TRG Steve Dalton Powerpoint Presentation

Case 3:15-cv-00057-L-AGS Document 404-7 Filed 04/25/19 PageID.
33897 Page 1 of 465
1 Gerald A. Klein, Esq. (Bar No. 107727)

klein@kleinandwilson.com
2 Michael S. LeBoff, Esq. (Bar No. 204612)
leboff@kleinandwilson.com
3 KLEIN & WILSON
A Partnership of Professional Corporations
4 4770 Von Karman Avenue
Newport Beach, California 92660
5 (949) 631-3300; Facsimile (949) 631-3703
6 Attorneys for Defendant JOHN A. JASTREMSKI and
Defendant and Counterclaimant THE RETIREMENT GROUP, LLC
7
8 UNITED STATES DISTRICT COURT
9 SOUTHERN DISTRICT OF CALIFORNIA
10
11 JEREMY L. KEATING; RICHARD P. CASE NO. 3:15-cv-00057-L-AGS
GIGLIOTTI; and ALEXANDER J.
12
MELE, POWERPOINT PRESENTATION
13 PRESENTED BY DEFENDANT
Plaintiffs, JOHN A. JASTREMSKI AND
14
DEFENDANT AND
15 v. COUNTERCLAIMANT THE
16 RETIREMENT GROUP, LLC, AT
JOHN A. JASTREMSKI; THE HEARING ON MOTION FOR
17 RETIREMENT GROUP, LLC; and TERMINATING SANCTIONS
18 DOES 1-5,
Date: March 4-6, April 15-17, 2019
19 Defendants. Time: 9:00 a.m.
20 Place: Judicate West – San Diego
AND RELATED CROSS-ACTIONS. 402 West Broadway, Suite 2400
21 San Diego, CA 92101
22 ///
23 ///
24 ///
25 ///
26 ///
27 ///
28 ///
418974_1
1
Case 3:15-cv-00057-L-AGS Document 404-7 Filed 04/25/19 PageID.33898 Page 2 of 465
This Is An Extraordinary Case

But For Two Whistleblowers and

Silvers’ Computers, TRG Would Not
Have Known The Truth
This Case Cries Out For Terminating

Sanctions
This Case Involves A Conspiracy To

Steal Trade Secrets And Destroy Any
Evidence Of The Theft
TRG Has Proven It Was The Victim Of

Trade Secrets Theft
Focus Of The Case Has Always Been
Steve Dalton As The Mastermind Of

This Conspiracy
• He received a percentage from each member of the
Keating Group
• He was the one who came up with the plan to target
the Keating Group and move it to SAI
• He was the one who came up with the plan to leave no
footprints in the sand
• He looked at litigation as a “cost of doing business”
about a year before the case was filed
• 25 Point Plan and brush fires
• He was the writer, director, producer and principal
actor of what unfolded
Comparison To Criminal Case

• Cooperating accomplices who turn on each
other
• Allegations they sold their testimony
• Key is corroboration - which is ample
• Dalton’s history of not complying with
discovery
• Witness intimidation
• Holding back opening statement
The Three Controlling Cases Are:

• American Credit Indemnity Co. v. Sacks (1989)
213 Cal.App.3d 622
• Morlife, Inc. v. Perry (1997) 56 Cal. App. 4th
1514
• Keating v. Jastremski (2016) S.D. Cal. WL
5338072
American Credit Indemnity Co. v. Sacks

(1989) 213 Cal.App.3d 622
Niche Market
“It must be concluded the ACI customer
list is ‘information’ which has potential
economic value because it allows a
competitor to direct sales efforts to the
elite 6.5 percent of those potential
customers which already have evinced a
predisposition to purchase credit
insurance.”
Solicitation
“Sacks's March 7 letter went beyond an
appropriate professional announcement
and constituted a solicitation of the ACI
customer list.”
It Is Undisputed The Keating Group

And SAI Solicited TRG Clients Which Is
A Violation Of The CUTSA Under
Morlife and American Credit Indemnity
--
f:rom:
Case 3:15-cv-00057-L-AGS
To:
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Document 404-7 Filed 04/25/19 PageID.33911 Page 15 of 465
bf.tbi!AWllnv@&bceltml.nc:S
Update from Rich;ird Qgiotti ~6 Soa,riU" A.~
Wednud,y, Janl.Qiy l4, 2015 l.;14:00 AM
Dear Samara & Paul,
I want 10 share an impo11ant change I have made with you.
To provide you the highest level of value and service, I've decided to change my
professional affiliation and joined a new group of focused and dedicated professionals at
Securities America loc.
I have not made this decision lightly and only with my clients' interests as my
paramount concern. I selected SA after conducting diligoot research and careful analysis of
many options. I have decided that this is the right decision for my valued clients, such as
you, to ensu.-e the continued high level of service you have come to expect from me.
As you know, the financial advisory world is heavily regulated and requires a
complex infrastructure to comply with the various regulato,y guidelines and ensure the best
quality of service and advice. Securities America is one of the country 's largest independent
broker-dealers with advisors nationwide. It is owned by Ladenburg Thalmann, an investment
banking firm with roots reaching back to I 876. The Firm employs award-winning
technology and is committed to maintaining the trust and confidence of its investor clients.
By joining Securities America, I can offer many of the same investments and some
new options too. This will continue to allow me to truly act independently, putting your
interests first and foremost This change also brings other important and exciting benefits to
our relationship including: a management ream with years of experience building and
supponing advisors and tlteir clients, access to high level planning consultants for estate
planning needs, innovative technology, and access to top investment management solutions
are ju_st a few of the benefits that will help us provide you an even higher level of service and
experience.
In the next several days you will receive a package of information containing all of
the necessary docun1ents to continue your financial advisory relationship with me_ With just
a few signatures and some u dated inforntation, we can continue the relationshi we have
both come to enjoy'..
Best Regards,
Richard P. Gigliotti
lnvestmoot Advisor
CONFIDENTIAL SAl002682
5tA-I
509
Morlife – Leading Case In CA

“Based upon the facts of this case, there is no

doubt Morlife intended its customer
information to remain secret and undertook
steps to secure that end. The company
president recognized the importance of the
customer information to the company
referring to it as its ‘main asset.’ He explained,
‘Without it, there's no business.’ For this
reason customer information was stored on
computer with restricted access.” [Cont.]
“Moreover, in its employment contract signed

by Perry, Morlife included a confidentiality
provision expressly referring to its customer
names and telephone numbers. The Morlife
employee handbook contained an express
statement that employees shall not use or
disclose Morlife secrets or confidential
information subsequent to their employment
including ‘lists of present and future
customers.’”
Rejecting Moss-Adam
“There is no legitimate reason for
characterizing differently the conduct of a
former employee who uses customer
information personally developed for the
employer during the period of employment
from the use of the very same information
developed by a co-worker who had no
customer contact.” [Cont.]
“Creating an artificial distinction between the

conduct of these two employees under the
rubric of commercial impracticality in not
being able to ‘wipe clean’ one former
employee's memory constitutes an unjustified
abandonment of legitimate regulation of
competitive activity, and ignores the
paramount interest in protecting information
meeting the definitional criteria of a trade
secret” [Cont.]
“‘[i]t is this personal acquaintance and

additional influence of the friendship
developed during his employment ... which
makes solicitation of former customers by
appellant so unfair to his former employer.
[Citations.]’ (emphasis in original)”
Keating v. Jastremski (2016) S.D. Cal.

WL 5338072
This Is What Judge Lorenz Had To Say

About This Case…
“It is undisputed that TRG meets the first

prong of the trade secret definition. TRG has
demonstrated its client lists were the product
of substantial time, expense, and effort. (See
JJ Decl. ¶¶ 3–4, 6–7, 10–13.) TRG’s client list
compilations were the result of efforts
including: research, cold calls, personalized
phone calls, targeted email, mail marketing,
seminars, personal meetings, and referrals.
(Id. ¶¶ 10–13.)” [Cont.]
“TRG spends over two million dollars per year

on its marketing and client service efforts.
(See id. ¶ 6.) TRG’s client information has
potential economic value because a
competitor could use it to direct sales efforts
to the “niche” market of clients who will retire
soon, are likely to use the services of a
financial advisor, and represent the top 1-5%
of employees at an employer. (Id. ¶¶ 4, 15–
18.)” [Cont.]
“The TRG's client information was not

accessible to the public or generally known to
others in the industry and there is no public
directory or readily available list containing
the database contents. (Id. ¶ 4.)” [Cont.]
“As to the second prong, the Advisors heavily rely

on The Retirement Group, Inc. v. Galante, 176 Cal.
App. 4th 1226 (2009), to argue that the Broker
Protocol information in FSC's database cannot be
a TRG trade secret as a matter of law. They
interpret Galante to hold that TRG's client
information held by FSC, a third party broker
dealer, was not a trade secret because it was
available to the departing TRG representatives
from FSC.” [Cont.]
“They contend that the information they took,

which they had used to service TRG clients as
RRs of FSC, was ‘separate from TRG, and [they]
took that information only from [FSC’s]
records that were separate, distinct, and
independent of, and not controlled or
maintained by, TRG,’ and thus, cannot be a
protectable TRG trade secret.” [Cont.]
“However, Galante did not decide this issue,

as it was conceded. See, Galante, 176 Cal.
App. 4th at 1240 (‘TRG did not dispute that
the [client information was] readily available
to Advisors from independent third party
sources such as [their employer as well as
other sources].’). *5” [Cont.]
“In the present case, TRG has shown it had

created a different business structure as well
as substantially different contracts, splash
screens, privacy policies, systems, and
protections, in response to the Galante
decision. (JJ Decl. ¶¶ 34–35.)” [Cont.]
“The MLA agreements at issue in Galante

were changed substantially, and the Corporate
Online User Agreement, splash screen, and
TRG Privacy Policy are all new. (Id. ¶ 35.)”
Is The Customer List In Salesforce A

Trade Secret?
The Keating Group Admits It Is (As

Does Dalton) And Says Their Database
Is A Trade Secret
Keating, et al. v Jastremski, et al. Jeremy Keating
17-100 Confidential 01/09/2017
·1· personally get a share?

·2· · · ·A· ·Yes.
·3· · · ·Q· ·How did that work?
·4· · · ·A· ·I'm not exactly sure a hundred percent how
10:03 ·5· it works.· My belief is a commission's generated, it
·6· went to FSC compliance or commissions, and a portion
·7· would go to me and a portion would go to John.
·8· · · ·Q· ·So FSC would send a portion of that
·9· commission to you and a portion of that commission
10:03 10· would go to John -- to TRG --
11· · · ·A· ·Yes.
12· · · ·Q· ·-- is that right?
13· · · · · ·And at the end of the year, regrettably so,
14· I would imagine some type of tax document gets
10:03 15· generated from FSC; is that right?
16· · · ·A· ·Yes.
17· · · ·Q· ·And that would -- one document would go to
18· you for what you'd collected; correct?
19· · · ·A· ·Yes.
10:03 20· · · ·Q· ·And one would go to TRG for whatever it
21· collected; right?
22· · · ·A· ·That would be the assumption, yes.
23· · · ·Q· ·Now, did you ever consider the TRG database
24· to be a trade secret?
10:04 25· · · · · ·MR. REYNOLDS:· Calls for a legal conclusion.
Orange County Depositions ·70

(714) 838-9119 YVer1f
·1· · · · · ·You can answer.

·2· · · · · ·THE WITNESS:· Yes.
·3· BY MR. KLEIN:
·4· · · ·Q· ·Why?
10:04 ·5· · · ·A· ·Because it had private data on it.
·6· · · ·Q· ·Well, aside from the fact that it had
·7· private data that was private to individual
·8· customers, did you ever consider it to be something
·9· that was valuable to TRG?
10:04 10· · · ·A· ·Yes.
11· · · ·Q· ·Have you ever sworn under oath that it was?
12· · · ·A· ·I don't recall.
13· · · · · ·MR. KLEIN:· I'm going to mention this now.
14· · · · · ·We are on a seven-hour clock.· I've talked
10:04 15· to your counsel about -- and we'll -- we'll have
16· discussions about whether we get -- get to do this
17· again or not, and that's something we don't have to
18· worry about today.· I'm going to use our full time
19· today, but, that being said, you know, I don't want
10:04 20· you to suffer; I don't want anybody -- our people
21· here to suffer, so if you want to take -- whenever
22· you want to take a break, we -- we will, but I'm
23· going to plow through --
24· · · · · ·MR. REYNOLDS:· Yeah.
10:05 25· · · · · ·MR. KLEIN:· -- until you or one of the

(714) 838-9119 YVer1f
Keating, et al. v Jastremski, et al. Alexander Mele
·1· · · · · ·MR. EDGERTON:· Objection.

·2· · · · · ·MR. REYNOLDS:· Calls for --
·3· · · · · ·MR. EDGERTON:· -- calls --
·4· · · · · ·MR. REYNOLDS:· -- a legal conclusion.
11:08 ·5· · · · · ·THE WITNESS:· Yeah, I don't I --
·6· · · · · ·MR. EDGERTON:· Join.
·7· · · · · ·MR. HALL:· Join.
·8· · · · · ·THE WITNESS:· I think if I gave one, I do
·9· not believe it would be very accurate.
11:08 10· BY MR. KLEIN:
11· · · ·Q· ·Did you ever come to the conclusion that TRG
12· had ways of doing business that were valuable to TRG
13· and not generally known to its competitors?
14· · · ·A· ·No, 'cause -- no.
11:08 15· · · ·Q· ·Well, what about the database?· Do its
16· competitors have access to the TRG database?
17· · · ·A· ·Not his -- not his dat- -- not TRG's
18· database.
19· · · ·Q· ·Right.· And did you ever come to the
11:08 20· conclusion that that TRG database was valuable?
21· · · ·A· ·Yeah.
22· · · ·Q· ·When you were working at TRG, did you have
23· set hours?
24· · · ·A· ·There was no set hours.· There was you're in
11:08 25· trouble if you're not in at a certain time, so it --

(714) 838-9119 YVer1f
What Makes Salesforce A Trade
Secret?
• Extreme niche market – less than 1% of
population
• Retirees in targeted Fortune 500 companies who
still have retirement plans and provide lump sum
distributions
• No list identifies who these people are
• They must meet the following narrow criteria:
– $800,000 in assets
– Retired or about to retire
– Willing to pay for the services of a financial advisor
Jastremski Described In Detail
Everything That He Had To Do To Build

His Database Over Many Years
• Millions of dollars of investment over decades
• Hiring people to cull through lists
• Cold calls
• Mailers
• Seminars
• Follow-up, follow-up, and follow-up
• Construction of a database for subsequent
contacts
To The Extent The Keating Group

Benefits From Theft Of Trade Secrets,
So Does Dalton
The Keating Group Came With No

Book Of Business
Keating Spent Years In Financial

Industry But Had No Book Of Business
·1· · · ·A· ·Not to my recollection.

·2· · · ·Q· ·Is there anything -- I'm a little confused
·3· by the answer, so let me follow up on that.
·4· · · · · ·Do you -- do you remember having any
09:20 ·5· discussions about a 25 point plan as it related to
·6· TRG?
·7· · · ·A· ·I don't remember anything of that, of a
·8· 25 point plan at all.
·9· · · ·Q· ·When'd you meet John Jastremski?
09:21 10· · · ·A· ·2005.
11· · · ·Q· ·What were the circumstances?
12· · · ·A· ·He was recruiting me.
13· · · ·Q· ·To do what?
14· · · ·A· ·To work at his firm as a financial advisor.
09:21 15· · · ·Q· ·Did you bring any clients to TRG?
16· · · ·A· ·No.
17· · · ·Q· ·Was one of your jobs to help TRG find
18· prospects and turn them into clients for TRG and for
19· yourself?
09:21 20· · · ·A· ·Yes.
21· · · ·Q· ·Did you receive any accounts or customer
22· lists from TRG at any time?
23· · · ·A· ·Yes.
24· · · ·Q· ·Do you have an estimate as to how many?
09:21 25· · · ·A· ·No.

(714) 838-9119 YVer1f
…But Leaves With Almost

$200MYN AUM [R.T. 162:18-20]
1 you joined TRG was zero?
2 A. "Was zero."
3 End of audio playback.)
4 MR. KLEIN: I'd like to play Mr. Mele, page 56,
5 lines 16 through 22.
6 (Audio played and stenographically recorded as
7 follows:
8 BY MR. KLEIN:
9 Q. "So in 2009, when you started, you were making
10 about $30,000 a year. Is that roughly accurate?
11 A. "Around there. A little -- yeah.
12 Q. "And at the end of 2014, the first week or so
13 in 2015, by that time your income had grown to 175; is
14 that right?
15 A. "Estimate, yes."
17 BY MR. KLEIN:
18 Q. When Mr. Keating left your firm, what were his
19 assets under management?
20 A. Roughly 200 million.
21 Q. And he came with how much?
22 A. He came with zero.
23 Q. And how much of those assets were assets you
24 gave to him from other account reps?
25 A. Just assigned to him?
Page 162
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Gigliotti Spent Years In Financial

Industry But Had No Book Of Business
Keating, et al. v Jastremski, et al. Richard Gigliotti
·1· there.
·2· · · ·Q· ·So you knew Jeremy Keating from high school;
·3· right?
·4· · · ·A· ·That's true.
09:19 ·5· · · ·Q· ·And you knew Lloyd Silvers as well?
·6· · · ·A· ·I knew Lloyd Silvers, correct.
·7· · · ·Q· ·And the three of you remained friends even
·8· while you were at TRG; correct?
·9· · · ·A· ·I mean, we weren't really friends.· We just
09:19 10· knew each other.
11· · · ·Q· ·And when you moved to TRG, I think you said
12· you didn't have a book of business at the time;
13· right?
14· · · ·A· ·That's true.
09:19 15· · · ·Q· ·And did TRG help you in finding prospects in
16· building a book?
17· · · ·A· ·I would say they -- yeah, they did help me.
18· · · ·Q· ·Did you inherit any accounts from other
19· advisors?
09:19 20· · · ·A· ·Yeah.· There was one advisor that left. I
21· think I got some of his accounts.
22· · · ·Q· ·How'd you get those accounts?
23· · · ·A· ·Mr. Jastremski needed somebody to service
24· them.· I used to work in the same area where he
09:19 25· worked so he said, "Service these clients."

(714) 838-9119 YVer1f
…But Leaves With Almost $50MYN

AUM [R.T. 163:4-6]
1 Q. Yes.
2 A. I gave him 80 million in assets that it took me
3 about five minutes to give him access.
4 Q. When Mr. Gigliotti left, how much did he have
5 under management?
6 A. Roughly, estimate, around 40 million.
7 MR. KLEIN: I'd like to play Mr. Mele's
8 deposition, page 27, lines 23 through 25; page 31, lines
9 19, to 32, line 4; and page 224, lines 19 to 21.
11 follows:
12 BY MR. KLEIN:
13 Q. "So out of school, you went to the bar and
14 grill, then to The Retirement Group?
15 A. "Correct.
16 Q. "Prior to joining The Retirement Group, what
17 type of contacts did you have with employees or
18 personnel at Verizon other than calling up and
19 complaining about your phone bill?
20 A. "I -- in terms of the relationship as an
21 advisor?
22 Q. "Yes.
23 A. "None.
24 Q. "How about at Merck; what kind of experience
25 did you have working with people at Merck?
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Mele Was A Bartender

·1· · · ·Q· ·You went to Manhattan College; right?

·2· · · ·A· ·Correct.
·3· · · ·Q· ·And what year did you graduate with a degree
·4· in finance?
09:20 ·5· · · ·A· ·2009, but I needed another credit, so just a
·6· month after, after I finished a class.
·7· · · ·Q· ·I still have nightmares about that.
·8· · · · · ·And so you graduated in '09.· What was your
·9· first job coming out of school?
09:20 10· · · ·A· ·I went back to a job I had held occasionally
11· at a bar and grill back in my hometown.
12· · · ·Q· ·And how long did you stay at the bar and
13· grill?
14· · · ·A· ·Three months.· It was seasonal, so I believe
09:21 15· it closed.
16· · · ·Q· ·So I take it that was a summer job?
17· · · ·A· ·Yeah, to save some money.
18· · · ·Q· ·And after leaving the -- the bar and grill,
19· where'd you go next for employment?
09:21 20· · · ·A· ·That was in western New York.· I had moved
21· to San Diego, so The Retirement Group would have been
22· the next.
23· · · ·Q· ·So out of school you went from the bar and
24· grill, then to The Retirement Group?
09:21 25· · · ·A· ·Correct.

(714) 838-9119 YVer1f
…But Leaves With Over $30MYN AUM

[R.T. 164:8-10]
1 A. "None.
2 Q. "And the assets you had under management before
4 A. "Was zero."
6 MR. KLEIN: I'd like to play -- sorry.
7 BY MR. KLEIN:
8 Q. How much did Mr. Mele leave your company in
9 terms of assets under management?
10 A. Approximately 32 million.
11 MR. KLEIN: I'd like to play Mele, page 48,
12 line 24, to 49, line 5.
14 follows:
15 BY MR. KLEIN:
16 Q. "Now, you said that one of your focuses at TRG
17 was Verizon and Merck?
18 A. "Correct.
19 Q. "Is that still your focus to this day?
20 A. "I have clients, but -- from Verizon and Merck.
21 That's still -- that's still probably the majority of my
22 client base."
24 BY MR. KLEIN:
25 Q. When Mr. Keating left your company, what was he
Page 164

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…By The Time They Left

• Keating making over $1MYN per year [R.T.
164:25-165:1]
• Gigliotti making six figures [R.T. 165:3-5]
• Mele making six figures [R.T. 165:3-5]
…All Coming From The Salesforce
Database
1 A. "None.
2 Q. "And the assets you had under management before
4 A. "Was zero."
6 MR. KLEIN: I'd like to play -- sorry.
7 BY MR. KLEIN:
8 Q. How much did Mr. Mele leave your company in
9 terms of assets under management?
10 A. Approximately 32 million.
11 MR. KLEIN: I'd like to play Mele, page 48,
12 line 24, to 49, line 5.
14 follows:
15 BY MR. KLEIN:
16 Q. "Now, you said that one of your focuses at TRG
17 was Verizon and Merck?
18 A. "Correct.
19 Q. "Is that still your focus to this day?
20 A. "I have clients, but -- from Verizon and Merck.
21 That's still -- that's still probably the majority of my
22 client base."
24 BY MR. KLEIN:
25 Q. When Mr. Keating left your company, what was he
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866 299-5127
1 making in terms of annual income?
2 A. Net in his pocket, over a million per year.
3 Q. And what were Mr. Gigliotti and Mr. Mele
4 making?
5 A. A couple hundred thousand a year each.
6 Q. Now, based on your experience of being an
7 advisor all these years, is there any way these guys
8 would have left and gone into business without their
9 database?
10 MR. ZUSMAN: Objection; calls for speculation.
11 SPECIAL MASTER: Can you rephrase that?
12 MR. KLEIN: Sure.
13 BY MR. KLEIN:
14 Q. Based on your experience as someone who's
15 worked with customers and served as an advisor, would
16 you have ever left without your database and gone to
17 another company?
18 A. No.
19 Q. Why not?
20 A. As I mentioned earlier, number one, from a
21 regulatory and a fiduciary standpoint, you can't look at
22 the client in the eyes and tell them that you have
23 access to all their information and you're going to take
24 care of them and provide services that's in the best
25 interest of the client without having access to that
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Came In With Nothing… They Leave
With Everything
• Keating pays nothing for $197MYN AUM
• Mele pays nothing for $32MYN AUM
• Gigliotti pays nothing for $44MYN AUM
FSC’s Regulatory Obligation To Have

Basic Customer Information Does Not
Convert Salesforce Into “Publicly
Available Information”
Law Is Clear: Security Steps Must Be
Reasonable, Not Ft. Knox

• “The courts do not require that extreme and unduly
expensive procedures be taken to protect trade secrets
against flagrant industrial espionage.” Legis. Com. com.,
12A West’s Ann. Civ. Code (1984 ed.) foll. § 3426.1, p. 239.
• “‘[R]easonable efforts to maintain secrecy have been held
to include advising employees of the existence of a trade
secret, limiting access to a trade secret on “need to know
basis,” and controlling plant access.’” Whyte v. Schlage
Lock Co. (2002) 101 Cal.App.4th 1443, 1454 [quoting Legis.
Com. com., 12A West's Ann. Civ. Code (1997 ed.) foll. §
3426.1, p. 239].
• Pyro Spectaculars North, Inc. v. Souza (E.D. Cal. 2012) 861
F.Supp.2d 1079, 1091 [noting employer need not build an
“impenetrable fortress” of security
Every Member Of The Keating Group

Admitted TRG Security Very Tight
Which Was Why It Took Months To
Take Information Without Raising
Alarm
·1· · · ·Q· ·Did he tell you he'd been talking to

·2· somebody from Ardent?
·3· · · ·A· ·I don't believe Ardent ever came up.
·4· · · ·Q· ·Did he tell you he had talked to Dalton?
10:27 ·5· · · ·A· ·I don't believe I remember Dalton's name
·6· ever coming up, either.
·7· · · ·Q· ·Did the three of you at that point discuss
·8· the possibility that you might all leave together?
·9· · · ·A· ·It was a possibility, but, you know, I think
10:28 10· Jeremy and I didn't want to probably leave that soon,
11· and Alex was, you know, had -- was just determined to
12· leave sooner, so he may have -- going to leave in
13· January and me and Jeremy may have not left until,
14· you know, mid year.
10:28 15· · · ·Q· ·Did Alex Mele say why he wasn't going to
16· leave that day?
17· · · ·A· ·He pretty much did say he was going to leave
18· that day, but it takes a little bit of time to
19· prepare and, you know, get your protocol list in
10:28 20· order and hire legal counsel, and we knew this was
21· going to end up in a lawsuit 'cause John sues
22· everybody.
23· · · ·Q· ·All right.· Well, you could get the protocol
24· list anytime you wanted, couldn't you?
10:28 25· · · ·A· ·Yeah, but why would you ever get it? I

(714) 838-9119 YVer1f
·1· mean, John would watch your computer.· If I went on

·2· there and downloaded a protocol list on my laptop and
·3· John saw that, I'd be in his office immediately and
·4· he'd be questioning me.
10:28 ·5· · · ·Q· ·Well, yeah, but you could just call FSC and
·6· say, "I want my protocol list"; right?
·7· · · ·A· ·I don't know that there's a number you can
·8· call to get a protocol list.
·9· · · ·Q· ·Well, you could say -- you go to FSC and
10:29 10· say, "I want my protocol information"; right?
11· · · ·A· ·I think I can go on Vision 20/20, log in and
12· get the protocol list, but I don't know -- if I
13· called FSC, they probably would have given it to me,
14· but he had a pretty good relationship with, you know,
10:29 15· the president, Jerry Murphy, and from what I saw, a
16· lot of things were leaked back to him, so I think
17· that Jerry Murphy would have just called him and
18· said, "Richard just asked for his protocol list.· You
19· better go look at him."
10:29 20· · · ·Q· ·All right.· But you could have left.· You
21· could have said, "I quit," called up FSC and go,
22· "I -- I need the protocol information for each of
23· these following customers"; right?
24· · · ·A· ·I probably could have done that, yes.
10:29 25· · · ·Q· ·But you didn't?

(714) 838-9119 YVer1f
·1· · · ·Q· ·It's right on point, isn't it?

·2· · · ·A· ·I mean, he's -- he's -- he's a -- yeah. I
·3· don't know.· He's just a tough --
·4· · · ·Q· ·Vindictive?
10:24 ·5· · · ·A· ·He's a tough guy to work for.
·6· · · ·Q· ·He's vindictive?
·7· · · ·A· ·I would say, yeah, probably.
·8· · · ·Q· ·And has a -- puts a high premium on loyalty;
·9· right?
10:24 10· · · ·A· ·I wouldn't call it "loyalty," but -- he puts
11· a high premium on himself.
12· · · ·Q· ·All right.· But you're either on his side or
13· against him, pretty much; right?
14· · · ·A· ·I would say that's probably pretty accurate.
10:24 15· · · ·Q· ·And there was no doubt in your mind, and/or
16· in your discussions with Mr. Mele -- strike that.
17· · · · · ·When you were having these discussions with
18· Mr. Mele, is it true that both of you expressed to
19· the other that the minute John knows you're on the
10:25 20· way out, the very first thing he's going to do is
21· shut you off of the com- -- of your com- -- of your
22· computer database; right?
23· · · ·A· ·I would believe he would probably shut our
24· access down and fire us, yes.
10:25 25· · · ·Q· ·Right.· And then that would be the second

(714) 838-9119 YVer1f
The Law Requires The Broker Dealer To

Have Basic Information About
Customers To Place Those Trades
Keating v. Jastremski (2016) S.D. Cal.

WL 5338072
What Judge Lorenz Says About Fact

FSC Has Some Of TRG’s Data
“TRG’s evidence shows that all client

information provided to FSC was created
directly by the efforts of TRG, shared and
maintained under strict TRG control, and
shared for the sole purpose of advancing
TRG’s business. (JJ Decl. ¶¶ 21–22, 39; Decl. of
Mary Simonson (“Simonson Decl.”) [Doc. 51–
3] ¶¶ 7–8.)” [Cont.]
“No TRG advisor in the capacity as an FSC RR

was able to gain access to any of TRG’s data on
FSC’s databases until he or she had entered
into several agreements with TRG, including
the Corporate Online System User Agreement
which requires advisors to maintain the
confidentiality of TRG’s trade secrets on FSC’s
databases. (Id.)” [Cont.]
“In addition, each time an advisor accesses

TRG client information on an FSC database,
the advisor is confronted with a ‘splash
screen,’ stating, among other things, that
access is being granted only by the pre-
authorization of TRG and that accessing the
information through a third party database
‘does not invalidate the trade secret nature of
the database.’” (Id.) [Cont.]
“TRG further controlled access to its

information on FSC databases by requiring
that usernames and passwords be pre-
approved by TRG. (Id.)” [Cont.]
“The usernames and passwords could be

terminated by TRG at any time. (Id.) Advisors
could not perform services for non-TRG clients
at FSC or access any client information other
than for the clients assigned to them by TRG.
(Id.)” [Cont.]
“Furthermore, advisors' RR relationships with

FSC were conditional upon a concurrent
contractual relationship with TRG. (Id.) Thus
when an advisor’s TRG relationship is
terminated, the RR status with FSC and access
to TRG information on FSC’s databases were
likewise terminated. (Id.)”
FSC Assured TRG It Would Keep Its
Information Confidential
• “FSC’s adherence to the Protocol is not intended
to interfere with or modify or terminate
agreements and obligations and liabilities which
Independent Contractor Financial Advisors may
reach among themselves separate and apart from
FSC.” (Declaration of Jerome Murphy, Ex 334, Par
4)
• “When TRG shares its customer data with FSC,
FSC keeps that information confidential to TRG
(subject to regulatory requests or court order).”
(Declaration of Mary K. Simonson, Ex 315, Par 7)
,I ! .
• .. ...:·. •.,;.7... - ~ ......... ~..~ - · ;-;.....-';. •
./
·• • ••V •• • ~- • ~
EILEEN M. DIEPENBROCK (CA·sm,fl i 9254) -.. ·- .

l . ~·.... - . . . . -..
GENE·K. CHEEVER (CA SBN 148063)
2 JONATHAN R. MARZ (CA SBN 221188)
DIEPENBROCK ELKIN LLP
3 500 Capitol Mail, Suite 2200
Sa..cramento, CA 95814 - .. ···. ..·-'
4 Telephone: (916) 492-5000
Facsimile: (916) 446-2640
5 -emd@diepenbrock.com
gkc@cliepenbrock.com
6 ddiepenbrock@diepenbrock.com •
7 RICHARD A LUCAL (CA SBN 143372)
LAW OFFICES OF RICHARD A. LUCAL
8 420 S. Broadway, Suite 101
Escondido, CA 92025
9 Telephone: (760) 741-8i41
Facsimile: (760) 741-8145
IO ral@looral.com
11 Attorneys for Plaintiff THE RETIREMENT GROUP, LLC
12
SUPERIOR COURT OF THE STATE OF CALIFORNIA
13 .
·· ~·: ··--IN A-ND ·FORTHE·COl:JNTY OF -SAN DIEGO, CENTRAL BRAN.CH-..._. . ..,___ .,
14
15 THE RETIREMENT GROUP, Lie., A
California Limited Liability Company, CASE NO. 37~2015-00001751 CU~BC-CTL
·16
Plaintiff,~·-···
17 ·
vs. . DECLARATION OF JERRY MURPHY IN .
18 SUPPORT OF EX PARTE APPLICATION
JEREMY KEATING, an individual; RICHARD FOR TEMPORARY RESTRAJNING
19 GIGLIOTTI; an individual; ALEXANDER ORD.ER, ORDER TO SHOW CAUSE RE:
. MELE, an individual; · SECURITIES PRELIMINARY I:!>.;IJ.P.NC_TION AND
20
AMERICA, INC., a Delaware Corporation; EXPEDITED DISCOVERY
21 JOHN DAVENPORT, an individual; s·EAN
SULLIVAN, an individual; LLOYD SILVERS, Date: February 3, 2015
22 an individual; ARDENT RETIREMENT Time: 8:30 a.m.
PLANNING, LLC., a limited liability company;
23 .and DOES 1 tlu:ough 25, inclusive, Complaint filed: 1/ 16/2015
24 Dept: C-72
... ~.._,............ . . .~
Defendants _Judge: Hon. Timothy Taylor
..·..
<;"~-
· • r,v .•,. • ,
.. ·-- ~ ·- ..-,
25 Trial Date: None Set
26
27
28
DIEPENBROCK
MURPHY DECL. lSO EX PARTE APP FOR TRO AND OSC RE PRELIMINARY
ELKIN LLP
. . ·---·- PA(:,cc 1:1~1 ,.,'"·,;--·
ti-< ....
,,,. ·: .'.e210i1..20is. 11:44 :,109naa11 ·
,cDECLARATION OF .TERRY M,URPHY '. ..
2
I, .TERRY MURPJfX, declare as follows: . _
3 1. I am over the: age of 18 1111.d a.resident of the Stat~ofGeo{.µa. ·-i b~~e p~nal .
. • 4 knowledge of the information com:ained in thi::I declaratioti. and could prd ·de competent testimony
5 at a hearing or trial.
6
. 2. Jam President and Chief Executive Officer ofFSC Sectiri ies Corporation ("FSC") .
7-
As such, I am familiar with the business l'clationship between FSC end Retireto.ent Group LLC
8
9 ('"TR.G").
10_ 3. PSC is an SEC-registered. broker deal.er in the b\1$iru:ss of, ·ng the securities-
·,
11 i'elated needs of.retail and institutional account holders. FSC carries the s · unties licenses and
12 registratio~ for Financial Advisors who conduct their securities business L Independent
·· · -, · 13 Con.tractors ofFSC. ·talso11Iidel'$Ullld tb8t Rie Retirement Group ("lRG', ,is.a.network of

14
Registered Financial Advisors, affiliated as Independent Contractors with 1:SC, and maintaining
15
their securities licenses with FSC.
JG .. , -:
17
4. ·FSC is a sigv.at~ry to the Securities Industry "Protocol for . rok~ Recruiting'' (the
18 "Protocol"). I-J.owever, FSC' s adherence to the Protocol is not intended to I rtetfere with or modify
19- ot tennuiate agr.eements and obligations and liabilities which Independent! ~ontractor Financial
20 Advisors may reach-among themselves separate and apart fl:om FSC.

21 FSC adheres to and complies with all fedetal, state and sectj 'ties industry rules
5.
22
respecting the confi!fenti.ality of client inf.onnation,
23
I declare under penalty of perjury of California law that this Deel
24
;iJ Acourate.. . .-.· . . .
26
27
28
,\
Case 3:15-cv-00057-L-JMA Document 51-3 Filed 08/17/15 Page 1 of 3
1 Eileen M. Diepenbrock, Esq. (Bar No. 119254)

ediepenbrock@diepenbrock.com
2 Gene K Cheever, Esq. (Bar No. 148063)
gcheever(a),diepenbrock.com
3 Jonathan lt Marz, Esq. (Bar No. 221188)
jmarz(a),die})enbrock.com
4 DIEPE:'NBROCK ELKIN LLP
500 Capitol Mall, Suite 2200
5 Sacramento, CA 95814
Tel: (916) 492-5000; Fax: (916) 446-2640
6
Scott L. Metzger, Esq. (Bar No. 89718)
7 metzger(a),dsmw. com
Wilham'P. Keith, Esq. (Bar No. 270587)
8 keith(a),dsmw.com
DUCKOR SPRADLING METZGER & WYNNE
9 A Law Corporation
3043 Fourth Avenue
10 San Diego, California 92103
Tel : (619) 209-3000; Fax: (619) 209-3043
11
Attoll!e_ys for Defendant,
12 THE RETIREMENT GROUP, LLC
13
UNITED STATES DISTRICT COURT
14
SOUTHERN DISTRICT OF CALIFORNIA
15
JEREMY L. KEA TING· CASE NO.: 3: l 5-cv-00057-L-JMA
16 RICHARD P. GIGLIOTTI; and
ALEXANDER J. MELE,
17 DECLARATION OF MARY K.
Plaintiffs, SIMONSON IN SUPPORT OF THE
18 RETIREMENT GROUP, LLC'S
V. OPPOSITION TO PLAINTIFFS'
19 MOTION FOR PARTIAL SUMMARY
JOHN A. JASTREMSKI; JUDGMENT
20 THE RETIREMENT GROUP,
LLC,; and DOES 1-5 , Judge: Hon. M. James Lorenz
21 Courtroom: 5B
Defendants.
22 Action Filed: January 12, 2015
Trial Date: None Set
23
- -- -- - - -- -- - - - i Hearin!! Date: Au!!ust 24. 2015
24
AND ALL RELATED
25 COUNTERCLAIMS AND THIRD-
P ARTY CLAIMS
26 EXHIBIT .,_<~"-)-=--
WIT: _ _ __
27 Ill DATE: _ __
Sommer Greene, APR, CAR
28 Ill
DECLARATION OF MARY K. SIMONSON IN SUPPORT OF TRG'S OPPOSITION
TO PLAINTIFFS ' MOTION FOR PARTIAL SUMMARY JUDGMENT
1235013vl Case No. 3:15-cv-000S7-L-JMA
1 I, Mary K. Simonson, declare as follows:
2 1. I am over the age of 18 and a resident of the State of Arizona. I have

3 personal knowledge of the facts set forth in this declaration, and if called upon to
4 testify, I could and could competently testify thereto. I make this declaration in
5 support of TRG's Opposition to Plaintiffs' Motion for Partial Summary Judgment.
6 2. I am the Chief Compliance Officer for AIG Advisor Group, the parent
7 company of FSC Securities Corporation ("FSC"). FSC is an SEC-registered
8 broker-dealer in the business of serving the securities-related needs of retail and
9 institutional account holders.
10 3. I am familiar with FSC' s databases, accessed through a portal called
11 Vision 2020, as well as the process and policies at FSC concerning how data is
12 entered into those databases, and how and by whom it can be accessed.
13 4. I am also familiar with the business relationship between FSC and The
14 Retirement Group, LLC (" TRG"). TRG is a registered investment advisor firm
15 ("RIA"), which employs as independent contractors several financial advisors.
16 5. TRG, as well as other RIA firms, use the services of FSC to perform
17 investment activities for their customers. In order to do so, the advisors are
18 required to register their securities licenses with FSC. As such, several TRG
19 advisors have their licenses registered with FSC.
20 6. In order to perform investment activities for an individual or entity,
21 FSC is required by law to obtain certain information on that person, which it
22 maintains in its database.
23 7. When TRG shares its customer data with FSC, FSC keeps that
24 information confidential to TRG (subject to regulatory requests or court order).
25 8. TRG advises FSC as to which of its advisors have access to its client
26 information that is shared with FSC. Only those advisors so authorized by TRG
27 may access the information7
28 9. I understand that prior to January I 0, 2015, Jeremy Keating, Richard
- 1-
DECLARATION OF MARY K. SIMONSON IN SUPPORT OF TRG'S OPPOSITION
TO PLAINTIFFS ' MOTION FOR PARTIAL SUMMARY nJDGMENT
123 5013v I Case No. 3: I 5-cv-00057-L-JMA
1 Gigliotti and Alexander Mele were advisors with TRG. FSC did not give these
2 advisors any TRG client information when they left TRG, and FSC did not give
3 these advisors permission to take any TRG client information when they left TRG.
4 10. Upon TRG's request, FSC turned off all access Mr. Keating, Gigliotti,
5 and Mr. Mele had to FSC's databases.
6 11. FSC adheres to and complies with all federal, state and securities
7 industry rules respecting the confidentiality of client information.
8 I declare under penalty of perjury under the laws of the United States and the
9 State of California that the foregoing is true and correct.
10 Executed this 13 th day of August, 2015, at Minneapolis, Minnesota.
11
12
13
14 Mary K. Simonson
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-2-
DECLARATION OF MARY K. Sil'v1ONSON IN SUPPORT OF TRG'S OPPOSITION
TO PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT
1235013vl Case No. 3:15-cv-00057-L-JMA
Regulation SP Prohibits FSC From

Disclosing This Customer Information
Based Upon Securities Law And FSC’s

Assurances, TRG Had A Reasonable
Expectation That Its Information
Would Be Protected
Only Authorized TRG Reps, FSC And

Potentially Regulatory Agencies Would
Know This Information – Not
Competitors
FSC Specifically Advised Its Brokers

That TRG’s Contractual Obligations
Could Supersede FSC’s Privacy Policy
-FSC
SECURITIES CORPORATION
Uncommonly Committed-
January 20, 20 l 5
Jeremy Keating
13232 Sunset Point Way
San Diego, CA 921 30
RE: TERMINATION OF AFFILIATION
Dear Jeremy,
Please accept this letter as notification of the tennination of your affiliation with FSC Securities
Corporation ("FSC") as of January 15, 2015. Enclosed is a copy of the Fom1 US Tennination
Notice, which we have filed with FINRA confirming your tennination.
Client Accounts
In order to comply with industry policy, we must ensure that an active Associate is assigned to
accounts. We therefore require that you transfer your customer accounts to your new £inn within
ninety (90) days of your tennination. Any individual contract that you may have with your
OSJ/MF A may supersede this policy. Jf transfer has not been initiated within this period, your
accounts may be re-assigned.
Prohibited Practices
On the effective date of your tem1ination, you may no longer represent yourself as a registe red
representative or agent of FSC Securities Corporation. You should immediately destroy all
advertising material, business cards, and stationary that implies a relationship with FSC Securities
Corporation. When dealing with clients, any misrepresentation of your relationship with FSC could
be a violation of securities regulations and potentially result in regulatory action or civil litigation.
Trading Activity in Client Accounts

Once your affiliation is tenninated , your client accounts will be restJ.icted to the execution of market
liquidations and, if applicable, the closing of any open option positions. In addition, new purchases
will not be permitted and any unexecuted open orders will be canceled. In order to facilitate the
pern1issible trading activity as outlined above, the client may contact the Trading Desk to fulfi ll trade
requests at (800) 743-7676.
Debit Balance
Your commission account may not currently have a debit account; however, should one occur, you
will be required to remit full payment. Collection efforts will be made for non-payment of debit
balances and additional fees may be assessed. Failure to satisfy this obligation will be reported to a
credit bureau and may adversely affect your credit rating. In addition, your Fonn US will be
amended with FINRA to indicate that a debit balance remains outstanding.
which you passed qualification exams, remain valid for two (2) years
:ttion. If you fail to register with anoilier securities firm during tl1is ti.me,
FSC Securities Corporation I 2300 Windy Ridge Parkway I Suite 1100 I Atlanta, GA 303391800-547-2382
Securities and investmenl advisory services offered lhrough FSC Securities Coiporation, t.'ember FINRA, SIPC. SEC.reijstered investment adviser.
357 -1
-FSC
Uncommonly Committed-
you will be required to re-qualify by examination for such licenses. The two-year period currently
granted by the regulatory agencies is subject to change without notification.
Technology Vision 2020/Net X Pro

If applicable, systems and technological support available via FSC will be terminated as of your
termination date.
Signature Guarantee Stamp

If you have a Signature Guarantee Stamp, you are prohibited from utilizing it beyond your
tennination date. Please return your Signature Guarantee Stamp immediately in order to avoid any
derogatory statement on your fonn U5 for failing to comply ·with this request. FSC may assess a
$500 fee should you fail to comply with this request within thirty (30) calendar days. You are
required to return your Signature Guarantee Stamp to the Home Office to the attention of the
Registration Department.
Record Retention Requirements (for OSJ Managers)

Under state and federal securities regulations, FSC has the responsibility to maintain access to certain
records relating to its business for various times periods. FSC requires its offices of supervisory
jurisdiction to maintain and retain certain records to comply with these requirements. OSJ Managers
must adhere to this requirement based on their contractual obligations with FSC. OSJ Managers are
obligated to maintain the records for the requisite period (s) of time and make them available to FSC
upon request. Or, at the OSJ Manager' s e lection and expense, the OSJ Manager can provide original
or copies of the records to FSC upon disassociation with the finn .
Maintaining records relating to your securities business is also important to you if there is a customer
complaint, arbitration, litigation or even regulatory action . In some instances, customers have filed a
claim or complaint ten or more years after the purchase of their investment. Depending on the nature
of the claim, a statue of limitations defense may not be applicable.
Following is a list of specific records that must be maintained or returned to FSC upon the OSJ
Manager' s termination:
• Customer Account Fonns, Investment Applications. Subscription Agreements and related forms
(copies of checks, 1035 exchange forms, etc.)
• E>..'J)lanation of Investment Fonns
• Switch Letters
• Signature Guarantee Log and File
• Securities Received and Delivered Log
• Seminar File
• Outgoing Correspondence File with all correspondence, including e-mail
• Incoming Correspondence File, including e-mail
• Representative Files (including items relating to the OSJ Manager's background check of
representatives)
• Third Pany Money Manager (TPMM) documents (customer agreement with third party advisor)
• Rule 3040 Notification and Consent Form signed by OSJ Manager for representatives
• Copies of Satellite Branch Offices Examination Form
:losures for offices located in financial institutions
t include copies of advertising/ sales literature as tbey were actually used)
Securities and investmenl advisory services offered lhrough FSC Securities Coiporation. t.'ember FINRA, SIPC. SEC.reijstered investment adviser.
357 -2
-FSC
Uncommonly Committed~
Additionally, copies of documents forwarded to the Home Office, such as Customer Account Forms,
TPMM contracts and documents evidencing supervision shouJd be maintained and available to
defend against possible complaints or for regulatory purposes.
Errors and Omissions Insurance

Please be aware that Errors and Omissions Insurance coverage provided through FSC will cease to
cover future activities after the date on which your registration with FSC is te rminated.
Please refer to the Sales Practice ManuaJ and/or your Independent Contractor Agreement for specific
details relating to any of the aforementioned items. Should you have any questions regarding your
tennination, please contact your OSJ or the RegionaJ Management Department.
Sincerely,
Ann Holland
Registration/Licensing Dept.
Securities and investmenl advisory services offered lhrough FSC Securities Coiporation, t.'ember FINRA, SIPC. SEC.reijstered investment adviser.
357 -3
The Broker Protocol Is Irrelevant To

This Case
What The Broker Protocol Is And What
It Isn’t
• Broker Protocol is a contract among big wire
houses
• Large brokers like Morgan Stanley, Merrill
Lynch, et al. get tired of suing each other
• Agree that if a broker complies with the
Broker Protocol, the large wire houses won’t
sue each other
Broker Protocol Is A Contract, Not A

Regulation Or Statute – It Is Simply A
Covenant Not To Sue
TRG Is Not A Party To The Contract

Broker Protocol Expressly States It
Does Not Apply To This Situation

• “If an RR is a member of a team or
partnership, and where the entire
team/partnership does not move together to
another firm, the terms of the
team/partnership agreement will govern for
which clients the departing team members or
partners can solicit.”
Broker Protocol Does Not Apply Where
Brokers Take More Than Allowed

• “While RRs move from one firm to another
and both firms are signatories to this protocol,
they may take only the following information:
client name, address, phone number, email
address, and account title of the clients that
they serviced while at the firm (“the Client
Information”) and are prohibited from taking
any other documents or information.”
Davenport Says Dalton Did Not Intend

To Follow Broker Protocol
JohnFiled
Case 3:15-cv-00057-L-AGS Document 404-7 Davenport
04/25/19 PageID.33986 Page 90 of 465
June 16, 2017
·1· · · · · · ·A.· · Absolutely.
·2· · · · · · ·Q.· · And is it correct to say, sir,
·3· · · · that you just didn't take their name, rank,
·4· · · · and serial number, you took basically their
·5· · · · counter information because the privacy
·6· · · · policy of that firm that you were leaving
·7· · · · allowed you to do so?
·8· · · · · · ·A.· · No.
·9· · · · · · ·Q.· · So how was it that you were able
10· · · · to take all the information?· Did you have
11· · · · some like first step to call and say are you
12· · · · coming with me?
13· · · · · · ·A.· · There is general broker protocol
14· · · · when you're leaving one firm and going to
15· · · · another.· We followed standard procedure.
16· · · · · · ·Q.· · Did you do it in this case?
17· · · · · · ·A.· · Yes.
18· · · · · · ·Q.· · Was there any thought at any time
19· · · · that you were with Ardent whether you had a
20· · · · good relationship or a strong relationship
21· · · · with Mr. Steve Dalton that you did not
22· · · · intend to follow protocol?
23· · · · · · ·A.· · Oh, yes.
24· · · · · · ·Q.· · Oh, yes what?
25· · · · · · ·A.· · Oh, Steve didn't intend to follow
U.S. LEGAL SUPPORT 125

(619) 573-4883 YVer1f
JohnFiled
04/25/19 PageID.33987 Page 91 of 465
June 16, 2017
·1· · · · the protocol.
·2· · · · · · ·Q.· · I'm not talking about other
·3· · · · things as far as the brushfires, I'm talking
·4· · · · about client information.
·5· · · · · · ·A.· · I'm talking about client
·6· · · · information.
·7· · · · · · ·Q.· · Well, Let's talk about that.
·8· · · · You're to get the name of the client,
·9· · · · correct?
10· · · · · · ·A.· · Let me stop you here, if I may.
11· · · · · · ·Q.· · Sure.
12· · · · · · ·A.· · Because we're going to go by
13· · · · individual pieces of information and we
14· · · · won't get very far.
15· · · · · · · · · ·Steve was intending to get as
16· · · · much information from those three gentleman
17· · · · out of TRG as possible.· And that included
18· · · · not only individual accounts that they were
19· · · · currently servicing, but prospective
20· · · · information as well.
21· · · · · · · · · ·He was going to create as big a
22· · · · database of information and make these guys
23· · · · as successful as possible, as soon as
24· · · · possible as there was.
25· · · · · · ·Q.· · Okay.· Let's talk about existing

(619) 573-4883 YVer1f
JohnFiled
04/25/19 PageID.33988 Page 92 of 465
June 16, 2017
·1· · · · you're a broker dealer, all the information
·2· · · · on that new account form usually follows you
·3· · · · if that's your client?
·4· · · · · · ·A.· · If that's your client and your
·5· · · · client wishes to follow you that information
·6· · · · will follow.
·7· · · · · · ·Q.· · So whether or not that was
·8· · · · actually said in the protocol as to for
·9· · · · example, time horizon, still, all that
10· · · · information on a new account form is going
11· · · · with you if you're leaving and you're with a
12· · · · protocol firm, is that correct, sir?
13· · · · · · · · · ·MR. KLEIN:· Incomplete
14· · · · · · ·hypothetical, misstates the law,
15· · · · · · ·assumes facts not in evidence.
16· · · · · · ·A.· · At to what information you're
17· · · · entitled to take, I think is still the
18· · · · question here.· And the definition of broker
19· · · · protocol -- I just know that Steve was
20· · · · anxious to get these three guys across to
21· · · · make the San Diego business very profitable
22· · · · not to mention the override he was going to
23· · · · receive which was rather sizeable on the
24· · · · business that they did.
25· · · · · · · · · ·So the fact of the matter is, he

(619) 573-4883 YVer1f
JohnFiled
04/25/19 PageID.33989 Page 93 of 465
June 16, 2017
·1· · · · was going to do as much as he could to make
·2· · · · that as profitable as possible for himself.
·3· · · · · · ·Q.· · Is there anything wrong with
·4· · · · that?
·5· · · · · · · · · ·MR. KLEIN:· Calls for an opinion.
·6· · · · · · ·Q.· · He's out there recruiting
·7· · · · registered representatives.· That's the
·8· · · · stated business of Ardent of which you were
·9· · · · half of an 83 percent member, correct?
10· · · · · · ·A.· · Right.
11· · · · · · ·Q.· · So when you were hearing that at
12· · · · that time from Mr. Dalton did you think
13· · · · somehow that this was unlawful?
14· · · · · · ·A.· · What I mentioned to Steve --
15· · · · · · · · · ·MR. KLEIN:· Mr. Davenport, wait.
16· · · · · · ·Calls for a legal conclusion, calls for
17· · · · · · ·an opinion.· You may answer.
18· · · · · · ·A.· · When he mentioned on many
19· · · · occasions is that -- what I mentioned on
20· · · · many occasions to him, is that I didn't
21· · · · appreciate the fact that he was going after
22· · · · people that could put myself and people who
23· · · · had a former TRG contract in the line of
24· · · · fire.
25· · · · · · · · · ·That I know he didn't have a

(619) 573-4883 YVer1f
Mike Says Broker Protocol Was Never

Discussed
Michael
Case 3:15-cv-00057-L-AGS Document 404-7 Dalton PageID.33991 Page 95 of 465
Filed 04/25/19
June 14, 2017
·1· · · referring to client data, I believe.
·2· · · Q.· ·(By Mr. Klein)· So data about the clients that
·3· Keating, Mele and Gigliotti were servicing; is that
·4· correct?
·5· · · A.· ·That is correct.
·6· · · Q.· ·The paragraph goes on to --
·7· · · · · ·MR. REYNOLDS:· I'm ready to go, but -- again,
·8· · · but if you want to finish up that paragraph, then we
·9· · · get -- we can get back to mine.
10· · · · · ·MR. KLEIN:· That would be fine.
11· · · · · ·MR. REYNOLDS:· Okay.
12· · · Q.· ·(By Mr. Klein)· All right.· On paragraph 8,
13· second sentence, it says, "I therefore worked with
14· Dalton to pay TRG staff while they were at TRG to
15· misappropriate TRG database information and give it to
16· Dalton, Silvers, Davenport, Keating, Gigliotti and
17· Mele."· Was that -- what do you mean by that?
18· · · A.· ·Well, I was working with the group at the time
19· with Steve and Lloyd and we were discussing moving
20· database information which would have been prospective
21· -- I'm sorry, not prospective reps, but client
22· information.
23· · · Q.· ·Did anyone in those conversations say, we don't
24· need to do this, we're going to get everything on the
25· broker protocol anyway?

(619) 573-4883 YVer1f
Michael
Case 3:15-cv-00057-L-AGS Document 404-7 Dalton PageID.33992 Page 96 of 465
Filed 04/25/19
June 14, 2017
·1· · · A.· ·No.· That was never discussed.
·2· · · · · ·MR. KLEIN:· All right.· Thank you for the
·3· · · courtesy, Paul.
·4· · · · · ·MR. REYNOLDS:· No problem.
·5· · · · · ·Okay.· So I'm going to mark this as 807.
·6· · · · · ·(Exhibit No. 807 was marked for
·7· identification.)
·8· · · · · · · · · · · · ·EXAMINATION
·9· BY MR. REYNOLDS:
10· · · Q.· ·This is a -- some e-mails between Mr. Dalton
11· and Mr. Nelson.· Let's look at the third -- the page
12· that has the e-mail on top that says, okay, gentlemen.
13· · · A.· ·Okay.· Uh-huh.
14· · · Q.· ·Okay.· So it looks like Nelson's forwarding you
15· a proposal and you're forwarding on to Wes Wilt.· Who is
16· Wes Wilt?
17· · · A.· ·Wes Wilt is Steve Dalton's partner.
18· · · Q.· ·Okay.· You say, here's the proposal on the
19· e-mail servers and marketing lists.· I got him down from
20· 500 to 350.
21· · · · · ·So this -- this concerns buying marketing
22· lists, right?
23· · · A.· ·It was a sample.· It was a smaller -- if I
24· recall, which I'm still vague, it's five years ago, but
25· it was a sample.· It wasn't the entire list of what they

(619) 573-4883 YVer1f
The Keating Group Took More Than

Allowed To Have Protection Of Broker
Protocol
• TRG Retirekits (Exhibit 469)
• TRG Seminar Slides (Exhibit 730)
• Prospect lists (Exhibits 829, 960, 961)
• The documents Keating produced before his
deposition (Exhibit 1044)
Russ and Janis Howard's
Appointment Question Checklist
s A
Russ and Janis Howard's RetireKit Cham>es 0
Advisor: Office City State Company
Richard Gigliotti San Diego Austin, TX TX AT&T-SBC

Owner's Name Birth Date I Retire Date Social Security
Russ 5/5/1956 12/31/2013 $18,600
Spouse's Name Birth Date Retire Date Social Security
Janis 2/23/1957 12/31/2013 $6,200
Other Sources of Income
Plan Changes
Lump Sum $2,778/$650,000
Savings Plan $469,370
Other Assets to Use
Client IRA $0
Client Investments $0
Spouse's Lump Sum
Spouse's Savings Plan
Spouse's IRA Janis's estimated Retirement Lump Sum monies of $0 have
been assumed to be rolled to the total IRA value assuming a
retirement date of 12/31/2013.
Spouse's Investments
Other
If Future Work: Verify that end year does not end past start year of Social Security on SS
Verify both sets of spreadsheets end on the same year
Verify money on main spreadsheets runs past 81
Verify Retire Kit is no longer then 89 pages
Verify there are no blank pages in the Retire Kit
Verify the date in the header is correct
If Mortgage is included: verify dates and that value is correct
0 What are you looking for in an advisor?
0 What type of information are you looking for? What do you expect?
0 What should a good advisor supply you with?
0 What have you seen that you like from other seminars, meetings?
0 Whal did you like from olher firms and who are Lhey?
0 What questions do you have regarding your pension plan?
0 What questions do you have regarding your health plan?
Please fax changes to: 1-800-900-0222
Registered Representative of and securities offered through FSC Securities Corporation, Member FINRA/SIPC.
Investment Advisor Representative of and Advisory Services Offered Through The Retirement Group, LLC.
The Retirement Group, LLC and FSC Securities Corporation are not affiliated companies.
© 2012-2013 The Retirement Group® 800-900-5867
CONFIDENTIAL MGK000381
469
Russ and Janis Howard
November 11, 2013
Disclosure
This report is provided with the understanding that the preparer is not engaged in rendering legal, accounting,
estate planning, or other professional services. The report is intended to present only an overview of financial
planning advantages and alternatives and to serve as a reference for further discussion with qualified legal counsel,
accountants and professional advisors.
Information, illustrations, calculations and assumptions contained in the application are for information purposes
only and will change based on different assumptions and laws and are not guaranteed. The preparer does not
represent, warrant or guarantee financial or retirement planning performance or results that may be obtained from
use of the report nor does it represent, warrant, or guarantee financial or retirement planning performance or
results that may be obtained from use of the report nor does it represent, warrant or guarantee that analysis of past
financial performance can predict or is any indication of future financial performance.
The preparer does not recommend any particular asset allocation, security or investment method nor does it offer
customized tax, legal or investment advice or strategies. Rates of return and calculations are for illustration only and
do not represent any specific investment results. Before taking any action, you should seek the advice of qualified
legal counsel, accountants and professional advisors.
By signing this document, I acknowledge that I have read the disclaimer, understand its content and agree to its
terms.
Client Signature Date Client Signature Date
469
Case 3:15-cv-00057-L-AGS Document 404-7 Filed 04/25/19 PageID.33996 Page 100 of
465
The Retirement Group_ll[.

"Partners in Retirement "sm
Invites you to receive a complimentary
RetireKitsm analysis
Call for your Topics Include:

personalized • What should you do if you are affected by an
RetireKit early retirement offer.
• How to access IRA money before age 59 1/2
(800) 900-5867 and avoid penalties.
• Why you might want to consider taking
Or advantage of asset allocation.*
• What are the advantages of a Retirement
visit us on the web at Specialist vs. a generic financial planner?
www.Retirekit.com • How you can potentially recreate a paycheck
in retirement.
• How to identify key elements in determining
Call for info on
the benefits of leaving the company or
workshop dates
delaying retirement.
(800) 900-5867
• How interest rates potentiaiiy affect your
pension lump sum payout.
The Retirement Group is committed to providing a high level of service to

individuals as they make the transition from valued employee to transitional
employee or retiree. This is done through complimentary workshops,
conference calls, newsletters, and personal consultations with our partners;
each having an average of 20 years in the retirement industry. Call 800-900-
5867 to have your complimentary cash flow analysis constructed today.
Corporate Office: 10509 Vista Sorrento Parkway #205, San Diego CA 92121
Securities offered through FSC Securities Corporation, member FINRA/SIPC. Investment advisory services offered through
The Retirement Group, LLC. a registered investment advisor not affiliated with FSC Securities Corporation.
Investing involves risk including the potential Joss of principal. No investment strategy can guarantee a profit or protect against
loss in periods of declining values. Past performance is no guarantee offuture results. Fees are incurred when assets are
under management of advisors affiliated w1lh The Retirement Group. Please note that individual situations can val)'.
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465

Retirekit
The Retirement Group

800-900-5867
presented by
Richard Gigliotti
November 11, 2013
The Retirement Group

10675 Sorrento Valley Rd San Diego, CA 92121
The Retirement Group, LLC is not affiliated with FSC Securities Corporation.
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Retirement Financial Plan
Table of Contents
► Introduction and Background on Richard Gigliotti

► AT&T-SBC Qualified Plans
► Retirement Objectives and Options
► Current Investments and Estimated Goals

► Yearly Income Chart
► IRA Growth Graph
► Types of Accounts
► Investment Philosophy
► Investment Allocation
■ Risk/Rt>t11rn Ch:::irt
■ Investment Allocation Breakdown
• Fixed Income Investments
• Inflation Sensitive & Growth Securities
■ Retirement Financial Plan Summary
► Account, Fee & Tax Free Bond Questions

► Notes on Social Security
► 20% Withholding on Rollovers
► Rules Concerning Premature IRA Withdrawals
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Disclosure
• The rates of return used throughout this report are for illustrative purposes only; they do not represent any
specific investment.
• Investing in mutual funds involves risk, including the potential loss of principal invested. Risks vary
depending upon the strategy used by the fund as well as the sectors in which the fund invests. When
redeemed, shares may be worth more or less than the original amount invested. Mutual funds have fees
and expenses that will affect an investor's net return.
• In general, bond market is volatile, bond prices rise when interest rates fall and vice versa. This effect is
usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to
maturity may be subject to a substantial gain or loss.
• Unlike securities, CDs and other bank deposits are FDIC-insured and offer a fixed interest rate.
• Small-cap stocks tend to experience greater volatility than large-cap stocks.
• Foreign investments involve special risks including greater economic, political, and currency fluctuation
risks, which may be even greater in emerging markets.
• The indexes that appear in this report are unmanaged. Investors cannot invest directly in indexes.
• An investment in a money market fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose money by
investing in the fund.
• Past performance does not guarantee future results.
• Variable annuities are long-term investments suitable for retirement funding and are subject to market
fluctuations and investment risk, including the possibility ofloss of principal. Annuities generally contain
fees and charges which include, but are not limited to, mortality and expense risk charges, sales and
surrender charges, administrative fees, charges for optional benefits and riders, and annual contract fees.
Annuity guarantees, including guarantees associated with benefit riders are subject to the claims-paying
ability of the insurance company. Surrender charges may apply if money is withdrawn before the end of the
contract. All withdrawals of tax-deferred earnings are subject to current income tax, and, if made prior to
age 59½, may be subject to a 10% federal income tax penalty. Additionally, if purchased within a qualified
plan, an annuity will provide no further tax deferral features. The contract, when redeemed, may be worth
more or less than the total amount invested. All other benefits are available for an additional cost. It is
important to weigh the costs against the benefits when adding such options to an annuity contract.
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• Investors should carefully consider the investment objectives, risks, charges and expenses
of variable annuities and the underlying funds before investing. This and other
information can be found in the prospectus for the variable annuity and the prospectuses
for the underlying funds, which can be obtained by calling 800-900-5867. Please read them
carefully before you invest.
• Investors should carefully consider the investment objectives, risks, charges and expenses
of mutual fund and exchange traded funds. This and other important information is
contained in the prospectuses (as well as statutory prospectuses), which can be obtained by
contacting 800-900-5867 and should be read carefully before investing.
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RUSS AND JANIS HOWARD'S

I~~TRODUCTIO~~
This Retirekit is a complimentary and proprietary retirement tool provided by The Retirement Group and I,
Richard Gigliotti for employees of AT&T-SBC who are considering transitioning or retiring from AT&T-
SEC. This Retirekit is designed to address the two major risks of retirement: one, the risk ofleaving too
soon and, two, the risk of staying too long. The Retirekit is designed to address these and other questions
about retirement, such as:
• "Can I afford to retire or leave AT&_T-SBC?"

• "What pension option is best for me?"
• "Does this offer make sense?"
• "How do I avoid the pre-59½ 10%federal penalty?"
• "Who will assist me with pension and health issues after retirement?"
Please note that neither this plan nor our organization is affiliated with AT&T-SBC. Your plan is a highly
personalized illustration designed to help you meet your retirement objectives, including your income
needs. We will begin the analysis with an explanation of The Retirement Group, and we will demonstrate
why we are uniquely qualified to help you meet your specific long-term retirement needs.
Then, we will give you a brief overview of your AT &T -SBC Qualified Plans followed by a review of your
retirement objectives, tax options, and a discussion of your AT&T-SBC pension options. An estimate of
your retirement income after retirement will be calculated using a hypothetical rate of return that is not
indicative of any specific investment product1 , assets you hold, social security, and any other miscellaneous
income.
This analysis was designed around your retirement objectives and your current situation in the current
economic environment. In other words, in the following pages, we are going help you determine the
answer to two big questions; first, "Can I afford to retire?" and second, "When is the best time for me to
retire?" This analysis is based on our belief that in order for us to provide you with sound investment
advice, we must first understand you, your retirement goals and your current situation. In other words we
need to evaluate your income needs and objectives, before we can give you any investment advice on your
distribution. We believe that no investment advisor can give you retirement advice until your cash flow
needs have been accurately determined. In other words, your income needs come first!
Our first step is to introduce you to The Retirement Group and Pershing, our clearing firm. Then we will
explain the complimentary services that you can expect from The Retirement Group.
If any questions should arise while reading this document we encourage you to call Richard Gigliotti or our
operations department at .
1
Market fluctuations will vary and an assumed rate of return should not be relied upon.
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Pershing Services
The Retirement Group's Broker Dealer, FSC, clears all its transactions through Pershing, the largest
clearing firm in the United States. Established in 1939, Pershing currently represents 13% of all NYSE
volume. In 2003, Pershing was acquired by The Bank of New York, the oldest bank in the United States
and one which has long enjoyed a reputation for high quality equity and fixed income services.
Pershing is also a member of the Securities Investor Protection Corporation (SIPC), which provides
additional protection when a member firm is unable to meet its obligations to its securities customers'
account up to $500,000, of which $100,000 may be in cash. This SIPC protection does not protect against
losses from the rise and fall in the market value of securities. Pershing then provides protection when a
member firm is unable to meet its obligations to its securities customers for the securities in each account,
to bring the total to an unlimited amount1 • Pershing does not protect against losses from the rise and fall in
the market value of securities. This offers our retirees all over the United States a stable clearing resource.
The Retirement Group & Affiliates

The Retirement Group is a nation-wide group of financial advisors who work together as a team. We focus
entirely on retirement planning and the design of retirement portfolios for the transitioning corporate
employee. Each representative of the group has been hand selected by The Retirement Group in select cities
of the United States. Each advisor was selected based on their pension expertise, experience in financial
planning, and portfolio construction knowledge.
Richard Gigliotti
Our senior partner is Richard Gigliotti. He is a retirement specialist with extensive
experience in benefits, finance, and financial services. Together, Richard Gigliotti and
The Retirement Group have consulted with thousands of employees from major
corporations such as AT&T, Verizon, Pacific Bell, GTE, PG&E, Lucent, Chevron, and
Northrup Grumman.
Richard Gigliotti is a Registered Representative of FSC Securities Corporation. Our

administrative department assists in coordinating and marketing The Retirement
Group's pre-retirement workshops and financial planning services and is also available
for any client or seminar attendee questions. Please feel free to call us anytime at 800-
900-5867, to take advantage of these complimentary services.
1
Account protection applies to when a member firm is unable to meet its obligations to its securities customers. This is in addition to SIPC
coverage and does not protect against losses from the rise and fall in the market value of securities.
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The Retirement Group~ LLC Team Members

TRG takes a teamwork approach in providing the best possible solutions for our clients concerns. The Team has
a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds,
ETFs, Annuities, Stocks and other investments to help achieve their goals. The team addresses Retirement,
Pension, Tax, Asset Allocation, Estate, and Elder Care issues. Team members include:
■ Marvin King, CFP ®, ■ Jeremy Keating, ■ Michael Tomren ■ Erik J. Larsen

AEP, ChFC ®, CLU ® MBA
■ Patrick Ray, LUTCF ■ Frank Esposito ■ RobertJ. Welsch ■ Brent Wolf, CFP ®
The Retirement Group. ll[ - Complimentary Services

■ Ongoing Retirement Workshops ■ Portfolio Reporting
■ Bimonthly Retirement Newsletters ■ ATM & checks
■ Continued Personal Consultations ■ Experienced Local Staff
■ Evaluation and update of Financial Plan
This Retirement Plan utilizes various research tools and techniques. A variety of assumptions and judgmental
elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should
be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal
circumstances will have profound effects on both the accuracy of our estimations and the suitability of our
rPrnmm Pnrl;itinns. ThP nPPrl fnr nngning sPnsitivity tn rh;ingP ;inrl fnr rnnst;int rP-PY'1min;itinn ;inrl ;iltpr;itinn nf
the plan is thus apparent. Therefore, Russ, we encourage you to have the plan updated a few months before
your potential retirement date (12/31/2013) as well as every year after you leave AT&T-SBC.
It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the
practice oflaw or accounting and that nothing in this report should be taken as an effort to do so. We look
forward to working with tax and or legal professionals you may select to discuss the relevant ramifications of
our recommendations.
Throughout your retirement years we will continue to update you on issues affecting your retirement through
our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at
(800) 900-5867.
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AT&T- SBC Qualified Plans

As an AT&T-SBC employee, you will receive three qualified plans when you retire from AT&T-SBC: Pension, the
Savings Plan and the ESOP. Below we will outline some basic features of each plan to better acquaint you with your
retirement benefits. Remember we recommend contacting your benefits department for specific information since
The Retirement Group is not affiliated nor associated with AT&T-SBC.
Retirement Plan (Pension)

Since the form in which you receive your benefits is largely an irrevocable decision, we recommend that you contact
your benefits advisor at 800-416-2363 and review our analysis in the Retirement Objectives & Options section to
determine which method is best suited to meet your post retirement needs.
Non-Salaried
To be eligible for Early Retirement with reduced benefits under the AT&T-SBC non-salaried Retirement Plan, you
must meet the following requirements:
Service Pension Eligibility for AT&T- SBC

Retirement Plan
.. Any age with 30 or more years of service
As early as age 50 with 25 or more years of service*
• As early as age 55 with 20 or more years of service
• As early as age 65 with 10 or more years of service
* May be subject to an age discount if you are not 55 or have less than 30 years of service of 6% per year to age 55.
Salaried
If the Career Average Minimum(CAM) pension starts at age 50 and you do not have 30 years of service there is a
½% per month or 6% penalty per year to age 55 or a 30% total penalty. With 30 years of service there is a 3%
penalty to age 55.
AT&T-Southwestern Bell(AT&T-SBC) Management employees have 3 pensions available: the Grandfathered

pension that was frozen 5/31/02, the Cash Balance introduced in 1997 that grows like the savings plan without the
market risk and was frozen 1/ 1/05, and the Career Average Minimum(CAM) that was introduced in June of 2001.
AT&T-SBC/ Ameritech Management employees have 4 pensions available: the Defined Lump Sum(DLS)
introduced in 1995 and was frozen 1/ 1/05, The Special Pension Account (SPA) introduced in 1999 and frozen in
2001, the Career Average Minimum(CAM) introduced in June of 2001, And the Pension Band Minimum available
to non-salaried employees promoted to management after 6/ 13/01.
AT&T-SBC/Pacific Bell Management have 4 pensions available: the Cash Balance introduced in 1996 and was
frozen l/ 1/05, the Accelerated Transition Benefit(ATB) introduced in 1996, the Special ATE introduced in 1998
and frozen in 2001, and the Career Average Minimum(CAM) introduced in June of 2001.
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There are three basic benefit payments that are available for your AT&T-SBC Retirement Plan.
Optional Forms of Payment of Retirement Benefits

• Lump Sum/ Cash Out
• 100% Pension Without Survivor (Single Life)
• Reduced Pension With a 50% Survivor
The Lump Sum / Cash Out option allows you to take the equivalent of all your pension payments in a single
distribution upon retirement. This value is calculated using factors such as life expectancy and discount rates. The
Salaried plan uses the new GAM-83 life expectancy tables and the new GATT interest rates. The GATT interest
rates are the average monthly yield for actively traded 30-year U.S. Treasury bonds of constant maturity for the
specified month. The AT&T - SBC pension could change the interest rate used to calculate the lump sum. The 100% Pension
(Single Life) option simply provides you with a monthly check for the rest of your life. A Reduced Pension with
Survivor option provides you a reduced pension payment during your lifetime but passes an even further reduced
payment to your spouse. These three options are investigated, in complete detail, at our Tax Strategies Seminar.
AT&T- SBC Savings Plan and ESOP

When you retire from AT&T - SBC you will need to call the Participant Inquiry Network (PIN) to request your
funds (800-416-2363) and we can assist you with the call if you desire. You may expect to receive distribution of
your Savings Plan within approximately 30 days after the latter of your retirement effective date or the date your
completed distribution request is received and verified. The balance held in your accounts will be determined as of
the end of the month in which your verbal or written request is received or your account balance is finalized,
whichever occurs last. Remember, you will need to put Pershing. LLC as your custodian on your form
in order to avoid the 20% withholding penalty (see appendix).
Decisions to Make Before You Retire

• Group Health Plan: Whether to continue or choose another.
• Dental Insurance • Vision
The chart on the following page shows the current status of your AT&T Savings Plan which includes investments in
the following alternatives:
• AT&T Shares Fund AT&T Age-Based Asset Allocation Funds
. Large Cap U.S. Stock Index Fund . AT&T Stable Value Fund
• Small & Mid-Sized U.S. Stock Index Fund • International Stock Index Fund
• Total U.S. Stock Market Index Fund • AT&T Total Return Bond Fund
• AT&T U.S. Stock Fund • Fidelity BrokerageLink®
• AT&T International Stock Fund
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AT&T- SBC Savings Plan
Investment Options
AT&T I Large Cap I I Mid and Global Interest

Stock I Stock Small-Cap Equity and Income
Stock Equity and Bond I O')
(0
Stock -.::I"
AT&T Large Cap Small & Total AT&T AT&T AT&T AT&T Int'l Stock AT&T Fidelity
Shares U.S. Mid-Sized U.S. U.S. Int'l Stock Age-Based Stable Index Total Brokerage
Fund Stock U.S. Stock Stock Index Asset Value Fund Return Link®
Index Stock Market Index Fund Allocation Fund Bond
Fund Index Index Fund Funds Fund
Fund Fund
© 201 o The Retirelll!nt Group sm 800-900-5867
465

Retirement Objectives and Pension Options
In the preceding section, we summarized the current options of your AT&T-SBC qualified retirement and
savings plans. We would now like to discuss your retirement objectives, the lump sum pension decision, and
the tax alternatives available on your plans. You may be asking yourself, "What are my retirement objectives?
Which is best lump sum or fixed annuity? What tax alternatives do I have?". We will cover each of these three
important questions in the following pages before moving on to your income estimations and The Retirement
Group investment policy.
Attend an AT&T-SBC seminar or schedule a personal appointment with an advisor, this will assist you in
defining your post retirement objectives. Once your retirement objectives are set you must then analyze your
pension decision and finally evaluate your tax options. Your pension and tax options should, of course, be
addressed keeping in mind the priority of your objectives. For example, selecting conservation of principal and
comfort or enhancing income as your primary objective makes the choice of your pension or tax options easier
to make.
While you might have several very specific objectives, they will all generally fit into one of four categories listed
below. Review the following, determine your objectives, and list them in order of priority. Remember, the
two biggest mistakes we see retirees make are first picking the wrong date to leave and second paying too much
in taxes. The Retirement Group recommends that you discuss your current target retirement date of
12/31/2013, with Richard Gigliotti and decide if this really is the best time for you to retire.
Retirement Objectives
• Conservation of Principal/Comfort
• Enhance Retirement Income
• Reduce Taxes
• Enhance the Estate Value (Heirs)
For the vast majority of our clients the primary concern at retirement is the loss of the company check.
Therefore, the principal objective of most retirees is to enhance retirement income and the question then
becomes "How do I reallocate these monies; Pension Lump Sum ($650,000), Savings Plan ($469,370), IRA's
($0) and Outside Assets ($0) to satisfy my primary objectives and replace my salary? To make this decision
easier for you, we have illustrated the two potential options on the next page. If you choose the lump sum as
many AT&T-SBC people do, you must evaluate all the various tax alternatives available to you. In the next
section we will look into your specific lump sum values to give you a good idea as to why the lump sum may
make sense in your case.
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Russ and Janis Howard's Pension Options
In this section we demonstrate the difference between taking your pension as a lump sum versus an annual
annuitv.
J
The material discussed in this section is meant for Ogeneral illustration and/ or informational 1nurnoses
1
only and is not indicative of any specific product or pension plan. Individual situations will vary. So, why is a
Lump Sum of $400,000 possibly better than your annual annuity? Because the annual payment from the annuity
will guarantee a monthly annuity for life, the pension insurer underwriting the annuity must invest
conservatively. Largely investing in intermediate term bonds assuming the worst about interest rates, inflation,
as well as increased life expectancies. The result is that your annual annuity is based on interest rates of around
4-6% while not having the advantage of passing these monies on to heirs. In the following chart we illustrate the
differences between taking the pension as an annual annuity and taking the pension as a Lump Sum, and rolling
it into an IRA with a hypothetical rate ofreturn of 5 .00%. This rate ofreturn is for illustration purposes only,
not indicative of any specific investment1, and will fluctuate depending upon the types of investments funding
an IRA.
Pension vs. IRA Income

The following is a hypothetical illustration of a lump sum of $400,000:
• In this example, the Single Life Annuity option would provide an approximate lifetime monthly annuity of
$2,777.78. This Single Life Annuity option of $2,777.78 is shown in the "Base Pension" column of the chart
below.
• In this example, the 50% Joint & Survivor option would provide an approximate lifetime monthly annuity
of $2,500.00. The approximate value of the 50% Joint&Survivorship option is shown in the "Base Pension"
column of the chart below.
• In this example, taking the Pension as a Lump Sum, with a hypothetical rate of return of 5%, the Lump
Sum would generate $1,666.67 of income every month without reducing the principal amount of
$400,000. The approximate income the Lump Sum would generate is shown in both section sof the "IRA
Rollover Income" columns of the chart below.
Base Pension IRA Rollover Income

(monthly) (monthly)
Single Life Option $2,777.78 $1,666.67
50% Joint & Survivor Option $2,500.00 $1,666.67
The IRA Advantage

There can be no guarantee that rolling funds into an IRA will produce better income than the annuity option
provided through your em player's pension plan. The advantages of the IRA rollover option, however, are not
fully illustrated in a direct comparison of monthly income generated. The real benefit of an IRA rollover lies in
its ability to potentially continue generating better income for a surviving spouse and monies that will be passed
on to your children and heirs.
• In this example, assuming a hypothetical Lump Sum of $400,000, choosing the Single Life Annuity option
will provide an approximate lifetime monthly annuity of $2,777.78. Compared to the $1,666.67 of income
a Lump Sum would generate, the Single Life Annuity would provide $1,111.11 more in income each
month for life. This is shown in the "During Employee Lifetime" row of the chart below.
1
All investments are subject to risk, including the potential loss of principal invested
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• In this example, the Single Life Annuity option will not provide any income for the lifetime of a surviving
spouse, while the hypothetical Lump Sum of $400,000 would still generate $1,666.67 in income a month
with a hypothetical rate of return of 5% and without making withdrawals from the Lump Sum's principal
amount of $400,000. The Lump Sum would provide $1,666.67 more in income each month for the
lifetime of a surviving spouse. This is shown in the "Surviving Spouse" row of the chart below.
• In this example, choosing the Single Life Annuity option will not provide money that can be passed down to
heirs. A Lump Sum of $400,000 would provide $400,000 to be passed down to children and heirs if
withdrawals are not made from the Lump Sum's principal amount of $400,000. This is shown in the
"Passed to Heirs" row of the chart below.
Single Life Option

Base Pension vs. IRA IRA Benefit
Durinq Employee Lifetime $2,777.78 $1,666.67 ($1,111.11'
Surviving Spouse $0.00 $1,666.67 $1,666.67
Passed to Heirs $0.00 $400,000.00 $400,000.00
• In this example, assuming a hypothetical Lump Sum of $400,000, choosing the 50% Joint & Survivor
option would provide an approximate lifetime monthly annuity of $2,500.00. Compared to the $1,666,67
of income a Lump Sum would generate, the Single Life Annuity would provide $833.33 more in income
each month for life. This is shown in the "During Employee Lifetime" row of the chart below.
• In this example, the 50% Joint & Survivor option provides $1,250.00 in income for the lifetime of a
surviving spouse, while the Lump Sum of $400,000 would still generate $1,666.67 in income a month with
a hypothetical rate of return of 5 % and without making withdrawals from the Lump Sum's principal
amount of $400,000. The Lump Sum would provide $416.67 more in income each month for the lifetime
of a surviving spouse. This is shown in the "Surviving Spouse" row of the chart below.
• In this example, the 50% Joint & Survivor option will not provide money that can be passed down to heirs.
Assuming a hypothetical Lump Sum of $400,000, the Lump Sum option would provide $400,000 to be
passed down to children and heirs if withdrawals are not made from the Lump Sum's principal amount of
$400,000. The approximate value is shown in the "Passed to Heirs" row of the chart below.
50% Joint & Survivor Option

Base Pension vs. IRA IRA Benefit
Durinq Employee Lifetime $2,500.00 $1,666.67 ($833.33'
Surviving Spouse $1,250.00 $1,666.67 $416.67
Passed to Heirs $0.00 $400,000.00 $400,000.00
Fully taxable at time of distribution to your heirs, This isfor illustration purposes only, future IRA values could be hi9her or lower.
Besides the obvious income advantages to you, the lump sum also gives you more flexibility, better access to capital,
a better chance to keep up with inflation, and most importantly you can pass these assets on to your heirs. These
advantages all address your retirement objectives therefore the Lump Sum option should be considered.
The Pension Advantage

• Your company takes full responsibility for all investing and maintenance fees
• They can invest as a group for better diversification. If you don't have a very big lump sum to invest, you
can't really diversify as well in an IRA as you can by leaving it as a pension
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• You have a guaranteed monthly amount locked in at your retirement which does not change with market
fluctuations.
• If your family has a history of long lifelines, it doesn't matter with a pension because you can't outlive a
pension; it continues for your lifetime.
• You can also choose a joint or survivor's annuity plan. So, if you die, your surviving spouse/partner will
still get something.
Lump Sum Distribution Tax Options

The next question to ask yourself as you prepare for retirement is, "What tax method is appropriate to enhance
income while reducing taxes?" Most retirees have two primary tax alternatives: ten year averaging or an IRA
rollover. Because you were born, 5/5/1956, and not before January 1, 1936, current tax laws do not permit
ten year averaging on any lump sum distributions. However, you can avoid the pre 59½ 10% age penalty, by
following the guideline ofIRS rule 72(t). This rule states that the 10% additional tax will not apply to
distributions which are part of a series of substantially equal payments. The appendix describes this ruling in
complete detail given your personal situation. However, Russ, 72(t) programs are complex and can have
adverse tax consequences if the program is not followed under current IRS rules, we still recommend you seek
the advice of your tax counsel before making any decisions.
Since most of our prospective clients have attended our workshops on retirement planning, they likely have a
basic understanding of the rules and regulations governing the tax treatment oflump sum distributions. Below,
we have reviewed those basic rules to aid you in better understanding this Retirekit.
IRA Rollover Tax Rules

• For 2009, The IRS limits the annuity distributions from qualified plans. This amount drops if you retire younger.
This legal limit will drop further if you made significant contributions into you Savings plan or if the T-Bond rate
rises. We recommend calling us at 800-900-5867 and attending our advanced 415 seminar to get more details on
how this IRS guideline may affect you.
• Von ran :1vnicl the- 108/n pe-n:1lty nn any 't!llit-hilra'W':1I~ marfp. prior +n agP t;(}V, hy me-Pf'ing re-rh'lin TR, gnirlPline~
under rule 72(t). (See Appendix)
• You can avoid the 20% withholding penalty by having a direct transfer of your AT&T-SBC Lump Sum distribution
into a Pershin9 LLC IRA • (See Appendix III)
• You can rollover into an IRA one or more distributions in a single year.
• You can rollover into an IRA multiple distributions in different years.
• You can rollover one distribution into an IRA in one tax year, and in a completely different tax year, utilize ten
year or five year averaging on a different distribution.
• You cannot divide a single lump sum distribution, i.e., rollover a portion into an IRA and utilize ten year or five
year averaging on the portion not rolled over.
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RUSS AND JANIS HOWARD'S CURRENT

Ir-~VESTJ\tEr-~TS Ar-~D ASSUJ\tPTI Or-~S
Now that we have reviewed your objectives and your pension and tax options of your AT&T-SBC plans, we
will now apply the specific financial information you provided us. We will take that information and apply it to
a cash flow estimation using your assets and retire date of 12/31/2013. We will then use our investment policy
to construct an investment portfolio, which will be designed with your goal of making your lump sum of
$1,119,370 cover your annual income goal of $60,000 per year after tax. The final version of this analysis was
printed on November 11, 2013 and all assumptions are based on average interest rates over the last six months.
Given your current circumstance we highly recommend that you continue to work a part time job for the next
5-7 years post retirement.
Your Scenario: Rollover Pension and Savings Plan into an IRA in 2013
Personal Data as ofNovember 11, 2013:

Russ's birthdate 5/5/1956.
Russ retires 12/31/2013 and Janis retires 12/31/2013.
Income Needs= $60,000 after tax, increasing at 3.00% annually.
If your plan includes a mortgage, the amount of your yearly mortgage payment will be reflected in the cash flow analysis portion to
follow. It has been deducted from your annual income need above to properly forecast the effect of inflation on your retirement goals.
Income:
Social Security:
Russ' s estimated Social Security at age 62 = $18,600 per year. Assuming 2. 00% Cost of Living Adjustment
(COLA) from year 2013 base.
Janis's estimated Social Security at age 62 $6,200 per year. Assumes 2.00% cost of living adjustment
(COLA) from year 2013 base.
• During the 1980's and 19901s Social Security cost of living increases have ranged from 2.5% to 14.3%,
averaging approximately 4%. However, we will index payments in our estimations by only 2.00% per year
to provide a conservative illustration for latter years.
• For those born between 1941 and 1957 you must wait to age 66 to collect full benefits but you can still
receive reduced benefits as early as age 62, which is what we assumed in this analysis, Please see our notes
on Social Security located in the appendix.
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Additonal Income/Expenses:
Russ, you stated on the questionnaire that you will have no other sources of income after your retirement.
Over tl1e course of your retirement, hov,ever, you should consider additional income from sources that
may not seem obvious right now, for example future work or the sale of Real Estate.
Assets:
The biggest mistake our retirees make is choosing the wrong date to retire. To illustrate how you may
satisfy your income needs, we will consider your current assets. Specifically, your Lump Sum Pension
($650,000), your Savings Plan ($469,370), and if applicable, your IRAs ($0), and any liquid capital ($0).
Because you will be retiring at the age of 57 we recommend re-running this analysis with an earlier effective
retirement date that reflects leaving earlier and transitioning to another job.
Retirement/Trust Plan (Pension Lump Sum)

Your Retirement Plan (Pension) is assumed to have a current Lump Sum value of
approximately $650,000 less tax paid monies equal to $0 added below. Remember to use a 6.5% GATT
rate if you plan on retiring after 2012. Current GA TT rates are at 30 year lows. If interest rates rise by 1%,
your pension lump sump could go down by as much as 12%.
Profit Sharing, Savings or Thrift Plan

AT&T-SBC Savings Plan currently has $469,370, which will be used for your projections. This $469,370
amount may be higher or lower at retirement depending upon market fluctuations.
After Tax Monies

Balance of after tax tax monies equals $0 and Savings Plan Tax paid contributions equals $0 (included
above). This includes a total tax paid amount of $0 which will be added to your liquid capital below.
Liquid Capital
Total Liquid capital outside your IRA equals $0 tax-paid Pension and 401K plan, plus $0 other liquid
investments which equals $0 at retirement to give us a total future value of $0, assuming a 2.00% rate of
return.
IRAs
Existing IRA account(s) currently at $0 has an estimated value of $0 at retirement. Janis's estimated
Retirement Lump Sum monies of $0 have been assumed to be rolled to the total IRA value assuming a
retirement date of 12/31/2013.
• To give you a feel for the com pounding growth on your total IRA funds, we have included
all your existing IRAs in our estimations at the end of this portfolio. This is for illustration
only. In actuality, your existing IRAs may be kept separate from your IRA Rollover.
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Tax Rates
For tax purposes, make the following assumptions in this analysis:
• 2013 Federal Tax Rate at 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% bracket:
Tax Brackets for 2013
Married Filing Married Filing

Marginal Rate Single Head of Household
Jointly Separately
10% 0 - 8,925 0 - 17,850 0 - 12,750 0 - 8,925
15% 8,926 - 36,250 17,851 - 72,500 12,751 - 48,600 8,926 - 36,250
25% 36,251 - 87,850 72,501 - 146,400 48,601 - 125,450 36,251 - 73,200
28% 87,851 - 183,250 146,401 - 223,050 125,451 - 203,150 73,201-111,525
33% 183,251 - 398,350 223,051 - 398,350 203,151 - 398,350 111,526-199,175
35% 398,351 - 400,000 398,351-450,000 398,351 -425,000 194,176- 225,000
39.6% 400,001 or more 450,001 or more 425,001 or more 225,001 or more
• 2013 TX State and local Tax rates at 0.00%.
• 2013 standard deductions and personal exemption:
Deductions and Exemptions - 2013
Exemptions
Personal Exemption $3,900
Standard Deductions
Married Filing Jointly (MFJ) $12,200
Single (S) $6,100
Head of Household (HOH) $8,950
Married Filing Separately (MFS) $6,100
Dependent (see also kiddie tax) $1000
Additional Deductions
If Married Filing Jointly age 65 or older or
blind $1,150 (+ standard deduction)
If Single age 65 or older or blind $1,450 (+ standard deduction)
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RECOMMENDATIONS FOR THE RECEIPT OF AT&T-SBC

DISTRIBUTIONS:
AT&T-SBC RETIREMENT PLAN:
Based on our analysis, we recommend that you consider the lump sum option and transfer this value
directly into an IRA account (see appendix III on 20% withholding). This value is currently a $650,000
cashout, less $0 tax paid in 2013. Below, we have listed the major reasons as to why we suggest this as an
option.
Reasons for choosing the cashout option on your

Retirement Plan
• Y9u have the ahility t'Q ccmtrol cash from yow :Pershing, LLC IRA as opposed to co11Sctai:it monthly
payments tif the AT&;T-SBC nipnthly canhuity. Yqu ~ai:i then benefit fr9m the IRA tax deferr.µ cand.
withdrawal when income needs requite. (see Appendix I)
• You have access to capitalas well as income from your IRA (eg. emergency)
• Y<>u are able to pass 'Oh these moni'es heyoncl yourself: This ability is not available from the AT&T:.SBC
monthly annuity, although taxes still apply.
• .Greater. investm.ent ~ele<;tjon 9ptkms tp help prqvide a hedge ag~t fhanging intere~t rates, health. care
costs and inflation.. · · · ·
• · IRAs are a rotected account under some bankru: tc laws 1 •
SA VIN GS PLAN:
The Retirement Group also recommends that you take your Savings Plan (401k) as a lump sum and transfer
this directly into an IRA (see appendix III on 20% withholding). The lump sum future value at retirement
is $469,370, less $0 tax paid in 2013
Total IRA Rollover

Pension Plan lump sum distribution $650,000
1 c< • r11 T"i,•. •1 ,,
p1us ;,avmgs rrnn v1su10uuon $469,370
plus existing IRA (estimated value at retirement) $0
minus Pension and Savings plan tax paid contributions: $0
Total $1,119,370
We also suggest that you keep $1 S, 000 (expressed as cash in our analysis) in an outside IRA and add it to your
existing liquid capital ( open a separate IRA account).
COMMENTS:
While we strongly recommend that you seek the advice of a CPA to determine all of the tax
consequences, we feel you should deplete your after tax liquid capital before accessing withdrawals
from your IRA.
1
Laws are subject to change, The Retirement Group does not provide legal advice and that investors are urged to seek the advice of an
attorney concerning bankruptcy laws.
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Hypothetical Illustration Glossary

The following is a hypothetical illustration of your $60,000 after-tax withdrawal need compounded at a 3.00%
rate of inflation for the years folln,ving your retirement, based on tl1e assumptions made in this section. The
items are defined as:
Pension Plan This shows your annual pension, if you are receiving a pension
annuity, of $0 inflated at 0.00%.
Social Security Shows $18, 600 inflated at 2. 00% estimated Social Security income
received in year (or partial year) received.
Outside Investment Shows the liquid capital, such as stocks, mutual funds, savings, etc.,
Capital Used retirement which was withdrawn to meet your inflated $60,000
income need.
IRA Withdrawals IRA Withdrawals are only taken when and if necessary to either satisfy
your income need or as mandated by law (when you turn age 70V2 ).
Other Income This represents other sources of income such as working after
retirement, real estate, etc. These sources supplement your income
available. Given your current circumstance we highly recommend that
you continue to work a part time job for the next 5- 7 years post
retirement.
Pre-Tax Cash Flow The five sources of income stated above are added together to make up
your before tax cash flow.
Taxable Income This is the portion of the Pre-Tax Cash Flow that is taxable.
Federal and State The five sources of income stated above are then taxed at average tax
Taxes* rate of0.00% Federal and a 0.00% State tax. This is the average tax
rate not your effective tax rate. Although your effective rate may be
28% your average tax rate could be 15%. *
After Tax Income After having paid estimated Federal and State taxes on your before tax
Available cash flow (not including Outside Investment Capital used), this
$60,000 is equal to your stated income need. If it is less than your
stated need it may be because you retire in the middle of the year and
only need a partiai amount of your stated income.
Mortgage Payment This is your annualized mortgage payment, if applicable.
Total After-Tax Income This is your stated income needed of $60,000 inflated at 3.00%.
Needed
Surplus/Shortfall This is the surplus or shortfall in the Total After-Tax Income Needed.
Outside Investment This is the amount of capital such as stocks, mutual funds, savings,
Capital Additions etc., that have been redeemed and added to your current outside
capital.
Outside Investment This end of year amount reflects any additions to and/ or any
Capital Remaining withdrawals from as described above. These liquid funds are assumed
to have a 2.00% after tax return for a value of $0 at retirement.
Roth IRA Remaining This is the remaining Roth IRA balance, less any withdrawals as
described above, compounded at the stated rate.
IRA/Savings This is the $1,119,370 total Rollover, less any withdrawls as described
Remaining above, compounded at 6.00%.
Net Asset Value This is the end of year total of outside investment capital plus the value
of your IRA(s).
* PLEASE SEE YOUR TAX ADVISOR AND READ THE DISCLAIMER ON THE NEXT PAGE
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November 11, 2013
Year{v Hypothetical Income Illustration Disclosure
Investments in securities are subject to market fluctuations and rates of return will not remain constant. Periods of
market decline will have an adverse impact on the figures presented in the accompanying chart.
Results depicted will vary upon implementation, market conditions, and securities used to fund your account.
Investors should not rely upon the hypothetical illustration presented as a guarantee of future results in the event
that the rollover option is selected.
The illustration presented provides data through a specified age period and illustrates an ending balance based upon
specified interest rate/ earnings assumptions. However, investors should note that due to market fluctuations, the
ending balance for this time period may be substantially lower depending upon market conditions and that ongoing
withdrawals may potentially deplete the account prior to the age/year demonstrated.
Information contained in this report has been obtained from sources we believe reliable, but no representation is
made to its completeness or accuracy. Any information provided herein is subject to change at any time without
notice. In some cases, you have provided information, and we assume, without independent investigation, that such
information is accurate. The Retirement Group is not engaged in rendering tax or legal advice and we make no
representation as to the tax consequences of the information herein.
Accordingly, investors are urged to consult their own tax/legal advisors. Rates of return are for illustrative
purposes only and do not represent any specific investment. Tax rates listed in the analysis are average rates. Your
actual rate may vary from the rate used in the analysis are for average rates. All deposits and withdrawals are
calculated as occurring on the first day of the year in which they appear. These include Social Security income, IRA
withdrawals, Future Work income, pre-tax cash flow, taxes, and investment capital additions. Net asset value listed
is an end of year value. Given your current circumstance we highly recommend that you continue to work a part
time job for the next 5- 7 years post retirement.
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Russ and Janis Howard's Yearly Hypothetical Income Illustration
After-Tax Income Available O')

Mortgage Paynient (0
-.::I"
Total After-Tax Income Needed 62,134 64,024- 65,972 67,978 70,046 72,176
Surplus/Shortfall
1,119,370 1,110,387 1,098,476 1,083,383 1,064,839 1,057,815 1,062,905
Net Asset Value 1,119,370 1,110,387 1,098,476 1,083,383 1,064,839 1,057,815 1,062,905
© 2012-2013 lhe Ret1rnment Group® 800-900-5867
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241 65
74,372 76,634 78,96 i

1
81,367 83,841 86,391 O')
(0
-.::I"
Total After-Tax Income Needed 74,372 76,634 78,96S 81,367 83,841 86,391 89,019
Surplus/Shortfall
Net Asset Value 1,066,822 1,069,406 1,070,540 1,069,427 1,065,851 1,059,580 1,050,365
465
IRA Mand. & Rule 72t Withdrawals 39,636 43,250

IRA Other/Savines Plan Withdrawals 240
91,727 94,517 97,392 100,354 103,406 106,551 0)

(0
-.::I"
Total After-Tax Income Needed 91,727 94,517 97,392 100,354 103,406 106,551 109,792
Surplus/Shortfall
Net Asset Value 1,037,939 1,022,017 1,002,29:J 978,437 950,100 916,904 878,448
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IRA Mand. & Rule 72t Withdrawals

IRA Other/Savines Plan Withdrawals
Pre-Tax Cash Flow 130,205 134,187 138,290 142,519 146,876 151,367 155,995
Taxable Income 124,567 128,436 132,424- 136,535 140,773 145,142 149,645
113,132 116,573 120,118 123,772 127,536 131,416 135,4131 0)

(0
-.::I"
Surplus/Shortfall
Net Asset Value 834,299 783,999 727,0H 662,938 591,088 510,902 421,7391
465

-.::I"
Surplus/Shortfall ~--' ''" l 1i\S6.l) { t 1+1+1 ·i) I 18,38'7)
322,913 213,690 93,289
Net Asset Value 322,913 213,690 93,289
465

-.::I"
Surplus/Shortfall ( ·i ~.: :~, +91}) {I~·!(, '7-%'7) { 3 j 3l ~ it)) ~ ~ ·~ (~.{--Fl i+c~,,~t8) {'l+Sl ·i c·iso,110;
Net Asset Value
465

-.::I"
Surplus/Shortfall ( ·i 1s -~-:'f" ( ·i 60,595) {j 6C,O§S) ~'7j,7)+) l77,f;08) Cl 8 )l 189,893)
Net Asset Value
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Pro-Cash Account
We also recommend that you establish a Pro-Cash Account for your non-IRA investments. The Pro-Cash
Account goes beyond a brokerage account by offering features like personal checking and a Pro-Cash
MasterCard CheckCard with no annual fee (requires credit approval). A Pro-Cash Account can organize
your finances, offer a competitive return on your assets, and provide greater convenience, reflecting your
banking and brokerage needs on one easy-to-read statement. Consolidating your assets in the Pro-Cash
Account makes it easy for you and your Financial Professional to monitor your portfolio performance while
acting on timely opportunities. In short, a Pro-Cash Account offers many advantages over a standard cash
account or conventional bank checking account and is ideally structured to provide you with ready access to
your capital.
Key Benefits
1 . You have control over your finances - the same financial control that large corporations and
sophisticated investors have had with their money for years.
2. You receive all financial activity in one consolidated statement. The Pro-Cash year-end statement
also helps you save time and money when working with your tax advisor.
3. With a Pro-Cash Account, you can walk into any banking location and cash a check or use any A TM
without incurring a fee.
4. Automatic investment of cash into your money-market investments 1 keeps your cash hard at work
all the time.
S. You have unlimited check writing, a MasterCard CheckCard, and complimentary Travelers Checks.
6. You have convenient Internet access to your brokerage account information through FSC Securities
Corporation Online premium service. This includes all positions, transactions, balances, research
reports, market commentary, market quotes, asset allocation, and more.
7. You receive the consultative, personal attention of an experienced Investment Officer.
Investing money wisely is only one important aspect of prudent money management.
Maintaining comprehensive records and having flexibility with that money are also
essential.
1
Investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money
by investing in the fund.
© 2012-2013 lhe Retirement lroup ® 800-900-5867
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The Importance of Outpacing Inflation

If you are like most Americans, your lump sum distribution of $1,119,370 probably represents the largest sum
of money you have ever received at one time. How you invest this capital will have a significant impact on your
financial situation for many years to come.
As we alluded to earlier, one of the most important facts to consider when investing your lump sum value of
$1,119,370, is inflation. This is commonly referred to as the annual increase in the cost of living. To maintain
your current standard ofliving at your target retire date, 12 / 31 / 2 013, your income must stay ahead of
inflation. If not, you may have to scale back your annual income goal, $60,000, or run the risk of depleting
your savings sooner than anticipated.
In recent years, inflation has cut the value of the U.S. dollar. Or, to look at it another way: If someone required
$25,000 to maintain his or her lifestyle in 1980, that individual would need substantially more to secure the
same standard ofliving today.
The table below shows how various inflation rates over different time periods affect the purchasing power of
$1,000.
Value of $1,000 at Various Inflation

Average Annual Inflation Rate*
10 $665 $539 $434
20 $442 $290 $189
1
Health and custodial care costs are among the most pressing expenses faced by individuals like you. Moreover,
government and private industry are dealing with the financial pressures of rising costs by passing on more of
the expense to individuals like you.
As you can see, inflation poses one of the greatest threats to your future financial security, since increases in the
cost ofliving can erode your purchasing power and change your standard ofliving.
Consumer Price Index has increased from 100 (in January 1982) to 218 (in September 2010), U.S. Department of Labor - Bureau of
Labor Statistics.
1
Table illustrates the compounding effect of hypothetical inflation rates over the period of 5-25 years.
© 2012-2013 lhe Ret1rement lroup® 800-900-5867
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OUR INVESTMENT STRATEGY

Tn rhAA~-ing thP. -:1pprApr-i-:1f-p. hL:::t.nrl nf rl-i,u::t.r~-ifip.rl -inuP..:!f-rnt=t.nt~ fr-.r yA11r ~pP.r-i-fir f-inC1nr-i-:11 nPP.rl~, n11r gr-.Cll -iii;.'! tr-.
provide you with enough income to ensure that your standard ofliving remains unaffected over time, and gives
you the growth potential you will need to keep ahead of inflation.
At The Retirement Group all of our clients have specific needs, objectives, and financial goals. Some want to make
sure their portfolios are highly conservative; others are interested in making sure their money has solid growth
potential. Still, others require portfolios with a healthy balance between growth and income.
Understanding that income is essential to individuals living in retirement, we recommend a laddered
investment approach that uses a combination of fixed income securities, mutual funds, ETF's, REIT's, common
stocks, variable annuities, and alternative investment managed by professional portfolio managers. Since cash
flow is necessary, all of our investments are designed to produce current or deferred income. Interest and
dividends, whether paid monthly quarterly, or semiannually, are used to replace your company check.
As a team, we prefer initially to construct a conservative portfolio and reinvest accumulated earnings and
returned principal. However, if you wish to devote a higher percentage of your initial capital to growth or risk
oriented investments, we also have the expertise to advise you in this area. Our plan is to strategically diversify
your investment capital among different investments to create balance within your portfolio.
For more complete information (including fees and expenses) on any mutual funds mentioned in this kit,
please contact our offices for a prospectus. Read this prospectus carefully before investing or sending
money.
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RETURN/RISK TRADEOFF: STi0CKS AND BONDS

1947 - 2010
14% ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~
13% Russ! wit~ a similar degree ofvolati!itlj, . ~ 100% sto~k

amounts mvestedfrom 1947-. 201 owould ~ l l & ~ stock, ·10%
12% have grown at 7.54%with a 20%!80% !lli 0% stac',- ~,;v Bonds
I\, Lu·ro
~r Bonds
~~0% Stc1ck, 30%
11% ~ Bonus
E ~ ~ 0 % Sfock. 40%
18 ~0°,\> S1 ock, 50lor,cis
-t·
.;!
£L
n:
~/4% Stoel<, ~f ds
/20% Stoc~Wo~
ll®
--. Bonds .
~
-~40% Stock. 60%
Bonds
0)
(0
-.::I"
0
7% ~ 10½Sto.ck •. '90%
.Bi d 100%
~Pock
\' ,,.,, 0%
6% "" Bonds
5% ----.----,-----,,---~---r----.------.--..------r----.-----.---..---~
5% 61' 1% 8% 9% 10% 11% 12% 13~, 14% 15% 16% 17%
Risk or Varlabllltyfstandal'd Deviation)
Source: !vlitchell, Hutchins, Inc. Underlying data is based on the Standard & Poor' s 500 index for Stocks and Ibbotson Associates' U.S. Intermediate-Term Government Bond index. Data has been obtained from sources that
we deem reliable. We do not represent that it is accurate or complete and it should not be relied on as such. Past performance is no guarantee of future results. lndexes are unmanaged; one can not invest directly in indexes.
465
Various Equity Indexes & 3-Month T-Bill
(Rolling 5-Yr Returns, 1980-2010)
18°/o
= 16%
~
= 14%
,,j,J
~
" 12%
"'O
~
-~
~
N
~
= 10%
=
<= 8% O')
(0
,;j"
6%
0% 5% 10% 15% 20% 25%
Standard Deviation of Annual Return
Disclosure: Index returns based on deifnitions below.

"S&P 500" defined as the Standard and Poor' s 500 Index.
"Large Growth" defined as the average of the Dow Jones Large Growth Index and Wilshire Large Growth Index
"Mid Growth" defined as the average of the Dow Jones Mid Growth Index and Wilshire Mid Growth Index
"Small Growth" defined as the average of the Dow Jones Small Growth Index and Wilshire Small Growth Index
"Large Value" defined as the average of the Dow Jones Large Value Index and Wilshire Large Value Index
"Mid Value" defined as the average of the Dow Jones Mid Value Index and Wilshire Mid Value Index
"Small Value" defined as the average of the Dow Jones Small Value Index and Wilshire Small Value Index
465
Investment Allocation for Russ and Janis Howard
This portfolio is divided into three parts: the first includes fixed-income investments, the second includes equities or
growth-oriented investments, and the third includes variable annuities. Each investment serves a specific purpose
within the portfolio. Together they are designed to create balance and diversification.
"Part One"is the fixed income portion of your portfolio. It is designed to assist in providing income on a
monthly, quarterly or semi-annual basis. They will be laddered appropriately to help you meet your monthly
income goal. These securities include bonds, money market instruments preferred stock, and structured
products. A variety of institutions issue debt obligations, including the US government, state and local
governments, publicly held companies, banks and savings and loans.
"Part Two" will be allocated to equity based investments. These include pubicly traded common stocks, mutual
funds. and ETFs. They will be used to diversify your porfilio into different sectors and used in an effort to help
lower portfolio risk.
Since January 1926 through March 2010, stocks as measured by the Standard & Poor's 500 index (a
composition of 500 large company stocks), have registered a 9.8% annual return, far outpacing the average
inflation rate of 3. 0% ( according to Ibbotson Associates, a securities research firm). Over that same period,
Ibbotson shows that small company stocks (stocks which are in the smallest 20% of the market's universe)
performed even better, averaging 11.9% per year.
"Part Three" will consist of a variable annuity. A Variable annuity is a tax-deferred retirement savings vehicle,
which may be able to provide a stream of retirement income through annuitization or withdrawal programs.
• Common stocks, as measured by the S&P 500, have outperformed inflation annually in 45 of the last 68 years. However,
past performance is not indicative of future results.
• The S&P 500 is not actively managed and cannot be directly invested into.
• Investors should not rely upon S&P 500 returns or Ibbotson data presented as a prediction or projection of returns that they
mav.I
exoect
J.
concerning0 the investment orooosal
J. .l
oresented
.l
.
• Sector investing involves a greater degree of risk than investments with broader diversification.
• All securities involve risk, including the potential loss of principal invested.
• Diversification of any portfolio cannot ensure a profit or guarantee against loss.
• In general, bond market is volatile, bond prices rise when interest rates fall and vice versa. This effect is usually pronounced
for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial
gain or loss.
• Variable annuities are long-term investments suitable for retirement funding and are subject to market fluctuations and
investment risk, including the possibility ofloss of principal. Annuities contain fees and charges which include, but are not
limited to, mortality and expense risk charges, sales and surrender charges, administrative fees, charges for optional
benefits and riders, and annual contract fees. Annuity guarantees, including guarantees associated with benefit riders are
subject to the claims-paying ability of the insurance company. Surrender charges may apply if money is withdrawn before
the end of the contract. All withdrawals of tax-deferred earnings are subject to current income tax, and, if made prior to
age 59½, may be subject to a 10% federal income tax penalty. Additionally, if purchased within a qualified plan, an
annuity will provide no further tax deferral features. The contract, when redeemed, may be worth more or less than the
total amount invested. All other benefits are available for an additional cost. It is important to weigh the costs against the
benefits when adding such options to an annuity contract.
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465
Investment Allocation for Russ and Janis Howard
Your retirement advisor, Richard Gigliotti, has constructed a sample portfolio as if you were to invest your
entire assets, $1,119,370, in retirement monies today. Thus, if economic conditions and your investment
objectives remain the same, we would still utilize their percentages to create your portfolio and to reinvest
your matured monies. If interest rates should change substantially, this, of course, would affect our
recommendations accordingly.
For example, if the potential rate of return of fixed income investments increases relative to the rate of return
of equities, we would be inclined to increase the amounts invested in fixed income. Conversely, if the potential
rate of return of equities increases relative to that of fixed income investments, we would recommend moving
money to equities.
The allocation on the following page indicates that; part one is primarily fixed-income, interest-bearing
investments designed to provide an expected return and future liquidity. The allocations in part two are total
return investments - that is, they utilize interest and dividends plus anticipated appreciation for their
estimated return.
Interest rates are averages over the last six months through 11/ 11/2013. All yields are net after commissions.
Stated yields may be higher or lower in the future.
- Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.
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PERCENTAGE ASSET ALLOCATIONS
Em Domestic Corp. Bonds
Em U.S. Treas. Securities
□ Preferred Stocks
D Other Investments
1111111 Managed lnvst. Portfolio
1ml Fixed Income
Em Variable Annuities
This figure is a graphical representation of the prior table, which listed elements from both the Fixed Income
and Growth Income allocations.This is what The Retirement Group refers to as a 60.00% / 40.00% portfolio. It is
one of our most common because it is a conservative yet aggressive blend. It is popular because it allows your
$1 , 119,370 the potential to grow at a reasonable rate, while at the same time keeping volatility to a minimum.
Richard Gigliotti recommends this portfolio to most of his clients who are born around your birth date of
5 I 5 I 19 5 6. However, we have a myriad of portfolios which we can tailor to meet your specific needs.
In your case, Russ, you can see $447,748 or 40.00% has been allocated to fixed income investments, while
$671,622 or 60.00% has been allocated to equity, growth-oriented investments. The exact allocation for your
$1,119,370 will be determined during our next meeting.
With your consent, we will rebalance your portfolio in the future, as economic and market conditions change.
We will also rebalance your portfolio, with your consent, should changes in your personal financial goals
warrant such a change. Just as you need to tune-up your car from time to time, your portfolio needs to be
adjusted periodically to best reflect your investment profile. Rebalancing is suggested to ensure that the original
asset mix remains in line with your goals. We suggest you speak with your advisor in greater detail about this
subject.
-No Investment strategy, such as diversification, can guarantee a profit or protect against loss in period of declining values
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FIXED INCOME ALLOCATION: DOMESTIC

CORPORATF. HONn~
ml Domestic Corp. Bonds
ml U.S. Treas. Securities
□ Preferred Stocks
D Other Investments
ml Fixed Income
ml Variable Annuities
These are secunt1es issued by companies, governments or other ent1t1es within the United States. Like
international bonds, domestic bonds pay a fixed rate of interest over a certain time period and mature on a
specific date.
There are three primary issuers of domestic bonds: United States government and government agencies,
municipalities and corporations. Each classification contains special features as to issuer, security (backing),
taxation, purposes for proceeds and so on.
A bond is a certificate of debt owed by the borrowing corporation to the bondholder. This type of security is
the first obligation of the borrower after it pays wages and salaries, small open accounts (tradesmen and
suppliers) and - in effect - taxes. Since bonds represent a contractual obligation of the issuer, interest and
rpp,;ayrnPnt f\f thP f-::1rP u,;al1u:. ,;at m-::1t11r-ity -i'-! ,::a L::.g,;al nhl-ig-::1t-inn. AAn,lhAl,·1':"'r'-! Af rnrpnr,::af-p -i'-!'-!11P'-! rn11'-!f- hP rPp"'.:1-irl
before any distributions can be made to the common or preferred stockholders.
Though interest on most bonds is stated annually, it is usually paid every six months. For example, an 8% bond
requires two semiannual distributions of 4% each. If interest is paid in January, the second payment is in July,
and so forth.
Most investors purchase bonds to obtain income. Prospective bond investors include those who want to
supplement social security and pension plan payments and investors who seek to balance their equity positions.
• Corporate bonds offer higher yields. There is more risk involved since companies are more likely to run into financial
problems than local governments. All earnings from a corporate bond are taxable.
• Corporate bonds are subject to risk and volatility. The bond market is volatile and bond prices rise when interest rates fall
and vice versa. This effect is pronounced for longer-term securities. Any fixed income security sold or redeemed prior to
maturity may be subject to a substantial gain or loss. Lower-rated debt securities involve additional risks because of the
lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility,
and increased risk of default.
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FIXED INCOME ALLOCATION: U.S.

GOVERN~1ENT-BACKED SECURITIES
Em Domestic Corp. Bonds
11115% Em U.S. Treas. Securities
D Preferred Stocks
□ Other Investments
Em Fixed Income
Em Variable Annuities
U.S. Government-backed securities consist primarily of U.S. Treasury bonds and notes. The main reason for
their popularity: These securities are backed by the "full faith and credit" of the U.S. Government, making
them among the safest investments available. Not once has a security issued by the U.S. Government or its
agencies ever defaulted or delayed payment of interest.
*Note: U.S. Government-Backed Securities/U.S. Treasury Securities are back by the "full faith and credit" of
the government, so they are considered the safest of all investments. Because of the high degree of safety,
interest rates are lower than other traded securities.
• Past Performance is not indicative of future results
• Securities are subject to market volatility
• The value of securities will fluctuate so that when redeemed, shares or units may be worth more or less
than original cost
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FIXED INCOME i\LLOCi\TION:

PREFERRED STOCKS
lllll Domestic Corp. Bonds

□ 5%
111111 U.S. Treas. Securities
□ Pref erred Stocks
D Other Investments
Elli Fixed Income
111111 Variable Annuities
Preferred stocks are securities that are semor to common stock that offer income and capital apprec1at10n
potential. While common stocks historically have had greater growth potential, preferred stock usually does not
fluctuate in price as much as common stocks.
Preferred stock also has certain prior claims over common stock. For example, preferred stockholders receive
dividends before common stockholders. And, preferred stockholders also have prior claims on a company's
assets.
Preferred stock of well-managed companies can offer a steady flow of dividend income. Dividends on traditional
fixed rate preferreds are paid quarterly. As a result, some of the highest grade preferred issues are as desirable for
income purposes as a high rated bond, except that bonds have priority status over preferred stock.
Many preferreds have a cumulative dividend feature, which provides protection in the event a company suspends
its dividends. This feature allows all dividends in arrears to accrue and be paid to the holder before the company
can pay dividends to common shareholders.
Variable, or adjustable-rate, preferred stock may also be purchased. Adjustable rate preferreds are sometimes
used as a hedge against higher interest rates. Yields on these issues tend to be lower than comparable fixed rate
preferreds due to their built-in inflation hedge.
Preferred stocks are an attractive investment for investors looking for income through dividend payments and less
volatility than common stock of a corporation.
Note: Investors in stock have no assurance that they will be able to recoup their investments in a stock at any
time. Stock prices fluctuate daily. International stocks are subject to currency declines since the stock is held in
companies located in foreign countries. Preferred stock fluctuates in price, value stock must be purchased at large
enough of a discount to allow room for error in an estimation of the stocks value, since there is no correct value,
and growth stocks are high risk investments that are often overvalued.
© 2012-2013 lhe Retirement lroup® 800-900-5867
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VARIABLE ANNUITIES
ml Domestic Corp. Bonds
1!111 U.S. Treas. Securities
D Preferred Stocks
□ Other Investments
1!111 Managed lnvst. Portfolio
ml Fixed Income
1!111 Variable Annuities
A variable annuity is a contract between an individual (the purchaser) and an insurance company (the insurer).
In return for premium payments, the insurer agrees to make periodic payments to the purchaser (if the
purchaser elects this option), beginning either immediately or at some future date. Deposits can be made by
either a single purchase payment or a series of purchase payments.
Purchasers of variable annuities have some control over the manner in which their annuity premiums are
invested (unlike fixed annuities). The investment options (or subaccounts) of a variable annuity will usually
include stocks, bonds, money market instruments, or some combination of the three. As the purchaser, you can
designate how your premium dollars will be allocated among the offered investment choices.
Variable Annuity Features
Like all annuities, variable annuities possess a unique combination of attributes:
Tax deferral: Taxes on the income and investment gains from the annuity are deferred until money is
withdrawn. Note that all distributed earnings are taxed at ordinary income tax rates and never at capital gains
rates. Distributions taken before age 59½ are subject to a 10 percent early withdrawal penalty tax on earnings,
unless an exception applies.
Periodic payments: Proceeds can be distributed in periodic payments for the life of the annuitant, or for the
lives of the annuitant and a spouse (or some other person). If this option is elected, the annuitant cannot outlive
the payment stream.
Death benefits: If an annuitant dies before reaching the annuity payout date, his or her beneficiary is generally
guaranteed a death benefit. (Guarantees are subject to the claims-paying ability of the issuing insurance
company.) The amount of the death benefit is usually the greater of an amount specified in the annuity contract,
or the amounts contributed to the contract and the investment income credited to the contributions, reduced
by any withdrawals made from the annuity. Annuity proceeds paid at the death of the annuitant will bypass
probate ifleft to a named beneficiary.
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Variable annuities are long-term investments suitable for retirement funding and are subject to market
fluctuations and investment risk including the possibility of loss of principal. Variable annuities contain fees and
charges including, but not limited to mortality and expense risk charges, sales and surrender (early withdrawal)
charges, administrative fees and charges for optional benefits and riders.
Variable annuities are sold by prospectus. You should consider the investment objectives, risk,
charges, and expenses carefully before investing. The prospectus, which contains this and
other information about the variable annuity, can be obtained from the insurance company
issuing the variable annuity, or from your financial professional. You should read the
prospectus carefully before you invest.
Certain riders and options relating to immediate annuities may be available for an additional fee or charge,
depending on the issuer. Read the annuity's prospectus or contract for a description of the available options and
associated fees and charges, if any.
Like other annuities, there are two phases to a variable annuity: the accumulation phase and the payout phase.
During the accumulation phase, you (as the purchaser of the annuity) make payments that are allocated to the
various investment options. You can typically transfer funds from one investment option to another without
paying tax on the investment income and gains.
After the accumulation phase, the funds are paid out (the payout phase). At the beginning of the payout phase,
you elect how you want the proceeds distributed--in a lump sum, as funds are needed, or annuitized over your
life, the joint life of you and another individual, or over a specific period.
The amount of each periodic payment you receive depends in part, of course, on how you elect to take payouts.
The Death Benefit
Variable annuities commonly provide a death benefit. The amount of the death benefit is specified in the
annuity contract, and it may be calculated as the greater of some guaranteed minimum (e.g., all purchase
payments minus withdrawals) or all the proceeds in the account at the time of death. (Guarantees are subject to
the claims-paying ability of the issuing insurance company.)
Many variable annuities allow you to choose a stepped-up death benefit for an additional charge. The stepped-
up benefit is a higher guaranteed death benefit, for which the insurance company charges extra premiums. The
advantage of these benefits is that you will know with some certainty how much your beneficiary will receive
when you die.
A number of other optional benefits can be purchased as part of a variable annuity policy to guarantee higher
streams of payments. Of course, these benefits add to the cost of purchasing the annuity.
Annuity Fees
Among the many major differences between mutual funds and variable annuities are the fees charged. Both
mutual funds and annuities charge a load (sales commission) plus a management fee (a fractional percentage of
the total assets). The sales load can be an up-front amount to buy into the fund or a deferred sales charge
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(surrender charge) that is applied only on withdrawals during the initial years after purchase (usually about
seven years).
Variable annuities also charge mortality fees that cover the cost of the guaranteed death benefit and the risk that
annuitants receiving lifetime payouts will live longer than expected. Other annuity charges include an
administrative fee to cover record keeping and other administrative expenses. This fee may be charged as a flat
account maintenance fee or as a percentage of the total account value. There may also be a fee for transferring
your money from one investment option ( subaccount) to another. This fee may be assessed if you exceed a
given number of free transfers in a year.
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APPENDIX I
i11.ccount, Fee, and Tax Free Bond Questions
How do I make withdrawals from the IRA?
In order to receive regular monthly distributions from your IRA Rollover, you must complete a periodic
distribution request form (also IRS Form 4174). In order to make all the necessary arrangements, you should
notify The Retirement Group at 1(800) 900-5867 a few weeks before you want to receive your first check.
Unless you change your monthly distribution requirements, your monies will be invested in a way designed to
satisfy your needs through monthly income, earnings and return of principal. You may elect to receive your
payments at the beginning or in the middle of each month, and they may be directed to your home address,
bank account, or transferred to another account.
What additional fees will I be charged?
An annual maintenance fee of $35 is imposed on all IRA accounts by Pershing LLC. In addition to the IRA
maintenance fee, you will be charged fees or commissions. Fees are built into the price you pay for an
investment, while commissions are added onto the price you pay for an investment. Broadly speaking, fees
apply to purchases of government bonds, unit trusts, some mutual funds, insurance products, and advisory
accounts. Commissions apply to other mutual fund transactions.
We endorse a philosophy of non-proprietary, low fee, low volatility, conservative investments at retirement.
Upon investment, we receive a fee or commission for the transaction. Thereafter, we earn our monies (fees and
commissions) only on any reinvestment of matured securities, earnings, dividends, or advisory fees.
Fees will vary according to the type of investment. The hypothetical investment yields in this report are posted
net offees. Fee's are typically on the low side of the total, while many firms will charge on the high side of the
total.
Brokered Certificates of Deposit: The fees are paid to us by the bank or the savings and loan for marketing their
CDs. It is often times less expensive for these institutions to raise capital through brokerage firms than to
advertise or solicit this capital on their own. For example, if you purchase a 6%, $10,000 brokered CD, this
investment will pay you $600 per year ($300 semi-annually), and will return your $10,000 at maturity. There
are no additional fees paid.
Are there any other special management fees charged for your services?
All of our services are complimentary, and we encourage you to take advantage of our Retirekit, seminars, and
monthly mailings, all at no charge. Our income is realized only on investment transactions, if any, which are
made at your discretion. The future growth of new clients is mainly through word of mouth by your fellow
retirees giving us referrals.
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APPENDIX II
Your Social Security Benefits
When to Start Collecting:
Collecting Social Security benefits before the age of 66 will permanently reduce your benefits to a percentage of
what you would collect by waiting until you are 66. The chart below gives approximate values for these
percentages.
Begin Collecting at Percentage of age 65 Benefits:

ae:e:
62 75%
63 80%
64 86.%
65 93.3%
Over 66 100.0% + .5% for each year worked between 66 and 70.
Additionally, those born after 195 8 choosing to collect their benefits at 62 will have their benefits reduced by
30%, rather than 20%.
A delayed retirement credit is payable to those workers who delay retirement past the full benefit age. For
those individuals born in 194 3 or later, this credit increases the full Social Security benefit by 2 I 3 of one
percent every month up to a maximum increase of 8% a year.
You can see that the incentive for waiting until age 65 may not be that great. However, there may be other
considerations, which will affect your decision. For example, taxes and continuing employment, which are
discussed in the following section. Remember, Social Security benefits may be reduced as a result of early
retirement. We have highlighted below the criteria in which your benefits are evaluated as of 2013. We will
also be having quarterly seminars in your area on Social Security and long term health issues.
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Taxes and Continuing Employment
Under the current tax law, your Social Security benefits may become taxable depending on your post
retirement income. Also, your Social Security benefits may be partially or fully reduced if you are considering
employment after your benefits begin.
1. Social Security will become partially taxable according to the following formula:
Adjusted Gross Income

+ Tax-Exempt Income
+ 85 % of Social Security Benefits
$44,000 (if married)
Excess
2. The amount of Social Security income subject to taxation will be the lesser of: 1 /2 of your Social
Security benefit, or 1 / 2 the excess of your combined income over the base amount (stated above).
3. Social Security benefits are reduced by $1 for every $ 3 of wages earned over the limits below:
Retire before age 65, Limit = $12,000

No limit if you retire at The Full Retirement Age:
Year of Birth: Full retirement age

1943-1954 Full retirement can be drawn at age 66
1955 Full retirement can be drawn at age 66 an 2 months
1957 P11l1 ri;::,.tiri=-mP.nt r-'ln hp. rlr-::1n,n -::1t age hh ".In h mnnthC'

1960 Full retirement can be drawn at age 67
4-. Earnings during any 35 years, beginning no earlier than the year in which you turn age 22, are taken
into consideration when calculating your Social Security benefits. Therefore, if you work less than 35 years,
your benefits may be reduced.
The Social Security Administration will now provide you with an estimate of your future benefits. Please call
them at (800) 772-1213 to request this information. When you receive the estimate from Social Security, you
may call us to get an updated Retirement Financial Plan with your new social security numbers. Because of the
consistent changes occurring on health care, we recommend attending one of our Social Security seminars.
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465
APPENDIX III
The 20% \X/ithholding Rule
Many of our AT&T-SBC retirees face another piece of legislation which may affect the retirement decisions
they must make. In September of 1992, President Bush signed into law HR 5260, which states companies that
manage retirement plans will be required to allow terminating employees to transfer their lump sums directly
to the Individual Retirement Account of the participant's choice.
As of December 31, 1992, if a participant directly received a distribution, the Plan Administrator is required to
send a 20 percent withholding directly to the Internal Revenue Service.
Participants may recover the 20 percent back from the government, but only if they make up the difference
when they put the lump sum into a qualified investment. As stated by law, this must be done in 60 days.
This law hits home when you consider your own situation:
An Example of How the 20% Withholding Rule Can Affect You
Russ at retirement will be age 5 7, and will have approximately $1,119,370 in your pension/ savings plan when
you retire. During this very stressful time, Russ, perhaps you forget about the 20 percent withholding rule.
Forty-five days later, a check for $895,496 arrives in the mail. That's your savings plan minus $223,874, the 20
percent tax that AT&T-SBC is sending to the IRS.
If you want the $223,874 back and also want to protect the tax-deferred status of your money, you must make
up the $223,874 difference yourself. You will then get the $223,874 back when you file your tax return next
April.
The second problem, Russ, could be if you roll over only $895,496. You will end up owing income taxes,
federal, and potentially state taxes; penalty taxes which could amount to as much as 50 percent in taxes and
penalties. The withholding tax can be avoided by telling AT&T-SBC to transfer the money directly to a
brokerage firm or bank as an IRA rollover.
It is important for AT&T-SBC employees like yourself to become educated and carefully consider your options.
We recommend going to our seminars in your area, reading our newsletter and working with your Human
Resources department before you invest your money. By investing a little time, you can avoid many potential
problems.
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For Most Retirees, Retirement is a Multi-step Process
■ Make copies of all election forms.

■ Notarize all appropriate documents.
■ Use certified mail for all correspondence to guarantee timely and accurate delivery.
■ Name Pershing LLC as your custodian in the appropriate area and have AT&T-SBC transfer the funds
directly to Pershing LLC, ensuring a proper transfer is completed.
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APPENDIX IV
R. ules Concerning Premature IRili. \X/ithdravvals
Rule 72(T)
Because you will be retiring from AT&T-SBC before you turn age 59½, it is important that you understand the
rules concerning early IRA withdrawals. Internal Revenue Code section 72(t) (1) imposes an additional 10%
tax on early (prior to attainment of age 59½) IRA withdrawals. There are two ways to avoid paying the 10%
penalty. First, if you have a qualified employee retirement plan and you transition out of AT&T-SBC after you
reach age 55, the 10% penalty will be excused. Two, if you transition out of AT&T-SBC before age 55, but you
need to take an early draw from your IRA, Section 72(t)(2)(A)(iv) provides that the additional tax will not
apply to distributions which are part of a series of "substantially equal periodic payments" made not less
frequently than annually. In addition, the code provides that if the method of payment is modified before either
5 years have elapsed from the date of the first payment or before the individual attains age 59½, whichever
comes later, the 10% tax will be retroactively imposed on the amounts distributed prior to age 59½. It is very
important to know that the IRS, not the broker, determines the payment amount that will be distributed
under section 72(t)(2)(A)(iv) of the Internal Revenue Code. In the case that the brokers' estimate of the
distributions differs from that of the IRS, the IRS's calculations will superceede that of the broker. The
distributions are calculated according to the Applicable Federal Rate (AFR), which is an interest rate that the
IRS deems "fair" when it computes imputed interest charges. The following table depicts how these rates have
changed over the last year:
Date Published Estimated
Treasury 120%
120% Mid- Mid-Term
Term
6/1/2010 3.27 3.31
5/1/2010 3.45 3.49
4/1/2010 3.25 3.27
3/1/2010 3.23 3.26
2/1/2010 3.39 3.41
1/1/2010 2.95 2.97
12/1/2009 3.16 3.18
11/1/2009 3.10 3.12
10/1/2009 3.20 3.20
9/1/2009 3.45 3.35
8/1/2009 3.37 3.29
7/1/2009 3.32 3.23
Please note that the effect of these rules has not been accounted for in the income projections shown earlier in
this analysis. Also, the following examples show estimated values, the actual values may be higher or lower.
We highly recommend that you seek advice from your tax advisor before making any decisions regarding early
IRA withdrawals.
72(t) programs are complex and can have adverse tax consequences if the program is not followed under
current IRS rules. there are significant penalties you may experience you makes any changes or modifications to
the program. Refer to IRS Ruling 2002-62 to find additional information concerning 72(t).
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Life Expectancy or Joint Life Expectancy

A payment is acceptable if it is calculated using a method which is acceptable for calculating the required
minimum distributions c!fter reaching age 70½. Thus, the payment amount may be determined using the life
expectancy of the IRA owner, or the joint and last survivor life expectancy of the IRA owner and his or her
designated beneficiary.
Example:
Russ, you will be age 57 with an IRA account balance of $1,119,370 as of 12/31/2013, Single Life Expectancy
(SLE) is 27.4 years. The substantially equal period payment for 2013 is the IRA account balance as of
12/31/2013 divided by the SLE of27.4.
$1,119,370---,-- 27.4 = $40,853
The amount to be withdrawn in 2013 will be calculated as follows:
Assume that the IRA earns 6.00% annually and that the 2013 distribution is made on the last day of 2013. The
value of the IRA as of that day will be $1,119,370 times 6.00% (rate of return) = $67,162 (earnings) plus
$1,119,370 (balance) less the $40,853 distributed= $1,145,679.
In 2014, since you are a year older, the applicable SLE is 27.4 years. This assumes that SLE is being
recalculated. However, you should be aware that you have the option of subtracting one year from the
previous year's life expectancy. To calculate the substantially equal periodic payment amount for 2014, divide
the IRA account balance of $1,145,679 by the recalculated SLE of 26.4 resulting in a payment of $43,397.
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Amortization Over Life Expectancy
A. second acceptable calculation method is to amortize your IR. A.. account balance over a number of years equal
to your single life expectancy (SLE) at an interest rate that does not exceed a reasonable interest rate on the
date payments commence. The life expectancy tables to be used are the ones to be used when calculating the
post 70½ IRA minimum distributions in accordance with proposed regulations 1.409 (a)(l )(9)-1.
Examples:
Again, Russ, you will be 57 years old, with an account balance of $1,119,370 on the date payments commence
in 2013.
You may amortize over the single life expectancy of 27.4 years. Let us assume that you had been earning 8%
but are now earning 10%. Since you may or may not continue to earn 10%, you may want to consider using
7%, 8%, 9%, or 10%. The following are the approximate payment amounts you can expect to receive:
Single Life
Rate of Return Expectancy of
27.4 Years
7% $91,937
8% $100,902
9% $110,187
10% $119,758
A.;;: ynn r;:'ln .;::pp, thP v::"lr-inn..: mPthnrl..: prr.rlnrP ..:-ign-ifir;:'lntly rliffPrPnt rP..:nlt..:. Tf yr.11 hnrl ynnr..:Plf -in thP pn..:-it-inn
of wanting to begin to take distributions from the IRA prior to attainment of age 5 9½, you should carefully
consider all the options available to you before selecting any one method. Remember, if you change the method
prior to attainment of age 59½ or before five years have elapsed since the first payment, whichever comes later,
the 10% penalty will be retroactively imposed on all distributions received prior to 59½. If you are close to
59½ years of age, you might want to consider taking a distribution and paying the penalty, rather than having to
adhere to a formal withdrawal schedule for five years.
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APPENDIX V
Early Retirement Seminars 101: Smart Tips for
Spotting Retirement Scams
For many Americans, retirement can be an alluring stage oflife-a time when many hope to finally have the
time to try new hobbies or travel. But retiring comfortably and being able to do the things you dream about
requires a steady stream of income that lasts as long as you do. The earlier you retire, the more important it is
to manage your retirement assets wisely.
Unfortunately, some financial "experts" tout early retirement schemes that promise more than they can deliver.
This brochure will help you avoid being misled by flawed or even fraudulent retirement pitches, particularly
those that dangle the prospect of early retirement with little or no reduction in income compared to your
working years. It describes real-life examples of fraudulent early retirement pitches, provides tip on how to
recognize and avoid these sorts of pitches and tells you where to turn for help.
What This Document Does Not Cover

Understand that this brochure does not cover early retirement packages that may be offered by your company.
For employer-sponsored early retirement programs, the best source of information will be your company's
human resources or benefits department.
Real-Life Example
Employees of a major corporation attended free seminars near their place of employment where a broker
pitched a strategy which recommended that they:
• Retire earlier than they might otherwise have done;

• Cash out of their 401 (k) plan or take a lump-sum payment for the cash value of their pension; and
• Open a traditional Individual Retirement Account at the broker's firm and invest in securities that carried
substantial risk and high fees.
During the seminars, the broker represented that these investments would generate aggressive annual returns
as high as 18 percent. Little mention was made of the risks associated with such an aggressive growth scenario.
The most obvious risk being that the value of the investments go up and down with changes in market
conditions. The pitch also failed to adequately explain that the overall return on the investments would be
reduced by various fees and expenses associated with the purchase and ongoing administration of the
investments.
Furthermore, the strategy recommended annual withdrawal amounts generally starting at 7.5 percent to 9
percent of the initial investment. While materials given to individual employees in one-on-one meetings
portrayed these rates as being sustainable for more than 30 years, they assumed returns of 11 to 14 percent.
The reality is that these rates proved unrealistic and were not achievable. Employees who followed the broker's
program could not maintain the recommended withdrawal amounts without depleting their retirement
accounts to levels that threatened their retirement security. By the time many of the employees realized this,
they had lost a significant portion of their retirement nest egg.
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Be Skeptical of Early Retirement Investment Claims
Because the allure of a leisurely retirement can be very tempting, and those who promote early retirement
schemes can be extremely persuasive, it's critical to think carefully before you act.
Signing on to an early retirement investment strategy presents risks. It only makes sense if you have saved
enough to begin with, make smart investment choices during your retirement years and withdraw money at a
rate that does not deplete your savings too early.
How much is enough? This depends on many factors, including other sources of income, such as a company
pension, rate of return on your investments and how long you live. You likely will need a savings nest egg that
is many times your current yearly earnings to provide enough income to live comfortably in retirement. For an
approximate estimate of how much savings you will need to accumulate, use the Employee Benefits Research
Institute' s Ballpark Estimate calculator.
Be skeptical if you hear:
• Everyone can retire early! The reality is that many employees simply do not have the resources to do so.
Early retirement is not feasible for many people and is particularly risky for workers who haven't saved
enough for an extended retirement and who have limited opportunities for other employment.
• You can make as much in retirement as if you continued to work! Promises like this usually hinge on
unrealistically high returns on investments and unsustainably large yearly withdrawals.
• You can expect returns of 12 percent or more! First of all, no one can predict what an investment will do
from one year to the next-and even if an investment performed well in the past, this is no guarantee it
will do so in the future. Second, any return over 10.4 percent exceeds the historical long-term returns for
the stock market (assuming all dividends were reinvested rather than spent), and greatly exceeds long-term
returns for less risky investments such as bonds, for which the average annual return over the long term is
less than 6 percent. Finally, the stock market is inherently volatile-it goes up, and it goes down. Over the
past 80 years, there have been many short term periods that produced returns well below the historical
average of 10. 4 percent.
• You can withdraw 7 percent or more and never run out of money! While there is no perfect consensus on
what this withdrawal rate should be, the uncertainty of return, market fluctuations and increased life
expectancies among other factors argue for being conservative with your withdrawals, especially during the
first years of retirement. Many experts recommend withdrawal rates between 3-5 percent per year,
especially in the first years of retirement.
What the IRS Says About Early Withdrawals from Your

Retirement Plan
In addition to the income tax you pay on most retirement plan

withdrawals, Section 72(t) of the Internal Revenue Code imposes an
additional tax of 10 percent on distributions from qualified retirement
plans-including traditional IRAs-made before age 59 ½. The IRS
does, however, allow you to avoid this 10 percent penalty if the
distributions from your retirement plan "are part of a series of
substantially equal periodic payments."
469
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These payments must last for five years or until you reach age 59 ½, whichever is longer, and IRS rules govern
how you calculate the amount of the payments. For more information on Section 72(t) and methods for
calculating payments, see the IRS's FAQs regarding Revenue Ruling 2002-62.
Tips to Avoid Being Taken In
Don't let the promise of easy money lure you into an early retirement you weren't otherwise considering.
Before you quit your day job (or night job) and invest your retirement savings, follow these tips:
• Be skeptical of II free lunch II seminars. Even if those events take place at or near the workplace, don't
assume that your employer is behind the event.
• Be wary of early retirement pitches based on little-known loopholes. While IRS Section 72(t) is
a "little-known loophole" that allows you to access your retirement funds early, there's a lot more to a
successful early retirement than avoiding a 10 percent tax penalty.
• Determine your willingness to live with an unpredictable amount of retirement funds.
Think hard before trading the relative certainty of a company pension-which may offer steady and
predictable payments for as long as you live-for the uncertainty of investments whose value fluctuates.
• Know your current plan. Many employers allow former employees to leave their 401 (k) assets in the
company's plan. Before moving your assets, take time to understand your current plan. You may find that
staying put is a sound and less costly option.
• Understand the tax bite. Before quitting and cashing in a 401(k), do a little math. Remember that even
if you avoid the 10 percent early withdrawal tax penalty, you won't be able to spend every penny. Instead,
you will have to pay ordinary income taxes on your withdrawals. Be sure to ask a tax professional about any
other potential tax consequences of your decision.
• Figure out the unintended consequences of early retirement. You may also wish to consult an
attorney about any other unintended consequences, especially if you are in debt or owe child support or
alimony. Depending on the laws in your state, cashing out of your retirement plan may mean that your
creditors can collect against that payment you receive-even if you're rolling the assets to a traditional IRA.
• Understand the diflerence between classes of mutual fund shares. Keep in mind that Class A
mutual fund shares may be the best choice if the investment amount is large enough to qualify for a discount
on front-end sales loads that may be offered for larger mutual fund investments and usually starts at
$50,000, but sometimes can be as low as $25,000. Use FINRA's Fund Analyzer to compare and calculate
mutual fund expenses.
• Consider the costs associated with variable annuities. Be aware that most variable annuities have
sales charges, including asset-based sales charges or surrender charges. In addition, variable annuities
impose a variety of fees and expenses when you invest in them, including mortality and expense fees,
administrative costs, and investment advisory fees.
• Check the speaker's credentials. Find out whether the person offering you investments is registered
with FINRA, which regulates brokers. Use FINRA BrokerCheckor call the FINRA Hotline at (800) 289-
9999. If he or she is registered, be sure to check out any red flags raised by employment or disciplinary
history. To check out an investment advisor, contact your state securities regulator or call (202) 737-0900.
• Get a second opinion. Before committing to an early retirement strategy, consult with a financial
professional of your choosing before taking the advice of someone who "found you."
Keep in mind that your retired life may be as long as, or longer than, your working life. Take the time to
research your retirement options carefully-before you leave the working world behind.
469
Case Russ
3:15-cv-00057-L-AGS
and Janis Howard Document 404-7 Filed 04/25/19 PageID.34049
November 11, 2013Page 153 of
465
RUSS AND JANIS HOWARD'S

INVESTOR PROFILE QUESTIONNAIRE
Presented by:
Richard Gigliotti
THIS PROFILE QUESTIONNAIRE IS INTENDED FOR USE WITH INDIVIDUAL, CORPORATE AND TRUST ASSETS FOR BOTH TAXABLE AND TAX-
DEFERRED ACCOUNTS INCLUDING IRAS.
FOR 401 (K), PENSION PLAN, ENDOWMENT OR FOUNDATION ASSETS, PLEASE USE THE APPROPRIATE QUESTIONNAIRE
The Retirement Group, LLC and FSC Securities Corporation are not affiliated companies
469
Case Russ
3:15-cv-00057-L-AGS
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INTRODUCTION
This questionnaire is designed to help you identify your investment objectives and evaluate different investment
options. This profile will help you define important factors including the length of time you have to invest, your tax
considerations, and your ability to withstand short-term market volatility that may affect the value of your
investment. Your feelings about investing and taking risks are also very important. This profile will help build the
base of information needed for the development of an appropriate asset allocation policy and comprehensive
investment plan.
INVESTOR PROFILE QUESTIONNAIRE
Investment Objectives:
The questions in this section will be used as a frame of reference for choosing the asset allocation that best matches your
investment goals.
A. What is your primary objective for this investment portfolio?
□ To assure the safety of my principal.

□ To generate income. If so, how much will you need annually?
□ To achieve a particular investment goal. If so, what goal(s)?
□ To accumulate assets for retirement.
□ Other. Please explain:
B. Given the fact that over the long run (from 1927 to 2000), U.S. stocks have generated
historical returns of about 11-13%, U.S. bonds have returned 5-6%, money markets have returned 3-4% and
U.S. inflation has been approximately 3%, what do you expect the total return of your investment to be over the
long-term?
□ 0 - 5%
□ 6 - 10%
□ 11 - 15%
□ More than 15%
C. If your investment portfolio suffered a temporary decline, could you cover your
immediate cash flow needs from other sources of assets?
□ No. There are no other assets that I could use to cover my immediate cash flow needs.
□ Yes. I have other assets that I could use to cover my immediate cash flow needs, but it would be difficult to
access them.
□ Yes. I have other assets that I could use to cover my immediate cash flow needs, but some advance planning
would be necessary.
□ Yes. I have other assets that I could use to cover my immediate cash flow needs.
D. Which of the following investments do you feel comfortable owning? Select all that
apply.
□ Cash and money market funds

□ Government bonds, mortgage bonds and municipal bonds
□ Other U.S. bonds - corporate bonds and high yield bonds
□ U.S. stocks
□ Developed markets international securities (stocks and bonds)
□ Emerging markets international securities (stocks and bonds)
□ Alternative investments (private equity, venture capital, hedge funds)
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3:15-cv-00057-L-AGS
465
E. Which types of investment vehicles are most suitable for your portfolio?
□ Mutual Funds
□ St:::pdldlt::: ALLUUHL~
□ Both Mutual Funds and Separate Accounts

□ Variable Annuity
□ No Preference
Risk Tolerance
The questions in the following sections will be used to identify an investment strategy that best matches your
investment goals.
A. Which of the following best describes the risk profile that you have in mind for this
investment portfolio?
□ A portfolio containing some high risk investments

□ A portfolio containing mostly low risk investments
□ A portfolio containing mostly high risk investments
□ A portfolio containing some medium risk investments
B. Which of the following statements best describes what your reaction would be if the value
of your portfolio suddenly declined 15%?
□ I would be very concerned because I cannot accept a decline in the value of my portfolio.
□ I invest for long-term growth but would be concerned about even a temporary decline.
□ If the amount of income I received was unaffected, it would not bother me.
□ I invest for long-term growth and accept temporary declines due to market fluctuations.
C. An investment decision involves the possibility of high return as well as the possibility of
suffering a loss. What influences your thinking the most when making an important investment decision?
□ I'm mainiy influenced by the potentiai gain.

□ I'm more influenced by the potential loss than the potential gain.
□ I'm more influenced by the potential gain than the potential loss.
□ I'm mainly influenced by the potential loss.
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Case Russ
3:15-cv-00057-L-AGS
465
D. EdLL yt::dI, Lhe vdlut:.: uf yuu1 ll1ve~Llllt::llL pu1 tfuliu will fluLtUdte d1' llldikt::u~ Lhdut,t::. If yuu
invested $500,000, which of the following portfolios (below) would you choose, with returns indicated for below
average, average and above average market returns?
□ Portfolio V
□ Portfolio IV
□ Portfolio III
□ Portfolio II
□ Portfolio I
One Year Range of Potential Portfolio Values
I II III IV V
E. Which of the following statements best describes what your reaction would be to short-term
fluctuations in this investment portfolio?
□ I would be extremely uneasy about any fluctuations in the value of my investment.

□ I would have very little concern about short-term fluctuations in the value ofmy investment.
□ I would be very concerned about short-term fluctuations in the value ofmy investment.
□ I would have some worries about short-term fluctuations in the value of my investment.
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465
Time Horizon
A. What is your time horizon for this investment portfolio?
□ 0 - 5 years
□ 5 - 10 years
□ 10+ years
B. Consider the following questions when answering:
□ Will you need to make a large withdrawal from this investment? If so, when?
□ How large of a withdrawal will you need to make?
□ How much do you plan to spend from this investment each year?
□ How much do you plan to contribute to this investment each year?
Additional Notes for Russ and Janis Howard:
Please Fax Completed Questionaire to 1-866-936-0750
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Why Ardent Retirement Planning?

• Only firm with 16 years working with retirees
• We use a referral based model
• T earn of knowledge that exceeds 150 years of
experience retiring employees.
• Updates: Ardent Blog and Weekly Conference Calls
• Five local advisors averaging 15 years of experience
• Offices located throughout the country
• In your buildings on a weekly basis
IIere is some basic infom1ation about The Retirement Grou . As you can see we
have extensive experience working with corporate employees like yourselves.
730-4
465
John Davenport
From: johnnotredame1@aol .com

Sent: Sunday, June 7, 2015 10:54 AM
To: sdalton@investmoney.net
Subject: San Diego Benchmarks (Callers & Lloyd Silvers)
Steve:
What is the relevance of these lists from Lloyd? Are they contacts or seminars?
Household Name
Alton Burns
Angela Watts
Antonieta Anaya
Arlene Bornes
Barbara Willner
Becky Miller
Belinda Jackson
Benjamin Gilmore
Bernie Howard
Beverly Smith
Billy Sanders
Blake Doyle
Bob Jones
Brian Beauregard
Bruce Crockett
Carl Doby
Carlyn Fleming
Cathleen Spencer
Cathy Stewart
Charles Loftin
Chere Belcher
Cheryl Meek
Christian Bourgeacq
Claudette McCamley
Craig Parrish
Craig Schiro
Cynthia Crawford
Cynthia Jackson
Cynthia Sparks
Dale Dugas
Daniel Coleman
Danny Green
Darcy Conner
David Ryan
Dean Taylor
DP1-
465
Deanna Muir
Debbie Chaput
Debra Jordan
Delaine Garcia
Della Hinojosa
Delores Williams
Denise Sanders
Denise Watson
Diana Sommers
Donald Bratton
Donald Hildebrand
Donna Lee
Douglas Dean
Dwayna Ensle
Eddie Enriquez
Edward Gonzales
Elaine Ulrich
Ellen Carroll
Elsie Dugan
Felix Arguijo
Frances Freeman
Frank Sprinkle
Franz Bunnell
Gail Espejo
Garth Yarnall
Gary Reich
Gay DeClaris
George Fisher
Geri Watts
Gerry Gardner
Gloria Catino
Gregory Ramirez
Gregory Williams
Holly Sanders
Ingrid Sompayrac
Irma Ruiz-Marez
Jack Davis
James Grissom
James Jarman
James Stewart
Janet Labonville
Janice Jones
Jerome Armstrong
Jeny Martinez
Jerry Neill
Jesse Seals
John Clark
2
465
John Dempster
John Greer
Johnny Baumbach
Jon Hammonds
Jose Gonzalez
Jumana Malbari
Karen Trahan
Kenneth Lovelady
Larry Pitre
Laura Crowell
Laurie Lalley
Leonard Coleman
Lewis Goodkouski
Lillian Dannenberg
Linda Newton
Lisa Taylor
Lloyd Burrow
Lynda Eaton
Lynette Lange
Marc Swiatek
Margaret Garcia
Marilyn Theberge
Mark Strong
Martin Schnell
Mary Hernandez
Mary Salas
Mellanies Pope
Neil Blackwell
Patricia Aukland
Paul WIiiner
Peggy Pyron
Philip Carrigee
Pierre Costa
Ralph Garcia
Randell Palasota
Rebecca Adcock
Rebecca Hogue
Rene Castillo
Ricardo Lopez
Richard Armstrong
Rick Turrentine
Robert Dalley
Robert Gabourel
Robert Keys
Robert Silvas
Robert Stevenson
Roel Arevalo
3
465
Ronald Pena
Ronnie Parsons
Ross Carter
Sam Parham
Saundra Syma
Sharron Venable
Sheri Herwig
Sidney Chachere
Stantley Hunt
Stephen Newberg
Steven Roebuck
Susan Robinson
Suzanne Bartlett
Sylvia Rangel
Tami Ameen
Tanya Greenfield
Ted Teinert
Theresa Donnell
Thomas Fiesel
Thomas Hernandez
Thomas Horn
Thomazine Porter-
Alexander
Timothy Madden
Timothy Wolf
Traci Potter
Tracy Stephens
Troy Penney
Valeria Chachere
Valerie Cramer
Vance Tschauner
Venessa Foster
Victor Coleman
Victor Todd
Vonda Maltie
Wesley Johnson
William Jaeger
Yvette Griffin
Yvonne Hughes
Household Name
David Peregrim
Luz Patino
Gregory Albi
Stephanie Rice
Haiyan Pu
Gail Black
Debra Ewanciw
Stacia Kargman
4
465
Bernard Doerning
Libo Xu
Michael Montagna
Sloan Stribling
Carol Readie
Natalie Riso
Verna Thomas
Christina Breda
Jeff Wynn
Beverly Eiserle
Wayne Greaves
John Furino
Arlene Roshak
Eric Keaton
Huifang Yao
Janine Pollard
Jeannie Tam
Melinda Hanisch
Wall Kimble
Madeleine Hays
Panagiotis Mavros
Elaine Rizzotto
Helene Fendelander
Susan Allen
Ashton Greenidge
Evelyn Marchany
Pia Para-Sanjujo
Lisa Bustos
Karin Peklak
Elizabeth Somers
Kevin Sylvestre
Stephen Munz
Jose Gonzalez
Laura Souders
Mark Ross
John Banka
Hetty Waskin
James lbezim
Jennifer Rotonda
Peter Smith
Theresa Cerrato
Audrey Lewis
Best,
John
Best,
John
5
Mele Asks For His Hottest Prospects
465
Three Days Before He Leaves

On Thu, Jan 8, 2015 at 7:28 PM, Tiffany Hill <thill@theretirementgroup.com> wrote:
Alex,
Attached is a list of TRG rospects that we have invited to seminars who you have talk to in the
past 60 days. I need to know yes or no (add to the sheet next to the name if you want these
people.
I need this asap.
Thanks
Tiffany Hill
TRGMGK021826 ATTORNEYS' EYES ONLY
960 -1
465
Davenport Testifies He Receives This

Document From Silvers
John Filed
04/25/19 PageID.34062 Page 166 of
June
465 16, 2017
·1· · · · BY MR. KLEIN:
·2· · · · · · ·Q.· · I would like you to take a look
·3· · · · at Exhibit 829, tell me what it is.
·4· · · · · · ·A.· · 829, this is a list of potential
·5· · · · clients that was sent over to me by Lloyd
·6· · · · Silvers.
·7· · · · · · ·Q.· · In or around June of 2015?
·8· · · · · · ·A.· · Yes.
·9· · · · · · ·Q.· · I would like you to take a look
10· · · · at 830.· This is an E-mail from Patrick
11· · · · Hinton.· Is that the lawyer you were
12· · · · referencing earlier?
13· · · · · · ·A.· · Yes, it was.
14· · · · · · ·Q.· · Now, I notice that Sean Sullivan
15· · · · is listed, do you know why he is on this?
16· · · · · · ·A.· · Because he was being represented
17· · · · also.
18· · · · · · ·Q.· · Take a look at 831.· Can you tell
19· · · · me what this is?
20· · · · · · ·A.· · 831.· Hang on two seconds.· That
21· · · · is an e-mail from myself to Steve Dalton
22· · · · talking about a roll over of $550,000 by
23· · · · Sean Sullivan and also giving him an update
24· · · · about the Wealthmax series that I was doing
25· · · · with John Mohammed.

(619) 573-4883 YVer1f
465
~ohn Daven~~ 11 I
From: johnnotredame1@aol.com
Sent: Sunday June 7, 2015 10:54 AM
i
To: sdatton@investmoney.net
Subject: San Diego Benchmarks (Callers &Lloyd Silvers)
Steve:
What is the relevance of these listsfrom Lloyd? Are they contacts or seminars?
HouseholdCase
Name
3:15-cv-00057-L-AGS H oFiled
Document 404-7 u seh o l d PageID.34064
04/25/19 N a m e Page 168 of
465
David Peregrim David Peregrim Mele
Luz Patino Luz Pat:ino Mele
Gregory Albl Gregory Albi Mele

Stephanie Rice Stephanie Rice Mele
Haiyan Pu Haiyan Pu Mele
Gail Black Gail B1ack Mele
Debra Ewanciw Deb:ra Ewanciw Mele
Stacia Kargman Stacia Kargman Mele
Bernard Doerning Mele
Bernard Doerning Libo Xu Me :l e
Libo Xu Michael Montagna Mele
Michael Montagna S ,l oa n Stribling Mele
Stoan Stribling
1C arol Readie Mele
Carol Readie
Natalie Riso Me :l e
Natalie Riso
Verna Thomas Verna Thomas Mele
Christina Breda Christina Bre,d a Mele
Jeff Wynn Jeff Wynn Mele
Beverly Eiserle Beverly Eiserle Mele
Wayne Greaves Wayn ,e Greaves Mele
John Furino John Furino Mele
Arlene Roshak A 'r ilene Roshak Mele
Eric Keaton Eric Keaton Mele
Huifang Yao Huifang Yao Mele
Household Name
Household Name
Document 404-7 Filed 04/25/19 PageID.34065 Page 169 of
465 Alton Burns
Alton Burns
Angela Watts Angela Watts
Antonieta Anaya Antoni eta Anaya

Arlene Bornes Arlene Bornes
Barbara Willner Barbara Willner

Becky Miller Becky Miiler
Belinda Jackson Belinda Jackson
Benjamin Gilmore Benj amin Gilmore
Bernie Howard Bernie Howard
Beverly Smith Beverly Smith

Billy Sanders Billy Sanders
Blake Doyle Blake Doyle
Bob Jones Bob Jones
Brian Beauregard Brian Beauregard

Bruce Crockett Bruce Crockett
Carl Doby Carl Doby

Carlyn Fleming Carlyn Fleming
Cathleen Spencer Cathleen Spencer
Cathy Stewart Cathy Stewart
Charles Loftin Charles Loftin
Chere Belcher Chere Belcher

465
Keating Group Testimony They Were

Using Memory, Excel, Post-Its And
Scraps Of Paper To Track Their
Business Is Hogwash
465
Keating Group Was Uploading

Customer Information To The Cloud
Before They Left TRG
465
Mike Confirms TRG Information Was

Being Uploaded To The Cloud
Michael
Case 3:15-cv-00057-L-AGS Document 404-7 FiledDalton
04/25/19 PageID.34069 Page 173 of
June
465 14, 2017
·1· would do; stocks, bonds, mutual funds, variable
·2· annuities, on and on and on.
·3· · · Q.· ·Okay.
·4· · · · · · · · · · · · ·EXAMINATION
·6· · · Q.· ·Okay.· 48, you say, "Keating, Gigliotti and
·7· Mele stated on calls they would copy the TRG client
·8· data," period.
·9· · · A.· ·It's a comma.
10· · · Q.· ·Was that said by all three of my clients?
11· · · A.· ·I can't recall if it was specifically said by
12· all three of them, but they didn't come out and -- it
13· wasn't a chest thumping session where they said, hey,
14· we're copying, but it was discussed in conference calls,
15· yes.
16· · · Q.· ·At least -- at least one of them said that?
17· · · A.· ·Yes.
18· · · Q.· ·And when they say would copy the TRG client
19· data, do you know if that was off of FSC's servers or
20· TRG's servers?
21· · · A.· ·I would have no idea.· I'm sorry.
22· · · Q.· ·Then you say TRG and FSC databases and
23· marketing materials -- okay.· So you say TRG and FSC
24· databases.· So you seem to be saying that they would
25· copy -- they said they would copy stuff off both TRG and

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34070 Page 174 of
June
465 14, 2017
·1· calls, so --
·2· · · Q.· ·By whom?
·3· · · A.· ·-- I was being --
·4· · · · · ·Lloyd Silvers, Steve Dalton, John Davenport.
·5· We were all on calls.· It was conference calls.· I was
·6· on those calls where that was being discussed, so I can
·7· only assume that we're not getting on conference calls
·8· to lie to each other, that that was actually taking
·9· place.
10· · · Q.· ·It was being discussed that they would be
11· uploading stuff, but you're not sure what it was or
12· where it came from?
13· · · A.· ·That's correct.
14· · · · · ·MR. REYNOLDS:· Okay.· Anyone else?
15· · · · · ·MR. KLEIN:· Yep.
16· · · · · · · · · · · · ·EXAMINATION
17· BY MR. KLEIN:
18· · · Q.· ·Were there discussions on those conference
19· calls about actually uploading information from the TRG
20· database?
21· · · A.· ·Yes.
22· · · Q.· ·Nothing further.
23· · · · · · · · · · · · ·EXAMINATION
24· BY MR. REYNOLDS:
25· · · Q.· ·And that's to be distinguished from uploading

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34071 Page 175 of
June
465 14, 2017
·1· · · · · · · · · · · · ·EXAMINATION
·3· · · Q.· ·53, "Silvers, Dalton, Keating, Gigliotti and
·4· Mele shared and stored files and documents on the Zoho
·5· platform as well as on Dropbox."· How do you know that?
·6· · · A.· ·That was told to me.
·7· · · Q.· ·By?
·8· · · A.· ·Lloyd Silvers on conference calls.
·9· · · Q.· ·Okay.· And what files and documents did -- was
10· he referring to?
11· · · A.· ·I couldn't recall.· I can't tell you.
12· · · Q.· ·Okay.· So basically he was just saying that
13· they used Zoho and Dropbox as a file sharing system?
14· · · A.· ·Right.
15· · · Q.· ·Okay.· That's all I have on that.
16· · · · · · · · · · · · ·EXAMINATION
17· BY MR. KLEIN:
18· · · Q.· ·You also say, "If a file was not available to
19· go into Zoho, then it would go into a system called
20· Google Drive or Dropbox."· Why do you believe that?
21· · · A.· ·Well, that's what was discussed, if it wasn't
22· available to put it in Dropbox or Google Drive to enter
23· in at a later time.
25· · · · · · · · · · · · ·EXAMINATION

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34072 Page 176 of
June
465 14, 2017
·1· · · question.· The witness answered Steve or Lloyd.· I'm
·2· · · assuming he means Steve Dalton and Lloyd Silvers.
·3· · · · · ·THE WITNESS:· That's correct.
·4· · · Q.· ·(By Mr. Hall)· But -- but somebody told you,
·5· correct?
·6· · · A.· ·I was informed, yes.
·7· · · Q.· ·So you have no personal knowledge to say that
·8· Keating, Gigliotti statements of denial of having signed
·9· any agreements is true or untrue, correct?
10· · · · · ·MR. KLEIN:· Argumentative.
11· · · Q.· ·(By Mr. Hall)· You can answer.
12· · · A.· ·Correct.
13· · · · · ·MR. REYNOLDS:· Okay.· All right.· Let's move on
14· · · to 60.· Does anyone want to cover 57, 58 or 59
15· · · before I get to 60?
16· · · · · ·MR. KLEIN:· What about 56?· No, that's all
17· · · right.· Sorry.· Will you give me one moment?
18· · · · · ·MR. REYNOLDS:· 56 as well.· I'm trying to leave
19· · · some time for you guys here.
20· · · · · ·MR. KLEIN:· I appreciate it.· No questions.
21· · · · · · · · · · · · ·EXAMINATION
23· · · Q.· ·Paragraph 60, "Silvers told me that among other
24· information, Keating, Gigliotti and Mele took
25· information from TRG that included the identities of

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34073 Page 177 of
June
465 14, 2017
·1· TRG's clients/prospects which included their age, hire
·2· date, anticipated retirement date, pension value,
·3· outside assets, combined net worth, whether they
·4· attended seminars, Sean Sullivan numbers, and
·5· beneficiaries as well as other confidential information
·6· useful in developing clients."
·7· · · · · ·Is it your testimony today that Mr. Silvers
·8· told you that?
·9· · · A.· ·Yes.
10· · · Q.· ·When did he tell you that?
11· · · A.· ·I can't recall.· It's in one of our hundreds of
12· calls.
13· · · · · ·It's important to note that I broke that down
14· as I could recall the information within, but it was all
15· confidential information.· That's what was -- that's
16· what was discussed.
17· · · Q.· ·So you mean -- you're saying that Silvers
18· didn't actually call out each of those data points by
19· name?
20· · · A.· ·A good portion of them, yeah.· I can't remember
21· which ones, but when you say TRG data, that is inclusive
22· -- for all of us who worked with TRG, that is inclusive
23· of all the items I have listed there.
24· · · Q.· ·So were you basically speculating or assuming
25· that that's what Mr. Silvers meant or is that what he

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34074 Page 178 of
June
465 14, 2017
·1· actually told you?
·2· · · A.· ·In working --
·3· · · · · ·MR. KLEIN:· Argumentative.
·4· · · · · ·MR. REYNOLDS:· I'm trying to understand his
·5· · · testimony.
·6· · · · · ·THE WITNESS:· In working with Lloyd as long as
·7· · · I had, I knew exactly what that meant, and that
·8· · · meant everything that I've listed there.· That's why
·9· · · I listed it.
10· · · Q.· ·(By Mr. Reynolds)· But that's not what he said?
11· · · A.· ·He didn't go through and hit each of these
12· bullet points.
13· · · Q.· ·Okay.· But he did tell you that TRG client
14· information was taken?
15· · · A.· ·Yes.
16· · · Q.· ·And he told you that TRG prospect information
17· was taken?
18· · · A.· ·Correct.
19· · · Q.· ·That it actually was taken, not that they were
20· talking about possibly taking it?
21· · · A.· ·Correct.
22· · · Q.· ·Okay.· But you don't remember when he told you
23· this?
24· · · A.· ·I don't.
25· · · Q.· ·How did this come up?

(619) 573-4883 YVer1f
465
Davenport Confirms Keating Group

Loading Information From TRG Into
The Cloud Even Before Leaving
John Filed
04/25/19 PageID.34076 Page 180 of
June
465 16, 2017
·1· · · · · · ·A.· · I could not tell you.
·2· · · · · · ·Q.· · You don't know what was being put
·3· · · · in the database and when?
·4· · · · · · ·A.· · That is correct, but I just know
·5· · · · it was being built prior to their
·6· · · · termination.
·7· · · · · · · · · ·MR. REYNOLDS:· That's all I have.
·8· · · · BY MR. EDGERTON:
·9· · · · · · ·Q.· · You just said it leads you to
10· · · · believe, so basically you don't know for
11· · · · certain, you just know they were building
12· · · · something.
13· · · · · · ·A.· · You know better than that.
14· · · · · · ·Q.· · No, I don't.
15· · · · · · ·A.· · Okay, well when I open up an
16· · · · office, create a database and we have a guy
17· · · · by the name of Lloyd Silvers building that
18· · · · database, who is speaking on a daily basis
19· · · · to the three of these parties that were in
20· · · · question here, about their clients and the
21· · · · transition of those clients over and they
22· · · · are building out that database well before
23· · · · they are actually terminated and moving
24· · · · over, I got to believe that information is
25· · · · going in there that shouldn't be going in

(619) 573-4883 YVer1f
John Filed
04/25/19 PageID.34077 Page 181 of
June
465 16, 2017
·1· · · · there.
·2· · · · · · ·Q.· · But you don't know for sure?
·3· · · · · · ·A.· · Of course not.
·4· · · · · · · · · ·MR. EDGERTON:· Okay.· Thank you.
·5· · · · BY MR. HALL:
·6· · · · · · ·Q.· · Mr. Davenport, do you know Matt
·7· · · · Nelson?
·8· · · · · · ·A.· · Yes, I do.
·9· · · · · · ·Q.· · When was he brought on to Ardent?
10· · · · · · ·A.· · He was brought on very early in
11· · · · the process when they were building the Zoho
12· · · · database.· Lloyd, as I said, knew the
13· · · · general structure having worked with John,
14· · · · but he was not a programmer, he didn't know
15· · · · how the build a database, so he employed and
16· · · · had previously worked with John Jastremski
17· · · · with Matt Nelson.
18· · · · · · · · · ·So Matt had worked with for John
19· · · · as well.· And so he basically used his
20· · · · skills to build the Zoho database.
21· · · · · · ·Q.· · Do you know if Mr. Nelson was
22· · · · also generating information to the database?
23· · · · · · ·A.· · I don't know.
24· · · · · · ·Q.· · Do you know if Mr. Nelson
25· · · · imported any data into the database as a

(619) 573-4883 YVer1f
To: Casea 3:15-cv-00057-L-AGS
lexanderjamesmele@gmaiLcom[alexanderja
Document 404-7 Filed 04/25/19 mesmele@gmail.com]
PageID.34078 Page 182 of
From: Zoho Projects 465
sent sun 1/4/201 5 11 :29:29 PM
Subject: Welcome to Zoho Projects
Hi
Welcome to Zoho Projectsl
Ardent has invited you to the ardentretirement portal
Here's what you can do:
• Be part of projects, create and keep track of tasks and subtasks

• Stay updated w i th whats latest using Feeds
• Upload files from Google Drive. Skydrive and Dropbox
• Propose ideas and engage in conversations at the forums
• Monitor progress over a chosen period of time using Gantt charts
63
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- --PLANNING- -
Conference Call Agenda - 8:00 pm EST 1
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Call (605) 475 - 3220 Enter Passcode: 953904#
1. Download process NetX

2 . Load into databases and cloud before exit.
3. Paperwork Population- HL) JW and TA
4. Minimize discoverable and subpoenas
5. Cara.ann Morrison, threejabrones@gmail .com
6. Callers to work
7 . La\vsuit preJJaration l r5v 1
8 . JK RG and AM uestions l)\\1"Dn ~ · 2.(, · I 1
465
Mike Authenticates
-&1111111-
ARDENT RETIREMENT
- - - Pi.ANNI.NC-- -
Conference Call Agenda - 8:00pm EST

12/17/2014

2. Load into databases and cloud before exit.
3. Paperwork Population- HL, JW and TA
5 . Cara.ann Morrison. threejabrones@gmail.com
6. Callers to work
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465
Davenport Authenticates Exhibit 567

John Filed
04/25/19 PageID.34082 Page 186 of
June
465 16, 2017
·1· · · · get a very sizable response from John
·2· · · · relative to taking his three -- well, this
·3· · · · one large producing group made up of these
·4· · · · three gentlemen and what we could do about
·5· · · · it.
·6· · · · · · ·Q.· · And this was roughly two months
·7· · · · after Keating, Gigliotti and Mele came
·8· · · · aboard, is that correct?
·9· · · · · · ·A.· · That is correct.
10· · · · · · ·Q.· · And I would like you to take a
11· · · · look at Exhibit 567.
12· · · · · · ·A.· · Okay.· I have it in front of me.
13· · · · · · ·Q.· · Can you tell me what it is?
14· · · · · · ·A.· · Once again, it's one of our
15· · · · conference call agendas dated 12/17/2014.
16· · · · · · ·Q.· · So this is before Keating,
17· · · · Gigliotti, and Mele left, is that right?
18· · · · · · ·A.· · Yes.
19· · · · · · ·Q.· · Now the call number is
20· · · · 605-475-3220.· Do you know whose call number
21· · · · that is?
22· · · · · · ·A.· · I do not.
23· · · · · · ·Q.· · Looking at item two.· It says
24· · · · load into databases and Cloud before exit.
25· · · · Do you know what that references?

(619) 573-4883 YVer1f
John Filed
04/25/19 PageID.34083 Page 187 of
June
465 16, 2017
·1· · · · · · ·A.· · That references the transfer of
·2· · · · information, non-proprietary information
·3· · · · from the TRG database into our database.
·4· · · · · · ·Q.· · And we go to item four and it
·5· · · · says, "Minimize discoverable and subpoenas."
·6· · · · Do you know what that's referencing?
·7· · · · · · ·A.· · No, I do not.
·8· · · · · · ·Q.· · The next item is "Care and
·9· · · · Morrisonthreedeem@Gmail.com.· Do you know
10· · · · what that references?
11· · · · · · ·A.· · I believe those were E-mail
12· · · · addresses that were going to be used by
13· · · · Keating and Gigliotti to be able to disguise
14· · · · who it was coming from.
15· · · · · · ·Q.· · I would like you now to look a --
16· · · · BY MR. REYNOLDS:
17· · · · · · ·Q.· · One question on point two.· Does
18· · · · that provide any additional -- your
19· · · · testimony about that right now.· That's
20· · · · basically the same testimony that you've
21· · · · given about that basis.
22· · · · · · ·A.· · No personal knowledge as to what
23· · · · it was, but we did discuss it on the call.
24· · · · · · · · · ·MR. REYNOLDS:· Okay, fair enough.
25· · · · · · ·Go ahead Gerry.

(619) 573-4883 YVer1f
465
Exhibit 567’s Authenticity

• This document in play since 2017 (ECF 198)
• Never once challenged until Opening
Statement
465
Mele Signs All Documents On

December 17, 2014 But Sticks Around
(Exhibit 205)
To: Alex
Case Mele[alexanderjamesmele@gmail.com1
3:15-cv-00057-L-AGS Document 404-7 Filed 04/25/19 PageID.34086 Page 190 of
465
From: DocuSfgn System
Sent on behalf of: Matthew Witt via DocuSign
sent Wed 12/17/2014 3:02:46 AM
Subject: Completed: Securities America - Notice & Acknowredgment and Advisor Profile
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Advisor Profile.pdf
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Summary.pdf
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465
Mele And Gigliotti Discuss Using Secret

Devices For “Scheming”
465
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465
Davenport Says The Plan Was To Steal

As Much TRG Information As Possible
John Filed
04/25/19 PageID.34091 Page 195 of
June
465 16, 2017
·1· · · · the protocol.
·2· · · · · · ·Q.· · I'm not talking about other
·3· · · · things as far as the brushfires, I'm talking
·4· · · · about client information.
·5· · · · · · ·A.· · I'm talking about client
·6· · · · information.
·7· · · · · · ·Q.· · Well, Let's talk about that.
·8· · · · You're to get the name of the client,
·9· · · · correct?
10· · · · · · ·A.· · Let me stop you here, if I may.
11· · · · · · ·Q.· · Sure.
12· · · · · · ·A.· · Because we're going to go by
13· · · · individual pieces of information and we
14· · · · won't get very far.
15· · · · · · · · · ·Steve was intending to get as
16· · · · much information from those three gentleman
17· · · · out of TRG as possible.· And that included
18· · · · not only individual accounts that they were
19· · · · currently servicing, but prospective
20· · · · information as well.
21· · · · · · · · · ·He was going to create as big a
22· · · · database of information and make these guys
23· · · · as successful as possible, as soon as
24· · · · possible as there was.
25· · · · · · ·Q.· · Okay.· Let's talk about existing

(619) 573-4883 YVer1f
John Filed
04/25/19 PageID.34092 Page 196 of
June
465 16, 2017
·1· · · · · · ·is 12:36 p.m. and we're off the record.
·2· · · · · · · · · (Whereupon, there was a pause in
·3· · · · · · ·the proceeding.)
·4· · · · · · · · · ·THE VIDEOGRAPHER:· This marks the
·5· · · · · · ·beginning of tape number three.· The
·6· · · · · · ·time now is 12:48 p.m.· We're back on
·7· · · · · · ·the record.
·8· · · · · · · · · ·MR. REYNOLDS:· Can you read the
·9· · · · · · ·last question and answer back?
10· · · · · · · · · (Whereupon, a portion of the
11· · · · · · ·record was read back by the reporter
12· · · · · · ·for the record.)
13· · · · · · ·A.· · Can I make a comment?· I just
14· · · · want to say again, we're talking to a lot of
15· · · · semantics here, but I want to make sure
16· · · · we're not misleading the jury.
17· · · · · · · · · ·Is the fact that there is broker
18· · · · protocol information.· Brokers leave and go
19· · · · to other broker dealers all the time.· And
20· · · · there is a protocol for moving from one
21· · · · broker dealer to another.· God knows I know
22· · · · it, I've done it many times.
23· · · · · · · · · ·The fact of the matter is I also
24· · · · know what information proprietary regarding
25· · · · those clients and until that client has

(619) 573-4883 YVer1f
John Filed
04/25/19 PageID.34093 Page 197 of
June
465 16, 2017
·1· · · · agreed to come over to see you, that
·2· · · · information is not available to you.
·3· · · · · · · · · ·In fact you can fill out any form
·4· · · · you want, but you cannot take all that
·5· · · · information relative to assets, age,
·6· · · · retirement date, objectives investment
·7· · · · horizon, any of that without that client
·8· · · · knowing that you are going to service that
·9· · · · client going forward.
10· · · · · · · · · ·And if I go and do that that is
11· · · · not correct.· If I want to take his name
12· · · · number and telephone to see if he still
13· · · · wants to be my client, that's fine.
14· · · · · · · · · ·But that wasn't what the case was
15· · · · here.· These guys were going out there and
16· · · · raiding that database to bring over it and
17· · · · create a database similar to what they just
18· · · · came from, so there will be no down time and
19· · · · they will continue to do their business just
20· · · · like they were doing the day before.
21· · · · · · · · · ·Let's not make any mistake to the
22· · · · people we're talking to here.· Because
23· · · · that's what's happening here.
24· · · · BY MR. EDGERTON:
25· · · · · · ·Q.· · I do have some questions.· That's

(619) 573-4883 YVer1f
465
Keating Admits He Needed As Much

Information As Possible To Service
Clients. The Keating Group Was Not
Going To Leave This Information
Behind
465
·1· BY MR. KLEIN:

·2· · · ·Q· ·Net worth?
·3· · · · · ·MR. EDGERTON:· Same.
·4· · · · · ·Can I just have a standing objection to this
09:50 ·5· line of questioning?
·6· · · · · ·MR. KLEIN:· Sure.
·7· · · · · ·MR. EDGERTON:· Because you're referring it
·8· to a list, and I don't think he's testifying about a
·9· list.
09:51 10· · · · · ·MR. KLEIN:· Well, I -- I'm going to -- let's
11· -- let's clarify.· I think he did, so --
12· BY MR. KLEIN:
13· · · ·Q· ·This is a customer list that you're
14· referring to, and information about customers on that
09:51 15· list; is that right?
16· · · ·A· ·So I have a database --
17· · · · · ·MR. REYNOLDS:· Yeah.
18· · · · · ·THE WITNESS:· -- of clients.
19· · · · · ·MR. KLEIN:· Right.
09:51 20· · · · · ·THE WITNESS:· Okay.
21· BY MR. KLEIN:
22· · · ·Q· ·Okay.· And so would you like the word
23· "database" instead?
24· · · ·A· ·Well, I'm not sure.· So -- so anything that
09:51 25· you would list down there I would say yes to.· I've

(714) 838-9119 YVer1f
465
·1· tried to get as much information.· So if you said

·2· their cousin's pet name, I would say yes to it.
·3· · · ·Q· ·Right.· So --
·4· · · · · ·MR. EDGERTON:· He made it clear he's talking
09:51 ·5· about a database.
·6· · · · · ·MR. KLEIN:· Correct.
·7· · · · · ·MR. EDGERTON:· You were talking about a
·8· list, which is like --
·9· · · · · ·MR. KLEIN:· Well --
09:51 10· · · · · ·MR. EDGERTON:· -- a list of names, so it's
11· two different sources of information, the way it was
12· phrased.
13· · · · · ·MR. KLEIN:· I wouldn't use the word
14· "Rolodex" anymore, so I think we all know what we're
09:51 15· talking about.
16· · · · · ·MR. EDGERTON:· Well, no.· I mean, a list is
17· something way, way more limited than a database.
18· · · · · ·MR. KLEIN:· Okay.· Well, we can argue about
19· that at a later date.
09:51 20· BY MR. KLEIN:
21· · · ·Q· ·So on this database you would also have the
22· customer's net worth, if you could get that
23· information; right?
24· · · ·A· ·Yes.
09:51 25· · · ·Q· ·And their preferences in terms of whether

(714) 838-9119 YVer1f
465
Keating Understood Ardent Would

Have The Same Business Model As
TRG
465
·1· BY MR. KLEIN:

·2· · · ·Q· ·Without tying you to the term "replica," was
·3· there any discussion at that dinner that Ardent
·4· wanted to create a business model that was similar to
11:12 ·5· what you'd experienced at TRG?
·6· · · ·A· ·Yes.
·7· · · ·Q· ·What did they say on that discussion,
·8· without distinguishing one from another?
·9· · · ·A· ·I don't -- the general idea was -- those
11:13 10· were not unique conversations.· I've had those
11· conversations with multiple recruiters.· It generally
12· goes, "Hey, are you an advisor that wants more leads?
13· We can provide those leads.· Come here and we'll make
14· you happy."· I mean, that's the general -- like
11:13 15· that's a very general conversation I've had with a
16· lot of different people.
17· · · ·Q· ·That's not really the question I was asking.
18· · · ·A· ·Okay.
19· · · ·Q· ·The question I was asking is did either
11:13 20· Mr. Dalton or Mr. Silvers tell you "We want to build
21· a company that uses the same model as TRG"?
22· · · ·A· ·I would generally say in that area, yes.
23· · · ·Q· ·What did they tell you on that point?
24· · · ·A· ·They told me that "We could give you more
11:13 25· leads, doing seminars and make you happier."

(714) 838-9119 YVer1f
465
Dalton’s Smoking Gun Admission

Dalton Admits Keating Group And
465
Dalton Are Stealing The Trade Secrets

7/1/14 8~9 PM
Seclllles Amllca already agreed to alterlng thir 11on11I approval process. No •I~, all ~II-school pen and pap1. Sam Immediate~
escalated my concams to Iha head of Bl, and the chief legal counsi waled In and he11cmnplelely on board • wil. The lawyer
there 1ld 11hey1111re ~~ renlng areprasentallve from 11oth1 firm. Ill ~ IIII JIWl1111111111
7/1/14 8~0 PM
955 -1
Impossible For Keating Group To “Hit
465
The Ground Running” Without TRG

Data
• Jastremski testified there is no way to keep
track of complicated financial estates without
the database
• 72T distributions a particular problem –
unrebutted
• Testimony they used Excel, notes, post-its
absurd
• Why did they stick around for months?
• Why the cloak and dagger antics?
465
Mele Says That The Broker Protocol

Provided Limited Information, And If
TRG Had More Information, They
Would Be At An Advantage
465
·1· · · ·A· ·Correct.· Yes.

·2· · · ·Q· ·'Cause that looks like you're not paying
·3· attention --
·4· · · ·A· ·I would --
10:32 ·5· · · ·Q· ·-- is that right?
·6· · · ·A· ·I would agree.
·7· · · ·Q· ·And so one of the things these notes help
·8· you do is know your customer, not just know your
·9· customer for FINRA requirements, but know your
10:33 10· customer for sales?
11· · · ·A· ·Correct.
12· · · ·Q· ·And the more you know, the better you're
13· gonna do; right?
14· · · ·A· ·I would say that's correct.
10:33 15· · · ·Q· ·And would you agree with me that there in --
16· strike that.
17· · · · · ·What do you get from the --
18· · · ·A· ·Excuse me.
19· · · ·Q· ·-- Broker Protocol?· What information do you
10:33 20· find?
21· · · ·A· ·I believe there's five pieces of
22· information.
23· · · ·Q· ·What is it?
24· · · ·A· ·Your name, your address, your e-mail, your
10:33 25· phone number --

(714) 838-9119 YVer1f
465
·1· · · ·Q· ·Account status?

·2· · · ·A· ·What's the fifth one?· Accounts --
·3· registration, accounts status, if -- if that's the
·4· same.· Yeah, registration.
10:33 ·5· · · ·Q· ·So you're not going to know that his wife's
·6· name is Wendy; right?
·7· · · ·A· ·You would not --
·8· · · ·Q· ·You're not going to know his --
·9· · · ·A· ·-- from those five.
10:33 10· · · ·Q· ·You're not going to know his kids are Jack
11· and Jill; right?
12· · · ·A· ·From those five piece- -- no.
13· · · ·Q· ·You're not going to know he's scared to
14· death of investing in stocks; right?
10:34 15· · · ·A· ·No.
16· · · ·Q· ·You're not going to know his net worth?
17· · · ·A· ·Nope.· You need to re-gather all of that.
18· · · ·Q· ·A lot of work?
19· · · ·A· ·Yeah, time-consuming.
10:34 20· · · ·Q· ·And if you can somehow save time by having
21· that information handy, it helps you in your sales,
22· doesn't it?
23· · · ·A· ·It would be illegal, so wouldn't do it and
24· didn't do it, but gathering it again was just the
10:34 25· process we had to go through.

(714) 838-9119 YVer1f
465
·1· · · ·Q· ·It takes a lot of time to do that, doesn't

·2· it?
·3· · · ·A· ·Yeah.
·4· · · ·Q· ·And when you were leaving TRG, you knew it
10:34 ·5· was going to take you a lot of time to get this
·6· information again, didn't ya?
·7· · · ·A· ·Yeah.
·8· · · ·Q· ·And is it true that you actually thought
·9· about it and said, "You know, it would be great if we
10:34 10· could get information from the TRG database so we
11· don't have to spend all that time"?
12· · · ·A· ·That's not true.
13· · · ·Q· ·And is it true -- do you remember me asking
14· Jeremy Keating about the Jerry Maguire movie and his
10:35 15· race to call clients?· Do you remember that?
16· · · ·A· ·I actually don't.
17· · · ·Q· ·All right.· Well, did you ever see Jerry
18· Maguire?
19· · · ·A· ·A while back.· I --
10:35 20· · · ·Q· ·All right.
21· · · ·A· ·-- probably only know the famous quotes from
22· it.
23· · · ·Q· ·Okay.· Well, do you remember when he leaves
24· the agency, there's a race to contact customers and
10:35 25· talk to them?

(714) 838-9119 YVer1f
465
·1· · · ·A· ·I don't.· It's been a long time.

·2· · · ·Q· ·Well, when you left, did you realize that
·3· TRG was going to be calling your customers?
·4· · · ·A· ·We knew that, yeah.
10:35 ·5· · · ·Q· ·And the more that TRG knew about your
·6· customers, the better position they were going to be
·7· in to get those customers to stay at TRG; right?
·8· · · ·A· ·I mean, we felt -- I -- I felt confident
·9· personally 'cause I -- I felt like I had a great
10:35 10· relationship with my clients.
11· · · ·Q· ·Could you -- I'm going to -- you don't have
12· to answer.· Just move to strike it.
13· · · · · ·Could you read the question again?· That was
14· a nonresponsive answer.
15· · · · · ·(Whereupon the record was read as follows:
16· · · · · ·Question:· And the more that TRG knew about
17· · · · · ·your customers, the better position they
18· · · · · ·were going to be in to get those customers
19· · · · · ·to stay at TRG; right?)
10:35 20· · · · · ·THE WITNESS:· I'd say yes.
21· BY MR. KLEIN:
22· · · ·Q· ·And, likewise, you wanted to make sure you
23· knew everything you could about those customers
24· 'cause you could help bond them to you rather than
10:36 25· TRG; right?

(714) 838-9119 YVer1f
465
Keating Says He Did Not Think Of

Leaving Until November 2014
465
·1· · · ·Q· ·Did you have any discussions or

·2· communications with anyone where you discussed
·3· destroying evidence?
·4· · · ·A· ·Not to my knowledge.
10:59 ·5· · · ·Q· ·Now, in TRG -- strike that.
·6· · · · · ·In December of 2014, you told me you had
·7· started thinking about leaving; is that right?
·8· · · ·A· ·Say that again.
·9· · · ·Q· ·Well, let me rephrase it.
10:59 10· · · · · ·When did you first start thinking about
11· leaving TRG, other than as a whim or some kind of
12· what if, but, you know, "I think I'm leaving"?
13· · · ·A· ·Yeah.· I'd say probably November.
14· · · ·Q· ·All right.· So in November, you came to the
10:59 15· conclusion that there was a high probability you
16· would leave TRG within, what, 60, 90 days?
17· · · ·A· ·I wouldn't say a time frame, but around
18· November I -- I was pretty serious about exploring
19· options.
10:59 20· · · ·Q· ·Had you been exploring options earlier?
21· · · ·A· ·Yes.
22· · · ·Q· ·We're going to come back to that, but I want
23· to focus on this particular issue.
24· · · · · ·From November of 2014 until the present,
11:00 25· have you destroyed any hard drives?

(714) 838-9119 YVer1f
465
Keating Actively Engaged In

Discussions In Early 2014 (Exhibit 594)
from: CaseLloyd Silvers
To: Steve Dalton; John Davenport 465
Subject: Fwd: contract
Date: Thursday, April 17, 2014 8:52:53 PM
This is the contract for Jeremy Keating. The other recruit up am working on should
have something similar as they signed at similar times.
Lloyd J. Silvers
Beg in forwarded message:
From: Jeremy Keating <jeremykeating@gmait.com>

Date: ARril 17, 2014 at 7:16:49 PM PDT
To: "Hoyd@silversconsultants.com" < Hoyd@silversconsultants.com >
Sub·ect: Contract
Hi,
Here's a link to a file in my Dropbox:
https://www.dropbox.com/s/1rkvp1na5pxlyk3/20140417165142. pdf
blflOlt 5f\:I
wi,NcH: Sj\ver5
D•"' 4-IIHJ
NVt<4.IIJI o.- rAolf.J___L_
. , _1 M $ -• f l ' ' c- 61 lO. Iii-
TRGMGK~598
465
Davenport Says Keating Not Leaving

Without A Duplicate
John Filed
04/25/19 PageID.34112 Page 216 of
June
465 16, 2017
·1· · · · · · ·A.· · I do not know, no.
·2· · · · · · ·Q.· · What type of prospects, if you
·3· · · · know, did he take from Ernst & Young?
·4· · · · · · ·A.· · I do not know.
·5· · · · · · ·Q.· · Basically I've exhausted the
·6· · · · level of your knowledge about this?
·7· · · · · · ·A.· · Yes.
·8· · · · · · · · · ·MR. REYNOLDS:· Anybody else?
·9· · · · · · ·Okay, second paragraph, number five on
10· · · · · · ·page four.
11· · · · · · · · · · · ·"Keating told me that a
12· · · · · · ·condition of on boarding at Ardent/SAI
13· · · · · · ·was that we had to develop and copy the
14· · · · · · ·TRG database because he knew that as
15· · · · · · ·soon as TRG terminated him, he would
16· · · · · · ·lose access to TRG's database, FSC's
17· · · · · · ·database and all the information in
18· · · · · · ·it."
19· · · · · · · · · · · ·Did Mr. Keating tell you
20· · · · · · ·this?
21· · · · · · ·A.· · Over the conference call, yes.
22· · · · He didn't tell me directly.· He just said it
23· · · · in the conference call.
24· · · · · · ·Q.· · Said it in the conference call.
25· · · · When was that?

(619) 573-4883 YVer1f
465
Briganti Says Deal Done In

October/November 2014
465
·1· · · A.· I have not.

·2· · · Q.· Were you aware that as of March 29th, the Keating
·3· ·Group was already expressing an interest in joining SAI?
·4· · · A.· I was -- I was not.
·5· · · Q.· Let's go to Exhibit 64, please.
·6· · · · · · · · · · · · · · (Whereupon, Exhibit 64 was
·7· · · · · · · · · · · · · · ·marked for identification.)
·8· · · · · · · ·THE WITNESS:· I have 64, sorry.
·9· ·BY MR. KLEIN:
10· · · Q.· Did you receive this email at any point?
11· · · A.· I don't remember seeing it.
12· · · Q.· By January 6th of 2015, did SAI know that the
13· ·Keating Group was going to move to SAI?
14· · · A.· It was -- well, as I stated I believe earlier, we
15· ·knew by the fall of 2014 they had intentions and were --
16· ·and were committed to move to us.
17· · · Q.· When?· When in the fall?
18· · · A.· I -- I mentioned previously, October to November
19· ·of 2014.
20· · · Q.· So by October or November of 2014, they had
21· ·committed to join SAI, is that roughly your best
22· ·recollection?
23· · · A.· That's my best estimate and recollection, yes.
24· · · Q.· Did they tell you when they were going to start?
25· · · A.· No, not specifically.
465
Cross Says She Could Onboard Them In

One Day
465
·1· · · Q.· But didn't Mele take longer?

·2· · · A.· I do not know.
·3· · · Q.· How do you know they were affiliated as of
·4· ·January 12th?
·5· · · A.· Because that was the date they became effective
·6· ·in our back system, so we would have received
·7· ·notification through the licensing process that they
·8· ·were effective.
·9· · · Q.· So it took all of one day to get the three
10· ·affiliated with SAI; is that right?
11· · · A.· That would have been up to FINRA and their home
12· ·state for that approval process, so if they became
13· ·effective on the 12th, then that would be correct.
14· · · Q.· And do you know why if -- and you weren't here
15· ·from Mr. Briganti's testimony, that he testified over an
16· ·hour or so ago that there isn't a commitment by the
17· ·three to leave until in October or November.· Are you
18· ·aware of that?
19· · · A.· No.
20· · · Q.· Do you have any reason to understand why it would
21· ·take only one day of onboarding them, but it took
22· ·actually two and-a-half months?
23· · · · · · · ·MR. EDGERTON:· Objection, lacks foundation.
24· ·Argumentative.
25· · · · · · · ·THE WITNESS:· Do you want to repeat the
465
Why Is The Keating Group Sticking

Around For Months?
465
Keating Deletes Critical Links To The

Cloud In November When He Knows
He Is Transitioning
465
Keating Caught In A Lie About His

Destruction Of Cloud Links
465
·1· specific, but I'm sure there's something.

·2· · · ·Q· ·What procedures do you follow to preserve
·3· text messages?
·4· · · ·A· ·I believe our phones have been -- I don't
11:51 ·5· know the terminology, but preserved by some
·6· third-party company.
·7· · · ·Q· ·All right.· But prior to giving it to the
·8· third-party company, did you delete texts consisting
·9· of communications among you and Mr. Gigliotti and
11:51 10· Mr. Mele?
11· · · ·A· ·No.
12· · · ·Q· ·So to the extent those texts occurred,
13· they're still preserved on that phone; right?
14· · · ·A· ·That would be my understanding.
11:51 15· · · ·Q· ·Let's talk about Dropbox.
16· · · · · ·When did you first start using Dropbox, if
17· ever?
18· · · ·A· ·I -- I don't recall.
19· · · ·Q· ·Now, did -- when you were working at TRG,
11:52 20· did you use Dropbox for business?
21· · · ·A· ·I believe so, yes.
22· · · ·Q· ·When?
23· · · ·A· ·Probably from when I started using Dropbox
24· in general.
11:52 25· · · ·Q· ·Was there a time when you stopped using

(714) 838-9119 YVer1f
465
·1· Dropbox?
·2· · · ·A· ·At TRG?
·3· · · ·Q· ·Yes.
·4· · · ·A· ·Yes.
11:52 ·5· · · ·Q· ·And when was that?
·6· · · ·A· ·To the best of my recollection, in November
·7· of 2014.
·8· · · ·Q· ·And why did you stop using Dropbox?
·9· · · ·A· ·I was told by the IT guy that I was getting
11:52 10· a new computer and I couldn't use Dropbox anymore.
11· · · ·Q· ·On the new computer?
12· · · ·A· ·Correct.
13· · · ·Q· ·Were you told why not?
14· · · ·A· ·No.
11:52 15· · · ·Q· ·And did you use Dropbox either for personal
16· reasons or business reasons between November 1, 2014
17· and January 15, 2015?
18· · · ·A· ·I don't recall.
19· · · ·Q· ·Did you provide any scripts for callers to
11:53 20· use in Jamaica?
21· · · ·A· ·No.
22· · · ·Q· ·Did you provide any scripts for callers to
23· use in Connecticut?
24· · · ·A· ·No.
11:53 25· · · ·Q· ·What cloud databases have you used since

(714) 838-9119 YVer1f
465
Talebpour Says Keating’s Testimony Is

False
Case 3:15-cv-00057-l -AGS Document 198-9 Filed 07/21/17 Page lD.7368 Page 3 of 4
465
They are not allowed to delete or alter anything on laptops or o~ier issued devices, as per the TRG
LLC "User Agreement" and or "Laptop Agreement'' which they an: required to sign before I can
allow access to any computer, database, or email account.
4 I am also responsible for revoking former employees, advisers or !C's access to TRG LLC
5 email and databases such as the SalesForce, following their termination. I revoke Cheir TRG LLC
6
network and database credentials, and either suspend and block them from theirTRG LLC email
account, or block them from their email and set up their inbound email to be automatically
forwarded 10 another person at TRO LLC per John Jas1remsld's instruction.

9
10
Hrik Larsen, TRG LLC's Chief Compliance Officer and OSJ is tasked with the
11 responsibility for communicating with FSC Securities and other companies with compliance
12 required third party websites to shut down database access such as Vision 20120, Client Cenlral,
13 One-View, Ne1x360. Netxpro, Albridge, Focal Web, Axa and Prudential Orion.
6. When a TRO LLC employee, adviser, or IC terminates n-om TRG Lt.C, and they
15
have a laptop, they are required to tum in their laptop directly to me so that I can review the
16
computer and the dala on that computer. In relation to Jeremy Keating's laptop, while he was an
17
18
employee for TRG LLC, I never installed or uninstalled the cloud software DropBox for Mr.
19 Keating, as he states in his declaration. I was not aware until his termination with TR.G LLC in
20 January, 2015, and had an expert analyze the data contained on that computer, that Mr. Keating had
21
DropBox software on his TRG LLC laptop. Using Dropbox.com software is against the company's
It is also important to clarify

24
that I never informed Mr. Keating in November 2014 that TRG LLC would be issuing him a new
25
26 laptop.
2
DECLARATION OF KEVIN TALEBPOUR
II
3:15-CV-00057-L-AGS
iilrsi• j#§@§Wh-➔ #fllW
465
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~ ·you.want me lo do?'
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'-ii
~
Text Message Exchanges Between465 Keating (Left) And Dalton (Right)
5/2/151 :52 PM
Yau IIJI didn't • Drapbax, did you? It's galng ta bl le flrst llng lat Kavin asks • •
5/2/15 1:53 PM
No we dldn1t, but Dropbox was on my wort computer In the pasL nwas unlnstallad In November o2014
1
5/2/15 1:53 PM
That Is a conversation
97 2 -1
1
465
Mele Signs All Documents On

December 17, 2014 But Sticks Around
(Exhibit 205)
To: Alex
Case Mele[alexanderjamesmele@gmail.com1
465
From: DocuSfgn System
Sent on behalf of: Matthew Witt via DocuSign
sent Wed 12/17/2014 3:02:46 AM
Subject: Completed: Securities America - Notice & Acknowredgment and Advisor Profile
Notice and Acknowledgrnenf.pdf
Advisor Profile.pdf
U4.pdf
Summary.pdf
......,, 206
'Mnrn :• • ; rn,t<
0.,., l /U>/iJ
Hl>.N.ea.._ . .. P'ACS«;_l__
L.e.• ~ •-,e.t,1 • •N,-1t
465
One Week Later, Mele Is Delivering His

Computer To Silvers (Exhibit 259)
I
256 1
ChBI# Body
+ 1 7608◄42089
LIOyd Slivers
Stike 200
465
•
Tlmestamp: Time
.
Read
Delivered: Time
12/2612014 ◄;◄0:54
PM(UTC-5) - -
12/211/2014
267 1 + 1 7606 ◄42089 Queslioos end a goOd altitude Reid 12/211/2014' 4:◄9:52 121211/201 4
Lloyd Sii'lers ,PM(\JTC-5)
26& 1 +17169600208 Whal ~hould I bring? Sent 1212&12014 4:so:oa 12/26/2014 12/26/2014 4:~!):04
Alex Mete PM(UTC--5) PM(UTC-5)
269 1 +17189.890208 Haha always got lhlll Sent 12/2612014 ◄ :55:22 12/2e/2014 12126/20U .◄ :55:22
Alex Mele PM(UTC-5) PM(UTC-5)
+17169690208. Gonna bring my laptop (personal) a~d-TRG. ,12/2~/2014 4:55:35:

AlexMele . . . . . . . .. ·PM(UTC-5)
252 1 -• 17189690208 Haha -Sent 12/2612014 ◄:56:◄9 1212612014 1212612014 4:56:49

Alex Mele PM(l)TC-5) PM(UTC-5)
-263 1 +.17169690208 .Ok Sent 12/2612014 4:5e:55 12126/2014 12/26/2014 4:56:55

Alex Mele PM(UT(;.5) PM(UTC' 5)
l!lU'U . . 1' isg

CONFIDENTIAL WitNU♦; ():)ii ( MGK009489
..... 1/2oh1
lfu-1• or P1o.• ••~
465
Mele’s Post-Termination Seminar

Attendees Have An 80% Match With
TRG Prospects (Exhibits 970 And 971
[Attendee Lists] 829, 960 and 961
[Prospect Lists])
465
Jeffrey E. Fields
From: ALEXANDER MELE < ALEXANDER.M ELE@secu ritiesameri ca.com>

Sent: Thursday, May 21, 2015 6:22 AM
To: LLOYD SILVERS
Subject: Sign In Sheet
Attachments: Sign In Sheet.pdf
Alexander J. Mele
Financial Advisor
(716) 969-0208 Mobile
(212) 390-1101 Office
(315) 215-3343 Fax
Alexander .Mele@securitiesamerica.com
www .ardentretirement.com
http://www.securitiesamerica.com/
Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered
through Securities America Advisors, Inc. and Arbor Point Advisors, Inc. Ardent Retirement Planning
and the Securities America companies are separate entities. Ardent Retirement Planning and Arbor
Point Advisors, Inc are separate entities.
1
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465
John Davenport
From: johnnotredame1@aol .com

Sent: Sunday, June 7, 2015 10:54 AM
To: sdalton@investmoney.net
Subject: San Diego Benchmarks (Callers & Lloyd Silvers)
Steve:
What is the relevance of these lists from Lloyd? Are they contacts or seminars?
Household Name
Alton Burns
Angela Watts
Antonieta Anaya
Arlene Bornes
Barbara Willner
Becky Miller
Belinda Jackson
Benjamin Gilmore
Bernie Howard
Beverly Smith
Billy Sanders
Blake Doyle
Bob Jones
Brian Beauregard
Bruce Crockett
Carl Doby
Carlyn Fleming
Cathleen Spencer
Cathy Stewart
Charles Loftin
Chere Belcher
Cheryl Meek
Christian Bourgeacq
Claudette McCamley
Craig Parrish
Craig Schiro
Cynthia Crawford
Cynthia Jackson
Cynthia Sparks
Dale Dugas
Daniel Coleman
Danny Green
Darcy Conner
David Ryan
Dean Taylor
DP1-
465
Deanna Muir
Debbie Chaput
Debra Jordan
Delaine Garcia
Della Hinojosa
Delores Williams
Denise Sanders
Denise Watson
Diana Sommers
Donald Bratton
Donald Hildebrand
Donna Lee
Douglas Dean
Dwayna Ensle
Eddie Enriquez
Edward Gonzales
Elaine Ulrich
Ellen Carroll
Elsie Dugan
Felix Arguijo
Frances Freeman
Frank Sprinkle
Franz Bunnell
Gail Espejo
Garth Yarnall
Gary Reich
Gay DeClaris
George Fisher
Geri Watts
Gerry Gardner
Gloria Catino
Gregory Ramirez
Gregory Williams
Holly Sanders
Ingrid Sompayrac
Irma Ruiz-Marez
Jack Davis
James Grissom
James Jarman
James Stewart
Janet Labonville
Janice Jones
Jerome Armstrong
Jeny Martinez
Jerry Neill
Jesse Seals
John Clark
2
465
John Dempster
John Greer
Johnny Baumbach
Jon Hammonds
Jose Gonzalez
Jumana Malbari
Karen Trahan
Kenneth Lovelady
Larry Pitre
Laura Crowell
Laurie Lalley
Leonard Coleman
Lewis Goodkouski
Lillian Dannenberg
Linda Newton
Lisa Taylor
Lloyd Burrow
Lynda Eaton
Lynette Lange
Marc Swiatek
Margaret Garcia
Marilyn Theberge
Mark Strong
Martin Schnell
Mary Hernandez
Mary Salas
Mellanies Pope
Neil Blackwell
Patricia Aukland
Paul WIiiner
Peggy Pyron
Philip Carrigee
Pierre Costa
Ralph Garcia
Randell Palasota
Rebecca Adcock
Rebecca Hogue
Rene Castillo
Ricardo Lopez
Richard Armstrong
Rick Turrentine
Robert Dalley
Robert Gabourel
Robert Keys
Robert Silvas
Robert Stevenson
Roel Arevalo
3
465
Ronald Pena
Ronnie Parsons
Ross Carter
Sam Parham
Saundra Syma
Sharron Venable
Sheri Herwig
Sidney Chachere
Stantley Hunt
Stephen Newberg
Steven Roebuck
Susan Robinson
Suzanne Bartlett
Sylvia Rangel
Tami Ameen
Tanya Greenfield
Ted Teinert
Theresa Donnell
Thomas Fiesel
Thomas Hernandez
Thomas Horn
Thomazine Porter-
Alexander
Timothy Madden
Timothy Wolf
Traci Potter
Tracy Stephens
Troy Penney
Valeria Chachere
Valerie Cramer
Vance Tschauner
Venessa Foster
Victor Coleman
Victor Todd
Vonda Maltie
Wesley Johnson
William Jaeger
Yvette Griffin
Yvonne Hughes
Household Name
David Peregrim
Luz Patino
Gregory Albi
Stephanie Rice
Haiyan Pu
Gail Black
Debra Ewanciw
Stacia Kargman
4
465
Bernard Doerning
Libo Xu
Michael Montagna
Sloan Stribling
Carol Readie
Natalie Riso
Verna Thomas
Christina Breda
Jeff Wynn
Beverly Eiserle
Wayne Greaves
John Furino
Arlene Roshak
Eric Keaton
Huifang Yao
Janine Pollard
Jeannie Tam
Melinda Hanisch
Wall Kimble
Madeleine Hays
Panagiotis Mavros
Elaine Rizzotto
Helene Fendelander
Susan Allen
Ashton Greenidge
Evelyn Marchany
Pia Para-Sanjujo
Lisa Bustos
Karin Peklak
Elizabeth Somers
Kevin Sylvestre
Stephen Munz
Jose Gonzalez
Laura Souders
Mark Ross
John Banka
Hetty Waskin
James lbezim
Jennifer Rotonda
Peter Smith
Theresa Cerrato
Audrey Lewis
Best,
John
Best,
John
5
465
ATTORNEYS' EYES ONLY
From: Alexander J. Mele [amele@theretirementgroup.com]

Sent: Thmsday, January 08, 2015 7:47 PM
To: TiffanyHill
Subject: Re: Prospects
Attachments: Mele Talk to last 60.xlsx
See attached list
Alexander J. Mele
...t
am, THE RETIREMENT GRO UPu,
PARTNERS I N R.E: TI RE!MENT
Office: 800.900.5867 x 112

Fax: 866.936.0750
Mobile: 646.543.9608
amele@theretirementgroup.com
www.theretirementgroup.com
Disclaimer
Privacy Policy
This e-mail and any attachments are intended solely for the use of the individual or entity to
whom it is addressed. It may contain information that is privileged, confidential and exempt, or
protected from disclosme under applicable law. If the reader of this message is not the intended
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hereby notified that any review, use, disclosme, distribution, or copying of this colllllnmication is
stJ.i ctly prohibited. If you have received this communication in e1rnr, please notify the sender
iIIlIIlediately and destroy all copies and attachments.
On Thu, Jan 8, 2015 at 7:28 PM, Tiffany Hill <thill@theretiremente:roup.com> wrote:

Alex,
Attached is a list of TRG prospects that we have invited to seminars who you have talk to in the
past 60 days. I need to know yes or no (add to the sheet next to the name) if you want these
people.
I need this asap.
Thanks
Tiffany Hill
960 - 1
465
Marketing Implementation Specialist

TI1e Retirement Group, LLC
10675 Sorrento Valley Rd. #100
San Diego, CA 92121
800-900-5867 X 111
960 - 2
465
Househ old Name

David Peregrim Mele
LUZ Patino Mele
Gregory Albi Mele
Stephanie Rice Mele
Haiyan Pu Mele
Gail Black Mele
Debra Ewanciw Mele
Stacia Kargman Mele
Bernard Doerning Mele
Libo Xu Mele
Michael Montagna Mele
Sloan Stribling Mele
Carol Read ie Mele
Natalie Riso Mele
Verna Thomas Mele
Christina Breda Mele
Jeff Wynn Mele
Beverly Eiserle Mele
Wayne Greaves Mele
John Furino Mele
Arlene Roshak Mele
Eric Keaton Mele
Huifang Yao Mele
Janine Pollard Mele
Jeannie Tam Mele
Melinda Hanisch Mele
Walt Kimble Mele
Madeleine Hays Mele
Panagiotis Mavros Mele
Elaine Rizzotto Mele
Helene Fendelander Mele
Susan Allen Mele
Ashton Greenidge Mele
Evelyn Marchany Mele
Pia Para-Sanjujo Mele
Lisa Bustos Mele
Karin Peklak Mele
Elizabeth Somers Mele
Kevin Sylvestre Mele
Stephen Munz Mele
Jose Gonzalez Mele
Laura Souders Mele
Mark Ross Mele
960 - 3
465
John Banka
Hetty Waskin Mele
James Jbezim Mele
Jennifer Rotonda Mele
Peter Smith Mele
Theresa Cerrato Mele
Audrey Lewis Mele
960 - 4
465
ATTORNEYS EYES ONLY
From: Tiffany Hill [thill@theretirementgroup.com]

Sent: Thursday, January 08, 2015 4:24 PM
To: Richard Gigliotti
Subject: Prospecls
Attachments: RG Talk lo last 60.xlsx
Rich,
Attached is a list of TRG prospects that we have invited to seminars who you have talk to in the
past 60 days. I need to know yes or no (add to the sheet next to the name) if you want these
people.
Most of them will have been mailed a gift basket or been invited to the TRG Houston Rodeo
BBQ.
I need this asap.
Thanks
Tiffany Hill
Marketing Implementation Specialist
The Retirement Group, LLC
10675 Sorrento Valley Rd. #100
San Diego, CA 92 121
800-900-5867 X l] I
961 - 1
465
ATTORNEYS EYES ONLY
Household Name
Alton Burns
Angela Watts
Antonieta Anaya
Arlene Bornes
Barbara Willner
Becky Miller
Belinda Jackson
Benjamin Gilmore
Bernie Howard
Beverly Smith
Billy Sanders
Blake Doyle
Bob Jones
Brian Beauregard
Bruce Crockett
Carl Doby
Carlyn Fleming
Cathleen Spencer
Cathy Stewart
Charles Loftin
Chere B@lcher
Cheryl M eek
Christian Bourgeacq
Claudette McCamley
Craig Parrish
Craig Schiro
Cynthia Crawford
Cynthia Jackson
Cynthia Sparks
Dale Dugas
Daniel Coleman
Danny Green
Darcy Conner
David Ryan
Dean Taylor
Deanna Muir
Debbie Chaput
Debra Jordan
Delaine Garcia
Delia Hinojosa
Delores Williams
Denise Sanders
Denise Watson
961 - 2
465
ATTORNEYS EYES ONLY
Diana Sommers
Donald Bratton
Donald Hildebrand
Donna Lee
Douglas Dean
Dwayna Ensle
Eddie Enriquez
Edward Gonzales
Elaine Ulrich
Ellen Carroll
Elsie Dugan
Felix Arguijo
Frances Freeman
Frank Sprinkle
Franz Bunnell
Gail Espejo
Garth Yarnall
Gary Reich
Gay DeClaris
George Fisher
Geri Watts
Gerry Gardner
Gloria Catino
Gregory Ramirez
Gregory Williams
Holly Sanders
Ingrid Sompayrac
Irma Ruiz-Mare.z
Jack Davis
James Grissom
James Jarman
James Stewart
Janet Labonville
Janice Jones
Jerome Armstrong
Jerry Martinez
Jerry Neill
Jesse Seals
John Clark
John Dempster
John Gr eer
Johnny Baumbach
Jon Hammonds
Jose Gonzalez
961 - 3
465
ATTORNEYS EYES ONLY
Jumana Malbari
Karen Trahan
Kenneth Lovelady
Larry Pitre
Laura Crowell
Laurie Lalley
Leonard Coleman
Lewis Goodkouski
Lillian Dannenberg
Linda Newton
Lisa Taylor
Lloyd Burrow
Lynda Eaton
Lynette Lange
Marc Swiatek
Margaret Garcia
Marilyn Theberge
Mar k Strong
Martin Schnell
Mary Hernandez
Mary Salas
Mellanit?s Pope
Neil Blackwell
Patricia Aukland
Paul W illner
Peggy Pyron
Philip Carrigee
Pierre Costa
Ralph Garcia
Randell Palasota
Rebecca Adcock
Rebecca Hogue
Rene Castillo
Ricardo Lopez
Richard Armstrong
Rick Turrentine
Robert Dailey
Robert Gabourel
Robert Keys
Robert Silvas
Robert Stevenson
Roel Arevalo
Ronald Pena
Ronnie Parsons
961 - 4
465
ATTORNEYS EYES ONLY
Ross Carter
Sam Parham
Saundra Syma
Sharron Venable
Sheri Herwig
Sidney Chachere
Stantley Hunt
Stephen Newberg
Steven Roebuck
Susan Robinson
Suzanne Bartlett
Sylvia Rangel
Tami Ameen
Tanya Greenfield
Ted Teinert
Theresa Donnell
Thomas Fiesel
Thomas Hernandez
Thomas Horn
Thomazine Porter-Alexander
Timothy Madden
Timothy Wolf
Traci Potter
Tracy Stephens
Troy Penney
Valeria Chachere
Valerie Cramer
Vance Tschauner
Venessa Foster
Victor Coleman
Victor Todd
Vonda Maltie
Wesley Johnson
William Jaeger
Yvette Griffin
Yvonne Hughes
961 - 5
465
Mike Says It Is Inconceivable To Fill

Seminars Without Stealing TRG Data
Michael
04/25/19 PageID.34151 Page 255 of
June
465 14, 2017
·1· · · A.· ·Litigation and proof for the reason.
·2· · · Q.· ·Go ahead.
·3· · · A.· ·I'm sorry.· And proof for the reason why TRG
·4· would litigate.
·5· · · Q.· ·And was the concern that actually you guys had
·6· done something improper and that it might be discovered
·7· in litigation?
·8· · · · · ·MR. HALL:· Objection.· Argumentative.· Calls
·9· · · for speculation.
10· · · · · ·MR. REYNOLDS:· I'll join that.
11· · · · · ·THE WITNESS:· Yes.
12· · · · · ·MR. KLEIN:· Nothing further.
13· · · · · ·MR. REYNOLDS:· David, do you want to go?
14· · · · · ·MR. HALL:· No.
15· · · · · · · · · · · · ·EXAMINATION
17· · · Q.· ·66, Silvers told me that among others -- told
18· me, among others, that Keating, Gigliotti and Mele were
19· able to immediately fill seminars within 90 days of
20· moving.· Did Mr. Silvers tell you that?
21· · · A.· ·Yes.
22· · · Q.· ·Can you think -- can you remember anything else
23· he told you along those same lines?
24· · · A.· ·Something about either like 70 percent of the
25· attendees were old TRG attendees, or two-thirds,

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34152 Page 256 of
June
465 14, 2017
·1· something along that line.· I can't be specific in
·2· remembering, but it was something like that.
·3· · · Q.· ·Did you have an understanding that Keating,
·4· Gigliotti and Mele were acquiring leads from sources not
·5· involving TRG?
·6· · · A.· ·I didn't track their -- their marketing
·7· efforts.
·8· · · Q.· ·Do you know what they were doing to develop
·9· leads?
10· · · A.· ·No.
11· · · Q.· ·And this is just what Mr. Silvers told you, not
12· what Keating, Gigliotti or Mele told you?
13· · · A.· ·Right.· This is what Silvers told me, or said,
14· rather.
15· · · Q.· ·At the end of that paragraph you say, "It is
16· inconceivable that they could have filled conference
17· calls with qualified prospects starting from point
18· zero."
19· · · · · ·So basically you're saying you're -- in your
20· opinion or your view it would be impossible to fill
21· seminars just going out and buying lists or other --
22· other sources to identify people?
23· · · A.· ·That's correct.
24· · · · · ·MR. KLEIN:· Incomplete hypothetical.
25· · · Q.· ·(By Mr. Reynolds)· Now, these folks that, for

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34153 Page 257 of
June
465 14, 2017
·1· example, Keating, Gigliotti and Mele worked on, they
·2· tend to work for one of a few companies, right?
·3· · · A.· ·As far as I know, yes.
·4· · · Q.· ·Was it really that difficult to find other
·5· people that worked at those same companies?
·6· · · A.· ·I can't speak --
·7· · · · · ·MR. KLEIN:· Calls for an opinion.
·8· · · · · ·THE WITNESS:· Yeah.· I can't speak to that.· My
·9· · · opinion would be I don't know.
10· · · Q.· ·(By Mr. Reynolds)· So what -- what is the basis
11· of your opinion that it's inconceivable that they could
12· fill seminars without stealing TRG data?
13· · · A.· ·Well, quite simply, because in order to fill a
14· seminar you just don't put your banner out there and
15· people come running into your seminar.· You have to have
16· the right market.· You have to have the right type of
17· prospective client and you have to appeal to the
18· prospective client, and you can't find out who those
19· prospective clients are, as we talked about earlier,
20· without having some of the intense data that TRG has.
21· · · · · ·So it's hard for me to believe that an advisor
22· leaving without any TRG data who had been at TRG data
23· for -- or been at TRG for three years could go out and
24· successfully put on a seminar where they fill the
25· seminar without that information.

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34154 Page 258 of
June
465 14, 2017
·1· · · Q.· ·Now, we're talking about prospects here, not
·2· clients that were ported over, right?
·3· · · A.· ·Right, prospective clients.
·4· · · Q.· ·So you couldn't pick up the phone to your
·5· existing clients that you've taken with you who work at
·6· one of a few companies that all these people and all the
·7· prospects work at those companies, too, and go, hey, do
·8· you have any friends that you work with that might be
·9· interested in going to my seminar?
10· · · A.· ·It would take --
11· · · · · ·MR. KLEIN:· Calls for --
12· · · · · ·THE WITNESS:· I'm sorry.
13· · · · · ·MR. KLEIN:· Hold on.· Hold on.· Calls for
14· · · speculation.· Argumentative.
15· · · · · ·THE WITNESS:· My answer to that would be it
16· · · would take a lot longer than 90 days to have that
17· · · kind of participation in a seminar without any of
18· · · that information.
19· · · Q.· ·(By Mr. Reynolds)· Would it be impossible to
20· have a dinner where you would invite your existing
21· clients at companies to invite their friends and then
22· have a seminar at a dinner like that?
23· · · A.· ·I'm sure it wouldn't be impossible.· I don't
24· know if the numbers would be the same or not.
25· · · Q.· ·How many people are typically in a seminar in

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34155 Page 259 of
June
465 14, 2017
·1· · · put marketing together for seminars in the past,
·2· · · over the past probably 10 to 15 years where I know
·3· · · that we don't invite five clients to a dinner
·4· · · seminar.· We invite 30 or 40 or 50 or 60 and I know
·5· · · TRG seminars, which is where they had their
·6· · · background, were typically 40, 50, 60 prospects
·7· · · deep.
·8· · · Q.· ·(By Mr. Reynolds)· Do you know how big the
·9· seminars were that Keating, Gigliotti and Mele, quote,
10· filled after they left TRG?
11· · · A.· ·I do not.
12· · · Q.· ·Okay.· Do you have any idea how many new
13· customers Keating, Gigliotti and Mele have even brought
14· on since they left TRG?
15· · · A.· ·I do not.
16· · · · · ·MR. REYNOLDS:· Anyone else have anything on 66?
17· · · · · ·MR. KLEIN:· Yes.
18· · · · · · · · · · · · ·EXAMINATION
19· BY MR. KLEIN:
20· · · Q.· ·Mr. Reynolds skipped a line.· Starting at line
21· 16 you say, "Silvers stated they filled conference calls
22· with qualified prospects which they had taken from TRG."
23· Did Silvers actually say that to you?
24· · · A.· ·That was said, yes.

(619) 573-4883 YVer1f
465
Exhibit 597 Confirms Mike’s Testimony

That The Plan Was To Copy Everything
Right Down To The Forms
OONFIOONTIAL
CaseExactly.
3:15-cv-00057-L-AGS Document
His issue right now is he j ust dcesnt
being a public disclosure.
404-7
want to see Filed
It disclosed 04/25/19
at all because PageID.34157
he's concerned about it Page 261 of
465
From: From: lloyd.silvers@gmail.com Lloyd J. Silvers
Tlmestamp: 5/20/2014 1:33:52 AM(UTC+O)
Source App: iMessage: lloyd.silvers@gmail.com
Body:
I have dealt with it before, existing dlents won't care and won't look unless prompted and with our program
he will have volume so If he loses one or two from it, it won't make a difference...these guys chase and bank.
on 2·3 accounts to open instead of having 10·20 in the pipeline

Timestamp: 5/23/2014 10:30:24 PM(UTC+0)
Body:
It's a replica of TRG
From: From: + 13175905755 Steve Dalton

Timestamp: 5/23/2014 11:13:04 PM(UTC+O)
Source App: iMessage: llqyd.silvers@gmail.com
Body: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Yikes! As in word for word? Or close? That will take some renovation.
-----••--•~-~M~------••---•••
Tlmestamp: 5/23/2014 11:17:20 PM(UTC+0)
Source A p: iMessage: lloyd.silvers@gmail.com
Body:
Some sections that I looked at are word for word .. .! com ared it to Keating's contract
-----------------~~---------
I'll take a look at it
Source App: !Message: lloyd.sllvers@gmail.com fiOO-llll lf 5'l\ 1
Body: w,~ ...., .:>live.rs
0 .,,... \,1--lt .-11
lilc-:///t."'/l.h~ll/Admiivl)ejk1op1Llayd'/410Tu:1%200ou/chat-94.txt(3129/2017 12:01:13 PM) N\INIJ'(A OP PA1:a.• : ~
TRGMGK609902 ~o.u~.,,11.. <:911 '1"16, IIPIII 51\1-1

Michael
04/25/19 PageID.34158 Page 262 of
June
465 14, 2017
·1· · · · · ·MR. ECKARD:· Object to the form.
·2· · · · · ·THE WITNESS:· Yeah.· Not if you were -- not if
·3· · · you were to say it generally.· That's not what we
·4· · · were trying to accomplish.
·5· · · Q.· ·(By Mr. Reynolds)· So you were trying to
·6· replicate the marketing and the data?
·7· · · A.· ·All the way down to the forms.
·8· · · Q.· ·Okay.· So let me ask you a few names and see if
·9· you've heard of them.· Have you heard of Hanson McClain?
10· · · A.· ·Yes.
11· · · Q.· ·Are they a lump sum -- do they use a lump sum
12· model?
13· · · A.· ·Yeah, but much different than The Retirement
14· Group.
15· · · Q.· ·How is it different?
16· · · A.· ·Hanson McClain has contracts with other
17· broker-dealers.· TRG is through one.
18· · · Q.· ·Okay.· How about Net Worth?· Have you heard of
19· them?
20· · · A.· ·Vaguely, not enough to speak on it
21· intelligently.
22· · · Q.· ·You don't know if that's a lump sum firm or
23· not?
24· · · A.· ·I'm not sure.
25· · · Q.· ·United Capital?

(619) 573-4883 YVer1f
465
Lujano’s Late Night Escapades And

“Bonus” Confirms Mike’s Testimony
That She Was Bribed To Steal Trade
Secrets
465
Han nah Luja no Time Card Analysis
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Michael
04/25/19 PageID.34161 Page 265 of
June
465 14, 2017
·1· · · Q.· ·And this is something -- this is something you
·2· prepared on your own with whatever documents you could
·3· find, correct?
·4· · · A.· ·That's correct.· This is my handwriting.· This
·5· was done by me.
·6· · · Q.· ·All right.· Let's take a look at what looks
·7· like number 7.· Can you read what you wrote there?
·8· · · A.· ·Jim White and Hannah were paid 10K apiece in
·9· December to bring information over.
10· · · Q.· ·Who told you that?
11· · · A.· ·We talked -- I talked about that with Lloyd a
12· couple times, I think twice.
13· · · Q.· ·Please read what you said in number 8.
14· · · A.· ·Ardent, dash, FA, dash, SAI 2012.· Steve taking
15· info with Matt Nelson for broker-dealer match; and in B,
16· early 2013, Davenport, Greer and Jones working with FA
17· for rollover and WealthMax; C is Davenport, Greer,
18· Harris, Olschofka -- I'm sorry.
19· · · Q.· ·I'm going to stop you there because you read
20· the part I'm curious about.· It said Steve taking info
21· with Matt Nelson.· What were you referencing?
22· · · A.· ·That was info for the broker-dealer match site.
23· That's where Steve was paying Matt to bring him, you
24· know, rep information -- prospective rep information,
25· excuse me.

(619) 573-4883 YVer1f
465
White Inexplicably Updating Salesforce

For Keating’s Customers Just Days
Before Keating Is Leaving
465
Keating, et al. v Jastremski, et al. James White
·1· · · · · ·(Exhibit 789 was marked for identification.)

·2· BY MR. KLEIN:
·3· · · ·Q· ·Let's take a look at Exhibit 789.· I'd like
·4· you to take a look at line 2019.
14:41 ·5· · · ·A· ·Okay.
·6· · · ·Q· ·All right.· At 2019, on December 19, 2014,
·7· there's an e- -- a text that goes to you saying, "How
·8· many needed to be updated percentage-wise?"
·9· · · · · ·Do you know who that's from?
14:42 10· · · ·A· ·It could have been me.· It's vague.· I don't
11· know what it's in reference to without seeing --
12· · · ·Q· ·Well, could it be from Jeremy Keating?
13· · · ·A· ·From Jeremy Keating to me?
14· · · ·Q· ·Yeah.
14:42 15· · · ·A· ·It's hard to say.· I mean, it says sent from
16· me, but I couldn't say.· I don't know.
17· · · ·Q· ·Do you remember him, during December of
18· 2014, asking you to get SalesForce updated as well as
19· you could?
14:42 20· · · ·A· ·I was -- that was part of my job, was to
21· update -- update SalesForce, client records and make
22· sure that it was accurate, whether it be a birth date
23· or a note or a lesson or action from a client.· That
24· was part of my job.· I would.
14:42 25· · · ·Q· ·Now, go to line --

(714) 838-9119
White 185:6-186:7
YVer1f
465
·1· · · ·A· ·What he was asking me to do, I don't

·2· remember --
·3· · · ·Q· ·Go to --
·4· · · ·A· ·-- based on just that there.
14:43 ·5· · · ·Q· ·Do you know what was being updated?
·6· · · ·A· ·I don't, not -- not knowing the context of
·7· the conversation.· I don't know.
·8· · · ·Q· ·In December of 2014, did Jeremy Keating give
·9· you instructions to update the FSC database?
14:43 10· · · ·A· ·I don't even know what the FSC database is.
11· · · ·Q· ·Did you take any steps, at any time while
12· you were working there, to make sure that FSC had a
13· database that was updated consistent with SalesForce?
14· · · ·A· ·I don't believe I had access to any FSC
14:43 15· database.· The only thing I had access to
16· database-wise, based on my understanding of the
17· database, would be SalesForce, which was --
18· · · ·Q· ·Well --
19· · · ·A· ·-- John.
14:43 20· · · ·Q· ·-- when information was changed in
21· SalesForce, was there any way for FSC to know that
22· unless somebody from your office advised them?
23· · · · · ·MR. HALL:· Objection.· Calls for
24· speculation, lacks foundation.
14:43 25· · · · · ·MR. KLEIN:· Let me rephrase.· Let me give

(714) 838-9119
White 185:6-186:7
YVer1f
465
·1· me what this is all about, if you can.

·2· · · ·A· ·Okay.
·3· · · ·Q· ·Are these texts that you wrote?
·4· · · ·A· ·I don't know.· Again, it's hard to assume.
14:48 ·5· Some are -- they're in my Inbox, some are sent, so
·6· my -- my phone number's referenced, so they were
·7· either sent to me or I received them from someone.
·8· · · ·Q· ·All right.· There's a text at line item 23
·9· to you on December 19, 2014.· Do you see that line
14:48 10· item?
11· · · ·A· ·Uh-huh, I do.
12· · · ·Q· ·Do you know who wrote that text?
13· · · ·A· ·It might have been Jeremy.
14· · · ·Q· ·It says, "Sorry dude!· Phone started at
14:48 15· 7:30!· Sort is called JK client a-b."
16· · · · · ·Is that Jeremy Keating's A-B list of
17· clients?
18· · · ·A· ·That was a sort in SalesForce, yes.
19· · · ·Q· ·Those were his top clients?
14:49 20· · · ·A· ·I -- I -- I believe so.
21· · · ·Q· ·And do you know why he was sending you a
22· sort in December of 2014 to identify his top clients?
23· · · ·A· ·I don't know that he was sending me a sort.
24· It may have been I was working that day and he wanted
14:49 25· me to call clients and that's who he wanted me to

(714) 838-9119 YVer1f
465
·1· start with is -- 'cause they're the most important.

·2· Maybe I needed to touch base and check in with them.
·3· I'm not sure what his instructions or what direction
·4· he was giving me outside of that because there was
14:49 ·5· really nothing specific referenced, that I can see.
·6· · · ·Q· ·And then a minute later, you write, "No
·7· worries.· Just go through and make sure all account
·8· numbers are on SalesForce."
·9· · · · · ·What does that mean?
14:49 10· · · ·A· ·He probably just wanted me to update the
11· account numbers that were on SalesForce.· I mean,
12· Jeremy was really particular about making sure
13· SalesForce was accurate.· So based on that, that
14· would just be part of it again.· If it was part of
14:50 15· a -- my day in calling clients and making sure their
16· account number's there, that's probably what I did.
17· · · ·Q· ·Did you do that on a weekly basis, monthly
18· basis, daily basis?
19· · · ·A· ·I tried to do it -- if I'd catch an account
14:50 20· number that wasn't there in a phone call, then I
21· would typically add it along the way, if it was
22· missing, for example, then -- yeah, that was part of
23· all of our jobs, make sure that everything was
24· accurate, whether it be an account number, name, date
14:50 25· of birth.

(714) 838-9119 YVer1f
465
Keating Gives White A Bonus

465
·1· assumed he was more serious, just because the

·2· conversations were more regular, but everyone, at
·3· some point, thought about leaving John's.
·4· · · · · ·The thing where I didn't know whether he was
12:21 ·5· going to leave, when he gave Hannah that bonus check,
·6· which was kind of in that time frame, and I'm like,
·7· "Well, if he's giving her that bonus check, maybe I'm
·8· not going with him," so, from my recollection, up
·9· until the last moment, I was really unsure.
12:21 10· · · ·Q· ·What was the check he gave to you?
11· · · ·A· ·I believe it was to cover -- it was
12· supplemental to what I was going to get from Dalton
13· Strategic.· It was going to be a supplemental check
14· to cover my pay for like the -- like a couple months
12:21 15· or whatever it was.
16· · · ·Q· ·How big was it?
17· · · ·A· ·I want to say 6,000, maybe, somewhere in
18· there.
19· · · ·Q· ·So I just want to understand your testimony.
12:21 20· · · · · ·Was he going to give you a $6,000 check even
21· though he told you he wasn't sure he was leaving?
22· · · ·A· ·I -- I don't remember the exact time frame
23· that he gave me the check.
24· · · · · ·(Exhibit 422 was marked for identification.)
25· ///

(714) 838-9119 YVer1f
465
Davenport And Mike Are Credible

Witnesses Who Truthfully Disclosed
What Happened
465
Exhibit 44 Corroborates Davenport

Testimony That Dalton Told Everyone
To Blind Copy On Emails
From: Stev, PA1t.9D. 465
Tq: )QHN PAYfNFPBt
sul,Jec:t: RE: John O,i°venp_
ort (WealthMax llmellrie).
O_ail•: . Moltday, •l\pfil 13, 20-is 7 :18;29 ·AM
~~~hnietlb: i,m.9#)0Lpna.
John,
In .the ftHlJre, ALWAYS bllndcapy eveJ. one, T_here:-c1re pec,ple on-that 11~.t, ·Tina,. for ex~mple, that
should not have contact info on anyone. SecondiyJ· some of these :people-are NOT Wealth Max
.candidates .- Mira cl~, for exampl~..-Further, Jan arid Jeremy ~re :both .elther-·JN liti&atjon, or on the
c;1,1sp c;,f,st_ This ~,·nail fs discoverabl.e. Please e~n.-fl (Hrect lrislead -pf- 1 c◊nlpany :biasts1 •
Reg~rds,
Steve- Dalton
Mat,a~in~ Partr\er,_.Oaltofl Strategic
Gentleman:
A5 1discussed In my last email to you, we should have the WealthMax book/binder-ready by month's
end. In the me{lntimf, for those of you who have expre$Sed an intere-st in moving forward with a
WealihMax campaign, I have atiached th~ WealthMax.limeline spreadsheet for use In delermin!nc
the dates for your first campa)gn. TypicaOy, a Wealtj,Max campaign consists of 4 dinners of
anywhere from 8 to 10 couples over two weeks. These couples typically have an average net worth
of $4,000,000 or more. We like to host U1e dinners on Tuesday and Thursday of consecutive weeks.
Yo~ use the spreadsheet by entering the date of the first dinner aod then the spreadsheet will
automatically update and show you the torget dates for all the stops leading up to your first dinner•.
Les ;ind I will follow up sometime later this week with a call t~ Jan fvlohamcd, Jeremy Keating,
Rlcha.rd Giglotti, Don Hartmann, and Alexamdcr Me.le to hopefully schedule your first campaign and
to begin lookln8 at t he demographics in your respective areas. An·t of those I have not mentioned
44 -1
465
Silvers Calls Davenport Declaration Just

“A Little Bit Misleading”
465
Keating, et al. v Jastremski, et al. Lloyd Silvers
·1· · · ·A· ·I believe, again, it would have been roughly

·2· a month.
·3· · · ·Q· ·So December/January time frame?
·4· · · ·A· ·Yes.
10:14 ·5· · · ·Q· ·What did you talk about?
·6· · · ·A· ·Again, follow-up.· John's kind of a
·7· procrastinator, so we basically have the same
·8· conversation over and over again, and "I want to get
·9· this started" type of thing.
10:14 10· · · ·Q· ·When's the next time you had a call with
11· John Davenport?
12· · · ·A· ·I believe the last one would have been end
13· of January/beginning of February.
14· · · ·Q· ·What was that call about?
10:15 15· · · ·A· ·That was about finally, you know, getting
16· out some of the stuff that he wanted to do, some of
17· the marketing stuff.
18· · · ·Q· ·At the time, had you seen his declaration?
19· · · ·A· ·I don't -- I don't believe so.· No.· I can
10:15 20· absolutely tell you that.· I hadn't seen it.
21· · · ·Q· ·When's the next time you had a call with
22· John Davenport?
23· · · ·A· ·Since then, I have not spoken to him.
24· · · ·Q· ·So at some point you saw the declaration of
10:15 25· John Davenport; is that right?

(714) 838-9119 YVer1f
465
·1· · · ·A· ·Correct.

·2· · · ·Q· ·And did you -- you were shocked?
·3· · · ·A· ·Well, "shocked" is a little strong.
·4· · · ·Q· ·Surprised?
10:15 ·5· · · ·A· ·I would go with annoyed.
·6· · · ·Q· ·Why were you annoyed?
·7· · · ·A· ·Well, because these are all things that
·8· he's -- I'm pretty sure he knows are a little bit
·9· misleading.
10:15 10· · · ·Q· ·What do you mean "a little bit misleading"?
11· · · ·A· ·There's not a whole lot -- I don't think
12· there's a lot of -- how do I -- do I -- can I say
13· "accuracy" to it? -- accuracy to it.
14· · · ·Q· ·So it was a lot misleading?
10:16 15· · · ·A· ·Well, okay.
16· · · ·Q· ·Outright false; right?
17· · · ·A· ·I can -- I can go through them probably
18· and --
19· · · ·Q· ·We will.
10:16 20· · · ·A· ·Oh.
21· · · ·Q· ·But as --
22· · · ·A· ·Okay.
23· · · ·Q· ·-- you sit here today, you saw a declaration
24· that you believed, in sum and substance, was false;
10:16 25· correct?

(714) 838-9119 YVer1f
465
Keating Does Not Ask If Any Of The

Allegations In The FACC Are True –
Because He Knows They Are True
465
·1· come from Davenport?

·2· · · ·A· ·Not specifically.· I -- I believe it was a
·3· "The name's not on the lawsuit.· You have these other
·4· things that don't make sense."
15:33 ·5· · · ·Q· ·Well, did you ask him, "Steve, is any of
·6· this true?"
·7· · · ·A· ·No.· I've -- in my dealings with John
·8· Davenport, I don't have a lot of respect for him, so
·9· I -- you know --
15:33 10· · · ·Q· ·Well, I'm thinking Davenport -- I mean, the
11· pleadings don't say John Davenport said that; right?
12· These are just allegations --
13· · · ·A· ·That's right.
14· · · ·Q· ·-- right?
15:34 15· · · · · ·Did you ask Steve, "Hey, is any of this
16· stuff true?"
17· · · ·A· ·I don't recall doing that, no.
18· · · ·Q· ·I mean, were you concerned when you're
19· reading these allegations about a 25 point plan,
15:34 20· destroying TRG, did you go, "Steve" --
21· · · ·A· ·I've seen --
22· · · ·Q· ·-- "is any of this true?"
23· · · ·A· ·-- stuff like that in previous lawsuits. A
24· lot of it's just lies so I don't play into it.
15:34 25· · · ·Q· ·Did you ask anybody, either Mr. Gigliotti,

(714) 838-9119 YVer1f
465
·1· Mr. Mele, Mike Dalton, Steve Dalton, Silvers, say,

·2· "Look, is any of this stuff true?"
·3· · · · · ·MR. EDGERTON:· Okay.· Hold it.
·4· · · · · ·Objection.· To the extent you're saying the
15:34 ·5· word "anybody," that could include legal counsel,
·6· so --
·7· · · · · ·MR. KLEIN:· I'll withdraw it.
·8· · · · · ·MR. EDGERTON:· Yes, you see the problem.
·9· BY MR. KLEIN:
15:34 10· · · ·Q· ·Did you ask any of the following people
11· whether what -- whether any of these new allegations
12· were true, and on that list would be Steve Dalton,
13· Mike Dalton, Silvers, Mele, Gigliotti?
14· · · ·A· ·No.
15:35 15· · · ·Q· ·When you talked to Steve Dalton, was he
16· angry?
17· · · ·A· ·No.
18· · · · · ·(Exhibit 45 was marked for identification.)
19· BY MR. KLEIN:
15:35 20· · · ·Q· ·Let's take a look at Exhibit 45.· Have you
21· ever seen this before?
22· · · ·A· ·Not to my recollection.
23· · · ·Q· ·Did you have any role in creating websites
24· like AARP Guide or AARP Hub?
15:36 25· · · ·A· ·Yes.

(714) 838-9119 YVer1f
465
Defenses Have No Merit

• Broker Protocol is irrelevant
• As Judge Lorenz said, FSC involvement
irrelevant
• As Judge Lorenz said, Galante is not applicable
• Claims of illegality have no merit
465
SEC and FINRA Exonerate TRG

Case 3:15-cv-00057-L-AGS Document UNITED
404-7 STATES
Filed 04/25/19 PageID.34180 Page 284 of
465
SECUR I TIES AND EXCHANGE COMMISSION
LOS ANGELES REGIONAL OFFICE
9TH FLOOR
444 S. FLOWER STREET
LOS ANGELES, CALIFORNIA 90071
October 15, 2018
VIA U.S. MAIL
Gerald A. Klein, Esq.

Partner
Klein & Wilson
4770 Von Kannan Ave.
Newport Beach, CA 92660
Re: In the Matter of The Retirement Group, LLC (LA-4853)
Dear Mr. Klein,
----- --· We
- - have
- ---concluded our investigation as to The Retirement Group in Matter Number LA-
---· ----o-·-- --- -·- -- ---- -------------- ----·r ---- ·------
Based on the information this date, we do not intend to recommend any enforcement action
by the Commission against The Retirement Group, LLC related to this matter.
. ... . . ,...
been exbnerate<l ormai no action may u16'mate1y result trom me statf-sinvesugafion." (tne·tull.
text of Release No. 5310 can be found at: http://www.sec.gov/divisions/enforce/wellls-re1ease.pdf.,
Enclosure:
Securities Act Release No. 5310
465
May 15, 2018
John A Jastremski
6315 Via Dos Valifl!'I
Rancho Sante Fe, CA 92067
Re. Cause Examrnahon of FSC Secuntres Corporat1011

Exami11ation Number 20170551082
Dear Mr Jastremsl<i:
Thrs •• to ,nfonn you inat F INRA haa compreteo • rev- ,.,,0 Y<N<
CorJ)O(al,on
e<:1-'" rsc ~
Based on our inquiry, we have determined to close our file pertaining to th\smatter. ,n,s
determination is based on the facts known to us at this time. ··
r-•-- ·· ~·
1r1t:r11utn u, o ,,,o,1,ug1 .... ..,..,______ ,
evideriee m any of these forums prov,ded that in the event a party otner ltran a member or
associated person makes representations 111 a procee<:t,ng inconsistent wrlh \his letter. the
member or 8550Clated person may introduce this letter, in uned,ted form , but only for l'1e purpose
of cteatmg a complete factual record
If you have any questions please contact the undef'Srgned at (504) 412-2469
Sincerely,
fsJ D Ne,von Morantez
o. Neivon Morantez
Exam,natron Manager
mh
Ms Don J Hammond, c111ef compliance Officer
cc
FSC securities corporation
2300 Windy Ridge PkWY, Suite 1'\00
Atlanta, GA 30339
465
The Conspiracy Was To Steal TRG’s

Trade Secrets, Leave No Evidence
Behind, Report TRG To Regulatory
Bodies And Leave TRG In Ashes
465
Dalton Tells Everyone To Leave No

Footprints In The Sand
465
Michael Dalton
June 14, 2017
Michael Dalton
·1· was and I told you I didn'tJune
know.
14, 2017
·2· · · Q.· ·Yeah.
·3· · · A.· ·And I'm standing by that.· I don't know who
·4· that attorney was.
·5· · · Q.· ·But before the second sentence about the
·6· attorneys you said we told them that.· Was that you?
·7· · · A.· ·Oh, yeah.· That would have been all of us,
·8· again, as a group discussing, you know, the potential of
·9· significant legal fees.
10· · · Q.· ·Right.· You were basically certain that John
11· was going to file a lawsuit if they left?
12· · · A.· ·To protect his property he would, yes.
13· · · Q.· ·Move to strike everything before yes.
14· · · · · ·And then the second sentence, "Our attorneys
15· confirmed these dangers to all of us and told us to be
16· careful about what we put in writing as our documents
17· could be used against us in future litigation."
18· · · · · ·So, again, this is the same attorney that you
19· referenced earlier that you don't know who it is?
20· · · A.· ·Right.· Everything was passed down to me
21· because I wasn't on those calls, so I was -- I was
22· informed just like they were informed and I was told
23· they were informed to not put anything down in writing.
24· · · Q.· ·And who told you that the attorneys had said
25· that?
U.S. LEGAL SUPPORT
(619) 573-4883

(619) 573-4883 YVer1f
465
Michael Dalton
June 14, 2017
Michael Dalton
·1· · · A.· ·It would have beenJune
Lloyd
14, and
2017Steve, not
·2· supposed to communicate through writing.
·3· · · · · ·MR. KLEIN:· I'm sorry, Lloyd and who?
·4· · · · · ·THE WITNESS:· Steve Dalton.
·5· · · Q.· ·(By Mr. Reynolds)· Does that strike you as
·6· unusual legal advice?
·7· · · · · ·MR. KLEIN:· Objection.· Calls for an opinion.
·8· · · Calls for speculation.· Vague.
·9· · · · · ·MR. ECKARD:· Also assumes facts not in
10· · · evidence.
11· · · · · ·THE WITNESS:· I would just say that it's in
12· · · preparation.· I wouldn't say it's unusual.· I think
13· · · if you know you're going to have a lawsuit against
14· · · you for doing something, in my opinion that I knew
15· · · was wrong at the time, you're going to expect to get
16· · · hit with legal, so that's my best answer for that,
17· · · is it's not -- I don't think it was any more unusual
18· · · than any other of the same situation.
19· · · Q.· ·(By Mr. Reynolds)· Now, it says, for this
20· reason, we agreed to communicate in conference calls
21· rather than e-mail.
22· · · · · ·However, there were many e-mails that were sent
23· throughout this period, weren't there?
24· · · A.· ·There were, throughout the -- yes.
25· · · Q.· ·Okay.

U.S. LEGAL SUPPORT
(619) 573-4883

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34186 Page 290 of
June
465 14, 2017
·1· one to another or not.
·2· · · · · ·MR. REYNOLDS:· Okay.· That's all I have on 65.
·3· · · Anyone else?
·4· · · · · ·MR. KLEIN:· Yes.
·5· · · · · · · · · · · · ·EXAMINATION
·6· BY MR. KLEIN:
·7· · · Q.· ·During these conference calls, were there
·8· discussions about destroying evidence?
·9· · · A.· ·I'm sorry, you -- I couldn't hear you.· Did you
10· ask me were there discussions?
11· · · Q.· ·Let me rephrase because if it didn't come
12· through to you it didn't come through to the video.
13· · · · · ·During these discussions, these conference
14· calls you had, were there discussions about destroying
15· evidence?
16· · · A.· ·Yes.
17· · · Q.· ·Can you describe those discussions?
18· · · A.· ·In general I can.· If I recall, things were
19· being said like, hey, listen, you know, we can't have
20· any trace of that.· There can't be any -- you know, we
21· can't leave any steps in the sand was one -- or any
22· footprints in the sand, rather, excuse me.· Things like
23· that.· You know, no popcorn trail.· Somebody made a
24· reference to a Brady Bunch episode where Peter got lost
25· and threw popcorn on the ground so somebody could find

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34187 Page 291 of
June
465 14, 2017
·1· -- or something like that.
·2· · · Q.· ·And when these discussions were happening about
·3· not leaving footprints in the sand or a popcorn trail,
·4· what led you to believe that these were discussions
·5· about not leaving evidence behind?
·6· · · A.· ·Well, again, based on what I think was the
·7· conversation at the time, it was directly related to
·8· what we were discussing, which was moving data.· That's
·9· my best guesstimate on that.· I apologize for being
10· vague.
11· · · Q.· ·Did -- on any of these calls that issues came
12· up about not leaving footprints in the sand, do you
13· remember if Mele, Keating and/or Gigliotti were on the
14· calls?
15· · · A.· ·I don't remember if all of them were or one of
16· them were or -- I can't really recall.
17· · · Q.· ·Were there any other discussions that you can
18· recall about trying to avoid leaving a trail that might
19· be picked up in litigation?
20· · · A.· ·Well, we had a few general discussions about
21· that in terms of the -- in terms of the Ardent group,
22· that would be Silvers, Davenport, Goldstein, Steve
23· Dalton and myself.· That was the general consensus is
24· that we couldn't leave anything there to be tracked.
25· · · Q.· ·What was the concern?

(619) 573-4883 YVer1f
465
Davenport Confirms Dalton’s Plan Is

Not To Leave Evidence Behind
465
John Davenport
June 16, 2017
·1· · · · lines of the risk assessment we discussed?
·2· · · · · · ·A.· · Correct.
·3· · · · · · ·Q.· · You might get sued and if you get
·4· · · · sued you might lose, possibly?
·5· · · · · · ·A.· · Correct.
·6· · · · · · ·Q.· · And even if you don't lose you
·7· · · · might have to spend some money defending
·8· · · · yourselves?
·9· · · · · · ·A.· · Correct.
10· · · · · · ·Q.· · Then you were told, "We were told
11· · · · to be careful what we put in writing as we
12· · · · may be subpoenaed in the future."
13· · · · · · · · · ·Who told you that?
14· · · · · · ·A.· · Steven Dalton.
15· · · · · · ·Q.· · You said his lawyer said that?
16· · · · · · ·A.· · No, I didn't say that his lawyers
17· · · · said that.· I said Steve Dalton told us
18· · · · let's not put things in writing, let's make
19· · · · sure we stick strictly to the conference
20· · · · calls.
21· · · · · · ·Q.· · And in your experience is that
22· · · · unusual?
23· · · · · · ·A.· · I don't have experience in that.
24· · · · · · · · · ·MR. KLEIN:· Vague, calls for an
25· · · · · · ·opinion.

(619) 573-4883 YVer1f
Davenport 120:10-20
465
Davenport Says While He Did Not See

Evidence Destroyed, He Heard The
Conspirators Talking About It
John Filed
04/25/19 PageID.34191 Page 295 of
June
465 16, 2017
·1· · · · · · ·A.· · No.
·2· · · · · · · · · ·MR. HALL:· Thank you.
·3· · · · BY MR. KLEIN:
·4· · · · · · ·Q.· · I have a couple of questions.
·5· · · · You are a lawyer, right?
·6· · · · · · ·A.· · Yes.
·7· · · · · · ·Q.· · And when Mr. Hall was asking you
·8· · · · about "personal knowledge" you mean you
·9· · · · didn't actually see somebody destroy
10· · · · evidence, is that right?
11· · · · · · ·A.· · Yes.
12· · · · · · ·Q.· · But is it accurate to say that
13· · · · you heard them talk about it on a fairly
14· · · · frequent basis that they would destroy
15· · · · evidence?
16· · · · · · · · · ·MR. EDGERTON:· Objection,
17· · · · · · ·misstates testimony.
18· · · · · · · · · ·MR. HALL:· Join.
19· · · · · · · · · ·MR. ECKARD:· You can answer.
20· · · · · · ·A.· · Yes.
21· · · · · · · · · ·MR. KLEIN:· I guess that is that.
22· · · · · · ·Never mind.
24· · · · · · ·Q.· · I think I need one follow up.
25· · · · Just to clarify, paragraph twenty-two says

(619) 573-4883 YVer1f
John Filed
04/25/19 PageID.34192 Page 296 of
June
465 16, 2017
·1· · · · they were discussing how they needed to
·2· · · · destroy evidence, not how they had destroyed
·3· · · · evidence.· Is it true that the conversation
·4· · · · you heard was just about potentially
·5· · · · destroying evidence as opposed to saying I
·6· · · · actually destroyed evidence?
·7· · · · · · ·A.· · I think I heard both.· I don't
·8· · · · know if it was on the same conference call,
·9· · · · but the fact is it was not only we're going
10· · · · to, but that we have.
12· · · · · · ·Q.· · Did you hear any of my three
13· · · · clients say that they in fact had to destroy
15· · · · · · ·A.· · I don't recall if I heard your
16· · · · clients say that specifically.
17· · · · · · · · · ·MR. REYNOLDS:· That's all I have.
19· · · · · · ·Q.· · Aside from Mr. Silvers, did you
20· · · · ever hear anybody say they destroyed
22· · · · · · ·A.· · Steve.
23· · · · · · ·Q.· · And when did that phone call take
24· · · · place?
25· · · · · · ·A.· · I can't recall at this time.

(619) 573-4883 YVer1f
John Filed
04/25/19 PageID.34193 Page 297 of
June
465 16, 2017
·1· · · · · · ·Q.· · So how do you know that you heard
·2· · · · it?
·3· · · · · · ·A.· · I remember hearing it on the
·4· · · · call.
·5· · · · · · ·Q.· · What year?
·6· · · · · · ·A.· · It was probably 2015, 2016.
·7· · · · · · ·Q.· · Who was on the call at that time?
·8· · · · · · ·A.· · I don't recall at this time.
·9· · · · · · ·Q.· · Do you recall that there were
10· · · · other people on the same phone call when he
11· · · · allegedly made that statement?
12· · · · · · ·A.· · Yes, I do.
13· · · · · · ·Q.· · Was it the usual group?
14· · · · · · ·A.· · I don't recall at this time.
15· · · · · · ·Q.· · So was it -- do you have -- who
16· · · · was typically on those phone calls?
17· · · · · · ·A.· · Typically it was Michael Dalton,
18· · · · John Davenport, Steve Dalton and Lloyd
19· · · · Silvers.
20· · · · · · ·Q.· · Do you know that Mike Dalton
21· · · · testified just the other day in sunny Tampa?
22· · · · Do you recall whether or not he testified
23· · · · that he heard this from Steve Dalton?
24· · · · · · ·A.· · I don't know.
25· · · · · · ·Q.· · Do you recall whether anybody

(619) 573-4883 YVer1f
465
Briganti Says Keating Wants Nothing In

Email
465
·1· ·happen on July 28th; is that right?

·2· · · A.· That's -- that's what it says here, correct.
·3· · · Q.· Let's take a look at 895.
·4· · · · · · · · · · · · · · (Whereupon, Exhibit 895 was
·5· · · · · · · · · · · · · · ·marked for identification.)
·6· · · · · · · ·THE WITNESS:· I have 895.
·7· ·BY MR. KLEIN:
·8· · · Q.· And do you remember Jeremy Keating expressing
·9· ·concerns about putting things in emails?
10· · · A.· I believe so, yes.
11· · · Q.· Did he ever tell you why?
12· · · A.· He did.· He had specifically mentioned that, um,
13· ·his current branch manager, John Jastremski was at times
14· ·a difficult individual and that he had witnessed times
15· ·in which others had attempted to leave or left and that
16· ·he would, you know, basically try to ruin 'em.
17· · · · · And he said, you know, we want out for various
18· ·reasons and -- and we want to get to an independent
19· ·broker-dealer in a place that we cannot be around a
20· ·tyrant.· Somebody who would pull credit randomly, who
21· ·would randomly, um, brag around the office about how he
22· ·was going to financially ruin other advisors who left
23· ·and almost make it a bragging game, if you will, take a
24· ·sense of pride.
25· · · · · And so I would say that the advisor -- you know,
Briganti 53:8-10
465
Silvers Also Admits Plan Is Not To

Leave A Paper Trail
465
·1· don't get misconstrued at all.

·2· · · ·Q· ·Did -- 'cause they -- they never get
·3· misconstrued in telephone communications; is that
·4· your testimony?
13:12 ·5· · · ·A· ·They do.· There's just more time to --
·6· there's more of an opportunity to correct any
·7· assumptions or -- you know.
·8· · · ·Q· ·You communicate on texts, though, don't you?
·9· · · ·A· ·I do, yes.
13:13 10· · · ·Q· ·Even though there's risk of misconstruing
11· what's being said; right?
12· · · ·A· ·Yes.· Yeah.
13· · · ·Q· ·And do you remember having discussions with
14· Steve Dalton about leaving as little a paper trail as
13:13 15· you could?
16· · · ·A· ·I don't necessarily know that we had a
17· specific conversation about it, but I may have shared
18· my -- my insights with him.
19· · · ·Q· ·In your discussions with Steve Dalton, Mele,
13:13 20· Gigliotti, Keating, is it fair to say all of you
21· thought that John Jastremski was a psychopath?
22· · · · · ·MR. HALL:· Well, objection.· Calls for
23· speculation.
24· · · · · ·MR. KLEIN:· Let me rephrase.
25· ///

(714) 838-9119 YVer1f
465
·1· BY MR. KLEIN:

·2· · · ·Q· ·In your discussions with -- with Dalton,
·3· Jeremy Keating, Gigliotti and Mele, did you discuss
·4· the fact that it was very likely John Jastremski was
13:14 ·5· going to sue all of you?
·6· · · ·A· ·Given the current situation, he's currently
·7· involved in some 10 or 11 lawsuits with multiple
·8· advisors, so we were very clear -- and many of us
·9· worked during the Monarch situation and when Scott
13:14 10· McKay left right around that same time, so we saw
11· very much how litigious John was, and I actually --
12· when I left, I held my breath for about six months.
13· So, yes, if anything, even if you leave on good
14· terms, there's a good chance that John Jastremski
13:14 15· will sue you for something.
16· · · ·Q· ·So you knew John Jastremski was likely going
17· to sue you when Mele, Gigliotti and Keating left;
18· right?
19· · · ·A· ·Yeah, right or wrong, I knew that there was
13:14 20· a -- there was a definite risk of that, yes.
21· · · ·Q· ·And you had discussions about making sure
22· you didn't leave a paper trail; correct?
23· · · ·A· ·It's not about not leaving a paper trail.
24· It was about, you know, having discussions on the
13:15 25· phone so that nothing gets misconstrued --

(714) 838-9119 YVer1f
465
·1· · · ·Q· ·So --

·2· · · ·A· ·-- in any form or way.
·3· · · ·Q· ·So there was no writing left behind;
·4· correct?
13:15 ·5· · · ·A· ·You've shown me --
·6· · · · · ·MR. HALL:· Objection.
·7· · · · · ·THE WITNESS:· -- a lot of writings.
·8· · · · · ·MR. HALL:· Argumentative.
·9· BY MR. KLEIN:
13:15 10· · · ·Q· ·Do you remember Mr. Mele expressing concerns
11· that he didn't want e-mails to be subpoenaed down the
12· road?
13· · · ·A· ·To the best of my knowledge, I mean, that --
14· I don't think that was the case.
13:15 15· · · ·Q· ·Now, let's take a look at Exhibit -- I think
16· this is 257.
17· · · ·A· ·That's the same one.
18· · · ·Q· ·Oh.· No, it isn't.· Let me have that back,
19· please.· Yes, that is --
13:15 20· · · ·A· ·Okay.
21· · · ·Q· ·But I'm on the right one now.
22· · · ·A· ·Okay.
23· · · ·Q· ·Now I won't ask you questions that have
24· nothing to do with your document.
13:15 25· · · ·A· ·Now we're all literally on the same page;

(714) 838-9119 YVer1f
465
Mele Admits The Conspirators Are

Building A Secret Google Drive
(Exhibit 256)
465
I
17
Chat#
1
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465
The Keating Group Tells Mike They Are

Using Secret False Email Addresses To
Communicate
threejabrones and cara.ann.morrison

Michael
04/25/19 PageID.34203 Page 307 of
June
465 14, 2017
·1· I've downloaded some new stuff into -- you know, into
·2· Zoho.· Those are the types of words that were used on
·3· the calls.· I can't be any more specific than that.
·4· · · Q.· ·But you don't have any idea what was actually
·5· being downloaded into Zoho or Google Drive, correct?
·6· · · A.· ·No.· The data.· Whatever the data meant.
·7· · · Q.· ·Whatever the data meant?
·8· · · A.· ·Correct.
·9· · · Q.· ·Okay.· And you don't know what that meant?
10· · · A.· ·Correct.
11· · · Q.· ·And why do you say the information still
12· resides there to the best of my knowledge?
13· · · A.· ·Because to the best of my knowledge I never --
14· · · Q.· ·No one ever told you it's no longer on Zoho?
15· · · A.· ·No one's ever told me any different.
16· · · Q.· ·Okay.· Fair enough.
17· · · · · ·MR. REYNOLDS:· Anyone else have anything on
18· · · that?
19· · · · · ·MS. SACHDEVA:· No.
20· · · · · ·MR. KLEIN:· Nothing.
21· · · · · ·MR. HALL:· No.
22· · · Q.· ·(By Mr. Reynolds)· 63, "Keating, Gigliotti,
23· Mele, Dalton and Silvers created fictitious e-mail
24· addresses with names of people with opposite genders to
25· surreptitiously store and transmit passwords for our

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34204 Page 308 of
June
465 14, 2017
·1· databases and trade secret data that we took from TRG."
·2· · · · · ·What is the basis of your knowledge for that
·3· statement?
·4· · · A.· ·Threegabrones e-mail would be one instance of
·5· that.
·6· · · Q.· ·What's the threegabrones e-mail?
·7· · · A.· ·I'm assuming that's the e-mail that -- well, I
·8· shouldn't say I'm assuming.· That's the e-mail that
·9· Keating, Gigliotti and Mele used to communicate that
10· wasn't tracked.
11· · · Q.· ·So while they were at TRG they used that
12· e-mail?
13· · · A.· ·I don't know how long that had been going on.
14· · · Q.· ·How do you know that?· Were you included on
15· those e-mails?
16· · · A.· ·Calls.· We discussed that.· Lloyd's told me
17· that before.
18· · · Q.· ·So you were never a to or from or cc or bcc a
19· threegabrones e-mail?
20· · · A.· ·Without my notes I can't really be positive in
21· that answer.· Speculating, I'll say no.
22· · · Q.· ·So you just heard on calls that e-mail used?
23· · · A.· ·Yeah.· I heard discussion of that e-mail used.
24· · · Q.· ·Did you have any understanding of what was
25· communicated through that e-mail account?

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34205 Page 309 of
June
465 14, 2017
·1· · · Q.· ·So do you know what data was in any e-mails
·2· that went through that account?
·3· · · A.· ·Again, not specifically.
·4· · · Q.· ·Okay.· Any other e-mail accounts that -- that
·5· you were referring to other than threegabrones?
·6· · · A.· ·Off the top of my head, I can't recall.· I'm
·7· sure there are.
·8· · · Q.· ·Names of people with the opposite gender.· Is
·9· there a name you can remember?
10· · · A.· ·Not at this time, no.
11· · · Q.· ·Do you remember whose e-mail account that was?
12· · · A.· ·I can't.· I deal with thousands of e-mails.
13· · · Q.· ·You and me both.
14· · · A.· ·I know.
15· · · Q.· ·All of us.
16· · · · · ·MR. ECKARD:· I'll concur.
17· · · Q.· ·(By Mr. Reynolds)· At least I'm not sending
18· many today, or at least not yet.
19· · · · · ·Okay.· 64.
20· · · · · ·MR. KLEIN:· Hold on.· 63.
21· · · · · ·MR. REYNOLDS:· Yes.· Go ahead.
22· · · · · · · · · · · · ·EXAMINATION
23· BY MR. KLEIN:
24· · · Q.· ·Did you ever hear of an e-mail account by the
25· name of Cara Ann Morrison?

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34206 Page 310 of
June
465 14, 2017
·1· · · A.· ·Actually, I have.
·2· · · Q.· ·Was that one of the fictitious accounts you
·3· heard about?
·4· · · A.· ·I didn't realize it -- it was fictitious, but
·5· I've heard of that account before.
·6· · · Q.· ·Nothing further.
·7· · · · · · · · · · · · ·EXAMINATION
·9· · · Q.· ·Do you know whose account Cara Ann Morrison
10· was?
11· · · A.· ·I don't.· It's been mentioned.
12· · · Q.· ·And how did you hear of it?
13· · · A.· ·It was on a call when we were talking about
14· e-mails and information being sent.
15· · · Q.· ·Okay.· 64.· "This is not the type of
16· information anyone can get from public sources and it
17· takes a great deal of time, investment, and work to
18· obtain such information."· What sort of information are
19· you talking about there, sir?
20· · · A.· ·Well, I can't -- I can't be as specific as
21· you'd probably like me to be on this.
22· · · Q.· ·You're probably right.
23· · · A.· ·But this is -- it's client information of years
24· of service that they've done with companies, when
25· they're about to retire, when they're about to take a

(619) 573-4883 YVer1f
465
Mele Stumbles About Trying To Explain

The False Emails
465
·1· whether it was legal questions for lawyers, whether

·2· we were in a -- we -- this was before we had, I
·3· believe, decided on a broker-dealer, so keep track of
·4· broker-dealers we're talking with.· It never amounted
17:31 ·5· to any of that, but that was the idea behind it.
·6· · · ·Q· ·Why not just use your e-mail address, Rich's
·7· e-mail address, Keating's e-mail address?
·8· · · ·A· ·I thought it would be a better way to -- to
·9· go.
17:31 10· · · ·Q· ·Because it would be harder to find?
11· · · · · ·MR. HALL:· Objection.
12· BY MR. KLEIN:
13· · · ·Q· ·Right?
14· · · · · ·MR. HALL:· Argumentative.
17:31 15· · · · · ·MR. REYNOLDS:· Yeah, that's argumentative.
16· · · · · ·THE WITNESS:· I don't --
17· BY MR. KLEIN:
18· · · ·Q· ·Did you do it because you thought it would
19· be --
17:31 20· · · · · ·MR. REYNOLDS:· I guess that's why he
21· disclosed it, huh?
22· BY MR. KLEIN:
23· · · ·Q· ·Did you do this because you thought it would
24· be harder to find?
17:31 25· · · · · ·MR. HALL:· Objection.· Argumentative.

(714) 838-9119 YVer1f
465
·1· · · · · ·THE WITNESS:· We -- we did it so it wasn't

·2· on our personal e-mails.· We thought it would --
·3· BY MR. KLEIN:
·4· · · ·Q· ·Why was there a problem with having it on
17:31 ·5· your personal e-mails?
·6· · · ·A· ·We just didn't want it there.
·7· · · ·Q· ·Why not?
·8· · · ·A· ·I -- I mean, we just didn't feel comfortable
·9· having it there.
17:31 10· · · ·Q· ·Why not?· What were they saying -- did the
11· other guys say why they didn't feel comfortable
12· having this kind of information on personal e-mails?
13· · · ·A· ·Well, we're -- we're talking about leaving,
14· so we just didn't know -- if something happened, if
17:32 15· an e-mail was -- was seen or found that could let
16· John know that we're leaving earlier, so we did it
17· away from our e-mail addresses.
18· · · ·Q· ·How would John Jastremski get access to your
19· personal e-mails?
17:32 20· · · ·A· ·As a TRG employee, you're quite paranoid,
21· and at one point that was my only laptop that I
22· logged in via my personal gmail, my personal -- to my
23· personal two gmails, so I was under the impression
24· when I was in that office logged in, that most
17:32 25· everything I was doing was being tracked.

(714) 838-9119 YVer1f
465
Silvers Admits Purpose Of The False

Emails Was To Hide What They Were
Doing
465
·1· insane.· I just laughed and smiled on inside knowing

·2· I'm out."
·3· · · · · ·Who did you think he was referencing?
·4· · · ·A· ·Oh, I'd be speculating as to who he was
13:18 ·5· referencing.
·6· · · ·Q· ·Let's go -- drop down to Lloyd Silvers where
·7· it references cara.ann.morrison@gmail.com.
·8· · · · · ·Why did you put this into your text?
·9· · · ·A· ·Well, I assume that's who I was sharing this
13:19 10· with, then.
11· · · ·Q· ·With Cara Ann Morrison?
12· · · ·A· ·Well, this is -- message is between me and
13· Alex; correct?
14· · · ·Q· ·Right.· Why did --
13:19 15· · · ·A· ·Okay.
16· · · ·Q· ·-- you write that e-mail address in there?
17· · · ·A· ·Again, I can't recall what -- what the
18· purpose of -- of it was.
19· · · ·Q· ·Well, why don't we drop down to the
13:19 20· bottom --
21· · · ·A· ·Yeah.
22· · · ·Q· ·-- where you write, "You can store stuff
23· there like questions."
24· · · · · ·You're referring to that e-mail address;
13:19 25· right?

(714) 838-9119 YVer1f
465
·1· · · ·A· ·Yeah.· He may have had a place where he

·2· wanted to jot down notes, questions for Steve or what
·3· have you that he could reference.
·4· · · ·Q· ·That wouldn't be detected in future
13:19 ·5· litigation; correct?
·6· · · · · ·MR. HALL:· Objection.· Argumentative.
·7· · · · · ·THE WITNESS:· I wouldn't say for future --
·8· more of so John wasn't peeking around in his e-mail
·9· address like he tends to do.
13:20 10· BY MR. KLEIN:
11· · · ·Q· ·And you created the Cara Ann Morrison e-mail
12· address so that you and Mele, and potentially others,
13· could communicate without Jastremski finding out?
14· · · · · ·MR. HALL:· Objection.· Argumentative.
13:20 15· · · · · ·THE WITNESS:· Well, to keep confidentiality
16· amongst themselves, yeah.
17· BY MR. KLEIN:
18· · · ·Q· ·So that Jastremski couldn't see it; correct?
19· · · ·A· ·Working in that environment, you realize
13:20 20· that you have no privacy and that you have to find
21· avenues to have some privacy for conversation.
22· · · · · ·MR. KLEIN:· I'm going to move to strike the
23· answer as nonresponsive.
24· · · · · ·Could you read the question back, please?
13:20 25· · · · · ·(Whereupon the record was read as follows:

(714) 838-9119 YVer1f
465
Dalton Tells Others Not To Use SAI

Email Address
Case 3:15-cv-00057-L-AGS Document 404-7 Filed 04/25/19 PageID.34214
CONFtOENTIAL EXHIBIT Page 318 of
From: From: lloyd.silvers@gmail.com Lloyd J. Slivers
Timestamp: 6/23/2015 2:24:23 AM{UTC+0)
Source App: iMessage: lloyd, silvers@gmail.com
465 1 sq I
Body: Oqtt,n 4-211 . ,1
He says it's implied in any case
From: From: lloyd.silvers@gmail.com Lloyd J, Slivers
1imestamp: 6/23/2015 2:25:12 AM(UTC+0)
Source App: iMessage: lloyd.sllvers@gmail.com
Body:
Remind me to speak with you about Del Mar
----------------
1imestamp: 6/23/2015 2:29:02 AM(UTC+0)
SOurce App: iMessage: lloyd.silvers@gmail.com
BOdy:
8:30 am. I figured the claim at the bottoms did it. I'll remind you.
Timestamp: 6/23/2015 2:35: 17 AM(UTC+0)
Source App: iMessage: lloyd.silvers@gmail.rom
Body:
I will call you as soon as r get in to get this out of the way
------------------
Timestamp: 6/23/2015 2:40:43 AM(UTC+0)
Source App: iMessage: lloyd. silvers@gmail.com
Body:
K
From: From: lloyd.silvers@gmail.com Lloyd J, Slivers
1imestamp: 6/23/2015 3:03:00 PM{UTC+0)
Source App: iMessage: lloyd, silvers@gmail.com
Attachments:
#1: chats\iMessage lloyd,silvers@gmail.com\attachments94\1iffany Hill,vd
Body :
-------------
From: From : lloyd.silvers@gmafl.com Lloyd J. Slivers
1imestamp: 6/23/2015 3:08:37 PM(UTC+0)
Attachments:
- - - - - - -.£.1..:..r~\~.o,;iJ.l.cu..£..~m~~"'ltt.~Q:l,C'\Q,tr.0f1\0,.,... ._.,...,,,...,.,,.,._.,,,,.. ,,rF

Body:
Good. Fire them over. Non SA email
759
From: Stev, PA1t.9D. 465
Tq: )QHN PAYfNFPBt
sul,Jec:t: RE: John O,i°venp_
ort (WealthMax llmellrie).
O_ail•: . Moltday, •l\pfil 13, 20-is 7 :18;29 ·AM
~~~hnietlb: i,m.9#)0Lpna.
John,
In .the ftHlJre, ALWAYS bllndcapy eveJ. one, T_here:-c1re pec,ple on-that 11~.t, ·Tina,. for ex~mple, that
should not have contact info on anyone. SecondiyJ· some of these :people-are NOT Wealth Max
.candidates .- Mira cl~, for exampl~..-Further, Jan arid Jeremy ~re :both .elther-·JN liti&atjon, or on the
c;1,1sp c;,f,st_ This ~,·nail fs discoverabl.e. Please e~n.-fl (Hrect lrislead -pf- 1 c◊nlpany :biasts1 •
Reg~rds,
Steve- Dalton
Mat,a~in~ Partr\er,_.Oaltofl Strategic
Gentleman:
A5 1discussed In my last email to you, we should have the WealthMax book/binder-ready by month's
end. In the me{lntimf, for those of you who have expre$Sed an intere-st in moving forward with a
WealihMax campaign, I have atiached th~ WealthMax.limeline spreadsheet for use In delermin!nc
the dates for your first campa)gn. TypicaOy, a Wealtj,Max campaign consists of 4 dinners of
anywhere from 8 to 10 couples over two weeks. These couples typically have an average net worth
of $4,000,000 or more. We like to host U1e dinners on Tuesday and Thursday of consecutive weeks.
Yo~ use the spreadsheet by entering the date of the first dinner aod then the spreadsheet will
automatically update and show you the torget dates for all the stops leading up to your first dinner•.
Les ;ind I will follow up sometime later this week with a call t~ Jan fvlohamcd, Jeremy Keating,
Rlcha.rd Giglotti, Don Hartmann, and Alexamdcr Me.le to hopefully schedule your first campaign and
to begin lookln8 at t he demographics in your respective areas. An·t of those I have not mentioned
44 -1
465
Dalton’s Plan Is To Stonewall Discovery

To Allow Time For His 25 Point Plan To
Kill TRG
465
Michael Dalton
June 14, 2017
·1· come with a 25 point campaign?
·2· · · A.· ·Yes, sir.
·3· · · Q.· ·Was that campaign to conduct a two front war
·4· against TRG by taking representatives and reducing the
·5· financial strength of TRG while simultaneously launching
·6· a regulatory proceeding against them?
·7· · · A.· ·That's what was discussed, yes.
·8· · · · · ·MR. KLEIN:· I'm done.
·9· · · · · · · · · · · · ·EXAMINATION
11· · · Q.· ·Okay.· Moving on to 42.· "During conference
12· calls, I heard attorneys for Keating and/or the Ardent
13· people advise their clients to delay producing documents
14· and stall the litigation for as long as possible."· What
15· -- was that said?
16· · · A.· ·Yes.· I do remember a call on that.· I don't
17· recall who said that or what counsel that was that said
18· that.· It was a joint conference call again.
19· · · Q.· ·And you don't recall when that was?
20· · · A.· ·I do not.
21· · · Q.· ·Are you aware that TRG stipulated to stay
22· discovery in this action?
23· · · A.· ·To stay discovery --
24· · · · · ·MR. KLEIN:· Objection.· No foundation.
25· · · Argumentative.

(619) 573-4883 YVer1f
465
History Of Discovery Abuse (999A)

465
Date Event
September 21, 2016 TRG propounds first set of discovery requests to Ardent.
December 28, 2016 Ardent produces a grand total of 12 documents, consisting of 17 pages.
January 20, 2017 TRG propounds second set of discovery requests to Ardent.
March 24, 2017 TRG files motion to compel Ardent to produce responsive documents.
(ECF 149)
April 28, 2017 Court grants TRG's motion to compel. (ECF 156)
May 26, 2017 TRG moves for order re. contempt. (ECF 167)
July 5, 2017 New motion to compel for failure to respond to discovery. (ECF 187)
July 7, 2017 Court holds Ardent in contempt. Orders $2,000 of sanctions plus daily
sanctions of $100. (ECF 188)
July 14, 2017 Ardent production deficient and fails to comply with court order. (ECF
198-6, Exhibit 1)
July 28, 2017 Ardent alternative version of production deficient and fails to comply
with court order. (ECF 215)
August 8, 2017 Ardent ordered to pay sanctions. (ECF 207)
August 16, 2017 Court orders Ardent to pay $3,000 in sanctions, payable by September
15. (ECF 210) Ardent does not pay sanctions until November 2017.
September 27, 2017 TRG files motion to compel against Dalton for failure to respond to
discovery. (ECF 226)
October 30, 2017 Court gives Ardent last chance to pay sanctions by November 29, 2017
or risk termination. (ECF 295, Exhibit 3)
November 2017 Ardent finally pays court ordered sanctions in November 2017, five
months after being ordered to do so.
November 21, 2017 Ardent finally produces documents, but does not indicate which
documents are designated AEO. (ECF 264)
November 30, 2017 In response to motion to compel Ardent says it will provide a list of AEO
documents but does not do so. (ECF 329-1, Exhibit 3)
December 1, 2017 TRG files fourth supplemental declaration indicating Ardent's failure to
pay sanctions. (ECF 262). Ardent says sanctions paid, but check not
received until a week after alleged mailing. (ECF 266)
December 11, 2017 Court grants TRG’s September 27, 2017 motion to compel. (ECF 226)
Orders Dalton to produce documents by December 31, 2017 and pay
sanctions. The court also notes the Ardent Group still owes TRG $400 as
a result of other sanctions imposed on July 17, 2017 and orders those
sanctions to be paid by December 15, 2017. (ECF 267) Dalton fails to
produce documents until January 2, 2018, in violation of the court
order.
465
December 15, 2017 Court orders Dalton pay $5,487.50 in sanctions. (ECF 367)
September 6, 2018 TRG files application to: (1) de-designate “Attorney Eyes Only”
documents Dalton produced; and (2) compelling Dalton to produce
photographs and attachments to text messages he had not produced.
(ECF 329)
September 20, 2018 Court orders Dalton to produce attachments to text messages within
thirty (30) days and orders parties to meet and confer regarding
sanctions. (ECF 334) Dalton refuses to comply.
October 11, 2018 TRG files a fee petition after Dalton refused to respond to TRG’s meet
and confer. (ECF 336)
October 15, 2018 Ardent, Dalton, Silvers and the Keating Group state they are not ready
for evidentiary hearing scheduled months earlier. Hearing continued
almost six months.
November 1, 2018 Court orders Dalton to pay sanctions in the amount of $18,358.50 by
December 3, 2018. (ECF 350) Dalton pays sanctions at hearing to enter
terminating sanctions for his failure to pay.
December 13, 2018 TRG files request for order to show cause re: contempt why Dalton’s
answer should not be stricken. (ECF 363)
December 27, 2018 Court sets a hearing on TRG’s request for an order to show cause re:
contempt. (ECF 368)
January 24, 2019 Special master orders Dalton, Silvers and Keating Group to pay over
$18,000 in sanctions. Judge Lorenz confirms the order. (ECF 392)
January 25, 2019 Judge Schopler tentatively orders terminating sanctions for Dalton's
failure to pay sanctions, but reverses the order when sanctions paid at
the hearing. Court orders payment of additional sanctions against
Dalton.
465
Keating “Doc Disposal” (Exhibit 739)

465
EXHIBIT
J'lllll. I 1 3q
AR.D ~N1T Rt UU:MM T
- - ·f>Li\N.Nli.~G--
~ l1'ait'l 4· 21,. ~ 7
Monday Conference Call Agenda - 2:00pm EST

03109/2015
Call (765) 575 3B41 Enter Passcode: 89888062#
1. Commi ssi 011 split form

2. Callers pay
3. Bonus
4. Tina trnns.hton to caller
5. Kcatmg_ doc J1:;posal
6. Lega I sta 11 brush fire
7. rvl1sc
465
Mike Authenticates Exhibit 739

ARDENT RFIIREMENT
- - -PlANNll'oC- -

03/09/2015
l. Commission split form

2. Callers pay
3. Bonus
4. Tina transition to caller
5. Kea ting d oc disposal
6. Legal start brush fire
7. Misc
ft,-,)vt J,,,J( -/4 ,lg,,.., . , f5 -/I, "',£,,, e ✓-/4,-s '71f:/~ c-, ,rY.,.,.., /.)
,/t'.¢.v~ /nc/4/yp 50 1 Ji), L~ L> /#fl.
465
Dalton Does Not Say It Is a Fraudulent

Document When Deposed
465
05:57:23 ·1· · · · this came from, the origin, source of the document,
·2· · · · nothing.
·3· ·Q.· ·Let's look at the first item, Commission split. I'm
·4· · · · sorry, Commission split form.· What's that?
05:57:44 ·5· ·A.· ·A commission split form is a form that designates
·6· · · · in a given circumstance how you assign gross
·7· · · · commissions that come through on any particular
·8· · · · piece of business with a rep.
·9· ·Q.· ·And was that something that you did with Mele,
05:58:04 10· · · · Gigliotti, and Keating?
11· ·A.· ·Certainly not in March of 2009.· They would have
12· · · · had commission split forms done through the
13· · · · broker-dealer, Securities America, prior to or as
14· · · · they came over.
05:58:20 15· ·Q.· ·And that was my question.· I imagine this was
16· · · · something that would have been done earlier;
17· · · · correct?
18· ·A.· ·For them, yes.
19· ·Q.· ·Now, we drop down to No. 5, and it says "Keating
05:58:33 20· · · · doc disposal."· What's that?
21· ·A.· ·I seem to recall that, you know, a lot of my
22· · · · offices use a shredding service for documents that
23· · · · Securities America tells them to shred when they
24· · · · upload documents to the electronic document system.
05:58:58 25· · · · So if they had business that they submitted
THE SULLIVAN GROUP OF COURT REPORTERS 204

YVer1f
465
05:59:01 ·1· · · · electronically, via scan and upload, I believe

·2· · · · Securities America has -- I don't do that, but I
·3· · · · believe Securities America has a protocol that
·4· · · · those documents have to be shredded, because they
05:59:14 ·5· · · · are client related with client information.
·6· ·Q.· ·All right.· Do you know, as you sit here today,
·7· · · · what was discussed about Keating's doc disposal?
·8· ·A.· ·No.· I know at some point we did hire a shredding
·9· · · · service for privacy and protection of client
05:59:33 10· · · · information.
11· ·Q.· ·Now, there is item 6, "Legal start brush fire."
12· · · · What was that about?
13· ·A.· ·I don't know.· I don't know who it's in reference
14· · · · to, what it means.· I mean, there's no context for
05:59:51 15· · · · this, and again no Bates stamps.· I don't know
16· · · · where this document came from.· I have no idea.
17· · · · · · ·(Exhibit 751 introduced for identification.)
18· ·Q.· ·Let's go, let's go to 751, please.· It's a
19· · · · reference to a triple line power dialer purchase.
06:00:25 20· · · · What's that?
21· ·A.· ·I have no idea what a triple line power dialer is.
22· ·Q.· ·Have you seen this document before?
23· ·A.· ·I don't recall seeing this document.
24· ·Q.· ·Were you ever using -- strike that.· Was Ardent
06:00:57 25· · · · using a triple line dialer?

YVer1f
465
Keating Produces Nothing From

Onedrive But Gigliotti Says Everything
Is There
465
·1· "Gosh, this is so great.· I got an e-mail saying that

·2· I've never accessed this Dropbox in years and I can
·3· prove that I've never accessed it."· That's how I was
·4· thinking of it.· I didn't even think that I'd have to
15:41 ·5· report it to my lawyers.
·6· · · ·Q· ·Did you save that e-mail?
·7· · · ·A· ·I'm sure I've got it somewhere in one of my
·8· e-mails.
·9· · · ·Q· ·Why don't you produce it to your --
15:41 10· · · ·A· ·I will.
11· · · ·Q· ·-- attorney --
12· · · ·A· ·Sure.
13· · · ·Q· ·-- who will produce it to us.
14· · · ·A· ·Sure.
15:41 15· · · ·Q· ·Have you ever used OneDrive to store client
16· information?
17· · · ·A· ·OneDrive.· OneDrive.· Yeah, that's something
18· new that I think we've been using.
19· · · · · ·Microsoft OneDrive; right?
15:41 20· · · · · ·MR. REYNOLDS:· It's part of Office 365.
21· · · · · ·THE WITNESS:· That's what Jeremy has us
22· using now.· That's where everything is.
23· BY MR. KLEIN:
24· · · ·Q· ·All right.· And I -- I thought you said you
15:41 25· didn't use OneDrive.

(714) 838-9119 YVer1f
S H USTAK R EYNOLDS
& PARTNERS. PDocument
.C. 404-7 Filed 04/25/19 PageID.34229 Page 333 of
465
April 12. 20 17
Gerald A. Klein
Klein & Wilson
Jeremy Keating, et al., v. The Retirement Group, LLC, et al.
All data from Zoho is also not what was requested in TRG 's Motion to Compel. As clearly stated
on page two of TRG' s Reply to its Motion to Compel, and clearly stated during TRG' s oral arguments,
TRG was trying to obtain (1) record~ of communications with clients; and (2) client infonnation input
into Zoho by Plaintiffs. The reports produced by Plaintiffs fully encompass both of these topics. We
notified Mr. Keith of the reports we would be producing following the hearing on the Motion to
Compel, and we have not received any objections from TRG that these two reports do not fulfill the two
categories of documents sought. Plaintiffs will not be producing additional Zoho reports beyond what
was previously agreed to by the parties.
Google Drii•e a11d Dropbo.,·
You state that Mr. Keating must confirm whether he has used any of his other accounts for
Google Drive and/or Dropbox, which he already did. Mr. Keatiug's proposed response sent to you on
March 3, 2017, sta.te.s: " Mr. Ke.a ting would regularly store and share files and folders with other TRG
employees using the Google. Drive account jeremykeating@gmail.com. This is the only Google Drive
account Mr. Keating has ever used;" and "This Dropbox account was also associated with the email
address jeremykeatiug@grnail.com, ... This is the only Dropbox account Mr. Keating has used." Mr.
Keating has already clearly and sufficiently addressed this issue in his proposed response.
As to Mr. Keating moving Dropbox files, Mr. Keating has already stated in his draft re.spouse
that he found documents identified by Mr. Sevel as previously being located in his Dropbox folder and
has produced these. In his supplemental response to RFP 3, Mr. Keating stated where each file was
located when he found it. Mr. Keating cannot testify a.s to any additional specifics concerning moving
documents, as he does not have a specific recollection.
:+ncrosoft 011eDrive
You misstate in y_our lettei: that the la.st paragraph of Mr. Keatiug' s draft supplemental response_ _ __ _
disclosed his use of OneDrive previously in his response to Inte1Togato1y 4. Mr. Keating has previously
searched his OneDrive account for responsive docu111ents and no responsive docu111ents \Vere found.
sea.rcneo rus vneunve accoum ror responsive oocumenrs auo no responsive oocumems were rouno. 1vu.
Keating will indude this along with his OneDrive account usemame in his response.
- 3-
9X6610l.l
977 · 3
465
Keating Mysteriously “Finds”

Documents On The Eve Of His
Deposition
465
Case 3:15-cv-00057-L-AGS Docl!Jrnent 204-1 Filed 07/28/17 PageID.7S26 Page 27 of 82
From: Katherine Oi Donato <kdidonato@shufirm.m m>

Sent: Friday, January 6, 2017 7:24 PM
J,o: Michael leBoff; Gera:ld Klein; Jeffrey E. Fields; Sam Edgerto~ William P. Keith; dhall@dhallaw.com
(c: Pau1Reynolds; Jonah Toleno
Subject: Keatinq v. TRG - Production
Attachments: 160105-jeremykeating@g n1ail.corn-010617.zip
Counsel,
Attached is a production of a folder from Mr. Keating's Google Drive account that was inadvertently not produced
previously. This is the native version of tlhe productio n, and a Bates-st,amped version will be produced on Mo nday. The
attached files incl ude the native files from the folder along with the metadata extracted from Google Drive.
Katherine S. DiDonato, Esq.

kdidonato@slrnfirntcom
\\l'\\r~v.~huflflll.com
Direct Dial: 619.546.5527
SR SHUSTAK REYNOLDS
& PARTN:ERS, P ,C ,
I l '. l ll!I',
465
Keating Fails To Produce Documents

• Exhibit 567
• Exhibit 601
• Exhibit 703
• Exhibit 705
• Exhibit 739
• Exhibit 972
• Exhibit 987
• Exhibit 988
• Exhibit 989
465
ARDENT RETIREMENT
- - PLANNING--

12/17/2014

5. Cara.ann Morrison, threejabrones@gmail.com
6. Callers to work
8. JK RG and AM Questions
EXHIBIT
I 16 LP1
0\\11'n ~ -ze, . 17
567
465
CONFIDENTIAL
Timestamp: 6/27/2014 4:36:16 PM(UTC+0)
Body:
It's important, you available for a minute?
From: From: +16198171414 Jeremy Keating

Timestamp: 6/27/2014 5:21:04 PM(UTC+0)
Body:
Hey. I was in meeting. What up?

Timestamp: 6/27/2014 5:21:04 PM(UTC+0)
Body:
Left you a message, Steve and lawyer wanted to talk to you

Timestamp: 6/27/2014 5:23:12 PM(UTC+0)
Body:
Let me get Steve

Timestamp: 6/27/2014 5:23:12 PM(UTC+0)
Body:
y

Timestamp: 6/27/2014 5:23:12 PM(UTC+0)
Body:
As soon as possible ... do you have time?

Timestamp: 6/27/2014 5:23:12 PM(UTC+0)
Body:
When?

Timestamp: 6/27/2014 5:25:20 PM(UTC+0)
Body:
Are we doing this now?

Timestamp: 6/27/2014 5:25:20 PM(UTC+0)
Source App: iMessage: lloyd.silvers@gmail.com EXHIBIT 60 \
Body: 5i'\ ve-rs
:::.C....-------,~- ■
K WITNESS••-
DAT.,, _ __,4_-:.:.1 1-;;--- ■

C_·-:..cl
From: From: lloyd.silvers@gmail.com Lloyd J. Silvers NUMBER OF PAGEB:_b_
Timestamp: 6/27/2014 5:25:20 PM(UTC+0) LORI McCARTHY, CSR 6170, RPR
file:///C/Users/Admin/Desktop/Lloyd%20Text%20Docs/chat-32.txt[3/29/2017 11 :58:06 AM]

TRGMGK609686
(p Ol -I
465
CONFIDENTIAL
Body:
Steve is sending me the contact info

Timestamp: 6/27/2014 5:25:20 PM(UTC+0)
Attachments:
#1: chats\iMessage lloyd.si1vers@gmail.com\attachments32\Tim Feil.vcf
Body:

Timestamp: 6/27/2014 5:27:45 PM(UTC+0)
Body:
He is expecting your call

Timestamp: 6/27/2014 5:29:36 PM(UTC+0)
Body:
Ok

Timestamp: 6/27/2014 5:29:36 PM(UTC+0)
Body:
Ok give me just a couple mins. I'll just talk to him this round

Timestamp: 6/27/2014 5:29:36 PM(UTC+0)
Body:
Do you want me on with you?

Timestamp: 6/27/2014 5:38:08 PM(UTC+0)
Body:
Let me know how it goes when you are done
·---------------
Timestamp: 6/27/2014 7:12:00 PM(UTC+0)
Body:
How did it go?

Timestamp: 6/27/2014 8:45:52 PM(UTC+0)
Body:
Good. We chat later. Not on text

Timestamp: 6/27/2014 8:49:07 PM(UTC+0)
Body:
file:///C/Users/Admin/Desktop/Lloyd%20Text%20Docs/chat-32.txt[3/29/2017 11 :58:06 AM]

TRGMGK609687
465
From: JEREMY KEATING

Sent: Thursday, April 16, 2015 4:50 PM
To: LLOYD SILVERS
Subject: Tasks
I need to ask you question about tracking tasks inside of Zoho tomorrow.
Jeremy L Keating, MBA

Investment Advisor
0 (858) 217-5500
M (619) 817-1414
F (858) 345-2021
i.k ea ting ~u secu ri ti esa rn erica. corn
http://www. secu ri ti es am eri ca .com/
Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities
America Advisors, Inc. and Arbor Point Advisors, Inc.
EXHIBIT •103
WOTNEBS> $:i'I ver.::,
DATE> 4-jQ-/J
NUMBER OF PAOEl!l:-1.._
LORI MCCARTHr, C8R 6170, RPR
1
465
From: LLOYD SILVERS

Sent: Wednesday, October 28, 2015 1:23 PM
To: JEREMY KEATING
Subject: FW: Zoho CRM - Import successful -
Lloyd J. Silvers
Financial Advisor
(800) 875-1986 Office

(858) 367-5771 Direct
(858) 345-2021 Fax
Americn Advisors, Inc. Capita] Income Advisors and Securities America, Inc. are separate entities. Trading instructions
sent via e-mail may not be honored. Please contact my o!lice at (800) 875-1986 or Securities America, Inc. at (800) 747-
6111 for all buy/sell orders. Please be advised tlrnt communications regarding trades in your account are for informational
purposes only. You should continue to rely on confirmations and statements received from the custodian(s) of your assets.
The text of this communication is confidential, and use by any person who is not the intended recipient is prohibited. Any
person who receives this communication in error is requested to immediately destroy the text oflhis communication
without copying or further dissemination. Your cooperation is appreciated.
Subject: Zoho CRM - Import successful -
Import :;uccei;sful
The lemls that you tried importing from the file .csv' have been impoltcd .succcssfolly!
Illl)lort netoils
Total records in file added updated skipped

341B 3268 150 0
Please use the 'Imporl History1 page to know about the records Uiai were skipped during import and the reawns loo,
If you are h □ppy with this import, please conti1111e importing more record(s) if .iny.
l<e_c;ol'ds,
EXHIBIT 106
WITNESS: ~\ye.rs
DATEe 4:10-11
NUMBER OF PAGES:_\_ _
LOIII MCCART"Y, CSR 8170, f!PR

465 EXHIBIT
r.1111[1 -
~
ARD ENT RETIREMENT
- --P1ANNlNG-- -
I 1 3q
P=ll-tol'"\ 4-.21,.q

03/09/2015
1. Commission split form

2. Callers pay
3. Bonus
4 . Tina transition to caller
5. Keating doc disposal
6. Legal start brush fire
7. Misc
739
file:///C:/Dalton Strategic/### Discovery Text Messages/Steve and Jere...
465
4/24/15 5:43 PM
Hey Jeremy, I am headed to something with the family, and couldn't call so I asked Lloyd to give you a heads up. Dennis King wants to
have a chat with you, me and him on Monday. If possible, I'd like to find some time this weekend that you and I could discuss the
issues before we talk to Dennis so we are a "United Front". Do you have some time either Saturday or Sunday for a quick chat?
4/24/15 6:13 PM (Viewed 4/24/15 7:17 PM)
I do have time. I have some new sport registration in the morning for my son and not sure of my schedule as wife runs the show, but I'll
contact you when I find out.
4/24/15 7:17 PM
Thx. Just shoot me a text about time. I'm around all weekend.
4/25/15 11:26 AM (Viewed 4/25/15 11:28 AM)
I'll call u around 9:30 pst
4/25/15 11:28 AM
That works
4/27/15 10:09 AM
Let me know when you hit the office. We need to get this call scheduled with Dennis King. I have a conference call from 230 to 330 EST,
aside from that, I'm fairly well open.
5/2/15 1:46 PM (Viewed 5/2/15 1:49 PM)
Can we get Kevin miller on phone on Monday. I'd like to have something sent to FSC to see if the TRG letter was per approved. If not,
FSC is takin risks not properly supervising TRG. He is making unsubstantiated claims in highly unlikely approved correspondence.
What's your thoughts?
5/2/15 1:46 PM (Viewed 5/2/15 1:49 PM)
Erwin drafting a letter to take high road with clients.
5/2/15 1:47 PM (Viewed 5/2/15 1:49 PM)
He also will send letter to TRG attorneys.
5/2/15 1:50 PM
We can definitely get Kevin Miller on the phone, if he's not traveling. I'm sure he'd be interested in seeing the letter since he's been
involved in the defense of the case from their perspective.
5/2/15 1:51 PM
Can u forward to him this weekend.
5/2/15 1:51 PM
The letter? Sure
5/2/15 1:52 PM
You guys didn't use Dropbox, did you? It's going to be the first thing that Kevin asks us.
5/2/15 1:52 PM
972 - 1
10 of 21 7/9/17, 8:32 PM
file:///C:/Dalton Strategic/### Discovery Text Messages/Steve and Jere...
465
Y. The pic if the letter
5/2/15 1:53 PM
No we didn't, but Dropbox was on my work computer in the past. It was uninstalled in November o 2014
5/2/15 1:53 PM
That is a conversation
5/2/15 1:54 PM
Good. Then it's in his watch. I'll guarantee that letter want cleared by FSC
5/2/15 1:54 PM
Wasn't I meant
5/2/15 1:54 PM
It's been in the lawsuit already and I've answered on the record for each file they recovered
5/2/15 1:54 PM
Ok
5/8/15 5:43 PM
I just sent that next phase printout over to you. It's in your Gmail account. Let me know if you don't get it.
5/14/15 10:51 AM
I got everything printed at Kinko's and I'm on my way in. Be there in about five minutes
5/14/15 10:51 AM (Viewed 5/14/15 10:52 AM)
Was this meant for Lloyd?
5/14/15 10:52 AM
No, just to let you know I'm on my way in.
5/14/15 10:52 AM
I'd like to have you speak with them at some point in time throughout the day and probably rich as well
5/14/15 10:52 AM
Got it.
5/14/15 11:28 AM (Viewed 5/14/15 5:57 PM)
No prob
5/28/15 12:24 PM
972 - 2
11 of 21 7/9/17, 8:32 PM
CONFIDENTIAL
465
Body:
Do you want Steve to come out next week?
-----------------------------
Timestamp: 12/14/2014 10:13:20 PM(UTC+0)
Body:
I'd say prob not with offer right now it seems too soon
-----------------------------
Timestamp: 1/6/2015 5:38:08 PM(UTC+0)
Body:
Do you want email or hard copy of the contractor agreement?
-----------------------------
Timestamp: 1/6/2015 5:40:16 PM(UTC+0)
Body:
Email
-----------------------------
Timestamp: 1/6/2015 5:42:08 PM(UTC+0)
Body:
Got it
-----------------------------
Timestamp: 1/6/2015 6:50:40 PM(UTC+0)
Body:
It's away
-----------------------------
Timestamp: 1/9/2015 1:16:48 AM(UTC+0)
Body:
Got a key and keycard
-----------------------------
Timestamp: 1/9/2015 5:01:31 AM(UTC+0)
Body:
Does your video guy have access to green screen room?
-----------------------------
Timestamp: 1/9/2015 5:02:20 AM(UTC+0)
Body:
Try Rich first...haha
-----------------------------
Timestamp: 1/9/2015 7:19:28 AM(UTC+0)
Body:
Jim coming down tomorrow to office. Time to get him going
file:///C/Users/Admin/Desktop/Lloyd%20Text%20Docs/chat-32.txt[3/29/2017 11:58:06 AM]

TRGMGK609701 987 - 1
CONFIDENTIAL
465
-----------------------------
Timestamp: 1/9/2015 9:22:06 AM(UTC+0)
Body:
Ok
-----------------------------
Timestamp: 1/10/2015 2:20:48 AM(UTC+0)
Body:
Doorstep
-----------------------------
Timestamp: 1/10/2015 3:09:52 AM(UTC+0)
Body:
Thanks man. Will u be in office tomorrow? I think I might go. Heat is high so might bail TRG tomorrow
-----------------------------
Timestamp: 1/10/2015 4:37:20 AM(UTC+0)
Body:
I will be there tomorrow and probably Sunday, I want to do my best to make some part of this transition
easy for you guys...I have a phone set and assigned to you and a computer with software on it...let me
know when/if you are heading over and I will meet you...I got the confirm that the card you have is active
and assigned to you
-----------------------------
Timestamp: 1/10/2015 5:23:53 AM(UTC+0)
Body:
Thanks. I'm going there aroun 7:30a, but have cc with attorney at 8a. Want to work on protocol info and
get all organized. You can show me database when u get there
-----------------------------
Timestamp: 1/10/2015 5:36:49 AM(UTC+0)
Body:
You got it, I will show you what I have done so far and walk you though the quick and dirty of it
-----------------------------
Timestamp: 1/10/2015 5:37:04 AM(UTC+0)
Body:
Game face time. I'm getting suited up.
-----------------------------
Timestamp: 1/10/2015 5:39:12 AM(UTC+0)
Body:
Ok. Ty
-----------------------------
Timestamp: 1/10/2015 5:39:12 AM(UTC+0)
Body:

TRGMGK609702 988 - 1
CONFIDENTIAL
465
The office next to mine is set with a phone, you can swap my keyboard and mouse if I don't get there, the
USB connector is in my top drawer the connector for the one in there is at Nelson's
-----------------------------
Timestamp: 1/10/2015 5:40:44 AM(UTC+0)
Body:
No worries, Nelson will be there tomorrow with it and he will be loading stuff as well
-----------------------------
Timestamp: 1/10/2015 3:28:00 PM(UTC+0)
Body:
It's easiest to go in the back door with that key
-----------------------------
Timestamp: 1/10/2015 3:46:35 PM(UTC+0)
Body:
On my way
-----------------------------
Timestamp: 1/10/2015 3:46:49 PM(UTC+0)
Body:
Ok. I'm in
-----------------------------
Timestamp: 1/10/2015 3:53:36 PM(UTC+0)
Body:
Mouse not working
-----------------------------
Timestamp: 1/10/2015 3:53:36 PM(UTC+0)
Body:
Internet not working
-----------------------------
Timestamp: 1/10/2015 3:55:44 PM(UTC+0)
Body:
My USB connector is in the top drawer
-----------------------------
Timestamp: 1/10/2015 3:55:44 PM(UTC+0)
Body:
I just got on Internet
-----------------------------
Timestamp: 1/10/2015 3:55:44 PM(UTC+0)
Body:
Take my keyboard and mouse
-----------------------------

TRGMGK609703 989 - 1
465
Two Years Of Gigliotti’s Text Messages

Are Missing
lli!" any event, as Plaintiffs'
18 Case 3:15-cv-00057-L-AGS Document 404-7
counsel !i;1sFiled
465
04/25/19
in tlie PageID.34245
past explaineo to TRG'Page 349 of
s cotu1Sel,
19 Gigliotti believed that his texts were being backed up 011 Apple's iCloud, but it w~
20 later discovered (in mid-2016 when the Plaintiffs ' phones and iCloud back-!!ps were]
21 i.Jnaged) that i.J1 fact they were not bei.J1g backed up, and thtlS texts were only available
22
23 6 TI1e second Gigliotti text 111entioned states "I don' t want to discuss over [t]ext
24 si.J1ce I don't want to give [JastrelllSki) competitive adv[antage) if phones pulled[,)"
25 Jastren1Ski Deel, ,r 76, causes Jastren1Ski to testify that he "believe[s)" the lack of
production is i.J1te11tio11al; but Gigliotti was 111erely sayi.J1g that he did not want to
26 discuss his proprietary marketing ideas because he understood that he would i.J1 fact
27 have to produce his texts and did not want TRG to obtain this competitive
infonnation. Gigliotti Decl., ,r 6. In other words, the text de111011Strates that Gigliotti
28 i.J1tended to produce texts, not to withhold or destroy then1.
15
PLS.' OPPOSmON TO JASTRE."'1SKI AND TRG'S MOTION FOR TERMINATING SANCTIONS
-
Cai ~ 3:15-cv-00057-L-AGS Document 192 Filed 07/14/17 Pagel0 .6533 Page 20 of 29
1 back until Mardi 2016, as limited storage space on his phone caused older texts to be)
2 automatically deleted to niake roo111 for new ones. Gigliotti Deel., ,r 6. Tilis was notl
3 a result of any i.J1tentional act by Gigliotti, but rather a nlisunderstandi.J1g of how the
4 iCloud backup worked. Id. At worst, tllis is a result of"si.Jnple i.J1con:ipete11ce[,]"J
465
But Gigliotti Wanted Things To Be

Communicated To Him Via Text
CONFIDENTIAL
465
From: From: +18582134329 Richard Giggliotti
Timestamp: 12/4/2014 3:30:34 AM(UTC+0) _
Body:
Whatever that means make it a text not email

Timestamp: 12/4/2014 3:31:12 AM(UTC+0)
Body:
Call with SA compliance, legal, and transition
From: From: + 18582134329 Richard Giggliotti

Timestamp: 12/4/2014 3:50:24 AM(UTC+0)
Body:
Yes text to me not email
From : From : lloyd.silvers@gmail.com Lloyd J . Silvers
Timestamp: 12/6/ 20 14 11:04:11 PM(UTC+ O)
file:///C/Use.rs/AdmiD/Desktop/Lloyd0/420Tu t%20Doc slc.h:u-45.at[3J29120 I 7 11 :58:34 A.I\{}

TRGMGK609744 991 • 1
Gigliotti Fails To Produce Text
465
Messages
• Exhibit 567
• Exhibit 973
• Exhibit 978
• Exhibit 991
• Exhibit 992
• Exhibit 993
• Exhibit 994
465
ARDENT RETIREMENT
- - PLANNING--

12/17/2014

5. Cara.ann Morrison, threejabrones@gmail.com
6. Callers to work
8. JK RG and AM Questions
EXHIBIT
I 16 LP1
0\\11'n ~ -ze, . 17
567
file:///C:/Dalton Strategic/### Discovery Text Messages/Steve and Rich...
465
Approval first :)
1/8/15 7:26 PM
Than bonus with 2nd half at jeopardy. I can bring that much but could get screwed on back end of lawsuit
1/8/15 7:26 PM
I def want it lowered if you can.
1/8/15 7:26 PM
But worse case we will figure it out
1/8/15 7:27 PM
Since Jeremy lowered his, the economics of the deal overall are better. That's why I'm hoping to have more leverage when I speak to
him.
1/8/15 7:28 PM
Great!
1/8/15 10:39 PM
Any news?
1/8/15 10:41 PM (Viewed 1/8/15 10:42 PM)
Think false alarm
1/9/15 12:01 PM (Viewed 1/9/15 12:02 PM)
Thinks might still be going on
1/9/15 12:01 PM (Viewed 1/9/15 12:02 PM)
JK said Hanna heard they are giving new laptop they bought recently
1/9/15 12:02 PM
Could be total coincidence but I think we need wording of resignation letter ASAP just in case we need to bounce
1/9/15 12:03 PM
Agreed.
1/9/15 12:03 PM
If he has FSC run credit it says SA pulled it
1/9/15 12:03 PM
We are toast
1/9/15 12:04 PM
Anyway, did fires start yet just so we know?
1/9/15 12:04 PM
973 - 1
4 of 37 7/9/17, 8:59 PM
file:///C:/Dalton Strategic/### Discovery Text Messages/Steve and Rich...
465
Starting this afternoon.
1/9/15 12:05 PM
I was a bit concerned that the document that JJ made reference to with Reese was indeed a credit pole. And yes, SA did pull credit. So
if that's where he's fishing for evidence of your departure, he probably can find it.
1/9/15 12:05 PM
Then again, they pulled JK's credit several months ago and it never popped up, but then again maybe he never rechecked it
1/9/15 12:06 PM
Did he throw the document in JK's face again this morning?
1/9/15 12:07 PM (Viewed 1/9/15 12:08 PM)
Not yet
1/9/15 12:07 PM (Viewed 1/9/15 12:08 PM)
Just laptop crap
1/9/15 12:07 PM (Viewed 1/9/15 12:08 PM)
But nothing has happened yet
1/9/15 12:07 PM (Viewed 1/9/15 12:08 PM)
This is so frustrating
1/9/15 12:08 PM
Not sure why SA showed up cause usually if a soft pull is done it won't show
1/9/15 12:08 PM
Must have done hard pulls
1/9/15 12:08 PM
It shows up twice on mine
1/9/15 12:08 PM
I got an alert
1/9/15 12:08 PM
I believe they do hard pulls
1/9/15 12:09 PM
Out response if he asks is we were thinkin about it, not interested, some recruiter called us here at office offering 35% but don't remb
his name
1/9/15 12:09 PM
What do you think?
973 - 2
5 of 37 7/9/17, 8:59 PM
····-·-
# Chat Identi Start Time: Start Time: Time
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5/5/2016 8:40:23 +17169690208 Alex Mele (owner)

PM(UTC-4)
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+18582134329 Rich Gigs
+18582134329 Rich Gigs

5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
PM(UTC-4)
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+18582134329 Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
+18582134329 Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
+18582134329 Rich Gigs
+18582134329 Rich Gigs

--■■■■--■--
Number of
41
~ Alex Mele
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
41
41
41
~ Alex Mele
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)

41
41
Just bought iPad Air 2 ■------■-----------
attachments
Source
iMessage:
+17169690208
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+17169690208 Alex Mele
+17169690208 Alex Mele

To Participants
Timestamps
Subject Body
Hah!
700/yr more
I am pumped for Schwab now
Money
Another 85k in managed only
That's where the scheming will get done haha

Just bought iPad Air 2
That's where the scheming will get done haha

Status
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AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 PM(UTC-5) 8:02:24 AMele_iPhone_AdvLogicalMthd

2841 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 566 +18582134329 Rich Gigs Cool Read Unknown 11/6/2014 11/6/2014 8:33:33 11/6/2014 11/6/2014 8:33:38 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 PM(UTC-5) PM(UTC-5) AMele_iPhone_AdvLogicalMthd
2842 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 567 +18582134329 Rich Gigs Let's get Steve out here next wek Read Unknown 11/7/2014 11/7/2014 11:04:16 11/7/2014 11/7/2014 11:05:03 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 AM(UTC-5) AM(UTC-5) AMele_iPhone_AdvLogicalMthd
2843 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 568 +18582134329 Rich Gigs Put a case together find out what they care about Read Unknown 11/7/2014 11/7/2014 11:04:16 11/7/2014 11/7/2014 11:05:54 009- No
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9Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
+17169690208
iMessage:
+17169690208
569 +18582134329 Rich Gigs 2. Talk to Steve and his lawyer and see if weget Read
and what he is doing wrong
2. Talk to Steve and his lawyer and see if we get Read
finra started now
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2845 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 570 +18582134329 Rich Gigs 1. Find out best day to leave in Q1 Read Unknown 11/7/2014 11/7/2014 11:04:16 11/7/2014 11/7/2014 11:05:13 009- No
2846 9 9/26/2014
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571 +18582134329 Rich Gigs finra started now I think I have a great game plan Read Unknown 11/7/2014
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2847 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 572 +18582134329 Rich Gigs I thought about it this lot if Read Unknown 11/7/2014 11/7/2014 11:04:16 11/7/2014 11/7/2014 11:05:03 009- No
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9Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
+17169690208
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+17169690208
573 +18582134329 Rich Gigs 1. Find out best day to leave in 01
And talk this out Read Read Unknown 11/7/2014
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No
2849 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 574 +18582134329 Rich Gigs Get jk in too Read Unknown 11/7/2014 11/7/2014 11:04:16 11/7/2014 11/7/2014 11:05:03 009- No
2850 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 575 +18582134329 Rich Gigs Tell finra and maybe with all the shit going on we Read Unknown 11/7/2014 11/7/2014 11:06:24 11/7/2014 11/7/2014 11:06:31 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 quit and walk out and he can't do anything to us AM(UTC-5) AM(UTC-5) AMele_iPhone_AdvLogicalMthd
with finra around 1-050616
2851 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 576 +18582134329 Rich Gigs Right but it would be great strategy Read Unknown 11/7/2014 11/7/2014 11:06:24 11/7/2014 11/7/2014 11:08:16 009- No
2852 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigsl Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage:
+17169690208
577 +18582134329 Rich Gigs
Tell finra and maybe with all the shit going on we Read
What do you think? Read Unknown 11/7/2014 11/7/2014 11:06:24
AM(UTC-5)
11/7/2014 11/7/2014 11:07:19
AM(UTC-5) Unknown 009-
No
2853 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 578 +18582134329 Rich Gigs It's private too so he will never catch us Read Unknown 11/7/2014 11/7/2014 11:06:24 11/7/2014 11/7/2014 11:07:09 009- No
2854 9 9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
PM(UTC-4)
PM(UTC-4)
+18582134329 Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
+18582134329 Rich Gigs
41
+17169690208
iMessage:
+17169690208
579 +18582134329 Rich Gigs quit and walk out and he can't do anything to us
This could work Read Unknown 11/7/2014
AM(UTC-5)
11/7/2014 11:06:24
AM(UTC-5)
AM(UTC-5)
11/7/2014 11/7/2014 11:06:47
AM(UTC-5)
009-
No
2855 9
2856 9
9/26/2014
9/26/2014
9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
PM(UTC-4) +18582134329 Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
41
41
iMessage:
+17169690208
iMessage:
580
581
+18582134329 Rich Gigs
+18582134329 Rich Gigs

with finra around
Problem solved
They might even close him down for us

Read
Read
Unknown
Unknown
11/7/2014
11/7/2014
11/7/2014 11:06:24
AM(UTC-5)
11/7/2014 11:06:24
11/7/2014 11/7/2014 11:06:44
AM(UTC-5)
11/7/2014 11/7/2014 11:06:40
009-
009-
No
No
2857 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 582 +17169690208 Alex Mele We have to see if anything could or would Sent Unknown 11/7/2014 11/7/2014 11:07:58 11/7/2014 11/7/2014 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 implicate us first AM(UTC-5) 11:07:59 AMele_iPhone_AdvLogicalMthd
2858 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 583 +17169690208 Alex Mele I agree. I'm going to great the google drive where Sent Unknown 11/7/2014 11/7/2014 11:08:37 11/7/2014 11/7/2014 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 we can all share ideas and questions his AM(UTC-5) 11:08:38 AMele_iPhone_AdvLogicalMthd
weekend AM(UTC-5) 1-050616
2859 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 584 +18582134329 Rich Gigs I think I am going to call finra and ask for a list of Read Unknown 11/7/2014 11/7/2014 11:08:46 11/7/2014 11/7/2014 11:08:46 009- No
2860 9
2861 9
9/26/2014
9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
PM(UTC-4)
PM(UTC-4)
+18582134329 Rich Gigs
+18582134329 Rich Gigs

l Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)

41
41
+17169690208
iMessage:
+17169690208
iMessage:
585
586
+17169690208 Alex Mele
+17169690208 Alex Mele

lt1sprivate too so he will nevercatch us
illegal crap from a diff phone
Doing it all exclusively on iPad with a new email Sent
though
Create another google phone and call then Sent
Unknown
Unknown
11/7/2014
11/7/2014
Read
AM(UTC-5)
AM(UTC-5)
Unknown
11/7/2014 11:08:47 11/7/2014
11/7/2014 11:09:06 11/7/2014

11/7/2014
11:08:48
11/7/2014
AM(UTC-5)
11/7/2014 AMele_iPhone_AdvLogicalMthd
009-
009-
No
No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 AM(UTC-5) 11:09:08 AMele_iPhone_AdvLogicalMthd
2862 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 587 +17169690208 Alex Mele Them* Sent Unknown 11/7/2014 11/7/2014 11:09:13 11/7/2014 11/7/2014 009- No
2863 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 588 +18582134329 Rich Gigs Good idea Read Unknown 11/7/2014 11/7/2014 11:09:14 11/7/2014 11/7/2014 11:09:14 009- No
2864 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 589 +18582134329 Rich Gigs Cause if he is doing a few things that would close Read Unknown 11/7/2014 11/7/2014 11:09:50 11/7/2014 11/7/2014 11:09:51 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 these doors it's a perfect reason to leave we had AM(UTC-5) AM(UTC-5) AMele_iPhone_AdvLogicalMthd
no choice he was going down so we left 1-050616
2865 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 590 +18582134329 Rich Gigs Anyway get Steve out here next week Read Unknown 11/7/2014 11/7/2014 11:10:13 11/7/2014 11/7/2014 11:12:08 009- No
2866 9
2867 9
9/26/2014
9/26/2014
9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
,Rich Gigs
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)

41
41
iMessage:
+17169690208
iMessage:
+17169690208
591
592
+17169690208 Alex Mele
+18582134329 Rich Gigs

I'll talk to Lloyd
They might even close him downfor us

Him and Erik know lots of things he has done andRead
is doing
Sent Unknown
Unknown
11/7/2014
11/7/2014
11/7/2014 11:12:16 11/7/2014
Read
AM(UTC-5)
11/7/2014 11:20:13
AM(UTC-5)
11/7/2014
Unknown
11:12:17
11/7/2014 11/7/2014 11:20:16
AM(UTC-5)
11/7/2014
009-
009-
No
No
2868 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 593 +17169690208 Alex Mele You almost done? Sent Unknown 11/7/2014 11/7/2014 3:24:47 11/7/2014 11/7/2014 009- No
2869 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 594 +18582134329 Rich Gigs Yes ass munch Read Unknown 11/7/2014 11/7/2014 3:25:06 11/7/2014 11/7/2014 3:26:25 009- No
2870 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 595 +18582134329 Rich Gigs Google drive options Read Unknown 11/8/2014 11/8/2014 10:37:44 11/8/2014 11/8/2014 10:37:58 009- No
2871 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 596 +18582134329 Rich Gigs Enroll in 2-step verification. 2-step verification Read Unknown 11/8/2014 11/8/2014 10:37:44 11/8/2014 11/8/2014 10:37:58 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 adds an extra layer of security to your account by AM(UTC-5) AM(UTC-5) AMele_iPhone_AdvLogicalMthd
requiring you to sign in with something you know 1-050616
(your password) and something you have (a
3 Alex Mele I agree. I'm going to great the google drive where Sent
code sent to your phone). Unknown 11 /7/2014
2872 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 597 +18582134329 Rich Gigs If you’re on a public or shared computer, you Read Unknown 11/8/2014 11/8/2014 10:40:01 11/8/2014 11/8/2014 10:52:12 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 we can all share ideas and questions his
shouldn't install Google Drive for your Mac/PC, as
anyone with access to the computer would be
AM(UTC-5) AM(UTC-5) AMele_iPhone_AdvLogicalMthd
1-050616
able to open and view your files.
2873 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
41 iMessage:
+17169690208
598 +18582134329 Rich Gigs weekend Choose an appropriate sharing setting — Private, Read
Anyone with the link, or Public — for your files,
Unknown 11/8/2014 11/8/2014 10:40:26
AM(UTC-5)
11/8/2014 11/8/2014 10:52:12
AM(UTC-5)
009-
No
folders and Google documents. 1-050616

2874 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs
3 Rich Gigs
+17169690208
599 +18582134329 Rich Gigs I think I am going to call finra and ask for a list of Read
That's all I found Read Unknown 11/8/2014 11/8/2014 10:40:34
AM(UTC-5)
Unknown 11/8/2014 11/8/2014 10:52:12
AM(UTC-5)
11 /7/2014 009-
No
2875 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 600 +18582134329 Rich Gigs Just making sure no one can get into this Read Unknown 11/8/2014 11/8/2014 10:40:43 11/8/2014 11/8/2014 10:52:12 009- No
2876 9 9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
+17169690208
iMessage: 601 +18582134329 Rich Gigs
illegal crap from a diff phone
Jim could see johns at my house for some Read Unknown 11/8/2014
AM(UTC-5)
11/8/2014 10:40:48
AM(UTC-5)
11/8/2014 11/8/2014 10:52:12
009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 reason. Might be his settings and I know he has AM(UTC-5) AM(UTC-5) AMele_iPhone_AdvLogicalMthd
3 Alex Mele Doing it all exclusively on iPad with a new email Sent
seen my richiegig email account so just want to
make sure secure
Unknown 11 /7/2014 1-050616
2877 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 602 +17169690208 Alex Mele Yeah, the google docs can only be shared with Sent Unknown 11/8/2014 11/8/2014 10:52:45 11/8/2014 11/8/2014 009- No
2878 9 9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
+17169690208
iMessage: 603 +17169690208 Alex Mele
though people on the shared list
But we can discuss, are you coming in? Sent Unknown 11/8/2014
AM(UTC-5)
11/8/2014 10:52:53 11/8/2014
10:52:45
11/8/2014
009- No
2879 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
3 Alex Mele
+17169690208
604 +18582134329 Rich Gigs Create another google phone and call then
Y Sent Read Unknown 11/8/2014 11/8/2014 10:53:36
AM(UTC-5)
Unknown 11/8/2014 11/8/2014 10:54:19
AM(UTC-5)
11 /7/2014 009-
No
2880 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 605 +17169690208 Alex Mele Does Tyson know anything about our plans? Sent Unknown 11/8/2014 11/8/2014 3:39:40 11/8/2014 11/8/2014 009- No
2881 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 606 +18582134329 Rich Gigs Not that I know of Read Unknown 11/8/2014 11/8/2014 3:40:00 11/8/2014 11/8/2014 3:40:05 009- No
2882 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
3 Alex Mele
+17169690208
607 +18582134329 Rich Gigs Them* Why Read Unknown 11/8/2014 Sent
11/8/2014 3:40:09
PM(UTC-5)
Unknown 11/8/2014 11/8/2014 3:40:09
PM(UTC-5)
11/7/2014 009-
No
2883 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 608 +17169690208 Alex Mele K golfing with him soon Sent Unknown 11/8/2014 11/8/2014 3:40:13 11/8/2014 11/8/2014 009- No
2884 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 609 +18582134329 Rich Gigs He can't leave Read Unknown 11/8/2014 11/8/2014 3:40:17 11/8/2014 11/8/2014 3:40:17 009- No
2885 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
3 Rich Gigs
+17169690208
610 +18582134329 Rich Gigs
Good idea Talk to LJS Read Unknown 11/8/2014
Read
11/8/2014 3:43:44
PM(UTC-5)
Unknown 11/8/2014 11/8/2014 3:55:07
PM(UTC-5)
11 /7/2014 009-
No
2886 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 611 +17169690208 Alex Mele You still there Sent Unknown 11/8/2014 11/8/2014 3:55:30 11/8/2014 11/8/2014 009- No
2887 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 612 +18582134329 Rich Gigs No Read Unknown 11/8/2014 11/8/2014 3:56:03 11/8/2014 11/8/2014 4:01:40 009- No
2888 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 613 +18582134329 Rich Gigs Jamani is her name. You gonna hook a brother Read Unknown 11/8/2014 11/8/2014 6:34:24 11/8/2014 11/8/2014 6:37:02 009- No
2889 9 9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
• Rich Gigs +17169690208
GoogleSon
up?drive
XOM options Read Unknown 11/8/2014
Read
PM(UTC-5)
11/8/2014 6:34:24
Unknown
11/8/2014
PM(UTC-5)
11/8/2014 6:37:02
11/8/2014 AMele_iPhone_AdvLogicalMthd
009- No
2890 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 615 +18582134329 Rich Gigs My client wants to meet a ny rep with her don Read Unknown 11/8/2014 11/8/2014 6:34:24 11/8/2014 11/8/2014 6:37:02 009- No
2891 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
PM(UTC-4) +18582134329 Rich Gigs • Rich Gigs
41 iMessage:
+17169690208
616 +18582134329 Rich Gigs
Enroll in 2-step verification. 2-step
West Chester during Thanksgiving until Monday Read
the 6th
Unknown
verification
11/8/2014
Read 11/8/2014 6:34:24
PM(UTC-5)
Unknown 11/8/2014 11/8/2014 6:37:02
PM(UTC-5) 11/8/2014 009-
No
2892 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 617 +18582134329 Rich Gigs Monday the 1st or 8th not sure but be there all Read Unknown 11/8/2014 11/8/2014 6:36:32 11/8/2014 11/8/2014 6:37:02 009- No
2893 9 9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
+17169690208
iMessage: 618 +17169690208 Alex Mele
adds an extra
Thansgiving You gonna beof
week. layer
I will be in NY Monday Tuesday before
security
in TX??
Sent
to your
Unknown
account
11/9/2014
by PM(UTC-5)
11/9/2014 5:21:52
PM(UTC-5) AMele_iPhone_AdvLogicalMthd
009- No
2894 9 9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
+17169690208
iMessage: 619 +17169690208 Alex Mele requiring
You're you
thanksgiving
to
gonna have sign mein withSentsomething
to compensate Unknown you 11/9/2014
know PM(UTC-5)
11/9/2014 5:21:52
009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 PM(UTC-5) AMele_iPhone_AdvLogicalMthd
2895 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
41 iMessage:
+17169690208
620 +17169690208 Alex Mele (your password)
But then in Texas. and something Sent you have (a
Unknown 11/9/2014 11/9/2014 5:24:00
PM(UTC-5)
009-
No
2896 9 9/26/2014 9/26/2014 11:39:03 5/5/2016

AM(UTC-4)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
41 iMessage:
+17169690208
621 +18582134329 Rich Gigs
code sent to your phone).
Okay if we close it will figure out what you deserveRead Unknown 11/9/2014 11/9/2014 6:40:07
PM(UTC-5)
11/9/2014 11/9/2014 6:40:15
PM(UTC-5)
009-
No
2897 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 622 +18582134329 Rich Gigs Might not be there long enough to get it Read Unknown 11/9/2014 11/9/2014 6:40:15 11/9/2014 11/9/2014 6:40:15 009- No
2898 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 623 +18582134329 Rich Gigs March 31 st Read Unknown 11/9/2014 11/9/2014 6:40:24 11/9/2014 11/9/2014 6:40:24 009- No
2899 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) • Rich Gigs
41 iMessage: 624 +17169690208 Alex Mele If you're onwe make
No way, a public or Yeah
an agreement before. sharedwe Sent computer,
Unknown you11/9/2014 Read 11/9/2014 6:40:34 11/9/2014 Unknown
11/9/2014 11/8/2014 009- No
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 won't be at TRG then PM(UTC-5) 6:40:35 AMele_iPhone_AdvLogicalMthd
2900 9 9/26/2014 9/26/2014 11:39:03 5/5/2016
AM(UTC-4)
5/5/2016 8:40:23 +17169690208 Alex Mele (owner)
41 iMessage:
+17169690208
625 +18582134329 Rich Gigs shouldn't
Did youinstall
talk to LJS Google Drive Read for your Mac/PC,
Unknown 11/9/2014 a:; 11/9/2014 6:40:48
PM(UTC-5)
11/9/2014 11/9/2014 6:43:10
PM(UTC-5)
009-
No
2901 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 626 +18582134329 Rich Gigs
AM(UTC-4) PM(UTC-4) +18582134329 Rich Gigs +17169690208 anyoneSo with
how does a swift kick in the balls sound
access to the Read Unknown
computer would 11/9/2014
be 11/9/2014 6:40:48
PM(UTC-5)
11/9/2014 11/9/2014 6:43:10
PM(UTC-5)
009-
No
2902 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 627 +18582134329 Rich Gigs Dbag? Read Unknown 11/9/2014 11/9/2014 6:42:56 11/9/2014 11/9/2014 6:43:10 009- No
2903 9 9/26/2014
AM(UTC-4)
9/26/2014 11:39:03 5/5/2016
5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41
+17169690208
able to open and view yourReadfiles. Unknown 11/9/2014
PM(UTC-5)
11/9/2014 6:42:56
PM(UTC-5)
11/9/2014 11/9/2014 6:43:36
009- No
• Rich Gigs ChooseIf youan appropriate
received a non-emergency credit cardsharing
debt setting - Private Read Unknown 11/8/2014 1-050616
collection call on your cellular telephone from
AnyoneCapital
with the link, or
One through the use of an automatic
Public
telephone dialing system and/or an artificial or
- for your files,
foldersprerecorded
and
from
voice, you could receive a payment
a class Google documents.
action settlement. You received this
email because Capital One’s records show you
• Rich Gigs That's all I found
may be a member of the Settlement Class.
Read Unknown 11/8/2014
2904 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 629 +18582134329 Rich Gigs Also check this out from cap one Read Unknown 11/9/2014 11/9/2014 6:42:56 11/9/2014 11/9/2014 6:43:30 009- No
2905 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 630 +17169690208 Alex Mele I did bro Sent Unknown 11/9/2014 11/9/2014 6:43:14 11/9/2014 11/9/2014 009- No
41• Rich Gigs Just making sure no one can get into this Read Unknown 11/8/2014
2906 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) iMessage: 631 +17169690208 Alex Mele Not* Sent Unknown 11/9/2014 11/9/2014 6:43:17 11/9/2014 11/9/2014 009- No
2907 9 9/26/2014 9/26/2014 11:39:03 5/5/2016 5/5/2016 8:40:23 +17169690208 Alex Mele (owner) 41 iMessage: 632 +17169690208 Alex Mele I did not* Sent Unknown 11/9/2014 11/9/2014 6:43:20 11/9/2014 11/9/2014 009- No
978 - 1
CONFIDENTIAL
465
Timestamp: 12/4/2014 3:26:56 AM(UTC+0)
Body:
"Looks like all parties can do next Wednesday at 1pm cst (11am pst). I'll send an outlook item tomorrow. "
that is a text from Sam regarding the telephone HOV.
-----------------------------
Timestamp: 12/4/2014 3:27:15 AM(UTC+0)
Body:
Let me know if that works
-----------------------------
Timestamp: 12/4/2014 3:30:34 AM(UTC+0)
Body:
Whatever that means make it a text not email
-----------------------------
Timestamp: 12/4/2014 3:31:12 AM(UTC+0)
Body:
Call with SA compliance, legal, and transition
-----------------------------
Timestamp: 12/4/2014 3:50:24 AM(UTC+0)
Body:
Yes text to me not email
-----------------------------
Timestamp: 12/4/2014 3:54:48 AM(UTC+0)
Body:
The email will go to Steve, you have the time and I will get you call info if needed
-----------------------------
Timestamp: 12/6/2014 8:24:32 PM(UTC+0)
Body:
I really need to talk to you today when you have 5 minutes
-----------------------------
Timestamp: 12/6/2014 9:26:24 PM(UTC+0)
Body:
Okay give me twenty
-----------------------------
Timestamp: 12/6/2014 9:56:16 PM(UTC+0)
Body:
No worries, anytime
-----------------------------
Timestamp: 12/6/2014 11:04:11 PM(UTC+0)

TRGMGK609744 991 - 1
CONFIDENTIAL
465
Timestamp: 1/8/2015 4:00:00 PM(UTC+0)
Body:
NP let me know when so I can stay on trqck
-----------------------------
Timestamp: 1/8/2015 4:00:00 PM(UTC+0)
Body:
You do know there is a fuel surcharge
-----------------------------
Timestamp: 1/8/2015 4:00:00 PM(UTC+0)
Body:
I am going to head down later this morning so I can stay out of traffic
-----------------------------
Timestamp: 1/8/2015 9:55:51 PM(UTC+0)
Body:
I am back
-----------------------------
Timestamp: 1/9/2015 12:02:08 AM(UTC+0)
Body:
Are you coming this way?
-----------------------------
Timestamp: 1/9/2015 12:04:16 AM(UTC+0)
Body:
When you leaving
-----------------------------
Timestamp: 1/9/2015 12:04:16 AM(UTC+0)
Body:
Yes
-----------------------------
Timestamp: 1/9/2015 12:04:16 AM(UTC+0)
Body:
I need that laptop tonight
-----------------------------
Timestamp: 1/9/2015 12:08:32 AM(UTC+0)
Body:
I don't know...apparently after we meet up to get you this laptop
-----------------------------
Timestamp: 1/9/2015 12:10:40 AM(UTC+0)
Body:

TRGMGK609757 992 - 1
CONFIDENTIAL
465
Body:
What do you want forwarded? I left a message for Pam, but she had gone home, I am not sure what time it
was but I will call her again first thing in the morning
-----------------------------
Timestamp: 2/3/2015 3:13:07 AM(UTC+0)
Body:
She was supposed to book it
-----------------------------
Timestamp: 2/3/2015 3:13:24 AM(UTC+0)
Body:
We don't have time to sit around clients want access
-----------------------------
Timestamp: 2/3/2015 3:18:24 AM(UTC+0)
Body:
I understand the urgency, you need to move clients for them to have access, stop panicking, if you had
access today, you would still have no clients that would need access because you have no accounts, focus
on getting your clients here and I will make sure you are set
-----------------------------
Timestamp: 2/3/2015 3:38:54 AM(UTC+0)
Body:
Lol I should have clients but will see. Tina processed some for me she will have a lot to process weds like
10-20 for me
-----------------------------
Timestamp: 2/3/2015 3:39:44 AM(UTC+0)
Body:
Strange
-----------------------------
Timestamp: 2/3/2015 3:39:44 AM(UTC+0)
Body:
Send me copy of TRG crap we all didn't get but you
-----------------------------
Timestamp: 2/3/2015 3:39:44 AM(UTC+0)
Body:
Just want all ducks in a row. Sending you appts weds as well they are all filled out and ready to send to SAI
-----------------------------
Timestamp: 2/3/2015 3:41:25 AM(UTC+0)
Body:
Perfect...I just want to keep things of priority in focus and try to get it done in some kind of order,
appointments, client signatures, see accounts
-----------------------------

TRGMGK609762 993 - 1
CONFIDENTIAL
465
From: LLOYD SILVERS

To: RICHARD GIGLIOTTI
Subject: RE: Split Codes
Date: Wednesday, September 9, 2015 6:16:00 PM
Well, my suggestion would be to find someone that knows how to migrate a record from one Zoho
to another.

Thanks,

Lloyd J. Silvers
Financial Advisor

(800) 875-1986 Office
(858) 367-5771 Direct
(858) 345-2021 Fax

Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services
offered through Securities America Advisors, Inc. Capital Income Advisors and Securities America,
Inc. are separate entities. Trading instructions sent via e-mail may not be honored. Please contact
my office at (800) 875-1986 or Securities America, Inc. at (800) 747-6111 for all buy/sell orders.
Please be advised that communications regarding trades in your account are for informational
purposes only. You should continue to rely on confirmations and statements received from the
custodian(s) of your assets. The text of this communication is confidential, and use by any person
who is not the intended recipient is prohibited. Any person who receives this communication in
error is requested to immediately destroy the text of this communication without copying or further
dissemination. Your cooperation is appreciated.

From: RICHARD GIGLIOTTI
Sent: Wednesday, September 9, 2015 3:25 PM
To: LLOYD SILVERS <lsilvers@capitalincomeadvisors.com>

When a person goes from a prospect to a client, they are to be moved from ARP zoho to CIA zoho.
Best Regards,

TRGMGK611738 994 - 1
CONFIDENTIAL
465
rgigliotti@capitalincomeadvisors.com | Phone: (800) 875-1986 | Fax: (858) 207-4619
capitalincomeadvisors.com | 6480 Weathers Place Suite 200 | San Diego, CA 92121

America Advisors, Inc. and Arbor Point Advisors LLC. Capital Income Advisors, the Securities America companies, and
Arbor Point Advisors LLC are separate entities. Trading instructions sent via e-mail may not be honored. Please contact my
office at (800) 875-1986 or Securities America, Inc. at (800) 747-6111 for all buy/sell orders. Please be advised that
communications regarding trades in your account are for informational purposes only. You should continue to rely on
confirmations and statements received from the custodian(s) of your assets. The text of this communication is confidential,
and use by any person who is not the intended recipient is prohibited. Any person who receives this communication in error
is requested to immediately destroy the text of this communication without copying or further dissemination. Your
cooperation is appreciated. If you no longer want to receive e-mail from me, please reply to this email with the word
unsubscribe in the subject line. CA Insurance License# 0H83102 / TX Insurance License# 1757279
From: LLOYD SILVERS

Rich,

I don’t know what this means and you may have meant it for someone else.

Thanks,

Lloyd J. Silvers
Financial Advisor

(800) 875-1986 Office
(858) 367-5771 Direct
(858) 345-2021 Fax

TRGMGK611739 994 - 2
CONFIDENTIAL
465

From: RICHARD GIGLIOTTI
To: LLOYD SILVERS <lsilvers@capitalincomeadvisors.com>

Thank you. Please move over the following person into CIA now that he is a client:

Michael Burr, Texas

Best Regards,

rgigliotti@capitalincomeadvisors.com | Phone: (800) 875-1986 | Fax: (858) 207-4619
capitalincomeadvisors.com | 6480 Weathers Place Suite 200 | San Diego, CA 92121

America Advisors, Inc. and Arbor Point Advisors LLC. Capital Income Advisors, the Securities America companies, and
Arbor Point Advisors LLC are separate entities. Trading instructions sent via e-mail may not be honored. Please contact my
office at (800) 875-1986 or Securities America, Inc. at (800) 747-6111 for all buy/sell orders. Please be advised that
communications regarding trades in your account are for informational purposes only. You should continue to rely on
confirmations and statements received from the custodian(s) of your assets. The text of this communication is confidential,
and use by any person who is not the intended recipient is prohibited. Any person who receives this communication in error
is requested to immediately destroy the text of this communication without copying or further dissemination. Your
cooperation is appreciated. If you no longer want to receive e-mail from me, please reply to this email with the word
TRGMGK611740 994 - 3
CONFIDENTIAL
465
unsubscribe in the subject line. CA Insurance License# 0H83102 / TX Insurance License# 1757279
From: LLOYD SILVERS

Subject: Split Codes
Gigliotti/Dalton/Wilt/Davenport- #97147-4ZE-Effective: 8/25/2015

Gigliotti/Dalton/Wilt/Davenport- #97148-4ZF-Effective: 8/25/2015

Lloyd J. Silvers
Financial Advisor

(800) 875-1986 Office
(858) 367-5771 Direct
(858) 345-2021 Fax


TRGMGK611741 994 - 4
465
Gigliotti Says His Dropbox Disappeared

465
·1· I don't remember.

·2· BY MR. KLEIN:
·3· · · ·Q· ·Have you ever used Dropbox to store client
·4· information?
15:38 ·5· · · · · ·MR. REYNOLDS:· Asked and answered.
·6· · · · · ·THE WITNESS:· I mean, I rarely -- I had a
·7· Dropbox.· I don't know that I ever accessed it after
·8· I left TRG 'cause I didn't know what the heck was in
·9· it.· I didn't use it that much.· I think I deleted
15:39 10· it.· In fact, I think I got e-mails later that --
11· that stated, "You haven't used your Dropbox in a
12· year, and if you don't use it soon, we're going to
13· delete it," and it eventually just went away 'cause I
14· just -- I never even wanted to look at what was in
15:39 15· there 'cause I didn't know if there was proprietary
16· TRG information.
17· BY MR. KLEIN:
18· · · ·Q· ·Well, when did your Dropbox get deleted?
19· · · ·A· ·No idea.· I mean, it was just some e-mail I
15:39 20· got.
21· · · ·Q· ·Did you produce any documents from your
22· Dropbox?
23· · · ·A· ·I never opened it, so probably there was
24· nothing in it, or whatever was in it just went away.
15:39 25· · · ·Q· ·Well, on the one end, you're telling me you

(714) 838-9119
Gigliotti 292:03 - 292:04
YVer1f
465
Gigliotti Never Discloses Box.com Or

OneDrive, But Testifies Everything Is
On OneDrive
Cha;s ( 11) 465
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980 · 1
1 RESPONSE TO INTERROGATORY
Case 3:15-cv-00057-L-AGS NO. 4:PageID.34264
Document 404-7 Filed 04/25/19 Page 368 of
465
2 Salesforce as n1aintained on TRG 's platform (July 1, 2013, to termination
3 ,;vith TRG)
4 Salesforce as n1aintained on FSC 's platform (July 1, 2013 , to te1n1ination ,;vith
5 FSC)
6 Vision 2020 as n1aintained on FSC ' s platfom1 (July 1, 2013 to termination
7 ,;vith FSC)
8 Microsoft Outlook & Word (from affiliation ,;vith Securities America to
9 present)
10 Microsoft Excel (Febn1ary 2015 to present)
11 Zoho (January 2015 to present)
22 St:PPLE~IE:\"T AL RESPO:\"SE TO ThT ERRO GATORY :\"O. 5:
23 Plaintiff supplements his respo11se by stating that, in addition to his original
24 response, all facts currently !mown to him in support of this allegation have been
25 pled in the operatiw complaint in this action. Plaintiff believes that once he is
26 permitted to serve discoveiy requests on Defendants, documents and infonnation
27 disc.overed therein will support such allegation, and Plaintiff reserves the right to
28 an1end this response accordingly.
-7-
PLID'TIFF GIGuom·s COMPIUD R.ESPO:SS[ TO TRG"S
A..\ !EJ\1>ED L"\1ERROGATORIES (SET O:-.-CJ
465
Mele Does Not Disclose Google Drive,

But Documents Show He Used It
465
To: alexande~amesmele@gmail.com[alexanderjamesmele@gmail.com]
From: Lloyd Silvers (via Google Drive)
Sent Tue 1/13/2015 11 :15:54 PM
Subject: Account Forms - Invitation to collaborate
1§.ijvers@g,_~!lfenJe,!.l!Q!,gQ!lin~J.-~Orl) has invited you to work in the following shared folder:
Account Forms
Google Drive; Have all your files within reach from any device.
w .. ...--g-- :c r:bC-1 <:,

DAT • : l/ z_o/ t 1
.,..,. ____ ~ C>- :P.A. _ _ _ ::_ - - - ' - - - •
2 21
:>{~~,--::3.:-::~?l~;,Case
~_;c_·:..-3:15-cv-00057-L-AGS
) f ·<_- ..-~:~. _ Document 404-7 Filed 04/25/19 PageID.34267 Page 371 of
465
.- ·- . . . - .
1259 5 • 13175905755 I just cleared a phone call. Rich. c..l mo Read 319/2016 4:02:18 31912016
Steve Dalton PM(UTC.O)
1260 5 +1317590>755 Cell Road 3/9/2016 4:02:22 31912016
+18052330839 This is Tina. What is ur email address so 1can share the Google drive Read
Tina with you.
-f-17169690208 Alexanderjamesmele@gmail.com Sent
Alex Mele
+18052330839 Sent Read
Tina
+17169690208 Thank you!! Sent
Alex Mele
Tina city were you married PM(UTC-5)
1269 6 +17169690.208 Haha I know, the answer is: married Sent 111412015 9:26:04 1/14/2015 1/14/2015 9:26:05 2124/2015
Alex Mele PM(UTC-5) PM(UTC-5)
1270 6 +17169690208 I cheat those Sco1 1/14/2015 9:26:07 1114/2015 1/14/2015 9:26:07 2124/2015
Nex Mele PM(UTC,5) PM(UTC-5)
1271 6 +18052330839 lolthx ~•ad 1114/2015 9:26:14 1114/2015
lina PM(UTC-5)
1272 6 +17169690208 I jost pu: the last word or second to last word Sent 1114/2015 9:25:16 1/14/2015 1/1412015 9:26:16 2124/2015
AA,x Mele PM(UTC..S) PM(UTe-5)
1273 6 +17169690208 A:s the answer Sent 1/1412015 9:26:20 1/14/2015 1/14/2015 9:26:20 2124/2015
Alex Mele PM(UTC.O) PM(UTc-5)
Exhibit 525
Abernathy
3/29/17
Kae Gernandt, CSR 115342
465
22 RESPONSE TO INTERROGATORY NO. 4:
23 Salesforce as 1naintained on TRG's platfonn (July 1, 2013, to tennination
24 with TRG)
25 Salesforce as rnaintained on FSC 's platfonn (July 1, 2013 , to termination vvith
26 FSC)
27 Vision 2020 as n1aintained on FSC' s platfonn (July 1, 2013 to tennination

28 with FSC)
-7-
PLAINTIFF i\1ELE'S COIVIPILED RESPO:i\"SE TO TRG'S AIVIE:i\"DED INTERROGATORIES (SET ONE]
I Microsoft Outlook (frorn affiliation with Securities An1erica to present)

2 Microsoft Excel (Decernber 2014 to present)
3 Zoho (January 2015 to present)
A
465
Dalton Directs The Effort To Withhold

Information And Not Load Information
Where It Might Be Found
465
_ _ . _ . . . . . . . . . (+1317111111H) ... - - --11'11'11111111. . . , . _ (lUJNJm)
IIID/11 :tmNi-1111111 1:U ...
lnl&tlll(
21479C3871
)
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Aratlllllll ,alnl II llllt.-, lta, In
995 • 1
465
Dalton Knowingly Lies In Deposition

And At This Hearing (e.g. “Tread
Lightly”). He Delays And Obstructs
Discovery And Destroys Evidence
465
04:53:30 ·1· · · · done.· If she does show, I will formally put her on
·2· · · · probation and let her go by the end of next week."
·3· · · · Do you remember him ever telling you something like
·4· · · · that?
04:53:41 ·5· ·A.· ·My previous testimony was that there were problems
·6· · · · with Ms. Abernathy showing up at work, being
·7· · · · volatile at work, and I knew that her tenure at the
·8· · · · office was in question.
·9· ·Q.· ·Do you remember responding on May 5, 2014, to
04:54:04 10· · · · Mr. Silvers in an email?
11· ·A.· ·I don't remember responding.
12· ·Q.· ·Well, there is an email that says, supposedly from
13· · · · you to him in response that says "Tread lightly.
14· · · · Remember, if she decides to call John and stir the
04:54:23 15· · · · pot out of revenge, we have issues."· Did you write
16· · · · that?
17· ·A.· ·Yes.
18· ·Q.· ·What issues are you referencing?
19· ·A.· ·I have no idea.
04:54:41 20· ·Q.· ·Do you want to take a moment and think of what it
21· · · · might have been?
22· · · · · · ·MR. EDGERTON:· Objection.· Calls for
23· · · · speculation, conjecture.
24· ·Q.· ·If you can't do it, if you don't know, you don't
04:54:53 25· · · · know.· Is it true, as you sit here today, you don't

Dalton 180:24-181:18
YVer1f
465
Dalton Lies Under Oath Regarding The

“Crack It” Incident
465
04:57:32 ·1· ·A.· ·No.

·2· · · · · · ·(Exhibit 654 introduced for identification.)
·3· ·Q.· ·Take a look at Exhibit 654.· When you're done
·4· · · · reviewing it, tell me when you're ready, and we'll
04:58:01 ·5· · · · discuss it.
·6· ·A.· ·Okay.
·7· ·Q.· ·Do you remember these exchanges on or about
·8· · · · August 4, 2015?
·9· ·A.· ·No.
04:58:29 10· ·Q.· ·Mr. Silvers writes to you on August 4, 2015, "I
11· · · · think her laptop is here."· That was referring to
12· · · · Abernathy's personal laptop; true?
13· ·A.· ·I wouldn't have any way of knowing that.
14· ·Q.· ·Did you respond moments or minutes later with the
04:58:50 15· · · · question, "Lap dance"?
16· ·A.· ·As I said before, I don't recall this entire
17· · · · interchange.
18· ·Q.· ·You then write "Or lap top."· As you sit here
19· · · · today, can you explain that?
04:59:12 20· ·A.· ·Lap dance or laptop, it's vague.· It's cryptic.· No
21· · · · idea.
22· ·Q.· ·Dropping down, on August 4, 2015, at 7:43 you
23· · · · write, "Crack it.· Let's get this done."· Did you
24· · · · write that?
04:59:31 25· ·A.· ·Yes, it looks like I did.· I don't recall doing it.

YVer1f
465
04:59:35 ·1· ·Q.· ·What did you mean by crack it?

·2· ·A.· ·My prior testimony this morning, counselor, was I
·3· · · · do remember having concerns that since
·4· · · · Ms. Abernathy, who was the only one in the office
04:59:47 ·5· · · · who used her personal laptop, would be in
·6· · · · possession of information that she was not allowed
·7· · · · to leave with.· And, therefore, Lloyd should crack
·8· · · · her computer open, take a look, search it.· It is
·9· · · · on our premises, and it is hooked up to our system,
05:00:05 10· · · · and see if there is anything on that computer that
11· · · · she is not supposed to have.
12· ·Q.· ·So this is her personal computer, which you allowed
13· · · · her to use; right?
14· ·A.· ·Right.
05:00:17 15· ·Q.· ·Yes?
16· ·A.· ·Yes.
17· ·Q.· ·And how long had she been using that computer?
18· ·A.· ·I don't know.· I wasn't in the office.
19· ·Q.· ·And is it true that at about this time you decided
05:00:30 20· · · · you were going to terminate her?
21· ·A.· ·I don't recall when she was terminated or when I
22· · · · decided to terminate her.· It was two years ago.
23· ·Q.· ·Did Lloyd Silvers tell you what he did to address
24· · · · your concerns that she might have private client
05:00:47 25· · · · information on her personal computer?

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05:00:50 ·1· ·A.· ·I don't recall having a conversation with Lloyd

·2· · · · about that.
·3· · · · · · ·MR. EDGERTON:· Gerry, it's five o'clock.· We
·4· · · · need a break.
05:00:58 ·5· · · · · · ·MR. KLEIN:· We'll get -- no.· I want to finish
·6· · · · this.
·7· ·Q.· ·Did you tell Tina Abernathy, after Lloyd Silvers
·8· · · · did whatever he did, that you had done something?
·9· ·A.· ·I don't recall any conversations with Tina
05:01:17 10· · · · Abernathy about anything that Lloyd may or may not
11· · · · have done.
12· ·Q.· ·Did Lloyd Silvers tell you he had told Tina
13· · · · Abernathy that he had gone into her personal
14· · · · computer and done something to it?
05:01:34 15· ·A.· ·I don't recall Lloyd Silvers telling me that, no.
16· ·Q.· ·Now, on August 4, 2015, moments after you say
17· · · · "Crack it," Lloyd Silvers says "I need Sam to go to
18· · · · lunch."· Is Sam her roommate?
19· ·A.· ·I don't know who Sam is.
05:01:55 20· ·Q.· ·And you respond "Good call."· Why did you write
21· · · · that?
22· ·A.· ·I don't know.
23· ·Q.· ·Did you wind up buying a new hard drive for Tina?
24· ·A.· ·I recall that there was a problem with her
05:02:14 25· · · · computer.· I think there was, I remember reading

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05:02:19 ·1· · · · something about speculation about a power surge.

·2· · · · There was speculation about a virus.· And I recall
·3· · · · vaguely making sure that if, hey, if her equipment
·4· · · · got damaged in the usage, business usage, that we
05:02:35 ·5· · · · sort of had an obligation to repair it for her,
·6· · · · yes.
·7· ·Q.· ·Is that a power surge or virus or whatever happened
·8· · · · around August 4, 2015?
·9· ·A.· ·Counselor, I didn't say that a power surge happened
05:02:48 10· · · · or that a virus happened.· I said I remember seeing
11· · · · something, discussions relative to that.· It could
12· · · · have been in the mounds of discovery in this case.
13· ·Q.· ·Did whatever happened to Tina Abernathy's computer
14· · · · happen on or after August 4, 2015?
05:03:06 15· ·A.· ·Given the fact that I was 3,000 miles away, I don't
16· · · · know what happened to her computer.· I don't know
17· · · · what the resolution is.· I wasn't there.· I have no
18· · · · idea, and I can't speak to it.
19· · · · · · ·MR. KLEIN:· Okay.· Let's take a break.
05:03:24 20· · · · · · ·Five minutes, Sam?· Will that work for you?
21· · · · · · ·MR. EDGERTON:· I think it might -- well, you
22· · · · know, you say five, it's really ten.· So why don't
23· · · · we say what it's really going to be.· It's going to
24· · · · be ten.· We've been going here for a while.· It's
05:03:31 25· · · · five o'clock.

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465
Dalton’s Testimony He And Silvers

Discussed Personal Information
Problem Was False
465
04:59:35 ·1· ·Q.· ·What did you mean by crack it?

·2· ·A.· ·My prior testimony this morning, counselor, was I
·3· · · · do remember having concerns that since
·4· · · · Ms. Abernathy, who was the only one in the office
04:59:47 ·5· · · · who used her personal laptop, would be in
·6· · · · possession of information that she was not allowed
·7· · · · to leave with.· And, therefore, Lloyd should crack
·8· · · · her computer open, take a look, search it.· It is
·9· · · · on our premises, and it is hooked up to our system,
05:00:05 10· · · · and see if there is anything on that computer that
11· · · · she is not supposed to have.
12· ·Q.· ·So this is her personal computer, which you allowed
13· · · · her to use; right?
14· ·A.· ·Right.
05:00:17 15· ·Q.· ·Yes?
16· ·A.· ·Yes.
17· ·Q.· ·And how long had she been using that computer?
18· ·A.· ·I don't know.· I wasn't in the office.
19· ·Q.· ·And is it true that at about this time you decided
05:00:30 20· · · · you were going to terminate her?
21· ·A.· ·I don't recall when she was terminated or when I
22· · · · decided to terminate her.· It was two years ago.
23· ·Q.· ·Did Lloyd Silvers tell you what he did to address
24· · · · your concerns that she might have private client
05:00:47 25· · · · information on her personal computer?

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05:00:50 ·1· ·A.· ·I don't recall having a conversation with Lloyd

·2· · · · about that.
·3· · · · · · ·MR. EDGERTON:· Gerry, it's five o'clock.· We
·4· · · · need a break.
05:00:58 ·5· · · · · · ·MR. KLEIN:· We'll get -- no.· I want to finish
·6· · · · this.
·7· ·Q.· ·Did you tell Tina Abernathy, after Lloyd Silvers
·8· · · · did whatever he did, that you had done something?
·9· ·A.· ·I don't recall any conversations with Tina
05:01:17 10· · · · Abernathy about anything that Lloyd may or may not
11· · · · have done.
12· ·Q.· ·Did Lloyd Silvers tell you he had told Tina
13· · · · Abernathy that he had gone into her personal
14· · · · computer and done something to it?
05:01:34 15· ·A.· ·I don't recall Lloyd Silvers telling me that, no.
16· ·Q.· ·Now, on August 4, 2015, moments after you say
17· · · · "Crack it," Lloyd Silvers says "I need Sam to go to
18· · · · lunch."· Is Sam her roommate?
19· ·A.· ·I don't know who Sam is.
05:01:55 20· ·Q.· ·And you respond "Good call."· Why did you write
21· · · · that?
22· ·A.· ·I don't know.
23· ·Q.· ·Did you wind up buying a new hard drive for Tina?
24· ·A.· ·I recall that there was a problem with her
05:02:14 25· · · · computer.· I think there was, I remember reading

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Testimony That Abernathy’s Computer

Was Working After “Crack It” Is False
From: From~ +13175905755 Steve Dalton 465
Timestamp: 8/ 4/ 2015 7:43:53 PM(UTC+O)

Body:
Crack it. Let's get this done
From: From: lloyd.silvers@grnail.com Lloyd J. Silvers
Source App: iMessage: lloyd.sllvers@gmail.com
Body:
I need Sam to o to lunch
---- --_........._.., __________ ------
Body:
Good call
~~-------~~---------~-------- EXltllllT (,, 5y
w1TNEss: St·lver.!)
DATE.: 4-10 r 11
HUMBE'.R OF PAG£9: I
I.ORI M.cCAftlHY, C9R 8170, RPR.
465
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Tina su~e ~ ~~ every~ts ~ in~~i~; n1f ~~~. ~ icanl PM(UTC~)
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I
Exhibit 544
Abernathy .
3/29/17
Kae Gernandt, CSR #5342
465
Dalton Commits Perjury Regarding

Brush Fires
465
12:23:32 ·1· · · · · · ·MR. KLEIN:· Other than counsel -- are you

·2· · · · really better off with a question that says "other
·3· · · · than counsel," because then it looks like he told
·4· · · · you?
12:23:40 ·5· · · · · · ·MR. HALL:· The question as phrased was did you
·6· · · · tell anybody on the planet.
·7· ·Q.· ·Okay.· Excluding discussions with counsel, here's
·8· · · · my question:· Have you had any discussions with
·9· · · · anyone on the planet regarding putting TRG out of
12:23:57 10· · · · business?
11· ·A.· ·Not to my recollection of anyone on the planet.
12· ·Q.· ·Have you ever discussed with anyone creating brush
13· · · · fires for TRG?
14· · · · · · ·MR. EDGERTON:· Objection.· Vague and ambiguous
12:24:12 15· · · · as to the word, brush fires.
16· ·A.· ·Could you be a little more specific about brush
17· · · · fires, counselor?
18· ·Q.· ·I couldn't.· Have you ever used the term, brush
19· · · · fires, in relationship with TRG?
12:24:28 20· ·A.· ·No.
21· ·Q.· ·Did you have discussions with SAI compliance
22· · · · regarding the recruitment of TRG -- strike that.
23· · · · Did you have any discussions with SAI compliance
24· · · · about recruiting Keating, Mele, or Gigliotti?
12:24:52 25· ·A.· ·As I testified previously, counselor, I said that

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03:16:43 ·1· · · · from my understanding is subject to the privilege.

·2· · · · If you'd like me to explain what my definition of
·3· · · · it is and the context in which it's used, I'd be
·4· · · · happy to do that.
03:16:55 ·5· ·Q.· ·Well, I don't think we've established that you've
·6· · · · ever used the term; so that's the first question.
·7· · · · Have you ever used the term, brush fires, in
·8· · · · connection with TRG?
·9· ·A.· ·I don't believe I said that I ever used it in
03:17:08 10· · · · regard to TRG.
11· · · · · · ·(Exhibit 25 introduced for identification.)
12· ·Q.· ·All right.· Let's take a look at Exhibit 25.
13· ·A.· ·Yes.
14· ·Q.· ·Do you recognize this document?
03:17:38 15· ·A.· ·I'm sorry.· What was the first part?
16· · · · · · ·MR. EDGERTON:· Do you recognize the document.
17· ·Q.· ·Do you recognize this document?
18· ·A.· ·I do.· I produced it.
19· ·Q.· ·And the first entry -- strike that.· Tell me what
03:17:48 20· · · · it is.
21· ·A.· ·Make final decisions on legal team, engage and
22· · · · retain.
23· ·Q.· ·So what is the document?
24· ·A.· ·Oh, it says at the top Legal Task List.
03:18:10 25· ·Q.· ·Where is it from?

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After Getting Caught When Shown

Documents, Dalton Digs A Deeper
Hole
465
03:22:36 ·1· ·A.· ·No.· But it says here it was a question I might
·2· · · · have, and a subjective here but, or it's
·3· · · · subjecture, but it appears to be that that might
·4· · · · have been a question that I posed to them that they
03:22:50 ·5· · · · would need to pose to their attorney.
·6· ·Q.· ·What's CallFire?
·7· ·A.· ·I don't know.
·8· ·Q.· ·So you used it, but you don't know what it is?
·9· ·A.· ·Counselor, I didn't say that I used it.
03:23:04 10· ·Q.· ·Who wrote this?
11· ·A.· ·I did, but that doesn't mean that I wrote it. I
12· · · · also didn't call Shustak, but it's clearly in here
13· · · · in a task list, punch list items that need to be
14· · · · accomplished prior to their transition.· This is
03:23:18 15· · · · not me.
16· ·Q.· ·Well, did you write the next line, saying "Assemble
17· · · · list of potential," quote, "Brush Fire," unquote,
18· · · · "contributors"?
19· ·A.· ·My testimony is I believe I entered all of these
03:23:30 20· · · · data points and these lines into Zoho Projects.
21· ·Q.· ·What was the list of potential brush fire
22· · · · contributors that you were referencing?
23· ·A.· ·Okay.· A little backdrop here.· Brush fires, maybe
24· · · · more specifically transitioning brokers, counselor,
03:23:58 25· · · · is a very complex process where many different

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465
03:24:02 ·1· · · · things have to happen simultaneously.· There's all

·2· · · · kinds of review, coverage at Securities America,
·3· · · · business cards, letterhead, you know, a lot of
·4· · · · things that have to be checked off.· So this is a
03:24:20 ·5· · · · task list.
·6· · · · · · ·I consider to be, each one of those tasks to
·7· · · · be a small fire, and then the fire aggregates in
·8· · · · the successful transition of a broker to a new
·9· · · · broker-dealer.· So you start a fire over here,
03:24:35 10· · · · somebody gets going on the process, and then you
11· · · · move on to the next one.
12· · · · · · ·And a lot of times we refer to it that way
13· · · · because you are putting out fires.· It's crisis to
14· · · · crisis to crisis.· There never seems to be enough
03:24:48 15· · · · time to get everything done.· That is the reason
16· · · · for the reference in that fashion.
17· ·Q.· ·What's a brush fire contributor?
18· ·A.· ·That would be somebody who is contributing to the
19· · · · transition of the advisors successfully to the new
03:25:02 20· · · · broker-dealer, which was from FSC to Securities
21· · · · America.
22· ·Q.· ·The next entity is "Start brush fires."
23· ·A.· ·Right.
24· ·Q.· ·What's that?
03:25:14 25· ·A.· ·That's when you go to all of these individual

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03:25:18 ·1· · · · business units and say, oh, okay, they want
·2· · · · look-and-feel on logo and letterhead.· Let's get
·3· · · · going on business cards.· Let's get going on, you
·4· · · · know, how they're going to brand themselves, if
03:25:31 ·5· · · · that's a discussion.· How were they going to
·6· · · · approach their clients.· How were they going to
·7· · · · resign.
·8· · · · · · ·There's just so many tasks to a successful
·9· · · · transition, that it needs sort of technology to
03:25:45 10· · · · manage it.· Plus, remember that these were advisors
11· · · · in disparate locations, as was I.· So you've got
12· · · · San Diego, New York, Indiana.· We used the
13· · · · technology and leveraged it to successfully
14· · · · transition.
03:26:01 15· ·Q.· ·Well, I interpreted it a little differently, and
16· · · · you just tell me if my interpretation is wrong.
17· · · · When I read "Start brush fires," I thought that was
18· · · · start problems and create problems for TRG.
19· · · · · · ·MR. EDGERTON:· Objection.· Argumentative.
03:26:17 20· · · · Lacks foundation.· I'm sorry if I cut you off. I
21· · · · thought you were done.
22· ·A.· ·I didn't hear your question.
23· ·Q.· ·Let me try it again, and pause for a second because
24· · · · I think I'm still going to get an objection.
03:26:30 25· · · · · · ·Is it true that when you wrote "Start brush

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465
03:26:33 ·1· · · · fires," what you really were trying to say was
·2· · · · create problems for TRG?
·3· ·A.· ·No.· I didn't create problems for TRG, counselor.
·4· · · · TRG created its own problems.
03:26:47 ·5· ·Q.· ·Did "Start brush fires" include making reports to
·6· · · · FINRA and the SEC?
·7· ·A.· ·No.
·8· · · · · · ·(Exhibit 44 introduced for identification.)
·9· ·Q.· ·Take a look at Exhibit 44.
03:27:07 10· ·A.· ·I'm sorry?
11· ·Q.· ·Take a look at Exhibit 44.· Have you seen Exhibit
12· · · · 44?
13· ·A.· ·Well, to the extent that it looks to be an email
14· · · · generated from me, I would say yes.
03:27:49 15· ·Q.· ·Do you remember writing it?
16· ·A.· ·I don't.
17· ·Q.· ·Now, this is an email from you to John Davenport;
18· · · · right?
19· ·A.· ·The top part is, yes.
03:28:03 20· ·Q.· ·And John Davenport is a lawyer; right?
21· ·A.· ·He is.
22· ·Q.· ·And you were giving him advice as to the issues
23· · · · that he was creating, given the fact litigation was
24· · · · pending; right?
03:28:15 25· ·A.· ·I'm a compliance expert, and John is not, so I'm

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465
Dalton Lied About The Purpose Of His

25 Point Plan
465
10:30:04 ·1· · · · Klein & Wilson, and Paul Reynolds is at the Shustak
·2· · · · firm?
·3· · · · · · ·MR. REYNOLDS:· Yes.
·4· · · · · · ·THE VIDEOGRAPHER:· Will our court reporter
10:30:15 ·5· · · · please swear in the witness.
·6· · · · · · ·STEVE DALTON, the witness herein, having been
·7· · · · first duly sworn to tell the truth, the whole
·8· · · · truth, and nothing but the truth, testified as
·9· · · · follows:
10:30:23 10· · EXAMINATION,
11· · · · QUESTIONS BY MR. KLEIN:
12· ·Q.· ·Mr. Dalton, what is the 25 point plan?
13· ·A.· ·I'm not really familiar, Mr. Klein, with the 25
14· · · · point plan.· I know there was a 25 point document
10:30:42 15· · · · that was circulated, but I wouldn't refer to it as
16· · · · a 25 point plan.
17· ·Q.· ·How would you refer to it?
18· ·A.· ·I would refer to it as a list that was largely put
19· · · · together by myself, that was sort of a running list
10:31:02 20· · · · of things that I came into, information through
21· · · · various sources of items that in my opinion and my
22· · · · experience were violations promulgated either by
23· · · · TRG or Mr. Jastremski.
24· ·Q.· ·What was the purpose of that list?
10:31:21 25· ·A.· ·It didn't have a purpose, Mr. Klein.

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465
10:40:24 ·1· · · · regulatory bodies, meaning that he did not discuss

·2· · · · the whole list.· So if you're asking the question
·3· · · · as a whole package, then that's your question.· He
·4· · · · has to understand that.
10:40:34 ·5· · · · · · ·MR. KLEIN:· I'm going to rephrase.
·6· · · · · · ·MR. EDGERTON:· Okay.
·7· ·Q.· ·With which regulators did you discuss elements of
·8· · · · the list?
·9· ·A.· ·FINRA and the Securities and Exchange Commission.
10:40:49 10· ·Q.· ·What was your purpose in discussing the elements of
11· · · · the list with FINRA and the Securities and Exchange
12· · · · Commission?
13· ·A.· ·The list, as it grew, it became more and more
14· · · · apparent that there was a very substantial number
10:41:08 15· · · · of significant rule violations.· And candidly,
16· · · · counselor, I felt like I had an obligation to turn
17· · · · that information over to, you know, people in
18· · · · charge of safekeeping the rules, regulations in the
19· · · · industry.· There's violations promulgated by FINRA
10:41:27 20· · · · as well as the SEC, and I felt an obligation, not
21· · · · just a moral but an ethical violation, to report
22· · · · that.
23· ·Q.· ·So based on moral and ethical obligations, you made
24· · · · reports to FINRA and SEC about elements of that
10:41:43 25· · · · list; is that correct?

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465
Mike Explains Purpose Of The Brush

Fire Campaign Is To Destroy TRG
Michael
04/25/19 PageID.34296 Page 400 of
June
465 14, 2017
·1· writing or texts.· We always bcc'd everyone in e-mails
·2· as much as possible.· Lloyd Silvers invited me into a
·3· call with attorneys.
·4· · · Q.· ·Let's drop down to number 19.· Could you read
·5· that, please?
·6· · · A.· ·Steve Dalton developed a 25 point brush fire
·7· campaign.· We had to bring TRG down, or I put had to
·8· bring TRG down.
·9· · · Q.· ·And is that something that Steve Dalton said in
10· connection with his brush fire campaign?
11· · · A.· ·We were all on a conference call where that was
12· said.
13· · · Q.· ·And did he ever tell you that the only reason
14· he used the term brush fire, this was just a term he
15· used as a to-do list to bring over registered
16· representatives and it had nothing to do with causing
17· heartburn for TRG?
18· · · A.· ·My --
19· · · · · ·MR. HALL:· Objection.· Argumentative.
20· · · · · ·THE WITNESS:· Sorry.· Should I answer?
21· · · · · ·MR. REYNOLDS:· Yes.
22· · · · · ·THE WITNESS:· Okay.· My understanding of the 25
23· · · point brush fire campaign was to create so much pain
24· · · on TRG while we were extracting their reps through
25· · · sending in FINRA, the SEC, the labor board, filing

(619) 573-4883 YVer1f
Michael
04/25/19 PageID.34297 Page 401 of
June
465 14, 2017
·1· · · multiple complaints for, you know, internal
·2· · · employees that he was upside down and couldn't --
·3· · · couldn't handle everything at once.
·4· · · Q.· ·(By Mr. Klein)· Could you move to 22 and tell
·5· me what that says?
·6· · · A.· ·Steve Dalton, John Davenport, Lloyd Silvers,
·7· Jeremy Keating and Rich Gigliotti, Alex Mele were
·8· calling current and past employers of TRG in an effort
·9· to create complaints and a class action lawsuit,
10· including labor board, SEC, FINRA, etcetera.
11· · · Q.· ·How do you know that happened?
12· · · A.· ·Well, there was a list earlier, for one.· For
13· two, you know, I contract -- recruit for John and he
14· told me, you know, I've got -- I've got these guys in
15· here every day.· I've got this entity in here every day.
16· These guys are climbing up my tree.· You know, they're
17· in here auditing me.
18· · · · · ·And then also, you know, I heard it from Lloyd,
19· in my conversations with Lloyd as well.
20· · · Q.· ·So Lloyd told you that these people were
21· calling in order to try and get a class action lawsuit?
22· · · A.· ·Yeah.· That was the -- that was the plan, to
23· get enough employees together to file a class action
24· lawsuit.
25· · · Q.· ·And did Lloyd also tell you -- well, strike

(619) 573-4883 YVer1f
465
Davenport Confirms Dalton Was Going

To File Anonymous Complaints With
Regulatory Bodies
John Filed
04/25/19 PageID.34299 Page 403 of
June
465 16, 2017
·1· · · · · · ·A.· · I think it was a mistake, not
·2· · · · necessarily done intentionally.
·3· · · · · · ·Q.· · Perhaps, perhaps not?
·4· · · · · · · · · ·MR. KLEIN:· Calls for opinion.
·5· · · · · · ·Q.· · I have a couple of documents to
·6· · · · mark.· Actually, let's go on to fourteen.
·7· · · · These are all kind of related.
·8· · · · · · · · · ·MR. EDGERTON:· Can I ask a
·9· · · · · · ·question about that?
10· · · · · · · · · ·MR. REYNOLDS:· Well, let me kind
11· · · · · · ·of just cover this topic about the
12· · · · · · ·brush fires and all that, Twenty-Five
13· · · · · · ·Point.
14· · · · · · ·Q.· · Fourteen.
15· · · · · · · · · ·"Dalton said he would file
16· · · · numerous complaints with FINRA and try to
17· · · · cause FINRA to investigate TRG."
18· · · · · · · · · ·Do you know if Dalton filed a
19· · · · complaint with FINRA?
20· · · · · · ·A.· · To the best of my knowledge, yes.
21· · · · · · ·Q.· · Do you know if anybody else filed
22· · · · a complaint with FINRA?
23· · · · · · ·A.· · Not to my knowledge.
24· · · · · · ·Q.· · Do you know if Dalton filed a
25· · · · complaint anonymously or under his own name?

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June
465 16, 2017
·1· · · · · · ·A.· · My understanding was that he was
·2· · · · going to file it anonymously.
·3· · · · · · ·Q.· · But you don't know?
·4· · · · · · ·A.· · But I don't know.
·5· · · · · · ·Q.· · Do you know if Mr. Dalton or
·6· · · · anyone else filed a complaint with the SEC
·7· · · · against the retirement group?
·8· · · · · · ·A.· · I don't know.
·9· · · · · · ·Q.· · Was there a discussion of what --
10· · · · other than this U Five issue -- of what the
11· · · · twenty-five points were?
12· · · · · · ·A.· · There were discussions of the
13· · · · twenty-five point memo on some of our
14· · · · conference calls, we did not go through it
15· · · · line by line or point by point, but there
16· · · · was a general discussion on a few of those
17· · · · particular items.· Particularly spear headed
18· · · · by Mr. Dalton, Steve Dalton.
19· · · · · · ·Q.· · This was a memorandum, correct,
20· · · · that was prepared?
21· · · · · · ·A.· · Correct.
22· · · · · · ·Q.· · It was prepared to your
23· · · · understanding by Mr. Dalton?
24· · · · · · ·A.· · I know that for a fact.
25· · · · · · ·Q.· · Because he told you so?

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465 16, 2017
·1· · · · · · ·A.· · Yes.
·2· · · · · · ·Q.· · Basically he was circulating and
·3· · · · asking for input?
·4· · · · · · ·A.· · More he was looking at hey guys,
·5· · · · look what I have on this guy.
·6· · · · · · ·Q.· · And what was your take away from
·7· · · · that?
·8· · · · · · ·A.· · There seemed to be a certain lot
·9· · · · of items there that if valid could be a
10· · · · serious problem.
11· · · · · · ·Q.· · And did you at the time believe
12· · · · any of the issues were not valid?
13· · · · · · ·A.· · I had no reason to believe either
14· · · · they were valid or not.
15· · · · · · ·Q.· · Fair enough.
16· · · · · · · · · ·MR. REYNOLDS:· I'm going to mark
17· · · · · · ·this as 824 Bates number 44.
18· · · · · · · · · (Whereupon, a document was marked
19· · · · · · ·as Joint Exhibit 824 for
20· · · · · · ·identification, as of this date.)
21· · · · · · ·Q.· · I'll give you a second to look at
22· · · · that.· Let me know when you're ready.
23· · · · · · ·A.· · Okay.
24· · · · · · ·Q.· · So what is this, sir?
25· · · · · · ·A.· · This was in response to some

(619) 573-4883 YVer1f
465
Dalton Lies About Saying TRG’s Lawsuit

Was Just The “Cost Of Doing Business”
465
04:10:42 ·1· · · · counselor?

·2· ·Q.· ·Before you get to 596, let me ask you something.
·3· · · · You did expect you were going to get sued when
·4· · · · Keating, Mele, and Gigliotti left; right?
04:11:05 ·5· ·A.· ·I'm sorry.· What was the question again? I
·6· · · · couldn't hear it.
·7· ·Q.· ·Did you expect that at some point you were going to
·8· · · · be sued when Keating, Gigliotti, and Mele left?
·9· · · · · · ·MR. EDGERTON:· Objection.· Asked and answered.
04:11:19 10· ·Q.· ·I didn't hear it.
11· ·A.· ·You asked me that question this morning, and I told
12· · · · you, no, I did not expect to get sued.
13· ·Q.· ·Did you expect Securities America was also going to
14· · · · get sued?
04:11:30 15· ·A.· ·I never imagined Securities America would get sued.
16· ·Q.· ·Did you believe that litigation was just a cost of
17· · · · doing business?
18· ·A.· ·What?
19· · · · · · ·MR. EDGERTON:· Objection.· Argumentative.
04:11:40 20· · · · Lacks foundation.
21· ·Q.· ·Let me rephrase it.· Did you believe that if you
22· · · · got sued, that was just a cost of doing business?
23· · · · · · ·MR. EDGERTON:· That if he personally got sued?
24· · · · · · ·MR. KLEIN:· Yes.
04:11:50 25· · · · · · ·MR. EDGERTON:· Well, objection.· Incomplete

YVer1f
465
04:11:52 ·1· · · · hypothetical.· He's already testified he didn't

·2· · · · think he would be sued.· But go ahead and answer.
·3· ·Q.· ·You can answer.
·4· ·A.· ·If I was sued here inappropriately, no, I wouldn't
04:12:02 ·5· · · · consider that to be the cost of business.· I'd
·6· · · · consider it to be spurious litigation.
·7· ·Q.· ·Let's take a look at Exhibit 596.· Take a moment to
·8· · · · read it and tell me when you're done.
·9· · · · · · ·MR. EDGERTON:· Again, I just note for the
04:12:53 10· · · · record this document, 596, has no Bates stamp.
11· ·Q.· ·Ready?
12· ·A.· ·Yes, read.
13· ·Q.· ·All right.· So let's take a look.· If we go five
14· · · · texts down, full texts, there is one dated
04:13:22 15· · · · April 21, 2014, at 5:14:40.· Is that a text that
16· · · · you wrote?
17· ·A.· ·I don't recall writing it.
18· ·Q.· ·According to the text it says "Just spoke with my
19· · · · lawyer regarding the TRG contract and Jeremy.· He
04:13:45 20· · · · says it's got a few holes but, at the end of the
21· · · · day, it's likely to be a fight.· Especially since
22· · · · it's John."· Does this refresh your recollection
23· · · · that you wrote this?
24· ·A.· ·No, it doesn't refresh my recollection.
04:14:02 25· ·Q.· ·Did you have such a discussion with a lawyer where

YVer1f
465
04:14:05 ·1· · · · he told you that it's got a few holes, but it will
·2· · · · be a fight?
·3· · · · · · ·MR. HALL:· Object to the extent it calls for
·4· · · · attorney-client privilege.· Instruct the witness
04:14:14 ·5· · · · not to answer.
·6· · · · · · ·MR. KLEIN:· Yeah, but he's given this to
·7· · · · Silvers.· It's a waiver.
·8· · · · · · ·MR. HALL:· I don't think it is unless you
·9· · · · establish a foundation.
04:14:23 10· · · · · · ·MR. KLEIN:· I will honor that.
11· · · · · · ·MR. EDGERTON:· Aren't they represented by the
12· · · · same counsel?
13· · · · · · ·MR. KLEIN:· That doesn't matter at all.
14· ·Q.· ·Let me just ask this:· Did you send this to Lloyd
04:14:43 15· · · · Silvers, if you know?
16· ·A.· ·I'm sorry.· I didn't hear the question.
17· ·Q.· ·Was that text sent to Lloyd Silvers?
18· ·A.· ·I told you I don't recall sending it.· It appears,
19· · · · if you take it on its face, that it was written to
04:14:55 20· · · · Lloyd Silvers, yes.· It appears as though it was.
21· ·Q.· ·Okay.· And I will honor, because you can't testify
22· · · · to that affirmatively, I'm going to defer to
23· · · · Mr. Hall on that.
24· · · · · · ·The next text from you, it says "FINRA doesn't
04:15:18 25· · · · like to get involved in pissing matches over

YVer1f
465
04:15:21 ·1· · · · clients."· Is that something you believe even

·2· · · · today?
·3· ·A.· ·Yes.
·4· ·Q.· ·Supposedly you wrote "Business wise, Jeremy is
04:15:33 ·5· · · · going to get sued no matter what.· Likely me and SA
·6· · · · as well."· Did you write that?
·7· ·A.· ·I don't recall writing it.
·8· ·Q.· ·Was that your opinion or belief as of April 21,
·9· · · · 2014?
04:15:49 10· ·A.· ·As I sit here today, counselor, I can very clearly
11· · · · recall thinking there's a very low likelihood that
12· · · · I would personally be sued.· I knew that there was
13· · · · a potential that Ardent would be, if the advisors
14· · · · came and worked with Ardent.· But as I sit here
04:16:10 15· · · · today, I'm still surprised that I've been named.
16· ·Q.· ·So when it says "Likely me and SA as well," that
17· · · · would lead you to conclude that this document must
18· · · · be false, because you would not have said that?
19· · · · · · ·MR. HALL:· Objection.· Argumentative.
04:16:28 20· · · · · · ·MR. EDGERTON:· Join.
21· ·A.· ·It might have been how I felt at the moment on that
22· · · · day, if I sent this.
23· · · · · · ·MR. EDGERTON:· Objection.· Calls for
24· · · · speculation.
04:16:36 25· ·Q.· ·Then you write another text -- at least this

YVer1f
465
04:16:40 ·1· · · · document says you did -- on April 21, 2014, right
·2· · · · after that, where you say "Cost of doing business."
·3· · · · Do you know if that was referencing getting sued?
·4· ·A.· ·I don't.
04:16:54 ·5· ·Q.· ·Did you ever view the possibility that you might be
·6· · · · sued by John Jastremski in this action as just a
·7· · · · cost of doing business?
·8· ·A.· ·As I said before, I didn't anticipate being sued,
·9· · · · so I wouldn't have considered it to be a cost of
04:17:07 10· · · · doing business.· I didn't consider it to be
11· · · · plausible.
12· ·Q.· ·Looking at that text that says "Cost of doing
13· · · · business," does that cause you to conclude that
14· · · · this document must be a false document, because you
04:17:19 15· · · · would not have said that?
16· ·A.· ·Not necessarily.
17· ·Q.· ·I'm sorry.· I didn't hear your answer.
18· ·A.· ·Not necessarily.
19· ·Q.· ·Can you think of why you would have said that, if
04:17:32 20· · · · it were not how you viewed life on April 21, 2014?
21· · · · · · ·MR. HALL:· Objection.· Argumentative.
22· · · · · · ·MR. EDGERTON:· Join.
23· ·A.· ·I already explained to you, counselor, that I might
24· · · · have in the moment considered it to be the cost of
04:17:46 25· · · · doing business.· Candidly, I have a much better

YVer1f
465
From: From: +13175905755 Steve Dalton
Body:
Just spoke with my lawyer regarding the TRG contract ~nd Jeremy, He says it's got a few holes but, at the
end of the day, it's likely to be a fight. Especially since it's John.
'
Body:
FINRA doesn't like to get involved in pissing matches over clients. Business wise, Jeremy is going to get sued
no matter what. Likely me and SA as well,

Body:
Cost of doing business.
EXHIBIT . 19 k
WITNESS: s, IVe.rs
4-to ,,1
NUMBER OF PAGES :-..\_ _
LORI MCC:ARl'HY, CSR 8170, RPR

465
Dalton Lies About X,Y,Z

465
04:46:49 ·1· · · · authenticated it.· I know that, you know, it

·2· · · · appears to be his document, but it's not really
·3· · · · been established.
·4· · · · · · ·MR. KLEIN:· He can say he doesn't know.
04:46:58 ·5· ·A.· ·I don't know.
·6· ·Q.· ·Silvers writes "X and Y are meeting right now with
·7· · · · one of them...Z is in New York."· Does this refresh
·8· · · · your recollection as to who's being referenced
·9· · · · here?
04:47:11 10· ·A.· ·Not, not really.· It doesn't refresh my
11· · · · recollection.· I can make presumptions, but I'm not
12· · · · here to speculate.
13· · · · · · ·MR. EDGERTON:· That's right.· So just say that
14· · · · you just don't know.
04:47:21 15· ·Q.· ·Dropping down a couple, it says "It's just Reese
16· · · · and McKay."· Are they part of the Texas group you
17· · · · were recruiting?
18· ·A.· ·They are in Texas, and I did recruit them.
19· ·Q.· ·So looking at that, does this refresh your
04:47:37 20· · · · recollection that these email exchanges were email
21· · · · exchanges you engaged in?
22· ·A.· ·I mean, it appears to track back up, given the fact
23· · · · that they were all in the same day, that it would
24· · · · be the Texas group in Dallas.
04:48:01 25· ·Q.· ·Did they have any connection to TRG?

YVer1f
465
04:50:11 ·1· ·Q.· ·The first text message.

·2· ·A.· ·Yes.
·3· ·Q.· ·Dated December 28, 2014, Mr. Silvers writes, "By
·4· · · · the way, I don't think that Y should be talking to
04:50:23 ·5· · · · MR at all at this juncture."· Do you know who MR
·6· · · · is?
·7· ·A.· ·No.
·8· ·Q.· ·It goes on to say "They should be incommunicado,
·9· · · · 'Plausible deniability.'" Do you know what was
04:50:40 10· · · · being referenced?
11· ·A.· ·No.
12· ·Q.· ·Did you have discussions with Silvers about trying
13· · · · to put distance between you and Silvers on the one
14· · · · side, and Texas guys on the other, and perhaps,
04:50:57 15· · · · Keating, Mele, and Gigliotti on a third side?
16· ·A.· ·I don't remember having those conversations. I
17· · · · recruited the group from Dallas.
18· ·Q.· ·I hated the question, so let me try it again.
19· · · · Referencing plausible deniability, do you remember
04:51:15 20· · · · having discussions with Silvers that Keating,
21· · · · Gigliotti, and Mele shouldn't be involved in how
22· · · · you wound up recruiting the Texas group?
23· ·A.· ·No.
24· ·Q.· ·Now, in August of 2015, isn't it true you knew you
04:51:41 25· · · · were going to fire Tina Abernathy?

YVer1f
465
05:34:12 ·1· · · · message, Lloyd Silvers writes, and I think it's to

·2· · · · you, "I spoke with Z...XY and Z are doing a call
·3· · · · together at 5...you can take the rest of the night
·4· · · · off and we can talk tomorrow."· And this happened
05:34:30 ·5· · · · on November 25, 2014.· Does this refresh your
·6· · · · recollection that Mele, Gigliotti, and Keating were
·7· · · · referred to as X, Y and Z?
·8· ·A.· ·First of all, counselor, maybe you can edify me
·9· · · · here.· It says From:· Lloyd, Source App: Lloyd.· It
05:34:47 10· · · · doesn't say that it was to me.· Am I missing
11· · · · something that says it was to me, other than the
12· · · · fact that the next text message is from me?
13· ·Q.· ·That's how I got there.
14· ·A.· ·Okay.· Then it certainly fits in the time frame
05:35:04 15· · · · that X, Y, and Z could be Keating, Gigliotti and
16· · · · Mele.· Am I going to say definitively?· No, but it
17· · · · certainly would fit.
18· ·Q.· ·Did you ever ask Lloyd Silvers, why are you
19· · · · referring to these guys as X, Y and Z?· Why don't
05:35:27 20· · · · you use their names?
21· ·A.· ·No, I don't remember having a conversation about
22· · · · that.
23· ·Q.· ·All right.· Dropping to the bottom, Lloyd Silvers
24· · · · writes "Compliance, transition, and maybe legal...I
05:35:38 25· · · · don't know how I feel about the legal, feel free to

YVer1f
465
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465
CONFIDENTIAL
Timestamp: 12/28/20141:35:00 AM(UTC+O)
Source App: iMessage: lloyd,silvers@gmail.com
Body: ~
By the way, I don't thin~ that Yshould be talijng to MR at all at this juncture, They should be
11 11
incommunicado, Plausible deniabili~ ,
EXHIBIT &le&
WJTNE9S: ~f'\ v~r-s
DATE: Y-t0 - l1
NUMBER OF PAGEB: _ _ t_
LORI MCCARTHY, C9R G 170, RPR
~~-----M--------------------- 465
file:///C/Users/Admin/Desktop/Lloyd%20Text%20Docs/chat•94.txt[J/29/2017 12:01: 13 PM)

TRGMGK609938
CONFIDENTIAL
Timestamp: 11/11/2014 3:24:48 AM(UTC+O)
Source App: iMessage: lloyd.silvers@gmaiLcom
Body:
Bizarre. Aren't x and y gambling talking to them?
EXHIBIT (o \2,,
WITNESS : ~d vws
DATE:: Y-10 -~11
NUMBER OF PAGES! :z..
LORI MC:CAA'tHY, CSR 8170, RPR
465
Body:
Z sa s that sounds ood

Timestamp: 11/21/2014 2:01:36 AM(UTC+0)
Source App: iMessage: lloyd. siJvers@gmail.com
Body:
All will be in the office though

Body:
X is open, that's what matters...Y is still needing to confirm

Timestamp: 11/21/2014 2:01:36 AM(UTC+0)
Body:
So x&y are gocxl at that time or do they need to confirm? EXHIBIT
1n
i 7 33
~ltz,n 4. 2c, ,1,
465
-~--------------~------------
From: From: lloyd.silvers@gmail.comLloyd J. Silvers 1

1
Source AQp: iMessage: llo~d.silvers@gmaill.com

Body:' - - - - - - -
Xtext me that his sister just had a bab~
-----------------------------
729
465

Timestamp: 12/3/201412:40:32 AM(UTC+O)
Bod¥:
From X
EXHIBIT ~ 10
w1TNEss: ~ , .. I ve.r$
DATE:: 4-,n -·l 7
NUMBER OF PAOES:
--i
Loit1 McC,UnHY, CSR 8170, ff PR
465
Dalton Threatens Davenport After

Seeing Declaration
John Filed
04/25/19 PageID.34320 Page 424 of
June
465 16, 2017
·1· · · · criteria.· We were trying to get performance
·2· · · · criteria to keep these guys on track.
·3· · · · · · ·Q.· · Take a look at Exhibit 44?
·4· · · · · · ·A.· · I have it in front of me.
·5· · · · · · ·Q.· · Did you receive this E-mail from
·6· · · · Steve Dalton?
·7· · · · · · ·A.· · Yes.
·8· · · · · · ·Q.· · Did you ever discuss it with
·9· · · · Steve Dalton?
10· · · · · · ·A.· · I don't believe we ever discussed
11· · · · it.
12· · · · · · ·Q.· · Now, did Steve Dalton ever
13· · · · threaten you?
14· · · · · · ·A.· · Yes.
15· · · · · · ·Q.· · When?
16· · · · · · ·A.· · After I signed my declaration so
17· · · · it would have been probably sometime after
18· · · · November of 2016.
19· · · · · · ·Q.· · When is the first time that he
20· · · · issued a threat to you?
21· · · · · · ·A.· · It was in a text message.· He
22· · · · would call me, I did not pick up his calls,
23· · · · and so he threatened to sue me if I did not
24· · · · pick up his calls.
25· · · · · · ·Q.· · Did he issue a second threat to

(619) 573-4883 YVer1f
John Filed
04/25/19 PageID.34321 Page 425 of
June
465 16, 2017
·1· · · · you at any time?
·2· · · · · · ·A.· · Yes, he did.· There were several
·3· · · · text messages from the beginning of 2017 on
·4· · · · that talked about you'll be very sorry if
·5· · · · you don't pick up my phone call and tell me
·6· · · · exactly what you said to John Jastremski.
·7· · · · · · ·Q.· · Did he threaten you with anything
·8· · · · other than a lawsuit?
·9· · · · · · ·A.· · No.
10· · · · · · ·Q.· · Did he ever suggest to you that
11· · · · you wouldn't work in the securities industry
12· · · · again?
13· · · · · · ·A.· · He did say at one point that if I
14· · · · did not cooperate and provide information
15· · · · that I gave to John Jastremski to him that
16· · · · he would do whatever he could to destroy my
17· · · · career.
18· · · · · · ·Q.· · Did you and Mr. Sullivan at some
19· · · · point part ways?
20· · · · · · ·A.· · Yes, we did.
21· · · · · · ·Q.· · How did that come about?
22· · · · · · ·A.· · Mr. Sullivan it was discovered
23· · · · when we were moving to our new broker dealer
24· · · · that Mr. Sullivan, while at Securities
25· · · · America had actually stolen commissions from

(619) 573-4883 YVer1f
465
D4 Debacle
• The Keating Group and Ardent supposedly
provided their full prospect lists to D4
• Jastremski compared the D4 matches against
the Silvers lists
• Jastremski found that approximately 2,200
common prospects were not provided to D4
by the Keating Group and Ardent
• Silvers said D4 made the mistake
465
Silvers Creates Cara.ann.morrison

Email. Silvers Then Lies About
Whether It Was Used. No Emails
Produced From This Address
465
·1· file cabinets?

·2· · · ·A· ·I didn't really take a look.
·3· · · ·Q· ·Were there customer files?
·4· · · ·A· ·Again, I never really took a look.
11:45 ·5· · · ·Q· ·Did you ever hear of the e-mail address
·6· cara.ann.morrison@gmail.com?
·7· · · ·A· ·Yes.
·8· · · ·Q· ·When did you first hear of that?
·9· · · ·A· ·When I made it.
11:45 10· · · ·Q· ·Why did you make it?
11· · · ·A· ·I don't recall the actual reason for it,
12· but, yes, I made that.
13· · · ·Q· ·Who's Cara Ann Morrison?
14· · · ·A· ·She's a friend of mine.
11:45 15· · · ·Q· ·And why did you decide to create a gmail
16· account with her name on it?
17· · · ·A· ·Again, I don't recall the actual -- what
18· the -- what it was behind it, but, yeah.
19· · · ·Q· ·What were you using it for?
11:46 20· · · ·A· ·To be honest, I just created it.
21· · · ·Q· ·Just for fun?
22· · · ·A· ·No.· It was supposed to be shared, but I --
23· again, I don't think anybody ever used it for
24· anything.
11:46 25· · · ·Q· ·Shared by whom?

(714) 838-9119
Silvers 137:5 - 138:21
YVer1f
465
·1· · · ·A· ·Whoever I had spoken with --

·2· · · ·Q· ·Who?
·3· · · ·A· ·-- about it.
·4· · · ·Q· ·Who?
11:46 ·5· · · ·A· ·I don't recall who exactly it was that I
·6· would have set it up for.
·7· · · ·Q· ·How about Keating, Mele and Gigliotti, any
·8· of them?
·9· · · ·A· ·Again, it very well could have been, but I'm
11:46 10· not positive.
11· · · ·Q· ·When did you set it up?
12· · · ·A· ·Again, I don't -- I do not recall at all.
13· · · ·Q· ·What did you discuss with them about why you
14· were setting up a Cara Ann Morrison gmail account?
11:46 15· · · ·A· ·Again, I don't recall the actual
16· conversation.· During this lawsuit is when I
17· remembered that that was even there and available.
18· · · ·Q· ·Do you remember any discussions you had with
19· any of the three of them about why you were setting
11:47 20· up a Cara Ann Morrison account?
21· · · ·A· ·I don't.· I don't.
22· · · ·Q· ·Did you ever discuss the Cara Ann Morrison
23· account with Steve Dalton?
24· · · ·A· ·I don't recall with Steve Dalton.
11:47 25· · · ·Q· ·You ever hear of an e-mail address

(714) 838-9119
Silvers 137:5 - 138:21
YVer1f
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Silvers Carries Out Dalton’s Instruction

To “Crack” Abernathy’s Computer, And
Then Lies About It
465
·1· it.
·2· · · ·Q· ·And do you remember, before she left, having
·3· a communication with Steve Dalton where the two of
·4· you discussed destroying her laptop?
17:02 ·5· · · ·A· ·I don't recall that.
·7· BY MR. KLEIN:
·8· · · ·Q· ·Okay.· Let's take a look at Exhibit 654.
·9· · · · · ·MR. HALL:· Is this just one page?
17:02 10· · · · · ·MR. KLEIN:· Yeah.
11· BY MR. KLEIN:
12· · · ·Q· ·There's an e-mail or a communication of some
13· sort on top dated August 4, 2015 where you write to
14· Mr. Dalton, "I think her laptop is here."
17:02 15· · · · · ·Why'd you write that?
16· · · ·A· ·Most likely because I needed to look to see
17· if there was personal information on there.
18· · · ·Q· ·Dalton responds, a couple minutes later,
19· saying, "Lap dance or laptop," and you respond "Top";
17:03 20· right?
21· · · ·A· ·Yes.
22· · · ·Q· ·And then on August 4, 2015, at 7:43, Steve
23· Dalton says, "Crack it.· Let's get this done."
24· · · · · ·What was being referenced?
17:03 25· · · ·A· ·In that context, I don't know exactly what

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·1· he would have been referencing.

·2· · · ·Q· ·Was it burn out her computer?
·3· · · ·A· ·I don't believe so.
·4· · · ·Q· ·You respond, a minute later, "I need Sam to
17:03 ·5· go to lunch."
·6· · · ·A· ·Yes.
·7· · · ·Q· ·Why?
·8· · · ·A· ·Because I -- Tina had her personal computer
·9· that she had used, and, again, just wanted to make
17:03 10· sure there weren't private client information on
11· there.
12· · · ·Q· ·What were you cracking?
13· · · ·A· ·I wasn't cracking anything.
14· · · ·Q· ·When he said "Crack it," what did you think
17:04 15· he meant?
16· · · ·A· ·You'd have to ask him as to what that
17· exactly means.
18· · · ·Q· ·Did you say, "Well, what do you mean 'crack
19· it'"?
17:04 20· · · ·A· ·No.
21· · · ·Q· ·You knew exactly what he meant, didn't you?
22· · · ·A· ·I went and looked at the computer.
23· · · ·Q· ·And after you said that you were going to
24· have Sam go to lunch, he responded, "Good call."
17:04 25· · · · · ·Do you see that?

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·1· · · ·A· ·"Good call" to wait for Sam to go to lunch?

·2· · · ·Q· ·Yeah.
·3· · · ·A· ·Okay.
17:04 ·5· BY MR. KLEIN:
·6· · · ·Q· ·Now, did Tina tell you that she wanted a new
·7· hard drive?
·8· · · · · ·MR. HALL:· This is 656?
·9· · · · · ·MR. KLEIN:· This is 656.
17:05 10· BY MR. KLEIN:
11· · · ·Q· ·I'm going to draw your attention --
12· · · ·A· ·Right.
13· · · ·Q· ·-- to the entry on August 10, 2015 at 11:50.
14· · · · · ·Dalton writes, "So Tina lives to fight
17:05 15· another day.· Tomorrow will be her last."
16· · · · · ·Do you see that?
17· · · ·A· ·Yeah.
18· · · ·Q· ·And you responded, "She's going to hit you
19· up for a new hard drive."
17:05 20· · · · · ·Why did you feel you had to pay for a hard
21· drive?
22· · · ·A· ·I think she had -- this probably would have
23· been by the time she'd already said something.
24· · · ·Q· ·Did you tell her what happened to her hard
17:05 25· drive?

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Silvers And Dalton Replace Abernathy’s

Hard Drive, But Falsely Claim They Do
Not Know How It Was Destroyed
465
·1· · · ·A· ·"Good call" to wait for Sam to go to lunch?

·2· · · ·Q· ·Yeah.
·3· · · ·A· ·Okay.
17:04 ·5· BY MR. KLEIN:
·6· · · ·Q· ·Now, did Tina tell you that she wanted a new
·7· hard drive?
·8· · · · · ·MR. HALL:· This is 656?
·9· · · · · ·MR. KLEIN:· This is 656.
17:05 10· BY MR. KLEIN:
11· · · ·Q· ·I'm going to draw your attention --
12· · · ·A· ·Right.
13· · · ·Q· ·-- to the entry on August 10, 2015 at 11:50.
14· · · · · ·Dalton writes, "So Tina lives to fight
17:05 15· another day.· Tomorrow will be her last."
16· · · · · ·Do you see that?
17· · · ·A· ·Yeah.
18· · · ·Q· ·And you responded, "She's going to hit you
19· up for a new hard drive."
17:05 20· · · · · ·Why did you feel you had to pay for a hard
21· drive?
22· · · ·A· ·I think she had -- this probably would have
23· been by the time she'd already said something.
24· · · ·Q· ·Did you tell her what happened to her hard
17:05 25· drive?

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·1· · · ·A· ·I don't -- I don't recall that I know what

·2· happened to the hard drive.
·3· · · ·Q· ·Now, on August 10 at 11:51, you said, "I
·4· told Nelson to get her up and running with the new
17:06 ·5· operating system first thing."
·6· · · · · ·Why'd you do that?
·7· · · ·A· ·'Cause if her computer wasn't working, I
·8· wanted him to get it working.
·9· · · ·Q· ·How did it come about that it wasn't
17:06 10· working?
11· · · ·A· ·Again, I don't recall what the circumstances
12· were behind what had happened.
13· · · ·Q· ·Dropping down to August 10, 2015 at 11:57,
14· Steve Dalton writes, "Hmmmm, if that's what we have
17:06 15· to do, let's do it, but from my perspective he
16· probably diagnosed her computer based on the fact
17· that it had failed, and he doesn't know the
18· circumstances behind it."
19· · · · · ·What were the circumstances behind it?
17:07 20· · · ·A· ·Again, I don't know.· When it comes to stuff
21· like this, I mean, this is well above my pay grade as
22· far as IT and technology stuff goes.
23· · · ·Q· ·Now, at some point, did you and Dalton refer
24· to Mele, Gigliotti and Keating as "X, Y and Z"?
17:07 25· · · ·A· ·We may have.

(714) 838-9119
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YVer1f
465
Davenport Confirms Dalton Instructed

Silvers To Destroy Computers And
Documents
465
John Davenport
June 16, 2017
·1· · · · · · ·A.· · Mike Dalton, Lloyd Silvers.
·2· · · · · · ·Q.· · Anybody else?
·3· · · · · · ·A.· · Not that I recall.
·4· · · · · · ·Q.· · All right.· And again, your
·5· · · · understanding about what is in paragraph
·6· · · · twenty is what you think you heard during
·7· · · · these telephone calls, is that correct?
·8· · · · · · ·A.· · That is correct.
·9· · · · · · ·Q.· · But you can't identify which
10· · · · speaker was making, given the information
11· · · · that contained in that paragraph, in twenty?
12· · · · · · ·A.· · That's correct.
13· · · · · · ·Q.· · So just the two individuals you
14· · · · just mentioned, you can't say even as to
15· · · · those two, which one of those said those
16· · · · statements, correct?
17· · · · · · ·A.· · Correct.
18· · · · · · · · · ·MR. EDGERTON:· All right.· I have
19· · · · · · ·nothing further.
20· · · · · · ·A.· · It was a long time ago.
21· · · · · · · · · ·MR. KLEIN:· Thank you Sam, as to
22· · · · · · ·that non-hearsay.
23· · · · BY MR. KLEIN:
24· · · · · · ·Q.· · As to Lloyd Silvers, what did he
25· · · · tell you were the rumors that you heard?

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Davenport 283:24-284:3
465
John Davenport
June 16, 2017
·1· · · · · · ·A.· · That Steve had directed him to
·2· · · · destroy documents and destroy computers out
·3· · · · in San Diego.
·4· · · · · · ·Q.· · When did Lloyd Silvers tell you
·5· · · · this?
·6· · · · · · ·A.· · I don't know at this time.
·7· · · · · · ·Q.· · Did Mr. Silvers tell you why
·8· · · · Steve Dalton had given him such
·9· · · · instructions?
10· · · · · · ·A.· · I did not say that.
11· · · · · · · · · ·MR. KLEIN:· Nothing further.
13· · · · · · ·Q.· · I've got one.· Did Lloyd Silvers
14· · · · tell you that any of my clients had any
15· · · · knowledge of what Mr. Dalton told them to
16· · · · do?
17· · · · · · ·A.· · He did not mention any of your
18· · · · clients.
19· · · · · · ·Q.· · Do you have any personal
20· · · · knowledge of my clients having any knowledge
21· · · · about that claim?
22· · · · · · ·A.· · I have no personal knowledge.
23· · · · · · · · · ·MR. REYNOLDS:· That's all I have.
25· · · · · · ·Q.· · Do you have any idea like what

(619) 573-4883 YVer1f
Davenport 283:24-284:3
465
Mike Confirms Dalton And Silvers

Intentionally Destroyed Abernathy’s
Computer To Keep It Out Of TRG’s
Hands
Michael
04/25/19 PageID.34337 Page 441 of
June
465 14, 2017
·1· · · Q.· ·What did he say?
·2· · · A.· ·Just that some of the hard drives were, you
·3· know, destroyed and those computers are no longer in his
·4· possession, things like that generally.· Nothing
·5· specific.
·6· · · Q.· ·Did Mr. Silvers say who ordered the destruction
·7· of these computers?
·8· · · A.· ·Let me think.· I don't believe so, no.
·9· · · Q.· ·Did he say whether they were intentionally
10· destroyed or whether they just broke?
11· · · A.· ·I only know of one computer that was
12· intentionally destroyed.
13· · · Q.· ·And which one was that?
14· · · A.· ·That would have been one of the female
15· employees for Ardent who had -- do you want me to
16· elaborate on that?
17· · · Q.· ·Please.· Go ahead.
18· · · A.· ·-- who had some naked pictures of herself on
19· there and other information that they didn't want to
20· have go back to TRG if she chose to go back, so they
21· waited for her to go to lunch.· Lloyd, Steve -- Lloyd
22· and Steve gave Nelson the go ahead from -- from my
23· understanding here to destroy the hard drive, to make it
24· appear as if her computer just stopped working so that
25· they -- she wouldn't discover that they were actually on

(619) 573-4883 YVer1f
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04/25/19 PageID.34338 Page 442 of
June
465 14, 2017
·1· her computer.
·2· · · Q.· ·Is that Tina Abernathy?
·3· · · A.· ·That's correct.
·4· · · Q.· ·So you said there were two things that they
·5· didn't -- that Lloyd and Steve didn't want seen, and one
·6· were naked pictures of Tina?
·7· · · A.· ·Right.
·8· · · Q.· ·The other was what?
·9· · · A.· ·Any kind of confidential information they had
10· about Ardent that she could take back to TRG.
11· · · Q.· ·So you have no idea what that was, the latter
12· category?
13· · · A.· ·I don't.· I just know the computer was
14· destroyed.
15· · · Q.· ·Okay.· And this -- Lloyd told you this?
16· · · A.· ·Yeah.· Yes.
17· · · Q.· ·Did Lloyd tell you that my clients, any three
18· of my clients, were aware of this happening?
19· · · A.· ·No.· We didn't discuss that.
20· · · Q.· ·So as far as you know, they weren't involved in
21· this at all?
22· · · A.· ·That's -- that's correct, yes.
23· · · Q.· ·Okay.· Or had any knowledge of it occurring?
24· · · A.· ·Well, that's correct.· We didn't discuss it.
25· · · · · ·MR. REYNOLDS:· Anyone else have anything on

(619) 573-4883 YVer1f
465
Silvers Has Nelson “Clean” His

Computers (Exhibit 641)
465
From: Matt Nelson

Sent: T~ursaayl March 26, 201o J:12 PM
To: Lloyd Silvers
Subject: Re: MarKeting Email Adaress
Throw that tower and laptop in your car. Ihave an extra harddrive you can have if ineed to copy any personal
files before cleaning iliem. also Max has been blowing up my phone about the computers in chula vista.
Ex.-.uur_ (?L.j l
Wt TN E:ss :_$1' I V ers
0A'rE:_ 4-IC ·-11
NuMn~R OF> PAG~s:_ / -
1.0,. I 1-fcCA.RTffY, CSR GI 'lo, RPR -

465
Silvers Fails To Produce Evidence Until

He Involuntarily Turns Over His
Computers
465
Silvers Falsely Denies Recruiting The

Keating Group Despite Receiving
$70,000 to $90,000 For His Efforts
465
Silvers Lies About Knowing Exactly

Who X,Y,Z Are
Sevel Said Data On Silver’s Computers
465
Irretrievably Lost
• Silvers computer altered by Windows 10 upgrade [RT
326:11-14]
• DBAN installed on USB drive a few days Sevel inspected
[RT 327:16-23; 328:14-18]
• Contrary to Silver’s testimony, information was wiped
[RT 329:7-330:10]
• Only about 17% of deleted files were recoverable [RT
332:19-24]
• Sevel could not access Silver’s Dropbox [RT 333:17-22]
• Sevel could not find Gmail accounts for relevant time
period, which had to be deleted intentionally [RT
335:9-13]
465
1 December 2016, and he indicated that Mr. Silvers would
2 be bringing in a computer or digital devices for me to
3 examine. And in December, he brought in a computer for
4 me to review.
5 Q. Was that on or about December 16, 2016?
6 A. Yes, sir, it was.
7 Q. And what was the first computer you looked at?
8 A. The first computer was a Windows computer. I
9 believe it was an HP ENVY. And that was forensically
10 imaged and then reviewed.
11 Q. When you reviewed the computer, did you see any
12 upgrade that interfered with your ability to review it?
13 A. The upgrade to Windows 10 typically modifies
14 registry files and perhaps overwrites certain data. In
15 this case, there was absolutely no USB device use
16 indicated before December 5th, which is unusual because
17 there's numerous USB devices built into the computer.
18 But there were two USB drives that were connected after
19 December 5th, between December 5th and December 16th.
20 But nothing prior to that. So that affected my
21 examination.
22 Q. Did you find any missing files?
23 A. There were quite a few files that were -- I
24 should say folders that were created, cloud folders that
25 were on the computer. And there were also some LNKs to
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1 Google Drive. And out of the LNKs to the Google Drive,
2 there was about 25 percent that were not present. I
3 believe there were 200 that were found, and about 47
4 were not present.
5 Q. Did you come to the conclusion that any of the
6 files that were not present were intentionally deleted?
7 A. Well, if somebody deletes a file or if somebody
8 deletes something out of their cloud account, it becomes
9 personally deleted after a period of time.
10 Q. Did you also look at any USB drives?
11 A. There were indications -- well, let me rephrase
12 that.
13 I was provided by Mr. Silvers with several USB
14 drives to review. They were forensically imaged and
15 then examined.
16 Q. Did you examine a PNY 32 gigabyte thumb drive?
17 A. Yes, I did.
18 Q. Did you find anything unusual on it?
19 A. Several items. The first was a program called
20 DBAN.
21 Q. What is that?
22 SPECIAL MASTER: How do you spell that?
23 THE WITNESS: D-B-A-N.
24 BY MR. KLEIN:
25 Q. And what is it?
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1 A. DBAN is a wipe program, and it's specifically
2 designed to wipe drives.
3 Q. What does DBAN stand for?
4 A. According to their website, it stands for
5 Darik's Boot and Nuke.
6 Q. Say it again?
7 A. Darik's.
8 Q. How do you spell that?
9 A. D-e-r [sic], I believe it's i-k, apostrophe, s.
10 Boot, B-o-o-t, and Nuke, N-u-k-e.
11 Q. And does DBAN have any purpose other than
12 wiping data?
13 A. No, sir. Not that I've been able to find.
14 Q. Were you able to determine when it was
15 installed?
16 A. Yes. In fact, it was installed the day
17 before -- I'm sorry -- several days before, on
18 December 19th, 2016.
19 SPECIAL MASTER: It was installed on
20 December 19th, or several days before?
21 THE WITNESS: Several days before
22 December 29th. Excuse me if I said 19th. It was on the
23 29th.
24 SPECIAL MASTER: Several days before
25 December 29th.
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1 THE WITNESS: It was on December 29th. It was
2 provided to me several days later. So -- about six days
3 later.
4 SPECIAL MASTER: Okay. It would fall on
5 December 29th.
6 THE WITNESS: Yes, sir.
7 Also, what was unique about that drive was that
8 part of that drive appeared to have been wiped itself.
9 BY MR. KLEIN:
10 Q. How do you know?
11 A. With the forensic program that we use, we're
12 able to see what's called unallocated space. It's the
13 area of the drive that's not currently being used. And
14 I could tell by the characters that were in that
15 unallocated space that it had been wiped.
16 Q. How were you able to determine that?
17 A. I'm going to get a little technical here for a
18 moment. When we look at digital devices, we see words;
19 we see pictures. But, in fact, it exists in bytes of
20 data, ones and zeros, positives and negatives. Software
21 interprets that data so that we see text or we see
22 what's hexadecimal characters, which is another level of
23 looking at data.
24 This was specifically wiped, in my opinion,
25 with the hexadecimal character "AA," which is very
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1 unique. I don't know that I've ever seen that before.
2 In the past, you'll see wiping programs that write with
3 the hexadecimal 00. Or when drives come from a factory,
4 it's wiped with 00. In this case, it was unique to me,
5 and that's why I saw that.
6 SPECIAL MASTER: In other words, this is
7 consistent with wiping data and then wiping the evidence
8 that the data had been wiped.
9 THE WITNESS: Actually, wiping either files or
10 the entire thumb drive itself.
11 SPECIAL MASTER: But then trying to eliminate
12 any indication that the wiping program had been used.
13 THE WITNESS: Actually, that can't be
14 determined from the thumb drive. The DBAN program can
15 be plugged into a computer, booted to that thumb drive,
16 and then that thumb drive is used to wipe that computer,
17 or that drive.
18 SPECIAL MASTER: But the net effect is wiping,
19 and then destroying evidence that the wiping had
20 occurred.
21 THE WITNESS: Sure.
22 BY MR. KLEIN:
23 Q. Did you look at a second PNY device?
24 A. I did. And what was unique --
25 Q. Hold on.
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1 Q. What do you mean it hadn't been provided?
2 A. Well, I was provided with an original computer,
3 and then I was provided with the USB drives, but that
4 was it. And when I asked him about that, he said, oh,
5 yeah, that's my travel computer. And he had not
6 provided that. So I mentioned that to Mr. Jastremski,
7 who apparently talked him into providing that.
8 Q. And before we get to that one, let's talk about
9 the Lexar 8 gigabyte device. Did you receive such a
10 device from Mr. Silvers?
11 A. I did.
12 Q. And what did you see on that device?
13 A. That device had about 172 files that had been
14 deleted. It was a combination of some system files as
15 well as user files, documents and spreadsheets.
16 Q. Were you able to determine whether you could
17 recover -- how many total files did you see deleted in
18 December of 2015?
19 A. It was approximately 1712 files in a time frame
20 from December '15 to February 2016.
21 Q. And of those 1712 files, how many were
22 recoverable?
23 A. 299. About 17 percent were completely
24 recoverable.
25 Q. Now, you mentioned that Mr. Silvers then at
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1 some point delivered his travel laptop. Did you look at
2 that?
3 A. Yes, sir, I did.
4 Q. And what did you find on that?
5 A. Well, firstly, it had to be married with that
6 USB drive that had the VeraCrypt on it, or it couldn't
7 be seen or booted to. So once I married the drive, I
8 was able to decrypt the data and review that device.
9 Q. What did you find?
10 A. Again, that it also had a Windows 10 upgrade on
11 it very recently, which, again, inhibits some of the
12 examination that we can do. I found that there were
13 numerous deleted files on that computer. There were
14 also storage drives that were linked to cloud storage.
15 Q. And what else did you find, if anything?
16 A. I believe that was what I found significant.
17 Q. Now, did you look at Mr. Silvers' cloud drives?
18 A. Yes, I did. He provided credentials for
19 several cloud-based storage drives.
20 Q. Were you able to see his Dropbox file?
21 A. No. He told me that he no longer had access to
22 Dropbox.
23 Q. Did you also see his box.com file?
24 A. Well, he provided me the credentials for that.
25 But when I tried to log in, I was unsuccessful. And
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1 files in the regular file area, only within the trash.
2 And I believe there was a few in the recent file area as
3 well.
4 Q. Did you come to the conclusion that any of
5 those files were intentionally deleted?
6 A. Well, they had to have been. You know, the
7 account does not automatically put things in the trash
8 file for you.
9 Q. Did you find anything for 3jabrones or
10 caraannmorrison in terms of e-mail?
11 A. No. I looked through all of the e-mails on the
12 computers as well as Mr. Silvers' Gmail account, and
13 that account was not present.
14 Q. Do you have an opinion as to whether or not
15 Mr. Silvers has an above-average level of sophistication
16 for a computer user?
17 A. I would say he definitely does.
18 Q. Why?
19 A. Well, several reasons. One, using the wipe
20 program, it's not typical to see a wipe program, though
21 I've seen that several times in my career. The
22 encryption program, less times than that, particularly
23 an entire computer that would be encrypted. And then,
24 finally, at one of the cloud accounts, I found that he
25 was doing SQL query training. There was some programs
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What’s Missing And Will Never Be
465
Found?
• Keating Dropbox communications
• Gigliotti Dropbox
• Two years of Gigliotti text messages
• The Mele notepads and deleted files
• All the broker protocol information
• The Abernathy hard drive
• The Silvers deleted data
• Emails from false addresses
• Secret Google Drive documents
• ????
Anheuser-Busch Inc. v. National
465
Beverage Distributors, 69 F.3d 337(9th

Cir. 1995)
• Dismissal warranted where deceptive practices that
undermine judicial proceedings were deliberate
• Dismissal appropriate where distributor lied about
destruction of documents and testified falsely
• “Courts have inherent power to dismiss an action when
a party has willfully deceived the court and engaged in
conduct utterly inconsistent with the orderly
administration of justice”
• Court rejected “no prejudice” argument
• “Outright falsehoods” at deposition justify dismissal
In Re. Napster Inc., 462 F.Supp.2d 1060
465
(N.D. Cal. 2006)

• Motive in destroying evidence relevant
• Dismissal appropriate where conduct is willful
or in bad faith
• Presumption of prejudice where party acts
willfully
Leon v. IDX Systems Corp., 464 F.3d 951
465
(9th Cir. 2006)

• Willful destruction of computer data
supported dismissal as lesser sanctions not
appropriate
• Willful deception of the court undermines the
integrity of judicial proceedings
• When court cannot ascertain what documents
were destroyed, the documents must be
presumed to have been relevant
Global NAP, Inc v. Verizon New England
465
Inc., 603 F.3d 71 (1st Cir. 2010)
Default judgment affirmed where party lied to

the court and destroyed a computer
• Lied to court about bookkeeping procedures

• Computer records destroyed
TeleVideo Systems, Inc. v. Heidenthal,
465
826 F.2d 915 (9th Cir. 1987)
Perjury qualifies as willful deceit justifying

dismissal
465
David Hall Is The Fall Guy

• Hall represented Dalton for over two years
• History of sanctions and contempt signaled red
flags unless he was following orders
• Dalton aware of “writing checks” – but Hall stays
• After Shustak, Reynolds leaves the case, Dalton
has Keating Group retain Hall
• Not a single document produced showing that
Hall was doing anything but following instructions
• Where is the Bar complaint or malpractice
action?
465
Dismissal Is the Appropriate Remedy

• Nothing produced from secret email addresses
• Will never know what was on Abernathy’s computer that
scared Dalton so much
• Impossible to know what was destroyed in Keating “doc
disposal”
• Repeated instances of perjury – including at this hearing
• Stonewalling discovery for years
• Dalton history of non-compliance with court orders
• Witness intimidation
• Silvers computer cleaning
• Court ordered D4 debacle
• Impossible to know what we do not know
Monetary Sanctions And Instructions
465
Insufficient
• Dalton sanctioned repeatedly – no impact
• Dalton did not pay sanctions until moments before
terminating sanctions order
• Dalton only paid just over $3,000 of the $19,216 this
court ordered – and ordered by Judge Lorenz
• TRG has been forced to incur approximately $200,000
in presenting the evidence in this hearing
• Instruction justified where evidence is destroyed
negligently, but not in these circumstances
• If terminating sanctions not appropriate for this case –
then when?

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Case 3:15-cv-00057-L-AGS Document 404-7 Filed 04/25/19 PageID.

33897 Page 1 of 465

1 Gerald A. Klein, Esq. (Bar No. 107727)

This Is An Extraordinary Case

But For Two Whistleblowers and

This Case Cries Out For Terminating

This Case Involves A Conspiracy To

TRG Has Proven It Was The Victim Of

Steve Dalton As The Mastermind Of

Comparison To Criminal Case

The Three Controlling Cases Are:

American Credit Indemnity Co. v. Sacks

It Is Undisputed The Keating Group

Dear Samara & Paul,

I want 10 share an impo11ant change I have made with you.

Morlife – Leading Case In CA

“Based upon the facts of this case, there is no

“Moreover, in its employment contract signed

“Creating an artificial distinction between the

“‘[i]t is this personal acquaintance and

Keating v. Jastremski (2016) S.D. Cal.

This Is What Judge Lorenz Had To Say

“It is undisputed that TRG meets the first

“TRG spends over two million dollars per year

“The TRG's client information was not

“As to the second prong, the Advisors heavily rely

“They contend that the information they took,

“However, Galante did not decide this issue,

“In the present case, TRG has shown it had

“The MLA agreements at issue in Galante

Is The Customer List In Salesforce A

The Keating Group Admits It Is (As

·1· personally get a share?

Orange County Depositions ·70

·1· · · · · ·You can answer.

Orange County Depositions ·71

·1· · · · · ·MR. EDGERTON:· Objection.

Orange County Depositions ·119

Everything That He Had To Do To Build

To The Extent The Keating Group

The Keating Group Came With No

Keating Spent Years In Financial

·1· · · ·A· ·Not to my recollection.

Orange County Depositions ·29

…But Leaves With Almost

1 you joined TRG was zero?

3 End of audio playback.)

4 MR. KLEIN: I'd like to play Mr. Mele, page 56,

5 lines 16 through 22.

6 (Audio played and stenographically recorded as

9 Q. "So in 2009, when you started, you were making

10 about $30,000 a year. Is that roughly accurate?

11 A. "Around there. A little -- yeah.

12 Q. "And at the end of 2014, the first week or so

13 in 2015, by that time your income had grown to 175; is

16 End of audio playback.)

18 Q. When Mr. Keating left your firm, what were his

19 assets under management?

20 A. Roughly 200 million.

21 Q. And he came with how much?

22 A. He came with zero.

23 Q. And how much of those assets were assets you

24 gave to him from other account reps?

25 A. Just assigned to him?