Free Brief in Support of Motion - District Court of Colorado - Colorado

Case 1:03-cv-01973-PSF-MJW

Document 209-8

Filed 05/16/2006

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EXHIBIT G

EXhIBIT G

U U, N U
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Case 1:03-cv-01973-PSF-MJW

Document 209-8

Filed 05/16/2006

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IN THE UNITED STATES FOR THE DISTRICT Civil J.E.H. Action No. KNUTSON, Plaintiff, v. THE WALKER GROUP, INC.,

DISTRICT COURT OF COLORADO

03-F-1973(MJW)

U~

Defendant.

DEPOSITION

OF J. March

EUGENE HAROLD 25, 2004

KNUTSON

1
APPEARANCES

N I N
~

FOR THE PLAINTIFF:

COLIN A. WALKER, ESQ. Fairfield and Woods, P.C. Wells Fargo Center Suite 2400 1700 Lincoln Street Denver, Colorado 80203 RICHARD S. GOTTLIEB, ESQ. (via telephone) Kilpatrick Stockton LLP 1001 West Fourth Street Winston-Salem, N.C. 27101 and JOSHUA MAXIMON, ESQ. The Maximon Law Firm, 12202 Airport Way Suite 170 Broomfield, Colorado

FOR THE DEFENDANT:

P I

LLC

rn
I P P
ALSO PRESENT: BRUNO

80021

MARK WILSON (via telephone)

JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

Case 1:03-cv-01973-PSF-MJW

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1

A

Yes Have you lived in Boulder continuously

16

P P P I
1 p

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 position? they don't since

Q.
college? A.

Yes. I understand to move that once people move out,

Q.
want A.

away.

Very true. Are you currently Yes, sir. employed?

Q.
A.

Q.
A. Communications

What are you doing? I am currently president of TransVidia

of Denver. What does They are bypass TransVidia a software do? company and broad--

Q.
A. band wireless

company. you been in that

Q.

How long have

A.

About

a year

and a half. early 2003?

Q.

So since

roughly

:
I I
22 23 24 25

Q.

Wh:t were

you doing

before that

job?

A.

Q.

A little consulting. What's your business

address

with

A.

515 Detroit

Street,

Denver,

80206.

BRUNO

JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I I I 1

Case 1:03-cv-01973-PSF-MJW

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1

Q.

Okay.

Do you commute

from Boulder

to

17

2 3 4 5 6 7

Denver daily? A. office.

I

--

I virtually

don't

ever

go to the

Q.
telecommute? A.

Okay.

How do you manage

that?

Do you

We telecommute,

and

it's

a very

small,

P P U

8 9 10

very

limited-activity Q. Okay. corporation?

company. publicly Is it a

---

well,

is

it

a public

11 12 13 14 15 16 17 18
.

A. Q. A.

No, it is not. It's privately Yes, Who John it is.

held?

Q.
A. wife.

is it held Lutz, Jr.,

by? Elizabeth Lutz and my

Q.
A.

Okay. No,

Do you have

any ownership?

I do not.

19 20 21

Q.
A.

Is it L--u--f--s? L-u-t-z. I'm sorry. No, Are they related to you?

Q.
A.

I

22 23 24 25

they are not. to your wife?

Q.
A.

Are they related No, they are not.

Q.

How is

it that your wife

is an investor

BRUNO

JOHN D BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I
1

Case 1:03-cv-01973-PSF-MJW

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Page 5 of 11

or part

owner

of that

company?

Is she employed

by

it?

2 3 4

A. A.

Q.

No. Has she Yes.

invested

in it?

Q.
5 6 7 8 9 10 11 12 13 14 15 16 17 18 this into with is, point. an area employment A.

Is she on the board I believe Okay. I think Okay. she is.

of directors?

Q.
A.

When was this company 2002. Did you receive a W-2

founded?

Q.

for

in 2003? A. No, I did not. any compensation from

Q.
TransVidia?

Did you receive

MR. And,

WALKER: Richard, I

I'm going think

to object

at us

this

is getting consistent

that we're

going

to object

our objections you know, we're

to your

Interrogatories, to get into Mr.

and that

not going

N N

19 20 21

Knutson's that's

assets,

income we don't

and so forth. think that

We don't is

think

relevant, to

that

calculated

lead to discovery

of admissible

22 23 24 25

evidence, and, therefore, not discoverable under the Federal Rules of Civil Procedure. And that's our objection, necessary, and I'm we'll instructing him not to answer. For Protective If

file a Motion

Order.

JOHN

BRUNO

D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I p U I I

Case 1:03-cv-01973-PSF-MJW

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1 2 3 4 Knutson,

MR. and we'll

GOTTLIEB: get through

Okay. some

Cohn, of these he

Mr.

19

communications, the financial

but has

indicated that to satisfy

doesn't

have

wherewithal

what we

contend

5 6 7

are his obligations under the guaranty, so I believe he put that in issue. With that said, would you consider allowing him to answer?

8 9 10

think,

MR. WALKER: No, wouldn't, and you know, we'll just have I to take that up I with

the Court.

U 1

11 12

understand

MR. that.

GOTTLIEB:

That's

fine.

I

13 14 15 16

(By Mr. Gottlieb) I am completing the record, your and instructing A. you not to answer y:u going

Q.

Mr. Knutson, just so attorney is objecting my previously question? stated

question.

to answer my

18 19 20 21 not going

Q.

Okay.

On advice

of counsel,

you are

to answer? A. That's MR. correct. Mr. Walker, just to and then we it at all? in an

GOTTLIEB:

I

22 23 24 25

effort

to expedite a record it up with

the process, allowing

do you want

establish can take later,

him to answer,

the judge

and he can strike

or are you not going

to have him answer

N

BRUNO

JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I I I I I I I I I

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1 2 3 4 S 6 7 8 9 10 ll 12 a pilot? A. to

MR. him answer at all. deposition. MR.

WALKER:

No,

I'm not going we

to have20 the

If ordered,

can reconvene

GOTTLIEB:

Okay.

I'm just

trying

lay a foundation. MR. WALKER: I understand. Mr. Knutson, are you

Q.

(By Mr.

Gotthieb)

Yes,

sir. a pilot, always always a pilot. always heard. a pilot?

Q.
A.

Are you still Once a pilot, That's what

Q.
often

I've

How

13 14 15

do you fly? A. Currently,

about

once

a month. as a

Q.
commercial

Okay.

And are you certified

16 17 18 19 20 21 22 23 24 25

pilot? A. Yes,

I

am. certifica-

Q.
tion? A.

How

long have you held that

Since

the

1970's.

Q.
A.

Do you own a plane? I own
--

MR. that. Again, same

WALKER: basis,

Objection. we're

Don't

answer

not going

to discuss

his assets.

I

BRUNO

JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I I I I I I I I I 1 I I 1 I

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1 2 3 4 your

Q.
attorney

(By Mr. is

Gotthieb)

Okay.

Mr.

Knutson,

instructing

you not to

answer the Are you

question going

whether

or not you own a plane. the question?

to not answer

5 6 7 8 9

counsel.

A.

I will not answer

under

advice of

MR. follow-up your question, Mr.

GOTTLIEB:

Okay.

Just

as a on

I want to know the "N" number can

plane.

Walker,

I assume you're not going

10 11 12

to

allow

me

--

MR. MR.

WALKER: GOTTLIEB:

Yes. Okay.

13 14 15

consulting with

Q. (By Mr. Gottlieb) What type of were you doing prior to your employment

TransVidia?

16 17 18 19 20 21 22 23 24 25

A. company.

I was

doing

some work

for my

father's

Q.
company? A.

Okay.

And what

is your

father's

It's Where

called The Harold is it based?

Corporation.

Q.
A. for is based

The entity that out of Trafalgar, What were Attempting

I was doing Victoria,

the work

Australia.

Q.
A.

you doing? to get additional business

BRUNO

JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I I I 1 I 1 I 1 I I

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1 2 3 4

26. (Deposition marked for identification) THE REPORTER: Okay. Exhibit Number 26 was

S 6

Q. Mr. Knutson, Exhibit 26 from you to Mark Walker dated December
A. Uh-huh.

is an e-mail 1
--

7

8 9

response

Q. to his
A.

---

a last couple days later. e-mail, Exhibit 25? Is this

in

10

Yes.

12 ll 13 14 15 16 17 18

correct?

Q.
A.

And you're Yes. "I owe my

saying an amount

of money,

Q.
trust more

father's

trust

and my wife's correct?

than I have A. Yes.

available";

is that

Q.
A.

Did you take Yes. Approximately

loans

from those

trusts?

I 1 P

19 20 21 22 23 24 25 "Remember, trusts?

Q.

how much

do you owe those

A.

About Five? Total. Total.

$500,000.

Q.
A.

Q.

And then

it goes

on to say, away all

you fired

me as president

and took

I

BRUNO

JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I
P
I

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178

1 2 3 4

Q.
Walker Group's meetings

"Based upon Rick Installation

Walker's

and the our

Forecast

(from

and reconfirmed

by our notes Sales

and handouts What

from the San Diego

National

Meeting)."

5 6 7

handouts soft

from A.

San Diego? And I may not have those. crashed,

They

were

copy,

and the disk

but we had handouts

P P I
1

8 9 10 11 12 13 14 15 16 17 18 19 20

from the San Diego national sales Q. When was that? A. I believe And then

meeting. fall of 2001.

that was in the it goes on to

Q.
down dad's a

say,

skipping sources, any my

couple paragraphs, advisers will not

"As for outside

let him gift this

(or loan)

additional

funds A.

to me until

is cleaned

up."

Correct. Has your dad gifted or loaned you

Q.
money? A. him do a thing.

Absolutely,

his

advisers

wouldn't

let

Q.
him not to? A.

Had he done

it before his advisers

told

1 P

21 22 23 24 25

1997. That was Yes. MR. GOTTLIEB: Mr. Court Reporter, the last time?

Q.
A.

BRUNO

JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667

I g I I 1 I I I 1 I

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221

1 2 3 4 refuted Tehect

Q.
after

And you say,

"The agreement flew to meet

was then with to

we had resigned, on August

in Spokane

7th,

and attempted

complete

the offered

transaction."

5 6 7 8 9 10

deal.

A.

Yes,

they

flew us up there

to do the

Q.
A. "We don't want want

What They to do

do you mean by
--

"refuted"? they said, we

when we got there, 90 percent,

as we proposed,

a hundred

percent."

ll 12

Q. A.

And change the name Netscavate.

to

--

13

Q.

And you're

saying quite

clearly

this

15 14 16 17 18

under the becomes an fraud statute in Colorado? that issue of bait and switch A. Q. switched? A. Q. it? A. to We
--

is covered

I believed

that

was correct. deal was

But you felt

like the Telect

g 1 I 1 1 I

19 20 21 22 23 24

It was

switched. you didn't accept

And for that reason,

no,

for that

reason,

we decided

listen to Walker's Q. Which

deal. you would only have a 40 percent

25

investment? BRUNO JOHN D. BRUNO, CSR REPORTING COMPANY, INC. (303) 831--1667