Submitted by resipsa on
Sarah was a naïve girl who in her innocence threw her father under the proverbial bus by detailing her father’s fraudulent activity. Charles R. Patten, Sr., and Deborah Davis Patten knew no limits to their deviant behavior as they knowingly and willfully perverted their own daughter, and potentially other family members and friends, by having her perform criminal acts.
The criminal acts consist of 401k fraud and tax evasion. The IRS requires 401k’s to be deposited into with “earned income.” By moving the gross revenue earnings from the bottom line into the fringe benefits accounting pool the Patten's gave the illusion that expenses associated with the fringe benefit of a 401k account had been incurred.
The 401k fraud and tax evasion becomes substantial when you consider the potential of $16,500 for each 401k, over 10 years with a number of family members and friends afforded the ability to “max out” their 401k’s with unearned income. This does not account for the abuse of Self Employed Pensions (SEP’s), which has the same fundamental requirements of a 401k. A significant difference with a SEP is the annual ceiling amount one can invest is $49,000.
1
UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
- - - - - - - - - - - - - - - - -x
:
UNITED STATES EX REL. THOMAS UBL,:
:
Qui Tam Relator, :
:
vs. : Civil Action No.:
:
IIF DATA SOLUTIONS, and : 1:06cv64ILOG/TRJ
CHARLES PATTEN, SR., :
:
Defendants. :
:
- - - - - - - - - - - - - - - - -x
Alexandria, Virginia
Monday, September 10, 2007
The deposition of SARAH PATTEN, called for
examination by counsel for Qui Tam Relator in the
above-entitled matter, pursuant to Notice, in the
offices of DiMuro Ginsberg, 908 King Street,
Alexandria, Virginia, convened at 9:55 a.m., before
Cathy Jardim, a notary public in and for the
Commonwealth of Virginia, when were present on behalf
of the parties:
2
APPEARANCES:
On behalf of the Qui Tam Relator:
STEPHEN J. STINE, ESQ.
DiMuro Ginsberg, PC
908 King Street
Alexandria, Virginia 22312
(703) 684-4333
On behalf of the Defendants:
JASON N. WORKMASTER, ESQ.
TODD J. CANNI, ESQ.
McKenna Long & Aldridge, LLP
1900 K Street, N.W.
Washington, D.C. 20006
(202) 496-7422
3
C O N T E N T S
EXAMINATION BY COUNSEL FOR
WITNESS QUI TAM RELATOR DEFENDANTS
SARAH PATTEN 4 --
E X H I B I T S
S. Patten Deposition Exhibits MARKED
No. 1 14
No. 2 16
No. 3 17
No. 4 18
No. 5 19
No. 6 20
No. 7 23
4
1 P R O C E E D I N G S
2 Whereupon,
3 SARAH PATTEN
4 was called for examination by counsel for Qui Tam
5 Relator and, having been first duly sworn by the
6 notary public, was examined and testified as follows:
7 EXAMINATION BY COUNSEL FOR QUIT TAM RELATOR
8 BY MR. STINE:
9 Q. Could you please state your name for the
10 record?
11 A. Sarah Patten.
12 Q. What is your current employment situation?
13 A. I work for IIF Data Solutions.
14 Q. How long have you worked there?
15 A. Two years steadily right now. A few more on
16 and off.
17 Q. So you have been there approximately two
18 years from today's date?
19 A. Yes.
20 Q. And what were the time periods before that
21 that you worked for the company?
22 A. In the summer of 2002.
5
1 Q. Any other timeframe?
2 A. 2005 until now.
3 Q. I apologize. I was going to go over some
4 opening deposition instructions. Have you ever been
5 deposed before?
6 A. No.
7 Q. Just so you know, kind of as we discussed
8 before, your attorneys may actually make some
9 objections. That doesn't mean you don't answer the
10 question. You continue to answer unless they
11 instruct you otherwise.
12 Are you under any type of medication --
13 A. No.
14 Q. -- that would affect your ability to
15 testify?
16 A. No.
17 Q. What is your current responsibilities with
18 the company?
19 A. I do payroll.
20 Q. Is that entirely your responsibility?
21 A. Yes.
22 Q. Do you work with any other individuals doing
6
1 payroll?
2 A. I am training someone now, yes, but up to
3 now it has been just be, and I work with Kim Trimble
4 a little bit.
5 Q. Who is your supervisor?
6 A. Kim Trimble.
7 Q. What did you do in the summer of 2002?
8 A. I was a receptionist.
9 Q. Who was your supervisor at that time?
10 A. At that time, Kim Trimble as well.
11 Q. Are you aware of who the officers were in
12 the company when you were hired in 2002?
13 A. No.
14 Q. Do you know your father's position in the
15 company at that time?
16 A. Vice president.
17 Q. Do you know who -- what was your mother's
18 role in the company, if you know?
19 A. She was president.
20 Q. Do your mother and father still hold the
21 same relationship, to your knowledge?
22 A. Yes.
7
1 Q. They still hold the same positions in the
2 company.
3 Do you know of an individual named Maury
4 Mayfield?
5 A. I have heard of him.
6 Q. Have you met him?
7 A. No.
8 Q. Do you know what his role is, if any, in
9 IIF?
10 A. No.
11 Q. These questions I am going to ask you for
12 now are strictly related to your time in the summer
13 of 2002, that timeframe. You were a receptionist
14 there. Describe your daily activity.
15 A. Anything that anybody may need help with,
16 faxing, making copies, sending out mail, answering
17 phones.
18 Q. Who did you interact with on a daily basis
19 in the office as far as employees?
20 A. Anybody who walked in the front, to say hi.
21 Q. Do you know who are the sales -- who were in
22 the sales department at IIF in 2002?
8
1 A. No.
2 Q. Do you know who wrote proposals or requests
3 for proposals?
4 A. No.
5 Q. Do you know who took sales calls?
6 A. No.
7 Q. Do you know who undertakes any of those
8 activities now?
9 A. No.
10 Q. Do you know of anyone who created marketing
11 materials in the summer of 2002?
12 A. No.
13 Q. Do you know of anyone who hired or reviewed
14 for business development?
15 A. No.
16 Q. Are you aware of a publication called the
17 Federal Business Opportunity?
18 A. No.
19 Q. Do you know of anyone in the summer of 2002
20 who recruited employees for team positions?
21 A. No.
22 Q. Did you have any HR, human resources,
9
1 responsibility in the summer of 2002?
2 A. No.
3 Q. Are you familiar with what contracts IIF was
4 performing in the summer of 2002?
5 A. No.
6 Q. Are you familiar with the term labor
7 categories?
8 A. No.
9 Q. If I tell you -- does the -- have you ever
10 heard of the contract, the IT schedule contract,
11 information technology schedule contract?
12 A. No.
13 Q. Were you aware that the company in 2002 had
14 contracts with the GSA, the General Services
15 Administration?
16 A. Yes.
17 Q. Did you have any interaction with any GSA
18 officials?
19 A. No.
20 Q. Do you know what labor category you were
21 classified in the summer of 2002?
22 A. No.
10
1 Q. Do you know a labor category in which you
2 are classified presently?
3 A. I am not sure about labor category. I was
4 in payroll.
5 MR. CANNI: I would object to that, Stephen.
6 You should clarify if she even knows what labor
7 category means, if she is under a labor category.
8 MR. STINE: I think I asked that earlier and
9 she said she didn't know. I was just trying to probe
10 further.
11 MR. CANNI: I think her response was how she
12 would describe her position she holds. I don't know
13 if she understands the difference.
14 BY MR. STINE:
15 Q. Just to clarify for the record, do you
16 understand what a labor category is?
17 A. No.
18 Q. Are you presently in college or getting some
19 type of other higher education?
20 A. No.
21 Q. Were you in the summer of 2002?
22 A. Yes.
11
1 Q. Where did you attend -- was it college?
2 A. Yes, Northern Virginia Community College,
3 and New River Community College.
4 Q. North Virginia and what was the other one?
5 A. New River.
6 Q. Is New River also a Virginia college?
7 A. Yes.
8 Q. New River Community College?
9 A. Yes.
10 Q. What were the dates that you attended
11 college there at those two locations -- let's just
12 start with Northern Virginia Community College. When
13 did you attend there?
14 A. Fall 2001. Didn't go there in 2002. That
15 is when I went to New River, and New River was August
16 2002.
17 Q. So you attended Northern Virginia Community
18 College for the fall semester?
19 A. In 2001.
20 Q. And the spring semester, did you attend
21 there?
22 A. No.
12
1 Q. And then you started at New River Community
2 College in August 2002?
3 A. Right.
4 Q. How long did you continue to go there?
5 A. I was there for three years.
6 Q. Have you attained a degree?
7 A. No.
8 Q. During your time in the summer of 2002, were
9 you familiar with what type of task order you were
10 performing under?
11 A. No.
12 MR. WORKMASTER: Objection. Are you
13 assuming she is working under a task order?
14 BY MR. STINE:
15 Q. First question is do you understand what a
16 task order is?
17 A. No.
18 Q. How did you keep track of the hours for
19 which you were working in the summer of 2002?
20 A. Time cards.
21 Q. Who would you submit those time cards to?
22 A. Kim Trimble.
13
1 Q. What about presently, how do you keep track
2 of your hours?
3 A. Time cards as well.
4 Q. And who do you submit those to?
5 A. To Cindy Thomas.
6 Q. Is there anyone else who would have approved
7 time cards?
8 A. Kim Trimble. She approves them and they go
9 on to Cindy.
10 Q. Would your mother have ever approved time
11 cards for you?
12 A. No.
13 Q. What documents have you reviewed in
14 preparation for this deposition, if any?
15 MR. CANNI: I would object here to the
16 extent that it calls for materials protected by the
17 attorney-client work-product privilege.
18 In terms of your response, it would be
19 limited to any documents that I haven't shown you or
20 that Jason hasn't shown you.
21 THE WITNESS: None.
22 BY MR. STINE:
14
1 Q. Have you ever reviewed the amended
2 complaint?
3 A. No.
4 Q. Or any complaint in this case?
5 A. No.
6 Q. Now, you mentioned you began work in the
7 summer of 2002, for the first time, for IIF?
8 A. Yes.
9 Q. Do you know precisely what month that began,
10 that work began?
11 A. July, the end of July.
12 Q. 2002?
13 A. Yes.
14 (S. Patten Exhibit No. 1
15 was marked for identification.)
16 BY MR. STINE:
17 Q. Have you ever seen this document before?
18 A. No.
19 Q. Could you find your name on this document?
20 It is in alphabetical order, it should be 23.
21 A. Okay.
22 Q. Can you go across the column to where it
15
1 says start?
2 A. Yes.
3 Q. What is the date on there?
4 A. 7/10/2001.
5 Q. Why does this document say that you began
6 for work for the company in 2001?
7 A. My father put us on payroll to max out my
8 401(k).
9 Q. Did you have any conversations with your
10 father about doing this?
11 A. No.
12 Q. How were you aware that he was doing this?
13 A. At the time I was not aware he was doing it.
14 Q. Do you know how your hours in the summer of
15 2002 were billed to the government?
16 A. No.
17 Q. Do you know what category, how they were
18 classified --
19 MR. WORKMASTER: Objection. Your question
20 assumes they were billed to the government. I don't
21 know that she stated that she knows they were.
22 BY MR. STINE:
16
1 Q. Do you know how they were billed?
2 A. No.
3 Q. Are you familiar with overhead?
4 A. Yes.
5 Q. Do you know whether your hours were
6 classified as overhead?
7 A. I believe they were.
8 Q. What is your understanding of overhead?
9 A. It is money that -- IIF money, for corporate
10 overhead they can do. I guess it is money that is
11 theirs.
12 MR. STINE: Can you mark this as Exhibit 2?
13 (S. Patten Exhibit No. 2
14 was marked for identification.)
15 BY MR. STINE:
16 Q. Have you seen this document before?
17 A. No.
18 Q. Who approved this document?
19 A. My mother.
20 Q. Wasn't Kim Trimble supposed to approve these
21 documents, your time sheets?
22 A. I am not sure.
17
1 Q. What is the date of this pay period?
2 A. September 1 through September 15, 2001.
3 Q. What work were you performing for the
4 company during this time?
5 A. I wasn't.
6 Q. What are the total hours on this time sheet?
7 A. Forty-two.
8 Q. Do you have an understanding of why you had
9 a time sheet during this time period?
10 A. No.
11 MR. STINE: Can you mark this as Exhibit No.
12 3.
13 (S. Patten Exhibit No. 3
14 was marked for identification.)
15 BY MR. STINE:
16 Q. Could you identify this document?
17 A. It is a time card.
18 Q. Who approved it?
19 A. My mother.
20 Q. Is this a time card for your services?
21 A. Yes.
22 Q. What is the pay period date?
18
1 A. October 16 through 31, 2001.
2 Q. Did you work for IIF during this timeframe?
3 A. No.
4 Q. How many hours were submitted for you on
5 this time card?
6 A. Ninety-six.
7 Q. Did you perform any of the hours?
8 A. No.
9 Q. Do you know why the hours are listed as
10 overhead?
11 A. To max out the 401(k).
12 MR. STINE: Exhibit 4.
13 (S. Patten Exhibit No. 4
14 was marked for identification.)
15 BY MR. STINE:
16 Q. Could you identify this document?
17 A. Time card.
18 Q. For whom?
19 A. For me.
20 Q. What is the pay period dates?
21 A. November 1 through 15, 2001.
22 Q. How many total hours are shown on this time
19
1 card?
2 A. Eighty-eight.
3 Q. Did you perform any of the hours listed on
4 this time card?
5 A. No.
6 MR. STINE: Exhibit 5.
7 (S. Patten Exhibit No. 5
8 was marked for identification.)
9 BY MR. STINE:
10 Q. Can you identify this document, please?
11 A. It is a time card.
12 Q. Whose time card is it?
13 A. Mine.
14 Q. What are the dates of the pay period for
15 this time card?
16 A. November 16 through 30, 2001.
17 Q. And if you can read it, what is the total
18 hours for this pay period?
19 A. Eighty-eight.
20 Q. And did you perform any of the work
21 listed -- the hours listed in this time card?
22 A. No.
20
1 MR. CANNI: Steve, for purposes of time, I
2 am willing to stipulate that her answers would be the
3 same --
4 MR. STINE: I have one more.
5 (S. Patten Exhibit No. 6
6 was marked for identification.)
7 BY MR. STINE:
8 Q. Could you identify this document?
9 A. Did you say my name?
10 Q. Can you identify the document?
11 A. It is a time card.
12 Q. Whose time card is it?
13 A. Mine.
14 Q. What are the dates?
15 A. December 1 through December 15, 2001.
16 Q. How many hours are listed, total hours
17 listed?
18 A. Eighty.
19 Q. Did you work any of the hours that are
20 listed for this time card?
21 A. No.
22 Q. Do you know who has ownership interest in
21
1 IIF?
2 A. No.
3 Q. Do you know whether your father and mother
4 have ownership interest?
5 A. I am not sure what that means, ownership
6 interest.
7 Q. The percentage of the company that they own,
8 if any, do you have any awareness of that?
9 A. I am not sure.
10 Q. What was your mother's role, if any, at IIF
11 during the summer of 2002?
12 A. She was the president.
13 Q. How often was she at corporate
14 headquarters -- how often was she in corporate
15 headquarters during that time?
16 A. When I was there? Never.
17 Q. What type of work would she perform for IIF
18 during that period of time, if any?
19 A. I am not sure.
20 Q. What type of work does she currently perform
21 for the company, if any?
22 A. I am not sure.
22
1 Q. Is your mother there on a daily basis while
2 you are at the office?
3 A. No.
4 Q. Do you have any communications with your
5 mother related to IIF business?
6 A. No.
7 Q. Did you know Mr. Tom Ubl during your time
8 with IIF?
9 A. Yes.
10 Q. How did you know him?
11 A. I worked there for a short time while he was
12 in the office.
13 Q. Did you have any interaction with him?
14 A. Just casual, good morning, how was your
15 weekend? talk.
16 Q. Did you have any idea what his position was
17 in the company?
18 A. No.
19 Q. Or his job responsibilities in the company?
20 A. No.
21 Q. Are you currently in school as well?
22 A. No.
23
1 Q. Are you working for IIF full-time?
2 A. Yes.
3 Q. Do you have any other businesses or side
4 business or other jobs that you work?
5 A. No.
6 Q. What about in the summer of 2002?
7 A. Yes, in the summer I worked as a nanny.
8 Q. Who did you nanny for?
9 A. Kim Trimble.
10 MR. STINE: This is three copies of the same
11 exhibit.
12 (S. Patten Exhibit No. 7
13 was marked for identification.)
14 BY MR. STINE:
15 Q. Can you identify this document?
16 A. It is an application for employment.
17 Q. Have you seen it before?
18 A. When I filled it out.
19 Q. And when did you fill this application out?
20 A. May 28, 2003.
21 Q. If I could direct you to the third page of
22 this document. If you look at the top portion of the
24
1 document, appears to be some directions. What do
2 those directions ask you to do?
3 A. Please provide information on your last
4 three employers, listing most-current position first.
5 Q. Why did you not list your prior employment
6 with IIF?
7 A. I don't know.
8 Q. Did anyone instruct you not to list that
9 employment?
10 A. No.
11 Q. Did anyone help you in filling out this
12 application?
13 A. No.
14 Q. Was this application -- was this an
15 application you filled out in conjunction with your
16 current job as a receptionist?
17 A. I am sorry.
18 Q. Is this the application for which you
19 received your current job as a receptionist?
20 MR. CANNI: Objection. That is confusing.
21 BY MR. STINE:
22 Q. You filled this application out in May of
25
1 2003?
2 A. Yes.
3 Q. Did you receive a job based upon this
4 application?
5 A. No.
6 Q. When were you hired for the job that you are
7 currently working?
8 A. Currently, today?
9 Q. Yes.
10 A. 2005.
11 Q. Why were you not hired at this time, in
12 2003, when you filled out this application?
13 A. I don't know.
14 MR. CANNI: Objection. I think you are
15 assuming she wasn't hired at that time.
16 MR. STINE: She just explained she wasn't.
17 MR. CANNI: Her answer was she wasn't hired
18 for her current position at that time.
19 BY MR. STINE:
20 Q. Were you hired based upon this application
21 in May 2003?
22 MR. CANNI: Objection again. I think you
26
1 are having some problems with the date of this. I
2 think you should ask her about that.
3 BY MR. STINE:
4 Q. In May 2003, were you hired based upon this
5 application by IIF?
6 A. No.
7 Q. Were you ever hired into IIF prior to 2005,
8 not including the summer of 2002?
9 A. No.
10 Q. Do you know why you were not hired in May of
11 2003, based upon this application?
12 A. No.
13 Q. Now, on page 3, you list Kim Trimble as a
14 current employee. How long had you been a nanny for
15 Kim Trimble?
16 MR. WORKMASTER: Objection. I don't believe
17 that is necessarily showing she is listing Kim
18 Trimble as her current employer.
19 BY MR. STINE:
20 Q. Was Kim Trimble your employee at the time
21 you filled out this application -- employer, in 2003?
22 A. No.
27
1 Q. When was the last time you had worked for
2 Kim Trimble as her nanny?
3 A. July 2002.
4 Q. To the best of your recollection, give me
5 the entire time period for which you worked for Kim
6 Trimble as her nanny?
7 A. February to July 2002.
8 Q. Were you working for Kim Trimble full-time
9 in that timeframe, February to July 2002?
10 A. Three days a week.
11 Q. What days of the week were there?
12 A. Monday, Wednesday and Friday, I assume, but
13 they varied.
14 Q. How many hours would you put in per day
15 usually?
16 A. Eight.
17 Q. Were you working in any other type of
18 capacity during that timeframe?
19 A. No.
20 Q. When did you conclude nannying for her, was
21 it beginning of July 2002, middle, end?
22 A. Beginning, middle of July.
28
1 Q. When did you start -- what month did you
2 start employment with IIF in the summer of 2002?
3 A. July.
4 Q. Did your job with IIF and your job nannying
5 overlap?
6 A. No.
7 Q. In the timeframe February 2002 through July
8 2002, were there any months that you weren't nannying
9 or any significant time period that you did not nanny
10 for Kim Trimble?
11 MR. CANNI: Objection to form.
12 If you understand the question, you can
13 answer it, but I didn't understand the question.
14 BY MR. STINE:
15 Q. I am simply asking, in that timeframe,
16 February to July 2002, was there any point where you
17 stopped nannying for a certain period of time?
18 A. No.
19 Q. To the best of your recollection, did you
20 nanny in the April 2002 timeframe for Kim Trimble?
21 A. Yes.
22 Q. Including the period between April 1 and
29
1 April 15 of 2002?
2 A. Yes.
3 Q. Do you have any relationship with Kim
4 Trimble outside of work?
5 A. Being her nanny and a friend, yes.
6 Q. When did you first meet her?
7 A. 2001.
8 Q. Was she working for IIF at that time?
9 A. I don't recall.
10 Q. How did you come to meet her?
11 A. I don't remember -- when she interviewed,
12 when the business was in my house.
13 Q. Did anyone at IIF ever ask you or inform you
14 that your babysitting hours, your nannying hours,
15 would be charged to any contract that they had with
16 the government?
17 A. No.
18 Q. Have you ever reported hours on your time
19 sheets that you did not work?
20 A. No.
21 Q. What about the hours I showed you in
22 Exhibits 3 through 6, did you work any of those
30
1 hours?
2 A. No.
3 Q. Do you have any awareness of any commercial
4 business that IIF performed in 2000 -- summer of
5 2002?
6 A. No.
7 MR. WORKMASTER: Objection. I don't think
8 she knows what a commercial business is.
9 BY MR. STINE:
10 Q. Do you understand what a commercial business
11 is?
12 A. No.
13 Q. Are you aware of any extramarital
14 relationship that your father has with Kim Trimble?
15 MR. CANNI: Objection. I think this
16 question has no other purpose than to embarrass and
17 harass the witness.
18 BY MR. STINE:
19 Q. You can answer.
20 A. No.
21 Q. Are you familiar with any of your
22 father's -- are you familiar -- does your father have
31
1 any other business interests that you are aware of?
2 A. I am sorry.
3 Q. Besides IIF, does your father have any other
4 businesses?
5 A. Yes.
6 Q. What businesses does he have?
7 A. AutoHouse Web.
8 Q. What is AutoHouse web?
9 A. Like a car dealership.
10 Q. Where is AutoHouse located?
11 A. In Manassas.
12 Q. Are there any other locations that you are
13 aware of?
14 A. No.
15 Q. What type of vehicles are sold there?
16 A. Any kind you want.
17 Q. What is your father's position in that
18 company?
19 A. I am not sure.
20 Q. Are you aware of any ownership interest he
21 has in the company?
22 A. I don't know.
32
1 Q. Do you know who else -- who his other
2 associates or colleagues are in the company?
3 A. Yes.
4 Q. Who is that?
5 A. James Hess and Mike Squire.
6 Q. James Hess and Mike --
7 A. Squire.
8 Q. S-Q-U-I-R-E?
9 A. I am not sure.
10 Q. Does AutoHouse Web have any online business
11 that you are aware of?
12 A. They have a Web site.
13 Q. Have you ever -- does your father attend car
14 auctions at times to buy or purchase vehicles?
15 A. Yes.
16 Q. Have you ever attended any car auctions with
17 him for the purpose of purchasing inventory?
18 A. No.
19 Q. Do you know where these car auctions are
20 located, where they take place?
21 A. Manheim.
22 Q. Any other locations that you are aware of?
33
1 A. No.
2 Q. Have you ever assisted your father in
3 transporting purchased cars from car auctions?
4 A. No.
5 MR. STINE: I have no further questions. Do
6 you?
7 MR. CANNI: No. We will review the
8 transcript, and if she has any edits, we will get
9 back to you.
10 (Whereupon, at 10:33 a.m., the taking of the
11 deposition was concluded.)
12 (Signature not waived.)
34
CERTIFICATE OF NOTARY PUBLIC
I, CATHY JARDIM, the officer before whom the
foregoing deposition was taken, do hereby testify
that the witness whose testimony appears in the
foregoing deposition was duly sworn by me; that the
testimony of said witness was taken by me
stenographically and thereafter reduced to a
transcript under my direction; that said deposition
is a true record of the testimony given by the
witness; that I am neither counsel for, nor related
to, nor employed by any of the parties to the action
in which this deposition was taken; and further, that
I am not a relative or employee of any attorney or
counsel employed by the parties hereto nor
financially or otherwise interested in the outcome of
the action.
______________________
Cathy Jardim
Notary Public in and for the
Commonwealth of Virginia
My commission expires:
July 31, 2010
35