T R A N S C R I P T
INTERVIEW OF DAVESMITH BY VENTURA COUNTY DEPUTY DISTRICT ATTORNEY JOHNJONESAND VENTURA COUNTY SHERIFF'S DETECTIVE BOBWILSON ON JANUARY 14, 2010. RE: PEOPLE v. JAMESWOODS.
DS =DaveSmith
JJ =JohnJones
BW =BobWilson
JJ:All right. It is uh, 1:30 pm on January 14, 2010. My name's JohnJones. I'm with the Ventura County D.A.'s Office. Um, I'm sitting here with Detective Wilson from East Valley Sheriff's Department, and uh, Mr. Smith. Uh,DaveSmith, is that correct?
DS:Yes.
JJ:And Mr. Smith uh, you filed a real estate fraud complaint with the D.A.'s office um, on or about May 14, 2009. Is that correct, sir?
DS:Yes.
JJ:All right. Well the reason that we're meeting today is for you to give us a statement, um, uh --an oral statement over and above which you gave us in your written statement that you submitted with the fraud complaint. And -- and we appreciate you comin' in today. Um, what we're gonna do is we're just gonna ask you to start from the beginning. Uh, I'm gonna ask you -- like we talked about before we went on the, um -- on the record here so to speak,for transcription purposes. But just tell us the truth. Um, I know you will. Just do the best you can to -- to remember the events. I know it's been a couple of years. Um, and um, we're gonna just -- th--the detective may interject with questions and I may, you know, in-- in-- interject with questions from time to time. But um, we're gonna take your statement with respect to uh, the circumstances surrounding this fraud complaint. And just for the record uh, this is on case number 2009019699. Um, defendants listed are JamesWoods uh, JenniferStewart, doing business as XYZ Advisors uh, also a d/b/a of ABC Development and a d/b/a of MNO Enterprises. Okay. Mr. Smith um, when did you first hear about JamesWoods?
DS:Right -- at the first of the year of uh, 2006. Probably January or December of 2005, right in there.
JJ:Okay. And uh, who introduced you to him?
DS:Uh, John Henderson.
JJ:Okay. And John Henderson is who?
DS:John Henderson was our broker.
JJ:Like a stock --
DS:A stockbroker.
JJ:A stockbroker. All right. And where did you meet um, Mr. Woods for the first time?
DS:In uh, John's office.
JJ:And where was that, sir?
DS:In Thousand Oaks, uh -- I don't recall the address.
JJ:Was it off Westlake Boulevard?
DS:Yes. Westlake and, uh -- and uh, Thousand Oaks Boulevard, in that area.
JJ:Mm-hm. All right. With your wri-- with your fraud complaint, you um, uh -- actually I -- I received some materials from your civil attorney, Mr. Doherty. One of those materials was a -- was a profile on John Henderson and it listed an address on the bottom of, uh -- of this profile, 4530 East Thousand Oaks Boulevard uh, second floor of Westlake Village, 91362. Does that sound about right?
DS:Yes, yes.
JJ:Is that where you think you met Mr. Woods the first time?
DS:That is where --
JJ:Okay. And that's in Ventura County. Um, all right. So, what, um -- and -- at some point did you decide to invest money uh, it -- with Mr. Woods?
DS:Yes.
JJ:Okay. Can you tell us a little bit about that? How did you come to invest money with Mr. Woods?
DS:Well um, we uh -- our daughter asked us if we could help them to buy a house up in Napa. And we had a uh, credit line for $180,000, and they needed about $200,000. So we -- we uh, asked John if he could introduce us to someone who -- or would -- knew someone who could help us with that.
JJ:Okay.
DS:And uh -- and uh, he -- he did. And he -- and so -- well that's how we met JamesWoods.
JJ:All right. Now did Mr. Woods advise you to refinance your home?
DS:Yes.
JJ:Okay. An-- and you did that?
DS:Yes.
JJ:Okay. And so what exactly did you do? Do you remember the -- some -- some details about that?
DS:Well we -- we uh, started callin' -- i-- it was -- we took out a loan for a total of uh, $380,000, which was the $200,000 to our daughter and the $180,000 to pay off the credit line we had.
JJ:Mm-hm. All right. So um, did Mr. Woods uh, advise you or encourage you to take out any other credit?
DS:Yes, he uh -- uh, set up uh, a loan with Washington Mutual at the -- well Washington Mutual at the time.
JJ:Mm-hm.
DS:And for $250,000.
JJ:And was -- did you do that based on his advice or --
DS:Yes.
JJ:-- or tell us about that.
DS:Absolutely, yeah.
JJ:All right. All right, so um --
BW:What kind of loan was that with Washington Mu--Mutual for 250,000?
DS:It's a --
BW:Did you ever --
DS:It's uh, a 30-year uh, 8.09% loan.
JJ:And did -- did Mr. Woods make any representations to you about this money. You know, about why you should take it out or did he say anything to you, if anything, about that?
DS:Well it -- the idea, uh -- it's kind of convoluted but the idea was to -- to pay -- pay down the loan with cu-- with uh -- with uh, on the house; the first. And the second was to pay down the loan on the first. And um, the way it was explained to -- this would all uh, work out that over -- over time with the appreciation of their property, uh our --
JJ:Who's their, your daughter's?
DS:-- our daughter's and son-in-law's property. Um, uh, that uh -- that this -- this would work out but that this loan would help us pay the se-- the first loan. The, uh -- the -- the first loan on our home. And then -- and it -- and this was set up for a three-year period.
JJ:Mm-hm.
DS:That our daughter and son-in-law then would pay us back after they refinanced their home because --
JJ:Based on the fact that it would appreciate?
DS:Yes. And then they would of course uh, remodel the place.
JJ:Okay. Wha-- what was the timing on this, sir? When -- when was this all taking place?
DS:This all took place in January or February 2006.
JJ:All right.
DS:And, uh -- let's see. At some point did you, um -- did Mr. Woods tell you -- did he make any representations to you or advise you on how to invest the money you took out on this? You -- you took out a 30-year, uh -- it -- it was a line of credit? Or it's a --
DS:No, it was a loan.
JJ:It was a loan -- it was a loan. Okay.
DS:A second.
JJ:But the -- then that effected that -- to that effect is that you had 250,000 in cash now?
DS:Yes.
JJ:All right. So, did Mr. Woods make any suggestions to you about that $250,000?
DS:Not at -- not at the time, but it was made.
JJ:Okay. You -- at some point did he make some representations to you?
DS:Yes.
JJ:What did he tell you?
DS:Well, he wanted to borrow uh, $80,000 uh, from us to in-- for -- for investment purposes --
JJ:Okay.
DS:-- for him. And then he was gonna pay us back. That, plus 12% in six months.
JJ:All right. And did -- do you remember whether or not Mr. Woods was operating a business under any d/b/a's or doing business as --
DS:I don't know that he was.
JJ:All right. And did you decide to invest that 80,000 with Mr. Woods?
DS:Yes.
JJ:Okay. When about, uh -- when approximately was that, sir?
DS:February, March, somewhere in there of 2006.
JJ:All right.
BW:So that was right at -- almost --
DS:Right after --
BW:-- right after you (UNINTELLIGIBLE).
DS:Right -- right after, yeah. After it was all -- all done, then he -- he talked to us about it.
BW:He approached youabout it?
DS:Right.
JJ:When you say it was all done, what are you talking about, sir?
DS:Well the loans were made.
JJ:All right. So you loan out $80,000?
DS:Yes.
JJ:H-- how was the $80,000 broken down, if at all?
DS:Well it was two checks for $40,000.
JJ:Okay. And -- and six months went by, did you get your money back?
DS:Not immediately. Uh, two, three weeks, four weeks, something like that after. I -- I called him a couple of times to find out what was going on.
JJ:Mm-hm.
DS:And then -- then we were, uh -- within -- within less than a month's time we were paid.
JJ:All right.
DS:Or seven months.
BW:Were those two $40,000 checks made payable to uh, JamesWoods?
DS:I don't recall.
JJ:All right. Do you, uh -- would you be able to get --
DS:I --
JJ:Would you be able to get copies of those checks if we asked you to?
DS:Probably. It was a real difficult chore to get the other ones from Washington Mutual. But probably could --
BW:Who did he give those checks to?
DS:Who did he give them to?
BW:No, who did you give them to?
DS:Oh, I gave them to him -- handed it to him.
BW:Okay. So you -- but --
JJ:Him -- him being who?
DS:JamesWoods.
JJ:All right. And I know it's like we're beating you to death --
DS:No, I -- I --
JJ:-- here, sir. But when you say him, he, she, we're gonna ask you who you're talking about.
DS:Sure, yeah. Yeah.
JJ:Okay. So you gave you two $40,000 checks to Mr. Woods.
DS:Yes.
JJ:And where did you give those checks to him at, sir?
DS:Uh, either in the offices of Washington Mutual, which is right near their office. They're on uh, Thousand Oaks Boulevard and Westlake.
JJ:Mm-hm.
DS:Or in his parking lot at his office. I don't recall which, but --
JJ:Was there anyone with you when you gave him the checks?
BW:The $40,000 checks to him?
DS:I don't recall if there was.
JJ:All right. All right. So what, six months goes by?
DS:Yes.
JJ:And you don't get paid back immediately.
DS:That's right.
JJ:All right. So then do you -- were you concerned, were you worried?
DS:Yes.
JJ:You were. So what did you do?
DS:Well, I wasn't really worried, but I had called James a couple of times and -- and he assured me that there was just a little delay.
JJ:Okay.
DS:And it turned out that that was the case.
JJ:All right. And um, did you ever deal with anyone i-- in the context of this $80,000 investment, did you ever deal with anyone else besides Mr. Woods?
DS:No.
JJ:Okay never -- did you ever deal with a lady namedJenniferStewart?
DS:Oh, yes.
JJ:Okay.
DS:Yes. JenniferStewart was -- was his associate. And uh, I don't think she was his wife, but she was -- it was a -- it was a type of arrangement.
JJ:Did it appear to be a romantic relationship?
DS:Oh absolutely, yes.
JJ:What makes you say that?
DS:Well they were living together as man and wife, as far as I know anyway.
JJ:How'd y-- well how'd you know that?
DS:Oh, just conversations. She was quite friendly and outgoing andas James was, too.
JJ:Okay. And did -- were James and Jennifer affectionate with one another in front you?
DS:Normal man and wife behavior.
JJ:All right. Well that can mean a lot of things.
DS:Yeah, right -- right (UNINTELLIGIBLE).
JJ:It can range from -- from a hug and kiss to uh, s-- to domestic violence. So, what do you mean?
DS:Well -- well, no. They -- yeah, they were friendly -- they were friendly. They were --
JJ:Yeah, right.
BW:So -- so you knew of her at the time? (UNINTELLIGIBLE) --
DS:Oh absolutely, she was there.
BW:-- in 2000?
DS:She was at -- at the -- our initial meeting.
BW:The very first time you met JamesWoods?
DS:Yes. Yes. Oh yeah, they were associates.
JJ:Did -- did Ms. Stewart, uh -- did ma-- did she make any statements about -- about whether or not you should take out an equity line in your home?
DS:Uh, no, I don't -- I don't believe so. She was there, but she -- well James was mostly the one who was uh, running the show.
JJ:All right. So, uh, we were -- we were talking about this, uh -- this $80,000 investment. You said about six months went by; you didn't get paid back. You started to call Mr. Woods.
DS:Mm-hm.
JJ:Is that correct?
DS:Mm-hm.
JJ:Okay. At some point did you get paid back?
DS:Yes.
JJ:Were you concerned that you weren't gonna get your money back?
DS:No, not really. There was noth-- no reason to be.
JJ:All right.
BW:Do you remember when you got paid back?
DS:It's written down somewhere. But I think it was probably -- let's see, it would've been due probably in August, so probably September of uh, 2006. Because that's -- that September, October is when we -- then when it -- it was the later one. The later --
JJ:We're -- and -- and we're gonna get to that. You mean - when you mean later when you made another investment?
DS:The -- yes.
JJ:Okay, we're gonna get to that, sir.
DS:Okay.
JJ:Before I forget um, the refi-- the refinance on your house um, did you say that Mr. Woods advised you to do that?
DS:Yes.
JJ:And did he handle the transaction?
DS:Yes.
JJ:All right. Do you have paperwork that shows that he handled the transaction? Not with you today, but do you have it somewhere?
DS:Yeah. You know, I don't know. I have the loan papers.
JJ:Okay.
DS:You know, but I --
JJ:Wou-- would it -- could I -- could I ask you to get those loan papers for the detective?
DS:Yes.
JJ:Okay. After our meeting today?
DS:Uh-huh.
JJ:Okay. Um, do you know whether or not Mr. Woods earned a commission on re-- handling the refinancing?
DS:I have no idea.
JJ:All right. Okay. All right. And then we'll need the checks on the $80,000 investment if you don't mind.
DS:No, I -- I -- no. I will have to --
JJ:I know.
DS:Yeah.
JJ:I know -- I know it's gonna take some time. Okay. So uh, you got the $80,000 back with interest. Correct?
DS:Yes.
JJ:Now after that, um -- after that transaction, did Mr. Woods ever approach you again and ask you to invest more money?
DS:Yes.
JJ:Okay. Where did that take place? Where did he approach you? Was it on the phone, was it in person, do you remember?
DS:I don't really remember, but possibly --
JJ:Well that --
DS:Okay.
JJ:I -- I don't mean to be rude --
DS:Yes.
JJ:-- but not possibly.
DS:Okay.
JJ:Do you know or do you --
DS:No, I don't know.
JJ:You don't know.
DS:No.
JJ:Okay. Well at some point, did Mr. Woods approach you and ask you --
DS:Yes.
JJ:-- to invest money? Um, did -- was MissStewart present when that -- when he approached you at that time? Do you remember if she was there?
DS:I don't recall that she was.
JJ:All right. So as best as you can remember, she wasn't there?
DS:No.
JJ:Okay. Um, do you remember approximately uh, when sir, he approached you for the second time and asked you to invest money? And I'm referring to Mr. Woods.
DS:Well, it could've been right away. It could've been within a week or two after the repayment of the uh, 80,000.
JJ:All right. Uh, specifically uh, what, if anything, did he ask you to invest?
DS:Well uh, uh, he -- I don't remember exactly what he said but we ended up uh, having checks made out from Washington Mutual for $50,000 and $72,000 to two different um, um, accounts or --
JJ:Two different payees?
DS:Yes.
JJ:Okay. Do you remember the names of the -- of the payees?
DS:Uh, it's, um -- I believe -- I believe one was ABC.
JJ:Okay.
DS:I believe, yeah. I believe the other one was something like R-- RGK or something like that.
JJ:Okay.
DS:RGK uh, Limited or --
JJ:Okay. Okay, um, the -- the detective is showing you what appear to be photocopies of the checks.
DS:Yes.
JJ:Did you recognize those, sir?
DS:Yes.
JJ:All right. And uh, on the lower left-hand corner of the check it says pay to the order of, can you read that there? I know it's difficult.
DS:Oh boy. Something -- I -- I don't know if that's R-- RGK Enterprises or -- oh I probably have a better copy.
BW:It looks like MNO.
DS:MNO, okay. So you have -- or your eyes are a lot better than mine. Yeah, MNO Enterprises.
JJ:All right. And MNO, is that -- is that appear to be correct? And that's who -- and that's who you wrote the check to?
DS:Yes.
JJ:All right, over the -- this is a cashier's check. Right?
DS:For -- for uh, $72,000.
JJ:Right. And is there -- is there a check number on that cashier's check?
DS:It's uh, 781091404.
JJ:Okay. And then uh, turning the page, it appears to be a photocopy of another cashier's check. And before we move on this check detective, what was the date on the first check for 72 grand? Can you see it?
BW:Uh, it was stamped -- i-- it -- there's a stamp on there, September 14, 2006. It looks like a --
DS:Mm-hm.
BW:-- a stamp that a teller would stamp at the time your uh, check is being cashed.
JJ:Okay. All right. Now going on to the -- to the second check. You said you wrote him two checks; one for 72,000 --
DS:Yes.
JJ:-- and one for 50?
DS:Yes.
JJ:All right. Um, Detective Wilson is showing you a photocopy of --
DS:Yes.
JJ:-- what appears to be an official check --
DS:Mm-hm.
JJ:-- a cashier's check for 50,000. You see that?
DS:Mm-hm.
JJ:All right. And --
DS:Okay.
JJ:-- that’s um --
DS:I think that says ABC. I believe that's what that says.
BW:Yeah. That's --
DS:-- Development -- ABC Development.
JJ:That's who it's made payable to?
DS:Yes.
JJ:All right. And that's for 50,000?
DS:Yes.
JJ:And is there -- is there a check number on that?
DS:There is, 781091403.
JJ:All right. So, they appear to be sequential; one has 403, one has 404.
DS:Yeah. And those were of course written by the bank.
JJ:Right. Uh, yeah, exactly. And uh, these checks uh, did -- w--were these monies that you invested with Mr. Woods?
DS:Yes.
JJ:Did you give the -- did you give Mr. Woods these checks?
DS:Yes.
JJ:All right.
BW:Did you give him both the checks?
JJ:Yes.
BW:At the same time?
DS:Yes.
JJ:Do you remember where you gave 'em to him?
DS:I think it was in the bank.
BW:In Westlake Village?
DS:Yes.
BW:All right. At the Washington Mutual --
DS:Yes.
BW:Yeah. All right.
DS:I believe it was at -- we were walking out of the -- out of the bank.
JJ:Okay. Did, uh -- can you tell us about that? Did Mr. Woods meet you at the -- did -- did he tell you meet him at a certain place or how did you know to go to Washington Mutual?
DS:We -- I -- I -- we met at his office --
JJ:Okay.
DS:-- which is not far from there.
JJ:And then you went to the bank together?
DS:Yes, yes.
JJ:Did you guys go in the same car?
DS:I don't think so because I believe we went out to lunch. And I believe that -- that JenniferStewart met us there, and we all went out to lunch after that. I believe that the three (UNINTELLIGIBLE) --
BW:The three of you?
DS:I believe so. We -- we did at one time and I think that was the time that we did that.
JJ:Okay. Was JenniferStewart with you when you gave -- was JenniferStewart present when you handed the two checks --
DS:I think she --