Kadiyala et al v. Pupke et al

Filing 153

ORDER ON ACCOUNTANT-CLIENT PRIVILEGE FRAUD EXCEPTION AFTER IN CAMERA REVIEW OF DOCUMENTS. Signed by Magistrate Judge William Matthewman on 9/9/2019. See attached document for full details. (kza)

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UN I TED STA TES D I STRI COU RT CT SOU TH ERN D I I O F FLO RI STR CT DA Ci l o.1 80732- V - a r / a t vi N 7Cl M r a M thewm a n RAV IK AD I LA ,i vi ly,a ast YA ndi dua l nd he as gnee ofCRED I UN I M ORTGA GE si T ON U TI TY BAN C,l C. an llnoi cor , LI N , li s p. FI LED BY Pl i if antf, D. C, S 29 2 1 EF 29 VS. ANGEL E. A NOBL E CL ERK U S DI CX SX M ARK JOHN PU PK E,etal, . s D oF/ A. w. . . . L - RB Def nda s e nt . / O RD ER O N A C CO UN TA NT- LI T PR I LEG E FR AU D EX C EPT I N A FTER J C EN VI O N CA M ERA R EVIEW O F D O CU M EN TS TH I CA U SE w a pr vi l be or t Cour upon t Pa tes J ntM oton A s ng t S s e ous y f e he t he r i ' oi i ki he Cour t Te t Thr t o s , ough l Cam e a Re ew , t Cl i s of Prvieg A s e t d A ga ns t n r vi he a m i l e s re i t he Pr d ci no Ce ti Do u n sg 1 0 . i matrwa rfre t t u desg e b Un td o u to f ran c me t DE 5 ) Th s te s eer d o he n ri n d y ie Stt sDititJ a e src udgeKe t A.M ara. eDE 359.On Se e be 5,201 t Co te er d a nne h r Se ptm r 9, he ur nt e Pa e ls Or e g a tn temoin rq e tn i c me a rve ( 1 2 . fn a t,M ak p re s d r rn ig h to e u sig n a r e iw. DE 5 1 Dee d n s r J Pupkea M ai MolyPupke(r ee nt' s te vi t ohn nd re l s fnda s' ubmitd, a humbcrvea vi emalt ) li nd a i,he docum e st t unde s gne s c m be s a r qui e nt o he r i d' ha r s e r d. 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I te ,hey a i he s ue o he t or es u i ' d ' Thepa te confre a deemi d apr edur f pr tonoft doc nt.( ris erd nd tr ne oc e or oduci he ume s DE 1 p.21 Afe Dee t couns r viwe t docume s c ms pr e t r ponsve 50, . tr fndans' el e e d he nt, ot el oduc d he es i docume st Pli ifsc el aongwih aprvie l 1 De e nt wihhed 1 pa so nt o antf ouns , l t i lge og. d. f nda s t l 09 ge f docu e s o t ba i ofa ount ntc i ntprvieg I O n A ugus 1 2019,D e e nt a s m nt n he s s cc a - le i l e. d t 8, f nda s l o pr edt Pli ifscouns llmie I ttQuikbooksrporst tweec e tdbyDee nt' oduc o antf' e i td ntl c i e t ha r r ae fnda s c el Dee nt'c ns d not howe r pr ouns ; fnda s ou eldi , ve , oduce t a t l t eda td Quikbooks he cua, mr ce c r t 1d.atp.3. epor s. l t Pa te 'moto r que tng i c r r e Pl ntf a gue t She e i no ba i n he ri s i n e si n ame a eviw, ai if r s hat s r s t ss he e f D e e nt t w ihhol a doc e orf l t tM r M il rha pr r or f nda s o t d ny um nt ie ha . le s oduc d i r s e n e pons t eo Pl i if s Su a ntf ' bpoe upon a c ai t ti i pr ec ed f om di c os e t Pl ntf K a ya a by t na l m ha t s ot t r s l ur o ai i f di l he a ou a -le prvie 'g 1 p. . or ngt Pl ntflt ac ou a -le prvie cc ntntcint i lge. DE 50, 3JAcc di o ai it he c ntntcint i lge ' b t e Panifa dteMilrDee d nswa fldo Ma 1 , 01 .DE 1 1. eehe, nM a l , 01 ewe n litf n h l fn a t s i n y 0 2 9 ( 1 )Th ra ro y 6 2 9, e e Plitf fldaS iulto fr d r f s sa wi Prj dc a t teMie Dee d ns( 1 4 . eCo rte anif i e tp ain o Ore o Dimisl t eu ie s o h l r fn a t DE 1 )Th uth n h l e trda Ore o Dimis l st teMilrDee da t o Ma 31201 ( 1 6. nee n d r f s sa a o h l fn ns n y , 9 DE 1 ) e doe not a y be us S a ntf i e s ppl ca e t i if nt nds t us t s m a e i t s pl o e hi t ral o how t t D e e n s w e e ha f nda t r i ve i a f a ' 1 nvol d n r ud. d. ' Def nda s on t ot erha cont nd t tt m a e i l i t prvie 1 a e pr ry e nt , he h nd, e ha he t r a s n he i l ge og r ope l w ihhel a prvie be us t doc e s w oul ne rha be n di cl e t t r pari , t d nd i l ged ca e he um nt d ve ve e s os d o hid tes a Dee t t ac ountntscint do notwih t wavet prvieg g 1 p.4) nd fndans he c a ' le s s o i he i l e. DE 50, . W ihrgadt t . ( c t e r o he qbb Quikbooks fl Defnda a srst tthi doc ti s ca i t t ) ie, e nt se t ha s s umen s pe iln ha t ac e sw a o y pr vi d t t M il D e enda s i a ad s r r e a t fl is l w a ne r c s s nl o de o he ler f nt n n vi o y ol nd he ie t e f s ve i e d t be di c os t t r pa te .Furhe m or , gi n t na ur of t f l i pos a nt nde o s l ed o hi d r i s t r e ve he t e he ie, t es n ad tonale de i r c e n t Def nda s' 1 dii vi nta y onc r o e nt . d. ' DISCU SSIO N Th Co r, stig i dv ri j rs ito , p iste s b tn ie lw o t e f r m e u t i n n iest u idcin a pl h u sa tv a f h o u t y e sae Fl i SeeMe a v Cl e tt, orda. s . ar ndon Nat l .Co. 799 F. 1 . ns , 3d 353, 1 ( 1h Ci.201 ) 358 1 t r 5; Mont zv. i ryMut FieI .Co.No.18Cl 80788ane f be t . r ns , - VRAR,201 W L 33 9 02308, t* ( D. a 3 S. Fl J y 23,201 .Secim 90. a. ul 9) tc 5055,FlrdaSt ut ,st f t t ac ountntcle prvie o i at es es orh he c a - int i lge. The s at e s at i rel t ut t es n evantpartt hat A cle ha a prviege t r f e t di c os a t pr s nta ot rpe s f om i nt s i l o e us o s l e, nd o e e ny he r on r di cl i t c e s of c i nta co m uni a i w ih an a ount ntwhen s osng, he ont nt ontde i l m c tons t cc a s h o he pe s l r d of t com m uni a i be a e t y w e e m a i t uc t r r on ea ne he c tons c us he r de n he r ndii of a ountng s r i es t t c i nt Thi prvie i l e ton cc i e v c o he le . s i l ge nc udes ot r he confde i li or a i n obt i by t a co a fom t cle f rt pur e i nta nf m to a ned he c unt nt r he i nt o he pos ofr nde i a countng ad c e r ng c i vi e. Fl.Stt j90. a a . 5055( .iA c 2) f ommuni ton bewee a ac ountnta t a c a ' cinti cai t n n c a nd he c ountnts le s (ontde il i i i noti e d t bedicos t t r pes ot rt n:(1 t et who c i nta' f t s ntnde o sl ed o hid rons he ha ) hos o m dicos e i i f t a e oft rndii ofac ountng s r iest t cle ;( l( t e s l ur s n urhernc he e ton c i e vc o he int or 2) hos r a ona y nec s a y f t t a m i s on oft c m uni ton.' F. . C.v.Ka an,201 W L e s bl e s r or he r ns s i he om ca i ' D L pl 5 547 4489,a *3 ( . Fl Se . 1 zolst tng Fl Stt j 90.055 1().çlo i ke t M D. a. pt 6, lcii a. a. 5 ( )c ) d- nvo ' t a oun a - i prvieg cours g r l r quie pa test de ons r t t a or m e i ned he cc t ntclent i l e; t ene aly e r r i o m t a e he f e nto e e e s a t a s pr de a prviege 1 t t e en t ta doc e sw e e w ihhe d fom l m nt nd o l o ovi i l og o he xt t ha ny um nt r t l r prduci 'TI Par Ct.9 LLC v CabotNo.16245 C1 201 W L 9988745,at* ( D. o ton. C k r , ' . , - 69- V, 7 9 S. Fl.J 9,201 ) a une 7. The e a e e e i t t a co a - le prvie Forexa pl t prvieg doe not r r xc ptons o he c unt nt c i nt i l ge. m e, he i l e s e s whe tgl s r i soft a c a wee s torobti d t e bl oradanyo t xit n sthe e vce he c ountnt r ough ane o na e i ne o c ommi orpln t co twha t cintkne ors d ha known wasac i orfa 'j t a o mmi t he le w houl ve rme rud.' 90. 4)a) Thi i t e pto r le onbyPli ifwhe t yar t tt prvie doe 5055( ( . s s he xce in eid antf n he gue ha he i lge s notpr ec t doc nt andQuikbooksfl a is ot the ume s c ie t sue. The Cour hasrviwe t doc nt lsed i t prvie l ( 1 1 .Thet t e e d he ume s it n he i lge og DE 50-1 wo l tr ( 00001 000022 ete s GK 9- and GK 000042- , t 43) he i ena i a ntr l ntke fm or ( 0001 - 000272) a t Quikbooksfl ( 000629)aec GK 71GK , nd he c ie GK r ommuni to b we n cains et e a a cou a , r M il r and D e e nt . t r or ,i i cl arf om a r vi w oft doc e s n c nt nt M . le , f nda s Furhe m e t s e r e e he um nt t t he w e e noti e d t be di cl e t t r pe s . ha t y r nt nde o s os d o hi d r ons Thus t onl w a t tPl i ifw oul , he y y ha a ntf d bee ild t pr ton oft docume si i t s r i e ofM r M ilrwe es ntte o oduc i he nt s f he e v c s . le r oughto obt i r aned t e bl ora d D e e nt t c m i orpl n t c m i fa o na e i f nda s o om t a o om t r ud. The e i a s a c t of c e 1 w i t El ve h Ci c t on t a i a i of t faud r s c r iy as a n he e nt r ui he pplc ton he r e e i t t ac ount ntcle pr vie The onl f de alc e cied by Pl i ifi t Pa te ' xc pton o he c a - i nt i l ge. y e r as t a ntf n he r i s m oton f ri came a r vi w i M uli i i o n r e e s tnatonalFor e drO bs t r v Ar ow Ai ,l . 662 F.Supp. c e we s . r r nc , 1 ( D. a.1 .nt tc e,hec tfundt tt a ount - intprvie di nota y 62 S. Fl 987)l ha as t our o ha he cc antcle i lge d ppl 4 be us i heve yhea t t Pli ifsca e' t tt defnda hadfa e l i ca e t t r r of he antf s 'was ha he e nt r udul nty nduce t d he pli ift e e i oaco r c . d. t163. a ntf o ntr nt nta t 1 a Addii ly,hec t ppea e t gi cr de t t tonal t our a r d o ve e nce o he pl ntf' a g e t tafi vis fl i t c e c d be pr ai i f s r um nt ha tda t ied n he as oul oved f l e,s t doc e s at a s o he um nt is mihte de eafa ont co t1 Thec te aned,Sl hieco de yt r i a sue g vi nc rud he ur. d. our xpli twl l nce dl hee s de rh of l alau hort i e r tng t s sa ut t s Cour c ude t t t pr e f c s at eg t iy nt m e i hi tt e, hi t oncl s ha he es nt a t co po t w ihi t l gi l i i e a f l w ihi t f a e e i Thi c l i i m r t n he e satve nt nt nd a l t n he r ud xc pton. s onc us on s bu t es ed by a ogy t sm ia prvieg . f A s e a ned bel ,t M uli i tr s nal o i l r i l es ' J. ' xpl i ow he tnatonalFor e d c r Obs rv r v. r Ai,I c e i f t l sm ia t t c s a ha e e s Ar ow r nc. as s ac ualy i l r o he a e t nd. The Co t has a s c i r Jel W e I . v N e a Gl s l ' I . N o. ur l o ons de ed d- n, nc . bul as ntl nc , 07- 26- V,2008 W L 11 223 C1 33331 ( D.Fl Feb.26,2008) whi t Cour dic rd upon 4 S. a. , ch he t s ovee c onduc i i tng ndepe nt r s r h. l Jel W e t c t ag ee t t t ac ount n - le nde e ea c n d- n, he our r d ha he c a t c i nt prvie i not abs ut a a knowl dge t e se i lge s ol e nd c e d he xit nce of t fa e pto l a # he r ud xce i n. d t 3. H owe r t cou tf ve , he r ound t t f a e e i di nota y unde t s ii f c soft ca e hat he r ud xc pton d ppl r he pec t c a t he s be us t pl ntf s va i fau cou s had be n dim is by t cou ton a numbe of ca e he ai if' rous r d nt e s s ed he r r o c so s 11Thec u t cie t iti ( d fn a t ofh a c u tn -le p iie eb s do c a in .6 o rde ln d o s rp a e e d n) te c o n a tcint rvlg a e n s t slmiedfa e pton. 1 I e etngl e whierj tngt pli ifsagume t t hi i t rud xce i ' d. ntr si y, ven l eeci he antf r nt ha ' t a cou a - i nt prvie di not a y, t c t cons de e t f a e e i a he c nt ntcle i l ge d ppl he our i r d he r ud xc pton nd s e i y i id t tt fa e e i woul a y i c e whe e a pli ifhad a lge e m ngl mple ha he r ud xc pton d ppl n as s r antf le d l tm at f aud cl m s i t com pl nt egii e r ai n he ai . The Cour tnds t tt c ts l i i M uli i ti ha he our ' og c n tnatonalFor e (rObs r e s i a ogi ng c f e v r n nal zi t f a e e i t t a t ne c i nt prvie w ih t f a he r ud xc pton o he tor y- le i l ge t he r ud e e i t t xc pton o he a oun a - int prviege t be co r c a r s cc t ntcle i l o r e t nd ea onabl e. de e ni wheher t t nni ng t he ci -ru e c p int t eatme -l n p i lg a p is tfis,heemus b ap i fce rme fa d x e to o h to yci t rvi e p le ,i jrt t r e e g t e rma a i s i t tt c i w ase how ng ha he lent ngage i c i i lorf a d n rm na r udul ntc e onduc when he s t oughtt ad c he vi e ofc ouns l t the w a pl nni s h c e , ha s a ng uc onduc w he he s t n oughtt a ce of c he dvi ouns ,ort the el ha c omm it ac i eorfa s equ t r c vi t be ftofc ted rm r ud ubs ent o e ei ng he ne i ouns lsa ce'l r Gr d e ' dvi .' n e an Jur I e tgaton,84 F. 1 1 ( 1hCi.1 ) Sse nd,t r mus beas ngt t y nv si i 2 2d 223, 226 1 t r 987 .i co he e t howi ha t a t r y' as it nce w a obt ne i f t a e oft c i i orf audul tac i t orw a he to ne s s s a s ai d n urher nc he rm nal r en tviy s cl el r lt d t i. 1 ; eealo Bl e v Bat i No.1 CV- 222,201 W L 1 os y ea e o t' d.s ' s ak . masan, 5- 81 7 0059 , t 251 a *1 ( D. a.Oct 5,201 , e tandr omme i ado e4 No.1 81 C1 201 W L 0 S. Fl . 7)rpor ec ndaton pt 5- 222- V, 8 3829803( D.Fl Aug.9,201 ) S. a. 8 Thi c e i m uc m or s m iart M uli i s as s h e i l o tnatonalFo c drObs r er t n t Je d- e l . re e v s ha o l W n, nc Hee,Pli ifha e iil alge fa agans Defnda si t Compl nt( 1 . o h r antf s xplcty le d r ud i t e nt n he ai DE ) Thr ug t a lga i i t Compl i ,Pl i if ha ma a prm a f i s he le tons n he ant antf s de i ace howi of fa a has ng r ud nd s fci nty a l ge t tt as i t nce oft a ount , r M il , a obt i i f t r nc o uf i e l le d ha he s sa he cc ant M . ler w s a ned n urhe a e f f a e a tviy orw ascl e y r l e t i. or over M r M il r t a ount ntf o who r udul nt c i t os l e at d o t M e , . le , he cc a r m m t doc he umen sa i s wer o a n wasf m e l a de e nti t sc e who wasal d t t t s ue e bt i ed, or ry f nda n hi as lege o ha pa tc pa e i f a wih Def nda s I s e st tt sc e i t exa tst ton a i pa e ve ri i t d n r ud t e nt . t e m ha hi as s he c iua i ntci t d byt fa e e i t t a c a - le prvieg Thus be us t f a e ptona is he r ud xc pton o he c ount ntc int i l e. , ca e he r ud xce i pple he e, he a cou a - le pr viege doe notpr ec t doc e sa i s . r t c nt nt c i nt i l s ot t he um nt t s ue z Ba e on t f egoi i i he e ORDERED t tDe e nt pr s d he or ng, t s r by ha f nda s oduc t Pl ntf a 1o e o ai if 1 f t docu nt pr vi d t t Cour f i c mearviw,i l ngt Quikbookstl,onor he me s o de o he t or n a r e e ncudi he c ie 2Th Cour notst tii notm a ngaGndi i t sOr t tt ac ount t M r M ilr andDefndan sw ee,i e t e ha t s ki ng n hi der ha he c an , . le , e t r n fc,enga d i faud.Tha i a is t twilbede deda ti .Rahe ,he Cour fndst t r i as ce at ge n r t s n sue ha l ci t ral t r t t i hat hee s um int prmaf ci f t ls i madebyPl ntf t e tbls t tt faudexc ton a isi t sc es ast de e t i a e acua how ng ai if o sa ih ha he r ep i pple n hi as o o f a De e nt 'c a m ofa count ntclen prviege. f nda s l i c a - i t il be or Sept ber 12,2019. A l pr f e em l oduc i s l be c pl t d pur uant t t t r s of t ton ha l om e e s o he e m he Pa tes StpultdPr e i Or r( 1 )e erdonJ ne11 201 ri ' i ae otctve de DE 21 nt e , 9. D N adO D R DiCabrti ) dyoSpmbr21,t sPl O E n R E E n hmeshs a f et e,09aWe a e tm Be c Pa m Be c Cot y i t Sout r D it i ofFl i . a h, l ah mt n he he n s rct orda UILLIA M M A TT EW M AN ' W UN I TED STATES M A G I STM TE J D GE U

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