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                                                                   191

 

            1

 

            2       UNITED STATES DISTRICT COURT

                    SOUTHERN DISTRICT OF NEW YORK

            3

                    UNITED STATES OF AMERICA,

            4

                                Plaintiff,

 

                        -against-             90 Civ 5722

            6

                    DISTRICT COUNCIL OF NEW YORK CITY and

            7       VICINITY OF THE UNITED BROTHERHOOD OF

                    CARPENTERS AND JOINERS OF AMERICA,

            8       et al.,

 

            9                                Defendants.

 

           10

 

           11

 

           12                CONTINUED DEPOSITION OF ANTHONY

 

           13       ARGUELLES,  the witness herein, taken by

 

           14       Plaintiff,  at the offices of Doar, Rieck & Mack,Esqs.,

 

           15      Broadway, New York, New York, on

 

           16       Friday,  January 7, 2005, at 5:00 p.m., before

 

           17       ROBERT BLOOM,  a Shorthand Reporter and notary

 

           18       public,  within and for the State of New York.

 

           19

 

           20

 

           21

                           TANKOOS REPORTING COMPANY,  INC.

           22       305 Madison Avenue          142 Willis Avenue

                    Suite  449                  P.O. Box 347

           23       New York,NY 10165           Mineola, NY 11501

           24          (212) 349-9692                (516) 741-5235

 

           25


 

 

                                                                 192

 

           1

           2       APPEARANCE S:

           3                DOAR, RIECK & MACK

                                   217 Broadway - 7th floor

           4                       New York, New York 10007-2911

                            BY:    WALTER MACK, ESQ.,

           5                       Independent Investigator

           6

           7                EDWARD SCARVALONE, ESQ.

                            Assistant United States Attorney

           8                United States Department of Justice

                                   86 Chambers Street

           9                       New York, New York 10007

          10

          11                O'DWYER & BERNSTEIN, ESQS.

                            Attorneys for District Council

          12                       52 Duane Street

                                   New York, New York 10007

          13                BY:    GARY ROTHMAN, ESQ.

          14

          15                DINO J. LOMBARDI, ESQ.

                            Attorneys for Witness

          16                       52 Duane Street - 7th floor

                                   New York, New York 10007

          17

                      ALSO PRESENT:

          18

                            DON SOBOCIENSKI, Investigator

          19

          20

          21

          22

          23

          24

          25


 

 

                                                         193

 

          1

 

          2                    INDEX

          3      WITNESS          EXAMINATION BY       PAGE

 

          4      Anthony ArguellesMr. Mack    194,260, 289,

                                              347,410, 422

          5

          6                       Mr. Scarvalone  259, 417

                                  Mr. Rothman     288, 346

          7

          8                       Mr. Sobocienski      409

          9

 

         10

 

         11

         12

         13

 

         14

 

         15

 

         16

         17

 

         18

         19

 

         20

 

         21

 

         22

         23

 

         24

         25


 

 

                                                                      194

            1

            2                 MR. MACK:    Let's go on the record.

            3        EXAMINATION BY

            4        MR. MACK:

            5            Q.   Mr. Arguelles,  let me apologize to you

            6        for starting here somewhat late.

            7                 As I have mentioned to you,   I just

            8        received information about a dear friend's

            9        illness, and that caused some of the delay.

           10                 I apologize for starting late on a

           11        Friday afternoon,  I will try to be as efficient

           12        as I can be in our proceeding this evening.

           13                 I want to mention a couple of

           14        additional things.

           15                 Obviously despite Mr.   Lombardi's desire

           16        for me to go through the entire warning system

           17        again because he enjoys it so much,   I am going

           18        to presume that you recall the extensive time

           19        period I spent when you were here on December

           20        15th about what your rights are and what the

           21        procedures are and how important it is to be

           22        accurate and precise and truthful about the

           23        subject matter,  because it will  save us

           24        considerable time.

           25                  Unless there are  some specific


 

 

                                                                   195

            1                           Arguelles

            2       questions that you have some uncertainty with,

            3       everything I said about your rights as a witness

            4       and your ability to consult and take a break and

            5       ask me to clarify matters and everything that I

            6       said before is still obviously in effect.

            7                This is simply a continuation of the

            8       last proceeding.   And I believe it was on

            9       December 15th, in which you were here before,

           10       and where we ended around 10 p.m.  with your

           11       request that you be given sometime to consult

           12       with counsel on a subject which we will quickly

           13       return to.

           14                And notwithstanding some concern on

           15       behalf of the attorneys that were present,  that

           16       request of yours was granted,  and we are

           17       continuing today pretty much where we left off

           18       the last time.

           19                Let me at least ask at this moment:

           20       Are there any questions that you would like to

           21       ask or your counsel would like to ask that are

           22       unclear in your mind about your rights or what

           23       this procedure is or who I am or what we're

           24       doing?

           25            A.   No.


 

 

                                                                          196

             1                              Arguelles

             2            Q.    Let me add a couple of other subjects

             3        which are at least in fairness I'm now making a

             4        practice of disclosing when I'm questioning

             5        people under oath,   or questioning people,    as

             6        part of my function as the independent

             7        investigator.

             8                  And that is that the District Council

             9        has determined that they would like to end my

            10        service at some time in the future.       And the

            11        reasons for that are theirs and that is

            12        something I am not going to be directly involved

            13        in.

            14                  But it is at least possible,    maybe even

            15        probable,  that my term as independent

            16        investigator will end in the very near future.

            17        And that is something which I believe is subject

            18        to the judge's determination,     and probably will

            19        result in a judge's resolution of that topic.

            20                  But it is at least possible maybe even

            21        likely that my term and my authority will end in

            22        the very near future.

            23                  And therefore you at least should be

            24        advised and your counsel can consider it that

            25        since that may be true,    you may at least


 

 

            1                             Arguelles                  197

            2        consider the possibility of declining to

            3        continue or I just can't anticipate how much

            4        longer, and what reports I will be able to

            5       write,  and there is at least some uncertainty

            6        there notwithstanding the fact that I will ask

            7        Judge Haight for permission to conclude all of

            8         the matters that I had begun.

            9                 I never predict what Judge Haight will

           10        do.

           11                 In fairness to you and to your counsel,

           12        I think I have to at least disclose to you that

           13        my ability to continue in the role that I am

           14        taking tonight is definitely open to question.

           15                 So if there is anything either of your

           16        want to ask me about that,  in fairness to you I

           17        should tell that you so you can make whatever

           18        decisions you may feel you wish to.

           19                 I would say the last time I disclosed

           20        it, counsel proceeded.    But I am not going to

           21        anticipate anything.   And I wouldn't presume by

           22        any means that Judge Haight is going to say

           23        well, it stopped and these investigations don't

           24        continue, and because Anthony walked out on

           25        January 7th, he is home free.


 

 

                                                                     198

            1                            Arguelles

            2                 I certainly wouldn't predict the judge

            3       to say that.    That is your call to make.     I am

            4       not going to encourage you to walk out,    but that

            5       is a decision I think I have the obligation to

            6       disclose,  the fact that my role as independent

            7       investigator,  its longevity is certainly a

            8       matter in question at the moment.

            9                 MR. LOMBARDI:   In response to that,  we

           10       did discuss this last time,   and Mr. Arguelles

           11       was present for at least part of that

           12       discussion,  and I think you and I talked about

           13       it a little bit  ourselves,  Walter.

           14                 And I think it's fair to say that your

           15       position would be if for some reason Mr.

           16       Arguelles chose either himself or on the advice

           17       of counsel to not continue the deposition,    I

           18       assume your position would be in that your

           19       letter to him was issued in November 2004,    and

           20       that the initial stage of the deposition

           21       commenced before such time as your tenure was

           22       up,  that you would take the position before the

           23       court that any matters that were already part of

           24       your jurisdiction,   so to speak prior to your

           25       term coming to an end,   that you would be


 

 

                                                                          199

             1                              Arguelles

             2        permitted,  and the court would be well advised

             3        to allow you to complete.

             4                  MR. MACK:    You should have no doubt

             5        about  it.

             6                  You should also consider should you

             7        walk out tonight the likelihood is that I would

             8        be speaking to the judge on notice to you on

             9        Monday morning asking that your client be

            10        ordered to return and appear.

            11                  MR.  LOMBARDI:    So I wanted the record

            12        to be clear.     Because quite frankly what you

            13        said before I began speaking almost seemed as if

            14        Mr. Arguelles was being given the option to

            15        discontinue or not.

            16                  If that was just your being very modest

            17        and moderate in portraying the situation to him,

            18        then that's   great.

            19                  But as  I have explained to my client,

            20        we talked about last time,    certainly you would

            21        take the position that you are fully entitled to

            22        continue with his deposition,     and I,  quite

            23        frankly,  have little or no doubt that Judge

            24        Haight would concur with that viewpoint.

            25                  So here on the record in front of


 

 

                                                                  200

           1                           Arguelles

           2       everybody, I don't think we -- if you want to

           3       talk to me about this we can go off and talk for

           4       a minute.

           5                THE WITNESS:    No, let's proceed.

           6                MR. LOMBARDI:   It's my belief that

           7       Judge Haight would say that Mr. Mack is

           8       empowered to continue and complete the

           9       deposition,whatever the actuality of his tenure

          10       is as investigator.

          11                MR. MACK:   I would hate for you to see

          12       me in several months and say if you had told me

          13       that we never would have proceeded on the night

          14       of the 7th.

          15                So I err on the side of disclosure and

          16       I couldn't presume you were aware of my

          17       termination.

          18                MR. LOMBARDI:   You have not been

          19       terminated yet.

          20                MR. MACK:   I haven't.    I know that

          21       might change your opinion.

          22                MR. ROTHMAN:    Would you like me to?

          23                MR. MACK:   Absolutely not.

          24                MR. ROTHMAN:    That might change our

          25       opinion.


 

 

                                                                          201

             1                              Arguelles

             2                  MR.MACK:      Forgive our humor.

             3             Q.   Carpenters have their own humor and

             4        lawyers do as well.

             5                  I want to cover a couple of other

             6        areas.

             7                  One of which is,   I know you brought me

             8        records tonight.     I have the benefit of reading

             9        the transcript of your prior appearance,      that is

            10        an advantage that I have as an agent of the

            11        court.   I do not disclose transcripts until I am

            12        prepared to write my final report on the topic

            13        as a practice.

            14                  Although I do consider,    from time to

            15        time should there be an absolute need,      or a need

            16        expressed to me,   I feel an obligation to at

            17        least evaluate whether the transcript or

            18        portions of it should be released prior to my

            19        final report.

            20                  But having read the transcript,     one of

            21        the things that is clear is a number of your

            22        answers to questions you answered that      "I may be

            23        able to answer this question better with my

            24        records."

            25                  And that came up a couple of times,      I


 

 

                                                                  202

           1                            Arguelles

           2        know you brought records tonight.   And I want

           3        to make certain that if any of the answers or

           4        topics that we covered before -- we were in the

           5        period of around April, May and June of 2000.

           6                 In order to cut to the chase here, if

           7        there were answers that you gave about the prior

           8        jobs and questions I asked of you as to prior

           9        jobs or where you were working or whether you

           10       were working when you were on the license, I

           11       would at least reiterate my request that should

           12       your answer be different than it was the last

           13       time because your recollection has been

           14       refreshed by records that you have now reviewed

           15       -- I don't believe you have because I don't

           16       think you brought anything in that time period.

           17           A.   I don't do that.

           18           Q.   But I don't want to make the

           19       presumption.

           20                And if there were a change in the time

           21       period that we have already spent some time

           22       with, I am inviting that correction or

           23       modification now to avoid forgetting about it

           24       later in the day.

           25                So I don't know what your answer to


 

 

                                                                  203

            1                           Arguelles

            2       that question is.

            3                Is any record you reviewed available to

            4       you, recognizing that you have said a couple of

            5       times that your records might assist you, have

            6       those records in any way assisted you to

            7       remember any of the jobs we talked about in the

            8       period prior to April, May, June, 2000?

            9                MR. LOMBARDI:   Have you looked at the

           10       records?

           11           A.   I haven't looked at anything previous

           12       to where we left off.

           13           Q.   Do you have any records for the period

           14       prior to April, May and June 2000 somewhere that

           15       we didn't bring today or that could be available

           16       to you?

           17           A.   Honestly, I really don't -- I was lucky

           18       to even find the May, June and April ones.   I

           19       didn't think I had those.

           20           Q.   Here is where it is on the records

           21       there, is where I would like to leave it today.

           22                The answers that you gave me with

           23       respect to the jobs up to April 2000 will stay

           24       as recorded by the reporter.

           25                And I will presume that no records


 

 

                                                                 204

           1                           Arguelles

           2       exist that you are able to find prior to that,

           3       let's say April 2000, unless should they exist,

           4       then I would say that that obligation is of

           5       yours and Mr. Lombardi's to produce those

           6       records and change or alter or modify or add or

           7       supplement your answer.

           8                That burden will be upon you.

           9       Otherwise, I will keep the record as it sits

           10      today unless you want to come forward and say

           11      I have other records, something else occurred to

           12      me, I had some other way to refresh my

           13      recollection.

           14               MR. MACK:   Is that fair?

           15               MR. LOMBARDI:   Yes.

           16               MR. MACK:   Now, let me just ask:   Is

           17      there anything else you would like to see?

           18               MR. LOMBARDI:   The exhibits last time,

           19      Exhibit 1 obviously was the letter.

           20               MR. MACK:   Right.

           21               MR. LOMBARDI:   Exhibit 2 is the skill

           22      history or work referral history which begins

           23      with the list of skills.

           24               MR. MACK:   Are you asking me to

           25       confirm this?


 

 

                                                                      205

            1                             Arguelles

            2                 MR. LOMBARDI:    What I have,  I'm

            3        wondering why I have it,  I have  1, 2 and 3, 3

            4        being the benefits history.

            5                 And I have Exhibit 7 which are the

            6        actual compilation of the manning requests and

            7        dispatches.

            8                 What were Exhibits 4,   5 and 6?

            9                 MR. MACK:    Those are exhibits that

           10        exist in my brain at the moment.

           11                 MR. LOMBARDI:    In your brain.

           12                 MR. MACK:    But may not be used.

           13                 MR. LOMBARDI:    And were not used the

           14        last time.

           15                 MR. MACK:    To my belief have not been

           16        used so far.

           17                 MR. LOMBARDI:    I want to make sure I

           18        didn't somehow bring a partial file.

           19                 MR. MACK:    No.

           20                 There are exhibits that exist somewhere

           21        in this office that have those numbers,   but they

           22        are not part of this proceeding yet.

           23                 MR. LOMBARDI:     I just want to make

           24        sure I didn't bring an incomplete set.

           25                 MR. MACK:    Should they become part you


 

 

                                                                          206

             1                              Arguelles

             2        will have a copy,   fair enough?

             3                  MR. LOMBARDI:     Fair enough.

             4                  MR. MACK:    Anything else?

             5                  MR. LOMBARDI:     No.

             6                  MR. MACK:    Mr.  Rothman,  anything you

             7        would like to say or express before we resume

             8        where we were?     I know you did make a fairly

             9        direct comment at the very end of our proceeding

            10        last time,  and I have that in mind,    feel free,

            11        of course to say anything you wish.

            12                  MR. ROTHMAN:     The District Council

            13        remains committed to the efficacy of the II's

            14        investigations from now until whenever its term

            15        may end.

            16                  MR. MACK:    I appreciate that.      The

            17        fact that it may end tomorrow shouldn't bother

            18        anyone.

            19                  That is a poor attempt at humor,     I

            20        don't mean to take likely your statement.

            21                  Anything else,   Gary,  you would like to

            22        say?

            23                  MR. ROTHMAN:     No.

            24                  MR. MACK:    Mr.  Scarvalone?

            25                  MR.  SCARVALONE:     I am Edward


 

 

                                                                         207

             1                              Arguelles

             2        Scarvalone from the U.S.    Attorney's Office.

             3        Last time Lisa Zornberg was here,     she couldn't

             4        make it tonight,   I am here in her place.

             5            Q.    The very same things    I said about Ms.

             6        Zornberg in terms of being my guest,     and about

             7        the government,   is coming from the office,    part

             8        of the civil division,    not a prosecutor,   all of

             9        those things are exactly the same,     and Mr.

            10        Scarvalone is just   substituting for Ms.    Zornberg

            11        tonight because of her unavailability.

            12                  Let's proceed.

            13                  I think just out of an excess of

            14        caution I will ask the reporter to swear you

            15        again,  less there be any concern.

            16                  Normally it's   simply a continuation.

            17        I would argue this is a continuation,     but to

            18        remove any,   shall we say ambiguity on your part,

            19        it's not because I don't except that you would

            20        be absolutely truthful and accept my

            21        representation,   I would like to,   in excess of

            22        caution ask Mr.   Bloom to swear the witness.

            23                  Whereupon,

            24                          ANTHONY ARGUELLES,

            25        after having been previously sworn,      was examined


 

 

                                                                          208

             1                              Arguelles

             2        and testified further as follows

             3        BY MR.  MACK:

             4            Q.    Mr. Arguelles,   when we last retired

             5        prior to the holiday season,    we seem to be

             6        focused on a period in April,    May and June of

             7        2000,  concerning benefits paid for you at L&D

             8        Installers.

             9                  And the way the record sits at the

            10        moment is that you described the job,      I think

            11        you describe it in the vicinity of Astor Place

            12        or Astor Plaza.

            13            A.    Astor Place,   down in that  area.    The

            14        exact address   I don't recall.

            15            Q.    Let me summarize here and also give you

            16        some cautions so that we can pretty much pick up

            17        where we were then.

            18                  What I was trying to ask you about was

            19        where was the job,   who was there,   who was the

            20        shop steward,   was there job reported,    to whom

            21        was it reported,   and that was sort of the

            22        threshold of where we were.

            23                  At that time you were the beneficiary

            24        of advice and discussion with your counsel which

            25        is absolutely appropriate and exactly one of the


 

 

                                                                   209

            1                           Arguelles

            2       reasons why he is here.

            3                I don't mean to in any way indicate

            4       there is anything wrong with that.    That is why

            5       Mr. Lombardi is here, you should feel entitled

            6       to speak to him at any time tonight,  of course,

            7       in the same way.

            8                One other thing that is very important

            9       tonight is everybody involved,  when we finally

           10       adjourned, I think it was close to  10 o'clock

           11       that Friday night, was that we wanted to make

           12       sure that we understood the mechanism whereby

           13       this topic was assessed by you subsequent to the

           14       -- afterwards, during the holiday period,  and to

           15       make sure there was no effort by anyone,  let me

           16       put it that way, to influence your description

           17       of the truth.

           18                In other words, this is probably the

           19       most important thing I say on any one of these

           20       occasions, the standard here that is applied is

           21       does the witness honor their oath.    Are they

           22       telling the truth, the whole truth and nothing

           23       but the truth.

           24                And what there is,  obviously an ability

           25       should there be something that arguably could