Mr. Hawa, counsel for Sandra Elsley, is not havi
Post# of 43066
Mr. Hawa, counsel for Sandra Elsley, is not having a good time here:
477 Q. Just -- I am going to read an e-mail.
MS. KIS: Pardon, counsel, is this an
e-mail that is found in any of the records?
MR. HAWA: In any of which records?
MS. KIS: One of the four that you filed
or either of ours?
MR. HAWA: No.
MS. KIS: Is it a new document that you
John Bordynuik - 90
said you would not be putting to my client?
MR. HAWA: It is equivalent to that
medical report that you stole and surprised us with
yesterday.
MS. KIS: Is there an allegation of
theft now, counsel?
MR. HAWA: The medical report was taken
right off a computer, and it didn't belong to you to
bring to the agreement -- to the --
MS. KIS: Counsel, are you giving
evidence now on the record?
MR. HAWA: Anyway, I am going to read an
e-mail.
MS. KIS: Well, I think what you need to
do, counsel, is tell me which of these newly produced
e-mails you are going to put to Mr. Bordynuik so I can
decide whether one of these documents are appropriate to
put to him given the position that I put on the record
at the beginning of these examinations.
BY MR. HAWA:
478 Q. You will acknowledge that it said it
doesn't accept that they were loans from the company?
A. Pardon?
479 Q. Sandra didn't really accept them as
loans, did she?
John Bordynuik - 91
A. Yes, she did. She signed them as such
and she received the money on the same day that she
signed those loans and she did them with Steve Doede and
Brian Sebrun. Our I.T. guy actually witnessed them.
480 Q. But she was not being paid for all her
services?
A. Yes, she was. She was paid in 2008 when
she took these loans. She look them in 2008.
481 Q. Prior to that, she was not paid. She
was given credit for that?
A. No. Well, she was in stock, I guess you
could say. The 13%, she went from 1 to 13.
482 Q. Now, this is an e-mail from John
Bordynuik to Sandra dated December 12th. I sent you a
copy of that?
MS. KIS: Is this the bundle of e-mails
you would have sent me at 11:26 p.m. last night?
MR. HAWA: Yes, the bigger one.
MS. KIS: The bigger bundle of the 93
pages, um --
MR. HAWA: You asked for it.
MS. KIS: Counsel, you have an
obligation to produce these as part of your initial
record. You've had them in your possession.
MR. HAWA: No, I have an obligation to
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produce them as part of our Affidavit of Documents not
as far as this motion is concerned.
MS. KIS: That's right. That is why I
am objecting to asking questions with respect to them.
MR. HAWA: This is a document that I
want to put to Mr. Bordynuik and --
MS. KIS: What is the document, counsel?
MR. HAWA: You can have a look at it and
object to it if you wish. It's an e-mail dated
December 12th. It's about three or four pages in. If
you, I think that you have it there. Do you have it
there?
MS. KIS: It's, "Hi, Sandra, attached
are the agreements."
MR. HAWA: Yes.
MS. KIS: Counsel, this is in our
record.
MR. HAWA: This is in your record?
MS. KIS: Yes. Why don't we reference
the record.
MR. HAWA: All right. The
supplementary?
MS. KIS: Yes. I think it's tab H,
counsel.
MR. HAWA: Okay. Referencing at tab H,
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of the supplementary responding motion record. E-mail
from John Bordynuik, supplementary motion record, sorry,
of the defendant. E-mail from John Bordynuik to Sandra
dated December 12th, 2008.
"Hi, Sandra, attached are the
agreements. They are quite straightforward. Mutual
non-disparagement, confidentiality, and no more nonsense
on consolidated loan agreements and amounts, since it
looks bad."
What does that mean "since it looks
bad"?
A. The problem that we had at that time
that we didn't know was that loans made to an officer of
the company, prohibits the company from going public
where it creates a lot of problems because of Enron and
Worldcom would give loans to their executives and do
exactly what you were insinuating, trying to "forgive
them or get rid of them." That's not allowed under the
SCC. So what I was attempting to do there was actually
purchase the loans myself through the sale of my own
stock, and then she would owe me the money instead of
the company. It was a significant problem brought to my
attention in December. I went, crap, this is a big
problem. We didn't know about it.
483 Q. "If I can purchase them from the
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company" and why did you put that in quotation marks
"then I will" purchase the loans from the company?
A. If I can, to get them off the damn books
so that it doesn't prohibit us from going public.
484 Q. Well, you don't really mean purchase
because --
A. Well, because I am purchasing them from
the company, but it's -- that's something I'd have to
do. I would have to actually sell some of my shares,
purchase the loans from the company at face value, and
then I would own the loans.
485 Q. And then you would own the loans and you
would be collecting from her?
A. Yes.
486 Q. But in a sense -- because that's an
honest to goodness purchase, isn't it, if you did
purchase them from the company?
A. I am calling them purchase. It's a
related shareholder purchase. I think it's called an
arm's length transaction or something like that. It
still shows up. It's not as bad, at least, at least the
loan has been paid to the company so it's not
outstanding as far as the company goes and as far as the
public filing goes. It would be the same as if when
Kenneth Lay at Enron borrowed a bunch of money, if
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someone paid those loans off of the company and took
them personally, the shareholders of the company then
wouldn't have that loan overhanging.
487 Q. Did you have a bank account in 2007,
2008 while you were living with Sandra Elsley, personal?
A. Yes.
488 Q. Did you have any money in the bank
account?
A. Yes.
489 Q. Were you paying any of your ongoing
expenses from that bank account?
A. Yes, I was, all of them. I had
insurance. I had all kinds of things.
490 Q. Sandra Elsley was not financing all of
your lifestyle and your children?
A. Absolutely not.
MR. HAWA: Could you provide me with a
copy of your bank statements at the time.
MS. KIS: I'll take it under advisement.
-- UNDER ADVISEMENT
BY MR. HAWA:
491 Q. 2007, 2008, while you were living with
Sandra Elsley, did you have one personal account?
MS. KIS: Counsel, I don't think this
line of questioning is relevant. I'll take it under
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advisement.
-- UNDER ADVISEMENT
492 Q. How many accounts did you have?
MS. KIS: I refuse it.
-- REFUSAL
BY MR. HAWA:
493 Q. Did you have any personal accounts?
MS. KIS: Well, he answered the
question.
A. Yes, of course.
MR. HAWA: So you are taking it under
advisement whether to provide me with a copy of that
account in 2007 and 2008 while you were living with
Sandra Elsley?
A. Yes.
-- UNDER ADVISEMENT
BY MR. HAWA:
494 Q. Did the $80,000 you paid to Nicole
Wright come from your personal bank account as well?
A. Yes, it came from a wire transferred
from my personal bank account, and I produced that in my
Affidavit of Documents with the purchase agreement
actually.
MR. HAWA: Is it in your materials?
MS. KIS: I don't think so.
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MR. HAWA: So it will be provided in
your Affidavit of Documents?
A. Oh, absolutely. The purchase agreement
with Nicole and proof to the lawyer. I had to provide
it anyway.
495 Q. It came from your personal bank account?
A. Yes, it did.
496 Q. With which institution?
MS. KIS: You will see the document when
you see it, counsel. Why is that relevant?
MR. HAWA: Will you undertake to provide
that for this examination?
MS. KIS: Yes.
EVERYONE, read the full deposition please.
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