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MAY
31
4 YEARS

David Bergstein Testifies in Court for First Time Amid Long-Running Legal Woes

The embattled executive on Tuesday finally faced the group of creditors group who successfully brought the rare involuntary bankruptcy action that has ground his movie business to a halt.

David Bergstein

Since the involuntary bankruptcy case against his movie holding companies began in March 2010, David Bergstein had never appeared in person at the many court hearings.

He was deposed in the case, and almost testified in lawsuits brought against him by Aramid Entertainment and defunct hedge fund D.B. Zwirn. But both those cases, scheduled for trial last month, were settled out of court at the last minute, thanks to Bergstein's former business partner Ronald Tutor. So neither took the stand in open court

On Tuesday, however, Bergstein for the first time faced the group of creditors group who successfully brought the rare involuntary bankruptcy action that has ground his movie business to a halt. They gathered in a 26th-floor room of the federal bankruptcy court trustees offices in downtown L.A.

Bergstein was there because the federal court had designated him as the responsible party for the companies in the suit, including R2D2, ThinkFilm and Capitol Film.

For most of the nearly two-hour session, Bergstein was questioned by Leonard Gumport, attorney for court appointed trustee Ronald Durkin. Gumport sat opposite Bergstein, while Durkin sat between them taking notes, and next to him was a court stenographer.

Bergstein, in a dark suit, white shirt and no tie (unlike all the lawyers), was accompanied by his lawyer, Joel Boxer. He complained that a lot of the documents he needed had been held from him by his former attorney Susan Tregub, whom he said he recently demanded hand over all the documents.

In the face of overwhelming evidence, Bergstein conceded to Gumport that he erred when he turned in schedules last week listing his creditors with all zeros in the columns where assets and debts were supposed to be listed. He said he meant to leave it blank because he didn't know the exact amount.

"This is not about me trying not to be helpful," Bergstein said under oath. "But every time I put something down I get crucified."

Speaking in a soft monotone most of the time, Bergstein said he no longer had the staff or resources to sift through all the data necessary to determine the exact amounts, so he wrote zero. Bergstein repeatedly denied that his office computer, which he has refused to allow the trustee to image, contains anything having to do with any of the five bankrupt companies.

To most questions he just said, "I don't recall," or his lawyer told him not to answer.

"I don't want to be like Sgt. Schultz," Bergstein said at one point, referring to the sitcom character who famously exclaimed, "I know nothing!" to every question. "But I don't have the records."