241 8637KAR5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Q.

Lide - redirect

cautionary requirement may not exceed 30 percent of the nonfederal share of the total project costs. third. THE COURT: not just reading it. THE WITNESS: No, no, sir, I answered -- I believe you You remember that of your own knowledge, And I had said a

would find it -- I said I believed it was a third, so ... Q. Ms. Lide, you remember Mr. Rubinstein asking you questions

about multiple communications to NIST, including yourself, from Dr. Karron? A. Q. I do. After the grant was suspended, what was the reason that you

yourself stopped meeting with him? A. At the beginning -- we were instructed by our general

counsel to stop meeting with him after the suspension of the award. MR. KWOK: THE COURT: May I approach, your Honor? Yes, you may.

I am showing you what's been marked as Defendant's Exhibit

I believe 2, 3501-FF? DEPUTY COURT CLERK: THE COURT: That's B.

B as in boy.

Ms. Lide, Mr. Rubinstein asked you a moment ago to read a Can you read the e-mail in its

portion of that e-mail. entirety?

SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300

242 8637KAR5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. Yes. "Additionally please do not proceed with the audit It is extremely important that a bill not of it. Q. He read a portion of it. Can you read the entirety of that THE COURT: Lide - redirect Actually what he read -- he read a portion

e-mail? A. Certainly. The date is October 1, 2004. "The Department

of Justice has formally initiated a grand jury investigation regarding the NIST ATP award made to Computer Aided Surgery. In order to ensure that DOJ and the Inspector General's office are able to complete a thorough and timely investigation, we are requesting that all NIST" -- "all" is all in caps -- "NIST personnel cease contact with Computer Aided Surgery (CASI), Dr. Karron and all CASI representatives. Inquiries from those

parties should be directed to myself or SA Kirk Yamatani. Additionally" -Shall I continue?

resolution for CASI.

be generated for the funds that CASI misappropriated from the award. Please contact me if there are any further concerns or I look forward to working with all of you over the Thank you."

questions.

next few months. Q. A.

And who wrote that e-mail? Rachel A Garrison, special agent. THE COURT: For the Department of Commerce?

SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300

243 8637KAR5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. THE WITNESS: Commerce. Q. A. Q. A. And do you see Rachel Garrison in this courtroom? I do. Can you point her out? She is at the front table with a dark suit and a blue Lide - redirect Sorry. Yes, United States Department of

blouse under it. MR. KWOK: THE COURT: No further questions. Recross. Yes, your Honor.

MR. RUBINSTEIN: RECROSS EXAMINATION BY MR. RUBINSTEIN: Q.

Is it fair to say that -MR. KWOK: THE COURT: Objection. Let's rephrase the question.

Thank you, Judge. Are you -- is cofunding part of your job? Are you

involved in cofunding and advise on cofunding? THE COURT: I don't --

No, I don't believe it is. THE COURT: I don't see the relevance of this. He just asked her on cross. He

MR. RUBINSTEIN: showed her a document. Q.

Didn't you say when you first answered that question that

it was one third -- that one third? SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300