/24
129/15 129/22 130/3 130/4 130/7 130/8 pull [4] 149/6 155/21 162/16 175/1
130/10 130/19 135/18 136/4 165/21
pulling [2] 40/20 139/3
165/23 165/24 166/4 166/10 189/18
purchase [2] 27/2 121/20
197/17
purportedly [2] 10/24 11/3
pro formas [1] 44/10
purposes [4] 27/13 47/15 47/19 91/18
problem [6] 97/5 141/3 145/5 145/6
pursuing [1] 65/22
150/10 173/18
pushing [4] 11/11 78/4 78/9 139/2
problems [5] 17/18 17/20 19/12 141/12
Q
172/22
procedures [2] 75/3 79/3
qualitative [1] 31/7
proceed [4] 4/14 12/20 12/22 180/8
quantitative [2] 31/8 31/10
proceedings [5] 1/11 1/24 50/1 203/24 quarter [6] 7/15 7/24 8/4 101/6 198/24
204/21
199/4
process [11] 12/23 57/25 58/8 77/12
quarter-ended [1] 198/24
77/14 77/16 77/17 78/23 81/14 109/9
quarterly [5] 170/12 184/7 184/10
145/20
184/11 184/14
processing [2] 164/25 167/12
quarters [1] 26/11
procuring [1] 79/14
question [34] 9/5 13/4 18/21 32/7 40/6
52/19 52/20 54/12 54/15 55/15 69/16
produce [6] 12/21 80/4 82/11 145/13
179/17 179/17
77/16 81/25 82/7 82/25 105/16 105/21
107/5 109/4 110/6 111/18 118/14
produced [4] 1/25 110/25 167/10
167/11
118/18 118/20 123/3 134/22 141/11
producing [4] 94/3 94/7 133/24 162/10 153/7 157/21 159/8 163/23 164/23
product [9] 93/6 116/15 132/25 133/14 172/22 173/25
179/1 179/7 179/8 179/9 195/8
Question 1 [1] 81/25
profession [1] 66/5
Question 5 [1] 82/7
professional [2] 138/17 138/21
questioning [1] 137/17
profit [10] 8/3 8/4 14/19 91/11 116/10 questions [30] 20/2 28/24 29/2 53/5
117/10 124/7 133/14 134/25 163/21
54/4 56/1 83/1 91/21 93/2 93/4 111/2
114/12 127/24 157/19 158/25 163/10
profit-making [2] 133/14 134/25
163/14 163/17 165/21 170/15 170/24
profits [2] 116/18 116/19
171/1 171/2 172/4 172/6 172/17 172/20
program [4] 19/15 19/19 152/2 152/4
173/2 174/3 202/17
progress [4] 26/10 26/16 28/4 170/12
progressed [1] 161/9
quick [1] 193/12
project [64]
quicker [1] 83/9
projection [1] 90/23
quickly [8] 12/20 47/20 78/8 78/11 79/4
83/15 98/1 171/1
projections [13] 90/20 91/5 124/7
124/13 124/16 129/20 130/13 130/16
R
130/17 136/4 136/5 163/18 165/25
projects [17] 91/6 93/24 117/18 139/18 Rabin [1] 172/19
raise [1] 175/23
140/6 142/19 145/3 148/23 149/17
Ramadan [2] 29/23 30/5
149/21 150/10 151/17 151/22 162/22
ramp [1] 91/13
163/2 168/14 169/25
ramping [1] 48/18
promissory [1] 182/21
ran [1] 154/23
pronouncing [1] 88/16

rapid [4] 68/24 68/24 69/12 169/9


rapid-build [1] 169/9
Ras [2] 115/10 116/7
Ras al-Khaimah [2] 115/10 116/7
rate [1] 183/24
reached [1] 59/23
read [11] 5/20 17/3 82/14 87/8 105/12
105/12 105/16 111/24 119/21 174/22
181/21
ready [6] 4/12 102/8 147/22 174/21
174/21 203/10
realized [2] 38/17 86/1
Realty [1] 176/23
recall [51]
receipt [2] 25/18 191/14
receivable [7] 12/17 131/17 190/11
190/13 190/16 198/2 198/5
receivables [1] 197/24
receive [11] 16/15 41/17 139/3 140/20
149/1 151/21 172/16 186/9 191/19
193/3 201/18
received [38] 8/14 9/7 15/19 18/8 19/6
19/20 19/25 22/12 23/4 23/13 28/16
29/9 37/5 39/8 41/12 41/15 44/13 44/22
49/20 49/22 50/8 81/9 113/24 143/14
143/19 157/4 171/13 172/10 172/16
182/12 186/13 188/2 188/9 191/18
194/12 201/20 204/9 204/14
receiving [6] 9/6 9/18 11/10 16/21
170/25 184/21
recently [1] 94/8
reception [1] 142/8
recess [11] 41/25 42/11 42/12 101/3
101/15 101/18 147/2 147/12 147/14
202/25 203/21
recognize [18] 20/6 33/24 51/8 81/1
103/11 103/16 122/13 143/7 143/12
173/7 182/4 182/17 187/19 187/23
188/15 194/4 194/6 200/1
recognized [2] 17/17 124/21
recollect [8] 87/1 104/21 112/11
112/12 112/14 112/16 116/23 148/25
recollection [4] 92/13 105/13 105/20
112/3
recommendation [2] 107/3 119/25
recommended [2] 126/12 126/14
recommending [2] 113/10 119/5
reconcile [2] 17/19 155/9
reconstruct [1] 151/23
reconstruction [1] 57/2
record [17] 2/3 42/15 87/4 102/3
139/15 143/1 146/17 147/17 156/1
163/5 163/7 163/9 174/2 176/1 182/2
183/1 204/21
recorded [1] 1/24
records [2] 18/13 156/23
recovery [2] 119/10 119/22
Redirect [3] 163/11 163/12 204/4
refer [1] 93/3
referenced [3] 14/22 20/15 37/11
referred [1] 167/24
referring [11] 18/5 39/24 40/9 41/1
60/1 61/9 61/19 99/19 164/14 183/1
192/6
reflect [10] 19/13 82/15 82/16 82/20
83/5 98/13 116/2 131/13 137/12 196/25
reflected [11] 7/11 8/6 41/19 45/15
130/18 188/19 190/13 190/23 191/9
197/11 200/5

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222

R
reflecting [1] 166/14
reflection [1] 183/12
reflective [1] 188/24
reflects [2] 132/3 197/1
refresh [4] 66/7 105/20 112/3 112/8
refreshes [1] 105/13
refused [1] 153/22
Reggie [1] 60/13
regional [1] 179/13
register [1] 10/15
registered [1] 48/19
regular [2] 138/16 189/8
regularly [2] 11/10 12/8
relation [1] 188/4
relationship [20] 28/17 28/18 54/7
54/10 54/17 54/25 55/19 55/20 55/21
55/23 56/2 58/15 59/13 63/18 100/10
100/14 105/24 106/21 106/24 108/19
relationships [5] 106/10 109/6 119/12
119/24 120/3
release [8] 127/10 127/11 128/5 128/6
128/12 128/13 129/1 129/5
releases [3] 127/13 127/22 128/23
relevant [1] 166/1
relief [3] 118/9 123/9 141/17
rely [2] 33/10 97/23
relying [1] 33/10
remainder [1] 11/14
remained [1] 161/9
remaining [1] 196/18
remember [26] 4/25 41/25 92/15 92/24
93/9 93/11 101/3 114/20 124/15 127/16
127/21 127/21 127/25 128/1 147/2
163/17 163/22 165/21 172/6 173/1
177/25 179/2 192/21 192/22 196/3
202/25
remembering [1] 89/15
removed [1] 47/18
rendition [3] 150/2 150/5 151/15
renditions [4] 149/23 149/24 151/10
152/2
repaid [2] 201/24 202/2
repay [1] 6/10
repayment [2] 201/18 201/21
report [29] 26/10 26/13 28/4 30/15
31/23 32/1 95/15 99/12 99/24 107/12
110/15 110/21 110/21 112/17 112/18
112/21 113/1 113/9 118/21 118/22
119/2 119/5 123/15 124/4 124/21
139/11 142/12 166/12 170/12
reporter [4] 1/21 1/21 108/7 204/24
reporting [1] 32/4
reports [2] 130/23 193/3
represent [5] 17/5 17/6 19/14 115/21
139/7
representations [5] 11/23 69/21 71/1
97/23 170/7
representative [3] 103/20 153/5 153/22
representatives [1] 104/1
represented [23] 25/14 25/15 30/7
33/12 47/13 62/24 63/11 63/13 63/16
88/24 104/3 109/1 109/24 115/17
116/17 117/13 122/11 131/11 139/24
140/16 146/4 167/18 169/2
representing [5] 30/4 98/11 107/25
116/11 135/8
represents [2] 25/19 36/10

Republic [1] 115/23


request [7] 12/1 33/15 44/8 79/8 89/14
95/14 95/14
requested [3] 26/12 39/15 44/3
requesting [3] 12/24 58/4 76/10
required [16] 26/11 30/14 31/22 32/1
89/1 89/3 89/3 90/5 105/24 127/23
136/14 136/25 137/13 166/11 184/1
184/5
requirement [1] 138/3
research [2] 95/9 95/12
resettle [1] 145/8
residential [1] 132/10
resin [1] 178/22
resins [1] 178/18
resources [2] 121/1 122/16
respectively [1] 21/12
respond [1] 122/15
responded [4] 106/8 138/22 170/25
172/4
responding [1] 158/25
response [27] 6/14 13/23 21/7 24/23
24/24 25/1 25/2 25/9 25/22 32/20 40/5
50/8 50/22 51/7 54/22 80/13 85/2 85/4
99/21 115/25 116/21 118/2 133/2 151/1
167/1 170/14 172/7
responses [2] 4/24 170/14
responsibility [1] 89/5
rest [3] 3/13 43/23 193/1
result [1] 164/15
resulted [1] 15/15
resume [4] 3/10 3/21 4/12 148/5
ret [1] 132/9
retain [1] 179/22
retainer [6] 58/3 58/6 73/23 75/22
76/10 122/4
retired [1] 99/4
revealed [2] 39/5 39/6
revenues [4] 7/22 132/20 132/22 133/5
review [10] 82/22 82/23 149/19 186/12
191/14 193/12 193/25 195/12 200/13
202/22
reviewer [1] 14/25
reviewing [2] 62/9 81/23
Richard [1] 1/17
rights [1] 84/11
rise [8] 3/23 42/4 43/2 101/8 102/17
147/5 148/7 203/6
risk [15] 73/21 74/23 74/24 75/7 124/22
124/23 125/5 125/11 125/13 125/15
125/18 125/21 126/1 126/3 126/5
risks [7] 74/19 79/15 117/25 118/13
118/21 124/22 125/14
RMR [2] 1/21 204/24
RMR-CRR [1] 204/24
road [2] 61/7 120/18
role [2] 65/23 173/15
roll [1] 183/15
roll-up [1] 183/15
rolled [3] 180/23 181/2 186/7
room [11] 1/22 3/1 42/2 63/6 103/15
103/17 103/23 104/2 104/16 147/4
159/3
routed [1] 24/20
Royal [13] 16/16 17/21 19/3 19/12 28/6
85/17 86/24 150/2 150/3 150/4 150/8
159/12 159/16
rubber [1] 120/18
ruler [1] 40/21

rundown [1] 180/18


Runs [1] 88/3
Ryan [8] 123/21 174/10 174/21 175/24
176/3 185/22 191/23 204/5

S
sake [1] 138/11
Salopek [3] 1/21 204/23 204/24
Samsonite [1] 120/22
Sanchez [3] 140/11 142/4 144/20
sat [1] 63/2
satisfied [1] 8/9
saw [25] 10/10 19/16 22/2 23/1 38/16
60/7 63/19 77/1 79/7 85/16 86/23 92/10
92/10 92/10 93/5 93/6 95/7 104/21
133/13 140/17 142/1 153/11 157/24
159/12 180/5
scanned [1] 160/3
scheduling [1] 43/23
scheduling-wise [1] 43/23
school [12] 96/20 145/2 150/2 150/4
150/8 150/11 150/19 151/11 153/9
169/3 170/10 177/6
schooled [1] 65/5
schools [1] 28/9
screen [1] 19/2
screening [1] 69/20
SE [1] 1/19
search [1] 72/16
seat [1] 2/22
second [25] 10/22 12/19 19/21 22/24
27/23 28/3 70/18 76/22 80/7 84/3 86/8
107/6 112/18 118/18 123/12 125/9
139/13 141/18 141/20 163/4 163/8
164/8 180/20 190/20 194/20
secretary [5] 71/13 86/12 104/11 106/4
120/25
section [6] 24/14 49/14 49/25 67/22
81/25 82/7
Section 1A [2] 81/25 82/7
Section 6.06 [1] 49/14
Section 6.08 [1] 49/25
Section B [1] 24/14
sections [1] 68/1
secured [1] 182/21
seeking [1] 13/9
Seikaly [1] 196/11
selling [15] 94/9 114/15 116/12 116/15
117/11 117/14 132/22 132/25 133/8
133/13 133/15 134/19 135/5 135/7
164/8
Selmore [2] 1/15 204/6
send [8] 13/3 48/25 83/17 84/15 108/21
153/7 153/8 189/11
sending [3] 16/24 143/25 157/8
sends [1] 129/10
sense [2] 98/2 130/7
sentence [2] 5/4 144/11
Senterfitt [1] 1/19
September [30] 4/21 13/2 13/15 26/13
29/20 126/21 130/22 133/6 133/16
136/6 149/12 152/8 152/25 153/8
154/12 154/13 161/12 161/18 188/18
189/2 190/8 190/17 190/25 191/12
192/14 192/14 192/15 192/16 194/18
201/6
September 16 [1] 201/6
September 23rd [1] 149/12
September 28 [1] 13/15

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222

S
September 30 [12] 26/13 126/21
130/22 133/6 133/16 136/6 188/18
189/2 190/8 190/17 190/25 191/12
September 6 [1] 194/18
September 8 [1] 4/21
September, [2] 194/8 200/22
September, 2010 [2] 194/8 200/22
Serenity [1] 88/15
series [1] 73/17
serious [1] 99/18
serve [2] 3/5 191/23
served [1] 123/19
service [2] 35/11 37/25
services [16] 18/1 18/11 18/12 21/11
22/8 23/9 25/4 26/2 26/3 26/6 33/19
37/4 37/7 44/7 44/14 45/21
session [1] 43/20
settled [1] 73/13
settlement [1] 94/23
seven [1] 158/19
Seventeen [1] 199/5
shape [1] 191/17
share [1] 72/22
shared [1] 71/17
shareholders [1] 30/8
shareholding [2] 66/3 90/6
shares [7] 70/21 73/6 87/19 87/20
87/21 88/13 197/2
sharing [2] 116/18 116/19
Sharpstein [22] 1/17 100/25 102/8
102/22 103/3 103/24 146/19 147/22
148/17 163/14 163/20 164/22 165/15
166/21 168/14 168/25 169/12 169/25
172/22 182/1 202/18 204/4
Sharpstein's [2] 170/15 172/4
sheet [13] 7/6 13/18 14/4 92/22 112/7
129/11 130/3 187/24 188/17 188/24
189/4 189/6 190/14
sheets [4] 7/12 129/14 188/1 197/6
shelter [1] 53/2
shelters [3] 152/21 152/25 153/9
shepherd [1] 84/18
shifting [1] 25/15
ship [7] 80/5 82/11 100/8 120/24
133/25 135/6 162/11
shipment [6] 12/5 68/24 108/1 108/2
126/14 167/21
shipped [2] 122/23 167/14
shipping [5] 27/13 82/17 98/24 146/6
146/14
shopping [1] 154/2
short [2] 13/5 75/17
shortage [1] 69/10
shot [1] 19/2
shown [8] 8/17 10/10 14/9 38/21 40/9
47/15 67/17 91/11
shut [1] 70/10
sic [15] 5/25 12/18 15/10 19/5 46/3
47/15 96/6 131/8 137/2 144/6 145/18
155/9 171/2 191/23 200/16
side [4] 28/19 28/20 84/3 84/4
sidebar [2] 174/12 175/21
sides [1] 84/2
signator [2] 155/5 158/13
signatory [1] 158/15
signature [2] 14/24 15/13
signed [3] 15/19 15/24 158/7

signs [1] 84/24


sincerely [1] 9/1
Singapore [2] 108/12 120/23
single [1] 134/4
site [15] 51/13 52/15 139/24 142/4
142/5 144/2 144/3 144/4 144/6 144/12
144/15 144/16 152/14 153/6 173/21
situation [4] 5/23 5/23 105/5 173/16
situations [3] 56/15 59/5 125/8
six million [2] 168/10 168/12
slightly [1] 40/22
slowly [1] 56/1
small [5] 57/12 68/5 90/6 90/25 136/20
Smith [12] 49/7 50/8 67/13 68/9 69/4
137/3 150/20 155/20 156/4 174/18
174/20 175/1
son [2] 99/15 106/13
sooner [1] 61/20
sound [2] 132/12 198/16
sounds [1] 100/20
soup [3] 113/21 113/23 114/6
sources [2] 79/21 95/16
South [3] 23/8 70/19 115/24
Southeast [15] 18/11 21/4 21/11 22/15
23/20 24/21 25/5 25/20 25/21 26/2
33/19 37/4 37/7 44/7 44/14
Southeast, [1] 23/19
Southeast, LLC [1] 23/19
SOUTHERN [1] 1/2
space [6] 53/4 99/6 100/8 108/3 108/13
120/23
speaker [4] 11/16 104/11 104/22 105/4
specialty [1] 177/8
specific [16] 47/15 79/19 83/1 83/2
112/16 128/1 154/22 157/19 157/21
168/17 172/5 176/15 187/9 189/4
189/15 196/20
spelling [1] 176/2
spend [1] 175/17
spent [5] 92/8 93/12 150/14 163/1
170/7
split [1] 57/2
spoke [2] 59/25 112/6
spoken [1] 53/16
sponsor [5] 70/2 70/17 84/23 85/6
95/15
sponsors [2] 89/4 110/19
sporadic [1] 139/1
spot [4] 41/21 100/24 146/18 171/24
spring [2] 33/7 169/7
stability [1] 64/24
stage [2] 165/6 165/7
stake [1] 87/12
staking [1] 201/2
stamped [3] 190/20 191/4 196/21
stand [4] 3/12 3/21 148/5 174/16
standpoint [1] 9/19
STANLEY [1] 1/8
star [1] 90/10
start-up [2] 91/12 164/3
state [10] 52/11 63/3 71/13 106/4
120/25 121/1 121/6 121/10 176/1 176/9
statement [43]
statements [61]
STATES [5] 1/1 1/5 1/12 1/22 174/10
Steers [9] 1/14 4/14 41/21 43/24 107/1
107/9 156/17 204/3 204/4
stenography [1] 1/24
step [2] 151/6 174/5

steps [1] 145/21


Steven [2] 100/2 120/21
stock [7] 7/9 73/6 73/7 88/13 90/16
154/14 158/12
stone [1] 142/8
stood [1] 134/24
stop [3] 12/5 27/7 111/2
Street [1] 1/16
strong [6] 70/23 71/10 71/24 119/11
120/3 132/14
stronger [1] 178/19
structural [9] 24/21 27/13 68/18 80/5
82/11 82/17 120/21 126/15 168/21
structure [2] 117/4 142/8
structures [2] 140/15 179/18
sturdier [1] 178/19
subcontractor [1] 19/19
subcontractors [1] 140/1
submitted [1] 22/1
subs [1] 29/21
subsequent [2] 52/15 72/18
subsidiaries [4] 117/5 185/13 186/14
193/4
substantial [2] 57/19 132/7
substantiate [2] 35/23 137/8
success [1] 165/10
successful [6] 37/16 58/15 118/17
123/24 124/3 135/4
sudden [1] 33/11
sued [1] 72/20
suffer [1] 91/7
suffered [1] 164/24
sufficient [3] 6/9 11/12 75/2
suggested [2] 80/12 83/2
suit [2] 72/5 185/10
suits [1] 73/8
sum [1] 180/25
summarize [2] 79/22 84/14
summary [4] 26/16 34/17 36/19 90/1
summer [1] 169/8
superiors [7] 61/24 112/21 113/1 113/2
119/3 119/18 123/15
supermarket [9] 140/18 142/6 144/5
153/18 153/20 154/1 169/4 169/13
169/16
supermarkets [1] 169/23
supervisor [1] 62/8
supervisors [3] 62/6 70/25 119/17
supplied [1] 11/12
support [9] 22/1 22/16 24/9 26/11
119/10 119/19 119/22 120/13 173/13
supported [2] 23/25 37/12
supporting [1] 165/11
surprise [1] 91/12
surrounding [1] 18/3
suspect [1] 58/24
suspicions [1] 55/23
suspicious [8] 18/17 18/19 28/20
154/13 157/1 157/16 159/11 159/22
Sustain [7] 11/17 18/22 20/12 29/6
50/17 104/8 185/20
sustained [1] 104/18
Suzanne [3] 51/12 52/14 61/22
switch [2] 70/11 155/19
SWORN [1] 175/24
system [5] 59/9 145/15 145/18 146/2
146/11

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222
109/8 124/4 128/16 129/22 132/13
134/23 134/25 136/7 138/4 139/9 143/8
table [1] 196/22
145/21 162/16 179/7 203/9
take [38] 16/18 41/22 41/25 43/15
third-party [2] 16/23 47/18
50/12 50/13 52/4 63/23 63/24 69/22
Thirty [1] 158/19
69/23 70/6 70/7 81/1 82/6 103/10
Thirty-seven [1] 158/19
111/23 113/20 114/2 125/15 125/21
thought [20] 8/12 17/15 20/22 39/1
133/3 133/5 142/18 143/7 146/18
66/15 78/10 85/16 85/18 85/22 122/1
146/22 147/1 149/3 149/13 149/15
130/1 134/18 136/11 158/11 173/19
149/24 149/24 159/9 160/1 161/15
174/17 178/7 178/8 179/8 198/15
171/7 197/4
thousand [3] 57/25 184/19 199/5
taken [9] 42/12 51/13 52/13 52/14
threatened [1] 145/7
101/18 115/15 142/20 146/14 147/14
three-acre [1] 144/4
takes [3] 78/23 126/3 137/7
thriving [5] 132/15 133/14 134/19
talk [29] 9/22 30/11 30/24 31/5 37/10
135/1 135/2
40/24 55/10 62/10 63/7 67/25 85/17
throw [1] 67/9
86/10 86/24 89/20 92/20 94/14 95/8
Thursday [1] 149/12
106/25 111/8 120/14 127/18 137/25
tie [1] 185/10
138/7 138/24 145/2 171/10 171/17
till [1] 43/16
171/21 193/9
Tim [2] 32/19 137/19
talked [29] 30/25 53/16 54/1 55/16
time [120]
57/24 63/4 73/3 81/20 85/23 89/22
times [6] 12/10 28/22 104/25 136/19
90/19 94/16 103/17 106/10 124/4 131/6 138/17 155/14
138/16 139/9 139/10 145/20 150/3
timing [1] 127/15
152/3 155/15 156/10 156/14 156/17
title [5] 64/8 145/6 145/14 145/16
157/22 161/11 162/7
189/15
talking [22] 4/20 4/24 31/2 37/11 39/18 TOLL [121]
57/20 58/3 68/25 70/14 70/17 71/12
Toll's [8] 2/4 6/14 25/22 42/16 102/4
71/24 103/25 110/13 111/5 114/18
147/18 197/8 200/14
127/21 128/25 148/22 155/10 161/4
tonight [1] 175/8
161/10
top [11] 7/5 12/12 22/4 23/16 34/5 34/7
talks [4] 5/19 27/23 28/4 195/8
45/3 45/17 49/1 94/8 103/25
tandem [1] 95/23
topics [1] 194/24
Tanzania [1] 115/18
total [6] 7/13 34/20 79/21 87/20 131/16
tape [1] 40/18
180/25
tax [1] 57/19
touch [1] 64/12
teachers [1] 28/10
tour [2] 93/9 93/11
team [2] 74/21 75/10
towards [1] 145/21
technical [1] 70/8
trace [2] 37/14 37/20
technically [1] 76/3
tracing [2] 39/6 39/9
techno [1] 155/23
track [3] 10/20 78/2 78/19
technologies [1] 75/18
tracking [2] 41/2 157/9
tell [45]
trade [1] 65/2
telling [8] 30/19 32/24 71/18 98/19
tragedy [1] 76/25
108/14 116/23 127/17 179/9
train [1] 173/19
Temporarily [1] 70/12
trained [1] 65/5
ten million [1] 64/18
tranches [2] 180/12 180/16
tent [2] 52/9 53/1
transaction [6] 6/8 9/19 64/20 107/17
term [10] 50/10 66/14 72/11 92/21
110/19 126/3
112/7 125/22 165/19 165/20 166/10
transactions [4] 9/16 9/21 44/11 162/9
189/17
transcript [3] 1/11 1/24 204/20
terms [8] 31/12 109/10 111/10 112/6
transfer [7] 22/12 35/21 40/11 40/24
167/2 169/19 172/23 183/23
41/1 41/5 41/10
testified [2] 53/20 113/19
transferred [2] 21/10 46/20
testify [1] 203/10
transfers [3] 162/7 162/8 162/12
testifying [1] 54/6
transparent [1] 145/19
testimony [17] 39/19 42/7 42/8 44/18 transport [1] 120/20
53/21 54/5 59/17 69/19 101/11 101/12 Treasury [1] 57/22
147/8 147/9 183/4 183/6 203/9 203/13 treaties [1] 126/3
203/14
treaty [1] 126/6
Thank [12] 4/15 13/12 42/9 43/25
Trial [1] 1/11
101/13 143/11 147/10 152/12 156/4
trick [1] 127/1
159/10 174/5 203/19
trip [1] 143/24
then-membership [1] 195/14
trouble [1] 29/20
thereafter [1] 77/5
troubles [3] 94/15 140/19 173/9
think [39] 4/12 17/14 19/7 20/21 25/9 true [5] 50/11 110/9 120/6 120/8 121/4
25/24 38/16 38/25 50/14 59/16 61/19
trust [1] 97/21
65/11 65/15 66/9 75/24 78/6 78/7 79/5 trustee [1] 85/7
83/15 84/5 87/2 106/16 107/1 108/11
truth [2] 33/4 62/17

Turkish [1] 201/2


Twelve [1] 177/14
twice [1] 13/9
two-part [1] 107/5
typ [1] 193/11
typical [2] 110/11 138/3
typically [2] 184/25 187/9
typo [1] 20/19

U
U.S [5] 1/15 57/11 61/8 70/19 119/20
U.S. [9] 56/21 57/7 57/9 57/22 84/8
110/6 119/15 125/20 173/12
U.S. companies [2] 57/7 57/9
U.S. effects [1] 84/8
U.S. government [4] 56/21 110/6
125/20 173/12
U.S. persons [1] 119/15
U.S. Treasury [1] 57/22
UAE [1] 180/4
uhm [43]
Uhm-hum [1] 56/4
Uhm-uhm [2] 56/6 56/8
ultimately [3] 24/23 25/4 179/15
um [67]
um-hum [67]
un [1] 59/6
un-American [1] 59/6
unable [1] 139/2
unaudited [13] 7/6 7/8 13/17 96/15
129/14 129/15 135/18 135/23 136/4
156/22 165/20 189/17 197/16
unclear [1] 41/19
uncontrollable [2] 125/12 125/15
underdeveloped [1] 125/4
understand [15] 3/18 5/22 11/13 31/5
40/6 42/23 54/11 75/18 83/13 92/21
102/13 148/2 148/4 167/4 203/15
understanding [12] 28/7 60/20 91/14
91/19 97/14 144/19 164/17 167/2
188/19 189/2 190/3 200/14
understands [9] 26/1 56/20 64/22
66/12 72/10 77/13 79/21 113/19 140/24
understood [16] 5/9 10/19 28/8 48/17
75/16 85/15 88/20 91/17 122/23 124/20
124/25 125/14 132/21 137/6 158/3
169/10
undertaking [1] 118/9
undetermined [1] 126/18
unfinished [1] 116/20
unfortunately [2] 60/8 171/2
union [1] 63/3
UNITED [7] 1/1 1/5 1/12 1/22 115/10
116/7 174/10
unknown [1] 125/15
unless [1] 110/2
unlikely [2] 18/14 128/1
unrelated [1] 9/21
unsigned [1] 76/22
unusual [2] 125/7 126/5
update [4] 170/11 170/12 195/1 195/3
updated [2] 8/12 80/7
upfront [1] 69/7
upset [2] 67/8 108/8
urban [1] 177/9
us [65]
USAID [1] 57/1
usual [1] 62/13
utilize [2] 80/4 82/10

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222
88/19 144/21
whoa [3] 161/3 161/3 161/3
value [1] 69/22
wife [8] 60/6 71/19 85/15 100/12
values [1] 178/20
100/13 100/14 100/15 155/6
varies [1] 77/17
William [1] 1/11
vendors [1] 25/7
willing [6] 50/12 50/13 58/7 98/4 98/6
venture [2] 90/3 115/7
121/20
venturer [1] 114/23
willingness [2] 3/5 75/13
ventures [1] 116/13
wire [1] 24/8
verified [1] 129/17
wired [1] 26/25
verify [5] 108/16 109/5 121/3 140/22
wires [3] 21/10 22/16 41/3
149/1
wise [1] 43/23
Vernelle [1] 2/25
withdraw [2] 38/11 172/14
version [7] 6/17 8/13 8/13 8/17 12/13 withdrawal [11] 35/3 36/7 36/11 37/19
12/15 12/18
39/11 39/16 45/16 45/25 46/3 46/6 47/4
versions [1] 189/8
withdrawals [10] 34/21 35/11 35/15
vessels [1] 120/24
35/24 36/18 37/25 41/15 45/21 46/18
vetted [3] 105/6 105/24 106/2
47/1
vice [3] 68/5 159/15 189/16
withdrawn [1] 36/20
video [5] 93/18 93/19 93/21 110/1
withdraws [3] 38/2 38/5 157/21
117/16
witness [8] 52/1 102/12 103/5 148/1
view [4] 28/15 28/17 69/10 191/15
174/8 174/9 175/24 204/2
Vision [11] 5/12 17/6 18/3 18/7 20/17 witnesses [2] 174/17 204/1
28/2 67/4 109/23 119/14 152/3 159/23 woman [1] 61/10
visit [9] 51/13 52/15 113/7 113/9 117/3 wondering [1] 146/13
117/3 118/24 144/7 144/16
word [4] 78/13 122/7 135/2 155/23
visited [3] 92/4 144/3 167/8
wording [1] 25/24
visits [1] 144/2
words [10] 25/25 71/4 79/19 80/1
volition [1] 138/14
82/14 114/6 119/21 130/19 136/17
volume [2] 13/3 169/5
138/8
votes [2] 87/24 89/8
work [15] 62/1 62/9 69/17 69/24 76/5
voting [3] 87/24 88/3 90/7
96/22 97/20 110/6 149/22 173/10
173/11 173/12 176/9 176/9 176/17
W
worked [10] 60/13 61/13 61/14 62/3
Wachovia [2] 17/22 22/6
65/11 100/7 108/12 139/11 152/18
wait [2] 15/17 98/2
154/21
waiting [7] 33/13 42/18 75/16 109/22 worker [1] 84/11
114/5 126/19 139/6
workers [3] 151/16 151/23 167/11
waive [5] 4/1 43/5 102/20 102/23
working [13] 58/18 64/19 69/9 69/14
148/10
79/2 80/4 81/16 81/18 82/11 144/25
waived [2] 98/8 138/6
153/4 162/23 173/8
waiver [2] 97/15 161/2
works [1] 111/10
Waksal [14] 64/1 64/4 64/21 65/15
world [21] 5/12 17/6 18/3 18/7 19/15
65/18 65/19 66/4 81/19 81/20 89/22
19/17 19/19 20/16 27/25 28/2 57/13
122/2 123/22 192/23 196/7
67/4 67/4 109/23 119/14 119/20 133/15
Waksal's [1] 65/25
134/20 152/2 152/3 159/22
walked [1] 158/5
worth [1] 134/19
wall [2] 63/4 103/17
WPD [1] 1/4
Washington [6] 66/16 70/23 71/10
write [13] 36/9 72/19 74/18 81/19 81/22
71/12 90/11 171/9
95/25 112/17 119/9 120/3 120/9 121/13
we'd [4] 2/14 110/25 188/6 194/9
125/10 130/15
wearing [1] 185/9
writes [1] 145/5
WEDNESDAY [2] 2/1 102/1
writing [3] 25/12 92/25 113/9
week [8] 12/10 13/9 43/23 53/24 76/16 writing's [1] 90/25
99/10 108/20 161/19
written [2] 63/20 143/24
weekends [1] 79/2
wrong [1] 88/16
weeks [6] 78/21 78/24 113/22 114/9
wrongdoing [1] 73/14
123/7 129/4
wrote [14] 70/14 73/8 76/9 81/3 81/13
weight [2] 198/17 198/19
94/18 95/21 107/14 118/23 122/7
Weis [2] 85/17 159/15
124/22 137/24 160/11 160/16
well-constructed [1] 123/23
Y
Wesley [5] 99/2 107/21 108/3 120/20
196/15
year-ended [3] 190/22 191/10 198/24
Where's [1] 157/6
York [1] 176/11
whereas [2] 10/14 17/21
you'd [1] 92/24
white [15] 60/2 60/14 60/21 61/13
young [7] 81/20 137/19 137/24 137/25
61/14 62/11 62/19 62/21 62/22 62/23
138/6 138/10 138/14
71/16 78/14 100/7 128/18 185/10
YouTube [2] 110/1 110/4
who's [7] 68/4 84/19 84/24 84/25 85/14

Z
Zach [3] 64/1 64/4 122/1
Zach's [1] 89/23
Zachary [2] 81/19 81/22
zero [7] 82/6 91/2 133/11 134/7 134/14
134/14 199/16
zeroed [1] 83/1
Zip [1] 133/11