Professional Documents
Culture Documents
G4IADISCps
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Petitioner,
v.
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90-cv-5722 (RMB)
Respondents.
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Before:
HON. RICHARD M. BERMAN
District Judge
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APPEARANCES
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PREET BHARARA
United States Attorney for the
Southern District of New York
BY: BENJAMIN H. TORRANCE, ESQ.
Assistant United States Attorney
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(212) 805-0300
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APPEARANCES (Cont'd)
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THE COURT:
over with you, and if you have any I'm happy to entertain them.
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forth.
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MS. JONES:
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THE COURT:
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Right?
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MS. LEE:
THE COURT:
MS. JONES:
No.
THE COURT:
OK.
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be.
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these unions quite apart from issues of, you know, if anybody
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particular financially.
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sub par.
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It seems to me
It seems to me we ought to
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your evaluation.
MR. McGORTY:
I suppose that
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THE COURT:
Yes.
I'm going
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MR. McGORTY:
Right.
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In
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form of the stip and order, at least the 2014 order and I
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address this for the funds -- but at least that the leadership
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of the funds is making sure that they are hiring and utilizing
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THE COURT:
So there are
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whether or not the members of the union, whether the funds are
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So that certainly is
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MR. McGORTY:
THE COURT:
MR. McGORTY:
THE COURT:
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MR. McGORTY:
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THE COURT:
OK.
All right.
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etc., etc.
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There was some back and forth between the benefit funds and
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and somebody wrote back and said, that's too expensive, we'll
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But frankly I
done all the time in areas where there are substantial amounts
of money which are held for the benefit of others -- why there
discuss today.
internal review of how well funds are doing gets to the point.
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MR. McGUIRE:
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benefit funds.
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Just to put
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THE COURT:
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doing.
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money.
between you and myself actually from "We don't know if the
That's all.
MR. McGUIRE:
I really would
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THE COURT:
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MR. McGUIRE:
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I know that.
I've seen --
doing.
THE COURT:
Gallagher has
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fully aware and I get some of the copies from Gallagher saying,
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So I'm
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look at.
MR. McGUIRE:
your Honor.
OK.
That's all.
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Gallagher's evaluation.
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THE COURT:
Yes.
So
We compare our
And by any
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the benefit funds explained that for the year ending September
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30, 2015, the return on investment for the pension fund was a
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S&P for the same period and a .35 percent loss for the fund's
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benchmark.
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discussion with you about how well the funds are doing today,
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same manager, Gallagher, has been the manager for a long period
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MR. McGUIRE:
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THE COURT:
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with you.
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of my career.
It's
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called an audit.
are hunky dory and healthy, doing well, don't think it's
MR. McGUIRE:
your Honor, but I'm fairly confident they will again make the
same decision.
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THE COURT:
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unnecessary?
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I don't know if it's too expensive or, you know, we're doing so
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well, or why.
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Yes.
And why?
MR. McGUIRE:
So
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THE COURT:
I don't mean to be
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rude.
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and all the time are outside persons called in to -- it's not
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invested.
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It's
argument with the Court, when I'm not even talking about my own
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personal views.
of the trustee.
THE COURT:
here and maybe I'll understand it better, why they are so dug
sense.
MR. McGUIRE:
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monitor: the funds have always taken the position that they are
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THE COURT:
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been here.
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MR. McGUIRE:
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stipulation and order, but that they were not parties to the
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THE COURT:
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wrongdoing.
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criminal wrongdoing.
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investments.
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You're taking
That's all.
MR. McGUIRE:
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THE COURT:
We
We are under
And
letter from the trustees that say that they refuse, for the
independent evaluation.
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MR. McGUIRE:
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THE COURT:
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MR. McGUIRE:
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THE COURT:
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When is that?
End of May, your Honor.
So you could certainly bring it up before
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MR. McGUIRE:
Yes.
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We
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trustees.
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THE COURT:
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MR. TORRANCE:
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as the process.
THE COURT:
One
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MR. TORRANCE:
Understood.
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I think, though,
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evidence of criminality.
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do, as the Court knows, disagree with Mr. McGuire about the
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best way of assuring that the funds are complying with the law
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officers have been aware of that issue and have been ensuring
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THE COURT:
OK.
And I
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or even one year, well, one of them may outperform the other.
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THE COURT:
If
Right.
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the oversight that the monitor and his predecessor have given
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THE COURT:
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MS. O'LEARY:
Honor, done last year that ended with no action, and the
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THE COURT:
raising?
MS. O'LEARY:
documents and then they just said -- they don't tell you
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THE COURT:
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MR. McGUIRE:
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THE COURT:
That's my point.
That is exactly my
point.
MR. McGUIRE:
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management trustees.
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that you have to ensure that you secure expert advice, which
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investments, because --
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THE COURT:
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MR. McGUIRE:
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THE COURT:
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MR. McGUIRE:
They don't.
They don't.
No.
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THE COURT:
Really.
MR. McGUIRE:
That's astonishing.
We look at
THE COURT:
Yes.
I think the
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MR. McGUIRE:
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THE COURT:
We will do that.
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sound critical.
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reports that you all have been sending me about the funds, that
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people involved.
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it's done.
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that, are there too many or would it make more sense if there
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I don't want to
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counsel.
involved also.
lawyers.
answered today.
But
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maybe that is something that, Mr. McGorty, you could look into
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too.
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Anybody -- no.
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OK?
I don't mean to --
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you are all aware that on February 12, 2016, the NLRB affirmed
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the ruling of the ALJ, Mr. Raymond Green, and found that the
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So I wanted to get
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MR. MURPHY:
Or if there is
District Council.
Your Honor, you are correct; there has been a joint
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arbitration appeal.
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THE COURT:
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MR. MURPHY:
And
Tomorrow.
Yes.
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together on that.
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THE COURT:
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MR. MURPHY:
enforcement.
And in
October of 2013.
Like all
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THE COURT:
I'm
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happened.
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maintained.
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I don't know.
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its own?
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MR. MURPHY:
No.
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THE COURT:
MR. MURPHY:
That's correct.
We negotiated a
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THE COURT:
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MR. MURPHY:
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THE COURT:
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existing agreement.
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MR. MURPHY:
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THE COURT:
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Right.
OK.
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MR. MURPHY:
That the NLRB's decision -The Wall-Ceiling case is not one involved
THE COURT:
MR. MURPHY:
THE COURT:
Yes, I know.
Yes.
But the issue of full mobility is central
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Wall-Ceiling, no?
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MR. MURPHY:
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THE COURT:
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you.
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argument is premature and that the NLRB decision and order will
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forging ahead with that, and if the Second Circuit would refuse
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THE COURT:
MR. MURPHY:
I know.
We're also in negotiations -- the
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June 30th.
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Association.
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subcontractors.
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That's the
But those
The
And what
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that if that goes, that the full mobility goes, and that would
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MR. MURPHY:
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MR. MURPHY:
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then lose full mobility, and for them that would be a disaster.
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But, also, the raises of the District Council for wages as well
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THE COURT:
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OK.
I get it.
Any, Mr. McGorty, do
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MR. McGORTY:
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few months and we've already begun the process of reviewing and
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THE COURT:
MR. McGORTY:
your Honor.
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THE COURT:
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MR. McGORTY:
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THE COURT:
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MS. JONES:
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MR. McGORTY:
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apologize.
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THE COURT:
MR. McGORTY:
compliance officer.
Mr. Murphy
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THE COURT:
I know that.
fabulous job.
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MR. McGORTY:
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THE COURT:
Right.
I am just wondering, I'm trying to figure
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What does the inspector general do, in relation to, say, what
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MR. McGORTY:
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I have
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with them.
been made to the inspector general, and I try and hand them off
as best as possible.
Since your Honor raised it, I will say that one of the
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successful as possible.
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THE COURT:
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MR. McGORTY:
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THE COURT:
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Sure.
And the compliance office, is that
different?
MR. McGORTY:
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THE COURT:
Great.
No.
So
Thanks.
Anybody else?
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MS. JONES:
Thank you.
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THE COURT:
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MR. TORRANCE:
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MR. MURPHY:
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SOUTHERN DISTRICT REPORTERS, P.C.
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