Dr Gary Michelson's bizarre testimony today - Forbes billionaire crazy

During the entire time that I've known Gary Michelson I have always found him to be bizarre. I used to consider him just eccentric but now I know better. Today he took his bizarre to a whole new level. He truly lives in his own reality which he created out of thin air. My comments are in parenthesis.

I missed the first half but was caught up. The Judge had a meeting with Gary Michelson's attorney Luke Dauchot and the other lawyers in chambers on the record. Then the Judge spoke in chambers ex party with Luke Dauchot off the record for three minutes or so.

Part of the audio of the interview with Gary Michelson and Villasenor was played. Gary Michelson admitted he had a meeting with DA Steve Cooley. Gary stated he sold most of the property recently for $32M. (some believe he probably sold it to a straw person to try to make it appear it was not worth as much) Previously he stated there were no appraisals. Then he stated there was an appraisal for $100M by Martine a teak expert whom he hired. Gary paid apx $25M for the land. In mediation P offered him $40M but Gary refused. His original claim stated he lost $5M. Person in charge of his farms after P appraised land at $100M. (Obviously Gary made money and didn't lose any).

1:30 N's attorney Johnathan Michelson (JM) had Gary on the stand. He questions him about when Gary knew something was wrong.( This deals with statute of limitations. Getting straight answers out of Gary was like pulling teeth today. He also had some truly bizarre responses. Gary's lawyer was not there after 12.)

JM questioned Gary about his previous sworn statements which show Gary was concerned something was wrong beginning of 2005 and end of 2005. (You have 3 years from the fraud or discovery of the fraud to file a civil suit. For a criminal prosecution, the statute of limitations for a felony fraud is 4 years. This case should be thrown out based on statute of limitations alone. I think Gary filed the criminal complaint in CR 2007, one here March 2012 or seven years later. Gary sued P in CA civil court in 2007. Why did he wait so long to file the criminal complaint? Probably because he had no yet schmoozed DA Steve Cooley and LAPD knows he's crazy. Gary donated to Cooley in 2010 and his replacement in 2012).

2005 Gary asked for records for land sales, expenses from P. Supposedly P gave him one excuse after another. 2005 David Cohen thought something was wrong. Gary said he, Gary did not think so. He goes back and forth with this. (He forgets yesterday he said Cohen took over all business for him in 2005 because Gary admitted he was a bad business man.)

March 26, 2006 Gary went to CR to meet with Martine who had taken over running his farms. At that time he realized that P was taking multiple commissions on the sales. (Yesterday Gary said he never went to CR. Today we find out he was there three times)

Gary bought 147 properties in all. Gary got a $24M judgement against N. Gary stated "I didn't get a penny from N!" JM asked him if Gary got $2M from the forced sale of N's home. Gary says "no!" (Everyone is confused by his answer. Gary got a judgment, sued N in Florida and forced the sale of his home. I posted all the docs here previously.) Gary continues "I didn't get a penny!" JM again asks "didn't you or one of your holding companies get money from the sale of N's home?" Gary said "that was my home! It was MY house!" JM asks "did you live in it, ever go there, did you buy it?" Gary says "no."(It was N's home. In Gary's odd mind he feels that because N used some money he got from Gary to buy the home that he Gary actually owned it. N had money from the sale of his Dana Point home.) JM says "let's not be cute here" to which Gary replies "I'm not being cute. I take offense!" Judge tells them to knock off with personal comments. Gary ultimately admits that perhaps one of his holding companies might have received the funds from the sale. (Trying to get a direct answer was so difficult today. Gary danced around when he thought there was something wrong. If he filed a criminal complaint in CR in 2007 and admitted in that complaint he knew something was wrong in 2005, the statute of limitations are over here in CA. Gary also admits he lost no money. Case closed at least to Powers)

In Gary's CA criminal complaint he states he the victim wired $28M up to March 2006. He bought 23,000 acres. 2014 he sold 21,000 acres with trees for $32M. He still has 2,000 acres. (Obviously there is no loss here but Gary still claims he lost money. Plus, if it was appraised at $100M by Gary's own expert, why sell for $32M?)

In 2012 Gary admits he had lunch with DA Steve Cooley and the main people in the DA's office while his criminal matter was pending. Gary was invited by a secretary of Cooley to have lunch so Gary could thank them for their help in this case. Gary ended up paying for lunch. Gary admits his lawyers gave docs to DA Steve Cooley. Gary said that was the only time he'd met with Cooley. (Not true. Cooley invited him to stand next to him in a press conference. I posted pics. Gary then gave Cooley an award at a big event in his honor. I posted the event with pics. In that event Gary gave Cooley an award for something he had nothing to do with)

P said he had someone who was willing to buy Gary's land for $60M. Previously Gary said "if it's worth $80M, I'll take $60M, you P can keep the $20M and we can all go home."( Today his answer changed. If Gary had sold it then there would have been no case at all.) Gary was upset that he couldn't sell it for $120M. Gary admits he did not find the properties or improve them. P did that.

U cross examined Gary. Did you know Knowles and Villasenor were working on your case when you went to lunch with Cooley? At first Gary hemmed and hawed then he admitted that he did know because he'd met with them. U asked him why Knowles and Villasenor were not at lunch when they were the actual people working on the case? Gary said he did not know. Previously he said he had lunch with a woman, Cooley, Chief, Asst Chief, head of investigations unit at a restaurant on Sunset to thank them for their work on his, this case.

U shows him P's "consulting agreement." U asked Gary if there is a 6% commission in the consulting agreement? Gary said no. March and April 2003 you expressed concerns about P? Gary went on a little rant and U said "objection, strike, non-responsive."

U then showed Gary a letter from his lawyer Capps to Gary from 2003 about concerns Gary had with P. Judge ruled even though it's a lawyer communication which would be privileged, the DA gave it to Defendants so it's now in the public domain. (Generally this can mean that ALL attorney/client privileges are waived if the party puts a privileged communication in the public domain). In the letter Capps is concerned about purchases.

Gary again refuses to admit that C&M bought property from P. Gary insists he bought directly from seller via Neil and C&M. Obviously that is not the case.

Break. Judge says he has an important out of country appt on Friday so we need to finish by Thursday. We will start earlier, end later and shorter lunch. Start at 8:30, one hour lunch and end at 4:30.

Gary then confers in private with K. Later Gary again confers with K asking him questions. We take a break. As I go out an FBI looking buy with two full semi-auto mags on his belt walks in the court room. When we go back in that FBI guy walks out of the Judge's chambers right ahead of the judge.

Back from break. U retracts exhibit E because of an issue. 7/2006 letter P said he had a buyer for the prop for $60M minus a commission to P. Capps responded to P stating the prop is not for sale. Gary said he didn't want to sell if P was in the deal and got a commission. (What an idiot. He also said something different yesterday which I posted above) Next second Gary said he" would have sold for $60M in a heart beat." (I assume this means without P getting a commission.)

Gary said he relied on P's sense of value of the property. He said he paid what P told him to pay. Karlin Holdings is Gary who wired the money. Gary also owns GHM. C&M is Campbell and Michelson.

JM asked him why he bought the land. Gary responded "I wanted to do good in the world by planting trees. It was also a good investment. I improved the world by planting trees." (And now he's wasted a whole forest of trees in the paper involved in this silly case.)

Gary stated N came to him and said he really needed $500K as he was in big trouble. Gary offered to loan him the money but N said he'd prefer if Gary bought him out. Gary bought out N's less than .5% interest in C&M for $500K. (If it were .5% that means C&M was worth $100M.) August 2008 Gary bought out N.

Early 2005 Gary asked Munoz to find out how much the sellers were paid for their property by P. Gary found out it was a lot less. Munoz was Gary's lawyer in CR. Gary spoke with N and P who said they sometimes had to pay with cash in some odd deals where the actual sales price was not correctly listed. N and P blamed it on the sellers. Gary said he believed that explanation.

Andrea Martine got information to give to Gary January 2007. The report stated that only 27% of the land had trees planted on it. P supposedly stated that 70%+ of the land could be planted. (Maybe all the trees weren't planted yet?) Martine said only 10% of the land is good to plant teak. U objected as Gary was stating facts but Judge over ruled stating Gary is just giving his thoughts, frame of mind. His testimony is not being accepted as facts.

Lunch with Steve Cooley was August 27, 2013. This came from April 2014 email from K.

U asked Gary if he ever rejected a property P offered him. Gary said no. (this is not true). U did the math on value of N's share being $100M. Gary then said that N's shares weren't worth that much but N said he needed the money so Gary gave it to him. Originally Gary said N figured out his shares were worth $500K.

JM Is this your partnership agreement with N? (it was one page) Gary said yes but there was also another agreement. (A one page agreement? I doubt there was a fiduciary clause or anything like that in a one page agreement).

April 30, 2013 K sent an email saying lunch was at a restaurant on Sunset called Freniente? Herb Hazel, Chief, Assit chief, Captain Beemer? and woman were there. The purpose of the lunch was to thank those who worked on the case. V and K were not there. JM asked why not? Gary said he didn't know. (Gary previously donated to Cooley in 2010. Gary donated to current DA in 2012 immediately before this criminal investigation began.)

In 2005 Munoz found out the sales prices of the land. Gary said no. JM then said "you deny the criminal complaint you made in CR which says this?" Finally Gary admits what he wrote in his 2007 criminal complaint in CR. Gary tried to deny most of his sworn statements today but finally admitted the statements were true at that time. Then he admits he knew something was wrong in 2005.

JM asked Gary his net worth. K objected. (Gary as per what he tells Forbes is worth $1.5B. Forbes gets the numbers from the person. They don't verify anything. Gary also publicly stated he did very well financially in teak farms in interviews and in his website)

U, Exhibit E has a date of April 2003 and July 2003. Gary pointed it out earlier. This came from the DA. (That would mean it came from Gary's attorneys). Gary says he only recognizes the first page, not the rest and that isn't his signature. The letter is from P to Gary stating teak is a long term investment. You must hold for 20 years to realize the true gain. It says by the 5th year you will get your original investment back. After 20 years you will have $36M if you invested $9M.

4:10 pm. Gary may be recalled to the stand to answer to exhibit E. K must produce the original. J told Gary not to talk to any other witnesses in this case until end of prelim.

K said he has a forensic accountant, real estate deed expert and computer forensic expert to call as witnesses. H said he has an objection as to almost every exhibit by prosecution and one witness.

(I have a feeling K is not too happy with Gary being such a horrible witness on the stand.)

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