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IN THE SUPERIOR COURT #1 OF CLARK MU~Ii~

0 7 2010
STATE OF INDIANA t1

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CLERK·SUPERIOR COUFiT NO, 1
STATE OF INDIANA
VS, CASE #: 10D01-1006-FD-144
SCOTT M. DAVIS
DOB: 04-06-79

Jeffersonville Police Detective Sean Kennedy affirms that he believes and has good cause
to believe that in Clark County in the State of Indiana, Scott M. Davis committed the
offenses set forth in the Information, and that such belief is based upon the following facts
and information constituting probable cause:

On the date of April 29, 2010, I was contacted by the complainant in this case, Mrs. Kathy
S. Watkins of Jacksonville, Texas, who advised me she had been defrauded by an
individual in a Kentucky Derby tickets scam. Mrs. Watkins stated that she and her family
were currently staying at a hotel in Lexington, Kentucky, and had driven all the way from
Texas to an address in Jeffersonville, Indiana in attempts to get the tickets she purchased
from this individual in February, 2010. Mrs. Watkins then advised me that she purchased
these tickets through the internet at a website called DerbyDeals.Com and that after
arriving in the area and reaching out to others on the intemet about this website she
informed me.the invidual involved in this fraudulent sale of derby tickets is a Mr. Scott
Davis with a business called SMD Enterprises. I questioned Ms. Watkins what is the
address in Jeffersonville, Indiana she went to and she stated 3310 Highway 62E # 101.
She then stated that when she went to this location she discovered that it was a UPS store
that had individual mailboxes inside the store that Davis was using. Ms. Watkins states she
then realized she had been scammed. I asked herwhy she believed this to be the location
of the business for DerbyDeals/SMD Enterprises and she stated that it was on top of all
the correspondence she received via emails she had with this company and Mr. Davis,
including invoices of her purchases and ticket section/location for both the Kentucky Oaks
and Kentucky Derby tickets she had purchased. Ms. Watkins advised that she received the
tickets for the Kentucky Oaks from Mr. Davis via United States Postal Service back in
March, but Davis would never send her the Kentucky Derby tickets. She stated that Davis
would tell her that Fed-EX would not allow him to send the tickets and that during the week
leading into the Derby, Davis challenged her to drive to Louisville and try to 'find him.
Watkins states he would tell her that it was too late to mail the tickets for derby to her and
became irate and cursing at her telling her she would have to file a civil suit against him.
Approximately a half hour after talking with Ms. Watkins, I received a call from a ticket
broker that Mr. Davis was inside the Sheraton Hotel lobby selling Derby tickets. This
individual advised me he was familiar with Mr. Davis and described the clothing he had on.
Ithen left the Jeffersonville Detective offices and requested a uniform officer to assist me
in locating Mr. Davis at the Sheraton. I located Mr. Davis inside the lobby of the Sheraton
and was assisted by Patrolman Jeff Gordon. Mr. Davis identified himself on contact and
I questioned him where the Watkins family tickets are. Mr. Davis advised me he had them
and then requested I follow him to where he was conducting his business from, # 817 in
the Harbours Condominiums. Prior to walking up to this apartment, I advised Davis his
Miranda rights while Officer Gordon was present.

Once inside # 817 of the Harbours, the cousin of Mr. Davis identified as Christopher E.
Davis was located inside the condo. I was invited inside the condo by Mr. Davis. Corporal
Jason Vangilder, Corporal Greg Sumler, and Patrolman Denver Leverett assisted me
inside the condo with the investigation. I observed several invoices with DerbyDeals.com
scattered throughout the condo and a large amount of cash. I then observed in plain view
several Kentucky Oaks and a few Kentucky Derby tickets on a table in the living room. I
then asked Scott Davis if he owns and runs the business of SMD Enterprises and
DerbyDeals.com . Davis stated yes. I then asked Davis if he used the address of 3310
Highway 62E # 101 in Jeffersonville, Indiana to receive his payments for his ticket service
and he stated yes. After interviewing Davis and never getting direct answers from him, I
asked him if he had the tickets for the Watkins. Davis then admitted that he did not have
the exact tickets they purchased because he did not receive those exact tickets from an
individual he is working or doing business with. Davis then stated that a high profile
individual in Louisville was in business with him and did not come through with the tickets.
Davis then admitted that he can not come up with the tickets that he had sold to the
Watkins and that he would give them a full refund for their troubles. I asked Davis if he got
confrontational with the Watkins over the phone and he stated yes. Davis stated he
became frustrated that he sold tickets he did not have and that Watkins would not allow
him to fix the problem. I then asked Davis if he told Mrs. Watkins to come and find him and
file a civil suit against him and he stated yes. I advised Davis that I received information
that there is several other victims contacting the Watkins with the same complaint and he
agreed that there are several individuals that he received payments from for Kentucky
Derby tickets and he has not distributed them any tickets.

I then contacted the Chief of Detectives John Beury with the Jeffersonville Police and
advised him of my investigation .. Captain Beury contacted Deputy Prosecutor Jermey Mull
and I was advised to complete a police report and forward to the Clark County Prosecutor's
Office. Included with my case report will be invoices and correspondence provided to me
by the Watkins family that they received from Mr. Davis and DerbyDeals.com. Also
included will be accopy of Mrs. Watkins cancelled check in the amount of $ 5,000.00 The
invoice plainly states the amount the Watkins was charged for the tickets they never
received along with the section they were lead to believe they were purchasing. All
correspondence provided to me by the Watkins will be forwarded with my report to the
prosecutor's office.
On the date of May 5,2010, I made contact with Byron Ayers at the UPS Store located at
3310 Highway 62E # 101. Mr. Ayers provided me proof that Mr. Scott M. Davis is assigned
mailbox #101 for the address of 3310 Highway 62E in Jeffersonville, Indiana. Ayers
provided me copies of what Mr. Davis used to apply for this mailbox including his Kentucky
drivers license and vehicle registration. One application filled out by Davis for this mailbox
at the UPS store states that it is for the business of DerbyDeals.com. All copies provided
to me by Mr. Ayers will be included with my case report and sent to the Clark County
Prosecutors Office.

On the date of May 6, 2010, I received a telephone call from Mrs. Watkins stating she
received a cashiers check from DerbyDeals.com in the amount of $ 4,200.00. Watkins
states her daughter called a Chase Bank in Texas to verify it was a sufficient check and
it was verified by a bank member that they check was good.

On the date of "May 7, 2010, I made contact with the complainant, 82 year old Forrest
Minix of Nokomis, Florida via a telephone conversation. I questioned Mr. Minix if he
purchased tickets from DerbyDeals.com and a Mr. Scott Davis and he stated yes. I then
asked Minix if he was satisfied with his purchase based on an investigation I was
conducting regarding ticket fraud and he stated no. Mr. Minix was then asked to explain
his complaint and dealings with DerbyDeals.com and Mr. Davis.

Mr. Minix stated that sometime in the month of February, 2010, he mailed a check to the
address of 331 0 Highway 62E # 101 in Jeffersonville, Indiana. Mr. Minix that stated to me
on the phone he could not recall the exact amount of the check due to he was currently out
of town and did not have a copy of the invoice in hand, but believes it to be in the amount
of $ 4,000.00. He states he purchased both Kentucky Oaks tickets and Kentucky Derby
tickets with this transaction. Mr. Minix states as derby week approached he contacted Mr.
Davis via telephone and requested that he be allowed to meet with a representative with
DerbyDeals.com and be given his tickets in person due to traveling weeks leading up to
derby. Minix states that he spoke to Mr. Davis and he stated this would be no problem.
Minix states that on the date of April 29, 2010, he met with an individual at the Sheraton
Hotel parking lot in Jeffersonville, Indiana. Minix states he does not know this man's
identity, but states that this man informed him he does not work for DerbyDeals.com and
that he was only delivering the tickets for a favor for Scott Davis. Minix states he received
the tickets from this unknown male and the envelope only contained tickets to the Kentucky
Oaks and it was not the section he had paid for. Minix states he immediately called Davis
and told him that he believed he had just been scammed or defrauded and that he'wanted
the Kentucky Oaks tickets in the section the invoice indicated he was going to receive. Mr.
Minix states he attended the Oaks on tickets that Davis provided him and that he was
upset because he was an 82 year old male that did not want to sit in the direct sun all day,
but felt that after Davis told him it was the only tickets he could provide him, that he would
attend Oaks using those tickets.

Mr. Minix then states that after attending the Kentucky Oaks on April 30, 2010, he
contacted Mr. Davis and advised him he better have the tickets he purchased for the
Kentucky Derby or he was contacting the local police department. Minix states that Davjs
advised he was working on getting him the tickets for the section he purchased and he
would personally deliver him the tickets to the hotel he was staying at. Minix states that
Davis then called him back with a meeting time to receive the derby tickets in the
Wynngate Hotel lobby he was staying at located on Breckenridge Road in Louisville,
Kentucky. Mini' C states Davis never arrived at the set meeting time and that he eventually
fell asleep in his room. Minix states he the woke up on Derby morning to discover an
envelope shoved under his hotel room door. Minix states inside this envelope were tickets
to a section that was not what he had purchased from Davis. Minix states that he has been
attending the Kientucky Derby for many years and is very familiar with Churchill Downs
layout. Minix states that the tickets he was provided was definitely not of the same value
as the ones he purchased for Derby day from Davis and DerbyDeals.com. The envelope
contained $1,300 with a note from Davis saying "Here are your tickets + $1 ,300.00 to settle
things between us." Minix states he feels defrauded by Davis and the business of
DerbyDeals.com and would like to pursue charges on both parties. Minix states when he
returns to his home in Florida he will fax copies of all correspondence he has received,
including invoices and proof of payment, from Mr. Scott M. Davis and DerbyDeals.com .

On the date of May 12, 2010, I spoke to complainant Mr. Eric G. Lambert of Canal
winchester, Ohio via telephone conversation. I had received several phone messages from
Lambert advising me that he believes he has been defrauded or scammed by
DerbyDeals.com and Mr. Scott Davis. I then took Lambert's complaint over the telephone.

Lambert states that in late February or early March 2010, he made a payment using his
credit card via telephone. Lambert states this was done after receiving an agreement via
emails that the business of DerbyDeals.com had the tickets he wanted to purchase.
Lambert states after receiving the emailed confirmation he placed the charge on his credit
card with the understanding that his purchased tickets would not be available until Derby
week. Lambert states on the date of April 26, 2010, he contacted DerbyDeals.com and
asked to speak to Scott Davis to inquire about his purchased tickets and availability.
Lambert states an individual named Ken advised him that Davis was out of the office
attempting to obtain his tickets from some very influential people in the Louisville area.
Lambert states he immediately questioned and expressed his frustration about
DerbyDeals.com advising that they were attempting to locate his tickets and that he felt
that he had possibly been scammed by this company. Lambert states that he advised Ken
that he would call back on April 28, 2010, to get information of how to get his tickets.
Lambert states he continuously called DerbyDeals.com and Mr. Davis but could not get
them to 'answer or return his left messages. Lambert states at some point in making these
calls he would get a recorded voice message that the mailbox for the business phone
number was full. Lambert advised it was not until late evening on the date of April 29,
2010, that he was able to contact and speak to Davis via telephone. Lambert states he
immediately advised Davis of his frustration and concerns and that Davis advised him that
he had just taken care of his ticket order and mailed his (6) Kentucky Derby tickets via Fed-
EX. Lambert states that he could tell Davis was avoiding his questions and being deceptive
and at that point he asked Davis to give him the Fed-EX tracking number. Lambert states
Davis then got defensive and would not provide him with a tracking number to track the
shipment of tickets. Lambert states approximately (1) hour after Davis and his phone called
ended, he received a call from Davis with a Fed-Ex tracking number. Lambert states at this
point he did not believe Davis and that he contacted his mother to advise her of the
situation. Lambert states his mother became very upset that the family had been scammed
out of their tickets and that she purchased (6) new tickets to the Kentucky Derby so the
family could attend/continue with their anticipated trip. At this time, Lambert states he
discontinued phone conversation with Davis advising him that he was a liar.

Lambert states that on the date of April 30, 2010, he did receive tickets via Fed-EX from
DerbyDeals.com and Mr. Davis. Lambert advised these tickets that he received in the
package were (6) infield tickets to the Bacardy Rum tent. Lambert states these tickets were
nowhere near the value of the tickets he was lead to believe he was purchasing back in
late February or early March. Lambert states it clearly list in the correspondence he
received from DerbyDeals.com and Mr. Davis of the section he was purchasing when he
mailed the check. Lambert states the minute he received these (6) tickets he believed
something to be wrong with them, but states he took him with him to verify if they were real.
While attending the Kentucky Derbyon the newly purchased tickets by his mother, Lambert
states it started to rain, so the family went to the infield to see if the tickets Davis sent were
real. As they attempted to enter the Bacardy Rum Tent they were denied entry on (2) of
the tickets. Lambert states the ticket taker advised him (2) of the tickets were duplicates
or stolen. Lambert st$es he was directed to go to the Information/Guest Services tent in
the infield to report his situation. Lambert states when he talked to the Churchill Downs
employee at the information tent they stated to him they are already familiar with
DerbyDeals.com and Scott Davis and have fielded several complaints both Kentucky Oaks
and Derby day about stolen or duplicated tickets the company and Davis had given
individuals. Lambert states management from Churchill Downs gave him (2) bracelets
allowing entry with no seating into the Bacardy Rum tent.

On Monday, May 3, 2010 Det. John Beury spoke with John (Jack) Hannon of Tampa,
Florida via telephone. He advised that he had previously made a report with the Louisville
Metro Police Department in reference to theft. He said he was later notified by them that
the jurisdiction of the offense was in Jeffersonville, IN. Hannon advised that on 2/8/2010
he paid $6,648.00 to Derby Deals Com for Oaks and Derby tickets (3rd floor clubhouse,
section 312). The check was mailed to 3310 Hwy 62E, Jeffersonville, IN. Hannon said that
a Scott Davis is the person that he solely communicated with. He stated that after
communications with Mr. Davis on several occasions, he didn't receive the tickets at his
residence before he left for the derby. Hannon advised that on Thursday, April 29th, he
was at the Springhill Suites Hotel, 820 Phillips Ln., Louisville, having still not received any
tickets. On Friday morning, April 30th, he said the tickets were left for him at the desk of
the hotel. He aqvised that the tickets were only for the infield. Hannon advised he
attempted to call Davis and left a message stating he wasn't going to accept the tickets.
Davis made no attempt to call him back. Hannon advised that he didn't use the tickets.
A fax copy of the invoice, tickets and email conversations between Hannon and Davis were
sent to me from LMPD. Hannon stated that he wanted to press charges against Mr. Davis.

Later in the afternoon of May 3rd, Hannon left a message by voicemail stating that Mr.
Davis sent him an email message advising that in the next couple of days he should
receive a full refund via certified mail. Hannon said he would notify JPD if he receives the
refund.

Detective Shawn Kennedy was called out on Thursday, April 29 in reference to a

complainant advising they were victimized by Mr. Davis not supplying derby tickets that
they had paid several thousand dollars for. Davis was located at the Sheraton Hotel by
JPD. Davis took Kennedy to the Harbors Condominiums at 1 Riverpointe Plaza, Room
817, where he was running his ticket sales business. A report was taken by Kennedy on
that incident.

On Thursday, May 06, 2010, I spoke with John (Jack) Hannon. He advised that on
Tuesday, May 4,2010, he received a cashier's check (via FedEx) from Scott Davis for the
amount that he originally paid forthe tickets ($6,648.00). Hannon advised that he has been
out of town and hasn't been able to deposit the check. He stated that he was going to
deposit the check on this date. Hannon stated that he would advise me if the check is not
legitimate.

On Wednesday May 6,2010 Det. Brian Mitchell spoke with a Jennifer Orthwein of San
Francisco, California by telephone to file a Fraud report. Ms. Orthwein stated that she bid
on Derby and Oaks tickets on e-bay through DerbyDeals.com. She stated the person
selling the tickets did not respond to her bid. She stated the seller who was identified as
Scott Davis sent her an email stating that he was asking her if she still wanted to buy the
tickets she had bid on. She stated that she mailed a check for $19,750.00 on January 15,
2010 to 3310 Hwy 62 Jeffersonville, IN 47130 for 8 Oaks Tickets and 8 derby Tickets on
millionaires row. She stated the check was cashed on January 25,2010. Ms. Orthwein said
that there were several e-mails between her and Mr. Davis in reference to sending the
tickets to her. She said that approximately 1 '/ weeks prior to the Derby she attempted to
contact Mr. Davis in reference to mailing the tickets. She received an e-mail on Monday
April 26th stating that he was picking up the last half of her tickets and was inquiring about
hand delivering them to her hotel upon her arrival. She stated that on April 29, 2010 she
checked into the Best western in Clarksville, IN. she stated Mr. Davis was going to drop off
the tickets at 6pm. She stated he did not show up at that time, but he did arrive at
approximately 10:30pm and dropped off the tickets at the front desk. She stated that the
tickets were E-tickets that had Scott Davis name on them and they were forthe Infield VIP
Club and not the Millionaires row tickets. She stated that 4 of the 8 Oaks tickets were only
good forthe general Admission Infield and in orderto keep everyone in their party together
they paid an extra $200.00 at the track to upgrade the 4 tickets to infield VIP. She said that
she contacted Mr. Davis again on Friday night about the problem with the tickets. He
dropped off 4 replacement tickets on Derby Day. She stated 2 of those tickets were only
good for the general admission infield. She told me that Churchill Downs upgraded the 2
tickets to VIP at no cost. At this time Ms. Orthwein has not received any restitution.
Det. Brian Mitchell later contacted Jennifer Orthwein, who advised that she had received
a paymentof$19,720 from Scott Davis by mail several days after she had made a criminal
complaint.

On the date of May 10,2010, I went to the law office of Thomas Clay to interview Mr. Scott
Davis. I was assisted in this interview by Detective Brian Mitchell. Mr. Davis had an
attorney, Mr. Ted Walton, present during this interview.

During this taped interview, I questioned Davis how long he has been in the ticket broker
business. Davis said approximately (6) years. I asked Davis how long has the business
DerbyDeals.com been in operation and he advised (3) years. Ihe stated that SMD
Enterprises is the corporation and that DerbyDeals.com is the assumed name. I asked
Davis does he commonly sell tickets to his customers before he has possession of them
and he stated yes. I then asked Davis if he has prior to the recent allegations, ever not
been able to produce tickets for an event after collecting money from a customer. Davis
said yes, but that he has never had any civil or criminal action filed against him for selling
tickets.

I then questioned Davis what his remedy is to resolve the complaints that individuals have
filed against DerbyDeals.com. Davis states he has sent full refunds via United States
Postal Service certified mail to the individuals he knows he did not get tickets for. I advised
him that we are aware that he refunded both Ms. Watkins and Mr. Hannon, but I asked if
he had sent refunds to Mr. Minix and Ms. Orthwein. Davis stated he is currently working
on sending Ms. Orthwein a full refund and that he gave Mr. Minix $1,300.00 in an
envelope, along with two tickets to the Kentucky Derby in attempts to satisfy Minix and his
complaint. I asked how he provided the money and tickets to Mr. Minix and he stated late
in the evening he slipped it under Minix's hotel room door with the two tickets. I advised
Davis that Minix informed me that he believed that the total payment he sent to
DerbyDeals.com for Kentucky Oaks and Derby tickets was between $ 3,700.00 -$4,000.00
dollars. Davis agreed he believes those amounts to be correct. After both Davis and I
agreed that he did not provide the correct tickets for the Kentucky Oaks to Mr. Minix, I
asked him did he give Minix the tickets he purchased for the Derby. Davis stated no, but
that he provided him tickets along with the $1,300 dollars. I questioned Davis if the two
Derby tickets was worth $ 700.00 dollars each and he stated no. Davis admits that he
provided tickets of a lesser value to Minix and that the $ 1300 dollars and tickets that he
did provide did not add up to the $ 3,700.00 dollars Minix spent with DerbyDeals.com.
Davis then agreed that there could possibly be more individuals that have not come
forward to the police that he did not provide ticket to the Derby.

I then questioned Davis if he recalls after being given his Miranda Rights on the date of
April 29, 2010, what he said to me of the reason why he does not have the exact tickets
he has provided the above mentioned complainants. Davis stated that he remembers
telling us that a high-profiled individual in Louisville is the reason he does not have the
tickets he had sold. I asked him if he remembers telling me and uniformed officers that
Coach Rick Pitino did not come through getting him the tickets he had already sold to
customers and that he is the reason he is in the predicament he is in. Davis then states
that actually Coach Steve Masiello is the individual that did not provide him the tickets as
agreed, causing him to attempt to replace tickets for the customers by buying tickets in
different locations.
After the interview was completed, Davis was questioned about knowledge about another
ticket scam case Jeffersonville Police was investigating. Davis advised Detective Mitchell
and I that he received directly from Coach Masiello tickets when they met at the Yum
Center in Louisville, Kentucky. He stated that he received tickets for Turf table seating,
table 58, and that the customers he provided these tickets to was denied entry on Derby
for one of the two tickets. Detective Mitchell verified that these tickets Davis was referring
to are stolen tickets from Jeffersonville Police case # 2010-9591.

On May 17, 2010, Detective Shawn Kennedy and I interviewed Steve Masiello at Larry
Wilder's Law office. Also present during the interview were Larry Wilder and Tim McCall.
Mr. Masiello stated that in 2009 a friend of his Steve Netherton contacted Mr. Masiello and
told him he could get Kentucky Derby tickets. Mr. Masiello said that he bought Derby
Tickets from Mr. Steve Netherton for his mother and other family members to attend the
Kentucky Derby last year. He stated that Steve Netherton got him turf club seats and he
stated that they had a great experience at the Derby. In late March of 201 0 He stated that
he was contacted by a Ken Worth who was a friend of the family that Steve has known for
over 16years. Steve stated that he played high school basketball with Ken's son Chris. He
stated that Ken ask him if it would be alright if a friend of his could contact him and try and
help him get Derby Tickets or put him in touch with someone that could get tickets. Mr.
Masiello told him it would be alright. He stated soon after that conversation he received a
voice mail from a subject identifying himself as Scott Davis.

Mr. Masiello stated that he contacted Chris Worth by phone. He stated that he told Chris
that he had just got a voice mail from Scott Davis and ask Chris if he wanted him to help
him out by pointing him in the right direction to get Derby tickets. He said that Chris told
him that Scott was a good friend and friend of the family and to help him get tickets if
possible. He stated that he was told that he had met Scott Davis a couple years earlier
when Ken Worth came into town there was a lunch meeting at J Alexander's in Louisville,
KY. Steve stated he did not remember Scott Davis being there. Steve stated the only
reason he stopped by was because Ken Worth ask him to. Steve stated after speaking with
Chris he called Scott Davis back. He stated that Scott told him that he was looking to
obtain Derby tickets and wanted to know if he knew anyone. Steve told him that he would
call his friend Steve Netherton since Steve had got Derby Tickets for him the year before
and Mr. Netherton seemed to have access to Tickets. Mr. Masiello called Mr. Netherton
and told' him that he had some friends from the Connicuit New York area looking for Derby
tickets and was wanting to know if he could help them out. He said that Mr. Netherton told
him "no problem I'll see what I can do". Mr. Masiello stated he them put the two of them
together in an introduction setting in his office at the Yum Center. He stated that after they
were introduced they started going back and forth on who they knew at the track. Mr.
Masiello stated he at that time he did not know either Scott Davis of Steve Netherton were
Ticket Brokers. He stated that Mr. Davis handed over a "wish List" of requested tickets on
a sheet of paper to Steve Netherton. He stated Netherton looked over the list and told Mr.
Davis that this should not be a problem. He stated that approximately $20,000 was
exchanged between Davis and Netherton.

Mr. Masiello stated this first meeting occurred approximately one month before the Derby.
Mr. Masiello said that Davis called him and said anything he (Netherton) can get his hands
on referring to Tickets. Masiello said that Davis told him he has bags of cash. He said he
told Davis that he would let Steve know and if there was anyway he could do he was sure
Netherton would take care of him. Masiello said he had no idea Steve Netherton had a
criminal record or what type of person he was. He stated he met Steve Netherton through
Louisville Basketball and a person who he considers a very good friend and who he went
to school with did some babysitting for Steve Netherton and his wife. He said he didn't think
anything wrong. He said that he saw him at the games; he was friends of former players.
He said that Netherton called him and told him he was going out of town and when he
returned he was going to make getting the tickets a Priority. Masiello stated that Netherton
was always giving him updates on what was going on. Masiello again stated his only
interest in this was he was helping Ken Worth. He stated that Netherton told him he could
get all the tickets on the list but was going to need more money. Masiello stated he relayed
that information to Davis. He said Davis told him whatever he wants, 20, 30 thousand
Masiello said that no I think $10,000.

He stated he met Davis who gave him an envelope with money in it. Masiello stated he
gave that money to Netherton. He stated to his knowledge that money was used to get
Tickets. He stated there was another meeting between Davis and Netherton. He said he
was traveling a lot due to recruiting. He told both of them that he introduced them and they
need to contact each other and see what can be worked out between them. He said that
right before he was leaving town he was contacted by Netherton and said that he needed
more money to take to the track for a certain set of tickets. He said that he called Davis
and told him that Steve was getting things in hand this week but needed more money for
certain tickets. He said that Davis told him that he would meet him at his office to give him
more money. Masiello stated he was headed to the airport for meetings and he would get
with him when he returned. He said that Davis met him at the Airport and handed Masiello
an envelope with cash. Masiello stated he was unsure how much was in it. He stated when
he returned from his Day trip he handed the money over to Netherton. Masiello stated
Davis was starting to call more and Masiello told him to start dealing with Netherton
directly. Masiello stated that Davis told him he was going to make him a rich man. Masiello
stated he stopped him and stated he did not want anything forthis he stated he was doing
this for one reason as a favor to Ken Worth. He saying I'm going to make you a lot of
money. Masiello again stated that he didn't need anything from Davis. He told him that he
has a career and did not need anything from him.

Masiello stated he got a call from Netherton who told him he had tickets in hand and ask
him to call Davis. Masiello stated he called Davis and told him that Netherton had some
tickets. He told Davis that he was meeting a friend at Molly Malone's and told him he could
stop by. Masiello stated that Netherton and Davis came to Molly Malone's separate. He
said that tickets were exchanged between Netherton and Davis. Masiello stated as time
goes on Davis continues to call him asking about certain tickets he said that Davis was
getting very specific talking about different sections at the track. He told Davis to give
Netherton a call and he would explain. Masiello stated he got a call from Netherton who
was telling him that certain tickets had not been released. Masiello stated he was basically
relaying information from Netherton to Davis about the ticket situation. Masiello stated he
received tickets from Netherton and gave them to Davis. Masiello stated he never saw any
of the tickets that were given to Davis. Masiello stated he was on recruiting trips and was
still getting call from Davis. Again Masiello stated he told Davis to contact Netherton. He
advised him this was not his deal. Masiello stated another meeting took place between
Davis and Netherton at the Starbuck's near Papa John's Stadium, he said $20, and 0000
was exchanged in that meeting. He said that approximately 1 week priorto the Derby Davis
called Masiello and ask if Netherton got the tickets he promised him. He called Netherton
and ask if he got the tickets for Davis and he stated that he could not get all the tickets he
said he could. Masiello stated Davis ask him where his money was. He stated to him that
he assumes Netherton still has your money since he couldn't get the ticket for him.
Masiello stated that he called Netherton and ask him where Davis's money was. Netherton
told him he had $10, 0000 of it. Masiello told Netherton to drive to his house and give him
the money so he could give Davis his money back to him. Masiello stated that when
Netherton came over to his house he told him that he needed to get him his money or get
him the tickets. He called Davis and told him that he had $10,000 of the $20,000. Masiello
stated he had someone drive to meet Scott Davis and gave him $10, 0000. Masiello stated
that was his last contact with Davis.

Steve Masiello also submitted to an interview on Friday May 14, 2010, and stated that he
did not keep any money for himself that he received from Scott Davis for Derby Tickets;
that he turned over all money received from Scott Davis for Derby Tickets to Steve
Netherton; and that he never promised Scott Davis that he personally would procure those
Derby Tickets for him.

The Office of Indiana Secretary of State was contacted and stated that neither SMD
Enterprises nor DerbyDeals.com nor Scott M. Davis is registered to do business in the
State of Indiana.

The Office of the Indiana Department of Revenue was contacted and stated that neither
SMD Enterprises nor DerbyDeals.com nor Scott M. Davis have applied for or obtained a
registered Indiana retail merchant's certificate, and that no state gross retail or use taxes
have been collected or remitted to the State of Indiana by SMD Enterprises nor
DerbyDeals.com nor Scott M. Davis.

The Office of the Clark County Recorder, Richard P. Jones, was contacted and stated that
neither SMD Enterprises nor DerbyDeals.com nor Scott M. Davis have applied for or filed
a Certificate of A~sumed Name to transact business in the State of Indiana.

I believe the persons of Kathy S. Watkins, Forest Minix, Eric G. Lambert, John Hannon,
and Jennifer Orthwein to be credible and the information they provided to be reliable in that
they are victims of the above described offenses, spoke from personal first hand
knowledge of these events, and were corroborated by other aspects of my investigation.
I AFFIRM, UNDER PENAL TIES FOR PERJURY, THA T THE FOREGOING REPRESENTA TlONS ARE TRUE.
DA TED THIS 7TH DA Y OF JUNE, 2010.

Det. Sean Kenn dy

Jeffersonville Police Departm