qu??wMH 25L UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION UNITED STATES OF AMERICA, Plaintiff. I CASE NO. v. 1 15-CR-00454 DANIEL RUSH, Defendant. AUDIO TRANSCRIPTION OF FILE NO- THURSDAY, MARCH 13, 2014 BEHMKE REPORTING AND VIDEO SERVICES, INC. BY: CONNIE SILVA, CSR NO. 11460 160 SPEAR STREET, SUITE 300 SAN FRANCISCO, CALIFORNIA 94105 (415) 597-5600 BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597~5600 UNIDENTIFIED SPEAKER: Totally cool. UNIDENTIFIED SPEAKER: (Inaudible) know he's roaming around. DEREK PETERSON: Yeah, he's (inaudible) half an hour early. There?s another one too. UNIDENTIFIED SPEAKER: (Inaudible). DEREK PETERSON: Huh? UNIDENTIFIED SPEAKER: (Inaudible). DEREK PETERSON: I'm going to see if they cleared the room, right, first? UNIDENTIFIED SPEAKER: (Inaudible). DEREK PETERSON: Just in case. UNIDENTIFIED SPEAKER: It should be. DEREK PETERSON: I think they're still up there because he was asking about the cleaners. Actually, because of the narrative that you?re offering you actually spend time ingL.A. and -- UNIDENTIFIED SPEAKER: I was there (inaudible). DEREK PETERSON: Marina Del Rey. UNIDENTIFIED SPEAKER: Playa. DEREK PETERSON: Playa. Do you miss it or UNIDENTIFIED SPEAKER: Hell, no. DEREK PETERSON: UNIDENTIFIED SPEAKER: I miss the culture of it. DEREK PETERSON: Yeah. BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 537-5600 leaking refrigerators. DEREK PETERSON: Yeah. NARC TERBEEK: The refrigerator was leaking. DEREK PETERSON: The old leaking refrigerator. MARC TERBEEK: Three or four bedroom houses of electricity. DEREK PETERSON: So -- MARC TERBEEK: The leaking refrigerator. DANIEL RUSH: All I know is I did everything I could do for what was my member at the time. DEREK PETERSON: Yeah. DANIEL RUSH: And I had no idea that the scoundrel that member was. DEREK PETERSON: Yeah. RUSH: But at the time I had the, you know, reality of doing everything I could for him. DEREK PETERSON: Yeah. Yeah. DANIEL RUSH: So thank God, you know, other people were there to help out. DEREK PETERSON: Yeah. DANIEL RUSH: How do you explain all that? DEREK PETERSON: I don't know, I mean, so what I would like to do in a perfect world is make sure Martin understands all that that took place, because there was risk for you to do that. There was risk for you to do BEHMKE REPORTING AND VIDEO SERVICES, INC. 33 (415) 597?5600 . that, and it got us a facility which gave us first mover advantage and now we have got what we have got today because of it. MARC TERBEEK: Probably $150,000 in fees fighting that thing. DEREK PETERSON: Yeah. DANIEL RUSH: (Inaudible) Magnolia. DEREK PETERSON: Yeah. What was the Magnolia? DANIEL RUSH: Magnolia was trying to move in there too. I DEREK PETERSON: Oh, I didn't see, this is -- I didn't know that. Okay. DANIEL RUSH: That was another huge thing. Thank God it worked out for them, they got a different place. you know. DEREK PETERSON: Okay. _Well, so there a haircut and there' a discount for .thet_,- in my opinion. know what that dollar amount is. .And then I was . '11 off on this trajectory and it's the?vholig ?verit's'h'a'rd: to ?i?king stop him Like Salah tries ?Eb stop him. She's, Martin, just stag, stop. And 1 he just keeps going and going. His face gets red so he BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597?5600 84 just gets overly emotional about it. So the reality is is before I jump in with him. I got to be tactical and Surgical about it and that?s what I'm trying to do. 30 my opinion is, what YOU guys did deserves some sort of a haircut for what that amount is, and to me you helping us in other markets should take care of the rest. And I I think I can I'm saying this with 76.7 percent confidence that I think I can get it done, but I'm not 100 percent sure. and a lot of it just depends on if I approached it from the wrong angle, that's why I want to think about it heavily; You?re not under a super time crunch. MARC TERBEEK: That's why we started talking ahout this late January. early February. DANIEL RUSH: [Inaudib1e). MARC TERBEEK: And start inserting means and ideas, just saying for the next few months to put these means and ideas out there, a lot of the same candy. DEREK PETERSON: What can we -- so does everything that we just went over with the -- with you know (inaudible) I think he kind of quasi knows that, but not to the depths, but does he really understand you put your license at risk. MARC TERBEEK: No, no, he doesn't. I couldn't tell him at the time. He showed up at my house and said BEHMKE REPORTING AND VIDEO SERVICES, INC. BS [415) 597~5600 'why don?t you just throw this guy under the bus. And I was trying to tell him in this sort of coded way, dude, I could keep this tied up for two and a half years in litigation. DEREK PETERSON: Yeah. DANIEL RUSH: The red face couldn?t hear it. DEREK PETERSON: The what? DANIEL RUSH: The red face couldn't hear it. it MARC But you understand that if there's rthis conflict upon somehow conflicted out. and then 'finally that?s when you stepped in and got Salah to tee' .up the conflict. that was entirely of my own invention. DEREK PETERSON: Yeah. MARC TERBEEK: That I was able to (inaudible) Carl if they do this thing you're fucked. DEREK PETERSON: Yeah. Yeah. DANIEL RUSH: All I knew is I had one guy running around trying to make up stories to the feds and, you know, trying to make up bullshit and put us all in bad situation. DEREK PETERSON: But the fact that you passed that on'to city hall and whoever over there was risk for you and he needs to understand that. DANIEL RUSH: It was risk. It was risk to BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 86 DEREK PETERSON: Sisco. MARC TERBEEK: Nevada state legislature? DEREK PETERSON: No chairman here in Novada. MARC TERBEEK: Oh, the state legislature or department. DEREK PETERSON: I thought -- I got it in my text. Hot chairman, this is why I'm so terrible in ?clitics. Not a council member, what's the equivalent to a council member for the county level. MARC TERBEEK: Commissioner. DEREK PETERSON: Commissioner Syscolo. MARC Syscolo. . DEREK PETERSON: Okay. That's Ithat's -- I th think Wednesday or Thursday I'm meeting with Commissioner Syscolo and a couple of the other commissioners. Rebecca has them lined up. DANIEL RUSH: Now, that's great that you?re having access there. That's a good conversation to have. MARC TERBEEK: (Inaudible) hotel room in the world where you got a smoke detector in the fucking bathroom there. DEREK PETERSON: Oh, sorry, and no balcony. MARC I'm going in the thing -- I'm looking at the smoke detector going fuck. DEREK PETERSON: (Inaudible) let's power through BEHMKE REPORTING AND VIDEO SERVICES, INC. 113 (415) 597- 5600 11 DEREK PETERSON: I don't want it e?mailed either. 12 . MARC TERBEEK: Exactly. It will be exactly. 13 It will be a detailed memo. Go ahead. 14 DANIEL RUSH: Here's the reality. 13 DEREK PETERSON: I Rhow. 19 . 20 . 21 DEREK PETERSON: Okay. 22 DANIEL RUSH: If he wants to give me 23 consideration for that. thanks. . - 24 5 {So here a gaing to be one of the 25 ,ithat Hesse: going to run into: he?s going BEHMKE REPORTING AND VIDEO SERVICES, INC. 114 [415) 597-5600