To: Richard C. Litman / Scott D. Woller, Esq. (WACHTEL MISSRY LLP) From: Michael Litman / analysis team Re: Litman v. Goldberg, Index No. 524343/2025 (N.Y. Sup. Ct., Kings County) — Q1 2026 Settlement Leverage Date: April 18, 2026 Classification: Attorney Work Product / Privileged
"The $18k for 3 months is meaningless unless we know what was billed and what was paid and from where. Tracking Eagle Bank trust balance may be key prior to getting bank statements."
This memo does two things: (1) reconstructs the four stages of the Q1 2026 money stream — Billed → Paid by client → Deposited where → Wired to Litman — using NGM's own 4/17/2026 production (36 files), and (2) freezes NGM's asserted Eagle Bank and BoA Escrow balances in writing so that any delta between NGM's ledger and the subpoenaed bank statements becomes provable spoliation on the day the statements arrive.
Termination anchor: July 18, 2025 (Findings #23, #54, #94, #106: email elimination on litigation-threat +1 day; USPTO BHC notice still directed to rlitman@nathlaw.com on 8/20/25; Amendment § 3 email-license breach; 8,024+ emails landed in "eliminated" accounts through 12/31/25).
STAGE 1 — Billed under Litman name $1,513,899.04 (AR Report Apr 2026, 496 inv)
└─ of which, dated ≥ 7/18/2025 $ 176,070.00 (35 inv, 100% outstanding)
└─ of which, dated in Q1 2026 $ 0.00 (ZERO — see §3)
STAGE 2 — Paid by client in Q1 2026 $ 127,052.78 (Payment Allocation, 3 mo)
├─ Jan 2026 $ 7,542.00 (3 dockets, 18 payment lines)
├─ Feb 2026 $ 115,374.00 (37 dockets, 311 payment lines)
└─ Mar 2026 $ 4,136.78 (2 dockets, 2 payment lines)
STAGE 3 — Deposited into trust (Trust Bank Journal)
Eagle Bank t23 — firm-wide Q1: $ 516,187.26 deposits / $ 571,688.00 disb.
BoA Escrow t3 — firm-wide Q1: $ 0.00 deposits / $ 16,918.78 disb.
STAGE 4 — Disbursed to operating (Q1)
Trust→Op transfers to Nath & Assoc: $ 264,615.00 (Jan+Feb+Mar, signed VG)
Other trust-to-op invoice transfers: $ 181,567.15
STAGE 5 — Wired to Litman $ 18,848.00 (Gould email 4/17/2026)
└─ Actually Paid in Q1 (per NGM): $ 0.00 (Summary shows "Paid = 0")
└─ Now accrued as "Total Now Due": $ 18,848.00
| Invoice Year | # | Billed | Paid | Outstanding |
|---|---|---|---|---|
| 2018 | 9 | $24,942.97 | $2,991.00 | $21,951.97 |
| 2019 | 12 | $25,675.00 | $3,385.00 | $22,290.00 |
| 2020 | 12 | $58,639.40 | $16,069.82 | $42,569.58 |
| 2021 | 38 | $39,060.00 | $0.00 | $39,060.00 |
| 2022 | 27 | $71,873.03 | $12,663.37 | $59,209.66 |
| 2023 | 38 | $154,633.35 | $9,076.14 | $145,557.21 |
| 2024 | 199 | $682,792.85 | $27,390.73 | $655,402.12 |
| 2025 | 161 | $456,282.44 | $5,410.00 | $450,872.44 |
| 2026 | 0 | $0.00 | $0.00 | $0.00 |
| TOTAL | 496 | $1,513,899.04 | $76,986.06 | $1,436,912.98 |
94.9% of invoiced dollars under Litman's name is outstanding. 100% of the outstanding balance is in the "Older" aging bucket.
35 invoices were dated between 7/19/2025 and 10/15/2025 — all still show Richard Litman as Collecting Lawyer. Every one is $0 paid.
| Metric | Value |
|---|---|
| # invoices | 35 |
| Total billed | $176,070.00 |
| Total paid | $0.00 |
| Total outstanding | $176,070.00 |
| Client concentration | 34/35 KSU, 1/35 UAEU |
| Date range | 7/22/2025 – 10/15/2025 |
| Latest | Inv 422573, 10/15/2025, docket 33070.01U (Sabah Al-Ahmad Center), $14,396 |
Full list in output/Q1_2026_BILLED_VS_PAID_DETAIL.md §2a and CSV output/Q1_2026_invoices_dated_q1.csv.
NGM's production contains no AR invoices dated 1/1/2026 – 3/31/2026 with Litman as Collecting Lawyer. Two interpretations, both useful:
Either interpretation supports a narrow written demand: "Confirm whether NGM issued any invoice dated in Q1 2026 that identified Richard Litman in any attorney role (Collecting, Originating, Responsible, Credit). If yes, produce them. If no, confirm that representation under oath."
| Month | Funds Received | Collected Fees | Disbursements | Dockets Receiving Funds | Payment Lines |
|---|---|---|---|---|---|
| Jan 2026 | $7,542.00 | $2,250.00 | $5,292.00 | 3 | 18 |
| Feb 2026 | $115,374.00 | $91,240.00 | $24,134.00 | 37 | 311 |
| Mar 2026 | $4,136.78 | $750.00 | $3,386.78 | 2 | 2 |
| Q1 2026 | $127,052.78 | $94,240.00 | $32,812.78 | 42 unique | 331 |
Every Feb 2026 KFU payment settled on a single date: 2/10/2026. This is a bulk KFU wire event against pre-existing invoices, not routine monthly collection.
Top dockets (Feb 2026):
| Docket | Client | Total Received | Invoice(s) |
|---|---|---|---|
| 33190.19U | King Faisal University | $13,320 | 421866, 422422, 422522 |
| 33190.20U | King Faisal University | $11,360 | 421855 |
| 33190.24U | King Faisal University | $11,206 | 422520 |
| 33190.26U | King Faisal University | $10,786 | 422405 |
| 33190.23U | King Faisal University | $10,310 | 421957 |
| 32490.47U | Sultan Qaboos University | $3,000 | 421057 (post-termination new client) |
| Client | Q1 2026 Received | Files | Payment Lines |
|---|---|---|---|
| King Faisal University | $112,374 | 36 | 304 |
| Sultan Qaboos University (Oman) NEW | $3,000 | 1 | 7 |
| King Saud University | $7,542 + $2,514 | 4 | 19 |
| Qatar Foundation NEW | $1,623 | 1 | 1 |
Sultan Qaboos and Qatar Foundation are NEW to the RCL-originated tag in 2026. Neither appears in the 905-patent backbone dataset. Attribution of these clients to Litman's originating-attorney slot happened after 7/18/2025 — each is a fresh § 51 use on internal records.
| Month | Opening | Deposits (#) | Deposits ($) | Disburse (#) | Disburse ($) | Net | Closing |
|---|---|---|---|---|---|---|---|
| Jan 2026 | $1,324,984.41 | 25 | $84,627.00 | 40 | $102,043.00 | −$17,416.00 | $1,307,568.41 |
| Feb 2026 | $1,294,242.41 | 32 | $395,031.10 | 52 | $355,516.00 | +$39,515.10 | $1,333,757.51 |
| Mar 2026 | $1,333,757.51 | 18 | $36,529.16 | 47 | $114,129.00 | −$77,599.84 | $1,256,157.67 |
⚠ Flag: $13,326.00 Jan→Feb Eagle Bank continuity gap. NGM's Feb 2026 opening ($1,294,242.41) is $13,326.00 lower than its own Jan 2026 closing ($1,307,568.41). That delta left Eagle Bank Trust_0495 sometime between 1/31/2026 and 2/1/2026 with no transaction captured in either monthly journal. This is the exact spoliation signature the Eagle Bank subpoena will surface and aligns with the Jan 31 → Feb 1 RCL-responsibility switchover pattern. Flag for 5/15/2026 production: the reconciliation worksheet that explains this gap, and any off-journal transaction that touched Eagle Bank on 1/31 or 2/1/2026.
| Month | Opening | Deposits | Disbursements | Closing |
|---|---|---|---|---|
| Jan 2026 | $96,231.64 | $0.00 | $15,296.00 (1 tran — Kuwait U docket 33050.10U) | $80,935.64 |
| Feb 2026 | $80,935.64 | $0.00 | $0.00 | $80,935.64 |
| Mar 2026 | $80,935.64 | $0.00 | $1,622.78 (1 tran — Qatar Foundation docket 32605.29) | $79,312.86 |
BoA Escrow had one outflow in Jan, zero movement in Feb, one outflow in March. The account is essentially dormant for the firm. Nevertheless, the RCL Trust Listing for January asserts Litman's matters hold $1,863,705.24 in this same account. That is the phantom.
The single biggest cash event in Q1 2026 on the Litman-originated pipeline:
| Date | Acct | Tran# | Docket | Counterparty | Direction | Amount |
|---|---|---|---|---|---|---|
| 2/9/2026 | t23 | 4000959 | 36372 | King Faisal University | IN (wire) | $291,173.00 |
| 2/10/2026 | t23 | 4001216 | 36372 | Nath & Associates PLLC | OUT (trust→op) | $224,113.00 |
$67,060 of the $291K wire net remained in Eagle Bank on KFU umbrella docket 36372 as of 3/31/2026. The $224,113 left trust to operating under the Nath & Associates PLLC receiving account on the morning after the wire cleared. Cross-reference: Finding #56 (KFU is the biggest post-SOL institutional client; Litman's name sits on every KFU application's USPTO correspondence address), and the AR Report shows KFU is also the target of the 35 post-termination invoices that remain unpaid.
Full transfer register in output/Q1_2026_TRUST_POSITIONS_AND_TRANSFERS.md §4 and CSV output/Q1_2026_trust_transfers.csv.
From Litman 2026 Summary_March.xlsx:
| Month | Funds Received | Collected Fees | 20% Due | Paid in Month | Running Total Due |
|---|---|---|---|---|---|
| Jan 2026 | $7,542.00 | $2,250.00 | $450.00 | $0.00 | $450.00 |
| Feb 2026 | $115,374.00 | $91,240.00 | $18,248.00 | $0.00 | $18,698.00 |
| Mar 2026 | $4,136.78 | $750.00 | $150.00 | $0.00 | $18,848.00 |
| Q1 2026 | $127,052.78 | $94,240.00 | $18,848.00 | $0.00 | $18,848.00 |
The Paid in Month column is zero for all three months. The $18,848 wire is accrued, not paid, through 3/31/2026. Gould's 4/17/2026 email stated it is "being wired shortly."
| Figure | Amount | Comment |
|---|---|---|
| Q1 2026 Collected Fees | $94,240 | NGM's own calculation base |
| Litman's 20% share | $18,848 | What Litman is to receive |
| NGM's 80% retained share | $75,392 | Revenue NGM earned on work billed, invoiced, and collected under Litman's name 9 months post-termination |
Note the production shows $188K "fees" attributed by the Payment Allocation reports but only $94,240 "Collected Fees" on the Summary. The Summary applies a 50% reduction before the 20% share is calculated. Scott's v2 reservation-of-rights letter (§2a) already demands the contractual basis for this halving; the Q1 2026 data is the live-fire example.
Purpose of this section: Freeze NGM's asserted Q1 2026 balances in a document we can serve on Connell Foley. Any subsequent bank statement that shows a different opening/closing balance, or flow inconsistent with NGM's own journals, is documentary spoliation.
| Month | NGM-Asserted Opening | Deposits (#/\$) | Disbursements (#/\$) | NGM-Asserted Closing |
|---|---|---|---|---|
| Jan 2026 | $1,324,984.41 | 25 / $84,627.00 | 40 / $102,043.00 | $1,307,568.41 |
| Feb 2026 | $1,294,242.41 | 32 / $395,031.10 | 52 / $355,516.00 | $1,333,757.51 |
| Mar 2026 | $1,333,757.51 | 18 / $36,529.16 | 47 / $114,129.00 | $1,256,157.67 |
Source: Trust Bank Journal Jan / Feb / Mar 2026.pdf + Trust Register Report Jan / Feb / Mar 2026.pdf, produced 4/17/2026 by NGM via Connell Foley. Author: MaryJane Harper, PracticeMaster v1.9.13x.
| Month | NGM-Asserted Opening | Deposits (#/\$) | Disbursements (#/\$) | NGM-Asserted Closing |
|---|---|---|---|---|
| Jan 2026 | $96,231.64 | 0 / $0.00 | 1 / $15,296.00 | $80,935.64 |
| Feb 2026 | $80,935.64 | 0 / $0.00 | 0 / $0.00 | $80,935.64 |
| Mar 2026 | $80,935.64 | 0 / $0.00 | 1 / $1,622.78 | $79,312.86 |
| Snapshot | Eagle Bank t23 (RCL) | BoA Escrow t3 (RCL) | RCL Total |
|---|---|---|---|
| Jan 31, 2026 (filtered — receipts-only) | $826,031.08 | $1,863,705.24 | $2,689,736.32 |
| Feb 28, 2026 (full snapshot) | $1,046,123.40 | $46,303.33 | $1,092,426.73 |
| Mar 31, 2026 (full snapshot) | $1,002,625.40 | $44,680.55 | $1,047,305.95 |
(a) The $1.78M BoA phantom (Jan 2026). RCL Trust Listing Jan 2026 asserts Litman-attributed matters hold $1,863,705.24 in BoA Escrow Acct_8777. The firm-wide Trust Register for the same account, same month shows opening $96,231.64, closing $80,935.64. Litman's purported share exceeds the account total by approximately $1,782,769.60. Both documents produced by NGM on 4/17/2026. Lockable on face of production.
(b) The Jan→Feb vanish (RCL attribution, no bank movement). 5 Kuwait University dockets totaling $68,280 appear on the RCL Jan 2026 listing but NOT on the Feb 2026 listing. No corresponding disbursement in either Eagle Bank or BoA across the Jan 31–Feb 1 window. The matters were reassigned off RCL as Responsible Attorney, not paid out. Dockets: 33050.12U ($15,296), 33050.08U ($14,296), 33050.02U ($13,396), 33050.05U ($12,896), 33050.13U ($12,396).
(Note: the previously quoted "$1.59M vanish" was based on comparing the filtered Jan listing total to the full Feb listing. Apples-to-apples, using the true snapshot methodology, the real vanish is the $68,280 above plus the $1.78M phantom resolution. Total RL-attributed trust-balance drop Jan 31→Feb 1, as disclosed on NGM's own listings: $2,689,736.32 → $1,092,426.73 = $1,597,309.59, of which ~$1.78M is phantom and must be accounted for.)
The strongest on-face evidence of live post-termination commercial use: every matter on the Feb/Mar 2026 RCL Trust Listing with a last-trust-entry date on or after 7/18/2025 is NGM treating Litman as Responsible Attorney today, on an active ledger, on work performed after he was terminated.
| Last Entry | Client | Matter | Description | Feb | Mar |
|---|---|---|---|---|---|
| 4/1/2026 | James Hurysz / Helena Zinkham | 16725.03 | U.S. Trademark Reg. 6,040,637 | 50 | 100 |
| 3/16/2026 | O'Brien, Wayne P. | 14695.05 | Interactive Holographic Human-Computer Interface | 1,180 | 2,360 |
| 3/4/2026 | King Saud University | 35610 | General Matter (umbrella) | 93,912 | 91,398 |
| 2/25/2026 | Johnson, Kevin F. | 32609.04X | Patent App 19/036,942 | 3,000 | 0 |
| 2/17/2026 | King Faisal University | 36372 | General Matter - KFU (umbrella) | 168,812 | 84,406 |
| 1/29/2026 | Concord Supply | 11060.54MX | Mexican Patent App MX/a/2021/015111 | 6,300 | 0 |
| 1/23/2026 | Kuwait University | 33050.02U | U.S. Patent App | 0 | 0 |
| 1/2/2026 | Al-Hamli, Mossab | 200801.03Y | U.S. Patent App 17/176,626 | 800 | 0 |
… plus 42 more matters with last-trust-entry between 7/29/2025 and 12/29/2025.
Full list in output/Q1_2026_TRUST_POSITIONS_AND_TRANSFERS.md §6B and CSV output/Q1_2026_rcl_trust_positions.csv.
Every one of these is an item of documentary evidence that NGM currently assigns Litman as Responsible Attorney on an active matter with activity dated after his 7/18/2025 termination.
| Metric | Q1 2026 | Scaling |
|---|---|---|
| Funds received on RCL-originated matters | $127,052.78 | ~$508K annualized |
| NGM's 80% retained revenue on RCL-originated work | $75,392 | ~$302K annualized |
| Billed under "Richard Litman" as Collecting Lawyer | $1,513,899 | present-day live AR |
| Outstanding under Litman's name | $1,436,913 | 94.9% of billed |
| Fresh invoices issued after 7/18/2025 termination | $176,070 | 35 discrete new § 51 uses |
| Matters still tagged "RL Responsible" with post-termination activity | 50 | each = continuing use |
| Trust Transfer Journal entries Q1 2026 | 150 | each = discrete accounting touch |
The 2/9 KFU wire was $291,173 — 2.3× the total funds received across all RCL matters all quarter. KFU is one client of 15 on the AR run. If one KFU wire can move $291K in a day, the forward pipeline under Litman's name is a multi-million dollar book that NGM continues to operate.
"Per your 4/17/2026 production: NGM took in $127,052.78 on Richard Litman's originated matters in Q1 2026, retained $75,392 of that as operating revenue, and accrued $18,848 owing to Litman while paying him $0 during the quarter. You continue to bill $1,513,899 under Mr. Litman's name as Collecting Lawyer on 496 live invoices — 35 of which, totaling $176,070, you issued after his July 18, 2025 termination. You currently treat Mr. Litman as Responsible Attorney on 50 matters with trust entries dated after his termination. On the firm's own January Trust Listing, you represented that Mr. Litman's matters held $1,863,705.24 in BoA Escrow Acct_8777, while the same January Trust Register showed that account's firm-wide balance was $80,935.64. Settlement must be calibrated to the full scale of admitted post-termination commercial use of Mr. Litman's name as reflected in your own client's records — not to the $18,848 snapshot."
project_court_status.md memory — add the $127K/quarter funds-received run-rate and the $75K/quarter NGM retained-share figure as new data points under Tier 5 (post-termination commercial exploitation).Input (produced by NGM via Connell Foley on 4/17/2026): 36 files in evidence/ngm_q1_2026_payment_backup_20260417/.
Analysis outputs:
- output/Q1_2026_BILLED_VS_PAID_DETAIL.md — full invoice-level xlsx extract (billed vs paid, per-client detail)
- output/Q1_2026_TRUST_BANK_FLOW.md — day-by-day Eagle Bank and BoA flow
- output/Q1_2026_TRUST_POSITIONS_AND_TRANSFERS.md — matter-level positions, Jan→Feb→Mar delta audit, transfer journal
- output/Q1_2026_PAYMENT_BACKUP_ANALYSIS.md — prior 4/17/2026 top-line analysis (superseded by this memo on reconciliation points)
- output/RESERVATION_OF_RIGHTS_LETTER_Q1_2026_v2.md — Scott's response letter
Raw CSVs:
- output/Q1_2026_invoices_dated_q1.csv (35 rows)
- output/Q1_2026_payments_received_detail.csv
- output/Q1_2026_trust_bank_transactions.csv
- output/Q1_2026_rcl_trust_positions.csv
- output/Q1_2026_trust_transfers.csv
Prepared from NGM's own 4/17/2026 production. All dollar figures traceable to specific NGM-produced documents. Author: Michael Litman / automated reconciliation pipeline. Cross-checks against RESEARCH_LOG.md Findings #23, #54, #94, #106 (7/18/2025 termination); ANOMALOUS_TRANSACTIONS_CATALOG.md (trust anomalies, the five-account architecture); and project_freedom_bank.md (undisclosed third trust account).