Altomare Deposition 26 Jun 08 OCR Transcript Extract 9
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Q. Mr. Altomare, I looked through the Wachovia checks from your -- from actually the Universal Express account. I am switching gears on you. I am talking about Universal Express now. And there is a series of payments that I wanted to ask you some questions about. In March of 2006 you wire transferred $49,000 and then $50,000 to Rose & Rose, P.A. I assume that's a law firm?
A. That may be the hundred thousand dollars that we were looking for earlier in my testimony about the deposit on the home, the hundred dollars.
Q. Do you recall directing anyone at Universal Express to transfer those funds to Rose & Rose?
A. Yes.
Q. Do you recall the purpose for those transfers?
A. I believe it was for the down payment of the home. As I testified earlier, I thought it would be, but it might not have shown up that way. It went to Rose & Rose.
Q. I am not wanting to ask about your 2 privileged conversation with Rose & Rose, but had you engaged Rose & Rose to provide legal services for Universal Express in March of 2006?
A. Oh, yes.
Q. As to a named case?
A. any cases.
Q. So for us to be able to know the purpose of these payments, we would need to go to Rose & Rose and get their invoice?
A. I --
MR. TIFFORD: No, no. Just a minute. I can answer this and make it short and sweet. The purpose of an engagement, the date of an engagement, the amount paid for an engagement are not privileged in the federal system. So unless there is a particular state law that might do it, I don't think the state law would override the federal rule of evidence in any event. I will not object to a question. I will not instruct a do not answer instruction; if you limit your question to dates of engagements, identity of the attorney or attorneys engaged and/or the subject of the engagement.
MS. HUGHES: And you're not objecting to me making those questions of Mr. Altomare or someone at Rose & Rose?
MR. TIFFORD: Oh, no, you can ask -- you would have to ask Mr. Altomare. He's the client. Only hecould give up the privilege, and, as his attorney in this case, and with my working knowledge with the rules of evidence such as they are, and they are somewhat extensive, I am going to not delay the proceeding or your inquiry by delaying your obtaining your answers from the principal, the client himself, Mr. Altornare, today.
Q. Did you engage Rose & Rose to do legal work for you during 2006?
A. Could you repeat the question? When you say "you," do you mean me personally or Universal Express?
Q. Thank you for that correction. Did Universal Express engage Rose & Rose to do legal work for them during 2006?
A. May I just comment on the word "engage." We never paid Rose & Rose before they began working, if that's what you people mean -- if you mean by "engage." We did give them a number of small cases, which were handled through my general counsel and Rose & Rose, and then they would give us an invoice after -- or the next month or when the case was resolved. The monies that you're speaking of would never have been for an engagement. That probably was at the direction of Mr. Rose for the purchase of that apartment, that hundred thousand dollars that you asked for before.
MR. TIFFORD: Hold it, let me say this into the record, too. Mr. Altomare, the word "engage," when speaking about attorneys and clients, universally means to commence a hiring of. It has nothing -- no impact on the terms of being hired, requiring payment in advance, along the way, periodically, in lump sum at the end, at lump sum in the beginning. It all depends on the nature of the engagement. So think of the word "engagement" in terms of the word "hire," and forget, in responding to the questions put, forget about what the particular case for which the lawyers were hired may have involved payment terms, forget the payment terms. They're irrelevant.
Q. So I'm trying to determine, when did you hire Rose & Rose during 2006 or when did Universal Express hire them?
A. Well, we moved into the floor where Rose & Rose became our subtenant. Rose & Rose was our subtenant. So when we moved into the third floor of 5295, because we had previously been on the first and the fourth, that's when we hired them. That was the first time we met them. So I don't know if it was 2005 or 2006.
Q. In the Universal Express checks or wire transfers for March of 2006, there are these two payments we just spoke about. What was the subject of the engagement, the reason for hiring them and giving them these funds?
A. I would say that I believe that was not any hire. That was -- they were going to represent me in the purchase of the Toscano apartment and I needed to give them the funds for the closing.
Q. So acting like your agent in that transaction?
A. That's the way they said it had to be done.
Q. Were there any -- was there any litigation that was going on in March of 2006 for which this would be a payment of their legal fees?
A. They never were that expensive, so I do not believe so.
Q. Starting in April of 2006, there are a series of payments, the first being $50,000 on April 3, 2006, the second being on May 1, 2006, being $25,000, and other payments to a man named Hassan Mohamed. What were those payments for?
A. I believe that he was a finder on the investors that we had located in the Gulf region, and I think he received a 5 or a 10 percent commission on, and that's how we paid him.
Q. Does Mr. Mohamed hold any of these monies on your behalf?
A. No, ma'am.
Q. On May 9, 2006 there was a wire into the Universal Express bank account at Wachovia from something called Bank Sal,S-A-L, then it's O-P-P-E-N-H-E and it cuts off.
A. Yeah, again you're welcome, when Mr. Gunderson has all of those records, as well as Saadia, or the receiver, because I do not know the names of the corporations that would have wired those funds. How much was it for, ma'am?
Q. $200,000.
A. No, I don't recall. We had many -- many interested investors.
Q. Did you ever have an account at Oppenheimer?
A. No, ma'am.
Q. Did you ever have an account at something called Bank Sal?
A. No, ma'am.
Q. On May 19, 2006, Universal Express wire transferred to Barbara Altomare $50,000. What was the reason for that payment in May of 2006?
A. I'm sure it was against my compensation account and was -- I don't know what the $50,000 was used for at that time. But we say Barbara, but that would be both of our names are on that account, and I think it kicks off where it says "Barbara" and then they don't have the room for "Richard," because it's a joint account.
Q. Mr. Altomare, if we went back and looked at the Compupay record of your payroll checks, I don't see any entries like this one where $50,000 is being entered -- is being paid to your account. I don't see that kind of accounting --
A. I don't know how the account department handled those. Some of it was for previous salaries, and some of it would be ongoing salaries. All I know is at the end of the year, every dollar was accounted for and every tax dollar was paid. And that was in 2006, correct?
Q. Correct.
A. Yeah.
Q. Similarly along those lines, on April 13, 2006 there was a wire transfer of $325,000 to Les Bijoux.
A. Yeah, that would be for that ring that we had discussed to the point of nausea.
Q. But again, that I don't see on the Compupay as a $325,000 credit to your account.
A. Yes. I don't think it would have been done with Compupay, but I think Saadia and the controller can better discuss that with you. But it was compensation.
Q. Did you ever have an account with something called BZ Banc, B-A-N-C, Corporation?
A. No, ma'am.
Q. In July of 2006 Universal Express issued a check 4185 to Rstar, one word, the letter R, then "star," Life Insurance in the amount of $1,661.40. Do you know why Universal Express made that payment?
A. Well, I did have a key man policy, which Universal Express was the beneficiary. That could be that, but I'm sure the controller could better tell you. I don't know the name of the insurance company.
Q. Do you know if that was a term or a whole life policy?
A. I know that was a term.
Q. Mr. Altomare, in August of 2006, Universal Express wrote a check number 4275 to Volvo Body Shop for $2,376.
A. It must have been one of our vans or one of our trucks that had an accident. I don't know specifically.
Q. I have seen during 2006 a series of checks to something called the Hartford, H-A-R-T-F-O-R-D; for example, on August 1 there is a check for $810.04.
A. There were some of our employees, I may be mistaken here, there were some of our employees out of state and there may have been some health policies that required direct payments from the company. So it could be that. We had some New York employees and yet we had a Florida medical program.
Q. On August 8, 2006, Universal Express wire transferred $35,000 to someone named Sissredi Claudio. S-I-S-S-R-E-D-1, capital C-L-A-U-D-I-0.
A. May I see that?
Q. Yes (handing).
A. I am sorry. At this moment, I don't recall the name, nor do I have any beneficial interest in that gentleman, if it's a gentleman.
Q. Mr. Altomare, during 2006 there were several payments made by Universal Express to an entity called First Capital Lending LLC. The first one that I see is a check on July 12, 2006, check number 4184 in the amount of $250,000.
A. Yes.
Q. Was that the point in time when your relationship with First Capital Lending started?
A. Well, actually First Capital moved into our first floor space, and they came to us with a number of business transactions, and I believe that there is some documentation on that first $250,000, which was a down payment on some gasoline stations that we had a strong interest in purchasing because our Middle East investors did like the fuel and gasoline business, so it was a thought we might be able to go into something that they were more comfortable with.
Q. This is a payment made in July of 2006. Is that roughly the time frame when your relationship with First Capital Lending started?
A. I think they were there for a period of time before we paid their first $250,000. I can't say how many months, six months, five months, eight months, but that's all I recall.
Q. Did you have prior dealings with them on other deals before the gas station purchase?
A. No, ma'am.
Q. That $250,000 payment was followed with an August 18, 2006 payment of $50,000, and an August 25, 2006 payment of a second $50,000; were those in furtherance of the gas station purchase?
A. Not that particular gas station purchase. Additional gas station purchases. There were about five of them at the -- at the peak where we were attempting to go to contracts and close on. Some of those payments -- and I don't have my records in front of me, and if you have any, I'd be more than happy to discuss them. Some of them were for appraisals on the gasoline stations. So that would have been what I would have termed to be soft money, expenses that we did not anticipate back. But the majority of the capital was deposits that I did expect that we would have back or it would be credited at the closing of those particular gasoline stations.
Q. Did the gasoline stations ever close?
A. They never had the opportunity to close. The company was closed before the transactions were —
MR. TIFFORD: Just answer the question.
A. No. -- before the transactions were completed.
Q. Does First Capital Lending Company owe any money to Universal Express?
A. I believe they do.
Q. What do you believe they owe?
A. I'd have to look at all the records, but I believe if those transactions were not completed, that money should come back to Universal Express. I think it's a minimum of $600,000. Maybe higher.
Q. The $600,000 figure you're speaking of were all monies that Universal Express transferred to First Capital Lending?
A. Yes, ma'am.
Q. It's my understanding that there was an escrow agreement for First Capital Lending to hold a portion of the money; do you recall signing an escrow agreement with them?
A. Never, never. Mr. Rose -- no.
Q. Did you ever instruct Mr. Garrahan at First Capital Lending to break the escrow and use those monies to pay expenses?
A. No.
MR. TIFFORD: Could I ask a question on cross instead of losing it in the mass of things? Mr. Altomare, do you have a clear memory one way or the other whether or not there was a written escrow agreement relating to any $250,000 delivered to First Capital?
THE WITNESS: Could you repeat the question?
MR. TIFFORD: As you sit here today, sir, do have a clear memory one way or the other whether or not there was a written escrow agreement with First Capital relating to any of the monies put up in escrow?
THE WITNESS: I do recall a $250,000 document that was signed by both parties.
MR. TIFFORD: Do you recall any other written escrow agreements related to any of the other monies that you think today, at a minimum, is $600,000 due back to Universal Express by First Capital?
THE WITNESS: I don't have a knowledge of the subsequent documents, but I do know the first one. I left the rest to my general counsel and my controller.
MR. TIFFORD: If I understand you correctly, sir, you're saying today that you have a clear memory of at least one written escrow agreement; is that correct?
THE WITNESS: Yes, sir.
MR. TIFFORD: And that that agreement subject is the sum of $250,000?
THE WITNESS: Yes, sir.
MR. TIFFORD: And that those funds, per that escrow agreement, were due to be returned to Universal Express in the event the conditions relating to the escrow allowed the breaking of escrow and the demand for the return of the money, a demand for the return of the money?
THE WITNESS: Yes, sir. Yes, sir.
MR. TIFFORD: Thank you.
MS. HUGHES: You're welcome.
(Recess taken.)
BY MS. HUGHES:
Q. Mr. Altomare, in looking at the Universal Express bank account for 2006, I see a number of different payments, some of them we've talked about. One is to something called the Oxford Health Plan. What did that cover?
A. It either covered our New York employees or it covered some of our Florida people. I would have to say that my controller who handled the medical coverage would be better able to answer that.
Q. So it was for medical coverage, not a kind of life insurance
A. Oh, no, ma'am.
Q. Then earlier today you had mentioned a company called the Guardian, which there are a number of payments to them. I've done a little homework. It appears that Universal Express had a dental plan for that.
A. I think I had mentioned Guardian as the dental plan previously.
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