Part 3: 07/15/2008 Doc 339
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Additional Fixed Monthly Overhead and Other Expenses
Bad judgmentally driven decisions aside, there were and are additional obligations predating entry of the disgorgement judgment contributing to Altomare’s nonliquidity and inability to generate liquidity.[20] The first consists of two automobile leases entered into substantially prior to the appointment of the Receiver. A former third lease which required monthly payments of $3,220.88 (DX-13; RAA-0451) was terminated by Mrs. Altomare’s surrender of the vehicle during Altomare’s current incarceration. (DX-57).
[20] The district court acknowledged Altomare has paid $60,000.00
The second and third leases required monthly payments of $910.66 and $1,876.98, respectively (DX-14; RAA-0452 and DX--15; RAA-0453), but also are in arrears. (DX-57).
The second circumstance that prevented liquidity was the build-out and finishing of the condominium in order to facilitate its sale at maximum potential selling price. Combined, the build-out expenses to Weinstein Group totaled $647,984.33, including sales tax leaving an unpaid balance due of $12,129.34 (DX-9; RAA-0394-0395); Depo Ex. 28); Harmony Home Systems $98,970.80 (DX-10; RAA-0424), and to Benchmark Building, $129,847.82, including a current balance due as of January 8, 2008. (DX-11; RAA-0440-0445).[21]
[21] Benchmark and Harmony’s mechanic’s liens totalling $37,214.16, plus accrued interest, also encumbering the condominium title, have been mentioned previously. Also see DX-50, RAA-2096, 2130-31.
Altomare continues to be pursued for collection personally by FIA Card Services for over $47,000.00 based upon his guarantee of corporate charge card expenses (DX-17; RAA-0488), North Fork Bank for approximately $8,500.00 as of November 20, 2007 (DX-18; RAA-0489-0494), and others all to an approximate total of $140,000.00. (DX-56 composite).
The Liquidation of Personal Jewelry
In September, 2007, Mrs. Altomare decided to sell her jewelry in order to raise liquidity shortly after the appointment of the Receiver. Altomare contributed most of his jewelry to that effort (Tr. at 38-42), except for one men’s watch.[22]
[22] The watch is held by me as collateral; it is discussed more fully infra.
Altomare testified in the form of an accounting of the proceeds from that sale. The bank records complete the accounting. In principal measure, $200,000.00 of the $571,000.00 received for the sale of the jewelry, the overwhelming portion of which was Mrs. Altomare’s, was deposited by Mrs. Altomare in Commerce Bank. (Tr. 39-40; DX-19; RAA-0495-0504). Evidenced by RAA-0495-0504, all large disbursements were devoted to the payment of one or more of the Toscano condominium contract vendors and for attorney’s fees.
Starting with the sale of the jewelry (RAA-0501-0502) $150,000.00 of the $200,000.00 was paid to me for attorney’s fees for two different civil actions: these district court proceedings and the first pending appeal to the Second Circuit (Docket No. 07-2407-cv). Additional attorney’s fees in the sum of $50,000.00 in September, 2007 to DLA Piper US, LLP law firm (DX-1; RAA-0053, check number 4261 and DX-59, RAA-1021). The remaining, relatively minor disbursements are itemized at(RAA-0503-0504). The balance, $371,000.00, was deposited by Mrs. Altomare into the Wachovia joint checking account (account no. 5480) in installments as needed by her to issue checks or cover automatic debits for expenses, and additional attorney’s fees to me. (DX-1 at RAA 0052-0076; RAA-2351, 2355, 2362, 2370, 2374, 2378).[23] The disbursements evidenced by DX-1 at RAA 0052-0076 and RAA-1021 and DX-59 corroborate Altomare’s relevant testimony.
[23] DX-1, RAA-0001-0051 predate the jewelry sale.
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07/15/2008 339 RESPONSE in Opposition re: 191 MOTION for Sanctions and Entry of Contempt against Universal Express, Altomare and Gunderson. Response to Plaintiff's Second Submission on Issue of Contempt and Second Motion for Relief from Contempt. Document filed by Richard A. Altomare. (Tifford, Arthur) (Entered: 07/15/2008) |
