Preview
FILED: SUFFOLK COUNTY CLERK 01/26/2016 06:31 PM INDEX NO. 063193/2013
NYSCEF DOC. NO. 42 RECEIVED NYSCEF: 01/26/2016
EXHIBIT 2
1 1
2 SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF SUFFOLK
3 x
4 ALBERT PEREZ, individually
and derivatively on behalf of
5 TOTAL COMPUTER SOFTWARE, LLC,
6 Plaintiff,
7 v. Index No. 063193/2013
8 VINCENT TEDESCO,
TOTAL COMPUTER SYSTEMS, LTD.
9 d/b/a TOTAL COMPUTER GROUP,
TOTAL COMPUTER GROUP, LLC,
10 TOTAL COMPUTERS, LTD. And
JOHN DOE CORPORATION,
11
Defendants.
12 x
TOTAL COMPUTER SOFTWARE, LLC,
13
Third Party Plaintiff,
14
v.
15
ALBERT PEREZ,
16
Third Party Defendant.
17 x
September 25, 2015
18 10:00 a.m
19
20 Deposition of ALBERT PEREZ, taken by
21 defendants, at the offices of Alston & Bird,
22 90 Park Avenue, New York, New York, before
23 Brandon Rainoff, a Federal Certified
24 Realtime Reporter and Notary Public of the
25 State of New York.
PIROZZI & HILLMAN
212-213-5858
1 2
2 APPEARANCES:
3
4 MICHAEL F. SCHWARTZ, ESQ.
5 Attorney for Plaintiff
6 40 Fulton Street, 7th Floor
7 New York, NY 10038
8 212.964.1500
9 MFS@MichaelFSchwartzLaw.com
10
11 ALSTON & BIRD LLP
12 Attorneys for Defendant and Third-Party
13 Plaintiff
14 90 Park Avenue
15 New York, NY 10016
16 212.210.9400
17 BY: MICHAEL E. JOHNSON
18 michael.johnson@alston.com
19 JESSICA L. SUPERNAW
20 jessica.supernaw@alston.com
21
22 PRESENT:
23 VINCENT TEDESCO (Telephonically)
24 MATTHEW MAIORANO, Videographer
25
PIROZZI & HILLMAN
212-213-5858
1 Perez 36
2 Q. Subsequent to signing this
3 document, have you located any documents
4 responsive to request number two?
5 A. I don't know because there are so
6 many documents, so many thousands of pages.
7 Q. Subsequent to signing this
8 document which was July 22, 2015, have you
9 collected additional documents in
10 connection with this litigation?
11 A. Yes.
12 Q. Have you turned any of those
13 documents over to your counsel?
14 A. I don't know if I did in terms of
15 date, like July 22, I don't know if I
16 turned over any additional documents after
17 the production.
18 MR. JOHNSON: The defendants call
19 for the production of any responsive
20 documents that have been located since
21 service of the response to the request
22 for production.
23 Q. One of the subjects of request
24 number two, Mr. Perez, is capital
25 contributions.
PIROZZI & HILLMAN
212-213-5858
1 Perez 45
2 A. I don't even know specifically or
3 exactly what she did other than she was --
4 was involved with following Mr. Tedesco's
5 instructions.
6 Q. Mr. Cassano after 2005 also
7 continued to do work for TCS, correct?
8 A. He did.
9 Q. In terms of the capital
10 contributions that you made to Total
11 Computer Software, TCS, that we have been
12 discussing, do you have any documents that
13 memorialize those contributions?
14 A. Yes.
15 Q. Have you turned those documents
16 over to your counsel?
17 A. Yes.
18 Q. Let's go back to Exhibit 1,
19 please. I want to look still at page 4.
20 You'll see that request No. 5
21 pertains to all loans of resources,
22 personnel and equipment purportedly made to
23 Software by LAN Pro.
24 Do you see that?
25 A. Yes.
PIROZZI & HILLMAN
212-213-5858
1 Perez 46
2 Q. And then in the response after
3 the objection it states: Plaintiff has not
4 as yet found documents in response thereto.
5 Do you see that?
6 A. Yes.
7 Q. That was an accurate statement
8 when you signed this in July, correct?
9 A. Yes.
10 Q. Have you subsequently found any
11 documents that are responsive to
12 defendant's request No. 5?
13 A. I'm not sure. I may have.
14 MR. JOHNSON: To the extent that
15 there are additional documents
16 responsive to this request, we call for
17 their production.
18 A. I may have, I'm not sure if I
19 found more documents because I spent so
20 much time reviewing documents, I can't
21 remember if I found more.
22 Q. Do you have any documents -- are
23 you aware of the existence of any documents
24 that support your contention that loans
25 were made by you to TCS?
PIROZZI & HILLMAN
212-213-5858
1 Perez 47
2 A. Yes.
3 Q. What documents are those?
4 A. There would be records of -- that
5 Mr. Wittich, Mark Wittich maintained in the
6 early years of Total Computer Software.
7 Q. What records are those?
8 A. There would be a spreadsheet, and
9 I would have to look, but it would be
10 things along that line that he recorded in
11 terms of costs and expenses.
12 Q. Do you have copies of those
13 spreadsheets?
14 A. Yes.
15 MR. JOHNSON: We would call for
16 the production of those spreadsheets.
17 THE WITNESS: They were produced,
18 Mike.
19 BY MR. JOHNSON:
20 Q. Besides those spreadsheets that
21 Mr. Wittich maintained, are you aware of
22 any other documents that support your
23 contention that loans were made to TCS?
24 A. I have technological things that
25 point to it. For example, e-mails and
PIROZZI & HILLMAN
212-213-5858
1 Perez 48
2 e-mail addresses that show that the -- that
3 the -- those Software employees were
4 actually operating on LAN Pro
5 infrastructure. I have e-mails that
6 indicate that the Software product was
7 actually created on LAN Pro infrastructure,
8 e-mails that point to that, indicate that.
9 Things that were done.
10 MR. JOHNSON: To the extent those
11 have not been produced, we call for
12 their production.
13 Q. Any other documents you are aware
14 of that support the allegation that loans
15 were made to TCS?
16 A. Not that I can state right now
17 considering the volume.
18 (DX Exhibit 2, 30-page Amended
19 Verified Complaint, bearing no Bates
20 stamps, marked for identification)
21 BY MR. JOHNSON:
22 Q. Mr. Perez, the reporter has
23 handed you a document that we have marked
24 as Defendant's Exhibit 2.
25 Do you recognize this to be a
PIROZZI & HILLMAN
212-213-5858
1 Perez 52
2 at this here now how that was derived.
3 Q. Did you personally derive that
4 number?
5 A. No, there was assistance with --
6 with people doing analysis.
7 Q. What people?
8 A. Attorneys, probably, looking at
9 spreadsheets and/or numbers that I put
10 together in terms of cost or loss.
11 Q. But sitting here today, you
12 personally don't remember what makes up
13 that $750,000 number other than the
14 approximately $500,000 in wages that's
15 reflected on the previous page, is that
16 correct?
17 A. Yes, at a line item basis I just
18 don't recall because of -- this was
19 probably done about a year and a half ago,
20 two years ago.
21 Q. Are you aware of any documents
22 that would reveal how that $750,000 figure
23 was calculated?
24 A. At this time I don't remember
25 exactly, but looking I would probably be
PIROZZI & HILLMAN
212-213-5858
1 Perez 53
2 able to find those documents.
3 MR. JOHNSON: To the extent there
4 are any non-privileged documents that
5 reflect the calculation of that
6 $750,000 figure, we call for their
7 production.
8 Q. Let's go back, please, to Exhibit
9 1, and I want to move ahead to pages 5 and
10 6.
11 There is a request numbered 11
12 which calls for the production of documents
13 concerning the purported assurances Tedesco
14 provided you that over $1.5 million in
15 alleged debt would be repaid to you.
16 Do you see that?
17 A. Yes.
18 Q. Following an objection, you
19 stated: Plaintiff has not as yet found
20 documents in response thereto.
21 Do you see that?
22 A. Yes.
23 Q. That was an accurate statement
24 when it was made in July of 2015, correct?
25 A. Yes.
PIROZZI & HILLMAN
212-213-5858
1 Perez 54
2 Q. Have you subsequently identified
3 any documents that support the allegation
4 that Tedesco provided you an assurance that
5 you would be paid over $1.5 million in
6 alleged debt?
7 A. Yes.
8 Q. What document or documents is or
9 are those?
10 A. There were e-mails, and there was
11 even a reported conversation.
12 Q. Have you turned over copies of
13 those e-mails and that recorded
14 conversation to your counsel?
15 A. Yes.
16 MR. JOHNSON: To the extent that
17 any of those documents have not yet
18 been produced, we call for their
19 production.
20 Q. When was there a recording made
21 of a conversation concerning an assurance
22 made by Mr. Tedesco to you?
23 A. It was probably September or
24 October. Perhaps September, 2012.
25 Q. Who made that recording?
PIROZZI & HILLMAN
212-213-5858
1 Perez 59
2 Q. And is that the e-mail that is
3 referenced in paragraph 28?
4 A. I believe it is. Oh, actually, I
5 actually don't recall if it was that
6 e-mail. I don't recall.
7 Q. Do you believe that it was in an
8 e-mail that you gave Mr. Tedesco a
9 breakdown of the approximately $1.6 million
10 that -- in debt that you claimed was owed
11 to you?
12 A. Yes.
13 Q. Do you remember approximately
14 when you sent that e-mail?
15 A. I don't remember exactly when.
16 Q. Have you turned a copy of that
17 e-mail over to your counsel?
18 A. Yes.
19 MR. JOHNSON: We would call for
20 production of the e-mail containing a
21 breakdown of the $1.6 million.
22 MR. SCHWARTZ: Can we take a
23 break?
MR. JOHNSON: Yes, now is a good
25 time for a break.
PIROZZI & HILLMAN
212-213-5858
1 Perez 72
2 A. Yes.
3 Q. The Freedom of Information Act
4 request that you sent, did they reveal
5 anything about the check that had been paid
6 to Alan Pugh?
7 A. No.
8 Q. Did those requests have anything
9 at all to do with Alan Pugh?
10 A. A second series of requests did
11 request information in regards to what type
12 of business they did with those businesses.
13 Q. Did information that came back in
14 response to those requests reveal anything
15 about the nature of that business that was
16 performed?
17 A. It's not come back yet.
18 MR. JOHNSON: We call for the
19 production of any documents that were
20 received in response to any Freedom of
21 Information Act requests.
22 We also request copies of that
23 Freedom of Information request or all
24 Freedom of Information requests that
25 pertain to this litigation, and we'll
PIROZZI & HILLMAN
212-213-5858
1 Perez 73
2 need to go back and look at the
3 correspondence, but I believe that
4 predecessor counsel for Mr. Perez
5 assured us that there would be no more
6 Freedom of Information Act requests
7 sent out in connection with customers
8 of TCS or any of the defendants.
9 And we will need to address that
10 if there has been a breach of an
11 undertaking that was made on behalf of
12 Mr. Perez.
13 Q. You also stated earlier that it's
14 your belief that consulting agreements
15 about which you have no knowledge support
16 your allegation that there has been a
17 breach of fiduciary duty.
18 What is the basis for that
19 position?
20 A. Mr. Tedesco hired police
21 officials under a consulting agreement
22 without my knowledge, paid them quite high
23 fees, and it made no sense to me as they
24 didn't have any technological background,
25 software or any software systems
PIROZZI & HILLMAN
212-213-5858
1 Perez 147
2 Pennsylvania, and there were parties that
3 were -- that received a target letter, and
4 these parties came in to discuss with Mr.
5 Tedesco that they were targets of a federal
6 investigation regarding Lucerne County.
7 And in that process Mr. Tedesco began to
8 panic, and I wasn't even sure why, and he
9 wanted to delete e-mails and e-mail
10 archives.
11 And in that process I said to
12 him: Don't delete that, I said, that
13 information can exonerate you, let's make
14 sure that we back that up.
15 And on his computer I connected
16 an external hard drive and backed up these
17 e-mail archives and said to him: If you
18 didn't do anything wrong, this stuff can
19 help you.
20 Q. So you connected a flash drive to
21 his computer?
22 A. External hard drive, conceptually
23 similar.
24 4- And you did that with his
25 permission?
PIROZZI & HILLMAN
212-213-5858
1 Perez 148
2 A. And his presence.
3 Q. When did you do this?
4 A. I don't recall the date, but it
5 was about the time that that federal
6 investigation spread to these -- this party
7 I am talking about.
8 Q. What did you do then with that
9 hard drive after you downloaded the
10 information from Mr. Tedesco --
11 A. I just put it away.
12 Q. Where did you put it away?
13 A. It was on my desk for years.
14 Q. When you left TCS, did you take
15 that with you?
16 A. Yes.
17 Q. Did you ask anyone for permission
18 to take that with you?
19 A. No.
20 Q. Did you disclose to anyone that
21 you were taking that hard drive with Mr.
22 Tedesco's data on it?
23 A. I didn't have to, the property
24 was mine.
25 Q. Was the data on that hard drive
PIROZZI & HILLMAN
212-213-5858
1 Perez 149
2 yours?
3 A. I believe so. Company data.
4 Q. What's the basis for your belief
5 that you were entitled to take with you,
6 when you left, TCS company data?
7 MR. SCHWARTZ: Note my objection.
8 The witness can answer if he can.
9 A. I actually didn't intentionally
10 take that data at all because I was --
11 actually forgot that it was there because
12 it had been put on there so many years ago.
13 But I had my pictures on it and, sadly, I
14 could not even afford my own personal
15 computer at home for these years and I kept
16 all expenses to a minimum.
17 And that being said, I just
18 collected the hardware and brought it home.
19 I completely forgot that that material was
20 even on there.
21 Q. When you downloaded the
22 information from Mr. Tedesco's computer,
23 did you include all of the data that was on
24 that computer?
25 A. No.
Preview
FILED: SUFFOLK COUNTY CLERK 01/26/2016 06:31 PM INDEX NO. 063193/2013 NYSCEF DOC. NO. 42 RECEIVED NYSCEF: 01/26/2016 EXHIBIT 2 1 1 2 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF SUFFOLK 3 x 4 ALBERT PEREZ, individually and derivatively on behalf of 5 TOTAL COMPUTER SOFTWARE, LLC, 6 Plaintiff, 7 v. Index No. 063193/2013 8 VINCENT TEDESCO, TOTAL COMPUTER SYSTEMS, LTD. 9 d/b/a TOTAL COMPUTER GROUP, TOTAL COMPUTER GROUP, LLC, 10 TOTAL COMPUTERS, LTD. And JOHN DOE CORPORATION, 11 Defendants. 12 x TOTAL COMPUTER SOFTWARE, LLC, 13 Third Party Plaintiff, 14 v. 15 ALBERT PEREZ, 16 Third Party Defendant. 17 x September 25, 2015 18 10:00 a.m 19 20 Deposition of ALBERT PEREZ, taken by 21 defendants, at the offices of Alston & Bird, 22 90 Park Avenue, New York, New York, before 23 Brandon Rainoff, a Federal Certified 24 Realtime Reporter and Notary Public of the 25 State of New York. PIROZZI & HILLMAN 212-213-5858 1 2 2 APPEARANCES: 3 4 MICHAEL F. SCHWARTZ, ESQ. 5 Attorney for Plaintiff 6 40 Fulton Street, 7th Floor 7 New York, NY 10038 8 212.964.1500 9 MFS@MichaelFSchwartzLaw.com 10 11 ALSTON & BIRD LLP 12 Attorneys for Defendant and Third-Party 13 Plaintiff 14 90 Park Avenue 15 New York, NY 10016 16 212.210.9400 17 BY: MICHAEL E. JOHNSON 18 michael.johnson@alston.com 19 JESSICA L. SUPERNAW 20 jessica.supernaw@alston.com 21 22 PRESENT: 23 VINCENT TEDESCO (Telephonically) 24 MATTHEW MAIORANO, Videographer 25 PIROZZI & HILLMAN 212-213-5858 1 Perez 36 2 Q. Subsequent to signing this 3 document, have you located any documents 4 responsive to request number two? 5 A. I don't know because there are so 6 many documents, so many thousands of pages. 7 Q. Subsequent to signing this 8 document which was July 22, 2015, have you 9 collected additional documents in 10 connection with this litigation? 11 A. Yes. 12 Q. Have you turned any of those 13 documents over to your counsel? 14 A. I don't know if I did in terms of 15 date, like July 22, I don't know if I 16 turned over any additional documents after 17 the production. 18 MR. JOHNSON: The defendants call 19 for the production of any responsive 20 documents that have been located since 21 service of the response to the request 22 for production. 23 Q. One of the subjects of request 24 number two, Mr. Perez, is capital 25 contributions. PIROZZI & HILLMAN 212-213-5858 1 Perez 45 2 A. I don't even know specifically or 3 exactly what she did other than she was -- 4 was involved with following Mr. Tedesco's 5 instructions. 6 Q. Mr. Cassano after 2005 also 7 continued to do work for TCS, correct? 8 A. He did. 9 Q. In terms of the capital 10 contributions that you made to Total 11 Computer Software, TCS, that we have been 12 discussing, do you have any documents that 13 memorialize those contributions? 14 A. Yes. 15 Q. Have you turned those documents 16 over to your counsel? 17 A. Yes. 18 Q. Let's go back to Exhibit 1, 19 please. I want to look still at page 4. 20 You'll see that request No. 5 21 pertains to all loans of resources, 22 personnel and equipment purportedly made to 23 Software by LAN Pro. 24 Do you see that? 25 A. Yes. PIROZZI & HILLMAN 212-213-5858 1 Perez 46 2 Q. And then in the response after 3 the objection it states: Plaintiff has not 4 as yet found documents in response thereto. 5 Do you see that? 6 A. Yes. 7 Q. That was an accurate statement 8 when you signed this in July, correct? 9 A. Yes. 10 Q. Have you subsequently found any 11 documents that are responsive to 12 defendant's request No. 5? 13 A. I'm not sure. I may have. 14 MR. JOHNSON: To the extent that 15 there are additional documents 16 responsive to this request, we call for 17 their production. 18 A. I may have, I'm not sure if I 19 found more documents because I spent so 20 much time reviewing documents, I can't 21 remember if I found more. 22 Q. Do you have any documents -- are 23 you aware of the existence of any documents 24 that support your contention that loans 25 were made by you to TCS? PIROZZI & HILLMAN 212-213-5858 1 Perez 47 2 A. Yes. 3 Q. What documents are those? 4 A. There would be records of -- that 5 Mr. Wittich, Mark Wittich maintained in the 6 early years of Total Computer Software. 7 Q. What records are those? 8 A. There would be a spreadsheet, and 9 I would have to look, but it would be 10 things along that line that he recorded in 11 terms of costs and expenses. 12 Q. Do you have copies of those 13 spreadsheets? 14 A. Yes. 15 MR. JOHNSON: We would call for 16 the production of those spreadsheets. 17 THE WITNESS: They were produced, 18 Mike. 19 BY MR. JOHNSON: 20 Q. Besides those spreadsheets that 21 Mr. Wittich maintained, are you aware of 22 any other documents that support your 23 contention that loans were made to TCS? 24 A. I have technological things that 25 point to it. For example, e-mails and PIROZZI & HILLMAN 212-213-5858 1 Perez 48 2 e-mail addresses that show that the -- that 3 the -- those Software employees were 4 actually operating on LAN Pro 5 infrastructure. I have e-mails that 6 indicate that the Software product was 7 actually created on LAN Pro infrastructure, 8 e-mails that point to that, indicate that. 9 Things that were done. 10 MR. JOHNSON: To the extent those 11 have not been produced, we call for 12 their production. 13 Q. Any other documents you are aware 14 of that support the allegation that loans 15 were made to TCS? 16 A. Not that I can state right now 17 considering the volume. 18 (DX Exhibit 2, 30-page Amended 19 Verified Complaint, bearing no Bates 20 stamps, marked for identification) 21 BY MR. JOHNSON: 22 Q. Mr. Perez, the reporter has 23 handed you a document that we have marked 24 as Defendant's Exhibit 2. 25 Do you recognize this to be a PIROZZI & HILLMAN 212-213-5858 1 Perez 52 2 at this here now how that was derived. 3 Q. Did you personally derive that 4 number? 5 A. No, there was assistance with -- 6 with people doing analysis. 7 Q. What people? 8 A. Attorneys, probably, looking at 9 spreadsheets and/or numbers that I put 10 together in terms of cost or loss. 11 Q. But sitting here today, you 12 personally don't remember what makes up 13 that $750,000 number other than the 14 approximately $500,000 in wages that's 15 reflected on the previous page, is that 16 correct? 17 A. Yes, at a line item basis I just 18 don't recall because of -- this was 19 probably done about a year and a half ago, 20 two years ago. 21 Q. Are you aware of any documents 22 that would reveal how that $750,000 figure 23 was calculated? 24 A. At this time I don't remember 25 exactly, but looking I would probably be PIROZZI & HILLMAN 212-213-5858 1 Perez 53 2 able to find those documents. 3 MR. JOHNSON: To the extent there 4 are any non-privileged documents that 5 reflect the calculation of that 6 $750,000 figure, we call for their 7 production. 8 Q. Let's go back, please, to Exhibit 9 1, and I want to move ahead to pages 5 and 10 6. 11 There is a request numbered 11 12 which calls for the production of documents 13 concerning the purported assurances Tedesco 14 provided you that over $1.5 million in 15 alleged debt would be repaid to you. 16 Do you see that? 17 A. Yes. 18 Q. Following an objection, you 19 stated: Plaintiff has not as yet found 20 documents in response thereto. 21 Do you see that? 22 A. Yes. 23 Q. That was an accurate statement 24 when it was made in July of 2015, correct? 25 A. Yes. PIROZZI & HILLMAN 212-213-5858 1 Perez 54 2 Q. Have you subsequently identified 3 any documents that support the allegation 4 that Tedesco provided you an assurance that 5 you would be paid over $1.5 million in 6 alleged debt? 7 A. Yes. 8 Q. What document or documents is or 9 are those? 10 A. There were e-mails, and there was 11 even a reported conversation. 12 Q. Have you turned over copies of 13 those e-mails and that recorded 14 conversation to your counsel? 15 A. Yes. 16 MR. JOHNSON: To the extent that 17 any of those documents have not yet 18 been produced, we call for their 19 production. 20 Q. When was there a recording made 21 of a conversation concerning an assurance 22 made by Mr. Tedesco to you? 23 A. It was probably September or 24 October. Perhaps September, 2012. 25 Q. Who made that recording? PIROZZI & HILLMAN 212-213-5858 1 Perez 59 2 Q. And is that the e-mail that is 3 referenced in paragraph 28? 4 A. I believe it is. Oh, actually, I 5 actually don't recall if it was that 6 e-mail. I don't recall. 7 Q. Do you believe that it was in an 8 e-mail that you gave Mr. Tedesco a 9 breakdown of the approximately $1.6 million 10 that -- in debt that you claimed was owed 11 to you? 12 A. Yes. 13 Q. Do you remember approximately 14 when you sent that e-mail? 15 A. I don't remember exactly when. 16 Q. Have you turned a copy of that 17 e-mail over to your counsel? 18 A. Yes. 19 MR. JOHNSON: We would call for 20 production of the e-mail containing a 21 breakdown of the $1.6 million. 22 MR. SCHWARTZ: Can we take a 23 break? MR. JOHNSON: Yes, now is a good 25 time for a break. PIROZZI & HILLMAN 212-213-5858 1 Perez 72 2 A. Yes. 3 Q. The Freedom of Information Act 4 request that you sent, did they reveal 5 anything about the check that had been paid 6 to Alan Pugh? 7 A. No. 8 Q. Did those requests have anything 9 at all to do with Alan Pugh? 10 A. A second series of requests did 11 request information in regards to what type 12 of business they did with those businesses. 13 Q. Did information that came back in 14 response to those requests reveal anything 15 about the nature of that business that was 16 performed? 17 A. It's not come back yet. 18 MR. JOHNSON: We call for the 19 production of any documents that were 20 received in response to any Freedom of 21 Information Act requests. 22 We also request copies of that 23 Freedom of Information request or all 24 Freedom of Information requests that 25 pertain to this litigation, and we'll PIROZZI & HILLMAN 212-213-5858 1 Perez 73 2 need to go back and look at the 3 correspondence, but I believe that 4 predecessor counsel for Mr. Perez 5 assured us that there would be no more 6 Freedom of Information Act requests 7 sent out in connection with customers 8 of TCS or any of the defendants. 9 And we will need to address that 10 if there has been a breach of an 11 undertaking that was made on behalf of 12 Mr. Perez. 13 Q. You also stated earlier that it's 14 your belief that consulting agreements 15 about which you have no knowledge support 16 your allegation that there has been a 17 breach of fiduciary duty. 18 What is the basis for that 19 position? 20 A. Mr. Tedesco hired police 21 officials under a consulting agreement 22 without my knowledge, paid them quite high 23 fees, and it made no sense to me as they 24 didn't have any technological background, 25 software or any software systems PIROZZI & HILLMAN 212-213-5858 1 Perez 147 2 Pennsylvania, and there were parties that 3 were -- that received a target letter, and 4 these parties came in to discuss with Mr. 5 Tedesco that they were targets of a federal 6 investigation regarding Lucerne County. 7 And in that process Mr. Tedesco began to 8 panic, and I wasn't even sure why, and he 9 wanted to delete e-mails and e-mail 10 archives. 11 And in that process I said to 12 him: Don't delete that, I said, that 13 information can exonerate you, let's make 14 sure that we back that up. 15 And on his computer I connected 16 an external hard drive and backed up these 17 e-mail archives and said to him: If you 18 didn't do anything wrong, this stuff can 19 help you. 20 Q. So you connected a flash drive to 21 his computer? 22 A. External hard drive, conceptually 23 similar. 24 4- And you did that with his 25 permission? PIROZZI & HILLMAN 212-213-5858 1 Perez 148 2 A. And his presence. 3 Q. When did you do this? 4 A. I don't recall the date, but it 5 was about the time that that federal 6 investigation spread to these -- this party 7 I am talking about. 8 Q. What did you do then with that 9 hard drive after you downloaded the 10 information from Mr. Tedesco -- 11 A. I just put it away. 12 Q. Where did you put it away? 13 A. It was on my desk for years. 14 Q. When you left TCS, did you take 15 that with you? 16 A. Yes. 17 Q. Did you ask anyone for permission 18 to take that with you? 19 A. No. 20 Q. Did you disclose to anyone that 21 you were taking that hard drive with Mr. 22 Tedesco's data on it? 23 A. I didn't have to, the property 24 was mine. 25 Q. Was the data on that hard drive PIROZZI & HILLMAN 212-213-5858 1 Perez 149 2 yours? 3 A. I believe so. Company data. 4 Q. What's the basis for your belief 5 that you were entitled to take with you, 6 when you left, TCS company data? 7 MR. SCHWARTZ: Note my objection. 8 The witness can answer if he can. 9 A. I actually didn't intentionally 10 take that data at all because I was -- 11 actually forgot that it was there because 12 it had been put on there so many years ago. 13 But I had my pictures on it and, sadly, I 14 could not even afford my own personal 15 computer at home for these years and I kept 16 all expenses to a minimum. 17 And that being said, I just 18 collected the hardware and brought it home. 19 I completely forgot that that material was 20 even on there. 21 Q. When you downloaded the 22 information from Mr. Tedesco's computer, 23 did you include all of the data that was on 24 that computer? 25 A. No.