Rachmale did not feel the million dollars to Ferguson was right, but Rachmale had to keep Ferguson happy and he did not want to loose the contract($10 million $5 million.) 

Ferguson did not have to perform any work for the million dollars. 

1:07 PM

Rachmale explained Ferguson also wanted 5% of all change orders.  One of which was an asbestos abatement contract that had nothing to do with Ferguson.  LES paid Ferguson because they did not want to lose the contract.  

Ferguson asked for $25,000 from Hardiman, who in-turn told Rachmale, who collected cash and Hardiman delivered it on the same day.  Again, they did not want to upset Ferguson. 

LES received an Invoice from Johnson Consulant (suppose to be consultant) this is a company owned by Bobby Ferguson's wife for $450,000.   Rachmale testified no services of any kind were ever received from Jonhson "Consulant."  The $25,000 cash payment was subtracted from the total amount on the invoice. 

Checks from LES to Johnson "Consulant" were presented to show the balance of the invoice was paid. 

One of the checks for $155,700 was written from Sky Group Grand.  Rachmale explained that was because he did not want his employees questioning why checks were being written to a company they did not have a contract with.  Sky Group Grand is the property management part of Lakeshore and Rachmale could control who could see those checks. 

Done for the day