" ! HOUSE OF REPRESENTATIVES 113TH CONGRESS

1st Session 

REPORT

113–208 

House Calendar No. 52 

IN THE MATTER OF ALLEGATIONS 

RELATING TO 

REPRESENTATIVE JOHN TIERNEY 

R E P O R T 

OF THE

COMMITTEE ON ETHICS 

SEPTEMBER 11, 2013.—Referred to the House Calendar and ordered to 

be printed 


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IN THE MATTER OF ALLEGATIONS RELATING 

TO REPRESENTATIVE JOHN TIERNEY 


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U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

82–732 

" ! HOUSE OF REPRESENTATIVES 113TH CONGRESS

1st Session 

REPORT

2013

113–208 

House Calendar No. 52 

IN THE MATTER OF ALLEGATIONS 

RELATING TO 

REPRESENTATIVE JOHN TIERNEY 

R E P O R T 

OF THE

COMMITTEE ON ETHICS 

SEPTEMBER 11, 2013.—Referred to the House Calendar and ordered to 

be printed 


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(II) 

COMMITTEE ON ETHICS 

K. MICHAEL CONAWAY, Texas 

Chairman 

CHARLES W. DENT, Pennsylvania 

PATRICK MEEHAN, Pennsylvania 

TREY GOWDY, South Carolina 

SUSAN W. BROOKS, Indiana 

LINDA T. SA ́ NCHEZ, California 

Ranking Member 

PEDRO R. PIERLUISI, Puerto Rico 

MICHAEL E. CAPUANO, Massachusetts 

YVETTE D. CLARKE, New York 

TED DEUTSCH, Florida 

REPORT STAFF 

DANIEL A. SCHWAGER, Chief Counsel/Staff Director 

THOMAS A. RUST, Acting Director of Investigations 

JACKIE M. BARBER, Counsel to Chairman 

DANIEL J. TAYLOR, Counsel to the Ranking Member 

MIGUEL TORUN ̃ O, Senior Counsel 

BRITTANY M. BOHREN, Investigative Clerk 


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(III)

LETTER OF SUBMITTAL 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON ETHICS, 

Washington, DC, September 11, 2013. 

Hon. KAREN L. HAAS, 

Clerk, House of Representatives, 

Washington, DC. 

DEAR MS. HAAS: Pursuant to clauses 3(a)(2) and 3(b) of rule XI 

of the Rules of the House of Representatives, we herewith transmit 

the attached report, ‘‘In the Matter of Allegations Relating to Representative John Tierney.’’ 

Sincerely, 

K. MICHAEL CONAWAY, 

Chairman. 

LINDA T. SA ́ NCHEZ, 

Ranking Member. 


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(V) 

C O N T E N T S 

Page 

I. INTRODUCTION ............................................................................................. 1 

II. HOUSE RULES, LAWS, REGULATIONS, OR OTHER STANDARDS OF 

CONDUCT ..................................................................................................... 2 

III. BACKGROUND ................................................................................................ 2 

IV. ANALYSIS ........................................................................................................ 6 

V. CONCLUSION .................................................................................................. 9 

VI. STATEMENT UNDER RULE XIII, CLAUSE 3(c) OF THE RULES OF 

THE HOUSE OF REPRESENTATIVES .................................................... 10 

APPENDIX A: REPORT AND FINDINGS OF THE OFFICE OF CONGRESSIONAL ETHICS (Review No. 13–1064) ........................................................... 11 

APPENDIX B: REPRESENTATIVE TIERNEY’S RESPONSE TO THE REPORT AND FINDINGS OF THE OFFICE OF CONGRESSIONAL ETHICS 

(Review No. 13–1064) .......................................................................................... 417 


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82–732 

House Calendar No. 52 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 113–208 

IN THE MATTER OF ALLEGATIONS RELATING TO 

REPRESENTATIVE JOHN TIERNEY 

SEPTEMBER 11, 2013.—Referred to the House Calendar and ordered to be printed 

Mr. CONAWAY, from the Committee on Ethics, 

submitted the following 

R E P O R T 

I. INTRODUCTION 

On June 13, 2013, the Office of Congressional Ethics (OCE) sent 

a referral to the Committee in which it recommended further review of the allegations that certain payments Representative John 

Tierney’s wife received from her brother and their mother were income that should have been reported as such to the Internal Revenue Service (IRS) and disclosed on Representative Tierney’s annual Financial Disclosure Statements. Representative Tierney and 

his wife treated the payments as gifts among family members and 

therefore did not report the payments to the IRS or disclose them 

on Representative Tierney’s Financial Disclosure Statements. The 

legal determination of whether a transfer is treated as income or 

a gift is a highly fact-specific inquiry. In particular, courts put 

heavy emphasis on the donor’s intent. This inquiry is further complicated in matters involving transfers between family members. 

The Committee reviewed the allegations, conducted additional investigation as necessary, and unanimously concluded that the presently-available evidence was inconclusive as to whether the payments to Mrs. Tierney were income or gifts and does not warrant 

a finding that Representative Tierney intentionally mischaracterized the nature of the payments for financial disclosure or tax 

purposes. Therefore, after careful consideration, the Committee has 

unanimously voted to close the matter referred by the OCE, determined that no further action is required at this time, and agreed 

to end its review of this matter with the publication of this Report, 

which includes the materials referred to the Committee by the 

OCE. 


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1 26 U.S.C. § 1. 

2 26 U.S.C. § 102(a). 

3 26 U.S.C. § 2501. 

4Frequently Asked Questions on Gift Taxes, INTERNAL REVENUE SERVICE, http://www.irs.gov/ 

Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes (last 

visited Sept. 6, 2013). 5 Information at 2, United States v. Tierney, Crim. No. 1:10–CR–10315–WGY (D. Mass. Oct. 

4, 2010). 6 Id. 

7Testimony of Mrs. Tierney at 44–53, United States v. Lyons and Eremian, Crim. No. 1:10– 

CR–10159–WGY (D. Mass. Nov. 21, 2011). 

II. HOUSE RULES, LAWS, REGULATIONS, OR OTHER 

STANDARDS OF CONDUCT 

The Code of Ethics for Government Service, clause 2, provides 

that any person in government service should ‘‘[u]phold the Constitution, laws, and legal regulations of the United States and all 

governments therein and never be a party to their evasion.’’ One 

such law is the Internal Revenue Code (IRC), which imposes a tax 

on individual income.1 Gifts are not included in gross income for 

tax purposes,2 but are separately taxable to the donor.3 The IRS 

defines a gift as ‘‘[a]ny transfer to an individual, either directly or 

indirectly, where full consideration (measured in money or money’s 

worth) is not received in return.’’ 4

House Rule XXVI, clause 2, provides that Title I of the Ethics in 

Government Act (EIGA) of 1978 ‘‘shall be considered Rules of the 

House as they pertain to Members, Delegates, the Resident Commissioner, officers, and employees of the House.’’ The EIGA, codified at 5 U.S.C. app. 4 §§ 101 et seq., provides that Members, officers, and certain staff of the House are required to file an annual 

Financial Disclosure Statement. The EIGA also requires candidates 

for federal office to file a Financial Disclosure Statement while they 

are a candidate. The EIGA, at Section 102(a), describes the information that must be included in a Financial Disclosure Statement. 

Section 102(e)(1)(A) requires a filer to include ‘‘[t]he source of items 

of earned income earned by a spouse from any person which exceed 

$1,000. . . .’’ Under Section 102(a)(2)(A), a filer must disclose ‘‘the 

value of all gifts aggregating more’’ than a set amount ‘‘received 

from any source other than a relative of the reporting individual 

. . . .’’ However, under Section 102(e)(1), a filer does not need to 

include gifts to a spouse that are wholly independent of the filer. 

Section 104 of the EIGA makes the failure to file such information 

a misdemeanor punishable by a fine under Title 18 of the United 

States Code. 

III. BACKGROUND 

A. TRANSFERS TO REPRESENTATIVE TIERNEY’S WIFE

Representative Tierney is married to Mrs. Patrice Tierney. Mrs. 

Tierney’s brothers, Robert and Daniel Eremian, allegedly ran an illegal betting website that they moved to Antigua and Barbuda 

around 1996.5 Robert Eremian moved from Massachusetts to Antigua around this same time.6 Beginning around 2002 and continuing through 2009, Mrs. Tierney assisted Robert Eremian in 

many ways, including paying his personal bills, filing his tax returns, managing his baseball season tickets, and helping with his 

minor children who continued to reside in Massachusetts.7 During 


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8 Id. at 52. 9Ms. Tierney’s mother, Mary Eremian, passed away on May 27, 2011. 

10Supra. note 7, p. 51. 11 Id. at 47. 

a portion of this time, Mrs. Tierney also cared for their mother, 

Mary Eremian, who had cancer.8

As part of these activities, Mrs. Tierney had access to and control 

over Robert Eremian’s checking account. Mrs. Tierney used money 

from Robert Eremian’s checking account to pay for expenses related to the care of Robert Eremian’s children and their mother. 

After a few years, Mrs. Tierney began writing checks from Robert 

Eremian’s checking account to herself, in the amount of approximately $1,000 per month. From 2004 to 2010, the total amount of 

checks from Robert Eremian to Mrs. Tierney, including both the 

monthly payments and funds to assist with Robert Eremian’s children, was $173,047.75. Beginning in 2006, Mrs. Tierney also wrote 

checks from her brother to their mother, which their mother, in 

turn, endorsed to Mrs. Tierney.9 From 2006 to 2010, the total 

amount of checks from Mrs. Tierney’s mother to Mrs. Tierney was 

$50,000. 

Representative Tierney and his wife filed joint tax returns from 

2008 to 2010 on which they did not report any payments from Robert Eremian or Mrs. Tierney’s mother as income. Representative 

Tierney also never disclosed Robert Eremian or Mrs. Tierney’s 

mother as a source of earned income for Mrs. Tierney on his annual Financial Disclosure Statements. 

On September 20, 2010, Mrs. Tierney entered into a plea agreement with the United States Attorney for the District of Massachusetts. Through that agreement, Mrs. Tierney agreed to waive indictment and plead guilty to four counts of Aiding and Abetting the 

Filing of False Tax Returns for her brother Robert Eremian. A little more than a year later, Mrs. Tierney testified in the related 

trial of her other brother, Daniel Eremian who was indicted along 

with their brother Robert Eremian on August 5, 2010, for charges 

related to an illegal gambling operation. Robert Eremian currently 

resides in Antigua and has refused to return to the United States. 

During Daniel Eremian’s trial, the prosecution asked Mrs. Tierney about the payments she received from Robert Eremian and 

their mother. The questions probed whether the payments were income or gifts. Mrs. Tierney characterized the payments from her 

brother as ‘‘gifts from [Robert] for helping him.’’ 10 Mrs. Tierney 

testified that she issued checks to herself from Robert Eremian’s 

account for $1,000 a month. She also testified that she issued 

checks to their mother (also for $1,000 a month) from Robert 

Eremian’s account which their mother, in turn, endorsed to her. 

Mrs. Tierney denied that checks were endorsed to her from their 

mother in order to assure that payments from Robert Eremian’s account remained within the threshold of tax-free gifts received from 

family members. Instead, Mrs. Tierney described the payments 

from her brother to their mother that were signed over to Mrs. 

Tierney as ‘‘a way for [their mother] to compensate me for all I did 

for her.’’ 11 Mrs. Tierney denied that these payments were salary 


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12 Id. at 52. 13 Id. at 58. 14 Id. 15Mooney and Rezendes, On eve of debate, Tierney releases tax returns, THE BOSTON GLOBE

(Sept. 27, 2012), http://www.bostonglobe.com/metro/2012/09/26/eve-debate-rep-john-tierney-releases-tax-returns/yGWIRw32TLmvqYUTMPZuMN/story.html. 16The campaign’s tax lawyer is a former Senior Attorney with the IRS Office of Chief Counsel. 

The tax lawyer has no obvious partisan background. 17Letter from D. Sean McMahon to Michael Rezendes (Sept. 24, 2012), p. 2 (citing Boris 

Bittker & Lawrence Lokken, Federal Taxation of Income, Estates & Gifts, par. 10.2.6 (2012)). 18 Id. (citing Dallas v. Commissioner, 92 T.C.M. (CCH) 313 (2006); Estate of Stone v. Commissioner, 86 T.C.M. (CCH) 551 (2003); Harwood v. Commissioner, 82 T.C. No. 239, 258 (1984)). 19OCE Review No. 13–1064. 20 Id., p. 16 n. 92. 

paid to her for services performed. Instead, she said that she ‘‘was 

being appreciated.’’ 12

During a sidebar, Mrs. Tierney’s lawyer asked the court for a curative instruction to the jury related to tax terms. The lawyer stated, ‘‘You might want to say there is no tax consequences to a recipient, a donee of a gift that exceeds the limits.’’ 13 The judge replied, 

‘‘If you believe it’s a gift. I mean, I’m not getting into that one.’’ 14

Representative Tierney’s opponent in the 2012 election made a 

campaign issue of whether the payments from Robert Eremian and 

Mrs. Tierney’s mother were income or gifts.15 Representative 

Tierney’s campaign hired a tax lawyer to submit an opinion letter 

to a news outlet that was reporting on this issue.16 The tax lawyer 

reviewed the transcripts from Mrs. Tierney’s sentencing, Daniel 

Eremian’s trial, and a related trial. The tax lawyer’s opinion was 

that the payments to Mrs. Tierney were gifts, not income. The tax 

lawyer cited a legal treatise, Federal Taxation of Income, Estates 

& Gifts, stating that the traditional gift versus income ‘‘analysis is 

not applied literally to family transfer situations.’’ 17 The tax lawyer further cited a line of U.S. Tax Court cases holding that transfers between family members are presumed to be gifts.18

B. OCE REFERRAL

On June 13, 2013, the OCE referred to the Committee for further 

review allegations that Representative Tierney should have disclosed Robert Eremian as a source of earned income for Mrs. Tierney on Representative Tierney’s annual Financial Disclosure Statements and that the payments from Robert Eremian to Mrs. Tierney 

were income and should have been reported as such to the IRS.19

On July 26, 2013, the Committee announced that it was extending 

its review of the matter for an additional 45 days. 

According to the OCE, during its review, Representative Tierney 

produced documents to the OCE but declined to be interviewed. 

Mrs. Tierney did not cooperate with the OCE review, saying, 

through her attorney, that on ‘‘October 23, 2012, [she] was involved 

in a serious automobile accident and suffered head and neck injuries, with resulting memory loss.’’ Robert Eremian, who remains a 

fugitive, refused to provide information subject to the provisions of 

18 U.S.C. 1001. And Daniel Eremian’s counsel did not respond to 

the OCE’s request for information. 

The OCE reviewed the opinion letter issued by the tax attorney 

hired by Representative Tierney’s campaign. The OCE noted ‘‘that 

the legal opinion of the counsel for the campaign committee conflicts with U.S. Supreme Court precedent.’’ 20 The OCE further 

stated that ‘‘although the opinion from the counsel for the camVerDate Mar 15 2010 01:25 Sep 17, 2013 Jkt 082732 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR208.XXX HR208

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21 Id. 22The Committee also reviewed the OCE’s Memorandum of Interview of Robert Eremian’s 

Tax Attorney. See Report and Findings of the Office of Congressional Ethics in the Matter of 

Representative John Tierney (Review No. 13–1064), Exhibit 7. That interview indicates that 

Robert Eremian’s Tax Attorney gave advice on how to structure the transfers to Mrs. Tierney 

to avoid gift tax liability. However, he did not have additional information relevant to the question of whether the transfers were income or gifts. 

paign committee explains that determining whether such payments 

are gifts or income is a fact specific question, the opinion is not 

based on any facts from interviews with the relevant parties.’’ 21

C. COMMITTEE REVIEW

Pursuant to Committee Rule 17A(a), the Committee reviews the 

reports and findings transmitted by the OCE without prejudice or 

presumptions as to the merit of the allegations. The Committee has 

reviewed the materials provided by the OCE, including the sworn 

testimony of Mrs. Tierney.22 The Committee also asked numerous 

questions of Representative Tierney who cooperated with the Committee’s requests. Representative Tierney maintained that he was 

never aware of any intent for the payments in question to be treated as earned income. Representative Tierney affirmed to the Committee that there was no instance of Robert Eremian or Mrs. 

Tierney’s mother ever expressing any intent that the payment to 

Mrs. Tierney should be treated as compensation for services rendered. Representative Tierney further affirmed that there was 

never any agreement, written or otherwise, between Mrs. Tierney 

and Robert Eremian or Mrs. Tierney’s mother regarding the transfer of funds to Mrs. Tierney, and that when Mrs. Tierney helped 

her brother and his family, and when she cared for their mother, 

she did so voluntarily. Finally, Representative Tierney affirmed 

that he is not aware of any instance in which Robert Eremian or 

Mrs. Tierney’s mother withheld or otherwise paid taxes, or filed 

any forms with the IRS, with respect to the transfer of funds to 

Mrs. Tierney. 

In addition, the Committee conducted a telephone interview of 

Robert Eremian, who, as noted above, is currently under indictment by U.S. authorities and is living in Antigua. Mr. Eremian corroborated the statements of Representative Tierney and Mrs. Tierney that the payments to his sister were never intended to be 

treated as salary in exchange for services rendered. Mr. Eremian 

stated that during a trying time in his life Mrs. Tierney took over 

for Mr. Eremian’s wife in overseeing certain basic household responsibilities for Mr. Eremian such as taking care of his children 

and paying his personal bills. In addition, Ms. Tierney cared for 

her and Mr. Eremian’s ailing mother. Mr. Eremian said that he 

wanted to ‘‘compensate’’ his sister for her assistance. However, he 

emphasized that he was unsure that the term ‘‘compensate’’ was 

properly applied in this scenario, and that the most important 

thing to him was to assure that Mrs. Tierney did not suffer any 

losses as a result of her assistance to him. Furthermore, Mr. 

Eremian stated that he did not have any documentary evidence regarding these questions. 


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23 26 U.S.C. § 1. 24 26 U.S.C. § 102(a). 25 26 U.S.C. § 2501. 26 363 U.S. 278 (1960). 27 Id. at 285 (quoting Commissioner of Internal Revenue v. LoBue, 351 U.S. 243, 246 (1956)). 28 Id. (quoting Robertson v. United States, 343 U.S. 711, 714 (1952)). 29 Id. (citing Old Colony Trust Co. v. Commissioner, 279 U.S. 716, 730 (1929)). 30 Id. (quoting Bogardus v. Commissioner, 302 U.S. 34, 41 (1937)). 31 Id. (quoting Robertson v. United States, supra note 28). 32 Id. at 285–286 (quoting Bogardus v. United States, supra note 30, at 45). 33 Id. at 290. 34The limited precedent applying Duberstein to intrafamily transfers is easily distinguishable 

from this matter. For example, in Altman v. C.I.R., 475 F.2d 876 (2d Cir. 1973), the court held 

that a transfer of cash and stock from a mother to a son was income, not a gift. However, the 

court found evidence that the transfer ‘‘was prompted by something less than maternal affection’’ because the son had ‘‘threatened to throw the family business into bankruptcy and report 

[the mother] to the Internal Revenue Service for alleged violations’’ if she did not complete the 

transfer. 

IV. ANALYSIS 

The IRC imposes a tax on individual income.23 If the payments 

to Mrs. Tierney were income, Representative Tierney and his wife 

would have owed taxes on the payments. Conversely, the IRC excludes gifts from gross income for tax purposes.24 Gifts are, instead, separately taxable to the donor.25 Thus, if the payments 

were gifts, Representative Tierney and his wife would not owe 

taxes on the payments. The determination of what constitutes a 

gift versus income is highly fact-specific and can be difficult to 

make in instances where both indicia of consideration and donative 

intent are present. This analysis is further complicated in instances involving transfers between family members. 

The seminal case on determining whether transfers of money are 

income or gifts is Commissioner v. Duberstein.26 In Duberstein, the 

Supreme Court set forth a number of principles to take into account in making this determination. The Court stated that a payment will be recognized as a gift when it ‘‘proceeds from a ‘detached and disinterested generosity’ ’ 27 or ‘out of affection, respect, 

admiration, charity or like impulses.’ ’’ 28 However, ‘‘the mere absence of a legal or moral obligation to make . . . a payment does 

not establish that it is a gift.’’ 29 ‘‘[I]f the payment proceeds primarily from ‘the constraining force of any moral or legal duty,’ or 

from ‘the incentive of anticipated benefit’ of an economic nature, it 

is not a gift.’’ 30 ‘‘And, conversely, ‘(w)here the payment is in return 

for services rendered, it is irrelevant that the donor derives no economic benefit from it.’ ’’31 In making these assessments, the Court 

stated that the most critical consideration is the transferor’s intent.32 Each of these factors should be decided on a case-by-case 

basis.33

In its analysis, the OCE relied almost entirely on Duberstein. In 

applying the Duberstein line of cases there are several factors that 

would suggest the regular monthly payments directly to Mrs. Tierney and those endorsed over from her mother drawn on Robert 

Eremian’s account were taken in exchange for services rendered, 

and that it would be reasonable to characterize them as earned income. However, the OCE did not address the additional legal analysis applied to intrafamily transfers. 

Indeed, there is very little legal authority applying Duberstein to 

intrafamily transfers.34 Instead, as noted in the legal opinion for 


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35 Boris Bittker & Lawrence Lokken, Federal Taxation of Income, Estates & Gifts, par. 10.2.6 

(2012). 36 Id. (citing Restatement of Restitution § 107 cmt. (1937)). 37 Id. (citing Loveland’s Est. v. CIR, 13 TC 5 (1949)). 38 38 Id. 39 Id. 40Transfers from an estate are subject to yet another taxation scheme. 26 U.S.C. §§ 2001 et seq. 41 Harwood v. Commissioner, 82 T.C. No. 239, 258 (1984) (citing Estate of Reynolds, 55 T.C. 

172, 201 (1970)). 42 Id. 43 Id. at 259. See also Dallas v. Commissioner, 92 T.C.M. (CCH) 313 (2006) (finding a gift, 

in part, because the transaction was designed by donor’s counsel to serve donor’s estate planning 

goals and recipients were not represented by their own counsel). 44 Id. at 257 (quoting 26 CFR § 25.2512–8). 45 Id. at 259. 

Representative Tierney’s campaign, intrafamily transfers are subject to a presumption that they are gifts. 

The treatise cited by the tax opinion includes a chapter entitled 

‘‘Intrafamily Transfers.’’ 35 Amongst other things, the treatise notes 

that some transfers of assets between family members are regularly treated as tax-free ‘‘even though their excludability under the 

Duberstein criteria is arguable.’’ 36 This analysis hinges, in large 

part, on the presumption that certain services performed by family 

members to the benefit of other family members are done for free, 

thereby rendering moot even explicit agreements for money in exchange for those services.37 To illustrate this point, the treatise 

cites a Maryland state court case holding that a promise of compensation for services may be rebutted by a close relationship of 

parties, and a U.S. Tax Court case holding that even when a husband agreed to pay his wife for health care services the money she 

received from him could be treated as a gift.38 The treatise does 

caution, however, that some agreements that are ‘‘stimulated by affection’’ can nevertheless be legally enforceable, and ‘‘to the extent 

that such obligations are paid pursuant to legal compulsion, these 

amounts would not qualify as gifts if the Duberstein criteria were 

pushed to their logical extreme.’’ 39

While courts have rarely addressed the question of whether an 

intrafamily transfer is a gift or income, they have addressed the 

question of whether an intrafamily transfer is a gift or an arm’slength transaction in the context of sales of assets between family 

members.40 Those cases generally hold that there is a presumption 

that intrafamily transfers are gifts and not bona fide sales in the 

ordinary course of business.41

For example, Harwood v. Commissioner 42 involved the transfer 

of a company’s partnership interest from a mother to her sons in 

exchange for a note. The U.S. Tax Court held that, to the extent 

that the fair market value of the partnership interest was less than 

the value of the note, the transfer was a gift. The court explained 

the transfer was not an ‘‘arm’s-length’’ transaction, to wit, the 

transfer was structured solely by the family accountant with no 

bargaining.43 In its decision, the court noted the Gift Tax Regulations’ provision that transfers ‘‘made in the ordinary course of business’’ will be considered to be exchanges made for full consideration 44 and that ‘‘[t]ransactions between a family group are subject 

to special scrutiny.’’ 45

It is possible, however, to rebut the presumption that intrafamily 

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46 86 T.C.M. (CCH) 551 (2003). 47 Id. at 43–44. 48See e.g., House Comm. on Standards of Official Conduct, In the Matter of Representative 

James A. Traficant, Jr., H. Rpt. 107–594, 107th Cong., 2d Sess. at 1 (2002). 49 House Comm. on Standards of Official Conduct, In the Matter of Representative Charles B. 

Rangel, H. Rpt. 111–661, 111th Cong., 2d Sess. at 2 (2010). 50 Id. at 922–931. Indeed, Representative Rangel attempted to pay all the taxes before the 

Committee concluded its investigation, but the IRS would not accept payments outside the statute of limitations. 

sioner,46 the U.S. Tax Court held that a transfer of various assets 

from parents to their children was not a gift because the transfer 

was an arm’s-length transaction. The court explained that each 

party negotiated the terms of the agreement (instead of one party 

recommending a deal structure and the other simply acquiescing to 

that structure), that the parties used independent counsels in those 

negotiations, and that the transfers were motivated primarily by 

investment and business concerns and the avoidance of litigation 

by the children after the parents’ death.47

There is even less guidance in the EIGA as to the distinction between income and gifts from family members, and the Committee 

has never directly addressed the distinction. However, the Committee would consider similar factors as in the tax context for their 

informative value. 

The Committee has recommended to the House that Members be 

sanctioned for failure to report and pay taxes.48 Most recently, in 

the matter of Representative Charles Rangel, the Committee recommended to the House that it censure Representative Rangel for, 

among other things, his failure to report and pay taxes on a property he owned in the Dominican Republic.49 The House further ordered Representative Rangel to make payments to the U.S. Treasury for the amount of back taxes owed, even though the taxes were 

outside the statute of limitations. However, there was no dispute 

that Representative Rangel owed the taxes in question. Indeed, the 

amount he needed to repay was determined by a tax opinion that 

Representative Rangel himself commissioned.50 Unlike in the matter of Representative Rangel, the record before the Committee in 

this matter is unclear as to whether Representative Tierney and 

his wife owe taxes on the payments in question. 

As noted earlier, there are factors present that would advise 

treatment of the payments as income in circumstances not involving family members, subject to the Duberstein case and its progeny 

alone. For instance, the payments were regular monthly payments 

in the same amount which were recognized to be ‘‘compensation’’ 

(even if Mrs. Tierney and Robert Eremian believe that ‘‘compensation’’ is consistent with describing something as a gift, and not a 

salary). Furthermore, for Mrs. Tierney to regularly write monthly 

checks to her mother with the knowledge and intent that they 

would be immediately and entirely endorsed back to Mrs. Tierney 

may, though Mrs. Tierney appears to have denied this suggestion 

at the trial of Daniel Eremian, evidence an intent that the ‘‘gifting’’ 

nature of the two step transfer is a mere pretext (though it is possible that the pretext is merely to disguise the full amount of the 

gift from Robert Eremian, in which case the Tierney’s tax and financial disclosure obligations would not change). 

Based on these factors, if the Committee were asked for informal 

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closure Statements, the Committee might advise that the most cautious approach would be to report the regular monthly payments 

(not the clear reimbursements for expenses) as income. However, 

where there is a significant question of tax law, the Committee regularly advises filers to consult with outside tax attorneys and treat 

the uncertain amounts in good faith upon such advice for both tax 

reporting and financial disclosure purposes. 

However, even these factors are not conclusive and their persuasive character is diminished further in the context of intrafamily 

transfers. Furthermore, just as the courts have almost never addressed circumstances clearly analogous to these, the Committee 

has issued no guidance in the past which would clearly instruct a 

filer how to interpret these facts for purposes of financial disclosure. Finally, based on the unavailability of Mrs. Tierney’s mother 

and Robert Eremian’s statement that he had no documentary evidence regarding this issue, it appears that any additional fact-gathering would be incomplete, at best, and insufficient to overcome the 

clear testimony of Mrs. Tierney regarding her understanding and 

intent, and Representative’s Tierney’s affirmation that he was and 

is not aware of any intent or indicia of intent for the payments to 

be the equivalent of salary or earned income. 

V. CONCLUSION 

As explained above, a determination of whether earned income 

accrued to Representative Tierney’s wife relies on a variety of factors and has very little precedent in analogous factual circumstances. To date, Representative Tierney and Mrs. Tierney 

have both sworn or affirmed that they believe the intent of the regular monthly payments were as gifts, and not as arm’s-length salary for services. The only other surviving witness who could verify 

or contradict that understanding, Robert Eremian, has further corroborated their statements. Beyond such direct testimony or documentary evidence related to the intent of the parties to the transfer, the few factors discussed above concerning the nature of the 

payments which might be persuasive in the non-family context, are 

far less persuasive in the intrafamily transfer context. In either 

context, whether or not the factors are persuasive of how the payments should best be treated, these factors certainly are not sufficient to warrant a finding that Representative Tierney intentionally mischaracterized the nature of the payments for financial 

disclosure and tax purposes. 

In addition, Representative Tierney’s constituents are well aware 

of the facts surrounding the relevant payments and their reporting 

at this time. Therefore, the interests of reporting on Financial Disclosure Statements have been served, and would not be furthered 

even if additional evidence led the Committee to require an amendment of Representative Tierney’s previously filed Financial Disclosure Statements. Finally, there is no reason for the Committee to 

consider referral to the IRS or the Department of Justice as these 

payments and questions about them were explored in the Government’s prosecution of Daniel Eremian and were apparently known 

to both agencies at the time the Department of Justice negotiated 

a guilty plea from Mrs. Tierney for aiding and abetting the false 

tax filings of Robert Eremian. 


pwalker on DSK7TPTVN1PROD with REPORTS
10 

51 House Rule XI, clauses 3(a)(2) and 3(b). 

For all these reasons, and after careful consideration, the Committee has unanimously voted to close the matter referred by the 

OCE, determined that no further action is required, and agreed to 

end its review of this matter with the publication of this Report. 

Pursuant to House Rule XI, clause 3(b)(8)(A), and Committee 

Rules 17A(c)(2), the Committee hereby publishes the OCE’s Report 

and Findings related to the allegations that Representative Tierney 

failed to report income to the IRS and disclose said income on his 

Financial Disclosure Statements. 

The Chair is directed, upon providing the notices required pursuant to House Rule XI, clause 3(b)(8)(A), and Committee Rule 

17A(b)(2), to file this Report with the House, together with copies 

of the OCE’s Report and Findings in this matter.51 The filing of 

this Report, along with its publication on the Committee’s Web site, 

shall serve as publication of the OCE’s Report and Findings in this 

matter, pursuant to House Rule XI, clause 3(b)(8)(A), and Committee Rules 17A(b)(3) and 17A(c)(2). 

VI. STATEMENT UNDER RULE XIII, CLAUSE 3(c) OF THE 

RULES OF THE HOUSE OF REPRESENTATIVES 

The Committee made no special oversight findings in this Report. 

No budget statement is submitted. No funding is authorized by any 

measure in this Report. 


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11 


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APPENDIX A 
12 


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CONFIDENTIAL 

-,-,~---"-,-,-~-----~~-,-~-----,~-,-~---, 

Subject to the Nondisclosure Provisions ofR Res. 895 of the 11 Oth Congress as Amended 

OFFICE OF CONGRESSIONAL ETHICS 

UNITED STATES HOUSE OF REPRESENTATIVES 

REPORT 

Review No. 13-1064 

The Board of the Office of Congressional Ethics (the "Board"), by a vote of no less than four 

members, on May 31, 2013, adopted the following report and ordered it to be transmitted to the 

Committee on Ethics of the United States House of Representatives. 

SUBJECT: Representative John F. Tierney 

NATURE OF THE ALLEGED VIOLATIONS: Representative John F. Tierney's wife 

managed the daily financial and family obligations of her brother for several years. In exchange 

for her assistance, her brother paid her monthly. From 2007 to 2010, Mrs. Tierney received 

approximately $40,000 to $160,000 from her brother. Representative Tierney filed financial 

disclosure statements from 2008 to 2011 that do not disclose that Mrs. Tierney received earned 

income from her brother. Representative Tierney filed his joint federal income tax returns with 

his wife from 2008 to 2010 that do not include income from her brother. 

If Representative Tierney did not include the source of income earned by his spouse from any 

person that exceeded $1,000 in his financial disclosure statements, he may have violated House 

rules and federal law. 

If Representative Tierney did not include income earned by his spouse in his joint federal income 

tax returns, he may have violated federal law. 

RECOMMENDATION: The Board recommends that the Committee on Ethics further review 

the allegation concerning the financial disclosure statements because there is substantial reason 

to believe that Representative Tierney'S wife earned income from a souree that was not disclosed 

in his financial disclosure statements. 

The Board recommends that the Committee on Ethics further review the allegation concerning 

the federal income tax returns because there is substantial reason to believe that Representative 

Tierney's wife received income that he did not include in their joint federal income tax returns. 

VOTES IN THE AFFIRMATIVE: 6 

VOTES IN THE NEGATIVE: 0 

ABSTENTIONS: 0 

MEMBER OF THE BOARD OR STAFF DESIGNATED TO PRESENT THIS REPORT TO 

THE COMMITTEE ON ETHICS: Omar S. Ashmawy, StatIDirector and Chief Counsel. 
13 


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CONFIDENTIAL 

Subject to the Nondisclosure Provisions ofR. Res. 895 of the 1 10th Congress as Amended 

FINDINGS OF FACT AND CITATIONS TO LAW 

Review No. 13-1064 

TABLE OF CONTENTS 

I. INTRODUCTION .............................................................................................................. 3 

A. Summary of Allegations .................................................................................................. 3 

B. Jurisdictional Statement ................................................................................................... 4 

C. Procedural History ........................................................................................................... 4 

D. Summary of Investigative Activity .................................................................................. 4 

II. REPRESENTATIVE TIERNEY DID NOT DISCLOSE PAYMENTS THAT HIS 

WIFE RECEIVED FOR SERVICES SHE PROVIDED TO HER BROTHER .......... 5 

A. Laws, Regulations, Rules, and Standards of Conduct ..................................................... 5 

B. Mrs. Tierney was Responsible for Managing Her Brother's Financial and Family 

Obligations for Several years .......................................................................................... 6 

C. Mrs. Tierney's Brother Paid Her for tbe Services that She Provided ............................ 10 

D. Representative Tierney Did Not Disclose the Payments in His Financial Disclosure 

Statements or Federal Income Tax Returns ................................................................... 14 

III. CONCLUSION ................................................................................................................. 15 

IV. INFORMATION THE OCE WAS UNABLE TO OBTAIN AND 

RECOMMENDATIONS FOR THE ISSUANCE OF SUBPOENAS ......................... 16 

2 
14 


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CONFIDENTIAL 

Subject to the Nondisclosure Provisions ofB. Res. 895 of the IIOth Congress as Amended 

OFFICE OF CONGRESSIONAL ETHICS 

UNITED STATES HOUSE OF REPRESENTATIVES 

FINDINGS OF FACT AND CIT A TIONS TO LAW 

Review No. 13-1064 

On May 31, 2013, the Board of the Office of Congressional Ethics (the "Board") adopted the 

following findings of fact and accompanying citations to law, regulations, rules, and standards of 

conduct (in italics). 

The Board notes that these findings do not constitute a determination that a violation actually 

occurred. 

I. INTRODUCTION 

1. From 2003 to 2010, Representativc Tierney'S wife managed her brother's financial 

and family obligations because he moved to Antigua. 

2. Patrice Tierney's brother paid her monthly for the assistance that she provided. 

3. Representative Tierney did not report the payments that Mrs. Tierney received as 

earned income in his financial disclosure statements and federal income tax returns. 

A. Summary of Allegations 

4. Representative Tierney may have violated House rules and federal law by not including 

the source of income earned by his spouse from any person that exceeded $1,000 in his 

financial disclosure statements. 

5. Representative Tierney may have violated federal law by not including income earned by 

his spouse in his joint federal income tax returns. 

6. The Board recommends that the Committee on Ethics further review the allegation 

concerning the financial disclosure statements because there is substantial reason to 

believe that Representative Tierney's wife earned income from a source that was not 

disclosed in his financial disclosure statements for calendar years 2007, 2008, 2009, and 

2010. 

7. The Board recommends that the Committee on Ethics further review the allegation 

concerning the federal income tax returns because there is substantial reason to believe 

that Representative Tierney'S wife reeeived income that he did not include in their joint 

federal income tax returns for calendar years 2007,2008, and 2009. 

3 
15 


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CONFIDENTIAL 

Subject to the Nondisclosure Provisions ofH. Res. 895 of the 1 10th Congress as Amended 

B. Jurisdictional Statement 

8. The allegations that are the subject of this rcview concern Representative John F. 

Tierney, a Member of the United States House of Representatives for the 6th District of 

Massachusetts. The Resolution the United States House of Representatives adopted 

creating the Office of Congressional Ethics ("OCE") directs that, "[ n Jo review shall be 

undcrtaken ... by the board of any alleged violation that occurred before the date of 

adoption of this resolution."J The House adopted this Resolution on March 11,2008. 

Because the conduct under review occurred after March 11, 2008, the OCE has 

jurisdiction in this matter. 

C. Procedural History 

9. The OCE received a written request for a preliminary review in this matter signed by at 

least two members of the Board on January 25, 2013. The preliminary review 

commenced on January 26,2013 2 The preliminary review was scheduled to end on 

February 24,2013. 

10. At least three members of the Board voted to initiate a second-phase review in this matter 

on February 22, 2013. The second-phase review commenced on February 25,2013 3 

The second-phase review was scheduled to end on April 10,2013. 

11. The Board voted to extend the second-phase review for an additional period of fourteen 

days on March 22,2013. The second-phase review ended on Apri124, 2013. 

12. Pursuant to Rule 9(B) of the OCE Rules for the Conduct ofInvestigations, Representative 

Tierney presented a statement to the Board on May 31, 2013. 

13. The Board voted to refer the matter to the Committee on Ethics and adopted these 

findings on May 31, 2013. 

14. This report and findings were transmitted to the Committee on Ethics on June 13, 2013. 

D. Summary of Investigative Activity 

IS. The OCE requested and received testimonial and, in some eases, documentary 

information from the following sources: 

(1) Robert Eremian's Tax Attorney; 

(2) Robert Eremian's Criminal Attorney; and 

I H. Res. 895, 1 10th Congo §l(e), as amended (thc "Resolution'). 

, A preliminary review is "requested" in writing by members of the Board of the OCE. The request for a 

preliminary review is "received" by the OCE on a date certain. According to the Resolution, the time frame for 

conducting a preliminary review is thirty days from the date of receipt of the Board's request. 

J According to the Resolution, the Board must vote on whether to conduct a second-phase review in a matter before 

the expiration of the thirty-day preliminary review. If the Board votes for a second-phase, the second-phase begins 

when the preliminary review ends. The second-phase review does not begin on the date of the Board vote. 

4 
16 


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CONFIDENTIAL 

Subject to the Nondisclosure Provisions of H. Res. 895 of the 11 Oth Congress as Amended 

(3) United States Department of Justice4 

16. Representative Tierney produced documentary information to the OCE, but he declined 

to interview with the OCE. He presented a statement to the Board pursuant to OCE Rule 

9(B). The Board determined that Representative Tierney was a non-cooperating witness. 

17. The following individuals declined to produce documentary and testimonial information 

in response to OCE requests and the Board detennined that they are non-cooperating 

witnesses: 

(1) Patrice Tierney; 

(2) Robert Ercmian; and 

(3) Daniel Eremian. 

II. REPRESENTATIVE TIERNEY DID NOT DISCLOSE PAYMENTS THAT HIS 

WIFE RECEIVED FOR SERVICES SHE PROVIDED TO HER BROTHER 

A. Laws, Regulations, Rules, and Standards of Conduct 

House Rule 26 

18. Pursuant to House Rule 26, "the provisions of title I of the Ethics in Government Act of 

1978 shall be considered Rules of the House as they pertain to Members, Delegates. the 

Resident Commissioner. officers, and employees of the House." 

Ethics in Government Act 

19. Pursuant to 5 U.S.C. app. 4 §§ 101, 102 

Sec. 101. (d) Any individual who is an officer or employee described in subsection 

(f) during any calendar year and performs the duties of his position or office jhr a 

period in excess of sixty days in that calendar year shall file on or before May 15 

of the succeeding year a report containing the information described in section 

J02(a). 

Sec. 102. (e) each report required by section 101 shall also contain information 

listed in paragraphs (l) through (5) of subsection (a) of this section respecting the 

spouse or dependent child ()l the reporting individual as follows . .. 

The source of items of earned income earned by a spouse from any person which 

exceed $1.000 and the source and amount of any honoraria received by a spouse. 

except that, with respect to earned income (other than honoraria). if the spouse is 

self-employed in business or a pr()lession, only the nature of such business or 

profession need be reported 

4 The OCE requested and received from the Department of Justice certain public documents that were presented in 

the trial of US. v. Lyons and Eremian. No. lO·lOI59·PBS (D. Mass.). 

5 
17 


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CONFIDENTIAL 

Subject Res. 895 of the I 10th Congress as Amended 

20. Pursuant to 5 u.s. C. app. 4 § 109, "income means all income from whatever source 

derived, including but not limited to the following items: compensation for services, 

includingfees, commissions, and similar items; gross income derivedfrom business (and 

net income if the individual elects to include it) .... " 

21. The House Ethics Manual advises that" '[eJarned' income refers to compensation 

derived from employment or personal efforts . .. Afiler must report the source, but not 

the amount, ()fincome earned by a spouse when that income exceeds $1,000." 

Internal Revenue Code 

22. "Any person who willfully attempts in any manner to evade or defeat any ta.1C imposed by 

this title or the payment thereofshall, in addition to other penalties provided by law, be 

guilty of a felony and, upon conviction there()f, shall be iined not more than $100,000 

($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, 

together with the eosts ()f proseeution. ,,5 

23. "Gross income does not include the value of property acquired by gift . ... ,,6 

B. Mrs. Tierney was Responsible for Managing Her Brother's Financial and 

Family Obligations for Several Years 

24. Details concerning Mrs. Tierney's role in assisting her brother, Robert Eremian, with his 

personal affairs became public when she entered into a plea agreement in the criminal 

case of United States v. Patrice Tierney ("Plea Agreement,,)7 Additional details 

concerning payments that she received for her assistance became public during her trial 

testimony in the criminal case of United States v. Lyons and Eremian8 

25. According to her trial testimony, Mrs. Tierney became responsible for managing the 

financial and family obligations of her brother, Robert Eremian, when he moved from the 

United States to Antigua to work for a company called Sports Offshore in late 2002 or 

526 U.S.c. § 720J. 

626 U.S.c. § 102. The Supreme Court has held that when determining whcther a transfer of property is a gift within 

the meaning of Internal Revenue Code excluding from gross income, "the mere absence of a legal or moral 

obligation to make such a payment docs not establish that it is a gift. And, importantly, if the payment proceeds 

primarily from the 'constraining force of any moral or Icgal duty,' or from the 'incentive of anticipated benefit' of 

an economic nature it is not a gift. And conversely, «w)here the payment is in return for services rendered, it is 

irrelevant that the donor derives no economic benefit from it. A gift in the statutory sense, on the other hand, 

proceeds from a 'detached and disinterested generosity,' out of affection, respect, admiration, charity or like 

impulses." Comm'r of Internal Revenue v. Duberstein, 363 U.S. 278, 285 (1967) (citations omitted). "[I]n making 

the gift-compensation determination, 'the proper criterion ... is one that inquires what the basic reason for [the 

payor's] conduct was in fact-the dominant reason that explains his action in making the transfer.'" Lane v. United 

States, 286 F.3d 723, 729 (4th Cir. 2002)(quotingDuberstein, 363 U.S. at 286). "It is true, of course, that 'the 

donor's characterization of his action is not determinative' Rather, 'there must be an objective inquiry as to whether 

what is called a gift amounts to it in reality." [d. (quoting Duberstein, 363 U.S. at 286). 

7 Information attached to the Plea Agreement in United States v. Patrice Tierney, No. 1O-103IS-WGY (D. Mass. 

October 4, 2010)("Plea Agreement") (Exhibit I at 13-1064_0009-0012). 

8 Testimony of Patrice Tiemey,United States v. Lyons and Eremian, No. 10-10159-PBS (D. Mass. Nov. 21, 2011) 

November 21, 20 II ("Mrs. Tierney Testimony")(Exhibit 2 at 13-1064_0014-0160). 

6 
18 


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CONFIDENTIAL 

Provisions I 10th Congress as Amended 

early 2003 9 Her Plea Agreement states that Sports Offshore was a gambling business 

headquartered in Antigua. 10 

26. From approximately 2003 to 2010, she: (I) managed his personal bank account; (2) paid 

his personal bills; (3) prepared his personal income tax returns; (4) managed his baseball 

season tickets; (5) provided care for his children; and (6) provided care for their mother. II 

27. In October 20 I 0, Mrs. Tierney pleaded guilty to aiding and abetting the filing of false tax 

returns by (1) engaging in a conscious course of deliberate ignorance regarding the true 

nature of Mr. Eremian's income and his ownership of an off-shore gambling business; 

and (2) mischaracterizing the deposits of her brother's bank account as "commissions" in 

documents submitted to Robert Eremian's Tax Lawyer. 12 

Managing Bank Account 

28. During the years that Mrs. Tierney was responsible for managing her brother's bank 

account in Massachusetts (she was ajoint account holderl\ he caused in excess of$7 

million in proceeds from Sports Offshore to be deposited into the bank account. 14 

29. Mrs. Tierney handled the daily management of the bank account, which included 

maintaining dctailed records of all of the account's transactions. IS She learned an 

accounti~~ computer program, QuickBooks, and recorded the transactions with the 

program. 

30. She made deposits into the bank account when hcr brother sent checks to her from 

Antigua. 17 She also drafted checks from the account and made wire transfers from the 

account for various payments. 18 

31. She was responsible for reviewing the bank account statements for accuracy, including 

reviewing to detennine whether credit card payments listed were actually credit card 

payments authorized by Mr. Eremian. 19 

9 Mrs. Tierney Testimony (Exhibit 2 at 13-1064_0035); Memorandum from Pamela J. Lombardini to U.S. District 

Judge Joseph L. Tauro, dated November 19, 2002 (Exhibit 3 at 13-1064 0162). 

10 Plea Agreement (Exhibit I at 13-1064 0010). -

"Mrs. Tierney Testimony (Exhibit 2 at 13-1064_0065); Disposition, United States v. Patrice Tierney, No. 10-

10315-WGY (D. Mass. Jan. 13, 20ll) (,'Disposition")(Exhibit4 at 13-1064 0180-0181). 

"Plea Agreement (Exhibit I at 13-1064 0010). -

\3 Mrs. Tierney Testimony (Exhibit 2 at 13-1064 0058). 

14Id.; Although Mrs. Tierney's plea agreement states that $7 million in proceeds were deposited in the bank 

account, she testified that $5 million was deposited in the account. ld. at 13-1064 0099. 

l5 Id. at 13-1064 0099. -

161d. -

17 ld. at 13-1064 0049. 

18 Jd. at 13-1064-0039,0041,0058-0060,0100. 

!9 ld. at 13-1064=0123-0124. 

7 
19 


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CONFIDENTIAL 

Subject to the Nondisclosure 110th Congress as Amended 

Paying Personal Bills 

32. According to a statement by the government during the sentencing proceeding of Mrs. 

Tierney's trial, she acted as her brother's "personal business secretary.,,20 "A large 

portion of the expenses that came out of this checking account that she managed would 

have paid her brother's business expenses, his travel expenses, his credit card bills, [and] 

expenses related to the operation of this gambling business.,,2! 

33. Specifically, she paid monthly bills for credit cards and periodic bills for telephones and 

insurance.22 

34. She also made multiple payments per year from the personal bank account to the U.S. 

Treasury?3 These payments were for her brother's income tax. She paid approximately 

$2.4 million from the account for taxes during the time period when she managed the 

account24 

35. She also used the account to pay bills for a residential timeshare property in Nantucket.25 

Preparing Tax Returns 

36. Mrs. Tierney used the detailed QuiekBooks records she compiled to prepare her brother's 

income tax retums 26 

37. She provided the QuiekBooks records to Robert Eremian's Tax Lawyer.27 Robert 

Erernian's Tax Lawyer told the OCE that he used the QuickBooks records to assist with 

the preparation of Robert Eremian's income tax filing. 28 

38. According to Mrs. Tierney's plea agreement, "[i]n an effort to conceal the true nature of 

his income, Robert Eremian falsely represented himself as a consultant to Sports 

Offshore rather than the principal of Sports Offshore ... As a result, [Mrs Tierney] 

mischaracterized the deposits to the [bank account] as 'commissions' in documents 

submitted to Eremian' s tax preparer. ,,29 

20 Disposition (Exhibit 4 at 13-1064 0177). 21 Id. -

"Collection of check payments for credit cards, telephones, and insurance (Exhibit 5 at 13-1064 0194-0216). 

"Collection of check payments to the United States Treasury (Exhibit 6 at 13-1064 0218-0249).-

24 Mrs. Tierney Testimony (Exhibit 2 at 13-1064_0101); Collection of payments to U.S. Treasury (Exhibit 6 at 13-

1064 0218-0249). 

25 Mr-;;. Tierney Testimony (Exhibit 2 at 13-1064_0073-0074). 

26 Plea Agreement (Exhibit 1 at 13-1064 0011-0012). 

27 Mrs. Tierney Testimony (Exhibit 2 at 13-10640155-0156); Memorandum of Interview of Robert Eremian's Tax 

Attorney, April 24, 2013 (HEremian's Attorney MOl") (Exhibit 7 at 13-1064 0252). 

"Id. -

29 Plea Agreement (Exhibit 1 at 13-1064_0011). 
20 


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CONFIDENTIAl" 

Subject to the Nondisclosure Provisions of H. Res. 895 of the 1 10tb Congress as Amended 

Managing Season Tickets 

39. Robert Eremian had baseball season tickets for the Boston Red Sox. Mrs. Tierney 

managed these tickets30 

40. Specifically, she drafted checks from her brother's bank account to buy the tickets 

annually 31 She also arranged to sell the tickets to potential buyers.32 

41. She was responsible for distributing the tickets to individuals who her brother directed to 

call her for the tickets.33 

Providing Care for Children 

42. Mrs. Tierney stated in the trial of Daniel Eremian, that she took care of Robert Eremian's 

children when he moved to Antigua34 Her attorney stated during her sentencing hearing 

that Mrs. Tierney cared for her nieces and nephews when her brother "left the three of 

them up here in Massachusetts really in the care of a nanny. The estranged mother, their 

mother, Mr. Eremian's estranged wife, lives in Florida with very serious, historically 

[sic], drug and alcohol problems. She's been in and out of rehab. There was nobody who 

was caring for them. So [Mrs. Tierney] was, if you will, the surrogate mother. You 

know checking on them, buying them their clothes, paying the credit card bills, taking 

care of the house in Lynnfield35 

43. Mrs. Tierney stated that she used her brother's bank account to pay for all of their 

expenses and the house expenses of their home in Lynnfield, Massaehusetts36 These 

expenses included checks she drafted to pay for the school tuition of the children37 

44. Mrs. Tierney also routinely transferred money from her brother's bank account to a bank 

account that she shared with the nanny of her brother's children38 Mrs. Tierney used this 

account with the nanny to pay for expenses for the children.39 

Providing Care for Mother 

45. Mrs. Tierney stated that another task that she did for her brother was to take care of their 

ailing mother40 According to her trial transcript, Mrs. Tierney was "waiting hand and 

30 Mrs. Tierney Teslimony (Exhibit 2 at 13-10640072). 

31 Collection of check payments for baseball season tickets (Exhibit 8 at 13-10640256-0260). 

" Mrs. Tierney Testimony (Exhibit 2 at 13-1 064 0072). By -

3

4 Id. at 13-1064 0065,0133. 

J5 Disposition (Exhibit 4 at 13-1064_0184). 

36 Mrs. Tierney Testimony (Exhibit 2 at 13-1064 0059). 

37 Collection of check payments for school tuitio;; (Exhibit 9 at 13-1064_0262-0264). 

38 Mrs. Tierney Testimony (Exhibit 2 at 13-1064 0059). DU -

40Id. at 13-1064_0065. 

9 
21 


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CONFIDENTIAL 

Subject to the Nondisclosure Provisions of H. Res. 895 of the 11 Oth Congress as Amended 

foot" or her ill mother at the same time that she handled her brother's other financial and 

family obligations41 

46. Mrs. Tierney routinely transferred money from her brother's bank account to a bank 

account that she shared with her mother.42 Mrs. Tierney used this account to pay for 

expenses for her mother.43 

47. Overall, Mrs. Tierney was responsible for a wide range of her brother's daily personal 

affairs, which required an extensive amount of time and effort. 

C. Mrs. Tierney's Brother Paid Her for the Services that She Provided 

Payments Directly from Robert Eremian's Bank Account 

48. According to Mrs. Tierney's trial testimony, from approximately 2004 to 2010, she 

wrote a $1,000 cheek from her brother's bank account payable to herself every month. 

She stated that "I was being appreciated" for "taking care of children that were left 

behind, paying his household bills, his personal bills, and taking care of our mother 

who had cancer. ,,44 

41 [d. at 13-1064 0133. 4' [d. at 13-1064-0059. 

" Jd. at 13-10640148. 

+l Id. at 13-1064~0065. 

10 
22 


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CONFIDENTIAL 

----c-... -.-----

Subject to the Nondisclosure Provisions ofH. Res. 895 of the 11 Oth Congress as Amended 

49. From 2007 to 2010, these monthly payments totaled $39,800.45 The OCE was able to 

verify this amount from copies of checks written to Mrs. Tierney that were produced 

during the review. 46 Mrs. Tierney possibly received additional payments of 

approximately $82,697 directly from her brother during this time period.47 This amount 

is based on a document introduced during her trial testimony summarizing the payments 

that Mrs. Tierney received. 48 The OCE was unable to confirm whether Mrs. Tierney 

received the additional payments because she declined to provide documents that the 

OCE requested. As a result, the Board notes the evidence before it suggests that Mrs. 

Tierney received between $39,800 to $122,497 in direct payments from her brother49 

ROBERT H. EREMIAN ".0.80)(3195 

B~l'f.MA019lS 

1982 

50. In addition, according to a statement of Mrs. Tierney's attorney during her sentencing 

hearing, her brother's bank account paid for her monthly car lease and her mobile phone5o 

45 Collection of check payments to Patrice Tierney 2007 to 2010 (Exhibit 10 at 13-1064_0266-0304). The monthly 

payments were $1,000, except for $2,800 received in May 2008. Id. at 13-1064_0288-0289. 

46Id. 

47 Trial Exhibit 239 from United States v. Lyons and Eremian ("Payment Summary") (Exhibit 11 at 13-1064_0306); 

Mrs. Tierney Testimony at (Exhibit 2 at 13-1064_0062-0064). 

48 Payment Summary (Exhibit 11 at 13-1064 0306). uM -

50 Disposition (Exhibit 4 at 13-1064_0185). 

II 
23 


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CONFIDENTIAL 

~~~~~--'--~ _ .. ~---.-~~~~~-,.~.~ -------~~-.~------~~~,~~- --

Subject to the Nondisclosure Provisions of H. Res. 895 of the 11 Oth Congress as Amended 

51. During the time that Mrs. Tierney managed her brother's personal affairs she did not 

have any employment, except with her company, Tierney Designs51 which generated 

approximately $4,000 to $8,000 of her annual income52 

Payments Indirectly from Robert Eremian's Account 

52. Mrs. Tierney stated in her trial testimony that every month she wrote a $1,000 check 

from her brother's account payable to her mother. She testified thallhe checks were 

"signed over to me by my mom, so that would be put into ... my account. ,,53 

53. Mrs. Tierney stated that the endorsed checks from her mother were "a way to compensate 

me for all that I did for her. ,,54 

54. From 2007 to 2010, these monthly payments totaled $38,000.55 

ROIlERT H. EREMIAN P.O.t!OXJl55 

Payments Described as Gifts 

N~ 1981 

55. When asked whether the payments were "a lot of money," Mrs. Tierney said "Yes. I did a 

lot ofwork.,,56 However, she stated that she was not compensated as an employee57 

51 Mrs. Tierney also wrote checks from her brother bank account to Tierney Designs. See Collection of check 

payments to Tierney Designs (Exhibit 12 at 13-1064 0308-0316). 

" Representative Tierney Financial Disclosure State';;ents for CY 2007-2009 (Exhibit 13 at 13-1064 0318-0349); 

Representative Tierney Tax Returns Schedule CY 2007-2009. -

53 Mrs. Tierney Testimony (Exhibit 2 at 13-1064 0060). MU -

55 Collection of check payments to Mary Eremian endorsed to Patrice Tierney (Exhibit 14 at 13-1064 0351-0388). 12 -
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CONFIDENTIAL 

.~~~-~---~.~.-.. -.--~-----~ ... 

Subject to the Nondisclosure Provisions ofB. Res. 895 of the I 10th Congress as Amended 

56. Mrs. Tierney testified that "I received gifts from my brother for helping him.,,58 

57. None of the legal proceedings involving Mrs. Tierney and her hrother concluded whether 

the payments were gifts or income. 

58. For example, the trial court in u.s. v. Lyons and Eremian did not make any determination 

as to whether the payments were gifts or income. Mrs. Tierney's attorney asked the court 

to instruct the jury about gift tax consequences, and the judge responded "If you believe 

it's a gift. I mean, I'm not getting into that one."S9 

59. Mrs. Tierney testified at the trial that she had conversations with Robert Eremian's Tax 

Attorney about the payments.60 Robert Eremian's Tax Attorney is a friend of 

Representative Tierney, who went to the same high school, college, and law school as 

Representative Tierney.6! Robert Eremian's Tax Attorney told the OCE that he believes 

Representative Tierney recommended that Robert Eremian hire him62 

60. Robert Eremian's Tax Attorney told the OCE that he did not advise Mrs. Tierney that the 

payments from her brother werc gifts63 He recalled that around 2003 Mrs. Tierney asked 

him whether the payments she received from her brother were taxableM He stated that 

his reply was limited to saying if the payments are gifts they are not taxable65 He did not 

advise her on how to determine whether the payments were income or gifts66 

61. Mrs. Tierney testified that she asked Robert Eremian's Tax Attorney about the threshold 

for when gifts became taxable67 Robert Eremian's Tax Attorney did not recall 

conversations about the threshold with Mrs.Tierney, but he recalled such conversations 

with Robert Eremian.68 He explained to Mr. Eremian that the gift tax threshold was 

$12,000 annually.69 

62. Robert Eremian's Tax Attorney told the OCE that he did not advise Mr. Eremian on 

whether the payments to his sister were gifts.70 He stated that Mr. Eremian told him that 

he wanted to give a gift to Mrs. Tierney for taking care of his children and handling his 

checking account.7l Robert Eremian's Tax Attorney left it up to Mr. Eremian to 

"Mrs. Tierney Testimony (Exhibit 2 at 13~1064 0064). 

" Id. -

'8 Id. 

59 Id. at 13-1064 0071. 

60Id. at 13-1064-0066. 

61Id. -

62 Eremian's Attorney MOl (Exhibit 7 at 13-1064 0251-0252). 

63 Id. at 13-1064 0253. - 64 Id. -

65 Id. 

66 Id. 

"Trial Testimony (Exhibit 2 at 13-1064 0066). 

68 Eremian's Attorney MOl (Exhibit 7 at-l3-1 064_0253). 

69 Id. 

70 !d. 

71 Id. 

13 
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CONFIDENTIAL 

Subject to the Nondisclosure Provisions ofH. Res. 895 of the 110th Congress as Amended 

determine whether the payments were gifts. 72 When Robert Eremian's Tax Attorney 

received the QuickBooks records to prepare Robert Eremian's taxes, there was a line item 

for "Gifts for Patrice.,,73 

63. Robert Eremian's Tax Attorney had no recollection of gifts from Mr. Eremian's mother 

to Mrs. Tierney.74 

64. When the OCE asked Robert Eremian's Tax Attorney whether he believes in hindsight 

that the payments from Mr. Eremian to Mrs. Tierney were gifts or income, he stated that 

that the payments were gifts because, based on the Mrs. Tierney's trial testimony and 

news articles that he reviewed, Mrs. Tierney took care ofMr. Eremian's children75 He 

considered this arrangement to have been a familial obligation.76 The witness stated that 

determining whether something is a gift is based on what is in the mind of the donor and 

he believed that Mr. Eremian thought of it as gifts.77 

65. The witness stated he had no direct knowledge to inform his legal opinion, only 

newspaper reports and the trial transcript. 78 

66. When asked about the legal basis of his opinion that the payments were gifts, the witness 

stated that it was based on his years of experience.79 When asked whether he was 

familiar with the case of Commissioner of Internal Revenue v. Duberstein80 and the 

standard of "detached and disinterested generosity," the witness said n0 81 He was shown 

a copy of Duberstein and he stated that he did not consider this standard when he 

formulated his opinion to the OCE about whether the payments were gifts82 

D. Representative Tierney Did Not Disclose the Payments in His Financial 

Disclosure Statements or Federal Income Tax Returns 

67. Mrs. Tierney stated in her trial testimony that Representative Tierney was aware that she 

was managing the bank account for Robert Eremian. 83 

68. On July 3, 2012, Representative Tierney held a press conference to discuss questions 

about Robert Eremian's off-shore gambling business. According to reports of the press 

72 Ed. 

" [d. 

74 Ed. 

75 !d. 

76 [d. 

77 [d. at 13-1064 0254. 78 [d. -

79 [d. 

80 See supra n.6, 

81Eremian's Attorney MOl at 13-1064 0254. 

" Id. -

"Mrs. Tierney Testimony (Exhibit 2 at 13-1064_0068). 

14 
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CONFIDENTIAL 

Subject l'onmSC!(>SUlreProvisions ofH. Res. 895 of the 110th Congress as Amended 

conference, Representative Tierney publicly acknowledged that he knew that his wife 

received payments from her brother for helping out with the family84 

69. Representative Tierney reportedly said "his wife thought she was helping her brother and 

troubled family by paying bills and handling tax payments, and that any payments to her 

were gifts of gratitude for her efforts.,,85 

70. With respect to the amount of payments received, Representative Tierney "rejected 

reports that his wife had received about $220,000 from her brother, saying that the 

amount was closer to $12,000, spread out over years. [Representative J Tierney also 

noted that these gifts would have been non-taxable based on their amounts."S6 

71. As a result, Representative Tierney apparently knew that his wife received payments 

from her brother, but these payments were not disclosed as income on his financial 

disclosure statements or federal income tax returns. 

72. The OCE was unable to verify the extent of Representative Tierney's knowledge of the 

payments because he declined to interview with the OCE. 

73. From 2008 to 2011, Representative Tierney filed his financial disclosure statements from 

calendar years 2007, 2008, 2009, and 2010.87 In each of the financial disclosure 

statements, Representative Tierney lists the source of his wife's income as Tierney 

Designs88 He does not disclose Mrs. Tierney's brother or mother as sources of income 

for any year. 89 

74. From 2008 to 2010, Representative Tierney filed his federal income tax returns jointly 

with his wife for calendar years 2007, 2008, and 200990 He did not disclose the 

payments that Mrs. Tierney received from her brother or mother9 ! 

III. CONCLUSION 

75. From 2003 to 2010, Representative Tierney's wife managed her brother's daily financial 

and family obligations, including his personal bank account, personal bills, income tax 

returns, season baseball tickets, child care, and care for their mother. In exchange for 

these services, Mrs. Tierney'S brother paid her monthly. 

84 Glen Johnson, John Tierney Defends His Wife; Says He Thought In-Laws' Illegal Gambling Business was Legal, 

Boston Globe, July 5, 2012. 

85 Id. 

86 William Laforme, Tierney Rebuts Criticism of Relationship with In-Laws, Salem Patch, July 3, 2012, 

http://salem.patch.com/articles/tierney-rebuts-criticism-o/-relationship-with-in-laws. 

87 Representative Tierney's Financial Disclosure Statements for Calendar Years 2007 to 2010 (Exhibit 13 at 13-

1064_0318-0349). 

88 Id. 

89 Id. 

90 Representative Tierney did not provide the OCE with his Calendar Year 2010 tax return. 

91 Representative Tierney'S Joint Federal Income Tax Returns CY 2007,2008,2009. 

15 
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CONFIDENTIAL 

Subject to the Nondisclosure Provisions ofH. Res. 895 of the 1 10th Congress as Amended 

76. Representative Tierney did not report the payments that his wife received as income on 

his financial disclosure statements or federal income tax returns. 

77. Based on the above findings, the Board recommends that the Committee on Ethics further 

review the allegation concerning the financial disclosure statements because there is 

substantial reason to believe that Representative Tierney's wife earned income from a 

source that was not disclosed in his financial disclosure statements for calendar years 

2007,2008,2009, and 2010. 

78. Based on the above findings, the Board recommends that the Committee on Ethics further 

review the allegation concerning the federal income tax returns because there is substantial 

reason to believe that Representative Tierney's wife received income that was not included 

in their joint federal income tax returns for calendar years 2007, 2008, and 2009. 

IV. INFORMATION THE OCE WAS UNABLE TO OBTAIN AND 

RECOMMENDATIONS FOR THE ISSUANCE OF SUBPOENAS 

79. Counsel for Representative Tierney produced documentary evidence in response to the 

OCE Request, but Representative Tierney declined to interview with the OCE. Pursuant 

to OCE Rule 9(B), Representative Tierney provided a statement to the Board. 92 

80. After receiving the OCE Request for Information, counsel for Mrs. Tierney initially 

agreed to cooperate with the review and informed the OCE that the responsive documents 

had been compiled and would be delivered. 

81. On March 1, 2013, counsel for Mrs. Tierney told the OCE that she would not produce the 

requested information. Counsel also stated that Mrs. Tierney would not interview with 

the OCE because on "October 23,2012, Mrs. Tierney was involved in a serious 

automobile accident and suffered head and neck injuries, with resulting memory loss." 

82. The OCE requested testimonial information from Robert Eremian. On February 7, 2013, 

and April 12,2013, OCE staff spoke with Mr. Eremian via telephone and he indicated 

that he had testimonial information relevant to the review. However, he did not agree to 

interview with the OCE and provide such information subject to 18 U.S.C. § 1001. 

83. The OCE requested testimonial information from Daniel Eremian. Counsel for Daniel 

Erernian told the OCE that he represented Mr. Eremian, but did not respond to the request. 

92 Counsel for Representative Tierney wrote a letter to the OCE with the counsel's summary of the facts, but such 

statements from counsel are not attributed to the subject and are not considered evidence in this review. Counsel for 

Representative Tierney also referred the OCE to a legal opinion from the counsel for Representative Tierney's 

campaign committee that cites to a legal treatise to support a legal argument that the payments from Mr. Eremian to 

his sister for her services are gifts. The Board notes that the legal opinion of the counsel for the campaign 

committee conflicts with U.S. Supreme Court precedent. See supra note 6. The Board also notes that although the 

opinion from the counsel of the campaign committee explains that determining whether such payments are gifts or 

income is a fact specific question, the opinion is not based on any facts from interviews with the relevant parties. 

16 
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CONFIDENTIAL 

Subject to the Nondisclosure Provisions ofH. Res. 895 of the II Oth Congress as Amended 

84. The following individuals, by declining to provide documentary or testimonial 

information in response to the aCE's Request for Information, did not cooperate with the 

aCE's review. 

a. Representative Tierney; 

b. Patrice Tierney; 

c. Robert Eremian; and 

d. Daniel Eremian. 

85. As a result, the aCE was unable to obtain certain information regarding the payments 

that Mrs. Tierney received from her brother, Robert Erernian. 

86. The Board recommends the issuance of subpoenas to Representative Tierney, Patrice 

Tierney, and Robert Eremian. 

17 
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EXHIBIT 1 
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Case 1:10-cr-10315-WGY Document 3 Filed 10/04110 Page 1 of 11 

Mam Rrcepllon: (6J 7) 7-18 .... 

Donald K. Stern, Esq 

500 Boylston Street 

Boston, MA 02116-3736 

Re: IJnited States v. Patrice Tierney 

Dear Mr. Stern: 

u.s. Department of Justice 

Carmen M. Ortiz 

United States Attorney 

District of Mavsachllsetts 

Juhn Joseph ,~fvaklf!)' Unttttd Slates Courthouse 

I Courthouse Way 

Swte 9)OfJ 

BO.~IOI1, ,\4fJssachusetrs (J}:: J 0 

September 20, 20 I 0 

(.( /' 

If)./ 1') ;;J) u) l'-Y I 

This letter sets forth the Agreement between the United States Attorney for the District of 

Massachusetts ("the U.S. Attorney") and your client, Patrice Tierney ("Detimdanf'), in the abovereferenced case The Agreement is as follows: 

I. Change of Plea 

At the earliest practicable date but in no event later than October 8, 2010, Defendant shall 

waive indictmcnt and plead guilty to the Inlormation attached to this Agreement charging her with 

Aiding and Abe,tting the Filing of False Tax Returns in violation of Title 26, United States Code, 

Section 7206(2). Defendant expressly and unequivocally admits that she committed the crimes 

charged in Counts One through Four of the Inlormation, did so knowingly and willfully, and is in fact 

guilty of those of1enses. 

2. penalties 

Defendant faces the following maximum penalties on each count of the Information: 

• 3 years' imprisonment; 

• a line of $1 00,000; 

• 1 year of supervised release; and 

• a $100 mandatory special assessment. 
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Case 1:1O-cr-10315-WGY Document 3 Filed 10104110 Page 2 of 11 

3. Sentencing Guidelines 

The sentence to be imposed upon Defendant is within the discretion of the District Court 

("Court"), subject to the statutory maximum penalties set forth above, and the provisions of the 

Sentencing Reform Act, and the United States Sentencing Guidelines promulgated thereunder. The 

Sentencing Guidelines are advisory, not mandatory and, as a result, the Court may impose a sentence 

up to and including the statutory maximum term of imprisonment and statutory maximulI1 fine. In 

imposing the sentence, the Court must consult and take into account the Sentencing Guidelines, 

along with the other factors set forth in 18 U.S.c. §3553(a), 

rhe panies agree with respect to the application of the United States Sentencing Guidelines 

that in accordance with USSG §2TI .4(a)(2), Defendant's base offense level is 6. 

The U.S. Attorney and Defendant agree that there is no basis for a departure from the 

Sentencing Guidel ines or for a sentence outside the Guidelines under the factors set forth in 18 

U.S.c. §3553(a). Accordingly, neither the U.S. Attorney nor Defendant will seek 2. departure from 

the Sentencing Guidelines or a sentence outside the Guidelines. 

Based on Defendant's prompt acceptance of personal responsibility for the offenses of 

conviction in this case, and information known to the U.S. Attorney at this time, the U.S. Attorney 

agrees to recommend that the Court reduce by two levels Defendant' 5 Adjusted Offense Level under 

USSG §3ELJ. 

The U,S. Attorney specifically reserves the right not to recommend a reduction under USSG 

§3E 1.1 if. at 'iny time between Defendant's execution of this Agreement and sentencing Defendant: 

(a) Fails to admit a complete factual basis for the plea; 

(b) Fails to truthfully admit her conduct in the offenses of conviction; 

(e) Falsely denies, or frivolously contests, relevant conduct for which Defendant 

is accountable under USSG §l B1.3; 

(d) Fails to provide truthful information about her financial status; 

(e) Gives false or misleading testimony in any proceeding relating to the crimina! 

conduct charged in this case and any relevant conduct lor which Defendant 

is accountable under USSG §lBL3; 

(t) Engages in acts which form a basis for finding that Defendant has obstructed 

or impeded the administration of justice under USSG §3CI.I; 

(g) Intentionally fails to appear in Court or violates any condition of release; 

2 
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Case 1:10-cr-10315-WGY Document 3 Filed 10/04/10 Page 3 of 11 

(h) Commits a crime; 

(i) Transfers any asset protected under any provision of this Agreement; or 

(j) Attempts to withdraw her guilty plea. 

Defendant expressly understands that she may not withdraw her plea of guilty if, for any of 

the reasons listed above, the U.S. Attorney does not recommend that she receive a reduction in 

Offense Level for acceptance of responsibility. 

Defendant expressly understands that, in addition to declining to recommend an acceptanceot~responsibili1:y adjustment, the U.S. Attorney may seek an upward adjustment pursuant to USSG 

§3Cl.I if Defendant obstructsjustlce after date of this Agreement. 

-I. ,Sentence Recommendation 

The U.S. Attorney will recommend the following sentence before the Court: 

(a) two years probation with a period of90 days home detention; 

(b) a $2,500 fine; and 

(c) a mandatory special assessment in the amount of $400. 

Defendant agrees that she will provide to the U.S. Attorney expert reports, motions, 

memoranda of law and documentation of any kind on which she intends to rely at sentencing not 

later than twenty-one days before sentencing. Any basis for sentencing wi th respect to which all 

expert reports, motions, memoranda of law and documentation have not been provided to the U.S. 

Attorney at least twenty-one days before sentencing shall be deemed waived. 

During the period of probation, Defendant must: 

(i) Cooperate with the Examination and Collection Divisions of the Internal 

Revenue Service; 

(ii) Provide to the Examination Division alJ linancial inlormation necessary to 

determine Robert Eremian's prior tax liabilities; and 

(iii) Provide to the Collection Division all financial information necessary to 

determine Robert Eremian's ability to pay. 

3 
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Case 1:10-cr-10315-WGY Document 3 Filed 10104/10 Page 4 of 11 

5. Payment of Mandatory Special Assessment 

Defendant agrees to pay the mandatory special assessment to the Clerk of the Court on or 

before the date of sentencing, unless Defendant establishes to the satisfaction of the Court that 

Defendant is financially unable to do so. 

6. Waiver of Rights to Appeal and to Bring Collateral Challenge. 

ta) Defendant has conferred with her attorney and understands that she has the 

right to challenge both her conviction and her sentence on direct appeal. 

Defendant also understands that sbe may, in some circumstances. be able to 

argue that her conviction andlor sentence should be set aside or reduced in a 

collateral challenge, such as pursuant to a motion under 28 U.S.C. §2255 or 

18 U.S.c. §3582(c). 

(b) Defendant waives any right she has to challenge her conviction on direct 

appeal or in collateral challenge. 

(c) Defendant agrees that she will not tile a direct appeal nor collaterally 

challenge any probationary sentence of 24 months or less. This provision is 

binding even if the Court employs a Guidelines analysis different from that 

set forth in this Agreement. 

(d) This Agreement does not affect the rights of the United States as set forth in 

18 tJ.S.C. § 3 7 42(b). Defendant expressly acknowledges that he understands 

the tJ.S. Attorney has retained all appeal rights. 

7. Other Post-sentence Events 

(a) In the event that notwithstanding the waiver provision of Paragraph 6(c), 

Defendant appeals or collaterally challenges her sentence, the U.S. Attorney 

reserves the right to argue the correctness of the sentence imposed by the 

Court. 

(b) If notwithstanding the waiver provision of Paragraph 6( c), Defendant seeks 

re-sentencing, she agrees that she will not seek to be re-sentenced with the 

benefit 0 f any change to the criminal history category that the Court 

calculated at the time of Defendant ' s original sentencing, except to the extent 

that she has been found actually factually innocent of a prior crime. Thus, 

for example, Defendant will not seek to be re-sentenced based on the set 

aside of a prior state-court conviction that occurs after sentencing unless she 

has been found actually factually innocent oflhat prior crime. 

4 
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Case 1:10-cr-10315-WGY Document 3 Filed 10/04110 Page 5 of 11 

(c) In the event of a re-sentencing following an appeal from or collateral 

challenge to Defendant's sentence, the U.S. Attorney reserves the right to 

seek a departure from the Sentencing Guidelines and a sentence outside the 

Sentencing Guidelines if, and to the extent, necessary to reinstate the sentence 

advocated by the U.S. Attorney at Defendant's initial sentencing pursuant to 

this Agreement. 

8. Court Not Bound by Agreement 

The sentencing recommendations made by the parties and their respective calculations under 

the Sentencing Guidelines are not binding upon the U.S. Probation Office or the Court Within the 

maximum sentence which Defendant faces under the applicable law, the sentence to be imposed is 

within the sole discretion of the Court. Defendant's plea will be tendered pursuant to Fed. R. Crim. 

P. 1 J(c)(I)(BJ. Defendant may not withdraw her plea of guilty regardless of what sentence is 

imposed. Nor may Defendant withdraw her plea because the U.s. Probation Office or the Court 

declines to follow the Sentencing Guidelines calculations or recommendations of the parties. In the 

event that the Court declines to follow the Sentencing Guidelines calculations or recommendations 

of the U.S. Attorney, the U.S. Attorney reserves the right to defend the Court's calculations and 

sentence in any subsequent appeal or collateral challenge. 

'I. ~ivil Liabilitv 

By entering into this Agreement, the U.S. Attorney does not compromise any civil liability, 

including but not limited to any tax liability, which Defendant may have incurred or may incur as 

a result of her conduct and her plea of guilty to the charges specified in Paragraph I of this 

Agreement. 

10. &iection of Plea by Court 

ShOUld Defendant's guilty plea not be accepted by the Court for whatever reason, or later be 

withdrawn on motion of Defendant, this Agreement shall be null and void at the option of the U.S. 

Attorney. 

II. ftr!!ach of Agreement 

Il'the V.S. Attorney determines that Defendant has failed to comply with any provision of 

this Agreement, has violated any condition of her pretrial release, or has committed any crime 

following her execution of this Agreement, the U.S. Attorney may, at her sole option, be released 

from her commitments under this Agreement in their entirety by notifying Defendant, through 

counselor otherwise, in writing. The U.S. Attorney may also pursue all remedies available to her 

under the law, irrespective of whether she elects to be released from her commitments under this 

Agreement. Further, the U.S. Attorney may pursue any and all charges which have been, or are to 

be, dismissed pursuant to this Agreement. Defendant recognizes thaI no such breach by her of an 

obligation wlder this Agreement shall give rise to grOlmds for withdrawal of her guilty plea. 

5 
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Case 1:10-cr-10315-WGY Document 3 Filed 10104/10 Page 6 of 11 

Defendant uncerstands that, should she breach any provision of this Agreement, the U.S. Allorney 

will have the right to use against Defendant before any grand jury, at any trial or hearing, or for 

sentencing purposes, any statements which may be made by Defendant, and any information, 

materials, documents or objects which may be provided by Defendant to the government subsequent 

to this Agreement, without any limitation. In this regard, Defendant hereby waives any defense to 

any charges which Defendant might otherwise have based upon any statute of limitations, the 

constitutional protection against pre-indictment delay, or the Speedy Trial Act. 

12. Who Is Bound By Agreement 

This Agreement is limited to the U.S. Attorney for the District of Massachusetts, and cannot 

and does not bind the Attorney General of the United States or any other federal, state or local 

prosecutive authorities. 

13. .Complete Agreement 

rhis letter contains the complete agreement between the parties. No promises, 

representations or agreements ha ve been made other than those set forth in this letter and in the letter 

between the parties dated September J 5, 2010. This Agreement supersedes prior understandings, 

if any, of the parties, whether 'written or oral with the sole exception of those contained in the letter 

dated September 15,2010. This Agreement can be modified or supplemented only in a "'Titten 

memorandum signed by the parties or on the record in court. 

If this [(:tter accurately reflects the agreement between the U,S. Attorney and Defendant. 

please have Defendant sign the Acknowledgment of Agreement below. Please also sign below as 

Witness. Return the original of this letter to Assistant U.S. Attorney Fred M. Wyshak, Jr. 

By: 

6 

Very truly yours, 

CARMEN M. ORTIZ 

Unit::A~ 

~SF.LANG,~ Chief, Criminal Division 

JOHN T. McNEIL 

Deputy Chief, Criminal Division 
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Case 1:10-cr-10315-WGY Document 3 Filed 10104/10 Page 7 of 11 

ACKNOWLEDGMENT OF PLEA AGREEMENT 

I have relUi this letter in its entirety and discussed it with my attorney. r hereby ackrlDwledge 

that i: fully sets forth my agreement with the United States Attorney's Office for the District of 

Massachusetts. 1 further state that no additional promises or representations Mve been made to me 

by tilly official ofthe United States in COlUu:ction with this matter. I understand the crimes to which 

I have agreed to plead guilty, the maximum penalties for those offenses and Sentencing Guideline 

penalties potentially applicable to them. llllll satisfied with the legal representation provided to me 

by my attorney. We bave had sufficient time to meet and discuss my Gase. We have discussed the 

charges against me, possible defenses I might have, the terms of this Plea Agreement and whether 

1 should go to trial. I am entering into this Agreement freely, voluntarilY, and knowingly because 

I am guilty of the offenses to which I am pleading gnUtyand I believe Ibis Agreement is in my best 

interest. 

~/.~ Patrice Tierney 

Defendant 

Date:~ 

I certify that Pa.trice Tierney has read this Agreement and that we have discussed its mewing. 

r believe sbe understands the Agreement and is entering into the Agreemeut freely, voluntarily and 

knowingly. 

7 

~A.Wt'~_ 

~ Attorney for Defendant 

Date (0 /41f 0 
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Case 1:10-cr-10315-WGY Document 3 Filed 10104110 Page 8 of 11 

UNITED STATES DISTRICT COURT 

DISTRICT OF MASSACHUSETTS 

UNITED STATES OF AMERICA Crim. No. 

\'. Violations: 

18 U.S.C. § 7206(2) 

PATRICE TIER.'fEY 

Defendant. 

INFORMATION 

THE U.'IITED STATES ATTORNEY charges that: 

COUNfS ONE THROUGH FOUR 

(Aiding and Abetting the filing of False Tax Returns) 

l. At all times relevant to this Information: 

a. Unlicensed and unregulated sports wagering was illegal in all fifty states, 

and the usc of any facility in interstate and foreign commerce to distribute the proceeds of illegal 

gambling, operating an illegal gambling business, and being a person engaged in the business of 

betting or wagering using interstate and foreign wire communication fadlities to transmit wagers 

and wagering information violated the laws of the United States, including Title 18. United 

States Code, §§ \952(a), 1955, and 1084{a). 

b. Sports Offshore, also known as Sports Off Shore and SOS, was an 

International Business Corporation doing business in St. John's, Antigua. Sports OffShore was in 

the business of accepting wagers on sporting events. Sports Offshore was ostensibly licensed to 

conduct "interactive gaming and interactive wagering," however, that license was terminated in 

July 2009. In truth and fact, Sports Offshore's activities violated the laws of the United States, 

the laV'.'$ ofthe Commonwealth of Massachusetts {Chapter 271. Sections 5, 5A, 16A, 17, and 
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Case 1:10-cr-10315-WGY Document 3 Filed 10/04/10 Page 9 of 11 

17A of the General Laws of the Commonwealth of Massachusetts), and violated the terms of its 

Antiguan lieer.se. The illegal gambling business which operated as Sports Olfshore had its roots 

in an illegal gambling business that was based in Lynnfield, Massachusetts. In approximately 

19Q6. Robert Eremian and others known and unknown to the U.S. Attorney moved the business 

ofli<.:c from LYlmfield, Massachusetts to S1. John's, Antigua; however, the U.S. based network of 

agents and customers remained intact. 

c. Robert Eremian was the owner and principal of Sports Off~hore. Eremian 

is a citizen of the United States who resided in the District of Massachusetts until approximately 

1996 when he relocated the headquarters for his illegal gambling business to Antigua. Eremian 

has maintained a residence and other financial and family interests in Massachusetts and 

elsewhere in the United States while he has resided in Antigua. Eremian managed certain of his 

U.S. based financial interests and family obligations through bank accounts in Massachusetts 

funded by the proceeds of his iUegal gambling activities. 

d. Robert Eremian and others known and unknown to the U.s. Attorney, 

acted together to operate the business of Sports Off Shore for the purpose of, among other things: 

(I) to earn money through illegal gambling activities; (2) to launder the proceeds of illegal 

gambling activities; and (3) to commit various other crimes related to the operation of an illegal 

gambling business. 

c. The defendant P ATRI CE TIERNEY is the sister of Robert Eremian. 

TIERNEY managed certain of Robert Eremian's U.S. based financial and family obligations 

through a Bank of America bank account in the District of Massachusetts that was funded by 

Robert Eremian with the proceeds of illegal gambling activities. TIERNEY maintained detailed 

2 
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records of financial transactions involving this account which were used to prepate Robert 

Eremian's tax returns. 

f. Benevolence Funding, Ltd. was an Anliguan business entity used by 

Sports Offshore to receive the proceeds of illegal gambling from customers in the United States 

who opted to pay their gambling debts by check or wire transfer. Agents of Sports Offshore 

operating in the United States also were instructed to make checks payable to Benevolence 

Funding, Ltd. for the purpose of transferring funds to Sports Offshore. Benevolence Funding, 

Ltd. was the source of certain funds deposited in the Bank of America account managed by the 

defendant PATRICE TIERNEY. From approximately 2003 through 2009, Robert Eremian 

caused in excess of $7 million of proceeds of illegal gambling activity obtained by Sports 

Offshore to be deposited in the bank account at Bank of America managed by the defendant 

PATRICE TIERNEY. 

g. In an effort to conceal the true nature of his income, Robert Ercmian 

falsely represented himself as a consultant to Sports Offshore rather than the principal of Sports 

Offshore. The defendant PATRICE TIERNEY engaged in a conscious course of deliberate 

ignorance regatding the true nature ofEremian's income and Eremian's ownership of Sports 

Offshore. As a resutt, TIERNEY mischatacterized the deposits to the Bank of America bank 

account as "coI11missions" in documents submitted to Eremian's tax preparer. 

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2, From in or before 2005 and continuing through December 2009. both dales being 

approximate and inclusive, within the District ofMa<;sachuselts and elsewhere, the defendant 

herein. 

I)ATRICE TIERNEY 

did willfully aid and assist in, and procure, counsel, and advise the preparation and presentation 

to the Internal Revenue Service, or U.S. Individual Income Tax Returns, form 1040, of Robert 

Eremian for the calendar years set forth below. These returns were false and fraudulent as to a 

material matter, in that IRS Form Schedule C. prepared by Robert Eremian's tax preparer, 

concealed the fact that Robert Eremian was the owner of a business, that the source of the 

income reported was derived from illegal activity, and that certain deductions taken by Robert 

Eremian in his personal capacity were, therefore, inappropriate and should have been reported as 

business expenses on a corporate tax return for Sports Off.~hore. 

Count One 2005 

Count Two - 2006 

Count Three - 2007 

Count Four- 2008 

All in violation ofTitle 26, United States Code, Section 7206(2), 

Date:~!d 

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IN THS UNITED COURT 

':'HE DISTr:tICT OF M.,\SSlI.CHUSETTS 

UNITED STATES 

Plaint-if: 

TODD LYO~S and ;)ANIEL ERE~Ll\N, 

Defendants 

DEFORE THE HO:iOHABLE PAlI::;: FL 

uNTTED 

LEE A. MARZILLI 

DIS'?RICT JUDGe: 

Gnit:.ed States District CO~;::-~ 

Courthouse Way, Court;:-oom 19 

Massachusetts 02210 

21. 9 

VALERI;:; 

OFFICIAL HEPORTERS 

United States District Court 

1 Courthouse Way, Room 77.00 

Boston, HA 02210 

(6:7)345-_ 

Page 

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A P PEA R A ~ C E S: 

Page 2 

FRED M. WYSHA~, JR., ESQ. and ROBERT A. FISHER, ESQ., 

Assistant United Sta~e5 Attorneys, Office of the Uni~ed Sta~es 

A~torney, 1 Courthouse Way, Boston, Ma5sach~setts, 02210, 

for the Plaintiff. 

PSTER CHARLES EORSTJVANN, SSQ., 

Horstmann, LLP, 200 Berkeley Street, Boston, 

Massachusetts, 021:6, for the Defe~da~t, Todd Lyons. 

r-1ARC S. 0IUR:::K, ESQ., Law Offices of Marc S. N'Jrik, 

One East Broward Boulevard, Suite 700, For~ Lauderdale, 

Florida, 3330:, for the Defe~da~t, Da~iel Eremian. 

ALSO PRESEN::: 

DONALD ~. S:ERN, SSQ., LLP, 

10 Prudential Tower, 46th Floor, Boylston Street, BostOD, 

Massachusetts, 02199, for Patrice Tier~ey. 

17 

,8 

,9 

20 

2, 

23 

24 

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Page 3 

I N D E X 

WITNESS DIRECT CROSS REDIRECT RECROSS 

PATRICE TIERNEY 

By Mr. Wyshak: 13-8 

By Mr. Nurik: 13-83 

By Mr. Horstmann: 13-124 

By Mr. t"yshak: 13-127 

By Mr. Nurik: 13-143 

By Mr. Horstmann: 13-146 

By Mr. Nurik: 13-146 

JOHN OLSEN 

By Mr. Fisher: 13-147 

By Mr. Horstmann: 13-196 

" By Mr. Nurik: 13-223 

By Mr. Fisher: 13-239 

By Mr. Nurik: 13-245 

By Mr. Horstmann: 13-246 

15 MICHAEL CAAFFEY 

16 By Mr. Fisher: 13-250 

18 EXHIBITS PAGE 

19 Government: 

20 43 13-168 

21 44 13-182 

22 47 13-183 

23 229 13-184 

24 320 13-226 

25 178 13-252 

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11 

13 

15 

17 

20 

21 

22 

23 

24 

25 

Case 1:10-cr-10159-PBS Document 179 Filed 12106111 Page 4 of 264 

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EXHIBITS 

Government: 

236 

237 

Defendant: 

317 

317-A-for ID 

315 

318 

319 

317-A 

Page 4 

I N D E X (Continued) 

PAGE 

13-253 

13-254 

13-118 

13-118 

13-123 

13-125 

13-127 

13-128 

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PRO C :::; E '1 G S 

Page 5 

THE CLERK: Co~rt calls Criminal Action 18-10159, 

United States v. Lyons, et al. 

THE COUR:: Thar,k YOl:o may be seated. 

MR. WYSHAK: Good morning, you:- Honor. 

THE COURT: We are 5-:.i11 waiting on one ju~or, but 

was told that M~. Wys~ak wanted ~o see me? 

~R. WYSHAK: Yes. Do you wan~ to do this at sideba::::-? 

THE COURT: It's fine wit~ 1:',e. I don't kr.ow what. i-:"5 

about. 

-- SIDE3AR CONFERENCE: 

MR. WYSHAK: These exhibits, 239 and 175 and 176, a~e 

some of the bank records that we've stipulated to the 

aut.henticity. 

2.5 :HE COURT: Okay. 

MR. WYSHAK: I in"::.end to show her SO;:1e. 

:HE COURT: Okay. 

; 8 MR. WYSHAK: Now, the entire exhibit will go ~n 

through Special Agent Lenanski late~ in the day, but I just 

20 want to make sure that we I ~e net going to get slowed dowr: by 

objectio~s. So I want to show some items 

22 THE COURT: Well, I don't know w~y you ~ave to do 

~his -- why don'~ you show i~ to him. 

24 ~R. WYSHAK: I did. 

25 YIR.. NURIK: Our a::::it1..:de is, it's an ::'ssue of the ::-u1e 

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of co~pleteness. If they1re going to put a~ything into 

2age 6 

evide~ce, they should p~t it all i~to evide~ce instead of just 

putti~g in bits and pieces now. 

THE COURT: Well, yo~ can put ~n the rest, or we could 

do it take care of it, but I don't wan~ it slowed down. 

mean, if it's authentic and it's a b~5iness record, I have no 

problem with eit~er the whole thing gOihg in w~th little yellow 

stic~ies or par~ of it. 

By the way, r got yeur obje=tions -- we'll work 

through those -- to the jury instructions. Thank you. That 

was very helpful. Actua:ly, it's mar.ageable, which is good. 

12 It's a to~gh charge. 

MR. WYS~AK: And I filed a brie= yesterday. 

:HE COURT: Two briefs, three. 

MR. FISHER: I filed one oc Friday for Exhibit 61. 

THE COURT: Yes, you're 61. You were Antigua, and 

then you're about ~~eir expert. 

~R. WYSHAK: T~eir expert, right. 

:HE COURT: I ~nderstand ~ha~. I'm glad you had such 

20 a nice weekend. 

21 (Laughter.) 

22 :EE COURT: All right, so I think we sho'-lldn't be 

coming to sidebar because i~ doesn'~ 

24 MR. KUReK: ~o, I understand. 

25 :HE COURT: It feels wrong. Is the last juror here? 

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THE CLERK: I'm going to go check right now. 

(End of sidebar conference.) 

Page 7 

~HE COURT: Bef8re they walk ir., shou~d I in~roduce 

Mr. Stern? He's goi~g ~o si~ r~ght ~ext ~o ~he witness. 

MR. WYSHAK: It's fine wit.r. me, your Honor. 

MR. KURIK: No objection. 

~R. STERN: Yo~r Honor, = wasn't going to sit there. 

I was just going to sit right here. 

:HE COC~T: Wherever you want. 

~R. STERN: Thank you, yo~r Honor. I'm comfortable 

11 right here. 

THE COURT: Do you want to be in~roduced? 

MR. STERN: I may voice an objec~ior. at some point, so 

14 it might make more sense to in~roduce. 

15 THE COURT: Yes, yes, yes. 

(Jury enters the ccur~room.) 

:::HE COURT: Good morning to everybody. 

THE JURY: Good mor:-:.ing. 

THE COURT: W'oy don't you be seated. Did anyone see 

20 anything in the press, do a~y ~esearch, o~ talk to anyone about 

21 this case? 

::HE JURY: 0:0. 

23 ::H~ COURT: No? All ~ight, I find the jury has 

24 complied. And Maryellen, who I s my courtroom depu,,:y, is a woma~1 

25 of very many ski~ls, and se she personally go~ down and 

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Page 

spritzed the chair with oil, so I'm hoping it is now good for 

YC;J all. 

So, al~ right, we're going to call the govern~ent's 

next witness, please. 

MR. WYSBAK: The gove~nme~t calls Pa~rice Tierney. 

PATRICS TIERNEY 

havi~g bee:'-l first duly sworn, was examined and testified as 

fellows: 

7HE CLERK: Could you please state and spell your ::-lame 

10 for the record. 

:HE WIT~ESS: ?atrice :ierneYf P-a-t-r-i-c-e 

T-i-e-r-n-e-y. 

7H2 COURT: Thar.k you. I just want ~o also i~trociuce 

14 you ~o -- this gent~effia~ sitting over there is Don Stern, w~o 

15 is her attorney, and if he pops up for something, = just wanted 

16 you to k~ow who he was. All right, than~ you. 

17 DIRECT EXAMDIATION BY HR. WYSHAK: 

18 Q. Good mor~ing, Mrs. :ier~ey. 

A. Good morning. 

20 Q. Ca~ you ~ell GS how old yo~ are, ma'am. 

21 A. :'m sixty. 

22 Q. And tell us abou-:' your educa'Cio:1al background. 

A. I we:-:t to h:'gh school, and I went to rr.assage therapy 

school. 

25 Q. Okay. And where did yo~ go to high schooe? 

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Case 1:1O-cr-10159-PBS Document 179 Filed 12106111 Page 9 of 264 

13-9 

A. Masconoreet in Topsfield. 

Q. All right. And how about your employment history? 

Page 

A. My enployme~t ~~story, I worked for at~orneys. I worked 

fer a travel incen~ive agency. Then got ~arried, and I'~ now 

employed at a hotel in Salerr .. 

Q. Okay, in what capacity? 

A. r'J.n ba:lquets and weddir:gs ana adwinistrative assistan-:: 

~o the general manager. 

Q. And at one poi~t you had yo~r own business? 

A. Yes, I did. 

Q. And what is that called? 

A. It was called T~er~ey Designs. 

Q. And what kind of b'J.siness Was that? 

A. It was a made jewelry of my own design, and I gave 

15 that up when my ream beca~e ill. 

16 Q. Okay. So you no longer have that business? 

17 A. No, : do not. 

:8 Q. And you're ~arried, ma'am? 

A. Yes. 

Q. And you're ~a~ried to John Tierney; is that correct? 

21 A. Yes. 

Q. And he's a Co~gressrnan? 

23 A. Yes. 

Q. And a lawyer? 

25 A. Yes. 

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Case 1:10-cr-10159-PBS Document 179 Filed 12106/11 Page 10 of 264 

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Page 10 

Q. And prior to that, you were previously married; is that 

correct? 

A. Yes. 

Q. And that was to John Che"n 

A. Allen Chew. 

Q. Allen Chew, okay. And your son, you have a son by that 

marriage, John Chew? 

A. Yes. 

Q. And a daughter? 

A. Carlin and another son Justin. 

Q. Okay. And your maiden name is Eremian; is that fair to 

say? 

A. Yes. 

Q. And Robert Erernian is your brother? 

A. Yes. 

Q. And Daniel Eremian who's here in court is also your 

brother; is that correct? 

A. Yes, yes. 

Q. I want to show you what's been marked Government 

20 Exhibit 174. Take a look at that. 

(Witness examining document.) 

22 Q. Have you seen a copy of that order? 

23 A. Yes, I have. 

21 Q. All right. And do you understand what it provides? 

25 A. Yes, I do. 

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Page 11 

Q. Okay. And can you tell us what yo~ believe it p~ovides. 

A. Well, I bel:eve ~his gives me im .. tnur:ity and tr:a"': I will not 

be prosecuted for anythi~g : say in this cocrtroom. 

Q. ~othi~g you say can be used against you? 

A. Right. 

Q. =5 that fair to say? 

A. Yes. 

Q. You have been prosecuted, towever; is that fa~r to say? 

A. Yes. 

Q. Okay, and in conr:ection with this case? 

A. Yes. 

Q. A~d yo~ pled guol~y? 

A. Yes. 

Q. And what did you plead guil~y to? 

A. pled guilty to aiding a~d abetting and willful blind~ess 

:6 in filing false taxes information to my brother. 

Q. Aidir:g and abetting your brot~er 

18 YlR. NUR:K: Can we jest have a clarification which 

brother. 

20 THE WIT~ESS: Oh, I'm sorry. ~y brother Robert. 

21 Q. You aided and abetted him in filing false tax returns; is 

that correc'C? 

23 A. ;:es. 

24 Q. His pe~sonal tax retu~ns? 

25 A. Yes. 

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Page 12 

Q. And that was re:ated to his operation of Spor~s Off Shore, 

his busi~ess in Antigua? 

A. :t was his personal ~axes. 

Q. Okay. Ar.d what were yeu sente:lced to? 

A. ! was ser.~enced to 30 mon~hs ir. t~e house of detention a~d 

five years -- five mer.ths, Ifm sorry, ~ome confineillent, ~wo 

years probation. 

Q. Thirty days, right? 

A. :hirty days. 

Q. 7hirty days incarceration and five ~8n~hs home detention? 

A. Yes. 

Q. With a period of probation to ~ollow? 

A. Uh-~uh, yes. 

Q. And you Ire currently still on probatior., correct? 

A. Yes. 

Q. All o:-ight. Now, j'Ost to d:cill down a little bit, you said 

17 that you pled gui~ty that you were will=ully b:ind; is t~a~ 

13 correct? 

A. Yes. 

20 Q. And can you tell the jury what you were willfully bli~d 

21 about? 

22 A. My understanding is, I was willfully blind to not asking 

23 enough q'.Jesr..ions as to in:ormation I was pu::::i::-:g into r:,y 

24 bookkeeping system. 

25 Q. Okay, you were willfully blind regardi~g the legality of 

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yo~r brothe='s business, Rober~ Ere~ianTs b~siness? 

A. ';0. 

?age 13 

Q. Okay. Well, you reco;:ded or YOu reported to his tax 

preparer "that his i:::co:r,e was co~,missi:):)s? 

A. Yes. 

Q. Is that: correct? 

A. Yes. 

Q. Ar.d what di.d you uncie:::-stand t:,:ose comrr.issions ~o be from? 

A. Fran his consulti~g 50S. 

Q. And that was not true, ccr~ect? 

A. :t's my belief that i~ was ~ruef that he was a consulta~t. 

Q. Well, what about t~at were you willfully blind abou~? 

A. Could you repeat that, please. 

Q. OkaYI I withdraw it and rephrase it. At the end 0: the 

15 day 

16 A. Yes. 

Q. -- you admit t:~at ~e wasn't a consultant to Sports 0:£ 

Shore; isn't: that true? 

A. didn't adEit that he was not a consultant. 

20 Q. As you sit r.ere today this wit~ess sta~d, do you admit 

~hat he was not a co~su!tant tc Sports Off Shore? 

22 A. He was a consultant ~o Sports 0:£ Shore. 

23 Q. So yO'...1 dQn't was ~e the owner of Spor~s 0:£ Shore? 

21 A. - don'~ know who the ow~e= was. He was a consultan~. 

25 Q. You don't know who the owner is? 

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19 

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22 

23 

24 

25 

Case 1:10-cr-10159-PBS Document 179 Filed 12/06/11 Page 14 of 264 

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A. Ko, I don't. 

Page 14 

Q. Okay, you understa:1d you're testifying here : .. Hlder oath t 

malam, correct? 

A. Yes, uh-huh. 

Q. And that the immunity order does not protect you if you 

lie; you understand that? 

A. Yes. 

Q. You have~'t met with the government in this case; is that 

correct? 

A. Yes. 

You've refused to :neet wi-:.h t;"e gove::-nment attorneys? You 

and I have never spoken before? 

A. ~ot except for my trial. 

Q. Okay, but we've never --

A. No. 

Q. Until -:.odaYr we've never had a dialogue? 

A. :Co. 

Q. Okay. So wter. you stood up before a judge like the Judge 

here in ~his courtroom do you renember that. ciay? 

A. With Judge Yo~ng? 

Q. Yes, ~he judge that you Judge Young? 

A. Yes. 

Q. Okay. You reme~ber you raised your right hand? 

A. Yes. 

Q. Okay. And yO'...l swore to te~l the truth on that date, did 

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Case 1:10-cr-10159-PBS Document 179 Filed 12106/11 Page 15 of 264 

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YOu nol.? 

A. I did. 

Page 15 

Q. Okay. A~d you admi~~ed that you were willfully blind in 

not ascertaining t~e true facts about some of the ~nfor~ation 

that appea~ed O~ your brother's ~ax ~eturns, correct? =snl~ 

that what yo~ pled gui:ty to? 

A. I 1 T. sorry, cou~d you repeat that. I'm a little nervous. 

THE COuRT: YO'J. know w~at, there's a do you have a 

glass of water the~e? 

TH~ WITNESS: Yes, I do. 

TriZ COURT: S.:t bacJ<, take your time. All right, why 

donr~ you as~ the questio~ again. 

Q. When yo~ pled gui_ty before Judge Young, correct 

A. Yes. 

Q . -- you admitted ~hat you were willfu~ly blind regarding 

.16 the truth 0: SOIl:e of c:he informatior. tha::' was on your bro::r.er 

17 Robert Eremian' s tax returns, correct? 

'8 A. Correc'[ . 

Q. And that was ~or multiple tax yea=s, 2005 throug~ 2009? 

20 A. Yes. 

Q. For four yea2: s? 

22 A. Yes. 

23 Q. Okay. So lf12sn't one of the th:'ngs that you adr:1itted --

24 well, withdrawn. Wha::: do yo~ thl,,'" L1at you were willfully 

blind abo'Jt? 

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Page 16 

A. Questioning t~e amo"Gnts of the cor:u71issions tha:: was 

~ecording. I should have asked more ques~io~s as to the 

amO'J.Dts. 

Q. Okay. Well l YOL: desc::::-ibed the a:r,Qunt of ~oney :.hat t-Jas 

reported on tis income taxes as comn~ssions, correct? And is 

it your tes~i~ony t~at you believe t~at ~hose amo'J.r.ts we~e 

incorrect? 

A. : did not believe they were incorrect. I trusted they 

were carrec':: as commissions. 

20 Q. You didn't question the amoun~ of money; is that your 

<::estinony? 

A. I didn'-:=. ques-::ion the money. 

Q. And you didn't questio;:'; the fact that he reported himself 

as a consultar.t, a computer sgec~alist, correct? 

A. Correc-::. 

Q. And you didn't q~estion that e~ther? 

A. : did not, correc~. 

18 Q. Okay. And you t;;nderst:ood that his tax retur:lS did not 

:::-eflect that his income was froI:'" gar:tbling revenue, correc::? 

20 A. Correct. 

21 Q. And you admitted that you engaged in a conscious course of 

deliberate ~gnorance? 

23 A. Correct. 

Q. :8 tha~ true? 

25 A. Correct:. 

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Q. Can you explain to the ju~y what you unde~sta~d that to 

mean. 

A. That I was not paying attention. 

Q. And you should have? 

A. Yes. 

Q. And that was Decause there are these things called 

"red f1ag5,11 right? 

A. Yes. 

Q. Things in life tha~ sort of -- it's like a stoplight? 

A. Yes. 

Q. You kr:ow W!1en you see t!1at stoplight, you know to stop, 

~2 correct? And you ignored those k~nd of signals? 

13 A. Yes. 

i4 Q. Correct? Do you reme:nber being stopped by Immig::cation in 

15 December of 2007, Customs? 

A. Where? 

17 Q. Have you been stopped O1o:::e than once going thrOl;gh 

18 Customs? 

A. Actually, have. 

20 Q. Okay. Ttis was after your trip to Cos~a Rica? 

21 A. Yes. 

Q. You recall that even~? 

23 A. W.:th my husba:ld T yes. 

24 Q. Yes, you::: husband \"'25 with yO'J? 

25 A. It was a business trip, yes. 

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Q. Ok"y. And yael "ere pulled out of line by Cus;:oms, 

correct? 

A. Yes. 

?age 18 

Q. And was that cne of ~hose red flags tha~ you ~issed? =t 

should have pl:t you on notice that there was somethi:1g amiss? 

A. No. 

Q. ~Jell, IV:OY d:'.d you think that Y:lU we'Ce stopped by Customs? 

A. I had learned from my -- even my nephe", he :oad bee" 

pulled. There had been people pulled aside. T:oey pic~ them 

out of -- they pic~ them randomly. 

Q. I s that what YCr:"l believed to be the reason tha:: you we::::-e 

stopped, that it was a ra~dom stop? 

A. I didt I did, did. 

Q. Isn't it true tha~ you~ husband had an arg~me:1t with the 

15 Customs offic!als and demanded to knovl if the :ceaser. that yO"J 

: 6 were pulled out 0: line vJas becac:se your r:1aiden name was 

17 Erenian? Do yo~ recal: ~hat? 

M~. EO~STMANN: Object~on, your Honor. 

19 TEE COURT: Ove'Cruled. 

20 A. No. I'm sorry. 

21 Q. You don't reca~l that? 

22 A. I do not. 

Q. So you don't believe ::'hat you we:re stopped at Customs 

because your brother at ~ha~ time was under investigation? 

A. I do r.ot. 

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Page 19 

Q. Your brother Robert 

MR. NU"CK: Objectior.. 

THE COUR=: Sustained at this point. She doesn't 

know. 

Q. All right, :'d like to stow you some bank records. Were 

you a joint acco1.::ntholder on a Bank of America account witt 

your brother Robert Eremian? 

A. Yes, I was. 

Q. And hOI, :oa"y acccunts were you jointly en with YOClr 

10 brott.er Robert Srerr.ia:1? 

A. I was jo~ntly on his account, just that one. 

Q. Just that one? 

A. Uh-h"Jh, yes. 

l4 Q. Was ~here ar. account that was 'Used to run the LY:lnfield 

IS home? 

A. Yes. 

17 Q. And there was a nanny's name on that account? 

A. Yes. 

19 Q. All right. A:ld your name was on that account? 

20 A. Yes. 

21 Q. And Robert's nane was on that account? 

22 A. wasn't s~re if his was on that account. I believe I 

23 opened it for the household. I believe I called it "household 

2.4 account" alld that Isabella and rr:yself we;::-e O~l the accoun:'. 

25 It's possible. - mean, they were linked througj the bank, but 

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I don't recall if his name was en the state~ents. 

Page 20 

Q. And didn't yo~ have an account for your mother in Florida? 

A. Yes, I did. 

Q. Okay. A!:1d :"sn I t ~ ... ~nJe thae:. YO'.Jr b:::-other T s nar:'.e l,vas also 

on that account? 

A. No. 

Q. Whose na~e was on that accou~t? 

A. My mother 1 s and iliine. 

Q. Did you have an aCCOU:1t at Sove:::-eign Bank? 

A. ~Of _ did :-:lot. 

Q. Did your brother Robert have a~ account at Sovereign Ba~k? 

A. I th~nk initially when he =irst asked ~e to take over for 

13 the family, I ope:1ed one a~ Sovereign Bank wi~h very lit~le 

14 money in it, and then I trans~erred it to -- I don'~ even think 

it was Baril< of America a::' the -:.ime. think it was so~e other 

bank. 

YlR. WYSHAK: YOGr Honor, a:: ::nis time I'd like ::0 put 

sc:'t'te documents from Govern;,cen~ c::x::ibit 175 up on the s:::reer:. 

THE COeRT: All right. 

20 MR. WYSHAK: Car: you pu~ the fi~st item up. Let's go 

21 'Co the first iter.. as opposed to the summary. 

Q. All right, do you see ~tat this account ends, if you look 

23 at the deposit slip at the bottom, 0933? 

24 A. Yes. 

25 Q. And at the ti~e it was a Fleet Bank? 

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16 

20 

21 

22 

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Page 21 

A. Yes. 

Q. And Fleet got Furc~ased by Bank of America ultimately! 

correct? 

A. :;:: believe so. 

Q. And is this the account that you were jointly on with your 

brother Robert? 

A. No, because that was a no. On the Fleet account? 

Q. Well, on the account ~hat ultimately was -- at so~e time 

Fleet gets bought by Bank of America, correct? 

A. I agree, and we ope::::ed a fresh account when started 

doing his personal bookkeeping. This deposit slip is no~ 

familiar to me. don1t even remenber t~e 

the address. 

Q. Okay, can we put up -- do you see that deposit slip? 

A. I do. 

Q. Is t~at your handwriting? 

A. No. That's my brct-he::::-1s har:.dwriting. 

Q. Okay, now tha~ says Bank of A~ericaf correct? 

A. It does. 

Q. All ~ight, ar.d that 1 s that sa8e account nu~ber, 0933? 

A. Yes. 

Q. And at this period of time l yo~ agree that you were 

manag~ng this acco~nt for him, correct? 

A. Yes. 

Q. All right, when did you begin managing the account for 

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him? 

A. 2003, maybe end of 2002. 

Q. Okay. Ar:d how did that come about? 

Page 22 

A. It ca:-:te about w~e:1 he, uh:n, he needed so:r::eone who he CO<1.LO 

trust to pay his bills, to get them to the post office a~d pay 

~hem timely. His ch~ldren were not respo:1sible eno~gh to go to 

the post o:fice a~d get bills. His wife was in rehabilitation 

in Florida a::. the tir..'.e. He }(new he wou:'d be 'Crave2.ing back and 

forth with 'Che permissio~ fro~ Judge 7auro to An~igua, Florida 

10 to see his wife, and be back and forth to see his c~i:dren, 

11 w~oever remair.ed in ~ynnfield. So there was Dot o~e p~ace ~e 

could ge~ his mail, so I was in charge of paying his personal 

bills a~d the house~old bills. 

14 Q. Okay. And w~ere did those bills go ~o? 

,s A. 3is persona: bills went to a post office box in 3everly 

~O beca~se tha~'s what his probation residence was, Beverly. 

17 Q. Okay, but he was not residing in the United States at the 

1.8 time? 

19 A. At the time of proDa~ior.? 

20 Q. Yes. I~ 2003 wten you began managi~g this accou~t --

21 A. Yes. 

22 Q. -- was he residing in the United States? 

A. Par-:-tiIT.e. 

24 Q. Okay. Well, what was his ~esidence? 

25 A. His residence was he was req',...lired to stay with my :nom 

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Page 23 

in Lyr:nfield -- I mean, i:-lr I 'rr~ sorry, Beverly du:::-ing his 

probation time, and he was ~raveli~g bac~ and forth to Antigua 

for b~siness and F:orida to check or: his wife and one 0: the 

children ~hat ~oved dcw~ ~here. 

Q. Okay, so when you say he was required to stay with ~is 

mem, where was ~ha~? 

A. Whe:::-e was it? 

Q. Yes, 

A. It was at Beverly Commons l:l 3ever2.y. I::'s a condo. 

Q. Okay. He wasn't living in the house in i,yn:1:::'e2.d? 

A. -" 

~" Orie of his children were he2::'e, he might go over there, 

but he was ::::-esidir,g with my I:"'.om. 

Q. Okay. Ar.d 1;e had his IT,ail delivered to a post o:£ice bOXi 

14 is that correct? 

A. :he family bills went to a post cf:ice box so I could ~eep 

them separa~e. His own --

Q. Did the checking account in~ormation go to his post office 

box? 

19 A. Yes. 

20 Q. And who would go to the post of~ice bex to pick the nail 

21 up? 

22 A. I would. 

23 Q. :'m going to ask you a qcestio~ abou~, if you look at this 

24 particular check, which is for 828,000, do you see ~hat 

25 notation in the memo sectio:1 that says "BfO Benevolence"? 

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A. I do now, yes. 

?age 24 

Q. Okay. Are you familiar with that entity, Benevolence? 

A. No. 

Q. No? 

A. I was first asked about it by my attorney when 

THE COURT: You don't need to tell us what your 

attorney 

THE WITNESS: Oh, I'm sorry. 

Q. Well, in fact you deposited checks that came from 

Benevolence Funding, didn't you? 

A. I don't recall the checks being called from the 

Benevolence fund. 

Q. And you in fact drafted a check to Benevolence Funding, 

14 didn't you? 

A. I don't recall. 

MR. WYSHAK: Can we put 249 up on the screen. 

Q. Do you see that? 

18 A. I do. 

19 Q. Okay, so this is a bank check, correct? 

A. Yes. 

21 Q. And do you see at the top it's got your name on it? 

22 A. I do see that. 

23 Q. And it's dated August 9 of 2004, correct? 

24 A. Correct. 

23 Q. And that's a check for $250,000, correct? 

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A. Correct. 

Q. Made payable to 3enevole:1ce FU:1ding? 

A. Correct. 

?age 25 

Q. So YOll went to tje bank and. bo:..::g::t t::a-: check, right? 

A. I don':: knovi that I bougie:: it. Maybe ::he::e were funds in 

the accoun~ that --

Q. Well, you --

A. :tls not a bank check, obviously. 

Q. You purchased this check you used funds from the 0933 

10 aCCOU:1t, correct 

A. Cor::ect. 

12 Q. which whe~ it was still Fleet? Now do you ac~nowledge 

that you were managing the account when i~ was at Fleet 3ank? 

14 A. Yes. 

Q. Okay. And yO'J took $250,000 from the account and bought 

this check, correct? 

A. Yes. 

Q. All right. A~d you'~e the one who made ~~ payable to 

:9 Benevolence ?u:1ding, correc~? 

20 A. Well, the bank did, bu~ ~ust have given ~hern the order. 

22. Q. All right, yo~ gave the ba~~ instructions? 

A. I donr~ recall this check, but, yes. 

Q. Okay. WeI'::', wha: :J.id you -:Jr.ders::and Benevolence Funding 

24 to be? 

A. did~'t unders~and ~~ t~ be anything. "las se:1ding a 

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check to my brother. 

Page 26 

Q. Okay, where d~d you get t~e na~e Benevolence Funding froTI? 

A. He mus~ tave given it ~o me. It wasn't a frequent name. 

Q. Did you have a~y u~dersta~di~g a~ all w~at ~is connection 

tc Benevolence Funding was? 

A. did root. 

Q. Wha:: did you th:":1k it was at the tir:-.e? 

A. I didn't thir:k cuch of it. 

Q. Well, Yol<r brothe::: says, "Send me 5250,000.11' That's a ::'0-:' 

.:0 of mo:oey, ocight? 

A. Yes. 

Q. And ~a~e the check payable not to Robe;:t Erer:-.ian, correct, 

but ::0 this entity Benevolence Funding? 

14 A. Right. 

15 Q. Correct? And you don't question that? 

16 A. 010. 

Q. _~ S8U:1ds like seme kind of c:laritable organization? 

A. It d8es. 

19 Q. :sntt ::his one of those red flags that you were talking 

20 about whe~ you pled g~ilty, Mrs. Tierney? 

A. :t's p8ssible a red flag. I should have asked wtat 

Benevolence f~nd was. 

23 Q. Right, because you knew t~at your brothe~ had a crimi~al 

24 ::ecord, correc:'? 

A. Correc::.. 

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Page 27 

Q. And ~hat he was ru~ning an illegal ga~bling busi~ess in 

Massachuset~s before he went ~o A~t:gua, correc~? 

A. Cor::::-ec-::.. 

Q. And yO'.J. k:lew t~,a': he was yur:nit"::g a ga:;nblir.g Dusi::ess in 

Ant:gua, co~rect? 

A. Correct.. 

Q. And he war.':s mer-ey now, $250,080, and he doesn't war.t the 

check made out ~o hi~, cor::::-ect? 

A. C:orrect. 

Q. And you don't ques':io~ that? 

A. :\0. 

Q. Is it because you didn't want to know? 

A. Xo, it's ~ot that I didn't wa:lt ':0 know. I jus:: wrote ~he 

checks tiat he asked me to write --

Q. Okay. 

A. whether it be for chayity or school or anything. 

Q. Is that what you thought it was, for charity, $25~,ODO? 

A. t-Jell, Benevolence is not something'" would expect [\'.y 

brotter to use for a name of so~et~ing. ~ did~'t ~~ow what it 

20 was. 

Q. yo~ didn't ~hink he was donating $250,000 to charity, did 

22 ycu? 

23 A. Uhm, it's possible. 

24 Q. 1::15 possible? 

25 A. Yes. 

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19 

20 

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Case 1:1O-cr-10159-PBS Document179 Filed 12106111 Page 28 of 264 

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Q. That's yoc~ testimony? 

Page 28 

A. Yes. He's made large donat~ons to a lot of charities. 

Q. $250,008 a~ a time? 

A. C~m, $100,000 Q_ a ti~e. 

Q. And what char~ty did he do~ate $100,000 to at one ti~e? 

A. - believe at o::e time the:.-e was -:he "':5unarai fund. I dC:1't 

recal: the name of the fund, aCld at another time to the Bill 

C:inton Foundat~on far ~ believe t~at was ~he ear~~quake 

nO I the h~rricane victims. 

Q. Did you draft those checks? 

A. : dic. 

Q. Out of wha:-. account? 

A. Out 0:: n:.y -- O'c:t of his perso:1al accoun::'. 

Q. Out 0:: this 0933 aCCOU:lt? 

A. Yes. There were two checks, T believe, for $100, each 

to the Cl~nto~ Fou~datio~. 

Q. Ca:!. we put up is that yo~r handwriting on that deposi~ 

slip? 

A. Yes. 

Q. Okay. So now this ~s August 0:: 2003, correct? 

A. Yes. 

Q. And this is a SlOO,COO check, and it's clear that this is 

coming from Antigua? 

A. Yes. 

Q. Correct? And t~is is some of the inco~e that you would 

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~e90rt to the tax prepare~ tha~ was com~ission, correc~? 

Page 29 

A. It was either com;;,~ssion or money to pay :.axes. Quarterly 

I would ge~ an amou~t ~rom the =ax atto~ney that --

Q. :ry ~o answer the q~es:'ion. 

A. :;:'11 sorry. 

MR. NURIK: Objection. She's a~swering the q~estion. 

:SE COURT: What's the questio~ again? 

Q. :1:e money ::hat you were receivir:g from your brother from 

Antigua --

A. Yes. 

Q. you were reporting as income, correct? 

A. Yes, correct. 

Q. :0 his tax preparer? 

A. Correc':. 

Q. Correct? And you described this income to his tax 

J 6 preparer as commiss iO!1s, corre::::':? 

17 A. Yes. 

Q. And that was rela~ed ~o Sports Off Shore, correct? 

A. His cons~lting. 

20 Q. His consul::ing ror Sports Off Shore? 

21 A. Yes. 

22 Q. So you knew that this rr,o:1ey was re2.a-:'ed to the ga!":'.blir:g 

business in A~-:'igua, correct? 

A. For his cons'....1lting the ga;r.bling b--.lsiness, yes. 

25 Q. Okay, do you still believe he's a consul":ant -- as you sit 

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Page 30 

here today on this witness stand, are yo~ telli~g this jury 

unde~ oath that you~ brother is a co~sultant ~o Sports Off 

Shore? 

A. Yes. 

Q. Okay. How fC'.any ".:imes have you beer: to Antigua? 

A. Maybe five. 

Q. Five? Okay. And have you s~ayed at the place where the 

busi~ess is operated? 

A. 'Ies. 

Q. All right. And it's clear w~en you're t~ere wha~ls going 

11 on, isn't it? 

A. :":0. 

j 3 Q. No? Okay. When you walk in the front door to ~his 

building, isn't there a glass wa:l, behind which are ~umerous 

people and co:::-~puters ana televisio:-" IT.o:1itors? 

16 A. :\0. 

Q. ':(o? 

A. No. 

19 Q. What do you thi~k you see whe:1 you walk in this b~ilding? 

20 A. Well, r.umber 0;:18, the:::-e's roo front door. Yo'.} walk in 

21 ~hro~gh the garage and you enter a large enclosed patio, whict 

you ca~ go off eit~e~ -- there 1 s no doors it. Ana there's a 

23 coom to the front, a kitchen in the back, and a bedroo~ above 

24 the garage and anothec bedroom in the back. 

Q. OkaYI did you ever see peo?le working there at cO::lputer 

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monito:::~s ? 

A. I saw people working at cO!:'.puters. 

Q. Describe where in the ~uilding you think ttat was. 

Page 31 

A. :'r:a-:=. was be::\."reen t~e patio wte.;:e we would socialize ar.d 

the t::itcne::1. 

Q. Okay. Is ~hat a room? 

A. Is it a ::::-001':'.? 

Q. Yeah. 

A. Yes. 

Q. Okay. Isn T t t'.:1at "the :-:'.ain rOOh, w::en you enter t;';'e 

11 buildir.g? 

A. No. The main room is an outdoor ~oom. :tfs a::1 outdoer 

recep~ion a~ea where we sat.. 

Q. :hatrs a roc~, an o~tdoor patio? 

15 A. Yes. I~ had furniture and tab:es a::1d chairs and --

Q. Did it have a rco~? 

A. "fes. 

18 Q. At some point do you ente:::- a real building witr. wal-=..s and 

cei:ings 0:£ that patio? 

20 A. Yes. considered this a real bui:ding, an enclosed pa~io 

21 it: someone I s hO::le. 

22 Q. Mrs. Tier~ey, can you please describe the area where yo~ 

saw people on COr:',p'c..1ter r,>.oni-:0::: s . 

24 A. It was a room with people with co:,:\put:.ers and televisions. 

25 Q. And how many people? HQW many people have you seer. the:::e 

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on the occasions you've been? 

A. Maybe four to six. 

?age 32 

Q. Four to six? 

A. Uh-hut, yes. 

Q. No more than that? How ma:lY computers did you see? 

A. They each had a computer. 

Q. Were there 8ther computer stations that werer..tt occ\Jpied? 

A. A few. 

Q. Wece there TV monitors? 

A. There '>,vere :Vs. 

Q. Is this where Spo~ts Off Shore, the business, was 

12 operating from? 

13 A. Excuse me? 

14 Q. Is ~his where your brother Robert Eremianfs b~siness was 

opecating from? 

A. ThatTs I believe so. 

Q. Okay. Was he in charge? 

18 A. I never saw hir.1 in cha:cge. 

Q. What did you think his role was? 

28 A. He helped Wi.L1 the co;npc.;ters alCd the software. 

Q. The comp~ters? Did ne reside in the home? 

A. Yes. 

23 Q. In that buildL"lg? 

A. Yes, he did. 

25 Q. Okay, so that was his personal residence? 

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Page 33 

A. Yes. 

Q. Okay. And the b'Jsiness is operated out of that: personal 

~esider.ce, correct? 

A. Correct. 

Q. But he's not ~~e ow~e~ of the business according to you? 

A. I neve:c knew who the owner of the b .... lsiness was. 

Q. Well, who did you t~ink it was? 

A. I did~'t thi~k too Iuch abo~t it. 

Q. Did ~e ever introd~ce yo~ to his boss? 

A. 0;0. 

Q. Did you ever see a~ybody who was giving him instructio~s 

or: what to do? 

A. 0;0. 

14 Q. v.,Touldn I t that be a sigr. that. 'he was not t.he owner I l.c 

somebody else was te~ling hi~ what to do? 

A. tho~ght a consultant cou~d be self-e~ployed. He's he 

17 didn't have a boss. 

Q. All right, well, let's talk a~out that. He 1 s 

19 self-employed as a cons'...1ltant to a business that he r:'E1S o'Jt 0: 

20 his priva~e home, correc~? 

A. ~hat is i~ his ?rivate home. 

22 Q. That is in his priva~e ho~e, D~t ~ets no~ --

23 A. I didn 1

t say tha~ he runs it. You said that. 

Q. Okay. Well, he's self-employee. as a consultant to a 

business which is operated out of his private home? 

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A. Correc::.. 

Q. And you did~lt think he owned tta~ business? 

A. "0. 

Q. But you don I t kr:ow who did? 

A. "0. 

Q. And this is yo~r brother, right? 

A. 'Yes. 

Q. .somebody you've kr.oW:1 all your li.::e? 

A. Yes. 

Q. And yo~ never talked to hiffi about, n:snl~ this your 

business?" 

?age 34 

A. He said ttat he ow~s the software ~O~ the business, which 

13 I believed. He' 5 very good with so:::.ware. 

Q. Did you ever tave a conversa~icn with your brother Robert 

15 about who owned the business? 

A. : believe I did a::. one ti~e as~, and he said, "r don't own 

11 ::.he business." 

18 Q. Did he tel: you who did? 

A. "0. 

2C Q. Was there any indica~ion ~hat somebody else owned the 

21 nusiness that you could observe? 

22 A. 

Q. There's a lot of money goi~g into this 0933 accountr 

correc'C? 

A. 'fes. 

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Page 35 

~. Would i~ surprise you that over the years that YOG managed 

the account, there's almost $5 millio~ deposited in ~his 

accc:.:Int? 

A. Woulci it surprise me, is ~hat what you said? 

Q. ~esf $5 ~il:ion? 

A. That's about correct probably. 

Q. Okay. And is it your test:,w:oy that yael believe that he 

earned that ~oney as a so:~ware co~s~:~an~? 

A. Yes. 

It's a lot of money ~or a sof~ware consulta~t, isn't it? 

A. Yes, i~ is. 

Q. All right. I'rn going tc show you 

MR.. WYSHAK: Can we p'vlt t::e monitor on, your Honor, 

14 the 2LMO. 

Q. Can you see that check, Ms. Tier~ey? 

A. Yes. 

17 Q. :s tha~ your wri~ing on the face of the check? 

A. ~o, it's n8t. 

Q. Is tha~ your e~corseme~t O~ t~e back? 

20 A. It looks like my brother's signature. 

21 Q. You think that's yo~r b~other's endorsement? 

22 A. tvell, si;nilar. 

?-3 Q. When these checks w8~ld ge~ deposited in the bank --

24 A. Yes. 

25 Q. how did that occur? 

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Page 36 

A. :td ~ake a deposi~ slip out and br~ng ~hem to ~he bank. 

Q. Okay, so tow wo~ld yo~ ge~ t~e check? 

A. It would be se~t i~ an envelope to my house. 

Q. :0 your home? 

A. Yes. 

Q. ~o~ to the post office box? 

A. No, beca'J.se it had to be signed for. 

Q. All right, so he would send yo~ a check in ~~email from 

Antigl:a? 

A. Yes. 

". Already endorsed like this? 

A. No, cot always. 

Q. Okay, sc~e~imes you'd endorse it? 

A. 

:HE COURT: Is ~hat "yes"? 

?HE W!INESS: Yes. 11m sorry. 

Q. And you would take the chec~, fill out a deposit slip, and 

:.8 deposit it in the accoum:? 

A. Yes. 

)0 Q. And th~s is another one of those checks with that 

21 Benevolence in ~he memo section, correct? 

22 A. see it. r.ow, yes. 

23 MR. WYS:JAK: Can we put up the summary exhibit.. 

24 Q. Okay, so th':"s ':'s a summary of the deposits that went in::o 

25 this account. that ca::le :rom A:lt.':'gt:a, and I assume that you --

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Page 37 

if you take a look at those transactions, you donTt dispute --

if we can go to the second page -- that ~hese were funds that 

were going i~to the accou~t that yo~ ma~aged? 

A. don't recog~lize all ::he dates, but i"t: appears that they 

all went into t~at account. 

Q. Okay. Ar:d at some point yael can see that the checks f:::om 

Benevoler:ce ?undir.g seem to stop around 2006? 

A. Yes. 

Q. And Mr. Ere::nian, Robert :Sre:.lia:1, starts using wire 

10 transfers? 

A. Correct:. 

Q. Right? And they're coming fron Veutsche Bank? 

13 A. I believe they \vere several banks. 

Q. Okay. ;:)0 you knoltl \'lhy in 2006 he stopped sending you 

che~ks to be deposi::ed and started transferring ~oney thro~gh 

Surope? 

A. I have no idea. 

18 Q. Did you ever discuss that with 

19 A. No. 

20 Q. Did he ever tell you, "I'm not going to send you these 

21 checks any:nore n ? 

22 A. No. I tho'-Jght he was maki:1g it easier for- me just vlirir:g 

~ -<.. in. 

24 Q. Your husba:-:d had accompar:ied you ~o Antigua? 

A. Pard or: me? 

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Q. Your husband had accompanied you to Antigua? 

A. Yes. 

Q. How mar:y tir:les? 

A. T1fJice. 

Page 38 

Q. And he was present and observed the operation at SOS? 

MR. NUR:K: Your Hcno~, I objest as ~c relevancy o~ 

this. 

THE COURT: Overruled. 

Q. Yes? 

A. He dined there. 

Q. Okay, can you try to answer the ques~ion. asked you, 

was he present 

TEE COUrtT: So based only on what yC'J saw. 

A. io.Jha-:' I saw, he sat down and we had di!1ner. I cou:dn't see 

through a wall. 

Q. lsn1t it a glass wall? 

A. ~hink it's a glass wall. haven't been there in 

many years. Maybe it is a glass wall now. I~ sorry, I don't 

:cecaL'. . 

Q. Would it refresh you~ recollection if : ~old you tha~ 

21 numerous witnesses have testified it's a glass wall? 

22 A. thatTs ~heir obse~vance. It just wasnTt my focus. I'm 

23 sorry. 

24 Q. Visible from the dining area, correc~? 

A. (The witness nodded affirmatively.) 

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Q. You have to answer orally. 

A. Yes. I'm sorry. 

Q. It was visible from the din~~g area? 

A. ~he wall, yes. 

Q. The glass wall? 

Page 39 

A. 11m saying do~'t recall it being a glass wall. II~ 

sor-::y. 

Q. :5 ic yo~~ testimo~y ~~at your husband did not observe 

people operat~ng co~?uters? 

~R. ~URIK: Objeocion as to re~evance. 

THE COURT: Sustained. Sustained at this point. 

Q. Did your husband when he was w:t~ you in Antig~a observe 

people working for 50S? 

MR. KURIK: Objec~ion. 

THE COURT: SG5tained. 

Q. Were you prese:lt with him at a locatior:. where you -observed 

people working for SOS? 

MR. N0RIK: Objection. I~IS the same thing. 

THE COURT: Overruled. 

A. Could you -=ephrase t~at, please. 

Q. Sure. You told us you and 1;.8 dir.ed there? 

A. 2:'es. 

Q. At the time yO"u di:1ed at your bro-:'he:;: I s hOli.Se, were the:;:e 

24 people there wo:::-king :or 50S? 

A. Kot that I observed. 

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Q. Not that you observed. 

A. I was di~ir.g. There was a wall. I was dining. 

Page 40 

Q. While ycu were -:.r.ere, did you ever observe people working 

for SOS? 

A. = observed people sitting at comp~te~s. 

Q. Okay. Was your h:'1sband with you wne:1 you made that 

observation? 

A. No. 

Q. :n terms of proximity to ~he d~ning area, where we~e those 

10 people sitting at computers? 

A. Probably the dista;]ce from me to you. 

12 Q. Okay, it's not ~ike i~lS --

A. Maybe :urther. 

Q. So it's fairly close proxi~itYI correct? 

:5 A. I g~ess it was -- it didn't seem close ~o ~e. 

Q. Okay. A:-"d wha-:. time do yO'-1 dine in Antigua? 

A. We dine at a very early hour because we all go to bed 

18 early, probably 6:00, 6:30. 

Q. And those are pr 1me garr.bli:lg hours f arer:. f t they? 

20 A. : don't know. _ dO:-l T -::. gam:Ole. 

21 Q. You don 1 t know. You do kGow, Ms. Tierney. 

22 A. 

23 MR. NURIK: Objection. 

"4 :HE COURT: Sustained, sustained. I strike the 

Q. Your b::::-other has been invo:J..ved in illegal ga:nbling 

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business for how lo~g? 

A. I do~'t know ~ow many yea~s. :'m so~ry. 

Q. Take a guess. 

MR. KURIK: Objection. Can we just ~ave a 

clarification, bro~her. 

Q. Robert Eremian, correct? 

Page 41 

A. I don':. kr:ow how marcy yea:-s. - caD':: give you the ::lumber 

of years. If~ sorry. 

Q. Abo~t ~8W long ao you t~ink? 

A. Fifteen, twenty years. 

Q. Yo~r ~ather was involved in that business with your 

brother be~ore your father passed away? 

A. I don't: believe my :ather wori:sd with my b::::-other. He gave 

14 my father a place to sit. I never obse.:::-ved my dad worki:1g. 

,5 Q. ;)0 you thir.k YoL;r mother knew whether or no:. YO'J.r :ather 

16 worked? 

~R. NUR:K: Objection. 

:HE COURT: S~stained. 

Q. Well, did you ever have a conversation with your ~o~her 

20 about whether or not yo~~ fathe~ started ~his busi~ess a~ a 

bowli~g a:ley in Peabody? 

22 MR. KUR!K: ODjec~ion. 

23 A. )Jever. 

24 TH~ COURT: Sustained. 

25 Q. You never had tnat conversation? 

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A. Never. 

MR. NURIK: Objection. 

THE COURT: Sustained. 

Page 42 I 

Q. How abo~t your SO~, did he work for your brother Robert 

Eremian? 

A. Yes, he did, ~y son John. 

Q. Okay. And how about your brother Dan, did he work for 

your brother Robert Eremian? 

A. Not to my knowledge. 

Q. Not to your knOl,ledge. Never? 

A. Not to my knowledge. He had a restaurant he ran. 

Q. Would it surp!'ise you if your son knel< that your brother 

13 worked 

14 MR. NURIK: Objeotion. 

15 THE COURT: Sustained. 

]6 MR. WYSHAK: Well, I thin,", loan --

Q. Are you aware of the faot that your son knol<s that your 

18 brother works :or Robert Eremia:1? 

19 MR. NURIK: Objection. 

20 TEE COURT: Sustained. 

21 MR. l'IYSEAK: = can ask her if she has --

22 TEE COURT: Sustained. 

23 Q. Are you al<are of the fact that your daughter Carlin knol<s 

24 that your brother I<orks for Robert Erenian? 

25 MR. NURIK: Objection. 

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Page 43 

THE COURT: Sustained to this line of questioning. 

Q. But you don't know, right? 

A. No. 

Q. No, you don't kr.ow. And you don't know that the prime 

hours for a gambling office are in the early evening? 

A. do not know. 

Q. Before basketba~l games began or baseball --

:HE COURT: She said she doesn't know. 

Q. Does the house in Lynnfield have a pool? 

A. Yes, it Goes. 

Q. Okay. And do you recall being present at that pool on 

12 many occasions with your mother and a woman named Linda 

13 Richardson? 

A. No, I don't. 

l5 Q. You don't know Linda Richardson either, I guess, huh? 

16 A. I know of Linda Richardson. 

Q. Okay. Is it your tes~imony that you never were at yo~r 

18 house in Lynnfield when she was present? 

2.9 A. : don't remember. I'm sorry, I can't recall that. 

20 Q. You don't remember her being present? 

21 A. She wasn't a -- she wasn't a close friend. I met her on 

22 two or three occasions. 

23 Q. Do you remember sitting around the pool while the men were 

24 up in the garage? 

25 A. No, I do not. 

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Q. Yo" don't remember any of that either? 

A. No. It could have been my sister. Ie wasn't me. 

Q. Excuse me? 

A. It could have been "'y sister she remerrcbered, but I don't 

recall. I was raising my family. 

Q. It's your parents' house, correct? 

A. Pardon me? 

Q. It was your parents'? 

A. No. 

10 Q. In Lynnfield? 

A. No. 

12 Q. Were your parents there on numerous occasions? 

13 A. Visiting. 

14 Q. You said you didn't frequent the h6use in Salem Street? 

15 A. No. 

16 Q. During the '90s? 

17 A. No. 

18 Q. You did not? 

19 A. No. 

20 Q. All right. 

21 A. My mother lived in Beverly. 

22 Q. I want to show you some documents from Government 

23 Exhibit 239. 

24 MR. WYSHAK: Can we put the first one up en the 

25 screen. 

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Page 45 

Q. All right, now, that's a check on this joint account; is 

that correct? 

A. Correct. 

Q. This 0933 accour.t? 

A. Correct. 

Q. See the number at the bottom? Is that your handwriting cn 

that check? 

A. Correct. 

Q. And that's a c~eck payable to you for $1,000, correct? 

A. Yes. 

Q. And what was t~at for? 

A. A gift from my brother. 

Q. And who wrote "giftTf in there? 

A. I did. 

Q. So you're managing this accou~t with all this money in it, 

16 and you're drafting checks to yourself? 

17 A. Yes. 

18 Q. How often? 

19 A. Once a month. 

20 Q. Once a mont:h? 

21 A. Yes. 

Q. Twice a month? 

23 A. Once a rr.on-:h. 

24 Q. :;::5 that your testimony, it's just once a l!~onth? 

25 A. Unless there were something I was being repaid for, some 

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Page 46 

expenditures for the children for reimbursement, but a check to 

me 

Q. Well, you had an account with the nanny, right? 

A. ;:es. 

Q. And you had an account with your mother, correct? 

A. Yes. 

Q. And you funded both of those acco:mts with money from this 

0933 account, correct? 

A. Correct. 

Q. And you used that money corr,ing out of that aCCOU:1t to pay 

:1 all the children's expenses, M~. Eremiar.'s chi:dren's exper.ses, 

right? 

13 A. Yes. 

2.4 Q. His mother's expenses, co~rect? 

15 A. Some expenses. 

16 Q. His household expenses at Lynnfield? 

17 A. Correct. 

18 Q. All the normal kinds of things that people pay for when 

19 they are support~ng a family, correct? 

20 A. Correct. 

21 Q. You used that account to pay taxes for M~. Eremian, 

22 correct? 

23 A. Correct. 

24 Q. Mr. Robert Eremian, correct? 

25 A. Correct. 

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MR. WYSHAK: Can we put the next check up. 

Page 47 

Q. All right, now, this is a check drawn to ~ary Eremian; is 

that correct? 

A. Correc-:'. 

Q. And signed by you, correct? 

A. Correct. 

Q. And where does this check get deposited? 

A. That was signed over to me by ny mom, so that wo~ld be put 

into my probably, uhm -- it's now called Beverly Cooperative 

10 Bank, but I don't know what it was called then -- ny account, 

one of my accounts. 

12 Q. Okay. So you J re c"J.tting a check to your IT.other, correc::.? 

13 A. Yes. 

14 Q. And then she endorses it back to you? 

A. Correc::. 

Q. And this is a way for you to draw ou~ more than a thousand 

a month? 

18 A. No. 

19 Q. No? 

20 A. It was a way for her to compensate me for all that I did 

21 for her. 

22 Q. Your mother has to pay you to help her out? 

23 A. ~o, she doesn't have to pay me. 

24 Q. She's not paying you; your brother is paying you, isn't 

25 he? 

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A. My mother er.dorsed this check over to me. 

Page 48 

Q. The money is coming from yo~r brother from Ant~gua, 

correct? 

A. To my mother and my mother to me. 

Q. In fact you have written hundreds of chese checks to 

yourself and to yo~r mother over the years, haven't you? 

A. No. 

Q. No? 

A. Hundreds of checks? 

Q. Well, let's talk about it. 

MR. NURIK: Your Honor, I object to the relevancy of 

12 this thing to our case. 

13 THE COURT: Overruled. 

14 Q. You managed this account =rom approximately 2003 through 

15 2010? 

A. 2009, yes. 

Q. Okay. That's six to seven years? 

A. Yes. 

Q. Okay. And yo~ admit that at least once a month you drew 

20 out a check to yourself, correct? 

21 A. The first few years -- the first year I was he~pir.g my 

22 brother I don't believe = was drawing a check as a gift. 

23 Q. Okay. 'Iell, you would admit that if it's five or six 

24 years once a nonth, it's got to be over a hundred checks? 

23 A. Well, you said "hundreds." 

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Q. Well, there's also the same amount of checks to your 

mother, correct? 

A. Correct. 

Q. So that would number in the hu~dreds? 

A. Twelve checks a year. 

Q. Yes, okay. So this was a common occurrence, for you to 

draw money out of t~is account for yourself? 

A. As a gift, yes. 

Q. As a gift. 

)1R. WYSHAK: Can we put the summary chart up. 

)1R. NURIK: YO"..1r Honor --

)1R. WYSHAK: Can we blow that up a little bit. 

THE COURT: Exc~se me. Have you not seen this? 

MR. NUR:K: Oh, I've seen it, bu~ it's not i~ evidence 

15 and she didn't prepare it. 

16 THE COURT: \ve 11 , what is it? It's a --

17 MR. WYSHAK: A summary of the cieposits i~to her 

18 personal account. mean, I can take the time 

19 :HE COURT: Excuse me. Did you offer it? Are you 

20 going to offer it? 

21 MR. WYSHAK: Yes. 

22 ~HE COURT: What number is this? 

23 )1R. WYSHAK: Th:s is Exhibit 239. 

24 :HE COURT: Is there an objection? 

25 ~R. NUR~K: WeI:, there's no authentication by any 

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witness at this point. 

Page 50 

:HE COURT: So at this point I'm not admitting it. So 

see if she can authenticate it. If not, it gets taken down. 

MR. WYSHAK: Okay. Well, wefve -:aken the witness out 

of turn, your Honor. I could have put the wi~ness on to 

authenticate this document. 

THE COURT: I understand. That's why I'm letting you 

do this, but if she can't identify it, then you have to do it 

ehe other way. 

MR. WYSHAK: Okay. 

Q. Well, take a look at this, Mrs. Tierney. Would it 

12 surprise you if ttese are the amount of checks that you wrote 

to yo~rself out of this 0933 account for ~he years represented 

14 on the left-hand side? 

15 A. I've never see~ this piece of paper. 

16 Q. Okay, try to liste~ to my question. Let's go year by 

17 year. 2004, would you agree that you drew $5,000 out to 

18 yourself? Does that sound about right? 

19 A. I don't recall. 

20 Q. Okay. And in 2~05, $18,000? 

21 A. dar.' t recall. 

22 THE COURT: Wei:, before we do this all, do any of 

23 those numbers ring a bell? 

24 THE WITNESS: None ring a bell. 

25 Q. Okay, you don 1 t know ~he exact amounts, correct? 

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Page 51 

A. Correct.. 

Q. But you don't dispute that you were taking sufficient 

money out of this account for yourself, significant s~ms? 

A. Never the sums that I see in front of ~e. 

Q. Never $27,000, $37,000, $40,000? 

A. No. 

Q. You dispute that, correct? 

A. r don't recall taking checks in those amounts. 

Q. What amounts do you recall? 

:HE COURT: Why don't you take it off the screen then. 

Q. Well, how about the checks to your mother? 

A. The checks to my mother are a thousand dollars a month. 

Q. Okay. And you got that money, right? 

A. My mother endorsed ~t over to me. 

MR. WYSHAK: We can take it off. 

Q. So it's fair to say that you profited from managing this 

account to a great degree, did you not? 

A. I received gifts from my brother for helping him. 

Q. :t1s a lot of money, correct? 

A. Yes. r did a lot of work. 

Q. Well, okay. Did you do work? Were you compensated as an 

22 employee? 

23 A. :\0. 

24 Q. People normally help out their family without 

25 compensation, wouldn 1 t you say? 

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Page 52 

A. Not to the degree that I was helping his family. I'rr. 

sorry. 

Q. So were you in fact earning a living by doing this work? 

A. No. I was being apprecia~ed. I wasn't just doing 

bookkeepir;g. 

Q. What else were you doing? 

A. was taking care of his children that were left behind, 

paying his household bills, his personal bills, and taking care 

of our mother who had cancer. = had mar.y balls in the air 

:0 besides writing checks for his personal business. 

Q. :t sounds like the kinds of stuff we all do for our 

12 children and our parents. 

13 A. 0Jot really. T~ese W6Y6 not my children. I had my own 

14 family as well. 

15 Q. Okay. Well, either i::'s a job or it 1 s sorr,ething you're 

16 doing because you're a member of the family, correct? 

A. I was a trusted member of the family to do a good job with 

18 his children who had no mother. 

Q. You didn't report a~y of ~his money as income, did you? 

20 A. No, I did not. 

21 MR. KUR:K: Your Honor, I have to object at this 

22 point~ It's getting far afield from what we're on trial for. 

23 THE COURT: Overruled, overruled. 

24 Q. And in fact were you aware, since you were assisting your 

25 brother 1 s tax preparer, that your brother never filed gift tax 

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returns for any of these funds? 

A. I was not aware. didn't see the tax returns. 

Page 53 ' 

Q. Did you have a conversation with Mr. Flowers, the tax 

preparer, about these gifts? 

A. Yes. 

Q. Okay. And he was aware of the gifts? 

A. Yes. 

Q. And did he file gift tax returns on behalf of your brother 

Robert? 

A. I don't know. I didn 1 t see the tax return. 

Q. Isn't it true that the reason that you started writing 

12 checks to your mother was ::0 cot:'.e under the threshold of the 

gift tax return? 

14 A. No. 

J5 Q. Do you knoTtl what t~e threshold was? 

16 A. Yes. 

17 Q. Did you discuss that with ~r. Flowers? 

18 A. I asked him a question, yes. 

Q. Okay. So this was a way for you to get more noney and 

20 avoid the filing of a gift tax return to your ~ot~er, correct? 

21 MR. NURIK: Your Honor, I would object a~d ask for a 

22 sidebar or. that. 

23 THE COURT: Sustained on that one. 

24 MR. KURIK: I'd ask for a sidebar. 

25 THE COURT: Yes. A good time to stand and stre~ch. 

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S=DEBAR CONFERENCE: 

Page 54 

MR. ~URIK! I would ask for a limiting instructior. at 

this point. Anything that she may have pled to and Mr. Wyshak 

is bringir:g up concerning any alleged or proposed or suggested 

tax improprieties the jury should not conside~ as to my client. 

It is not part of the charged --

:HE COURT: That's fine as far as tax improprieties, 

but in terms of her being paid to be a member of this 

conspiracy in Massachusetts, it's right on the mark. 

MR. NURIK: I'm not talking about that. I'm talking 

l1 about all these questions that are dealing with tax issues 

12 eight now. 

13 THE COURT: That's fair, that's fair. B~t can 

:.4 just -- at so:ne ~evel -- I mean, obviously I've allowed leading 

:5 at this point. : do think that she's been a hostile witness, 

:6 but let me also say this: I don't know why you're trying to 

17 pull in her husband so much at this point. I mean, to the 

extent he's present, that's fine, but, mean, it's just, you 

know, where it's releva~t it's relevant, where it's not it's 

20 not. 

21 ~R. WYSHAK: It goes to her credibility, number one. 

22 :HE COURT: Maybe, but I'm just simply saying, if it's 

23 relevant when he's present, I allowed it in, but it crossed the 

24 line at some point, so 

25 MR. WYSHAK: I would also note that defense counsel 

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Page 55 

has asked alIT.ost. every government witness about t~eir taxes and 

their tax obligatio~s a~d ~hei~ avoidance of tax obligatior.s. 

THE COURT: I'm not saying you can't ask the question, 

but it's pretty clear it's not how long do you have with 

her? 

MR. WYSHAK: Maybe another twer.ty minutes. 

THE COURT: nOW lor.g "Till you bo,:h be? 

MR. NUR:K: Well, if he goes twenty minutes, I'm going 

to at least take us up to the break at 11:00, kaybe longer. 

:HE COURT: Thatts fine, that's fine, that's fine. 

(End of sidebar conference.) 

:HE COURT: Let me just make it clear that there are 

13 no charges of tax improprieties against M~. Daniel Eremian, so 

24 this discussion only has to do with Mrs. Tierney; and to the 

25 exte~t that there's an a:legation of tax improprieties against 

16 Mr. Lyons, this line of questioning has nothing to do with it. 

17 So I think ~hat captures what we talked abcut. 

18 MR. HORSTMANN: Thank you, your Honor. 

19 BY MR. WYSHAK: 

20 Q. Was your husband aware that you were managing this bank 

accour.t for your brother Robert Erenia~? 

22 A. Yes, he was. 

23 Q. Were you aware that in 2006 a legislation was passed by 

24 Congress making the kinds of t~ansactions tha~ you were 

25 involved in illegal? 

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Case 1:10-cr-10159-PBS Document 179 Filed 12106/11 Page 56 of 264 

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~o, was net aware. 

Page 56 

Q. Were you aware that your husband voted on that legislation 

twice? 

~R. KUR:K: Objection. 

THE COURT: Sustained, sustained. 

Q. Well, did you ever have a conversation with your husband 

about the legality of what your brother Robert Erenian was 

dcing? 

MR. NURIK: Objeccion. 

THE COURT: Sustained. Well, actually, actually, 

overruled :rom you. 

MR. STERN: object, your Honor, on behalf of the 

witness. 

:HE COURT: Sustained. 

MR. WYSHAK: I can ask the witness whether the 

16 conversation existed. 

THE COURT: Excuse me. Sustair.ed. It's marital 

18 privilege. You cannot --

MR. WYSHAK: I'm not going into ~he SUbstance. I'm 

20 just asking whether such a conversatio~ occurred. 

21 :HE COURT: Sustained on the oasis of marital 

22 privilege. 

23 MR. WYSHAK: Your Honor, may we have a sidebar on this 

24 beca'Jse 

25 THE COURT: No. I think I know what the argument is. 

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Page 57 

If there f 5 something differer:.t from what I know -- well, let n-'.e 

ask you this. Well, unless you have any knowledge that a 

conversation happened in the presence of a third party where 

the privilege wouldn't apply. 

MR. WYSHAK: Well, the law in Massachusetts allows 

:HE COURT: Excuse me. Let me see you. 

SIDEBAR CONFERENCE: 

~R. WYSHAK: We actually did some homework on this, 

your Honor. 

:HE COURT: So did I. 

~R. WYSHAK: O~ay, and this Ga:lagher against 

12 Goldstein easel which is a 1988 case, clearly says that the 

:3 statute does not bar evidence as to the fact that a 

14 conversation took place. I can inquire as to whether or not 

15 there was a conversation. I may not be able to go into ~he 

16 substance, but I do think it's relevant to her credibi~ity as a 

17 witness whe~her or not she ever sought advice or counsel from 

18 her husbar.d, who's a lawye~. 

19 THE COURT: That's exactly -- you1re trying to ge~ 

20 into the substance of the conversation. Excuse me. The 

21 objection is sustained. Now, hereTs the issue here: It's 

22 relevant, so you canTt make the objection. 

23 ~R. NURIK: understand, I understand. 

24 ~HE COURT: And to the extent that there's an 

25 objection, ~hat's why 112 looking to Mr. Stern here, I mean, so 

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I don't know who's doing what but 

MR. KURIK: Excep~ that, a~d I understand --

THE COURT: It's a hundred percent releva~t. 

Page 58 ! 

MR. KURIK: the p~oble~ is that typically a Mr. Stern 

is not here, so I'm kind of preconditioned to object to the 

spousal privilege. 

~R. STERN: The other thing, your Honor, as long as 

we're tere, some of his question l and think the objection was 

properly sustained, but, I mean, if Mr. Wyshak is going to keep 

10 bangir.g away trying to insert any kind 0:, you know, evidence 

11 about her husband a:1d --

12 "HE COURT: Well, at some level I'm assuming he will 

13 act as an officer of the court and try and no~ do it on 

14 irrelevant grounds. A~d to the extent I think it is, I've 

15 sustained it. To the extent I think it's relevant, I haven't. 

16 This ~s relevant; it's jus~ privileged. 

MR. STERN: The Ocher thing I want to say, your Honor, 

IS your Honor made a curative instruction to the jury in terms of 

the tax. You might want to say there is no tax consequences to 

20 a recipient, a donee of a gift that exceeds the limits. 

21 THE COURT: If you believe itTs a gift. I mean, ITm 

22 not getting into that one. 

23 (End of sidebar confe::ence.) 

24 

25 BY M?. \,YSHAK: 

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13-59 

Page 59 

Q. I'd like to talk a little bit more about this 0933 

account. Were some of the fur.ds that were going into this 

account, did they come from people who purchas~d Red Sox 

tickets? 

A. On very sli~ occaSion, yes. 

Q. Okay. And YO'Jr brother held season tickets to the Red 

Sox? 

A. Correct~ 

Q. Four seats? 

MR. NURIK: Clarification. 

Q. Robert Zremian? 

A. Yes. 

Q. And you, like everything else, managed those Red Sox 

14 tickets for him? 

15 A. Correct. 

16 Q. And you would sell the Red Sox tickets; is that fair to 

say? 

18 A. I didn't sell them. I sold games that he didn't allocate 

19 to people. 

20 Q. Okay. So if somebody wanted to buy some tickets, they'd 

21 contact you and send you a check, and you'd send them the 

22 tickets; is that fair to say? 

23 A. Most 0: the instructions ca~e from my brother as to where 

24 the tickets would go to, or he would have somebody call me and 

25 say, "Bob gave me 

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Case 1:10-cr-10159-PBS Document 179 Filed 12106111 Page 60 of 264 

13-60 

Q. Okay. Do you know a man named William Means? 

A. I met hi~ at my niece's funeral. 

Page 60 

Q. Okay. And had you sent hiIT'. Red Sox ~ickets in the past? 

A. Yes. 

Q. And had he sent you money in payment of chose Red Sox 

::ickets? 

A. I be:ieve he talked directly to my b:-other about payment. 

I don't recall receiving a check from Mr. Means. 

Q. How about a Richard Ducharrr.e? 

A. Yes. 

Q. Do you know him? 

A. I do. 

Q. Was he a person who also you sent Red Sox tickets to? 

A. Yes, a few. 

Q. Did he send you money? 

A. On occasion. 

Q. Andrew Pomper, he is a pe~son you sent Red Sox tickets to? 

A. : did. 

Q. Did he send you money? 

A. At one point he did. At other times he sent to my brother 

21 or they had some arrange::tent. : only took -- I believe I took 

22 one checi:: from him. 

23 Q. All right, all these men had arrangements with your 

24 brother because they all worked for him; i8n':: that true? 

23 A. I have no idea who worked for my brocher. 

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Page 61 

Q. You have no idea that these men worked for your brother? 

A. No. 

Q. And sometimes they didn't have to pay you because this 

money went on their SOS accounti isn't that true? 

A. I have no knowledge of that. 

Q. They didn't tell yo~ that? You didn't have that 

conversation with them? 

A. Never. 

Q. Lindsey Perry, was~'t he another one of these people you 

10 sent Red Sox tickets to? 

A. Maybe one or two. No, he was not --

Q. Let's talk a little bit more about Lindsey Perry. Who was 

13 he? 

14 A. Li'ndsey Perry was a schoolr:.ate of r:1y family's in 

15 Masconomet. Lindsey Perry ran a property in Nantucket. I 

16 don't know what his job description was. 

Q. Okay. He was a prope~ty manager, correct? 

18 A. I g~ess so, yeah. 

Q. He managed a timeshare that you used? 

20 A. I didn't use it. 

21 Q. All right. What did yot: do with it? Did you manage it? 

A. I paid the bills that would come from it's a timesha~e 

23 complex, so it wot:ld be annual fees that everybody in the 

24 complex paid. He wot:ld send the bill to my brother's P.O. box, 

25 and that's what _ would pay. 

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13-62 

Page 62 

Q. Okay. And sometimes YOu didn't have to pay it; isn't that 

::rue? 

A. - don'~ recall when I didn't ~ave to pay it. 

Q. You donTt recal~ that sometimes you didn't have to pay 

beca'.Jse he owed 50S noney? 

A. ~ don't recall. 

Q. ~ou don't recall 

A. :t was only a ODce or a twice year bill. I don't --

Nantucket wasn't one of my focuses. 

Q. So all these people, Mr. Means, Mr. Ducharme, Mr. Porr.per, 

21 Mr. Perry, would sometimes set off wtat they owed eit~er for 

their Red Sox tickets or what yeu owed ~r. Perry for you~ condo 

fees against debts that they had to SOS, and you don't know 

anything about that? 

15 A. I do not. : don't know anything about that. 

16 Q. You donlt know anything about that. You don't know why 

17 you didn't have to pay the condo fees one year to Mr. Peery? 

A. ~o. 

19 Q. Did you know Mr. Perry was gambling with your brother 

20 Robert Eremian? 

21 A. l\o. 

22 Q. You didn't know that either, right? This is a school chum 

23 of yours who went to Masconomet with you? 

24 A. I knew of him. He wasn't a chum. 

25 Q. You told us just a minute ago he's a friend of your 

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family. 

A. He went to school with some of my brothers. 

Page 63 

Q. And you didn't know that he was betting with your brother 

Robert Eremiar.? 

A. No. He lives on ~antucket. 

Q. didr.'t ask you where he lived. I asked you if you knew 

he was betting with your brother Robert Eremian? 

A. did not know. 

Q. And you didn't know Andrew Pomper was betting with your 

lO brother Robert Erem:"an? 

A. I gave Ar.drew Pomper Red Sox tickets. 

12 Q. Try to answer the question. 

13 A. No. 

14 Q. Did you know Andrew Pomper 

15 A. No. 

16 Q. was betting with Robert Erenian? 

17 A. No. 

] 8 Q. Did you know he worked as an agent for Robert Eremian? 

A. No. 

20 Q. And Mr. DucharMe, did you know that he worked as an agent 

21 for your brother Robert Eremian? 

22 A. No. 

23 Q. Or William Means, you didn't know he worked as an agent 

24 for Robert Eremian? 

25 A. No. 

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13-64 

Page 64 

Q. Now, the timeshare in Nantucket, is it your testimony you 

never used it? 

A. Correct. 

Q. Who used it? 

A. His family, my brother's family. 

Q. His kids? 

A. His kids, his wife, his relatives. 

Q. You never used i~? 

A. I never used his timeshare. 

Q. Well, he had eight Vleeks, rig:,t? Did you Clave some other 

11 timeshare we I re not aware of? 

A. No. I rented a week from Mr. Perry. 

Q. Was that one of your brother's Vleeks? 

14 A. No. It was a smaller condo place. 

15 Q. In fact, didn't you sell t:,at timeshare? Didn't you? 

16 A. I didn't sell it. 

Q. Okay. You didn't participate in the sale in 2009 of the 

18 Nantucket timeshare? 

19 A. No. 

20 Q. No? 

21 A. I kneVi he sold it. 

22 Q. Who did you think oVined the time-share? 

A. I'm sorry? 

24 Q. Who oVined the time-share? 

25 A. I believe my brother owned the time-share. 

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Case 1:10-cr-10159-PBS Document 179 Filed 12/06/11 Page 65 of 264 

13-65 

MR. WYSHAK: Can we put the monitor on. 

Q. Can you see that check? 

A. Yes. 

Q. That's a check in September of 2009, correct? 

A. Correct. 

Q. To you? 

A. Correct. 

Q. For $73,000? 

A. Correct. 

Q. Okay. And who is Islandwide Realty? 

A. That is Ken Lindsay. 

Q. Okay, you know Ken Lindsay, right? 

A. I went to school with him. 

Q. Did you know he gambled with your brother Robert? 

A. No. 

Page 65 

Q. Okay. So how long were you managing this time-share on 

17 Nantucket? 

18 A. I didn't manage it initially. Uhm, probably for maybe 

19 four years, four or five years~ 

20 Q. 

A. 

22 Q. 

23 A. 

24 Q. 

25 A. 

Just four or five years? 

Yes. 

Between what period of time? 

Probably 2004 to 2009. 

Okay, about five years? 

Yeah, yes. 

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Case 1:10-cr-10159-PBS Document 179 Filed 12106111 Page 66 of 264 

13-66 

Q. And there were eight weeks, right? 

A. Yes. 

Q. And if people wanted to use those weeks, you'd call 

Mr. Perry and make arra~gements? 

A. No. 

Q. :::o? 

A. I wasn't involved in that. 

Page 66 

Q. You didn't send him money for the ferry to get from the 

mainland, Mass. Cape Cod to Nantucket? 

A. Send money? 

Q. Money, didn't you send him checks to pay for ferry tickets 

for people who were going over to ~se the timeshare? 

A. No. 

Q. You don't remember any of this, Mrs. Tierney? 

A. = don't know w~o stayed a~ my brother's ~imeshare. It was 

separate from where: stayed. It was a big developrne~t. 

Q. Whe~ you say it's your brother's timeshare, is it your 

18 testimony you thought he owned it? 

A. I thought he owned it. 

20 Q. Okay. Were you surprised in 2009 to find out that he did 

21 not own it? 

22 A. ~ wasn't surprised. I think he was trying to sell it. 

23 Q. Well, did he own it? 

24 A. Yes. 

25 Q. Was title in his name? 

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Case 1:10-cr-10159-PBS Document 179 Filed 12/06/11 Page 67 of 264 

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Page 67 

A. I don't recall. His or his wife's. I never saw a title. 

Q. You don't reca:l that there was a problem that title had 

never been put in his name? 

A. I had nothing to do with the t!tle. 

Q. Okay. Well, the check to pay for this comes from 

Islandwide Realty; is that correct? 

A. Correct. 

Q. That's Mr. Lindsay, correct? 

A. It's 

Q. He's sending you a check for this, correct? 

A. Yes. 

Q. Did you go to a closing for the sale of this timeshare? 

A. No. 

Q. Do you know if your brother Robert Eremian went to --

A. No. 

Q. No. You're getting a lot of money, but YOo don't know a 

:ot about any of this; is that fair to say? 

A. This wasn't my money. 

19 Q. It's corr:ing to you, correct? 

20 A. It's being deposited into my brother's checkbook. 

Q. okay, it's coming to you? 

22 A. Yes. 

23 Q. The check isn't written out to Bob Eremian? 

24 A. No. 

Q. It's written out to Patrice Tierney? 

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Case 1:10-cr-10159-PBS Document 179 Filed 12106/11 Page 68 of 264 

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A. Correc~. 

Page 68 \ 

Q. Who told Mr. Lindsay to make the check out to Patrice 

Tierney? 

A. Probably my brother. 

Q. And you endorsed the check and deposited it, right? 

That's your er.dorsement? 

A. Yes, into h~s Bank of America accoun~. 

Q. Did you know that your brother obtained this timeshare as 

payment of a gambling debt from Mr. Lindsay? 

A. No, T did not. 

Q. You dcnTt know anything about that? 

A. No. 

Q. And you don't kr.ow that the timeshare was never in your 

;.4 brother's name during that er;tire period ::'hat you nanaged it? 

15 A. ~ never saw doc~ments. I'm sorry. The bills came ~o his 

:;'6 name. 

17 Q. And that when it was sold, Mr. Lindsay was the one who had 

18 to sell it because title was still in his name? You don't know 

19 anything about ~hat? 

20 A. This is a different -- this is Ke~ Lindsay, not Lindsey 

21 Perry. Two different people. 

22 Q. ~lm aware of that. 

23 A. Okay. 

24 Q. That's what I asked you, that Mr. Lindsay had to sell it 

25 because title was still in his name? 

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Page 69 

A. I didn't know that. 

Q. Were you surprised when you saw that he was the purchaser, 

that he's senaing yo~ the check here? 

A. Who was the purchaser? 

Q. Well, that he's se~ding you the c~eck? He sold it. 

A. Yes. 

Q. He sold it to the purchaser. 

A. So he sent me the proceeds to put ~n Bob's account. 

Q. Correc~, correct. We~e you surprised by that? 

A. No. My brother said he was trying to get rid of it. 

Q. Okay. Have you participated in the sale of any real 

estate in your life? 

A. In my life? 

Q. Yes. 

A. Yes. 

Q. Okay. And generally when somebody buys a piece of real 

17 estate, you go 'Co a clos:'ng? 

18 A. Correc~. 

Q. The buyer pays with his own checks, correct? 

20 A. Ul:-huh, yes. 

21 Q. You were~'t surprised that Mr. Lindsay was sending yo~ 

22 this check? 

23 A. ~o. He wanted to put it in my brother's account. 

24 Q. All right, now, you dealt with Mr. Flowers concerning your 

25 brother's tax returns; is that correct? 

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A. Correc:.. 

Page 70 

Q. Did you assist him in filing a tax return for Sports Off 

Shore? 

A. No. 

Q. Were you aware that no tax returns were filed for Sports 

Off Shore? 

A. No. 

Q. You weren't aware of that? 

A. No_ I only handled my brother's personal. 

Q. Well, you handled more than his personal. You handled his 

11 business, correct? Many of the bills that you were paying 

12 7HE COURT: You need ::0 wait for ar: answer. 

13 MR. WYSHAK: Well, wi~hdrawn. 

14 Q. You handled some of his business expenses, didn't you? 

15 A. I dor.':. believe I did. They were personal credit cards, 

not b~siness credit cards. 

17 Q. Okay, did you use a program called QuickBooks? 

18 A. Yes, I did. 

19 Q. As a matter of fact, you got trai~ed or. how to use 

20 Quic',{Boo}(s? 

21 A. I did. 

22 Q. And some of the expenses that you were entering into the 

23 QuickBooks were expenses that you coded as business expenses, 

24 were:l' t they? 

25 A. Correc::. 

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Q. Purchase of computers, computer hardware? 

A. Uh-huh, correct. 

Q. Software, travel, correct? 

A. Correct. 

Q. Okay, so those are busi~ess expenses, correct? 

A. Correct. 

Page 71 

Q. In connection with the operation of Sports Off S~ore, were 

they not? 

A. With his consulting business, correct. 

Q. His cons~lting. You still believe he's a consultant, 

11 right? 

12 A. Yes, sir. 

13 Q. Okay. You knew that if he were the principal of Sports 

14 Off Shore, he'd have to file a corporate tax return or a 

:5 business tax re~urn? 

16 MR. NURIK: Objection. It assumes facts not in 

17 evidence, also is a mischaracterization of the law. 

18 THE COURT: Sustained. 

19 Q. So, Ms. Tierney, even though you've pled guilty to being 

20 willfully bli~d to aiding and abetting him in the filing of 

false tax returns, you still sit there and tell us you do r.o~ 

22 think he's "he principal of 50S? 

23 A. Yes. 

24 Q. Correc-:.? 

25 A. Yes. 

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Page 72 

Q. Okay. Did you understand that 50S was doing business in 

the United States? 

A. At what pe~iod? 

Q. At any period of ti~e. 

A. In the earlier years. 

Q. What a~e the earlier years? 

A. The la~e '90s. 

Q. And how did you have that understanding? 

A. He was working out of his garage. 

Q. Okay. I'm talking about Sports Off Shore l the business in 

~1 Antigua. 

A. Oh, 'm so~ry. It wasn't called that. 

Q. Did you understand that Sports Off Shore, that your 

brother when he was in Antigua was doing business in the U~i~ed 

13 States? 

16 A. No. 

Q. You didn't understand that? 

A. No. 

Q. Do you reca~l that he was interviewed by the 

20 New York Times in 1998? 

21 A. No, I don't. 

22 Q. Did you see that inteyview? 

23 A. : never did. 

24 Q. You never saw that ei~her? 

25 A. No. 

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Page 73 

Q. Your brother gets interviewed by the biggest newspaper in 

~he country, and you don't know anything about that? 

A. No. I dontt see ha~f of my h~sband's in~erviews. 

Q. When did you first become aware that your brother was 

being investigated, your brother Robert was being investigated 

by the Federal Grand Jury? 

A. It was -- I believe it was I donl~ remember the date. 

I was contacted by an attorney. dcoTt remember the exact 

date. 

Q. Okay, scme~ime in 2009? 

A. Yes, probably. 

Q. And isn't ~hat one of those red flags that you should have 

:3 been aware of when you knew that the gove~nment was 

14 investigating your brother's illegal activity? 

15 A. Yes. 

16 Q. But you continued to "Cake 1':1.ooey from Antigua, correct, 

17 manage his account, correci:? 

18 A. Correct. 

19 Q. And continued to use the money coming in from this account 

20 to pay yourself money I correct? 

21 A. Correct. 

22 Q. And to cover al: of Mr. Eremianrs personal and business 

23 expenses I correct? 

24 A. Correct. 

25 Q. Including his familyfs expenses? 

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Page 74 

A. Correct. 

Q. And at some point your son Jobn Chew in ~he fall of 2009 

is subpoer.aed to the Federal Grand Jury; isn T t that true? 

A. Correct. 

Q. Okay. And you cut a check to his lawyer out 0= this 0933 

account, correc~? 

A. Correct.. 

Q. Why did you do that? 

A. He bad to pay bis lawyer, and his uncle offered to pay for 

it. 

Q. Did you understand tbat he was being subpoenaed to the 

12 Federal Grand Jury in connection with an investigation into 

13 Robert Eremian? 

14 A. :::e8. 

15 Q. Okay. And is that wby you had Robert Eremian pay for your 

son's lawye:-? 

A. My bro~her Robert offered to pay for the lawyer. My son 

18 didn I t have the r.'.oney to pay for a lawyer. 

19 Q. And at that time you must have been extrer..ely aware that 

20 t.here was something wrong in Denmark, so to speak, correct? 

21 A. Correc-::. 

22 Q. And you still continued to manage this account; you still 

23 continued to take money ou~ of it, did:1't you? 

24 A. = did. 

25 Q. And you still continued to pay Mr. Eyemian's expenses, 

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correct? 

A. Correct. 

Q. Until February 0: 2010? 

A. Correct. 

Page 75 

Q. Correct? And can you explain to the jury why, despite 

having knowledge that your brother was under criminal 

investigation for his activities in Antigua, you contir.ued to 

participate in ~his activity? 

A. : was advised by my brother's attorney, who was the one 

10 who in£or~ed me of this case, to continue to pay. 

11 Q. Your brother's --

MR. HORSTMANN: Objectoon. 

13 =HE COURT: Overruled. 

14 Q. Your brother's attorney? 

15 A. Yes. I asked him if I should stop, and he said, "Continue 

16 what you're doing." 

Q. How about your husband? 

18 MR. NURIK: Objection. 

MR. STERN: Objec~ionf your Her-or. 

20 THE COURT: Sustained. 

Q. He's a lawyer, right? 

22 A. He was. 

23 Q. Well, is he no longer a member of the Bar --

24 A. No, he's a member of the Bar. 

25 Q. -- of Massachusetts? 

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Case 1:10-cr-10159-PBS Document 179 Filed 12106111 Page 76 of 264 

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A. He's not a practicir.g lawyer. 

Page 76 \ 

Q. He's certainly somebody who's available for you to ccnsult 

with concerning legal matters, correct? 

A. Correct. 

Q. Yet you choose to talk to your brother's lawyer, correct? 

A. Correct. 

Q. Somebody who's got your brother's interests in mind, 

correct? 

~R. NURIK: Objection. 

THE COURT: Overruled. 

~R. NURIK: Ca~ we have clarification of which 

12 brother. 

THE COURT: Oh, I keep forgetting that, but I think 

14 the context is always Robert Eremian unless you say otherwise 

15 at this point. 

16 THE WITNESS: Corcect, yes. 

THE COURT: All right. 

18 Q. And would ~hat lawyer be Jim Merberg? 

19 A. Yes. 

20 Q. So Jim Merberg told you to continue managing ttis account? 

21 MR. STERN: Objec~ion. Your ?fonor, may we approach 

22 briefly at sidebar? 

23 THE COURT: Let me just ask this: Was he providing 

24 legal services to you? 

25 THE WITNESS: No. He was just making the suggestion 

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Case 1:lO-cr-10159-PBS Document 179 Filed 12/06/11 Page 77 of 264 

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Page 77 

that I continue what I'm doing as if nothing was wrong, and 

just did it, un~il I was told by Mr. Wyshak to discontinue. 

Q. And you needed me to tell you that, right? 

A. Yes. 

Q. You couldn't figure it out on your own? 

MR. NURIK: Objection. 

IHE COURT: Sustained. 

Q. Do you feel that your bro~her Robert Eremian deceived you? 

A. :;10. 

Q. :;10. 

A. I don',: .. 

Q. So I guess you disagree witt your husband's statements to 

the media that you were deceived by your brother? 

A. don'~ believe eithe~ of my brothers would p~t me in 

15 harm's way. I don't believe he deceived me. 

16 Q. ?ry and answer the question. Do you agree with your 

17 husband's statement on the COUyttouse steps --

18 MR. NUR:K: Objection, assumes facts not in evidence, 

your Honor. 

20 THE COURT: I'll allow the question to be asked. 

21 Q. Do you agree with your husband's statement on the 

22 courthouse steps that you were a victim of your brother's 

23 deception? 

24 A. No. 

25 Q. You don't agree with his statement. So you think your 

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brother has been :air and square with you? 

A. I thought he was. 

Page 78 

Q. If in :act he is the owner of SOS, he would have lied to 

you, correct? 

A. Correct. 

Q. If in :act the conduct in which he was engaged in was 

illegal, he would have lied to you, ccrrect? 

A. Correct. 

Q. Do you kno;] Todd Lyons? 

A. I do. 

Q. Okay. And how do you know Todd Lyons? 

A. He went to sebcol with both of my boys. I know iim from 

:3 Marblehead. 

Q. Did you know that Todd Lyons ;JOrked for your brother 

: 5 Robert Eremi an? 

A. In the early years when my son did, yes. 

17 Q. ~gain, when you're talking about the early years 

18 A. I'ill sorry. In the late '90s. 

19 THE COURT: Well, just differentiate. So are you 

20 talking about the business in the garage? 

21 THE WITNESS: In the garage. 

22 Q. Okay. After your brother Robert went to Antigua, did you 

23 know that Todd Lyons worked for him? 

24 A. No. 

25 Q. And what's been the nature of your relationship with 

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Mr. Lyons since your brother went to Antigua? 

A. I haven't had a relationship with Mr. Lyons. 

Q. Kothing. 

Page 79 

A. His cousin dated my daughter, and they opened a food 

business. saw him there once or twice, but ether than tha~, 

I might have seen him at a Red Sox game once. 

Q. :sn't it true that your daughter Carlin told you that Todd 

worked for your brother Bob? 

~R. NUR:K: Objection. 

:HE COURT: Sustained. 

Q. Have you ever received anything from Mr. Lyons to send to 

:2 Antigua? 

13 A. Never. 

14 Q. You sent items to Antigua; is that ~air to say? 

15 A. I believe I sent items to ~y brother to send to Antig~a, 

16 my brother Dan. 

17 Q. Okay. Why not send them yourself? 

18 A. Because he was filling a large container of sorts. It was 

very exper.sive to send things to Antigua. 

20 Q. Well, from time to time, though, you did ship ite~s to 

Antigua via FedEx; is that correct? 

22 A. Yes. 

23 Q. And what were those i~ems? 

24 A. I ser.t some jewelry i~ems ttat I had made. 

25 Q. Anything else? 

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13-80 

A. Olive oil. 

Q. Doc'.1ments, did you ever send documents there? 

Page 80 

A. I don'~ recall docu~ents. There might have been some bank 

statements ~hat came or a credit card bill that I didn't 

understanci, and : sent it to hire. 

Q. And how wou=..d you describe Yo:.Jr relationship with your 

brother Dan? 

A. My bro~her Dan and I have always been very friendly. 

Q. And what did you u~derstand he did for a livir-g? 

A. At wha:: time? 

Q. The last ten years. 

A. He owned a restaurant in Florida, which burned to the 

:3 ground, and it's in :itigation. 

Q. 7hat was a long time ago, right? 

15 A. I believe it's still in litigation. I don't know how many 

16 years it's been in litigation. 

17 Q. The restaurant burnt down in 2003 or thereabouts? 

18 A. Possi.bly. 

19 Q. Okay, so since then, what do you understand that he does 

20 for a living? 

21 A. He's a professional gambler. He files his taxes as a 

22 professional gambler. 

23 Q. Okay, but you didn't know he nad any connection with 50S; 

24 is that your testimor:.y? 

25 A. ~o, except to ship supplies to my brother. 

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Page 81 

Q. Okay. And you have constant comm~nication witt him, don't 

you? 

A. With Dan? 

Q. With your brother Caniel? 

A. Constant? No. 

Q. Well, if told you there was over a hundred telephone 

calls between your brother and yourself in 2009, would that 

surprise you? 

:HE COURT: Your brother Daniel. 

A. My brother Dan? No, it wouldn't surprise me. t-1y mothe::' 

11 was very ill. 

12 Q. Did you ever directly ask your brother Robert Ere~ian 

13 regarding the legality of his activities in Antigua? 

A. Ko. 

15 Q. ~o? YouTre sure about that, Ms. T~erney? 

A. I fm su::ce. 

17 Q. You didn't tell your lawyer that you asked yoer bro~her 

:HE COURT: You can't ask about what she told her 

lawyer. 

20 MR. WYSHAK: I think it's a waiver because it was 

communicated to 1':'.e. 

22 THE COURT: All right, you can make that proffer. 

Q. Did you tell yoer lawyer that you asked your brother about 

24 the legality of what he was doing, and he told you you didn't 

25 want to kr.ow? 

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13-82 

A. I don't recall that. 

Q. You deny that you said those words to Mr. Stern? 

A. I do~ft recall I said those words. 

Page 82 

Q. Well, yo~ would recall if you had a conversation wi~h your 

brother about, nIs this legal?fl and he told you, "You don't 

want to know." That wou:d be one of those red flags, right? 

A. It would be, but I don t t recall. 

Q. Okay, you don't recall having the conversation with your 

brother, or you don't recall telling Mr. Stern that? 

MR. NURIK: Clarification. 

THE COURT: Daniel Erenian? 

MR. WYSHAK: I'm sorry. 

Q. Do you recall --

A. don't recall 

MR. NURIK: Which brother? 

Q . having that conversation with Robert Eremian? Is that 

..:. 7 what you cion 1 t recal:"? 

18 A. : do not recall. 

19 Q. You don't ~ecall? 

20 A. )io. 

21 Q. And you cion't recall telling your lawyer that? 

22 MR. STERN: Objection, your Honor. 

23 THE COURT: Sustained, asked ar.d answered. 

24 MR. WYSHAK: I have nothing further, your Honor. 

25 

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13-83 

CROSS-EXAMINATION BY MR. NURIK: 

Q. Good morning. 

A. Good morning. 

Page 83 

Q. We met outside for the first time just before court today? 

A. Correc::.. 

Q. We've never spoken before? 

A. Never. 

Q. May _ call you Patrice? 

A. You may. 

Q. Patrice, with respect to ~he bank acco~nt that Mr. Wyshak 

11 asked you numerous questions, I want to focus on my client who 

12 is O~ trial, Dan Eremian. Did you ever pay hin any money out 

of that account? 

14 A. ~o, r.ever. 

15 Q. Did he have anything to do with that account? 

16 A. No, no::hing. 

Q. Did he have any records of that account, to your 

]8 knowledge? 

19 A. ~o. 

20 Q. Did you ever send him anything regarding ttat account? 

21 A. ~ever. 

22 Q. As far as you know, did he even know of ~he existence of 

23 that acco~nt? 

24 A. I believe he knew of the existence because I would have to 

25 pay a kid's bill, or, you know, we'd talk about that. 

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Page 84 

Q. In fact you took care of a lot of the children in the 

family -- specifically, Bob Ere~ianTs children --

A. Correct. 

Q. -- as a result of some diffic~:t family circumstances, 

correct? 

A. Correct. 

Q. And Dan was aware of ~hat, correct? 

A. Correct. 

Q. And he knew that as a result, you were making payments for 

10 a':l sorts of things for Bob T s kids, correct? 

11 A. Cerree::. 

12 Q. In fact this was necessitated as a result of Bob's 

13 estranged wife Lauren developing a substance abuse problem, 

14 correct? 

15 A. Correct. 

16 Q. She went into rehab? 

A. Correct. 

18 Q. And as a result, Bob now didnft have anybody to take care 

of the problems that the family had, correct? 

20 A. Carree":. 

Q. For that matter, t~ere were all sorts of payments that 

22 needed to be :nade of :amily biL:'.s? 

23 A. Correct. 

24 Q. There were all sorts of things that needed to be taken 

25 care of for the childre:1? 

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A. Correct. 

Q. And Bob had four children, correct --

A. Correct. 

Q. -- at the time? He had a daughter Amy? 

A. Correct. 

Q. Who has since passed away from a drug overdose? 

Page 85 

THE COURT: Yo~ know, do we have to disclose this 

personal stuff? 

MR. NURIK: I think it is r.ecessary, your Honor. I f TIl 

10 :lot going to spend much time, but I I d like the opportuni -:y. 

11 THE COURT: I don't know what other personal things 

12 are coming out about the children, so please don't mention 

13 names. At some leve.=.. --

14 Q. Well, needless to say, a number of the children themselves 

l5 had substance abuse problems, correct? 

A. Correc"::. 

Q. Okay. And Bob was going back and forth between Antigua 

18 and the United States? 

A. Correct. 

20 Q. And he needed help with his family? 

A. Correct. 

22 Q. And you were t~e o~e that he could trust t~e nost to help? 

23 A. Correct. 

24 Q. And ~n tha~ regard, he put you in charge of the bank 

25 account tha~ was in Massachusetts? 

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A. Correct. 

Page 86 

Q. And as a result, you kept very detailed ~ecords of that 

bank acco~ntf correct? 

A. Yes. 

Q. :n fac~, you said that you learned QuickBooks? 

A. Yes. 

Q. And you kept detailed QuickBooks records, correct? 

A. Yes. 

Q. And as a resultl you were familiar generally, even as you 

10 sit ~ere now, the types of things that you paid out of that 

11 acco'Jr.t? 

12 A. Yes. 

13 Q. Kow, Mr. Wyshak brought out that close to $5 million 

14 actually went into that account in deposi~s. Do you recall 

15 that? 

16 A. Into my brother's account. 

17 Q. Yes. 

18 A. Yes. 

19 Q. Okay, and brother for purposes of this, we'll talk about 

20 Bob Eremian. 

21 A. My brother Bob. Not the household account. 

22 Q. Rig~t. Now, actually, the time that you managed the 

23 account and that you kept QuickBook records of that account 

24 that is, the main account actually $4,828,000 went into that 

25 account? Does that sound about right? 

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A. About right. 

Q. Okay, just to aid you, I'm goi~g to show you your 

QuickBook records. Take a look at that to refresh your 

recollection. 

(Witness examining documents.) 

Q. Okay? 

A. Uh-huh, yes. 

Page 87 

Q. Now, there was several sources of ~oney that came into 

that account, correct? You got checks, correct? 

A. Right. 

Q. You also got wires? 

A. Correct. 

Q. And these came from Antigua? 

A. Correct. 

Q. And the checks came from Antigua? 

A. Correct. 

Q. 7here were also hundreds of thousands of dollars that came 

18 in as a result of a sett:"ement because one of Bob Eremian 1 s 

2.9 lawyers, prior lawyers, had stolen f:1oney from him, correct? 

20 A. Correct, yes. 

Q. Had stolen abo~t a half a r::tillion dollars, correct? 

22 A. Correc::. 

23 Q. And that money was repatriated into ~he acco~nt, correct? 

24 A. CorreCi:. 

25 Q. Now, what the gover~ment asked you about was the money 

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Page 88 

that went in. Let's talk about some of ~he money that went 

out. Isn't it a =act that in actuality over $3 million was 

paid for taxes to the United States Treasury out of that 

account? 

A. Correct. 

Q. In fact, there were payments made every year by you. You 

signed the checks to che United States Treasury, which 

represented payments you were directed to make to pay taxes on 

the income that Bob Eremian made from his activities in 

10 Ant~gua, correct? 

:1 A. Correct. 

.2.2 Q. And you alone paid $2.4 million in those checks to Lte 

l3 IRS, correct? 

14 THE COORT: That's unclear, thac question. 

15 Q. When I say "you alone, Tf :neaning 

16 THE COORT: Her personal taxes? 

17 MR. NURIK: No. I apologize, your Honor. 

18 Q. You signed ~hecks on behalf of Bob Eremian to pay his 

19 taxes to the Internal Revenue Service? 

20 A. Correct. 

21 Q. And the checks that you sigr.ed that you recall during the 

22 years that you were involved was $2.4 mil!ion; act~ally, 

23 specifically $2,403,552.76, correct? 

24 A. 

25 Q. 

I do~'t remember the amount, but 

Okay, let me show you this and see if this refreshes your 

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13-89 

recollection. 

A. :hey were quarterly payments, so I 

(Witness examining docume~t.) 

A. Correc~. 

Page 89 

Q. And in additio~, you'ye aware that in 2009, other payments 

were made, bringing the total arr~ount to $3.5 million, co:::-rec-:'? 

A. I don't remember the amounts. This is my brotter's tax 

payments? It would be fou:::.- payments? I don't remember the 

exact amount. 

Q. But there were additional amounts? 

A. Yes. 

Q. So there were anounts over the $2.4 million that were 

13 paid? 

14 A. Yes. 

Q. NOw, in additior. to money paid for the Internal Reven~e 

16 Service out of that account on behalf of Bob Eremian, :;: believe 

17 you told Mr. Wyshak that money was paid to charities. 

18 A. Yes. 

19 Q. :n that regard, yo~ said ~hat money was sent to a Bill 

20 C:inton cha:-:-ity? 

21 A. Correct. 

22 Q. You recall money being paid also for Haitian relief fund? 

23 A. Correct. 

24 Q. Do you recall money also being paid, over $60,000 to rehab 

25 centers to keep rehab centers open? 

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Correct. 

Page 90 ~ 

Q. Hundreds of thousands of dollars were paid to charities? 

A. Correct. 

Q. I need more room up here. Cancer research, Da~ ?arber 

Foundation? 

A. Correct. 

IHE COURT: Dana. 

MR. NUR~K: I'm sorry, Da~a. 

Q. 911 Fund? 

A. Correct. 

Q. Do yOlU remerc.ber that? St. Margaret's Church, do you 

12 remember that? 

A. Correct. 

Q. Santa's Little Helper donations? 

15 A. Correct. 

16 Q. Autism Research Foundation? 

A. Correct. 

18 Q. :Ln addition, were you aware t!iat Bob Eremian was :naking 

19 donations to schools in Antigua? 

20 A. Yes, I was. 

21 Q. That he was helping building up the infrastructure there? 

22 A. Yes. 

23 Q. Now, initially when you became involved with this account, 

24 you spoke to Mr. Flowers, the accountant? 

25 A. Correct. 

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Q. And you were aware of a nuclber of things that had been 

developing which gave you a sense of comfort in getti~g 

involved in managing this money? 

A. Correct:. 

Q. One of those things that I think you told us on direct was 

that you had learned that your brother Robert Eremian had 

gotter. permission from the Court to go work for 50S, correct? 

A. Yes. saw the memorandum. 

MR. WYSHAK: I object to that characterization. 

:HE COURT: Sustained. 

Q. Didn't you testify to tha~ on direct examination? 

A. Yes. 

MR. WYSHAK: I object. It's hearsay. 

:HE COURT: Sustained. 

~R. NURIK: Judge, she testified in ~esponse to his 

16 question. 

:HE COURT: Sustained as to the way that was asked. 

MR. KURIK: All right. May I have this marked as my 

19 next exhibi'C. 

20 lRE COURT: Have you shown it to the government? Do 

21 you know what it is? 

22 

23 

24 

25 

MR. WYSHAK: Can we have a sidebar, your Honor? 

THE COURT: How much longer do you have? 

MR. KURIK: Oh, have a while. 

THE COURT: Good, so why don't we pass this by, and 

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we'll do this at the break. Or do you need to do it right now? 

MR. NURIK: I was going to do it right now. 

THE COURT: All right, well, let me see you. 

SIDEBAR CONFERENCE: 

THE COURT: Yo~ can ask her if she's seen it. 

MR. WYSHAK: Without identifying what it is, your 

Honor --

"HE COURT: Right. 

MR. WYSHAK: because I don't believe there's 

THE COURT: It's clearly admissible as a court 

11 document, but it's ar. impermissible inference that that shows 

12 that SOS was doing what it was doing here in Massachusetts. 

13 MR. WYSHAK: Exactly. Mr. Eremian's representation to 

14 Judge Tauro and to the U.S. Attorney's office was, aga~n, that 

15 he was just a corc.puter consultant, not the owner, not the 

16 operator. He lied to Probation about what he was doing, and 

17 they sho~ld not be able to profit --

18 THE COURT: Excuse me, excuse me. Ilm going to allow 

19 him to ask whether she's ever seen this before without your 

20 saying what it is. I wi:l deal at another point whether itfs 

21 admissible for anot~er purpose. 

22 MR. NURIK: She did testify on direct examination 

23 IHE COURT: I don't know exactly how it's worded, but 

24 the way you've asked the question, it was as if J'..l.dge :auro 

25 allowed ~im to do this kind of gambling the way you worded it. 

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I don't remember how it came out, bet I'm not going to allow 

that impermissible inference that a judge of this court 

permitted the kinds of activities that went on. 

~R. NURIK: Well, wait. All I am saying is and all 

~his document says, that based upon the representations of what 

Mr. Eremian and his counsel said he was doir.g, he was given 

permission to go. The goverr.ment obviot:sly has argued and will 

continue to argue 

:HE COURT: Excuse me. You're not doing it through 

this witness unless she's seen it. 

MR. NUR:K: Well, she has seen it. 

THE COURT: Well, I don't know that. 

~R. NUR:i:K: Well, that's what I didn't have a char.ce 

14 to--

15 MR. WYSHAK: No. When did she see it? Not at the 

16 time it was created. What, did you show it to ter? 

MR. NURIK: No. Wait till you hear the testimony. 

• 8 THE COURT: Well, I will hear what the testimony is 

:9 and then make certain j~dgments, but the one thing yo~ a~e not 

20 doing is making an inference to this jury that Judge Tauro or 

21 Pamela Lo:nbardini expressly perr.,itted him to do the kind of 

22 gambling activiti.es that i-: is undisputed were happening in 

23 chis Commonwealth. 

24 MR. HORSTMANN: What about willful blindness? 

25 MR. NUR:K: Hold on. I'm not saying anything other 

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16 

17 

20 

21 

22 

23 

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than what is in this documen~. 

THE COURT: The way you asked it was misleading. 

(End of sidebar conference.) 

MR. )lURIK: May I continue? 

THE COURT: Yes, wi':hout just show it to her. 

MR. NURIK: Well, let me ~1.ave it rr,a::::-ked first. 

THE COURT: For identification. 

MR. NURIK: Yes. 

(Document marked for identification.) 

BY MR. NURIK: 

Q. Let me show you a document marked for iden~ification and 

ask you if you have ever seen this document before. 

(Wi':ness exami:iing docume:it.) 

A. Yes, I have. 

Q. When have you seen the docume:it? 

A. I saw ic in 2002 after my brother received it. 

Q. How did you come to see it? 

A. He showed it to me. 

Q. okay, your brother meaning 

A. My brother Bob. 

Q. Bob Eremian, okay. And you read i~ back then? 

A. I did. 

Q. Okay, do you recall from looking at i~ now that it is in 

24 fact the same do:::ument you read back then? 

25 A. Correct. 

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MR. NUR:K: I'd like to offer it into evidence at thos 

point. 

THE COURT: All right, I'll take thac under 

advisement. 

Q. Well, let me ask you this: At the time, Were you made 

aware through your brother tha~ he had been permitted --

MR. WYSHAK: Objection. 

IHE COURT: Let me hear the quescion. 

Q. to retu~n to Antigua to work for 50S as a software 

cons'J.ltant? 

A. Correc':.. 

MR . WYSHAK: Objection. 

THE COURT: Sustained. 

Q. As a result of receiving this document, did it give you 

15 the comfort that you wanted or you needed in order to continue 

LO do the things you did ~or the account? 

MR. WYSHAK: I object. It assumes facts in evidence 

18 that she needed comfort. 

19 7HE COURT: Overruled. Illl allow this as to her 

20 understa~ding at the time she was engaging in this banking 

21 activity for her brother. 

22 A. Yes, it did. 

23 Q. Was your understanding that your brother had permission to 

24 return to Antigua to operate as a software consultant for 

25 Sports Off Shore? 

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A. Yes, it was. 

Page 96 

7HE COURT: Now, remember, that's not for the truth of 

it. It's as to what her thought process was at the ti~e. 

Q. Now, you also were aware, were you not, that Sports Off 

Shore in Antigua was licensed? 

A. Yes. 

Q. Okay. And at the time you were led to becieve that as a 

result of being licensed, that the activity that the compar:y 

was engaging in was legal? 

A. Yes. 

Q. And the handling of the account that you were involved in 

that rece:ved money from the activities of Sports Off Shore, 

:3 yell took and kept very accurate records? 

14 A. Yes. 

15 Q. Other than the iss:le that you pled g:lilty to, which was 

16 mischaracte~izing mar.eys earned as commissions, was everything 

else that was put into your records absolutely acc~rate? 

18 A. I tried my best, yes. 

19 Q. There was no attempt to hide anyt~ing? 

20 A. ~o. 

21 Q. Everything was transparen~? 

A. Very trar,sparent. 

23 Q. Okay. The checks that were made out to certain places 

24 were all properly identified? 

25 A. Yes. 

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Q. The money that ,;as received was properly identified? 

A. Yes. 

Q. Okay. Was there any attempt to hide the names on the 

account? 

A. No. 

Q. Okay. In fact, ~he account was opened in the name of 

Patrice Tierney and Robert Eremian? 

A. Yes. 

Q. Okay. No", you :old the ladies and gentlemen of the jury 

10 that you ",ere i:wolved in shipping some ~hings to Antigua? 

11 A. Yes. 

12 Q. You had been to Antigua how mar.y times? 

13 A. I believe five. 

}4 Q. And from what you learned from being there and from your 

13 conversations with your brother, is it fair to say that in 

16 Antigua 

TEE COURT: Which brother? 

18 MR. NUR=K: Very good. 

19 Q. Robert Eremian. :t's fair to say that just about 

20 everything needs to be brought in or iC1ported i:1to Antigua? 

21 A. Yes. 

Q. Okay. Any goods, any appliances, anything you need to 

23 live a normal life, you've got to i~port it in or pay 

24 exorbitant prices in Antigua, correct? 

25 A. Correct. 

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THE COURT: Just I'm trying to get a sense of 

scr.eduling. How much longer do you have? 

Page 98 

MR. NUR:K: Oh, I think we should break now, your 

Honor. 

THE COURT: Yes, enough is enough. She's been on for 

~wo hours. We'll take our break, 1::00 to 11:30 we'll be back. 

(Jury excused.) 

THE COURT: Ca~ I see cou~sel just on scheduling and 

that one evidentiary matte~. 

10 SIDEBAR CONFERENCE: 

11 7HE COURT: Let me start with the easy part first. 

J2 How much longer do you have? 

13 MR. KURIK: Ivell, I'd like to be accurate. Twenty 

l4 minutes. 

15 THE COURT: It doesn't have to be precise. And do you 

16 have much? 

17 MR. HORSTMANN: Not very much. 

18 THE COURT: All right. And will you have some 

redirect? 

20 MR. WYSHAK: Very little, but, you know, ~tTs unclear. 

THE COURT: So say we're done in the vicinity of 12:00 

22 to 12:15. 

23 MR. WYSHAK: I'm going to have Mr. Olsen. 

24 THE COURT: Olsen again is the 

25 MR. WYSHAK: He's a Florida agent who dealt with Dan. 

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:HE COORT: I see. So do~'t forget, we're going to 

like in the vicinity of 4:00. So who else would you have? 

~R. WYSHAK: We're going to finish with Mr. Craffey. 

MR. FISHER: He's the accountant. 

THE COORT: The accountant, okay. 

~R. WYSHAK: And then we have Sandra Lemanski. She'll 

be our last witness. 

THE COORT: Oh, she's going to be your last witness. 

MR. WYSHAK: Yes. So we'll probably rest tomorrow. 

THE COORT: YOil need some witnesses. 

MR. KOR:K: I don't have anybody till Mo~day. 

THE COORT: See what you can get. 

MR. NORIK: I can't get a soul. They're all from out 

14 of town. 

15 THE COORT: How about yours? 

16 MR. HORSTMANN: My investigator is down in ,lorida 

now. She flies back on Saturday. 

18 MR. NURIK: Well, we do have a charge co~ference. 

19 THE COURT: Yes, maybe we'll j~st do the charge 

20 conference if we have to. 

21 MR. HORST~~NN: And Rule 29. 

22 THE COORT: Buh? 

23 MR. HORSTMANN: Rule 29. There's a lot to discuss. 

24 THE COURT: Let me just PCJt it this way: There's no 

25 way on earth I am ruling on the complexity of the issues here 

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on a Rule 29 before the close of all the evidence. You can 

make the argu~ent, but it's differe~t than my ruling on it. 

have:1't seen a brief. I just for the first time -- please, 

I've been begging for your theory 0= the case. Other than good 

faith, which is a fact question, I havenrt heard it. So if 

~here are legal nitpicks here, I donTt know it, and IT~ not 

going to sort of rule off the cuff. That's not going to 

happen. So, ideally, when can I have a brief on it? 

MR. HORSTMA:iN: I will get you something tonight. 

~o was plan:1ing on tomorrow, but Irll get it to you tonight. 

THE COURT: I have little hints for a cou?le 0: things 

12 on your objections to the jury instructions, but, I mean, even 

13 ~hose are fact-based like ~he safety valve issue, you know, 

14 whether or not it was legal in one place and illegal in 

15 another. 

~ 6 ~R. HORSTMA~N: I think the big issue is the Internet 

portion of the gambling and that the government hasn't 

18 differentiated between the two as to any coun~ or any better. 

THE COURT: Ca~ I saying something? Every single time 

20 you throw up the SOS card with the big 800 number on it, I'm 

21 net sure that he~ped you, so let me just --

22 MR. HORSTVlli~N: But I don't have the burden. 

23 ,HE COURT: I'm just -- so we think we're going to be 

24 done, Mr. S~ern, this morning with her. 

25 MR. STERN: Okay, good. 

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THE COURT: Maybe 12:15 or somethi~g. B~t on the 

document, here's my concern about it: It's an official reco~d 

of the CQ1.:rt. mean, it's relevant and it's authentic and 

would norhtally come in. The concern t:!1at I have -- and it sort 

of places timing and when he went. It's relevant as a business 

record or a public record. My concern is, any implication that 

Judge Tauro blessed this by le~ting him go is inappropriate, 

and that is essentia~ly the inference you're seeking to leave. 

So I'm inclined to let it in but with some sort of curative 

10 instruction. 

MR. WYSHAK: We:l, your Honor, the bottom li~e with 

l2 this is, if that goes in, we're goir.g to have a mini-trial here 

because ?am Lombardir::i --

14 THE COURT: Fine, bring her in. I know Pam. I knew 

15 her in Essex County, and I knew her here, so 

16 MR. WYSHAK: The members of t~e U.S. Attorney's office 

17 specifically talked to Mr. Merberg. They brought the case that 

18 I gave to your Honor last night, the Cohen case, to 

Mr. Merbergls attent~on, told Mr. Merberg this SOS business has 

20 customers in the United States. 

21 THE COURT: You may have to 

22 XR. WYSHAK: So we're going to have a whole trial 

23 about this. 

24 THE COURT: You may have to. You may have to. But 

25 itTs good you warned the~ because then that's going to be their 

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call. But what 1m not going to let happen, especially with 

the e~tire press corps o~t there, is for you ~o make the 

argument that Judge Tauro of this court said it was okay or the 

P;:-obation Office of ttis court, and that was the implication 

~hat was left in how you asked it. 

MR. WYSHAK: And ~Q the extent that it's relevant for 

her state of ~ind --

THE COURT: Well, you asked about state of mind. I'll 

let h~m ask about state of mind. 

~R. WYSHAK: Right, but he wants to offer this 

11 document, obviously, for the truth of its contents, and part of 

12 what's missing in this document is the representations made by 

Mr. Merberg ar.d Robert Eremian to Judge Tauro and to the J.S. 

Attorney's office. It's not contained ~n the~e, and 

15 !RE COURT: chat's right. I'm glad you were on that. 

16 So you think about whether you really want this in because I 

i 7 will let therr, put on Ms. Lombardini and I will let the::t put 

18 on -- who I s the prosecutor? 

19 MR. WYSHAK: Mr. Auerhatn. 

20 :RE COURT: I think you read that. You gave i~ 

21 to me before trial, and I'm very glad I had it in advance 

22 because I thought about it. And I would give some sort of 

23 cautionary instruction tha~ that is not evidence as to what was 

24 ~old to Judge Tauro or tha~ he had any knowledge at all about 

25 what wetve heard because what I've heard here, some of it is 

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plain:y illegal, and the notion that J~dge Tauro permitted this 

would be incorrect. 

MR. NURcK: Well, I would --

:HE COURT: Some of ie. I'm not saying 

understand you have some technical arguments about the 

Internet, but a lot of it was over the phone. 

MR. KURIK: It would not be my inten~ion in any way, 

shape, or form to disparage the court or misrepresent what the 

court knew. The ciocume~t is very specific. The government has 

10 its opportunity to argue what it wishes to argue regarding the 

11 document, but it is in fact an official court docunenti and 

12 whether we opened the door or not, with every witness that has 

23 come into this courtroom that they have called, they have asked 

14 about their state of mind and their own belief regarding 

13 whether it was legal or not. This document bears on the sta~e 

16 of mind and is relevant: to that issue. 

17 NOW, at the end of the day, you should know that the 

18 U.S. Attorney's office was fully aware by a memo that was 

19 issued by an IRS agent back in the late 190s, actually, back 

20 arOU;1Q the time of 2000, in which he identified all of the 

21 issues that are of concern to the goverr.ment in this case; in 

22 other words, that the activities were ar. on-the-ground 

23 operation. I have a copy of that memo. I can show it to you. 

24 It's Agent Howe's meno. 

25 THE COURT: Do you have it? 

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MR. WYSHAK: Yes, ar.d what Mr. Eremian to~d Agent Howe 

vIas, "In :997 I went down -:::0 Antig'.,.la and started this business 

and went bankrupt in the =irst year. Ar.d since that t~me I'm a 

cor.~puter consul :'ant, and there are other people who I don I t 

know their names who are running this business," and clearly 

separated himself from the ownership and operation of this 

business, except to the extent ttat he had sold them a software 

package and was r..aintaining the computer software. 

:HE COURT: I am simply saying this: This is 

10 relevant. It is a business record. I will allow this in, but 

11 I would do this with a curative instruction that there is co 

~2 evidence that Cudge Taura understood the full scope of what was 

13 happening that you've heard about in this tria:, beca~se the 

14 one thing that's undisputed is all these hur:dreds of thousands 

15 of do:lars of cast collections in paper bags and people placing 

16 calls. The~e is no idea, nothing that I think either Pam 

17 Lombardini or Judge :auro would have known about that based on 

18 vlhat you 1 ve just told me. 

~R. NURIK: And I don't have any evidence to the 

20 contrary. wil~ say, ~owever, I do have evidence to the 

21 contrary that the U. S. Attorney' 5 office knew abo'.1t it. 

22 THE COURT: I'll leave that for where it is, and we 

23 may have to get into a mini-trial. 

24 MR. NURIK: And they did not object. 

25 THE COURT: But I'm going to tell them that this is 

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not ir. a~y way to be construed as Judge Tauro approving the 

activities that they heard about at this trial. So if you want 

~hat curative instruction --

MR. NUR:K: So we have to decide, if we want to offer 

it in, yo~rre going to give that curative instruction? 

:HE COURT: Yes, that's exactly righ~, so 

~R. STERN: I have a different question I want to 

raise. 

THE COURT: All right, go ahead. 

MR. STERN: Are you finis~ed with this? 

MR. HORSTMANN: Yes. Thank you. 

MR. STERN: This just has to do with the question that 

13 Mr. Wyshak asked Mrs. Tierney about co~versation5 wit~ me. 

14 Remember 'that towards the end? 

15 "HE COURT: Yes, yes. 

16 MR. STERN: ~ve have a disagree!Tlent as to wtat 

17 representations, if anything, I said. 

18 THE COURT: The "You donTt want ~o know"? 

~R. STERN: Right, right. 

20 :HE COURT: "You donTt want to know. u 

21 ~R. STERN: And I told Mr. Wyshak this morning when we 

22 talked about that, that was not my ~emory of our conversation. 

23 It was a different conversation. So I just want to make it 

24 clear--

25 :HE COURT: So what do I do with that? 

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MR. NURIK: I may have to call Mr. S~ern as a witness. 

MR. WYSHAK: Actually, yOCl know, you::c Honor, it was 

very clear to me. When we were discussing whetter there was a 

factual basis for Ms. Tierney to plead to aiding and abe~ting 

the £:11ng of false tax re~urns, I had a very clear 

conversation with Mr. Stern that he was comfortable with the 

plea because she had admitted to him she asked her brothe::c 

about the legality of w~at he was doing, and she was told, nyou 

don't want to know," and Mr. S-:ern felt that that amo-.:!nted to 

10 wcllful blindness. Now, the Ocher day when I told him I was 

11 going to ask her about that conversation, he had no 

12 recollection of it. This morning he calls me and says, "Yeah, 

13 now I recollect, but it had to do with her making paymen<:s." 

14 ~R. STERN: WeIll I recollect after talking with my 

15 c:ie~t t~at there was a discussion about something similar but 

16 not that. I have no 

:HE COURT: Well, do you remembe::c what it 

MR. STERN: Yes. 

19 MR. WYSHAK: It may have been something similar. 

20 :HE COURT: Let me just ask, without disclosing an 

21 attorney-client privilege, is --

22 MR. STERN: What I said to Mr. Wyshak this morning was 

23 ":hat now recall that we likely had a discussion that she had 

24 questioned her brot~er Bob about certair. payments for the kids, 

25 whether she should make these payments, and he on several 

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occasions in a very testy way said, "Those are fine. It's none 

of your business. It has to do with payments for the 

children. n 

MR. ~\fYSHAK: A:1d ::'hat doesr: J t even make sense. 

THE COURT: Well, this is the way this can be handled: 

Either so~eone asks her to go into greater length as to ~he 

context of it -- he's not a lawyer in the case so he can't do 

it -- or possibly, I don't know if that injects you into the 

trial. 

MR. NURIK: Which is the problem in ailowing the 

II testimony to begin with. 

12 MR. HORSTMANN: Judge, aren't these inadmissible 

13 settleme.:1t discussions? 

14 THE COURT: Well, it's not a civil case. I don't 

:5 know--

MR. HORSTMANN: I don't think the rule is limited. 

MR. WYSHAK: She's no~ a defendant in this case. 

18 THE COURT: I don't know. 

19 MR. WYSHAK: She's a witness being called by the 

20 government. 

21 :HE COURT: I don't know, but the truth iS I it ca~e in 

22 wi thout objection. 

23 ~R. NURIK: I request that the Court to stri~e it and 

24 admonish the jury to disregard it. 

25 THE COURT: No. At this point I have no basis for any 

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of that. It came in without objection. 

MR. NURIK: I thought I objected to it. 

THE COURT: Maybe you did. 

:1R. WYSHAK: A~d she hasn't even denied it. 

THE COURT: I don't remember that. 

MR. WYSHAK: She just said, "I don't remenber," like 

she doesn't remember ninety percent of whatever else wen':. on, 

so --

eHE COURT: That goes to the credibility of the 

10 witness. I don't renember whether you objected. We could find 

11 out. don't know. That will be for the record. 

12 MR. WYSHAK: But I am very concerned abo"J" 

13 :HE COURT: Mr. Horstmann is quick. He's looking this 

14 up. 

15 MR. HORSTMANN: It bo~hered me a~ the time. 

16 THE COURT: Settlemen~ discussions are civil, but 

17 don't know anything abo~t che plea colloquy discussions. 

18 MR. WYSHAK: Clearly if d~ring the course of plea 

19 discussior.s with the defendant, if the defendant makes 

20 admissio:1S to his lawyer 

21 THE COURT: Is there a proffer letter or something? 

22 MR. WYSHAK: couldn't use it against her if we we~e 

23 prosecutir:g her and she go~ up on the witness stand, but this 

24 is an entirely d:"fferent matte~ wheye she ' s a witness in 

25 another case. She's no~ a party. 

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THE COURT: I don't know. Just like that Exhibit 61 

where I have gained a huge a:nount of insight after doing legal 

research and thinking about it and hearing subsequent 

testimony, I'~ not going to shoot from the hip on ttis one. 

I've already ruled. I'm leaving it alone. How we deal with it 

subsequently, I don't know. Maybe you think about that too. 

don't know what I do. I mean --

MR. STERN: Well, I think it should be -- I certainly 

don't want to get into a mini-~rial. I don't want to be a 

10 wi tness it: -::his case. 

11 THE COURT: She said she didn't remember it, right? 

12 MR. STERN: Right. 

13 THE COURT: So I'll just remind them that questions in 

14 a -- what I would propose is just say, "With respect to 

15 anything havir.g to do with her attorney, she didn't remember 

itt ar:d, remember, any ir.for~at~on in a question is not 

17 evidence:"n the case and you cannot consider it." That is my 

18 proposal. Think about it, take a break, and let's hope we 

19 finish this soon. 

20 (End of sidebar conference.} 

21 (A recess was taken, 11: 15 a.m.) 

22 (Resumed, 11:44 a.m.) 

23 MR. HORSTMAKN: Judge, may I be heard briefly a~ 

24 sidebar? 

25 THE COURT: l'Iel1, can't you just say it so we don't 

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take tte -- wha~'s the issue? 

MR. HORSTMANN: Rule 4:0, your Honor, precludes the 

introduction of any plea discussions, and at the time that 

the --

THE COURT: Rule 410? I'll look at it. 7hank you. 

MR. HORSTMANN: I'd move to strike. 

THE COURT: Well, there's nothing to strike. It was 

just a ques':ion. 

MR. NURIK: Your Honor, I'd request ~hat you give that 

10 curative instruction conce!:'ning that. 

11 THE COURT: I'm not doing anything until I read it, 

12 okay, so let's just get them in here( ar:d then I'll 

(Cury enters the courtroom.) 

14 THE COURT: Okay, Mr. Nurik. 

15 MR. KURIK: Thank you, yo~r Honor. 

16 THE COURT: Thank you. 

BY MR. NURIK: 

18 Q. Patrice, when we left off, I believe I was asking you 

19 about products in Antigua and the di:ficulty of getti~g things 

20 and buying things in Antigua. Do you remembe::.- that? 

21 A. Yes. 

22 Q. Okay. And with respect to your job of taking care of that 

23 accour.t, did you from ti:::te to t:me see that there were 

74 purchases beir:.g eade by credit cards for things, goods that 

25 ultimately had to get shipped cO Antigua? 

j 

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A. Yes. 

Q. And some of these things were tools, cOerect? 

A. Yes. 

Q. Some of these things were equipment, cOerect? 

A. Yes. 

Q. Televisions, appliances? 

A. Yes. 

Q. Okay, the types of things ~hat people use when they are 

living ordinary lives, even here? 

A. Yes. 

Q. You also saw that there were times that equipment was 

be~ng shipped in large containers? 

A. I didn't see it. 

Q. But you knew about ~t? 

A. Yes. 

Q. Yo-~ also knew there were times things were beirog shipped 

by FedEx's and other mearos, correct? 

A. Yes. 

Q. And feom time to time you would actually look at these 

20 expenditu::es, the credit card expenditures, and question your 

21 brother Bob about them, correct? 

22 A. Yes. 

23 Q. Correct? 

24 A. Yes. 

25 Q. And the reason was, because you really wanted to keep an 

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accurate reflect~on 0= what was going on? 

A. Yes. 

Q. And you wanted to make sure that if so~ething was being 

bought! you kr.ew that it was a legitimate expense that Bob had 

authorized? 

A. Yes. 

Q. And you wanted to know what it was for so you could 

pigeor.hole it in your QuickBooks, correct? 

A. Yes. 

Q. Now, you knew that your b~cther Dan was ~eceiving some of 

11 these thir.gs directly when they were pwrchased to be shipped on 

12 ~o Antig~a, correct? 

13 A. Correc'::. 

Q. You also knew that your brother Bob had two other 

l5 busi~esses in Antigua besides being involved w~th SOS, correct? 

A. Correct. 

Q. Let's talk about those. First of all --

18 ~R. WYSHAK: Objection. Can we ask the basis of the 

:.9 knowledge? 

20 MR. KURIK: Well, I'm going to ask her that. 

21 THE COURT: He can ask. 

22 Q. Were you aware, for exa:nple, when you were in Antigua that 

23 your brothe:- Bob was setting up a helicop~er charter service? 

24 MR. WYSHAK: Objection. How? Ie: cal2.s for a --

25 THE COURT: Excl:se me. Overr:Jled. Yes or no, and 

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then you will ask how, all right? Are you aware of that one 

way or another? 

TEE WITNESS: Yes. 

Q. How were YOt: awa:-e of it? 

A. I saw t~e helicopter. I rode in the helicopter with my 

morn. 

Q. And you learned from doing that and from your 

conversations with Bob that Bob had p~rchased t~at helicopter, 

correct? 

A. Correct. 

Q. And that that helicopter was going to be used for a 

business he was setting up to transport people around the 

:3 island sightseei~g? 

A. Co::-rect. 

15 Q. And in fact you went on one of t~ose sightseeing tours 

16 yourself? 

17 A. Correct. 

18 Q. Were yo~ aware of how that helicopter was registered, by 

':'9 the way? 

20 A. No. 

21 Q. You know for a fact, though, that Bob was the one that 

22 purchased that, right? 

23 MR. WYSHAK: I object, the basis of knowledge. 

24 THE COURT: Sustained, sustained. 

Q. Were yo~ aware of whether or not that helicopter --

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THE COURT: Do you know who purchased it? 

THE WITNESS: No, I don't. 

Q. Okay. Were you also aware of an individual when you were 

learning about the helicopter service by the name of ?eter 

Hallam? 

A. Yes. 

Q. And Pe~er Hallam was a pilot? 

A. Yes. 

Q. He was going to be involved with that? 

A. Correc:-'. 

Q. :n addition, were you aware t~at Mr. Hallam was involved 

12 with another business with you~ brother? 

A. Yes. 

Q. And what was that other business? 

:5 A. Uhm, large construction vehicles, uhm, equipment. 

:6 Q. Heavy machinery? 

2. 7 A. Heavy machinery, yeah. 

18 Q. Okay. And how did you learn that? 

A. : saw the pieces of equipment. 

20 Q. You asked your brother about it? 

21 A. ch-hc;h. 

22 MR. WYSHAK: Objection, calls for hearsay. 

23 THE COURT: Sustained, sustained. 

24 Q. Well, were you aware, for example, that that equipment was 

25 being used in Montserrat as a result of the volcano? 

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MR. WYSHAK: Objection. It calls for a hearsay 

answer. 

:HE COURT: Sustained. will allow what she saw, not 

what her brother told her. 

Q. Well, you saw activity, correct? 

A. : did see activity. 

Q. You saw that a business was being geared up for the 

purpose of providing heavy machinery for cons~ruction, correct? 

A. Correct. 

Q. And you knew that in fact some of that equipment was being 

11 ordered in the United States and being shipped over by Danny? 

12 A. Correct. 

13 MR. KURIK: May I approach the witness? 

14 :HE COURT: Yes. 

15 Q. Let ~e show you what we have marked as Defendant's 

16 Exhibit 317. Take a look at those photographs. 

(Witness examining photographs.) 

18 Q. And based upon your visits to Antigua, can you say whether 

or not those photographs fairly and accurately represent the 

20 general appearance of SCS1s offices or that house where the 

21 office were? 

22 A. Generally. 

23 THE COURT: What about them is different? 

24 THE WITNESS: I don't recognize "his wall, this clear 

25 glass. That looks like it -- that 1 s not familiar to me. 

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Everything else, the garage and the entrance, everything else 

is but not that. 

MR. NURIK: Okay, I wi:l of:er into evidence all but 

~hat one photograph. 

)1R. WYSHAK: No. 

THE COURT: Excuse me. Go one by one, what it is that 

you recognize. 

THE WITNESS: I recognize 

THE COURT: First of all, did you take these pictures? 

THE WITNESS: No. 

MR. WYSHAK: All right, I'm 

THE COURT: Excuse me. Let me just go through them 

13 one by o~e. What exhibit? We are at 317. 

MR. KUR:K: They'~e all a composite. If you want to 

l5 mark them A, B, and C, we can do that. 

:HE COURT: Yes, but she does~lt recognize one of 

17 ~hem. 

18 MR. NURIK: That's right. 

19 THE WITNESS: recognize this as the dining area and 

20 the garage that we would enter the house through. 

21 THE COURT: Who took these pictures? 

22 MR. NURIK: Your Honor, I don't know who took these 

23 pictClres. have these pictures, and I believe they to be fair 

24 and accurate representations. However--

25 THE COURT: Excuse me. Were they taken back then, or 

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were they taken recently? 

XR. NURIK: don't know when they were taken, and I'm 

asking her ~o identify whe~her or not they're fair and accurate 

representations, and she says there's o~e she doesn't, so if we 

separate that, we can offer all the others. 

XR. WYSHAK: Well, I object to not offering the 

critical photo. If he wan~s to put the package in --

THE COURT: Excuse me. Overruled. If you have 

somebody else who was there, you can ask about itt or you can 

10 cross-exa~ine based on it. So go ahead. 

11 THE WITNESS: Okay, recognize this as the -- this is 

a patio that would have been extended, but you entered through 

13 the garage ::0 get to the patio. T'1is is the garage that you 

14 would enter into the patio. ItTs a very full garage. Again, 

15 this is the garage with another angle of the patio where 

furniture and dining areas were. This is the outside, the 

exterior of the house with a gate and the garage. There's not 

18 much else you can see there. And this ~s a fuller view of the 

19 different dining areas in the enclosed patio. 

20 Q. If you would please separate the or.e from that pile, the 

one that you don't recognize. 

22 A. Okay. 

23 X~. KUReK: And I would offer the other photographs as 

24 composite Exhibit 

25 THE COURT: 317, and the one what is it called? 

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:HE CLERK: It's five photos. 

:HE COURT: Five photos. And the one that isn't make 

it 317-A foo:: Identification because there may be other people 

who so ffiake ~he other one 317-A. All right. 

(Defendant Exhibit 317 received in evidence.) 

(Defendant Exhibit 317-A marked for identification.) 

~R. NURIK: May I publish them, your Honor? 

Q. Let's go through the firs~ photograph. Is this what the 

outside of the house where the offices are looked like? 

A. Yes. 

Q. So you would go through a gate? 

A. Yes. 

Q. And then through a garage? 

A. Yes. 

Q. Okay. So ~he garage entrance is here? 

A. Corree":. 

Q. And this is a view of what? 

A. The ga:-age. 

Q. Okay. 

A. And the patio. 

Q. So as you enter the garage, you wo~ld see this. You would 

22 then see an inside patio here? 

23 A. Correc::. 

24 Q. And then you see sliding glass doors there? 

25 A. : see them. 

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Q. Okay. And is that ",here behind that some of the office 

activity was? 

A. Correct. 

Q. Okay. This is another view of what? 

A. The garage. 

Q. Okay. And when you were there, there was always things 

going on like this in the garage? 

A. Yes. 

Q. Equipment? 

A. Yes. 

Q. And this view is still from the garage? 

A. Yes. 

Q. But this gives you a clearer view of the dining area? 

A. Part of the dining area. 

Q. Now, that dining area is covered but it's open air. In 

16 other words, it's not under air conditioning, correct? 

17 A. Correct. 

18 Q. And that's the dining room table right there? 

19 A. Yes. 

20 Q. Okay, is that where you had dinner? 

21 A. Yes. 

22 Q. okay. And then this is another view of the dining room 

23 table, and then you can see the sliding doors there? 

24 A. Correct. 

25 Q. Where the office activity took place? 

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A. Correc~. 

Q. NOw, the government had shown you a summary chart and 

asked you questions concerning a large amount of money that 

they suggested you received fro~ the account. Do you remember 

that testimony? 

A. I remember tr.e chart, yes. 

Q. Okay. Now, in that amounc of money ~hat they showed you, 

is it fair ~o say that you were paid for things other thaD 

gifts? For example, you were reimbursed for expenditures you 

:0 had made? 

11 A. Yes. 

12 Q. ~ow, you were servir.g essentia~ly as the rock of the 

13 family, correct? 

14 A. Correct.. 

15 Q. You were taking care of Bob's kids? 

16 A. Correct. 

Q. Taking care of the househo:d? 

A. Correc-:'. 

Q. Trying to help Bob with paying for all of the rehabs that 

20 kids were in? 

21 A. Correct. 

22 Q. Taking care of problems with the estranged wife? 

23 A. Correct. 

24 Q. Okay_ And at the same time you were waiting hand and foot 

25 on your mother who was ill, correct? 

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A. Correct. 

Q. You heard questions from Mr. Wyshak regarding phone calls 

you had in 2009 with my client, Danny? 

A. Yes. 

Q. And it was suggested that in a period of cwelve months, 

you may have spoken to him ten or more times a month? 

A. Correct. 

Q. Over a hundred times, correct? 

A. Correct. 

Q. And I believe you respo~ded to him by sayi~g that at that 

11 time your mother was seriously ill, correct? 

12 A. Correct. 

13 Q. Did she ultimately pass away? 

14 A. Yes. 

15 Q. .iere you keeping Danny informed of wha': was going o~ with 

16 your mo:n? 

17 A. Daily almost. I tried to. 

MR. NURIK: May I have one mo~ent, your Honor? 

19 (Pa:1se. ) 

20 Q. One final thing. When you testified earlier that your 

21 brother Bob iad pled guilty initially sometime after the raid 

22 in Massaciusetts, were you aware that he pled guilty to tax 

23 charges? 

24 A. Yes. 

25 Q. So originally he was charged with illegal gambling? 

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MR. WYSHAK: object to this. 

MR. NURIK: If she knows. 

THE COURT: Well, I --

~R. WYSHAK: Misleading cross-examination, and ~herers 

no basis she knows about plea negotiations. 

THE COURT: need the question. What's the question? 

Q. Was he originally charged 

THE COURT: No. I'll allow as to what her 

understanaing was. 

Q. Your understanding, was he originally charged with 

11 gambl:'ng charges? 

THE COURT: Do you know? 

13 A. Originally, yes. 

Q. And do you know that ultimately he was allowed to plead 

15 guilty to tax evasior.? 

A. Yes. 

17 Q. Okay. And you know that ultimately he paid his tax on 

::.hat? 

19 A. Yes. 

20 Q. And ultima~ely paid his restitution on that? 

21 A. Yes. 

22 MR. NURIK: Your Honor, I would finally offer that 

23 last exhibit, the order, into evidence, acknowledging your 

24 instructions. 

25 THE COURT: All right, I allow i~ in. But let me just 

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say this: You ' ye about to see a document that comes from this 

court having to do with Mr. Erer.:ian I s probation, ar.d it speaks 

for itself, but the bottom line is that he was permitted to go 

~o Antigua ~o work duri~g the course of his probation. 

However, there is no evidence that ttis court or the Probation 

Office was ever told the nature of what the business was in 

Antigua or what Was happening in Massachusetts. So this will 

establish timing of certain activities that are relevant to 

this case, but it should in r.o way be viewed as the cour~ 

10 permitting anything that happened in this case. 

11 (Defendant Exhibit X received in evidence.) 

Q. Witn respect to this document which you said you saw back 

13 when it was generated in 2002, correct 

14 A. Yes, yes. 

15 Q. in particular, lTd like you to focus on the fact that 

16 IfAssista:1t United States A::.torney Jeffrey Auerhah:l is aware of 

Mr. Eremian1s employment a~ Sports Off Shore and has no 

lR objectio:l to his traveling to Antigua for work purposes. u 

A. Yes. 

20 Q. You saw that back then, correct? 

21 A. I did. 

22 Q. Okay. Now, as a result of reading this document, did that 

23 make you feel more comfortable about being involved with the 

24 account? 

25 A. Yes. 

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Q. Okay. And ~s it fair to say that Bob Eremian was, from 

what you saw, providing this informatior. to others? 

A. Yes. 

MR. NUR:K: Okay, I have no further questions. Thank 

you. 

CROSS-EXAMINATION BY MR. HORST~~NN: 

Q. Good afternoon, Mrs. Tierney. My name is Pete Hors"::mann1 

and I represent Todd Lyor.s. ~"i'eTve never met before, ~ave we? 

A. No, we have not. 

Q. Prior to the time that you appeared here in Federal Court 

11 for purposes of entering a plea in front of Judge Young, you 

12 si.gneci a plea agreement with the U.S. Attorneyts office, 

correct? 

14 A. Yes. 

15 Q. okay. And you reviewed that plea agreement before you 

'-6 signed it, right? 

A. Yes. 

18 Q. Okay. And you reviewed it with your attorney, correct? 

19 A. Correct. 

20 MR. HORSTMANN: May I approach the witness, your 

21 Honor? 

THE COURT: You may. 

23 Q. Mrs. Tierney, showing you what's marked for identification 

24 as Exhibit 318, Ifd ask if you recognize ~hat document? 

25 A. Yes. 

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Q. And directing your attention to the second-to-last page, 

is that your signature on the second-to-las~ page? 

A. Yes. 

Q. Okay. Ar.d is that your attor~eyls signature? 

A. Yes. 

Q. And is it signed by the United States Attorney's office 

for the District of Massachusetts? 

A. Yes. 

Q. Okay. And is that the plea agreement that you entered 

10 into before agreeing to plead guilty in front of Judge Young? 

11 A. Yes. 

12 MR. HORSTVANN: I'd offer that as Exhibit 318. 

13 MR. WYSHAK: May I see it? 

14 (Document shown t::> Mr. Wyshak.) 

15 TEE COURT: v?ell, maybe it would make it subject to 

16 any sanitization. Is that w~at yo~'re saying? 

17 MR. WYSHAK: Well, it makes reference t::> the 

information which is attached as part of this document, which 

19 is not attached, so I would just ask tha:: the information be 

20 attached, and then I have no objection. 

21 MR. HORSTVANN: The information needs to be redacted 

22 in one area, but other than treat, I have no objection to that. 

23 THE COURT: A~l right, fine. We'll work on it. 

24 (Defendant Exhibit 318 received in evidence.) 

25 Q. Mrs. Tierney, you were sLown an exhibi~ on direct 

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examination that related to -- it was a check tjat was made 

payable to you by ~r. Kennet~ Lindsay, correct? 

A. Correct. 

Q. And those were the proceeds from the sale 0: a timesha:-e, 

correct? 

A. Correct. 

Q. All right. A~d what wasn't show~ to you, I believe, is 

the deposit slip that accompa~ied that. Do you remember the 

amount of that check? 

A. Yes. 

Q. All right. And is that the deposit slip chat shows that 

12 check goi:Jg into the account that you managed for Mr. Eremian? 

A. Yes. 

Q. All rig~t, you didn't deposit that into your own account, 

'5 did you? 

16 A. No. 

Q. And that went in on September 17, correct? 

18 A. Yes. 

19 MR. EORSTVANN: I would offer this as the next 

20 exhibit, if it's not in already as part of the governrnent1s 

21 exhibit. 

22 THE CLERK: I don't know if it's in. 

23 MR. WYSHAK: No objection. 

THE CLERK: 319. 

25 MR. HORSTVANN: Thank you. 

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(Defendant Exhibit 319 received in evidence.) 

Q. Now, with respect to the plea agreement that you entered 

into with the United States At~orney's office, you were not 

charged with any racketeering offenses, correct? 

A. No. 

~R. WYSHAK: Objection. 

:HE COURT: Overruled. 

Q. You were not charged with any money laundering offenses, 

correct? 

A. Ko. 

Q. And you were not charged with any violations of the 

12 Unlawful In":ernet Gambling Enforcement Act, correct? 

13 A. No. 

14 Q. And du~iDg this period of time that you were assisting 

15 Robert Eremian and the family, you testified that Robert 

16 Eremian paid over $3 million in taxes to ":he federal 

govern~ent, corYect? 

18 A. Correct. 

19 MR. HORSTlA.ANN: No furtt:er questions, your Honor. 

20 REDIRECT EXA~INATION BY MR. WYSHAK: 

21 Q. Ms. Eremian -- sorry. Ms. Tierney, do you remember when I 

22 asked you on direct examination about the glass and the people 

23 sitting behind the glass on computers? 

24 A. Yes, I do. 

25 Q. You denied that, righ~? 

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A. I deGied knowing that the glass was there. 

Q. Well, okay. You were just shown a photo, at least two 

photos. Showing you this one here which you said you 

recognized --

A. eh-huh. 

Q. -- okay, that's glass, is it ~ot? 

A. Correct. 

Q. Okay. Ar.d here's a closer one again showing by the dining 

tablet correct, the glass? 

A. Correct. 

Q. Correct? And isn't what's depicted in both of those 

~2 photos t~e same thing that's deplcted in Defendants' 

13 Exhibit 317-A, that this is a close-up of those glass doors? 

(Witr.ess examining photograph.) 

:.5 A. It appears to be. 

16 ~R. WYSHAK: I offer it, your Honor. 

17 :HE COURT: All right. 

(Defendant Exhibit 317-A received in evidence.) 

19 Q. All right, S0, now, showing you tn~s pho~o w~ich is 

20 Defendants f 317-A, that 1 s what you see if you lool< through that 

21 glass, right? 

22 A. 7hat's what I see, yes. 

23 Q. And that's what you did see when you were there, correc::? 

24 A. = saw co~puters and telephones. 

25 Q. Okay. So ~hat's the glass ?ardon me if I described it 

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as a wall previously, but they1re sliding doors, correct? 

A. : don'c remember if they slide. 

Q. Okay. 

A. :t looks like a slide~. 

Q. Whether they slide or not, they appear to be glass visible 

from the dining area through wh~ch you can see people on 

computers. It appears to be an office area, correct? 

A. Correct. 

Q. And that was visible to you when you dined, as is ap?arent 

:0 from this photo, at 50S? 

11 THE COURT: That's a question. 

THE WITNESS: Oh, I'm sorry. T didn't --

13 THE COURT: Is that a question? 

14 MR. WYSHAK: Yes. 

15 A. Your question was? 

:6 Q. It's visible to you when you dine from the dining room, 

right? 

18 A. Yes. 

19 Q. And just so the record is clear, you were there in 1999, 

20 correct? 

21 A. = don'~ remember the date, but --

22 Q. Okay. Well, I'll show you this document and see if this 

23 ::-efreshes your recoll.ection. 

24 A. Okay. 

25 Q. You can tell us the years that you visited Antig~a. 

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(Witness examining document.) 

A. For the 2008 where there are two, that must have been me 

and my mO~f cor~ect? 

Q. do~'t know, Ms. Tierney. You would know better than I. 

A. Okay. Well 

Q. So you were there in 2008? 

A. 2008. I don't have my passport. - would tave to check r..y 

passport. 

Q. Okay, well, that's a Customs printout of your travel. 

A. Okay. 

Q. You can see that, correct? 

A. Yes. 

Q. Okay, so does that refresh your recollection as to ~he 

14 years that yo~ went to Antigua? 

15 A. Yes. 

16 Q. Okay, so what years were they? 

A. :999, 2000, 2008, 2009. 

18 Q. Okay. Ar:.d do you remembe::::- on which of those trips your 

husband was present with you? 

20 A. In 1999. 

Q. Okay. And the otter one? 

22 A. Probably 2008. 

23 Q. _ war.t to show you this documer.t ar.d ask you if it 

24 ~efreshes your recollect~on. 

25 (Witness examining document.) 

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A. Okay. 

Q. Does it? 

A. Yes, so : was o:f a year. It was 2009, not 2008. 

Q. All rig~t, so he was there 

A. Twice. 

Q. -- twice, once in '99 and the second time in 2009, 

correct? 

A. Correct. 

Q. And I assume on both occasions you and he dined in that 

10 dining area? 

11 A. Yes. 

Q. All rig~t, now, you were asked questions about your plea 

13 agreement with the government by Mr. Horstmann, correct? 

14 A. Yes. 

15 Q. And that plea agreement was a result of negotiation 

16 between your la"lflyer and the ["nited States A::tor:1ey l s office, 

correct? 

18 A. Corre:::t. 

19 Q. To achieve a result that everybody thought was fair? 

20 A. Correct. 

21 Q. Correct? You understood that you could have bee:! charged 

22 with more serious charges, did you not? 

23 MR. HORSTMANN: Objection. 

THE COURT: Overruled. 

25 A. Correct. 

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Q. Okay, but the United States didn't do that and resolved 

the case by way of a tax plea; fair to say? 

A. Correct. 

Q. All right, now, this lettey from ?robatioD, Cefendants' 

Exhibit 3:5, it's your testimony that your brother actually 

showeci you this document? 

A. Yes. 

Q. And I believe that Mr. Nurik asked you if that alleved 

some of your apprehension. Were yot.::. apprehensive abo"..1t -- do 

:0 you recall him aski~g you ~hat? 

,1 A. Yeah. I didnft recall him saying "apprehension." It made 

me feel like I felt = could do the work for him. 

,3 Q. Well, did you nave some concer~s prior to that that you 

14 shouldn It be involved in what he was involved in? 

:5 A. Yeah, yes. 

16 Q. And then he showed you this document, co~rect? 

A. Yes. 

18 Q. And you have no idea what he told Judge Tauro about what 

19 he was doing in Antigua, do you? 

20 A. ~o, except for what I read here. 

21 Q. Well, were you present at any court 

22 A. No. 

23 Q. -- sessions? 

24 A. "0. 

25 Q. ~o? Do you know what his lawyer, ~r. Merberg, told 

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Judge Tauro? 

A. Ko. 

Q. Do you know what Mr. Merberg represented to Pam Lombardini 

fron tte Department of Probation? 

A. No. 

Q. Or what Mr. Erenian, your brother Robert Eremian, 

~epresented to the Jepartment of Probation? 

A. No. 

Q. No, So, so far as you know, he told them that he was some 

10 kind of computer consultan~, correct? 

11 A. Correct. 

12 Q. Which is what he to:d you? 

13 A. Correct. 

14 Q. Right. So you would agree, if in fact he was the owner 

15 and operator of an illegal gambling business, that he would 

16 have lied to the court? 

A. Yes. 

Q. Okay. As he lied to you, correct? 

19 A. According to this document, he lied to the court, I guess. 

20 Q. Okay. So the fact that he was allowed to go back to 

21 Antigua was because he l:ed? 

22 MR. NURIK: Objection. 

23 THE COURT: Overruled. 

24 Q. Correct? 

25 A. = can't say that he lied. I wasnft ~here. I wasn't 

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present. 

Q. Okay. But if he did, this would Clot be something that the 

court or the Department of Probation or the U.S. Attorney's 

office could rely upon if they were lied ~Of correct? 

A. Correc:.. 

MR. KURIK: Objeccion, calls for speculation. 

THE COURT: Yes, sustained, sustained. 

Q. Did you have a conversation with your brother about this 

document? 

A. Yes, when he had the document. 

Q. Okay. Did he tell you that he employed people in 

12 Massachusetts 

13 A. Ko. 

14 Q. who solicited customers for his business in SOS? 

15 A. No. 

16 Q. Did he tell you that they collected money fron ga~blers 

17 here in Massachusetts? 

;8 A. No. 

::.9 Q. Did he tell you that those people who collected that money 

20 packed it in FedEx boxes and shipped it overseas to A0tigua? 

21 A. No. 

22 Q. He didn't tell you any of that, righc? 

23 A. No. 

24 Q. And if those were in fact the facts, he lied to you? 

25 MR. KURIK: Objeccion. 

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:HE COURT: Overruled. 

Q. Correct? 

A. Yes. 

Q. All right, now, the amo'J.nt of mO!1ey that was drawn out of 

that Bank of America 0933 account by you 

A. Yes. 

Q. you were asked O!1 cross-examination whether or not some 

of that money was to reimburse you for expenses; is that fair 

to say? 

A. Yes. 

Q. All right. Now, clearly you ~ad access to the money in 

the 0933 account, correct? 

A. Yes. 

Q. You had access to money in the nanny account, for a bette~ 

15 term, the account that you were usir,g to pay the expenses for 

:6 "':.he children? 

17 A. Correct. 

18 Q. And the household in Lynnfield, correct? 

A. Correct. 

20 Q. You had access to an account that was paying some of your 

21 mother's expenses, correct? 

22 A. Correc<:. 

23 Q. And all those three accounts were funded by your brother 

24 Bob Eremian? 

25 A. Correc::. 

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Q. Correct? So yo~ have access to three accounts that have 

~ons of money in them, correct? 

A. The three accounts did not have tons of money in them. 

"ould draw from his account for what the family and what the 

other account needed. 

Q. You would fund the other two accounts fron the 0933 

aCCO'.1nt? 

A. Yes. I would do an internal transfer. 

Q. Okay. But you kept all those accounts funded? 

A. Minimally, yes. 

Q. Mininally? 

A. Yes. 

Q. ~ot sufficient to pay the required expenses for the 

:4 children or for your mother? 

15 A. They were varied. I cried to keep it right to the penny, 

16 but there were odd expenses. 

Q. Odd expenses here and there? 

18 A. Yes. 

19 Q. ~ot significant amounts of money, correct? 

20 A. No. 

21 Q. Okay. So to the extent that you may have been reimbursed, 

it was for sreall change? 

23 A. A couple thousand dollars. 

24 Q. And the reason that you had this obligation to care for 

25 Robert Eremianrs children, his familY, he had a sick wife? 

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A. Yes. 

Q. And he had children with problems? 

A. Yes. 

Q. Correct? And he left themj isn't that fair to say? 

A. He tried don't think that's fair to say that he left 

them. 

Q. He chose not to be wi~h them? 

A. He chose 

Q. He chose not to be a parent? 

A. He chose to first take care of his wife so that she could 

11 be better to take care of ~he children; and the children, they 

12 would also have their own problems to deal with. I didn 1 t -- I 

13 don 1 t 

14 Q. For the period from 1996 to today, he's been in Antigua, 

15 correct? 

16 A. ~ot solely, but, yes. 

Q. Pretty much, right? 

A. Back and forth. 

19 Q. Pretty much. He decided to live and stay in Antigua, 

20 correct? 

21 A. He came back to live in Massachusetts when the children 

22 were in the Massach~setts home for weeks at a time. 

23 Q. For a few weeks? 

24 A. Weeks at a time. 

25 Q. Okay, all right. It's not the same as being a full-time 

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hands-on parent, is it? 

MR. NURIK: Objec~ion, yo~r Honor. 

THE COURT: sustained. 

Q. Okay. And just so the record is c~earf you were asked on 

cross-exa~ination about this helicopter business and this heavy 

machinery business, correc~? 

A. Yes. 

Q. It f S not your claim, is it, t~at the money t~at went into 

the 0933 account came from those businesses? 

A. No. 

Q. No, okay. So the record is clear, the r:'.oney that went 

12 into the C933 account, which you characte~ize as commissions 

13 A. Correct. 

14 Q. -- came from SCS, correct? 

15 A. SOS commissions for consulting, yes. 

16 Q. ~OWr when I asked you q~estio~s about some of the details 

17 involving account activity, such as selling Red Sox tickets to 

18 people a~d, you knowt some~imes getting paid and somet~rnes not 

19 getting paid, you seemed somewhat oblivious. Do you recall 

20 that? 

MR. NUR=K: Objection. 

22 :HE COURT: Sustained. 

23 Q. Well, you weren't able to recall with any acc~racy? 

24 MR. NURIK: Objec~ion, leading. 

25 :HE COURT: Well, not because it's leading, but I'll 

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overrule that one. Could you remember them one way or another? 

A. Could you cepe at the ques~ion? 

MR. NURIK: ArgL:menta-:.ive, your Honor. 

Q. When I asked you questions on direct about t~e details of 

some of these transactior.s involving t~e Red Sox tickets, 

correct 

A. Yes. 

Q. you seemed unable to provide a~y specific information. 

~R. KUR:K: Objection, leading and acgumentative. 

THE COURT: Overruled. 

Q. Do you agree witt that, that you were not very cleae about 

the nature of those transactions? 

A. I was not c~ear about large packets of tickets, now they 

24 were paid for. I told you that there were some that were paid 

15 fOe, and I would put that money in the bank. didn't 

16 Q. Some that were paid for and some that weren't? 

17 A. Ttey were -- I don't know how they weee paid for. 

',8 Q. I agree, that's what you said, and I'm just aski~g you 

because on redirect you seerrced to respond to Mr. Nt:.rik 1 s 

20 questions--

21 MR. NURIK: Objection. 

22 THE COURT: Excuse ~e. You mean or. oross? 

23 MR. WYSHAK: I'~ soery. 

24 Q. on cross-examination you seemed to respond to 

25 Mr. NurikTs questio~s that you were very cor.cerned that all ~he 

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expenses coming out of the 0933 account were accurately 

reflected, and it was your concern that you knew exactly what 

was going on. So which is it? 

A. I knew what the deposits and the payments were. 

Q. I"lell, if you send tickets to somebody --

A. Yes. 

Q. -- and you didn't get paid for it, ~ight 

A. Yes. 

Q. -- you IT:1.:st have had Cl .... some poLlt a question, "Where's 

10 the money?" 

11 A. They had prior arrangements to pay my brother for his 

tickets. 

13 Q. Okay. The same thing with the paying for the expenses of 

14 the times':lare, right? You were sent a bill. Sometimes you 

15 didn't have to pay the bill, right? 

16 A. No. paid the bill when I was sen~ the bill. There 

might have been a time --

Q. Is it your testimony that every time --

TEE COURT: No, no, donrt interrupt. There may have 

20 been a time. 

21 A. There may ':lave been a time when there was an extra bill 

22 for an extra oharge, but it was not a -- I'm not -- I'm saying 

23 that the bookkeeping might have been lax on their end, b;]t I 

24 paid what oame for his particular six-week uni~. 

25 Q. Do you recall that sometimes you didn'~ get billed or 

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sometimes you didn't have to pay because Mr. Perry owed yo~r 

brother money? 

A. : do not recall that. 

Q. You don't recall that. 

A. ! did not know he was owing my brother money. 

Q. So it's your testimony, if we look in this 0933 account, 

by the way 

A. Yes. 

Q. -- and we compare them with Mr. Perry's billings to you, 

lO there will be a check there for every single bill that 

Mr. Perry sent to yo~? 

l2 A. 7hat he sent to me, yes. 

13 Q. Okay. ~ow, you also ~estified that your brother Bob told 

14 you that SOS was licensed and legal. UO you recall Mr. Nurik 

15 asking you about that? 

16 A. don't recall him asking, but I -- I do recall the 

question. 

18 Q. Well, I asked you or. my direct exa~ination if you ever had 

_9 a conversatior. with your brother about the legality of 50S. 

20 A. :n Antigt:a. 

21 Q. Yes. 

22 A. Yes. 

23 Q. Well, you ::old ne "no" before. Now it 1 s tryes,fI you did 

24 have a conversa~ion with hiffi about the legality --

25 A. Oh, no, I'm sorry, I misunderstood your question. 

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didn't have a conversation with my brother. 

Q. I thought you told Mr. Nurik on cross that you had a 

conversation with him about SOS, and be told you it was 

licensed and legal. 

A. I don't recall that question. I'm sorry. 

Q. All right. And, again, you paid your brother's taxes out 

0: this 0933 account? 

A. Yes. 

Q. And they were substantial, correct? 

A. Correct. 

Q. But you have no idea regarding the true amount of his 

income, correct? 

A. Correct. 

Q. As a matter of fact, what you were reporting to 

15 Mr. Flowers as ~is income was based upon all the money 

16 deposited into the various accounts that you managed for him? 

A. Correct. 

18 Q. That yO"J described as commission? 

19 A. Corre:::t. 

20 Q. So it didn't account for any money that he may have kept 

in Antigua, correct? 

22 A. I never saw the tax that was filed. 

23 Q. Okay. Well, I think you said on direct, part of what you 

24 were willfully blind about was the amount of money he was 

25 earning, correct? 

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A. What I observed, yes. 

Q. So the taxes that he paid, you do~'t know if those were 

accurate or not, correct? 

A. I took it from the acco~ntant as to what he owed. 

Q. And, as a matter of fact, some of that money that was 

being paid over the years was being paid because when he pled 

guilty, he owed a lot of money in ihteres~ and pe~alties, about 

$300,000 over and above the tax liability. Were you aware of 

that? 

A. was aware he owed past taxes. 

~R. WYSHAK: Nothing further, your Honor. 

RECROSS-EXAMINATION BY MR. NURIK: 

Q. With respect to the taxes, you actually reported to 

14 Mr. ?lowers how Duch money was rece~ved in that accou~t ~hat 

13 you've been talking about, correct? 

16 A. Correc':. 

17 Q. You have no idea what additional in:or~a~ion Mr. Flowers 

18 got regarciing other ear~ings in determir.ing what the tax amount 

:9 should be, correct? 

20 A. Correct. 

21 Q. And in fact what happened iSI Mr. Flowers would then tell 

22 you how much you need to payout of the account for the caxes, 

23 correct? 

24 A. Correc-:. 

25 Q. And we do know that it's well over $3 millio~ that you 

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Page 144 

paid over that period of time? 

A. Correct. 

Q. And you told Mr. Wyshak that there may have been 

approximately $300,000 owed from earlier years? 

A. = don't remember the figure, but I knew there were past 

taxes and penalties. 

Q. But it wasn't the bulk of what you paid. It was just a 

s~all amount, correct? 

A. Well, Mr. Flowers, again, would give me an amount with a 

10 payment stub to pay it off. It wasn't paid off all at once. 

11 Q. Right. Kow, with respect to the order that you saw, 

12 Mr. Wyshak asked you questions about whether or not your 

13 brother R~bert lied to you. You have ~o idea, do you, what the 

United States A~torney's office knew at the time about Sports 

:5 Off Shore and i~s activities, co=rect? 

16 A. Correct. 

17 Q. You have no idea what they knew abou~ Sports Off Shore's 

activities here in the United States at ~he time, correc~? 

19 A. Correc:.. 

20 Q. But you do see, you were aware that it was represented to 

you that the United States Attorney's office had no objection 

22 ~o yo~r brother 1 s travel? 

23 A. Correct. 

24 Q. And wo~king at Sports off Shore, correct? 

25 A. Correc::. 

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11 

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Page 145 

Q. :he actual company's name is mentioned, correct? 

A. Correct. 

Q. Okay. You didn't ask your brother at the time abo~t the 

details concerning bow payments were being made by the betters, 

did you? 

A. No. 

Q. So when Mr. Wyshak asked you whether or not your brother 

lied to you about the activities in the United States, it was 

never even brought up? 

A. Correct. 

Q. So in fact what you did know is that it was a sports book 

12 operating in An~igua, correct? 

13 A. Correct. 

14 Q. Okay. Now, just so we are clear here, did you know at the 

15 time that i:. was licensed? 

16 A. Yes. 

Q. Okay. And how did you know that? 

18 A. My brother told me it was licensed and legal. 

19 Q. Okay. All right, so that we're clear, he did in fact tell 

20 you that? 

A. :':h-hl:h. 

22 Q. Okay. 

23 MR. NURIK: May I have the photographs. One moment, 

24 your Honor. 

25 I have nothing further. Thank you. 

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Page 146 : 

MR. HORSTMA~N: Very briefly. 

RECROSS-EXAMINATION BY MR. HORSIMANN: 

Q. Mrs. Tierney, one of your nieces lives down ir. Antigua, 

correct? 

A. Yes. 

Q. Which is one of Bob's children? 

A. Yes. 

Q. And she's been down there for fifteen years, right? 

A. Pretty much. 

MR. HORST~~NN: No further questions. 

MR. NURIK: YOClr Honor, I did have one thing. 

12 apologize, I forgot. 

13 FURTHER RECROSS-EX~~:NATION BY MR. NURIK: 

14 Q. Bob's wife at the time was in rehab in Antigua when he was 

15 in A:1tigua, correct? 

16 A. She was in Antigua rehab, Florida rehab, then back in 

17 Antigua rehab. 

18 Q. In fact, Bob had moved his family? 

A. Yes. 

20 MR. NURIK: Thank you. 

21 THE COURT: Thar.k you. Good-bye. 

22 THE WITNESS: I'm done? 

23 :::HE COURT: You're aone. 

24 :::HE WITNESS: Thank you. 

25 (Witness excused. ) 

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Page 147 

MR. FISHER: The government calls John Olsen. 

THE COURT: I'm going to stand and stretch, so you 

might as well toe. 

How long do you t~ir.k you have on direct? 

MR. FISHER: Direct, I may not be done by lunch on 

direct. I'm hoping to, bUe I may not be. 

THE COURT: I'd like to finish the direct by lunch. 

Then we'll take lunch a~d cross afterwards, if we can. 

JOHN OLSE); 

havi~g been first duly sworn, was examined and testified as 

:1 follows: 

12 IHE CLERK: Could you please state and spell your name 

13 for the record. 

14 :HE WIT~ESS: John Olsen, O-l-s-e-n. 

15 MR. FISHER: May proceed, your Honor? 

DIRECT EXAMINATION BY M~. FISHER: 

Q. Good afternoon, Mr. Olsen. How old are you? 

18 A. Fifty-one. 

19 Q. And where do you currently reside? 

20 A. Boca Raton, Florida. 

21 Q. What do you do for a living? 

22 A. I'm a fitness trai~er and consultant. 

23 Q. And how long have you been doing that? 

24 A. :989, '90. 

25 Q. And where are you origir.ally from? 

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EXHIBIT 3 
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M E M 0 RAN DUM 

To: 

From: 

Re: 

Date: 

U.S. District Court Judge Joseph L. Taury--

Pamela J. Lombardini, U.S.P.O. ;I \;jV 

US v Robert H. Eremian (98-10223-01) 

November 19,2002 

On October 8, 2002, Robert H. Eremian, appeared before Your Honor for semencing. At that time he was 

sentenced, for Tax Evasion, as follows: 2 years probation, restitution of $58,422 paid in full the date of 

sentencing to the IRS, and a $ I 00 special assessment after pleading guilty to Tax Evasion. That same date 

he paid his total restitution of$58,422 to the U.S. District Court Clerks Office. 

Mr. Eremi.n has requested that he be allowed to return to his work in Antigua, which is located in the 

Canobean. There, he is employed as a software consultant for "SOS" (Sport OffShore). On June 20, 2002, 

after pleading guilty to the counts involved in this indictment, Your Honor granted him permiSSion to travel 

outside of the country for work pUI]Joses, but ordered him to return prior to sentencing. 

On July 16, 2uv~, trom Lt. Col. Clyde Walker, Chief Immigration Officer for the Government of Antigua 

and Bermuda, it is stated that they have "no objections to Mr. Robert Eremian, citizen of the United States, 

formally a residence of Crosbies Point, Antigua, to return to Antigua and Bermuda." 

The U.S. Probation Office contacted Assistant U.S. Attorney Jeffrey Auerhahn regarding subject's request 

to travel and he reported that the U.S. Attorney's Office is aware of Mr. Eremian's employment at Sport Off 

Shore and has no objection to his traveling to Antigua for work pUI]Joses. 

In addition to his request to travel outside of the United States, he has requested that U.S. Probation allow 

him to travel during the first sixty days of his supervision. The U.S. Probation Policy is that no travel will 

be granted during the first sixty days unless it is considered to an emergency or extenuating circumstances. 

U.S. Probation will review this request if the Court allows Mr. Eremian to travel to Antigua .. Mr. Eremian 

is proposing that he spend every other month in Antigua. While in the United States he will reside with his 

mother in Beverly, MA. Mr. Erelnian reportedly spends time with his children, who reside in Lynnfield, 

MA with his wife. Mr. Eremian is currently separated from his wife. 

Reyiewed and Approved, 

[:l~e .Y~f/(1i.O( Effie S. Stewart 

Supervising U.S. Probation Officer 

Denied 

Agree __ 

~ 

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EXHIBIT 4 

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3 

5 

6 

7 

8 

9 

10 

Case 1:10-cr-10315-WGY Document 9 Filed 01/18/11 Page 1 of 29 

UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF MASS!\CHUSETTS 

* * * * * * * * * * * * * * * * * 

UNITED S~'ATES OF AMERICA * 

* 

?ATRTCE TIE?NEY 

* * * * * * * * * * * * * * * * * 

Criminal No. 

lO-10315-\"iGY 

DISPOSITION 

BEFORE: The Honorable Wil iam G. Young, 

Ie 0istrict Judge 

12 

13 

14 APPEARANCES: 

15 FRED M. WYSHAK, JR. and ROBERT A. nSHER, 

Assistant United States Attorneys, 1 Courthouse 

16 Way, Suite 9200, Boston, Massachusetts 02210, on 

behalf of the Government 

17 

18 

19 

21 

2 

24 

25 

COOLEY LLP (By Donald K. Stern, Esq.), 

500 Boylston Street, Boston, Massachusetts 

02116-3~36, on behalf of the Defendant 

1 Courthouse Way 

Boston, Massachusetts 

January 13, 2011 
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Case 1:10-cr-10315-WGY Document 9 Filed 01/18/11 Page 2 of 29 2 

THE CLERK: All rise. Court is in session, please 

2 be seated. 

3 Calling Criminal Action 10-10315, the United States 

v. Patrice Tierney. 

5 THE COURT: Good afternoon. Would counsel identify 

6 themselves. 

MR. WYSHAK: Good afternoon, your Honor. Fred 

Wyshak and Rob Fisher for the United States. 

9 MR. STERN: Good afternoon, your HoClOI'. Donald K. 

10 Stern for the defendant, Patrice Tierney. 

11 

13 

14 

THE COURT: Who is present in the courtroom, and if 

I could address her directly. 

MR. STERN: Yes, your Honor. 

THE COURT: Ms. Tierney, have you read the 

15 presentence report that's been prepa:~d in your case? 

16 

17 

18 Stern? 

19 

20 

2} 

THE DEFENDANT: Yes, sir, T have. 

THE COURT: Have you talked it allover with Mr. 

THE DEFENDANT: Yes, I have. 

THE COURT: Do you think you understand it? 

THE DEFENDANT: Yes, I do. 

THE COURT: Please be seated. 

23 Nothing's been withheld frcm the presentence report 

24 under the ~ules o~ Criminal Procedure? 

25 THE PROBATION OFFICER: No, your Ho~or. 
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Case 1:10-cr-l0315-WGY Document 9 Filed 01/18/11 Page 3 of 29 3 

THE COURT: Now, this is a sentencing under 18 

2 

3 

United States Code, Section 3553(a). In this session of the 

Court sentencing proceeds in four steps. The first step is 

to calculate the highest constitutionally permissible 

5 sentence. And I calculate that in our quasi-determinant 

G sentencing system based upon the advisory se~tencing 

7 guidelines without regard to any mitigating factors at all 

8 and I go to the highest sentence prescribed under ttose 

9 sentencing Qui de lines, and in the view of this Court that is 

10 the highest sentence that under the constitution this Court 

1l could impose. 

12 Second, set forth all the average sentences I 

13 

14 

15 

have from whatever Dource. And I haste~ to say, don't in 

any way sentence from any average. Every sentence must be 

individual to the specific crime and specific offender. But 

I look at those averages to tell me what weight to give to 

17 ~he advisory sentencing guidelines. 

18 Third, I calculate the advisory sentencing 

19 guidelines accurately as I Brn rcquj.red to do undc the law, 

20 and in that regard I take into account any mitigating 

71 factors. 

22 Now, these first three steps are somewhat 

23 arithmetic. And counsel, I ask you, would you please 

24 interrupt me if you think any of the calculations I'm maki~g 

25 are in any way in er=or, and I'll address it and I'll try to 
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correc~ it. Once that's set and we know what the advisory 

2 sentencing guidelines are, we come to the mos~ important 

3 step and that is to fashion a fair and a just sentence in 

this particular oase. And to do that I'll hear first from 

5 the government and second from defense counsel, and third, 

6 if Ms. Tierney wishes to be heard, she doesn't have to, but 

7 if she wi sloes to be heard, I'll hear from her, and then 

8 impose sentence. 

All right, step ono. Now, in this case the 

Ie adjusted offense level without aey mitigating factors is 

11 six. The criminal lois tory category is I. And so, the 

12 highest offense level -- the highest sentence permitted 

13 under the constitution is six mo~t~s in custody. 

14 Looking at 

15 

16 

17 

MR. WYSHAK: Your Honor? 

THE COURT: Yes. 

MR. WYSHAK: You asked to interrupt if we 

18 disagree? 

19 

20 

THE COURT; I have asked yeu to do LhaL, yes. 

MR. WYSHAK: And although ~ think it doesn't matter 

in this case, and I understand what the Court's theory is on 

22 this matter r it is the government's position that the 

3 highest sentence that could be applied in this case is three 

24 years' :ncarceration. 

25 THE COURT: ~Je~l, that --
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MR. WYSHAK: Pursuant to the statute. 

2 THE COURT: theoretically may be correct if you 

3 make mention of the actual statute. But as I have explained 

at length in United States v. Kandirakis, if you're going to 

5 give real effec~ to constitutional Booker, based on these 

6 facts and the advisocy sentencing guidelines, it would 

7 simply be unprincipled, as I see it, and Justice A~i~o has 

8 spoken to this in a more recent sentencing case, to go 

9 higher than six months. And you're r:"ghtf I know the 

government's position. But it doesn't make any difference. 

11 There's no way I'~ going higher than six months. Six months 

is what we're talking about. That's what we talked about 

13 when she pleaded; that's what we're tulkir.q about now. 

14 

15 

16 

MR. WYSHAK: Correct. 

THE COURT: The government may make mention of the 

statutory maxi~um, but it doesn't apply to her. She didn't 

17 admit to facts that would warrant constitutionally a six 

18 

19 

mOGth sen:.enC8. But I hear you. 

MR. WYSHAK: Okay. 

THE COURT: All right. The average sentence for 

these offenses, if you look at the publicly available 

22 database maintained by the United States Sentencing 

3 Co::nmission, is 22 months. That has the problem of grouping 

all tax offenses toget~er, but that gives you a lot of 

25 sentences and the average is 22 months. 
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Case 1:10-cr-l0315-WGY Document 9 Filed 01118111 Page 6 of 29 6 

If you look at the First C~~cuit average it's 13 

2 months. If you look at the confidential database main~ained 

3 by the Department of Probation, which is the District of 

Massachusetts, but again it has all tax offenses, the 

5 average is 54 months. 

6 There is a publicly available database maintained 

by Mr~ Womack, the court reporter in this session, and it 

8 has all the sentences imposed by this Court. It has the 

9 great advantage of not grouping bul lookicg at the specific 

of:ens8, which iS I here, aiding and aoetting, but not only 

11 is there not an average, post-Booker I have not had occasion 

12 ~c impose any sentence, so there's nothing there. 

13 

14 

15 that? 

16 

l7 

Now 

MR. STERN: Your Honor, may I add something to 

THE COURT: You may. 

MR. STERN: I've taken a look, and I don't portend 

18 that this is exhaustive, but just having in mind what your 

19 HOLor just. sai(3, what 1 llllnk 1s the 2009 u.s~ Sentencing 

20 statistics 

21 

2 

23 

24 

THE COURT: I have lhem. 

MR. STERN: -- posted on their website. 

THE COURT: Yes. 

MR. STERN: And if you look at 7206(2) alone, which 

25 is the o=fense that Mrs. Tierney has pled guilty to, there 
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Case 1:10-cr-10315-WGY Document 9 Filed 01/18/11 Page 7 of 29 

are none in sentencing zo~e A, which is what she is in. All 

2 of the offenses that are in this report ir. -- now, these are 

3 national statistics. 

THE COURT: No, I understand they are. 

MR. STERN: So, all of the ones -- and I mention 

6 this because the national statistics that your Honor 

referred to is a little, by necessity, because it lumps 

together a lot of things 

9 THE COURT: Actually your point is very well eaken, 

10 Mr. Stern. Have you got the screenshot of that page? 

MR. STERN: I do. And I happen to have do, 

12 although I have some scribblings on it, but I'm happy cO 

13 hand it up. 

14 THE COURT: I would be pleased to see it because 

15 I'm looking for the most discrete data. 

MR. STERN: I think that's accurate. And along 

17 those lines, and then I ask myself the question, well, are 

18 there any, againl t~is is national, are there any in 06 in 

19 zor:e A a all 1n 2009. And the answer is Lhere are, there 

21 

are, without regard to which subsection it is, 

others, if you just said 7"06, there were eight. 

2 and the 

ot those I 

2 six were probation, one of the eight was one day, and then 

23 one of the eight, the sentence imposed was a year, but that 

24 apparently was, the defendant was also either convicted or 

25 pled guilty of an immigration offense. So it was not a 
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Case 1:10-cr-10315-WGY Document 9 Filed 01/18/11 Page 8 of 29 8 

standalone 7206. And I couldn't find any, any whatsoever 

along the lines of what your Honor is saying in this Court. 

3 Your Honor is not alone. Apparently there were ~one in, 

that I could find, in 2809 under 7206(2), which is the 

5 offense the defendant pled guilty, I couldn't find any 

6 

7 

sentences imposed 

THE COURT: 

zone A around the country. 

That's very helpful, Mr. Stern. 

8 MR. STERN: I'm happy to, again, with my 

9 scribbl~rlgs on it, I'm happy to give your Honor the documerlt 

10 I just referred to. 

THE COURT: I'm happy to receive it. And since 

12 we're simply talking about averages and not this offender, 

13 accept ~t and I thank you. 

14 All right. Now let's turn to the sentencing 

15 guidelines and what they require in th~s case. The base 

16 offense level is six. dc deduct by two levels because Ms. 

}7 Tierney has spared the government the burderl and expense of 

18 

19 

a trial. That takes us to an adjusted level four. The 

criminal history is I. That gives us a guideline range o[ 

20 zero to six months, a period of supervised release of one 

21 year, if probation W('lS decreed, a period of proba of not 

less than one nor more than three years t a fine of between 

23 250 and $5,000, and there cust be a mandatory special 

24 assessment of $10e pe= count, or $400. 

25 Mr. Wyshak, are the guidelines accurately 
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Case 1:10-cr-1031S-WGY Document 9 Filed 01/18/11 Page 9 of 29 9 

calculated? 

MR. WYSHAK: Yes, sir. 

3 THE COURT: Mr. Stern? 

MR. STERN: Yes, your Honor. 

5 THE COURT: All right. Now let's turn to this 

6 particular offense, and Mr. Wyshak, I'll hear you. 

7 A~d to guide you, I'll start off by saying that the 

manner in which the government has proceeded here given the 

9 specifIc facts of this case all make sense and commends 

10 itself to the Court. The ra~ge of the offense to which she 

11 has pleaded guilty, that makes sense to this Court. 

12 What I find problematic, and I'll be asking Mr. 

13 Stern about that, is that usually in tax offenses the 

14 government wants some jail time as a deterrence, as a 

5 general deterrence, because our tax 3yste~ is largely 

16 voluntary .. But in this case you're not seeking any jail 

17 eime. 

18 So I think that's the explanation that I'm 

19 searching [or. l'lhy is Lila t so in lhl" case? 

28 MR. WYSHAK: Well, I think there are several 

reasons, your Hono~. It is obviously the defendant's first 

offense. lind she is, I be~ieve in her late 50' s. She has 

23 no prior criminal record. 

24 THE COURT: That, of course, is true of most tax 

25 of:enders. 
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MR. WYSHAK: Okay. :his case --

THE COURT: Not, not her specific age. But most 

3 are first offense, ~o prior convictions. 

MR. WYSHAK: Right. This case also presents 

5 certain evidentiary problems for the gcvernment, 

6 particularly because the business which is the swbject of --

THE COURT: I interrupt only to say I am satisfied, 

fully satisfied wit~ the propriety of the government's 

9 position here. I recognize tha . She's pleaded guilty to 

10 only aiding and abetting and only on the theory of willful 

11 blindness. But she has pleaded guilty to that. My question 

12 is just a simple one. Usually tax offenders get some jail 

13 

14 

15 

16 

time. You're not recommending that. 

MR. WYSHAK: No, YO'Jr Honor. 

THE COURT: Why? What's unique abou this case? 

MR. WYSHAK: Well, I think that it's the 

17 gcvernment's position lhat this p2rti~ular defendant in this 

18 particular case and looking at the 3553 factors that, 

19 believe that because of lhe position of this particular 

20 defendant being the wife of a congress~an tha~ --

21 

22 

THE COURT: Well, whal difference dces that make? 

MR. WYSHAK: Well, I think if you're talkircg about 

23 general deterrence, for example, that this case does have 

24 that impact of providing general deterrence despite the fact 

that there is no, or at least the government is not 
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recom~ending a sentence of ail ust because of her, you 

2 know, although she is not herself a public figure, she is 

3 certainly linked to a prominent public figure and that 

obviously there has been some media generated that the 

5 government believes will satisfy that particular factor of 

6 general deterrence. 

8 

9 

THE COURT: Let me, let me say it back to you, 

because Ifm not sure understand it. 

You're saying that because sheTs married to a 

congressman, who is not implicated in this i~ any way, shape 

Il or form, but simply because cf that marriage, not 

12 surprisingly this generates some media interest, and because 

13 of that you're saying sort of the shame and the general 

14 public awareness that this individual has pleaded guil=y and 

15 owned up Lo a c me that wa~rants probation where someone 

16 not in the news at all would get some jail time? That can't 

17 be the argument. 

18 MR. WYSHAK: Well, I'm talking about general 

19 deterrcnce, your Honor. 

20 

2J 

THE COURT: Yes, general deterrence. 

MR. WYSHAK: And I think that in this particular 

22 case, yes, that, that is general deterrence. 

23 If you're talking about specific deterrence 

24 regarding this particular individual, again, it's the 

25 government's position that based upon the fac=s as the 
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3 

Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 12 of 291) 

gevernment understands them this defendant will not violate 

again. 

THE COURT: Well, I have to say it seerr,s very 

likely to me that that's absolutely the case. But thae: is, 

5 of course, frequently the case with tax evaders. And she's 

net a tax evader. This is only willful blindness, aiding 

7 and abetting. 

8 

9 

MR. WYSHAK: And the government is 

THE COURT: But that's uSJally the case. The whole 

10 trauma of having criminal charges brought and having to be 

11 involved in the criminal process, people who are guilty of 

12 tax crimes are frequently otherwise believed to be 

13 upstanding members of the community and the like, and yet 

14 the government seeks some jail time, usually. 

15 MR. WYSHAK: Tha is lila case, your Honor. 

16 

17 

THE COURT: It is. 

MR. WYSHAK: And again, more ten than nct in tax 

18 cases what is behind the government's recommendations and 

19 drives those recommendations and supporLs a basis for the 

20 Court to sentence a defendant to a period of incarceration 

21 is the amount of loss 1n these nd of cases. 

2 In this case, again, as started to explain to the 

23 Court, because this business is an overseas bus~ness and 

24 happens to be in Antigua where, quite frankly, the Vniced 

25 States has been in some complicated litigation with the 
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Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 13 of 2913 

World Trade Organization witj Antigua, Antigua will not 

2 cooperate with the United States. 

3 THE COURT: But hasn't she gotten the benefit of 

that by the admissions she's made which lead conceivably, 

5 I'm not saying this is where I'm going, to a maximum 

6 sentence of six months in custody. That's the benefit. You 

7 can't prove in ~his case a specific loss. A specific loss 

8 

9 

10 

11 

would drive the sentencing guidelines. I agree with all of 

that. And again, I don't fault the government. I'm just 

saying we're talking zero to six months, I don't see what 

takes her out of and I will say, she should not in any 

12 way, not in any aspect have visited upon her a more severe 

13 

14 

15 

sanction because 5hc is mar~ied to a public official. 

the reverse is also true. She should not get any less 

sentence ~~an one who does not have that relationship. 

And 

She 

16 should get the sentence that anyone else would get. And 

17 that's why ask these questions. 

18 All right, anything else that the gcvernment wants 

19 t.0 Guy? 

20 MR. WYSHAK: Yes. I mean, I would like to note 

21 that we re recommending 90 days of house arrest jn this 

22 case. We do believe that some punishment is due beyond a 

23 sentence of probation which the plea agreemen~ 8al1s for. 

24 The government's recommending a sentence of two years' 

25 probation, a~d 0= course we're also recommending a $2,500 
205 


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Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 14 of 2914 

fine. And we urge the Court to provide some punishment 

beyond a sentence of straight probation, and I would just 

3 like to set forth the reasons for that and briefly, and 

mean briefly, sort of discuss some of the defendant's 

5 objections to the presentence report, which were sort of, i~ 

6 my view, a sentencing memo, so to speak, although in the 

form of an objection. 

8 

9 Vole f re 

THE COURT: 

a~.l in agreemen 

AI! right, 1'1 hear you briefly. But 

as to wha the sentencing guidelines 

10 provide, a~d they're advisory. 

11 MR. WYSHAK: Well, the reason we believe, the 

12 reason we believe a sentence of ho~se arrest is appropriate 

13 in this case is basically the theme, and I expect ~r. Stern 

14 to say this, the theme that she committed the of:ense out of 

15 some benevolent beliof that she was doing this to help her 

16 elderly mother and her brother's children whc he somewhat 

17 aband~ned when he went to Antigua. 

18 I would also note for the Court that in addition to 

19 doing thut, s~e also ilcted as sort of his, as his personal 

20 business secretary. A large portion of the expenses that 

2' came out 0 this checkIng account that she managed would 

22 have pa~d her brother's business expenses, his travel 

23 expenses, his credit card bi 11s, expenses related to the 

operation of this gambling business. 

25 Additionally, while I suggest to the Court it's 
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Case 1:10-cr-l0315-WGY Document 9 Filed 01118/11 Page 15 of 2915 

commendable thac she assisted her brother in helping her 

2 brother care for her mother and her children, I also note 

3 that it would be more commendable if she reached into her 

ow~ pocket to do this. She didn't do that. She was 

5 reaching into her brother's poc~et. And I suggest to =he 

6 

7 

Court tha" that's why she looked the other way. She didn't 

ask the questions she should have asked. This was easy. 

8 think we all in this life have to care for relatives, 

9 especially parents, and most of GS have to reach into our 

10 own pocket to pay for that. She didn't have to do that. 

11 Furthermore, she profited from this. She took an 

2 amount of money, whether you want to describe it as a 

13 salary, think she has described it as gifts from her 

14 brother, of approximately 20 to $30,000 a year. 

15 She also used floney in this account =0 subsidize 

16 her use of a personal autonobile, use of personal cell 

17 phones. So, we do believe that some punishment beyond a 

18 sentence of probation is appropriate in this case, and we 

19 urqe the Court :::'0 sentence, SGn Lhe defendan to 90 

20 days' home detention. 

THE COURT: Thank you. Mr. Stern. 

22 MR. STERN: Thank you, your Honor. 

23 I'm going to go over some of the ground that 

24 Mr. Wyshak went over, but again let me just start with 

25 the point your Honor made. 
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THE COURT: Well, let me ask you a questior., and I 

2 do wan= you to address that point, but I have a 

3 previous point here. 

On the day that Ms. Tierney p~eaded guilty she sat 

5 =here and she said, after _ asked her what I thought was 

thorough questions about the elements of the offense, and 

7 have very muc'! in mi.nd what it is, to wr.at she pleaded 

guilty, she pleaded guilty being willfully blind, aiding 

and abetting tax evasion, and she said I take toLal 

10 respensibility fer my actiens. And then later that same 

11 day, I don't assert this, :l just hea.rd it, it was reported 

12 that she said on that same day I was duped by my bro=her. 

13 

14 

15 

Now, did she say that? is hy first question. And 

if she did that's inconsistent with a plea of guilty. If 

one is duped they arc not guilty of this crime. So stZlrt 

16 there and 

]7 

18 

19 

20 because 

MR. 

THE 

MR. 

11m 

STERN : 

COURT: 

STERN: 

going to 

THE COURT: 

Okay. 

-- ther. 

Okay. 

forget 

Please. 

go to the other. 

Can t jus t make cne pO~f1. t, 

to say this. 

22 MR. STERN: I agree with the Court that Mrs. 

23 Tierney should get no benefit or no harm because she 

24 happened to be married to a congressman. 

25 THE COURT: That is the Court's view. 
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Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 17 of 291 7 

MR. STERN: And as your Honor has indicated it is 

2 an irrelevant fact for purposes of sentencing. 

3 THE COURT: It is. 

MR. STERN: And again, I wou~d note that, and this 

5 gets a little bit, I'm going to get to your Honor's questio'l 

6 in a moment, bu~ this gets to a little bit as to the 

uniqueness of this proceeding because there really doesn't 

8 seem to be anybody in zone A charged with the aiding and 

9 

10 

abctting portion of 06, at leasl in the last calendar year 

that we have statistics for in 2009. = didn't go back 

11 historically. Maybe, maybe it's happened. 

12 

13 gui lty. 

the answer to your question, Mrs. Tierney pled 

She pled gJilty to aiding and abetting the filing 

14 of false ~ax returns which were not her tax returns or her 

15 husband's tax returns but her brother's tax returns. And 

16 that was done because her brother falsely represented to 

17 her, and as '11 sa y i a :rr;oment to federal court and to 

18 the probation departme~t following on the heels of his 

19 earliec conviction in federal court, that he was going back 

20 to Antigua to be a consultant for an offshore Internet 

gambling operation, Sports Of!shore, and that he wasn't a 

22 

23 

24 

25 

principal, he was a consultant. She believed that. 

NOW, how do you get from that, and that is what the 

duping is, if you will. She recognizes what she's pled 

guilty to. Between the early =equest on his part, will you 
209 


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Case 1:10-cr-l0315-WGY Document 9 Filed 01118/11 Page 18 of 2918 

~ake care of the children, will you help out mo~, will you 

2 pay the bills, will you handle all the affairs, will you 

3 check on the house in Lynnfield, when the kids are in rehab 

would you make sure that they're okay, between that initial 

5 reques~ and stepping foot into federal court there were red 

6 flags. ~here were questions that could have been asked. A 

more probing inquiry by her part should have been 

8 undertaken. 

9 So, she started with believing her brother and in 

10 the face of what she would say, certainly red flags that 

11 should have prompted her to ask more questions, do a more 

12 thorough investigation, and that's how we get to the willful 

13 blindness. 

14 

15 

THE COURT: 

MR. STERN: 

But she wasn't duped. 

Not, not duped when she stood, when she 

16 pled guilty in this court. 

17 THE COURT: Because a reascnable person would have 

18 taken action. 

19 

20 

MR. STERN: But, again your Honor, you know, 

there's a chronology, there's an evolution here. She was 

21 certainly -- when her brother wenl back to Antigua, he 

22 obviously had a criminal record. He told others, not just 

23 her, that he was going back to work as a consultant l he was 

24 going to work on Internet gambling, and he was permitted, 

25 you know, to do so. There were facts cbviously that ~ame to 
210 


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3 

Case 1:10-cr-10315-WGY Document 9 Filed OJi18/11 Page 19 of 2919 

her at~en~ion, including the fact that she was paying some 

bills and whatnot, which on their face didn't seem 

inappropriate. She was not duped. She should have she 

was willfully blind at a certain point l and that's how we 

5 ended up in this Cou;::t, in a very unusual situation. 

6 She accepts responsibility. But l again, I'm not 

crying to argue against t~e acceptance of responsibility, 

8 your Honor. The reason w~y this case is different and why 

9 would say emphatically not only is no prison time called for 

10 here, but I'm going to, w~en I get to the end urge that your 

11 Honor impose a straight probationary sentence. The 

12 government's reco~mendation is probation with seme period of 

13 home confinement. 

14 Because many of these cases, and this Day be 

15 getting to what your Honor wa thinking of 1n ter~s of thc 

16 tax offense, you know, she's not cha~ged with money 

17 

18 

19 

28 

lauoder":"ng. She's not charqed with being pa of the 

business. Some of these cases involve somebody who is, if 

you will, an i ve pa rt the business. It. migh t be a 

gambling operation. It might be a drug opera~io~. She's 

not charged with being part 0 it. She's not charged 

22 with --

23 THE COURT: Were any of those I have that i 

24 mind. Were any of those things the case this would not be a 

25 guideline zero to six months case. 
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Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 20 of 292 0 

MR. STERN: No. I understand. Nor as a factual 

2 matter did she hide her activities. I think as the 

3 presentence report indicates this was a bank account in her 

brother's name. And if you will, and I'm not defending, 

5 believe me, her brother in his activities, of which I don't 

6 have personal knowledge as to what he was really doing in 

7 Antigua. But the point is that often these cases involve 

8 some level of, sort of hiding the ball, i= you will, the 

9 bank account. Her brother was all the account. She had 

10 check writing authority and wrote checks over the course of 

11 some eight years. But there was nothing that was being 

12 hidden in terms of whose account it was. And most of the 

13 THE COURT: She provided the infocmation to the tax 

14 preparer. 

15 MR. STERN: Exactly. F.xactly. And the key 

16 problem, and the reason we're here, is that when she 

17 provided ~hat in ~mation to the tax accountant, she, as 

18 part of the QUiok Book kind of computer-based breakdown, she 

19 described tho money coming into the account as commissions 

20 and was willfully blind to the faot that these apparently 

according to the government's evlden~e, which says that it 

22 intends to prove in the other case, these were not 

23 commissions! he was a principal, and these were the proceeds 

24 of illegal gambling. 

25 But I think it's impo~tantf yo~r Honor, 
212 


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Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 21 of 2921 

Mrs. ~ierney provided the raw in~orffiation to the tax 

2 preparer. She neither prepared the tax return. She didn't 

3 see the tax return before it was submitted. There's no 

allegation here in this case that there was a tax loss as a 

5 result of that. In fact, many, you know, the lion's share 

6 of the checks that she wrote were to pay her brother's 

7 

8 

9 

estima=ed taxes to Uncle Sam, to the IRS. So there was a 

substantial amount of money. I'm not, I'm not saying that, 

I'm not tryi;)g ~o minimize t~c conduct. just think it's 

10 important for purposes of your Honor, since you do have a 

11 range of zero to six, with a lot of bells and whistles and 

12 possibilities in between there, I would urge the fact that 

13 t.his was a, if you will, a transparent activi ty makes some 

14 difference. 

15 

16 

17 

thinkl your Ho;)or, the overriding motivation, i 

can call it that, was to care for her nieces and nephews. 

know your Honor is aware rom the presente~ce report that 

18 each of them, their father moved to Antigua, left then, left 

19 the three of thex up here In Massachusetts really in the 

20 care of a nanny. The estranged :nother, their mother, Mr. 

21 Eremian's estranged wife, ~ives in Florida with very 

22 serious, historically, drug and alcohol problems. She's 

"3 been in and out of rehab. There was nobody who was caring 

24 for them. 

25 So, she was, if you wi1l, the surrogate mother .. 
213 


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3 

5 

6 

7 

Case 1:10-cr-10315-WGY Document 9 Filed 01/18/11 Page 22 of 29? 2 

You know, checking on them, buying them their clothes, 

paying the credit card bills, taking care of the house in 

Lynnfield. In the course of that she was also taking care 

of her ailing elderly mother who now think is 86 years 

old. It is true that her brother gave some, gave her some 

gifts, including paying, 

WV Beetle car auto lease. 

think it was $250 a month for her 

That's the auto lease. Not a 

8 Cadillac or a Mercedes, it's a VW Beetle. And did pay, i: 

9 you will, for the cell phone which was part o[ a family plan 

10 

11 

that she had with the nieces and nephews. 

~hese were gifts from ~er b~other. Her brother was by and 

12 large paying the bills for the, for the nieces and nephews, 

13 and this was part of his, part of the gifts that he was 

14 giving not only to Mrs. Tierney but to his mother. 

15 So, YOll know, where does that leave un? You know, 

16 I know your Honor wants and will tailor a sentence tha~ 

17 

18 

19 

deals not only with the underlying conducl but th the 

contex::. I don't think that any kind of, quote, deterrence 

message here for these unique 1 rcurnslar:cc:.s culls out for 

20 any sentence other than probation. 

21 She's very sorry that she's in this situation. 

22 She's very sorry for what's happened here. She's very sorry 

23 for what she's done. It is a deep embarrassment to her. 

24 She's never been in trouble before. And frankly, your 

25 Honor, whe~ you look at some of the family history, it's 
214 


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Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 23 of 292 3 

remarkable the life that she's lived, would humbly submit. 

2 I ~ean, she's had, you know, a father and bro~hers -- ~wo of 

3 her brothers are under indictment in this courthouse. And 

one brother died of a suicide. It is rema~kable that she 

5 has lived the law abiding, and certainly until this day, 

6 until she pled guilty, life that she's had. She is a deeply 

caring person who kind of leads with her hear~ and sometimes 

8 that is he.r downfall, leads with her heart. 

9 I've been impressed by, if you will, not the big 

18 things that Mrs. Tierney has done, not because she's the 

11 wife of a congressman, not because, you know, she knows some 

12 important people. That's i~relevant. It's some of ehe 

13 sm"ll things, your Honor, that Nrs. Tierney has done. You 

14 know, visiting the friend in the hospital, the bringing of 

15 :he meals, the volunteeri~g and t.he charitable even!.s. 

16 Again, not because she's doing it because, as a wife of a 

17 ccngressman, but she cares deeply about some of the things 

18 that she cares about in her community. 

19 So, I would urgc the Court to impose straight 

o probation ~ere. I think the facts of this case are very 

21 unIque. T!18 prosecution in this case, I'm not saying this 

2 critically of the government, but the particular 

23 circu~stances here, it makes sense why the government 

24 arrived at its recoffimenaation in these particular facts for 

25 this particular, this particular defendant. 
215 


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Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 24 of 292 4 

think if your Honor is at all inclined to !mpose 

2 any period of home confinenent, ~or example, would urge 

3 that i~ be tailored so that she could continue to care for 

her mo:.her, 86~ She's on the Lifeline. She makes meals for 

5 her. She puts her in the car and takes her out shopping. 

6 She visits her. If there was some way, if your Honor is 

7 inclined, I'm hoping your Ho~or will just impose perhaps a 

8 one year or two year straight probationary period, but if 

9 YOLr Honor is at all inclIned Lo include In that any period 

18 of home confinement, I would ask that it be more really in 

1: the nature of a curfew, that she be permitted during sort of 

12 regular hours to be visiting her mother and to go abou:. her 

13 business. A~d then in addition, if there was an e~ergency, 

14 at any time of :che day or night, that she could be permitted 

15 ~o respond at lc~st to her mother w~thout having to [y 

16 :.he probation department in advance. 

17 I k~ow your Honor works hard and sllccessfully to, 

again to tailor sentences which take account of the 

19 guidelines, but at the end of the day t'o Mrs. 7i~rneYf 

20 Patrice Tierney, who's lived a good life t who is a good 

21 person, and has made this mistake and for that she is 

22 forever embarrassed and sorry. Bu t would urge your Honor 

23 to impose one year ot probation. 

THE COURT: Thank you. 

25 Ms. Tierney, you have the right to talk direc~ly to 
216 


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Case 1:10-cr-l0315-WGY Document 9 Filed OJJ18/11 Page 25 of 292 5 

me. You're not req~ired to, but if you want to, wi::"l hear 

2 you now. 

3 THE DEFENDANT: No, thank you, your Honor. 

THE COURT: Very well. 

5 Ms. Patrice Tierney, in consideration of the 

6 offenses of which you stand convicted, the principles of 18 

7 United States :ode, Section 3553(a), the information from 

8 the 0nited States Attorney, your attorney, and the probation 

9 office, this Court sentences you to 30 days in the custody 

Ie of the United States Attorney General, to be followed by two 

11 years of probation. The first five months of that probation 

12 

13 

will be spent in house arrest. You w~ I be permitted to 

leave to wock. You'll be permitted to leave for religious 

14 services, for medical appointments. You'll be permitted to 

15 care for your mothe a any time throughout the 24 hours. 

16 There won't be any electronic monitcring. And should your 

17 mother find some emergency you'll be permitted to respond. 

18 You may visit her and stay with her outside the home. You 

19 may take he= shopping [or necessities. You may respond to 

28 medical emergencies for others in your immediate family, 

hllsband and chi dren. Beyond that, for five months you're 

22 to be in house arrest. 

23 There will be a $~,500 fine, no restitution, and a 

24 special assessment of $400. 

25 The special conditions of your peciod of supervised 
217 


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2 

Case 1:10-cr-10315-WGY Document 9 Filed 01118/11 Page 26 of 292 6 

release 

release 

I said probation, it's technically supervised 

you're prohibited =rom possessing a firearm, 

destructive device, or other dangerous weapo~. Within six 

months of your release from the 30 days in custody, you will 

5 cooperate with the Examination and Collection Divisions of 

6 the Internal Revenue Service in all respects. You shall 

7 provide that division all financial information necessary to 

8 deter~ine the prior tax liabilities of Robert Eremian. yo~ 

will provide the Collection Division of the IRS all 

10 financial information necessary to determine Robert 

11 Eremian's ability tc pay. 

12 You're to participate in a mental health treatment 

13 program as directed by the probation office, and the costs 

14 of the services for such treatment program you wil: bear 

15 based upon your ability to pay. 

16 You are prohibited during the period of your 

17 supervised release rom disparaging the facts of your 

18 cor:.vic-:=ion. Now, I'm not ~nfringing on your right to free 

19 speech. You can say a:lY you want about the selltence, 

20 and I'm going to say that you have the right to appeal, and 

21 

22 

yeu do helve. But this you may not do and lL's a condition 

of your supervised release. You pleaded guilty to aiding 

23 and abetting the filing of false tax returns through your 

24 own wi ful blindness. Willful blindness is a high 

25 standard. It's not being duped by someone else. You are 
218 


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Case 1:10-cr-l0315-WGY Document 9 Filed 01/18/11 Page 27 of 292 7 

not to disparage the admissions you made in open court. If 

2 you do, it is a violation of your supervised release. 

3 

mistake. 

Let me explain the sentence to you. This isn't a 

You should have kncwn that the information you 

5 were providing was false and it enabled your brother to file 

6 false income tax returns. You shou:d have known that. You 

were willfully blind to it. That means you didn't care 

8 whether it was accurate or not. You didn't take those 

9 minimal steps to ~ake It accurate. People aren't qui~ty of 

10 tax crimes because they make mistake. ~hey're not guilty of 

II tax crimes because they're negligent. And our tax law is 

12 largely volu~tary. And the reason, and I do~'t fault the 

13 government, though the seCltence of this Court is somewhat 

14 different, aCld I take full responsibility for that, the 

]5 gcvernment has been both sensitive and l110rC)ugh here and you 

16 have been ably represented by skilled counsel. 

17 

18 

Having said tha f ! S no mistake. 

of these letters. Every single one of them. 

have read all 

I don't 

19 downplay moment the t::,uly humane and wonderful things 

20 you've done, out of love, not only for those who are closest 

21 to you but also for others in the community. And I am 

22 satisfied that that comes not from any position or public 

notoriety. am satisfied that comes fro~ the heart. But 

24 that said, it cannot excuse the violation of the law of this 

25 severity. It simply cannot. 
219 


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Case 1:1O-cr-10315-WGY Document 9 Filed 01118/11 Page 28 of 292 8 

But I want to make it clear, as your able counsel 

2 has argued and the government agrees. think it 

3 extraordinarily unlikely that you would ever be back here 

and reof~end in this or in some other respect. But it is 

5 the careful judgment of this Court that an offense of this 

6 sort requires some jail time. In this case it's minimal. 

But some actual jail time. Because it must be apparent in a 

largely voluntary system such as we have in the United 

9 States th~t people must obey the tax laws, and if criminally 

10 they do not t~ere must be an actual sanction. 

11 You do have the right to appeal from any findings 

12 or rulings the Court has made against you. Should you 

13 appeal Jnd should your appeal be successful in whole or in 

14 part and the case remanded you'll be resentenced before 

15 another judge. 

16 Mr. Stern, if an appea is decided on, I direct yo~ 

1"' to ask for transcript from this session because I'll turrl il 

18 around right away. 

19 Do you understand? 

20 MR. STERN: I do, your Honor. 

THE COURT: NOW, since there is a period of 

confinement you have no objection, given your 

23 recommendations, to self-reporting? 

24 MR. WYSHAK: No, your Honor. 

25 THE COURT: She'll report to the place of 
220 


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Case 1:10-cr-l0315-WGY Document 9 Filed O:JJ18/11 Page 29 of 292 9 

co~fine~ent -- ~his Is the 13th of January -- on the 28th of 

2 February. Monday, the 28th of February. 

3 That's the sentence of the Court. We'll call the 

next case. 

5 (Whereupon the matter concluded.) 

6 

7 

8 C E R T I FIe ATE 

9 

10 

11 I, Do~ald E. Womack, Official Court Reporter for 

12 the United States Dis~rict Court for the District of 

13 Massachusetts, do hereby certify that the foregoing pages 

14 are a true and accurate ~ranscription of my shorthand ~otcs 

5 taken in the aforementioned matter to the best of my skill 

16 and ability. 

17 

18 

19 

20 

21 

22 

23 

24 

25 

/S/ DONALD S. WOMACK 1-15-2C11 

DO~ALJ E. WOMACK 

Official Court Reporter 

p . O. Box 51062 

Bos~onr Massachusetts 02205-1062 

...... @megatran.co~ 
221 


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EXHIBIT 5 

13-1064 0193 
222 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 228 82732.212

BankofAmerica s>-

--~ 

Capture Date: 20051006 Sequence II: 0370247305 

ROBERT H. EREMIAN P.O. BOX315S 

BEVERLY. MA Dl915 

,"_ .. : •••• 0'133 .. 

No Electroxric Endorsements Found 

No Payee Endorsements Found 

Page 93 of 269 Prjn! R.q:120070207000490 

N~ 1358 

~--.. 

TIl. Feb 08 1 1:34:36 CST 2007 

USAO·5527 

10-10159·PBS (D.MAL0247 

13·1064_0194 
223 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 229 82732.213

BankofAmerica ""'" 

-?~ 

Capture Pate: 20051104 Sequence #: 0770129895 

ROBERT H. EREMlAN p.o. sox 31SS 

BEVERLY. MA Ot915 

.J:lL... ." 

1371 

CHECX AMOUNT 

fMf.Q;;,'..Il.:l,f-Ll-Ur.Ll!.I:d.U'AJ."'-'J~t.e4!~--J::'-!!!:.1@~~::I$ !is, ~~7i~ I I 

BANK Of AMERICA 

~~~ AtrTliWUD Slf;tW\IlI[ ~ 

_ .... 1:_.'. •••• 10'H3'· .~---.... 

Q 

g 

'I~}[ f,:tlis~as~ Ii! 

~L" ·~_;;,c No E~ectron.ic Endorsements Found 

No Payee Endorsements Found 

Page 104 of 269 Print Req.#20070207000490 Thu Feb OB 11:34:57 CST Z007 

USA0-5528 

10-10159-PBS (D.MAL0248 

13·1064_0195 
224 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 230 82732.214

Bank of America ~ 

~ 

Capture Date: 20060206 Sequence#.: 1170614360 

ROBERT H. EREMIAN P.O. BOX 3195 

BEVeRlV, MA 01915 

8ANK Of A!dERICA 

.~ 

! j~;'-11t.fh~43~$ '- ~ .-.. ~.," J , 

.'" j8 

Ig·==··~~··~·:~ • No E1ectx;onic Endorsements Found 

No Payee Endorsements Found 

Page 134 of 269 Print Req.#2oo70207000490 

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Thu Feb 08 11:36:03 CST 2007 

USAO·5531 

10·10159·PBS (D.MAL0251 

13·1064_0196 
225 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 231 82732.215

BankofAmerica """'" 

~~ 

r:apture Date: 20060711 Sequence #: 2470728626 

... ROBERT ·H. EREMIAN· 

.. ..... -.: ... 

.' P.e. sox 31.95 .. ' 

BEVERLY. MA 0\915 

' ....... :_._ •. •.... iI ....•• Dq301'~ • A..-..~' .. "<J,. .-:_.:....._"- .=-.~.-.. ---:-: .--;-.=-_-:"";:._ \:--:-_~~ '- • __ 

. : ..... : 

No E~ectromc EndorsemeJ.ts Found 

No Payee Endorsements Found 

Page 198 of 269 Print Req.#2oo70207000490 

1462. 

,,-....... 

---_ ... 

[ 

Thu Feb 08 11:38:47 CST 2007 

USAO·5534 

10-10159-PBS (D.MAL0254 

13-1064_0197 
226 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 232 82732.216

Bank of America ,.;;:,.. 

~ 

Capture Date; 20060911 Sequence#: 1470379679 

ROBERT H. EREMIAN P.O. BOX3195 

lilo Electronic Endorsements Found 

NO' Payee Endorsements Found 

Page 227 of 269 Print Req.#20070207000490 

1490 

I 

Tnu Feb 0811:39:56 CST 2007 

USAO-5535 

1()"10159-PBS (D.MAL0255 

13-1064_0198 
227 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 233 82732.217

BankofAmerica ".,... 

... 

Capture Dat.: 20051010 Sequence #: 1370613039 

.. ,' ROBERT H. EREMIAN -,,-,-

P.O, BOX3195 N~ 1499 BEVERLY, MA 01915 

~~~~~~~~~~~~~~I~J~r- ~ OOCXAMQUNT 

...i.!i,{MI...IBJ'1.L.J....(<!l!A&!&.&l!:::~rrz~?..----1t::~~E:::Js I ::JI/ ~~~~~ I 

~ 

g 

.-_ ... : __ .: 

;:: . ,. 

f;1!f~i[j~13~J39:il 

illL_ ~:!, No E~ectron1c Endorsements Found 

No Payee Endorsements Found 

Br.«~~7 •••• O'l:i:}I1· 

Page 235 of 269 Print Req.#20070207000490 Thu Feb0811:40:15 CST 2007 

USA0-6537 

10-10159-PBS (D.MAL0257 

13-1064_0199 
228 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 234 82732.218

BankofAmerica ~ 

~ 

Capture Date: 20070907 Sequence #: 1170959475 

ROBERT H. EREMlAN 

BANKOfAMERH:A 

II ••••• ,L'I: •••••• ,· 

m, 

g~ "'I 

No Eloctronic Endorsements Found 

No P~y~e Endorsement.!> 'Follnrt 

Page 260 oj 324 Print Req.1I20080201lOO3751 

S.13 -,,-,-

1649 

Tue Feb 1203:41:59 CST 2008 

USAO·5547 

10-10159-PBS (D.MAL0263 

13-1064_0200 
229 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 235 82732.219

BankofAmerica ~ 

. ~ 

Capture Date: 20071009 Sequence f;; 1170002195 

ROBERT H. EREMIAN P.O. BOX319S 

No Slectron.i.c Endorsements Found 

No Payee Endorsements Found 

Page 278 of 324 Print Req.#200B02080C1'1,751 

1666 

Tue Feb 1203:43:57 CST 2008 

USAO-S549 

10-10159-PBS (D.MAL0265 

13-1064_0201 

Insert graphic folio 236 82732.220pwalker on DSK7TPTVN1PROD with REPORTS

$20.071,29 

_0333 

__ 

Sequence NU'lIber: 

Capture Cheek NUlfherl 

49288!fl2l. 

02/2{;/200B 

1121 

ROBERT H. EREMIAN -i1:-

1'.0IHIX31" 

II:EV1IIlV, MAOltlt. 1727 

'.: 1:_OQ31I;' 

......... ..! ".. 't 

Sri ';Gi 

tNi$!l'<<<:'>:l 

71e< 

6>, 

dou,tI!u!tl,ta 

34343&524S 

equence Dank» fJOrO Ban\!: Name 

0224;3·0.4)65246 122Hl1110 't CUtBANK (SCUTH OAAO. 

022'304365246 0420{103U nrTlt THIRO SANK 

00H2859121 Bl!.NK or JIK"'..RlCA, N1\ 

I 

I 

,"cc:ounl: 

I'Un"{ 

$2'15,;:) 

_Oli)) 

--

sequence 

CllptuJ:e o.ate: Chl'tCI( HU!l'lber: 

dS-2HOO66 

02/15/2.00& 

1119 

... 

1719 

tlIllKAMOIOO' 

4<.al. -T%!?:<-. loBr O':'iJi,f"'?f' I 

•. 1: 

I ,f,;) 

tmcM.I,J,IfII,.4 

,._" .: : ....... .. 

PAY TO ltl 

OflSl}!" R1: 

i1" 1\ " II: : I "')IS 'I ! . I' Oio06l.0Sl. O( 1,1 'L· II 0900853961 r; 

... 1052 02115106 0400 0139 ,i 

Elet.:trofl.ic: 

Date Sl!quence 

OVU/ZIlOl'l 

02/1S/2COe 00'0085)961 

8a.nll: I Born 

111012622 

061l)OOC!!I2 

Bill'll!. Name 

t!ANK (It )f}l. 

BNlK -or hKtt>;lC)\, tip. 

;;) 

(J) 

<0 N 

N 0 

01 N 

0

« 1 'I:t :!: <0 ci 0 

'r' 

(/) . 

(lj q. 

$ 

6 

..-

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o 

'1J 

... III 

W en 

'" s:: "'" » '0 

I\) '0 o 0 

W 0 

CD 

J\IItCu.nt;: $"58.000.00 

ACcount, -"933 

UankH\ullbe.r:::_. 

,...-.. "-.----.,, 

P.o.BIIK).l$$ 

a&'EJ!L'I.JMolns 

Se-qu1N\ce U70U47U 

Captuu Oaea: 04/18120118 

Cheek NlIIIIbe:t: 1750 

I <¥m'r: I -til- 1700 

•• d' N." .. """""'" 

.: ': 

___ O"i3.:lA' 

AMtmt: $20,315.20 

Ba1\.kNUlllber:_ 

Sequenee IfWllbe1;: 

Capture D8Itltl 

Cheek Number: 

692633402 

175t 

""" .... , I AA 1 : -

1

" ''''''15'

r" - (.,J: 

IA.!IJ:\lt,u,l/)/CA .-_'U' I ': ___ oq:nnl 

"t! I 

(.., .• l·;f:(,: :,'1: .. I n \ 

....... .... 

- -.- - . 

:t 

. '.' 

1 ! 

• I 

!\ >l2.2:'W111a< 

I 

8t 

34347ums 

elllc-Uonie l!ndo:taemenu 

Dat= SltqtlenC:G Dank /I BQi'D Sank IiIilOIe 

Ot/24/20oe &0.2.3.30110.938 0420903lot 1I fInll THIRD BANK 04l241200il 122t1l1110 l' ClTIBMK IsOina tw«l 

04/24/2008 000692633402 1110121!2.2 1I' f3.II.NX or AHEAlCA, NA 

Insert graphic folio 238 82732.222pwalker on DSK7TPTVN1PROD with REPORTS

$58.000.-00 

___ 

ROBERTS. 

P.o.&Ol(JIt§ 

&MlIll',MAOltl5 

" 

sequtmC$ Nut\:>$r-J 

Oat.. I 

(;bllelt 

4970220118 

04lHl1200i 

USC 

.. I ': _oqBr 

E) , 

-til1750 

AIIIount: $20,ll$.iO 

J\ecount: _093) 

DankN"Wl\bul _ 

ROBERT H. EREMIAN 

Sequence Hl.IlI'bI:r: 

Dati'!: 

Check Number: 

G!l26J3402 

OH,,,/200$ 

Inl 

-til1751 

I """ .. iii • 

j • < 

"'-"11' J! ': _°9:3,311' 

.' 

!1 , if.." 

HE:E1017H)< ; 

6>, 

Electronic endorsement a 

Date Sequence aMk f SOFP Bank IJaf'llf.l 

04/U/2(}Q8 8042UUHI09:l!l OHOOO)U'" f'lFl'H tHIRD BANK 

04/241'2008 122401710 't ClTlBANK tSOOfit DMO 

04/241200& 000692633«02" 111017822 II BANK Qr 1!,M£RlCA, NA 

t 

It> 

'" It> 

::l 

r:::: .". 

N 0 

OJ N 

0, 

< .". ::1! CD 

c:i ° .... 

(J) M CO .... 0. 

d> 

It') 

"... 

° .... 0 

... 

Insert graphic folio 239 82732.223pwalker on DSK7TPTVN1PROD with REPORTS

$1,2$.000,00 

-

Sequence NUMbBr: 

Capture DatBt Cheek NWl\beJ:': 

6010431153 06/16/2008 

111' 

n..J!.tu:.l'I'UIU" 

P.o.I:OX31" 

8MN.'1. MA oms 0f-ut£¥iJ Ne 4N- 1776 

.. Hu"J,.,J 1(",.:1, 11 .. , J1ovJ"'/' /.I·P.bD"""" 

"""'''''''''' (ls1;i,::;: \·":l,J'"' \ $ I 1.?f:'X\ 00 I olIl1l5t::" 

{)._.1o.20 ,' 

,t1'{D Eio.J 

.!: ': .•. --- "":" .... ': _._.::. ... : 

l '" 

° 

t;.'''Jlol! 

,:Htl: 

...... .[1 

> 1'67, 1 ef58' s· !., 'l' 

!t,li,i. i4.lI'il • ·,-1 

CRI'fS(38:5 • RW14.! ..... 

:}o It '" i"ll . • II 

F':' " i 

. 

Acc::)Unt: 

Bank NUIIIb&rl 

$S!)G.OG 

-

ROBERT H. EREM1A!I 

".o.e.OXJlS5 

8MfttY. 1M .,111$ 

Sequence Hum))ft;' 

Date1 

Chack NwtWar. 

4592750166 

06}17/2006 

171'1 

r:FJ N'! -li'I- 1777 

5it;&1 7 . . IfJ;'A":,..-

---------- II) ,,,> .... ,,,,.,0':; 17Z00G 

1N«00AMflUg . -_._-{f 

J,---"1: ., I" 

-.: : 

r. i' . . PAYTOlHe. ..• , 

S!AlE' i. . ... :. ., ' .. 

h :r . I'. Z? 19 . . ·SOf.06.::os.dn'2lrocrnou:oiio< t"i ;z.r 

i:· Rb. ' .• "i... . v ... .. ,.;:; i '< "<:'-"';1"3;;:'''' i . 61; l 

lUec;tl'ot\1c Endorsements 

babe Sequ.ence 

06117 /2OOS 004592150166 

05/17/2008 00500253513 

Bank' 

111012.822 

0&1000052 

BOrn bank Name 

DANK or MERICA, NA 

BANK OF AMERICA, NA. 

r I 

It; g; 10 0 0 :ll 0, N 

0 0, 

« 'o:t ;ii ::2: (0 ::;) c::i 0 

.... 

(J) . M CO .... 0. 

d> 

L() 

0 

... 

6 

.... 

Insert graphic folio 240 82732.224pwalker on DSK7TPTVN1PROD with REPORTS

$125/00(;,00 

_Q931 

__ 

Sftquarn:e liUll"ber: 

<;aptur$: Date: 

C4eck 

&010"311.$) 

06/16/2008 

1116 

Kvzu:\,K.I. n. 

'.O.,Ol(31U 

8£'1'aIL'I',M4CUf15 .l../ :t.O'"L .. .. l --I'*- 1776 

, f/v"J,.,J fo1ci) TI.",J".(' IJ.Jo.ow.2lJ 

1 i6ffi£@U1\1* I yM'1<il! ! 0# ! 

U (I.) I ; !sl&f"",.()iJJ 

OUf!!!f!!!!tI _ &nt::::'" 

" dJ.,,; A..' 

••••• t; __ --

i1!l HI I 

1'6?; 191sS;/iCiJJ24E:OiJI;FfRtif3&:ZlJOS1Z',OSJ4"'1! 

"," .. ".ill . "_1 

!6270§:'!lOSl CflNSaOS • R!l614 '! 

. . 'j 

!T j 

"'I: 81" 

, 

A¢cl»lnt: 

Ban)!; H\l.fl\bul __ 

ROI)ERT H. EREMIAN 

',C,BOXjl&S 

atvEII\.Y. MA01'U 

Sequecnce Numb$[: 

Captur'l!l Dater 

en.ell 

459215.0166 

06/1112{)06 

1111 

L:L1 --I'*- 1777 

. d 00 

. "., '''& 

INtl(tllAAltAltA 

"'--'. t: I: 

.' i' 

i. 

:;1' 

I 

"i :1' 

I: PAYTOTIiE

c ORDEROP , 

STATeRRU I 

. I' 

i ' Z,' It II 

. 'l r: ':' ;:) eS1J1)253'513 

RL ,-, . 

Electronic Endorsements 

!>ate Seqvtlncl! 

06/l'1/2.0(lS OOH9215016& 

06/11/200& 0050{l2!13!i13 

SIHlit t ooro Bank Nam* 

111012622 N BAAl( t;ii' 

1 BANK Or- AMERICA, fiJI,. 

" 

[I 

f') 

I"- CO 

N 0 

°1 N 

.... 0

1 '" « -:r :J.l CO 0

00 « 

f/l (J)' 

::> CO 

0.. 

d> 

LO 

a 

.-

o 
235 


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x' " ~ ! i I ' 

. I. 0 

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i> ,> 

15 

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USAO.sS58 

10-10159-PBS (D.MAL0274 

13-1064_0207 
236 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 242 82732.226

~r-"v,:,~:,- . . ... ~ 

!I ,,,,.,,.,. ~~-~ .. ~.~~ ~;';i;~ 

~-~ ..... _'""'uo_ .... --~-

1 • -...... --~. ,"".:::'~:':_ri 

USAO-S559 

10-10159-PBS (D.MAL0275 

13-1064_0208 

Insert graphic folio 243 82732.227pwalker on DSK7TPTVN1PROD with REPORTS

$10 .. :nO,92 

_0'" 

_ Sequence N\1I!\bu: 3392212606 Cllptllr$ OJ)UI 09103/2008 Check NUl'llber; 1611 

. + 

lS11 RoaERT H. EREMIAN I w;n''''r': I N0 '.81'"'''' _ 

','q •• 

. til_-=-

. . "'.'" -"":d'" 

• " • < • 

_ iI" _: I:' ___ OQ1';JI

". 't 

c'. OOCI). ii. 'I r it '. 

rl 

It 

doual\'llilllt& 

Bar;k; , 801"0 SlJonk Name 

)"90)08925114036 HllHlJ46 N SANK OF ,lI,HElUCA, NJi. 

03392222608 1l131034/j:« ij,lUllC or J.NSUC1.., 14k 

O!)'n30fJ9251140)6 1224-01110 y CtTIBANK ISOUTJt DAKO 

Mount: 

Account: 

aafik Nwtber: --. 

r-' 

ROBERT H. ltREMIAN 

P,0,80;()I9' 

• 

St.qut-nce th.ll'llber: 869;:836122 

tAPttlc<!; Date; 09/0412008 

Cheek NUIIIbt'r: 181l 

N° 

+ 

1813 

li' 

__ _ ",--, 

r 

i 

>091911 

s. 

Elactroo,l,c £nclC.nIUIIlIHl.t& 

nata SequonC1l 

C9/G3/20011 

09/03/2008 00821032655., 09/04/2009 00&8928,3.6122 

r 

Bank t BOFO Bank Hame 

!lH91J'!l62 til CHlUlE BANK, 

021QO()021 1\1 JP).!OJI.GA,>< CIiASl: BMlK, 

1l10U&22 N 8J\NK or AHI::I\!CA. HJ\ 

'" "' i 

,.... 

,.... (7) N 0 

0, N 

0, 

« 'It 

8. .... 

(f) M Q) 

.... 0.. 

d> 

10 

0 

.-

Insert graphic folio 244 82732.228pwalker on DSK7TPTVN1PROD with REPORTS

00 

_0933 

__ 

N:JI!\ber, 

Capt.ul"e nat.a; 

Check. llumbf:t: 

'HS24:04.B1Q 

12!l1/lQOB 

1Bd 

'1'53""5' 

ROBERTH. EREMIAN l'.o..II0XalB6 ",,1\1.'. M' .m. ! N 

Wt L,,..,dyd 1/"10 "'" ---r--

1849 

I #J!ilSiLwr !!Islt 

 afP?E5 I *:,g:,d' , 

I H'JjwAdO lAI«rdAMlOl1Jo/' 

, " : ___ 0'123'-

,k)J;&ell\ttnt.. 

equ1!ncC! 

t,1000540 

0'1192413-4&70 

Bank II eort> £!lIonk. 

OH10014f.i Y Ce.'fl!t1lJ., eANl{ ANo. 1ft.U 0410000;'4 

11101292'2 

n:C$RA1.. P.ES SANK Of' 

JIA.'fK 'Jt' t\HZRlCA, N;\. 

.'j 

Amount) S26-,615.33 Sequence ll1:ll'be;:: J5S25i0"210 

J\ceoun't.: Captun t!li\:.el 'l.2/HI2WlJ 

Ban); N,II'11bert _ theel<. Nl.lIr..ber: 1.$50 

6Y'bt luOI 5617 ':;'.1.:1 

ROBERT H, EREMWl I Z""""""" I -tilM.eOX$1n \ stvs\I.'f, M;t nltl& : N<! 1 8. 5 0 

tJ 

__ 

f 

" I I . r ! ! 

• 

___ 0, . II I I IJ 0$9 IP.lOO PEG- crnBAN!( 0'"\' 

...... "' .. : .... N"_,,,- ' .. .....,..... 

tleet:t"QntQ tnd01: •• Jl\efltff 

One. SequencQ Dank I eorn 

12(21/200& 1221081101250118 11131034& N 

12/41/200& U2108:nUSOU8 H2<0l1'lO Y 

lU2:21200a CQ1!t9l590110 N 

Naroo 

&,N;;K or MmRfCA. N.r.. 

C::1'l1iMK !SOU'I'K tlAXO 

WINK OF ArmR.ICA. NA 

1

'1' 

•• 11 

! 

I' 

" 

I I 

II. 

0 

<X> 0 N .... 0 1 N ... 0

1 CD <t: ..,. '" '9 :2 (D 0 c:i 0 ..; 

.... 3 (f) M al .... 0.. 

d> 

10 

(; 

'<"" 

0 
239 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 245 82732.229

:x:t'~Jm;~61 [1--- ,"'"e' ,- ~"""~~1 

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Q} 

.... I - ~.~ 'i 

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USA0-5556 

10--10159·PBS (D.MAL0272 

13-1064_0211 
240 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 246 82732.230

Bank of America __ 

- ..... Capture Date: 0312712009 Sequence It. 1692080118 

ROBERT H. E~62580156 

P.O. 80X 31$ 

BEVERLY. MA 01915 1887 

~~~~~~~:;~~~~~~~[:~::~~§§~~~~~~~~-=~C;H"'~moo~ 

...&!:(.?J!4.ll.A.d...J..J..-l-&.&d.G..J-~~~----I:=~!lJWi:=$ k'h 7,(01.(,51 

A·~<2 -,~"""" d ___ 0'133" 

i '. ~ 

~~t ~~ ~~: 

~ ,. i~ ~ f 1

1

'1' 

: , : ;, For DepoSIt Only 

; ,,15QfOO 25803272009 Pay Any Bank 

X1691Ei37i10Q@ 870 liliGS PliQ GRiifIiOaJJ( "" 

032709 087890 Q2 "122401710< 

Klectrt:::wi.c E:ndo:rseDetlt& 

Dat:.e. sequence. 

03/27/2009 0327099262591.56 

(13/27/2009 0016920110119 

03/27/').009 032709821."1259156 

NO Poyen 2ndarSfmIflllt-& rcmul 

Pag.37of411 

:Be.t:Ilt t BOrn 'l'tUir BankN/l:Qe 

1224.01710 Y Cl?r:t:SAm\ (SOO'l'lt llAJIX) 

11131034C N iii" B.AlDI:: or AMER:tCA~ bIA 

11131.0346 N N' ~ OF AMXRICA.. NA 

Print Req:#2010033100Z825 

., r 

• ;g I 

§s 

I @! 

I~i 

a:;g I g£ 

;;: 

,~ l e~ 

~ 

" 

Frt Apr 02 01:38:52 cor 20J~A0-5567 

10-10159·PBS (D.MAL0282 

13-1064_0212 
241 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 247 82732.231

Bankof America __ 

~ 

Capture Date; 06/0112009 Sequence #: 2192773587 

ROBERT H. EREM1!f!Il527944040216 P..o.BOX31!15 

BEVERLY. MA D19Hi 

1(,0'--653 7 ~ r.:z ';) 

f-----I-.L-..-.jl N~ -HL no 

1907 

......... :_--,: 

E~e.ctrtmic B.ndorSome:D.tlS 

Date 

06/0112009" 

Saq\ltmCe 

060109794404.21(; 

I.Jartk 

122401710 

t 

Y Y 

.aDFlJ 'l'RN 

C:I'l':nwaK 

~ 

(SOO'l'B I.lAXO 

06/0l./2009 060109194404215 11131034.6 N N RANK Ot' AXERtt:A~ NA. 

06/01/20[19 0021.92773SB7 11131il34.6 lil 

No payee E'ndors.~tG Found 

Page B of 86 Print Req:#20100224003161 

i. 

ThU Feb 25 03:38:57 CSi2010 USAO·5570 

10·10159-PBS (D,MAL0285 

13-1064_0213 
242 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 248 82732.232

BankofAmerica ,...,.. 

... 

Capture Date: 0612912009 Sequence #; 2592259674 

ROBERT H. EREMlAN p.o. BOX319S 

BAN!; OF AMERICA 

tr· •••• ,u" .: •••••• ': 

J!:lectX'OQic Rndors\!!!lI'Iru'l"ts 

Date. Seque:nee 

06/27/2009 06270985721106"' 

06/2"'/2009 062709857;21106'4 

IHij29/2009 00.2592259674 

No Payee EDdors~t.6 FouDd 

, 

BOYD 

1.22401710 y 

11131.0346 l1 

111310346 'N 

y """ 

" " 

Page 15 ofB$' Print Req:#20100224003161 

q'Wg· 

...-

Crl':tBAlIIJ\. (SOUTH DAKO 

BA!.1lC OF AMER::rCA~ NA. 

BJWK OF AMJmICA,. N'A. 

N~ 1914 

" 

" 

Thu Feb 25 03:39:07 CST 2010 

USA0-5572 

10-10159-PBS (D.MAL0287 

13-1064_0214 
243 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 249 82732.233

BankofAmerica """ 

~ 

Capture Qate: 0812912009 Sequence #: 2892350914 

ROBERT H. EREMIAN P.O.SOX3195 

BEVERLY, MA 01915 1930 

.1'Y_ 

/100 

CII£CKAMOUI/T 

SI9'(;,.?35.2d 

BAl'll(OFAMUUCA ~J:j ••••• 0'133 .. 

l!:leet:rao.ic El:ldorcements 

Sec;ruance Bank .. BQFD 'l"lUt1 BI!lnkName. 

(]8/28j2009 0829098049:96040 122401710 y Y CI'l'IBA!mt {SOU'r.B 1lAl\O 

DS/28/200SJ 002892360914 111310346 111' 

08128/2009 0&2809804996040 111310346 li1 

No payee lttidornerQePt& Tound 

)1 BAm:: or MERICA; m. 

N .BANlt OF 1UBRI:CA.. n 

Page 35 of as Print Req:#20100224003161 Thu Feb 25 03:39:24 CST 2010 

USAO·5574 

10-10159-PBS (D.MAL0288 

13-1064_0215 
244 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 250 82732.234

Bank of America """" ~~ 

Capture Date: 01/04/2010 Sequence#: 2192319561 

ROBERT H. EREMIAN 

Blect.ranic EDdorsaawmts 

De:t.e S~a 

01/04/2D10 0021.9231956'l. 

01/0.2/2010 01021092584212' 

01/02/2D10 01029.2584.20124 

1110 Payee ltX\dorSflm:Iellts J'ound 

pagelS of 86 

111310346 N 

111310346 N 

:122401710 Y 

>122401710< 

111 ;BANlt: OF AJot!UUCA" a N' ;a.1!,.NK OFAXERlCA.. NA 

lIJ CI'l'l:BANlt (SOt1'l"a IWtO 

Print Req:#20100224003161 

1973 

r. I I r I 

Ii II II 11~ 

~i I 

rhu Feb 25 03:39:36 CST 2010 

USA0-5S18 

10-10159-PBS (D.MAL0292 

13-1064_0216 
245 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 251 82732.235

EXHIBIT 6 
246 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 252 82732.236

BankofAmerica ,..,.. . ~ 

Capture Date: 01)1512009 Sequence #: 4670505916 

ROBERT H. EREMIAN P.O. BOX 3195 

BEVERLY. MA Ol91S 

~ "0 

1857 

~ ·~~~51~~~~~;::;~~~~~~~~~~~~~~~~~~L~E·~ ~~ ChECK AMOUNT 

1tUL{-lLL!=T'-.J...<.::"'"'--.Lfo"-"'-'......".r------t==3ill~:::::::J $ iL}2,~~¥ 

Lj-t< ldUA,,'1 fA', ..2ooJ 

F.,_ ID-I. E5 BAN~ Of AM£AlCA 

_~/Vv.~ ""u:.:{.f);;;'llmf d • " ___ u. 1: ____ .; •••• 0933 11 • ." 

No Blectrt:J;llic Elldorsemenes J'oU.ttd 

.No l'ayEU,! li:ndorsemenes rOWld 

Page 90f48 Print Req:iI20100331002B25 Fri Apr 02 01:38:30 COT 2'UgA0-5565 

10·10159·PBS (D.MAL0281 

13-1064_0218 
247 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 253 82732.237

BankofAmerica """" 

~ 

Capture Date: 0412212009 Sequence #: 4310716362 

ROBERT H. EREMIAN P.O. BOX 319S 

BEVERLY. MA m91S 

No Electrc:m:ic RndorsSIDEIl1ts Found 

NO Payee l!:.lldorse:ments l"oUnd 

Page 47 of 48 Print Req:#20100331002S25 

1893 

Fri Apr 02 01:3S:52 COT 20agA0-5569 . 

10-10159-PBS (D.MAL0284 

13-1064_0219 
248 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 254 82732.238

BankofAmerica """ 

.... 

Capture Date: 0611512009 Sequence #: 4470388463 

ROBERT H. EREMIAN -k.!L 

'" 

1 9 12 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 

Fa,,... /o'l0c J VeL.. p, z 

0:' ~ 

;!I. 

~ j~: s;· 

jg.! 

~,. 

"":"t"_" ....... ,<t'. , t..<:. 

~ii __ " __>.~-~~R. t 

8ANKOfAMElUCA 

••••• 0'13111· 

No Electronic: Kndorce:ments J"oUDd 

lllo Payne Eador&e:oente Found 

Page 12 or 86 Print Req:#201002240031G1 

.......... ,. 

Thu Feb 25 03:39:07 csr tmAO.sS71 

10-10159-PBS {D.MAL0286 

13-1064_0220 
249 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 255 82732.239

BankofAmerica =--

~ 

capture Date: 09115/2009 Sequence #:. 4570813635 

r:-. ~ - ROBERT H. EREMIAN 

~ 

I \'t' IS J 'b<1 p.Q.eOX3195 

t=; TRE>lSUR';' xn 10130138< ...... ~""'~.-.".,.~ r,....,....twt "'I.,"':!. ........,. • ..,..-.,..,. 

iift:.lo.::oOC. c..r:.c...n 0t.t Ct:H':'.''::.LC 

15/J32 'R091409 

:+~57 i?!813835 

8>: • NO ]llectrollic Endorsements Fou.nd 

No :payee EIldorseaae:nts. Found 

Page 40 of S6 Print Req:#20100224003161 Thu Feb 25 03:39:26 CST 19YA0-5575 

10-10159·PBS (D.MAL0289 

13-1064_0221 
250 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 256 82732.240

.. ~.-.", ..... ~ ...... .......-. ~JJ.OIM_IIC 

1---..... ,1 

-""""I 

I~ ~O 

~O 

" 

USA0-5562 

10-10159-PBS (D.MAL0278 

13-1064_0222 
251 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 257 82732.241

BankolAmerica ,..,... 

~ 

Capture Dat.: 20050912 Sequence II: 4370972569 

ROBERT H. EREMlAN P.D. BOX31SS 

BEVERlY. MA 01915 

.,' ••••• IJI' .: •••••• ,: 

No Electronic: Endorsements Found 

No payee Endorsements Found 

Page 79 of 269 Print Req.II20070207000490 

1345 

... -----

Thu FebOB 11:34:09 CST 2007 

USAO·5524 

10-10159-PBS (D.MAL0244 

13-1064_0223 
252 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 258 82732.242

BankofAmerica ,.;;0-

~~ 

Capture Date: 20060111 Sequence#: 0770174924 

.. 

*ll.lO),eo22* 

O}.lUJ200h 

DOIIA70J."1S6'1tl;. 

*l!alOOOOll* 

-COOOC*" 

-SCOb* 

....................... O~3,~ 

No Electronio Endorsements 'Found 

No Payee Endorsements Found 

Page 126 of 269 Print Req.#20070:W7000490 

1.' __ ., 

TIm Feb 08 11:3$:45 CST 2007 USA0-5530 

1Q..10159-PBS (D,MAL0250 

13-1064_0224 
253 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 259 82732.243

BankofAmerica ,..,.. 

~ 

Capture Date: 20060410 Sequenc.1t: 4670107956 

ROBERT H. EREMIAN P.O. bOX 3135 

8tvEAlY. MA 01915 

--., .. :_-,: 

8>, 

No E~eclroni.c Endorsements Found 

No Payee Endorsements FQUI'ld 

Page 160 of 269 Print Req.#20070207000490 

.-klL- 11. 

1424 

~---." 

ThU Feb 0811:37:19 CST 2007 USA0-5532 

10-10159-PBS (D.MAL0252 

13-1064_0225 
254 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 260 82732.244

Bank of America ".".. 

~ 

Capture Date: 20060615 Sequence #: 427Q439581 

ROBERT H. EREMIAN 

,.: •••••• , •••••• 0'1'1:1 .. 

No Electronic Endorsext'lEffits Found 

No Payee Eodorseutents Found 

Page 188 of 269 Print Req.#2007020700D490 

1450 

10-10159-PBS (D.MAL0253 

13-1064_0226 
255 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 261 82732.245

8ankofAmerica s-

~ 

Capture Date: 20060911 Sequence#: 5070712062 

ROBERT H. EREM1AN P.O. BOX31SS 

DEVEfllY. MA (I1!US 

-BL "0 

1492 

OIEtKAMOlJN1' 

110300 .-1 , /ll"",:_ 

----- BANI:: ()fAMEfUCA --Pozw.2ii AlJfltOIPlID:n~-~+"'-O .-~-.~ 

I •••• ,~ , •••••• ': 

No E~ectronic Endo:rsements Found 

No Payee Endorsements Found 

Page 226 of 269 Print Req.#20070201000490 

... '---

Thu Feb OS 11 :39:S4tlSictllB36 

10-10159-PBS (O.MAL0256 

13-1064_0227 
256 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 262 82732.246

BankofAmerica __ 

~ 

Capture Date~ 20070116 Sequence #: 5570822912 

ROBERT H. EREMlAN P.O,BOX3I95 

BEVERLY, MA 01915 

II·' •••• ,,· .:: ••••••• : ••••• O'B3.· 

IS 

;;!J116Et10;' 

~ 

'" '" " n ~;;:;;.:: ..... 

'i 

06;'9649131 

" 'i i ;,j 

',I 

E», '. 

CANS854 • 

No Elect:rotric: Endorsements Found 

No Payee Endorsements .found 

Page 157 of 324 Prlnt Req.l/2oo80208003751 

1543 

... ----.. 

Tue Feb 12 03:29:47 CST 2008 

USAO·5542 

10-10159-PBS (D,MAL0259 

13-1064_0228 
257 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 263 82732.247

BankofAmerica ~ 

"0/" 

Capture Date: 20070418 SequencelJ.: 4270308881 

ROBERT H. EREMIAN P.o. SOX3195 

BEVERLY. MA 01915 

.. AN" OfAMEfllCA 

.. _ .... :_-,: 

o 

i;:~4182e07 

~ ill. 

~ 8> . {"} ==-....:==-~-:.=-~-: 

No Electrolrie Endorsements Found 

No Payee £ndorSEIUI.El:nts Found 

•••• D'1H .. 

page 202 of 324 Print Req.#20080208003751 

N~ 1588 

.. _-_ ... 

Tue Feb 1203:35:49 CST 2008 

USAO-5544 

10-10159-PBS (D.MAL0260 

13-1064_0229 
258 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 264 82732.248

BankofAmerica __ 

. ~ 

Capture Date: 20070615 Sequence #: 4770607354 

ROBERT H. EREMIAN P.O. BOX 3195 

BEVERLY. MA 01915 

....... , •• !l: ••••• ,••••• tcOq,n"· 

No E1ectronic Endorsements Found 

No Payee EndoX'sements Found 

I?age 231 of 324 Print Req.#20080208003751 

1613 

.... --... 

Tue Feb 1203:38:54 CST 2008 

USA0-5546 

10-10159-PBS (D.MAL0262 

13-1064_0230 
259 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 265 82732.249

Bank of America s>-

, -?-~ 

Capture Date: 20070920 Sequence #: 4270090081 

ROBERT H. EREMlAN 

"'_h't: __ ••••• 0'13311· 

J 

I 

9£12359311 CRSS894 

No Electronic Endo:r:s;ements Found 

No Payee Endorsements Found 

Page 270 of 324 Print Req.#200B020B003751 

N~ 1652 

t'. ___ •• 

Tue Feb 1203:43:04 CST 2008 

USAO·5548 

10-10159-PBS (D.MAL0264 

13-1064_0231 
260 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 266 82732.250

Bank of America ~ 

~ 

Capture Date: 20071203 Sequence #: 4470910441 

ROBERT H. EREMIAN P.D.SOX 3195 

.BEVERLY. MA 01915 1685 

.,se CHECK AMOUNT 

~'4J.4w..~o..L~.L."""!.c-..J.LJ.&l~!f.U1-----t=::l,[i<sfltR~lPnt!!.[[N==l$llq~,~~.1 

No Elect-ronic Endorsewmts- Found 

No payee Endorsements Found 

Page 298 of 324 Print Req.#20080208003751 

~~AA~-- ... 

" 

I r 

L 

" 

I~~ I;' 

I " i1; 

I~ ~ I 

!i¥ l Ii! I ~ 

" 

Tue Feb 1203:46:04 CST 2008 

USA0-5550 

10-10159-PBS (D.MAL0266 

13-1064_0232 
261 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 267 82732.251

BankofAmetica """" 

~ 

Capture Date: 20080110 Sequence #: 4270366798 

/ /) 'fo e J ROBERT Ii. EREMlAN 

'I'" {){e .2'.7 P.O. SOUlS. 

--- BEVERLY. MA 01915 

BANK. OF AMERICA 

.. '... ". , ........ ': 

No Electronic Endorsements Found 

.No Payee Endorsements Found 

Page 312 of 324 Prtnt Req.#20080208003751 

......ML ". 

1703 

.~----., 

. Tue Feb 12 03:47:33 CST 2008 

USAO-5552 

10-10159-PBS (D.MAL0268 

13-1064_0233 
262 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 268 82732.252

BankofAmerica =-- " ... 

Capture Date: 20080110 Sequence II: 4210366198 

/6 jfo e J ROBERT H. EREMIAN ." .... {){e .2'07 P.O.80X31S5 

BEVERLY. MA 01915 

J%.DollARS[ 

~ 110 

1703 

CIlECK AMOUNT 

S I ~d JJ'(.I. <lO I J9~~~~~-1WW~ur~----~==~~t=~ ®=~ 

8ANKOFAMERICA 

~~ .AUTHOfUZEOS1~ d----

11· •••• ". ,: •••••• ': •••• 0'1:1:111 • .~' ...•.... ~ 

No El.eotronio Endorsements round 

No Payee Endorsements Found 

Page 312 Of 324 Print Req.#20080208003751 . Tue Feb 12 03:47:33 CST 2008 

'USAO-5552 

10-10159-PBS (D.MAL0007 

13-1064_0234 
263 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 269 82732.253

1-----.,1 

""'-1 

.. 

I 

I i i I .ll 

... '" 

J :l I . 8> R 

I i~ - ~ It l/ ~ 

z 

.. 

';; -F N • <> 

USAO·5562 

10-10159-PBS (D.MAL0010 

13-1064_0235 
264 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 270 82732.254

BankofAmerica~ 

- 0/" 

Capture Date: 0911512009 Sequence It. 4570813835 

U· __ .K· ': ••• _ ... __ 0 ____ _ 

:~ 

iii 

jit 

jil :;j 

~1 " " 

CREDIT r 

4822025822 

:~!.q57f~lB 13835 

:; B> ~t 

iora :Sler:rtX"OUic Ktu3orsEQ:QSl:lts I'ow::ld 

No J.layeo Bndox'se:ments Ft:mJ:W. 

... , 

Fag.40ofG8 Frlnt Req:#20100224003161 Thu Feb 2503:39:26 CST l19StAO.S575 

10-10159·PBS (O.MAL0011 

13-1064_0236 
265 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 271 82732.255

BankofAmerlca -., . ~ 

Capture Date: 0611512009 Sequence #; 4470388463 

ROBERT H. EREMlAN 

1912 

~~~~~~~~~~~~~~~~~~~~~~~~~~ 

F.,,,", (o'l() e J V tL. Pc l 

-:'\'" ...... 1'<'." b.~ SANK OFAMERtCA 

II· •••• "· 1:, •••••• 1: •••••• O'B'in' 

Page 12 <>fas Print Req:#'lOI002240031S1 

., .•..•••.... 

Thu Feb 25 ()3:3S:07 CST WAO.5571 

10-10159-PBS (D.MAL0012 

13-1064_0237 
266 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 272 82732.256

BankofAmerica 

.... __ 

Capture Date: 0111512009 Sequence #: 4670505916 

ROBERT H. EREMlAN P.O. BOX 3195 

BEVERLY, MA 0\9\5 

No alectron:i.c Endorasmants FoUnd 

»0 Payee 2.adorsements l'atmd 

Page B.of4S Print Req:#.20100331002925 

J::!L 

"0 

1857 

.. "----

10-10159-PBS (D.MAL0013 

13-1064_0238 
267 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 273 82732.257

BankofAmerica """"-

~ 

Capture Date: 20070116 Sequence It: 5570822912 

ROBERT H. EREMIAN 

SANK OF AMERICA 

1I· ••• n' I: ••••• ,· •••• O'iB'~ 

o 

(') ~~-

No El.ectronio Endorsements Found 

No Payee Endorsements F01Jlld 

Page 157 01324 Print Req.#200B0208003751 

N~ 1543 

t __ -', 

Tue Feb 12 03:29:47 CST 2008 

USA0-5542 

10-10159-PBS (D.MAL0014 

13-1064_0239 
268 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 274 82732.258

BankofAmerica =-

~ 

Capture Date: 20060615 Sequence #: 4270439581 

ROBERT H. EREMlAN 1'.0.60)(3195 

BEVERlY, MA 01915 1450 

-. QI£Cl:_ I 

l~o.!%'o_03 • 'tn~: 

~;'~""-~~'1 ....... 1: __ • __ ."B:U· , .. _-

No El.ectronio Endorsement$' Found 

, No Payee :Endorsements Found 

Page 188 of 269 Prfnt Req.f120070207000490 Thu Feb 08 11;38:2ts:~~ 

10·10159-PBS (D,MAL0015 

13-1064_0240 
269 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 275 82732.259

BankofAmerica __ 

~ 

Capture Date: 20060410 Sequence II: 4670107958 

ROBERT H. EREMIAN P.O. BOX 31S5 

BEVERlY, MA 01915 

BANK OF AMERICA 

•• ' •••• '". ,: •••••• ,: •••• aJ''l3 ::\11' 

EP, 

No E~eot.x'onic Endoxsements Fotmd 

No payee Endorsements Found 

Page 160 of 269 Print Req.#20070207000490 

1424 

.. __ ..... 

: 'j 

R0409 

I 

, 

I 

i 

I 

I· 

I 

Tbu Feb0811:37:19 CST 2007 

USAO-5532 

10-10159-PBS (D.MAL0016 

13-1064_0241 
270 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 276 82732.260

r 

o 

BankofAmerica """'" 

.~ 

Capture Date: 20050912 Sequence#: 4370972569 

ROBERT H. EREMIAN P.O. sox 3195 

SEVEAl Y. MA 01S1S 

BANK OF AMERICA 

.. '. __ .' ,----

n _._. 

'Nonectronic Endorsements Found 

No payee End<>rsem.ents Found 

Page 79 at 269 Print Req.II20070207000490 

1345 

~---. 

Thu Feb 08 11:34:09 CST 2007' 

USA0-5524 

10-10159-PBS (D.MAL0017 

13-1064_0242 
271 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 277 82732.261

Bank of America ,,;;,-

.-.?~ 

Capture Date: 20060111 Sequence #: 0770174924 

-'lltl012&22* 

OllU/200b 

OD4a70~~Sh'l. 

~~~~JV(M 

~=_ ... ",,"1:.'1 

If]'a.:UI0aOlt* 

*00000* 

*seo£:.* 

IU:JRIn' l\. EREIo!II\II • .o.IOUISIS . 

tl"f'£NJ.""",W$ 

.. ________ •• '13011" 

No Electronic Endorsem.ents Found 

No payee Endorsements Found. 

Page 126 of269 Print Req.#20070207000490 

I 

t· 

-til--

1388 

Thu Feb0811:s5:45 CST 2007 USAO·5530 

10-10159·PBS (D.MAL0018 

13-1064_0243 
272 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 278 82732.262

BankofAmerlca ~ 

, ~ 

Capture Date: 20070920 Sequence II: 4270090081 

ROBERT H. EREMIAN 

lWiK OF AMERICA 

,'· •••• 1· I: •••••• ,: 

No El.eot::ronic Endorsem.entG Found 

No payee Endorsements Found 

•••• Ill'''!:>:;u· 

Page 270 of 324 Print Req.1I20080208003751 

-~ "' N~ 1652 

t __ ~ 

Tue Feb 1203:43:04 CST 200S 

USAO·554S 

10·10159·PBS (D.MAL0019 

13-1064_0244 
273 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 279 82732.263

Bank of America =- . ~ 

Capture Date: 20071203 Sequence#: 4470910441 

ROBERT H. EREMlAN P.O. BOX 3195 

BEVERLY. MA 0'9,5 

No El.eob:oni.o Endorsements Found 

No payee Endorsements FOtmd 

Page 298 of 324 Print Req.#200a020a0()3751 

5-13 -11-'-

1685 

... ____ .f 

r 

" 

Tue Feb 1203:46:04 CST 2008 

USAO·5550 

10·10159·PBS (D.MAL0020 

13-1064_0245 
274 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 280 82732.264

BankofAmerica __ 

~ 

Capture Date: 20060911 Sequence #: 5070712062 

ROBERT H. EREMIAN P.O. BOX3195 

BEVERLY, MA 01915 

BANI:: (If AMEflICA 

I ••••• J~ I: •••••• ': 

No E~ectronic Eruiorsement.s Found 

No Payee Endorsements Found 

Page 226 of 269 Print Req.#20070207000490 

1492 

Thu Feb 0811:39:54tOOr~I6 

10·10159·PBS (D.MAL0021 

13-1064_0246 
275 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 281 82732.265

Bank of America ",.,.. 

~ 

Capture Date: 20070418 Sequence iI: 4270308881 

ROBERT H. EREMrAN P.O. BOX3195 

.. 

g 

~; 

:n 

~ 

BEVERlY. MA oms 

~; EP o =::'~";..:::::....-=_; 

No EJ.ect:roni.o EndorsertleI\ts Found 

llo Payee Endorseanents Found 

•••• IOO'H:! .. 

Page 202 of 324 Plint Req.#20080208003751 

Jl.L. 

'" 

1588 

".---... ~' 

Tue Feb 1203:35:49 CST 2008 

USA0-5S44 

10-10159-PBS (O.MAL0022 

13-1064_0247 
276 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 282 82732.266

BankofAmerica __ 

~ 

Capture Date: 20070615 Sequence #: 4770607354 

ROBERT H. EREMIAN P.O. SOX 3195 

BEVERlY, MA 01915 

BANI( Of ,AMERICA 

.'_~I' ':11. ___ • •••• OcB:!"· 

• » .".. ... 

0171587881 CASS033, 

l"1 

'I 

'{ 

I 

s> i, 

No E1ectroxdc Enc1OX'sement$ round 

No Payee ·Endorseu\ents Found 

Page 231 01·324 Print Req.#200802OBOOS751 

Re6t~· 

/

ij 

'! 

;;; 

.' 

~ 11. 

1613 

." 

r 

.li 

Tue Feb 1203:38:54 CST 2008 

USA0-5546 

10-10159-PBS (D.MAL0023 

13-1064_0248 
277 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 283 82732.267

BankofAmerica __ 

~ 

Capture Date: 04122/2009 Sequence #: 437071 6362 

ROBERT H. EREMIAN P.O. BOX 319S 

BEVERLY. MA alilS 

SANK OF AMemCA 

/--.. ,'I .: 

~ t ~ ! 

~ 

~ 

i 

UUlJ36389em~~inep8 RlJ'l18D9 

WilZI~ 

Wo Bla~ lhtdorsements I'OU%1d 

No payee Endorsements 7cnmd 

Page 47 of 48 Print Req:#20100331002S25 

N~ 

-!i::.!L 

'" 

1893 

Frt Apr 02 01:38:52 cor 20JgAo.s569 . 

10-10159-PBS (D.MAL0024 

13-1064_o249 
278 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 284 82732.268

EXHIBIT 7 
279 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 285 82732.269

CO}JFIDENTIAL 

Subject to the Nondisclosure Provisions ofH Res. 895 of the 110th Congress as Amended 

INRE: 

REVIEW No.: 

DATE: 

LOCATION: 

TIME: 

PARTICIPANTS: 

OFFICE OF CONGRESSIONAL ETHICS 

UNITED STATES HOUSE OF REPRESENTATIVES 

MEMORANDUM OF INTERVIEW 

Robert Eremian's Tax Attorney 

13-1064 

April 24, 2013 

15 Court Square 

Boston, MA 02108 

10:54 a.m. to 11:40 a.m. (approximately) 

Kedric L. Payne 

Paul J. Solis 

Jennifer E. Manning 

SUMMARY: The OCE requested an interview with the witness and he consented to an interview. The 

witness made the following statements in response to our questioning: 

L The witness was given an 18 U.S.C. § 1001 warning and consented to an interview. The 

witness signed a written acknowledgement of the warning, which will be placed in the case file 

in this review. 

2. The witness is an attorney and a partner of the law firm of Flowers and Manning, LLP. He has 

been a partner with the firm since approximately 2000. The firm has two partners and a part 

time employee who is a law school student. Prior to working at the firm he was a partner with 

Flowers and Leichtman from approximately 1984 to 2000. 

3. The professional services that the witness provides include tax law advice, tax return, 

preparation, estate planning, representation of clients before Internal Revenue Service and 

Massachusetts Department of Revenue, and appeals of IRS matters. He advises on both federal 

and state tax laws. 

4. His clients are primarily individuals, but he also a few small corporate clients. It is a broad 

range. The iudividual clients range from low income to those with high net worth. 

5. The witness stated that he has more than thirty years of tax law experience. 

6. The witness told the OCE that he knows Robert Eremian. He first met Mr. Eremian in 2001, 

when Mr. Eremian was referred to him concerning tax issues. The witness believed that 

Representative John Tierney recommended to Mr. Eremian's defense lawyer, Jim Merberg, that 

MOl Page 1 of 4 OFFICE OF CONGRESSIONAL ETIIICS 
280 


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CONFIDENTIAL 

Subject to the Nondisclosure Provisions of H. Res. 895 of the 11 Oth Congress as Amended 

Mr. Eremian work with the witness. '111e witness did not recall if Representative Tierney asked 

him to assist Mr. Eremian. 

7. The witness had a 100% business relationship with Mr. Eremian but was cordial with him. 

8. Initially, the witness assisted Mr. Eremian with preparing late personal tax returns from the late 

1990s to 2001. He then prepared Mr. Eremian's tax returns until August or September of2010. 

The witness ended the client relationship with Mr. Eremian in 2010 around the time that he 

testified in a grand jury proceeding. He was not sure whether the grand jury was relevant to case 

against Mr. Eremian or Patrice Tierney. However, on the advice of counsel, he believed that 

there was a potential conflict in testifying in a matter involving his client. 

9. In preparing Mr. Eremian's tax returns, the witness met with Mr. Eremian occasionally and 

spoke with Mr. Eremian over the phone. There was a time when Mr. Eremian was in Antigua 

and the witness helped him with taxes over the phone. The witness never met with anyone on 

Mr. Eremian's behalf. 

10. The witness stated that Mrs. Tierney provided him with a summary of Mr. Eremian's bank 

account to assist with the preparation of the tax returns. The summary was in a QuickBooks 

document that she would send to him. She began providing this infonnation at some time 

between 2002 and 2004. 

11. The witness told the OCE his last communication with Mr. Eremian was an email that he 

received in late 2011 or 2012 where Mr. Eremian asked him to testify in the trial of Daniel 

Eremian. The witness did not testify in the trial. 

12. The witness recalls first meeting Mrs. Tierney in the late 1990 or early 2000s. He believed that 

he met her at a fundraiser for Representative Tierney and they were malTied at the time. He 

had a cordial relationship with Mrs. Tierney, one that was personal but distant. The witness 

did not provide Mrs. Tierney with any professional services such as advice on tax compliance 

or on tax issues. 

13. The witness' last communication with Mrs. Tierney was in late 2010 or January 2011, when she 

asked that he "'Tite a character letter to the judge in the criminal case against her. He told the 

OCE that he did not write the requested letter based on the advice of counsel. 

14. The witness has known Representative Tierney since they were in high school together and they 

have a friendly and personal relationship. They also attended the same college. Although they 

attended the same law school, the witness stated that they did not overlap because he attended 

the law school's evening program a few years after Representative Tierney attended the school. 

15. The witness did not provide Representative Tierney with any tax advice or other professional 

services. 

MOl -Page 2 of 4 OFFICE OF CONGRESSIONAL ETHICS 
281 


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CONFIDENTIAL 

Subject to the Ncmdlsclosure Provisions Res. 895 of the 1l0th Congress as Amended 

16. The witness described his relationship with Representative Tierney as a friendly, but they have 

not been in contact since 2010. The witness stated that they have not communicated because 

their paths have not crossed. When asked whether his grand jury testimony affected the 

relationship, he said that it did not. 

17. He recalled that he received a campaign contribution request from Representative Tierney's 

campaign committee in October 2012 and he made a contribution. 

18. TIle witness was asked about Mrs. Tierney's transcribed testimony concerning her conversations 

with the witness in the trial of u.s. v. Lyons. He stated told the OCE that he does not recall "in 

depth" conversations about the payments that Mrs. Tierney received from Mr. Eremian. He 

stated that she asked him on the telephone whether the payments from her brother were taxable. 

He believed that this telephone call happened around 2003. 

19. The witness stated that in response to Mrs. Tierney's question, he "probably responded, 'if they 

were gifts, no.'" The witness stated that he did not go into any detail with Mrs. Tierney on 

whether they were properly considered gifts. 

20. The witness stated that the payments that Mrs. Tierney received were listed ou the QuickBooks 

records as a line item "gifts for Patrice." 

21. When asked whether he had any conversations with Mr. Eremian about the payments, the 

witness stated that he talked to him about the gift tax rules in 2003. He stated that Mr. Eremian 

told him that he wanted to give a gift to Mrs. Tierney for ta1cing care of his children and handling 

his checking account. 

22. The witness explained to Mr. Eremian that the gift tax threshold at the time was $12,000. He did 

not advise Mr. Eremian on whether the payments to his sister were gifts. The witness stated that 

he left it up to !vir. Eremian to determine whether the payments were gifts. He did not discuss 

the frequency of the payments with Mr. Eremian. 

23. The witness had no recollection of gifts being made to Mr. Eremian's mother. He does not recall 

any conversation with Mrs. Tierney about gifts from Mr. Eremian to his mother. 

24. When asked whether he believes the payments from Mr. Eremian to Mrs. Tierney were gifts or 

income, the witness stated that he believes that they were gifts because, based on the trial 

transcript and what he has read in newspapers, Mrs. Tierney took care of Mr. Eremian's children. 

He sees this arrangement as a familial obligation. The witness stated that determining whether 

something is a gift is based on what is in the mind of the donor and he thinks that Mr. Eremian 

thought of it as gifts. 

25. The witness stated he had no direct knowledge to inform his legal opinion, only newspaper 

reports and the tmnscripts. 

MOl - Page 3 of 4 OFFICE OF CONGRESSIONAL ETHICS 
282 


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CONFIDENTIAL 

Subject to the Provisions of H. Res. 895 1 10th Congress as Amended 

26. When asked about the legal basis of his opinion that the payments were gifts, the witness stated 

that it was based on his years of experience. When asked whether he was familiar with the case 

of Commissioner ofInternal Revenue v. Duberstein and the standard of detached and 

disinterested generosity, the witness said no. He was shown a copy of the opinion and he stated 

that he did not consider this standard when he provided his opinion. 

27. The witness told the OCE that he never had any conversations with Representative Tierney about 

the payments from Mr. Eremian to Mrs Tierney or about Mr. Eremian tax return preparation. 

This memorandU111 was prepared on April 29, 2013 after the interview was conducted on April 24, 2013. 

certify that this memorandum contains all pertinent matter discussed with the witness on April 24, 2013. 

MOl - Page 4 of 4 

Kedric L. Payne 

Deputy Chief Counsel 

OFFICE OF CONGRESSIONAL ETHICS 
283 


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EXHIBIT 8 

13-1064 0255 
284 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 290 82732.274

Bank of America ,.,... 

~? 

Capture Date: 20051216 Sequence#: 1270872338 

<-\7.-1 tJ/<r 

ROBERT H. EREMlAN 

BEVERlY. MA 01915 

. BANI!.: Of AMEIUtA ' ... _U" 1: ___ •• ••• ~1'l13n· 

No El.eetrOIrle Endorsements Found 

No Paye.e Endorsements; Found 

0"-

W. iJ' IffiUCA,fiA I\V: 

HlI!eel3SC E6346~~ 

12~~~1Sl23-~~. 

Page 118 of 269 Print Req.#20070207000490 

-,,-,- .. " 

1379 

t __ ~ 

I 

Thu Feb 0811:35:24CST2007 

USAO·5529 

10·10159·PBS (D.MAL0249 

13-1064_0256 
285 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 291 82732.275

Bank of America ""'" . .-?~ 

Capture Date: 20061212 Sequence #; 1470893706 

ROBERT H. EREMIAN P.O. 80x 3195 

6EYEftLY. MA. OlglS 

.. __ ... .: ••••••••• •••• ~''iH .. 

No E~ectron.ic Endorsements Found 

No Payee Endorsements FoUlll:t 

Page 145 of 324 Print Req.#2D080208003751 

....!JL. '>0 

1534 

Tue Feb 1203:27:53 CST 2008 

USAO·5540 

10-10159-PBS (D.MAL0258 

13-1064_0257 
286 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 292 82732.276

Bank of America ""'" 

~ 

Capture Date: 20071211 Sequence#: 0870439201 

ROBERT H. EREMlAN P.O.BOX319S 

BEVERt Y, MA 01915 

==-----. '--.·4 

'!! 

No E1ectr-oni.c Endorsentents Found 

No Payee. Endorsements Found 

Page 304 of 324 Print Req.#20080208003751 

1691 

Tue feb 12 03:46:41 CST2oo8 

USA0-5551 

10-10159-PBS (D.MAL0267 

13-1064_0258 
287 


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10-10159-PBS (O.MAL0279 

13-1064_0259 
288 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 294 82732.278

Bankof America ""'" 

'0/ 

Capture Date: 12109/2009 Sequence #: 8692183271 

Slectronic Endorsement£; 

DatI'!! $equ.e.ru:e 

1.:2/09/2009 OOB692:1.S3.l71 

'l:l/09!:2009 000599001004103 

No l'ayee EndorcementG :Fo\md 

Page 69 0186 

.... 

.. ' .. 

I!II •••• O'B ,II'· . .. 

110001::10 

910000022 N N --

Print Req:#20100224003161 Thu Feb 26 03:39:36 CST 2010 

USA0-5S77 

10-10159-PBS (D.MAL0291 

13-1064_0260 
289 


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EXHIBIT 9 

13-1064 0261 
290 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 296 82732.280

Bankof America =-

4""~ 

Capture Date: 20070615 Sequence #: 0792629438 

ROBERT H. EREMIAN 

E~ectronio Endorsements: , Date sequence Bank #- BOm TRN BankName 

20070615 031006539458317 63107513 y Y WACHOVIA nARK, NA 

20070615 000792629438 111012822 N 

No Payee EndorsemAl')ts Found 

Page 232 of 324 Print Req.lI200a020a003751 

J:!L ". N~ 1610 

Tue Feb 12 03:39:00 CST 2008 

USAO·5545 

10-10159·PBS (D.MAL0261 

13-1064_0262 
291 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 297 82732.281

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~.""........ 

Oa mN,M,01$U 

O.t.J.lSOlrl~:;l 

USA0-5560 

10·10159·PBS (D.MAL0276 

13.1064_0263 
292 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 298 82732.282

$31,000.00 Sequence N'..lmber: 

,ount, _5339 Capture Date: 

.lank Number, _ Check Number: 

BankofArnerica .q;-- Cashier's Check 

.. _ •• 1: ••••• __ .'SHtjl' 

~~~~~~l?t~:~~~!~l~~~:'~6:~~1 §~!~~~!~~ LE~ 

i~~if~~N%,1Z1 'lIDlOO l\. "W7 m 

'. 

Electronic Endor~ements 

!lank # !lOFD Bank Name 

6592671270 

04/1312009 

1437211 

No. 1437211 

Date 

04/1312009 

04/B12009 

Sequence 

031006539139902 

006592671270 

063107513 Y 

111012822 N 

WACHOVIA !lANK, NA 

JlANJ( OF AMERICA, NA 

USA0-5S68 

10-10159·PBS (O.MAL0283 

13-1064_0264 
293 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 299 82732.283

EXHIBIT 10 
294 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 300 82732.284

BankofAmerica ...., 

.... 

Capture Date: 0111 m01 0 Sequence It. 3292189081 

ROBERT H. EREMIAN P.o. BOX3195 

BEVERLY, MA 01915 

Ua-Ttwt!aL cvd % 

1975 

CHECK AMOUNT 

5\ I()OO ,- I ta~~U4~~--~~~Gl~~~~~r----------l::::~~~ffi:::::j ~~.~' 

Zleetrotlic Bndorsetlll!!lX1t:.& 

Date .hrqu.eJlce 

01112/2010 003292189081 

01/12/2010 0120007B8 

01/1212010 01200Q788 

li10 Payee Bndorsements round 

Page "'3 of 12 

BANK OF AMERICA 

~~~ /.UIKDIIIZE!:1 SIGNATlJl\E J ••••• 0'1:1:1»· .1' ." 

-. 111310346 lit 

111310346 N 

11301798 Y 

" N 

Y 

Print Req:#20100429002161 

BANJ'; OJ' ADRlCA, NA 

J3,A.tUK OF AIClla:tCA, NA 

EAS'1'31"01~ 

Frl Apr 30 23:31:04 COT 2010 

10-10159-PBS (D.MAL0418 

13-1064_0266 
295 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 301 82732.285

Capture Date: 0210912010 Sequence #. 3492314575 

ROBERT H. EREMIAN P.D. BOX3195 

BE'IEl!lY. MA 01915 

li:lectrol:l.ic: BIldors~t.a 

Dat.e S8Q'W!IXlCII!l 

02/09/2010 (103'92314575 

02/08/2010 (111006063 

D2/0912010 1l110Q6DG3 

No Payee &ndoraaments J'OlUld 

sank .. SOI'D 

111310346 N 

1113103,6 1Il 

1130179S Y 

JiL 

"' 

1982 

-------'---- -

'l'RN saukNeme 

N BANK 07 ANER.ICA. n 

N BJ\NR OF AKSRlCA1 NA 

Y EAS'1'l!RN BANK 

Page 10 of 12 Print Req:#2010042S002161 Fri Apr 3023:31:18 COT 2010 

10-10i59-PBS (D.MAL0420 

13-1064_0267 
296 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 302 82732.286

BankOfAmerica~ 

Capture Date: 12104/2009 Sequence #: 870107521 

P~OUNT 

ROBERT H. EREMIAN P.O. BOX 3195 

BEVERLY. MA Q191S 

04 1 ~,~LMa( 

8ANK OF A.McR!CA 

.. _-, .. ::_-_ .. 

~>" g. 

;>< 

~ 

" 

~i, () .:::;..~.;. . 

No- Electronic EndorGements J'OUnd 

1110 Payee Bndorseme.nts !'Otmd 

Page 67 of 6S Print Req:fl201002240031S1 

1966 

DOUAllSI 

OISC CHECK AMOUNT 

Thu Feb 25 03:39:36 CST 2010 

10-10159-PBS (D.MAL0415 

13-1064_0268 
297 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 303 82732.287

Bankof America ""'" 

... 

Capture Date: 1110412009 Sequence #: 3692067833 

ROBERT H. ERE.MIAN P.o. BOX 3195 

BMRLY. MA 0.915 

JlL 

'" 

1956 

CHftl( AMOUNT 

i 

-I 

$1 10011.-1 -Pfl!:J.-ltl.i/LL~.tkfAJ.-tL-~4r---t~~t::::::J Qi.,.;::::;-' I 

Blectronic 1tndorsements 

Date Sequence 

11;04/2009 003692067833 

11/04/2009 012001230 

11/03/2009; 012001:230 

No PAyee Blldorsements J'OUnd 

Page 57 of 85 

••••• 0'1:13"· 

---.----.. ---~-

111310346 N 

113D1798 Y 

111310346 N 

::U137,.,4S "'-..... lv,-.. -

IlOV 03 Z009 

1)'1 BANK or AraltJ:CA" NA 

Y KAm'BRN BA.biI:K 

N BJWIt OJ' AMBRXCA, NA 

Print Req:#20100224003161 Thu Feb 25 03:39:36 CST 2010 

10-10159·PBS (D.MAL0413 

13·1064_0269 
298 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 304 82732.288

BankofAmerica -. 

...... Capture Date: 10/09/2009 Sequence #: 3992375356 

ROBERT H. EREMIAN 

Electronic KndorGaments 

Date Sequence 

10/09/2009 003992375356 

1.0/09/2009 011002989 

10/08/2009 011002989 

No Payee Er!dorsementa I'OWld 

Page 49 of 8S 

BAril( IJF AMERICA 

••••• Oq 3 "II' 

11131034& N 

11301198 

111310346 N 

N BAm\ OF .um.RlCA~ NA 

y BJISTORN '""'" 

N BAN1'\: OJ' AlImRlCA~ IliA 

Print Req:#20100224Q03161 

~ "0 

1947 

.. '--

Thu Feb 25 03:39:36 CST 2010 

10-10159·PBS (D.MAL0411 

13.1064_0270 
299 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 305 82732.289

BankofAmerica ..... 

Capture Date: 09/1512009 Sequence #: 2092038088 

Pfi,OUNT 

ROBERT H. EREMIAN P.o. BOX 3195 

BEVERlY, MA 01915 

BANK OF AMfRICA. 

••• _., _ •• _D'B:!n· 

slectranic andoraementB 

Date a_a 09/14/2009 0110016'96 

09/15/2009 002092038088 

09/14/2009 011001696 

NO Payee ltndol:'sements I'Ot1nd 

Page 38 of 86 

-* BOrn 

111310346 

111.310346 N " 11301798 Y 

.211372145. aeverly Cooperative Bank Beverly, MA 

...,. 

'" --:aANP;' OJ" AHlIIUCA.. NA 

" BAmt or AMERICA. NA 

Y """"""" BANK 

Print "eq:if201002240031Gl 

bOUJIRSI 

-,,-,- ~" 

1937 

Thu Feb 25 03:39:26 CST 2010 

10·10159·PBS (D.MAL0409 

13-1064_0271 
300 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 306 82732.290

BankofAmerica __ 

~ 

Capture Date: 0811912009 Sequence#; 2092737928 

ROBERT H. EREMlAN 5-" -tJ-,-

1928 

CHfC}( AMOUNT 

~3 rD::",.:::-' 

BANKOfAMfRICA .p~. -_., ••••• 0"133"· 

Bl!I!ICt:ror1ic EndorsazMDta 

Data BeqU.enC1t 

08/18/2009 0110D31112 

08/1912009 011003102 

08/19120Q9 002092737928 

NO Payee ltndorS8IDI!W.tlii round 

Pag. 3D of S6 

.BfttlJt • SOFD '1'RN BankName 

111310346 N N BANI'> OJ' AMERICA" NA 

11301798 Y 

111310346 N 

Print Req:#20100224003161 Thu Feb 25 03:39:24 CST 2010 

10-10159·PBS (D.MAL0407 

13-1064_0272 
301 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 307 82732.291

BankofAmerica -. 

... 

Capture ~ate: 0710712009 Sequence #: 3192416167 

ROBERT H. EREMIAN 

BANK OF AMERICA 

" ••••• ". I:: •••••• ,: •••••• O~ 3 :lu' 

Kleeeron:ic K:cdorSeme.tlts 

Date SeqU8ZlCt!I 

D7/06/2009 012001417 

07/07/2009 003192416167 

07/07/2009 012001417 

No Payee .8%:.MrSt!l:llM!lllt& Found 

Page 17 of 86 

+211372145. Beverly Cooperative Bank Bevorly, MA 

-06~09 1~~~@O~145< -06-09 1Z4gr~O w 

I 9 "'.,,, "'''feller $1205 

111310346 N 

111310346 N 

11301798 Y 

N 

Print Req:#20100224003161 

llANX OF AHlfRXCA, n 

-2:!L 'ID 

1918 

.,., ..••.... ,. 

Thu Feb 25 03:39:07 CST 201 0 

10-10159-PBS (D.MAL0403 

13-1064_0273 
302 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 308 82732.292

BankofAmerica __ 

~ 

Capture Date: 0610912009 Sequence #: 3092930477 

ROBERT H. EREMlAN 

Electronic :!ndorSementll 

oaee Sequence 

06/0912009 003092930477 

06/09/2009 011006128 

06/09/2009 0110061.28 

No Payee EXldorsements Found 

page 11 of 86 

SA'~KO~AM[RICA 

•••••• O'l~~,,· 

a_I 

111310346 N 

111]10346 N 

11301798 Y 

N :aJl.Mt 01' AKiRXCA.. NA 

1St BAlilK 07 AlaRICA, NA 

Y .EAS'rE1W BANK 

Print Req:#20100224003161 

1911 

••••••••••••• 

Thu Feb 25 03:39:07 CST 2010 

10-10159-PBS (D.MAL0402 

13-1064_0274 
303 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 309 82732.293

BankofAmerica ... 

captur. Date: 05106/2009 Sequence #: 2892362825 

ROBERT H. EREMIAN 

Electronic Endorseme2lts 

Date Beque:uce 

05/06;2009 002892362825 

05/05/2009 01200D735 

05/06/2009 012000735 

No Payee EtIdoraemenes J'OUnd 

Page 3 of 86 

Sank • BO!"D 'l'JUiJ' BankNema 

111310346 N N BANI( OF AMBRICA1 n 

111310346 N 

11301798 y 

Prim Req:#20100224003161 

.2:.!L '10 

N': 1903 

CHECK AMOUNT 

Thu Feb 25 03:38:47 CST 2010 

10-10159-PBS (D.MAL0400 

13-1064_0275 
304 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 310 82732.294

BankofAmerica -., 

.... 

Capture Oat.: 04/1412009 Sequence It. 1192478045 

ROBERT H. EREMIAN P.O. BOX3t95 

BEVERtY, MA 01915 

.....!.:!l.... 110 

1894 

GRnSSAMT. OISC. CHECK AMOUNT 

s\I()n;.-1 ~~~~~~--~~~~~~~~k«~~-------i:::::mO,~sc~ru~'nmO~N::::j ~a:~~_~' 

~~~rue.~~~~~ 

lClectrotlic Endorsemtmtb 

Daee Sequence 

04./14/2009 011006527 

D-4/U/20Q9 011006527 

04/14/2009 0011.92478045 

No payee l!:I:ldorsementQ Found 

Page 44 0148 

BANK OF AMERICA 

l 9 OJ7 'OOl 

-:-. 

V~'l 'ApoJ.\V8 "!Ui?g ';:>;,Jlt'i","~lOO!) lilJ91\S9 

t£:-LZlE:Ll.G: • 

""""" * ""'"" TtUI 

111310346 " " --

BANK Or MEara, 

1130179a y y ltAS'l'E ... lWOl< 

111.31.0346 " " BAmt or AQRICA. 

Print Req:1l20100331002S25 

lOA 

NA 

Frl Apr 0201:38:52 COT 2010 

10-10159-PBS (D.MAL0398 

13-1064_0276 
305 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 311 82732.295

Bank of America .... 

Capture Date: 0311112009 Sequence #: 1270866008 

ROBERT H. EREMlAN P.O 60X3195 

SMRLY. MA 01915 

-11-'- ~" 

N~ 1879 

GROSSAMT (lise CHECK AMOUNT 

~~UL~~~~~~~~iI--t=~~t=~sllon.- I 

JJ:~~~ . •••••• ".1: .•••••• 

12708Bf~!'T 

• No Blect.rOllic B:DdonIf!IbIe:I1ts :round 

NO payee Endorsement.s J'cnmd 

••••• 0'133 11• .. .' 

Page 29 of48 Print Req:#20100331002925 Frt Apr 02 01:38:44 cor 2010 

10-10159-PBS (D.MAL0395 

13-1064_0277 
306 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 312 82732.296

Bankof America ........ 

.... 

Capture Date: 0211112009 Sequence #: 1270747626 

ROBERT H. EREMlAN P.O. SOX 3195 

BEVERLY, MA oms 

P:~.UNT O"A,l.:f{./Ii.a4~L aad ,% 

JJL \10 

1871 

GRIlSSAMT Ors •. Mel: AMOUNT 

Lf.!!f!LI-.JI..4f,f-J--/.-J~~~~~~--C:::::Ei~[[:::::::l$1 lab· - f 

BANK OF AMERICA 

;p~;:; •••••• ". ,: •••••• ,· ••••• oq,l:in. 

NO "Blectronic lb'1dors8IDIiU1ta 1"OUnd 

No Payee J!:ndorsement.s J"'oI.:I.nd 

,. >211372145< ,0-09 2~2e 00 10-09 '2128~O 

~ 

Page 22 of48 Print Req:#20100331002825 Frt Apr 02 01:39:39 cor 2010 

10·10159·PBS (D.MAL0394 

13-1064_0278 
307 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 313 82732.297

BankofAmerica -. 

~ 

Capture Date: 0111212009 Sequence #: 4092120574 

P~OUNT 

ROBERT H. EREMIAN 

p.G.aOX3195 

BEVERLY. MA 01915 

SANK Of AMERICA 

··':i".illliiil.'· j.: ••.•.• · ••• ': ••••• Iorf; :ill': 

8>1' 

Zleetronic &l:Idorsemauts 

Date Sequal'lC!e 

01/1212009 004092120574 

01/10/2009 D11005445 

01/12/2009 0110054"5 

No Payee ltndorsements J'oWld 

Page 6 0148 

Bonk t BOI'D ...,. 111310346 N llf 

111310346 llf llf 

1130179:8 y Y 

"'1'1 'A~'Maa ljuna 9AnOla(foo::) A116""EI .S~IUCU?,* 

--

BJUIDI:. or ADRXCA, llfA 

SANK OJ' ADIUCA, NA 

Bl\S'l'E""",""" 

Print Req:#201003:l1002825 

~ "0 

1856 

Frl Apr 02 01:38:30 cor 2010 

10·10159·PBS (D.MAL0392 

13-1064_0279 
308 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 314 82732.298

AmOUl\t: $l~OOO.OO 

Acco-unt: ~933 

Bank Number: _ 

ROBERT H. EREMIAl'I P.O.80X3'9S 

8EVUlY, MA. 01"$ 

....... -

Sequence N~r: 1210109805 

Capture tl3t~: 12/04/2008 

Check Nurnbtr:: IUS 

mr_ u -

N° 

0tJ ~ 

(¢J ..- nou.,,; 

~ ,. 

1845 

,,_, ... : ••••• ': ___ 10'13"" 

10-10159-PBS (D.MAL0389 

13.1064_0280 
309 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 315 82732.299

ROBERT H. EREMI&'< . P.O.SOXlIO! 

8MRlY. MA 01315 

Sequenc¢ MOtt!b.,r: 

Ca.ptur~ nate: 

Check Nutllbe1.': 

299270.664 

Oa/1212008 

li08 

....I;!!.. n. 

1808 

0'133" .. _-

tlect"ronle sndorsern.et\t.s 

Date Sequll!;tnctl 

09/1112008 Ol20293<3 

08/11/2009 012029343 

OBlI21Z008 00299:2704~64 

. ·----J«l\!I"\ilrs'uwr -----------

Teller;l<Z16 

<;;'f,;.rO"9~,i<'" > i;;;;; .. r.ll;) N .I\VU ,000 , ..... '" , ...... 

7ell?r/;216 

Sank Ii Born Bank Name 

011301198 Y EASTERN aA.NK 

111310346 N 9ANK or AMtRICAt NA 

111.3ltH.6 N .aANK of' 1t.ME:~ICA .. HA 

10-10159-PBS (D.MAL0387 

13-1064_0281 
310 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 316 82732.300

--.. -- fF""";~",-:""~'-;i\, 

;.;.: HIlt' ~M~i'f'~Hltn~,~.1J /1 

~' co·olxi'llt. : .... I .. O£!fi'~:;~ :;;~ 

t .~!~i1~~~~~QJJ ~i~;;~~ 

$~q\;e:lCIl Numb<:.r: 1!701lSHe1 

C"pt..u.-e Date: 08/01/2006 

Check ~W'ili(!-r: a02 

N° 1802 

10-10159-PBS (D.MAL0386 

13-1064_0282 
311 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 317 82732.301

Amount: $1,000.00 

/l.cCQcnt: ~93) 

Bank Nl.l:nber: _ 

"_."1=1: ••• 

9' 

Sequence NtWtbe r ; 

Captu.re Date: 

Check Numaer: 

•••• OQH .. 

1270SQ2246 

11/1312008 

1839 

+ 

1839 

" 

1Q..10159-PBS (D.MAL0384 

13.1064_0283 
312 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 318 82732.302

ROBERT H. EREMlAN 

,.0:. sox 3195 

IEVElRY'. MA. alliS 

Sequence Nut:'.bec; 1-270199764 

Capt Uri! Da.-te:~ 13/0912008 

Chedt Nl.:.mbtt': 1925 

1625 

•••• 0'133 ... ,,---

10-10159-PBS (D.MAL0381 

13.1064_0284 
313 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 319 82732.303

Amount: SLOOO.\lO Seqoe.nce- Huniliel;"; 121024(}Jll 

Account: ~9J3 C"'pture O.:;tI~ 09/0412009 

8ankHumbec! ~ Check Number; 19:15 

ROBERT H. EREMIAN P.(I,BOX]JH 1815 

Pc-. at tf,v?JA<&trt. auf. % I5iiiiMij 

.lSirMl tflS3 I ~ 1 

~OFAMPItJ, I( (j 1' __ --

10-10159-PBS (D.MAL0377 

13-1064_0285 
314 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 320 82732.304

Ac;eoUtlt; 

Sank Nl.Imb~u:: 

$l,COO.M ,,3) 

ROBERT H. EREMIA..~ 

'.(I,aOXlln 

BMfII.'f.MAO!91$ 

$eq,J~nc~ Numb.er: 

Ca.pt1u'e Oate; 

Check Ihultber: 

H70~65U6 

0)/03120011 

17~O 

I 

.~rr,*,~" I 4:l--

• ~ I : . N~ 1790 

~~~~~~"'.'~. ~. ,.,7"::# I .P~~~., 

~-". ,:_--,: _OqB~ ~---"" I 

I' 

i. 

III 

I :h. 

LJ. 

Il 

10-10159-PBS (D.MAL0375 

13-1064_0286 
315 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 321 82732.305

... 

I .. 

I i 

i 

I 

0 

.a 

'" 

;: 

~ I~. . .. 

, r * 

IS s> 

~' il ... Ii 

, • (.i. ~ 

., II \ 

_"'i 

g[ 

g s 

~ ~ 

@ I 

~ Ii t'I 

" 

"l !< !II :;:0 

e t'I 

i ~ 

~ 

.u~ 

gn~ .. ~,.,.c; 

f 

- ;z 

.. 

~~ " . 

10-10159-PBS (D.MAL0373 

13-1064_0287 
316 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 322 82732.306

AinOunt: :H~ gOO. ')0 

AcCQunt: ~~33 Bank Number: _ 

ROBERT H. EREMIAN 

PAl.&OX:I\$1 

lEVE!!t.y. W. 01'1~ 

Sequence Number: 

Capture: Oat.: 

Check lfWtibex: 

100904052 

05120/2008 

17~4 

-1J1.. 

'" 1764 

CIIUIt_ 

~~~~~~~~~~---1==~mt==JSI~~~1? 

--P~~. __ ~ 

....... ,: •••• ,·._.O'B3 .. 

~ -r==-~ '":-"~""I:r"""'!'::.:' 

~ . Qt/IO I ,""umll 1»1 II 

~ J1m uuuumu*.~:o M 

I.: 00'008'11 .;1 II£IO:=:~ 

wem;,tIOO .~l¥ 

, -t!IOOO reL 0ZU1I0Il:D WI! ~n"l 

1Q..10159-PBS (O.MAL0369 

13-1064_0288 
317 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 323 82732.307

luncunt: 

A.ecount: 

e.l'l.k N\.I.UIber: 

$1,000.00 

... 

ROBERT H. EREMlAN 

'.0.80)[311$ 

l£VOl't'. W. GirtS 

Se-quene. Nurnbel:; 

Captur. Date: 

Check NUlnber: 

1270693522 

05/081200a 

1136 

-"!L 

'" 

1756 

10-10159-PBS (D.MAL0367 

13-1064_0289 
318 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 324 82732.308

JI.m.ot,nt.: $.1. COO.GO 

Account: ~9l3 Sanl< Number: _ 

.. -~,: .••.. 

Sequence Numb." 1210029919 

Capt'U.ce Date: 04/09/2008 

Check Nurnb1!l:r: 1141 

J:!L n. 

N~ 1741 

10-10159-PBS (D.MAL0365 

13-1064_0290 
319 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 325 82732.309

Amount: 

Account: 

Sank l<h.utlte.t; 

$1.000.00 

~933 

- Sl!!tquen..;~ Uumber: 

ca:Ptur~ Date: 

Ch:eck Nll..'uber: 

:170098070 

03/0S/2006 

1729 

10-10159~PBS (D.MAL0361 

13-1064_0291 
320 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 326 82732.310

Amount~ $1,000.00 

Account: ~933 

Sank N.:mber: _ 

-:ROBERT H. EREMrAN d P.O, 80X 21$$ 

- l SMIIlY. MA 0"11 

Sequence Number-: 1270626.910 

captu.ce Date: 02/08/2008-

Check Nutaber: 1.11.4 

'DrwIIs, 

-.tlL. II. 

1714 

tlIECKAlMlUNT 

.1 1m ,-I ~~~~~--~~~~~~~----:---i::::i~T~~t.:::j ~r:~1 

:P~~ . .. _-- 1'_- ••• a,qB" ~ _ • 

10·10159-PBS (D.MAL0358 

13-1064_0292 
321 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 327 82732.311

$1,000,00 

A.ecount: ~9JJ Sank Numbet: _ 

ROBERT H. EREMlAN 

r-' 

PJun;x;J\3$ 

a£VtRl.'t,lrMtnS1S 

. 

'j 

, U,,:f,.lflfl"fH~·~1j~" II 

,J Gt:~~~~~ ~~:.; ~{4fttCf.~.,ro ~1t".1);: .. 

i ," 'J'2·,.~l:;~· 

f •• 9t)U!'(HU\)u;,;'!!!C~ \1;Io;\n;:"E 

.! 

! 

k -.. ,.,.. ... :1 

sequence thl.l'lOlfr: 13'lO!lS63C9 

Capture ~t1i!; 01/011200e 

Check NUlllber: 16S9 

1699 

;{' 

l I 

10-10159-PBS (O.MAL0357 

13-1064_0293 
322 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 328 82732.312

BankofAmerica .... 

.... 

Capture Date: 20071204 Sequence #: 0770918877 

ROBERT H. EREMlAN P.O. BOX 3195 

BEVERLY. MA 01915 

-lolL H. 

1687 

'j 

P:~lOUNT au < ~J (U>d At: DO~SI 

BANK OFAM£RICA 

.. '._.'''' 1:_ ••• ': 

0, 

~ IfH( If !l£RlCA,/Iol Nt *.611004138 W35 61 peg 

. :~j77(i91Bm hI 

j gb.:t<_"""';";"':" ~.~·R ~ ~~.';~ 

No E1.ectronic Endorsements Found 

No payee Endorsements Found 

• __ O'H3'''' 

Seve .211372145. 

rlYBCooperauve Bank everly. MA 

, .DEC 0 3 2001 . ." 

Page 300 of 324 Print Req.#2ooa020aOO3751 

.. "._--

Tue Feb 1203:46:16 CST 2008 

10-10159·PBS (D.MAL0354 

13-1064_0294 
323 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 329 82732.313

Bank of America __ 

~ 

Capture Date: 20071102 Sequence #: 1992785600 

ROBERT H. EREMIAN P.O. BOX 3195 

BEVERLY, MA 01915 

.... - ... _ ...•.. _-, 

-J:lL '10 

1677 

P~OUNr ~:-tf.nwMj.L4C1d. ~ DoLLARSj 

SANK OF AMERlCA 

11· •••• 1· I::i· ••••••• • ___ Oq,13.· 

Electronic Endorsements 

Date 

20071101 

20071101 

20071102 

Sequence 

012011684 

012011684 

001992785600 

No payee Endorsements Found 

Page 288 of 324 

Bank "" BOm 'l'RN SankNa:nte 

11.301798 y- Y EASTERN .BANK 

111310346 N N BANK OF AMERICA, NA 

111310346 N N l!ANK OF AMtRrCA~ NA 

Print Req.#20080208003751 

., ....... .. 

Tue Feb 1203:44:59 CST 2008 

10-10159·PBS (D.MAL0352 

13.1064_0295 
324 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 330 82732.314

Bankof America ,.,. 

... 

Capture Date: 20071002 Sequence #: 0870415158 

ROBERT H. EREMlAN P_o. BOX3195 

BEVERLY, MA 01915 

BAM OF ••• mutA 

....... ". ,:, ..... ,: •••• OQ33 .. 

15158 8>' c 

No Electronic Endorsements Found 

No payee Endorsements Found 

Page 276 of 324 Print Req.#20080208003751 

--mr 

~ 

1663 

Tue Feb 1203:43:44 CST 2008 

10-10159-PBS (D.MAL0349 

13-1064_0296 
325 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 331 82732.315

Bank of America ""'"' 

...... Capture Date: 20070907 Sequence #: 1370890139 

*OU3017"fh 

a'/O~/2007 

U15lbU 

T'htIIs a LEGAL copy or your 

ebedt You can t.I$e It theNfl'IeVQ1yWWQ\Ilt!\I$e\he _ ....... 

ROBERT H. EREAIIAII '..o.*Jl. RYfty. w. 0111$ 1650 

I riJ "'1'1t;~ ~ ""---------f}- -i1"t )Jc..~ __ MlC,l:QI'MttIIIQ --~ (/' 

.. __ • ,:~qB" 

,._ .... ': ••••• t. 

No Electronic Endorsements Found 

No Payee Endorsements Found 

Page 261 01324 Print Req.#20080208003751 

,,-_ .... 

Tue Feb 1203:42:04 CST 2008 

10-10159-PBS (D.MAL0346 

13-1064_0297 
326 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 332 82732.316

Bank of America -. 

-~ 

Capture Date: 20070808 Sequence #: 1170619810 

ROBERT H. EREMlAN P.O. sox 3195 

BEVERlY. MA (11915 

SANI( OF AMERICA 

.. _.,. ':_-- •••• 0'133'· 

o 

C> 

o 

< 

i 

8 

:i ~_. 

No El.ectronj.c Endors-ements Found 

No payee Endorsements Found 

Page 254 of 324 Print Req.#200802080037S1 

-!:.!!.- ". 

1642 

.~---

.] 

I 

Tue Feb 1203:41:19 CST 2008 

10-10159-PBS (D.MAL0345 

13·1064_0298 
327 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 333 82732.317

BankofAmerica ~ 

~r 

Capture Date: 20070711 Sequence #: 1370334325 

ROBERT H. EREMlAN P.o. BOX 319$ 

8MRLY. MA 01915 I 1627 

;r:;, CH£CX AMOUNT 

SI/d'J<' .-1 rR-llfU!MfL..t:.::i.U<tu:.L<.~u..."...A--t=~~:::::J (ll;i:;;:::"-' 

BANK OF AMfRJCA 

..... , .. :. __ .. , 

No Electronic Endorsements Found 

No payee Endorsements Found 

Page 239 of 324 Print Req.#20080208003751 

........... ~ 

Tue Feb 1203:39:43 CST 2008 

10.10159·PBS (D.MAL0343 

13·1064_0299 
328 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 334 82732.318

BankofAmeric:a __ 

... 

Capture Date: 20070502 Sequence ft: 1270119711 

ROBERT H. EREMIAN 

P,O.80X3195 

BEVERLY, MA 01315 

lANK OF AMERICA 

f; -=;-:--:---:-~' 

~ ~ ttl ") 

~ 

No Electronic Endorsements Found 

No payee Endorsements Found 

Page 204 of 324 Print Req,#200a0208003751 

1597 

I 

.~ 

Tue Feb 1203:36:03 CST 2008 

10-10159-PBS (D,MAL0338 

13-1064_0300 
329 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 335 82732.319

Bank of America .... 

Capture Date: 20070410 Sequence #: 0770711157 

ROBERT H. EREMIAN P.O. BOX 3195 

8EVEIllV. MA 01915 

•• , •••• " •• : ••••••••••• !O'l:Bu. 

0,' 

;;'_f1't.'flllCA.III<I!tL,' 

~.,611~lS8 £U76&1 ~3 ~' . , W1$".r 

!Ef7?i;,ii1115? 1 

P,: . ui 

gi' , 13>" !, 

No Electx:on:i.c Endorsements Found 

No Payee Endorsements Found 

Page 193 01324 Print Req.#200l\0208003751 

...!:lL n. 

1583 

~---... 

Tue Feb 1203:34:40 CST 2008 

10-10159-PBS (D.MAL0336 

13.1064_0301 
330 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 336 82732.320

Banko' America "'" 

... 

Capture Date: 20070313 Sequence#: 1270863910 

ROBERT H. EREMlAN P.o. BOX 3195 

BEVERLY. MA 01915 

...... 1.I:: •••• l! __ .0<1:13" 

0;:-

~::~ 

~.~ :. 

g:" 

~. '" . 

~;i < 8) 

(') ~--::-'=--===-' No Electroni.c Endorsements Found 

No Payee Endorsements Found 

[ IDOl _~ iivw 1 vn'<\f'~ 

lfI.ItIO lWI'JJildlXY.) 4Iw.as > .. !. ,.. ... ,.?<----

Page 186 of 324 Print Req.#2008020B003751 

iSH 

J::louMs, 

I 

... 0000100000,0' 

Tue Feb 1203:33:42 CST 2008 

10-10159-PBS (D.MAL0333 

13-1064_0302 
331 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 337 82732.321

BankofAmerlca _-.::-, 

~ 

Capture Date: 20070208 Sequence II: 0370311434 

ROBERT H. EREMIAN P.o. BOX 319~ 

8E\1E!\LY. MA 0'$15 

i Pf~OUNT aLe +indYh La/ld .~ 

:d :~:~~.~,~.~~~, " 

No Electronic Endorsements Found 

No Payee Endorsements Found 

Page 168 of 324 Print Req.#20080208003751 

IHHHHII1>I1>@@fH' ..., .02-07-07 

,;). 034308875 I. 

-' 

--HL. \10 

f557 

Tue Feb 1203:31:17 CST 2008 

10-10159-PBS (D.MAL0330 

13-1064_0303 
332 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 338 82732.322

Bank of America ....... 

..... Capture Date: 20070109 Sequence II: 1270290236 

ROBERT H. EREMlAN P.O. BOX ll9S 

BEVERl.Y. MA 01915 1541 

DOllARS 

GRUSSAMT OtSC tHEa: AMOUNT 

SI/,WD·- I i '7U£jit-..u;"''-1--F-W<U<&_::l5l!~:!dI~r-------t==:''mjSOll~pntE''''t:=::l 0l;-.• ::1:=· 

dANK Df AMfIUCA 

-/l.(JJL.~J! 

.. ' •••• ". 1: •••••• ,1: ••••• 0'133.· 

No Electronic Endorsements Found 

No Payee Endorsements Found 

Page 154 of 324 Print Req.#200802DaOO3751 

AUntOn2lO $J.t.iNAt'IIlU: (J" 

~. 

Tue Feb 12 03:29:19 CST 2008 

10-10159-PBS (D.MAL0328 

13-1064_0304 
333 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 339 82732.323

EXHIBIT 11 

13~1064 0305 

Insert graphic folio 340 82732.324pwalker on DSK7TPTVN1PROD with REPORTS

'? 

'" t 

... OJ 'f (f) 

"'0 

. 

.j>, '0 

w '0 

o '" '" W <D 

DEPOSITS TO PATRICE TIERNEY ACCOUNTS 

SOURCE - BANK OF AMERICA ACCOUNT NO. 

2004 

2005 2006 2007 2008 

2009 2010 

TOTALS 

EREMIAN 

0.00 0.00 

12.000.00 

12.000.00 12.000.00 

12.000.00 

2.000.00 

50,000.00 

Ex

l

USv. Lyon

Crimi:l0·
335 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 341 82732.325

EXHIBIT 12 
336 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 342 82732.326

BankofAmerica ., ~ 

Capture Date: 01/2612009 Sequence It. 870776797 

j ROBERT H. EREMII\N P.o. BOX3195 

BEVERlY, MA 01915 No: 

.....Hl.-

"' 

1860 

CHECK .AMOUNT 

l'f'+'f,..<I!.£"""-...J,..J. .......... r-~6"""----t==~~=:::J$1 eMt1'),- I 

aANK Of AMEi'!i!C4 ~:n~~;~ AIliJ;c&rul $.jG!lA!'tJ~ 

I~ •••• U· .: •••••• : •••• 0'1:1:1"· r' • 

NO !laet:.ronie li:rIdorsement& J'oU:id 

No PSyt!l8 ltndorsements J"otmd 

Pag.10 01 48 Print Req:#20100331002825 FrI Apr 0201:38:30 COT 2010 

10·10159·PBS (D.MAL0393 

13-1064_0308 
337 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 343 82732.327

BankofAmerica _ 

..... Capture Date: 1211512009 Sequence It. 770731479 

ROBERT H. EREMlAN P_O<BOX3195 

BANK Of AMERICA. 

.·' •••• 11· ,: •••••• 

NO slactrt'lllie :Ecdoraeat'lenta J'O\Uj.d, 

No Fayee Endorsements J'oW:ld 

••••• OQ33u· 

Page 70 of 8S Print Req:#20100224003161 

1969 

.~ ....•... ,. 

Thu Feb 25 03:39:36 CST 2010 

10-10159-PBS (D.MAL0416 

13-1064_0309 
338 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 344 82732.328

ROBERT H. EREMlAN r .0. 1IOX 3191 

8fVEU.Y. lolA 01915 

Stl~ence Numicer: 970U81l$ 

Capture bat~: 02/2212008 

Check N~e.r~ 1725 

-iiit725 

.. -.. " ••••••• O'lH" 

~--. 

10-10159-P8S (D.MAL0360 

13-1064_0310 
339 


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$183.15 

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ifV£1Il1'.MA-(l19fS 

5eq-..IenceN'lIl'.ber: 131(8)1204 

Capture O;ate; 04/0912008 

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Mount, $461.25 

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ROBERT H. EREMlAN P.O.8OXll95 

eMf,t'f, MA olm 

Sequence tiUlllber: 1)10037523 

Capture Date: 05/2212003 

Check ti\l!:lbll:J;"' l-H'1 

17 6 7 

" __ at ' ••••• : ___ 0'113" 

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" . an, 

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AmQunt: 

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~33 

ROBERT H. EREM.fA.N 

'.0. BOX31!S 

BM .. !l.Y. MA Olfl! 

..... '.1: •••• ',· 

sequence Num.t:ter: 

Capture Date: 

Check Numbe,r ~ 

1210l2613. 

10/1612008 

1830 

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lImount, SlOO.OO Sequ~nc.e Number: 17:1012110 

Account, _)9~J Capture Oat., 11/2412008 SankNlJlIlber; _ Check Nwnbe,t: 1841 

J 

ROBERT H. EREMJAN 

N~ 1841 

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BankofAmerica .;::;:::.. 

~ 

Capture Date: 20071002 Sequence #: 1470197235 

. .~ 

, -.... . .- ROBERT H. EREMlAN 

.-_". t: .••••••. : 

No Electronic Endorsements Found 

No payee Endorsements Found 

Page 274 of 324 Print Req.#20080208oo3751 

1665 

~---. 

Tue Feb 1203:43:31 CST 2008 

10-10159-PBS (D.MAL0348 

13.1064_0315 
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Bank of America .s:.., 

~ 

Capture Date: 20071029 Sequence #: 0870754736 

ROBERT H. EREMIAN P.O.80X3195 

BEVERLY, MA OI~15 

No Electronic Endorsements Found 

No Payee Endo~sements Found 

~ 

t:;870754736 

Page 286 of 324 Print Req.#20080208oo3751 

1674 

1 

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Tue Feb 1203:44:46 CST 2008 

10-10159-PBS (D.MAL0350 

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EXHIBIT 13 

13-1064 0317 

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UNITED STATES HOUSE OF REPRESENTATIVES 

FINANCIAL DISCLOSURE STATEMENT FOR CALENDAR YEAR 2007 

FORM A page-.unlD DEL For use by Members, officers, and empl;y:;1 r • V 

Filer 

Status 

Report 

Type 

John F. Tierney 

(Full Name) 

Ii!l Member of the U.S. State: MA 

House of Representatives District: 00 

Annual (May 15) i 0 Amendment 

: 0 Officer Or 

Employee 

o Termination 

- ;'F0f:U?CT 

202-225" I 4 PH !: 48 

(Daytime Telephon&j-' ,. 1 (qtfice.I,J§e O

Employing Office: . ". 

Termination Date: 

be assessed ag

-< anyone who flie

more than 30 da

late. 

PRELIMINARY INFORMATION - ANSWER EACH OF THESE QUESTIONS 

I. 

Old you or your spouse have "earned" hicom:e(e-:-g., salartea or 'ees) of $200 or more from any source In Ute reporting period? 

If yes, complete and attach Schedulel. 

Yea No 0 

Old My individual or 0",_ make ,,'_etlon to chartty In 1teu of pay;ng 

II. you for a a_h, a_ranee, or article In the ",porting period? Ves 0 No [iiJ 

If yes, complete and attach Schedule II. 

-oid YOU:you,:-;PouH, or. deperldent child receiVe "unearned" inCome of 

III. mono than $200 In the "'portlng .... lworth Yes [iiJ No 0 

more than $1,000 at the end of the period? 

If yes, complete and attach Schedule III. 

-Old yoU. spouse, or ttependent child puteh.le. HII, or exc'hiAng. any 

IV. reportabitassetlnalro",,"_exc_ing$1,000duringthe"'portIng Yea Ii(} No 0 petfOcf? . . 

II yes, complete and attach.Schedule IV,__ . __ 

Old you, your spouse, or a dependent child receiVe-any reponabte 91ft in 

VI. the reporting ptrlod (I.e., aggregating more than $305 and not otherwise 

exempt)? 

If yea, complete and attach Schedule VI. 

--old your spOuse. or iii dependent child reCeive any r*POrtable travef 

VII. relmbureatnents for lravel In the nopoI1ing 1_ mono than $305 

from one aource,? 

If yes, complete and attach Schedule VII. 

Old you hOld any r.porubte positiOM on or tMttore the date Of flllng .nthe VIII. cummlca_yvar7 

If yes, complete and attach Schedule VIII. 

Did you tulve any reportable agreement or "arrangemem with an outside IX. entity? 

. 

__ If_yes, complete and attach IX. 

Yes 0 Yes 

Yes 0 

Yes o 

f-- Old you, your spouse, or. dependent child have any reportable liability (more 

V. than $10,000) during the reporting Yes 0 No Each question In this part must be answered and the approp

l!1..es-,-£<>mpletll and attach Schedule V. schedule attached for each "Yes" response. 

EXCLUSION OF SPOUSE, DEPENDENT, OR TRUST INFORMATION •• ANSWER EACH OF THESE QUESTIONS 

Trusts- Details regarding "Qualified Blind Trusts" approved by the Committee on Standards of OffIcial Conduct and certain other "excepted 

trullls" need not be disclosed. Have you excluded f.om this report details of such a trust benefitIng you, your spouse, or dependent 

ch!!<rL 

Exemptions- Have you eXCluded from this raport any oth ... _, "unearned" income, tranaactlons, Or liabIlities of a spouse o. dependent child 

because they meet all three tests for exemption? 

Vea 0 NYea 0 N

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CD 

SCHEDULEI-EARNEDINCOME Name John F, Tierney 

List the source, type, and amount ot earned Income from any source (other than the filer's current employment by the U.S. Government) totaling $200 or 

during the preceding calendar year. For a spouse. list the sourte and amount of any honoraria; list only the source for other spouse earnetS income exc

$1,000. 

Source Type Amount 

Tierney Designs Spouse's Business I N/A 

L 

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SCHEDULE III - ASSETS AND "UNEARNED" INCOME r Name John F. Tierney 

BLOCK A 

Asset and/or Income Source 

kientlfy (a) each asset held for Investment or production of Income With 

a fair market value exceeding $1.000 at the eod of the reporting period. and ib) any other assets or sources of income which generated more 

than $200 in income during the year. For rental property or 

land. provide a complete address. Provide full names of stocks and 

mutual funds (do not usa ticker symbols). For all fRAs and other 

r&tlrement plans (sUCh as 401(k) plans} that are self diteCted (I.e., plans 

in wf'Iicfl you have the powet, even if not exercised. to select the specific 

provide tne value and Income infonnation on each asset 

in the account that exceeds the reporting threshold. For retirement 

plans that are not seW-direct.ed, name the institution holding the account 

and its value at the end of the reporting period. For an actiVe business 

that /.s not publicly traded, state the name of the business, the nature of 

its activities., and Its geographic location in Block A. For addit{onaf 

information, see the Instruction booklet. 

c)tclude: Your personal resldence(s} (unless there Is rental ineome}; any 

debt owed to you by your spouse, or by or your spouse's chlld, 

parent or sibling; any deposits totaling $5,000 or less in personal 

savings accounts; any financial interest In or income derived from U.S. 

Government reHrement programs, 

If yOIJ so choose, you Illay indicate that an asset or iocome $ouree 15 

that of your spouse (SP) or'dependent cbild (DC) or is jointly held (JT). 

in the optional column on the far left. 

JT 

JT JT 

Cisco Sys Inc 

"1 ---- --- -

I Citibank NA-Bank Deposit 

Program 

r Disney Co., Walt ! 

- -\- - - -

I Federated Capital Reserves 

i (formerly known as Prime Fund 

_ _ . 

I Hewlett Packard 

M';s;n P;rtners All Cap 

I Fund Class A 

BLOCKS 

Year-End 

Value of Asset 

at close of reporting 

year. If you use a 

valuation method other 

than fair market value, 

please sl)eclfy the 

metftod used, If an 

asset was aold and Is 

included only because 

It is generated Income, 

the "tatue shQuld be 

"None," 

BLOCKe 

Type of Income 

Check all coJumns that 

apply. Check "None" if 

asset did not generate any 

Income durfng the 

calendar year. Jt other 

than one of the U$ted 

categories. spec::ify the 

type of Income by writing 

a brief desCription in this 

block. tFot 8:.tample: 

Partnership in"ome or 

Farm Income) 

$15,001 - I None 

$50,000 I 

T - - - - ;- - - -

$15,001-$50,000' Interest 

i $1,001 - $15,000 r DIVIDENDS 

1 $250,001 -

$500,000 

INTEREST 

$1,001 - $15,000 I DIVIDENDS 

$15,001 - None 

$50,000 

r 

BLOCK 0 

Amount of Income 

For retirement plans or 

accounts that dQ not allow 

you to choose specific 

investment&, you may write 

-HAft fot Ineome. For aU 

oth8f assets. indicate the 

category of income by checking the appropriat& 

box below. DiIIidltnds. even 

if reinvested. should be 

listed 8$ income. Check 

"None" if no income wa$ 

earned. 

NONE 

$201 - $1,000 

: $1 - $200 

I $201 - $1,000 

, 

, $1 - $200 

I NONE 

3,,& 

B

Tra

Indi

had 

{Pl. 

exch

exce

$1,0

repo

-, 

E 

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'" en I .... '" '" 

SCHEOULE 11\ - ASSETS AND "UNEARNEO" INCOME Name John F. Tierney 41 

JT JT JT 

JT 

JT 

JT 

rp 

JT 

JT 

, MA St Cons Lns i $15,001 - ' INTEREST 

$50,000 

MA st. GO Bonds $15,001·, INTEREST 

$50,000 

i MA State Water Pollution 

, Nike Inc. Class B 

Parametric Tech Corp 

. Prime Fund Daily Money (now 

known as Federated Capital 

_ 

, Resolution Trust 

i-sB/Money Funds Gov't-Port 

, Class A (now Western Asset 

Government Money Market ...flJn<! f.) _ _ _ 

i Strips-Tint-US Treasury 

! Talk Realty Trust (1/4 interest) 

I 133 Washington Street, Salem, 

MA 

Time Warner Inc. 

None 

$15,001 -

,$50,000 

INTEREST 

DIVIDENDS 

$1,001 - $15,000' None 

None None 

$15,001 -

, $50,000 

INTEREST 

None 

.J._ 

INTEREST 

$1,001 - $15,000 i INTEREST 

, $100,001 -

1$250,000 

RENT 

-, $1,001- $15,000 i DIVIDENDS 

, 

$1,001 - $2,500 $1,001 - $2,500 

$1,001 - $2,500 

- $201 - $1,000 

NONE 

,s 

- -; -

$5,001 - $15,000 ' E 

, NONE 

i $201 - $1,000 

, $201-$1,000 

I 

: $5,001 - $15,000· --

I $1 - $200 

- - 1--

Veri;zon Communications $15,001 -

$50,000 

I DIVIDENDS $201 - $1,000 

_ 

-1 

__ 

I Wright Patman F.C.U. 

t __ .. --

i $15,001 -

i $50,000 

! INTEREST , $1 - $200 

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N 

N 

SCHEDULE IV - TRANSACTIONS I Name John F. Tierney : 

Report any purchase, sale or exchange by you, your spouse, or dependent ehUd during the reporting year of any rea) property, stocks. bonds. commodit

or other securities when the amount of the transaction or series of transactions exceeded $1,000. Include transactions that resu&ted in a loss. Do not rep

transaction between you, your spouse, or your dependent child. or the purchase or sale of your personal residence, unless it is rented out ProvIde a bri

JT Asset Transaction Oate Amount of Trans

JT 1 MA Sf. Water Pollution is! 2/1/07 : $15,001 - $50,000 

-.------ J - -,-- --

JT I Federated Capital Reserves (formerly known as 1 E , 12m07 i $250,001 - $500,0

Prime Fund Daily Money) I -1------- - ---- - -- - - ------ 

JT 1 Prime Fund Daily Money (now known as I E 12m07' $250,001 - $500,0

! Federated Capital Reserves)______ _I __ ' _______

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SCHEDULE VII - TRAVEL PAYMENTS AND REIMBURSEMENTS IN Joh F Ti ame n. ferney , 

1dentify the source and tist trave' itinerary, dates. and nature ot expenses provided for travel and travel..related expenses totaling more than $305 receIve

your 1lpouse, or a dependent chHd during the reporting period. Indicate whether a family member aceompanled the 1taw •• r at the sponsor's expense. a

amount of time, If any. that was not at the sponsor'. expellee. Disclosure is required regardless of whether the expensQ were reimbursed or paid direc$ponaor. Exc1ude: Traveloofe\ated expenses provided by 'edera), state, and local governments, or by a foreign government required to be separately repo

the Foreign Gifts and Decoratton& Act (5 U.S.C § 7342); political travel that Is required to be reported under the Federal Election Campaign Act; travel pr

&pou$e or dependent child that is totally independent of hl$ or her relation$hlp to you. 

Was a Family Day

Point of Departure- Lodging? Food? Member Included? spo

Source Date(s) Destination-Point of Return (YIN) (YIN) (YIN) ex

The Congressional : Feb 20-25 , Boston-San Juan. Puerto 'y Y Y : None 

Program of the Aspen , , Rico-Boston , , 

Institute 

f The- - - - : -May 28= -- - -, - y - - - - y : Y None 

Program of the Aspen , June 3 Boston Institute 

1

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

The Congressional Nov. 27-

I Program of the Aspen ; Dec. 2 ! Institute 

, Boston-Liberia. Costa Rica-

: Boston 

Y 'Y,Y , , - ,None 

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UNITED STATES HOUSE OF REPRESENTATIVES 

CALENDAR YEAR 2008 FINANCIAL DISCLOSURE STATEMENT 

FORMA Page 1016 rL'· 

For use by Members, officers, and employees 

r::::TfT 

:; 14 Pi: S: (5 

IJohn F. Tiemey 202-225'" 

(Offi¢8 !Jse OIiIYY (Daytime Telepnonej 

Flier 1li2l Member of the U.S. State: MA 0 Officer Or 

Status I House of Representatives District 06 Employee Employing Office: 

,_-==c-=::== 

Report L'\ Termination Date: 

Type L li2l jAnnual (May 15) . 0 Amendment 

PRELIMINARy INFORMATION - ANSWER EACH OF THESE QUESTIONS 

A $200 penalty shall 

be assessed against 

anyone who files 

more than 30 days 

late. 

I. 

Did you or yoUripous. have "_" Income (e.g., salarifl or 1900) of 5200 ; Old you, your apo .. e, or. dependent child _. any reportable gift in the 

or more Irom any IOUfceintherepoltingpellod7 Yes li2l No 0 VI. reporting ""riot! p.e., aggregallng mon!lhan $335800 not otherwise Yes 0 No IllI ' exempt)? 

H yes, complete and attac:h Schedule I. If yes, complete and atI3Ch Schedule VI. _r •• __ _ 

Old you, your spouse. or. deperUtent chiid-iec---Cel'""v.'-.:-ny'-'-re:-portabI-:-:-:-;' travel or 

VII. relmbursemantstor .... vel Inthereportlng period (worth more than 5335 Yes li2l No 0 

from one aourc.)? 

Old any Individual or organizatiOn make a donation to-cnarttY" in lieu of paying 

II. you for a speech, appearanco, 0< artICle in the reporting period? Yes 0 No li2l

1 

If yes, complete and attach Schedule II. 

OkiYou. your spous;,c;ra-• .,.rident child reeaiV. "uneimed'" income oiIII. more than 5200 In the reporting period or hold any reportable _t worth 

more than $1,000 at the of the period? 

H yes. c:omplete and atl3Ch Schedule VII. 

I "'Did' you"hOida;'" reportable pooltlon. on or before the data of ftlklg In the Yes li2l No 0, VIII. ourrent •• _rYHr? ! 

If yes, complete and attach Schedule III. H yes, complete and attach Schedule VIII, 

Old you, your spouse-,-or dependent child piirchase, self, or exchange any Old YOu nave any fepo.uble agreemet of arrangement" WIth an outside 

IV. reportabl"Het In a transaction exo_lng $1,000 during the reporting Yes li2l No 0 IX. entHy? 

period? 

If yes, complete and attac:h __ "___ _-1.--_ If yes, and attach Schedule IX. 

Did YOU. your spousel or a dependent c:hUd have any ,..por1able lIabdity (more ' 

Yes 0 No li2l Yes o No li2l 

V. than $10,000) during the reporting ""riot!? Yes 0 No Iiil: Each question in this part must be answered and the appropriate 

I Ifves• complete and attach Schedule V. i schedule attached for each "Yes" response. 

EXCLUSION OF SPOUSE, DEPENDENT, OR TRUST INFORMATION - ANSWER EAc:H OF THESE QUESTIONS CD, 

CI 

(.,) 

Trusts- Details ..,garding "Qualified 61incl Trusts" approved by tne committee on Standards of Official Conduct and certain other "excepted 

trusts" need not be disclosed. Have you excluded from this report details of such a trust benefiting you, your spouse, or dependent 

child? 

Exemptions- Have you excluded from this report any other assets, "unearned" income, transactions, or liabilities of a spouse or dependent child 

because they meet all three tests lor exemption? Do nol answer "yes" unless you have first consulted with the Committee on 

Standards of Official Conduct. 

Yes 0 No li2l 

Yes 0 No li2l 

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SCHEDULE I-EARNED INCOME Name John F. Tierney 

Wet the source, type. and amount of eamed income from any source (other than the filer's current employment by the U,S. Govemment) totaling $200 o

during the preceding calendar year. For a spouse, list the source and amount of any honoraria; liat only the source for other spouse earned income ex

$1,000. 

Source Type Amount 

Tierney Designs : Spouse Salary NfA 

Insert graphic folio 360 82732.344pwalker on DSK7TPTVN1PROD with REPORTS

.. 

o 0) 

I .... 

o 

W 

N 

0) 

SCHEDULE 11\ - ASSETS AND "UNEARNED" INCOME I N J h F T· ame 0 n . lemey 

BLOCK A 

Asset and/or Income Source 

Identify (a) each asset held for Investment or production of Income with 

a fair market value exceeding $1.000 at the end of the reporting period, 

and (b) any other assets or sources of Income which generated more 

than $200 in "unearned" income during the year. For remal property or 

land, provtde a complete address. Provide fufl natn8$ of stocks and 

mutual funds (do not use ticker symbols). For alilRAs and other 

retirement plans (such as 401(k) plans) that are sel' directed (i.e •• plans 

in \'IIhieh you have the power, even if not exercised, to select the specific 

investments). provide the value and incoma Information on each apt 

in the account that exceeds: the reporting threshold. For retimnent pJan8 

that are not aeff4irected. name the institution holding the account and 

its "'#alue at the and of the reporting period. For an actiVe business that Is 

not publicly traded, state the name of the bustneas. the nature of its 

activities. and its geographic location In Block A. f"Ot additional 

information ... th9 IrtstrueUon booklet. 

Exclude: Your personal residenee(s) (Unless there is rental Income); any 

debt owed to you by your spouse, or by your or your spouse's ehlld. 

panmt or sibling; any depOSits totaling $5.000 or len in personal 

saYings accounts: any financial interest in or income derived from U.S. 

Government retirement program •• 

If you so choose, you may indicate that an asset or income source is 

that of your spouse {SP) or dependent child (DC) or is jointly hekl (JT), In 

the optional column on the far left. 

JT I Cisco Systems Inc. 

BLOCKB 

Year-End 

Value of Asset 

at close of reporting 

year. If you use a 

valuation method other 

than fair mal1(et value. 

p"' ..... poclfythe 

method used. If an 

asset was $Old and i& 

included only because 

It Is generated Income, 

the value should be 

"None:' 

$1,001 - $15.000 

BLOCKC 

Type of Income 

Check all columns that 

apply. For retirement 

plans or accounts that do 

not allow you to choose 

speciflc IDvestments. you 

may write "NA". For all 

other assets including all 

(RAe, Indicate the type of 

In<<Hne by checking ttMll 

ilppropriate box below. 

Dividends and Interest, 

even if reinvested. should 

be listed _ income. 

Cheek "None" if asset did 

not generate any ItI(;ome 

during the calendar year. 

None 

i NA-Bank -DepOSit --_.-

Program (this account was 

--h 

. None INTEREST 

JT 

JT JT 

, terminated and balance 

deposited into Western Asset 

Government Money Market 

Class A) 

: Disney Co .• Walt 

Federated Capital Reserves 

Hewlett Packard 

; $1.001 - $15,000 DIVIDENDS 

$250,001 -$500,000 

INTEREST 

$1.001 - $15,000 DIVIDENDS 

SLOCKO 

Amount of Income 

For retirement plans or 

aecount$ that do not allow 

you to choose specific 

Investments, you may wrlte 

"HAlO for income. For all 

other assets, inCluding all 

1RAs, Ind'_ the category 

of Income by checking the appropriate boo below. 

Dividends and intel'e$t,. even 

If reinvested. should be 

listed as Income. Check 

"None" if no income was 

earned or generated. 

! NONE 

$201 - $1,000 

! $1 - $200 

$5,001 - $15,000 

$1 - $200 

Tra

Indi

had 

(P), 

exe

exc

$1,0

repo

'E 

I 

p 

Insert graphic folio 361 82732.345pwalker on DSK7TPTVN1PROD with REPORTS

SCHEDULE III - ASSETS AND "UNEARNED" INCOME I Name John F. Tiemey 

i Legg Mason Partners All Cap : $1,001 - $15,000 I None NONE 

i Fund Class A ! I 

-- -1---- --- ----- ---

JT , MA State Cons Lns $15,001 - , INTEREST • $1,001 - $2,500 k-- $50,000 

----

--- -------, 

JT I MA State GO Bonds i None INTEREST I $1,001 - $2,500 

JT I Nike Class B $15,001 - I DIVIDENDS i $201 - $1,000 

$50,000 

JT Parametric Tech Corp $1-$1,000 I None NONE 

Trust 

j 

None : None INaNE 

Strips-Tint-US Treasury I $1,001 - $15,000 i $201 - $1,000 

Talk Realty Trust (1/4 interest), I $100,001 - I RENT $5,001 - $15,000 

: 133 Washington Street. Salem, , $250,000 ' 

, MA 

JT 

T---

I Time Warner Inc. $1,001 - $15,000 DIVIDENDS i $1-$200 

Verizon Communications I $15,001 - DIVIDENDS $201 - $1,000 

$50,000 

Western Asset Government $50,001 - INTEREST ' $2,501 - $5,000 P 

I Money Market Fund Class A $100,000 ! 

(funds from terminated Citibank 

NA-Bank Deposit Program 

.. 

II 

account were deposited into 

... this .:. 

C) en Wright Patman F.C,U. $15,001 - INTEREST $1 - $200 

$50,000 C) 

... 

N 

.... 

Insert graphic folio 362 82732.346pwalker on DSK7TPTVN1PROD with REPORTS

... 

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I"" 

C> 

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SCHEDULE IV - TRANSACTIONS 1 Name John F. TIerney 

Report any purchase, sale. or exchange by you, your spouse, or dependent child during the reporting year of any real property. stocks. bonds, commodit

or other seeurities when the amount of the transaction exceeded $1.000. Include transactions that resulted In a loss. Provide a brief description of any e

00 not report a transaction between you, your spouse, Of your dependent child. or the purchase or sale of your personal residence, unless 

out. If only a portion of an asset Is sold, please so indicate (i.e .• "partial sale"). See example below. 

SP. 

DC. 

JT Asset 

"':.I.!I-. 

__ 

I .... A D __ I# ___ :4. l""< ______ , .. 1-1_ 

I Into Western Asset Government Money Market 

. Fund Class A) __ I Federated Capital Reserves 

. 

__ 

.. 

__ _ 

JT ! MA State GO Bonds 

Western Asset Government Money Market Fund i Class A (funds from terminated Citibank NABank Deposit Program account were deposited 

into this account) 

! 

Type of 

Transaction Date Amount of Trans

E 05-08 I $15.001 - $50,000 

I 

_ I 

1$15,001 - $50,000 

$15.001 - $50,000 

p Monthly 

s 

p 

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SCHEDULE VII - TRAVEL PAYMENTS AND REIMBURSEMENTS Name John F, Tiemey 

Iidentify the source and list travel itinerary, dates, and nature of expenses provided for travel and travel*related expenses totaling more than $335 receive

set or a dependent child during the reporting period. Indicate whether a family member act:ompanied the traveler at the sponsor's expense, an

ny, that was not at the sponsors expense. Disclosure Is required regardless of whether the expenses were reimbursed or paid direc

Travel-.related expenses provided by federal. state, and lOGal governments. or by a foreign government required to be separately repo

ign Gifts and Decorations Act (5 U.S.C § 7342); political travel that Is required to be reported under the. Federal EIecUon t.lmpalgn Act; travel pro

pouse or depandent child that is totally Independent of his 0< her relationship to you. 

Source 

Aspen Institute 

Congressional Program 

Aspen Institute 

Congressional Program 

Date(s) 

February 

18- 20 

August 

15 - 23 

Point of DepartureDestination--Point of Return 

Boston-Charleston, SCBoston 

Boston-Paris-Boston 

Was a Family Day

Lodging? Food? Member Included? spo

(YIN) (YIN) (YIN) ex

Y Y 

i 2 day

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, Page 1 oIS··' .. , or-S1)l}Rf':F ':':'i..F c::

UNITED STATES HOUSE OF REPRESENTATIVES FORMA 

CALENDAR YEAR 2009 FINANCIAL DISCLOSURE STATEMENT t For use by Members, officers, and Ci :t!-.y ! 4 P:1 3: 56 

..... , 

u.s. Rep. John F. Tierney 

--

.. 

202-225'- HAND 

(Full Name) (Daytime Telephone) D&IrIViiPlllU 

Filer Member of the U.S. State: MA .0 OfficerOr Employing Office: A $200 penalty shall 

Status House of Representatives District: 06 Employee be assessed against 

-. 

j 

----_. .- anyone who files 

Report OO.Annual (May 15) Termination Date: more than 30 days Type iO Amendment 0 Termination late. 

PRELIMINARy INFORMATION -- ANSWER i:ACH OF THESE QUESTIONS 

Did you Of your spouse have "eamecf' Income, 4e.g., safaries or fees) of $200 Did you, your spouse, or • dependent child receive any reportable gift in the I. or more from any source In the reporting pertod? Yes No 0 VI. repol1lng period (I ••• , oggnl9"llng moN than $335 and not _rwl .. Yes o No 

exempt)? 

If yes, complete and attach Schedule I. If yes, complete and attach Schedule VI. ._- -DId any Individual or organlzatlon make II dDnation to charity In p8y1ng- Old you, yOUr -spouse. or a dep.,ndent chilO receive any reportable tra"V8I or II. you for a speech. appearance, or...ueJe in the reporting period? Yes 0 No [1;fl VII. reimbursements fortranlln the reporting period (wortll maR than $335 Yes No 0 from one source)? 

If yes, complete and attach Schedule II. If yes, comp_ and attach Schedule VII. 

-- Did you, your spouse, or a dep6nderrt child receIV;;'uneamed"lneome of Old you hOki.,i; reportable position. on or before 'th8date of flUng In the III. more than $200 10 the reporting period or hold any tepOrtable .uset worth Yes No 0 VIII. current calendar year? Yes o No 

more than $1,000 at tho end oItho period? 

If yes, complete and attach Schedule III. If yes, complete and attach Schedule VIII. 

- DId you, your spouae, Or dePendent Chlldpu'rChaae. sell, or exchange any Old youhave any reportable agreementorarrangenient with an outaide 

IV. reportable aaset in a transaction excMdlng $1,000 during the reporting Yes No 0 IX. entity? Yes o No per1od? 

If yes, complete and attach Schedule IV. If yes, com plete and attach IX. .-

Did you, your OIl. dependent child have any lIabilHy (mote V. thon $10,000) during the 'ej)Ortlng period? Ya 0 No Each question in this part must be answered and the appropriate 

_lfYesLCOlllplete and attach schedule attached tor each "Yes" response. 

EXCLUSION OF SPOUSE, DEPENDENT, OR TRUST INFORMATION -- ANSWER EACH OF THESE QUESTIONS 

Trusts-· Details regarding "Qualified Blind Trusls" approved by the Committee on Standards of Official Conduct and certain other "excepted 

trusts" need not be disclosad. Have you excluded from this report details of such a trust benefiting you, your spouse, or dependent 

Exemptlons-- Have you excluded from this report any other assets, "unearned" income, !ranaactions, or of a spouse or dependent child 

because they mae! all three tests for exemption'? Do not answer "yes" unless you have first consulted with the Committee on 

Standards of Offleial ConducL 

Yes 0 

Yes 0 Noli{] 

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SCHEDULE I-EARNED INCOME J Name U.S. Rep_ John F. Tierney 

Ust the source, type. and amount of earned income from any source (other than the filer's current employment by the U.S. Government) totaling $200 or 

during the preceding calendar year. For a spouse, list the source and amount of any honoraria; list only the source for other spouse earned income exc

$1,000. 

Source I Type I Amount 

Tierney Designs I Spouse Salary N/A 

! 

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SCHEDULE III - ASSETS AND "UNEARNED" INCOME I NUS R J h F r ame .. ep. 0 n _ lemey 

BLOCK A BLOCKB BLOCKC 

Asset and/or Income Source Year-End Type of Income 

Identify (a) each asset held for investment or production of income with Value of Asset Check all columns that 

a fair market 'Ialue exceeding $1,000 at the end oftha reporting period. apply. For retirement 

and any other assets or sources of Income which generated more at close of reporting plans or accounts that do 

than $200 In "unearned" income during the year. For rental property or year. If you use a not allow you to choose 

land. provide a complete address. Provide full names of stocks and valuation method other specific Investments. you 

mutual funds (do not use ticker symbols). For a1IIRAs and other than fair market value, may write "NA", For all 

retirement plans (such as 401(k) plans) that are self directed (I.e •• plans pi .... specify the other assets Including all 

in wtsich yOY have the power, even jf not exercised. to select the specific method used. If an IRAs, indicate the type of investments), provide the value and income infonnation on each asset asset was sold and is Income by checking the 

In the account that exeeeds the reporting threshold. For retirement plans Included only because appropriate box below. 

that are not "If--directed. narne the Institution holding the account and It Is generated Income, Dividends and Interest. 

its value at the end of the reporting period, For an active business tllat is the value should be even if reinvested, should 

not publicly traded, state the name of the business, the nature of its "None," be listed as Inc;ome. 

acUvlties. and Its geographic location in Block A. For addltlonal Check "None" if asset did 

InformaUon, see the instruction booklet. not generate any income 

during the calendar year. 

Exclude: Your personal resldence(s) (uniess there is rental income); any 

debt owed to you by your spouse, or by your or your spouse's child. 

parent or sibling; any deposits totaling $5,000 or 18$$ In personal 

savings accounts; any financiallnlerest in or income derived from U.S. 

Government retirement programs. 

If you so choose. you may Indicate that an asset or Income source is 

that of your spouse (SP) or dependent child (DC) or is jointly held (JT), In 

the optional column on the far left. 

Bank Deposit Prog. - Smith $1,001 - $15,000 INTEREST 

Barney 

, --

JT Cisco Systems $1,001 -$15,000 None 

JT Disney Co. Walt $1,001 - $15,000 DIVIDENDS 

--- -- .. ---

Eastern Savings Bank $15,001 - INTEREST 

$50,000 

-- -

JT Federated Capital Reserves $250,001 - INTEREST 

$500,000 

JT Hewlett Packard $1,001-$15,000' DIVIDENDS 

, ; 1 , ! 

1 

I 

BLOCK 0 

Amount of Income Tra

For retirement plans or Indi

accounts that do not anow had 

you to c::hoose specific (P), 

investments, you may write 8xc

"NA" for income, For all eXce

other assets. including ail $1,0

IRAs, indicate the category repo

of income by checking the appropriate box below. 

Dividends and interest. even 

if reinvested. should be 

listed as income. Check 

"None" if no income was 

earned or generated. 

$1 - $200 

NONE 

, 

$1 - $200 $1 - $200 

$201 - $1,000 , 

---

$1 - $200 , 

i 

i 

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SCHEDULE III - ASSETS AND "UNEARNED" INCOME I .. 

___ "ro ..... __ 

JT i MA State Cons Lns I, $15,001 - ilNTEREST 

$50,000 

JT I Nike Class B $15,001 - I DIVIDENDS 

$50,000 

I ResolutionT7usl None i None 

Strips-Tint-US Treasury $1,001 - $15,000 INTEREST 

Talk Realty Trust (1/4 interest) 

1--' 

I $100,001 - RENT 

13 Washington St., Salem, MA $250,000 

JT I Time Warner Inc I $1,001 - $15,000 DIVIDENDS 

JT . Verizon Communications , $15,001 -

: $50,000 

, DIVIDENDS 

Western Asset Government $50,001 - INTEREST 

Money Market Fund Class A : $100,000 

Wright Patman F,C.U. $15,001 - INTEREST 

$50,000 

I $1,001 - $2,500 

I $201 - $1 ,000 

I 

i 

NONE 

' $201 - $1,000 

i $5,001 - $15,000 

i $1 - $200 

I 

$201 - $1,000 E 

$2,501 - $5,000 

. $201 - $1,000 

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SCHEDULE IV - TRANSACTIONS I Name U.S. Rep. John F. Tierney , 

i 

Report any purchase, sate. or exchange by you, your spouse, or dependent child during the reporting year of any real property, stocks. bonds, commodi

or other securities when the amount of the transaction exceeded $1,000. Include transactions that resulted In a loss. Provide a brief description of any 

transaction. Do not report a transaction between you, your spouse, or your dependent child. orthe purchase or 8ale of your personal residence. unless 

out. If only a portion of an asset is sold. please so Indicate (i.e., "partial sale"). See example below. 

SP, Capital 

DC, Type of Gain In Excess 

JT Asset Transaction of $2001 Date Amount of Tran

, Bank Deposit Program - Smith Barney P ,N/A 6111/09 $1,001 - $15,000 I 

---'I --- --" "--- \ 

JT I Federated Capital Reserves \S N/A monthly '$15,001 - $50,00

._-- 

; Legg Mason Partners All Cap Fund Class A S iN/A 6111/09 i $1 ,001 - $15,000 , (converted 10 Bank Deposit Program) , I 

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SCHEDULE VII - TRAVEL PAYMENTS AND REIMBURSEMENTS I Name U.S Rep. John F. Tierney 

Identify the source .nd list travel itinerary, dates, and "atu ... of expenses provided for travel and travel-related expenses totaling more than $335 receive

your spouse, or a dependent child dUring the reporting period. Indicate whether a family member accompanied the traveler at the sponsor's expense, a

amount of time, if any. that was not at the sponsor's expense. Disclosure is required regardless of whether the expenses were reimbursed or paid direc

sponsor. Exclude: Travel-related expenses provided by federal, state. and local governments, or by a foreign govemment required to be separately repo

the Foreign Gifts and Decorations Act (5 U.S.C § 7342); political travel that is required to be reported under the Federal Election Campaign Act; travel pro

$pouse or dependent child that is totally independent of his or her relationship to you. 

Was a Family Day

Point of Departure- Lodging? Food? Member Included? spo

Source Date(s) Destination--Point of Return (YIN) (YIN) (YIN) ex

Aspen Institute Feb. 14-20 Boston - Amman, Jordon - Y Y !Y None 

Congressional Program Boston 
364 


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HAND DELIVERED OLnu::;! 

1ltuitro ~tates 

:Mouse of itqtm;entatiuea 

July 14,2010 

The Honorable Lorraine C. Miller 

Clerk of the House of Representatives 

H-154 U.S. Capitol Building 

Washington, District of Columbia 20515 

Dear Ms. Miller: 

JOHN F. TIERNEY • 

MASSACHUSETTS 

SIXTH D!$TRICT ,- (/) f....;.o ('l 

:- f=> C) 

~§; ~~ :;; ~ E 

~ J ~: en ~ ~'{( -0 ~ 

~; ~ ~ ~V .. - -a ~ 

I write to advise you of an inadvertent error made on my 2009 financial disclosure stat~ment. On"J 

schedule III, under assets and "unearned" income, Verizon Communications should not have 

been marked with an "E" as no transactions involving this asset occurred during calendar year 

2009. 

2238 RAYBURN HOUSE OFFICE BUIL01NG 

WASHINGTON, n.c:. 20515 

11011225·8020 

http://www.ho\lu.gov/tillrnI!V 

COMMITTEES 

EOUCA nON & LABOR 

suec ON HIGHER fOUCA TION. LIFELONG LEARNING AND COMPETiTiVENESS 

suec ON HEALTH, EMPLOYMENT, LABOR AND PENSIONS 

OVERSIGHT 8. GOVERNMENT REFORM suec ON NATIONAL SECUFHTY AND fOREIGN AFFAIRS (CI-IAIRMANf 

SUBC ON DOMESTIC POUCY 

PERMANENT SELECT COMMITTEE ON INTELLIGENCE suec ON OVERSIGHT AND INVESTIGATIONS 

OEMOCRATIC STEERING & POLICY COMMITTEE 17 PEABODY SQUARE 

PEABODV, MA 01950 

($1!:l153f·j569 

LYNN !781J f>9&,7315 

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UNITED STATES HOUSE OF REPRESENTATIVES I FORM A Page 1 016 HAND 

For use by Members. officers. and employees D8JVER

CALENDAR YEAR 2010 FINANCIAL DISCLOSURE STATEMENT 

ATh'E 

U.S. Rep. John F. Tierney 202-22s--. lUIII1"V 

_._-- ------.. (FuIiN.me) (Daytime Telephone) 1.5_ "'_-

Filer I Member of the U.S. State: MA ! 0 Officer Or Employing Office: A $200 penalty shall 

Status -'---1 Employee be assessed against 

--._-

I House of District: 06 

(May 15) 10 Amendment anyone who flies Report Termination Date: more than 30 days o Termination Type late. 

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

PRELIMINARY INFORMATION - ANSWER EACH OF THESE QUESTIONS 

1-

DId you or your spouee have "eamed"' Income (e.g., nil""" orfHs) of $200 DId you, your tpouse, or a dependent chlkl recem any reportable gift In the 

or more from anyHUrce In the reportfng period? Yee No 0 VI. reporting pertod (1.8 •• ___ 09 more 111M $335 ond not __ • Yee o No ex8tpt)? 

_____ 

If yeo. compl8le _ Schedule l _ _ ___ If yeo. compl8le and attach Schedule VI. 

Old any Individual or org.nlZltkm make. doudon to chilrlt1ln Ueu of paying DId you. __ • or. depondentChlld,...."..oy _bIo lnvel or -- .. -- II. you for .. peeeh, ._ .... or _ In the reporting pertod? Yes 0 No VII. roImbUreementa forln ... In the .. porting period (worth more than $33S Ves No 0 from one toul'Cff)? 

If yeo. compl8le and _ch Schedule II. If yeo. compl8le and attach Schedule VII. 

Did ipouM. or. deptndent child rectIve "uneamed"!ftcome-01- ----- - -- Old "'. hold any _bIo pootiiOii. On or boforo the d ... of niiiig In the III. m ... 

_ $200 In the .. porting period or hOld any _b ...... t worth Yes Ii'! No 0 VIII. current calendar year? Ves o No moro _ 51,000 at the ond oftto. periOd? 

If yeo. comp .... and _ch Schedule III. If y .... complete and attach Schedule VIII. 

- ._-- DId you, your spaUH, or deptJndent Child pure .... , .... Of exchange any Dld you hue any reportabte agrMfnentor arrangement with an out.kte 

IV. anet In a tranaaetlon exceeding $1.000 during the reporting Vas No 0 IX ... \tty? Yes 

period? 

!fyes. complete and attach Schedule IV. .- If yeo. and attach Schedule IX. .. Old YOU,Your dependent ehlld have any I1tpCKbIbleiltblftty (morto -- V. then $10.000) durtng ...... porting period? Yes C No Eiilch question In this part must be answered and the appropriate 

Ify .... compl8le and _ Schedule V. schedule attached for each "Yes" response. 

EXCLUSION OF SPOUSE, DEPENDENT, OR TRUST INFORMATION - ANSWER EACH OF THESE QUESTIONS 

Trusts- Details reganllng "Qualified Blind True"'" appro¥ed by the COmml_ on Ethics and cettaln other -excepted _" need not be 

dlscloeed. Have you ... cluded from this "",ort _lis oIlIUCh a Iru$I benefiting you. your spo ..... or depandent child? 

Exemptions- Have you exclu_ from this report any other ........ "uneamed" income. transactions. or liabillti ... 01 a spouse or depandent child 

Yes 0 Noli'! 

because they meet 811th ... _lor exemption? Do not anawer "yeo" unless you have ftlSt consulted with the C<>mm_ on EthiCS. Yes 0 No 

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SCHEDULE I-EARNED INCOME I Name U,S. Rep. John F. Tierney I P

Llst the source, type, and amount of earned income from any (other than the filer'. current employment by the U.S. Government} totaling $200 or 

during the pl'8Cttdlng calendar year. For a spouse,list the source and amount of any honoraria; liat only the source for other spouse earned Income exc

$1.000. 

Source Type Amount 

Tierney Designs Spouse salary N/A 

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I SCHEDULE ame .. ep. 0 n . emey III - ASSETS AND "UNEARNED" INCOME I NUS R J h F Ti 

I BLOCK A BLOCKS BLOCKC 

Asset and/or Income Source Year-End Type of Income 

Identify (a, each auet held for Inve$bnent or production of Income with Value of Asset Cheek aU columns that 

a fair market value exCMdino $1,000 at tne end of the r9porting period, apply. For retirement and (b) any other reportable asset or sources of Income which operated at close of reporting KCOunts that do not allow 

more than $200 in "unearned" Intome during the year. year. If you use. you to ehooae speciflc 

valuaUon method other Investments or that 

Provide complete nam .. of etoc.ks and mutual funda (do not use ticker than fafr market value, generate tax..deferred 

symbol .. } ...... __ Ifythe Income (sueh .. 401(k) 

methodused. Ifan plans or IRAa). you may 

For aU IRM and other retIrenIent P'" (such as <401(k) plans} that are asset was sold and Is ehect the "Non." 

HIf..cJlrected (I.e.,plans In whlch you have the power, avan if not Included onty because column. Dividends. 

exerctsed. to setect the specific. mveslments). provide the valua tor each it fa generated Income. Interest. and capJlat gains, 

asset held In the account that exceeds the reporting thresholds. For the value .hould be even If relnvested. must 

retfrement accounts which are not self-dlrected. provide only the name "None,- be disclosed &Ii Income. 

of the lnetftutlon holding the and Its value at the end of Ihe Check "None" ffthe asset 

reporting period. generated no Income 

dunng the reporting 

For rental otother .... property held for Invastment. 9tovide a complete period. 

add ..... 

For an ownership mterest In a prlvately-hefd business that Is not 

publlcally traded. state the' name of the business. the nature of Its 

adivltin. and tts geographic location in stock A. 

Exclude: Vour personal residence, including second homes and 

hom" (unleA the,. WM rental income during the reporting 

.... "" .. ..n. ........ __ .............. *#_A .... I I ...... .. _""_ ..... "1 .......... 

JT Cisco Systems i $15,001 - None 

$50,000 

._-----------... 

JT Disney Co. Walt $1,001 - DIVIDENDS 

$15,000 

_ 

.. _-

JT Federated Capital Reserves $100,001 - INTEREST 

$250,000 

. _- . -.. .. 

:-. 

__ 

I Hewlett $1,001 - DIVIDENDS $15,000 

----

... 

JT 1 ... C1-' $15,001 - DIVIDENDS 

r-:;:r-. Time Warner Inc .. 

I $50,000 

1$1,001 - DIVIDENDS 

$15,000 

I 

BLOCKD 

Amount of Income Tr

Ind

do not.altow you to choose had 

speeific investments or that (P

generate tax-defemKllnc:ome oxc

Isuch as .cG1(k) plans or exc

IRAI), you may cheek the $1,

"None" column. For all other _n

aSMts. incUeate the category 

of inCOIM by chedUng the 

appropriate box below. 

DiY_do. I""'"", and 

capiWll gains. IfV8n If 

reinvested. must be 

disclOHd as income. Check 

"None" ff no ineome was 

earned or generated, 

$1 - $200 

$1 - $200 

$1 - $200 S(p

$1 -$200 

.. _--- .. t--

$201 - $1,000 

$1 - $200 

i 

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SCHEDULE III • ASSETS AND "UNEARNED" INCOME I Name U.S. Rep. John F. Tierney 

JT I Time Wamer Cable $1 - $1,000 DIVIDENDS 

___ 

L. 

__ 

... . 

.-

JT Verizon Communications $15,001 - DIVIDENDS 

$50,000 

-- ----_ ... -. -_._-

JT Parametric Technology $1,001 - None 

$15,000 

---

JT MA Slate Cons Lns None INTEREST 

- ---

-

Bank deposit Prog. - Smith $1,001 - INTEREST 

Barney $15,000 

-- -¥. ._ .. 

Eastern Savings Bank $15,001 - INTEREST 

$50,000 

Resolution Trust None None 

----

.. 

Western Asset Government $50,001 - INTEREST 

_. 

Money Market Fund Class A $100,000 

__ 

. ". .--

Wright Patman F.C.U. $15,001 - INTEREST 

$50,000 

_.- .-

Strips-Tint-US Treasury $1,001 - INTEREST 

$15,000 

Talk Really Trust (1/4 interest) $100,001 - RENT 

133 Washington St., Salem, MA $250,000 

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

I 1

$1 - $200 E 

.. 

$201 - $1,000 

I 

-----

NONE 

$201 - $1,000 S 

$1 - $200 

j $1-$200 I ·2-

JNONE 

I :;,":000\ 

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SCHEDULE IV - TRANSACTIONS _1 Name U.S. Rep. John F. Tierney I 

Report any purchase, sale. or exchange by you, your spouse, or dependent child during the reporting year of any real property. stocks. bonds, commodi

or other securities when the amount of the transaction exceeded $1,000. Include- transactions that resulted In a 1088. provide a brief description of any 

tranaactJon. Do not report a transaction between you, your spouse, or your dependent child, or the purchase or sale of your personal residence, unle •• 

out. If only a portion of an asset Is sold, please 80 Indicate (I •••• "partial &ale",. See example below. 

SP, Capital 

DC, Type of Gain in Exces. 

JT Asset Transaction of $2001 Date Amount of TranJT I Federated Capital Reserves S(part) N/A 01-19-10 $100,001 - $250,

12-10-10 

'-_ .. ._. 

JT MA state Cons Lns S N/A 02-01-10 $15,001 - $50,00

--

_ 

.. ,.- '"--

JT Time Warner Cable E N/A 03-15-10 $1,001 - $15,000 

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SCHEDULE VII- TRAVEL PAYMENTS AND REIMBURSEMENTS IN 1I S R J h F r ame .. ep. 0 n . lemay I 

Identify the source and lis' travel Itinerary, dates, and nature of expenses provided for travel and travel.....alated expenses totaling more than $335 receive

,YOur spouse, or a dependent child during the reporting period. Indicate whether a family member accompanied the traveler at the sponBor'. expense. a

of time, If any. that was not at the sponsor's expense. Oisclosure Is required regardlns of whether the expenses were reimbursed or paid direc

lsponaor. Exclude: Travel-related expenses provided by federal, state. and local governments, or by a foreign government .. qulred to be separately repo

tho Foreign Gifts and Decorations Act (5 U.S.C § 7342); political travel that Is required 10 be reported under the Federal Election Campaign Act, travel pr

spouse or dependent child that Is totally Independent of his or her relationship to you. 

Was a Family Day

Point of Departure- Lodging? Food? Member Included? spo

Source Date(s) Destination-Point of Return (YIN) (YIN) (YIN) ex

Aspen Institute I May 31 - Boston-Tunis, Tunisia - Y Y Y None 

Congressional Program I June 6 Boston 

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LEGISLATIVE: RESOURCE: co

UNITED STATES HOUSE OF REPRESENTATIVES I FORM A Pagel 017 I.UlU1AY IS PM 5:; 

CALENDAR YEAR 2011 FINANCIAL DISCLOSURE STATEMENT For use by Members, officers, and employees 

HAND 

. 

-

u.s. Rep. John F. Tierney 

.. ". - DELIVERED 

(Full Name) (Daytime Telephone) (Office Use Only) 

Filer Member of the U.S. State: MA .1 0 Officer Or Employing Office: A $200 penalty shall 

Status House of Representative District: 06 .. Employee be assessed against 

.. I l Termination anyone who files Report Termination Date: more than 30 days Type Annual (May 15) i 0 Amendment late. 

PRELIMINARY INFORMATION - ANSWER EACH OF THESE QUESTIONS 

I. 

Old you or your spouse have -lNmed-'ncome (e.g .• sadaries or fees) of $200 I! Old you, _spouse. or ..... In _ reportable gilt In the or more from any source in the reporting period? Yes Ii!! No 0 VI. IlIpol1lng period (I .•.• aggregating .......... n $350 and 110'_ Yes o No !¥'I examp')? 

If yes, complete and attach Schedule I. : If yes, complete and attach Schedule VI. 

II. 

Old any IndMduat Of organization make a donation to charity In lieu of paying -- -..• Old you. your spouse, or a ct8Pendent chIkI recefve any reportable travel or you for. spucb. __ or __ In the reporting period? Yes 0 No VII. relmburaemonls for ""velln the _111"11 period t-more than $350 Yes No 0 from one soun:::a}? 

If yes. complete and attach Schedule II. If yes, complete and attach Sehedule VII. 

Old YOU. your spouse, or a dependent child receive -untamed-Income 01------ .. ----_ .. - Old you hokf any reportable posttlona on or bIfor. the date of filing In 1he 

III. more than $200 in the reporting period or hold any reportable asset worth Yes No 0 VIII. current calendar year? Yes o No till mor.then $1.000111'''''_ of the period? 

If yes. complete and attach Schedule III. If yes. complete and attach Schedule VIII. 

... 

Did you. your spouse. or dependent child purchHe. sen. Of exchange any Old yOu have any reportable ag ... ment or arrangement with an outside IV. IlIportable .... 1 In • "" ..... Ion exceeding $1.000 during III. repol1lng Yes Ii!! No 0 IX. emily? Yes o No period? 

If yes. complete and attach Schedule IV. If yes, complete and attach Schedule IX. 

Old you, your spouse. Of a depemklnt child have any Alportabklllablllty (more V • than $10,000) durIng the repol1lng period? Yes NO 0 Each question in this part must be answered and the appropriate 

If yes. v. schedule attached for each "Yes" response . 

EXCLUSION OF SPOUSE, DEPENDENT, OR TRUST INFORMATION - ANSWER EACH OF THESE QUESTIONS 

Trusts- Details regarding "Qualified Blind Truets" approved by the Committee on Ethics and certain other "excepted truata· need nol be 

disclosed. Have you excluded from this report details of such a trust benefiting you, your spouse, or dependent child? 

Exemptions- Have you excluded from this report any other assets, ·unearned" Income, transactions, or liabilities of a spouse or dependent child 

Yes 0 Notill 

because they meet all three tests for exemption? Do nol answer ·ws· unless you have first consulted with the Committee on Ethics. Yes 0 No till 

Insert graphic folio 378 82732.362pwalker on DSK7TPTVN1PROD with REPORTS

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SCHEDULEI·EARNEDINCOME I Name U.S. Rep. John F. Tierney I 

List Ute source, type. and amount of earned Income from any source (other than the flier's current employment by the U.S. Government) totaling $200 o

during the preceding calendar year. For a spoUBe,list the source and amount of any honoraria; list only the source for other spouse earned income exc

$1,000. 

Source Type Amount 

ADP Inc. Spouse's Salary <$8,000.00 

Insert graphic folio 379 82732.363pwalker on DSK7TPTVN1PROD with REPORTS

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'" 

SCHEDULE III - ASSETS AND "UNEARNED" INCOME I NUS R J h F Ti arne .. ep. 0 n . lemey 

BLOCK A BLOCKB BLOCKe 

Asset and/or Income Source Year-End Type of Income 

rdenufy <a} each asset held for investment or production of Income with 8 fair marbt Value of Asset Chec:k all columns that apply. value exGeeding $1,000 at the end of the reporting: period. and (bl any other For r.ttr.m.nt accounta that 

reportable asset or SotlfCes of Income which generated more than $200 In At close of reporllng year. do not allow you to choose "unearned- Income durtl'tg the year. n you use .. valudon specific Investments or thai 

methOd othIIr tMn fait genetate tax-dtferred tncome 

Provide complete names of stoc:ks and mutual funds (do not us. ticor symbols.) marketvalue.pIease (such ... 401(k) plaR$ or IRAs). 

spedfythltmethocl used. you may check the -None" 

For aJilRAs and other retirement plans (such ItS 401(k) plans) thai are self.GR"eCted H an ..... was sold and Is column. Dividends, IrUrHt. 

(I..e.,pfans In Whlcllyov havethe PQ'I¥$t, even If not enrdsed, to seleet the Included only bocaUM H 55 _capttalgall'I$,.evenlf investments). provide the value for each asset held in the :aa:otm that exCMds the generated Income, the Rlnvested, must be dlsdosed 

ttj)Ortlng thresholds. For retirement accounts which at. not seff.dlteeted, provkte vallIa should be "None." as Income. ChKk -None-" 

only the name of tM Institution hokIlnQ: the: account and Its value at the .M of !he ttItt ... 

reporting period. during the nportfng period. 

For rental or otfler real ptOfMIrty held for investment, prwIde a complete address. 

For an ownership Interest in • priYat&ly.held bu$ineM; thai is not JM,Ibfically traded, 

state the name of the business, the nabJre of lt$ ..wltles. and It$ geographic 

iocationil'lBJockA. 

Exdude: Your personal residence, including se<:ond ttomes and vacation homes 

(unless there was. nmtaIlncome durlng the reporting pet1od); any deposft$ totaltrlg 

$5,000 or less in a personal checking or saYing acc:ountf,; and anyflnancllllinttrest 

In. or income derived from, a federal retirement program, Including the Thrift 

Savings Plan. 

If you so el\oose, you may Indicate that an suet or income $OUI'Ce is that of your 

SPOUM (SP) or c:hild {DC). or Is jointly held with your spouse (JT}.1n tNt 

optional column on the far left. 

JT 11025 FirstSt.SE#414 , $250,001 - _None I Washington, DC $500,000 

JT 21 Settlers Way, Salem, MA $500,001 - None 

$1,000,000 

---

-

Bank Deposit Program - MS $15,001 - INTEREST 

, Citi-BankNA $50,000 

------

JT Cisco Systems $1,001 - DIVIDENDS 

$15,000 

JT Disney Co. Walt I None DIVIDENDS/CAPI TAL GAINS 

----

Eastem Savings Bank I $15,001 - INTEREST 

$50,000 

I 

BLOCK 0 

Amount of Income Tr

For fell:rement accounts that do indi

not.alfowyou loc:hooM apctCIfIc purc

Inwtatmants orthatfPllll ..... tax- sale

deferred income (SUCh as 401(k) exct

plans or IRAs), you may d1eck the exce

"NO",," column. For all other repc

.uset&,lndk:atethecategoryol 

Income by checking the 

appfOpI1ateboxbefoW. 

Dividends, Interest,. and capitat 

ga!ns.even must be disclosed as Incorn.. Check 

"Nona-If no tnconHI was aamed 

" ..... 

-

NONE NONE 

$1 - $200 

._ ... _--

$201 - $1 ,000 

I 

$1,001 - $2,500 S 

.. " 

I $1 - $200 

I 

Insert graphic folio 380 82732.364pwalker on DSK7TPTVN1PROD with REPORTS

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SCHEDULE III • ASSETS AND "UNEARNED" INCOME I NUS R J h F Ti ame .. ep. 0 n . lemey J 

JT Nike Class B $15,001 • DIVIDENDS/CAPlj $5,001 - $15,000 S(p

$50,000 TAL GAINS 

-

---

---" _._._--_.-------. -----_ .. -._----- -" 

JT , Schwab One $50,001 - INTEREST E 

$100,000 

I Talk Realty Trust (1/4 

$100,001 - RENT $5,001 - $15,000 

133 Washington Street, Salem, $250,000 i MA 

.... _- H15,001- -- JT I Verizon Communications DIVIDENDS $50,000 1 Western , $50,001 - INTEREST 

Market Fund Class A --- -i $100,000 - -- r-----------r- ---

I Wright Patman F.C.U. $15,001· INTEREST $1 - $200 

I I i $50,000 

Insert graphic folio 381 82732.365pwalker on DSK7TPTVN1PROD with REPORTS

.. 

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I .... 

CO 

SCHEDULE IV - TRANSACTIONS Name U.S. Rep. JoIln F. Tierney 

Report any purchase. sale, or exchange by you, your spouse, or dependent child during the reporting year of any real property. ,tocka. bOnds. commod

or other securities when the amount of the transaction exceeded $1,000. Include transactions that resulted in a loss. Provide a brief description of any 

psaction. Do not report a transaction between you, your spouse, or your dependent child, or the purchase or sale of your personal residence. unless 

lOUt. If only a portion of an asset Is sold, please so indicate (i.e., "partial sale"). See example below. 

SP, 

DC, 

JT 

JT 

Asset 

Disney Co. Walt S 

E 

Type of 

Transaction 

JT I Federated Capital Reserves 

I "'! """,Po"'" - U - Is ____ _ 

JT I Nike Class B I S(part) 

capital 

Gain In 

Exceas 

of $2001 

Yes 

N/A 

No 

Date 

12-28-11 

6-22-11 

12-26-11 12-28-11 

Amount of Tran

$1,001 - $15,000 

$100,001 - $250

$1,001 - $15,000 

.. _-+. ------

$1,001 - $15,000 

JT .... (arametncTeChnOlogy .. _ ... _ .. _.---.e--. INO 112-28-11 1$1,001-$15,000 

JT Time Warner Cable S No 12-28-11 $1,001 - $15,000 

Inc No 12-28-11 $1,001 - $15,000 

Insert graphic folio 382 82732.366pwalker on DSK7TPTVN1PROD with REPORTS

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-

SCHEDULE V - LIABILITIES r Name U.S. Rep. John F. Tierney I 

Report liabilities of over $1 0,000 owed to anyone creditor at any time during the reporting period by you, your spouse, or dependent child. Mark the hig

amount owed during the year. Exctude: Any mortgage on your personal residence (unless all or part of It Is rented out)j loans secured by automobiles, 

:furniture, or appliances; and liabilities owed to a spouse, or the child. parent. or sibling of you or your spouse. Report -revolving charge accounts" (I.e.

cards) only If the balance at the close of the preceding calendar year exceeded $10,000. NOTE: Pending legislation may require Mamba,. to report mort

personal residences. 

SP, Date 

DC, Liability 

JT Creditor Incurred Type of Liability Amount of liabilJT National Grand Bank of Marblehead, MA Sept 1997 Mortgage on 21 Settlers Way, $100,001 - $250,00

Salem, MA 

-._------

JT Met Life Home Loans Jan 2010 Mortgage in #414, 1025 First $100,001 - $250,00

I St.SE, Washington, DC 

Insert graphic folio 383 82732.367pwalker on DSK7TPTVN1PROD with REPORTS

.... 

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( ... 

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SCHEDULE VII- TRAVEL PAYMENTS AND REIMBURSEMENTS IN us R J h F Ti ame .. ep. 0 n . lamey I 

Identify the source and list travel itinerary, dates. and nature of expenses; provided for travel and travel...-elaled expenses totaling more than $350 receive

iYour spouse, or a dependent child during the reporting period. Indicate whether a family member accompanied the traveler at the sponsor"s expense, a

amount of time, If any, that was not at the sponsor's expense. Disclosure is required regardless of whether the expenses were reimbursed or paid direc

sponsor. Exclude: Travel .... elated expenses provided by federal, state, and local governments. or by a foreign government required to be uparately repo

he Foreign Gifts and Decorations Ac:t (5 U.S.C § 1342); political travel that Is requirsd to be reported under the Federal Election Campaign Ac:t; travel pr

spouse or dependent child that is totally Independent of his or her relationship to you. 

Source 

( 

Energy Security: Policy 

Consideration for the New 

Date(s) 

Feb. 22-28 

Congress_" ____ _ 

-

"Nuclear Challenges for 

the U.S. : Coping with 

Change in the Global 

Nuclear Order" 

Point of DepartureDestination-Point of Return 

Boston - San Juan. Puerto 

Rico - Boston 

I - I Boston 

The Aspen Institute ·-r Sep. 24-30 fBoston - Barcelona. Spain-

"Policy Challenges in the Boston 

Muslim World" 

Was a Family Day

Lodging? Food? Member Included? spo

(YIN) (YIN) (YIN) ex

I Y Y N None 

I 

I Y I yiN I None 

I y Y I Non

BarcBus 

Excu

$50.
378 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 384 82732.368

EXHIBIT 14 

13-1064 0350 
379 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 385 82732.369

BankofAmerica .-. 

-?" 

Capture Date: 20070109 sequence II: 1270290235 

ROBERT H. EREMlAN P.o. BOX 3195 

BEVERLY. MA 01915 

P~OUNT C2u tLv4£x& a.ad Z 

BANK Of AMERICA 

-'n~T~c£ N~ J:.!.l... II, 

1540 

DOllARS, 

•• •••• u. I: ••••••• ,: ___ Oq:;:;.· 

~'---. 

No Electronic Endorsements Found 

No Payee Endorsements Found 

Page 153 of 324 Print Req.II2008020S003751 

60~#Jana.L 

Tue Feb 12 03:29:10 CST 2008 

10-10159-PBS (D.MAL0434 

13-1064_0351 
380 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 386 82732.370

Bank of America ".,.. 

~ 

Capture Date: 20070208 Sequence #: 0370311433 

ROBERT H. EREMlAN 

p"o. eOX3195 

eevERtY~ MA 01915 

"'._-ij' .:_ ... ,: 

i 

I 

·;l ) 

~.==....-==:=::;.,. ·f 

No Electronic Endorsements Found 

No payee Endorsements Found 

-.., . .wPage 169 of 324 Print Req.#20080208003751 

@!l!l@ii1@'iHHH'Jil 

02-07-07 - "" 

034308874 

1558 

C1i!:C1( AMOUNT 

1t7"n.-

tiHiE'~--;:::-

1 

I 

Tue Feb 1203:31:25 CST 2008 

10-10159-PBS (D.MAL0435 

13-1064_0352 
381 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 387 82732.371

BankofAmerica -., 

~ 

Capture Date: 20070313 Sequence #: 1270863909 

ROBERT H. EREMIAN P.o. BOX3'll5 

BEVERLY, MA .,915 1573 

P:~OUNT GI.' ~()I(a ,L (',U'K:/ ~ GRtl AMT elSe Cl1ECI< AMOUNT 

S\/()o().-1 I ~~~UJ~~~-LLW~~--~3L~~~~~------i:::::~~~PM~N::::j ~;~~=. 

.. --. ... :_--

No Electroni.c Endorsements Found 

No Payee Endorsements Found 

~u?1x.~.~ . AlII""""'''''''''''''' ([ 

•••• 1I00"l33.· ~ 

6I11CH!€HI@@@@@ 03-10-07 

035713386 

~o~~J~~~~J \ ~tlI'::r,r«.~~~ 

-~~_!!.~~!.I~-

Page 185 of 324 Print Req.#20080208003751 Tue Feb 12 03:33:33 CST 2008 

10-10159-PBS (D.MAL0436 

13-1064_0353 
382 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 388 82732.372

BankofAmerica __ 

..... Capture Date: 20070410 Sequence #: 0770711158 

ROBERT H. EREMIAN 

p.O.eOX3195 

BEVERLY. MA 01915 

BAN'" Of AMERICA 

.·._"'i~ .: 

___ .,: 

0" 

;;"~IFA/fJ!ICA..JilIlAL­ jl . 01_1lS G!476 &! l't3 ii ... · ... W1M7 

~ "£(17("17 i 1152 

I ' . H/ ,,:1 - El> ' n! _--====.-1 

No Electronic Endorsements Found 

No Payee Endorsements Found 

Page 194 of 324 Print Req.#20080208003751 

15U 

Tue Feb 1203:34:48 CST 2008 

10-10159-PBS (D.MAL0437 

13-1064_0354 
383 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 389 82732.373

BankofAmerica ".,.. 

..... Capture Date: 20070503 Sequence #: 0970981318 

ROBERT H. EREMIAN P.o. 8OX31SS 

BEVERLY. MA 81.915 

P:z.OUNT 

o ;~ 

~1i: 

~ I!: '"I:'t:,~:,~'"";\l<'l.!~"'''l~~o :z: :'. 

~ ,:?,-"-,-,.,-",,., 

~;~ i01t:~1 

~ ; .: B> ,,! o ' ___ .. __ ~'":=. 'C 

No Electronic Endorsements Found 

No Payee Endorsements Found 

Page 205 of 324 Plin! Req.#20080208003751 

Jo!L ". 

1596 

~.---., 

Tue Feb 12 03:36:09 CST 2008 

10-10159-PBS (D.MAL0438 

13.1064_0355 
384 


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BankofAmerk:a -. 

~ 

capture Date: 20070608 Sequence #: 0870977071 

ROBERT H. EREMIAN P.o. BOX 3195 

BEVERLY. MA 01915 

8I.NK OF AMERICA 

11· •••• ,.1: •••••• ,: ••••• 0'13:1.· 

No Electroni.c Endorsetllel'l-ts Found 

No Payee Endorsements round 

Page 223 of 324 Print Req.'20080208003751 

, 

1611 

,,----

Tue Feb 1203:38:03 CST 2008 

10-10159-PBS (D.MAL0439 

13-1064_0356 
385 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 391 82732.375

Bank of America .-. 

~ 

Capture Date: 20070711 Sequence 'It: 1370334326 

ROBERT H. EREMIAN 

..••.. ', .. : ..... 

No E~ectronic Endorsements Found 

No Paye:e Endorsements Found 

Page 240 of 324 Print Req.#200a0208003751 

J:lL 

'10 

1628 

Tue Feb 1203:39:49 CST 2008 

10-10159-PBS (D.MAL0440 

13·1064_0357 
386 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 392 82732.376

BankofAmerica -. 

~ 

Capture Date: 20070808 Sequence fl.: 1170619809 

ROBERT H. EREMIAN P,Q. BOX3195 

BEVERLY. MA 01915 

lANK OF AMERICA 

•••••• u. I: •••••• 

'''---,'.,..'.'-7 , .• 

I" " 

No Electronid Endoraements Found 

No Payee Endorsements Found 

•••• O'B3.· 

Page 253 of 324 Print Req.#200&0208003751 

1641 

DOUAASI 

.......... , . 

Tue Feb 1203:41:14 CST 2008 

10-10159-PBS (D.MAL0441 

13-1064_0358 
387 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 393 82732.377

Bank of America ,..,. 

-~ 

Capture Date: 20070907 Sequenee #: 0870934624 

P~OU"T 

ROBERT H. EREMIAN p,o.eOX3\95 

BEVERlY. MA 31915 1651 

CHECI( AMOUNT 

~1ffJ-J...1Y,.2L.L:::..L'J..lf;~-'1~£o!1.JZd'L-1::~~!fuc==l$1 io:~;z;;J '. i 

BANK Of AMERICA 

M~rz~~_~ ~IZEO.$IGH:A'I'UN! d ,·· •••• 11 •• :: •••••• ,: 

No Electronic Endorsement.s round 

No Payee Endorsements Found 

••• 1100932'-

Page 262 of 324 Print Req.#20080208003751 

,., .,' 

TueFeb 1203:42:11 CST 2008 

10-10159-PBS (D.MAL0442 

13-1064_0359 
388 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 394 82732.378

BankofAmerica .-

~ 

Capture Date: 20071002 Sequeneelt 0870415159 

ROBERT H. EREMlAN P.O. BOX 3195 

BEVERlY, MA 01915 

lANK OF AMEJUCA 

........ ". ·:· •••••• 1 ••••• 0'1'13"· 

'. No Electronic Endorsements Found 

No Payee Endorsements Found 

88\'.iY~p:,'~ Bank Be,."rly,MA 

ocr 01 Z001 

."-

, .,.. 

Page 275 of 324 Print Roq.1I20080208003751 

1662 

~.--

Tue Feb 12 03:43:37 CST 200S 

10·10159·PBS (D.MAL0443 

13.1064_0360 
389 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 395 82732.379

BankofAmerica .-, 

...... Capture Date: 20071102 Sequence #: 1992785599 

ROBERT H. EREMIAN P.O. BOX 3195 

BEVERLY. MA 01915 

N· •••• ". I: •••••• 

El.ectroni.c Endorsements 

Date Sequence Bank # aOFD 

20071101 012011683 11301198 y 

20071101 012011683 111310346 N 

20071102 001992785599 111310346 N 

No Payee Endorsements Found 

TRN 

Y 

N 

N 

Page 289 of 324 Print Req.#20080208003751 

J:.!L. 110 

1678 

------Oi'iOuARSf 

llankN .... 

EASTERN BANK 

BANK OF AMERtCA, NA 

BANK OF AMERICA, NA. 

CHECK AMOUNT 

.,,_ ... 

-

Tue Feb 12 03:45:05 CST 2008 

10-10159-PBS (D.MAL0444 

13-1064_0361 
390 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 396 82732.380

BankofAmerica ~ 

Capture Date: 20071204 Sequence #: 0770918878 

ROBERT H. EREMIAN P.o. BOX 3195 

BEVERLY. MA 01915 

P~aUNT au. 'tf.noM.tf.<MCI ~ 

-~ 

--no1686 

DoUAiiii 6ft S AMT. lSC CHECK AMOUNT 

~ru~~-L~~~UU~~~~~==~~~~$I 1000.-1 

SANK OF AMENCA £2k.~~ tt· •••• ,· I: •••••• ': ••••• 0 q 3. iu' 

No Electronic Endorsements Found 

No Payee Endorsements Found 

Page 299 of 324 Print Req.#2008020~00375 1 

;t". ___ .. -

Tue Feb 12 03:46:10 CST 2008 

10-10159·PBS (D.MAL0445 

13-1064_0362 
391 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 397 82732.381

$1,000.00 

~9'J3 Bal\k"~er: __ 

Sequence N\l!!ll:Ier, 1l71HlI02H 

C¥ptU(1'l Date: 01/0)/2006 

Che.ck NlPI\bet: 16n 

ROBERT H. EREMIAN 

'I'I'.:.:'~.!'hr-"L., ""'u ,.,.I1Ii#""l'!I.ri tK\i'tIJ t ..::> 

007e491)21~' ikmlOIM' 

• .;,~=~==a""l:!t ... ~~r-u 

~--. r 

10-10159-PBS (D.MAL0446 

13-1064_0363 
392 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 398 82732.382

$1,000,00 

-.933-

aankNuml:>er:_ 

ROBERT H. EREMlAN '.Q.IICX31S5 

8M11tT, "" I!ltlS 

Seq\lence NU,I!!l:)er: 12.10626911 

Capture OJl.t.!:; 02l0V20c:a 

CMckllu:rJ:>eJ;: 1716 

I 'W~F: I N° 

p~ at tt"M«q! 4ft1 % ~ 

1716 

10-10159-PBS (D.MAL0447 

13.1064_o364 
393 


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.1I.'l>QUflt: 

1\.CCO;>flt: 

$l,OCO.Qfi 

_Q~33 

-

ROBERT H. EREMIAt~ 

',O,Sex31~ 

IIlVmY, fAA \llflS 

U7t169B071 2'_,,=, 131 " 

sequence ~umbf:r: 11706~eOi l 

capt\lr~ Oate: C~/05noOS 

cMe):riUll\ber: 112(1; 

DouAAs, 

1728 

10-l0159-PBS (D.MAL0448 

13-1064_0365 
394 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 400 82732.384

$1. QOO.OO 

Account: _0933 

BankNut:it>er,_ 

ROBERT H. EREMIAN 1".G.BOXlIM 

tlMRl.V.II!AOI1lS 

S¢qllence N......t>er: 1l1002,91S 

Captl..lre Oate: 04/09/.008 

Checx 1'W1'.!:le~' 1 i~O 

I ""'""'r"" I N~ 

..!!-

II?! ~$! 

+ 

1740 

10-10159-PBS (D.MAL0449 

13-1064_0366 
395 


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Amount: $1,QOOo.OO 

Account: ~93J 

Bank Numb!!.c: .-: 

ROBERT H. EREMIAN 

Sequence Number: 12708'93523 

C-Ipt.vre One: 05/0812008 

Check NUJtIbter: 1735 

1755 

10-10159-PBS (D.MAL0450 

13-1064_0367 
396 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 402 82732.386

ROBERT H. EREMIAN I'.O,IIOXll95 

IIMRl.r,MAO\i\5 

Sl!'quenCe Nl,U'I\l:ler: 1110H026~ 

Capt\l:re Oa~e; 06/Q4120:B 

Check Ii\UTber' 1?'10 

I '~T: I N~ 1770 * 

10-10159-PBS (D.MAL0451 

13-1064_0368 
397 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 403 82732.387

Amount; 

Aeco~nt: 

Bank Nwr.ber: 

ROBERT H. EREMlAN 

P,O, BOX3!!15 

8MRl.Y, MA 01$11 

P::'.UltT /b. -:-/£vcrtari 

Sequence Number: 

Capture Date ~ 

Chec;' Nu..'tbe.c! 

141096S18t 

07/06/200, 

1791 

I ~Mm~Cr~~ 

tud~ 

..J:lL .11 

1791 

CMEtl_ 

~~.!.L/iL.L;....LU&l(!-.I.f'£""4:l~Z<:---t=~if!lE:=j$1 I ~;i:) 

~~, 

10-10159-PBS (D.MAL0452 

13-1064_0369 
398 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 404 82732.388

A.mO\Jtlt: $l~OOO.OO 

Acc-o .. nt: ~933 

Sank: Number: ___ 

s.equllt~e:e NUlIIber: 

captu.te Date: 

Ch~ck; N\J.ttIber: 

ROBERT H. EREMIAN P.O.BOX31G! 

11'-" I: ••••• ,: ••••• O'B~.· 

Electronic £ndo::~ementlJ 

Oat" Sequ~nc. 

AUG 092008 

Teller #216 

~~.i.l1.ijijJo:92oli:)~~u::: 

. 1 ; ~ 

ireller#21S''''' 

e ... nk I BOrn Sank Natne 

2992704663 

06/1212008 

1801 

-"1L --.-..-

1807 

08/1212008 00299210'663 

08/11/2008 0120293H 

08/1112008 012029344 

111310J46 N SAAR or AMERICA, NA 

01130179:8 Y EASttlW BANK 

111310346 N SWK or AM.:eRtCA. NA 

10-10159-PBS (D.MAL0453 

13-1064_0370 
399 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 405 82732.389

1ImoUnt;: $1,000.00 

~count: _0933 Bank Number: __ 

ROBERT H. EREMlAN '.0. SOX 3\t5 

tI(VERi'f. 1M 0\;1$ 

Seq\lel1Ce N~t': 

Capture Date: 

Check Number: 

;.-.,,--- •••• !OH3 .. 

127()240310 

09:/04/2008 

1816 

1816 

10-10159-PBS (D.MAL0454 

13.1064_0371 
400 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 406 82732.390

ROBERT H. EREMtAN ',(I,80UIt5 

8f\"£Rl.Y,MAOoI'IS 

Sequen('e !I."'IIib .. [> l21019~165 

Capture P<l-te; lO/09/l0ca 

10-101S9-PBS (D.MAL0455 

13-1064_0372 
401 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 407 82732.391

~t; $1,000.00 

AeoOUnt: ~!3) 

S/lr,kNum.ber:_ 

Sequence Nuroher, 121Qil022~5 

c.-pt:.u:e Ollte: 11/131200& 

Checll Numbe:r:: :838 

10-10159-PBS (D.MAL0456 

13-1064_0373 
402 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 408 82732.392

Amaunt: $l~ 000.00 

AccQlJnt: ~933 

Sank Num.be.:: ~ 

ROBERT H. EREMlAN P.O. SOXll1S 

tMlllY. M4 oms 

Sequence Number: 1210109804-

Capture Oate~ 12/04/2008 

Chec:<' Nuttlber: lU6 

N~ 1846 

p:z..u", (J.." ffJl'lJ/)Atrd h"d t?~"" O.tI.lA$l 

t:tf1372f4Sf Beverly Cooperative BacIk e~etly.MA 

10-10159-PBS (D.MAL0457 

13-1064_0374 
403 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 409 82732.393

capture Date: 0111212009 Sequence #: 4092120573 

ROBERI' H. EREMIAN P.D.SOX3195 

BEVERlY. MA 01915 

J1L '10 

1855 

P:~oum ------DooAR:-' 51 

Blectraui-c Bndora-.c.tG 

nate Sequence 

01/10/2009 011005444 

01/12/2009 004092120573 

01/1212009 01100S4« 

No Payee i:rldo:rsemea.e. J'cn1nd 

Page 50f 48 

Baalt .. Dorn 'l'RN BankName 

11131034& zg N 8Al5IZt or AMSRICA, NA 

111310346 'lit N BAmt or AHilRICA, n 11301798 Y Y llAS'lZRN BANIt 

Print Req:#20100331002825 Frl Apr 02 01:38:30 cor 2010 

10-10159-PBS (D.MAL0458 

13-1064_0375 
404 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 410 82732.394

BankofAmerica ~ 

Capture Date: 02111/2009 Sequence #: 1270747625 

ROBERT H. EREMlAN P.O.60xm5 

BEVERLY. MA 01915 

BANI( OF AMERICA 

•• •••• 11. I: •••••• •••• OOq3~.· 

No Blect.:r:cmlc Endorstllllllmta Found 

No Payee Bndor&8IDeXI.ts round 

;>2!137214S< 2128 00 

2128;?~ 

"" 

'(~r# fejIiii999 

600Z 0 l fB:J 

Pag.21 0146 Print Req:#20100331002825 

JolL .to 

1870 

t ____ .-

Fr! Apr 02 01:36:37 COT 2010 

10-10159-PBS (D,MAL0459 

13-1064_0376 
405 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 411 82732.395

BankofAmerica ... 

Capture Date: 03111/2009 Sequence #: 1270886009 

,... 

I 

REMITTANce ADVICE ROBERT H. EREMIAN I P.O. eox 31~, 

BEVERLY. MA 01915 

P:~OUNr u" ftyfl4A<,! 4t)d %0 

,._",:_- •••• 0'1:13"· 

'~ 

1

8 <, 

l

! 

0, 

R 8>: 

• No Ileetronie :&:nd.orsamenta J'QW:ld 

1110 Payee. Endorsements Found 

Page 29 of 48 Print Req:#20100331002825 

~ 

110 

N~ 1878 

DoUAASI 

Frl Apr 02 01:38:44 COT 2010 

10-10159-PBS (D.MAL0460 

13-1064_0377 
406 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 412 82732.396

BankofAmerica _~ 

.... 

Capture Date: 0411412009 Sequence II'. 1192478044 

ROBERT H. EREMIAN P.O.BOXJ'95 

BEVERLY, MA 01915 

Blectronic l!:ndcrlllmnent& 

Date SSQUence 

04/14/2009 011006528 

n4/14/2009 011006528 

04/14/2009 001192479044 

No Payee i:ndorl!leme%1ea .round 

Page 43 0148 

\,~'1 ·-'I·I ·,\Q8 

)jUt's tI~:ri.:'lu;J:.:O':> .tpQAaa 

.S;:-tZL£,UZ:. 

_. J3OJ'!l 

111310346 .N 

11301798 y 

111310346 N 

N """""""" .... B.M1K OF AlUR:tCA, NA 

Y US'l"BRm' BAI!Dt 

N ~ OJ' AN;lnu:CA~ NA 

Print Req:#20100331002825 

1895 

Frl Apr 02 01:38:52 COT 2010 

10-10159-PBS (D.MAL0461 

13-1064_0378 
407 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 413 82732.397

BankofAmerica .-.. 

...... Capture Date: 0510612009 Sequence #: 2892362826 

ROBERT H. EREMIAN P.o. BOX 3195 

N~ 1902 

CHECK AMOUNT 

~~~~~~~~~~~~~~ $1 laao -I ~~~' 

Blectronic J:ndorne:me:D.ts 

Date Sec;tue:nce 

05/06/2009 002992362826 

05/06/2009 01200073' 

05/05/.2009 012000734 

No payee B:ndorsements :rou.nd 

Page 4 ofe6 

BANK Of AMERICA 

••••• 0"1"1"111· 

Bank t SOJ'D I1'RN BnnkName 

111310346 N N BANK 01' AMERICA, NA 

11301798 Y Y EAS~']UI:N lliWK 

111310346!1 N BANK or Ald.:mRlCA~ NA 

Print Req:#20100224003161 

., ....•.... ,. 

Thu Feb 25 03:38:47 CST 2010 

10-10159-PBS (D.MAL0462 

13-1064_0379 
408 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 414 82732.398

BankofAmerica _ ...... 

..... Captur. Date: 0610912009 Sequence #: 3092930476 

ROBERT H. EREMIAN P.O. BOX 3195 

Blect:.rozrl.c x:tldorsementa 

Date Sequanoe 

Q6/09/2009 0030929304.76 

06/09/2009 011006129 

06/09/2009 01101)6129 

No Payee l!!rld.orsementa I'OUlld 

Page 100186 

Bank t BOI1J IJ'RN BallltNama 

111.310346 N N l3ANK OF AIClmICA~ NA 

11301198 Y 'Y lfASTERN ;B.AN:K 

111310346 N N BA.NK OJ' AlORICA., NA 

Prtnt Req:#20100224003161 

N': 1910 

Thu Feb 25 03:39:02 CST 2010 

10-10159-PBS (D.MAL0463 

13-1064_0380 
409 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 415 82732.399

BankofAmerica ___ 

-.... 

Capture Date: 07107/2009 Sequence It. 3192416168 

ROBERT H. EREMIAN P.O. BOX 319S 

BEVERLY. MA 01915 

-3:lL n. 

1917 

--DOUAIISI 

fiROSSAMT. CHECK AMOUNT 

JJ~~P-~BM~fftUU~L---c=~~c=j$1 I~.-I 6l"<l'-=-

BANK Of A....,ERlCA 

11· •••• , •• ......... ;1 : •••••• 0'13311· 

Klectroll.ic Endorsements 

oate Sequence 

07/0612009 01.2001416 

1J7/07/.2009 0120014.16 

07/0712009 003192416168 

No Pe,yee ltndorsements round 

Page 18 of 86 

f211372145f Beverly Cooperaliyo Sank Beverly, MA 

>2113721.115< 

i ~~~~.gJg 06 2009 .~ 

111310346 N N 

11:301798 Y Y 

111310346 N N 

Print Req:#20100224003161 

_ .... SANlt OJ' AMERICA, NA 

lIAS'l'E"" BANK 

BANK OF AMERJ:CA, D 

, ... ---~ 

Thu Feb 25 03:39:10 CST 2010 

10-10159·PBS (D.MAL0464 

13-1064_0381 
410 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 416 82732.400

BankofAmerica _ 

...... Capttlre Date: 0812012009 Sequence #< 2492571851 

ROBERT H. EREMIAN P.O. BOX3195 

BAtiK (If AM£RICA 

•••• .,O'1~~II· 

Electronic ~sementB 

Date Sequence 

08/19/.2009 011003442 

08/20120QS 011Q03U2 

Oa/20/2009 002492571851 

No Payee Endorsements Fol:.md 

Page 31 oras 

111310346 N N 

11301798 Y Y 

1113103.6 N N 

Print Req:#20100224003161 

.-..... BANK OF AKIm:ICA.. NA 

BAS'l'B1UJi BANX 

BlU\IK OF AUR1CAl' NA 

N~ 1929 

tHEe): AMOuNt 

.......... ' 

Thu Feb 25 03:39:24 CST 2010 

10-10159-PBS (D.MAL0465 

13-1064_0382 
411 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 417 82732.401

BankofAmerica __ 

.... 

Capture Date: 0911512009 Sequence It. 2092038089 

ROBERT H. EREMIAN 

BAHt. OF AMERICA 

n'_"' I: •••••• ,: •••••• '°'13311. 

Electronic Endorsements 

Dat!8 Sequence 

09/14/2Q09 011001695 

09/1snoa9 OOl0921J38099 

09/14/2009 011001695 

No Payee i:ndor&ements J'oUnd 

Page 39 of 86 

J;lIUIx :J SOI'D 'l'RN BonkNams 

111310346 N m BANK or AM3RlCA~ NA 

111310346 N N BANK OJ' AImR.:tCAJ NA 

11301198 Y Y PSTEu BANK 

Print Req:#20100224003161 

N~ 

~ 

no 

1938 

...•...•••. ~ 

Thu Feb 25 03:39:26 CST 2010 

10-10159·PBS (D.MAL0466 

13-1064_0383 
412 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 418 82732.402

capture Date: 1010912009 Sequence #: 3992375357 

ROBERT H. EREMIAN 

I BANK OF AM.£fjICA 

l_~~II' .: __ .,.: ••••• OQ3311· 

'-~---'~-:a1'l21 i372145. 

i1l'arlYB~~liY.t~BanIc 

Electronic EndorS8IIII!mts 

Date SeqUenCe 

10/09/2009 011002988 

10/08/2009 011002988 

10/09/2009 003.992375357 

No Payee ltXldorsemt!iJlea 70tUld 

Page SO 0186 

"""". 11301798 Y BOl"D 

111310346 N' 

111310346 N 

Print Req:#20100224003161 

--lWl'l'l!:"",,,,,,,,, 

B.AN.K OJ' AMmtXCA, 1m 

BANK 01' A.M.BR'ICA, NA 

N.3 .. 1948 

.',1· ........ •• 

Thu Feb 25 03:39:36 CST 2010 

10-10159-PBS (D.MAL0467 

13-1064_0384 
413 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 419 82732.403

BankofAmerica ~ 

~ 

capture Oat.: 1110412009 Sequence #. 3692067832 

P~OUNT 

ROBERT H. EREMlAN P.O. BOX 3195 

BEVERLY, MA 01915 

a 'fftumaLau:I,Z DOMRS; 

....klL 110 

N:! 1955 

GROSSAMr, DISC. CHECK AMOUNT 

$1 /,-ro. =+ ~~~~~~~~~~jL-C~~~~~~-------i:::::D~~~~~I~pnmD[N::::j ~!~. 

BANk. Of ,dMER1CA cP~. "'_", .: •••••• ,: •••••• 0'13311· 

Electronic I:Ddorsecrr;e,nts 

Date Sequence 

11/03/2009 012001231 

11/(14/2009 00]69206783.2 

11/0412009 012001231 

No Payee BndorsllI!II9:1t& J'otu:Id 

Page 56 of as 

2113n14~, ..... ~~_\, 

• 1":I ...... ~hl r~' 

Btmk # BOrn 'l'RN BemtNSIIIie 

11.l31.D346 N' lit BANPi: OF .Al!lERIC!A~ NA 

111310346 N N l3.Al'lK Olr AIBlUCA, lIlA 

11301798 y 

Print Req:#20100224003161 

.. ' ......... . 

Thu Feb 25 03:39:36 CST 2010 

10·10159·PBS (D.MAL0468 

13-1064_0385 
414 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 420 82732.404

BankofAmerica .-. 

..... Capture Date: 1210812009 Sequence #: 3292925558 

ROBERT H. EREMIAN P.o. BOX 3195 

Electronic Endorsements 

Dat.e Sequence 

12/08/2009 003292925558 

12/07/2009 011004014 

12/Q7/20D9 011004014 

No Payee Endorsements Fo'l.lnd 

PageS80f86 

BOro 'nUiJ 

111310346 N N 

11301798 'Y T 

111310346 N N 

PrInt Req:#20100224003161 

-..... BANK OF AMli:ltICA, D 

ltAS'l'BRN lUINK 

:aANK or AMERICA, NA 

....klL- ". N~ 1965 

Thu Feb 25 03:39:36 CST 2010 

10·10159·PBS (D.MAL0469 

13.1064_0386 
415 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 421 82732.405

BankofAmerica .-. 

.... 

Capture Date: 0111212010 Sequence #: 3292189082 

-------_._ .. _-._---_.-... _ ....... _-

ROBERT H. EREMIAN 

i ., c::;"} .. n 

137Z1~ZrZVXRLVCCCP:G~~~c 

. 

Electronic ErIdorsementB 

Data Sequence l>ank # BOJ'!) = _ .... 01/1.2/2010 012000787 111310)46 " N BAmt or AM:i£RlCA1 

01/12/2010 003;292189082 111310346' N "" " BAN.tt Or AMBRICA, NA 

01/12/2010 012000787 11301798 y Y EAS'l'SRN BANl'C 

No l"ayae lI:nd.orsements .round 

Page 78 ofeG Print Req:#20100224003161 

N~: 

-2:lL IJO 

1974 

Thu Feb 25 03:39:42 CST 2010 

10-10159-PBS (D.MAL0470 

13-1064_0387 
416 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 422 82732.406

BankofAmerica ... 

Captur. Date: 0210912010 Sequence #: 3492314576 

P~OUN1' 

ROBERT H. EREMIAN P.O. BOX 3195 

BEVERLY, MA 01915 

BANI( Of A .... t£RICA 

u· •••• ,,· .:: •••••• ,: ••••• 0'133"· 

>~>1.:i:372.:.:i:4S....:;·· 

0057 '00 - -Q3i/-l0 0057 00 

20JOQji09 06 034 

Electronic 1tndoraements 

Sequence 

02/09/2010 011006062 

02/09/.2010 003492314516 

02/08/2010 011006062 

No Jilayee indorsements FOund 

Page 85 of 86 

"""" * BOFD 11301798 y 

11131034.6 N 

1113103'6 N 

TRN 

Y 

.. 

N 

Print Req:#20100224003161 

BANl(; CW AKHRXCA; NA 

BANK OF AMERICA. NA 

DOUARSj 

Thu Feb 25 03:39:51 CST 2010 

10·10159-PBS (D.MAL0471 

13-1064_0388 
417 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 423 82732.407

APPENDIXB 
418 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 424 82732.408

Brian G. Svoboda 

Karl J. Sandstrom 

PHONE: (202) 654·6200 

FAX: (202) 654·6211 

EMAIL: BSvoboda@perkinscoie.com 

EMAIL: KSandstrom@perkinscoie.com 

July 10, 2013 

Daniel A. Schwager, Esq, 

Staff Director and Chief Counsel 

Committee on Ethics 

U.S. House of Representatives 

1015 Longworth House Office Building 

Washington, DC 20515 

Dear Mr. Schwager: 

REC[IVEO 

2013 JUL 10 P:l 3: 35 

COI~i'iITTEE C 'J E' ,:::; 

Perkins I Coie 700 Thirteenth Street, NW., Suite 600 

Washington, D.C. :WOOS-3960 

PHONE,202.654·6 200 

FAX; 202.654.6211 

www.perkinscoie.com 

We write on behalf of our client, Representative John Tierney. We appreciate the opportunity to 

respond to the report and findings transmitted by the Office of Congressional Ethics ("OCE"). 

The Committee on Ethics should dismiss the matter. 

INTRODUCTION 

In this case, a process that was intended "to increase transparency and accountability within the 

ethics process" I has instead resulted in a referral that misstates the relevant law, omits essential 

facts, and disregards its governing rules. It sheds no new light on a matter that has thoroughly 

been reviewed in other proceedings. 

On the core question of whether Mrs. Tierney properly regarded the funds from her family as 

gifts-on which this matter entirely hinges--oCE plunges recklessly into federal tax law, a 

subject which regularly confounds even the most seasoned of practitioners. OCE had several 

oPPoliunities to avoid its erroneous conclusion. It interviewed the experienced tax attorney who 

counseled Mrs. Tierney's brother, who had engaged in discussions and seen records evidencing 

her brother's intention to make gifts, and who voiced his opinion that Mrs. Tierney received gifts, 

not income. Representative Tierney also presented OCE with a memorandnm from a former 

senior attorney of the Internal Revenue Service that reached the same conclusion. 

Yet OCE disregarded this expert authority and relied on its own reading of the law. Its entire 

legal analysis is set forth in a lone footnote citing two cases, one of which reaches the opposite 

1 Report of the Members of the Special Task Force on Ethics Enforcement at 4 (Dec. 2007). 

0990I-000IILEGAL27025299.1 

ANCHORACiE . SElliNG SELlEVUE BOIH CHICAGO OALlAS DENVER· lOS ANGELES· MADISON· NEW YORK 

f'AtO ALTO, PHOENIX PO~TLAND SAN DIEGO SAN fRANCISCO SEATHE SHANGHAI· TAII'F.I WASHINGTON. D.C 

Perkins Coie UP 
419 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 425 82732.409

Daniel A. Schwager, Esq. 

July 10,2013 

Page 2 

outcome on remarkably similar facts. aCE's analysis of central tax issues is no more credible 

than the "diagnosis" of a layperson who rejects the opinion of a renowned specialist and uses 

Google to conclude that he has a rare, incurable disease. 

On the facts, aCE's "investigation" consisted ahnost entirely of reviewing court records that 

have been in the public domain for nearly two years. Yet OCE's findings consistently omit 

testimony and statements that support Representative Tierney's position. These omissions are so 

frequent, and often so close in proximity to the passages in the records cited, so as to raise 

serious questions about the review's care and impartiality. 

Over the past four years, the Committee has repeatedly reviewed and dismissed referrals from 

OCE that werc legally flawed and factually inaccurate. This referral is no exception. Besides 

clearly misunderstanding the tax laws and selectively presenting the facts, OCE never told 

Representative Tierney that it was considering any allegation about his taxes, nor about his 2010 

personal financial disclosure statement. He received his first notice of these new allegations 

when aCE sent its report on June 13. 

At bottom is the simple question of whether a Member of Congress must identify a spouse's 

family member as a source of spousal income when that family member gives money to the 

spouse. The law is clear: it presumes that the family member is not a reportable source of 

income. OCE's careless treatment of the facts, law and its own rules provides no reason to 

question the correctness of Representative Tierney's filings or tax returns. 

DISCUSSION 

I. With a Clear Lack of Understanding of Federal Tax Law, aCE Blunders Into an 

Erroneous Conclusion of Unreported Income 

This matter must be dismissed unless the Ethics Committee can confidently conclude that OCE's 

understanding of the underlying tax law is correct. No one practicing tax law and familiar with 

the facts of this case could reach that conclusion. In a seventeen-page report, with nearly 400 

pages of exhibits, the referral discusses the entire governing law in a lone footnote, citing two 

cases and no other authority.2 

To understand the flimsy legal foundation upon which aCE's referral is constructed, one can 

start with Lane v. United States, one of the two cases on which aCE relies.3 Lane supports 

Representative Tierney's position. It found that funds paid to a personal business secretary were 

gifts, not income. In Lane, the executor of a deceased taxpayer's estate sought a refund of gift 

2 OCE Findings 1J 23 n. 6. 

, 286 F.3d 723 (4th Cir. 2002). 

0990I-0001ILEGAL27025299.1 
420 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 426 82732.410

Daniel A. Schwager, Esq. 

July 10, 2013 

Page 3 

taxes that, he said, were erroneously paid on compensation for services to the taxpayer's 

secretary over a period of five years. The secretary had handled the deceased taxpayer's 

personal fmancial affairs, and received special training to do 50.5 There was no document 

establishing an employment or contractual relationship between them, and no other evidence of 

negotiation or exchange.6 She had paid no taxes on nearly $800,000 in payments spanning five 

years.7 However, there was evidence that the deceased taxpayer had regarded them as subject to 

the gift tax, "to his own financial detriment.,,8 

The court in Lane upheld the secretary's treatment of the payments as gifts. The court noted the 

executor's attempts to get the secretary "to defend the payments by showing what she had done 

to deserve them, thereby twisting her words into an admission that she had 'earned' them.,,9 But 

the court noted the circumstances supporting gift treatment: the family-like affection between the 

taxpayer and secretary, his longstanding practice of making substantial gifts to her and his family 

members, and the expressions of his intention to treat the payments as gifts, including his 

treatment of them as such for gift tax purposes.10 The court noted: "Not every human interaction 

is animated by a desire to secure an advantage, obtain compensation for services or receive a 

quid pro quo. ,,11 Lane flatly supports Representative Tierney's position, as do other authorities, 

not cited by aCE, in which payments made out of affection were treated as gifts even when 

services were provided. 12 

To reach its conclusion, aCE not only had to ignore the clear impact of the very case it cited, but 

also the fact that the IRS presumes intra-family transfers to be giftS.I3 The reason for this 

presumption is not simply to avoid interjecting the IRS into farnily matters, but also to deter 

income shifting.14 If Mrs. Tierney's brother had indeed been compensating her for business 

services, he would have had a strong incentive to treat the money as wages: he could have 

deducted them as business expenses and reduced his tax burden. IS Yet he chose not to do so. 

OCE's referral does not acknowledge or even try to overcome the normal presumption of gift 

treatment when family members provide funds to one another. Instead, it relies simply on 

4 See id at 725. 

, See id at 726. 

6 See id at 726, 727. 

7 See id at 726. 

• Jd at 730. 9 Jd at 727. 

10 !d. at 729.30. 

II Jd at 733. 

12 See, e.g., Kavoosiv. Commissioner., T,C, Memo. 1986-190 (U.S. Tax Ct.). 

J3 Harwoodv. Commissioner, 82 T.C. 239, 257-258 (1984). 

14 Hendrickson v. Commissioner, T.C. Memo. 1999-357 (U.S. Tax Ct.). 

" See Caledonian Record Publishing Co. v. U.S., 579 F. Supp. 449 (1983) (expenses recharacterized as gifts). 

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Page 4 

Duberstein v. United States, 16 without discussing how the case relates to the presumption. 

Duberstein stands for the proposition that the donor's intention is a critical consideration in 

determining whether a payment is a gift. 17 The record is replete with evidence of Mrs. Tierney's 

brother's intention to make a gift. For reasons unexplained in the report, DCE treats his intention 

as irrelevant but nevertheless cites Duberstein as settling the legal question. This disregard for 

the principal holding of Duberstein is simply inexplicable. The weight given to the donor's 

intention and the presumption that intra-family transfers are gifts continue to be guiding 

principles of IRS review but are ignored in the OCE referral. 

Finally, the Internal Revenue Manual shows that DCE's citation of the general tax evasion 

statute, 26 U.S.C. § 7201, is not "relevant law" in this matter. IS As the manual shows, the U.S. 

income tax system is one of taxpayer self-assessment. The taxpayer's duty is to employ ordinary 

business care in preparing a return and to pay the tax which the taxpayer determines is due. Only 

after a highly specified and procedurally detailed examination process may the IRS determine 

and notify a taxpayer of a tax deficiency. 19 The taxpayer can then challenge the determination 

both administratively and judicially. If the taxpayer is unsuccessful in sustaining his or her 

position, he is required to pay the tax owed and any accrued interest: he is not found to have 

''violated federal law. " The question of tax evasion is raised only in extraordinary cases of 

deceit, subterfuge, camouflage, concealment, or some other effort to color or obscure events, or 

make things seem other than as they are.20 But by DCE's logic, whenever a Member of 

Congress or a spouse takes a tax position that a political opponent disputes later, they face the 

potential charge that they "violated House rules and federal law" and may have willfully 

attempted to engage in tax evasion. This is not how the tax laws work. It is not how the rules of 

the House work. 

DCE's referral presents several warning signs that should have directed it away from these clear 

errors: 

First was the paucity of authority DCE cited, and what that authority actually said. The close 

parallels between the story of Jane Young, the deceased taxpayer's actual secretary in Lane, and 

Patrice Tierney, whom OCE described as her brother's "personal business secretary," should 

have been enough to deter altogether OCE's frivolous suggestion of tax evasion. 

'6363 U.S. 278 (1967). 

17 See Yang v Commissioner, T.C. Summ. Op. 2008-156 (U.S. Tax Ct.) (holding that donor's intention was the most 

critical consideration and relying on Duberstein). 

18 See H. Res. 895, J 10th Cong. § 1 (c )(2)(C)(i)(II)( dd). 

19 Internal Revenue Manual, http://www.irs.gov/irml 

2. http://www.irs.gov/irmlpart25/irm_25-001-001.html 

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Second was the testimony provided by the tax attorney consulted by Mrs. Tierney's brother.21 

He gave evidence that Mrs. Tierney's brother intended to make gifts to her: that the brother said 

"he wanted to give a gift to Mrs. Tierney,,,22 that they specifically discussed the gift tax rules,23 

and that his QuickBooks records identified the funds provided as "gifts for Patrice.,,24 The 

attorney said that he believed the funds were gifts, only then to be challen~ed by OCE on the 

extent of his direct knowledge and his recollection of the Duberstein case. 5 

Third was a memorandum provided by Representative Tierney to OCE that was prepared by D. 

Sean McMahon, a former Senior Attorney in the IRS's Office of Chief Counsel and former 

Special Assistant United States Attorney who handled tax cases on behalf of the IRS. Written to 

respond to identical charges that were advanced during Representative Tierney's 2012 reelection campaign, the memorandum outlined the presumption that intra-family transfers are 

gifts, carefully distinguished the Duberstein case, and concluded from a review of the law and 

the same court records available to OCE that "the transfers made to Mrs. Tierney by her family 

are clearly giftS.,,26 aCE neither acknowledged nor engaged Mr. McMahon's legal arguments. 

In an apparent reference to Duberstein, the findings say simply: "The Board notes that the legal 

opinion of the counsel for the campaign committee conflicts with U.S. Supreme Court 

precedent. ,,27 

Thus, OCE's referral hinges exclusively on an erroneous legal judgment that Mrs. Tierney 

unreasonably and wrongly treated money received from her brother as a gift while she was 

caring for their mother and her nieces and nephews, and assisting her absent brother in managing 

his personal banking account. Not only was it reasonable for her to take that tax position; it was 

consistent with the advice received from tax professionals, with the expert advice provided to the 

OCE in this matter, and even with the cases OCE itself cited. To commence a review based on 

OCE's inexpert, snap judgmcnt would make the Committee on Ethics a de/acto tax court, 

exposing Representative Tierney and future Members to unfounded, scurrilous charges. The 

Committee should summarily reject aCE's unfounded conclusion regarding the tax laws. 

2l See aCE Exh. 7. 

22 See id ~ 2l. 

23 See id ~~ 21-22. 

24 See id ~ 20. 

2S See id. ,,24-26. 

26 To assist the Committee, we have provided a copy of Mr. McMahon's memorandum with this response. See 

ExhibitA. 

27 See OCE Findings ~ 79 n.92. 

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II. OCE Consistently Omits Mention of the Facts That Support Representative 

Tierney's Reports and Retnrns 

Only a selective and erroneous use of the facts permits OCE to claim that Mrs. Tierney should 

have treated the money received from her family as income. All of the facts have been in the 

public domain for years. They were a source of dispute most recently in Representative 

Tierney's 2012 campaign. Mrs. Tierney's interactions with her family were fully explored in 

separate legal proceedings involving Mrs. Tierney and her other brother, Danny Eremian. OCE 

draws almost entirely from these proceedings in its review. Except for two witness interviews, 

two news articles, and documents voluntarily produced or publicly filed by Representative 

Tierney, the court documents, transcripts and exhibits from these proceedings were all that OCE 

relied upon. 

The court records show that Mrs. Tierney received gifts, not income. First, the judge in the case 

involving Mrs. Tierney said flatly: "she's not a tax evader.,,28 He said further that Representative 

Tierney "is not implicated in this in any way, shape or form ... ,,29 And, far from contending that 

she received taxable income from her brother, the government asserted the opposite at the trial in 

which she testified, saying that her brother had structured the payments to avoid gift tax liability. 

None of this is even mentioned in OCE's seventeen pages of written findings. Moreover, a 

careful review of the fmdings shows a consistent pattern: OCE quotes a selected passage from a 

court document to advance its conclusion, only to have it undercut by other passages that OCE 

never mentions, which occur in the same document. This happens often enough, with the 

exculpatory language close enough to the quoted passage, so as to raise serious questions about 

the fmdings' care and impartiality. 

For example, OCE cites "a statement by the government during the sentencing proceeding of 

Mrs. Tierney'S trial [sic]" that "she acted as her brother's personal business secretary.,,30 But 

OCE fails to mention what the judge said in that same proceeding: "1 don't downplay for a 

moment the truly humane and wonderful things you've done, out oflove, not only for those who 

are closest to you but also for others in the community. And I am satisfied that that comes not 

from any position or public notoriety. I am satisfied that comes from the heart.,,3l 

In that same vein, OCE cites trial testimony and exhibits to suggest that Mrs. Tierney "received 

between $39,800 to $122,497 in direct payments from her brother" that should have been treated 

"OCEExh.4, at 13-1064_o175. 

29Id at 13-1064 0174. 

30 OCE Findings'll 32. The reference to "Mrs. Tierney's trial" is yet another mistake in OCE's referral. As the 

exhibits to the findings show, there was no trial in Mrs. Tierney's case; she instead waived indictment and accepted 

responsibility in a plea agreement with the government. See OCE Exh. 1, at 13-1064_0002, 0012. 

31 OCE Exh. 4, at 13-1064_0190. 

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as income.32 But aCE fails to mention that, on the ensuing pages of that very same transcript, 

the government repeatedly referred to those amounts as "gifts," and tried to establish that her 

brother arranged the payments to "come tmder the threshold of the gift tax return" and "avoid the 

filing of a gift tax return ... ,,33 It was after this line of questioning that the judge said, "If you 

believe it's a gift. I mean, I'm not getting into that one," which aCE cites in paragraph 58 of its 

findings. 34 

From Mrs. Tierney's sentencing hearing, aCE cites a statement by her attorney that "her 

brother's bank account paid for her monthly car lease and her mobile phone.,,35 But here is what 

the attorney actually said: 

In the course of that she was also taking care of her ailing elderly mother 

who I now think is 80 years old. It is true that her brother gave some, gave 

her some gifts, including paying, I think it was $250 a month for her VW 

Beetle car auto lease. That's the auto lease. And did pay, if you will, for the 

cell phone which was part of a family plan that she had with the nieces and 

nephews. So these were, these were gifts from her brother. Her brother 

was by and large paying the bills for the, for the nieces and nephews, and 

this was part of his, part of the gifts that he was giving not only to Mrs. 

Tierney but to his mother.36 

aCE then cites Mrs. Tierney herself as saying that she received checks from her mother as "a 

way to compensate me for all that I did for her.,,37 But aCE omits the next two sentences: "Q. 

Your mother has to pay you to help her out? A. No, she doesn't have to pay me. ,,38 And it 

omits another exchange four pages later: "Q. Well, okay. Did you do work? Were you 

compensated as an employee? A. No.,,39 

There is one especially critical omission from aCE's findings. In the judicial proceedings 

involving Mrs. Tierney and her brothers, the government would have had every incentive to 

determine that Mrs. Tierney received income, if indeed that had been the case. But, with access 

to the same records that aCE had, it never suggested that the general federal tax evasion statute 

at 26 U.S.C. § 1701 pertained to Mrs. Tierney at all, let alone Representative Tierney. aCE cites 

this statute once and then abandons it, its prejudicial effect accomplished. But the judge in Mrs. 

32 OCE Findings 1[ 49 (citing OCE Exh. 2, at 13.1064_0062.63). 

33 OCE Exh. 2, at 13-1064 0066. 

14Id at 13-1064 0071. -

35 OCE Findings-1[ 50 (citing OCE Exh. 4, at 13-1064_0185). 

16 OCE Exh. 4, at 13-1064_0185 (emphasis added). 

17 OCE Findings 1[53 (citing OCE Exh. 2, at 13-1064_0060). 

18 OCE Exh. 2, at 13-1064 0060. 

39 OCE Exh. 2, at 13.106(0064. 

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Tierney's case was more straightforward than that. Of Mrs. Tierney, he said: "she's not a tax 

evader.,,4o Of Representative Tierney, the judge said he "is not implicated in this in any way, 

shape or form.'>'!1 

TIl. OCE's Review Is Marred By Repeated Violations of Its Governing Resolution 

A. OCE withheld the trne scope of its review 

Under the OCE Resolution, Members have the right to know and confront the allegations against 

them. To commence a preliminary review, OCE must find a reasonable basis to believe an 

"allegation" against a Member, and must disclose that allegation to the Member in writing.42 It 

may only authorize a second-phase review if it finds probable cause that the alleged violation 

occurred, and it may then only refer the matter to the Ethics Committee if there is substantial 

reason to believe that same allegation. While OCE's rules claim the authority to "address any 

potential violations within its jurisdiction that are discovered in the course of a review," the OCE 

Resolution contains no such provision.43 In any event, neither the OCE Resolution nor the OCE 

rules can properly be read to allow OCE to reframe an initial, defective allegation in a way that 

deprives the subject of an opportunity to respond to new and more serious allegations. 

Yet this is exactly what OCE has done here. The allegation that OCE presented to the 

Committee on Ethics is not the same one that it presented to Representative Tierney. When OCE 

first informed Representative Tierney of its review on January 29, it told him it was reviewing 

the following allegation: 

From 2007 to 2009, Representative John F. Tierney's wife allegedly received monthly 

payments from her brother for various services that she provided to him, including 

managing his bank account. The payments may have been earned income, which were 

not included in Representative Tierney's financial disclosure statements. 

If Representative Tierney failed to disclose eamed income that his spouse received, he 

may have violated House Rule 26 and the Ethics in Government Act. 

This was the allegation to which Representative Tiemey responded. There was no allegation that 

he violated federal tax law and certainly no claim that his conduct implicated the tax laws. No 

facts have ever been introduced in this matter that would support such a finding, and he certainly 

was never given the opportunity to respond to any such claim. He produced all of the documents 

OCE requested of him, and he voluntarily produced his tax returns for 2007,2008 and 2009-the 

40 OCE Exh. 4, at 13-1064 0174. 

41Id at 13-1064 0175. -

42 H. Res. 895, 110th Congo § J(c)(l)(A); Office ofCong. Ethics R. 7(A). 

43 OCE R. 3(E). 

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years covered by the allegation.44 Yet it soon became clear that OCE was straying well beyond 

what it informed Representative Tierney it was investigating. First, OCE asked Mrs. Tierney to 

submit to the equivalent of an IRS audit, seeking copies of her and her family's bank statements 

for a time period beyond the scope of the allegation. She was also asked to submit to an 

interview, even though she was unable to do so because of a recent head trauma she had 

sustained in an automobile accident. She continues to be treated for these injuries. She recently 

underwent an MRl, and receives regular neurological therapy and physical therapy. 

Second, even after Representative Tierney timely provided OCE with a comprehensive legal 

analysis, showing why the allegation was baseless, OCE proceeded to second-phase review 

without explanation. His counsel informed OCE that the Representative would not agree to an 

interview only after OCE refused to explain the discrepancy between the allegation as presented 

and the information sought, would not explain how the underlying law supported the allegation, 

rejected an invitation to provide further legal analysis, and declined to consider less burdensome 

means of seeking any genuinely needed information.45 

Representative Tierney appeared personally before the OCE Board to present his position on the 

matter, and to explain his concerns about the review, only to be rebuffed.46 On June 13, OCE 

gave him its report, telling him for the first time that it had considered allegations not simply 

about his 2007, 2008 and 2009 fmancial disclosure statements, but about his 2010 statements 

also, and about his personal tax returns as well. 

OCE can no more claim that it "discovered" new information in the course of its review, than a 

latter-day Columbus can claim that he discovered America. For years now, the matters involving 

Mrs. Tierney and her family have been the subject of partisan political attacks, court proceedings 

and media discussions. OCE was well aware of this when it began the review. There is no 

reason whatsoever why OCE could not have disclosed the review's true scope to the 

Representative from the beginning, as it was required to do. That it chose to do otherwise not 

only runs afoul of its governing resolution but manifests a desire to reach a conclusion based not 

on the law and facts but on a predetermined outcome. 

44 OCE says that "Representative Tierney did not provide the OCE with his Calendar Year 2010 tax return." OCE 

Findings 1 74 n.90. While OCE sought a wide swath of personal financial information from Mrs. Tierney, it never 

sought tax returns from Representative Tierney, and never told him his filings covering 2010 were at issue in its 

review. 

45 See, e.g., OCE R. 4(D) (authorizing the use of interrogatories). 

46 See OCE Findings 1 79. 

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B. The OCE fmdings are replete with prohibited and false conclusions about the 

validity of the allegations 

OCE's authorizing resolution states that OCE Findings shall not include "any conclusions 

regarding the validity of the allegations upon which it is based or the guilt or innocence of the 

individual who is the subject of the review .. .'.47 Despite this prohibition, OCE reached a clear, 

if erroneous legal conclusion about the nature of payments Mrs. Tierney received from her 

brother-a conclusion upon which OCE entirely, and improperly, based its referral. 

The Ethics Committee has previously admonished OCE for injecting similar conclusions into its 

fmdings. In the Graves matter, the Committee noted that "OCE's findings improperly make 

conclusions regarding the truth of statements made by cooperating witnesses.',48 The Committee 

further noted that OCE exacerbated this error by "extrapolating" its prohibited conclusion into a 

conclusion regarding Representative Graves' guilt.49 Here, as in the Graves matter, OCE has 

used its prohibited conclusion to form the basis of its referral. The referral depends entirely upon 

its unsupported legal conclusion regarding the appropriate application of tax law to the money 

Mrs. Tierney received from her brother. 

OCE cannot avoid a prohibited conclusion simply by saying that Representative Tierney "may 

have" violated the law. It could have simply set forth the facts as the OCE Resolution requires, 

and let this Committee reach its own conclusions. 50 Instead, lacking any support for its referral 

in law, it chose instead to justify it through a one-sided document that repeatedly goes out of its 

way to place the Representative in the worst light possible. 

C. OCE ignored its deadlines and kept this review open for almost half of 2013 

Finally, under the authorizing resolution, OCE must transmit a written report to the Committee 

"upon the completion" of a second-phase review. 51 The legislative history makes clear that this 

must occur promptly. The Capuano Report characterized these timeline requirements as 

"critical," and noted that matters should spend "at most three months under consideration by the 

board of the OCE before being referred to the Standards Committee for resolution.,,52 

47 H. Res. 895, !lOth Congo § l(c)(2)(C)(ii)(lI) . 

., In the Malter of Representative Sam Graves, Report of the Committee on Standards of Official Conduct, at 35 

(Oct. 2009) (hereinafter "Graves Report"). 49 Id 

50 See H. Res. 895, 110th Congo § I (c)(2)(C)(i)(II)(aa). 

51 H. Res. 895, !lOth Congo § 1 (c)(2)(C). 

" Report of the Members of the Special Task Force on Ethics Enforcement at 17 (Dec. 2007). 

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This matter has been before OCE for nearl? five months, and it is not the first time OCE has 

failed to comply with these requirements.; In the Stark matter, OCE did not transmit its report 

until more than two months after the second-phase review ended. 54 The Committee noted that 

OCE's actions were in "contravention of [the resolution's] directive," and raised "continuing 

concerns with OCE's adherence to its authorizing resolution."s; Similarly, in the Graves matter, 

the Committee found that OCE's second-phase review was scheduled to conclude on June 9.56 

Without voting to extend the deadline beforehand, OCE did not issue its report and findings until 

July 24. Accordingly, the Committee found that OCE's activities beyond the June termination 

date of the second-phase review were impermissible and ultra vires.s7 

Having opened this matter on January 28, OCE adopted its report on May 31, 2013, and referred 

this matter to the Committee on June 13, 2013. It carmot have been investigative demands that 

required OCE to take the additional time. It had five months to consider the testimony of its two 

witnesses, to review the court documents that had already long been on the public record, and to 

find the two cases on federal income tax law that it misread to reach its flawed legal conclusion. 

OCE took the time it wanted, regardless of what the task force or resolution says, and regardless 

of Representative Tiemey's rights. 

CONCLUSION 

By displaying a basic misunderstanding of an area of law in which OCE has no expertise, by 

omitting facts from the written findings that undermine its conclusion, and by disregarding its 

own rules and those of the House, OCE's referral is so devoid of merit that it warrants slunmary 

dismissal by the Committee. We respectfully request that the Committee close this matter as 

soon as possible, thereby sparing the public, Representative Tierney and his wife the prejudicial 

effects of a deeply flawed review. 

Very truly yours, 

Brian G. Svoboda 

Karl J. Sandstrom 

Enclosure 

"See Graves Report, at 32-33; In the Matter of Representative Fortney "Pete" Stark, Report oflhe Commitlee on 

Standards of Official Conduct, at 2 and n. 8 (Jan. 29, 2010) (hereinafter "Stark Report"). 

" Stark Report at n. 8. 

55 Id. 

56 Graves Report, at 32-33. 

51 ld. 

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Declaration 

I, Representative John F. Tierney, declare under penalty ofpetj1.UY that the response and factual 

assertions contained in the attached letter dated July 10, 2013, relating to my response to the June 

14,2013, Committee on Ethics letter, are true and corree 

Signature: 

Name: 

Date: 
430 


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Exhibit A 
431 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 437 82732.421

Me M A l:lON LAW b F FIe E 

lOP HrGHStRImTr 2Qnl FLooR 

BQSJ'ON',M~A;CHlJSBTrS OZ210 

PRof.m>(617) 906.5560 

J).SllANM¢NfMiON· 

~RnlNw.:it~!t P'AlfkS;~· . 

OfCollN.':1l'L 

JEiffih O'Si:ititVAN 

*lJi$llriroIIOOAli!ml 

:Me ;M1chael R'ezendM 

1h~ B.ostog G1n\1e 

135 MmTisseylllvd. 

Bostoh,Massacl1usetts 02125 

FlO:. (617) 284~6260 

R~; Boston Globe AU,*ations COllcemm~ Gifts 

IlelitMr. Rezendes: 

r have been -asked byihe J~lm::'l'iemey for Congress campaign to examine 

the: alle.glltion you: are threatening: to pqblish in the Boston Globe that 

Congressman Til;:mey's w~.Patriceis1;lould haveinclud~pllyments made to h.er 

by her bro.ther, Robert.a.nd moth..er~ iIiC9me on her federal income taxteturtts 

filed Jointly withhet hushand. Such an anegation is clearly very serious as it 

would suggest pu:blioly both civil and criminal wrongoing. For the reasons 

discussed below. such an ~ati:on lsWithout merit based upon the facts and (he 

publication of s1icha·chiim would be highly reckless. 

By way of backgx:~)lmd. r am a fonnet Senior Attorney with the Internal 

Revenue Semoo. Office()fCbi~fCQ:unse~ 1 am also Ii former Special AssiStant 

Unibild States Attor4ey for Massachusetts and New Hiunpshire whel'e I was 

responsible for handling ~ c~ l)ribeha:lfof the IRS. I have more iWln fifte\ID. ye.ats~rt:X:Perience: investigating, brii.lgingand d~fending IRS tax. matterii fQr both 

~e iRS and taxpaYers. I hola·lill Lt.M. in taxation. Due to tbenatl'lie of ti:1y position with the I.R.S Of!ieeof C11j~f CoUti$el, I routinely. brought and Utigated 

cases and providedlegal advice forihe IRS concetning disputed tax issues. 

To famUiarize mys($Jf with this matter, I have yecviewed ~he 1i~crlpts of 

Mrs. Tierney's sentencing ~_earing and nertestimony at the trial of Todd LYOll&-

and her brother Daiil~l Etemian. I -have al~o read emails from you concetnlng. 

yowaltegatioI) .that such. lraitsfers wei'enot gift$ and yoor claim that yo~ po!;ition 

is supported byunidentified. tax eXperts. 

Your assertiOl.1 that the payments to Pl;ltrice .from family members were not 

gifts is incorrect. The test for 'detennin!n~ the characterization of a tnmsib( is 

highlyfact-specUrcand focuses in material part oil the transferor's intent. One. of 
432 


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Mr. Mi<>hatl R<)ZOudes 

9I24f2012 

I"gei2'6f3 

tl\e Dlost'significant facts considered in waking.that. diitemiination is Whether. thll 

ti;~fera wtire tn~e between.' family members. Although the .Duberstekt ~d 

lItJbert$Qn.r;8,SeJl YQU re~en,.e COIteCt!YIl\ftte tbefllliilysts involved in generally 

detetJ:tIinlng whether a transfer shO):lld])e M(\l'a.eter!wlas a gift, sighificatltg 

n~ither ,\llIseinvolved a trailsfer between famil;y members. 

All a matter Qf conunon sense ane:! ill fe\Xlgnition of IRS pralltiee, l<)gal 

tteati~as in thea'rea have reeogtil'zed that the Duberstein analysi$ is not ajlplie4 

literally tQfamily ti;ansfer situations. 

OllieI' tntraf'lIlliUy transfersareillso, reilularly tr~ated as tuthe e,vel)" though their exCludability Mdettlte Duhersie(n 

crlta'riUslltgllable. A prOl:nise to: pay 1I:11tudent'$ ~(jlIege tuitlon 

and livmgexpenses oh conaitil)ll that the recipient JIlaUltahta 

specifiea scbol~ic average or f\lUain from drinkiilg or smoldng 

maybe stlmulatedby affection,b)!! it also elIacts a quid pro quo 

Il.!I!\ imposes a moral-in some situalio.m; a illgal.-duty to make 

the', payrnelll if the condition is. satisfied, Amouaispatd by 

breadwinners to supper! their sJlouses and. minor children .are 

routinely excluded from the benefici4!iCs- gross income, but 10 the 

extent paid pursuant to legal eompulsio1l, theJle amountswould;not 

qualify .as gifts .i.f th~ Dilberstein criterla wen, pusbed to their 

logical.meme. Despite this, intraiamlly transfers of this type can 

btrproperly viewed as e.xcludable by a higIr~r anthontythan the 

language of {Internal Revenue Co.de] § 1<F2(a}-a supposition, so ob,vioUs that it does nllt require uplicit mention in the Internal 

ltevenue Code, fhatCongress neVer intllnded to tax them. 

t~pl:iasis' added) Bons Bittker & Lawrence Lokken, Federal Taxatton of Incom-e. 

Estates &: Gifts, par: 10.2.6 (20U). 

TrilDSfers between famlly membet\ll are legally preSumed. to.begifts. The 

pr~l)lpti0li has been acknowledged by.the Unite<! $lates 'l:"",Q>Ui't as welllll' 

tliX tteatl~es; ''.Qrtrafl!!nily tral1sfers are presumed to 'hi} gifts," DqlJas v. 

Coin~tliJ1iiir, T.C. Memo 2006-2;12. This presumption canb" overoom.e by Ij. 

showingljmt ill,; family tno:!mbers involved cdnilu\lI\!d IIl1lIS-Iet!gth negotiatiOns, 

which wQutd indicate that the transfeill were not gifts. "See Harwood v. Con)IMssiiJ11$r, 81 TC 239 (1984) in whlcll a family tral1Soolionstrnct'llWdby thll, 

fannly ,acoountant with no arm's-lengtjlbargainlng did not overcome the 

presum:lltiontbat the transfers were gifts. In &Itlte alStone v.Co/111'iif,r~iOni!r; TC 

Memo2QQ3.309 the transfers at isS!ie were determme.d not to be.gifts where each, 

member ilf ilie family negotiate(i the transactio1l through his or her,own 

indepl'ndent coum;el. No suoh evidence of anns-length negotintions-'el\ists here. 

Mrs. Tierney has been qui~ dear that her actiViti$s were done om of love> mid 

carmgfot her family members and appreciated as such, and this testimony is 

uncontradicted. There appears to be little or no eVidenCli to overcome. tlte 

82 732 43S 
433 


pwalker on DSK7TPTVN1PROD with REPORTSInsert graphic folio 439 82732.423

Mr. Mlch.el Rezendes 

9124/2012 

Pago·30f3 

presumptiontllat theintrl!finnily tran$Iers to Mm. Tiern1'lY were anythiilg other 

than gifts. • . 

In regard to y.l)U1' oHum th~t !lIlide(1tilied tax ~1<pertsstipport your 

allegationtlJatthe transferll'to Mrs. Tietney .from Ii~rfamilywere'net !W'ts.ll;lo.te 

tliat 8IlY silclilljlirtion'iSonty as ;good as tlielIiform~tion you gllYe to ~t!ch p.erson~, 

andtlieir exp:eri~e: a~ to:howilieJRSl!an<!tes these ItIlltietlt This is not an ivOry 

tower exercise as to whatClise 1<I\V might. sayiu ~ V~c\llllJl. j3<iCalise tJli:( 

deternliilation of whether a transfer snouiilbe ollaractenZlld as ,1\ ,~ is fa.cf 

int\lllsive, an opinion is not worth .al\)tlhilrg .if it is notfully.wQrnwcL Indelld. I 

fulJ:y reeQgtiiie tM! the lRil 4gentsllJl4 the prosecutors ~v.olit.ed inille 

invesiigatjOn ofMfS.'Tiemeysnd·1ier btolhers were far bettersil1lated.than meto 

Irav.e made ad~etl)linllti.on as to w1i~t1i!Ir !lie'traMfers to Mrs. Tie1'lley viclated the 

law giveil theifliniquc!i powetto nWestigate, learn the fuelS and mlikeallegatlonsj 

if lhere is a proper basis to do 56. Herb, those with the facts neyer m:tde the 

an~gati(l.U you ,$eek to pu\>li&h. In. my opl1rlon, igllorill!l this tealilJl would be 

!\lCklcss Oli }'Our part no matter what an unnamed lawyer or law ptoiessQ1 might 

have told YQU. 

I hope the analysis above helps you und'ltlll:and that for tax purposes the 

transfers made to Mrs. Tierney hyner fi!rnJ.ly are clearly gifts. 

Sincerely. 

D. 

V~ Sean McMllhon