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Bruce Feder (AZ Bar No. 004832)

FEDER LAW OFFICE, P.A.

2930 E. Camelback Road, Suite 160

Phoenix, Arizona 85016

Telephone: (602) 257-0135

Email:bf@federlawpa.com

Counsel for Defendant Scott Spear

Paul J. Cambria, Jr. (NY State Bar No. 15873, admitted Pro Hac Vice)

pcambria@lglaw.com

Erin McCampbell, (NY State Bar No. 4480166, admitted Pro Hac Vice)

emccampbell@lglaw.com

LIPSITZ GREEN SCIME CAMBRIA LLP

42 Delaware Avenue, Suite 120

Buffalo, New York 14202

Telephone (716) 849-1333 / Facsimile (716) 855-1580

Counsel for Defendant Michael Lacey

Additional counsel listed on next two pages

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

United States of America,

Plaintiff.

v.

Michael Lacey, et al.,

Defendants.

No. CR-18-00422-PHX-SMB

DEFENDANTS’ JOINT EXPERT

WITNESS DISCLOSURE

. . .

. . .

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Thomas H. Bienert, Jr. (CA State Bar No. 135311, admitted Pro Hac Vice)

Whitney Z. Bernstein (CA State Bar No. 304917, admitted Pro Hac Vice)

BIENERT, MILLER & KATZMAN, PLC

903 Calle Amanecer, Suite 350

San Clemente, California 92673

Telephone: (949) 369-3700

Facsimile: (949) 369-3701

Email: tbienert@bmkattorneys.com

wbernstein@bmkattorneys.com

Attorneys for James Larkin

James C. Grant (Wash. Bar No. 14358; admitted Pro Hac Vice)

DAVIS WRIGHT TREMAINE LLP

1201 Third Ave, Suite 2200

Seattle, Washington 98101

Telephone: (206) 757-8096

Facsimile: (206) 757-7096

Email:jimgrant@dwt.com

Counsel for Michael Lacey and James Larkin

Gary S. Lincenberg (CA State Bar No. 123058, admitted Pro Hac Vice)

Ariel A. Neuman (CA State Bar No. 241594, admitted Pro Hac Vice)

BIRD, MARELLA, BOXER, WOLPERT, NESSIM,

DROOKS, LINCENBERG & RHOW, P.C.

1875 Century Park East, 23rd Floor

Los Angeles, CA 90067-2561

Telephone: (310) 201-2100

Facsimile: (310) 201-2110

Email: glincenberg@birdmarella.com

aneuman@birdmarella.com

Counsel for John Brunst

Michael L. Piccarreta (AZ Bar No. 003962)

PICCARRETA DAVIS KEENAN FIDEL PC

2 E Congress St., Suite 1000

Tucson, Arizona 85701

Telephone: (520) 622-6900

Facsimile: (520) 622-0521

Email: mlp@pd-law.com

Counsel for Andrew Padilla

. . .

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Steve Weiss (AZ Bar No. 002261)

KARP & WEISS PC

3060 N Swan Rd.

Tucson, Arizona 85712

Telephone: (520) 325-4200

Facsimile: (520) 325-4224

Email:sweiss@karpweiss.com

Counsel for Joye Vaught

__

This expert disclosure statement and its contents are preliminary in light of the

facts that: a) the government’s expert disclosure does not comply with Rule 16,

F.R.Crim.P.; b) the government has disclosed just a small fraction of the data it says it

expects to disclose to the Defendants, with the government producing what the

Defendants understand to be 60 terabytes (60,000 gigabytes) of data in the past week

and representing that an additional 60 servers, comprising at least 440 terabytes of data

(440,000 gigabytes), are yet to come;1and c) the Defendants’ ability to retain potential

experts for the scheduled January 2020 trial date has been severely impaired by the

government’s sweeping and massive pre-trial seizures of the Defendants’ assets and

attorneys’ retainers. Accordingly, this disclosure statement does not represent the

final names and opinions of the defense experts, but is a good-faith preliminary

disclosure statement subject to supplementation once the government’s disclosures

1 One gigabyte of data is approximately 15,477 to 297,317 pages per gigabyte,

depending on the type of data at issue. See How Many Pages in a Gigabyte?,

Discovery Services Fact Sheet, LexisNexis, available at

https://www.lexisnexis.com/applieddiscovery/lawlibrary/whitePapers/ADI_FS_PagesI

nAGigabyte.pdf. Defendants do not currently have the infrastructure to review the

approximately 60 terabytes of hard drives received this past week in discovery to

ascertain what type of data it contains or estimate the pages associated. Similarly, as

Defendants only learned of the 60 outstanding servers, which are purportedly tied up in

the MLAT process, in a letter from AUSA Jones’ dated March 7, 2019 (see

Defendants’ First Joint Motion for Extension of Time to Disclose Anticipated Initial

and Rebuttal Expert Testimony, Doc. 498, at Exhibit 4B). Consequently, Defendants

do not know precisely how many pages of discovery are outstanding.

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and discovery productions are complete, and as the Defendants are able to finance the

review of the disclosure, their investigation, and the engagement of experts.

The potential areas of expert testimony, names of potential experts and their

preliminary opinions are as follows:

1. Bates Butler, former acting United States Attorney in the District of

Arizona, Assistant United States Attorney, Defense Lawyer.

The Defendants anticipate presenting expert testimony on

informant/cooperating witness testimony and sentencing. Mr. Butler is anticipated

to testify about the prosecution’s use of such witnesses, defense proffers, cooperation

agreements and the interpretation and application of such agreements, preparation of

informant cooperating witness testimony by the prosecution, plea agreements and

sentencing recommendations and expectations. Mr. Butler’s opinions will be based

on his experience as a former acting United States attorney in the District of Arizona,

assistant United States Attorney, defense lawyer, seminars he has presented and

attended, and his over four decades of practicing criminal law. A copy of Mr.

Butler’s CV is attached hereto as Exhibit A.

2. Roman L. Weil, Professor Emeritus of Accounting, The University

of Chicago Booth School of Business, Ph.D., CPA.

The Defendants anticipate presenting expert testimony on the following topics:

(1) the functions that a Chief Financial Officer (“CFO”) performs in a corporate

setting, including what is and is not required of a CFO in assessing allegations that a

company or one of its subsidiaries has engaged in unlawful conduct; and (2) the loan

covenants that are typically included in a seller-financed sale.

Professor Weil’s opinions will be based on his education, extensive experience

teaching and writing about corporate governance and accounting matters, and service

on professional boards. Professor Weil has previously testified as an expert on

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corporate governance and accounting matters in state and federal court. A copy of

Professor Weil’s CV is attached hereto as Exhibit B.

3. Alexandra Levy, Adjunct Professor at Notre Dame Law School

The Defendants anticipate presenting expert testimony on the effect of imposing

liability on Backpage for advertisements placed by third parties; the utility of online

commercial advertisements to law enforcement in identifying and rescuing victims of

sex trafficking; sex trafficking and/or prostitution; causation or lack thereof; the

practices of Backpage, Craigslist, Facebook, Google, and other Internet providers as

such practices pertain to these issues, and rebuttal testimony of various plaintiff’s

experts including but not limited to Professor Roe-Sepowitz.

Dr. Levy’s anticipated testimony will be based on her quantitative and

qualitative research, training, academic and outside teaching, practical experience,

prior testimony, authorship of books, articles, and other academic or literary papers

published in her field of expertise, discussions with other experts and persons

responsible for editing and moderation at some of the subject internet providers, review

of the books, articles, studies, and seminars on these topics, and other related

experience. A copy of Dr. Levy’s CV is attached here to as Exhibit C.

4. Dr. Alexandra Lutnick, Ph.D.

The Defendants anticipate presenting expert testimony on the effect of imposing

liability on Backpage for advertisements placed by third parties; the utility of online

commercial advertisements to law enforcement in identifying and rescuing victims of

sex trafficking; sex trafficking and/or prostitution; causation or lack thereof; the

practices of Backpage, Craigslist, Facebook, Google, and other Internet providers as

such practices pertain to these issues, and rebuttal testimony of various plaintiff’s

experts including but not limited to Professor Roe-Sepowitz.

. . .

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The bases of Dr. Lutnick’s anticipated testimony is her quantitative and

qualitative research, training, academic and outside teaching, practical experience,

prior testimony, authorship of books, articles, and other academic or literary papers

published in her field of expertise, discussions with other experts and persons

responsible for editing and moderation at some of the subject internet providers, review

of the books, articles, studies, and seminars on these topics, and other related

experience. A copy of Dr. Lutnick’s CV is attached hereto as Exhibit D.

5. Dr. Kimberly Mehlman-Orozco, Ph.D.

The Defendants anticipate presenting expert testimony on the effect of imposing

liability on Backpage for advertisements placed by third parties; the utility of online

commercial advertisements to law enforcement in identifying and rescuing victims of

sex trafficking; sex trafficking and/or prostitution; causation or lack thereof; the

practices of Backpage, Craigslist, Facebook, Google, and other Internet providers as

such practices pertain to these issues, and rebuttal testimony of various plaintiff’s

experts including but not limited to Professor Roe-Sepowitz.

Dr. Mehlman-Orozco’s anticipated testimony will be based on her quantitative

and qualitative research, training, academic and outside teaching, practical experience,

prior testimony, authorship of books, articles, and other academic or literary papers

published in their field of expertise, discussions with other experts and persons

responsible for editing and moderation at some of the subject internet providers, review

of the books, articles, studies, and seminars on these topics, and other related

experience. A copy of Dr. Mehlman-Orozco’s CV is attached hereto as Exhibit E.

6. William Norman, J.D., L.L.M., a partner at Ord & Norman, and

Senior Adjunct Professor at Golden Gate University.

The Defendants anticipate presenting expert testimony on the lawful formation

of and lawful uses of offshore trusts.

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Professor Norman’s opinions will be based on his education, training, academic

teaching, practical experience, scholarship, presentations, and other related

experience. A copy of Professor Norman’s CV will be forthcoming.

7. The Defendants anticipate presenting expert testimony on law

enforcement officers’ investigation and prosecution of sex crimes, including but not

limited to prostitution, child prostitution, and other related crimes; how the assistance

of Internet site owners and employees render and impede assistance in these

investigations, the terminology used in the sex industry by legal escorts, strippers,

fetishists, and illegal prostitution. The expert(s) in this field have not yet been

retained, but may include former and/or current FBI agents and state law enforcement

officers who worked with Backpage and publicly and privately commended Backpage

on its cooperation. The correspondence, with the names, agencies and contact

information, relating to this cooperation is in the possession of the government, and

has not yet been fully disclosed, notwithstanding the government’s Rule 16 and Brady

obligations;

8. The Defendants anticipate presenting expert testimony on editing and

moderating Internet sites by the owners and employees of the sites, the challenges and

expense involved in editing and moderating, the evolving standards of editing and

moderating in the Internet provider community from 2004 to the present, the editing

and moderating practices of Backpage, Craigslist, Facebook, Google, and other

Internet providers and the reasonableness of Backpage practices, the state and federal

regulating standards relating to editing and moderating practices, impeachment of the

government’s experts and other related topics. The expert(s) in this field have not

yet been retained, but his/her/their anticipated testimony will be based on said experts’

training, academic teaching, practical experience, authorship of books, articles, and

other academic or literary papers published, discussions with other experts and persons

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responsible for editing and moderation at many of the internet providers in the United

States, review of the books, articles, studies, and seminars on these topics,

impeachment of the government’s experts, and other related experience.

9. The Defendants anticipate presenting expert testimony on the marketing

aggregation strategies and techniques used by newspapers both for print and online

publications to boost readership and to generate advertising revenue. The expert(s)

in this field have not yet been retained, but his/her/their anticipated testimony will be

based on said experts’ training, academic teaching, practical experience, authorship of

books, articles, and other academic or literary papers published, discussions with other

experts and persons responsible for marketing and aggregation strategies and

techniques at some of the subject Internet providers, review of the books, articles,

studies, and seminars on these topics, impeachment of the government’s experts, and

other related experience.

10. The Defendants anticipate presenting expert testimony on the lawful

formation of and lawful uses of offshore trusts as a matter of United States and

European Union law. The expert(s) in this field have not yet been retained, but

his/her/their anticipated testimony will be based on said experts’ training, academic

teaching, practical experience, authorship of books, articles, and other academic or

literary papers published, review of the books, articles, studies, and seminars on these

topics, and other related experience.

Defendants reserve the right to elicit testimony from their anticipated experts

regarding other matters that may arise during the course of trial, including testimony

presented during the government’s case-in-chief, matters raised during the

government’s cross-examination of any defense witnesses, and any other evidence

introduced by the government.

. . .

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RESPECTFULLY SUBMITTED this 14th day of March, 2019.

FEDER LAW OFFICE, PA

/s/ Bruce Feder

Bruce Feder

Attorney for Scott Spear

LIPSITZ GREEN SCIME

CAMBRIA, LLP

/s/ Paul Cambria, Jr.

Paul Cambria

Erin McCampbell

Attorney for Michael Lacey

BIENERT MILLER & KATZMAN, PLC

/s/ Thomas H. Bienert, Jr.

Thomas H. Bienert, Jr.

Whitney Z. Bernstein

Attorney for James Larkin

DAVIS WRIGHT TREMAINE, LLP

/s/ James C. Grant

James C. Grant

Attorney for James Larkin

BIRD MARELLA BOXER WOLPERT

NESSIM DROOKS LINCENBERG

& RHOW, PC

/s/ Gary Lincenberg

Gary Lincenberg

Ariel Newman

Gopi Panchapakesan

Attorneys for Jed Brunst

PICCARRETA DAVIS KEENAN

FIDEL, PC

/s/ Michael Piccarreta

Michael Piccarreta

Attorney for Andrew Padilla

. . .

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KARP & WEISS, PC

/s/ Stephen M. Weiss

Stephen M. Weiss

Attorney for Joye Vaught

. . .

. . .

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CERTIFICATE OF SERVICE

I hereby certify that on the 14th day of March, 2019, I electronically transmitted

the foregoing to the Clerk of the Court via the CM/ECF system for filing and

transmittal of a Notice of Electronic Filing to the following CM/ECF registrants:

Kevin Rapp: Kevin.Rapp@usdoj.gov

Andrew Stone: Andrew.Stone@usdoj.gov

Margaret Perlmeter: Margaret.Perlmeter@usdoj.gov

John Kucera: John.Kucera@usdoj.gov

Reginald Jones: Reginald.Jones@usdoj.gov

Peter S. Kozinets: Peter.Kozinets@usdoj.gov

Attorneys for the United States

Anne Chapman: anne@mscclaw.com

Lee Stein: lee@mscclaw.com

Paul Cambria: pcambira@lglaw.com

James Grant: jimgrant@dwt.com

Erin McCampbell: emccampbell@lglaw.com

Robert Corn-Revere: bobcornrevere@dwt.com

Ronald London: ronnielondon@dwt.com

Janey Henze Cook: janey@henzecookemurphy.com

John Littrell: jlittrell@bmkattorneys.com

Kenneth Miller: kmiller@bmkattorneys.com

Whitney Bernstein: wbernstein@bmkattorneys.com

Michael Piccarreta: mlp@pd-law.com

Stephen M. Weiss: sweiss@karpweiss.com

Michael Kimerer: mdk@kimerer.com

Rhonda Neff: rneff@kimerer.com

Tom Bienert: tbienert@bmkattorneys.com

Gary Lincenberg: gsl@birdmarella.com

Ariel Neuman: aneuman@birdmarella.com

KC Maxwell: kcm@kcmaxlaw.com

David Wakukawa: dsw@kcmaxlaw.com

Seetha Ramachandran: Seetha.Ramachandran@srz.com

Attorneys for the Defense

By: /s/ A. Jones

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