Garvey Cross-Examination

Fm FEDS-E16529 11f14f2 3 004f035 24 A Absc: ely. Simii ly, sir, February you're telling the jury that $10,867 A is 60 percentuiz E) Okal actually put 1 retainers. when Mr. posting revenL . something Tuoker. A in your has the for and A 1996 in Kerr; front: And Yesg And: Yesg Yd the? No.. 12 percent of a negative $9,696? ilarly you are telling the jury that 6,000 a negative 9,953? t?s your testimony? Let's take a look at the, what you've his chart in terms of these unearned nderstood, I think you understand that ted his financial statements when he was what he received from the company is lled a sales summary that came from Lisa hear that testimony? ?ve seen examples of that both today and ns and so forth. It's a written grid that invoice number, a reference to what it's date paid when it's paid, etoetera? have your set of billing summaries for you? PEHEAD I 1-531-631-Ei? FCIFIJ 2'194 11f14x?201318204107133832? 0053035 . 25 MR. hL EACH: Can we have for the witness Exhibits 3A, me' going to use 3A through We?ll start, let'a :ha do them one at a time. BY be. ALSPACH: I?m?ha ding you what?a been marked as Plaintiff's Exhibit 3A. Yb have that Mr. Garvey? A Yes; Now.b he identified that as an example of some type of billiub ummary Mr. Kerr would receive from the company? i A Yead Now t1 5 one happens to be for the whole year, correct? Jantb: through the last page I believe it?s December, corrpt THEwtc RT: or ?96? MR. b: PACH: Yes, Your Honor. THE RT: Okay. BY QR. ALSPACH: So uh this one was made up the company knew whether or nod ymente had been made on their invoices for the entire year, correct? A Yeed Nowgw Mr. Kerr received these summaries they would be on aim thly basis because he needed to do a finandi statement, correct? PEHEMZI - -ms Hanna-:94 11f14f201318208 F331 4101133332? JUHH DUDE QUEHUEE 26 i A Yes.i Sc he would receive a summary and I sometimes whe blanks for whE you would get that correct? A It's; Welj?' says. Now on unearned reta: January of 199 A Yea; Canl A Yesi 0 Does?. A that summary 1 A No. various finan: A presented to I is for a reta?h: Saysi. My due Thizi Yesd Not! would receive that summary there would be rr or not payment had been received because nt?s take a look at the summary and what it a document that was given to Mr. summary before payment had come in, is pr chart here your first entry of an is invoice number 960001 for $5,000 in find invoice 960001 on the sales summary? say anywhere on that sales summary this itial payment. .tion, sir, was does it say anywhere on . is for a retainer? Kerr, statements, isn't it, sir? hstanding that it doesn?t, it wasn?t Kerr as a retainer, it was paid, wasn?t FCIFIHEIJM 'l'lf'l?x?ECI'lE 18:410733832? JDHH it? January wasn't?' A And i Unearned retai; the company, 1; A Yes.i And 2 booked some oil A No, booked some o1 been booked Mr. I?m your opinion. any doeuments i company that him or you who A Don looked at but: .?eates it was paid January 23, 27 1996. .as actually booked in January and paid in Ir testimony was that's an example of an that was used to inflate the revenues of that because you think it should have been time, other than January? nt's because, well it should have been time other than January. It should have the revenue was earned. 3n was the revenue earned on that invoioe? Kerr know, sir? I in my opinion needed to ask or inquire. asking your opinion right now. You gave at I want you to tell me is, have you seen all your searohes baok there from the given to Mr. Kerr that would have shown his income was aotually earned? Kerr would have TIC). DDTIDEE mam 10:00 FAR 4107033002? JDHH 0000 000E035 23 1 And Mr Kerr was deing eempilatien statements 2 wasn't he, sin? 3 A Yes.; 4 I mean te de a compilation statement yeu rely 5 upen the inferma ien that's previded by the cempany tn the 6 is it, sir? 7 A That: ene ef the things, yes. 3 Let?: ente the nest unearned revenue, unearned 9 retainer en chart. $2,500. DD yeu see (inaudible)? 10 A Yes 11 New the sale summary fer inveiee 960008 dues 12 that refer to . word retainer anywhereyeur Chart, isn?t it? 15 A Yes,?: is. 16 New alse was paid, wasn't it? 17 A It paid in February, the end 0f February. 13 Se first twe the cempany actually get the 19 m?ney fer thede irst twe entries, didn't they? 20 A Yesi 3 Let?s te February inveiee number 0016. Ian 22 see that in yeu February summary Mr. Garvey? 23 A I 24 Dee: werd retainer appear anywhere en the 25 sales summary? I 1-310-631 49E FIJFIH 21194 11f14x?2013 10:00 FAH 4107033002? 0000 003E035 a 29 1 A No. 2 And ihjt was also paid, wasn't it? 3 A Yes. 4 And it was also paid in the same month, wasnLet'e go onto the next entry we have here which 3 is the entry 960024 for March 14, do you see that? 9 $6,000 correct? ir? 10 A Yes See px?er sales summary? 12 A Yesd 13 And t1?t one actually does say initial retainer 14 doesn't it? 15 A YesL 15 It aha: was paid, wasn't it? 17 A It paid in April of ?96. 13 Let's go on to 960046, May 30?, do you have that 19 one there? 2D A Yes. 3 That?:s also for a initial retainer for a 22 controller po?i'non wasn't it? 23 A Yes: 24 Andii' was also paid wasn't it? 25 A In Llu 1-531-331-569 F-DFIHEQEH 113?14x?201310200 FHA JDHH 0000 [?0103035 30 And "5 go onto 960047. Initial retainer, oorreot? A Yes Pair aen?t it? A In st. 960( initial retainer, you see that? A Yes It a paid wasnonto 960063, we're in July now, July ll?. Retained =llas and (inaudible) do you see that? A Yes ThatE we a big one, $75,000, wasn't it? A It ?5 $75,000. And i was also paid in the same month, wasn't it? A It A paid July 15?. And; -n on July 15? there was another retainer wasn't there? i 008?? I?m sorry, 960067. A 67. s. Now: :t doesn't say retainer, does it? A No.5 Butl ardless it was also paid in the same month, waen?ti' A It paid July EBHH i I 1-520-531-655? PEI-11.132391- 11f14x?201310200 FHA 4101033032? 0000 011E035 31 August we?re now in August 960072. A QkayL Reta?n r, investment services, do you see that? A And th was also paid, wasn?t it? A It wee paid August 22?. Samegr nth, correct. And finally we're down to 960082, correct? A Yes $10,0t initial retainer? Do you have that? A Yes? It also paid, wasn't it? A It ma: paid in October. And p: we have, we're into September now, 960004, do yeti: that? A Yes.1 Retail $3,000, that was paid also wasn't it? A In mber. Okag. And then we have nothing until December and when you ?e ified on Friday I think you particularly pointed out t?a $100,000 retainer 960118, do you remember that? A Yesl Andgy said this was the one that another Chart you had up showed recorded as sale without support or i i I 1-6141-531 ?553 FDFIH 2W4 11f1?f2013 JDHH [?01 EIUSE some reference? A Yes. Now ?c it, sir? A It?sio It A Yes And i A Not: Jane didn?t it? A Yes; So month of, or unearned retamhe the company go A At 1 WelE it got in the; A Yes. But inflating the; company actuai~ A Coui he that. Do you recall that? starters 960118, it's not a retainer, is of three payments. says payment two of three, doesn't it? fact it was paid, wasn't it? il January. 7 1:11 I 1997. The company got the money, Garvey isn?t it true, sir, that for the the year of 1996 all of the supposedly actually were paid to the company and ll that revenue? point, yes. thin 1996 except for the very last one and st week of January? remains your testimony that Mr. Kerr was enues of the company. Even though the got the money? It's a yes or no. on ask the question again? ins your testimony that Mr. Kerr was Fm mm 11f14f2913 19:410193992? JDHH inflating the retainers. actually get A Yes Let? 1997 up there? A questiens abe1 at the year er A leek at the bet? accerding te yeI negative 519,3 A Yesd New; retainers that fer 1997. sales summary. A Ne, Letlhe A Whecb. Let's recerding ef Yealk Okajk Yeun The it} 33 is enues ef the cempany by rec?rdi?g .Is yeur testimeny. Even theugh the cempany :eek at 1997. Mr. Prejectienist is that a aside Mr. Garvey geing back te my he chart yeu presented fer 1996 if we leek sir? ef August 1997, cerrect, art is telling us, is it net that, let me percentage ef menth inceme, chart $19,400 is 100 percent ef a sir? cerrect? On yeur chart, "s take a leek at what happened with these claim were unearned and inflated revenues 'rst ene is 970037, de yeu see that yeur a?m serry yeu need 1997. De yeu have ?97? :s is just ?96. hand that te yeu. It?s BB. I'm serry my fault. ake a leek at 1997, Mr. Garvey, yeur first unearned retainer is fer March, de yeu see 0135035 PEMEFEI - 1-600-531 Fem-1m 11f14f2013 410?83832? JDHH 0000 [?01 4f035 that in the an: A Yes. Now i A You? April of ?97, A Yes; $100 A Yes; And? A It And 0 retainer for A C611: And: A In 0 Let? because you ca actually paid 0 to understand accounting. wasn?t paid uri: your looking a income for Jun Yes,g;' 34 of $4,000? at was paid also, wasn?t it, sit? w'paid in June. June there was a report of an unearned I00, Correct? wasn?t it sir? just stop you there for just a second gnue to point out which month it was And that's fair enough. But I?m trying theory of your complaint here about this just told us that $5,000 retainer for June a couple of months later. So by way of 'hings that $5,000 should come out of right? doesn't really have anything to do with I 1% FINE-12094 11,314,5201310210 FAH JEIHH 015E035 35 the date it?s pa d. Butugn-r testimony is that $5,000 shouldn?t be included in Juh? because it wasn?t earned in June? A That}s correct. But don't know when it was earned, do you? A No.? And'hi Kerr didn't know when it was earned, did he? A Prohsk not you just testified and confirmed from the chart that if p: go back one month the $10,000 retainer in April, 0052, see that sir, the $10,000 retainer in April? 5 A Aprid hf? I A Oh, gel paid in June, wasn't it? A Yea; So if ie change the accounting procedure so that instead of boo were invoiced, were paid, the chart, A No, You' correc? the retainers in the month that they were to hook them in the month that they ~5,000 would come out of June on your nisagree with where you are going. f?t know where I am going yet, sir. m- 1-500-335-5205? FORM 3354 11f14f201310210 FAH 410?00002? JDHH 0000 E0103005 36 A Yes,?1 do. if we beeked them en the menth they were paid instead CE eeme eut ef the $5,000 retainer net be shewn an A The L. 53.00 A I?m t1 the jury se. a I k?im want tn knew if te de that banal they are paid 01 weuld have ten% weuldn't we? A That? New $3,000 eerreet? A Year It A Yesi We a0: A Yesd It he. he menth they were inveieed, $5,000 weuld eerreet? Because yen just teld us it was June was paid in September. Se it weuld une weuld it? sir? answer that questien, weuld yeu, ing te answer it. I den't want te mislead well, we'll get inte that later. But I 5,000 is remeved from June and we?re geing we're geing te heek the retainers when tead ef when the inveiee gees eut, then we $10,000 frem April and put it into June right. '3 ge ente August. We have retainer 0093. paid, wasn?t it? have retainer 0094. $8,400, eerreet? paid wasn?t it? 1-503-631-6539 11f1?1f2013 10:410103032? 0000 01?,?035 37 A Yes.. Reta0n 0098, $3,000, it was paid wasn?t it? A Yemi Retmintr 970l05, $5,000 it was paid, wasn't it? A Yes. We 0 September we have 0110 for $5,000. I'm sorry, I'm wrjnu $1,000, correct? A Yes Andnt. was paid wasnNovember 0144, $10,000 that was paid, wasn't it1 A Yes 155.5 a A Yes 156,; s: A Yesi also paid was? A Yes.; the year of 199' testimony as uhc1 all those rete didn?t they, ad: SD (313'. paid, wasn?t it? all of the retainers for the month, for that you characterised under your direct rned revenue that inflated profit figures, -rs in fact became cash for the company, in 1997? FEHEAEI 11f14f2013 10:10 FAH 410103002? JDHH 0000 0103035 33 1 A Yes.i 2 0 Let'e 'eek at the 1990, Mr. Garvey. And I think 3 I need te giveEEru a new exhibitapelegize te turn my back an you, but 6 the dynamics he-w are each I have te. I'm geing ta give 7 you a new exhuh and 1?11 take that other one back. I 3 think we're dehu with that. 9 A It?ei 15 Due 10 There Du go. And we have 1998 up there, right. Same exercise a I'll try te meve as quickly as I ean. 12 January, $15,001! number 16 paid, correct? 13 A Hele? a see. 16 paid? yes. 14 Febrha there was ene retainer in the amount cf 15 $10,000. 15 A I thdii that was March. 17 I'm hairy, yeu?re right, it?s March. I 13 apelegize. Met: a retainer in the ameunt ef $10,000, 19 eerreet? 20 A Yeea 21 Paieg, a ight? 22 A Yes.% 23 A rat .ner in the amount 0f 5,000 that was paid, 24 25 FWD 1-520-331-6595 roman-04 10:11 FAR 410T03002T JEIHH 0000 010E035 39 1 Anouha' retainer in the amount of $,5000, that 2 was paid, waankt it? 3 A Yea 4 Anodhei retainer in the amount of $10,000 in 5 Maroh and thatim a paid, wasn?t it? 5 A Yes 7 Let's go to April, retainer amount of $5,000 8 paid, wasn't at" 9 A April 10 0 Numta: 0075. A Yeah 12 And hl bar 0077, $7,100 that was paid also? 13 A YES. 14 0 In apaii? 15 A 15 0 And the retainer number 00057, $500 that was 17 paid, wasn't 0:1 18 A Yes, . was. 19 And ;etainer finally in that month for $17,500 20 that was it? 3 A 22 Now to May whioh is our next set retainer 3, amount of $5,301 that was paid, wasn?t it? 24 A Yes. 25 And a Ietainer in the amount of $3,000 that was 1-830-631-Em 11f14x?2013 18:11 FAH 4107033832? UEUHUBE 40 1 paid wasn?t it? Nd, I'm that was deleted, wasn't it? 2 A Yes; 3 New 1; ?s leak at that one. What ddes it say? 4 That wasn?t far retainer was it, sirearly warning subscriptidn. 5 0 De any idea what that is? 7 A Yes 8' It?siiwt a retainer though, is it. It's a 9 magazine subscrimtidn wasn't it, sir? A newsletter 1o subscriptidn?? A I bei::ve it was a, yes. Electronic (inaudible). 12 And tH? dne beldw that which was alse deleted yDu 13 have an there a: an unearned retainer that was also a 14 newsletter wasn't it? 15 A Yesd 16 And we get back to actual retainers we?re at 17 dne for E13, and that was paid, wasn?t it? 13 A YES.: 19 And we have 118 for $12,000 that was paid, wasn?t 20 it" i 21 A Yesd 22 And Egg June we have a retainer fer $6,00 paid, 23 correct? I 24 A I hiwej?t fdund it but I'm sure it was. 25 And tl- next Dne $6,000 that was paid, wasn?t it? 1-500-631-5535 410103002? JDHH 0000 021E035 41 A Which number is that, sir? 0 That it 148 A 148.; es, that was paid. And tI-n we go to July, 156, that was paid, wasn't it? A Yesa And we go to 165 for $5,000 that was paid, wasn't it? A YesE And 16 for $6,425, you see that one? A Yes; That -as paid, wasn't it? A Yes; Then go to September and we have one for $1,000, see ttet' A Septer-er, 1,000, yes. That v?s paid in that month, wasn't it? A Yes; And the next one below it, $4,000 that was paid also, waah? it? A Yes. is one for $30,300 and that was paid, wasn?t it? A Yes? And have one for $4,000 that was paid wasn?t FEM 9- FCIFIH EDS-4107033002? JDHH 0000 @0223035 42 it? A Yes. 0 313,60 that was paid, wasn?t it? A Yesd Octdhe we have one for $6,216. Paid, correct, sir? A Yes, i 1999. 0 0n as: ary oorreot? A Yeah And we have one for $5,000 that was paid, wasn't it? I A Yes. And tr finally in November we have one for $1,000 and that as paid, wasn't it? A YES. 0 Now fa some reason there was this retainer for $10,000 in Augps that I skipped at the bottom of the line for some reason,1 number 180, $10,000 in August, that was also paid in as st wasn't it, sir? A What: the number, sir? 180' A 180, 3 s. So do in 1998 all of the retainers that were recorded as revs cash to the ocm? us were paid by the clients and became ny. The company received it, didn't it, 1-300-531-5969 Panama: 'l'lf'l?h?E?'410703932? 0000 023:035 43 air? A Yes. Let?s fake a leek at 1999. Yeu have a retainer fer $3,000 in CC 5 that wae paid, wasn?t it air? A I ddn' knew I den't have it. I?m ed ry, yeu?re right because I didn?t give yeu Exhibit SD. A All riJht. Yes. We hawt a retainer for $12,000, 0020, that was paid alse wasn?t:it, sir? A Yes. 0 And we jump then te February and we have 0040 for $5,000, eerreet? A Yes Andqm- that paid? A No Thatgu a deleted, wasn't it? A Delete: in June You hf-w what that means? A De Izl aw what deleted means? 0 Rigl't A Of cpmree. WelM c; you knew what deleted in June means? A Yes. In Thiha All right let?e ge en te PM I 1-500?531-6353 2094 11f14x?201318212 FAH ?messes? 024:035 44 Maroh. $3,000' orrect? A Okan Was At paid? A Yes And for $12,500, paid, correct? A Yes And for $21,250. Now do you see that one there? A Yes. That: ze was not paid. That was, it said deleted in August didn A Yes Now ?n Mr. Kerr got this statement. this summary did it A No. It mu doesn?t it? A Corr And sometimes shor for that month MR. BY tut-R . If ?o1 ?Hy anything about that being a retainer? says plaoement of Patty (inaudible) Kerr got this summary in March or thereafter to do his finanoial statement Objection. ALSPACH: know. Do you know when Mr. Kerr got I 1M1-EBH maze-a 11f14x?201310212 FAH 410103002? JDHH 0000 025E035 45 A No, I on?t THE E0IRT Reatate your question. MR. I'll go on, Your Honor. BY MR. ALSPACH: Let'a No on to the next month is June, correct? I?m sorry we Mia right It's only April. $100,000 retainer. 0006 on see thatD A I do. That was paid, wasn't it? A Yes. Then'ua have 0071. $2,500 that was paid, wasn't it? A I oam' tell from this printout here. Well lpt's, mine indicates it was paid but we?ll just leave that 'n limbo since yours is not clear. A Okay: Then go $5,000, 0075, and that was paid wasn?t it? A No. That v05 deleted in June wasn?t it? A Correc And there is a retainer for three positions, it was also do A 0 YES. So 15 '2th i fed in June, correct? month there was a $5,000, a $15,000 Fm- 1m1-eaag FCIFIH 211-91 11f14x?201310212 FAH 4101030021 JDHH 0000 retainer that I did skip Jur particular meI ene, twe, thre that? A Yes And i A Weli And and one fer $2 net, yes, the qua 990147? A Yes. Let' A OkaE. A YES Ther A Yes. And is that A 912': it's aett Rig get a retainer fer $5,000, a prebably an easier way fer this ry were all paid, weren't they? ?n in July yeu have a retainer fer $5,588 ry en the next sheet. 46 net get paid, eerreet? He en te July. did I skip June? De yeu see these retainers fer Garvey. Let me hand yeu. There's eur, five retainers in June. De yeu see YES . '50, eerreet? den't see that ene en this sheet. Oh, Yes, it was paid and air? I believe yeur addressing That ens did net, that ene was net paid 1-5113-5145933 FCIHHEIEH 11f1?1s?2013 10:10103002? JDHH 0000 and deleted, fer July bette 0147 and it say' it says en yeu paid, paid? was paid, paidYes 0h, Pla Yes And correct YES. And Yes. And Yes. And Yesd And" cerrect' cerceny t1 Se 47 ect? Because if yeu leek en yeur chart what happened there? that's true. -acement fell threugh? I leted in July. king at the bettem line ef July befere placement fell through. Isn?t that what serry I didn?t see that. Yes, sir. ht fell through? in August we had ene fer $3,000 that was ItEmber we had one fer $5,000. Was that ,Octeber we have ene fer $15,000 and that Nevember we have ehe fer $1,250 and that December we have ene 0236 that was also uDu see that 00236 teward the hettem? 027'3?035 FEM 1-310-531-5565 FCIFHIE 21:94 11f14f2013 10:3035 4101838321 JDHH 0000 [?023 43 A Yes. I'll tnke that one back from you. Now we're almost through what?s in evio that, sir? A Yes 0 You 2000? MR. 3E is your sun MR. 2000. We neec THE MR. THE BY Okay exercise real income and log A I 0 Just for February A Yes. And A Yes. 31' IWJECTIDNIST: CC retainers for $12,000 correct? .RT: wke a look at February. hre Mr. Garvey. I?m going to hand you as Plaintiff?s Exhibit 3E. Do you have 3E up Mr. Projectionist? BE in the year That?s not Plaintiff's 43. Okay, I gave you the summary for I'm sorry, sir. RT: He's got that up. Is that it? Yeah, that?s it. ALSPACH: e're finally in 2000. Before we do this .ck let me bring your attention back to the ine for this year. Do you see that, air? There was income correct? . 1-303-631-6959 F43an 11f14f2013 18:meanness? 0000 [3233035 49 And chart is representing te the Ceurt and the jury that $1*,000 is 447 percent cf $53,609? A Yes, i. is. And in January we had an inceme of $5,050, right? A Yes And we have retainers that menth cf $14,200, ccrrect? A Yes. And y: chart is representing that $14,200 is 36 percent cf isn?t it7 A Yes. In A Yes. We 1 A Yes. And percent cf $11 A YES. New $14,148, ccrre A YES- And A YES. And percent had income cf $17,036, correct? retainers ef $31,884, right? chart represents that $31,884 is 53 HE, doesn't it? -April we had a less fer the menth ef have retainers cf $21,900, right? ?r chart is representing that $21,900 is 73 -gative $14,148, isn?t it? PENIS-WU 1 FDFIH 2119-1- 11f14f2013 18:3035 JDHH 0000 [?030 leek at August. August yeu had a less fer the menth cf $59,538, isn?t it? A Yes And we have retainer inceme that menth 0f $4,320, cerrect? A That'w cerrect. And ye yeur chart represents a $4,320 is 1,378 percent ef the A happened in tt That was paid, fer whatever I think the as secend page ar is page ene at page twe. See A YesWel] I was it? Beca: YES. Letwgative $59,538, is that correct? Fake a leek at the retainers and what ~ear 2000. First ene is 0002, $10,000. wsn't it, sir? New I think yeu need te ge en when the Plaintiff's put this tegether page, the first page is linked te the .eu have te flip te the secend page which hen yeu ge back to the first page which is lat I mean? ?2 fer $10,000 that was paid, wasn't it? tell frem leeking at this. ?t tell frem that ene? _n?t have a payment date. certainly wasn't charged back by the bank there?s a celumn fer charge backs, W- 11f14f2013 18:410183832? JDHH 0000 @031 3035 carrect? A Ccrrec And 00 charged back ta A ND. Retailw back, was it? A ND. New rE' page, yeu had the presented tn being a retair A I was presented You calls it is, Analysis, isn' A Yes, It: it? A Nat And being a retair Search and rep A ND. dc pk at the description ccmment. H5 retainer far There is ne he campany was 0017, ainer 0026, $12,000, 51 charge hack listed. $4,200 that was never it? that was charged which is back an the first in yDur chart but the sales summaries Kerr, dces it, sir? frant of me. hat what it says? are it dcesn't, $420, either, ing, cerrect? DD. dces it? was charged back. say anything aheut a retainer, It says, that deesn?t say anything absut that I dcn't have the sale summary that What it ,rcject Ccllecticn and dces dcesn't say anything absut that public records FENEAEI 1-533-631-5959 11f14x?201310213 FAH 4101030021 JDHH 0000 032E035 52 I'm asking what it reperted, what the substance cf th transacticn was, it was public records search and repel ing, correct? And then it was charged back. A That the description or the cemment that was en the decumert Rigtt And then there was a 513,00 charge hack descriptien was A Yes. 0 And A Okay. What A It It It says informa1 descripticn is A That And dces say it's A Yes. It's A Yes. And A ND. Then? t1 a. DE i t} lacement of Jack Butler, cerrect? in I guess we?re in April, 0037. ppened to that cne, sir? charged back. n't say anything aheut a retainer dces it? Isn't that what the en ccllecticn. what the descripticn here is, yes. we have 0038 and that has, that meme etainer, ccrrect? retainer? sir? was net charged back was it, have 0040, $2,500 that was charged back, 18:14 FAH JDHH 0333035 53 1 ccrrect? 2 A Yep 3 It cesun*t say it was a retainer, dees it? It 4 says, recerds sea 5 A Cerrec 6 And tlen we have 0045, $13,000. And deesn't shew 7 that was charge: back, dces it? a A Ne. Ircuse me, ne. 9 0 Se st uhat peint we?ve gene threugh, in May and 10 June we didn?t twve anything, ccrrect? 11 A That?: ccrrect. 12 But t]*n in July twe retainers were 13 $2,473 and You see that? 14 A YES. 15 And i] August a retainer fer $4,320 was recerded, a 15 cerrect- 17 A Yes. 13 These ere alsc retainers, again retainers that 19 are being rectrc-d intc inceme en the date the inveice gees 20 cut, cerreet? 21 A Yes. 22 0 New M. Garvey in July and August cf 2000 was 23 the CPA deing financial statements fer the eempany? 24 A I?m nc- sure Yeu'rt net? 25 Pm I 11f14f201310214 FAH 4101033002? JDHH 0000 034x?035 54 A N0. I believe it was Mr. Kerr, but I eeuld be, or Ms. Andrew, cuse me Well c:n we confirm that? Can I have JKB, please? The fin ncial statements. I'm gcing tc shew ycu what?s been mark and JK3C. Yen A Okay. And cf Jane A Yes And fer the cempan A 0 Ms. And statements far A Dces dcesn?t say. Thar repcrt cn it,r A ND. And A If eutside acceur All financial rep: rd and is already in evidence as JKBA, JKBB I these? se are the financial statements for the luly and August 2000, right, sir? June was dcing the financial statement as Andrew. July was dcing the financial is me ccver sheet here. It doesn?t have a cempilatien shculd, shculdn't it? provided it for the ccmpany as an t. eht. And are ycu aware that was a previded the ccmpany by Ms. Andrew? PEHEFDI Hansen-m FURL-12091 11f14f2 3 13 13:41'31'83832? 55 A I hawe he idea Hew ahnut September, excuse me, the menth ef August, whe lhe CPA whe did the financial statement? A Lis? -:drew. And tn t?s the same Lisa Andrew that yeu interviewed as E: cerrect? A Yes. And Of 331, SEI (?nm A Cerrec And f1 qualified certi' A As a: And j] retainers in were inveiced. A MR. switch gears THE yeu te finish MR. THE minutes until Yes, AK i .:ed public Yes, I appreciate that. RT: At 10:30. Se it's new twenty :00. We'll stand in recess until 11:00 rt cf yeur investigaticn inte retainers, same Lisa Andrew whe became the President dihle), cerrect? .m all the infermatien yeu had was a well acceuntant, wasn't she? as I knew. :t like Mr. Kerr she recerded these menths when they were earned, when they Idn't she? .PACH: Yeur Hener, if I may I?m geing tc Would this he a cenvenient time tc? It weuld be. I actually wanted :t line befere we teek the recess.