Among the Among the Systemic Corruption Examples At Its Worst   - Crushing The Largest Excecutive Club In History

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3059

19

20 Court Reporters: HARRY RAPAPORT
OWEN M. WICKER
21 United States District Court
Two Uniondale Avenue
22 Uniondale, New York 11553
(516) 485-6558
23
24 Proceedings recorded by mechanical stenography, transcript
produced by Computer-Assisted Transcription
25

HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
3061

1 M O R N I N G S E S S I O N

2

3 THE CLERK: Jury entering.

4 (Whereupon, the jury at this time entered the

5 courtroom.)

6

7 W E N D I S P R I N G E R,

8 called as a witness, having been previously

9 duly sworn, was examined and testified as

10 follows:

11

12 THE COURT: Good morning, members of the jury,

13 please be seated. I want to thank you for doing a valiant

14 job and getting here on time almost. Most of you did. I

15 understand that there possibly would be a delay. However,

16 we are getting started in pretty good time considering the

17 weather.

18 You may proceed.

19 MS. SCOTT: Thank you, your Honor.

20 Before I proceed, I would like to just clarify

21 the record on some of the exhibits that we entered into

22 evidence. That long list of exhibits that I read into the

23 record on Tuesday, in addition to the ones which were
24 excluded from that list, there are a few more that need to
25 be excluded. And they are 42-F as in Frank, 44-C, D and

HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
3062

1 E, Charley, Daniel, Edward; 49-E, F, G, Edward, Frank and

2 George. And 50-E and F. 50 Edward and Frank.

3 In addition to that, your Hon or, I showed

4 Ms. Springer yesterday a number of exhibits that

5 Ms. Springer described as order forms. There are five in

6 which I misstated the letter of the exhibit following the

7 number, and I would like to clarify that.

8 I called one of them 21-B, as in Boy. It is

9 actually 21-C. 25-B is actually 25-C. 27-B is 27-C.

10 16-B is actually 16-C. And 38-B is 38-C, in fact.

11

12 DIRECT EXAMINATION (Cont'd)

13 BY MS. SCOTT:

14 Q Do you recall testifying yesterday about checking

15 people's qualifications before admitted to Sterling Who's

16 Who and Who's Who Worldwide?

17 A Yes.

18 Q Do you remember testifying yesterday you were

19 approximately 22 at the time?

20 A Yes.

21 Q Is that correct?

22 A No, it is not correct.

23 Q How old were you at the time?
24 A 23, going on 24.
25 Q And how much education have you had at that time?

HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
3063
Springer-direct/Scott

1 A I graduated high school.

2 Q Do you recall testifying that Mr. Gordon would have

3 you change titles when the title didn't qualify for

4 memberships?

5 A Yes.

6 Q Can you recall the reason that Mr. Gordon gave you

7 for instructing you to do this?

8 A In the beginning I was instructed that there was

9 going to be -- shall I rephrase it, that there should be

10 business leaders and titles. I guess it distinguishes

11 what a business leader is all about, so you had a cashier,

12 it is not going to look good with presidents, CEO, and

13 CFOs in this Registry. So we would alter the titles in

14 terms of, like I was explaining yesterday, if there was an

15 assistant vice president, they would become an associate

16 vice president.

17 Q Can you describe some of the other types of changes

18 made to people's titles?

19 A Store managers were put down as operations managers,

20 or whatever their expertise would state would be the

21 beginning of their title. If it was operations, for their

22 expertise it would become operations manager.

23 Q Now, can you tell us what -- when these types of
24 people with lesser titles were accepted into the company?
25 A It depended on the membership.

HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
3064
Springer-direct/Scott

1 Q What do you mean by that saying it depended on the

2 membership?

3 A Basically it was a lifetime, if one of the

4 salespeople sold a lifetime membership, and sometimes the

5 price of that was as high as $1,200, the person would be

6 included into the Registry.

7 Q How now, you also mentioned, I belie ve yesterday,

8 that it depended on sales that week; is that correct?

9 A Yes.

10 Q And what did you mean by that?

11 A If the sales were low, and if a person that was at

12 one time not permitted to go into the Registry because of

13 their title, you know, if -- even if it was, let's say, if

14 the person was insistent and say I want it to be listed as

15 manager, and manager only, it would be included into the

16 Registry; when other times if it was say a five-year

17 member, there were times when he would say alter the

18 title.

19 Q What did you mean when you said it depended on the

20 sales that week?

21 A If the sales were low. If the sales were low anyone

22 would be taken.

23 Q Did anyone else instruct you to make these changes?
24 A Yes.
25 Q And who would those people be?

HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTE R
3065
Springer-direct/Scott

1 A Under Mr. Gordon's orders, it would be the group

2 leaders at the time.

3 Q And who did those group leaders include?

4 A There was many. One of them is Tara Green Garboski.

5 One was Frank Martin. There was a lot, quite a few.

6 From Sterling and Rob Lombert, L O M B E R T, I

7 think is the spelling and Mike Esposito, I don't know how

8 to spell his last name, but he was known as Mike Powers.

9 I would a lot of time all them on the phone and tell them

10 about members, with respect to the order forms.

11 Q Can you tell us if you know the name that Rob Lombert

12 used as a salesperson?

13 A Rob lamb.

14 Q Can you tell us specifically what Mr. Gordon said an

15 owner of a company should be called if that owner became a

16 member?

17 A They should be the president.

18 Q What reason did Mr. Gordon give for that?

19 A Anybody can be an owner of anything. So president

20 was more of an upscale title. And that's what he wanted

21 to appear on the Registry.

22 Q And what instructions, if any, did he give you as to

23 what to do, if the customer appeared to be the only
24 employee of their business?
25 A It would become incorporated at the end.

HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
3066
Springer-direct/Scott

1 Q What reason, if any did he give for that?

2 A So it wouldn't look like it was just one person

3 operating the company.

4 Q How often were people who were willing to pay money

5 for memberships actually rejected?

6 A I can't think of anyone who was rejected.

7 I can think of a couple, but --

8 Q The times you saw people being rejected, can you tell

9 us what their occupations were?

10 A It had nothing to do with the occupations. It had to

11 do with the company they worked for.

12 Q What can you tell us about that?

13 A The company was affiliated with a company that he had

14 a previous suit against, or they had had a previous suit

15 against him. The company was Marqui Who's Who. They were

16 a competitor. And at one time, I assume he was going

17 through a CD-ROM, and he came across -- you were able to

18 punch in the name, and it would show you whoever it was

19 that was listed in that company. And I believe the

20 company was Reed Publishing. I am not sure if it was

21 listed as Reed Publishing, but it was a company in New

22 Jersey. But he wanted them and demanded that the orders

23 be pulled. There were probably about eight or nine
24 people. And he had two or three people assigned to it, to
25 figure out why they were let in. And he refunded the

HA RRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
3067
Springer-direct/Scott

1 money. He didn't want them to be in the Registry. He

2 wanted them out.


Wtih more than 12,000 pages of trial transcript of this Most Corrupt Federal Trial of the Century,
the pages have been broken into many smaller pieces.
To continue this fascinating testimony, here is a full version of Feb 5th transcript here


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Crushing The Largest Excecutive Club In History
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