Forensic Accounting

Case Study
Refer to Reed Slatkin’s fraud case, the SEC conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these are available online:

(Depo 1)

(Depo 2)

In reference the above two depositions, please answer the below questions:

Note: All page numbers refer to Depo 1 except as individually noted.

1. Page 2. Another vital aspect of deposition is subpoena duces tecum, a written order that commands an individual or organization to produce case-related documents, which will often be used as evidence in the deposition or trial and are usually called exhibits. What two exhibits are presented in this deposition?

2. Depo 2, Page 2. Compare the number of exhibits used in Depo 1 to the number used in Depo 2. By the nature of the exhibits listed for Depo 2, why do you think the SEC employed so many more exhibits in the second part of the deposition than the first?

3. Pages 7-9 to 10-13. Quickly read over this discussion. Using the explanation of subpoenas in the chapter, why are the examiners so particular in their questions regarding the subpoenaed documents?

The only explanation found of subpoenas in the chapter:
Subpoenas
A subpoena is a written order in the name of the court, requiring a witness to submit to a deposition, give testimony at trial, or report to an administrative body. A subpoena duces tecum requires the recipient to produce documents pertinent to the case. The court clerk or an attorney as an officer of the court may issue subpoenas. Subpoenas are often the only method of ensuring production of information or documents from witnesses who are not parties to a lawsuit. For example, a subpoena could be used to require a brokerage house to produce records pertaining to the opposing party’s account. Subpoenas are sometimes used to obtain documents to compare them with documents produced by the opposing party. If the witness believes that the defendant has altered a bank statement sent as part of a document request, a copy of the defendant’s bank statement might be subpoenaed from the bank, and documents supporting the transactions may be vouched to the statement to establish the completeness of information.

4. Page 3. According to Mr. Dunbar, what is the purpose of this deposition, or “investigation”?