Case 1:03-cv-01973-PSF-MJW
Document 209-8
Filed 05/16/2006
Page 1 of 11
EXHIBIT G
EXhIBIT G
U U, N U
ยท
Case 1:03-cv-01973-PSF-MJW
Document 209-8
Filed 05/16/2006
Page 2 of 11
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
Document 209-8
Filed 05/16/2006
Page 3 of 11
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
Document 209-8
Filed 05/16/2006
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
Case 1:03-cv-01973-PSF-MJW
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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
Case 1:03-cv-01973-PSF-MJW
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Filed 05/16/2006
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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
Case 1:03-cv-01973-PSF-MJW
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158
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
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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