1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

STEVE COOLEY District Attorney MAX HUNTSMAN Deputy District Attorney State Bar No. 156780 PUBLIC INTEGRITY 320 W TEMPLE STREET RM 766 LOS ANGELES, CA 90012 (213) 974-6501 Attorney for Plaintiff SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES PEOPLE OF THE STATE OF CALIFORNIA, Plaintiff, v. Case No.: BA396065 MOTION TO CONDUCT A HEARING TO DETERMINE THE LEGITIMACY OF PROFFERED BAIL PURSUANT TO PENAL CODE 1275.1

01 02 03 04 05 06

Todd DeStefano, Pasquale Rotella Reza Gerami Patrick Lynch Antonio Estrada Leopold Caudillo

Defendants. TO THE HONORABLE JUDGE IN DEPARTMENT 100; THE DEFENDANT, AND HIS ATTORNEY OF RECORD:

21

PLEASE TAKE NOTICE that the People request the Court to conduct a hearing to
22

determine legitimacy of proffered bail, pursuant to Penal Code Section

23

1275.1.
24 25 26 27 28

THE PEOPLE ALSO REQUEST THAT the court place a hold on the release of all defendants listed above from custody until such a hearing may be conducted.

This motion will be based upon the attached points and authorities, declarations filed in support
1 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

of this motion and pleadings, records, files, documents, and evidence, oral or written, to be
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

presented at the hearing on this motion.

Dated: March 20, 2012

Respectfully submitted, STEVE COOLEY DISTRICT ATTORNEY By

Max Huntsman Deputy District Attorney Attorney for Plaintiff

2 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

POINTS AND AUTHORITIES

Penal Code Section 1275 states: "[In fixing the amount of bail,] the judge or magistrate shall take into consideration the protection of the public, the seriousness of the offense charged, the previous criminal record of the defendant, and the probability of his appearing at the trial or hearing of the case. Penal Code Section 1275.1 states: No bail bond shall be accepted unless the judge or magistrate be convinced that no portion of the consideration, pledge, security, deposit, or indemnification paid, given, made, or promised for its execution was feloniously obtained by the defendant." (Emphasis added.) Penal Code Section 1275.1(b) authorizes the judge to place a hold on the release of the defendant from custody when a peace officer or prosecutor declares under penalty of perjury that he

16

has probable cause to believe that the consideration for the bail was feloniously obtained.
17

Penal Code Section 1275.1(c) indicates that, at the hearing, the defendants bear the burden of
18 19 20 21 22 23 24 25 26 27 28

proving by a preponderance of the evidence that no part of the consideration, pledge, security, deposit or indemnification for the bail was feloniously obtained.

The mere proffering of a corporate surety bond in the amount set at bail does not deprive the Court of the right to inquire into areas which might bear on whether the defendant will make future court appearances if released on bond. United States v. Ellis De Marchena , 330 F. Supp 1223 (1971) (Affirmed, Dkt. No. 71-2343. September 3, 1971, 9th Cir.). The Court has the right and duty to satisfy itself that there is more than just a financial assurance that a bailed defendant will appear in court when required . . . . The source of the security providing the collateral for the bond can provide valuable information
3 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

regarding the motivation for a defendant to appear. If the bond were secured by the
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

property of defendant's relatives, or close friends, the court could, logically, conclude that the possibility of financial harm to those individuals might motivate a defendant to appear. On the other hand, if the security comes from an illegitimate source, and is merely a 'business' expense for a dealer in contraband, there is a paucity of moral force compelling a defendant to reappear. Indeed, such a source would be more consistent with a possible fulfillment of a pledge to a defendant of purchased freedom if caught." United States v. Ellis De Marchena, 330 F. Supp 1223 (1971) (Affirmed, Dkt. No. 71-2343. September 3, 1971, 9th Cir.). (Emphasis added.)

4 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

DECLARATION IN SUPPORT OF MOTION TO CONDUCT A HEARING

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

PURSUANT TO PENAL CODE SECTION 1275.1

I, Deputy District Attorney Max Huntsman, declare as follows: 1. That I am a deputy district attorney assigned to the investigation and prosecution of Todd DeStefano, Pasquale Rotella, Reza Gerami, Patrick Lynch, Antonio Estrada, and Leopold Caudillo. That investigation has included review of investigation conducted by the Los Angeles Memorial Coliseum Commission, interviews of witnesses, service of search warrants, review of bank records, and grand jury testimony 2. Todd DeStefano was an employee of the Los Angeles Memorial Coliseum Commission since prior to 2006. His title began as Assistant General Manager. His official duties included substantial influence over all aspects of Coliseum business, particularly marketing and planning of events. In 2009 his title changed but his job duties did not. 3. Pasquale Rotella owns a company called Insomniac which has produced electronic music concerts, or raves, at the Los Angeles Memorial Coliseum between 2008 and 2010. Reza Gerami owns a company called Go Ventures which has produced electronic music concerts, or raves, at the Los Angeles Memorial Coliseum between 2008 and 2010.

19

4. Patrick Lynch was an employee of the Los Angeles Memorial Coliseum Commission
20

since prior to 2006. His title was General Manager.

21 22 23 24 25 26 27 28

5. Antonio Estrada owned a company called Services For All Events which provided clean up services to the Coliseum from 2006 to 2011. 6. Leopold Caudillo was employed by the Coliseum to provide technical services and controlled a company called HH Tech from 2008 to 2010. 7. That after a review of the facts in this matter, I believe that the defendants obtained public funds in violation of Penal Codes 182, 487, 504, 68, and Government Code section 1090. Mr. DeStefano received at least $1,891,680 feloniously from Rotella and Gerami and an additional $240,000 from third parties through the fraudulent use of his company LAC Events.
5 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

Rotella and Gerami obtained unlawful contracts through their bribery of DeStefano resulting in
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

profits of millions of dollars. Lynch received $385,500.41 from Estrada in the form of checks labeled Events Consultant while determining the amount of public funds paid to Estradas company. Estrada received payments on millions of dollars of invoices while making regular payments to Lynch. 8. In July of 2006, Lynch directed Financial Director Ron Lederkremer to increase the amount paid to Estrada for services provided to the Coliseum. From August of 2006 until the beginning of 2007, Estrada wrote regular checks to Lynch and Lynch deposited them in his personal account. The checks carried the notation Events Consultant. In February of 2007, Lynch created a Miami bank account using a Miami address at which he did not live and providing for a signature stamp to be an authorized signature. Thereafter Estrada deposited the checks directly in to this account. When asked by an investigator for the Coliseum, Lynch denied the arrangement and said the account was a joint one with Estrada that Estrada claimed was created to pay a workers compensation claim. Lynch denied any agreement to receive a portion of public funds paid to Estrada, but admitted that Estrada had proposed such an arrangement. A draft contract between Estrada and Lynch to be partners in Estradas company and for monthly consulting payments was found on Lynchs computer. The payments from

19

Estrada continued through 2011 and totaled $385,500.41.

20

9.
21 22 23 24 25 26 27 28

From 2008 until 2010, Mr. DeStefano received at least $1,891,680 feloniously from

Rotella and Gerami. Mr. Rotella paid at least $1,175,000 during this period and Mr. Gerami paid at least $716,680. 10. In 2008, Mr. DeStefano appears to have drafted unsigned agreements with Rotella and Reza Gerami which provided that he would be paid personally for the use of the Coliseum and for his assistance in keeping costs down. In 2010 Mr. DeStefano emailed a copy of one of these agreements to Rotella and referred to it as the agreement they had entered in to years earlier. Also in 2010, Mr. DeStefano emailed a copy of one of the agreements to Gerami and referred to it as the agreement they had talked about years earlier.
6 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

11. In January of 2010, DeStefano wrote an email to Gerami stating that rent for an event
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

would be only $25,000. He further stated that he had made the arrangement with Pat (Patrick Lynch) but that Ron (Ron Lederkremer) did not know yet. DeStefano stated he had changed line items and that $60,000 would be wired to Gerami (the Coliseum disbursed profits from events after the event was complete). DeStefano asked that the money be wired to him. Bank records reflect that Go Ventures made an electronic deposit of $60,000 to DeStefano on January 20, 2010. 12. On March 30, 2010, Gerami wrote four checks to DeStefano totaling $194, 970.76. They had the following notations written on them: Venue/Rent/MM09 Final, MM10/In Ref. to Check 5819/Venue Rent, Venue Rent/ TAO 10, Rent/Venue/TAO 10. DeStefano deposited the checks on April 8 and April 16, 2010. 13. On April 21, 2010, Rotella wrote a check to DeStefano in the amount of $50,000 with the notation, EDC 09 LA Venue Use Fee / Balance. DeStefano cashed it on April 23, 2010. 14. As part of his official duties, DeStefano regularly represented the Coliseum in planning meetings for the events put on by Rotella. Rotella and Gerami were regularly present as well. DeStefano, Rotella, Gerami, and Lynch never disclosed the payments while DeStefano was influencing the contracts. DeStefano actively participated in the decision making processes

19

regarding Rotellas and Geramis contracts at all stages.

20

15. In 2009, Lynch told Commission Counsel Donovan Main that DeStefano was
21 22 23 24 25 26 27 28

considering doing outside work for promoters in the future. Main told him he could not give an oral opinion on the subject, but warned Lynch that conflict of interest law was broad and DeStefano could have no involvement in any promoters events while being paid for them. Lynch told Main that any outside employment would be accompanied by a firewall to keep DeStefano from being involved in events for promoters from whom he was receiving money. Lynch allowed DeStefano to continue to run Insomniac and Go Ventures events while being paid by them. 16. Between 2006 and 2010, DeStefano embezzled funds due the Coliseum from a
7 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

number of businesses in addition to Insomniac and Go Ventures. In 2006, DeStefano entered in

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

to a contract with Dreamworks to allow the company to conduct filming on Blades of Glory at the Sports Arena in exchange for paying $74,000 to LAC Events and kept the money. In 2008, DeStefano directed AM GLAD Productions to write half of a $100,000 deposit for a second season of filming American Gladiators at the Coliseum to LAC Events and kept the $50,000. In 2010, DeStefano drafted an agreement for the Coliseum to sell products from Southern Wine and Spirits but kept three checks totaling $49,500 made out to LAC Events Inc. On November 18, 2010, DeStefano deposited a check for $70,000 from Coca-Cola in his companys account in exchange for the Coliseum committing to an exclusive marketing and sales deal with Coca-Cola. Lynch and DeStefano planned this diversion of funds together and Coca-Cola was told to cancel a check initially written to the Coliseum and make one out to DeStefanos company instead. 17. In the summer of 2010, rave safety became a particularly public issue. LAPD recommended external cameras at unmanned Coliseum gates and DeStefano said they would be provided. They were cancelled shortly before the Electronic Daisy Carnival. Subsequent to the death of an audience member after this event, DeStefano actively worked behind the scenes to influence the Coliseum Commission to allow raves to continue. During this process none of the people aware of the illegal payments (DeStefano, Lynch, Rotella, and Gerami) disclosed to the

19

Coliseum Commission that DeStefano was being paid by promoters while advising them to
20

proceed with raves in the future.

21 22 23 24 25 26 27 28

18. In July of 2010, DeStefano was solicited by Bernard Parks Jr. to obtain campaign contributions for Commissioner and Council candidate Bernard Parks. DeStefano emailed the contribution form to Gerami and Rotella and asked them both to donate $500 and to provide him with $10,000 for a fireworks show hosted by Parks. 19. In July of 2010, DeStefano emailed Rotella a copy of a report prepared by Coliseum attorneys before it was public. The email had the subject heading confidential and directed Rotella to make sure he did not copy anyone. 20. As part of his official duties, DeStefano advised Commission members on the
8 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

feasibility of raising rents on the events put on by Rotella and Gerami. The Commission relied
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

on his advice without being informed of the $1.9 million dollars he had received or his agreement to keep expenses tight. 21. In September of 2010, while DeStefano was using his inside influence to benefit Rotella and providing information to Rotella, Rotella directed a wire transfer of $300,000 to DeStefano. 22. In January of 2011, DeStefano admitted to a Coliseum investigator that he had been paid by promoters for events at the Coliseum, but claimed he had only received money from Insomniac for the Electric Daisy Carnival in 2010. He denied ever receiving funds from Go Ventures. 23. Between 2008 and 2010, Leopold Caudillo caused over $20,000 of public funds to be paid to HH Tech without disclosing that the funds were then paid to him from the company which he controlled. 24. Because of the substantial amount of feloniously obtained funds and the length of time over which they were obtained, I believe a portion of any pledge, consideration, security, deposit, or indemnification presented by DeStefano, Rotella, Gerami, Lynch, or Estrada for bail would be feloniously obtained.

19

25. That compliance with Section 1275.1 of the Penal Code by the Court would be
20

facilitated by a hearing to determine that the source of any proffered bail was not feloniously
21 22 23 24 25 26 27 28

obtained. // // // // // //
9 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

26. The information contained herein is based upon interviews of witnesses conducted
2 3 4 5 6 7 8 9

by me, review of police reports and subpoenaed documents, and the taking of testimony before the grand jury resulting in the indictment in this case.

I swear under penalty of perjury that the foregoing is true and correct to the best of my knowledge. Executed this March 20, 2010 at LOS ANGELES, California.

__________________________
10

Declarant
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

10 MOTION TO CONDUCT A HEARING PURSUANT TO PENAL CODE 1275.1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

STEVE COOLEY, District Attorney MAX HUNTSMAN, Deputy District Attorney JENNIFER LENTZ SNYDER, Assistant Head Deputy Public Integrity Division 320 West Temple Street, Room 766 Los Angeles, CA 90012 (213) 974-6501 Attorneys for Plaintiff

SUPERIOR COURT FOR THE COUNTY OF LOS ANGELES STATE OF CALIFORNIA

PEOPLE OF THE STATE OF CALIFORNIA, Plaintiff, vs. TODD DESTEFANO , PASQUALE ROTELLA, REZA GERAMI, PATRICK LYNCH, ANTONIO ESTRADA and LEOPOLD CAUDILLO, Defendants

) ) ) ) ) ) ) ) ) ) ) ) ) )

Case No.: BA396065 PEOPLE'S PETITION TO FREEZE ASSETS WITHIN CONTROL OF DEFENDANTS, AFFIDAVIT OF DEREN BRADY, SCHEDULE OF ASSETS, PROPOSED NOTICE AND ORDER TO SHOW CAUSE (PENAL CODE SECTION 186.11)

TO THE HONORABLE JUDGE OF THE LOS ANGELES COUNTY SUPERIOR COURT: The People of the State of California, by and through the Los Angeles County District Attorney, petition this court for an order freezing identified asset that are in the control of the defendants, pursuant to Penal Code Section 186.11(d)(2). By indictment filed at or before the filing of this petition, defendants are charged with a series of crimes including bribery, embezzlement, and conflict of interest, which involve the diversion of more than $2.5 million from the Los Angeles Memorial Coliseum

PETITION TO FREEZE (PC 186.11) - 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

to the personal accounts of defendants DeStefano and Lynch, who were, at the time these crimes were committed, employed by the Coliseum. As set forth in the Declaration of Investigator Deren Brady, which is attached to this petition, a material element of these crimes is fraud and embezzlement from the Coliseum, as demonstrated by the acts of defendants DeStefano and Lynch, who received payments and kickbacks from Coliseum vendors and event promoters, including defendants Gerami and Rotella. Defendants Gerami and Rotella paid DeStefano in excess of $1.8 million in order to continue to hold the events they promoted at the Coliseum through contracts that DeStefano negotiated to the benefit of the promoters, thereby saving them significant sums of money, and to the detriment of the Coliseum which lost revenue by the reduced costs as well as the payments diverted to DeStefanos personal business accounts. Rotella and Gerami paid DeStefano to directly lobby for them to save them at least $1 million by virtue of his position as a Coliseum insider who affected the contract for their events and the amount of rent paid to the Coliseum. Lynch became aware of the relationship and allowed it to continue. Additionally, some companies were led to believe that DeStefanos company, Los Angeles Coliseum Events, was part of the Los Angeles Memorial Coliseum when in fact, it was not. As a result, those companies paid DeStefanos company for the right to to film, sell products and advertise at the Coliseum when the right to grant such licenses and any payment thereon rightfully belonged to the Coliseum. These crimes involve related felony conduct because they involve the same victim and a similar scheme, namely to divert money to which the Coliseum was entitled to defendants personal interests. Finally, the amount of loss resulting from the commission of these crimes exceeds $2.5 million.

PETITION TO FREEZE (PC 186.11) - 2

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Also attached is a schedule of assets believed to be in the control of the defendants, including a description of the specific asset, the nature of the asset, its value, the basis of its valuation and the date of valuation. As set forth in the declaration of Investigator Brady, there is a significant risk that these assets may be dissipated during the pendency of this action, thereby threatening the victims ability to recover restitution, to which the victim is constitutionally entitled when defendants are convicted of the crimes charged herein. The People therefore ask that this court issue a temporary restraining order protecting the identified assets during the pendency of this case, thereby prohibiting the transfer, encumbrance or hypothecation of any of the assets listed until further order of this court. A proposed Notice, Temporary Restraining Order, Lis Pendens and Order to Show Cause, in compliance with Penal Code Section 186.11 is submitted for this courts consideration. By its terms, the order seeks to protect the status quo of the property listed therein and provide notice to any present or subsequent interest holder of the pendency of this action. With regard to the real property assets, the Notice, orders and lis pendens will be filed and recorded with the recorder of the county in which the real property is located as soon as investigators obtain a conformed copy of the courts signed order. The People will provide notice of this courts order, and instructions regarding the filing of a verified claim, by certified mail, by personal service, and/or by publication as required by Penal Code Sections 186.11(d)(3), and (4) to any and all potential interest holders in the property listed in the order in a timely matter. Finally, the People request that this court direct the banking or financial institution to immediately disclose the account numbers and value of the assets of the accused held by the banking or financial institution, pursuant to Penal Code Section 186.11(d)(5).

PETITION TO FREEZE (PC 186.11) - 3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

DATED: March 22, 2012 STEVE District By MAX HUNTSMAN Deputy

Respectfully submitted, COOLEY Attorney

District Attorney

JENNIFER LENTZ SNYDER Assistant Public

Head Deputy Integrity Division

PETITION TO FREEZE (PC 186.11) - 4

1 2 3 4

AFFIDAVIT IN SUPPORT OF ORDER TO SHOW CAUSE AND TEMPORARY RESTRAINING ORDER I, Deren Brady, declare: I am a Senior Investigator for the Los Angeles County District Attorneys Office,

5 6 7 8 9 10 11 12 13

Bureau of Investigation. I have been a peace officer in the State of California for over sixteen years: five years for the Los Angeles County Sheriffs Department, and eleven years as an investigator for the Los Angeles County District Attorneys Office, Bureau of Investigation. I am currently assigned to the Public Integrity Division. I am the lead investigator in the case of People vs. Todd DeStefano, et al, case number PID Case 11-0087. As such, I have personal knowledge of the facts set forth herein, and if called upon, could and would competently testify thereto. Defendants Todd DeStefano, Patrick Lynch, Reza Gerami and Pasquale Rotella

14 15 16 17 18 19 20 21 22

have been indicted in case BA396065. Defendants have been charged with Conspiracy to Commit Embezzlement, Embezzlement, Bribery, Receipt of Bribes, and Conflict of Interest. Defendants are further charged with the enhancements pursuant to Penal Code Sections 12022.6(a) (loss exceeding $1,300,000) and Section 186.11, "aggravated white collar crime" enhancement. The defendants are charged with more than two felonies, a material element of which is fraud or embezzlement. The crimes charged are related by virtue of the fact that the crimes were committed against the same victim, the Los Angeles Coliseum.

23 24 25 26

The crimes involve fraud and embezzlement. The defendants diverted money paid by companies seeking to do business with the Coliseum into the personal and business accounts of defendant DeStefano. Other counts involve the payment of bribes by

PETITION TO FREEZE (PC 186.11) - 5

1 2 3 4

defendants Gerami and Rotella to DeStefano and his personal businesses, Los Angeles Coliseum Events (LACE) and Private Events Management. The evidence demonstrates that defendant Lynch facilitated the payments to DeStefano, and collected more than $385,000 in kickbacks over a five year period, paid to him by the

5 6 7 8 9 10 11 12 13

owner of a company that provided clean up services for events held at the Coliseum. The losses caused by the charged criminal conduct total $2,520,180. A breakdown of the losses is described in greater detail is on page of this affidavit.

The crimes as charged and as more specifically described herein are felonies, a material element of which is fraud or embezzlement, which involve a pattern of related felony conduct that resulted in the taking or loss by the Coliseum of more than $2.5 million. Based on the evidence I have reviewed, I strongly believe that the crimes alleged in the indictment constitute aggravated white collar crimes as defined by Penal

14 15 16 17 18 19 20 21 22

Code Section 186.11. I have been advised that Penal Code Section 186.11 allows the Superior Court to preserve any asset or property that is in the control of the defendants, up to three times the value of loss or taking until the conclusion of the criminal prosecution. Upon conviction, the assets may be levied upon by the Superior Court to pay restitution to the victims of the alleged crimes and to pay fines imposed pursuant to Section 186.11(c). The statute permits a fine equal to twice the amount of restitution to be imposed. Penal Code Section 186.11(e)(1).

23 24 25 26

The amount of restitution and fines established by Penal Code 186.11 permit this court to freeze assets in the control of defendants up to three times the value of the loss.

PETITION TO FREEZE (PC 186.11) - 6

1 2 3 4

The worth of the assets of Todd DeStefano sought to be frozen is estimated to be $535,981.44. The maximum value of DeStefanos assets that may be frozen, three times $2,065,250.00 is $6,195,750.00, which exceeds the worth of the assets of defendant DeStefano that are sought to be frozen.

5 6 7 8 9 10 11 12 13

The worth of the assets of Patrick Lynch sought to be frozen is estimated to be $1,425,255.77. The maximum value of Patrick Lynchs assets that may be frozen, three times $2,347,180.41 is $7,041,541,23 which exceeds the worth of the assets of defendant Lynch that are sought to be frozen. The worth of the assets of Pasquale Rotella sought to be frozen is estimated to be $1,754,020.86. The permissible value of Pasquale Rotellas assets that may be frozen, three times $1,175,000.is $3,525,000.00 which exceeds the worth of the assets sought to be frozen.

14 15 16 17 18 19 20 21 22

The worth of the assets of Reza Gerami sought to be frozen is estimated to be $372,624.13. The permissible value of Reza Geramis assets that may be frozen, three times $716,680.00 is $2,150,040,00, which exceeds the worth of the assets sought to be frozen. The total value of all assets sought to be frozen thus far is estimated to be $4,094,122.20. However, this total is based upon balances from bank and investment accounts that have not been updated since the financial documents were obtained pursuant to search warrant during the course of this investigation. Consequently, I

23 24 25 26

believe that it is highly likely that the total value is actually substantially less than is reflected by the asset schedule. Additionally, current information will be sought immediately upon the issuance of the freeze order so that accurate, current balances

PETITION TO FREEZE (PC 186.11) - 7

1 2 3 4

and values may be determined. That information will be immediately conveyed to the court. SUMMARY OF CASE The Los Angeles Memorial Coliseum and Sports Arena are publicly owned and

5 6 7 8 9 10 11 12 13

operated venues. During the time the charged crimes were committed, defendant Patrick Lynch was the general manager of the Los Angeles Memorial Coliseum and Sports Arena (Coliseum). Defendant Todd DeStefano was the assistant general manager of the Coliseum. As such, these defendants were in charge of the operations involving the Coliseum. Both were public employees of the Coliseum and were paid by the City of Los Angeles. As general manager, defendant Lynch was responsible for overseeing the operation of the Coliseum and Sports Arena. Lynch had the authority to hire and fire

14 15 16 17 18 19 20 21 22

employees, hire contractors and to determine how much they would be paid. He approved the final contracts entered into by the Coliseum with promoters and vendors. Defendant DeStefano ran the day to day operations for events at the Coliseum and Sports Arena. DeStefano personally negotiated as the Coliseums representative on many aspects of the Coliseums contracts with event promoters and vendors, and had primary responsibility for establishing and overseeing the execution of the contracts. While his job title changed in 2009, his duties and responsibilities did not. In addition to his position with the Coliseum, DeStefano operated a company

23 24 25 26

called Los Angeles Coliseum Events (LACE). According to public records, LACE (also known as LAC Events) and Private Event Management are private companies owned by DeStefano. Statement of economic interest reporting forms, commonly called Form

PETITION TO FREEZE (PC 186.11) - 8

1 2 3 4 5 6 7 8 9 10 11 12

700s, filed recently by DeStefano through his attorney, and bearing a signature date of April 27, 2011 list income from the following companies for the following periods: LAC Events from January 1, 2007 to November 7, 2007. LAC Events, Toole of North America, University of California, American Carol, AM Glad, Go Ventures and Insomniac from November 8, 2007 to December 31, 2008. LAC Events, LAC Events (spouses income) Go Ventures, Insomniac and Takeda Pharmaceuticals North America, Inc (spouses income) from January 1, 2009 to December 21, 2009. LAC Events, Private Events Management, LAC Events (spouses income), Private Events Management (spouses income), University of California, Southern

13 14 15 16 17 18 19 20 21

Wine, Coca-Cola, Go Ventures, Insomniac and Takeda Pharmaceuticals North America, Inc (spouses income), January 2010 to January 21, 2011.

DeStefano is listed on the forms as the President of LAC Events and Private Events Management, which are entertainment/event promotion companies. The business addresses are identified on the forms for LAC Events as 2202 S. Figueroa Street, Los Angeles, California 90007 and Private Events Management as 1612 Hastings Heights, Pasadena, California 91107. I have determined that the address on

22 23 24 25 26

Figueroa is a UPS Store with mailbox facilities. The address on Hastings Heights in Pasadena is DeStefanos former residence. I conducted a search of databases through Lexis Nexis, which reflects corresponding information regarding the ownership and location of these entities.

PETITION TO FREEZE (PC 186.11) - 9

1 2 3 4

Defendants Pasquale Rotella and Reza Gerami are the owners of event promotion companies Insomniac and Go Ventures respectively. These companies promote and hold Electronic Music Festivals which are often referred to as raves throughout the country. The Coliseum was one of the locations where these events

5 6 7 8 9 10 11 12 13

were held. Promoters are charged a rental fee for use of the Coliseum facilities, and are bound by contract with the Coliseum to paying all costs associated with the event, including off duty Los Angeles Police Department Officers, Los Angeles City Fire Department Fire and Emergency Medical Personnel, private security, ushers and ticket takers and janitorial service, to name a few. The planning of the events includes personnel from all the entities, both public and private, that will be involved. In most cases, the planning and negotiating process for the final number of personnel needed for the event is conducted by the promoter and a representative of the venue. The

14 15 16 17 18 19 20 21 22

Coliseum has the final word with regard to the services and personnel that will be required for an event to be held, with the exception of deployment of city fire and police on duty personnel. Most revenue is collected by the Coliseum, which then deducts the rental amount and any other fees owed to the Coliseum, and then transmits the balance to the vendor. Insomniac is the promoter for the Electric Daisy Carnival (EDC), an event that has been held at the Los Angeles Coliseum. Insomniac, as the promoter, was responsible for paying all expenses associated with holding the event at the Coliseum.

23 24 25 26

Go Ventures was the promoter for the yearly Monster Massive and Together as One (rave events) which are events that were held at the Coliseum. Together as One is

PETITION TO FREEZE (PC 186.11) - 10

1 2 3 4

an electronic music festival promoted by Insomniac and Go Ventures. The events were primarily run by Gerami. DeStefano was responsible for establishing the terms of the contracts between the promoter of an event and the Coliseum, which would include the services that were

5 6 7 8 9 10 11 12 13

required by the Coliseum to be provided by the promoters in order for their event to be held at the facility. This included coordination of services provided by LAFD, off duty LAPD personnel, private security, safety requirements, staging and striking staging, and other logistical requirements. For instance, in an interview with Los Angeles City Fire Department (LAFD) Fire Inspector John Benn, I learned that Benn has been a fire inspector for approximately 12 years and has been part of the event planning aspect for around five years. His current assignment is with the Public Assemblage (PA) Unit, which is responsible for

14 15 16 17 18 19 20 21 22

establishing occupancy loads for events (maximum capacity) held in the City of Los Angeles. He told me that initial conversations for the 2010 EDC event began approximately eight to ten months prior to the June 2010 EDC event. Benn dealt with Insomniacs CEO, Pasquale Rotella from the promoting aspect of the planning and requirements. Benn dealt with DeStefano as the point person for the Coliseum, and day to day operational needs. Any changes needed by LAFD for the venue would go through DeStefano. Rotella and DeStefano would meet and then tell LAFD what they wanted to do for the EDC (i.e. stage locations, performances, etc.). LAFD would then

23 24 25 26

tell them what would be required to make the proposed plan work. I interviewed Contemporary Services Corporation (CSC), Branch Manager Roy Sukimoto. Sukimoto has been working with Contemporary Services Corporation since

PETITION TO FREEZE (PC 186.11) - 11

1 2 3 4

1973. CSC has been contracted with the Coliseum since 1988. Sukimoto supervises approximately three thousand employees consisting of security officers, ticket takers and ushers. Initial conversations for the EDC event began approximately three to four months prior to the June 2010 EDC event. To determine staffing levels needed for the

5 6 7 8 9 10 11 12 13

EDC event, Sukimoto needed the footprint of the event. The footprint consists of the estimated attendance, entrances, exits, stage locations, etc. The footprint was provided by DeStefano and/or the promoter, Insomniac. Insomniac is responsible for supplying the final blueprint (plans) for the EDC event which must be approved by the LAFD. DeStefano was the point person who represented the Coliseum for the EDC event with Insomniac, LAPD, LAFD, EMS, CSC and all other entities involved with staging the event. Sukimoto provided DeStefano with his estimate/recommendations for CSC which required approval and review by Insomniac, LAPD and LAFD. CSC provided a

14 15 16 17 18 19 20 21 22

personnel and cost estimate based on the numbers provided to them by Insomniac. DeStefano had an influence on the total staffing numbers to be provided by CSC, which was part of his responsibility for the event. All budgeted proposals were done on paper and a revision was made if any changes were made. Any proposed changes from Insomniac would be channeled through the Coliseum representative, DeStefano. All phases of the EDC event planning were channeled through DeStefano. I interviewed LAFD Captain Keith Douglass. Douglass has been with LAFD for approximately 28 years. Douglass is also a Paramedic and oversees the Emergency

23 24 25 26

Medical Services Division (EMS). For the past four years Douglass has been in charge of the EMS medical planning for major public events. Prior to the 2010 EDC event, EMS was part of approximately ten to twelve pre-planning meetings for the EDC. EMS

PETITION TO FREEZE (PC 186.11) - 12

1 2 3 4

would set necessary medical components based on the statistics from previous events. The factors involved included, number of expected attendance, risk factors associated with the type of crowd, past medical services rendered, etc. DeStefano represented the Coliseums interest in the EDC event planning. DeStefano was the go between for the

5 6 7 8 9 10 11 12 13

Coliseum and EMS and was very in tune with the day to day operations of the Coliseum. Douglass would meet with DeStefano and determine the number of EMS personnel needed for the EDC event based on numbers from previous statistics and risk factors. Any negotiation would be based on the data provided by DeStefano. All negotiations for resources went through DeStefano and Insomniac to support the EMS plan. EMS also deployed foot patrol paramedics. The Coliseum has a private contract with EMTs inside the Coliseum. DeStefano had influence on the number of Coliseum EMTs used. Based on the number of Coliseum EMT deployed, Douglass would

14 15 16 17 18 19 20 21 22

determine the number of LAFD Paramedics and ambulances needed. I also interviewed past and current employees of the Coliseum who told me DeStefano was the person from the Coliseum responsible for planning and negotiating contracts for these events. I interviewed Los Angeles Memorial Coliseum Director of Finance Ronald Lederkramer. Since the time of the interview in 2011, he has left the employ of the Coliseum. Lederkramer was with the Coliseum for approximately 15 years. Lederkramer was Director of Finance in addition to being the Assistant General

23 24 25 26

Manager (GM). His responsibilities included financing, budgeting, billing, banking, promotions, event contracts and settlements.

PETITION TO FREEZE (PC 186.11) - 13

1 2 3 4

Approximately five years ago, Lederkramer began sharing his role as Assistant GM with DeStefano. DeStefano worked for the Coliseum for approximately 7 years before he was promoted by GM Lynch to Assistant GM. DeStefano was in charge of events, sponsorships and advertisements. DeStefano resigned at the beginning of

5 6 7 8 9 10 11 12 13

2011. Lederkramer believes the reason Lynch promoted DeStefano was to prevent him (Lederkramer) from supervising and watching DeStefanos activities. Accounting procedures changed with DeStefano in this position. Generally accounting settlements would be seen by the finance department and any changes would be made prior to the bill going to the promoter. DeStefano operated differently. DeStefano would show the bill to the promoter prior to bringing it to the finance department for a final stamp of approval. Changes could not be made at this time because DeStefano had already agreed with the promoter on the final billing.

14 15 16 17 18 19 20 21 22

Lederkramer provided me with copies of the Event Billing/Invoice Reports. DeStefano was involved with the technical day to day operations and event planning. Near the end of February or early March 2011, Lederkramer met Rotella for a beer at Houstons Restaurant in Century City. Rotella told him that he paid DeStefano $500,000 for the EDC event in 2010. Rotella thought he would not be able to hold the event at the Coliseum if he did not pay DeStefano. He was under the impression DeStefano and Lynch controlled the Coliseum Commission and DeStefanos company, LAC Events had rights to the Coliseum. Lederkramer explained to Rotella that there

23 24 25 26

was no an additional fee required for the Coliseum usage. Rotella paid DeStefano between $125,000 and $250,000 for the EDC event in 2008 and $250,000 for the EDC

PETITION TO FREEZE (PC 186.11) - 14

1 2 3 4

event in 2009. Rotella paid DeStefano by check and provided him with 1099s. Rotella told Lederkramer he paid DeStefano in order to hold his events at the Coliseum. DeStefano made the decisions for all the planning of the EDC event. He had total control of the number of personnel used and the expenses for the EDC event.

5 6 7 8 9 10 11 12 13

DeStefano could not influence the LAFD Inspectors requirements or the on duty LAPD area deployment, but did decide on the number of private security company personnel, off duty LAPD Officers and EMT personnel. According to Lederkramer, the final contract for the event was approved by Lynch. At the conclusion of the EDC event, the Coliseum made payments to Insomniac by check or wire transfer. The Coliseum deducted the rent and expenses for the EDC event and forward the remainder of the proceeds to Insomniac. Lederkramer also told me about Go Ventures and its owner, Reza Gerami.

14 15 16 17 18 19 20 21 22

According to Lederkramer, DeStefano dealt with was Reza Gerami on events promoted by Go Ventures. The final contracts were approved by Lynch. According to Lederkramer, DeStefano directly influenced the amount of revenue received by the Coliseum for rent for these events. DeStefano argued strenuously for reduced rental rates for the rave promoters, Gerami and Rotella, even though the gross amount of money generated by these events steadily increased over the years. Lederkramer provided me with a chart of two Go Ventures events showing the attendance, gross ticket sales and rent received by the Coliseum. The revenue

23 24 25 26

increased and the rent decreased. Notably, DeStefano only argued for the rent reduction from the Raves, but not on behalf of other events. Lynch agreed to the reduced rents .

PETITION TO FREEZE (PC 186.11) - 15

1 2 3 4

In July of 2009, Lynch told Lederkramer and other staff members DeStefano would be getting paid by the promoters and that the Coliseum Commission was aware of this arrangement. Previously, staff members would be paid a commission based upon the business they brought into the Coliseum. Because he was getting paid by the

5 6 7 8 9 10 11 12 13

promoters, commission normally paid by the Coliseum to DeStefano for the rave events would be discontinued, according to Lynch. Lederkramer believes the Coliseum Commission knew DeStefano was getting paid by promoters for outside events, but does not believe that the Commission knew that DeStefano was actively working on behalf of the Coliseum on the same events he was working on behalf of the promoters. Lederkramer recalled that he had lunch with DeStefano and DeStefano told him, if you guys dont have to pay me, Reza will. Lederkramer believes DeStefano made Go Ventures and Insomniac more

14 15 16 17 18 19 20 21 22

profitable at the expense of the Coliseum because the promoters paid a reduced fee for use of the Coliseum, and their costs were lower because DeStefano worked to save them from having to incur costs. An unsigned contract between DeStefanos company, Los Angeles Coliseum Events (LACE), Insomniac, and Go Ventures was found at DeStefanos residence during the execution of a search warrant.. The same contract was found on the computers of Rotella (Insomniac) and Gerami (Go Ventures) during search warrants conducted at their residences and businesses. The agreement gave DeStefano 10% of

23 24 25 26

the gross tickets sales, while requiring him to keep all cost associated with the events as tight as possible. The agreement established that, if the Coliseum increased the rent for the events at any time, LACE (DeStefanos private company) was responsible

PETITION TO FREEZE (PC 186.11) - 16

1 2 3 4

for paying the difference. Events are described in the document as any and all Electronic DJ shows including but not limited to: Electric Daisy Carnival, Love Festival, Monster Massive, Together as One, and any other yet to be determined Electronic Music Festival held in Exposition Park. Exposition Park includes the Coliseum, Sports

5 6 7 8 9 10 11 12 13

Arena and surrounding grounds. The agreement specified that LACE would oversee and be in charge of all necessary personnel and services connected with the events (i.e. Police, Fire, EMT, security etc). There is also a concession/sponsorship clause that paid LACE 15% commission on any deals brought into the event. The evidence suggests that the reduced rental rates and other contractual terms beneficial to the promoters were supported by DeStefano to ensure that his company, LACE, would continue to get paid by the promoter, even though the reduction in rent and other costs meant a reduction in revenue to the Coliseum.

14 15 16 17 18 19 20 21 22

E-mail correspondence and other documents obtained during this investigation demonstrate that DeStefanos business relationship with Rotella and Insomniac and Gerami and Go Ventures, went beyond his role as Assistant General Manager for the Coliseum. E-mails obtained by numerous search warrants in this case clearly show DeStefano was working for the interests of Rotella and Gerami while he was supposed to be representing the interest of the Coliseum, and that he was collecting money from the promoters for so doing. In a 2010 email, DeStefano describes a wire transfer of Coliseum money that he instructs Gerami to wire to DeStefanos accounts.

23 24 25 26

Rent will only be $25,000. Ron isnt aware =f that yet Ive already gotten it cleared by Pat. I was able =o change the line items that we spoke of earlier. There will be a =60,000 wire that hits your account

PETITION TO FREEZE (PC 186.11) - 17

1 2 3 4

hopefully today. When it does I would =ike that immediately wired over into my account. Kym has all of my =ank info. Ill give you a call later after Glo confirms the wire =as been sent out. Hopefully, you are bringing back the tickets today =o we can get them counted and finalize this early next

5 6 7 8 9 10 11 12 13

week. Give me a call =ith any questions brother. Im heading over to LAPD for the =ebrief from New Years at 1PM. Bank records obtained by search warrant show that, between September 2008 and September 2010, Insomniac (Rotella) paid DeStefano and his companies $1,175,000, and between January 2009 and April 2010, Go Ventures (Gerami) paid DeStefano and his companies $716,680. In total, DeStefano and his companies were paid $1,891,680 by the two promoters. None of this money was paid over to the Coliseum.

14 15 16 17 18 19 20 21 22

It is my belief that Rotella and Gerami paid DeStefano not only to be allowed to continue to hold their events at the Coliseum, but to directly lobby for them to save millions of dollars from his inside ability to affect the contract for the events and the amount of rent paid to the Coliseum. Lynch became aware of the relationship and allowed it to continue. I believe one of the reasons this was done was to allow Lynch to continue to collect hundreds of thousands of dollars in kickbacks Lynch was receiving from Estrada. Beginning in 2009, defendant Lynch facilitated DeStefanos crimes by permitting

23 24 25 26

DeStefano to continue to run the events promoted by Rotella and Gerami despite DeStefanos personal financial interest in those same events of which Lynch was notified. Further, defendant Lynch facilitated a scheme by DeStefano to embezzle

PETITION TO FREEZE (PC 186.11) - 18

1 2 3 4

$70,0000 for an exclusive marketing and sales agreement between the Coliseum and Coca-Cola. Lederkramer told me that he spoke to Coliseum Food and Beverage General Manager Hugh Gallagher. Gallagher told Lederkramer he (Gallagher) had been paid a

5 6 7 8 9 10 11 12 13

$5,200 commission by DeStefano for a food and beverage deal with Coca-Cola. According to Lederkramer, the Coliseum had no knowledge of such an agreement with Coca-Cola. Lederkramer provided me with a partially executed Beverage Marketing Agreement dated October 21, 2009, between Coca-Cola and the Los Angeles Memorial Coliseum Association. The Los Angeles Memorial Coliseum Association is the LLC for the Food and Beverage arm of the Coliseum. The contract was never fully executed. Lederkramer then provided me with a fully executed Beverage Marketing Agreement dated January 26, 2010, between Coca-Cola and the Los Angeles Memorial Coliseum

14 15 16 17 18 19 20 21 22

Events, LAC Events, DeStefanos company. According to Lederkramer, the Coliseum was not aware of this agreement and did not receive any of the proceeds from this agreement. It appears this agreement was made between DeStefano and Coca-Cola. This marketing agreement allowed Coca-Cola to sell product at the EDC event. According to Lederkramer, typically, with this type of legitimate marketing agreement, some of the funds would go to the Coliseum and the rest would go to the promoter, Insomniac. Insomniac owner Rotella told Lederkramer he was not aware of any marketing deal with Coca-Cola.

23 24 25 26

DeStefano signed an invoice to Coca-Cola, which was written on Los Angeles Memorial Coliseum letterhead, referring to the deal involving Coca-Cola Enterprises Inc. and LAC Events Inc. Bank records show $70,000 was paid by Coca-Cola to LACE,

PETITION TO FREEZE (PC 186.11) - 19

1 2 3 4

De Stefanos company, and deposited in the LACE account in November 2010. None of the money was paid to the Coliseum by LACE. Lederkramer had a conversation with Tony Estrada, owner of Service for All Events, a company that provides clean up and other services at the Coliseum. Estrada

5 6 7 8 9 10 11 12 13

was hired by Lynch approximately 13 years ago as a consultant. Estrada eventually provided all the porter and maid services for the Coliseum. Estrada told Lederkramer that when his hourly wages increased by $1.25 per employee a few years ago, it was because Lynch demanded a $1.00 an hour per employee kick back. Estrada would deposit the funds into a bank account out of Miami for Lynch. Following the Coliseum Commission scandal at the beginning of the year, and Lynchs resignation, Estrada began giving the $1.00 an hour per employee kickback that was previously paid to Lynch directly back to the Coliseum.

14 15 16 17 18 19 20 21 22

In October or November of 2009, Lederkramer presented Lynch with an analysis of the cost of Estradas business. The analysis showed the Coliseum could save over $400,000 per year by bidding and going with another company. Lynch ignored the analysis and continued with Estradas company. Lynch has full power over managerial decisions and is ultimately responsible for making the decisions. For the first few years, Estrada had a contract for his services, but eventually was paid based only upon what Lynch told Lederkramer to pay him. If the rate would increase, Lynch would simply tell Lederkramer what to pay him. Estrada would bill the Coliseum accordingly.

23 24 25 26

The Coliseum Commission hired Nedy Warren, Esq., Workplace Consulting and Investigations Company to conduct an investigation, after the EDC event that resulted in the death of one of the concert-goers. Warren issued a report, entitled, Privileged and

PETITION TO FREEZE (PC 186.11) - 20

1 2 3 4

Confidential Report of Investigation which I have reviewed. Included in the report were documents obtained from Estrada by Nedy Warren. Estrada provided his accounting records showing the $1.00 overpayment along with the corresponding cancelled checks made out to Patrick Lynch from his company, Services For All Events, Inc. The

5 6 7 8 9 10 11 12 13

checks were deposited into a Washington Mutual Bank/Chase Bank account in the name of Patrick Lynch. The payments are dated from August 10, 2006 to January 20,

2011 and total $366,034.01. Bank records obtained via search warrant were provided to Los Angeles County District Attorney Auditor Jose Soltero to examine. Soltero is conducting a full audit of the records. He summarized his findings in a spread sheet that he provided to me that shows deposits from Insomniac and Go Ventures to DeStefanos companies, LACE and Private Events Management. Soltero indicated that bank records show payments

14 15 16 17 18 19 20 21 22 23 24 25 26

and wire transfers from Go Ventures Bank of America account to DeStefanos Bank of America accounts, between 01/30/09 and 04/16/10, totaling $716,680. The memo lines on the payments include venue payments for Monster Massive and Love Fest, and venue rent. Soltero examined bank records that confirm the following payments by or to defendants relating to events at the Coliseum: Payments to DeStefano from Insomniac and Go Ventures ($1,891,680) Payments to Lynch From Services for All Events ($385,500.41) Payments to DeStefano from American Gladiator ($50,000) Payments to DeStefano from Blades of Glory Dream Works ($74,000) Payments to DeStefano from Tool of North America ($10,290)

PETITION TO FREEZE (PC 186.11) - 21

1 2 3 4

Payments to DeStefano from Southern Wine and Spirits of America ($49,500) Payments to DeStefano from Coca-Cola ($70,000) Between February 24, 2012, and February 29, 2012 Senior Investigator D. Wolf

and I interviewed American Gladiator Company Executive Producer Glenn Stickley,

5 6 7 8 9 10 11 12

Michael Wilson, Location Scout and Manager from Tool of North America, and Michael Pasqua Marketing Asset Manager for Coca-Cola.. The purpose of the interviews was to gather information about the contracts and payments made by their respective companies to DeStefanos companies. In each case, the above-entities believed the business transactions were being conducted with DeStefano as the representative for the Coliseum. They were unaware that DeStefano was the owner of LACE and believed LACE was a part of the Coliseum, which it is not. The payments were made to

13

LACE at the direction of DeStefano.

14 15 16 17 18 19 20 21

Bank records confirm that all payments were deposited into LACEs bank accounts. The $50,000 paid to LACE by American Gladiator Co. was a deposit for the use of the Coliseum as a filming location. There is no evidence that the Coliseum was aware of these payments, nor did the Coliseum receive any portion of the money paid to LACE or DeStefano. In addition, an unsigned letter of agreement, on Los Angeles Memorial Coliseum Letterhead, dated 9/1/09 from LACE from Southern Wine and Spirits of America was

22 23 24 25 26

found. The agreement established that Southern Wine and Spirits purchased the rights to the Spirit Category, which is believed to include spirit products to be sold at the Coliseum, and advertising. Bank records confirm payment by Southern Wine and Spirits to LACE was made. Checks were deposited into the LACE account, totalling

PETITION TO FREEZE (PC 186.11) - 22

1 2 3 4

$49,500, between 2/17/10 and 7/16/2010. I believe that defendant DeStefano embezzled the amounts paid by Southern Wine and Spirits to permit sale and advertising of their products at the Coliseum. A document entitled, Blades of Glory LOCATION AGREEMENT period 2

5 6 7 8 9 10 11 12 13

between Dream Works Productions and the LA Coliseum & Sports Area, through LAC Events Inc. was found during the investigation. The agreement appears to correspond to event billing from LAC Events Inc. dated August 8, 2006, payment records from Blades of Glory Bank of America account for $74,000 to LAC Events Inc. on October 5, 2006, and bank records showing a deposit in the same amount into the LACE account. I believe that DeStefano, through his personal company, LACE, received payment from Dream Works Productions for the use of the Coliseum facilities for filming. I believe that the evidence shows that DeStefano embezzled this money from the Coliseum because

14 15 16 17 18 19 20 21 22

it is the Coliseum that was entitled to receive the fees for use of its facilities, not DeStefano, as a Coliseum employee. Based on the foregoing, I believe the evidence proves that defendant DeStefano, while being paid by the Coliseum responsible for the booking and contracting of events at the Coliseum, was also secretly being paid by Insomniac through defendant Rotella and Go Ventures, through defendant Gerami. The diversion and siphoning of funds, the receipt of payments from promoters, and the embezzlement of money by DeStefano were facilitated by defendant Lynch, who was aware of DeStefanos dual role and

23 24 25 26

divided loyalties. Bank records clearly establish the money trail between Rotella, Gerami and DeStefano. These records along with the computer evidence of contracts and emails clearly show all parties were aware of and active participants of the crimes.

PETITION TO FREEZE (PC 186.11) - 23

1 2 3 4

I believe that the payments from defendants Rotella and Gerami to LACE and Todd DeStefano amount to bribery and embezzlement of funds that rightfully belonged to the Coliseum. Defendant DeStefano was paid by promoters for the use of the Coliseum at a reduced rate, and to keep the costs tight despite his obligation to the Coliseum to

5 6 7 8 9 10 11 12 13

ensure that it received the funds to which it was entitled. In addition, evidence proves conclusively that DeStefano was paid by several other companies including Dream Works, American Gladiators, Southern Wine & Spirits, and Coca-Cola for use of, advertising, right of sales and advertising at the Coliseum facilities. The Coliseum did not receive any portion of these payments, which were made directly to LACE by each of the companies. I further believe the evidence proves that defendant Lynch used his position as General Manger to personally receive kick-backs of more than $385,000 from Antonio

14 15 16 17 18 19 20 21 22

Estrada, whose private company was paid by the Coliseum for clean up services. Bank records, computer evidence of a contract between Lynch and Estrada, and statements from Estrada, clearly show both parties were aware of and active participants in these crimes. Based on all the evidence obtained in this case, I believe Todd DeStefano, Patrick Lynch, Pasquale Rotella and Reza Gerami committed the crimes of Embezzlement, Conspiracy to Commit Embezzlement, Grand Theft and Bribery when they conspired to hide the true relationship between DeStefano, Lynch, and promoters,

23 24 25 26

and to conceal diversion of payments for filming, advertising, and sales at the Coliseum that were paid to DeStefano and Lynch. Finally, I believe Todd DeStefano, while employed by the Coliseum, exerted influence on contracts between the Coliseum and

PETITION TO FREEZE (PC 186.11) - 24

1 2 3 4

Insomniac and Go Ventures, for his personal financial benefit, which is a criminal Conflict of Interest. Finally, losses suffered by the victim, the Los Angeles Coliseum, are as follows: Defendants DeStefano, Lynch & Garami

5 6 7 8 9 10 11 12 13

Payment by Go-Ventures to LACE & DeStefano Defendants DeStefano, Lynch & Rotella Payment by Insomniac to LACE & DeStefano Defendant DeStefano & Lynch Payment by Coca-cola $

$ 716,680.

$1,175,000.

70,000.

Defendant Lynch Payments by Service for All Events (Estrada) Defendant DeStefano $ 385,500.41

14 15 16 17 18 19 20 21 22

Payments by Southern Wine and Spirits Payment by American Gladiator Payment by DreamWorks Blades of Glory TOTAL LOSS TO COLISEUM $2,520,180.41

$ $ $

49,500. 50,000. 74,000.

I believe that the losses are attributable to each of the defendants are as follows: DeStefano & Lynch $1,175,000. $ $ 716,680. (joint/several with Lynch & Gerami (joint/several with Lynch & Rotella) 70,000. (joint/several with Lynch) TOTAL DeStefano & Lynch $1,961,168.00 DeStefano only $ 173,500. (solo) $2,065,250.00

23 24 25 26

TOTAL DESTEFANO

PETITION TO FREEZE (PC 186.11) - 25

1 2 3 4

Lynch only TOTAL

385,500.41 (solo)

LYNCH $2,347,180.41 $ 716,680 (joint/several with Lynch &

TOTAL GERAMI DeStefano)

5 6 7 8 9 10 11 12 13

TOTAL ROTELLA $1,175,000. DeStefano)

(joint/several with Lynch &

ASSETS SOUGHT TO BE FROZEN I reviewed property records pertaining to real property purchased or leased by DeStefano, Lynch, Rotella and Gerami along with documents obtained during the investigation. The properties, their legal descriptions, trust deeds and other encumbrances are summarized on the attached schedule. Similarly, search warrants were obtained for bank records pertaining to accounts held by DeStefano, Lynch,

14 15 16 17 18 19 20 21 22

Rotella and Gerami. Investigators reviewed those records to identify any additional financial accounts over which the defendants have control. Finally I conducted a search of DMV records to identify vehicles owned or registered to the defendants. Attached is a list of the assets thus located, including location, estimated worth, the basis of the valuation, and date of valuation. With regard to real property, I have used the market value based on property profiles and comparable sales. With regard to vehicles, I utilized the Kelly Blue Book. With regard to banking accounts and financial accounts, I listed the most recent balance available from the documents available to me.

23 24 25 26

I believe that the net worth of the assets that are subject to the petition to freeze totals which is less than three times the value of the estimated loss

$2,520,180 x 3 = 7,560540.

PETITION TO FREEZE (PC 186.11) - 26

1 2 3 4

Based on my training and experience, I believe that there is a substantial danger that the assets identified herein will be dissipated by defendants, which will severely impair the victims opportunity to recover restitution as is constitutionally mandated, should the defendants be convicted of the crimes alleged. The assets are easily

5 6 7 8 9 10 11 12 13

liquidated. I therefore request that this court issue a temporary restraining order freezing the assets identified on the attached asset schedule to protect the victims ability to collect restitution and the imposition of fines as the conclusion of this case Finally, I believe that an order prohibiting Todd DeStefano, Patrick Lynch, Pasquale Rotella and Reza Gerami or anyone on their behalf, including but not limited to DeStefanos wife, Carisse DeStefano and Lynchs wife, MaryAnn Lynch, from transferring, or otherwise encumbering the properties subject to this courts freeze order

14 15 16 17 18 19 20 21 22 23 24 25 26

until further order of this court is necessary to prevent the dissipation of assets sought to be frozen. I declare under penalty of perjury that the forgoing is true and correct. Dated: March , 2012 at Los Angeles, CA

________________________________ Deren Brady

PETITION TO FREEZE (PC 186.11) - 27