Joseph LaForte

WWW.KLWREPORTERS.COM

Page 1

 IN THE UNITED STATES DISTRICT COURT

 EASTERN DISTRICT OF PENNSYLVANIA

 - - -

 FLEETWOOD SERVICES, :CIVIL ACTION

 LLC, ROBERT L. :

 FLEETWOOD, and :

 PAMELA A. FLEETWOOD, :

 Individually and on :

 behalf of all others :NO. 18-CV-00268

 similarly situated, :(JS)

 Plaintiffs :

 :

 vs. :

 :

 COMPLETE BUSINESS :

 SOLUTIONS GROUP, :

 INC. D/B/A Par :

 Funding; JOHN AND :

 JANE DOES, :

 Defendant. :

 - - -

 Oral Deposition of JOSEPH

LaFORTE, taken pursuant to notice, held at

WHITE AND WILLIAMS, LLP, 1800 One Liberty

Place, 1650 Market Street, Philadelphia,

Pennsylvania 19102, on December 5, 2019,

beginning at 10:00 a.m., before Kathleen

Jastrzembski, Court Reporter-Notary Public,

there being present.

 - - -

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 1 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 2

1 APPEARANCES:

2

3 WHITE AND WILLIAMS, LLP

 BY: JUSTIN PROPER, ESQUIRE

4 SHANE HESKIN, ESQUIRE

 1800 One Liberty Place

5 1650 Market Street

 Philadelphia, PA 19103

6 Phone: 215-864-7142

 Representing the Defendant

7

8 FOX ROTHSCHILD, LLP

 BY: BRETT BERMAN, ESQUIRE

9 2000 Market Street

 Floor 20th Floor

10 Phone: 215-299-2842

 Bberman@foxrothschild.com

11 Representing the Defendant

12

13

14

15

16

17

18

19

20

21

22

23

24

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 2 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 3

1 I N D E X

 - - -

2 Witness

3 Joseph LaForte

4 EXAMINATION BY: PAGE

5 Mr. Proper 5

6

 E X H I B I T S

7 - - -

8 NUMBER DESCRIPTION PAGE

9 P-1 Foreign Policy article 158

10 P-2 Factoring Agreement 159

11 P-3 Handwritten Notes 161

12 P-4 Fleetwood Services Matrix 173

13 P-5 Consolidation Calculator 173

14 P-6 Fast Advance Funding 182

15 P-7 Fleetwood Services Funding 190

 Payment History

16

17

18

19

20

21

22

23

24

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 3 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 4

1 LITIGATION SUPPORT INDEX

2 Direction to Witness Not to Answer

3 Page Line Page Line

4 15 11 127 13

5 59 3 130 10

6 59 10 186 4

7 124 6

8

 Request for Production of Documents

9

Page Line Page Line

10

 None

11

 Stipulations

12

Page Line Page Line

13

5 1

14

15

16

17

18

19

20

21

22

23

24

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 4 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 5

1 - - -

2 THE COURT REPORTER: Usual

3 stipulations?

4 ALL COUNSEL: Yes.

5 - - -

6 (It is hereby stipulated and

7 agreed by and between counsel for

8 respective parties that reading, signing,

9 sealing, certification and filing are

10 waived and that all objections, except as

11 to the form of questions, be reserved until

12 the time of trial.)

13 - - -

14 JOSEPH LaFORTE, after having been

15 first duly sworn, was examined and

16 testified as follows:

17 - - -

18 EXAMINATION

19 - - -

20 BY MR. PROPER:

21 Q. Good morning, Mr. LaForte, how

22 are you?

23 A. Pretty good.

24 Q. Good. My name is Justin Proper.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 5 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 6

1 I'm an attorney from the Law Firm of White

2 and Williams, you're currently at our

3 offices. I represent the plaintiffs in a

4 lawsuit that's been commenced against CBSG,

5 Complete Business Solutions Group,

6 Incorporated doing business as PAR Funding,

7 and John and Jane Does, investors of CBSG.

8 Are you aware of this lawsuit?

9 A. Yeah.

10 Q. Where are you currently employed?

11 A. I work for a consulting company

12 called Recruiting and Marketing Resources.

13 Q. How long have been you worked at

14 Recruiting and Marketing Resources?

15 A. Seven years now.

16 Q. Over th past seven years, have

17 you done any consulting work for companies

18 other than Recruiting and Marketing

19 Resources?

20 A. No.

21 Q. Have you ever been employed by a

22 company by the name of Complete Business

23 Solutions Group?

24 A. No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 6 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 7

1 Q. Have you ever been employed by a

2 company that does business by the name of

3 PAR Funding?

4 A. No.

5 Q. Have you ever done any consulting

6 work for either Complete Business Solution

7 Group or PAR Funding?

8 A. I mean, I don't know how to

9 answer that question.

10 MR. BERMAN: Say you don't

11 understand.

12 THE WITNESS: I don't understand

13 the question.

14 BY MR. PROPER:

15 Q. Well, you do consulting work for

16 a company by the name of Recruiting and

17 Marketing --

18 A. The question is tricky because

19 Recruiting and Marketing Resources is a

20 sale on, and it could be contrude that CBSG

21 and PAR Funding work together, so I don't

22 want to answer the question wrong. So I

23 don't understand the question.

24 Q. That's fair. So why don't you

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 7 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 8

1 tell me in more detail what Recruiting and

2 Marketing Resources does?

3 A. Consulting for different types of

4 products and services that small businesses

5 might be able to take advantage of in the

6 market.

7 Q. How does that company, Recruiting

8 and Marketing Resources, inner play, if at

9 all by CBSG?

10 A. Well, it inner plays with a lot

11 of different lenders in the industry, from

12 Pay Pal to On Deck Capital to Amazon to PAR

13 Funding, to many of the companies that you

14 guys know of in the industry. There's no

15 specific relationship in the sense that

16 it's one of our lenders that we like to use

17 to fund deals.

18 Q. So walk me through what you do

19 for Recruiting and Marketing Resources?

20 A. I manage a sales office that

21 takes in clients, breaks down information

22 to make sure that it's properly formatted

23 before it goes to a lender. And after it

24 goes to a lender, I make sure that the deal

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 8 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 9

1 is prudently done, and I see if the client

2 would like to purchase the deal.

3 Q. So you are looking for

4 prospective borrowers; is that fair?

5 A. No, I don't look for the

6 prospective borrowers.

7 Q. Who -- is Recruiting and

8 Marketing Resources a broker for lenders?

9 A. No.

10 Q. So what specific services does

11 Recruiting and Marketing Resources do,

12 let's say for CBSG?

13 A. I'm a broker for different ISO's.

14 So, independent sales operators send us

15 business and we place the business. It's

16 financial technologies.

17 Q. So, do you work for an ISO

18 company?

19 A. No.

20 Q. Are you an independent sales rep?

21 A. No.

22 Q. So why don't you explain for the

23 record what an ISO is?

24 A. There's a lot of different ways

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 9 of 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 10

1 to become an ISO. You can be a syndicate,

2 you can be a broker, there's a lot of

3 different ways you can explain an ISO. I'm

4 not an ISO, so I couldn't explain it.

5 Q. What is your understanding as to

6 what an ISO does as it relates to your

7 consulting work with Recruiting and

8 Marketing Resources?

9 A. Sources deals for different

10 merchants throughout the country.

11 Q. Sources deals in what respect?

12 What's that mean, sources deals?

13 A. Same way you source deals here,

14 right? They source deals, you call

15 clients, you can co-call, you can use

16 different marketing techniques to get

17 business, so independent sales operators

18 source business in order to get funding.

19 Q. Okay, so an ISO may source

20 business and bring that to Recruiting and

21 Marketing Resources, right?

22 A. Correct.

23 Q. So by sourcing business, is that

24 anything more than finding someone that

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 10 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 11

1 wants money?

2 A. Yeah, it could be more than that,

3 yeah. Could be some advice. It could be

4 anything. It's consulting.

5 Q. Is one of the things an ISO will

6 do for Recruiting and Marketing Resources

7 is to bring someone to your business that

8 wants funding?

9 A. Potentially.

10 Q. Okay. What else will an ISO do?

11 A. I can't speak for what they do.

12 Q. Do you work with ISOs?

13 A. Sure.

14 Q. So what other things do ISOs do,

15 specifically with respect to your

16 consulting work with Recruiting and

17 Marketing Resources?

18 A. They bring us business so we can

19 find funding for them.

20 Q. Okay. Do all of the people that

21 are brought to you by ISOs look for some

22 form of funding, or are there other needs

23 that business have that you --

24 A. There's a lot of different need.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 11 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 12

1 MR. BERMAN: Objection. You can

2 answer. You can answer.

3 BY MR. PROPER:

4 Q. Other than funding, what other

5 services does Recruiting and Marketing

6 Services provide for businesses?

7 A. Consulting.

8 Q. What type?

9 A. General consulting. Advice on

10 merchant terminals. Could be credit.

11 Could be anything. Very broad.

12 Q. One of the services that

13 Recruiting and Marketing Services performs

14 though is locating lenders for your

15 clients?

16 A. Yes.

17 Q. So I want to sort of focus on

18 that for a moment.

19 A. Okay.

20 Q. Do you have written agreements,

21 and when I say you, I mean your company.

22 Do you have written agreements with any

23 specific lenders?

24 A. Yes.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 12 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 13

1 Q. When I say your company, I just

2 want to be clear for the record, do you

3 have an ownership interest in --

4 A. No.

5 Q. If you could just allow me to

6 finish my question just so the court

7 reporter can take it down and we have a

8 clean record even though you may anticipate

9 what I'm going to ask.

10 A. Okay.

11 MR. BERMAN: And the same for him

12 because you're no cutting him off at his

13 answers too, so that goes both ways.

14 MR. PROPER: It does. I didn't

15 realize I had done that, but I'll be

16 cognizant.

17 MR. BERMAN: A few times.

18 MR. PROPER: Thank you for

19 pointing that out, Brett. I appreciate

20 that.

21 MR. BERMAN: No problem.

22 BY MR. PROPER:

23 Q. So with respect to your

24 relationship, or employment, or consulting

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 13 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 14

1 work with Recruiting and Marketing

2 Resources, you are an independent paid

3 consult, correct?

4 A. Yes.

5 Q. You are not employed by that

6 company?

7 MR. BERMAN: Objection. You can

8 answer if you understand the question.

9 THE WITNESS: I don't understand

10 the question.

11 MR. PROPER: Okay.

12 BY MR. PROPER:

13 Q. Does Recruiting and Marketing

14 Resources take out taxes on your behalf

15 when they pay you?

16 A. I don't know.

17 Q. You don't know whether or not

18 they take out taxes, or whether you have to

19 pay taxes quarterly?

20 A. I don't know how they report, I'm

21 not too familiar with the accounting.

22 Q. Well, when you file your

23 tax return, do you --

24 A. My accountants do everything for

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 14 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 15

1 me, I don't know how to do it.

2 Q. Do you make estimated payments?

3 MR. BERMAN: Objection. How is

4 this relevant to class certification?

5 MR. PROPER: I'm trying to

6 understand what his relationship is with

7 Recruiting and Marketing Services, and

8 whether or not he's a paid employee or a

9 consultant.

10 MR. BERMAN: Irrelevant to class

11 certification, you don't have to answer.

12 MR. PROPER: We'll do this all

13 day because I'm deposing this individual as

14 a fact witness. There's overlapping issues

15 between class certifications and merits.

16 There's a specific order in the case that

17 permits us to take merits discovery

18 relevant to the specific claimants at issue

19 in this lawsuit, and counsel is directing

20 his client not to answer that question. So

21 I'm not going to argue about it.

22 You've directed him not to

23 answer, done. I'll move on.

24 MR. BERMAN: No problem, and for

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 15 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 16

1 clarity of the record, you made a

2 misrepresentation in what you just stated.

3 The Court specifically said that no

4 class-wide merits discovery shall be

5 conducted until after the May 29, 2020

6 status conference, so your statement that

7 merits discovery is to be conducted now is

8 disingenuous and in violation of a court

9 order.

10 MR. PROPER: Can you read footnote

11 nine of that court order, Brett?

12 MR. HESKIN: Read the whole thing

13 into the record, please.

14 MR. PROPER: Read the footnote

15 where the judge says that it's appropriate

16 to take merits discovery relative to this

17 particular -- relative to the Fleetwoods

18 claim.

19 MR. BERMAN: I don't know what

20 footnote nine is.

21 MR. PROPER: Is there a footnote?

22 MR. BERMAN: There is a footnote.

23 MR. PROPER: Can you please read

24 the footnote for the record since you just

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 16 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 17

1 accused me of violating a court order and

2 making disingenuous statements?

3 MR. BERMAN: You did.

4 MR. PROPER: Okay, go ahead and

5 read it.

6 MR. BERMAN: While the Court is

7 not ordering the parties to conduct merit

8 discovery on plaintiff's individual claims,

9 the Court strongly encourages the parties

10 the come to an agreement regarding this

11 discovery. Discovery on plaintiffs

12 individual claims can begin at any time,

13 and there is no --

14 MR. PROPER: Wait, what did that

15 just say?

16 MR. BERMAN: I'm not under oath.

17 You asked me --

18 MR. PROPER: You just accused me

19 of a violation of a Court order, and what

20 you just read said that I'm permitted to

21 take merits discovery immediately. Did it

22 say that or did it not say that?

23 MR. BERMAN: Listen, talk to me

24 like that again, call the Judge, this is

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 17 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 18

1 harassing. Do not ever raise your voice to

2 me again. Happy to get on the phone with

3 Judge Sanchez right now to clarify it.

4 Pick up the phone, take your

5 voice down. I'm not here to be lectured or

6 yelled at. I'm not being deposed. I'm a

7 lawyer. Call the Judge.

8 MR. PROPER: I'm not here to have

9 you tell me --

10 MR. BERMAN: Take your voice

11 down.

12 MR. PROPER: You're yelling at me,

13 and don't try to create a misimpression on

14 the record. You accused me of violation a

15 Court order. You read the court order, and

16 I have not violated it. Your objection is

17 in violation.

18 MR. BERMAN: Call the Judge.

19 MR. PROPER: So why don't you

20 correct the record.

21 MR. BERMAN: Call the Judge.

22 MR. PROPER: I don't need to call

23 the Judge yet, but I'll be calling him

24 shortly.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 18 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 19

1 MR. BERMAN: Call the Judge, and

2 don't dare raise your voice to me like this

3 again, or we will call the Judge and talk

4 about the sanctions against you.

5 MR. PROPER: Do it.

6 MR. BERMAN: This is harassing.

7 MR. PROPER: Do it.

8 MR. BERMAN: You heard my

9 objection. The order says what it says.

10 You're in violation of the Court order if

11 you think there's merits discovery

12 occurring today. Call the Judge. Call the

13 Judge.

14 MR. PROPER: Is it your position

15 I'm not allowed to ask any questions

16 regarding the merits of Fleetwood's claim?

17 MR. BERMAN: Ask your questions,

18 I'll object. I am not here to answer your

19 questions. At any time, if you don't like

20 my objection, per the Court's directive,

21 pick up the phone, call the Judge.

22 MR. PROPER: Perfect.

23 MR. BERMAN: I'm not under oath

24 here. I'm not being deposed here. Stop

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 19 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 20

1 posing questions to me.

2 MR. PROPER: No, you're being an

3 obstructionist.

4 MR. BERMAN: You call the Judge

5 whenever you want.

6 MR. PROPER: I understand that.

7 I appreciate your guidance on what my

8 rights are as an attorney.

9 BY MR. PROPER:

10 Q. So, back to Recruiting and

11 Marketing Resources, does that company have

12 a written agreement with CBSG, or PAR

13 Funding?

14 A. Yes.

15 Q. Okay. Have you read that

16 agreement?

17 A. Yes.

18 Q. Has that agreement been produced

19 in this lawsuit, to your knowledge?

20 A. No. I wouldn't know.

21 Q. You wouldn't know, okay.

22 Can you generally tell me what

23 the terms and conditions are of that

24 agreement between those two companies as

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 20 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 21

1 you understand it?

2 A. No.

3 Q. Is there compensation that CBSG

4 pays to Recruiting and Marketing Services

5 when business is referred to CBSG?

6 A. Yes.

7 MR. BERMAN: Objection. You can

8 answer.

9 BY MR. PROPER:

10 Q. Can you tell me your

11 understanding of the nature of that

12 financial arrangement?

13 A. Say that again, I'm sorry.

14 Q. Can you tell me your

15 understanding of the nature of the

16 financial arrangement between CBSG and

17 Recruiting and Marketing Services?

18 A. I don't understand your question.

19 Q. How is CBSG -- strike that.

20 Under what circumstances does

21 CBSG pay Recruiting and Marketing Services

22 money?

23 A. If PAR Funding, or any other

24 lender finances another company in the form

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 21 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 22

1 of cash advance or any other product of

2 service, it would be entitled to a

3 commission.

4 Q. Okay. What is the formula for

5 the commission that CBSG would pay to

6 Recruiting and Marketing Services if a deal

7 is funded?

8 A. Various.

9 Q. Various how?

10 A. It could vary on term. It could

11 vary on rate. It could vary on time of the

12 year. It could vary on anything.

13 Q. So under the agreement, there are

14 different parameters for how CBSG pays

15 Recruiting and Marketing Services; is that

16 fair?

17 A. Could be.

18 Q. Are you guessing or do you know?

19 A. Different products require

20 different commissions.

21 Q. Got it. So what different

22 products does CBSG offer?

23 A. We went over that already. It's

24 on the top of your page right there.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 22 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 23

1 Funding, consulting and credit.

2 Q. That wasn't my question, so I

3 apologize.

4 A. That was the first question.

5 Q. That was what services Recruiting

6 and Marketing Services provides?

7 A. Right.

8 Q. I'm asking you what type of

9 financial products does CBSG offer?

10 MR. BERMAN: That wasn't your

11 question, but if that's your question, you

12 can answer.

13 THE WITNESS: That wasn't the

14 question, but okay. PAR Funding provides

15 many different services from cash advances,

16 all different factoring products,

17 consolidation products, lines of credit

18 products. They're not technically lines of

19 credit. We like to call them in-house as

20 lines of credit. They have nothing to do

21 with other loans, and that's about it.

22 Q. Does PAR Funding offer any form

23 of lending product?

24 A. No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 23 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 24

1 Q. Okay. Have you seen the

2 different forms for cash advances verus a

3 line of credit versus a different factoring

4 product that CBSG uses?

5 A. Yes.

6 MR. BERMAN: Objection.

7 BY MR. PROPER:

8 Q. Are you particular with those

9 different forms?

10 A. Sure, yeah.

11 Q. Do you know what percentage of

12 the deals that you bring to CBSG, which I'm

13 going to use interchangeably with PAR

14 Funding, result in a merchant cash advance

15 agreement?

16 A. Probably about 20 percent.

17 Q. And what percentage of the deals

18 result in some type of factoring

19 arrangement?

20 A. I consider them both

21 interchangable.

22 Q. So what does the other 80 percent

23 consist of?

24 A. People that don't qualify.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 24 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 25

1 Q. So I'm going to ask specifically

2 about deals that result in CBSG giving

3 money to individuals that you bring to

4 them.

5 A. Please.

6 Q. Okay. What percentage of funding

7 deals that you're involved with does CBSG

8 structure as a merchant cash advance?

9 A. 20 percent.

10 Q. And that means 80 percent of the

11 other deals that are funded are in some

12 other from of agreement. What form of

13 agreements --

14 MR. BERMAN: Objection.

15 THE WITNESS: There's no other

16 form of agreement. 20 percent of our

17 clients who will qualify for some type of

18 financing.

19 BY MR. PROPER:

20 Q. Okay.

21 A. The other 80 percent don't

22 qualify.

23 Q. So --

24 A. Or, let me be more specific.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 25 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 26

1 Q. Sure.

2 A. You might apply, or maybe you get

3 funding somewhere else. But the actual

4 closurey shows about 20 percent. To

5 clarify.

6 Q. I appreciate that. We're just

7 having a disconnect. So of the 20 percent

8 that qualify, if I'm understanding you

9 correctly, all of those individuals will

10 sign some form of merchant cash advance

11 agreement with CBSG?

12 A. Right.

13 Q. Got it. Is the form of the

14 agreement the same for all of the clients

15 that are approved and actually funded by

16 CBSG?

17 MR. BERMAN: Objection. You can

18 answer if you understand.

19 THE WITNESS: No, because there's

20 different products, so in our businesses,

21 people have different needs. You can't

22 have a templated product for one specific

23 client.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 26 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 27

1 Q. Okay.

2 A. So there might have a need for a

3 different product that doesn't fit the box

4 of a typical cash advance product, so we'd

5 have to tailor the documents in order to

6 facilitate the deal.

7 Q. So are the agreements tailored in

8 every specific case to the needs of a

9 particular borrower?

10 MR. BERMAN: Objection. You can

11 answer.

12 THE WITNESS: You can't -- no. So

13 we have different products and different

14 programs. You can do different documents

15 and do it different legal for each client.

16 BY MR. PROPER:

17 Q. So there is a form agreement that

18 is so sort of a template for all of the

19 deals with CBSG, right?

20 A. Correct.

21 Q. And under the form agreement, do

22 all the form agreements have some form of

23 the daily payment?

24 A. No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 27 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 28

1 Q. Do all the agreements have some

2 sort of repayment structure?

3 A. Of course.

4 Q. And what percentage of the

5 agreements are the borrowers required to

6 repay the money through daily ACH

7 withdraws?

8 A. I don't have that data.

9 Q. Okay. In your experience, do you

10 know what percentage of the deals funded by

11 CBSG require repayment through daily

12 payments?

13 A. I don't have that data.

14 Q. What other repayment models have

15 you seen? The payments will be repaid

16 under what time period?

17 MR. BERMAN: Objection. Just for

18 clarity of the record, are you talking

19 about Texas deals?

20 MR. PROPER: I'm talking

21 generally, and we're going to get into

22 Texas.

23 MR. BERMAN: Why? We're in a

24 class action certification discovery about

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 28 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 29

1 Texas deals.

2 MR. HESKIN: He can answer.

3 MR. BERMAN: Again, I want to be

4 clear for the record what you're doing with

5 a class cert motion, so now you're talking

6 about all products, not just Texas.

7 MR. PROPER: You can state your

8 objection. If you don't want your client

9 to answer the question, tell him don't

10 answer.

11 MR. BERMAN: You can answer as to

12 Texas.

13 MR. PROPER: That wasn't my

14 question.

15 THE WITNESS: Can you restate

16 your question, please?

17 BY MR. PROPER:

18 Q. I want to know, in your

19 experience, what types of repayment terms

20 have you seen in deals involving CBSG,

21 other than daily payments?

22 MR. BERMAN: Objection. You can

23 answer.

24 THE WITNESS: Okay, so some

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 29 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 30

1 clients prefer a daily payment. You might

2 be looking at a transaction as a daily

3 payment being too aggressive. You have

4 clients that request daily payments. They

5 don't like the big payment coming out at

6 the end of the month, similar to a bank.

7 You might have a client that

8 would like the payments taken out two times

9 a week, which we have that product. You

10 might have a client that likes a weekly

11 payment because he has a receivable coming

12 in and maybe he's used to -- maybe Fridays

13 are great for him because -- there's a

14 reason why. So each of these deals, and my

15 job is to tailor the deals to make sure the

16 clients can pay. And also to make sure the

17 clients -- so looking out for both.

18 Make sure the clients have good

19 deals. So the payment is very important,

20 and I know where you're going with it, and

21 I agree with you. The daily payment is

22 specifically -- it has to be a micro

23 payment, and we designed that so people can

24 not feel the payment as much; it doesn't

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 30 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 31

1 always work. So it depends on how many

2 deposits you have per month, or it depends

3 on how many -- your frequency of your

4 receivables, there's a lot of variables,

5 and that's my job.

6 So at Recruiting and Marketing

7 Resources, my job is to be the bridge

8 between the lender and the client, and

9 that's why I'm here today.

10 Q. How many deals are you personally

11 involved with where CBSG funds money to

12 your clients on a yearly basis?

13 A. Every deal.

14 Q. I'm sorry?

15 A. Every deal.

16 Q. What do you mean every deal?

17 Every one of your deals involves CBSG?

18 A. Yes.

19 Q. So when you said your company

20 deals with other lenders, your company may

21 deal with other lenders, but you

22 specifically may not?

23 A. Right.

24 Q. So you're an exclusive sales

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 31 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 32

1 agent for CBSG or no?

2 A. No, I'm not a sales agent. I'm

3 more of a consultant. The salesmen are

4 ISO's, to your point earlier; they send the

5 deals in. My job is to make sure that the

6 deal fits the criteria for the company, and

7 it's also a prudent deal for the customer.

8 Q. Do you do underwriting on behalf

9 of CBSG?

10 A. I don't.

11 Q. Does CBSG have their own

12 underwriting department?

13 A. Yes.

14 Q. Do you work with someone specific

15 in the underwriting department or multiple

16 people?

17 A. Multiple.

18 Q. Who are some of the individuals

19 in CBSG's underwriting department that you

20 work with?

21 A. I'm not going to name any names.

22 Q. I'm sorry?

23 A. I'm not going to name any names

24 today.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 32 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 33

1 Q. You're refusing to answer my

2 question?

3 A. Yeah.

4 Q. Okay. You know the names. You

5 just aren't going to tell me them?

6 A. That's right.

7 Q. Do you have an ownership interest

8 in CBSG?

9 A. I don't.

10 Q. Have you ever had an ownership

11 interest in CBSG?

12 A. No.

13 Q. Have you ever represented to

14 anyone in the public that you are an owner

15 of CBSG?

16 A. No. Not that I know of, no.

17 Q. Have you ever represented to an

18 investor or potential investor that are you

19 are an owner of CBSG?

20 A. No, sales director.

21 Q. You've represented --

22 A. In the past.

23 Q. But not currently?

24 A. No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 33 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 34

1 Q. When was the last time you

2 represented to someone that you are a sales

3 director for CBSG?

4 A. A few hours ago.

5 Q. Who did you make that represation

6 to?

7 A. A client.

8 Q. But you're not a sales director

9 for CBSG?

10 A. Yeah, I am a sales director for

11 CBSG. I don't work there, but I am a sale

12 director. So I handle all the sales for

13 CBSG, which makes me a sales director. I

14 don't specifically work for the company.

15 I'm in a consulting capacity.

16 Q. Do you have a business card that

17 says you're a sales director for CBSG?

18 A. I don't have business cards.

19 Q. So you don't think it's

20 misleading to tell people you're a sales

21 director for CBSG when you're not really

22 employed by the company?

23 MR. BERMAN: Objection. You can

24 answer if you understand the question.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 34 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 35

1 THE WITNESS: No, I don't think

2 that's inappropriate. I think it's

3 helpful. I think it's helpful to the

4 clients to know that we have a direct

5 relationship. It gives them a comfort

6 level, and I think it's a good thing. I

7 think it's a good thing that I work at

8 Recruiting and Marketing Resources because

9 it allows me the ability to customize

10 transactions, not only for CBSG PAR

11 Funding, but maybe there's a deal that

12 doesn't qualify for PAR Funding. Should

13 the person only be a one trick pony? They

14 should be able to go somewhere else. If I

15 can help them, if I can lead them to go

16 somewhere else? It's a good thing, I think

17 for the merchants.

18 Q. Do you tell all the people that

19 you work with that you're a sales director

20 for CBSG?

21 MR. BERMAN: Objection. If you

22 can answer the question.

23 THE WITNESS: I don't know.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 35 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 36

1 Q. I mean as part of --

2 A. I don't walk around telling

3 people -- it's kind of a...

4 Q. So as part of your regular

5 business, a small business is brought to

6 Recruiting and Market Services looking for

7 money, and as part of that conversation

8 with the business, do you typically tell

9 that business owner that you're a sales

10 director for CBSG?

11 MR. BERMAN: Multiple objections.

12 If you can answer the compound

13 hypothetical.

14 THE WITNESS: Yeah, I'll tell

15 somebody I'm a sales director at CBSG, you

16 know. We have an agreement with CBSG, PAR

17 Funding. I think it's appropriate, yeah.

18 BY MR. PROPER:

19 Q. Were you a founder of CBSG?

20 A. I guess you can say yes. I help

21 build some of the models, yes. I wouldn't

22 call myself a founder, but I help build a

23 lot of the models, yes.

24 Q. Did you invest any of your own

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 36 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 37

1 capital to start CBSG?

2 A. No.

3 Q. Have you ever represented to any

4 third party that you used our own money to

5 start CBSG?

6 MR. BERMAN: Objection. If you

7 can answer.

8 THE WITNESS: I can't answer.

9 BY MR. PROPER:

10 Q. You can't answer because you

11 don't know or you --

12 A. I've been in the business eight

13 years. I'm not going to say that I said or

14 didn't say something over the past eight

15 years. I don't want to lie to the Court.

16 Q. When you say you developed some

17 of the models for CBSG, can you tell me

18 generally what you developed?

19 A. Sure. The exact model you have

20 in front of you for your client, Fleetwood,

21 I developed that model. It's a

22 consolidation program which was a very

23 helpful product. I developed that product.

24 Some of the bi-weekly products.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 37 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 38

1 In my capacity as a consultant, I

2 learned pretty quickly that having one

3 product isn't a good thing, especially for

4 the merchants in small business in America,

5 so it's very order to tailor the

6 transactions in order to help them get

7 through the advances.

8 Q. Just walk back, and I apologize.

9 When was CBSG founded, in what year?

10 MR. BERMAN: You can answer if you

11 know.

12 THE WITNESS: I'm going to guess,

13 2012.

14 BY MR. PROPER:

15 Q. Who were the individuals that

16 started CBSG?

17 A. I don't know how to answer that

18 question.

19 Q. Do you know who the owners of

20 CBSG were back in 2012?

21 A. No.

22 Q. Do you know who the stock holders

23 were back in 2012?

24 A. No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 38 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 39

1 Q. Do you know who any of the

2 principals were of that company?

3 A. No.

4 Q. Do you know who any of the

5 directors were of the company?

6 A. No.

7 Q. Who was the person at CBSG that

8 contacted you for consulting assistance

9 back in 2012?

10 A. I don't remember. It was too

11 long ago.

12 Q. And I apologize if I'm

13 mispronoucing the last name, but do you

14 know a Lisa McElhone?

15 A. Yeah, I'm married to her.

16 Q. Thought so. Am I producing the

17 name correctly?

18 A. Close enough.

19 Q. How long have you been married to

20 Ms. McElhone?

21 A. 14 years.

22 Q. What's your current address?

23 A. 1932 Spruce Street.

24 Q. In Philadelphia?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 39 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 40

1 A. Uh-huh.

2 Q. Was McElhone one the founders of

3 CBSG?

4 A. I'm not going to answer questions

5 on behalf of anybody expect for my own

6 self, that's why I'm here today.

7 Q. Do you know whether she was and

8 you're refusing to answer, or you don't

9 know?

10 MR. BERMAN: It's what you know or

11 don't know.

12 THE WITNESS: All right, so the

13 original founders of the company, there was

14 a lot of different products and services

15 out there for small businesses. I started

16 the business as an independent operator, so

17 I don't want to mislead the Court. I

18 wasn't a founder in the since because of

19 the fact I was an ISO, an independent sales

20 operator, when I first got into the

21 industry before CBSG was founded.

22 BY MR. PROPER:

23 Q. Hold on, now I'm confused, and it

24 won't be the last time.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 40 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 41

1 When you say you started the

2 business --

3 A. In the industry, not in PAR

4 Funding.

5 Q. So when you started in the

6 business, not started CBSG?

7 A. Correct.

8 Q. Got it, continue?

9 A. So I started as an independent

10 sales operator. So, when I say I don't

11 know, I don't remember exactly specifically

12 how it was specifically founded, I don't

13 know what that word really means. I'm

14 pretty good on the telephones. I started

15 as an independent sales operator for

16 another company working for somebody else,

17 and that's how I got in the industry.

18 Q. With respect to your wife, do you

19 know whether or not she was involved in the

20 formation of CBSG?

21 A. Yes.

22 Q. Okay. What was her involvement?

23 MR. BERMAN: If you can answer.

24 THE WITNESS: I don't understand.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 41 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 42

1 What you mean by formation? How do you

2 formulate a company? What does that mean?

3 BY MR. PROPER:

4 Q. Well, there's papers that are

5 filed in order for --

6 A. I don't know; her lawyers would

7 know that. I don't know.

8 Q. So your wife was involved with

9 dealing with the lawyers and setting up the

10 company and so on and so forth, right?

11 MR. BERMAN: Objection. You can

12 answer.

13 THE WITNESS: I don't know. I

14 was a sales operator. I don't know what

15 she did. She ran her own business.

16 BY MR. PROPER:

17 Q. Do you know if your wife invested

18 any of her own money in the start or

19 formation of CBSG?

20 A. I have no idea.

21 Q. Okay. Is your wife currently an

22 employee of CBSG?

23 A. Yes.

24 Q. Has she always been an employee

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 42 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 43

1 of CBSG since it was founded?

2 A. Yes.

3 Q. Does she have a title at CBSG?

4 A. I don't know what her title is

5 at CBSG. We're not really big on titles

6 like you guys are here, so I don't really

7 think she has a title.

8 Q. Do you know if she's an officer

9 or director of CBSG?

10 A. I don't know.

11 Q. Has she ever represented herself

12 to the public as the president of CBSG?

13 A. I don't know what she does in

14 public.

15 Q. Do you know who else was

16 assisting your wife back in 2012 in

17 starting CBSG?

18 A. No.

19 Q. Were there other people involved?

20 A. I don't know any of these

21 questions. How my wife operated her

22 business or formulated her business.

23 Q. What experience, if any, did your

24 wife have in financial services prior to

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 43 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 44

1 2012?

2 A. My wife was a mortgage broker.

3 Q. Who did she work for prior to

4 2012?

5 A. I don't know the name of the

6 company. She's a licensed mortgage broker.

7 She's a Saint Joe's graduate. She's

8 brilliant. If you guys are to insinuate at

9 all that she was incapable of starting this

10 business, she's a lot smarter than me. So

11 if I were you guys, I wouldn't get her in

12 here. Just for clarity, because we're

13 going through a lot of this for Judge --

14 MR. HESKIN: Joe, to the extent

15 you can answer for her, we don't need to

16 depose her.

17 THE WITNESS: I'm trying to, but

18 it's hard to answer for somebody else.

19 She's a brilliant person. Woman-owned

20 business. She's very smart. I run the

21 sales side of the business, that's what I'm

22 good at. I'm not very good at the legal.

23 I'm not very good at the accounting; I'm

24 not good at that stuff. I'm very good at

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 44 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 45

1 looking at transactions. I'm good at

2 talking to people on the phones, and that's

3 my role, hence why I own my shop,

4 Recruiting and Marketing Resources.

5 BY MR. PROPER:

6 Q. Are you an owner of Recruiting

7 and Marketing Resources?

8 A. No.

9 Q. When you say you have your own

10 shop, what does that mean?

11 A. I run the shop. I'm the

12 director, so I'm in the office everyday,

13 you know, running the shop.

14 Q. Who owns Recruiting and Marketing

15 Services?

16 A. I'm not sure how it's formatted

17 right now.

18 Q. You've worked for Recruiting and

19 Marketing Services as the director for

20 seven years, right?

21 A. Yes.

22 Q. You don't know any of the owners?

23 A. No.

24 Q. But you've never been one of the

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 45 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 46

1 owners?

2 A. No.

3 Q. And you've never had a financial

4 stake in the business, right?

5 A. No.

6 Q. Do you know how that business is

7 formed? Is it a partner or corporation?

8 A. Let me clarify. The reason why I

9 don't know these answers, this company was

10 formatted in 2008. I don't know who the

11 actual owner is of the company.

12 Q. Do you report to someone?

13 A. No.

14 Q. Are you involved in preparing

15 financial statements for the company?

16 A. No.

17 Q. Do you run the office?

18 A. Yes.

19 Q. How many employees are there?

20 A. About 25.

21 Q. And you have no idea whose above

22 you at the company, right?

23 MR. BERMAN: Objection. You can

24 answer if you understand.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 46 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 47

1 THE WITNESS: No, I don't. I

2 don't have anybody above me. I just don't

3 want to answer you incorrectly about the

4 formation of the company and who the owners

5 of the company are, because as I explained

6 to you, it was formatted so long ago. I

7 don't know.

8 BY MR. PROPER:

9 Q. Okay. Are there any other

10 directors of the company?

11 A. I don't know.

12 Q. Is there anyone that is at the

13 same level that you are within the company?

14 A. No.

15 Q. Are you, to your knowledge, the

16 person that runs the day-to-day activities

17 of Recruiting and Marketing Services?

18 A. Yes.

19 Q. Does your wife have any

20 involvement in that business?

21 A. No.

22 Q. Now, when you said you run the

23 sales side of CBSG, what did you mean that

24 by that?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 47 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 48

1 A. CBSG doesn't have any sales

2 people. CBSG is only a funder.

3 Q. Are you using CBSG and PAR

4 Funding separately?

5 A. No. CBSG is PAR Funding. CBSG

6 is d/b/a PAR Funding.

7 Q. I just wanted to make sure we

8 were on the same page because I'm using

9 them interchangably.

10 Q. No, you're right?

11 A. You're right. CBSG is d/b/a PAR

12 Funding.

13 Q. So when you say that CBSG has no

14 sales force, if I'm understanding you

15 correctly, all of their sales are

16 outsourced to your -- I don't want to say

17 your company because you don't own it, but

18 are outsourced through third parties or no?

19 MR. BERMAN: Objection. You can

20 answer if you understand.

21 THE WITNESS: Yes, so CBSG

22 doesn't have any sales. It's a fintech

23 company. All it does is give out advances,

24 different types of products. My job is to

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 48 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 49

1 be intermediary between the independent

2 sales operators, which there's 400 of them,

3 which is a lot of work.

4 BY MR. PROPER:

5 Q. Sure.

6 A. And I'm pretty good on the

7 phones, as I explained. They gave me a job

8 in Recruiting and Marketing Resources to

9 put together deals and make sure that

10 clients are satisfied with the product

11 before it goes into PAR Funding or any

12 other lenders portal.

13 Q. That's help. Was Recruiting and

14 Marketing Services formed at the same time

15 CBSG was formed?

16 A. No. As I said, it was formed a

17 long time ago, that's why I don't have the

18 answers for you.

19 Q. Okay, but Recruiting and

20 Marketing Resources has been around for

21 about seven years, which puts us around

22 2012, which is when CBSG was form?

23 A. No, that's incorrect.

24 Q. So when was Recruiting and

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 49 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 50

1 Marketing Services formed?

2 A. I just said I don't remember.

3 Q. A long time ago?

4 A. Yeah, a long time ago.

5 Q. You started working for

6 Recruiting and Marketing Services in 2012,

7 correct?

8 A. About.

9 Q. Was your consulting arrangement

10 with Recruiting and Marketing Services done

11 because of the formation of CBSG?

12 A. No, not at all. As a matter of

13 fact, I closed many transactions with other

14 lenders through Recruiting and Marketing

15 Resources before CBSG was even formed, so

16 my capacity at Recruiting and Marketing

17 Resources has been before CBSG was formed.

18 Q. So prior to CBSG, you worked for

19 Recruiting and Marketing Services in a

20 consulting capacity?

21 A. Yes.

22 Q. And at that time, if businesses

23 came to you looking for a need, you would

24 refer them to a variety of different

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 50 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 51

1 lenders, right?

2 A. Sure.

3 Q. Who were some of the lenders you

4 worked with before CBSG?

5 A. On Deck, Papal, Rapid.

6 Q. Yellowstone?

7 A. No, I never worked with

8 Yellowstone.

9 Q. How about Richmond Capital?

10 A. No.

11 Q. Is it Recruiting and Marketing

12 Services?

13 A. Recruiting and Marketing

14 Resources.

15 Q. Recruiting and Marketing

16 Resources, I'm sorry.

17 How did it come about that you

18 began to be only refer businesses that you

19 dealt with to CBSG.

20 MR. BERMAN: Objection.

21 Mischaracterization. You can answer.

22 MR. PROPER: Let me take a step

23 back -- it's a pet peeve of mine when I'm

24 accused of mischaracterizing, because if I

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 51 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 52

1 am, I am, but I try not to.

2 BY MR. PROPER:

3 Q. Did you testify previously that

4 all of the deals that you have are with

5 CBSG?

6 A. No. I said that all the deals

7 that CBSG does comes through me.

8 Q. Got it.

9 A. But on top to have that, I also

10 source for other companies.

11 Q. So what percentage of your deals

12 are with CBSG versus other lenders?

13 A. I would have to look. I would

14 have to say 60/40.

15 Q. 60 CBSG 40 others?

16 A. Yes.

17 Q. Thank you, I did mischaracterize.

18 But all of the deals that CBSG funds come

19 from you?

20 A. Yeah, so it's very -- I think

21 it's very important that that occurs. We

22 want to make sure that -- there's an a lot

23 of unscrupulous brokers out there right

24 now, so I work in a capacity of a mediator

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 52 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 53

1 between the broker and the lender.

2 Q. Uh-huh.

3 A. The broker and the client, which

4 I think there's a lot of misrepresentation

5 in the industry, so that's my job.

6 Q. What is -- strike that.

7 Are you familiar with a company

8 by the name of Fast Advance?

9 A. Yes.

10 Q. What does Fast Advance do?

11 A. It's an independent sales

12 operator.

13 Q. Okay. How about Broadway

14 Advance?

15 A. They're an independent sales

16 operator. I think they're also a funder.

17 Q. And are those two companies two

18 of the ISO's that will bring deals to you

19 that may result in CBSG Funding money to

20 businesses?

21 A. Sure, could.

22 Q. And does CBSG pay Fast Advance as

23 well as Recruiting and Marketing Resources

24 when a deal is funded?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 53 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 54

1 A. Yes.

2 Q. Does CBSG have written contracts

3 with different independent sales

4 organizations?

5 A. I believe so.

6 Q. Okay, and as the person that runs

7 the sales side of CBSG, are you familiar

8 with CBSG's annual funding?

9 A. No.

10 Q. Do you know how much money CBSG

11 has funded this year, for instance?

12 A. No.

13 Q. Do you know how many accounts

14 receivable CBSG has outstanding currently,

15 ballpark?

16 A. No.

17 Q. Do you have access to any

18 internal financial documents for CBSG?

19 A. What's that mean?

20 Q. Are you able to review, for

21 instance, CBSG's profit and loss statements

22 to the extent they have them?

23 A. No. My wife reviews them. I

24 don't know.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 54 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 55

1 Q. Have you ever reviewed a profit

2 and loss statement for CBSG?

3 A. I don't think so.

4 Q. Do you know if CBSG has a general

5 ledger?

6 A. What's that?

7 Q. If you don't know, that's fine.

8 A. What is a general ledger?

9 Q. It's an accounting tool that many

10 businesses use.

11 A. I don't know. They have

12 professional accountants up there. They

13 have CPA's. They have controllers. It's

14 in a separate facility; I don't have any

15 access to that.

16 Q. Who are CBSG's accountants, do

17 you know?

18 MR. BERMAN: If you know.

19 THE WITNESS: I don't know the

20 last names. I just know them by first name

21 when they pay us if there's a discrepency

22 in a file.

23 BY MR. PROPER:

24 Q. Do you work in the same office as

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 55 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 56

1 CBSG employees?

2 A. No.

3 Q. Where is your business,

4 Recruiting and Marketing Resources,

5 located?

6 A. It's a separate facility in Old

7 City.

8 Q. So what is the business address

9 for Recruiting and Marketing Resources?

10 A. 22 North 3rd.

11 Q. What is the business address for

12 CBSG?

13 A. CBSG is located in Florida.

14 Q. Does CBSG have an office in

15 Philadelphia?

16 A. No.

17 Q. Have you ever represented to any

18 investor or potential investor that CBSG

19 has an office at 22 North 3rd Street in

20 Philadelphia?

21 MR. BERMAN: Objection. You can

22 answer.

23 THE WITNESS: CBSG doesn't have

24 an office at 22 North 3rd Street.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 56 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 57

1 BY MR. PROPER:

2 Q. I'm asking you whether you

3 personally have ever represented --

4 A. I don't remember representing

5 that.

6 Q. Again, I hear your answer, I just

7 need to finish my question.

8 A. Okay.

9 Q. Have you, to your knowledge, ever

10 represented to any third party that CBSG

11 has an office at 22 North 3rd Street in

12 Philadelphia?

13 A. I don't remember. Don't know.

14 Q. Have you ever met with CBSG

15 investors at 22 North 3rd Street?

16 A. Yes.

17 Q. How often do you meet with

18 investors for CBSG?

19 A. I don't really meet with

20 investors except to talk about different

21 products and services that they're rolling

22 out.

23 Q. Do you do any -- do you do any

24 type of presentations or promotions to try

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 57 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 58

1 to bring investors into CBSG?

2 A. No, they have a separate division

3 that does that.

4 Q. Okay.

5 A. Once in a while they're talk

6 about different products that CBSG is

7 rolling out, and I'll do that for them.

8 Q. Talk about different products

9 where, like in what format?

10 A. Different products, a bi-weekly

11 program, different types of programs so I

12 can explain different programs to people.

13 Q. Are these just people that may

14 stop by the office, or is this a more

15 formal event? I'm trying to understand

16 like what the circumstances might be?

17 A. Stop by the office, could be

18 anything.

19 Q. Yeah. I don't know what the

20 could be anything is, so I'm just wondering

21 if you can give me some examples of the

22 type of interactions you --

23 A. The same way I'm interacting with

24 you right now.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 58 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 59

1 Q. Have you ever given a formal

2 presentation to potential investors?

3 MR. BERMAN: Objection. I'm going

4 instruct him not to answer.

5 MR. PROPER: Okay.

6 BY MR. PROPER:

7 Q. Have you ever represented to an

8 investor or potential investor that CBSG is

9 a lender?

10 MR. BERMAN: Objection. I'm

11 going to instruct him not to answer.

12 MR. HESKIN: What's the basis of

13 that?

14 MR. BERMAN: The same basis in our

15 objection to the class based

16 interrogatories. This is a merits based

17 discovery, and this would be something you

18 should raise with the Court if you're

19 seeing investor based discovery.

20 MR. HESKIN: You mean the ones

21 that are --

22 MR. BERMAN: I said call the

23 Court.

24 MR. HESKIN: Got it.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 59 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 60

1 MR. BERMAN: That's something

2 we've objected to. You have not done

3 anything about our objection. We're going

4 to stand by those objections.

5 THE WITNESS: I would like to put

6 something on the record.

7 MR. HESKIN: Sure.

8 THE WITNESS: PAR Funding is a

9 Florida Company. You're thinking of, and

10 when you're misleading to is, 20 North 3rd

11 Street is a processing office. It's called

12 Full Spectrum. You guys have the wrong

13 address. It's a Florida office.

14 There's a processing entity that

15 processes all the files. We're an fintech

16 company. CBSG is only a lender. In it's

17 capacity, only lends capital. We have from

18 Recruiting and Marketing Resources that

19 sources deal, and Full Spectrum is the

20 actual processing and underwriting arm that

21 handles all of the business for PAR

22 Funding.

23 BY MR. PROPER:

24 Q. So the business that's located at

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 60 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 61

1 20 North 3rd Street is called what?

2 A. Full Spectrum.

3 Q. Have you been to Full Spectrum's

4 office?

5 A. Of course.

6 Q. And Full Spectrum's office on 20

7 North 3rd where your marketing company is

8 on 22 North 3rd?

9 A. Right.

10 Q. Got it. How many employees work

11 at Full Spectrum?

12 A. I don't know.

13 Q. Ball park?

14 A. Ball park?

15 Q. Yeah.

16 A. 50.

17 Q. And are the individuals that work

18 at 20 North 3rd Steet employees of CBSG or

19 no?

20 A. No.

21 Q. Do you know if CBSG or PAR

22 Funding represents to the public that they

23 have an office at 141 North 2nd Street in

24 Philadelphia?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 61 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 62

1 A. Yeah, they did in 2017, Shane.

2 Q. When did that office close?

3 A. 2018.

4 Q. How long did CBSG have a presence

5 at that location?

6 A. 16, 18 years.

7 Q. Why was -- this is if you know,

8 why was CBSG incorporated in Floria?

9 A. I don't know.

10 Q. How often is your wife in

11 Florida?

12 A. A lot. Too much.

13 Q. What's the Florida address?

14 A. I don't have that.

15 Q. Have you ever been to the Florida

16 office?

17 A. Sure.

18 Q. How often do you go down to the

19 Florida office?

20 A. Not that much.

21 Q. What's -- just so I know what

22 that not that much means to you?

23 A. Well, when she goes there, she

24 sends me for coffee. I go get coffee, I

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 62 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 63

1 come back. She has a lot of work to do

2 down there. I don't really go that much.

3 Q. When you're down at the Florida

4 office, do you do work down there?

5 A. No.

6 Q. So you don't --

7 A. I work off my phone.

8 Q. So when you're down in Florida

9 with your wife, you don't go to CBSG's

10 office and work at --

11 A. No.

12 Q. -- like an office or a cubical

13 down there?

14 A. Never.

15 Q. Who is CBSG's CFO?

16 A. I'm not sure who it is. I am not

17 sure who is in that capacity right now.

18 Q. Who is the last CFO that you do

19 know worked in that capacity for CBSG?

20 A. I couldn't say who the last one

21 was.

22 Q. Do you know who Jo Cole is?

23 A. Yeah, sure.

24 Q. Is Jo Cole the current CFO?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 63 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 64

1 A. I wouldn't know.

2 Q. What is your understanding as to

3 what Mr. Cole does for CBSG?

4 A. I wouldn't know. I work for

5 Recruiting and Marketing Resources. They

6 keep me in another business. Their

7 operations have nothing to do with me.

8 Q. Do you know a Bill Bromley?

9 A. Yes.

10 Q. Does Mr. Bromley work for CBSG?

11 A. No.

12 Q. Does Mr. Bromley do any type of

13 consulting work for CBSG?

14 A. I wouldn't know.

15 Q. Do you know a company by the name

16 of Pro Source 2000?

17 A. No. Pro Source 200 I never heard

18 of.

19 Q. I may have the wrong name. Do

20 you know the name of Mr. Bromely's

21 business?

22 A. No.

23 Q. So just to be clear, it's your

24 testimony, to the best of your knowledge,

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 64 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 65

1 that let's say as of October 24, 2019, CBSG

2 did not have an office at 20 North 3rd

3 Street in Philadelphia?

4 A. Say that again, I'm sorry.

5 Q. Let me ask it differently. To

6 your understanding, in what year did CBSG

7 close its 20 North 3rd Street office?

8 MR. BERMAN: Objection.

9 Mischaracterization.

10 BY MR. PROPER:

11 Q. Did they close that office or no?

12 MR. BERMAN: Mischaracterization.

13 BY MR. PROPER:

14 Q. Did CBSG --

15 A. What address? I'm confused.

16 Q. I confuse people a lot, so this

17 is normal for me. So I'll try to work

18 through it. At some point in time, did

19 CBSG have an office at 20 North 3rd Street?

20 A. I wouldn't know that. I'm at 22

21 North 3rd. Remember I told you that?

22 Q. Yeah, yeah, yeah.

23 A. I work for Recruiting and

24 Marketing Resources. I don't know the

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 65 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 66

1 answer to that.

2 Q. A some point in time did CBSG

3 ever have an office --

4 A. I'm trying to establish the fact

5 that my wife has more to do with CBSG than

6 me, and I don't know the answers to those

7 questions.

8 Q. Okay, so if I misheard you, I

9 apologize. I thought you testified that at

10 some point CBSG, and I think I asked a

11 question, you know, isn't it true that CBSG

12 had an office 20 North 3rd Street, and you

13 said, "yes, in 2017 they did, Shane."

14 A. No, I did not.

15 Q. You didn't say that?

16 A. No. I said 141 North 3rd Street.

17 Q. 141, I'm sorry.

18 A. So you guys have the wrong

19 address. 141 North 2nd, CBSG did have an

20 office.

21 Q. Does CBSG, to your knowledge,

22 currently have any office in Philadelphia,

23 at any location?

24 A. I don't know.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 66 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 67

1 Q. When is the last time you've been

2 to an office in Philadelphia that you

3 believe to have been rented or owned by

4 CBSG?

5 MR. BERMAN: Objection. You can

6 answer.

7 THE WITNESS: I don't know.

8 BY MR. PROPER:

9 Q. Would the last time have been the

10 141 North 2nd Street office, or you don't

11 know?

12 A. I don't know, and I don't want to

13 answer the question incorrectly on the

14 record.

15 Q. Have you ever been to an office

16 located at 20 North 3rd Street?

17 A. Yes. We just established that's

18 Full Spectrum.

19 Q. Oh, that's Full Spectrum. Do you

20 know whether or not CBSG represents to the

21 public that the 20 North 3rd Street address

22 is actually their business office?

23 A. I wouldn't know that.

24 Q. Okay, and you've never been an

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 67 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 68

1 officer, director, or owner of CBSG,

2 correct?

3 MR. BERMAN: Objection. Compound.

4 BY MR. PROPER:

5 Q. I'll break it up.

6 Have you ever been an officer of

7 CBSG?

8 A. No.

9 Q. Ever been a director of CBSG?

10 A. No.

11 Q. Ever been an employee of CBSG?

12 A. No.

13 Q. Ever been an owner of CBSG?

14 A. No.

15 Q. Have you ever received any form

16 of profits that were generated by CBSG?

17 A. No.

18 Q. Have you ever hired or fired any

19 employees of CBSG?

20 A. No.

21 Q. Does CBSG do underwriting for any

22 companies other than itself, to your

23 knowledge?

24 MR. BERMAN: Objection. You can

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 68 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 69

1 answer if you understand.

2 THE WITNESS: CBSG doesn't

3 underwrite files.

4 BY MR. PROPER:

5 Q. CBSG does not underwrite?

6 A. No.

7 Q. Who does the underwriting for

8 CBSG?

9 A. Full Spectrum.

10 Q. And I ask questions before about

11 the underwriters at CBSG, which you

12 declined to answer, so I just want to

13 clarify this to see if your response is the

14 same.

15 Are you willing to share with me

16 who the underwriters are at Full Spectrum

17 that underwrite deals for CBSG?

18 A. No.

19 Q. Are you familiar with how Full

20 Spectrum underwrites potential deals that

21 you bring to CBSG?

22 A. I'm familiar with every lender on

23 the street how they underwrite deals.

24 Q. Can you walk me through your

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 69 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 70

1 understanding of Full Spectrum's

2 underwriting process for deals and

3 potential deals that you bring to CBSG?

4 MR. BERMAN: Objection. For

5 Texas?

6 MR. PROPER: Sure.

7 MR. BERMAN: If you know.

8 THE WITNESS: Do you want to go

9 over the entire underwriting guidelines?

10 MR. PROPER: Yeah.

11 THE WITNESS: Ask me some

12 questions.

13 BY MR. PROPER:

14 Q. Are there written underwriting

15 guidelines?

16 A. I wouldn't know that if they

17 write them down.

18 Q. Have you ever reviewed written

19 underwriting guidelines that were prepared

20 by Full Spectrum?

21 A. No.

22 Q. Do you exchange emails with

23 anyone at Full Spectrum about how they

24 underwrite deals for CBSG?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 70 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 71

1 MR. BERMAN: Objection. You can

2 answer if you understand the question.

3 THE WITNESS: I don't understand

4 the question.

5 BY MR. PROPER:

6 Q. Do you know what an email is?

7 And I don't mean to be...

8 A. Yeah, I do.

9 Q. Do you use email in your daily

10 business activities?

11 A. Yes, I do.

12 Q. Do you ever email with

13 individuals at Full Spectrum?

14 A. You didn't ask me that.

15 Q. I'm not saying I did.

16 MR. BERMAN: He's noting my

17 objeciton, which is now why he's going

18 through it slowly.

19 THE WITNESS: Yes, I know what

20 emails are.

21 MR. PROPER: I totally expected

22 that you know.

23 BY MR. PROPER:

24 Q. Have you ever emailed with anyone

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 71 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 72

1 at Full Spectrum?

2 A. Sure.

3 Q. Have you ever emailed with anyone

4 at CBSG?

5 A. I don't know. Well, my wife,

6 she's at CBSG, so yeah.

7 Q. Do you email with anyone else

8 other than your wife at CBSG?

9 A. I don't know.

10 Q. Do you email with Jo Cole at all?

11 A. Sometimes.

12 Q. Ever email with Bill Bromley?

13 A. I email with Shane. I can email

14 anybody.

15 Q. I'm just asking.

16 A. Are you asking me about thousands

17 of emails? I don't want to answer the

18 question incorrectly.

19 Q. Do you save your emails?

20 A. No.

21 Q. What's your policy in terms of

22 deleting emails?

23 A. I don't have a personal policy.

24 Q. I just wonder, do you clean out

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 72 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 73

1 your emails?

2 A. I don't save them. I don't know

3 how to save them.

4 Q. Yeah, yeah, yeah. Are you a guy

5 that's got like 10,000 in his box, or are

6 you going periodically and cleaning it up?

7 A. What do you mean kind of guy?

8 Q. I'm a guy, and I don't delete my

9 emails. So I'm wondering if you're a guy

10 that deletes his emails.

11 A. I don't know if I would classify

12 myself a guy who deletes emails. I don't

13 know.

14 Q. As a personal practice and

15 maintaining your email box, do you ever go

16 back --

17 A. I delete them every night.

18 Q. You delete them every night?

19 A. Yeah.

20 Q. Delete every email?

21 A. Every one.

22 Q. Okay. So the instances that you

23 may have emailed with Mr. Heskin in the

24 past, you wouldn't have any of those emails

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 73 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 74

1 currently?

2 A. I guess not.

3 Q. Well, you couldn't possibly if

4 you delete them every night?

5 A. I guess not.

6 Q. What is your email address?

7 A. Joemac888@aol.com.

8 Q. What's the significance of Joe

9 Mac?

10 A. I like the name.

11 Q. Okay. Do you use the name Joe

12 Mac in any of your business activities?

13 A. Sure.

14 Q. Okay. When did you start using

15 Joe Mac?

16 A. 2002.

17 Q. What was the reason for using

18 Mac?

19 A. I like it.

20 Q. Any other reason?

21 A. Nope.

22 Q. When do you use Mac versus

23 LaForet?

24 A. Any articles that I write, or any

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 74 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 75

1 publications I write on subjects to do with

2 the business, I use my real name because I

3 think it's important. When I'm on the

4 phone with merchants, I like to use Joe

5 Mac, it's easier. It's easier for them to

6 understand, and I also don't want them

7 calling my phone day and night.

8 Q. Okay, but you haven't legally

9 changed your name, right?

10 A. No.

11 Q. Back to underwriting. So -- if

12 you need a break at any time, it's not a

13 marathon, we're going to be here a little

14 bit. Any time you need a break...

15 A. I'm good.

16 Q. So you're not aware of any

17 written underwriting guidelines for CBSG?

18 A. No.

19 Q. But you said you do know how how

20 Full Spectrums underwrites deals for CBSG?

21 A. Yes, I do. I know what's

22 important in a file.

23 Q. Okay.

24 A. So mitigating, qualifying

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 75 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 76

1 factors.

2 Q. Okay.

3 A. Similar to your client that we're

4 talking about her today. We can go over

5 that if you want.

6 Q. Were you involved in the

7 underwriting process for my client's

8 funding for CBSG?

9 A. Absolutely.

10 Q. And he's a Texas business, right?

11 A. Yes.

12 Q. And you work with other Texas

13 businesses, right?

14 A. Sometimes, yeah.

15 Q. Do you know what percentage of

16 your business clients that you refer to

17 CBSG are from the State of Texas?

18 A. I wouldn't know.

19 Q. Do you keep any records where you

20 would be able to ascertain what percentage

21 of the deals or the number of deals

22 involved a Texas business?

23 MR. BERMAN: Objection.

24 THE WITNESS: No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 76 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 77

1 BY MR. PROPER:

2 Q. If you wanted to go back and do a

3 search to determine how many deals CBSG

4 funded with a Texas business, what would

5 you do?

6 A. I don't work at CBSG, so I

7 couldn't do that.

8 Q. But you're their sales arm.

9 A. Correct.

10 Q. So you have all their sales

11 documents, right?

12 A. But I might send the deal

13 somewhere else. How what CBSG does and

14 doesn't do, I wouldn't have access to that

15 data. So I'm the sales arm, maybe I did a

16 Texas deal with On Deck Capital. Maybe I

17 gave it to PayPal, or somebody else.

18 Q. Yeah. All what coulda shoulda --

19 A. Right, so I don't want to testify

20 right now to something I don't know the

21 answer to.

22 Q. Yeah, I'm asking you a different

23 question.

24 A. Got it.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 77 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 78

1 Q. I want to know what you would

2 need to do to go back to your office and

3 figure out how many deals CBSG funded with

4 the Texas business?

5 MR. BERMAN: I think he answered

6 that. Do you want him to answer again?

7 MR. PROPER: Yeah, I missed the

8 answerr.

9 MR. BERMAN: I don't know.

10 THE WITNESS: I don't know.

11 BY MR. PROPER:

12 Q. You don't know how you would do

13 it?

14 A. No. I'm not good on the

15 computer. I mean I sell the deals. I

16 don't know.

17 Q. Do you have any type of data base

18 at Recruiting and Marketing Resources where

19 you can track the individual deals you have

20 with CBSG?

21 MR. BERMAN: Objection. You can

22 answer if you understand the compound.

23 THE WITNESS: Do I have a

24 tracker? No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 78 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 79

1 BY MR. PROPER:

2 Q. When you refer a business to

3 CBSG, and CBSG funds the business, are you

4 with me so far?

5 A. Sure.

6 Q. Recruiting and Marketing

7 Resources gets paid by CBSG?

8 A. Sometimes.

9 Q. So there's times where you'll do

10 a deal for CBSG and not get paid?

11 A. Correct.

12 Q. When do you get paid and when

13 don't you?

14 A. It varies. It depends on the

15 client. It depends how much we have to pay

16 the independent sales operator. It depends

17 on a lot.

18 Q. Do you keep records of each deal

19 that you bring to CBSG?

20 A. No.

21 Q. When you do have a deal with

22 CBSG, are documents generated by your

23 company?

24 A. No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 79 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 80

1 Q. Everything you do is oral?

2 A. Yeah.

3 Q. You don't submit any type of

4 application or anything to CBSG?

5 A. Sure. I submit the application,

6 but I don't produce the documents. You

7 asked me about documents, about contracts

8 specifically, right?

9 Q. No. I'm asking --

10 A. I don't receive any of the

11 contracts from any of the lenders. All I

12 do is send over the application. It gets

13 approved and I deal with the customer.

14 Q. Who prepares the application with

15 the business?

16 A. Could be any sales rep.

17 Q. But it's not you?

18 A. It could be me.

19 Q. Okay. Do you know who prepared

20 the application with my client?

21 A. It was an outside broker. I

22 don't know -- I don't remember his name.

23 Q. So in that instance when an

24 outside broker works with my client on an

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 80 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 81

1 application, it would get sent to you, and

2 you would in turn forward it to who?

3 A. In this case, CBSG.

4 Q. Would you send it to CBSG or

5 would you send it to Full Spectrum or would

6 you send it to them both?

7 A. Well, CBSG funded the deal,

8 right? So that was 2017, the company was

9 much different then, so you're asking me a

10 specific question about your client, now

11 I'm going back to 2017.

12 Q. Okay.

13 A. A little different.

14 Q. Excellent. So when did Full

15 Spectrum start underwriting deals for CBSG?

16 A. I don't have the date.

17 Q. Was Full Spectrum underwriting

18 deals for CBSG in 2017?

19 A. No. Well, can you strike that,

20 please? I'm not positive. I don't

21 remember the exact date that Full Spectrum

22 was incorporated.

23 Q. So who was doing the underwriting

24 for CBSG before Full Spectrum?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 81 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 82

1 A. It was their own underwriters.

2 Q. It was their own underwriting

3 department?

4 A. Yeah.

5 Q. So, you don't know sitting here

6 today whether or not my clients deal was

7 underwritten internally by employees of

8 CBSG, or whether it was outsourced to Full

9 Spectrum, correct?

10 A. That's correct.

11 Q. Okay. Do you know why CBSG

12 started using Full Spectrum?

13 A. No.

14 Q. Does CBSG have an ownership

15 interest in Full Spectrum?

16 A. I don't believe so.

17 Q. Do you know if your wife has an

18 ownership interest in Full Spectrum?

19 A. I don't know.

20 Q. I'm sorry?

21 A. I don't know.

22 Q. Was Full Spectrum in existence

23 before it started underwriting deals for

24 CBSG?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 82 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 83

1 A. I don't know that.

2 Q. Was the manner in which CBSG

3 underwrote files different than how Full

4 Spectrum is underwriting files for CBSG?

5 A. I don't know.

6 Q. You worked with underwriters at

7 CBSG, right?

8 A. Uh-huh.

9 Q. Yes?

10 MR. BERMAN: Verbal, yes, no. He

11 asked you did you work with underwriters at

12 CBSG. You have to answer verbally.

13 MR. PROPER: You just have to

14 answer verbally.

15 THE WITNESS: Oh, yes.

16 BY MR. PROPER:

17 Q. And you work with underwriters at

18 Full Spectrum?

19 A. Right.

20 Q. So explain to me how, if at all,

21 the underwriting process, as you understand

22 it, differs between those two?

23 A. There's a time lapse, so you're

24 bringing me back. So CBSG had their own

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 83 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 84

1 underwriters back when, I don't know when.

2 Q. I know, I'm bringing you back.

3 A. Now it's Full Spectrum, so now

4 we're here. So it's two different things.

5 Your file that we're talking about right

6 now is 2017, so we're mincing words a

7 little bit.

8 Q. I'm not trying to.

9 A. I know, but we are.

10 MR. BERMAN: So just tell him

11 your recollection if you have one.

12 THE WITNESS: I don't know when

13 any of these corporations were formatted.

14 I don't know. You're asking me corporate,

15 internal information. I don't know.

16 BY MR. PROPER:

17 Q. I didn't think I asked --

18 A. All I can do is talk to you about

19 the file, which we should prior get to.

20 MR. BERMAN: Hour and fifteen

21 minutes in, we haven't asked a question

22 about Fleetwood.

23 MR. PROPER: No, we haven't. It's

24 a good point.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 84 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 85

1 MR. BERMAN: It's a great point.

2 MR. PROPER: I may go much longer

3 before I get there, but I appreciate that.

4 I have seven hours, so I'll use it. And if

5 I'm doing a bad job not asking about

6 Fleetwood, you should be happy.

7 BY MR. PROPER:

8 Q. So, let me go back because we had

9 a disconnect. I want to know if you

10 remember how CBSG underwrote deals?

11 A. I don't recall. Everything

12 changes by the minute. It's a very fast

13 business. Things change. I don't remember

14 how deals were underwritten. I can tell

15 you about that file if you wan to talk

16 about that file. I have a good

17 recollection of that one.

18 Q. Why do you have a good

19 recollection of Fleetwood?

20 A. Because I took a look at it

21 before I came here.

22 Q. Got it. From looking at the

23 file, were you able to ascertain whether

24 CBSG did the underwriting or Full Spectrum

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 85 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 86

1 did the underwriting?

2 A. No, I don't have those documents,

3 but I know the transaction. And I talked

4 to your client.

5 Q. So you are not able to answer

6 today how, if at all, the underwriting

7 process at CBSG is different than the

8 underwriting process at Full Spectrum?

9 A. I don't know.

10 Q. Got it. Are there common things

11 that CBSG did when underwriting files that

12 Full Spectrum also does?

13 MR. BERMAN: Objection. You can

14 answer if you understand.

15 THE WITNESS: There's common

16 things that everybody does in the industry.

17 So there's some common things in the

18 underwriting process, for example, pulling

19 somebody's credit.

20 BY MR. PROPER:

21 Q. Let's start there, so I want to

22 talk about some of the common things that

23 CBSG has always done whether they're

24 underwriting files or Full Spectrum is

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 86 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 87

1 underwriting files?

2 A. Or anyone, any company.

3 Q. I just care about any company. I

4 just care about CBSG or Full Spectrum.

5 A. But we're establishing the fact

6 that there are some standards in the

7 industry where we have to pull all credits,

8 being that I'm from Recruiting and

9 Marketing Resources, that's my job, to

10 outsource deals.

11 Q. So let's talk about those

12 standards. One of the standards is pulling

13 a credit report?

14 A. Sure.

15 Q. Is there a particular credit

16 agency that you work with?

17 A. Experian.

18 Q. Do you pull the credit report or

19 does the underwriter pull it?

20 A. I don't pull any of this. I just

21 know the process.

22 Q. Got it. So one of the things is

23 you pull an Experian credit report. Do you

24 understand the purpose of why the credit

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 87 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 88

1 report is important for an MCA transaction?

2 MR. BERMAN: Objection.

3 Foundation.

4 MR. PROPER: You can answer. He

5 objected to the form of the question, which

6 is fine.

7 MR. BERMAN: I didn't, but you

8 can answer.

9 MR. PROPER: Well, that's what

10 you should be objecting to. We have normal

11 stips.

12 MR. BERMAN: Should I really?

13 MR. PROPER: Yeah, because the

14 only objection should be privilege or form,

15 yes.

16 MR. BERMAN: We don't agree on

17 that because there's a Court order here,

18 but that's okay.

19 MR. PROPER: Or scope. Go ahead.

20 MR. BERMAN: I don't need a lesson

21 on being a lawyer. You can answer if you

22 understand the question.

23 THE WITNESS: So their credit is

24 important. To establish debt to income

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 88 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 89

1 rations and affordability for the clients,

2 and I think that's what a lot of cash

3 advance companies nowadays are failing.

4 Getting a good idea of the debt that the

5 owners of the business have is very

6 important. That's on one side of the

7 business, and I would imagine from the

8 lenders side of the business it's important

9 to establish whether they've defaulted on

10 anyone in the past, if they have an tax

11 liens, so on and so forth that might hinder

12 their ability to get paid?

13 BY MR. PROPER:

14 Q. So one of the important in an MCA

15 transaction is the debt to income ratio of

16 the borrower?

17 A. I think so.

18 Q. And in your experience, that's

19 always been something that's important to

20 how CBSG underwrites an and approves deals,

21 right?

22 A. I think it's vital.

23 Q. I understand, and again, I just

24 want to be clear. I understand you think

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 89 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 90

1 it's vital. In your experience, does CBSG

2 also deem that vital?

3 A. I think that CBSG's underwriting

4 guidelines are the best in the industry.

5 Q. And when you say CBSG's

6 underwriting guidelines, what are you

7 thinking of?

8 A. I'm thinking of what you just

9 said, debt to income ratios.

10 Q. By a guideline, how do you know

11 what CBSG's underwriting guidelines are?

12 A. I know every lenders underwriting

13 guidelines. It's my job.

14 Q. How are those underwriting

15 guidelines communicated to you?

16 A. There's a master list that people

17 send out, and you just get to know them.

18 It's familiarity of what people accept and

19 not accept as far as files go. There's no

20 -- there's a box, and you try to stay in

21 that box. Some lenders get a little too

22 aggressive in my opinion, some good, some

23 bad.

24 Q. So CBSG has some type of written

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 90 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 91

1 documents that you've seen that lays out

2 core underwriting guidelines, right?

3 MR. BERMAN: Objection.

4 Mischaracterization.

5 MR. PROPER: Is that no? I

6 thought you said there was a master list.

7 THE WITNESS: I'm going this for

8 eight years. I mean the guidelines will

9 change according to a lot of different

10 thing, so they don't specifically have to

11 lay them out, but it's obviously -- for

12 example, seasonality, you're not going to

13 fund a landscaping company in Philadelphia

14 in the middle of summer, right? So there's

15 certain things that they'll move in and out

16 of as far as industry goes. As far as

17 seasonality. As far as graphic, so there

18 piece's a lot of different things that

19 companies will look at before they make a

20 credit decision.

21 BY MR. PROPER:

22 Q. Understood. With respect to CBSG

23 specifically, have you seen anything in

24 writing which would lay out any of the

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 91 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 92

1 underwriting guidelines that CBSG --

2 A. No. I don't need to see them, I

3 know what they are.

4 Q. Okay, so who told you what they

5 were?

6 A. Over the years I've memorized

7 them. I figured out the products and

8 services that they have to offer, and we

9 try to facilitate those transactions.

10 Q. Memorize them from a conversation

11 or a document, or both?

12 A. Just conversations, just talking.

13 Q. Okay, so who was the one that was

14 educating you about CBSG's underwriting?

15 A. It's been eight years. I don't

16 remember.

17 Q. Can't think of one person that

18 told you what the guidelines were?

19 A. Not really.

20 Q. So other than the credit report,

21 what are some of the other standards or

22 common things that all lenders do including

23 CBSG?

24 A. A financial analysis.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 92 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 93

1 Q. What does that mean?

2 A. A financial analysis of what the

3 bank statements look like, and if the deal

4 is prudent, if it's a transaction that

5 makes sense, what we do is there's

6 standards in the file that I think there

7 has to be benefit to the borrower. If

8 there's no benefit to the borrower, the

9 transaction shouldn't be done, I'm a firm

10 believer in that. So I think that's the

11 main standard, should be benefit to the

12 customer.

13 If you can't establish benefit to

14 the customer, and they can't prove it out,

15 then you shouldn't do the deal.

16 Q. Does CBSG require that the

17 underwriters review a certain number of

18 bank statements?

19 A. I don't know.

20 Q. Do you know if there's any

21 requirement that CBSG go back six months or

22 a year or two years?

23 A. It depends, again. Like this

24 time of year I think seasonality is

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 93 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 94

1 important, so you want to make sure that

2 the clients are -- the merchants, if you

3 would, are doing good deals, so you might

4 want to get the pay back months in that

5 respect. So you want to get the three

6 months past, and then three months forward

7 just to make sure that seasonality doesn't

8 come into effect because the winter could

9 be challenging for some businesses.

10 BY MR. PROPER:

11 Q. I get three months pasts. In

12 terms of underwriting, how do you get the

13 three months forward?

14 A. From the year before. It's

15 called a look back, so you might go back to

16 '18 and see how the business behaved in

17 order to get a better feel for the merchant

18 and see if he's making an intelligent

19 decision.

20 Q. So CBSG likes to do a year over

21 year analysis?

22 A. Not all the time, I can't vouge

23 for every file, but I think it's important

24 in some cases that's it's done.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 94 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 95

1 Q. Does CBSG have a standard in

2 terms of how far back they want to look?

3 A. Three months.

4 Q. How about Dunn and Bradstreet

5 reports, is that standard to pull?

6 A. Different companies use different

7 products. I think it's important to look

8 at a business report to see if there's any

9 UCC's filed to who's out there. As far as

10 taxes, there are some nice business reports

11 I see different companies using.

12 Q. I asked about Dunn and Brastreete

13 because that was pulled in my clients deal,

14 right?

15 A. All right.

16 Q. Are you aware of that or no?

17 A. No.

18 Q. All right. Is it standard to

19 have some type of business report pulled

20 for deals with CBSG?

21 A. I would hope so, yes.

22 Q. Okay. In your experience with

23 CBSG, is it common for them or an outside

24 underwriter to pull some type of business

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 95 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 96

1 report?

2 A. Sure.

3 Q. And one of the things that is

4 important to look for in a business report

5 are UCC filings you mentioned?

6 A. I think it's important just to

7 make sure that may didn't default on

8 anyone, to protect the the cash advance

9 company. And it's also important to

10 question some of the merchants that could

11 be unscrupulous or maybe make a mistake on

12 taking too much funding, which happens a

13 lot.

14 I think there's a lot of issues

15 in the industry with that, and I think it's

16 important.

17 Q. What else is common or standard

18 in CBSG's underwriting process?

19 A. I think the credit report is very

20 important. The matrix is very important.

21 Analyzing the bank statements is very

22 important to make sure that there's

23 frequency of deposits depending on the

24 product you're going to bring the merchant.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 96 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 97

1 If a merchant has two or three or four

2 deposits a month, you definitely don't want

3 to give them a daily payment because it

4 would be too aggressive on them, so some of

5 those things need to be looked at.

6 Outstanding cash advances is

7 really important to make sure they don't

8 over leverage themselves, and if they do,

9 if you want to help save the business, it's

10 very important to get them into those

11 products and services to help them.

12 Q. Is it common in deals funded by

13 CBSG that CBSG have the business execute

14 some type of security agreement?

15 A. They have an agreement, a

16 standard agreement, yeah.

17 Q. And part of that standard

18 agreement requires the owner to sign some

19 type of personal guarantee, right?

20 A. I'm not sure about the documents

21 right now.

22 Q. How about the documents back in

23 2017, was it standard for business owners

24 to sign a personal guarantee?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 97 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 98

1 A. Yes, it was. A lot of the

2 guidelines changed, and I think it's a good

3 thing. So, specifically in New York there

4 was a lot of problems with COJ's, and I

5 think it's a good thing they did a way with

6 them. Some companies are probably getting

7 a little too aggressive, maybe, and they

8 did away with those COJ's. So now there

9 are no COJ's.

10 Q. That's one of the changes was

11 getting rid of COJ's?

12 A. Yeah.

13 Q. Do you know if deals, if any

14 deals have other forms of executing in the

15 event of a default, like a writ of

16 attorney. Do you know about that?

17 MR. BERMAN: Objection. You can

18 answer if you know.

19 THE WITNESS: I don't know.

20 BY MR. PROPER:

21 Q. Other -- you said there's a

22 standard form that CBSG uses, correct, for

23 MCA agreements?

24 MR. BERMAN: Objection. I don't

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 98 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 99

1 think he did.

2 BY MR. PROPER:

3 Q. Is there a standard form that

4 CBSG uses for merchant cash advances?

5 A. I don't know. What did you mean

6 by a standard form? What does that mean?

7 Is there a contract?

8 Q. Yeah, is there a standard

9 contract that's used?

10 A. Yes.

11 Q. And since 2012, has the form of

12 that contract been roughly the same in

13 terms of what the terms and conditions are?

14 A. Roughly, not the same. All

15 companies have changed their contracts for

16 different types of reviews. As far as CBSG

17 goes, I can tell you one thing about it,

18 which I hear my wife talking about it.

19 There's constantly being reviewed because

20 of pubic audits, so they're constantly

21 looking and reviewing the contracts making

22 sure they're in compliance.

23 Q. Do you know if the advances from

24 CBSG are regulated by any governmental

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 99 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 100

1 entity?

2 MR. BERMAN: Objection. You can

3 answer.

4 THE WITNESS: They are not.

5 BY MR. PROPER:

6 Q. You mentioned audit. Do you know

7 if CBSG uses any independent third party

8 auditors?

9 A. I don't know who they are.

10 Q. Do you know if they use any?

11 A. I'm sure they do.

12 Q. But you've never read a third

13 party auditing report?

14 A. No.

15 MR. BERMAN: Can we take a break

16 for the bathroom?

17 MR. PROPER: Sure.

18 - - -

19 (Whereupon a short recess was

20 taken.)

21 - - -

22 BY MR. PROPER:

23 Q. I saw some document with a Form D

24 that was filed with the Securities and

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 100 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 101

1 Exchange Commission by CBSG. Have you ever

2 seen any type of SEC filing by CBSG?

3 A. That's legal. No.

4 Q. So you weren't involved in that

5 process, right?

6 A. No.

7 Q. And there's a list of a bunch of

8 different people that are called promoters.

9 Do you know what those people do?

10 A. No.

11 Q. And then there's a list of a

12 bunch of different people that get

13 compensation from CBSG, and there's a bunch

14 of different ones. Did you ever deal with

15 an Alvin Holdings?

16 A. No.

17 Q. What about a Lindsay Blake,

18 Incorporated in Springfield?

19 A. No.

20 Q. A company, a Better Financial

21 Plan in King of Prussia?

22 A. No.

23 Q. What about AG Morgan Tax and

24 Accounting?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 101 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 102

1 A. No.

2 Q. So you're not involved with any

3 of those individuals that might be trying

4 to solicit investors for CBSG?

5 A. No, I don't run the sales.

6 Q. Okay. When's the last time you

7 saw Mr. Cole?

8 A. A couple weeks ago.

9 Q. What was the occasion that you

10 saw him?

11 A. Coffee shop.

12 Q. How about Mr. Bromley, when was

13 the last time you've seen him?

14 A. I don't know. I couldn't recall.

15 Q. More than a month?

16 A. Probably.

17 Q. Back to sort of the form of the

18 agreement. Is it a standard form that

19 there's a daily specified amount? Is that

20 standard or does it vary on the repayment?

21 A. It varies. There's no standard

22 in what we do. Every deal is tailored

23 specifically for the client. Meaning that

24 different clients, you can't tailor the

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 102 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 103

1 deal the same. It has to be different

2 because clients have different needs, and

3 also clients have different types of

4 businesses.

5 Q. Is there a standard or common

6 repayment term?

7 A. No.

8 Q. Do all of these deals have a

9 fixed repayment term of some kind? Whether

10 it's three months, six months? Is there a

11 fixed repayment term?

12 A. So, you're question is -- let's

13 try to understand what you're asking me.

14 We purchase receivables. There's a fixed

15 return, which varies. It could be

16 different for every client. So these are

17 not amortized obligations, so they're not

18 loans. So there is a fixed payback, but

19 they do differ.

20 Q. Yeah, I'm just asking, is there a

21 fixed repayment period?

22 A. Period, yes.

23 Q. What is the average length that a

24 business has to repay the advance, in your

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 103 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 104

1 experience?

2 A. Depends on the company and

3 depends on the product. It depends on the

4 needs. It can go 22 business days, I've

5 done deals where clients could, you know, a

6 client would like to factor a receivable

7 for an opportunity, or it could go up to

8 300 days. So it varies upon the need of

9 the client.

10 Q. But every deal has some type of

11 fixed period of time that the money has to

12 be paid back, right?

13 A. Which is essential to our

14 product, yes.

15 Q. Got it. Do all of the contracts

16 with CBSG have some type of default

17 provision?

18 A. What does that mean? I don't

19 understand the question.

20 Q. Do you know what a default is?

21 A. Yes. I don't know what the

22 provision part is though.

23 Q. Let's just talk about a default.

24 Are there guidelines that you're aware of

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 104 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 105

1 that CBSG has to determine when a business

2 is in default under an MCA agreement?

3 A. No.

4 Q. Do you know how CBSG determines

5 when a business is in default?

6 A. That's in the collections

7 department, I don't know.

8 Q. Do you have anything to do with

9 the collections department?

10 A. So, I do, in the sense that I'll

11 try to help my clients get through some

12 tough times, so I will work with

13 collections to, more or less be a liaison

14 between the two before -- especially even

15 in the case with your client. I think I

16 was involved with the collections there as

17 far as helping them get through.

18 So, yeah, I will contact --

19 they'll contact me and I'll contact the

20 client and see if I can help them and see

21 what CBSG, or any other lender will do to

22 help them in the time of need.

23 Q. Does CBSG keep statistics on

24 default rates?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 105 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 106

1 A. I don't know.

2 Q. Do you have any idea what CBSG's

3 current default rate is?

4 A. I wouldn't know.

5 Q. Do you know what CBSG's default

6 rate was in 2018?

7 A. No.

8 Q. What about 2017?

9 A. No.

10 Q. You have no concept as to --

11 A. I can only talk -- I mean I know

12 the files that came through Recruiting and

13 Marketing Resources. I can tell you that I

14 probably had two percent top default rate.

15 Two percent of my merchants probably did

16 bad.

17 Q. And how do you determine what a

18 default is to come up with the two percent?

19 A. I get a report. They'll write me

20 and say your client defaulted.

21 Q. And what is the form of that

22 report?

23 A. It's not a form. I have to pay

24 back the commissions. If I received any

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 106 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 107

1 commissions and the client defaulted, I

2 would have to pay that back. In our

3 industry that's called a claw back, so I

4 would know about that because they took my

5 commissions back.

6 Q. Got it. So in your experience, in

7 about two percent of your deals do you have

8 to pay back your commission?

9 A. Probably, yeah.

10 Q. Is there a time period where the

11 claw back is no longer is applicable? In

12 other words, like if six months pass, is

13 there a period where they can't claw back

14 any more?

15 A. Yeah. Different companies have

16 different claw backs.

17 Q. What is CBSG's policy?

18 A. Well, I give all my commissions

19 back if they don't pay.

20 Q. Okay. In your experience, does

21 CBSG deem it to be a default whenever a

22 business is unable to make a payment?

23 A. No, I don't think that's a

24 default.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 107 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 108

1 Q. What is a default?

2 A. I think if you're looking from a

3 collection stand point, which I guess is

4 what you're asking me, there is, I would

5 imagine, paid as agreed, right? So if

6 somebody paid as agreed through the entire

7 contract, no missed payments, no returns,

8 that would be one way to look at it. A

9 default could constitute a stop payment.

10 Q. What if you have four NCF's? Do

11 you know what an NCF is?

12 A. I don't know.

13 Q. I'm sorry, NSF. I heard of that,

14 yeah.

15 A. Non sufficient funds, yeah. I

16 wouldn't say that would constitute a

17 default, no. I don't think any cash

18 advance company would constitute that as a

19 default.

20 Q. Do you know whether there's an

21 addendum to my client's agreement which

22 states that four NSF's as a default?

23 A. I don't know.

24 Q. You don't now?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 108 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 109

1 A. 2017, I don't remember.

2 Q. Do you know whether it was common

3 in 2017 for CBSG to have in its agreements

4 that were four NSFs is a default?

5 A. I don't know.

6 Q. Do you know if CBSG's agreements

7 currently have a provision which states

8 four NFSs is a default?

9 A. I don't know.

10 Q. Do you know if there's any

11 provision in CBSG's form agreements back in

12 2017 that filing for bankruptcy or

13 declaring bankruptcy is an event of

14 default?

15 MR. BERMAN: Objection.

16 MR. PROPER: Do you know?

17 MR. BERMAN: You can answer if

18 you know.

19 THE WITNESS: I don't know.

20 MR. BERMAN: I raised the

21 mischaracterization issue again for him.

22 BY MR. PROPER:

23 Q. Is filing for bankruptcy an event

24 of default under CBSG's contracts?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 109 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 110

1 A. I don't know.

2 Q. Have you ever read article 3.1 of

3 CBSG's contracts, which is titled Events of

4 Defaults and Remedies?

5 MR. BERMAN: Are you referring to

6 a specific contract or generally?

7 THE WITNESS: That's a 2017

8 contract; I couldn't possibly remember.

9 BY MR. PROPER:

10 Q. Are you aware that in my clients

11 contract, there's a provision in article 3

12 that's titled Events of Defaults and

13 Remedies, are you aware of that?

14 A. I believe you if it says it

15 there. I don't know if I'm aware of it.

16 Q. Is one of the documents that you

17 reviewed in preparation for today's

18 deposition the contract with my client and

19 CBSG?

20 A. No.

21 Q. Do you know if it's an event of

22 default under the agreement with my client

23 and CBSG that merchant shall admit in

24 writing its inability to pay its debts or

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 110 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 111

1 shall make a general assignment for the

2 benefit of creditors or any proceedings

3 shall be instituted by or against merchants

4 seeking to adjudicate it a bankrupt or

5 insolvent, or seeking reorganization,

6 arrangement adjustment, or composition of

7 it or its debts?

8 A. I'm not a lawyer. I don't know

9 even what that means. Respectfully, you

10 guys, I don't know -- I'm not trying to be

11 aloof. I don't understand any of this.

12 I'm not a lawyer. I'm a salesman for

13 Recruiting and Marketing Resources, and

14 what CBSG wrote in their contract, I don't

15 know. Especially back in 2017.

16 Q. In your experience in 2017, did

17 CBSG treat the filing of bankruptcy to be

18 an event of default?

19 A. I don't know.

20 Q. Have you ever been involved with

21 a situation where one of your clients has

22 filed for bankruptcy?

23 A. Sure.

24 Q. Has one of those clients --

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 111 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 112

1 strike that. Has there be been an instance

2 where wasn't of the clients that have filed

3 for bankruptcy had an outstanding

4 obligation to CBSG?

5 A. Probably.

6 Q. And in those instances that

7 you're thinking of, did CBSG pursue

8 collections or attempt to get its money

9 back from the borrower?

10 A. I don't know the exact

11 underwriting -- the exact collections

12 standards for CBSG, but if I were to guess,

13 I don't think you're allowed to collect

14 when someone is in bankruptcy. After

15 they're in bankruptcy they put a stay, and

16 you're not allowed to contact the merchant.

17 Usually it's done through a trustee, if you

18 guys are familiar with that process.

19 Q. Do you know if CBSG files claims

20 as part of its common practice when a

21 borrower files bankruptcy?

22 MR. BERMAN: Objection. You can

23 answer.

24 MR. PROPER: Do you know?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 112 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 113

1 THE WITNESS: I don't know.

2 BY MR. PROPER:

3 Q. Do you know whether CBSG secures

4 any of its MCA agreements with mortgages?

5 A. Yes.

6 Q. Have you had --

7 A. On occasion. Because, again,

8 it's very important for me to say this,

9 there's many different products and

10 services, so we have collateralized

11 products. We have all different products

12 and services that we offer our clients.

13 Q. Do you file UCC liens -- strike

14 that. Does CBSG file UCC liens as part of

15 its common business practice?

16 MR. BERMAN: Objection you can

17 answer.

18 THE WITNESS: I don't know.

19 BY MR. PROPER:

20 Q. What other type of security does

21 CBSG routinely seek from businesses that it

22 funds?

23 MR. BERMAN: Objection. You can

24 answer.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 113 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 114

1 THE WITNESS: Real estate, only.

2 BY MR. PROPER:

3 Q. What other forms of real estate

4 other than mortgages?

5 A. Is there another form of real

6 estate besides a mortgage.

7 Q. So when CBSG is not seeking

8 security from a mortgage, what other types

9 of security is CBSG requiring from the

10 borrower?

11 A. On a collateral deal, or are you

12 going back to MCA.

13 Q. MCA?

14 A. The security is the receivables,

15 we're purchasing receivables.

16 Q. Is the failure of a business to

17 pay back the specified amount, whatever the

18 repayment period is, whether it's a day, a

19 week or a month. Is the failure to pay

20 back to that money a default?

21 MR. BERMAN: Objection. You can

22 answer.

23 THE WITNESS: Is the failure to

24 pay back money to a company that you took

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 114 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 115

1 and didn't pay it back? I would say that's

2 a default, yes.

3 BY MR. PROPER:

4 Q. Is that a default as you

5 understand CBSG's MCA agreements? When a

6 business --

7 A. I think it's any business. It's

8 similar to my car. If I don't pay for my

9 car, they're going to impound it. It's the

10 same type of thing, so yes, I would say it

11 constitutes a default.

12 Q. Are aware of any instance where

13 CBSG has not received the money specified

14 under an MCA agreement where CBSG has not

15 treated that to be a default?

16 MR. BERMAN: Objection.

17 THE WITNESS: I don't understand

18 the question.

19 BY MR. PROPER:

20 Q. Yeah. So has there been an

21 instance, in your experience, where a

22 business didn't pay CBSG the money

23 specified in the agreement, and CBSG said,

24 no that's not a default, don't worry about

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 115 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 116

1 it?

2 A. I wouldn't know.

3 Q. Can you think of an instance

4 where that's happened?

5 A. No.

6 Q. Do you know if CBSG has ever

7 commenced a lawsuit personally against the

8 owner of a business when a business has

9 filed bankruptcy?

10 A. I don't know. I'm not in legal.

11 They have attorneys that handle that, I

12 guess.

13 Q. What's the difference between a

14 collateral deal and an MCA?

15 A. The collateral is -- when a

16 person purchases collateral, they're

17 looking to potentially get a longer term on

18 the deal as opposed to a specific MCA which

19 might be a little bit shorter that they

20 qualify for, so they'll pledge their

21 commercial asset in order to get a longer

22 term deal.

23 Q. When is a collateral -- strike

24 that.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 116 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 117

1 When is collateral required when

2 the term is longer than what?

3 A. There's no collateral required

4 ever, they volunteer the collateral.

5 Q. So as part of CBSG's underwriting

6 guidelines, if you want money to be paid

7 back in, say over a year, would collateral

8 would be required?

9 A. Could be, depends on the

10 underwriter, yes. Let me clarify that.

11 There's no requirement for collateral. You

12 said the word, "requirement" at the end. I

13 didn't hear you. I'm sorry. There's no

14 requirement for collateral.

15 Q. Is a collateral deal still an MCA

16 agreement?

17 A. Yes.

18 Q. Are all of CBSG deals papered in

19 the form of an MCA agreement?

20 A. Yes.

21 Q. So some may have collateral, some

22 may have different repayment terms, but all

23 of the agreements are structured as an MCA,

24 right?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 117 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 118

1 MR. BERMAN: Objection. You can

2 answer.

3 THE WITNESS: So, we are an MCA

4 company. We purchase receivables. The

5 contracts differ for the different products

6 that we have. Every lender has different

7 products, so the contracts differ. You're

8 going to have different addendums in there.

9 You're going to have all kinds of different

10 things in the contracts according to what

11 the program is that the person qualifies

12 for.

13 BY MR. PROPER:

14 Q. But they're call structured as a

15 sale of receivables?

16 A. Yes. No, purchase of receivables

17 of what their client is selling, we're

18 purchasing. Right.

19 Q. Is CBSG purchasing a set of

20 existing receivables, or is it just

21 purchasing an interest in the future

22 revenue stream of the business?

23 MR. BERMAN: Objection.

24 THE WITNESS: Future revenue

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 118 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 119

1 stream.

2 BY MR. PROPER:

3 Q. So, has there ever been an

4 instance in your experience dealing with

5 CBSG where CBSG underwrites the

6 collectability of a specific outstanding

7 receivable?

8 A. Yeah, I think that it's important

9 to understand the business and know what

10 kind of receivables they have in order to

11 make good lending decisions, yeah.

12 Q. What does CBSG do, either

13 directly when they were underwriting deals

14 themselves, or through Full Spectrum to

15 underwrite the credit worthiness of the

16 debtor, the person that owes money to the

17 business?

18 MR. BERMAN: Objection. You can

19 answer.

20 THE WITNESS: There is no contact

21 with the debtors.

22 BY MR. PROPER:

23 Q. Okay.

24 A. Which makes the product unique.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 119 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 120

1 Most factor agreements, and why people love

2 our product is it's not as cumbersome,

3 number one, and number two, most factors

4 will contact the creditor to let them know

5 that they're owed they money. A lot of

6 people don't like their clients to be

7 contacted, that's why people choose to sell

8 their future receivables as opposed to a

9 specific receivable in a traditional

10 factor.

11 Q. Does CBSG use different forms,

12 depending upon the state, or only different

13 forms depending upon the product?

14 A. I don't know.

15 Q. Do you know if there's a unique

16 MCA form contract for deals involving Texas

17 businesses?

18 A. No.

19 Q. How many Texas businesses have

20 you dealt with in the last six months?

21 A. I think you asked me that

22 earlier. I don't know.

23 Q. I asked you more generally, but

24 I'm asking as specific time frame.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 120 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 121

1 A. I don't know.

2 Q. How about in the last 30 days?

3 A. I call 500 people a day. I don't

4 know who is from Texas.

5 Q. Well, in order to fund the deal,

6 one of the things you have to ascertain on

7 behalf of CBSG is where the business is

8 located, right?

9 A. Uh-huh.

10 MR. BERMAN: Objection.

11 BY MR. PROPER:

12 Q. Yes?

13 A. Yes.

14 Q. In fact, that's one of the

15 questions on the credit application, isn't

16 it?

17 A. Right.

18 Q. Is that something you take note

19 of, where the business is located

20 A. Not really. I don't underwrite

21 any of the files.

22 Q. Do you know if CBSG has records

23 on the location of its individual

24 borrowers?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 121 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 122

1 A. No I do not. I would imagine,

2 yes. As you said, it's in their

3 application, right?

4 Q. Do you have copies of the

5 applications as part of your business

6 files?

7 A. Sure.

8 Q. So you could go back and look at

9 individual applications that resulted in

10 funding by CBSG to determine which of those

11 individuals, since 2015, were located in

12 Texas, right?

13 A. Yes.

14 Q. So I was asking before, which is

15 what I was just trying to get at, is there

16 a way that you could ascertain how many

17 deals funded by CBSG involved a Texas

18 business, and one of the ways you could do

19 it is manually looking at the different

20 applications, right?

21 A. Yeah, and let me clarify

22 something from earlier too because I think

23 we're were tripping on our words here. I'm

24 not a technology person. I don't delete my

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 122 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 123

1 emails on purpose. We have all my emails

2 on a server. I just have a phone. I don't

3 specifically go around deleting emails if

4 that's what you're leading to.

5 Q. I wasn't leading to anything; I

6 just asked questions. Your answers are

7 your answers.

8 A. Thank you.

9 Q. So just to circle back to that.

10 Are your business emails deleted on an

11 daily basis or no?

12 A. I don't know.

13 Q. The emails that you testified to

14 previously as deleting each day are emails

15 on your phone?

16 A. Yeah. In other words, I think I

17 delete them on my phone, but they're

18 obviously stayed saved on our server,

19 right?

20 Q. Well, I don't know how your

21 business works. Do you have a corporate

22 email that you can access through your

23 phone?

24 A. Yes, it's saved on the server, so

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 123 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 124

1 I erase it on my phone. I'm sure it's

2 saved on the server.

3 Q. You're sure it's saved on your

4 server because your attorney told you it

5 was or you know that?

6 MR. BERMAN: Objection. You don't

7 have to answer anything I told you.

8 MR. PROPER: Well, when you

9 whisper in his ear.

10 MR. BERMAN: I didn't whisper

11 anything in his ear, let's not make

12 misrepresentations on the record. You're

13 instructed not to talk about anything I

14 told you. If you know, you can answer the

15 question.

16 BY MR. PROPER:

17 Q. Did you have a conversation with

18 your attorney in the hall about you

19 deleting your emails?

20 MR. BERMAN: You have absolutely

21 no answer to that question.

22 THE WITNESS: Of course.

23 MR. PROPER: I just want to state

24 on the record in the Third Circuit, if you

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 124 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 125

1 have a conversation with your client about

2 specific things that happened during a

3 deposition, then that is a hundred percent

4 discoverable.

5 So if counsel is directing his

6 client not to even answer the question

7 whether the conversation took place, then

8 note my objection.

9 THE WITNESS: I never had a

10 conversation about anything that we spoke

11 about. You can put that on the record.

12 BY MR. PROPER:

13 Q. Have you searched for emails that

14 relate to any of the issues in this

15 lawsuit?

16 A. No.

17 Q. Have you been instructed by

18 anyone that you should be preserving emails

19 that relate to this lawsuit?

20 MR. BERMAN: Objection to the

21 extent it calls for attorney/client, don't

22 provide any information that the attorneys

23 gave you. Otherwise you can answer.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 125 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 126

1 Q. Have you received a litigation

2 hold letter?

3 MR. BERMAN: Again, same

4 instruction.

5 MR. PROPER: Just for the record,

6 it is absolutely not privileged whether or

7 not a witness received a litigation hold,

8 or was instructed whether or not to

9 preserve documents. It is not protected by

10 the attorney/client privilege. So note my

11 objection to that.

12 MR. BERMAN: Except for the fact

13 that he testified that all of his emails

14 are maintained. So you can answer.

15 MR. HESKIN: You mean after he

16 said he deleted them all?

17 MR. BERMAN: It's his testimony.

18 THE WITNESS: I made a mistake.

19 On my phone, I said I deleted them. And

20 you came back to me, and said, "do you have

21 the files"? Of course, I have a server,

22 but I didn't want to misrepresent myself.

23 BY MR. PROPER:

24 Q. Have you ever represented to a

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 126 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 127

1 potential investor of CBSG, that CBSG loans

2 money to borrowers?

3 A. Can you repeat the question?

4 Q. Have you ever represented to an

5 investor, or potential investor of CBSG

6 that CBSG loans money to borrowers?

7 MR. BERMAN: Objection.

8 THE WITNESS: No. I don't know.

9 BY MR. PROPER:

10 Q. Have you ever represented to an

11 investor or potential investor that CBSG

12 has a standard interest rate for its loans?

13 MR. BERMAN: Objection. You're

14 instructed not to answer any investor

15 communications. As I welcomed you before,

16 please call the Court.

17 BY MR. PROPER:

18 Q. Have you ever represented to any

19 third party that CBSG has a standard

20 interest rate of 35 percent on its loans?

21 MR. BERMAN: Objection. You can

22 answer.

23 THE WITNESS: No.

24 BY MR. PROPER:

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 127 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 128

1 Q. Does CBSG have --

2 A. What loans? First of all, I'm

3 confused.

4 Q. Do you know what an interest rate

5 is?

6 A. Sure.

7 Q. Have you ever represented to

8 anyone that the standard rate on CBSG

9 advance is 35 percent?

10 A. CBSG doesn't charge an interest

11 rate.

12 Q. So the answer to my question is,

13 you would have never told any third party

14 that CBSG's average rate is 35 percent?

15 A. We don't charge an interest rate,

16 so of course not.

17 Q. Got it. Have you ever

18 represented to any third party that CBSG

19 has an average factor rate?

20 A. I don't know.

21 Q. Do you know what CBSG's average

22 factor rate is?

23 A. No.

24 Q. Are you familiar with CBSG's

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 128 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 129

1 website?

2 A. Yeah.

3 Q. Does CBSG currently have a

4 website?

5 A. I believe so.

6 Q. Not PAR Funding. Do you know if

7 there's a website specifically for CBSG?

8 A. I don't know.

9 Q. Do you know whether CBSG has ever

10 had a website?

11 A. I'm not sure.

12 Q. Do you know whether CBSG has ever

13 used an application that was titled, A Loan

14 Application?

15 A. I don't know.

16 Q. Has CBSG ever issued a loan

17 product?

18 A. No.

19 Q. Do you know if CBSG has ever

20 represented on its website that its MCA

21 products are loans?

22 A. I don't know.

23 Q. Has the structure of CBSG's

24 products from 2012 to present always been

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 129 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 130

1 in the form of an MCA transaction of some

2 kind?

3 A. I believe so.

4 Q. Do you have email communications

5 with investors?

6 A. No.

7 Q. Do you have email communications

8 with anyone that is trying to solicit

9 investors for CBSG?

10 MR. BERMAN: Objection. You

11 don't need to answer questions with respect

12 to investors. I welcome you to call the

13 Court.

14 BY MR. PROPER:

15 Q. Do you text with any investors or

16 potential investors of CBSG?

17 MR. BERMAN: Same objection. You

18 can call the Court at any time.

19 MR. PROPER: I'm close.

20 MR. BERMAN: Okay, call. The

21 Judge instructed us to do that. We have

22 asserted objections on the record with

23 respect to investor communications for

24 class certification purposes. I welcome

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 130 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 131

1 you to call the Court. We're here now for

2 a deposition. The Judge instructed you to

3 do so if there's a dispute.

4 MR. PROPER: Yeah, I remember the

5 email.

6 MR. BERMAN: So let's call the

7 Court. You know my position.

8 MR. HESKIN: We'll get there.

9 MR. BERMAN: Whenever you want.

10 MR. PROPER: I'm just as anxious

11 as you are, but I'm just showing a little

12 bit of patience. Trying to move things

13 along. Seeing what we can accomplish

14 without disagreeing.

15 Q. I need to ask you this, and it's

16 not to embarrass you in any way. Have you

17 ever been convicted of a crime that

18 involves --

19 A. Yes.

20 Q. Let me just ask the full

21 question.

22 A. I answered already. That's it.

23 MR. BERMAN: Let him ask the

24 question one time.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 131 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 132

1 BY MR. PROPER:

2 Q. I just need to ask the question

3 for the record. Have you ever been

4 convicted of a crime that involves

5 dishonesty?

6 A. Never.

7 Q. Okay. Have you ever been

8 convicted of a crime that involves fraud?

9 A. Never.

10 Q. Was the conviction for the real

11 estate incident in New York, did that

12 involve any type of fraud?

13 A. There was never a real estate

14 company, no.

15 Q. What were you convicted of?

16 MR. BERMAN: Just answer that one

17 question. Well -- strike that. You have

18 his public record. Do you want to ask him

19 if he was convicted of that crime?

20 MR. PROPER: I just want to know

21 from the witness, so I know if it involves

22 a crime of dishonesty, which would be

23 relevant.

24 MR. BERMAN: And he said no.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 132 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 133

1 MR. PROPER: And now I'm

2 exploring to find out what he was convicted

3 of so I can determine.

4 MR. BERMAN: You know.

5 MR. PROPER: I'm entitled to ask

6 the witness what he was convicted of so I

7 can determine whether it's relevant to his

8 testimony as a fact witness. If it

9 involves a crime of dishonesty, which he

10 doesn't know what the rules of evidence

11 are, but you know know what the rules of

12 evidence are. And I know what the rules of

13 evidence are. So I need to ascertain from

14 the witness what exactly he was convicted

15 of and when.

16 THE WITNESS: I was convicted in

17 2007 for a money laundering case, and I did

18 my time.

19 BY MR. PROPER:

20 Q. What state was that?

21 A. I came out, and work here now.

22 And life is good, and I want to put that on

23 the record too. New York.

24 Q. Got it. Thank you. That's all.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 133 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 134

1 Does your brother, James, have

2 any dealings with CBSG?

3 A. I won't talk about my brother.

4 MR. HESKIN: Are you instructing

5 him not to answer,

6 MR. BERMAN: I think he answered.

7 BY MR. PROPER:

8 Q. So no questions of any kind. If

9 I asked 50 questions about your brother and

10 his relationship to this case, your answer

11 for all of them, is you're not going to

12 answer?

13 A. The answer is he has nothing to

14 do with the business, so there is no

15 answer.

16 Q. Has he ever had anything to do

17 with CBSG?

18 A. No.

19 Q. Has he ever attempted to collect

20 monies on behalf of CBSG?

21 A. I don't know.

22 Q. Has your brother ever done any

23 work for your marketing company?

24 MR. BERMAN: Objection.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 134 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 135

1 Mischaracterization.

2 THE WITNESS: I don't know my

3 brother's business.

4 BY MR. PROPER:

5 Q. So if you don't -- I just need to

6 ask the questions. Has James LaForte ever

7 done any work on behalf of Recruiting and

8 Marketing Resources?

9 A. I don't know.

10 Q. If he had, would you know?

11 A. I don't know.

12 Q. And you don't know whether James

13 LaForte has done any work, consulting or

14 otherwise, for CBSG?

15 A. No.

16 Q. He hasn't or you don't know?

17 A. I don't know.

18 Q. How about Mr. Geo, do you know

19 who he is?

20 A. Yeah, I do.

21 Q. Who is that gentleman?

22 A. He was a mediator for the company

23 for a while.

24 Q. What's his full name, if you

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 135 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 136

1 know?

2 A. I don't know.

3 Q. When was the first time you met

4 him?

5 A. I don't remember.

6 Q. Do you know anything about his

7 background?

8 A. Not really.

9 Q. What did he do on behalf of CBSG?

10 A. He would -- what we tried to do

11 is, we tried to go out and settle disputes

12 with clients, and I thought it was a great

13 program. He would go and meet clients to

14 see if he could mediate prior to someone

15 catching a judgment or a default.

16 Q. Were you the one that contacted

17 Mr. Geo to go visit with people that were

18 in default?

19 A. So if I had a default, I would

20 contact sometimes to go meet with clients

21 that wanted to meet with us. I thought it

22 was a great program, and it worked out

23 pretty well.

24 Q. How long did the program go on

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 136 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 137

1 for?

2 A. I can't say exact, probably a

3 year and a half.

4 Q. Do you know how many visits Mr.

5 Geo made to CBSG customers during this 12

6 to 18 month period?

7 A. I couldn't say how many.

8 Q. Who was the one that would

9 contact Mr. Geo for him to get involved

10 under this dispute settlement program?

11 A. I don't understand the question.

12 Q. Yeah, so if Mr. Geo was going to

13 make a visit to a business, would you

14 contact him or would someone else contact

15 him from CBSG?

16 A. Someone from CBSG would contact

17 him.

18 Q. Do you know if he had a written

19 agreement with CBSG?

20 A. No.

21 Q. Do you know how he was

22 compensated?

23 A. No.

24 Q. You don't know if he was paid

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 137 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 138

1 based on whether he was successful in

2 getting money from the businesses?

3 A. No.

4 Q. Do you know if Mr. Geo ever made

5 threats to businesses in order to secure

6 payments?

7 A. I don't think he made any threats

8 to any business.

9 Q. Did any customers ever complain

10 to you personally that Mr. Geo made threats

11 to them?

12 A. Of course.

13 Q. Do you recall on how many

14 instances a business owner contacted you

15 directly and complained that Mr. Geo had

16 expressly or implicitly threatened them?

17 A. So the clients, for the most

18 part, the program worked very well. I

19 would say 95 percent of the time, the

20 clients enjoyed the fact that they were

21 able to sit down and mediate with somebody

22 in person as opposed to being on the

23 phones. Like any other product, you know,

24 five percent of them probably didn't like

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 138 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 139

1 the fact that somebody showed up to their

2 office space, but, you know, in general I

3 think the program worked out very well.

4 Q. Why did the program end, if it

5 did?

6 A. Bloomberg article.

7 Q. Why did the Bloomberg article

8 result in that program ending?

9 A. In hindsight I could see the

10 optics on that would look bad, and I know

11 where you guys are going with this, but it

12 was a great program. Most of the clients

13 enjoyed the fact that we went to meet them

14 in person and didn't have a default, we

15 saved a lot of businesses like that.

16 So I say if you saw 500 clients,

17 I would say 450 of those clients had their

18 businesses saved because of the visit as

19 opposed to getting a judgment or lien on

20 them, or potentially losing their business.

21 Q. Are you personally involved at

22 all with contacting business owners in

23 default and trying to come up with like a

24 payment arrangement?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 139 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 140

1 A. Sometimes. If they're my client,

2 yes.

3 Q. Aren't all of CBSG deals your

4 clients?

5 A. So, yes and no. Because I handle

6 the ISOs, and I'm a mediators. Sometimes

7 the ISOs handle it them themselves, it

8 depends.

9 Q. So you mean sometimes the ISOs

10 will deal directly with CBSG without your

11 involvement?

12 A. Correct, or they can go directly

13 to the merchant and try to work out an

14 agreement with the merchant themselves.

15 Q. So just so we're clear because I

16 heard you differently before, which is

17 fine. Are you involved --

18 A. You're talking about collections

19 now, right? We're on another subject now.

20 Q. Not collections. I want to know

21 if all of the funding deals from CBSG

22 derive from your involvement?

23 A. Okay. Respectfully, you're going

24 to another segment of the business. We're

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 140 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 141

1 on collections now. You're bringing up Mr.

2 Geo. You're on collections. You're

3 confusing me because you're going to back

4 to underwriting and processing now, that's

5 different. On the collection side, it is

6 an effort by the ISO because they got paid

7 a commission, right, so they don't want to

8 have a claw back. And they also -- we, we

9 want to make a negotiation with our client

10 to make sure we get paid.

11 Q. That I understand completely. I

12 just want to understand, and I am going

13 back. Are you all the deals that CBSG

14 funds deals that you're involved with at

15 the start?

16 A. I wouldn't say all; I would say

17 majority.

18 Q. And if one of the deals that you

19 had brought to CBSG goes in default because

20 the borrower doesn't make a payment, there

21 have been occasions where you would make a

22 phone call, right?

23 A. Sure.

24 Q. One of those phone calls was to

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 141 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 142

1 Robert Fleetwood, correct?

2 A. Sure.

3 Q. Do you recall the sum and

4 substance of what you and Mr. Fleetwood

5 talked about?

6 A. No.

7 Q. Did you make any threats to Mr.

8 Fleetwood?

9 A. Absolutely not.

10 Q. Did you suggest that you would

11 ruin his business if he didn't become

12 current?

13 A. Absolutely not.

14 Q. That's not something you would

15 do?

16 A. No.

17 Q. Is it a common practice for deals

18 you're involved with to contact borrowers

19 in default to come up with a payment

20 arrangement?

21 A. Sure.

22 Q. And when you come up with a

23 payment arrangement, does CBSG charge a

24 finance or some restructuring fee?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 142 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 143

1 A. I don't know. It depends. If a

2 client is going to initiate another

3 transaction, yes.

4 Q. In my client's case, was there an

5 instance where you negotiated a smaller

6 daily payment to try to help him out?

7 A. Yes.

8 Q. Okay, and when that happened, was

9 a finance fee charged?

10 A. I don't believe so.

11 Q. And you said there were times

12 where a finance fee would be charged, and

13 that was if another deal was going to be

14 made?

15 A. Yeah, if there was a refinance,

16 is that what you're talking about?

17 Q. No. I'm talking about if there's

18 a workout, I'll use that terminology, that

19 a borrower hasn't paid you. The borrower

20 is in default; you're trying to work out a

21 payment arrangement.

22 A. Right.

23 Q. Under that situation, are there

24 any additional fees that are imposed when

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 143 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 144

1 you're restructuring the payment?

2 A. I don't believe so. I'm not

3 sure. Different lending companies handle

4 it differently. I'm not positive.

5 Q. Okay, so you're not sure one way

6 or the other what CBSG does; is that fair?

7 A. In a default situation?

8 Q. Yeah, when there's a restructured

9 payment, you're not sure specifically

10 whether CBSG charges a finance fee or not?

11 A. No, I'm not sure.

12 Q. If CBSG reduces a client's

13 payment, was that borrower in default prior

14 to the new payment term?

15 MR. BERMAN: Objection.

16 THE WITNESS: It depends.

17 BY MR. PROPER:

18 Q. Depends on what?

19 A. What client? Who are we talking

20 about?

21 Q. I'm just talking generally.

22 Isn't it a fair statement that the only

23 time you would work out a payment

24 arrangement is when a borrower was in

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 144 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 145

1 default?

2 A. Of course.

3 Q. Isn't it also true that when CBSG

4 funds money, it expects to be repaid?

5 A. Yes.

6 Q. Isn't it true that when CBSG

7 funds money, that it expects to be repaid

8 whether the business is doing well or the

9 business is doing poorly?

10 A. No. I think that CBSG does a

11 good job working out payments with people

12 in general, I guess.

13 Q. When CBSG advances funds to a

14 business, it expects, no matter what

15 happens, that you're going to pay them

16 back, and if you don't pay them back, CBSG

17 is going to pursue any legal rights it has,

18 right?

19 A. Sure. Same way you guys probably

20 would with your clients.

21 Q. Can you think of any circumstance

22 where CBSG would say, "don't worry about

23 it, you don't have to pay us back"?

24 A. You asked me that earlier, I

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 145 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 146

1 don't know what that means.

2 Q. Okay. It's hard, and I

3 understand your counsel's point. I'm

4 limiting my questions to Texas, which I

5 would like to do at this point, but you're

6 telling me you don't know how many CBSG

7 customers from January 2015 to present were

8 Texas residents, right?

9 A. Correct.

10 Q. And you haven't done anything

11 prior to this deposition to ascertain that

12 number, right?

13 A. No.

14 Q. You don't know whether it's 10,

15 20, 50, 100, 1,000 or more?

16 A. I don't know.

17 Q. Do you have any concept whether

18 Texas is a high volume state for CBSG?

19 A. I don't know about CBSG. Just in

20 the industry itself I could speak on

21 because I do a lot of different deals with

22 a lot of different lenders.

23 Q. Yeah.

24 A. There's some parts of Texas that

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 146 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 147

1 are good, that are busy, yeah.

2 Q. What parts of Texas are busy,

3 generally?

4 A. Dallas is a big city, so there's

5 a lot of business in Dallas. But I

6 wouldn't say Texas specifically is a big

7 state.

8 Q. Do you have specific ISO's you

9 deal with in Texas?

10 A. No.

11 Q. Does CBSG have ISO's for every

12 state?

13 A. No, the ISO is -- you mean the

14 independent offices, where are they

15 located?

16 Q. Yeah.

17 A. I don't know.

18 Q. So maybe it's not necessary to be

19 in a particular state. Do you have a

20 specific ISO, maybe you deal with in

21 Pennsylvania, and may bring clients from

22 states outside of Pennsylvania, right?

23 A. Sure. You don't have to be in

24 the state to transact business.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 147 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 148

1 Q. And going back to the form of the

2 contract back in 2012, were you involved at

3 all in preparing their original MCA formed

4 contract?

5 A. No, I'm not a lawyer.

6 Q. Do you know how CBSG came up with

7 the initial form?

8 A. No.

9 Q. Do you know whether they used

10 some other MCA company's contract as a

11 template for their agreements?

12 A. No.

13 Q. You said you were involved at the

14 start back in 2012 with sort of structuring

15 the types of products that would be

16 offered?

17 A. Yeah, I'm into products, yes.

18 Q. So what was your experience with

19 the MCA industry prior to 2012?

20 A. Experience?

21 Q. Yeah, did you deal with MCA

22 companies as an ISO?

23 A. Yes.

24 Q. And you may have already

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 148 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 149

1 answered --

2 A. I already answered.

3 Q. What type of involvement would

4 you have with the MCA companies?

5 A. Just in a sales capacity.

6 Q. I'm sorry, how many years were

7 you doing that for?

8 A. Probably started in 2011.

9 Q. Did you ever work with a

10 gentleman by the name of John Brawn?

11 A. No.

12 Q. Do you know who he is?

13 A. I've read about him.

14 Q. Why did you decide to have your

15 wife structure her business as an MCA

16 company?

17 MR. BERMAN: Objection.

18 THE WITNESS: For you to say I

19 told my wife to do anything? If you knew

20 her, you'd take that. She does her own

21 thing. She's a lot smarter than me. Since

22 you already exposed me, when I was in jail

23 my wife had to fend for herself because

24 she's very intelligent, very smart, and she

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 149 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 150

1 formatted this whole business. I'm lucky

2 to be involved in a sales capacity so I

3 could have a job. As a convicted felon,

4 I'm lucky to have a position.

5 So my role in the company is on a

6 sales level only. I do not get involved

7 with CBSG business, and I made that deal

8 with my wife as soon as I came home. So,

9 that's how it operates and, you know, she's

10 very capable. So for you to say, it would

11 be insulting to her, that I helped her

12 somehow formulate this great business she

13 has.

14 BY MR. PROPER:

15 Q. I was only suggesting that

16 because you had involvement with MCA

17 companies, so let me start back. Did your

18 wife have some involvement with MCA

19 companies prior to 2012?

20 A. No, but she has a lot of loan

21 experience. She was a mortgage broker, as

22 I stated.

23 Q. Yeah, so do you know how your

24 wife first became aware that there was this

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 150 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 151

1 concept of an MCA?

2 A. No.

3 Q. But the idea did not come from

4 you?

5 A. No, I was in jail. My wife

6 started it herself.

7 Q. Do you know why your wife decided

8 to structure her business as an MCA company

9 versus just an alternative lender?

10 A. MCA is an alternative lender.

11 Q. Do you know why she structured

12 her agreement as to purchase of future

13 receivables as opposed to just a loan?

14 A. No. If I had to make a guess, I

15 think it's a better product than a loan.

16 Everybody seems to think that a loan

17 product is positive thing. I don't see it

18 that way. I think you can do a lot more

19 for merchants by having a merchant cash

20 advance agreement. You could be more

21 nimble, and you could structure deals

22 without having an amortization period to

23 help clients grow their businesses. And I

24 think that's the reason why she has a two

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 151 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 152

1 percent default rate.

2 Her two percent default rate is

3 really a tribute to her and putting

4 together the underwriting guidelines, and I

5 think it's a good thing.

6 Q. Do you know if CBSG ever makes

7 payments on behalf of borrowers who were in

8 default to make it look like the borrower

9 is not in default?

10 A. Can you repeat that please?

11 Q. Do you know if CBSG ever makes a

12 payment to itself when a borrower is in

13 default to make it look like the borrower

14 is not in default?

15 A. No.

16 Q. Do you know if CBSG is

17 artificially misrepresenting its default

18 rate to investors?

19 A. No.

20 Q. Do you know what --

21 A. Do you guys know what default is,

22 by the way?

23 MR. HESKIN: I think we already

24 discussed...

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 152 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 153

1 MR. PROPER: Your counsel is

2 welcome to ask you that later.

3 MR. BERMAN: Yeah. Just...

4 BY MR. PROPER:

5 Q. Do you know where CBSG gets its

6 money to advance funds to borrowers? Does

7 it have a line of credit? Does it do all

8 types of debt financing through

9 investments? How does that work?

10 A. I think they have their own

11 investment portfolio of people they work

12 with, yeah.

13 Q. Do you know if CBSG has a line of

14 credit with any lending facility?

15 A. I don't know.

16 Q. Do you know how the investment

17 funds are set up?

18 A. Private placement memorandums.

19 Q. Have you ever read a private

20 placement memorandum?

21 A. No.

22 Q. Do you know whether the private

23 placement memorandum makes any

24 representations to potential investors that

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 153 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 154

1 CBSG loans money to borrowers?

2 A. No. I didn't read it.

3 Q. Okay. How do you know there's a

4 private placement memorandum?

5 A. Because we -- I saw it in the

6 paper. You saw the fine they had to pay,

7 so they had to set up private placement

8 memorandums, as you guys have in your

9 documents, which I'm sure you'll get to

10 next,

11 Q. I'm not going to get into that.

12 A. Okay.

13 Q. But I know what you're talking

14 about, so thanks.

15 What can you tell me about Mr.

16 Fleetwood's business.

17 A. Can I have my folder?

18 Q. What did you bring with you

19 today?

20 A. Probably the same ones you have.

21 MR. BERMAN: The only thing I'm

22 going to pull out of here is, I think you

23 may have an email from me. Do you, Joe?

24 THE WITNESS: No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 154 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 155

1 MR. BERMAN: You don't? It's

2 just documents? Just making sure before

3 you start looking through that.

4 THE WITNESS: They can look

5 through my documents?

6 MR. BERMAN: They can. If you

7 start referring to things here, they can

8 look at them.

9 THE WITNESS: It's the same

10 things he has.

11 MR. BERMAN: Again, I just want

12 to make sure you don't have an email from

13 me.

14 THE WITNESS: No.

15 MR. PROPER: So you have a folder

16 of documents in front of you, correct.

17 MR. BERMAN: They can look once

18 you start talking about them. I'm just

19 telling you, which is fine.

20 MR. PROPER: Well, I'm entitled

21 to see your notes and other things.

22 MR. BERMAN: No, you're not.

23 MR. PROPER: I absolutely can.

24 THE WITNESS: I just have a legal

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 155 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 156

1 pad with some notes here. You can look at

2 them if you want.

3 BY MR. PROPER:

4 Q. I don't mean to smile being

5 sarcastic, but I've done this a long time

6 and there's a first that happens all the

7 time.

8 Are you telling me you had a

9 folder of documents, but I can't see the

10 folder of documents that were in front of

11 you?

12 A. It's the same folder you have.

13 Q. How do you know what I have?

14 A. Why do you need to see my

15 documents?

16 Q. Because I'm in the middle of a

17 lawsuit and you brought documents here that

18 you thought were relevant --

19 A. The same ones you have right

20 there.

21 Q. How do you know they're the same

22 ones I have? You haven't seen my

23 documents.

24 A. I just saw them.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 156 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 157

1 Q. You saw all my documents?

2 A. Yeah. I see them sitting right

3 there. You have your factoring agreement.

4 I thought we were going to go over the

5 file.

6 Q. What documents did you bring?

7 A. The same ones you have.

8 Q. Which are what?

9 A. The factoring agreement that's in

10 front of you.

11 Q. You have like a hundred plus

12 pages of documents?

13 A. That's your opinion. I didn't

14 see a hundred pages?

15 Q. How thick was the manilla folder

16 you had over there? Two inches? Three?

17 A. Okay.

18 Q. But you got more than a page?

19 A. It's the same as yours, right

20 there.

21 MR. PROPER: Can we take a break?

22 THE WITNESS: I'll bet you.

23 MR. HESKIN: Do we need to call

24 the court on this?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 157 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 158

1 MR. PROPER: Let's take a break.

2 - - -

3 (Whereupon a short recess was

4 taken.)

5 - - -

6 (Whereupon the court reporter

7 marked P-1 for purposes of identification.)

8 - - -

9 BY MR. PROPER:

10 Q. Taking a look at what's been

11 marked as P-1, and I just want to know if

12 you've ever seen that before?

13 A. Sure. I wrote it.

14 Q. There's a picture of an

15 individual depicted upon the bottom of P-1.

16 Who is the individual with the beard?

17 A. I have no idea.

18 Q. Do you know why the article you

19 wrote indicates that someone who is not you

20 as being Joseph LaForte?

21 A. No, I have no idea.

22 Q. So you've never seen that

23 individual before?

24 A. No.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 158 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 159

1 - - -

2 (Whereupon the court reporter

3 marked P-2 for purposes of identification.)

4 - - -

5 BY MR. PROPER:

6 Q. I'll show you what's marked as

7 P-2, which is a document titled Factoring

8 Agreement between CBSG and Fleetwood

9 Services, LLC. Do you see that?

10 A. Yes.

11 Q. Have you seen this document

12 before?

13 A. Yes.

14 Q. Is this one of the documents that

15 you brought with you today?

16 A. Yes.

17 Q. Okay. What other documents did

18 you bring with you today?

19 A. Just background on the file.

20 Information on the client that might be

21 good to answer questions you guys might

22 have.

23 Q. When did you print the documents

24 in your folder?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 159 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 160

1 A. A couple days ago.

2 Q. And did you print those documents

3 to refresh your memory at all about the

4 events that took place between CBSG and

5 Fleetwood?

6 MR. BERMAN: You can answer it.

7 THE WITNESS: Yeah.

8 BY MR. PROPER:

9 Q. And you have some notes in front

10 of you too. Are those notes, or were those

11 notes taken based upon your review of the

12 documents in preparation for the

13 deposition?

14 A. Yes.

15 Q. We ask for the production of the

16 file that Mr. LaForte has?

17 MR. BERMAN: You can see what he

18 has. I changed my mind. You can look.

19 MR. PROPER: Okay.

20 MR. BERMAN: There's nothing

21 there. It's call documents produced in

22 this case, or documents relevant. We can

23 pick our battles on other fights.

24 MR. PROPER: Can we mark this as

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 160 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 161

1 P-3?

2 - - -

3 (Whereupon the court reporter

4 marked P-3 for purposes of identification.)

5 - - -

6 BY MR. PROPER:

7 Q. I'm just look at your note, Mr.

8 LaForte, and there's a reference on the

9 bottom of the first page. "Get the

10 business debt free"?

11 A. Yep.

12 Q. What is that?

13 A. I like to get all the customers I

14 work with in consolidation programs to get

15 debt free.

16 Q. You wanted Mr. --

17 A. I would like Mr. Fleetwood to get

18 debt free because he had multiple advances,

19 and I would like to see him get debt free.

20 That was my notes at the time, and I wanted

21 to make sure I could help the client.

22 Q. Were these your notes taken back

23 in 2017 or taken recently?

24 A. I don't remember. I don't

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 161 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 162

1 remember when I took them.

2 Q. Do you know if you took them two

3 days ago?

4 A. I don't remember.

5 Q. And what is your notes on page

6 two in reference to?

7 A. The client was paying $6,600 --

8 $6,667.00 a day in cash advances before I

9 got the file. When I spoke to the client,

10 they're in the golf course maintenance

11 business. The golf course maintenance

12 business historically gets slower during

13 the winter times. She couldn't afford all

14 the cash advances she had, which are on

15 page one, if I could take a look?

16 Q. Sure.

17 A. Which consisted of five cash

18 advances. So, my job was to help the

19 client get through -- not only get through

20 the winter, but also lower their daily

21 payments. So the main concern, as I stated

22 earlier in my testimony, is benefit to the

23 customer. The customer, the only way that

24 the customer could have survived is if I

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 162 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 163

1 lowered the daily payment number one, and

2 two, injected additional capital into the

3 business.

4 So it's a twofold thing with this

5 client. Number one, the additional

6 capital, the $100,000 that they received

7 helped them get through the winter, and

8 also they had a project that they were

9 going to make a decent amount of money on

10 that we gave them. Number two, lower the

11 daily payments. If I had gave them another

12 position like the rest of the deals as you

13 see on P-3, you would have had a sixth

14 position, and the client would have been

15 bankrupt.

16 So, in this case, I'm very

17 comfortable -- I was very comfortable with

18 this deal because I lowered their payment

19 by $6667.00. On top of that, the

20 additional $100,000 that they received,

21 there was no daily payment on it. There

22 was no stack. So, they actually received a

23 $100,000 in financing for free, which was a

24 total savings on the file of about $48,860

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 163 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 164

1 a month.

2 Q. So how much did CBSG advance to

3 Fleetwood?

4 A. CBSG advanced to Fleetwood, on

5 P-2, $370,000.00.

6 Q. And Fleetwood was required to pay

7 back how much?

8 A. Fleetwood was required to pay

9 back $547,600.00.

10 That's you, Pal. I just wanted

11 to make sure that my lawyer had that.

12 BY MR. PROPER:

13 Q. And over what period of time did

14 Fleetwood have to repay that?

15 THE WITNESS: Did you want to make

16 a pee mark on that one, Bud?

17 What's that, Pal?

18 BY MR. PROPER:

19 Q. Over what period of time?

20 A. It's 110 days.

21 Q. So what would the factor rate be

22 on that, do you know?

23 A. Factor rate is about a 145.

24 Q. And was that a common factor rate

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 164 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 165

1 at the time for CBSG?

2 A. Sure. It's a factor rate in the

3 industry. The factor rates initiated in

4 her other advances. Yellowstone's factor

5 rate was a 149. Richmond's factor rate was

6 a 149. Snaps was a 148. NXGEN was a 149.

7 And Pearl was a 149.

8 Q. Yeah, I --

9 A. I think more importantly than

10 anything else is the term. The reason why

11 this customer fell into hard times before

12 we got to the files is because the customer

13 had $6,600 a day in daily payments on terms

14 of less than 50 days.

15 PAR Funding came in and saved

16 this company from bankruptcy.

17 Q. By lengthening the term?

18 A. But not lengthening the term,

19 gave them $100,000 in fresh capital without

20 charging them a daily payment. There's no

21 daily increase. The actual net savings to

22 this client is $4,300 a day. That's almost

23 $90,000 a month. This customer would have

24 been out of business if it wasn't for PAR

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 165 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 166

1 Funding.

2 Q. So, with respect to the factor

3 rate, in your experience working with CBSG,

4 a factor rate around 1.4 is fairly

5 standard?

6 A. I won't say that. I think it's

7 standard for this file.

8 Q. What is the standard factor rate

9 of CBSG deals?

10 A. Your client took these other

11 advances to this same factor rate. As a

12 matter of fact, they were higher.

13 Q. Yeah.

14 A. There's not a standard. I'm not

15 going to tell you a standard, I'm talking

16 about this file.

17 Q. I'm not asking about anyone other

18 than CBSG.

19 A. I can't answer you because all

20 the factor rates are different.

21 Q. I'm asking you whether or not

22 there's a standard range of factor rates

23 that CBSG has used between 2015 and

24 present?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 166 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 167

1 A. No. It could be a 1.01, could be

2 a 1.49. There's no standards.

3 Q. Do you know whether or not CBSG

4 has ever represented on its website

5 anything about a standard factor rate?

6 A. I don't know.

7 Q. There's also a reference on P-2

8 about a 25 percent specified percentage of

9 receivables that are purportedly being

10 purchased. Do you see that?

11 A. Yes.

12 Q. So can you walk me through what

13 CBSG did, if you know, in determining that

14 the daily payment that Fleetwood was

15 required to pay represented 25 percent of

16 Fleetwood's daily receivables?

17 A. Sure. The income received by

18 Fleetwood is approximately a million a

19 month when we underwrote the files. 25

20 percent of that is $250,000 a month. My

21 payment was $5,000 a day. 5,000 times 22

22 days is less than 25 percent. So, actually

23 the stated percentage holdback is a lot

24 higher than it actually was. We put it on

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 167 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 168

1 there to be careful, and it's actually

2 less. So the stated holdback on this file

3 is probably about ten percent.

4 Q. So you weren't actually buying 25

5 percent of the receivables -- you were

6 buying 25 percent, but it was conservative?

7 A. No. We try to figure out, to do

8 a prudent deal, that 25 percent of the

9 person's income should go towards cash

10 advances. Anything 30 or less is a good

11 debt to income ratio. Similar to a bank,

12 which would be 30, 35 percent. So how

13 you're looking at it is wrong. It's

14 percentage of the income that that person

15 could afford. The stress test on these

16 customers has to be -- this is where the

17 problems come in the industry.

18 If you look, your client was

19 paying $6,667 a day, and on top of that,

20 it's a golf course company. They needed

21 100,000. So I had two choices. We could

22 have been like the rest of these guys, gave

23 them 100,000 at the same rate, and the

24 payment would have been $2600 more a day,

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 168 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 169

1 or we can come up with a creative program,

2 which we did, to lower the payment. So we

3 saved this client. The client was paying

4 $6000 a day, we brought the payment down to

5 $5000 a day, without charging them for the

6 100,000.

7 Q. So you consolidated all my

8 clients debt?

9 A. Exactly.

10 Q. And they became debt free, and I

11 bet they're still open?

12 Q. Well, they weren't really debt

13 free; they owed your company $547,000?

14 A. We paid all these advances back

15 for them. They became debt free. If you

16 complete my program correctly, and if you

17 can look at your consolidation calculator

18 on here, that sheet. If you complete the

19 program, you're not going to have any debt.

20 MR. BERMAN: What sheet are you

21 referring to? Is this something over there

22 in your files?

23 THE WITNESS: Yeah, I have it.

24 BY MR. BERMAN:

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 169 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 170

1 Q. I just want to explore this

2 concept that when CBSG entered into a

3 relationship with my client, my client no

4 longer had debt?

5 A. No, I didn't say that. I said

6 when they finished the program, they

7 shouldn't have had debt, that's correct.

8 Q. All right. Because all of the

9 debt would have been repaid to you?

10 A. I paid off all the debt. I paid

11 off all her advances for her.

12 Q. And then when my client was done

13 with you, all the debt that my client owed

14 to you would have been paid?

15 A. Of course.

16 Q. That I understand.

17 A. Okay. So we paid off the

18 client's debt. Your client was out of

19 business. If I didn't give your client

20 that 100,000 and lower their payment from

21 56 percent of their income down to 21

22 percent of their income, your client would

23 have been out of business.

24 Q. How much did my client owe to the

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 170 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 171

1 other lenders before CBSG consolidated the

2 loans?

3 A. $370,000.

4 Q. Okay, so when you say that you

5 gave my client $100,000 of free money, it

6 wasn't really free, right?

7 A. It was free.

8 Q. Well, my client owed $370,000

9 before you. And he owed $570,000 after

10 you, that's not really flee?

11 A. It is free.

12 Q. How?

13 A. It's free because your client, we

14 didn't increase their daily payment.

15 There's a factor you put on, of course, the

16 factor that was put on the market.

17 Q. Yeah.

18 A. But the payments were less. This

19 customer is in survival mode. Your client

20 went from $900,000 in deposits to $250,000

21 in deposits when I saved them on Christmas,

22 by the way, and your client cried to me at

23 Christmas and I wanted to help. We did a

24 great deal and great service to your

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 171 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 172

1 client.

2 Q. Mr. LaForte, so as part of the

3 transaction with my client, did CBSG pay

4 off the monies that my client owed to the

5 other lenders?

6 A. Yes.

7 Q. Okay, so where he was paying

8 Yellowstone and others before, you paid off

9 all of those and then now instead of my

10 client owing $370,000, he gets $100,000 of

11 fresh money. There's a factor rate on that

12 fresh money, and my client now has to pay

13 $570,000 over a longer term, which then

14 lowers the daily payment?

15 MR. BERMAN: Objection.

16 THE WITNESS: Yes.

17 BY MR. PROPER:

18 Q. I'm trying to understand the

19 structure to boil it down.

20 A. Can I see the consolidation

21 calculator?

22 MR. BERMAN: Let's mark these.

23 - - -

24 (Whereupon the court reporter

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 172 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 173

1 marked P-4 and P-5 for purposes of

2 identification.)

3 - - -

4 BY MR. PROPER:

5 Q. Let's start with P-4, which is

6 one of the documents that you brought with

7 today, correct?

8 A. Yes.

9 Q. What is P-4?

10 A. It's a financial analysis of your

11 client.

12 Q. Generated by whom?

13 A. CBSG.

14 Q. What is some of the information

15 that's on that financial analysis?

16 A. In September the gross deposits

17 for the client were 997,000. Golf

18 business, Texas. Obviously it's a good

19 time of year for golf and in Texas the

20 weather is pretty good.

21 October the deposits went down

22 from $997,000 down to $769,000, so she's

23 trending down almost down about 20 percent.

24 November, $396,000 in deposits,

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 173 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 174

1 it's getting worse for your client.

2 December, $261,785 in deposits

3 for the month. Now your client is

4 completely upside down because at 261, it's

5 going to be very tough for the client to

6 get through the next phase of the business,

7 which usually, from my understand from what

8 your client had mentioned to me, they had a

9 golf course project coming up in February.

10 So my job was to get her to February. So

11 from December -- from January 4 to

12 February, my job was to get your client

13 into a situation where A, I could finance

14 their new project and B, I can lower their

15 payments so they can keep their doors open.

16 Q. And what is exhibit-5?

17 A. So we decided that, because these

18 aren't amortized obligations, I don't

19 necessarily want to pay off the cash

20 advances directly. I let the client pay

21 them off, and there's a couple reasons for

22 that.

23 Number one, the cash advances

24 will get really aggressive back at our

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 174 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 175

1 clients if they find out once they're free

2 and clear of the debt, so what we do is, we

3 give them the money on a weekly basis. We

4 let the clients pay them off.

5 So on the first transaction, we

6 funded the client $113,000. $100,000 to

7 grow their business, and $33,000 to pay off

8 their cash advances.

9 Q. So the cash advance companies are

10 not paid back in one consolidation? It's

11 not like when you advance funds to my

12 client, you're simultaneously paying off

13 the other lenders you're not doing that,

14 right?

15 A. No.

16 Q. You're actually giving money to

17 my clients, some of which is new capital.

18 Some of which is money that was intended to

19 pay off the lenders that he had a

20 relationship with before you?

21 A. Correct.

22 Q. That I understand. And you were

23 aware that my client had these other

24 arrangements with these other lenders

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 175 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 176

1 before the consolidation, right?

2 A. What other arrangements?

3 Q. You knew that my client had

4 existing agreements with other lenders at

5 the time he came to you, right?

6 A. Of course.

7 Q. Because I think on P-3, your

8 notes, you've got some other companies

9 written down and amounts next to it. For

10 instance, it looks like you got Yellow,

11 which I assume you mean Yellowstone?

12 A. Uh-huh.

13 Q. $70,000?

14 A. Yes.

15 Q. And then who is the second

16 company?

17 A. Richmond.

18 Q. $80,000?

19 A. Uh-huh.

20 Q. And then you got Snap at $40,000.

21 A. Uh-huh.

22 Q. Then who's next?

23 A. NXGEN.

24 Q. At $30,000. Then you got Pearl

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 176 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 177

1 at $50,000, right?

2 A. Correct.

3 Q. Okay, so do you know whether all

4 these other companies on P-3 purported to

5 purchase a percentage of my clients future

6 receivables?

7 A. I don't understand the question.

8 Q. Did you ask my client to provide

9 copies of his agreement with Yellowstone,

10 Richmond, Snap, NYGEN and Pearl?

11 A. It's in the exhibits your client

12 wrote out a sheet, if you can take a look

13 in your file.

14 Q. Yeah. Did you understand that

15 those agreements were structured as loans,

16 or whether the document was structured

17 similar to an MCA agreement?

18 MR. BERMAN: Objection. You can

19 answer.

20 THE WITNESS: They're MCA

21 agreements.

22 BY MR. PROPER:

23 Q. So in each of those MCA

24 agreements with Yellowstone, Richmond,

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 177 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 178

1 Snap, NYGEN and Pearl, my client purported

2 to sell some percentage of his future

3 receivables, correct?

4 A. Correct.

5 Q. So if you were to add up all the

6 percentage of future receivables that my

7 client purported to have sold, adding you

8 to that list, do you know if that number is

9 more or less than an hundred percent?

10 MR. BERMAN: Objection. You can

11 answer.

12 THE WITNESS: It's a lot less.

13 BY MR. PROPER:

14 Q. Okay, so what percentage of

15 future receivables did my client purport to

16 see you?

17 A. It's in contract.

18 Q. To Yellowstone, how much?

19 A. $70,000.

20 Q. What percentage of his

21 receivables is on the contract between my

22 client and Yellowstone?

23 A. Well, $604,000, so if you take

24 $70,000 and divide it into 604 average,

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 178 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 179

1 that's the percentage.

2 Q. Do you know what the actual

3 contract says?

4 A. How can I know what's going to

5 happen in the future? I don't know what

6 can happen in the future.

7 Q. I'm just asking you whether or

8 not you've seen the contract between

9 Yellowstone and my client?

10 A. I don't remember. It was a very

11 long time ago.

12 Q. Okay. Do you recall having seen

13 any of the contracts between the six

14 companies or five companies you have

15 written down?

16 A. I'm sure we have them, but I

17 haven't seen them in a while.

18 Q. Do you know, looking at the

19 contracts, not the amount of money that was

20 outstanding, that based upon the contracts

21 how much of my clients receivables he

22 purportedly agreed to sell to those five

23 businesses?

24 A. Again, I'll repeat myself. It

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 179 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 180

1 says your client was averaging $604,000.

2 He had already sold off about $340,000 of

3 his receivables, but had had lower balances

4 which was probably 240, about 30 percent

5 probably before I got involved, yeah.

6 Q. You're saying the total before

7 you got involved, he had already sold to

8 those five businesses 30 percent?

9 A. Probably.

10 Q. But you don't know what the

11 contracts say my client had sold, right, at

12 least you don't recall?

13 A. What the contract said?

14 Q. Yeah. Do you recall specifically

15 what Yellowstone claims to have purchased

16 from my client in terms of a percentage of

17 receivables, do you recall that?

18 A. No, I don't recall that, but they

19 do purchase receivables.

20 Q. Do you recall from a contract,

21 how much Richmond purported to have

22 purchased from my client?

23 A. No.

24 Q. Do you recall from a contract,

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 180 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 181

1 how much NYGEN, Pearl, or Snap purported to

2 purchase from my client in terms of his

3 receivables?

4 A. You're being misleading.

5 Q. How?

6 A. I'll tell you why. Because the

7 contracts say the amount that you can't

8 sell more than on the faceplate of the

9 contract, so you're being misleading.

10 There's no separate sale. It's only the

11 faceplate of the contract. Your client

12 wrote down exactly what they have, and I

13 have the contracts.

14 MR. BERMAN: Are you referring to

15 a document you brought, so there's no lack

16 of clarity? Like some document you have.

17 THE WITNESS: Yeah, the client

18 wrote it, or it would be fraud if it they

19 wrote down something that was incorrect.

20 BY MR. PROPER:

21 Q. So where is the document that my

22 client --

23 MR. BERMAN: You brought a file,

24 just direct him.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 181 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 182

1 THE WITNESS: I'll show you the

2 document that you're the document that your

3 client signed or filled out in order to

4 request services.

5 - - -

6 (Whereupon the court reporter

7 marked P-6 for purposes of identification.)

8 - - -

9 BY MR. PROPER:

10 Q. So here is P-6, and my client has

11 the outstanding balances and the daily

12 payments to the five companies that we've

13 spoken about, right?

14 A. Yes.

15 Q. So where does my client represent

16 on that document the percentage of

17 receivables that he purported to have sold

18 and these companies purported to have

19 purchased?

20 A. Right there in the balance.

21 Q. That's the outstanding balance.

22 So how much --

23 A. He only owes the balances. When

24 you receive sell the receivable, as you

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 182 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 183

1 make your payments, it becomes less, so

2 this is all he owes. There's no other

3 purported, unless there's a document I

4 don't know about. There's no other

5 purported receivable that he could sell.

6 Q. What was the original amount for

7 each of those transactions?

8 A. I could -- I would to look in the

9 file, look into the actual contracts. My

10 guess would be -- I'll give you the exact

11 numbers if you'd like.

12 Q. So you're going to multiply --

13 A. Do you want the exact numbers?

14 I'll do it.

15 Q. I can do the math. I just want

16 to make sure we're on the same page.

17 You're multiplying the daily payment by the

18 term, right? And then come out with the

19 amount that was required to be repaid?

20 A. Uh-huh.

21 Q. Got it. I can do the math.

22 That's how you would determine

23 the rate, too, right?

24 A. The cash advance companies, and

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 183 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 184

1 this is one of the things that I discussed

2 with Mr. Fleetwood. The cash advance

3 companies, these aren't goods companies, in

4 my opinion. They escalated the payments

5 ,So if you look, these terms that she put

6 in here are not the same as the payments

7 that are coming out. So if you look, 12

8 months at $1370 a day on $40,000 doesn't

9 match, so the information was incorrect.

10 So the terms on this are wrong. Your

11 client filled this out incorrectly.

12 Q. Well, this is just the

13 outstanding balances, meaning he had

14 already paid down some of the amount that

15 was owed, right?

16 A. He didn't, no. The contracts

17 were different. No.

18 Q. All right. So, if you were to

19 try to calculate what the rate is that was

20 charged to my client, how would you go

21 about doing that from this information?

22 A. I would say the rates were around

23 the 145 to 147.

24 Q. How do you calculate that?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 184 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 185

1 A. Just knowing the companies that

2 are on this list you can figure it out.

3 Q. Is there a way you can do the

4 math with the information?

5 A. You would have to pull the

6 contract. Do you have the contracts? I

7 can figure it out for you. It's your

8 clients. I'm sure you have them.

9 Q. I'm just asking, how would you

10 calculate a factor rate?

11 A. You can calculate a factor rate

12 taking the amount that you're going to fund

13 the company, multiply by the factor rate,

14 it gives you the right to return, the RTR

15 on the file.

16 Q. How do you back into -- how do

17 you solve for the factor rate? Do you have

18 the information what the daily payment, and

19 the term, and the balance in order to

20 calculate a factor rate from that

21 information?

22 A. Sure, we can figure it out.

23 Q. How would you calculate it?

24 A. Take the original advance, times

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 185 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 186

1 the payment, figure out what the RTR is.

2 Q. Got it. Does CBSG guarantee a

3 certain rate of return to its investors?

4 MR. BERMAN: Objection. You

5 don't have to answer about investors.

6 THE WITNESS: Do you think this

7 was a good deal for your client? I know

8 you're asking the questions, but don't you

9 think we did a nice job for this client?

10 What's your opinion on that guys?

11 MR. PROPER: One, I'm not going

12 to answer questions, and you wouldn't like

13 my answer. So it's not productive.

14 THE WITNESS: Save $4,000 a day

15 and give you $100,000 to keep your doors

16 open, and that's not a good deal?

17 BY MR. PROPER:

18 Q. Do you know what the usuary

19 statute is in the State of Texas?

20 A. This is a cash advance. This is

21 a purchase of future receivables, we're not

22 a loan.

23 Q. I'm just asking a question. Do

24 you know what the usuary laws are in the

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 186 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 187

1 State of Texas?

2 A. No.

3 Q. Do you know what Texas says the

4 maximum rate of legal interest is that can

5 be charged through a Texas business?

6 A. I don't do loans.

7 Q. Okay. Have you ever done any

8 research to determine what the usuary laws

9 are in any particular state?

10 A. I wouldn't need to look at any

11 research, it's a purchase of receivables,

12 it's a factoring agreement.

13 Q. Is one of the reasons that the

14 company is structured as an MCA company is

15 to avoid the usuary laws?

16 A. No.

17 Q. That has nothing to do with why

18 you're structuring these on paper as a

19 purchase of receivables and not a loan?

20 A. We have a 98 percent rate of

21 clients that are satisfied. They like to

22 speed, loans are too slow. They're too

23 nimble and too expensive, so if you really

24 breakdown, if you guys want to get into it,

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 187 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 188

1 we can have a big debate on the SBA.

2 That's a much more expensive and cumbersome

3 product, clients don't want it. You guys

4 don't have your finger on the poll, so it's

5 gone. These people have opportunity and

6 they need capital. Are there bad

7 companies? Yeah, but there's bad in

8 everything. Our company, PAR Funding, does

9 a great job in lowering people's payments

10 and shows a lot of benefit to all of our

11 customers.

12 Q. The $300,000 and some thousand

13 that you provided to my client, what was

14 the source of those funds?

15 A. I don't know.

16 Q. Do you know which investors

17 provided the money for that?

18 MR. BERMAN: Objection.

19 BY MR. PROPER:

20 Q. Do you know if it came from

21 Reticular Fund?

22 A. I don't know.

23 Q. Do you know whether the fund

24 that's used is common to fund all MCA

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 188 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 189

1 transactions?

2 A. I have no idea.

3 Q. Who at CBSG would know what the

4 source of funds are for a particular MCA

5 transaction?

6 A. I don't know.

7 Q. Would Mr. Cole know?

8 A. I don't know. I mean you guys

9 know these aren't syndicated transactions,

10 right.

11 Q. You mean securitized?

12 A. No. Syndicated.

13 Q. Syndicated in what respect?

14 A. It's not a per transaction where

15 any company that would take one specific

16 transaction and try to get an investor to

17 invest in one transaction.

18 Q. I understand that.

19 A. You asked me that question.

20 Q. Let me ask you this question, do

21 you know whether or not an investor that

22 invests in CBSG, let's say $250,000, where

23 that money will be earmarked for a specific

24 set of transactions?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 189 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 190

1 A. No, wouldn't be earmarked for any

2 specific transaction. I would imagine.

3 Q. Do you know that specifically?

4 A. No, but I would imagine that to

5 be an absurd assumption.

6 Q. So you don't know if there's a

7 note between CBSG and an investor which

8 says, I'm going to provide you with a

9 certain rate of return over a period of

10 time, and then within that agreement

11 there's specific agreements that are

12 referenced?

13 MR. BERMAN: Objection.

14 THE WITNESS: I don't know.

15 BY MR. PROPER:

16 Q. Here's P-7. Do you know what

17 this document is, which titled Fleetwood

18 Services Funding Payment History? Have you

19 seen this document before?

20 A. No.

21 Q. So on page two of this document

22 there's a reference, or two references to

23 finance fees. What were those charges for,

24 exactly?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 190 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 191

1 A. Your client -- it looks like your

2 client kept our capital -- let's see, they

3 modified their payments, so we charge a

4 finance fee, a small fee if they modify

5 their payments. In this case she lowered

6 her payment from $5,000 to $3,250, and we

7 charged $7,000 to cover our cost to

8 capital.

9 Q. Does that require a new agreement

10 when the daily payment is modified or

11 reduced?

12 A. I don't know about the legal; I'm

13 not sure.

14 Q. Okay. You don't know whether

15 CBSG requires an borrower to execute a new

16 agreement when there's a reduction?

17 A. I'm not sure, you have to ask

18 legal.

19 Q. Who is the in-house counsel at

20 CBSG?

21 A. I don't know.

22 Q. Do you know who Mr. Hartley is?

23 A. Yes.

24 Q. Is he presently in-house counsel

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 191 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 192

1 for CBSG?

2 A. I don't think so.

3 Q. Has he ever been in-house

4 counsel?

5 A. I don't know. I'm he's a lawyer.

6 Q. Okay. When you say there's a

7 small fee charged if an agreement is

8 modified, was that CBSG's practice whenever

9 there was a workout?

10 A. Yeah, if a client is going to

11 keep the capital longer, they should pay a

12 fee.

13 Q. Got it.

14 A. And sometimes it's appropriate

15 for us to charge a fee, the clients agree,

16 which they usually do sign a new agreement.

17 Like I said if you're keeping the capital

18 longer, they should charge a fee.

19 Q. Is there anything in the

20 agreement, exhibit P-2, which permits CBSG

21 to charge a finance fee if --

22 A. I didn't read that. I don't

23 know.

24 Q. Do you recall have you ever read

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 192 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 193

1 the agreement between my client and

2 Fleetwood?

3 A. Did I read that agreement?

4 Q. Yeah.

5 A. No.

6 Q. When's the last time that you've

7 referred to CBSG's standard contract with

8 its borrowers for any purpose?

9 MR. BERMAN: Objection.

10 BY MR. PROPER:

11 Q. You can answer.

12 A. Can you ask me again?

13 - - -

14 (Whereupon the court reporter

15 read back the requested portion of

16 testimony.)

17 - - -

18 THE WITNESS: I don't know.

19 BY MR. PROPER:

20 Q. Is there ever a purpose that you

21 would look at CBSG's contract?

22 A. No.

23 Q. Okay. I saw an article written

24 about one of the individuals that were

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 193 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 194

1 involved in that securities fine thing by

2 the name of Dean Vagnose. Do you have any

3 interaction with him?

4 A. Not really.

5 Q. Are there any occasions that y0ou

6 would interact with Mr. Vagnose?

7 A. No.

8 Q. This is more for my own personal

9 knowledge, but I saw in some reference that

10 you may have called for the Mariners?

11 A. I did.

12 Q. What years were you involved?

13 A. 1992.

14 Q. Were you involved with their

15 minor league organization too?

16 A. Yes.

17 Q. Where are they based out of?

18 A. Fiora, Arizona. I played

19 baseball at Rollins College before that.

20 Q. That's what I was going to ask.

21 A. And then just a little too small.

22 Q. Mr. LaForte, in the transactions

23 between CBSG and the customers you deal

24 with, do the customers typically have

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 194 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 195

1 attorneys involved?

2 A. No.

3 Q. Can you recall any instance, say

4 in the last year, when the customer was

5 represented by counsel?

6 A. In the initial portion of the

7 transaction?

8 Q. Yeah.

9 A. No. What I'll do is, I'll speak

10 to the CFO's of the company to make sure

11 they understand the documents.

12 Q. Okay. Is there negotiation back

13 and forth about the terms of the agreement,

14 or to do the customers just sign them?

15 A. No, there's a lot of negotiation.

16 I think it's important to put a good deal

17 together for the client. Sometimes they

18 have their own opinion about a file. We

19 can structure it differently for everybody

20 so it depends.

21 Q. When is the last time you recall

22 that the remedies or default provision in

23 CBSG's contract was negotiated or changed

24 in any way?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 195 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 196

1 MR. BERMAN: Objection.

2 THE WITNESS: I don't know.

3 BY MR. PROPER:

4 Q. Do you know if that's ever

5 happened?

6 A. I'm not in legal. I don't know.

7 Q. I'm just asking, in your

8 experience, do you recall any instance

9 where one of the form provisions in CBSG's

10 contract was negotiated and changed for a

11 particular business?

12 A. No, I don't know.

13 Q. Okay. Are you the one that is

14 interacting with the customer and ensuring

15 that the customer signs all the documents

16 that are required or does someone else do

17 that?

18 A. No, CBSG does that.

19 Q. Is there a closer at CBSG?

20 A. A closer?

21 Q. Yeah, or a processor or someone

22 that handles the paperwork with the

23 customer?

24 A. No, Full Spectrum handles the

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 196 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 197

1 paperwork, but CBSG ultimately gets the end

2 docs.

3 Q. But CBSG did that process itself

4 before Full Spectrum got involved, right?

5 A. I don't know what you mean?

6 When? You said before, it's vague.

7 Q. Well, I thought before Full

8 Specturm, CBSG did their own underwriting.

9 Did they do their own processing as well?

10 A. Well, they'd have to, right?

11 Q. That's why I was asking. I was

12 wondering if you knew who at CBSG was

13 fulfilling that function?

14 A. I don't know.

15 Q. Okay. Do you know how many

16 iterations or versions of the MCA agreement

17 were used for Texas customers since January

18 2015?

19 A. What's an iteration?

20 Q. Versions.

21 A. No.

22 Q. Do you know if there was more

23 than one version that's been used for Texas

24 business since January of 2015?

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 197 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 198

1 A. No.

2 Q. Do you know if there's any

3 material differences in the MCA agreements

4 between different Texas businesses and

5 CBSG?

6 A. No.

7 Q. You may have touched on this, but

8 just to elaborate, do you know what the

9 formula that was used for determining the

10 fair market value of the receivables for my

11 client?

12 A. Yeah, it's right here, P-4.

13 Q. So the formula is what?

14 A. You don't want to be over 30

15 percent in debt to income ratios.

16 Q. Is that a standard for all

17 transactions with businesses with CBSG,

18 whether it's a Texas business or otherwise?

19 A. No, no standard formula with

20 anything. You have to work with the

21 customers, specifically your client if you

22 want to talk about this client. The tricky

23 part of it was, she couldn't afford all the

24 dailies. She only did five deposits a

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 198 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 199

1 month coming into December. The client

2 started to struggle. The bigger issue is,

3 they needed $100,000, and their cash flow

4 was getting eaten up. So I provided the

5 $100,000 in financing to them and lowered

6 their payment.

7 Q. Is the manner in which CBSG

8 marketed itself to my client the same for

9 everyone in terms of --

10 A. We didn't market your client, we

11 came from an ISO.

12 Q. That's what I mean. One of the

13 ways that CBSG relies upon new business is

14 its ISO's, right?

15 A. Yes.

16 Q. Do you know what percentage of

17 CBSG's business comes from ISO's?

18 A. No.

19 Q. Do you know if the manner in

20 which ISOs solicit businesses in Texas is

21 standard for how my client was solicited?

22 A. I don't know. I can't ansnwer

23 how an ISO would solicit this particular

24 customer in 2017.

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 199 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 200

1 Q. Okay.

2 - - -

3 (Whereupon a short recess was

4 taken.)

5 - - -

6 MR. PROPER: So, I want to thank

7 Mr. LaForte for his time. I have no

8 further questions of him. In light of his

9 testimony that he's really not involved

10 with investors, I did not want to bother

11 Judge Sanchez with the issue of whether

12 we're entitled to discovery regarding CBSG

13 investors. We will make a motion to compel

14 and the Court can deal with that so we have

15 appropriate guidance in future depositions

16 with appropriate witnesses.

17 MR. BERMAN: And just for clarity,

18 we're not keeping Mr. LaForte's deposition

19 open, it's closed. If they want an

20 opportunity to ask him any of those

21 questions, they have the opportunity, per

22 the Court's direction, from his clerk to

23 call now.

24 MR. PROPER: That's true. Just

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 200 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 201

1 based upon Mr. LaForte's testimony, he does

2 not appear to be the right witness.

3 MR. HESKIN: Assuming we can take

4 his testimony on --

5 MR. BERMAN: We don't agree or

6 disagree. For this purpose, we'll just

7 fight about that another day.

8 MR. HESKIN: Sure. He said he

9 doesn't know anything about it.

10 So there's no reason to call the

11 Judge.

12 MR. BERMAN: Okay. Got it.

13 - -

14 (Whereupon the witness was

15 excused and the deposition ended at 3:46.)

16

17

18

19

20

21

22

23

24

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 201 of

 230
Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 202 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 203

1 INSTRUCTIONS TO WITNESSES

2 Read your deposition over carefully.

3 It is your right to read your deposition

4 and make changes in form or substance. You

5 should assign a reason in the appropriate

6 column on the errata sheet for any change

7 made. After making any change in form or

8 substance which has been noted on the

9 following errata sheet along with the

10 reason for any change, sign your name on

11 the errata sheet and date it. Then sign

12 your deposition at the end of your

13 testimony in the space provided. You are

14 signing it subject to the changes you have

15 made in the errata sheet, which will be

16 attached to the deposition before filing.

17 You must sign it in front of a witness.

18 Have the witness sign in the space

19 provided. The witness need not be a notary

20 public. Any competent adult may witness

21 your signature. Return the original errata

22 sheet & transcript to deposing attorney,

23 (attorney asking questions) promptly!

24 Court rules require filing within

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 203 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 204

1 30 days after you receive the deposition.

2 Thank you.

3 I have read the foregoing

4 deposition and the answers given by me are

5 true and correct, to the best of my

6 knowledge and belief.

7

8

9

10 _______________________

 JOSEPH LaFORTE

11

12

13 ___________________________

WITNESS TO SIGNATURE

14

___________________________

15 ADDRESS

16

17

 My Commission Expires

18

 .....................

19

20

21

22

23

24

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 204 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 205

1 ERRATA SHEET

2 PAGE LINE # CHANGE REASON THEREFORE

3 __________________________________________

4 __________________________________________

5 __________________________________________

6 __________________________________________

7 __________________________________________

8 __________________________________________

9 __________________________________________

10 __________________________________________

11 __________________________________________

12 __________________________________________

13 __________________________________________

14 __________________________________________

15 __________________________________________

16 __________________________________________

17 __________________________________________

18 __________________________________________

19 __________________________________________

20 __________________________________________

21 __________________________________________

22 __________________________________________

23 __________________________________________

24 __________________________________________

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 205 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 206

A

a.m 1:19

ability 35:9

89:12

able 8:5 35:14

54:20 76:20

85:23 86:5

138:21

absolutely 76:9

124:20 126:6

142:9,13

155:23

absurd 190:5

accept 90:18,19

access 54:17

55:15 77:14

123:22

accomplish

131:13

accountants

14:24 55:12,16

accounting

14:21 44:23

55:9 101:24

accounts 54:13

accurately 202:7

accused 17:1,18

18:14 51:24

ACH 28:6

action 1:4 28:24

activities 47:16

71:10 74:12

actual 26:3

46:11 60:20

165:21 179:2

183:9

add 178:5

addendum

108:21

addendums

118:8

adding 178:7

additional

143:24 163:2,5

163:20

address 39:22

56:8,11 60:13

62:13 65:15

66:19 67:21

74:6 204:15

adjudicate

111:4

adjustment

111:6

admit 110:23

adult 203:20

advance 3:14

22:1 24:14

25:8 26:10

27:4 53:8,10

53:14,22 89:3

96:8 103:24

108:18 128:9

151:20 153:6

164:2 175:9,11

183:24 184:2

185:24 186:20

advanced 164:4

advances 23:15

24:2 38:7

48:23 97:6

99:4,23 145:13

161:18 162:8

162:14,18

165:4 166:11

168:10 169:14

170:11 174:20

174:23 175:8

advantage 8:5

advice 11:3 12:9

afford 162:13

168:15 198:23

affordability

89:1

AG 101:23

agency 87:16

agent 32:1,2

aggressive 30:3

90:22 97:4

98:7 174:24

ago 34:4 39:11

47:6 49:17

50:3,4 102:8

160:1 162:3

179:11

agree 30:21

88:16 192:15

201:5

agreed 5:7 108:5

108:6 179:22

agreement 3:10

17:10 20:12,16

20:18,24 22:13

24:15 25:12,16

26:11,14 27:17

27:21 36:16

97:14,15,16,18

102:18 105:2

108:21 110:22

115:14,23

117:16,19

137:19 140:14

151:12,20

157:3,9 159:8

177:9,17

187:12 190:10

191:9,16 192:7

192:16,20

193:1,3 195:13

197:16

agreements

12:20,22 25:13

27:7,22 28:1,5

98:23 109:3,6

109:11 113:4

115:5 117:23

120:1 148:11

176:4 177:15

177:21,24

190:11 198:3

ahead 17:4

88:19

allow 13:5

allowed 19:15

112:13,16

allows 35:9

aloof 111:11

alternative

151:9,10

Alvin 101:15

Amazon 8:12

America 38:4

amortization

151:22

amortized

103:17 174:18

amount 102:19

114:17 163:9

179:19 181:7

183:6,19

184:14 185:12

amounts 176:9

analysis 92:24

93:2 94:21

173:10,15

Analyzing 96:21

and/or 202:22

annual 54:8

ansnwer 199:22

answer 4:2 7:9

7:22 12:2,2

14:8 15:11,20

15:23 19:18

21:8 23:12

26:18 27:11

29:2,9,10,11

29:23 33:1

34:24 35:22

36:12 37:7,8

37:10 38:10,17

40:4,8 41:23

42:12 44:15,18

46:24 47:3

48:20 51:21

56:22 57:6

59:4,11 66:1

67:6,13 69:1

69:12 71:2

72:17 77:21

78:6,22 83:12

83:14 86:5,14

88:4,8,21

98:18 100:3

109:17 112:23

113:17,24

114:22 118:2

119:19 124:7

124:14,21

125:6,23

126:14 127:14

127:22 128:12

130:11 132:16

134:5,10,12,13

134:15 159:21

160:6 166:19

177:19 178:11

186:5,12,13

193:11

answered 78:5

131:22 134:6

149:1,2

answerr 78:8

answers 13:13

46:9 49:18

66:6 123:6,7

204:4

anticipate 13:8

anxious 131:10

anybody 40:5

47:2 72:14

apologize 23:3

38:8 39:12

66:9

appear 201:2

APPEARAN...

2:1

applicable

107:11

application 80:4

80:5,12,14,20

81:1 121:15

122:3 129:13

129:14

applications

122:5,9,20

apply 26:2

202:20

appreciate

13:19 20:7

26:6 85:3

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 206 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 207

appropriate

16:15 36:17

192:14 200:15

200:16 203:5

approved 26:15

80:13

approves 89:20

approximately

167:18

argue 15:21

Arizona 194:18

arm 60:20 77:8

77:15

arrangement

21:12,16 24:19

50:9 111:6

139:24 142:20

142:23 143:21

144:24

arrangements

175:24 176:2

article 3:9 110:2

110:11 139:6,7

158:18 193:23

articles 74:24

artificially

152:17

ascertain 76:20

85:23 121:6

122:16 133:13

146:11

asked 17:17

66:10 80:7

83:11 84:17,21

95:12 120:21

120:23 123:6

134:9 145:24

189:19

asking 23:8 57:2

72:15,16 77:22

80:9 81:9

84:14 85:5

103:13,20

108:4 120:24

122:14 166:17

166:21 179:7

185:9 186:8,23

196:7 197:11

203:23

asserted 130:22

asset 116:21

assign 203:5

assignment

111:1

assistance 39:8

assisting 43:16

assume 176:11

Assuming 201:3

assumption

190:5

attached 203:16

attempt 112:8

attempted

134:19

attorney 6:1

20:8 98:16

124:4,18

203:22,23

attorney/client

125:21 126:10

attorneys

116:11 125:22

195:1

audit 100:6

auditing 100:13

auditors 100:8

audits 99:20

average 103:23

128:14,19,21

178:24

averaging 180:1

avoid 187:15

aware 6:8 75:16

95:16 104:24

110:10,13,15

115:12 150:24

175:23

B

B 3:6 174:14

back 20:10 38:8

38:20,23 39:9

43:16 51:23

63:1 73:16

75:11 77:2

78:2 81:11

83:24 84:1,2

85:8 93:21

94:4,15,15

95:2 97:22

102:17 104:12

106:24 107:2,3

107:5,8,11,13

107:19 109:11

111:15 112:9

114:12,17,20

114:24 115:1

117:7 122:8

123:9 126:20

141:3,8,13

145:16,16,23

148:1,2,14

150:17 161:22

164:7,9 169:14

174:24 175:10

185:16 193:15

195:12

background

136:7 159:19

backs 107:16

bad 85:5 90:23

106:16 139:10

188:6,7

balance 182:20

182:21 185:19

balances 180:3

182:11,23

184:13

Ball 61:13,14

ballpark 54:15

bank 30:6 93:3

93:18 96:21

168:11

bankrupt 111:4

163:15

bankruptcy

109:12,13,23

111:17,22

112:3,14,15,21

116:9 165:16

base 78:17

baseball 194:19

based 59:15,16

59:19 138:1

160:11 179:20

194:17 201:1

basis 31:12

59:12,14

123:11 175:3

bathroom

100:16

battles 160:23

Bberman@fo...

2:10

beard 158:16

began 51:18

beginning 1:19

behalf 1:6 14:14

32:8 40:5

121:7 134:20

135:7 136:9

152:7

behaved 94:16

belief 204:6

believe 54:5

67:3 82:16

110:14 129:5

130:3 143:10

144:2

believer 93:10

benefit 93:7,8,11

93:13 111:2

162:22 188:10

BERMAN 2:8

7:10 12:1

13:11,17,21

14:7 15:3,10

15:24 16:19,22

17:3,6,16,23

18:10,18,21

19:1,6,8,17,23

20:4 21:7

23:10 24:6

25:14 26:17

27:10 28:17,23

29:3,11,22

34:23 35:21

36:11 37:6

38:10 40:10

41:23 42:11

46:23 48:19

51:20 55:18

56:21 59:3,10

59:14,22 60:1

65:8,12 67:5

68:3,24 70:4,7

71:1,16 76:23

78:5,9,21

83:10 84:10,20

85:1 86:13

88:2,7,12,16

88:20 91:3

98:17,24 100:2

100:15 109:15

109:17,20

110:5 112:22

113:16,23

114:21 115:16

118:1,23

119:18 121:10

124:6,10,20

125:20 126:3

126:12,17

127:7,13,21

130:10,17,20

131:6,9,23

132:16,24

133:4 134:6,24

144:15 149:17

153:3 154:21

155:1,6,11,17

155:22 160:6

160:17,20

169:20,24

172:15,22

177:18 178:10

181:14,23

186:4 188:18

190:13 193:9

196:1 200:17

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 207 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 208

201:5,12

best 64:24 90:4

204:5

bet 157:22

169:11

better 94:17

101:20 151:15

bi-weekly 37:24

58:10

big 30:5 43:5

147:4,6 188:1

bigger 199:2

Bill 64:8 72:12

bit 75:14 84:7

116:19 131:12

Blake 101:17

Bloomberg

139:6,7

boil 172:19

borrower 27:9

89:16 93:7,8

112:9,21

114:10 141:20

143:19,19

144:13,24

152:8,12,13

191:15

borrowers 9:4,6

28:5 121:24

127:2,6 142:18

152:7 153:6

154:1 193:8

bother 200:10

bottom 158:15

161:9

box 27:3 73:5,15

90:20,21

Bradstreet 95:4

Brastreete 95:12

Brawn 149:10

break 68:5

75:12,14

100:15 157:21

158:1

breakdown

187:24

breaks 8:21

Brett 2:8 13:19

16:11

bridge 31:7

brilliant 44:8,19

bring 10:20 11:7

11:18 24:12

25:3 53:18

58:1 69:21

70:3 79:19

96:24 147:21

154:18 157:6

159:18

bringing 83:24

84:2 141:1

broad 12:11

Broadway 53:13

broker 9:8,13

10:2 44:2,6

53:1,3 80:21

80:24 150:21

brokers 52:23

Bromely's 64:20

Bromley 64:8,10

64:12 72:12

102:12

brother 134:1,3

134:9,22

brother's 135:3

brought 11:21

36:5 141:19

156:17 159:15

169:4 173:6

181:15,23

Bud 164:16

build 36:21,22

bunch 101:7,12

101:13

business 1:9 6:5

6:6,22 7:2,6

9:15,15 10:17

10:18,20,23

11:7,18,23

21:5 34:16,18

36:5,5,8,9

37:12 38:4

40:16 41:2,6

42:15 43:22,22

44:10,20,21

46:4,6 47:20

56:3,8,11

60:21,24 64:6

64:21 67:22

71:10 74:12

75:2 76:10,16

76:22 77:4

78:4 79:2,3

80:15 85:13

89:5,7,8 94:16

95:8,10,19,24

96:4 97:9,13

97:23 103:24

104:4 105:1,5

107:22 113:15

114:16 115:6,7

115:22 116:8,8

118:22 119:9

119:17 121:7

121:19 122:5

122:18 123:10

123:21 134:14

135:3 137:13

138:8,14

139:20,22

140:24 142:11

145:8,9,14

147:5,24

149:15 150:1,7

150:12 151:8

154:16 161:10

162:11,12

163:3 165:24

170:19,23

173:18 174:6

175:7 187:5

196:11 197:24

198:18 199:13

199:17

businesses 8:4

12:6 26:20

40:15 50:22

51:18 53:20

55:10 76:13

94:9 103:4

113:21 120:17

120:19 138:2,5

139:15,18

151:23 179:23

180:8 198:4,17

199:20

busy 147:1,2

buying 168:4,6

C

C 202:1,1

calculate 184:19

184:24 185:10

185:11,20,23

calculator 3:13

169:17 172:21

call 10:14 17:24

18:7,18,21,22

19:1,3,12,12

19:21 20:4

23:19 36:22

59:22 118:14

121:3 127:16

130:12,18,20

131:1,6 141:22

157:23 160:21

200:23 201:10

called 6:12

60:11 61:1

94:15 101:8

107:3 194:10

calling 18:23

75:7

calls 125:21

141:24

capable 150:10

capacity 34:15

38:1 50:16,20

52:24 60:17

63:17,19 149:5

150:2

capital 8:12 37:1

51:9 60:17

77:16 163:2,6

165:19 175:17

188:6 191:2,8

192:11,17

car 115:8,9

card 34:16

cards 34:18

care 87:3,4

careful 168:1

carefully 203:2

case 15:16 27:8

81:3 105:15

133:17 134:10

143:4 160:22

163:16 191:5

cases 94:24

cash 22:1 23:15

24:2,14 25:8

26:10 27:4

89:2 96:8 97:6

99:4 108:17

151:19 162:8

162:14,17

168:9 174:19

174:23 175:8,9

183:24 184:2

186:20 199:3

catching 136:15

CBSG 6:4,7

7:20 8:9 9:12

20:12 21:3,5

21:16,19,21

22:5,14,22

23:9 24:4,12

25:2,7 26:11

26:16 27:19

28:11 29:20

31:11,17 32:1

32:9,11 33:8

33:11,15,19

34:3,9,11,13

34:17,21 35:10

35:20 36:10,15

36:16,19 37:1

37:5,17 38:9

38:16,20 39:7

40:3,21 41:6

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 208 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 209

41:20 42:19,22

43:1,3,5,9,12

43:17 47:23

48:1,2,3,5,5,11

48:13,21 49:15

49:22 50:11,15

50:17,18 51:4

51:19 52:5,7

52:12,15,18

53:19,22 54:2

54:7,10,14,18

55:2,4 56:1,12

56:13,14,18,23

57:10,14,18

58:1,6 59:8

60:16 61:18,21

62:4,8 63:19

64:3,10,13

65:1,6,14,19

66:2,5,10,11

66:19,21 67:4

67:20 68:1,7,9

68:11,13,16,19

68:21 69:2,5,8

69:11,17,21

70:3,24 72:4,6

72:8 75:17,20

76:8,17 77:3,6

77:13 78:3,20

79:3,3,7,10,19

79:22 80:4

81:3,4,7,15,18

81:24 82:8,11

82:14,24 83:2

83:4,7,12,24

85:10,24 86:7

86:11,23 87:4

89:20 90:1,24

91:22 92:1,23

93:16,21 94:20

95:1,20,23

97:13,13 98:22

99:4,16,24

100:7 101:1,2

101:13 102:4

104:16 105:1,4

105:21,23

107:21 109:3

110:19,23

111:14,17

112:4,7,12,19

113:3,14,21

114:7,9 115:13

115:14,22,23

116:6 117:18

118:19 119:5,5

119:12 120:11

121:7,22

122:10,17

127:1,1,5,6,11

127:19 128:1,8

128:10,18

129:3,7,9,12

129:16,19

130:9,16 134:2

134:17,20

135:14 136:9

137:5,15,16,19

140:3,10,21

141:13,19

142:23 144:6

144:10,12

145:3,6,10,13

145:16,22

146:6,18,19

147:11 148:6

150:7 152:6,11

152:16 153:5

153:13 154:1

159:8 160:4

164:2,4 165:1

166:3,9,18,23

167:3,13 170:2

171:1 172:3

173:13 186:2

189:3,22 190:7

191:15,20

192:1,20

194:23 196:18

196:19 197:1,3

197:8,12 198:5

198:17 199:7

199:13 200:12

CBSG's 32:19

54:8,21 55:16

63:9,15 90:3,5

90:11 92:14

96:18 106:2,5

107:17 109:6

109:11,24

110:3 115:5

117:5 128:14

128:21,24

129:23 192:8

193:7,21

195:23 196:9

199:17

cert 29:5

certain 91:15

93:17 186:3

190:9

certification 5:9

15:4,11 28:24

130:24 202:19

certifications

15:15

certify 202:5

certifying

202:23

CFO 63:15,18

63:24

CFO's 195:10

challenging 94:9

change 85:13

91:9 203:6,7

203:10 205:2

changed 75:9

98:2 99:15

160:18 195:23

196:10

changes 85:12

98:10 203:4,14

charge 128:10

128:15 142:23

191:3 192:15

192:18,21

charged 143:9

143:12 184:20

187:5 191:7

192:7

charges 144:10

190:23

charging 165:20

169:5

choices 168:21

choose 120:7

Christmas

171:21,23

circle 123:9

Circuit 124:24

circumstance

145:21

circumstances

21:20 58:16

city 56:7 147:4

CIVIL 1:4

claim 16:18

19:16

claimants 15:18

claims 17:8,12

112:19 180:15

clarify 18:3 26:5

46:8 69:13

117:10 122:21

clarity 16:1

28:18 44:12

181:16 200:17

class 15:4,10,15

28:24 29:5

59:15 130:24

class-wide 16:4

classify 73:11

claw 107:3,11,13

107:16 141:8

clean 13:8 72:24

cleaning 73:6

clear 13:2 29:4

64:23 89:24

140:15 175:2

clerk 200:22

client 9:1 15:20

26:23 27:15

29:8 30:7,10

31:8 34:7

37:20 53:3

76:3 79:15

80:20,24 81:10

86:4 102:23

103:16 104:6,9

105:15,20

106:20 107:1

110:18,22

118:17 125:1,6

140:1 141:9

143:2 144:19

159:20 161:21

162:7,9,19

163:5,14

165:22 166:10

168:18 169:3,3

170:3,3,12,13

170:18,19,22

170:24 171:5,8

171:13,19,22

172:1,3,4,10

172:12 173:11

173:17 174:1,3

174:5,8,12,20

175:6,12,23

176:3 177:8,11

178:1,7,15,22

179:9 180:1,11

180:16,22

181:2,11,17,22

182:3,10,15

184:11,20

186:7,9 188:13

191:1,2 192:10

193:1 195:17

198:11,21,22

199:1,8,10,21

client's 76:7

108:21 143:4

144:12 170:18

clients 8:21

10:15 12:15

25:17 26:14

30:1,4,16,17

30:18 31:12

35:4 49:10

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 209 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 210

76:16 82:6

89:1 94:2

95:13 102:24

103:2,3 104:5

105:11 110:10

111:21,24

112:2 113:12

120:6 136:12

136:13,20

138:17,20

139:12,16,17

140:4 145:20

147:21 151:23

169:8 175:1,4

175:17 177:5

179:21 185:8

187:21 188:3

192:15

close 39:18 62:2

65:7,11 130:19

closed 50:13

200:19

closer 196:19,20

closurey 26:4

co-call 10:15

coffee 62:24,24

102:11

cognizant 13:16

COJ's 98:4,8,9

98:11

Cole 63:22,24

64:3 72:10

102:7 189:7

collateral

114:11 116:14

116:15,16,23

117:1,3,4,7,11

117:14,15,21

collateralized

113:10

collect 112:13

134:19

collectability

119:6

collection 108:3

141:5

collections 105:6

105:9,13,16

112:8,11

140:18,20

141:1,2

College 194:19

column 203:6

come 17:10

51:17 52:18

63:1 94:8

106:18 139:23

142:19,22

151:3 168:17

169:1 183:18

comes 52:7

199:17

comfort 35:5

comfortable

163:17,17

coming 30:5,11

174:9 184:7

199:1

commenced 6:4

116:7

commercial

116:21

commission

22:3,5 101:1

107:8 141:7

204:17

commissions

22:20 106:24

107:1,5,18

common 86:10

86:15,17,22

92:22 95:23

96:17 97:12

103:5 109:2

112:20 113:15

142:17 164:24

188:24

communicated

90:15

communicatio...

127:15 130:4,7

130:23

companies 6:17

8:13 20:24

52:10 53:17

68:22 89:3

91:19 95:6,11

98:6 99:15

107:15 144:3

148:22 149:4

150:17,19

175:9 176:8

177:4 179:14

179:14 182:12

182:18 183:24

184:3,3 185:1

188:7

company 6:11

6:22 7:2,16 8:7

9:18 12:21

13:1 14:6

20:11 21:24

31:19,20 32:6

34:14,22 39:2

39:5 40:13

41:16 42:2,10

44:6 46:9,11

46:15,22 47:4

47:5,10,13

48:17,23 53:7

60:9,16 61:7

64:15 79:23

81:8 87:2,3

91:13 96:9

101:20 104:2

108:18 114:24

118:4 132:14

134:23 135:22

149:16 150:5

151:8 165:16

168:20 169:13

176:16 185:13

187:14,14

188:8 189:15

195:10

company's

148:10

compel 200:13

compensated

137:22

compensation

21:3 101:13

competent

203:20

complain 138:9

complained

138:15

complete 1:9 6:5

6:22 7:6

169:16,18

completely

141:11 174:4

compliance

99:22

composition

111:6

compound

36:12 68:3

78:22

computer 78:15

concept 106:10

146:17 151:1

170:2

concern 162:21

conditions 20:23

99:13

conduct 17:7

conducted 16:5

16:7

conference 16:6

confuse 65:16

confused 40:23

65:15 128:3

confusing 141:3

conservative

168:6

consider 24:20

consist 24:23

consisted 162:17

consolidated

169:7 171:1

consolidation

3:13 23:17

37:22 161:14

169:17 172:20

175:10 176:1

constantly 99:19

99:20

constitute 108:9

108:16,18

constitutes

115:11

consult 14:3

consultant 15:9

32:3 38:1

consulting 6:11

6:17 7:5,15 8:3

10:7 11:4,16

12:7,9 13:24

23:1 34:15

39:8 50:9,20

64:13 135:13

contact 105:18

105:19,19

112:16 119:20

120:4 136:20

137:9,14,14,16

142:18

contacted 39:8

120:7 136:16

138:14

contacting

139:22

contained 202:7

continue 41:8

contract 99:7,9

99:12 108:7

110:6,8,11,18

111:14 120:16

148:2,4,10

178:17,21

179:3,8 180:13

180:20,24

181:9,11 185:6

193:7,21

195:23 196:10

contracts 54:2

80:7,11 99:15

99:21 104:15

109:24 110:3

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 210 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 211

118:5,7,10

179:13,19,20

180:11 181:7

181:13 183:9

184:16 185:6

control 202:22

controllers

55:13

contrude 7:20

conversation

36:7 92:10

124:17 125:1,7

125:10

conversations

92:12

convicted

131:17 132:4,8

132:15,19

133:2,6,14,16

150:3

conviction

132:10

copies 122:4

177:9

core 91:2

corporate 84:14

123:21

corporation

46:7

corporations

84:13

correct 10:22

14:3 18:20

27:20 41:7

50:7 68:2 77:9

79:11 82:9,10

98:22 140:12

142:1 146:9

155:16 170:7

173:7 175:21

177:2 178:3,4

202:10 204:5

correctly 26:9

39:17 48:15

169:16

cost 191:7

coulda 77:18

counsel 5:4,7

15:19 125:5

153:1 191:19

191:24 192:4

195:5

counsel's 146:3

country 10:10

couple 102:8

160:1 174:21

course 28:3 61:5

124:22 126:21

128:16 138:12

145:2 162:10

162:11 168:20

170:15 171:15

174:9 176:6

court 1:1,20 5:2

13:6 16:3,8,11

17:1,6,9,19

18:15,15 19:10

37:15 40:17

59:18,23 88:17

127:16 130:13

130:18 131:1,7

157:24 158:6

159:2 161:3

172:24 182:6

193:14 200:14

202:16 203:24

Court's 19:20

200:22

cover 191:7

CPA's 55:13

create 18:13

creative 169:1

credit 12:10

23:1,17,19,20

24:3 86:19

87:13,15,18,23

87:24 88:23

91:20 92:20

96:19 119:15

121:15 153:7

153:14

creditor 120:4

creditors 111:2

credits 87:7

cried 171:22

crime 131:17

132:4,8,19,22

133:9

criteria 32:6

cubical 63:12

cumbersome

120:2 188:2

current 39:22

63:24 106:3

142:12

currently 6:2,10

33:23 42:21

54:14 66:22

74:1 109:7

129:3

customer 32:7

80:13 93:12,14

162:23,23,24

165:11,12,23

171:19 195:4

196:14,15,23

199:24

customers 137:5

138:9 146:7

161:13 168:16

188:11 194:23

194:24 195:14

197:17 198:21

customize 35:9

cutting 13:12

D

D 3:1 100:23

d/b/a 1:10 48:6

48:11

dailies 198:24

daily 27:23 28:6

28:11 29:21

30:1,2,4,21

71:9 97:3

102:19 123:11

143:6 162:20

163:1,11,21

165:13,20,21

167:14,16

171:14 172:14

182:11 183:17

185:18 191:10

Dallas 147:4,5

dare 19:2

data 28:8,13

77:15 78:17

date 81:16,21

203:11

day 15:13 75:7

114:18 121:3

123:14 162:8

165:13,22

167:21 168:19

168:24 169:4,5

184:8 186:14

201:7

day-to-day

47:16

days 104:4,8

121:2 160:1

162:3 164:20

165:14 167:22

204:1

deal 8:24 9:2

22:6 27:6

31:13,15,16,21

32:6,7 35:11

53:24 60:19

77:12,16 79:10

79:18,21 80:13

81:7 82:6 93:3

93:15 95:13

101:14 102:22

103:1 104:10

114:11 116:14

116:18,22

117:15 121:5

140:10 143:13

147:9,20

148:21 150:7

163:18 168:8

171:24 186:7

186:16 194:23

195:16 200:14

dealing 42:9

119:4

dealings 134:2

deals 8:17 10:9

10:11,12,13,14

24:12,17 25:2

25:7,11 27:19

28:10,19 29:1

29:20 30:14,15

30:19 31:10,17

31:20 32:5

49:9 52:4,6,11

52:18 53:18

69:17,20,23

70:2,3,24

75:20 76:21,21

77:3 78:3,15

78:19 81:15,18

82:23 85:10,14

87:10 89:20

94:3 95:20

97:12 98:13,14

103:8 104:5

107:7 117:18

119:13 120:16

122:17 140:3

140:21 141:13

141:14,18

142:17 146:21

151:21 163:12

166:9

dealt 51:19

120:20

Dean 194:2

debate 188:1

debt 88:24 89:4

89:15 90:9

153:8 161:10

161:15,18,19

168:11 169:8

169:10,12,15

169:19 170:4,7

170:9,10,13,18

175:2 198:15

debtor 119:16

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 211 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 212

debtors 119:21

debts 110:24

111:7

December 1:18

174:2,11 199:1

decent 163:9

decide 149:14

decided 151:7

174:17

decision 91:20

94:19

decisions 119:11

Deck 8:12 51:5

77:16

declaring

109:13

declined 69:12

deem 90:2

107:21

default 96:7

98:15 104:16

104:20,23

105:2,5,24

106:3,5,14,18

107:21,24

108:1,9,17,19

108:22 109:4,8

109:14,24

110:22 111:18

114:20 115:2,4

115:11,15,24

136:15,18,19

139:14,23

141:19 142:19

143:20 144:7

144:13 145:1

152:1,2,8,9,13

152:14,17,21

195:22

defaulted 89:9

106:20 107:1

Defaults 110:4

110:12

Defendant 1:12

2:6,11

definitely 97:2

delete 73:8,17

73:18,20 74:4

122:24 123:17

deleted 123:10

126:16,19

deletes 73:10,12

deleting 72:22

123:3,14

124:19

department

32:12,15,19

82:3 105:7,9

depending

96:23 120:12

120:13

depends 31:1,2

79:14,15,16

93:23 104:2,3

104:3 117:9

140:8 143:1

144:16,18

195:20

depicted 158:15

depose 44:16

deposed 18:6

19:24

deposing 15:13

203:22

deposition 1:14

110:18 125:3

131:2 146:11

160:13 200:18

201:15 203:2,3

203:12,16

204:1,4

depositions

200:15

deposits 31:2

96:23 97:2

171:20,21

173:16,21,24

174:2 198:24

derive 140:22

DESCRIPTI...

3:8

designed 30:23

detail 8:1

determine 77:3

105:1 106:17

122:10 133:3,7

183:22 187:8

determines

105:4

determining

167:13 198:9

developed 37:16

37:18,21,23

differ 103:19

118:5,7

difference

116:13

differences

198:3

different 8:3,11

9:13,24 10:3,9

10:16 11:24

22:14,19,20,21

23:15,16 24:2

24:3,9 26:20

26:21 27:3,13

27:13,14,15

40:14 48:24

50:24 54:3

57:20 58:6,8

58:10,11,12

77:22 81:9,13

83:3 84:4 86:7

91:9,18 95:6,6

95:11 99:16

101:8,12,14

102:24 103:1,2

103:3,16

107:15,16

113:9,11

117:22 118:5,6

118:8,9 120:11

120:12 122:19

141:5 144:3

146:21,22

166:20 184:17

198:4

differently 65:5

140:16 144:4

195:19

differs 83:22

direct 35:4

181:24 202:22

directed 15:22

directing 15:19

125:5

direction 4:2

200:22

directive 19:20

directly 119:13

138:15 140:10

140:12 174:20

director 33:20

34:3,8,10,12

34:13,17,21

35:19 36:10,15

43:9 45:12,19

68:1,9

directors 39:5

47:10

disagree 201:6

disagreeing

131:14

disconnect 26:7

85:9

discoverable

125:4

discovery 15:17

16:4,7,16 17:8

17:11,11,21

19:11 28:24

59:17,19

200:12

discrepency

55:21

discussed

152:24 184:1

dishonesty

132:5,22 133:9

disingenuous

16:8 17:2

dispute 131:3

137:10

disputes 136:11

DISTRICT 1:1

1:2

divide 178:24

division 58:2

docs 197:2

document 92:11

100:23 159:7

159:11 177:16

181:15,16,21

182:2,2,16

183:3 190:17

190:19,21

documents 4:8

27:5,14 54:18

77:11 79:22

80:6,7 86:2

91:1 97:20,22

110:16 126:9

154:9 155:2,5

155:16 156:9

156:10,15,17

156:23 157:1,6

157:12 159:14

159:17,23

160:2,12,21,22

173:6 195:11

196:15

doing 6:6 29:4

81:23 85:5

94:3 145:8,9

149:7 175:13

184:21

doors 174:15

186:15

duly 5:15

Dunn 95:4,12

E

E 3:1,6 202:1

ear 124:9,11

earlier 32:4

120:22 122:22

145:24 162:22

earmarked

189:23 190:1

easier 75:5,5

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 212 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 213

EASTERN 1:2

eaten 199:4

educating 92:14

effect 94:8

effort 141:6

eight 37:12,14

91:8 92:15

either 7:6

119:12

elaborate 198:8

email 71:6,9,12

72:7,10,12,13

72:13 73:15,20

74:6 123:22

130:4,7 131:5

154:23 155:12

emailed 71:24

72:3 73:23

emails 70:22

71:20 72:17,19

72:22 73:1,9

73:10,12,24

123:1,1,3,10

123:13,14

124:19 125:13

125:18 126:13

embarrass

131:16

employed 6:10

6:21 7:1 14:5

34:22

employee 15:8

42:22,24 68:11

employees 46:19

56:1 61:10,18

68:19 82:7

employment

13:24

encourages 17:9

ended 201:15

enjoyed 138:20

139:13

ensuring 196:14

entered 170:2

entire 70:9

108:6

entitled 22:2

133:5 155:20

200:12

entity 60:14

100:1

erase 124:1

errata 203:6,9

203:11,15,21

205:1

escalated 184:4

especially 38:3

105:14 111:15

ESQUIRE 2:3,4

2:8

essential 104:13

establish 66:4

88:24 89:9

93:13

established

67:17

establishing

87:5

estate 114:1,3,6

132:11,13

estimated 15:2

event 58:15

98:15 109:13

109:23 110:21

111:18

events 110:3,12

160:4

everybody 86:16

151:16 195:19

everyday 45:12

evidence 133:10

133:12,13

202:6

exact 37:19

81:21 112:10

112:11 137:2

183:10,13

exactly 41:11

133:14 169:9

181:12 190:24

EXAMINATI...

3:4 5:18

examined 5:15

example 86:18

91:12

examples 58:21

Excellent 81:14

exchange 70:22

101:1

exclusive 31:24

excused 201:15

execute 97:13

191:15

executing 98:14

exhibit 192:20

exhibit-5 174:16

exhibits 177:11

existence 82:22

existing 118:20

176:4

expect 40:5

expected 71:21

expects 145:4,7

145:14

expensive

187:23 188:2

Experian 87:17

87:23

experience 28:9

29:19 43:23

89:18 90:1

95:22 104:1

107:6,20

111:16 115:21

119:4 148:18

148:20 150:21

166:3 196:8

Expires 204:17

explain 9:22

10:3,4 58:12

83:20

explained 47:5

49:7

explore 170:1

exploring 133:2

exposed 149:22

expressly 138:16

extent 44:14

54:22 125:21

F

F 202:1

faceplate 181:8

181:11

facilitate 27:6

92:9

facility 55:14

56:6 153:14

fact 15:14 40:19

50:13 66:4

87:5 121:14

126:12 133:8

138:20 139:1

139:13 166:12

factor 104:6

120:1,10

128:19,22

164:21,23,24

165:2,3,4,5

166:2,4,8,11

166:20,22

167:5 171:15

171:16 172:11

185:10,11,13

185:17,20

factoring 3:10

23:16 24:3,18

157:3,9 159:7

187:12

factors 76:1

120:3

failing 89:3

failure 114:16

114:19,23

fair 7:24 9:4

22:16 144:6,22

198:10

fairly 166:4

familiar 14:21

53:7 54:7

69:19,22

112:18 128:24

familiarity

90:18

far 79:4 90:19

91:16,16,17

95:2,9 99:16

105:17

fast 3:14 53:8,10

53:22 85:12

February 174:9

174:10,12

fee 142:24 143:9

143:12 144:10

191:4,4 192:7

192:12,15,18

192:21

feel 30:24 94:17

fees 143:24

190:23

fell 165:11

felon 150:3

fend 149:23

fifteen 84:20

fight 201:7

fights 160:23

figure 78:3

168:7 185:2,7

185:22 186:1

figured 92:7

file 14:22 55:22

75:22 84:5,19

85:15,16,23

93:6 94:23

113:13,14

157:5 159:19

160:16 162:9

163:24 166:7

166:16 168:2

177:13 181:23

183:9 185:15

195:18

filed 42:5 95:9

100:24 111:22

112:2 116:9

files 60:15 69:3

83:3,4 86:11

86:24 87:1

90:19 106:12

112:19,21

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 213 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 214

121:21 122:6

126:21 165:12

167:19 169:22

filing 5:9 101:2

109:12,23

111:17 203:16

203:24

filings 96:5

filled 182:3

184:11

finance 142:24

143:9,12

144:10 174:13

190:23 191:4

192:21

finances 21:24

financial 9:16

21:12,16 23:9

43:24 46:3,15

54:18 92:24

93:2 101:20

173:10,15

financing 25:18

153:8 163:23

199:5

find 11:19 133:2

175:1

finding 10:24

fine 55:7 88:6

140:17 154:6

155:19 194:1

finger 188:4

finish 13:6 57:7

finished 170:6

fintech 48:22

60:15

Fiora 194:18

fired 68:18

firm 6:1 93:9

first 5:15 23:4

40:20 55:20

128:2 136:3

150:24 156:6

161:9 175:5

fit 27:3

fits 32:6

five 138:24

162:17 179:14

179:22 180:8

182:12 198:24

fixed 103:9,11

103:14,18,21

104:11

flee 171:10

Fleetwood 1:4,5

1:5 3:12,15

37:20 84:22

85:6,19 142:1

142:4,8 159:8

160:5 161:17

164:3,4,6,8,14

167:14,18

184:2 190:17

193:2

Fleetwood's

19:16 154:16

167:16

Fleetwoods

16:17

Floor 2:9,9

Floria 62:8

Florida 56:13

60:9,13 62:11

62:13,15,19

63:3,8

flow 199:3

focus 12:17

folder 154:17

155:15 156:9

156:10,12

157:15 159:24

following 203:9

follows 5:16

footnote 16:10

16:14,20,21,22

16:24

force 48:14

foregoing 202:9

202:19 204:3

Foreign 3:9

form 5:11 11:22

21:24 23:22

25:12,16 26:10

26:13 27:17,21

27:22,22 49:22

68:15 88:5,14

98:22 99:3,6

99:11 100:23

102:17,18

106:21,23

109:11 114:5

117:19 120:16

130:1 148:1,7

196:9 203:4,7

formal 58:15

59:1

format 58:9

formation 41:20

42:1,19 47:4

50:11

formatted 8:22

45:16 46:10

47:6 84:13

150:1

formed 46:7

49:14,15,16

50:1,15,17

148:3

forms 24:2,9

98:14 114:3

120:11,13

formula 22:4

198:9,13,19

formulate 42:2

150:12

formulated

43:22

forth 42:10

89:11 195:13

forward 81:2

94:6,13

Foundation 88:3

founded 38:9

40:21 41:12

43:1

founder 36:19

36:22 40:18

founders 40:2

40:13

four 97:1 108:10

108:22 109:4,8

FOX 2:8

frame 120:24

fraud 132:8,12

181:18

free 161:10,15

161:18,19

163:23 169:10

169:13,15

171:5,6,7,11

171:13 175:1

frequency 31:3

96:23

fresh 165:19

172:11,12

Fridays 30:12

front 37:20

155:16 156:10

157:10 160:9

203:17

fulfilling 197:13

full 60:12,19

61:2,3,6,11

67:18,19 69:9

69:16,19 70:1

70:20,23 71:13

72:1 75:20

81:5,14,17,21

81:24 82:8,12

82:15,18,22

83:3,18 84:3

85:24 86:8,12

86:24 87:4

119:14 131:20

135:24 196:24

197:4,7

fully 202:7

function 197:13

fund 8:17 91:13

121:5 185:12

188:21,23,24

funded 22:7

25:11 26:15

28:10 53:24

54:11 77:4

78:3 81:7

97:12 122:17

175:6

funder 48:2

53:16

funding 1:11

3:14,15 6:6 7:3

7:7,21 8:13

10:18 11:8,19

11:22 12:4

20:13 21:23

23:1,14,22

24:14 25:6

26:3 35:11,12

36:17 41:4

48:4,5,6,12

49:11 53:19

54:8 60:8,22

61:22 76:8

96:12 122:10

129:6 140:21

165:15 166:1

188:8 190:18

funds 31:11

52:18 79:3

108:15 113:22

141:14 145:4,7

145:13 153:6

153:17 175:11

188:14 189:4

further 200:8

future 118:21,24

120:8 151:12

177:5 178:2,6

178:15 179:5,6

186:21 200:15

G

general 12:9

55:4,8 111:1

139:2 145:12

generally 20:22

28:21 37:18

110:6 120:23

144:21 147:3

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 214 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 215

generated 68:16

79:22 173:12

gentleman

135:21 149:10

Geo 135:18

136:17 137:5,9

137:12 138:4

138:10,15

141:2

getting 89:4

98:6,11 138:2

139:19 174:1

199:4

give 48:23 58:21

97:3 107:18

170:19 175:3

183:10 186:15

given 59:1 204:4

gives 35:5

185:14

giving 25:2

175:16

go 17:4 35:14,15

62:18,24 63:2

63:9 70:8

73:15 76:4

77:2 78:2 85:2

85:8 88:19

90:19 93:21

94:15 104:4,7

122:8 123:3

136:11,13,17

136:20,24

140:12 157:4

168:9 184:20

goes 8:23,24

13:13 49:11

62:23 91:16

99:17 141:19

going 13:9 15:21

24:13 25:1

28:21 30:20

32:21,23 33:5

37:13 38:12

40:4 44:13

59:3,11 60:3

71:17 73:6

75:13 81:11

91:7,12 96:24

114:12 115:9

118:8,9 134:11

137:12 139:11

140:23 141:3

141:12 143:2

143:13 145:15

145:17 148:1

154:11,22

157:4 163:9

166:15 169:19

174:5 179:4

183:12 185:12

186:11 190:8

192:10 194:20

golf 162:10,11

168:20 173:17

173:19 174:9

good 5:21,23,24

30:18 35:6,7

35:16 38:3

41:14 44:22,22

44:23,24,24

45:1 49:6

75:15 78:14

84:24 85:16,18

89:4 90:22

94:3 98:2,5

119:11 133:22

145:11 147:1

152:5 159:21

168:10 173:18

173:20 186:7

186:16 195:16

goods 184:3

governmental

99:24

graduate 44:7

graphic 91:17

great 30:13 85:1

136:12,22

139:12 150:12

171:24,24

188:9

gross 173:16

Group 1:10 6:5

6:23 7:7

grow 151:23

175:7

guarantee 97:19

97:24 186:2

guess 36:20

38:12 74:2,5

108:3 112:12

116:12 145:12

151:14 183:10

guessing 22:18

guidance 20:7

200:15

guideline 90:10

guidelines 70:9

70:15,19 75:17

90:4,6,11,13

90:15 91:2,8

92:1,18 98:2

104:24 117:6

152:4

guy 73:4,7,8,9

73:12

guys 8:14 43:6

44:8,11 60:12

66:18 111:10

112:18 139:11

145:19 152:21

154:8 159:21

168:22 186:10

187:24 188:3

189:8

H

H 3:6

half 137:3

hall 124:18

handle 34:12

116:11 140:5,7

144:3

handles 60:21

196:22,24

Handwritten

3:11

happen 179:5,6

happened 116:4

125:2 143:8

196:5

happens 96:12

145:15 156:6

happy 18:2 85:6

harassing 18:1

19:6

hard 44:18

146:2 165:11

Hartley 191:22

hear 57:6 99:18

117:13

heard 19:8

64:17 108:13

140:16

held 1:15

help 35:15 36:20

36:22 38:6

49:13 97:9,11

105:11,20,22

143:6 151:23

161:21 162:18

171:23

helped 150:11

163:7

helpful 35:3,3

37:23

helping 105:17

Heskin 2:4

16:12 29:2

44:14 59:12,20

59:24 60:7

73:23 126:15

131:8 134:4

152:23 157:23

201:3,8

high 146:18

higher 166:12

167:24

hinder 89:11

hindsight 139:9

hired 68:18

historically

162:12

History 3:15

190:18

hold 40:23 126:2

126:7

holdback

167:23 168:2

holders 38:22

Holdings 101:15

home 150:8

hope 95:21

Hour 84:20

hours 34:4 85:4

hundred 125:3

157:11,14

178:9

hypothetical

36:13

I

idea 42:20 46:21

89:4 106:2

151:3 158:17

158:21 189:2

identification

158:7 159:3

161:4 173:2

182:7

imagine 89:7

108:5 122:1

190:2,4

immediately

17:21

implicitly

138:16

important 30:19

52:21 75:3,22

88:1,24 89:6,8

89:14,19 94:1

94:23 95:7

96:4,6,9,16,20

96:20,22 97:7

97:10 113:8

119:8 195:16

importantly

165:9

imposed 143:24

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 215 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 216

impound 115:9

in-house 23:19

191:19,24

192:3

inability 110:24

inappropriate

35:2

incapable 44:9

inches 157:16

incident 132:11

including 92:22

income 88:24

89:15 90:9

167:17 168:9

168:11,14

170:21,22

198:15

incorporated

6:6 62:8 81:22

101:18

incorrect 49:23

181:19 184:9

incorrectly 47:3

67:13 72:18

184:11

increase 165:21

171:14

independent

9:14,20 10:17

14:2 40:16,19

41:9,15 49:1

53:11,15 54:3

79:16 100:7

147:14

INDEX 4:1

indicates 158:19

individual 15:13

17:8,12 78:19

121:23 122:9

158:15,16,23

Individually 1:6

individuals 25:3

26:9 32:18

38:15 61:17

71:13 102:3

122:11 193:24

industry 8:11,14

40:21 41:3,17

53:5 86:16

87:7 90:4

91:16 96:15

107:3 146:20

148:19 165:3

168:17

information

8:21 84:15

125:22 159:20

173:14 184:9

184:21 185:4

185:18,21

initial 148:7

195:6

initiate 143:2

initiated 165:3

injected 163:2

inner 8:8,10

insinuate 44:8

insolvent 111:5

instance 54:11

54:21 80:23

112:1 115:12

115:21 116:3

119:4 143:5

176:10 195:3

196:8

instances 73:22

112:6 138:14

instituted 111:3

instruct 59:4,11

instructed

124:13 125:17

126:8 127:14

130:21 131:2

instructing

134:4

instruction

126:4

INSTRUCTI...

203:1

insulting 150:11

intelligent 94:18

149:24

intended 175:18

interact 194:6

interacting

58:23 196:14

interaction

194:3

interactions

58:22

interchangable

24:21

interchangably

48:9

interchangeably

24:13

interest 13:3

33:7,11 82:15

82:18 118:21

127:12,20

128:4,10,15

187:4

intermediary

49:1

internal 54:18

84:15

internally 82:7

interrogatories

59:16

invest 36:24

189:17

invested 42:17

investment

153:11,16

investments

153:9

investor 33:18

33:18 56:18,18

59:8,8,19

127:1,5,5,11

127:11,14

130:23 189:16

189:21 190:7

investors 6:7

57:15,18,20

58:1 59:2

102:4 130:5,9

130:12,15,16

152:18 153:24

186:3,5 188:16

200:10,13

invests 189:22

involve 132:12

involved 25:7

31:11 41:19

42:8 43:19

46:14 76:6,22

101:4 102:2

105:16 111:20

122:17 137:9

139:21 140:17

141:14 142:18

148:2,13 150:2

150:6 180:5,7

194:1,12,14

195:1 197:4

200:9

involvement

41:22 47:20

140:11,22

149:3 150:16

150:18

involves 31:17

131:18 132:4,8

132:21 133:9

involving 29:20

120:16

Irrelevant 15:10

ISO 9:17,23

10:1,3,4,6,19

11:5,10 40:19

141:6 147:13

147:20 148:22

199:11,23

ISO's 9:13 32:4

53:18 147:8,11

199:14,17

ISOs 11:12,14

11:21 140:6,7

140:9 199:20

issue 15:18

109:21 199:2

200:11

issued 129:16

issues 15:14

96:14 125:14

iteration 197:19

iterations

197:16

J

jail 149:22 151:5

James 134:1

135:6,12

Jane 1:11 6:7

January 146:7

174:11 197:17

197:24

Jastrzembski

1:20 202:15

Jo 63:22,24

72:10

job 30:15 31:5,7

32:5 48:24

49:7 53:5 85:5

87:9 90:13

145:11 150:3

162:18 174:10

174:12 186:9

188:9

Joe 44:14 74:8

74:11,15 75:4

154:23

Joe's 44:7

Joemac888@a...

74:7

John 1:11 6:7

149:10

Joseph 1:14 3:3

5:14 158:20

204:10

JS 1:7

judge 16:15

17:24 18:3,7

18:18,21,23

19:1,3,12,13

19:21 20:4

44:13 130:21

131:2 200:11

201:11

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 216 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 217

judgment

136:15 139:19

Justin 2:3 5:24

K

Kathleen 1:19

202:15

keep 64:6 76:19

79:18 105:23

174:15 186:15

192:11

keeping 192:17

200:18

kept 191:2

kind 36:3 73:7

103:9 119:10

130:2 134:8

kinds 118:9

King 101:21

knew 149:19

176:3 197:12

know 7:8 8:14

14:16,17,20

15:1 16:19

20:20,21 22:18

24:11 28:10

29:18 30:20

33:4,16 35:4

35:23 36:16

37:11 38:11,17

38:19,22 39:1

39:4,14 40:7,9

40:10,11 41:11

41:13,19 42:6

42:7,7,13,14

42:17 43:4,8

43:10,13,15,20

44:5 45:13,22

46:6,9,10 47:7

47:11 54:10,13

54:24 55:4,7

55:11,17,18,19

55:20 57:13

58:19 61:12,21

62:7,9,21

63:19,22 64:1

64:4,8,14,15

64:20 65:20,24

66:6,11,24

67:7,11,12,20

67:23 70:7,16

71:6,19,22

72:5,9 73:2,11

73:13 75:19,21

76:15,18 77:20

78:1,9,10,12

78:16 80:19,22

82:5,11,17,19

82:21 83:1,5

84:1,2,9,12,14

84:15 85:9

86:3,9 87:21

90:10,12,17

92:3 93:19,20

98:13,16,18,19

99:5,23 100:6

100:9,10 101:9

102:14 104:5

104:20,21

105:4,7 106:1

106:4,5,11

107:4 108:11

108:12,20,23

109:2,5,6,9,10

109:16,18,19

110:1,15,21

111:8,10,15,19

112:10,19,24

113:1,3,18

116:2,6,10

119:9 120:4,14

120:15,22

121:1,4,22

123:12,20

124:5,14 127:8

128:4,20,21

129:6,8,9,12

129:15,19,22

131:7 132:20

132:21 133:4

133:10,11,11

133:12 134:21

135:2,9,10,11

135:12,16,17

135:18 136:1,2

136:6 137:4,18

137:21,24

138:4,23 139:2

139:10 140:20

143:1 146:1,6

146:14,16,19

147:17 148:6,9

149:12 150:9

150:23 151:7

151:11 152:6

152:11,16,20

152:21 153:5

153:13,15,16

153:22 154:3

154:13 156:13

156:21 158:11

158:18 162:2

164:22 167:3,6

167:13 177:3

178:8 179:2,4

179:5,18

180:10 183:4

186:7,18,24

187:3 188:15

188:16,20,22

188:23 189:3,6

189:7,8,9,21

190:3,6,14,16

191:12,14,21

191:22 192:5

192:23 193:18

196:2,4,6,12

197:5,14,15,22

198:2,8 199:16

199:19,22

201:9

knowing 185:1

knowledge

20:19 47:15

57:9 64:24

66:21 68:23

194:9 204:6

L

L 1:4

lack 181:15

LaForet 74:23

LaFORTE 1:15

3:3 5:14,21

135:6,13

158:20 160:16

161:8 172:2

194:22 200:7

204:10

LaForte's

200:18 201:1

landscaping

91:13

lapse 83:23

laundering

133:17

Law 6:1

laws 186:24

187:8,15

lawsuit 6:4,8

15:19 20:19

116:7 125:15

125:19 156:17

lawyer 18:7

88:21 111:8,12

148:5 164:11

192:5

lawyers 42:6,9

lay 91:11,24

lays 91:1

lead 35:15

leading 123:4,5

league 194:15

learned 38:2

lectured 18:5

ledger 55:5,8

legal 27:15

44:22 101:3

116:10 145:17

155:24 187:4

191:12,18

196:6

legally 75:8

lender 8:23,24

21:24 31:8

53:1 59:9

60:16 69:22

105:21 118:6

151:9,10

lenders 8:11,16

9:8 12:14,23

31:20,21 49:12

50:14 51:1,3

52:12 80:11

89:8 90:12,21

92:22 146:22

171:1 172:5

175:13,19,24

176:4

lending 23:23

119:11 144:3

153:14

lends 60:17

length 103:23

lengthening

165:17,18

lesson 88:20

let's 9:12 65:1

86:21 87:11

103:12 104:23

124:11 131:6

158:1 172:22

173:5 189:22

191:2

letter 126:2

level 35:6 47:13

150:6

leverage 97:8

liaison 105:13

Liberty 1:16 2:4

licensed 44:6

lie 37:15

lien 139:19

liens 89:11

113:13,14

life 133:22

light 200:8

likes 30:10

94:20

limiting 146:4

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 217 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 218

Lindsay 101:17

line 4:3,3,9,9,12

4:12 24:3

153:7,13 205:2

lines 23:17,18,20

Lisa 39:14

list 90:16 91:6

101:7,11 178:8

185:2

Listen 17:23

litigation 4:1

126:1,7

little 75:13

81:13 84:7

90:21 98:7

116:19 131:11

194:21

LLC 1:4 159:9

LLP 1:16 2:3,8

loan 129:13,16

150:20 151:13

151:15,16

186:22 187:19

loans 23:21

103:18 127:1,6

127:12,20

128:2 129:21

154:1 171:2

177:15 187:6

187:22

located 56:5,13

60:24 67:16

121:8,19

122:11 147:15

locating 12:14

location 62:5

66:23 121:23

long 6:13 39:11

39:19 47:6

49:17 50:3,4

62:4 136:24

156:5 179:11

longer 85:2

107:11 116:17

116:21 117:2

170:4 172:13

192:11,18

look 9:5 11:21

52:13 85:20

91:19 93:3

94:15 95:2,7

96:4 108:8

122:8 139:10

152:8,13 155:4

155:8,17 156:1

158:10 160:18

161:7 162:15

168:18 169:17

177:12 183:8,9

184:5,7 187:10

193:21

looked 97:5

looking 9:3 30:2

30:17 36:6

45:1 50:23

85:22 99:21

108:2 116:17

122:19 155:3

168:13 179:18

looks 176:10

191:1

losing 139:20

loss 54:21 55:2

lot 8:10 9:24

10:2 11:24

31:4 36:23

40:14 44:10,13

49:3 52:22

53:4 62:12

63:1 65:16

79:17 89:2

91:9,18 96:13

96:14 98:1,4

120:5 139:15

146:21,22

147:5 149:21

150:20 151:18

167:23 178:12

188:10 195:15

love 120:1

lower 162:20

163:10 169:2

170:20 174:14

180:3

lowered 163:1

163:18 191:5

199:5

lowering 188:9

lowers 172:14

lucky 150:1,4

M

Mac 74:9,12,15

74:18,22 75:5

main 93:11

162:21

maintained

126:14

maintaining

73:15

maintenance

162:10,11

majority 141:17

making 17:2

94:18 99:21

155:2 203:7

manage 8:20

manilla 157:15

manner 83:2

199:7,19

manually

122:19

marathon 75:13

Mariners

194:10

mark 160:24

164:16 172:22

marked 158:7

158:11 159:3,6

161:4 173:1

182:7

market 1:17 2:5

2:9 8:6 36:6

171:16 198:10

199:10

marketed 199:8

marketing 6:12

6:14,18 7:17

7:19 8:2,8,19

9:8,11 10:8,16

10:21 11:6,17

12:5,13 14:1

14:13 15:7

20:11 21:4,17

21:21 22:6,15

23:6 31:6 35:8

45:4,7,14,19

47:17 49:8,14

49:20 50:1,6

50:10,14,16,19

51:11,13,15

53:23 56:4,9

60:18 61:7

64:5 65:24

78:18 79:6

87:9 106:13

111:13 134:23

135:8

married 39:15

39:19

master 90:16

91:6

match 184:9

material 198:3

math 183:15,21

185:4

matrix 3:12

96:20

matter 50:12

145:14 166:12

202:9

maximum 187:4

MCA 88:1 89:14

98:23 105:2

113:4 114:12

114:13 115:5

115:14 116:14

116:18 117:15

117:19,23

118:3 120:16

129:20 130:1

148:3,10,19,21

149:4,15

150:16,18

151:1,8,10

177:17,20,23

187:14 188:24

189:4 197:16

198:3

McElhone 39:14

39:20 40:2

mean 7:8 10:12

12:21 31:16

36:1 42:1,2

45:10 47:23

54:19 59:20

71:7 73:7

78:15 91:8

93:1 99:5,6

104:18 106:11

126:15 140:9

147:13 156:4

176:11 189:8

189:11 197:5

199:12

meaning 102:23

184:13

means 25:10

41:13 62:22

111:9 146:1

202:21

mediate 136:14

138:21

mediator 52:24

135:22

mediators 140:6

meet 57:17,19

136:13,20,21

139:13

memorandum

153:20,23

154:4

memorandums

153:18 154:8

Memorize 92:10

memorized 92:6

memory 160:3

mentioned 96:5

100:6 174:8

merchant 12:10

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 218 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 219

24:14 25:8

26:10 94:17

96:24 97:1

99:4 110:23

112:16 140:13

140:14 151:19

merchants

10:10 35:17

38:4 75:4 94:2

96:10 106:15

111:3 151:19

merit 17:7

merits 15:15,17

16:4,7,16

17:21 19:11,16

59:16

met 57:14 136:3

micro 30:22

middle 91:14

156:16

million 167:18

mincing 84:6

mind 160:18

mine 51:23

minor 194:15

minute 85:12

minutes 84:21

mischaracteri...

51:21 65:9,12

91:4 109:21

135:1

mischaracterize

52:17

mischaracteri...

51:24

misheard 66:8

misimpression

18:13

mislead 40:17

misleading

34:20 60:10

181:4,9

mispronoucing

39:13

misrepresent

126:22

misrepresenta...

16:2 53:4

misrepresenta...

124:12

misrepresenting

152:17

missed 78:7

108:7

mistake 96:11

126:18

mitigating 75:24

mode 171:19

model 37:19,21

models 28:14

36:21,23 37:17

modified 191:3

191:10 192:8

modify 191:4

moment 12:18

money 11:1

21:22 25:3

28:6 31:11

36:7 37:4

42:18 53:19

54:10 104:11

112:8 114:20

114:24 115:13

115:22 117:6

119:16 120:5

127:2,6 133:17

138:2 145:4,7

153:6 154:1

163:9 171:5

172:11,12

175:3,16,18

179:19 188:17

189:23

monies 134:20

172:4

month 30:6 31:2

97:2 102:15

114:19 137:6

164:1 165:23

167:19,20

174:3 199:1

months 93:21

94:4,6,6,11,13

95:3 103:10,10

107:12 120:20

184:8

Morgan 101:23

morning 5:21

mortgage 44:2,6

114:6,8 150:21

mortgages 113:4

114:4

motion 29:5

200:13

move 15:23

91:15 131:12

multiple 32:15

32:17 36:11

161:18

multiply 183:12

185:13

multiplying

183:17

N

N 3:1 202:1

name 5:24 6:22

7:2,16 32:21

32:23 39:13,17

44:5 53:8

55:20 64:15,19

64:20 74:10,11

75:2,9 80:22

135:24 149:10

194:2 203:10

names 32:21,23

33:4 55:20

nature 21:11,15

NCF 108:11

NCF's 108:10

necessarily

174:19

necessary

147:18

need 11:24

18:22 27:2

44:15 50:23

57:7 75:12,14

78:2 88:20

92:2 97:5

104:8 105:22

130:11 131:15

132:2 133:13

135:5 156:14

157:23 187:10

188:6 203:19

needed 168:20

199:3

needs 11:22

26:21 27:8

103:2 104:4

negotiated 143:5

195:23 196:10

negotiation

141:9 195:12

195:15

net 165:21

never 45:24 46:3

51:7 63:14

64:17 67:24

100:12 125:9

128:13 132:6,9

132:13 158:22

new 98:3 132:11

133:23 144:14

174:14 175:17

191:9,15

192:16 199:13

NFSs 109:8

nice 95:10 186:9

night 73:17,18

74:4 75:7

nimble 151:21

187:23

nine 16:11,20

Non 108:15

Nope 74:21

normal 65:17

88:10

North 56:10,19

56:24 57:11,15

60:10 61:1,7,8

61:18,23 65:2

65:7,19,21

66:12,16,19

67:10,16,21

notary 202:16

203:19

note 121:18

125:8 126:10

161:7 190:7

noted 202:6

203:8

notes 3:11

155:21 156:1

160:9,10,11

161:20,22

162:5 176:8

202:8

notice 1:15

noting 71:16

November

173:24 202:9

nowadays 89:3

NSF 108:13

NSF's 108:22

NSFs 109:4

number 3:8

76:21 93:17

120:3,3 146:12

163:1,5,10

174:23 178:8

numbers 183:11

183:13

NXGEN 165:6

176:23

NYGEN 177:10

178:1 181:1

O

O 202:1

oath 17:16 19:23

objeciton 71:17

object 19:18

objected 60:2

88:5

objecting 88:10

objection 12:1

14:7 15:3

18:16 19:9,20

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 219 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 220

21:7 24:6

25:14 26:17

27:10 28:17

29:8,22 34:23

35:21 37:6

42:11 46:23

48:19 51:20

56:21 59:3,10

59:15 60:3

65:8 67:5 68:3

68:24 70:4

71:1 76:23

78:21 86:13

88:2,14 91:3

98:17,24 100:2

109:15 112:22

113:16,23

114:21 115:16

118:1,23

119:18 121:10

124:6 125:8,20

126:11 127:7

127:13,21

130:10,17

134:24 144:15

149:17 172:15

177:18 178:10

186:4 188:18

190:13 193:9

196:1

objections 5:10

36:11 60:4

130:22

obligation 112:4

obligations

103:17 174:18

obstructionist

20:3

obviously 91:11

123:18 173:18

occasion 102:9

113:7

occasions

141:21 194:5

occurring 19:12

occurs 52:21

October 65:1

173:21

offer 22:22 23:9

23:22 92:8

113:12

offered 148:16

office 8:20 45:12

46:17 55:24

56:14,19,24

57:11 58:14,17

60:11,13 61:4

61:6,23 62:2

62:16,19 63:4

63:10,12 65:2

65:7,11,19

66:3,12,20,22

67:2,10,15,22

78:2 139:2

officer 43:8 68:1

68:6

offices 6:3

147:14

Oh 67:19 83:15

okay 10:19

11:10,20 12:19

13:10 14:11

17:4 20:15,21

22:4 23:14

24:1 25:6,20

27:1 28:9

29:24 33:4

41:22 42:21

47:9 49:19

53:13 54:6

57:8 58:4 59:5

66:8 67:24

73:22 74:11,14

75:8,23 76:2

80:19 81:12

82:11 88:18

92:4,13 95:22

102:6 107:20

119:23 130:20

132:7 140:23

143:8 144:5

146:2 154:3,12

157:17 159:17

160:19 170:17

171:4 172:7

177:3 178:14

179:12 187:7

191:14 192:6

193:23 195:12

196:13 197:15

200:1 201:12

Old 56:6

once 58:5

155:17 175:1

ones 59:20

101:14 154:20

156:19,22

157:7

open 169:11

174:15 186:16

200:19

operated 43:21

operates 150:9

operations 64:7

operator 40:16

40:20 41:10,15

42:14 53:12,16

79:16

operators 9:14

10:17 49:2

opinion 90:22

157:13 184:4

186:10 195:18

opportunity

104:7 188:5

200:20,21

opposed 116:18

120:8 138:22

139:19 151:13

optics 139:10

oral 1:14 80:1

order 10:18

15:16 16:9,11

17:1,19 18:15

18:15 19:9,10

27:5 38:5,6

42:5 88:17

94:17 116:21

119:10 121:5

138:5 182:3

185:19

ordering 17:7

organization

194:15

organizations

54:4

original 40:13

148:3 183:6

185:24 203:21

outside 80:21,24

95:23 147:22

outsource 87:10

outsourced

48:16,18 82:8

outstanding

54:14 97:6

112:3 119:6

179:20 182:11

182:21 184:13

overlapping

15:14

owe 170:24

owed 120:5

169:13 170:13

171:8,9 172:4

184:15

owes 119:16

182:23 183:2

owing 172:10

owned 67:3

owner 33:14,19

36:9 45:6

46:11 68:1,13

97:18 116:8

138:14

owners 38:19

45:22 46:1

47:4 89:5

97:23 139:22

ownership 13:3

33:7,10 82:14

82:18

owns 45:14

P

P-1 3:9 158:7,11

158:15

P-2 3:10 159:3,7

164:5 167:7

192:20

P-3 3:11 161:1,4

163:13 176:7

177:4

P-4 3:12 173:1,5

173:9 198:12

P-5 3:13 173:1

P-6 3:14 182:7

182:10

P-7 3:15 190:16

PA 2:5

pad 156:1

page 3:4,8 4:3,3

4:9,9,12,12

22:24 48:8

157:18 161:9

162:5,15

183:16 190:21

205:2

pages 157:12,14

paid 14:2 15:8

79:7,10,12

89:12 104:12

108:5,6 117:6

137:24 141:6

141:10 143:19

169:14 170:10

170:10,14,17

172:8 175:10

184:14

Pal 8:12 164:10

164:17

PAMELA 1:5

Papal 51:5

paper 154:6

187:18

papered 117:18

papers 42:4

paperwork

196:22 197:1

Par 1:10 6:6 7:3

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 220 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 221

7:7,21 8:12

20:12 21:23

23:14,22 24:13

35:10,12 36:16

41:3 48:3,5,6

48:11 49:11

60:8,21 61:21

129:6 165:15

165:24 188:8

parameters

22:14

park 61:13,14

part 36:1,4,7

97:17 104:22

112:20 113:14

117:5 122:5

138:18 172:2

198:23

particular 16:17

24:8 27:9

87:15 147:19

187:9 189:4

196:11 199:23

parties 5:8 17:7

17:9 48:18

partner 46:7

parts 146:24

147:2

party 37:4 57:10

100:7,13

127:19 128:13

128:18

pass 107:12

pasts 94:11

patience 131:12

pay 8:12 14:15

14:19 21:21

22:5 30:16

53:22 55:21

79:15 94:4

106:23 107:2,8

107:19 110:24

114:17,19,24

115:1,8,22

145:15,16,23

154:6 164:6,8

167:15 172:3

172:12 174:19

174:20 175:4,7

175:19 192:11

payback 103:18

paying 162:7

168:19 169:3

172:7 175:12

payment 3:15

27:23 30:1,3,5

30:11,19,21,23

30:24 97:3

107:22 108:9

139:24 141:20

142:19,23

143:6,21 144:1

144:9,13,14,23

152:12 163:1

163:18,21

165:20 167:14

167:21 168:24

169:2,4 170:20

171:14 172:14

183:17 185:18

186:1 190:18

191:6,10 199:6

payments 15:2

28:12,15 29:21

30:4,8 108:7

138:6 145:11

152:7 162:21

163:11 165:13

171:18 174:15

182:12 183:1

184:4,6 188:9

191:3,5

PayPal 77:17

pays 21:4 22:14

Pearl 165:7

176:24 177:10

178:1 181:1

pee 164:16

peeve 51:23

Pennsylvania

1:2,18 147:21

147:22

people 11:20

24:24 26:21

30:23 32:16

34:20 35:18

36:3 43:19

45:2 48:2

58:12,13 65:16

90:16,18 101:8

101:9,12 120:1

120:6,7 121:3

136:17 145:11

153:11 188:5

people's 188:9

percent 24:16

24:22 25:9,10

25:16,21 26:4

26:7 106:14,15

106:18 107:7

125:3 127:20

128:9,14

138:19,24

152:1,2 167:8

167:15,20,22

168:3,5,6,8,12

170:21,22

173:23 178:9

180:4,8 187:20

198:15

percentage

24:11,17 25:6

28:4,10 52:11

76:15,20 167:8

167:23 168:14

177:5 178:2,6

178:14,20

179:1 180:16

182:16 199:16

Perfect 19:22

performs 12:13

period 28:16

103:21,22

104:11 107:10

107:13 114:18

137:6 151:22

164:13,19

190:9

periodically

73:6

permits 15:17

192:20

permitted 17:20

person 35:13

39:7 44:19

47:16 54:6

92:17 116:16

118:11 119:16

122:24 138:22

139:14 168:14

person's 168:9

personal 72:23

73:14 97:19,24

194:8

personally 31:10

57:3 116:7

138:10 139:21

pet 51:23

phase 174:6

Philadelphia

1:17 2:5 39:24

56:15,20 57:12

61:24 65:3

66:22 67:2

91:13

phone 2:6,10

18:2,4 19:21

63:7 75:4,7

123:2,15,17,23

124:1 126:19

141:22,24

phones 45:2

49:7 138:23

pick 18:4 19:21

160:23

picture 158:14

piece's 91:18

place 1:17 2:4

9:15 125:7

160:4

placement

153:18,20,23

154:4,7

plaintiff's 17:8

plaintiffs 1:7 6:3

17:11

Plan 101:21

play 8:8

played 194:18

plays 8:10

please 16:13,23

25:5 29:16

81:20 127:16

152:10

pledge 116:20

plus 157:11

point 32:4 65:18

66:2,10 84:24

85:1 108:3

146:3,5

pointing 13:19

policy 3:9 72:21

72:23 107:17

poll 188:4

pony 35:13

poorly 145:9

portal 49:12

portfolio 153:11

portion 193:15

195:6

posing 20:1

position 19:14

131:7 150:4

163:12,14

positive 81:20

144:4 151:17

possibly 74:3

110:8

potential 33:18

56:18 59:2,8

69:20 70:3

127:1,5,11

130:16 153:24

potentially 11:9

116:17 139:20

practice 73:14

112:20 113:15

142:17 192:8

prefer 30:1

preparation

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 221 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 222

110:17 160:12

prepared 70:19

80:19

prepares 80:14

preparing 46:14

148:3

presence 62:4

present 1:21

129:24 146:7

166:24

presentation

59:2

presentations

57:24

presently 191:24

preserve 126:9

preserving

125:18

president 43:12

pretty 5:23 38:2

41:14 49:6

136:23 173:20

previously 52:3

123:14

principals 39:2

print 159:23

160:2

prior 43:24 44:3

50:18 84:19

136:14 144:13

146:11 148:19

150:19

private 153:18

153:19,22

154:4,7

privilege 88:14

126:10

privileged 126:6

Pro 64:16,17

probably 24:16

98:6 102:16

106:14,15

107:9 112:5

137:2 138:24

145:19 149:8

154:20 168:3

180:4,5,9

problem 13:21

15:24

problems 98:4

168:17

proceedings

111:2 202:6

process 70:2

76:7 83:21

86:7,8,18

87:21 96:18

101:5 112:18

197:3

processes 60:15

processing

60:11,14,20

141:4 197:9

processor

196:21

produce 80:6

produced 20:18

160:21

producing 39:16

product 22:1

23:23 24:4

26:22 27:3,4

30:9 37:23,23

38:3 49:10

96:24 104:3,14

119:24 120:2

120:13 129:17

138:23 151:15

151:17 188:3

production 4:8

160:15

productive

186:13

products 8:4

22:19,22 23:9

23:16,17,18

26:20 27:13

29:6 37:24

40:14 48:24

57:21 58:6,8

58:10 92:7

95:7 97:11

113:9,11,11

118:5,7 129:21

129:24 148:15

148:17

professional

55:12

profit 54:21

55:1

profits 68:16

program 37:22

58:11 118:11

136:13,22,24

137:10 138:18

139:3,4,8,12

169:1,16,19

170:6

programs 27:14

58:11,12

161:14

project 163:8

174:9,14

promoters 101:8

promotions

57:24

promptly

203:23

Proper 2:3 3:5

5:20,24 7:14

12:3 13:14,18

13:22 14:11,12

15:5,12 16:10

16:14,21,23

17:4,14,18

18:8,12,19,22

19:5,7,14,22

20:2,6,9 21:9

24:7 25:19

26:24 27:16

28:20 29:7,13

29:17 35:24

36:18 37:9

38:14 40:22

42:3,16 45:5

47:8 49:4

51:22 52:2

55:23 57:1

59:5,6 60:23

65:10,13 67:8

68:4 69:4 70:6

70:10,13 71:5

71:21,23 77:1

78:7,11 79:1

83:13,16 84:16

84:23 85:2,7

86:20 88:4,9

88:13,19 89:13

91:5,21 94:10

98:20 99:2

100:5,17,22

109:16,22

110:9 112:24

113:2,19 114:2

115:3,19

118:13 119:2

119:22 121:11

124:8,16,23

125:12,24

126:5,23 127:9

127:17,24

130:14,19

131:4,10 132:1

132:20 133:1,5

133:19 134:7

135:4 144:17

150:14 153:1,4

155:15,20,23

156:3 157:21

158:1,9 159:5

160:8,19,24

161:6 164:12

164:18 172:17

173:4 177:22

178:13 181:20

182:9 186:11

186:17 188:19

190:15 193:10

193:19 196:3

200:6,24

properly 8:22

prospective 9:4

9:6

protect 96:8

protected 126:9

prove 93:14

provide 12:6

125:22 177:8

190:8

provided 188:13

188:17 199:4

203:13,19

provides 23:6,14

provision

104:17,22

109:7,11

110:11 195:22

provisions 196:9

prudent 32:7

93:4 168:8

prudently 9:1

Prussia 101:21

pubic 99:20

public 1:20

33:14 43:12,14

61:22 67:21

132:18 202:16

203:20

publications

75:1

pull 87:7,18,19

87:20,23 95:5

95:24 154:22

185:5

pulled 95:13,19

pulling 86:18

87:12

purchase 9:2

103:14 118:4

118:16 151:12

177:5 180:19

181:2 186:21

187:11,19

purchased

167:10 180:15

180:22 182:19

purchases

116:16

purchasing

114:15 118:18

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 222 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 223

purport 178:15

purported 177:4

178:1,7 180:21

181:1 182:17

182:18 183:3,5

purportedly

167:9 179:22

purpose 87:24

123:1 193:8,20

201:6

purposes 130:24

158:7 159:3

161:4 173:1

182:7

pursuant 1:15

pursue 112:7

145:17

put 49:9 60:5

112:15 125:11

133:22 167:24

171:15,16

184:5 195:16

puts 49:21

putting 152:3

Q

qualifies 118:11

qualify 24:24

25:17,22 26:8

35:12 116:20

qualifying 75:24

quarterly 14:19

question 7:9,13

7:18,22,23

13:6 14:8,10

15:20 21:18

23:2,4,11,11

23:14 29:9,14

29:16 33:2

34:24 35:22

38:18 57:7

66:11 67:13

71:2,4 72:18

77:23 81:10

84:21 88:5,22

96:10 103:12

104:19 115:18

124:15,21

125:6 127:3

128:12 131:21

131:24 132:2

132:17 137:11

177:7 186:23

189:19,20

questions 5:11

19:15,17,19

20:1 40:4

43:21 66:7

69:10 70:12

121:15 123:6

130:11 134:8,9

135:6 146:4

159:21 186:8

186:12 200:8

200:21 203:23

quickly 38:2

R

R 202:1

raise 18:1 19:2

59:18

raised 109:20

ran 42:15

range 166:22

Rapid 51:5

rate 22:11 106:3

106:6,14

127:12,20

128:4,8,11,14

128:15,19,22

152:1,2,18

164:21,23,24

165:2,5,5

166:3,4,8,11

167:5 168:23

172:11 183:23

184:19 185:10

185:11,13,17

185:20 186:3

187:4,20 190:9

rates 105:24

165:3 166:20

166:22 184:22

ratio 89:15

168:11

rations 89:1

ratios 90:9

198:15

read 16:10,12,14

16:23 17:5,20

18:15 20:15

100:12 110:2

149:13 153:19

154:2 192:22

192:24 193:3

193:15 203:2,3

204:3

reading 5:8

real 75:2 114:1,3

114:5 132:10

132:13

realize 13:15

really 34:21

41:13 43:5,6

57:19 63:2

88:12 92:19

97:7 121:20

136:8 152:3

169:12 171:6

171:10 174:24

187:23 194:4

200:9

reason 30:14

46:8 74:17,20

151:24 165:10

201:10 203:5

203:10 205:2

reasons 174:21

187:13

recall 85:11

102:14 138:13

142:3 179:12

180:12,14,17

180:18,20,24

192:24 195:3

195:21 196:8

receivable 30:11

54:14 104:6

119:7 120:9

182:24 183:5

receivables 31:4

103:14 114:14

114:15 118:4

118:15,16,20

119:10 120:8

151:13 167:9

167:16 168:5

177:6 178:3,6

178:15,21

179:21 180:3

180:17,19

181:3 182:17

186:21 187:11

187:19 198:10

receive 80:10

182:24 204:1

received 68:15

106:24 115:13

126:1,7 163:6

163:20,22

167:17

recess 100:19

158:3 200:3

recollection

84:11 85:17,19

record 9:23 13:2

13:8 16:1,13

16:24 18:14,20

28:18 29:4

60:6 67:14

124:12,24

125:11 126:5

130:22 132:3

132:18 133:23

records 76:19

79:18 121:22

Recruiting 6:12

6:14,18 7:16

7:19 8:1,7,19

9:7,11 10:7,20

11:6,16 12:5

12:13 14:1,13

15:7 20:10

21:4,17,21

22:6,15 23:5

31:6 35:8 36:6

45:4,6,14,18

47:17 49:8,13

49:19,24 50:6

50:10,14,16,19

51:11,13,15

53:23 56:4,9

60:18 64:5

65:23 78:18

79:6 87:8

106:12 111:13

135:7

reduced 191:11

reduces 144:12

reduction

191:16

refer 50:24

51:18 76:16

79:2

reference 161:8

162:6 167:7

190:22 194:9

referenced

190:12

references

190:22

referred 21:5

193:7

referring 110:5

155:7 169:21

181:14

refinance

143:15

refresh 160:3

refusing 33:1

40:8

regarding 17:10

19:16 200:12

regular 36:4

regulated 99:24

relate 125:14,19

relates 10:6

relationship

8:15 13:24

15:6 35:5

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 223 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 224

134:10 170:3

175:20

relative 16:16

16:17

relevant 15:4,18

132:23 133:7

156:18 160:22

relies 199:13

remedies 110:4

110:13 195:22

remember 39:10

41:11 50:2

57:4,13 65:21

80:22 81:21

85:10,13 92:16

109:1 110:8

131:4 136:5

161:24 162:1,4

179:10

rented 67:3

reorganization

111:5

rep 9:20 80:16

repaid 28:15

145:4,7 170:9

183:19

repay 28:6

103:24 164:14

repayment 28:2

28:11,14 29:19

102:20 103:6,9

103:11,21

114:18 117:22

repeat 127:3

152:10 179:24

report 14:20

46:12 87:13,18

87:23 88:1

92:20 95:8,19

96:1,4,19

100:13 106:19

106:22

reporter 5:2

13:7 158:6

159:2 161:3

172:24 182:6

193:14 202:16

202:23

Reporter-Not...

1:20

reports 95:5,10

represation 34:5

represent 6:3

182:15

representations

153:24

represented

33:13,17,21

34:2 37:3

43:11 56:17

57:3,10 59:7

126:24 127:4

127:10,18

128:7,18

129:20 167:4

167:15 195:5

representing 2:6

2:11 57:4

represents 61:22

67:20

reproduction

202:21

request 4:8 30:4

182:4

requested

193:15

require 22:19

28:11 93:16

191:9 203:24

required 28:5

117:1,3,8

164:6,8 167:15

183:19 196:16

requirement

93:21 117:11

117:12,14

requires 97:18

191:15

requiring 114:9

research 187:8

187:11

reserved 5:11

residents 146:8

Resources 6:12

6:14,19 7:19

8:2,8,19 9:8,11

10:8,21 11:6

11:17 14:2,14

20:11 31:7

35:8 45:4,7

49:8,20 50:15

50:17 51:14,16

53:23 56:4,9

60:18 64:5

65:24 78:18

79:7 87:9

106:13 111:13

135:8

respect 10:11

11:15 13:23

41:18 91:22

94:5 130:11,23

166:2 189:13

Respectfully

111:9 140:23

respective 5:8

response 69:13

rest 163:12

168:22

restate 29:15

restructured

144:8

restructuring

142:24 144:1

result 24:14,18

25:2 53:19

139:8

resulted 122:9

Reticular

188:21

return 14:23

103:15 185:14

186:3 190:9

203:21

returns 108:7

revenue 118:22

118:24

review 54:20

93:17 160:11

reviewed 55:1

70:18 99:19

110:17

reviewing 99:21

reviews 54:23

99:16

Richmond 51:9

176:17 177:10

177:24 180:21

Richmond's

165:5

rid 98:11

right 10:14,21

18:3 22:24

23:7 26:12

27:19 31:23

33:6 40:12

42:10 45:17,20

46:4,22 48:10

48:11 51:1

52:23 58:24

61:9 63:17

75:9 76:10,13

77:11,19,20

80:8 81:8 83:7

83:19 84:5

89:21 91:2,14

95:14,15,18

97:19,21 101:5

104:12 108:5

117:24 118:18

121:8,17 122:3

122:12,20

123:19 140:19

141:7,22

143:22 145:18

146:8,12

147:22 156:19

157:2,19 170:8

171:6 175:14

176:1,5 177:1

180:11 182:13

182:20 183:18

183:23 184:15

184:18 185:14

189:10 197:4

197:10 198:12

199:14 201:2

203:3

rights 20:8

145:17

Robert 1:4

142:1

role 45:3 150:5

rolling 57:21

58:7

Rollins 194:19

ROTHSCHILD

2:8

roughly 99:12

99:14

routinely 113:21

RTR 185:14

186:1

ruin 142:11

rules 133:10,11

133:12 203:24

run 44:20 45:11

46:17 47:22

102:5

running 45:13

runs 47:16 54:6

S

S 3:6

Saint 44:7

sale 7:20 34:11

118:15 181:10

sales 8:20 9:14

9:20 10:17

31:24 32:2

33:20 34:2,8

34:10,12,13,17

34:20 35:19

36:9,15 40:19

41:10,15 42:14

44:21 47:23

48:1,14,15,22

49:2 53:11,15

54:3,7 77:8,10

77:15 79:16

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 224 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 225

80:16 102:5

149:5 150:2,6

salesman 111:12

salesmen 32:3

Sanchez 18:3

200:11

sanctions 19:4

sarcastic 156:5

satisfied 49:10

187:21

save 72:19 73:2

73:3 97:9

186:14

saved 123:18,24

124:2,3 139:15

139:18 165:15

169:3 171:21

savings 163:24

165:21

saw 100:23

102:7,10

139:16 154:5,6

156:24 157:1

193:23 194:9

saying 71:15

180:6

says 16:15 19:9

19:9 34:17

110:14 179:3

180:1 187:3

190:8

SBA 188:1

scope 88:19

sealing 5:9

search 77:3

searched 125:13

seasonality

91:12,17 93:24

94:7

SEC 101:2

second 176:15

secure 138:5

secures 113:3

securities

100:24 194:1

securitized

189:11

security 97:14

113:20 114:8,9

114:14

see 9:1 69:13

92:2 94:16,18

95:8,11 105:20

105:20 136:14

139:9 151:17

155:21 156:9

156:14 157:2

157:14 159:9

160:17 161:19

163:13 167:10

172:20 178:16

191:2

seeing 59:19

131:13

seek 113:21

seeking 111:4,5

114:7

seen 24:1 28:15

29:20 91:1,23

101:2 102:13

156:22 158:12

158:22 159:11

179:8,12,17

190:19

segment 140:24

self 40:6

sell 78:15 120:7

178:2 179:22

181:8 182:24

183:5

selling 118:17

send 9:14 32:4

77:12 80:12

81:4,5,6 90:17

sends 62:24

sense 8:15 93:5

105:10

sent 81:1

separate 55:14

56:6 58:2

181:10

separately 48:4

September

173:16

server 123:2,18

123:24 124:2,4

126:21

service 22:2

171:24

services 1:4 3:12

3:15 8:4 9:10

12:5,6,12,13

15:7 21:4,17

21:21 22:6,15

23:5,6,15 36:6

40:14 43:24

45:15,19 47:17

49:14 50:1,6

50:10,19 51:12

57:21 92:8

97:11 113:10

113:12 159:9

182:4 190:18

set 118:19

153:17 154:7

189:24

setting 42:9

settle 136:11

settlement

137:10

seven 6:15,16

45:20 49:21

85:4

Shane 2:4 62:1

66:13 72:13

share 69:15

sheet 169:18,20

177:12 203:6,9

203:11,15,22

205:1

shop 45:3,10,11

45:13 102:11

short 100:19

158:3 200:3

shorter 116:19

shortly 18:24

shoulda 77:18

show 159:6

182:1

showed 139:1

showing 131:11

shows 26:4

188:10

side 44:21 47:23

54:7 89:6,8

141:5

sign 26:10 97:18

97:24 192:16

195:14 203:10

203:11,17,18

signature

203:21 204:13

signed 182:3

significance

74:8

signing 5:8

203:14

signs 196:15

similar 30:6

76:3 115:8

168:11 177:17

similarly 1:7

simultaneously

175:12

sit 138:21

sitting 82:5

157:2

situated 1:7

situation 111:21

143:23 144:7

174:13

six 93:21 103:10

107:12 120:20

179:13

sixth 163:13

slow 187:22

slower 162:12

slowly 71:18

small 8:4 36:5

38:4 40:15

191:4 192:7

194:21

smaller 143:5

smart 44:20

149:24

smarter 44:10

149:21

smile 156:4

Snap 176:20

177:10 178:1

181:1

Snaps 165:6

sold 178:7 180:2

180:7,11

182:17

solicit 102:4

130:8 199:20

199:23

solicited 199:21

Solution 7:6

Solutions 1:10

6:5,23

solve 185:17

somebody 36:15

41:16 44:18

77:17 108:6

138:21 139:1

somebody's

86:19

soon 150:8

sorry 21:13

31:14 32:22

51:16 65:4

66:17 82:20

108:13 117:13

149:6

sort 12:17 27:18

28:2 102:17

148:14

source 10:13,14

10:18,19 52:10

64:16,17

188:14 189:4

sources 10:9,11

10:12 60:19

sourcing 10:23

space 139:2

203:13,18

speak 11:11

146:20 195:9

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 225 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 226

specific 8:15

9:10 12:23

15:16,18 25:24

26:22 27:8

32:14 81:10

110:6 116:18

119:6 120:9,24

125:2 147:8,20

189:15,23

190:2,11

specifically

11:15 16:3

25:1 30:22

31:22 34:14

41:11,12 80:8

91:10,23 98:3

102:23 123:3

129:7 144:9

147:6 180:14

190:3 198:21

specified 102:19

114:17 115:13

115:23 167:8

Spectrum 60:12

60:19 61:2,11

67:18,19 69:9

69:16,20 70:20

70:23 71:13

72:1 81:5,15

81:17,21,24

82:9,12,15,18

82:22 83:4,18

84:3 85:24

86:8,12,24

87:4 119:14

196:24 197:4

Spectrum's 61:3

61:6 70:1

Spectrums

75:20

Specturm 197:8

speed 187:22

spoke 125:10

162:9

spoken 182:13

Springfield

101:18

Spruce 39:23

stack 163:22

stake 46:4

stand 60:4 108:3

standard 93:11

95:1,5,18

96:17 97:16,17

97:23 98:22

99:3,6,8

102:18,20,21

103:5 127:12

127:19 128:8

166:5,7,8,14

166:15,22

167:5 193:7

198:16,19

199:21

standards 87:6

87:12,12 92:21

93:6 112:12

167:2

start 37:1,5

42:18 74:14

81:15 86:21

141:15 148:14

150:17 155:3,7

155:18 173:5

started 38:16

40:15 41:1,5,6

41:9,14 50:5

82:12,23 149:8

151:6 199:2

starting 43:17

44:9

state 29:7 76:17

120:12 124:23

133:20 146:18

147:7,12,19,24

186:19 187:1,9

stated 16:2

150:22 162:21

167:23 168:2

statement 16:6

55:2 144:22

statements 17:2

46:15 54:21

93:3,18 96:21

states 1:1 108:22

109:7 147:22

statistics 105:23

status 16:6

statute 186:19

stay 90:20

112:15

stayed 123:18

Steet 61:18

stenographic

202:8

step 51:22

stips 88:11

stipulated 5:6

stipulations

4:11 5:3

stock 38:22

stop 19:24 58:14

58:17 108:9

stream 118:22

119:1

street 1:17 2:5,9

39:23 56:19,24

57:11,15 60:11

61:1,23 65:3,7

65:19 66:12,16

67:10,16,21

69:23

stress 168:15

strike 21:19

53:6 81:19

112:1 113:13

116:23 132:17

strongly 17:9

structure 25:8

28:2 129:23

149:15 151:8

151:21 172:19

195:19

structured

117:23 118:14

151:11 177:15

177:16 187:14

structuring

148:14 187:18

struggle 199:2

stuff 44:24

subject 140:19

203:14

subjects 75:1

submit 80:3,5

substance 142:4

203:4,8

successful 138:1

sufficient

108:15

suggest 142:10

suggesting

150:15

sum 142:3

summer 91:14

supervision

202:23

SUPPORT 4:1

sure 8:22,24

11:13 24:10

26:1 30:15,16

30:18 32:5

37:19 45:16

48:7 49:5,9

51:2 52:22

53:21 60:7

62:17 63:16,17

63:23 70:6

72:2 74:13

79:5 80:5

87:14 94:1,7

96:2,7,22 97:7

97:20 99:22

100:11,17

111:23 122:7

124:1,3 128:6

129:11 141:10

141:23 142:2

142:21 144:3,5

144:9,11

145:19 147:23

154:9 155:2,12

158:13 161:21

162:16 164:11

165:2 167:17

179:16 183:16

185:8,22

191:13,17

195:10 201:8

survival 171:19

survived 162:24

sworn 5:15

syndicate 10:1

syndicated

189:9,12,13

T

T 3:6 202:1,1

tailor 27:5 30:15

38:5 102:24

tailored 27:7

102:22

take 8:5 13:7

14:14,18 15:17

16:16 17:21

18:4,10 51:22

100:15 121:18

149:20 157:21

158:1 162:15

177:12 178:23

185:24 189:15

201:3

taken 1:15 30:8

100:20 158:4

160:11 161:22

161:23 200:4

202:8

takes 8:21

talk 17:23 19:3

57:20 58:5,8

84:18 85:15

86:22 87:11

104:23 106:11

124:13 134:3

198:22

talked 86:3

142:5

talking 28:18,20

29:5 45:2 76:4

84:5 92:12

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 226 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 227

99:18 140:18

143:16,17

144:19,21

154:13 155:18

166:15

tax 14:23 89:10

101:23

taxes 14:14,18

14:19 95:10

technically

23:18

techniques

10:16

technologies

9:16

technology

122:24

telephones

41:14

tell 8:1 18:9

20:22 21:10,14

29:9 33:5

34:20 35:18

36:8,14 37:17

84:10 85:14

99:17 106:13

154:15 166:15

181:6

telling 36:2

146:6 155:19

156:8

template 27:18

148:11

templated 26:22

ten 168:3

term 22:10

103:6,9,11

116:17,22

117:2 144:14

165:10,17,18

172:13 183:18

185:19

terminals 12:10

terminology

143:18

terms 20:23

29:19 72:21

94:12 95:2

99:13,13

117:22 165:13

180:16 181:2

184:5,10

195:13 199:9

test 168:15

testified 5:16

66:9 123:13

126:13

testify 52:3

77:19

testimony 64:24

126:17 133:8

162:22 193:16

200:9 201:1,4

203:13

Texas 28:19,22

29:1,6,12 70:5

76:10,12,17,22

77:4,16 78:4

120:16,19

121:4 122:12

122:17 146:4,8

146:18,24

147:2,6,9

173:18,19

186:19 187:1,3

187:5 197:17

197:23 198:4

198:18 199:20

text 130:15

th 6:16

thank 13:18

52:17 123:8

133:24 200:6

204:2

thanks 154:14

they'd 197:10

thick 157:15

thing 16:12 35:6

35:7,16 38:3

91:10 98:3,5

99:17 115:10

149:21 151:17

152:5 154:21

163:4 194:1

things 11:5,14

84:4 85:13

86:10,16,17,22

87:22 91:15,18

92:22 96:3

97:5 118:10

121:6 125:2

131:12 155:7

155:10,21

184:1

think 19:11

34:19 35:1,2,3

35:6,7,16

36:17 43:7

52:20 53:4,16

55:3 66:10

75:3 78:5

84:17 89:2,17

89:22,24 90:3

92:17 93:6,10

93:24 94:23

95:7 96:6,14

96:15,19 98:2

98:5 99:1

105:15 107:23

108:2,17

112:13 115:7

116:3 119:8

120:21 122:22

123:16 134:6

138:7 139:3

145:10,21

151:15,16,18

151:24 152:5

152:23 153:10

154:22 165:9

166:6 176:7

186:6,9 192:2

195:16

thinking 60:9

90:7,8 112:7

third 37:4 48:18

57:10 100:7,12

124:24 127:19

128:13,18

thought 39:16

66:9 91:6

136:12,21

156:18 157:4

197:7

thousand

188:12

thousands 72:16

threatened

138:16

threats 138:5,7

138:10 142:7

three 94:5,6,11

94:13 95:3

97:1 103:10

157:16

time 5:12 17:12

19:19 22:11

28:16 34:1

40:24 49:14,17

50:3,4,22

65:18 66:2

67:1,9 75:12

75:14 83:23

93:24 94:22

102:6,13

104:11 105:22

107:10 120:24

130:18 131:24

133:18 136:3

138:19 144:23

156:5,7 161:20

164:13,19

165:1 173:19

176:5 179:11

190:10 193:6

195:21 200:7

times 13:17 30:8

79:9 105:12

143:11 162:13

165:11 167:21

185:24

title 43:3,4,7

titled 110:3,12

129:13 159:7

190:17

titles 43:5

today 19:12 31:9

32:24 40:6

76:4 82:6 86:6

154:19 159:15

159:18 173:7

today's 110:17

told 65:21 92:4

92:18 124:4,7

124:14 128:13

149:19

tool 55:9

top 22:24 52:9

106:14 163:19

168:19

total 163:24

180:6

totally 71:21

touched 198:7

tough 105:12

174:5

track 78:19

tracker 78:24

traditional

120:9

transact 147:24

transaction 30:2

86:3 88:1

89:15 93:4,9

130:1 143:3

172:3 175:5

189:5,14,16,17

190:2 195:7

transactions

35:10 38:6

45:1 50:13

92:9 183:7

189:1,9,24

194:22 198:17

transcript

202:10,20

203:22

treat 111:17

treated 115:15

trending 173:23

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 227 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 228

trial 5:12

tribute 152:3

trick 35:13

tricky 7:18

198:22

tried 136:10,11

tripping 122:23

true 66:11 145:3

145:6 200:24

204:5

trustee 112:17

try 18:13 52:1

57:24 65:17

90:20 92:9

103:13 105:11

140:13 143:6

168:7 184:19

189:16

trying 15:5

44:17 58:15

66:4 84:8

102:3 111:10

122:15 130:8

131:12 139:23

143:20 172:18

turn 81:2

two 20:24 30:8

53:17,17 83:22

84:4 93:22

97:1 105:14

106:14,15,18

107:7 120:3

151:24 152:2

157:16 162:2,6

163:2,10

168:21 190:21

190:22

twofold 163:4

type 12:8 23:8

24:18 25:17

57:24 58:22

64:12 78:17

80:3 90:24

95:19,24 97:14

97:19 101:2

104:10,16

113:20 115:10

132:12 149:3

types 8:3 29:19

48:24 58:11

99:16 103:3

114:8 148:15

153:8

typical 27:4

typically 36:8

194:24

U

UCC 96:5

113:13,14

UCC's 95:9

Uh-huh 40:1

53:2 83:8

121:9 176:12

176:19,21

183:20

ultimately 197:1

unable 107:22

understand 7:11

7:12,23 14:8,9

15:6 20:6 21:1

21:18 26:18

34:24 41:24

46:24 48:20

58:15 69:1

71:2,3 75:6

78:22 83:21

86:14 87:24

88:22 89:23,24

103:13 104:19

111:11 115:5

115:17 119:9

137:11 141:11

141:12 146:3

170:16 172:18

174:7 175:22

177:7,14

189:18 195:11

understanding

10:5 21:11,15

26:8 48:14

64:2 65:6 70:1

Understood

91:22

underwrite 69:3

69:5,17,23

70:24 119:15

121:20

underwriter

87:19 95:24

117:10

underwriters

69:11,16 82:1

83:6,11,17

84:1 93:17

underwrites

69:20 75:20

89:20 119:5

underwriting

32:8,12,15,19

60:20 68:21

69:7 70:2,9,14

70:19 75:11,17

76:7 81:15,17

81:23 82:2,23

83:4,21 85:24

86:1,6,8,11,18

86:24 87:1

90:3,6,11,12

90:14 91:2

92:1,14 94:12

96:18 112:11

117:5 119:13

141:4 152:4

197:8

underwritten

82:7 85:14

underwrote

83:3 85:10

167:19

unique 119:24

120:15

UNITED 1:1

unscrupulous

52:23 96:11

upside 174:4

use 8:16 10:15

24:13 55:10

71:9 74:11,22

75:2,4 85:4

95:6 100:10

120:11 143:18

uses 24:4 98:22

99:4 100:7

Usual 5:2

usually 112:17

174:7 192:16

usuary 186:18

186:24 187:8

187:15

V

Vagnose 194:2,6

vague 197:6

value 198:10

variables 31:4

varies 79:14

102:21 103:15

104:8

variety 50:24

Various 22:8,9

vary 22:10,11,11

22:12 102:20

Verbal 83:10

verbally 83:12

83:14

version 197:23

versions 197:16

197:20

versus 24:3

52:12 74:22

151:9

verus 24:2

violated 18:16

violating 17:1

violation 16:8

17:19 18:14,17

19:10

visit 136:17

137:13 139:18

visits 137:4

vital 89:22 90:1

90:2

voice 18:1,5,10

19:2

volume 146:18

volunteer 117:4

vouge 94:22

vs 1:8

W

Wait 17:14

waived 5:10

walk 8:18 36:2

38:8 69:24

167:12

wan 85:15

want 7:22 12:17

13:2 20:5 29:3

29:8,18 37:15

40:17 47:3

48:16 52:22

67:12 69:12

70:8 72:17

75:6 76:5

77:19 78:1,6

85:9 86:21

89:24 94:1,4,5

95:2 97:2,9

117:6 124:23

126:22 131:9

132:18,20

133:22 140:20

141:7,9,12

155:11 156:2

158:11 164:15

170:1 174:19

183:13,15

187:24 188:3

198:14,22

200:6,10,19

wanted 48:7

77:2 136:21

161:16,20

164:10 171:23

wants 11:1,8

wasn't 23:2,10

23:13 29:13

40:18 112:2

123:5 165:24

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 228 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 229

171:6

way 10:13 58:23

98:5 108:8

122:16 131:16

144:5 145:19

151:18 152:22

162:23 171:22

185:3 195:24

ways 9:24 10:3

13:13 122:18

199:13

we'll 15:12

131:8 201:6

we're 26:6 28:21

28:23 43:5

44:12 60:3,15

75:13 76:3

84:4,5,6 87:5

114:15 118:17

122:23 131:1

140:15,19,24

183:16 186:21

200:12,18

we've 60:2

182:12

weather 173:20

website 129:1,4

129:7,10,20

167:4

week 30:9

114:19

weekly 30:10

175:3

weeks 102:8

welcome 130:12

130:24 153:2

welcomed

127:15

went 22:23

139:13 171:20

173:21

weren't 101:4

168:4 169:12

When's 102:6

193:6

whisper 124:9

124:10

White 1:16 2:3

6:1

wife 41:18 42:8

42:17,21 43:16

43:21,24 44:2

47:19 54:23

62:10 63:9

66:5 72:5,8

82:17 99:18

149:15,19,23

150:8,18,24

151:5,7

Williams 1:16

2:3 6:2

willing 69:15

winter 94:8

162:13,20

163:7

withdraws 28:7

witness 3:2 4:2

7:12 14:9

15:14 23:13

25:15 26:19

27:12 29:15,24

35:1,23 36:14

37:8 38:12

40:12 41:24

42:13 44:17

47:1 48:21

55:19 56:23

60:5,8 67:7

69:2 70:8,11

71:3,19 76:24

78:10,23 83:15

84:12 86:15

88:23 91:7

98:19 100:4

109:19 110:7

113:1,18 114:1

114:23 115:17

118:3,24

119:20 124:22

125:9 126:7,18

127:8,23

132:21 133:6,8

133:14,16

135:2 144:16

149:18 154:24

155:4,9,14,24

157:22 160:7

164:15 169:23

172:16 177:20

178:12 181:17

182:1 186:6,14

190:14 193:18

196:2 201:2,14

203:17,18,19

203:20 204:13

witnesses 200:16

203:1

Woman-owned

44:19

wonder 72:24

wondering

58:20 73:9

197:12

word 41:13

117:12

words 84:6

107:12 122:23

123:16

work 6:11,17

7:6,15,21 9:17

10:7 11:12,16

14:1 31:1

32:14,20 34:11

34:14 35:7,19

44:3 49:3

52:24 55:24

61:10,17 63:1

63:4,7,10 64:4

64:10,13 65:17

65:23 76:12

77:6 83:11,17

87:16 105:12

133:21 134:23

135:7,13

140:13 143:20

144:23 149:9

153:9,11

161:14 198:20

worked 6:13

45:18 50:18

51:4,7 63:19

83:6 136:22

138:18 139:3

working 41:16

50:5 145:11

166:3

workout 143:18

192:9

works 80:24

123:21

worry 115:24

145:22

worse 174:1

worthiness

119:15

wouldn't 20:20

20:21 36:21

44:11 64:1,4

64:14 65:20

67:23 70:16

73:24 76:18

77:14 106:4

108:16 116:2

141:16 147:6

186:12 187:10

190:1

writ 98:15

write 70:17

74:24 75:1

106:19

writing 91:24

110:24

written 12:20,22

20:12 54:2

70:14,18 75:17

90:24 137:18

176:9 179:15

193:23

wrong 7:22

60:12 64:19

66:18 168:13

184:10

wrote 111:14

158:13,19

177:12 181:12

181:18,19

X

X 3:1,6

Y

y0ou 194:5

yeah 6:9 11:2,3

24:10 33:3

34:10 36:14,17

39:15 50:4

52:20 58:19

61:15 62:1

63:23 65:22,22

65:22 70:10

71:8 72:6 73:4

73:4,4,19

76:14 77:18,22

78:7 80:2 82:4

88:13 97:16

98:12 99:8

103:20 105:18

107:9,15

108:14,15

115:20 119:8

119:11 122:21

123:16 129:2

131:4 135:20

137:12 143:15

144:8 146:23

147:1,16

148:17,21

150:23 153:3

153:12 157:2

160:7 165:8

166:13 169:23

171:17 177:14

180:5,14

181:17 188:7

192:10 193:4

195:8 196:21

198:12

year 22:12 38:9

54:11 65:6

93:22,24 94:14

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 229 of

 230
Joseph LaForte

WWW.KLWREPORTERS.COM

Page 230

94:20,21 117:7

137:3 173:19

195:4

yearly 31:12

years 6:15,16

37:13,15 39:21

45:20 49:21

62:6 91:8 92:6

92:15 93:22

149:6 194:12

yelled 18:6

yelling 18:12

Yellow 176:10

Yellowstone

51:6,8 172:8

176:11 177:9

177:24 178:18

178:22 179:9

180:15

Yellowstone's

165:4

Yep 161:11

York 98:3

132:11 133:23

Z

0

1

1 4:13

1,000 146:15

1.01 167:1

1.4 166:4

1.49 167:2

10 4:5,6 146:14

10,000 73:5

10:00 1:19

100 146:15

100,000 163:6

163:20,23

165:19 168:21

168:23 169:6

170:20 171:5

172:10 175:6

186:15 199:3,5

11 4:4

110 164:20

113,000 175:6

12 137:5 184:7

124 4:7

127 4:4

13 4:4

130 4:5

1370 184:8

14 39:21

141 61:23 66:16

66:17,19 67:10

145 164:23

184:23

147 184:23

148 165:6

149 165:5,6,6,7

15 4:4

158 3:9

159 3:10

16 62:6

161 3:11

1650 1:17 2:5

173 3:12,13

18 62:6 94:16

137:6

18-CV-00268

1:6

1800 1:16 2:4

182 3:14

186 4:6

190 3:15

19102 1:18

19103 2:5

1932 39:23

1992 194:13

2

20 24:16 25:9,16

26:4,7 60:10

61:1,6,18 65:2

65:7,19 66:12

67:16,21

146:15 173:23

200 64:17

2000 2:9 64:16

2002 74:16

2007 133:17

2008 46:10

2011 149:8

2012 38:13,20

38:23 39:9

43:16 44:1,4

49:22 50:6

99:11 129:24

148:2,14,19

150:19

2015 122:11

146:7 166:23

197:18,24

2017 62:1 66:13

81:8,11,18

84:6 97:23

106:8 109:1,3

109:12 110:7

111:15,16

161:23 199:24

2018 62:3 106:6

2019 1:18 65:1

202:9

2020 16:5

20th 2:9

21 170:21

215-299-2842

2:10

215-864-7142

2:6

22 56:10,19,24

57:11,15 61:8

65:20 104:4

167:21

24 65:1

240 180:4

25 46:20 167:8

167:15,19,22

168:4,6,8

250,000 167:20

171:20 189:22

2600 168:24

261 174:4

261,785 174:2

29 16:5

2nd 61:23 66:19

67:10

3

3 4:5 110:11

3,250 191:6

3.1 110:2

3:46 201:15

30 121:2 168:10

168:12 180:4,8

198:14 204:1

30,000 176:24

300 104:8

300,000 188:12

33,000 175:7

340,000 180:2

35 127:20 128:9

128:14 168:12

370,000 171:3,8

172:10

370,000.00

164:5

396,000 173:24

3rd 56:10,19,24

57:11,15 60:10

61:1,7,8,18

65:2,7,19,21

66:12,16 67:16

67:21

4

4 4:6 174:11

4,000 186:14

4,300 165:22

40 52:15

40,000 176:20

184:8

400 49:2

450 139:17

48,860 163:24

5

5 1:18 3:5 4:13

202:9

5,000 167:21,21

191:6

50 61:16 134:9

146:15 165:14

50,000 177:1

500 121:3

139:16

5000 169:5

547,000 169:13

547,600.00

164:9

56 170:21

570,000 171:9

172:13

59 4:5,6

6

6 4:7

6,600 162:7

165:13

6,667 168:19

6,667.00 162:8

60 52:15

60/40 52:14

6000 169:4

604 178:24

604,000 178:23

180:1

6667.00 163:19

7

7,000 191:7

70,000 176:13

178:19,24

769,000 173:22

8

80 24:22 25:10

25:21

80,000 176:18

9

90,000 165:23

900,000 171:20

95 138:19

98 187:20

997,000 173:17

173:22

Case 9:20-cv-81205-RAR Document 21-3 Entered on FLSD Docket 07/27/2020 Page 230 of

 230