Case 2:12-cv-08333-ODW-JC Document 109-2 Filed 04/09/13 Page1of10 PageID
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EXHIBIT “A”

Reporter’s Transcript of Proceedings
Monday, March 11, 2013
(only Relevant pages Referenced in
Response to OSC)

EXHIBIT “A”

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1
1 UNITED STATES DISTRICT COURT
2 CENTRAL DISTRICT OF CALIFORNIA - WESTERN DIVISION
3 HONORABLE OTIS D. WRIGHT
4 UNITED STATES DISTRICT JUDGE PRESIDING
5 ae ee
—
Ingenuity 13 LLC, )
7 PLAINTIFF, )
8 VS. 3 NO. CV 12-8333 ODw
9 John Doe, et al., ;
DEFENDANT, )
10 ee ae
11
12
13 REPORTER'S TRANSCRIPT OF PROCEEDINGS
14 LOS ANGELES, CALIFORNIA
15 MONDAY, MARCH 11, 2013
16
17
18 re Da ar
19 KATIE E. THIBODEAUX, CSR 9858
U.S, Official Court Reporter
20 312 North Spring Street, #436
Los Angeles, California 90012
21
22
23
24
25
2
1 APPEARANCES OF COUNSEL:
2
3 FOR RESPONDENT GIBBS:
4 WAXLER CARNER BRODSKY LLP

BY: ANDREW J. WAXLER
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5 -and- BARRY BRODSKY
1960 E. Grand Avenue
6 Suite 1210
El Segundo, CA 90245
7
8 i
9 FOR DEFENDANT:
10 THE PIETZ LAW FIRM |
BY: MORGAN E. PIETZ
11 3770 Highland Avenue
Suite 206
12 Manhattan Beach, CA 90266
13 -and-
14 NICHOLAS RANALLO LAW OFFICES
BY: NICHOLAS R. RANALLO
15 371 Dogwood way
Boulder Creek, CA 95006
16
17

18 SPECIALLY APPEARING:

19 KLINEDINST LAW OFFICES
BY: HEATHER ROSING
20 501 Ww. Broadway
Suite 600
21 San Diego, CA 92101
22
23
24
25
3
1 INDE X
2
3 WITNESS NAME PAGE
4 Alan Cooper ; :
Direct Examination by the Court 21
5 Direct Examination by Mr. Pietz 26
Cross-Examination by Mr. Brodsky 34
6
Bart Huffman :
7 Direct Examination by Mr. Pietz 39
8 Benjamin Fox : ; :
Direct Examination by Mr. Pietz 45
9
Jessie Nason ;
10 Direct Examination by Mr. Pietz 52
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11 Brad Gibbs

Direct Examination by Mr. wWaxler 73
12 Cross-Examination by Mr. Pietz 105
13
14 EXHIBIT TDi. IN EVID.
15 1 36 37
2 36 37
16 3,4,5 36
6,7 43 44
17 8 50 50
9 56
18 10 67 67
11 68 68
19 12 73 73
13 107 107
20 14 108 108
15,16,17,18 110 110
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1 LOS ANGELES, CALIFORNIA; MONDAY, MARCH 11, 2013
2 1:38 P.M.
3 a es te ey
4
5
6 THE CLERK: Calling Item No. 4, CV 12-8333-obDw,
7 CV 12-6662, ODW, CV 12-6668, Ingenuity 13 LLC versus John
8 Doe, additionally, CV 12-6636 ODW, CV 12-6669, AF
9 Holdings LLC versus John Doe.
10 Counsel, please state your appearances.
11 MR. WAXLER: Andrew waxler, your Honor, and Barry
12 Brodsky for Mr. Gibbs who is present in the courtroom.
13 Thank you.
14 THE COURT: Good afternoon, counsel.
15 MR. PIETZ: Good afternoon, your Honor. Morgan

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14 they didn't file income taxes because they were not
15 required in where they were domiciled, but you may be
16 right and I may be wrong.
17 THE COURT: No. He quite clearly said they have
18 not filed income taxes anywhere.
19 MR. WAXLER: I understand that. I just thought it
20 was a different reason for not filing them.
21 THE COURT: Well, probably because they don't do
22 anything, do they?
23 MR. WAXLER: Well, they in hearing from Mr -- in
24 reading from what Mr. Hansmeier says, they obviously own

25 valid copyrights, and those entities retain law firms

16

1 Vike Prenda Law, apparently, to file actions such as the
2 ones that are at issue today.

3 THE COURT: They retain firms? Seriously?

4 You can hardly keep a straight face, can you?
5 MR. WAXLER: NO, your Honor.

6 THE COURT: These entities were basically created
7 by these lawyers; right? They have no business. They

8 have no employees. They have no function really. They

9 are not even really a shell, are they?
10 MR. WAXLER: I don't know, your Honor.
11 THE COURT: The law firms are basically
12. prosecuting these actions on their own behalf, aren't

13 they?
14 MR. WAXLER: Mr. Gibbs never had any client
15 contact with those clients. Mr. Gibbs received
16 information from Mr. Hansmeier and Mr. Steele, and those
17. =individuals advised Mr. Gibbs that they had talked to the
18 clients.

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19 THE COURT: Hansmeier and Steele, are those the

20 individuals to whom you refer in your papers to as the
21 senior partners in the law firm.

22 MR. WAXLER: Yes, they are.

23 THE COURT: I have another question. Does

24 Mr. Gibbs have an indemnity or hold harmless agreement

25 from these senior partners? Or is he out there on his

17

1 own?

2 MR. WAXLER: He has no hold harmless agreement

3 from these partners that I am aware of.

4 THE COURT: Okay. All right.

5 MR. WAXLER: He was an of counsel, w -- 1099,

6 independent contractor for Prenda Law.

7 THE COURT: All right. Now, the court is coming
8 to the conclusion, and this is why it has been wonderful
9 to have someone here to disabuse me of the notion that
10 all of these lawsuits are being prosecuted on behalf of

11 the lawyers, that all of the settlement funds inure

12 solely to the benefit of the lawyers because not dime

13 one has been transmitted to AF Holdings or to Ingenuity
14 13.

15 Now, if there is information to rebut that, I
16 would love to hear it. But, otherwise, that is what I am
17 stuck with. So now I am wondering why is it that no

18 disclosure has been made in this court and probably in
19 none of the federal courts that the lawyers have a

20 pecuniary interest in the outcome of these cases?

21 “MR. WAXLER: I don't believe that that is what

22 Mr. Gibbs understands the case to be. The fact that the
23 settlement funds were not transmitted as of yet to those

24 entities doesn't mean those settlement funds aren't being
, Page 14

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held in trust for those entities. Mr. Gibbs has no
18
information whatsoever, your Honor, to understand
anything different than what I just described.

MR. BRODSKY: Your Honor, may I interject one
point?

THE COURT: Sure. Your name again?

MR. BRODSKY: Barry Brodsky.

THE COURT: ATl right. Go ahead, sir.

MR. BRODSKY: My understanding and it is only from
reading the same deposition transcript was that those
funds remained in the trust accounts of the various law
firms that were representing the companies to defray
future expenses.

THE COURT: And what were those expenses other
than filing fees?

MR. BRODSKY: I would assume they would be filing
fees, investigative fees, you know, basically that.

THE COURT: To -- okay.

MR. BRODSKY: But that is just my reading of the
deposition.

THE COURT: Okay. And after that is done, then
what?

MR. BRODSKY: Apparently -- well, we don't know
where that trail ends, whether that trail has ended. But
we do know this. we know that none of those funds
reached Mr. Gibbs.

19

THE COURT: And we also know none of those funds
reached Ingenuity 13 and AF Holdings.

MR. BRODSKY: Apparently, from Mr. Hansmeier's

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Exhibit "A" - Page 6 of 9

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4 testimony, that is correct.

5 THE COURT: Who was the corporate designee, the
6 30(b)(6) designee for AF Holdings; right?

7 MR. BRODSKY: Yes.

8 THE COURT: And none of those funds ever reached
9 AF Holdings.
10 MR. BRODSKY: According to him, that's correct.
11 THE COURT: All these lawsuits settled on behalf

12 of AF Holdings; right? But they reside in the law firm's
13 trust account.
14 MR. BRODSKY: Some obviously were settled, yes.
15 THE COURT: You know what was really interesting,
16 a lawsuit handled by law firm A, the settlement funds
17 then are transmitted to Jaw firm B's trust account, law
18 firm B being controlled by Mr. Steele. I don't know. I
19 just find these things curious.
20 All right. Any other light to be shed on some
21 of the court's concerns with respect to this foolishness
22 here because -- by the way, is there a Mr. Cooper here?
23 MR. PIETZ: Your Honor, Mr. Cooper jis in
24 attendance today, and I believe prepared to confirm that
25 these documents are founded on forgeries.
20

THE COURT: Is there an Alan Cooper in the
courtroom? Don't be shy. Come forward, sir.

(The witness was sworn.)

THE CLERK: Thank you. Have a seat.

THE COURT: By the way, while we are on the
subject, is there a Mark Lutz in the courtroom as well?

Is either Hansmeier in the courtroom?

MS. ROSING: Your Honor, I am the attorney

oO OA NI DBD wo PhP W NN

specially appearing for them and if I could finish my
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Exhibit "A" - Page 7 of 9

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10 request?
11 THE COURT: I just want to know if they are here.
12 MS. ROSING: They are not physically here, your
13 Honor?
14 THE COURT: Thank you. Good.
15 MR. PIETZ: Your Honor, my understanding was that
16 Ms. RoSing was representing one of the Hansmeiers. Is
17 that different, or are you also representing Peter
18 Hansmeier?
19 MS. ROSING: I did not have an opportunity to say,
20 but I do not represent Peter Hansmeier.
21 THE COURT: I didn’t think you would be. The
22 technician? I didn't think you would be.
23 MR. WAXLER: Your Honor, while those individuals
24 are not present, my understanding is they are available

25 by phone.

21

1 THE COURT: Is that right. Okay. I may take them
2 up on that. Maybe. Anyway.

3

4 DIRECT EXAMINATION

5 BY THE COURT:

6 Q Mr. Cooper, your name is Alan Cooper?

7 A Yes, sir.

8 Q And where do you reside, sir?

9 A Isle, Minnesota.
10 Q Isle, Minnesota. Do you have any connection -- Jet
11 me just ask you specifically, do you have any connection
12 with Mr. Gibbs?
13 A NO, sir.

14 =Q Ever met Mr. Gibbs before?

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Exhibit "A" - Page 8 of 9

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No.

what about Paul Hansmeier, any connection with him?
No.

Ever meet him before?

No.

what about John Steele?

Yes. .

What was your connection with mr. Steele?

I was a caretaker for a piece of property that he

had in Northern Minnesota.

Q

A

Q
A

And when was this?

I think from 2006 till last August.
You worked for him from 2006 until August of 2012?

No, I did not work for him. TI was a caretaker for

his piece of property. He had two houses. I lived in

one and then took care of everything else there.

Q

Okay. And he paid you?

No.

who paid you?

There was no pay. It was I lived in the one house,
took care of everything on the property for free.
Or in exchange for a place to live?

Yes.

All right. So you didn't have to pay for your

housing; correct?

A
Q

correct.

So in exchange for housing on the property, you

took care of his property?

A
Q

Yes,
And this was a deal you negotiated with Mr. Steele?

Yes.
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Exhibit "A" - Page 9 of 9