NOTICE and DEMAND From: Peter Patriot c/o PO Box 9999 Spokane, Washington Hereinafter referred to as Claimant To:

ALLIANCE ONE RECEIVABLES MANAGEMENT INC. Andrew W. Grace, President Scott Anders, Vice President Patricia Purcell, Manager 6565 KIMBALL DRIE SUITE 200 GIG HARBOR, WA 98335-1206 800-456-8838 253-620-2222 253-620-7368 http://www.allianceoneinc.com/ info@allianceoneinc.com Hereinafter collectively referred to as RESPONDENT June 18, 2010 RE: Alleged Account No. 23599999 NOTICE OF DISPUTE; DEMAND FOR VALIDATION AND PROOF OF CLAIM Dear Sir/Madam: Thank you for your offer dated May 14, 2010, titled, ACCOUNT INFORMATION (hereinafter OFFER) and only recently received by me, copy of which is enclosed. Understand that, without your proving your claim according to law, any of your actions in attempting to collect a debt for which I am not liable is tantamount to FRAUD; and you will be prosecuted to the full extent of the law for your disregard of lawful due process, should you proceed.. It is not now, nor has it ever been, my intention to avoid paying any obligation that I lawfully owe. Be advised that your claim is disputed and validation and proof of claim of the disputed debt is respectfully demanded in accordance with the Fair Debt Collection Practices Act, 15 USCG 1692 et seq., and the Fair Credit Billing Act, 15 U.S.C. 1666. This is NOT a request for verification or proof of Claimant mailing address, but a respectful demand for VALIDATION and PROOF OF CLAIM made pursuant to the above named Titles and Sections. I respectfully demand that your offices provide Claimant with competent evidence as per the attached DEBT COLLECTOR DECLARATION and PROOF OF CLAIM that I have any legal obligation to pay you the unsubstantiated alleged debt. Furthermore you shall cease all verbal communication. No phone calls to the Claimant are allowed. At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureaus, such as, Equifax, Experian and TransUnion prior to validation and proof of claim of the disputed debt, this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of Claimant credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you and your client for the following: Violation of the Fair Credit Reporting Act Violation of the Fair Debt Collection Practices Act Defamation of Character Violation of United States Code TITLE 18 PART 1 CHAPTER 63 Sec. 1341 This debt is considered to be invalid until I receive proper validation and your offices provide Claimant with proof of claim of the disputed debt. Your offices have 30 days to produce the required documentation in accordance with FTC guidelines. During this validation period and proof of claim, if any action is taken which could be considered Debt Dispute Page 1 of 6 Certified Mail#: 7008 1830 0002 4096 1230

detrimental to any of Claimant credit reports, said action will be considered a dishonor and cause the selfexecuting contract portion of this notice to be implemented. This includes any listing of any information to a credit reporting repository that could be inaccurate or invalidated. If your offices fail to respond to this validation and proof of claim demand within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from Claimant credit file and a copy of such deletion request shall be sent to Claimant immediately. To do otherwise will constitute fraud, and you surely must be well aware that there is no statute of limitations as regards fraud. 809. Validation of debts [15 USC 1692g] (b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. BLACKS LAW DICTIONARY: VERIFICATION. Confirmation of correctness, truth, or authenticity, by affidavit, oath, or deposition. Counter Claim with Self-executing Contract If RESPONDENT, such as by commission, omission, or otherwise:

(a) Fails to provide VALIDATION and PROOF OF CLAIM within thirty (30) days, by answering in affidavit
form the items in the below section titled, DEBT COLLECTOR DECLARATION and PROOF OF CLAIM; (b) Fails to provide Claimant with certified copies of the accounting of the alleged ACCOUNT INFORMATION that Claimant allegedly executed, to wit: the Accounts Receivables and Accounts Payables ledgers of this ACCOUNT INFORMATION. (c) Makes a false representation of the character of the hereinabove-referenced alleged debt; (d) Makes a false representation of the legal status of the hereinabove-referenced alleged debt; (e) Makes any threat of action that cannot legally be taken, in violation of any applicable law, such as, the law codified at the Fair Debt Collection Practices Act, then such act of omission will be construed to be RESPONDENTS tacit acceptance of the terms and condition stated herein. In which case RESPONDENT agrees to:

(f) (g) (h) (i) (j)

Voluntarily report this account to all credit bureaus as paid as agreed; and, Voluntarily waive all claims against Claimant, their Agent or Heirs with prejudice; and, The matter regarding the alleged debt is finally and totally settled; and, Voluntarily admits the Claimant is the depositor for this account, that RESPONDENT risked none of their assets at any time regarding this account and that they failed to disclose these material facts to Claimant; and, Voluntarily report the date of last activity on this account is the date of this notice.

Furthermore, RESPONDENTS failure to Cease and Desist in accordance with the requirements of the FDCPA and other related law, and/or satisfy the above terms and conditions, constitutes RESPONDENTS Breach of Duty and voluntary agreement to compensate Claimant, by certified mail, with a cashiers check within thirty (30) days of the date of billing by Claimant, their Agent or Heirs, in the following amounts: Seventy-five Hundred Dollars ($7,500.00) for each communication made to Claimant or their Agent or Heirs, whether telephonically or in writing, which is not in affidavit form by a person who has first hand knowledge, regarding RESPONDENTS unsubstantiated claim; and, II) Fifty Thousand Dollars ($50,000.00) for each transaction initiated by Claimant where Claimants commercial ability is impeded due to you, your agents or assigns adverse credit reporting; and, Debt Dispute Page 2 of 6

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III) Seventy-five Thousand Dollars ($75,000.00) for each court appearance Claimant, their Agent or
Heirs makes in response to RESPONDENTS unsubstantiated claims; and,

IV) RESPONDENT owes Claimant the balance equal to the purported credit limit on this account, plus
interest and fees, for money lent; and, V) Three times the alleged claim amount of $779.00 (seven hundred seventy-nine and 00/100 dollars) that equals two thousand three hundred thirty-seven and 00/100dollars ($2,337.00); VI) Five Thousand Dollars ($5,000.00) per occurrence, for listing or reporting any information to a credit reporting repository which could be considered detrimental to Claimants credit history; and, VII) Punitive damages in the amount of two hundred twenty-five thousand dollars ($225,000.00); and VIII) RESPONDENT tacitly agrees that RESPONDENT will compensate Claimant for all costs; fees and expenses incurred in defending against this and any and all continued collection attempts (by anyone) re: the above-referenced alleged account RESPONDENT also agrees to:

1.

Voluntarily authorize Claimant to record a UCC-1 on RESPONDENT as debtor to secure the debt owed Claimant; and, 2. Voluntarily prove their claim as a RESPONDENT in possession of Claimant property in an involuntary bankruptcy proceeding process; and, 3. Voluntarily compensate Claimant for ALL costs and attorneys fees; and, 4. Resolve ALL claims by Claimant, against RESPONDENT, et al, exclusively and finally through binding arbitration, if necessary, to enforce the above terms, conditions, fees, penalties and damages. Arbitration replaces the right to go to court except to confirm an arbitration award. The arbitration organization that is selected at the sole discretion of Claimant, will apply its code or procedure in effect at the time the arbitration is filed, subject to this agreement. The arbitration will be conducted before a single arbitrator. The arbitrators authority is limited solely to the Claims between Claimant and RESPONDENT alone. The arbitration will not be consolidated with any other arbitration proceeding. If Claimant prevails in the arbitration of any Claim against RESPONDENT, RESPONDENT will reimburse Claimant for any fees Claimant paid to the arbitration organization in connection with the arbitration. Any decision rendered in such arbitration proceedings will be final and binding on the parties, and judgment may be entered in a court of competent jurisdiction. This arbitration provision applies to all Claims now in existence or that may arise in the future. The arbitration provision shall survive any voluntary payment of Claimants claim against RESPONDENT, in full, or RESPONDENT'S bankruptcy. This is a private communication and is intended to affect an out-of-court settlement of this matter. Conduct yourself accordingly. Should any provision on this agreement be found to not be enforceable by order of a court of competent jurisdiction, it shall not adversely affect any other provision of this agreement and reasonable opportunity and effort shall be taken to modify it to become enforceable. Equality under the Law is PARAMOUNT and MANDATORY by Law

NOTICE TO THE PRINCIPAL IS NOTICE TO THE AGENT; NOTICE TO THE AGENT IS NOTICE TO THE PRINCIPAL
Applicable to all successors and assigns Silence is Acquiescence/Agreement/Dishonor SEAL Executed on this 18th Day of June, 2010, By: _____________________________________ Peter Patriot, Claimant

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DEBT COLLECTOR DECLARATION and PROOF OF CLAIM Please provide all of the following information and submit the appropriate forms and paperwork back to me along with an Affidavit signed In Accordance with 28 U.S.C. Section 1746 within 30 days from the date of your receipt of this demand for validation and proof of claim, via the Notary Public named below. Please provide your name, occupation and title, and mailing address. 2) 3) Identify the source of funds in the account that is the subject matter of this loan account. Produce all records, reports and memoranda relating to the source of funds relating to this disputed account and list all other sources of information such as computer file names, names of databases or locations at which related information is located or accessible, and any identifiers to such information. What was the account number of the account in which the funds were held prior to the opening of the account that is the subject matter of this demand for payment of loan? Who was the owner of each account or, list those individuals having signature rights to each account? Identify the account that was debited when the disputed account was created. Who was the owner of each account, or list those individuals having signature rights to each account? Identify the source of funds that created the disputed account. Did the funds for the disputed account originate from another account or lending institution? List the names and addresses of all lending institutions from which any funds were purportedly originated. Please identify the account number from which the funds originated in order to create the disputed account. Admit, or in the alternative, provide evidence to the contrary that no other account was debited when the disputed account was created. In the event that you deny that no other account was debited when the disputed account was opened or created, please identify the account that was debited by account number and/or any and all identifiers thereof and the name or names of the debited account's signer(s), holder(s) and/or owner(s), and explain how the funds for this account were originated. In the event that you deny that no other account was debited when the disputed was opened or created, state the total balance of this debited account at the time the debit was made; and, list the names of the signer(s) on the account and the date the account was opened along with the opening balance. Admit, or in the alternative, provide evidence to the contrary that Cindy-Lou Fancher Raught was the Depositor for the account that is the subject matter of this demand for payment of loan. Please provide all documents and information, related in any way, to your implication or allegation that a loan was given to Cindy-Lou Fancher Raught.

4) 5) 6) 7) 8) 9) 10) 11) 12) 13)

14)

15) 16)

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17) 18) 19)

Which employee of the bank, lending institution(s), financing company(ies) authorized the transactions? If the loan origination system, software or other procedures were used in the opening of the disputed account, please identify the system by name and/or identifier and describe how it works. According to the alleged loan agreement, was the purported lender or financial institution(s) involved in the alleged loan to use their own money as adequate consideration to purchase the promissory note from the alleged borrower? YES or NO According to the bookkeeping entries, did the purported lender or financial institution(s) involved in the alleged loan use their own money as adequate consideration to purchase the promissory note from the alleged borrower? YES or NO According to the alleged loan agreement, was the purported lender or financial institution(s) involved in the alleged loan to accept anything of value from the alleged borrower that would be used to fund a check or similar instrument in approximately the amount of the alleged loan? YES or NO According to the bookkeeping entries, did the purported lender or financial institution(s) involved in the alleged loan accept anything of value from the alleged borrower that would be used to fund a check or similar instrument in approximately the amount of the alleged loan? YES or NO Was the intent of the purported loan agreement that the party that funded the loan should be repaid the money lent? YES or NO Did the purported lender or financial institution(s) involved in the alleged loan follow Generally Accepted Accounting Principles (GAAP)? YES or NO Were all material facts disclosed in the written agreement? YES or NO What was the name and address of any bank auditor or certified public accountant involved with or having any relation to the accounting function regarding the disputed account? Identify the name of the records, system of accounting records or ledgers reflecting the transaction for the disputed account. Were any loan numbers and identifiers to any loan numbers assigned to the disputed account? YES or NO If you answered YES to the above question, please list those account numbers and identifiers to those account numbers. Explain how each account was created or originated. Explain how the funds for each account were deposited and where they originated. Was an account created with the purported loan amount, and then debited to fund the disputed account? Please explain your answer to the above question. Please produce all records and tangible evidence relating to the questions herein and send them along with your response to the undersigned. Verify that you know and understand that contacting me again after receipt of this notice without providing procedurally proper validation of the debt constitutes the use of interstate communications in a scheme of fraud by advancing a writing, which you know is false with the intention that others rely on the written communication to their detriment is a violation of United States Code TITLE 18 PART 1 CHAPTER 63 Sec. 1341. Page 5 of 6

20)

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23) 24) 25) 26) 27) 28) 29) 30) 31)

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Claimant charges RESPONDENT with committing numerous acts of fraud, inclusive of any and all administrative, judicial and/or non-judicial proceedings, including without limitations, RESPONDENTS purposeful fraud in attempting to appear as CREDITOR to the Claimant, when in fact RESPONDENT is well aware they are not the CREDITOR and therefore NOT the Real Party in interest in this fraudulent attempt at collection. Is RESPONDENT the real party in interest in this matter, YES or NO? Accordingly, if RESPONDENT is not the CREDITOR in this Matter, then RESPONDENT has thus stipulated, by tacit procuration, that Claimant MUST be the CREDITOR in this matter. RESPONDENT cannot be the CREDITOR in this instant matter as RESPONDENT NEVER risked any assets, nor is RESPONDENT holding any assets. No ENTITY can be a CREDITOR if they do not hold the asset in question, [i.e.: the NOTE and/or the property]; Does RESPONDENT claim to be the CREDITOR in this matter, YES or NO? Does RESPONDENT claim to be a lawful ASSIGNEE of the CREDITOR, in this instant matter, YES or NO? RESPONDENT did NOT put RESPONDENTS assets at risk in this instant matter, YES or NO? At the closing, Claimant placed her signature on a Promissory Note which was given to the bank in the exchange. Said Promissory Note had no value prior to the placing of Claimant's signature on it. Did it not? There are no other signatures on said Promissory Note, therefore, it was Claimant's signature that gave the value to the Promissory Note which was given to the bank in the exchange. Was it not? When Claimant placed her signature on the Promissory Note, giving value to the Note, Claimant was the originator of the funds and, therefore, the Creditor of the transaction YES or NO? After the execution of the promissory note, the Bank deposited said Promissory Note as a cash item and ledgered said Note as a liability in the banks Payables Account and identified Claimant as the Creditor in the account. Did they not? UCC 3-104(a) & (c) and UCC 105 (a)(c) makes it clear that Claimant was the Issuer, Drawer, Maker of the Note that Claimant executed, giving it value, at the closing, while UCC 8- 102(12), (15),(9) and UCC 8-105 leaves no doubt that Claimant is the holder of the entitlement right to the funds. Claimant is the Creditor and entitlement holder with the authority to issue Entitlement Orders as concerns this transaction and/or this account, YES or NO?

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Executed on this 18th Day of June, 2010, ______________________________________ by Peter Patriot, Claimant

SEAL

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