RENASANT BANK, INC., Civil Action File Plaintiff. No. 3:11-CV-143 (CDL)

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2 IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF GEORGIA ATHENS DIVISION RENASANT BANK, INC., Civil Action File Plaintiff. No. 3:11-CV-143 (CDL) vs. EARTH RESOURCES OF FRANKLIN COUNTY, LLC, CHARLES C. DINSMORE, AND JOHN F. SMITHGALL, Defendants. THE DEPOSITION OF JOHN F. SMITHGALL August 27, Peachtree Street, Suite 800 Atlanta, Georgia Maureen S. Kreimer, CRR, RPR, CCR-B-1379.

3 1 INDEX OF EXHIBITS 2 For the Plaintiff: 3 EXHIBIT DESCRIPTION PAGE 4 #1 5/3/13 Order of Judge Land 6 5 #2 5/14/13 Judgment 7 6 #3 10/9/13 Per curiam opinion of the 8 7 Court of Appeals 8 #4 Personal Financial Statement 10 9 JS_PJ_ #5 J.P. Morgan Securities statement JS_PJ_ #6 J.P. Morgan Securities statement JS_PJ_ #7 J.P. Morgan Securities statement JS_PJ_ #8 J.P. Morgan Securities statement JS_PJ_ #9 Morgan Stanley Client Statement JS_PJ_ #10 Morgan Stanley Client Statement JS_PJ_ #11 Charles Schwab statement JS_PJ_ #12 Charles Schwab statement JS_PJ_

4 1 #13 Answer of Garnishment 59 2 #14 Certified Copy of a Corporate 61 3 Resolution 4 #15 Notice of Deposition and Notice to 64 5 Produce 6 #16 Production response to the 66 7 deposition notice (Collective 8 Documents) Retained by Mr. Christy 9 to be furnished to the 10 court reporter INDEX TO EXAMINATIONS PAGE 13 JOHN F. SMITHGALL 5 14 Examination by Mr. Wingate

5 1 APPEARANCES OF COUNSEL: 2 On behalf of the Plaintiff: 3 RICHARD H. WINGATE, ESQUIRE 4 F. EDWIN HALLMAN JR., ESQUIRE 5 Hallman & Wingate LLC Anderson Street SE 7 Suite Marietta, Georgia (404) On behalf of the Witness: 12 JOHN CHRISTY, ESQUIRE 13 Schreeder Wheeler & Flint Peachtree Street, NE 15 Suite Atlanta, Georgia Also Present: Mr. Clark Blackwell (Pursuant to Article 10(B) of the Rules and 22 Regulations of the Georgia Board of Court Reporting, 23 a written disclosure statement was submitted by the 24 court reporter to all counsel present at the 25 proceeding.)

6 1 MR. WINGATE: Good morning. This is going 2 to be the deposition of John Smithgall in the case 3 of Renasant Bank versus Earth Resources, Franklin 4 County, et al., Civil Action 3:11-CV-143 in the 5 Middle District of Georgia, United States District 6 Court. Today is August 27th, Mr. Smithgall, before we get started -- 8 would you swear the witness? 9 JOHN F. SMITHGALL, 10 having been first duly sworn, was examined and 11 testified as follows: 12 EXAMINATION 13 BY MR. WINGATE: 14 Q. Mr. Smithgall, you sat through a 15 deposition before in this case. 16 A. Mm-hmm (affirmative). 17 Q. I just want to go over some ground rules. 18 If there is anything that I say that doesn't make 19 sense, let me know. And if you don't understand me, 20 I'll ask it again. But if you know the answer, 21 answer it; answer it clearly and concisely. And if 22 it's something that you know -- you're under oath you have to answer that. If you need to go to the 24 bathroom, fine. I would ask that if I ask you a 25 question and you want to take a break, that you

7 1 finish the question -- answer the question before we 2 take a break, that sort of thing. 3 For "yes" or "no", please verbalize your 4 answers for the benefit of the court reporter so 5 that she can get it on the transcript. 6 Do you have any questions of me? 7 A. No. 8 MR. WINGATE: I want to mark this as 9 Plaintiff's Exhibit (Plaintiff's Exhibit #1 marked.) 11 BY MR. WINGATE: 12 Q. Mr. Smithgall, I'd ask you to look at 13 that. Familiarize yourself with it. And for the 14 record, I'll state that it is an order dated 15 May 13th, 2013, from Judge Land. 16 I would just direct your attention to 17 Page 9. If you look at the bottom paragraph of 18 Page 9, it states: "Renasant's Motion For Summary 19 Judgment is granted as explained in this order. The 20 clerk shall enter Final Judgment in favor of the 21 Plaintiff, Renasant Bank, Inc., against Defendant 22 Earth Resources of Franklin County, LLC, in the 23 amount of $9,173,244.15, and against Defendant John 24 F. Smithgall, jointly and individually, in the 25 amount of $4,086, "

8 1 Do you see that statement? 2 A. Yes, I do. 3 Q. Do you dispute that statement? 4 A. Yes. 5 Q. And why do you dispute that statement? 6 A. Well, I understand the Judge's order. I 7 understand the Court's order. I understand the 8 conclusion in the summary of that paragraph. But 9 based on what the former bank did -- I can't 10 remember the name -- Crescent Bank, I think they did 11 some very unethical things that would make me feel 12 that I don't owe that money, but it is what it is. 13 The Judge -- I mean, this is an order. I recognize 14 that. 15 (Plaintiff's Exhibit #2 marked.) 16 BY MR. WINGATE: 17 Q. I want to show you what will be marked as 18 Plaintiff's Exhibit And for the record, I'll state that this 20 is a judgment in this case dated 5/14/13. And it 21 states: "Judgment is also hereby entered in favor of 22 the plaintiff in the amount of $4,086, against 23 Defendant John F. Smithgall, jointly and 24 individually. These accounts shall accrue interest 25 from the date of entry of judgment at the rate of

9 1.11 percent per annum until paid in full. Plaintiff 2 shall also recover costs of this action." 3 Do you see that? 4 A. Yes. 5 Q. Do you dispute this statement? 6 A. I don't have enough personal knowledge to 7 be able to dispute this statement at this time. 8 Q. So you recognize this is a valid judgment? 9 A. I don't recognize it that the numbers are 10 accurate. I believe it was probably issued by the 11 Court. 12 (Plaintiff's Exhibit #3 marked.) 13 BY MR. WINGATE: 14 Q. All right. I would like to show you what 15 has been marked as Plaintiff's Exhibit And for the record, I will indicate that 17 this is a per curiam opinion published in the United 18 States Court of Appeals for the Eleventh Circuit 19 dated October 9, On Page 2 of this order it states: "We 21 have reviewed these orders and the entire record in 22 this action, finding no reversible error in the 23 District Court's grant of Summary Judgment to the 24 plaintiff on defendant's indebtedness to it. The 25 Judgment is to be affirmed."

10 1 Do you agree with that statement? 2 A. I agree that the Court found it accurate. 3 Q. Are you aware that this case can no longer 4 be appealed? 5 A. I haven't talked to my attorney about that 6 lately, but I think that's true. 7 Q. So you're aware that there is a judgment 8 against you in excess of $4 million that cannot be 9 appealed? 10 A. I'm not an attorney, and I don't know 11 always what can be appealed and what cannot. 12 Q. But you're aware that there is a judgment 13 against you in excess of $4 million? 14 A. Yes. 15 Q. Why haven't you paid it? 16 A. I really don't have the ability to pay it 17 at present. 18 Q. So it's your position that you don't have 19 the ability to pay the judgment? 20 A. Yes. 21 Q. Are you insolvent? 22 A. No. 23 Q. Have you declared bankruptcy? 24 A. No. 25 Q. Have you ever declared bankruptcy?

11 1 A. No. 2 (Plaintiff's Exhibit #4 marked.) 3 BY MR. WINGATE: 4 I want to show you what's going to be marked 5 Plaintiff's Exhibit 4. 6 Mr. Smithgall, this is the personal 7 financial statement of John F. Smithgall, and it 8 says the statement date is 2/28/14. 9 Do you recognize this document? 10 A. Yes. 11 Q. Did you prepare this document? 12 A. No. 13 Q. Who prepared this document? 14 A. My accountant. 15 Q. If you look on Page 2 of this document 16 which is marked with a Bates-stamped number on the 17 bottom JS_PJ_15637, is that your signature on the 18 bottom of this page? 19 A. Yes, it is. 20 Q. And so you did sign this on 3/24/14? 21 A. Yes, I did. 22 Q. Do you dispute any of the numbers in this 23 document? 24 A. Not at this time. 25 Q. On line 1 on the first page of this

12 1 document, it says, "Cash on hand in banks partially 2 pledged." And it says, "Amount: $1,760,975." 3 Do you see that? 4 A. Yes, I do. 5 Q. What does "partially pledged" mean? 6 A. I would have to go to the breakdown, to 7 the second page, and it's pledged at SouthCrest Bank 8 for a bond, I believe. 9 Q. What sort of bond? 10 A. I think it's a performance bond. 11 Q. So you're saying that the entire account 12 at SouthCrest Bank is pledged for a performance 13 bond? 14 A. The 1,716,206 is entirely pledged, yes. 15 Q. Are you able to withdraw money from that 16 account? 17 A. No. 18 Q. Who is your contact at SouthCrest Bank? 19 A. John Bramblett. 20 Q. Bramblett? 21 A. B-R-A-M-B-L-E-T-T. 22 Q. And where is this branch located? 23 A. Johns Creek, Georgia. Johns Creek, 24 Georgia. 25 Q. You say that this account is pledged for a

13 1 performance bond. What is that bond for? 2 A. It is for -- on behalf of Earth Resources 3 of Franklin County, LLC. 4 Q. Any other guarantors on that bond? Any 5 other -- anyone else have any stake in that bond? 6 A. No, not that I know of. 7 Q. So the bond, you say that SouthCrest Bank 8 is pledged entirely for Earth Resources of Franklin 9 County? 10 A. Yes. 11 Q. Under that section right there, it says 12 SunTrust checking, Owner, JFS. 13 Is that your personal account? 14 A. I think it is my personal account. It 15 could be a joint account with my wife, but I don't 16 know because there is not a number attached. 17 Q. You prepared this statement, or you signed 18 it? 19 A. I signed it. 20 Q. But you're not aware of the contents of 21 it? 22 A. I'm aware of the contents of it, as best I 23 could possibly be. I reviewed it with my 24 accountant. 25 Q. Does this Section A that we're looking at

14 1 represent all of your personal accounts? 2 A. As of February the 28th, yes. 3 Q. Okay. As of today, which banks of yours 4 hold personal accounts? 5 A. SunTrust, of course. And then I believe 6 Ameris and Community & Southern have everything 7 except -- I don't think I have a personal account at 8 SouthCrest. 9 Q. Community & Southern Bank? 10 A. Yeah. 11 Q. You don't believe that you have a personal 12 account at SouthCrest. Are there any other banks? 13 A. I could, but I don't know that there's a 14 personal account there. 15 Q. Any other banks that you have a personal 16 account? 17 MR. CHRISTY: Today? 18 MR. WINGATE: Today. 19 A. I can't think of any. 20 BY MR. WINGATE: 21 Q. Okay. Turn back to Page 1 of this 22 Exhibit. This is Plaintiff's 4. Line 11. It says 23 real estate owned, partially or indirectly, 24 $44,160,018. Do you see that? 25 A. Yes.

15 1 Q. Was that number accurate at the time? 2 A. I believe so. 3 Q. What does it mean, partially or 4 indirectly, on that? 5 A. Some of the entities that would own that 6 real estate would be owned by other parties. 7 Q. Okay. Have you differentiated on those? 8 Is that what's represented on the third page of this 9 document? 10 A. Yes. That was as of the 28th. 11 Q. Has that changed? Any of this changed? 12 A. I'm sure there must be some changes in 13 there, but I don't know what they would be at this 14 time. 15 Q. All right. I'm going to go through these 16 companies, individual companies, and ask you. 17 For AJS Investment Group, LLC, are you 18 still a member of that group, that company? 19 A. I'm not personally. 20 Q. How is your involvement with this LLC? 21 A. My involvement in that particular LLC is a 22 partial involvement in another entity. 23 Q. Which entity? 24 A. Give me a minute here. 25 Q. Okay.

16 1 A. It would be Hanover Group. 2 Q. Hanover Group? 3 A. Mm-hmm (affirmative). 4 Q. Are you a member of Hanover Group? 5 A. Yes, I am. 6 Q. And what percentage is your membership of 7 Hanover Group? 8 A. I believe I'm a 50 percent -- 9 Q. 50 percent owner of Hanover Group? Okay. 10 Who is the other 50 percent interest 11 holder in Hanover Group? 12 A. Two other individuals. 13 Q. Who are they? 14 A. My son, Jason, and a friend named Ray 15 Simmons. 16 Q. Ray Simmons? 17 A. Mm-hmm (affirmative). 18 Q. And what does AJS Investment Group, LLC, 19 own? 20 A. Rental houses. 21 Q. Do you know how many? 22 A. Ten, I believe. 23 Q. Where are they? 24 A. Fulton. DeKalb. 25 Q. Any other counties?

17 1 A. Could be. 2 Q. How would we find that out? 3 A. We could get a list of them. 4 Q. Okay. So I think we're probably going to 5 ask for that list. 6 I'm going to move down this. Is there 7 anything else that AJS Investment Group owns besides 8 rental houses? 9 A. Either now or formerly, they owned a few 10 single-family unbuilt-on lots. 11 Q. Where were they? 12 A. In Coweta County. 13 Q. Okay. Does it still own those lots? 14 A. They could have been sold, or they could 15 be partially still owned by AJS. 16 Q. Okay. Who would have access to those 17 records? 18 A. My partner. 19 Q. Who is your partner? 20 A. Asa Johnson. 21 Q. Asa Johnson? 22 A. Yeah. 23 Q. Where is Mr. Johnson? 24 A. He's here in Atlanta. 25 Q. Do you have a number for Mr. Johnson?

18 1 A. I don't have his number in my head. I 2 might be able to get you those, as well. 3 Q. Okay. Alaska Real Estate, LLC. Are you 4 the sole member of that company? 5 A. Yes. 6 Q. As an individual? 7 A. Yes, I am. Mm-hmm (affirmative). 8 Q. And what does it own? 9 A. It owns a house in the town of Soldotna, 10 Alaska. 11 Q. I'm not going to ask you to spell that 12 unless you know how to. 13 A. S-O-L-D-O-T-N-A. I'm pretty sure that's 14 right. 15 Q. Soldotna, Alaska? 16 A. Yeah. 17 Q. Does it have any other assets? 18 A. No. 19 Q. Appalachian Company; are you the sole 20 member of that company? 21 A. No. 22 Q. Who all are members of Appalachian 23 Company. 24 A. Appalachian Company would be owned by 25 Hanover Group.

19 1 Q. On this statement here where it says 2 Appalachian Company, it says percentage of 3 ownership: 100 percent. Is that statement 4 inaccurate on this sheet? 5 MR. HALLMAN: Is that on the financial 6 statement? 7 MR. WINGATE: It's on Page 3 of the 8 financial statement, which is Bates numbered A. I'm having trouble seeing it. Repeat your 10 question. 11 BY MR. WINGATE: 12 On this statement it says, from the line that starts 13 on the left, 4.84 acres River Point, Gainesville, 14 Georgia, titled in the name of Appalachian Company. 15 Percentage ownership: 100 percent. 16 A. Yeah, I think that's right. Yeah. 17 Q. So you're the sole member of Appalachian 18 Company? 19 A. No. 20 Q. Then A. Appalachian Company owns 100 percent. 22 Q. I see. All right. So how is Appalachian 23 Company -- you said it's owned wholly by Hanover 24 Group? 25 A. I believe Hanover now owns Appalachian

20 1 Company, right. 2 Q. And when did Hanover Group acquire 3 Appalachian Company? 4 A. I don't know that date. 5 Q. Was it in 2013? 6 A. Either '13 or '14. 7 Q. Okay. 8 A. One or the other. 9 Q. But you're not sure exactly when? 10 A. No. 11 Q. And it's the same Hanover Group of which 12 you're a 50 percent owner? 13 A. Yes, mm-hmm (affirmative). 14 Q. And Jason and Ray Simmons are your other 15 partners in that group? 16 A. They are partners in Hanover Group. 17 MR. CHRISTY: Members. Let's use the 18 right nomenclature. 19 THE WITNESS: They're members. 20 BY MR. WINGATE: 21 Q. Members. All right. Eufala Corp. Are 22 you the sole member of Eufala? 23 A. No. 24 Q. Who are the other members or owners of 25 Eufala Corporation?

21 1 A. I can't remember. 2 Q. Are you an officer of Eufala Corporation? 3 A. Yes. 4 Q. What's your title with Eufala Corporation? 5 A. I can't remember whether I'm president or 6 vice president. 7 Q. And who are the other officers? 8 A. I can't remember who they are now. I 9 remember who they used to be. 10 Q. Who did they used to be? 11 A. My wife Elaine and my son, Jason. 12 Q. Were they the only other owners of this 13 company? 14 A. I don't remember their ownership, but 15 there wouldn't be anybody else. 16 Q. Okay. So the only people that would have 17 owned Eufala Corporation would have been you, your 18 wife or your son? 19 A. Yeah. 20 Q. Okay. Georgia 20 Ventures, LLC. 21 A. Okay. 22 Q. What's your ownership interest in that 23 company? 24 A. I don't have any direct ownership in 25 Georgia 20.

22 1 Q. All right. What entity owns Georgia 20? 2 MR. CHRISTY: Or who owns Georgia 20? 3 Object to the form of the question. 4 BY MR. WINGATE: 5 Q. Who owns Georgia 20? 6 A. Eufala -- let me see. Georgia 20 is owned 7 by Highway 20, LLC. 8 Q. Who owns Highway 20, LLC? 9 A. Eufala and a fellow named Fred Skiba. 10 Q. Could you spell that? 11 A. S-K-I-B-A. 12 Q. Where is Mr. Skiba? 13 A. He's here in Atlanta. 14 Q. Do you have his contact information, phone 15 number? 16 A. No, not at this time. I can certainly get 17 it. 18 Q. So Eufala and Mr. Skiba own Highway 20, 19 LLC, which, in turn, owns Georgia 20 Ventures, LLC? 20 Is that the correct chain of title? 21 A. I don't remember whether the Highway Ventures is an LLC. I don't remember whether that's 23 just a piece of land, or whether that's another LLC. 24 Q. We have -- it's listed here as Georgia Ventures, LLC.

23 1 A. Okay. It may be that Eufala and Fred 2 Skiba own Georgia 20 Ventures, LLC. There may not 3 be another LLC. 4 Q. I understand. But you are, in turn, a 5 member of Eufala, an owner of Eufala? 6 A. I'm not directly, no. 7 Q. You don't own any ownership -- excuse me. 8 Are you saying that you don't have any ownership 9 interest in Eufala? 10 A. I don't remember the owners of Eufala. 11 That's the one I said I didn't remember on. But I 12 can find out. 13 MR. HALLMAN: Can we take a little break? 14 MR. WINGATE: Okay. We'll take a break 15 for five minutes. 16 THE WITNESS: Sure. 17 (Recess 10:47-10:52 a.m.) 18 MR. WINGATE: Back on the record. 19 BY MR. WINGATE: 20 Q. Okay. I really want to know, who are the 21 names of all the owners of Eufala Corporation? 22 MR. CHRISTY: Asked and answered. But you 23 can answer. You can answer his question. 24 A. Presently? 25 BY MR. WINGATE:

24 1 Yes. 2 A. I'd have to go look. 3 Q. You don't know? 4 A. I'm not going to guess at it. 5 Q. Well, can you name any of them? 6 A. I'm not sure unless I go look. 7 Q. Where would you have to look? 8 A. I'd have to check with -- to find out what 9 Hanover owns and then go back and look and see if who still has Eufala, if, in fact, Hanover is not 11 the owner. 12 Q. Would Hanover be the sole owner of Eufala? 13 A. If it owns any of it, it probably is the 14 sole owner, yeah. 15 Q. But you don't know if Hanover owns any of 16 it? 17 A. Not at this time. I'd have to go look, or 18 I can call somebody and ask them. 19 Q. Did you, yourself, ever individually own 20 any part of Eufala Corporation? 21 A. Yes, I did. 22 Q. Until when? 23 A. Until within a year, I think. 24 Q. So you owned part of Eufala Corporation up 25 until a year ago?

25 1 A. Within a year. 2 Q. Within a year ago? 3 A. I don't know the date. 4 Q. Would you say that you got rid of your 5 ownership interest in the middle of 2013? 6 A. I'd have to go look. I can't remember 7 when I got rid of it. 8 Q. Did you own any part of Eufala Corporation 9 in January of 2013? 10 A. Probably, yeah. Yeah, I did. I had to 11 have, yeah. 12 Q. Did you own any of Eufala Corporation in 13 June of excuse me ? 14 A. I don't know. 15 Q. Don't know? 16 A. I don't remember. 17 Q. And your ownership interest in Eufala 18 Corporation, what did you do with it? 19 A. I'd have to go and decide whether Hanover 20 owns all or none, or whether I'm still a part owner. 21 Q. Of Hanover, or of Eufala? 22 A. Of Eufala. 23 Q. So you're not aware if you're still an 24 owner of Eufala? 25 A. If Hanover owns it, then I don't own any

26 1 of it. 2 Q. But you don't know if Hanover owns it? 3 A. That's what I've said. 4 Q. But you do own part of Hanover? 5 A. Yes, I do. 6 Q. Is there any other entity you would have 7 transferred your interest in Eufala to? 8 MR. CHRISTY: Object to the form of the 9 question. Part of it's speculation, also. 10 MR. WINGATE: I don't believe there's any 11 speculation in MR. CHRISTY: You're asking him -- I mean, 13 who else -- do you want him to make it up? Who else 14 would you have transferred it to? I'm not sure he 15 said he transferred it to anybody yet, but he said 16 he's uncertain. 17 THE WITNESS: I can't think of anybody 18 else I would have transferred it to. 19 BY MR. WINGATE: 20 There's a company identified here called Invesprop, 21 LLC. What percentage ownership do you have of that 22 company? 23 A. What page did you find that on? 24 Q. If you look at the page marked Bates 25 stamped JS_PJ_15638, this page right here with the

27 1 spreadsheet on it, there is a line indicated -- it 2 starts -- it says 39 platted lots Laurel Glen 3 Subdivision, Hall County, titled in the name of 4 Invesprop, LLC. Do you see that? 5 A. Yes. 6 Q. I apologize. It's difficult to read. 7 A. Well, that's not necessarily your fault. 8 Yeah, I see. 9 Q. And my question is: What is your 10 ownership interest in Invesprop? 11 A. I don't have any -- let me see. I think I 12 have 67 percent. 13 Q. Okay. Do you know who the other interest 14 holder in Invesprop is? 15 A. Jason Smithgall. 16 Q. Your son? 17 A. Mm-hmm (affirmative). Yes. 18 Q. Are you direct owners of Invesprop, LLC, 19 or is there a subsidiary or an intermediate company? 20 A. Good question. 21 Q. So are you not aware of the answer to that 22 question? 23 A. I'd have to go look it up. Sorry. 24 Q. So as we sit here today, though, you don't 25 know the answer?

28 1 A. I do not know the answer to that, exactly 2 how that's held. 3 Q. On this document, this page, there's also 4 identified a company called JFS Properties, 5 Incorporated. Do you see that? 6 A. Yes. Mm-hmm (affirmative). 7 Q. What is your ownership interest in JFS 8 Properties? 9 A. It's held by Hanover, I believe. 10 Q. Is Hanover the sole member or sole owner 11 of JFS Properties? 12 A. I'm not sure. 13 Q. How would we find that out? Who would 14 have that information? 15 A. Our bookkeeper would have that. 16 Q. Who is your bookkeeper? 17 A. Paige Moore. 18 Q. Paige Moore? 19 A. Yeah. 20 Q. Does she work for you directly? 21 A. Yes. 22 Q. Does she work in your office? 23 A. Yes. 24 Q. How long has Ms. Moore worked for you? 25 A. Only two or three months.

29 1 Q. Who was your bookkeeper prior to 2 Ms. Moore? 3 A. Sandy Montgomery. 4 Q. And she worked in your office? 5 A. No. She's not there. 6 Q. But she did work in your office? 7 A. She did work in my office. 8 Q. And how long was Ms. Montgomery there? 9 A. She was there about seven years. 10 Q. Do you know where Ms. Montgomery went? 11 A. She's around. She's in town. 12 Q. Would you have her contact information 13 somewhere? 14 A. At the office, yeah. 15 Q. Are you an officer of JFS Properties? 16 A. I don't believe so. 17 Q. Were you ever an officer of JFS 18 Properties? 19 A. Yes. 20 Q. And when did you relinquish your title as 21 officer? 22 A. Within the last year. 23 Q. Within the last 12 months? 24 A. Yes. 25 Q. And today is August 27th, 2014; correct?

30 1 A. Correct. 2 Q. All right. Are you an officer in 3 Invesprop, LLC? 4 A. If it's owned by Hanover, the answer would 5 be no. 6 Q. Who are the officers of Invesprop? 7 A. I would be looking for members or 8 managers, I think, in the LLC; and I don't recall 9 right now. 10 Q. So you don't know the names of the members 11 or the names of the managers? 12 A. Well, I don't know -- that same property 13 that I don't recall the ownership of, the 39 platted 14 lots. It could very well be owned by Hanover, and I 15 would know the answer about Hanover. 16 Q. When was Hanover formed? 17 A. In the last few months. 18 Q. Would it be within the last six months? 19 A. I would say it would be in the last 10 to months, anyway. 21 Q. Do you have any documents that you brought 22 with you today regarding Hanover? 23 A. I haven't brought any documents concerning 24 Hanover, and I don't know whether they were 25 requested or not.

31 1 Q. Who formed Hanover? Who is the organizer? 2 A. The Private Client Group. 3 Q. Private? 4 A. Client Group, mm-hmm (affirmative). 5 Q. What's the Private Client Group? 6 A. It's a law firm. 7 Q. Where are they based out of? 8 A. They are here in Atlanta. 9 Q. Is that their official name? 10 A. That's what we know them by. 11 Q. Private Client Group? 12 A. Mm-hmm (affirmative). 13 Q. And they are in Atlanta? 14 A. Yeah. 15 Q. And they formed Hanover for you in the 16 last 10 to 12 months? 17 A. (Nods head affirmatively.) 18 Q. Since Hanover has been formed, what's been 19 the contributions into Hanover? 20 A. Some of my assets have gone into entities 21 of other real estate companies, as well as some of 22 my other assets have gone into Hanover. 23 Q. Specifically what? 24 A. Equity interest in other Georgia 25 subchapter S's or LLCs.

32 1 Q. Which ones? 2 A. I'd have to sit down and go through them 3 one at a time and tell you. 4 Q. Tell me the ones that you know. 5 A. I think we sent that to your firm. And if 6 you show me that paper, I'll go through them with 7 you. 8 Q. I'm unaware of any information regarding 9 Hanover being sent to our firm. Now, if you sent it 10 to Mr. Christy, he may not have given it to us. 11 MR. CHRISTY: I've given you everything 12 I've got. 13 A. Yeah. My assets are shown here on this 14 financial statement as of February. 15 BY MR. WINGATE: 16 Yes. But you said that Hanover was formed within 17 the last 10 to 12 months, so that would be -- this 18 doesn't reflect Hanover anywhere, and I want to know 19 what's in Hanover. 20 A. You mean Hanover is not mentioned on here 21 anywhere? 22 Q. No, sir, it isn't. 23 A. I believe it is. 24 Q. Could you show me where? 25 A. (Indicating.)

33 1 Q. I see. All right. You're pointing to, on 2 Page 15637, Section G, Hanover Group Holdings, LLC, 3 50 percent ownership, and that the present value is 4 $42,149,699. Is that what you're referring to? 5 A. That's what I pointed to. 6 Q. When it says estimated present value of 7 the 42-million-dollar figure, is that just your 8 50 percent interest, or is that the interest of the 9 entire company? 10 A. That would be my contribution. 11 Q. So your stake in Hanover Group is 12 approximately in excess of $42 million? 13 A. I believe that's right. 14 Q. Is any of that property able to be sold? 15 A. Not by MR. CHRISTY: Let me object to the form of 17 the question, because I don't think the testimony is 18 that Hanover owns -- there's no foundation that 19 Hanover owns real estate. I don't know what 20 property you're talking MR. WINGATE: Let's not coach the witness 22 so much. 23 MR. CHRISTY: All right. I object to the 24 form of the question. 25 BY MR. WINGATE:

34 1 Q. Are any of the assets owned by Hanover 2 able to be sold? 3 A. Yeah -- 4 Q. Okay. 5 A. -- but not in my sole discretion. 6 Q. What else does Hanover own besides 7 interest in real estate? 8 MR. CHRISTY: I'll object to the form of 9 the question. It mischaracterizes his testimony. 10 Go ahead. 11 A. I can't think of anything. 12 BY MR. WINGATE: 13 Q. Hanover doesn't have any investments, 14 liquid investments, of any accounts, stocks, bonds, 15 that sort of thing? 16 A. No stocks, bonds. 17 Q. Besides real estate interests, what does 18 Hanover own? 19 A. Just equity in real estate. 20 MR. CHRISTY: Can I clarify something just 21 so the record is clear? Are you saying that 22 Hanover -- when he keeps asking you about interest 23 in real estate, are you saying Hanover owns title to 24 real estate? 25 THE WITNESS: No.

35 1 MR. CHRISTY: Okay. 2 THE WITNESS: Hanover owns -- 3 MR. CHRISTY: I want to get that clear, 4 because you're going off on maybe a misapprehension 5 of what Hanover owns, so... 6 BY MR. WINGATE: 7 Q. It's my understanding -- and tell me if 8 I'm wrong -- that Hanover owns interest in companies 9 that own real estate. 10 A. There you go. 11 MR. CHRISTY: That's right. All right. 12 Because you kept saying, does it have real estate to 13 sell? I mean, its assets are not the real estate. 14 I just want to make that clear because you were 15 not -- never mind. If you're clear on that way -- I 16 have an objection to your question. Okay. But go 17 on. 18 BY MR. WINGATE: 19 Q. But this statement says, and you stand by 20 it, that your interest in Hanover is approximately 21 $42 million? 22 A. Yes. 23 Q. All right. I want to go to Nacoochee 24 Corp. 25 A. Right.

36 1 Q. What is your ownership interest in 2 Nacoochee? 3 A. Nacoochee is owned by Hanover. 4 Q. 100 percent? 5 A. Yes. 6 Q. What does Nacoochee Group own? 7 A. This list of properties here. 8 Q. And does it own anything else? Does it 9 have any accounts, investments, that sort of thing? 10 A. Accounts? 11 Q. Yes. Does Nacoochee Corp. have a bank 12 account? 13 A. A bank account? 14 Q. Yes, sir. 15 A. Oh, yeah. Sure. 16 Q. Where is that? 17 A. SunTrust. 18 Q. Does Nacoochee Corp. have any investments 19 that aren't related to real estate? 20 A. Nacoochee owns a vehicle. 21 Q. Okay. What kind of vehicle? 22 A. A Ford truck. 23 Q. Where is it kept? 24 A. At its office. 25 Q. Where is its office?

37 1 A Chamblee Dunwoody Road. 2 Q. Is that your office? 3 A. Yeah. 4 Q. Is that DeKalb County? 5 A. Mm-hmm (affirmative). Yes. 6 Q. Where is the principal place of business 7 for Hanover? 8 A Chamblee Dunwoody Road. 9 Q. Were you ever an individual owner of 10 Nacoochee Corp.? 11 A. Yes. 12 Q. When did you relinquish your ownership 13 interest in Nacoochee Corp.? 14 A. In the last 10 or 12 months, I believe. 15 Q. Would that have been concurrent with the 16 formation of Hanover? 17 A. I can't say that it would be the exact 18 date or anything, but Q. Before you relinquished your interest in 20 Nacoochee Corp., what percentage of Nacoochee Corp. 21 did you own? 22 A. I'd have to go look. 23 Q. Would it have been the majority? 24 A. Yes, it would have been the majority. 25 Q. Are you an officer of Nacoochee Corp.?

38 1 A. I used to be, but I don't know whether I 2 presently am. 3 Q. When were you an officer of Nacoochee 4 Corp.? 5 A. In early '13, I was an officer. 6 Q. What was your title? 7 A. President. 8 Q. What's your ownership interest in 9 Southfund Brothers? 10 A. I'm a one-third owner with my two 11 brothers. 12 Q. Who are your two brothers? What's their 13 names? 14 A. Charles Smithgall and Thurmond, 15 T-H-U-R-M-O-N-D. 16 Q. They live in the Atlanta area? 17 A. Charles does. 18 Q. Where does Thurmond live? 19 A. New York City. 20 Q. Do you own your percentage of Southfund 21 Brothers as an individual? 22 A. Yes. 23 Q. And that's the current ownership of 24 Southfund Brothers today, you as an individual, in 25 that LLC?

39 1 A. At least as of February the 28th. And, 2 yes, today, as well, yeah. 3 Q. All right. What's your ownership interest 4 in Southfund Development? 5 A. Development or Development -- 6 Q. Pardon. Southfund Development -- 7 A. -- II? 8 Q. -- II. Excuse me. 9 A. Okay. That's all right. I just -- I was 10 confused because we used to have one that died, but 11 it wasn't the first one, that died years ago Q. I understand. 13 A. -- when it got rid of all its assets. Let 14 me see. You're talking about Southfund Development 15 II. Okay. 16 Q. Yes, sir. 17 A. I am a percent owner. 18 Q. As an individual? 19 A. Yes. 20 Q. Who are the other owners? 21 A. Charles Smithgall and Thurmond Smithgall. 22 Q. Are these your brothers again? 23 A. My brothers, mm-hmm (affirmative). 24 Q. Are you an officer of that company? 25 A. Yes, I am.

40 1 Q. Do you know your title? Are you a 2 manager? 3 A. I'm a -- well, it's a Georgia LLC. And 4 I'm not trying to -- I'm not an attorney, but I -- 5 Q. I understand. 6 A. But I keep thinking membership and manager 7 for one and officers for the old ones. 8 Q. Yes. 9 A. That's a Georgia subchapter S. So I would 10 be a vice president of that one. 11 Q. For Southfund Development II, you would be 12 vice president? 13 A. That's my title of Southfund II. 14 Q. Okay. And there's also here a Southfund 15 Development III. 16 A. Correct. 17 Q. And I'll ask you, what's your percentage 18 of ownership of that entity? 19 A percent. 20 Q. When we look here in this percentage of 21 ownership here, it says -- there's a percentage 22 beside each one. Do you see that on this chart? 23 A. Yeah, that's what I'm looking at. 24 Q. Is that your percentage ownership as an 25 individual?

41 1 A. In the ones that we've just covered, yes. 2 Q. Are there any where that doesn't represent 3 that, that you don't own 100 percent or whatever 4 percentage it states in that column? 5 A. Well, all the ones in gray, I don't. 6 Q. So even in February of 2013, you would not 7 have had 100 percent interest in these particular 8 companies where it says 100 percent -- strike that 9 question. That's confusing. 10 A. Okay. Excuse me. 11 (Off-the-record discussion.) 12 (Recess 11:21 to 11:24 a.m.) 13 MR. WINGATE: All right. Back on the 14 record. 15 BY MR. WINGATE: 16 Q. So you own two-thirds, percent, of 17 Southfund Partners III; correct? 18 A. Yes, I do. 19 Q. Okay. And you are an officer of that 20 company, entity? 21 A. That is a Georgia partnership of some 22 type, and it doesn't have officers. I think it 23 has Q. Partners? 25 A. -- partners, yeah.

42 1 Q. So you're a partner? 2 A. Yes, I am. 3 Q. All right. What's your ownership interest 4 in VOW, LLC? 5 A. I don't think I have any interest in that. 6 I think that is a Hanover ownership. 7 Q. So Hanover has an interest in VOW, LLC? 8 A. Right. 9 Q. And you have 50 percent of Hanover? 10 A. Right. 11 Q. When did you pass over your interest in 12 VOW, LLC, to Hanover? 13 A. 10 to 12 months ago, I think. I don't 14 know. In 10 or 12 or less. 15 Q. Prior to passing that interest to Hanover, 16 how did you own any interest in VOW, LLC? 17 A. I believe it was owned by one of the 18 Georgia subchapter S corporations that I had, and I 19 don't know which one without going and looking it 20 up. 21 Q. Would you have been the sole owner of that 22 subchapter S? 23 A. I don't know that. 24 Q. Are you an officer of VOW, LLC, or a 25 member or a manager or have any sort of leadership

43 1 role? 2 A. I had some kind of leadership role at one 3 time, but I think when -- it went into Hanover. I 4 don't necessarily -- I don't have that. 5 Q. Prior to passing it to Hanover, what would 6 your role have been with that company? 7 A. I probably -- well, again, a Georgia 8 subchapter S owned that 60 percent that you see 9 there. And I was an officer of the Georgia 10 subchapter S, either a president or a vice president 11 back then. 12 Q. So were you then, in turn, a manager of 13 VOW, LLC? 14 A. I don't remember whether the Georgia 15 subchapter S was or whether I was. Possibly either 16 a co-manager or the entity itself was the 17 co-manager. Now, I don't know that you can legally 18 have a co-manager as a Georgia subchapter S, but 19 I've seen it stated that way before. 20 Q. Who is the other owner of VOW, LLC? 21 A. I think that the 40 percent remaining 22 interest is probably owned by about four 23 individuals. 24 Q. What are their names? 25 A. I can probably name two of them.

44 1 Q. Name them. 2 A. Max Grelier, G-R-E-L-I-E-R, or his entity, 3 and a fellow named Remy, R-E-M-Y, Gross, G-R-O-S-S, 4 or his entity. And I can't tell you right now who 5 the others are. 6 Q. Where do these gentlemen live? 7 A. Max Grelier lives in Huntsville, Alabama. 8 Remy Gross lives in California somewhere, and I 9 don't know the city. 10 Q. What does VOW, LLC, own? 11 A. It owns a shopping center in Huntsville. 12 Q. Is that represented to be worth on this 13 $13.2 million? Let me rephrase that question. 14 Does the $13.2 million that's represented 15 on this represent the 60 percent interest in that 16 shopping center? 17 A. I believe that's accurate, before debt, 18 yeah. 19 Q. Okay. When was that shopping center 20 constructed? 21 A. I don't recall. I don't remember. 22 Q. In the past 10 years? 23 A. No. It would be in the '80s. It would be 24 in the '80s. 25 Q. There's a company here called JFS Vision,

45 1 LLC. What's your interest in that company? 2 A. I don't have a direct interest in that 3 company. I think it's owned by one of the other 4 Georgia subchapter S's. Probably -- probably JFS 5 Properties. 6 Q. Would it be wholly-owned by JFS 7 Properties? 8 A. I'd have to go look and see. I just... 9 Q. And what's your ownership in JFS 10 Properties? 11 A. I think Hanover owns JFS Properties. 12 Q. So your interest in JFS Vision is through 13 Hanover? 14 A. I can't remember. 15 Q. Why did you decide to form Hanover? 16 A. It is -- after -- three or four things 17 have happened over the years. I had a heart flutter 18 six years ago. And I have been wanting to 19 consolidate the complications of my businesses 20 through some kind of succession, as well as I just 21 turned 70 in March. And I have been doing some 22 estate planning and some succession planning 23 starting really about seven years ago. And then I 24 had the heart scare, and I had the ablation done. 25 And I have had my son in my business for about

46 1 eight years now. And he has argued with some of my 2 decisions concerning going forward in the manner we 3 were, and it was getting too complicated. We 4 couldn't always keep up with everything. 5 So we wanted to do a succession for my 6 age, my potential retirement, my health, 7 simplification and becoming more functional to do 8 business in the real estate market. 9 Furthermore, I got out of the stock 10 market. And since I've been in real estate years, we are poising ourselves for our little 12 company to take advantage of some of the real estate 13 market comeback, although we all know it hasn't come 14 back yet much. Some of it has; some of it hasn't, 15 but Q. Do you have any other children? 17 A. I've got two more sons. 18 Q. What are their names? 19 A. Jonathan is the oldest, and David is the 20 youngest. 21 Q. Are they involved in the business? 22 A. They have been a little bit in the past, 23 but not right now. 24 Q. Are they members of Hanover? 25 A. No.

47 1 Q. Are they members of any of the other 2 companies that we've talked about? 3 A. No. 4 (Plaintiff's Exhibit #5 marked.) 5 BY MR. WINGATE: 6 Q. I want to move to what's going to be 7 marked next as Plaintiff's Exhibit 5. And I'll 8 represent to you this is a statement from 9 J.P. Morgan Securities, statement period August 31st 10 through September 30th, 2013, and it's Account 11 No AFS. 12 Do you recognize this account? 13 A. It looks familiar. 14 Q. Is this an account held in your individual 15 name? 16 A. I believe so. 17 Q. Did you transfer $6,423,199 out of this 18 account? 19 A. Yes. 20 Q. Where did that money go? 21 A. I'd have to go look it up to be able to 22 tell you where this particular chunk of money went. 23 Q. You don't know where it went, as we sit 24 here today? 25 A. I know it went to some good places, but I

48 1 don't -- I can't tell you -- it didn't go into the 2 wind. It went into real estate companies. 3 Q. And what did you get in exchange for this? 4 A. I either got promissory notes or 5 capitalization for a company that I had an interest 6 in, or one of my entities had an interest in. 7 Q. Which ones; do you know? 8 A. No, I couldn't tell you right now. Unless 9 you show me a piece of paper that has it on there, 10 and I could tell you, maybe. 11 Q. Do you have any documentation showing what 12 you got for it? 13 A. I'm sure there is a way to account for it, 14 yeah. It didn't go -- it didn't disappear. 15 Q. But as we sit here today, you can't tell 16 me where this money went? 17 A. No, I can't tell you exactly where this 18 particular money went. 19 Q. But it went to an entity that you own? 20 A. It might have gone to two or three or four 21 entities that I might have had an interest in. 22 (Plaintiff's Exhibit #6 marked.) 23 BY MR. WINGATE: 24 Q. I'm going to mark this Plaintiff's 25 Exhibit 6. And this is another statement from

49 1 J.P. Morgan Securities. It's dated statement period 2 June 29th through July 31, 2013, and it's Account 3 No AL7. 4 Do you recognize this account? 5 A. Yes. 6 Q. Is this in your individual name? 7 A. Yes. 8 Q. It says here on 7/23/13, funds wired to 9 SunTrust Bank in the amount of $2.5 million. Do you 10 see that? 11 A. Yes. 12 Q. Do you remember that transaction? 13 A. As I sit here today, I don't recall this 14 particular transaction, no. 15 Q. Do you know where that money went? 16 A. It went to that SunTrust account. 17 Q. Which account is that? 18 A. I don't know. I don't memorize the 19 numbers, but I could look it up, though, and find 20 out. 21 Q. It went to one of your accounts? 22 A. Yes, I think so. 23 Q. What was this transfer for? 24 A. I don't remember exactly. 25 Q. Do you know if you got anything in

50 1 exchange for this transfer? 2 A. I'm sure I did. 3 Q. What did you get? 4 A. I don't know at this time. I probably 5 got -- it could have been a capital contribution to 6 an entity that I had an interest in through -- 7 directly or indirectly. 8 Q. Do you know which entity? 9 A. Not as I sit here, no. I don't know which 10 entity. 11 Q. Would it be an entity that you controlled? 12 A. I might have controlled it at the time. 13 Q. How much money is left in this account 14 today? 15 A. I don't recognize the account, so I don't 16 know. 17 (Plaintiff's Exhibit #7 marked.) 18 BY MR. WINGATE: 19 Q. I'm going to mark this as Plaintiff's 20 Exhibit A. Now, I want a clarification, if I could. 22 Q. Go ahead. 23 A. If you're talking about this account, this 24 is my account. But when I say I don't recognize it, 25 I'm looking at this SunTrust number over here, and I

51 1 thought you wanted me to recognize that SunTrust 2 number, and I don't. 3 Q. Okay. So you recognize the -- 4 A. I recognize the J.P. Morgan. 5 Q. I understand. 6 A. And I recognize the legitimacy of the 7 transfer, but I don't recognize the SunTrust 8 account. 9 Q. You don't recognize the receiving account? 10 A. I don't recognize the receiving. That's 11 what I meant. 12 Q. I understand. That's fine. 13 A. And I think I answered it incorrectly. 14 Q. I understand. So we'll mark this one 15 Exhibit 7. And I'll say this is a stack of 16 documents that have been Bates stamped. On the 17 front page it's JS_PJ_ And I'll ask you to 18 flip through this document to go to the page that's 19 marked JS_PJ_ A. Okay. 21 Q. And this says it's statement period 22 August 31st through September 30th, In the transaction detail as it goes down, 24 it indicates that there is a transfer on 9/13/13; 25 description, TFR margin to cash in the amount of

52 1 $41, Do you see that? 2 A. Yes. 3 Q. Where did that money go? 4 A. I don't know. TFR margin. 5 Q. Go down on the same page. It says date, 6 time -- or month, day. On 9/8/13, a journal 7 transaction to , $1.5 million. What was 8 that transaction? 9 A. I don't know. 10 Q. You don't have any idea where that money 11 went? 12 A. Well, did it leave, or does it -- I don't 13 know that it left. Did it leave? 14 Q. Where did it go? Did it go between 15 accounts? 16 A. I don't know. It could have gone from one 17 account to the other. I don't know. 18 Q. On the next day there's another similar 19 transaction. It says it's in the amount of 20 $924, Do you know where that money went, 21 what that transaction was? 22 A. Not as I sit, I don't. I could go figure 23 it out, talk to my broker and find out. 24 (Plaintiff's Exhibit #8 marked.) 25 BY MR. WINGATE:

53 1 I want to mark this as Plaintiff's 8. This document 2 says J.P. Morgan Securities, statement period of 3 August 31 through September 30th, And it 4 states there's funds wired to SunTrust Bank in the 5 amount of $4,959, Do you see that? 6 A. Yes. 7 Q. Do you remember this transaction? 8 A. Not particularly, no. 9 Q. Did you request that these sums be 10 transferred? 11 A. I believe I did. 12 Q. What was the purpose of this transfer? 13 A. Capitalization or a loan to some of our 14 real estate entities. 15 Q. Which entity? 16 A. I don't have any idea at this time without 17 looking it up. 18 Q. What did you get in exchange for that, 19 capitalization or a note? 20 A. Capitalization, note, in something that 21 would reflect my capital account or ownership. 22 Q. What documents would we have to show that? 23 A. It might just be entries on our books. I 24 don't know. 25 Q. Whose books -- where would these books be

54 1 kept? 2 A Chamblee Dunwoody Road. 3 Q. That's your primary office? 4 A. Right. 5 (Plaintiff's Exhibit #9 marked.) 6 BY MR. WINGATE: 7 Q. I want to mark this Plaintiff's Exhibit 9. 8 And this is a stack of documents. The first page is 9 Bates stamped JS_PJ_ And I'll ask you to turn 10 to the page, which is Bates stamped A. I'm there. 12 Q. Under the electronic transfers, on 1/16 13 funds transferred, wire funds sent. It says 14 beneficiary: John F. Smithgall, $1 million. 15 Do you recall this transaction? 16 A. Not particularly, no. 17 Q. Do you know what this transaction is for? 18 A. No. I can't -- I can't remember. 19 Q. It says Comments: Account No., a series 20 of Xs, Which account is that? 21 A. Probably -- well, I don't know. I can't 22 remember. I don't have the account numbers 23 memorized. It's a SunTrust account, I'm sure. 24 Q. It's a SunTrust account? 25 A. I'm sure it is, yeah.

55 1 Q. Where is this money now? 2 A. It's probably -- it's got to be in one of 3 our real estate entities. 4 Q. Which one? 5 A. I don't know. 6 Q. On February 28th, it says funds 7 transferred, wire funds sent to Nacoochee 8 Corporation in the amount of $6 million. 9 Do you see that? 10 A. Yes, I do. 11 Q. What was the purpose of that transaction? 12 A. Capitalization or a note or a loan to 13 Nacoochee Corporation. 14 Q. Do you have any documentation that shows 15 if that was a loan or a capitalization? 16 A. I'm sure I do. 17 Q. What did you get in exchange, a greater 18 percentage of Nacoochee Corporation? 19 A. I either got a bigger capital account or 20 an increase in something, but I can't tell you what 21 it was. 22 Q. Now, at that time, in February of '13, 23 were you the primary owner of Nacoochee Corporation? 24 A. In February of '13? 25 Q. Yes, sir.

56 1 A. I can't remember the date, whether I was 2 or whether Hanover had come in at that time, or not. 3 Q. But it would have been Hanover, if not 4 you? 5 A. If not me. 6 Q. Yes, sir. Also, here it says on 7/30, 7 wire funds sent to John F. Smithgall, an account 8 number ending 4098 in the amount of $4 million. Do 9 you remember that transaction? 10 A. Not particularly, no. 11 Q. Do you know where this account would have 12 been? 13 A. I would suspect SunTrust. 14 Q. For each of these transactions, did you 15 order these transactions to take place? 16 A. Yes. 17 Q. On 9/11, there's a transaction that says 18 wire funds sent to John Smithgall, $4,772, Do you see that transaction? 20 A. Yes. 21 Q. What was the purpose of that transaction? 22 A. I don't know the particular purpose of the 23 transaction. 24 Q. Do you know what you got in exchange for 25 that?

57 1 A. Something of value. 2 Q. Anything specific that you can identify 3 there? 4 A. Not at this time. 5 (Plaintiff's Exhibit #10 marked.) 6 BY MR. WINGATE: 7 Q. We'll mark this Plaintiff's 10. And I 8 believe this is -- I'm sorry. This is just a copy 9 of that same page. So we'll just make it 10, but 10 we've already gone over the transactions on this 11 page. 12 MR. CHRISTY: Can I take 90 seconds? 13 MR. WINGATE: Sure. 14 (Recess 11:52 to 11:56 a.m.) 15 BY MR. WINGATE: 16 Q. Going back to Exhibit 10, I just want to 17 ask one more question. Does that indicate that over 18 $15 million flowed out of that account on that 19 statement? 20 A. That's what it shows. 21 (Plaintiff's Exhibit #11 marked.) 22 BY MR. WINGATE: 23 We'll mark this Plaintiff's 11. This is a document 24 that's Bates stamped JS_PJ_ And it says the 25 statement period of September 1 through 30 for 2013.

58 1 Do you see that? 2 A. Right. 3 Q. Do you recognize this account? 4 A. It looks like my account. 5 Q. It indicates that within that statement 6 period, $2,077,500 were in deposits and withdrawals 7 from that account. Do you see that? 8 A. Yes. 9 Q. And that this account changed in account 10 value. It went down by $2,063, Do you 11 recognize that? It's at the bottom where it says 12 "Total change in account value." 13 A. Is that the number you're talking about 14 right there (indicating)? 15 Q. Yes, sir. It's at the bottom of that it's in the highlighted -- it's hard to see. 17 A. I can't read the number, but it's over 18 $2 million. I can tell you that. 19 Q. Yes, sir. Where did that money go? 20 A. Does it not show where it went? It went 21 to some bank account, I bet you. 22 Q. Do you have any recollection of where it 23 went? 24 A. No, not this day. 25 / / /

59 1 (Plaintiff's Exhibit #12 marked.) 2 BY MR. WINGATE: 3 Q. I'm going to show you what's going to be 4 marked as Plaintiff's This is a Bates-stamped set of documents. 6 And I want you to turn to Page JS_PJ_ It's 7 towards the back of this. 8 A. Okay. There's another numbering system at 9 the bottom of the right-hand side. Would that be of 10 interest? 11 MR. CHRISTY: It's the next-to-the-last 12 page. 13 BY MR. WINGATE: 14 Q. It's the next-to-the-last page. 15 A. Okay. 13 of 14. Okay. 16 Q. Yes, sir, that's it. We're on the same 17 page. It says on 9/4/13, funds paid, wire funds 18 disbursed in the amount of $2,077,500. Do you see 19 that? 20 A. Yes. 21 Q. Do you recall that transaction? 22 A. Not particularly, no. 23 Q. Did you order this transaction to take 24 place? 25 A. Yes.

60 1 Q. Do you know where this money went? 2 A. I can't tell you what account it went to. 3 Q. Do you know which bank it would have gone 4 to? 5 A. I don't know. More than likely, SunTrust. 6 Q. Which accounts did you hold at SunTrust? 7 A. I had a joint account with my wife. And 8 then I had my Social Security account, and I think I 9 had another one in my name. 10 Q. Do you still have accounts at SunTrust? 11 A. I've got an account that my paycheck goes 12 into, and I've got a Social Security account. They 13 are still there. 14 Q. Which bank do you have your personal 15 accounts now? 16 A. Community & Southern and SunTrust and 17 Ameris. A-M-E-R-I-S. 18 Q. Any other banks? 19 A. The only other one would be the SouthCrest 20 thing, but I don't think that's -- I don't know that 21 that's a checking account at all. 22 MR. WINGATE: Let's mark this as 23 Plaintiff's (Plaintiff's Exhibit #13 marked.) 25 BY MR. WINGATE: