The lawsuit filed by Gloria Farber, Dulos’ mother-in-law, claims he owes her $2.5 million after her late husband, Hilliard Farber, loaned him money to finance his business.
However, Dulos said the money was not a loan but a gift.
“He was incredibly supportive,” Dulos said on the witness stand. “He provided advice…he was always there for me.”
He claimed Hillard invested the money in his company and eventually forgave his debts, not expecting the funds back.
In court, Dulos’ lawyer, William Murray, presented never before seen invoices that reportedly showed the records of hundreds of thousands of dollars the family says were loans were actually payments for work performed by his company the Fore Group.
He claimed that work was for Farber family’s Pound Ridge, New York, lake house.
“These are not payments, these are expenses,” Dulos said. “It’s mistakenly the plaintiff [that] has them as payments; that’s his problem.”
Dulos’ criminal defense attorney, Norm Pattis, also sat in on the proceedings.
Anything Dulos said on the stand could be used in future criminal proceedings.