Gary Michelson criminal trial day two. Things start to heat up. Forbes billionaire crazy perjury

Gary Michelson criminal trial day two. Things are starting to get really good. The truth is just starting to come out. I will not reveal anything that could possibly help Gary's meritless, frivolous case. Today I will basically just post what transpired and what was said. Anyone is free to order the minutes from the court reporter. This is a public trial. I may have made mistakes here.Please, correct me if I did.

I got there at 10:40 a.m. hoping to miss the DA's slow and boring presentation of exhibits. I underestimated how long that would take. Robert Knowles was only at count, exhibit 19 when I got there. There are 50 counts.

I found out later many exhibits were not accepted by the judge. I also found out that Gary stated he had doubts about the transaction in 2004. Previously he said 2006.

DA Robert Knowles questioned Gary about count 19. We took a break then Gary changed his testimony. I can only assume this was after conferring with the DA in the hallway. Gary stated that he paid to reforest a property he did not legally own. Defendants objected as his response stated as if it were fact. Judge over ruled stating his statement would be received as merely Gary's perception of events, not facts.

Going through the counts Gary again was paying about  $1,000 an acre on most properties. I checked some comparables last night and sale prices are closer to $10,000/acre today with list prices even higher.

In Count 27 Gary said he had to give Richard Powers, power of attorney to transfer property to C&M Investments. C&M Investments is owned by Gary Michelson/Karlin Assets or something. Gary is the Manager of C&M Investments. Richard Powers has his own separate investment and holding companies.

Gary stated he retired in 2001. Previously he said he received faxes at his medical office and at home in 2002-2005. Obviously he did not receive faxes at his closed medical office if he retired in 2001.

What I did find odd today was that Gary brags online all the time how great he is doing in teak. In articles he said he did and is still doing very well. What's really odd is that Gary is bragging online in articles and in a website devoted to his private holding company. He acts as if he's a public investment company. That's like me making a website for my checking where I brag that I'm making .001% interest.

Lunch break.

DA Robert Knowles' presentation was monotonous, repetitive and was almost making me fall asleep. I realize this is an important part of any trial. I did the same with my own trial slowly methodically presenting exhibits to be hopefully accepted by the judge. Robert Knowles got lost quite a few times in the monotony.

Supposedly Pan American Wood (sp?) is the largest teak farmer in Costa Rica.

Counts 1 - 49 deal with land purchases. County 50 deals with maintenance costs. Gary contends the maintenance costs were inflated. These funds were to clear land of weeds, buy trees, plant trees, build roads, culverts. Gary paid in advance estimated maintenance costs.

Mr Muno is a lawyer for C & M Investments in Costa Rica. Bill Capps was a lawyer here in LA that would draft agreements between Neil and Gary. Steve Collette was his accountant. He was replaced by Fredelender. David Cohen became Gary's business manager in 2005. Gary said with a laugh and a smile "He would never let me do another business deal ever again. This was one deal which Cohen took over besides others."

Gary has frequently admitted that he's a shitty investor and business person. Gary has frequently admitted that he's been "taken advantage of" by others. Whether he was taken or advantage or not is to be seen. I will agree that Gary is a horrible judge of character. Gary paid the LA Mayor money to hire Ed Boks who was a total liar. Gary donated money to Daniel Guss who is a convicted criminal. I could go on and on.

Gary's relationship with Powers deteriorated after 2006. December 2006 there was to be a final resolution to the business deals. There was a conflict in that Powers did not supposedly turn over books and records in 2005. Oddly enough Gary was filing tax returns with records.

Supposedly Andreas Martin who worked for Pan American would take over C&M Investments and the day to day running of the farms. Gary decided to go to Costa Rica March 23 - 26, 2006 to view the farms. They got on a helicopter and Gary said the farms looked like "tooth pick farms." Obviously saplings, seedlings seen from a helicopter would look like a toothpick farm.

Gary said he didn't think 70% of the land was covered by trees which he said he was promised. Gary said he saw a rusty saw attached to a rusty VW engine which he was told was an expensive saw. Gary tends to really exaggerate. I've known him since 2005.

Gary admits that he was very angry at what he saw. Gary said that Powers said "I can't believe you are an ingrate. My blood, sweat and tears has made this property worth $80 million." Gary said he was told land was worth $30M and trees $50M. Gary said Neil and Powers were offended that Gary did not appreciate what they had done. Gary said they said the rusty saw was not the saw mill property.

Now to the conspiracy charge which is a new charged added last Saturday. I have no way to see the criminal complaints. Supposedly Neil defended Powers saying he, Neil sat through the negotiations. Land was bought at $1,000/acre and is now worth $1,600 acre for 60% return. Neil said he could sell them for $80M.

In May Andreas Martin took over. Martin asked for deeds. 43 deeds had not yet been transferred. Gary said Martin said the properties were in bad shape and could not be used to grow teak. Gary said that Powers said Martin was just bitter than he Powers accumulated such nice properties. I have noticed when a new person enters the field with Gary, Gary instantly turns on other people involved. Gary loved me until someone else wanted my job and they bad mouthed me. Then Gary lied about me and perjured himself in a false sworn statement.

The Judge ruled that these statements were not being admitted as facts. They were being admitted as what Gary thought was happening.

Gary then agreed to close on a few properties if Powers gave him the deeds and he did.

September 2007 Gary filed his first criminal complaint against Powers in Costa Rica. The case was dismissed. Gary refiled in March 2010 or it was reopened. Gary agreed he gave a factual statement to the Costa Rica DA.  Christina Cueros is the DA equivalent in Costa Rica. September 2007 Gary filed civil complaint against Powers in California. Later in 2008 Gary added Neil to the civil complaint. Gary did this after he spoke with Neil twice about something which came up in confidential mediation with Powers.  Powers sued Gary in Costa Rica. In that case it was stated that Neil supposedly shook down Powers for money. Neil demanded money and got $1.3M. Gary confronted Neil about this and supposedly Neil said "Powers took more than that."

The People's theory here is false representation and inducement. Gary stated that Neil "showed his consciousness of guilt." Neil supposedly said "the land was not farm land but cattle grazing. It was worthless" as it was stripped of its top soil. Neil said Powers lied and doubled the number of actual trees and maintenance costs.

Gary with a tear in his eye said and pointed at Neil "that was my best friend." Gary then supposedly told Neil "you should pay me back the money you took and testify against Powers." Neil went and spoke to an attorney. Then he supposedly said "I can't testify against Powers because I would incriminate myself. I will just keep the money." Lord only knows what was actually said. Gary tells so many stories.

Gary said at this time Neil told him he was the credit manager at a dealership near Dana Point where Neil lived.

The DA then asked Gary "If you knew Neil got money in the deal, would you have bought the properties?" Gary, "no."

DA, "did you believe Neil's motivation was to increase his share value in C&M?" Gary, "yes."

DA, "was Neil ever paid by C&M?" Gary, "no."

DA, "if you knew that Powers would make money off sales, would you have invested?" Gary, "no."

DA, "if you knew the maintenance costs would be inflated, would you have invested?" Gary, "no."

Obviously this would be stupid investing but the DA just wants to show there was fraudulent inducement because he knows he will not be able to show any evidence of any financial damages or actual fraud. If Powers got a piece of land for free or bought it for $1 then sold it to me for $1,000 when it was worth $10,000, I'd be happy as hell. I would not be pissed at him for making $999 when I just made $9,000. I'm not an idiot, or a liar unlike Gary. Gary really is a stupid business person. He should stick to stealing people's inventions and being a patent troll. It's what he's best at, really.

3:40 p.m. and finally Walter Urban gets to cross examine Gary. Urban has a hearing issue and did not hear the Judge talk a couple of times. He also has problems hearing me. I don't think the Judge realized this and thought Urban intentionally spoke over him when he didn't.

Urban asked Gary if he wrote a written statement  and gave an oral statement in this criminal complaint. Gary got confused and it took a while for him to answer. Gary also instantly was defiant and on the defensive. First Gary says "I don't recall." Up to this point Gary is proud to tell the Judge and DA that he has an excellent memory. He even shows off by naming certain rare types of trees and specific details here and there. Based on what I know Gary has as "selective" memory. Gary most certainly lied about things which transpired between him and me.

Back to testimony, Urban asked if Gary knew his interview with the Costa Rica DA was under oath and recorded. Gary finally said yes. He read the transcript and signed it. Then Gary blurts out (my criminal complaint) "was improperly dismissed by someone who got bribed." The Judge struck that statement (my spell check keeps changing the word to "stroked.")

Gary then admitted that Powers sued Gary in Costa Rica. They were in mediation. That mediation was confidential. After that mediation is when Gary spoke to Neil about what was said in that confidential mediation. Gary gets nervous and defensive.

Urban asks Gary if he ever got an appraisal of his properties. Did you ever get an appraisal of $80M? Gary says "no." Gary then says that Neil and Powers told him the property was worth $80M. Gary then said he told Powers "if it's worth $80M, sell it for $60M and keep the $20M then we can call go home." My eyes almost rolled out of my eye sockets onto the floor when he said this. If Gary thinks someone else is making one penny in a deal, he will spend $100M in legal fees to get that one penny. He is that crazy. Gary's words will be very important tomorrow. I've read the civil doc and have seen the agreements and such.

Urban asks "in the civil complaint against Powers, Neil, did you ever give a value for the property?" Gary "maybe $30M." Then he adds "there was such gross fraud. None of it was true." The Judge struck that statement.

Gary states he never heard the taped conversation he had with the DA's investigator Villasenor. Urban asks Gary if he knew he was being recorded by Villasenor. Gary says "no." He adds that he also never heard the tapes. Urban asked if Gary asked the DA if the confidentiality agreement in mediation would hold up in a criminal complaint? Gary was told that it would not hold up in a criminal complaint, only a civil complaint. Therefore what was said in mediation would be admissible.

They then stopped cross examination on that item so they could clarify things. They went on to the next item and will return to that in the morning.

Urban asked if Gary originally relied on Neil in making land purchase decisions. Gary said no, not originally but he did later.  Gary again said if he knew the prices were inflated, he would have never bought the property.

Urban asked him if he looked at any other land for sale by other people. Gary said no.

Gary said he paid Powers $1,500/mo to manage property. Gary said the "agreement" with Powers was that if a property was listed for sale, the seller paid the 6% commission. If it was not listed for sale, then Powers could take a 6% commission and split with other people.

Urban asked if there was a written contract about the 6%? Gary said no but it was mentioned in letters. Gary puts all other contracts in writing except this one. Gary admits he had Costa Rican and US lawyers involved the entire time.

Gary then says out of the blue that Powers was the manager of C&M Investments. Urban then shows Gary the C&M Investment agreement. Urban shows that Gary is listed as the manager of C&M Investments. Someone by the name of I think Jeffeer Mangles may have written this agreement for Gary. The manager is listed as Gary Michelson/Karlin Asset Mgmt. Gary insists that Powers was the manager of C&M Investments in Costa Rica and Gary was just the managing partner of C&M Investments in California. Oy.

If you have read any docs in the California civil case you would have seen any agreements that did or did not exist which directly relate to this case. I almost feel sorry for Gary squirming on the witness stand, getting defensive but of course I don't. I very much look forward to tomorrow.

I may have made mistakes. It was tough keeping the facts let alone Gary's stories straight.



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