Smith “Can you tell the jury where physical cash comes into play?” Craig “Like?” Smith “Were any of the cash deposits that we’ve talked about in prior testimony or cash withdrawals from the PHCA accounts, were any of those Visalus connected?” Craig “Yeah.” Smith “How so?” Craig “Because we could only spend so much per payment thing, you know. Like credit cards, let’s just use one credit card because I think everyone was using a debit or credit card. Since we were only able to use $5,000 per month we had to use several different credit cards to keep up with our demand.” Smith “Then why would those payments end up, for example, why would PayPal money end up in C-dude, for example?” Craig “To buy more product.” Smith “Those withdrawals were to purchase more product?” Craig “Yes. I think, but I’m not 100% positive. That shows in all of our Visalus records.”

Smith “Why, for example, PHCA, why a check wasn’t used every time from them to purchase product?” Craig “Oh, for that it would go over the limit. And we didn’t use checks. You didn’t put in an order and roll out a check to Troy, Michigan, or whatever and they process it. We had — we were selling that much product. And another benefit to us is that we were guaranteeing two-day delivery.” Pg. 880 Smith “Let me ask you this. Why were you using cash? Why were you doing cash withdrawals?” Craig “What do you mean?” Smith “When you would go get $5,000, would it be physical cash or in the form of a check?” Craig “As you see, the cashiers check. I don’t know — there could have been physical cash. But, you know, I don’t know. But, the truth is, the reason we had to have cash or a cashiers check, or whatever. It had to be guaranteed funds. So the bank that it was deposited in, they make the funds immediately. That means we could get more product.“ Smith “So you did that to avoid delays?” Craig “Yeah. That kind of money they’ll delay a week to ten days.” Smith “That would have killed –“ Craig “Oh it would have just stopped our sales.”