---
type: court_doc
id: "court_ctb_404_20"
court: "CTB"
case_no: "22-50073"
doc_number: 404
doc_type: "EXHIBIT"
filed_date: "2022-05-20"
lang: "en"
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url: "https://mubeitech.com/en/court/court_ctb_404_20"
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---
# Guo Wengui / Miles Guo — bankruptcy case · EXHIBIT · ECF #404-20



EXHIBIT PAX 20

May 27, 2021 Hearing Transcript, PAX v. Kwok, Index. No. 652077/2017 (N.Y. Sup. Ct.), Dkt. 833

1 SUPREME COURT OF THE STATE OF NEW YORK FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 2 of 20

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COUNTY OF NEW YORK : CIVIL TERM : PART 61 ------------------------------------------X PACIFIC ALLIANCE ASIA OPPORTUNITY FUND L.P., Plaintiff, INDEX NO: -against- 652077/2017 KWOK HO WAN, a/k/a KWOK HO, a/k/a GWO WEN GUI, a/k/a GUO WENGUI, a/k/a GUO WENGUI, a/k/a WAN GUE HAOYUN, a/k/a MILES KWOK, a/k/a HAOYUN GUO, GENEVER HOLDINGS CORPORATION, and GENEVER HOLDINGS LLC, Defendants. ------------------------------------------X MICROSOFT TEAMS May 27, 2021 B E F O R E: THE HONORABLE BARRY OSTRAGER, J U S T I C E A P P E A R A N C E S: O'MELVENY & MYERS LLP Attorney for the Plaintiff Times Square Tower New York, New York 10036 BY: EDWARD MOSS, ESQ. STUART SARNOFF, ESQ. BAKER HOSTETLER, LLP Attorney for the Defendant 45 Rockefeller Plaza New York, New York 10111 BY: MELISSA CARVALHO, ESQ. JOHN SIEGAL, ESQ. LAWALL & MITCHELL, LLC Attorney for the Defendant GENEVER 162 E. 64th Street New York, New York 10065 BY: AARON A. MITCHELL, ESQ.

KM

FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 3 of

1　YANKWITT
LLP

2　Attorney
for
the
Defendant

Grand
Street,
Suite

3　New
York,
New
York
NY
BY:
DANIEL
ALTER
ESQ.

21　Karen
Mangano,
CSR
22　Senior
Court
Reporter

FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 4 of 20

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 Proceedings 3 THE COURT: All right. Mr. Moss, this is your motion. MR. MOSS: Good afternoon, your Honor. We have two requests in our motion. One is compel discovery in response to a subpoena and the other is to modify the Court's restraining order. So I thought I would start with the subpoena. Your Honor, this might be the most straightforward issue that I've argued in front of this Court on this case. CPLR 5223 permits a broad range of discovery on any third party to request information that is relevant - relevant to enforcement of a judgment. As the Court knows, we've been forced -- my client has been forced to serve subpoenas on several third parties trying to find Mr. Kwok's assets because he doesn't hold them in his own name. Perhaps the most important subpoena Pacific Alliance served was a subpoena on an entity called Golden Springs. Golden Springs is a so-called family office for Mr. Kwok's family, but in reality, it is just Mr. Kwok's principal front. It's an entity that he funded entirely with his own money. It's an entity that pays all of the expenses for his lavish lifestyle. Every single expense by their own admission. It pays legal fees for a host of
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 5 of 20

Proceedings

1　lawsuits
for
lawyers
to
represent
Mr.
Kwok
in
his
individual
2　capacity
in
cases
in
which
Golden
Springs
is
not
even
a
3　party.
4　It
pays
the
legal
fees
of
a
lawyer
who
represents
5　the
entity
that
owns
the
yacht
that's
stonewalling
me
in
6　discovery
like
the
others.
7　It
pays
the
maintenance
on
the
Sherry-Netherland
8　apartment.
We
know
all
of
this
because
Mr.
Kwok
and
his
9　lawyers
admitted
it
in
court
filings
and
in
discovery
10　responses.
11　I
just
want
to
put
a
fine
point
on
it,
your
Honor.
12　Mr.
Kwok
has
no
money
or
assets
according
to
him,
but
he
13　says
he
funded
this
entire
entity
and
he
uses
it
to
pay
14　every
single
one
of
his
expenses,
his
living
expenses.
15　What
are
we
talking
about
here,
Judge?
How
is
this
16　discovery
possibly
not
permitted
under
the
CPLR?
How
is
it
17　not
permitted
relevant
to
enforce
a
judgment?
18　The
opposition
that
they
filed,
your
Honor,
it's
a
19　frivolous
document,
and
I
want
to
start
with
what's
not
in
20　here.
What's
not
in
it
is
a
dispute
about
any
one
of
the
21　facts
that
I
just
covered
about
Golden
Springs.
They
ignore
22　all
of
them.
They
can't
dispute
them
because
Mr.
Kwok
and
23　his
lawyers
admitted
them
in
discovery
responses
and
in
24　Court
filings.
So
Golden
Springs
--
one
of
their
arguments
25　is
well,
we
have
corporate
documents.
We
respect
the
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 6 of 20

Proceedings
1　corporate
forum.
We
have
employees.
But
it
doesn't
dispute

2　that
it
only
has
one
business
which
is
to
serve
Highness
3　Kwok.
It
doesn't
even
say
what
the
business
is
besides
a
4　family
office
for
his
business.
They
say
we
have
employees
5　that
include
security.
That's
Mr.
Kwok's
bodyguard
who
6　comes
to
--
who
comes
with
him
to
my
office
when
I
depose
7　him
and
hands
him
bottled
water
because
he's
afraid
that
8　we're
agents
of
the
communists
and
my
water
at
my
firm
is
9　going
to
kill
him.
I
mean,
Judge,
this
is
not
a
real
10　company.
They
pay
for
Mr.
Kwok's
people.
11　If
Tim
Cook
got
sued
for
something
unrelating
to
12　his
capacity
in
Apple,
Apple
doesn't
pay
those
fees.
Apple
13　doesn't
pay
his
maintenance.
This
is
Mr.
Kwok's
piggy
bank
14　that
he
set
up
with
his
own
money.

The principal argument that is in Golden Spring's papers is that Golden Springs is a third party and so we should only be entitled to information about assets that it holds for or transactions that it has conducted with Miles Kwok.
20 21 22 23 24 25 That's basically like saying it's a bank; right. You get that we subpoena the bank which we've done. We get Mr. Kwok's information, but we don't get information about the bank itself. We don't get information about the bank's other customers. That's a nice argument for a bank, but it completely ignores the context that Golden Springs is not a
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 7 of 20
Proceedings 6 third party. It is the entity that holds Mr. Kwok's money, and it is the entity that pays his legal expenses. So it's assets are his assets. It's transactions are his transactions. And it's financial information is his financial information. The suggestion in the papers that Mr. Kwok and Miss Wang and all of his people should be able to pick and choose and determine which information at Golden Springs relates to Mr. Kwok and which doesn't is a recipe for disaster here, Judge. Mr. Kwok denies even being involved with Golden Springs. He denies being involved with the entity that owns the boat that we all know he owns because he said he owns the boat on YouTube, the boat which, by the way, is still out of the jurisdiction 15 days incurring \$500,000 a day. Mr. Kwok is the same guy who denies owning his apartment that Miss Wang says -- told the Court under oath that he owns it. So the limitation that they're trying to put in here, only things relating to Mr. Kwok, that's nonsense in this case, and it's just a recipe for us to get nothing. Golden Springs also argues on the subpoena that we have to prove alterego to get discovery into it's assets.

Well, that's just made up. There is no case to support that.
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 8 of 20

Proceedings
1　5223
is
a
broad
standard.
It's
a
generous

2　standard.
The
Court
ordered
Miss
Wang's
information
to
be
3　produced
by
the
banks.
They're
not
alteregos.
She's
not
an
4　alterego.
Of
course,
we
don't
have
to
prove
that
it's
an
5　alterego
to
get
it's
information.
6　The
Court
found
that
Miss
Wang
might
be
hiding
Mr.
7　Kwok's
assets
and
gave
us
access
to
her
financial
8　information.
This
is
much
easier.
He's
already
said
it's
9　his
money,
and
he's
using
it
to
pay
all
of
his
expenses.
I
10　mean,
there's
no
credible
opposition
to
this
motion.
11　Finally,
there's
some
arguments
about
scope.
You
12　know,
I
read
it
a
few
times.
My
subpoena
is
astounding.
13　It's
blunderbuss.
It's
a
fishing
expedition.
It's
14　flagrant.
A
lot
of
adjectives,
but
no
substance.
They
15　don't
articulate
any
burden
arguments
at
all.
16　Usually
you
say,
Judge,
well,
we
ran
some
search
17　terms,
and
there
are
too
many
hits
or
this
is
going
to
be
18　too
burdensome
to
get
because
it's
on
a
different
server.
19　Nothing.
This
is
basically
just
a
relevance
argument
that
20　we're
asking
for
too
much.
21　If
they
want
to
have
a
discussion
about
search
22　terms
and
custodian
and
which
laptops
to
collect,
we
welcome
23　that
discussion.
We
welcome
an
actual
discussion
about
24　burden
and
scope.
But
not
just
saying,
well,
we
think
it's
25　too
much
without
any
showing
--
any
showing
at
all
that
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 9 of 20

Proceedings
there is an actual burden.
I want to just end on one particular argument on the subpoena point because I expect Mr. Alter will focus on it. We ask -- we do. He's right. We ask for information about 60 people and entities, no one knowing to be associated with Kwok.

Mr. Alter quips in the brief, well, known by whom? Known by whom? Known by us, Judge. Known by us based on spending a lot of money and lot of time to dig through public records, court filings, social media accounts because that's the game Mr. Kwok has forced us to play.

12 13 14 15 16 17 18 19 20 21 22 23 The reason we have to ask for this information is because Golden Springs is the hub. We can't spend the rest of our lives chasing 100 entities. I mean, my grandkids would be doing this. Golden Springs is the entity that has the information. It's produced documents relating to Shiny Times, the entity that was involved in the underlying case. It has the documents. It is the hub of the empire. If it doesn't have information about a couple of these entities, if we're wrong about one or two, okay, fine. Then they should run the search and tell us they don't have it and not produce it. But run the search terms, collect the ESI and provide the documents.

24 25 THE COURT: All right, Mr. Moss. I understand your argument. I also understand that Mr. Kwok is incurring
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NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 20

Proceedings

1　\$500,000
a
day
in
contempt
penalties.
I
understand
that
Mr.
2　Kwok
believes
that
these
court
proceedings
are
a
game
of
3　evasion
that
he
--
that
he
wants
to
play.
4　And
let
me
hear
from
counsel
for
Golden
Springs.
5　MR.
ALTER:
Good
afternoon,
your
Honor.
It's
6　Daniel
Alter,
and
we've
just
heard
a
lot
of
talk
but
7　relatively
little
truth,
and
I'd
like
to
step
back
and
8　clarify
some
issues
that
were
quite
muddied.
9　First
of
all,
to
correct
two
specifically
10　inaccurate
statements,
it's
my
understanding
that
Mr.
Kwok
11　has
never
said
that
he
is
entirely
unrelated
or
has
no
12　connection
to
Golden
Springs.
Quite
the
opposite.
He
said
13　that
it
is
his
family
office.
So
let's
be
accurate
about
14　that.
15　The
second
thing
is
that,
you
know,
apparently

16　they
take
the
position
that
Mr.
Kwok
has
entirely
funded
17　Golden
Springs.
Well,
I
don't
see
the
evidence
of
that.
18　What
I
see
is
a
statement
in
the
record
that
he
initially
19　provided
capital
to
Golden
Springs,
but
I
see
no
evidence
20　that
he's
continued
to
do
so
or
that
the
capital
there
now
21　is
his.
Let
me
step
back
a
moment
and
talk
about
this.
22　THE
COURT:
Before
you
do
so,
Mr.
Alter,
because
23　rightly
or
wrongly,
Mr.
Kwok
has
exhausted
the
Court's
24　patience
with
his
antics.
25　It's
quite
undisputed
that
Golden
Springs
has
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Proceedings

funded seven-figure payments to facilitate Mr. Kwok's
lifestyle, and Mr. Kwok leads a rather extravagant lifestyle, purports to have zero assets whatsoever. So the plaintiff is a judgment creditor. The plaintiff knows that Golden Springs is funding expenses for Mr. Kwok. Not minor inconsequential expenses. Major expenses. And the judgment creditor is entitled to have discovery of the entity that is funding Mr. Kwok's expenses. The judgment creditor is also entitled to an order directing Golden Springs not to transfer, dispose or otherwise dissipate whatever assets Golden Springs has

because the best evidence that has been made available to the Court compellingly suggests that any assets that Golden Springs has were provided to Golden Springs by Mr. Kwok.

Now if the discovery that the judgment creditor is seeking from Golden Springs disproves that, well, then we have a different situation than the situation we now have.

18 19 20 21 22 Under the CPLR, a judgment creditor is entitled to discovery of third parties of which in this case may well be alteregos of Mr. Kwok, but it's not necessary for the judgment creditor to establish that Golden Springs is an alterego of Mr. Kwok.

23 24 25 MR. ALTER: You know, your Honor, we haven't - that's not our position. That's the straw man that has been presented.

KM

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Proceedings
1　THE
COURT:
Well,
be
that
as
it
may,
unless
you
can
2　persuade
me
otherwise,
I
am
granting
the
judgment
creditor's
3　motions
in
their
entirety.
4　As
Mr.
Moss
outlined,
he
is
perfectly
prepared
to
5　meet
and
confer
and
discuss
limitations
on
specific
requests
6　that
he's
made
if
you
can
then
state
to
him
good
cause
for
7　that.
But
we're
past
playing
games
here.
8　MR.
ALTER:
Well,
your
Honor,
I'm
not
here
to
play
9　games,
and
if
the
Court
has
made
it's
decision,
would
it
10　allow
me
to
make
my
record.
11　THE
COURT:
Yes.
Make
your
record.
12　MR.
ALTER:
Okay.
Thank
you,
your
Honor.
13　First
of
all,
our
argument
is
not
that
you
have
to
14　pierce
the
corporate
veil
in
order
to
get
third-party
15　discovery
under
the
CPLR
for
judgment
creditors.
It's
a
16　relevance
argument,
and
we've
already
said
that
there
are
17　aspects
such
as
discovery
as
between
Golden
Spring
and
the
18　actual
judgment
debtor
is
relevant
and
appropriate.
So
we
19　haven't
taken
a
position
that
is
all
out
of
line
with
what
20　the
law
provides.
21　What
we
have
said
and
what
Mr.
Moss
has
proven
in
22　his
argument
is
they
take
the
position
that
Mr.
Kwok
is
23　Golden
Spring
and
Golden
Spring
is
Mr.
Kwok;
and
therefore,
24　they
are
entitled
to
go
through
the
entire
file
of
Golden
25　Spring.
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Proceedings
Well, you know, your Honor, that's called piercing the corporate veil, and it's our position that if they want documents independent of the judgment debtor where they make no connection or efforts to make a connection whatsoever, then, yes, they do have to pierce the corporate veil, but that isn't the sum total of our argument.

Our argument is that the requests are exceedingly overbroad and that they are irrelevant. And in fact, let's go for a moment to the facts that Mr. Moss says are overwhelming in this case.

If you look at the submission that was actually presented on this motion, there is absolutely no facts presented with regard to the 64 nonparties for which they seek discovery having nothing to do with the judgment debtor. Just -- not even having anything to do with Golden Spring. They just want discovery to 64 nonparties.

17 18 19 20 21 22 23 24 Now your Honor, we heard Mr. Moss say that he knows there is a connection. Well, wouldn't it be enlightening for the Court to know what that connection is before there is a ruling that Golden Spring has to produce documents that otherwise are clearly irrelevant. So that's why we assert that those documents should not be discovered unless and until Mr. Moss and PAX comes forward with actual proof that there is a connection. We don't have that.

And with regard to the proof, the overwhelming

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Proceedings

1　proof
that
Golden
Spring
is
Mr.
Kwok
and
Mr.
Kwok
is
Golden
2　Spring,
at
least
from
the
record
I've
seen,
your
Honor,
and
3　I
do
not
call
your
Honor's
history
--
historical
4　recollection
into
question,
but
what
has
been
presented
on
5　this
record
is
Golden
Spring
initially
helped
to
capitalize
6　a
company.
A
lot
of
folks
do
that.
7　Secondly,
Golden
Spring
pays
for
attorneys
and
has
8　contributed
to
paying
for
apartment
expenses.
Well,
okay.
9　Three,
employees
of
Golden
Spring
have
attended
10　family
interests
that
have
to
do
with
the
Guo
family.
Well,
11　it's
a
family
company.
It's
a
family
office.
12　And
Golden
Spring's
parent
has
apparently
produced
13　documents
in
response
to
discovery
requests.
So
yes,
14　there's
a
connection
as
Mr.
Kwok
has
said,
but
there
isn't
15　an
identity
of
entity
between
Mr.
Kwok
and
Golden
Spring,
16　and
that's
why
we
referred
in
our
papers
to
the
fact
that
if
17　that
is
the
case,
the
law
is
very
clear
they
do
need
to
18　pierce
the
corporate
veil
and
they
absolutely
would
need
to
19　pierce
the
corporate
veil
to
get
injunction.
Because
as
we
20　stated,
as
much
as
the
Court
has
lost
patience,
and
I
21　understand
your
Honor's
position,
the
law
is
clear
that
an
22　entity
as
a
matter
of
due
process
can
not
be
enjoined
23　without
actually
being
a
party.
24　And
even
if
an
entity
were
brought
into
a
25　litigation
as
a
party,
the
Courts
are
constrained.
They
can
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 15 of 20

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not grant prejudgment asset freezes, and that is exactly what PAX is trying to do now. They are trying to enjoin Golden Spring from expending any of it's own assets for any purpose, and that is contrary to the law.

5 6 7 8 9 10 11 12 13 14 Now, they argue that your Honor has a power to enforce restraining orders. Of course you do. And Golden Spring was served with a restraining order, and Golden Spring acts at it's peril if it transfers any property with which Mr. Kwok -- in which Mr. Kwok has an interest, but a Court's enforcement of a restraining notice is not the tantamount to an injunction. It's an after-the-fact litigation based upon allegations that there had been a violation of the notice. They're two entirely separate things.

So your Honor, respectfully, there isn't either a jurisdictional basis for the injunction nor is there a compelling factual basis for one because they have the relief that the CPLR has provided for.

Now, if the Court is going to go ahead and enter certain orders as your Honor has described, I request a few things, a few clarification points.

22 23 24 25 First of all, we would request the Court post a bond. Order that PAX post a bond. They are seeking an injunction against Golden Spring from using any of it's assets. And pursuant to the CPLR 6312(b), a bond is
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1　necessary.
It's
a
necessary
element
for
preliminary
relief.
2　So
we
would
ask
the
Court
direct
that
a
bond
be
posted.
3　We
would
also
ask
whether
under
this
jurisdiction,
4　Golden
Spring
is
able
to
pay
lawyers.
Is
it
able
to
pay
5　it's
employees?
6　Mr.
Moss
dismisses
the
fact
that
the
company
7　actually
employs

employees
and
seven
independent
8　contractors.
Are
they
not
entitled
to
continue
that?
Do
9　they
need
--
is
this
injunction
going
to
close
Golden
10　Spring?
We
need
that
clarification
because
Golden
Spring
11　does
not
want
to
be
in
violation
of
your
Honor's
order.
12　And
finally,
you
know,
your
Honor,
I
would
request
13　respectfully
a
stay
of
the
Court's
order
for
a
week
so
that
14　we
may
seek
appellate
relief
and
seek
a
stay
pending
appeal.
15　But
given
that
this
is,
you
know,
a
holiday
16　weekend,
we
request
that
the
Court
stay
because
again,
as
I
17　said,
Golden
Spring
does
not
want
to
be
in
violation
of
this
18　Court's
order;
but
for
all
the
reasons
I've
stated,
19　honestly,
your
Honor,
the
relief
requested
is
a
function
of
20　facts
that
Mr.
Moss
has
asserted
as
judge,
jury
and
21　executioner.
22　They
haven't
been
presented.
They
haven't
been
23　adjudicated.
They
haven't
been
formally
determined,
all
of
24　which
are
necessary
for
the
kind
of
relief
for
reaching
into
25　Golden
Spring
and
setting
aside
it's
individual
identity
and

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1　just
securing
whatever
documents
it
wants
and
enjoining
all
2　of
it's
assets.
That's
necessary
under
the
law.
3　Thank
you,
your
Honor.
4　THE
COURT:
All
right.
I
take
your
points.
5　Nothing
that
you've
said
suggests
that
Golden
6　Springs
hasn't
paid
seven
figures
worth
of
Mr.
Kwok's
7　expenses
in
the
immediate
recent
past.
Nothing
that
you
8　said
alters
the
fact
that
Mr.
Kwok
flaunts
the
Court's
9　orders
at
will.
10　You're
correct
that
PAX
needs
to
post
a
\$500,000
11　bond.
You're
correct
that
I
should
stay
these
orders
until
12　June
1st
at
five
p.m.
to
enable
you
to
seek
appellate
13　relief,
and
you're
correct
that
Golden
Spring
may
pay
it's
14　employees
in
accordance
with
a
schedule
listing
the
identity
15　of
the
employees
and
the
amount
of
their
compensation
which
16　you'll
provide
to
Mr.
Moss.
And
I
think
that
addresses
your
17　concerns.
18　MR.
ALTER:
With
one
exception,
your
Honor,
and
I
19　appreciate
the
Court's
response
to
those
concerns.
The
20　attorneys.
The
attorneys
that
Golden
Springs
has
been
21　permitted
here
today
to
pay.
22　THE
COURT:
There's
no
issue.
Just
need
to
23　identify
the
attorneys
and
the
fees
that
you're
paying
to
24　them.
25　MR.
ALTER:
Okay.
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 18 of 20
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1　THE
COURT:
And,
you
know,
I
note
that
Mr.
Kwok
has

2　apparently
no
concern
for
the
\$500,000
a
day
sanction
for
3　flagrantly
violating
prior
orders
of
the
Court
with
respect
4　to
the
boat
that
Golden
Spring's
is
paying
to
maintain
and
5　transport.
And
if
my
calculation
is
correct,
the
total
of
6　the
contempt
sanctions
to
date
is
\$7.5
million.
7　Mr.
Kwok
is
just
not
free
to
live
in
New
York
at
an
8　ultra-luxurious
condominium,
the
cost
of
which
he's
paid
for
9　by
Golden
Springs
and
ignore
the
processes
of
the
New
York
10　courts.
11　Now
does
anybody
else
wish
to
be
heard?
12　MR.
MITCHELL:
Your
Honor,
Aaron
Mitchell.
I
13　represent
the
Genever
defendants.
Just
one
point
of
14　clarification.
15　As
you're
well
aware,
your
Honor,
the
Genever
16　New
York
which
owns
the
co-op
is
in
bankruptcy
so
Golden
17　Spring
is
not
paying
the
maintenance
for
that
apartment.
18　I
believe
Mr.
Moss
is
aware
as
well
there
was
a
19　security
deposit
paid
which
the
surety
is
drawing
down
on
20　which
I
just
want
to
make
that
clear
for
the
record.
21　THE
COURT:
That
is
a
fair
and
appropriate
22　clarification.
23　It
doesn't
alter
the
fact
that
prior
to
the
fact
24　that
Genever
which
is
another
one
of
Mr.
Kwok's
many
25　companies
was
paying
for
Mr.
Kwok's
luxury
apartment.
FILED: NEW YORK COUNTY CLERK 06/01/2021 04:48 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 833 RECEIVED NYSCEF: 06/01/2021 Case 22-50073 Doc 404-20 Filed 05/20/22 Entered 05/20/22 11:52:18 Page 19 of 20

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1 2 3 4 5 6 Mr. Moss has been pursuing enforcement of a judgment for years now, and it's been my misfortune to have to have presided over these many, many, many motions and hearings, none of which are producing the results that the Court has ordered because Mr. Kwok directly or indirectly through his companies ignores Court orders.

But Golden Springs presumably will comply with the Court's order, and Golden Springs, you know, may seek a stay in the Appellate Division either tomorrow or today or on June 1. And if the Appellate Division stays the Court's order, then the Court's order will be stayed.

Otherwise, the Court expects Golden Springs to comply with the Court's orders subject to PAX's posting of \$500,000 bond in the event it's determined that there's any overreach here and subject to Golden Springs being able to pay identified lawyers and identified employees in accordance with the schedule.

MR. SARNOFF: Your Honor, this is Stuart Sarnoff. May I just ask one clarification?

THE COURT: Yes.
21 22 23 24 MR. SARNOFF: The obligation of PAX to post a bond, is that specifically in respect of the restraining order part of the -- of your decision today? THE COURT: Yes.

MR. SARNOFF: And separate -- so there is no --

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1　THE COURT:
With respect to the restraining order.
2　MR. SARNOFF: So there is no -- there is no stay
3　with respect to the obligation of Golden Spring to comply
4　with the subpoena.
Is that correct?
5　THE COURT:
That's correct.
6　MR. SARNOFF:
Thank you, sir.
7　THE COURT:
Anything else from anybody else?
8　All right.
The Court will enter a memorandum order
9　consistent with the transcript of the proceedings of today.
10　I would strongly urge counsel to order an expedited copy of
11　the transcript of proceedings of today so that in the event
12　Golden Springs seeks a stay from the the Appellate Division,
13　there is a clear record reflecting what the Court has
14　ordered.
15　Have a nice day and a nice weekend.
Everybody stay
16　safe and thank you.
17　CERTIFIED TO BE A TRUE AND ACCURATE TRANSCRIPT OF THE
18　ORIGINAL MINUTES TAKEN OF THIS PROCEEDING.

22　KAREN MANGANO, CSR
23　Senior Court Reporter