6.James Loperfido — Direct (Part 1)
452 linesMR. LESKO: The Government calls James Loperfido.
(The witness enters the courtroom and takes the stand.)
COURT CLERK: Sir, please raise your right hand.
Do you solemnly swear the testimony you shall give to the Court will be the truth, the whole truth, and nothing but the truth, so help you God?
JAMES LOPERFIDO: Yes.
(Witness sworn.)
COURT CLERK: Please have a seat, and please state and spell your full name for the record.
JAMES LOPERFIDO: James Loperfido, L-O-P-E-R-F-I-D-O.
THE COURT: All right, you may inquire.
MR. LESKO: Thank you, Your Honor.
(Continued on the following page.)
J A M E S L O P E R F I D O , called as a witness by the Government, having been first duly sworn/affirmed by the Courtroom Deputy, was examined and testified under oath as follows:
DIRECT EXAMINATION BY MR. LESKO:
MR. LESKO: Good afternoon, Mr. Loperfido.
JAMES LOPERFIDO: Good afternoon.
MR. LESKO: It's late on a Friday, so I am going to try to move quickly. If I go too fast, slow me down. It's your testimony, okay?
JAMES LOPERFIDO: (No response.)
MR. LESKO: Where do you live, sir?
JAMES LOPERFIDO: I live in Auburn, New York.
MR. LESKO: And what's your profession?
JAMES LOPERFIDO: I'm a business consultant.
MR. LESKO: How long -- do you prepare taxes?
JAMES LOPERFIDO: Yes.
MR. LESKO: Okay. How long have you been a business consultant and a tax preparer?
JAMES LOPERFIDO: Since the early '80s.
MR. LESKO: I'd like to draw your attention to late, approximately late 2004 or early 2005.
At that time were you introduced to a company named NXIVM?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: Who introduced you?
JAMES LOPERFIDO: Joe O'Hara.
MR. LESKO: Who was Joe O'Hara?
JAMES LOPERFIDO: He was a client that I had.
MR. LESKO: And what business was Mr. O'Hara in?
JAMES LOPERFIDO: He was an attorney.
MR. LESKO: Did he work with NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: In a attorney capacity or in a --
JAMES LOPERFIDO: I believe as a consulting capacity.
MR. LESKO: Who did you initially meet with at NXIVM?
JAMES LOPERFIDO: I met with Kathy Russell and Nancy Salzman.
MR. LESKO: Who was Nancy Salzman?
JAMES LOPERFIDO: Nancy Salzman ran the day-to-day company.
MR. LESKO: And who was Kathy Russell?
JAMES LOPERFIDO: She was in charge of accounting.
MR. LESKO: And did you begin to work for NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: And what was the nature of the work that you performed for NXIVM?
JAMES LOPERFIDO: I did a lot of basic business consulting work, looking at business structures, helping them organize some corporations that they wanted to -- that they wanted to start. I did tax work for them and accounting work.
MR. LESKO: Did you work for NXIVM from approximately late 2004 to approximately late 2006?
JAMES LOPERFIDO: I believe so, yes.
MR. LESKO: Did you have a written contract with NXIVM?
MR. LESKO: So how did the relationship -- how was it finalized?
JAMES LOPERFIDO: I was billed hourly -- I -- I billed them hourly for work that I performed for them.
MR. LESKO: Did you have to meet with anybody before you were hired?
JAMES LOPERFIDO: Yes, I met with Nancy Salzman and Kathy Russell.
MR. LESKO: So you were interviewed?
JAMES LOPERFIDO: Yes.
MR. LESKO: And would you consider this relationship sort of a handshake relationship with NXIVM?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: And what was NXIVM?
JAMES LOPERFIDO: It was a self-help company.
MR. LESKO: Was it --
JAMES LOPERFIDO: Among -- among other -- among other things. It owned property. It -- it owned different companies. They -- what they would do is as they were building, as they were growing their company -- their base operation, they would form new corporations to -- for -- for things like a rec center that they had that sold food and things like that and an exercise center and the like.
MR. LESKO: So was it fair to say NXIVM was sort of like an umbrella organization?
JAMES LOPERFIDO: Seemed so.
MR. LESKO: And there were a number of related entities to NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: And did you work for NXIVM, itself?
JAMES LOPERFIDO: Yes.
MR. LESKO: And did you work for some of these other related companies?
JAMES LOPERFIDO: Well, I billed -- I billed everything to NXIVM, but, yes, I guess so, I did that.
MR. LESKO: Did NXIVM during the time period you worked with the company, did it create a number of companies?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did you have an understanding as to why these companies were created?
JAMES LOPERFIDO: My understanding mostly was that they -- they were for basic litigious reasons. You know, you protect -- you break up your company, protect it from -- from lawsuits and to take advantage of tax circumstances if they arose.
MR. LESKO: Had you ever worked with a company that created so many related companies in your career?
JAMES LOPERFIDO: No, sir.
MR. LESKO: Are you familiar with an entity named First Principles?
JAMES LOPERFIDO: Yes.
MR. LESKO: What was First Principles?
JAMES LOPERFIDO: I believe First Principles held the Rational Inquiry license -- no actually -- yes, I believe so.
MR. LESKO: And what was Rational Inquiry?
JAMES LOPERFIDO: Rational Inquiry was a -- a -- it was what Mr. Raniere set up that was the basis of all of the self-help programs that NXIVM oversaw.
MR. LESKO: And so would First Principles license out that Rational Inquiry concept to other NXIVM-related entities?
JAMES LOPERFIDO: No, I believe just to NXIVM.
MR. LESKO: Just to NXIVM, itself?
JAMES LOPERFIDO: Yes.
MR. LESKO: Okay. And you mentioned Mr. Raniere, do you see him in court here today?
JAMES LOPERFIDO: Yes.
MR. LESKO: Can you identify him by an article of clothing he's wearing?
JAMES LOPERFIDO: He's wearing a sweater and a collared shirt.
MR. LESKO: Indicating the defendant, Your Honor.
THE COURT: Yes, let the record indicate that the witness identified the defendant.
BY MR. LESKO:
MR. LESKO: And who was Mr. Raniere?
JAMES LOPERFIDO: Mr. Raniere is the -- was the fellow that pretty much ran NXIVM.
MR. LESKO: Was he the decision-maker at NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: Was he the leader of NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: Now, during the time period you worked with NXIVM, did you discuss the issue of paying taxes with Kathy Russell?
JAMES LOPERFIDO: Often.
MR. LESKO: And what did she say?
JAMES LOPERFIDO: Our -- our job was to look at everything and -- with a goal to mitigate as much tax as possible for all of the companies that -- that NXIVM was associated -- NXIVM and NXIAN was associated with.
MR. LESKO: What does the term mitigate mean in a tax context?
JAMES LOPERFIDO: For me it means finding a way to lower the tax liability, either by lowering sales, raising expenses, or finding tax credits.
MR. LESKO: And they were concerned about mitigating tax liabilities, basically?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did they have an ultimate goal with respect to all the related companies?
JAMES LOPERFIDO: Zero tax.
MR. LESKO: And when you worked for NXIVM, were the companies, related companies and the individuals involved with NXIVM paying taxes to the best of your knowledge?
JAMES LOPERFIDO: I don't think they were.
MR. AGNIFILO: I object, Your Honor. If he has personal knowledge.
THE COURT: Yes, I am going to strike the answer. You can ask the question differently.
BY MR. LESKO:
MR. LESKO: Did some of your work at NXIVM involve dealing with situations where NXIVM-related companies had not paid taxes?
JAMES LOPERFIDO: Yes.
MR. LESKO: Okay. And is the same true for individuals involved in NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: Now, this tax research you discussed, what sort of tax issues did you research?
JAMES LOPERFIDO: Things such as nexus issues with -- with -- with the state of Washington. Pretty much -- I'm sorry, I don't remember a lot of it, but there was a lot of tax research that was done.
MR. LESKO: Were you part of a task force set up to research tax issues?
JAMES LOPERFIDO: Yes.
MR. LESKO: And who was on that task force?
JAMES LOPERFIDO: Joe O'Hara, Kathy Russell and myself.
MR. LESKO: And when you say nexus, that means tax issues related -- connected to Washington state, is that what you mean?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: Okay. And did you actually prepare tax returns for NXIVM-related companies?
JAMES LOPERFIDO: I did, yes.
MR. LESKO: Did you prepare tax returns for NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did you prepare tax returns for individuals associated with NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: Who were some of those individuals?
JAMES LOPERFIDO: Nancy Salzman and Pam Cafritz come to mind. There may have been others.
MR. LESKO: Was Nancy Salzman a high ranking person in NXIVM?
JAMES LOPERFIDO: Yes.
MR. LESKO: Where did she rank in your opinion?
JAMES LOPERFIDO: I believe she was Number 2.
MR. LESKO: And who was Pam Cafritz?
JAMES LOPERFIDO: She -- I wasn't quite sure. I still am not quite sure what part she played in NXIVM. I know she was a high ranking person within -- within the company.
MR. LESKO: And did she have a relationship with anybody within the company to the best of your knowledge?
JAMES LOPERFIDO: I believe she had a relationship with Mr. Raniere.
MR. LESKO: Was NXIVM an easy or difficult client to work with?
JAMES LOPERFIDO: They were a difficult client to work with.
MR. LESKO: You mentioned you were paid an hourly rate?
JAMES LOPERFIDO: Yes.
MR. LESKO: Were you required to do anything before you began working for NXIVM?
JAMES LOPERFIDO: Yes, I was required to take the five-day course.
MR. LESKO: Was it called an intensive?
JAMES LOPERFIDO: Yes.
MR. LESKO: And who ran that intensive?
JAMES LOPERFIDO: Nancy ran it. Nancy Salzman ran it, but there are others that were involved as well.
MR. LESKO: During this first five-day intensive did you ever hear the term suppressive?
JAMES LOPERFIDO: Yes.
MR. LESKO: And how was that term used during the intensive?
JAMES LOPERFIDO: A suppressive, as I understood it, was someone that would -- was ultimately out to hurt you, and -- and it was important to stay away from those folks.
MR. LESKO: During the time you worked for NXIVM, did you take another intensive?
JAMES LOPERFIDO: Yes, an eleven-day intensive.
MR. LESKO: And did that complete the sixteen-day intensive?
JAMES LOPERFIDO: Yes.
MR. LESKO: After you took the five-day and the eleven-day intensives, did you take any additional NXIVM intensives or classes?
MR. LESKO: Why not?
JAMES LOPERFIDO: By then I -- I should -- I really enjoyed the five- and the eleven-day, but by then it was getting to be a little too much. A little just -- it was like a well that was never ending and it just wasn't to my liking.
MR. LESKO: When you say a well that was never ending, what do you mean?
JAMES LOPERFIDO: I mean there was always something to take. There was always something to be involved with, and it was all about -- speaking personally -- about me and my relationships with people. For me it was just too much.
MR. LESKO: Were you pressured to take these classes?
JAMES LOPERFIDO: Yes.
MR. LESKO: And you declined it every time?
JAMES LOPERFIDO: Yes.
MR. LESKO: Okay. And when you worked for NXIVM, did you travel to the Albany region to work for the company?
JAMES LOPERFIDO: Yes.
MR. LESKO: And did you use a laptop computer at that time?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: Did you bring your laptop computer to Albany when you went there to work for NXIVM?
JAMES LOPERFIDO: Every time.
MR. LESKO: Did you use any particular computer programs in connection with your work for NXIVM?
JAMES LOPERFIDO: I'd use QuickBooks, Microsoft Excel and Microsoft Word.
MR. LESKO: And when you traveled to Albany to work for NXIVM, where would you go?
JAMES LOPERFIDO: I would stay at a hotel not far from there, and then I would go to the New Karner Road location, their -- the headquarters to work there.
MR. LESKO: Is that 455 New Karner Road?
JAMES LOPERFIDO: Yes.
MR. LESKO: Who was your point of contact at NXIVM?
JAMES LOPERFIDO: Kathy Russell.
MR. LESKO: Did she have an office?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did you visit her office?
JAMES LOPERFIDO: Yes.
MR. LESKO: And what was office called?
JAMES LOPERFIDO: It was the accounting office. It was a small room with two or three people in it, including Kathy, that did the accounting and bookkeeping for the company.
MR. LESKO: Could you explain, when you visited NXIVM's offices could you explain where you actually physically worked when you were there?
JAMES LOPERFIDO: At times I would work in the accounting office, itself. And other times I would work just outside of the accounting office, which was a large social room where you can get coffee and -- and light -- light foods. And -- and those are the two main places.
MR. LESKO: Okay. And was there a rec room in the --
JAMES LOPERFIDO: That's what I'm talking about, yes, it's a rec room type of place.
MR. LESKO: Did you ever meet in like a therapy-type room?
JAMES LOPERFIDO: Yes.
MR. LESKO: And who met --
JAMES LOPERFIDO: The task force met in a -- in a -- in a therapy-type room. Those were the first maybe six months or so that I was -- that I was working there. The task force, Joe O'Hara, Kathy and myself, sometimes Nancy would join us. I don't believe anybody else did. I don't remember anybody else anyway.
(Continuing on the following page.)
(Continuing)
MR. LESKO: So you worked at various spaces at 455 New Karner Road; right?
JAMES LOPERFIDO: Yes.
MR. LESKO: And you worked on your laptop?
JAMES LOPERFIDO: Most all the time.
MR. LESKO: Okay. You plug it in, put it on the table, work --
JAMES LOPERFIDO: Yes.
MR. LESKO: -- various locations.
Did you ever leave your laptop unattended while you visited and worked at NXIVM?
JAMES LOPERFIDO: Sure, a few times.
MR. LESKO: And explain the circumstances when you would leave the laptop unattended.
JAMES LOPERFIDO: There are times that Kathy would want to leave the -- the -- that headquarters. We'd go for lunch or one time we went for an ice cream cone. And I think that was it. And it was maybe four or five times, maybe six times we would do that.
MR. LESKO: Okay. Was the ice cream cone trip, was that unique?
JAMES LOPERFIDO: It was a bit unique, yes.
MR. LESKO: And strike you as odd?
JAMES LOPERFIDO: Yeah, I was never asked to do that before.
MR. LESKO: Did the laptop have a password?
JAMES LOPERFIDO: I believe it did.
MR. LESKO: Did anyone other than yourself know the password to your laptop computer?
JAMES LOPERFIDO: Not that I'm aware of.
MR. LESKO: Did you give anyone at NXIVM the password to your laptop computer?
MR. LESKO: While you were working at 455 New Karner Road, did other people enter the office during the day?
JAMES LOPERFIDO: Often, yes.
MR. LESKO: Describe the in-and-out of the office in terms of people coming in.
JAMES LOPERFIDO: Sure. Some people came in to get paid. Other people came in to ask questions. There are people that were actually doing bookkeeping there as well, in and out, on a part-time basis. So it was a pretty busy place.
MR. LESKO: Okay. When you visited the office, NXIVM's office between 2004 and 2006 with your laptop computer, did you give anyone at NXIVM permission to place a device on or in your laptop computer?
JAMES LOPERFIDO: Definitely not.
MR. LESKO: Did you observe anyone placing a device in or on your laptop computer during that time period?
MR. LESKO: Do you know what a key logger is?
JAMES LOPERFIDO: I do now, yes.
MR. LESKO: What is a key logger?
JAMES LOPERFIDO: It's something that keeps track of all your keystrokes.
MR. LESKO: Did you give anyone at NXIVM permission to put a key logger in or on your laptop computer at any time?
MR. LESKO: Do you know if a key logger was placed on your laptop while you were working for NXIVM?
JAMES LOPERFIDO: I was told, yes.
MR. LESKO: Did you know it at the time?
MR. LESKO: Were you told much later?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did you ever meet with the defendant?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did you ever learn whether or not the defendant made any income?
MR. LESKO: No, you --
JAMES LOPERFIDO: No, I met with the defendant. Whether he made income is a debatable issue.
MR. LESKO: How is that debatable?
JAMES LOPERFIDO: The question of whether he, in fact, owned the company or not, was always in question. While most of the companies were in Nancy's name, it was pretty clear that Keith was running them and making the big decisions.
MR. LESKO: Did anyone ever tell you, though, that he actually didn't make income?
JAMES LOPERFIDO: Often.
MR. LESKO: Who told you that?
JAMES LOPERFIDO: Kathy Russell.
MR. LESKO: Did you recall learning about a situation where the defendant lost a lot of money?
JAMES LOPERFIDO: Yes.
MR. LESKO: Who told you that?
JAMES LOPERFIDO: Kathy Russell.
MR. AGNIFILO: I object, hearsay.
MR. LESKO: I just repeat, who told you this?
THE COURT: I'm overruling that.
Go ahead.
JAMES LOPERFIDO: Kathy Russell.
MR. LESKO: What did she say?
JAMES LOPERFIDO: She said -- it was part of one of our task force meetings in that Mr. Raniere had been trying to develop an algorithm for commodities trading and he had lost a great deal of money in his effort to learn it and understand it.
MR. LESKO: What sort of -- what was a great deal of money?
JAMES LOPERFIDO: Tens of millions.
MR. LESKO: And do you -- did you learn where the defendant received those millions of dollars that he lost?
JAMES LOPERFIDO: Yes. From, I believe, Clare Bronfman and possibly her sister as well. I'm not sure.
MR. LESKO: And who were they?
JAMES LOPERFIDO: They were his -- they were in the NXIVM clan. They -- I don't know what their role was or -- at that time. What they were involved with, but they were very involved in NXIVM and especially as it related to money.
MR. LESKO: Do you recall attending a meeting where -- with the defendant and others were where a possible investment was discussed?
JAMES LOPERFIDO: Yes.
MR. LESKO: Who was at that meeting?
JAMES LOPERFIDO: That meeting was all the folks that were the higher command in NXIVM; Kathy Russell, Mr. Raniere, Pam Cafritz, Nancy Salzman.
There was, I think a woman by the name of Barb Jeske was there, and a few others.
MR. LESKO: What was discussed?
JAMES LOPERFIDO: It was -- it was -- a fellow was making a presentation regarding an investment in metals. Gold, I believe.
MR. LESKO: Okay. Do you recall attending a NXIVM event where you watched a movie?
JAMES LOPERFIDO: Yes.
MR. LESKO: What was that event?
JAMES LOPERFIDO: That was part of the Vanguard Week up in -- north of Lake George.
MR. LESKO: Who was the vanguard at NXIVM?
JAMES LOPERFIDO: Mr. Raniere.
MR. LESKO: And at that, was it called V week?
JAMES LOPERFIDO: Yes.
MR. LESKO: At that V week, did you assist in playing that movie?
JAMES LOPERFIDO: Yes, I was a projectionist.
MR. LESKO: Are you involved in the film industry?
JAMES LOPERFIDO: Somewhat, yes.
MR. LESKO: Are you familiar with a term cinephile?
JAMES LOPERFIDO: Yes.
MR. LESKO: What is a cinephile?
JAMES LOPERFIDO: Cinephile is a film enthusiast.
MR. LESKO: Would you consider yourself a cinephile?
JAMES LOPERFIDO: Yes.
MR. LESKO: Okay. What was the movie that you showed at the NXIVM V Week?
JAMES LOPERFIDO: It was a documentary by a fellow that had believed that it was -- it was -- that it was un-Constitutional to -- that taxes were un-Constitutional. I'm sorry I'm not explaining that well.
And the documentary was about that issue.
MR. LESKO: Okay. Did that concern you?
JAMES LOPERFIDO: Very much.
MR. LESKO: Did you ask to do anything, based upon your concern?
JAMES LOPERFIDO: I asked if I could -- at the end of movie, once I understood what the film was about, if I could address the audience, and I was worried that the documentary was showing a one-sided slant on this idea of not having to pay taxes because of Constitutional issues.
MR. LESKO: Were you allowed to address the crowd?
MR. LESKO: Okay. Did anyone at NXIVM express concerns about people coming after them?
JAMES LOPERFIDO: All the time.
MR. LESKO: Who did that?
JAMES LOPERFIDO: Nancy and -- I had a very short number of people that -- that I was in contact with, but Nancy and Kathy. It was a regular topic.
MR. LESKO: Do you recall any specific people who were allegedly coming after NXIVM?
JAMES LOPERFIDO: There was a fellow by the name of Rick Ross that was of great concern when I was there.
MR. LESKO: Who is Rick Ross, if you know?
JAMES LOPERFIDO: I don't. I don't recall.
MR. LESKO: Okay. Anyone else?
JAMES LOPERFIDO: I know there were. I just can't remember any names.
MR. LESKO: Okay. Okay. Did NXIVM pay legal fees --
JAMES LOPERFIDO: Yes.
MR. LESKO: -- to the best of your knowledge?
Would you say -- estimate, were they small amounts, large amounts?
JAMES LOPERFIDO: Pretty large amounts.
MR. LESKO: Did these legal expenses have an effect on NXIVM's finances?
JAMES LOPERFIDO: Certainly. It affected cash flow. When you have legal costs that are mounting into the millions, it's going to affect the cash flow.
MR. LESKO: Did anyone at NXIVM ask you to move to Albany?
JAMES LOPERFIDO: Yes.
MR. LESKO: Who?
JAMES LOPERFIDO: Nancy Salzman and Kathy Russell.
MR. LESKO: Did you agree to move to Albany?
MR. LESKO: Why not?
JAMES LOPERFIDO: I didn't want to. I saw myself as an oversight, a person that was -- that was outside of that NXIVM accounting department.
Number two, I didn't -- I had decided I did not want to be involved in the day-to-day life of a Nexian. And therefore, I didn't want to move.
MR. LESKO: Why didn't you want to be involved with NXIVM?
JAMES LOPERFIDO: It was too much of everything for me.
MR. LESKO: Did you have any concerns?
JAMES LOPERFIDO: Yes.
MR. LESKO: What were your concerns?
JAMES LOPERFIDO: My concerns were that they were, at times, inconsistent. They were -- what they preached was this idea of consistency and integrity. I really liked that.
But they did not, in my opinion, often follow that rule.
MR. LESKO: Did you have an impression as to --
MR. LESKO: Strike that.
MR. LESKO: Did you observe how the defendant was viewed within NXIVM?
JAMES LOPERFIDO: Yes. He was revered. He was very well respected.
MR. LESKO: At some point, did NXIVM have a conflict with Mr. O'Hara?
JAMES LOPERFIDO: Yes.
MR. LESKO: What was the nature of the conflict?
JAMES LOPERFIDO: By then I can only speak as an observer, but by then, Mr. O'Hara was having problems with his relationship with NXIVM. He told me he wasn't getting along with Mr. Raniere and he wasn't getting along with Ms. Salzman and he was thinking of leaving.
At the same time, he had asked Ms. Salzman to help broker a loan transaction for him.
MR. LESKO: How much was the loan for?
JAMES LOPERFIDO: I believe it was $2 million.
MR. LESKO: And what was it used for?
JAMES LOPERFIDO: For a land development.
MR. LESKO: Was it for a vineyard?
JAMES LOPERFIDO: Among other things, yes.
MR. LESKO: And did Mr. O'Hara end up not paying the payments due on that loan?
JAMES LOPERFIDO: It's my understanding that's correct.
MR. LESKO: Okay. And did Nancy Salzman and Mr. O'Hara -- did Nancy Salzman attempt to broker an arrangement with Mr. O'Hara related to that loan?
JAMES LOPERFIDO: Yes. My understanding is the agreement was that if Nancy was able to get Mr. O'Hara a $2 million loan, that he would work for NXIVM at no charge.
MR. LESKO: Did he agree to that?
JAMES LOPERFIDO: I believe he did.
MR. LESKO: Okay. And ultimately there was a dispute?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did anyone associated with NXIVM take any action against Mr. O'Hara?
JAMES LOPERFIDO: The -- the -- yes. Clare Bronfman, who loaned the money, took action against Mr. O'Hara.
MR. LESKO: What type of action?
JAMES LOPERFIDO: She sued him.
MR. LESKO: And was that in approximately 2006?
JAMES LOPERFIDO: Sounds right.
MR. LESKO: And during this time, were you still visiting and working at NXIVM with your laptop computer?
JAMES LOPERFIDO: Yes.
MR. LESKO: Did this conflict with Mr. O'Hara put you in an awkward position or situation?
JAMES LOPERFIDO: Yes.
MR. LESKO: How so?
JAMES LOPERFIDO: Well, Nancy and Kathy were both pressuring me to walk away from Mr. O'Hara.
At first, they were -- they wanted me to actually give them a lot of information about Mr. O'Hara's activities, and which I refused to do, in my own way. And then they just wanted me to get away from him.
MR. LESKO: Did Nancy Salzman ever say anything negative about Mr. O'Hara?
JAMES LOPERFIDO: Yes.
MR. LESKO: What did she say?
JAMES LOPERFIDO: That Mr. O'Hara was a suppressive, he was dangerous, and that I would be dragged into a lawsuit that I did not want to do.
MR. LESKO: And did you ultimately agree to take sides in this dispute?
MR. LESKO: Did you participate in depositions as part of a lawsuit against Mr. O'Hara?
JAMES LOPERFIDO: Yes.
MR. LESKO: How many?
JAMES LOPERFIDO: Two.
MR. LESKO: Did anything happen in your office in connection with this lawsuit against Mr. O'Hara?
JAMES LOPERFIDO: The depositions happened in my office. They were -- they were difficult depositions. The attorneys for Ms. Bronfman were very strong, very, very difficult.
MR. LESKO: Okay. Did anything happen with your office computers?
JAMES LOPERFIDO: Yes. They were -- they received -- were able to get a court order to copy all of the hard drives in my -- in my office to look for information about Mr. O'Hara.
MR. LESKO: Were you concerned that you were going to be sued as a result of this?
JAMES LOPERFIDO: Without a doubt, yes.
MR. LESKO: At some point did your employment with NXIVM get terminated?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: How did that happen?
JAMES LOPERFIDO: I was asked to sit in a meeting in my office with an attorney for NXIVM. I believe he was an attorney for a firm called Proskauer Rose. I agreed to do that.
He spent the day with me and I -- they stopped -- the next day -- well, while he was there, he told me that he would be -- that NXIVM had agreed to pay my legal fees if I was caught up in the battle with Mr. O'Hara.
The next day he called back and said he would not. NXIVM has now declined to pay any legal fees that might develop from -- from what was going on with Mr. O'Hara. And all ccommunication with NXIVM and all of its -- all the companies I had worked for had stopped --
MR. LESKO: Okay.
JAMES LOPERFIDO: -- on that day.
MR. LESKO: Now, it's late so now we're going to do a speed round through an exhibit.
MR. LESKO: So I'm going to show you what's in evidence. Your Honor, if we can publish this. It's in evidence as Government's 1527. If we could show that on the ELMO.
(Exhibit published.)
MR. LESKO: Okay. Everybody can see that. 1527 in evidence.
BY MR. LESKO:
MR. LESKO: I'm going to ask you a few questions about some of the items in this exhibit.
Okay. Let's start with Universal Collectibles. Do you recognize Universal Collectibles?
JAMES LOPERFIDO: Yes. It's an auction house I did business with.
MR. LESKO: And was that online?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: Okay. Quality Inn, Albany. Do you recognize that?
JAMES LOPERFIDO: Yes, that's where I stayed when I was visiting NXIVM.
MR. LESKO: ThumperNet. Do you recall what ThumperNet was?
JAMES LOPERFIDO: My service provider.
MR. LESKO: Cinephile. Could you have used cinephile as a password at one time?
JAMES LOPERFIDO: I may have.
MR. LESKO: QuickBooks. Did you use QuickBooks?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: Disc Care Bulk Products. Do you recognize that?
JAMES LOPERFIDO: Yes.
MR. LESKO: What's that?
JAMES LOPERFIDO: That's a company that -- that sells IT software and supplies.
MR. LESKO: Okay. Strategic Government Solutions, do you recognize that name?
JAMES LOPERFIDO: Yes, that's Mr. O'Hara's company.
MR. LESKO: Bank of America. Do you recognize -- do you bank at Bank of America?
JAMES LOPERFIDO: Credit card.
MR. LESKO: The third page of Government's 1527.
(Exhibit published.)
MR. LESKO: Providian, do you recognize that word?
JAMES LOPERFIDO: That's my credit card. It's now Chase Bank.
MR. LESKO: Abraham, do you recognize that word?
JAMES LOPERFIDO: He was the office manager at Mr. O'Hara's office. He's also Mr. O'Hara's son.
MR. LESKO: Okay. Eagle Cove Properties. Do you recognize that name?
JAMES LOPERFIDO: Yes, sir. That's the company that Mr. O'Hara set up to operate the vineyard that he was planning.
MR. LESKO: That's the company that got the loan from the Bronfmans?
JAMES LOPERFIDO: I think Mr. O'Hara got the loan, but it was a company that Mr. O'Hara set up. That's what he spent money on.
MR. LESKO: That was funded by the loan proceeds; is it fair to say?
JAMES LOPERFIDO: Yes, sir.
MR. LESKO: Lastly, W.W. Hodkinson, do you recognize that name?
JAMES LOPERFIDO: Yeah, I do. That is a film -- it's a film-based site. Hodkinson was -- was the founder of Paramount.
MR. LESKO: And you're a fan?
JAMES LOPERFIDO: Yes.
MR. LESKO: No further questions, Your Honor.
THE COURT: About how much do you have?
MR. AGNIFILO: I have more than seven minutes, I know that.
THE COURT: Well, you are going to have to come back, sir. Wednesday.
JAMES LOPERFIDO: I see.
THE COURT: I am sorry we could not finish today.
JAMES LOPERFIDO: Okay.
THE COURT: All right. We will not go forward then with cross-examination.
You may stand down. You are excused for the day.
(Witness excused.)
THE COURT: All right.
Members of the Jury, I am going to remind you that it's very important that you follow my instruction and not discuss the case with anyone; not your family, friends or business associates, and not your fellow jurors.
In addition, you must not read, listen to, watch or access any accounts of this case on any form of media, newspapers, TV, radio, podcasts, or the Internet, nor research nor seek out information about any aspect of the case.
Please do not communicate with anyone about the case on your phone, whether it's through e-mail, text messaging or any other means, through any blog or website or by way of any social media, including Facebook, Twitter, Instagram, YouTube or other similar sites.
You must not consider anything you may have read or heard about this case outside of this courtroom, whether you read it before or during jury selection or trial.
Do not visit any of the locations identified during the course of jury selection or trial.
We are adjourning now until next Wednesday at 9:30 a.m. And for those of you who are celebrating the religious holiday, we all wish you the very best on your celebration.
All rise for the jury.
COURT CLERK: All rise.
(Jury exits.)
(In open court; outside the presence of the jury.)
THE COURT: Anything further for today?
MS. PENZA: No, Your Honor.
MR. AGNIFILO: Nothing from us, Your Honor.
THE COURT: All right. Have a good weekend.
See you on -- well, we may see you Tuesday afternoon at 2:30.
MR. AGNIFILO: Okay.
THE COURT: We will be in touch with your offices.
MR. AGNIFILO: Very good. Thank you, Judge.
MS. PENZA: Thank you, Your Honor.
MR. AGNIFILO: Oh, Your Honor, I'm not sure, would that affect the order to produce timing? I guess we would have to do it early enough -- this is more a question for the Government, Your Honor, I apologize.
It's about producing the defendant, depending on when we know we're going to go forward on Monday. We will work it out.
THE COURT: Okay. Thank you.
Thank you very much.
(Matter adjourned to Wednesday, June 5th, 2019 at 9:30 a.m.)
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