3.Ramzi Naber — Direct/Cross/Redirect
417 linesMS. DUGAN: State calls Ramzi Naber.
JUDGE WHEELER: Ramzi Naber, please.
MS. DUGAN: Oh, and Ms. Mascaro can be released, Judge.
JUDGE WHEELER: Okay. You're free to go about your business. Thank you.
YINDRA VELAZQUEZ MASCARO: Thank you.
JUDGE WHEELER: All right. If you could come up right here to the witness stand, please.
YINDRA VELAZQUEZ MASCARO: Thank you.
JUDGE WHEELER: Before you have a seat, we're going to swear you in. And please raise your hand and respond to the clerk.
whereupon, RAMZI NABER was called as a witness, having been first duly sworn, was examined and testified as follows:
JUDGE WHEELER: Please have a seat.
DIRECT EXAMINATION BY MS. DUGAN:
MS. DUGAN: Good afternoon. will you tell us your name and spell it for our court reporter, please?
RAMZI NABER: Ramzi Naber, R-A-M-Z-I, N-A-B-E-R.
MS. DUGAN: And do you live in the Miami area, Mr. Naber?
RAMZI NABER: I live in Hallandale Beach, Florida.
MS. DUGAN: Okay. what do you do for a living?
RAMZI NABER: I am a restaurateur.
MS. DUGAN: Okay. Now, did you used to own a club called Club Fate?
RAMZI NABER: Yes.
MS. DUGAN: what years did you own Club Fate?
RAMZI NABER: Oh, you're really testing my memory here. I think it's been a good eight -- seven, eight years since I had it. So it's 2022, 2014; 2012 to 2014.
MS. DUGAN: Okay. What was your role as the owner?
RAMZI NABER: Managing the facilities, scheduling staffing, purchasing, marketing, promotion. All of it.
MS. DUGAN: Okay. When you were -- when you owned it, would you also hire and fire employees?
RAMZI NABER: Correct.
MS. DUGAN: And what about financial, paying bills, doing the cash outs, who would do that?
RAMZI NABER: Either myself or one of the, like, managers.
MS. DUGAN: Okay. Just a moment.
what city is Club Fate in?
RAMZI NABER: Hallandale Beach inside Gulfstream Casino.
MS. DUGAN: And what is -- is Gulfstream Casino in Gulfstream Park?
RAMZI NABER: Gulfstream Park and Casino is one in all. It's a racetrack, casino and shopping center with various restaurants and shops, clothing facilities.
MS. DUGAN: Okay. And is Hallandale kind of like in between Fort Lauderdale and Miami?
RAMZI NABER: Yeah, it's between -- Hollywood is the next city and Aventura. But, yeah, Miami and Fort Lauderdale is the bigger of both, yes.
MS. DUGAN: Now you said today that it might have been 2012 to 2016 (sic) that you owned the club? You had a deposition in this case, right, where defense and the State had an opportunity to ask you questions?
RAMZI NABER: Yes.
MS. DUGAN: Okay. And that was in, let's see, January of 2022?
RAMZI NABER: Correct.
MS. DUGAN: Okay. I'm looking Page 18, Lines 8 and 9. I know you were asked a lot of questions that day. In that deposition, looking at Lines 8 and 9, you were asked: when did you sell Club Fate? Did you say 2016?
RAMZI NABER: Correct.
MS. DUGAN: Okay. So would 2012 to 2016 be more accurate?
RAMZI NABER: Correct.
MS. DUGAN: Okay. Thank you.
You said that you would do the cash outs at the time. Was the -- was your club at the time, most of the sales were cash or credit card?
RAMZI NABER: Club Fate was 90 percent, I would say, credit cards versus cash. And the employees literally were carrying their own banks. So they would cash out the guests if there was cash involved. And they cash out at the end of the night with me with surrendering how many credit cards and how many cash vouchers they had. And they cashed out at the end of the night. But 90 percent of the sales were credit cards.
MS. DUGAN: Okay. So, if 90 percent of the sales are credit cards, the servers, the bartenders, they're going to come cash out with you at the end of the night, you'll see how much they're owed --
RAMZI NABER: Correct.
MS. DUGAN: -- of their tips from their credit card sales; right?
RAMZI NABER: Correct.
MS. DUGAN: And then were they paid that through a paycheck?
RAMZI NABER: They got the credit cards on their paycheck. And whatever cash tips they received they kept that night.
MS. DUGAN: Okay. And a lot of the people -- a lot of times people don't tell you how much cash that they received; right?
RAMZI NABER: No, unfortunately, this business is -- like, that's the way it is.
MS. DUGAN: Right. But your -- the cash that your club was -- the amount of cash sales that y'all were doing at the time was only about 10 percent of your total sales?
RAMZI NABER: In total, yes.
MS. DUGAN: Okay. SO were you super concerned with the servers keeping the cash that they got and not reporting it to you since it was such a small percentage of your business?
RAMZI NABER: No, the percentage of the cash sold by the employee is definitely paid to us 100 percent. The unknown part was cash tips the employee is making off of that cash sale.
MS. DUGAN: Right.
RAMZI NABER: So we always declared 100 percent of the credit card tips to ADP or the payroll company so it would be -- this is so they can be taxed accordingly, you know, from their pay.
MS. DUGAN: Right, right. But I'm just saying sometimes they might not tell you exactly how much cash they were tipped, but --
RAMZI NABER: Yeah, they would almost 100 percent of the time never tell you how much cash they got.
MS. DUGAN: Right. But I guess my question is, but -- you knew that, but at the same time, the total amount of cash business y'all are doing is such a small percentage --
RAMZI NABER: Correct.
MS. DUGAN: -- of your total business?
RAMZI NABER: Correct.
MS. DUGAN: That's not going to make or break you?
RAMZI NABER: No, no.
MS. DUGAN: Now, tell me about Gulfstream Park, what's that like?
RAMZI NABER: Gulfstream is a racetrack with a casino. That's the main attraction there. The shopping center, you know, it has multiple different shops, including some chain operations such Texas de Brazil, Brio, ill Forks.
Unfortunately through the years, Gulfstream has not done a good job in taking care of the -- the people that are leasing from them. And so a lot of these restaurants have closed through the years. what's left is probably nominal compared to the number of businesses that were there initially.
MS. DUGAN: So what about -- go ahead. I'm sorry.
RAMZI NABER: It's just a very transient place. It's in and out. Just people go in and go out. It's not -- it wasn't a popular destination, except for the casino part.
MS. DUGAN: Is it a high-end area?
RAMZI NABER: No.
MS. DUGAN: Are the -- I guess is it a more white collar, blue collar area as far as the people that frequent?
RAMZI NABER: The racetrack attracted both. You have the white collar and the blue collar. The white collar mostly are the horse owners. And, you know, the blue collar are the ones that are betting on it. But it had both.
MS. DUGAN: would the horse owners, the white collar crowd, go to Club Fate?
RAMZI NABER: No.
MS. DUGAN: You've told me about a couple of the restaurants just now that were in Club Fate. And you mentioned some like national chains like Brio, you said?
RAMZI NABER: Brio is gone, but used to be there.
MS. DUGAN: So Brio is like a national, high-end, Italian restaurant chain?
RAMZI NABER: Yeah, yeah.
MS. DUGAN: Laredos, did that used to --
RAMZI NABER: Laredos, ill Forks is owned by the same chain. They went out of business there, too.
MS. DUGAN: Laredos is kind of like a high-end Mexican restaurant?
RAMZI NABER: Mexican, yeah. And ill Forks was a steakhouse.
MS. DUGAN: And so those national chains all brought nice restaurants there, but they ended up failing, ended up going out of business?
RAMZI NABER: Correct.
MS. DUGAN: Okay. And I left a couple of items on the witness stand that I showed to the defense right before you came on. That's going to be 86E through H. Do you see 86E through H?
RAMZI NABER: Yes.
MS. DUGAN: Do you recognize those to be showing the location of Club Fate, and, also, the front door of Club Fate?
RAMZI NABER: Correct.
MS. DUGAN: Okay. Are those true and accurate depictions of where it's located and what it looks like from the outside?
RAMZI NABER: Yes.
MS. DUGAN: At this time, I'd move 86E through H into evidence.
JUDGE WHEELER: Any objection?
MR. DECOSTE: No, Your Honor.
JUDGE WHEELER: All right. Exhibit 86E through H, is that what you're saying?
MS. DUGAN: Yes, sir.
JUDGE WHEELER: All right. It will be admitted.
MS. DUGAN: Thank you.
(State's Exhibit No. 86E - 86H received in evidence. )
MS. DUGAN: Permission to publish?
JUDGE WHEELER: You may.
BY MS. DUGAN:
MS. DUGAN: All right. Just to get us oriented here, down here at the bottom of 86E, that's Miami? Yes?
RAMZI NABER: Yes.
MS. DUGAN: Okay. Up here towards the top, I guess I just want the last, but that likes like Fort Lauderdale to you?
RAMZI NABER: Correct.
MS. DUGAN: And Club Fate is here in the middle, kind of close to the Hollywood?
RAMZI NABER: Correct.
MS. DUGAN: Closer-up view of where Club Fate is in that area?
RAMZI NABER: That is correct.
MS. DUGAN: And so is this whole area right here Gulfstream Park?
RAMZI NABER: Yes, it is.
MS. DUGAN: And this is a closer -- an even closer view of Gulfstream Park and Club Fate's location in that park?
RAMZI NABER: Correct.
MS. DUGAN: And that's right here up at the red?
RAMZI NABER: Right.
MS. DUGAN: And then what do we see in 86H?
RAMZI NABER: The elevator entrance to the second floor where Club Fate was, on top of Yard House.
MS. DUGAN: Okay. So if you wanted to enter Club Fate, ora customer would, they would come in the front door here and go up an elevator --
RAMZI NABER: They would take the elevator up that brings them to the second floor. Those small two windows are actually Club Fate. The large window is the lobby of the elevator area.
MS. DUGAN: Okay. And this restaurant is not connected to Club Fate?
RAMZI NABER: No, no. It's a different chain.
MS. DUGAN: And that looks like kind of the service entrance maybe for that restaurant? It's not --
RAMZI NABER: I think it was the kitchen delivery area, yeah.
MS. DUGAN: Okay. So when Club Fate first opened, what was your vision for it?
RAMZI NABER: when I first opened it, I partnered with a famous DJ that lives in Miami. His name is Markus Schulz. He's an electronic dance music icon in Miami, originally from Germany. So he partnered with me on the project to open an electronic dance music concept in Gulfstream. Unfortunately, you know, it took us about a year of keep funding it that it wasn't ~working.
So we tried to sell at that point, several attempts. Gulfstream denied a couple of sales because we brought a Brazilian concept and they had Texas de Brazil. So they couldn't do it because of the concept that we were bringing in, the people that were buying it.
I ended up switching it to a hip-hop nightclub, which is playing, you know, urban music and that's what kept it open through the years.
MS. DUGAN: Now --
RAMZI NABER: But it was not -- it was not a successful venue. I ended up buying my partner out and I ended up just walking away almost with minimal investment money back. I sold half to one of my promoters who's operating it since that year until now. with COVID and all that, you know, it was closed for a couple of years, by order of the governor. So I haven't even gotten my money out of it yet.
MS. DUGAN: Okay. was it turned into a hip-hop club after you told it in 2016?
RAMZI NABER: The last year or maybe year-and-a-half of me operating it, it was a hip-hop club. So I would say 2014 and a half to 2016 it was hip-hop for sure.
MS. DUGAN: Okay. Now, was it popular when you first opened it? Did y'all do well at first?
RAMZI NABER: It never did well. I mean, compared to what our expectation was, no.
MS. DUGAN: I guess the first two weeks, did y'all have more people than you had the rest of the time?
RAMZI NABER: we did because Markus is very famous. So he played for our club for free as a result, because I couldn't afford to have him play there. You know, he gets paid 100,000 per event. So he played a couple of times at the opening night and a month later. That period, yes, there was.
MS. DUGAN: So the first month when it first opened and the DJ is there, it -- y'all got some good business at that time?
RAMZI NABER: Yeah, on the grand opening and so forth, yes.
MS. DUGAN: But he didn't continue playing there?
RAMZI NABER: No.
MS. DUGAN: Okay. And then after that, did it continue to do ~=well or it just kind of fizzled out?
RAMZI NABER: Just kind of like started dropping slowly.
MS. DUGAN: Okay. Did any -- did y'all have celebrities that would come in?
RAMZI NABER: No celebrities, but we had some other named DJs play there like David Tort and other names that are in the industry. And, you know, those nights there will be a little bit of action, but nothing really what we expected. It barely covered the cost of the DJ at that point because they're very expensive.
MS. DUGAN: Did you have high-end clientele that would come in and spend a lot of money?
RAMZI NABER: I would say it was mediocre. It wasn't high-end, no.
MS. DUGAN: Okay.
RAMZI NABER: I mean, Club LIV in Miami is high-end. wWe were nowhere near that. So it's not high-end, no.
MS. DUGAN: Okay. And did y'all have bottle service there?
RAMZI NABER: we did.
MS. DUGAN: Okay. About what was the cost of the bottles?
RAMZI NABER: 150 I would say, 150 to 200, depends on the bottle.
MS. DUGAN: About $150 a bottle?
RAMZI NABER: A bottle, yeah.
MS. DUGAN: Maybe up to 200 a bottle?
RAMZI NABER: Yeah.
MS. DUGAN: Okay. Did you ever have girls that did liquor promotions there?
RAMZI NABER: I don't know what you mean by liquor promotions.
MS. DUGAN: Like maybe have a type of liquor they're promoting and offer people a taste of it?
RAMZI NABER: If that would have happened, it would have been sponsored by a liquor company, not my girls. And it would be done by models that would be hired directly to sell that item or to pass it along. And it's done through -- the Florida law prohibits the sale of, like, promotional items. So the guy has to buy the bottle from me. we can't give it away.
MS. DUGAN: Okay.
RAMZI NABER: So the company would buy two bottles and they'll] give samples to the guests, but they hire models to do that. It won't be our staff.
MS. DUGAN: Okay. So your staff would have been made up of, what, bartenders and server?
RAMZI NABER: Just the two bartenders behind the main bar and the servers. And at that point when we opened, we also had sushi in the front. So we had a bar in the front that was serving sushi. So there would be cooks, bartenders and servers.
MS. DUGAN: How many servers and bartenders? You said two bartenders. How many servers would work at a time?
RAMZI NABER: we never had more than six on a weekend. That would be the max.
MS. DUGAN: About how often did your employees work? Each employee, how many nights per week?
RAMZI NABER: Yeah, I mean, we didn't work -- we didn't work anybody more than four nights, max. I don't even know if we opened Mondays. I'm trying to remember. But most of the business came on Friday and Saturday. And then one busy night, a weekday night, would have been like ladies night wednesday or Thursday. So it would be like three nights the majority is when we would need the most of the staff. The rest of them could be ran by two girls on the floor because it wasn't that busy.
MS. DUGAN: Now about how much did your employees -- how much were they taking home a week at that point?
RAMZI NABER: I think everybody is averaging about a thousand a week.
MS. DUGAN: Okay. I asked you earlier about the deposition. Looking at Page 11 through -- 11 -- Page 11, Lines 13 through 19.
JUDGE WHEELER: Mr. DeCoste.
MR. DECOSTE: Improper refreshment. The witness didn't say he didn't remember.
JUDGE WHEELER: well, are you refreshing his recollection or are you impeaching him?
MS. DUGAN: Impeaching.
JUDGE WHEELER: All right. You may proceed.
MR. DECOSTE: Objection.
JUDGE WHEELER: Overruled.
MR. DECOSTE: Same as the prior objection as to impeaching your own witness.
JUDGE WHEELER: Overruled.
BY MS. DUGAN:
MS. DUGAN: I'm going to show you Page 11, Lines 11 through 19. If you could just read that to yourself.
RAMZI NABER: 11 through 19?
MS. DUGAN: I'm sorry. Start here.
RAMZI NABER: Seventeen?
MS. DUGAN: Yes, 18 and 19.
RAMZI NABER: Okay.
MS. DUGAN: That's all.
RAMZI NABER: Thank you.
MS. DUGAN: All right. So in that statement, you said that everybody in the bar was averaging about five to $600 a week?
RAMZI NABER: Yeah. I think there we were talking about tips.
MS. DUGAN: Okay.
RAMZI NABER: So if you add up the tips and the hours, it's going to be a little bit higher. But it depends on how many shifts you worked. If you worked -- if you go further, I think we said about 200, $250 a shift was like a good day for them. So it depends on how many shifts you had. So if you had four shifts, you're making 800. If you have three shifts, you're making 600. So it depends on how many shifts you had. So, I mean, you have to put it in the content of the rest of it. But, you know, it was 200, $250 per employee a night was a good night.
MS. DUGAN: Okay. Thank you for clearing that up.
So a good night for your employees was 200 to 250 a night. Depending on how many nights a week you worked, you could --
RAMZI NABER: Yeah, and how long you worked, yes.
MS. DUGAN: -- could get up to a thousand a night [sic]. If you ~~ only worked two nights, it might be more like --
RAMZI NABER: If you work four nights, yes. If you work three nights -- but the majority was just like the weekends.
MS. DUGAN: Right.
RAMZI NABER: when you needed the entire staff, it would be those three nights; Friday, Saturday and one weeknights.
MS. DUGAN: Gotcha. And if you worked two nights -- like, maybe say you only worked two nights a week, Friday and Saturday, and you made maybe 200 to 250 a night, you were making 400 to 500?
RAMZI NABER: 400 to 500, yeah.
MS. DUGAN: That was average?
RAMZI NABER: Yeah.
MS. DUGAN: I guess -- I mean, y'all obviously had a bar in your club?
RAMZI NABER: Correct.
MS. DUGAN: And you said you had sushi in the front.
what was the rest of the club like? what was the layout?
RAMZI NABER: It was a booth, one large booth in the front and there was one, two, three -- eight booths in the main club area and the rest is stand up. And there was some seating in the front on high tops for the sushi area.
MS. DUGAN: So sushi high tops. were you --
RAMZI NABER: And we had a patio. I'm sorry, we had a patio.
MS. DUGAN: Okay. Thank you.
You could sit at a high top in the sushi area, go to the bar, or pick one of eight booths, or go to the patio?
RAMZI NABER: Yeah. I mean, if you came to eat, you would have sat at the high tops or the patio, or if you were a smoker. But the club itself, the eight big booths and the large booth in the front was for the club service, if you will. If you were opening a bottle or, you know, listening to the music.
MS. DUGAN: And do you remember a woman named Katherine Magbanua who worked at Club Fate when it was open?
RAMZI NABER: I do.
MS. DUGAN: Okay. How long did she work at Club Fate for?
RAMZI NABER: It was not a long period. Like I said, she was like a shooting star. She wasn't one of those that was there for a while. TI believe it was months. If I had to guess, I would have said maybe three months.
MS. DUGAN: Okay. "Shooting star" meaning came quickly, left quickly?
RAMZI NABER: Yes.
MS. DUGAN: And what was her job at Club Fate?
RAMZI NABER: A cocktail server.
MS. DUGAN: Do you have any reason to believe she would have made more or less than the 200 to 250 a night that you told us about for average for your employees?
RAMZI NABER: I don't believe so.
MS. DUGAN: Do you remember the circumstances surrounding her leaving, why she left?
RAMZI NABER: Not really.
MS. DUGAN: Did you keep employee records when you owned the club?
RAMZI NABER: we did.
MS. DUGAN: And do you still have them?
RAMZI NABER: No.
MS. DUGAN: And why not? what happened?
RAMZI NABER: Initially, all of the paperwork that was in boxes in the Club Fate in the office was destroyed, water damaged. There was a major leak from the hurricane, from the roof that came straight into the office area, and we had to throw everything in the garbage that was in the office after the insurance. And then the Gulfstream staff, the maintenance staff, came and repaired the roof and -- you know. But whatever records we had, would have been with the payroll company or that was in the office. And whatever was in the office is gone.
MS. DUGAN: Okay. was the office the only part of the club that was damaged?
RAMZI NABER: The major leak was by that area, yes.
MS. DUGAN: Okay.
RAMZI NABER: And there was damage over Yard House from our area as well, but it's in the same vicinity.
MS. DUGAN: where were the employee records in relation to where the leak was?
RAMZI NABER: Right under.
MS. DUGAN: Okay. I just wanted to clear up one thing. were your servers paid like an hourly tipped employee wage?
RAMZI NABER: Correct.
MS. DUGAN: So the amount that your employees made, they would make obviously their hourly tipped employee wage. would they get that every month in a paycheck?
RAMZI NABER: It was biweekly. And if I recall, it was around -- at that time, the minimum wage tipped employee was around maybe five, $5.03 or something like that. But it barely covered the taxes on the credit cards, you know, from the credit card. we claimed 100 percent of the credit card tips. So, you know, it just offsets it kind of.
MS. DUGAN: Gotcha. So the average of two to 250 a night you're talking about, that's how much the employee was like tipped that night that they're taking home?
RAMZI NABER: Yes.
MS. DUGAN: Okay. From -- from your sales?
RAMZI NABER: correct.
MS. DUGAN: Okay.
MS. DUGAN: That's all I have. Thank you.
JUDGE WHEELER: Cross examination?
MR. DECOSTE: Sure.
CROSS EXAMINATION BY MR. DECOSTE:
MR. DECOSTE: I'm sorry, that was not quiet.
Mr. Naber, how are you?
RAMZI NABER: I'm good. How are you?
MR. DECOSTE: Doing well. Doing well. This shouldn't be too long.
Now you referenced a moment ago Club LIV.
RAMZI NABER: LIV, yeah.
MR. DECOSTE: Now for the jurors here, if you could describe what Club LIV is? You compared it to your club. Club LIv is the club; right?
RAMZI NABER: The club, yeah.
MR. DECOSTE: It's run by David Grutman with Groot Hospitality and it is the model that all other nightclubs hope to have.
RAMZI NABER: Correct.
MR. DECOSTE: A capacity of, what, 10, 20,000?
RAMZI NABER: No.
MR. DECOSTE: I could be way off on those numbers.
RAMZI NABER: Yeah, you're way off on that. (Laughter.) LIV -- LIV's capacity may be 2,000.
MR. DECOSTE: And that's within an amphitheater at the Fontainebleau Hotel where the likes of Frank Sinatra used to sing?
RAMZI NABER: It used to be that, yeah.
MR. DECOSTE: They have the most sophisticated sound equipment and lighting equipment?
RAMZI NABER: Correct.
MR. DECOSTE: Now in comparison to a club like that, Fate is small.
RAMZI NABER: Very.
MR. DECOSTE: If you compare it to your local bar, Fate is?
RAMZI NABER: Comparable to a local bar.
MR. DECOSTE: Now it's not a sleepy bar with one regular at the end of the bar, nobody else in there; right?
RAMZI NABER: we have plenty of nights like that. (Laughter.)
MR. DECOSTE: But you also --
RAMZI NABER: Trust me, if it works, it works. when it doesn't work, it doesn't work.
MR. DECOSTE: You would have kept the club if it were doing that well; right?
RAMZI NABER: If it was good, I would still be there.
MR. DECOSTE: But you would agree with me that although there weren't Club LIv nights with the likes of all celebrities and athletes, you did have your nights?
RAMZI NABER: when we first opened, yes.
MR. DECOSTE: All right. Now let's talk about your communications with law enforcement. You were contacted by them after you sold the club; right?
RAMZI NABER: I believe so.
MR. DECOSTE: And I know your memory is a little bit off on this, but do you believe that it was right at the beginning of the pandemic in March of 2020?
RAMZI NABER: I think it was prior to the pandemic.
MR. DECOSTE: All right. So my understanding, and correct me if I'm wrong, there's only two times that law enforcement contacted you?
RAMZI NABER: Correct.
MR. DECOSTE: And you remember that the FBI was mentioned; correct?
RAMZI NABER: Correct.
MR. DECOSTE: And they only contacted you by phone?
RAMZI NABER: Correct.
MR. DECOSTE: And the information that you were able to convey to them -- actually, strike that. Let me give you a different question.
would you rely on the memory of the law enforcement officers as to when they spoke to you?
RAMZI NABER: Me?
MR. DECOSTE: Yeah. Should we ask them instead of going with your memory of when the communications were?
RAMZI NABER: I think you're better off going with them, yeah.
MR. DECOSTE: Okay. So you talked to them and they asked you questions about Ms. Magbanua. And you'd agree with me that you vaguely remember, using your words, vaguely remember her employment and the details about it?
RAMZI NABER: Correct.
MR. DECOSTE: All right. Now, you were asked by Ms. Dugan the amount of time that Katherine worked there. You would agree with me that it was months that she was there?
RAMZI NABER: I said it was months.
MR. DECOSTE: And even that is an estimate?
RAMZI NABER: Correct.
MR. DECOSTE: Because you vaguely remember it?
RAMZI NABER: Correct.
MR. DECOSTE: One second, Your Honor. If I could have one brief moment?
One second, Mr. Naber. I'll be right back.
RAMZI NABER: Take your time.
MR. DECOSTE: Thank you. May I approach, Your Honor?
JUDGE WHEELER: You may.
BY MR. DECOSTE:
MR. DECOSTE: Mr. Naber, I'm showing you what's been premarked as Defense 18. You know what that is; right?
RAMZI NABER: (Nods head.) Yeah.
MR. DECOSTE: That's a photograph of Katherine Magbanua?
RAMZI NABER: Yes.
MR. DECOSTE: And that's a photograph of Katherine Magbanua as she looked around the time that she worked for you?
RAMZI NABER: Correct.
MR. DECOSTE: And that fairly and accurately depicts the employee that you had during that time?
RAMZI NABER: Correct.
MR. DECOSTE: Thank you.
MR. DECOSTE: Defense offers in what's been premarked as Defense 18.
JUDGE WHEELER: Any objection?
MS. DUGAN: No, sir.
MR. DECOSTE: Permission to publish?
JUDGE WHEELER: It will be admitted as Defense 18.
(Defense's Exhibit No. 18 received in evidence.)
BY MR. DECOSTE:
MR. DECOSTE: Okay. So Mr. Naber, I want to make sure -- you're going to have to explain this to me because even I was a little bit confused. So your employees are making, on average -- and, again, these are rough estimates; correct? Is that correct?
RAMZI NABER: Correct.
MR. DECOSTE: Five to $600 per week?
RAMZI NABER: I would say so.
MR. DECOSTE: Now, and walk me through this. And I apologize if I'm confusing your words.
So I come into Club Fate and I get bottles, I get sushi, whatever it is, and I pay on my credit card and I tip on my credit card.
RAMZI NABER: Correct.
MR. DECOSTE: That's the information that you as the owner know about. And then you pay out the tip portion to the employee?
RAMZI NABER: Correct.
MR. DECOSTE: Now, if I come in there and I use my credit card and I buy a bunch of stuff. And then my buddy goes, you know what, you paid for the sushi, you paid for the booze, let me pay the tip in cash. You don't know about that; right?
RAMZI NABER: Correct.
MR. DECOSTE: There is a good chance you don't know about it?
RAMZI NABER: For sure.
MR. DECOSTE: And that's standard in the industry; right?
RAMZI NABER: Correct.
MR. DECOSTE: with respect to tips?
RAMZI NABER: Correct.
MR. DECOSTE: Now, if I come in and it's just cash and I pay for whatever it is I'm buying in cash and I tip in cash, those tips as well, too, you as the owner, you wouldn't know about?
RAMZI NABER: I wouldn't know the cash part of it, no. I know about the cash sale, but I don't know about how much the person left them.
MR. DECOSTE: You know the cash sale because you've got to ring up the drinks and ring up --
RAMZI NABER: well, they can't get the drinks without a ticket, you know, printing at the bar or at the food station. So I will know it was rang up.
MR. DECOSTE: So that five to 600, that could be put in the credit card pot. But we don't know the cash amount?
RAMZI NABER: we don't know the cash amount tip the employee is making off a cash sale, that is correct.
MR. DECOSTE: So if it's one, two, $300 in tips, it would be the five to $600 plus any other cash tips?
RAMZI NABER: If that's the case, yes.
MR. DECOSTE: Now, is it not encouraged in the industry for servers to get cash tips because it offsets the tax liability for the business?
RAMZI NABER: Encouraged -- all restaurants prefer cash, of course, over credit. However, in the nightclub business, especially in that area, until it's now -- even my restaurant now, the cash sales does not exceed 10 percent of the gross sales of the restaurant. This day and age, cash has become -- you know, it's a commodity that's not available in our restaurant business. It's all credit cards right now.
MR. DECOSTE: Eight years ago, though?
RAMZI NABER: Now if the clientele was, for example, hip-hop, that formula switches completely from 90/10 to possibly, you know, 60 percent cash, 40 percent credit cards. So it switches. It depends on the concept that you have. But as an electronic dance music nightclub that we were, we knew it was going to be 90 percent credit cards.
MR. DECOSTE: You would agree with me, though, that there was a little bit more use of cash back in 2014 than there is now in 2022?
RAMZI NABER: Yeah. I would say that, yeah.
MR. DECOSTE: All right. And the point that we're trying to make, I'm not trying to change your 90 percent, but you as the owner, you don't know. It's five to 600 average, plus cash tips?
RAMZI NABER: Yeah, I don't know what they made in cash tips. That is true.
MR. DECOSTE: Now, the records. That's my last topic, the records that you had.
RAMZI NABER: The records, yeah.
MR. DECOSTE: There were employee records for Katherine Magbanua. No doubt about that; right?
RAMZI NABER: well, we had to do -- she would have had to fill out her w2s; her, you know, 1099; her, you know, picture; her Social Security; a picture of her ID, it has to be in her file. All that was in the office.
MR. DECOSTE: Now that would also have the information as to what the -- what you're giving the rough estimates on, the five to 600. we would be able to know the exact amounts; right? The payroll amounts?
RAMZI NABER: Not from the record. we wouldn't -- the payroll is with the payroll company. That has nothing to do with the file. The file doesn't have -- we don't have a copy of their paychecks in the file.
MR. DECOSTE: But you do have a copy of the check that you would write to them on the credit card tips; right? Stuff like that? Let me withdraw that and ask it a different way.
within that box of records that was destroyed, you would have records of what you paid Ms. Magbanua?
RAMZI NABER: Correct.
MR. DECOSTE: Okay. But, unfortunately, that happened to be in a paper box in the exact corner of your office where there was a flood and it all got ruined. So we don't know --
RAMZI NABER: It wasn't just one box. It was ten boxes.
MR. DECOSTE: About those ten boxes --
RAMZI NABER: It wasn't just hers. It was everybody else's.
MR. DECOSTE: Oh, no, no. I'm not trying to say, like, why were hers just in the corner. But you would agree with me that in the office, you've got boxes in the corner and there is a flood, literally --
RAMZI NABER: Yeah, yeah. Computer, everything underneath that was destroyed.
MR. DECOSTE: Had law enforcement come to you years ago, before that happened, understanding you're not really sure -- do you know when the flood happened? Do you know if it was before 2016?
RAMZI NABER: I know -- we've got to look up when the hurricane was there. I'‘11 tell you the exact year. But it was from that major hurricane that came through Florida and it did a lot of damage.
MR. DECOSTE: You would agree with me, though, that the chances of getting the documents, whether they were, you know, wet and partially destroyed or even replacing it, it would have been better to get in touch with you back years ago in 2016, ‘17, "18, instead of waiting until the next decade?
RAMZI NABER: All I know is there was two attempts from them to speak to me.
MR. DECOSTE: well after you sold the club?
RAMZI NABER: No. One, I don't know the exact times, I really don't. I will be lying if I told you what time and when. I remember a phone call with a message left on my voicemail saying, I'm so-and-so with the FBI. Give me a call back, we're trying to get to you. The club is closed, we can't get in. And it would have been during the day. Probably they're trying to come talk to somebody in the office and we don't open during the day.
MR. DECOSTE: If I were to tell you that first communication were 2020, and I understand -- I'm not asking you to agree.
RAMZI NABER: I'll take your word for it because I have no recollection of when.
MR. DECOSTE: It was.
RAMZI NABER: Okay.
MR. DECOSTE: So, if it were 2020, which it was --
MS. DUGAN: Objection to counsel testifying.
JUDGE WHEELER: That's sustained. You just said you weren't going to suggest to make him agree and that's exactly what you're doing.
MR. DECOSTE: Okay. Your Honor, I'll phrase it in a different way.
JUDGE WHEELER: Please.
BY MR. DECOSTE:
MR. DECOSTE: Okay. So, Mr. Naber, had law enforcement come to you before 2020, would there not have been a greater chance of getting the documentation and the exact numbers for Ms. Magbanua?
RAMZI NABER: I don't know if they could because in 2016, I didn't have keys for the place anymore. So I couldn't be -- I don't have access to the place since the partner, the guy that took over as the managing of the business, Phillip Houston, I don't have keys to the business to this day. So I don't have access to see what was in that office. And that's what I told them at that time, that I did not have -- I don't know what part of the damage was part of hers or not, but I didn't have access to it, period. So --
MR. DECOSTE: Right. Now is there any doubt in your mind whatsoever that Katherine Magbanua worked at your business Club Fate?
RAMZI NABER: No, she worked at the club. Yes.
MR. DECOSTE: Should any financial analysis of her income not include employment with your business? If you need to reask that, let me know.
RAMZI NABER: Yeah.
MR. DECOSTE: If there was financial analysis done of Ms. Magbanua over the years, would it wrong for it not to include the time that she worked for you at Club Fate?
RAMZI NABER: No, it should include Club Fate. Yeah.
MR. DECOSTE: Because she worked there?
RAMZI NABER: Yes.
MR. DECOSTE: I'm showing you now what has been entered in as government's 86, 86D. Do you know what that is?
RAMZI NABER: It's a hip-hop bar in Hollywood, Florida.
MR. DECOSTE: All right. Are you close with any of the owners there?
RAMZI NABER: No. I did purchase some of their old couches for Club Fate.
MR. DECOSTE: what are the chances? All right.
You don't know how much the servers make there, do you?
RAMZI NABER: I have no clue, but I know it's a different clientele.
MR. DECOSTE: Now, if we were to want to know the level of -- ~=level of income of the bottle service in that club, how much somebody would make, we should have somebody come here from that club; right?
RAMZI NABER: If you say so.
MR. DECOSTE: No, no, I'm asking you.
RAMZI NABER: If you want to know what they make there, I would ask them, yes.
MR. DECOSTE: One second, Your Honor.
Nothing further, Your Honor. Thank you.
JUDGE WHEELER: Redirect?
MS. DUGAN: Yes, sir, very short.
REDIRECT EXAMINATION BY MS. DUGAN:
MS. DUGAN: Defense said that Katherine Magbanua worked for you for months. You precisely said not more than three months; right?
RAMZI NABER: Right.
MS. DUGAN: Okay. And you said it made money when it first opened. Are you talking about that month time period that you told me about?
RAMZI NABER: correct.
MS. DUGAN: Okay. And then after that you said it just -- it didn't work?
RAMZI NABER: It fizzled out, yeah.
MS. DUGAN: If it had worked, you'd still be running it and own «it?
RAMZI NABER: I would still own it.
MS. DUGAN: Okay. And in your experience in the restaurant and nightclub business, when most people -- you said 90 percent of your business is from credit cards, or through sales. when people buy, you know, dinner, bottles, drinks, whatever on their credit card, do they also put a tip on that credit card, too?
RAMZI NABER: Correct.
MS. DUGAN: Okay. That's all. Thank you.
JUDGE WHEELER: we can release the witness?
MS. DUGAN: Yes, sir.
JUDGE WHEELER: ATl right. Thank you, sir. You're free to go.