The Asher CDs were from 2012. Never another to Asher.
I think the testimony provided shows differently:
Testimony from the Administrative Proceeding hearing held on 08/09/2017 - MY Bolds.
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Q Digital Brand has been sued a while ago by Asher 9 Enterprises over promissory notes that Digital Brand have 1 O voluntarily entered into with Asher Enterprises. Correct? 11 A Yes. 12 Q And you borrowed money from Asher Enterprises with your 13 eyes wide open, but - 14 A And everything was going along - 15 Q Let me finish my question. Let me finish my question. 16 With eyes wide open, and then you defaulted and were 17 sued. Correct? 18 A Yes. 19 Q And nothing is surprising about that, that if you 20 borrow money and you don't comply with your obligation and you 21 get sued. Correct? 22 A It didn't quite work that way. 23 Q Now, you borrowed the money when it was - strike thal 24 I'll start that over again. 25 At the time that you borrowed the money, you knew that (Continued on page 114)
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1 Asher Enterprises was known as lender of last resort?
2 A No, not at the time. We had been borrowing money from 3 Asher. Keep in mind we acquired Digital Clarity in 2010, 2011 4 at the top of the worst financial recessions we ever had. IBM 5 couldn't even borrow money, let alone us. 6 So yes and begrudgingly egregious terms. We were fine. 7 We borrowed over a half a million dollar from Asher starting in 8 2010. And they were paid back fine and dandy until we got to 9 2013, and then can I -
1 O Q Let do this in order. How about this: My question 11 that you knew at the time you borrowed money that they were 12 known 13 A No.
14 Q They were known as a lender of last resort?
15 A No, I didn't.
16 Q You went to them because you couldn't get money from 17 anyone else. Correct?
18 A I think that is a fallacious conclusion . 19 You went to [the] well to borrow from them three times in 20 2013. Correct?
21 A Yes. We did.
22 Q A February note of 42,500? 23 A Yes, and we had 75,000 remaining on the note. Yes. 24 Q Let's get it straight. The February note of 42,500, 25 you went and borrowed that? (Continued on Page 115)
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1 A And we paid back all by 5,000 of that. So let's just 2 get the right position her. 3 Q One thing at a time. Let's get it straight. A 4 February note of 42,500. Correct? 5 A Yes. 6 a An April note of 37,500. Correct? 7 A Correct. 8 Q A June note of 32,500? 9 A Yes. 1 O Q And these things are laid out in the complaint against 11 you and in your counterclaim against Asher Enterprises. Right? 12 A Yes. 13 Q The notes have been submitted by your counsel and were 14 included as your Respondent exhibits - 15 A Yes. 16 Q - that reflected those figures. Right? 17 A Yes. 18 Q And then you chose to not make your periodic - wait. 19 Sorry. 20 You decided not to make your periodic filings because 21 you knew - you knew of your periodic filings, but you chose not 22 to make them because you wanted to fight this with Asher 23 Enterprises. Correct? 24 A You are making - the timeline doesn't work. Let's go 25 back. You brought the notes up. So if I may respond to the (Continued on page 116)
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1 notes. 2 Q Let's go back to those notes, but maybe we can start 3 with what happened after they sued you. Okay. Let's start witt 4 thal 5 A You can't do that without going back to - well, just 6 pre them suing us. So it's proper to just get that little bit 7 before. 8 It was November 15th of 2013. I received a letter from 9 the SEC which stated that the auditor that we had been using, 10 Sherb & Co., had been decertified and could no longer provide 11 public audits, which meant I had to re-audit 2012 now. I was 12 two weeks from filing my - 13 MR. O'ROURKE: Your Honor, if I could interrupt, this 14 is not a time for their whole defense.