0002
1 APPEARANCES
2
3 Appearing on behalf of Summit Accommodators, Inc.:
4 DAVID S. AMAN, ESQUIRE
5 TONKON TORP, LLP
6 1600 Pioneer Tower
7 888 Southwest Fifth Avenue, Suite 1600
8 Portland, Oregon 97204
9 (503) 221-1440
10 (503) 972-3753 (fax)
11 david.aman@tonkon.com
12
13 Appearing on behalf of Stephanie Studebaker-DeYoung:
14 MATTHEW A. GOLDBERG, ESQUIRE
15 KELL, ALTERMAN & RUNSTEIN, LLP
16 520 Southwest Yamhill Street, Suite 600
17 Portland, Oregon 97204-1329
18 (503) 222-3531
19 (503) 227-2980 (fax)
20 mgoldberg@kelrun.com
21
22 ALSO PRESENT:
23 Ewan Rose of Obsidian Finance
24 Bill Johnson, Videographer
25

0003
1 INDEX
2 Page
3
4 EXAMINATION BY MR. AMAN 7
5
6 FURTHER EXAMINATION BY MR. GOLDBERG 139
7
8 FURTHER EXAMINATION BY MR. AMAN 152
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

0004
1 EXHIBITS
2 Exhibit Page
3
4 1 2008 TAX DOCUMENTS 51
5
6 2 KLONDIKE POINT, LLC RENT ROLL AS OF 73
7 05-17-09
8
9 3 E-MAIL FROM TIM LARKIN TO STEPHANIE 108
10 STUDEBAKER DATED 01-27-2009
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

0005
1
2
3
4
5
6
7 VIDEOTAPED DEPOSITION OF
8 STEPHANIE STUDEBAKER-DeYOUNG
9 Taken on behalf of Summit Accommodators, Inc.
10 August 25, 2009
11
12
13
14 BE IT REMEMBERED THAT, pursuant to the Oregon Rules
15 of Civil Procedure, the deposition of STEPHANIE
16 STUDEBAKER-DeYOUNG was taken before Marta J.
17 Charles, a Professional Court Reporter and a Notary
18 Public for the State of Oregon, on August 25, 2009,
19 commencing at the hour of 9:34 A.M., the proceedings
20 being reported at Naegeli Reporting Corporation,
21 1201 Northwest Wall Street, Bend, Oregon.
22
23
24
25

0006
1 VIDEOTAPED DEPOSITION OF
2 STEPHANIE STUDEBAKER-DeYOUNG
3 TUESDAY, AUGUST 25, 2009
4 9:34 A.M.
5
6 THE VIDEOGRAPHER: We are on the record.
7 This statement — this is a statement for a video
8 deposition. I am the videographer, and my name is
9 Bill Johnson. This videotaped deposition has been
10 Noticed by Attorney David S. Aman and is being held
11 on August 25th, 2009, at 9:34 a.m. The location is
12 1201 Northwest Wall Street, Bend, Oregon. The case
13 caption is Summit Accommodators Inc., In re: U.S.
14 Bankruptcy — Bankruptcy Court, District of Oregon.
15 Case number 08-37031-rld11. The deponent is
16 Stephanie Studebaker-DeYoung.
17 Would Counsel and all present please
18 identify yourselves and state your represent –
19 state whom you represent.
20 MR. AMAN: David Aman from Tonkon Torp
21 representing the Chapter 11 Trustee, Kevin Padrick.
22 MR. GOLDBERG: Matthew Goldberg; Kell,
23 Alterman & Runstein, representing the deponent,
24 Stephanie Studebaker-DeYoung and Ewan Rose with the
25 Obsidian Finance.

0007
1 THE VIDEOGRAPHER: The deposition is be –
2 being taken before Marta Charles, court reporter,
3 who will now swear in the witness.
4
5 STEPHANIE STUDEBAKER-DeYOUNG, having been first duly
6 sworn, was examined and testified as follows:
7
8 MR. AMAN: Do you want to go ahead and get
9 a glass of water? I’ll get it for you.
10 THE WITNESS: Thank you.
11 MR. GOLDBERG: Can I quickly just go –
12 MR. AMAN: Go ahead. Sure.
13 MR. GOLDBERG: This is Matt Goldberg. I
14 just want to start out by saying that all objections
15 not raised during this 2004 Exam are reserved. And
16 I want to specifically object at the outset to the
17 use of the videographer. It was not discussed or
18 included in the Stipulated Order scheduling the 2004
19 Exam.
20 THE COURT REPORTER: The 2004 Exam?
21 MR. GOLDBERG: (Nodded.)
22 EXAMINATION
23 BY MR. AMAN:
24 Q. Good morning, Ms. Studebaker.
25 A. Hi.

0008
1 Q. So, we’re here this morning for what’s
2 called a Rule 2004 Examination as part of the
3 bankruptcy proceeding for Summit Accommodators. And
4 I know you know who I am. But, just again for the
5 record, I’m David Aman. I represent Kevin Padrick,
6 the Chapter 11 Trustee, as part of the bankruptcy
7 proceeding.
8 So we’re — we’re here to basically take
9 an examination of you under oath. You’ve been sworn
10 in. I’m going to have a series of questions. I
11 just ask that you answer them to the best of your
12 ability as we go forward. And one of the things
13 about this kind of a test — this kind of testimony
14 taken under oath is that you are basically swearing
15 to tell the truth. Do you understand that?
16 A. Yes, I do.
17 Q. And we could, at some later point in this
18 proceeding, or for example, in an adversary
19 proceeding — in another court proceeding, we could
20 use your testimony here for a variety of purposes.
21 For example, we could use it to try to prove a point
22 that we’re trying to make that has nothing to do
23 with you. We could use it to try to show either the
24 judge and the jury that you’re giving inconsistent
25 testimony at the court proceeding, testimony that’s

0009
1 different than what you gave today. So do you
2 understand that?
3 A. Yes.
4 Q. If you don’t understand a question –
5 which is going to happen by the time we get done
6 here today, I’m sure — please feel free to ask me
7 to clarify, to restate it, to — any — anything you
8 need to ask me so that you can understand the
9 question, okay?
10 A. Okay.
11 Q. And the reason that that’s important is
12 because later on, if you didn’t understand the
13 question, it’s going to be assumed that you did
14 because you answered it, okay?
15 A. Okay. Yes.
16 Q. Is there anything today that would prevent
17 you from being able to testify fully and completely?
18 A. No.
19 Q. And let me give you a couple examples of
20 things that people will explain that may affect
21 their ability to testify. Sometimes people take
22 medication that affects their memory, for example,
23 so that they can’t remember things that took place
24 two years ago. Is there anything like that, that –
25 A. No.

0010
1 Q. No. Okay. The other thing, which you’ve
2 done a good job of so far is, it’s very important
3 that we not talk over each other. So if you’ll just
4 let me finish my question, I will do my best to let
5 you finish your answer. It makes the job for the
6 court reporter a lot easier. It makes the record a
7 lot cleaner, okay?
8 A. Okay.
9 Q. Have you ever given testimony under oath
10 before?
11 A. No.
12 Q. So you’ve never testified in a court
13 proceeding or a deposition?
14 A. No.
15 Q. Have you ever been a party to a lawsuit
16 before?
17 A. No.
18 Q. So you’ve never been sued and not sued
19 anybody?
20 A. No.
21 Q. Other than talking to your attorney, Mr.
22 Goldberg, which I’m not going to ask you about, have
23 you done anything to try to prepare for the
24 examination today?
25 A. Not really.

0011
1 Q. I mean, you gathered documents in response
2 to the Rule 2004 Examination Document Request I gave
3 you, but other than that, you haven’t done anything
4 to try to prepare for today?
5 A. No.
6 Q. I just want to sort of walk through your
7 background. And maybe you can start with what you
8 did post high school. And let’s start with the
9 education that you got, and then if you were working
10 during the time you were going to school or anything
11 like that, you can let me know, okay?
12 A. I went to college.
13 Q. And where did you go to college?
14 A. Various colleges.
15 Q. Just go ahead and — Maybe you can tell me
16 when you went to particular colleges and what you
17 studied, and then I may ask you some follow-up
18 questions.
19 A. I went to College of the Desert in Palm
20 Springs, first. I went to the Santa Rosa Junior
21 College in Santa Rosa, California, second. I went
22 to college — Central Oregon Community — Community
23 College here in Bend, third. And, finally, I went
24 to Linfield. And I grad — all in account — Well,
25 general first, then accounting, and graduated with a

0012
1 BS in accounting.
2 Q. And when — and you got your degree from
3 Linfield College?
4 A. Yes.
5 Q. And when was that? Approximately what
6 year?
7 A. Um — 2002.
8 Q. Generally speaking — I kind of think you
9 said this. Your focus of general studies was –
10 A. Accounting.
11 Q. — accounting. And why don’t you just
12 describe for me your work history. And if you had
13 sort of odd jobs or you worked at Starbucks, you can
14 sort of fill that it along the way. And then, to
15 the extent that you had more permanent positions,
16 you can describe those in a little more detail.
17 A. Well, mostly, I worked in restaurants
18 through college ’til I moved here in January of ‘99,
19 and I worked for my dad’s CPA firm.
20 Q. So is that when you were going to Central
21 Oregon Community College?
22 A. Yes.
23 Q. And what did you do for your dad’s CPA
24 firm?
25 A. I was a staff accountant.

0013
1 Q. How many — how many employees and/or
2 principals were there in that business at the time?
3 A. Okay.
4 Q. Let me ask it a little differently. So
5 what was the name of the accounting firm?
6 A. Stevens and Neuman.
7 Q. So it was Brian Stevens and Mark Neuman as
8 the principal –
9 A. Yeah.
10 Q. — owners?
11 A. Yeah.
12 Q. All right. How many other employees were
13 there in the business?
14 A. Twelve to fourteen. I mean, I’m kind of
15 guessing.
16 Q. And you’re –
17 A. I don’t know exactly.
18 Q. And you’re just — You know, obviously,
19 when we’re talking about things that happened ten
20 years ago, it’s understandable if you can’t remember
21 exactly when it was or how many people were –
22 Again, ranges are fine. If I — I if want you to be
23 more specific, I’ll ask you. But just do your best
24 –
25 A. Okay.

0014
1 Q. — okay? And so you were a staff
2 accountant. What were your job responsibilities as
3 a staff — staff accountant?
4 A. To prepare tax returns for whoever they
5 gave me tax returns to prepare for.
6 Q. I forgot to ask this: What’s your date of
7 birth?
8 A. 3/16/75.
9 Q. And what’s your current home residence
10 address?
11 A. 2441 North West Hosmer — H-O-S-M-E-R –
12 Lake Drive.
13 Q. And I ask this question all the time: Do
14 you have any current plans to move to a new
15 residence? And the reason I ask is — Let me tell
16 you why. Because sometimes we may want to contact
17 somebody and send them a subpoena –
18 A. Oh.
19 Q. — or something. You don’t have any
20 current plans to move?
21 A. No. Not unless I get tired of you guys,
22 then I’m going. Sorry.
23 Q. So you prepared tax returns when you were
24 a staff accountant. How long did you have a
25 position as a staff accountant for — was it –

0015
1 A. For them?
2 Q. — was it Stevens and Neuman?
3 A. (Witness nodded.)
4 Q. How long have you had that position?
5 A. Through October of 2002.
6 Q. In terms of the work you did as a staff
7 accountant, anything beyond preparing tax returns?
8 A. I would do some projections if they wanted
9 me to work on projections.
10 Q. And what sorts of projections?
11 A. What was that?
12 Q. I’m sorry. What kinds of — what kind of
13 projections are you talking about?
14 A. Where you just project what people’s
15 income is going to be based on a number of facts.
16 Kind of — They do what — It’s like forecasted
17 financial statements.
18 Q. And the tax returns that you’re preparing,
19 were those personal tax returns? Corporate tax
20 returns?
21 A. All –
22 THE COURT REPORTER: I’m sorry?
23 THE WITNESS: All of them.
24 BY MR. AMAN: (Continuing)
25 Q. And would that be true for the projections

0016
1 as well, or is that –
2 A. I only did one for Mike Hanson.
3 Q. And who is that? Who’s Mike Hanson?
4 A. He was one of the CPAs that bought Mark
5 and Brian out in October of 2002.
6 Q. So when you — when you said you did
7 projections it was just the one?
8 A. Yeah.
9 Q. Any other job duties that you had as a
10 staff accountant for Stevens and Neuman?
11 A. Training new employees, new staff
12 accountants.
13 Q. Basically trained them to do what you had
14 been doing, correct?
15 A. Yes.
16 Q. During the time period that you were
17 working for Neuman and Stevens, was Summit
18 Accommodators, Inc., was it involved in doing 1031
19 exchanges?
20 A. Yes.
21 Q. Did you have any duties or involvement
22 with the exchange business at Summit Accommodators?
23 A. No.
24 Q. Where were the offices — Neuman and
25 Stevens — Let me correct myself. Is it — was it

0017
1 called Stevens and Neuman?
2 A. Stevens and Neuman.
3 Q. All right. Stevens and Neuman, where were
4 those offices located at that you worked at as a
5 staff accountant?
6 A. It was on — it was 377 Southwest Century
7 Drive.
8 Q. And were the — was the Summit
9 Accommodator — Accommodators’ business run out of
10 the same office?
11 A. Yeah, but they were on the top floor.
12 Q. And what floor were you on?
13 A. On the bottom floor. There’s two floors.
14 Q. Two floors. Did you do — Well, strike
15 that.
16 Did you prepare tax returns for Summit
17 Accommodators at any time during your work as a
18 staff accountant?
19 A. No.
20 Q. Did you do tax returns for Inland Capital
21 Corporation during the time when you were a staff
22 accountant person?
23 A. No.
24 Q. Any other work that you performed as a
25 staff accountant for Stevens and Neuman other than

0018
1 the categories we’ve talked about; preparing tax
2 returns, projections, or training employees?
3 A. Oh. Bookkeeping and payroll.
4 Q. And did you do bookkeeping and payroll
5 just for Stevens and Neuman and not for Summit
6 Accommodators?
7 A. Right. Just for clients of Stevens and
8 Neuman.
9 Q. Oh, okay. I apologize. So you — you did
10 it for the clients themselves?
11 A. Yeah.
12 Q. Anything else that you did — So after you
13 worked as a staff accountant for Stevens and Neumans
14 — Stevens and Neuman in October of 2002, it sounds
15 like you started doing something else.
16 A. Well, they sold the firm to Shackelford,
17 Hanson & Parr. And so I started working for
18 Shackelford, Hanson & Parr.
19 Q. And did you have the same position?
20 A. The only thing that changed is I had got a
21 list of clients that I was in charge of.
22 Q. Would it be fair to say that that was, in
23 a sense, a promotion, that you had more
24 responsibility?
25 A. Yes.

0019
1 Q. And in terms of the clients that you
2 became in charge of, what was the criteria for the
3 clients that you would now be handling?
4 A. They were clients that I’ve been the
5 preparer for about the last five years.
6 Q. Were they clients that had any kind of
7 business relationship with Stevens and Neuman beyond
8 the accounting relationship?
9 A. No. Oh. They may have done, like, a 1031
10 exchange at some point. That’s the only thing, some
11 of them.
12 Q. Let me ask you a follow-up question about
13 that. When you were working as a staff accountant
14 for Stevens and Neuman, as what — as part of your
15 job responsibilities when you’re doing tax returns
16 or doing any other kind of accounting work for the
17 clients, did you have occasion to handle tax issues
18 relating to 1031 exchanges that were performed by
19 Summit Accommodators?
20 A. I — Yes, because we had to file the 1031
21 exchange transaction on their tax return.
22 Q. Did you review — did you review the
23 exchange agreements?
24 A. No.
25 Q. Did you ever see a 1031 exchange — Well,

0020
1 strike that.
2 Prior to December of 2008, did you ever
3 see a 1031 exchange agreement?
4 A. No.
5 Q. So let’s keep going with kind of the
6 history of your work experience. So you went to
7 work for Shackelford. And how long did you work at
8 Shackelford?
9 A. For ten months, I think. Close to ten
10 months.
11 Q. In basically the same role you’ve already
12 described?
13 A. Yes.
14 Q. And what did you do after that?
15 A. I left and started my own practice with
16 one of the other employees.
17 Q. And who was that?
18 A. Sandy McGregor.
19 Q. Has that been McGregor and Studebaker?
20 A. Yes.
21 Q. And how long did you and Ms. McGregor work
22 together in the business?
23 A. Three tax seasons.
24 Q. And did you have employees?
25 A. We had mostly part-time reception

0021
1 employees.
2 Q. And after McGregor and Studebaker, what
3 was the next work that you did?
4 A. Tyler and Studebaker.
5 Q. And how did you get connected with Ms.
6 Tyler?
7 A. She was interested in investing in that
8 building, Klondike Point, LLC, and I was interested
9 in doing that. And she wanted partner, and I — I
10 wanted a different partner.
11 Q. How did you get to know Ms. Tyler?
12 A. We worked on a common client while I was
13 working at Shackelford, Hanson & Parr, and then I
14 just saw her in town meetings and we seemed to get
15 along.
16 Q. She had worked at Shackelford before when
17 you were there?
18 A. She hadn’t, but we worked on a common
19 client, like we were — she had part of — she was
20 working on part of the returns for these clients,
21 and I was working on one of the owners.
22 Q. All right.
23 A. So we had to communicate.
24 Q. And then, as I understand it, you and Ms.
25 Tyler worked in the Tyler Studebaker business until

0022
1 just recently –
2 A. Right.
3 Q. — correct? And you’re now — are you now
4 on your own?
5 A. Yes.
6 Q. Do you have any employees?
7 A. I have one employee.
8 Q. And what’s that employee’s — what’s that
9 employee’s role?
10 A. She is office manager.
11 Q. What’s her name?
12 A. Sheri McGovern. I have another employee
13 that fills in for the office help, too.
14 Q. And who is that?
15 A. Joanna Rossi.
16 Q. Do you have any professional licenses or
17 certifications? Obviously you’re a CPA, correct?
18 A. Yes.
19 Q. Any other professional licenses or
20 certifications that you have?
21 A. No.
22 Q. And when did you get your CPA license?
23 A. Let me think. 2004.
24 Q. I just want to ask you some questions
25 about who your family members are, kind of extended

0023
1 family. So you have children, correct?
2 A. Yes.
3 Q. And what are their names?
4 A. Sean. Lleyton; L-L-E-Y-T-O-N. Reid; R-E-
5 I-D. And Sean is S-E-A-N.
6 Q. And how old is Sean?
7 A. He is twelve.
8 Q. And Lleyton?
9 A. Six.
10 Q. And Reid?
11 A. Just turned five.
12 Q. And brothers and sisters?
13 A. My sister, Shauntel; S-H-A-U-N-T-E-L.
14 Next brother, Brandon; B-R-A-N-D-O-N. Next brother,
15 Kenyon; K-E-N-Y-O-N. Gatlin; G-A-T-L-I-N, and
16 Travis; T-R-A-V-I-S.
17 Q. And just briefly, I just want to do walk
18 through where they live and what they do, generally.
19 Shauntel, where does she live?
20 A. Oh. Windsor, California.
21 Q. And what — what’s her occupation?
22 A. She’s an RN.
23 Q. And Brandon?
24 A. He is in Windsor, California.
25 Q. What does he do?

0024
1 A. He works for the Napa Valley County
2 Hospital, I think maintenance.
3 Q. And Kenyon?
4 A. He — I’m not sure what he’s doing for
5 work right now, but he’s mostly going to college at
6 Colorado State.
7 Q. And Gatlin, where does he live?
8 A. He kind of lives here in the summer and he
9 goes to OSU. Is that the Ducks?
10 Q. U of O?
11 A. U of O. Is that the Ducks? Sorry.
12 Q. No, that’s okay.
13 A. I should be better at that.
14 Q. Travis?
15 A. He is 15, and he goes to Summit High
16 School.
17 Q. So are you currently married?
18 A. Yeah.
19 Q. And what’s your husband’s name?
20 A. Bret.
21 Q. Bret DeYoung?
22 A. Mm-hm.
23 Q. And you’ve been married before?
24 A. Yes.
25 Q. What was your prior husband’s name?

0025
1 A. Mike Studebaker.
2 Q. And, roughly, what was the time frame that
3 you were married to Mr. Studebaker?
4 A. For about 12 years.
5 Q. And was he your first husband?
6 A. Yes.
7 Q. As so, I just want to walk through your
8 involvement or role in companies or investments that
9 also involved your father. I’m just going to ask
10 you kind of a series of questions about that, and
11 then I’ll probably have quite a few follow-up
12 questions. So, first, could you tell me to the ext
13 — could you list for me any company or any property
14 where you had or have an ownership interest where
15 your father also has one?
16 A. It would be Klondike Point, LLC; Century
17 Drive Mobile Home Park, LLC; Soco Investments, LLC;
18 and SDC Investments, LLC.
19 MR. GOLDBERG: Just quickly by way of
20 clarification, I think you said that in which her
21 father has an interest. Can you just –
22 MR. AMAN: Oh. I can — I can clarify the
23 question.
24 MR. GOLDBERG: Okay.
25 BY MR. AMAN: (Continuing)

0026
1 Q. What I want to know is — and I’ll ask a
2 follow-up just to make sure it’s clear after I ask
3 this question. But I know — what I want to know
4 is: To the extent that your father had or has an
5 ownership interest in a company or property where
6 then you also had an ownership interest –
7 A. Yeah.
8 Q. — at any time.
9 A. Those were correct.
10 Q. And just expanding that question a little
11 bit, would that be the same list with respect to any
12 companies for your dad having an indirect ownership
13 interest? Say, for example, through VSN Properties,
14 would that be the same answer?
15 A. Yeah. I don’t — Wait.
16 Q. I can reask the question. So what I want
17 to make sure is — Obviously your dad had an
18 ownership interest in LLCs that then owned
19 properties or an interest in other LLCs, correct?
20 A. Correct.
21 Q. So I want to make sure that my question is
22 broad enough to cover situations where VSN, for
23 example, had an ownership interest in an LLC, and
24 then you also had an ownership interest in that same
25 LLC. So my question is –

0027
1 A. So, just –

3 A. So if VSN had an ownership interest in
4 something I had an ownership interest, you would
5 want that name, too?
6 Q. Yes.
7 A. No.
8 Q. So the four that you’ve listed would in –
9 be inclusive of that?
10 A. All of them.
11 Q. Okay. I’m going to come back to those. I
12 just want to kind of get the full range of ways that
13 you have been involved either as in — you’ve worked
14 for, or an ownership interest with your dad or any
15 of his businesses, okay?
16 So you’ve already described the employment
17 that you had at Stevens and Neuman. Any other
18 employment that you’ve had for any company that your
19 dad had an interest in?
20 A. No.
21 Q. Any CPA work or accounting work that
22 you’ve done in any way for any company that your dad
23 had an ownership interest in?
24 A. Yes.
25 Q. And what — what companies did you do work

0028
1 for that your dad had an ownership interest in?
2 A. I’m not going to be able to remember them
3 all. Can you give me a list?
4 Q. I will give you what I have as a list to
5 help refresh your memory. Let’s see. Actually,
6 maybe this is the easiest way to do it. I can ask
7 you about particular entities and you can tell me.
8 A. Okay.
9 Q. Did you do any tax work for VSN
10 Properties?
11 A. Yes, 2005 and 2006 tax returns.
12 Q. And what about Ashley Ranch?
13 A. I don’t — I don’t think so. I don’t
14 remember an Ashley Ranch.
15 Q. Century Drive?
16 A. Yes.
17 Q. Corney Investors?
18 A. I have done Corney Investors.
19 Q. And what years did you do Corney
20 Investors, if you can remember?
21 A. Well, I just did 2008. Brian and Mark
22 took all the returns back in-house when they were
23 short on money. So I think I didn’t do ‘07. I’m
24 not sure if I did ‘06. But I think I did a return
25 prior to that.

0029
1 Q. So maybe I can ask kind a broader question
2 about the work that you did for tax preparation.
3 Was there — prior to 2007, was there sort of a
4 criteria for deciding which returns you were going
5 to do for the businesses and which returns either
6 Mark or Brian were going to?
7 A. Not — I didn’t have a criteria. They had
8 — they just gave me which returns they wanted me to
9 do.
10 Q. And did you have a sense about sort of
11 what group of returns that was, or did they seem
12 kind of ad hoc?
13 A. It just seemed like they wanted me to do
14 most of the returns.
15 Q. Well, let me keep going through just so I
16 get the full list. Culver Crossing?
17 A. I think I only did this year’s. I’m not
18 sure though.
19 Q. Doctors Court?
20 A. Yes. I did that a few years before they
21 took it in. And then — I don’t — I didn’t do it
22 in ‘08.
23 Q. Let’s see. Dustin Ranch?
24 A. No.
25 Q. Emmett Ranch?

0030
1 A. I think I remember Emmett Ranch, but I
2 don’t know if I actually did the return.
3 Q. Fraser Enterprises?
4 A. I think I may have done the return once.
5 Q. And Galveston Point, LLC?
6 A. Yes.
7 Q. Gannon Point?
8 A. No. Oh, I may have done it.
9 Q. Hope Ranch?
10 A. Yes.
11 Q. Hunter ranch?
12 A. I think that’s a single-member LLC, so I
13 don’t think I prepared a return for that.
14 Q. And for Hope Ranch — I apologize — what
15 — what years do you recall doing Hope Ranch?
16 A. I would say it would’ve been 2006, 2005.
17 Q. Inland Capital?
18 A. Never.
19 Q. John Day River, LLC?
20 A. Never.
21 Q. Jordan Capital?
22 A. Never.
23 Q. Jordan River Development?
24 A. Never.
25 Q. KEB Antler Investments?

0031
1 A. I can’t remember if I saw a K-1 or I
2 actually prepared a return on that one.
3 Q. Klondike Point?
4 A. Yes.
5 Q. And what years did you do Klondike
6 Points’?
7 A. Every year.
8 Q. So when — when would be the first year
9 that you did it?
10 A. I probably got it in ‘04 — ‘05.
11 Q. Lindy Point Properties?
12 A. Yes.
13 Q. And what years did you do that?
14 A. I think it was, like, a few years before.
15 Then they took it back. And then I just had Lindy
16 Point this year.
17 Q. And Main Street Quarter?
18 A. Same deal.
19 Q. As Lindy Point?
20 A. Yes.
21 Q. All right. Neuman Family, LLC?
22 A. Same deal.
23 Q. So you did it for a few years and then you
24 took it back and now you’re doing it again?
25 A. Correct.

0032
1 Q. Newco Properties, LLC?
2 A. You know, I think I did that return.
3 Q. What was Newco Properties?
4 A. I don’t know.
5 Q. Oasis Estates?
6 A. No.
7 Q. Odell, LLC?
8 A. That seems like it is a single-member LLC
9 or something. It might have been on the K-1.
10 Q. Powell Butte Investments?
11 A. I think I might have just done 2008.
12 Q. So just the more recent work you’ve been
13 doing, you’ve, I take it, been doing a lot more of
14 the returns again?
15 A. Trying to, yes, because they need them
16 done.
17 Q. Quinn River Ranch?
18 A. No.
19 Q. Riley Coyote?
20 A. I don’t know what Ri — I think I might’ve
21 done Riley Coyote, but not this year. A while back.
22 Q. RSN Properties, Limited?
23 A. RSN. I think I might’ve done that a while
24 back, too.
25 Q. SDC Investments?

0033
1 A. Yes. I — Did I do that all years? I
2 think I might’ve done that one every year since it -
3 – since I got involved in that one.
4 Q. When did you get involved?
5 A. A year after they purchased the property.
6 Q. So roughly what year did you get involved,
7 if you can recall? And if you’re not sure of the
8 exact year, that’s okay, but if you can give us kind
9 of a range.
10 A. Let’s see. What’s 2008 — they negotiated
11 — 2006.
12 Q. Sisters Mobile Home Park?
13 A. Yeah. I don’t think that they have a
14 return. I think there’s a TIC. So I prepared the
15 schedules for the TIC.
16 Q. Stacy Point, LLC?
17 A. Yes, same deal, though. They took it back
18 when they didn’t have any money to pay me.
19 Q. Let’s see. Stone Mountain?
20 A. I never did Stone Mountain.
21 Q. What about — I’m going to refer to the
22 Summit affiliate offices as — just so the record’s
23 clear — the offices in Austin and Yakima and
24 Jackson Hole, they were part of, you know, the
25 Summit Accommodators organization. Did you do any

0034
1 of the tax returns for those entities?
2 A. I did Utah, Austin, and I think I did
3 Tahoe.
4 Q. And what about Montana and Wyoming?
5 A. I think I did the one in Montana. I may
6 have done the one is Wyoming. I’m not sure. I
7 don’t know that gal that much. I never did the
8 Yakima one.
9 Q. And Three Sisters Development, did you
10 ever do that tax return?
11 A. No.
12 Q. What about Whispering Meadows?
13 A. I think, yes.
14 Q. Did you ever have any involvement at any
15 time in the Summit Accommodators’ exchange business?
16 A. No.
17 Q. Did you ever, personally, have any — Or
18 strike that.
19 Did you ever, personally, do any 1031
20 exchanges?
21 A. No.
22 Q. Did any of the entities that you were –
23 Well, strike that.
24 Did you ever act as a manager or act as an
25 employee for any of the entities that your father

0035
1 had any kind of ownership in?
2 A. No, except for the ones that I’m involved
3 in as a manager.
4 Q. Well, let me — let me clarify the
5 question, then.
6 A. Okay.
7 Q. Including those entities that you may be
8 involved in.
9 A. Okay.
10 Q. So let me — let me ask the question
11 again. Did you ever have a role as either a manager
12 or an employee on — in any companies or relating to
13 any properties that your dad had a direct or
14 indirect ownership in?
15 A. Yes. Klon — Klondike Point, LLC; Century
16 Drive Mobile Home Park, LLC; Soco Investments, LLC.
17 And I was the manager of Cosobo Investments, but we
18 were not managers of SDC. And he’s not a member of
19 Cosobo.
20 Q. Is he a member of SDC?
21 A. Mm-hm. Yes.
22 Q. So let’s start with Klondike Point. What
23 was your role as either manager or employee at any
24 time on Klondike Point — for Klondike Point?
25 A. I basically ran everything. Property

0036
1 management, renovation, paying the bills, doing the
2 tax returns, making most of the decisions besides
3 big ones.
4 Q. And so, you’ve described what your
5 responsibilities were. Did you have a defined
6 position as a manager or employee at any time?
7 A. I’ve been a manager. Yes, the manager the
8 whole time.
9 Q. And were you compensated for your work as
10 a manager?
11 A. I got compensated via bookkeeping, bills.
12 Like, for the bookkeeping, I billed them for the
13 bookkeeping. And I billed them for the construction
14 management of the building, because we renovated it.
15 Q. And what — what would you charge for
16 those two services?
17 A. Bookkeeping is hourly rate. Probably
18 about 200 bucks a month. And for the construction -
19 – because I managed the whole project — it was
20 about 20,000.
21 Q. And just so I’m clear about — you were,
22 in fact, appointed as manager of Klondike Point?
23 A. Yeah.
24 Q. And when was that?
25 A. Since the incep — day one.

0037
1 Q. Was there any — was there a comanager or
2 comanagers?
3 A. Tim Larkin.
4 Q. And as long as we’re on Klondike Point,
5 can you walk through the ownership interests in
6 Klondike Point as you understood it from inception?
7 And then if it changed at any time, if you can
8 describe that, just to the best of your knowledge.
9 A. Okay. The inception, it was — I have
10 16.667 percent, and so did Barb. And I believe Tim
11 had five percent. And I think Stephen Ford had ten
12 percent.
13 Q. And who was Stephen Ford?
14 A. A Realtor in town.
15 Q. And how did he get involved in this deal?
16 A. He was the one who I think brought it up
17 to my dad.
18 Q. Was he a client of Summit Accommodators,
19 as you understood it?
20 A. I don’t think so, but I’m not sure.
21 Q. Okay. Is there anyone else that had an
22 ownership interest at the inception?
23 A. Mark and Bri –
24 Q. When you say “Mark,” you mean your dad?
25 A. Yeah. Mark and Brian had the rest.

0038
1 Q. And my apologies. What was Tim Larkin’s
2 ownership interest?
3 A. I think five percent.
4 Q. Was Klondike the first investment that you
5 were involved with your father?
6 A. Yes.
7 Q. So how did that come about?
8 A. He said I — Well, he thought I needed to
9 start investing. And he thought it would be a good
10 idea to do one for my practice — a place where I
11 could put my practice.
12 Q. When, approximately, did you have that
13 conversation with your dad? And I’m not asking for
14 a precise date, just the time frame.
15 A. The fall of ‘04.
16 Q. Were you working with him at the time?
17 A. No.
18 Q. So that was just a conversation you had –
19 personal conversation, and he said he thinks it’s a
20 good idea if you start investing?
21 A. Yes.
22 Q. And who had the idea — Well, strike that.
23 How did the idea for this specific
24 investment for Klondike Point develop?
25 A. Stephen Ford.

0039
1 Q. So, just describe from the beginning what
2 happened.
3 A. I don’t know exactly whatever conversation
4 Stephen Ford had with my dad. All I know is I think
5 they had a conversation, and then my dad told me.
6 And I said, “Great. But I can afford this much.”
7 And then that was it.
8 Q. Okay. And what was your role as things
9 developed in terms of getting anyone else involved?
10 A. I — My original partner, Sandy, was going
11 to invest. And she promised to invest, but she got
12 nervous and backed out, because she didn’t really
13 want to take on an investment. And Barb Tyler
14 expressed an interest in both partner and with me
15 taking an investment.
16 Q. Did you go to her and say, “We’ve got this
17 opportunity”?
18 A. Yes.
19 Q. And what had led you to believe that she
20 would be interested?
21 A. My dad told me she would be a good
22 partner. And then she also told me she was looking
23 for an investment.
24 Q. And so can you describe, basically, what
25 the — the investment and the project was for

0040
1 Klondike Point as you understood it at the
2 inception?
3 A. Just to have a commercial building that
4 brings rent income in and to improve it with minimal
5 cost.
6 Q. And how did you understand at the outset
7 how it was going to be funded?
8 A. By a construction loan with Columbia River
9 Bank.
10 Q. Did you understand that there was — Did
11 you learn at any point that there was going to be
12 funding provided by Inland Capital?
13 A. Yeah. We — I believe we had to borrow
14 funds from Inland Capital for the construction in
15 the interim.
16 Q. Sort of a bridge loan of some sort?
17 A. Yeah.
18 Q. And can you just describe in terms of how
19 decisions will be made when you were dealing with
20 this Klondike Point Investment? Did you have
21 regular meetings? Did you e-mail?
22 A. Mostly e-mail.
23 Q. Did you ever have regularly meetings?
24 A. We had one meeting when — at the
25 beginning, mostly led by Stephen Ford, about what we

0041
1 were going to do. And then we had a couple other
2 meetings. It was about the construction, because
3 the costs we were getting from who Stephen Ford was
4 working with was, like, half a million dollars. And
5 I just said, “That’s too much to spend on an old
6 building.” And then — So I had a meeting and I
7 gave them what I think it should cost, which was
8 about half. And they decided to hire me instead of
9 Stephen to do the construction management.
10 Q. And then at some point you said you needed
11 — I’ll just call it a bridge loan — from Inland
12 Capital. How did that come about?
13 A. I don’t know, exactly. I think probably I
14 said, “We need money.” They said, “Temporarily
15 borrow it from Inland.” But I don’t — And then, I
16 think they might have forgot about it. And then
17 they all of a sudden — I remember — I think we’re
18 on the right entity — that day I said, “Oh, you
19 guys owe us this plus interest. You need to pay it
20 off.” So I believe we all made a capital
21 contribution and paid it off.
22 Q. Well, let me just kind of step back a
23 little bit. Because I want to sort of distinguish
24 between what might have happened or what probably
25 happened and what you remember.

0042
1 A. Mm-hm.
2 Q. Because one of the things that we — we
3 don’t want you to do is to speculate. If you don’t
4 remember something, that’s fine.
5 A. I don’t remember how –
6 Q. Sorry. Let me just — I don’t want to
7 talk over each other.
8 So let me ask the question a little bit
9 more specifically. Do you recall any discussions or
10 communications among the Klondike Point group –
11 just refer to it — about the need for a bridge
12 loan?
13 A. I don’t specifically remember.
14 Q. And do you recall discussions about the
15 fact that money was going to be provided by Inland
16 Capital?
17 A. I don’t recall.
18 Q. What did you understand Inland Capital
19 was?
20 A. A loaning company.
21 Q. Did you understand it had any affiliation
22 whatsoever with your father?
23 A. Yes, I knew he owned Inland.
24 Q. Who else did you understand owned Inland?
25 A. I knew Brian and Mark owned Inland until

0043
1 Lane and Tim bought in.
2 Q. And how do you — how did you learn that
3 Lane and Tim bought it?
4 A. Because I did the tax returns for Lane,
5 Tim, in the year they purchased their interest.
6 Q. Did you have any information about the
7 source of funds from Inland Capital?
8 A. No.
9 Q. Did you at any time ever have any
10 conversations with anyone about the source of funds
11 from Inland Capital prior to December of 2008?
12 A. No.
13 Q. Did you have any question about it in your
14 mind?
15 A. I didn’t think about it. I — No, I
16 didn’t think about it.
17 MR. GOLDBERG: Are you asking her to
18 speculate? Because you just said you didn’t want
19 her to speculate.
20 MR. AMAN: I asked her if she had any
21 question about it.
22 THE WITNESS: Did I have any question
23 about it?
24 BY MR. AMAN: (Continuing)
25 Q. Yeah. Let me reask the question. I asked

0044
1 you: Did you ever, in your mind, have any question
2 about the source of funding for Inland Capital?
3 A. No.
4 Q. Did you ever reach any conclusion that the
5 source of the funds for Inland Capital had come from
6 Summit Accommodations’ exchange funds?
7 A. No.
8 Q. Where did you think the money came from?
9 A. I didn’t think about it, because it wasn’t
10 my business.
11 Q. Would it be fair to say that, in the
12 course of your work performing either bookkeeping or
13 tax returns for the various entities that we’ve been
14 talking about, VSN Properties and so forth, that you
15 became aware that there were substantial loans being
16 made to Inland Capital by these entities?
17 A. You know, I just don’t — I’m paying
18 attention to the tax return. They tell me they have
19 a loan. I book the loan. I don’t think about
20 whatever else goes behind the scenes. I don’t need
21 to know that to prepare a tax return.
22 Q. And I understand that. I mean — But my
23 question is: Would it be fair to say that you
24 became aware that there were substantial loans being
25 made by Inland Capital to these entities?

0045
1 A. No.
2 Q. In — As an accountant and in the course
3 of doing tax returns involved with 1031 exchanges,
4 did you become generally familiar with the whole
5 1031 exchange process?
6 A. Yes.
7 Q. So you understand the time lines?
8 A. Yes.
9 Q. And the deadlines for performing certain
10 acts, correct?
11 A. Correct.
12 Q. Would you agree with me that it would be
13 very important to keep funds liquid for those return
14 — for those exchanges?
15 A. You know, I don’t own a 1031 business, so
16 I’m not sure. I can’t guess what someone else has
17 to do in a 1031 business. I only have an accounting
18 firm.
19 Q. Well, I’m not asking you to guess about
20 what other people do. I’m asking you — You’re an
21 accountant, correct?
22 A. Mm-hm.
23 Q. And you are familiar with the 1031
24 exchange business –
25 A. Yes.

0046
1 Q. — generally? And would you agree with me
2 that it would be important to keep funds liquid in
3 order to fund exchanges?
4 A. Yes.
5 Q. Do you believe that it would be acceptable
6 to use exchange proceeds for personal investments?
7 A. I don’t think so.
8 Q. Did you ever have any suspicions
9 whatsoever that that was going on at Summit
10 Accommodators?
11 A. No.
12 Q. When did you become aware, in any way, of
13 Inland Capital?
14 A. Become aware of it in — in what way?
15 Q. Just heard the name Inland Capital, how
16 did that come about?
17 A. I think they had Inland Capital forever.
18 I mean, it was just one of their businesses.
19 Q. And so in the context of working with your
20 dad as a staff accountant for several years and then
21 doing tax returns after that, you were familiar with
22 Inland Capital, right?
23 A. I thought it was a lending company.
24 Q. Now, at some point in early 2007 — or
25 early 2006, would it be fair to say that you became

0047
1 aware that your dad and the other principals at
2 Summit Accommodators were now concerned about
3 calling the loans for Inland Capital?
4 A. Uh –
5 Q. Let me ask you differently. Would it be
6 fair to say that they were expressing to you that
7 they needed to have the Inland Capital loans paid
8 back?
9 A. Yes.
10 Q. And why did they tell you they needed that
11 done?
12 A. They didn’t.
13 Q. Did you ever ask any questions about that?
14 A. No.
15 Q. So, I just want to go back and talk about
16 ownership interest in Klondike Point as they evolved
17 over time. So you described how it was at the
18 inception. And can you describe how it changed over
19 time, if it did?
20 A. First it changed because Stephen Ford
21 wanted out, and so we all bought a pro rata share of
22 Stephen Ford’s interest from Stephen Ford. I think
23 it was ten percent.
24 Q. Okay. And did it change at any time after
25 that?

0048
1 A. It’s been changing all year this year,
2 because I’m funding it. So every time I make a
3 capital call no one else is making, I get ownership.
4 THE COURT REPORTER: You get what
5 ownership?
6 THE WITNESS: I get ownership –
7 THE COURT REPORTER: Okay.
8 THE WITNEES: — more ownership as I make
9 capital call contributions that no one else is
10 making.
11 BY MR. AMAN: (Continuing)
12 Q. And so, let me focus on prior to the
13 bankruptcy first, the bankruptcy filing. Were there
14 any changes in ownership other than Stephen Ford
15 being bought out?
16 A. No.
17 Q. And were there any changes in the
18 designated manager or managers for the business
19 prior to the filing to the bankruptcy?
20 A. No.
21 Q. Were there any changes to the manager or
22 managers after the bankruptcy was filed?
23 A. Yes.
24 Q. And what was the change?
25 A. Tim Larkin resigned, and Barb Tyler became

0049
1 manager.
2 Q. Other than the $20,000 approximately that
3 you were paid for construction management for
4 Klondike Point and the bookkeeping payments that you
5 received that you’ve talked about, any other
6 compensation that you received for Klondike Point?
7 A. For tax prep.
8 Q. And how much were you paid for that?
9 A. About — Anywhere from — I’m guessing –
10 650 to 1250-ish, depending on what happened during
11 the year.
12 Q. And would you bill out an hourly rate?
13 A. Yes.
14 Q. Any other compensation that you received
15 from Klondike Point?
16 A. No.
17 Q. Have you received any distributions from
18 Klondike Point?
19 A. No.
20 Q. So let’s talk about Century Drive Mobile
21 Home Park. First, how did you get involved in that
22 investment?
23 A. One of my clients was interested in
24 selling, and he wondered what the price was. I
25 said, “I don’t know. You could talk to my dad, and

0050
1 maybe he knows.” Talked to my dad. They decided
2 the price was three and a half million. Tim Larkin
3 said he thinks it’s a good investment because RM was
4 good at the time. And I kind of ran my numbers
5 myself, if we did RM, and decided –
6 Q. And what’s “RM”?
7 A. Residential multi-family zoning — and
8 thought it was a good investment. And so I said I
9 could only — “I only have 50,000.” And I got ten
10 percent.
11 A. And who else invested in the business?
12 A. In Century? Tim Larkin. He was the same
13 as me, ten percent. The Neuman Family, LLC; they
14 have 9.2 percent, and Mark and Brian have 35.4
15 percent each.
16 Q. The Neuman Family, LLC, who are the
17 members of that entity?
18 A. Kenyon; Gatlin; Travis; Amber Jacobs, my
19 niece. Sean, and Lleyton, and then my dad.
20 Q. And Amber Jacobs, whose daughter is that?
21 A. My sister’s, Shauntel.
22 Q. So basically, it was the kids. And to the
23 extent that the kids had their own kids, then it was
24 the grandkids?
25 A. Right.

0051
1 Q. And did they have, then, equal shares
2 based on — Why don’t you tell me what the
3 percentages are. That would probably be easier.
4 A. Neuman Family is confusing. I would have
5 to look at my Neuman Family schedule.
6 Q. Sure.
7 MR. AMAN: Now, this is probably a good
8 time to take a break. I know we’ve been going for
9 over an hour. So, off the record.
10 THE VIDEOGRAPHER: Ready to go off the
11 record? The time is 10:34 a.m. Off the record.
12 (Whereupon, a short break was taken.)
13 THE VIDEOGRAPHER: We are back on the
14 record. The time is 10:49 a.m.
15 BY MR. AMAN: (Continuing)
16 Q. Ms. Studebaker, we were talking before the
17 break about the Neuman Family, LLC. And you
18 referred to schedules for the — to figure out what
19 the percentage ownership interests are. So let me
20 talk about that just for a second. And I’m going to
21 hand you what we’re going to mark as Exhibit 1 to
22 this examination, which is a notebook which has all
23 the documents that you produced in response to
24 question number 22 of the examination request that
25 we sent you. And just for the record, we — we have

0052
1 also put Bates numbers on the bottom right-hand
2 corner just to help in identifying what the
3 documents are. And I believe that in this document
4 — or excuse me — in this binder set of the
5 documents produced are tax returns for Neuman
6 Family, LLC.
7 A. Mm-hm.
8 Q. And so, to the extent that that may help
9 you with — refresh your memory about the ownership
10 interests.
11 A. Sure. I’m not sure it’s going to be on –
12 Q. Okay.
13 A. — the tax return. This portion of it is,
14 but there’s debt percentages that don’t have to be
15 put on the tax return. Let’s see.
16 MR. GOLDBERG: Are you in a position,
17 David, to say what question 22 was, generally?
18 MR. AMAN: Sure. I can do that. Question
19 number 22 is all documents relating in any way to
20 your preparation of tax returns or any of the
21 related parties. And that was –
22 MR. GOLDBERG: (Nodded.)
23 MR. AMAN: And then in the response it
24 says the tax returns are provided for Klondike
25 Point, Century Drive Mobile Home Park, Soco

0053
1 Investments, and the Neuman Family, LLC.
2 MR. GOLDBERG: Thank you very much.
3 THE WITNESS: Okay. Do you want the
4 number?
5 BY MR. AMAN: (Continuing)
6 Q. The Bates number?
7 A. Yeah.
8 Q. Yeah. Go ahead.
9 A. That’s SDY001320. It shows Mark Neuman as
10 41.98 percent. It shows SSDY001324. It shows
11 Kenyon Neuman at 9.7 percent. SSDY001328 shows
12 Gatlin Neuman as 9.67 percent.
13 Q. And just for the record, you’re looking at
14 the 2008 tax return for Neuman Family, LLC?
15 A. Yes.
16 Q. And so, in that document it has the
17 accurate percentages for the various –
18 A. In the ownership.
19 Q. Correct.
20 A. But it doesn’t have the debt percentages.
21 Q. Understood.
22 A. Those are different, I know.
23 Q. And when you say the debt percentages,
24 debt owed to who or whom?
25 A. The Court; Larry Romaine (phonetic); the

0054
1 seller financer itself, Century Drive.
2 Q. For the Neuman Family, LLC, how did –
3 Well, strike that. Let’s step back.
4 So you had talked about you and your dad.
5 And was it — was it Larry Romaine the one that –
6 your client that had come to you about potentially
7 buying this property?
8 A. Yes.
9 Q. Thank you. And I think we had sort of
10 stopped in talking about ownership interests in the
11 Neuman Family, LLC. And so before we move beyond
12 that, you had said Tim Larkin, yourself, your dad,
13 and Brian Stevens, and Neuman Family, LLC had
14 ownership interests at the beginning in Century
15 Drive, correct?
16 A. Correct.
17 Q. Was there anybody else?
18 A. No.
19 Q. And did that ownership — those ownership
20 percentages change at any time?
21 A. No.
22 Q. So, basically, up until the filing of the
23 bankruptcy it was the same?
24 A. Yeah, it was still the same.
25 Q. And so, you’ve talked about a seller

0055
1 finance note for the property?
2 A. Yes.
3 Q. And what other financing or funding was
4 contributed to the purchase of the property?
5 A. For me, I put in 50,000. And for Tim, he
6 put the 50,000 as far as I know. Just a second. I
7 don’t — I know that Mark and Brian exchanged into
8 their portion, so exchange proceeds. And Neuman
9 Family, they had exchanged into it as well.
10 Q. That 50,000 that you contributed, was that
11 a cash infusion?
12 A. Yes.
13 Q. And what was the source of the funds for
14 that?
15 A. My WaMu cred — line of credit.
16 THE COURT REPORTER: Your what line of
17 credit?
18 THE WITNESS: WaMu, Washington Mutual.
19 BY MR. AMAN: (Continuing)
20 Q. And Neuman Family, LLC, you said that they
21 had exchanged into it. Do you know what the prior
22 property was that they had owned –
23 A. Some –
24 Q. — or that they’d owned? Excuse me.
25 A. Not exactly, but I know it was Awbrey –

0056
1 some Awbrey view lots.
2 Q. Were you ever the manager of Neuman
3 Family, LLC?
4 A. Now I am, but not before.
5 Q. Who was the manager, initially?
6 A. My dad.
7 MR. GOLDBERG: Just to ask for
8 clarification, when you say “before,” do you mean
9 before the bankruptcy filing?
10 THE WITNESS: Right.
11 MR. AMAN: I was going to do that.
12 MR. GOLDBERG: Okay.
13 BY MR. AMAN: (Continuing)
14 Q. So the initial manager was your dad?
15 A. Yes.
16 Q. And when was Neuman Family, LLC
17 incorporated?
18 A. I think — Can I look at this?
19 Q. Sure, if you need to refer to it. And,
20 again, for the record, you’re looking at the 2008
21 tax return?
22 A. Yes.
23 In probably around October ‘05.
24 MR. GOLDBERG: Can you just list the
25 number of the document?

0057
1 THE WITNESS: It’s SSDY001278. And it
2 says, “Date business started October 4th, 2005.”
3 BY MR. AMAN: (Continuing)
4 Q. Did you become aware at the time that
5 Neuman Family, LLC was being created that it was, in
6 fact, being created?
7 A. No. Oh –
8 Q. Let me ask you a different question. Did
9 you — did your dad tell you, “I’m going to create
10 this LLC for — where the members are going to be
11 the kids” –
12 A. Yes.
13 Q. — “and the grandkids”?
14 A. Yes.
15 Q. And what was your understanding of what
16 the purpose of that LLC was?
17 A. To give the kids a conservative investment
18 for, maybe, future college.
19 Q. And did you understand what the source of
20 any funds were that were contributed to the LLC?
21 A. Yes.
22 Q. And what was your understanding of that?
23 A. My — All the kids got 11,000 gifted from
24 my grandpa prior to his passing. And my dad
25 invested in Awbrey view lots with those funds, and

0058
1 they made money. They exchanged out of that and
2 into the mobile home park.
3 Q. Did your dad contribute any capital into
4 Neuman Family, LLC, at the outset?
5 A. He exchanged something else at the outset
6 of Neuman Family, LLC.
7 Q. So that there was the gift for each of the
8 kids and grandkids of $11,000 that was contributed
9 to Neuman Family, LLC, and then your dad took
10 exchange proceeds from some prior transaction and
11 contributed that to the –
12 A. Right.
13 Q. — Neuman Family, LLC?
14 A. Right.
15 Q. And do you know what exchange that was and
16 what property was involved?
17 A. I don’t. I would have to look in my work
18 papers.
19 Q. And what work papers would those be for
20 Neuman Family, LLC?
21 A. This (indicated).
22 Q. And have you produced –
23 A. Oh, you know what? There’s a document in
24 — the ones that I was looking for –
25 Q. That would answer that question?

0059
1 A. That’s in here, yeah.
2 Q. Okay. Well, we’ll get back to that. Now,
3 you mentioned that the ownership of Century Drive
4 Mobile Home Park has not changed. But has the
5 ownership of the property that Century Drive Mobile
6 Home Park has an interest in changed?
7 A. Yes.
8 Q. And how has that changed?
9 A. On July 31st, ‘08, 20 — the LLC sold
10 20.17 percent to Jim Hull.
11 Q. And how did it come about that Mr. Hull
12 ended up being interested in buying an interest in
13 the property?
14 A. I don’t know.
15 Q. Did you have discussions with Mr. Hull
16 before he bought this interest in the property?
17 A. No.
18 Q. When was the first time that you ever met
19 or talked with Mr. Hull?
20 A. It was at a lunch, either — I think it
21 was middle of August at — just a lunch that Tim
22 told me to go to.
23 Q. Were you involved in providing any
24 financial information to Mr. Hull in connection with
25 this purpose of the — the property?

0060
1 A. Tim asked me to give him a P&L and
2 calculate it with a 5 cap. And I gave it to him.
3 But I never talked to Jim Hull.
4 Q. So, basically, Mr. Larkin was handling the
5 negotiation with Mr. Hull. He came to you and said,
6 “I want the P&L with a 5 percent cap rate,” and you
7 provided that to him?
8 A. Yes.
9 Q. Any other information or documentation you
10 provided?
11 A. No.
12 Q. I’d asked you whether you met or talked
13 with Mr. Hull prior to July 31st, ‘08. Did you e-
14 mail with him before –
15 A. No.
16 Q. — that time? And so what were the basic
17 terms — Strike that.
18 Mr. Hull purchased approximately 22
19 percent interest in the property?
20 A. 20.17.
21 Q. 20.17. Sorry. Did — Was that a cash
22 contribution?
23 A. He — Yes, because he exchanged our
24 apartment building into the mobile home park.
25 Q. Was than an exchange that was done by

0061
1 Summit Accommodators?
2 A. Yes.
3 Q. And do you know what was done with the –
4 with the — the proceeds that came in as part of
5 that purchase?
6 A. They kept some in the LLC account, and
7 they distributed the rest pro rata to everybody.
8 Q. Do you know approximately how much was
9 kept in the LLC account? And, again, ballpark in
10 ranges is fine. I just –
11 A. Maybe 20 to 40.
12 Q. Thousand?
13 A. Mm-hm.
14 Q. And what — I’m sorry, I didn’t ask you,
15 what was the — the purchase price for the 20.17
16 percent?
17 A. 900.
18 Q. So then the approximately 850 to 875,000
19 was distributed to the members?
20 A. No. There was a bunch of closed
21 conditions, and I think that brought it down to
22 around 850, and they had probably put 20 to 40 in,
23 and the rest was distributed in.
24 Q. Was any portion of the 800 used to pay off
25 any Inland Capital debt?

0062
1 A. The distributions that were made to Mark
2 and Brian went to Inland Capital, but not for our
3 debt — not for Century Drive debt.
4 Q. Did Century Drive ever — did Century
5 Drive ever receive a loan or any kind of funding
6 from Inland Capital?
7 A. I don’t think so, but they could’ve had
8 one during the time. But it would’ve been short
9 lived and paid off, if we did have one.
10 Q. Who was — What was your role with respect
11 to Century Drive from the outset?
12 A. Mostly I was the manager — account
13 manager, and then did the accounting and the
14 bookkeeping and helped with management-type
15 decisions, working with the park manager on whatever
16 issues needed to be dealt with, like cats –
17 Q. Operation side?
18 A. — and pine cones.
19 Q. So in your role as — in those roles, did
20 you become aware that Inland Capital — whether –
21 excuse me — Inland Capital had made a loan or
22 provided any kind of funding to Century Drive?
23 A. You know, I just don’t remember. If it
24 was, it was short. We could’ve borrowed a temporary
25 loan. I just can’t remember.

0063
1 Q. So how would that typically come about,
2 then? If you were — were you the person that was
3 handling issues that came up where –
4 A. When cash is needed –
5 Q. Yeah. Let me just finish the question.
6 You’re — you’re beating me to it.
7 When there were cash needs for Century
8 Drive, were you the person that was responsible for
9 dealing with that?
10 A. Yes.
11 Q. So what would you do?
12 A. I would tell them we need money and about
13 how much and show them the schedule and show them
14 what we needed.
15 Q. And you would do that in the form of a
16 capital call?
17 A. First, I showed — Well, it would –
18 Mostly, yes. That’s what I did it with. If we
19 needed something immediately — if we would’ve taken
20 a loan and we needed something quick, I would’ve
21 said, “Tim, we need it quick.” And I can’t come up
22 with the calculation of the cap — capital call
23 right now. “But I will do it.” And then I would do
24 it and then I would make the capital call and, you
25 know, whatever — if we did borrow from them, we

0064
1 would have paid them off.
2 Q. Okay. So you would — would this usually
3 be in an e-mail, or would you have meetings with Mr.
4 Larkin?
5 A. E-mail.
6 Q. Did — Prior to July 31st, ‘08 when Mr.
7 Hull came on board, did you have periodic or regular
8 meetings among the Century Drive members?
9 A. Not regular meetings.
10 Q. How frequently would you meet?
11 A. Maybe twice a year. But, mostly, “What do
12 we do with this investment?”
13 Q. And would it be all the members, then, who
14 would participate in those meetings?
15 A. It would be always me and Tim, and maybe
16 Brian and Mark would show up.
17 Q. And since you were involved with multiple
18 investments with your father and other Summit indivi
19 — or other Summit shareholders in some fashion, did
20 you sort of have get-togethers where you had sort of
21 general meetings about the properties?
22 A. Wasn’t that the last question?
23 Q. Well, actually, I’m broadening it out. So
24 let me ask it a little differently. Did you end up
25 meeting with Tim and Mark and Brian about sort of

0065
1 having a global meeting where you talked about all
2 the different properties that you were involved
3 with?
4 A. No.
5 Q. Or would you just meet, as you said, twice
6 a year and just talk about Century Drive?
7 A. We would only meet if there was a need to
8 meet on a specific issue related to the — whatever
9 entity it would be.
10 Q. So if somebody would have an issue come up
11 about Klondike Point, let’s say, and then you would
12 send an e-mail around and you guys would have a
13 meeting if you needed to?
14 A. Right.
15 Q. Would that be fair to say?
16 A. Yes.
17 Q. Let’s talk about compensation or
18 distributions that you received at any time from
19 Century Drive. Did you get paid in your role as a -
20 – as a manager of Century Drive?
21 A. Only for the bookkeeping and tax prep.
22 Q. And that would be similar to what you
23 talked about with Klondike Point?
24 A. Right.
25 Q. Any other payments that you received as

0066
1 compensation, or otherwise, from Century Drive?
2 A. Right now, I’m — Jim and I decided we’re
3 getting paid, so we’re accruing compensation for the
4 work we’re doing, but we have not been paid, because
5 there’s no money, because I’m not charging for my
6 bookkeeping. We have new agreements on
7 compensation, which you have.
8 Q. What’s the rate that you’re charging?
9 A. Four and half percent of gross to me.
10 Four and a half percent of gross to Jim. Plus, Jim
11 gets 1,225 a month for repairs and maintenance.
12 Q. You filed a claim on behalf of Century
13 Drive in this bankruptcy proceeding; is that
14 correct?
15 A. Yes.
16 Q. And what’s the basis for the claim, just
17 generally?
18 A. Well, the shareholders took these monies
19 that they were supposed to be distributed from Jim
20 Hull’s sale. They were supposed to be kept and used
21 for future capital call contributions, because they
22 didn’t pay off any debt. And we would — we were in
23 a serious cash problem if that — those funds
24 weren’t available to us.
25 Q. So going back to the 850,000 that you

0067
1 talked about — approximately 800, I’m sorry. Is it
2 based on that?
3 A. Probably about 800.
4 Q. So based on the use of the $800,000 in
5 funds, correct?
6 A. Yes.
7 Q. And so, you said that there was an
8 agreement that they — would be used to pay off
9 debt; is that correct?
10 A. There was an agreement that we would be in
11 a negative cash problem constantly by them pulling
12 out that money and that we would need them to have
13 that money available for future capital calls due to
14 the extreme negative cash flow problem. What
15 happened is, they took the proceeds without paying
16 off the debt, so we didn’t reduce our debt payments
17 and we sold interest. So we have a lot more money
18 going out than we have coming in.
19 Q. So when you say “they,” who is the they?
20 A. Mark, Brian, and Tim.
21 Q. So Mark, Brian, and Tim in their capacity
22 as members –
23 A. Members.
24 Q. — of the LLC –
25 A. Mm-hm.

0068
1 Q. — correct?
2 A. And Mark was the manager.
3 Q. Okay. So Mark was the manager. And were
4 you also a manager?
5 A. Yes.
6 Q. Did you have meetings where you talked
7 about what was going to happen with the funds that
8 were distributed — Well, excuse me — the funds
9 that came in when Jim Hull purchased his interest?
10 A. We did not have a meeting.
11 Q. And so, did — Were there telephone calls?
12 A. There was a telephone call with Tim.
13 Q. So you and Tim had a telephone call where
14 you talked about what was going to happen with the
15 funds, correct?
16 A. Yes.
17 Q. And approximately when was that? And let
18 me give you — You can tell me: Was it a week
19 before the purchase took place in July of ‘08, or –
20 A. No, it was after the purchase took place,
21 before — before they distributed funds. Yeah, I’m
22 not sure if it was before or after they distributed.
23 I think it was after they distributed the funds.
24 Because I got back — I was on vacation.
25 Q. Okay.

0069
1 A. I got back, and they had distributed
2 funds.
3 Q. Okay. So there was the purchase that
4 occurred July 21st, so money was — where was the
5 money being held after the purchase? In escrow?
6 A. From Jim Hull’s side?
7 Q. Yes.
8 A. Probably at Summit 1031, because it was an
9 exchange.
10 Q. Well, let me ask you differently. On July
11 31st, ‘08 when the — when the deal was done, did
12 you know where the money was?
13 A. I did not know.
14 Q. And then you had a telephone call with Tim
15 Larkin after that date, correct?
16 A. Yes.
17 Q. And the topic of discussion was what’s
18 going to happen with the money?
19 A. Correct.
20 Q. And did you reach an agreement about what
21 was going to happen with the money?
22 A. Yes.
23 Q. What was the agreement?
24 A. That it would be distributed. But when
25 capital calls were made, it would be funding them.

0070
1 They needed to save that money to fund the capital
2 calls. Basically, they were trying to save money on
3 interest expense, I believe. So they were going to
4 reduce whatever interest they were paying, wherever
5 it was. But when we needed the money they were
6 going to contribute it.
7 Q. Okay. So you understood Tim was acting on
8 behalf of Mark and Brian when he had the discussion
9 with you, correct?
10 A. Yes.
11 Q. And so your — your agreement with them
12 was, they can take the money out, correct –
13 A. Correct.
14 Q. — that was being contributed by Mr. Hull?
15 A. Correct.
16 Q. But that when there was a capital call,
17 Mr. Larkin, Mr. Neuman, and Mr. Stevens would agree
18 to make — meet their obligations under the capital
19 call?
20 A. Correct.
21 Q. And that’s — that’s basically the factual
22 background for your — Century — the claim that you
23 filed on behalf of Century Drive against Summit
24 Accommodators?
25 A. Yes.

0071
1 Q. Was Summit Accommodators, Inc. ever a
2 member of Century Drive?
3 A. No.
4 Q. Was there ever — Are you aware of any
5 contract between Century Drive and Summit
6 Accommodators, Inc.?
7 A. No.
8 Q. And then as I understand it, just kind of
9 following through on the basis for your claim, you
10 later, as a manager of Century Drive, made capital
11 calls, correct?
12 A. Correct.
13 Q. And including one in December of 2008 for
14 approximately 8 to $10,000. I can show you to the
15 claim, but that’s in the ballpark, correct?
16 A. Right.
17 Q. And Mr. Stevens and Mr. Neuman and Mr.
18 Larkin didn’t meet their obligations on the capital
19 call, correct?
20 A. Correct.
21 THE VIDEOGRAPHER: We are just a little
22 more than ten minutes away from –
23 MR. AMAN: Okay.
24 THE VIDEOGRAPHER: — changing tapes.
25 MR. AMAN: Thank you.

0072
1 BY MR. AMAN: (Continuing)
2 Q. I forgot to ask you about this, going back
3 to Klondike Point. So let me ask you a few follow-
4 up questions about sort of what’s currently going on
5 at Klondike Point. So who are the current tenants
6 in the Klondike Point Building; I’ll just refer to
7 it?
8 A. Allstate, me.
9 Q. When you say “me,” you mean?
10 A. Studebaker-DeYoung CPA, PC.
11 Q. Was there some kind of an assignment of a
12 lease for Tyler and Studebaker, or did you just take
13 it over on assumption?
14 A. I just took it over on assumption.
15 Q. Did the — Other than just assuming the
16 lease, any of the lease terms change?
17 A. No.
18 Q. You said Allstate, you –
19 A. Pat Solitz Appraisers, Celadon. And
20 that’s it.
21 MR. AMAN: Let me just — You know, this
22 might not be a bad time for us to just take a short
23 break and go off the record. I’ve got a couple more
24 exhibits, and then we can also mark that exhibit as
25 Exhibit 1. So just a couple minutes.

0073
1 THE VIDEOGRAPHER: This marks the end of
2 tape number one in the deposition Stephanie
3 Studebaker-DeYoung. The time is 11:19 a.m. We are
4 off the record.
5 (Whereupon, a short break was taken.)
6 (Whereupon, a document titled “Form 1065
7 U.S. Return of Partnership” for 2008 was marked as
8 Exhibit 1)
9 (Whereupon, a document titled “Klondike
10 Point, LLC Rent Roll as of 5/17/09″ was marked as
11 Exhibit 2)
12 THE VIDEOGRAPHER: Back on the record.
13 Here marks the beginning of tape number two in the
14 deposition of Stephanie Studebaker-DeYoung. The
15 time is 11:28 a.m.
16 BY MR. AMAN: (Continuing)
17 Q. Ms. Studebaker, we are back on the record.
18 I have handed you a document that’s been marked as
19 Exhibit 2 by the court reporter. There you go.
20 Which, just for reference purposes, has SSDY724.
21 And is this a document that you prepared in response
22 to the examina — or the — to Rule 2004 Document
23 Request that I sent you?
24 A. No.
25 Q. Who prepared this document?

0074
1 A. I did.
2 Q. Okay. So it was a document prepared
3 beforehand?
4 A. Right.
5 Q. All right. But it’s a document you
6 provided to us in response to the request, correct?
7 A. Correct.
8 Q. And can you just — What I want to do is
9 figure out for each of the Klondike Point, LLC
10 tenants listed on this document, two things. And so
11 I’ll ask them separately, but I’ll just tell you
12 what they are in advance. The first is where it
13 says monthly rent income. In that column, does that
14 reflect the — the amount that’s required to be paid
15 under the lease?
16 A. Yes.
17 Q. So, for example, for Solitz Appraisal
18 Services, the lease that’s in effect right now,
19 requires that Solitz pay $992.36 in monthly rent?
20 A. Yes.
21 Q. And then for Cam income, that’s their
22 percentage of the commonary maintenance charges,
23 correct?
24 A. Yes. Cam is paid 40 cents.
25 Q. And then, second, were it says monthly

0075
1 rental income, does that reflect what they’re
2 actually paying?
3 A. Yes. Except that a lot of them aren’t
4 there. Skyline Mortgage is not there.
5 Q. Okay. So they’ve left?
6 A. And the — There’s two other vacant ones.
7 Those ones we’re not receiving rents on.
8 Q. 103 and 104 — or 203?
9 A. Yes.
10 Q. But Allstate, Solitz, and Celadon are
11 current tenants?
12 A. Yes.
13 Q. As well as yourself?
14 A. Right.
15 Q. Just out of — a follow-up question on
16 that. So Skyline Mortgage is the only tenant that’s
17 left –
18 A. No.
19 Q. — before their lease term was up,
20 currently?
21 A. No. Their lease term came up in July or
22 something, and that’s when they left.
23 Q. Okay. Okay. So we were — we’ve been
24 talking about entities where you have a common
25 ownership with your father. I just want to try to

0076
1 follow up on those. So the next one that you had
2 was Soco Investments, LLC. So who are — Well,
3 strike that.
4 Who were the original members in the LLC?
5 A. There is a lot of members.
6 Q. What was — Approximately how many,
7 originally?
8 A. Ten, twelve.
9 Q. And has that number changed over time?
10 A. No.
11 Q. So who are the members, to the best of
12 your recollection?
13 A. I would have to look.
14 Q. Okay. But you’re a member, correct?
15 A. Yes.
16 Q. And what’s your percentage ownership
17 interest?
18 A. I don’t know. It’s a weird one, like
19 five, ten. I’m guessing.
20 MR. GOLDBERG: Don’t guess. Don’t guess.
21 MR. AMAN: Yeah. And –
22 THE WITNESS: I’m not — I don’t know.
23 BY MR. AMAN: (Continuing)
24 Q. No, that’s fine. If you don’t remember,
25 that’s okay. We can get documents and look at them.

0077
1 A. Okay.
2 Q. Right now I’m just trying to get some
3 background information, and if we need to get more
4 specific we can do that.
5 And your father is a member; is that
6 correct?
7 A. Yes.
8 Q. Is he a member directly, or through an
9 entity?
10 A. Directly.
11 Q. What about Brian Stevens?
12 A. Same.
13 Q. And Tim Larkin?
14 A. No.
15 Q. Was he ever a member?
16 A. No.
17 Q. What about Lane Lyons?
18 A. No.
19 Q. So what was the — Well, strike that.
20 When was Soco Investments –
21 approximately, when did it start?
22 A. ‘06.
23 Q. And can you just generally describe what
24 investments Soco Investments had and has?
25 A. It has lots in Lapine, mostly not-

0078
1 buildable lots. I think there’s one buildable lot.
2 Q. Is there a name associated with the area
3 in Lapine?
4 A. It’s near the Little Deschutes River.
5 Q. So how did it come about that you became
6 involved in the — in the Soco Investments, LLC?
7 A. My dad thought it was a good investment,
8 these lots down there, because he said they weren’t
9 very much. And, eventually, they will bring water
10 and sewer there and then that would change things.
11 Q. So was it — was it his idea to get you
12 involved in this investment?
13 A. Yes.
14 Q. And so just generally speaking, how often
15 did he come to you and — and offer the opportunity
16 or give you an idea for an investment?
17 A. Probably eight times over my life. Ten.
18 I would say about ten.
19 Q. And so how frequently — let’s just say
20 from 2004 on, how frequently did you see your dad?
21 A. 2001?
22 Q. 2004.
23 A. About once a month.
24 Q. And would you get together for business
25 reasons or personal reasons, or both?

0079
1 A. Both.
2 Q. And what about the other Summit
3 shareholders, how frequently did you see them?
4 A. Tim, probably four times a year. Brian,
5 two times a year. Lane, never.
6 THE COURT REPORTER: Who never?
7 THE WITNESS: Lane.
8 THE COURT REPORTER: Thank you.
9 BY MR. AMAN: (Continuing)
10 Q. Did you — How often were you at the
11 Summit Accommodators’ offices?
12 A. Probably — probably about six — six,
13 eight times, maybe.
14 Q. And for what purposes?
15 A. Either a meeting on an LLC or maybe to
16 stop by and have lunch with my dad, or to have CPE.
17 Sometimes I held CPEs for the CPAs in our community
18 in their conference room.
19 Q. I forgot to ask you this earlier. Did you
20 ever become a certified exchange specialist?
21 A. No.
22 Q. Did you ever take any courses or any
23 training in connection with exchange — exchanges –
24 1031 exchanges?
25 A. A lot of CPE, continuing professional

0080
1 education. But, no, not a specific, I guess,
2 additional training.
3 Q. And when you say you took it in connection
4 with CPE, just — that was on general subject
5 matters they covered?
6 A. No, those are the ones I picked, because
7 there was a lot of exchanges. And most of my
8 clients do — were doing exchanges. They’re in real
9 estate, so I have to know that.
10 Q. Can you estimate the percentage of your
11 business that was either for LLCs that your dad or
12 that the shareholders had an interest in or were in
13 some way connected with Summit Accommodators’ or
14 your dad’s accounting business?
15 A. I would say out of about 250 of revenue,
16 they represented maybe 20.
17 Q. So the remaining 230,000 per year — Is
18 that what you’re –
19 A. No.
20 Q. — you said 250?
21 A. That’s for everybody else, my other
22 clients.
23 Q. And so those are clients who — there were
24 no — no real connection to Neuman and Stevens L –
25 the Stevens and Neuman accounting business from

0081
1 before, or to Summit Accommodators?
2 A. No. There was — When I left Shackleford,
3 Hanson & Parr, so many of those clients came with
4 me, which were clients of Stevens and Neuman before
5 they went to Shackleford, Hanson & Parr. And then
6 they came to mine.
7 Q. So when you said the 20,000, that was more
8 focused on the LLCs that your dad had an interest
9 in?
10 A. Correct.
11 Q. Approximately, how many clients did you
12 have at any one time, ballpark?
13 A. 290.
14 Q. And those would be folks where you would
15 do their tax returns?
16 A. Yes.
17 Q. So you’d do approximately 250, 300 tax
18 returns a year?
19 A. Yes.
20 Q. Are you — are you familiar with the
21 Federal Exchange Accommodators organization?
22 A. Not really.
23 Q. Did you ever attend any of their meetings?
24 A. No.
25 Q. Seen any of their materials?

0082
1 A. No.
2 Q. So going back to Soco Investor — or
3 Investments, LLC, we left off, your dad had said he
4 thought it was a good investment. And what was your
5 — your understanding, generally, about what the –
6 the project was going to be?
7 A. That they were going to try to do a sewer
8 system that we would then connect to as a part of
9 providing sewer to the unbuildable lots.
10 Q. Did — did your dad or any of his entities
11 already own property in the area?
12 A. Yes.
13 Q. And were they going to contribute that as
14 part of the investment in Soco Investments?
15 A. No.
16 Q. They were going to hold it separately?
17 A. Yes.
18 Q. And so, what were — what were the assets
19 that were either acquired or that were going to be
20 acquired by Soco Investments?
21 A. It was lots that Barb and I determined
22 would be good investments to hold for possible –
23 being able to hook up to sewer later.
24 Q. In the same area?
25 A. Yes.

0083
1 Q. And then what happened in terms of that
2 development that you just described? What took
3 place?
4 A. We bought — Everybody put in about — it
5 just depended what they could. But everybody put in
6 usually around 20 grand each. Barb and I were the
7 managers. We decided which properties to purchase.
8 Gary Lewis found properties. He was a member. And
9 then I did all the purchasing, dealing with the
10 buying of those particular lots. Gary Lewis was
11 supposed to fit work on the whole sewer deal part of
12 it. And that’s it. We’re in a holding position
13 because nothing is happening.
14 Q. So in terms of — I think you said that
15 everybody contributed about 20,000; is that correct?
16 A. Yes.
17 Q. So you contributed about 20,000, yourself?
18 A. Yes.
19 Q. What was the source of the funds you
20 contributed?
21 A. Oh, I can’t remember. It was probably my
22 WaMu line.
23 Q. Did anyone contribute anything other than
24 cash?
25 A. No.

0084
1 Q. Did anybody exchange into the investment?
2 A. No.
3 Q. Did you receive any compensation or any
4 distributions at any time from Soco Investments?
5 A. No.
6 Q. Did you do their tax returns? I can’t
7 remember.
8 A. I did. I don’t know if we charged them,
9 because we had a different agreement. I think I may
10 have charged the account.
11 Q. When you say “different agreement,” what
12 was the different agreement?
13 A. Barb and I were supposed to be paid
14 management stuff when and if we sell the properties,
15 but we were supposed to — Because all the time
16 involved in closing on that property, that was going
17 to be charged at a later date.
18 Q. So, basically, some kind of management fee
19 and the work you performed, you were going to
20 receive –
21 A. Later.
22 Q. Did you have an agreement about what that
23 — how that was going to be calculated?
24 A. I think so. I don’t know. I can’t even
25 remember.

0085
1 Q. And we can look at documents. But,
2 basically, it was your — your understanding front
3 end, there was an agreement about what you’d be paid
4 at the back end –
5 A. Yes.
6 Q. — if the project ended up going forward?
7 A. Yes.
8 Q. Did you actually ever receive any
9 compensation or distributions, though, of any kind?
10 A. The only thing I would’ve received from
11 them would’ve been the charge for the tax prep.
12 Q. And that was — as you testified earlier,
13 between 650 and 1,250 –
14 A. Yes.
15 Q. — typically? And then I think the — the
16 last of the entities where you had an ownership
17 interest with your father was SDC Investments, LLC?
18 A. Yes.
19 Q. And so, what — Who are the members of
20 that LLC?
21 A. A lot.
22 Q. Okay. What’s your approximate ownership
23 percentage?
24 A. In SDC?
25 Q. Yes. Well, let me ask you this: Do you

0086
1 have a direct ownership interest?
2 A. No.
3 Q. How are you — How do you hold your
4 ownership interest in SDC?
5 A. I have an ownership interest in Cosobo,
6 LLC, and Cosobo owns something like 26.94 percent of
7 SDC.
8 Q. So SDC Investments has a number of
9 different owners, correct?
10 A. Correct.
11 Q. And is your dad directly an owner of — or
12 was he directly an owner of SDC?
13 A. Yes.
14 Q. What about any of the other Summit
15 principals?
16 A. Brian.
17 Q. And do you know approximately what their
18 percentage ownership interest is?
19 A. I think, together, they’re probably
20 somewhere around 26 or 28 percent.
21 Q. So pretty similar to what Cosobo holds,
22 correct?
23 A. Yes.
24 Q. Does — Are there any entities that you’re
25 aware that Mr. Neuman or Mr. Stevens own an interest

0087
1 in that also have an interest in SDC, so they — Let
2 me ask it better. They own, directly, about 26 to
3 28 percent in SDC. Do they also own, indirectly,
4 for any LLCs?
5 A. No.
6 Q. And Cosobo Investments, what’s your
7 ownership interest in that, percentage-wise?
8 A. I don’t know, exactly. Six or seven
9 percent.
10 Q. Okay. So it’s a small interest?
11 A. Yes.
12 Q. So what is the — what was the activity
13 that SDC Investments was going to be engaged in?
14 A. SDC bought 80 acres of land in the Juniper
15 Ridge area.
16 Q. And how did it come about that SD — Well,
17 strike that.
18 Was SDC formed for the purchase of
19 purchasing these 80 acres?
20 A. I believe so, but I’m not sure.
21 Q. Who was kind of the driving force behind
22 SDC?
23 A. It was Brian Stevens, Doug Creasy, and
24 Eric Duhn.
25 Q. And how did you get involved in the

0088
1 investment?
2 A. My business partner at the time, Brett De-
3 Young, wanted to do an investment with Mark and
4 Brian. I asked my dad if he knew of any investments
5 that would fit Brett and his investor group, and he
6 suggested this one. And so, I did — Brett and I
7 looked at this investment, and at the time they had
8 — it looked like a good investment. Long term for
9 our LLC. More like a ten-year holding for our LLC.
10 Q. And when you say the “LLC,” you mean
11 Cosobo?
12 A. Yes.
13 Q. And when you referred to Mr. De-Young as
14 your business partner at the time, he was one of the
15 other members –
16 A. Of Cosobo.
17 Q. — of Cosobo?
18 A. Yes.
19 Just to help the court reporter, we’ll try
20 not to talk over each other.
21 So what other investments, generally, does
22 Cosobo own?
23 A. None
24 Q. So this was the only one?
25 A. Yes.

0089
1 Q. Was Cosobo created in order to make this
2 investment, or did it already exist?
3 A. It was created in order to make the
4 investment.
5 Q. And so, what were the funding sources for
6 SDC at the outset? And were there capital
7 contributions and so forth?
8 A. At the outset? You mean when they
9 initially purchased it?
10 Q. Well, yes. Let me ask you this: Did you
11 make an investment of capital into SDC Investments?
12 A. Not regularly.
13 Q. Did you at some point?
14 A. Yes.
15 Q. And how much did you invest?
16 A. Our group invested $970,000.
17 Q. And I apologize. I asked — I said “you,”
18 but I realize you’re going through Cosobo. So
19 Cosobo invested $970,000?
20 A. Yes.
21 Q. Did you make a capital investment into
22 Cosobo?
23 A. Yes.
24 Q. And how much?
25 A. 70.

0090
1 Q. And what was the source of the 70 that you
2 contributed to Cosobo?
3 A. My WaMu.
4 THE COURT REPORTER: Your –
5 THE WITNESS: WaMu.
6 BY MR. AMAN: (Continuing)
7 Q. And when you say “WaMu,” that was a line
8 of credit that you had?
9 A. Yes. Can I add one –
10 Q. Sure.
11 A. — small note? I use my line, like, for
12 my — When I have income, I pay down my line. When
13 I need to take stuff out I pulled it out. That’s
14 where I — how I operate that line.
15 Q. So –
16 A. So it would’ve been from my income that I
17 paid down, then I would pull it out and then pay
18 out.
19 Q. Understood. What was the — So SDC was
20 incorporated and created. And then, was it that you
21 put in the nine — Cosobo put in the 970 later
22 because lots were purchased?
23 A. No. We put in the 970 later because Doug
24 Creasy was supposed to come up with that money. And
25 then, I believe he — Inland was lending — lending

0091
1 the money to Doug, and Doug wasn’t able to pay it
2 back. So they said, “Doug, you’re out.” “Cosobo,
3 you can come in, if you want, with us.”
4 Q. So the lots were — Let me — let me see
5 if we can back up just a little bit. So was Cosobo
6 originally a member of SDC?
7 A. No.
8 Q. Mr. Creasy was; is that correct?
9 A. Yes.
10 Q. And Cosobo stepped in and became a member
11 when Mr. Creasy couldn’t meet his obligations to
12 repay a loan to Inland, correct?
13 A. Correct.
14 Q. Is it your understanding that Inland had
15 provided the funding to purchase the lots?
16 A. I don’t know.
17 Q. But what you did know is that Mr. Creasy
18 owed money to Inland?
19 A. Yes.
20 Q. And you were — you were paying the 970 on
21 behalf — Cosobo was paying the 970 in order to pay
22 off the Inland debt?
23 A. Correct.
24 Q. And in — So in return, Cosobo got an
25 ownership interest, a membership interest in SDC?

0092
1 A. Correct.
2 Q. Do you know what the amount of the
3 outstanding balance was from Mr. Creasy to Inland?
4 A. No.
5 Q. So it could be that it was — that the 970
6 was — everything that was owed, it could be less
7 than what was owed, or it could be more than what
8 was owed?
9 A. Correct.
10 Q. Other than the change with Cosobo taking
11 over for Mr. Creasy as a member, were there any
12 other changes in the membership interest in SDC?
13 A. Yes. Doug brought in a few investors
14 about the same time Cosobo came in.
15 Q. Do you recall who those investors were?
16 A. All I know is the one that was my client,
17 Donna Eytchison. There’s some more, but I don’t
18 know — I know — Oh. One main person was Bill
19 Smith.
20 Q. And Doug Creasy, who is — who is Doug
21 Creasy?
22 A. A friend of Brian’s.
23 Q. So somebody that he kind of brought to the
24 — to the investment?
25 A. Yes.

0093
1 Q. And what about Eric Duhn?
2 A. Same. Friend of Brian’s.
3 Q. And Bill Smith, was he one of your
4 clients, also?
5 A. No.
6 Q. Who was he?
7 A. A friend of Brian’s.
8 Q. So, again, this is one that Brian had sort
9 of been the driving force on in terms of bringing
10 people to the table?
11 A. Correct.
12 Q. Other than the loan that you referred to
13 that Mr. Creasy owed back to Inland, was there any
14 other Inland funding that was provided in connection
15 with SDC or Cosobo, to your knowledge?
16 A. Not to my knowledge.
17 Q. Do you know whether or not the Inland loan
18 was — to Mr. Creasy or to SDC was fully paid off?
19 A. I don’t. I don’t think SDC owned — owed
20 Inland money, from what I remember.
21 Q. It was just Mr. Creasy, personally?
22 A. Yes.
23 Q. All right. Were you ever a member of SDC?
24 A. No.
25 Q. Did you ever receive any compensation from

0094
1 SDC?
2 A. I — I’m sorry. I did do some accounting
3 work to revise numbers on a renegotiation with the
4 seller to lower the value. I did a bunch of work to
5 renegotiate with the seller, and the county portion
6 of that I billed for.
7 Q. So it was, at least in part, a seller
8 financed purchase?
9 A. Yes.
10 Q. And, approximately, how much did you get
11 paid for that?
12 A. It was — I think $3,600, somewhere around
13 there.
14 Q. Any other compensation or distributions
15 that you received?
16 A. Only for tax prep.
17 Q. 650 to 1,250?
18 A. Yes.
19 Q. Just to clarify, and you never received
20 any distributions from SDC?
21 A. No.
22 Q. What about Cosobo?
23 A. No.
24 Q. And is it still the case that Cosobo’s
25 only investment is in SDC?

0095
1 A. Yes.
2 Q. And have you personally filed a claim
3 against Summit Accommodators or the — with the
4 bankruptcy court against Summit Accommodators
5 estate?
6 A. No.
7 MR. AMAN: We’re probably getting to a
8 nice breaking point. You want to stop for lunch for
9 a while and come back?
10 MR. GOLDBERG: Sure. Yeah.
11 MR. AMAN: Yeah.
12 MR. GOLDBERG: It seems to be a good idea.
13 MR. AMAN: Yeah.
14 THE VIDEOGRAPHER: Agree to go off the
15 record?
16 MR. AMAN: Yeah.
17 THE VIDEOGRAPHER: Off the record at 11:57
18 a.m.
19 (Whereupon, a lunch break was taken.)
20 THE VIDEOGRAPHER: Back on the record.
21 The time is 1:01 p.m.
22 BY MR. AMAN: (Continuing)
23 Q. Ms. Studebaker, we’re on the record here.
24 I just want to ask a couple follow-up questions.
25 First, did Klondike Point ever file, to your

0096
1 knowledge, a proof of claim in the bankruptcy?
2 A. No.
3 Q. And is it your contention that Klondike
4 Point has any claim against the estate?
5 THE COURT REPORTER: Against the estate?
6 MR. AMAN: Yes.
7 BY MR. AMAN: (Continuing)
8 Q. Have you — Other than anything you’ve
9 already testified to — or this morning, have you
10 received any money from either — any of the Summit
11 shareholders or from any of their entities that they
12 have an ownership interest in since the filing of
13 the bankruptcy?
14 A. No.
15 THE VIDEOGRAPHER: Excuse me. I need you
16 to speak up.
17 THE WITNESS: Okay. No.
18 BY MR. AMAN: (Continuing)
19 Q. Did you receive loans, personally, from
20 Inland Capital?
21 A. One, personally.
22 Q. And could you describe what that loan was
23 for?
24 A. It was for the purchase of a lot in Oregon
25 Water Wonderland in Sunriver.

0097
1 Q. And how much was that loan?
2 A. 100,000.
3 Q. When did that — when did you –
4 approximately, when did that loan — when was that
5 loan made to you?
6 A. Can I look at one of my answers?
7 Q. Yeah, let me get it.
8 THE COURT REPORTER: Can I look at…
9 THE WITNESS: My answers.
10 THE COURT REPORTER: Oh.
11 THE WITNESS: It would have been the one
12 on Snow Goose, which is, like, 23.
13 BY MR. AMAN: (Continuing)
14 Q. Let me — let me read you one of the
15 responses, number 21. Just tell me if this seems
16 accurate: “On August 31st, 2006, I borrowed
17 $100,000 from Inland for the 9/6/06 purchase of this
18 property, initially.”
19 A. Correct.
20 Q. Okay. And so how did — how did it come
21 about that you borrowed the money from Inland?
22 A. Well, my dad said, “You should look at
23 buying one of these lots at Oregon Water
24 Wonderland.” And he told me I should not pay any
25 more than 120. And this one was on sale for 145,

0098
1 and so, he said, “You should offer cash.” And I
2 said, “Well, I haven’t got a loan yet.” And he’s
3 all, “Well you can talk to Tim about getting a
4 short-term loan from Inland.” So I talked to Tim.
5 He said, “That’s fine.” I already talked to Umpqua
6 Bank and they said they would give me a lot loan,
7 but it was going to take anywhere between 30 and 60
8 days. So I got a 60-day loan — temporary loan from
9 Inland.
10 Q. Who at Umpqua Bank did you talk with? Is
11 there a particular person you talked with?
12 A. Mike Donaca.
13 Q. Is that who you dealt with then when you
14 got the loan, then, finally, later on?
15 A. That first loan, yes.
16 Q. And did you get other loans from Umpqua
17 Bank?
18 A. Later, on that particular property I did a
19 construction loan, a permanent loan with Umpqua
20 bank. And that was with Diana Becerril.
21 Q. What was the last name?
22 A. Becerril.
23 Q. Did you get in contact with Mr. Donaca
24 sort of on your own context, or were you referred to
25 him by somebody else?

0099
1 A. From my dad.
2 Q. Any other loans that you had with Umpqua
3 Bank other than the ones you just testified about?
4 A. I have a HELOC. That WaMu HELOC is now
5 Umpqua HELOC.
6 Q. Did you ever receive any other loans from
7 Inland, either directly, or indirectly, related to
8 the purchase of any residential properties?
9 A. No.
10 Q. And did — did your husband ever receive
11 such a loan –
12 A. No.
13 Q. — your former husband? Did — Now, your
14 business — your accounting business at some point
15 in 2003 received loans from Inland as well?
16 A. It was one line of credit — a $15,000
17 line of credit. We took three draws.
18 MR. AMAN: Phones.
19 MR. GOLDBERG: Mine’s off.
20 Can I make one clarification?
21 MR. AMAN: (Nodded.)
22 MR. GOLDBERG: You had said — you had
23 asked, “Were there any other loans, directly or
24 indirectly, for residential property?” We had
25 previously talked about one of the entities, the

0100
1 mobile home park, so I’m just wondering. The
2 “indirectly” is a little vague. So I just –
3 MR. AMAN: Okay. Well, let me ask it — I
4 can ask it more directly.
5 MR. GOLDBERG: Okay.
6 BY MR. AMAN: (Continuing)
7 Q. In 2001 did you, or anyone connected with
8 you, receive a loan for approximately $57,000 to
9 fund the purchase of a home in Bend?
10 A. I believe my dad took a loan to make a
11 down payment on my house.
12 Q. Okay. When you say you believe he did
13 that, did he tell you that he was doing that?
14 A. No.
15 Q. When did you first learn that he had done
16 that?
17 A. About two years after we purchased the
18 house.
19 Q. And how did you learn that?
20 A. He told me he was making interest payments
21 on a loan and — for the down payment on my house
22 and told me that I should have to pay him interest
23 payments. And I said, “But that wasn’t the
24 agreement. So, if you took a loan from Inland, you
25 took a loan from Inland, and you pay the interest

0101
1 payments.”
2 Q. What was the agreement, originally, as you
3 understood it?
4 A. He was going to make the down payment.
5 And when I sold my house I was going to pay him
6 back.
7 Q. Did you, in fact, then, start making
8 interest payments of some kind?
9 A. No.
10 Q. Did you ever pay your dad back the
11 $57,000, approximately?
12 A. No. I –
13 Q. I can — What happened with the $57,000?
14 A. When Inland started — well, not Inland,
15 but Tim’s — I guess they were trying to collect
16 loans. So someone got confused and thought that was
17 my loan and called me — I don’t remember if it was
18 Lane or Tim — and asked me about paying that back.
19 And I said, “It’s not my loan. You will have to
20 talk to Dad.” And then Dad took me to lunch and he
21 said I should pay him back. And I said, “That
22 wasn’t the deal. It’s when I sell the house is when
23 I pay you back.” And he said, “Well, sometime you
24 are supposed to pay me back.” “Well, that’s not the
25 deal.” And I said, “Why don’t we — why don’t you

0102
1 gift it?” Well, he’s not in to gifting to me. And
2 I said, “Well, why don’t you look at it like my
3 college education, because I paid for 100 percent of
4 my college education?” And he was helping my
5 siblings with their college education. And I said,
6 “I did everything you wanted me to do.” And he
7 believed I made a good case and just decided to gift
8 it to me.
9 Q. Approximately, when was that?
10 A. That was in 2007.
11 Q. When you reached your agreement way back
12 when you purchased the house, did you — was that
13 ever in writing?
14 A. No.
15 Q. Do you still own the house?
16 A. I — My name is on it, but it is my ex-
17 husband’s house.
18 Q. When you say it’s your ex-husband’s house,
19 you mean he’s living there, but you guys both –
20 it’s in both your names? Or –
21 A. In both our names, because he can’t get
22 financing.
23 Q. I just want to shift gears a little bit
24 and talk about the objections that you filed and ask
25 some questions about that. One of the — I’ll just

0103
1 call them arguments, statements that you make in
2 your fee objections is that the trustee has either
3 ignored or not responded to or not agreed to accept
4 certain offers that you contend were fair market
5 value offers. Is that a fair statement?
6 A. Yes.
7 Q. All right. And then, I think on one of
8 the exhibits that I can show you, you list three
9 properties or LLCs that are examples of situations
10 where the trustee sort of hasn’t done his job. Do
11 you — do you recall that?
12 A. Yes.
13 Q. And those three are Klondike Point, Smith
14 Brothers, and Boulder House?
15 A. Correct.
16 Q. So I just want to talk about those three
17 real quick. And again, I’ve got the fee objections.
18 I can show them to you if you need to refresh your
19 memory. But if we get to that point we can do that,
20 okay?
21 A. Okay.
22 Q. So first, with respect to the Boulder
23 House, what’s your understanding about who owns the
24 Boulder House?
25 A. My dad owns half and my brother owns half.

0104
1 Q. And how did you — how did you become
2 aware of that?
3 A. That was from preparing their tax returns.
4 Q. Do you know whether or not — and you say
5 your brother, that’s Kenyon?
6 A. Yes.
7 Q. Do you know whether your brother, Kenyon,
8 contributed any funding to the purchase of the
9 property?
10 A. I don’t think so, but I’m not sure.
11 Q. Have you been informed about the
12 discussions between your father and/or your brother
13 and the trustee or anyone acting on his behalf about
14 the Boulder House? Let me ask it differently. What
15 I’m getting at is: Do you have information about
16 what discussions have taken place between the
17 trustee, on the one hand, and either your brother or
18 your dad, on the other hand, about the Boulder
19 House?
20 A. No, only the discussions I had with the
21 trustee.
22 Q. And what were those discussions? Can you
23 describe them for this?
24 A. I had an e-mail about it. Because, at the
25 meeting with you, Kevin said that he was going to

0105
1 bring value to the estate and mitigate cost. And
2 this was one single-residential home. And the value
3 — the offer that came in was fair market value
4 under the conditions of our economy right now, and
5 it brought quite a bit in to the estate. And he
6 just flat out didn’t respond or even counter offer
7 on the first offer. And then he rejected, I
8 believe, the second offer. And then my brother said
9 he’d give up his 50 percent if he would accept the
10 offer if the buyers put it in one more time. And he
11 rejected that offer as well.
12 Q. Do you know who the buyers were that were
13 making the offer?
14 A. They were parents of a kid that ran on my
15 brother’s track team.
16 Q. And do you know the amount of what that
17 offer was?
18 A. It was — I know the property was list –
19 was going to be listed at 530 per an agreement
20 between Terry Vance and my dad and the listing
21 agent, and she was supposed to get six percent
22 commission. The offer came in via word of mouth,
23 because Kenyon was on a track team with this kid.
24 So the offer came in at 500, and the listing agent
25 agreed to a one percent commission. The different

0106
1 in net proceeds would have only been $3,600.
2 Q. Okay. Anything else that you know about
3 the discussions with the trustee or any work the
4 trustee has done with respect to the Boulder House?
5 A. Yes. Kenyon’s attorney said that he is
6 listing it — or he wanted to list it, but he wants
7 Kenyon to turn over his interest first.
8 Q. And who is his attorney; do you recall?
9 A. Michael — Michael O’Brien.
10 Q. And you’ve spoken with him about this?
11 A. No, I got an e-mail.
12 Q. So let’s talk about Smith Brothers. What
13 information do you have about the discussions
14 between, if any, Smith Brothers and the trustee?
15 A. I don’t know. The discussions between –
16 I wasn’t part of the discussions.
17 Q. Did you have discussions with anyone
18 acting on behalf of Smith Brothers?
19 A. With Dennis Marshall.
20 Q. And what were those discussions? Can you
21 describe them?
22 A. He said that he made a good offer with
23 Terry Vance. And Obsidian wasn’t getting back to
24 him on their offer. And he told me that he had a
25 phone conversation with Ewan Rose, and Ewan Rose

0107
1 said that he — Dennis needed to hand over all this
2 information over to him via prior to Kevin being the
3 trustee. And Dennis told him no. And he told me
4 that Ewan Rose said that – “Don’t worry about it.
5 In two weeks we’ll own two thirds of your company,
6 anyways.” That’s all.
7 Q. At that was the end of your discussions
8 with Mr. Marshall?
9 A. That was all on one — first conversation.
10 Another telephone conversation he said that he –
11 they’re a million dollars off of the price. And
12 then the last conversation is he — all of a sudden
13 the tone changed at Obsidian, and they are working
14 on an agreement.
15 Q. And was that your discussion with him?
16 A. Yes.
17 Q. Did you do any separate due diligence on
18 your own to try to understand the value of this –
19 any interest held in connection with Smith Brothers?
20 A. No.
21 Q. So let’s talk about Klondike Point. Did
22 you, at some point, make an offer for the trustee –
23 for the interest held by the trustee in Klondike
24 Point?
25 A. Yes.

0108
1 Q. And how did you arrive at that number that
2 you offered?
3 A. I had Dan Steel Hammer work out all the
4 leases and comparables and come up with a value that
5 he thought was a fair market value.
6 Q. And who is Dan Steel Hammer?
7 A. He’s a Realtor and attorney — U.S.
8 Attorney.
9 Q. And what was the approximate amount of
10 cash that would’ve come to the estate as a result of
11 that offer?
12 A. I believe it was $28,000.
13 Q. Now, did you, at some point, make a
14 valuation of the trustee’s interest where the cash
15 value of it was over $250,000?
16 A. Very early on in January.
17 Q. Okay.
18 A. Or February. January. And, actually, I
19 don’t know if that was the number. I would have to
20 look back.
21 MR. AMAN: I’m going to go ahead and mark
22 this as Exhibit 4 — 3.
23 (Whereupon, an e-mail from Mr. Larkin to
24 Ms. Studebaker, dated 1/27/09, was marked as Exhibit
25 3 for identification.)

0109
1 MR. AMAN: For the record, it’s Exhibit 8
2 to Kevin Padrick’s Declaration we submitted in
3 response to the fee objections.
4 And, Matt, for your purposes here’s a
5 complete copy of that; the objection.
6 MR. GOLDBERG: Thank you.
7 BY MR. AMAN: (Continuing)
8 Q. So, Ms. Studebaker, I’ll let you look at
9 that, and you can take as much time as you want.
10 I’ll just tell you that was Exhibit 8 to Mr.
11 Padrick’s Declaration in response to the fee
12 objections that you filed. The documents are from
13 the documents that you provided to us in response to
14 the document request we sent you. And there’s a
15 January 26, 2009 e-mail that refers to the valuation
16 that I’ve just been speaking about.
17 A. What day?
18 Q. It’s in the series of –
19 A. Oh.
20 Q. — e-mails, if you keep looking at them.
21 MR. GOLDBERG: Can we — is it — is it
22 SSDY — triple zero — 000179?
23 MR. AMAN: Yeah. I just gave mine away.
24 MR. GOLDBERG: Let me — You can just look
25 at –

0110
1 THE WITNESS: It says 175.
2 MR. GOLDBERG: Is it — is it this
3 (indicated)?
4 MR. AMAN: Yeah. I gave you mine, so,
5 yes.
6 MR. GOLDBERG: Okay. So it’s — Do you –
7 do you see what it is — the page? I think what
8 he’s specifically getting at is the — is the 179
9 page.
10 THE WITNESS: This was dated –
11 MR. GOLDBERG: You go — turn forward one
12 page, and that’s where the e-mail that Mr. Aman is
13 referring to from — from January 26th. That’s
14 where it starts. Do you see that?
15 THE WITNESS: Mm-hm. This is the first
16 part of it. Yeah. That’s what I came up with as
17 the fair market value of the time — at that time.
18 BY MR. AMAN: (Continuing)
19 Q. So as of January 26th, 2009, your fair
20 market valuation would have resulted in you
21 receiving $291,000 for the Klondike Point interest L
22 — not you, the — Klondike Point receiving the
23 $291,000 in cash additional for the trustee’s
24 interest, which you were trying to purchase,
25 correct?

0111
1 A. It looks like 238.
2 Q. 238? Okay. But when you made an offer
3 two months later, approximately, to the trustee to
4 purchase his interest, you offered $25,000 cash or
5 $28,000 in cash, correct?
6 A. Correct.
7 Q. So I want to shift gears a little bit and
8 ask you some — about some of the other objections
9 that you raised. One objection –
10 A. Can I — I would like to add on that one,
11 if I can.
12 Q. Sure. If you have something you want to
13 add, go ahead.
14 A. This is my starting price for dealing with
15 the potential buyer. The potential buyer said,
16 “Hell, no.” And he came back with — if you look on
17 the SDY00175 — 840,000. And 840,000 is the price
18 that I started off in negotiations, was the 1.1 –
19 1.109, right? He said, “Hell, no.” He said, “840.”
20 And for the 840, he wanted me and my company to sign
21 a five-year lease and he wanted me to increase my
22 rent by $600 a month. So he — that’s how he
23 derived at an 840 price, is as if he had a five-year
24 lease with an increase of $600 a month in rent,
25 which is — just because we’re talking about value

0112
1 here doesn’t mean that’s the value. And when I went
2 to Dan Steel Hammer to give a thorough analysis of
3 the pricing, he came up with the 670 one.
4 Q. So you valued the property at 1. — as
5 worth 1.1 million. Somebody else valued it at 840,
6 and then somebody else valued it at 670, correct?
7 A. Correct. Correct. Oh, and one more
8 thing. During this time we keep losing tenants.
9 And the lease rates in this town have decreased from
10 a buck 45 to about 89 cents per square foot.
11 Q. So I want to ask you about your
12 objections, about an excess — excessive time
13 entries and conferences and so forth. So my first
14 question is: Have you ever been an attorney in a
15 bankruptcy proceeding before?
16 A. No.
17 Q. Do you have a legal background?
18 A. No.
19 Q. Have you ever acted as a trustee in a
20 bankruptcy proceeding?
21 A. No.
22 Q. Have you ever participated in a bankruptcy
23 proceeding before this?
24 A. No.
25 Q. I asked you earlier about your experience

0113
1 with 1031 exchanges and some questions about that,
2 so I kind of want to circle back to that, because
3 one of the bases in which you’ve objected to the fee
4 application for the trustee and his advisers is the
5 way in which 1031 exchanges were handled.
6 A. Correct.
7 Q. So, now, did you participate in the
8 discussions between the trustee and other exchange
9 accommodators concerning whether or not they would
10 handle exchanges that Summit Accommodators had been
11 involved with?
12 A. No.
13 Q. And, in fact, you’d never seen that
14 exchange before, have you? Isn’t that what you told
15 me earlier?
16 A. I have not.
17 Q. But you hadn’t before the bankruptcy was
18 filed?
19 A. No, this is when the bankruptcy was filed.
20 Q. And did you ever participate in the
21 mechanics of the 1031 exchange before the bankruptcy
22 was filed, as an accommodator?
23 A. No.
24 Q. Other than assigning out work or exchanges
25 to other exchange accommodators, what would you, in

0114
1 your — in the basis of your objecting to the fees
2 have had the trustee do differently with respect to
3 1031 exchanges?
4 A. Other than hire someone who knew what they
5 were doing?
6 Q. Other than having other exchange
7 accommodators come on board.
8 A. That would be the only thing I would
9 suggest.
10 Q. Okay. Were you involved in any of the
11 discussions between the trustee and the shareholders
12 of Summit with respect to their transfer –
13 potential transfer of assets to the trustee or to
14 the estate?
15 A. Yes.
16 Q. And what was your involvement?
17 A. The presentation that Kevin gave us on the
18 12th of February.
19 Q. Okay.
20 A. I had some e-mails with Ms. Vivienne
21 Popperl that had probably information on suggestions
22 of how to transfer assets that I believe she turned
23 over to Kevin. And I had phone calls with Kevin
24 about various things like the bond, like getting
25 things done quickly, and doing it in a way that

0115
1 keeps the value in the estate.
2 Q. And what was it that you told Mr. Padrick
3 he should be doing, if anything, differently than he
4 was doing?
5 A. That he should put it in three — put the
6 properties in three different buckets; one for
7 closing properties with no value. Two, I think it
8 was properties that the shareholders owned a hundred
9 percent of that, you know, that can go over right
10 away. And, three, ones that have other partners
11 that would cause a decrease in value by a global
12 transfer.
13 Q. Anything else?
14 A. No.
15 Q. And you were one of the other partners in
16 that third bucket, correct?
17 A. Yes.
18 Q. Did you ever attempt to perform a
19 valuation of the assets that were held by the
20 shareholders that were transferred over to — to the
21 trustee?
22 A. Yes.
23 Q. And how did you perform that valuation?
24 What did you do?
25 A. I did an Excel spreadsheet off of the

0116
1 spreadsheet that Tim Larkin prepared that Obsidian
2 kind of had added to. I took from that, then I
3 adjusted the numbers based on asking people
4 questions and gave it to the U.S. attorney.
5 Q. And when you say “asking people
6 questions,” what do you mean by that?
7 A. Like, for instance, if I didn’t know what
8 the value of a property was in Arizona that Bruce
9 Johnson owned, I called Bruce and asked him.
10 Q. Anything else that you did other than
11 calling Mr. Thompson or –
12 A. I — I talked to Brian. I talked to Mark.
13 I went through every one to see how they were owned.
14 I could see by the schedule kind of how they were
15 owned, and just went through one property at a time.
16 Q. Did you do any analysis of comparable
17 sales in the market?
18 A. I didn’t have time to do that, no.
19 Q. So it was either based on information that
20 was already in the schedule or updates of
21 information you got from talking to either partners
22 in the particular LLC — or the members, I should
23 say –
24 A. Correct.
25 Q. — or talking to the Summit shareholders?

0117
1 A. Correct.
2 Q. Did you have any discussions with any of
3 the Summit shareholders about any concerns that they
4 expressed in turn — in terms of transferring the
5 assets over to the estate?
6 A. Mostly the exact same concerns I just –
7 what we talked about at the presentation, which was
8 transferring out assets that were prohibited
9 transfers and the three different tranches of assets
10 that were supposed to be transferred.
11 Q. Did they ever explain to you any concerns
12 they had about the transfer of assets potentially
13 resulting in claims being bought against them by
14 other parties, including Umpqua Bank –
15 A. Yes.
16 Q. — or any statements made to them by
17 anyone representing Umpqua Bank about the impact of
18 the transfer?
19 A. No.
20 Q. And do you know whether or not that
21 interfered with the efforts to get a transfer of the
22 assets?
23 A. I don’t think so. I don’t know.
24 Q. Just shifting gears a little bit. Did you
25 ever become aware of the Summit shareholders having

0118
1 any discussions with Umpqua bank beyond just having
2 a banking relationship with them?
3 A. I did after.
4 Q. I’m sorry. Let me ask it differently,
5 okay? Prior to the bankruptcy filing, did you ever
6 become aware that the shareholders were having
7 discussions with Umpqua Bank about a relationship
8 sort of beyond the general banking relationship?
9 A. No.
10 Q. Did you understand, at any time prior to
11 the bankruptcy filing, that the shareholders were
12 making efforts to try to secure either some kind of
13 a strategic alliance with the bank or any other kind
14 of broader relationship with the bank?
15 A. No.
16 Q. Did you ever refer business to Summit –
17 or exchange — Summit exchange business, I should
18 say?
19 A. Yes.
20 Q. So who would you refer to Summit? Your
21 clients?
22 A. Yes.
23 Q. Is there anyone else that you knew needed
24 to have an exchange done, basically?
25 A. Yep. Right.

0119
1 Q. And as part of that, did you do any review
2 of the marketing materials or anything else that
3 Summit had?
4 A. No.
5 Q. So, basically, it was your dad’s business,
6 and so you referred work over to him?
7 A. I referred work over to them, because I
8 thought they were the best at 1031 exchanges.
9 Q. And what led you to that conclusion?
10 A. Because they were CPAs that were qualified
11 in intermediaries, and the combination leads them to
12 have more knowledge at helping their clients.
13 Q. To try to figure out what the strategies
14 are to deal with the tax implications?
15 A. That’s right.
16 Q. And is that — is that how you saw them
17 holding themselves out to the public?
18 A. I saw them as just real estate exchange
19 experts.
20 Q. Did you ever have any — Strike that.
21 Did you ever hear or see anything from the
22 Summit shareholders where they discussed the safety
23 of the funds that were in the Summit accounts?
24 A. No.
25 Q. Is that an issue that you ever heard

0120
1 discussed at any time?
2 A. No.
3 Q. Did you ever receive any questions about
4 that from anyone that you referred to Summit?
5 A. No.
6 Q. Did you ever have any involvement with any
7 of the law firms that were representing Summit or
8 Inland in connection with anything that Summit or
9 Inland was doing?
10 A. No.
11 Q. Let me give you a couple names to see if
12 it rings a bell. So, Bryant Lovlien? Did you ever
13 have any dealings with him in connection with any of
14 the Summit business?
15 A. No.
16 Q. Hurley Lynch?
17 A. No.
18 Q. And what about Jason Conger?
19 A. Uh — No.
20 Q. And did you ever have any dealings with
21 Mr. Conger?
22 A. Yes.
23 Q. And what were those dealings?
24 A. SDC. And he helped me with the –
25 reviewing the documents. Klondike Point, he helped

0121
1 me with understanding my operating agreement. And
2 so, also Century Drive Mobile Home Park. Oh, and he
3 helped with Soco — with Soco — setting up Soco.
4 Q. So he — he provided some legal services
5 in connection with those four LLCs that you were a
6 member with with your father?
7 A. Correct.
8 Q. And when was that? What time periods,
9 generally?
10 A. Klondike and Century was just in January
11 of this year. Soco was when we set up Soco, and SDC
12 was last July ‘08.
13 Q. Did Mr. Conger have a membership interest
14 in any of those entities?
15 A. No.
16 Q. Did you ever have any dealings with Erich
17 Schultz or Howard Friedman from Compass in
18 connection with any investments they were making
19 with your father?
20 A. What do you mean, “dealings”?
21 Q. Well, did you ever talk to them about it?
22 A. No.
23 Q. Did you ever have any e-mail
24 communications with them?
25 A. No, only on tax prep.

0122
1 Q. So you did the tax returns for some of the
2 entities that they were involved with, correct?
3 A. Yeah. Galveston Point and Sisters Mobile
4 Home Park.
5 Q. So in connection with that, you would just
6 have e-mail communications where they would provide
7 you information and you would provide them
8 information; is that right?
9 A. For the tax return.
10 Q Did you end up meeting with them?
11 A. No.
12 Q. On behalf of any of the other entities
13 that you were involved with as a manager or an owner
14 — so the four that we’ve talked about — did you
15 have any dealings with any of the law firms or
16 lawyers representing those entities?
17 A. Representing those entities? No, not that
18 I recall.
19 Q. So one of the — You’ve referred to
20 earlier the meeting that you had with Mr. Padrick on
21 February 12th of this year. And there’s a video
22 recording made of that — that meeting, correct?
23 A. Yes.
24 Q. Do you know who made the video recording?
25 A. I did.

0123
1 Q. Was it on your computer?
2 A. Yes.
3 Q. And why did you do that?
4 A. Because I thought it was a semi-public
5 meeting. And it — I looked at the law, and it said
6 I could record it if I thought it was court ordered
7 in a semi-public meeting and I didn’t conceal it.
8 Q. Okay. So you say you didn’t conceal it.
9 Where was it?
10 A. It was right on the back counter facing –
11 Okay. If there was a counter here (indicated), it
12 was right here, and they were right there
13 (indicated).
14 Q. Did you — did you hear Mr. Padrick say he
15 didn’t want anybody to take verbatim notes?
16 A. Yes.
17 Q. And did it surprise you he would say that
18 –
19 A. Yes.
20 Q. — when you knew there was a video camera
21 going?
22 A. What was that?
23 Q. Did it surprise you that he would say that
24 when you knew that there was a video camera running?
25 MR. GOLDBERG: Could you — Can you

0124
1 rephrase the question?
2 MR. AMAN: Sure.
3 BY MR. AMAN: (Continuing)
4 Q. You knew there was a video camera running,
5 correct?
6 A. Correct.
7 Q. Which means that every word that somebody
8 said was going to be recorded, right?
9 A. Correct.
10 Q. So didn’t it surprise you when he said,
11 “Well, I don’t want you to take verbatim notes”?
12 A. Yes.
13 Q. And why didn’t you say to him, “Well,
14 there’s a video camera recording. Of course we’re
15 going to have verbatim notes”?
16 A. Because he was acting very strange, and I
17 really didn’t know what to do. I didn’t understand
18 why he was saying not to take notes at a meeting.
19 And I wasn’t expecting that.
20 Q. Okay. Now, you said this was a court
21 ordered meeting?
22 A. No. The judge instructed us to have the
23 meeting at the hearing. It was my understanding
24 that the judge instructed us to have the meeting.
25 Q. When you were at the meet — you were at

0125
1 the hearing where he said that?
2 A. Yes.
3 MR. GOLDBERG: I just want to interpose a
4 potential objection with respect to relevance.
5 And you’re going to still answer the
6 questions.
7 But the scope of a 2004 Exam is extremely
8 broad, but the impact that the answers to these
9 questions may have on the estate is starting to feel
10 somewhat attenuated to me.
11 MR. AMAN: Okay.
12 BY MR. AMAN: (Continuing)
13 Q. Did anyone else at the meeting, other than
14 you — Well, strike that.
15 Did you tell anyone else that was at the
16 meeting on February 12th that you were tape — that
17 you were video recording?
18 A. Yes.
19 Q. Who did you tell?
20 A. Terry Vance; Tim Larkin; Jan Neuman, my
21 stepmom; Mark Neuman.
22 Q. And you told them that before the taping
23 began?
24 A. Correct.
25 Q. Was there a meeting that you had before

0126
1 the meeting with Mr. Padrick?
2 A. No.
3 Q. So how did you tell him that you were
4 recording?
5 A. Well, I said, “I have a laptop to record
6 this” — to Terry Vance — “Should I bring it in?”
7 He said, “Yes.” So I brought it in.
8 Q. And where did you have that discussion
9 with him?
10 A. In the same conference room, just when I
11 walked in the door.
12 Q. The same day?
13 A. Yes.
14 Q. Did you — I know you sought legal advice
15 at some point. You provided us with the e-mail –
16 or the letter you got back from Mr. Anderson –
17 A. Yes.
18 Q. — in connection with this video
19 recording. Did you seek legal advice before you did
20 the video recording?
21 A. No. I just researched it on my own. I
22 didn’t have enough time to seek legal advice. The
23 hearing where the judge told us to have the
24 presentation was on the 11th, and we had the
25 presentation at 9:00 in the morning. So I did the

0127
1 research that night.
2 Q. Did you audio record any hearings in the
3 court?
4 A. No.
5 Q. You never did?
6 A. No.
7 Q. Are you aware of anyone else doing that?
8 A. No.
9 MR. AMAN: I think we’ll take a little
10 break. We’re getting there. We’re getting closer.
11 MR. GOLDBERG: Okay. I want you to build
12 in some time for me to ask –
13 MR. AMAN: You want to ask some questions?
14 MR. GOLDBERG: — some follow-ups. Yeah.
15 MR. AMAN: Sure.
16 THE VIDEOGRAPHER: Are we agreed to go off
17 the record?
18 MR. AMAN: Yeah.
19 THE VIDEOGRAPHER: Off the record at 1:49
20 p.m.
21 (Whereupon, a short break was taken.)
22 THE VIDEOGRAPHER: We are back on the
23 record. The time is 1:57 p.m.
24 BY MR. AMAN: (Continuing)
25 Q. Ms. Studebaker, we’re getting pretty close

0128
1 to being done here today. I have a few more follow-
2 up questions. I asked you about discussions that
3 were about Umpqua, generally, and the efforts that
4 the shareholders may have made to talk to Umpqua,
5 and you answered that you didn’t know about that or
6 didn’t have any information before the bankruptcy
7 was filed. I just want to ask kind of a follow-up
8 question about that. Have you had any discussions
9 with any attorneys or any representative of Umpqua
10 since the bankruptcy has been filed?
11 A. Yes.
12 Q. And who have you had discussions with?
13 A. Steve Philpott and John Stewart.
14 Q. And when did you talk to them?
15 A. I talked to Steve somewhere in the
16 beginning of July. And I talked to John, and it was
17 when I was on vacation — before I left for
18 vacation.
19 Q. Okay. I can’t remember –
20 A. It was when you were harassing me,
21 remember? I’m sorry. It was before then.
22 Q. So Mr. Philpott, how did it come about
23 that you ended up talking to him?
24 A. I contacted Kristi Chick, Mike Donaca, and
25 said I’m going to file an objection to the fees and

0129
1 that maybe they would want some of this information.
2 Q. And why did you do that?
3 A. Because I don’t think you guys have a very
4 good case. And I would like to help people who
5 aren’t guilty.
6 Q. And so you told Mr. Donaca and Ms. Chick
7 that you were going to be filing this. And then
8 what happened?
9 A. I just gave them copies of the objection,
10 and that was it.
11 Q. But how did that lead to your discussion
12 with Mr. Philpott?
13 A. Mr. Philpott just called, and he said he
14 wanted to talk to me and asked me who I am, what am
15 I doing, and that was it.
16 Q. How long was the call?
17 A. Ten — ten minutes.
18 Q. Anything else that you talked about?
19 A. No.
20 Q. Did you offer any opinions about the
21 lawsuit?
22 A. No.
23 Q. Did you offer any opinions about –
24 MR. GOLDBERG: I’m sorry? The law suit?
25 MR. AMAN: Yeah, against Don Balische

0130
1 (phonetic).
2 MR. GOLDBERG: Okay.
3 BY MR. AMAN: (Continuing)
4 Q. Did you off –
5 A. Oh, I probably did. I probably said,
6 “This is a stupid lawsuit,” something to that.
7 Q. Now, did you offer any opinions about Mr.
8 Padrick?
9 A. I don’t think I did. I think I just said
10 I don’t really like him that much.
11 Q. Did you agree to provide any sort of
12 cooperation or assistance to Umpqua in connection
13 with the lawsuit that the trustees filed?
14 A. I said that if they needed help, I would
15 help them.
16 Q. Did you take any notes of the call?
17 A. No.
18 Q. Did you record it?
19 A. No.
20 Q. And then you had a discussion with Mr.
21 Stewart as well?
22 A. Yes.
23 Q. And how did that come about?
24 A. He called and asked to meet with me.
25 Q. And did you actually meet with him?

0131
1 A. Yes.
2 Q. And when was that?
3 A. Before I left on my honeymoon, which was -
4 – it would have been middle of July.
5 Q. And where did you meet?
6 A. At his office in Portland.
7 Q. Did you drive up there specifically to
8 meet with him?
9 A. Yes.
10 Q. How long was the meeting?
11 A. About an hour.
12 Q. And could you describe what you discussed
13 at the meeting?
14 A. He asked me how I was involved and he
15 explained how he saw that he was just a bank giving
16 demand — or having demand accounts for a client.
17 “And this is ridiculous, because why would we not
18 say we don’t want your money? We’re a bank.” But
19 they didn’t make any deals other than, you know,
20 provide deposit accounts for Summit. And he thought
21 that Summit was acting like a bank — or Summit,
22 Inland, whatever, was acting like a bank. And he
23 said — We had a big disagreement about how the
24 bankruptcy laws are broken. And he said it’s been
25 broken for however many years, and there’s only so

0132
1 many Erin Brockoviches. And although what I’m doing
2 is admirable, I’m probably gonna get my ass whooped,
3 because I’m against a bunch of attorneys. And I
4 don’t know the judicial things like you do.
5 Q. Did you — any — anything else that you
6 talked about during that meeting?
7 A. No.
8 Q. Did you talk about your opinions about
9 whether or not what your dad was doing was okay?
10 A. No. Oh, yes.
11 Q. And what did you tell him?
12 A. I said I didn’t think it was against the
13 law because it was not regulated.
14 Q. Did you tell Mr. Stewart that you’d be
15 happy to provide assistance and cooperation with
16 Umpqua in the lawsuit?
17 A. He kind of pissed me off about the Erin
18 Brockovich comment. So I sort of said, you know,
19 “If I can be of assistance, fine.” But I really
20 just disregarded the whole thing.
21 Q. Did you take notes of your meeting?
22 A. No.
23 Q. You hired Mr. Opera on behalf of Century
24 Drive and Klondike Point; is that correct?
25 A. Yes.

0133
1 Q. And how did you get in contact with Mr.
2 Opera?
3 A. I asked Jason Conger who he would
4 recommend. He said Johnston Mitchell or Robert
5 Opera.
6 Q. Had Mr. Opera provided any legal services
7 to the — those entities, Century Drive and Klondike
8 Point before?
9 A. No.
10 Q. So this was sort of the first time you
11 dealt with them?
12 A. Yes.
13 Q. This will be a quick topic, but I just
14 want to follow up on a couple things. You have
15 maintained a Web site relating to this bankruptcy
16 proceeding, correct?
17 A. Correct.
18 Q. And it’s summit1031bkjustice.com?
19 A. Correct.
20 Q. And you’re the person that’s responsible
21 for the content on the Web site, correct?
22 A. Correct.
23 Q. Did you hire Crystal Cox?
24 A. No.
25 Q. Have you paid her for any services she’s

0134
1 performed?
2 A. No.
3 Q. Do you know if anyone has in connection
4 with the bankruptcy proceeding?
5 A. I don’t think so.
6 Q. Did you contact her at any time to — to
7 take any steps on the Internet in connection with
8 the bankruptcy proceeding?
9 A. No.
10 Q. She did it on her own, as far as you know?
11 A. Yes.
12 Q. Have you talked to her?
13 A. Yes.
14 Q. And that’s what she told you?
15 A. Yes.
16 Q. And that’s what she told you; she did it
17 on her own?
18 A. She told me that my — she got an e-mail
19 from my ex-husband that was personal that had the
20 Web site, and she was attacking me on the Internet.
21 That’s how I met her.
22 Q. Okay.
23 A. And then I told her — She said –
24 “Knowledge is Power” — at the bottom of her name
25 tag. And I said well, “I have a bunch of knowledge

0135
1 here. I’m trying to let people know what it is.
2 I’m not trying to fight for my inheritance. It’s
3 been handed over to the estate. I’m trying to get
4 the creditors paid.” And she read into my Web site
5 and told me she thinks it’s too much to be bullshit,
6 and that she wants to make my site seen.
7 Q. And I apologize, but I need to ask a
8 couple questions. You said there was a personal e-
9 mail between your ex-husband and Crystal Cox?
10 A. Yes.
11 Q. Was — Did they have a relationship?
12 A. No.
13 Q. So what was the nature of the personal
14 e-mail?
15 MR. GOLDBERG: Wait. I think that’s — I
16 think that’s really –
17 MR. AMAN: I’ll tell you exactly why I’m
18 asking the question, which is, we think that Ms.
19 Studebaker has published false information about
20 this bankruptcy proceeding on a Web site, which has
21 created and made it more difficult and required us
22 to respond to questions.
23 MR. GOLDBERG: The nature of the — the
24 nature of what her ex-husband was communicating to
25 Ms. Cox about, if she’s saying it’s personal –

0136
1 MR. AMAN: The reason I’m asking is
2 because what I want to find out is if Ms. Cox is
3 doing this at — doing the same thing that Ms.
4 Studebaker is doing, because she has some concern
5 about Ms. Studebaker and what might happen if she
6 doesn’t go ahead and start publishing the same kind
7 of information. That’s why I’m asking the question.
8 So –
9 MR. GOLDBERG: Go — go ahead and tell him
10 — tell him exactly what –
11 MR. AMAN: Yeah.
12 MR. GOLDBERG: — what your ex — tell him
13 what happen –
14 THE WITNESS: No.
15 MR. GOLDBERG: Well, tell him what he
16 wants to know, yeah.
17 BY MR. AMAN: (Continuing)
18 Q. Just answer the question. If I’m wrong,
19 then you can tell me I’m wrong. I’m just asking.
20 A. My ex-husband was trying to get back at me
21 because he lost visitation with my boys, because he
22 broke in to my house and attacked us.
23 Q. Okay.
24 A. And he e-mailed her because he found her
25 at the top of the listing. I would — This is my

0137
1 assumption — is how he found her — and told her
2 that I am greedy and that I don’t — I had a two-
3 and-a-half-year affair and that I’m trying — I — I
4 don’t know. Something about that stuff, trying to
5 say that me and my dad are greedy and that I had an
6 affair, and that I don’t really believe in God.
7 Q. And then you ended up talking to Ms. Cox
8 explaining the situation. And she said, “I think
9 what you’re doing on the Web site’s good, and I’m
10 going to help you”?
11 A. I didn’t have a clue that my ex e-mailed
12 her that. I had these Google alerts, and all the
13 sudden this — Google alerts were popping up. And I
14 went to her Web site and she was saying, “Daddy’s
15 little girl doesn’t believe Daddy did these bad
16 deeds that Daddy did. Is she just fighting for her
17 inheritance? And we’ll dive in to her belief in God
18 later because of all this stuff.” And I was just
19 shocked, because I didn’t know why I was getting
20 attacked. And I said — I saw her “Knowledge is
21 Power,” and she fights for real estate victims. And
22 I said, “Before you make any gross assumptions from
23 wherever you’re getting, could you just read my Web
24 site and make your own decisions?” And later, she
25 said, “Okay. I’m not in to soap operas. I believe

0138
1 this is a lost love thing with your ex-husband.”
2 She said, “I believe you’re fighting for the real
3 estate victims. I want to make your site seen.”
4 Q. Okay. Where did you obtain the audio
5 recording of the court hearing that was supposed to
6 be on your Web site?
7 A. I ordered it from Court.
8 MR. AMAN: Other than — We got
9 objections, obviously, that were made in the 2004
10 Exam. There are a few questions I didn’t even ask
11 because of the objections. I’ll give you an
12 example: Who all may have been her CPA clients that
13 were individuals that were affiliated with these
14 entities? She’s raised an objection to identify
15 those people in her objections. And so, I’ve not
16 probed into it. And — But that’s a subject I do
17 want to talk to you about later.
18 MR. GOLDBERG: Okay.
19 MR. AMAN: There are objections that
20 obviously were made that we want to make sure that
21 we preserve for the questioning, if we can’t get
22 them worked out.
23 MR. GOLDBERG: The preserving is fine.
24 MR. AMAN: Yeah.
25 MR. GOLDBERG: We can work — work them

0139
1 out. I mean, you know, Ms. Studebaker is not going
2 to put her CPA license on the line by turning over
3 tax returns unless the proper procedural steps have
4 been taken to protect that. So we can work through
5 that. And then, if she’s protected, then — then we
6 probably –
7 THE COURT REPORTER: She’s what?
8 MR. GOLDBERG: Protected.
9 THE COURT REPORTER: Okay.
10 MR. GOLDBERG: — then we can probably
11 resolve some of those kinds of issues.
12 MR. AMAN: Yeah.
13 MR. GOLDBERG: I’m happy with you
14 reserving the questions that you didn’t ask pending
15 the resolution of the objections that we haven’t had
16 a chance to discuss yet.
17 MR. AMAN: Yep. Okay.
18 MR. GOLDBERG: You done?
19 MR. AMAN: Yep. Nothing further right
20 now.
21 MR. GOLDBERG: Okay.
22 FURTHER EXAMINATION
23 BY MR. GOLDBERG:
24 Q. I’m going to — I want this day to end,
25 because it’s been long. And you’ve done a nice job

0140
1 answering Mr. Aman’s questions. I just want to
2 follow up on a couple things. I’m going to refer to
3 the Declaration of Kevin Padrick in response to the
4 objection.
5 MR. AMAN: Can you give me one second –
6 MR. GOLDBERG: Sure.
7 MR. AMAN: — so I have it?
8 MR. GOLDBERG: I’ll give you back your –
9 MR. AMAN: Oh.
10 MR. GOLDBERG: I have my own copy of the -
11 – of the — I’m only going to talk about the
12 Declaration.
13 MR. AMAN: Okay.
14 MR. GOLDBERG: Just as a jumping off
15 point.
16 BY MR. GOLDBERG: (Continuing)
17 Q. So in connection with his response to your
18 objection, the trustee filed a Declaration, which he
19 signed under penalty of perjury that it’s true and
20 correct. And some of this stuff we talked about
21 today, but I just want to clarify a couple things.
22 In paragraph 4 of Mr. Padrick’s objection he says
23 that, quote, “Our investigation has revealed that
24 Ms. Studebaker-DeYoung directly benefited from her
25 father’s embezzlement through loans from Inland

0141
1 Capital Corp. made to her directly for her personal
2 use to her CPA business and to LLCs in which she
3 holds” — in which — I’m sorry — “in which she
4 held or holds a membership interest as follows.”
5 Now, I think that Mr. Aman asked, and you clearly
6 answered, questions related to any flow of moving
7 funds in or out of the LLC. So I don’t think I need
8 to address that again.
9 In paragraph 4a — Now I’m paraphrasing: The
10 trustee, in his Declaration, says that you, Ms.
11 Studebaker-DeYoung, received 50,000 — 57,000 and
12 change from Inland as a loan to fund the purchase of
13 the home in Bend. Now, we’ve talked about that
14 before. Did you personally, in your name, take out
15 a loan from Inland related to the purchase of the
16 home in Bend?
17 A. No.
18 Q. Who — who did take out that loan?
19 A. My dad, Mark Neuman.
20 Q. And when your dad told you that he was
21 going to put a down payment down on a house for you,
22 did he tell you what the source of the funds for
23 that down payment was going to be?
24 A. No.
25 Q. So you had no idea when he made that

0142
1 offer, and then you guys made the deal where you
2 would pay him back his down payment on the sale of
3 the house, you had no idea from where that money was
4 coming?
5 MR. AMAN: Objection; leading.
6 THE WITNESS: No, I had no idea where the
7 money came from. I thought it came just from my
8 dad.
9 BY MR. GOLDBERG: (Continuing)
10 Q. Okay. So in your opinion, what the
11 trustee says in his Declaration, is it accurate, or
12 inaccurate?
13 A. It is inaccurate.
14 Q. Okay. Now, in paragraph 4b, the trustee
15 talks about you receiving $100,000 from Inland as a
16 bridge loan to purchase residential property in
17 Bend. Now, I think — I think, based on today’s
18 testimony, what that really is referring to is
19 Sunriver?
20 A. Correct.
21 Q. Okay. And Mr. Aman asked you some
22 questions about that, but he didn’t fully flesh out
23 the events. So I just wanted to do that. You –
24 you testified to having received the hundred
25 thousand dollar loan from Inland, right?

0143
1 A. Yes.
2 Q. What — Did that loan get paid back?
3 A. Yes.
4 Q. How did it get paid back?
5 A. By the lot loan I got from Umpqua Bank,
6 and it was 45 days after I borrowed the loan from
7 Inland. It was in a refinance.
8 Q. So the trustee states — Well, strike
9 that.
10 So your testimony is that that $100,000
11 was paid off in full?
12 A. Yes.
13 Q. Okay. And paragraph 4c refers to — of
14 the Declaration refers to you receiving $9,500 from
15 Inland in the form of three separate loans to help
16 fund the startup of your accounting practice. We
17 did talk about that earlier. What — whatever
18 happened with those loans?
19 A. Actually, Tonkon Torp — David Aman had
20 the information on the loan prior to Kevin making
21 that Declaration. It was one line of credit –
22 Q. Okay.
23 A. — not three separate loans. And it was a
24 line — it had a — we had a line of credit up to
25 15,000. It was a year-long line of credit. We took

0144
1 three draws totaling $9,500. And we paid interest
2 and a loan fee of $75, and paid it all off in six
3 months. And it was not to me, personally. It was
4 to my accounting firm; at the time, McGregor and
5 Studebaker.
6 Q. And your testimony — I’m sorry — I’m
7 sorry. Your testimony is that it was paid off in
8 full?
9 A. Yes.
10 Q. Okay. When you did accounting work for
11 the various LLCs, as you testified to earlier, and
12 you got paid for it, who was paying you? The LLC
13 was paying you?
14 A. Yes.
15 Q. Okay. Did you get paid by check?
16 A. Yes.
17 Q. Okay. And so the LLC in question, for
18 example, Klondike, you would invoice it for
19 accounting services, and the LLC itself would pay
20 you from a check?
21 A. From their accounts.
22 Q. Okay.
23 A. Yes.
24 Q. And is that — is that generally the way
25 that you were paid for the accounting work that you

0145
1 did for the various entities that Mr. Aman has been
2 asking you about today?
3 A. Yes. I would bill the entity, and the
4 entity would send a check.
5 Q. Did you ever receive — You testified to
6 having done tax returns for some Summit-related
7 affiliates in other states. Those notwithstanding,
8 did you ever receive checks or — or money in any
9 other form directly from Summit for accounting
10 services that you performed?
11 A. No.
12 Q. Did you ever receive any money for any
13 services that you performed for various people and
14 entities from Inland?
15 A. No.
16 Q. What is your understanding of the status
17 of Inland in terms of who owns it now?
18 A. My understanding is that the liquidating
19 trustee owns it.
20 Q. Okay.
21 A. Or the — And I think it was handed over
22 to Kevin Padrick.
23 Q. Okay. You testified earlier regarding
24 money that was received by Century as a result of
25 the sale; the tenancy in common interest to Mr.

0146
1 Hull, correct?
2 A. Correct.
3 Q. And you further testified that certain
4 members of that LLC took dis — their distributions
5 from that and paid it to Inland?
6 A. Correct.
7 Q. But at the — at the time that they paid
8 it to Inland, did you know what they were doing with
9 the money?
10 A. No.
11 Q. So you didn’t know that it was going back
12 to Inland?
13 A. Well, I — when I came back from my
14 vacation and got — finally got copies of the
15 checks, the ones written for Mark and for Brian were
16 written to Inland. That’s how I found out.
17 Q. Okay. So you — what you’re saying is you
18 found out after it had occurred?
19 A. Correct.
20 Q. Okay. Did you know that before it had
21 occurred?
22 A. No.
23 Q. Okay. Do you believe that Century — the
24 Century LLC has a claim against Inland for the money
25 that it got as a result of — of those distributions

0147
1 and those transactions?
2 A. Yes.
3 Q. Okay. Mr. Aman was asking you a series of
4 questions about your objection that you filed. I
5 just have a couple questions. You filed — a part
6 of your objection, you can — you can look — we can
7 — I can provide you with your objection and the
8 exhibits if you need it. Part of your objection
9 dealt with your — your claim that there was — that
10 part of the fees were excessive because of duplicate
11 efforts.
12 A. Yes.
13 Q. Mr. Aman asked you if you were a lawyer or
14 if you had a legal background. Did you make those
15 objections because you thought that you had some
16 kind of legal background or legal training?
17 A. No.
18 Q. How was it that you came to decide that
19 you thought those fees were excessive? What was
20 sort of the — the method that you used?
21 A. Well, I started with Section 330 of the
22 Code in duplication of services. And then I
23 reviewed the time and billings from each of the
24 firms and noticed that many times three people, like
25 David Aman, Leon Simpson and Haley Bjerk, or

0148
1 something, would be on the same things as Ewan Rose
2 and, you know, a couple people over at Obsidian.
3 And I’m looking at all their billing rates, and I’m
4 — So, to me, going through all the billing rates
5 and all the people that have to be involved in one
6 meeting, it seems like a duplication of services,
7 when communication could be limited to an e-mail or
8 a quick note or something like that.
9 Q. Okay. Another aspect of your objection to
10 the fees has to do with the amount of fees expended
11 by the estate on completing exchanges; is that
12 correct?
13 A. Yes.
14 Q. Now, did you have a — This is a similar
15 question to the one I just asked. In preparing that
16 part of your objection, did you have a methodology
17 or a process that you used to — Your objection
18 states that it’s your belief that the estate could
19 have saved –
20 A. $125,000.
21 Q. Okay — if it had done things a certain
22 way. And what I’d like you to explain, for the
23 record, is how you went about coming up with that.
24 A. I went through all the time and billings
25 to pick out the time first spent on exchanges and

0149
1 the names of the people who were on these exchanges
2 that they were dealing with and figured out — I
3 couldn’t really tell how many were reverse exchanges
4 and how many were straightforward exchanges. But I
5 could tell on it how many were completed, pretty
6 much, from the time and billing. And I took the
7 total fees and the total exchanges and I said,
8 “Well, this — these fees here look like a lot
9 compared to the number of exchanges.” I asked my
10 dad what does a 1031 company charge for completing -
11 – for a whole exchange, and then, what would they
12 charge for doing half an exchange. And I
13 multiplied, since half the exchange had already been
14 completed by Summit 1031, and the attorneys were
15 just supposed to finish the other half. I took half
16 the exchange fee times the number of — of exchanges
17 that they completed to come up with the number that
18 another professional would have charged in the same
19 — you know, as a qualified intermediary.
20 Q. All right.
21 MR. GOLDBERG: I think the following
22 question will be my last, unless you have follow up.
23 MR. AMAN: I have a couple.
24 MR. GOLDBERG: Okay.
25 MR. AMAN: Not much.

0150
1 BY MR. GOLDBERG: (Continuing)
2 Q. We were — Mr. Aman was asking you
3 questions and you were answering them not too long
4 ago about offers that you had made to the trustee to
5 purchase the estate’s interest in the Klondike, LLC?
6 A. Yes.
7 Q. And there was some discussion of the fact
8 that valuations of the property owned by the LLC had
9 ranged from just over a million dollars down to
10 under — you know, in the sort of 670-something
11 range — 670-something-thousand-dollar range?
12 A. Yes.
13 Q. Now, I just want to be clear about this.
14 The — the lowest estimate, the 677, that was
15 provided by whom?
16 A. By Dan Steel Hammer, who is at Windermere
17 Commercial Realty.
18 Q. Okay. So — so he’s a licensed Realtor in
19 Bend?
20 A. Yes.
21 Q. Okay. And he did a valuation of the
22 building?
23 A. Correct.
24 Q. Okay. And the — We had looked at an
25 analysis that you had done in January that was based

0151
1 on a certain value that was much higher than what
2 the Realtor said the property was worth. And as a
3 result of your analysis, based on the higher value,
4 there was a number that would be the value of the
5 estate’s?
6 A. Correct.
7 Q. If you were to perform that same analysis
8 using the number, the value of 677 provided by the
9 licensed Realtor in Bend, what would be the value of
10 the estate’s interest come out to be?
11 A. It would come out to be about 60 percent
12 of the 671.
13 Q. The value of the estate’s interest?
14 A. Oh, what’s going to — actually cash going
15 to the estate — estate, or the value?
16 Q. Well, the — if you — if you did that
17 same analysis or — Let — let me — let me ask it
18 this way: How did you arise — arrive at the 28 –
19 the roughly $28,000 offer that you made to Mr.
20 Padrick to buy out the estate’s interest?
21 A. I took the 671 fair market value from Dan
22 Steel Hammer times the interest of Mark, Tim, and
23 Brian. Then I took the loan balance that we owed at
24 the time, times Mark, Brian, and Tim’s interest.
25 And the net of that is $28,000. So, let’s see.

0152
1 Q. That’s a — that’s a
2 A. Is that okay?
3 Q. — sufficient answer.
4 MR. GOLDGERG: I’m done.
5 THE VIDEOGRAPHER: Excuse me. We have
6 five minutes.
7 MR. AMAN: We’ll probably be done by then.
8 It’ll be close.
9 FURTHER EXAMINATION
10 BY MR. AMAN:
11 Q. Getting back to the — the duplication of
12 efforts in connection with exchanges and the fact
13 that you concluded that it could be done a lot
14 cheaper — Let’s just put it that way. I’m just
15 going to read one sentence in your — your
16 objection. “The three layers of services include
17 the work done by Sussman Shank totaling 63,226, work
18 done by the trustee totaling 78,870, and the work
19 done by Tonkon Torp, 9,829 thousand. Why didn’t you
20 object to what Sussman Shank’s fee was?
21 A. Because I didn’t have time.
22 Q. But you chose to object to Tonkon and the
23 trustees, correct?
24 A. Because I found more than just that for
25 those fees.

0153
1 Q. But you haven’t been communicating with –
2 A. Oh, you know what? Actually — I’m sorry.
3 When I did that objection, I thought that Sussman
4 Shank was supposed to be the one completing the
5 exchange. That’s why they were kept on board after
6 the trustee changed. So I thought that their fees
7 were warranted, since they were the ones supposed to
8 be doing the job. That’s why I didn’t object to
9 them.
10 Q. Okay, even though they charged three times
11 what you suggest is an appropriate amount?
12 A. I don’t know. Can I see what you’re
13 talking about?
14 Q. Well, I’ll read you the numbers. I just -
15 – I mean — What you said is that the cost of the
16 estate would approximate 26,250 based on the
17 customary compensation charged. And Sussman Shank
18 charged 63,226. Those are — those are the numbers.
19 So I can show you this.
20 A. What was the first number?
21 Q. 26,250.
22 A. Okay.
23 Q. And then Sussman charged 63,226, okay?
24 A. Right.
25 Q. Now, let me ask you: Have you had

0154
1 communications with Sussman Shank in connection with
2 the LLC interest that you hold?
3 A. No.
4 Q. You had those communications with Tonkon
5 Torp and the trustee, correct?
6 A. Yes.
7 MR. AMAN: Let me just talk to Mr. Rose
8 real quick.
9 BY MR. AMAN: (Continuing)
10 Q. The last question is: Do you know how
11 much money was saved for the estate by completing
12 these reverse exchanges?
13 A. Do I –
14 Q. What the mitigation was to the estate?
15 A. Probably none, but I don’t know for sure.
16 Q. Okay.
17 MR. AMAN: Nothing further. Thank you.
18 THE VIDEOGRAPHER: Here marks the end of
19 tape number two of the deposition of Stephanie
20 Studebaker-DeYoung. The time is 2:35 p.m. We are
21 off the record.
22 (Whereupon, the videotaped deposition of
23 STEPHANIE STUDEBAKER-DeYOUNG concluded at 2:35 P.M.)
24
25

0155
1 VIDEOTAPE LOG
2
3 Deposition of: Stephanie Studebaker-De Young
4 Date: 8/28/2009
5 Regarding: Bankruptcy in Re: Summit Accomodators, Inc.
6
7 Videographer: Bill Johnson
8 Began: 9:34 AM Ended: 2:35 PM
9
10 TIME TAPE KEY WORD EXAMINATION OBJECTION
11 9:34: 1 on record AMAN
12 9:36: 1 objection GOLDBERG
13 9:59: 1 clarification GOLDBERG
14 10:24: 1 speculate GOLDBERG
15 10:34: 1 off record AMAN
16 10:49: 1 on record AMAN
17 10:50: 1 objection GOLDBERG
18 10:56: 1 clarification GOLDBERG
19 11:19: 1 off record AMAN
20 11:28: 2 on record AMAN
21 11:57: 2 off record AMAN
22 1:01: 2 on record AMAN
23 1:08: 2 clarification GOLDBERG
24 1:22: 2 Exhibit 3 AMAN
25 1:24: 2 page 179 GOLDBERG

0156
1 TIME TAPE KEY WORD EXAMINATION OBJECTION
2 1:46: 2 objection GOLDBERG
3 1:49: 2 off record AMAN
4 1:57: 2 on record AMAN
5 2:01: 2 objection GOLDBERG
6 2:08: 2 objection GOLDBERG
7 2:12: 2 objection GOLDBERG
8 2:12: 2 objection GOLDBERG
9 2:13: 2 change Examin GOLDBERG
10 2:16: 2 objection AMAN
11 2:31: 2 Change Examin AMAN
12 2:35: 2 off record AMAN
13
14
15
16
17
18
19
20
21
22
23
24
25

0157
1 CERTIFICATE OF VIDEOGRAPHER
2
3 I the undersigned, Bill Johnson, videographer with the firm
4 of The NAEGELI REPORTING CORPORATION, do hereby certify that
5 I have accurately made the videotaped recording of the
6 deposition of Stephanie Studebaker-De Young, in the above
7 captioned matter on the 25th day of August, 2009, taken at
8 the location of 1201 NW Wall St., Bend, OR, consisting of 2
9 tape(s).
10
11 No alterations, additions or deletions were made thereto.
12
13 I further certify that I am not related to any of the
14 parties in the action and have no financial interest in the
15 outcome of this matter.
16
17 8/25/2009 Bill Johnson
18 Date Videographer
19
20
21
22
23
24
25

0158
1 CERTIFICATE
2
3 I, Marta J. Charles, do hereby certify that pursuant
4 to the Rules of Civil Procedure, the witness named
5 herein appeared before me at the time and place set
6 forth in the caption herein; that at the said time
7 and place, I reported in stenotype all testimony
8 adduced and other oral proceedings had in the
9 foregoing matter; and that the foregoing transcript
10 pages constitute a full, true and correct record of
11 such testimony adduced and oral proceeding had and
12 of the whole thereof.
13
14 IN WITNESS HEREOF, I have hereunto set my hand this
15 8th day of September, 2009.
16
17
18
19
20 /Signed September 24, 2009
21 Marta J. charles Commission Expiration
22
23
24
25

0159
1 CORRECTION SHEET
2
3 Deposition of: Stephanie Studebaker-DeYoung
4 Date: 08/25/2009
5 Regarding: Bankruptcy in Re: Summit Accomodators, Inc.
6 __________________________________________________
7 Please make all corrections, changes or clarifications
8 to your testimony on this sheet, showing page and line
9 number. If there are no changes, write “none” across
10 the page. Sign this sheet on the line provided.
11 Page Line Reason for Change
12 _____ _____ ________________________________________
13 _____ _____ ________________________________________
14 _____ _____ ________________________________________
15 _____ _____ ________________________________________
16 _____ _____ ________________________________________
17 _____ _____ ________________________________________
18 _____ _____ ________________________________________
19 _____ _____ ________________________________________
20 _____ _____ ________________________________________
21 _____ _____ ________________________________________
22 _____ _____ ________________________________________
23 _____ _____ ________________________________________
24 Signature___________________________
25 Stephanie Studebaker-DeYoung

0160
1 DECLARATION
2
3 Deposition of: Stephanie Studebaker-DeYoung
4 Date: 08/25/2009
5 Regarding: Bankruptcy in Re: Summit Accomodators, Inc.
6 __________________________________________________
7
8
9 I declare under penalty of perjury the following to be
10 true:
11
12 I have read my deposition and the same is true and
13 accurate save and except for any corrections as made
14 by me on the Correction Page herein.
15
16 Signed at ____________________________, _________
17 on the ______________ day of ________________, 2009.
18
19
20
21
22 ________________________
23 Stephanie Studebaker-DeYoung
24
25