Weinstock received a phone call from Jacques Catafago, Esq., who informed Weinstock that he was Walker's new attorney, replacing SS&D. Catafago explained that Walker had been "used" by Handler, and Walker now had wanted to come clean with the "truth". Walker then on went on admit during trial testimony, that he had been the 100% owner of "Realty Corp.”, that there had been no fraud, coercion or duress in his settlement with Weinstock on February 15, 1985. He also admitted that there was no fraud, coercion, or duress in his assigning the stock in "Realty Corp." as consideration for the settlement. Walker further admitted that Handler and his attorneys had instructed him to make these fraudulent allegations. He explained that he had to go along out of fear of certain "unspeakable" threats made by Handler. Walker then spoke to agents from the Federal Bureau of Investigation (FBI), concerning the foregoing. Walker gave a full statement to the agents and was very forthcoming with information regarding Handler. Additionally, Walker provided his new attorneys written answers to questions which corroborated that the scheme was created by Handler, CGS&H and SS&D. Those answers in the handwriting of one of Walker's new attorneys, was given by one of his new attorneys to Weinstock. No one could claim that the attorneys had no knowledge of the perjurious nature of Walker's testimony he would later offer in connection with the lawsuit, which inexplicably continued (even as to Walker's 32% admission) notwithstanding Walker's confession.
Now that Walker had told the truth, that he had knowingly voluntarily and willingly assigned all of his stock to Weinstock and that he was the owner of 100% of the stock of Realty Corp., it would seem that the lawsuit would die from exposure. Walker had confessed that the complaint was a fabrication instigated by Handler just like the first lawsuit. It should have resulted in a dismissal. Weinstock was encouraged by this development and filed a Motion for Summary Judgment, an application for the suit to be dismissed on the grounds that there were no issues of fact. Surprisingly, Walker's new attorney, Jacques Catafago, who had stated that Walker had merely been a "pawn" and who had heard Walker testify as to his participation in the fraud against Weinstock filed an opposition to Weinstock's motion for summary judgment. Mr. Catafago flatly admitted that his own client Walker had lied. However, he argued, that since the Court could not tell at which time Walker was lying, (whether in his previous affidavits or in his testimony) there were issues of fact that required the case to proceed to trial. The foregoing essentially proposed that a party could create a triable issue of material facts by testifying to two contradictory facts. This would require a Court to ignore a person's admission against his (penal) interest and to disregard the Walker confession that there was no fraud, coercion, duress or overreaching on Weinstock's part and that such claims had been fabricated. Further evidence of the irregularities in this case is the fact that Justice Lewis Douglass stated that "Weinstock concedes that defendant Walker was the sole cash investor in Realty Corp" and but, nevertheless awarded (rewarded) Handler 100% of the stock in Realty Corp. Thus, Justice Douglass of the Brooklyn Court accepted the incredible testimony of Walker and Handler, rejected the testimony of an FBI Agent and retroactively legitimized a case of bank fraud. As stated, the Court rewrote history by attributing a $4 million valuation "to the buildings"—a value achieved by the corporation only after the reversal by the Appellate Division 19 months after the assignment from Walker to Weinstock. In so doing, the Court also had to ignore the testimony of the seller in the original litigation and the seller's attorney who both testified that they were unwilling to pay more than "nuisance" value if 'Realty Corp." would forego the right to appeal the case which they had won. Although the seller's testimony was uncontroverted by anyone, the Court declared that the seller knowingly perjured himself. Both the seller and his attorney, Weinstock's former adversaries in the underlying case, testified in Weinstock's behalf. The seller also testified that the Handler team had stated to him that it had delayed proceedings subsequent to Weinstock's Appellate Division victory because they expected Weinstock to die. His testimony was uncontroverted.
Subsequent testimony of Handler and Rubin (Walker/Handler attorney) in the U.S. District Court put additional "nails in the coffin" to all of the allegations in the Brooklyn lawsuit which had been instituted by CGS&H and SS&D. At a hearing before U.S. District Court Judge Robert Patterson Jr., in attempts to enforce the FDIC judgment, Handler testified under oath with respect to "Realty Corp" that Walker had not only assigned his own stock to Weinstock, but also part of Handlers. Thus, undermining the decision of Justice Lewis Douglass. At that same time, Attorney Rubin testified that he knew that Walker was really indebted to Weinstock to the tune of $1.5 or $2 million. This testimony flew in the face of the Justice Douglass decision. One could not find a clearer and more conclusive evidence of the fraud perpetrated by Handler, Walker and their attorneys.