Tarkanian Bankruptcy Hearing Transcript

Case 13-20495-mkn Doc 146 Entered 05/13/14 08:50:34 Page 1 of 132
1 UNITED STATES BANKRUPTCY COURT
2 DISTRICT OF NEVADA
3 LAS VEGAS, NEVADA
4 In re: ) E-Filed: 05/09/14

DANIEL GEORGE JOHN TARKANIAN )
5 and AMY MICHELLE TARKANIAN, ) Case No.
) BK-S-13-20495-LBR
6 __________Debtors._______________) Chapter 7
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11 TRANSCRIPT OF PROCEEDINGS
OF
12 HEARING RE: MOTIONS
VOLUME 1
13 BEFORE THE HONORABLE MIKE K. NAKAGAWA
UNITED STATES BANKRUPTCY JUDGE
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Thursday, May 1, 2014
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9:30 a.m.
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A.M. SESSION
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23 Court Recorder: Helen Smith
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Proceedings recorded by electronic sound recording;
25 transcript produced by transcription service.
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1 APPEARANCES:
2 For Debtor DUANE H. GILLMAN, ESQ.

Daniel Tarkanian: Durham, Jones & Pinegar
3 111 East Broadway
Suite 900
4 Salt Lake City, UT 84110
5 TIMOTHY S. CORY, ESQ.

Durham, Jones & Pinegar
6 10785 West Twain Avenue
Suite 200
7 Las Vegas, Nevada 89135
8 For Debtor MATTHEW C. ZIRZOW, ESQ.

Amy Tarkanian: Larson & Zirzow
9 810 South Casino Center Boulevard
Suite 101
10 Las Vegas, Nevada 89101
11 For Federal JANICE MOCK, ESQ.

Deposit Insurance Nossaman, LLP
12 Corporation, as 50 California Street
Receiver for Thirty-fourth Floor
13 La Jolla Bank, FSB: San Francisco, California 94111
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3 DANIEL TARKANIAN
(By Ms. Mock) 23
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1 (Court convened at 9:42:21 a.m.)
2 THE CLERK: All rise.
3 Court is now in session. The Honorable
4 Mike K. Nakagawa presiding.
5 THE COURT: Please be seated.
6 We're here on the matter of Daniel and
7 Amy Tarkanian.
8 May I have appearances for the record.
9 MR. GILLMAN: Duane Gillman and Tim Cory for
10 the debtor Daniel Tarkanian.
11 THE COURT: All right.
12 MR. ZIRZOW: Your Honor, good morning.
13 Matt Zirzow with Larson & Zirzow, counsel for
14 Amy Tarkanian.
15 THE COURT: Okay.
16 MS. MOCK: Good morning, your Honor.
18 MS. MOCK: Janice Mock on behalf of the FDIC,
19 as the receiver for La Jolla Bank.
20 THE COURT: Okay. All right.
21 Counsel, there were several recent stipulations that
22 were filed with respect to certain of the documents to
23 be admitted into evidence.
24 Were there any additional agreements reached by
25 counsel?
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1 MR. GILLMAN: Yes, your Honor.
2 THE COURT: All right. Mr. Gillman, can you
3 approach the lectern, please.
4 MR. GILLMAN: I was just --
6 MR. GILLMAN: -- going to, your Honor.
7 THE COURT: Okay. Thanks.
8 MR. GILLMAN: I wanted to bring the exhibits.
10 MR. GILLMAN: The debtor Daniel Tarkanian --
12 MR. GILLMAN: -- and I believe Amy will join in
13 it, has agreed to stipulate to admissibility of FDIC's
14 Exhibits 1 through 20.
15 I will let you speak to -- I believe the FDIC has
16 agreed to stipulate to admissibilities of
17 Daniel Tarkanian's Exhibits A, C, D, E, F, G, H, I, J,
18 K, L, M, N, but not O or P.
20 MR. GILLMAN: We met yesterday and tried to
21 conform to local rule which encourages us to go over
22 them and --
23 THE COURT: Okay.
24 MR. GILLMAN: -- not fight too much.
25 THE COURT: All right. Fair enough. All

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1 right. Then -- all right.
2 So if I understand correctly, Mr. Gillman, the only
3 item in issue amongst the exhibits that were offered by
4 the FDIC is Exhibit 21; is that right?
5 MR. GILLMAN: Correct.
6 THE COURT: Okay. All right. And then -- all
7 right.
8 Ms. Mock, the recitation as to the Exhibits A
9 through P, so the exhibits for which there is no agreed
10 admission would be, correct me, which ones?
11 MS. MOCK: B.
13 MS. MOCK: O and P.
14 THE COURT: B, O, and P? Okay.
15 MS. MOCK: And we've agreed to all the others.
16 THE COURT: All right. Then anything else,
17 Counsel, that we need?
18 I assume what's going to happen is that during the
19 course of today's testimony if these are going to be
20 offered then we'll overcome any objections at that time;
21 is that correct?
22 MR. GILLMAN: Correct.
23 MS. MOCK: Yes, your Honor.
24 MR. GILLMAN: We'll be --
25 THE COURT: Okay.

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1 MR. GILLMAN: -- laying the foundation and go
2 over them.
4 MR. ZIRZOW: And, your Honor, Amy Tarkanian
5 joins in the same stipulation.
6 THE COURT: All right. Thank you very much.
7 Okay.
8 Anything else, Counsel? All right.
9 Is there anything in the way of an opening statement
10 that either side wants to make before we commence the
11 evidentiary hearing?
12 MS. MOCK: Your Honor, we are prepared to do
13 so.
14 THE COURT: All right. Then you may do so.
15 MR. GILLMAN: I would also, your Honor.
16 MS. MOCK: Good morning, your Honor.
17 THE COURT: Good morning.
18 (Colloquy not on the record.)
19 THE COURT: Can you state your name again for
20 the record.
21 MS. MOCK: Certainly.
23 MS. MOCK: Janice Mock on behalf of the FDIC --
25 MS. MOCK: -- as the receiver for

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1 La Jolla Bank.
2 Your Honor, though I am loath to use a cliche, I
3 feel compelled to do so.
5 MS. MOCK: As probably with all of your cases,
6 you know there are two sides to every story.
7 THE COURT: Right.
8 MS. MOCK: And today you are going to be
9 presented with a lot of evidence throughout the day that
10 picture two sides to a story of these debtors and of the
11 transaction that is the subject of this dispute.
12 My esteemed opposing counsel, Mr. Gillman, who I've
13 had the pleasure of working with, actually, and it's
14 been a pleasure to work with him, is a very good
15 storyteller.
16 And he is going to put on a case of Daniel and
17 Amy Tarkanian, specifically Danny Tarkanian the family
18 man who is very devoted to his father Jerry who is a
19 beloved basketball player -- or basketball coach in the
20 state of Nevada who, unfortunately, now is quite elderly
21 and not doing well in his later years.
22 They live close by as neighbors, and the picture
23 that will be painted for you is one of a very close-knit
24 family where they want to stay in their home that's near
25 Jerry to be able to take care of him in his elderly

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1 years.
2 There's another side to Danny Tarkanian also that
3 you're going to hear about today and that is
4 Daniel Tarkanian the businessman.
5 He is a real estate professional. He is an
6 investor. He is a developer. He is a licensed
7 attorney, and he's a very shrewd businessman.
8 He runs all of the family businesses. He makes all
9 the decisions about them, family businesses, family
10 trusts.
11 He has signatory authority on all of the bank
12 accounts, and he has devised a way where he can actually
13 move money between the accounts in a way that works best
14 for him sometimes resulting in nontaxable income because
15 he characterizes things as loans without any support.
16 He characterizes things in a way that keeps it under
17 the radar from other banks that are monitoring the
18 transactions that are going on.
19 And, generally, he has figured out a way to
20 extinguish a $400,000 account receivable of his that was
21 subject to attachment by the FDIC just a few weeks after
22 they had won a 17 -- or almost $17,000,000 judgment
23 against him.
24 We have the burden in this case because the FDIC has
25 objected to the homestead exemption where they have

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1 asked for $202,000 in exemption on their homestead.
2 In fact, your Honor, they wouldn't have any
3 exemption at all but for the $400,000 transfer that took
4 place just a few weeks after the judgment had been
5 entered against them.
6 Up until that point, they had exactly zero equity in
7 their home and had never made one principal payment.
8 The debtors are going to have to then prove to you
9 unequivocally, your Honor, whether it was more likely
10 than not that the impetus for the transfer was solely
11 the result of Danny's subjective desire to remain close
12 by in proximity to his father's home or whether perhaps
13 looking at all of the evidence there was another reason
14 for that $400,000 transfer.
15 Timing is everything, as the Court knows, and as
16 Judge Markell said in the Stanton case, the timing is a
17 fact that cannot be overcome, and the timing cannot be
18 overcome here.
19 The FDIC is seeking denial of the exemption because
20 the payment was made either to hinder the FDIC, delay
21 the FDIC, or fully defraud it from collecting on its
22 $16,995,000 judgment.
23 There is no dispute that the transfer was made.
24 There is no dispute that no principal payments were made
25 for the entire seven years they owned the home prior to
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1 the date of the transfer. There is no dispute as to the
2 timing of the transfer.
3 They are going to say that they needed -- now that
4 they have been challenged on the exemption, they needed
5 to come up with a reason to explain the transaction, and
6 they picked a reason that is subjective, and it's
7 difficult to disprove.
8 There are holes in that story, as you're going to
9 see today. Daniel Tarkanian says he made the transfers
10 after many discussions with his family, for example.
11 However, you're going to hear testimony from his
12 very close family members that they knew nothing about
13 the transactions before they occurred.
14 The Court is going to have to look at -- because a
15 debtor rarely admits under oath that they possessed the
16 requisite malign intent, and they are unlikely to
17 testify directly that their intent was fraudulent.
18 The Court is going to look to the badges of fraud in
19 this case to determine whether or not it was more likely
20 than not that the transfer was the result of trying to
21 protect at least the $400,000 that were then put into
22 the home equity.
23 Of those, you're going to hear that the house was
24 kept. They didn't transfer the equity and then --
25 transfer the funds and then sell the house. The

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1 transfer was not disclosed to the family members.
2 It was moved through a variety of different conduits
3 in a way that really undermines the testimony that this
4 was just a bona fide payment that Danny wanted to make
5 so that he could keep his home.
6 He went about it in a very circuitous, and at the
7 end ended up getting cashier's checks made payable to
8 the bank rather than just writing a check to the bank
9 for a principal payment. You're going to hear all of
10 that evidence.
11 You're going to hear evidence that when the judgment
12 was entered against them they had no intention of paying
13 the judgment.
14 They were not able to pay the judgment. They were
15 wholly insolvent at the time the judgment was entered
16 against them, and it was shortly after that that they
17 made the transfers.
18 We're going to ask at the end of the day that the
19 Court sustain the FDIC's objection to the homestead
20 exemption that the debtors have asked for here.
21 There may be some discussion about what the value of
22 that exemption should be. I don't think that's going to
23 be the time or place for that.
24 I think that's going to be a matter of the trustee
25 getting an appraisal of the house once a decision is

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1 rendered to determine what the debt is offset to the
2 value of the house.
3 But what I can tell you is having had zero equity in
4 the house to begin with, anything -- it would have to be
5 something over $400,000 in order for the debtors to be
6 able to be entitled to an exemption.
7 Because all of the money that they used Danny
8 himself has characterized as a repayment of a loan that
9 was owed to him by one of the family companies. He
10 didn't characterize it as any other way.
11 You're going to hear that some of the money was
12 siphoned off of life insurance policies belonging to his
13 parents.
14 Some of the money was siphoned off from other family
15 companies, but it all poured through the single-family
16 entity who Danny characterized as repaying him a loan.
17 So that money was nonexempt property from the
18 beginning, and to call it anything else is really
19 disingenuous because he admits already that it was
20 simply the repayment of the loan.
21 And, therefore, the homestead value, even if the
22 Court were to find that the homestead exemption were not
23 obtained with the intent to hinder, delay, or defraud
24 the FDIC, the value of that exemption is going to be
25 reduced to zero because it doesn't exceed the $400,000

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1 that was put into the house.
2 So that is what's going to be before the Court
3 today, and we look forward to putting on the evidence.
4 THE COURT: Okay. Thank you very much. All
5 right.
6 Mr. Gillman?
7 MR. GILLMAN: May it please the Court.
8 Duane Gillman appearing for Danny -- Daniel Tarkanian.
9 There are three reasons why the evidence that'll be
10 presented today will not sustain the FDIC's objection to
11 the exemption.
12 First, there is no intent, and it will be proved
13 there is no intent to hinder, delay, or defraud the FDIC
14 or any other creditors.
15 Second, there is no requisite increase in homestead
16 attributable to the disposition of nonexempt assets.
17 This is what Exhibit P will show and the tracing back.
18 The facts that will come out and that we will prove
19 in defense of Danny's right to claim the homestead, an
20 extraordinarily-close relationship exists between Danny
21 and his father. It traces back into their Armenian
22 heritage.
23 A heart attack happened on March 30th, 2012, that --
24 to his father -- that triggered him having to
25 concentrate on the situation of his under-water home and

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1 try to get it in a position where he could eliminate the
2 variable-rate debt that was associated with it of
3 600-plus-thousand dollars on a
4 300-and-something-thousand-dollar home.
5 His purpose was to secure the connection and protect
6 the connection with his father evidenced by the link
7 between the two houses, the walkway through the two
8 houses.
9 The other fact which is evident is the trustee has
10 chosen not to object, having reviewed the debtor's
11 testimony, having been involved in various negotiations
12 and having acquired information. The FDIC with its
13 three attorneys is going alone.
14 That doesn't change it, but the evidence will
15 establish that there simply is no intent to delay or
16 defraud. There was an intent to protect the home's
17 connection.
18 The Exhibit P demonstrates that without $220,000 of
19 loans from an insurance policy which was clearly exempt,
20 the $93,596.67 in increase in equity could not have
21 occurred.
22 Which means the second element -- or the third
23 element under the Stanton opinion -- a necessary element
24 for a 522(o) objection can't be made out with a
25 (indiscernible) the nonexempt property, you don't

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1 generate any equity, and there isn't the requisite --
2 let me quote the language -- "Homestead increase
3 attributable to disposition of nonexempt assets." They
4 can't make out that element.
5 For those three reasons, at the end of the day, you
6 will overrule the objection to the exemption and allow
7 Mr. and Mrs. Tarkanian to claim the homestead.
8 THE COURT: Okay. Thank you. All right.
9 Mr. Zirzow?
10 MR. ZIRZOW: Your Honor, I would certainly join
11 in Mr. Gillman's comments.
13 MR. ZIRZOW: And I'll try not to be
14 duplicative, but I do have a couple of preliminary
15 points in my opening remarks I'd like to make to the
16 Court.
17 I think it will also help clarify what we're here
18 today for and, more importantly, what we're not here
19 today for.
20 The FDIC in its trial brief and now in its opening
21 statement has said it seeks to challenge all
22 400,000-plus in transfers to pay down the debt on the
23 residence.
24 522(o), however, your Honor, as well as the state
25 limitation deals with the exemption only and the

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1 exemptible amount; in other words, not the entirety of
2 the allegedly-improper transactions.
3 And, granted, there may be other devices -- 548,
4 fraudulent transfer; 727, denial of discharge -- that
5 may bring into relevance the entirety of the transfer,
6 but all that is before the Court today are limitations
7 on the exemption amount.
8 The exemption being I believe $100,000 is claimed on
9 the schedules.
10 The plain language of 522 only speaks in terms of
11 limiting the debtor's interest in the property, and the
12 debtor's interest in the property is the exemption.
13 The debtor, for all practical purposes, does not
14 have an interest in the property under the terms of the
15 statute outside of that.
16 And there is a case, Willcut, 472 B.R. 88. It's a
17 Bankruptcy Appellate Panel decision from the
18 Eighth Circuit in 2012 that makes that clarification
19 that we are only dealing with the exemption amount today
20 and whether that exemption amount not the entirety of
21 the transaction is voidable.
22 With respect to -- the evidence will show that the
23 FDIC essentially likes to jump to the conclusion, the
24 easy conclusion, that given that it was collecting a
25 judgment or it had a judgment or was soon to get a

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1 judgment, any action of the debtor must have been done
2 in reaction thereto, and it's just per se fraudulent.
3 The case law, however, requires that there -- there
4 has to be something more. There has to be what one
5 Court calls extrinsic evidence of fraud, and that is
6 noticeably absent in this case.
7 The FDIC in its opening remarks said that the
8 debtors -- or, excuse me, Mr. Tarkanian engaged in a
9 circuitous transaction.
10 Actually, what happened was the money went through
11 his bank account to pay his homestead. I don't know how
12 that's circuitous. Very straight forward.
13 In fact, there is a case cited by Judge Collins just
14 two months ago involving very similar facts. It's the
15 Aarons (phonetic) case, 506 B.R. 516, Bankruptcy,
16 Northern District of Iowa, March 4th, 2014, where the
17 exact same facts occurred, debtor cashed out life
18 insurance to fund a homestead.
19 Judge Collins said, look. I understand you're
20 maximizing your exemptions here. There's nothing per se
21 improper about that. There is nothing more here other
22 than that.
23 There were some innocent failures to disclose some
24 things on schedules, but there's nothing more here, and,
25 therefore, he overruled the 522(o) objection.

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1 With respect -- the evidence will also show that of
2 the amounts paid to the homestead, it only actually
3 built up an exemption of about $100,000.
4 Why do that? Why put in 400,000 only to get a
5 $100,000 exemption?
6 If you look at the cold, hard economic reality of
7 this transaction, it wasn't a very great transaction for
8 the debtors, but it was done for other reasons.
9 In fact, the fact that it only gained -- it resulted
10 in a mild increase in the exemption speaks volumes for
11 what was truly going through the debtor's head -- excuse
12 me, Mr. Tarkanian's head -- and it cuts against any kind
13 of impropriety in doing the transaction. It speaks
14 volumes to the true intent.
15 The evidence will also show that what actually
16 happened here, that money -- when you cut right down to
17 it, what actually happened here was money was taken from
18 sources that were not immediately subject to realization
19 by the FDIC -- either it was from nondebtor property or
20 exempt property not subject to immediate execution under
21 Nevada law -- passed temporarily, much like the Aarons
22 case cited by Judge Collins, temporarily for no more
23 than two months through the debtor's account and
24 immediately used to fund a homestead.
25 How the FDIC was prejudiced by that, if you look at

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1 that transaction in its totality, which you're required
2 to do, in context, properly viewed, how was the FDIC or
3 any other creditor truly prejudiced by that?
4 As a practical matter, there was no real prejudice
5 here.
6 And then, finally, with respect to certain other
7 comments made by the FDIC, I respectfully disagree with
8 the statement by Ms. Mock of the allocation of the
9 burden of proof here.
10 As we cited numerous cases, the FDIC does have the
11 ultimate burden of persuasion here. It is the FDIC's
12 burden to prove by a preponderance of the evidence that
13 the claimed exemption was improper because, otherwise,
14 the exemption is presumptively proper.
15 Finally, Ms. Mock made a comment about valuation and
16 that, oh, we'll decide later whether the amount was
17 correct. Absolutely not.
18 We're here today, your Honor, after briefing this
19 matter. We're here today. It's the FDIC's burden to
20 show the validity and also the amount and whether the
21 amount of the exemption was improper.
22 Now, what the FDIC has done is basically relied
23 solely on the debtor's schedules and -- which are
24 admissions, granted.
25 But to the extent the FDIC does not come forward

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1 with evidence today in an appraisal form or otherwise,
2 it is not allowed later to come and say, oh, by the way,
3 we want to challenge the amount of the exemption. No.
4 We're here today on everything.
5 We're here today on the validity of the exemption
6 and the amount of the exemption, and the FDIC if it has
7 no other evidence to present on the amount then we live
8 or die, both of us, on the amounts claimed in the
9 schedules.
10 So there's no further supplementation of evidence
11 like the FDIC tried to keep the door open today in its
12 opening remarks.
13 Finally, you will hear evidence, the evidence will
14 show that Ms. Tarkanian did not have knowledge of these
15 transactions and is an innocent spouse.
16 And the reason why that matters, your Honor, is not
17 that there was anything improper going on. They have a
18 young family. They have many kids they're raising.
19 She has other things to do, and she left these
20 transactions, as is not uncommon in any familial
21 relationship, to her spouse who she trusted implicitly.
22 There is nothing untoward about that like Ms. Mock
23 suggested in her opening remarks. It's just rather how
24 the family unit operated.
25 And even if, even if, as a secondary argument, in

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1 the alternative, for some unknown reason this Court does
2 sustain the objection of the FDIC, she is still entitled
3 as a matter of equity to a one-half interest in her
4 exemption of the homestead.
5 Thank you, your Honor.
6 THE COURT: Okay. Thank you. All right.
7 Ms. Mock, are you ready to proceed?
8 MS. MOCK: We are, your Honor.
9 THE COURT: Okay. Why don't you call your
10 first witness.
11 MS. MOCK: Thank you, your Honor.
12 The FDIC would call Daniel Tarkanian.
13 THE CLERK: If you can please remain standing
14 and raise your right hand.
15 Thereupon --
16 DANIEL TARKANIAN
17 was called as a witness by the creditor, and having been
18 first duly sworn, testified as follows:
19 THE WITNESS: I do.
20 THE CLERK: Thank you.
21 Please have a seat and if you could please state
22 your name for the record.
23 THE WITNESS: Okay. Danny Tarkanian.
25 DIRECT EXAMINATION
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1 BY MS. MOCK:
2 Q. Good morning, Mr. Tarkanian. We've met before,
3 Janice Mock.
4 I'm going to just ask you a few questions today
5 related to the Campbell Circle property which you have
6 claimed as the homestead in your bankruptcy case.
7 All right?
8 A. Sure.
9 Q. As I understand it, you bought the home in 2005; is
10 that right?
11 A. Yes.
12 Q. It's about a six-bedroom, five-bath,
13 4,234-square-foot home, is it not?
14 A. Five bedrooms. Two were added on after the
15 purchase. One bath, two -- four baths. One added on
16 after the purchase.
17 Q. So does that mean it's four or five --
18 A. The baths?
19 Q. -- today? Yes, sir.
20 A. The -- the baths, there's one, two -- there's five
21 baths, four before and one was after.
22 Q. All right. And you paid about $810,000 for the
23 house; is that right?
24 A. Yes.
25 Q. If I could have you -- do you have a copy of all of

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1 the exhibits in front of you there?
2 A. I believe.
3 Q. There should be a set that contains numbers and a
4 set that contains letters. If you could look at the set
5 that contains numbers, I would --
6 A. Okay.
7 Q. -- appreciate it.
8 If you could turn to Exhibit No. 6.
9 A. Yes.
10 Q. Excuse me one second. I beg your pardon.
11 If you could turn to Exhibit No. 4, please, the
12 Chicago Title Company document.
13 A. Okay.
14 MS. MOCK: And, your Honor, I believe we have
15 stipulated to Exhibit No. 4.
16 THE COURT: I believe it is admitted into
17 evidence.
18 BY MS. MOCK:
19 Q. Looking at the first page of Exhibit No. 4, at the
20 top it's titled page 2 of 16.
21 Do you see that?
22 A. Yes.
23 Q. And in Exhibit No. 4 it identifies six bedrooms,
24 five baths, a 4,234 square-foot home; is that correct?
25 A. Yes.
26
1 Q. And you don't dispute that that is correct, do you?
2 A. I think one of the baths we -- I mean, one of the
3 bedrooms we refer to as an office, so I think that's
4 where the difference is.
5 Q. All right. Mr. Tarkanian, when you bought the home,
6 you purchased it in your own name as your own separate
7 property; is that right?
8 A. Yes.
9 Q. And then later you transferred the house into the
10 name of you and your wife together; is that right?
11 A. Yes.
12 Q. And then you both transferred the house into a trust
13 at the suggestion of one of your estate planners; is
14 that correct?
15 A. Yes.
16 Q. Now, of the $810,000 purchase price that you paid
17 for the home back in 2005, you borrowed $648,000 after
18 putting down a down payment of about 162,000; is that
19 correct?
20 A. That sounds right.
21 Q. Okay. And you obtained the $162,000 down payment
22 from the sale of your prior home; is that right?
23 A. Yes.
24 Q. If you could look at the loan application exhibit
25 which I believe is Exhibit No. 2.

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1 MS. MOCK: Your Honor, we've stipulated to
2 Exhibit No. 2.
4 BY MS. MOCK:
5 Q. Mr. Tarkanian, you applied for a $648,000 30-year
6 adjustable-rate mortgage, correct?
7 A. Yes.
8 Q. All right. And when you applied for the loan, you
9 believed it was I believe you testified an interest-only
10 loan.
11 And that was because you were going to have less of
12 a mortgage payment than if you were making a principal
13 and interest payment together; is that right?
14 A. Yes.
15 Q. Okay. And when you signed the application that is
16 marked as Exhibit 2 on May the 15th, you understood that
17 you were applying for a loan at the time where your
18 proposed monthly mortgage payment would be in the
19 neighborhood of $3,400; is that right?
20 A. Yes.
21 Q. All right. The funds that you used to pay the
22 mortgage came from a receivable that you claim was owed
23 to you by the -- let me start over.
24 The funds that you used in the transfer that we are
25 going to talk about later, the $400,000, that came from

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1 a receivable that you claim was owed to you by a company
2 called JAMD.
3 MS. MOCK: And, your Honor, the parties refer
4 to it as JAMD. It is spelled J-A-M-D --
6 MS. MOCK: -- LLC.
7 BY MS. MOCK:
8 Q. Is that right?
9 A. Yes.
10 Q. All right. And when you transferred the funds to
11 your mortgage holder, you intended that the payments be
12 applied toward the principal on your loan; is that
13 correct?
14 A. Yes.
15 Q. All right. And that necessarily increased the
16 equity in your home because you did not at the time have
17 any equity in your home; is that right?
18 A. The first payment would not have increased the
19 equity because we were upside down over $300,000. The
20 last two $50,000 payments would have increased the
21 equity.
22 Q. All right, Mr. Tarkanian. Up until the time that
23 you made the $400,000 transfer, you had only paid
24 interest on your loan.
25 You had never made one principal payment; is that

29
1 correct?
2 A. Yes, it is.
3 Q. All right. After you made the $400,000 payment,
4 then you actually lowered the debt that was owed to you
5 by JAMD as a result of taking that loan repayment to
6 yourself; is that right?
7 A. Yes.
8 Q. And after you made the $400,000, then you only had
9 around a $248,000 debt owed to the mortgage holder; is
10 that right?
11 A. Yes.
12 Q. So any equity that you had in your house you
13 retained because your house was valued at more than
14 $248,000 by the time you completed these transfers; is
15 that correct?
16 A. Yes.
17 Q. Okay. You did not get an appraisal done of your
18 home in July or August of 2012 when you made the
19 transfers, did you?
20 A. No.
21 Q. All you have is a tax assessor statement for that
22 time period?
23 A. Yes.
24 Q. All right. And you kept the house. You didn't turn
25 the house over to the bank or sell it or do anything

30
1 else with it. You still live in it today; is that
2 right?
3 A. Yes.
4 Q. Now, part of the payment that you made came from the
5 proceeds of your parents' life insurance policies; is
6 that right?
7 Somewhere the proceeds from your parents' life
8 insurance policies were involved in the $400,000 that
9 was paid to the mortgage company?
10 A. It was the proceeds from a Jerry and Lois Tarkanian
11 irrevocable trust which had a life insurance secured by
12 my mother and father's lives. My siblings and I were
13 the beneficiaries.
14 Q. Okay. If you could -- you took the checks from the
15 Phoenix Life policy and you deposited them into a trust
16 account that you had set up in the name of the
17 Jerry and Lois Tarkanian Irrevocable Trust; is that
18 right?
19 A. Yes.
20 Q. And you did that on July 3rd of 2012, just a few
21 days before you made the deposit into that account; is
22 that right?
23 A. I -- I'm confused by your question. Can you repeat
24 that, please.
25 Q. Sure. If you could go ahead and turn to

31
1 Exhibit No. 15.
2 MS. MOCK: Your Honor, we've stipulated to 15.
3 THE WITNESS: Okay.
4 BY MS. MOCK:
5 Q. Mr. Tarkanian, looking at the last page of
6 Exhibit 15, that is your signature, right?
7 A. Yes, it is.
8 Q. All right. And you went into Wells Fargo Bank and
9 applied to open this account on July the 2nd, 2012.
10 This is indicated in the upper right-hand corner of
11 the first page; is that right?
12 A. We had a bank account at Ameritrade for this trust,
13 and Ameritrade's sole office in Las Vegas was over 30
14 minutes away from my office.
15 So -- and we hadn't done any deposits or withdrawals
16 from this trust for, you know, a while.
17 So to -- to bring that bank account, we brought it
18 over to where the other bank accounts were for the
19 businesses which is -- was Wells Fargo.
20 Q. All right. So July 2nd, 2002 (sic), you go to
21 Wells Fargo. You open this bank account.
22 And then just a few days later on July the 9th, you
23 took the two checks that you received from Phoenix Life
24 and you deposited them into this account; is that right?
25 A. That sounds right. I don't have the dates, but

32
1 if -- if they're part of the exhibits, I -- I wouldn't
2 dispute them.
3 Q. Okay. If you'd take a look at Exhibit No. 7,
4 please.
5 A. Okay.
6 MS. MOCK: We've also stipulated to Exhibit 7,
7 your Honor.
8 THE COURT: Okay.
9 BY MS. MOCK:
10 Q. Now, we talked about these checks at your
11 deposition.
12 Do you remember that, Mr. Tarkanian?
13 A. Yes.
14 Q. And this shows, if you turn to the second and third
15 pages of Exhibit 7, these are copies of two checks that
16 you received from Phoenix Life Insurance Company for
17 $110,000 each; is that correct?
18 A. Yes.
19 Q. And they're both dated July 3rd, 2012; is that
20 right?
21 A. Yes, which was probably the date they were sent to
22 me --
23 Q. All right.
24 A. -- not when I received them.
25 Q. And the first page of Exhibit 7, that's a deposit

33
1 slip at Wells Fargo, isn't it?
2 A. Yes.
3 Q. And you walked into the bank at Wells Fargo on
4 July the 9th with these two checks totalling $220,000,
5 and you deposited them into the trust account that you
6 had just opened; is that right?
7 A. Yes.
8 Q. Okay. Now, turning to the last page of Exhibit 7,
9 this is a copy of the withdrawal slip for the very next
10 day that you walked into the bank.
11 You filled out a withdrawal slip that you signed; is
12 that right?
13 A. Yes.
14 Q. And you took out the $220,000 that you had just put
15 into the trust account; is that right?
16 A. Yes.
17 Q. Now, the reason you didn't just write yourself a
18 check directly from the trust for the $220,000 was
19 because you thought that it would have been illegal to
20 make a trust distribution to yourself; isn't that right?
21 A. Well, that was one reason. I -- the JAMD had a loan
22 that was outstanding to me that it had been repaying me
23 and my family members.
24 My family members all had loaned the JAMD money for
25 the construction of its property, and over the period of

34
1 time it was repaying those loans.
2 JAMD owed me quite a bit of money, and the loan was
3 outstanding, and this money was used to -- by JAMD to
4 borrow the money so it could repay me back the loan.
5 So there was really no reason for me to borrow money
6 from a new entity when I had another entity that already
7 owed me the money.
8 Second of all, if I was the only one taking out a
9 loan from the life insurance policies and I'm the
10 fiduciary of that life insurance trust, I think that
11 would raise some ethical issues.
12 MS. MOCK: I'm going to object that it's
13 nonresponsive.
14 BY MS. MOCK:
15 Q. Mr. Tarkanian, I ask if at minimum you believed that
16 it would have been a breach of your fiduciary duty just
17 to simply write yourself a check for $220,000 to use for
18 your mortgage rather than putting it through a business
19 called JAMD; isn't --
20 MR. ZIRZOW: Well --
21 BY MS. MOCK:
22 Q. -- that right?
23 MR. ZIRZOW: I'll object.
24 Actually, that was not her question. Her question
25 was whether it was illegal. She's changing it now to

35
1 saying whether it would be a breach of fiduciary duty.
2 THE COURT: Objection sustained.
3 Do you want to rephrase your question?
6 BY MS. MOCK:
7 Q. Isn't it true, Mr. Tarkanian, that you thought at
8 minimum it would be a breach of your fiduciary duty to
9 make a transfer to yourself to use the money to pay down
10 your home payment rather than that it would be --
11 A. I --
12 Q. -- improper for you to do that?
13 A. Well, I -- I sure think that it would raise some
14 fiduciary questions and possibly a breach, yes.
15 Q. And, in fact, you thought that that transaction to
16 write yourself a check might have been simpler but it
17 wouldn't have been legal.
18 Isn't that what you told me at your deposition?
19 A. I said it was -- I don't know what exact words. I
20 said I -- it would have been a breach of my fiduciary
21 duty and possibly illegal is what I recall.
22 MS. MOCK: Okay. I'm going to take a moment,
23 your Honor, and get --
24 THE COURT: Okay.
25 MS. MOCK: -- the original transcript if you --

36
1 THE COURT: You may.
2 MS. MOCK: -- don't mind.
3 May I approach, your Honor?
4 THE COURT: Yes, you may.
6 THE WITNESS: Thank you.
7 BY MS. MOCK:
8 Q. Mr. Tarkanian, I don't want to beat a dead horse,
9 but I do want to be sure that I clearly understand what
10 your testimony is.
11 So I'm going to ask you if you would please turn to
12 page 167 of your transcript that the -- she may have
13 handed you the June one. I apologize.
15 MS. MOCK: I apologize, your Honor. I thought
16 that the transcripts were already up there.
17 THE COURT: Okay.
18 BY MS. MOCK:
19 Q. Do you have the transcript from April 16th, 2014, in
20 front of you?
21 A. No.
22 Q. But you have the June, 2013, transcript?
23 A. Yes.
24 MS. MOCK: I apologize, your Honor.

37
2 MS. MOCK: All right. I think we have the
3 right one.
4 May I approach?
5 THE COURT: Yes, you may.
6 BY MS. MOCK:
7 Q. I'm handing you a copy of the April 16th, 2014,
8 transcript from your deposition a couple of weeks ago,
9 and I would ask that you turn to page 167.
10 Let me know when you've found it.
11 A. I have it.
12 Q. All right. And at page 167, line 1 through 5, the
13 question was, "Why did you not just take the money from
14 the trust and pay it directly to yourself rather than
15 paying it to JAMD and then having JAMD pay it to you?"
16 Your answer, "Well, that would have been a
17 distribution. That would have been a loan for me from
18 the trust."
19 To line 11, "Wouldn't the transaction have been
20 simpler, Mr. Tarkanian, simply to have the money
21 deposited into the trust account and then paid directly
22 into your account so that you could then give it to
23 Bank of America?"
24 Your answer was -- and tell me if I'm wrong,
25 Mr. Tarkanian. You said, quote, "It might have been

38
1 simpler, but it wouldn't have been legal."
2 I ask you what would have been illegal about that
3 transaction. Your answer was -- and I quote from line
4 20 -- "Because I wasn't authorized to take out loans
5 from the trust. That would have been in my opinion a
6 breach of my fiduciary duty to the members."
7 A. Yeah. Exactly.
8 Q. Well, you took the funds anyway after passing them
9 through the JAMD bank account for about 48 hours; isn't
10 that true?
11 A. No. JAMD took the funds as a loan from the
12 insurance trust which JAMD had borrowed from that
13 insurance trust on at least seven other occasions over
14 the past several years.
15 Several of those occasions were used for other
16 members of the family besides myself.
17 Q. Mr. Tarkanian, my question was you took the funds
18 into your own personal account after you passed them
20 that right?
21 A. JAMD repaid me the loan that it -- from the proceeds
22 it received from the loan from the -- the Jerry --
23 Jerry and Lois Tarkanian Irrevocable Trust.
24 MS. MOCK: I'm going to object as that's
25 nonresponsive.
39
1 BY MS. MOCK:
2 Q. Mr. Tarkanian, my question is you took the funds
3 personally into your own account after passing them
5 that right?
6 MR. GILLMAN: Your Honor, I'm going to object,
7 cumulative evidence, that she's going over and over
8 this. It needlessly wastes time.
9 And I was looking for the rule, but it's cumulative
10 evidence. She's asked it four different ways four
11 different times.
12 MS. MOCK: Your --
13 THE COURT: I'll --
14 MS. MOCK: Your Honor --
15 THE COURT: -- sustain the objection.
16 MS. MOCK: Your Honor, I was looking to the
17 time period not necessarily to the transfer.
18 BY MS. MOCK:
19 Q. Looking at Exhibit No. 8 dated -- which is your
20 $220,000 transfer from the trust to JAMD. If you could
21 take a look at that.
22 A. Okay.
23 Q. I've got the number wrong again.
25 BY MS. MOCK:
40
1 Q. Sorry. It looks like it's Exhibit No. 7.
2 A. Okay.
3 MS. MOCK: Your Honor, we've also stipulated to
4 Exhibit No. 7.
5 THE COURT: Okay.
6 BY MS. MOCK:
7 Q. Mr. Tarkanian, this is a copy of the deposit slip
8 into your personal bank account; is that right?
9 I mean -- I'm sorry.
10 A. Yeah. I --
11 Q. The $220,000 went from the trust into JAMD; is that
12 right?
13 A. I don't know. No, I don't think this went into
14 JAMD. It -- it says in a savings account. The trust
15 account is a savings account. JAMD is a checking
16 account.
17 JAMD's checking account number is 6661 at the end.
18 I remember that part. This says 5251.
19 Q. Then if you --
20 A. It looks like it's a deposit into the irrevocable
21 trust account.
22 Q. I think that's the one we were just looking at.
23 Let's look at Exhibit No. 8 which is the business
24 checking statement for JAMD dated July 1st to the 31st.
25 A. Okay.
41
1 Q. And turning to Exhibit No. 8 --
2 MS. MOCK: We've also stipulated to,
3 your Honor.
4 BY MS. MOCK:
5 Q. Turning to the last page --
6 A. Okay.
7 Q. Is this the deposit slip where you took the money
8 the next day and deposited it into JAMD? It's $225,000?
9 A. The last page is 220,000.
10 Q. That's the money from the life insurance --
11 A. Oh.
12 Q. -- is it not?
13 A. Okay. Yes. It's the wrong bank -- well, you said
14 the last page.
15 The second-to-last page is $225,000, and that is a
16 deposit into the checking account for JAMD, and 220 out
17 of that 225,000 would have came from the life -- the
18 Jerry and Lois Tarkanian Irrevocable Trust account.
19 Q. All right. So in terms of time, it was the very
20 next day that you took the money out of the trust, put
21 it into JAMD, and then withdrew the money; is that
22 correct?
23 A. Yes.
24 Q. Looking at Exhibit No. 9 --
25 MS. MOCK: Which we've also stipulated to,

42
1 your Honor.
2 BY MS. MOCK:
3 Q. This is the deposit slip into your personal bank
4 account, is that correct, for $250,000, plus the 250,000
5 from JAMD, plus another check to yourself from the
6 Tarkanian for Congress account; is that right?
7 A. Yes.
8 Q. All right. So that was July the 12th; is that
9 right?
10 A. Yes.
11 Q. Now, you've told me at your deposition that the
12 transfer was permissible because the beneficiaries of
13 the trust are the same people that own JAMD; is that
14 right?
15 A. You're asking about was it permissible for the
16 Jerry and Lois Tarkanian Irrevocable Trust to loan the
17 money to JAMD then to JAMD to repay me.
18 I said yes. I felt it was yes. It was not a breach
19 of a fiduciary duty because the owners of the trust also
20 own JAMD, so there's a mutual interest there.
21 In addition, the trust itself is an owner of JAMD,
22 so there is an interest in the trust that JAMD would be
23 able to remain solvent and survive.
24 Q. You're saying that at the time of the transfer JAMD
25 was not solvent and could not survive?

43
1 A. Well --
2 MR. GILLMAN: Objection, your Honor.
3 Mischaracterizes his testimony and harassment.
4 THE COURT: Sustained.
5 BY MS. MOCK:
6 Q. Mr. Tarkanian, isn't it true that taking money from
7 the trust was not in the best interest of the
8 beneficiaries because you have to pay back the funds
9 taken with a higher rate of interest than you might from
10 other source?
11 A. No. The interest rate is -- is wrong.
12 The interest rate -- well, there's two different
13 interest rates that we -- there was money that was
14 borrowed from two different policies in the
15 Jerry and Lois Tarkanian Irrevocable Trust.
16 His Sun Life policy, the interest rate was actually
17 very low, and when there was like I mentioned seven or
18 eight other transactions where the insurance trust lent
19 money to JAMD, it first went from the Sun Life policy
20 because that interest rate was low.
21 The Phoenix Home Life was a little bit higher, and
22 that was always the last resort.
23 Q. If you could take a look at your deposition
24 transcript from June of 2013 when you were talking about
25 this very issue at your first debtor's examination. I'd

44
1 like to turn your attention to page 51.
2 And the question at that time to you was, "As the
3 trustee, is it your discretion to make distributions
4 under the 1992 Jerry and Lois Tarkanian Irrevocable
5 Trust?"
6 And your answer was, "If it's in the best interest
7 of the beneficiaries which it would not be because you
8 would have to borrow money from the life insurance
9 policy to make a distribution, and, therefore, you'd be
10 paying an interest to those policies which are normally
11 a higher-than-normal interest rate that you could pay."
12 MR. GILLMAN: Objection.
13 BY MS. MOCK:
14 Q. Isn't that what you said in June of 2013,
15 Mr. Tarkanian?
16 MR. GILLMAN: Objection, relevance.
17 The trust is not objecting to the exemption. There
18 has been nothing pled with specificity as to any alleged
19 fraud of the trust in the objection.
20 This is a red herring. It has no relevance.
21 THE COURT: Objection overruled.
23 THE COURT: Continue.
24 THE WITNESS: Yes.
25 BY MS. MOCK:
45
1 Q. Isn't that what you said in June of 2013,
2 Mr. Tarkanian? Yes or no.
3 A. Yes.
4 Q. Okay.
5 A. And in the context of if there was money that was
6 coming directly -- a loan coming directly from a family
7 member individual where it was in a bank account where
8 you're getting less than a percentage in interest, yes,
9 the insurance trust would have been a lower -- a higher
10 interest rate.
11 But if you're borrowing the money from the bank,
12 then it would -- it -- it may or may not be.
13 Q. Well, haven't you already admitted that it would not
14 be in the best interest of the beneficiaries to take
15 money out of a life insurance trust where you have to
16 borrow from a life insurance policy?
17 Haven't you already admitted that?
18 MR. GILLMAN: Objection. That has
19 mischaracterized his prior testimony.
21 BY MS. MOCK:
22 Q. Mr. Tarkanian, could you look at page 52 of your
23 deposition transcript from June, 2013.
24 THE COURT: I'm sorry. Which page was that,
25 Ms. Mock?
46
1 MS. MOCK: Page 52.
2 THE COURT: 52? Okay.
3 MS. MOCK: June 5th, 2013.
4 BY MS. MOCK:
5 Q. And I am going to quote your statement. Tell me if
6 I'm wrong, Mr. Tarkanian.
7 You said, and I quote, "I can make a distribution if
8 it was in the best interest of the beneficiary.
9 However, it would not be in the best interest of the
10 beneficiaries to take money out of a life insurance
11 trust where you have to borrow from a life insurance
12 policy," period, closed quote.
13 Isn't that what you said in June of 2013,
14 Mr. Tarkanian?
15 A. Yes, but I was referring to if he was taking it --
16 if there is another source of income that could have
17 went into JAMD.
18 But if this was the only source of income and it was
19 needed to continue to maintain JAMD's ability to
20 survive, then, no, it wouldn't have been.
21 Q. Mr. Tarkanian, you were testifying about this exact
22 same transfer in June of 2013, were you not?
23 A. I don't recall. This was over, what, a year and a
24 half ago, but that's the truth, and that's what I'm
25 testifying today about.

47
1 Q. There has not been any other transfer of $220,000
2 from Phoenix life insurance policy through JAMD to you
3 to your mortgage holder in the last ten years, has there
4 been, Mr. Tarkanian?
5 A. No.
6 Q. It's true, isn't it, that you never actually told
7 the beneficiaries of the trust beforehand that you were
8 going to take a $220,000 draw from the trust so that you
9 could create equity in your home or pay down your home
10 mortgage.
11 Isn't that true?
12 A. It is true I did not tell them beforehand just like
13 it is true I did not tell them beforehand when JAMD had
14 borrowed money from the insurance trust the other
15 six-plus times.
16 Q. I'm just talking about this time, Mr. Tarkanian, not
17 the other six-plus times.
18 A. Well, I -- I'm referring to all seven times that
19 it's done it.
20 This is a common occurrence that had to occur --
21 that has occurred with my family, and no one's ever had
22 objection to it ever.
23 Q. How many times have you drawn down money from your
24 siblings' -- the trust that was set up for your siblings
25 to make your home mortgage payment?

48
1 A. One time.
2 Q. And that's the time that we're here talking about
3 today; is that right?
4 A. Yes, it is.
5 Q. Okay. And you didn't tell your siblings that you
6 were going to take this money to repay a so-called loan
7 to yourself, did you?
8 MR. GILLMAN: Objection, relevance. The
9 siblings are not objecting.
10 THE COURT: Overruled.
11 THE WITNESS: I did not tell them at the time
12 of the transfer.
13 MS. MOCK: Okay.
14 THE WITNESS: But I would have informed them of
15 it during our annual meeting when we discussed the
16 different business entities that I was running.
17 BY MS. MOCK:
18 Q. Mr. Tarkanian, though you have characterized the
19 $220,000 from the trust as a loan from the trust to
20 JAMD, you did not formally document it as a loan between
21 these entities, did you, other than putting a number in
22 a spreadsheet somewhere?
23 A. Well, and it's documented with our accountant in the
24 tax returns that go in each year, yes.
25 Q. You didn't do promissory notes, any kind of -- any

49
1 actual documentation other than giving numbers on a
2 spreadsheet to your accountant.
3 Am I right?
4 A. I did not do a promissory note, but the accountant
5 also had the checks, the check registers, and the bank
6 accounts.
7 So that you would have the actual Excel sheets that
8 I had. They would match it up with the check registers,
9 the bank accounts, and they reconciled it.
10 Q. Okay. So maybe I'm not asking my question clearly.
11 You didn't have any actual loan-transaction
12 documentation where one might normally document a loan
13 between one entity to another in the terms of a
14 promissory note or something similar.
15 MR. GILLMAN: Objection --
16 BY MS. MOCK:
17 Q. Is that right?
18 MR. GILLMAN: -- to the form of the question
19 calling into bear what might normally be the standard.
21 THE WITNESS: We were a close-knit family, and
22 this was being done with -- through -- within family
23 members.
24 So we may not have formally put it into a promissory
25 note, but it was something that was recorded in the

50
1 Excel sheets, provided to my accountant. My accountant
2 kept the records of them and put them on the tax
3 returns.
4 BY MS. MOCK:
5 Q. Mr. Tarkanian, you said you may not have.
6 Isn't it true that you did not document this in any
7 formal way --
8 A. No, you --
9 Q. -- other than putting it in your spreadsheets?
10 A. No, that's not true, and you mischaracterize my
11 statement.
12 I did document it on the Excel sheets as I mentioned
13 three or four times to you now. I've also stated we do
14 not have a promissory note.
15 So when --
16 Q. Okay.
17 A. -- you want to use a general term documentation, I
18 don't agree with that.
19 Q. And you were the person who decided that JAMD would
20 now owe $220,000 back to the trust instead of owing that
21 to you; isn't that right?
22 A. Actually, JAMD was -- after the transaction, JAMD
23 owed the life insurance trust over $450,000 because it
24 had already borrowed 230 or 40,000 previously that it
25 repaid my -- my -- that JAMD repaid my mother and father

51
1 for a loan it had with them.
2 Q. Okay. So your testimony is JAMD owed you money; is
3 that right?
4 A. Yes.
5 Q. And of the amount it owed you, the $220,000 that
6 went through the trust through JAMD to you, JAMD was
7 then able to reduce its payable to you by $220,000; is
8 that right?
9 A. Yes.
10 Q. And JAMD having borrowed the money from your
11 parents' irrevocable trust would now owe that money back
12 to the trust; is that right?
13 A. Yes.
14 Q. So you no longer had a receivable from JAMD for at
15 least $220,000, right?
16 A. Yes.
17 Q. Okay. You made all the management decisions and
18 operations decisions for JAMD in 2012; is that right?
19 A. Yes.
20 Q. And the daily management and major decisions on how
21 that company's money is going to be spent; is that
22 right?
23 A. Yes.
24 Q. And just to be clear, the trust, the irrevocable
25 trust, was not a judgment debtor that had had a

52
1 $16,995,000 judgment entered against it by the FDIC, was
2 it?
5 THE WITNESS: No, it was not.
6 BY MS. MOCK:
7 Q. All right. So the FDIC, then, had no right to
8 pursue the trust to collect money on its judgment
9 against you unless the trust owed you money; is that
10 right?
11 A. Yes.
12 Q. All right. Now, in your declaration that you filed
13 with the Court on March the 12th, 2014, you testified
14 under oath that you transferred the $400,000 to yourself
15 after consulting with family members.
16 Do you remember putting that in your declaration?
17 A. I don't know what the exact wording was.
18 Is it in one of these exhibits?
19 Q. Sure. Exhibit No. 1.
20 A. Okay. Which number?
21 MS. MOCK: Which we've also stipulated to,
22 your Honor.
23 BY MS. MOCK:
24 Q. Paragraph --
25 THE COURT: Okay.

53
1 BY MS. MOCK:
2 Q. -- 8.
3 A. Yes.
4 Q. So in your declaration you said, quote, "After
5 consulting with family members and nearly 18 months
6 prior to the ultimate filing of the bankruptcy, I caused
7 approximately 398,000 to be transferred toward my
8 principal residence."
9 That's what you said, right?
10 A. Yes, it is.
11 Q. But it's true that you heard your sister Jodie
12 testify about two weeks ago when you sat in her
13 deposition that no such conversation had occurred; isn't
14 that right?
15 MR. GILLMAN: Objection, hearsay.
16 THE WITNESS: No, that's not true.
18 BY MS. MOCK:
19 Q. You don't recall her testifying that he never told
20 me he was going to do that?
21 A. No, you --
23 His recollection as to what the hearsay is is not
24 relevant.

54
1 BY MS. MOCK:
2 Q. All right, Mr. Tarkanian. That's -- we'll hear from
3 your sister today.
4 As to your mother Lois who also previously
5 testified, isn't it true that she didn't know anything
6 at all about this transaction until long after the fact?
7 MR. GILLMAN: Objection, calls for speculation.
9 BY MS. MOCK:
10 Q. Mr. Tarkanian, isn't it true that your mother would
11 not have approved of taking money out of the life
12 insurance policies had she known you were going to do
13 that?
14 MR. GILLMAN: Objection, speculation.
16 MS. MOCK: Right.
17 BY MS. MOCK:
18 Q. Now, Mr. Tarkanian, the same day that you made these
19 so-called $300,000 loan repayment to yourself from JAMD,
20 you took those funds and converted them into a cashier's
21 check payable to Bank of America; is that right?
22 A. I -- yes.
23 Q. And I believe that's Exhibit No. 10.
24 A. Okay.
25 Q. Would you take a look at that.

55
1 Is that --
2 MS. MOCK: And, your Honor, we've stipulated to
3 this.
4 THE COURT: Okay.
5 BY MS. MOCK:
6 Q. Mr. Tarkanian, Exhibit No. 10 is a copy of the
7 withdrawal slip that you filled out when you went into
8 Wells Fargo Bank and you withdrew $300,000 in cash and
9 you turned it into a cashier's check payable to
10 Bank of America; is that right?
11 A. Yes.
12 Q. And on the face of the cashier's check, it is noted
13 for Danny Tarkanian for a principal reduction; is that
14 right?
15 A. Yes.
16 Q. Now, looking back at your declaration, which is
17 Exhibit No. 1, if you could turn to page 33,
18 paragraph 14.
19 I'm sorry. The page number at the top is 33, I
20 guess the filing number, but paragraph 14.
21 You talk about the source of the funds for the
22 $300,000 first payment.
23 A. Yes.
24 Q. And just to be clear, you made three payments to
25 Bank of America, is that right, one for 300,000, one for

56
1 50,000, and then one for 50,000. Is that correct?
2 A. Yes.
3 Q. So we're talking about a total of $400,000 in
4 payments, right?
5 A. Yes.
6 Q. Okay. Well, right now I want to focus you on the
7 first payment of $300,000.
8 So looking in paragraph 14, you say the first
9 payment of 300 came from $50,000 I had access to, and
10 the remaining 250 came from repayment of a loan from an
11 entity called JAMD.
12 Do you see that?
13 A. Yes.
14 Q. The $50,000 that you're referring to here, that was
15 already in your personal account, and that was not a
16 so-called loan repayment from JAMD, was it?
17 MR. GILLMAN: Objection, compound.
18 There are two parts to this. It ought to be broken
19 up.
20 THE COURT: Well, sustained.
21 Can you break it up, Ms. Mock.
22 MS. MOCK: Sure, your Honor.
24 BY MS. MOCK:
25 Q. I'm just looking at your paragraph 14 --

57
1 THE COURT: Okay.
2 BY MS. MOCK:
3 Q. -- Mr. Tarkanian.
4 You made a first payment of $300,000, right?
5 A. Yes.
6 Q. And in explaining to the Court where that money came
7 from, you said that the 250 came from repayment of a
8 loan that was owed to you by JAMD, right?
9 A. Yes.
10 Q. Therefore, reducing the receivable that JAMD owed to
11 you, right?
12 A. Yes.
13 Q. And that the other $50,000, you only say I had
14 access to it.
15 A. Yes.
17 That wasn't repayment of a loan, was it --
18 A. Yes, it --
19 Q. -- that 50,000?
20 A. Yes, it was.
21 Q. Why didn't you say that in your paragraph 14?
22 A. Because I didn't have the documentation in front of
23 me before I wrote this exhibit. I didn't know where the
24 50,000 originated from.
25 But during our deposition, you provided me

58
1 documentation that showed a deposit that I had from the
2 Danny Tarkanian congressional account that said it was a
3 repayment for a loan.
4 And that amount was 53,000 along with the 250,000
5 from JAMD which was the 303,000 that was actually
6 deposited into the account that day.
7 Q. Okay. Just so I'm clear, Mr. Tarkanian, I'm looking
8 at your deposition transcript from last week, April the
9 16th, on page 157. If you could turn there, please.
10 A. Okay. Okay.
11 Q. I had remembered asking you about this exact thing,
12 and looking at line 20 I ask -- the question was, "What
13 was the money? What did you mean by money that you had
14 access to?"
15 Answer, "It didn't come from JAMD, so it had to come
16 from my personal account. I don't recall where exactly
17 it came from, so that's the way I worded it.
18 You guys, your motion had shown documentation, and
19 then I went back to check, and there was a $250,000 loan
20 repayment to JAMD -- from JAMD to myself, so I assumed
21 the last 50,000 came from funds that I had. That's the
22 only other way I could have paid that down."
23 Now, that was your testimony just a week ago, right?
24 A. Sure, and it's my --
25 Q. And now today --

59
1 A. -- testimony today.
2 Q. And your testimony today is now that is still not a
3 loan repayment from JAMD, right?
4 A. You -- yeah. You didn't ask if it was a loan
5 repayment from JAMD. You asked if it was a loan
6 repayment.
7 It's a loan repayment from the congressional
8 account, the congressional campaign account.
9 Q. Okay. So that was $50,000 that you had from a check
10 you got from your campaign fund.
11 A. It was 50 --
13 A. The -- I got -- received a check for repayment of --
14 of money I had lent to my congressional campaign. It
15 was 53,000-and-some dollars.
16 It was deposited the same day as the 250,000, and I
17 didn't see that until after our deposition when you
18 provided these documentation.
19 Q. Taking a look at Exhibit No. 13 --
21 BY MS. MOCK:
22 Q. Following this $300,000 payment which was around
23 July the 9th, a few weeks later you made two more
24 payments of $50,000 each; is that correct?
25 A. Well, six weeks later it looks -- it looks like the

60
1 first one was.
2 MS. MOCK: All right. I'm --
3 THE WITNESS: And --
4 MS. MOCK: -- looking at --
5 THE WITNESS: And --
6 MS. MOCK: -- Exhibit No. 13, your Honor.
7 These have been stipulated to.
8 BY MS. MOCK:
9 Q. Mr. Tarkanian, these are copies of the three
10 cashier's checks that you sent to Bank of America; is
11 that right?
12 One on July the 12th for 300,000, one on August 22nd
13 for 50,000, and one on August 3rd for 50,000; is that
14 right?
15 A. Yes.
16 Q. Okay. That first payment -- I realize these are in
17 reverse order here. I'm looking at the cashier's check
18 for August 3rd for $50,000.
19 A. Okay.
20 Q. That first payment of $50,000, that money actually
21 came from originally the Tarkanian Basketball Academy;
22 is that right?
23 A. Yes.
24 Q. And that's a family business that you all have that
25 is a nonprofit center that provides basketball camps and

61
1 workshops for youth; is that right?
2 A. Your first part is wrong, no. The second part is
3 right, yes.
4 Q. Okay. It is a nonprofit entity; is that right?
5 A. Yes, it is.
6 Q. And you run the nonprofit entity, do you not?
7 A. Yes, I do.
8 Q. You make financial decisions for it, right, don't --
9 A. Yes.
10 Q. -- you?
11 A. Yes, I do.
12 Q. And you decided that the Tarkanian Basketball
13 Academy should give $50,000 to JAMD which then you
14 turned around and withdrew and gave to your mortgage
15 holder; is that right?
16 MR. GILLMAN: Objection to the form of the
17 question.
18 There is no testimony before the Court that he gave
19 it from the --
21 Can you rephrase it, Ms. Mock.
22 MS. MOCK: Certainly, your Honor.
24 BY MS. MOCK:
25 Q. Looking at Exhibit No. 11, Mr. Tarkanian --

62
1 MS. MOCK: This has been stipulated to,
2 your Honor.
3 THE COURT: Okay.
4 BY MS. MOCK:
5 Q. Looking at Exhibit No. 11, Mr. Tarkanian, the first
6 page is a deposit slip on JAMD's bank account, right,
7 for $50,000?
8 A. Yes.
9 Q. All right.
10 A. Well --
11 Q. Followed --
12 A. Yes.
13 Q. -- immediately --
14 A. Yes, it is.
15 Q. Followed immediately by a copy of a check from
16 Tarkanian Basketball Academy on the same date payable to
17 JAMD for $50,000; is that right?
18 A. Yes.
19 Q. And it's signed by Judith Flynn, right?
20 A. Yes.
21 Q. She has authority to sign checks at your
22 instruction; is that right?
23 A. Yes.
24 Q. Okay. So you took a check from
25 Tarkanian Basketball Academy and deposited into the JAMD

63
1 bank account; is that right?
2 A. JAMD lent the -- the Tarkanian Basketball Academy
3 lent JAMD $50,000 which is on the records with our
4 accountant, and it is a debt by JAMD to the
5 Tarkanian Basketball Academy.
6 Q. Right, because the money was taken directly from
7 JAMD then and put into your bank account which you then
8 gave to your mortgage holder, right?
9 A. Yes.
10 Q. Okay. So now JAMD owes the Basketball Academy
11 $50,000, but it no longer owes you $50,000; is that
12 right?
13 A. Yes.
14 Q. You reduced your receivable by 50,000 more dollars
15 by this transfer; is that right?
16 A. Yes.
17 Q. Going on in Exhibit No. 11, this is now a copy of
18 the withdrawal slip from the JAMD bank account for
19 50,000 followed by the deposit slip into your account;
20 isn't that right?
21 A. Yes.
22 Q. And then followed by the withdrawal slip at the bank
23 for August 3rd for $50,000 cash which you then turned
24 into the cashier's check that you gave to
25 Bank of America; is that right?

64
1 A. Yes.
2 Q. Now, in order for you to be spending the Academy's
3 money, those expenditures have to be reasonable, don't
4 they?
5 A. Before I can pay out salaries, I have to have --
6 it -- they have -- the salaries have to be reasonable.
7 That's per the nonprofit requirements.
8 The expenditures, I don't know if there's any
9 similar requirement although I guess prudent business
10 sense would say that.
11 Q. You wouldn't make unreasonable expenditures on
12 behalf of the nonprofit basketball academy while you
13 were directing its finances, would you?
14 A. I would make it?
15 Q. You would not, would you?
16 A. Oh, no. Of course not.
17 Q. But the reason that you didn't write yourself a
18 check directly from the Tarkanian Basketball Academy to
19 yourself which you could have then deposited and put it
20 into a cashier's check and given it to the bank is
21 because you can't take money from a nonprofit if you
22 don't work for it, right?
23 A. Yes. I wasn't working for the Tarkanian Basketball
24 Academy at the time.
25 I was in the last two months of my congressional

65
1 campaign, so I felt it would not have been appropriate
2 for me to take a salary from JAMD at that time.
3 So JAMD had excess cash at -- our biggest months of
4 revenue for -- I'm sorry, the Tarkanian Basketball
5 Academy had excess cash because the biggest months in
6 revenue was June and July for the summer tournaments.
7 It had the cash available, so it lent JAMD the money
8 because JAMD needed it at that time, and the
9 Tarkanian Basketball Academy did not.
10 Q. Um-h'm. And JAMD needed it so that it could give it
11 to you so that you could pay your mortgage payment; is
12 that right?
13 A. JAMD needed it so it could repay me on the loan that
14 I had lent JAMD that money.
15 Q. And you consider that a reasonable expenditure of
16 the Academy's money at that time?
17 A. A loan is not an expenditure. It's a --
18 Q. That's right. It's not, is it?
19 A. No, it's not.
20 Q. Okay.
21 A. So it's not an expenditure.
22 Q. Since it wouldn't be reasonable for the Academy to
23 have given you the money directly, you characterized it
24 as a loan; isn't that right?
25 A. No. I characterize it as a loan because it was a

66
1 loan.
2 It -- it lent the money to JAMD. It's on the books.
3 It -- and JAMD owes it the money, and I could not take a
4 salary from JAMD because I wasn't working for JAMD at
5 the time.
6 Q. And just like with the insurance policy funds, you
7 passed the money through JAMD's bank account for a few
8 days, and then you transferred the money into your own
9 account; isn't that right?
10 A. From JAMD into my own account. Yes.
11 Q. Okay. But that so-called loan, that wasn't
12 documented either in terms of any kind of a formal
13 promissory note or any entity-to-entity documentation
14 other than some numbers that you put in a spreadsheet
15 and gave to your accountant; isn't that right?
17 question.
18 We have innumerous loans here. She says that loan.
19 THE COURT: All right. Can you be specific,
20 Ms. Mock.
23 BY MS. MOCK:
24 Q. I'm talking about the $50,000 from the nonprofit
25 academy, Mr. Tarkanian, that you didn't feel comfortable

67
1 giving to yourself but that you passed through JAMD for
2 a couple of days and then you used the money to pay your
3 mortgage payment.
4 You didn't document that loan in any way other than
5 putting some numbers on a spreadsheet that you later
6 gave to your accountant; isn't that right?
8 question.
9 Passed through is not --
11 MR. GILLMAN: -- what he's testified about.
12 There was a loan.
14 Ms. Mock.
15 BY MS. MOCK:
16 Q. Did you document it in any way --
17 THE COURT: Okay.
18 BY MS. MOCK:
19 Q. -- by a promissory note or some other instrument or
20 did you simply put numbers on a spreadsheet that you
21 gave to your accountant, Mr. Tarkanian?
22 A. You're asking me two questions. If you -- it's a
23 compound question.
24 I did not have a promissory note, but it was
25 documented not only on the Excel sheets but on the

68
1 ledger sheets that were provided to the accountant, the
2 bank accounts that were provided to the accountant, and
3 the -- and the cancelled check that would have been
4 provided to the accountant.
5 Q. Looking at Exhibit No. 11 at the actual check from
6 the Tarkanian Basketball Academy that's signed by
7 Judith Flynn --
8 A. Yes.
9 Q. Do you see that?
10 It doesn't say loan anywhere in the memo portion of
11 the check, does it?
12 A. No.
13 Q. And you --
14 A. I --
15 Q. -- didn't tell --
16 A. I --
17 Q. -- Judith Flynn that it was a loan from the
18 Basketball Academy to JAMD, did you?
19 A. I -- I very well may have. I don't recall. This
20 wasn't something that was being hidden from her.
21 We don't normally write notations what for it is if
22 you look at the other checks that are from JAMD.
23 Q. Did you instruct her to indicate that it was a loan
24 when she wrote this check?
25 A. No.
69
1 Q. Okay. But the transaction, nonetheless, impacted
2 the Academy's cash flow, didn't it?
3 A. It had excess cash flow at that time.
4 Q. And you were the only person who was authorized to
5 decide whether or not that was a reasonable use of the
6 Academy's cash flow, weren't you?
7 A. Yes.
8 Q. All right. Now, other than to repay this so-called
9 loan to you, JAMD didn't need the $50,000 from the
10 Tarkanian Basketball Academy to meet its operating
11 expenses as of July 27th, did it?
13 question.
14 The testimony is there was a loan not this so-called
15 that she keeps referring to.
17 You want to rephrase, Ms. Mock.
18 MS. MOCK: Sure.
20 BY MS. MOCK:
21 Q. JAMD didn't need a loan from the Academy, did it, to
22 continue its operations? It only needed the money to
23 repay its loan to you; is that right?
24 A. Yes.
25 Q. But there was -- Mr. Tarkanian, there wasn't any

70
1 real need for JAMD to repay your loan on July the 27th,
2 was there?
3 A. Yes, there was.
4 Q. Well, there were no promissory notes coming due at
5 that time because you had no note or instrument with --
6 A. No.
7 Q. -- JAMD, right?
8 A. I -- I did have a promissory note with JAMD which we
9 cannot find now after we produced -- we produced all the
10 promissory notes to your office.
11 When we made the copies, mine was in there, and now
12 it's -- we -- I can't find it. But the promissory notes
13 were not due at the time, no, but --
14 Q. Okay.
15 A. -- everybody who lent the money to JAMD, my family
16 members and everyone else, it was lent with the
17 understanding that when the lender needed the money to
18 be paid back it would be paid back if there -- if JAMD
19 had the ability to do so.
20 Q. And you were the sole --
21 A. This was standard practice that we had done with all
22 my family members going back to 2005.
23 Q. And you were the sole person to decide whether or
24 not that was necessary, right?

71
1 question.
2 He wasn't the sole person to decide when a family
3 member needed the money back which is what he testified
4 about.
6 THE WITNESS: Yes. I was in this -- whoever
7 was the lender, if they notified myself, who was the
8 person who could write the checks from JAMD, needed the
9 money to be paid back, I did everything I could to get
10 them the money to repay it back.
11 In fact, I did it for my brother-in-law, Zafi. He
12 lent JAMD $450,000 so that we could build what we call
13 Building No. 7 to put an OB/GYN tenant in.
14 He needed the money back to pay back his line of
15 credit, so I got him the $450,000 and we paid him.
16 My mother and father -- my mother wanted to retrofit
17 the home and repair it after my dad's illness.
18 And so she asked if I could pay back the money that
19 they had lent, so I -- actually, we borrowed money from
20 the life insurance policy to lend it to JAMD, and it
21 repaid back my mother and father over $250,000.
22 Q. Mr. Tarkanian --
23 A. In this occasion --
24 Q. -- I'm only talking about you right now.
25 A. And --
72
1 Q. I don't mean to interrupt, but I'm not talking about
2 all your other family members. I'm just saying here.
3 A. Well, I was giving you --
4 Q. In your case.
5 A. -- the normal --
6 MR. GILLMAN: Your Honor --
7 THE WITNESS: -- operating --
8 MR. GILLMAN: She is interrupting.
9 THE WITNESS: -- procedure --
10 MR. GILLMAN: If she has --
11 THE WITNESS: -- for how JAMD --
12 MR. GILLMAN: -- an objection --
13 THE WITNESS: -- operated --
14 MR. GILLMAN: -- narrative --
15 THE WITNESS: -- in the past.
16 MS. MOCK: Your Honor, I would --
17 MR. GILLMAN: It's inappropriate --
18 THE COURT: Is there --
19 MS. MOCK: -- (indiscernible) --
20 THE COURT: Is there an objection on the floor?
21 MR. GILLMAN: No, your Honor.
22 MS. MOCK: Thank you.
23 THE COURT: All right. You may continue.
25 BY MS. MOCK:
73
1 Q. Just to be clear, Mr. Tarkanian, there were no notes
2 coming due that JAMD needed to pay you, its lender, at
3 the time you transferred the $50,000 from the basketball
4 academy through JAMD to yourself to give to your
5 mortgage holder; is that right?
6 A. No.
7 Q. Okay. And the Academy, it could have loaned JAMD
8 the $50,000 ten months earlier if it wanted to, right?
9 A. Well, as I mentioned, JAMD -- the basketball academy
10 has most of its revenue at the summer months, so that's
11 when most of the revenue was there.
12 Q. Um-h'm.
13 A. But if it had the money ten months ago, yes, it
14 could have.
15 Q. Or it could have even loaned the money to JAMD ten
16 months later because it had excess cash. It could have
17 set it aside and loaned the money later to JAMD, right?
18 A. Yes.
19 Q. Now, your testimony is that you were making payments
20 to your home mortgage lender because you were afraid
21 that your mortgage payments were going to go up and you
22 weren't going to be able to afford them at some point in
23 the future; is that right?
24 A. Yes.
25 Q. Now, you could have simply waited to see if the

74
1 payments were actually going to go up before making this
2 $400,000 payment to your mortgage holder, right?
3 A. Why would I do that? If the payments have already
4 gone up, it's too late.
5 Q. Well, the payments had, in fact, been going down,
6 had they not, Mr. Tarkanian?
7 A. Yeah, but in 2012, there was my belief from what was
8 being said about the economy is that interest rates were
9 going to start going up.
10 And at the time in 2012, I think it would be agreed
11 upon by everybody that we have had historically low
12 interest rates that hadn't been there since
13 World War II.
14 At some point in time, those interest rates were
15 going to go back up to normal, and when they went back
16 up to normal, it would have increased my mortgage
17 payment to a point that would have been very difficult
18 for me to be able to pay in the future.
19 Q. Okay. That was my question, Mr. Tarkanian. You
20 could have taken this $50,000 from the Academy and just
21 waited to see if the payments actually went up.
22 You could have done that, couldn't you?
23 A. Yes, I could have.
24 Q. Okay. And you were the person who decided that now
25 JAMD was going to owe $50,000 back to the Academy, and

75
1 it would reduce its receivable to you by $50,000.
2 That's true, isn't it?
3 A. JAMD's receivable to me, yes.
4 Q. Okay. And just to be clear, the Tarkanian
5 Basketball Academy was not a judgment debtor against
6 which the FDIC had a $16,995,000 collectible judgment,
7 was it?
8 A. No.
9 Q. Okay. So the FDIC couldn't have pursued the Academy
10 for that $50,000; is that right?
11 A. No.
12 Q. And by the way, JAMD wasn't a judgment debtor
13 either, was it?
14 A. JAMD, no.
15 Q. Okay. So the FDIC could only pursue JAMD for any
16 moneys that it owed to you; isn't that right?
17 A. Yes.
18 Q. Okay. So a few weeks after August the 3rd, you made
19 another $50,000 payment to the mortgage holder; is that
20 right?
21 A. Yes.
22 Q. I believe that's Exhibit No. 12.
23 MS. MOCK: Which we've stipulated to,
24 your Honor.
25 THE WITNESS: Okay.

76
1 BY MS. MOCK:
2 Q. Now, Mr. Tarkanian, this is a check again written
3 from JAMD to you for $50,000 on August the 22nd; is that
4 right?
5 A. Yes.
6 Q. And you actually cashed this check at the bank,
7 right? That's your endorsement there on the back?
8 A. Yes.
9 Q. And instead of depositing it into your account, you
10 just took the cash and converted the cash into a
11 cashier's check which you made payable to
12 Bank of America as reflected on the second page of
13 Exhibit 12; is that right?
14 A. I think I did it all in one transaction, yes.
15 Q. And it is described as the -- again to be applied
16 towards your principal reduction, right?
17 A. Yes.
18 Q. Returning back to Exhibit No. 13 which is the copy
19 of all three of the cashier's checks --
20 A. Yes.
21 Q. Prior to this time, you would typically pay your
22 mortgage payment by personal check; isn't that right?
23 A. Yes.
24 Q. But instead of making these principal payments by
25 check, you elected to turn them into cash and get

77
1 cashier's checks; is that right?
2 A. Yes.
3 Q. And that was not typical of your methodology in
4 paying your mortgage holder, was it?
5 A. It was not typical of making my mortgage payments,
6 no.
7 Q. Okay. Now, before you had made these transfers that
8 we've just been talking about, you had been sued by the
9 FDIC on your personal guarantee of about a $14,000,000
10 loan from La Jolla Bank; isn't that right?
11 A. Yes.
12 Q. And you had signed a personal guarantee as did your
13 wife; your mother; your father; your sister, Jodie; her
14 husband; and your brother George; isn't that right?
15 A. Yes. And there was -- there was another couple,
16 Doug and -- and his wife, Johnson (phonetic).
17 Q. All right. So when the borrower failed on that
18 loan, defaulted on that loan, and you were sued by the
19 FDIC as receiver for La Jolla Bank, you actually lost
20 that lawsuit; isn't that correct?
21 A. I'm sorry. Can you rephrase that.
22 Q. Yes. You didn't win on your personal guarantee, did
23 you?
24 You were sued on your personal guarantee because the
25 lender defaulted and you lost; isn't that right?

78
1 A. I was sued by the FDIC, yes.
2 Q. That is correct.
3 A. And we lost, yes.
4 Q. Okay. And I believe looking at Exhibit 19 that you
5 have in front of you there --
6 A. Okay.
7 MS. MOCK: Your Honor, we've stipulated to
8 this. It's a copy of the judgment that was entered
9 against the debtors in the U.S. District Court,
10 Southern District of California.
11 THE COURT: Okay.
12 BY MS. MOCK:
13 Q. This judgment, Mr. Tarkanian, was entered against
14 you on May the 22nd of 2012, correct?
15 A. Yes.
16 Q. And that was just about six weeks before you started
17 making the transfers that we've been talking about;
18 isn't that right?
19 A. I think the transfer was about July 10th or
20 something like that, so, yeah, six weeks or so.
21 Q. Okay. And when the $17,000,000 judgment -- I'm
22 rounding because it's $5,000 short.
23 When the $17,000,000 judgment was entered against
24 you, you could not pay the judgment; isn't that right?
25 A. Yes.
79
1 Q. And, in fact, you had no intention of paying the
2 judgment; isn't that right?
3 A. I --
4 MR. GILLMAN: Objection. Assumes no facts in
5 evidence.
6 She can ask him what his intention was.
8 BY MS. MOCK:
9 Q. Mr. Tarkanian, isn't it true that you had no
10 intention of paying the judgment because it would have
11 been physically impossible for you to pay it?
12 A. Yes.
13 Q. Okay.
14 A. We didn't have that kind of money.
15 Q. At the time you made the transfers, according to
16 your personal financial statement dated December 22nd of
17 2011 which you signed under penalty of fine and
18 imprisonment for making false statements, you had a
19 receivable due to you from JAMD of $685,379 from JAMD
20 and another family company called Tark, LLC; is that
21 right?
22 MR. GILLMAN: Objection, compound. Objection.
23 Refers to an exhibit that she's not using, and it's
24 confusing for anybody in addition to the compound.

80
1 Can you rephrase.
2 MS. MOCK: Sure, your Honor.
4 BY MS. MOCK:
5 Q. Let's go ahead and turn to Exhibit No. 14,
6 Mr. Tarkanian.
7 THE COURT: Okay.
8 BY MS. MOCK:
9 Q. This is your personal financial statement dated
10 December 22nd, 2011.
11 A. Yes.
12 MS. MOCK: I believe we've stipulated to this.
13 BY MS. MOCK:
14 Q. And that's your notarized signature there on the
15 last page of the financial statement; isn't that
16 correct?
17 A. Yes, it is.
18 Q. Okay. And just so we have both things in front of
19 us, go ahead and turn to Exhibit No. 16 as well.
20 A. Okay. Okay.
21 Q. It's a document titled affidavit of financial
22 condition.
23 This is also a document that you signed on
24 December 22nd of 2011 in front of a notary public; is
25 that right?
81
1 A. Yes.
2 Q. All right. Looking at the exhibit No. 16, your
3 affidavit of financial condition, in paragraph 43 you
4 identify a receivable owed to you from JAMD in the
5 amount of $670,379; is that right?
6 A. Yes.
7 Q. And as a result of the transfers that you made that
8 we have talked about, you reduced that receivable by
9 $400,000; is that correct?
10 A. No.
11 Q. I thought you testified those were all loan
12 repayments owed to JAMD -- owed to you from JAMD.
13 A. No, that's not what I testified to.
14 As I testified, 50 -- 50,000 of it -- it was
15 actually 53,000 -- came from the loan repayment from the
16 congressional campaign, so it would have been 350,000.
17 Q. Okay. Thank you for clarifying that.
18 Nonetheless, you reduced at least $250,000 from the
19 receivable that was owed to you from JAMD in 2012 when
20 you put it into your house; is that right?
21 A. Yes.
22 Q. And that is $250,000 of this 600 and something
23 that's included in your affidavit of financial
24 statement; is that right?
25 A. Yes.
82
1 Q. And then you reduced the receivable further with the
2 $100,000 by the two additional payments that you made of
3 $50,000 each; is that right?
4 A. Yes.
5 Q. All right. Mr. Tarkanian, you are also the personal
6 guarantor of a 14-something-million-dollar loan from
7 Nevada State Bank; is that true?
10 MS. MOCK: Your Honor, if I might have a little
11 leeway here on credibility issues.
12 THE COURT: Okay.
14 THE COURT: I'll overrule the objection.
16 BY MS. MOCK:
17 Q. Mr. Tarkanian, you are also the personal guarantor
18 of approximately a $14,000,000 loan from
19 Nevada State Bank that was made to JAMD; is that right?
20 A. Yes.
21 Q. And Nevada State Bank closely follows your
22 operations at JAMD in terms of the expenses you approve;
23 is that right?
24 MR. GILLMAN: Objection. Way beyond anything
25 pled. No notice going into whatever this other

83
1 transaction may be. We're entitled to some kind of
2 notice.
3 MS. MOCK: Your Honor, we've talked about this
4 specifically at Mr. Tarkanian's deposition which is why
5 I raise it now. It goes to credibility of the witness
6 and the pattern --
8 MS. MOCK: -- and practice.
9 Thank you.
11 BY MS. MOCK:
12 Q. Isn't it true, Mr. Tarkanian, that Nevada State Bank
13 reduced your compensation by half in 2012 because they
14 thought that you were paying yourself too much money,
15 and they didn't think that it was considered a
16 reasonable expense; isn't that right?
18 question.
19 It assumes that he works for Nevada State Bank and
20 he gets compensation from them.
22 MR. ZIRZOW: I object. It calls for
23 speculation as well as to what Nevada State Bank was
24 thinking.
25 THE COURT: Okay. Sustained.

84
1 BY MS. MOCK:
2 Q. Mr. Tarkanian, then let me ask you this way.
3 You were paying yourself money out of JAMD's bank
4 account to yourself; isn't that right?
5 A. In --
6 Q. In --
7 A. -- March --
8 Q. -- 2012.
9 A. Yeah. There was six months in -- in April -- I'm
10 sorry, six months in 2012 that I received salaries or
11 compensation from JAMD, yes.
12 Q. Okay. And you told the bank it was for legal
13 services or management work.
14 A. Well --
16 A. The -- no, not necessarily.
17 The bank -- what it -- basically, they put it in
18 categories. My accountant puts them in categories of
19 what the expenditures are for.
20 I was doing a lot of the property management. I was
21 doing all the legal work, and I was doing all the
22 leasing work.
23 So I took the -- the -- those amounts. It was 70 --
24 75 -- 705,000 for -- they put it under professional fees
25 and 7,500 under property-management fees for the first

85
1 three months.
2 And then Nevada State Bank thought that was too
3 much, and they questioned me, said they would not pay
4 for any property-management fees.
5 So I -- I submitted for the next -- see, they only
6 look every quarter. So you only get input from
7 Nevada State Bank each quarter.
8 So I said, okay. Well, then, if you won't pay for
9 my property-management fees, I certainly should get
10 professional fees and the attorney fees.
11 I did that for three months, and then they said, no,
12 you can't do that unless you itemize each expense, and
13 then you can't do that unless -- even if they're
14 itemized -- unless they deal specifically with leases
15 and a very narrow category.
16 And -- and that's the relationship I have with the
17 bank.
18 Q. And you weren't actually ever able to satisfy them
19 in terms of providing what they would consider
20 sufficient evidence to prove that you were actually
21 providing bona fide services to JAMD for which --
22 A. No.
23 Q. -- you were writing yourself checks for either
24 15,000 or $7500; is that right?
25 MR. GILLMAN: Objection, speculation.

86
1 Objection, hearsay, as to what they said.
3 BY MS. MOCK:
4 Q. Let me ask you this, Mr. Tarkanian.
5 When you made the transfers of the 250,000, $350,000
6 out of JAMD to you, you did not disclose the transfer of
7 that cash to Nevada State Bank, did you?
10 THE WITNESS: There was no need to do that
11 because it wasn't an operating expense.
12 Nevada State Bank only charted the operating income
13 and operating expense because according to our loan
14 documents we do not have to pay interest on Note B
15 except at the end of the quarter if there was excess
16 cash flow.
17 Meaning an excess cash flow was defined as operating
18 income less operating expense and payments on Note A.
19 So --
20 Q. So is that a no, Mr. Tarkanian? You did not
21 disclose it to them?
22 A. It was a -- it was an answer to you what I gave you.
23 I explained the answer to you.
24 Q. Because you didn't consider it an expenditure, but
25 they didn't --
87
1 A. No.
2 Q. -- know anything about the cash going --
3 A. Okay.
4 Q. -- out the door, right?
5 A. You --
6 MR. GILLMAN: Objection, your Honor. It's not
7 a question. She's badgering him.
9 BY MS. MOCK:
10 Q. Mr. Tarkanian, you didn't even notify the bank after
11 you made the transfers because it did impact the cash
12 flow of JAMD, did it not?
13 A. There was no need --
14 MR. GILLMAN: Objection, relevance, this
15 notification.
17 THE WITNESS: There was no need under the loan
18 documents to notify Nevada State Bank of any loan
19 repayments.
20 And, in fact, from the time we had the loan with
21 Nevada State Bank from 2005 to the present, there has
22 probably been 40, 50 loan repayments made to myself, to
23 my siblings, and to trusts.
24 Not one time would I have notified Nevada State Bank
25 because it wasn't relevant to our loan documents.

88
1 BY MS. MOCK:
2 Q. So as long as you characterized it as a loan
3 repayment rather than compensation to you for your legal
4 services, let's say, then you didn't need to disclose it
5 to Nevada State Bank; is that right?
7 question, the characterization.
8 If it was a loan or not, he testified to it. It was
9 not his testimony of a characterization.
11 You may answer the question.
12 THE WITNESS: I'm sorry. Could you say it
13 again, please.
14 BY MS. MOCK:
15 Q. As long as you characterized the money flowing from
16 JAMD to you as a loan repayment rather than
17 characterizing it as payment for your legal services or
18 payment for your management of the property, then you
19 didn't have to report the payment to Nevada State Bank;
20 is that right?
21 A. I don't think $350,000 could ever be considered a
22 reasonable attorney fees or reasonable property
23 management fees over a one month or three-month period.
24 So it would obviously not be payment for work done,
25 and I've already said there's documentation to show that

89
1 it was repayment of the loan, the documentation that I
2 provide to my accountant along with the bank records and
3 the -- and the records that he keeps.
4 MS. MOCK: Your Honor, I'm going to object that
5 that was not responsive.
6 THE COURT: I'll sustain the objection, but you
7 should move on.
10 BY MS. MOCK:
11 Q. The reason -- and I'm going to wrap this up with
12 Nevada State Bank, Mr. Tarkanian -- is because you only
13 had to pay them back out of JAMD after you deducted
14 reasonable expenses because they were looking at excess
15 cash flow, and you paid them based on excess cash flow
16 of JAMD; is that right?
17 MR. GILLMAN: Objection. Speculation on his
18 part as to what Nevada State Bank thinks.
20 MS. MOCK: If I may refresh the witness'
21 recollection with a document, your Honor?
24 BY MS. MOCK:
25 Q. Mr. Tarkanian, I'm going to hand you a document.

90
1 THE COURT RECORDER: I'm sorry, Counsel. You
2 need to be at a microphone when you're (indiscernible).
3 MS. MOCK: May I approach?
4 THE COURT: You may approach.
5 BY MS. MOCK:
6 Q. Mr. Tarkanian, I've handed you a document that
7 contains a Bates No. DSB-00074 through 00077.
8 MS. MOCK: I don't know. Would your Honor like
9 a copy or not?
10 THE COURT: Yes, please.
11 BY MS. MOCK:
12 Q. Now, at your deposition a couple of weeks ago, you
13 told me about communications you had had with a bank
14 officer named Sherri Weaver; is that right?
15 A. Yes.
16 Q. Okay. And you told me that you had had some
17 disagreement with her about the expenses that she was
18 disallowing at JAMD; is that correct?
19 A. Yes.
20 Q. And this E-mail that I've handed you with the Bates
21 number on it DSB00074 through 77, this is an E-mail from
22 Sherri Weaver to you dated October 16th, 2012, where she
23 is addressing the issue of the excess cash flow for the
24 second quarter; is that right?
25 MR. GILLMAN: Objection, your Honor.

91
1 There's a point at which we're trying to be fast
2 track on all of this. It was never produced.
3 We meet with them. We give them documents. We give
4 them everything. They go through and stipulate to what
5 they have.
6 And now she brings this in when we have no
7 opportunity to talk to Nevada State Bank or go over any
8 other correspondence with it.
9 I object to the use of this exhibit.
10 MS. MOCK: Your Honor --
12 MS. MOCK: If I --
13 THE COURT: Response?
14 MS. MOCK: -- may respond.
15 MR. GILLMAN: Which was never disclosed.
16 MS. MOCK: Your Honor, it's --
17 THE COURT: Ms. Mock?
18 MS. MOCK: -- for impeachment purposes only.
19 I'm asking the witness about the cash-flow impacts
20 and why he is characterizing these things as loans with
21 Nevada State Bank when he has done the exact same thing
22 in the transaction that is before you.
23 And I am using it to refresh the witness'
24 recollection and to impeach him on his testimony that he
25 has been given concerning the regularity with which he

92
1 does this.
2 THE COURT: I'm --
3 MS. MOCK: So I'm going to ask if you would
4 look at the E-mail --
5 THE COURT: Well --
6 MS. MOCK: -- and I can --
7 THE COURT: I'll --
8 MS. MOCK: -- ask him some questions about it.
9 THE COURT: I'll overrule the objection.
11 BY MS. MOCK:
12 Q. Do you recognize this E-mail from Ms. Weaver,
13 Mr. Tarkanian, addressing the second quarter excess cash
14 flow for 2012?
15 A. I believe so, yes.
16 Q. Okay. And there's three things that are -- four
17 things that are on here I'd like to address your
18 attention to.
19 First --
20 MR. GILLMAN: Objection to any content being
21 used. She said she's using it to refresh his
22 recollection.
23 MS. MOCK: Oh.
24 MR. GILLMAN: She's now going to read from it.
25 I object to this form of the question.

93
1 THE COURT: I will --
2 MS. MOCK: I will --
3 THE COURT: I'll sustain that objection.
4 MS. MOCK: All right.
5 THE COURT: All right?
6 BY MS. MOCK:
7 Q. Mr. Tarkanian, do you recall that Nevada State Bank
8 was criticizing that the expenses you were submitting to
9 them were not supported by invoices?
10 MR. GILLMAN: Objection, time frame.
11 What point in time? This is total ended loan
12 period. The --
13 THE COURT: All right. Ms. Mock --
14 MS. MOCK: Your Honor, I'm only --
15 THE COURT: Can you --
16 MS. MOCK: -- asking about --
17 THE COURT: Can you --
18 MS. MOCK: -- the --
19 THE COURT: Can you specify a particular point
20 in time.
21 MS. MOCK: Sure.
22 BY MS. MOCK:
23 Q. And I do just want to make sure we're talking about
24 the same thing, Mr. Tarkanian.
25 This is the second quarter expenses for 2012 that

94
1 we're talking about. All right?
2 A. Yes.
3 Q. This is also during the period of time that you made
4 the transfers out of JAMD's bank account, is that
5 correct, July and August, 2012?
6 A. No. July and August would be the third quarter.
7 Q. Okay. This is the immediately-preceding quarter,
8 then, correct?
9 A. Yes.
10 Q. Okay. So up until that point, isn't it true that as
11 of the second quarter excess cash flow, the bank was
12 asking you to support your expenses with invoices; isn't
13 that right?
14 A. The bank did not -- I -- as I testified earlier, the
15 bank would not accept me being on a retainer for
16 attorney fees for $7500. They said they would only pay
17 me what I submit an actual itemized invoices for.
18 And then I submitted those, and they said, well, we
19 wouldn't count those, either, unless they deal only with
20 leases or something dealing with leases.
21 Q. Okay. And isn't it true that that was because they
22 didn't consider that fee was customary for a development
23 such as JAMD which is an office complex?
24 A. I don't know why -- what their feeling was. They
25 felt that the retainer fee was more than they should pay
95
1 me, just what I said.
2 Q. Is that what Ms. Weaver wrote to you in her E-mail
3 that is in front of you?
4 A. Yes.
7 MR. GILLMAN: Content.
9 BY MS. MOCK:
10 Q. Mr. Tarkanian, isn't it true that the bank wanted
11 you to verify JAMD's declared expenses as being
12 necessary and actually incurred?
13 Isn't that what they were asking for you to do, and
14 you were unable to do so?
15 MR. GILLMAN: Objection, content of the
16 undisclosed exhibit.
18 BY MS. MOCK:
19 Q. Mr. Tarkanian, do you recall Ms. Weaver pointing out
20 that you might have a conflict of interest because of
21 your ownership interest in and management of JAMD and
22 also the fact that you were writing checks to yourself
23 either for attorney's fees or for management fees.
24 Do you recall anything --

96
1 BY MS. MOCK:
2 Q. -- at all about that?
3 MR. GILLMAN: -- content.
4 She is reading from --
7 BY MS. MOCK:
8 Q. Mr. Tarkanian, isn't it true that Ms. Weaver
9 addressed to you the fact that the excessive management
10 and legal fees and expenses did not pertain to the
11 project and would be added back to the excess cash flow?
12 You don't recall anything at all about that?
13 MR. GILLMAN: Objection, compound. She's asked
14 two questions.
15 As for the first question, objection, content of the
16 undisclosed exhibit.
18 BY MS. MOCK:
19 Q. Mr. Tarkanian, then I would ask you to look at the
20 document beginning with Bates No. NSB-00074.
21 And by the way, did you recognize this as a true and
22 correct copy of the E-mail you received from
23 Sherri Weaver on October 16th, 2012?
24 A. No. I --
25 MR. GILLMAN: Objection, compound.

97
1 She asked him --
3 MR. GILLMAN: -- to look at it.
5 He already testified that he recognized the
6 document.
7 MR. GILLMAN: Okay.
9 Then we would move to admit it, please.
11 Is there --
12 MR. GILLMAN: Objection, notice.
13 THE COURT: Okay.
15 THE COURT: Okay. Objection overruled.
16 It'll be admitted.
17 (Thereupon, Creditor's Exhibit No. 22
18 was admitted into evidence.)
19 MS. MOCK: I think our next --
20 THE COURT: Okay.
21 MS. MOCK: -- exhibit number is 22.
22 THE COURT: All right. Do you want to just
23 leave this exhibit marked as the Bates-stamped exhibit?
24 MS. MOCK: That's fine, your Honor.
25 I apologize. I don't have any stickers up here, but

98
1 we can -- I'm sure the Clerk could possibly mark it as
2 Exhibit 22 for the FDIC.
3 THE COURT: Okay.
4 BY MS. MOCK:
5 Q. Mr. Tarkanian, I'm going to ask you to look at
6 paragraph 3 beginning with the words your ownership.
7 A. Yes.
8 Q. Isn't it true that Ms. Weaver wrote to you pointing
9 out that your ownership interest in and management of
10 JAMD have the potential to create a relationship between
11 JAMD and yourself that is not arm's length?
12 That's correct, isn't it?
13 A. Yes.
14 Q. And she goes on in the paragraph about four or five
15 lines down beginning with JAMD's CPA.
16 Do you see that?
17 MR. GILLMAN: Objection, cumulative.
18 MS. MOCK: Also in paragraph 4 --
19 MR. GILLMAN: She's introduced the instrument.
20 It speaks for itself. Having him go through what it
21 says is needless, cumulative evidence.
22 THE COURT: I'll sustain that.
23 MS. MOCK: Your Honor, I would just ask for a
24 little leeway --
25 THE COURT: Okay.

99
1 MS. MOCK: -- because Mr. Tarkanian has denied
2 remembering anything about this, and now I've --
3 THE WITNESS: That's --
4 MS. MOCK: -- had to go through the exercise of
5 introducing the exhibit so that I can point out to him
6 specifically why they were concerned about JAMD's cash
7 flow in the 2012 period.
8 MR. GILLMAN: That's not --
9 THE COURT: Well, if you want to ask --
10 MR. GILLMAN: -- accurate.
11 THE COURT: -- questions about why
12 Nevada State Bank was concerned, that's for
13 Nevada State Bank to testify not the witness.
14 So I'm not going to allow a question along those
15 lines.
16 MS. MOCK: Okay.
18 BY MS. MOCK:
19 Q. Then my question to the witness will be,
20 Mr. Tarkanian, you were aware in 2012, at least as of
21 the second quarter, that Nevada State Bank was concerned
22 that the expenses that you were submitting to the JAMD
23 did not relate to the JAMD project; isn't that right?
25 THE COURT: I'll overrule that.

100
1 THE WITNESS: No, that's not true. It's the
2 third quarter when they notified me that they would not
3 accept my retainer fee for JAMD.
4 BY MS. MOCK:
5 Q. Okay. So then looking at Exhibit 22, the fourth
6 paragraph about six lines down -- and I'm just going to
7 quote from it, and tell me if this refreshes your
8 recollection, Mr. Tarkanian.
9 Ms. Weaver writes, "Unnecessary expenses such as
10 excessive management or legal fees or expenses that do
11 not pertain to the JAMD project will be added to the
12 calculation of excess cash flow to be applied against
13 the secondary note on a quarterly basis consistent with
14 the agreement between JAMD and NSB," closed quote.
15 Does that refresh your recollection?
18 BY MS. MOCK:
19 Q. Did you recall responding to Ms. Weaver's E-mail to
20 you?
21 A. We had a lot of E-mails back and forth, and it was
22 over a couple different quarters.
23 The first time I -- well, I'm not going to
24 speculate.
25 We had a lot of different E-mails, and I tried to

101
1 respond back to each of their concerns, and then I made
2 adjustments to how I was compensated based upon their
3 concerns.
4 Q. Now, after Ms. Weaver questioned the cash flow of
5 JAMD and the money that was going out to you, she
6 actually asked you to start providing invoices, right?
8 We're still back on the same instrumentation in this
9 exhibit.
11 MS. MOCK: Your Honor, a little leeway on this
12 again. It's about the manipulation of --
14 MS. MOCK: -- of --
15 MR. GILLMAN: She wanted --
16 MS. MOCK: -- of --
17 MR. GILLMAN: -- to go to trial now --
18 MS. MOCK: -- of the way that the --
19 MR. GILLMAN: Leeway --
20 MS. MOCK: Your Honor, excuse me.
21 MR. GILLMAN: -- is --
22 MS. MOCK: About how --
23 THE COURT: Mr. Gillman, please sit down.
24 What is your response, Ms. Mock?

102
1 We're trying to show that there is a pattern of
2 practice of how things are characterized by
3 Mr. Tarkanian in order to move money out of JAMD into
4 his account.
5 What we have, in fact, before us is over a $600,000
6 receivable that he claims was due him. He has moved a
7 significant amount of that money into his home equity.
8 And we know and we have seen that there is a pattern
9 of him moving money in various ways and being questioned
10 by other banks on how he is actually documenting and
11 proving that those expenditures or cash-flow adjustments
12 are appropriate.
13 And that's what we need to show of this witness
14 because your Honor is going to be asked to judge his
15 credibility in this case.
16 THE COURT: All right. I think I've seen
17 enough on this particular issue, so you --
19 THE COURT: -- need to move on.
22 BY MS. MOCK:
23 Q. Mr. Tarkanian, you are a licensed attorney; is that
24 correct?
25 A. Yes.
103
1 Q. And your license is still valid and active?
2 A. Yes.
3 Q. You haven't been disbarred.
4 A. No.
5 Q. Okay. But you don't consider yourself to be a
6 practicing attorney, do you?
7 A. Well, we start -- me and a friend of mine started a
8 law firm in January of this past year.
9 I don't really do any work except for stuff dealing
10 with my family's specific entities.
11 Q. Okay. Isn't it true that you told your partner that
12 you really weren't practicing law?
13 A. I'm not practicing law.
14 Q. Okay.
15 A. Except -- that's -- that's a mischaracterization.
16 Okay.
17 What I said was she wanted to start a law firm. I
18 said I don't want to go back into being a -- practicing
19 law. I'm only doing stuff for my family.
20 She asked if we could join a -- form a partnership
21 and if I would help oversee her because she's new, and I
22 said yes.
23 MS. MOCK: Your Honor, if I may just have one
24 moment?

104
1 BY MS. MOCK:
2 Q. All right. Mr. Tarkanian, after your deposition, I
3 actually took the time to look up your law firm on the
4 Internet, and I found a firm called the
5 Tarkanian & Knight Law Group.
6 Is that your firm?
7 A. Yes.
8 Q. And though you told me at your deposition that you
9 were not practicing, isn't it true that you hold
10 yourself out to the public as a partner of that firm who
11 specializes in business law and consulting with years of
12 experience?
14 Your Honor, we're -- and holds himself out in what?
15 I --
16 THE COURT: All right. Can you be more
17 specific, Ms. Mock. I'll --
18 MS. MOCK: Yes, your Honor.
19 THE COURT: I'll sustain the objection.
20 MS. MOCK: It's going to credibility,
21 your Honor.
22 THE COURT: Okay.
23 MS. MOCK: When I deposed Mr. Tarkanian, he
24 told me that he was not practicing law. He gives a
25 little bit of oversight to an associate that he has

105
1 started a law firm with.
2 I went to the Web site, and, unfortunately, I don't
3 have in front of me the pages from the Web site right
4 now to refresh Mr. Tarkanian's recollection.
5 But my question is whether or not he holds himself
6 out to the public -- that is anyone who could go to his
7 law firm Web site -- as a partner of the firm, and I'm
8 quoting, "He specializes in business law and
9 consulting."
10 MR. GILLMAN: Further objection.
11 BY MS. MOCK:
12 Q. Isn't that true, Mr. Tarkanian?
13 MR. GILLMAN: Further objection, hearsay.
14 THE COURT: I'll sustain the hearsay objection.
15 If you want to ask the question whether he is, in
16 fact, holding himself out to the public through the law
17 firm --
18 MS. MOCK: I'll be --
19 THE COURT: -- you may do that.
20 MS. MOCK: -- happy to, your Honor.
22 BY MS. MOCK:
23 Q. Are you, in fact, Mr. Tarkanian, at your law firm
24 Web site of Tarkanian & Knight Law Group holding
25 yourself out to the public as an attorney who is a

106
1 partner of the firm? Yes or no.
2 A. I have never done any social media including Web
3 sites, but I am a partner of the firm, and that's what
4 I've told you at the deposition.
5 Q. And that's what it says on your Web site; is that
6 right?
8 She's asking about what it says.
9 THE COURT: Do you want to ask him whether he
10 knows what's on his Web site?
11 BY MS. MOCK:
12 Q. Do you know what's on your Web site, Mr. Tarkanian,
13 since you are a partner of the Tarkanian & Knight
14 Law Group?
15 A. No. I've never been on the Web site. I've never
16 done any social media or --
17 THE COURT: Okay.
18 THE WITNESS: -- advertise me practicing law.
20 BY MS. MOCK:
21 Q. Do you know whether your law firm Web site,
22 Tarkanian & Knight Law Group, is actually advertising
23 you as a lawyer specializing in business law and
24 consulting?
25 Do you know one way or the other?

107
1 MR. GILLMAN: Objection, foundation.
2 He just said he's never been on it.
4 BY MS. MOCK:
5 Q. Has anybody ever called you to provide business and
6 consulting services, Mr. Tarkanian --
7 A. No.
8 Q. -- as a result of looking at your profile on your
9 Web site?
10 A. I've never got a call. They may have called the
11 office, but I don't even get messages at the office.
12 Q. So do you consider yourself that you are not a
13 practicing attorney or that you are a practicing
14 attorney? Which one is it?
15 A. As I stated to you earlier, I practice law for
16 entities my family has, and I provide oversight to the
17 lady who just passed the Bar, and when she has questions
18 about what to do I try to provide it to her the best I
19 can.
20 Q. Okay. And that's the only practicing of law that
21 you do; is that right?
22 A. Well, there was one time the lady wanted to settle
23 a -- she had a case with a guy that had bounced some
24 checks, and she asked me to call the guy and -- and
25 request payment. I've done that.

108
1 But I've never gone into court, prepared any
2 documents, or any of that stuff.
3 Q. You're the manager for JAMD, right?
4 A. Yes.
5 Q. And didn't you open that company in about 2007 or
6 so?
7 A. It sounds right. Excuse me.
8 Q. And it owns a commercial office building?
9 A. It owns a commercial development project that has
10 four -- well, there's only three of them that we
11 currently own.
12 Q. Okay. And you are the person that negotiated the
13 loans related to the development; is that right?
14 A. Yes.
15 Q. And you are also the manager for a company called
16 Tark, LLC; is that right?
17 A. Yes.
18 Q. And that's another business that's owned in large
19 part by your family members if not exclusively?
20 A. Yes.
21 Q. Okay. And that business opened in about 1999?
22 A. That sounds right.
23 Q. That's a retail shopping center here in Las Vegas?
24 A. No.
25 Q. What is it?
109
1 A. It's a retail building in Clovis, California, 8800
2 square feet. It's like a pad.
3 Q. Okay. So it's in Clovis. It's not in Las Vegas.
4 A. Yes.
5 Q. Okay. And you review and approve leases for the
6 tenants of the buildings, right?
7 A. Yes.
8 Q. And you work with leasing agents?
9 A. Yes.
10 Q. So back in 2002, you were keeping up with the market
11 in order to approve leases for these businesses; is that
12 right?
13 MR. GILLMAN: Objection, compound. She's
14 saying these businesses.
15 We had shifted to Tark. Are we talking both Tark --
16 object to the form of the question and JAMD.
17 THE COURT: Can you rephrase, Ms. Mock.
18 MS. MOCK: Sure. We can go --
20 MS. MOCK: -- one at a time, your Honor.
21 BY MS. MOCK:
22 Q. You were keeping up with the market in 2002 in order
23 to approve leases for the Tark shopping center; is that
24 right?
25 A. It's --
110
1 Q. For building center?
2 A. Yeah. It's the Tark building.
3 I don't know when the building was finished. We --
4 we built it. I think we bought the property in '99, if
5 that's what the document says. Then we built the
6 building, and we had to get tenants for the building.
7 So at some point in time, after it was built -- 2002
8 sounds like a reasonable time period -- we started
9 accepting leases. Yes.
10 Q. So that means that in 2012, which is the period I'm
11 asking you about --
12 A. Well, you said --
13 Q. -- you're reviewing --
14 A. -- 2002.
15 Q. 2012, the time period that we are talking about here
16 where the transfers occurred --
17 A. Yeah.
18 Q. -- to the bank. I'm just asking about that period,
19 Mr. Tarkanian.
20 A. Okay.
21 Q. In that period of time, you were reviewing and
22 approving leases for the Tark building; is that right?
23 A. If we had any leases during that time period, yes.
24 It's a small building. At times it's been vacant, and
25 we may have had a lease that -- if the lease was

111
1 assigned then, yes, I would have reviewed it.
2 Q. That is your responsibility, the leases for the
3 building; isn't that right?
4 A. It's my responsibility to manage a property, and I
5 have a leasing agent, and it certainly is my
6 responsibility to review the leases, and if I agreed I'm
7 going to sign them.
8 Q. And the same goes for JAMD; is that true as well?
9 A. Yes.
10 Q. It's your responsibility to review and approve the
11 leases?
12 A. Yes.
13 Q. Back to your Exhibit 1, your declaration, in
14 paragraph 11 of your declaration -- let me know when
15 you've found it.
16 A. I have it.
17 Q. You write that, I'm quoting, "You were deeply
18 concerned that interest rates could rise and, in turn,
19 the monthly payments on my ARM loan would be beyond my
20 ability to continue to make my payments."
21 Is that right?
22 A. Yes.
23 Q. So you wanted to pay down your mortgage because you
24 wanted it to be low enough to be able to make your
25 mortgage payments in the future in case they went up

112
1 which I think you've said; is that right?
2 A. Yes, and to try to refinance it at a fixed rate
3 because the interest rates were so low at the time.
4 Q. Okay. But interest rates have not gone up, have
5 they, Mr. Tarkanian?
6 A. If so, very little.
7 Q. Okay. In looking still at Exhibit 1, at the top
8 you'll see page 20 of 33. It's part of an exhibit that
9 you attached to your declaration.
10 A. Okay.
11 Q. Now, Exhibit C contains some ledger sheets and
12 things.
13 I believe you testified at your deposition the first
14 two pages were -- you obtained from your accountant, and
15 the rest were provided by you; is that right?
16 A. Yes. I believe so.
17 Q. Okay. So looking at page 20 of 33 of your
18 declaration.
19 A. Okay.
20 Q. Down on line 34 -- this page, by the way, page 20 of
21 33, this is one of those spreadsheets that you told us
22 about earlier where you put down the numbers of the
23 loans that are made between the companies and
24 individuals and the like; is that right?
25 A. Yes.
113
1 Q. Okay. So looking in the left-hand column of this
2 page, it has the TPC loan summary at the top.
3 A. Yes.
4 Q. What does that refer to, TPC? What does that stand
5 for?
6 A. Tarkanian Professional Center is the development
7 project that JAMD owns.
8 Q. Okay. So this is the JAMD loan summary page, is
9 that right, or one of them?
10 A. Yes.
11 Q. Okay. And on line 16, column A, it says D.T. five
12 percent.
13 Does that stand for Danny Tarkanian five percent?
14 A. Danny Tarkanian five percent, yes.
15 Q. Okay. And is this where you list the amounts that
16 JAMD owes to you under column B; is that right?
17 A. Yes.
18 Q. And then you've got the interest that you're adding,
19 and then you've got whether there's a column for moneys
20 that have been paid back, and then you've got the column
21 for the date; is that right?
22 A. Yes.
23 Q. So when I'm looking at line 34, it looks to me like
24 as of July 1st of 2010 JAMD owed you $748,465; is that
25 right?
114
1 A. Yes.
2 Q. So at that point in time, July, 2010 -- and we'll
3 get to this in a minute because you may recall under
4 your note that you signed you actually had a change date
5 that occurred for the interest rate in 2010; is that
6 right?
7 Do you recall that off the top of your head,
8 Mr. Tarkanian, or do we have to go look at the exhibit
9 again?
10 A. Yes, I recall that we had a change date after we
11 went through the deposition.
12 Q. Okay. So you signed the note on your house in 2005,
13 right?
14 A. Yes.
15 Q. And then you had a change date for the interest rate
16 that occurred in July of 2010; is that right?
17 A. Yes.
18 Q. Okay. So as of July of 2010 when your interest rate
19 was about to change on your house, on your house
20 payment, you could have actually repaid to yourself all
21 or even part of this loan from JAMD in order to pay down
22 the debt on the note and try to refinance the balance at
23 a lower rate as of July 2010; is that right?
25 question.
115
1 She said you could pay. JAMD owed the debt, and
2 what the appropriate issue is is JAMD's ability to pay.
3 I object to the form of the question.
4 THE COURT: Well, I'll --
5 MS. MOCK: Again --
6 THE COURT: -- sustain the objection.
7 MS. MOCK: Your --
8 THE COURT: Can you rephrase.
9 MS. MOCK: Yeah, your Honor.
10 BY MS. MOCK:
11 Q. You're the person who made all the decisions about
12 how JAMD's money was spent, right, Mr. Tarkanian?
13 There's not somebody else that writes the checks for
14 JAMD?
15 A. Yes.
16 Q. Okay. So just to be clear, when I say you, I mean
17 you could have instructed that a check from JAMD be
18 written to you for $748,000 four hundred and --
19 A. No.
20 Q. $748,465, and you could have used some or all of
21 that money to repay the note that was owed by you to the
22 mortgage holder as of July 1st, 2010; isn't that right?
23 A. No. No.
24 Q. Well, you could have used some of that money to
25 repay yourself at that time, couldn't you?

116
1 A. It would depend on what JAMD had in the bank again
2 and how much cash available it had and the ability it
3 had to borrow from some other entity if it needed to.
4 Certainly not 748,000. 2010 is in the midst of our
5 recession. Our property was doing very poorly at the
6 time. I don't know what the cash flow was then.
7 Q. Couldn't have borrowed against some of your parents'
8 life insurance policies and done the exact same
9 transaction --
10 A. Yeah.
11 Q. -- that you did in 2012 back in 2010?
12 A. I think the life insurance policy had already lent
13 money to JAMD at that point. Actually, it -- it had,
14 144,000 in April of 2010.
15 Q. Is it your testimony to this Court that there was no
16 other available insurance money you could have borrowed
17 in 2010? You could only do that in 2012?
18 MR. GILLMAN: Your Honor, objection.
19 Speculation on what could have happened in 2010.
20 THE COURT: I'll sustain that objection.
21 MS. MOCK: Your Honor, a little leeway.
22 We're trying to show that the timing of this is
23 incredibly important to the Court because Mr. Tarkanian
24 made a decision to make a transfer after the judgment
25 was entered against him, and he had numerous

117
1 opportunities to do so prior to the time the judgment
2 was entered against him.
3 THE COURT: The objection is still sustained.
6 BY MS. MOCK:
7 Q. According to -- well, you were present when your
8 sister Jodie testified, but you probably know it on your
9 own.
10 Your father's health had begun failing as of 2009
11 when he had fallen and severely injured himself; is that
12 correct?
13 A. Yes.
15 She's asking what Jodie said at her deposition.
17 MS. MOCK: Okay.
18 THE COURT: I'll sustain the objection.
19 Can you rephrase.
20 MS. MOCK: I think I asked him if he knew on
21 his own as well --
22 THE COURT: Certainly.
23 MS. MOCK: -- your Honor.
24 Thank you.
25 THE COURT: Okay.

118
1 BY MS. MOCK:
2 Q. Isn't that true, Mr. Tarkanian? Your father's
3 health had begun to fail in 2009 when he had fallen and
4 severely injured himself?
5 A. Yes.
6 Q. All right. But by 2010, a year later when the
7 interest rate was about to change under your note, you
8 did not try to refinance or pay down your mortgage
9 payment or engage in any of the transactions similar to
10 what you did in 2012, did you?
11 A. No.
12 Q. If you could take a look at -- it's Exhibit No. 5.
13 A. Okay.
14 MS. MOCK: And we've also stipulated to,
15 your Honor. It's the homestead exemption.
16 THE COURT: Okay.
17 BY MS. MOCK:
18 Q. You bought your house in 2005, but you didn't
19 declare it as your homestead at that time; is that
20 right?
21 A. No, we did not.
22 Q. Right.
23 A. No.
24 Q. So looking at Exhibit 5, this is a copy of the
25 homestead exemption that you and your wife signed in

119
1 January of 2013, right?
2 A. Yes.
3 Q. And at your deposition, you would not explain to me
4 why you waited until January of 2013 to file your
5 homestead because you didn't want to disclose that
6 information; is that right?
8 THE WITNESS: (Indiscernible).
9 MR. GILLMAN: -- hearsay as to what happened
10 at the deposition.
11 If she wants to ask him a question --
13 BY MS. MOCK:
14 Q. At your deposition, you didn't provide me with any
15 explanation as to why you waited until January, 2013, to
16 file your homestead exemption, did you?
17 A. As I --
18 Q. Do you remember?
19 A. -- told you, that was attorney/client privilege, and
20 I didn't want to waive my attorney/client privilege.
21 Q. Okay. By July of 2012 when you started making these
22 transfers to Bank of America, you were current on your
23 mortgage payments at that time, were you not?
24 A. Yes.
25 Q. You had not received any notice of default from the

120
1 bank.
2 A. No.
3 Q. Your house was not in foreclosure.
4 A. No.
5 Q. Paying down the mortgage was not necessary for you
6 to stay in the home because you were able to afford your
7 mortgage payments, and you could have just kept making
8 them; isn't that true?
9 A. Well, it depends what time frame you're looking at.
10 I could have made my payments on that next month,
11 but as I testified to you before, I was worried, as I
12 think most people who lived in Las Vegas were, that you
13 have a home that's several-hundred-thousand dollars
14 under water and interest rates are going to rise.
15 And once those interest rates rose, I was worried I
16 would not be able to make my monthly mortgage payment on
17 the home.
18 Q. But then you could have called the loan from JAMD,
19 could you not, Mr. Tarkanian?
20 A. I could have called --
21 MR. GILLMAN: Objection. Objection to the form
22 of the question. No time frame at all.
24 Can you give a more specific time frame.
25 MS. MOCK: Sure.

121
1 THE COURT: Okay.
2 BY MS. MOCK:
3 Q. I'm talking about in 2012, Mr. Tarkanian, your
4 belief was the only way that you could stay in your home
5 was to pay down your mortgage so that you could
6 refinance it; is that right?
7 A. No.
9 question.
10 He didn't testify his only way.
12 BY MS. MOCK:
13 Q. Well, it's true that you could have stayed in the
14 home by just continuing to make mortgage payments, is
15 that correct, in July of 2012?
16 A. Yes.
17 Q. And August and September and October of 2012 you
18 were meeting your mortgage payments; isn't that right?
19 A. In July of 2012, I had -- well, actually, even
20 before that, but during that time frame, since that's
21 what we're talking about, I had three options.
22 One is I could have stayed in the home and waited
23 for insurance -- interest rates to go up.
24 And if they went up to what they were when I
25 initially took out the loan, 5.7 percent, my monthly

122
1 mortgage payment with insurance and impounds would have
2 been 3700 a month. Currently, it was 1500 a month.
3 So if the interest rates just went up to what they
4 were pre-recession levels, I'm going to have to come up
5 with 2200 more a month just to make my monthly payment.
6 During that time period in April of 2012, I was
7 receiving revenue or money from two sources only. One
8 was the Tarkanian Basketball Academy.
9 Well, that lease had expired with the
10 Station Casinos. The Station Casinos are giving us
11 notice that they were going to move us from that space.
12 Our lease had expired. They were going to move us.
13 The recession hit, and they didn't move us, but they
14 can move us any time now. So that revenue could end at
15 any point.
16 I was receiving money from JAMD, money that it had
17 repaid in loans or salaries that I was receiving.
18 JAMD was upside down several-million dollars. We
19 were trying to survive and -- and keep JAMD available.
20 If it did go under, I could not receive any money from
21 them.
22 So the first option of staying in the home waiting
23 for interest rates to go up and my mortgage going up
24 2500 or more dollars a month in my mind would have been
25 irresponsible to my wife and kids. It would have put

123
1 them at a risk of not having a home. So I said, no,
2 that's not an option.
3 My other two options were I could have let --
4 vacated my home and let it go into foreclosure or short
5 sale, whichever way, left the home, and I would have
6 stuck Bank of America with a $300,000 loan that I owed
7 them that I couldn't pay, and they would have had to
8 eaten it.
9 And I would have -- and I could have went out and
10 bought another home and put 20 percent down and had
11 that.
12 But then I would have had to move away from my
13 father which -- and my mother which was very important
14 to me.
15 The third option was to pay down the mortgage on the
16 home, and to do that I had to get the money to do so.
17 And the only revenue that I had or access to money
18 that I -- that I had to pay that down was a loan that I
19 had already provided to JAMD that it was obligated to
20 repay me when I needed it.
21 Q. I'm going to ask you to turn to Exhibit No. 6,
22 please.
23 A. Okay.
24 MS. MOCK: We've stipulated to this,
25 your Honor.
124
2 BY MS. MOCK:
3 Q. Mr. Tarkanian, we talked about Exhibit No. 6 at your
4 deposition.
5 This is a mortgage payment summary that
6 Bank of America has produced in this case concerning the
7 Campbell property.
8 Do you remember talking about this at your
9 deposition?
10 A. Yes.
11 Q. All right. And when you first started making your
12 mortgage payments, for the first five years under the
13 note you had a set interest payment of $3105; is that
14 right?
15 A. Yes.
16 Q. And, of course, you impounded --
17 A. Of -- of --
18 Q. -- tax.
19 A. Of interest.
20 Q. Right. Interest only.
21 A. Yes.
22 Q. Because that was the term of your note, right? It
23 was interest only.
24 A. Yes.
25 Q. And you chose to add the tax escrow to that as many

125
1 people do, but that's what you chose to do; is that
2 right?
3 A. I think the mortgager required it.
4 Q. All right. So looking at Exhibit 6, for the first
5 five years you paid over $3,000 a month on your mortgage
6 payment.
7 A. Yes.
8 Q. Okay. And then turning to page 5 of the exhibit,
9 down around the line for July 30th, 2010, do you see
10 that?
11 A. Yes.
12 Q. Between July 6th, 2010, and July 30th, 2010, do you
13 see that?
14 A. Yes.
15 Q. Under the interest-only column, as soon as the
16 change date occurred under your note, your interest
17 payment for your mortgage dropped to $1552; is that
18 right?
19 A. Yes.
20 Q. And from there -- that happened in July of 2010,
21 correct?
22 A. Yes.
23 Q. But you took no steps in 2010 to try to pay down
24 your mortgage or refinance your home; is that right?
25 A. Yes.
126
1 Q. Okay. And at that point, in July of 2010, you still
2 owed 600 and -- we'll say $648,000 on your note, right?
3 A. Yes.
4 Q. And up to --
5 A. Excuse me.
6 Q. -- July of 2010, you had not paid one penny in
7 principal on your home; is that right?
8 A. Yes.
9 Q. All right. So July, 2010, your mortgage payment
10 drops to 1552.
11 Turning the page, as of February 4th of 2011, your
12 mortgage payment dropped again, did it not?
13 A. Yes.
14 Q. To $1485 --
15 A. Yes.
16 Q. -- in interest? All right.
17 And then for some period of time -- I believe your
18 note was every six months the interest rate changed; is
19 that right?
20 A. Yes.
21 Q. Your payment dropped again as of August 4th, 2011,
22 to $1417.50; is that right?
23 A. Yes.
24 Q. And as of August, 2011, you didn't attempt to pay
25 down any of your home mortgage, correct?

127
1 A. No.
2 Q. And you didn't attempt to refinance your house, did
3 you?
4 A. No.
5 Q. Okay. And as of November 3rd of 2011, going on down
6 page 7, your payment was still the same, 1417; is that
7 correct?
8 A. Yes.
9 Q. And going on down, as of February the 8th, it
10 actually increased a little bit to $1552 for interest;
11 is that right?
12 A. Yes.
13 Q. And as of February, 2008 (sic), 2012 now, I guess
14 six years after you bought the house, you still had not
15 paid one penny in interest on your house; is that right?
17 MS. MOCK: I mean, I'm sorry. I misspoke.
18 BY MS. MOCK:
19 Q. As of February 8th, 2012, you had still not paid one
20 penny of principal on your home; is that right?
21 A. Yes.
22 Q. And even though this is the home that you bought in
23 2005 intending that you would stay there with you and
24 your family until your children were grown and gone; is
25 that right?
128
1 A. Yes.
2 Q. Okay. Turning to page 8 of Exhibit 6, by July of
3 2012, around the time you made the transfers, your
4 payment was down to $1219 a month in interest; is that
5 right?
6 A. That was after the first transfer, yes.
7 Q. And then your payment was further reduced as a
8 result of those transfers down to $869 in interest as of
9 August; is that right?
10 A. I think that would have -- no. There was no other
11 transfer. It just went down.
12 Q. That's because the interest rates kept going down,
13 Mr. Tarkanian?
14 A. Yes.
15 Q. Okay. And the $400,000 in transfers that you made
16 in July and August, that was the first time that you had
17 ever paid any principal at all towards your home; is
18 that right?
19 A. Yes.
20 MS. MOCK: Okay. Your Honor, we'll pass the
21 witness.
22 THE COURT: Okay. Thank you.
24 THE COURT: Mr. Gillman, it's about a quarter
25 'til 12:00.
129
1 Do you want to take a recess for lunch right now and
2 then come back with your -- for cross-examination? What
3 do you want to do?
4 MR. GILLMAN: Well, frankly, I'm going to call
5 him as one of our witnesses in --
6 THE COURT: Okay.
7 MR. GILLMAN: -- chief --
9 MR. GILLMAN: -- and not do cross-examination
10 at this time.
11 THE COURT: Okay.
12 MR. GILLMAN: But it makes sense to come back
13 at 1:00 o'clock.
15 MR. GILLMAN: We are --
16 THE COURT: Well, Ms. Mock, any objection to
17 simply taking our break at this point?
18 MS. MOCK: Whatever the Court pleases is
19 fine --
20 THE COURT: Okay.
21 MS. MOCK: -- with me, your Honor.
22 THE COURT: All right. When we resume,
23 Ms. Mock, who will be your next witness then?
24 MS. MOCK: Jodie Diamant.

130
1 MS. MOCK: I think I've said her name
2 correctly, Diamant.
3 THE COURT: Okay. All right.
5 THE COURT: Mr. Tarkanian, you may step down.
6 MR. GILLMAN: Amy has separate counsel.
7 Just --
9 MR. GILLMAN: I didn't want to --
10 THE COURT: All right. Mr. Zirzow, what is
11 your intention when we get back?
12 MR. ZIRZOW: I would pass the witness, too,
13 your Honor.
14 Thank you.
15 THE COURT: All right. Thank you very much.
16 All right.
17 The Court will be in recess 'til -- Benji, what time
18 is it now?
19 THE CLERK: Well, Mr. -- is 1:00 enough time?
20 MR. GILLMAN: That'll be fine.
21 THE COURT: All right. We'll just go ahead and
22 resume at 1:00 o'clock. That's fine.
23 THE CLERK: 1:00 o'clock, then?
24 THE COURT: All right. We'll be in recess 'til
25 1:00.
131
1 THE CLERK: Thank you --
2 MR. GILLMAN: Your Honor, can we --
3 THE CLERK: -- your Honor.
4 MR. GILLMAN: Can we leave our stuff here?
5 THE CLERK: Yes.
6 THE COURT: Yes. All right.
7 Thank you.
8 We'll be back at 1:00.
9 THE CLERK: All rise.
10 (Court recessed at 11:48:53 a.m.)
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1 I certify that the foregoing is a correct transcript
2 from the electronic sound recording of the proceedings in
3 the above-entitled matter.
6 /s/ Biljana Garotic 05/09/14

_______________________________ ________
7 Biljana Garotic, Transcriptionist Date
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Case 13-20495-mkn Doc 146 Entered 05/13/14 08:50:34 Page 1 of 132

1 UNITED STATES BANKRUPTCY COURT

3 LAS VEGAS, NEVADA

4 In re: ) E-Filed: 05/09/14

23 Court Recorder: Helen Smith

2 For Debtor DUANE H. GILLMAN, ESQ.

5 TIMOTHY S. CORY, ESQ.

8 For Debtor MATTHEW C. ZIRZOW, ESQ.

11 For Federal JANICE MOCK, ESQ.

Cline Transcription Services (702)644-1123

2 Number Description Page

3 Creditor's 22 E-mail from Sherri Weaver 97

1 (Court convened at 9:42:21 a.m.)

2 THE CLERK: All rise.

3 Court is now in session. The Honorable

4 Mike K. Nakagawa presiding.

5 THE COURT: Please be seated.

6 We're here on the matter of Daniel and

8 May I have appearances for the record.

9 MR. GILLMAN: Duane Gillman and Tim Cory for

10 the debtor Daniel Tarkanian.

11 THE COURT: All right.

12 MR. ZIRZOW: Your Honor, good morning.

13 Matt Zirzow with Larson & Zirzow, counsel for

15 THE COURT: Okay.

16 MS. MOCK: Good morning, your Honor.

17 THE COURT: All right.

18 MS. MOCK: Janice Mock on behalf of the FDIC,

19 as the receiver for La Jolla Bank.

20 THE COURT: Okay. All right.

21 Counsel, there were several recent stipulations that

22 were filed with respect to certain of the documents to

23 be admitted into evidence.

24 Were there any additional agreements reached by

1 MR. GILLMAN: Yes, your Honor.

2 THE COURT: All right. Mr. Gillman, can you

3 approach the lectern, please.

4 MR. GILLMAN: I was just --

5 THE COURT: All right.

6 MR. GILLMAN: -- going to, your Honor.

7 THE COURT: Okay. Thanks.

8 MR. GILLMAN: I wanted to bring the exhibits.

9 THE COURT: All right.

10 MR. GILLMAN: The debtor Daniel Tarkanian --

11 THE COURT: All right.

12 MR. GILLMAN: -- and I believe Amy will join in

13 it, has agreed to stipulate to admissibility of FDIC's

14 Exhibits 1 through 20.

15 I will let you speak to -- I believe the FDIC has

16 agreed to stipulate to admissibilities of

17 Daniel Tarkanian's Exhibits A, C, D, E, F, G, H, I, J,

19 THE COURT: All right.

20 MR. GILLMAN: We met yesterday and tried to

21 conform to local rule which encourages us to go over

23 THE COURT: Okay.

24 MR. GILLMAN: -- not fight too much.

25 THE COURT: All right. Fair enough. All

1 right. Then -- all right.

2 So if I understand correctly, Mr. Gillman, the only

3 item in issue amongst the exhibits that were offered by

4 the FDIC is Exhibit 21; is that right?

5 MR. GILLMAN: Correct.

6 THE COURT: Okay. All right. And then -- all