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1 Q The funds owed to who?
2 A The users of the EMC website.
3 Q And can you describe the EMZ website?
4 A It's the mining pool, the website of the mining
5 pool, the Eclipse mining pool.
6 MR. PERRY: Just so we're clear, are we
T using the same initials, is it EMC?
8 THE WITNESS: C.
9 MR. PERRY: EMC as in cat. I think I
10 heard something other than that from your end.
11 Just want to make sure everybody is on the same
12 page.
13 MS. MITHAL: You're right, I heard EMZ
14 but it's EMC as in cat?
15 Echo Mike Charlie.
16 Q (By Ms. Mithal) Okay. Thank you. So how was
17 that wallet funded?
18 A It's funded through mining.
19 Q What type of mining, who does the mining?
20 A The users.
21 Q So could you describe which users fund the wallets
22 through mining?
23 A All of them.
24 Who are the users?
25 A I don't know.
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Are they customers?

2 A No -- some of them probably are but I wouldn't
3 know.
4 Q Do you have any idea who else the other miners
5 would be?
6 A No.
? Q And is this -- is this being used for pool mining?
8 A It is pool mining.
9 Q Okay. How do you know about it?
10 A How do I know about what?
11 Q About the EMC wallet?
12 A Because it's our pool.
13 MR. PERRY: I think a little bit of
14 background would be helpful on this so I would ask
15 some background questions to determine how it's
16 related to Butterfly Labs.
17 Q (By Ms. Mithal) Okay, can you tell me,
18 Mr. Zerlan, how this wallet is related -- how EMC
19 mining is related to Butterfly Labs?
20 A Butterfly Labs purchased EMC in 2012.
21 Q And what is EMC?
22 A The Eclipse Mining Consortium.
23 Q And what is that?
24 A It's a mining pool for bit coins.
25 Q And what was the purpose of that purchase?
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1 A As an intellectual property purchase.

2 Q And is that used to provide any products to

3 customers?

4 A It provides a service.

5 Q And what is the service?

6 A Mining pool.

a Q And do consumers enter into contracts for these
8 services?

9 A No.

10 Q So how do consumers obtain anything using these

11 services?

12 MR. PERRY: And, again, we're getting a
13 little bit off the topic of the location of the
14 assets of the company. We're getting into

15 contractual relationships with people.

16 I would say it's getting pretty far so
17 if you can maybe narrow that back into the proper
18 scope I'd appreciate it.

19 Q (By Ms. Mithal) Okay, so this is -- this is an
20 EMC hot wallet account that -- wallet that we're
21 talking about; correct?

22 A Yes.

23 Q So it includes funds owed to users?

24 A Yes.

25 Q And the users include consumers but could include

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other people as well; is that correct party?
MR. PERRY: I'm going to object to the

characterization of that question. I believe he

4 does not know who the users are to that pool.
5 MS. MITHAL: Okay, just give me one
6 second. I'm going to mute you for one second.
7 Q (By Ms. Mithal) Who all has access to the EMC hot
8 wallet?
9 A Just myself as far as I know.
10 And do you know the approximate value of what's in
11 that wallet?
12 A It fluctuates greatly on a daily basis. Last I
13 checked approximately 70 bit coins.
14 Q And has that been turned over to the receiver?
15 A No.
16 Q And why is that?
17 A Because it would cripple the operations and
18 there's no way to turn it over physically.
19 Q Is there a way to give the receiver access to it?
20 A Yes.
21 Q And has that been done?
22 A We've discussed it.
23 Q Who has discussed it?
24 MR. PERRY: He can answer the question
25 but did you discuss that with legal counsel and
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the receiver to the best of your knowledge or has

2 someone?
3 THE WITNESS: Yes.
4 MR. THOMAS: Incidentally, Malini, the
5 receiver is here now, has entered a few minutes
6 ago.
7 Q (By Ms. Mithal) Okay, and so the EMC hot wallet,
8 have you discussed that with the receiver?
9 A Yes.
10 Q And one second. Does Butterfly Labs own EMC?
11 A Yes.
12 Q And does EMC -- sorry, let me rephrase.
13 What was the EMC wallet used for?
14 A The hot wallet?
15 Q Yes.
16 A For paying the users who used the pool.
17 Q Okay. Let's move on to the next wallet.
18 A The next wallet is the EMC cold wallet.
19 Q And can you describe that?
20 A It's similar to the hot wallet but contains the
21 coins that are not online so that if the hot
22 wallet were to be compromised all of the funds
23 would not be able to be taken.
24 Q And who has access to that?
25 I. do.
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And how is that funded?

From the hot wallet.

And how's the hot wallet funded?

From users mining.

Okay. And who else has access to the cold wallet?
Nobody .

And how much is in the cold wallet?

uw
r Oo PrP Oo PrP OO PP oO

I don't recall an exact figure, approximately was
9 it 896?

896 bit coins?

BP
°
10

11 A I believe so.

12 Q Where is it now or who has access to the wallet

13 now?

14 A I do.

15 Q That has not been turned over to the receiver?
16 A It has not.

17 Q Why not?

18 A They don't have provisions to accept it.

19 Q When was the last time you used that wallet?
20 A A very long time ago.

21 Q And what is the next wallet?

22 MR. PERRY: You said seven early on.
23 We're at No. 6 now. The EMC cold wallet was
24 No. 6%

25 Do you recall any other wallets besides

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1 active wallet, storage wallet, expense wallet,
2 advertising wallet, EMC hot wallet or EMC cold
3 wallet?
4 A I believe Dave had an expense wallet.
5 Q (By Ms. Mithal) And who is Dave?
6 A Dave McClain, he's our account manager.
7 Q And was that wallet for Dave's expenses?
8 A Yes.
9 Q And were they business related expenses?
10 A I don't know.
11 Q Do you know how that wallet was funded?
12 A I do not.
13 Q Do you know who all had access to that wallet?
14 A I do not.
15 Q And do you know the amount that was in that wallet
16 at any time?
Ly I do not.
18 Do you know if that wallet has been turned over to
19 the receiver?
20 A I do not.
21 MS. MITHAL: Let's take a five-minute
22 break if that's okay with everybody?
23 MR. PERRY: Sure, just for planning
24 purposes do you have an expectation of length of
25 time?
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MS. MITHAL: Let me see. You know, I
actually don't have a good estimation. I'm sorry
about that. I think it could be anywhere from a

couple of hours to we might need to continue

5 tomorrow, but I'm hoping that's not going to

6 happen, but I might have a better sense after we

7 get through the next section.

8 MR. PERRY: Okay.

9 (A BRIEF BREAK WAS TAKEN AT THIS TIME.)
10 MR. LAMER: This is Bryant Lamer,

11 counsel for the receiver, and I just wanted to

12 give you a little background with respect to the
13 hot and cold wallets and the overall storage of

14 the overall wallet protocol issue that you were

15 getting at.

16 It is true that we are not in possession
AST: of one of these wallet -- two of these wallets,

18 the cold and hot storage wallet, because they are
19 off site off of our location at another location
20 controlled by BFL Labs where servers are.

21 Apparently there are two separate servers, okay.
22 MS. MITHAL: Okay.

23 MR. LAMER: The access to those is

24 controlled, as you would know, by a private key,
25 okay. And we are working with two things that you
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1 should know. First, we are working with the judge
2 to come to a process by which the assets from the
3 bit coin and the various wallets will be
4 transferred over to a wallet controlled by the
5 Court. That has not happened and that will not
6 happen until after Monday's hearing; okay.
7 In the interim what we are challenged
8 with is confirming security of those private keys.
9 And that is partially conducted by actually
10 obtaining access to a cold storage device like a
11 laptop that contains a private key or other
12 passwords that would allow us to get to that bit
13 coin wallet. We are in possession of the storage
14 wallet that contains roughly 98 percent of the
15 total funds.
16 With respect to the hot wallet and the
17 cold wallet for EMC, like I said at the top of
18 this, we don't have that yet.
19 Josh Zerlan has agreed that what he is
20 doing, what he will do after this, is he's going
21 to come to a process by which he's going to get us
22 the private key and that will be contained and
23 stored in our vault at our bank until after
24 Monday's hearing, okay.
25 MS. MITHAL: Okay.

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1 MR. LAMER: Judge is aware that without
2 complete transfer to a separate wallet that's
3 controlled overall by the Court there is always a
4 risk that there will be transfers out of these
5 wallets.
6 With that said, we've asked Josh to make
7 a record to the extent that his counsel will let
8 him concerning his agreement that he will not be
9 transferring anything, any bit coins, out of any
10 of the wallets that he is in charge of or
11 otherwise possesses rights to.
12 Is that fair, Josh?
13 THE WITNESS: Yes, now, the hot wallet,
14 like I said, funds go in and out of that
15 automatically by the users.
16 MR. LAMER: Understand you don't control
17 that.
18 THE WITNESS: Yeah, I don't send funds
19 out of it.
20 MR. PERRY: To the extent you control
21 any transactions to those wallets you are -- you
22 have confirmed with counsel for the receiver that
23 you will not be making any transfers from or to
24 any wallet; correct?
25 THE WITNESS: Correct.
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MR. LAMER: That's all I have on it. If

2 you guys have any questions, happy to answer them;

3 okay.

4 MS. MITHAL: Okay, thank you so much.

5 Very helpful.

6 MR. LAMER: No problem.

7 (By Ms. Mithal) So just a few more questions

8 about these bit coin wallets.

9 Can you give me the bit coin wallet

10 addresses associated with each wallet?

11 Could I? I could but that would list hundreds of
12 thousands of addresses.

13 Okay, and have you given that information to the
14 receiver?

15 We have discussed it.

16 Okay, and if you have not given that information
17 to the receiver will you be giving the information
18 to the receiver?

19 If they wish it.

20 Okay. So we talked about the value or the amount
21 of the bit coins in each wallet.

22 Can you tell me the values that you told
23 me about, is there any point at which the values
24 in the wallets were much higher that you're aware
25 of?
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1 A No.

2 Q All right. Let's move onto other virtual

3 currencies.
4 Did Butterfly Labs have any other
5 virtual currency accounts?

6 A No, not to my knowledge.

a Q And do you know of any corporations, partnerships
8 or business entities in which Butterfly Labs has
9 an ownership interest?

10 A No.

11 Q And this is going back to another section, but

12 Mr. Zerlan, do you have any ownership interest in
13 the company?

14 A No.

15 Q And what about EMC, is it purchased EMC; is that
16 correct?

17 A Correct.

18 Q Does Butterfly Labs use outside accountants?

19 A I don't know.

20 Q Okay. And who at Butterfly Labs is responsible
21 for keeping the corporation's financial books and
22 records?

23 A I'm not sure.
24 Q Can you tell me about all pending lawsuits that

25 have been filed by the corporation in court or

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before an administrative agency?

2 A No.

3 Q Do you know of any?

4 A I do.

5 Q But you cannot tell me about them? Can you tell

6 me about any of them?

7 A Not really, no.

8 Q Why not?

9 A I don't know anything about them.

10 Q Okay, can you tell me the names or anything about
11 those actions?

12 A I believe the only ones I know of by name are

13 Woodlawn and Messner (ph).

14 Q And do you have any idea about the nature of those
15 actions?

16 A Not the specifics.

17 Even generalities?

18 A I believe the Messner case is --

19 MR. PERRY: I'm going to, again, stop
20 you. We're talking about assets to assist the

21 receiver and identifying and controlling those

22 assets pursuant to the TRO. I'11 let you ask the
23 question but you got to tell me why.

24 MS. MITHAL: Sure, so I want to make

25 sure that if there is other information and other
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court proceedings about other assets that we're

aware of them or if there are amounts owed to

3 Butterfly Labs as a result of other actions I want
4 to know about that.
5 MR. PERRY: You're asking about the
6 nature of the lawsuits which don't relate to the
7 fact that he knows a lawsuit exists, so you know,
8 I'll let you ask but I don't know -- I think this
9 could be the a big waste of time, but go ahead.
10 I believe the Messner case is about hardware that
i1 he did not receive and the Woodlawn case, I think,
12 is similar.
13 MR. PERRY: Just to put on the record
14 those are pending -- that's pending litigation
15 what has not been resolved one way or the other in
16 a court of law.
Li (By Ms. Mithal) And so I had asked about actions
18 by the company.
19 Were those actions against the company?
20 I'm not sure I understand the distinction.
21 MR. PERRY: So I'm going to fast forward
22 this. Those are -- I believe that's the class
23 action and the plaintiffs and the single
24 plaintiff's claim against the company.
25 Are you asking for actions the company
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1 has taken against other entities?

2 MS. MITHAL: That's correct.

3 MR. PERRY: Are you aware of any actions
4 taken by Butterfly Labs against any entities?

5 THE WITNESS: I am not.

6 MS. MITHAL: Okay.

7 MR. PERRY: Sorry, I was confused there
8 so apologize for that.

9 MS. MITHAL: No, thank you.

10 Q (By Ms. Mithal) So are you aware of any monetary
11 judgments or settlements owed to Butterfly Labs?

12 A I am not.

13 Q Are you aware of monetary judgments or settlements
14 owed by Butterfly Labs?

15 A No.

16 Q Are there any state or federal bankruptcy

17 proceedings involving the corporation?

18 A Not to my knowledge.

19 Q Do you know if Butterfly Labs has any safe deposit
20 boxes?

21 A I do not.

22 Q Does Butterfly Labs have any U.S. government

23 securities such as savings bonds, treasury bills
24 and treasury notes?

25 A I don't know.

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1 Q And who would know the answer to that question?
2 A I would not know.

3 Q And who would know the answer to questions about

4 other questions about Butterfly Labs bank

5 accounts? Who would have that information?

6 A Presumably Sonny.

7 Q Anyone else?

8 A Possibly Dave or Jody.

9 Q And that's Dave McClain?

10 A Yes, or Jody Drake.

11 Q And Jody Drake, okay, thank you.

12 Does Butterfly Labs own or control any
13 publicly-listed securities including stocks?

14 A Not to my knowledge.

15 Q And can you list all the real estate held by the
16 corporation?

17 A No.

18 Q Can you list any real estate held by the

19 corporation?

20 A No.

a1 Q Do you know if the corporation owns the address in
22 Kansas city that the receiver took over last week?
23 A We do not.

24 Q You're renting that?

25 A Yes.

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1 Q And you're not aware of any other real estate
2 owned by the company -- sorry, any real estate
3 owned by the company.
4 Are there any persons or entities
5 holding funds or other assets in escrow or in
6 trust for the corporation?
7 A I don't know.
8 And are you aware of any other assets that are
9 held by the corporation that we have not
10 discussed?
11 A Not to my knowledge.
12 Q Any furniture?
13 A Whatever is in our office.
14 Q And what's in your office?
15 MR. PERRY: Do you know if that's owned
16 or anything by the company?
17 THE WITNESS: I have no idea.
18 Q (By Ms. Mithal) Okay, and is that basic office
19 furniture?
20 A Yes.
21 Anything -- anything aside from, you know, basic
22 laptops and desks and things like that?
23 A No.
24 Any kind of art on the walls or things like that?
25 A Yes, there is some art on the walls.
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i Q And is it art that would be valued, if you are
2 aware, that it would be valued at a high amount?

3 A I would have no idea.

4 MR. PERRY: Do you know if the company

5 owns that art?

6 THE WITNESS: Me?

7 MR. PERRY: Yes.

8 THE WITNESS: I don't know.

9 MR. PERRY: I think you skipped a step
10 there for lack of foundation. He's not aware that
11 the company owns the art. He just knows there's
12 art.

13 Q (By Ms. Mithal) Okay, does the company own any

14 vehicles?

15 A I don't know.

16 Q Any computer software?

17 A Yes.

18 Q What type of computer software?

19 A I believe we own our inventory software and our
20 shopping cart software although I suppose

21 technically it's licensed not owned.

22 Q Does the company own any patents?
23 A Not to my knowledge.
24 Q Does the company own any other intellectual

25 property?

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Be Not to my knowledge.
2 Q And do you have any facilities off site, any
3 storage facilities?
4 A We have leased one warehouse.
5 Q And what is in that warehouse?
6 A I don't know.
7 Q Have you ever been to the warehouse?
8 A I have not.
9 Q How do you know about it?
10 A I've heard people talk about it and I know we send
11 some of our old equipment there and bring new
12 equipment from there.
13 Q Where is it?
14 A I don't know. We call it the Widmere facility.
15 Q The Wigner facility?
16 A Widmere.
17 MR. PERRY: W-I-D-M-E-R-E; is that
18 right?
19 THE WITNESS: I think so, I don't know.
20 Q (By Ms. Mithal) Ahs the receiver been there, to
21 your knowledge?
22 A I don't know.
23 What is the first time you heard or learned about
24 the FTC actions against Butterfly Labs?
25 A On Friday.
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1 Q And who did you hear about the action from?
2 A From Sonny.
3 And did you see a copy of the Temporary
4 Restraining Order that was issued by the district
5 judge?
6 A At that time?
7 Q Yes.
8 A No.
9 Q Have you seen it since then?
10 A I have seen the ex parte order.
11 Q Okay. Are you aware of anyone using any corporate
12 funds after the order was issued?
13 I am not.
14 Are you aware of anyone violating the Court order
15 in any way after it was issued?
16 A I am not.
L7 MS. MITHAL: We're actually nearing the
18 end of my questions. Could we take another five
19 minute break?
20 MR. PERRY: One second.
21 MR. LAMER: Yes, we can take a
22 five-minute break.
23 MR. PERRY: Call us back in five.
24 (A BRIEF BREAK WAS TAKEN AT THIS TIME.)
25 MS. MITHAL: Peter and Malini here.
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1 Q (By Ms. Mithal) Okay, Mr. Zerlan, are you in

2 possession of any Butterfly Labs property

3 currently?

4 A I have one laptop.

5 Q Okay. And does that laptop contain files about
6 the company?

7 A No.

8 Q What information does that laptop contain?

9 MR. PERRY: I think we're getting past
10 the point of an asset. He mentioned that he has
11 possession of a Butterfly Labs asset.

12 Q (By Ms. Mithal) Okay, and does the laptop -- hang
13 on one second.

14 Does the laptop contain any information
15 about bit coin wallets or where they are stored or
16 anything like that?

No.

How much is the laptop worth?

I have no idea.

How old is the laptop?

About a year old.

And do you have any other Butterfly Labs property?

No.

N
oO
0 rp 0 PrP Oo FP O PP

You had mentioned that you did get one mining

25 machine from the company; is that right?

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1 A No, I received one set of miners from the company.
2 Q Say that again, Mr. Zerlan, I apologize.

3 A I received one set of miners from the company.

4 Q Could you describe what one set of miners means?

5 A I believe it was a set of 10 BFL singles.

6 Q And what's a BFL single?

A The 65 nanometer 60 gigahash mining divisions that
8 we manufacture.

9 Q And when did you manufacture those?

10 A I have no idea.

11 Q Was that also referred to as a bit force or is

12 that incorrect?

13 A Our entire line is referred to as a bit force.

14 Q Okay. So when did you receive that set of miners?
5 A I don't recall.

16 Q And you said you were able to mine for bit coins
17 using it?

Yes.
Where did you mine for those bit coins?
Can you elaborate?

A
Q
A
21 Q Did you do it at the office?
A
Q
A

22 No.

23 Did you do it outside of Butterfly Labs property?

24 Yes.

25 Q And did you -- the bit coins you received from

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mining, did you return them to the company?

2 A No.
3 So they were part of your compensation and you
4 kept them?
5 A Yes.
6 Q And about how much were you able to mine?
7 A Maybe tenor 15 bit coins.
8 Q And when was that, over what time period?
9 A From when I received them until approximately June
10 or July of this year.
11 Q And do you have an approximate estimation of about
12 how long were mining for bit coins using the
13 miners?
14 MR. PERRY: Again, that's beyond the
15 scope of this TRO.
16 Q (By Ms. Mithal) Where is the machine now?
17 A Probably in Widmere facility.
18 Q Okay. And why is that?
19 A Because I took them off line and returned them to
20 the office.
21 Q And why is that?
22 A Because I did not want to run them any more.
23 Q And that was in June or July of this year?
24 A I believe so.
25 Q Were they still able to mine for bit coins?
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1 MR. PERRY: Again, we're beyond the
2 scope of this TRO. You can ask where the machines
3 are.
4 MS. MITHAL: Okay. And I think that
5 might be all -- okay. Then I think that
6 concludes -- actually one more second. I'1l mute
7 for one second.
8 MR. PERRY: Sure, we're going to have
9 the opportunity to ask some clarifying questions;
10 correct?
11 MS. MITHAL: Yes. Okay, that concludes
12 our direct questions. I can turn it over to your
13 counsel.
14 MR. PERRY: I have nothing at this point
15 in time. I believe the receiver or receiver's
16 counsel might have a few questions.
17 MS. MITHAL: Okay.
18 CROSS - EXAMINATION
18 BY MR. JOHNSON
20 Q This is Eric Johnson. Mr. Zerlan, you said you'd
a1 never been to the Widmere location?
22 A Correct.
23 Do you have personal property at the Widmere
24 location, though?
25 A I believe I may have a saw at that location, a
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table saw.

2 Q Okay. And this set of miners, I think you also

3 said, maybe at Widmere but you weren't sure?

4 A Correct.

5 Q How many are in a set?

6 A There's no specific number.

7 Q Okay. So when you say a set of miners, when I go

8 in and I look at on the shelf the different

9 products?

10 A They are if you think I believe. They won't be
11 labeled. I had never intended to get them back.
12 Q Okay. So they are somewhere at Widmere?

13 A I left them in the office to be, but wherever the
14 miners go.

15 Q And you may have covered this before I attended
16 but were those given to you as compensation,

17 loaned out to you?

18 A Given to me as compensation.

19 Q Okay. With respect to the firearms that have been
20 located on the premises, what is the make of the
21 pistol that goes currently in the gun safe?

22 A Sig Sauer Navy, I believe it's a 229, might be a
23 226, .9mm.

24 Q Is that licensed?

25 A Yes.
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1 Is it licensed under your name?
2 A Yes.
3 Q And you had mentioned another firearm that was
4 purchased?
5 A Yes.
6 Q And where is the current location of that?
7 A At my home.
8 Q Okay, and how is that secured at your home?
9 A In the a gun safe.
10 Q Does anybody else have access to that gun safe?
12 A My wife.
12 Q Your wife, and how do you have it secured, by key,
13 thumb print?
14 A A six digit code.
15 Q Six digit code and you and your wife are the only
16 ones with that six digit code?
17 A Yes.
18 Q What type of firearm is that?
Ls A Tes. an. AR 15.
20 Q And what type of handgun is that?
21 A It's a rifle.
22 Q Rifle, and is that licensed?
23 A Yes.
24 Q Where is your -- may have said this, where are you
25 currently residing?
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1 In Olathe.
2 I'm not a firearms expert, is that automatic,
3 semiautomatic rifle?
4 Semiautomatic.
5 Semiautomatic. Once again, that was purchased
6 with company funds?
7 Yes.
8 I'd ask that that code be, you know, I'm not --
9 we'll talk about the delivery and securitization
10 of that other firearm.
Li Okay.
12 And the proper way of doing that.
13 That's my only real follow-up questions
14 unless my counsel has something.
15 MR. LAMER: Nothing.
16 MR. PERRY: Charles?
“7 MR. THOMAS: No, no questions.
18 MR. PERRY: I think that wraps it up on
19 our side.
20 Anything following up the receiver's
21 questions?
22 MS. MITHAL: No, nothing from the FTC.
23 MR. THOMAS: Let's resolve what to do
24 with -- how many exhibits did we use?
25 MR. PERRY: I believe you only used one;
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1 correct, the AAJ?

2 MS. MITHAL: That's correct.

3 MR. THOMAS: Would you like me to keep

4 that here, the original exhibit, Malini.

5 MS. MITHAL: Let me ask Teresa. She

6 just walked in. Exhibit AAJ, do you need that for

7 the next deposition or the other one? So yes,

8 please keep that, Charles, thank you.

9 MR. PERRY: These exhibits are exhibits
10 to the declaration by your investigator; correct?
11 MS. MITHAL: Yes.

12 MR. PERRY: And the TRO obviously, okay.
13 MR. THOMAS: This is marked as AAJ was
14 marked as Exhibit 2. Just says Exhibit, doesn't
15 say what deposition?

16 MR. PERRY: No.

17 MR. THOMAS: I think we made copies of
18 these for each deposition.

19 MS. MITHAL: Are you asking about AAJ

20 and AAI?

21 MR. THOMAS: I think for clarification
22 we might want to put the name of the deponent on
23 there, on the one that was used.

24 MS. MITHAL: Okay. We can do that.

25 MR. PERRY: We'll leave the exhibits
John M. Bowen & Associates 911 Main Street, Suite 1930 Page: 68
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1 here. We don't need them.

2 (OFF-THE-RECORD DISCUSSION. )

3 kK ek kK kK

25

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(816) 421-2876 Kansas City, MO 64105

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Page: 1

20 Filed 09/27/14 Page 30 of 40

Federal Trade Commission vs. BF Labs

Josh Zerlan

9/25/2014

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John M. Bowen & Associates

911 Main Street, Suite 1930

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Josh Zerlan

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John M. Bowen & Associates

911 Main Street, Suite 1930

Page: 4

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Josh Zerlan

9/25/2014

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<H>

half 20:7
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Hang 31:8, 23
61:12

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37:2 48:6 49:6
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5 14:7, 8, 10, 15,
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hotel 21:79
hours 48:4
house 16:22
ZEAL

how's 46:3
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<I>

idea 35:17, 12, 25
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IDENTIFICATION
3:2 34:16
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INC, -2:1,1

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investigator 68:70
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55217

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items 23:7, 8
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<J>

Jackson -2:7

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13:6 14:1 26:16

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14,20 7:6 9:25

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com 9:72
(@cowmail.org

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13

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<K>
K01-12-0509 7:25
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2:1,1 7:19 8:24
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8

keeping 52:27
KENNYHERTZ 2:1
kept 63:4

key 48:24 49:71,
22 66:12

keys 49:8

kill 26:24, 25
kind 12:4, 9
28:17 35:25

John M. Bowen & Associates

911 Main Street, Suite 1930

Page: 5

(816)229e28764-cv-00815-BCW DoKensencd?-R00 led 09/27/14 Page 34 of 40

Federal Trade Commission vs. BF Labs

Josh Zerlan

9/25/2014

57:24

kinds 23:7, 8
knocking 19:23
know 6:73 9:15,
21 10:22 11:22
12:6 13:16 16:6
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<L>

Lab 14:24 18:6
20:4

labeled 65:17
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59:24 61:2, 11, 22
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lack 58:10
Lamberton 3:9
12:21, 21

Lamer 13:5, 5
48:10, 10, 23 50:1,
16 51:1,6 60:27
67:15

laptop 32:19
49:11 61:4, 5, 8,
12, 14, 18, 20
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law -2:1 54:16
lawsuit 54:7
lawsuits 52:24
54:6

lay 4:20
learned 59:23
leased 59:4
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left 25:9 65:13
legal 36:6 44:25
length 47:24
letting 6:73
liaison 11:73
license 7:76, 20,
23

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65:24 66:1, 22
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limited 34:12
line 62:73 63:19
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little 34:17, 14
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loaned 65:17
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located 31:27
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location 34:16
43:13 48:19, 19
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lodging 21:18
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long 8:25 9:7
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<M>

machine 33:27
61:25 63:16
machines 34:7
35:5 64:2
Mailstop -2:7
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50:23

Malini -2:1 3:7
12:19 45:4 60:25
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manager 47:6
manufacture
33:18 62:8, 9
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33:22

March 10:15
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16

matter 3:4 4:16

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56:9

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Messner 53:73,

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mind 23:25 34:4
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19 63:6, 25
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Mining 12:5
14:10, 11, 15, 16,
22 15:10 33:6, 9,
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Monarch 15:20,
21,22 16:1, 4, 7, 9,

John M. Bowen & Associates

911 Main Street, Suite 1930

Page: 6

(816)431-297F 4 cv-00815-BCW Ddetiiet SSP $4180 09/27/14 Page 35 of 40

Federal Trade Commission vs. BF Labs

Josh Zerlan

9/25/2014

12, 16

Monday 16:5
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13

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<N>
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<O>

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<P>

page 4:23 24:4, 5,
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60:25

John M. Bowen & Associates

911 Main Street, Suite 1930

Page: 7

(816)\¢@9e287K4A-cv-00815-BCW Dokansanta?-200 Gilead 09/27/14 Page 36 of 40

Federal Trade Commission vs. BF Labs Josh Zerlan 9/25/2014
ph 53:13 probably 32:3 34:13 53:22 53:21 56:22
phone 10:2 33:8 42:2 63:17 put 54:73 68:22 59:20 64:15

phrase 33:73
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<Q>

question 5:7, 17,
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<R>

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34:6

represented 3:25
17:4

requested 40:8
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resolved 54:75

John M. Bowen & Associates

911 Main Street, Suite 1930

Page: 8

(816)4a$28764-cv-00815-BCW Dd€amerntit2-2M iléd 09/27/14 Page 37 of 40

Federal Trade Commission vs. BF Labs

Josh Zerlan

9/25/2014

respect 48:12
49:16 65:19
responsibilities
11:10
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Restraining 34:13
60:4

result 54:3
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returned 63:79
revenue 33:6, 9

rules 4:27 13:15
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Ryan 7:2
R-Y-A-N 7:2

<S>

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55:19 65:21 66:9,
10

salary 16:15
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50:2

September -2:7
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13

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46:22

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roughly 37:22 40:9 31:6 34:21 36:16 14:7,9,12 15:9,
49:14 separate 48:27 40:18 45:12 48:2 | 21
John M. Bowen & Associates 911 Main Street, Suite 1930 Page: 9

(816) 421-2876

Kansas City, MO 64105
Case 4:14-cv-00815-BCW Document 42-20 Filed 09/27/14 Page 38 of 40

Federal Trade Commission vs. BF Labs Josh Zerlan 9/25/2014
sure 4:22 5:3 Thank 21:72 TRADE -2:7, 1,17 8:7
19:24 23:9 29:21 24:2 31:3, 6 3:9,117 12:20 unrelated 11:75

33:7, 16 36:13
41:11 47:23
§2:23 53:24, 25
54:20 64:8 65:3
swept 36:24
switch 6:12
sworn -2:7 3:27
systems 14:3

<T>

table 65:7

take 12:11 23:23
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60:78, 27
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taken 45:23 48:9
55:1,4 60:24
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17:16 25:24
59:10 67:9
talked 13:15
16:15, 16 17:11
37:15 51:20
talking 14:5
30:23 34:9 43:27
53:20

taxes 11:24
technical 14:2
technically 58:27
telephone 6:9
10:4

tell 8:72 13:22
31:20 42:17
51:22 52:24 53:5,
5; 10, 23
Temporary 34:13
60:3

tenor 63:7
Teresa 68:5
Terrace 8:24 9:3
test 33:75, 17, 19,
20, 22

testified 3:27
testify 5:20 6:7,
23

testimony 5:24
6:2 34:18

32:16 34:18, 19
41:16 51:4 55:9
56:17 68:8
thing 13:15
20:23 26:25
things 33:7, 8
48:25 57:22, 24
think 11:23
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38:15 41:9 42:13
48:3 54:8, 17
58:9 59:19 61:9
64:4,5 65:2, 10
67:18 68:17, 27
Thomas -2:1
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45:4 67:17, 23
68:3, 13, 17, 21
thousands 51:72
threats 26:27, 22
three 8:73, 13
24:23

thumb 66:73
Thursday -2:7
tickets 21:19
time 11:7 12:7
17:1 26:17 37:20,
25 38:6, 17, 18, 27,
23 39:9 40:17, 2
46:19, 20 47:16,
25 48:9 54:9
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63:8 64:15
timeframe 16:77
times 4:10

title 11:2, 4
today 4:5 5:22,
24 6:7, 16, 18, 27
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today's 17:2
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tomorrow 48:5
top 8:78 25:12,
19 49:17

topic 43:13
total 49:75

transactions 50:27
transcribe 5:2
transfer 50:2
transferred 49:4
transferring 50:9
transfers 50:4, 23
travel 21:20
traveled 8:7
treasury 55:23, 24
trips 8:19

TRO 35:2 53:22
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true 48:76

trust 57:6
truthfully 5:27
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Try 5:4

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turned 28:4
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Various 23:8
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vehicles 58:14
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versus 3:4
video 6:12
violating 60:14
Violent 26:13, 20
virtual 52:2, 5
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(sioheReoa ye oy DOSES BOW DogyHuancae: eb Eli 09/27/14 Page 39 of 40 Paee: 10

Federal Trade Commission vs. BF Labs

Josh Zerlan

9/25/2014

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51:8, 24 61:15
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42:18 49:19
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Z-E-R-L-A-N 7:3

(816)

nsas

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