Law firm testimony hints that money from a Ponzi scheme funded litigation costs in Epstein-related cases

Pe Pe WhnHrF OW MAND UF WHE Beeb mn Ws anarno Ss WHY PE NNNNNNEFE PPE PPR PB OPBWNHEF OW AWHOBWNHHE OW their book of business. This being said, ] was_ bringing in legitimate lawyers to form legitimate practice groups to practice legitimate law, having nothing to do with the Ponzi scheme. Q. During the year 2009, were there any, to your knowledge, any big settlements of any cases at RRA? A. To the best of my recollection, no. We had a dismal year. Q. The year 2009 was just dismal across the board? A. Some people did better than others, but yes, overall] it was for a firm of 70 lawyers, it was dismal. Q. So there were no big wins coming into the firm as far as a financial windfall other than from your other businesses? A. The only significant capital coming into the firm was money my co-conspirators and J were stealing. Q. Was there any particular practice group that you can remember that had a particularly non-dismal year in 2009? A. Mr. Nurik had a good year. Q. Do you recall what the gross revenue was from legitimate sources in 2009? Page 46 A. It was somewhere between eight and $10 million, probably right around the nine million mark. Q. Do you know what your -- A. On its best day. Q. What was your overhead for salaries in 2009, do you recall? A. 1 don't have a clue. Q. Was it more than you brought in legitimately? A. With what I was paying in salaries, J'm -- J mean, I'd be guessing. If it wasn't more than, it was certainly close to it. Q. That's just salary, that's not talking about anything else, rent, overhead, things of that nature? A. That's correct. Q. Who was paying for the investigations of the cases that were going on in 2009, the deposition costs, the filing of complaints, and things of that nature? Where did that money come from from your firm? A. It varied from case to case. Q. For the tort group? A. It was fronted by the law firm for the most part. Page 47 RI EEE se an s ie : : 5 i Hy 2 a 4 S i a gt : 4 eS d | OW®wwWnNrP OW MONDO BWNHEH DMO DWAIUAHAYOBWNHH re erp nergy ea reg ra YUU TRS UA HG A IE TRU SE MES UE EM BR I RE OR APES SEES AS MT OS NMNNNNPPRFP PPP RP EE B Q. For the most part. What wasn't fronted by the Jaw firm? A. | recall there being a couple of agreements that various tort lawyers had with certain clients where they were going to assist in helping to pay the costs. All the other costs would have been paid by the law firm, both through legitimate and illegitimate means. Q. So when you say by "illegitimate means,” where would the illegitimate means money come from? A. It came from the Ponzi scheme, and all the tentacles of the Ponzi scheme, other illegal activity. Q. Such as? A. Things ] was doing with law enforcement, things ] was doing in politics, things that ] was doing with organized crime, things ] was doing with politicians, judges, other lawyers, bankers, business people, things of that nature, ]'m sure there's more. Q. Do you recall if any of these Epstein cases underwent significant investigation while the cases were at your firm? A. I'd be guessing. ] don't remember. Q. There was a meeting in 2009, July of 2009, and it appears from the e-mail communications that it was for everyone in the firm to attend and it was Pag e 48 oa arene reece regarding the Epstein case. In fact, there was an Epstein conference room that was reserved for it. Were you present at that meeting? A. I may have been. Q. Do you recall? A. | don't recall one way or the other. Q. You don't recall it. Do you recall anything about the Epstein case in July of 2009? A. Idonot. Do you have something that might refresh my recollection? MS. HADDAD: Can we just take a five-minute break night now? THE WITNESS: Sure. MR. GOLDBERGER: Thank you. MS. HADDAD: Thanks. {Short recess taken.] BY MS. HADDAD: Q. Scott, 1 was asking you before we took the break about a meeting with respect to the Epstein cases. There was a 159-page privilege log filed, which I'm sure you don't have and are not aware of. But in it there are many, many e-mails to both attorneys at RRA, yourself, and Mr. Nurik regarding the Epstein litigation. And all this resolved in July Page 49 13 (Pages 46 to 49) FRIEDMAN, LOMBARDI & OLSON 305-371-6677 5ed93085-0554-447f-bcdd-ca2d8fe941df HOUSE_OVERSIGHT_017502