……..outside legal expenses incurred by TPL (the parties currently have four patent infringement litigations pending), are approved by the PDS Management committee and then payment made to TPL for reimbursements, as appropriate.

9. On or about December 17, 2008, I observed that PDS had approved payments to TPL to “reimburse” TPL for payments that (according to Mr. Leckrone) had been made to outside counsel handling the patent infringement litigation at that time, Townsend, Townsend & Crew (“Townsend”). I discovered later that Mr. Leckrone had not paid the Townsend firm the $500,000 as represented and called him on it. Mr. Leckrone eventually paid Townsend the $500,000 that had been wired to the TPL account approximately two months earlier.

Doesn't it make you wonder if Townsend and Leckrone had an agreement whereby Leckrone could keep the $500K..... Just because Leckrone eventually paid Townsend, doesn't mean it didn't eventually work its way back to him. According to Johnson, he discovered this one and Johnson is not even our forensic accountant. Makes me wonder how many other "approved reimbursements" were questionable and possibly overlooked as such.