Transcript Day 2

8/3/2019 Transcript Day 2

1/50

21 ErG) !!H JUOIC.[STRICT C O U R T I G R A [ ) JURO.&SEm O ~ t i O V I .I B ER 15, 2 0 1 1 272 C LA R K C OU N T Y , N EV A D A 23 3 E'LORNA l W { S E I ' , Forepmon r~';E , l u (i '1) I ! ; m4 B EF OR E Y H E G R A N O J U R Y IH FA H EL ED B Y T H E : A F OR ES A ID 4 C A RO L D E G UW l, ! ) , ; : p u t y F o r e p e o n 0 n de b r . { tr - JS D IS T RIC T C O \1 1\ 1 5 KIWJlLEEl! B R O N S O N , S ~ ;r et a ry6 O R I G I N A L 6 I l~ R A II H E B R U M A G I 1 I, A 5 5 iS U $ ~ seleta;u7 'f HE S T AT t: o r N E V A D A , 7 D O IlA L D B A IL E Y , (O ld not e r te, : v l a t f l f : 4 ~ ' J I ! ; ' J~ Plaintiff, s D A N IL L C OO K9 No, W , G J 0 3 7 1 \ 1 1 9 D E N N I S D U lIN ~ .s, - ,J i10 G A R Y 't R A Fr oR D , G E R R I S H E P P A R D , c 9 J l1f) J3 l~ R IC HA R D F A R - t o . , _ , /J. tc.~Vl-~11 Defendan ts . 11 L A I !R E ! :C E F L L D I '. A l! e L E H K O L rl{~:C O U R T12 12 r E l U l A N O O G A R C I A13 13 B Y R on G E O R G E14 Taken a t L as V eg~s, N evada 14 H A R r O G a { EZ15 tuesday , llovem er 15, 2011 15 C H R IS TO P H E R H A LL EH16 8:44 a.n , 1 6 R O S A K F .R G Y11 11 L A R RY S E IB E R 118 18 M A R G A R E7 E S O RR IC K1 9 , 1 9 R O B8 R ? W IS E M A N2 0 R E P O R I'E R 'S T R A N SC R I P T O F P RO C ~E D IU G S 2021 2 1 1 I1 so p re se nt at t h e r e q u e s t o f th e Gran d J u r y :2 2 V O LU M E 2 22 Jo hn K elleh er, R obe rt G i u n t a ,2 3 23 San K ern f H el en e L es te r,D ep u t y A to r n e y General2 4 242 5 Reported by : n a n e t t e 1 . A n to n a c c l , C .C .R . N o . 2 2 2 25

3 4I H lD EX O F Hml~SSES 1 W D E X o r E X H I S I I S2 ~ 23 3 G ra nd Ju r: t Ex hibit s I d e n t i f i e d4 rO D D G R O SZ 6 4 1 ~ P R O PO S8 D I N D rW I E l l f 12 45 D E B R A H A ' i'K I N S 1 2 5 is - C A L - W E S T E R N R E C O O V E n N C E C O R P O O C V M E I H S 346 J r .m H rE R B LO E C K E R 2 2 6 1 9 - Q U A L I T Y L OM l S E RV IC ES C OR P ! lC (; I J M E N TS 3 67 T R A C Y L l I I l R E N C & 5 4 7 2 0 - 3 / \R eM r R U S l . o s L A N O ~ . M B R l C A D E r A U L ' l S E R V I C E S , 4 0a A S S ~ ' l ' F O R E e U R E S E RV IC ES I N C , 1 l0 'J S E KE YJO S E PH l iO E L 7] S rH W iC IA L C O R P D O CI D IE N 1 S9 J O H N S H A F fE R 81 9 2 2 - C H I C A G O D E f A U L T S ER V I C ES D O CU M EN T S 551 0 T A M lI E h l l E R RY 9 0 10 2 3 - A G RE E l l E lt l T O C O O PE RA T& -7 A A C Y L A J o IR EN C E 6811 11 2 4 - i '. G R E EM E N T '1 0 C O O P tM T S-H eG !lA N B LO EC K E R S HA W 6912 12 25 - A G R E EM E N T t o C O O P ER A 1E -J E l. : lH F E R S W EC K ER 4 SL O W E13 13 2 6 - A G RE I . IB N T T O C oo Pl : R A T E - JO S E PH 1 l( )& L 691 4 14 21 - U )A ll O O C U !{ W i'S F RO M C H IC A GO lI ' lL E 8 315 15L 6 1617 1 719 ( C-11-217673-1 I IS19 : T R A N I 19' R e po rt srs T ra n sc rip t20 j i j l j i l i i l i l l l l ~ 1 1 1 I I ~ 1 1 1 I 1 1 I " " 1 1 1 1 2 021 I 2l r-2 2 J n23 232 4 2 42 5 25

,n(,V


2/50

.'.L AS V EGA S, lIEV A.OV EM BEP. 15, 2011

23~56

I-ttt'ti

DA lI ET 7E L . AN IO lI ACC I,na v in g be en f irs t d uly sso rn t o f ai th fu ll ya nd a ccu ra te ly tra ns cribe th e fo llo win g

1 proceedings to th e bes t o f h e r a bi li ty .~9 THE F OREPER SO tI: L et th e re co rd reflect10 th a t I ha ve ca nv as se d th e waiting area and no o ne ha s11 appeared in re s po ns e to N otice o f In ten t to Seel :1 2 In dicm e nt.13 MR , G IUN t'A : G o o d ! CO m i n g . My n a n e is14 Ro bert G iu nta fro ll th e A tto rn ey Ge ne ra l 's O ff ice a nd 1 ' 1 1 115 he re w ith Hr. K elle h er, H r. K ern a nd Hele n e L es te r.16 Thh is a continuation o f Case l lu.-cber l IAG J0 3 1AB , A n d17 ou r nex t witn e ss is go ing to be a recal l , W e're go ingIB to re ca li Todd crcsa . l ie te stif ie d la st week.1920 h a n d .2 1

~HE roREPERSO lI : P le as e ra is e yo u r r i gh t

Yo u do s o l emn l y ss s a r th e t e s t i nony yo u al e2 2 abou t to g iv e u p o n th e invest iga t ion n o w p en d in g b ef ore23 this G ra nd JUry sh all be th e tru th , the whole tru th , an d24 t IOth ing bu t th e tru th , so h a lp y ou God?2 5 THE HI'IN ESS: I do .

?1 A , Yes . 12 Q. -- o f dccusen ts ov er a t th e C la r~ C o u nt y 23 Recorder '5 Office, 34 A. tha t is correct, 45 Q . During th e C ou rs e of tha t ex aa iea t io n y ou 56 s p o ke w it h nunerous ind iv idu als ; is tha t correct? 61 A , Yes, tha t is correct, 7a Q. A n d t he p urp ose o f th at l i a s? B9 A , T he p u rp o se lia s just s in ply to a sce rta in 91 0 i n f oma t ion an d e vid en ce s urro un din g th e activ itie s th at 1 011 t oo l place in th e p toces s o f al l o f tM se docuxen t s . 1112 Q . Is it sa fe to sa y th a t y o u assess th e 12D p ro ba tiv e v al ue o f th e t e s t i nooy as it re la te d to th is 1314 case? 1 4I S A . Ye s, th at is co rre ct, $05 !Q O f th e 151 6 I nt o ra e tt o n \l 3S 0' t re l ev en t e nd S01,e certainly was . 1 617 Q. A nd as th e in v es tig a to r in th is case, \ las 17is it you r jo b o r we re y o u a sk e d to a rra ng e fo r s ev e ra l o f Ie19 th es e ind iv id ua ls to te s tify o r a p pe ar in f ro n t o f th e 192 Q Gr a nd Jury? 2021 A. Yes , it w as m y re$p()nsibi li t~, 2 122 Q , D id y ou in fact a rra ng e fo r th e s e 2223 indi vi dua l s1 n24 II, Yes , I did. 2 4-2 S Q . Okay . C a n yo u g iv e u s th e l i s t o f 2 5

5

25 In ve stiqa tIo n in to th e ro bo -s ig nin g --

_ E E 'OREPERSON:le as e be s ea te d.2 Yo u a re a d v i s e d th a t y ou a re h ere t o d a y to3 g i ve te stk -o ny in th e in vss ti9 atio n p -e rta in in 9 to th e4 o ffe n s es o f n ota riza tio n o f s ig n atu re o f p ers o n n ot inS p re sen ce o f n ota ry p ublic, o ffe ri!l9 fa ls e Ins trusen t fo r6 f ilin g o r re co rd in g, a nd f als e ce rtif ica tio n o n certain7 instrucent, in v olv in g G ary T ra ffo rd a nd G erri Sheppa rd .a9W

D o y o u u n de rs ta n d t his adv i seLlen t?tHE l i IT t i ~SS: Yes, I d o ,' [l iE roREPERSOlI ; Ple as e s ta te y ou r f irs t

11 a nd la st nane an d sp e ll bo th fo r th e re co rd .12 7M E H llN E S S : T o d d G ro s z , 1-0-ll-D,13 G-R-O-S-Z.1 4 \ 'H & r o R E P f.R S O N : T h an k ~ 'O u ,1516

P I eas e proceed ,T O D D G RO S Z ,

11 h av in g be en first d uly s wo rn by th e F ore pe rs on o f th e18 Grand Jury to te s tify to th e t ruth , th e whole truth,19 an d n oth ing bu t th e tru th , te s tifie d as fo 110 :(5 :2 02 1222 3 B Y M R . GWlITA:

~XN1J lIA ' l ' ION

2 4 Q , To dd , yo u te s tif ied la s t w e ek abou t y o u r

Ind iv id ua ls th at yo u e ith e r, th at you 'v e a rra ng ed tohave testi fy ill fron t o f th e Gra nd Ju ry ?

1\ , I spoke lIith Heghan Shaw, J enni f e rBloecker , !racy L awre nce , D ebra Watk i n s , Jo se ph N oe l. 1t hin k t ha t's a ccnplete list.

Q . O kay, A n d is it sa f e to s a y th at th eseind iv idua l s were e ith er n ota rie s o r s ig ne tS on th enotice o f d efa u lt d ocu nen ts th at lie s uba ttte d in toev idence?

A . Y es , th ey e re ,Q. Ok ay . In th e cou rse o f y ou r d is cu ss io ns

with th es e in div idu als , d id y ou d iscu ss o r d id yo ue xp la in p ote n tia l crin ln a l ch a rg e s th at th ey n ig ht besub] ected to ?

A . Ye3 , I did .Q , Can yo u t e l l u s wha t y ou to ld th e n ota rie s

a nd g uy s th at s ig ne d?11. I ~ )( pla in ed to t he . .. based o n th eIn fo rza t fon th at th ey v olu nta rily p ro vid ed th at t hey ha dp o s si bl y v io la te d th a l aw , ra ng in g fron fo rg ery to f a l sece rtif ica tio n o f d ocu ne nts , n ota rizin g d ocu se nts w ith ou tth e sub jec t be in9 presen t , A nd I be l i eve t h a t t i ou ldhave been it.

Q, Okay. A nd d id y ou d is cu ss tlith t hea th ep os sibIlity o f re du cin g th os e charges in e x ch an g e fo r


3/50

10

:.

1 p re s e n tin g te s tl l" ..m y in t t t . r th e G ra n d Ju ry ?2345

A . Yes , I d id .lind w a s t ha t done do y ou k nQ II?Y e s , it l ia s .0() yo u kno l l th e reason be h in d g iv in g th e

Q .A .Q.

6 ind iv idua l s a re du ce d c ha rg e?7 A . W e ll, th e se in d iv id ua ls were le s s cu lp ablea th e n th e p r m a ry su bjects . Th e se in d iv id u a ls we re9 s il !ip ly fo l lowing o rd e rs th ~ t th ey we re given th ro u g h th e10 course o f their enp loyxen t . They W Ue ju s t d o in g wha t

11 th e y we re to ld to d o by th eir e np lo ye r,12 Q . To yo u r knowledge were any o f th e13 in d iv id u a ls in a su p erv iso ry ca p a city ?14 h. 1 I0ne o f th en lie re , n o.15 Q. Okay . D o y ou k no :; t he s pe ci fi cs o f an y of16 th e e qree a en ta to co o p e ra te th a t th e ind iv idua l s Wi!re11 g iv e n ?18 A . ~ h ey are p le ad ing or h av e p le d gu i l ty to19 on e nisdeaaanor or OM g ro s s I'l is de :te an or c ou nt in20 e x ch a n g e fo r th e ir testtnony t o d a y . Rec~l : fI1endat ion w a s21 be in g f !ade t ha t t h ey were s in p 1y to be q iv e n p ro ba tt cn22 as oppo sed to ' any ja il tine ,23 Q. A nd a ga in th e re ason why we, wh y th e Sta te24 ctte rsd a reduced ch arg e to t he i nd iv id ua ls wa s why?25 A . liell, the purpose is to g at he r a dd it io na l

' mE f OR P ER SW : Tha nk yo u fo r y ou r2 te s tin o n y , You a re e x cu se d .3 HR. K ERN : Sta te carl s Debra i1a tk ins .45 h a n d .6 Yo u do $o le~Jl ly swear th e t ss t l ncny y ou ar e7 abo u t to g iv e upon th e in v es tig a tio n n ow pen d in g be fo reS t h is Grand Jury sh a l l be th e t ru th , th e lih ole tru th , a nd9 noth ing bu t t he t ru th , so h e lp y o u God ?

1H e ~O ru :p t R SON : Plea se ra is e you r r iqht

ie11

T H E IHHlESS: Yes , 1 do .T HE fO RE FE RS ON : P le as e be s ea te d,

12 You a re ad v is ed th a t y o u are h ere to d ay to13 g iv e test i t cny in th e investigation per ta in ing to th e14 o f f e n s e s of no ta r iza t ion o f s igna tu re o f p erson n o t in15 p re s e n ce o f n o ta ry public, offering f~ ls e In s tru ae n t fo r16 fi l ing o r reco rd ing , fa ls e ce rtif ica tio n o n certain1 7 In st ru za at , invo lv ing Ga ry T ra f fo rd an d Gerri Sh e p p a r d .IS19

D o y ou u nd ers tan d th is a dv is eu en ttT HE I'IIT !!E SS : Y es .

20 T H E FORE?ERSON:P le as e s ta te y ou r f irs t21 an d la s t n a n e an d sp e ll bo th fo r th e re co rd .22 TH E IiI'ltIESS: D e bra l'1 atH ns . D -E -B -R -A ,23 N-A-T-K-l-li-S.2 425

T H E fO RE P E R S O U : 7 ha n k y ou .Plea se p r o ce e d .

1 i n fomauon .e t emine who tru ly wa s a t f au l t here ,2 who w a s t i l e on e th a t s e t t h es e whe e ls in not ion s o to3 speak . If I ca n !ta ke a n a na lo gy . Itwou l d he lik a a4 drug case, ge t t ing a s tree t d e a le r to su p p ly the naae of56

hi s o r h er supp l i e r .Q. Ohy. So t h is is -- okay . All r i9h t .

1 Th a t's f ine, Thank y ou very such .a I do n It h a v e an y fu r the r ques t io n s of t h is9 wi tne s s .10 T H E fO R E P ER SO ll! JUrors , do yo u n a v e a n y11 ques t io n s?12 By l aw, t h e s e p roceed ing s ar e secre t an d13 yo u are p ro hib ite d Iro n d isclo s in g to a n yo n e a n y th i ng14 t h a t h as tra ns pire d be fo re u s, including ev idence an dis . stateeenta p res e n te d to th e Gran d Jury , an y e ve nt1 6 occurr ing or s t a t enen t D l < > d e i n th e pr e sence o f th e G ran d17 Ju ry , an d In to rs a t icn obta in ed by th e Gr an d J ur y .18 fa ilu re to co~ p ly with th is ad acn it lo n is a19 gross m i s d em ean o r pun ishab le by a year in th e Clark2 0 C Ou nty D ete ntio n Cen t er a n d a $2,000 f ine . In add i t io n ,21 yo u na y be h e ld in co n te np t o f cour t pun i shab le by an22 add i t iona l $500 f ine an d 25 d ay s in th e C la rk Coun ty2 32 4

Deten t io n Cente r .D o y ou u nd ers ta nd th is ad no nitio n?~H~ !lI1N ESS: Yes , I d o,5

11 12

1 D E B M l IA1KIHS,2 hav ing be e n f irs t d u ly s l iorn by th e F ore pe rs on o f th e3 G ra nd Ju ry to t e s t i fy to th e tru th , th e wh ole tru th ,4 and noth ing bu t th~ tru th , t e s t iie d as fo l lo l l s :56 EXA . ' 1 l t l A ' f I O l l78 BY M R. KE ru h9 Q. Good morn ing H is s W a tk in s.10 A . H i .11 Q . ~ 'he re d o y ou liv e?1 2 A . L as Vegas .1 3 Q . A n d ar e Y < l U e n p l o y e d ?14 A . Ye s .15 Q. HOll a re y ou e :tp 1o ye d?16 A . ] 'm a te ap era ry , o n a te:cpOIBry a s a iq n n a n t17 t h rough W orkN ay Sta f fin g fo r F irs t AIl er ican 1itle.18 Q . Hall l o ng h a v e y o u vorkad t h e re?19 A . Al lEo s t f iv e e on th s.2 0 Q. A nd what d id d o yo u be fo re th a t?21 A . I l ias o n la y o f f an d p rio r to th a t 1 worked22 a t L PS Defau l t Title a n d Clo s ing .23 Q . l l hen d id you work there '!24 A . Frao, I h ired in as a te n p o n Dece~b e r 11 th2 5 o f 2007 , th e y h ired n e fu l l til te Se pte re ber 1 8th o f 20 08 ,


4/50

13 14a nd I g o t la id o ff h'OVenbe.h o f 2 01 0. 1 A ,2 Q . W h at w as y ou r jo b p os itio n wh ile y ou t:e re 2 Q. h'ere y o u s up erv is ed by an yo ne a t L PS?3 the re? 3 A . lIo . M y s up erv is or w as in ca lifo rn ia .

4 A . M y t itle w as s ea rch er. 4 Q . f lb o w a s y o u r s u p er vis o r?5 Q . A nd w ha t d o e s a tit le s e a rch e r d o ? 5 Fl . W hen I f irs t s ta rte d o u t it wa s llil ly6 A. A title s ea rch er g oe s th ro ugh th e v ario us ~ F e r n a nde z , th e n h e le f t to go to a d if fe re n t po s itio n ,1 p rcqra n s lie h a d av aila ble to do p ublic s ea rch an d ru n J a nd t he l as t s ix l '.: {)n th sp ro ba bl y it wa s B a r ba raa ch ain o f tit le . S l1or thrup .9 Q. KO N d id y ou CO t e to be e l 'lp lo ye d a t L PS? 9 Q . h 'h ere w ere th es e o ff ice s lo ca te d?10 A. ] h a d ha d re su zes po s te d o n d iffe re n t web 10 A. I rv in e , C a li fo rn ia .11 Site s , an d th ro uqh Ca ree r B uild er a n o rg an iza tio n o ut o f 11 Q . W h e re w e re y o u a ctu a ll y I{o rk in g ?12 C al if orn ia c all ed L .WI , I -I h ic h i s L o a n i \d , r: ti n ls t ra t io n 12 A . 50 0 N orth Ra in bo wh ere in L as V eg as .n lIe tl{o rk tn c., ca lled a e o ne d ay an d as ked lr.e if I wa s 13 Q . A nd in th a t o f f ice v e re y ou su perv is e d by14 av a ila ble a n d I s a id y es a nd th ey s e n t n y re su n e ov er to 14 a nyb ody?15 F id e lity a nd I s ta rte d th a t n e x t M ond ay . 15 A. N o .1 6 Q . N ho a ctu ally h ire d y ou ? 16 Q . D id an ybod y tra in yo u in y ou r job?17 A. I wo rk ed fo r L AN [. The s ta f f in g ag e ncy 11 A. Yes .IS a ct ua ll y w as Il ly e zp lo y er , 18 Q . W h o tra in ed y ou ?19 Q. D id y ou -- 19 A . 7h e pe rso n th a t d id th e sa n e jo b tit le ,2 0 A. L P g w as a cl ie nt . 20 s ea rch er, th at wo uld h av e be en Je ss ie B ewley .21 Q. I'n s o rry . W henyo u 're ta lk in g 1 '11 wa it 21 Q. D id h e tra in y ou how to h e a s e a rch e r?2 2 u ntil y o u're do ne an d th e n wh en I ask th e qu es tio n if 22 A . N o , I a lrea d y k n ew how to be a s e a rch e r s o2 3 yo u co uld wa it u ntil th e qu es tio n is fin ish ed . ' (ha t 2 3 n o a ct ua ll y .24 ju st h elp s to !'"a ke t he re co rd cle ar. 2 4 Q. ~ 'h a t d id h e tra in yo u in 125 D id y ou in te rv ie w with an ybo dy a t L PS? 25 A . Ju st L PS 's w ay o f d oin g s ea rch es . Il h ic h i s

15 161 ba s ica lly a ch a in o f tit le s e a rch is p re tty zuch th e 1 Q. . And what fo r 11. ' 8C1 '12 sa n e a t an y tit le co ltp a n y. 2 A . I r:o u ld do a lo t o f . h er be n e che ck s .3 Q. D i d y o u e v er a ct a s s OIile bo d yW h Q\fO u1 d fil l 3 50M tin es , y e s , it wo u ld be d o cu asn ts th a t n ee d e d to be4 in (o r o th er e p? lo },e es ? 4 s ig n ed . no tice s o f sa le o r no tice o f d efa u lt. S h e w o u ld5 A . Ye s , I w as th e o ffice flo a te r s o I co u ld 5 h an dle th e tru ste es d ee ds .6 co ve r Tra cy 's d esk , Je s s ie 's d e sk a nd Jo ey '~ d esk . 6 Q. A nd d id y ou s ig n th os e d ocu ne nts ?1 Q. D id th o s e ind iv id u a ls te ll y o u wh a t to do 7 A . Yes , I d id s ig n so r.e d ocu ne n ts a sa v he n y ou "'e re co ve rin g th os e p os itio ns ? a a uth orize d $ig na to ry , y es .9 A . F ro n Jo e y a nd tro a Tracy , y ea h , I h a d wh a t 9 Q. I!e re y o u e ve r a ut ho rize d by a ny bo dy to s ig n10 I wou ld ca ll te n n in u te cra s h co u rs e , it w as n o t in an y 1 0 t ho s e d o cu e nt s?11 re al d et ail , [u s t d o th is a nd th is . 11 A . lIo , ju s t a s o ff ice f lo a te r to cov er th e ir12 Q. H o w o f ten wo u ld yo u f il l in fo r th o s e 12 pos i t i ons .13 p e op le? 13 Q. So is it fa ir to s ay th a t 1 ;h e n y ou lIera14 A . I wo uld co ve r wh en th ey we re o n va ca tio n o r 14 co ve rin g s oo ebo dy 's d es k th ey I;o uld te U y ou th at th at1 5 o u t s ick fo r 8 d a y . 15 w as (lilrt o f y our jo b?16 Q. IIh en y ou were f il lin g in fo r th es e 1 6 A . Yes .11 in div id ua ls w ha t d utie s lIo uld y ou p erfo rn j 1 7 Q. B ut a ga in y ou w ere n't allare o f a ny s pe clf ic16 A . On Jessie ' s n e sk w as ba Sica lly th e s alte , IB a u th oriza tio n to s iqn tho se d ocu ne n ts o n beh alf o f an y1 9 h is tit le w as th e salle as m in e 50 it Hou ld be th e ben e 19 o th er co ap an y, w ere y ou ?2 0 checks , B,E-N-E ch eck s, ben eficia rie s ch eck s is wh at it 20 A. 1 1 0 .21 s tan d s fo r. 1 vo u ld do s ea rch ing bas ica lly o n Jo e y 's 21 Q. A nd w ith reg ard to th e n otices o f d e fa u lt ,22 d esk . Th ere wou ld be s a n e docunen ta th a t n ee d to be 22 a re y ou a wa re o f an y a ge ncy re la tio ns hip be twe en 1P S a n d23 s en t to th e reco rd er's o f f ice . His en d o f th e d ea 1 n 'a s 23 those othe r conpanias?2 4 NO D s, no t ic e a n d d e fa u l t. A n d t ra cy w as m o re 'IS G >l hic h 2~ A . 1 k n ew --25 is tru stee s ale g uara nte e. 25 O . L et !:e re ph ra se th e qu es tio n.

-,~


5/50

19

12

Wi t h r eq a rd tl n otice o f d efau lt , lIerey ou awara o f the agen cy re la tio nsh ip be tween L F S an d th e

17

A . Hin e ty -n in e pe rcen t o f the a I sou ld sayw ou ld be by Jo ey .

Q . lin d --A , Because Tracy wou ld be o u t.Q . Okay , By Jo ey y ou ae an Jo se ph Noel?A . Jo sep h N o el , y es .Q . D id yu ev er se e 0 r s 19 n a no ta ry log o r

journal?A . N o. Th e n ly titt:e I ev er saw Tracy with a

jo u rn a l is wh en s oueo ne e lse , we h ad m any o ffice s inth at p articu la r bu ild ing , when an a tto rney or sceeo newou ld COM to he r and ask h e r to n o ta rize so :te th in g Iw o ul d s ee he r ta ke a boo k and go no ta rize .

Q . Ol:ay . A ga in tha t's n o t so ne th ln q you ev erfilled o u t y o urs el f?

A . 110.Q. D id yo u eve r see a bu s in es s licen se whiley o u w ere the r e?h. I d on 't recall seeing OM on th e wall.

M R. K ERN : 7 he Sta te n as no fu rth er

3 cospames tha t yo u we re s iq n in q as an agen t for?4 11 . I just k new tha t they w~re th eir ven do rs5 a nd th eir clien ts .578 l Ioe l .9

Q.A .

W h o no ta rize d t he docunen t s?WhenT r a c y w as o ut it .'Culd be Jo ey , Jo se ph

Q . And C o n y ou d es crl lx ! th e o rd er in IIl li eh10 t h e se docusents we re n o t a ri ze d ?11 A . Wh e nT r ac y w o u ld 1 w o ut soaettnas there12 would be a large vo lu ne o f do cu aen ts and Jo ey wou ld13 M tarh e tho s e docunen ts and then as th e o rd e rs cane in14 1 l Iou ld s ig n th em .15 Q . O~ ay . A nd x ere yo u s ig n ing th en in yo u rHi n an e o r s os ebo dy e ls e's 111 A. My neae .18 O. Can y o u g ive an e s tin a te o f a typ ical d ay ,19 the nusber o f d ocu ne nts th at y o u I ,o u ld s ee C Ol lin g20 th ro uqh a particular d esk wh ere the o ffice s are?21 A . W hen] firs t s ta rted th ere wou ld22 ap pro x im ate ly be at lea s t 200 a d ay . It was a la rge23 voluae.24 Q , lias th at p re tty con sis ten t th rou gho ut yo ur25 tine there?

19

1 a re a l a ticbler o n ho~ d ecu zen ts are record ed . Y o u h a d 12 to nak e su re th e re was n o writinq in ce rta in space s 23 w here sa y th ey lo 'O uld pu t th eir s t~ p, Y o u ju s t have to 34 rev iew th e do cun en t fo r cla ri ty . 45 Q. A nd is it fa ir to say th a t in th e in s tance s 56 in wh ich yo u were n ot able to rev iew th e d ccu zen ts , it 61 W as aostl.y th e v o lum e and til lin g o f t h o s e docueen t s ?8 co :n ln g to y ou th at mde i t i El po s s ib le ? a9 A . res. S10 Q . W ith rega rd to the d o cu een ts th a t were io11 n ota rize d be fo re th ey w ere sig ne d, "'Q uld th os e d ocu ne nts 1112 soce t i t : e s be n ota ri aed th e d al ' be fo re they were ~ i9n ed? 1213 A , Tha t ' 5 p oss ible , y es . 1314 Q. Is it p oss ible o r d id it occur? H15 A. It d i d , 1 51 6 Q. Okay . 1 611 A , I'd hav e a s tack o f n o ta rized do cwr.en ts an d 11IS I'd tak e a s n u ch a s I need ed th a t d ay fO( th a t s ta ck an d IS19 ye s , I'd h av e S01e le ft o ve r an d they wou ld p robably be 192 0 used th e n ex t d ay . 2 021 Q . Is th at so ae th in q tha t h ap pen ed fa irly 212 2 t requent l? z z23 A . Yes . 2324 Q . A nd th ose are d ccu aen ts th at ticre n ota rize d 2~25 by w ho ? 2 5

12

A. ... It did s lo w d ow n tosards the end oflas t ye a r, I'd s ay fro m Ju ne o n th ro ug h tlo ve ~be r it

3 slc-.ed d o wn s oc 8w ha t, b ut it wa s still a hig.h voluae of4 docuzen t s .5 Q. W ere yo u able to rev iew all o f the6 d ocUiten ts th at yo u s ig ned ?1 A . If th e y co ne in ea rly en o ug h d uring theB d ay , ye s , yo u cou ld have ttze to re vie w then. I ' / e ' d have9 a run ner go to the cou rth ouse a t ce rta in tin es and th o se10 d ocu nen ts had to be s ig ned and read y to g o . So say it11 wa s 1 dO th e co urth ouse , th e run ne r l'o'Ouldgo ove r at12 2 0'clock, sa y y o u w ere still g et tl ng d cc ui !e nt s in at13 1:30 which w a s al l th e cl ients knew th at was p re tty Iluch14 the cu to ff tiRe , SOl:e tiB :e s t hey 'd hit yo u with 60 a t th e15 la s t few m in u tes an d th ey 'd h av e to be s i9 ned and read y16 to go b y 2 0' cl


6/50

22

1 th a t h a s tran sp ired !J.e fo re 'in ClU din g e vid en ce an d2 stateaents pr e sen ted to th e Grand Ju ry , any e v e n t3 occurr ing or staterent n a d e in th e p re s e n ce o f th e Grand4 Jury , and in fo rm atio n obta in ed by th e Grano Jury .5 Fa i lu re to co~ ply w ith th is adJ1lonit ion is a6 qross l II is d e r le a n o r p u n i s ha b le ily a year in th e Clark1 C o u n t y iJe te ntio n C en te r a nd a $2,000 f in e . In a d d i t i o n ,8 y ou n ay be h eld in ccn tesp t o f cou rt p un ish a b le by an9 ad d itio n a l ~ 50 0 f in e an d 25 days in th e Clark County10 I)Hention Cente r .

111213

D o y o u u n d e rs t an d th is a d r.o n l Hon?fH E !lITN ESS: Y es .UE FOREP ER SO S: Than k yo u fo r y o u r

21

2~ Q.25 A .

l in d d id y o u in te rv iew u ith a n y bo d y 1I h a d a p h o n e in te rv iew w ith Gard Sheppard

14 testiaony. '(~ u a re e xcu se d.15 MR. K ERlh S ta te ca lls Je n n ife r Bloecker,111 h a n d .IS

tK e F O RE P E RS O N : P le as e ra is e your r igh t

Y ou d o s ole mly s we ar th e te st tro ny y ou ar e19 a bo u t to g iv e u po n th e invest iga t ion n o v p e nd in g b ef ore2{ ) th is G ra n d Ju ry sh a ll be th e tru th , th e wno le t ru th , an< l21 no th in g bu t th e tru th , 50 h e lp y o u G o d ?z z2 l2 4

T H E H l~ II & SS : Ye s .' IHE FOREPERSON: P l e a s e be s e a t e d .Y ou a re adv i s ed t h a t yo u ar e here t o d a y to

25 g iv e te s t iro n y in th e in v e s tig a tio n p e rta in in g to th e

Q. Actua l ly th e sp ecif ic add ress i sn ' t2 Ix p o rtan t ,3 A .4 Q.

Oh .H o w a re y o u e tt p lo y e d?

5 A. I' a no t erp l o y ed right nos,6 Q . A n d wa re y o u e o p lo y e d a t s ~ n e p o in t be tween1 2MO an d 200n8 A . Yes .9 Q . W he re were y o u e-tp lo y o o ?101112

A .Q,1. .

K ap la n T es t P re p an d M:r.i ssions,I'll s o rry , th a t w a s be twe e n 2000 a n d 200nOr -- w ait. A re y o u a sk in g Ile be ts e e n 2000

13 to 2001 wh ere I wo rk e d ?Q. Ye s .

15 A , I'ra so so rry . F irs t k led can ntle an d16 F id elity N atio n al ~ itle .17 Q. A n d h ow w ere y o u e a p lo ye d th e re ?18 A. At f ide l i ty?1 9 Q . Ye s .20 A . A t Fidel i ty 1 wa s a fo re clo s u re sp e cia lis t21 Is l l ha t we cal led it.22 Q. l in d w ha t does a ro re cics ure s pe cia lis t d o ?23 A, Hy jo b co n s is ted o f verify ing d ccu a e n t s24 th a t ha d be e n re co rd e d w ith th e Clark C o u ll ty R e co rd e r's25 O ffice . ro d o u ble ch e ck th e sp e llin g s O f p eo p le 's n a re s

1 o ffe n s e s O f"riZa tio n o f s i9 n a tu re of p e rs o n n o t in2 pr e sence of n o ta ry p ub lic , o f fe rin g fa ls e In s tru n en t fo r1 f i l ing or re co rd in g , f a ls e ce rtif ica tio n o n ce rta in4 in s t rum en t , in v o lv in g Ga ry 1 a f i o r d a nd G erri Sh ep pa rd ,561

Do yo u unders t and t h is adv i senen t?f HE W I T I1 &S S: Y es .1 H B F lJ R EP & R S O ll : Plea se s t a t e y o u r f i r s te an d la s t na a e an d s p e ll bo th fo t th ~ re co rd .

9 ~ HE HI'W ESS: Jennifer B lo eck er ,1 0 J -E -IHI -I -F -E -R , Bloecker, e-L-O--C-K-E-R.11 1HE fOREPERSON: 'l ha nl : y o u.12 Ple a se p rcceed ,13 JE N lIIF E R BWECKE R ,1 4 hav i ng be en f irs t d u ly swo rn b y th e ro re pe rs on o f th e15 Grand Ju ry to test i fy to th e tru th , th e I~ho le t ru th .16 a n d n o th in g bu t th e tru th , te s tif ie d as fo l lo :..s :1118192 0 B Y t{ R . K E R lI :21 Q.22 A .

E X A M ll lA T IO t l '

Good n o r n l n q Mi s s Bloecker.Hel lo ,h 'l le re d o y o u l ive?3 Q.

24 A . L as V egas . Oh , r igh t nOli I liv e -- do yo u2 5 wan t 1 I i 1 ' a d d r e s s ?

23

1 a r.d s ee if th e y ...atched wh a t wa s o n a d e e d o f tru s t to a2 g ran t ba rg a in s a le d e e d .3 Q. D id y o u ev e r a ct a s a n o ta ry p u blic?4 A . I did . seceu se a n o t h e r part o f t h e jo b l i a s5 t o n o ta ri ze d oc um e n ts a nd s e n d th en to th e co u n ty to be6 reco rd e d so t h a t foreclosure ccn p a n le s co u ld s ta rt th e1 p r o ce s s o f fo reclo sin g o n h ou se s .g Q. SOwer e yo u re qu ire d to be co se a notary9 p ublic o r to be a no ta ry publ ic a s p a rt of y o u r1 0 e :rp lo ,Y J'e nt t h e n 111 A, I 113S.1213

Q.A .

Ne r e yo u a n o ta ry p u bliC be fo r~ --No .

14 Q. -- yo u r enp loynen t? D id t hey speci fica l ly15 ask th a t y o u D e C O M a M t a ry publ ic?16 A, Ye s .111819

O .A .Q.

A nd ~ ho a sk e d y o u to do t ha t?Geni Sh e p p a r d .'la k in g a s te p ba ck . HOll d id y ou a ctu ally

20 becoae eaployed t he re?21 A . Hy cou s in lIo rk e d fo r G e rri a n d th e n sh e22 to ld n e th e re w a s a jo b o p en in g a n d I a p p lie d fo r it an d23 I got it.

2 4


7/50

2 6

12

an d th a t wa s it.O. A n d \ " a s Ge rri Sh e p p a rd th e p erso n th a t aa d e

2 5

A . ' i s a d riv e r's licen se blo v n-u p p ictu re2 of Ge rri w ith h er s ig na tu re . r t h ink it's a oriver's3 license. I d o n ' t ~ . n ow. It lo ok s lik e a driver 's4 license p ictu re .5 Q . fai r e n o u g h . D o yo u ra coqn ize th a t p e rso n

3 the h irin q d ec is io n?4 A . Y e s .5 Q. D id Gerri Sh e p p ard , o r a ctu a lly le t ze6 re as k th a t. W ho t o ld y o u wha t y o u r jo b d u tie s lIo u id be ?7 A . H egh an wa s th a o n e th a t tra in ed n e a n d to ld8 n e wha t I wou l d be d o in g , bu t G e rri gave ne t he d et ai le d9 list of h e re 's wh a t y o u r jo b lIill co n s is t o f lih an I10 f irs t g o t h ire d a n d p a rt o f it wa s to g e t th e d o cu s en ts11 r eady to h e recorded a t th e co u n ty recorder 's of f ice .121314

Q .A.Q .

l ias G ~rri Sh ep pa rd y ou r s up erv is or?Ye s .i'Il la t is G erri Sh ep pa rd 's p os itio n?

1 5 A . I d o n 't k n ow v h a t h e r tit le wa s . Sh~ w a s16 'J.y bo s s th a t \lo rk e d fo r Fidel i ty . I d o n 't re l!e n be r wh~ t17 h e r tit le Ila s .is1 9

Q. Do y ou k no w where he r off ices w er e l oc at ed ?I th in k they lIe re in ru s ttn , Ca lifo rn ia . I.

20 n ev er w en t there.21 Q . D id y o u e v e r neet G etti S he pp ard in p e r so n ?22 A . I n e t h e r o n ce a t a h o lid ay p a rty .23 Q. W ou ld y o u p le a s e tu rn to K h a t h a s be e n24 a a rk e d a s Sta te 's E~ h ibit 4. H'S in th e p ack e t to y o u r2S le f t. Can y o u p lea s e d es cribe th a t d o cu n e n t?

123

th e n n ota rize th a t d ccu n e n tjA . Y e s , a n d th e n s ilj1 l l ' l . y naae,Q. A n d th e n s ig n y o u r n a ;t;e . A nd liM n y ou lIe re

4 s ig n in g Ge rri Sh e p p a rd 's ne se , y o u d id n 't s ig n as5 Je n n ife r B lee ck e r fo r ce rrt Sh e p p a rd , y o u s iqn ed th e6 n a n e G ~ rri S he pp ar d?7 A . Co rre ct, I Sig n e d th e n a n e G erri S he pp ardS a n d th e n n o ta rized a n d s ta "P ed it a n d 5i9ned n y n a n e a s9 if sh e h a d bee n th e re , bu t sh e v a sn 't,10 Q. Okay . A nd I ' n so rry , if y ou co u Ld ju st11 wa it u n til I 'm d o n e w ith th e qu e s tio n an d th e n a n sw er12 a n d th e n I'l l w a it u n t i yo u Ire d o ne answeri l lg a nd th en13 a~ k a n o th e r qu es tio n , ju s t s o th e re co rd is cle a r.14 A . Ok ay . So rry .15 Q. C an y ou ap pro xlll!a te h ow nany d ccu cen ts y o u16 h'Ould n o ta rize in th e co u rs e o f a ty p ica l day o r a week11 wh ile y o u ".. re th e re ?l8 A . W hen I w as th e re it wa s befo re th e1 9 fo re clo su re 000 -:1 w en t cra ~ y a n d so w e wou ld h av e som e20 d a y s wh e re th e re w ere n o n e . sce e d a y s th e re wou ld be a21 co u p le a n a so a e d ay s th e re wo u ld be 20 . So itwas22 re a lly sp o ra d ic. A nd I ~ 'Ou ld s a y if yo u re a lly v e n te d23 to av era g e it y o u could av erag e to 15 a d a y Jto ly be . I2 4 d on 't re ae nbe r th e re be in g th a t m an y lin e n I w a s th e re .25 Q. D id th a t p ick u p a t so a e p o in t?

21

1234561891011121 3141516111 8192 02122232 42 5

6 to be G erri S he pp ard ?1 A . Y e s .S Q. An d d o y ou re co gn ize that s igna tu re?9 A . I d o recogn ize t he s ig n at ur e be ca us e w he n 110 lia s wo rk in g th e re l 'Io en we h ad to d o th e n o ta rizin g o f1 1 th e d o cu a e n ts we h a d to write h e r n a lle dO\f ll e ven th o u g h12 sh e wa sn 't th e re an d s ig n it a n d th is is wh a t r used to1 3 co p y h e r s ig n a tu re wa s base d o ff o f th is s ig n a tu re .14 Q . SO d id you p ractice R ak in g YOU f s igna tu re15 lo o k lik e th e s ig n a tu re th a t y o u saw?16 A. 1 probab ly did pract lce , 1 don ' t reaeabar ,1 7 I ju s t k n ow th a t I d id it so it wo u ld lo o k lik e this1 8 o n e .19 Q. As a n o ta ry wh a t d id y o u r jo b require o f20 } ' 1 l u ?21 A . A s a n o ta ry I, th e n o ta ry wa s ju s t to s i gn

2 8

22 h er n a n e a n d th en s ilj1 l E ly nane , I d id o't < 1 0 a n y t h i n g23 e lse a s a n o ta ry th a t 1 reO !.e llbe r. r d id n 't k e ep a lo g24 be cau se it l ia s a ll ju s t fo r F id e lity .2 5 Q. S O yo u w o uld s i g n G ar ri S he pp ar d's n a n e an d

A . I t p ick e d u p a f t e r I le ft .Q. H a s th e p r o c e s s by w hic h y o u s i g n e a a n d

n o te cize d th e s e d o cu n e n ts d ire cte d to y o u by a n yb od y ?A . Whe n I s ta rt ed a nd M e9 ha n wa s sh


8/50

30

1 Q . D o y o u re Jle ;th e ~ u t th e tin e p e rio d in2 wh ich that occurred?3 A . P ro ba h ly e a rly 2004.4 Q. 00 y ou re ~ erm er th e D alle s 0 f th e peop le5 tha t wo rk ed in the o f f ice with yo u ?6 A . 'te a h . In m y d l re ct o ff ice , it w as tw o7 lit t le o f fice s riqh t n ex t to e a ch o th e r, a n d in D in e wa sS Meghan and o y seH , an d th e n in th e o f fica n e x t to us WiS9 a la d ~ n a as d Tra cy L aw ren ce an d th e n later a no th er v oa an10 n aaed H ea the r K uh lltiln , K -U-H -L -M -A -N , can e, h u t sh e11 d idn ' t do wh at w e d id , she lias a cco u n t i n g ,12 Q. ~1 lowere y o ur c li en ts ?13 A . I < lid n 't e v e r h a v e to talk p ly to e v e ry n o tice


9/50

3 4

.,1 ~ 'a s so l oog ago , 1'1 '1sorry,~n ' t re, l Iemer every2 lit tle th ing .3 O. D o y ou k no w I1l\y o r w ha t th es e d ocu ne nts4 were u sed fo r, wh a t the ir pu rp o se lia s?5 A . ~ he -- Mo e y . N o. Honey and legal6 rea so ns . B ecause the le nd e r cou ld n o t fo reclo se o n th e7 house o r s ta rt th e fo reclo su re p ro ce s s u n til th e8 d o cusen t had been recorded in Cla rk Coun ty . So it9 need ed to be recorded an d it need ed to be correct, If1 0 th e in fo rll'.a tio n w a s incorrect it cou ld de lay th e11 f or ec lo su re p ro ce ss a n d th e n th e le nd er wou ld n't be able12 to sel l th e h ou se , ge t t he l I: on ey , t it le c OIi lp an yw ou ld n 't13 n ak e th e m n ey . So it 's a ll coney.14 Q . Based on t ha t s ta te ee n t, wa s it yo u r15 in pre ss io n t h a t th is p ractice was to be kep t secret?16 A . Id Oll 't - - I w ou ld huqine that Gerr i17 w ou ld n't w an t u s to go a ro un d s ay in g w ha t w e w ere doing .18 SI) y e s . B ecau se I k ne w, w e k ne w it was wm ng , she ha d19 to h ave X llo wn it w as w ro ng to s ign sonebody ' s Mlle. So20 I d o n ' t thin~ it w ~ s an~ th in q th at she vould wan t us to21 go b ra g gi ng a bo u t. I d on 't re ne nbe r if sh e e ve r s aid22 don 't te l l anyone thi s. Haybe she d id . r do n 't23 reaerher .24 Q. A ll rig h t. W e're going to g o th ro u g h so se25 o f th e se d cc uie n ts , I 'n going to as k y ou to look at

33

1 Sta te 's ElIhi.unber 18 . DOyo u r ec oqn i ze t h e se2 docucent~?3 1. . Yes, I lo ok ed th rou g h a ll o ~ th e se a nd th ey4 a re do cu ten ts th a t I s igned a s G erti S he pp ar d a nd I a lso5 n ota rized it a s nysel f .6 Q . Okay . A nd w ha t so rt o f dccu aen ts are7 t h e se?a A . 7h ese are -- so rry , I ju s t saw one in h ere9 with Maghan ' s n a n e t oo .10 These ar e what we would qe t th ro ug h the11 en a ll to d o uble ch eck an d v erif y t he In fo rm a tio n. Such12 3$ t he t ru s to r and ' th e bene ficia ry and then a ll th e13 reco rd ln q in fo rm atio n , So we xou ld , so it' 5 called the14 n otice o f d efa ult an d th a t's wh a t 1 "'au ld h av e to v erifyIS an d then n ak e su re tha t it wa s ready to be reco rd ed an d16 if it was we wou ld , r wou ld s ig n Gerri ' s n ane , s tan p it11 an d da te it a nd th en o $i9 n T l . ' j naae .18 Q. Okay . A nd 1 'n g o in g to a sk y o u to go19 th ro ug h each o f th ese Individual ly. l'n go ing to read20 th e ba tes n u rber wh ich is th e n u rh er a t th e oot tO!l r ight2 1 corner .22 A .23 Q.

Ok a y .A nd I'l il g o in g to a sk y ou to iden t ify t h a t

I I'm go in g to a sk y ou whe th e r tho se d ate s a re o n o r abo u t2 th e da te th at they lIe re s ig ned and n otarized .3 A . Ok ay ,4 Q . $0 p le a se lao ); a t ba te s n usbe r 611 th ro uch5 614, bates nunbers 019 th ro ug h 6 24, 6 35 th rou gh 636 .6 A . W a it.7 Okay .8 Q. 6 3 9 th ro ugh 6 40, 6 43 th ro ugh 6 44, 6 5 39 t h r ough 656, 66 1 th ro ug h 6 62, 6 65 th ro ug h 668 , 61910 th rough b e O , 6 a 3 th rough 690 , 695 th rough 696 , 61911 th rough 104, 113 th rough 114, 10 through 144, 14712 th ro ug h 748 , 7 5 3 th ro ugh 7 54, 159 th ro ug h 76 4, 58 513 t h r ough 596.1415

A . Okay .H av e y ou had th e o pp ortu nity to rev iew/.

16 t he se d o cu n en ts ?11 A . Yes .18 O. Is that y ou r s lqn atu re a nd n ota riza tio n19 loca ted o n p ag es 2 o r 3 o f th ese do cu aen ts t20 A. Ye s .21 Q. A nd w ho se s ig natu re w ere yo u purpor t ed ly2 2 n o ts rt z in g ?23 A . Gee d Sheppa rd .

Q.A .

A nd w ho a ctu ally a ad e th at s ig na tu re ?I d id .

242 5

3 5

1234567s91011121314151611181920212 22 3242 5

24 th es e a re d oclliI:e nts th at you s ign ed and notar ized as25 well a s th e d a te o n those d o cua sn ts an d th en a t the en d

Q. l ih ic h c li en ts were these dccuxen t snotarized fo r? A nd I'll represen t to y ou th es e e xh ibitsar e all a single client's.

A . Oh, o k a y . C a l-W e s te rn R e co n v ey a oNCorporation.

Q. A nd a re the da tes on th ese d o cun en ts on orabou t th e d a te on wh ich it w ou ld h a ve been created?

A .Q .A .

Wh i ch d a te ?'lh e d a te o n th e dccuaen t ,Yes . Yes . W e wou ld qe t th e a an d genera l ly

reco rd th ea th e saze day . th e re \'Ie re a few in s tan ce sWhe re it would de lay a coup le of day s but.

Q. Sois it fa ir to say it's o n o r abo u t tha td a . , . ?

A .Q.

Yes.Ok a y . T ha n k y o u.Wou ld y o u p l ea s e tu rn to S ta te 's E xh ib itJlu iaber 1 9. A nd \ 'Ie 're g o inq to do th e sa l'. th in g a s we

d id w it h 1 1U l1 be r1 8 .A . Okay .Q. A ga in I lIan t yo u to ju s t lo o k a t th e d a te ,

th e s rqn a tu ra an d th e n o ta rfza tto n . Hav e y ou seen the sed o cu a en ts b ef a r> :) ?

A .Q.

Yes .l ind wh ere h av e y ou seen then ?

3 6


10/50


11/50

4 2

1 of the docussntsj2 A . My s ig n a tu re o n the no ta ry line a nd ae3 s ig n in g fo r Gerri Sheppard .4 Q. o n th e s ignature l ina1567

1 1 .Q .A .

On th e s ig n a tu re lin e .A nd wh ich cli e n ts a re th ese dccueen t s for?7 hey are fo r 3 A rch Tru s tee s e rv ices an d

4 1

5 erse in th e o ff ice to n o ta rize th ei r s ig na tu re s?6 A . Yes. In th a o f fice n e x t to u s wh ere Tracy7 lawren ce wa s, if sh e was o u t on v aca tio n o r o u t sick weS liou1d ge t esai ls fm't h er bo ss , an d h is n am e wa s Gary9 Tra ffo rd , an d we wou ld d o th e ex a ct s ax e th in g bu t with10 d ocu sa nts th a t h e sent , so fo r d if fe ren t clien ts ,11 so ae t in a s it l ias the s a n e clien ts . A nd it was ju s t1 2 i/p era tin g under, sh e w as IIO rk in g fo r wh a t lidS Ch icilg o13 Na t i o n a l 'HUe 1 think it wa s ca l l ed . It wa s th e saxeH th in g th o u 9 h , th e not ice o f d e fau lt , m a k e su re th e15 in fo ma tio n l ia s c or re ct an d th e n se t u p th e d o cu a en t to16 be re co rd ed . A nd we wou ld s ig n , 1 l:o u 1d s til l n o ta rize11 it in m y n ame bu t s ig n it fo r Ga ry T ra f fo rd ev e n th o u g h18 I n ev e r Ee t h ill l , 1 o n ly ta lk ed to h im on th e phoM an d19 th ro u g h en a t ls .20 Q. H O I l much interaction di d yo u h av e w ith21 . Gerrt Sh e p p ard o n a d a ily bas is ?22 A . Pre tty requ la rly . Th ro u g h eaa l ls w he n w e23 ~ ,< )\lld g e t th e requ es t to d o so x e th in q an d ev e ry o n ce . in24 allhile o v er th e p h o n e .25 Q . o id y o u e v er h av e a n y co n v ersa tio n s with

B L an dA s.e rica D efa ult Se rv ice s, A~5e t Fo r ec lo s u re Serv ices~ In c, a n d Hous ekey F in an ci al C orp ora ti on .

lfr Q. Hav in g lo o k e d a t th e s e ex h ibits is it sa fe11 to s ay th a t th e n o ta riza tio n preccdure w as th e s an e fo r12 al l t he se docunen t s?13 A . Yes .14 Q. And w a s it th e s ame re g ard le s s o f wh ich15 cli~nts yo u were s ig n in g fo r?15 F l. Yes. N o . I th in k th ere l ias on e cl ien t11 th a t lia s d if fe ren t bu t r d o n 't re :te re e r who it wa s .18 Q . Okay.19 A . Sorry .20 Q. Bu t --2 1 1 1 . Otherwise , y~ s , th e sa l l e .

I22 Q. Wit h regard to th e docunen ts th at we se e23 today , th e p ro ce ss was th e sil!!.e?24 A . Ye s .25 Q. A nd were a ll th e s e sig n a tu re s an d

12

A .Q .

Yes .A nd wha t h a p p en e d to a ll th e s e n o tice s o f

1 n ot ar ila tio n_ e in C la rk C ou nty , l le va da ?2 A . Ye s .3 Q . 1he o ne clie n t th a t was dif ferent , d o yo u4 recall h o", it wa s d if f e ren t?5 A . I d o n 't reaenber IIho itwas a n d I d o n 't6 e v en r e: ne le be t if it wa s fo r th is d o e u ee n t ca lled th e7 n o tice o f d e fau lt , bu t th e re wa s docuaen t s l ihere we ha d8 a s iqn a tu re p aqe a lrea d y , a s fa r a s it had already been9 s ig n ed an d notarhed and we would just a t t ach th e10 s ig n a tu re p ag e to a p iece o f p a p er. Bu t I don ' t11 rCIell'ber w ha t c li en t it wa s .12 Q. W ou ld th a t d o cu n en t be sig n e d an d1 3 n ota rize d?1415

A .O .

Yes .O kay. And it would co n e to yo u s ig n e d an d

3 defaul t after th ey 're s iqo ed an d no ta r ized?4 A . They wou ld g e t tak e n d o w n to th e Clark5 co u n ty Reco rd e r's Off ice a n d be re co rd ed a n d th en th e6 co un ty w ou ld n ail back th e o riqin a l to th e a d d re s s o n1 the fro n t p ag e .a Q . O k a y . A nd how do you k n ow th a t?9 A . B e cau se th a t 's wh a t would h a p p e n .10 Q . D id y ou se e th at h ap pe n?11 11 . Th a t lia s th e p ro ce d u re , ~u k nO>l, I h a v e12 reco rd ed d o cU!te n ts be fo re so I k n ow th a t 's Io 1h a t13 h a p p en ed . B u t w e ha d a p erso n , h e r n an e was Diana, an d14 sh e lo .'Ork ed fo r a s e rv ice , th a t sh e wou ld co n e a n d p ick15 u p th e d ccu n e n ts f ro :t l o u r o f f ice , tak e th ~ d o~ 'l l to th e16 co u n ty , g e t th e n re co rd e d , a n d th en sh e wou ld brin g bacc11 a co p y . O n th e s e th e re 's a s ta !


12/50

4 6

1 Ca ry Traffo rd ?2 A , o n ly S f rLacy l ias o u t sick . Or on3 v a ca tio n ,4 Q , W e r e th o s e co n v e rs a tio n s in w h i c h h e5 de ta i l ed to y ou or directed to y o u h ow to sigo his naee6 a nd th en n ota rize it?7 A , Ju s t -- y e s , I Ihen h e w o u l d say s ign th is ,

4 5

1 if I saw it bu t what h ap pe ne d w as I ju s t re n e a bered in2 ny file cabin e t th e re we re ce rta in o n es . It wou l d r < a y W3 be o n ce ev ery o th e r week . It wa s n o t th a t o fte n , B u t4 th e re we re certa in clie n ts wh e re th e re l ias soae th inq5 specia l abou t th e n an d yo u w ou ld just us e t ha t page6 in s te ad . 1 don' t reaeaner why .1 0, So in th e be g in n in g "'h e n you s po ke w ith8 Gerri Sh ep pard , h o'. d id sh e te ll you to s ig n h er nane?9 A . In th e very beg inn ing I wa sn 't g o in g to10 h av e to s ig n a n y th in g a n d I wa s g la d be ca u se r d id n 't11 wan t to a n d th en wha t h ap p en ed o n e da y wa s I th in k12 Hegh a n a n d Tracy we re be th s ick an d it ca s e d own to th e13 fact tha t oh , the re 's nobody here with a notary, wha t14 ar e I!e 90 ing to do . A n d so 1id s ig n M egh a n 's na ze an d15 th e n G erri's n a ...e o n so a e d o cu n e n ts , An d it was a t th a t16 p oin t wh e re it wa s yo u n ee d to g e t y o u r own no ta r y stal '!p17 becau se th a t H ay yo u 're a t lea s t s ig n in g y o u r n a n e ini s case t h is h ap pe ns ag ain w he re M eg han an d Tracy are no t19 there, So it wa s ju s t a conversation of lie n e e d to qet20 you your ovn n o ta ry s ta it 'p ,21 Q. You s ta te d th a t y o u p ractice d th e s ig n a tu re22 p rio r to s ig n in g it?23 A . Y e s , I l io u ld h a v e d o n e it o ff o f th a t --24 so a e th in q. If it lias n't th at c~a c t thing it wa s25 s oa eth lriq w ith h e r s ig n at ur e on it. M ay be a n offer

8 record it.9 Q. Have y o u e nt er ed in to an ag ree ne nt with th e10 A t to rn ey G e ne ra l's Office with regard to your11 in vo1v e l1~ nt in th e activ itie s w'e d escribed h e re to da y ?12 ~ . Yes ,13 Q. An d wha t is th a t ag re en e n t?14 A . Th a t I a m . giving yo u information be ca u se 115 d id so o e th in g illeg a l an d will p le a d th a t I d id16 sonethinq il le g a l la te r.171S192 0212 22 32 4

Q.A .Q.~.Q.A .Q .A .

H a s t ha t plea b e e n entered ye t lN o ,1Iill yo u look at Exhibit NUli l ie r 25,Ok a y .00 yo u reco g n ize th a t d o cu n e n t?Yes ,W ha t is it?Th is ia th e a gre em e nt t o cc op era te dccuasnt;

I a gre e:!:e nt of . 1 m coopera te an d g i ve I n fc rn a t .i o n2 a n d p le a d to a m isd em e an o r fo r what I h a v e d o n e ,3 Q. A nd wha t d o yo u underst and your obHga t icns4 to be unde r t h is ag r e emen t?5 A . To te ll yo u a nd e ve ry o ne wha t we d id an d6 w h at h ap pe ne d in th e office .1 Q. A re yo u obi ig a te d to s a y an y th in g o the rS th a n th e tru th ?9 A .10 Q ,n doc\U!entl

N o .Is th a t y o u r s ign atu re o n page 4 o f th is

25 th a t 1 s ig n ed lih ich o u tlin e s th e , wh a t 's th e v o rd , th e

1 Q. Okay ,2 T H ~ rOREPERSON :Add i ti o n al q u e st io n s ?3 BY A JU RO R :

Q. In y ou r co aa un ica t io n with Gary T ra f fo r d or

1213

A . Yes .M R. KE RN : ~ he S ta te ha s n oth in g f urth er,

5 Geui Sh e p p a rd d id y o u ev e r brin g u p yo u r co n ce rn s th a t6 it m ig h t b~ il le g a l wh a t y o u 're do i ng?7 A . llo . I t a lk e d abo u t it w ith H eg ha n be ca us eS I knell tha t it lias i l l ega l bu t r d id n 't w a n t to bring9 th a t u p w ith G en i because it was m y job an d I d idn 't

10 \lan t to ris k lo s in g it an d so 1 d id n 't wa n t to g o to h er11 an d s a y o h hey , I d on 't wan t to d o th is because it's12 IIrong , 'f0 tie th e risk of lo s in g th e job wa s wor se t h a n ,13 j u s t sign it even th o u g h it 's ju s t Ge rri' 5 n aE !!, ju s t14 s\;eep it unde r th e rug and s ign it.1 S TH E r o R E ~ E R S o . ' l : A dd iti@ al qu es tio ns ?16 Q;. t e s t ion ,17 BY A , J U R O R :la Q . You sta ted th at you receiv ed a d ocu nen t19 th a t wa s s ig n ed an d th e n n o ta r Ia e d an d then y o u a tt ac h ed20 it to th e leg a l --21 A . Correct .22 Q . ~ ho lia s th e s ig n e r o n th a t d o cu n en t?

1 4 f H E F O R E P E R S O ! l : Ju ro rs , d o y ou h av e15 quest ions?16 B ,{ A J U R O R :o . I do . In wha t capaci ty d o ~ 'o u k no w t ha t

23 A. 1 d o n 't re n ea o e r. I ju s t ba re ly re ae nbe re d24 rig h t n o s th a t th e re x e re certa in s itu a tio n s lik e tha t .2S It d id n o t happen v ery o fte n . I m ig h t re t tenoer th e n a ~ e

111$ G erri S he pp ard w a s s i g n i n g ; like as an o ff ice r o f th e19 c o a p a n y o r --2 0 A . L 'n so rry . K o \ ; do I k n O l l t ha t sh e w a s2 L s ig n in g a ny th in g?22 Q , Or do yo u k n ow? D o y o u k n o \l in wh a t23 ca p acity sh e wa s signing?24 A . A s , 1 th in k a s a tit le o ff ice r. Th a t w a s25 th e fa rth e s t th a t I k n ew o f it.

4 7 4 S


13/50

50

!.

ele t te r fo r th e jo b o r so n e th in g th a t sh e h a d s ig n e d .2 Q . Ilid s o e e c n e tell y o u to p ractice th is3 s iqn atu re ?

II.5 W e ll, I d o n ' t re n e nbe r , Th ey n iqh t h av e6 because It h ink w e v ere try in q to g et it to lo o k lik e1 hers.

Q . So y ou don ' t re ae nbe r o r you ' re n ot tel l iHJ

5~

15

9 I1e110 A . 1 1 0 , I d on 't re ~eE Iber. If I -- knowing ro y11 bra in an d n O l i it I I O r k s it .ould n a v e been t ha t w e w ere12 try in g to m ate it l ook l ike he rs . lie a s in n e a n d13 M eg nan . ,14 Q . S O d id I { eg nan sa y yo u 'v e g o t to Rak e th is15 lo o k like Gerd' 5 s ign a tu re o r di d yo u COlle u p w ith t ha t16 on yo u r ol in?1718192 02 1 B Y II J U R O R :

Id o n 't re ze nber ,JH E fOREPERSOO: Add i t i o n a l ques t ions?A J U R O R : 1 'r.! n o t f in ished .T HE I 'O RE PE R SO lI ; O h, so rry .

23

Q .A .

D id th ey USe th e ~ lltd fo rge or f org e ry ?r don ' t r e l l e : < . b e r . I'a s o r r y , it w a s so

5 2

A .

22 Q . D id anyone eyer say to yo u tha t yo u n e e d to23 fo rge th is s ig n atu re to m ake It l ook like Gerd' s2 4 s i9nature o r --25 A. Yes, it Iwuld have bee n -- ye s . we n e e d to

1 h a v e a p e r l o d o f n o t working. So itwa s k in d o f lik e I2 kn ew th e re was an e n d in s i9h t , I ju s t n e ed ed to s tick3 it out , g et it d o n e with a n d I v ou ld be d o n e a n d able to4 move o n.S Q. I don 't have anl"lOre quest ions.

THE f ORE1' E II ;SO l i: Add i t i o n a l q\ le s t ions?7 B Y A JU RO R:a Q . Yeah . D id yo u ev e r ex p re s s with y o u r p ee rs9 your Con ce rn s a bo u t d o in g s o re th in q th a t y o u th o u g h t w as10 i l l e9a l?11 A . Y es . 1 k n ow I ta lk e d to M egh an abo u t it12 because I d id n't want to do it. I d id n't l ike it .13 Q .1 4 t h is?15 A .

A re yo u aware th a t o n e pe r son re fu s e d to d o

No .Okay .THEF OREPERSOIl: Addit ional quest ions?

1 611

Q .

1$ Que s t i o n .1 9 B Y II J U R O R :20 Q. ~hen yo u ' re a notary d o yo u h a v e y o u r21 ce rtif ica te o f n o ta ry f ro n th e s ta te , is it d isp la y e d ?22 D id y ou e v e r rece iv e a certifica te th a t y o u wou ld23 d isp la y lik e y o u ~ u ld a bu s in e s s lice n se ?

A .Q.

I dOn't renenber , r real Iy d on 't re as abe r.A nd yo u wouldn ' t have no t iced whe t h e r Gerr i

2425

4 lon g a g o .S Q. D id yo u eve r tra ce th e s ig n a tu re , h o ld a piece of pape r u p to a g la ss a nd a no th er p is ca o f p ap e r1 an d t race over it at al l , to a ny on e's s igna tu re?8 II. 1 probably d id th a t w ith Gerd ' s because9 I 'Ill OC ' D an d I l ike th in g s to lo o k , I wan t e d it to l o o k10 like hers. Bu t I hones t l y do n ot t e : ; : e~J: l e r if so s e b o d y11 to ld a e to o r n o t. I wou ld iEla g in e M eg h an :,'Ou ld h a v e12 saId try to get this to l ook l ike th is . B e cau s e w e both13 trie d to look l ik e th at s ig na tu re .

Q. So in th e process o f d oin g th is ove r an d15 ove r an d ove r a g a in , y o u n u s t h av e r ea l ized th at th is16 v as wtcn g an d i l l ~9al ; is th at riqo t?1 7 A . ' { a s .18 Q . B ut y o u co n tin u ed d o io g it anrolay?192 0

A .Q.

res,Beca u se yo u wan te d to k e e p y o u r job?

21 A . B e ca u se 1 w an te d to k ee p th e jo b an d I w as22 f inishlng 901ng to sch o o l fo r I:IY n a ste r+ e de gre e to23 te a ch Eng lish in h ig h sch o o ls a n d it w as ju st th e l a s t ,24 I was a lecs t do n e with r r . y degr e e a n d t ha t would be th e25 last job t ha t I h ad before I t augh t , so I d id n 't wa n t to

1 ha d o ne t he re a s we ll as Gary, a co p y o f th e irs n : aybe12 A. I don ' t re tt eG 1h er. I don 't t hin k G erri3 wou l d h av e h ad any th ing th ere b eca us e h er Ir .a in off ice4 wa s in Ca lifo rn ia . A nd r d o n 't -- [ d o n 't re )l.e Jilie r if5 W 9 di sp l a y e d it a n ywhe re , I don f t r en ewer if lie go t6 a n y t h i n g . I s e a n I g ues s ...e did.1S910

Q . "lh an k y ou ,A, Sorry.

T H E f O R E PE R S o tl : A d ditio na l qu es tio ns ?Q. Just on e cla rif ica tio n . You r n o ta ry s e a l

11 h a s th e l a s t naaa o f L owe . That wa s th e n am e y ou f l e ret2 u s in g a t th a t tir:e ~

A. ' ( e s , I w a s t '< lrried an d th at w as I:IYMae bu t314 now I'm ba ck to m y lI'3 id e n n a x e o f Bloecker .

t i l E F O R EP E R S ON : T ha nk y ou .16 By la w, th es e proceedings a re s e cre t a n d17 y ou ar e p roh ibite d from d is clo s ing to any on e any th ing18 th at h as tran sp ire d bfore u s , in clu d in g ev id en ce a n d1 9 s ta te re nts p resen t ed to th e Gran d Ju ry , a ny e ve nt20 o ccu rrin g o r s ta te s e n t ea d e in th e p re s en ce o f th e G ra n d21 Ju ry , and iMom.tion ob ta inCil by th e Gran d Ju ry .22 E 'a ilu re to co ;;"p iy w ith th is ad a o n lt io n is a23 qro ss m isd em ean or p u nish a ble by a y ea r in th e Clark24 County D e te n tio n Cen te r a n d a $~,O O q f in e . In a d d ltio n ,25 y o u m ay he h e ld in co n tem pt o f co u rt p u n ish a ble b y an


14/50

541 add it io n a l $500 fin e and 25 tin th e Clark Coun t y2 O et~ ntio n C en te r.34

to yo u u n d e r s t a n d t hi s a dn on it io n?7 118 HmIRSS : Yes.

5J

Q . A nd du rin g th a t tin e pe r i od d id He .

5 7HE FOREPERSOO: T han k y ou fo r yo u r6 tes t ioony. Y o u ar e excused ,7 MR. K ERlI: A nd with y o u r p am is s.io n w e8 wou ld lik e to tak e a f ive n in ute bre ak .9 'rHE F OREPERSOU: E x ce lle n t,

iO11

(R ec~ ss , )MR.K ELLEHER :lit thi s t iz e th e S ta te v ou ld

12 l ike to reca ll Tracy L allre nc~ .13 7HE f OREPERSON : Plea se r a i se your r ight14 ha nd.15 Yo u do solel ' l1 l1y swear th e te stio on y yo u ar e16 abou t to g iv e u po n th e in v e s ti9 a t io n M il pend ing before11 t h i s G ra nd J ury sh a ll h e th e tru th , th e wh o le t ru th , an d1 8 n oth in g bu t th e tru th , so hdp you God?19 THE I'/lTN~SS: I d o.2 0 T H E : fO R E P E R S m l : P le as e be se a ted ,21 Yo u a re a dv l.s sd t ha t yo u a re h e re tooay to22 g iv e te s t il lGny in th e inv e s t ig a t io n pe rta in in g to th e23 of f enses of n o ta riza tio n o t s ignature of p erso n n ot in24 pr esence o f n ota ry public, offering f a l se Instruxent (or2 5 f il ing or re co rd in g, fa ls e ce rt if ica tio n on certain

123 B Y MR. KELLEHER :

E X J > . . M l N A T I O ~ 1

Q . Mi s s La l l r ence , I'd l ike y ou to ta x e a lo o k5 at Exh ibit 22 in th e p ackag e in fron t of y ou , ba te s taap6 nu nba r 951 th ro ug h 9 53 . Can yo u id en tify th a t docunentj1 A. Yes.S9

1 0

Q. Wha t is th at?A . A no tice of defau l t .Q. A nd on page 952, th e s ec on d p ag e o f t ha t

11 Exh ibit 22, do you knOll wh o s ign ed th at?12 A. Yes.13H1516

Q .fl.Q .A.

Ilh o s ig n(> d it?Idid ,Who s e nan e d id yo u s i gn?G a ry T ra ff o rd .A nd in wh a t capac i t y?Could you - - wha t d o y o u ( il ea n? Could yo uL7 Q.18 11.

19 clar i fy?2~2 1

Q.A .

He's s igning a s IIhat?Oh. For l Ia tio na1 D efa ult Se rv icin g

2 2 co rpo ra tio n a s an ag en t f or A rn e ric a s erv ic in g COi\p3ny23 and th en by Chicago D efau lt a s ag en t.2 4 Q. Okay. 1 I r n l then o n th e n ex t p ag e , th e25 no ta ry , can yo u id~ntifywho se s ign a tu re th a t is ?

1 Instrucent, 1.in9 Gary Tra ffo rd and Geni Sheppa r d .23

D o yo u unde r s t a nd t hi s a d vi se ;r .e n t?Y H E lHTflESS: y ~ s, I la 'a n .

56

c __ _

~ ~H&F OREPER SON ; P le as e s ta te y ou r firs t5 and I as t n sne an d sp e l l bo th fo r th e reco rd .

T RE Ii IT !l~ SS : T ra cy Lawr enc e . T'R-A-C-,7 L-A-I'/-R-E-N-C-E.a9

1 HE F OR E PE R SO N : Thank you .P le a s e proceed.10 HR. K ELLEHER:One h ou sek eep ing aa tte r , 1

11 wou l d as k th e grand jurors if y o u c ou ld d is re ga rd12 &~hibi t 21 th a t 's in yo u r p acx e ts . W e d o n ot in te nd to13 in tro du ce t ha t in to . ev i d enc e .14 11 JUROR: '(here is n o 21 in ou r packet .15 HR, K ELL EHER: Ok ay . W e wan ted to t


15/50

58

1 Tra ffo rd ev er a ppe a r in f!o f y ou an d s ig n in fro nt2 of y o u ?3 A . N ev er.

Q . So all th e docutents 'IOU looked a t la s t

511 d es cribe d o f th e n ota rie s, of s i gn ing Mlleone ' s e l se2 n an e an d n ota rizin g it, lias th at g en era l p ra ctice by a ll3 th ~ notaries th at w ork ed th ere to y ou r k no l>lled 9~ 14 A . In th e be g1 nn in 9, yes.5 Q. D id it cha nge ?6 A . W e ll, I-Ih en , up u ntil th e p oin t wh en Jo se ph

5 w ee ~ w ere d on e d urin g th at til1 le p erio d?6 A . r d id n 't lo o k a t th e dates bu t I p re s u ae , 17 ae a n th e y we re a ll s ig n ed by lIle an d n o ta rh ed by 1M.S Q. A nd those were th e d a te s y o u h 'O rie d th ere ,I) 20 03 to 20 08 ?10 A . Yes .11 Q. O~ay . A ll r i gh t . A nd th e d ate t ha t y ou

1 !lo el wa s h ire d th at w as th e p ra ctice of e v ery n ota ry to8 ny ~now l e dge .9 Q. W h a t c ha n ge d w he n M e . N o e l w as h ire d?A. H e re fu s e d to d o it.

D o y ou knOll I Ihy?1 2 s i']n ed th ~;Q lK lu ld th at be th e d a te th a t 's re f le cte d o n13 t h o s e d o c \I li le n t s?14 A . Y~s .1 5 c . Okay . Ilow you te s tif ied la s t w eek th a t y ou

1011 Q .

H ve re in s tru cte d oy y ou r s up erv iso r M r. Tra f fo rd to s ig n11 h ls n a re , n o ta rize it an d th en h av e th e d ocu ne ntIS re co rd ed a t th e co un ty recorder ' s of f i ce ; correct?19 11. Yes.20 Q. Can y o u e s tim ate d u rin g th e tin e p e rio o '03

12 A. ~'hat wers h is re a s o n s ? N o. I ju s t k n ow h e13 re fu s e d to s ig o scce e n e e ls e 's n aa s a n d n o ta rize it .14 Q . Okay . D o y ou re ca ll which c l i en t s yo u ",ere15 s ig nin g d ocu men ts fo r? In o th er f tO rd s s ig nin g16 Hr. Trafford' s nane a nd t hen nota r i z ing?17 A . Y e s .16 Q. Can y ou to th e best o f you r recollection19 lis t th e a ?20 A . Cal-Western Reconveya nc e , Ca l i fo r n i a

2 1 to 'O S hOll re an y d o cu m e nt s t o y o ur k n oa l~ d ge vere22 re co rd e d th a t y o u s ig n e d M r. Y ra ffo rd 's n a n a a n d23 nota r i zed?2 4 A .25 Q.

BalLpark f ig ure , m a ybe 2 5,0 00 . P os sible .To your know l e dge wa s t h e p ra ct ic e yo u

21 R ec on v ey a nc e C o: lp a ny , R e co n Trus t O>npany, Na t i on a l22 D e f au lt S er vi ce s CollJlany, H o u se k ey C o rp o ra ti on , T ru s te e23 Co rp . Th o se a re th e big n a a a s tha t I ca n pu l l o u t.24 Q. My other s?25 A . 'i'h ere w ere s oa e t ha t w e ~ '1 lu ld d o , l ike H a x

591 A . Yes .2 Q. D o y o u k n O l l I Ih~ ther a fo re clo su re ca n o ccu r:3 withou t th e M tice o f d efa u lt be in g file d a n d re co rd e d ?4 1\. In certain states, ye s .S Q , In N e v ad a?6 A . lia.1 Q. W st week se d is cu s s e d a e ",a il th a t lia sB Ex h lbit 1 be liev e 17 . Can y o u ta k e a lo ok a t th a t9 a g a i n ?i c 'Ine v ery la st en a i1 e x c h an g e w h ic h is o n

H th e first page o f Ex hibit 1 7 , ba te s ta n p nu nbe r 245,L2 it's at th e to p , it' a actu a lly th e second to th e las t ,13 it's em ail fron you to Ga ry . D o yo u se e that?H A. U h-h uh . Y es .15 Q . l iha t ' s th e date o n th at?i6 A. Ja nu ary 2 6, 2 00 6.11 Q . An d can y ou a ga in re ad th e th ird l ine , wha t1a that s a y s ?19 A . A ny w a y , p er y ou r in stru ctio ns I w ill20 c on t tn u c t re a ti ng o u r docs a s I h a v e a ll a lo n g , Le ,n s ig nin g y ou r n ~'te a nd Mtaddnq r ayse l f . If th ere a re22 an y fu rth e r ch a n ge s le t lI e k no w. Th an ks .23 Q. W ere y o u e ve r n otif ie d by M r. Tra f fo rd o r24 a n yo ne e ls e th a t th at p ro ce d ure wa s g oin g to change o r25 h ad ch an g e d ?

6 01 D efau lt Serv ices , I d o n 't k n ow if th ey 're s til l a ro und ,2 th a t 's a s :ta lle r on e I ca n th in k o f. r ca n't re ally3 t h l n k o f an y o t h e r s ca l.L e r n aa es ,4 Q. To y o ur k n ow le dg e w ere th e re a n y c li en ts5 th a t yo u were s ig ning d ocu ne n ts o n beh alf o f wbere y ou6 d id n 't u s e th e p ra ctice y o u d escribe d ? In o th e r h 'o rd s ,1 y o u a ctu a lly h a d th e re p re s e n ta tiv e s a pp e a r in fro n t o fS y o u a nd s i~ n it in front o f yo u?9 A . N o, n o re p re s e n ta tiv e e v er a p pe are d in10 fron t o f ae . 'i'hougll -- wel l, documents t h a t we r ece i ve d11 like t h r ough Fed Ex o r UPS, th o se l I'e re u s ua ll y a lre ad y12 n o ta rize d so tho s e o bv io u s ly I d id n o t, bu t n o13 representa t ives e v e r appeared b ef ore It e.141 5

Q. A nd o th e r th a n n o tice s o f d e fa u lt w e reth ere an y o th er d ocu ne n ts to y ou r k no vle dqe th at y ou

16 were s ig n in g SOmeone e ls e's n aa e a nd n ota rizin g?11 A., Ye s .la Q. W h a t w e re t ho se d o cu ae n ts j19 A . R e$cis sio n o f n otice o f d efa ults .2~ Q. M d wh at's y ou r u nd ers ta nd in g o f th e21 pu r po s e o f a no tice o f d e fa ul t?22 A . To s ta rt f ore cl os u re proceedings on a23 ICor tgaqe .2 4 Q . Okay. S o l Io u ld it h e fa ir to sa y th a t 's25 h Ol~th e fo re clo su re p ro ces s o ff icia lly s ta rts ?


16/50

6212 '

N o ..Q. A n d wha t lia s th e reason you sen t th is e j;l~ il

611 a gre e:te nt w ere , w ha t were yo u requ ire d to d{)?2 A . r wa s requ ited to ap p ea r be fo re th is Grand3 Ju ry , I lia s required to t e s t i fy a t any tria l th a t wou ld4 re su lt iro n th is Grand Ju ry , and in e x ch a n g e ] l iou ld5 p lead 9UUty to a qr{)ss o i sd en eano r .6 Q. H ere y ou a sk ed to 00 My th ing o the r t h an7 te ll th e tru th ?8 A . N o .91011

Q .A .Q.

Were y o u coe rce d in an y way?No .And di d yo u in fact p le ad guil ty to a gross

3 to Hr . T ra ff ord a ga in ?4 A . B eca us e h e h ad 9 iv en ae t hose ins truct ions5 over th e p h o n e and ] wanted sczeth inq in w ri ti ng fo r ny6 ow n p ers on al re co rd s.7 Q. D id you have a ny re se rv a tio n s abo u t th eS leg a lity o f th is pract ice?9 A . Ye s ,10 Q . Wh a t w ere th os e reservat ions '? Wh a t l ias11 yo u r concern?12 A . W ell, I knew it was , it wasn't righ t , t ha t13 it w as w ro ng , an d I l Ian ted to have soas kind of1 4 p ro tectio n in th e ev en t th a t, yo u k n o w , sO!1.ething a r o s e15 tron th e , f rom w ha t w e w ere d o in g .16 O. D id yo u ev er ex p re s s th o se co n ce rn s to a ny17 of I 'o u r c o -wo rk e rs or t o l l eagues?18 A. Probab ly . I co u ld n 't g ive y o u a19 conversat ion verbatin bu t, y ou k r.o w, itwa s soaathinq20 th a t was d iscu s sed f[Q:J. tine to tin e.2 1 Q. NowI Ih en yo u te s tified la s t week , y ou w ere

12 m is de ille an or in c ou rt yes t e rd ay?13 A . Yes .14 Q. Okay . A nd sfl(!ciiica lly d id y ou p lead15 guilty to on e gross ai sd e a e a n e r coun t of v io la tio n o f16 N RS 24Q , [55, notarhat ion o f sig n a tu re o f p e rso n no t inP the presence of a notary?IS A . Yes ,19 Q. A nd why d id y o u p le ad g uilty to th at?2 02 122

A. a e ca us o - -Q . D id yo u in fa ct --A. -- I did do t h a t .

6 4

22 t e s t i fy ing pu rsu an t to an agreenent to coopera te with23 ou r officel is t ha t c orre ct?2 42 5

A .Q.

Ye s .And d o yo u reca ll wn a t th e te rs s o f tha t

123

s tat ing t h a t th e person l ias appear inq in fro nt o f yo u?A . Y e s .Q. A n < l a t any ti lle when y ou w er e s ign ing

4 docusen t s on behalf of th e co~ p an y you \le re wo rk in g fo r,5 w as th e p erso n s tan d in g in fro n t o f y o u wnen yo u6 notarized it?1 A. Gary ?rafford , n o . O cc as io na lly o th era e .rp lo ye e s, y e s.9 Q . Fo r no t ice s o f d ef au lt ?10 A . Ye s .II12

Q.A .

Hal l Eany p erce nta ge w is e wou ld th o s e be?It depend s or; rea lly th e tin e f ran e tha t

13 yo u t r e ta lU ng abo ut.H Q. Ca n yo u exp la in?15 A . W ell, l ik e wh e n Joey can e a lo n g an d16 initially h e d id n 't n av e a n o ta ry so 1 wa s th e oniy11 no ta ry the rs , an d then K eg han can e a lo ng , So o th e r th anJ e when h e lia s there, I d id n t t s ign fo r a n y other, r didn 't19 n o ta rize a n y o th e r e rp lo y e es so , I don 't re cen ber h ow20 busy I ;e w e re "hen he firs t s ta rted .21 Q. W as th a t n ors to a a rd s th e e n d th ou g h ?22 A . Yeah." Yeah .

Q . N ow c an yo u re s ta te fo r us specif ica l ly th e2 4 n am e (If th e cDlpany yo u were ex p lo y ed by ? A nd th e25 re aso n I a sk th is is we 'v e heard v ario us n ar.:e s of th e

23 Q. A n d th e s igna tu re l ine s on th e no ta ry24 stacps , you knO'tl, 0I' i the n ota ry p ag es llh ere y ou w ou ld25 sta~ , do y o u re ca ll th e s i1n a tu re lin e specif ica l ly

63ea p loyer , W ho di d yo u th ink yo u w ere \lo rk in g f or?

11. Th e l a s t pe r s on?Q. lIell, di d the nane c ha ng e o ve r ti llie?

1234S

A .Q .

Y e s .Can you kind o f qiv e u s fron sta rt to

6 f in ish lin a t th e va rio us n am es lIere aga in?1 A . Okay . I was h ired in itia lly by un itedg Title o f N ev ad a wh{) were o v n e d by Chicaqo Title of9 nevada I Ih o a ft er I can e on m erg ed o r wa s bought , I d on 't10 knew exact ly ho w t ha t w ork ed , b y fidelity Nat ion a l11 F in an cia l. Th en when It ransferred to th e nex tH d iv is io n , a t th a t ti lle itw as C hicag o D efau lt Se rv ices13 IIhien l ia s u nd e r Chicago 'i 'itle , a nd t hen it h" en t to14 F id e lity Ha tio n a1 D efa u lt Serv ices wh o accord ing to ny15 ch eck s wa s u n d er F id e lity N a tio na l f in a n cia l. A n d th en16 we wen t to , tro a Fideli ty l Iat ional l l e f au1 t Se rv ice s w e17 l Ien t to F rs uhich was fidelity In fo rma t ion Services , an d18 [be liev e fro n frS is wh e n we wen t to L PS wh ich is L PS19 llan3ge


17/50

6 8

e1 d id th e p roce du re s ch an ge , d id th e w a y y ou d o bu sm ess2 ch an ge , d id yo u r supervi sor s c hange?3 A . In it ia l ly , yes , m y superv iso rs chan ge d a4 fel ' ! tlaes. the p ro ced ure , n oth in g ch an ged . I me a n likeS th e s ign a tu re lines o n th e d o cun en ts lik e th a t we were6 s ig n ing a s an ag en t fo ! a clie n t wo u ld chan ge , bu t o t h e r1 th an th a t th e re was no p ro ce du ra l ch an ge s.B Q . S O th is , the p rocess th at y ou d es cribe d of9 th e no ta ry s ign ing th e su pe rv iso r's n an e an d t hent o notariting it for the:l , t ha t W M pret t y &uch th e gene r a l

11 p ractice th rou g ho u t th e t in e yo u wo rk ed th e re ?12 A . lIe ll, t ro n 2002 to 200S when w e s to p pe d13 r ecording , yes .1 4 Q. Okay . A re you aware o f


18/50

7 0

Q . IS this th e .~ en t to coo p era te th a t y ou69

i2

TH E I lIitiE SS : T ha nk you .M R. K EL LEHER: A t th is t it;:e th e State lIouldsigned with o ur o ff ic e?

3 A . Y e s .4 MR. KELLEHER: And fo r the record I'd a l so5 at this t ine like th e re co rd to re fled th a t we 'v e6 attached as E~hibit 24 the aqreeren t to co o pe ra te fo r7 M~ghan Shaw wh o tes tified last week a nd Exh ibit 26 ,S Jo sep h N oe l, who will be t e s t i fy ing next ,

1H E fOREPERSOll: Addi t ional questions?By law, t he se prcceedinqs a re s ecre t an d11 y ou a re p ro hibite d Iron d isclo sln q to an y on e an y th ing12 t ha t has tra nsp ired be fore u s, In cl ud ln q evidence an d13 statezents present ed to th e Gra nd Jury , an y even t14 o ccu rring or s tatenen t rr.ade in th e p res en ce o f the Grand15 Jur}', an d infornat io n obtained by th e G ra nd Ju ry .16 F ai Iu re to conp ly with th is aW oo itio n is a1 1 g ro ss I!!is de :.ca no r p un is ha ble by a ye ar in the Cla rk18 Coun ty D eten tio n Cen te r an d a ~2, o a a fine . In ad d itio n ,19 , yo u nay be he ld in cont e l t p t of co urt pu n ish able by an20 add itio n al $500 fin e an d 25 day s in th e C la rk C ou nty21 D eten tio n Cen te r.2 2 IX > yo u under s t and th is a ds on it l on?

T H E W I TN E SS : Yes.THE FORE E R S O N : Iha nk you fo r yo u r

n2 425 te s tico n y . You are 8r .CUSed.

1 l1E I1ITlIESS: J-O-S-E-P-H is th e firs t,2 l as t nane is 1I-0-&-L.3 7 H E F O RE P E RS 0 1 { : T h a n k yo u .

P le as e p ro ce ed .5 JOSEPH NOEL ,6 h av ing been firs t du ly swam b y th e fo rep erson o f th e7 G ra nd Ju ry to test ify to the truth, the w ho le t ru th ,a a nd n ot hi ng but th e tru th , te s tified as f o l l ows~9

1Q1112 BY MR . KE LLEH ER :

EXA.'lIllA'l'IQ)l

3 lik e to call its n ex t witne ss , Jo s ep h N oe l.4 1HE f'OREPERSO:-l: Plea se reaa ln stan d in g .5 Please raise yo u r right hand .6 Yo u d o s ole mn ly s we ar th e t e s t in ony y ou ar e7 abo u t to g iv e u po n the in ve stiga tio n nOli p en d in g be fore8 th is Gran d Ju ry shal l be th e tru th , th e who le tru th , and9 n o th ing bu t the tru th , So help yo u God?10 1H~ !Il lNESS; So he lp !rceGod.11 ~HE FOREPERSOlI: p le ase be s ea ted .12 You are advised that you are here to d ay to13 qiv e tes tilr


19/50

14 1;31 Q. Is th a t a ls o In th e san e -- I2 11 . sene building. 2) Q . Ju s t d iffe ren t f lo o r? 34 A . L PS was Su ite 300-42 , f id e lity N ation a l 45 Title wa s Su ite 1M on th e first floor. 56 Q. To y ou r k now ledg e ~ e re th e y sep ara te 67 co; ; , panies1 78 A . Yes , th ey IIs re . 89 Q. lihat w e r e y o u hired to do? " ' 'hat lia s y ou r 910 job? 10

11 A. I+ l a s n ev er qiv en a job title , e v e r. W h a t 1112 I d id wa s ru n title, or proper ty prof i l es , p u l le d th e 1213 legal de s crip t io n o n the p rop e rty , ru n th e chain, pu l l ] 314 th e d e ed o f t ru s t th a t was in que s t io n , a n d th en th a t 's 1 4IS whe n t he c us to ae rs wou ld sen d th e d ocu zen ts e ith e r I S16 onl ine Or ove r el laH an d th a t's hOIl th e NOD s II Er e s e t 1611 u p , I'd n atch it to a proper ty profile by APII nunber an d 1718 address . 181 9 Q . W h o w a s y ou r s up erv is or? 1 920 A . M y supervisor w a s G arri S he pp ard . 2 02 1 Q . D id y ou ever nee t Gerd Sheppa r d 2 12 2 pe r sona l ly? 2 223 A . neve r . 232 4 Q. wou ld yo u be able to id en tify h e r? 2425 A. N o. 2 5

Q. D uring y o u r enp loy ;Jen t d id y o u ever act inth e cap aci ty o f a no ta ry p u blic?

A . l 't 'h a t do yo u nean ? Can y o u say th a t in ad iffe ren t way ? Id on 't u nd ers ta nd .

Q. liere y o u a no t a r y111. Ye s , I wa s . I becil."ie a no ta ry A p ril o f

2007.Q. A n d wa s th at so ne th in g yo u d id o n yo u r ow n

or -- A . N o, I d id no t. 7 h e coepany sen t ae downlIith a ch eck to pa y fo r th e n o ta ry s tanp. ' (W() week sl a t er 1 g < > t th e s tanp in th e n ail .

Q. ~ ha t ty p e -- d id y ou u o ta rl ze d ocu n en ts fo rL P S ?

A . On ly o ne ty pe o f d ocu n en ts , n o tice o rdef aul t s .

Q . h'hen y o u n o ta ri ze d docunenrs ~ 'O uld th eperson b e s ta n din g in fron t o f yo u ?

A . Every ti1l'e th e docuzent was s ig ned Je ss IeB ew ley s a t 3 f ee t fron ne , 7h e o n ly pe rs o n th a t I k n ews ig n in g m y d ocu r:en ts . !leb W atk in s ] be lie v e d id it acoup l e o f tiaea vhen B e wl ~y li as ou t s ick.

Q . !!ho is Jessie Bea l ey?A . H e wa s a s e a rch er wh o sa t in a no th e r d e sk

in th e sane o ff ice a s D e. The re was t llO o f u s th a t s a t

7 5

1 in o n e office an d th e n there was a d oo r and th en th e re2 wa s tw o o t h e r e :


20/50

78

1 to her.2 Q. SO yo u p e rso na l ly kn ew he was sig n ing ?3 A . Yes , I d id .4 Q . A re yo u auare o f a ny bo dy el se w ork in g t he re5 th at w as n ota rizin g docuaents in bla nk w ith ou t a6 s igna tu re?7 A. N ot t ha t I k n o w of.S Q. Can you te ll u s wh a t y o u r lIo d e rs ta nd jn q o f

19

24 You a re ad v is ed th a t y o u are h e re to da y to25 g iv e te s tim ony in the in v es tig a tio n p erta in in g to th e

9 th e p u rp o se o f a n o ta ry s lgn a tllre is?10 A . Yo be hone s t I d o n It e v e n knOll. I zea n I11 wa s h ire d in '01 , I was p ro v id ed , I wa s to ld to g o g e t a12 n o ta ry s ta rp . I was ju st trying to h o ld a joo fo r m y13 fani Iy,14 Q. D o yo u knOll what th e p urp os e o f an 1101)is ?15 A . 10 fo re clo se o n a ho u se , s ta rt th e p ro ce s s.16 Q. A nd th e d o cu x en ts th a t y o u lIe re n o ta rilin g ,17 l 'Ie re th ey reco rd ed in Cl a rk Coun ty ?IS A . Yes, th ey w ere .19 Q. Can you k in d o f d escribe th e process?20 A . ~h e p roces s is we 'd g e t -- th e 1 1 1 1 0 1 021 p ro ce s s?2 2 Q. with re sp ect to wh a t y o u \la re d o in9 .23 A . I wou ld p u ll th e N OD o ff th e sy s tea o r p u ll2 4 th e n o u t of emil, p rIn t the n to a printer, r w u l d t a k e25 th e p ro p erty pro file o r tit le rep o rt, wh a tev er y ou want

1 actu a lly th e co nf lrna t.io n wou ld g o to Ca lifo rn ia , th e2 o rig ina ls v o u ld g o to th e co u n ty .3 Q . would th e clien t g e t a co p y as \le ll?4 A. I believe t hey all had acces s to th e LPS5 sy a te a . So wha t th ey t.'Ou l< ! go a nd d o is p u n ch in th e ir6 o rd er n u nber a n d th ey ca n ch eck u n d er th e dccuzea t s1 reco rde d to s ea wha t d o cu a en ts we re u p lo ad ed an d that 'se h ow th ey kno s if th e ir d o cu n en ts a re record ed .9 Q . The L Pg is a ceep u te r sy s tem ?1 01112 'lh an k y o u .

Y e s , on line co n LPS . li e h a v e a log in .HR. K EL LEHSR: I h av e n o fu rth e r qu es tioo s .

1 to ca ll it, a nd n atc h it to the N OD . L ik e I sa id it2 \o, 'Ould be bo rr o v er+s n ame , APl1 , p ro pe rty a dd re ss , orde r3 nu. ' l .ber, al l t ha t would h a v e to za tch befo re it could4 record. Then I would s e nd it d own to th e cou n ty with a5 recorder. Sh e would t aK e not only ny documen t s of Geed6 She p p ard 's u n it, s h e wou ld ta k e Gary Tra ffo rd 's a n d1 1ra cy ' $ d o cu n sn ts a s we ll.S Q . D o yo u k no~ h a ll ren y d o cu lli~ nts p e r d a y were9 be ing recorded?10 A . !:ve ry da y was a d iff~ ren t d ay . It wou ld g o11 fro r!. 10 to 200 to 300 be twe en bo th o f ou r d eSK S. Th ere12 wa~ th a t na n y do cun e n ts reco rd in g a t o n e tim e.13 Q. D o yo u recall th e na n e o f th e clie n ts th a t14 yo u were s ig n in g d e cu n en ts fo r?15 A . 1h e only o n e s I be liev e I M ta rized fo r was16 Q ua lity L oan Cen te r, Ca lifo rn ia Re co n v ey an ce Co rp o ra tio n17 Or Co :tp an y , an d Ca l-W es te rn , Ex e cu tiv e an d a ll th e19 o th e r clien ts h ad th e ir d o cu ae n ts s e t u p rea d y to19 record . th ey sen t it to u s read y . A l1 r di d lias h a n d20 it to th e reco rd e r, r n e v er pu t ! " I . y f inger on it, 1 ju st21 h an d ed it o va r p re tty nuch ,n Q. A nd afte r th e d o cu ae n ts were reco rd e d were23 co p ie s o f th o se s en t ba ck to Gerri Sh e pp a rd ?2 4 A . ' there was ailiays a co n firn a tion co py an d an25 o riqin a l co p y , Th e o rig in a l co p y would g o bacl: to th e ,

1 D e te nt io n C en te r.2 D o y ou u nd ers ta nd th is ad llo nitio n?3 TIiE W I1 l1~SS: 'leSt I do.4 THE roRE~E.RSOtl: Thank yo u fo r y o ur5 testtacny, Yo u are e x cu se d .6 TH E WIll leSS: fh llnk yo u .

M R . K E LL EH ER : A t th is tiM th e Sta te ha sa t~ 'O re l'la in in g w itn es se s , h ov ev er d ue to s che du lin g9 co n flict nei ther COu ld be h ere u n til 1 o 'clo ck so li e10 wou ld ask to tak e a lu nch break un t i 1:00.11 lHE FOREPERSW : Okay . 1hank you.12 (Recess.)13 (At th is tin e , Ju r{)r D on a ld Ba iley exits

8 0

A .

13 ,H E fO REP ERSO N: Ju ro rs , do yo u h av e1 4 questions fo r th is w itn es s ?15 By law , th e se p ro ce ed in g s a re s ecre t an d16 you ar e p ro h iblted fra il d is clo sin g to an y o n e an y th in g17 th a t ha s t ransp f red before u s , in clu d in g ev id en ce an d18 s ta te aen ts p re s en ted to th e Gran d Ju ry , a n y e ve n t19 o ccu rrin g o r s ta tex en t f1ad~ in th e p re s en ce o f th e Gran d20 Ju ry , an d in fom a tio n obta in ed by th e G ran d Ju ry .21 F a ilu (e to co n p ly with th is a (l",o n ition is a22 g ro s s a isd eae an o r p u n ish able by a y ea r in th e Cla rk2 3 Coun ty D e ten tion Cen te r an d a $2,000 fin e . In a d d itio n ,24 yo u J , B Y be he ld in co n t eap t o f co u rt p un ish able by an25 ad d itio n a l ~ 500 fin e an d 25 days ill th e Clad: Coun t y

1 4 th e p ro ceed in g s an d is no lo n ge r p re s en t.]15 H R . KE R Il: State c a l ls Jo hn Sha ffe r.16 THE ro f \EP~RSW: P leas e ra is e y o u r rig h t"17 h an d .U '(ou do solennly swear th e te s tfrcn y yo u ala19 abo u t to g iv e u p o n th e in v es tig a tio n nOll p en din g b ef ore20 th is Gran d Ju ry sh a ll be th e tru th , th e who le tru th , an d21 n o th in g bu t th e truth, so he lp y o u G o d ?22 TIlE W ITNESS: I d o .

TH E roREPERSON: Pleas e b~ s ea ted .


21/50

e1 o ffen s e s o f n cta ri a a t lo n o f s ig n a tu re (If p e rs o n n o t in2 presence o f n ota ry pu blic, offering f als e In s tru ze n ts3 fo r f ilin g o r reco rd in q, an d fa ls e ce rt in ca tio n o n4 ce rt ain i ns tru a ea t, in vo lv in g G ary Tra ffo rd an d Getd

1 a ncho r a t N e il S T al k no , K D 'A N . I I.'a rk fo r B ea sle y2 Broadc a s t i n g .3 Q , W hat 's y ou r e du ca tio na l ba ck gro un d?4 A.] have a ba ch e lo r o f a rts degree Iroa P e n n5 State Univer s i t y ,6 Q. l ihere d o yo u l ive?7 A. 8708 Foggy Bay L a n e in La s Ve g a s , anli.S Q . D o yo u own or re nt th at p ro pe rty ?9 A.] Olll1 th at p ro pe rty .1Q Q. l Ihen e lid y ou p urch as e t h a t propsr ty ?11 A . In th e sU lm er o f 200B . June I bel ieve.12 Q . An d k h a t we re th e circun s ta nces o f th a t13 pu rcha se ?1 4 A .

;.

5 Sheppa r d .61a

D o yo u unde r s t a nd this adv i s e~ en t ?T H E W IT N " E S S : I d o .' [H E F O RE P 8R S ON : P le a s e s ta te you r f irs t

9 an d la s t n an e and s p e l l bo th fo r th e record ,TIlE:WITI IESS: John Shaffer . J-O-H-II,0

11 S-H-A-F-r-E-R.12 jHE r o R E P E R S O H : thank y o u .n P le as e p ro ce ed .1 4 JOHN S H A F F E R ,1~ h av in 9 bee n firs t d u ly sworn by th e ro rep e rs o n o f th e16 Gran d Jury to testify to th e tru th , th e whole t ru th ,t1 an d n o th in g bu t th e t ruth, te s t if ie d a s fo l low s :1819

J h ad re n ted fo r: th e f irs t two y ea rs th a t I15 liv ed he re an d when th e p !a rk e t s ta rte d to f a ll a p a rt a n d16 r r ea l ized I co uld a ctu ally a ff o rd to buy a hou s e in L as11 V ega s I d ecid ed it was th :e to s ta rt lo o k in g . So I18 found a re a l e s ta te ag en t th a t w a s re co rn e nd e d f roin s one19 f r iends o f nlne an d K e went o u t , I told hifl. r on l y20 wan ted to lo ok at foreclosed properties and after21 look ing at abou t 25 hou se s I set t l ed on th e one I2 2 bough t .23 Q. And wa s th a t in fa ct a fo rec lo s ed p ro pe rty ?

E X A M I N A T I O N2 021 BY M R . KER N :22 O .23 A.

G o o d a f t e r noon , H r. Shaffer.G o o d af t ernoon.C an you te ll u s how you a re e l lp lo y ed ?I'n th e p ro g ram d irecto r an d ! :< lm ing news

2 42S

Q .A.

242S

Yes.You d l dn 't k no ll th e p e r s on th at o sn ed th e

A .Q .

8 4

1 p ro pe rty be fo re yo u purchased it, di d you?2 A . r d id n o t ,3 Q. 0 0 y o u k n o w ",ho Y O u r l e n d e r I s ?

O ka y. A nd if y o u could p l e a s e turn to.2 bates nurber 1116, it's g o in g to be towards th e en d o r:3 th e ba ck o f th ose , or t ha t exhlbit , D o y o u r ec o gn iz e4 th a t d o cu ren t?t wa s !le w SO\lth F ed era l Sav i ng s Bank .

How zuch d id y o u pu r cha s e th e proper ty for1$232 ,000.A nd when you bouqh t th a t p rop e rty d id you

4561

A .Q.A .Q.

5618

Yes , I do .W h a t is it?It w a s th e s a le do cu aen t .

A.Q.A .Q. Ca n yo u re ad th e tit le o f th e docuaen t fo r:e x pe ct th at yo u h ad full owne r s h i p J: lghts to th e

9 p rop erty ?10 A .

gus?1011

It is th e G ra nt Bargain an d sa te De e d .A nd lo o);in 9 to th e to p le ft co rn e r o f th a t

Yes , I d id . A .Q .1 Q. Yo u didn't th in k th a t an y bo d y e ls e wou ld be

12 abl e to cone after yo u bo ug ht th at proper ty a nd a ss ert13 osnership righ ts to th e p roperty , d id you?14 A. N o .15 Q, SO it was you r be lie ! so long a s y ou1~ conpl ied with th e te rn s o f you r ![Q rtg ag e that y o u , ,; ou l d11 be a ble to h av e , th a t yo u o s n ed th e p ro p e rty ?IS A . Yes .19 Q . Okay . W ill you p le a se lo o k a t th e p a ck e t2Q In fro n t o f yo u . Th e re 's tab nu n be r 27 . S ta te 's21 E Kh ibit 27 . D o y ou re co gn ize th os e d oclL 'Ile nts ?

12 dccuesn t , d o you reco g n ize th e ad d re ss lis ted th e re ?13 A . Yes , I do .l~ Q. A nd who se ad d re s s is th a t?15 it, It is ra y address.1 6 Q. tlh a t is th a t a dd re ss ?

870a f0 99 Y B ay L ane , L a s V eg a s , N ev ad a ,7 A.18 89l17.19 Q . Ok ay . L o o k in g to th e v e ry to p le f t o f th a t20 co rn e r, d o y ou s e e an A P t! nusbe r lis te d th ere :

1\. Yes , I d o .12 2 Can you re a d th e n u.lJ.be r?

l63Q8612016 .2 223

Q .es .W ha t a re th ey ?

A.Q. 23

2425 file a s you reco g n ize it?

A .So does th is ex h ibit co np ris e yO \lr lo a n4 A . Th ey 're th e clo s ing do cu n en ts fro a when I

2 5 bough t m y h ou s e .Q .


22/50

8 S

Yes , it doe3~~~ 6b

1 A . I t h ough t tha tI d id,2 Q. A nd r'a 11o in9 to a sk yo u to tu rn to Exh ibit 2 Q. [ \; ) you k n o w w ha t ex clu sio ns a re in clu ded in3 ! /u lmer 22 a s well. Tha t 's in a d iffe te nt p ack et. H ave 3 you r title i nsurance?4 y ou s ee n th at d ocu m en t be fo re ? 4 A . Id o n ot.S A . It d o es no t lo ok faj ' l l l iar , no . S Q. D id any bo dy eve r ex pla in th at to y ou ?6 Q. II i 11 y o u p le a se , I be l i eve it's in th e tO F 6 A . No.7 le ft o f th a t d ccu ae nt , The re sho uld be a n liP/! nu aber o n 7 Q. D id y ou r re a lto r ev er te ll y ou "h a t it l iasa tha t as !,'ell. a for?9 A . There is, ye s . 9 A . N o .10 Q. Can yo u rea d th a t nunber for us p l e a s e ? 10 Q. In a g en era l s en se d id yo ur rea lto r ev er11 II. 16308612016, 11 te ll y ou wh at title In s ur a n ce l ia s f or?12 Q. O ld y ou purchase t it le in su ra nce wh en y ou 1 2 A . N ot o u ts id e o f it 's s o a e th inq yo u sho u ldn lx lu gh t th is h ou se ? II ha ve .14 A . Yes . 14 Q . A nd d id y ou re ad th ro ug h th e p olicy ?15 Q, Sorry. L et ;:e ta k e a co ne n t h ere . 15 A . Id id not .16 A n d we'd lik e th e re co rd to reflect tha t 16 Q. A re ye l l avare o f th e re be ing a ny probleas11 th e A P I ! nlli'lMrs o n b ot h E xh ib it s 2 2 a n d 2 7 na tch . 11 with re qm l to th e tit le to y ou r h on e?1S Go ing back to th e tit le in su ra nce , wha t w a s 16 A . I an no t aware o f a ny p roble n s , n o.19 y ou r u nd ers tan din g w ith re qa rd to wh at th e tit le 19 Q. Ar e y ou a ware o f an y p ro blea s with reg ard2 0 in su ra nce w ou ld a ctu ally co ve t? 2 0 to th e dccunea t s u s e d to fo re clo su re th e h o):(e ?2 1 A . My u nd ers ta nd in g o f title in su ran ce is th at 21 A . Ih av e be en re ad e a wa re th at th e s ig na tu re s2 2 if th e re I/Ou ld be a p roblem with th e tit le a f te r I 22 w ere fo rqe d o n th ose d ocu ne nts ,2 3 pu rch a se d th e hou se th a t th a t Ho uld co ve r n e in ca se 2 3 Q . A n d h OIl d id y o u ~C~M aware of tha t?2 4 a ny on e e ls e d e cid e d to co ce ba ck an d a ctu ally sa y th e y 24 A . Ico -h o s t a rad io show lIith a lo ca l re al25 ha d tit le to th e ho u s e o r 1 d id n't h av e tit le like I 25 es ta te a tto rn ey rris h a B la ck an d sh e sa id two "~ ek s ag o

8 7

1 we 're g in g to ta lk abou t fo reclo s ed p rop ertie s bu t f ro n2 th e p ro ble m o f p eo ple w ho p urch as ed th e p ro pertie s , n ot3 frO i!lth e Iss ue o f p eo ple IIh o a re be in g fo re clo se d o n,4 a nd 1 ju s t h a pp en ed to sa y o h , that's fu n ny , I bought a5 fo reclo s ed ho u s e . So sh e p u lled u p m y reco rd s o n th e6 cou n ty a ss e s s o r's w eb site an d sa id it lo ok s lik e y ou1 n ay ha ve a n iss u e , le t Ite lo o k fu rth e r in to , a nd la s t8 week b efo re th e show s he ca lle d an d s a id th e re is a9 p roblem with y ou r p a p e rso rk an d th a t 's IIh e n sh e10 exp la in e d to lie th at th e Sig na tu (e s a a tch sd s iqn atu re s11 o f p eo ple wh o we re u nd er an In ve st iqa t lo n.12 Q. h 'h a t d id yo u d o a f te r th a t?

1 qu es tio ns o f this wi tness?2 B Y A JUROR:J Q. Yes. Have yo u d iscu s s ed th is with th e4 tit le co zp en y th a t p rov id e d y ou with in su ra nce?5S

A , I h av e no t.[I() yo u p la n to ?.

1 A . I w ill ta lk to Tris h a B la ck "o re an d fin da o u t lih a t th e n e x t s te p I sh ou ld d o a s I'l l n o t su re wh a t9 to d o . 7h is k ind o f a ll bl in d s id e d Ita t~'"we ek s ag o s o10 I'll s till n o t qu ite s u re wha t is go in g o n with ny h ou s e11 a nd wh a t 1 n ee d to d o n ex t.12 TH~ FOREPERSON :A d d it io n a l q ue s ti on s ,L 3 juror s?14 By law , th es e p rocee d ing s a re s ecre t a nd15 yo u M e p (oM bited from d is clo sin g to a ny on e a ny th in g16 th a t h as tran sp ire d be fo re u s , in clu d in g e v id e nce a nd17 s ta tcae n ts p re s en te d to th e Gra nd Ju ry , an y e v e n t1 8 o ccu rrin g o r s ta te ze n t lI'.ad ein th e p res en ce o f th e Gra nd19 Ju ry , an d In fo rca t io n obta in e d by th e Gran d Ju ry .20 F a ilu re to con p ly w ith th is a dn on l tlo n is a21 g ro s s n is d e J:e aw t p un is h able by a y ea r in th e Cla rk22 Co un ty D eten tio n Cen te r an d a $2,000 f in e. In ad ditio n ,23 yo u nay be M id in co n tezp t o f cou rt punhhable by a n24 ad d itio n a l $500 fin e a nd 2) d ay s in th e Cla r~ . co un ty25 D ete ntio n Ce nte r,

13 A . Sh e a sk ed Ite if it was o ka y a t th a t p o in t14 s in ce I an a p riv a te citizen if n y d o cu n e nt s I o: ere t u rn e d15 ov er to th e A tto rn ey Gen era l 's Off ice fo r th e Gran d Ju ry16 in v e s tig a tio n an d I sa id th a t lia s fin e .n Q. D id yo u in fa ct tu rn th o s e do cu ae n ts o v e r?16 11. Yes .19 Q, H av e y ou e ve r ta lk ed Ilith ra ra lIe \Jbe ny ?2 0 A . N o t th a t I'n a lla re o f, n o .21 Q. D id yo u ha ve a te le pn on e co nfe ren ce in22 IIh ich Ta ta N ewberry lia s a ls o o n th e te lep ho ne ?23 A . Ye s . Yes , sir .2425

M R. K ERN : 'fh a t's a ll th e Sta te h as .~ HE F OR EP ER SO N;u ro rs , d o y ou h av e a ny


23/50

12J

eo yo u u n d ersta n d th is a dn o n i t i on?TH E IiI'f l lESS: 1 d o.TH E:fOR EP ER SON lh an k y ou fo r y ou r

8 9123

D o y ou u nd ersta nd th is a dv is ea en t?THE lurN ESS: I do,T H E r o: :U : P ER S O N : P le as e s ta te y o u r f irs t

--------------~~-.---~-~-----------------------------~

4 test lnony. Y o u a re e xcu se d.5 THE W ITNESS: Thank you .6 MR. KERN : A ll righ t. with your pera iss ion1 an d ou r apo log ie s , ne'd l ik e to tak e a brief reces s toa wait fo r o u r la st w itn es s to arr ive .s 'IHE FOREPERSON :Rece s s , jurors.10 [Recesa.]11 HS. L ESTER: 7 h e Sta te ca lls ra ra N ewberry .12 THE FOREPERSON: P lEas e re na in s tan din g.13 You do soleanly swear th e te s t iu o n y yo u ar e14 abou t to g iv e u p o n th e invest iga t ion nOl i pending before15 th is Grand Ju ry sh a ll be th e tru th , th e W ho le tru th , an d16 no thing bu t th e tru th , so h e lp yo u God?11 rHE IHl'N ESS: I d o .l a 1 '1 1 & F O R E ~ E R .S O H : P le as e be se a t ed .19 You a re a d v is ed th a t y o u a re he re to d ay to20 g iv e te st il:{)n y in th e im ' e s t iga t ion perta in ing to th e21 affe n s a s o f no ta riza tio n o f s ig n a tu re a f p e rso n n o t in12 p re sen ce o f no ta ry public, offering f al se i ns tr um e nt s23 fo r filing o r reco rd in g , an d fa ls e ce rtif ica tion o n24 certain instrunent, invo lv ing Gary Trafford a n d G err i2 5 Sheppard .

I an d what ty p e o f ca se s y o u handle?2 A . 1 'yp icaUy a cl ien t COle s in in f inancia l3 d is t re ss and /o r hav ing a p ro cle a w ith re qa rd s to a4 p en d in g fo reclo su re an d J will loo k a t th e ir fin an cia l5 scen a rio an d co ne u p w i til a p lan fo r e i the r a re so lu t ion~ th a t a llows them to k ee

Documents

Transcript Day 2