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                  UNITED STATES BANKRUPTCY COURT

    

             FOR THE NORTHERN DISTRICT OF CALIFORNIA

    

         BEFORE THE HONORABLE ARTHUR S. WEISSBRODT, JUDGE

    

    

     In Re:                             ) Case No. 98-51326-ASW

                                        ) Chapter 13

                                        )

     HOWARD KEITH HENSON,               )

                                        ) TRIAL

                                        ) Volume II

                         Debtor.        ) Pages 180 to 362

                                        )

                                        )

                                        ) Monday, September 30, 2002

                                        ) San Jose, California

    

     Appearances:

    

     For the Debtor:          Law Offices of Stanley A. Zlotoff

                              By:  Stanley A. Zlotoff, Attorney at Law

                              300 South First Street, Suite 215

                              San Jose, California  95113

    

     For Creditor Religious   Moxon & Kobrin

     Technology Center:       By:  Helena K. Kobrin, Attorney at Law

                              3055 Wilshire Boulevard, Suite 900

                              Los Angeles, California  90010

    

                              McPharlin, Sprinkles & Thomas

                              By:  Elaine M. Seid, Attorney at Law

                              10 Almaden Boulevard, Suite 1460

                              San Jose, California  95113

    

                              Paul, Hastings, Janofsky & Walker LLP

                              By:  Samuel D. Rosen, Attorney at Law

                              75 East 55th Street

                              New York, New York  10022-4597

    

     Electronic Court         United States Bankruptcy Court

     Recorder:                Clerk of the Court 

                              LaKeska Blue and Liz Armendariz

                              280 South First Street, Room 3035

                              San Jose, California  95113

                              (408) 535-5003

    

     Certified Electronic     Palmer Reporting Services

     Transcriber:             P. O. Box 30727

                              Stockton, California  95213-0727

    

            Proceedings recorded by digital recording;

          transcript produced by federally-approved transcription

service.                             I N D E X

    

    

    

    

    

     Witnesses:

                              Direct   Cross   Redirect   Recross

         

     Victoria Arel Lucas

    

      By Mr. Zlotoff

      (resumed):               183

    

      By Mr. Rosen:                     343

    

    

    

    

     Exhibits:                               Received in Evidence

    

     Creditor's Exhibits 1 - 14, 16 - 18,

      20 - 22, 25, 27 - 37, 39 - 44, 46 - 48,

      53 - 62, 65 - 69, 72, 73, 75 - 78,

      80 - 84, 86, 88 - 100, 104, 107, 109,

      111 - 116, 121, 122, 124 - 130,

      133 - 135, 140 - 160, 164 - 168, 171,

      173, 174, 177 - 180, 182, 183,

      186 - 189, 191, 194 - 207, 209 - 213,

      215, 216, 221, 222, 224 - 226,

      239 - 234, 236, 238, 249 - 251,

      253 - 256, 257, 258, 260 - 262,

      264 - 270, 272 - 279, and 286:                   page  248

    

    

     Debtor's Exhibits A and B:                        page  286

    

     Debtor's Exhibits C and D:                        page  287

    

     Debtor's Exhibit F:                               page  288

    

     Debtor's Exhibits G and H:                        page  289

    

     Debtor's Exhibit L:                               page  286

    

    

    

    

    

    

                                                                     182

 

 1        Monday, September 30, 2002                10:41 o'clock a.m.

 

 2                    P R O C E E D I N G S

 

 3             THE CLERK:  Please rise.  This is the United States

 

 4   Bankruptcy Court for the Northern District of California.  Court

 

 5   is now in session.

 

 6             THE COURT:  Good morning, ladies and gentlemen.

 

 7   Please be seated.

 

 8             This is the case of Keith Henson.  May I have

 

 9   appearances of counsel.

 

10             MR. ZLOTOFF:  Stan Zlotoff for the debtor.

 

11             MR. ROSEN:  For creditor Religious Technology Center,

 

12   Samuel D. Rosen, Paul, Hastings, Janofsky and Walker.

 

13             THE COURT:  Good morning, counsel.

 

14             MR. ROSEN:  Good morning, Your Honor.

 

15             MS. SEID:  Elaine Seid, McPharlin, Sprinkles and

 

16   Thomas, also appearing on behalf of the creditor.

 

17             MR. ROSEN:  And, Your Honor, Ms. Kobrin, as you can

 

18   see is not physically here.  She's on her way, so we will note

 

19   her appearance as well.

 

20             THE COURT:  Yeah.

 

21             Shall we call Ms. Lucas to the stand?

 

22             MR. ZLOTOFF:  Yes.  Why don't we do that, Your Honor.

 

23             Ms. Lucas.

 

24   VICTORIA AREL LUCAS, DEBTOR'S WITNESS, PREVIOUSLY SWORN

 

25             THE COURT:  Good morning, Ms. Lucas.  You were sworn

 

                                                           183

 

 1   in yesterday.  I remind you that you're under oath.  You may

 

 2   take the stand.

 

 3             MR. ROSEN:  Friday.

 

 4             THE COURT:  Oh, it was Friday.  That's right.

 

 5             That's fine.  Thank you.

 

 6             Go ahead, counsel.

 

 7             MR. ZLOTOFF:  Thank you, Your Honor.

 

 8             THE COURT:  For the record, it was Friday.  Today's

 

 9   Monday morning.

 

10                 DIRECT EXAMINATION, resumed

 

11   BY MR. ZLOTOFF:

 

12   Q.  Ms. Lucas, were you present with - with Mr. Henson at the

 

13   moment when he was served with RTC's lawsuit for copyright

 

14   infringement?

 

15   A.  I don't remember.  He was served so many times that I can't

 

16   remember all the specific instances.

 

17   Q.  Do you know why he filed Chapter 13?

 

18             MR. ROSEN:  Objection.

 

19             THE COURT:  Overruled.

 

20             MR. ROSEN:  Not only is it hearsay, it calls for

 

21   mind-reading.

 

22             THE COURT:  No.  It calls for a yes or no.

 

23             And you can answer it yes or no.

 

24             THE WITNESS:  Yes.

 

25   BY MR. ZLOTOFF:

 

                                                           184

 

 1   Q.  What - what are the reasons, as you know them, of your own

 

 2   personal knowledge?

 

 3             MR. ROSEN:  Objection.

 

 4             THE COURT:  Sustained.

 

 5   BY MR. ZLOTOFF:

 

 6   Q.  Ms. Lucas, are you aware of someone named Grady Ward?

 

 7   A.  Yes.

 

 8   Q.  And who is Grady Ward?

 

 9             MR. ROSEN:  Objection, irrelevant.

 

10             MR. ZLOTOFF:  Your Honor, it's relevant on the issue

 

11   of Mr. Henson's perceived need to file a Chapter 13.  Grady Ward

 

12   is an individual similarly situated, we believe.

 

13             MR. ROSEN:  I bet to differ.

 

14             MR. ZLOTOFF:  In - in other words, someone who was

 

15   sued by RTC, filed bankruptcy.

 

16             MR. ROSEN:  Your Honor, I not only beg to differ but I

 

17   must object most strenuously to counsel testifying about matters

 

18   that are not before you.  The record in this case before you

 

19   consists of exhibits and any testimony that's been offered.

 

20   Counsel's testimony from the counsel table as to who Mr. Ward is

 

21   or what - that he was sued by RTC is not only irrelevant but it

 

22   is beyond this record.

 

23             If counsel wants to make that proposition and he

 

24   believes it's relevant, he ought to put somebody on the witness

 

25   stand.

 

                                                           185

 

 1             MR. ZLOTOFF:  Your Honor, -

 

 2             THE COURT:  The objection is simply does she know who

 

 3   he is, and the objection's overruled.

 

 4   BY MR. ZLOTOFF:

 

 5   Q.  Of your own knowledge -

 

 6             THE COURT:  Wait.

 

 7             You can answer the question.  Do you know who he is?

 

 8             THE WITNESS:  Yes.

 

 9   BY MR. ZLOTOFF:

 

10   Q.  Okay.  Of your own knowledge, could you explain what you

 

11   know about Grady Ward and RTC?

 

12             MR. ROSEN:  Objection.  Calls for -

 

13             THE COURT:  What's the relevance, counsel?

 

14             MR. ZLOTOFF:  The relevance -

 

15             THE COURT:  He filed for bankruptcy?  Many people file

 

16   for bankruptcy.  Why is it relevant to what you're trying to

 

17   prove in this case?

 

18             MR. ZLOTOFF:  Because one of - because one of -

 

19   because I read the Eisen case, Your Honor.  And one of the - one

 

20   of the - one of the key things, I think, is going to be why did

 

21   he file bankruptcy.  There's an allegation that he didn't need

 

22   to file bankruptcy.  And - and I'm going to show with this

 

23   testimony of Grady Ward that there was a legitimate reason to

 

24   file bankruptcy.

 

25             THE COURT:  You're not showing it with the testimony

 

                                                           186

 

 1   of Grady Ward, are you?

 

 2             MR. ZLOTOFF:  No.

 

 3             MR. ROSEN:  Nor, Your Honor, is he showing you any

 

 4   bankruptcy filing by Mr. Ward.

 

 5             MR. ZLOTOFF:  I don't have to.  That's not the point.

 

 6   That's not the point.  The point is generally what was known

 

 7   about Grady Ward.

 

 8             MR. ROSEN:  Your Honor, with all due respect, what was

 

 9   known about Grady Ward, to the extent it has any relevance, and

 

10   I see none, the proper inquiry would be what was known about

 

11   Grady Ward by Mr. Henson; to the extent that had anything to do

 

12   with the operation of his mind in filing a bankruptcy petition

 

13   in February of 1998.  That's not this witness.

 

14             And, again, counsel is simply - it is very

 

15   transparent.  Counsel is simply trying to put in through this

 

16   witness evidence which, if it came in at all, it would be

 

17   properly offered through Mr. Henson, who is not here.

 

18             MR. ZLOTOFF:  Your Honor, -

 

19             THE COURT:  Well, Mr. Zlotoff, I haven't decided

 

20   whether to let in any evidence about Grady Ward, but you've

 

21   established no foundation whatsoever.  And on that ground I'm

 

22   not going to let any testimony in until you establish a

 

23   foundation.  You haven't even established that she knows him.

 

24   You haven't established anything that would provide a basis for

 

25   me even to consider the testimony.

 

                                                           187

 

 1             You said from her personal knowledge, which means

 

 2   nothing.  You haven't established a foundation.  From what

 

 3   people have told her?  I have no idea what this is intended to

 

 4   do -

 

 5             MR. ZLOTOFF:  Well, -

 

 6             THE COURT:  - and therefore the objection's sustained

 

 7   at this point.

 

 8             MR. ZLOTOFF:  Well, but may I - may I try to establish

 

 9   foundation, Your Honor?

 

10             THE COURT:  Sure.

 

11   BY MR. ZLOTOFF:

 

12   Q.  Okay.  Of your own personal knowledge what do you know about

 

13   Grady Moore -

 

14             MR. ROSEN:  Objection.

 

15   BY MR. ZLOTOFF:

 

16   Q.  - Grady Ward?

 

17             MR. ROSEN:  That's not a foundation.

 

18             THE COURT:  That's not a foundation question.

 

19   BY MR. ZLOTOFF:

 

20   Q.  Do you have - are you aware of Grady Ward's having been sued

 

21   by RTC?

 

22             MR. ROSEN:  Objection.  Relevance, no foundation,

 

23   calls for hearsay.

 

24             THE COURT:  Overruled.

 

25             THE WITNESS:  Yes.

 

                                                           188

 

 1   BY MR. ZLOTOFF:

 

 2   Q.  Are you aware whether that happened - are you aware of the

 

 3   timeframe when that happened?

 

 4             MR. ROSEN:  Objection.  The same objection:

 

 5   Relevance, foundation.  She hasn't - counsel has not even

 

 6   established were you aware of whether or not this is hearsay.

 

 7   There's no basis - no foundation laid that this witness has any

 

 8   firsthand knowledge even assuming relevance.

 

 9             THE COURT:  Sustained.

 

10             MR. ROSEN:  A lot of people were aware of it.

 

11             THE COURT:  Sustained.

 

12   BY MR. ZLOTOFF:

 

13   Q.  How did you come to know of RTC litigation with Grady Ward?

 

14   A.  I first heard about it from my husband and later I talked

 

15   with Mr. Ward.  I met him and talked with him personally and

 

16   over the telephone.

 

17   Q.  And what did you find out from Mr. Ward regarding litigation

 

18   with RTC?

 

19             MR. ROSEN:  Objection.  Calls for hearsay.

 

20             THE COURT:  Sustained.

 

21   BY MR. ZLOTOFF:

 

22   Q.  Did you find out that Mr. Grad- - Mr. Ward filed a

 

23   bankruptcy petition?

 

24             MR. ROSEN:  Objection.  Not only relevance, hearsay

 

25   and best evidence rule.  Rule - Federal Rule of Evidence 1001 to

 

                                                           189

 

 1   1007.

 

 2             THE COURT:  Sustained.

 

 3   BY MR. ZLOTOFF:

 

 4   Q.  Was - at the point - are you aware of the time when Mr.

 

 5   Henson filed his Chapter 13?  Are you aware of the date when

 

 6   that happened?

 

 7   A.  I believe the initial filing was in February of '98 and I

 

 8   think it was reinstated in April or June of the same year.

 

 9             THE COURT:  If you would back up from the mic just an

 

10   inch you won't create the static.

 

11             THE WITNESS:  Sorry.  Sorry.

 

12             Is that better?

 

13   BY MR. ZLOTOFF:

 

14   Q.  Are you aware of what bank accounts Mr. Henson had at the

 

15   time?

 

16             MR. ROSEN:  Objection.  No firsthand - no foundation.

 

17   This is hearsay, number one.

 

18             THE COURT:  Overruled.

 

19             MR. ROSEN:  And, number two, - Your Honor, may I just

 

20   state my objection for the record?

 

21             THE COURT:  Sure.

 

22             MR. ROSEN:  The best evidence of what bank accounts

 

23   Mr. Henson had at the time are the statements from the bank.  It

 

24   doesn't have to coincide with the exact date of filing because

 

25   it never does, but if the question is what bank accounts Mr.

 

                                                           190

 

 1   Henson had -

 

 2             THE COURT:  That wasn't the question.

 

 3             MR. ROSEN:  Yeah.  He asked whether she was aware of

 

 4   what bank accounts he had.

 

 5             THE COURT:  That's right.  And the objection's

 

 6   overruled.

 

 7   BY MR. ZLOTOFF:

 

 8   Q.  How many bank accounts did he have at the point of

 

 9   commencement of the bankruptcy -

 

10             MR. ROSEN:  Objection.

 

11             THE COURT:  Overruled.

 

12             THE WITNESS:  He had an account at Wells Fargo which

 

13   was a joint account with me.

 

14             I'm sorry.  How far do I have to get from this thing?

 

15   Is this good?

 

16             THE COURT:  Probably about - I think that's good.

 

17             THE WITNESS:  This is good?  Okay.

 

18   BY MR. ZLOTOFF:

 

19   Q.  Are you aware of your own recollection at this point how

 

20   much roughly was in that bank account at that time?

 

21             THE COURT:  Which time, Mr. Zlotoff?

 

22             MR. ZLOTOFF:  At or about the time when he filed, when

 

23   he commenced his Chapter 13 petition.

 

24             THE WITNESS:  I have seen the papers, so that did

 

25   refresh my memory, and it seems to be correct to me that it was

 

                                                           191

 

 1   around 1500.

 

 2             MR. ROSEN:  Objection.  Move to strike it.  The

 

 3   witness had no independent knowledge of this on Monday - on

 

 4   Friday.

 

 5             MR. ZLOTOFF:  And she refreshed her recollection, Your

 

 6   Honor.

 

 7             THE COURT:  Overruled.

 

 8   BY MR. ZLOTOFF:

 

 9   Q.  Are you aware of balances - the range of balances subsequent

 

10   to that date, let's say on through roughly August of that year

 

11   of 1998?

 

12             MR. ROSEN:  Objection, best evidence rule.  The best

 

13   evidence what the balances were at any given time or at any

 

14   month end cycle are the documents.

 

15             Your Honor, I must press this objection.  I mean it is

 

16   so clear under Federal Rule of Evidence 101 to 107, she cannot

 

17   testify to this.  And I - and I have a case right on point which

 

18   I - which I'm willing to give Your Honor as to what the best

 

19   evidence rule means.  This is absolutely improper for the

 

20   witness to testify as to what a document - as to information

 

21   that's contained in a document.

 

22             MR. ZLOTOFF:  First of all, I - I'm not asking about

 

23   terms of the document.  I'm simply asking whether she has

 

24   independent recollection of balances, rough balances,

 

25   approximate balances during a certain period of time.  I'm not

 

                                                           192

 

 1   asking her to quote line and verse of a what particular balance

 

 2   was.

 

 3             MR. ROSEN:  Excuse me, but -

 

 4             MR. ZLOTOFF:  Nonetheless I have bank balances and

 

 5   I've given copies to Mr. Rosen.  And these were documents he

 

 6   subpoenaed, RTC subpoenaed.  I have copies of them.  I've given

 

 7   him copies.  They were in his book of evidence before, I think,

 

 8   at 187 and 188.

 

 9             And - and I'm prepared to give the witness -

 

10             THE COURT:  You have to give it to my Deputy to mark

 

11   it the next in line, but then you can proffer it if you want.

 

12             MR. ZLOTOFF:  Okay.

 

13             MR. ROSEN:  Your Honor?

 

14             THE COURT:  Wait a second.

 

15             MR. ROSEN:  Sure.

 

16             THE COURT:  It hasn't been proffered.

 

17             MR. ZLOTOFF:  Yeah.

 

18             It would be O, I think.

 

19             THE CLERK:  Yes.

 

20        (Creditor's counsel confer off record.)

 

21             THE CLERK:  Mr. Zlotoff?

 

22             MR. ZLOTOFF:  I'm sorry.  What?

 

23             THE COURT:  It's a statement, what do you - the

 

24   description -

 

25             MR. ZLOTOFF:  A Wells Fargo statement - statements.

 

                                                           193

 

 1             MR. ROSEN:  Could we not show it - may I ask it not be

 

 2   shown to the witness yet?

 

 3             THE COURT:  No, you may not.

 

 4             Give it to the witness.

 

 5             THE WITNESS:  Thank you.

 

 6             THE COURT:  Mr. Zlotoff.

 

 7             MR. ROSEN:  Your Honor, may I see the original?

 

 8             THE COURT:  Do you have the original?

 

 9             MR. ZLOTOFF:  Do I have the original of the statement?

 

10   No, I do not.  I believe duplicates are acceptable for Federal

 

11   Rules of Evidence, though.

 

12             MR. ROSEN:  I object on two grounds to this, and this

 

13   is going to carry through because apparently from the folder I'm

 

14   assuming Mr. Zlotoff has other documents he's going to offer.

 

15             The first ground is that this is not on his witness

 

16   list.  This Court has been extraordinarily gracious, and I can

 

17   go through every order of the Court respecting pretrial

 

18   proceedings that Mr. Zlotoff has not complied with.  This one is

 

19   untenable.

 

20             This witness - this document was supposed to be on the

 

21   witness list in the joint pretrial order filed in March of 2001;

 

22   it was not.  It was supposed to be on the witness list in

 

23   August; it was not.  It was supposed to be delivered to us, as

 

24   Your Honor ordered an exchange of exhibits; it was not.

 

25             Your Honor has before you Mr. Zlotoff's witness list

 

                                                           194

 

 1   of August 1, 2002.  It is not on there.  That's the first

 

 2   objection.

 

 3             The second objection is contrary to what Mr. Zlotoff

 

 4   just said, that copies are admissible in lieu of originals, I

 

 5   direct Your Honor's attention to Federal Rule of Evidence 1002.

 

 6   I will read it since it's very short.  "To prove the content of

 

 7   a writing, recording, or photograph, the original writing,

 

 8   recording, or photograph is required, except as otherwise

 

 9   provided in these Rules or by an act of Congress."

 

10             I haven't heard anything from Mr. Zlotoff by way of

 

11   the "except as otherwise required."  The rule is exactly

 

12   contrary to what Mr. Zlotoff just said.

 

13             THE COURT:  First, is it in any of these volumes, this

 

14   already?

 

15             MR. ROSEN:  Those are ours.

 

16             THE COURT:  I understand.  Is it in any of those

 

17   volumes?

 

18             MR. ROSEN:  I think - I don't know if it was - no, I

 

19   think it was removed.  It was originally - when we filed our

 

20   exhibit list, Your Honor, in March of 2001, before Mr. Henson

 

21   fled, we put in documents that we anticipated using if he were

 

22   on the witness stand.  When it thereafter became apparent of

 

23   recent times that Mr. Henson was not appearing at trial, when

 

24   Your Honor was not going to let him testify, we then withdrew

 

25   documents that we did not need.  And if - and they - and those

 

                                                           195

 

 1   documents are not part of the exhibits, number one.

 

 2             Number two, and even if they were, they're not on Mr.

 

 3   Zlotoff's witness list.  They never were.

 

 4             THE COURT:  How about addressing the issue of

 

 5   prejudice?

 

 6             MR. ROSEN:  What is the number, by the way, that

 

 7   counsel says is - this is our Exhibit Number 1?

 

 8             MR. ZLOTOFF:  It's either 1 - it was formerly 1- -

 

 9   either 186, 187, or 188.

 

10             MR. ROSEN:  Well, if Your Honor will give me a second,

 

11   I have them, as - as do you.

 

12             MR. ZLOTOFF:  I don't have them in -

 

13             MR. ROSEN:  186 is a transcript of proceedings before

 

14   this Court of 1 - of July 10, 2002.

 

15             MR. ZLOTOFF:  No, no, no.  The former - in the former

 

16   trial binder -

 

17             MR. ROSEN:  The former trial binders are withdrawn.

 

18             THE COURT:  Wait a second.  Gentlemen, I've told you

 

19   again.  Now it's you, Mr. Zlotoff.  You cannot address each

 

20   other.  You can only address the Court.

 

21             I've asked you to address the question of prejudice.

 

22   That's to you, Mr. Rosen.  What prejudice would - would there be

 

23   in admitting this bank record subject to a certification from

 

24   the bank that it's a valid record?

 

25             MR. ROSEN:  Are you asking me, Your Honor?

 

                                                           196

 

 1             THE COURT:  Yes.

 

 2             MR. ROSEN:  The prejudice is we're in the middle of

 

 3   trial.  This is surprise.  And I don't believe I have to show

 

 4   prejudice in the face of a series of outstanding orders by this

 

 5   Court which Mr. Zlotoff has not complied with.

 

 6             I will start with the order which preceded the March

 

 7   13, 2001 pretrial con- -

 

 8             THE COURT:  But he admits it's not on the exhibit

 

 9   list, Mr. -

 

10             MR. ROSEN:  And he admits that even as of the time he

 

11   was supposed to give his exhibits, a couple of weeks ago, he

 

12   didn't give it to us.  And -

 

13             THE COURT:  Do you have any prejudice to allege?

 

14             MR. ROSEN:  Yes.  Of course I have prejudice to

 

15   allege.

 

16             THE COURT:  Well, then you should allege it.

 

17             MR. ROSEN:  Okay.  I will now have to deal with this

 

18   additional evidence.  And I don't know how quickly I can deal

 

19   with it.  I don't know if I'm going to need witnesses to deal

 

20   with it.  I am prejudiced by the fact I don't have Mr. Henson

 

21   here to examine.

 

22             What if I have to call witnesses or offer additional

 

23   documents to - to refute this statement?

 

24             I'm also prejudiced by the fact that now I have to

 

25   deal with this in the context of 20 hours that Your Honor has

 

                                                           197

 

 1   allocated.  I have no idea if Your - if Your Honor admits this,

 

 2   what additional time and witnesses and exhibits I am going to

 

 3   have to offer to refute anything that's in there.  That is

 

 4   prejudice in the middle of trial and I would respectfully submit

 

 5   that prejudice exists as a matter of law.  It's not even an

 

 6   issue when Your Honor has issued a series of specific orders

 

 7   going back to early 2001, one after the other after the other on

 

 8   exhibits, and Mr. Zlotoff has not complied.

 

 9             THE COURT:  The objection is overruled.  The prejudice

 

10   - the prejudice that's alleged is purely speculative.  This is

 

11   subject to providing a certified copy, and it should be done

 

12   promptly.

 

13             MR. ROSEN:  Your Honor, to save ourselves some time on

 

14   this, is this going to be the same with respect to anything else

 

15   that Mr. Zlotoff pulls out of his bag that's not on his witness

 

16   list?

 

17             THE COURT:  I rule on documents as they come in.

 

18   BY MR. ZLOTOFF:

 

19   Q.  Do you have Exhibit O in front of you, Ms. Lucas?

 

20   A.  Yes.

 

21   Q.  Is this the bank account to which you had previously

 

22   referred?

 

23   A.  Yes.

 

24             THE COURT:  Do you want to make an offer of proof of

 

25   how you got this, Mr. Zlotoff?

 

                                                           198

 

 1             MR. ZLOTOFF:  I got this from the subpoenaed documents

 

 2   of RTC from Wells Fargo Bank.

 

 3             THE COURT:  Do you deny that these were subpoenaed by

 

 4   you from Wells Fargo Bank?

 

 5             MR. ROSEN:  I have no recollection.  We don't if we

 

 6   got -

 

 7             THE COURT:  But Ms. - what about Ms. Kobrin?

 

 8             MR. ROSEN:  I just asked her.  She doesn't remember

 

 9   either.

 

10             MR. ZLOTOFF:  It was Mr. Hogan who subpoenaed them.

 

11             MR. ROSEN:  Excuse me.  I wasn't even involved in the

 

12   case at the time.  But I don't know if these documents were

 

13   produced by Mr. Henson or by the bank.  And I would have -

 

14        (Creditor's counsel confer briefly off record.)

 

15             MR. ROSEN:  And I would have to make an inquiry.  I

 

16   mean if counsel has a - this - I'm at a distinct disadvantage

 

17   because this occurred before I entered the case, so if counsel -

 

18             THE COURT:  Not before Ms. Kobrin, who is sitting by

 

19   your left side, entered the case.

 

20             Do you want to enter your appearance?  Could you enter

 

21   your appearance?

 

22             MS. KOBRIN:  Your Honor, I have not memorized -

 

23             THE COURT:  Could you enter your appearance, please?

 

24             MS. KOBRIN:  Yes.  Helena Kobrin from Religious

 

25   Technology Center.

 

                                                           199

 

 1             I have not memorized what documents were produced by

 

 2   whom.  I can't answer -

 

 3             THE COURT:  And you have no recollection?

 

 4             MS. KOBRIN:  I've - I - looking at these documents, I

 

 5   don't know which - what the source was.

 

 6             THE COURT:  Okay.  Do you - do you...  Do you know

 

 7   whether they were produced by Wells Fargo or by Mr. Henson?

 

 8             MR. ZLOTOFF:  I know that they were produced by Wells

 

 9   Fargo Bank because our - because Mr. Hogan or his office

 

10   delivered copies to me.  Ms. -

 

11             THE COURT:  Okay.

 

12             MR. ZLOTOFF:  You know, -

 

13             THE COURT:  The objection's overruled subject to

 

14   certification.

 

15             MR. ZLOTOFF:  May I bring in copies of the subpoena

 

16   with all the documents attached that I received?  Would that be

 

17   sufficient verification, Your Honor?

 

18             THE COURT:  Frankly I would - if you could bring - I

 

19   think that that's okay, but I would have to look that up, Mr.

 

20   Zlotoff.

 

21             MR. ZLOTOFF:  Okay.

 

22             THE COURT:  So bring it with a case -

 

23             MR. ZLOTOFF:  All right.

 

24             THE COURT:  - if you're going to bring that.

 

25             MR. ZLOTOFF:  Okay.  Thank you, Your Honor.

 

                                                           200

 

 1             Now the offer of proof is that these statements are

 

 2   for the period June '98, July '98, August '98, with each

 

 3   statement bearing a zero balance in the account.

 

 4   BY MR. ZLOTOFF:

 

 5   Q.  Do you know why the balance was zero for all those three

 

 6   months?

 

 7   A.  I can think of two reasons.

 

 8             MR. ROSEN:  I object, Your Honor.  This is obviously

 

 9   speculation.  The question is does she know why.  And if the

 

10   answer is yes, I'd ask counsel to provide a foundation before

 

11   the witness provides her speculation as to two reasons.

 

12             MR. ZLOTOFF:  Your Honor, -

 

13             THE COURT:  It does sound like speculation, -

 

14             MR. ZLOTOFF:  Right.

 

15   &