Sauer looks over document that says second installment of $250,000 will not be released.
Sauer recalls that Lisa Shoemaker testified that the state decided not to seek any funds from Detroit 3D.
Van Dusen says are you aware of anyone seeking return of funds from Detroit 3D? I'm not aware of any says Sauer.
So as of November 2002, Detroit 3D has its funds and owns this house on Meyers St. Correct says Sauer.
There were no restrictions that Detroit 3D couldn't sell the house? Correct says Sauer.
And there was no stipulation they had to send proceeds to Lansing? Not aware of any says Sauer.
"To personally take the funds out of a non-profit, not sure what his authority at the time." says Sauer.
Van Dusen says did he not have as President of 3D the ability and authority to do that, speaking as an IRS agent? Sauer says obviously he was able to do it. "I would say it's unusual for a non-profit to withdraw funds and give it to its President."
Van Dusen says so you can not tell us as a matter of law if he had the authority to do that? No says Sauer.
12:19PM Chutkow redirects.
Sauer says proceeds from house sale represent 100% profit as the original money came from the state.
Sauer says none of the money was repaid to the state according to Shoemaker's testimony.
Agent Sauer steps down.
Chutkow asks for SIDEBAR.
12:23PM IRS Agent Sauer comes back for another "chapter".
Sauer subpoenaed Merrill Lynch for money market accounts for Detroit 3D. Did obtain those records.
Exhibit SG 31 admitted. Underlying account records from Merril Lynch- 2 separate accounts.
Sauer summarized those records in a spreadsheet.
There were 2 money market accounts. When the $250,000 came from the state, it came into one account and then went to another for Detroit 3D.
October 5th, 2000. Money that came from the state- then went out. This was a new account that was opened sometime in the fall of 2000.
The initial funding is for Detroit 3D. The first transaction on the account was $100,000 wire transfer to U.N.I.T.E.
Sauer heard testimony on the Detroit Interiors payment of $37,000. On Sauer's spreadsheet, date of check July 5th, 2001. The check was cashed.
Sauer heard Airtec testimony on $10,000 payment. Also on the spreadsheet for August 6th 2001.
Bellcon Construction check for $2001.
B-Safe check for more than $4,0000.