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AFFIDAVIT OF DAVID GINGRAS
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GINGRAS
LAWOFFICE
,PLLC
3941E
.CHAN
DLERBLVD
.,#106
-243
PHOENIX
,AZ85048
David S. Gingras, #021097Gingras Law Office, PLLC3941 E. Chandler Blvd., #106-243Phoenix, AZ 85048Tel.: (480) 668-3623Fax: (480) 248-3196
Attorney for Plaintiff Xcentric Ventures, LLC
UNITED STATES DISTRICT COURT
DISTRICT OF ARIZONA
Xcentric Ventures, LLC, an Arizonalimited liability company,
Plaintiff,
v.
Lisa Jean Borodkin, et al.,
Defendants.
Raymond Mobrez,
Counterclaimant,
v.
Xcentric Ventures, LLC, andEdward Magedson,
Counterdefendants.
Case No.: 11-CV-1426-GMS
AFFIDAVIT OF DAVID GINGRAS IN
SUPPORT OF PLAINTIFF/
COUNTERDEFENDANT XCENTRIC
VENTURES, LLCS REPLY RE:
SUMMARY JUDGMENT RE:
COUNTERCLAIM
I, David S. Gingras declare as follows:
1. My name is David Gingras. I am a United States citizen, a resident of the
State of Arizona, am over the age of 18 years, and if called to testify in court or other
proceeding I could and would give the following testimony which is based upon my own
personal knowledge unless otherwise stated.
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GINGRAS
LAWOFFICE
,PLLC
3941E
.CHAN
DLERBLVD
.,#106
-243
PHOE
NIX
,AZ85048
2. I am an attorney licensed to practice law in the States of Arizona and
California, I am an active member in good standing with the State Bars of Arizona and
California and I am admitted to practice and in good standing with the United States
District Court for the District of Arizona and the United States District Court for the
Northern, Central, and Eastern Districts of California.
3. I represented Xcentric Ventures, LLC and Edward Magedson in the lawsuit
filed against them in California entitled Asia Economic Institute, LLC, et al. v. Xcentric
Ventures, LLC, et al., Case No. 10-cv-1360 (the California Litigation).
4. I am aware that in this matter, Mr. Mobrez claims that his wiretapping
cause of action based on an alleged violation of Cal. Pen. Code 632 was raised in the
prior California Litigation and that such claim was never resolved by the district court.
Both of these assertions are incorrect.
5. The original Complaint filed by Mr. Mobrez in the California Litigation on
January 27, 2010 is attached to Xcentrics First Amended Complaint (Doc. #55) in this
matter as Exhibit A. This pleading did not raise any cause of action under Cal. Pen.
Code 632. The failure to include such a claim is understandable because at that time,
Mr. Mobrez was not aware that his calls to Xcentric were recorded. Mr. Mobrez was not
informed that his phone calls to Xcentric were recorded until I took his deposition on
May 7, 2010 and revealed that fact to him by playing the recordings of each call.
6. After I deposed Mr. Mobrez on May 7, 2010, the district court granted
partial summary judgment in favor of Xcentric as to the claim of RICO/extortion in a
ruling dated July 19, 2010. In that same ruling, the district court also dismissed Mr.
Mobrezs RICO/wire fraud claim pursuant to Fed. R. Civ. P. 9(b) based on a finding that
the claim was not pleaded with particularity. In the same ruling, the court granted Mr.
Mobrez leave to amend his RICO/wire fraud claim within 10 days.
7. On July 27, 2010, Mr. Mobrez filed an 84-page First Amended Complaint
in the California case. As reflected by the caption of the pleading, a copy of which is
attached hereto as Exhibit A, the FAC did not contain a cause of action for wiretapping.
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GINGRAS
LAWOFFICE
,PLLC
3941E
.CHAN
DLERBLVD
.,#106
-243
PHOE
NIX
,AZ85048
However, in paragraph 14 of the FAC, also included in Exhibit A, Mr. Mobrez made the
following reference to Xcentrics practice of recording phone calls:
14. The Ripoff Report enterprise until approximately May or June 2010
had a regular business practice of secretly recording or causing to berecorded all telephone conversations to its business telephone number, in
association with an unidentified vendor, without disclosure to or consent of
all parties to the telephone conversations, in violation of, inter alia, the
wiretapping laws of the State of California. The Ripoff Report has used or
attempted to use the contents of such secret recordings as a surprise
litigation tactic in actions in, inter alia, California and Arizona. Defendants
used instrumentalities of interstate commerce, specifically wire, to record
such telephone calls.
8. Other than this single reference, the First Amended Complaint in the
California action did not specifically refer to California Penal Code 632, nor did it
request damages relating to the recorded phone calls from Mr. Mobrez to Mr. Magedson.
9. On August 6, 2010, Xcentric filed a Motion to Dismiss the First Amended
Complaint based on Rule 9(b) and 12(b)(6). In addition, Xcentric served Ms. Borodkin
and Mr. Blackert with a proposed Motion for Rule 11 sanctions relating to certain
allegations in the FAC and Xcentric also moved to strike certain allegations in the FAC.
10. In response, on August 17, 2010, Mr. Mobrez filed a Motion for Leave to
Amend and a proposed 72-page Second Amended Complaint. As reflected in the caption
of the proposed SAC, a copy of which is attached hereto as Exhibit B, the Second
Amended Complaint did not contain a cause of action for wiretapping. However, the
proposed SAC did contain the exact same factual allegations as paragraph 14 of the FAC
as quoted above relating to Xcentrics practice of recording phone calls.
11. On September 20, 2010, a hearing was held in the California Litigation to
discuss numerous pending motions including Xcentrics Motion to Dismiss the First
Amended Complaint and Mr. Mobrezs Motion for Leave to file the proposed Second
Amended Complaint. As reflected in the courts minute order from this hearing, a copy
of which is attached hereto as Exhibit C, the district judge ordered that Mr. Mobrezs
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GINGRAS
LAWOFFICE
,PLLC
3941E
.CHAN
DLERBLVD
.,#106
-243
PHOE
NIX
,AZ85048
first amended complaint is the operative document, and the court further ordered
Xcentric to file a Motion for Summary Judgment within seven days.
12. As ordered, on September 27, 2010, Xcentric filed a Motion for Summary
Judgment seeking the disposition of each and every claim set forth in the First Amended
Complaint. Xcentrics motion was granted in its entirety on May 4, 2011. See Asia
Economic Institute, LLC v. Xcentric Ventures, LLC, 2011 WL 2469822 (C.D.Cal. 2011).
13. Following the summary judgment ruling, on June 15, 2011, the California
district court entered final judgment in favor of Xcentric as to all claims and relief
requested by Plaintiffs, and Plaintiffs are ordered to take nothing thereby. A copy of the
district courts final judgment is attached hereto as Exhibit D.
Pursuant to 28 U.S.C. 1746, I declare under penalty of perjury under the laws of the
United States of America that the foregoing is true and correct.
EXECUTED ON: November 7, 2012.
/S/David S. Gingras
David S. Gingras
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GINGRAS
LAWOFFICE
,PLLC
3941E
.CHAN
DLERBLVD
.,#106
-243
PHOE
NIX
,AZ85048
CERTIFICATE OF SERVICE
I hereby certify that on November 7, 2012 I electronically transmitted the attached
document to the Clerks Office using the CM/ECF System for filing, and for transmittalof a Notice of Electronic Filing to the following:
John S. Craiger, Esq.
David E. Funkhouser III, Esq.
Quarles & Brady LLP
One Renaissance Square
Two North Central Avenue
Phoenix, Arizona 85004-2391
Attorneys for Defendant Lisa J. Borodkin
Raymond Mobrez
Iliana Llaneras
PO BOX 3663
Santa Monica, CA 90408
DefendantsPro Se
And a courtesy copy of the foregoing delivered to:
HONORABLE G. MURRAY SNOW
United States District Court
Sandra Day OConnor U.S. Courthouse, Suite 622401 West Washington Street, SPC 80
Phoenix, AZ 85003-215
/s/David S. Gingras
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Exhibit A
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First Amended Complaint - 1
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Daniel F. Blackert, (SBN 255021)[email protected] J. Borodkin, (SBN 196412)[email protected] ECONOMIC INSTITUTE, LLC11766 Wilshire Blvd., Suite 260Los Angeles, CA 90025
Telephone (310) 806-3000Facsimile (310) 826-4448
Attorneys for PlaintiffsAsia Economic Institute, LLC,Raymond Mobrez, andIliana Llaneras
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
ASIA ECONOMIC
INSTITUTE, LLC, a CaliforniaLLC; RAYMOND MOBREZ an
individual; and ILIANA
LLANERAS, an individual,
Plaintiffs,
vs.
XCENTRIC VENTURES, LLC,
an Arizona LLC, doing businessas BADBUSINESS BUREAU,
RIPOFF REPORT, and
RIPOFFREPORT.COM,
BAD BUSINESS BUREAU,
LLC, organized and existing
under the laws of St. Kitts and
Nevis, West Indies; EDWARD
MAGEDSON an individual, also
known as EDWARD
MAGIDSON also known as theEditor, and DOES 1 through
100, inclusive,
Defendants.
)
)))))))))))))))))))))))))))
))))))
Case No.: 2:10-cv-01360-SVW-PJW
FIRST AMENDED COMPLAINT FOR:
(1) VIOLATION OF 18 U.S.C. 1962(c) --CIVIL RICO
(2) VIOLATION OF 18 U.S.C. 1962(d) --RICO CONSPIRACY
(3) UNFAIR BUSINESS PRACTICES --CAL. BUS. & PROF. CODE 17200 et
seq.(4) DEFAMATION(5) DEFAMATION PER SE(6) INTENTIONAL INTERFERENCE
WITH PROSPECTIVE ECONOMIC
RELATIONS
(7) NEGLIGENT INTERFERENCEWITH PROSPECTIVE ECONOMIC
RELATIONS
(8) NEGLIGENT INTERFERENCEWITH ECONOMIC RELATIONS
(9) DECEIT(10)FRAUD(11)INJUNCTION
JURY TRIAL DEMANDED
Case 2:10-cv-01360-SVW-PJW Document 96 Filed 07/27/10 Page 1 of 84 Page ID #:2322Case 2:11-cv-01426-GMS Document 145-1 Filed 11/07/12 Page 7 of 16
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First Amended Complaint - 6
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the contents of certain reports; writing and publishing findings; collaborating with
the subjects of paid testimonials and endorsements in writing original content
about them and publishing it through the ROR Website; communicating with
individual subjects of reports by electronic mail, particularly to urge them to file
rebuttals or comments to existing Reports; supervising or acting in association with
a currently unknown individual identified only by the electronic mail address
[email protected] at certain times relevant herein, whose duties included
responding to complaints that rebuttals were not posting or were being posted to
the wrong reports; engaging, supervising and collaborating with counsel to draft
significant and influential portions of the ROR Website and otherwise. Magedson
uses instrumentalities of interstate commerce to conduct these activities,specifically wire.
13. Xcentric and its associates in the Ripoff Report enterprise useextremely aggressive litigation strategies to, inter alia, protect and perpetuate its
business model, and silence and retaliate against their critics, including by
affirmatively initiating an Arizona state court action against Washington State-
based attorney and search engine optimization consultant and blogger Sarah L.
Bird, Xcentric Ventures LLC v. Bird, (D. Ariz. 09-cv-1033) which action was
dismissed on jurisdictional grounds and is currently on appeal to the Ninth Circuit
Court of Appeals (10-1546); initiating an Arizona state court defamation action
against Phoenix New Times reporter Sarah Fenske, her husband, a source for an
article, the sources spouse and the publishers, Xcentric v. Village Voice Media,
CV2008-2416 (Arizona Sup. Ct. for Maricopa County); and is currently opposing
an appeal to the Seventh Circuit (10-1167) in Blockowicz v. Williams, 675 F.
Supp. 2d 912 (N.D. Ill. 2009) (09-cv-3955) regarding its purported right to defy
compliance with a permanent injunction ordering it to remove defamatory content.
14. The Ripoff Report enterprise until approximately May or June 2010had a regular business practice of secretly recording or causing to be recorded all
telephone conversations to its business telephone number, in association with an
Case 2:10-cv-01360-SVW-PJW Document 96 Filed 07/27/10 Page 6 of 84 Page ID #:2327Case 2:11-cv-01426-GMS Document 145-1 Filed 11/07/12 Page 8 of 16
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First Amended Complaint - 7
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unidentified vendor, without disclosure to or consent of all parties to the telephone
conversations, in violation of, inter alia, the wiretapping laws of the State of
California. The Ripoff Report has used or attempted to use the contents of such
secret recordings as a surprise litigation tactic in actions in, inter alia, California
and Arizona. Defendants used instrumentalities of interstate commerce,
specifically wire, to record such telephone calls.
15. The true names and capacities, whether individual, corporate, orotherwise, of Defendants DOES 1 to 100 are unknown to Plaintiffs at the present
time, who therefore sue such Defendants by fictitious names, and will amend this
Complaint to show their true names and capacities when ascertained. Plaintiffs are
informed and believe and thereon allege that each of the defendants assigned as aDOE is responsible in some manner for the events and happenings herein referred
to, and thereby proximately caused injuries and damages to the Plaintiffs. Plaintiffs
will amend this complaint to add as defendants in this action those individuals and
entities who have assisted Defendants in perpetrating the acts and omissions
complained of herein, including additional individuals and entities complicit in
managing and operating the affairs of the Ripoff Report enterprise.
III.
SUMMARY OF THE ALLEGATIONS
16. The Ripoff Report enterprise takes advantage of the average personslack of sophistication in technology, reliance on Internet search engines, and
general lack of time. It misrepresents its true nature to the public and places its
victims in desperate positions through elaborate technological and legal traps and
artifices. It then intimidates and defrauds its victims into believing that the only
practical way of saving their good names is to defend them on its home turf, the
ROR Website, where it makes the rules, it decides who gets heard, and most of all,
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Exhibit B
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Amended Complaint - 1
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Daniel F. Blackert, (SBN 255021)[email protected] J. Borodkin, (SBN 196412)[email protected] ECONOMIC INSTITUTE, LLC11766 Wilshire Blvd., Suite 260Los Angeles, CA 90025
Telephone (310) 806-3000Facsimile (310) 826-4448
Attorneys for PlaintiffsAsia Economic Institute, LLC,Raymond Mobrez, andIliana Llaneras
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
ASIA ECONOMIC
INSTITUTE, LLC, a CaliforniaLLC; RAYMOND MOBREZ an
individual; and ILIANA
LLANERAS, an individual,
Plaintiffs,
vs.
XCENTRIC VENTURES, LLC,
an Arizona LLC, doing businessas BADBUSINESS BUREAU,
RIPOFF REPORT, and
RIPOFFREPORT.COM,
BAD BUSINESS BUREAU,
LLC, organized and existing
under the laws of St. Kitts and
Nevis, West Indies; EDWARD
MAGEDSON an individual, also
known as EDWARD
MAGIDSON also known as theEditor, and DOES 1 through
100, inclusive,
Defendants.
)
)))))))))))))))))))))))))))
))))))
Case No.: 2:10-cv-01360-SVW-PJW
SECOND AMENDED COMPLAINT FOR:
(1) UNFAIR BUSINESS PRACTICES --CAL. BUS. & PROF. CODE 17200 et
seq.
(2) DEFAMATION(3) DEFAMATION PER SE(4) INTENTIONAL INTERFERENCE
WITH PROSPECTIVE ECONOMICRELATIONS
(5) NEGLIGENT INTERFERENCEWITH PROSPECTIVE ECONOMIC
RELATIONS
(6) NEGLIGENT INTERFERENCEWITH ECONOMIC RELATIONS
(7) DECEIT(8) FRAUD(9) INJUNCTION
JURY TRIAL DEMANDED
Case 2:10-cv-01360-SVW -PJW Document 122 Filed 08/17/10 Page 1 of 72 Page ID#:3561
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Amended Complaint - 7
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Supp. 2d 912 (N.D. Ill. 2009) (09-cv-3955) regarding its purported right to defy
compliance with a permanent injunction ordering it to remove defamatory content.
9. The Ripoff Report enterprise until approximately May or June 2010had a regular business practice of secretly recording or causing to be recorded all
telephone conversations to its business telephone number, in association with an
unidentified vendor, without disclosure to or consent of all parties to the telephone
conversations, in violation of, inter alia, the wiretapping laws of the State of
California. The Ripoff Report has used or attempted to use the contents of such
secret recordings as a surprise litigation tactic in actions in, inter alia, California
and Arizona. Defendants used instrumentalities of interstate commerce,
specifically wire, to record such telephone calls.10. The true names and capacities, whether individual, corporate, or
otherwise, of Defendants DOES 1 to 100 are unknown to Plaintiffs at the present
time, which therefore sue such Defendants by fictitious names, and will amend this
Complaint to show their true names and capacities when ascertained. Plaintiffs are
informed and believe and thereon allege that each of the defendants assigned as a
DOE is responsible in some manner for the events and happenings herein referred
to, and thereby proximately caused injuries and damages to the Plaintiffs. Plaintiffs
will amend this complaint to add as defendants in this action those individuals and
entities who have assisted Defendants in perpetrating the acts and omissions
complained of herein, including additional individuals and entities complicit in
managing and operating the affairs of the Ripoff Report enterprise.
III.
SUMMARY OF THE ALLEGATIONS
11. The Ripoff Report enterprise takes advantage of the average personslack of sophistication in technology, reliance on Internet search engines, and
general lack of time. It misrepresents its true nature to the public and places its
Case 2:10-cv-01360-SVW -PJW Document 122 Filed 08/17/10 Page 7 of 72 Page ID#:3567
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Exhibit C
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UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No. CV10-1360-SVW-PJWx Date September 20, 2010
Title Asia Economic Institute et al v. Xcentric Ventures LLC et al
: 20
Initials of Preparer PMC
CV-90 (06/04) CIVI L M INUTES - GENERAL Page 1 of 1
Present: The Honorable STEPHEN V. WILSON, U.S. DISTRICT JUDGE
Paul M. Cruz Deborah Gackle
Deputy Clerk Court Reporter / Recorder Tape No.
Attorneys Present for Plaintiffs: Attorneys Present for Defendants:
Lisa Boradkin David S. GingrasMaria C. Speth
Proceedings: 1. MOTION TO DISMISS FIRST AMENDED COMPLAINT FILED BY DEFENDANTS[110] (fld 08/06/10)2. MOTION FOR RELIEF FROM MOTION TO DISMISS PLAINTIFFS' FIRSTAMENDED COMPLAINT FILED BY PLAINTIFFS [115] (fld 8/16/10)3. MOTION FOR LEAVE TO FILE SECOND AMENDED COMPLAINT FILED BYPLAINTIFFS [116] (fld 8/16/10)4. MOTION FOR RECONSIDERATION RE ORDER #94 FILED BY PLAINTIFFS [118)(fld 8/16/10)5. MOTION TO STRIKE MATERIAL FROM DOCUMENTS 118 AND 121 AND MOTIONFOR SANCTIONS [124]
Hearing held. The motion reconsideration [118] is denied. Order to issue. The RICO claims arestricken. The first amended complaint is the operative document. The Court sets the followingschedule:
Filing of Motion for Summary Judgment . . . . . . . . . . . . . . . . . . . . . . . . . . . September 27, 2010Opposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October 4, 2010Reply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October 12, 2010
Hearing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November 1, 2010 at 1:30 p.m.
Case 2:10-cv-01360-SVW -PJW Document 144 Filed 09/20/10 Page 1 of 1 Page ID#:4196
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Exhibit D
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Case 2:10-cv-01360-SVW -PJW Document 186 Filed 06/15/11 Page 1 of 1 Page ID#:5106
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