USA v Harris Doc 317 Filed 03 Jun 13

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F I L E D I N C L E R K ' S O F F I C EU . S . D . C . Atlanta

MAY 3 1 2013UNITED STATES COURT OF APPEALS

FOR THE ELEVENTR CIRCUIT56 F o r s y t h S t r e e t N.W.

A t l a n t a , GA 30303

4 P & S - , N , H A T T E N , C L E R

OTITED STATES OF AMERICA,A p p e l l e e . ( Case: 12-11126-DD( 12-11178-DD) l:09-cr-00406-TCB-JFK) MOTION TO VACATE, SET-ASIDE, CORRECT) OR REMAND FOR DISMISSAL A JURY GUILTY^ VERDICT UNDER F.R.Civ.P 6 0 ( b ) .

- v e r s u s

;KTifTis P a u l H a r r i s , Benjamin S t a n l e y ,A p p e l l a n t s .

Res i n t e r a l i o s a c t a to c e r t a i n p a r t i e s . P e t i t i o n e r / A p p e l l a n t BenjaminS t a n l e y ( h e r e i n a f t e r A p p e l l a n t ) i s f i l i n g t h i s Motion i n accordance w i t h

Atendment I t o the C o n s t i t u t i o n of t h e U n i t e d S t a t e s of America t h e r e i n e x e r c i s i n gmj a u t h o r i t y to r e d r e s s the c o u r t f o r g r i e v a n c e s because A p p e l l a n t d i d not havea f a i r t r i a l ; because A p p e l l a n t , due to f r a u d by h i s a c c u s e r s and Respondent,w a s p r e v e n t e d from h a v i n g a f a i r t r i a l ; and because of v i o l a t i o n of A p p e l l a n t ' sr i g h t s under the S i x t h Amendment, he was p r e v e n t e d from p r e s e n t i n g evidencea n d A p p e l l a n t ' s s i d e of the c a s e ; because of I n e f f e c t i v e A s s i s t a n c e of C o u n s e l ;a n d because of a p p l i c a t i o n of c r i m i n a l law where due to the Laws of O b l i g a t i o n sa n d C o n t r a c t s , C o n t r a c t law s h o u l d have been u t i l i z e d because i t r e q u i r e d examin a t i o n of the c o n t r a c t i n g p a r t i e s , not A p p e l l a n t and a c t o r s .

T h i s Motion i s t r u e , c o r r e c t , not meant to m i s l e a d and f i l e d under p e n a l t yo f p e r j u r y f o r d e l i v e r a n c e of the a c t u a l f a c t s as needed f o r d e p o r t a t i o n andi n c o r p o r a t i o n i n t o t h i s r e c o r d of c o u r t p r o c e e d i n g s f o r case numbered above.I t s i n t e n t i s meant t o c o r r e c t , bear w i t n e s s to e r r o r s i n the charges and toshow A p p e l l a n t S t a n l e y i s not a p a r t y to the f e d e r a l c h a r g e s , s e p a r a t eA p p e l l a n t from f a l s e statements by A p p e l l e e to i n c l u d e i n v e s t i g a t o r y pe r so n n el ;f a l s e statements by t he SEC a t t o r n e y A l a n a B l a c k and o t h e r s as raay ap pl y. ComV. Mangini, 478 P a . 147, 386 A.2d 482, 490 S. Ct. 78, 90L.Ed 30 ( 1 9 4 5 ) .P e r j u r y undermines the f u n c t i o n and p r o v i n c e of the law and t h r e a t e n s thei n t e g r i t y of judgments t h a t ar e the b a s i s of the l e g a l system. See U.S. v.

1

Case 1:09-cr-00406-TCB-JFK Document 317 Filed 05/31/13 Page 1 of 135


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Dunnigan, 507 U.S. 87, 97, 113 S. C t . 1111 , 122L.Ed,2d 445 (1993) " t o uphold t h e

i n t e g r i t y of our t r i a l system...the c o n s t i t u t i o n a l i t y o f p e r l u r y . s t a t u t e s i s

u i i q u e s t i o n e d ) U n l i k e s p e e c l i i n o t h e r c o n t e x t s , t e s t i m o n y under oath has th e

f o x ' i i i a l i t y and g r a v i t y necessary t o i^erriind t h e w i t n e s s t h a t h i s or her statements

w i l l be th e b a s i s f o r o f f i c i a l governmental a c t i o n t h a t o f t e n a f f e c t s t h e r i g h t s

and l i b e r t i e s o f o t h e r s . Sworn t e s t i m o n y i s q u i t e d i s t i n c t from l i e s no t spoken

under oath and s i m p l y i n t e n d e d t o p u f f up o n e s e l f . " U,S. v, X a v i e r A l v a r e z , S,

C t . 132 S, Ct . 2537; 183 L, Ed . 2d 574 ; 2012 U.S. L e x i s 4879; 80 US. L.W. 4634;

40 Media L. Rep. 1953; 23 F l a L. Weekly Fed. S, 468 No.11-210, Feb 22, 2012

Argued; June 28, 2012. Decided.

"The f e d e r a l s t a t u t e p r o h i b i t i n g [183 L. Ed . 2d 5891 f a l s e statements t o

government o f f i c i a l s p u n i s h e s " whoever, i n any matter w i t h i n t h e j u r i s d i c t i o n of

t h e e x e c u t i v e , l e g i s l a t i v e or j u d i c i a l branch of the government...makes any

m a t e r i a l l y f a l s e , f i c t i t i o u s , o r f r a u d u l e n t statement o r m i s r e p r e s e n t a t i o n , " 18

use lC01s p r o h i b i t i o n on f a l s e statements made t o Government o f f i c i a l s , i n

communications c o n c e r n i n g o f f i c i a l m a t t e r s , does not l e a d to the broader

p r o p o s i t i o n t h a t f a l s e statements a r e u n p r o t e c t e d when made t o any person, a t any

time, i n a ny c o n t e x t . "

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Key Elements to E l i m i n a t eBENJAMIN F. STANLEY FROM THE CASE

The key element " m i s r e p r e s e n t a t i o n i n the r a d i o broadcast and l y i n g to

i n v e s t o r s " P e t i t i o n e r p r o v id e s t h a t h i s statement was not a m i s r e p r e s e n t a t i o n

a n d t h e t r u t h i s d i s c l o s e d h e r e i n . P r o s e c u t o r s accused P e t i t i o n e r St an le y of

l y i n g to i n v e s t o r s about bonds i n a r a d i o announcement. The t r u e f a c t s are t h a t

P e t i t i o n e r was on the telephone w i t h the r a d i o s t a t i o n coimnentator and CEO Rufus

P a u l H a r r i s to p a r t i c i p a t e i n r e s o l v i n g a naked s h o r t , and th e r e l e a s i n g of

r e s t r i c t i v e shares i n r o the market p l a c e . In response to the commentator,

P e t i t i o n e r responded based upon o v e r b r e a d t h and r e l i e d upon the f a c t s t ha t the

bonds had been a u t h e n t i c a t e d by the p a r t i e s to the c o n t r a c t and approved by

a t t o r n e y s , b e f o r e the merger, t ha t a l l the necessary i n f o r m a t i o n was r e l e a s e d

t o the p u b l i c and h i s statement b e i n g o v e r b r e a d t h r e p l i e d t h a t , '"the company

owned the bonds and m u l t i p l e s i gn e d c o n t r a c t u r a l p r o j e c t s p r i o r to merger and

t h e i n f o r m a t i o n had been p u b l is h e d i n m u l t i p l e p u b l i c a t i o n s p r i o r to h i s

statements.

F u r t h e r p r o s e c u t o r s a l l e g e d " S t a n l e y had p a r t i c i p a t e d i n a s i m i l a r pump and

dump'' scheme at a company c a l l e d Broadband W i r e l e s s . " That statement i s a scheme



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and a l l e g a t i o n t o d e c e i v e the j u r i s t and eioud the c u r r e n t f r a u d a g a i n s t A p p e l l a n t

There i s no known c o u r t or t r i a l evidence or i n f o r m a t i o n t o prove such a statement

P e t i t i o n e r S t a n l e y i s accused o f A i d i n g and A b e t t i n g i n t h e p r e p a r a t i o n of

f i n a n c i a l statements done by CEO H a r r i s , F i r s t I d e f i n e a i d and abet as

" i n t e n t i o n a l l y h e l p or encourage another person t o commit a c r i m e .

P e t i t i o n e r S t a n l e y was h i r e d by c o n t r a c t i n t o a company t h a t a l r e a d y e x i s t e d .

I t had i t s c o r p o r a ti o n docu ments , CEO, c o r p o r a t e a t t o r n e y , s e c r e t a r y , t r e a s u r e r

and numerous i n v e s t o r s . The company had i t s a s s e t s. The a s s e t s / f i n a n c i a l r e c o r d s

were a l r e a d y i n p l a c e when P e t i t i o n e r was h i r e d a t Waatle I n c .

Waatle I n c . merged w i t h C o n ve r s io n S o l u t i o n s . A l l s h a r e h o l d er s , o f f i c e r s ,

and f i n a n c i a l r e c o r d s were merged i n t o C o n v er s i o n S o l u t i o n s as w e l l . With Rufus

P a u l K a r r i s b ei n g th e CEO, he h i r e d by c o n t r a c t Sabra Dabbs, Ismet Paez, and

Romeo V e n d e t t i . Sabra Dabbs and Ismet Paez brought Venezula and F i n n i s h Bond

C o n t r a c t s t o C o n v e r s i o n S o l u t i o n s . Raieo Vandetti was hired to authenticate and apothe-

cate the bonds. The a t t o r n e y s and p a r t i e s to, the c o n t r a c t s , t he c e r t i f i e d p u b l i c

accounts and the c h i e f f i n a n c i a l o f f i c e r s a u t h e n t i c a t e d t he Venezula and F i n n i s h

Bonds then o b v i o u s l y c r e d i t e d C o n v e rs i o n S o l u t i o n w i t h th e A s s e t s per c o n t r a c t

t h e r e b y c a u s i n g a change to th e f i n a n c i a l statement. P e t i t i o n e r S t a n l e y wasr e s i n t e r a l i o s a c t a .



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SABRA DABBS CONTRACT

Next, the a l l e g e d i l l e g a l d e v i c e supposedly p e r p e t r a t e d by A p p e l l a n t S t a n l e ynever e x i s t e d . On March 14, 2006 Ms. Sabra Dabbs i n s t r u c t e d Mr. H a r r i s on theprocedures f o r e x e c u t i n g the VB-1 Bond t r a n s a c t i o n which i n c l u d e d payment of$400,000 w i t h i n 72 hours a f t e r t r a n s f e r of the bond. The i n s t r u c t i o n s to H a r r i swere f o l l o w e d by a "Deal Memo" which s p e c i f i e d employment of Sabra D. Dabbs,That document f o l l o w s . Behind t h a t document i s a B i n d i n g L e t t e r of I n t e n t (4pages) dated March 15, 2006 a u t h e n t i c a t e d by Rufus P a u l H a r r i s ; Sabra Dabbs, andO tt G i r a ( P a r t i e s to the c o n t r a c t ) . A p p e l l a n t S t a nl e y had no involvement whatsoever i n the c o n t r a c t . He was Res i n t e r a l i o s a c t a .

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Tuesday, March 14,2006

Deal Memo125 Town Park Drive Suite 300K ennesaw, GA 3Q144(P) 770-420-B270(F) 404-393-9824www.cvsu.us

Members of management of our respective company wouid lilce to offer thepossibility of a strategic transaction in which Conversion Solutions, Inc. ("CVSU")would like to extend to you the followiag offer in the form ofthis Deal Memo.

P o s i t i o n : Executive Vice President ofGlobal InvestmentsSalary: $200,000.00 Annually plus Investment AgreementsOther Compensation: 2,000,000 (Two Million) shares ofCVSU stockTerms ofthis letter are as follows;

1.) Confidentiality. The parties to this Merrlo agree that all confidentialinformation that such party or any of their respective officers, directors,employees, counsel, accountants, or other representatives may now possess ormay hereafter obtain relating to the other party shaU be held in confidence.

2.) Special Transaction. The transaction to be known as Investment Number20061403 and referenced rom his point forward as (VB-1). The companyupon acceptance ofthis letter hereby grants ftill authority to act on the behalfofCVSU with a limited signature authority to Sabra Dabbs as Executive VicePresident of Global Investments. The signature authority and any additionalpersonal compensation will be TBD and defmed per Investment agreement.

We look forward to working together and ifyou have any questions or would liketo discuss the contents of this letter fiirther, please feel ree o contact me at (678) 255-7650.AGREED TO AND ACCEPTED AS OF THE DATE OF TfflS LETTER:Conversion Solutions, Inc.;

Title: Chairman and CEO

By: Sabra Dabbs3933 Pine Hurst Way Duluth, GA 30096

Confidential Page 1 ofl 3/15/2m64b



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BINDING LEHER OF INTENTThis Binding Letter of Intent ('BLCH") is made and entered into by and among the foHowing named "Parties" effecfive as of the 15thDay of March 2006.

CONVERSION SOLUTIOMSINC. and its subsidiaries and affiliated companies ("CVSU")CVSU is located at 125 TownParis Drive Suite 300, Kenn^aw, GA 30144. C V S U is a diversified holdings corporation, which wasformed to originate, iiind and source funding for asset-based ran sactions n the private market CVSU's main SKvice wii be toacquire, flind and provide insurance to target companies In Sie cun-ently undeserved $15,000,000 to $100,000,000 asset ftiancemarket CVSU funding will enable our businesses to compete more effectively, improve operatiwis and increase valuaS A B t ^ D ^ B S . individual or her assign ('SD1SD is located at 3933 PineHurst Way, Duluth GA, 30096.

OTT GIRA. individual or h is assign COG'^O G is located al 10662 Frontenac Woods, St Louis, MO 53131.

1. BINDING L E T T E R O F INTENTiThe Parlies agree to forni this Bincfing Letter of intent {'BLOt") to jdntiy develc s business in orda to strategically and mutuallyl)enefit rom he unique services of mdt par^.

2. DUTIES OF PARTIES;

Each Party, having been selected to provide unique abilities to the team, agrees to bring to the BLOl its knowledge and abilities asheran setforlh, nam^y:

CVSU: originate, fund and source funding for asset-based transadons in the private mari


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C Since the management and operation of each patty is st l sdely the responsibility of each of the respective parfy, therespective parly shal! s d in good faitti and s o M the recommendations of the other party butretain ihe exclusive controlover operational dedsions and setting of profit margins within industry norms.

D. All Parties shall act ingood faith to protect the interests of the other strategic aliiance member in the execution of Sieirrespective responsibilities. Neither party shall, intaitionally or unintenfion^, influence or misdirect the prqect againstfhe other party.

E. All dient con-espondenoes, legal or othetvwse, to indude but not limited to, contracte and agreements, shall be madeavailable to all parties of the BLOl upon request

4. COMPENSATION AND AUTHORITY

A. CVSU will extend tie ollowing to SD:Position: Executive Vice President of Global InvesbnentsSalary: US$200,000.00 Annually plus Inveshnent Agreements TBD on projeAby preyed case basts.Other Compensation: Upon shares release date 2,000,000 (Two Million) shares of CVSU stock to SD or her assign.Tlie signature mifeori^ and any additional perstaial compensation wiH be TBD and defined per Investmwit agreement

B. CVSU win extend the following to OG :Position; PresidentSalary: US$200,000.00 Annually plus Investment Agreements TBD on project by prqect case basis.Other Compensafion: Upon shares release date 2000,000 (Two Million) shares of CVSU stock to O G or his assign.The signature authonty and any additional personal compensation will be TBD and defined per Investment agreement

Spedal Transaction. The transaction to be known as Investment Number 20061403 and referenced from this point forward a s{VB-1). CVSU upon acceptance of Ihis letter hereby grants full authority to act on the behalf of CVSU with a limited signatureauthority to Sabra Dabbs as Executive Vice Presidenl of Global Investments.

SD Signature Authority. SD wiilhave Co^ighature authority over Funding Agreement Number 252455770-03142006 and anyother deal procuredby S D . SD will have Co-signature auShorfly m any offehore account eurodKf f account and any otheragreements, bank accounts in relafion to this transaction.

Exit Strategy: SD will be permitted to transfer spedal transaction VB-1 in fhe event of nonferformance, defined as not achieving amilestone of a minimum 50% ROI per week. Bond is fo be released to SD within 72 hours ofwritten notice of non-perfomiance.

PowertHouse Funding Payment Tenns: PHF or ite assign will receive biweekly 25% of all profits originated from Notes purchasesand sale, ay he date (the "Due Date" which is expected to be 42 weeks wiftt rd ls and extensions) on which any paymentbecomes due in respect ofthe Notes seixired by Funding Agreement Number. 252455770-03142006. CVSU will arrange andbear the cost of establishing PHF's offshore account in (Nation to this transaction.Trade involvemait SD and 0 6 will have full a c c ^ s to any mutually agreed trade invdvements, funding agreemente, businessopportunity and any other deal procured by SD or 00.

2\ IN!T!.AL,-S

1 uvsu 1 SD OG

4d Sabra-VB-00 0



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5. NON-COM PETE, NON-CIRCUMVENT, NON-EXCLUSIVE:All parties vwll still retain ownership of each customer it introduced to C V S U . Any new customer acquired as Ihe result of the BLOlwill be considered as the property of the BLOL All parties will not compete and circumvent each oBier and offw each other'scustomers the same products and services rom he other company. All parlies will have the right to conSnue doing its businesswith dher companies outside e BLOl. Any public representaficm of anotha- party's products and sei>nces wiil have to beapproved by all parties in writing^ _

6. C O S T S :

CVSU vwll bear arry costs pertaining to this BLOL

7. CONFIDE NTIAUTY -BUSIN ESS OPPORTUNITIES:

The parties to this BLOl agree that aB confidential information that such party or any of their respective officers, diredors,emptoyees, couns^ accountants, or other representafivesmay now possess or may hereafter obtain relating to tie cfflier partyshall be held in confidence.

The Parties agree that they and their affifetes MR keep confidential all discussions and infomiafion that pertain to tie BLOl, andWiB not disdose tie existence and iie nature of tie discussions, disdose any Part/s idaitily or divulge any non-public infomiaflonto any third party isithisit tie otiier Party's consent No Party shall issue press rdeases, adverfising, orpuWidfy conceming ttieBLOl wittiout priorwritten approval of tie ottier Party except as may be required by law. The Parties agree tiat heyw i not seekto t^ e advantage of tie business opportuniflesto which any Party inb-oduces to another Party other than tiroughpartidpaHon inthe proposed BLOl unless ottietwise agreed by tie ottier Party. The parties agree to procure tie compliance by their affiliateswitti tiisdause.

8. TERMINATION:

This BLOl can be temiinated at any given date (upon 30-calendar days nofice), which Uie Parttes may mutually agree in writing.Any termination hereunder shall not affect tie accmedrightsand obligatiwisof tie Parties, induding without Hmitation ttie Parties'respecttve ofarigafions with r^a rd to exdusivity, business opportunities, and confidrntiaiiiy.

Any and all hransacfions produced by S D or OG , including all instrumaitsvwD be retumed. Any related procea ls during flie 30day notice will be payable.

Upon taniinafion, no party nllhave any oMgafions towards flie ottisrparties however, ttie dauses of damages (artide 12),Mnfidenfialily (artide 7), costs (artide 6) and non-compete iton-drcumvent and non- exclusive (artide5), w i surwve flietenminaSon for 5 (five) years from tie ime tie agreement is temiinated or any of flie parties no longer in business.

9, AUTHORITY:

No Party has any auBioritywhatsoever to assume, represent or create any obSgatioo on behalf of any ottier Party wittiout suchother Party's express written consent

3IMITIALS

4eSabra-VB-0000



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A P P R O V E D 3/15/06

10. ASSIGNMENT:

This BLOl may not be assigned by any of fhe Parties vsithout prior witten consent of Bte other Party.

11 . DISPUTES AND GOVERNING U W :

If disaissiffiis, negofiations, and/or mediation do not adrieve a mutually satisfactory resolution, the Parties agree their s deremedy w i be binding artiitraSon. Such art)itratiQnsh^l be hdd in Cartersville, GA, USA, in accordance w/itti tie nternationalArtjitration rijles . Ail documente and evidence shall be in EngEsh. The award shall be inaland binding upon iie dispulanls, andshall be enforceable in any court having jurisdicfion.

The laws of tie State erf Georgia, US A wittiout regard to confflcts of law prindples shall govem tiis BLOl.

12. DAM AGES:h no event swll Bie Parties be Bable, eadi to tie oflier, for direct or consequenBal damages of any nature induding, vinflioutlimitation, loss of antidpaled profits or any dher spedal or indirect losses or damages.

13. SEVERABILITY;

if any single aspect of fiisenfire agreemenf becomes null, void, or unenforceable, tie remainder of flie entire agreement willremain valid, enforceable, and in full effect

A G R EED TO AND A C C EPTED AS OF THE DATE OF THIS LETTER :

Rufus Paul HarrisCliairman and CEO, Conversion Solutions, Inc.

Sabra Dabbs Ott Gira

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4f

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March 14, 200 6Sabra Dabbs3933 P i n e h u r s t way,Duluth, Ga, 30096

Mr. Harris,

P l e a s e find attached modified agreement. Upon return signature p lea se executecontract fo r VB-1 transaction.P e r our verbal agreemen t a contract w i l l be issu ed for VB-1 transaction as 50/50split of the gross proceeds (after 5 0 % is paid to client) between C V S U andmyself f or transfer of bond to C V S U . S p e c i f i c s to be addressed in contr act are toinclude fee agreement, signatory authority, length of contract, trade involvement,exit strategy for non-performance, and any other contract obligations andagreements that need to be addressed.After completion of contract I w i l l give C V S U full disclos ure to issue procedureproposal and contract f o r transfer of bon d to C V S U . Client has requested$400,000.00 to be trahsfen'ed within 72 hdu(-s after transfer of bond and 5 0 % ofthe proceeds from bond transa ction for the length o f t h e contract. Gui deli nes fo rperformance must be stated in dient contract.

Please contact me with any further questio ns and concerns you may have at678-886-1932.Tha nk you,

S A B R A DABBS

4g Sabra-VB-0000



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AUDI TOE'S REPORTTESTIIIONY PROVIDED BY THOMAS BENSON, Auditor

Tlomas Benson, 30 Years experience as an Auditor with t h e State of Michigan wasc o n t r a c t e d by Conversion Solutions t o perform an independent audit on t h e companya s s e t s .

Q. H a r r i s : Has anyone approached you i n reference to your audit and t he successfulr e p o r t issued t o Conversion Solutions?Thomas Benson: I'm n o t sure i n terms of has anyone approached me.

Q.Harris: E a r l i e r when you f i r s t s t a r t e d o f f you stated that t h i s was t h e one ando n l y P u b l i c Company that you a u d i t e d . S i r ?Thomas Benson: Yes.Q.Harris: Why i s that?Thomas Benson: Because my major employment i s w a s with t h e State of Michigan, andI was a government auditor f o r t h e State of Michigan for 30 years. That's whereI spent t he bulk of my time doing my work.(TT698:7-)Q.Harris: Could we please s t a r t with E x h i b i t 310? Q. by H a r r i s : Do you recognizet h i s document, S i r ?Thomas Benson: Yes.Q.Harris: This i s i s t h i s t h e only document f o r agreement between yourself andConversion S olu tio ns Holding Corporation?Thomas Benson; The only agreement to conduct t h e a u d i t . Yes. (TT677:12-19).Q. H a r r i s : E x h i b i t 105. Please Tab 2, Tab 3. Please zoom i n t o t h e bottom part ofthe page. Ma'am. Q. H a r r i s : I s t h i s t h e t e x t of t h e Report of IndependentR e g i s t e r e d P u b l i c Accoun ting Firm Report tha t you provided to Conversion SolutionsHoldings Corporation?Thomas Benson: Could you repeat that q u e s t i o n . Please.Q. H a r r i s : I s t h i s t h e text of t h e report that you p r o v i d e d w e l l , of theIndependent Registered P u b l i c Accoun ting Firm Report tha t you provided toConversion Sol ut io ns Holdings Co rporation?Thomas Benson: Yes.Q.: H a r r i s : E x h i b i t 311, Pleas ma'am . Q. H a r r i s : Mr. Benson, what i s an

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independent o u t s i d e a u d i t o r t o w h a t does an independent o u t s i d e a u d i t o r mean t oa P u b l i c Company?Thom.as Benson: I t means i t ' s independent from any undue i n f l u e n c e by managementof t h e company.(TT677:21-25 through 678:1-13).Q.Harris: Could you plea se read 1 ( a ) ?Thomas Benson: The f i n a n c i a l statements a r e drawn up i n accordance w i t h t h ea u d i t i n g standards of the p u b l i c a c c o u n t i n g A c c o u n t i n g Over sigh t Board ( U n i t e dS t a t e s ) .Q.Harris: When you prepared t h i s document, do you c o n s i d e r t h a t statement as t r u eThomas Benson: When I prepared t h a t document?Q.Harris: Uh-huh .Thomas Benson: That 's your company's r e p r e s e n t a t i o n of th e Q.Harris: To yo u.

Thomas Benson:. YesQ,Harris: Next Tab, p l e a s e , zoom i n a t the top p l e a s e . Q . Ha rr i s: A l l f i n a n c i a lrecords o f l e g a l o p i n i o n s , i n t e r n a l a u d i t r e p o r t s , a l l documents provided to you- M r . H a r r i s : Please go down t o t h e bottom of the page. Events o c c u r r i n g a f t e rr e p o r t i n g dat a. Next ta b, P l e a s e . Q.Harris: So t h i s document i s where myself andDefendant Ben S t a n l e y provided a l l sup por ting documentation to you t h a t yourequested t o perform your a u d i t and c e r t i f i e d i t t o b e t o t h e b e s t t r u t h f u l t othe b e s t of our a b i l i t i e s Thomas Benson: That's w h a t Q.Harris i n accordance t o a l l these r e g u l a t i o n ? That's what t h i s documentThomas Benson: That's what t h a t r e p r e s e n t s .Q.Harris: Thank you very much. (TT679:l-25 t o TT680:l-2).

A p p e l l a n t Benjamin S t a n l e y never provided any i n f o r m a t i o n t o Thom.as Benson or everask t o provide i n f o r m a t i o n t o Mr. Benson.

Q.Harris: So, these a r e from t h e document request to the o f f i c e r s of the company?Thomas Benson: They were going t o be document requests t o th e company. Y es .Q.Harris: Di d you request these documents from the company?Thomas Benson: I requested some o f them. I don't t h i n k I requested a l l o f them.And i n j u s t l o o k i n g a t t h a t , I can't t e l l you which ones I requested and whichones t h a t I d i d n ' t .



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Q . H a r r i s : Can you perform a s u c c e s s f u l independent o u t s i d e a u d i t w i t h o u t t h edocaments on t h i s l i s t ?Thomas Benson: Oh I'm not s a y i n g I d i d n ' t g e t them d u r i n g you know, w i t h t h i sl i s t I e r e .Q.Harris: Di d you get them. P e r i o d ?Thomas Benson: Oh. I I g o t a l l t h a t I needed.Q . H a r r i s : Yeah Okay. Okay. And e v i d e n t l y you were s a t i s f i e d w i t h what you neededto p r o v i d e a s u c c e s s f u l a u d i t of the Note, t h e UCC and th e company's f i n a n c i a l ?Thomas Benson: I g ot a l o t of documentation and I f e l t , some adequate e x p l a n a t i o nfrom E r . Horton. And a g a in t a k i n g a l l t h a t i n f o r m a t i o n t o g e t h e r , I f e l t c o m f o r t a b l ei n t h e i n f o r m a t i o n t h a t was p r o v i d e d (TT694:8-25 through TT695:125, T T 6 9 6 : l - 6 ) .Q.Harris: Di d you attempt t o c o n t a c t anyone on t h e UCC Note?Thomas Benson: I d i d speak w i t h Mr, Hawkins.Q.Harris: The a c t u a l i n d i v i d u a l t h a t s i g n e d t h e c o n t r a c t w i t h C o n v er s i o n S o l u t i o n sp r o v i d i n g t h e UCC Note, D a v i d Hawkins?Thomas Benson: As f a r as I know, ye s (TT685:13-25 t o TT686:1)Q . H a r r i s : Di d you r e c e i v e w e l l , huh I t a k e i t t h a t you r e c e i v e d e v e r y t h i n gr e q u e s t e d t o s a t i s f y your c u r i o s i t y and th e requirements of th e P u b l i c A c c o u n t i n gO v e r s i g h t Board or you wouldn't have s i g n e d t h e a u d i t e d f i n a n c i a l s f o r th ec o r p o r a t i o n ?Thomas Benson: The b e s t o f my knowledge, Yes.(TT685:1-5).

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Q . H a r r i s : I don't guess you would know I was g o i n g to the top where i t says "seea t t a e l i e d work paper, but I don't see any bond document o r commercial notes a t t a c h e dt o t h i s , so I'm s o r r y i n t h a t .Thom.as Benson: Okay, As yo u went through t h e documents I was l o o k i n g through, thosewere d e f i n i t e l y q u e s t i o n s t h a t I had based on i n f o r m a t i o n t h a t was p r o v i d e d andthose responses were from a n d those q u e s t i o n s I prepared f o r Mr. Horton, and thosea r e h i s responses i n t h e dark b o l d t y p e .Q . H a r r i s : Do you f e e l you r e c e i v e d an answer t o each q u e s t i o n t h a t you asked?Thomas Benson: P r e t t y adequate f o r t he most p a r t , and t h i n g s t h a t were n o t , I wouldfollo-up w i t h o t h e r q u e s t i o n s so I thought Mr. Horton d i d t h e b e s t he c o u l d i nterms o f responding t o me w i t h c o r r e c t i n f o rm a t i o n or the i n f o r m a t i o n t h a t he f e l twas c o r r e c t f o r what I was a s k i n g him.Q . H a r r i s : E a r l i e r L e t ' s t h i n k o f how t o do t h i s . You're here t e s t i f y i n g i n t h ec a p a c i t y of the o u t s i d e independent a u d i t o r of Conversion S o l u t i o n s H o l d i ng sCompany f o r th e s t a t e and c o r r e c t ?Thomas Benson: That's c o r r e c t .Q . H a r r i s : What's your u n d e r s t a n d i n g o r have you come t o a c o n c l u s i o n or has thec o n c l u s i o n been d i s c l o s e d t o you about t he v a l i d i t y o r whether or not the u n i f o r mcommercial code note i s r e a l o r not?Thomas Benson: Based on th e i n f o r m a t i o n t h a t was p r o v i d e d t o me, th e supportdocumentation r e vi e wi n g a l l o f t h a t and my d i s c u s s i o n w i t h Mr. Horton, I I f e l tc o m f o r t a b l e t h a t t h e UCC Note was l e g i t i m a t e . (TT697:l-25 t o 698:1-4).Th e UCC Note was a s s i g n e d t o Waatle H o l d i n g s , A p r i l 15, 2004. Waatle H o l d i n g s wasa p r i v a t e company (TT634:4-14).

The next seven (7) pages a r e a c t u a l pages from t h e T r i a l T r a n s c r i p t . A u d i t o rBenson i s t e s t i f y i n g t o t h e a u t h e n t i c i t y of the R e p u b l i c a de Venezuela Bond a tTT599-600. The bond had a 13.625 i n t e r e s t r a t e . Payments were due t w i c e a y e a r .Th e next page 681 th e government's q u e s t i o n i s answered as t o how ca n any onec o u l d o b t a i n a bond of t h i s type w i t h o u t p ay i n g f o r i t or how they c o u l d o b t a i ni t w i t h o u t p a y i n g f o r i t . Page 5, i t e m 6 showed $400,000 was due and payable" a f t e r " r e c e i p t of the v a l i d a t i o n of th e i n s t r u m e n t by th e banking i n s t i t u t i o n .TT596-598 r e v e a l s t h a t t h e bonds ownership was t r a n s f e r r e d t o Conversion S o l u t i o n sfrom R e p u b l i c o f Venezuela on March 15, 2006.

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RULINCS ^1491019 - STANLEY, BENJAMIN - Uni t : BUF-V-B

FROM: Stanley, ShrinaTO: 61491018SUBJECT: Ttomas starting at 599 stopping at 607DATE: 05/01/^013 02:51:04 PM5991 A. That's correct.2 Q. Okay. Ard the second paragraph, can you just read the second3 paragrapin that I'm outlining with the laser pointer? A. Starting vith "That the Government"? That the Government of5 the Bolivarian Republic of Venezuela (Republica de Venezuela)6 extends and grants full ownership to Conversion Solution, Inc.,125 Tow Park, Suite 300, Kennesaw, Georgia, 30144, ofthe

8 following Global Bonds here below stated.9 Q. And, then, of course below that, is there details provided as10 to the specific bond?11 A. Yes.12 Q. With a code known as a CUSIP; is that right?13 A. That's correct.14 Q. Do you know what that is?15 A. I don't recall. I did look it up during the time I was doing16 the audit, but I can't tell you right now what that stands for.17 Q. And amount of value of half - is that half a billion18 dollars?19 A. Yes.0 Q. With 13.625 percent fixed semiannually; is that right?21 A. That's correct.22 Q. What's /our understanding of 13.625 percent semiannually?3 A. That means that interest on that bond will be paid out twice4 a year.25 Q. So, twice a year 13 percent or half of that? Let me maybeELISE SMITH EVANS, RMR, CRR6001 clarify. 13.625, did you understand, was that the annual2 interest rate?3 A. I don't recall. Q. Okay. Okay.. But some amount would be paid every six months?5 A. Yes.6 Q. Okay, in the bottom ofthe page, is there an individual -7 who's the individual whose name is listed on the right-hand side8 of the page for the Banco Central de Venezuela?9 A. Looks like a Eddy Reyes Torres.10 Q. And what's - what's his position?11 A. A Second Vice President at the Bank Central of Venezuela.12 Q. Okay. And is there a date on this document?13 A.. The date right there says the certificate is issued this day14 March 15th of 2006.15 Q. Okay. And the other individual on the page, I'm not even16 going to try to pronounce the name, but what's the title, the17 person's title?18 A. Treasury Manager.19 Q. Okay. Let me ask you -20 MR. ANAND: Ms. Goldring, can we turn to the next page?21 Q. (BY MR. ANAND): So, that document we just looked at was22 called Certificate of Ownership. This one's entitled23 Declaration. Did you have an understanding ofthe difference24 between these documents?25 A. I don't recall.ELISE SMITH EVANS, RMR, CRR 9



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TRULINCS 61491019 - STANLEY, BENJAMIN - Uni t : BUF-V-B^ 8 15 the same thing?6 MS. GOL DRING: We don't have a 346.7 MR. HARRIS: Electronically you don't have a 346?8 MS. GOLDRING: No, sir.9 MR. HARRIS: Exhibit 302, please, ma'am. Next tab.10 Item 1, Deposit11 Q. (BY MR. HARRIS); Mr. Benson, I believe you stated earlier12 that when being questioned by the Government, that you didn't13 understand why someone ~ was the words you didn't understand why14 someone could obtain a bond ofthis type without paying for it or15 how they could obtain it without paying for it?16 A. I thought that was pretty unusual.17 Q. Could you please read item 1?18 A. Deposit. Conversion Solutions, Inc., agrees to accept, and19 the Agreement Holder agrees to pay or cause to be paid to20 Conversion Solutions, Inc., for value on the effective day -21 date, the net deposit (as specified in the Annex). Al l funds22 received by Conversion Solutions, Inc., under this agreement23 shall become the exclusive property of Conversion Solutions,24 Inc., and remit ~ and remain a part of Conversion Solutions,25 Inc.'s general account without any duty or requirement ofELISE SMITH EVANS, RMR, CRR6821 segregation or separate investment. This agreement shall become2 effective only upon the receipt by Conversion Solutions, inc., or3 its designee of the net deposit.4 Q. As the auditor that audited this document, as the outside5 independent auditor for Conversion Solutions, the publicly traded6 company under CS ~ symbol CSHD, what does that mean to you?7 A. I asked that question several times to - when I reviewed8 this docunnent. I'm sure 1 asked that question to Mr. Horton. I9 was not quite sure what the net deposit meant.10 MR. HARRIS: Can we go down to page 5, item 6, please?11 Q. (BY MR. HARRIS): I believe we ~ you referred to this in12 your notes, was brought up earlier, ofthe $400,000. Could you13 please read the very first line?14 A. Conversion Solution, Inc., shall pay upon receipt and15 validation of the instruments by the banking institution; fees of16 $400,000.17 Q. You stated that the $400,000 wasn't paid and - in your audit18 and whatever itwas. What does that first line mean to you, sir?19 A. it means that what ~ basically what it says, upon the20 receipt of the validation of the instruments by the banking21 institution, the fees should be ~ 400,000 be paid.22 Q. So ~23 A. I think I'd take that document in total in terms of looking24 at that is what the agreement holder ~ one ofthe things the25 agreement holder was going to be doing is executing these ~ELISE SMITH EVANS, RMR, CRR6831 getting these instruments out there, and upon that these fees2 were going to be paid to that agreement holder.3 Q. Does it not mean that once the instrument is receipt ~4 received and validated by the bank, the fees are due?5 A. Yeah, I agree with that. I agree.6 Q. Okay.7 A. Yes.8 Q. In your opinion as the auditor, did that happen?9 A. I'm not sure. , n



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TRULINCS 61491019 - STANLEY, BENJAMIN - Uni t : BUF-V-B

10 Q. Did you ever see any documentation from a banl


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10 Q. Okay, So, the company acquired full ownership of Global11 Bonds throygh the Republ ic of Venezuela on March 15th, 2006. Was12 that your understanding?13 A. Yes.14 Q. And theprincipal amount of those bonds, 500,000,000,15 interest rate of 13.6 percent, and certain codes identifying what16 the bonds were, is that al l your understanding?17 A. That's correct.18 Q. Okay. Wlnat is interest ~ what do you understand that to19 mean?20 A. That's t h 9 rate that's paid out on the bonds. If I was ~21 for instance, if 1 bought some bonds on the open market, there's22 usually a coupon or interest rate on that bond. And that tells23 me the interest that will be paid to me over certain periods of24 time.25 Q. Is that similar to like a CD at a bank?ELISE SMITH EVANS, RMR, CRR5971 A. CD at a bank, that's ~ that's pretty simplified version of2 it.3 Q. Okay. The next paragraph talks about the applicable4 declaration ownership documentation specifies the transfer of5 full ownership to the company. Do you see that?6 A. Yes.7 Q. What are you referring to, what documents are you referring8 to there?9 A.. There was some documents provided to me that ~ between10 Conversion Solutions and Venezuela that purported to transfer the11 ownership of the bonds from them to the company.12 Q. And who gave you those documents?13 A. Mr. Horton.14 Q. Let me ask you to look at what's been marked for15 identification purposes as Government's Exhibit No. 302, which16 should be among the pile of stuff you have. Do you see that?17 A. Yes.18 Q. And let me ask you to look through it. My question will be19 whether you've seen this document before.20 A. (Witness reviewing exhibit.)21 Yes.22 Q. Okay. I mean, is it more than one document or is this a23 collection of documents?24 A. A collection of documents.25 Q. But was this all presented to you by Mr. Horton relating toELISE SMITH EVANS, RMR, CRR5981 these bonds?2 A. Yes.3 MR. ANAND: Your Honor, move to admit Government4 Exhibit No. 302.5 MR. WALDROP: No objection.6 THE COURT: It's admitted.7 Q. (BY MR. ANAND): Now, I want to ~ 1 want to skip to the back8 for a minute. Do you recognize this document?9 A. Yes.10 Q. And what is it?11 A. Let me ~12 Q. 1 mean, to your understanding, what did you understand this13 to be?14 A. It was a certificate of ownership which detailed a - 12



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RULINCS 61491019 - STANLEY, BENJAMIN - Uni t : BUF-V-B

15 transferring the ownership ofthat bond from Venezuela to the16 company Conversion Solutions.17 Q. Okay. And who told you that's what this meant?18 A. Well, based on what I read and discussions with IVIr. Horton.19 Q. And when you say based on what you read, are you saying20 actually just -21 A. Read, yes.22 Q. From the document itself?23 A. Yes.24 Q. Okay. There's nothing else that you read about this document25 other than the document itself?

13



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10 Q. Is this a financial ~ is this a financial for the company?11 A. It's an agreement between the company and the agreement12 holder.13 Q. But it's not a financial document?14 A. It's an agreement.15 Q. It's a giobai ~ a global fund agreement.16 MR. HARRIS: Next tab, please. Yes. Item 1 again.17 Q. (BY MR. HARRIS): So, in this document, looking at item 1 of18 the deposit, and not ~ we've established it's not a financial,19 how did you derive as an independent outside auditor that this20 $500,000,000 was an asset of Conversion Solutions Holdings Corp?21 A. Because that was the information that I was provided by your22 company, one. And documentation supported the fact that there's23 a transfer of bonds from Venezuela to your company. You have an24 agreement like this that has some financial implications in it in25 terms of executing that bond and doing some things in the privateELISE SMITH EVANS, RMR, CR R7031 market. So, there was documentation that supported the fact2 that, you know, you ~3 Q.. The agreement; is that what you're saying? The agreement is4 the documentation that supported it?5 MR. ANAND: Objection, Your Honor. We're starting to6 ask and answer here. We're also starting to talk over each7 other. He was in the middle of answering a question and Mr.8 Harris interposed something else.9 MR. HARRIS: All right. Withdrawn.10 MR. ANAND: And I think we've plowed through this11 ground already.12 THE COURT: I think you've already covered this13 territory, sir.14 MR. HARRIS: Sir?15 THE COURT: I think you've already covered most ofthis16 territory.17 MR. HARRIS: Okay. I'd like to flip through this18 agreement, please. Next page.19 MS. GOLDRING;The exhibit number, please?0 MR. HARRIS: 302.21 MS. GOLDRING: What page would you like?

MR. HARRIS; Can you bring it up and we go to the next3 tab? Tab 3. Let's start with tab 3. Next tab. Next one,24 please. I'm sorry. There we go. Next page..25 Q. (BY MR. HARRIS); Off of a instrument of this type, you bookELISE SMITH EVANS, RMR, CR R7041 the interest into the financials ofthe company as a receivable;2 correct, the coupon as we established?A. Your - your CFO booked that as a receivable, and 1 confirmedthat.5 Q, So, you didn't complete an independent outside audit?A. Yes.7 MR. ANAND: Objection, Your Honor. Asked and answered.

8 He's explained the concept ~9 THE COURT: I'm going to sustain that. Move on.10 MR.. HARRIS: All right. No further questions.11 THE COURT; Ms. King?12 MS. KING: Thank you. Your Honor13 CROSS EXAMINATION14 BY MS. KING:

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15 Q. Good afternoon, Mr. Benson.16 A. Good afternoon.17 Q. I just have a couple of questions for you about, I guess, the18 business expense portion of your testimony on Direct. I think19 we've already established or you've testified that you've been20 doing this for a very long time, at least auditing private21 companies; is that correct, and government entities?22 A. I've a udited some private companies and government entities.23 Not ~ I di d more government work ~24 Q.. Okay.25 A. - versus private entities connected with government.

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Conclusion

r4r. Thomas Benson, a n A u d i t o r f o r t h e S t a t e o f Michigan p r o v i d e d a r e p o r t o findependent R e g i s t e r e d P u b l i c Accounting F i r m Report based upon h i s 3 0 yearso f e x p e r i e n c e . A s h i s testimony c o n f i r m s , h e worked w i t h Rufus P a u l H a r r i s a ndD a r r y l Horton, n o t A p p e l l a n t . I t w as confirmed b y h im t h a t t h e a s s e t s , VenezuelanBond ; F i n n i s h Bond and the UCC Note were v a l i d instruments and t ha t at a s p e c i f i e dt r a n s a c t i o n , a f t e r c l e a r i n g through a f i n a n c i a l i n s t i t u t i o n , t h e $400,000 wouldhave been p a i d . B u t f o r i n t e r v e n t i o n b y t h e SEC, Conversion S o l u t i o n s was unablet o f u l f i l l t h e terms o f t h e c o n t r a c t which wa s n u l l i f i e d by t h e a c t i o n s o f t h egovernment a n d o t h e r s .

Under oath o f t h e c o u r t , M r . Thomas Benson t e s t i f i e d a t TT702 through TT704t h a t t h e f i n a n c i a l i s a n Agreement between t h e company and the Agreement Holdera n d t h a t t he $500,000,000 was an as s et of Conversion because t h a t w as t h e i n f o r mation provided by Conversion S o l u t i o n and second t h a t t h e documentation supportedt h e f a c t t h a t t h e r e ' s a t r a n s f e r o f bonds from Venezuela t o your company. "Youhave an Agreement t h a t h a s some f i n a n c i a l i m p l i c a t i o n s i n i t i n terms o f e x e c u t i n gt h a t bond an d doing some t h i n g s i n t h e p r i v a t e market. So, th er e was documentationt h a t supported t h e f a c t t h a t , y ou know, y o u "

The e n t i r e testimony of Mr. Thomas Benson shows a working r e l a t i o n s h i p w i t hD a r r y l Horton, and Rufus P a u l H a r r i s . B en S t a n l e y was Re s i n t e r a l i o s a c t a t o t h ep a r t i e s a nd h e w as n o t i n v o l v e d i n t h e company f i n a n c i a l s and Agreements.

F u r t h e r , a n y t h i n g whatsoever stated.about t h e company f i n a n c i a l r e p o r t s b yA p p e l l a n t w i l l be Overbreadth and p r o t e c t i o n under t h e F i r s t Amendment.

15a



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"The same p o i n t can be made about what t h e c o u r t has c o n f ir m e d i s the

'anquestionable c o n s t i t u t i o n a l i t y of p e r j u r y s t a t u t e s " both t he f e d e r a l s t a t u t e ,

18 L'SC 1623, and i t s s t a t e - l a w e q u i v a l e n t . U,S, v. Grayson, 438U,S, 41, 54. 98

S. C t. 2610, 57L, Ed.2d 582 ( 1 9 7 8 ) . See a l s o Konigsberg v. S t a t e Bar of C a l . ,

366 U.S. 35, 51, n. 10, 81 S. Ct. 997, 6L Ed. 2d 105 ( 1 9 61 ) . I t i s not s i m p l y

because p e r j u r e d statements a r e f a l s e t h a t t h ey l a c k F i r s t Amendment p r o t e c t i o n .

P e r j u r e d t e s t i m o n y " i s at war w i t h j u s t i c e . " because i t can cause a c o u r t tor e n d e r a "judgment not r e s t i n g on t r u t h . " In re M i c h a e l , 326 U.S, 224, 227, 66.

The f o l l o w i n g i n d i v i d u a l s a r e c o n s i de r e d Res i n t e r a l i o s a c t a t o P e t i t i o n e r

Benjamin S t a n l e y due to t h e n a t u r e of t h e i r n o n - c o n t r a c t i n g work r e l a t i o n s h i p .

Res i n t e r a l i o s a c t s i s d e f i n e d as a t h i n g done among s t r a n g e r s . D e s c r i b e s the

p r i n c i p l e t h a t a p a r t y to a law s u i t s h o u l d not be a f f e c t e d by t h e words or deeds

o f persons w i t h whom t h e p a r t y has no c o n n e c t i o n and f o r whom t h e p a r t y has no

l e g a l r e s p o n s i b i l i t y , Oran's D i c t i o n a r y of t h e Law, 2d. ed.:

T r a n s f e r Agent Don MaddalonE r x c Deneault, B r o k e r

Dave P e r l e yRandy MoseleyM i c h a e l Alexander

Sabra DabbsIsmet Paez

16



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Eomeo V a n d e t t a , The Caracas GroupM i t c h S e p a n t i a c kD a r r y l ShoreDuwayne WoodsToy MorganG e r a l d ShoreA nn N e l k i nO t t G i r aD a v i d HawkinsSteven KennedyC r a i g Casson

A l l bankers a s s o c i a t e d w i t h the p r o j e c t s , Bonds, and UCC Note.

A c r i m i n a l i n d i c t m e n t numbered above a l l e g e s a c o n s p i r a c y f o r count one

a g a i n s t defendants Rufus P a u l H a r r i s ( K a r r i s ) , Benjamin S t a n l e y ( A p p e l l a n t ) and

D a r r y l Horton; Count two a l l e g e s a scheme to commit S e c u r i t i e s Fraud, and Count

t h r e e a l l e g e s f a l s e c e r t i f i c a t i o n of f i n a n c i a l statement ( a g a i n s t Defendant

H a r r i s ) , The c r i i n i n a l i n d i c t m e n t l a b e l e d a t r u e b i l l was a u t h e n t i c a t e d by B i l l y

A, ilorne., Foreperson and A u t h o r i z e d by S a l l y Q u i l l i a n Y a t e s , A c t i n g U.S. A t t o r n e y

a n d two A s s i s t a n t U.S. A t t o r n e y s J u s t i n S. Anand, Bar 016116 and J a m i l a M. H a l l ,

B a r 319053, 500 U.S, Courthouse, 75 S p r i n g S t r e e t , S.W. A t l a n t a , GA 30303

Telephone (404) 581-6332, 6031, Fax 6131.

A p p e l l a n t f i r s t addresses c e r t a i n e r r o r s when c o r r e c t e d w i l l d i s c l o s e the

B i l l of I n d i c t m e n t i s f r a u d u l e n t and A p p e l l a n t never p a r t i c i p a t e d i n a c o n s p i r a c y

o r a c r i m e . F i r s t A p p e l l a n t i s not a co-founder of C o n v e r si o n S o l u t i o n H o l d i n g17



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C o r p o r a t i o n . Second Waatle H o l d i n g C o r p o r a t i o n was n o t c o n t r o l l e d by A p p e l l a n t .

A p p e l l a n t was h i r e d under c o n t r a c t a s t h e C h i e f O p e r a t i o n s O f f i c e r (COO) f o r a

s p e c i a l p r o j e c t . T h i s p o s i t i o n h ad n o t h i n g t o do w i t h c o n t r o l l i n g V / a a t l e H o l d i n g

o r C o n v er s i o n S o l u t i o n s . T h i r d ; A p p e l l a n t d i d n o t d i r e c t l y o r i n d i r e c t l y s o l i c i t

numerous i n d i v i d u a l s t o i n v e s t o r l e n d money to the company i n exchange f o r

s e c u r i t i e s s t a t e d a s " c o n v e r t i b l e n o t e s , " because i t w as n o t w i t h i n , , n o r w as i t

a p a r t o f h i s c o n t r a c t t o perform such a c t s . F o u r t h . A p p e l l a n t S t a n l e y , b e i n g

a Board Member wa s knowledgeable o f f i n a n c i a l t r a n s a c t i o n s b u t h e w as R es i n t e r

a l i o s a c t a t o p a r t i e s o f t h e c o n t r a c t s a nd s t a t e d " t ho s e i n s t r u m e n t s b e t t e r be

r e a l o r someone's g o i n g t o be i n t r o u b l e " showing he f u l l y l a c k e d knowledge t o

determine t h e a u t h e n t i c i t y o f a ny o f th e f i n a n c i a l i n s t i u m e n t s a s i t was n o t h i s

duty t o make such d e t e r m i n a t i o n s when c o r p o r a t e a t t o r n e y Maurice Bennett; C h i e f

F i n a n c i a l O f f i c e r D a r r y l Horton, CPA , t h e C o n t r a c t i n g p a r t i e s a nd owners had

d i r e c t r e s p o n s i b i l i t y f o r such matters a nd d e t e r m i n a t i o n s i n accordance w i t h

A r t i c l e 1, S e c t i o n 10, paragraph 1 t o f u l f i l l i n d i v i d u a l r i g h t s t o c o n t r a c t .

F i f t h , A p p e l l a n t never p a r t i c i p a t e d i n t h e c r e a t i o n o f 10-K o r o t h e r i n f o r m a t i o n

about C3HC o t h e r than t h e B u s i n e s s Model w i t h Transparency System which had

n o t h i n g t o do w i t h SEG forms and documents a nd t h e r e f o r e h e never r e l e a s e d

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f i n a n c i a l infurraaLi.on Lo an account r e g a r d i n g a 10-K document p r e p a r a t i o n . S i x t h

based upon th e Agreem ents between t he c o n t r a c t i n g p a r t i e s (See the f o l l o w i n g

pa ge s) th e bonds and UCC No te were V v a a t l e c o n t r a c t e d t o CSKC. The c o n t r a c t s

s t i p u l a t e d the r e l a t i o n s h i p between the c o n t r a c t i n g p a r t i e s as s t i p u l a t e d by-

A r t i c l e 1, S e c t i o n 10, paragraph 1 and the Laws of O b l i g a t i o n s and C o n t r a c t s .

One s c h o o l e d i n law s h o u l d minimumly know t h a t one does no t have t o own t ob e n e f i t where the Laws o f O b l i g a t i o n s and c o n t r a c t s a r e concerned. B e s i d e s t h a t ,

none of th e i n d i s p e n s a b l e p a r t i e s to the c o n t r a c t s and UCC Not e were a v a i l a b l e

f o r c r o s s - e x a m i n a t i o n . . Seventh, altho'ugh A p p e l l a n t was p a i d a s a l a r y , the

company r e c e i v e d venture c a p i t a l which i n c l u d e s a p p r o p r i a t e s a l a r i e s . A s t a r t - u p

company r a r e l y has income to pay s a l a r i e s and b i l l s . That i s the l o g i c and

importance behind Venture C a p i t a l and Seed Money: a g a i n , r e l y i n g upon the Laws

o f O b l i g a t i o n s and C o n t r a c t s and A r t i c l e 1, S e c t i o n 10, paragraph 1 to the

C o n s t i t u t i o n of the U n i t e d S t a t e s .

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T he U.S. A s s i s t a n t A t t o r n e y s falseiy s t a t e d t h a t " d u r i n g October 2006, when

he lenew t h e s t o c k p r i c e o f CSHC wa s a r t i f i c a l l y . i n f l a t e d a s a r e s u l t o f t he f a l s e

pu-blic statements, Defendant Benjamin S t a n l e y t r a n s f e r r e d and caused CSHC t o

t r a a s f e r s u b s t a n t i a l q u a n t i t i e s o f s t o c k t o c l o s e f a m i l y members who s o l d i n the

open market a t a r t i f i c a l l y i n f l a t e d p r i c e s of between $2-$3 p e r s h a r e . Defendant

Benjamin S t a n l e y subsequently r e c e i v e d a s u b s t a n t i a l p o r t i o n of t h e p r o f i t s of

t h i s t r a d i n g , "

Waatle H o l d i n g Company r e c o r d s c l e a r l y d i s c l o s e d shares were i s s u e d t o

A p p e l l a n t a s p a r t of h i s i n i t i a l h i r i n g c o n t r a c t , Waatle H o l d i n g, a p r i v a t e l y

h e l d company i s s u e d shares a s d e s i g n a t e d t o A p p e l l a n t c l o s e f a m i l y members

s h o r t l y a f t e r they were i s s u e d t o h i m . S i n c e they p r o p e r l y owned t h e s h a r e s ,

they were f r e e t o c o n t r a c t whenever they d e s i r e d based on the Laws o f ' O b l i g a t i o s

a n d C o n t r a c t s a n d A r t i c l e 1, S e c t i o n 1 0, paragraph 1 aforementioned. A p p e l l a n t

r e c e i v e d a l o a n t o purchase a n a s s e t f o r b u s i n e s s usage i n promoting t h e

P e r f o r m i n g A r t s C o n t r a c t s , which i n t u r n

u p l i f t e d and supported t h e company image. A p p e l l a n t made a l l b ut $60,000 of the

l o a n repayments. The government w r o n g f u l l y c o n f i s c a t e d t h i s p r o p e r t y .

F u r t he r , i t must be d i s c l o s e d a s evidence has c l e a r l y shown, A p p e l l a n t ' sf a m i l y members worked through t h e i r l i c e n s e d b r o k e rs a nd f o l l o w e d t h e i r b r o k e r s '

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a d v i c e . E r i c Deneault, a P o i n t C a p i t a l B r o ke r t e s t i f i e d i n c o u r t he c o n t a c t e d

A p p e l l a n t ' s former w i f e to a d v i s e her when to s e l l her s h a r e s . T h e r e f o r e U.S.

A t t o r n e y s committed p e r j u r y m u l t i p l e t i m es throughout the p r e p a r a t i o n of t h e s e

charges i n an e f f o r t to i m p l i c a t e A p p e l l a n t i n a c o n s p i r ac y : a i d i n g and a b e t t i n g

a c o n s p i r a c y scheme and a pump and dump scheme when they knew the a l l e g a t i o n s to

be f a l s e .

P r o s e c u t o r s , J u r y Foreman and the U,S. A t t o r n e y v i o l a t e d the law when t h e y

f a i l e d to examine A p p e l l a t e d u r i n g the Grand J u r y h e a r i n g so he c o u l d p r e s e n t

matters i n m i t i g a t i o n . T h i s f a i l u r e r e s u l t e d i n v i o l a t i o n of C i v i l R i g h t s under

Amendments V, VI and X I V ; r i g h t to due p r o c e s s , r i g h t to be r e p r e s e n t e d by a

competent a t t o r n e y , and e q ua l p r o t e c t i o n of the l a w . Here, the p r o s e c u t o r s and

grand j u r y foremen v i o l a t e d A r t i c l e 6, paragraph 3 which i s t h e i r Oath of

A f f i r m a t i o n or Oath to uphold the C o n s t i t u t i o n of the U n i t e d S t a t e s . By

v i o l a t i n g A p p e l l a n t ' s C o n s t i t u t i o n a l R i g h t s , t h ey v i o l a t e d 18 USC 1001. And by

randomly w r i t i n g A p p e l l an t ' s name on D e p o s i t documents w i t h o u t h i s p e r m i s s i o n and

knowledge to c r e a t e an i l l u s i o n t h a t he was i n v o l v e d i n monetary t r a n s a c t i o s of

t h e company, the p r o s e c u t i n g a t t o r n e y s a l o n g w i t h M i c h a e l A l e x a n d e r , Sabra Dabbs, t f "

Ann N e l k i n , Don Maddalon and o t h e r s unknown to A p p e l l a n t e n t e r ed i n t o a21



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c o n s p i r a c y t o o r c h e s t r a t e h i s i n v o lv e m e nt f i r s t i n a s h a r e i s s u i n g scheme o f

Waatle H o l d i n g s Company, a p r i v a t e company l e g a l l y a u t h o r i z e d t o i s s u e i t s s h ar es

t o I ts o f f i c e r s w i t h o u t t h e i n t e r f e r a n c e o f t h e SEC , knowing A p p e l l a n t w as n o t

i n ^ v o l v e d i n i s s u a n c e o f Waatle H o l d i n g s C o r p o r a t i o n s h a r e s .

T he c o n s p i r a c y a g a i n s t A p p e l l a n t wa s m a n i f e s t e d when A p p e l l a n t was w r o n g f u l l y

accused o f communicating company p r i v i l e d g e d stock/share i n f o r m a t i o n t o f a m i l y

memters e n c o u r a g i n g them t o s e l l s h a r e s when B r o k e r E r i c Deneault o f P o i n t

C a p i t a l t e s t i f i e d under Oath a nd p e n a l t y of p e r j u r y t h a t "he p e r s o n a l l y a d v i s e d

P e t i t i o n e r S t a n l e y ' s e x - w i f e t o s e l l h e r s h a r e s , "

Here, t h e f a c t s e x h i b i t t h r e e d i f f e r e n t o c c a s i o n s of v i o l a t i o n o f Oath o r

A f f i r m a t i o n t o u p ho l d A p p e l l a n t ' s c o n s t i t u t i o n a l R i g h t s under Amendments V., V I ,

and XIV but because o f c o l o r o f l a w , A p p e l l a n t w as a c c u s e d , t r i e d , c o n v i c t e d and

i m p r i s o n e d f o r a c o n s p i r a c y which he was not a pa rt y t o , had no agreement,

d e r i v e d no b e n e f i t from and was unaware o f i t s e x i s t a n c e . I n s t e a d , i t i s t he

government o f f i c i a l s , A t t o r n e y A l a n a B l a c k an d Agent B r i a n Harvey who committed

a c o n s p i r a c y a g a i n s t A p p e l l a n t by v i o l a t i n g h i s r i g h t s , making f a l s e

a c c u s a t i o n s , a nd t h e n t r y i n g a nd c o n v i c t i n g h i m t o 16 y e a r s imprisonment.

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NEXUS- AND MENS REA

T h e r e i s n o N E XU S , o t h e r t h a n t h e s p o r a i c u s a g e o f t h e w o r d" t h e y " t o c o n n e c t P e t i t i o n e r t o t h e c r i m e s . T h e g o v e r n m e n t f a i l e dt o e s t a b l i s h t h e NEITIS, m e ns r e a a n d r e l a t i o n b e t w e e n P e t i t i o n e ra i d t h e i n d i v i d u a l s who a c t u a l l y c o n s p i r e d a n d c o m m i t t e d t h e c r i m e s .F o r g o o d c a u s e s . P e t i t i o n e r S t a n l e y i s r e q u i r e d t o s h o w i s s u e s w h i c hw o u l d r e q u i r e s u b s t a n t i a l a n d m a t e r i a l c o n s i d e r a t i o n o r r e v e a l am a n i f e s t i n j u s t i c e t o b o t h t h e d e f e n d a n t a n d t h e c o u r t . T h e r e i s n om en s r e a a n d t h e r e i s n o NEXUS t o c h a r g e P e t i t i o n e r w i t h the c r i m e s .The s t r o n g e s t i n t e r e s t o f j u s t i c e w i l l be d e e p l y m i n i m i z e d , w r o n gd e f e n d e n t s w i l l be i m p r i s o n e d , a n d j u s t i c e w i l l n o t b e s e r v e d f o rt h e P e o p l e r e s u l t i n g i n s h a m e a n d d e m i n l s h m e n t o f t h e c r i m i n a lJ u s t i c e S y s t e m . E s p e c i a l l y s o wh en a Key g o v e r n m e n t w i t n e s s ( D o nM a d d a l o n ) c o n f e s s e d t o s om e o f t h e c r i m e s b y a d m i t t i n g c r e a t i o no f a f a l s e s h a r e h o l d e r l i s t w h i c h b e c am e t h e d r i v i n g c a t a i i s t f o rt h e S E C t o p e r s u e f r a u d c h a r g e s a g a i n s t P e t i t i o n e r . a n d o t h e r s .A n o t h e r k e y w i t n e s s , A n n N e l k i n , a c t u a l l y c o n f e s s e d t o i n s i d e rt r a d i n g p r e - m e r g e r s h o w i n g u n e q u i v o c a b l y s h e c o m m i t t e d t h e c r i m e .T h e s e k n o w i n g a n d s h o w i n g o f e v i d e n c e r e l i e d u p o n f o r c o n v i c t i o n

w e r e c r e a t e d f ro m k e y w i t n e s s e s a f t e r q u e s t i o n i n g .P e t i t i o n e r h a d i n e f f e c t i v e a s s i s t a n c e o f c o u n s e l b e c a u s e s h e

w a s s o o b l i v i o u s a n d u n k n o w l e d g e a b l e o f c o n t r a c t a n d S e c u r i t y l aw sand t h e s u b j e c t m a t t e r o f t h e c r i m e , s h e c o u l d n o t a s k a p p r o p r i a t eq u e s t i o n s , s h e d i d n ' t k no w t h e n a t u r e o f t h e e v i d e n c e a n d d i d n o t

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t a k e t i m e t o a t l e a s t s t u d y i t , a nd a m a j o r i t y o f t h e t i m e , s h ed i d n ' t c o m p r e h e n d t h e c o n v e r s a t i o n s d u e t o i n c o m p e t e n c e .

Two w i t n e s s e s , o n e k e y w i t n e s s , A nn N e l k i n , a n d a n u n c h a r g e dw i t n e s s , S a b r a D a b b s w i t h p o s i t i v e mens r e a e n t e r e d i n t o an dc a r r i e d o u t a c o n s p i r a c y t o " r e c o u p m o n i e s l o s t i n a d i v o r c e " .througha a I n s i d e r T r a d i n g s t o c k s c h e m e . T h e r e i s a o w a y P e t i t i o n e r c o u l dh a v e k n o w n a b o u t t h e s c h e m e b e i n g R es I n t e r A l i o s A c t a .

A n o t h e r c o n s p i r a c y t o d e f r a u d C o n v e r s i o n S o l u t i o n p r e - m e r g e ro c c u r r e d w h e n M i k e A l e x a n d e r w i t h mens r e a c o n c e a l e d t h e q u a n t i t yo f o u t s t a n d i n g s h a r e s o w n e d b y F r o n t h a u l a n d i n v e s t o r s , a n d i n t r o d u c e d D a v e P e r l e y a s a C o n s u l t a n t w h e n he^ M i k e A l e x a n d e r ^ knew D a v eF e r l e j t o b e a n o f f i c e r o f F r o n t h a u l .

M i k e A l e x a n d e r a n d B a v e P e r l e y w i t h mens r e a c o n t i n u e d t h e i rf r a u d u l e n t c o n c e a l m e n t w h e n t h e y i n t r o d u c e d D a v e P e r l e y a s a C o n s u l t a n t o f M i k e A l e x a n d e r t o t h e S e c u r i t y E x c h a n g e C o m m i s s i o nk n o w i n g i n f a c t t h a t D a v e P e r l e y i s a n o f f i c e r o f F r o n t h a u l a ndt h a t h e , D a v e P e r l e y , d i d e x e c u t e c e r t a i n S EC d o c u m e n t s a s a t t e s t e dt o b y D o n M a d d a l o n .

F u r t h e r t h a t M i k e A l e x a n d e r w i t h mens r e a d i d , i n o r d e r t oc o m p l e t e t h e c o n s p i r a c y , c o n v e r t h i s c o n c e a l e d s h a r e s w i t h t h ea s s i s t a n c e o f D o n M a d d a l o n who had mens r e a , r e l e a s e d t h e r e s t r i c t e ds h a r e s t o t h e m a r k e t p l a c e .

The F.R.Civ.P. Rule 60(b.) Motion i s t o show t h e c r i t i c a l i s s u e s t h a t wereo v e r l o o k e d b y c o u n s e l . Counsel's A p p e l l a t e B r i e f a l s o c o n t a i n s e r r o r s and we.arei n disagreement about t h e c r i t i c a l i s s u e s because A p p e l l a n t . b e l i e v e s t h a t oncea.reasonable j u r i s t reviews t h e admissions o f g u i l t by oth er s who t e s t i f i e d , hew i l l be found i n n o c e n t .

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A p p e l l a n t a t t o r n e y ' s a c t i o n s may and c o u l d cause o t h e r s t o knowingly circumventt h e ends o f j u s t i c e . S i n c e t h e A p p e l l a t e B r i e f c o n t a i n s f a l s e i n f o r m a t i o n , i tc a n be c o r r e c t e d w i t h d a t a from A p p e l l a t e ' s Pr o Se Motion t o Vacate, S e t - A s i d e ,C o r r e c t and Remand under F e d e r a l R u le s o f C i v i l Procedure 6 0 ( b ) , t o p r e v e n tv i o l a t i o n s o f A p p e l l a n t' s C o n s t i t u t i o n a l R i g ht s under Amendments I , V, V I , IX ,X, and XI V.

A p p e l l a n t has r e v i e w e d t h e A p p e l l a t e B r i e f f i l e d by c o u n s e l . A p p e l l a n t i si n disagreement because c o u n s e l d i d n o t c o v e r c r i t i c a l i s s u e s . By s u b m i t t i n gt h i s Motion t o Vacate, S e t - A s i d e , C o r r e c t or Remand a j u r y ' s g u i l t y v e r d i c t ,c o u n s e l w i l l be a b l e to see th e p a r t i e s who p l e d g u i l t y or c o n f e s s e d g u i l t d u r i n gt r i a l , through t h e i r t e s t i m o n y . A p p e l l a n t i s r e s i n t e r a l i o s a c t a . He hada b s o l u t e l y n o t h i n g to do w i t h t h e o t h er p a r t i e s t o t h e c o n t r a c t and he hada b s o l u t e l y n o t h i n g to do w i t h t h e f i n a n c i a l s t a t e m e n t s . H i r e d c o n t r a c t e dp r o f e s s i o n a l s worked w i t h t ho s e bonds and th e i n d i v i d u a l s on th e c o n t r a c t s .A p p e l l a n t S t a n l e y was no t a p a r t y t h e r e t o .

A p p e l l a n t submits t h i s i n f o r m a t i o n r e g a r d i n g the numerous c o n t r a c t s endorsedby v a r i o u s o f f i c i a l s of Waatle I n c . and C o n ve r s io n S o l u t i o n s , I n c . e n t e r i n g i n t oc o n t r a c t u r a l agreements f o r ownership of the F i n n i s h and Venezuelan Bonds and theUCC Note. The o n l y c o n t r a c t A p p e l l a n t endorsed i s h i s employment c o n t r a c t asC.O.O. The b a s i c i s s u e here i s t h a t t h e p a r t i e s to the c o n t r a c t s a r e a u t h o r i z e dr e p r e s e n t a t i v e s of the c o n t r a c t u r a l agreement f o r t h e Bonds and Note because theyshare an i n t e r e s t i n t h e f u l f i l l m e n t of the c o n t r a c t u r a l o b l i g a t i o n s . By t h e i rendorsement t h e r e o n , t h e y e x c l ud e d i n d i v i d u a l s t h a t ar e not a p a r t y to the Bondsand Note. Amendment I X of th e C o n s t i t u t i o n of the U n i t e d S t a t e s g i v e s people ther i g h t t o e n t e r i n t o c o n t r a c t s . A r t i c l e 1, S e c t i o n 10, paragraph 1 i s t h ea u t h o r i t y which p r e v e n t s th e U n i t e d S t a t e s Government from i n t e r v e n i n g i n o rd i s p a r a g i n g t h e r i g h t s of c o n t r a c t s . The S e c u r i t y and Exchange Commission i n

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c o n j u n c t i o n w i t h t h e c o u r t h e l d a h e a r i n g w i t h o u t t h e i n d i s p e n s a b l e p a r t i e s t ot h e Bonds. I n s t e a d , t h e c o u r t p r e s e nt e d t h i r d p a r t y w i t n e s s e s t h a t were n o tr e p r e s e n t a t i v e s o f t h e Bonds t o t e s t i f y as to the a u t h e n t i c i t y of the Bonds. TheSEC and th e O f f i c e o f t h e A t t o r n e y G e n e r a l used F e d e r a l i s m t o h a l t l e g a l andi l l e g a l share t r a d i n g . A s s ' t U.S. A t t o r n e y Anand f i l e d charges a g a i n s t A p p e l l a n tf o r which a t r i a l wa s conducted and the j u r y found A p p e l l a n t g u i l t y of CountsO ne , t h r e e , f o u r a nd f i v e , and Count 7 e x p l a i n e d a s :

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C o i i a t One i s c o n s p i r a c y t o execute a scheme t o de fr au d, 18 USC 1348, 1343, &1S49 25 years f i n e : $84,420,712.32 ( t w i c e t h e l o s s ) A p p e l l a n t wasac-cased and c o n v i c t e d t h a t h e c o n s p i r e d b y a i d i n g a nd a b e t t i n g H a r r i s a nd D a r r y lHorton t o execute a scheme t o d e f r au d w i t h r e g a r d t o t h e p u b l i c l y - t r a d e ds e c u r i t i e s o f Conversion S o l u t i o n s H o l d i n g C o r p o r a t i o n (CSHC) from e a r l y 2005 t oNovember 9, 2009.

Count t wo i s a scheme t o commit s e c u r i t i e s f r a u d , 18 USC 1348 and 2, 25years f i n e : $84,420,712.32 ( t w i c e t h e amount)Appellant accused a nd c o n v i c t e d o f e x e c u t i n g a scheme and a r t i f i c e t o d e f r a u do t h e r persons, i n c o n n e c t i o n w i t h s t o c k s e c u r i t i e s o f CSHC, a nd t o o b t a i n , bymeans o f f a l s e a nd f r a u d u l e n t p r e t e n s e s , r e p r e s e n t a t i o n s , a nd promises, any moneya n d p r o p e r t y i n c o n n e c t i o n w i t h t h e purchase a nd s a l e o f s t o c k s e c u r i t i e s a tCSHC, a n i s s u e r w i t h a c l a s s o f s e c u r i t i e s r e g i s t e r e d tmder Se c ti o n 12 of the SECAc t of 1934 (I B USC 781) and tha t was re qu ir ed to f i l e r e p o r t s under S e c t i o n15(d) of the Exchange A c t from a t l e a s t September and October 2006.

Counts 3 through 5, and count 7, scheme t o commit w i r e f r a u d , 18 USC 1343and 2 20 years imprisonment $250,000 f i n e .A p p e l l a n t S t a n l e y w as charged a nd c o n v i c t e d o f counts 3 - 5 a nd 7 t h a t o n s p e c i f i cdates i n September 2006 i n c o n j u n c t i o n w i t h H a r r i s a nd D a r r y l Horton, f o r t h epurpose o f e x e c u t i n g t h e scheme and a r t i f i c e t o d e f r a u d , a n d a t t e m p t i n g t o d o s o ,and f o r o b t a i n i n g money a n d p r o p e r t y b y means o f m a t e r i a l l y f a l s e a nd f r a u d u l e n tp r e t e n s e s , r e p r e s e n t a t i o n s , an d promises, caused t o b e t r a n s m i t t e d by means o f w i r ea nd r a d i o comnnmications i n i n t e r s t a t e coiranerce, c e r t a i n s i g n s , s i g n a l s and sound,t h a t i s , named e l e c t r o n i c communication.

P e t i t i o n e r p l e d n o t g u i l t y t o a l l counts because i n h i s p o s i t i o n a s C h i e fOperations O f f i c e r , h e was i n c a p a c i t a t e d t o perform t h e d u t i e s o f h i g h l y q u a l i f i e do f f i c e r s ; t h e C h i e f E x e c u t i v e O f f i c e r , t h e E x e c u t i v e V i c e P r e s i d e n t , t h e T r e a s u r e r ,t h e C o r p o r a t i o n S e c r e t a r y , a nd t h e C o r p o r a t i o n A t t o r n e y ; where h i s d u t i e s weret o d e s i g n a Model Program w i t h Transparency. J u s t l i k e P e t i t i o n e r , t h e o t h e ro f f i c e r s o f t h e C o r p o r a t i o n h a d s p e c i f i e d d u t i e s they must perform t o comply w i t ht h e i r Employment C o n t r a c t s . I n work s i t u a t i o n s o f t h i s n a t u r e a nd t o advancet h e success o f t h e c o r p o r a t e e n t i t y , a l l o f f i c e r s a r e mandated t o possess c e r t a i nknowledge, s k i l l s and a b i l i t i e s t o o p t i m i z e performance. T h e v e r y n a t u r e o fConversion S o l u t i o n f a l l s under t h e scope o f O b l i g a t i o n o f C o n t r a c t s , meaning

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e v e r y t h i n g was done under the a u s p i c e s of c o n t r a c t s. P e t i t i o n e r was r e s p o n s i b l ef o r the f u l f i l l m e n t of h i s c o n t r a c t u r a l o b l i g a t i o n s t o f u r t h e r the advancemento f the c o r p o r a t i o n . Because of A p p e l la n t ' s p o s i t i o n , he was a l s o a board member.As a board member, he has c e r t a i n a d d i t i o n a l d u t i e s and r e s p o n s i b i l i t i e s t o theboard. T h e r e i n , A p p e l l a n t i s p r o t e c t e d by constitution Amendment I i n t h a t nolaiif s h a l l be passed a b r i d g i n g the freedom of speech, or of th e p r e s s , or th e r i g h to f the people t o peaceably assemble, and t o p e t i t i o n the government f o r a r e d r e s so f g r i e v a n c e s . I n a c o r p o r a t e s e t t i n g , any s p e a k i n g , speeches or a c t i o n s basedupon c o n t r a c t s are p r o t e c t e d by what the law i d e n t i f i e s as "OVERBREADTH."

Next the l i b e r t y or a b i l i t y to e n t e r i n t o agreements w i t h o t h e r s i s thefreedom of c o n t r a c t . I t i s a " b a s i c and fundamental r i g h t r e s e r v e d to the peopleby the F i f t h and F o u r t e e n t h Amendments t o the C o n s t i t u t i o n which p r o h i b i t s "thed e p r i v a t i o n of l i b e r t y w i t h o u t due process of l a w . " 32 F. Supp. 964, 987. " F r e e dom of c o n t r a c t i s s u b j e c t to l e g i s l a t i v e r e g u l a t i o n s i n the i n t e r e s t of p u b l i ch e a l t h , s a f e t y , morals or w e l f a r e . " 57A.2d 4 2 1 , 423. Baron's Law D i c t i o n a r y ,6 t h ed. The O b l i g a t i o n s of a c o n t r a c t f o l l o w s .

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O b l i g a t i o n o f a C o n t r a c tThe c i v i l o b l i g a t i o n s , t he b i n di n g e f f i c a c y , t h e c o e r c i v e power, t h e l e g a l duty ofp e r f o r m i n g t h e c o n t r a c t , r e f e r s t o t h e l e g a l requirement b i n d i n g th e c o n t r a c t i n gp a r t i e s t o t h e performance o f t h e i r u n d e r t a k i n g a n d n o t t h e d u t i e s a r i s i n g o u t o f t h ec o n t r a c t i t s e l f . 71 P 301. Except where s p e c i f i c performance i s a v a i l a b l e a s aremedy, one cannot be compelled t o a c t u a l l y perform a c o n t r a c t o b l i g a t i o n ; r a t h e r ,he merely s u b j e c t s h i m s e l f t o l i a b i l i t y i n damages i f he f a i l s t o honor t he o b l i g a t i o n o f a c o n t r a c t .I m p a i r t h e o b l i g a t i o n o f a c o n t r a c t " t o weaken [ t he c o n t r a c t ] , o r l e s s e n i t s v a l u e ,o r make i t worse i n a ny r e s p e c t o r i n a ny degree...Any l a w which changes t he i n t e n t i o nand l e g a l e f f e c t o f t h e o r i g i n a l p a r t i e s , g i v i n g t o o ne a g r e a t e r a nd t o t h e o t h e ra l e s s i n t e r e s t o r b e n e f i t i n t h e c o n t r a c t , i m p a i r s i t s o b l i g a t i o n s . " 115 A. 4 84 ,486."The e xt en t of th e change i s i m m a t e r i a l . Any d e v i a t i o n from i t s terms by h a s t e n i n go r p o s t p o n i n g t h e time o f performance which i t p r e s c r i b e s , o r imposing c o n d i t i o n sn o t i n c l u d e d i n t h e c o n t r a c t , o r d i s p e n s i n g w i t h t h e performance o f t h o s e t h a t a r ei n c l u d e d . . . i m p a i r s t h e o b l i g a t i o n o f a c o n t r a c t . " I d .Impairment i s a l s o s a i d t o e x i s t where t h e r i g h t t o e n f o r c e a c o n t r a c t i s e l i m i n a t e do r s u b s t a n t i a l l l y l e s s e n e d . S ee 185 A. 4 0 1. S t a t e s t a t u t e s which do so ar e pr oh i b i t e d by A r t i c l e 1, S e c t i o n 10 o f t h e U.S. C o n s t i t u t i o n .

Under O b l i g a t i o n a nd C o n s t r u c t i o n o f C o n tr a c t, , (1 ) I f t h e c o u r t a s a mattero f l a w f i n d s t h e c o n t r a c t o r a ny c l a u s e o f t h e c o n t r a c t t o have been u n c o n s c i o n a b l ea t t h e time i t was made t h e c o u r t may r e f u s e to.enforce t h e c o n t r a c t , o r i t mayl i m i t t h e a p p l i c a t i o n o f a ny u n c o n s c i o n a b l e c l a u s e a s t o a v o i d a ny u n c o n s c i o n a b l er e s u l t . ( 2 ) When i t i s c l a i m e d o r appears t o t h e c o u r t t h a t t he c o n t r a c t o r a nyc l a u s e t h e r e o f may b e u n c o n s c i o n a b l e t h e p a r t i e s s h a l l h e a f f o r d e d a r e a s o n a b l eo p p o r t u n i t y t o p r e s e n t evidence a s t o i t s commercial s e t t i n g , purpose= and e f f e c tt o a i d t h e c o u r t i n making t h e d e t e r m i n a t i o n U CC Chapter 25, P a r t 3 25-2 - 302 (1)a nd ( 2 ) C o n t r a c t C l a u s e : The p r o v i s i o n s i n A r t i c l e 1 o f t h e U.S, C o n s t i t u t i o n t h a tn o s t a t e may pass a l aw a b o l i s h i n g c o n t r a c t s o r denying them l e g a l e f f e c t , Oran's

There a r e t w o l e g a l terms t h a t a r e o f t h e utmost importance a t t h i s p o i n t - Th eterms a r e r e s i n t e r a l i o s a c t a p r e v i o u s l y p r o v i d e d a nd o v e r b r e a d t h which f o l l o w s .These terms a r e i m p o r t a n t a s t h e y f u n c t i o n t o p r o t e c t A p p e l l a n t a g a i n s t F e d e r a l i s ma nd o v e r t a c c u s a t i o n s unfoimded i n l a w .

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Second, a f t e r t h e naked s h o r t a nd l e g a l and i l l e g a l t r a d i n g . A p p e l l a n t S t a n l e yw as c o n t a c t e d b y Rufus H a r r i s t o t e l e p h o n e t h e Radio Commentator. A f t e r makingc o n t a c t , A p p e l l a n t was asked a q u e s t i o n by t h e Radio Commentator. T he q u e s t i o nw as d e s i g n e d t o c o r r e c t a problem i n a c o r p o r a t i o n pending SEC merger a p p r o v a l ,naked s h o r t s a nd l e g a l and i l l e g a l t r a d i n g a c t i v i t y . A p p e l l a n t ' s answer was basedon c o r p o r a t e i n f o r m a t i o n from p r i o r c o r p o r a t e f i l i n g s , c o r p o r a t i o n p r es s r e l e a s e sand board meetings t o i n c l u d e b u s i n e s s judgment r u l e s , r e s i n t e r a l i o s a c t a a ndo v e r b r e a d t h . A p p e l l a n t was w e l l w i t h i n t h e l i m i t s o f p r o t e c t i o n p r o v i d e d by t h eC o n s t i t u t i o n o f th e U n i t e d S t a t e s , Amendment I . A t t h e t r i a l , Do n Maddalona d m i t t e d r e s p o n s i b i l i t y f or : h i s a c t i o n s and h i s n e g l i g e n c e which c r e a t e d t h e charges.^T he c o u r t ' s e a r s a nd t h e p r o s e c u t o r ' s e a r s were closed

BUSINESS JUDGMENT RULE. CORPORATIONS(BLACK'S LAW, S t h Ed.)

The presumption t h a t i n making b u s i ne s s d e c i s i o n s n o t i n v o l v i n g d i r e c t s e l f -i n t e r e s t o r s e l f d e a l i n g s , c o r p o r a t e d i r e c t o r s a c t on an i n f o r me d b a s i s , i n goodf a i t h , a nd i n t h e c o r p o r a t i o n s b e s t i n t e r e s t . The r u l e s h i e l d s d i r e c t o r s and o f f i c e r sfrom l i a b i l i t y f o r u n p r o f i t a b l e o r h a r mf u l c o r p o r a t e t r a n s a c t i o n s i f t he t r a n s a c t i o n smade i n good f a i t h , w i t h due-care, a nd w i t h i n t h e d i r e c t o r ' s o r o f f i c e r ' s a u t h o r i t y .( I n f a c t when t h e bonds came i n t o t h e company by way o f Sabra Dabbs, she was ano f f i c e r o f s a i d company. Company A t t o r n e y Maurice Bennett a n d o t h e r o f f i c e r s v o t e df o r t h e Bonds C o n t r a c t t o b e approved. I t was not an i n d i v i d u a l v o t e . Mike Alexandera nd h i s company o f f i c e r s agreed t o t h e bonds and merger.)

And t h i r d , A nn N e l k i n a d m i t t e d s h e a nd Sabra Dabbs c o n s p i r e d t o c r e a t e a n a r t i f i c e t o "recoup money l o s t i n a d i v o r c e , " a nd t h e tw o o f them c a r r i e d o u t t h e a r t i f i c e .Ann N e l k i n purchased F r o n t h a u l s h a r es pre-merger based upon i n s i d e r t r a d i n g i n f o r mation. M s. A n n N e l k i n a d m i t t e d under Oath a t t h e t r i a l t h a t s he v i o l a t e d SECr u l e s a nd r e g u l a t i o n s . A p p e l l a n t S t a n l e y was r e s i n t e r a l i o s a c t a t o A nn N e l k i ndeeds, a nd w as w r o n g f u l l y charged a nd c o n v i c t e d . S ee page 4 0 f o r A nn N e l k i n ' st e s t i m o n y a n d T r i a l T r a n s c r i p t TT1264:20 through TT1293:.

To execute counts 3-7 t he U.S. A tt or ne y v i o l a t e d A r t i c l e 6, paragraph 3,h i s o a t h o f o f f i c e . V i o l a t i o n o f h i s Oath o r Oath o f O f f i c e means h e d i d n o t honorA p p e l l a n t ' s C o n s t i t u t i o n a l R i g h t s f o r d ue p r o c e s s V, e q u a l p r o t e c t i o n o f t h e l a w( X I V) a nd A p p e l l a n t ' s r i g h t s t o engage i n c o n t r a c t s o r o v e r b r e a d t h I X )

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Overbreadth d o c t r i n e . C o n s t i t u t i o n a l l aw . The d o c t r i n e h o l d i n g t h a t i f a s t a t u t ei s Sq b r o a d l y w r i t t e n t h a t i t d e t e r s f r e e e x p r e s s i o n , t h en i t can be s t r u c k downon i t s f a c e because o f i t s c h i l l i n g e f f e c t - even i f i t a l s o p r o h i b i t s a c t sthat niay l e g i t i m a t e l y be f o r b i d d e n . . B l a c k ' s Law D i c t i o n a r y , S t h e d .

r e s i n t e r a l i o s a c t a [ L a t i n a t h i n g done between o t h e r s ] 1. C o n t r a c t s . The commonl a w d o c t r i n e h o l d i n g t h a t a c o n t r a c t cannot unfavorably a f f e c t t h e r i g h t s o f a personwho i s n o t a P a r t y t o t h e c o n t r a c t . [ c a s e : c o n t r a c t s key 186b ( 1 ) ] 2. E v i d e n c e .T h e r u l e p r o h i b i t i n g t h e a d m i s s i o n o f c o l l a t e r a l f a c t s i n t o evidence, [ c a s e s :c r i n i n a l law key 3 3 8 ( 1 ) , 369 1; E v i d e n c e key 99, 130,] B l a c k ' s Law 9t h ed .

Important t o A p p e l l a n t ' s defense a r e t h e d e f i n i t i o n s o f Overbreadth a nd r e si n t e r a l i o s a c t a . I n Count 1, A p p e l l a n t was accused o f c o n s p i r i n g by a i d i n g anda b e t t i n g two o t h e r s t o e x e c u t e a scheme t o d e f r a u d w i t h r e g a r d t o t h e p u b l i c l y -t r a d e d s e c u r i t i e s o f C o n v er s i o n S o l u t i o n H o l d i n g C o r p o r a t i o n from e a r l y 2005 t oNovember 9, 2009. As a t t e s t e d elsewhere throughout t h i s motion. A p p e l l a n t ' sd u t i e s were s p e c i f i e d by c o n t r a c t . T h i s A p p e l l a n t never had an agreement w i t hanyone t o c r e a t e a scheme t o d e f r a u d p u b l i c l y - t r a d e d s t o c k . Through h i s work c o n t r a c tA p p e l l a n t was i s s u e d 9 m i l l i o n s h a r e s o f s t o c k when o r i g i n a l l y h i r e d by c o n t r a c ti n t o Waatle. S h o r t l y a f t e r b e i n g i s s u e d . A p p e l l a n t g i f t e d f a m i l y member s h a r e s .G i f t i n g o f s h a r e s i s p e r f e c t l y l e g a l and d u l y r e c o r d e d . A p p e l l a n t d i d n o t commita c r i m e and he d i d n o t c o e r c e Ms. S t a n l e y t o t r a d e h e r shares. Testimony by E r i cDeneault - B r o k e r a t P o i n t C a p i t a l d i s c l o s e s t h a t he c o n t a c t e d Ms. S t a n l e y t oopen h e r account before v e r i f y i n g t h a t she c o u l d t r a d e h e r r e s t r i c t e d s h a r e s . Regardi n g Count 1 and th e t r a d i n g o f shares. A p p e l l a n t i s r e s i n t e r a l i o s a c t a because heh a d no i n v o l v e m e n t i n t h e t r a n s a c t i o n and he was n ot a p a r t y t o t h e s a l e s c o n t r a c t .A t TT786:22-23 p. 86 Mr. Deneault c o n t a c t s Ms. S t a n l e y . TT788:22-789:1 p. 86Deneault admits he s e n t t h e h a r d copy o f t h e s h a r e c e r t i f i c a t e t o t h e T r a n s f e rAgent (Don Maddalon) who removed t h e r e s t r i c t i o n s from 1 m i l l i o n s h a r e s . TT799:16-2 5 , p. 86 Mr. Deneault a t t e s t s t h e s h a r e s belonged

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USA v Harris Doc 317 Filed 03 Jun 13