Thread by @innercitypress

OK - US v. Avenatti trial Day 2 starting with SDNY Judge Gardephe reading out his ruling on Avenatti's request to use notes of Boies Schiller meeting not taken by Scott Wilson, still on stand. patreon.com/posts/33576045 Inner City Press will live tweet: thread

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Judge Gardephe has denied Avenatti's / Srebnick's subpoena for notes taken at meeting at Boies Schiller without prejudice to renewing it if there's evidence that Scott Wilson played a role in editing the notes, or if the door is otherwise opened.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Scott Wilson of Boies Schiller back on the witness stand.
AUSA Podolsky: Are you familiar with the term legal complaint?
Wilson: I am.
AUSA Podolsky: When is a complaint filed?
Wilson: It's the first step in a lawsuit.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: Did the defendant say anything about filing a complaint?

Wilson: He didn't say anything about filing a legal complaint on behalf of his [pause] whistleblower... client...

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: He said, If I thought the Adidas scandal was bad, this would be worse.
AUSA Podolsky: Why did you ask him if he was wearing a wire?
Wilson: I'm with a lawyer who's asking me to keep information secret - and it was public that Nike was cooperating with SEC

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: After the meeting, I wanted to meet with my junior colleague as quickly as possible as "regurgitate" what I had observed

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: Why did you want to speak with Nike right away?
Wilson: Because as a lawyer I can only act for my client... Mr Geragos showed up to some unfinished office space on the 6th floor of his building. I asked him if he had this space wired.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: I was concerned we were being recorded. After five minutes we went back downstairs. I regained my composure. I wanted to appear collected. When we came back, we made a point to Mr. Avenatti, This is a big company, we need more time

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: Who responded and how?
Wilson: Mr. Avenatti, I don't recall if he used the word special or unique, for 2 reasons: on the eve of March Madness, and of the Nike earnings call.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: We told Avenatti that Nike's general counsel was in Europe, with the time difference we'd have difficulty reaching her. Mr. Avenatti said, "This isn't complicated."
AUSA Podolsky: What happened next?
Wilson: That didn't seem to be resonating.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: So I said to Mr. Avenatti, you could be destroying the life of these kids, teenagers...
AUSA Podolsky: How did he respond?
Objection! Whispered sidebar begins.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Sidebar is over.
AUSA Podolsky: What did Avenatti say?

Wilson: I don't remember which of these expletives he used, but he either said "I don't give a f*ck about these kids," or "I don't give a sh*t about these kids."

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: To try to calm things down, seeing how he was, I said to Avenatti, thinking he would understand it, "You're perfectly pretty but I'm not trying to f*ck you."

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: You thought he had the platform, Twitter and calling reportings, to gin this up, true or false, to make it a scandal.
AUSA Podolsky: What effect did you think this press conference could have on Nike?
Wilson: I thought he could capitalize on Adidas

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: By the end of this meeting, did you feel you had engaged in settlement discussions?
Wilson: Absolutely not.
AUSA Podolsky: How long did it last?
Wilson: Including the break on the 6th floor, 90 minutes.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: Did you contact law enforcement?
Wilson: Yes, I called the US Attorney's Office for the Southern District of New York. I told them about Mr. Avenatti's conduct. And about what new I'd seen about Mr. Franklin.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: Later on March 19, Geragos told me he had gotten Mr. Avenatti to "sit tight" until Thursday before he would hold the press conference.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Now the government is offering Exhibit 3, recording of a March 20 phone call. They will give jurors binders with transcripts. Judge Gardephe tells them the transcripts are only an aid - but that the audio itself is the evidence.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ The audio:
Wilson to Geragos, after pleasantries about weather: "I'm not saying we agree to your demand, we think it's too much."
AUSA Podolsky - let's stop and ask, Who is Michael in this?
Wilson: Mr. Avenatti.
AUSA Podolsky: Let's listen to the rest of the call.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Geragos (on call) - "It's very difficult the put the wraps on Michael."
AUSA Podolsky (in Courtroom 110) - What did you think that meant?
Wilson: Mr. Geragos' limited ability to hold Mr. Avenatti back.
AUSA Podolsky: Let's turn to Exhibit 4.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ On call, Avenatti: "A million dollars doesn't move the needles for me... The New York Times is awaiting my call. I'm not f*cking around with this thing any more. Let's just be done. I'll go take $10 billion off your client's market cap. I'm not f*cking around."

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: It was getting confusing at this point. He said we could hire someone else, but we'd have to pay him twice the amount.
AUSA Podolsky: When he said, "Then we're done," what did you think he meant?
Wilson: That's he'd go public.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ We're back. AUSA Podolsky says cross of Wilson will begin in afternoon and that Nike is seeking an order. Judge Gardephe says he will be ruling on that shortly. Direct continues:
AUSA Podolsky: How did you get to Mr Geragos' office that day?
Wilson: I walked.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Now playing secret audio of meeting, small talk including pasta and having an umbrella for the rain. UNclear why they didn't jump over this.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: Would it be unusual to hire an adverse party as your lawyer to investigate something?
Objection!
Judge Gardephe: Overrules.
Wilson: Yes. Because there are conflict rules.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: So Mr. Avenatti proposed a "blended hourly rate" of $950?
Wilson: Yes, junior partner $500 an hour, senior partner $1300 an hour, like that.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: Mr. Avenatti said if Nike paid another law firm, he would get two times that, under what he called a 'Most Favored Nations' clause. Then Mr. Geragos recalled that, and "everytime USC hires the same law firm, and it's just a white wash."

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky (he's been doing the whole direct) - "What was meant by USC?"
Wilson: Parents paying bribes to get their kids into USC.
AUSA Podolsky: Then Mr. Avenatti said, It will be up to Nike whether they self-disclose... those aren't our decisions to make.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: When he said, "Have you ever held the balls of a client in your hands," what did you think he was saying?
Wilson: It was a crazy thing. We were in the twilight zone.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Wilson: Mr. Avenatti was trying to assure me that if we took his deal, it would be up to Nike whether to report whatever he found.
Judge Gardephe: We'll take lunch break now. [To the jurors] Please don't discuss the case. We'll resume at 2 pm.
But there's more....

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Judge Gardephe: Is there anyone here from Nike who wishes to be heard about an order under Rule 502(d)
From the gallery: Yes.
[It's a Mr Skinner.]
Judge Gardephe: I'm aware from the 3500 material that Mr. Holmes was interviewed. Does the privilege survive?

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Skinner for Nike: Whatever happened between us and the government can't be changed. But we are concerned about testimony in this trial. Someone might argue that privilege has been waived. So we'd like an order to that effect. This is an unusual proceeding.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Judge Gardephe: I will issue an order that if there is testimony in this trial, I am not issuing anything retroactive...
And it's done, for now: lunch time. Thread will continue.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ We're back, as cross examination of Wilson begins.
Srebnick: You refused to speak with us, Mr. Wilson, right?
Wilson: Yes, I declined.
Srebnick: So that meeting, Mr. Holmes took notes, correct?
Wilson: That is the correct spelling of his name.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Howard Srebnick: You spoke about your understanding of what Mr. Avenatti meant, right?
Wilson: There was questions about that.
Srebnick: About self-reporting, what is your understanding?
Wilson: Voluntary reporting. Someone Mr. Avenatti knew of grand jury subpoena

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: So Nike got a grand jury subpoena for documents, right?
Wilson: Yes.
Srebnick: Nike was concerned about criminal exposure?
Wilson: I don't know.
Srebnick: Did Nike meet with the SDNY prosecutors, in Oct 2017?
Wilson: I'm not sure if in October.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: Nike was purporting to be cooperating with the government?
Wilson: Nike said it publicly.
Srebnick: But not about the grand jury, required for a felony, right?
Judge Gardephe: I think we're getting pretty far afield.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: So when Mr. Avenatti showed you documents, they had already been produced by Nike, right?
Wilson: To the extent they had been identified as responsive.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: By then, Adidas had been sued by a player, Brian Bowen?
AUSA: Objection, Your Honor.
Judge Gardephe: Do you want to approach?
Sidebar.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: So Geragos had called the Nike lawyer he had worked with the other matter, the NFL player?
AUSA: Objection.
Judge Gardephe: You're going to have to break that down.
Srebnick: Mr. Geragos appeared to be a proponent of having the meeting with Mr. Avenatti?

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: You were aware that Mr. Auerbach had contacted Nike's John Slusher? Who's he?
Wilson: He's Nike's head of global marketing.
Srebnick: Did that put Nike on red alert?
Wilson: My understand is it was vague.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: So before the meeting even started, you were deceiving them - you say you didn't think it was covered by Rule 408, but you told them it was--
AUSA: Objection.
Judge Gardephe: Sustained.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: When Mr. Avenatti said Nike had a problem that would make Adidas' look small, did you deny it?
Wilson: I was in listening mode.
Srebnick: When Mr. Avenatti referred to Nike payments to the Number One draft, you knew who that was?
Wilson: I did.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: Mr. Avenatti said he was aware that Nike had received a subpoena from the SDNY?
SDNY AUSA: Objection?
Judge Gardephe: Overruled.
Wilson: I do recall he said he was aware of a subpoena.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: And you do know that the SEC has an open [probe] into Nike?
Wilson: I have become aware.
Srebnick: Do you recall Mr. Avenatti saying that Carlton Debose and Jamal James (sp) squeezed out his client?
Wilson: I don't recall that.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: And Mr. Avenatti told you there were other claims?
Wilson: I recall the phrase "other claims"... I knew Mr. Ayton had played with Cal Supreme, so I suspected it involved Mr. Franklin.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: Do you recall Mr. Avenatti saying his client had been required to make a $10,000 payment to the mother of the Number One draft pick?
Wilson: I don't remember if it was to the mother or to the player himself.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: Do you recall Mr. Avenatti describing a flight from LA to Phoenix to put cash in the hands of the mother of the Number One draft pick?
Wilson: A flight was discussed.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: You were aware that Mr. Geragos had successfully resolved a matter between Nike and a... major NFL player?
Wilson: I'm not sure from whose perspective it was successful, but it was resolved.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: Mr. Avenatti told you what the demand was.
Wilson: He made a two part demand.
Srebnick: Do you recall Avenatti saying he would draft a settlement which would not prevent his client from testifying to the government?
Wilson: I don't recall that.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ After a long sidebar, Judge Gardephe tells the jury it's going to take awhile, he's going to let me go for the day. Says tomorrow "bring a granola bar," there'll be no lunch break. Thread will continue

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Now with jury and Wilson gone, Judge Gardephe remains US Attorney's Office they can't walk with Wilson while he remains on cross examination.

Now AUSA Podolsky insists he doesn't know what the Srebnicks mean by "white wash."

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Scott Srebnick: Wilson on direct said My jaw dropped, my pulse was pounding. We should be able to ask if it was because Nike had paid money to the Number One NBA draft pick - and that the internal investigation would be shown to be meaningless.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA Podolsky: Mr Wilson never said Boies found nothing wrong in Nike--
Judge Gardephe: That's what Mr. Srebnick wants to get into. Whether the source of Mr. Wilson's anxiety was much more personal

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Srebnick: Maybe the government could inquire with the witness how much was spent on the Boies investigation of Nike--
Gardephe: No, no, no. But there is a germ of possible bias you should be allowed to explore.

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ Scott Srebnick: We want to ask if they interviewed Mr. Franklin, Mr Auerbach--
Judge Gardephe: I'd be predisposed to allow you to ask him if they were interviewed. I don't see any problem with that, the witnesses are central here. Anything else?

@MatthewLeeICP @sdnylive @businessinsider @dcexaminer @newsobserver @nakednews @KTVZ AUSA: We filed a letter about text messages --
Judge Gardephe: I'm aware of it. I haven't read it, but I'm aware of it.
Again Avenatti will stay with lawyers in courtroom. Stories soon patreon.com/posts/33576045