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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Criminal Action No. 04-cr-103-REB UNITED STATES OF AMERICA, Plaintiff,

NORMAN SCHMIDT, GEORGE ALAN WEED, CHARLES LEWIS, MICHAEL D. SMITH, Defendants. _______________________________________________________________ REPORTER'S TRANSCRIPT TRIAL TO JURY - VOLUME XIV _______________________________________________________________ Proceedings before the HONORABLE ROBERT E. BLACKBURN, Judge, United States District Court for the District of Colorado, commencing at 8:35 a.m., on the 23rd day of April, 2007, in Courtroom A701, Alfred A. Arraj United States Courthouse, 901 19th Street, Denver, Colorado. APPEARANCES WYATT B. ANGELO, MATTHEW KIRSCH, Assistant United States Attorneys, 1225 Seventeenth Street, #700, Denver, Colorado, appearing for the Government. Suzanne M. Claar, Official Reporter 901 19th St. Denver, Colorado, 80294-3589 (303)825-8874 PROCEEDINGS REPORTED BY MECHANICAL STENOGRAPHY TRANSCRIPTION PRODUCED BY COMPUTER

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APPEARANCES (Continued) PETER R. BORNSTEIN, 1600 Broadway, #2350, Denver, Colorado, THOMAS J. HAMMOND, 1544 Race Street, Denver, Colorado, appearing with Defendant Schmidt. THOMAS E. GOODREID, 1801 Broadway, #1100, Denver, Colorado, appearing with Defendant Weed. RONALD GAINOR, 6414 Fairways Drive, Longmont, Colorado, appearing with Defendant Lewis. DECLAN J. O'DONNELL, 777 Fifth Street, Castle Rock, Colorado, RICHARD N. STUCKEY, 2150 West 29th Avenue, #500, Denver, Colorado, appearing with Defendant Smith.

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P R O C E E D I N G S (Proceedings resumed at 8:35 a.m.) THE COURT: Thank you, and please be seated. Mr. Weed, good morning.

Mr. Schmidt, good morning. MR. WEED: THE COURT:

Good morning, your Honor. Mr. Lewis, good morning. Good morning.

Mr. Smith, I am bending this way. MR. SMITH: THE COURT: Good morning.

Counsel, of course, good morning.

Ladies

and gentlemen generally good morning.

And ladies and gentlemen

of the jury, good morning specifically. THE JURY: THE COURT: Good morning. I presume we are prepared to proceed. I

believe we had a witness withstanding cross-examination. Counsel, would you assist the court in recalling the

(Susan Veik was recalled to the stand.) THE COURT: Ms. Veik, again good morning. Good morning. If you will

come forward and be seated.

I remind and

admonish you that, of course, you continue to testify during this trial under oath. understanding? THE WITNESS: THE COURT: cross-examination? Yes, I do. Where were we in And do you continue to have that

Thank you. Mr. Gainor.

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MR. GAINOR: THE COURT: MR. GAINOR: THE COURT:

Thank you, your Honor. You are welcome. May it please this court. Thank you. CROSS-EXAMINATION

BY MR. GAINOR: Q A Q Good morning, Ms. Veik. Good morning. We will just reposition this stuff here, and I will have

some questions for you. Ms. Veik, if I understand your testimony correctly, you were interviewed by Charles Lewis and a representative of HQ Global on or about June 24th or 28th, 2002. about correct? A Q It was in July. You weren't interviewed in June and started your job in Does that sound

July? A Q I don't believe so, no. Okay. Do you remember roughly when you were interviewed in

July of 2002? A Q A Q Yes, I do. Can you tell me the day? No. I don't recall the day right now.

And is it also your testimony that after interviewing you

started at Capital Holdings approximately two weeks later?

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A Q

Susan Veik - Cross Approximately. Now, when you were interviewed, you were interviewed by

Mr. Lewis and was it Paetra or Jaimie from HQ Global? A Q Jaimie. And this was your first and only interview with regard to

employment at the private placement investment firm known as Capital; is that correct? A Q A Q I spoke on the phone with Mr. Lewis. Face-to-face interview? That was the only face-to-face interview. And you spoke with Mr. Lewis prior to your face-to-face

interview? A Q On the phone. When you came in and interviewed with both the

representatives from HQ Global and Charles Lewis, you were told what type of responsibilities would be expected from you, among other things, correct? A Q Yes. You were told that you would be called upon to create

spreadsheets from time to time? A Q Yes. That you would have to talk to people who called in,

clients, investors, who would call in from time to time? A Q Yes. That you would have to essentially create records of

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Susan Veik - Cross transactions for this business? A Q Yes. And aside from -- essentially being an office manager, your

role would be to answer the phones on occasion as well? A Q Yes. Now, prior to your interviewing in July, and then starting

two weeks later in July, you had never been into the Capital Holdings office before, correct? A Q That's correct. You didn't know Charles Lewis before the phone calls leading

up to that interview? A Q No, I did not. You hadn't met or spoken to Norman Schmidt prior to that

period of time? A Yes. I had met Norm Schmidt prior to my employment. Yes, I

did. Q That's because your friend Bev had shared space over at that

area in Commerce City and that's where Mr. Schmidt was located? A Q That's correct. So when did you first come in contact with Mr. Schmidt

relative to your starting date at Capital Holdings? A I believe I was introduced to him the first time before the It was in Lakewood.

office was moved to Commerce City. Q A And that was through Bev? Yes.

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Q

Susan Veik - Cross But my questions were that prior to coming into Capital

Holdings, you didn't have any idea how often Charles Lewis and Norman Schmidt would meet or talk? A Q No, I did not. So it was around mid-July that you start your job at the

Capital Holdings office, and that's the location of 1400 16th Street? A Q A Q Yes. Also known as the 16 Market Square building? Yes. And when you started, your hours would have been, what,

eight to five every day? A Q A Q Yes, yes. Monday through Friday? Yes. Mr. Lewis would come into the office during those days and

weeks? A Q A Q Yes. He would come and go during the day? Yes. Mr. Perreault, for the first two or three months or so would

be there as well? A Q A Yes. He would come and go during the day as well? Yes.

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Q

Susan Veik - Cross Now, I believe when we started questioning you or, excuse

me, I started questioning you on Thursday of last week -- how is your headache, by the way? A Q It's gone. Thank you.

When we started talking on Thursday, you and I, we had

discussed a little bit of the particulars of the office at Capital Holdings. lines? A Q A Q A Q Yes. And you testified that you answered them sometimes? If it rang on my desk, yes, I did. Sometimes the calls would go through HQ Global? Yes. And sometimes other people in the office, whether it be Now, you said that there were three phone

Mr. Perreault or Mr. Lewis, would answer the phone? A Q Yes. And the way the phone line were set up, you could go -- a

person in that office could make a phone call without having to go through HQ Global or you to place that call? A Q A Q Yes. Local or long distance? Yes. You testified on Thursday that it was Mr. Perreault who in

the beginning would take home files with him every evening? A Yes, he did.

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Q A Q A Q A Q A Q

Susan Veik - Cross He had keys to the office? Yes, he did. And the laptop in the office was Mr. Perreault's? It was either his or Chuck Lewis's. But you are not sure? I'm fairly certain it was Mark's. And then later there was a filing cabinet? Yes. Talk about that filing cabinet for a little while on

Thursday? A Q A Q A Q A Q A Q A Q A Q A Yes. Giving you the headache? Yes. That was on wheels? Yes. And that was locked up? Yes. And you knew where the keys were to the filing cabinet? Yes. Mr. Perreault had a set of keys? No. But you knew where the keys were in the office? Yes. And where were they? They were in the top drawer of one of the stationary filing

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Susan Veik - Cross cabinets that was in the office. Q A Q Was that top drawer ever locked? No. You also testified about Mr. Norman Schmidt and you said

that he would on average come into the office around three or four times a month? A Q A Q Yes. And he would call the office on occasion during the week? Yes. You also talked on Thursday and a little bit today about the Do you remember

other office that he had out in Commerce City. that? A Q A Q Yes. All right. Yes.

That's where all the race cars were?

And you were out there several -- on several occasions

either on business for Norman Schmidt from Capital or to see Bev, correct? A Q A Q I did not go there on business. But you went to go see Bev? Yes. And to see the race cars and all the race car accouterments

and all that other stuff? A Q Yes. How many race cars did you see out at Norm Schmidt's office?

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A Q

Susan Veik - Cross There were seven or eight. If we can put up Exhibit -- Government's Exhibit 1033, which

is already admitted in evidence. Now, take a look at your screen, Ms. Veik, if you can. That's the Spoiled Brat photo that was admitted through the government's direct on Thursday. that? A Q Yes. All right. Now that big 18-wheeler, Smitty Motor Sports Do you have a recollection of

Featherlight 17, that was the 18-wheeler that was located at Commerce City as well? A Q Yes. And the location that we are looking at behind that, that is

the actual warehouse that Norman worked at and had his race cars as far as you know? A Q As far as I know, yes. Were you aware whether or not investors were ever taken to

that location to let them see the race team, all the cars, and the big 18-wheeler? A Q Occasionally. I mean when you saw that, that was a very open display of They didn't have these things hidden

success would you say?

under a tarpaulin or locked behind a sealed door? A Q No. It was out in the open?

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. You were also aware that at that location Jannice Schmidt

would be from time to time? A Q I don't recall ever having seen her there. Were you aware that she would maintain Norman Schmidt's

books? A Q That's what Chuck Lewis told me, yes. And you are aware that Jan and Norm were former partners of

one another? A Q A Q Jan and Norm? Excuse me. Yes. Remember that partnership being called L&M, Lewis & McLain Ever hear that name before? No.

Jan and Charles Lewis?

Associates. A Q

No, I did not. Now, during your testimony last week, you discussed the fact

that -- if I got the time frame wrong, please correct me -- that it was around late October, November, 2001, that you started developing concerns? A Q A That is correct. You went to Chuck Reinhardt, yes? Yes. THE COURT: interruption. Excuse me, counsel. I apologize for the That is correct?

Ms. Goldstine, how are you? Choking.

THE JUROR:

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Susan Veik - Cross THE COURT: Madam clerk, your aid. help you? THE JUROR:

What can we do to

Bear with me a minute, and I will get it

THE COURT:

And we will try not to embarrass you as we

THE JUROR: THE COURT: prepared to proceed? THE JUROR: THE COURT:

Thank you. You are very welcome. Are you again

Yes.

Thank you. Counsel, leave is granted to

Thank you.

digress to reiterate three or four of your previous questions, if you are so inclined. MR. GAINOR: THE COURT: BY MR. GAINOR: Q It was around October -- late October or November of 2001 Okay. Thank you, your Honor.

You are welcome.

that you started to develop concerns about the program, correct? A Yes. No, it was 2002. No. I am sorry. You are right. It

was 2001. Q All right. You told us that you went to Chuck Reinhardt,

correct? A Q Yes. Who then took you to the FBI or set up a meeting with the

FBI?

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. And then you had the opportunity to meet Stephanie Hahn, who

is seated in court today? A Q Yes. And at that point after talking with her, you essentially

agreed to report and act as an informant in this case? A Q Yes, I did. And consistent with that -- well, that meeting with

Stephanie Hahn, do you remember when that first meeting occurred? A Q A Q Yes, I do. Do you remember the date? November 24th. Okay. From November 24th on, you started to call in pretty

much every day and give Ms. Hahn and the FBI a summary of what was going on in the office. A Q Yes, I do. You reported to her the things that you observed and told Do you remember doing that?

her the things that you thought were important, correct? A Q Yes, I did. And you were aware, were you not, that Ms. Hahn prepared

summaries of what you had told her every time you contacted her from 11/24/01, November 21st -- November 24th of 2001, all the way to your last reporting which was, I guess, to November of 2004, where you were calling in and still giving information to

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Susan Veik - Cross Stephanie Hahn of the FBI. You were aware she was preparing summaries, were you not? A Q Yes, I was. And we know that because we got every one of those summaries So I have them in front of me.

we believed in discovery. A Q Okay.

Now, were you afforded the opportunity to review any of

these summaries prior to your testimony? A Q A Q Yes, I was. Okay. Can you tell me when that happened?

Approximately three weeks ago. And how did that happen? Did Ms. Hahn deliver them to you?

Did you go into the FBI office and see them? A Q A Q A Q They sent them to me. Okay. Yes. Or you gave them back? I still have them. So they sent you FBI 302s for you to hold on to. Were they And you still have them?

sent via mail or courier? A Q A Q Mail. And that was three weeks ago? Approximately. Now, had you met with Stephanie Hahn about a week or so

before she sent you the summaries?

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes, I did. Did you meet with Agent Hahn after you received and reviewed

the summaries? A Q A Q A Q Yes, I did. On how many occasions? After I got them? Okay. Twice.

And that was face-to-face or on the phone?

Face-to-face. And you had an opportunity to meet with the Assistant United

States Attorneys, Mr. Angelo and Mr. Kirsch, prior to your testimony? A Q A Q Yes, I did. On how many occasions? Twice. And when would that have been? Relative to you starting to

testify on Thursday. A Prior to last Thursday, it would have been about a week and And before that, the

a half prior is the most recent time. first time was March 23rd, I believe. Q All right.

Did you receive a subpoena to testify in this

case? A Q Yes, I did. Now, the first time you and I met was on Thursday during the

cross-examination, correct? A Yes.

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Q

Susan Veik - Cross And I understand that it was Mr. Stuckey who before trial

tried to meet with you and you refused? A Q I did. Okay. That's that polite older gentleman sitting behind me

there, right? A Q Yes. Okay. So jumping to a time frame and then going to some

specific questions, you were in that office pretty much full-time from July of 2001 until March 7th of 2002, correct? A Q Yes. About an eight-month period? THE COURT: THE JUROR: THE COURT: Take a deep breath. Just one moment. Sorry. Your apology is appreciated and accepted. We very rarely harm jurors. You The jury box is ringing.

Again, Mr. Gainor, please excuse the interruption. may continue. MR. GAINOR: BY MR. GAINOR: Q A Q So you were in the office for about eight months? That's correct. And you were there pretty much every day. I am glad it wasn't me.

Did you ever take

a sick day? A Q No. And you became somewhat familiar with the procedures in the

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 office? A Q Yes. All right. Now, according to what you have observed and

according to what you know, Capital Holdings had a Denver office with satellite offices in Spokane, Chicago, and Sacramento; is that correct? A Q Yes. And during your experience and time on the job, you came to

believe that Norman Schmidt was the general manager and controller of the investment program? A Q Yes. Okay. He was referred to as the president. Now, you have told us on your testimony and in your

reports, and let me see if I got it accurate, that all money taken into the office was eventually in one form or another given to Norman Schmidt? A Q Yes. And that money would be either deposited by him or on his

behalf into an account? A Q Yes. And you knew that he was the -- or had the signature

authority on that account? A Q Yes. You also heard in the office that Norman Schmidt said the

account is non-cullable or non-depleting? MR. HAMMOND: Your Honor, I will just object on

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Susan Veik - Cross foundation and hearsay for who it was heard from. THE COURT: BY MR. GAINOR: Q Did you hear that from Norman Schmidt? THE COURT: objection. MR. GAINOR: As to hearsay, it's not offered for the Just a minute. Response, if any, to the Response.

truth of the matter asserted. THE COURT: And is there a personal knowledge component

to this, Mr. Hammond? MR. HAMMOND: MR. GAINOR: Yes, there is. If I may inquire further, perhaps I can

delve into that area with the witness and lay more of a foundation. THE COURT: You may. So that the record is complete, The former

that portion of the objection for now is sustained. objection is respectfully overruled. And you may continue with foundation. BY MR. GAINOR: Q

Did you ever tell Stephanie Hahn that Norman Schmidt said

the account was non-depleting? A Q Norm Schmidt did not tell me that. Chuck Lewis did.

And did you tell Stephanie Hahn that Chuck Lewis got this

information from Norman Schmidt? A Yes.

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Q

Susan Veik - Cross Did Norm Schmidt also tell you that he would soon receive Do you remember

$250 million into one of his bank accounts? telling that to Ms. Hahn on 12/7/02? A

If I could see what you see maybe I could recall it. MR. GAINOR: Your Honor, with the court's permission I May I hand it to your clerk?

am going to take out an FBI 302.

And I can have it marked as an exhibit, if the court is so inclined. THE COURT: I am. And your request to transmit this to

the witness via my clerk is granted. And then at the earliest practicable time, perhaps at the midmorning recess, perhaps it can be copied. MR. GAINOR: BY MR. GAINOR: Q Show you what has been marked as Defense Exhibit 18. THE COURT: MR. GAINOR: THE COURT: BY MR. GAINOR: Q Ask you to review it, and then I will ask for it back from Let Lewis Exhibit 18. I am sorry, your Honor. Thank you. Yes. Yes, your Honor.

the clerk so I can use it during any subsequent follow-up. me know when you are done reading. A Okay. MR. GAINOR:

Your Honor, with the court's permission,

may I retrieve the exhibit from the clerk?

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Susan Veik - Cross THE COURT: You may. And thank you, madam clerk. BY MR. GAINOR: Q Ms. Veik, did you tell the FBI that Norm Schmidt said he

would soon receive 250 million into one of his bank accounts? A Q Yes, I did. You discussed wire transfers during your testimony on And it is true, is it not, that Norm Schmidt was the

Thursday.

person who was authorized to send the wires? A Q Yes. Do you remember telling the FBI on several occasions wires

must be signed by Norman Schmidt? A Q Yes. And do you remember observing or saying that in January

Charles Lewis gave unsigned wires to Mike Smith to deliver to Norman Schmidt -- excuse me -- Charles Lewis gave unsigned wires to Mike Lewis to deliver to Norman Schmidt to sign? A Q Yes. Now, part of your job at Capital would be to prepare these

spreadsheets and these distribution lists every month? A Q Yes. And what you would do, if I understand that aspect of your

job description properly, is that you would list out payees' names for distribution checks, and whether it was 70 or 80 checks that had to go out to people, you would have a total number at the end of your spreadsheet, and then whatever that

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Susan Veik - Cross number was, whether it was 536,000 or 250,000, then money would be wired into the account to cover those checks; is that correct? A Q A Q A Q I assume that's what he did, yes. You assume that's who did? Norm. Wire money into the account? Yes. Do you have any personal knowledge as to where he would get Would it be offshore accounts? Would it be

this money from?

accounts in the country? A Q I do not know where it came from. Let me show you what has been marked as Lewis Exhibit 17,

and with the court's indulgence, I would ask again for access to deliver this copy to your clerk. THE COURT: Leave is granted as requested. Madam

clerk, again your assistance, please. MR. GAINOR: BY MR. GAINOR: Q I will ask you to examine that four-page exhibit. Go Permission to meet her halfway.

through each page, and then when you are done, look up and let me know. A Q A Okay. First of all, do you recognize this document? Yes, I do.

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Q A Q

Susan Veik - Cross Is it a document that you prepared? Yes. And is it a document that was prepared in connection with

your duties at Capital Holdings? A Yes. MR. GAINOR: Your Honor, with the court's permission, I

move to enter into evidence Lewis 17. THE COURT: MR. ANGELO: THE COURT: defendants? MR. HAMMOND: THE COURT: May I voir dire briefly? You may. Any objection by the government? None, your Honor. Any objection by any one or more of the

Thank you.

EXAMINATION BY MR. HAMMOND: Q A Q Good morning. Good morning. On the first page it looks as though there is a line that is Do you see that?

highlighted. A Q A Q

Yes, I do. Is it your highlighting? Yes, it is. And on the second page, is there another area that's

highlighted? A Okay.

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Q A Q A Q

Susan Veik - Cross Did you highlight that? No. Do you know who did? No, I don't. There are -- on the first page where it's highlighted, there Is that yours?

is some handwriting. A Yes, it is. MR. HAMMOND:

I have no objection, subject to that one

line that I don't think Ms. Veik has personal knowledge about the highlighting. THE COURT: About the highlighting that's placed there? Right. On who did it or how it was done

MR. HAMMOND: on page 2.

She is familiar with page 1. The objection is duly noted and will be

THE COURT: handled this way.

Lewis Exhibit 17 for identification is

admitted in evidence, provided, however, ladies and gentlemen of the jury, you may not yet consider the fact or significance, if any, to be attached to the highlighted line 3 on page 2 of the exhibit. You may consider the underlying data contained in the various columns, but you are not to attach any significance to the fact that this particular line and these columns in particular are highlighted. And you are so instructed.

Leave to publish, counsel. MR. GAINOR: Yes, your Honor. And unfortunately, I am

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Susan Veik - Cross not ELMO competent. So I need some help of your very able clerk with your permission. THE COURT: apparently. Flattery will get you everywhere,

Mrs. Kramer. If we can publish all four pages one page Can we make it a little smaller? If you

MR. GAINOR: at a time.

Thank you.

THE COURT:

Counsel, there is a zoom feature.

can locate it quickly you can probably accomplish that yourself. And you may rely on the defendants' technical maven who is poised to head your way, if necessary. MR. GAINOR: the first page. directly. I notice he was poised. Okay. This is

I am sorry.

I didn't want to address the jury

Is there a problem? What's the beef, ladies and gentlemen? We just got our screen on. We haven't seen

THE COURT: THE JURY: the page. THE COURT: please.

Very well.

Treat that as rehearsal,

And take two.

BY MR. GAINOR: Q The first half of page 1. And with the court's permission,

I will now shift to the second page, unless there is an objection from the jury. Second half of the first page.

Now go on to page 2, court's permission. THE COURT: BY MR. GAINOR: Thank you.

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Q

Susan Veik - Cross Ms. Veik, you see in front of you third name down is your

name? A Q Yes, it is. And a distribution in December for 6500. I presume that

would be your salary check and then the overrides that you were due? A Q A Q No. What was the 6500 for? That may have been from Val Bough. So in addition to Val Bough giving you 10,000, he also gave

you -A Q A Q This is part of that. It was broken up in different pieces then? Yes. All right. Moving to the second half of page 2. Now going And

to page 3, first half.

Now, the second half of page 3.

then finally this one-half page 4.

So while you are looking, A fairly long list of

Ms. Veik, you can also field a question.

investors who were receiving distributions that month out of Capital Holdings, correct? A Q Yes. And that total on the midway through page 4 representing

$536,210.24, that would have been the total for all the checks, for all the disbursements that month out of the Capital Holdings office, correct?

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. Then you show a deposit of 536,210.24 to cover that exact According to your spreadsheet?

amount, correct? A Q Yes.

And it was your understanding that it was wired in through

one of Norman Schmidt's accounts? A Q Yes. Based on what you heard and what you saw, it would also be

your belief, would it not, that Norman Schmidt traveled to London quite often. A Q A Q A Q Yes. Do you remember telling that to the FBI?

That's what I was told.

And you were aware that Peter Moss lived in London? Yes. And Mr. Schmidt was also a good friend of Leon Harte? I heard the name but I wouldn't know about the relationship. Do you remember telling Agent Stephanie Hahn on

January 21st, 2003, that you believe Norman Schmidt is a friend of Leon Harte? A Q Yes. Now, your checks that you got paid at Capital Holdings, you How did it work?

were paid once a week or every two weeks? A Q Once a month.

And were your checks automated checks that came out from a

payroll system or were they personal checks? A Chuck always paid me from the trust account.

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Q A Q

Susan Veik - Cross From the Miloka trust account? Yes. You are also aware that there were signature stamps in the

Denver office and the Spokane office with Mr. Schmidt's signature? A Q Yes, I am. Those signature stamps were made before you started working

at Capital? A No. I didn't get it right away so I don't know what the

Northwest Group had. Q You were aware, based on your observations and your

familiarity with the office, that Mr. Schmidt knew that a signature stamp was going to be made for him? A Q Yes. There were also signature stamps with regard to his initials

that were made? A Q Yes. Yes.

It was in February of 2003, a month before the search

warrant, that Mr. Schmidt wanted those signature stamps back, correct? A Q That sounds correct, yes. And at that time he only wanted contracts of over a hundred Do you remember

thousand dollars being brought into the office. telling that to the FBI? A

If I could see the 302, I could recall it better.

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 clerk. BY MR. GAINOR: Q I am sorry. You said that you do recall Norman Schmidt Q Okay. MR. GAINOR: Your Honor, with the court's permission,

may I meet your clerk halfway? THE COURT: BY MR. GAINOR: Q I will show you what has been marked as Lewis Exhibit 19. You may. Thank you.

Ask you to review it, but pay particular attention to page 2. That will hone you in a little bit. MR. HAMMOND: MR. GAINOR: February 8th '03. Could we get a reference on that? It's the 302 provided on discovery on Prepared by Special Agent Stephanie

FBI 302.

Hahn, recounting conversations with source was Susan Veik. BY MR. GAINOR: Q And when you are done with it, Ms. Veik, let me know so I

can retrieve the exhibit. A I am not reading the whole thing. Yes, I do recall telling

her that. MR. GAINOR: Okay. With the court's permission may I

have the exhibit retrieved? THE COURT: You may. Thank you, counsel. And madam

saying he only wanted contracts in for $100,000 in the office from that moment forward?

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A Q A Q

Susan Veik - Cross That's correct. Contracts for the investment program? Yes. Now, you are aware, Ms. Veik, that with regard to contracts

or distribution checks, those checks, those documents would either be stamped with Norman Schmidt's signature or hand-signed by him? A Q That's how they were executed, yes. And there were plenty of occasions when contracts were

signed in Mr. Schmidt's hand in the Capital office or outside of the office, but it was in his hand? A Q Yes. If we can have Government's Exhibit 1051 up, please. And if we can focus -Do you show that I show that 1050 was

Previously admitted on Thursday. THE COURT:

Counsel, excuse me.

Exhibit 1051 has been admitted? admitted, counsel. MR. GAINOR: moment. THE COURT: MR. GAINOR: BY MR. GAINOR: Q Thank you.

I do not.

Okay, your Honor.

If I can just have a

You may.

If I could have Exhibit 1050 up, please.

If we can go to page 5 of that exhibit.

Focus in on the

signatures by Mr. Schmidt. A Yes, I do.

Do you recognize that signature?

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Q A

Susan Veik - Cross Is that a stamp of Norman Schmidt's signature? It looks like the actual signature. At least mine was. The stamped signature

was thicker, bolder. Q A Q

Do you recognize this as Norm Schmidt's signature? Yes, I do. How about the initials on page -- the bottom of page 5. And on page 3. If we can show the witness the Ask you to take a And

on page 4.

initials for each one of those three pages. look at it. A Q Let me know when you are done.

Page 5 did not look like Norm's initials. That's where it's a little bit crossed out, a little bit

tough to read? A Q A Q A Q Uh-huh, yes. How about 4 and 3? Page 3 looks accurate to me. Okay. No. All right. If we can go to Government's Exhibit 233. Ask Page 4 does not.

Does it look like a stamp to you on page 4?

you to focus in on page 5, the signature block for Norman Schmidt. A Q A Q A No. Do you recognize that as the signature of Norman Schmidt? Yes. And the title, what do you make that out to be? Sort of poor abbreviation for president. Does that look like a stamp to you?

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Q

Okay.

Susan Veik - Cross Are you familiar with Wendy Delaney?

Have any

contact with her? A Q Yes. Okay. On the phone. And a file would have been maintained at the Capital

Holdings office on Wendy Delaney? A Q Yes. And it would have been maintained as a Denver file,

color-coded as a Denver file? A Q Yes. We will get back to Ms. Delaney in a minute if we can, If we can go to Government's Exhibit 1021. I am sorry. And if we

Ms. Veik.

can focus in on page 5. 18 of that exhibit.

If we can focus in on page Does

The signature block of Norm Schmidt.

that look like a stamp to you? A Q A Q A No. Do you recognize that as the signature of Norman Schmidt? Yes. And his title is what? It says, owner. This was May of '02. This was prior to my

employment. Q A Q I understand, Ms. Veik. Okay. You also are aware that the title CEO would be affixed on

occasion to a title block next to Norm Schmidt's signature? A Yes.

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Q

Okay.

Susan Veik - Cross We are done with that. Thanks.

Do you remember telling the FBI that Norman Schmidt was shopping for a 25-person jet, Learjet? A Q Yes, I do. You also remember from what you observed and what you

discussed that if Lewis was -- Mr. Lewis was ever to be removed from the Denver office, Norman Schmidt would do the firing? A Q I don't recall that. Do you remember discussions that John Schlabach was supposed

to take over the office in Denver? A Q Yes, I do. And it was Norman Schmidt who was having those discussions Do you remember

about replacing Mr. Lewis with Mr. Schlabach. that? A Q No.

Perhaps I can show you another 302 to refresh your

recollection. A Okay. THE COURT: legs. MR. GAINOR: THE COURT: MR. GAINOR: With the court's permission. Certainly. Thank you. Lewis 19, which has Madam clerk, I would be stretching your

302 dated 2/11, 2003.

previously been shown to the witness. THE COURT: Thank you.

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Susan Veik - Cross THE WITNESS: Thank you. BY MR. GAINOR: Q Front page, page 1, if you can review it and let me know

when you are done and then I can re-ask the whole question. A Q A Page 1, the whole page? If you don't mind. Okay. MR. GAINOR: Your Honor, while the witness is

reviewing, may I go back to the desk to retrieve? THE COURT: BY MR. GAINOR: Q A Let me know when you are ready. Okay. I am ready. With the court's permission, may I You may, counsel.

MR. GAINOR:

retrieve the exhibit and meet halfway? THE COURT: BY MR. GAINOR: Q Ms. Veik, do you remember telling Ms. Hahn that it was You may. Thank you.

Norman Schmidt who planned to make some changes and may have John Schlabach run the Denver office? A Q Yes, I do. As part of your duties at Capital Holdings, you would be

responsible from time to time to send faxes that Chuck Lewis would -- Charles Lewis would prepare and send out to Norman Schmidt and third parties. Do you recall doing that?

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes, I do. I would direct your attention to Government's Exhibit 5020, And if

which I believe, your Honor, is already in evidence. not, then I am wrong twice. Ask you to take a look at that again. Lewis's handwriting, Ms. Veik? A Q Yes, it is.

Is this Chuck

And were you present when he is writing, please advise me Were you there

ASAP if I can get your approval for changes.

when he was writing that out or he gave it to you? A Q I don't recall. Were you there when he wrote the note on the bottom half, Were you

I'm meeting with Norm at noon to discuss this matter. there when he wrote that out? A Q A Q I don't recall. But you remember faxing it out, right? I may have.

Now, this was a particular fax just sent -- or sent to the You don't have any recollection of this From the cover sheet you can't tell?

Weed Insurance Company.

being faxed over to Norm? A Q

Not from this page, no, I can't. It wouldn't be unusual during the day that Charles Lewis

would leave the office and from time to time would meet with Norman Schmidt? A That's true.

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Q

Susan Veik - Cross If we can go Exhibit 1035, front page.

Actually, page 3,

Mr. Landreth.

This has also, your Honor, I believe been

previously admitted. Your clerk nodding in agreement. second strike. THE COURT: BY MR. GAINOR: Q If we can blow up the text of the first half, please. All right. Do you recognize that as a fax to Weed First Thank you. So I don't get my

half.

Insurance by Chuck Lewis? A Q Yes, I do. And if we can go to the text, please, on the second half.

Were you present in the office when Chuck Lewis wrote out that he will crosscheck with Norm as to his okay this evening, that will be the third and fourth sentence down. highlight that, please. If you can go up, Mr. Landreth. you go. Third sentence. There If we could

And then highlight, I will crosscheck with Norm as to Thank you.

his okay this evening.

Were you present when Chuck Lewis wrote that out? A Q I may have been. I don't recall.

How about the part, if we can send and/or prepare the Were you there when he was writing

certificates of insurance. that out? A

I do not recall if I was in the office at the time.

I may

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 have been. Q How about the other section? I will call as to whether or Were you there for that

not you and Norm wishes to send them. part? A Q A Q I may have been.

Do you remember faxing out this document? No, I don't. If we go to the top half of the document again. And let me

know if there is any stamps on that top half of the document that reflect that it was faxed? A It says it was faxed on July 30th by Mark. THE COURT: I am sorry. Mark. By whom?

THE WITNESS: THE COURT:

Whom? Mark Perreault. Excuse the interruption.

THE WITNESS: THE COURT: BY MR. GAINOR: Q

I am sorry.

If we can go to Government's Exhibit 518.

I believe that And ask you to

was previously shown to you for identification.

take a look -- I imagine what we should do, your Honor, with the court's permission, is show her the hard copies, if that meets the approval of the court and clerk. THE COURT: MR. GAINOR: It does. 5018. 5018? Thank you.

THE COURTROOM DEPUTY:

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Susan Veik - Cross MR. GAINOR: Five zero one eight. THE COURT: BY MR. GAINOR: Q It's a four-page exhibit. Please go through them and look Do you recognize the Thank you.

up and let me know.

Take your time.

handwriting on page 1 of that exhibit? A Q A Q Yes, I do. Whose handwriting is it? Chuck Lewis. And the document that it's written on, do you recognize that

document as being found in Capital Holdings office while you worked there? A Q Yes. And was this document prepared according to the date at a

time when you were working at the office? A Yes. MR. GAINOR: Move for admission of Government's Exhibit

THE COURT: MR. ANGELO: THE COURT:

First, any objection by the government? No, your Honor. Any objection by any one or more of the

remaining defendants? MR. GOODREID: THE COURT: Your Honor, may I have a moment, please? You may. And thank you.

Counsel.

MR. GOODREID:

I have no objection, your Honor.

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Susan Veik - Cross THE COURT: And hearing no objections, Government's Exhibit 5018 for identification admitted in evidence, with leave to publish. MR. GAINOR: Thank you, your Honor. We would be

requesting permission to do so. THE COURT: BY MR. GAINOR: Q Go to page 1, if we can, of that exhibit. And make, if we This You are welcome, and permission granted.

can, blow up the first half of the page of that exhibit. is a fax from Charles Lewis to George Alan Weed? A Q George Alan Weed, yes.

And if we can go to the second half that shows the text, and

please blow that up, Mr. Landreth. Now, with regard to the second paragraph, the first sentence, if we can highlight that. First sentence. Were you in the office, Ms. Veik, when Mr. Lewis asked your directions on issues would be greatly appreciated. you there when he wrote that? A Q I don't recall. Okay. How about to that portion of the text under the box, If we could blow that up and highlight the first There we go. When Were Highlight it, please.

Mr. Landreth. sentence.

The text under the box.

And highlight the first sentence of that, please. Mr. Lewis wrote, if all is satisfactory, a copy of the

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Susan Veik - Cross certificate may be faxed to a number. Mr. Lewis wrote that? A Q A Q I don't recall if I was or not.

Were you there when

Were you aware whether or not this fax was ever sent out? No, I am not. Would it have been during the time of your employment at

Capital Holdings? A Q I believe so, yes. Well, you know so. You were working there on the 22nd of

July, were you not, Ms. Veik? A Q Yes. If we could now go to Exhibit -- Government's Exhibit 5019. And I will ask you to

It might be in the same book, Ms. Veik. take a look at the four-page exhibit.

I think it's been

previously shown to you for identification by one of the two prosecutors. Go through it and then look up and let me know

when I can ask my next question. A Q Okay. All right. Ms. Veik, you recognize the handwriting on page

1 of that exhibit? A Q A Q Yes, I do. Okay. And is that handwriting Chuck Lewis?

Yes, it is. Is that on a fax cover sheet that was kept at Capital

Holdings?

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY MR. HAMMOND: Q You just said that you didn't type it. Do you have any idea A Q Yes, it is. Is it written out and dated at a time that you were working

there, ma'am? A Q Yes, it is. The handwriting on pages 2 and 4, do you recognize that

handwriting? A Q A Q Yes, I do. Whose handwriting is that? Chuck Lewis. And the typing of the document on page 2, 3, and 4, would

you have typed out that document? A No. MR. GAINOR: Your Honor, I move for introduction of

Government's Exhibit 5019. THE COURT: MR. ANGELO: THE COURT: Any objection by the government? No, your Honor. Any objection by any one or more of the

remaining defendants? MR. HAMMOND: THE COURT: May I voir dire briefly?

You may briefly. EXAMINATION

who did? A I believe it came from the Northwest Group.

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Q

Susan Veik - Cross And I understand what you might believe.

Do you have any

personal knowledge of who typed it? A Q A I did not see anyone type it, no. Do you have any personal knowledge where it came from? The north -- it came from the Northwest Group. That's the

only knowledge I have. Q A Q Okay. Yes. And that was Thursday? When is the last time you saw it, to Had you seen it before today?

the best of your recollection? A Q A Q A Q A Q In the office. Do you recall when? Almost five years ago. In 2002? Yes. Was that a fax that went out or came in? The top sheet would have gone out. Okay. Do you know -- would it have gone out with what's If you know?

attached to it? A

Well, I would say, yes I believe it would have, but I don't

have -- I believe it would have, yes. MR. HAMMOND: has been satisfactory. THE COURT: MR. GAINOR: Response. Witness said she believed it has been. Your Honor, I don't think the foundation

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Susan Veik - Cross THE COURT: The question is, is it -- it's my call again under Rule 104(a) so it is my discretion which is at stake. The question is, is it not more likely than not that the

exhibit in toto is what it purports to be through this examination. I find that foundational predicate to have been satisfied. All else is for you, ladies and gentlemen, in terms

of fact, credibility, weight, if any, to be given to the exhibit. The objection is respectfully overruled, and the Government's Exhibit 5019 for identification admitted in evidence, with leave to publish. MR. GAINOR: With the court's permission, we would seek

publication of page 1, the top half of that page. THE COURT: BY MR. GAINOR: Q Can you highlight the fax numbers and the names in those There is one more number, There you go. Granted.

boxes and outside the boxes. Mr. Landreth, under the box.

This is a fax that was addressed to Norm Schmidt and Alan Weed? A Q Yes. And do you see two fax numbers there, that it was supposedly

faxed to? A Yes.

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Q A Q

Susan Veik - Cross Sent by Mr. Lewis? Yes. If we can go to the second half of the document, please.

And highlight the text, to Norm and Alan, at the very bottom. Were you in the office, if you know, at the time that Charles Lewis wrote out, Norm, upon final approval I have the stationery, envelopes, et cetera, ready? A Q I don't specifically remember him writing this fax, no. How about the first half, Norm, the commentary, the first Highlight it, please.

half of that box.

Were you there when Mr. Lewis wrote out, please review for your input? A Q A Q I could have been. To both Norm and Alan, Norm Schmidt and Alan Weed? I could have been there, yes. Thank you. Ms. Veik, there were conversations and behavior

that you observed in the Capital Holdings office at one particular point with regard to 1099s. A Q Yes, it is. Do you remember telling the FBI on several occasions that Isn't that a fact?

Charles Lewis said that all clients should be getting 1099s? You remember that? A Q A No, I did not. He didn't say that? He did not say that? He never said that to Stephanie Hahn?

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Q

Susan Veik - Cross Did Charles Lewis ever say in your presence that all

clients, all investors, should get 1099s? A I believe if they got overrides, they should get 1099s. MR. GAINOR: Your Honor, may I have the court's

permission just to fill out another exhibit sticker? THE COURT: MR. GAINOR: at Lewis Exhibit 21. You may. Thank you.

And with your clerk's help, I think I am If I can get clarification. Lewis 20.

THE COURTROOM DEPUTY: MR. GAINOR: your clerk halfway? THE COURT: BY MR. GAINOR: Q

With the court's permission, may I meet

And you may.

Thank you for inquiring.

Ms. Veik, I ask you to look at what's been labeled as Lewis

Exhibit 20, and ask you to look at the second half of the first page, just to have you hone in on it, and that will be a 302 dated January 29th, 2003, authored by Stephanie Hahn of the Federal Bureau of Investigation. A Q A I stand corrected. You stand corrected what? This says, Lewis has directed that all clients be sent

1099s. Q A Now, you know what a 1099 is, don't you? Yes, I do. MR. GAINOR: May I retrieve the exhibit, your Honor?

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Susan Veik - Cross THE COURT: You may. And madam clerk, thank you. MR. HAMMOND: THE COURT: BY MR. GAINOR: Q So you stand corrected he directed that all clients be sent May I look at the exhibit? Thank you.

You may.

1099s? A Q A Q At that pint, yes, that is what he said. You understand what a 1099 is? Yes, I do. It's a document reporting to the investor in this case the

amount of money, interest, or appreciation he has actually taken on an investment, correct? A Q A Q A Q Yes. And it's reported to the IRS.

In the form of a 1096 summary? Yes. That was supposed to be signed by Mr. Schmidt? Yes. And do you remember being informed or learning that

Mr. Schmidt refused to sign the 1096s, correct? A Yes, I do. THE COURT: Counsel, you just made reference to a 1096. Did you

Now, that may have been invidious cross-examination. mean a form 1096? MR. GAINOR: THE COURT: Yes, your Honor. Thank you.

Excuse my interruption.

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Susan Veik - Cross MR. GAINOR: And I apologize. BY MR. GAINOR: Q At one point Mr. Lewis was asking about the 1099s every day.

Do you remember telling that to Agent Hahn? A Q Yes, I do. You also knew from personal observation that Charles Lewis

would give personal checks, $1,500, $2,000, to Prince Moye before he became an investor. the FBI? A Q Yes, I do. Prince Moye was down on his office and Charles Lewis would Do you remember telling that to

cut him checks, correct? A Q Yes. And it was later that Prince Moye became an investor and a Remember that?

salesman for the program. A Q Yes.

Let me direct your attention to Government's Exhibit 233.

It's the letter that was in the Lindy Markham file that said confidential, do not call. handwriting, right? A Q Yes, I did. Now, you started working in mid-July in the Capital office, Now, you said that's Chuck Lewis's

correct? A Q Yes. That letter is dated June 21st, 2002. If we can focus in on

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that date. A Q Yes.

Susan Veik - Cross That's correct?

So you have no personal knowledge as to how many times that

letter went out before you started working at Capital Holdings, would you? A Q No, I don't. A little while ago you told us that you were familiar with

the Wendy Delaney file, correct? A Q A Q Yes. Wendy Delaney had her file color-coded as a Denver file? Yes. Let me show you what has previously been admitted into Entered as part of Wendy

evidence as Government's Exhibit 237. Delaney's testimony.

Do you see any handwriting saying, do not call on that letter by Chuck Lewis? A Q No, I don't. How about the second page of that letter? If we can go to

that. A Q A Q A Q

Do you see any handwriting from Chuck Lewis on that?

No. How about on the third page of that letter? There is a signature. Do you see any handwriting from Chuck Lewis, Ms. Veik? No, I don't. All right. Now, going back to Government's Exhibit 223, can

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Susan Veik - Cross you -- you were not in the office at the time Lindy Markham became an investor, were you? A Q I don't recall. What's her placement date?

On 223 are Gary Herbert's phone numbers blacked out in the

upper right-hand corner? A Q Are they blocked out? No, they are not.

Now, at this particular time it was, let's say, in, hm,

March of 2003, right after the search warrants, it's fair to say that you had been talking to the government in one form or another, Ms. Hahn in particular, about 80 times? A Q A Q Through the course? Yeah. On and off.

Possibly, yes. You are aware, are you not, that Gary Herbert contacted

Norman Schmidt concerned about all the phone calls he was getting about the letter, the sheer volume? A Q I do recall a conversation about that, yes. And you are also aware, Ms. Veik, that Gary Herbert had a

conversation with Tom Martino who had a radio show, and Herbert spoke to him about his topic, Capital Holding, and told Martino, Herbert did, that the program was legal and not a scam? remember telling that to the FBI? MR. ANGELO: be hearsay. MR. GAINOR: Not offered for the truth. Excuse me, your Honor. This is going to Do you

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Susan Veik - Cross THE COURT: Reply, if any. MR. ANGELO: that's clear. THE COURT: Very well. Again offered as non-hearsay, We would have no further objection if

not for the truth of the matter asserted, therefore the objection is noted but respectfully overruled. And on that

limited basis and for that limited purpose, the examination is permitted. Now, ma'am, would you -BY MR. GAINOR: Q Do you remember that? THE COURT: I am sorry, your Honor. Do you recall counsel's

Ma'am, excuse me.

last question before the objection? THE WITNESS: BY MR. GAINOR: Q Okay. Are you aware that Gary Herbert had contact with Tom Do you know who Tom Martino is? Could you repeat the question, please?

Martino? A Q A Q

Yes, I do. Radio talk show host, who was discussing Capital Holdings? Yes, I do. And Herbert told Tom Martino that the program was legal and

not a scam? A Q Yes, I do. The same person that drafted the letter that went out to

multiple investors went public and told Tom Martino that the

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Susan Veik - Cross program was legal? A That conversation was between Chuck Lewis and I. Yes, that

is what he said. Q Okay. But you are also aware that after that conversation

Martino had nothing bad to say about Capital on his radio program. Do you remember telling that to the FBI? And I can

refresh your recollection, if you need it. A Okay. MR. GAINOR: Your Honor, I have marked a FBI 302 dated It's Lewis

12/24/02, authored by Special Agent Stephanie Hahn. Exhibit 21. your clerk? THE COURT: BY MR. GAINOR: Q Thank you, and you may.

With the court's permission, may I pass it off to

I ask you, Ms. Veik, to focus in on page 2 on the And feel free to read the entire report if

highlighted section. you need to. the report. A Okay. MR. GAINOR: THE COURT:

Let me know when you are done, and I will retrieve

With the court's permission. Thank you. May I take a look at it, your Honor? Thank you.

MR. HAMMOND: THE COURT: MR. GAINOR: BY MR. GAINOR:

Counsel, you may.

Thank you, Mr. Hammond.

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Q

Susan Veik - Cross Do you remember telling the FBI that after this conversation

Gary Herbert had with Tom Martino that there were no longer any complaints from Tom Martino's radio program? A Q Yes, I do. Okay. And Chuck Lewis told me not to take any calls.

You know I am going to ask you to answer the

questions, and if you have to reply and then blurt out an answer, maybe you can do that according to proper procedure, but for right now there is a question out, and I am asking you your answer, and that's all. Now, you have already thrown out that Chuck Lewis said not to take any phone calls. But Chuck Lewis had no part of

that meeting with Gary Herbert and Tom Martino, Ms. Veik, did he? A Q Was he there? I don't know. Okay. Let's go to Miloka. You talked about Miloka on If we

Thursday.

And you were shown documents in Exhibit 1010.

can get that up, please.

Where you recounted for this jury Do you

there was $13 million in a Miloka monthly statement. remember that? A Q Yes, I do.

Now, you are not aware of $13 million ever being transferred You never saw any passbooks or bank

to Miloka account.

statements, did you? A Q No, I did not. Now, you have been working as an informant for the FBI in

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Susan Veik - Cross this case for at least two years. And you had conversations with Ms. Hahn when you would call her, correct? A Q Yes. You are aware that the most money that ever made it into

Miloka during this entire time was $319,000, not 13 million, not 10 million, not 8 million, but 319,000. A Okay. Did you know that? I can't see

I am not sure what your question is.

what you are talking about on here. Q Okay. If we can go to, let's say, and I apologize, if we I think it may be on page 2 or 3. We may

can go the statement. have to -- okay.

Let's blow that up if we can.

All right.

That's a Miloka holdings statement that reflects the current monthly placement value of $10 million. recognize that? A Q A Q Yes, I do. You testified about it on Thursday. Yes, I do. My question to you is, you never saw an account statement or Do you recollect that? Do you

written by a bank or an account passbook that reflected 10 million or $13 million balance in Miloka? A Q A Q From a bank? Yes. No. And from your contact on over a hundred different occasions

with the FBI, were you ever informed that the most money that

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Susan Veik - Cross ever went into the Miloka account was $319,000? of that? A Q No. Yes or no.

Were you aware

But what you are aware of is that the Miloka account would

also double as an account where Chuck Lewis would write expenses from for the office, correct? A Q Yes. Now, let's go through some of those expenses and see how And if you need your recollection Okay, Ms. Veik?

much you remember of them.

refreshed, I will be happy to do it. A Q Okay. All right.

You are aware, are you not, that Miloka

checks -- or would it surprise you that Miloka checks for $23,000 out of the 300,000 that made it into the account, was written for office supplies? A Q A Q 23,000? Yes. No. Did you ever total up the expenses that were paid by Miloka Were you aware of it? Were you aware of that, No. 1?

for office expenses -- for office supplies? A Q No. Were you aware that office workers were paid out of the One, were you aware of it? Yes or no.

Miloka account $19,491. A Q

I was -- I was paid from that account. That's not my question. I am talking about office workers

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 in general. A Q A Q No. Were you aware that they were paid $19,491? No. Did you ever total up those expenses as part of your

responsibility as an office manager? A Q No. Did the FBI ever ask you to total up those expenses in

preparation for your testimony? A Q No. Did Mr. Kirsch or Mr. Angelo ever ask you to total up those

expenses? A Q No. Were you aware, Ms. Veik, that $19,000 was written out of

Miloka checks by Chuck Lewis to pay for office rent at the Capital Holdings office? A Q A Q No. Did you ever prepare a spreadsheet detailing those expenses? No. Did Ms. Hahn of the FBI ever ask you to do so in preparation Were you aware of it? Yes or no.

of your testimony? A Q No. Now, they told you that -- the government -- that they were

going to question you about the Miloka spreadsheets, right? A Yes.

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Q

Susan Veik - Cross And when you saw that in front of the jury on Thursday, and

you saw that it was dealing with millions of dollars, you knew that they were going to ask you about that, right? A Q Yes. You were also aware, are you not, that Summit Ventures,

Charles Lewis, through Summit Ventures, would cut checks for rent at HQ Global for the office space? A Q Yes. In fact, you were shown a check during your direct testimony Remember that?

for $4,945 that Chuck Lewis wrote on the Summit Ventures account. A Q Yes. Are you aware that $12,998 was cut from or written on Summit You remember that?

Ventures check by Chuck Lewis, Charles Lewis, to pay for Capital Holdings rent at the office? A Q No. But you are aware that he also operated Summit Ventures, Were you aware of that?

right? A Q When I first started, yes. Okay. You never prepared a spreadsheet covering the -- or

detailing the expenses that were written out of that checkbook to pay for office expenses? A Q A I never saw that checkbook. Did you ever prepare a spreadsheet? No.

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Q

Susan Veik - Cross You never saw a checkbook or an account book on Miloka but

you still prepared documents on the XYZ account, you prepared a spreadsheet, right? A Q A Q Yes, I did. You never saw a checkbook on that? No, I didn't. You never saw an account book on that. That was 698,000 Did

that you told the jury that Charles Lewis had control over. you ever see an account on that other than your spreadsheet? A Q No.

Did Ms. Hahn during her hundred conversations with you, or

the prosecutors during their multiple conversations with you, ever ask you to detail the extent of the expenses that Charles Lewis laid out for the office out of Summit or out of Miloka? A Q No. Why not? MR. ANGELO: MR. GAINOR: THE COURT: gentlemen. Objection, your Honor. I will withdraw the question. I am off the hook again, ladies and

And Mr. Gainor, with my apologies for interrupting

your cross-examination, I note from the courtroom clock that in fairness to my staff and the jury, and to the rest of us, I should declare our midmorning recess of fifteen minutes, during which again, Ms. Veik, you may stand down and after which you must return to the witness stand. And until then you may step

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Susan Veik - Cross 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 court. THE COURT: BY MR. GAINOR: Q Ms. Veik, we spoke earlier in the cross-examination about You are welcome. And thank you. down. THE WITNESS: THE COURT: Thank you.

Ladies and gentlemen, preparatory to this

midmorning recess, please store your note-taking materials across the hall, and please be ever mindful of the critically important rules that govern your conduct as jurors in this trial. We are in recess. (Recess at 10:10 a.m., until 10:30 a.m.) THE COURT: Thank you. And please be seated again,

ladies and gentlemen. Mr. Gainor, you may resume your cross-examination. MR. GAINOR: Thank you, your Honor. May it please the

Mr. Schmidt discussing that one of the banks or the account he was dealing with was non-depleting, and you said that came through Charles Lewis? A Q A Q Yes. Not Norm Schmidt? No. Do you remember telling the FBI, Special Agent Stephanie

Hahn, on December 12th -- excuse me --