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Home Court filings USA v. Ayvazyan et al — Arman Hayrapetyan filings, C.D. Cal. TRANSCRIPT filed as to Defendant Richard Ayvazyan, Marietta Terabelian, Artur… — USA v.…

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TRANSCRIPT filed as to Defendant Richard Ayvazyan, Marietta Terabelian, Artur… — USA v. Ayvazyan et al (Dkt. 1283)

Record facts

CourtU.S. District Court for the Central District of California
Filed2022-02-15

U.S. District Court for the Central District of California · No. 2:20-cr-00579-SVW · Doc. 1283 · 2022-02-15 · Docket on CourtListener

Summary

Reporter's transcript of the June 14, 2021 pretrial conference in USA v. Ayvazyan et al, No. 2:20-cr-00579-SVW, before Judge Stephen V. Wilson of the U.S. District Court for the Central District of California, filed February 15, 2022 as Doc. 1283. The court denies a motion to bar a witness from testifying about e-mails, rules that the defense may learn the full compensation of the government's retained accountant, and orders production of draft summary charts. It states that defendants need not renew objections already decided on motions in limine, and discusses a preliminary statement to the jury panel and a voir dire question on the defendants' Armenian descent. The court also sets out its rules on objections and opening statements. The 31-page transcript ends at 2:33 p.m. with the certificate of the official reporter.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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UNITED STATES DISTRICT COURT
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
HONORABLE STEPHEN V. WILSON, JUDGE PRESIDING
UNITED STATES OF AMERICA,
           Plaintiff,
Vs.
AYVAZYAN, ET AL.,
           Defendants.
________________________________
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No. CR20-00579-SVW 
REPORTER'S TRANSCRIPT OF PROCEEDINGS
PRETRIAL CONFERENCE 
LOS ANGELES, CALIFORNIA
MONDAY, JUNE 14, 2021
MIRIAM V. BAIRD, CSR 11893 
OFFICIAL U.S. DISTRICT COURT REPORTER
350 WEST FIRST STREET, FOURTH FLOOR
LOS ANGELES, CALIFORNIA 90012
MVB11893@AOL.COM  
Case 2:20-cr-00579-SVW     Document 1283     Filed 02/15/22     Page 1 of 31   Page ID
#:19848

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UNITED STATES DISTRICT COURT
A P P E A R A N C E S
IN BEHALF OF THE PLAINTIFF,
UNITED STATES OF AMERICA:
CATHERINE SUN AHN
SCOTT PAETTY
AUSA - OFFICE OF US 
ATTORNEY
ORGANIZED CRIME DRUG 
ENFORCEMENT TASK FORCE 
SECTION
312 NORTH SPRING STREET 
SUITE 1400
LOS ANGELES, CA 90012
CHRISTOPHER FENTON
US DEPARTMENT OF JUSTICE
1400 NEW YORK AVENUE, NW
WASHINGTON, DC 20530 
IN BEHALF OF THE DEFENDANTS,
AYVAZYAN, ET AL.,: 
FRED MINASSIAN
KAPLAN KENEGOS AND KADIN
9150 WILSHIRE BOULEVARD 
SUITE 175
BEVERLY HILLS, CA 90212 
ASHWIN J. RAM
STEPTOE AND JOHNSON LLP
633 WEST 5TH STREET SUITE 
1900
LOS ANGELES, CA 90071 
JOHN LEWIS LITTRELL
RYAN FRAZER
BIENERT KATZMAN LITTRELL 
WILLIAMS LLP
903 CALLE AMANECER, SUITE 
350
SAN CLEMENTE, CA 92673 
JENNIFER J. WIRSCHING
ATTORNEY AT LAW
1935 ALPHA ROAD, SUITE 216
GLENDALE, CA 91208 
THOMAS A. MESEREAU, JR.
MESEREAU LAW GROUP
10100 SANTA MONICA 
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#:19849

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UNITED STATES DISTRICT COURT
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BOULEVARD SUITE 300
LOS ANGELES, CA 90067 
PETER JOHNSON
LAW OFFICE OF PETER JOHNSON
409 NORTH PACIFIC COAST 
HIGHWAY SUITE 651
REDONDO BEACH, CA 90277 
ALSO APPEARING:  LAURA CRAWFORD
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#:19850

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UNITED STATES DISTRICT COURT
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LOS ANGELES, CALIFORNIA; MONDAY, JUNE 14, 2021; 1:30 P.M.
---
THE CLERK:  Calling case CR20-00579-SVW, USA vs. 
Ricahrd Ayvazyan. 
Counsel, please state your appearance for the 
record.  
MR. PAETTY:  Good afternoon, Your Honor.  
Scott Paetty for the United States, joined at 
counsel table with me are trial attorney Chris Fenton and the 
Assistant United States Attorney Catherine Ahn and Special 
Agent Jeffrey Clark from the IRS.  
MR. RAHM:  Good afternoon, Your Honor.  
Ashwin Ram on behalf of Richard Ayvazyan.  I'm 
joined currently not at counsel table with Michael Keogh, 
Megan Newcomers, Nicholas Silverman.  Would it please the 
Court if at least one co-counsel could join me within one of 
these three empty seats?
THE COURT:  Yes.
MR. RAHM:  Thank you, Your Honor. 
MR. LITTREL:  Good afternoon, Your Honor.  
John Littrell, also Ryan Frazer is with me.  I 
would also ask that he be invited to join me at counsel 
table.  We represent Mary Terabelian.  Thank you, Your Honor.  
MS. WIRSCHING:  Jennifer Wirsching for Artur 
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UNITED STATES DISTRICT COURT
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Ayvazyan, who is also represented by Tom Mesereau.  We would 
request that Mr. Mesereau be able to be seated at the table 
with us. 
THE COURT:  Absolutely.  
MR. MINASSIAN:  Good afternoon, Your Honor.  
Fred Minassian on behalf of Tamara Dadyan who is 
present in the court this afternoon. 
MR. JOHNSON:  Peter Johnson on behalf of Vahe 
Dadyan who is also present.  
MS. CRAWFORD:  Good afternoon, Your Honor.  
Laura Crawford standing in for attorney Gilbert 
Tahmazian on behalf of Arman Hayrapetyan who is present being 
assisted by the Armenian interpreter.  
THE COURT:  Who is that now?  
THE CLERK:  That was Laura Crawford in place of 
Mr. Tahmazian who is on the airplane.  
THE COURT:  Okay.  This is the time for further 
pretrial conference.  The Court spent with the lawyers a 
substantial part of Friday afternoon having an extensive 
hearing regarding many of the matters that were raised.  
There are some additional matters that are raised.  One of 
them relates to Massino, and his testimony.  With regard to 
the motion to bar him from testifying about the e-mails, that 
motion is denied.  He can testify regarding the e-mails.  The 
wording of the proposed question should be altered in the 
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sense that he shouldn't be asked if he is -- does he 
recognize certain a name from the e-mail on another document.  
The term recognize implies some mental state or some 
knowledge.  
I would allow that type of questioning if the 
questioning is along the lines of I show you exhibit so and 
so, and do you see the name of so and so on the -- on that 
document.  It is similar, but there is a nuance.  I think 
that nuance should be observed. 
With regard to the Robinson, that's the accountant.  
I do believe that the defendants have a right to know about 
the full extent of her compensation, not just from the work 
she did on this case, but what her accounting firm performed 
as much -- and all of the other cases that she was retained 
by government to do similar work.  I don't know how many 
cases there are, but it all goes to her bias and so that 
should be produced to the defense.  
The defense wants all correspondence of any kind 
between Johnson and the government.  My view is that they're 
entitled to any correspondence that falls within the Jencks 
Act.  I don't know what the government has, but surely they 
know of their responsibilities under the Jencks Act.  While 
the Jencks Act speaks to providing documents after testimony, 
I would implore the government to provide any Jencks 
materials before the witness testifies so that there's a 
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better opportunity to prepare cross-examination.  
Regarding drafts of summary charts, the government 
in its answer a few hours ago said that it would provide 
that.  It also noted that any differences are self -- 
evident.  So I'll order that.  The government is not required 
to provide the bills and breakdown of the bills that Stout or 
Johnson submitted.  
With regard to the procedures at the trial, the 
defendants have made many motions in limine regarding 
evidentiary rulings.  The Court for better or worse has ruled 
on all of them.  So the defense is not required to object 
during the trial on those grounds to any testimony.  My view 
is that the record is preserved if it comes to that.  
Regarding a preliminary statement to the jury prior 
to jury selection, the Court has to say something to the 
panel as a whole.  There will be a hundred jurors reporting 
tomorrow.  Because if I don't say something generally about 
the case, they won't know how to answer the voir dire 
appropriately.  So I was thinking about just saying that the 
government has charged the defendants with wire fraud, a 
conspiracy, bank fraud, whatever, money laundering, whatever 
it is.  The government's theory is that the defendants 
conspired to submit false documents in order to get those 
loans and then used the funds for purposes that weren't 
allowed under the loan program.  I guess, I can mention 
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generally the loan program.  
Then I should say that the defendants, of course, 
deny all of the charges, and the trial begins with the 
presumption of innocence and the burden on the government to 
prove the charges beyond a reasonable doubt.  I mean, I'm 
sort of offering this off the cuff.  I'll try to refine it, 
but is that something that seems reasonable or what is -- 
what comments are there?  
MR. RAM:  Yes, Your Honor.  That seems reasonable.  
MR. LITTRELL:  Your Honor, I would ask that the 
Court specify that these were COVID-19 -- 
THE COURT:  You know something.  Let me ask the 
question.  I hope that not in politic.  Is everyone here 
vaccinated?  Anyone not vaccinated?  Who is not vaccinated?  
You know something, my close-up vision is a lot better than 
my distance vision.  I don't know.  Tell me who you are?  
DEFENDANT ARTUR AYVAZYAN:  Not vaccinated. 
THE INTERPRETER:  I'm not having nighted. 
THE COURT:  All of the lawyers are vaccinated; 
right? 
(All attorneys concur) 
MR. LITTRELL:  Shall I take off my mask when I 
speak with you. 
THE COURT:  It's very hard.  You know this, is kind 
of being born again.  I haven't been here for 15 months.  I'm 
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trying to get my bearings.  I am having trouble hearing if 
you have the mask on.  
MR. LITTRELL:  I'm having the same problem, 
Your Honor. 
THE COURT:  Am I being heard clearly?  
MR. LITTRELL:  I can hear you.
THE COURT:  Go ahead.  
MR. LITTRELL:  The suggestion, I'd ask that the 
Court inform the jury that these were COVID relief funds.  
The reason I think is they may have strong feelings about it 
given where we are with the pandemic.
THE COURT:  I will.  
MR. LITTRELL:  They are disaster relief funds 
specifically targeted to small businesses for COVID. 
THE COURT:  Who is your client, Mr. Littrell?
MR. LITTRELL:  Mary Terabelian. 
MR. JOHNSON:  Your Honor, this is Peter Johnson on 
behalf of Vahe Dadyan.  We have no objection to the summary. 
THE COURT:  All right.  I will refine it.  Before I 
deliver it, I'll run it by you to make sure I'm not 
misstating something.  
With regard to the -- and the voir dire will be 
conducted by the Court.  I will ask many of the questions 
that were proposed.  If I'm not mistaken, Mr. Littrell, you 
proposed some questions, correct?  
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MR. LITTRELL:  I did, Your Honor. 
THE COURT:  You proposed some questions about, you 
know, the defendants being of Armenian descent and whether 
that would affect any juror's ability to be fair and 
impartial, something along those lines?  
MR. LITTRELL:  Yes, Your Honor.
THE COURT:  I think that's a fair question. 
MR. LITTRELL:  I may also propose a question about 
whether any of the prospective jurors have -- speak Armenian 
or have any understanding of the Armenian language. 
THE COURT:  I know what you said.  I can remember 
it. 
MR. LITTRELL:  Very well. 
THE COURT:  Let's see here.  I don't think this 
hearing will be that long.  We had maybe three hours Friday.  
We covered a lot of ground.  I just want to make sure I tie 
up all of the loose ends.  
Some things that I insist upon.  When you address 
the Court or the jury, stand at the lectern.  You don't have 
to be a wooden soldier, but don't navigate too far from the 
lectern.  I discourage bench conferences.  In this case, 
it -- I mean, I can't remember a criminal case with more 
motions in limine.  Maybe there have been, but not in my 
recent experience.  So we've covered a lot of the important 
matters.  If there is a ruling during the trial that someone 
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objected to and you want to be reheard on that, and if it's 
an important ruling, let's do it at a recess or the lunch 
hour.  
Regarding objections, when you make an objection, 
stand up.  Make the objection clearly on legal grounds, 
whatever it is.  Wait for the Court's ruling.  Don't argue 
the objection.  Don't argue it in the form of making the 
objection, or certainly after the Court rules on it.  That's 
standard practice.  
Regarding opening statements, I did discuss the 
Court's view of opening statements at the conference on 
Friday.  I want to make sure that everybody understands it.  
It has become in legal circles to be known as opening 
argument.  It isn't an argument.  In every trial seminar, 
even back when I was trying cases, every seminar talked about 
the importance of the opening statement.  I'm not suggesting 
that it's unimportant, but the opening statement can be 
persuasive by arranging the facts but not argument.  I know 
that in the -- in the culture, that rule is observed and not 
observed.  What constitutes a legitimate opening statement in 
some courts is different than what might be the case in other 
courts.  
I believe, as I said Friday, in the principles well 
known in psychology of primacy and recency.  I don't want the 
jury to make up their minds before they hear any evidence.  
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There have been studies which I don't know how reliable they 
are, but studies as the term goes these days, that have shown 
that jurors sometimes do make up their mind quickly.  
So with regard to the government, I have noticed 
over the years -- I don't know if it's part of your 
mentoring, but when you make an opening statement, I often 
hear the first sentence it sounds something like this, and 
I'm just paraphrasing.  I'm not putting words in your mouth.  
The prosecutor will address the jury and say, first words out 
of his or her mouth, this case is about fraud and deceit, and 
it's about a gross abuse of an important government program.  
I mean, that's -- that's what I hear sometimes.  Don't do 
that because that's argument.  That is your view that it's 
about fraud and deceit.  It's the jury's mind to determine 
that.  
And the purpose of an opening statement is not to 
review in detail what every witness is going to say or every 
document says.  It's to give the jury some perspective, and 
it shouldn't be lengthy.  I mean, I don't see why you 
couldn't make an opening statement in this case any longer 
than 45, 50 minutes or tops, an hour.  I mean, the detail is 
not part of the opening statement.  The parties shouldn't 
discuss the law in the opening statement or burdens.  I will 
tell the jury, as I've already indicated, what the burden is 
and what the presumption is.  I don't want the parties to 
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argue burdens.  
From the defense standpoint, obviously, I can't 
predict what evidence there will be.  Of course, the defense 
has no obligation to produce any evidence, but certainly the 
defense can tell the jury generally what its theory of 
defense is.  It can describe, as I instructed the government, 
what facts it will introduce either on cross-examination of 
government witnesses or their own witnesses.  Don't use the 
code words, which I discussed Friday.  You know, the code 
words, I expect the evidence to show.  And after that, is a 
few pages of argument, or I'm going to make this promise to 
you in the opening statement.  Usually that is argument.  Any 
such camouflage.  I mean, the opening statement to me is 
important, but it is straightforward, and it may be the most 
bland part of the case.  It's just an opportunity to help the 
jury as the evidence comes in.  It's not an opportunity to 
detail the evidence.  
I mean, I'm making general comments.  I don't know 
what you have in mind, but I'm trying to do what I can to 
eliminate any issues.  Let's see, there was something else 
here.  I have a question for the government.  I was reading 
the trial memorandum yesterday.  In the trial memorandum 
there are certain references to one of the defendants or more 
performing some allegedly unlawful act while on bail.  What 
is the legal significance, if any, about that?  Can someone 
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provide an answer?  
MR. FENTON:  Yes, Your Honor.  There's two sets of 
counts -- 
THE COURT:  Could you take the lectern.  It's 
easier for me to hear you.  Tell me your name. 
MR. FENTON:  Christopher Fenton, Your Honor.  
THE COURT:  Okay.  
MR. FENTON:  There are two sets of Counts that were 
committed, crimes that were committed while the defendants 
were on pretrial release.  The fact that those counts were 
committed while the defendants were on pretrial release is in 
violation of 18 USC 3167, which ultimately results in a 
statutory enhancement at sentencing.  
THE COURT:  So it's a sentencing issue then?  
MR. FENTON:  It is. 
THE COURT:  But you're saying under Apprendi and 
those cases, it has to be determined by the jury?  
MR. FENTON:  That's correct, Your Honor. 
THE COURT:  I see.  What input do the defendants 
have in that regard?  Anything?  
MR. RAHM:  Your Honor, one option. 
THE COURT:  You're close enough so I can hear you 
you're, Mr. Rahm. 
MR. RAHM:  Ashwin Ram on behalf of Richard 
Ayvazyan. 
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THE COURT:  Right. 
MR. RAHM:  One option to -- I understand the issue 
the Court has referenced.  One option would be for the 
parties -- we can speak to the government and, perhaps, 
stipulate that Mr. Ayvazyan, for example, was on release.  So 
that's something that doesn't need to be raised to the jury 
potentially.  That is not seriously in dispute.  So that 
could take the issue off the table. 
THE COURT:  Okay.  If you can work that out, that 
would be good.    
MR. RAHM:  The issue, Your Honor, would be if the 
stipulation is read to the jury, it has the same effect of 
testimony that he was on release from custody.  So that is 
ultimately the optics issue.  I don't know if the government 
was planning on calling -- it doesn't appear that there's a 
witness on the witness list to speak to the fact of the 
release, but perhaps the government -- we haven't had this 
discussion. 
THE COURT:  I mean, I don't know whether anyone 
committed any crime here, but to the extent a crime was 
alleged, it would appear from a timing standpoint, it was at 
least with some when they were on release; correct?  
MR. LITTRELL:  Correct.  The time frame itself is 
during the release. 
THE COURT:  I see.  What is it -- what is the 
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status of that Rule 902 question?  
MR. LITTRELL:  The 902.11 -- 
THE COURT:  The certification issue. 
MR. LITTRELL:  Yes, Your Honor.  The parties 
submitted motions over the weekend.  The government -- 
actually, Mr. Silverman from our team can speak to that issue 
if he can come to the lectern. 
THE COURT:  Now I remember seeing that.  Go ahead.  
Is that Mr. Fenton?  
MR. FENTON:  Yes, Your Honor.  My understanding is 
that issue has been resolved. 
THE COURT:  That's what I thought.  Okay.  I was 
thinking of time limits, because I think time limits have a 
good effect on keeping the trial moving.  I do like to keep 
things going and not to the detriment of allowing the parties 
to present their case, but I don't like to waste the Court's 
time or mostly the jury's time.  
So with regard to a lot of the witnesses on Friday, 
we went through the narrative of most of the witnesses.  I 
think I could tell from the narrative that vast majority of 
the witnesses were relatively short.  I mean, they were some 
from the DMV who would say this or that or the other thing.  
I think those witnesses should go very quickly.  I can't 
anticipate cross-examination.  I'm only thinking of time 
limits for the government's case in chief.  I have no idea 
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which witnesses will be cross-examined or how extensively or 
what is going to happen.  
That's my initial comment.  Did you have something 
to say, Mr. Fenton?  
MR. FENTON:  Yes, Your Honor.  I would agree with 
the Court that the majority of the government's witnesses 
will be quite short.  The DMV witnesses that you posted to 
and the EDD witnesses, those are good examples.  The identity 
theft victims would be short. 
THE COURT:  What are they going to say other than 
did you apply for a loan?  No.  Did you ever give any -- tell 
anyone to apply for you?  Do you know these people or 
whatever.  I mean, you should go through it quickly. 
MR. FENTON:  We agree, Your Honor. 
THE COURT:  Don't -- you know, dress up the public 
status of some of these people.  I mean, sometimes when they 
call an officer, they -- police officer, they take him 
through all of their training and all of that stuff.  I mean, 
people know what a police officer does.  They know what the 
DMV is and so forth.  So you can assume a few things.  
MR. FENTON:  Understood, Your Honor.  
THE COURT:  And just give me a minute to make sure 
I did -- oh, timingwise, I don't know what the schedules are 
of other courts.  I begin trial at 9:00 o'clock.  Take a 
ten-minute recess in the morning, and I try to limit it to 
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ten minutes unless something unexpected happens and then one 
hour for lunch.  Go back at 1:00 o'clock until 5:00.  I'm 
going to clear my calendar Monday so we're going to have 
trial all next week.  
I don't know what to tell the jury in terms of the 
length of the trial.  It's difficult for me to assess because 
all I know now is what the government proposes to do in its 
case in chief.  I'm going to tell the jury that my best 
estimate is two weeks, maybe was a touch more or a touch 
less.  I don't know.  I have to give them some idea.  
I try to work hard along with you, so you can 
depend on me to be punctual.  If I'm not, it would be 
extraordinary.  
That's all I have.  Anything else?  
MR. RAHM:  Couple housekeeping matters, Your Honor. 
THE COURT:  Yes. 
MR. RAHM:  Will each defendant be afforded eight 
peremptory strikes?  
THE COURT:  Each defendant?  
MR. RAHM:  Approximately -- 
THE COURT:  The rule says ten for the defense.  Six 
for the government.  That's what I intend to do.  
MR. RAHM:  Is that per defendant, Your Honor?  
THE COURT:  Total. 
MR. RAHM:  Total?  
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THE COURT:  Yes. 
MR. RAHM:  There will likely be four defendants at 
trial.  
THE COURT:  That's all right.  We've done cases 
with five, six defendants.  That has been approved.  So that 
is what the rule says.  That's the rule that will be 
followed.  We're going to have 16 -- I'm going to call four 
alternates to make sure we have some backup.  I'll give each 
party another challenge for the alternates. 
MR. LITTRELL:  Your Honor, may I just speak on that 
very briefly?  
THE COURT:  Yes. 
MR. LITTRELL:  Rule 24 gives this Court discretion 
to grant more -- 
THE COURT:  I know I have discretion.  
MR. LITTRELL:  I ask the Court the Court grant a 
few more.  There's a few reasons.  I do think this will be a 
trial where jurors have strong feelings about being here 
generally -- 
THE COURT:  But those will be for cause challenges.  
I mean, if there is a basis for a cause challenge, I'm going 
to rule on it.  What I intend to do is first ask questions of 
the -- this may be a little different because there will be a 
large number of jurors.  So generally what I do is I ask the 
panel as a whole some questions.  Then 12 jurors are seated.  
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I get into more personal type questions with them.  I may 
have to alter that and just do everything at the -- with the 
12 in the box.  I think -- this is sort of an unknown.  I 
don't know how people are going to respond to jury duty with 
the pandemic.  
I mean, whether more people -- you know, jurors -- 
some jurors have a tendency to try to find a way not to 
serve.  It may be easier for them now.  They have some cover, 
but we'll see.  I don't know.  And certainly, I'm going to 
probe and not just go through the paces.  If you feel 
necessary to follow-up on something, you can ask me to.  
That's something that happens sometimes hopefully not 
frequently.  If there is something about a juror's answer 
that you think requires a follow-up question, you can 
approach and ask me to do that.  
MR. LITTRELL:  I think the concern is this:  I 
think jurors will admit to having feelings about being here 
both because of the subject matter of the case and because of 
the pandemic, but I think if the Court asked them if they can 
be fair and set those feelings aside, many will say yes.  I 
think they mean for that to true.  That does not change the 
fact that they still have bias.  So the bias that doesn't 
rise to the level of warranting to a cause challenge is what 
I'm worried about.  I think this case presents a 
particular -- 
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THE COURT:  I don't think I see anything, frankly, 
unusual about this case.  I mean, I know it's been hard 
fought so far and it will continue to be, I know.  You know, 
it's -- these kinds of allegations are unfortunately or 
fortunately commonplace.  That's why we have trials.  I mean, 
it doesn't seem like an unusual case to me.  
MR. LITTRELL:  I think this will -- maybe this is 
not unusual.  I expect the government to show lots of images 
of cash and jewels and gold and -- 
THE COURT:  Well, let's find out.  
Does the government intend to show pictures of cash 
and gold and other things?  
MS. AHN:  Your Honor -- 
THE COURT:  Who are you?  Would you identify 
yourself.  
MS. AHN:  Catherine Ahn on behalf of the 
United States. 
THE COURT:  Yes.  
MS. AHN:  There were gold coins and jewelry and 
watches that were seized from defendant Richard Ayvazyan and 
Marietta Terabelian's home, which is consistent with the 
tracing records and is at issue both in the trial and the 
criminal forfeiture, Your Honor.  The government will be 
showing those exhibits on the document camera, as they will 
be brought in physically.  As -- 
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THE COURT:  Well, is it -- regarding -- that is 
something else I wanted to talk about.  Thank you for 
bringing that up.  Regarding the forfeiture counts, would it 
be appropriate to wait until the jury returns a verdict?  If 
the jury acquits these defendants, then we never reach 
forfeiture.  So maybe the solution is to not show all of the 
pictures and wait to see what happens.  Maybe you won't have 
that opportunity.  
MS. AHN:  Well, Your Honor, you are correct.  
Forfeiture is not at issue until after the jury returns its 
verdict.  The government is also alleging money laundering 
and conspiracy counts.  Some of its proof relates to the 
movement of money -- 
THE COURT:  Why the pictures?  Doesn't the jury 
know what a watch looks like or gold coins?  
MS. AHN:  Yes, Your Honor.  
THE COURT:  Why that?  I don't like that approach.  
You know, sometimes the government does that.  You know, 
there's an old expression from a Texas judge -- heaven knows 
I'm not from Texas.  He said, "You dance with dem that brung 
ya."  You dance with the evidence you have.  We don't need 
pictures, and this is not show-and-tell.  
MS. AHN:  Yes, Your Honor. 
THE COURT:  I'm glad it was raised.  Is there 
something else here?  
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MR. LITTRELL:  One more thing.  The other thing I'm 
concerned about is I think the government intends to call a 
witness to talk about the purpose of the SBA loan program. 
THE COURT:  Let me -- well, I mean, generally, I 
think, you know, the -- they have a right to describe the 
program in the most general way, but certainly no witness 
from the SBA or the -- who is the EIDL?  What agency is that?  
Is that SBA also?  
MS. AHN:  Yes, Your Honor, both -- 
THE COURT:  SBA.  The -- the witnesses should 
describe the program in a neutral way.  This is the program 
set up during the COVID crisis to provide loans to small 
business for these purposes and that's it.  Not, you know -- 
another thing.  I don't want the government saying in opening 
statement anything about this case being about, you know, the 
laudatory purposes of the loan program.  That is something 
politicians decided upon.  It is the program, whether it's 
good, bad, or indifferent.  
Tell your witnesses not to use the opportunity to 
color anything more than this is the way the program is; this 
is the kind of information that is required; this is the 
proper use of the funds, and the program relies on accurate 
information.  That's it.
MS. WIRSCHING:  Your Honor, may I be briefly heard?  
THE COURT:  Yes.  What is your name?  
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MS. WIRSCHING:  Jennifer Wirsching for Artur 
Ayvazyan, Your Honor. 
THE COURT:  Yes.  
MS. WIRSCHING:  About the recent ruling about not 
displaying photos of items from Ms. Terabelian and 
Mr. Richard Ayvazyan's home.  It's our understanding that the 
government also seeks to introduce many photographs of items 
found in the Weddington home, the home of my client and Ms. 
Dadyan.  Those are items that Your Honor ruled were able to 
come in as inextricably intertwined.  We would note to the -- 
THE COURT:  Are those the identification cards?  
MS. WIRSCHING:  Things that are not related as 
checks, documents.  Things of that nature.  
THE COURT:  Well, I feel a little differently about 
that.  I think the government can show the jury pictures of 
some of these things because they're not as self-evident.  I 
mean, people know what a watch is or a house.  I remember in 
one of the charts, the government actually put a picture of a 
house in the chart.  I ordered that removed.  
I mean, to some extent, I'm going let the 
government do that.  If it becomes repetitive or excessive or 
duplicative, I'll make the appropriate rulings.
MS. WIRSCHING:  Thank you, Your Honor. 
MR. RAHM:  Similar question, Your Honor, with 
respect to opening statement.  If the government will be 
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using a powerpoint.  If they have any images or photos in the 
powerpoint presentation?  
THE COURT:  That's a fair question.  
MR. RAM:  We've not seen that yet. 
THE COURT:  Does the government intend to use a 
PowerPoint?  
MS. AHN:  No, Your Honor. 
THE COURT:  I'm glad you're not using that.  I 
don't know where that came to be so popular, but lawyers 
function on language.  You know, PowerPoints, I think they're 
kind of corporate boardroom stuff.  Everybody uses them, so I 
guess maybe they're good.  I don't know.  You're not going to 
use it?  
MS. AHN:  No, Your Honor. 
MR. RAHM:  Your Honor, I can't remember if your 
preference is to send the indictment back for jury 
deliberations?  
THE COURT:  I probably will because -- well, it 
depends.  There's a lot of counts.  It depends on whether 
there's some way to prepare a verdict form which enables the 
jury to identify evidence that relates to a count.  We don't 
have to address that right now. 
MR. RAHM:  Okay.  If I -- if you'll entertain a 
quick suggestion.  We have no objection to the indictment 
going to the jury in lieu of a detailed verdict form.  We can 
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deal with that later. 
THE COURT:  All right.  
MR. RAHM:  I would ask that the forfeiture counts 
or allegations be redacted out of the trial indictment. 
THE COURT:  We're not there yet.  
MR. RAHM:  Yeah. 
THE COURT:  Maybe -- okay.  Go ahead.  Would you 
identify yourself.  I'm going to wear my glasses tomorrow.  I 
didn't realize how long this courtroom is.  
MR. JOHNSON:  Peter Johnson on behalf of Vahe 
Dadyan.  Your Honor issued an order regarding the 
inextricably intertwined evidence over the weekend.  We 
joined the opposition to that because Mr. Vahe Dadyan is not 
related to any of that.  We asked for a limiting instruction.  
The Court's order did not include any limiting instruction. 
THE COURT:  Why don't you propose one for me, and 
I'll consider it. 
MS. AHN:  Your Honor, this was addressed in the 
government's reply to the opposition to the motion in limine.  
I'm happy to provide a copy.  Essentially, the government's 
argument is that Mr. Dadyan was a participant in the scheme 
and in the conspiracy. 
THE COURT:  I'm having trouble hearing you, Ms. 
Ahn.  Can you -- where is the microphone?  Maybe the 
microphone is too tall for you.
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MS. AHN:  I am a petite person, Your Honor. 
THE COURT:  Now I can hear you better.
MS. AHN:  The government addressed this issue in 
its reply in support of its motion in limine Number 2, 
Your Honor.  Essentially, the government's argument is that 
the defendant was part of the scheme in the conspiracy and 
knowingly participated.  Therefore, evidence of the scheme 
and the conspiracy can be brought in against him. 
THE COURT:  I understand.  Okay.  That's as much as 
I can do.  I'm sure as hard as the lawyers and the parties 
and the Court has tried to anticipate, no trial ensues 
without things that come up suddenly.  Hopefully not too 
many.  We'll have to adjust as things go.  
So I'm looking forward to the trial.  The lawyers 
have definitely shown that they know what they're doing in 
the pretrial matters.  I hope we have a smooth trial.  
MS. AHN:  Your Honor, if I may -- oh --
THE COURT:  Yes. 
MR. FENTON:  Your Honor, one more housekeeping 
matter.  
THE COURT:  Would you take the lectern.  
MR. FENTON:  Sure.  One more housekeeping matter, 
Your Honor.  There is an agreed upon motion for a 502(d) 
stipulation that would allow the filter team in this case to 
share the potentially privileged material that was 
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withheld -- 
THE COURT:  That stipulation; right?  
MR. FENTON:  Yes. 
THE COURT:  I just noticed that over the lunch 
hour.  I'll approve it. 
MR. FENTON:  Thank you, Your Honor.
MS. AHN:  Your Honor, just one more item.  In a 
previous pretrial conference, Your Honor noted that the 
government could read the -- a portion of the indictment 
which we filed for the Court -- 
THE COURT:  Oh, yes.  Okay.  Sorry.  Thank you for 
reminding me.  I don't want you to read the entire 
indictment.  You can read the conspiracy count, the wire 
fraud, just the part of the count that describes whatever you 
think was a violation, and the money laundering conspiracy.  
No -- maybe one or two overt acts.  Not every count.  I mean, 
there are a lot of counts.  So just read those counts.
MS. AHN:  Yes, Your Honor.  I believe Your Honor 
provided a very similar instructions in the previous pretrial 
conference.  The government, at defendant's request, filed a 
proposed reading indictment.  We were just wondering when the 
Court would like that to be read?  
THE COURT:  You know, I have to -- I don't have 
that in mind.  I have to go back and look at it.  I will.  
MS. AHN:  Yes, Your Honor. 
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MR. LITTRELL:  Your Honor, on that topic.  I 
haven't seen this proposed indictment.  One thing we object 
to across the board is using AKAs to describe the defendants.  
So in the captions the defendants are listed, for example, as 
Marietta Terabelian, aka Viktoria Kauichko.  So we would 
object to the government ever using an aka to describe 
Ms. Terabelian. 
THE COURT:  I think in this case that's a valid 
objection.  I mean, in other cases, you know, where someone 
in a drug case, for example, has an aka, that is permissible, 
but here one of the issues, at least as the Court has been 
informed, will be whether this Kauichko or Zhadko or whoever 
is really a pseudonym for one of the defendants.  
So I think by using that aka, you may be arguing or 
suggesting.  That's impermissible.
MS. AHN:  Yes, Your Honor.  We're fine with that.  
In our proposed verdict form, consistent with Mr. Littrell's 
request, we actually removed the aka. 
THE COURT:  Let's wait for the verdict form.
MS. AHN:  Yes, Your Honor. 
THE COURT:  We've got a while to go. 
MS. AHN:  Yes, Your Honor. 
MR. RAHM:  Your Honor, one more issue?  
THE COURT:  Yes. 
MR. RAHM:  The defense would like to call two 
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witnesses in their case that are either part of a government 
task force or federal agents.  The first was raised at the 
last hearing Justin Palmerton, the lead case agent.  The 
government said they'd make him available.  By omission, we 
failed to acknowledge to the Court.  We also asked for a 
second Detective Lyle Barns who was part of the search 
warrants executed in this case. 
THE COURT:  Detective?  
MR. RAHM:  Yes, Your Honor. 
THE COURT:  With the Los Angeles Police Department?  
MR. RAHM:  Yes, Your Honor. 
THE COURT:  I see.  Will he be available?  
MS. AHN:  Your Honor, we agreed to provide the 
subpoena to LAPD.  We reserve -- we don't know whether or not 
LAPD has any objections to it.  We agreed to provide the 
subpoena to LAPD to make them aware of the defendant's 
request. 
THE COURT:  So I mean, is that person served?  
That's the important question.
MS. AHN:  We have -- we will provide the subpoena 
to Officer Barns. 
THE COURT:  That's all that is required now; right?  
MR. RAHM:  Yes, Your Honor.  The scope of testimony 
can be discussed later. 
MS. AHN:  We may file a 403 motion as to Detective 
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Barns, Your Honor. 
THE COURT:  I didn't hear what you said.
MS. AHN:  We may file a 403 motion as to Detective 
Barns. 
THE COURT:  Okay. 
MR. RAHM:  Thank you, Your Honor. 
THE COURT:  Then I think we've done as much as we 
can.  Thank you for your participation.  
MS. AHN:  Thank you, Your Honor. 
THE COURT:  The pretrial conference is over. 
(Proceedings concluded at 2:33 p.m.) 
CERTIFICATE
I HEREBY CERTIFY THAT THE FOREGOING IS A TRUE AND CORRECT 
TRANSCRIPT OF THE STENOGRAPHICALLY RECORDED PROCEEDINGS IN 
THE ABOVE MATTER.
FEES CHARGED FOR THIS TRANSCRIPT, LESS ANY CIRCUIT FEE 
REDUCTION AND/OR DEPOSIT, ARE IN CONFORMANCE WITH THE 
REGULATIONS OF THE JUDICIAL CONFERENCE OF THE UNITED STATES.  
/s/ Miriam V. Baird 
02/15/2022
MIRIAM V. BAIRD
DATE
OFFICIAL REPORTER
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