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2019 Federal TrialtranscripttranscriptSean Welch — Direct/Cross/Redirect/Recross - Day 8 - 2019 Federal TrialSean Welch authenticated restraint-product orders and answered questions about legality and consent before being excused. The court admitted additional exhibits after a brief recess.
Tanya HajjarMoira Kim PenzaMarc AgnifiloNicholas G. GaraufisSean WelchMS. PENZATHE COURTSean WelchMR. AGNIFILOMS. HAJJARdirectcrossredirectrecross
3 pages·3 witnesses·1,763 lines
Fontanelli completed testimony about seized cash, including an unexplained difference between a count and deposit records. Welch addressed restraint-product orders and consent. Lauren Salzman began testimony about her guilty plea, participation in Daniela’s confinement and DOS extortion, and relationship with Raniere.
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DirectDirectSean Welch — Direct Sean Welch Moira Kim Penza

MS. PENZA: The Government calls Sean Welch.

THE COURT: Please raise your right hand, sir.

(Witness takes the witness stand.)

SEAN WELCH, called as a witness, having been first duly sworn/affirmed, was examined and testified as follows:

THE COURT: Be seated, sir. And state and spell your full name for the record.

SEAN WELCH: Sean Welch, S-E-A-N, W-E-L-C-H.

THE COURT: You may inquire.

DIRECT EXAMINATION BY MS. PENZA:

MS. PENZA: Good morning, Mr. Welch.

By whom are you employed?

MS. PENZA: What is your position?

MS. PENZA: What does that stand for?

SEAN WELCH: Chief Technology Officer.

MS. PENZA: What are your day to day responsibilities at XR LLC?

SEAN WELCH: Maintain the websites and the overall operations when it comes to systems.

MS. PENZA: How long have you been with XR LLC?

SEAN WELCH: Over 13 years.

MS. PENZA: Are you familiar with you -- said you're familiar with the various systems of XR LLC?

MS. PENZA: Are you familiar with the billing records and the invoices?

MS. PENZA: Are you also familiar with XR LLC's websites?

MS. PENZA: What does XR LLC do?

SEAN WELCH: We sell sex toys online through various websites.

MS. PENZA: Do customers purchase products directly from XR LLC?

SEAN WELCH: Yes, through the websites.

MS. PENZA: Sorry, you said through the websites, what do you mean by that?

SEAN WELCH: They go to our websites, like ExtremeRestraints.com, and place orders through there.

MS. PENZA: So you said ExtremeRestraints.com?

MS. PENZA: Are there other websites through which customers can place orders?

MS. PENZA: What are those?

SEAN WELCH: HealthyActive.com, BoyShop.com, SexToyDistributing.com, and we also sell goods through Amazon.

MS. PENZA: So when somebody wants to make a purchase, they would go through one of those other websites and then it would be directed to XR LLC?

SEAN WELCH: Yes. They would place the orders through the websites, through other channels, then we import the order data and fulfill it.

MS. PENZA: When somebody makes a purchase through -- when somebody makes a purchase through ExtremeRestraints.com, how would the purchase show up on their credit card statement?

SEAN WELCH: They will be billed as XR LLC.

MS. PENZA: Why is that?

SEAN WELCH: So that the website names don't show up on the credit card statements for discreet billing.

MS. PENZA: Did you receive a subpoena in this case?

SEAN WELCH: Yes, I did.

MS. PENZA: Pursuant to that subpoena, did you provide the Government with documents related to purchases by Daniela Padilla or Daniela Bergeron?

MS. PENZA: What did you do upon receiving the subpoena?

SEAN WELCH: When I received the subpoena, I initially tried to do a search in our internal systems for the name they gave me, but I didn't find anything. So we had to clarify the search terms, then I found information from the names that they listed.

MS. PENZA: Did you ultimately locate some records?

SEAN WELCH: Yes, I did.

MS. PENZA: Your Honor, may I approach the witness?

THE COURT: Yes, you may.

MS. PENZA: Mr. Welch, for convenience I've handed you three stacks of exhibits. If could you look at the first three. They are marked for identification purposes as Government's Exhibit 851, 852, 853, and 854 do you see those?

SEAN WELCH: Yes, I do.

MS. PENZA: Are you familiar with those documents?

SEAN WELCH: Yes, I am.

MS. PENZA: Can you just describe very generally what those are?

SEAN WELCH: They are the order information from the orders that were imported into our system from the websites.

MS. PENZA: Is this information that you maintain in the regular course of XR LLC's business?

MS. PENZA: Do these documents truly and accurately reflect the records of XR LLC?

MS. PENZA: The Government moves, or offers rather, Government's Exhibit 851 through 854 into evidence.

MR. AGNIFILO: No objection.

THE COURT: Government's Exhibit 851, 852, 853, 854 are received in evidence.

(Government Exhibit 851, 852, 853, 854, were received in evidence.)

BY MS. PENZA:

MS. PENZA: Mr. Welch, is it fair to say that these exhibits relate to two different orders?

MS. PENZA: And what are the dates of the two different orders?

SEAN WELCH: The first order is 5/26/2017.

MS. PENZA: And the second order?

SEAN WELCH: 5/28/2017.

MS. PENZA: So let's look at the 5/26/2017 order first. Zooming out, can you explain what this document is?

SEAN WELCH: This is a copy of the sales order invoice that our system generates.

MS. PENZA: So over in the top right is this the order date 5/26/2017?

SEAN WELCH: Yes. Also the order number on the ExtremeRestraints web.

MS. PENZA: So the order number -- how do you know it's Extreme Restraints' website?

SEAN WELCH: It starts with the letters EX.

MS. PENZA: This is an order number that ends in 8694?

MS. PENZA: If we look over here, what do these categories of information show?

SEAN WELCH: These are the billing and shipping information supplied with the order.

MS. PENZA: So for here the billing and the shipping match; is that correct?

MS. PENZA: It's Daniela Bergeron, 8 Raleigh Drive, Halfmoon, New York, 12065; is that correct?

SEAN WELCH: That's correct.

MS. PENZA: Then there is a contact name and a contact number; is that right?

MS. PENZA: Then let's go through the invoice. The first item is this first number, here what does that number represent?

SEAN WELCH: That's our SKU number that we have in our system.

MS. PENZA: So the first item number is the remote puppy trainer; is that right?

SEAN WELCH: Yes, that's correct.

MS. PENZA: Are there a lot of product -- a number of products on the Extreme Restraint website that talk about puppies?

MS. PENZA: Are those items meant for animals?

MS. PENZA: They are meant for people?

MS. PENZA: Going to the next item, is that the item number AC892?

MS. PENZA: That's a studded rubber paddle?

MS. PENZA: The next one, item AD743?

MS. PENZA: That's the MS hanging rubber strap cage?

MS. PENZA: Item number four, AE306, the heavy duty suspension bar kit?

MS. PENZA: Income number five, AE991, the 3.5-inch ankle shackle mounts pair?

MS. PENZA: That comes two to a set?

MS. PENZA: Turning to the next page, item six, AE916; is that correct?

MS. PENZA: That says ST thigh sling with wrist cuffs?

MS. PENZA: AF199, MS subdued full body strap set?

MS. PENZA: Then the rest of the items on here, are those actually items that were purchased?

SEAN WELCH: No. They are free samples that we provide for customers and then the free charges.

MS. PENZA: I'd like you now to look at the second set of the second group of exhibits that I handed you, which have been marked for identification as 855, 856, 857, 858, 859, 860, and 861.

MS. PENZA: Do you see all of those?

MS. PENZA: Are you familiar with those?

MS. PENZA: Can you describe generally what those are?

SEAN WELCH: These are the product descriptions on our websites.

MS. PENZA: Matching the items that we just looked at?

MS. PENZA: Do these fairly and accurately represent the items as depicted on your website?

MS. PENZA: Your Honor, the Government moves Government's Exhibit 855 through 861 into evidence.

MR. AGNIFILO: No objection.

THE COURT: All right. Government's Exhibit 855, 856, 857, 858, 859, 860, 861 are received in evidence. You can publish them to the jury.

(Government Exhibit 855, 856, 857, were received in evidence.)

(Government Exhibit 858, 859, 860, 861, were received in evidence.)

BY MS. PENZA:

MS. PENZA: I'm going to start with Government's Exhibit 855. Is this the remote shock puppy trainer?

MS. PENZA: It costs $159?

MS. PENZA: How is that meant to be worn?

SEAN WELCH: Around the neck.

MS. PENZA: Turning to the next page there is a section called -- Mr. Welch, there are a number of portions of these documents that are redacted, can you just generally describe what has been redacted?

SEAN WELCH: The other items that may be related, if you would like to purchase similar items, and the reviews as well.

MS. PENZA: So turning to the next page can you read the details, please?

SEAN WELCH: "Train your pet to obey every command. The new and improved deluxe dog trainer is the smallest, lightest training collar on the market, just 2.4 ounces, perfect for puppy play or naughty slaves. This wicked device allows you to you teach them a quick lessen in tone, vibration and 15 levels of static stimulation. Simply turn the knob to the level of correction you want and press the bottom. Device creates a sound each time shock is emitted for training purposes. The second button will emit the same tone, but no shock, to warn your bad puppy that a shock may be coming if they keep it up. With a range of up to 100 yards, you can even punish your play thing from afar. Both the remote and collar are fully rechargeable for your convenience and even waterproof so they never have to be taken off, even in the shower. No external antenna is needed to keep your pup in line."

MS. PENZA: There is some additional specifications listed?

MS. PENZA: This is the first item that we saw on the invoice that we looked at?

MS. PENZA: Then the studded rubber paddle?

MS. PENZA: This is the second item that we saw on the invoice?

SEAN WELCH: Yes, it is.

MS. PENZA: It costs 35.95?

MS. PENZA: Going to the third item, this is Government's Exhibit 857, this is the hanging rubber strap cage?

MS. PENZA: That costs $299.95?

MS. PENZA: That's the third item that was on that invoice?

MS. PENZA: Can you read the details for this, please?

SEAN WELCH: "This rubber strap cage offers a unique way to keep your partner encased and restrained. With this rubber strap cage your partner steps onto a platform base and becomes surrounded with durable rubber straps. The straps are designed in a downward, criss-cross pattern. The body weight pulls down the cage bringing the straps in closer to them and keeping them at bay. Think Chinese finger trap when figuring out how this product will work in your next round of bondage play."

MS. PENZA: Do you know what a Chinese finger trap is?

MS. PENZA: Can you describe it?

SEAN WELCH: It's where you stick your finger in and the tighter you pull it, the tighter the cuffs hold you.

MS. PENZA: Then can you read the specs and benefits?

SEAN WELCH: "Side cage measures 75 inches in total length. Base and top ring measure 12-inches in diameter. Material: Rubber, metal, wood. Color: Black. Your partner's body weight pulls on the cage restraining them. The straps are designed in a criss-cross pattern. Note please, follow proper installation and consider the weight bearing capability of your installation. We would advise installing this item in a beam. These products, as well all products on this site, are supplied as is. No warranty is given, either implied or expressed. Products are intended as novelty only. No representation is made or applied as to their suitability or safety for any particular use. Purchasers use the products entirely at their own risk."

MS. PENZA: That's enough on that.

Does that warning appear on all of the items on the website?

SEAN WELCH: Not all of the items.

MS. PENZA: Why does it appear on some?

SEAN WELCH: I'm not sure.

MS. PENZA: Moving on to the next item, Government's Exhibit 858. What is this?

SEAN WELCH: The heavy duty steel suspension kit.

MS. PENZA: And this was the fourth item on that invoice we looked at?

MS. PENZA: Can I ask you to read the details for this, please?

SEAN WELCH: "This impressive suspension kit adds new dimensions to play with your partner. Features premium leather cuffs and the heavy duty bondage bar, this set is designed toward partners to enjoy suspension play. The cuffs easily attach to the bar, leaving your partner to hang and anticipate your every move. The bar itself hangs from a ceiling or supportive frame and is designed to take weight."

MS. PENZA: Showing you what is in evidence as Government's Exhibit 859, can you describe what this is?

SEAN WELCH: Yes, this is a picture of the steel shackles.

MS. PENZA: Is there a reason why this item why there is not the full website page?

SEAN WELCH: It's been disconnected from use.

MS. PENZA: But this was the item that was number five on the invoice?

MS. PENZA: Showing you what is in evidence as Government's Exhibit 860. Is this the deluxe thigh sling with wrist cuffs?

MS. PENZA: Sorry, I just want to -- we'll come back to this. I want to go to Government's Exhibit 851 for a second, for the ankle shackle mounds is the price listed?

MS. PENZA: That was?

MS. PENZA: I'm not sure I already asked, but the heavy duty suspension bar kit was $199?

MS. PENZA: Going back to Government's Exhibit 860, is this the deluxe thigh sling with wrist cuffs?

MS. PENZA: That's 79.95?

MS. PENZA: Can you read the details please?

SEAN WELCH: "Open up your partner so you can both experience more pleasure. Perfect for getting your lover into your desired position while adding some kink. This thigh sling with wrist cuffs will provide the enhancement you've been looking for to your sexual endeavors. Pull those legs back and bind their wrists behind them so you can pummel deep in them while they are helplessly pleasured. Exposed and vulnerable they will be wide open to tease and torment. Give them mind-blowing oral sex or multiple orgasms with a massage wand. Turn them over onto their knees with their face down for spanking or some dirty doggy-style. This positioning aid will pull their thighs back towards their chest and keep their wrists bound with adjustable and comfortable padded cuffed. You can even lock the buckles to increase the sense of their entrapment. You call the shots when your submissive partner is restrained and at your mercy."

MS. PENZA: That was item number six on the invoice on the first invoice?

MS. PENZA: The last item on that invoice, Government's Exhibit 861 is this the subdued full body strap set?

MS. PENZA: It costs 29.95?

MS. PENZA: And can you read the details for this one?

SEAN WELCH: "Buckle up your lover in seven tight straps. Get creative with your bondage. These seven body straps allow you to customize your partner's restraints wrapping them up from shoulders to ankles. Various lengths and easy adjustability mean that you can bind their wrists, forearms, thighs or whatever your heart desires. Convenient buckles make it easy to secure your lover and even easier to set them free when you're done playing with their body. Paralyze your partner with this customizable strap set."

MS. PENZA: Turning to what is in evidence -- just look at Government's Exhibit 851 for a second. Can you tell us what the total amount of that order was?

MS. PENZA: Now showing you what is in evidence as Government's Exhibit 853?

THE COURT: Is this in evidence?

MS. PENZA: Yes, it is. I'm sorry, your Honor.

BY MS. PENZA:

MS. PENZA: Is this the second invoice?

MS. PENZA: So let's start in the upper left corner again. Does this have an order number?

SEAN WELCH: Yes, Extreme Restraints 2299592.

MS. PENZA: It has an order date?

SEAN WELCH: Yes, 5/28/2017.

MS. PENZA: Looking at here, there is a, can you describe the addresses that we see?

SEAN WELCH: The bill to and ship to addresses.

MS. PENZA: The bill to address is Daniela Padilla, 8 Raleigh Drive, Halfnoon, New York, 12065?

MS. PENZA: This is the ship to on the right?

MS. PENZA: Can you read that name and address, please?

SEAN WELCH: Alex Martin, 9 Milltowne, Waterford, New York, 12065.

MS. PENZA: I just want to go back for one second, the order that we looked at already, the order from 5/26/2017, 2017, do you know whether that order actually shipped?

SEAN WELCH: The order did ship.

MS. PENZA: And you were able to review your records and see that that had happened?

MS. PENZA: This order that we're looking at now, did this order actually end up shipping?

SEAN WELCH: No, it did not.

MS. PENZA: I'm showing you what is in evidence as Government's Exhibit 854, can you describe what this is?

SEAN WELCH: This is a screen shot from our order system. It shows the status of canceled for the order.

MS. PENZA: Do you have an understanding of why that was canceled?

SEAN WELCH: Yes. In the right-hand side under the header tab it says CCID scans. This order was likely canceled because the bill to and ship to information didn't match. We weren't able to get further information for the order.

MS. PENZA: What is the typical process when you have an instance like that?

SEAN WELCH: When the orders are imported in our system and put on hold, we reach out via e-mail and telephone to try to get additional information to verify the order.

MS. PENZA: And if they can't verify the information, the order will be canceled?

MS. PENZA: Does the customer, if the customer is reached, also has the option to cancel?

SEAN WELCH: The customer can cancel if they wish.

MS. PENZA: Did you try to look back to see if you can find out more details about this cancelation?

SEAN WELCH: We didn't have any information on file; we changed e-mail systems.

MS. PENZA: Going back to Government's Exhibit 853, we were just looking at, that had the different bill to and ship to addresses, this is the order that was placed but then canceled by your system; is that correct?

MS. PENZA: Is there a contact name and number?

MS. PENZA: Let's walk through the items here and then we'll walk through the items here first.

The first item, again is the item number on the Extreme Restraints website?

MS. PENZA: The first one is item number RI900?

MS. PENZA: Steel puppy cage?

MS. PENZA: Is it how much does that cost?

MS. PENZA: It's not for a puppy.

(Continued on next page.)

DIRECT EXAMINATION (Continued) BY MS. PENZA:

MS. PENZA: Item number 2, it's RI940; is that right?

MS. PENZA: And that's an upright cage?

MS. PENZA: And how much was the upright cage?

SEAN WELCH: It was $795.

MS. PENZA: Item number 3, the MS Good Boy Wireless Vibrating Remote Puppy Plug.

That's the next item?

MS. PENZA: And that's 49.95?

MS. PENZA: Number 4, the MS Puppy Play Hood Breathable Ball Gag?

MS. PENZA: And that's 39.95?

MS. PENZA: Item number 5, the ST Bed Restraint Kit.

And that's 44.95?

MS. PENZA: And the rest of the items on here, is that the same as you described in the other invoice, that they are not actually purchased items?

SEAN WELCH: Yes, that's correct.

MS. PENZA: I'm going to show you what's in evidence as Government's Exhibit 853 and 851 at the same time. That's the 5/26/17 purchase order and the 5/28/17 purchase order.

Is it fair to say that up here where we have Daniella Bergeron, 8 Raleigh Drive, Halfmoon, New York, that that is the same as down here where it says Daniella Padilla, 8 Raleigh Drive, Halfmoon, New York 12605?

MS. PENZA: It's the same -- even though it's a different last name, it's the same address there?

MS. PENZA: Okay. And then where it has contact, it has -- on Government Exhibit 851 it says Daniella Bergeron, and it lists the phone number ending in 1096, correct?

MS. PENZA: And then if you go to Government's Exhibit 853, it lists the Daniella Padilla with a different last name, but the same phone number ending in 1096, correct?

MS. PENZA: If I could ask you to look at the third set of exhibits.

Do you recognize those?

MS. PENZA: And just generally, what are those?

SEAN WELCH: These are descriptions of our products as they appear on our website.

MS. PENZA: Are these descriptions of the products as they appear on your website that match Government Exhibit 853, the second invoice we looked at?

MS. PENZA: Your Honor, the government offers Government's Exhibits 862 through 866 into evidence.

MR. AGNIFILO: No objections, Your Honor.

THE COURT: Okay. All right.

Government Exhibits 862, 863, 864, 865 and 866 are received in evidence.

MS. PENZA: Thank you, Your Honor.

(Government Exhibits 862, 863, 864, 865 and 866, were received in evidence.)

BY MS. PENZA:

MS. PENZA: Showing you first the Steel Puppy Cage.

Have you actually seen this item in person?

SEAN WELCH: Yes, I have.

MS. PENZA: Okay. And can you just describe generally how big it is?

SEAN WELCH: It's a cage probably about three and a half feet tall by four feet wide, made out of steel.

MS. PENZA: And is this image that's on the website, is that a person on the top of the cage?

MS. PENZA: And can you read the details for the Steel Puppy Cage.

SEAN WELCH: Yes.

Heavy-duty steel puppy cage, solid, collapsible and affordable. When you're looking for a full-sized iron cage that is escape proof, then look no further. This solid steel cage has a full-sized feeding slot on the front door that fits most standard K9 dishes --

MS. PENZA: What does that -- I'm sorry.

Do you know what that means, standard K9 dishes?

SEAN WELCH: No.

I would assume like dog feed bowls.

MS. PENZA: Can you continue, please.

SEAN WELCH: Welded all the way around for security.

When you're not using the cage, it collapses into six pieces which can be placed under a bed or in a closet.

Assembly is easy and takes about 15 minutes using the provided wench.

The cage is made up of six parts; top, bottom, front, back, right and left. With about a dozen bolts that screw the sides together, the cage is complete. It locks securely with a single padlock, not provided.

Dimensions are 48 inches long by 32 inches in height and 30 inches wide. Each cage is handmade by our talented blacksmith.

Our puppy cage is delivered to your door via UPS. Total weight is approximately 120 pounds. Cost of shipping is $78 in the Continental U.S.A.

Shipping notice. Due to the size of this product, we cannot ship to PO boxes. Please allow two weeks for delivery.

MS. PENZA: And was this the first item on that second purchase order we looked at?

MS. PENZA: And were you -- are you able -- because some of prices appear to be different, are you able to match them up by the item number?

SEAN WELCH: Yes, we go by the item number.

MS. PENZA: And the item numbers don't change?

SEAN WELCH: No, the item numbers do not change.

MS. PENZA: Moving on to Government Exhibit 863.

Is this an item called the Jail Cell?

MS. PENZA: And is this the same item number which is R1940 that appears in Government Exhibit 853 as the upright cage?

MS. PENZA: So the jail cell and the upright cage are the same?

MS. PENZA: Is that an image of a person in this?

MS. PENZA: And can you read the details on this.

SEAN WELCH: Sure.

Collapsible, full-sized jail cell. A true piece of dungeon furniture. This maximum security, collapsible cell is the best we have created. Assembly is easy and takes about 15 minutes using the provided wrench.

The cage is made up of six parts; top, bottom, front, back, right and left. A dozen bolts secure the sides together, and it locks securely with three padlocks, not included. The nuts are already welded to the cage for fast assembly and security.

When not using this cage, it collapses into six pieces which can be placed under a bed or in a closet for fast and convenient storage.

This cage comes equipped with three separate doors to gain access to certain areas while keeping the others locked. The cage can be positioned upright or can also be set horizontally. Made of one-inch square steel, heavy-duty bars that are securely mig-welded together.

Standard size is 6 feet 4 inches in height, 2 feet wide and 2 feet in depth. Total weight is approximately 150 pounds. The versatility, low shipping costs and maximum security design make this jail cell a rare find.

MS. PENZA: Okay. Thank you.

And so that was the number 2 item on the second purchase order, correct?

MS. PENZA: And moving on to Government Exhibit 864.

Is this the Good Boy Wireless Vibrating Remote Puppy Plug?

MS. PENZA: And that's the third item on the purchase order?

MS. PENZA: And can you read the details, please.

SEAN WELCH: Sure.

Make sure your puppy partner listens to your every command with this vibrating puppy plug. Formed in the shape of a puppy's tail, this butt plug is not only meant to make your partner into the little good puppy that they are, but it also features vibrations that you can send remotely from across the room. The plug fits comfortably, thanks to a bulbous head and contoured base. Let your partner parade around, give them commands. You can cycle through five different vibration modes.

MS. PENZA: Thank you.

And that was the third item in that order, in the second order?

MS. PENZA: I'm showing you what's in evidence as Government Exhibit 865.

Is this a Puppy Play Hood and Breathable Ball Gag?

MS. PENZA: And can you read the details for this, please.

SEAN WELCH: Make your pet crawl around like a bitch in heat. Turn your partner into your kinky little pet when you make them wear this puppy muzzle.

Complete with dog-like ears, this fit is perfect for puppy play enthusiasts. Leaving the eyes uncovered so that your pup sees everything you do. This mask also serves as a gag for your play thing. The breathable ball gag within the muzzle is perfect for shutting up your whining or barking dog, but is also removable so that he can hear every pant and howl. Designed for a comfortable, yet restrictive fit, each of the three straps is adjustable so that this mask can fit all-sized dogs.

MS. PENZA: That was item number 4 on the invoice?

MS. PENZA: And then turning to the final item, Government Exhibit 866.

Is this the last item that was on this second purchase order?

MS. PENZA: This is the Deluxe Bed Restraints Kit?

MS. PENZA: And can you read the details of it.

SEAN WELCH: Bind your lover to the bed for kinky delights.

Transform your bed into a devious piece of bondage furniture with this easy-to-use, under-the-bed restraint set. Strap your play thing into the adjustable and comfortably padded restraints at both sides of the bed.

Their wrists and ankles will be spread open, leaving your lover exposed and vulnerable to all the naughty things you have in store for them. Watch them writhe in pleasure and pain as you spank, tickle and fuck them.

They will love feeling helpless to your every desire. Locking buckles allow you to ensure they have a way to escape until you had your way.

Just slide the nylon straps under the bed and adjust them to fit any side bed. Adjust the cuff straps as needed and create the kinky atmosphere you've been waiting for.

MS. PENZA: That was the last item on the second order, correct?

MS. PENZA: And can you just read the total amount of that order?

SEAN WELCH: $1,730.90.

MS. PENZA: Thank you.

MS. PENZA: No further questions.

THE COURT: Cross-examination?

CrossCrossSean Welch — Cross Sean Welch Marc Agnifilo

CROSS-EXAMINATION BY MR. AGNIFILO:

MR. AGNIFILO: Good morning, sir.

My name is Marc Agnifilo. I represent Keith Raniere. I'm only going to ask you a few questions, okay?

SEAN WELCH: Okay. Yes.

MR. AGNIFILO: All right. In 13 years, you've sold thousands, tens of thousands of these sex toys to thousands or tens of thousands of people; fair to say?

SEAN WELCH: Yes, that's correct.

MR. AGNIFILO: It's a fairly thriving business, correct?

MR. AGNIFILO: No shortage of customers who seem to want these sort of items, correct?

MR. AGNIFILO: And it's absolutely 100 percent legal to sell all of the things we just talked about this morning, correct?

MR. AGNIFILO: And to your knowledge, it's 100 percent legal for the people who are buying these items to buy them from you, correct?

MR. AGNIFILO: And you're aware, are you not, that there's a community of sorts of people who choose to have sex or intimacy with some of these tools or toys, correct?

MR. AGNIFILO: How did your business change after June of 2011 when 50 Shades of Gray came out?

SEAN WELCH: We saw a slight bump.

MR. AGNIFILO: Just the slight bump?

SEAN WELCH: Yeah, just a slight bump.

MR. AGNIFILO: I have nothing further.

MS. PENZA: Brief redirect, Your Honor.

RedirectRedirectSean Welch — Redirect Sean Welch Moira Kim Penza

REDIRECT EXAMINATION BY MS. PENZA:

MS. PENZA: Mr. Welch, given your business, you have some familiarity with the Kink community?

SEAN WELCH: Some. Some.

MS. PENZA: And with the BDSM community?

SEAN WELCH: Yes, some.

MS. PENZA: Can you describe the importance of consent in that community?

SEAN WELCH: Consent is essential.

MS. PENZA: Okay. And does that mean knowing everything up front about what you're getting into?

MR. AGNIFILO: I object. This is --

MS. PENZA: He opened the door, Your Honor.

MR. AGNIFILO: -- beyond the scope of cross, sir.

THE COURT: Overruled.

Go ahead.

MS. PENZA: Sorry. You may answer the question.

MS. PENZA: Have you heard of safe words?

MS. PENZA: Okay. Can you explain what safe words are?

SEAN WELCH: Safe words are used whenever you get some play is happening so the other person can say if they've had enough and the play will stop.

MS. PENZA: So it's important to be able to make things stop, correct?

MS. PENZA: And have you heard the motto of the BDSM community, safe, sane and consensual?

MS. PENZA: No further questions, Your Honor.

MR. AGNIFILO: I have a few.

THE COURT: Go ahead.

RecrossRecrossSean Welch — Recross Sean Welch Marc Agnifilo

RECROSS-EXAMINATION BY MR. AGNIFILO:

MR. AGNIFILO: So you can be locked in the jail cell, and that would be consensual, correct?

SEAN WELCH: Yes, it can be.

MR. AGNIFILO: You could be strapped to a bed, and that could be consensual, right?

MR. AGNIFILO: All the things we talked about this morning can be done absolutely consensually, correct?

MR. AGNIFILO: And when done by adults consensually, it's absolutely legal and certainly not inappropriate; fair to say?

MR. AGNIFILO: Thank you.

MS. PENZA: No further questions, Your Honor.

THE COURT: All right.

The witness is excused. You may stand down.

(Whereupon, the witness steps down.)

MS. PENZA: Your Honor, may we just have a five-minute break.

THE COURT: Five-minute break.

We'll take a five-minute break and then we'll have the next witness.

Lunch is at 12:00, but now we're taking a five-minute break.

All rise for the jury.

(Jury exits the courtroom.)

THE COURT: All right. Five-minute break and have your next witness ready.

MS. PENZA: Thank you, Your Honor.

(Whereupon, a recess was taken at 11:32 a.m.)

THE COURT: All right.

(Defendant enters the courtroom.)

THE COURT: All right. Bring in the jury.

(Jury enters the courtroom.)

THE COURT: Please be seated.

The government may call its next witness.

MS. HAJJAR: Your Honor, may I offer certain exhibits with consent of counsel before calling the witness?

THE COURT: All right.

MS. HAJJAR: The government offers Exhibit Number 1, Government Exhibit Number 21, Government Exhibit Number 23, Number 25, Number 27, Number 40, 44, with consent of counsel.

MR. AGNIFILO: That's true, Judge.

THE COURT: All right. Exhibits 1, 21, 23, 25, 27, 40, 44 are received in evidence.

Please call your witness.

(Government Exhibits 1, 21, 23, 25, 27, 40, 44, were received in evidence.)

Continue to next page3.Lauren Salzman — Direct (Part 1)