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1 M O R N I N G S E S S I O N
2
3 (The following takes place in the absence of the
4 jury.)
5 THE COURT: Mr. Trabulus, you wanted to speak to
6 me?
7 MR. TRABULUS: Very briefly, your Honor.
8 THE COURT: Mr. Trabulus, before you give me your
9 brief dissertation, I don't like to keep the jury
10 waiting. Have I gotten that impression across?
11 MR. TRABULUS: Yes.
12 THE COURT: There are 18 citizens who are giving
13 up of their time. I don't like to keep them waiting. If
14 you have anything you want to tell me, do it before 9:30.
15 MR. TRABULUS: Your Honor, at --
16 THE COURT: Excuse me.
17 At any time you want to talk to me, I will be
18 glad to talk to you, 9:00, 8:00, 7:00 in the morning, not
19 at 9:30. Go ahead at this time because I am giving you
20 notice.
21 Mr. Neville, be on time.
22 Where is Mr. Neville? Is he here?
23 MR. DUNN: Yes.
24 THE COURT: I guess I didn't make an impression
25 with the other ten-defendant case I told you about.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
244
1 Go ahead.
2 MR. TRABULUS: Your Honor, the government now
3 furnished to me the document on which I based the
4 objection that your Honor ruled on yesterday. That
5 objection is wi thdrawn.
6 Also, I have not had a chance to make multiple
7 copies of it, I will not have multiple copies for the
8 jury. That's all I wanted to say.
9 THE COURT: From now on I will be glad to talk to
10 you at any time. I don't want to tell you 6:00 o'clock in
11 the morning. I can talk to you at that time also. But
12 7:00 o'clock, 8:00 o'clock, 9:00 o'clock, but not 9:30.
13 Bring in the jury, please.
14 Mr. Neville, be on time from now on.
15 MR. NEVILLE: Yes, your Honor. I am sorry.
16 MR. WHITE: Your Honor, I wanted to tell you that
17 we tabbed the portions in the books with respect to
18 exhibits we expect to use today. With the Court's
19 permission, over the weekend we will take it back and have
20 it completely tabbed.
21 THE COURT: Good.
22 MR. WHITE: We aim to please, your Honor.
23 THE COURT: So do I.
24 Where is this book you tabbed?
25 MR. WHITE: I put them on the top of the boxes
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
245
1 there.
2 THE COURT: This one, you mean?
3 MR. WHITE: Yes, the exhibits we expect to use
4 today are here.
5 THE COURT: Very good.
6 MR. WHITE: These are ones, we just added, and
7 that may be referred to today.
8 THE COURT: It would be helpful if you can give
9 copies of the exhibits to the court reporter who could
10 follow better if he had copies of the exhibits. It would
11 help him. I am sure you want to do that.
12 THE CLERK: Jury entering. Please rise.
13 (Whereupon, the jury at this time entered the
14 courtroom.)
15 THE COURT: Good morning members of the punctual,
16 responsible, dedicated jury. Please be seated.
17 Thank you very much. I appreciate it that you
18 all got here on t ime. I had to take something up with the
19 lawyers, or we would have had you in at 9:30 sharp.
20 Where is the witness?
21 MR. WHITE: Right here, your Honor.
22
23
24
25
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
246
1 F R A N K G A G L I A R D I,
2 called as a witness, having been previously
3 duly sworn, was examined and testified as
4 follows:
5
6 THE COURT: You are previously sworn and you are
7 still under oath, Mr. Gagliardi.
8 You may proceed.
9 MR. WHITE: Thank you, your Honor.
10
11 DIRECT EXAMINATION (cont'd)
12 BY MR. WHITE:
13 Q Mr. Gagliardi, when we broke yesterday you told us
14 that you were assigned in 1993 to evaluate an offer in
15 compromise that was submitted by Mr. Gordon to the IRS; is
16 that correct?
17 A That's correct.
18 Q Let me show you Government's Exhibit 420, which I
19 believe you identified yesterday as that offer in
20 compromise; is that correct?
21 A That's correct.
22 MR. WHITE: With the Court's permission, I have
23 copies of this multi-page document to hand out to the jury
24 so they can follow along the testimony.
25 THE COURT: Very well.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
247
Gagliardi-direct/White
1 We always start on this side. Let's get the
2 protocol right.
3 MR. WHITE: This side.
4 THE COURT: Since I am old fashioned, start on
5 this side, start with juror number one and his group, and
6 then juror number seven and his group. Then we get to the
7 two gentlemen in the front. That's the way it is going to
8 be done.
9 MR. WHITE: That's fine, your Honor.
10 THE COURT: All uniform, protocol.
11 Go ahead.
12 (Whereupon, the exhibit/exhibits were published
13 to the jury.)
14 Q Mr. Gagliardi, if you can turn to the attachment of
15 this document, which is marked Exhibit 420-C. Do you have
16 that?
17 A Yes, I do.
18 Q Can you tell us what that is?
19 A It is Form 2848, power of attorney form, for
20 Mr. Bruce Gordon.
21 Q Can you tell us what a power of attorney form is?
22 A A power of attorney allows a representative on behalf
23 of the taxpayer to deal with the Internal Revenue Service,
24 an attorney or accountant or enrolled agent.
25 Q For what taxpayer is this Form 420-C?
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
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Gagliardi-direct/White
1 A Mr. Gordon.
2 Q Can you tell us who it is he is appointing to be his
3 representative in this case?
4 A It says Martin Reffsin.
5 Q And where is that?
6 A Section 2.
7 Q If you can look at page 2 of that document, and the
8 boxes at the bottom, can you tell us what it says there?
9 A It says delegation (sic), insert the letter A to H,
10 and then it says B, certified public accountant, and to
11 show the jurisdiction shown below.
12 Q What is the jurisdiction?
13 A New York.
14 Q Can you read the signature -- is there a signature?
15 A Yes.
16 Q Can you read it?
17 A It appears to be Martin Reffsin, December 17, 1992.
18 Q If you look over to the top page of the document,
19 now.
20 Whose letterhead is it written on, that letter?
21 A M. Reffsin and Company, certified public accountants.
22 Q Could you read the first sentence --
23 A The first sentence?
24 Q Of the body of the letter.
25 A The above referenced taxpayer has been assessed
H ARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
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Gagliardi-direct/White
1 Section 6672 penalties, income tax plus interest and
2 penalties and also promote penalties under Section 6700
3 and 6701.
4 Q Tell us what Section 6672 penalties are?
5 MR. TRABULUS: Objection.
6 THE COURT: What ground?
7 MR. TRABULUS: May we approach?
8 THE COURT: Relevancy?
9 MR. TRABULUS: Yes, and prejudicial grounds.
10 THE COURT: Sustained.
11 This is all before this case?
12 MR. WHITE: What gives rise to the tax liability.
13 THE COURT: We will not get into it in great
14 detail.
15 Move along.
16 Q Could you read aloud to us the second paragraph of
17 the letter?
18 THE COURT: When you read, slow down,
19 Mr. Gagliardi.
20 THE WITNESS: I am sorry.
21 THE COURT: Everybody has a tendency to read
22 faster than they speak. They speak fast enough, when they
23 read they really speed it up, so slow down.
24 THE WITNESS: Yes, your Honor.
25 Taxpayer is presently trying to clean up his life
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
250
Gagliardi-direct/White
1 and move forward. He is 60 years of age and he will never
2 be able to pay substantial sums of taxes, penalties and
3 interest owed to the government. In addition, he is
4 liable for substantial amounts to other parties which he
5 will not be able to pay. We have prepared a projection of
6 income for the next five years, and even if he increases
7 his earnings substantially over the next five years, he
8 won't come close to earning enough to pay all his
9 obligations.
10 Q If you can skip down to the fourth paragraph and read
11 that allowed to us.
12 A In view of the circumstances d iscussed above, and the
13 fact that the taxpayer is over 60 years of age, he wishes
14 to file the attached offer in compromise. He has talked
15 to various relatives, and because of his age and desire to
16 clean up his situation, they have agreed to lend him some
17 money. The offer is presented -- the offer presented is
18 based on the sum of money which he feels he can borrow.
19 He has no other assets.
20 Q And could you read the top of the next page as well?
21 A I, Bruce Gordon, do hereby declare the above to be
22 true and correct to the best of my knowledge. Bruce
23 Gordon signature.
24 Q Now, if you turn to the next page, which is
25 Exhibit 420A, can you tell us what that form is?
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
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Gagliardi-direct/White
1 A Form 656, offer in compromise, and it says Bruce
2 Gordon, 10 Bl uff Road, Glen Cove, New York, 11542.
3 Q Tell us in summary what is offered with respect to
4 this document?
5 A In summary he offered $150,000 to compromise the
6 total tax liability.
7 Q And on this form is there a signature line for the
8 taxpayer?
9 A Yes, there is.
10 Q And where is that?
11 A On the bottom right.
12 Q Is it signed and dated?
13 A Yes, it is.
14 Q What is the date?
15 A August 9, 1993.
16 Q Can you read what it says above the taxpayer
17 signature.
18 A It says: Under penalties of perjury, I declare that
19 I have examined this offer, including accompanying
20 schedules and statements, and to the best of my knowledge
21 and belief, it is true, correct and complete.
22 Q If you take a look at 420-D, and it is a few pages
23 beyond that?
24 A D as in David?
25 Q Yes.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
252
Gagliardi-direct/White
1 A Okay.
2 Q Now, what is that, 420-D?
3 A Form 433-A, collection and information statement for
4 individuals.
5 Q What does it say in box one?
6 A Bruce Gordon, 10 Bluff Road, Glen Cove, New York,
7 11768.
8 Q Look at box five, what does it say?
9 A Taxpayers employer, business name and address.
10 Q What is listed?
11 A Who's Who Worldwide Registry, Inc., 1983 Marcus
12 Avenue, Lake Success, New York, 11042.
13 Q In box F, what are the choices the box can check?
14 A As wage earner, sole proprietor or partner.
15 Q And what is checked?
16 A Wage earner.
17 Q And at the bottom of the page in box 12(b), what does
18 that ask for?
19 A Adjusted gross income.
20 Q What is listed by Mr. Gordon?
21 A 51,876 for the year 1991.
22 Q If you turn to the next page, question 14 at the top,
23 what does that ask for?
24 A Bank charge cards, credit unions, savings and loans,
25 I am sorry if I am going too fast, and lines of credit.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
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Gagliardi-direct/White
1 Q Is there an American Express Gold Card listed there?
2 A No, there is not.
3 Q What is listed there?
4 A The word "none" is written there.
5 Q Look down at question 18. What kind of information
6 is in that box?
7 A Securities, stocks, bonds, mutual funds, money market
8 funds, government securities, etcetera.
9 Q Now, are there any shares of Who's Who Worldwide
10 Registry listed there?
11 A No.
12 Q Any shares of any company listed there?
13 A No.
14 Q What is listed there?
15 A It says none.
16 Q Turn to the next page, page 3, where it says assets
17 and liability analysis, do you see that?
18 A Yes.
19 Q Can you tell us what assets Mr. Gordon lists?
20 A $500 in cash.
21 Q Any other assets?
22 A None.
23 Q Look at box number 28, where it says other
24 liabilities, including judgments, notes and other charge
25 accounts, any liabilities listed?
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
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Gagliardi-direct/White
1 A Yes, there are.
2 Q Among the ones listed, are any loans to Mr. Gordon
3 from Who's Who Worldwide Registry or any other companies,
4 or loans listed?
5 A No, it doesn't appear to be.
6 Q Turn to the next page, page 4, where it says monthly
7 income and expense analysis, does Mr. Gordon list his
8 monthly expenses?
9 A Yes, he does.
10 Q Tell us what he lists?
11 A He lists rent of $2,000, utilities of $250,
12 transportation, 150, insurance 50 for home. Court ordered
13 payments, it says not able to pay. And $70 in other
14 expenses.
15 Q At the bottom, can you read the box that says
16 certification -- I am sorry, in the middle, the box that
17 says certification.
18 A It says: Under penalties of perjury, I declare that
19 to the best of my knowledge and belief this statement of
20 assets, liabilities and other information is true, correct
21 and complete.
22 Q What is the date of the signature there?
23 A July 8th, '93.
24 Q If you can turn to the next page of the document,
25 420-E.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
255
Gagliardi-direct/White
1 Can you tell us what that is?
2 A It is a five-year projection of income -- actual,
3 actual expenses and income, 1991 through 1996.
4 Q Now, can you tell us what it says Mr. Gordon's annual
5 salary was in '91 and '92?
6 A On the very top left, $50,000 in actual annual salary
7 in 1991 and '92.
8 Q What does it project his annual salary would be in
9 the following years?
10 A 1993, 100,000; 1994, 125 -- 125,000. 1993, 100,000,
11 1994, 125,000, 1995, 150,000, 1976, 175,000.
12 Q If you can look down at the column on the far left
13 side, does it list Mr. Gordon's expenses and debts for
14 those years also?
15 A Yes, it did.
16 Q Can you list what expenses and other debts he has.
17 A It lists rent. Do you want the amounts?
18 Q No, just categories.
19 A Rent, groceries, electric and gas, telephone,
20 insurance, which is broken into home, life,
21 hospitalization and other; travel expense, gas and
22 maintenance; other expenses, cleaning, taxes, in
23 parenthesis, withholding; payments to wife by court order;
24 outstanding judgments, required payments pursuant to
25 agreement with Justice Department.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
256
Gagliardi-direct/White
1 Q Is there a net cash flow listed for Mr. Gordon?
2 A Yes, there is.
3 Q Can you tell us what is a net cash flow?
4 A A net cash flow for purposes of statement like this
5 indicates how much a taxpayer has after paying all of his
6 expenses.
7 Q Tell us what is listed there for 1991?
8 A It shows that Mr. Gordon had a net deficit of 11,356.
9 Q What does it mean that he had a net deficit?
10 A Paying out more than he earned. I am sorry, 366.
11 Q What is the annual cash flow or deficit projected for
12 1992.
13 A It shows deficit of 15,864.
14 Q And tell us what is projected for the years '93
15 through '96?
16 THE COURT: What is the difference? Why is that
17 important?
18 MR. WHITE: Okay.
19 THE COURT: Let's move along, Mr. White.
20 Q Take a look at the same document, 420-E, does it
21 indicate on the schedule that Mr. Gordon is required to
22 repay loans from Who's Who Worldwide?
23 A No, it is not listed.
24 Q Does it indicate anywhere that any of his expenses
25 are being paid by Who's Who Worldwide?
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER
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Gagliardi-direct/White
1 A No.
2 Q Now, if you could turn to 420-H -- I am sorry, 420-G,
3 like in George.
4 Do you have it now?
5 A Yes, I do.
6 Q Tell us what that is?
7 A It is on a Who's Who Worldwide stationery, and it is
8 compensation agreement between Bruce Gordon and the
9 shareholders of Who's Who Worldwide Registry, Inc.
Projections? 1991 taxes? Compensation? Gordon? Shareholders?
WHAT DOES THIS HAVE TO DO WITH THE SALES DEFENDANTS?
To continue this,
here is a full version of the Jan 15th transcript
here is a full version of the Jan 15th transcript
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Censored
Corrupt1
Cross-Benjamin
Direction
ALL of these Directors Dunn-Cross-Springer Enter Win_listrel Jury List Page2 Page3 Politics Top Members Tribute 911day2 Tribute9a Tribute9r Watstein - Million dollar con artist More comment  This site is concerned with this disgusting example of jurisprudence gone bad, The Tragic Crushing of Who's Who Worldwide Registry
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