I found this exchange regarding the "freeze" to be interesting:
BY MR. MONTAL:
3 Q. Now, I'd like to direct your attention to the --
4 A. Well, I'm going to have to find it here for you.
5 Q. -- first page of this document --
6 A. Right.
7 Q. -- which is if you look on the top of it, it's for the
8 week ending April 30 (sic), 1998.
9 A. Correct.
10 Q. And if you look in the far most right-hand colmm where
11 it says change percent, do you see that colmm?
12 A. Yes.
13 Q. And do you see that it is not a bunch of zeros
14 (indiscernible).
15 THE COURT: Did you say for the week ending 4/30?
16 MR. MONTAL: Well, I --
17 THE COURT: It's 4/3.
18 MR. MONTAL: Oh, I'm sorry, your Honor. You're
19 absolutely right. It's April 3rd, 1998.
20 THE WITNESS: Yes. It's -- it's -- it's not all
21 zeros.
22 BY MR. MONTAL:
23 Q. And that's because, for example, looking at the fourth
24 entry down, which I believe corresponds to --
25 A. (Indiscernible).
ASSOCIATED REPORTERS OF NEVADA (702) 382-8778
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1 Q. -- an entry called BHC Securities (phonetic) if you
2 look at the name of the participant on the left-hand column.
3 Do you see that?
4 A. Yes.
5 Q. Do you see this document indicates that on 3/27/98,
6 they had 800 shares?
7 A. Correct.
8 Q. And by the end of the week, Friday, 4/3/98, they had
9 zero?
10 A. Correct.
11 Q. And so this indicates that stock moved out of the BHC
12 account at DTC, correct?
13 A. Correct.
14 Q. And that's true for quite a few other accounts that are
15 listed on this document as well --
16 A. Correct.
17 Q. -- for the week of 4/30/98 (sic).
18 A. Correct.
19 Q. Oh, excuse me. 4/3/98. And that's true as well for
20 the following --
21 A. Correct.
22 Q. -- weekly position listing of 4/10/98.
23 A. Correct.
24 Q. And that shows a series of deposits for some
25 participants and withdrawals for others.
ASSOCIATED REPORTERS OF NEVADA (702) 382-8778
2O
1 A. Correct.
2 Q. And if we turn to the position listing for the week
3 ending 8/14/98, and I'd say that's probably about three
4 quarters of the way through the document --
5 THE COURT: Eight what?
6 MR. MONTAL: 8/14/98.
7 BY MR. MONTAL:
8 Q. That shows a bunch of zeros, Mr. Sylver, on the
9 left-hand colum, correct?
10 A. That's correct.
11 Q. And that shows no activity whatsoever for that week
12 through the DTC system, correct?
13 A. Correct.
14 Q. And that would indicate that there's a freeze. That
15 nothing --
16 A. No.
17 Q. -- can happen.
18 A. No.
19 Q. Well, this indicates that there's no --
20 A. The freeze is when the people can't get their stock out
21 of the system.
22 Q. This indicates --
23 A. This is -- that's internal.
24 Q. This indicates that there's no -- this indicates that
25 there is no transfers going in or out of DTC during that
ASSOCIATED REPORTERS OF NEVADA (702) 382-8778
21
1 week, correct?
2 A. No. It indicates there's no stock being moved in
3 between brokers.
4 Q. And the same thing is true for the following week,
5 8/21/98.
6 A. Indicates the DTC is not allowing transfers --
7 Q. That --
8 A. -- in between brokers.
9 Q. That's right. That there is no transfers being
10 allowed. Now, if the record mentioned to 5/22/98, and
11 that's about halfway through. And there's some writing on
12 this document. And I wanted to ask you. Is this your
13 handwriting?
14 A. Yes.
15 Q. It says letter sent to J.B. Oxford, not to move stock,
16 and there's an arrow to Wednesday, 5/20/98?
17 A. Right.
18 Q. When did you write that?
19 A. When we sent it on May 20th or when we got this sheet.
20 Q. So like approximately --
21 A. May 20th.
22 Q. -- a couple of days later after you got the sheet, you
23 immediately wrote that down.
24 A. Correct.
25 Q. And then there's an indication that says Thursday's
ASSOCIATED REPORTERS OF NEVADA (702) 382-8778
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1 stock (indiscernible).
2 A. Oh, there's something missing. There's a lot more
3 writing on the other one. This is about the -- there's a
4 lot more writing on one of them. I meant lots of notes. It
5 must not have come out.
6 MR. MONTAL: Your Honor, then we call for the
7 original of the document if -- I mean, here we are in a
8 situation, again, where for whatever reason, the photocopy
9 machine is not picking up. There's an allegation the
10 photocopy machine is --
11 THE COURT: Do you have the original of this,
12 Counsel?
13 MR. LANDISH: Which document would that be? I
14 have the original DTC sheets.
15 MR. MONTAL: And --
16 THE COURT: Okay. Why don't you -- and what we're
17 looking at is --
18 MR. MONTAL: The one with the original writing.
19 THE COURT: -- for the week ending 5/22/98; is
20 that correct?
21 MR. MONTAL: Yes.
22 (Colloquy not on the record.)
23 THE COURT: They seem to be in a sequential order,
24 so that --
25 MR. LANDISH: I'm sorry, your Honor?
ASSOCIATED REPORTERS OF NEVADA (702) 382-8778
23
1 THE COURT: They seem to be in a sequential order.
2 MR. LANDISH: No. I have it. I'm --
3 MR. MONTAL: I believe Mr. Landish is looking to
4 see whether he has the one with the original writing on it.
5 MR. LANDISH: I cannot say I have an original.
6 Ail the copies appear to me to be the same.
7 THE COURT: Okay. Do you want to use that to
8 examine the witness with?
9 MR. MONTAL: It's the same exact as what I have
10 right here.
11 THE COURT: Well, why don't you verify that for
12 the record.
13 BY MR. MONTAL:
14 Q. Looking at the entry for 5/22/98 of the document that
15 Mr. Landish, plaintiff's counsel, just handed to me, it is
16 an exact copy of the one I've shown the witness; is that
17 correct, Mr. Sylver?
18 THE COURT: Is that correct?
19 THE WITNESS: Yeah. But the other writing on
20 there -- there was more writing on here, but it's just
21 notes. It's not pertinent to anything.
22 MR. MONTAL: Your Honor, I move to strike that.
23 That was nonresponsive to any question.
24 THE COURT: Well, the answer is, yes, it's
25 identical to the one that has been received into evidence --
ASSOCIATED REPORTERS OF NEVADA (702) 382-8778
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1 MR. MONTAL: (Indiscernible).
2 THE COURT: -- that particular page.
3 MR. MONTAL: Right. And this is, your Honor,
4 Plaintiff's exhibit which had been represented to the Court
5 as being a complete and accurate document that's upon --
6 that it was put into evidence.
7 THE COURT: I understand. But for the record, the
8 witness has indicated that the two pages appear to be
9 identical.
10 BY MR. MONTAL:
11 Q. Okay. And the only writing that's on this page is that
12 a contemporaneous record, that you sent the letter to J.B.
13 Oxford not to move his stock, correct?
14 A. I don't know what you said, but there's -- I said do
15 not -- yeah. We sent a letter to J.B. Oxford not to move
16 the stock; that's correct.
17 Q. It doesn't say anything about sending a letter to DTC
18 not to move the stock, correct?
19 A. It does not.
20 Q. And it doesn't say anything about making a call to DTC
21 not to move the stock, correct?
22 A. Correct.
23 Q. And the same is true for the next page which is the
24 week of May 29, 1998. There's no writing whatsoever on
25 that.
ASSOCIATED REPORTERS OF NEVADA (702) 382-8778
25
1 A. That is correct.
2 Q. So while you made a contemporaneous record of sending a
3 letter to J.B. Oxford, there's no contemporaneous record
4 that's part of this Exhibit 1 that showed that anything was
5 sent to DTC, correct?
6 A. That's correct.
7 MR. MONTAL: Your Honor, I believe that's it.
8 THE COURT: Okay.
9 MR. MONTAL: Thank you. |
