Joseph LaForte

WWW.KLWREPORTERS.COM

Page 1

 IN THE UNITED STATES DISTRICT COURT

 FOR THE EASTERN DISTRICT OF PENNSYLVANIA

- - - - - - - - - - - - - - - - -

HMC INCORPORATED, et al., :CIVIL ACTION

 :NO. 19-3285

 Plaintiffs,:

 vs. :

 :

COMPLETE BUSINESS SOLUTIONS :

GROUP, INC., et al., :

 :

 Defendants.:

- - - - - - - - - - - - - - - - -

 - - -

 THURSDAY, MARCH 5, 2020

 - - -

 Oral deposition of JOSEPH LaFORTE,

taken pursuant to notice, held at WHITE AND WILLIAMS,

1800 One Liberty Place, 1650 Market Street,

Philadelphia, Pennsylvania, 19103 commencing at

11:17 a.m. before Shauna L. Detty, Court Reporter -

Notary Public there being present.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 1 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 2

1 A P P E A R A N C E S:

2 ON BEHALF OF THE PLAINTIFFS:

 JUSTIN PROPER, ESQUIRE

3 WILLIAM FEDULLO, ESQUIRE

 SHANE HESKIN, ESQUIRE

4 WHITE AND WILLIAMS

 1800 ONE LIBERTY PLACE

5 1650 MARKET STREET

 PHILADELPHIA, PENNSYLVANIA 19103

6 Telephone: 215.864.7000

 Email: Properj@whiteandwilliams.com

7

8 ON BEHALF OF THE DEFENDANTS

 BRETT A. BERMAN, ESQUIRE

9 FOX ROTHSCHILD, LLP

 101 PARK AVENUE, 17TH FLOOR

10 NEW YORK, NEW YORK 10178

 Telephone: 212-878-7945

11 Email: Bberman@foxrothschild.com

12

13

14

15

16

17

18

19

20

21

22

23

24

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 2 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 3

1 I N D E X

2 WITNESS

JOSEPH LaFORTE

3 (Witness sworn.)

4 DIRECT EXAMINATION BY PAGE

5 Mr. Proper 4

6 E X H I B I T S

7 NUMBER DESCRIPTION PAGE

8 LaForte-1 5/31/18 Merchant Agreement 27

9 LaForte-2 Par Funding About Us Page 43

10 LaForte-3 Declaration of Lisa McElhone 50

11 LaForte-4 5/3/19 E-mail Exchange 82

12 LaForte-5 12/19/18 Agreement 87

13 LaForte-6 2/27/19 Agreement 87

14 LaForte-7 Bank Statements 87

15 LaForte-8 HMC, Inc. Funding Payment History 94

16 LaForte-9 Text Messages 119

17 LaForte-10 5/2/19 E-mail Exchange (2 pages) 125

18 LaForte-11 5/2/19 E-mail Exchange (4 pages) 129

19

20

21

22

23

24

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 3 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 4

1 - - -

2 (It is agreed by and between counsel

3 that reading, signing, sealing, filing, and

4 certification are hereby waived and all objections,

5 except as to the form of the questions, are reserved

6 until the time of trial.)

7 - - -

8 ...JOSEPH LaFORTE, after having been first duly

9 sworn, was examined and testified as follows...

10 - - -

11 DIRECT EXAMINATION

12 - - -

13 BY MR. PROPER:

14 Q. Good morning, Mr. LaForte.

15 A. How you doing?

16 Q. We're here for your deposition in a lawsuit

17 between my client, HMC Incorporated, et al., versus

18 Complete Business Solutions Group Incorporated, et al.

19 I'm going to be asking you some questions today about

20 some of the issues that pertain to this lawsuit. If

21 there's a point in time you need to take a break for

22 some reason, just let me know and I'll accommodate

23 that. I just ask that you answer any questions that

24 are pending at the time of the request.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 4 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 5

1 Otherwise, if you don't have any

2 questions, are you ready to proceed?

3 A. Yup.

4 Q. Complete Business Solutions Group, is that a

5 d/b/a for Par Funding?

6 A. Yes.

7 Q. And is Par Funding a corporation? Do you know

8 if they're incorporated?

9 A. You just said it's a d/b/a, right?

10 Q. Yeah. Is --

11 A. How could a d/b/a be a corporation?

12 Q. Is Complete Business Solutions Group a d/b/a

13 for Par Funding or is Par Funding a d/b/a for --

14 A. I just answered you. It's CBSG d/b/a Par

15 Funding.

16 Q. I was confused by --

17 A. You got to read this before you come, though.

18 You got to be on point. You got to know what you're

19 doing. So come on.

20 Q. When was CBSG incorporated?

21 A. I don't know.

22 Q. What state was CBSG incorporated in?

23 A. I'm not positive.

24 Q. What's your understanding as to where CBSG was

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 5 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 6

1 incorporated?

2 A. I don't know. I'm not the lawyer for the

3 firm.

4 Q. Do you have any ownership interest in CBSG?

5 A. No.

6 Q. Are you an officer of CBSG?

7 A. No.

8 Q. Have you ever been an officer of CBSG?

9 A. Nope.

10 Q. Did you -- were -- strike that.

11 Were you involved in the formation of

12 the company?

13 MR. BERMAN: Objection to form.

14 But you can answer.

15 THE WITNESS: I don't know how to

16 answer that question.

17 BY MR. PROPER:

18 Q. Are you one of the founders of the company?

19 A. No.

20 Q. Who is the founder of the company?

21 A. I don't know what the word "founder" means.

22 It can mean a lot of different things. I don't want to

23 answer the question incorrectly.

24 Q. Did you provide any capital of your own when

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 6 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 7

1 the company was formed?

2 A. No.

3 Q. Do you know what capital was used to form

4 CBSG?

5 A. No.

6 Q. So just to be clear, you did not make any form

7 of capital contribution to start CBSG?

8 A. No. You just asked that.

9 Q. Did your wife make any capital contribution --

10 A. I can't speak for my wife.

11 Q. I understand you can't speak for your wife,

12 but, to your knowledge, do you know whether or not your

13 wife, Lisa McElhone, provided any monies to start CBSG

14 back in 2012?

15 A. I don't know. I can't remember what I -- what

16 I did last week. I wouldn't know if she put money in

17 or didn't put money in. And I don't see how it's

18 relevant to this case right now.

19 Q. Okay. Whether it's relevant or not is a

20 separate issue. I'm just asking you whether or not you

21 have a recollection one way or another whether or not

22 your wife provided any monies to form the company.

23 A. We can talk about the Yankees, too. I used to

24 play professional baseball. You want to talk about the

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 7 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 8

1 Yankees? I don't know. We went over the same

2 questions last time I was here, so I guess you can just

3 read that deposition.

4 Q. Whose idea was it to start a company that was

5 specializing or would specialize in merchant cash

6 advances?

7 MR. BERMAN: Objection.

8 THE WITNESS: I can't talk about ideas.

9 I don't know anybody's ideas or anybody's thoughts. If

10 you want me to testify about somebody's thoughts or

11 ideas, that would be ridiculous.

12 BY MR. PROPER:

13 Q. Did you have any role in the concept that CBSG

14 would provide merchant cash advances to businesses?

15 MR. BERMAN: Objection.

16 THE WITNESS: I don't know how to

17 answer the question.

18 BY MR. PROPER:

19 Q. Do you know what a merchant cash advance is?

20 A. Sure.

21 Q. Did you know what a merchant cash advance was

22 in 2012?

23 A. No.

24 Q. When is the first time that you heard the

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 8 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 9

1 phrase "merchant cash advance"?

2 A. I don't recall. It's too long ago.

3 Q. Did you have any involvement in CBSG when the

4 company was initially formed in 2012?

5 A. What kind of -- I don't know. I don't know

6 the -- I don't know what you mean.

7 Q. Involvement of any kind --

8 A. I'm an independent operator. Remember, we

9 went over that in the last deposition. I'm an

10 independent sales operator for another entity. So you

11 keep talking to me about Par Funding and CBSG when I

12 don't work there, so I don't know. I worked for

13 Recruiting and Marketing Resources, same as my last

14 testimony, and the scope of how these guys started the

15 company is, you know -- I don't know what their

16 thoughts were or what their ideas were.

17 Q. The initial forms that CBSG used when they

18 advanced funds to businesses back in 2012, did you have

19 any involvement in creating those funds?

20 MR. BERMAN: Objection.

21 MR. PROPER: Strike that because I

22 used -- I botched the word.

23 BY MR. PROPER:

24 Q. When CBSG started funding businesses in 2012,

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 9 of 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 10

1 did you have any role in creating the forms that were

2 used for those funding transactions?

3 MR. BERMAN: Objection.

4 You can answer, if you understand.

5 THE WITNESS: I don't understand.

6 BY MR. PROPER:

7 Q. Back in 2012, was the business of CBSG similar

8 to what it does now?

9 MR. BERMAN: Objection.

10 You can answer, if you understand.

11 THE WITNESS: I don't think so. Every

12 day, it changes. The products change, everything

13 changes on a day-to-day basis. Similar? I mean,

14 you've been a lawyer for how many years? It's similar.

15 I'm sure that the scope of the work that you guys do is

16 different. Things change. So I don't know how to

17 answer the question appropriately.

18 BY MR. PROPER:

19 Q. Are you familiar with the forms that CBSG used

20 in 2012 to fund advances to businesses?

21 A. I would not remember what they used in 2012 or

22 any other lender, what they used in 2012.

23 Q. Were you involved in advances made by CBSG to

24 businesses in 2012?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 10 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 11

1 A. You asked me that already. No.

2 Q. And when I say "were you involved," I don't

3 mean in an employee/employer capacity. I mean were you

4 involved as an ISO or in any way, shape or form with

5 transactions that CBSG had with businesses?

6 A. I can't remember what I closed in 2012 with

7 any company. CBSG, Par Funding, Yellowstone, On Deck

8 Capital, I couldn't remember what --

9 Q. When is the first time that you started acting

10 in a sales capacity for CBSG, year?

11 A. I don't act in a sales capacity for CBSG. I

12 act in a sales capacity for Recruiting and Marketing

13 Resources.

14 Q. When is the first time that in your capacity

15 as an employee of Recruiting and Marketing Resources

16 you started doing some business on behalf of Par

17 Funding?

18 MR. BERMAN: Objection.

19 If you understand. I mean, there's a

20 lot of problems with the question.

21 THE WITNESS: Repeat the question.

22 BY MR. PROPER:

23 Q. When is the first time that Recruiting and

24 Marketing Resources did some work for Par Funding?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 11 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 12

1 A. How do you mean -- what kind of work?

2 Q. Any kind of work.

3 A. I don't know -- I don't know how to answer the

4 question, work.

5 Q. Well, what do you currently do in your

6 capacity with Recruiting and Marketing Resources on

7 behalf of Par Funding?

8 MR. BERMAN: Objection.

9 You can answer, if you understand.

10 THE WITNESS: The same as I explained

11 last -- in the last deposition. If a -- I source deals

12 for many different companies. I send deals to whomever

13 I think would fit the client's needs. In that

14 capacity, I have a relationship with many different

15 lenders.

16 BY MR. PROPER:

17 Q. Including Par?

18 A. Many different lenders, including Par.

19 Q. When did you start sourcing deals for Par?

20 A. I don't recall.

21 Q. Were you sourcing deals for Par in 2012?

22 A. I don't recall.

23 Q. Was Par providing merchant cash advances in

24 2012, to your knowledge?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 12 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 13

1 A. You'd have to ask Par.

2 Q. So you don't know?

3 A. You'd have to ask Par.

4 Q. Is Par providing merchant cash advances today

5 to merchants?

6 MR. BERMAN: Objection; irrelevant.

7 Don't answer.

8 Today is absolutely irrelevant to this

9 case. You know the relevant time period, which I let

10 you go a lot further than I wanted to, is February 2018

11 to October 2018.

12 Don't answer about today.

13 BY MR. PROPER:

14 Q. Mr. Berman is referring to a court order that

15 only pertains to a 30(b)(6) deposition, so --

16 MR. BERMAN: We don't agree. Call the

17 judge.

18 MR. PROPER: Okay. I'm not going to

19 call the judge. You continue, just advise your client

20 not to answer, but I will reserve the right to seek

21 sanctions from The Court.

22 MR. BERMAN: Do what you have to do,

23 whatever you want.

24 MR. PROPER: Thanks, bro.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 13 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 14

1 MR. BERMAN: Call the judge. He knows

2 we're at this deposition. It's court ordered.

3 MR. PROPER: I understand. And you

4 have the order and instructions. I'm not bothering the

5 judge again. He's laid out the parameters and his

6 discovery order that he issued yesterday was limited to

7 a 30(b)(6) deposition. It has nothing --

8 MR. BERMAN: Take whatever position you

9 want.

10 MR. PROPER: Please don't interrupt me.

11 It has nothing to do with today's deposition.

12 MR. BERMAN: We don't agree, but that's

13 fine. Take whatever position you want. You're free to

14 call the judge. He's here today for the hours that

15 were designated per a court order. We're pretty clear

16 on what the case is about. Today is absolutely

17 irrelevant to this case.

18 BY MR. PROPER:

19 Q. Was CBSG providing merchant cash advances to

20 businesses in 2019?

21 MR. BERMAN: Up until October of 2019,

22 you can answer.

23 MR. PROPER: That's not my question.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 14 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 15

1 Q. Was CBSG providing merchant cash advances to

2 businesses in 2019?

3 MR. BERMAN: Same objection.

4 THE WITNESS: I don't know.

5 BY MR. PROPER:

6 Q. Has CBSG, to your knowledge, ever provided a

7 merchant cash advance to a business?

8 A. Of course.

9 Q. Do you know when CBSG first began providing

10 merchant cash advances to small businesses or any

11 business?

12 MR. BERMAN: Objection.

13 You can answer.

14 THE WITNESS: Say the question again.

15 BY MR. PROPER:

16 Q. Do you know when CBSG first began to provide

17 merchant cash advances to businesses?

18 A. No. You'd have to ask CBSG.

19 Q. Do you know whether CBSG has changed the

20 structure of its transactions with businesses since you

21 started sourcing deals for them?

22 A. What transaction?

23 Q. Any transaction with a business that you

24 sourced in your capacity as an employee of Recruiting

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 15 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 16

1 and Marketing Resources.

2 MR. BERMAN: Objection. Not a proper

3 question.

4 But you can answer.

5 THE WITNESS: There's many different

6 products and services that CBSG offers and I'm sure

7 they change their products and services on a day-to-day

8 basis. Similar to White & Williams, how you guys

9 change your products and services and employees, too.

10 So I'm sure, as a corporation, they change their

11 products and services.

12 BY MR. PROPER:

13 Q. Okay. So what products and services were

14 offered to businesses by CBSG in 2019?

15 A. I don't have -- I don't speak for the company.

16 I don't know all the products and services.

17 Q. Can you give me an example of some of the

18 products and services that CBSG offered to businesses

19 in 2019?

20 A. The one with -- the one your client took from

21 HMC, we can talk about that.

22 Q. Okay. Can you give me some examples of

23 products and services other than the type of product

24 that was issued to my client?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 16 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 17

1 A. No, I'm not going to speak on behalf of

2 CBSG/Par Funding.

3 Q. Okay. So with respect to deals you sourced

4 with CBSG, were there instances where you were involved

5 in transactions that did not involve a merchant cash

6 advance?

7 MR. BERMAN: Objection.

8 You can answer.

9 THE WITNESS: Yes.

10 BY MR. PROPER:

11 Q. What other products and services that you were

12 involved with did CBSG offer to businesses?

13 A. Invoice factoring, collateral. Many different

14 products and services that they could offer. It

15 depends.

16 Q. What do you mean by "collateral"?

17 A. Collateralized product obligations, invoice

18 factoring. All different types of products that people

19 could expand their businesses with.

20 Q. Can you just explain to me how a

21 collateral-based transaction would work with CBSG?

22 A. I'm not good at them. I can't explain it to

23 you.

24 Q. Can you explain to me how an invoice factoring

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 17 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 18

1 arrangement from CBSG differs from a merchant cash

2 advance from CBSG?

3 A. Well, I'll try. Specific receivables are

4 different than future receivables. In the case of your

5 client, there were specific receivables. So we help

6 clients grow their businesses. We take a specific

7 receivable. We finance the customer in order for him

8 to obtain the business. They go and procure the

9 receivable and they're supposed to give us back the

10 proportionate amount of that receivable in order for

11 them to enhance their business.

12 Q. Were all of the transactions with my client

13 invoice factoring arrangements?

14 A. I wouldn't know.

15 Q. Did you do anything to prepare for today's

16 deposition?

17 A. No.

18 Q. Did you have any involvement with the

19 different transactions that my client entered into with

20 CBSG?

21 A. I wouldn't bother reading it.

22 Q. I'm sorry?

23 A. I didn't even bother reading it.

24 Q. Yeah, I'm just -- now we're talking about your

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 18 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 19

1 memory. Do you have any recollection of having a

2 personal involvement with any of the different

3 transactions that my client entered into with CBSG?

4 MR. BERMAN: Objection.

5 But you can answer, if you understand.

6 THE WITNESS: Your client -- the

7 initial -- the initial transactions, I did have an

8 involvement in. Kara was -- who your client -- client

9 by name -- Kara DiPietro was a friend. I was -- helped

10 her immensely grow the business. We identified

11 specific receivables. We purchased those specific

12 receivables. We went on websites and transferred those

13 receivables into our name.

14 And over time and years, the

15 relationship blossomed. She -- we let our guard down a

16 little bit and we didn't actually take those

17 receivables. We only put them on the contract. And

18 here we are today without our share of that specific

19 receivable, somewhere to the tune of $3 million. So

20 your client came to our office unsolicited. We invoice

21 factored her receivables. When the invoice came in,

22 she kept all the money. So that's -- that's how we're

23 in the situation we're in now.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 19 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 20

1 Q. So when there's an invoice factoring

2 arrangement like the one you described and the

3 agreement states, for example, that you're taking

4 10 percent of a specific invoice, how do you go about

5 ensuring that you're only taking 10 percent of a

6 specific invoice as opposed to receivables from other

7 invoices?

8 MR. BERMAN: Objection.

9 If you can understand the

10 multi-compound.

11 THE WITNESS: I don't understand, but

12 I'll try to answer it.

13 BY MR. PROPER:

14 Q. Oh, if you don't understand, I wouldn't want

15 you to answer --

16 A. I'll try to answer it anyway.

17 On the contract, it has the specific

18 receivable. The nature of the contract in dispute of

19 the transaction was not to steal the money that was

20 supposed to come to us. Our share of the money, which

21 was that specific receivable for all her jobs, her

22 construction jobs, we gave her early payback options on

23 every single deal so in case that receivable came back

24 late, she would have a benefit.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 20 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 21

1 Q. So there's a specific invoice identified on

2 different agreements that you --

3 A. Well, she did.

4 Q. -- that CBSG purchased, correct?

5 A. She did, yes.

6 MR. BERMAN: Let him finish for her.

7 BY MR. PROPER:

8 Q. Were there specific invoices that CBSG

9 purported to purchase in different transactions?

10 A. Yes.

11 Q. And those invoices are identified on the

12 different agreements, correct?

13 A. Correct.

14 Q. And under the agreement, you were entitled to

15 take a certain percentage of the revenues that were

16 generated by those invoices, right?

17 MR. BERMAN: Objection to the "you."

18 But you can answer, if you can answer.

19 THE WITNESS: Yes, it's similar to how

20 you guys operate. So you guys work on contingency.

21 You guys put your time, effort in and cost into a

22 specific deal. I'm sure there's a contingency on this

23 transaction. You spend time/money for this gentleman

24 and you to sit here, and this court reporter to sit

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 21 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 22

1 here, you spend money. At the end, if there's a profit

2 or when there's a profit, you can share in the profits.

3 And that's exactly what this was. The only difference

4 between me and you is I put up -- we put up actual

5 cash.

6 BY MR. PROPER:

7 Q. How does CBSG go about determining when monies

8 are coming in on a specific invoice that's

9 identified --

10 A. Says it on the invoice.

11 Q. So there's an invoice identified on an

12 agreement; I got it.

13 So how does CBSG determine when money

14 comes in on that invoice?

15 A. We don't.

16 Q. So how do you know when to take money?

17 A. It's a daily ACH. So the balance comes off

18 the amount of the invoice. So if you read the

19 agreements, you can know. It comes off the amount. So

20 it's a fixed payback, just our share.

21 So think of it like this: It's a

22 nonowner equity partnership with a company in order for

23 them to expand their businesses. It's very American,

24 unlike you guys would think. But if you help these --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 22 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 23

1 if these clients want to expand their business, we take

2 a proportionate amount of the receivable, which is our

3 principal, and a profit back on each receivable. It's

4 pretty simple.

5 BY MR. PROPER:

6 Q. I understand the construct.

7 A. Got it. So why did you ask me, then?

8 Q. I don't understand your answer. I understand

9 the concept.

10 A. I'm saying why did you ask me about the

11 construct if you -- if you understand it?

12 MR. BERMAN: Just answer his questions.

13 THE WITNESS: I'm trying.

14 MR. BERMAN: I know. No, no, and you

15 are. So just let him ask the questions for you.

16 BY MR. PROPER:

17 Q. So when CBSG purchases an invoice, is the

18 invoice -- strike that.

19 So when you purchase an invoice, are

20 there receivables already generated or are there

21 receivables that have to be collected or both?

22 MR. BERMAN: Objection.

23 THE WITNESS: I don't know.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 23 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 24

1 Q. Because here's my confusion, and I'm hoping

2 you can alleviate it: If you're purchasing

3 receivables, are those receivables that have already

4 been received by the business or are they receivables

5 that the business has not yet collected?

6 MR. BERMAN: Objection.

7 You can answer, if you understand.

8 THE WITNESS: I don't know.

9 BY MR. PROPER:

10 Q. What's the definition of a receivable?

11 A. I don't even know what you're talking about

12 right now.

13 Q. Do you know what a receivable is?

14 A. If a job happens, which there's documents and

15 pictures and a whole bunch of things which we'll get

16 to, I'm sure, later down the road with your client's

17 deposition, there's documents that show the actual job

18 that needs to be done. The client doesn't have the

19 money to do the job.

20 Q. Because she hasn't been paid yet for it,

21 right?

22 A. Of course.

23 Q. Right. That's what I'm getting at.

24 A. Of course.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 24 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 25

1 Q. Right.

2 A. So we pick -- give her the money to go do the

3 job. And when the money comes back --

4 Q. Exactly.

5 A. -- we all make a profit.

6 Q. So this is my question: You, CBSG, enters

7 into an agreement with my client, right?

8 MR. BERMAN: Well, objection. Who's

9 the "you, CBSG"?

10 But you can answer, if that's a fair

11 question.

12 THE WITNESS: Uh-huh.

13 BY MR. PROPER:

14 Q. CBSG enters into a relationship with my

15 client, purchases a specific invoice, for which monies

16 have not yet come in, right?

17 MR. BERMAN: Objection.

18 BY MR. PROPER:

19 Q. That's what we just established, yes?

20 MR. BERMAN: Objection.

21 BY MR. PROPER:

22 Q. She needs money --

23 A. I'm assuming that.

24 Q. -- because she hasn't --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 25 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 26

1 A. I'm assuming that.

2 Q. -- gotten paid on the job.

3 A. I'm assuming that. What your client did with

4 their money, I don't know.

5 Q. Got it. So now you have an agreement, CBSG

6 has an agreement with my client to purchase receivables

7 that CBSG is hoping the business actually pays to my

8 client, right? The business that owes the receivables

9 pays?

10 MR. BERMAN: Objection. Ask a

11 question.

12 MR. PROPER: That's the construct.

13 MR. BERMAN: Is there a question?

14 BY MR. PROPER:

15 Q. Here's my question: You're only entitled to

16 take 10 percent of the receivables you purchase on a

17 specific invoice. Why are you taking a fixed payment

18 before the receivables come in?

19 MR. BERMAN: Objection.

20 THE WITNESS: That's incorrect. Those

21 are specific receivables that we owned and purchased.

22 Your client came unsolicited to our office and sold us

23 those receivables.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 26 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 27

1 Q. Let's use a specific example.

2 - - -

3 (Whereupon, a 5/31/18 Agreement has been

4 marked as Exhibit LaForte-1 for identification.)

5 - - -

6 MR. PROPER: You both have 5/31? Just

7 want to make sure I gave you the right one.

8 MR. BERMAN: By "5/31," what do you

9 mean?

10 MR. PROPER: The date of the agreement,

11 5/31/18.

12 MR. BERMAN: Oh, yeah. Why are these

13 not Bates stamped?

14 MR. PROPER: The ones that we printed.

15 MR. BERMAN: Right, but how do I know

16 this was produced in this case? Are you making a

17 representation on the record this has all been

18 produced?

19 MR. PROPER: Yes --

20 MR. BERMAN: Okay.

21 MR. PROPER: -- to the best of my

22 knowledge and belief.

23 BY MR. PROPER:

24 Q. Have you seen this document before today?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 27 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 28

1 A. Nope.

2 Q. Were you involved in the particular

3 transaction that's identified in LaForte-1?

4 A. I don't recall.

5 Q. On Page 2 of the agreement, it sets forth the

6 terms of what's titled a "Factoring Agreement"; do you

7 see that?

8 A. Uh-huh.

9 Q. And it looks like that the invoice in question

10 is 2946-04; do you see that on Page 2?

11 A. I see it.

12 Q. Do you know how much was owed on 2946-04?

13 A. I'm sure it's in her e-mails.

14 Q. Okay. What did CBSG do to determine what

15 monies were owed on invoice 2946-04?

16 A. Probably not enough.

17 Q. What did CBSG do to determine how much monies

18 have been paid in that invoice at the time this

19 agreement was executed?

20 A. I wouldn't know what CBSG did on any specific

21 invoice. I'm not an underwriter for the company.

22 Q. What does CBSG do, to your knowledge, to

23 determine when monies are paid on this particular

24 invoice, 2946-04?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 28 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 29

1 A. What? I don't understand.

2 Q. How does CBSG determine when monies are paid

3 to HMC on invoice 2946-04?

4 A. I don't know the answer to the question.

5 Q. Because under this agreement, CBSG's entitled

6 to take 10 percent of the receipts for this particular

7 invoice, correct?

8 A. Does it say that?

9 MR. BERMAN: Are you making that

10 representation?

11 BY MR. PROPER:

12 Q. I thought that's what you testified

13 previously, that it's your understanding that my

14 client --

15 A. Does that say that, though? You just mixed

16 that up, though. You said this specific receivable.

17 Then you said receipts purchased.

18 Q. I'm asking you, your understanding of this

19 agreement was CBSG buying an interest in this

20 particular invoice, 2946-04, or all of my client's

21 receivables?

22 A. I can't speak for CBSG, but I would -- I don't

23 know.

24 Q. So when you testified previously that CBSG was

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 29 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 30

1 acquiring a 10 percent interest in particular invoices,

2 does that apply to this transaction?

3 MR. BERMAN: Objection;

4 mischaracterization.

5 THE WITNESS: I didn't testify to that.

6 BY MR. PROPER:

7 Q. You didn't testify to that?

8 A. That CBSG bought 10 percent of the invoice?

9 Q. Right.

10 A. I don't know what that means.

11 Q. You don't know what buying 10 percent of a

12 particular receivable due to an invoice --

13 A. That's a holdback. It's not 10 percent of the

14 receivable. So, Jason --

15 Q. Justin.

16 A. Justin, whatever your name is.

17 If you're going to talk to me about

18 factoring agreements, you really have to be a little

19 bit more educated on what -- not 10 percent of the

20 receivable. The holdback is the 10 percent of the

21 client's income. That's what the holdback means. It's

22 not 10 percent of the invoice. So you really got to

23 educate yourself on the product. 10 percent means that

24 the client will, at minimum, pay 10 percent of their

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 30 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 31

1 monthly income in order to pay off the invoice.

2 Q. Where does it say that?

3 A. In the whole document. Read it.

4 Q. Where?

5 A. I don't know. I'm not a lawyer, but that's

6 what it is. 10 percent is right here. Daily specified

7 amount is 1907 on this invoice. So that means that

8 10 percent, the specific percentage is of the client's

9 income, which was analyzed by underwriting. So you're

10 asking me questions about underwriting that I can't

11 specifically answer on that specific day, but that's

12 what that manes.

13 Q. What are you -- what are you looking at to

14 determine that it's not 10 percent of the specific

15 invoice that's being calculated but 10 of my client's

16 income?

17 A. Because it's not. It's in the document.

18 10 percent of the income. Specified percentage,

19 10 percent. Future receivables. So future receipts of

20 seller's recourse. Seller's recourse, right? So

21 buying future receivables. In this specific case, she

22 pledges this invoice, 2946-04.

23 Q. Pledges it for what?

24 A. To pay back the amount that she borrowed. She

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 31 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 32

1 borrowed 173,000, I guess, right? Owes 27; is that the

2 purchase price?

3 Q. She pledges this invoice. So does that mean

4 that CBSG only gets paid when my client gets paid on

5 this invoice?

6 MR. BERMAN: Objection.

7 THE WITNESS: I don't know how they

8 collect it. I don't know that.

9 BY MR. PROPER:

10 Q. That's my question to you.

11 A. I don't know the answer to that. I'm the

12 originator. I don't know how to answer that, but I do

13 know how to read a contract.

14 So if your client was -- in this case,

15 on that specific day, told CBSG/Par Funding that she

16 makes approximately $2,000 a day, 20 days in a month, I

17 guess that's how much, guys. 40 grand a month,

18 10 percent of that would mean your client's income was

19 probably around $400,000 a month, 10 percent. So

20 that's how factoring works. Keep writing, guys, so you

21 can learn. So that's how -- that's how the contracts

22 work.

23 So on that -- any given day -- and, by

24 the way, your client does do $400,000 a month. As a

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 32 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 33

1 matter of fact, I received their bank statements a few

2 days ago looking for more cash advances and they're

3 doing $600,000 a month now. So I'm sure at that time,

4 when her business was at her height, they were doing

5 more than $400,000 a month. So that is a correct and

6 appropriate holdback.

7 Q. How does CBSG determine what a business's

8 income is?

9 A. I don't -- I don't underwrite for CBSG. I

10 just know how to read a contract.

11 Q. What is the -- what is the definition of

12 income in this agreement? I don't even see the word

13 "income."

14 A. I don't know.

15 MR. BERMAN: Objection.

16 BY MR. PROPER:

17 Q. What's the definition of income in this

18 agreement? Educate me.

19 A. I don't know. I don't know definitions of

20 income.

21 Q. Is there a definition of income in this

22 agreement, LaForte-1?

23 A. So if you're eluding to the fact that how much

24 of it is profit, it's irrelevant. It's future

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 33 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 34

1 receivables. It's right here. 10 percent, that is a

2 specified percentage. 10 percent of their income. She

3 must have proved out somewhere that she works more than

4 10 percent or I think her doors would probably be

5 closed at this point.

6 Q. 10 percent of what future receivable?

7 A. Well, her future receivables, plus this --

8 plus this invoice was pledged. This is a pledge. The

9 invoice is pledged.

10 Q. If you're purchasing 10 percent of future

11 receivables, you, being CBSG --

12 A. We're not purchasing 10 percent of future

13 receivables. You keep saying that. That's incorrect.

14 Q. What did you purchase --

15 A. We're buying future receivables. We're taking

16 back 10 percent of the client's income on a monthly

17 basis in order to pay back the money the client

18 procured.

19 Q. So what receivables were purchased on

20 LaForte-1?

21 A. I don't know.

22 Q. Just the receivables --

23 A. I told you I didn't even read this.

24 Q. I'm asking you to look at it now, please.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 34 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 35

1 Did CBSG just purchase receivables for

2 invoice 2946-04 or did it purchase all of my client's

3 receivables?

4 A. Maybe both.

5 MR. BERMAN: Objection.

6 BY MR. PROPER:

7 Q. I'm asking --

8 A. Maybe both.

9 Q. -- what did it do?

10 A. I don't know. I'm not CBSG. Maybe both.

11 Q. Well, looking at the agreement, you said you

12 can read the agreement and I'm basically saying I don't

13 understand it --

14 A. Maybe both.

15 Q. -- and I'm asking you to educate me.

16 A. I don't know. Maybe both. Ask them.

17 Q. I'm not asking maybes, could have, would have,

18 should have's.

19 A. I'm just saying --

20 MR. BERMAN: He's a fact witness. You

21 keep on asking him to testifying on behalf of --

22 COURT REPORTER: Hold on a second. I

23 can't get all of you talking over each other. So if

24 you can try to just slow down a little bit.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 35 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 36

1 BY MR. PROPER:

2 Q. Do you know what receivables CBSG purchased on

3 this particular transaction, LaForte-1?

4 A. I don't know. Why don't you look in the book

5 of gratitude that your client gave us, the big book of

6 gratitude when she came to our office, and look and see

7 which job it was because I don't know. There was 48

8 transactions. I don't know which specific receivables

9 this is, Number 1; and Number 2, I'm not an underwriter

10 for the company, so how would I know?

11 Q. And I still want to know your understanding as

12 to whether CBSG purchased invoice number 2946-04 or

13 they purchased something more than invoice 2946-04.

14 MR. BERMAN: Objection.

15 THE WITNESS: You keep asking me that.

16 I don't know.

17 BY MR. PROPER:

18 Q. You don't know.

19 And it's your understanding that the

20 10 percent daily specified amount of 190739 is

21 10 percent of my client's daily income?

22 A. Monthly income, not daily income.

23 Q. Got it.

24 A. Jason -- what's your name? Justin?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 36 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 37

1 Q. It doesn't matter.

2 A. Justin, you got to learn the business before

3 you represent these clients, especially if you're

4 taking money from them. It's 10 -- let me teach you.

5 It's 10 percent of the monthly income. So the judge

6 has -- I'm sure his time is very precious, as is ours.

7 So before we come to the depositions, you really got to

8 learn the business. 10 percent is a specified daily

9 amount according to how much the client is showing us

10 of how much they make on a monthly basis.

11 Q. Okay. So the 10 percent is the monthly gross

12 revenue?

13 A. 10 percent --

14 Q. Is it monthly gross revenue?

15 A. I'm not an underwriter, but it says 10 percent

16 gross -- I don't know.

17 Q. You don't know the --

18 A. I'm not an underwriter. I don't know. You're

19 asking me to formulate an opinion on how a company

20 underwrites. There's companies all over the United

21 States that underwrite differently. I don't know how

22 they come up with their decisions.

23 Q. So you don't know how CBSG underwrote this

24 particular transaction?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 37 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 38

1 A. I have no idea.

2 Q. Do you know what underwriter was involved in

3 this transaction?

4 A. No.

5 Q. Do you know who Dean Vagnozzi is?

6 A. No. Of course I know Dean Vagnozzi. You

7 asked me that last time. It was the same question.

8 Q. What does Dean Vagnozzi do on -- what does

9 Dean Vagnozzi do on behalf of CBSG?

10 A. Nothing.

11 Q. He doesn't promote for CBSG?

12 MR. BERMAN: Objection.

13 You can answer.

14 THE WITNESS: Dean Vagnozzi does

15 nothing -- when you say does Dean do anything -- Dean

16 Vagnozzi is not an employee of CBSG.

17 BY MR. PROPER:

18 Q. Does Dean Vagnozzi raise money for CBSG?

19 A. Yes.

20 Q. Okay. Do you know how much money Dean

21 Vagnozzi raised for CBSG in 2019?

22 A. No.

23 Q. Did Dean Vagnozzi raise any money for CBSG, to

24 your knowledge, in 2019?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 38 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 39

1 A. I wouldn't know. I don't know.

2 Q. Does Dean Vagnozzi have a contract with CBSG,

3 to your knowledge?

4 A. I wouldn't know that. I'm not in -- I'm not

5 in the legal department. I'm a sales rep for

6 Recruiting and Marking Resources. I wouldn't know if

7 Dean Vagnozzi has a specific contract. I know Dean and

8 that's --

9 Q. Did you introduce Mr. Vagnozzi to CBSG?

10 A. No.

11 Q. Do you know how CBSG and Mr. Vagnozzi first

12 met?

13 A. No.

14 Q. Do you know when Mr. Vagnozzi first started

15 raising monies on behalf of CBSG?

16 A. No.

17 Q. When did you first meet Dean Vagnozzi?

18 A. I don't remember.

19 Q. Did you meet him on -- at a golf course?

20 A. I don't remember.

21 Q. Did you ever tell Mr. Vagnozzi that you were

22 in a business of lending money?

23 A. I don't remember.

24 Q. Did you ever tell Mr. Vagnozzi that you were

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 39 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 40

1 the owner of CBSG?

2 A. I don't remember.

3 Q. Did you ever tell Mr. Vagnozzi that CBSG loans

4 money to businesses at 35 percent interest rates?

5 A. I don't remember.

6 Q. Does CBSG loan money to businesses at

7 35 percent interest rates?

8 A. There is no interest rates. It's not a loan.

9 So when you go back to this, Justin/Jason, this

10 document right here says specifically -- and this is

11 another thing you guys need to really take a look at --

12 it's a purchase of future receivables. It's not a

13 loan.

14 As a matter of fact, this has already

15 been brought up in about 230 different cases throughout

16 the United States, and all have been upheld. So for

17 you to say that this is a loan is just not true.

18 As a matter of fact, a judge in New

19 York, one of your partners just told him it could never

20 be a loan. So I -- if you are somehow insinuating that

21 these are loans, we can debate this all day, but what I

22 would suggest that you do is I suggest that you stop

23 pandering to the Courts and go to the legislative

24 branch of government and make it a law. And if you do

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 40 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 41

1 make it a law, I'm sure myself and all the other

2 companies would be happy to comply with the law.

3 I mean, you started to do that. You

4 started to go to the legislative branch of government

5 and they didn't do anything for you guys, but you

6 should stay that way. You're trying to try -- make a

7 law through the judicial branch of government and it's

8 wrong. So you're wasting time. This is not a loan.

9 It's a purchase and sale of future receivables. It

10 says it right here.

11 Q. Has Par Funding ever loaned money to

12 businesses, to your knowledge?

13 A. We don't loan money. We purchase future

14 receivables. I say "we." I said, "we." RMR, who I

15 work for, we go out and procure different receivables.

16 People sell their receivables the same way you sold

17 your receivables, your client sold their receivables to

18 you. Because, technically, if you win this case for

19 $3 million, that would be a receivable. You're putting

20 time in right now and you're spending money, which is a

21 good way of doing business. It's American. And you're

22 going to go sit here and this is going to be thousands

23 and thousands of dollars and when -- and if you ever

24 won this case, you would get a contingency fee on top

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 41 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 42

1 of the 30,000 you guys took from your client, by the

2 way, the 30,000 you charged the -- your client, Kara

3 DiPietro.

4 Q. Do you know if Par Funding has ever loaned

5 money?

6 A. We just went through all that.

7 Q. That's a no?

8 A. That's -- we just went through all that. So

9 don't tell me how to answer. Don't tell me what to

10 say. Don't ever tell me what to say. Watch your

11 mouth. It's enough.

12 Now, I got a question for you. When is

13 it okay for a client to take a cash advance?

14 MR. PROPER: Can you mark this, please.

15 THE WITNESS: When is it okay for a

16 client to take a cash advance? Is it okay to get you

17 paid? Because you dimwits, your client took a cash

18 advance in order to pay you last month. Did you tell

19 the judge that? Your client went out, borrowed $50,000

20 from a cash advance company and then wired the money to

21 White & Williams. So it's okay when you guys -- the

22 hypocrisy that you guys -- the fraud and the hypocrisy

23 that you guys portray is ridiculous.

24 So you, Justin, Jason, whatever your

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 42 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 43

1 name is, in your Ivy League suit, just took $50,000

2 from a cash advance company, put it in your escrow

3 account or wherever you put it here. I think you

4 should recuse yourself from the case if that's true.

5 Did you take a cash -- did you take money from

6 Ms. DiPietro in the form of cash advance?

7 MR. PROPER: Can you mark that as

8 Exhibit 2, please.

9 - - -

10 (Whereupon, a Par Funding About Us Page has

11 been marked as Exhibit LaForte-2 for identification.)

12 - - -

13 BY MR. PROPER:

14 Q. Have you ever seen Exhibit 2 before from Par

15 Funding's Facebook page?

16 A. Par Funding, I don't even know if it has a

17 Facebook page.

18 Q. I'm representing to you that I printed this

19 off of Par Funding's Facebook page.

20 MR. BERMAN: Did you produce this in

21 this case?

22 MR. PROPER: I don't know if it's been

23 requested and I don't know that it matters. I'm asking

24 the witness a question about the Par Funding --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 43 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 44

1 THE WITNESS: I've never seen it, but

2 Facebook -- anybody can make a Facebook page for any

3 different business. I've had -- I've had my own name,

4 five people with my own name. You can put anything on

5 Facebook. This is not even a -- I don't even want to

6 look at this. This isn't an appropriate document. I

7 can make a Facebook page today for White & Williams and

8 put this on there right now. So this is -- I don't

9 know. Why am I looking at this?

10 BY MR. PROPER:

11 Q. Has Par Funding ever represented to the public

12 that Par Funding is not a merchant cash advance

13 company, to your knowledge?

14 A. I wouldn't know what Par Funding represents

15 because I don't work for Par Funding.

16 Q. Okay. Do you know if Par Funding ever

17 represented on its Facebook page as shown on Exhibit --

18 A. I don't even know about Par Funding's Facebook

19 page. I don't even have a Facebook page.

20 Q. Can you take a look --

21 A. I don't even know how to use Facebook. I

22 don't even know what Facebook is.

23 Q. Can you take a look at Exhibit 2 where it

24 states, "Loan size, 5,000 to $150,000"; do you see

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 44 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 45

1 that?

2 A. Yup.

3 Q. Do you see where it says, "About us: Par

4 Funding's goal is to get you the working capital you

5 need to run and grow your business and to do it while

6 providing the highest degree of personal professional

7 services"?

8 A. I'll answer the question if you tell me if one

9 of the corporate members of our company and our

10 compliance department approved this. Before that, I'm

11 not going to answer any questions about this garbage

12 right here that anybody, a competitor, anybody, you,

13 any of your clandestine operations could have put this

14 on my website. That is not a document that I'll even

15 answer to because it's on Facebook.

16 Q. What was your role --

17 A. Is Facebook an official corporate website? Is

18 that what you're saying?

19 Q. What was your role with Par Funding's Facebook

20 page in 2012?

21 A. Facebook. We're talking about Facebook now.

22 MR. BERMAN: Do you have any role with

23 Par Funding's Facebook page is the question.

24 THE WITNESS: I don't have Facebook. I

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 45 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 46

1 don't know how to use Facebook.

2 BY MR. PROPER:

3 Q. Who is the compliance person --

4 A. Do I look like a Facebook on here?

5 Q. Who is the compliance person that Par Funding,

6 in 2012, that would have been responsible --

7 A. I don't know any employees of Par Funding.

8 I'm not going to testify of things I don't know about

9 because I won't insult the judge.

10 Q. If you could just let me finish my question

11 because --

12 A. I have a question for you. Did you take

13 $50,000 in cash advances?

14 Q. In 2012, do you know who was responsible for

15 compliance at CBSG?

16 A. Didn't we just answer that?

17 MR. BERMAN: You don't know, so you can

18 say it again.

19 THE WITNESS: I don't know.

20 BY MR. PROPER:

21 Q. How many employees did CBSG have in 2012?

22 A. Can we cut this short? I don't know how many

23 employees CBSG has or didn't have. I don't know.

24 Q. In 2018, what role -- strike that.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 46 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 47

1 In 2019, what role did Lisa McElhone

2 have in CBSG?

3 A. I don't know.

4 Q. Was Ms. McElhone the president of CBSG in

5 2019?

6 A. I don't know.

7 Q. Did Ms. McElhone work for CBSG in any capacity

8 in 2019?

9 A. I don't know anything about any of these

10 questions about CBSG. I don't work for CBSG. I work

11 for Recruiting and Market Resources.

12 Q. Yeah, I'm just wondering if you --

13 A. We went over that already.

14 Q. Okay. I'm wondering if you knew --

15 COURT REPORTER: Hold on, please. I

16 cannot get you both at the same time. This transcript

17 is going to be a mess right now if this doesn't stop.

18 I'm trying my hardest, but this is getting really bad.

19 MR. PROPER: We'll give you a big tip

20 after.

21 COURT REPORTER: I know, but it doesn't

22 matter. It's making my work way worse.

23 BY MR. PROPER:

24 Q. If you could please try to let me finish my

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 47 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 48

1 question before you answer even if you anticipate it.

2 MR. BERMAN: And the same for you.

3 MR. PROPER: I have done that.

4 BY MR. PROPER:

5 Q. Can you please let me know whether you know

6 whether your wife, Lisa McElhone, had any involvement

7 with CBSG in 2019.

8 A. No.

9 Q. You don't know or she didn't?

10 A. I don't know any answers to these questions

11 about Par Funding/CBSG.

12 Q. Did your wife own any businesses in 2019?

13 A. I don't know what she owns and doesn't own.

14 Q. Okay. You ever hear of a company called

15 Lacquer Lounge?

16 A. No, I never heard of Lacquer Lounge.

17 Q. Is there a hair salon or nail salon that your

18 wife does own? I may have the name wrong.

19 A. Yeah, the name is Lacquer Lounge. Don't ask

20 me ridiculous questions. You're wasting time. She

21 owns a nail salon in Old City.

22 Q. When did she purchase the nail salon --

23 A. I don't know.

24 Q. -- in Old City?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 48 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 49

1 A. I don't know her business.

2 Q. If you could please try to let me --

3 A. We have a very --

4 Q. -- ask my questions.

5 A. We have a very private business relationship.

6 She doesn't tell me about her business. I don't tell

7 her my business. We have a very loving, beautiful

8 relationship, two dogs and a house. We don't talk

9 business.

10 Did you guys really take $30,000 from

11 Kara DiPietro? Do you guys -- do you idiots really

12 realize that she took a cash advance two days before

13 that in order to pay you guys? Do you guys know that?

14 Why don't they recuse themselves? Because you guys

15 benefited and guess what? I don't -- I'm not even

16 against it. I think it's American. God bless you

17 guys. You guys took a cash advance from -- your client

18 took a cash advance to pay you guys, big White &

19 Williams. You guys should do your homework a little

20 bit better before you take money from these clients.

21 Q. So just so we're clear, you are not a part of

22 the founding of CBSG, along with your wife, in 2012?

23 A. We answered that question earlier.

24 Q. Got it. And do you know if your wife was the

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 49 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 50

1 person responsible for accounting for CBSG in 2012?

2 A. We answered that question in the last

3 deposition.

4 Q. Did you run the factoring side of the business

5 for CBSG in 2012?

6 A. I never ran any business for CBSG. I work for

7 Recruiting and Marketing Resources.

8 Q. Go it. And do you know if your wife ceased

9 having any involvement with CBSG when she purchased

10 Lacquer Lounge in 2012?

11 A. I don't know.

12 MR. PROPER: Okay. Can you have this

13 marked, please, LaForte-3.

14 - - -

15 (Whereupon, a Declaration of Lisa McElhone

16 has been marked as Exhibit LaForte-3 for

17 identification.)

18 - - -

19 BY MR. PROPER:

20 Q. Do you have any recollection of a lawsuit that

21 your wife and yourself were involved with in the United

22 States Bankruptcy Court for the Southern District of

23 California, Santa Ana Division involving South Coast

24 Behavioral Health?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 50 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 51

1 A. No.

2 Q. Are you aware that there was an order for

3 contempt issued against you in connection with

4 violating a bankruptcy stay?

5 A. No.

6 Q. Okay.

7 A. I don't handle the league, I guess.

8 Q. Have you ever seen this declaration that was

9 submitted on behalf of your wife in connection with

10 this matter?

11 A. No. She doesn't show me her business.

12 Q. Okay. On Page 3, do you recognize that as

13 your wife's signature?

14 A. I don't know. I'm not going to -- I don't

15 know her signature.

16 Q. Okay. Are you aware that in this declaration,

17 your wife represented that, "Joseph LaForte and I are

18 married and live in Haverford, Pennsylvania"; is that

19 true?

20 A. Yeah.

21 Q. Okay. Your wife then represents in Paragraph

22 5, "We founded Complete Business Solutions Group d/b/a

23 Par Funding in or around 2012."

24 A. She just likes -- she probably just likes to

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 51 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 52

1 include me. And she's being very nice. For a nice

2 business that she started herself, she just likes to

3 include me. I am her husband.

4 Q. Okay. I just want to ask specifically about

5 this representation.

6 A. I don't think you should ask about my marital

7 life, though. I don't really see how that's relevant

8 here. What my wife says that we do together is

9 irrelevant. It's HMC, you should represent them. They

10 gave you 30,000 bucks.

11 Q. Ms. McElhone represents in Paragraph 5 that,

12 "We founded Complete Business Solutions Group, d/b/a

13 Par Funding in or around 2012"; is that a true

14 statement?

15 A. Whatever my wife says is a thousand percent

16 true.

17 Q. Okay.

18 A. So why don't we -- I'm not answering any of

19 these -- any more of these questions.

20 Q. Okay. So --

21 A. Whatever my wife says is true.

22 Q. Okay. So you did -- you were part of the --

23 A. Whatever my wife says is true.

24 Q. "Mr. LaForte ran the factoring side of the

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 52 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 53

1 business and I handled the accounting for less than a

2 year"; is that true?

3 A. Whatever my wife says is true.

4 Q. Okay. So just to be clear, you previously

5 testified under oath that you were not involved in any

6 aspect of CBSG's business and you repeatedly testified

7 to that. Your wife states in this declaration that you

8 ran the factoring side of Complete Business Solutions

9 Group's business. Which is true?

10 MR. BERMAN: Objection. That's not

11 what it says, so read the words.

12 BY MR. PROPER:

13 Q. "Mr. LaForte ran the factoring side of the

14 business." Did you run the factoring side of the

15 business?

16 A. Whatever my wife says is true.

17 Q. So that's true?

18 A. She wants me to feel -- if she wants me to

19 feel like she makes me feel good, it's similar to this,

20 Jason --

21 What's his name? Jason?

22 It's similar to your wife telling you

23 you look great today. It's just a nice compliment she

24 probably just gave me. She's very nice to me, my wife.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 53 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 54

1 I'm really not that good in business, but she really

2 does try to help me along and try to put me onto

3 equally -- coequal with her. It's very nice of her.

4 BY MR. PROPER:

5 Q. What were you doing, exactly, in 2012 when you

6 were running the factoring side of the business?

7 MR. BERMAN: Objection.

8 THE WITNESS: What does the

9 factoring -- does it even mean, "the factoring side of

10 the business"? What is the factoring side of the

11 business?

12 BY MR. PROPER:

13 Q. This is what your wife said. If you don't

14 understand what the factoring side of the business is,

15 then I guess you can't answer it.

16 A. I can't answer it.

17 Q. Okay. So when you said that it must be true

18 that you were running the factoring side of the

19 business, you can't really say if that's true or not,

20 you don't even know what factoring side means?

21 A. Not really, no.

22 Q. Okay. And then your wife states in Paragraph

23 6 that, "I hired Joe Cole, the current CFO of CBSG, to

24 replace me in 2012," do you know if that's true?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 54 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 55

1 A. I wouldn't know anything about her business.

2 Q. Okay. "At that time, I started a nail salon

3 called the Lacquer Lounge," and she puts the website

4 for Lacquer Lounge. Is that true, to the best of your

5 knowledge?

6 A. Whatever she says is a hundred percent true.

7 Q. Okay. And then she states in Paragraph --

8 A. Great place, too.

9 Q. And then she states in Paragraph 7, "I have

10 worked full time at the Lacquer Lounge since its

11 inception and have had no subsequent involvement in

12 CBSG despite the fact that I was never formally removed

13 as its president. Is that a true statement?

14 A. I don't know.

15 Q. Okay. Because Mr. Cole testified that he had

16 daily communications with your wife about running the

17 business and here your wife is saying that she has

18 nothing to do with the business. Do you know why

19 Mr. Cole would say that?

20 A. That's not what that says.

21 Q. What does it say?

22 A. That's not what it says.

23 Q. "I have had no subsequent involvement in

24 CBSG" --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 55 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 56

1 A. Subsequent involvement, what does that mean?

2 Q. It means after 2012, she hasn't been involved

3 in the business. That's what it means.

4 A. She was never formally removed as the

5 president. She could -- listen, I don't know -- I

6 don't know where you -- I don't even know -- I don't

7 even know where you're going with this line of

8 questioning. You have to ask these other -- these

9 other people. I don't even know what this is.

10 Whatever my wife says is true.

11 Q. So it's true that your wife has had nothing to

12 do with CBSG since she purchased Laquer Lounge?

13 A. I don't know.

14 Q. Got it.

15 A. Is that illegal? Is that illegal? You

16 can't -- you have to work in the Laquer Lounge, girl.

17 Is that illegal? Who the president is, who this and

18 that. This poor client, I feel bad for the 30,000 they

19 paid.

20 Q. Is your wife still the president of CBSG?

21 A. I don't know.

22 Q. What involvement, if any, did your wife have

23 with respect to the transactions with my client?

24 A. I don't know.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 56 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 57

1 Q. Did you attend an event hosted by Dean

2 Vagnozzi at the Sheraton Valley Forge Hotel last year?

3 A. Possibly. I went to -- I go to a lot of

4 events.

5 Q. Okay. How often do you go to fundraising

6 events that Dean Vagnozzi hosts on behalf of CBSG?

7 MR. BERMAN: Objection.

8 THE WITNESS: I don't know.

9 BY MR. PROPER:

10 Q. How many have you been to in the past two

11 years?

12 A. I couldn't -- I couldn't answer that question.

13 Q. More or less than one?

14 A. I don't want to lie, so I don't know.

15 Q. Okay. How many events can you think of, as

16 you sit here today, that you've been to that

17 Mr. Vagnozzi has hosted where he's tried to solicit

18 monies on behalf of CBSG?

19 A. I don't know.

20 Q. Have you been to any?

21 A. Yes.

22 Q. More or less than one?

23 A. I don't remember.

24 Q. Okay. Are you aware that we have video of you

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 57 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 58

1 speaking at one of these events?

2 A. Great.

3 Q. Have you seen the video?

4 A. No. I don't watch videos of myself.

5 Q. Last November, did you speak to a room full of

6 investors and potential investors trying to raise

7 monies on behalf of CBSG? Yes, no or you don't know?

8 MR. BERMAN: Don't answer the question.

9 It's October 2019.

10 MR. PROPER: You're directing him not

11 to answer the question?

12 MR. BERMAN: I am.

13 MR. PROPER: Okay.

14 BY MR. PROPER:

15 Q. With respect to the event in November of 2019,

16 did you represent to the room full of investors that

17 you were the owner of CBSG?

18 MR. BERMAN: Don't answer the question.

19 Call the judge.

20 MR. PROPER: Okay. I'm just going to

21 move for sanctions, but I'm going to establish --

22 MR. BERMAN: Do whatever you want.

23 MR. PROPER: -- how many questions

24 you're going to direct him not to answer.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 58 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 59

1 MR. BERMAN: Do whatever you want.

2 I've told you to call the judge at any time you want.

3 The judge made very clear --

4 MR. HESKIN: That's not how it works.

5 MR. BERMAN: -- the relevant time

6 period is October of 2019. As the judge made very

7 clear at the last hearing, he's available at any time

8 for these phone calls. Plus the basis for the

9 objection is a court order limiting the scope of

10 discovery in this case, so --

11 MR. PROPER: I'm going to say it again.

12 The order you're reading from is limited to a 30(b)(6)

13 deposition. It has nothing to do with this issue.

14 MR. BERMAN: We're very comfortable if

15 there's any confusion, call the judge. I welcome you

16 to do it.

17 MR. PROPER: I don't have confusion

18 because I'm able to read an order and what the

19 limitations and scope of that order is.

20 MR. BERMAN: Limitations in scope are

21 discovery in this case. You interpret it however you

22 want to interpret it.

23 MR. PROPER: I am. I will.

24 MR. BERMAN: We'll interpret it -- if

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 59 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 60

1 there's confusion, call the judge.

2 BY MR. PROPER:

3 Q. Have you ever represented to an investor or

4 potential investor of CBSG that you owned the company?

5 MR. BERMAN: Objection.

6 But answer, if you know.

7 THE WITNESS: No.

8 BY MR. PROPER:

9 Q. To your knowledge, have you ever --

10 A. I didn't represent that to anybody.

11 Q. Have you ever told anyone, to your knowledge,

12 that you are an owner of CBSG?

13 A. Doubt it, no. Maybe I bragged a little. Is

14 that what you're getting at, do I brag to people?

15 Q. I'm not asking whether you brag --

16 A. Do I brag around; is that what you're asking

17 me? Am I a braggart? No.

18 Q. Okay. Have you ever represented to an

19 investor or potential investor of CBSG at any time that

20 you owned the company?

21 A. No.

22 Q. Because that would be a lie, correct?

23 A. Would it be a lie?

24 Q. To say you own CBSG, that would be a false

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 60 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 61

1 statement, correct?

2 A. I just said that, right?

3 Q. Got it.

4 A. Yeah.

5 Q. You're agreeing with me, that would be a false

6 statement?

7 A. It would be -- it would also be a false

8 statement for you to say you don't take fees from my

9 clients. My clients, by the way. That would be a lie,

10 too, right?

11 Remember you said in the deposition

12 last time, Shane, you guys don't take the fees? You

13 took 30 grand from this lady. Is that a lie?

14 Q. Have you ever represented to an investor or

15 potential investor that you personally --

16 A. I don't remember every conversation I've ever

17 had with anybody. I talk to thousands of people. I

18 don't remember what I said and didn't say. Do I go

19 around saying I own Par Funding/CBSG? No. Do I own

20 Par Funding/CBSG? No. Those are the answers. So

21 we're wasting time.

22 Q. Just let -- if you could please let me finish

23 my question.

24 A. You want to eat up the retainer fees.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 61 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 62

1 Q. Have you ever represented to an investor or

2 potential investor that you personally contributed

3 $500,000 of your own money to start CBSG?

4 A. I don't know.

5 Q. Have you ever said that?

6 A. I don't know.

7 Q. You wouldn't say that because it's not true,

8 right?

9 A. When would I say it or why? Give me a case.

10 Who?

11 Q. I'm just asking --

12 A. I can answer the question. What's the name?

13 Who? I'm asking you who the guy is so I can answer it

14 properly. Maybe I don't even know what you're talking

15 about. Who's the guy? Who did I say it to so I can

16 answer it properly?

17 Q. I asked a question.

18 A. It's a general question. I don't know what I

19 said and didn't say.

20 MR. BERMAN: He doesn't know.

21 BY MR. PROPER:

22 Q. But there's no reason you would ever represent

23 to anyone --

24 A. I don't know what I said. I don't know.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 62 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 63

1 Q. Can I finish my question, please.

2 A. It's going to be "I don't know," so go.

3 Q. There would be no reason that you would ever

4 represent to an investor or potential investor of CBSG

5 that you contributed $500,000 --

6 A. I don't know.

7 Q. -- to start the company because --

8 A. I don't know.

9 Q. -- you've never contributed monies to start

10 the company, right?

11 A. I don't know.

12 Q. I thought you testified before you've never

13 contributed monies --

14 A. I don't know.

15 COURT REPORTER: Hold on a second.

16 BY MR. PROPER:

17 Q. Can I please finish my question.

18 COURT REPORTER: I can't keep going

19 like this. It's been the whole time. You know, I'm

20 only one person. I've been doing this 22 years. This

21 is really out of control.

22 BY MR. PROPER:

23 Q. Did you previously testify at this deposition

24 that you did not contribute any of your own money to

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 63 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 64

1 start CBSG?

2 A. That's correct.

3 Q. Okay. So, to your knowledge, have you ever

4 tried to deceive an investor by representing that you

5 did contribute your own money to start the business?

6 MR. BERMAN: Objection.

7 If you know.

8 THE WITNESS: Who?

9 BY MR. PROPER:

10 Q. Any investor.

11 A. Who?

12 Q. Any investor.

13 A. I don't know who. I don't know. I don't know

14 who these people are. I don't know what you're talking

15 about, so I can't answer the question.

16 Q. Do you know who an investor is?

17 A. Do I know what an investor is?

18 Q. Yes.

19 A. No. What's an investor? It can be a lot of

20 different definitions, an investor. What, venture

21 capital investor, equity investor, like your little

22 finance company you guys have invested in this deal?

23 MR. HESKIN: Just limit it to a person.

24 THE WITNESS: Let me answer your

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 64 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 65

1 question. Tell me who -- tell me who it is and I'll

2 answer the question.

3 BY MR. PROPER:

4 Q. I'm going to ask it differently. Have you

5 ever represented to any person that invested his or her

6 own money in a fund created by or on behalf of CBSG for

7 merchant cash advances that you were an owner of the

8 business?

9 MR. BERMAN: Objection.

10 THE WITNESS: He just objected, right?

11 MR. HESKIN: You can answer.

12 MR. BERMAN: You can answer, if you

13 know.

14 THE WITNESS: I don't know.

15 BY MR. PROPER:

16 Q. Did you ever or have you ever represented to

17 any individual that's contributed monies to a fund

18 created on or on behalf of CBSG for merchant cash

19 advances that you contributed your own money to start

20 the business?

21 A. How can -- how could -- how come --

22 Q. Why won't you answer my question?

23 A. Why won't you recuse yourself? You guys took

24 $30,000 from this client. The client got the money

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 65 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 66

1 from a cash advance and wired you the money. Why are

2 we here?

3 Q. Why won't you answer my --

4 A. For cash advances?

5 Q. Why won't you answer my question?

6 A. I have 50 times. And in the last deposition,

7 same question. So you're eating up the hours for the

8 client. Me, I don't care. This is like a brother to

9 me. I don't care, but you're wasting time. I don't

10 remember what I said. I don't know, but why don't you

11 ask -- why don't you answer the question? Why did you

12 take 30,000 from the client? The client got a cash

13 advance two days before that.

14 Q. Would there ever be a circumstance that you

15 would try to deceive someone that was interested in

16 investing money into CBSG by stating that you

17 contributed monies to form the business?

18 MR. BERMAN: Objection.

19 THE WITNESS: The only deception here

20 is your client coming to my office 50 times asking for

21 more capital. That's the only deception.

22 And the other deception is you probably

23 sent your client to go get another cash advance, by the

24 way, that guys -- hey, this guy testified in front of

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 66 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 67

1 Congress, Mr. Heskin here, that these cash advances is

2 the root of all evil. What you did was you probably

3 hooked up your client with a cash advance from me to

4 get you paid. So you're the hypocrisy. So stop asking

5 me questions that are hypocritical.

6 BY MR. PROPER:

7 Q. I still don't have an answer to my question.

8 MR. BERMAN: He's answered it three

9 times. He said "I don't know" --

10 MR. PROPER: He has not answered my

11 question.

12 MR. BERMAN: -- "I don't know. He has

13 not.

14 THE WITNESS: I don't know.

15 MR. BERMAN: He'll say "I don't know" a

16 third time.

17 THE WITNESS: I don't know.

18 BY MR. PROPER:

19 Q. That wasn't my question. You can't answer "I

20 don't know" to this because it's not a proper response.

21 What --

22 A. I can say anything I want. Don't you ever

23 tell me what to say. Watch your mouth. Don't ever

24 tell me what to say. Don't ever tell me to put words

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 67 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 68

1 in my mouth, you or you.

2 Q. Would there ever be a reason -- would there

3 ever be a reason why you --

4 THE WITNESS: Careful with me.

5 BY MR. PROPER:

6 Q. Are you threatening Mr. Heskin?

7 MR. BERMAN: Let's just stop and ask

8 the question.

9 THE WITNESS: No, because of your

10 mouth. Watch your mouth. Be a gentleman.

11 MR. BERMAN: Answer the question.

12 THE WITNESS: Be a gentleman. Your

13 tone -- the judge can't hear your tone, so don't set me

14 up, okay? Because I'm not a lawyer, but I'm smart

15 enough to know what's on the record and how it reads.

16 Your tone is out of line. Treat me with respect. I

17 came here on my own merit. I came here this morning to

18 waste more time and I don't need to be talked to like

19 this. So be careful with your mouth means be careful

20 with your mouth. That's what it means.

21 BY MR. PROPER:

22 Q. I've treated you with respect.

23 MR. BERMAN: No, you're raising your

24 voice.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 68 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 69

1 THE WITNESS: You're raising your

2 voice.

3 MR. BERMAN: You're treating him

4 disrespectfully. You're asking the same question over

5 and over. But ask a clear question, you'll get an

6 answer.

7 MR. PROPER: Your client called me or

8 my colleague or both a punk --

9 MR. BERMAN: Just ask a question.

10 MR. PROPER: -- but I'm disrespectful?

11 COURT REPORTER: I got to go off the

12 record. I'm taking a break.

13 MR. PROPER: You got it.

14 - - -

15 (Whereupon, the court reporter

16 requested a break and a break was taken.)

17 - - -

18 MR. PROPER: Just want to let the

19 record reflect that after the court reporter broke,

20 Mr. LaForte called me a fucking punk and he's leaning

21 across the table when he's answering questions and

22 pointing his finger at me in a way that I find to be

23 inappropriate and very aggressive.

24 MR. BERMAN: Okay. And let's make a

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 69 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 70

1 clear record with you screaming and hollering at him

2 across the table with your eyes bolting out of your

3 head. So records are made to be broken when you're

4 making stuff up. So let's continue.

5 THE WITNESS: And I double down, you

6 are a punk, so that's correct.

7 MR. BERMAN: When you keep on yelling

8 at the witness --

9 THE WITNESS: When you're yelling at me

10 and you're coming across the table at me.

11 MR. BERMAN: Let's just continue.

12 THE WITNESS: Because you wouldn't do

13 it if you weren't in the Ivy League room because you

14 would never do -- you would never behave that way.

15 That makes you a punk. Because if you weren't in this

16 room, you would never do that. That's why you're a

17 punk.

18 MR. PROPER: What would you do to me?

19 THE WITNESS: I'm not going to do --

20 that's why you're a punk. That's why you're a punk.

21 MR. PROPER: Why wouldn't I do it

22 outside of this room?

23 MR. BERMAN: We're not going further

24 than this.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 70 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 71

1 MR. PROPER: What's that?

2 MR. BERMAN: We're not doing it --

3 we're not doing any more on this. Let's just continue

4 with the questions or we'll stop the deposition and

5 tell the judge why we stopped.

6 MR. PROPER: I'm going to let the

7 record reflect because counsel has made statements

8 saying that I'm screaming and yelling, which is a

9 complete distortion of reality, I've been respectful to

10 Mr. LaForte this entire deposition. I raised my voice

11 for the first time in response to Mr. Berman in a

12 statement that he made, which I apologize for letting

13 Mr. Berman and Mr. LaForte get the better of me in that

14 moment. But Mr. LaForte, from the get go of this

15 deposition, has acted in a way that has been sarcastic

16 at the least, aggressive and threatening at the most,

17 and his repeated references to me as a punk --

18 THE WITNESS: No, you're a bully.

19 MR. BERMAN: Let's just -- let's

20 just -- let's just ask questions.

21 MR. PROPER: No --

22 MR. BERMAN: We're done with the

23 record.

24 MR. PROPER: -- I'm not. On and off

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 71 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 72

1 the record, I feel threatened; I do. I feel threatened

2 and maybe that's because I'm a punk, but I don't think

3 it's -- I've never had a deposition this way in 20-plus

4 years.

5 THE WITNESS: Because you're a bully.

6 Because you bully people all day and you're not used to

7 having somebody who stands up to you because you're a

8 bully. So what you do is you take money from my

9 clients, you take contingency fees from my clients, you

10 take money -- their clients take money for more cash

11 advances and you bully people around. That's why

12 you're depositioning weak people, so you have somebody

13 to say the truth about you, that you're a bully. And

14 your hypocrisy, by the way, is ridiculous. Your

15 client -- this client took another cash advance, you

16 realize that, and you wired it into your account. I

17 don't even know why I'm here. Shouldn't you guys

18 recuse yourself for that?

19 MR. BERMAN: Let's just ask questions.

20 We heard your record. We disagree with everything you

21 said. You've been yelling since the beginning, but it

22 doesn't matter.

23 THE WITNESS: I put up with more from

24 you in this deposition than I've ever had in my life.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 72 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 73

1 MR. PROPER: And the fact that

2 Mr. Berman is condoning his client's behavior rather

3 than correcting it only gives me --

4 THE WITNESS: I said no one corrects

5 me. He can't correct me. No one could correct me.

6 What do you mean? No one is going to correct me. He

7 can't correct me.

8 MR. BERMAN: Let's -- what I'm doing is

9 I'm asking you to ask questions at a deposition. It's

10 not about correcting. I believe you've been yelling.

11 Let's just move on and ask questions. That's what

12 we're here for.

13 MR. PROPER: I've got witnesses from

14 the start of the deposition.

15 MR. BERMAN: Do whatever you got to do.

16 Just ask questions.

17 MR. FEDULLO: I will represent on the

18 record that Justin's statement is true and Mr. Berman's

19 statement is inaccurate.

20 THE WITNESS: You work for the company.

21 I'm sure you -- I'm sure you say that on the record,

22 yes.

23 MR. BERMAN: We're wasting time. Ask

24 questions.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 73 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 74

1 BY MR. PROPER:

2 Q. What is CBSG's default rate in 2019?

3 A. I don't know.

4 Q. Have you ever represented to any investor or

5 potential investor that CBSG's default rate is 1 to

6 2 percent?

7 A. I don't remember.

8 Q. Do you know if anyone in your presence acting

9 on behalf of CBSG has represented that CBSG's default

10 rate is 1 to 2 percent?

11 A. I don't remember.

12 Q. What is CBSG default rate?

13 A. I don't know.

14 Q. Do you know if it's higher or lower than 1 to

15 2 percent?

16 A. I don't know. I don't work there. Are you

17 looking to invest in the company, asking me what the

18 default rate is?

19 Q. That's a good question.

20 A. Yeah.

21 Q. Do you have any monies invested in --

22 A. I don't.

23 Q. -- CBSG currently?

24 A. I don't.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 74 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 75

1 Q. Did you invest any monies in CBSG in 2019?

2 A. No.

3 Q. Have you ever represented to any investor or

4 potential investor that you have monies invested in

5 CBSG?

6 A. I don't recall.

7 Q. If you have never -- strike that.

8 Have you ever invested monies in CBSG?

9 A. No.

10 Q. If you've never invested in CB-- monies in

11 CBSG, then we can agree that there would be no

12 circumstance that you would be representing to

13 investors that you had invested money in the company?

14 A. So you're referring to -- let me teach you

15 about finance a little bit more, guys, okay? If you're

16 referring to retained earnings or any kind of retention

17 of earnings, the company can retain earnings without

18 actually putting up money.

19 COURT REPORTER: The company can what?

20 THE WITNESS: Can actually have

21 earned -- have retained earnings, which is money in the

22 company, without actually putting in money. So I

23 don't -- that's probably what you're referring to. So

24 if you're asking about investments, that's how it

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 75 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 76

1 works. There's a lot of different ways that companies

2 can make money. We could talk about that another time.

3 If you're not busy, come down to my office, I'll give

4 you a little lesson in finance. But retained earnings

5 are much different than an investment, right?

6 BY MR. PROPER:

7 Q. Well, what type of retained earnings do you

8 receive --

9 A. I don't know. I'm just letting you know.

10 Q. Do you receive retained earnings from CBSG?

11 A. I don't receive anything from CBSG except for

12 the money that I procure deals on as an independent

13 operator.

14 Q. You mentioned that Kara DiPietro was a friend

15 of yours, correct?

16 A. Uh-huh.

17 Q. When did you --

18 A. Yes, she was.

19 Q. -- first meet?

20 A. She was my friend.

21 Q. When did you first meet Ms. DiPietro?

22 A. I don't remember the day.

23 Q. Did you know Ms. DiPietro before she entered

24 into a relationship with CBSG?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 76 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 77

1 A. No.

2 Q. Were you the one that sourced an initial deal

3 between my client and CBSG?

4 A. I don't recall that.

5 Q. Do you know when my client first entered into

6 a business relationship with CBSG?

7 A. I don't remember.

8 Q. Do you know what the nature of my client's

9 business is?

10 A. Yes.

11 Q. What's your understanding?

12 A. Construction buildout.

13 Q. What does that mean, "construction buildout"?

14 A. What is a law firm? It's a SIC code, right?

15 You know what an SIC code is, Jason? Do you know what

16 an SIC code is?

17 Q. What's an SIC code?

18 A. Do you know? You should know. You're

19 defending a client. So if you're asking me what the

20 construction engineering or any of these things are,

21 you should know what your SIC code -- that's an SIC

22 code. You asked me what the business does. I gave it

23 to you -- I told you that's the SIC code. Go and look

24 it up. You have to do your homework before you come to

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 77 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 78

1 these things and know about the business, especially if

2 you're talking money from clients.

3 Q. What's an SIC code?

4 A. That's an SIC code.

5 Q. What is it?

6 A. You go look it up. I'm not doing your job for

7 you. You go look it up.

8 Q. You're not going to answer my question?

9 A. You look it up.

10 Q. You're not going to answer my question?

11 A. You look it up. I'm not going to do your job

12 for you. You got 30 grand. I didn't get 30 grand for

13 this.

14 Q. You're not going to answer that question?

15 A. You look it up. I answered the question,

16 which she does.

17 Q. What's an SIC code?

18 A. You look it up. Learn. Study. You guys pass

19 the bar exam and never study again.

20 Q. Think that's funny?

21 MR. BERMAN: I just want you to ask

22 questions.

23 MR. PROPER: I asked him what an SIC

24 code was.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 78 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 79

1 MR. BERMAN: You're raising your voice

2 to me again?

3 MR. PROPER: Because you're smirking,

4 you're smiling and you're --

5 THE WITNESS: You're obnoxious and --

6 COURT REPORTER: I can't get you all at

7 the same time.

8 MR. PROPER: Okay. It's not meant as a

9 threat.

10 MR. BERMAN: This is a deposition.

11 MR. PROPER: I understand that.

12 MR. BERMAN: Ask questions. Stop

13 raising your voice at me and staring at me across the

14 table. It doesn't intimidate me. Doesn't intimidate

15 me.

16 MR. PROPER: I'm not -- I'm looking at

17 you because we're having a dialogue.

18 MR. BERMAN: I have no reason to have a

19 dialogue with you. You're here to ask questions.

20 BY MR. PROPER:

21 Q. What's an SIC code?

22 A. Look it up. Do your homework.

23 Q. Is that a question?

24 A. If you're representing your client, you should

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 79 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 80

1 know what an SIC code is, Jason. Look it up.

2 Q. That's not my name.

3 A. We're not telling you. What's your name?

4 Justin? Justin, you should look it up. Look up what

5 an SIC code is and then you could figure out what your

6 client does for a living. It's your client. You don't

7 know what they do?

8 MR. PROPER: I'm postponing the

9 deposition. I've practiced law for 20 years. I don't

10 need to be treated in the way that I've been treated.

11 THE WITNESS: And I agree. And I've

12 never been spoken to like this in my life by you.

13 Never. No one's ever spoken to me like this.

14 MR. PROPER: Spoken to you like what?

15 I've asked you questions.

16 THE WITNESS: Loud and obnoxious.

17 Raising your eyes, reaching across the table like --

18 MR. PROPER: I never reached across the

19 table.

20 THE WITNESS: Yes, you did.

21 MR. PROPER: I did not.

22 MR. BERMAN: Let's just answer -- ask

23 questions.

24 MR. PROPER: This deposition is over.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 80 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 81

1 He gave me a pass. It's the third time he's made a

2 threat at me in this deposition.

3 MR. BERMAN: There's been no threats.

4 MR. PROPER: There has been.

5 THE WITNESS: Do you lunge at -- do you

6 lunge at people?

7 MR. PROPER: I've never lunged at you.

8 THE WITNESS: Do you lunge at people?

9 MR. BERMAN: You did.

10 MR. PROPER: Mr. LaForte, I would never

11 lunge at you.

12 THE WITNESS: Did you lunge across the

13 table?

14 MR. PROPER: I did not.

15 MR. BERMAN: You sure you want to --

16 you sure you want to stop this deposition?

17 MR. PROPER: Yes, because I'm going to

18 the judge and we will get another deposition and it may

19 have to be Court supervised.

20 THE WITNESS: I'm right here for this

21 deposition. Why are you leaving? Why are you leaving

22 the deposition?

23 MR. PROPER: Because you are continuing

24 to threaten me --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 81 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 82

1 THE WITNESS: That's not true.

2 MR. PROPER: -- in a way that's not

3 appropriate.

4 THE WITNESS: That is not true.

5 MR. PROPER: We can agree to disagree.

6 THE WITNESS: You just feel threatened

7 because you're wrong.

8 MR. BERMAN: Why don't you take a

9 break, Justin? Let's finish this deposition while

10 we're here. He's here today.

11 MR. PROPER: I'll take five minutes.

12 - - -

13 (Whereupon, a break was held.)

14 - - -

15 (Whereupon, a 5/31/19 E-mail Exchange has

16 been marked as Exhibit LaForte-4 for identification.)

17 - - -

18 BY MR. PROPER:

19 Q. Mr. LaForte, did you ever threaten to blow up

20 my client's house if she didn't repay the money?

21 A. That's a ridiculous question, but I'm going to

22 elaborate on it. Not only are you guys at White &

23 Williams lawyers, you guys are experts in -- you guys

24 are experts on law enforcement, too. Your client

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 82 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 83

1 already contacted every law enforcement agency up and

2 down the East Coast. So don't you think that law

3 enforcement is good at doing its job, Mr. Justin?

4 Because I'm still sitting here in front of you. It's a

5 ridiculous allegation and I'm not going to even justify

6 it with an answer.

7 Q. So you did not threaten to blow up my client's

8 house?

9 A. Of course not. Again, I think the law

10 enforcement does a pretty good job. I'm sure they

11 looked at it. I'm sure she called everyone up and --

12 everyone up and down the East Coast. And, again, I'm

13 still sitting here, so, obviously, it's a stupid and

14 dumb allegation to make and I resent it.

15 Q. Can I show you what's marked as LaForte-4?

16 There's an e-mail on the bottom of Page 1 from my

17 client to Joe Cole and it looks like you are cc'd on

18 this e-mail, joe@parfunding.com; is that correct?

19 A. Yes.

20 Q. Okay. This is an e-mail dated Friday,

21 May 3rd, 2019, at 9:52 a.m.

22 Did you receive this e-mail?

23 A. I can't even see it to know. I open up

24 about -- a couple e-mails. I don't really -- I don't

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 83 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 84

1 know if I received it.

2 Q. Do you recall -- and I know that the print is

3 small, so I'll read the first paragraph or so if that

4 will help.

5 MR. BERMAN: Very small. Let him read

6 it to you.

7 BY MR. PROPER:

8 Q. "Joe C., it's essential I understand how you

9 are determining our daily payment amount. For the

10 12/19 contract and the 2/24 contract, daily payment

11 went from 3500 to 16,500 and $4583.00 to $19,995. The

12 terms say 10 percent daily amount to be determined on

13 percent of income. What income figure are you using?"

14 And there's more, but I'll stop there.

15 Do you recall receiving an e-mail from

16 Ms. DiPietro where she questioned how CBSG was

17 calculating the 10 percent of income?

18 A. No.

19 Q. Do you recall having any conversations with

20 Ms. DiPietro where she questioned how CBSG was

21 calculating the 10 percent of income?

22 A. I probably had a conversation. I don't

23 remember the exact scope of the conversation.

24 Q. Did the daily payment for the 2,000 -- strike

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 84 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 85

1 that.

2 Did the daily payment for the

3 December 2019 contract over time go from $3500 a day, a

4 business day, to $16,500 each business day?

5 A. There was 48 contracts. I don't know -- I

6 couldn't begin to remember about one specific contract.

7 Q. Okay. So with respect to this specific

8 contract, December of 2019, I believe it was the second

9 to the last one --

10 A. Uh-huh.

11 Q. -- do you know whether or not the daily

12 payment increased?

13 A. I'm not in accounting. I wouldn't know that.

14 Q. Did you have any discussions with Mr. Cole

15 about whether or not the daily payment for the

16 December 2019 contract increased?

17 A. I don't recall what happened in December of

18 2019.

19 Q. Do you recall having discussions with anyone

20 about the increase of the daily payment in the 2019

21 contract between CBSG and my client? And that's

22 December of 2019.

23 MR. BERMAN: Objection.

24 You can answer.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 85 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 86

1 THE WITNESS: I don't remember.

2 BY MR. PROPER:

3 Q. So you don't know, sitting here today, whether

4 or not the daily payment for the December 2019 contract

5 increased over time or not?

6 A. I have no idea.

7 Q. Do you know what CBSG did to determine or how

8 CBSG did determine what the daily payment was for the

9 December 2019 contract?

10 A. I don't remember the deal, no.

11 Q. Do you know what CBSG did to ascertain what

12 the income was of my client's business in December of

13 2019?

14 A. Nope.

15 Q. Do you know what CBSG did to determine my

16 client's income in January of 2019?

17 A. I don't know.

18 Q. Do you know what income means for purposes of

19 either the December 2019 or the February 2020 contract?

20 A. You asked me that question earlier. Income

21 can mean a lot of different things. I don't know how

22 CBSG did its underwriting on this file.

23 Q. Are you aware that the 2000-- strike that.

24 Are you aware that the December 2019

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 86 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 87

1 contract and the February 2020 contract both used

2 10 percent of my client's income to calculate the daily

3 payment?

4 MR. BERMAN: Objection.

5 You can answer, if you understand.

6 THE WITNESS: He's about to hand it to

7 me, so I guess that's the answer.

8 - - -

9 (Whereupon, a 12/19/18 Agreement has been

10 marked as Exhibit LaForte-5, a 2/27/19 Agreement has

11 been marked as Exhibit LaForte-6, and Bank Statements

12 have been marked as Exhibit LaForte-7 for

13 identification.)

14 - - -

15 MR. PROPER: And I made a mistake on

16 the years. I just want to make sure Mr. LaForte and I

17 are on the same page and none of his answers change.

18 When I referred to the December agreement, it was

19 December of 2018, not '19, and when I referred to the

20 February agreement, it was 2019, not 2020.

21 BY MR. PROPER:

22 Q. With that correction, Mr. LaForte, do any of

23 your previous answers change?

24 A. No.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 87 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 88

1 Q. So if you look at Page 2 of Exhibit 5,

2 Mr. LaForte, this is the December 2018 agreement. The

3 middle of the page, in bold, states, "10 percent daily

4 specified amount to be determined on percentage of

5 income"; do you see that?

6 A. Yes.

7 Q. And then Exhibit 6 I believe has the same

8 language. It's the first page of Exhibit 6.

9 "10 percent daily specified amount begins at $4,583 per

10 day" --

11 A. Right.

12 Q. -- "and increases based on percentage of

13 income."

14 A. Right.

15 Q. Can we agree that after the adjustment is

16 made, that the numbers -- that the daily payment for

17 Exhibits 5 and 6 should be the same because they're

18 both based upon 10 percent of income?

19 MR. BERMAN: Objection.

20 You can answer.

21 THE WITNESS: No.

22 BY MR. PROPER:

23 Q. Why not?

24 A. Because when your client proceeded to steal

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 88 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 89

1 the receivables that she -- that we sold, that we

2 purchased together, when she stole those, it becomes

3 her income. So all the factoring agreements, when she

4 came up to my office and assigned to us, she stole from

5 us, now that becomes her income. That belongs on her

6 balance sheet because we haven't gotten paid, so she

7 took it in as income. So your numbers are incorrect.

8 Q. So if I'm understanding what you're saying,

9 the monies that you advanced to my client, CBSG treated

10 as income?

11 MR. BERMAN: Objection.

12 You can answer.

13 THE WITNESS: Obviously, it would

14 become income if she took it from us, right? And she

15 took the receivables. These are specific receivables.

16 This is not a typical cash advance. This is a specific

17 receivable that she sold to us. It's on all of the

18 agreements unsolicited.

19 BY MR. PROPER:

20 Q. So income, as you understand it and as CBSG

21 treated it, included any money that CBSG gave to my

22 client's business?

23 MR. BERMAN: Objection.

24 THE WITNESS: I wouldn't know how they

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 89 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 90

1 underwrote the file, again, but it would be obvious to

2 me, looking at this, since you're showing me this

3 stuff and I can make an opinion, an opinion would be

4 that, yes, she took all the income, didn't pay off the

5 income, so it becomes income. Our share, a

6 proportionate part of the deal, was taken by her, so I

7 would imagine that would be purported as income.

8 BY MR. PROPER:

9 Q. And so Exhibit 5 is December 19th, 2018, and

10 if you look at the bank statements, which is

11 Exhibit 7 --

12 MR. BERMAN: Were these produced? They

13 haven't been produced before today?

14 MR. HESKIN: They're part of the

15 petition exhibits. That's where we got them, so I'm

16 sure they've been produced.

17 MR. BERMAN: Okay.

18 BY MR. PROPER:

19 Q. So if you turn -- and I can show you this for

20 ease. You can ignore my notes or not. I don't care.

21 But on December 20, 2019, there was a debit of $3500

22 associated with this particular agreement. Are you

23 aware of that?

24 A. No. How would I know?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 90 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 91

1 Q. Do you know how CBSG calculated the

2 3500-dollar daily payment for Exhibit 5, which began on

3 December 20, 2019?

4 A. I have no idea.

5 Q. And then CBSG continues to debit $3500 for

6 Exhibit 5 from December 19th through January 23rd. And

7 we can go through. You can flip through yourself or

8 accept my representation, but here's January 23rd and

9 $3500 is still being taken out each day. You can see

10 the 22nd, $3500. You can see the 18th, $3500 and so on

11 and so forth.

12 A. Uh-huh.

13 Q. On January 24th, CBSG, for this particular

14 agreement, begins debiting $12,337.

15 MR. BERMAN: Are you representing that?

16 MR. PROPER: That's my representation.

17 MR. BERMAN: Okay. So you can accept

18 the representation for answering this question.

19 Doesn't mean it's true, but you can accept it.

20 THE WITNESS: Yeah.

21 BY MR. PROPER:

22 Q. So do you know why CBSG increased the amount

23 of the daily payment for this agreement from $3500 to

24 $12,337?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 91 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 92

1 A. I have no idea.

2 Q. Do you know what CBSG was doing to monitor my

3 client's income in order to calculate the daily

4 payment --

5 A. I'm not in the underwriting department. I

6 don't know.

7 MR. BERMAN: Let him finish for her,

8 just for her.

9 BY MR. PROPER:

10 Q. Do you know what my -- strike that.

11 Do you know what CBSG was doing to

12 monitor my client's income to ascertain the daily

13 payment from December 20, 2019, through January 24,

14 2019?

15 A. No.

16 Q. Now, CBSG debits $12,337 from my client's

17 account in connection with this agreement from

18 January 24, 2019, through February 14th, 2019. You

19 could see the 12,000, Mr. LaForte -- the 12,337 is

20 still debited on the 14th.

21 A. I know that your client took 25 million from

22 our company and paid back 21 million; therefore,

23 leaving us a deficit of $3 million. That's the only

24 thing I know regarding these contracts. I don't know.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 92 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 93

1 It was unsolicited. She solicited our company. She

2 put together most of her own deals. And the reason how

3 this sophisticated human being is able to do that is

4 because she's also in the cash advance business. So

5 she, in herself, owns a cash advance company. So not

6 only was she aware of every contract, she designed all

7 of them. So I'm sure that they -- she knew exactly

8 what she was doing. I can't testify to what these

9 charges are because I'm not an accountant and this is

10 foreign to me. I don't know.

11 Q. And I just have to ask the questions

12 notwithstanding.

13 On February 15th, 2019, I'm going to

14 represent to you that the daily payment for this

15 agreement increased to $14,525. Do you know why it

16 increased?

17 A. I wouldn't know.

18 Q. Do you know what, if any, change in income

19 there was for my client's business?

20 A. I'm not in underwriting. I represent

21 Recruiting and Marketing Resources. I'm not in

22 underwriting or an accountant, so I can't testify to

23 the answers to the questions -- in a lot of questions

24 you're giving me right now.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 93 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 94

1 Q. Did you have any discussions with anyone at

2 CBSG about these particular increases?

3 A. I don't remember.

4 Q. Do you have any e-mail communications, to your

5 knowledge, between yourself and anyone at CBSG

6 regarding these increases?

7 A. I don't know.

8 Q. Do you know if my client, as of February 15th,

9 2019, was meeting her obligations with respect to all

10 of the agreements that were outstanding at this time?

11 A. I wouldn't know what dates your client stopped

12 making their obligations. I don't --

13 Q. Are you aware that at one point in time, I

14 believe it was December 18 -- December 17, 2018 --

15 actually, I take that back. Strike that.

16 Are you aware that on November 8th,

17 2018, my client was charged a finance fee of

18 $472,356.60?

19 A. No.

20 - - -

21 (Whereupon, an HMC, Inc. Funding Payment

22 History has been marked as Exhibit LaForte-8 for

23 identification.)

24 - - -

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 94 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 95

1 MR. BERMAN: Was this document

2 produced?

3 MR. PROPER: It's your document.

4 MR. BERMAN: No, we didn't produce any

5 documents in this case. It's very confusing without

6 Bates stamps.

7 MR. PROPER: I don't know --

8 MR. BERMAN: Just ask the question.

9 BY MR. PROPER:

10 Q. Do you recognize this as a CBSG document or is

11 this a spreadsheet from -- actually, it may not be the

12 transaction history. So do we know what this is?

13 MR. FEDULLO: It's a spreadsheet that

14 was created by Kara.

15 MR. PROPER: I apologize. I thought

16 this was the transaction history. It's not.

17 BY MR. PROPER:

18 Q. So do you know whether or not my client's

19 accounting entry that a finance fee of 472,356.60 was

20 imposed upon her company on November 8th, 2018?

21 A. I'm not an accountant, but I will elaborate.

22 Q. Yes.

23 A. I'm not an accountant. I'm just a -- I was a

24 college baseball player. Played some minor league

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 95 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 96

1 baseball. I don't really have a formal education. But

2 I can tell you this: She couldn't be assessed a fee if

3 she owes the company 3 million. So, in my eyes, she

4 wasn't assessed anything.

5 Q. Well, can't you be imposed a finance fee and

6 have that finance fee be added to any outstanding

7 monies that are owed?

8 MR. BERMAN: Objection.

9 THE WITNESS: It never happened. She

10 paid -- she never paid it back, so what's the

11 difference? I don't know about that, but she never

12 paid it back, so I'm not going to answer about why she

13 doesn't have a finance fee that was never paid.

14 BY MR. PROPER:

15 Q. Yeah. Do you know whether --

16 A. If she paid the finance fee, we'd pay it back.

17 Q. Do you know -- do you know whether, in

18 November of 2018, whatever monies my client owed CBSG

19 were increased by some $400,000 --

20 A. I don't know.

21 Q. -- to reflect finance fees?

22 A. I don't know.

23 Q. So you don't know anything about finance fees

24 that were --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 96 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 97

1 A. I don't know.

2 Q. Just need to be able to finish because the

3 question right now reads, "Do you know anything about

4 finance fees that were --"

5 MR. BERMAN: Just let him finish asking

6 the question.

7 THE WITNESS: I answered the --

8 MR. BERMAN: I know, but he may have a

9 different question.

10 THE WITNESS: I answered the question

11 thoroughly on the finance fee.

12 MR. BERMAN: I know, but he may have a

13 new question.

14 THE WITNESS: All right.

15 BY MR. PROPER:

16 Q. I know you answered what would have been my

17 full question; I get that. There's just a tendency at

18 a deposition sometimes, particularly when we've gotten

19 to know each other a little, you anticipate where I'm

20 going, you answer the question --

21 A. I don't know you, so don't make like we know

22 each other. I don't know you.

23 MR. BERMAN: What's your question, so

24 can get this --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 97 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 98

1 THE WITNESS: Get to know you.

2 MR. BERMAN: Let's ask the question.

3 Let's just ask the question.

4 BY MR. PROPER:

5 Q. Do you know anything from any source about

6 whether my client's business was assessed a finance fee

7 whether or not charged or monies added to the

8 outstanding balance my client owed to CBSG?

9 MR. BERMAN: Objection.

10 You can answer.

11 THE WITNESS: I don't know. Your

12 client designed most of the deals herself. She's in

13 the cash advance business. These are factored

14 agreements. I don't know. I don't -- I'm not an

15 accountant. There's a lot of papers in front of me I

16 can't even see. I can't testify to any of that.

17 Without any glasses, I can't see.

18 BY MR. PROPER:

19 Q. Which document in particular can't you see?

20 A. I don't know anything about the accounting.

21 MR. BERMAN: Well, he told you on this

22 one, the e-mail, he couldn't see, which is, I think,

23 what he's talking about --

24 MR. PROPER: I understand that.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 98 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 99

1 MR. BERMAN: -- which is LaForte-4.

2 Just so we have a clear record what he's pointing to.

3 MR. PROPER:

4 Q. I understand and I think you understand that I

5 need to establish, because the witness said something,

6 that are there any other documents, other than

7 Exhibit 4, that you're having difficulty reading?

8 A. Even if I could read them, I'm not an

9 accountant. I wouldn't even know what it meant. I

10 don't know what any of this is.

11 Q. Were you involved in negotiating any of the

12 agreements between CBSG and my client?

13 A. I don't remember.

14 Q. Were you involved in trying to collect monies

15 from my client on behalf of CBSG?

16 A. Yes.

17 Q. Was there a point in time where my client

18 represented to you that she was having difficulty

19 making the daily payments?

20 A. I don't recall.

21 Q. What role did you have in trying to enforce

22 the agreements --

23 A. There never should have been any agreements.

24 COURT REPORTER: Hold on a second.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 99 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 100

1 MR. BERMAN: What role did you have to

2 try to enforce the agreements?

3 Right, that was the question?

4 And answer?

5 THE WITNESS: I don't know what that

6 means, by "role."

7 MR. BERMAN: Okay. So he'll rephrase

8 the question.

9 BY MR. PROPER:

10 Q. What discussions did you have with my client

11 in an effort to collect monies that you allege she owed

12 to CBSG or you believe she owed?

13 A. No, she definitely owed. Probably, if I could

14 remember the right way, what did you do with the

15 receivables that we purchased and that we owned and why

16 did you steal them from us and not pay them? So if you

17 and I make an agreement and we say that we're going to

18 sell this pack of gum right here and we're going to

19 split it and you take all the gum, you stole it. So

20 she stole the money because it specifically talks about

21 a receivable.

22 Q. Well, wouldn't CBSG have been taking -- strike

23 that.

24 So on these agreements, so the February

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 100 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 101

1 agreement, if you look at Exhibit 6, states that the

2 daily payment's going to start at 4583 and increase

3 based upon percentage of income, right? We established

4 that it's what it says?

5 A. Okay.

6 Q. So what would happen under this agreement, as

7 you understand it, if my client's income decreased?

8 Would the daily payment decrease?

9 A. I don't know anything about how that works.

10 Q. So under the -- under this agreement, I'm

11 going to represent to you that my client was charged

12 $19,995 a day beginning on April 16, 2019, under this

13 agreement. So the daily payment increased from 4583 to

14 over $19,000.

15 A. Did she pay back the receivable that we

16 financed?

17 Q. Well, let's start with that premise.

18 A. No, let's just talk about the first thing.

19 Did she pay back the receivable; in other words, when

20 she got the money, did she pay it back to us?

21 Q. Do you know if the $19,995 that CBSG debited

22 on April 16th reflected 10 percent of my client's

23 income?

24 A. Do you know? I don't know. Do you know if

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 101 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 102

1 she paid back that receivable, though? In other words,

2 receivables that she came to my office 16 times and

3 pledged with my girls by buying them candies and

4 lunches every time she came, do you know if those

5 receivables were paid back? I don't think so because

6 if they were paid back and we got our share, we

7 wouldn't be sitting here right now. So she captured

8 the receivables and took the receivables. So these

9 payments are irrelevant. I don't know.

10 Q. Do you know if CBSG was taking more money than

11 it was entitled to under these agreements?

12 MR. BERMAN: Objection.

13 You can answer.

14 THE WITNESS: No.

15 BY MR. PROPER:

16 Q. Well, how can you say that CBSG wasn't taking

17 more money than it was entitled to when you don't know

18 how CBSG was calculating the 19,995-dollar daily

19 payment on --

20 A. Because you have to learn finance again.

21 Q. -- April 16, 2019?

22 A. I'll give you a one-on-one class again.

23 Q. Sure.

24 A. If you look at the original agreements,

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 102 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 103

1 they're 22, 44, 66, 88 days because the receivable came

2 in. She kept the receivable instead of giving us the

3 money. She never would have had these balances. So

4 she actually benefitted by keeping the money that

5 belonged to us, not only our profit share piece, but

6 also our principal over years in time. So she

7 benefitted from this agreement way more. If she chose

8 to pay it back, I don't know how she chose to pay it

9 back. But if the receivable never came back to us and

10 it was a 45-day pay or a 90 pay and a year-and-a-half

11 goes by, don't you think she did pretty well with our

12 money, Jason.

13 Q. It's Justin.

14 A. Jason or Justin.

15 Q. So if I'm understanding what you're saying,

16 when you provided or CBSG provided the advance, if the

17 monies don't come in, what does that mean?

18 A. No, it doesn't mean anything. I'm not

19 speaking on behalf of CBSG. I'm using common sense.

20 Again, I'm not a lawyer, I'm not an accountant, but I'm

21 using common sense.

22 Q. Does my client --

23 A. You want to use the gum theory again? We'll

24 use the gum theory again. If you don't pay back what

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 103 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 104

1 you originally had pledged, that's called taking

2 something that doesn't belong to you.

3 Q. Does my client still have to pay back the

4 money if the receivables never come in?

5 MR. BERMAN: Objection.

6 THE WITNESS: I wouldn't know the

7 answer to that.

8 BY MR. PROPER:

9 Q. Well, under the agreement, who bears the risk

10 of loss if there's no receivable?

11 A. I'm sure we'll get to those receivables on the

12 next deposition for your client.

13 Q. Yeah, I'm just asking you if there are no

14 receivables, is it your testimony that my client still

15 owes the money?

16 MR. BERMAN: Objection.

17 But you can answer.

18 THE WITNESS: Your client definitely

19 still has receivables because last week, she was

20 looking for more cash advances, which she also received

21 a few more cash advances. Not only do I have the bank

22 statements, but she's doing very, very well with the

23 money that I gave her.

24 And on top of that, she took another

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 104 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 105

1 cash advance and took some of that money and paid you

2 guys to litigate me via cash advance. So cash advances

3 are her thing. She knows exactly what she's doing.

4 She's very sophisticated. You guys are very

5 sophisticated. Used that money to get you guys paid.

6 It's America. Very good.

7 BY MR. PROPER:

8 Q. Why do you think that Ms. DiPietro obtained

9 financing from a litigation funder to pay our firm?

10 MR. BERMAN: That's already said.

11 But you could answer.

12 THE WITNESS: I didn't say that. I

13 just said a cash advance, didn't I?

14 BY MR. PROPER:

15 Q. I apologize.

16 Why do you believe that my client used

17 monies from a cash advance to pay our firm?

18 A. They did.

19 Q. How do you -- why do you think that? Why do

20 you believe that?

21 A. You'll find out.

22 Q. I'm asking you --

23 A. You'll find out.

24 Q. -- what you know.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 105 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 106

1 A. You'll find out. I don't have to tell you

2 anything. You'll find out. She took a cash advance to

3 pay you. That's why I think these guys should be

4 recused from this case. I don't know a lot about the

5 law, but if you're fighting against cash advances and

6 Mr. Heskin here is a mavin against the cash advance

7 business and he's telling his clients to go out and

8 take cash advances to get himself paid, that would seem

9 hypocritical to me, Your Honor. I mean, I don't

10 understand why I'm here. She's continuing to take cash

11 advances.

12 She owns a cash advance company called

13 Kenetic Capital and I don't know why I'm here. This is

14 a sophisticated person. I'm the fool to get scammed

15 and that's just what happens. In life, that happens.

16 We're out $3 million, the company. I lost all my

17 broker fees. It happens. The fact of the matter is if

18 she took a cash advance in order to pay you guys, shame

19 on you and you guys shouldn't be deceiving us. The

20 fact of the matter is you guys are here for one reason.

21 Not to help your clients. You're here to bilk them

22 with my money and other people's money.

23 Q. What brokering fees did you lose?

24 A. My fees.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 106 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 107

1 Q. How much did you lose?

2 A. I don't remember.

3 Q. Did you get paid --

4 A. If the company loses money, I wouldn't expect

5 to get paid, right? So similar to when you lose a

6 case, you still have to pay, right?

7 Q. Did you get paid and then have to return money

8 to CBSG or were you owed money and then not paid --

9 A. I don't remember. Like when you -- like if

10 you lose this case, you'd have to return some of the

11 fees you guys are probably borrowing, right, to go pay

12 back the contingencies. It's a similar thing. It's

13 how it works.

14 Q. Why do you believe that my client used cash

15 advance money to pay our firm?

16 A. You'll find out later on. I'm sure that

17 Mr. Berman wouldn't let me answer that question even

18 though he didn't object.

19 Q. Unless Mr. Berman instructs you not to answer,

20 you have an obligation to answer my questions.

21 A. I don't have an obligation to answer anything

22 you tell me.

23 MR. BERMAN: Especially since the time

24 period you're talking about is well outside the scope

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 107 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 108

1 of this case, but he's giving you --

2 THE WITNESS: I'm volunteering the

3 answer. I gave you the answer already.

4 BY MR. PROPER:

5 Q. You're seeking and have self-discovery in that

6 time period. You're saying that those documents are

7 not --

8 A. Justin --

9 MR. BERMAN: I didn't say anything.

10 Your document requests are not yet due. You served

11 them very untimely, so they're due the day before the

12 close of discovery. We'll produce responsive

13 documents.

14 MR. PROPER: Whether they're due or

15 not, this is a fact-finding deposition. I'm entitled

16 to discover information your client is withholding.

17 MR. BERMAN: He's told you many

18 times -- probably six times now, I've heard it --

19 that -- and I'm not here to testify for him, so I'll

20 just say what he said. He told you that she took a

21 cash advance and, the next day, she wired the money to

22 your firm.

23 Right?

24 THE WITNESS: Not the next day. Not

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 108 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 109

1 the next day. A few days.

2 MR. PROPER: Great. Who is the company

3 just so --

4 MR. BERMAN: I don't know. I just told

5 you what he said.

6 MR. PROPER: Yeah, I just want you

7 to -- it will be easier if I can ask you the questions.

8 THE WITNESS: You should know. You

9 probably set up the financing for it.

10 MR. BERMAN: Just answer. Who's the

11 company; do you know?

12 THE WITNESS: I don't know.

13 MR. BERMAN: Okay.

14 BY MR. PROPER:

15 Q. How did you discover that my client took a

16 cash advance?

17 A. Heard it.

18 Q. Heard it from who?

19 A. Heard about it.

20 Q. From who?

21 A. A bird.

22 If the client did take a cash advance

23 and did send you the money, Jason, would you recuse

24 yourself? I mean, because you're part of the

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 109 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 110

1 hypocrisy, right?

2 Q. It's Justin, Mr. LaForte.

3 A. Justin, would you recuse yourself? Shane,

4 would you recuse yourself if they did that? You'd have

5 to. It would be the laughing stock of the whole

6 industry. Guys who are the biggest advocates against

7 cash advances are telling their clients to get cash

8 advances to pay them. Wouldn't that be an interesting

9 document to produce?

10 MR. HESKIN: It would be.

11 THE WITNESS: Oh, it's coming.

12 BY MR. PROPER:

13 Q. How do you know it's coming? What do you know

14 that you're not telling us?

15 A. I know a lot of things I would never tell you.

16 So that's none of your business.

17 Q. So you're not going to answer any questions

18 that I may have with respect to how you're discovering

19 my client's activities?

20 A. Let Ms. DiPietro answer the questions. I'm

21 sure she's getting a deposition soon; is that correct?

22 MR. BERMAN: She is.

23 BY MR. PROPER:

24 Q. So the answer to my question is you are

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 110 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 111

1 refusing to provide me with the information you know

2 about my --

3 A. Who are you? I don't have to tell you

4 anything.

5 MR. BERMAN: Let -- let -- we're not

6 doing --

7 THE WITNESS: You're supposed to ask me

8 the questions. I'm answering questions. I don't have

9 to provide you with anything.

10 MR. BERMAN: Well, let me say this:

11 Ask questions and he'll answer.

12 MR. PROPER: I've been asking

13 questions.

14 MR. BERMAN: So ask the question and

15 let him answer.

16 MR. PROPER: You don't like your client

17 refusing to answer questions; that's fine. But don't

18 tell me how to conduct my deposition, please.

19 MR. BERMAN: I'm not, but I'm just

20 saying --

21 MR. PROPER: I'm asking questions.

22 MR. BERMAN: -- if you give me a

23 blanket, like, if I ask all these questions, I'm not

24 agreeing to that. So ask questions. He'll answer or

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 111 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 112

1 not, but I think he's answering -- I think he's

2 answered you he doesn't know that --

3 MR. PROPER: These are speaking

4 objections and aren't appropriate, so stop.

5 MR. BERMAN: Just ask questions.

6 BY MR. PROPER:

7 Q. Which bird told you about my client's MCA

8 activity?

9 MR. BERMAN: And if you know, answer.

10 Just if you know, answer it.

11 THE WITNESS: I'm not answering.

12 MR. BERMAN: Okay.

13 BY MR. PROPER:

14 Q. What are you doing to monitor my client's

15 business activities currently?

16 A. Nothing.

17 Q. What is CBSG -- what is CBSG doing to monitor

18 my client's business activities?

19 A. Nothing.

20 Q. What role did --

21 A. Who is your client, just so I get a clear

22 picture?

23 Q. HMC and Kara DiPietro.

24 What role did you have with Bridge

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 112 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 113

1 Capital contacting my client?

2 A. Jason --

3 Q. Justin.

4 A. Justin, let's -- HMC -- what's the name of the

5 company, HMC what?

6 Q. What role did you have personally --

7 A. What's the name of the company?

8 MR. BERMAN: HMC Incorporated.

9 BY MR. PROPER:

10 Q. What role did you have, Mr. LaForte,

11 personally, if any, in having representatives of Bridge

12 Capital contact my client?

13 A. I never heard of the company.

14 Q. How do you know that Ms. DiPietro wired any

15 monies to our law firm?

16 A. Good guess.

17 Q. Are you guessing or do you know?

18 A. Not answering you.

19 Q. You understand your counsel did not instruct

20 you not to answer?

21 A. You understand that if you took -- if your

22 client took a cash -- another cash advance to pay you,

23 what a problem you have? Why are you questioning me?

24 I'm not the one that took the cash advance in order to

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 113 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 114

1 pay you. Why are you questioning me?

2 Q. Do you have any information at all about any

3 of the increases in daily payments from my client?

4 A. No.

5 Q. Do you have any information at all about how

6 CBSG calculated or monitored the income of my client?

7 A. No.

8 Q. Do you have any information at all about what

9 reserves, if any, CBSG keeps with respect to MCA

10 transactions?

11 MR. BERMAN: Objection. You mean this

12 one?

13 MR. PROPER: You can answer this one.

14 MR. BERMAN: As to this.

15 MR. PROPER: But there is no limitation

16 on this deposition.

17 MR. BERMAN: We don't agree.

18 THE WITNESS: I don't know what the

19 word means.

20 MR. BERMAN: Just answer his question.

21 So the answer is "I don't know"?

22 THE WITNESS: I don't know.

23 BY MR. PROPER:

24 Q. Do you know if CBSG is audited by any third

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 114 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 115

1 party?

2 A. I don't know.

3 Q. Do you know if Mr. Vagnozzi represents on his

4 website that the agreements between CBSG and businesses

5 are loans?

6 A. I wouldn't know.

7 Q. Have you ever seen any of the videos that

8 Mr. Vagnozzi has on his website describing CBSG's

9 products?

10 A. I don't go on websites.

11 Q. Okay. Have you ever been at an event where

12 Mr. Vagnozzi played videos where he is describing

13 CBSG's products?

14 A. Maybe once.

15 Q. Do you recall that in the videos that

16 Mr. Vagnozzi plays at these events, that he describes

17 CBSG's products as loans?

18 A. No.

19 Q. If you had been at an event and Mr. Vagnozzi

20 continuously represented to investors and potential

21 investors that CBSG charges 35 percent interest rates,

22 would you correct that?

23 MR. BERMAN: Objection.

24 You can answer.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 115 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 116

1 THE WITNESS: Yes.

2 BY MR. PROPER:

3 Q. Okay. So you've never been at an event and

4 represented that CBSG charges 35 percent interest?

5 A. If you're asking me if I correct people in

6 public forums, the answer to that is no, except for

7 you, who doesn't really understand the business. But,

8 no, I don't have a common practice of correcting people

9 in public forums. If a man said a word, I'm not going

10 to sit there and correct him, nor is it my obligation

11 to correct any word he uses. Especially a slight

12 differential in a word, I'm not going to correct a man.

13 I don't do that.

14 Q. Ms. DiPietro in Exhibit 4 -- and I'm reading

15 this because the print is small -- on May 3rd, 2019,

16 she writes in response to one of your e-mails, "Thank

17 you. Yes, the only problem has been the rate of

18 increase in the two daily payments without warning, not

19 the total amount due. I will send along an idea for

20 review in the next hour or so." And then you respond

21 the same day, "Okay, I will work on it, but let's be

22 honest, it looks like you waited until you got all our

23 money first before you made a complaint about the

24 escalations, right? You see how this looks to us

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 116 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 117

1 optically, right? The payments have been increasing

2 every week since the first deal the same way. Now your

3 funding is ended and you are complaining about

4 escalations. See our point?"

5 Do you remember sending that e-mail?

6 A. Yup.

7 Q. So you were aware at least in May of 2019

8 about the escalation of the daily payment?

9 A. What kind of deal was that? Did you study the

10 deal? Did you study the deal? They're tranche deals,

11 right?

12 MR. FEDULLO: I'm not being deposed.

13 THE WITNESS: If you study the deal, if

14 you look, the money is not given in full to the client.

15 It's tranched in a -- during a specific time period,

16 which I don't have in front of me. So, obviously, if

17 she gets more capital, the payments go up. She took

18 all the money first and then complained about the

19 payment.

20 BY MR. PROPER:

21 Q. So you're saying that when CBSG is advancing

22 money in tranches --

23 A. Uh-huh.

24 Q. -- that after every advance --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 117 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 118

1 A. Right.

2 Q. -- that's additional income and therefore the

3 daily payment necessarily will increase?

4 A. Correct.

5 Q. Now we're on the same page.

6 A. It took three hours to get you there.

7 Q. Listen, we -- I don't have a finance degree,

8 so I apologize.

9 A. I know, but you're representing these people.

10 It gets confusing.

11 Q. Is there anything in any of the agreements

12 that my client signed, to your knowledge, which advises

13 her that CBSG is going to treat the advances as income?

14 A. I don't know.

15 Q. And you don't know anything, just to be

16 clear -- and I'm asking these broadly so we can move

17 things along. I'm trying to be as respectful as I can

18 of your time, Mr. LaForte.

19 Do you know anything generally about

20 how CBSG was monitoring the income of my client? Like

21 were they reviewing bank statements? Were they doing

22 some type of online monitoring? Do you know anything

23 about that?

24 A. No, but I can -- I'll elaborate.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 118 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 119

1 Q. Okay.

2 A. It was a great relationship between us and

3 Ms. DiPietro. Ms. DiPietro was -- came to our office

4 many times. She was in the cash advance business.

5 There was a lot of trust placed on her that she would

6 borrow responsibly and that her receivables were real.

7 So I think that, in hindsight, that CBSG did a poor job

8 in monitoring her obvious misappropriation, if you

9 would, of funds. So how they -- how they did that, I

10 don't know. If it were me, I probably wouldn't have

11 done it that way, but that's what they chose to do.

12 Q. And one other question before we mark some

13 text messages. Do you know anything about how CBSG was

14 determining what payments were made on a particular

15 invoice?

16 A. No.

17 - - -

18 (Whereupon, Text Messages have been marked

19 as Exhibit LaForte-9 for identification.)

20 - - -

21 BY MR. PROPER:

22 Q. And just to be clear, you weren't involved in

23 the underwriting for any of these agreements?

24 A. I'm not an underwriter.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 119 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 120

1 Q. And you don't know how the underwriting was

2 done?

3 A. No.

4 Q. Okay. Are you familiar with these text

5 messages between yourself and my client?

6 A. I can't see them.

7 Q. Okay. So I'll help with reading these.

8 On May 10th, it looks like you text my

9 client. It says, "Type, incoming sender, Joe LaForte."

10 And the text says, "You need to call me."

11 Do you remember sending a text on or

12 about May 10th?

13 A. I wouldn't know. I don't even know if this is

14 my writing.

15 Q. Okay. Do you recall --

16 A. And I wouldn't believe anything that is on any

17 of these pages, especially since she accused me of

18 trying to blow up her house and that was untrue,

19 obviously, because we discovered that already. So why

20 would I believe any of this gibberish and nonsense? So

21 I'm not going to answer to any of these questions.

22 Q. Do you have any of your text messages with my

23 client?

24 A. I don't know.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 120 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 121

1 Q. Did you text with my client?

2 A. I don't know.

3 Q. Did you tell my client on May 10, 2019, to get

4 her fat ass up and call you?

5 A. I hope so.

6 Q. Okay. Did you tell my client in a text

7 message on May 10, 2019, "Okay, so you think I screwed

8 you. Are you seriously nuts? I am out millions. I

9 trusted you with my family's money. I never screwed

10 anyone, especially you. Now I'm going to have to come

11 after you for the money." Did you send that text?

12 A. I don't know.

13 Q. Were you out millions of dollars because of my

14 client?

15 A. I don't know.

16 Q. Did you trust my client with your family's

17 money?

18 A. I don't have any family money.

19 Q. Okay. If you -- if we can verify that you

20 sent this text on May 10th --

21 A. Call me back and I'll let you know.

22 Q. Okay. But would there be any reason why you

23 would tell my client that you trusted her with your

24 family's money --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 121 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 122

1 A. What's the difference? What is it your

2 business what my family has? Where are you going?

3 Q. I'm just asking whether or not the money that

4 was advanced to my client included money from you or

5 any of your family.

6 A. No.

7 Q. Okay. So if you had told my client --

8 A. Is my wife considered my family? How does

9 that work? Is my wife considered family?

10 Q. Yes.

11 A. Oh, okay. I didn't know because you guys

12 might run your lives differently than me, but my wife

13 is considered family.

14 Q. So did your wife provide monies?

15 A. I'm just asking you a question back; that's

16 all. And you answered it.

17 Q. Did your wife provide monies?

18 A. No.

19 Q. Is your wife currently the president of CBSG?

20 A. I don't know.

21 Q. Do you know who is --

22 A. You asked me that earlier and you asked me

23 that at the last deposition. You keep asking me the

24 same questions.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 122 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 123

1 Q. I thought at the last deposition you said she

2 was and she was actively involved in running the

3 company.

4 A. Whatever. I don't remember.

5 Q. And today you said no.

6 A. I don't remember.

7 Q. Did you tell my client on May 10, 2019, at

8 1:27 p.m., "You keep clicking me and my A/R team is

9 contacting your clients as we speak."

10 Who is your A/R team?

11 A. I don't know.

12 Q. Do you have an A/R team?

13 A. I don't know if this is mine, first of all.

14 So you need to go back and verify this, that it's mine,

15 and then I'll come back and answer questions about

16 this. She's a liar, a known liar. She said I tried to

17 blow up her house, which, obviously, isn't true because

18 I'm still sitting here with you. So these all could

19 not be me, so why would I answer something that I

20 can't answer, that I can't know -- I don't even know if

21 it's me? Anybody can put my name there.

22 Q. Do you have an A/R team at CBSG?

23 A. I don't know. I don't have anything at CBSG.

24 I work at Recruiting and Marketing Resources.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 123 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 124

1 Q. Did you tell my client --

2 A. Do you remember that from last time?

3 Q. Did you tell my client that you have an A/R

4 team?

5 A. I don't know.

6 Q. Did you tell my client that you were out

7 millions of dollars?

8 A. I don't know.

9 Q. Did you tell my client in a text on May 10,

10 2019, at 1:29 p.m. to pick up coward?

11 A. I don't know. I can't -- I don't even know if

12 this is mine.

13 Q. Did you text my client at 1:33 p.m. on

14 May 10th, 2019 --

15 A. Can we get this over with and just say I don't

16 know what any of this is?

17 MR. BERMAN: Let him just ask the

18 questions. He's almost done.

19 THE WITNESS: I don't know.

20 BY MR. PROPER:

21 Q. "This is fraud on your part, straight up

22 robbery. You're disgusting." Did you tell that to my

23 client?

24 A. I hope so.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 124 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 125

1 Q. Okay. You think my client is disgusting?

2 A. I think you're disgusting. I think you guys

3 are disgusting for even taking this case.

4 MR. BERMAN: Let's keep the questions

5 going.

6 MR. PROPER: Why can't you tell your

7 client not to insult me?

8 MR. BERMAN: Well --

9 THE WITNESS: Because you took a cash

10 advance, buck. You took a cash advance in order to

11 help this client. And you made the client go take a

12 cash advance. That's why you're asking about

13 disgusting, you're asking me dumb questions. Do I

14 think somebody is disgusting?

15 MR. BERMAN: Let's just let him keep on

16 asking so we can finish this up.

17 Keep on going, Justin, please.

18 MR. PROPER: Mark that, please. I

19 think we're at 10.

20 - - -

21 (Whereupon, 5/2/19 E-mail Exchange (2 pages)

22 have been marked as Exhibit LaForte-10 for

23 identification.)

24 - - -

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 125 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 126

1 BY MR. PROPER:

2 Q. Mr. LaForte, this copy is a little better with

3 the font.

4 Do you recall receiving an e-mail from

5 my client on May 2nd, 2019 --

6 A. No.

7 Q. -- which reads, in part, "I doubt you have had

8 time to review the e-mail I sent earlier, but, in

9 short, the way we structured the open six contracts

10 depleted our cash flow. Do you have a second to

11 briefly" -- it says "glace," G-L-A-C-E. I think she

12 means glance -- "at the info I sent earlier? You will

13 see that the same amount of" -- dollar sign, dollar

14 sign -- "money coming in and virtually the same amount

15 of funding at a cost three times as much as before has

16 put us in a paycheck-to-paycheck situation." And then

17 my client requests, and I quote, for the short term,

18 open paren, like until Monday, closed paren, comma, I

19 have a couple of ideas, colon, 1, open paren, freeze

20 dailies, semi colon, 2, period, closed paren, provide

21 funding, period.

22 Do you recall my client advising both

23 Mr. Cole and yourself that my client was having money

24 problems and requested a freeze of the dailies?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 126 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 127

1 A. How could your client have any money problems

2 when she took all of our receivables?

3 Q. Do you know what my client did with the

4 receivables that you advanced?

5 A. I don't know. I hope we find out.

6 Q. Do you know if my client used it to make

7 payroll payments and pay monies that were owed?

8 A. I don't know. But if she did, that wasn't her

9 money to use.

10 Q. My client wasn't entitled to use the money?

11 A. Do you guys steal money? Do you guys know

12 where your money comes from? Do you guys take money

13 from cash advance companies? She took money from a

14 cash advance and didn't pay it back. And you guys --

15 basically, the same hypocrisy goes on for you guys. So

16 I don't know what she did with her money.

17 Q. Do you recall responding to my client on

18 May 2nd, 2019, at 3:40 p.m., "I cannot freeze my ACH

19 dailies. We just completed millions of dollars at

20 350,000 a month. I will work with you Monday, but

21 until then, I expect" -- it says or, but I think you

22 mean our -- contract to be adhered to." Did I read

23 that correctly?

24 A. Did you? I guess you did. I don't know.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 127 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 128

1 Q. Did you send this e-mail?

2 A. I don't know. Looks like it.

3 Q. When you say, "We just completed millions of

4 dollars at 350,000 a month," who did you mean "we"?

5 A. I don't know.

6 Q. When you say, "I cannot freeze my ACH

7 dailies," who's "I" and "my"?

8 A. So I represent Recruiting and Marketing

9 Resources. I'm the broker on the transaction and this

10 is my client.

11 Q. So --

12 A. Unfortunately, it was a very bad transaction.

13 Q. Why were you being consulted about these

14 issues?

15 A. So let's go into this, Jason.

16 Q. Justin.

17 A. Justin. So when you have -- when you're a

18 broker, you're responsible to maintain your client the

19 same way -- same as anybody else, okay? So you're

20 trying to pin the fact that I am Par Funding. I am

21 not. I work for Recruiting and Marketing Resources.

22 When you refer a file over to a company, you do a

23 best-efforts job in trying to help maintain the client

24 for the lender for funding. And that's my effort

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 128 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 129

1 there.

2 MR. PROPER: Can you mark this as 11,

3 please.

4 - - -

5 (Whereupon, a 5/2/19 E-mail Exchange (4

6 pages) have been marked as Exhibit LaForte-11 for

7 identification.)

8 - - -

9 BY MR. PROPER:

10 Q. There's an e-mail, Mr. LaForte, on the bottom

11 of the first page from Aida Lau. Who is Ms. Lau?

12 A. She's an employee of Par Funding.

13 Q. And what does Ms. Lau do for Par Funding?

14 A. I'm not sure.

15 Q. Do you know how long she's worked for Par

16 Funding?

17 A. I don't.

18 Q. How many employees does Par Funding have?

19 A. I don't know.

20 Q. Do they have employees other than Ms. Lau?

21 A. I'm sure they do.

22 Q. What employee do you personally know at the

23 company?

24 A. I don't know.

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 129 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 130

1 Q. Can you think of anyone other than Ms. Lau?

2 A. No.

3 Q. Does Mr. Cole work for CBSG?

4 A. I don't know.

5 Q. Ms. Lau writes on May 2nd, 2019, at

6 10:18 p.m., "Hi, Kara. Please let me know where I can

7 find the 10 percent increase on daily per draw. I

8 couldn't find it. I saw it's based on income." And my

9 client responds at 10:21 p.m., "Income is revenue minus

10 expenses. So should I pull a revenue minus expenses to

11 get the income amount? Since it was in the contract

12 next to 10 percent, it looks like the income is the net

13 funding."

14 Do you agree or disagree with my

15 client's reading of the agreement that it's net

16 funding?

17 A. I disagree.

18 Q. Okay. And at the top of the page, you

19 respond -- actually, I take that back. Ms. Lau

20 responds --

21 A. Anyone can make up any -- first of all,

22 anybody can make up any expenses. It doesn't -- you

23 can't -- you can't do a revenue model based on

24 expenses. Anybody can expense a company out as much as

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 130 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 131

1 they want. Companies would never get paid. That goes

2 with any factor. This is a straight factor deal.

3 The fact of the matter is these are

4 leveraged by actual jobs. We have proof. We have the

5 jobs. And for you to even say that -- for her to even

6 insinuate that it's net, how could you do that? You

7 just take it all as expenses, no one would get paid.

8 Q. If they were factored on specific jobs, then

9 isn't CBSG limited to taking monies that was received

10 on those particular jobs?

11 A. Yes.

12 Q. We agree on that?

13 A. Yeah, they should take it on those jobs. And

14 if the job is misperformed or something happens, that's

15 why you get keyman policies. Then they should pay the

16 debt.

17 Q. Okay. Well, let's explore that.

18 A. Let's say if you -- unless your client came in

19 and put a bunch of receivables on the books and

20 committed a fraud; is that what you're getting at?

21 MR. PROPER: Can you read Mr. LaForte's

22 answer back, please.

23 - - -

24 (Whereupon, the court reporter read the

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 131 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 132

1 record back as requested.)

2 - - -

3 BY MR. PROPER:

4 Q. So when you say if the job is misperformed or

5 something happens such that monies aren't paid on an

6 invoice, then what happens in terms of my client paying

7 a debt? Where does --

8 MR. BERMAN: Objection.

9 THE WITNESS: I don't know.

10 BY MR. PROPER:

11 Q. Is my client still obligated to pay the debt

12 at that point?

13 MR. BERMAN: Objection.

14 THE WITNESS: I don't know. It's not

15 for me to say. I'm not a lawyer.

16 BY MR. PROPER:

17 Q. No, I'm just asking you.

18 A. I'm not a lawyer. I can't give an opinion.

19 Q. Based upon your years working at Recruiting

20 and Marketing Resources and as an ISO --

21 A. I cold call. I'm not that smart.

22 Q. Do you have an understanding as to what

23 happens if monies are not received on a particular

24 invoice --

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 132 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 133

1 A. I have no idea how that would work.

2 Q. -- in these agreements?

3 A. I have no idea. I'm not a lawyer. This is

4 way out of my scope.

5 Q. Do you know if CBSG was only taking

6 receivables for a particular invoice or if they were

7 taking a percentage of all my client's receivables?

8 A. I have no idea.

9 Q. And Ms. Lau responds to my client on May 2nd,

10 2019, at 11:32 p.m., "Joe said the agreements are

11 fixed. You will need to come in and discuss about this

12 matter."

13 Do you know which Joe Ms. Lau was

14 speaking of?

15 A. How could I testify to what Ms. Lau meant?

16 Q. I'm asking you did -- well, let me ask it this

17 way: Did Ms. Lau have a discussion with you where you

18 told Ms. Lau to explain to my client that the daily

19 payment is fixed?

20 A. Could be anybody. There's a lot of Joes in

21 the world. I don't know who she meant.

22 Q. Yeah, I'm just asking --

23 A. I don't know.

24 Q. -- do you recall?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 133 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 134

1 A. Yeah, I don't recall what happened on May 2nd

2 of 2019 with an e-mail that didn't even come through my

3 e-mail. How would I know? How do I know what she

4 meant?

5 Q. Do you have any e-mail communications with

6 Ms. Lau about my client?

7 A. No.

8 Q. Did you look to see if you had any or you

9 remember that you didn't?

10 A. I would doubt I have any.

11 Q. Do you recall any conversations that you may

12 have had with Ms. Lau about my client?

13 A. It's not a big topic of conversation, no.

14 Q. Well, she owed CBSG a lot of money, didn't

15 she?

16 A. Uh-huh, she did owe a lot of money. She does

17 owe a lot of money, still.

18 Q. And what efforts are you currently undertaking

19 to try to collect that money outside of this lawsuit?

20 A. I wouldn't know anything about that.

21 Q. How did you get a hold of my client's bank

22 statements recently?

23 A. Next question.

24 Q. Why won't you answer that question?

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 134 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 135

1 A. I don't want to.

2 Q. Are you refusing to answer my question --

3 A. Yes.

4 Q. -- how you ascertained --

5 A. Yes. Who said I asked for bank statements?

6 Did you say that?

7 Q. I thought you testified --

8 A. You're putting words in my mouth. I never

9 testified about any bank statements, so don't put words

10 in my mouth. Don't. Enough.

11 Q. Mr. LaForte --

12 A. Don't put words in my mouth.

13 Q. -- I could be mistaken.

14 A. You are mistaken. Read it back.

15 Q. I would have to go back and look at the

16 transcript.

17 A. You're mistaken. You've been mistaken about

18 this the whole day. So stop mistaking it and get it

19 right. I never testified that I saw anybody's bank

20 statements. You asked me about Bridge Capital. I

21 didn't answer you. I don't know anything about Bridge

22 Capital and I don't know anything about bank

23 statements. I said a birdie told me. And that's

24 exactly how I testified. And then you asked me what

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 135 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 136

1 was the bird's name.

2 Q. At that point, yes, I'm talking previously.

3 A. You good?

4 MR. BERMAN: Let's just finish up.

5 Next question.

6 BY MR. PROPER:

7 Q. Is it your testimony under oath that you have

8 never obtained bank statements from my client --

9 A. I'm not testifying to anything.

10 Q. I'm asking you, under oath, did you obtain a

11 copy of my client's bank statements in the last

12 two months?

13 A. I'm not answering you.

14 MR. HESKIN: We want to reserve the

15 right and we're going to be bringing a motion to recall

16 him based on his refusal to answer.

17 MR. BERMAN: Which questions?

18 MR. PROPER: The ones he refused to

19 answer.

20 - - -

21 (Whereupon, the deposition of

22 JOSEPH LaFORTE was concluded at

23 1:54 p.m.)

24 - - -

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 136 of

 157
Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 137 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 138

A

a.m 1:17 83:21

A/R 123:8,10,12

123:22 124:3

able 59:18 93:3

97:2

absolutely 13:8

14:16

accept 91:8,17

91:19

accommodate

4:22

account 43:3

72:16 92:17

accountant 93:9

93:22 95:21,23

98:15 99:9

103:20

accounting 50:1

53:1 85:13

95:19 98:20

accurately 137:5

accused 120:17

ACH 22:17

127:18 128:6

acquiring 30:1

act 11:11,12

acted 71:15

acting 11:9 74:8

ACTION 1:4

actively 123:2

activities 110:19

112:15,18

activity 112:8

actual 22:4

24:17 131:4

added 96:6 98:7

additional 118:2

adhered 127:22

adjustment

88:15

advance 8:19,21

9:1 15:7 17:6

18:2 42:13,16

42:18,20 43:2

43:6 44:12

49:12,17,18

66:1,13,23

67:3 72:15

89:16 93:4,5

98:13 103:16

105:1,2,13,17

106:2,6,12,18

107:15 108:21

109:16,22

113:22,24

117:24 119:4

125:10,10,12

127:13,14

advanced 9:18

89:9 122:4

127:4

advances 8:6,14

10:20,23 12:23

13:4 14:19

15:1,10,17

33:2 46:13

65:7,19 66:4

67:1 72:11

104:20,21

105:2 106:5,8

106:11 110:7,8

118:13

advancing

117:21

advise 13:19

advises 118:12

advising 126:22

advocates 110:6

agency 83:1

aggressive 69:23

71:16

ago 9:2 33:2

agree 13:16

14:12 75:11

80:11 82:5

88:15 114:17

130:14 131:12

agreed 4:2

agreeing 61:5

111:24

agreement 3:8

3:12,13 20:3

21:14 22:12

25:7 26:5,6

27:3,10 28:5,6

28:19 29:5,19

33:12,18,22

35:11,12 87:9

87:10,18,20

88:2 90:22

91:14,23 92:17

93:15 100:17

101:1,6,10,13

103:7 104:9

130:15

agreements 21:2

21:12 22:19

30:18 89:3,18

94:10 98:14

99:12,22,23

100:2,24

102:11,24

115:4 118:11

119:23 133:2

133:10

Aida 129:11

al 1:4,7 4:17,18

allegation 83:5

83:14

allege 100:11

alleviate 24:2

America 105:6

American 22:23

41:21 49:16

amount 18:10

22:18,19 23:2

31:7,24 36:20

37:9 84:9,12

88:4,9 91:22

116:19 126:13

126:14 130:11

Ana 50:23

analyzed 31:9

and/or 137:17

answer 4:23

6:14,16,23

8:17 10:4,10

10:17 12:3,9

13:7,12,20

14:22 15:13

16:4 17:8 19:5

20:12,15,16

21:18,18 23:8

23:12 24:7

25:10 29:4

31:11 32:11,12

38:13 42:9

45:8,11,15

46:16 48:1

54:15,16 57:12

58:8,11,18,24

60:6 62:12,13

62:16 64:15,24

65:2,11,12,22

66:3,5,11 67:7

67:19 68:11

69:6 78:8,10

78:14 80:22

83:6 85:24

87:5,7 88:20

89:12 96:12

97:20 98:10

100:4 102:13

104:7,17

105:11 107:17

107:19,20,21

108:3,3 109:10

110:17,20,24

111:11,15,17

111:24 112:9

112:10 113:20

114:13,20,21

115:24 116:6

120:21 123:15

123:19,20

131:22 134:24

135:2,21

136:16,19

answered 5:14

49:23 50:2

67:8,10 78:15

97:7,10,16

112:2 122:16

answering 52:18

69:21 91:18

111:8 112:1,11

113:18 136:13

answers 48:10

61:20 87:17,23

93:23

anticipate 48:1

97:19

anybody 44:2

45:12,12 60:10

61:17 123:21

128:19 130:22

130:24 133:20

anybody's 8:9,9

135:19

anyway 20:16

apologize 71:12

95:15 105:15

118:8

apply 30:2

137:16

appropriate

33:6 44:6 82:3

112:4

appropriately

10:17

approved 45:10

approximately

32:16

April 101:12,22

102:21

arrangement

18:1 20:2

arrangements

18:13

ascertain 86:11

92:12

ascertained

135:4

asked 7:8 11:1

38:7 62:17

77:22 78:23

80:15 86:20

122:22,22

135:5,20,24

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 138 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 139

asking 4:19 7:20

29:18 31:10

34:24 35:7,15

35:17,21 36:15

37:19 43:23

60:15,16 62:11

62:13 66:20

67:4 69:4 73:9

74:17 75:24

77:19 97:5

104:13 105:22

111:12,21

116:5 118:16

122:3,15,23

125:12,13,16

132:17 133:16

133:22 136:10

aspect 53:6

ass 121:4

assessed 96:2,4

98:6

assigned 89:4

associated 90:22

assuming 25:23

26:1,3

attend 57:1

audited 114:24

available 59:7

AVENUE 2:9

aware 51:2,16

57:24 86:23,24

90:23 93:6

94:13,16 117:7

B

B 3:6

back 7:14 9:18

10:7 18:9

20:23 23:3

25:3 31:24

34:16,17 40:9

92:22 94:15

96:10,12,16

101:15,19,20

102:1,5,6

103:8,9,9,24

104:3 107:12

121:21 122:15

123:14,15

127:14 130:19

131:22 132:1

135:14,15

bad 47:18 56:18

128:12

balance 22:17

89:6 98:8

balances 103:3

bank 3:14 33:1

87:11 90:10

104:21 118:21

134:21 135:5,9

135:19,22

136:8,11

bankruptcy

50:22 51:4

bar 78:19

baseball 7:24

95:24 96:1

based 88:12,18

101:3 130:8,23

132:19 136:16

basically 35:12

127:15

basis 10:13 16:8

34:17 37:10

59:8

Bates 27:13 95:6

Bberman@fo...

2:11

bears 104:9

beautiful 49:7

began 15:9,16

91:2

beginning 72:21

101:12

begins 88:9

91:14

behalf 2:2,8

11:16 12:7

17:1 35:21

38:9 39:15

51:9 57:6,18

58:7 65:6,18

74:9 99:15

103:19

behave 70:14

behavior 73:2

Behavioral

50:24

belief 27:22

believe 73:10

85:8 88:7

94:14 100:12

105:16,20

107:14 120:16

120:20

belong 104:2

belonged 103:5

belongs 89:5

benefit 20:24

benefited 49:15

benefitted 103:4

103:7

Berman 2:8

6:13 8:7,15

9:20 10:3,9

11:18 12:8

13:6,14,16,22

14:1,8,12,21

15:3,12 16:2

17:7 19:4 20:8

21:6,17 23:12

23:14,22 24:6

25:8,17,20

26:10,13,19

27:8,12,15,20

29:9 30:3 32:6

33:15 35:5,20

36:14 38:12

43:20 45:22

46:17 48:2

53:10 54:7

57:7 58:8,12

58:18,22 59:1

59:5,14,20,24

60:5 62:20

64:6 65:9,12

66:18 67:8,12

67:15 68:7,11

68:23 69:3,9

69:24 70:7,11

70:23 71:2,11

71:13,19,22

72:19 73:2,8

73:15,23 78:21

79:1,10,12,18

80:22 81:3,9

81:15 82:8

84:5 85:23

87:4 88:19

89:11,23 90:12

90:17 91:15,17

92:7 95:1,4,8

96:8 97:5,8,12

97:23 98:2,9

98:21 99:1

100:1,7 102:12

104:5,16

105:10 107:17

107:19,23

108:9,17 109:4

109:10,13

110:22 111:5

111:10,14,19

111:22 112:5,9

112:12 113:8

114:11,14,17

114:20 115:23

124:17 125:4,8

125:15 132:8

132:13 136:4

136:17

Berman's 73:18

best 27:21 55:4

best-efforts

128:23

better 49:20

71:13 126:2

big 36:5 47:19

49:18 134:13

biggest 110:6

bilk 106:21

bird 109:21

112:7

bird's 136:1

birdie 135:23

bit 19:16 30:19

35:24 49:20

75:15

blanket 111:23

bless 49:16

blossomed 19:15

blow 82:19 83:7

120:18 123:17

bold 88:3

bolting 70:2

book 36:4,5

books 131:19

borrow 119:6

borrowed 31:24

32:1 42:19

borrowing

107:11

botched 9:22

bother 18:21,23

bothering 14:4

bottom 83:16

129:10

bought 30:8

brag 60:14,15

60:16

braggart 60:17

bragged 60:13

branch 40:24

41:4,7

break 4:21

69:12,16,16

82:9,13

BRETT 2:8

Bridge 112:24

113:11 135:20

135:21

briefly 126:11

bringing 136:15

bro 13:24

broadly 118:16

broke 69:19

broken 70:3

broker 106:17

128:9,18

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 139 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 140

brokering

106:23

brother 66:8

brought 40:15

buck 125:10

bucks 52:10

buildout 77:12

77:13

bully 71:18 72:5

72:6,8,11,13

bunch 24:15

131:19

business 1:6

4:18 5:4,12

10:7 11:16

15:7,11,23

18:8,11 19:10

23:1 24:4,5

26:7,8 33:4

37:2,8 39:22

41:21 44:3

45:5 49:1,5,6,7

49:9 50:4,6

51:11,22 52:2

52:12 53:1,6,8

53:9,14,15

54:1,6,10,11

54:14,19 55:1

55:17,18 56:3

64:5 65:8,20

66:17 77:6,9

77:22 78:1

85:4,4 86:12

89:22 93:4,19

98:6,13 106:7

110:16 112:15

112:18 116:7

119:4 122:2

business's 33:7

businesses 8:14

9:18,24 10:20

10:24 11:5

14:20 15:2,10

15:17,20 16:14

16:18 17:12,19

18:6 22:23

40:4,6 41:12

48:12 115:4

busy 76:3

buying 29:19

30:11 31:21

34:15 102:3

C

C 2:1 84:8 137:1

137:1

calculate 87:2

92:3

calculated 31:15

91:1 114:6

calculating

84:17,21

102:18

California 50:23

call 13:16,19

14:1,14 58:19

59:2,15 60:1

120:10 121:4

121:21 132:21

called 48:14

55:3 69:7,20

83:11 104:1

106:12

calls 59:8

candies 102:3

capacity 11:3,10

11:11,12,14

12:6,14 15:24

47:7

capital 6:24 7:3

7:7,9 11:8 45:4

64:21 66:21

106:13 113:1

113:12 117:17

135:20,22

captured 102:7

care 66:8,9

90:20

careful 68:4,19

68:19

case 7:18 13:9

14:16,17 18:4

20:23 27:16

31:21 32:14

41:18,24 43:4

43:21 59:10,21

62:9 95:5

106:4 107:6,10

108:1 125:3

cases 40:15

cash 8:5,14,19

8:21 9:1 12:23

13:4 14:19

15:1,7,10,17

17:5 18:1 22:5

33:2 42:13,16

42:17,20 43:2

43:5,6 44:12

46:13 49:12,17

49:18 65:7,18

66:1,4,12,23

67:1,3 72:10

72:15 89:16

93:4,5 98:13

104:20,21

105:1,2,2,13

105:17 106:2,5

106:6,8,10,12

106:18 107:14

108:21 109:16

109:22 110:7,7

113:22,22,24

119:4 125:9,10

125:12 126:10

127:13,14

CB-- 75:10

CBSG 5:14,20

5:22,24 6:4,6,8

7:4,7,13 8:13

9:3,11,17,24

10:7,19,23

11:5,7,10,11

14:19 15:1,6,9

15:16,18,19

16:6,14,18

17:4,12,21

18:1,2,20 19:3

21:4,8 22:7,13

23:17 25:6,9

25:14 26:5,7

28:14,17,20,22

29:2,19,22,24

30:8 32:4 33:7

33:9 34:11

35:1,10 36:2

36:12 37:23

38:9,11,16,18

38:21,23 39:2

39:9,11,15

40:1,3,6 46:15

46:21,23 47:2

47:4,7,10,10

48:7 49:22

50:1,5,6,9

54:23 55:12,24

56:12,20 57:6

57:18 58:7,17

60:4,12,19,24

62:3 63:4 64:1

65:6,18 66:16

74:9,12,23

75:1,5,8,11

76:10,11,24

77:3,6 84:16

84:20 85:21

86:7,8,11,15

86:22 89:9,20

89:21 91:1,5

91:13,22 92:2

92:11,16 94:2

94:5 95:10

96:18 98:8

99:12,15

100:12,22

101:21 102:10

102:16,18

103:16,19

107:8 112:17

112:17 114:6,9

114:24 115:4

115:21 116:4

117:21 118:13

118:20 119:7

119:13 122:19

123:22,23

130:3 131:9

133:5 134:14

CBSG's 29:5

53:6 74:2,5,9

115:8,13,17

CBSG/Par 17:2

32:15

cc'd 83:17

ceased 50:8

certain 21:15

certification 4:4

137:15

certify 137:4

certifying

137:18

CFO 54:23

change 10:12,16

16:7,9,10

87:17,23 93:18

changed 15:19

changes 10:12

10:13

charged 42:2

94:17 98:7

101:11

charges 93:9

115:21 116:4

chose 103:7,8

119:11

circumstance

66:14 75:12

City 48:21,24

CIVIL 1:4

clandestine

45:13

class 102:22

clear 7:6 14:15

49:21 53:4

59:3,7 69:5

70:1 99:2

112:21 118:16

119:22

clicking 123:8

client 4:17 13:19

16:20,24 18:5

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 140 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 141

18:12,19 19:3

19:6,8,8,20

24:18 25:7,15

26:3,6,8,22

29:14 30:24

32:4,14,24

34:17 36:5

37:9 41:17

42:1,2,13,16

42:17,19 49:17

56:18,23 65:24

65:24 66:8,12

66:12,20,23

67:3 69:7

72:15,15 77:3

77:5,19 79:24

80:6,6 82:24

83:17 85:21

88:24 89:9

92:21 94:8,11

94:17 96:18

98:8,12 99:12

99:15,17

100:10 101:11

103:22 104:3

104:12,14,18

105:16 107:14

108:16 109:15

109:22 111:16

112:21 113:1

113:12,22

114:3,6 117:14

118:12,20

120:5,9,23

121:1,3,6,14

121:16,23

122:4,7 123:7

124:1,3,6,9,13

124:23 125:1,7

125:11,11

126:5,17,22,23

127:1,3,6,10

127:17 128:10

128:18,23

130:9 131:18

132:6,11 133:9

133:18 134:6

134:12 136:8

client's 12:13

24:16 29:20

30:21 31:8,15

32:18 34:16

35:2 36:21

73:2 77:8

82:20 83:7

86:12,16 87:2

89:22 92:3,12

92:16 93:19

95:18 98:6

101:7,22

110:19 112:7

112:14,18

130:15 133:7

134:21 136:11

clients 18:6 23:1

37:3 49:20

61:9,9 72:9,9

72:10 78:2

106:7,21 110:7

123:9

close 108:12

closed 11:6 34:5

126:18,20

Coast 50:23

83:2,12

code 77:14,15,16

77:17,21,22,23

78:3,4,17,24

79:21 80:1,5

coequal 54:3

cold 132:21

Cole 54:23

55:15,19 83:17

85:14 126:23

130:3

collateral 17:13

17:16

collateral-based

17:21

Collateralized

17:17

colleague 69:8

collect 32:8

99:14 100:11

134:19

collected 23:21

24:5

college 95:24

colon 126:19,20

come 5:17,19

20:20 25:16

26:18 37:7,22

65:21 76:3

77:24 103:17

104:4 121:10

123:15 133:11

134:2

comes 22:14,17

22:19 25:3

127:12

comfortable

59:14

coming 22:8

66:20 70:10

110:11,13

126:14

comma 126:18

commencing

1:16

committed

131:20

common 103:19

103:21 116:8

communicatio...

55:16 94:4

134:5

companies

12:12 37:20

41:2 76:1

127:13 131:1

company 6:12

6:18,20 7:1,22

8:4 9:4,15 11:7

16:15 22:22

28:21 36:10

37:19 42:20

43:2 44:13

45:9 48:14

60:4,20 63:7

63:10 64:22

73:20 74:17

75:13,17,19,22

92:22 93:1,5

95:20 96:3

106:12,16

107:4 109:2,11

113:5,7,13

123:3 128:22

129:23 130:24

competitor

45:12

complained

117:18

complaining

117:3

complaint

116:23

complete 1:6

4:18 5:4,12

51:22 52:12

53:8 71:9

completed

127:19 128:3

compliance

45:10 46:3,5

46:15

compliment

53:23

comply 41:2

concept 8:13

23:9

concluded

136:22

condoning 73:2

conduct 111:18

confused 5:16

confusing 95:5

118:10

confusion 24:1

59:15,17 60:1

Congress 67:1

connection 51:3

51:9 92:17

considered

122:8,9,13

construct 23:6

23:11 26:12

construction

20:22 77:12,13

77:20

consulted

128:13

contact 113:12

contacted 83:1

contacting 113:1

123:9

contained 137:5

contempt 51:3

contingencies

107:12

contingency

21:20,22 41:24

72:9

continue 13:19

70:4,11 71:3

continues 91:5

continuing

81:23 106:10

continuously

115:20

contract 19:17

20:17,18 32:13

33:10 39:2,7

84:10,10 85:3

85:6,8,16,21

86:4,9,19 87:1

87:1 93:6

127:22 130:11

contracts 32:21

85:5 92:24

126:9

contribute 63:24

64:5

contributed

62:2 63:5,9,13

65:17,19 66:17

contribution 7:7

7:9

control 63:21

137:17

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 141 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 142

conversation

61:16 84:22,23

134:13

conversations

84:19 134:11

copy 126:2

136:11

corporate 45:9

45:17

corporation 5:7

5:11 16:10

correct 21:4,12

21:13 29:7

33:5 60:22

61:1 64:2 70:6

73:5,5,6,7

76:15 83:18

110:21 115:22

116:5,10,11,12

118:4 137:7

correcting 73:3

73:10 116:8

correction 87:22

correctly 127:23

corrects 73:4

cost 21:21

126:15

counsel 4:2 71:7

113:19

couple 83:24

126:19

course 15:8

24:22,24 38:6

39:19 83:9

court 1:1,17

13:14,21 14:2

14:15 21:24

35:22 47:15,21

50:22 59:9

63:15,18 69:11

69:15,19 75:19

79:6 81:19

99:24 131:24

137:13

Courts 40:23

coward 124:10

created 65:6,18

95:14

creating 9:19

10:1

current 54:23

currently 12:5

74:23 112:15

122:19 134:18

customer 18:7

cut 46:22

D

D 3:1

d/b/a 5:5,9,11,12

5:13,14 51:22

52:12

dailies 126:20

126:24 127:19

128:7

daily 22:17 31:6

36:20,21,22

37:8 55:16

84:9,10,12,24

85:2,11,15,20

86:4,8 87:2

88:3,9,16 91:2

91:23 92:3,12

93:14 99:19

101:2,8,13

102:18 114:3

116:18 117:8

118:3 130:7

133:18

date 27:10

dated 83:20

dates 94:11

day 10:12 31:11

32:15,16,23

40:21 72:6

76:22 85:3,4,4

88:10 91:9

101:12 108:11

108:21,24

109:1 116:21

135:18

day-to-day

10:13 16:7

days 32:16 33:2

49:12 66:13

103:1 109:1

deal 20:23 21:22

64:22 77:2

86:10 90:6

117:2,9,10,10

117:13 131:2

deals 12:11,12

12:19,21 15:21

17:3 76:12

93:2 98:12

117:10

Dean 38:5,6,8,9

38:14,15,15,18

38:20,23 39:2

39:7,7,17 57:1

57:6

debate 40:21

debit 90:21 91:5

debited 92:20

101:21

debiting 91:14

debits 92:16

debt 131:16

132:7,11

deceive 64:4

66:15

deceiving

106:19

December 85:3

85:8,16,17,22

86:4,9,12,19

86:24 87:18,19

88:2 90:9,21

91:3,6 92:13

94:14,14

deception 66:19

66:21,22

decisions 37:22

Deck 11:7

declaration 3:10

50:15 51:8,16

53:7

decrease 101:8

decreased 101:7

default 74:2,5,9

74:12,18

Defendants 1:8

2:8

defending 77:19

deficit 92:23

definitely

100:13 104:18

definition 24:10

33:11,17,21

definitions

33:19 64:20

degree 45:6

118:7

department

39:5 45:10

92:5

depends 17:15

depleted 126:10

deposed 117:12

deposition 1:13

4:16 8:3 9:9

12:11 13:15

14:2,7,11

18:16 24:17

50:3 59:13

61:11 63:23

66:6 71:4,10

71:15 72:3,24

73:9,14 79:10

80:9,24 81:2

81:16,18,21,22

82:9 97:18

104:12 108:15

110:21 111:18

114:16 122:23

123:1 136:21

depositioning

72:12

depositions 37:7

described 20:2

describes 115:16

describing 115:8

115:12

DESCRIPTI...

3:7

designated

14:15

designed 93:6

98:12

despite 55:12

determine 22:13

28:14,17,23

29:2 31:14

33:7 86:7,8,15

determined

84:12 88:4

determining

22:7 84:9

119:14

Detty 1:17

137:12

dialogue 79:17

79:19

difference 22:3

96:11 122:1

different 6:22

10:16 12:12,14

12:18 16:5

17:13,18 18:4

18:19 19:2

21:2,9,12

40:15 41:15

44:3 64:20

76:1,5 86:21

97:9

differential

116:12

differently

37:21 65:4

122:12

differs 18:1

difficulty 99:7

99:18

dimwits 42:17

DiPietro 19:9

42:3 43:6

49:11 76:14,21

76:23 84:16,20

105:8 110:20

112:23 113:14

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 142 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 143

116:14 119:3,3

direct 3:4 4:11

58:24 137:17

directing 58:10

disagree 72:20

82:5 130:14,17

discover 108:16

109:15

discovered

120:19

discovering

110:18

discovery 14:6

59:10,21

108:12

discuss 133:11

discussion

133:17

discussions

85:14,19 94:1

100:10

disgusting

124:22 125:1,2

125:3,13,14

dispute 20:18

disrespectful

69:10

disrespectfully

69:4

distortion 71:9

District 1:1,2

50:22

Division 50:23

document 27:24

31:3,17 40:10

44:6 45:14

95:1,3,10

98:19 108:10

110:9

documents

24:14,17 95:5

99:6 108:6,13

dogs 49:8

doing 4:15 5:19

11:16 33:3,4

41:21 54:5

63:20 71:2,3

73:8 78:6 83:3

92:2,11 93:8

104:22 105:3

111:6 112:14

112:17 118:21

dollar 126:13,13

dollars 41:23

121:13 124:7

127:19 128:4

doors 34:4

double 70:5

doubt 60:13

126:7 134:10

draw 130:7

due 30:12

108:10,11,14

116:19

duly 4:8

dumb 83:14

125:13

E

E 2:1,1 3:1,6

137:1

e-mail 3:11,17

3:18 82:15

83:16,18,20,22

84:15 94:4

98:22 117:5

125:21 126:4,8

128:1 129:5,10

134:2,3,5

e-mails 28:13

83:24 116:16

earlier 49:23

86:20 122:22

126:8,12

early 20:22

earned 75:21

earnings 75:16

75:17,17,21

76:4,7,10

ease 90:20

easier 109:7

East 83:2,12

EASTERN 1:2

eat 61:24

eating 66:7

educate 30:23

33:18 35:15

educated 30:19

education 96:1

effort 21:21

100:11 128:24

efforts 134:18

either 86:19

elaborate 82:22

95:21 118:24

eluding 33:23

Email 2:6,11

employee 11:15

15:24 38:16

129:12,22

employee/emp...

11:3

employees 16:9

46:7,21,23

129:18,20

ended 117:3

enforce 99:21

100:2

enforcement

82:24 83:1,3

83:10

engineering

77:20

enhance 18:11

ensuring 20:5

entered 18:19

19:3 76:23

77:5

enters 25:6,14

entire 71:10

entitled 21:14

26:15 29:5

102:11,17

108:15 127:10

entity 9:10

entry 95:19

equally 54:3

equity 22:22

64:21

escalation 117:8

escalations

116:24 117:4

escrow 43:2

especially 37:3

78:1 107:23

116:11 120:17

121:10

ESQUIRE 2:2,3

2:3,8

essential 84:8

establish 58:21

99:5

established

25:19 101:3

et 1:4,7 4:17,18

event 57:1 58:15

115:11,19

116:3

events 57:4,6,15

58:1 115:16

evidence 137:5

evil 67:2

exact 84:23

exactly 22:3

25:4 54:5 93:7

105:3 135:24

exam 78:19

EXAMINATI...

3:4 4:11

examined 4:9

example 16:17

20:3 27:1

examples 16:22

Exchange 3:11

3:17,18 82:15

125:21 129:5

executed 28:19

Exhibit 27:4

43:8,11,14

44:17,23 50:16

82:16 87:10,11

87:12 88:1,7,8

90:9,11 91:2,6

94:22 99:7

101:1 116:14

119:19 125:22

129:6

exhibits 88:17

90:15

expand 17:19

22:23 23:1

expect 107:4

127:21

expense 130:24

expenses 130:10

130:10,22,24

131:7

experts 82:23,24

explain 17:20,22

17:24 133:18

explained 12:10

explore 131:17

eyes 70:2 80:17

96:3

F

F 137:1

Facebook 43:15

43:17,19 44:2

44:2,5,7,17,18

44:19,21,22

45:15,17,19,21

45:21,23,24

46:1,4

fact 33:1,23

35:20 40:14,18

55:12 73:1

106:17,20

128:20 131:3

fact-finding

108:15

factor 131:2,2

factored 19:21

98:13 131:8

factoring 17:13

17:18,24 18:13

20:1 28:6

30:18 32:20

50:4 52:24

53:8,13,14

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 143 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 144

54:6,9,9,10,14

54:18,20 89:3

fair 25:10

false 60:24 61:5

61:7

familiar 10:19

120:4

family 121:18

122:2,5,8,9,13

family's 121:9

121:16,24

fat 121:4

February 13:10

86:19 87:1,20

92:18 93:13

94:8 100:24

FEDULLO 2:3

73:17 95:13

117:12

fee 41:24 94:17

95:19 96:2,5,6

96:13,16 97:11

98:6

feel 53:18,19,19

56:18 72:1,1

82:6

fees 61:8,12,24

72:9 96:21,23

97:4 106:17,23

106:24 107:11

fighting 106:5

figure 80:5

84:13

file 86:22 90:1

128:22

filing 4:3

finance 18:7

64:22 75:15

76:4 94:17

95:19 96:5,6

96:13,16,21,23

97:4,11 98:6

102:20 118:7

financed 101:16

financing 105:9

109:9

find 69:22

105:21,23

106:1,2 107:16

127:5 130:7,8

fine 14:13

111:17

finger 69:22

finish 21:6 46:10

47:24 61:22

63:1,17 82:9

92:7 97:2,5

125:16 136:4

firm 6:3 77:14

105:9,17

107:15 108:22

113:15

first 4:8 8:24

11:9,14,23

15:9,16 39:11

39:14,17 71:11

76:19,21 77:5

84:3 88:8

101:18 116:23

117:2,18

123:13 129:11

130:21

fit 12:13

five 44:4 82:11

fixed 22:20

26:17 133:11

133:19

flip 91:7

FLOOR 2:9

flow 126:10

follows 4:9

font 126:3

fool 106:14

foregoing 137:6

137:15

foreign 93:10

Forge 57:2

form 4:5 6:13

7:3,6,22 11:4

43:6 66:17

formal 96:1

formally 55:12

56:4

formation 6:11

formed 7:1 9:4

forms 9:17 10:1

10:19

formulate 37:19

forth 28:5 91:11

forums 116:6,9

founded 51:22

52:12

founder 6:20,21

founders 6:18

founding 49:22

FOX 2:9

fraud 42:22

124:21 131:20

free 14:13

freeze 126:19,24

127:18 128:6

Friday 83:20

friend 19:9

76:14,20

front 66:24 83:4

98:15 117:16

fucking 69:20

full 55:10 58:5

58:16 97:17

117:14

fully 137:5

fund 10:20 65:6

65:17

funder 105:9

funding 3:9,15

5:5,7,13,13,15

9:11,24 10:2

11:7,17,24

12:7 17:2

32:15 41:11

42:4 43:10,16

43:24 44:11,12

44:14,15,16

46:5,7 51:23

52:13 94:21

117:3 126:15

126:21 128:20

128:24 129:12

129:13,16,18

130:13,16

Funding's 43:15

43:19 44:18

45:4,19,23

Funding/CBSG

48:11 61:19,20

fundraising

57:5

funds 9:18,19

119:9

funny 78:20

further 13:10

70:23

future 18:4

31:19,19,21

33:24 34:6,7

34:10,12,15

40:12 41:9,13

G

G-L-A-C-E

126:11

garbage 45:11

general 62:18

generally 118:19

generated 21:16

23:20

gentleman 21:23

68:10,12

getting 24:23

47:18 60:14

110:21 131:20

gibberish

120:20

girl 56:16

girls 102:3

give 16:17,22

18:9 25:2

47:19 62:9

76:3 102:22

111:22 132:18

given 32:23

117:14

gives 73:3

giving 93:24

103:2 108:1

glace 126:11

glance 126:12

glasses 98:17

go 13:10 18:8

20:4 22:7 25:2

40:9,23 41:4

41:15,22 50:8

57:3,5 61:18

63:2 66:23

69:11 71:14

77:23 78:6,7

85:3 91:7

106:7 107:11

115:10 117:17

123:14 125:11

128:15 135:15

goal 45:4

God 49:16

goes 103:11

127:15 131:1

going 4:19 13:18

17:1 30:17

41:22,22 45:11

46:8 47:17

51:14 56:7

58:20,21,24

59:11 63:2,18

65:4 70:19,23

71:6 73:6 78:8

78:10,11,14

81:17 82:21

83:5 93:13

96:12 97:20

100:17,18

101:2,11

110:17 116:9

116:12 118:13

120:21 121:10

122:2 125:5,17

136:15

golf 39:19

good 4:14 17:22

41:21 53:19

54:1 74:19

83:3,10 105:6

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 144 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 145

113:16 136:3

gotten 26:2 89:6

97:18

government

40:24 41:4,7

grand 32:17

61:13 78:12,12

gratitude 36:5,6

great 53:23 55:8

58:2 109:2

119:2

gross 37:11,14

37:16

Group 1:7 4:18

5:4,12 51:22

52:12

Group's 53:9

grow 18:6 19:10

45:5

guard 19:15

guess 8:2 32:1

32:17 49:15

51:7 54:15

87:7 113:16

127:24

guessing 113:17

gum 100:18,19

103:23,24

guy 62:13,15

66:24

guys 9:14 10:15

16:8 21:20,20

21:21 22:24

32:17,20 40:11

41:5 42:1,21

42:22,23 49:10

49:11,13,13,14

49:17,17,18,19

61:12 64:22

65:23 66:24

72:17 75:15

78:18 82:22,23

82:23 105:2,4

105:5 106:3,18

106:19,20

107:11 110:6

122:11 125:2

127:11,11,12

127:14,15

H

H 3:6

hair 48:17

hand 87:6

handle 51:7

handled 53:1

happen 101:6

happened 85:17

96:9 134:1

happens 24:14

106:15,15,17

131:14 132:5,6

132:23

happy 41:2

hardest 47:18

have's 35:18

Haverford

51:18

he'll 67:15 100:7

111:11,24

head 70:3

Health 50:24

hear 48:14

68:13

heard 8:24

48:16 72:20

108:18 109:17

109:18,19

113:13

hearing 59:7

height 33:4

held 1:14 82:13

help 18:5 22:24

54:2 84:4

106:21 120:7

125:11 128:23

helped 19:9

Heskin 2:3 59:4

64:23 65:11

67:1 68:6

90:14 106:6

110:10 136:14

hey 66:24

Hi 130:6

higher 74:14

highest 45:6

hindsight 119:7

hired 54:23

history 3:15

94:22 95:12,16

HMC 1:4 3:15

4:17 16:21

29:3 52:9

94:21 112:23

113:4,5,8

hold 35:22 47:15

63:15 99:24

134:21

holdback 30:13

30:20,21 33:6

hollering 70:1

homework

49:19 77:24

79:22

honest 116:22

Honor 106:9

hooked 67:3

hope 121:5

124:24 127:5

hoping 24:1

26:7

hosted 57:1,17

hosts 57:6

Hotel 57:2

hour 116:20

hours 14:14

66:7 118:6

house 49:8

82:20 83:8

120:18 123:17

human 93:3

hundred 55:6

husband 52:3

hypocrisy 42:22

42:22 67:4

72:14 110:1

127:15

hypocritical

67:5 106:9

I

idea 8:4 38:1

86:6 91:4 92:1

116:19 133:1,3

133:8

ideas 8:8,9,11

9:16 126:19

identification

27:4 43:11

50:17 82:16

87:13 94:23

119:19 125:23

129:7

identified 19:10

21:1,11 22:9

22:11 28:3

idiots 49:11

ignore 90:20

illegal 56:15,15

56:17

imagine 90:7

immensely

19:10

imposed 95:20

96:5

inaccurate

73:19

inappropriate

69:23

inception 55:11

include 52:1,3

included 89:21

122:4

including 12:17

12:18

income 30:21

31:1,9,16,18

32:18 33:8,12

33:13,17,20,21

34:2,16 36:21

36:22,22 37:5

84:13,13,17,21

86:12,16,18,20

87:2 88:5,13

88:18 89:3,5,7

89:10,14,20

90:4,5,5,7 92:3

92:12 93:18

101:3,7,23

114:6 118:2,13

118:20 130:8,9

130:11,12

incoming 120:9

incorporated

1:4 4:17,18 5:8

5:20,22 6:1

113:8

incorrect 26:20

34:13 89:7

incorrectly 6:23

increase 85:20

101:2 116:18

118:3 130:7

increased 85:12

85:16 86:5

91:22 93:15,16

96:19 101:13

increases 88:12

94:2,6 114:3

increasing 117:1

independent 9:8

9:10 76:12

individual 65:17

industry 110:6

info 126:12

information

108:16 111:1

114:2,5,8

initial 9:17 19:7

19:7 77:2

initially 9:4

insinuate 131:6

insinuating

40:20

instances 17:4

instruct 113:19

instructions

14:4

instructs 107:19

insult 46:9 125:7

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 145 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 146

interest 6:4

29:19 30:1

40:4,7,8

115:21 116:4

interested 66:15

interesting

110:8

interpret 59:21

59:22,24

interrupt 14:10

intimidate 79:14

79:14

introduce 39:9

invest 74:17

75:1

invested 64:22

65:5 74:21

75:4,8,10,13

investing 66:16

investment 76:5

investments

75:24

investor 60:3,4

60:19,19 61:14

61:15 62:1,2

63:4,4 64:4,10

64:12,16,17,19

64:20,21,21

74:4,5 75:3,4

investors 58:6,6

58:16 75:13

115:20,21

invoice 17:13,17

17:24 18:13

19:20,21 20:1

20:4,6 21:1

22:8,10,11,14

22:18 23:17,18

23:19 25:15

26:17 28:9,15

28:18,21,24

29:3,7,20 30:8

30:12,22 31:1

31:7,15,22

32:3,5 34:8,9

35:2 36:12,13

119:15 132:6

132:24 133:6

invoices 20:7

21:8,11,16

30:1

involve 17:5

involved 6:11

10:23 11:2,4

17:4,12 28:2

38:2 50:21

53:5 56:2

99:11,14

119:22 123:2

involvement 9:3

9:7,19 18:18

19:2,8 48:6

50:9 55:11,23

56:1,22

involving 50:23

irrelevant 13:6

13:8 14:17

33:24 52:9

102:9

ISO 11:4 132:20

issue 7:20 59:13

issued 14:6

16:24 51:3

issues 4:20

128:14

Ivy 43:1 70:13

J

January 86:16

91:6,8,13

92:13,18

Jason 30:14

36:24 42:24

53:20,21 77:15

80:1 103:12,14

109:23 113:2

128:15

job 24:14,17,19

25:3 26:2 36:7

78:6,11 83:3

83:10 119:7

128:23 131:14

132:4

jobs 20:21,22

131:4,5,8,10

131:13

Joe 54:23 83:17

84:8 120:9

133:10,13

joe@parfundi...

83:18

Joes 133:20

Joseph 1:13 3:2

4:8 51:17

136:22

judge 13:17,19

14:1,5,14 37:5

40:18 42:19

46:9 58:19

59:2,3,6,15

60:1 68:13

71:5 81:18

judicial 41:7

justify 83:5

Justin 2:2 30:15

30:16 36:24

37:2 42:24

80:4,4 82:9

83:3 103:13,14

108:8 110:2,3

113:3,4 125:17

128:16,17

Justin's 73:18

Justin/Jason

40:9

K

Kara 19:8,9

42:2 49:11

76:14 95:14

112:23 130:6

keep 9:11 32:20

34:13 35:21

36:15 63:18

70:7 122:23

123:8 125:4,15

125:17

keeping 103:4

keeps 114:9

Kenetic 106:13

kept 19:22 103:2

keyman 131:15

kind 9:5,7 12:1

12:2 75:16

117:9

knew 47:14 93:7

know 4:22 5:7

5:18,21 6:2,15

6:21 7:3,12,15

7:16 8:1,9,16

8:19,21 9:5,5,6

9:12,15,15

10:16 12:3,3

13:2,9 15:4,9

15:16,19 16:16

18:14 22:16,19

23:14,23 24:8

24:11,13 26:4

27:15 28:12,20

29:4,23 30:10

30:11 31:5

32:7,8,11,12

32:13 33:10,14

33:19,19 34:21

35:10,16 36:2

36:4,7,8,10,11

36:16,18 37:16

37:17,18,21,23

38:2,5,6,20

39:1,1,4,6,7,11

39:14 42:4

43:16,22,23

44:9,14,16,18

44:21,22 46:1

46:7,8,14,17

46:19,22,23

47:3,6,9,21

48:5,5,9,10,13

48:23 49:1,13

49:24 50:8,11

51:14,15 54:20

54:24 55:1,14

55:18 56:5,6,6

56:7,9,13,21

56:24 57:8,14

57:19 58:7

60:6 62:4,6,14

62:18,20,24,24

63:2,6,8,11,14

63:19 64:7,13

64:13,13,14,16

64:17 65:13,14

66:10 67:9,12

67:14,15,17,20

68:15 72:17

74:3,8,13,14

74:16 76:9,9

76:23 77:5,8

77:15,15,18,18

77:21 78:1

80:1,7 83:23

84:1,2 85:5,11

85:13 86:3,7

86:11,15,17,18

86:21 89:24

90:24 91:1,22

92:2,6,10,11

92:21,24,24

93:10,15,17,18

94:7,8,11 95:7

95:12,18 96:11

96:15,17,17,20

96:22,23 97:1

97:3,8,12,16

97:19,21,21,22

98:1,5,11,14

98:20 99:9,10

100:5 101:9,21

101:24,24,24

102:4,9,10,17

103:8 104:6

105:24 106:4

106:13 109:4,8

109:11,12

110:13,13,15

111:1 112:2,9

112:10 113:14

113:17 114:18

114:21,22,24

115:2,3,6

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 146 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 147

118:9,14,15,19

118:22 119:10

119:13 120:1

120:13,13,24

121:2,12,15,21

122:11,20,21

123:11,13,20

123:20,23

124:5,8,11,11

124:16,19

127:3,5,6,8,11

127:16,24

128:2,5 129:15

129:19,22,24

130:4,6 132:9

132:14 133:5

133:13,21,23

134:3,3,20

135:21,22

knowledge 7:12

12:24 15:6

27:22 28:22

38:24 39:3

41:12 44:13

55:5 60:9,11

64:3 94:5

118:12

known 123:16

knows 14:1

105:3

L

L 1:17

Lacquer 48:15

48:16,19 50:10

55:3,4,10

lady 61:13

LaFORTE 1:13

3:2 4:8,14

51:17 52:24

53:13 69:20

71:10,13,14

81:10 82:19

87:16,22 88:2

92:19 110:2

113:10 118:18

120:9 126:2

129:10 135:11

136:22

LaForte's

131:21

LaForte-1 3:8

27:4 28:3

33:22 34:20

36:3

LaForte-10 3:17

125:22

LaForte-11 3:18

129:6

LaForte-2 3:9

43:11

LaForte-3 3:10

50:13,16

LaForte-4 3:11

82:16 83:15

99:1

LaForte-5 3:12

87:10

LaForte-6 3:13

87:11

LaForte-7 3:14

87:12

LaForte-8 3:15

94:22

LaForte-9 3:16

119:19

laid 14:5

language 88:8

Laquer 56:12,16

late 20:24

Lau 129:11,11

129:13,20

130:1,5,19

133:9,13,15,17

133:18 134:6

134:12

laughing 110:5

law 40:24 41:1,2

41:7 77:14

80:9 82:24

83:1,2,9 106:5

113:15

lawsuit 4:16,20

50:20 134:19

lawyer 6:2 10:14

31:5 68:14

103:20 132:15

132:18 133:3

lawyers 82:23

league 43:1 51:7

70:13 95:24

leaning 69:20

learn 32:21 37:2

37:8 78:18

102:20

leaving 81:21,21

92:23

legal 39:5

legislative 40:23

41:4

lender 10:22

128:24

lenders 12:15,18

lending 39:22

lesson 76:4

let's 27:1 68:7

69:24 70:4,11

71:3,19,19,20

72:19 73:8,11

80:22 82:9

98:2,3 101:17

101:18 113:4

116:21 125:4

125:15 128:15

131:17,18

136:4

letting 71:12

76:9

leveraged 131:4

liar 123:16,16

Liberty 1:15 2:4

lie 57:14 60:22

60:23 61:9,13

life 52:7 72:24

80:12 106:15

likes 51:24,24

52:2

limit 64:23

limitation

114:15

limitations

59:19,20

limited 14:6

59:12 131:9

limiting 59:9

line 56:7 68:16

Lisa 3:10 7:13

47:1 48:6

50:15

listen 56:5 118:7

litigate 105:2

litigation 105:9

little 19:16

30:18 35:24

49:19 60:13

64:21 75:15

76:4 97:19

126:2

live 51:18

lives 122:12

living 80:6

LLP 2:9

loan 40:6,8,13

40:17,20 41:8

41:13 44:24

loaned 41:11

42:4

loans 40:3,21

115:5,17

long 9:2 129:15

look 34:24 36:4

36:6 40:11

44:6,20,23

46:4 53:23

77:23 78:6,7,9

78:11,15,18

79:22 80:1,4,4

88:1 90:10

101:1 102:24

117:14 134:8

135:15

looked 83:11

looking 31:13

33:2 35:11

44:9 74:17

79:16 90:2

104:20

looks 28:9 83:17

116:22,24

120:8 128:2

130:12

lose 106:23

107:1,5,10

loses 107:4

loss 104:10

lost 106:16

lot 6:22 11:20

13:10 57:3

64:19 76:1

86:21 93:23

98:15 106:4

110:15 119:5

133:20 134:14

134:16,17

Loud 80:16

Lounge 48:15

48:16,19 50:10

55:3,4,10

56:12,16

loving 49:7

lower 74:14

lunches 102:4

lunge 81:5,6,8

81:11,12

lunged 81:7

M

maintain 128:18

128:23

making 27:16

29:9 47:22

70:4 94:12

99:19

man 116:9,12

manes 31:12

March 1:10

137:7

marital 52:6

mark 42:14 43:7

119:12 125:18

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 147 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 148

129:2

marked 27:4

43:11 50:13,16

82:16 83:15

87:10,11,12

94:22 119:18

125:22 129:6

Market 1:15 2:5

47:11

Marketing 9:13

11:12,15,24

12:6 16:1 50:7

93:21 123:24

128:8,21

132:20

Marking 39:6

married 51:18

matter 33:1 37:1

40:14,18 47:22

51:10 72:22

106:17,20

131:3 133:12

137:7

matters 43:23

mavin 106:6

maybes 35:17

MCA 112:7

114:9

McElhone 3:10

7:13 47:1,4,7

48:6 50:15

52:11

mean 6:22 9:6

10:13 11:3,3

11:19 12:1

17:16 27:9

32:3,18 41:3

54:9 56:1 73:6

77:13 86:21

91:19 103:17

103:18 106:9

109:24 114:11

127:22 128:4

means 6:21

30:10,21,23

31:7 54:20

56:2,3 68:19

68:20 86:18

100:6 114:19

126:12 137:17

meant 79:8 99:9

133:15,21

134:4

meet 39:17,19

76:19,21

meeting 94:9

members 45:9

memory 19:1

mentioned

76:14

merchant 3:8

8:5,14,19,21

9:1 12:23 13:4

14:19 15:1,7

15:10,17 17:5

18:1 44:12

65:7,18

merchants 13:5

merit 68:17

mess 47:17

message 121:7

messages 3:16

119:13,18

120:5,22

met 39:12

middle 88:3

million 19:19

41:19 92:21,22

92:23 96:3

106:16

millions 121:8

121:13 124:7

127:19 128:3

mine 123:13,14

124:12

minimum 30:24

minor 95:24

minus 130:9,10

minutes 82:11

misappropriat...

119:8

mischaracteri...

30:4

misperformed

131:14 132:4

mistake 87:15

mistaken 135:13

135:14,17,17

mistaking

135:18

mixed 29:15

model 130:23

moment 71:14

Monday 126:18

127:20

money 7:16,17

19:22 20:19,20

22:1,13,16

24:19 25:2,3

25:22 26:4

34:17 37:4

38:18,20,23

39:22 40:4,6

41:11,13,20

42:5,20 43:5

49:20 62:3

63:24 64:5

65:6,19,24

66:1,16 72:8

72:10,10 75:13

75:18,21,22

76:2,12 78:2

82:20 89:21

100:20 101:20

102:10,17

103:3,4,12

104:4,15,23

105:1,5 106:22

106:22 107:4,7

107:8,15

108:21 109:23

116:23 117:14

117:18,22

121:9,11,17,18

121:24 122:3,4

126:14,23

127:1,9,10,11

127:12,12,13

127:16 134:14

134:16,17,19

monies 7:13,22

22:7 25:15

28:15,17,23

29:2 39:15

57:18 58:7

63:9,13 65:17

66:17 74:21

75:1,4,8,10

89:9 96:7,18

98:7 99:14

100:11 103:17

105:17 113:15

122:14,17

127:7 131:9

132:5,23

monitor 92:2,12

112:14,17

monitored 114:6

monitoring

118:20,22

119:8

month 32:16,17

32:19,24 33:3

33:5 42:18

127:20 128:4

monthly 31:1

34:16 36:22

37:5,10,11,14

months 136:12

morning 4:14

68:17

motion 136:15

mouth 42:11

67:23 68:1,10

68:10,19,20

135:8,10,12

move 58:21

73:11 118:16

multi-compou...

20:10

N

N 2:1 3:1 137:1

nail 48:17,21,22

55:2

name 19:9,13

30:16 36:24

43:1 44:3,4

48:18,19 53:21

62:12 80:2,3

113:4,7 123:21

136:1

nature 20:18

77:8

necessarily

118:3

need 4:21 40:11

45:5 68:18

80:10 97:2

99:5 120:10

123:14 133:11

needs 12:13

24:18 25:22

negotiating

99:11

net 130:12,15

131:6

never 40:19 44:1

48:16 50:6

55:12 56:4

63:9,12 70:14

70:14,16 72:3

75:7,10 78:19

80:12,13,18

81:7,10 96:9

96:10,11,13

99:23 103:3,9

104:4 110:15

113:13 116:3

121:9 131:1

135:8,19 136:8

new 2:10,10

40:18 97:13

nice 52:1,1

53:23,24 54:3

nonowner 22:22

nonsense 120:20

Nope 6:9 28:1

86:14

Notary 1:18

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 148 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 149

noted 137:5

notes 90:20

137:6

notice 1:14

notwithstandi...

93:12

November 58:5

58:15 94:16

95:20 96:18

number 3:7 36:9

36:9,12

numbers 88:16

89:7

nuts 121:8

O

O 137:1

oath 53:5 136:7

136:10

object 107:18

objected 65:10

objection 6:13

8:7,15 9:20

10:3,9 11:18

12:8 13:6 15:3

15:12 16:2

17:7 19:4 20:8

21:17 23:22

24:6 25:8,17

25:20 26:10,19

30:3 32:6

33:15 35:5

36:14 38:12

53:10 54:7

57:7 59:9 60:5

64:6 65:9

66:18 85:23

87:4 88:19

89:11,23 96:8

98:9 102:12

104:5,16

114:11 115:23

132:8,13

objections 4:4

112:4

obligated 132:11

obligation

107:20,21

116:10

obligations

17:17 94:9,12

obnoxious 79:5

80:16

obtain 18:8

136:10

obtained 105:8

136:8

obvious 90:1

119:8

obviously 83:13

89:13 117:16

120:19 123:17

October 13:11

14:21 58:9

59:6

offer 17:12,14

offered 16:14,18

offers 16:6

office 19:20

26:22 36:6

66:20 76:3

89:4 102:2

119:3

officer 6:6,8

official 45:17

Oh 20:14 27:12

110:11 122:11

okay 7:19 13:18

16:13,22 17:3

27:20 28:14

37:11 38:20

42:13,15,16,21

44:16 47:14

48:14 50:12

51:6,12,16,21

52:4,17,20,22

53:4 54:17,22

55:2,7,15 57:5

57:15,24 58:13

58:20 60:18

64:3 68:14

69:24 75:15

79:8 83:20

85:7 90:17

91:17 100:7

101:5 109:13

112:12 115:11

116:3,21 119:1

120:4,7,15

121:6,7,19,22

122:7,11 125:1

128:19 130:18

131:17

Old 48:21,24

once 115:14

one's 80:13

one-on-one

102:22

ones 27:14

136:18

online 118:22

open 83:23

126:9,18,19

operate 21:20

operations

45:13

operator 9:8,10

76:13

opinion 37:19

90:3,3 132:18

opposed 20:6

optically 117:1

options 20:22

Oral 1:13

order 13:14 14:4

14:6,15 18:7

18:10 22:22

31:1 34:17

42:18 49:13

51:2 59:9,12

59:18,19 92:3

106:18 113:24

125:10

ordered 14:2

original 102:24

originally 104:1

originator 32:12

outside 70:22

107:24 134:19

outstanding

94:10 96:6

98:8

owe 134:16,17

owed 28:12,15

96:7,18 98:8

100:11,12,13

107:8 127:7

134:14

owes 26:8 32:1

96:3 104:15

owned 26:21

60:4,20 100:15

owner 40:1

58:17 60:12

65:7

ownership 6:4

owns 48:13,21

93:5 106:12

P

P 2:1,1

p.m 123:8

124:10,13

127:18 130:6,9

133:10 136:23

pack 100:18

page 3:4,7,9

28:5,10 43:10

43:15,17,19

44:2,7,17,19

44:19 45:20,23

51:12 83:16

87:17 88:1,3,8

118:5 129:11

130:18

pages 3:17,18

120:17 125:21

129:6

paid 24:20 26:2

28:18,23 29:2

32:4,4 42:17

56:19 67:4

89:6 92:22

96:10,10,12,13

96:16 102:1,5

102:6 105:1,5

106:8 107:3,5

107:7,8 131:1

131:7 132:5

pandering 40:23

papers 98:15

Par 3:9 5:5,7,13

5:13,14 9:11

11:7,16,24

12:7,17,18,19

12:21,23 13:1

13:3,4 41:11

42:4 43:10,14

43:16,19,24

44:11,12,14,15

44:16,18 45:3

45:19,23 46:5

46:7 48:11

51:23 52:13

61:19,20

128:20 129:12

129:13,15,18

paragraph

51:21 52:11

54:22 55:7,9

84:3

parameters 14:5

paren 126:18,18

126:19,20

PARK 2:9

part 49:21 52:22

90:6,14 109:24

124:21 126:7

particular 28:2

28:23 29:6,20

30:1,12 36:3

37:24 90:22

91:13 94:2

98:19 119:14

131:10 132:23

133:6

particularly

97:18

partners 40:19

partnership

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 149 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 150

22:22

party 115:1

pass 78:18 81:1

pay 30:24 31:1

31:24 34:17

42:18 49:13,18

90:4 96:16

100:16 101:15

101:19,20

103:8,8,10,10

103:24 104:3

105:9,17 106:3

106:18 107:6

107:11,15

110:8 113:22

114:1 127:7,14

131:15 132:11

payback 20:22

22:20

paycheck-to-p...

126:16

paying 132:6

payment 3:15

26:17 84:9,10

84:24 85:2,12

85:15,20 86:4

86:8 87:3

88:16 91:2,23

92:4,13 93:14

94:21 101:8,13

102:19 117:8

117:19 118:3

133:19

payment's 101:2

payments 99:19

102:9 114:3

116:18 117:1

117:17 119:14

127:7

payroll 127:7

pays 26:7,9

pending 4:24

Pennsylvania

1:2,16 2:5

51:18

people 17:18

41:16 44:4

56:9 60:14

61:17 64:14

72:6,11,12

81:6,8 116:5,8

118:9

people's 106:22

percent 20:4,5

26:16 29:6

30:1,8,11,13

30:19,20,22,23

30:24 31:6,8

31:14,18,19

32:18,19 34:1

34:2,4,6,10,12

34:16 36:20,21

37:5,8,11,13

37:15 40:4,7

52:15 55:6

74:6,10,15

84:12,13,17,21

87:2 88:3,9,18

101:22 115:21

116:4 130:7,12

percentage

21:15 31:8,18

34:2 88:4,12

101:3 133:7

period 13:9 59:6

107:24 108:6

117:15 126:20

126:21

person 46:3,5

50:1 63:20

64:23 65:5

106:14

personal 19:2

45:6

personally 61:15

62:2 113:6,11

129:22

pertain 4:20

pertains 13:15

petition 90:15

Philadelphia

1:16 2:5

phone 59:8

phrase 9:1

pick 25:2 124:10

picture 112:22

pictures 24:15

piece 103:5

pin 128:20

place 1:15 2:4

55:8

placed 119:5

Plaintiffs 1:5 2:2

play 7:24

played 95:24

115:12

player 95:24

plays 115:16

please 14:10

34:24 42:14

43:8 47:15,24

48:5 49:2

50:13 61:22

63:1,17 111:18

125:17,18

129:3 130:6

131:22

pledge 34:8

pledged 34:8,9

102:3 104:1

pledges 31:22,23

32:3

plus 34:7,8 59:8

point 4:21 5:18

34:5 94:13

99:17 117:4

132:12 136:2

pointing 69:22

99:2

policies 131:15

poor 56:18

119:7

portray 42:23

position 14:8,13

positive 5:23

Possibly 57:3

postponing 80:8

potential 58:6

60:4,19 61:15

62:2 63:4 74:5

75:4 115:20

practice 116:8

practiced 80:9

precious 37:6

premise 101:17

prepare 18:15

presence 74:8

present 1:18

president 47:4

55:13 56:5,17

56:20 122:19

pretty 14:15

23:4 83:10

103:11

previous 87:23

previously 29:13

29:24 53:4

63:23 136:2

price 32:2

principal 23:3

103:6

print 84:2

116:15

printed 27:14

43:18

private 49:5

probably 28:16

32:19 34:4

51:24 53:24

66:22 67:2

75:23 84:22

100:13 107:11

108:18 109:9

119:10

problem 113:23

116:17

problems 11:20

126:24 127:1

proceed 5:2

proceeded 88:24

proceedings

137:4

procure 18:8

41:15 76:12

procured 34:18

produce 43:20

95:4 108:12

110:9

produced 27:16

27:18 90:12,13

90:16 95:2

product 16:23

17:17 30:23

products 10:12

16:6,7,9,11,13

16:16,18,23

17:11,14,18

115:9,13,17

professional

7:24 45:6

profit 22:1,2

23:3 25:5

33:24 103:5

profits 22:2

promote 38:11

proof 131:4

proper 2:2 3:5

4:13 6:17 8:12

8:18 9:21,23

10:6,18 11:22

12:16 13:13,18

13:24 14:3,10

14:18,23,24

15:5,15 16:2

16:12 17:10

19:24 20:13

21:7 22:6 23:5

23:16,24 24:9

25:13,18,21

26:12,14,24

27:6,10,14,19

27:21,23 29:11

30:6 32:9

33:16 35:6

36:1,17 38:17

42:14 43:7,13

43:22 44:10

46:2,20 47:19

47:23 48:3,4

50:12,19 53:12

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 150 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 151

54:4,12 57:9

58:10,13,14,20

58:23 59:11,17

59:23 60:2,8

62:21 63:16,22

64:9 65:3,15

67:6,10,18,20

68:5,21 69:7

69:10,13,18

70:18,21 71:1

71:6,21,24

73:1,13 74:1

76:6 78:23

79:3,8,11,16

79:20 80:8,14

80:18,21,24

81:4,7,10,14

81:17,23 82:2

82:5,11,18

84:7 86:2

87:15,21 88:22

89:19 90:8,18

91:16,21 92:9

95:3,7,9,15,17

96:14 97:15

98:4,18,24

99:3 100:9

102:15 104:8

105:7,14 108:4

108:14 109:2,6

109:14 110:12

110:23 111:12

111:16,21

112:3,6,13

113:9 114:13

114:15,23

116:2 117:20

119:21 124:20

125:6,18 126:1

129:2,9 131:21

132:3,10,16

136:6,18

Properj@whit...

2:6

properly 62:14

62:16

proportionate

18:10 23:2

90:6

proved 34:3

provide 6:24

8:14 15:16

111:1,9 122:14

122:17 126:20

provided 7:13

7:22 15:6

103:16,16

providing 12:23

13:4 14:19

15:1,9 45:6

public 1:18

44:11 116:6,9

137:13

pull 130:10

punk 69:8,20

70:6,15,17,20

70:20 71:17

72:2

purchase 21:9

23:19 26:6,16

32:2 34:14

35:1,2 40:12

41:9,13 48:22

purchased 19:11

21:4 26:21

29:17 34:19

36:2,12,13

50:9 56:12

89:2 100:15

purchases 23:17

25:15

purchasing 24:2

34:10,12

purported 21:9

90:7

purposes 86:18

pursuant 1:14

put 7:16,17

19:17 21:21

22:4,4 43:2,3

44:4,8 45:13

54:2 67:24

72:23 93:2

123:21 126:16

131:19 135:9

135:12

puts 55:3

putting 41:19

75:18,22 135:8

Q

question 6:16,23

8:17 10:17

11:20,21 12:4

14:23 15:14

16:3 25:6,11

26:11,13,15

28:9 29:4

32:10 38:7

42:12 43:24

45:8,23 46:10

46:12 48:1

49:23 50:2

57:12 58:8,11

58:18 61:23

62:12,17,18

63:1,17 64:15

65:1,2,22 66:5

66:7,11 67:7

67:11,19 68:8

68:11 69:4,5,9

74:19 78:8,10

78:14,15 79:23

82:21 86:20

91:18 95:8

97:3,6,9,10,13

97:17,20,23

98:2,3 100:3,8

107:17 110:24

111:14 114:20

119:12 122:15

134:23,24

135:2 136:5

questioned

84:16,20

questioning

56:8 113:23

114:1

questions 4:5,19

4:23 5:2 8:2

23:12,15 31:10

45:11 47:10

48:10,20 49:4

52:19 58:23

67:5 69:21

71:4,20 72:19

73:9,11,16,24

78:22 79:12,19

80:15,23 93:11

93:23,23

107:20 109:7

110:17,20

111:8,8,11,13

111:17,21,23

111:24 112:5

120:21 122:24

123:15 124:18

125:4,13

136:17

quote 126:17

R

R 2:1 137:1

raise 38:18,23

58:6

raised 38:21

71:10

raising 39:15

68:23 69:1

79:1,13 80:17

ran 50:6 52:24

53:8,13

rate 74:2,5,10

74:12,18

116:17

rates 40:4,7,8

115:21

reached 80:18

reaching 80:17

read 5:17 8:3

22:18 31:3

32:13 33:10

34:23 35:12

53:11 59:18

84:3,5 99:8

127:22 131:21

131:24 135:14

reading 4:3

18:21,23 59:12

99:7 116:14

120:7 130:15

reads 68:15 97:3

126:7

ready 5:2

real 119:6

reality 71:9

realize 49:12

72:16

really 30:18,22

37:7 40:11

47:18 49:10,11

52:7 54:1,1,19

54:21 63:21

83:24 96:1

116:7

reason 4:22

62:22 63:3

68:2,3 79:18

93:2 106:20

121:22

recall 9:2 12:20

12:22 28:4

75:6 77:4 84:2

84:15,19 85:17

85:19 99:20

115:15 120:15

126:4,22

127:17 133:24

134:1,11

136:15

receipts 29:6,17

31:19

receivable 18:7

18:9,10 19:19

20:18,21,23

23:2,3 24:10

24:13 29:16

30:12,14,20

34:6 41:19

89:17 100:21

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 151 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 152

101:15,19

102:1 103:1,2

103:9 104:10

receivables 18:3

18:4,5 19:11

19:12,13,17,21

20:6 23:20,21

24:3,3,4 26:6,8

26:16,18,21,23

29:21 31:19,21

34:1,7,11,13

34:15,19,22

35:1,3 36:2,8

40:12 41:9,14

41:15,16,17,17

89:1,15,15

100:15 102:2,5

102:8,8 104:4

104:11,14,19

119:6 127:2,4

131:19 133:6,7

receive 76:8,10

76:11 83:22

received 24:4

33:1 84:1

104:20 131:9

132:23

receiving 84:15

126:4

recognize 51:12

95:10

recollection 7:21

19:1 50:20

record 27:17

68:15 69:12,19

70:1 71:7,23

72:1,20 73:18

73:21 99:2

132:1

records 70:3

recourse 31:20

31:20

Recruiting 9:13

11:12,15,23

12:6 15:24

39:6 47:11

50:7 93:21

123:24 128:8

128:21 132:19

recuse 43:4

49:14 65:23

72:18 109:23

110:3,4

recused 106:4

refer 128:22

references 71:17

referred 87:18

87:19

referring 13:14

75:14,16,23

reflect 69:19

71:7 96:21

reflected 101:22

refusal 136:16

refused 136:18

refusing 111:1

111:17 135:2

regarding 92:24

94:6

relationship

12:14 19:15

25:14 49:5,8

76:24 77:6

119:2

relevant 7:18,19

13:9 52:7 59:5

remember 7:15

9:8 10:21 11:6

11:8 39:18,20

39:23 40:2,5

57:23 61:11,16

61:18 66:10

74:7,11 76:22

77:7 84:23

85:6 86:1,10

94:3 99:13

100:14 107:2,9

117:5 120:11

123:4,6 124:2

134:9

removed 55:12

56:4

rep 39:5

repay 82:20

Repeat 11:21

repeated 71:17

repeatedly 53:6

rephrase 100:7

replace 54:24

reporter 1:17

21:24 35:22

47:15,21 63:15

63:18 69:11,15

69:19 75:19

79:6 99:24

131:24 137:18

Reporter-Not...

137:13

represent 37:3

52:9 58:16

60:10 62:22

63:4 73:17

93:14,20

101:11 128:8

representation

27:17 29:10

52:5 91:8,16

91:18

representatives

113:11

represented

44:11,17 51:17

60:3,18 61:14

62:1 65:5,16

74:4,9 75:3

99:18 115:20

116:4

representing

43:18 64:4

75:12 79:24

91:15 118:9

represents 44:14

51:21 52:11

115:3

reproduction

137:16

request 4:24

requested 43:23

69:16 126:24

132:1

requests 108:10

126:17

resent 83:14

reserve 13:20

136:14

reserved 4:5

reserves 114:9

Resources 9:13

11:13,15,24

12:6 16:1 39:6

47:11 50:7

93:21 123:24

128:9,21

132:20

respect 17:3

56:23 58:15

68:16,22 85:7

94:9 110:18

114:9

respectful 71:9

118:17

respond 116:20

130:19

responding

127:17

responds 130:9

130:20 133:9

response 67:20

71:11 116:16

responsible 46:6

46:14 50:1

128:18

responsibly

119:6

responsive

108:12

retain 75:17

retained 75:16

75:21 76:4,7

76:10

retainer 61:24

retention 75:16

return 107:7,10

revenue 37:12

37:14 130:9,10

130:23

revenues 21:15

review 116:20

126:8

reviewing

118:21

ridiculous 8:11

42:23 48:20

72:14 82:21

83:5

right 5:9 7:18

13:20 21:16

24:12,21,23

25:1,7,16 26:8

27:7,15 30:9

31:6,20 32:1

34:1 40:10

41:10,20 44:8

45:12 47:17

61:2,10 62:8

63:10 65:10

76:5 77:14

81:20 88:11,14

89:14 93:24

97:3,14 100:3

100:14,18

101:3 102:7

107:5,6,11

108:23 110:1

116:24 117:1

117:11 118:1

135:19 136:15

risk 104:9

RMR 41:14

road 24:16

robbery 124:22

role 8:13 10:1

45:16,19,22

46:24 47:1

99:21 100:1,6

112:20,24

113:6,10

room 58:5,16

70:13,16,22

root 67:2

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 152 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 153

ROTHSCHILD

2:9

run 45:5 50:4

53:14 122:12

running 54:6,18

55:16 123:2

S

S 2:1 3:6

sale 41:9

sales 9:10 11:10

11:11,12 39:5

salon 48:17,17

48:21,22 55:2

sanctions 13:21

58:21

Santa 50:23

sarcastic 71:15

saw 130:8

135:19

saying 23:10

34:13 35:12,19

45:18 55:17

61:19 71:8

89:8 103:15

108:6 111:20

117:21

says 22:10 37:15

40:10 41:10

45:3 52:8,15

52:21,23 53:3

53:11,16 55:6

55:20,22 56:10

101:4 120:9,10

126:11 127:21

scammed

106:14

scope 9:14 10:15

59:9,19,20

84:23 107:24

133:4

screaming 70:1

71:8

screwed 121:7,9

sealing 4:3

second 35:22

63:15 85:8

99:24 126:10

see 7:17 28:7,10

28:11 33:12

36:6 44:24

45:3 52:7

83:23 88:5

91:9,10 92:19

98:16,17,19,22

116:24 117:4

120:6 126:13

134:8

seek 13:20

seeking 108:5

seen 27:24 43:14

44:1 51:8 58:3

115:7

self-discovery

108:5

sell 41:16 100:18

seller's 31:20,20

semi 126:20

send 12:12

109:23 116:19

121:11 128:1

sender 120:9

sending 117:5

120:11

sense 103:19,21

sent 66:23

121:20 126:8

126:12

separate 7:20

seriously 121:8

served 108:10

services 16:6,7,9

16:11,13,16,18

16:23 17:11,14

45:7

set 68:13 109:9

sets 28:5

shame 106:18

Shane 2:3 61:12

110:3

shape 11:4

share 19:18

20:20 22:2,20

90:5 102:6

103:5

Shauna 1:17

137:12

sheet 89:6

Sheraton 57:2

short 46:22

126:9,17

show 24:17

51:11 83:15

90:19

showing 37:9

90:2

shown 44:17

SIC 77:14,15,16

77:17,21,21,23

78:3,4,17,23

79:21 80:1,5

side 50:4 52:24

53:8,13,14

54:6,9,10,14

54:18,20

sign 126:13,14

signature 51:13

51:15

signed 118:12

signing 4:3

similar 10:7,13

10:14 16:8

21:19 53:19,22

107:5,12

simple 23:4

single 20:23

sit 21:24,24

41:22 57:16

116:10

sitting 83:4,13

86:3 102:7

123:18

situation 19:23

126:16

six 108:18 126:9

size 44:24

slight 116:11

slow 35:24

small 15:10 84:3

84:5 116:15

smart 68:14

132:21

smiling 79:4

smirking 79:3

sold 26:22 41:16

41:17 89:1,17

solicit 57:17

solicited 93:1

Solutions 1:6

4:18 5:4,12

51:22 52:12

53:8

somebody 72:7

72:12 125:14

somebody's 8:10

soon 110:21

sophisticated

93:3 105:4,5

106:14

sorry 18:22

source 12:11

98:5

sourced 15:24

17:3 77:2

sourcing 12:19

12:21 15:21

South 50:23

Southern 50:22

speak 7:10,11

16:15 17:1

29:22 58:5

123:9

speaking 58:1

103:19 112:3

133:14

specialize 8:5

specializing 8:5

specific 18:3,5,6

19:11,11,18

20:4,6,17,21

21:1,8,22 22:8

25:15 26:17,21

27:1 28:20

29:16 31:8,11

31:14,21 32:15

36:8 39:7 85:6

85:7 89:15,16

117:15 131:8

specifically

31:11 40:10

52:4 100:20

specified 31:6

31:18 34:2

36:20 37:8

88:4,9

spend 21:23

22:1

spending 41:20

split 100:19

spoken 80:12,13

80:14

spreadsheet

95:11,13

stamped 27:13

stamps 95:6

stands 72:7

staring 79:13

start 7:7,13 8:4

12:19 62:3

63:7,9 64:1,5

65:19 73:14

101:2,17

started 9:14,24

11:9,16 15:21

39:14 41:3,4

52:2 55:2

state 5:22

statement 52:14

55:13 61:1,6,8

71:12 73:18,19

statements 3:14

33:1 71:7

87:11 90:10

104:22 118:21

134:22 135:5,9

135:20,23

136:8,11

states 1:1 20:3

37:21 40:16

44:24 50:22

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 153 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 154

53:7 54:22

55:7,9 88:3

101:1

stating 66:16

stay 41:6 51:4

steal 20:19

88:24 100:16

127:11

stenographic

137:6

stock 110:5

stole 89:2,4

100:19,20

stop 40:22 47:17

67:4 68:7 71:4

79:12 81:16

84:14 112:4

135:18

stopped 71:5

94:11

straight 124:21

131:2

Street 1:15 2:5

strike 6:10 9:21

23:18 46:24

75:7 84:24

86:23 92:10

94:15 100:22

structure 15:20

structured

126:9

study 78:18,19

117:9,10,13

stuff 70:4 90:3

stupid 83:13

submitted 51:9

subsequent

55:11,23 56:1

suggest 40:22,22

suit 43:1

supervised

81:19

supervision

137:18

supposed 18:9

20:20 111:7

sure 8:20 10:15

16:6,10 21:22

24:16 27:7

28:13 33:3

37:6 41:1

73:21,21 81:15

81:16 83:10,11

87:16 90:16

93:7 102:23

104:11 107:16

110:21 129:14

129:21

sworn 3:3 4:9

T

T 3:6 137:1,1

table 69:21 70:2

70:10 79:14

80:17,19 81:13

take 4:21 14:8

14:13 18:6

19:16 21:15

22:16 23:1

26:16 29:6

40:11 42:13,16

43:5,5 44:20

44:23 46:12

49:10,20 61:8

61:12 66:12

72:8,9,10,10

82:8,11 94:15

100:19 106:8

106:10 109:22

125:11 127:12

130:19 131:7

131:13

taken 1:14 69:16

90:6 91:9

137:6

talk 7:23,24 8:8

16:21 30:17

49:8 61:17

76:2 101:18

talked 68:18

talking 9:11

18:24 24:11

35:23 45:21

62:14 64:14

78:2 98:23

107:24 136:2

talks 100:20

teach 37:4 75:14

team 123:8,10

123:12,22

124:4

technically

41:18

Telephone 2:6

2:10

tell 39:21,24

40:3 42:9,9,10

42:18 45:8

49:6,6 65:1,1

67:23,24,24

71:5 96:2

106:1 107:22

110:15 111:3

111:18 121:3,6

121:23 123:7

124:1,3,6,9,22

125:6

telling 53:22

80:3 106:7

110:7,14

tendency 97:17

term 126:17

terms 28:6 84:12

132:6

testified 4:9

29:12,24 53:5

53:6 55:15

63:12 66:24

135:7,9,19,24

testify 8:10 30:5

30:7 46:8

63:23 93:8,22

98:16 108:19

133:15

testifying 35:21

136:9

testimony 9:14

104:14 136:7

text 3:16 119:13

119:18 120:4,8

120:10,11,22

121:1,6,11,20

124:9,13

Thank 116:16

Thanks 13:24

theory 103:23

103:24

thing 40:11

92:24 101:18

105:3 107:12

things 6:22

10:16 24:15

46:8 77:20

78:1 86:21

110:15 118:17

think 10:11

12:13 22:21,24

34:4 43:3

49:16 52:6

57:15 72:2

78:20 83:2,9

98:22 99:4

102:5 103:11

105:8,19 106:3

112:1,1 119:7

121:7 125:1,2

125:2,14,19

126:11 127:21

130:1

third 67:16 81:1

114:24

thoroughly

97:11

thought 29:12

63:12 95:15

123:1 135:7

thoughts 8:9,10

9:16

thousand 52:15

thousands 41:22

41:23 61:17

threat 79:9 81:2

threaten 81:24

82:19 83:7

threatened 72:1

72:1 82:6

threatening 68:6

71:16

threats 81:3

three 67:8 118:6

126:15

THURSDAY

1:10

time 4:6,21,24

8:2,24 11:9,14

11:23 13:9

19:14 21:21

28:18 33:3

37:6 38:7 41:8

41:20 47:16

48:20 55:2,10

59:2,5,7 60:19

61:12,21 63:19

66:9 67:16

68:18 71:11

73:23 76:2

79:7 81:1 85:3

86:5 94:10,13

99:17 102:4

103:6 107:23

108:6 117:15

118:18 124:2

126:8

time/money

21:23

times 66:6,20

67:9 102:2

108:18,18

119:4 126:15

tip 47:19

titled 28:6

today 4:19 13:4

13:8,12 14:14

14:16 19:18

27:24 44:7

53:23 57:16

82:10 86:3

90:13 123:5

today's 14:11

18:15

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 154 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 155

told 32:15 34:23

40:19 59:2

60:11 77:23

98:21 108:17

108:20 109:4

112:7 122:7

133:18 135:23

tone 68:13,13,16

top 41:24 104:24

130:18

topic 134:13

total 116:19

tranche 117:10

tranched 117:15

tranches 117:22

transaction

15:22,23 17:21

20:19 21:23

28:3 30:2 36:3

37:24 38:3

95:12,16 128:9

128:12

transactions

10:2 11:5

15:20 17:5

18:12,19 19:3

19:7 21:9 36:8

56:23 114:10

transcript 47:16

135:16 137:8

137:15

transferred

19:12

treat 68:16

118:13

treated 68:22

80:10,10 89:9

89:21

treating 69:3

trial 4:6

tried 57:17 64:4

123:16

true 40:17 43:4

51:19 52:13,16

52:21,23 53:2

53:3,9,16,17

54:17,19,24

55:4,6,13

56:10,11 62:7

73:18 82:1,4

91:19 123:17

trust 119:5

121:16

trusted 121:9,23

truth 72:13

try 18:3 20:12

20:16 35:24

41:6 47:24

49:2 54:2,2

66:15 100:2

134:19

trying 23:13

41:6 47:18

58:6 99:14,21

118:17 120:18

128:20,23

tune 19:19

turn 90:19

two 49:8,12

57:10 66:13

116:18 136:12

type 16:23 76:7

118:22 120:9

types 17:18

typical 89:16

U

Uh-huh 25:12

28:8 76:16

85:10 91:12

117:23 134:16

understand 7:11

10:4,5,10

11:19 12:9

14:3 19:5 20:9

20:11,14 23:6

23:8,8,11 24:7

29:1 35:13

54:14 79:11

84:8 87:5

89:20 98:24

99:4,4 101:7

106:10 113:19

113:21 116:7

understanding

5:24 29:13,18

36:11,19 77:11

89:8 103:15

132:22

undertaking

134:18

underwrite 33:9

37:21

underwriter

28:21 36:9

37:15,18 38:2

119:24

underwrites

37:20

underwriting

31:9,10 86:22

92:5 93:20,22

119:23 120:1

underwrote

37:23 90:1

Unfortunately

128:12

United 1:1 37:20

40:16 50:21

unsolicited

19:20 26:22

89:18 93:1

untimely 108:11

untrue 120:18

upheld 40:16

use 27:1 44:21

46:1 103:23,24

127:9,10

uses 116:11

V

Vagnozzi 38:5,6

38:8,9,14,16

38:18,21,23

39:2,7,9,11,14

39:17,21,24

40:3 57:2,6,17

115:3,8,12,16

115:19

Valley 57:2

venture 64:20

verify 121:19

123:14

versus 4:17

video 57:24 58:3

videos 58:4

115:7,12,15

violating 51:4

virtually 126:14

voice 68:24 69:2

71:10 79:1,13

volunteering

108:2

vs 1:5

W

waited 116:22

waived 4:4

want 6:22 7:24

8:10 13:23

14:9,13 20:14

23:1 27:7

36:11 44:5

52:4 57:14

58:22 59:1,2

59:22 61:24

67:22 69:18

78:21 81:15,16

87:16 103:23

109:6 131:1

135:1 136:14

wanted 13:10

wants 53:18,18

warning 116:18

wasn't 67:19

96:4 102:16

127:8,10

waste 68:18

wasting 41:8

48:20 61:21

66:9 73:23

watch 42:10

58:4 67:23

68:10

way 7:21 11:4

32:24 41:6,16

41:21 42:2

47:22 61:9

66:24 69:22

70:14 71:15

72:3,14 80:10

82:2 100:14

103:7 117:2

119:11 126:9

128:19 133:4

133:17

ways 76:1

we'll 24:15

47:19 59:24

71:4 103:23

104:11 108:12

we're 4:16 14:2

14:15 18:24

19:22,23 34:12

34:15,15 45:21

49:21 59:14

61:21 70:23

71:2,3,22

73:12,23 79:17

80:3 82:10

100:17,18

106:16 111:5

118:5 125:19

136:15

we've 97:18

weak 72:12

website 45:14,17

55:3 115:4,8

websites 19:12

115:10

week 7:16

104:19 117:2

welcome 59:15

went 8:1 9:9

19:12 42:6,8

42:19 47:13

57:3 84:11

weren't 70:13

70:15 119:22

White 1:14 2:4

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 155 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 156

16:8 42:21

44:7 49:18

82:22

wife 7:9,10,11

7:13,22 48:6

48:12,18 49:22

49:24 50:8,21

51:9,17,21

52:8,15,21,23

53:3,7,16,22

53:24 54:13,22

55:16,17 56:10

56:11,20,22

122:8,9,12,14

122:17,19

wife's 51:13

WILLIAM 2:3

Williams 1:14

2:4 16:8 42:21

44:7 49:19

82:23

win 41:18

wired 42:20

66:1 72:16

108:21 113:14

withholding

108:16

witness 3:2,3

6:15 8:8,16

10:5,11 11:21

12:10 15:4,14

16:5 17:9 19:6

20:11 21:19

23:13,23 24:8

25:12 26:20

30:5 32:7

35:20 36:15

38:14 42:15

43:24 44:1

45:24 46:19

54:8 57:8 60:7

64:8,24 65:10

65:14 66:19

67:14,17 68:4

68:9,12 69:1

70:5,8,9,12,19

71:18 72:5,23

73:4,20 75:20

79:5 80:11,16

80:20 81:5,8

81:12,20 82:1

82:4,6 86:1

87:6 88:21

89:13,24 91:20

96:9 97:7,10

97:14 98:1,11

99:5 100:5

102:14 104:6

104:18 105:12

108:2,24 109:8

109:12 110:11

111:7 112:11

114:18,22

116:1 117:13

124:19 125:9

132:9,14

witnesses 73:13

won 41:24

wondering

47:12,14

word 6:21 9:22

33:12 114:19

116:9,11,12

words 53:11

67:24 101:19

102:1 135:8,9

135:12

work 9:12 10:15

11:24 12:1,2,4

17:21 21:20

32:22 41:15

44:15 47:7,10

47:10,22 50:6

56:16 73:20

74:16 116:21

122:9 123:24

127:20 128:21

130:3 133:1

worked 9:12

55:10 129:15

working 45:4

132:19

works 32:20

34:3 59:4 76:1

101:9 107:13

world 133:21

worse 47:22

wouldn't 7:16

18:14,21 20:14

28:20 39:1,4,6

44:14 55:1

62:7 70:12,21

85:13 89:24

93:17 94:11

99:9 100:22

102:7 104:6

107:4,17 110:8

115:6 119:10

120:13,16

134:20

writes 116:16

130:5

writing 32:20

120:14

wrong 41:8

48:18 82:7

X

X 3:1,6

Y

Yankees 7:23

8:1

yeah 5:10 18:24

27:12 47:12

48:19 51:20

61:4 74:20

91:20 96:15

104:13 109:6

131:13 133:22

134:1

year 11:10 53:2

57:2

year-and-a-half

103:10

years 10:14

19:14 57:11

63:20 72:4

80:9 87:16

103:6 132:19

yelling 70:7,9

71:8 72:21

73:10

Yellowstone

11:7

yesterday 14:6

York 2:10,10

40:19

Yup 5:3 45:2

117:6

Z

0

1

1 36:9 74:5,10

74:14 83:16

126:19

1:27 123:8

1:29 124:10

1:33 124:13

1:54 136:23

10 20:4,5 26:16

29:6 30:1,8,11

30:13,19,20,22

30:23,24 31:6

31:8,14,15,18

31:19 32:18,19

34:1,2,4,6,10

34:12,16 36:20

36:21 37:4,5,8

37:11,13,15

84:12,17,21

87:2 88:3,9,18

101:22 121:3,7

123:7 124:9

125:19 130:7

130:12

10:18 130:6

10:21 130:9

101 2:9

10178 2:10

10th 120:8,12

121:20 124:14

11 129:2

11:17 1:17

11:32 133:10

119 3:16

12,000 92:19

12,337 91:14,24

92:16,19

12/19 84:10

12/19/18 3:12

87:9

125 3:17

129 3:18

14,525 93:15

14th 92:18,20

150,000 44:24

15th 93:13 94:8

16 101:12 102:2

102:21

16,500 84:11

85:4

1650 1:15 2:5

16th 101:22

17 94:14

173,000 32:1

17TH 2:9

18 94:14

1800 1:15 2:4

18th 91:10

19 87:19

19-3285 1:4

19,000 101:14

19,995 84:11

101:12,21

19,995-dollar

102:18

1907 31:7

190739 36:20

19103 1:16 2:5

19th 90:9 91:6

2

2 3:17 28:5,10

36:9 43:8,14

44:23 74:6,10

74:15 88:1

125:21 126:20

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 156 of

 157
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 157

2,000 32:16

84:24

2/24 84:10

2/27/19 3:13

87:10

20 32:16 80:9

90:21 91:3

92:13

20-plus 72:3

2000-- 86:23

2012 7:14 8:22

9:4,18,24 10:7

10:20,21,22,24

11:6 12:21,24

45:20 46:6,14

46:21 49:22

50:1,5,10

51:23 52:13

54:5,24 56:2

2018 13:10,11

46:24 87:19

88:2 90:9

94:14,17 95:20

96:18

2019 14:20,21

15:2 16:14,19

38:21,24 47:1

47:5,8 48:7,12

58:9,15 59:6

74:2 75:1

83:21 85:3,8

85:16,18,20,22

86:4,9,13,16

86:19,24 87:20

90:21 91:3

92:13,14,18,18

93:13 94:9

101:12 102:21

116:15 117:7

121:3,7 123:7

124:10,14

126:5 127:18

130:5 133:10

134:2

2020 1:10 86:19

87:1,20 137:7

21 92:22

212-878-7945

2:10

215.864.7000

2:6

22 63:20 103:1

22nd 91:10

230 40:15

23rd 91:6,8

24 92:13,18

24th 91:13

25 92:21

27 3:8 32:1

2946-04 28:10

28:12,15,24

29:3,20 31:22

35:2 36:12,13

2nd 126:5

127:18 130:5

133:9 134:1

3

3 19:19 41:19

51:12 92:23

96:3 106:16

3:40 127:18

30 61:13 78:12

78:12

30(b)(6) 13:15

14:7 59:12

30,000 42:1,2

49:10 52:10

56:18 65:24

66:12

35 40:4,7 115:21

116:4

350,000 127:20

128:4

3500 84:11 85:3

90:21 91:5,9

91:10,10,23

3500-dollar 91:2

3rd 83:21

116:15

4

4 3:5,18 99:7

116:14 129:5

4,583 88:9

40 32:17

400,000 32:19

32:24 33:5

96:19

43 3:9

44 103:1

45-day 103:10

4583 101:2,13

4583.00 84:11

472,356.60

94:18 95:19

48 36:7 85:5

5

5 1:10 51:22

52:11 88:1,17

90:9 91:2,6

137:7

5,000 44:24

5/2/19 3:17,18

125:21 129:5

5/3/19 3:11

5/31 27:6,8

5/31/18 3:8 27:3

27:11

5/31/19 82:15

50 3:10 66:6,20

50,000 42:19

43:1 46:13

500,000 62:3

63:5

6

6 54:23 88:7,8

88:17 101:1

600,000 33:3

66 103:1

7

7 55:9 90:11

8

82 3:11

87 3:12,13,14

88 103:1

8th 94:16 95:20

9

9:52 83:21

90 103:10

94 3:15

Case 9:20-cv-81205-RAR Document 20-1 Entered on FLSD Docket 07/27/2020 Page 157 of

 157