Exhibit List PartyCal. Super. - 6th Dist.December 7, 2020Exhibit 1 Electronically Filed by Superior Court of CA, County of Santa Clara, on 2/2/2022 2:54 PM Reviewed By: R. Walker Case #20CV373916 Envelope: 8200179 20CV373916 Santa Clara - Civil xhibi SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SANTA CLARA DAVID CHAI, individually and on behalf of all others similarly situated, Plainti.f fs, vs VELOCITY INVESTMENTS, LLC, a New Jersey limited liabi.lity company; VELOCITY PORTFOLIO GROUP, INC., a Delaware corporation; and DOES 1 through 10, inclusive Defendants. Certipeed Copy ) ) ) Case No. ) 20CV373916 ) ) ) ) ) ) ) ) ) VIDEOCONFERENCE DEPOSITION OF DAVID CHAI Date and Time: Thursday, January 27, 2022 10:00 a.m. - 10:48 a.m. Location: Remotely (Via Videoconference) Reported By: Shirley Q. Casilan CSR No. 12361 Job No. 22940 SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SANTA CLARA DAVID CHAI, individually and on behalf of all others similarly 5 situated, Plaintiffs, vs 12 13 Defendants. 8 VELOCITY INVESTMENTS, LLC, a New Jersey limited liability 9 company; VELOCITY PORTFOLIO GROUP, INC., a Delaware 10 corporation; and DOES 1 through 10, inclusive ) ) ) ) ) ) ) Case No. ) 20CV373916 ) ) ) ) ) ) ) ) ) 15 17 REMOTE DEPOSITION OF DAVID CHAI, taken on 18 behalf of the Defendants, commencing from 10:00 a.m. 19 to 10:48 a.m., Thursday, January 27, 2022, via Zoom, 20 before Shi.rley Q. Casilan, CSR No. 12361, 21 22 23 25 ELITE COURT REPORTING (949) 829-9222 1 APPEARANCES OF COUNSEL: 3 FOR PLAINTIFF: CONSUMER LAW CENTER, INC. BY: RAEON R. ROULSTON, ESQ. 1435 Koll Circle Suite 104 San Jose, California 95112 (408) 294-4610 racon.roulstonlsjconsumerlaw.corn 9 FOR DEFENDANTS VELOCITY INVESTMENTS, LLC, and VELOCITY PORTFOLIO GROUP, INC.: 10 BARRON & NEWBURGER, PC BY: TIMOTHY P. JOHNSON, ESQ. 1970 Old Tustin Avenue 12 13 Second Floor Santa Ana, California 92705 (714) 832-1170 tjohnsonlbn-lawyers.corn 15 17 18 20 21 22 23 25 ELITE COLIRT REPORTING (949) 829-9222 I N D E X 2 WITNESS: DAVID CHAI 3 EXAMINATION BY: MR. JOHNSON 5 MR. ROULSTON PAGE 31 10 11 NUMBER 12 Exhibit 1 E X H I B I T S DESCRIPTION Notice of Deposition of Plaintiff David Chai PAGE 13 14 Exhibit 2 15 Complaint 10 16 17 QUESTIONS WITNESS INSTRUCTED NOT TO ANSWER: 18 PAGE LINE 20 29 14 21 22 23 INFORMATION REQUESTED: (None) 25 ELITE COURT REPORTING (949) 829-9222 P R 0 C E E D I N G S THURS DAY i JANUARY 2 7 f 2 0 2 2 10:00 A.M. - 10:48 A.M. -oOo- DAVID CHAI, 7 having been first duly sworn by the Reporter, was examined 8 and testified as follows: 10 EXAMINATION 11 BY MR. JOHNSON: 12 Q Good morning, Mr. Chai. My name is Tim Johnson. 13 I represent the defendants in this lawsuit that you'e 14 brought. 15 A Good morning, Mr. Johnson. 16 Q And what we'e doing here today is called a 17 deposition. That's a chance for me to ask you some 18 questions about the case and about you and the -- in the 18 course of preparing for this lawsuit. 20 Have you ever been through a deposition before? 21 A No. First time. 22 Q First time. Well, there's always -- you got to 23 do it once in your life. A It's okay if I take notes. 25 Correct? ELITE COURT REPORTING (949) 829-9222 1 Q Did you rely on your attorneys to prepare that 2 lawsuit? 3 A Yes. 4 Q Now, what do you -- you are a plaintiff in the 5 lawsuit. Is that correct? 7 A Yes. 8 Q You'e the per- -- yeah. You'e the person 9 fil- -- that -- in whose name the lawsuit was brought. 10 Correct' 11 A Correct. 12 Q What's your understanding as to your obligations, 13 if any, regarding the class members in the lawsuit? 14 A To review the information, the court detail 15 documents, attend any trials or depositions and basically 16 represent the class. 17 Q And what have you done to represent the class in 18 this lawsuit up to the present time? 19 A As I stated, I'e been involved with the 20 preparation, the review of the material, the documents, 21 attend any necessary meetings or depositions like this, 22 and any future ones. 23 Q What documents have you reviewed regarding the 24 litigation up to the present time? 25 A All the court documents that were submitted. For 22 ELITE COURT REPORTING (949) 829-9222 1 example, the one that Racon provided 2 Q Have you 3 A -- that's pertaining to the case. 4 Q You'e seen the complaint. Correct? 6 A Yes. 7 Q What other documents that you can recall that 8 you'e actually -- that were filed in the lawsuit? 9 A I don't recall the specific documents, but 10 they'e all in my court file. But it would be documents 11 pertaining to the case. I don't have the specifics as to 12 those documents or what they are. 13 Q Have you seen any of the -- there's something 14 that takes place during lawsuits that's called 15 "discovery." And that's when questions aze sent to the 16 other side and responses are received back. 17 Have you seen any of those question- -- any 18 questions that were sent to Velo- -- either the Velocity 19 entity, and if so, any responses that you'd -- that were 20 supplied by the Velocity entities to those questions? 21 A Yes. I saw the discovery documents, exchange of 22 information. Yes. 23 Q Is it your understanding that you are being 24 provided anv documents that are being processed in the 25 lawsuit on a regular basis by the attorneys'? 23 ELITE COURT REPORTING (949) 829-9222 1 A Yes. 2 Q And have you -- what input have you provided to 3 those documents, if any, or are you just simply reviewing 4 them? 5 A 1 am just reviewing them. 6 Q Now, there's a -- what is your understanding of 7 the next major hearing that's going to take place in this 8 lawsuit, if any? 8 A I do not know that -- what that would be. 10 Q Now, is it your understanding that there's an 11 issue regarding the net worth of Velocity -- of the 12 Velocity entities? Have you ever been involved with any 13 discussions in that regard? A No. 15 Q Do you have any understanding as to what effect 16 there would be on the class -- the claim by -- claims by 17 the class if it is proven that the Velocity entities have 18 a negative net worth? 19 A No. 20 Q Do you know even -- do you know what the 21 definition of "net worth" is in the context of this 22 lawsuit? 23 25 A Yes. Q And what's your understanding of that'? A Zn terms of what negative net worth is? ELITE COURT REPORTING (949) 829-9222 1 Q Qr what net worth is. 2 A The amount. of money the company or said person to 3 be worth. 4 Q And do you know -- have you ever had any 5 involvement with determining the net worth of a company? 6 A I'm sorry, Mr. Johnson, I didn't hear that entire 7 question. 8 Q Have you ever had any involvement with the 9 determination of an -- amount of net worth that a company 10 has? A No. 12 Q Do you have a plan as to how this lawsuit should 13 be resolved? 14 A No. 15 Q Are you leaving that up to the attorneys to 16 determine? 17 A Yes. 18 Q How much time do you think you'e spent on this 18 case up to the present time? This was -- from the 20 beginning of the case up to today. 21 A Ten-plus hours. 22 Q And can you break down how those ten hours were 23 spent? 24 A Combination of phone calls, reading information, 25 reviewing information. 25 ELITE COURT REPORTING (949) 829-9222 1 Q And what do you see as your obligations or duties 2 to the class members in this lawsuit? 3 A As I stated earlier, just being involved with the review of the court information, court documents, 5 requirements to attend meetings, depositions, representing 6 the class. 7 Q And how would you break down the decision-making 8 process between you and the -- and your attorneys'? That 9 is, what decisions do vou make? What decisions do you 10 rely on them to make? 11 A Ultimately, it's my decision, but I go off the 12 guidance and recommendations of my attorneys at the 13 Consumer Law Center. 14 Q Are there any specific decisions up to this point 15 in time that you have made regarding the progress of this 16 lawsuit? 17 A I do not recall specifically. 18 Q Have you been involved or been provided copies of 19 communications between the attorneys in the case, that is, 20 between the Consumer Law Center, your attorneys, and the 21 attorneys representing the defendants? 22 23 25 A Yes. Q And what have you seen in that regard? A Primarily, court documents, what's been filed. Q Have you seen the answers to the lawsuit filed by ELITE COURT REPORTING (949) 829-9222 1 for the exact details of that. 2 Q As you sit here today, do you have any knowledge 3 of whether or not a trial date was set? A As I said, I believe -- yes. From my 5 understanding, there is, but to the exact details, I have 6 to revert back to the court documents that I have on file. 7 Q When was the last time you looked at those court 8 documents that you have on file? 8 A This morning and yesterday evening. 10 Q And how long did you spend looking at those 11 documents? 12 A Yesterday evening, about 30 minutes. This 13 morning, about 15 minutes. 14 Q Do you remember what the documents were that you 15 looked at'? 16 A Not specifically. 17 Q I just want to follow up on something I asked 18 before. Have you made, actually, any decisions regarding 20 the progress or the -- regarding the handling of this 21 lawsuit yourself? 22 A Just approvals to proceed with specific actions 23 in regards to court filings. Q Okay. 25 Well, we -- I assume you approved the filing of 28 ELITE COURT REPORTING (949) 829-9222 1 the lawsuit. Is that correct? 3 A Yes. 4 Q Is there anything else that you can recall that 5 you actually approved before it was done by your 6 attorneys? 7 A I do not recall the specifics. 8 Q Generally, would it be fair to say that what you 9 have -- you'e left the actual procedures and the progress 10 of this lawsuit to your attorneys at this point? 11 A Yes. 12 Q Now, I want to just touch quickly on the retainer 13 agreement with your attorneys. What's your understanding of any obligations 15 regarding costs that may arise out of this lawsuit? 16 MR. ROULSTON: So I'm going to object on the 17 basis of attorney-client privileged. I'm going to direct 18 my client not to answer. 19 20 21 (Whereupon the witness was instructed not to answer.) MR. JOHNSON: The declaration that Mr. Chai 22 submitted in support of the motion for class certification 23 includes a paragraph 10: "I have arranged for my 24 attorneys to advance all costs of this action, including 25 notification to the class, while I remain responsible for 29 ELITE COURT REPORTING (9 I9) 829-9222 CERTIFIED STENOGRAPHIC REPORTER'S CERTIFICATION I, SHIRLEY Q. CASILAN, a Certified Shorthand 4 Reporter licensed in the State of California do hereby 5 certify: That prior to being examined, DAVID CHAI, the 7 witness named in the foregoing proceedings, was by me duly 8 sworn; That said proceedings were taken before me at the 10 time and place set forth therein and was stenographically 11 reported by me; that said proceedings are full, true, and 12 correct transcript of my shorthand notes so taken; that 13 the dismantling, unsealing, or unbinding of the original 14 transcript will render the reporter's certificate null and 15 vord. I further certify that I am neither counsel for, 17 nor related to any party to said action, nor in any way 18 financially interested in the outcome thereof. IN WITNESS WHEREOF, I have subscribed my name 20 this 1st day of February 2022. 21 22 23 25 SHIRLEY lg. CASILAN, CSK CA CSR No. 12361 WA CSR No. 3443 Expiration Date: 4/2022 35 ELITE COURT REPORTING (949) 829-9222