AMG LEGAL SYSTEMS PROTOTYPE Mastered On April 16, 1991 at Commadore Inc., January 17, 2017

Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
Page
Page
Page
Page
Page
Page
123
33
84
33
32
33
33
33
of
of
ofof
51
of
51
414
50
51
453
51
51
Tuesday,
Thursday,
Tuesday,
Friday,
Tuesday,
March
Tuesday
March
December
15,
March
2016
15,
3/15/2016
July
2016
17,
15,
11,
5, 2015
2016
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$
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A $
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/9
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./ !"01
20
1987 Documents on CD-ROM by AMG 1991

TI=\FERRANTI - ISC - GUERIN - CATERBONE COMMUNICATION MATRIX (FRAUD)
IM= 310.CPR
DA= January 18, 1991
AT= AUDIO TRACKS: /ALL
PA= PAGES: 01
SU= SUMMARY: This communication matrix illustrates the flow of
information that was used in the alleged "BLACK MAIL" of
Stan Caterbone and the "ISC $BILLION DOLLAR COVERUP"
************************************************************
TI=\ISC PURCHASE
IM= 001P01.CPR
DA= September 21, 1983
AT= CORRESPONDING AUDIO TRACKS: 02/08/09
PA= PAGES:
2
SU= SUMMARY: Confirmation of the purchase of 1000 shares of
International Signal & Control bought by Stan Caterbone
on Septermber 21, 1983. This stock was recommended
and solicited by Gibson Armstrong of Individual
Securities, of Lancaster PA.
01
IM= 001P02.CPR
DI= PAGE 2
*****************************************************************
TI=\HIGH EMPLOYMENT
IM= 002P01.CPR
DA= October 25, 1985
AT= CORRESPONDING AUDIO TRACKS:
PA= PAGES:
1
02/
SU= SUMMARY: Letter to Paul Lewis, of High Associates, subsidiary of

High Industries, requesting considerations for
Employment. Ed Gordon, controller of the Horst Group,
had reffered Stan Caterbone to High Associates.
*****************************************************************
TI=\COMMONWEALTH BANK SOLICITATION FOR EMPLOYMENT
IM= 003P01.CPR
AT= CORRESPONDING AUDIO TRACKS: 02/03/04/05/06/07/08/09
PA= PAGES:
1
SU= SUMMARY: Letter to Larry Zieliski of the Commonwealth National
Bank, from Stan Caterbone requesting considerations for
Page 1

employment in the Financial Services Department.
*****************************************************************
TI=\OWEN KUGEL ASSOCIATES EMPLOYMENT MEETING
IM= 004P01.CPR
DA= November 5, 1985
AT= CORRESPONDING AUDIO TRACKS: 03
PA= PAGES:
1
SU= SUMMARY: Letter thanking Owen Kugel for the interview with himself
and Ed Potius, for the employment considerations for raising funds for
the development projects. S. Caterbone never heard back until they wanted
funding from S. Caterbone in 1987.
************************************************************
TI=\PRO FINANCIAL GROUP, Ltd., BROCHURE
IM= 005P01.CPR
DA= April 4, 1986
AT= CORRESPONDING AUDIO TRACKS: 01/02/04/07/08
PA= PAGES:
2
SU= SUMMARY: Brochure of the Pro Financial Group, Ltd., a
Penssylvania corporation owned soly by Stan Caterbone, and was
the preliminary design of Financial Management Group, Ltd.,
IM= 05P02.CPR
DI= PAGE 2
************************************************************
TI=\PARENT FEDERAL SAVINGS MORTGAGE CHECK
IM= 006P01.CPR
DA= July 12, 1986
AT= CORRESPONDING AUDIO TRACKS: 02/03/08/09
PA= PAGES:
1
SU= SUMMARY: Copy of the check for the loan proceeds for the
residence at 2323 New Danville Pike, Conestoga PA, of which Stan
and Mike Caterbone borrowed $100,000 from Parent Federal
Savings and Loan, owned by James Guerin.
************************************************************
TI=\S. CATERBONE FMG, Ltd., STOCK PURCHASE
IM= 007P01.CPR
DA= June 26, 1986
PA= PAGES:
1
SU= SUMMARY: Initial stock certificate for Stan Caterbone
granting 40,000 shares of FNG, Ltd., stock. Stan Caterbone paid
$.50 per share or $20,000 in full on June 26, 1987.
************************************************************
Page 2

TI=\R. KAUFFMAN FMG, Ltd., STOCK PURCHASE
IM= 008P01.CPR
DA= June 26, 1986
AT= CORRESPONDING AUDIO TRACKS: 02/03/05/06/08/09
PA= PAGES:
1
SU= SUMMARY: Initial stock certificate for Robert Kauffman. Robert
Kauffman paid $.50 per share. Mr. Kauffman recieved
60,000 shares of stock. Since Stan Caterbone was as
responsible as anyone, if not more, for the development
of FMG, Ltd., Mr. Kauffman agreed to an option agreement
to Stan Caterbone for 10,000 shares at $.50 per share.
Stan Caterbone was adement about having equal equity with
Mr. Kauffman. In addition, Mr. Kauffman had never paid
for the additional 20,000 shares he purchased. He only
paid for 40,000. This is a violation of PA Securities laws.
************************************************************
TI=\FMG, Ltd., CHARTER BUSINESS PLAN
IM= 009P01.CPR
DA= July 1, 1986
AT= CORRESPONDING AUDIO TRACKS: 01/02/04/05/06/07/08
PA= PAGES:
20
SU= Charter Business Plan for FINANCIAL
MANAGEMENT GROUP, LTD. of Lancaster, Pa
Dated July 1, 1987, created by S. Caterbone
TABLE OF CONTENTS:
Mission Statement
Corporate Objectives
Business Strategies
Distribution Strategies
Services Strategies
Market Penetration Strategies
Planner Support Services
Corporate Standards
Initial Capitalization
Financial Highlights
Contingency Plans
The Management Group
Organizational Charts:
Exhibit A
Exhibit B
MISSION STATEMENT
Page 3

l. To serve the people of the county, state and nation in the
handling of their finances through the support of our financial
planners and other advisors, and their personal relationships with
their clients.
2. To meet the expectations of our various constituencies:
planners, employees, stockholders, and the people residing in the
area we serve.
OBJECTIVES
l. To position the company as the major provider and servicer of
financial products and advice in the closely related fields of
investments, financial consultation, mortgage banking, life insurance,
property and casualty insurance, taxes, law, and real estate.
2. To transform the fragmented market of independent financial
planners into a quality group of outstanding professionals marketing
under one name, thus bringing order to the financial marketplace.
3. To place client interest first at all times by delivering a diversified
product through multiple sponsors so as to always deliver
high-quality and fairly priced products representing the top 25%
percentile of the marketplace.
4. To develop and maintain quality service on previously delivered
products by managing assets at a reasonable fee, thus freeing
planners from the constant pressure of making new sales.
5. To insure the growth of the business by hiring professional
planners in sufficient number so as to become the pre-eminent
financial services company in the area served.
6. To use invested capital rather than loans and long-term leases
to minimize monthly expenses and maximize profits, hereby
assuring our business growth and development.
7. To encourage
thus satisfying
value. Also to
through stronger
our planners to become stockholders in the firm,

their desire for ownership in a company of real
assure a more stable development of our business
ties with our top planners.
8. To react to changes in the marketplace ahead of our competition

in creative and thoroughly considered ways.
9. To maintain a strong professional/client relationship through
frequent personal contact while using high-technology equipment
Page 4

to enhance the quality of our work.
BUSINESS STRATEGIES
1.
CURRENT SITUATION
Dozens of small independent planners servicing dissimilar

markets through product sales.
COMPANY STRATEGY
Recruit the small, independent financial planner into our group
using a variety of motivating factors:
l. economics (reduce their expenses, expand
their resource material and backup)
2. marketplace recognition and dominance
3. company identity
4. equity ownership
5. product diversity
6. higher commissions on each sale through group
negotiation of payout
7. specially expertise in related financial areas
and reference material
2.
CURRENT SITUATION
Life insurance and brokerage businesses are suffering from poor

performance of products, bad press, and low-quality recruiting
cutting commissions; while productive veterans in these industries
are uneasy with these changes.
COMPANY STRATEGY
Recruit the most senior, productive brokers and agents who desire
to do more personal planning by providing the advantages cited in
paragraph 1 above.
3.
CURRENT SITUATION
The l986 Tax Act threatens to reduce the need for tax planning,
and tax qualified plans. Rather than seek shelters and other relief,
investors will be likely to pay tax, and invest savings, thereby
increasing the need for asset management and the creation of
wealth Through equity investment.
COMPANY STRATEGY
Page 5

Market products that are structured with lower up-front costs
and stable ongoing management renewals in order to build
revenue from service over a period of time. This will gradually
replace the heavy emphasis on new salesand give rise to a truly
responsive service oriented business.
4.
CURRENT SITUATION
Mass marketing through corporate benefit plans and the media

continues to grow as a segment of the financial services
business.
COMPANY STRATEGY
Develop corporate sales through the concept of cafeteria plans
which will change the employee benefit market by allowing
employees to target a percentage of benefit dollars to the areas of
their choice. Also, continue to emphasize seminars targeting
unique organizations which have a strong relationship with the
public for specific financial products:
EX.
Charitable organization
Counseling center
charitable giving seminars.

estate planning seminars
life planning seminars, etc.
Additionally, we will develop public awareness by constantly

advertising the corporate name via newspaper and radio.
DISTRIBUTION
1.
Current Situation
We currently have many contracts for financial planners and

other professionals whom we seek to committ to an August
occupancy in new space in Columbia, Maryland
Company Strategy
We plan to increase our Columbia group to 12 financial planners
and 4 other profesionals during the next year. While we plan to
locate and develop in new areas, we will concentrate during our
first year in our Lancaster operations.
2.
Current Situation
At the current time we know some very successful professionals

established in business for at least five years.
Page 6

Company Strategy
We will continue to seek predominately self-sufficient,
professional "veterans" of the industry. Our desire is to
appeal to their need for the freedom to plan and communicate
more effectively with their clients. We'll also offer a higher
payout, more varied products, and a more professional
enviroment. We will duplicate only the most critical brokerage
house services.
3.
Current Situation
Planners have been stable in their relationship with past

employers.
Company Strategy
We expect a very stable core of top planners in Columbia, MD.,
due to strong management, stable planners, strong local
support systems, and equity ownership. We will concentrate on
local development ahead of satellite development. We expect
our satellite retention to be outstanding where equity ownership
is strong and mediocre where equity ownership is weak.
4.
Current Situation
Planners are independent and thus use various planning

techniques, offer a limited product and differ in their areas of
expertise.
Company Strategy
The expertise and techniques of our planners and other
professionals will be pooled to provide clients with higher quality
service and a broader line of products.
SERVICES
1.
Current Situation
Investment products are predominately delivered through

captive sales organizations who manufacture their own products
and manage all monies. This leads to limited product offerings
which frequently do not entirely satisfy specific consumer needs.
It also leads to a mediocre product because there is no
market pressure to insure top quality products that are
competively priced.
Page 7
free

Company Approach
Planners will be free to deliver the highest quality products from
among thousands of sponsors so as to work exclusively for the
benefit of the client. The planner may choose top industry
performers, solid and sizeable companies and a variety of
"niche" products to fill every client need.
2.
Current Situation
Fee-paid financial plans vary widely in price and quality and

depend most heavily on the individual developing the plan or
interpreting it. With regard to consumer expectations, the
marketplace is in disarray.
Company Approach
Fee-based plans in advance of product sales should become
simpler Due to tax reform. The majority of such plans were
originally purchased for tax planning which may no longer be
needed. Our emphasis will be on a business being revived by
tax reform - - Asset Management or Investment Monitoring.
With clients paying their taxes and investing for appreciation
rather than seeking shelters, this business is expected to boom.
We plan to have an in-house portfolio manager and market-timer.
We plan to charge clients an average of .75% for the service. As
planners gain assets under management, their annual income from
this source should alleviate pressure for new clients.
3.
Current Situation
Associated professionals such as attorneys, accountants,

bankers, and insurance and real estate agents seldom
cooperate to help clients attain their goals. The ultimate control
of the client's future business tends to become divided, making
people defensive and producing fear of exposure in the event
of error.
This often leads to professionals discrediting one another or
taking undue credit for advice leading clients to inaction.
Company Approach
In-house legal and real estate professionals will enable a planner
to get such services for his client without fear of losing the client
to outside interests. It will also help consreve revenue normally
spent for such services.
Page 8

4.
Current Situation
Ongoing client service is a desire for most companies in our

marketplace. However, the constant pressure is applied to
planners to produce new clients and new sales as 90% of
earnings is still commission generated. The time required to
prospect and close new sales severely limits the necessary
servicing time.
Company Approach
Ongoing client service will be supplied through a semiannual
newsletter and semiannual client investment update delivered
alternately every three months. The costs of these services will
be borne by client-paid asset management fees, insurance
renewals and mutual fund trailing commissions. Although this
is an ambitious, high-tech undertaking, our basic inclination
remains toward personal client review sessions held on a regular
basis.
We also expect better crossover relationships and broadened
information base for both planners and specialists due to
common location.
Market Penetration Strategy
l. Existing Clients - - Planners and other professional joining
our group will have developed deep personal client relationships
which should allow new investment dollars to be handled by our
people. As follow-up systems are implemented we expect 65%
of all business to come from this source.
2. Seminar Presence - - We plan to present four seminars on
a joint basis with institutions such as colleges, charities,
business organizations and corporations. Our seminars include
"Successful Money Management"- - a soup-to-nuts on
investment products, "Half-Time" - - a life planning seminar,
"Charitable Giving" and Retirement Planning Seminars.
Currently our planners regularly appear at Millersville State
College, RCA, ALCOA, St. Joseph's Hospital and elswhere.
We also plan regular seminars for the general public.
3. Business and Retirement Markets - - These two markets will
be singled out for specific emphasis because of the vast
potential and strong need for planning among these groups.
Business benefit plans and specifically "cafeteria plans" will be
marketed. Retirement markets will be expanded primarily
Page 9

through increased seminar marketing.
It is our plan to provide necessary office and clerical support
services to help each Planner or affiliate conduct his or her
business.
We intend to limit our office to support services
and not to provide specific marketing services for individuals.
Our marketing efforts will be for the group at large, that is to
say that individual prospecting will be a personal expense borne
by the planner or advisor.
Inherent in our support services will be the following:
l}
Phone Handling - including the facility to forward other

business lines to our central system should a planner leave
the office.
2}
Repetitive Standard Correspondence - a sample of thank

you, referral appointment setting, data requests, and commonly
used review letters may be selected and generated. Personal
correspondence will not be handled by our staff, free of
charge.
3}
Business Processing - completed applications will be

checked, logged, copied and mailed by our cashiers.
Follow-up with broker/dealer or product sponsors will be
offered to premier producers only.
4}
Computer Services - financial plans and investment

monitoring services will be provided through data base entry.
Mass distribution and hard-copy plan generation will be done
on a piece by piece and percentage fee basis respectively.
5}
Professional Networking - our in-house affiliates in law,

accounting, tax, estate, real estate, mortgage brokerage,
portfolio management, life insurance and property/casualty
insurance stand ready to serve clients related financial
needs.
6}
Supply Stocking - prospectus, applications, trust

agreements and other forms needed to conduct business with
our major product suppliers will be maintained.
7}
Reference and Periodicals - professional journals and data

services meeting the common need of our advisors will be
purchased and will be maintained by our office staff.
Material unique to specialized areas will be provided by those
Page 10

planners who work in those areas.
8}
Corporate Marketing - we will promote the name of our

firm along with all planner affiliates to gain public awareness
in excess of what any individual alone could achieve. We will
become the best known firm in Central Pennsylvania.
9}
Training and Education - Pooling our production will give

us additional clout with sponsors, industry trainers and those
wishing to address our membership. Cost should be lower
and quality higher. It is our plan to provide a constant flow of
information, new product profiles, and specialized planning
techniques.
10}
Gross Payout Negotiation - Size and strength of our group

should allow us to increase concessions made by sponsors
over amounts normally negotiable by individuals.
OUR STANDARDS FOR A GREAT COMPANY

Having well established business principles is critical to the
success Of any new Business. Only persistence, hard work
and sufficient capital can rival its importance. We feel the need
to state the basic values of this firm so that the basis for the
decision-making is well established and understood.
A great company..
l. Serves its customers well.
2. Treats people properly.
3. Operates on high principles.
4. Makes money regularly.
5. Guards the interests of stockholders and employees.
6. Knows its mission.
7. Knows its position in the marketplace.
8. Desires solid community and corporate citizenship.
9. Hires superior people and pays them well.
10. Will change course amidst changing times.
11. Has the vision to see opportunity.
l2. Retains entrepreneurial spirit.
l3. Has a bias for action (do it, try it, fix it).
l4. Is value driven.
l5. Regards people as its greatest asset.
16. Uses a lean staff, a simple form of management
l7. Pushes decision-making to the lowest level.
l8. Promotes deserving people, regardless of race, sex, or
religion.
Page 11

We hereby resolve to build such a company.
INITIAL CAPITALIZATION
Stock will be offered to the public at $5.00 per share until the
office opens on August 1, 1986. It is our plan to raise
$300,000 which will cover the start-up costs of furnishing the
office, capitalizing the Registered Investment Advisor and
Broker-Dealer, and funding any shortfall in operating revenues
for at least one year.
It is our intention to avoid borrowing monies if at all possible.
We believe that it is best to pay in advance and that a debt-free
status keeps monthly obligations to a minimum, thus reducing
business risk and increasing profitability. We are, likewise,
committed to low management incomes for all
principals/planners who will continue to generate personal
income from sales.
Our initial price will be discounted in order to recognize the
importance of several types of investors in our business. First,
investors who purchase in excess of 5,000 shares are
important because of our limit of 35 investors in the offering
each year.
Without sizeable investors, we will not be able to meet our
target of raising $300,000. Additionally, investors who will also
generate revenue for the business through financial services
marketing provide double value for our firm. Consequently,
we will offer shares at 3.50 to any major investor or producing
investor. If any investor proves to be both major and
producing, his price will be $2.50.
Our estimate of stock value, given recent takeover prices in the industry, would
place the
stock value at $5.60 after one year and $l0.67 after three years.
That price would be 3.5 times book value which increases with
each stock purchase. Purchases of some companies have
been based not on book value but rather on gross
commission income. The going price the last several years
has been a dollar for dollar price. Using that figure stock value
would be $l0.00 in one year, and $13.33 in three years.
Financial Service Corporation, a company reforming in l978,
is valued at $25 million dollars just eight years later. The
potential in this business is obvious, yet there are no
guarantees. This is a start-up business venture and suitable
only for long-term, equity investors.
Page 12

It is our plan to build aggressively in several areas, but to
concentrate in Pennsylvania. We see a special opportunity
with a three to five year window when banks will get into our
business through acquisitions as they continue to lose assets
through their limited banking functions. Should a great
opportunity to sell occur, we would consider it at that time.
Our continued personal planning business could give us the
luxury of cashing our investment and remaining in business.
However, it is much more likely that we will hold our
investments until retirement or pass it on to future
generations.
Our specific issue restricts sales to another party for one year
and also limits repurchases to intrastate parties.
FINANCIAL HIGHLIGHTS
* Actual Statistics as of May 30, 1987
1987
1988
1989
May '87
SALES (Millions)
CAPITAL
54 M
78.1 M
100 M
$80 M
Commissions
(GCI)
2.7 M
3.4 M
5.0 M
$3.5 M
Affiliate
Earnings
.3 M
.6 M
1.0 M
$.5 M
Total Gross
Revenues
3.0Z M
4.0 M
6.0 M
$4.0 M
Net Revenue
Less Commission
.76 M
1.01 M
1.52 M
$ N/A
Manpower
(Proffessionals)
37
43
50
48
Hires
10
12
14
14
Retention
90%
85%
85%
95%
Average Sales
(Per Professional)
$81,081
$107,500
$120,000 85 K
SALES FORCE
FINANCIALS (All Numbers in Millions of Dollars)

Page 13

1987
1988
1989
MAY '87
Revenue
3.0
4.0
6.0
4.0 M
Net Revenue
.76
1.01
1.8
N/A
Retained
(Profits)
.21
.275
.501
N/A
Return on
Equity
70%
53.9 %
66.6 %
N/A
Capital Base
.300
.510
.785
N/A
Book Value
Begining of Year
.300
.480
.725
.300
Book Value
Per Share
1.60
1.81
3.05
4.00
Book Value
End of Year
.480
.725
1.526
N/A
Shares
Outstanding
300,000
Value/Share
(at 3.5 x book)
$5.60
Traditional
$10.00
(at 1 x Total Gross Revenue)
400,000
$6.34
$10.00
450,000 245 K
$10.67
$13.33
$14.00
$17.00
CONTINGENCY PLANS
The begining phase of most businesses phase is characterized
by erratic sales Trends, fluctuating market share, increasing
dependence on improving technological systems, and possible
cash flow losses.
We do not expect to face any of these problems because of
the established nature of the planners we are hiring. However,
we would be foolish to believe that we somehow were immune
from such potential problems and therefore need not to plan
for these eventualities.
Our very first need would be to raise capital through stock
Page 14

purchases beyond our initial capitalization requirements to the
extent of at least $100,000 to cover any initial shortfall in
revenue or budget projections.
This would protect us from going the way of most
undercapitalized businesses - - bankruptcy.
Secondly, we expect to invest heavily in state-of-the-ar
technological system so that we do not face new
hardware/software changes early in our business development.
Stan Caterbone will devote much of his management time to
this area.
Priority will be given to reviewing performance against
objectives on a monthly basis. All objectives will be
quantifiable and measuable, and as necessary adjustments
will be made and monitored accordingly.
Such scrutiny of performance will allow us to constantly assess
and respond to any possible shortcomings and to market
needs.
Our management is committed to deriving a large portion of its
personal income from serving clients as opposed to relying on
management income. This should preserve our cash flow and
insure its growth.
BIOGRAPHY OF STANLEY J. CATERBONE
Stanley J. Caterbone is currently proprietor of S. J. Caterbone
Associates, a Financial Planning Firm specializing in but not
limited to upper income individuals. He is also president and
founder of Pro Financial Group, LTD., a firm providing financial
services and contractual negotiations to Professional Athletes
and Agents.
Stan began his career with a financial subsidiary of American
Express, IDS Financial Services. He was hired by and worked
with Bob Kauffman for six months before Bob was promoted
to the Florida area.
Stan developed a practice centered around fee-based planning
that focused on the tax aspects and concerns of individuals
while they pertained to the clients investments and overall
financial situation. hile at IDS, Stan was one of the leading
planners in the nation to utilize fee based planning at its
inception. He was one of the top producers in central
Pennsylvania, and ranked number 5 in the nation in his class.
He also had closed one of the biggest estate planning cases
Page 15

in the division.
In January 1985, Stan left IDS and became independent to
provide a better Product line for his clients and to escape the
proprietary environment. He is very creative and has
developed a strong practice among physicians.
Stan has developed a variety of professional networks
throughout the country With regard to the various Sports
Professionals that he works with. He is currently working on
a joint venture with former Chief Financial Officer and Vice
President of Doubleday Publishing Company, Richard E.
Madigan. He is looking to Stan to help him manage an
annual income of $7 million from the 20 Professional Athletes
that he currently manages.
Stan has helped to develop the Central Pennsylvania Chapter
of the International Association of Financial Planning, and had
organized and attracted more than 100 persons to attend a
dinner meeting with Alexandria Armstrong, one of the more
prominent Financial Planners in the nation, who is currently
the National President of the IAFP. He is also a member of
the Estate Planning Council of the Institute of Certified
Financial Planners. Stan is currently a Certified Contract
Advisor of the National Football League Players Association
and the NBA. Stan will be an Executive Vice President
responsible for professional networking and marketing and
some of the fiscal and negotiating functions.
BIOGRAPHY OF ROBERT E. KAUFFMAN
Bob Kauffman is currently the National Sales Manager, at large,
for FSC Securities Corporation. FSC is a broker-dealer with a
l200 planner sales force. It raised over 600 million dollars of
investment capital in 1986. Bob's responsibilities include
developing a company-owned distribution system whereby
FSC products and services are delivered to the public-at-large
through FSC Financial Service Centers. Bob is also
responsible for recruiting proven financial planners throug
out the nation for Financial Service Corporation. He also
contributes to the strategic planning of sales for FSC Securities
Corporation..
Bob began his career with a financial subsidiary of the
American Express Corporation in 1976 upon his graduation
from Millersville State College in Millersville, Pennsylvania.
his four years of direct selling to the public, he became the
youngest person in the company to achieve multi-million dollar
Page 16
In

production status at the age of 25. Bob then began to take
on additional associates as he began to build his practice
in Lancaster, Pennsylvania. In just two years, his practice had
grown to l2 representatives handling over $l2 million dollars a
year in annual investments and managing in excess of $60
million dollars of client monies. While building this operation,
Bob continued to be the leading producer in his office and the
region.
Bob was then promoted to division manager of the West
Coast. In that position, He tripled the size of the sales force
and increased volume over 500% in a period of 2 years. His
division of American Express handled over $l00 million dollars
of investor monies.
Bob was then asked to take over the largest operation in the
southeast, located in Atlanta in l984. With over 60 financial
planners, handling an excess of $200 million dollars of
investor's monies, Bob again moved his territory into the top
echelon of the company.
With FSC since l985, Bob has opened the first three
company-owned offices and now supervises an excess of 75
employees. His operations now rank 4th in all FSC related
planning operations. Bob brings to Financial Management
Group, Inc. l0 years of experience in the financial
planning industry in both sales and sales management. He is
a member of the International Association of Financial Planners
and is in the process of completing the course work for
Certified Financial Planners designation. Bob is a frequent
speaker at both corporation and business financial planning
functions and has been quoted frequently in local and national
media publications. He continues to handle investments for
select clients.
Bob will serve as president, chairman of the board and will be
the largest stockholder. His experience in managing and
developing large financial service organizations will provide
the leadership and expertise necessary to insure the growth
we envision.
BIOGRAPHY OF MICHAEL M. HARTLETT, AFP
Mike Hartlett is currently an independent financial planner and
heads his own local firm - - Financial Planning Consultants.
Mike is a licensed securities principal and fully a licensed
securities broker. He has completed the Certified Financial
Planning program with the College for Financial Planning and
Page 17

currently holds an Associate Financial Planner designation.
He will receive the Certified Financial Planner designation in
February 1987.
Mike began his Financial Planning career five years ago with
IDS a subsidiary of American Express. During his career with
IDS he was among the firm's top planners. He was on the
Presidents Advisory Council for IDS in 1985 and from a field
of over 5,200 IDS planners, finished among the top 66 financial
planners in the country. In 1983 and 1984 he was among the
top three in IRA/Qualified Plan Production. In September,
1985 he left IDS to form his own financial planning firm.
Mike has an extensive knowledge of corporate retirement plans
and pension programs and has excelled in retirement planning
for individuals. He conducts financial planning seminars in
several large Lancaster County corporations and is active in
promoting financial planning in Lancaster County.
Mike currently manages in excess of $14 million in client
assets. Mike is committed to delivering the highest quality
planning services to his clients. He believes that personal
attention and service are the key to a strong client/planner
relationship.
Mike will serve as Executive Vice President of Financial
Management Group, Ltd. He will be in charge of operations
and serve as chief financial officer.
FINANCIAL MANAGEMENT GROUP, LTD. (Exhibit A)
Financial Securities, Inc. ................The Broker Dealer
FMG Advisory, Inc. ........................The Registered Investment
Advisor
Financial Services Insurance Agency .......The Insurance Agency
FMG Accounting Services, Inc. .............The Accounting Firm
Financial Mortgages Services, Inc. ........The Mortgage Broker
Wealth Management Services, Inc. ..........The Portfolio
Manager & Market Timer
Financial Planning Consultants, Inc. ......The Financial Planning
Firm
AFFILIATE FIRMS (In House)
Berger Real Estate ........................Real Estate Services
O'Day & Smith .............................Legal Counsel for Business
& Real Estate
Shirk, Reist, Wagenseller & Shirk .........Legal Counsel for
Page 18

Estate Planning
Lovell Associates, Inc. ...................Property & Casualty
Services
Pro Financial Group, Inc. .................Services for Professional
Athletes
* Please note that the above firms are currently under
negotiations and have given verbal commitment for affiliation.
****************************************************************
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****************************************************************
Page 19

TI=\FMG, Ltd., RULE 144, REG D DRAFT OFFERING
IM= 010P01.CPR
DA= July 31, 1986
PA= PAGES 3
SU= SUMMARY: Correspondence from Jeff Jamouneau of McNeese,
Wallace, and Nurick, in regards to the requirments and advice
to Stan Caterbone with regards to his efforts of
writing the Offering Memorandum for Financial Management
Group, Ltd., to raise the initial capital by way of a
Regulation D, Rule 144, Private Placement Offering,
registered with the Pennsylvanial Securities and
Exchange Commission.
IM= 010P02.CPR
DI= PAGE 2
IM= 010P03.CPR
DI= PAGE 3
********************************************************************
TI=\FORM D REG 144 CORRESPONDENCE
IM= 011P01.CPR
DA= August 7, 1986
PA= PAGES:
2
SU= SUMMARY: Letter from Jeff Jamouneau to Stan Caterbone
regarding filing procedures for the FMG Ltd, Regulation D, Rule
144 Offering Memorandum, filed with the Pennsylvania
Securities Commission.
IM= 011P02.CPR
DI= PAGE 2
********************************************************************
TI=\SALE OF FMG, Ltd,. STOCK
IM= 012P01.CPR
DA= August 11, 1986
PA= PAGES:
2
SU= SUMMARY: Letter from Jeff Jamnouneau to Stan Caterbone
addressing the requirements for the actual sale of the FMG, Ltd,.
stock pursuant to Section 203(d) of the Pennsylvania
Securities Act of 1972 with respect to the Pennsylvania
Securities Commission.
IM= 012P02.CPR
DI= PAGE 02
****************************************************************
Page 20

TI=\OFFERING MEMORANDUM LEGAL DOCS (PA SEC)
IM= 013P01.CPR
DA= August 19, 1986
PA= PAGES:
1
SU= SUMMARY: Letter from Stan Caterbone to Joseph Lyden, of the
Pennsylvania Securities and Exchange Commission.
****************************************************************
TI=\LEGAL FEES FOR FMG, Ltd., FORMATION
IM= 014P01.CPR
DA= August 22, 1986
PA= PAGES:
1
SU= SUMMARY: Letter for the legal fees for the set up and
formulation of FMG, Ltd., to Stan Caterbone from Tim Lanza, of
O'Day and Smith, of Lancaster PA. Invoice also includes fees
for the formation of all subsidiaries.
****************************************************************
TI=\FMG Ltd., REGISTRATION WITH PA SEC
IM= 015P01.CPR
DA= August 25, 1986
PA= PAGES:
1
SU= SUMMARY: Letter to the Commonwealth of PA, Department of
State Corporation Bureau from attorney Tim Lanza for the
registration of FMG Securities, Inc.
***************************************************************
TI=\INVOICES FOR LEGAL FEES FOR FMG FORMATION
IM= 016P01.CPR
DA= August 22, 1986
PA= PAGES:
1
SU= SUMMARY: Invoice for the legal fees for the formation of FMG
Ltd., and its subsidiaries.
***************************************************************
TI=\FMG, Ltd., IRS EMPLOYER ID WITH PENNSYLVANIA
IM= 017P01.CPR
DA= August 25, 1986
PA= PAGES:
1
Page 21

SU= SUMMARY: Copy of the application for Employer Identification
Number to the Internal Revenue Service, from attorney
Tim Lanza.
***************************************************************
TI=\REGISTERATION FOR FMG Ltd., OFFERING MEMORANDUM
IM= 018P01.CPR
DA= August 29, 1986
PA= PAGES:
8
SU= SUMMARY: The final Subscription Agreement prepared by Stan
Caterbone with the counsel of Jeff Jamouneau of McNeese
Wallace & Nurick, of Harrisburg. Stan Caterbone prepared
the Offering Memorandum and the Subscription Agreement
with Jeff Jamouneau acting as advisor.
IM= 018P02.CPR
DI= PAGE 2
IM= 018P03.CPR
DI= PAGE 3
IM= 018P04.CPR
DI= PAGE 4
IM= 018P05.CPR
DI= PAGE 5
IM= 018P06.CPR
DI= PAGE 6
IM= 018P07.CPR
DI= PAGE 7
IM= 018P08.CPR
DI= PAGE 8
***************************************************************
TI=\FMG OFFERING MEMORANDUM LEGAL CORRESPONDENCE
IM= 019P01.CPR
DA= August 29, 1986
PA= PAGES:
1
SU= SUMMARY: Letter from attorney Jeff Jamouneau to Stan
Caterbone enclosing the Subscription Agreement for the Offering
Memorandum of FMG Ltd.,.
***************************************************************
TI=\LANCASTER COUNTY BAR ASSOCIATION REPLY
IM= 020P01.CPR
Page 22

PA= PAGES:
SU= SUMMARY: This letter is the reply of the Lancaster Bar

Association as to the question of ethics if the law firm of
Shirk, Reist, Wagenseller and Shirk would formally
associate with FMG, Ltd.,. Kenelm L. Shirk, Jr., was business
associate of Stan Caterbone's whom he often would confide
business matters especially the start up of FMG, Ltd.,
IM= 020P02.CPR
DI= PAGE 2
IM= 020P03.CPR
DI= PAGE 3
IM= 020P04.CPR
DI= PAGE 4
***************************************************************
TI=\FSC COMPUTERS REQUESTS
IM= 021P01.CPR
PA= PAGES:
1
SU= SUMMARY: Letter requesting the return of computers that were
originally in the FSC broker dealer deal.
***************************************************************
TI=\FISCHER LICENSE REQUEST
IM= 022P01.CPR
DA= April 29, 1987
PA= PAGES:
1
SU= SUMMARY: Letter to Hibbard Brown regarding licensing
arrangement from Fred Fischer, a FMG, Ltd., recruit of Stan
Caterbone
***************************************************************
TI=\TUCKER RIA LETTER
IM= 022P01.CPR
DA= December 31, 1986
PA= PAGES:
1
SU= SUMMARY: Letter to Thomas Tucker regarding the operations
of the Registered Investment Advisor.
***************************************************************
TI=\JOB DESCRIPTION FOR FMG, Ltd.,
Page 23
IM=
DA=
AT=
PA=

023P01.CPR
December 4, 1986
CORRESPONDING AUDIO TRACKS:
PAGES:
1
SU= SUMMARY: Job Description of Stan Caterbone, written by Robert

Kauffman.
***************************************************************
TI=\BRAVERO LETTER
IM= 024P01.CPR
DA= January 5, 1987
PA= PAGES:
1
SU= SUMMARY: Letter to Stan Caterbone from Jerry Braver, one of
the Sattelite Offices. Letter discuss computer technologies.
***************************************************************
TI=\UMIKER WILL
IM= 025P01.CPR
DA= January 8, 1987
PA= PAGES:
2
SU= SUMMARY: Letter to Stan Caterbone from Dore Valvanes,
discussing certain strategies for the Estate Planning of Dr. William
Umiker, of which Stan Caterbone has been providing
Financial Advisory services for the past 2 years.
Dr. Umiker was the mentor for Stan Caterbone, and Stan
Caterbone was named the Tustee for his Estate, valued in
$ millions.
IM= 025P02.CPR
DI= PAGE 2
***************************************************************
TI=\FMG ADVISORY RIA
IM= 026P01.CPR
PA= PAGES:
2
SU= SUMMARY: Letter from Pual Schwartz, Acting Director, Division
of Licensing, PENNSYLVANIA SECURITIES COMMISSION. The
letter discusses the status with the applaction of
FMG Advisory, Inc., for status of a Registered
Investment Advisor.
IM= 026P02.CPR
Page 24

DI= PAGE 2
***************************************************************
TI=\ROYER LETTER OF INTENT
IM= 027P01.CPR
PA= PAGES:
1
SU= SUMMARY: A letter from Carolyn Royer to the principals, Hartlett,
Kauffman, and Caterbone. This letter was intended to
provide motivation for Kauffman and Hartlett to comit
to compensation and a position in the brokerage
department. Caroly Royer went throuth the difficult task
of passing the test for the Series #24 license, inwhich
a position and salary would follow. Of course they
lied. Carolyn Royer resigned several weeks later.
***************************************************************
TI=\SERIES #24 EXAMINATION REPORT OF C. ROYER
IM= 028P01.CPR
PA= PAGES:
1
SU= SUMMARY: Carolyn Royer's Series #24 Examination Score
Report.
***************************************************************
TI=\INSTITUTIONAL INVESTORS SOLICITATION
IM= 029P01.CPR
PA= PAGES:
2
SU= SUMMARY: Letter to Stan Caterbone from Al Dannatt, of
Institutionl Investors, of Houston TX, requesting to form a formal
business relationship for the mortgage banking business.
All Dannatt had provided a portfolio of residential,
commercial, industrial, nursing home, minihouses, hotels,
mobile home parks and ACLF facilities. The mortgage
packages ranged from $3 million to $500 million is size,
and were as much and even more competive with at least
Famrmers First Bank, Fulton Bank, and Commonwealt Bank.
IM= 28.CPR
PAGE 2
***************************************************************
Page 25

TI=\INSTITUTIONAL INVESTORS' LOAN PORTFOLIO
IM= 030P01.CPR
PA= PAGES:
1
SU= SUMMARY: Loan Portfolio and Current Rate Quotes to Stan
Caterbone from Al Dannatt of Institutional Investors. Rates were
more competative than most local lending institutions as
well as the lending limits.
***************************************************************
TI=\HIBBARD & BROWN COMPANY -- FMG, Ltd., ACQUISITION
IM= 031P01.CPR
PA= PAGES:
2
SU= SUMMARY: Letter from Robert Kauffman to Peter Hibbard of the
Broker Dealer Hibbard Brown & Co., outlining the first
draft of a proposed merger and acquisition of FMG, Ltd.,
and Hibbard Brown & Company. "I have discussed our visit
with the other two partners and the initial reactions
have been favorable".
IM= 031P02.CPR
DI= PAGE 2
***************************************************************
TI=\FMG, Ltd., BOARD MINUTES OF 01/26/87
IM= 032P01.CPR
PA= PAGES:
2
SU= SUMMARY: Board Meeting of January 26, 1987. The Board votes
to add 2 additional Board of Directors. Alan Loss and
Bob Long are selected.
IM= 032P02.CPR
ID= PAGE 2
***************************************************************
TI=\HIGH ASSOCIATES Ltd. REQUEST FOR FINANCING
IM= 033P01.CPR
DA= February 3, 1987
PA= PAGES:
1
SU= SUMMARY: At the request of Bob Long, Stan Caterbone writes
Page 26

to Tom Kyle, of High Associates, whom is a Board of
Director of American Helix, which Stan Caterbone is
partners in the "Digital" technoloyies industry. Tom
Kyle had requested information of financing capabilites.
High Associates is the largest real estate developer in
Lancaster County.
***************************************************************
TI=\ROYER -- FMG, Ltd., CONFLICT
IM= 034P01.CPR
PA= PAGES:
1
SU= SUMMARY: Continuing efforts by Carolyn Royer to only what she
was promised by Kauffman and Hartlett.
***************************************************************
IM= 035P01.CPR
PA= PAGES:
2
SU= SUMMARY: Robert Kauffman drafts a very "agressive" letter to
Carolyn Royer, and asks for input. Letter was
embarassing to Stan Caterbone.
FSC terminates contract with Kauffman. Kauffman had
been collecting compensation from both FMG, Ltd., and
FSC of Atlanta. Stan Caterbone had urged Kauffman to
communicate to FSC in as early as April of 1986, that
FMG, Ltd., would eventually terminate its Broker Dealer
contract with FSC. Kauffman never did in order for $$$.
IM= 035P02.CPR
DI= PAGE 2
************************************************************
TI=\SHENDEL REQUEST FOR FINANCING
IM= 036P01.CPR
PA= PAGES:
1
SU= SUMMARY: A letter requesting financing for several projects.
Leonard Shendell is an investment banker, with several
different firms, located in Dressher PA. A few projects
were seriously considered. Esbestos contaminiation
had ruined one deal.
*************************************************************
Page 27

IM= 037P01.CPR
PA= PAGES:
2
SU= SUMMARY: Mr. Peter Hibbard is introduced by Robert Kauffman
as a representative of Hibbard Brown, a broker dealer from
Washington, D.C. Kauffman aggressively pursues a merger
of FMG, Ltd., with Hibbard Brown. Stan Caterbone is
skeptical of the deal. After decisions are made to
accept deal, Stan Caterbone is dissatisfied with the
performace and administration, visits with Hibbard Brown
and demands the deal is rescinded. Stan Caterbone then
flies to Atlanta, to do a deal with Koegler Morgan.
IM= 037P02.CPR
DI= PAGE 2
************************************************************
TI=\FISHER/SPONOUGLE CO. REQUEST FOR FINANCING
IM= 038P01.CPR
PA= PAGES:
1
SU= SUMMARY: Martin Sponaugle of Fisher, Sponaugle Investment
Group, which is the owner and landlord for 1755 Oregon Pike,
headquarters for FMG, Ltd.,. Marty Sponaugle had
requested finanacing for several projects.
************************************************************
TI=\BARRY SCHUTTLER RELIGIOUS ALLEGATIONS
IM= 039P01.CPR
PA= PAGES:
1
SU= SUMMARY: Letter from Audrey, the administrative assistant for
Barry Schuttler, of Barry L. Schuttler Associates, a
sattelitte office of FMG, Ltd.,. Audrey will later disclose to Stan
Caterbone that Pete Hibbard is also a "Born Again" Christian, along
with To Turner, who as oprating the largest financial services district
for IDS/America Express, was reprimanded, and eventually left to join
FMG, Ltd. This information gave Stan Caterbone the real reason behind
the Hibbard Brown Deal.
************************************************************
Page 28

TI=\FMG, Ltd., ADVERTISEMENT IN LNP
IM= 040P01.CPR
PA= PAGES:
1
SU= SUMMARY: Full page advertisement for the Lancaster New Era,
and the Lancaster Intelligencer Journal. Displays
portrait of FMG, Ltd., professionals.
************************************************************
TI=\FMG ADVISORY PA SEC RIA APP
IM= 041P01.CPR
PA= PAGES:
3
SU= SUMMARY: Letter from Paul Schwatz, Acting Director, Division
of Licensing of the Pennsylvania Securities Commission.
The letter acknowledges reciept of the application of
FMG Advisory, Inc. for the status of Registered
Investment Advisor, as submitted and prepared by Stan
Caterbone.
IM= 041P02.CPR
DI= PAGE 2
IM= 041P03.CPR
DI= PAGE 3
*****************************************************************
TI=\OWNEN KUGEL AND FBI INVESTIGATION
IM= 042P01.CPR
PA= PAGES:
1
SU= SUMMARY: Article in the Lancaster New Era regarding allegations
of improprieties of the business activities of Owen
Kugel Associates. None of the charges were substantiated
and there was question regarding the merits of any
investigations. FBI individuals have apparently been
reprimanded for starting the investigation.
The investigation eventually lead to a loss of investor
confidence in Kugel, which in turned financial troubles.
************************************************************
TI=\KUGEL FINANCE REQUEST
IM= 043P01.CPR
DA= March 2, 1987
Page 29

AT= CORRESPONDING AUDIO TRACKS: 01/02/
PA= PAGES:
1
SU= SUMMARY: Letter from Owen Kugel to Stan Caterbone
requesting financing for several projects estimated at $10 million
in loan value. Owen Kugel was requesting both
debt and equity financing.
*************************************************************
TI=\FMG, Ltd., NEWS LETTER RE: TURNER
IM= 044P01.CPR
DA= March 24, 1987
PA= PAGES:
2
SU= SUMMARY: FMG Newsletter that included Robert Kauffman
announcing that C.T. Turner (Tom) has joined FMG, Ltd., Tom Turner
operated one of the biggest branches for IDS/American
Express in Minneapolis MN. Tom Turner had legal problems
due to his religious overtones while conducting business.
Kuaffman also announces that FMG and Hibbard Brown & Co.
have reached agreement on the pending merger.
Coincidentely, Robert Kauffman, Peter Hibbard, and Tom
Turner are all professed "Born Again" Christians.
IM= 044P02.CPR
DI= PAGE 2
*****************************************************************
IM= 045P01.CPR
DA= March 26, 1987
PA= PAGES:
02
SU= SUMMARY: Board of Directors meeting discussing Hibbard
Brown deal. Board agrees to meet on a regular monthly basis
to facilitate the reorganization of FMG, Ltd.,. which
Kauffman pursued in order to get equity and control to
both Shcuttler, Hibbard, and Turner, his "Born Again"
accomplices. Meetings were scheduled with Jeff Jamouneau
by Stan Caterbone to discuss the reorganization.
IM= 045P02.CPR
DI= PAGE 2
************************************************************
TI=\FSC VS. KAUFFMAN CONFLICT
IM= 046P01.CPR
DA= March 26, 1987
Page 30

PA= PAGES:
2
SU= SUMMARY: Formal letter from John B. Keeble, of Financial
Service Corporation (FSC) citing the contractual
and fiduciary responsibilities of Robert Kauffman with
respect to the recent request to terminate the licensing
agreements of FMG, Ltd., and its registered
representatives and to transfer the respective license
agreements with Pete Hibbard's Hibbard Brown and Company.
FSC will take legal action against Kauffman and FMG, Ltd,
if not resolved by April 1st, 1987.
IM= 046P02.CPR
DI= PAGE 2
************************************************************
TI=\J. KEEBLE (FSC) LETTER TO ALL REPS
IM= 047P01.CPR
DA= March 26, 1987
PA= PAGES:
01
SU= SUMMARY: A letter to all licensed representatives of FMG, Ltd.,
from John B. Keeble, Pres, Don Aultman, VP, and Steve
Franklin, VP of FSC, outlining legal implications of
Robert Kauffman's attempt at terminating his contract
and transferring all Registered Representatives Licensed
Agreements to Hibbard Brown, Broker Dealer. John Keeble
also enclosed the recent letter sent to Kuaffman with
regards to legal action, fiduciary responsibility, and
contractual obligations.
************************************************************
TI=\SEAPORT VILLAGE SYNOPSIS FOR POWER STATION
IM= 048P01.CPR
DA= March 28, 1987
AT= CORRESPONDING AUDIO TRACKS: 06/
PA= PAGES:
1
SU= SUMMARY: A description of the proposed real estate project by
Tony Bongiovi and Bob Walters of Power Station Studios.
Tony had requested that Stan Caterbone consider
financing alternatives for the project, which included
the referbishment and development of an entertainment
pier along the Wildwood Boardwalk, in New Jersey.
************************************************************
TI=\KUAFFMAN LETTER TO REPS RE: FSC
Page 31
IM=
DA=
AT=
PA=

049P01.CPR
March 30, 1987
CORRESPONDING AUDIO TRACKS: 01/02/04/07/08
PAGES:
1
SU= SUMMARY: A letter from Robert Kauffman to all Licensed Reps

of FSC, and affiliated with FMG, defending the
allegations of John Keeble, and FSC, and alleviating
any uncertainties with regards to transferring to
Hibbard Brown and Company.
************************************************************
TI=\KUFFMAN LETTER TO J. KEEBLE OF FSC
IM= 050P01.CPR
DA= March 30, 1987
PA= PAGES:
1
SU= SUMMARY: A letter from Robert Kuaffman to John Keeble of
FSC, outlining his defense against FSC's legal action
concerning Robert Kauffman's contractual obligations and
his fiduciary responsiblities.
Robert Kuaffman urges that FSC restrain from any course
of legal action, because only legal representatives would
make money.
************************************************************
TI=\CLIENT COMPLAINT VS. BOB LONG
IM= 051P01.CPR
DA= April 9, 1987
PA= PAGES:
1
SU= SUMMARY: A formal complaint lodged against Robert Long,
accountant and Board member of FMG, Ltd., by a dissatisfied client.
Bradley R. Singer of Conestoga Fuels complains about the
work performed by Robert Long, and alleges the
performance of FMG, Ltd., in delivering it's stated
products and services.
************************************************************
TI=\SONY STATISTICS
DA= April 14, 1987
AT= CORRESPONDING AUDIO TRACKS:01/02/03/04/05/06/07/08
SU= STATISTICS FOR SONY DEAL
Page 32

Power Station
l.
Bon Jovi - Tony's creation

a.
b.
1% - $1 Million in l987 in Revenues
Format
Mixing
Sold 9 million albums in 6 months

2. Power Station - High Tech Award - Last 4 Years
Best in World By Peers!
3.
4 - 5 Grammys in 1987 Recorded there Steve Winwood
Others: Jagger,, B. Joel, Springsteen, Diana Ross, Madonna,

J. Lennon, on and on.
4.
Tony - Multi Track Recording

Defied Theory
Designed Sound - Voyeger
Produced Star Wars Album - Mixed
5.
II.
French Lick - MTV may sign

Free Promotion
Technology
1.
First Video, film, tv in digital.
2.
Kodak and Mitsubish - Not till end of Decade
3.
Dolby - Sony/PSDMS - $10,000 per license to any tv, film,

video, etc.,
4.
Only mix board that will mix albums/video's

Sell to all recording and film studios $300,000 - $500,000 per
console.
5.
Sony spends 9% of gross revenue on R & D

9% of billions
6.
All first for full entertainment
2 = $l80,000,000
Put Sony 5 years ahead of strategic plan

Disc players - Only 23% of consumers currently own a disc
player.
Page 33

First time to hear for how many?
III. Film/Video
l.
23,000 theaters to sell system
2.
First will sell movie and video

Add French Lick
3.
Top Gun - sold 9 million @ $30.00 - $60.00 per video

$270,000,000 +
4.
Horror International Film $20 - $60,000,000

Pay TV, Cable, TV -- ?
IV.
V.
VI.
Commercial - 180 Sec Commentary

Sony - $4,000,000 - $8,000,000 for commercial
Visa Demonstration $2 Million - $6 Million
Pepsi Paid $8,000,000 60 Second in front of "Top Gun" video.
Merchandise - Private Label
Power Station Beach Line
In movie, free by original designer and owner - "Hang Ten" swim
wear Power Station Electronics Line/Sony
Best recording in world - is it good?
Beach Accessories
Promotion in movie, video, TV
Sell all of above
Video - Mail Order, Stores
Sony
l.
a.
b.
Needs help
Low profits
Beta Bust
2.
Best name electronics Manufacture
3.
Film and video distribution (new)
4.
a.
b.
c.
Willing to work together

Share tech
Joint venture
Horizontal distribution
5.
Horror Elements and P/S name already international
Deal would involve:

Page 34
l.
2.
3.
4.

Retail electronics division
Professional electronic
Film distribution
Video distribution
Star Wars - "STAR WARS BY LUCASFILM, Ltd., -- $2 Billion in 10 years

30% - 50% = $600,000,000
Tony said 50/50
All costs - $4 Million
New - Film studio?/with Sony
Deal worth 100,000,000 Now??
Would Kodak or Mitsubish like deal?
Will Sony let this deal go to competition?
No - Beta BUST!
PERFECT ENDING:
Profits and Respect
Creation - 4/11/87
11:00 - 1:00 a.m.
Stan 98%
1% Scott - Call Ron Gell
Research Sony
1% Marcia - Sony give 4 million
Raise 15 Million
Call Head of video distribution
Merchandising - Hang Ten Off/Kodak
/Sony Difference test visa add in
**************************************************************
TI=\KAUFFMAN CONGRATS TO S. CATERBONE
IM= 052P01.CPR
DA= April 13, 1987
AT= CORRESPONDING AUDIO TRACKS: 01/02/04/
PA= PAGES:
1
SU= SUMMARY: Congratulations letter from Robert Kauffman to Stan
Caterbone on his commissions of $86,466.11 for the
fiscal year ended March 30, 1987. FMG, Ltd, had
accumulated $815,000 om Gross Commission Income (GCI)
for the first quarter, which can be extrapolated to
approximately $3,260,000 in annualized commissions.
Historical statistics indicate that financial services
companies are often valued at One (1) times GCI or
$3,260,000 by Industry standards. This would value the
250,000 of stock at $13.00 per share.
************************************************************
Page 35

TI=\BOARD INVITATION TO SATTELITE DIRECTORS
IM= 053P01.CPR
DA= April 14, 1987
PA= PAGES:
1
SU= SUMMARY: Letter from Robert Kauffman to the Sattelite affiliates
of FMG, Ltd., inviting them to the Board of Directors
Meeting to be held at Dempsey's Restaurant, Lancaster, on
May 5, 1987. Agenda includes update of FMG, Ltd.,
Profit Participation Plan, Restructure of FMG, Ltd, to
include national expansion, and private syndications.
************************************************************
TI=\FMG ADVISORY BILLING
IM= 054P01.CPR
DA= April 21, 1987
PA= PAGES:
1
SU= SUMMARY: Memo to all affiliated persons of FMG, Ltd,. regarding
the billing procedures for the Registered Investment
Advisor, FMG Advisory, Inc., which Stan Caterbone is
President, and for FMG Accounting, of which Stan
Caterbone is responsible for the daily operations.
************************************************************
TI=\FMG, Ltd., NEWLETTER 04/14/87
IM= 055P01.CPR
DA= April 14, 1987
PA= PAGES:
3
SU= SUMMARY: A FMG, Ltd, Newsletter to all affiliates of FMG, Ltd.,
Stan Caterbone updates his activities and the status
of the following: Insurance carriers and business;
Registered Investment Advisor, Retirement Planning
Computer Analysis; Bennet Williams Real Estate Project
and Syndication; Mortgage Banking Activities and the
Availability of Financing and Loan Packages with
a range of $3 million to $500 million and competive rates
IM= 055P02.CPR
DI= PAGE 2
IM= 055P03.CPR
DI= PAGE 3
************************************************************
TI=\FMG, Ltd.,
BOARD MINUTES OF 04/16/87

Page 36
IM=
DA=
AT=
PA=

056P01.CPR
April 16, 1987
PAGES:
2
SU= SUMMARY: Board of Directors Meeting held at the offices of

McNeese, Wallace, & Nurick, Harrisburg PA. The agenda
was the restructure and reorganization of FMG, Ltd,.
with specific regards to Pete Hibbard, Barry Schuttler,
and Tom Turner ("BORN AGAIN").
Shareholder vote within next 30 days for the following:
Formation of FMG National Inc.,; Directors Liability;
Exemption of By Laws of Above; Closing Current Offering
Memorandum; a 5:1 Stock Split.
01
IM= 056P02.CPR
DI= PAGE 2
************************************************************
TI=\USEPPA PROJECT CORRESPONDENCE
IM= 058P01.CPR
DA= April 29, 1987
AT= CORRESPONDING AUDIO TRACKS: 01/02/04//07/08
PA= PAGES:
1
SU= SUMMARY: Letter from John Klemish regarding real estate
investment on Useppa Island, Pinnland, FL.
************************************************************
TI=\MAY 2, 1987 FMG, Ltd., MEMO TRANSCRIPT BY S. CATERBONE
DA= MAY 2, 1987
SU= {THE FOLLOWING IS THE AUTHENTIC TRANSCRIPT AS TRANSCRIPED
BY LYNN KREIDER OF FMG, Ltd., ON OR ABOUT MAY 10, 1987.}
The purpose of this document is to recollect all activities that I've

been involved within Financial Planning and the formation of Financial
Management Group, to verify and document some of the activities
that I've been involved in to date.
I'm afraid that as we go further and further there will be a need for
such information especially with what has happened this past week with
our corporate officers and board. First I would like to begin back in the
very beginning so that the full scope of our activities seem to fit into
one place and also so that some of the issues that have come up
Page 37

are tied into what has happened up to this point.
First of all, I started in the Financial Planning Industry back in 1982.
After getting out of the contracting business I took six weeks and
traveled across the country and came back and decided to get into
the financial services industry. Being that several relatives have had
dealings with IDS, Investors Diversified Services, I called the local
branch in Rohrerstown upon finding the manager named Robert
Kauffman. Bob spent some time with me, decided he wished to hire
me, and that began the process.
I was actually licensed in 1982 for securities and life and was put
under the management of Bob Kauffman. Shortly thereafter, I would say
probably in June or July, Bob was promoted and took a division in
Tampa, Florida. Myself and three or four other individuals who were
under management decided that we wanted to form a group
together so we talked to another district manager, Steven H. and decided
that, if he would allow, we would like to put an office together with him.
At this time we did not have an office and he was working out of a
small office in Millersville. The people who were with me was myself, Mike
Hartlett and Alan Loss.
The three of us were very, very large producers, especially Mike and
Alan. The three of us were probably larger than Steve's district at
that time, so at that point we located an office at 255 Butler Avenue, we
walked under Steven H. district which increased his income by at
least 30% to 40% upon that transaction.
After being involved in the business I decided that financial planning
should be more objective and fee based, so I became one of the
larger fee producers using fees as well as commission income. At about
the same time, I became involved in the International Association of
Financial Planners. At that time the local chapter was just being
formed and I volunteered my services to help on the board. Members of the
board, at that time, was just being formed and headed by John
Herr.
I became executive vice president and virtually helped run the
chapter and helped build it to its largest membership. That gave me the
opportunity to meet other people, broaden my horizons and
education as far as the financial planning industry and just
how the independent planners fit into the stream of the industry. I
had quite a bit of activity and did alot for the local chapter and became
very involved.
Over the next several years I made a very good living. I was never
a very big producer, although one of the bigger ones in the Harrisburg
Page 38

division. But I was not the biggest, but the premier fee producer for
the division and was one of the leading in the country at that time.
I shortly became knowledgeable of the other products available in
the financial services industry and learned very quickly that it was
virtually impossible to have one company manufacture and produce
competitive products across the line. At this time I was setting up
a dinner meeting for the IFP that was going to showcase Alexandra
Armstrong who was one of the premier planners in the country. She
was very visible and very widely known.
I set up a dinner meeting for her which attracted close of one
hundred professionals and other people to attend. This was four or five times
larger that any other meeting the chapter had ever had. After the
meeting I was involved in a discussion with Alex regarding the
financial planning industry and my aspirations of what was outside of a
propriety environment. I told her that I was thinking of making a move and
asked her if she had any suggestions of who to speak to. At this point in
time, we were all in Butler Avenue and Bob Kauffman was in
Georgia, running a division of IDS back there. He, at this time, had become
one of the largest divisional managers and had shown very high
productive recruiting skills. He was running one the largest shops in the
South
East and was becoming very profitable for IDS.
Alex suggested that I call a gentlemen by the name of John Keeble
who was then president of Financial Services Corp. a broker/dealer
based in Atlanta, Georgia. At this time Bob Kauffman was probably, as
unfamiliar if not more unfamiliar, of the independent environment
available to the Financial Services Industry. Specifically Financial
Planners.
I phoned Bob and told him that I was going to look and see what
else was "out there." Before this time, a couple months prior, I attended
a career conference in Florida with IDS. At one point I was in a room
with Bob Kauffman and Tom Turner, who was the biggest
divisional manager at this time with IDS. I began to discuss my
dissatisfaction with the company and the way that they operate and
I suggested to them that it probably would not be too difficult to
duplicate an organization instead of being built around a proprietary
system built solely around a non-proprietary product. At the time they
both looked at me and I don't remember if they laughed, but the idea
really didn't really interest them, and it just rolled off their shoulders.
Right after this meeting is when I had the dinner meeting with Alex and I
set up the meeting in Atlanta. As I usually did, I always looked at Bob
Kauffman as my mentor.
He virtually took me off the streets and showed me a way to
Page 39

produce money in a way that I never dreamed I could produce. I always
respected Bob as a very good salesman, seeming to have a very
high financial intellect and I looked up to him as he taught me alot. So
I got on the phone and told him I was going to visit an independent
planner in Atlanta. At this time, Bob was becoming dissatisfied with the
management of IDS and was not very happy with the way they were
using him to build areas. When the areas would become profitable
to him they would move him to another distressed area to be built up.
So he was doing all the work and IDS was making all the money
because they would put in a manager for less money and so on and
so forth.
Bob then told me that he may be willing to go into the meeting with
me under the assumption that I did not tell them who he was or who he
was with. I called John Keeble and told him I wanted to come down
and visit him, being referred by Alex and he was very nice over the
phone, giving me a cordial invitation to come down and actually had
me set up the meeting with Ray Smith who was one of the sales
managers. I set up a two day meeting with myself and this
anonymous person, Bob Kauffman. We spent two days at FSC and what
essentially happened is that they became infatuated with Bob's recruiting
skills. On the spot they offered Bob a position within the company as far
as recruiting and head of sales management of FSC.
I resigned from
IDS January 1985. Bob remained at IDS and from October to March was
negotiating his position and pay and his compensation with FSC.
By March he actually decided to resign from IDS and he was absorbed
into the corporate structure of FSC. January 1st I resigned from IDS.
I was upstairs with Mike Hartlett, sharing an office space
and the rest of district with Alan Loss was still downstairs.
At this time, I began to build my independent practice of Financial
Planning. Basically I took 95% of my clients from IDS and began
working with them. Bob began working in the national recruiting for
FSC and started attracting IDS people to FSC.
By the Fall of 1985 I had became disappointed with my business life,
not learning enough, lonely being independent and I became
frustrated. I knew that no one in Lancaster was doing a very high quality
service regarding Financial Planning and Financial Services. To me,
Lancaster seemed to be a highly attractive market with alot of wealth
being spread out among alot of different players. No one was being
creative regarding their efforts it was just three or four brokerage
houses, insurance agents, banks and independent planners but no
one had a very strong position or dominance in the financial services
industry.
I visited with Bob Kauffman in the Fall of 1985 as I usually did every
couple months and told him I wished to do something else. At that
Page 40

time he asked me if I wanted to come down to Atlanta and help him
work on the concept of company owned shops. When I was down
there, he mentioned several positions in the corporation that I may
be interested in and he set up a meeting with me and Steve Franklin.
Steve apparently needed someone to manage his national sales
office so being down there I spoke to him, just to verify what was
available.
At this meeting, Steve Franklin more of less indicated that I was a
"burned out salesman" who was just looking for a place to go.
Nothing ever happened and I left the meeting with very little respect for
Steve Franklin.
Bob offered me a position within his company owned store, writing
cases doing plans, doing some other things. That was early
October. For the next three or four weeks I prepared myself, reluctantly, for
the transition and moved to Atlanta and tried to maintain clients up here
as well, and pursue whatever Bob was doing down in Atlanta. As
time went on I felt I really didn't wish to move away from the area and
that maybe the opportunity down there wasn't what I thought it was, or
wasn't what Bob said it was.
On November 27 or 28 of 1985, I had a meeting with Bob Kauffman and
Mike Hartlett at Morton's Restaurant on the Rohrerstown Road,
Lancaster, PA. The purpose of the meeting was to find out if we
could collectively put together something in Lancaster with regards to
financial planning. I would say that meeting was more of an effort on
my part than anyone especially Mike Hartlett. Mike was, at this time,
also independent, left IDS and followed me to FSC along with Bob.
The meeting was on the morning at 9:00 a.m. and we discussed
what options we had as far as putting something together in
Lancaster.
I guess the basic reason for the meeting was to see if Mike Hartlett
wished to do something together with us. At this time I was
operating my practice, Mike was operating his practice, and the only thing
we had in common was a reception room adjoining our offices. At
this time Bob saw that if we could put something together in Lancaster
he could probably fulfill some of his recruiting requirements, giving him
a place to actually recruit people to rather than using FSC in Atlanta.
So that began the process of putting together a shop in Lancaster
and Central PA. I began to recruit from that point forward into our so called
planning
firm. At this time the planning firm was going to be comprised of
financial planners. Some of the first people that
I talked to was Mona Rishel, Dick Sherbahn, and Bob Long. I spoke
Page 41

to other planners about joining our firm and then I got the idea of
adding other professionals mainly legal, accounting,
real estate and maybe insurance. It was then that I got the idea for
the one stop financial firm. To me it seemed apparent that it was
important to have all the individuals working together collectively to manage
one financial affairs. It didn't seem that difficult to accomplish that if you
had the right individuals willing to take the risk of attempting such a
project and who had the clientele where they didn't have to rely on
attracting new clientele.
Well, one thing led to another and we soon began to recruit and
attract new and sizable group of individuals. I probably was responsible for
recruiting 90% of the local people and outside people, Mike was
working with Rick Volpe in Philadelphia who he worked with at IDS,
and a host of others. The initial core was myself, Mike, Mona, Dick
Sherbahn. At this time I ran into Scott Robertson at the Three Mile
House who was working with Asset Management. I expressed the
idea to him and he became interested and became one of our
people. I also talked to Carolyn Royer who was with Pru Bache and
she was interested in joining. By February we had a fairly large
group of people who were willing to commit. First thing we had to do was
find facilities and Mike found the place available at the Oregon Pike
location which was just under construction. At first we were looking
for 2,000 square feet to house four or five individuals. At this time I
talked to Tim Lanza, people at -----------the legal firm, and Danny Berger as
far as doing something with real estate. It was supposed to be
an operation financed and supported by FSC. From December until
May FSC was promising fund to finance the operation. We needed
start up funds for furniture, computer systems, salaries for myself
and Mike for managing the operation. What happened during this time
was that FSC was constantly promising us financing and we had yet
to receive any actual money and the invoices submitted were never
paid by FSC.
Bob Kauffman was the liaison and apparently was being directed by
Steve Franklin and John Keeble. From what I have learned over the
past several years was that they never really intended to finance the
operation but they were stringing us along and using us to recruit
other people to the operation. After we recruited ten or more people
it became apparent that Mike or myself did not have the managing
skills required to manage such an operation. We also learned we lost
our financial backing, so we had to figure out what to do with
financing.
At this time we decided to raise the capital ourselves, finance the
operation ourselves with equity we raised through the planners. And
essentially we learned that no one in the industry, or very few
actually own their own business but are only a distribution for a financial
Page 42

product.
We all have seen broker/dealers being bought and sold for very
sizable amounts of money, usually in the vicinity of $l of equity for
$l of gross commission income. We began to see that we were seeing
anywhere from $l million of gross commission income per year with the
group that we had. In the group was Ken Ray and some very creative and
talented people.
Throughout our meetings and discussions which were very long,
durable and tiresome. From December to May I probably spent
every other evening with Bob in Atlanta trying to put this deal together.
Let me go over a couple of other things that had happened up to
that time that I'd like mentioned in this document, before I forget. Back
in the summer of l985, I was contacted by John Philips from Blue Ball
National Bank. Because of my visibility with the local chapter of the
IFP John wanted to call me and look at the options of Blue Ball
National Bank become involved in Financial Planning. John called a meeting
with me and I believe he was looking for someone to head a
Financial department with inside Blue Ball National Bank or contract
with someone outside. I had l-l/2 hour with John and his
subordinate, whom I can't remember his name, I believe it was Joe. He was the
vice president of the trust department, I believe. Anyway after the
meeting they did not have the faith or the confidence that I was the
right person or they didn't believe that this was really what they
wanted to do. But I have never heard from them since.
Fall of l985, before our initial meeting, after I decided that I was not
going g to relocate in Atlanta, I began to look for other options in
Lancaster. One of those were that a couple people put me in touch
with several banks. One was Joe S. with Commonwealth National
Bank and another was Meridian Bank. Both of those individuals
received phone calls from people I did business with stating that I was
looking for something and asking that they give me an interview. None of
them would even give me an interview. I received a letter from
Commonwealth stating that they had no positions open at this time,
but they would keep my name on file. From Meridian, I don't believe I
even received a letter.
This is one of the reasons that I don't have very much respect for
banks, or people who work in banks. I don't wish to dwell into this
subject, but because of several of these episodes I just don't have
much respect for bankers, or banks what so ever.
During this time that I was looking for something to do, I had a
meeting with Owen K. Owen K. was looking for someone to raise his equity
for his rehab projects and his syndications. I had one meeting with
Page 43

Owen and one with Ed Pontius and apparently they hired someone who
essentially what happened is that Owen ran into alot of trouble and
a few months ago I was given Owen's name and he wanted me to
raise both debt and equity for him. Whereas one year ago he wouldn't
even continue any conversations with me. I believe this gives you an
indication that a lot of the people in this community are very close
minded and narrow minded and unless you are a member of the
Country Club or the Hamilton Club, or unless you come from a
family of wealth, you don't receive very much attention or consideration
and you are really just another person on the street. Most of the people
in this community whom I am referring to do not have the business
savy to be able to detect opportunity when they see it.
I would like to talk about the division of labor between me, Mike and
Bob before I get to far into this. First of all, I was probably the
mediator or negotiator with putting the deal together. I was the middle man.
I was in touch with Bob and Mike and those two were not in very
close communication with each other. I was also giving Bob the
conceptional outline for the project and he was in Atlanta finding the
details, such as financial planning software. What I soon learned
was that because of Bob's management capabilities and because he has
been in management for so very long he really didn't have the
technological expertise about the business. His expertise came from
other people so it was always second and third hand and essentially
what happened with alot of the issues I had to go back and retrace
and research myself trying to get the accurate information as it was
second and third hand before it got to Bob Kauffman's hands.
The division of labor was that Bob was to be the president of the
organization - he was to be the manager. Mike was going to be the
chief financial officer, and help with a little recruiting and help with
the staff. I was going to help negotiate, recruit - I guess I was intended
to be alot of things. However, I can't remember precisely what at this
time, but I virtually had my hands in all area. One of the things that
I recognized early on was the necessity to have Bob Kauffman
actually come here and manage. When we started, Bob was supposed to
stay in Atlanta but when we started to get into substantial size, I would
not or could manage and I don't believe Mike could. The only way I
would do the deal is if Bob came up here and managed. Bob was going
to be president and in the negotiations it was very difficult because
both Bob and Mike didn't want the other getting more than
themselves.
I was always in the middle always giving more than getting and what
ended up is for Bob to come up here he had to have more; he had
to be president. With three people involved, I agreed on this because
to get three people to agree on issues is almost impossible. You need
one person to make decisions, and we decided to allow Bob to have
Page 44

this capability.
Bob was going to receive 60,000 shares, I was to receive 40,000 shares
and Mike was to receive 40,000. Also, Mike and I were to receive
$3,000 per month and Bob $5,000 per month. Bob and I had a deal
as I did not believe he should have more of the company than
I because I put it together. We had an agreement whereby I could
buy 10,000 shares of his 20,000 at anytime at cost so we would both
have 50,000 shares. I had papers drawn up to that, however, when we
began to have problems, I left things drop by the wayside.
Back in February 1986, I became good friends with Mary Lynn
DiPaolo, Kevin's sister and Mike's wife. We were always good friends, but
back then when Kevin left, we became very close because I spent alot of
time with them. Mary Lynn was at the time, 30 years old with three
children, and she was always very tied down with the kids, basically a
housewife. She never really had a job, never worked. It was hard
for her because most of her other friends were out working and had
careers. I asked her if she would like to help me out for a few hours
a week doing general clerical and typing. She was very excited. I
thought it was a chance for me to get some things done and I liked
Mary Lynn alot and we got along and I thought it was a chance for
me to get a few extra things done.
I took her on in February and before too long she was working 30
hours a week. She had a babysitter lined up for the kids, and it was
very encouraging for me to see her do this because it gave her the
confidence for the first time that she could do something other than
just have children. She was having a great time and I was having a
great time and we enjoyed working with each other. At that
time, Bob invited Mike and I down to the annual conference in
Tucson, Arizona and with the conference arrangements we were allowed to
take someone, such as your spouse. I asked Mary Lynn if she wanted to
go and I don't believe she was ever on a plane before and she
asked Mike and he said it would be good for her to meet some of these
people and get involved with a career. We ended up down at Tucson
and that was in April 2 and we spent four or five days there.
Upon meeting Bob I told him I was bringing Mary Lynn out and I
knew from the start that this was a sore spot. First of all she was
married and he couldn't understand what she was doing out there
with me. Second of all he didn't appreciate the whole situation when he
met her he said something to the effect that she looked very young.
After the second day we were all good friends and she was getting
along very well with Bob and Pam. In fact, Pam confided things in her
that I know Pam never told anyone. It looked as though they liked,
or at least pretended to like Mary Lynn and so anyway we all had a
Page 45

good time. Bob, myself, and Mike spent most of our time in individual
private meetings trying to put this deal together and work out the
details especially with FSC. I think it was back at this time we realized that
Bob was probably going to resign from management and commit and
come up to Lancaster. I think one of the reasons why Mary Lynn
and I became very close was that she reminded me so much of my
mother in the way that she handled her kids, family and I became
infatuated with that. I liked her alot. What happened was that Mike
and Bob resented the fact that we had so much fun while we
worked. We got work done, but we went out to lunch for an hour or
so and we really enjoyed things. To them that had no place in
business. For me, as long as I got my work done, I felt
better about my work and it worked out for the best. This was a
problem and will come up later.
During the Spring of 1986 when we were putting this together I had
the opportunity to move across the hall and get additional space from
another tenant. I was going to sub-let. I did this so it would give
Mike and I additional space and give operations more space so we could
get additional people before the people was done. I moved into 12 by
18 office with reception room and I had 3 or 4 additional offices.
Nancy was working for the tenant that I was subletting and she didn't
have a job and she asked me if there was anything she could do.
Mike wanted to hire her and I said let's just try it part time with no
commitments on either side to do anything permanent when we
move in and she began part time. So we now had Mary Lynn, Nancy and
Nancy A. That was the beginning of the staff problems. The staff
was always going to have staff problems in the beginning and I can't
exaggerate the problems that we had. We had so many different
personalities, three different principals, trying to give their input. So
far as the staff was concerned, mine never counted at all. Its funny,
they always considered my input for everything else, but when it came to
staff - no way, hands off. I resented this because first
of all I brought Mary Lynn in and second of all I think I had a better
vision as far as the people than Mike did and that will come out in the
future.
Mike wanted to hire Nancy M. as office manager and I didn't think she
had the qualities to do such a job and I wanted them to interview
Barbara Kinzer. Barbara was a teacher of mine back in high school,
teaching business, typing, clerical, later going on to work at Watt
and Shand in employee benefits. So it just seemed to be that she had
some of the qualities necessary to do a good job. They interviewed
her and they didn't like her because I brought her to the table. They
ended up employing Nancy as office manager. That is going to
have alot of problems.
Page 46

I believe Nancy could have been a good employee in the right
situation, but they apparently didn't see what they should have - that they
weren't organized enough to have an office manager. I suggested early on
that we not have one and that Mike do it himself rather than us
having an additional layer, not necessary. As far as the staff are concerned,
I wish to finish up the story on the staff all at one time.
It was understood that none of us were to have our own personal
secretaries which meant Mary Lynn was not going to work for me
and Nancy A. was not going to work for Mike. I didn't agree with that,
but they were dead set against having Mary Lynn involved. Part of this
was because Mary Lynn meant so much to me and they saw that as
competition in a certain way. Mary Lynn's personality is very
outgoing, a very verbal type person who is very personable and they didn't
like that.
It was to be understood that we were not to have our own girls.
We moved into the building, they would not allow Mary Lynn to be
back in my section, however, Nancy A.'s desk was right smack up
against Mike's door. This started all the problems with Mary Lynn.
She saw that and she wished to work for me, and they were not
tremendous impact on the relationship between me, Mike and Bob.
This was the straw that broke the camels back as far as our
relationship was concerned. Ever since that happened we stopped
communicating.
That was the first move in trying to rescind my input and my control
so far as the company was concerned. As far as the staff was
concerned they had a feeling that the staff should be treated as dirt and made
this understood many times to me - this is against all my philosophy of
life.
For months, because of this attitude, there were problems with the
staff. It was because of this that the staff didn't respect them, and
it was just a mess for months.
During June, July and August, Bob was still down in Atlanta and I
was doing most of the work in Lancaster. From January until January I
took one day off for Memorial Day, one day for July 4th, one day for
Labor Day and one day for Thanksgiving. Mike Hartlett took off two of
three weeks, leaving me to tend the shop. I was always the one doing
all the work, recruiting, stock offering,labor matters, drew up all the
contracts, drew up the offering memorandum with the help of the
attorney. It was funny that I was the only one raising the money probably 80% of the funds. I was the only one of the principals who
had outsiders investing in the company. The most they did; Bob
Kauffman raised $5,000 from his father in law, so not only did I put
my own money in I risked that of my clients. But they were willing to
accept that up front. A couple times it came down to either me
Page 47

getting the money from my clients or us not having the financial ability to
pay off some of the capital resources that we had.
During September we began to have problems with Mary Lynn and the
staff and me. This was the beginning of them trying to reduce and
dilute my control of the company as far as input was concerned. It
was a very emotional and draining experience after all the work I did to
put this all together to find those two were trying to push me out. It
reached the point in October or November where they actually asked
me if I wanted to "get out." They indicated that I was not right for
management, management was not right for me, that I wasn't having
fun and all this and that. Most of that was due to their action as far
as their trying to dilute me and weaken my confidence. They
constantly made fun of me in front of all the other planners at meetings and it
was just ugly.
They also tried to interrupt my relationship with Mary Lynn
which was nothing more than a very personal, deep friendship.
No one knows this, but the trauma was so heavy that I went under
the care of a psychologist at St. Joseph Hospital, beginning November
and I was suffering a severe case of depression.
Because of
schizophrenia being found in my family, I was not afraid to go seek
psychological
counseling. I was on medication for three months. In September
they had it in their minds that they were going to get rid of Mary Lynn.
And they tried every opportunity, finally in November a week before
Thanksgiving, they fired Mary Lynn. Without cause, for no reason,
other than they just wanted her out and felt she was incapable of
whatever.
It actually reached the point where Bob and Mike went around
politicking the brokers to support them that Mary Lynn was not
doing her job which was not true. She had the complete support of all the
brokers. Maybe at times there was a case where someone was
unhappy with her performance, but in general it was a ploy, a plot,
fabricated by Mike and Bob.
After their attempt to buy me out and get rid of me so far as my
control and my interest, I held out reluctantly often times wondering if I
were going to give in and by Christmas I decided I would stick it out.
There were not other alternatives, but the money they offered me to get
out was $2,50 a share which comes out to $100,0000. I wanted no parts
of it, so by January I decided to stay.
Bob had
worried
slack.
beating
several conversations with Bob Long saying that he was

about my entrepreneurial efforts and that I was becoming
The whole reason was that they were hammering me down and
me up in every way they could, destroying my confidence.
Page 48
After I

spent time and effort and I believed in so much of what I'd done,
they were trying to take this away from me and get me out of the
picture.
and
Through November and December there were meetings between

myself, Scott Robertson, Alan Loss, Bob Long and Carolyn Royer
regarding the activities and the management styles of Mike and Bob.
They were very concerned, were not very trusting and I was always in
the middle between the management and financial planners. I had
relationships with everyone and I believe that this threatened Bob
and Mike and they tried to get me out of the picture, but the planners
would not allow this because the planners did not trust Bob and Mike
without having me to keep them on balance.
I raised most of the money, recruited most of the people, put the
offering memorandum together, put the computer system together,
worked with all the computer software, and actually came up with the
name Financial Management Group and the idea of having all the
subsidiaries doing different things. My involvement was very deep,
probably deeper than anyone in the organization.
When I was putting all this together, I was in Texas with Al Dannat. I
talked about having mortgage, banking a part of what I was doing.
Nothing ever happened between the two of us, but in January I
received a call from Al asking me to see if I could place any mortgages in the
east coast. He was willing to pay me roughly one half a point and
this was at a time, because of the activities of Bob and Mike, that I
thought I would give this a try to give me some security. Should something
fail in the company, I would have something to fall back on.
I involved Scott Robertson and Bob Long and I told them we would
form a three way partnership and we would work on a real estate
project on our own. The reason I told no one about this was that this was my
ace card
in case Bob and Mike ever really threw me out. I was not going to give
them any relationships, and I just needed some security.
What we were really doing was looking for loans of 2 million dollars
and up to refinance or finance new and existing real estate projects.
We made a few calls, finding that our rates are very competitive. Al
was more of less letting me get plugged into the major Savings and
Loans and Insurance companies. We found out there were very few people
in the area, if any at all who could acquire the terms. We began
having a great deal of success and what we found was that almost
everyone was allowing us to bid on their project. We created a company
called Creative Finance Company so that we would not expose FMG to any
liabilities as far as our activities. We agreed from the beginning that
FMG would receive a percentage of our activities and we figured
Page 49

15% was fair since we actually manufactured the product where FMG
when out and used other manufactured products. We didn't feel they were
entitled to a 20 - 30% split.
One of our contracts was with Tony Bongoivi in New York. He at one
time dated Scott's sister approximately ten years ago. Scott
maintained a loose relationship with Tony, calling him once in a while regarding
business matters and business activities. Scott called Tony one day
about a real estate project that he thought ---------------------. Tony
said no, but he may have another project that we would be interested
in. Scott asked me to go up to New York with him to talk about the
project and I asked what it was. He indicated it was a movie. I was
very reluctant and hesitant to do this because movies to me, tax
shelters, scams, not very economic type investment. Me being very
conservative was not attracted, but I decided to go anyway just to
get out of town, more or less just to get away.
When I got up there I was totally amazed at the caliber and the
people who we were associating with. What I found out was that we were
working with the leading recording studio in the world. There
credentials, their accomplishments were phenomenal- they were just it.
I'm not going to spend alot of time of this because just the bottom
line is what is important here. After seeing the project when I looked at
what Tony was doing, and from a business perspective there were
just so many elements in this project that were just truly amazing to me
so far as distribution and marketing and risk and everything else.
Bottom line was a product that was worth 15 to 20 million dollars being
made for 4 million with the ability to be one of the leading movie, video
projects of the years.
First of all you have the leading recording studio in the world working
on the sound for the project that was going to include a follow up of
Tony's previous band who was Bon Jovi who was already one of the
hottest thing in music as far as album sales. Then you have the fact
that he was going to digitize the recording which was never done
before in the movie industry at a time when the video market is just going
bananas. Not only that, but the label that signed the band owns
MTV.
You put all this together and you've got a phenomenal business with
alot of opportunity.
Seeing this, I committed myself to the project not knowing who,
where or how we were going to raise 4 million dollars but I believed in the
project so much. I guess because I saw alot of the same elements
used in FMG in this project, and even more. I got instincts when I
raised money for FMG I was still very concerned with the risk
Page 50

elements to my investors but when I looked at this project the risk was even
less. Less risk, more protection with this project so I believed in this
project.
We spent seven or eight weeks developing the packaging the product
for the investors, things have happened during that time that fell into
place perfectly - the article in Rolling Stone, the marketing. It is May
4th at 4:30 a.m. and there is no doubt in my mind with the articles
in Rolling Stone that we have the money for the movie. That project
in itself will probably put us in the forefront of the entertainment industry
within eight weeks. It is mind boggling as far as what can come of
this, but the project is done, we did something, we did not use FMG, they
will receive no split. I guess what I'm saying is that because of the
way Bob and Mike treated me or pushed me to go out and do
things, that did not involve FMG and I did not feel that they did not deserve
to become a part of these things. From the beginning I knew FMG was
going to get their piece.
Let me go back to an earlier development concerning the
Broker/Dealer. We of course thought in the beginning that we would
become our own broker/dealer. However, after long, hard
discussion, we were to the point of getting a license for broker/dealer, we
decided we did not have the administrative capacity to fulfill what we would
need to accomplish the broker/dealer. Back in November, December,
Bob started soliciting other broker/dealer, looking for three things;
service, high pay out, and equity. We knew that we had to own our
broker/dealer business. There were two players that we came across
one was Hibbard- Brown out of Washington DC and the other was
Financial Planners Group which really involves some of the premier
financial planners of the country, Bill Keogler, Wayne Webster, so on
and so forth.
The Keogler group was strong, large, young and they were doing
roughly 20 million dollars of gross commission income per year but
there were some people in the organization we did not feel
comfortable with. Hibbard Brown was a new start up, starting up when we did,
was a split from a previous broker/dealer in D.C., that involved from a
syndicator to a broker/dealer that no one knew anything about.
However, they really enticed us with a very attractive equity deal.
Bob maintained most of the communications and most of the research
involved in this project. It was brought to us in January which was
roughly 20% of their stock with 90% payout , territorial with override
for anything that we did.
One of the things I thought should be done is that someone should
be down there looking at their trading department, along with the
capability of FSC. I tried to get people down there several times and I
suggested Carolyn Royer because of what had happened to her. Finally Peter
Page 51

Poneros and Ken Ray went down, and this was probably during March.
Anyway, this whole thing was done with very little communication as far
as me, Bob and Mike. More of less, Bob would go out and do
something and would feed back to us, but we really had very little
involvement with what we intended to do with Hibbard Brown. One
thing Bob indicated was that if we went down to Hibbard Brown we
would not find much, they were just starting up, they were new, they
had roughly 10,000 sq. foot of office space, a few staff people and the
system of operation. He did feel they were capable of fulfilling our
needs.
We began the transformation of licensing from FSC to Hibbard-Brown
and we probably had 60% to 70% of the in house people to FSC, Alan
Loss, Scott Robertson, Rich Braverman, Keith Waters, Todd Dellinger,
Harry Radcliffe, along with Barry Schuttler and some of the other
satelites. At this point Tom Turner was free and clear and he was
looking for some direction.
By the week of April l9th Tom was up visiting with Bob all week
seeking that direction and he was also visiting with Hibbard Brown so it
looked like Tom would also become involved.
I also negotiated the courtship of Tony Pascoti and got him involved.
From the period of April lst on, when we began transferring license,
one of the main
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FMG, Ltd., BOARD MINUTES OF 05/05/87

060P01.CPR
May 5, 1987
CORRESPONDING AUDIO TRACKS: 01/02/04/06/07/08
PAGES:
3
SU= SUMMARY: Stan Caterbone updates activities of following:

FMG, Ltd., and convienence industry; Mortgage Banking
Business Activities and Availability of Funds;
Movie Project w/Tony Bongiovi & Power Station;
FMG Advisory, Inc.; and the Insurance business;
Ken Ray and Jere Bavero report problems encountered
at Hibbard Brown during visit. Barry Schuttler ("Born
Again") "NO PROBLEMS".
IM= 060P02.CPR
DI= PAGE 02
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TI=\GAMILLION STUDIOS OF HOLLYWOOD REQUEST FOR FINANCING
IM= 061P01.CPR
DA= May 6, 1987
PA= PAGES:
2
SU= SUMMARY: Letter to Financial Management Group, Ltd., from
Marcia Silen's (Producer of Flatbush Films) Becky Austin,
requesting financing assistance for Gamillion Studios of
Hollywood CA. Stan Caterbone meets with Ted and Mary Gamillion
in Hollywood CA, to discuss financial alternatives, and
leaves with several documents pertaining to subject.
Stan Caterbone also meets with Becky Austin to discuss
mortgage and investment banking business in Hollywood CA.
IM= 061P02.CPR
DI= PAGE 02
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TI=\HAMILTON LIFE SOLICITAITON
IM= 062P01.CPR
DA= May 12, 1987
AT= CORRESPONDING AUDIO TRACKS: 07/08
PA= PAGES:
1
Page 53

SU= SUMMARY: Letter to Stan Caterbone from Alexander Hamilton
Live soliciting a contract for various insurance products.
************************************************************
IM= 063P01.CPR
DA= May 13, 1987
PA= PAGES:
5
SU= SUMMARY: Board Meeting set by Stan Caterbone to rescind the
deal previously consumated with Hibbard Brown & Company. Stan
Caterbone refused to let the relationship of Robert
Kauffman and Peter Hibbard compromise the financial and
legal well being of Financial Management Group, Ltd.,.
By overturning the recent Board Decision, Stan Caterbone
had for the first time gained complete control of the
Board of Directors, of which will motivate the further
criminal actions of Hartlett/Kauffman/Peneros/Long/
Robertson. Stan Caterbone later visits with Bill Koegler
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TI=\KENNEDY PROPERTIES REQUEST FOR FINANCING
IM= 064P01.CPR
DA= May 6, 1987
PA= PAGES:
2
SU= SUMMARY: Letter to Stan Caterbone from Kennedy Property
Corporation, of Turnervill NJ, requesting for
financing and mortgage assistance for several projects.
IM= 064P02.CPR
DI= PAGE 02
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TI=\BENNETT WILLIAMS PRELIMINARY SYNDICATION PROPOSAL
IM= 065P01.CPR
DA= May 11, 1987
PA= PAGES:
7
Page 54

SU= SUMMARY: Letter and prelimanary draft of the proposed deal
for the syndication of an office building for the
headquarters of Bennett Williams, as anchor tenant, and a
financial services center. Stan Caterbone will later propose the deal
to Dave Cook, of Turkey Hill Industries, who is very much
interested in deal, and has done business with Dave
Schadd in the past.
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TI=\BENNET WILLIAMS FINAL SYNDICATION PROPOSAL
IM= 066P01.CPR
DA= May 11, 1987
PA= PAGES:
7
SU= SUMMARY: The proposal for the syndication of the Bennett
Williams Real Estate Project, that was developed and syndicated by
Stan Caterbone.
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TI=\HIBBARD & BROWN SYNDICATION EFFORTS
IM= 067P01.CPR
DA= May 11, 1987
Page 55

PA= PAGES:
1
SU= SUMMARY: Letter from Ric Brown, principal of Habbard Brown
& Company, Inc., addressing the legal requirements for
syndicating the Bennet Williams Deal.
Stan Caterbone had become dissatisfied at the response
of Hibbard & Brown regarding this matter, and both
Pete Hibbard and Ric Brown had personally visited with
Stan Caterbone at their offices when Stan Caterbone
decided to perform his own due dilligence on the pending
deal.
************************************************************
TI=\HIBBARD & BROWN SYNDICATION EFFORTS II
IM= 068P01.CPR
DA= May 11, 1987
PA= PAGES:
1
SU= SUMMARY: Letter from Ric Brown regarding Bennett Williams
Syndication and Real Estate Project.
************************************************************
TI=\SCOTT ROBERTSON LOAN FROM S. CATERBONE
IM= 069P01.CPR
DA= May 11, 1987
PA= PAGES:
2
SU= SUMMARY: Copy of the cancelled check that was issued to Scott
Robertson for the amount of $2,000.00 which was a loan
from Stan Caterbone. Scott Robertson never paid the
loan, and Stan Caterbone filed a civil suit in the
court of Murray Horton, in January 8, 1988. Stan
Caterbone had won judgement, but never collected monies.
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DI= PAGE 02
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TI=\KAUFFMAN APOLOGY OF TERMINATION TO HIBBARD & BROWN
IM= 070P01.CPR
DA= May 14, 1987
PA= PAGES:
1
SU= SUMMARY: Letter to Peter Hibbard from Robert Kauffman
addressing the decision to terminate the previous agreed deal.
Page 56

Robert Kauffman stated that he nor Mike Hartlett agreed
or wanted anything to do with the decision to look
to another Broker Dealer for a deal. This is why they did what they did.
*****************************************************************
TI=\RESEARCH FOR THE SONY JOINT VENTUR PROPOSAL
IM= 071P01.CPR
DA= May 18, 1987
PA= PAGES:
4
SU= SUMMARY: A sample of the research materials used to develop
the SONY deal for the "Digital" movie.
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TI=\STAN CATERBONE AND RANDY GRESPIN VISIT PLANNERS SECURITIES GROUP
IM= 332.CPR
DA+ May 18, 1987
PA= PAGES: 01
SU= SUMMARY: The Planner Schedule outlines the charter flight schedule
of Stan Caterbone's plane, and his flight log to Atlanta, Georgia.
After Stan Caterbone directed FMG, Ltd., to rescind the ilegitamate
and current merger with the Hibbard & Brown Company, Stan Caterbone
decided to personally visit the Broker Dealer of William Koegler, of
Atlanta, GA. Stan Caterbone was familiar with Bill Koegler's operatation
because of his work with the International Association of Financial
Planners (IAFP). Many of the planners that served as National Chaimen
of the IAFP were part of Bill Koeglers group. Bill Koegler also was
a with John Keeble at FSC, in Atlanta. Stan Caterbone was well aware
of the quality of products and services that they had to offer.
Stan Caterbone also invited attorney Randy Grespin to accompany him in
an effort to work on the affiliation of The Underwriters Group of
Harrisburg for possible insurance product. Stan Caterbone had been
working with the president, Tony Pascotti, on a number of different
projects.
Randy Grespin had agreed to pay Stan Caterbone for 1/2 of the charter
costs for the use of Stan Caterbone's plane. Stan Caterbone would
recieve approximately $600.00 from The Underwriters Group for the
Page 57

charter service.
The meetings were very productive, and it is here that Stan Caterbone
made a personal evaluation that the Planners Group would be the best
firm to develop a merger/acquisition on the grounds of service, support,
and reputation.
This meeting set the groundwork for the proceeding merger acquisition
deal with Bill Koegler.
Immediately upon the return, Robert Kauffman made an announced visit to
the residence of Stan Caterbone outraged and yelling "Who is running this
company?" Stan Caterbone replied " I don't care who is running this
company, as long as it is for the right reasons".
Bob Kauffman then asked Stan Caterbone to approve his new management
contract, which included undeserving financial elements. Stan Caterbone
quite emphatically opposed to having Robert Kauffman being compensated
on business that was the direct and exclusive results of Stan Caterbone's
efforts.
This set the stage for Robert Kauffman to find a way to get rid of
Stan Caterbone, no matter what it would take.
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TI=\JOINT VENTURE PROPOSAL WITH SONY FOR DIGITAL MOVIE
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DA= May 25, 1987
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11
SU= SUMMARY: The original SONY deal that was developed by Stan
Caterbone for the development of feature films, video,
and thatrical productions utilizing the new DIGITAL
Technology that was developed by Tony Bongiovi and Power
Station Studios. Stan Caterbone created a business plan
that would include the manufacturing of hardware systems
for the professional recording studio, film theatres,
and consumer electronics. Films have yet to deliver
digital technologies.
SONY JOINT VENTURE PROPOSAL FOR THE DIGITAL MOVIE
I.
II.
III.
IV.
V.
INTRODUCTION
SONY'S ROLE
PRODUCT DEVELOPMENT
MARKETING AND DISTRIBUTION
APPENDIX
Page 58

INTRODUCTION
Tony Bongiovi and Power Station Studio are undertaking a
project that has the potential of revolutionizing the entertainment
industry. In the next few pages of this proposal, I will outline the
elements involved and how Sony can participate in this
landmark event.
The technology of the recording industry has been advancing by
leaps and bounds. We have seen the advances from monaural
long playing record to stereo record to compact disc. Now we
are seeing tape systems that use digital rather than analog
signals appear, matching the quality of compact discs. What
has happened to the theatre's? The audio portion of a film, is
as responsible for the sensations one experiences at a motion
picture as the visual, yet many theatre's are still
equipped only for mono sound. Why is this? We feel there are
two basic reasons.
1> The relative high cost of upgrading a theatre to be able to
incorporate the advanced technologies of the audio industry.
2> The lack of proper equipment for the film industry to
produce high quality digital audio tracks.
These two problems should not be addressed separately. There
is little motivation for upgrading until the product is available and
even less motivation to produce a product that can not be
heard.
Tony Bongiovi and Ed Evans at Power Station in New York,
have now made it possible to address these problems
simultaneously. Their creation of the new "Power Station Digital
Movie Sound" (PSDMS), will not only enable the film industry to
produce the highest quality audio tracks for film, but will also
allow theatre's to upgrade their existing sound system at a
minimal cost.
To introduce this revolutionary new sound, Bongiovi is in the
process of producing a film entitled "Mutant Mania", which is a
science fiction action horror film, shot in a small ocean resort
town in New Jersey. This film has many elements that make it
perfect for the introduction of PSDMS. The most prevalent of
these being the heavy music score by Bongiovi's latest band
"French Lick". Producing bands is definitely one of Bongiovi's
fortes. Bongiovi was instrumental in creating "Bon Jovi" who is
probably the strongest force in the rock and roll circuit today.
Page 59

"Bon Jovi's" third album "Slippery When Wet", has sold more
copies in a short period of time than any other band in history.
Another is the fact that this is a horror film. The use of audio in
horror films is important to create tension, fear, excitement etc..
Using a horror film also lessens the influence the critics have on
the audience.
By the large this film will stand on it's own merits.
PSDMS, and you have a potential block buster event.
Now add
How does Sony fit into all of this?

SONY'S ROLE
What We are seeking to do, is establish a distribution route in
which the message of Sony's new technology and its benefits
can be more easily and directly passed on to the consumer.
SONY/PSDMS
Picture a one or two minute commentary at the beginning of the
movie and home video, demonstrating the difference between
the quality of theatrical sound now and the new SONY/PSDMS
sound. This does two things. First, by demonstrating the
difference in quality of the new sound, you reinforce in the
audiences mind that it is much better, which as you will hear,
there is little doubt. Secondly it reinforces in the audience that
Sony truly is a pioneer of advanced innovative technologies.
In addition to the commentary, Sony will receive credits on the
film, ie. SONY/PSDMS. We will include in the copyright
agreement that Sony Equipment must be used to be
SONY/PSDMS.
Sony's name will also be strategically placed throughout the
film. This may be done in the form of billboards, advertisements,
or Sony equipment being utilized.
A commercial may be developed for TV promoting both the film
and Sony's contributions to advanced audio techniques in the
film industry. This could be done as a joint venture between
Sony and the distribution company for the theatrical and video
exhibition.
Inside every video tape that is sold, a coupon may be placed to
promote Sony products.
Page 60

A full line of quality equipment may be SONY/POWER STATION
labeled for consumer use to enhance marketability of Sony
entertainment products.
Sony Video Software Corporation will receive right of first refusal
on all contracts for video and theatrical distribution. We will
allow Sony a preferred 5% margin under any other distributor for
a competitive edge.
TIMING
Timing is crucial in a project that touch so many different areas.
MARKETING AND DISTRIBUTION
Most of the industry by their own admission is at least two years
away from an effort to upgrade the sound in movie theatres.
With the SONY/PSDMS system, other companies may adapt
easily and economically to produce products with digital movie
sound. With companies adapting to this process, the future
should see the prominence of the SONY/PSDMS insignia much
the same as you see the Dolby insignia today. This will act as
a constant reminder to the public that Sony truly is a pioneer of
advanced audio visual technologies.
Sony will receive exposure in the professional market place by
having the SONY/POWER STATION equipment used in theatres
and studios to produce the SONY/PSDMS sound.
The video industry is a 56 billion dollar industry that is in need
of product. When you look at the potential for a product that
will be one of the first feature films to compliment the fast paced
VCR/Stereo Entertainment components, with a musical score
that may have enough merits of its own, you have an amazing
potential for distribution.
The Digital and Disc Industry has proven to be the future
standard for recording and playing. Because of the relative
newness of the digital format, there are more people who have
yet to experience the digital sound. With the high exposure that
will come from this project, this could be the first time ever
people hear digital. How many people? 1 - 10 - 50 - 100
million?
What will be their first reaction?
I need to buy a Disc Player!
Who's name will they think of first?
SONY/PSDMS!
Page 61

PRODUCT DEVELOPMENT
Bongiovi and Evans at Power Station have developed a
revolutionary hybrid mixing console to penetrate the video post
production market. This console was developed to enable
engineers to produce high quality audio tracks for the film
industry as well as the recording industry. This new console
utilizes an automation system that can be used by both
industries. This new console is especially atractive to the
film industry, as it will greatly reduce production costs since
mixing costs in a recording studio are much less. At present
the console that is being used is a bastardized system that
utilizes components from many different pieces of equipment,
from a number of different companies, of which Sony is one.
Because we already have a working model of this console, it
would take very little time for a finished product to be
manufactured that could carry the SONY name.
The other piece of equipment that is essential to the PSDMS
process, is the box that enables the laser disc to automatically
read the synchronization track encoded on the film. This piece
of equipment can be produced at an extremely low cost. It is
this low cost and the fact that the theatres will not have to
replace their present projectors that make digital movie sound
a reality in 1988.
We feel that with consumers demanding the same quality audio
at theatres, as they have become accustomed to with their
home entertainment systems, theatre owners will have little
problem investing the nominal amount of dollars involved, to
upgrade their theatres for digital audio. This investment could
be as low as $1000.
With the cost being so low, the distribution company may want
to consider bearing the burden of this cost, if the theatre owners
agree to show Bongiovi's next three films.
FINANCIAL STRUCTURE
SONY will commit four million dollars for the production of
Bongiovi's film to be released in 1988.
We would like SONY to commit fifteen million for three to four
future products that will follow the same format as the first, so
that Bongiovi and SONY will position themselves as the pioneer
and leaders in the industry. This will not allow competition to
gain access to the marketplace until we are all firmly situated
and profitable.
Page 62

Sony will only pay for expenses to produce 60 second spots.
Tony and Power Station will utilize any and all services to help
produce the spot and will allow reimbursement for only true
costs with no mark up including all of Tony's time which will be
free.
Power Station and Power Productions I will receive a negotiated
percentage from all revenues generated from the merchandizing
campaign of the SONY/POWER STATION products and the
sale that may result to other film studios utilizing Sony/POWER
STATION equipment in the PSDMS System.
We will receive four deluxe entertainment systems - Television,
VCR, Stereo, Etc. that is top of the line to help during the
production of the film.
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The purpose of the above and all aspects of this Proposal is to

let the separate entities involved maximize their profits for their
respective talents; Bongiovi in film and music production and
Sony in manufacturing and distribution of equipment and
merchandise and later video and film distribution. END
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DA= May 18, 1987
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PA= PAGES: 7
SU= SUMMARY: In May of 1987, Stan Caterbone attended a conference sponsored
by Philadelphia Life, in Palm Springs, California. The trip was
awarded because of the high amount of business Stan Caterbone did with
the Philadelphia Life Company. Most of this business was the result of
the Estate Planning performed for Dr. William Umiker.
Upon returning, Stan Caterbone found this article in "SKY" MAGAZINE,
supplied by the airlines. The article in the Technology section
explicitly discusses the poor quality of sound that is delivered in
conventional full legnth major film productions. It also discusses
the future need for a "digital" technology to improve the overall
effect of motion pictures. The author also applaudes the work of
George Lucas, of Lucasfilm, for the "Star Wars" production, of which
Tony Bongiovi was an integral part of.
Ironically, this was another one
Especially considering that Stan
Hollywood where he disclosed his
And conviently, he finds a newly
findings of the same topic.
of those extroadinary "coincidences" ?

Caterbone had just returned from
SONY proposal to Flatbush Films.
published article supporting his
Stan Caterbone left the conference early in order to meet with Marcia
Silen, one of the producers for Flatbush Films. Stan Caterbone had
disclosed the original draft for the SONY joint venture proposal.
Stan Caterbone and Marcia Silen collaborated on the proposal and
Marcia Silen said "Stan, you are a genius".
Stan Caterbone also visited with Becky Austin, Marcia Silen's sister, and
discussed the mortgage banking business. Becky Austin was a paralegal for
one of the more active law firms specialinzing in Real Estate in Beverly
Hills. Becky and Stan discussed a strategic alliance that would result in
the development of an office in Beverly Hills for the loan portfolio of
Institutional Investors. Al Dannatt was consulted, and a futere meeting
between Stan Caterbone, Becky Austin, and Al Dannatt was agreed upon either
in Houston, Texas, or Beverly Hills, CA. Becky Austin was very experienced
in the Beverly Hills real estate busniness, and had a great of connections
that would have been required to pursue such a business.
Marcia Silen had tried to schedule a meeting between Ted Gamillion of
Gamillion Studios, and Stan Caterbone, however schedules were not
permitting. The meeting would later take place on July 21, 1987.
IM=
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332B.CPR
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332C.CPR
PAGE 3
Page 64
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332D.CPR
PAGE 4
332E.CPR
PAGE 5
332F.CPR
PAGE 6
332G.CPR
PAGE 7
************************************************************
TI=\DIGITAL MOVIE LETTOR OF INTENT

IM= 073P01.CPR
DA= May 19, 1987
PA= PAGES:
3
SU= SUMMARY: Letter of Intent for Joint Venture Participation and
contribution for the "Digital" movie. Norris Boyd of
Boyd Wilson, sharholder and client of FMG, and owner of
Olde Hickory Properties, to which Stan Caterbone had
produced a $5,000,000 loan, of which Noriss Boyd had
specifically noted that the terms were better than those
of Commonwealth National Bank, which was holding the
existing paper, which totaled more than 12,000,000, of
whom reposses Stan Caterbone's plane, 15 days before any
monies due, had agreed to invest in the movie.
IM= 073P02.CPR
DI= PAGE 02
IM= 073P03.CPR
DI= PAGE 03
************************************************************
TI=\POWER PRODUCITON I -- LEGAL FORMATION
IM= 074P01.CPR
DA= May 20, 1987
PA= PAGES:
1
SU= SUMMARY: Invoice from Richard C. Fox, Attorneys at Law in
Harrisburg, PA to Stan Caterbone for the professional
services rendered including the drafting of a Letter of
Intent for the "digital" movie "Mutant Mania", and the
stucturing of Power Productions I, the General Partner
for the movie project with Tony Bongiovi and Power
Sations Studios, of New York NY.
************************************************************
TI=\FLATBUSH FILM LETTER RE: INSURANCE BONDING
Page 65
IM=
DA=
AT=
PA=

075P01.CPR
May 21, 1987
CORRESPONDING AUDIO TRACKS: 01/02/03/04/05/06/07/08
PAGES:
1
SU= SUMMARY: Letter from Arlene Davidson, Associate Producer, of

Flatbush Films, Sherman Oaks CA outlining specific
bonding reguirements, budget requirements, and actual
production requirments for the "digital" movie project.
************************************************************
TI=\FLATBUSH FILM LETTER CONFIRMING SCHEDULE OF MEETINGS
IM= 076P01.CPR
DA= May 23, 1987
PA= PAGES:
1
SU= SUMMARY: Letter to Ellen Libman, Power Station Studios, copied
to Stan Caterbone outlining the schedule of meetings
with Marcia Silen, Barbara Peters, and Arlene Davidson,
all of Flatbush Films, the Producers for the "digital"
movie. All parties were to meet in Wildwood, NJ, the
location for the filming of the movie.
************************************************************
TI=\FINANCIAL MANAGEMENT GROUP, Ltd., CORPORATE & FINANCIAL STATUS TO DATE
IM= 313.CPR
DA= May 23, 1987
AT= AUDIO TRAKS: ALL
PA= PAGES: 1
SU= SUMMARY: Stan Caterbone had prepard a financial and corporate status
report for Financial Management Group, Ltd.,. This report was prepared
from information that Stan Caterbone had formulated along with certain
financial estimates obtained from Robert Kauffman.
This report illustrates the extroadinary comparisons of origanl growth
rates for a 3 year period that was originally projected in the original
business plan of July, 1986. By May of 1987, the report suggests that
FMG, Ltd., was almost 2 YEARS ahead of the origianl forcasts for:
capital raised; total commissions; total revenues; sales force; and
most importantly corporate equity or stock value.
Under the above assumptions, utilizing the traditional method of
valuing a financial services distribution company, the value per share
was estimated at $17.00 per share.
This method of valuation would have valued the stock of Stan Caterbone
Page 66

to be worth $686,800.00.
************************************************************
TI=\DIGITAL MOVIE MARKETING MATERIALS
IM= 077P01.CPR
DA= May 25, 1987
PA= PAGES:
15
SU= SUMMARY: A copy of the marketing materials used in talking to
potential investors for the movie "MUTANT MANIA".
IM= 077P02.CPR
DI= PAGE 02
IM= 077P03.CPR
DI= PAGE 03
IM= 077P04.CPR
DI= PAGE 04
IM= 077P05.CPR
DI= PAGE 05
IM= 077P06.CPR
DI= PAGE 06
IM= 077P07.CPR
DI= PAGE 07
IM= 077P08.CPR
DI= PAGE 08
IM= 077P09.CPR
DI= PAGE 09
IM= 077P10.CPR
DI= PAGE 10
IM= 077P11.CPR
DI= PAGE 11
IM= 077P12.CPR
DI= PAGE 12
IM= 077P13.CPR
DI= PAGE 13
IM= 077P14.CPR
DI= PAGE 14
IM=077P15.CPR
DI= PAGE 15
************************************************************
TI=\FMG, Ltd., NEWSLETTER OF 5/26/87
IM= 078P01.CPR
DA= May 26, 1987
PA= PAGES:
2
SU= SUMMARY: Michael Hartlett welcomes the association of Craig
Page 67

Russel and the law firm of Russel, Kraft, Gruber, and Huber to
FMG, Ltd,. Michael Hartlett had proceeded with structuring a deal
with the Craig Russell, without any considerations by
Stan Caterbone, principal, or the Board of Directors.
IM= 078P02.CPR
DI= PAGE 02
************************************************************
TI=\W. UMIKER ESTATE PLANNING
IM= 079P01.CPR
DA= May 28, 1987
PA= PAGES:
1
SU= SUMMARY: Letter to Dore Valvanes regarding the Power of
Attorney of Dr. William Umiker.
************************************************************
TI=\FLATBUSH FILM DRAFT SCREENPLAY OF DIGITAL MOVIE
IM= 323.CPR
DA= May 29, 1987
PA= PAGES:
1
SU= SUMMARY: Letter and first draft of screenplay of the"digital"
movie in preparation for meetings in Wildwood NJ. Letter
is from Arlene Davidson of Flatbush Films to Stan
Caterbone.
************************************************************
TI=\FLATBUSH FILM MEETING SCHEDULE
IM= 081P01.CPR
DA= May 29, 1987
PA= PAGES:
1
SU= SUMMARY: Revised schedule of the meeting in Wildwood NJ,
with Flatbush Films, Power Station Studios, and Stan Caterbone
************************************************************
TI=\JUNE PLANNER SCHEDULE OF S. CATERBONE
IM= 082P01.CPR
DA= June 1, 1987
IM= 322.CPR
PA= PAGES:
1
SU= SUMMARY: Flight log of Stan Caterbone outlinging the flight to
Page 68

William Koegler, Broker Dealer, on the 18th of June with
Randy Grespen, of the Underwriters Group, (TUG). TUG
had agreed to pay for 1/2 of the flight hours at the
rate of $250.00 per hour, approximately 7. Also outlines the
schedule of Jim Bly, of Sourc Capital to rent the airplane at the rate of $250
per hour, which
would have been approximately 6 hours of flight time.
The plane was repossesed and Jim Bly was unable to fly.
************************************************************
TI=\BUSINESS WEEK
IM= 331.CPR
DA= June 1, 1987
AT= AUDIO TRACKS:
PA= PAGES: 7
"SONY'S CHALLENGE"
04/05/08/09
SU= SUMMARY: The June 1, 1987 issue of "Business Week", features

SONY chairman Ako Morito on the Cover. The article is another
example of the incredible forsight with which the SONY joint venture
proposal was developed. The strategies and the business elements that
the SONY joint venture proposal contains, are clearly substantiated in
this feature article.
The SONY joint venture proposal for the "Digital" movie was produced
some 40 days prior to the release of this article.
IM=
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DI=
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331B.CPR
PAGE 2
331C.CPR
PAGE 3
331D.CPR
PAGE 4
331E.CPR
PAGE 5
331F.CPR
PAGE 6
331G.CPR
PAGE 7
************************************************************
TI=\TRUMP STOCK CERTIFICATES

IM= 083P01.CPR
DA= June 3, 1987
PA= PAGES:
1
SU= SUMMARY: Letter from Rick Trump, a sattelite office of FMG,
Ltd., located in Skippack, PA, to Stan Caterbone regarding
Page 69

previous stock transactions and instructions for
Stan Caterbone regarding the titles of the stock
certificates.
************************************************************
TI=\LAST FMG, Ltd., STOCK CERTIFICATE ISSUED BY S. CATERBONE
IM= 084P01.CPR
DA= June 9, 1987
PA= PAGES:
1
SU= SUMMARY: Last legal Financial Management Goup, Lt,, signed
by Stan Caterbone, Secretary, Executive Vice President.
************************************************************
TI=\LANCASTER AVIATION COMPLAINT LETTER
IM= 319.CPR
DA= June 11, 1987
PA= PAGES:
2
SU= SUMMARY: Letter to Charles Smith, President of Lancaster
Aviation from Stan Caterbone, regarding dissatisfaction of the
conduct of Lancaster Aviation, Pete Wolfson, and the
persuation by Lancaster Aviation not to purchase the
no cash deal of Gannett Flemming, of Harrisburg, for the
purchase of the Cessna 402 B-1973 aircraft, in which
Gannett Flemming would have provided 100% financing at
approximately 1/2 the cost of the Lancaster Avition
aircraft.
IM= 319B.CPR
DI= PAGE 02
************************************************************
TI=\FLATBUSH FILMS PRODUCTION SCHEDULE FOR DIGITAL MOVIE
IM= 086P01.CPR
DA= June 12, 1987
PA= PAGES:
7
SU= SUMMARY: Letter to Stan Caterbone from Arlene Davidson of
Flatbush Films outlining the production schedule of
the "Digital" movie. Schedules begin June 28, 1987 and
are completed in Post Production in January of 1988.
Davidson also expresses concern to move everything up
15 film is to be produced this season.
IM= 086P02.CPR
DI= PAGE 02
Page 70
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086P03.CPR
PAGE 03
086P04.CPR
PAGE 04
086P05.CPR
PAGE 05
086P06.CPR
PAGE 06
086P07.CPR
PAGE 07
***********************************************************
TI=\AIRCRAFT PURCHASE AGREEMENT

IM= 314.CPR
DA= June 12, 1987
PA= PAGES 2
SU= SUMMARY: Following are the authentic "PURCHASE AGREEMENT" for the
1978 PA-31-325 PIPER aircraft and the "REGISTRATION" filed with
the U.S. Department of Transpertation. This agreement was authorized
by Pete Wolfson, Director of Sales with Lancaster Aviation
IM= 315.CPR
DI= PAEG 02
************************************************************
TI=\FARMERS FIRST BANK LINE OF CREDIT APPLICATION
IM= 087P01.CPR
DA= June 13, 1987
PA= PAGES:
2
SU= SUMMARY: Documents are in part of application for a line of
credit to Farmers First Bank, by Stan Caterbone. Pete Richter
of Farmers First was handling the loan application. Stan
Caterbone had applied for a line of credit, pledging his
stock in Fianacial Management Group, Ltd. for collateral.
However Michael Hartlett refused to provide any financial
information of Financial Management Group, Ltd., to eithr
Farmers First, or to Stan Caterbone, which according to
the bylaws and the articles of incorporation is in
violation of shareholder rights to inspect the books!
IM= 087P02.CPR
DI= PAGE 02
************************************************************
TI=\WEINSTEIN DEVELOPEMENT REQUEST FOR FINANCING
IM= 088P01.CPR
Page 71
DA=
AT=
PA=
SU=

June 15, 1987
PAGES:
1
SUMMARY: Letter from Susan Weinstien, of Tenefly NJ
requesting financing of both debt and equity for real estate project
in the rapidly growing Hunterdon County, New Jersey,
which is in the I-78 Corridor outside New York City.
Susan was referred by Tony Bongiovi and Bob Walters.
************************************************************
TI=\PLANNERS SECURITIES -- FMG, Ltd., ACQUISITION

IM= 089P01.CPR
DA= June 18, 1987
PA= PAGES:
1
SU= SUMMARY: Planner Schedule outlining trip to Atlanta in Stan
Caterbone's plane with Randy Grespin of (TUG) The
Underwriters Group to propose deal with the Broker
Dealer of William Koegler, The Planners Security Group.
TUG was paying $250 per hour for 1/2 of trip. Stan
Caterbone recommended that FMG, Ltd., to a deal with
the Planners Group, instead of Hibbard Brown.
When
Stan Caterbone arrived back in Lancaster, Robert Kauffman
demanded an explanation as to "Who is running this show?"
Stan said "I don't care who, as long as its done right!"
************************************************************
TI=\FMG, Ltd., PATENT RESEARCH
IM= 090P01.CPR
DA= June 22, 1987
PA= PAGES:
2
SU= SUMMARY: Letter from Joel Goldhammer of Seidel, Gonda,
Goldhammer, & Abbott, P.C., of Philadelphia to Stan Caterbone
regarding the "Service Mark Search for "Financial
Management Group" for patent and or trademark analysis
for services of legal, accounting, real estate, insurance
stock brokerage, portfolio management, market timing,
financial planning, mortgage banking, and investment
banking. Also enclosed was the actual results of the
search done on a national basis.
IM= 090P02.CPR
DI= PAGE 02
************************************************************
TI=\UMIKER MEMO
Page 72
IM=
DA=
AT=
PA=

091P01.CPR
June 22, 1987
PAGES:
1
SU= SUMMARY: Memo to Dr. William Umiker from Stan Caterbone

discussing the retainment of Todd Dellinger, of FMG, Ltd., as
Director of Client Affairs, for the clients of Stan
Caterbone, exclusively, due to the rapid growth of
FMG, Ltd., and the additional responsibilities of
Stan Caterbone with regards to Mortgage Banking and the
"Digital" movie.
************************************************************
TI=\LARRY RESCH (ISC) MEETING WITH STAN CATERBONE
IM= 092P01.CPR
DA= June 23, 1987
PA= PAGES:
1
SU= SUMMARY: Planner schedule of June 23, 1987 of Stan
Caterbone, outlining the meeting initiated by Larry Resch,
partner with Jere Sullivan (personal friend of Stan Caterbone)
and Carl Jacobson, brother-in-law of James Guerin, with Stan Caterbone
at his office at FMG, Ltd.,. Upon arrival Larry Resch said that "Carl
Jacobson could not make it, we had to fly him out of the
country early this morning". Stan Caterbone went on to
describe the alleged illegal and improper business
activities of James Guerin, ISC, and thier role in the
United Chem Con case. Larry requested Stan Caterbone to
find a new facility for Chem Con, and help resuce the company .
Jere Sullivan had called Tom Caterbone, brother of Stan Caterbone, on
or about December 16, 1990, to question whether Stan Caterbone was
taking medicine, and again to allege a relapse of "insanity", as he did
back in 1987. During the month of December, of 1990, Stan Caterbone
made it known that it was time to resolve any and all issues relating to
the "Blackmail" of 1987. Stan Caterbone also specifically told Jere
Sullivan that he had talked to James Christian from Loretto State Prison
December 7th, 1990. Jere Sullivan tried to convince Stan Caterbone that
Larry Resch was a freind and "Larry would not do anything to hurt you".
Jere Sullivan also indicated that Jim Christian had told his mother that
he was responsible for calling the FBI to report criminal allegations of
James Christian, back in the summer of 1987.
************************************************************
TI=\FMG ADVISORY RIA APPLICATION
IM= 093P01.CPR
Page 73

DA= June 23, 1987
PA= PAGES:
2
SU= SUMMARY: Letter to Stan Caterbone, from Jeff Jamouneau, of
McNeese Wallace, and Nurick enclosing a form letter to Paul D.
Schwartz of the Pennsylvania Securities and Exchange
Commission with regards to the Registered Investment
Advisor application of FMG Advisory, of which Stan
Caterbone was President, and Secretary.
IM= 093P02.CPR
DI= PAGE 02
************************************************************
TI=\INVOICE FOR LOCKS CHANGED BY RUSSEL LOCKS
IM= 094P01.CPR
DA= June 23, 1987
PA= PAGES:
1
SU= SUMMARY: Invoice from Russell Locksmith to Stan Caterbone
and FMG Advisory for changing the lock to the office of
Stan Caterbone, which was performed on June 23, 1987.
Stan Caterbone became untrusting of Robert Kauffman and
Michael Hartlett, and because of his fiduciary
responsibility as an officer, to the shareholders, and
in preservation of his own investments and business
dealings, wanted additional security while he
investigated questionable activities of Hartlett and
Kauffman. All FMG transfer records were contained herin.
************************************************************
TI=\FORGED STOCK AND BURGLARY OF S. CATERBONE'S OFFICE
IM= 096P01.CPR
DA= June 25, 1987
PA= PAGES:
1
SU= SUMMARY: A copy of a Stock Certificate for FMG, Ltd., for 8,000
shares made out to Peter Peneros, with the forged
signiture of Robert R. Long signing as Secretary of
FMG, Ltd., when in fact Stan Caterbone was the legal
secretary of Financial Management Group, Ltd., Robert
Kauffman also signed as President, signifying his
involvement of violations of the Articles of
Incorporation, Corporate Bylaws, Offering Memorandum, etc
Even more importantly, Stan Caterbone had all of the
records and transfer books in his locked offfice (6/23).
Page 74

************************************************************
TI=\POWER STATION PATENT RESEARCH
IM= PP1.CPR
DA= June 25, 1987
AT= AUDIO TRACKS: 04/05/08/09
PA= PAGES: 03
SU= SUMMARY: Stan Caterbone had directed patent attorney Jeff Goldhammer
to research information regarding the "Power Station" trademark for the
purpose of merchandizing various electronic equipment in both the
retail and professional video and recording markets. This was especially
important for the "Power Station Digital Music Sound" (PSDMS) that would
be an integral part for the movie.
IM= PP2.CPR
DI= PAGE 2
IM= PP3.CPR
DI= PAGE 3
************************************************************
TI=\LANCASTER AVIATION INVOICE FOR UNAUTHORIZED REPAIRS
IM= 097P01.CPR
DA= June 26, 1987
PA= PAGES:
2
SU= SUMMARY: An invoice from Lancaster Aviation and Chuck Smith
to FMG, Ltd., for unauthorized repairs made to the aircraft
of Stan Caterbone. Stan Caterbone purchased the aircraft
with the prerequirments of a pre inspection, of which no
mention of any required or defficient mechanical problems
made during the settlement of the purchase of the
aircraft. Stan Caterbone had no knowledge of any work
performed on the aircraft until reciept of this invoice.
Another attempt to embezzle funds from Stan Caterbone.
IM= 090P02.CPR
DI= PAGE 02
************************************************************
TI=\LANC AVIATION INVOICE
IM= 098P01.CPR
DA= June 29, 1987
PA= PAGES:
1
SU= SUMMARY: A letter from Chuck Smith of Lancaster Aviation to
Stan Caterbone, demanding payment for the repairs of the
previous invoice, fuel, and pilot services. More
Page 75

importantly, Chuck Smith acknowledges that he as
taken the liberty of repossesing the aircraft, which was
why Jim Bly of Source Capital was unable lease the plane
from Stan Caterbone. However Stan Caterbone had an
unsecured line of credit with Lancasster Aviation, and
had no financial interest in the aircraft at the time of
reposession. He also verifies that the plane is insured.
************************************************************
TI=\JUNE PLANNER SCHEDULE OF S. CATERBONE
IM= 099P01.CPR
DA= June 29, 1987
PA= PAGES:
1
SU= SUMMARY: Stan Caterbone has a meeting at the headquarters
of Bennett Williams, of York PA, with Dave Schadd and
Bob Buehler. Stan Caterbone was about an hour late
for the meeting, and arrived at about 12:00pm. Stan
Caterbone had discussed the pending real estate deal and
specifically the interest of Dave Cook. Stan Caterbone
also discussed the seriosness of his partners recent
actions, specifically the break-in of his office. Bob
Kuaffman had made previous arrangements to sit in on
meeting, uninvited, and without Stan Caterbone's invite!
************************************************************
TI=\W. UMIKER CHECK TO LANCASTER AVIATION
IM= 100P01.CPR
DA= June 29, 1987
PA= PAGES:
1
SU= SUMMARY: A copy of the check from Dr. William Umiker made
payable to Lancaster Aviation in the amount of $25,000. After
Chuck Smith had knowingly deposited a post dated check
from Stan Caterbone that did not have sufficient funds,
Stan Caterboen had called Dr. William Umiker to loan the
funds until the monies were recieved from Keystone
Mutual Funds, in the account of Millard Johnson. Dr.
Umiker was repaid the following day, when the funds were
recieved from Keystone, as expected. This was another
attempt by Chuck Smith to discredit Stan Caterbone.
************************************************************
TI=\SUBPOENA FOR S. CATERBONE IN CASE VS. H. FISCHER
IM= 101P01.CPR
DA= June 30, 1987
Page 76

PA= PAGES:
1
SU= SUMMARY: A Subpoena to Stan Caterbone from the law offices
of Rank & Rank for the Court of Common Pleas. Katherine
H. Evers, plaintiff, had subpoena'd Stan Caterbone in
the case against Herbert Fischer, Martin Sponaugle, and
the company of Fischer-Sponaugle real estate company, the
owner of the FMG, Ltd., headqaurters, and general partner
for Eden Associates II. Stan Caterbone never new anythig
about this case, and still has no knowledge why he was
subpoena'd.
************************************************************
TI=\FMG, Ltd., SHAREHOLDERS OF RECORD (JUNE 23, 1987)
IM= 312.CPR
DA= June 23, 1987
AT= AUDIO TRACKS: ALL
PA= PAGES; 1
SU= SUMMARY: The last documented Shareholders of Record that Stan Caterbone
had prepared before FMG, Ltd., officers had ilegally obtained access to
such records.
************************************************************
TI=\FMG, Ltd., MESSAGES FOR S. CATERBONE
IM= 102P01.CPR
DA= July 1, 1987
PA= PAGES:
9
SU= SUMMARY: Phone Messages taken by Lynn Kreider, of FMG,
Ltd., and Administrative assistant for FMG Advisroy and FMG
Accounting. The phone messages were taken for Stan
Caterbone, and reflect business as usual.
IM= 102P02.CPR
DI= PAGE 02
IM= 102P03.CPR
DI= PAGE 03
IM= 102P04.CPR
DI= PAGE 04
IM= 102P05.CPR
DI= PAGE 05
IM= 102P06.CPR
DI= PAGE 06
IM= 102P07.CPR
DI= PAGE 07
IM= 102P08.CPR
Page 77

DI= PAGE 08
IM= 102P09.CPR
DI= PAGE 09
************************************************************
TI=\LIQUID ASSETS CASH BALANCE AS OF JULY 3, 1987
IM= 103P01.CPR
DA= July 1, 1987
PA= PAGES:
8
SU= SUMMARY: Copies of all cash accounts for Stan Caterbone, that
indicate that on July 1, 1987, Stan Caterbone had cash
balances of $15,134.10. This is quite contrary to what
the banks were indicating by thier irreprehnsible actions
toward both a borrower and competitor.
IM= 103P02.CPR
DI= PAGE 02
IM= 103P03.CPR
DI= PAGE 03
IM= 103P04.CPR
DI= PAGE 04
IM= 103P05.CPR
DI= PAGE 05
IM= 103P06.CPR
DI= PAGE 06
IM= 103P07.CPR
DI= PAGE 07
IM= 103P08.CPR
DI= PAGE 08
************************************************************
TI=\PLANNER SCHEDULE OF S. CATERBONE RE: J. RODA
IM= 104P01.CPR
DA= July 2, 1987
PA= PAGES:
1
SU= SUMMARY: After learning the actions of several FMG, Ltd.,
persons in burglarizing the office of Stanley J. Caterbone,
Executive Vice Presient, Secretary, Incorporator, and
Tenant, of Finanacial Management Group, Ltd,. and
President, Incorporator, and Secretary of FMG Advisory,
and President, Incorporator, and Owner of Pro Financial
Group, Ltd., and Proprietor of Creative Finance, and
General Partner of Power Productions I, Stan Caterbone
had the fiduciary obligation and resposnibiltiy to
preserve and protect the interests of the above entities.
Page 78

************************************************************
TI=\ROMAR AVIATION
IM= 105P01.CPR
DA= July 2, 1987
PA= PAGES:
1
SU= SUMMARY: Reciept of Romar Aviation, confirming payment for
insurance. Stan Caterbone had decided that it would be in the best
interest of all concerned to move his files to Stone
Harbor NJ, where he could begin to inspect the records of
all of the companies that were headquarted at the
1755 Oregon Pike, Lancaster PA. However, the airplane
was convieniently reposessed with all documents held as
hostage. Stan Caterbone had instructed Romar Aviation to
store the aircraft on thier premisis, because of all the
games that Lancaster Aviation, of which Stan Caterbone
suspected foul play on many previous ocasions.
************************************************************
TI=\PLANNER SCHEDULE OF S. CATERBONE RE: J. RODA
IM= 106P01.CPR
DA= July 3, 1987
PA= PAGES:
1
SU= SUMMARY: Planner of Stan Caterbone referring to the second
day of meetings and conferences with Joe Roda. On July
3rd at apporximately 2:00pm Stan Caterbone had loaded
all relevent files and copies in his aircraft, in
preparation for the flight to Cape May County Airport NJ.
Stan Caterbone had rented a home in Stone Harbore, with
specific intent during the production of "Mutant Mania".
At apporximately 9:00pm, Stan Caterbone was in Stone
Harbor when Victor, the pilot from Romar Aviation, called
to inform that the aircraft had been repossed with the fe
************************************************************
TI=\PLANNER SCHEDULE OF S. CATERBONE RE:PLANE REPOSESSION
IM= 107P01.CPR
DA= July 4, 1987
PA= PAGES:
1
SU= SUMMARY: At approximately 9:30am, Stan Caterbone had called
Joe Roda from Stone Harbor, quite upset and historical
about the plane that was illegally repossed with all of
Page 79

his files conviniently held hostage.
Joe Roda had replied "Stan you have to quit making up
these allegations"!!!!!
Stan Caterbone proceeded to the Cape May County Airport
to hire a pilot to fly to Lancaster to retrieve the files
************************************************************
TI=\RECIEPT FROM PILOT BRAD DONAHUE FOR RESCUE OF FILES
IM= 108P01.CPR
DA= July 4, 1987
PA= PAGES:
1
SU= SUMMARY: In efforts to thwart a cover up, Stan Caterbone
retained the services of pilot Brad Donahue, of Capy May County
Airport to fly to Lancaster Aviation, in the Lancaster
Airport, to retrieve the files that were merely stolen
and held hostage in Stan Caterbone's airplane. The
reciept, signed by Brad Donahue, is for $400.00. Stan
Caterbone had offered Brad Donahue $200.00 if he did not
have any confrontations, and $400.00 if there were any
confrontations with Lancaster Aviation or authorities.
Brad Donahue died a few weeks later due to a suspect accd
************************************************************
TI=\PLANNER SCEDULE OF S. CATERBONE RE: ATTY. RIC FOX
IM= 109P01.CPR
DA= July 5, 1987
PA= PAGES:
1
SU= SUMMARY: Stan Caterbone had called Ric Fox in efforts to take
legal actions agains all alleged defendants. Ric Fox had
brought an attorney friend and flew into Cape May County
Airport, where they were picked up by David Porter and
driven to the residence of Stan Caterbone, 554 Berkley Rd
Stone Harbor, NJ. After Stan Caterbone discussed and
described the circumstances surrounding the last 7 days,
Ric Fox asked "What did they do wrong?". Upon leaving
he requested a retainer of $5,000 to look further into
matters.
************************************************************
TI=\COMMONWEALTH BANK NOTICE OF PLANE REPOSESSION
IM= 110P01.CPR
DA= July 6, 1987
Page 80

PA= PAGES:
SU= SUMMARY: The letter from Larry W. Snyder, Manager of

Conusmer Loan Collections, of Commonwealth National Bank,
to Stan Caterbone, informing him of the repossesion
of his airplane, that took place on July 2, 1987, as
they confirm. There were no reasons for the reposession
that were the least bit true, and even furthermore,
was the fact that it was 23 days prior to the first
scheduled payment of the loan agreement signed on
June 12, 1987 that included $27,000 in cash paid to
Lancaster Aviation.
IM= 110P02.CPR
DI= PAGE 02
IM= 110P03.CPR
DI= PAGE 03
************************************************************
TI=\PLANNERS SECURITIES TERMINATION LETTER
IM= 111P01.CPR
DA= July 8, 1987
PA= PAGES:
1
SU= SUMMARY: Letter from Kathy A. Diehl, Registration Administrator
of the Planner's Securities Group, Inc., of Atlanta GA,
advising Stan Caterbone that his license with PSG, INC.,
has been terminated, and may no longer sell securities
with the Broker Dealer that Stan Caterbone selected to
merge with FMG, Ltd.,. The letter was copied to Robert
Kauffman. Stan Caterbone never recieved any explanations
as to the reasons for terminating his securities license,
which was as clean as his credit report, which was as
good as you can have.
************************************************************
TI=\PLANNER LOG RE: GAMILLION STUDIOS, CAPELLO & FOLEY
IM= 112P01.CPR
DA= July 8, 1987
PA= PAGES:
1
SU= SUMMARY: The planner schedule for July 8, 1987, which displays
the phone log of Stan Caterbone. Stan Caterbone had called
Bill Koegler of the Planners Securities Group, Inc., to
inform him of the Lock-Out by Robert Kauffman and Mike
Hartlett, of FMG, Ltd.,. Stan Caterbone was not very
understanding, and had questioned Bill Koegler if he
Page 81

was helping Robert Kauffman steal his company. Bill
Koegler responded with the terminating Stan Caterbone's
securities license with the Planners Securities Group.
************************************************************
TI=\PLANNER SCHEDULE RE: JOHN RODA
IM= 113P01.CPR
DA= July 9, 1987
PA= PAGES:
1
SU= SUMMARY: Phone log of July 9, 1987, of Stan Caterbone. Stan
Caterbone was refferred to another attorney, Lew
Schweller, of the law firm of Valore, McAllister,
Westmoreland, Gould, Vesper & Schwartz. Stan Caterbone
had called to set up a meeting, since all previous
efforts to pursue legal action had done nothing but cost
money and aggrevation. John Roda, brother of attorney
Joe Roda, had called Stan to advise him to take it easy
and to seek medical help, most likely at the request of
Joseph Roda.
************************************************************
TI=\PLANNER SCHEDULE RE: TONY BONGIOVI MEETING @ WILDWOOD
IM= 114P01.CPR
DA= July 10, 1987
PA= PAGES:
1
SU= SUMMARY: The planner schedule exhibits a meeting between
Stan Caterbone and Tony Bongiovi for July 10, 1987. Stan
Caterbone was trying to desperately keep any business
actiivities that he had in tact. However, the allegation
of insanity has reached virtually all of his business
contacts and network.
************************************************************
TI=\W. UMIKER TRUSTEE TERMINATION
IM= 115P01.CPR
DA= July 10, 1987
PA= PAGES:
2
SU= SUMMARY: Notices to Stanley J. Caterbone, from Dr. and Mrs.
William Umiker canceling the Trust Agreements dated
October 17, 1986 which had designated Stanley J.
Caterbone as Trustee and Robert F. Kauffman as
Alternate Trustee. Again, Stan Caterbone had never
Page 82

learned why such action was taken.
IM= 115P02.CPR
DI= PAGE 02
************************************************************
TI=\HARSCO PENSION PLAN DOCUMENTATION
IM= 116P01.CPR
DA= July 13, 1987
PA= PAGES:
7
SU= SUMMARY: A note and information from Robert O. Ackerman of
the Mesirow Brokerage Services, Inc., regarding Stan
Caterbone's efforts at providing management services for
the $141 Million Pension Plan of Harco, of Harrisburg PA.
The pension fund was paying out over $350,000 in annual
management fees, of which Stan Caterbone was competing
for.
IM= 116P02.CPR
DI= PAGE 02
IM= 116P03.CPR
DI= PAGE 03
IM= 116P04.CPR
DI= PAGE 04
IM= 116P05.CPR
DI= PAGE 05
IM= 116P06.CPR
DI= PAGE 06
IM= 116P07.CPR
DI= PAGE 07
************************************************************
TI=\HARSCO PENSION PLAN REPORT OF EXAMINATIONS
IM= 117P01.CPR
DA= July 13, 1987
PA= PAGES:
6
SU= SUMMARY: The Report on Examinations of Financial Statements
for the Harsco Pension Fund. The report gives a detailed
accounting of all Pension funds, along with performance
results. This report was supplied by Michael Dipaolo
of while employed by Coopers & Lybrand, of Harrisburg, PA
IM= 117P02.CPR
DI= PAGE 02
IM= 117P03.CPR
DI= PAGE 03
IM= 117P04.CPR
Page 83
DI=
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PAGE 04
117P05.CPR
PAGE 05
117P06.CPR
PAGE 06
************************************************************
TI=\SOLFOLK LIBRARY RESEARCH MATERIALS RE:LENDER LIABILITY

IM= 118P01.CPR
DA= July 15, 1987
PA= PAGES:
6
SU= SUMMARY: On July 14, Stan Caterbone and Michelle Hodge,
persoal friend, and one of few persons to believe Stan Caterbone
traveled to Boston, MA. Stan Caterbone had decided that
Boston would offer one of the better Law Libraries for
research, and would provide for a nice trip to get away
from all of the conspiracy going on. Stan Caterbone had
conducted research on the topic of lender liability, and
specifically the circumstances which constitute fair
play, illegal repossesion, and anti trust with specific
his mortgage banking business. Enclosed are samples.
IM= 118P02.CPR
DI= PAGE 02
IM= 118P03.CPR
DI= PAGE 03
IM= 118P04.CPR
DI= PAGE 04
IM= 118P05.CPR
DI= PAGE 05
IM= 118P06.CPR
DI= PAGE 06
************************************************************
TI=\KUAFFMAN LETTER TO BILL JOHNSON RE: S. CATERBONE
IM= 119P01.CPR
DA= July 16, 1987
PA= PAGES:
1
SU= SUMMARY: Robert Kauffman had sent a letter to Millard Johnson,
as well as all of the clints of Stan Caterbone. Robert
Kuaffman had alleged that Stan Caterbone will not be
servicing Financial Management Group, Ltd., clients in
the Lancaster area, and "may not handle investments
at all". Robert Kauffman had also reported that Stan
Caterbone had moved his office to Stone Harbor, NJ.
Page 84

Stan Caterbone has yet to learn motivation for such
incriminating statements, that could be construed as
freud in and of themselves.
************************************************************
TI=\NASD-SEC PHONE LOG FOR HELP
IM= 120P01.CPR
DA= July 17, 1987
PA= PAGES:
2
SU= SUMMARY: Phone log of Stan Caterbone, for the date of July
16,1987 After receiving the letter from Millard Johnson, relating
to lies that Robert Kauffman was telling the clients of
Stan Caterbone, Stan Caterbone proceeded to call the
Federal and State Authorities of the Securities and
Exchange Commissions. As with the attorneys, Stan
Caterbone recieved no help, and on the contrary recieved
more ridicule and suspicion than anything.
IM= 120P02.CPR
DI= PAGE 02
************************************************************
TI=\SCHWELLER INVOICE FOR LEGAL FEES
IM= 121P01.CPR
DA= July 17, 1987
PA= PAGES:
2
SU= SUMMARY: Invoices from attorney Lew Schweller, of the law firm
Valore, McAllister, Westmoreland, Gould, Vesper &
Schwartz.
IM= 121P02.CPR
DI= PAGE 02
************************************************************
TI=\PLANNER SCHEDULE RE: GAMILLION STUDIOS MEETING
IM= 123P01.CPR
DA= August 20, 1987
PA= PAGES:
1
SU= SUMMARY: The planner oulines Stan Caterbone's meeting with
Marcia Silen, of Flatbush Films, Ted Gamillion, of
Gamillion Studios, and Becky Austin, of Arlington
Properties, all of surrounding Hollywood, CA. Stan
Caterbone had traveled to Hollywood and had conducted
meetings with the above induviduals. Becky Austin
Page 85

was interested in developing a mortgage banking business.
Ted Gamillion was interested in having Stan Caterbone
restructure and refinance his film and sound studio.
Even 3,000 miles away, the efforts proved to be fruitless
************************************************************
TI=\GAMILLION STUDIOS FINANCIAL DOCSUMENTS (CENSORED)
IM= 124P01.CPR
DA= July 20, 1987
PA= PAGES:
4
SU= SUMMARY: A sampling of the documents that Ted Gamillion of
Gamillion Studios had given to Stan Caterbone during his
visit of July 20, 1987 to support his efforts to
restructure and refinance Gamillion Film & Sound Studios.
Stan Caterbone and Marcia Silen had spent several hours
touring and inspecting the studios and its business
activities. The alleged allegations had eventually
traveled as far away as Hollywood, CA. This was the
last attempt to conduct any kind of business.
IM= 124P02.CPR
DI= PAGE 02
IM= 124P03.CPR
DI= PAGE 03
IM= 124P04.CPR
DI= PAGE 04
************************************************************
IM= 125P01.CPR
DA= July 20, 1987
PA= PAGES:
1
SU= SUMMARY: Invoices from attorney Lew Schweller, of the law firm
Valore, McAllister, Westmoreland, Gould, Vesper &
Schwartz.
************************************************************
TI=\CAPPELLO & FOLEY RECIEPT FOR MATERIALS
IM= 126P01.CPR
DA= July 21, 1987
SU= SUMMARY: Invoice dated July 21, 1987 from Joan M. Tornes, of
the law firm of Cappello & Foley, for 3 binders of documents
which Stan Caterbone had personally delivered to the
offices at 831 State Street, Santa Barbara, CA.
Cappello and Foley were discovered during the research on
Page 86

Lender Liability, as being one of the more prominent
firms to specialize in Lender Liability. Stan Caterbone
was especially abouth the activities of Commonwealth Bank
considering the Olde Hickory refinance, and also Fulton
and Farmers First.
************************************************************
TI=\RODA INVOICE FOR LEGAL FEES
IM= 127P01.CPR
DA= July 22, 1987
PA= PAGES:
3
SU= SUMMARY: Invoice from attorney Joseph Roda, for services from
July 1, 1987 through July 7, 1987, which included the
phone conversation in which Joseph Roda accused Stan
Caterbone of farbricating any and all allegations.
IM= 127P02.CPR
DI= PAGE 02
IM= 127P03.CPR
DI= PAGE 03
************************************************************
TI=\TITLE:
SOURCE CAPITAL LETTER RE: BENNET WILLIAM SYNDICATION
IM= 129P01.CPR
DA= July 24, 1987
PA= PAGES:
10
SU= SUMMARY: A letter to Jim Bly, of Source Capital, of McLean VA
from Stan Caterbone along with the sydication deal for
the Bennett Williams project. Dave Cook and previously
expressed interest in the project, however a few days
prior, Dave Cook had informed Stan Caterbone that it
"would be better if I did not associate with you". Stan
Caterbone was about all out of business contacts that
were not convinced that he embezzled monies and was
insane.
IM= 129P02.CPR
DI= PAGE 02
IM= 129P03.CPR
DI= PAGE 03
IM= 129P04.CPR
DI= PAGE 04
IM= 129P05.CPR
DI= PAGE 05
IM= 129P06.CPR
DI= PAGE 06
Page 87
IM=
DI=
IM=
DI=
IM=
DI=
IM=
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129P07.CPR
PAGE 07
129P08.CPR
PAGE 08
129P09.CPR
PAGE 09
129P10.CPR
PAGE 10
************************************************************
TI=\HARTLETT LETTER TO CREDITORS RE: S. CATERBONE

IM= 130P01.CPR
DA= July 24, 1987
PA= PAGES:
1
SU= SUMMARY: Letter from Michael Hartlett, Executive Vice President
of FMG, Ltd., to Oblenders, of Lancaster PA informing
Oblenders that "Stanley J. Caterbone is no longer an
officer of our corporation." "He was removed as
Executive Vice President on July 1, 1987". "This letter
serves notice that Stanley J. Caterbone never has had the
right to: 1) Purchase items for or through FMG.
2) Make Corporate commitments on behalf of FMG
3) Contract for or any way obligate FMG Ltd."
A third grader would be smarter than this.
************************************************************
TI=\SHIRK LETTER RE: BANKRUPTCY MATERIALS
IM= 131P01.CPR
DA= August 5, 1987
PA= PAGES:
2
SU= SUMMARY: A letter from Dore Valvanes, of the law firm of Shirk
Reist, Wagenseller, and Shirk, of Lancaster PA to Stan
Caterbone in reference to a conversation held on the
same day of August 5, 1987. The letter indicates that
bankruptcy should be seriously considered as an
an alternative. In the letter, Dore Valvanes also gives
several reasons why the law firm of Shirk, Reist,
Wagenseller, and Shirk would rather not get invoived.
IM= 131P02.CPR
DI= PAGE 02
************************************************************
TI=\BILL TELL FAX REQUESTING DAT PURCHASE FROM JAPAN
IM= 132P01.CPR
Page 88

DA= August 5, 1987
PA= PAGES:
1
SU= SUMMARY: A copy of a fax from Stan Caterbone, while in Stone
Harbor NJ, to Bill Tell, client of FMG, Ltd., while
in Osaka, Japan. Bill Tell is the owner and president
of PDQ Industries, of Brownstown PA. The fax was to
inform Bill Tell of the Gamillion Studios refinancing.
It was thought that the project might even have more
appeal with the Japanese. Stan Caterbone also requests
the purchase of an R-DAT digital Recorder, for the
Studio.
************************************************************
TI=\COMMONWEALTH BANK SETTLEMENT RE: PLAN REPOSESSION
IM= 133P01.CPR
DA= August 7, 1987
PA= PAGES:
1
SU= SUMMARY: A letter to Stan Caterbone from John M. Wolf, Vice
President of Commonwealth National Bank, A Mellon Bank.
The letter refers to a telephone conversation between
Stan Caterbone and Mr. Irwin H. Siegel, Consumer Loan
Manager, of Commonwealth Bank regarding Stan Caterbone's
demand for a settlement of $5 Million for the numerous
lender liability violations suffered while the aircraft
was illegally repossesed. The demand was rejected
because "we are satisfied that the reposession was both
lawful and appropriate".
************************************************************
TI=\CREDIT REPORT OF S. CATERBONE IN AUGUST OF 1987
IM= CR1.CPR
DA= August 7, 1987
PA= PAGES:
1
SU= SUMMARY: A copy of the Credit Report that Stan Caterbone had
requested from Kelly Walters, of the Credit Bureau of
Lancaster County, Inc.,. Stan Caterbone was tired of
hearing all of the alleged bankrupty rumors, so he wanted
to document his actual credit rating. The Credit Report
was recieved August 7, 1987, and was considered valid
until the same. The Credit Report was absolutely
flawless, reporting that all accounts were "Pays
(or paid) within 30 days of billing, pays accounts as
Page 89
IM=
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agreed".
CR2.CPR
PAGE 2
CR3.CPR
PAGE 3
CR4.CPR
PAGE 4
************************************************************
TI=\MMPI EVALUATION
IM= 135P01.CPR
DA= August 7, 1987
PA= PAGES:
8
SU= SUMMARY: In efforts to rescind the allegations of insanity that
everyone was blatenly accusing Stan Caterbone of
posessing, Stan Caterbone had selected a Psychiatrist
from the Yellow Pages of the telephone book. He chose
Dr. Marshall Levin, of Northfield, NJ. The documents are
a sampling of the 530 question test that Dr. Levine used
to evaluate the mental state of mind of Stan Caterbone.
This meeting was conducted at 554 Berkley Road, Stone
Harbor, NJ. The test was an exercise in futiity. Dr.
Levine had ruled Stan Caterbone mentally ill.
IM= 135P02.CPR
DI= PAGE 02
IM= 135P03.CPR
DI= PAGE 03
IM= 135P04.CPR
DI= PAGE 04
IM= 135P05.CPR
DI= PAGE 05
IM= 135P06.CPR
DI= PAGE 06
IM= 135P07.CPR
DI= PAGE 07
IM= 135P08.CPR
DI= PAGE 08
************************************************************
TI=\FMG, Ltd., CRIMINAL ARREST THREAT TO S. CATERBONE
IM= 136P01.CPR
DA= August 10, 1987
PA= PAGES:
2
SU= SUMMARY: A letter to Stan Caterbone from the "Board of
Page 90

Directors" of FMG, which was actually signed by Robert Long. The
letter alleges the following: that Stan Caterbone is in
debt; that any future sale of his stock will be reduced
by the build up of any future debt; that any stock sale
will be reduced "by the time and costs in dealing with
either guardians or your pending bankruptcy"; and finally
FMG threatens criminal charges for attempted embezzlement
burglery, employee theft, with a long prison term. Also
the filing of the preceding charges has nothing to do wih
IM= 137P02.CPR
DI= PAGE 02
************************************************************
TI=\TITLE:
KAUFFMAN LETTER TO S. CATERBONE RE: SHUT-OUT
IM= 137P01.CPR
DA= August 10, 1987
PA= PAGES:
1
SU= SUMMARY: A letter to Stan Caterbone from Robert Kauffman
advising Stan Caterbone that Robert Kauffman and other FMG
management will "not personally discuss any matters
regarding your past affiliates and stock proposal with
our firm".
************************************************************
TI=\INVOICE FOR CAR PHONE INSTALLATION
IM= 138P01.CPR
DA= August 11, 1987
PA= PAGES:
1
SU= SUMMARY: The invoice is for the installation of a car phone in
the Volkswagen of Stan Caterbone. Warcom Inc., of
Absecon, NJ. While driving home, Stan Caterbone had
called Mary Lynn Dipaolo, who made numerous allegations
pertaining to his mental condition. Stan Caterbone had
told Mary Lynn Dipaolo that he was going back to
Hollywood to try to work on the Gamillion Studios deal.
In the proceeding document, the psychiatrists refer to
having hallucinations about being a "Film Exec".
************************************************************
TI=\SUICIDE ALLEGATIONS, IMPROSONMENT, HOSPITALIZATION
IM= 139P01.CPR
DA= August 11, 1987
PA= PAGES:
10
Page 91

SU= SUMMARY: On August 11, 1987 Family members of Stan
Catebone had come to Stone Harbor to attempt to get Psychiatric help
for Stan Caterbone. In what turned into a heated and
excited confrontation, Stan Caterbone had ran block away
to the Stone Harbor Police Department in order to issue
a restraining order against the said family. In contrary
the Stone Harbor Police imprison Stan Caterbone, and take
him to the Berdette Tomlin Hospital, sirens and all and
admit Stan Caterbone on allegations that he "was going to
California to Kill himself, as did his brother".
Sources
have said that the phone call to the Stone Harbor Police was
was made by Jere Sullivan and/or Mary Lynn DiPaolo.
IM= 139P02.CPR
DI= PAGE 02
IM= 139P03.CPR
DI= PAGE 03
IM= 139P04.CPR
DI= PAGE 04
IM= 139P05.CPR
DI= PAGE 05
IM= 139P06.CPR
DI= PAGE 06
IM= 139P07.CPR
DI= PAGE 07
IM= 139P08.CPR
DI= PAGE 08
IM= 139P09.CPR
DI= PAGE 09
IM= 139P10.CPR
DI= PAGE 10
************************************************************
TI=\AVOLON POLICE DEPARTMENT ARREST RECORD
IM= 140P01.CPR
DA= August 14, 1987
PA= PAGES:
4
SU= SUMMARY: On the evening of August 14, 1987, persons again
invade Stan Caterbone's house in Stone Harbor and make repeated
questions and allegations insinuating that Stan Caterbone
had done something to get into such trouble, not to
his mental state of mind. Stan Caterbone had proceeded
to the Avalon Police Department in hopes of ordering a
restraining order, as he did with the Stone Harbor
Police, a few days earlier. However, on the way Stan
Caterbone was arrested for speeding, an completely dry
Page 92
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DI=

beer can under the seat, and a bottle of muscle relaxers.
140P02.CPR
PAGE 02
140P03.CPR
PAGE 03
140P04.CPR
PAGE 04
************************************************************

IM= 141P01.CPR
DA= August 18, 1987
PA= PAGES:
2
SU= SUMMARY: Invoice from attorney Lew Schweller for services up
to August 3, 1987.
IM= 141P02.CPR
DI= PAGE 02
************************************************************
TI=\BILL JOHNSON DEMAND NOTE WITH S. CATERBONE
IM= 142P01.CPR
DA= August 21, 1987
PA= PAGES:
1
SU= SUMMARY: A copy of the Confession of Judgement for the note
of $25,000 with Bill Johnson for the loan to Stan Caterbone
for the purchase of the aircraft. This note was paid in
full by July 31, 1988 by Stan Catebone.
************************************************************
TI=\KAUFFMAN LETTER RE: PATTERSON GUARDIANSHIP
IM= 143P01.CPR
DA= August 24, 1987
PA= PAGES:
1
SU= SUMMARY: A letter from Robert Kauffman to Millard Johnson
a message that Bill Jonson had left for Robert Kauffman.
Robert Kauffman had earlier tried to pursuade Bill
Johnson to provide testimony that the $25,000 that
Bill Johnson had had loaned to Stan Caterbone, was
actually monies that Bill Johnson had given to Stan
Caterbone to invest, and Stan Caterbone had actually
embezzeled the monies. Bill Johnson almost threw Robert
Kuaffman through the window. Robert Kauffman then told
Page 93

Bill Johnson that FMG was responsible for the debt.
************************************************************
TI=\LEGAL ISSUES PERCIEVED BY S. CATERBONE
IM= 144P01.CPR
DA= August 25, 1987
PA= PAGES:
14
SU= SUMMARY: Stan Caterbone had formalized legal actions against
all those that were obvious members of the conspiracy.
Notice should be taken that persons from FMG, Ltd, and
the banks have completely diverted attention away from
James Guerin and ISC.
IM= 144P02.CPR
DI= PAGE 02
IM= 144P03.CPR
DI= PAGE 03
IM= 144P04.CPR
DI= PAGE 04
IM= 144P05.CPR
DI= PAGE 05
IM= 144P06.CPR
DI= PAGE 06
IM= 144P07.CPR
DI= PAGE 07
IM= 144P08.CPR
DI= PAGE 08
IM= 144P09.CPR
DI= PAGE 09
IM= 144P10.CPR
DI= PAGE 10
IM= 144P11.CPR
DI= PAGE 11
IM= 144P12.CPR
DI= PAGE 12
IM= 144P13.CPR
DI= PAGE 13
IM= 144P14.CPR
DI= PAGE 14
************************************************************
TI=\SYDER FUNERAL HOME DEAL WITH SCOTT ROBERTSON
IM= 145P01.CPR
DA= August 26, 1987
PA= PAGES:
1
Page 94

SU= SUMMARY: A contract between Scott Robertson and Stan
Caterbone for the sharing of income recieved from the account
of the Chip Snyder & Associates Funeral Trust Accounts.
Chip Snyder and his family had recently vacationed in
Avalon, NJ. Chip Snyder was a friend of Stan Caterbone's
and was quite curious as to what was going on. Stan
Caterbone had described the real circumstances and events
and Doreen Snyder had actually begun to throw up after
hearing the truth. Scott Robertson in the middle of
trying to get Chip Snyder to transfer the account to FMG.
************************************************************
TI=\LETTER TO DIANE SAWYER OF 60 MINUTES BY S. CATERBONE
IM= 146P01.CPR
DA= August 28, 1987
PA= PAGES:
1
SU= SUMMARY: A letter to Diane Sawyer from Stan Caterbone in
efforts to recieve some kind of help regarding the conspiracy and
blackmail. By this time, all conventional methods of
pleading for help from local, state, federal, and even
legal authorities have been exhausted and have proven
fruitless, not to mention exhausting.
************************************************************
TI=\FEDERAL EXPRESS INVOICE TO 60 MINUTES
IM= 147P01.CPR
DA= August 28, 1987
PA= PAGES:
1
SU= SUMMARY: A Federal Express Invoice to Stan Caterbone
confirming the reciept of a letter delivered overnight to Diane
Sawyer of CBS 60 Minutes, accepted by D. Parker.
************************************************************
TI=\RODA INVOICE FOR LEGAL FEES
IM= 148P01.CPR
PA= PAGES:
1
SU= SUMMARY: A letter from attorney Joe Roda to Stan Caterbone
requesting payment for services rendered from July 1,
1987 to July 22, 1987. Mention was also made to the
copy charges advanced on the behalf of Stan Caterbone.
Joe Roda asked for the immediate attention of Stan
Page 95

Caterbone.
************************************************************
TI=\STATE POLICE PHONE DIRECTORY FOUND IN THE HOME OF S. CATERBONE
IM= 328.CPR
PA= PAGES: 1
SU= Upon the arriving home at 2323 New Danville Pike, Conestoga, PA, from
Stone Harbor, Stan Caterbone found notes that were left by Jim Warner.
Jim Warner was living in his house upon being transfered from New Jersey.
The notes contain the phone numbers of several state police departments;
including Avondale, Philadelpia, New Jersey, Delaware, and Pennsylvania.
It should be noted that James Warner was working on the Lancaster
County Waste Management Authority Incinerator Bond Issue. The attorney
representing Mr. Warner was Steven Spinello, the same attorney that
apparently negotiated the ISC -- Ferantti Merger & Acquisition, for
James Guerin, during the summer of 1987, and settled in November of '87.
Ironcially, the firm that was awarded the underwriting for the
Bond issue was Hopper Soliday, of which Gib Armstrong is an executive.
Gib Armstrong had sold Stan Caterbone the original ISC stock, while
working for Individual Securities. Stan Caterbone had also called
Gib Armstrong in July of 1987, pleading for help, and discussing the
circumstances regarding his "Blackmail". Gib Armstrong had said he
would call the Pennsylvania Attorney General's Office, of course he
never did anything.
James Warner also had called Tom Caterbone, brother of Stan Caterbone,
on or about December 16. 19901 to question whether Stan Caterbone was
taking his medication, and to insinuate that Stan Caterbone was again
having another relaps of his "alleged insanity".
This had occured
after Stan Caterbone had publicely acknowledged that it had come time
to resolve any and all related implications that had promugated from the
"Blackmail" of 1987. Stan Caterbone had also told Jim Warner on the
evening of December 12, 1990 that he was producing an interactive
CD-ROM disc that contained all relevent documentation and all recorded
conversations pertaining to the same.
************************************************************
TI=\MANHIEM TOWNSHIP CRIMINAL CHARGES
IM= 149P01.CPR
PA= PAGES:
1
SU= SUMMARY: Formal Criminal Charges of Terreoristic Threats filed by
Complaintant Detective Larry C. Siegler, of the Manheim
Page 96

Township (Political Subdivision) Police, Commonwealth of
Pennsylvania against Stanley J. Caterbone, Defendant.
A Criminal Complaint was filed on September 3, 1987 for
an alleged "Terrioristic Threat" that occured sometime on
September 1, 1987. It was so "Terrioristic" that it took
2 days to phone police, and June Kemper, who allegedly
took the call, could only recall the time between 9am-12p
************************************************************
TI=\MANHIEM TOWNSHIP CRIMINAL CHARGES II
IM= 150P01.CPR
PA= PAGES:
2
SU= SUMMARY: Formal Criminal Charges of Burglary, Criminal Mishief
and Theft and Use of Computer, Unlawful Restraining, and
Robbery, filed by Detective Larry Mathias, Criminal
Complaintant, of the Manhiem Township (Political
Subdivision) Police, filed by District Justice Murray
Horton, Magistrtate District 02-1-02 against Stanley J.
Caterbone. All charges against Stan Caterbone are in
essence and by Pennsylvania Securities and Contract Law
are charges for burglarizing his own leased property and
stealing his own corporate and business files.
IM= 150P02.CPR
DI= PAGE 02
************************************************************
TI=\PRISON RECIEPT FOR ARTICLES AT LANC. COUNTY PRISON
IM= 151P01.CPR
PA= PAGES:
1
SU= SUMMARY: The actual Prison Reciept of Stan Caterbone upon
being stripped of his clothing, and demanded to take a cold
shower, after which he already suffered a recurring
hyperthermia, after being "thrown" in the Manhiem
Township holding cell with little clothing, on a night of
already record low temperatures. Stan Caterbone was
denied any phone calls to attorneys or others for bail.
************************************************************
TI=\LANCASTER NEWSPAPERS REPORTS OF S. CATERBONE
IM= 152P01.CPR
Page 97

PA= PAGES:
SU= SUMMARY: "CONESTOGA MAN LINKED TO THEFT" and

"EX-WORKER CHARGED IN BURGLARY AT FIRM" were the reports
published in the Lancaster New Era, and the Lancaster Intelligencer
Journal, owned by the Steinman Family. Articles read as
follows: "A 29-year-old Conestoga man was arrested
Thursday night on charges that he erased information from
a Manhiem Township company's computers, stole files and
damaged equipment. Stanley J. Caterbone 29, of 2323 New
Danville Pike, was charged with burglary, theft, unlawful
use of a computer, criminal mishief and terroristic
threats. Detective Larry Mathias said the victim, Financail
Management Group, Ltd., 1755 Oregon Pike, lost an estimated
$60,000 as a result of Caterbone's actions. Caterbone allegedly
forced a cleaning person, Stacy L. Waters, 19, of Lititz, to
accompany him through the business during the crimes. He also
was served a warrent for terroristic threats in a case involving
employee of the company, was commited to prison in lieu of
$30,000 bail.
************************************************************
TI=\PRISON REQUESTS OF S. CATERBONE
IM= 153P01.CPR
PA= PAGES:
10
SU= SUMMARY: "General Purpose Request Form" used to make
requests in the Lancaster County Prison that Stan Caterbone used
during his stay from September 4, 1987 to September 9,
1987. The forms continue the quest by Stan Caterbone
to recieve additional clothing and medication due to the
extreme exposure to cold that the Manheim Township Police
and the Lancaster County Prison used as a means to
intimidate Stan Caterbone. Stan Caterbone also requests
guest priveledges for attorney Tim Lanza, attorney Jeff
Jamouneau, Mary L. Dipaolo, Bill Johnsons and Diane Sawyer.
IM= 153P02.CPR
DI= PAGE 02
IM= 153P03.CPR
DI= PAGE 03
IM= 153P04.CPR
DI= PAGE 04
IM= 153P05.CPR
DI= PAGE 05
IM= 153P06.CPR
DI= PAGE 06
Page 98
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=

153P07.CPR
PAGE 07
153P08.CPR
PAGE 08
153P09.CPR
PAGE 09
153P10.CPR
PAGE 10
************************************************************
TI=\OLD HICKORY REAL ESTATE APPRAISAL

IM= 154P01.CPR
DA= May 25, 1987
PA= PAGES:
14
SU= SUMMARY: The apraisal package submitted to Stan Caterbvone
from Norris Boyd of Boyd Wilson. The appraisal was performed on Olde Hickory
Properties, located on Orgon Pike. Noriss Boyd had requested a
proposal to refinance an existing mortgage held by Commonwealth National
Bank. Al Dannatt had traveled from Houston, Texas, to ispect the properties
for preliminary due diligence procedures. A propoas was officailly
submited for the procurement of approximately $5 million dollars. Noriss Boyd
had communicated to Stan Caterbone that the terms were more
favorable than those submitted by the Commonwealth National Bank, which
subsequently repossed his the Navojo Chieften aircraft, 23 days before the first
payment, at 9:30 pm on July 3, will all personal and business files on board!
IM= 154P02.CPR
DI= PAGE 02
IM= 154P03.CPR
DI= PAGE 03
IM= 154P04.CPR
DI= PAGE 04
IM= 154P05.CPR
DI= PAGE 05
IM= 154P06.CPR
DI= PAGE 06
IM= 154P07.CPR
DI= PAGE 07
IM= 154P08.CPR
DI= PAGE 08
IM= 154P09.CPR
DI= PAGE 09
IM= 154P10.CPR
DI= PAGE 10
IM= 154P11.CPR
DI= PAGE 11
IM= 154P12.CPR
Page 99
DI=
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DI=
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DI=
IM=
DI=

PAGE 12
154P13.CPR
PAGE 13
154P14.CPR
PAGE 14
154P15.CPR
PAGE 15
************************************************************
TI=\BAIL BOND FOR S. CATERBONE

PA= PAGES: 01
SU= SUMMARY: Copy of the Bail Bond, executed by Indiana
Lumbermans Insurance Company represented by Alfredo Marchio, of
529 Cherry St., Reading PA. The Bail was $20,000.00
or $1400.00 for the Surety Bond. The Bail was set up
by Mary Lynn Dipaolo. Stan Caterbone was transported
directy to the St. Joseph Hospital Mental Health Unit
BY Mike Caterbone, and Mary Lynn Dipaolo. The condition
for Stan Caterbone to get the Bail Bond, was that Stan
Caterbone must voluntarily admitt himself into the St.
Joseph Mental Health Unit, as confirmed by Robert Byers.
************************************************************
TI=\ST. JOSEPH HOSPITAL MENTAL HEALTH GUIDE
IM= 155P01.CPR
PA= PAGES:
7
SU= SUMMARY: A copy of the "Inpatient Mental Health Unit Patient
Guide". The guide also includes notes written by
Stan Caterbone that gives indications of guilt by
association.
IM= 155P02.CPR
DI= PAGE 02
IM= 155P03.CPR
DI= PAGE 03
IM= 155P04.CPR
DI= PAGE 04
IM= 155P05.CPR
DI= PAGE 05
IM= 155P06.CPR
DI= PAGE 06
IM= 155P07.CPR
DI= PAGE 07
Page 100

************************************************************
TI=\ST. JOSEPH HOSPITAL INVOICE
IM= 156P01.CPR
PA= PAGES:
1
SU= SUMMARY: A letter and copy of the invoice for the Hospital bill
of Stan Caterbone for $3,064.60 for the stay from
09/09/87 to 09/14/87.
************************************************************
TI=\LETTER TO CAPELLO & FOLEY
IM= 157P01.CPR
PA= PAGES:
1
SU= SUMMARY: A letter from Stan Caterbone, form Diane Campbell,
of law firm of Capello & Foley, Santa Barbara CA,
enclosing a copy of the newspaper articles of Stan
Caterbone's Criminal Charges, and sarcastically thanking
them for all of their help.
************************************************************
TI=\PENNSYLVANIA SECURITIES COMMISSION MEETING TRANSCRIPT
IM= 159P01.CPR
PA= PAGES:
27
SU= SUMMARY: A copy of the actual recorded transcript fron the
investigation of the Pennsylvania Securities and
Exchange Commission, conducted at 2323 New Danville Pike
Conestoga, PA. Howard Eisler conducted the meetings from
10:00am to 2:30pm. Stan Caterbone discusses all
circumstances and or events include Commonwealth Bank,
Manheim Township Police, Larry Mathias, Larry Siegler,
Joe Roda, Lancaster Aviation, Farmers First, Jeff
Jamouneau, Lancaster New Era, Kauffman, Hartlett, FMG,
Ltd., Loss, Long, Peneros, Robertson, Olde Hickory, Boyd.
DATE:
SEPTEMBER 29, 1987
TIME:
10:00 AM
PLACE:
RESIDENCE OF STAN CATERBONE

Page 101

2323 NEW DANVILLE PIKE
CONESTOGA, PA
17543
PERSONS:
<STAN CATERBONE> COMPLAINTANT

<ROBERT BEYER> ATTORNEY REPRESENTING STAN CATERBONE
<BILL JOHNSON> CLIENT OF STAN CATERBONE & FMG, Ltd.,
<HOWARD EISSLER> INVESTIGATOR FOR PENNSYLVANIA
SECURITIES COMMISSION
<STAN CATERBONE> I still am the minor one <HOWARD EISSLER> yes, the Financial Management
Group -there is about 50 names I am dealing with here
and they are all very similar so I have to be --- Financial
Management Group Ltd. filed for 202B exemption. Now
all the security sold in PA had to be registered. Some
securities are exempt but you have to apply the
detention type of thing. It is a registration, not a
registration that __________ so the 203D exemption was
filed for. Of course we have added the security
statement - explanation of where the money is going to
be spent, how it is going to be run, who runs the
corporation and all that sort of thing. Now under the
umbrella of this Financial Management Group there is a
whole (now I am repeating what is in the 203D which I
spent some time Friday reading) - there is about 15, 14 I guess under that there is about 5 other corporations
which are going to be an insurance agency, an
investment advising agency, a group <STAN CATERBONE> now a lot of these things have
not come about. Well we simplified it.
<HOWARD EISSLER> What do you mean simplified it?
<STAN CATERBONE> They are operating but because
of the accounting procedures they would have been a
nightmare with all those stubs.
<HOWARD EISSLER> So, they are operating <STAN CATERBONE> the only one that's separate
distinction is the IRA. Everything else is operating under
Financial Management Group Limited.
<HOWARD EISSLER> So these other corporations have
not really come into being.
Page 102

<STAN CATERBONE> Technically, legally, no.
<HOWARD EISSLER> I
application for an
selling securities
came in under your
seen also, I guess there is an

investment advisor. Now, if you are
or dealing with __________. Now that
name...
<STAN CATERBONE> at that time I was President,

<HOWARD EISSLER> but now there is another
application in that is being acted on now by somebody
else.
<STAN CATERBONE> There is?
<HOWARD EISSLER> I don't know who.
<STAN CATERBONE> Is that for the advisor?
<HOWARD EISSLER> Yes, the investment advisor.
<ROBERT BEYER> Do your current records in Harrisburg
indicate that he is still an executive with FMG?
<HOWARD EISSLER> Yes, because this offering
memorandum was given back last March I think, - last
August - when I initially did it. Oh, no, pardon me. We
are talking about two different things. You are talking
about your application for the investment advisor.
<STAN CATERBONE> No, I am talking about FMG - the
offering memorandum was done last August because
that's when I started raising the money. August of 1986
is when I did the initial filing for the offering
memorandum - the 144 Reg D. Coming up this October
is the 203D, 15 months after conception.
<HOWARD EISSLER> Alright, yea.
that is due a year after -
There is a report
<STAN CATERBONE> Right, that's what is coming up <HOWARD EISSLER> to explain how much money was
raised and where it was spent with the idea then of
protecting investors. The idea of the _________ your are
limited to like 35 investors. You can't sell to 105 - you
are limited. What the state does is comes in and says,
how are you going to raise the money in your offering
Page 103

memorandum. Then a year after it is raised, or a year
after _________ they come in and say, now what did you
do with the money. You raised 4 hundred and some
odd thousand, now how did you spend it? Now that has
not been filed yet.
<STAN CATERBONE> It is due, in fact I think it is
overdue. It is due October 20. I got the letter right here.
They just sent me the letter. You guys just sent me the
letter, I have it right here.
<HOWARD EISSLER> I have nothing to do with that
end of it. I just came, well whenever I called you _____
I didn't get a hold of you the next day; it was the
following day which was Friday that we made contact.
<ROBERT BEYER> Our idea in coming here was to let
you ask whatever questions you had in terms of the
investigation. Of my limited knowledge of the type of
securities these guys deal with and securities in general,
the things that came to interest me was the fact that
there are stock certificates in here in force with names
on them that ________, that there are with the annual
report, his name is forged by someone else.
This gentleman has some involvement with the original group
and the President suggested that he make false reports
to the bonding company so that he can get money back.
They are the three things that stuck out to me as a
regular criminal attorney, that I thought you might be
interest in because, but like I say, we are here to have
you ask questions of anything that you might.
<HOWARD EISSLER> O.K., this offering then - when
Financial Management Group limited applied for their
203D, I get the idea they were going to raise four
hundred and some odd thousand dollars. At that time,
they listed Bob Kauffman at 60,000 shares and you and
Hartlett 40,000 a piece. So, Kauffman at this point is the
main factor? Or, when I was talking to you, it was really
your idea that put this whole thing together.
<STAN CATERBONE> I put it all together. I brought
him up from Atlanta to be president because I have a lot
of business interests and I didn't want to be tied down to
the day-to-day operation. Plus, I never had any
management experience. Most of my work was
consulting, business deals, this and that, so I actually
Page 104

brought him up from Atlanta to be president.
<HOWARD EISSLER> And, Hartlett - is he a complete
local person. He's local.
<STAN CATERBONE> We all started together in IDS
back in 1982.
<HOWARD EISSLER> That's your connection with
Kauffman, you know him through IDS?
<STAN CATERBONE> He's the one that got me started
in business. I am the one who took him to FSC, that
was our broker/dealer and we started putting it together.
<HOWARD EISSLER> Are they registered as FSC?

<STAN CATERBONE> Yes, that's John Keegel.
<HOWARD EISSLER> This similarity in names is a
hassle; you are going to have to bear with me because
you throw these names out at me -----.
So then, you had the public offering which you were
going to sell another 120,000 shares and raise $435,000.
That would be in addition to what you people put in.
<STAN CATERBONE> We put in 20 grand a piece.
Well, we had 5 people. You were allowed 5
shareholders - so we put in 5. Five put in 100,000 <HOWARD EISSLER> five at 20,000 you mean?
<STAN CATERBONE> No, it was a little bit more than
that. Three of us put in 20; two put in 25.
<HOWARD EISSLER> What we are talking roughly is
one half million dollars?
<STAN CATERBONE> Right.
<HOWARD EISSLER> Financial Management Group
now is responsible for maintaining proper control over
that money and it would be invested as 5 - now I don't
know how many people <STAN CATERBONE> there is roughly 18-25 - that was
Page 105

sold as a result of the public offering.
<HOWARD EISSLER> I have that here.
<ROBERT BEYER> Do you mind if I look at it.
<HOWARD EISSLER> That's o.k. I went through a half
hour of frustration to get here. I wasn't running late until
I got caught in the ______. The way you described it, I
assumed it was going to be in the country and I knew...I
stopped at the Post Office. I said where is 2300 New
Danville Pike. I don't know. I was here on Friday and I
drove past it this morning. You'll bear with me then.
This is interesting. I've got about 40 shareholders.
this as a result of the 203 deal?
Is
<STAN CATERBONE> Yes.

<HOWARD EISSLER> Did you know about that. These
are all the ones that are forged by the other guys?
<STAN CATERBONE> No, no, just one is forged.
<HOWARD EISSLER> Now, you people were acting as
your own sales _________. Were those funds all
properly accounted for? Were they all collected and put
in the bank and the people received their stock
certificates.
<STAN CATERBONE> Uh, huh.
<HOWARD EISSLER> Who all would have been in
charge of that. Mainly me. I was in charge of just about
everything. Now, we have one-half a million dollars or
there about in the bank account.
<HOWARD EISSLER> Where?
<STAN CATERBONE> They never would show me the
book - my partners - never. They never showed anyone
the books to this day. I got shut out literally.
<HOWARD EISSLER> What brought that about?
<STAN CATERBONE> They were trying to take the
company from me from day one. I had too much power,
too much control. They wanted to cheat and be
Page 106

dishonest and I wouldn't. What happened was we had
to acquire an interest in a broker/dealer to assume our
equity, to realize our equity potential. So back in
January, we drummed up this deal with a broker/dealer
called Hibbard and Brown out of DC.
The deal was we were going to acquire 20% of their broker/dealer
in return for aligning our group with them. What I found
was - I went down there after about 3 weeks of them not
doing what we needed, I got scared. I had so much
money and time into this company. I went down there
myself and found an empty shell - nothing. Now, as a
corporate office, I know how liable I am, for everything,
personally. Then what I find out is that Hebron is a bornagain, just like Kauffman.
<HOWARD EISSLER> Oh, Kauffman is <STAN CATERBONE> yes. And, Hartlett is a Jehovah
Witness. I get pissed off, so I swing the whole board,
change everything and I line us with Planner's Security
Group in Atlanta - Bill Koegler. Now, in that group is
Wade Webster, Bill Carter - all the former IFP presidents.
ISP? International Association for Financial Planners - the
big guys. So, I swing everything around, turned the
whole board over, aligned up with them.
The day after I get back from Atlanta, Kauffman calls me into
his office and goes through this spiel with "I thought I was
president, who's running the company?" I said "I don't
care who runs it, it just got to be run right and for the
right reason". Two weeks later, I am in New Jersey
working on a movie and doing some things - I had my
lock changed in my office for security reasons. I find
that they have all these stock certificates and everything
that were in my office.
<HOWARD EISSLER> You had the locks changed?
You had them changed yourself, but they still got into
your office?
<STAN CATERBONE> I don't know how. They stole
my files. July 1, I went in and took all my files out of the
office and went to an attorney, Joe Roda, and explained
what happened. Nothing. I met with attorneys in New
York, New Jersey, Boston. I found all these security
violations and everything else, but no one could help me.
Then, about four weeks later, I called the SEC, the
Page 107

NASD, the FBI, the Attorney General, Senator, Governor,
everybody. And, they all think I am bluffing.
<BILL JOHNSON> Actually, they all thought he was
crazy.
<STAN CATERBONE> They all thought I was crazy.
And that was started because of Robert Kauffman.
That's what he did. The day after I went out and got my
files out, he spread rumors that I left the company, that
I was thrown out, that I was mentally unstable, that I was
spending money. At that same time, I get blackballed by
all the local lending institutions. They repossessed my
plane three weeks before my first payment, with the files
in it, of which a brother of the broker in FMG is one of
the lending officers. It gets ugly. That was before he
spent the 5 days in jail. I tried to get arrested. I had to.
<HOWARD EISSLER> Then after you were arrested,
you were in the hospital at St. Joseph.
<STAN CATERBONE> I was coerced into going there.
<ROBERT BEYER> No, that was my idea. I wanted him
in a place where we were going to satisfy the victim so
to speak, and the police at one point, that he would still
be able to work with them. In reality, he was in the
hospital but had his car in the parking lot. He was going
to play basketball and come back. He was not
committed. He was just there.
<STAN CATERBONE> I walked in to satisfy the
bail.
<HOWARD EISSLER> Are you on medication?
<STAN CATERBONE> No.
<HOWARD EISSLER> One of the police officers
mentioned to me that he was ___________ and that you
are alright now.
<ROBERT BEYER> Again, this might be one of these
stories coming from FMG.
<STAN CATERBONE> What Kauffman did was, back
when they started doing this I had a psychiatrist that was
my client. I was depressed. I mean they were making
Page 108

a fool out of me in public; they were firing people that
were very close to me for no reason other than they were
close to me. So I went to Al Schultz, a psychiatrist,
because I was depressed. Very normal, given the
environment I was thrown in after putting this big thing
together then having these guys slam it in my face, then
take all the credit for what I did.
He diagnosed me as having bipolar, depression. My father was
schizophrenic and my brother committed suicide two years ago.
reason he diagnosed that was because I was on a low,
and at previous times he thought I was on a high when
I put this company together. So, what I did was, three
weeks before July 1, this previous July 1, I told Kauffman
that I went to see a psychiatrist because of how
depressed I was because of what he and Hartlett were
doing. They fed on that, and tried to use that to use as
their alibi for what they have done to me.
<HOWARD EISSLER> Again, the way I am getting this I didn't know anything to start with - I just happened to
make inquiry at the police office and one said that you
were taken medication
<STAN CATERBONE> I was not. __________ See, that
was all started by Kauffman. He actually he had
meetings with my family to have me committed and take
guardianship over my assets so he could buy the stocks
from them at what ever price he felt like it.
<ROBERT BEYER> Incidentally, you may want to point
out that as late as mid-August of this year, Kauffman
wanted to buy you out for $2.50 a share or something
like that. We have that documented.
<STAN CATERBONE> Eight weeks prior to that, I was
working with the attorneys to do a 5 to 1 split. That
makes the stock worth $25. Either he is ripping me off
or he is ripping the people off who are paying $25 a
share.
<HOWARD EISSLER> The offering as you people had
it was 3 ______ prices. It was $5 a share. Was that
issue completely sold - that 120,000 shares?
<HOWARD EISSLER> Was the best part of it?
Page 109
The

<STAN CATERBONE> There was 4 hundred and some
thousand sold.
<HOWARD EISSLER> Did you buy any of that stock?
<STAN CATERBONE> No, I was in the organizational
sale.
<HOWARD EISSLER> You don't know how that money
is being accounted for now.
<STAN CATERBONE> I have the corporate books.
When I went in there June 30, I mean I was in there. I
mean it is not like I went in from the outside; I had a
plane and was flying back and forth for me. In fact, what
happened was, I was granted a 60-day leave of absence
late June with pay. Really, what I wanted to do was
meet with legal counsel and find out how I was going to
resolve all these problems that I was finding.
What happened was, in June I copied everything in that office
(June 30th), and I copied the books. You see, I
developed a computer system. So I just took one of the
copies - it was a big system. I've got the books. I don't
know how accurate they are because the way that the
guys kept the records, the accounting is all screwed up
too. I have an idea, but I found a lot of money going to
people that should not have been.
<HOWARD EISSLER> In what way?
<STAN CATERBONE>What they did was, there was a
lot of Jehovah Witnesses that were hired in that firm receptionist, cleaning, etc. Then what they did was
replace all the staff people that I brought in with their
own. Then, there was money going out to a fellow by
the name of Tom Turner in Minneapolis.
Now Tom Turner was the biggest divisional
was terminated by IDS in February because
convictions - another born-again. Then I
was making $750,000 a year with IDS and I
loaning him money?
manager in IDS.
of religious
find this guy
find FMG
<HOWARD EISSLER> Is that what they are going after in the form of loans?
Page 110
He

<HOWARD EISSLER> And, how much money are we
talking about going to Tom.
<STAN CATERBONE> 12-15 grand.
going to Kauffman's wife.
<HOWARD EISSLER> Large amounts?
a hundred dollars?
Then, I find checks
Are you talking
<STAN CATERBONE> No, a thousand here, $800 here.

<HOWARD EISSLER> FSC, which is a registered
broker/dealer, was an entity started by you?
<STAN CATERBONE> No. What happened was, back
in 1983 I had a dinner meeting - I was running the local
chapter of the IAFC - and I drummed up a business
meeting and had Alex Armstrong. Do you know who
Alexandria Armstrong is? Yea. She was one of the
most prominent financial planners in the company, a
woman from DC. I brought her up to speak and I told
her that I wanted to get out of the proprietary business.
She said, go talk to John Keeble FSC.
Now, this is when Kauffman, Hartlett, everybody was still at IDS.
So, I went an had a meeting at FSC in Atlanta. At this time,
Bob Kauffman was the Divisional Manager for IDS in
Atlanta. The next thing I know, I left; then he was hired
by FSC to be an officer and to run their sales force.
<HOWARD EISSLER> Then the idea of the company
you are forming up here is to invest other people's
money?
<STAN CATERBONE> No, it is a one-stop financial
entity - provides services in mortgage backing,
investment backing, insurance, real estate, taxes,
lending, portfolio management, everything. I had it
researched legally by a leading patent law firm in Phila.
It is definitely the most innovative in the country. There
is not a firm in the country offering all the services that
we offer.
<HOWARD EISSLER> Now, just up the street from your
place - _______________________. They are along that
line.
Page 111

<STAN CATERBONE> I mean big. We're talking an
office of 10,000 sq. ft. right here and 35 people; then we
travel all over the country. When I say offering services,
we have 2 attorneys in there, we have 2 realtors, 4
insurance people, a portfolio manager, 8 financial
planners, 5 brokers - I mean, in depth. Before I left, I
was working on mortgage banking. I had started a
mortgage banking operation and the minimal loan I wa
looking at was $3,000,000. I bet you I bid on
$150,000,000 in the first 6 months of 1987.
<HOWARD EISSLER> These were loans that you were
going to provide the people with?
<STAN CATERBONE> You bet. Where was those
funds going to come from? They were coming from the
largest biggest insurance companies, the largest pension
funds, and some of the largest banks.
<HOWARD EISSLER> O.K, you were going to be as a
mortgage banking type of thing.
<STAN CATERBONE> That is right.
<HOWARD EISSLER> You were not lending the money;
you were putting the lenders together with the borrowers
and you get a finders fee, or whatever.
<HOWARD EISSLER> Bill, how did you get into this?
You were an initial investor?
<BILL JOHNSON> No, I've been with Stan since he
started in business in 1982. I had come into some
money and I was investing. I had lent Stan some money
and things got really screwed up with _____ and all.
FMG told me that they were responsible for the money
because Stan was an officer of the company and that
they would ______________________.
Then, after several meetings with them, they more or less asked me
to say to the bonding company (that they took out after
June 30th of this year) - they wanted me to tell the
bonding company that I gave Stan the money to invest
for me and ________ with the funds, which I flat our
refused to do. As a matter of fact, I damn near punched
Page 112

Kauffman in the mouth when he was asking me to
commit a very serious crime.
<HOWARD EISSLER> Now, Kauffman's background, is
decent, is it not?
<STAN CATERBONE> Clean on paper. I mean he
worked for - clean on paper; there's a lot of people after
that man. What he did to FSC was, he was double
dipping. He was telling FSC that we were going to stay
with FSC the rest of our lives; in reality, he was telling
me that we were telling them what I wanted them to hear
that we were going to do our own broker/dealer so we
could obtain our own equity. And then, I find out that he
is receiving a salary from FSC up until February this year.
Plus, his salary is in violation of the offering
memorandum. Two weeks before I left, he had the
Board approve a salary of about 2-3 times what is in the
offering memorandum.
<HOWARD EISSLER> Maybe this is why the 203D they're dragging their feet on this.
<STAN CATERBONE> They don't know what to do. I
did all that legal work; they don't know how to do it.
<HOWARD EISSLER>This offering memorandum we
are talking about - I just copied this. This is just happens
to be page 9 and 10 because the type of information that
is in it. That is the only thing we do not have a copy
here of. Well, we have a copy in the office if you need
one. It is public information; there is no problem with it.
<STAN CATERBONE> So are the books public - I got
thrown in jail for trying to get them.
<HOWARD EISSLER> Well, we will try to resolve this;
it is not going to happen overnight.
Who is Kauffman connected with here.
<STAN CATERBONE> He called up everybody I know
and told them I left the company; told them I was
stealing money from clients; told them I was mentally
insane. I was doing business everywhere. I was doing
business with the Japanese; I was doing business with
the President of Sony; I was doing business with High
Page 113

at New York, Boston, Houston. Everybody all over the
country heard that I was insane. Everybody.
I've been 4 months without money. I haven't paid a bill since June
30. What do I do? No one believes me. I tried going to
the unemployment office. Do you know what they did?
When I was in the hospital, that was over $3,000. They
called up the insurance carried and told them to
terminate me - my hospitalization. I have nothing. The
only thing I have is what is in this house.
Well, Kauffman comes up here from Atlanta, and he's a
born-again Christian, so he comes together with a group
up here somehow. You see, he's hiring born-again
people... Jehovah Witnesses. Hartlett is a Jehovah.
There were more Jehovah Witnesses than there was
anybody.
<HOWARD EISSLER> But Hartlett was somebody you
brought in though, wasn't he?
<STAN CATERBONE> Well, what happened was I put
everything together. But would it not be right to say that
Hartlett would be your person as opposed to Kauffman's
person. Well, it is those two against me. They are the
two that are trying to take the company from me. See,
I controlled everything. Everyone went with what I said
because I did things that were right for business and
right for people. I treated people fairly and honestly.
People respected me more than anybody.
<HOWARD EISSLER> Did Kauffman in the initial
offering that you had, the preorganizational offering each of you put up $20,000 - did Kauffman put up 20?
<STAN CATERBONE> He got more stock; he never
paid the other 10 for the remainder of the shares. He
was supposed to put in 30 for his 50 - $.50 a share. The
three of you put in 20. Then, he had a back agreement
with me to sell me 10; so we both would have 50,000
shares. I got that contract and he never fulfilled that.
said no way are you getting more shares than me when
I put it together. I said you can be equal with me.
<HOWARD EISSLER> But how did that come about?
<STAN CATERBONE> We signed a back agreement so
Hartlett wouldn't get mad. I had to write to buy about
Page 114

10,000 shares from Kauffman, 50, to give us both 50 at
anytime at $.50 a share.
<HOWARD EISSLER> You have that agreement? Yes,
he never signed it after he got his 50. It was a bad move
on your part. There is nothing wrong with the idea but
do you think at that point he was conniving to do <STAN CATERBONE> he was conniving from day one.
When we put this thing together, I was in the middle
constantly between Kauffman and Hartlett. In fact, at
one time Kauffman was going over an idea - this was
over a year ago before we moved into the office - about
how he could set Hartlett up to get him out. Then, when
he couldn't get Hartlett out then the two of them tried to
get me out.
<HOWARD EISSLER> Now, everything is in place and
it is operational? But obviously you have a lot of
contacts to make this thing go.
<STAN CATERBONE> I'm out. I haven't talked to
anybody? But you did have initially.
<HOWARD EISSLER> You already made them and they
now have the <STAN CATERBONE> yea, I spent 5 years.
<HOWARD EISSLER> But now they've picked up your
contacts really, so to speak?
<STAN CATERBONE> Exactly right. They are acting as
mortgage bankers, etc. The whole bit - everything I put
into place, they just stole away from me. See, I never
communicated with people. I couldn't, only because I
couldn't find competent legal counsel to tell me what to
do. All they did, was send me bills. I didn't even want
to send a letter to everyone explaining the situation until
I got a competent legal counsel to tell me what is right,
what is wrong, and what to do. I went to 3 attorneys and
they tell me there is no violation - and I'm in jail for 5
days for what they did to me 3 months previous.
<ROBERT BEYER> Even according to FMG, Stan was
with the company until July 1,
<HOWARD EISSLER> is that right?
Page 115

_________________
<ROBERT BEYER> Here are 2 certificates, June 25th,
signed by Bob Long, Secretary.
<STAN CATERBONE> I was the Secretary, I was a
Board Member. And, this is April 24th, 1987 SemiAnnual Report in which someone - forged my name. I
never even saw that. They never even had an Annual
Shareholder's Meeting; they never let people examine
the books that have wanted to.
<HOWARD EISSLER> Of course, all of this would boil
down to their getting money from somewhere, extracting
money. Either they are cheating somebody and putting
it in their pockets or taking exorbitant salaries - is
business that good that it could stand that?
<STAN CATERBONE> We are paced to do $4,000,000
GCI (Gross Commission Income) a year, that's a lot of
money passing through your hands.
<HOWARD EISSLER> Now the people that are
____________, doesn't it affect those people?
skeptical of what's happening?
Are they
<STAN CATERBONE> I have no idea. I know the

clients that I have talked to to, that came down from New
Jersey to find out what really went on ran the other way
as soon as they talked to me. In fact, one woman got
so sick, she went downstairs and threw up when I told
her.
<HOWARD EISSLER> Well, you know the corporation,
regardless of what the situation is when there is a
problem like this with you, or anyone, the corporation
has to continue to function? The fact that somebody has
signed your signature to a financial management semiannual report, I don't know if that is a security violation,
in that end of it. If it would be corporate law, it may be,
but not at the security end of it.
<STAN CATERBONE> Well, someone changed my
address. Who knows who gets my mail? I never
changed it.
<HOWARD EISSLER> From where?
Page 116

<STAN CATERBONE> From 1755 Oregon Pike, FMG.
It goes here; it goes down to New Jersey. I never did it;
who did it. They go through all my mail - open all my
mail, then send it to me in bunches 10 days later.
<HOWARD EISSLER> This is the Financial
Management Group that does this? Of course, it is
coming to you as one of the principals in the
corporation, and if it comes in from their standpoint, they
wouldn't know if it had to do with corporate business or
your business personally. The fact that they opened it
may not be ethical, but I don't know that -.
<STAN CATERBONE> If you change my address, that
is forgery. You got to go to the Post Office and sign to
change an address, don't you?
<HOWARD EISSLER> Well, I don't know.
longer associated with them -
If you are no
<STAN CATERBONE> who says, I am no longer

associated with them.
<HOWARD EISSLER> The Post Office doesn't know
that. If somebody comes in and says you are no longer
here, you're over there - I don't know that the Post Office
<STAN CATERBONE> somebody there should not have
done it. These are things that show this is not fabricated or
something; they are actually happening. I got so
desperate I already wrote 60 Minutes.
<HOWARD EISSLER> How much money are we
talking?
<STAN CATERBONE> Millions.
<HOWARD EISSLER> That they have taken?
<STAN CATERBONE> I was Executive Producer of the
first digital movie ever, in the world. I was to get 40% of
the profits. I could have made 100-200 million dollars.
I was ready to do a deal with the owner of Turkey Hill.
I was supposed to receive a check in July for $200,000;
after he heard the rumor, he backed off.
<HOWARD EISSLER> How much have they
Page 117

squandered?
<STAN CATERBONE> How do I know?
their books.
I can't get at
<HOWARD EISSLER> These stock certificates that you

__________ Scott Robertson, for instance, bought
42,000 shares. Stock certificates wouldn't _____________ In June of 1987, he bought 2,000 shares
of stock. Now the signature that is forged on yours is
the secretary. It should have been yours, but there is
nothing wrong with the certificate as such - aside from
the secretary signing the certificate?
<STAN CATERBONE> There is something shady about
that stock deal too. You see this is a year, not quite a
year.
<HOWARD EISSLER> Would this be part of the of 203
offering?
<STAN CATERBONE> Yes, everything is.
part of the 203D.
All stock is
<HOWARD EISSLER> What I am saying is, Scott

Robinson bought the 2,000 at $5 a share or whatever; he
put up $10,000 and he was entitled to get a certificate.
If you weren't there to sign it Telephone call - someone for Bob Kauffman
If Scott Robinson put up the money and Peter
Ponderose put up 8,000 shares, if he paid $5 a share <STAN CATERBONE> they didn't pay $5; they paid
$2.50.
<HOWARD EISSLER> Regardless, they were entitled to
the shares. If they can't get at you to sign the shares <STAN CATERBONE> why couldn't they get me?
in that office.
I was
<HOWARD EISSLER> Oh, you were still there in June.

Even according to them.
<HOWARD EISSLER> When were you actually locked

out? July 1. That's when I went in there and took my
Page 118

files, when I found out they were doing that.
<STAN CATERBONE> Because they only way they
could get the certificates was to break into my office,
because I had them.
<HOWARD EISSLER> You had the stock certificate
book?
<STAN CATERBONE> Yes, I did everything - they didn't
even know how to do any of that stuff. That's how I
caught them. I knew the law because I did it. I did the
memorandum and everything.
<HOWARD EISSLER> The thing that is wrong with
these certificates basically is the fact that Long is signing
as secretary and at that point, on the 25th of June,
you're the secretary. As far as we know, these things
could have really been negotiated at the end of July and
backdated. I am not trying to beat you down.
<STAN CATERBONE> I got them July 1 - my attorney
copied them for me. That's how I got those copies.
<HOWARD EISSLER> What you are saying, prior to
your being locked out of this place, they were already
bypassing you. They found out that I was talking to an
attorney. Now what would they be afraid of when you
were talking to the attorneys. What they were doing. Of
course, they do have control of the corporation between Hartlett and <STAN CATERBONE> I did, I controlled the Board.
That is why they threw me out. When I made a decision,
the Board followed it. But now, they are gaining control
of the Board. I have no idea. I have never heard of a
Board Meeting.
<HOWARD EISSLER> Who is on the Board of
Directors?
<STAN CATERBONE> Me, Bob Kauffman, Mike Hartlett,
Bob Long and Alan Loss.
<HOWARD EISSLER> I heard those names; I can't
remember where. They were the signatures on the semiannual report. Is Long a born-again Christian.
Page 119

<STAN CATERBONE> No, he is the accountant who
hired from Main Herdman.
<STAN CATERBONE> Were you a party to hiring all of
these. Everybody. Pete Peneros was terminated by
Shearson and I was the only person in time to give him
a job. He already had some trouble with the NASD. He
was suspended; it took about 5 months just to get him
relicensed - they had charges against him, allegations forgery - in fact what he did in June was he went and
used another persons rep number at FSC to do options
trading and that person supposedly reported him, or
wanted to report him - Dick Sherbach.
<HOWARD EISSLER> Is he from Lancaster? <STAN CATERBONE> Greek.
<HOWARD EISSLER> But he is from Lancaster?
<STAN CATERBONE> Yes, but he was working in
Harrisburg at Shearson. They fired him in November.
<HOWARD EISSLER> I saw his name but I can't
connect it. So many names came up as a result of this I'm sort of swimming trying to get everybody straight.
It's not easy, believe me. Time is one thing that I have
a lot of <STAN CATERBONE> so do I.
what can I do?
I can't do anything else,
<HOWARD EISSLER> Did you ever hear of a _____ or

_______ organization? Some years ago, there was
some outfit - New Environmental Technology Remember when that was floating around. They had a
big shindig down at the Strasburg Inn. A lot of people
from New York came in. The whole thing fell through
although Environmental Technologies are is a local
corporation in business and they were trying to merge
with ___________ Shell Corporation out of New York.
<STAN CATERBONE> I am not familiar with it.
<HOWARD EISSLER> Again, it was a lot of born-again
people that would meet; they would push on the idea
that all things stock up. Well, I know he is running
advertisements on the radio that deals with the religious
Page 120

sect.
Now, that they are set up, does the Financial
Management Group need money or do they have
enough money to operate.
<STAN CATERBONE> No, they've got money.
<HOWARD EISSLER> They are a self-sustaining
operation then; anything they get from selling securities
they will pick up the commission, if there is brokered
mortgages they will pick up the commission on the
mortgages, and that's enough to keep them going, right?
<STAN CATERBONE> Oh, yea.
<HOWARD EISSLER> They are not pressed for money?
<HOWARD EISSLER> Have the handled the
customers/investor's money correctly.
<HOWARD EISSLER> You have mentioned they've
given money to Tom Turner and Kauffman's wife, what
else have they mishandled?
<STAN CATERBONE> I know the Federal people
wanted to investigate Kauffman's books, of his stock
book that he was managing.
<HOWARD EISSLER> This is when he was down at
Atlanta?
<STAN CATERBONE> No, this is now. That's why they
wanted him to liquidate his mutual funds so he could
manage it for him.
<HOWARD EISSLER> They wanted you to liquidate
your mutual funds?
<BILL JOHNSON> I told him that I was a little unhappy
with the performance of the mutual funds that I had; he
wanted me to liquidate it and go into the stock market
and let him work it for me.
Page 121

<HOWARD EISSLER> He was going to act as your
financial planner?
<BILL JOHNSON> I would imagine, yea, broker, buy
and sell stock.
<HOWARD EISSLER> Have they acted as financial
planners? - Now there license has not been approved
yet. Is the one that you <STAN CATERBONE> there is over $100,000 of our RIA
fees that they have collected last year - illegally.
<HOWARD EISSLER> Did you say RIA?
Investment Advisor.
Registered
<STAN CATERBONE> Do you want to see it?

<HOWARD EISSLER> Yea, let me.
now?
Who is registered
<STAN CATERBONE> No one is registered. I was that

close to getting it registered when I got shut it. It was all
ready set to go; I got the papers. I think it was just
some questions.
<HOWARD EISSLER> Were you working with
Jamineau?
<STAN CATERBONE> Yea, he is the corporate attorney
that I got - and I think he is very _______. He is good.
<HOWARD EISSLER> There's no problem with him.
<STAN CATERBONE> No, Jeff's a good guy.
taught me securities law.
He
<HOWARD EISSLER> I am trying to think, this

application here? Paul Short is who I was working with.
I asked to see the file quickly on Friday - I didn't know it
was there.
<STAN CATERBONE> Now I am still President of FMG
Advisory.
<HOWARD EISSLER> O.K., now wait a minute - let me
see, FMG Advisory comes in yet.
Page 122

<STAN CATERBONE> They threw me out of the
Financial Management Group; they never mentioned
FMG Advisory which I was President of.
<HOWARD EISSLER> Is this the one that applied to oh, alright, you're using the initials FMG, that's Financial
Management Group?
<STAN CATERBONE> Right.
it would be consistent.
I set up an umbrella so
<HOWARD EISSLER> What threw me off was, when

Financial Management Group was registered there was
a whole lot of other entities involved which used the
initial FMG Advisory Service, Accounting Service.
<STAN CATERBONE> That was for continuity.
<HOWARD EISSLER> O.K., then FMG Advisory Service
was never really, up to now, was never really registered
as an investment advisor, right?
<STAN CATERBONE> Correct. They were registered
_______ but not with the state?
Right _______.
<HOWARD EISSLER> But, now, during this time - from
the time they are in business, from August of 1986 until
now, they have done investment advisory services and
these are the fees that they collected?
<STAN CATERBONE> I charged some.
<HOWARD EISSLER> You are allowed to charge up to,
what is it - 14 people?
<STAN CATERBONE> I think it is only 5. I was careful
about that one. I know I only charged 5 clients, I am
sure of it. The SEC really gave me a rough time getting
that thing filed - I couldn't even understand their
questions half of the time. They are a mess, they really
are. I must have spent 100 hours.
<HOWARD EISSLER> I agree with you, there is a lot of
attorneys work in the Harrisburg, and the question is the
application - the question is about that long and the
answer is Not Applicable.
<STAN CATERBONE> Yea, it takes you 3 hours to
Page 123

figure out that you don't answer it.
<HOWARD EISSLER> I agree with you.
tendency to want to throw it away.
I have a
<STAN CATERBONE> Well, after 5 months of fooling

with it myself, I called Jeff up and said, Jeff, you got to
help me get through this thing. I got to get this
registered. I called Jeff on the RIA probably in January no, probably February or March.
<HOWARD EISSLER> So, June 1987 was the last
correspondence you had.
<STAN CATERBONE> Yea, right there it is.
it was done on June 23.
Right there,
<HOWARD EISSLER> I am going to want a copy of

this.
<STAN CATERBONE> I need to get a copier in here
and copy it for you. I can't leave these out of here
without copying them. These files are just to valuable to
me - if they get lost or whatever. You can attach it to
whatever you want, but I want to get a copier in here and
make copies for you and you can just run. I don't know
where I am going to get money for a copier but --. Well,
these files have been literally all over the country. In fact,
most of these files are in 2 law firms in California and
New Jersey. I was all over the place.
<HOWARD EISSLER> This is the application for your
registration as an investment advisor.
<STAN CATERBONE> I would like to see what the new
one says on it.
<HOWARD EISSLER> As you can see, they are all like
a standard form. Like I said, I have difficulty looking at
these things. If I am looking at something I can find it,
but just to look over and say its alright or whatever.
<STAN CATERBONE> But I would like to see who they
have listed on as officers.
<HOWARD EISSLER> I just looked at it Friday and
didn't take particular notice other than I knew that
Kauffman and Hartlett were some of the people.
Page 124

<STAN CATERBONE> My name wasn't on it.
<HOWARD EISSLER> Oh, no, no, your name wasn't on
it.
<STAN CATERBONE> Well if they are using FMG
Advisory, I am still President of that company.
<HOWARD EISSLER> Well, I don't know in corporate
law what it takes to do away with a President at the
Board of Directors meeting.
<STAN CATERBONE> I'll tell you what it takes. ----that's exactly right, but they didn't have a Board of
Directors Meeting. No, the shareholders must vote on
the Board. Shareholders must vote and approve, and
shareholders must exempt people on the Board.
Shareholders have to vote to remove someone from the
Board. Yes, but the Board of Director would be elected
for a year to two years, whatever the situation would be.
So that corporate officer would be there for that entire
period. The three of us were elected to the board for a
period of 3-5 years. The initial Board members -this was
one of Kauffman's move to gain control over a one-year
term. Me, Kauffman, and Hartlett were 3-5 year terms.
<HOWARD EISSLER> When did that take place?
<STAN CATERBONE> We did that back in June of 86
when we started the company.
<HOWARD EISSLER> Your only connection with the
company now is the fact that?
<STAN CATERBONE> I have no connection. They will
not let me - and I have personal belongings in that office,
and they owe me money.
<HOWARD EISSLER> That is something that you two
are going to iron out. See, my involvement is criminal
charges - that's how I am involved. And my involvement
is going to be the mishandling of investor's money.
Well, all of these other financial management groups are
100% stock holders - FMG Advisory Inc - 100%
stockholders?
Page 125

<STAN CATERBONE> Yea, what it is, the shareholders
own Financial Management Limited; Financial
Management Limited owns all the other subs.
<HOWARD EISSLER> O.K., 100% - there is no other
involvement?
<STAN CATERBONE> That's right.
<HOWARD EISSLER> Financial Management Group's
Semi Annual Report - I think there would be some
financial information <STAN CATERBONE> that's right, they won't give it to
anybody - not even me.
<HOWARD EISSLER> You had mentioned that there
are offices throughout the country. How are those
people connected here?
<STAN CATERBONE> Shareholders and they are
aligned with us through the broker/dealer. They go
through us to the broker/dealer, rather than direct. We
own 5% of Planner's Security Group in Atlanta. We get
the same deal that we 're supposed to with Hibbard &
Brown with this outfit in Atlanta. They are a fairly large
broker/dealer. They are doing about 15-20 million
dollars a year right now, Gross Commission Income
(GCI).
<HOWARD EISSLER> Is it Hibbard?
<STAN CATERBONE> No, they are the born-agains that
I left, I moved away from.
<HOWARD EISSLER> What's the name of the Atlanta
Group?
<STAN CATERBONE> Planners Security Group - Bill
Kegler.
<HOWARD EISSLER> There's nothing wrong with that
group?
<STAN CATERBONE> Yea, they terminated me for no
reason.
Page 126

<HOWARD EISSLER> As a registered rep?
<STAN CATERBONE> Yep. I am sure they will come
up with a reason; there is a reason why they did it
because with the NSAD they had to file. I would like to
know why?
<HOWARD EISSLER> You know, you were terminated
because you were sick or, you know there is going to be
a reason. Whether it is true or not.
<STAN CATERBONE> Lying has become an accepted
norm for all of this.
<HOWARD EISSLER> Well, in their compliance
department, all of these broker/dealers should and
generally do keep very good close track of their sales
people.
<STAN CATERBONE> How can they when I did the
deal?
<HOWARD EISSLER> But Financial Management
Group owns 5% of Planners Security?
<STAN CATERBONE> Bill Kegler was with FSC and got
angry when he couldn't run FSC 3 years ago. Then he
started his own broker/dealer.
<HOWARD EISSLER> This is with Planners Security?
<STAN CATERBONE> That's right. He left John Keebel
because of a power struggle with them.
<HOWARD EISSLER> But now, other than terminating
you when they shouldn't have, they are not doing
anything bad?
<STAN CATERBONE> How do I know?
<HOWARD EISSLER> Do you suspect they are?
<STAN CATERBONE> Yea, they terminated me, you
bet. You better believe I suspect. If they are doing that
to me, what are they doing to the poor clients who don't
know anything. The same thing with FMG - if they are
doing all this to me, what are they doing to the clients
that don't know anything. My clients are pissed.
Page 127

<HOWARD EISSLER> So, what they could do is
withdraw their money from the organization whether its
in the form of stock or whatever, but there is nobody
making investments ____________. Your money is
invested through ____________?
<STAN CATERBONE> I've got the former Medical
Director of St. Joseph Hospital that owns 10,000 shares
with FMG that is very upset about all of this. He is away;
I couldn't get him last night to come to the meeting.
They got $35,000 of his. He went through everything
from that company <HOWARD EISSLER> but he still owns the stock?
What did they offer you $2 a share or something?
<STAN CATERBONE> They didn't offer me anything.
<HOWARD EISSLER> But in that letter they did.
<STAN CATERBONE> They offered me when it came
time for me to get the check because they knew what I
was going to do.
<HOWARD EISSLER> Well, you wouldn't have taken
the $2 a share would you, because you were talking
about a 5-1 split. I would have taken it but I would have
pursued my civil and legal rights and sued them for the
rest. I went 5 days without food - I was starving. I had
no money - 5 days without food - people look at me
and laugh. Did you ever go 5 days without food? when
you are worth a considerable amount of money?
<BILL JOHNSON> Kauffman told me that he was going
to offer Stan $1-1.25 a share to settle it out, to buy his
stock and out of the proceeds of that he was going to
pay me the money that is owed to me first, right off the
top, I was his first consideration - that he wouldn't buy
the stock unless my note was satisfied.
<HOWARD EISSLER> You have a note with First
Financial Group claiming they are liable for it.
<STAN CATERBONE>
it into ? No, I
either has it or
from me, I don't
So you took the money and put

don't know who has the money. A bank
Lancaster Aviation. It was embezzled
know who has it.
Page 128

<HOWARD EISSLER> But they are acknowledging that
they have custody of it? They were acknowledging
liability for it.
<STAN CATERBONE> We don't know who has it.
Either Commonwealth Bank has it or Lancaster Aviation,
I don't know.
<HOWARD EISSLER> But you put it in the bank?
<STAN CATERBONE> No, I didn't put it anywhere.
<HOWARD EISSLER> He gave you the money, what
did you do with it?
<STAN CATERBONE> I gave it to Lancaster Aviation for
the airplane. Then they repossessed the airplane before
my first payment for, I don't know why. And I don't
know where the $25,000 down payment is. He don't
have it and I don't have it.
<HOWARD EISSLER> But the $25,000 went to him, not
as an officer of the corporation?
<STAN CATERBONE> To me personally.
<HOWARD EISSLER> The airplane is not part of this
corporate complex?
<HOWARD EISSLER> But now Financial Management
Group is saying they will pay you back that $25,000?
<STAN CATERBONE> Uh, huh.
my creditors.
They sent letters to all
<BILL JOHNSON> They told me that on 3 different

occasions - before they suggested I go to the bonding
company. Then they gave me a letter saying basically
that if I wanted to talk about it, talk to their attorney.
<STAN CATERBONE> Well, did you tell him about the
bonding company?
<BILL JOHNSON> Yea. They wanted you to sort of
make the allegation that I gave Stan the money to invest
Page 129

for me and that he had scuffled the money - they wanted
me to tell the bonding company that, which I refused to
do.
<STAN CATERBONE> They took out the bond after July
1. I got a thing in the mail about a bond; I thought what
is going on. Then he told me about a week later - I said
that's what that is - a $4,000,000 bond.
<HOWARD EISSLER> You know the bonding
company?
<STAN CATERBONE> Fidelity.
<HOWARD EISSLER> Of course, I am thinking from
their standpoint - Financial Management Group has not
seen the $25,000.
<STAN CATERBONE> No, I don't know, maybe they
have it. They might have it.
<HOWARD EISSLER> Well, the only way they could get
it is if it were a reimbursement made on the airplane.
<STAN CATERBONE> They were the ones calling the
bank and the Aviation Company about the plane, asking
what I was doing with it, where I was going? They were
the ones that initiated all the conspiracy with the lending
institutions. My credit rating was excellent up until
August - "01" down the line, never owed anybody
anything.
<HOWARD EISSLER> This is going to drag out; I will
keep in touch with you. Now, you also have investments
through mutual funds through Financial Management
Group? And how much money are we talking about
roughly?
<BILL JOHNSON> About 170,000.
<HOWARD EISSLER> Now, do you have the certificates
for this.
<BILL JOHNSON> No, they were never issued.
are held in ________ with the broker,
They
<HOWARD EISSLER> and the broker in this case was?

Page 130

<STAN CATERBONE> His probably weren't transferred
yet, it was probably FSC.
<HOWARD EISSLER> So, it would still be a monthly
statement from them - so there is no problem with it
disappearing.
<BILL JOHNSON> I don't
it from Keystone - FSC
am sure. I doubt that
I get the interest off
month.
get anything from FSC, I get

is noted as the broker/dealer, I
they went yet to Planners Security.
that money, I get a check every
<HOWARD EISSLER> But your investment is not in

jeopardy now, as far as you know.?
<STAN CATERBONE> No, but he is on disability and 25
grand meant a lot to him.
<HOWARD EISSLER> Now, Kauffman wants you to sell
these the mutual funds and give him the $100,000 to
invest as a broker?
<BILL JOHNSON> Right.
<HOWARD EISSLER> Of course, you are reluctant to
do that because you still have confidence in Stan.
<BILL JOHNSON> I have confidence with Stan and I
am not very comfortable dealing in the stock market just
now. I like more settled investments - the stock market
idea and I don't get along very well. I am looking for
safety of my investments. Like Stan said, I am on
disability and I do need income.
<HOWARD EISSLER> And Kauffman promised you a
fortune if you made this transaction?
<BILL JOHNSON> He didn't come right out and
promise me a fortune but he insinuated that I could do
a lot if I let him work the stock market.. He was doing all
options, that's all he does. Well, I don't want no damn
parts of options.
<STAN CATERBONE> You look at his client files; they
are all option accounts. All of them, little old ladies down
to --.
Page 131

<HOWARD EISSLER> Here again, which you know, the
broker when he is talking to you, or the registered rep
when he is talking to you, should file a form as to what
you want. Now you just mentioned to me that you are
a conservative of man. I had him in government
securities. - And they should have these on file.
Now, if you are conservative and you give him the money and
he starts dealing in options, he is really violating the trust
that the government and the NAFC is trying to establish
between the client.
<BILL JOHNSON> I tell you what. I feel sorry for you
guys. You guys got a hell of a nightmare. Stan always
backed me up; there were times I pulled my investments
out and put them in CDs for a while because I was just
not comfortable with what was happening.
<STAN CATERBONE> And, I tell him what CDs to buy
at local banks.
<BILL JOHNSON> I have the utmost confidence in
Stan. Mr. Kauffman tried extremely hard to shake that
confidence.
<STAN CATERBONE> He tried to shake up my own
family. He had my own family believing. Do you want
to know something. In August, I was on my way to
Hollywood to the film studio and to see some legal
clients I was working with one day - that night I come
back to my house to get a night's rest. I get thrown in jail.
I go to the police station to get a restraining order
against my family that didn't understand what was going
on - I get retained in the police station for two hours, get
taken to a hospital. That day, someone called the Stone
Harbor police and said I had a gun and was running to
the beach to kill myself. This thing is ugly.
<BILL JOHNSON> As a matter of fact, I would believe
I am the only one left to believe Stan is still sane. Well,
I caught on real quick. I don't believe he had anyone to
talk to except me.
<STAN CATERBONE> I didn't. I could talk to him every
other day since April; someone had to believe what was
going on. I have tapes - I have a tape of Bob Kauffman
July 3 telling a, supposedly client of mine - it was actually
Page 132

my brother - that I was mentally ill, spending money that
I shouldn't been, and wasn't taking care of my clients.
<BILL JOHNSON> He told me the same thing. - that
Stan had wasted away somewhere between $45,000 and
$70,000 of his own money, just throwing it away on
frivolous things.
<STAN CATERBONE> Every minute I have ever spent
and every dollar I have ever spent, I've made money on
anything. I got my brothers in profootball - held my own
free agent camp. And, they were both picked up last
week, as a matter of fact. I was involved in that too.
Right there.
<HOWARD EISSLER> I thought I heard - is he
connected with the Eagles?
<STAN CATERBONE> Eagles and Dolphins.
<HOWARD EISSLER> I just heard it on the news - one
of those things - I heard the name mentioned, it is not
that common a name, and I heard the name mentioned
in the newscast of the NFL strike and it was like - what
was that, but it was too late. That Thursday, right after
I called you, was when I got the call.
<BILL JOHNSON> Stan held his own free agent camp
so that the players who didn't get chances in the bigger
camps had an opportunity to do it.
<STAN CATERBONE> 50 people showed up, from all
over the country. The most innovative camp - I taped
the camp, sent the tape to all 3 leagues - 55 teams.
<HOWARD EISSLER> When was that, 84?
<STAN CATERBONE> Yes, right there it is.
<HOWARD EISSLER> And some of them got picked up
as a result of this?
<STAN CATERBONE> Only one, my brother. I guess
they had to have some body. Yea, that was a fun day
that day. That camp cost me 5 grand and generated so
far $200,000.00 in salaries for my brother.
That airplane that I bought would have made me $3,000
Page 133

net profit a month, leasing it out. I had at least 20 hours
of leasing every month for 350 a month at $7,000, and
my payment was $1500.00.
<HOWARD EISSLER> You were leasing it to?
<STAN CATERBONE> My contacts, my network.
<HOWARD EISSLER> With you as a pilot, you mean?
<STAN CATERBONE> No. It's a big plane. I hired my
own pilot. When I'm doing business all over the country
I can't fly commercially. In three weeks, my charter bill
was 4 grand for using another person's plane 5 times.
<HOWARD EISSLER> Then, you bought this, and
before the first payment was due they grabbed it back.
Can they do that?
<STAN CATERBONE> No they can't. Why do you think
I've got a large lawsuit against 3 banks. One of the
reasons they said they did it was because it wasn't
properly insured, but he had insurance. The other
reason they said, he took it to Florida. Now I don't know
why you would buy $100,000 airplane and leave it at the
airport. Do you know why I was taking it to Florida?
I bought a place on an island, another very good
investment. Now they are suing me because I couldn't
settle because I got blackmailed 2 months later. They
said I was going to Florida to run away and hide. I was
going to Florida to settle my property. They had to come
up with a reason so that's the reason that was around I
guess. But, Pete Peneros's brother works for
Commonwealth National Bank. Plus, do you know
anything about United ChemCon? They are being
investigated right now by the FBI and Attorney General.
<ROBERT BEYER> Chemcon is the big local minorityheld corporation that was doing a lot of defense
contracts - it was associated with ISC. They went under
last Spring, beginning of the summer, and there was a
lot of criminal allegations made, none of them
substantiated.
<STAN CATERBONE> And I was connected with that.
They sent a Board Member in to see me a week before
this happened. Why, I don't know.
Page 134

<HOWARD EISSLER> Is this Lancaster based.
<STAN CATERBONE> Yes, Jim Christian owned it now I hear rumors that I was tied to ISC and I am close
to several people in that organization. Why they sent
someone to California to see me, I don't know. They
won't answer me.
<HOWARD EISSLER>
Who is this, the FBI?
<STAN CATERBONE> No, this is Chemcon. I said if you ever come

back or you have someone else call me, I want a $10,000 retainer fee.
Never heard from them since. Then, two weeks ago, Jim
Christian called me while I was in the hospital. That guy
hated my guts for five years. Why, he called me, I don't
know.
<HOWARD EISSLER> What did he want?
<STAN CATERBONE> I don't know.
<HOWARD EISSLER> You didn't speak to him to find
out?
<STAN CATERBONE> I spoke to him, he said nothing.
The same thing the Board Member said when he came
from California. Asked if I could go get ChemCon
another building; asked if I would be interested in saving
the company from bankruptcy - I was working with a guy
from Belgium, they wanted me to talk to, a guy from DC
and New York, a guy from the Caribbean. I don't know
what the hell is going on.
Then I find out the Commonwealth Bank went and nailed ChemCon.
Commonwealth Meridian said Christian personally signed
for the $18,000,000 that was invested or lost of the
governments money for these contracts. I don't know.
I am sick of asking questions and people lying to me.
<HOWARD EISSLER> You don't have any connection
with that, other than you knew some people?
<STAN CATERBONE> No, I've got their files, I got their
financial statement, everything - they wanted me to do
something.
<HOWARD EISSLER> But you're not connected with
Page 135
the company?

You're not an investor?
<STAN CATERBONE> No, I sold my ISC stock June 8.

<ROBERT BEYER> A lot of people were saying that
ChemCon, which is a minority - Christian is a black guy was getting all the minority government contracts
because he was one of the leading minority defense
contractors around, and actually the supposition was - I
don't know how true it would be - is that it was a front for
ISC.
<STAN CATERBONE> It was, I'll tell you why. Because
when ChemCon was started, back to their inception, you
look at ISC's book. They didn't have any money. Well,
the first thing ChemCon did, was they went and got all
that free money from the government and you look and
see where that money went. I bet you I know where it
went.
This guy named Geurin, James Geurin. And I know that
they were selling contracts back. He runs ISC and he
also has his fingers pretty deeply in ChemCon. He's the
one who started ChemCon, Geurin is the one who
started it.
<HOWARD EISSLER> Wasn't there some allegations
about a tie with Wedtack.
<STAN CATERBONE> You bet. They were tied, you'd
better believe they were tied with Wedtack. The same
guys in Wedtack were involved with ISC and ChemCon.
<HOWARD EISSLER> ISC is that an over the ______ exchange_.

is a London Exchange. International Signal and Control?
ISC
<STAN CATERBONE> I owned a thousand shares. I sold it when things

started to hit the FAN. Now they just did a multibillion dollar
merger with a company in London. They probably think
it is going to cover their tracks.
<HOWARD EISSLER> You mean United ChemCon is
a local corporation.
<ROBERT BEYER> Yes, they went bankrupt as of this
last 3 months. What was it, $18,000,000 in liabilities?
Page 136

<STAN CATERBONE> What they did was, they fronted
all that money and started the contracts, went bankrupt,
now the government is stuck for $18,000.00.
<ROBERT BEYER> They weren't paying employees,
they weren't producing the product, they weren't paying
their unemployment and everything else.
<HOWARD EISSLER> Did they pay the withholding
taxes?
<ROBERT BEYER> No. It turns out that Christian, who
I have had a few dealings with, had an office that would
be would be suiting of any AT&T executive - Amazing.
Had these racquetball things in his office. 4 or 5 cars,
thousands <STAN CATERBONE> let me tell you about Jim
Christian now. I know right now in this town's viewpoint,
I stole money, I am insane, and I am a lunatic. I tell you
I will not condemn Jim Christian until he tells me to my
face what happened. I was framed and set up and I
know
<HOWARD EISSLER> (I see what you mean, your
experience).
<STAN CATERBONE> I don't know, maybe Jim Christian doesn't
have the money. Maybe Geurin has it or somebody
else. $18,000,000 is a lot of money and he is broke
because he lives with one of my best friends, ________.
I mean they don't have money. And, I would think that
if he took it, he would have something.
<BILL JOHNSON> You're pretty nice, Stan, to
somebody who has hated your guts for 5 years.
<STAN CATERBONE> I know what I am going through,
and who knows, maybe he was innocent too. Is this
Christian you are talking about. Yes.
<HOWARD EISSLER> You were going to make copies
of these.
<STAN CATERBONE> I can't make copies, I can fax
them to you. I will make copies for you, in fact, what I
should do is get everything copied for you.
Page 137

<HOWARD EISSLER> Well, no, because that is a
tremendous expense. I would rather, if you have the
time, or can stick me in the corner somewhere, maybe
say, this and this, and this, I am sure we can eliminate
half of it.
<STAN CATERBONE> O.K. but you should tell me what
you want and I will make copies. I just don't want this
stuff to leave my hands anymore. I can let them to you
overnight.
<HOWARD EISSLER> Well, there is nothing we can do
overnight. I can't elevate your problem as far as being
out of the corporation <STAN CATERBONE> oh, I thought you were going to
give me a check before you leave.
<HOWARD EISSLER> So, anything that I would be
involved in is going to be long and drawn out; it is not
going to be an answer to your immediate problem.
<STAN CATERBONE> I know, but I had to get
someone involved. I had to get authorities to start taking
action for me.
______________ the SEC <HOWARD EISSLER>well, he is the one I am talking
about mostly.
<BILL JOHNSON> They said they were sending 2 guys
up here last week for 2 days.
<HOWARD EISSLER> Did you talk to them about what
was going on? How did you happen to talk the SEC.
<BILL JOHNSON> I was just trying to get my money
back. They promised me my money and they didn't
come up with it. So, I called them.
<HOWARD EISSLER> So basically, you have
_________. If they came there, I think their attitude
would be well, -----<BILL JOHNSON> no, they were curious as to some of
the other things that were going on. I talked to them a
couple of times. They were curious for one thing,
Kauffman wanting to take my investment and putting it in
the stock market and working it for me, they were
Page 138

curious about that. They were curious about the
allegations of Stan's alleged insanity and forcing him out
of the corporation, and I think they were a little confused
about why they would accept liability for the money if it
wasn't there liability. That would be a question that I
would ask. I think that aroused their curiosity, but he
also said that they have never been checked, and they
are about due, so we might just as well go up there and
dig into it and find out what was going on.
<HOWARD EISSLER> As far as I know, that is what
they did, what they call a compliance examination. I
don't know that they were there looking -. Since your
allegations were made, I am sure they looked into some
items like that, but I think basically it was just a
compliance examination.
<STAN CATERBONE> What did they find?
<HOWARD EISSLER> I don't know.
<STAN CATERBONE> They were there though?
<HOWARD EISSLER> There was two people supposed
to be up there.
<STAN CATERBONE> Were they there last week?
<HOWARD EISSLER> Well, it was recent, the report
isn't even written, but the report I think will be more on
the lines that they don't have a client complaint form filed
- compliant type examination. Proper procedures, etc.
<ROBERT BEYER> I am still interested as to how you
were alerted to it.
<HOWARD EISSLER> I have yet to get it - I was
coming down as an appointment last Tuesday or
Wednesday, which ever day, it was the next day I called
you. I had an appointment here in Lancaster. I had
gotten a call about 4:30 in the afternoon from the Phila
office, and my supervisor down there said there is a
newspaper clipping of your break-in of the Financial
Management Group. I don't know whether to make an
investigation out of it or not. It seems there are some
securities involved.
<ROBERT BEYER> The only 2 articles that appeared
Page 139

are right over there and none of them say anything about
it.
<STAN CATERBONE> They just know my name, right?
They just knew that I was involved with the company? it doesn't say anything about securities there.
<HOWARD EISSLER> Nothing at all? Then how it
came to our office I don't know, unless somebody sent
it.
<STAN CATERBONE> Even if they sent the articles,
there is nothing in there to indicate who - they just called
me an ex-worker. That is the interesting thing about it.
"burglary, theft, unlawful restraint, robbery, unlawful use
of computer, criminal mischief, and terroristic threats."
<HOWARD EISSLER> I've never seen the article.
<ROBERT BEYER> There it is, pull them down.
<HOWARD EISSLER> No, that's alright. They were
supposed to send it up to me and they didn't.
<STAN CATERBONE> I'm leasing that building and
accused of burglarizing my own building.
<HOWARD EISSLER> See, he called me and said, you
are going down to Lancaster. See if we should start an
investigation. Stop up to the -- exemployee. Christian,
I think was the arresting officer? Mathias, they said
Lancaster Detective Mathias.
<ROBERT BEYER> He's not, he's Manheim Twp.,
<HOWARD EISSLER> fortunately I found that out.
<STAN CATERBONE> I called Township 2 months ago
and they didn't help me. Then they throw me in jail
when my partners call.
<HOWARD EISSLER> So anyhow, I stopped up that
evening, Tuesday or Wednesday night, the next day I
called you but did not get you until Thursday or Friday,
so that is my association. They were supposed to send
up the newspaper clipping or whatever it was they had.
But the only thing I know is that your name was
associated in our office computer file with Financial
Page 140

Management Group.
<STAN CATERBONE> Your not telling me anything
new.
<HOWARD EISSLER> But you see I was supposed to
have this. Why I don't, I don't know because they were
supposed to send it up. But the state in their own way
to save a .40 postcard, they have a messenger service
to Harrisburg. So, its alright if you get it in the mail, like
if I was in the office this morning and put it in the mail
before 10:00 it goes to the central office and gets
distributed -then the next day it goes down and would be
there the next day. But if you miss that 10:00 mail, it
don't leave our office until the next day then the next day
in the central file, then somebody drives it down to
Philadelphia.
<STAN CATERBONE> I should buy you guys some
stamps.
<HOWARD EISSLER> I had to deal with the State that
long so you know these are just little quirks that keep
popping up every now and then.
<ROBERT BEYER> I'll tell you an interesting part that I
had when I went out to view -they had to __________and Manheim Twp. called in to Hartlett as I was there.
I was there to get property returned to Stan, and Hartlett
started going through things and paying a lot of attention
to what was there, and had already admitted wasn't his.
There was a lot of correspondence there, he was very
interested in, and the policeman even came to my aid
and made him not be nosey, even its yours or it isn't,
and he released everything to me.
<STAN CATERBONE> Do you know what I took out of
the office was on the books, everything that I wanted to
see.
<HOWARD EISSLER> Did they let you keep that?
<ROBERT BEYER> No, no, in fact the inventory from
the service warrant, just about everything on here is
Stan's files, even labeled as such. Then I found a
______ checking account, K & H Enterprises, KauffmanHartlett Enterprises, they returned that to Kauffman.
Page 141

<STAN CATERBONE> K & H, what do you think that
stands for? Kauffman and Hartlett.
<HOWARD EISSLER> Well, that's what the initials stand
for but what type of business?
<STAN CATERBONE> I never heard of it.
<HOWARD EISSLER> You don't know what it would
be?
<STAN CATERBONE> I can imagine what it would be.
A brokers business somehow? It's something fishy. I
can't remember the bank, I think it was Hamilton Bank.,
Probably Hamilton or Farmers First.
<HOWARD EISSLER> In looking at these, the only thing
I can say, as far as I know Philadelphia is the only
information they had. Now maybe it came in
anonymously. I know a lot of people in Philadelphia.
This involves Financial Management Group or something
or involves securities, because the guy I talked to said,
you know, should we be involved in it at all? Ask what
it is, see if there is securities involved? And that's what
I did and that's when I came up Mathias and of course
he mentioned ____________-.
<STAN CATERBONE> Well, who mentioned to you
about medicine.
<ROBERT BEYER> It wasn't Mathias; Seigler was
involved.
<STAN CATERBONE> Why, how did they get wind of
that?
<ROBERT BEYER> Harlett and I were there and Hartlett
was talking about you taking your medicine.
<STAN CATERBONE> What medicine?
that's a bunch of crap.
___________,
<ROBERT BEYER> That's what Hartlett was telling him.

And Hartlett was saying is he taking care of himself and
all of this stuff.
<STAN CATERBONE> That son of a bitch.
painting a nice picture.
He is really
Page 142

<ROBERT BEYER> Well, the cops didn't really buy it
because they asked Hartlett to leave and they gave me
the information that they told Hartlett they weren't going
to give me.
Yea, well they mentioned the things that you had taken,
a couple of items, that they had given back and allowed
you to have them. They gave all the files back to FMG
before we were involved and then he gave me the
personal correspondences, but they kept his camera.
Apparently, Stan was doing the policeman's work when
he was in there the night he was accused of burglarizing
the place. He took pictures of all his files in their office
and they said they had better keep that.
<STAN CATERBONE> This is June 30th. It is my files
in their office. That's the night I left.
<HOWARD EISSLER> Who's taking the pictures?
<STAN CATERBONE> A friend of mine.
<HOWARD EISSLER> You were with someone? This
was 3 o'clock in the morning. Oh, you weren't arrested
on the premises, were you?
<STAN CATERBONE> No, but this is when I was in the
office. This is when they stole my files out of my locked
doors.
<ROBERT BEYER> He was arrested September 3rd I
believe it was <STAN CATERBONE> this is June 30th.
<ROBERT BEYER> They don't know he was in there
then, I guess.
<HOWARD EISSLER> These aren't the films that you
are talking about?
<STAN CATERBONE> No, the films he is talking about
I took of my files again in their office, and attorneys say
they didn't do anything wrong - explain why I was in jail
for 5 days.
This is the stock certificate book here,
Page 143

<HOWARD EISSLER> this big black book?
<STAN CATERBONE> Yea.
<HOWARD EISSLER> You are still connected with the
company here?
<STAN CATERBONE> This is June 30th. The funny
thing is, even the second one is not breaking in - well,
the girl left me in and she's a friend of mine.
<ROBERT BEYER> He is still President and at the time
he was still Secretary I guess. I don't think the police
feel too awfully strong that they have a burglary type
charge.
<HOWARD EISSLER> I know.
<STAN CATERBONE> Well, I tell you what, they abused
me the night they arrested me._________ Well, the cop
that picked me up here left me ride on the front seat and
everything. When I get to Township, handcuffed me, put
my hands to the belt, threw me in a cell, bounced me
around the car. They wouldn't even listen to who I was.
I had all the documents that told them that I was lease
holder of the building - wouldn't even look at it. They
didn't ask me anything. I know why they are acting nice
now. They are going to hear from my attorney.
I don't know who even made the complaint, whether it
was the girl who made the complaint.
<HOWARD EISSLER> You were arrested the next day?
<STAN CATERBONE> No, that night. I told 5 people
that I wanted to arrested that night. I had to.
<HOWARD EISSLER> But then somebody had to call
the Manheim police. Do you know what they did?
<STAN CATERBONE> They called up the police that
day and said 3 days previous to that, that I made a
bomb threat to that building - that's what the police
picked me up for.
<HOWARD EISSLER> Oh, really?
_____________
Page 144

<STAN CATERBONE> That's what the police picked me
up for. Then, while I was there they charged me with the
burglary. They initially picked me up for a terroristic
bomb threat, that took FMG three days to report, they
couldn't even remember when the phone call was, and
the person that reported it, I don't even know who she is
- never saw her, never heard of her.
<HOWARD EISSLER> You were at the premises there
roughly what time?
<STAN CATERBONE> I went there about 10:30
Thursday night;
<HOWARD EISSLER> you were there an hour?
<STAN CATERBONE> Not even that, about a half hour.
I left and dropped off at _________, had a drink, and got
a girl to take the car I had, I borrowed somebody's car
because my cars were in New Jersey - I flew back, and
got this girl to drive me here and as soon as I pulled in
Conestoga police were right behind me. I said, great,
they're here. And when the Conestoga Twp. cop, I said,
let me take all these files with me so I can show you
guys who I am and what I was doing. Well, they just
took everything and threw me in the cell and that was it arrested.
<HOWARD EISSLER> Well, let me get started.
read these letters yet.
I didn't
<STAN CATERBONE> Read that one letter right there.

That's right we have that other thing now.
<ROBERT BEYER> Yea, he's being sued civilly for this
office furniture here which was purchased from FMG.
But FMG then tells the Office Supply Store that he has
not connection with us.
<STAN CATERBONE> When they have my suite of
furniture in that building.
<HOWARD EISSLER> Oh, that what the pictures, is that
your personal furniture?
<STAN CATERBONE> You bet. I purchased this in
June to go down to Stone Harbor; see the movie that I
Page 145

was working on, FMG was to get 15% of the profit for my
endeavors down there. This was purchased as an agent
of Financial Management Group.
(Bob Byers left meeting)
<STAN CATERBONE> On the back of that letter you
were just reading is the name of the person he was
communicating to.
My name was the only one on all the checking accounts,
authorized to disburse money. Hartlett was on a couple
with Kauffman_, but I was on all of them - the only one.
Kauffman was on some; Hartlett was on some - we were
common, but I was on all of them.
<HOWARD EISSLER> Do those checks take 2
signatures?
<STAN CATERBONE> No, one.
<HOWARD EISSLER> What accounts would you have
been on alone.
<STAN CATERBONE> All FMG Advisory - I took care of
all that.
<HOWARD EISSLER> They use the term "gunjumping"
like a broker/deal wants to come into Pennsylvania before he could sell he - you can to sell to 5 people, before you get into the problem area.
Now, when you
are selling to one or two people, you should apply for a
registration with PA. Now, say a broker/dealer sells 5,
people, 10 people, 15 -then all of a sudden, he says,
hey, maybe I'd better register. Now he goes to register
with PA and they say, how many people did you sell to,
and of course he has an extra 10 people - that's called
"gunjumping." So, again, how serious is the crime?
Sometimes they'll say, o.k., because you gunjumped, we
are going to register you but you going to have a 5-day
suspension, that way it is on the record that he did
gunjump. The same situation is going to happen here.
They were not registered investment advisors and,
obviously from the paper they were giving investment
advisory work and soliciting from you so they have really
done a violation there. Of course, with you, you had
applied for the investment advisory registration - it didn't
Page 146

go through. They closed the thing by abandonment, like
all the questions weren't answered. Now they are
applying again, so they are in the process of registration.
I could throw a question at you, is there any reason now
why they should not be registered as investment
advisors?
<STAN CATERBONE> Here, again, if they are abusing
me what are they doing to the clients?
<HOWARD EISSLER> Granted, and that is the end I am
going to work on. Can you give me any specific
information - they've done you dirty.
<STAN CATERBONE> They've done me as well as
others.
<HOWARD EISSLER> Who else have they done?
<STAN CATERBONE> Do you want names?
<HOWARD EISSLER> Yes.
<STAN CATERBONE> Bill Umiker.
<HOWARD EISSLER> In what respect would this be?
He is a shareholder. And, what have they done to him?
<STAN CATERBONE> They don't let him shoot books they shut him out?
<HOWARD EISSLER> How about you, I hate to drink
your coffee. You are operating on a shoestring, here.
Well, how are you now? Can you survive?
<STAN CATERBONE> No, I can't survive.
<HOWARD EISSLER> What are you going to do, are
you here by yourself?
<STAN CATERBONE> That's a good question; I've
been working on this for 3 months. I sell a piece of
furniture.
<HOWARD EISSLER> You don't have an investment
portfolio of your own that you can fall back on?
<STAN CATERBONE> Yea, FMG.
Is that the only one

Page 147

you have? I have no cash. That is a good question,
what do I do? Why have I paid taxes for the last 28
years?
<HOWARD EISSLER> Then you had a substantial
income once?
<STAN CATERBONE> I never made a lot of money. I
never wanted cash because they I had to invest it.
equity.
I took
<HOWARD EISSLER> So, it's not paying off now?

<STAN CATERBONE> I bought this house for $90 - it
was appraised at $180 after a year. But everything I
have put my - everything fell apart because of what these
guys did, everything at one time just fell. Like I say, I
was coming into a half million dollars in cash this
summer on a project. You know these projects take
time, and time, and time.
<HOWARD EISSLER> You had mentioned a movie
down in Stone Harbor, what was this?
<STAN CATERBONE> The first digital movie ever in the
history of the world.
<HOWARD EISSLER> Digital movie, meaning not on
film?
<STAN CATERBONE> No, it's on film but all the sound
is digital. Kodak and Mitschubiti won't have this
technology for 5 years. I was working with the leading
recording studio in the world. I was named Executive
Vice President of a major film studio in Hollywood 60
days ago, but I can't do anything.
<HOWARD EISSLER> Was this film being made in
Stone Harbor?
<STAN CATERBONE> Yea, that's why I was down.
But, it never got off the ground because of what
happened to me.
<HOWARD EISSLER> You mentioned this Bill Umiker,
are there any others? He is one of the investors as a
result of __________ deal,
Page 148

<STAN CATERBONE> right? The film studio in
Hollywood needed my help to raise funds. They had
some lenders and some investment companies commit
some allegations. They want me to come in and help
clean it up and get things resolved. They're hurting. My
family's hurt. My family is deeply hurt. My mother's a
nervous wreck. My name is mud everywhere and I was
a very visible person - a giving person. My life is ruined.
<HOWARD EISSLER> You are contemplating, I am
sure, taking action against them for spreading this <STAN CATERBONE> I have been contemplating on
that for 90 days - no one believes me. All the attorneys
do is want to suck me up with fees and do nothing. The
first attorney I went to on June 30th told me to quit
fabricating these allegations and spend my time and
energy on other useful things. Was that Joe Roda? My
cousin. Then sent me a bill for $500, and two weeks
prior to that he told me a check was in the mail for a
client I sent to him. Never got the check but I got two
bills so far for $500. Now how can your attorney say that
you are lying? This is your cousing yet, don't forget that.
<HOWARD EISSLER> You're right.
<STAN CATERBONE> I talked to Gib Armstrong, the
Senator, back in July. He told me he was going to have
the attorney general call me - never. That's why I went
to 60 Minutes. 60 Minutes has everything. I told 60
Minutes what happened; I told them who I went to everybody, the attorney general, the FBI, the SEC, the
NASD. Diane Sawyer, I wrote her a personal note a
week and a half before I got arrested, out of desperation.
I was desperate. To me, my life was threatened. It still
is threatened and no one gives a damn, but Bill.
<HOWARD EISSLER> Has anything happened to you;
you say your life is threatened?
<STAN CATERBONE> My house was broken into in
Stone Harbor. My phone was tapped, I know it was
tapped.
<HOWARD EISSLER> Do you think it would be
Kauffman.
<STAN CATERBONE> Who knows, I am involved in so
Page 149

many things all over the place, who knows. Put it this
way, I know Kauffman and Hartlett were the _________
but I was a big threat to the banks around here. I beat
them on a $15,000,000 deal here in Lancaster prior to
them repossessing my plane. I was a big threat to all
the banks. They couldn't compete with me.
<HOWARD EISSLER> They didn't lose $15,000,000?
<STAN CATERBONE> They were going to lose a
$15,000,000 mortgage because of me.
<HOWARD EISSLER> You mean, you placed the
mortgage with someone else?
<STAN CATERBONE> It never got placed.
all at the same time.
It happened
<HOWARD EISSLER> But on the idea of doing that,

you as an investment banker or whatever, you could get-?
<STAN CATERBONE> A half a point.
<HOWARD EISSLER> Then the people ultimately did
have to get the mortgage place somewhere.
<STAN CATERBONE> They never got it placed yet.
They are still trying to get it placed with my mortgage
banking operation through FMG people that are stealing
that from me.
<HOWARD EISSLER> So, they have taken your sales
commission type away from you? <STAN CATERBONE> where's my salary?
<HOWARD EISSLER> Were you a salaried person until July 1?
<STAN CATERBONE> You bet. And I was granted a
90-day leave of absence with pay. I told them that I was
going to just to clean up my other deals but I was really
taking time off to seek an attorney and pursue.
<HOWARD EISSLER> This is prior to July 1?
<STAN CATERBONE> Yes, I was scared because I
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knew how liable I was as an officer of that corporation.
When I found the stuff that was going on, I was scared.
I didn't want to be tied up in all --------------END
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TI=\RUSSELL, GRUBER & HUBER TRESPASS NOTICE TO S. CATERBONE

IM= 160P01.CPR
DA= October 2, 1987
PA= PAGES:
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SU= SUMMARY: A trespass notice from Financial Management Group,
Ltd., to Stan Caterbone noticing that Stan Caterbone is not
licensed nor priveledged to enter or remain on the
premisis at Financial Management Group, Ltd., 1755 Oregon
Pike, Eden Park II, Manheim Township, Lancaster,
Pennsylvania, which premisis are the sole and exclusive
property of Financial Management Group, Ltd.,. signed by
attorney Christine Housner for Craig Russell.
IM= 160P02.CPR
DI= PAGE 02
IM= 160P03.CPR
DI= PAGE 03
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TI=\ATTY. MCDONALD CONFERENCE
IM= 161P01.CPR
DA= October 4, 1987
PA= PAGES:
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SU= SUMMARY: A copy of actual notes taken by Mike McDonald
during a meeting with Stan Caterbone, at 2323 New Danville Pike,
Conestoga PA, at the request of Stan Caterbone. Stan
Caterbone became suspicious of the lack of aggressive
legal actions taken by attorney Robert Byers concerning
the legal issue of Stan Caterbone's lease agreement,
Unsubstantiated and paperless termination, interests in
companies headquarted at 1755 Oregon Pike, that was the
soley owned by Stan Caterbone, as well as others. Mike
McDonald was of no help either.
IM= 161P02.CPR
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TI=\ARRAINGNMENT FOR MANHEIM TOWNSHIP CRIMINAL CHARGES
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October 5, 1987
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SU= SUMMARY: Waiver of Arraignment for the criminal charges of

theft, criminal mischief; and unlawful use of computers. The
trial was scheduled for the January, 1988 term.
was schduled to begin 14 days from November 25, 1987.
Attorney Robert Beyer had filed the document.
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TI=\MANHEIM TOWNSHIP vs. S. CATERBONE PRELIMANARY HEARING
DA= October 2, 1987
SU= {AUTTHENTIC TRANSCRIPT OF PRELIMINARY HEARING AS
TAKEN BY CHARLES A. LONG, RPR, OFFICIAL COURT REPORTER}
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IN THE COURT OF COMMON PLEAS OF

LANCASTER COUNTY, PENNSYLVANIA
CRIMINAL
COMMONWEALTH 0F PENNSYVANIA :
VS.
STANLEY J. CATERBONE
PRELIMINARY HEARING
October 2, 1987
1.00 p.m.
MURRAY HORTON, District Justice
TAKEN BY:
Charles A. Long RPR
Official court Reporter
LOCATION:
District 02-1-02
2205 Oregon Pike
Lancaster,Pennsylvania
APPEARANCES:
DATE:
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ROBERT D. BEYER, ESQ.

110 East King Street
Lancaster, Pennsylvania 17602
On Behalf of the Defendant
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WITNESS
STACY LYNN WATERS
ROBERT E. KAUFFMAN
DANIEL ANTHONY BERGER
INDEX TO WITNESSES
DIRECT CROSS REDIRECT
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Page 153
RECROSS
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LARRY G. MATHIAS
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JUNE KEMPER
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LARRY C. SIEGLER
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P R 0 C E E D I N G S
MR. BEYER: Good afternoon, Your honor.
THE DISTRICT JUSTICE: Good afternoon. We
have two Criminal Complaints charging the Defendant
Stanley J. Caterbone, here at the moment.
The charges were read at this time.
DETECTIVE MATHIAS: I understand Detective
Siegler, he is enroute.
THE DISTRICT JUSTICE: we can't proceed on
that until he is here, but we certainl can roceed on
the other. Do you have a copy of both charges?
MR. BEYER: Yes. I want to bring something to
both your attention in case I misheard it. When you
were referring to the first Complaint I think you said
it was your number 202. I don't have a number on the
first Complaint but my second complaint says 202. I
want it so we are straight.
THE DISTRICT JUSTICE: They all have the same
number.
MR. BEYER: Okay.
THE DISTRICT JUSTICE: All right. Do you have
a copy of the one filed by Detective Mathias?
MR. BEYER: Yes. And I waive that reading,
Your Honor.
THE DISTRICT JUSTICE: All right. Who is our
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first witness?
DETECTIVE MATHIAS: First, Your Honor, we
would like to dismiss the robbery charge. In consultin
with the District Attorney's Office, I was directed tha*
that would be the proper thing to do in this case.
THE DISTRICT JUSTICE: In other words, you're
going to withdraw the robbery?
DETECTIVE MATHIAS: Co*rect.
THE DISTRlCT JUSTICE: And not pursue that.
Cross it off, everyone on their Com laint. And who is
the District Attorney who authori*e* that?
DETECTIVE MATHIAS: District Attorney Totaro.
THE DISTRICT JUSTICE: T-0-T-A-R-0?
DETEcTIVE MATHIAS: Fi*st name is Donald.
Page 154

THE DISTRICT JUSTICE: The others stand, do
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they?
DETECTIVE MATHIAS: Yes.
THE DISTRICT JUSTICE: Now, we will have the
first witness.
DETECTIVE MATHIAS: At the re*uest of the
defense, we are *oing to se*uester the witnesses.
MR. BEYER: That's correct, Your *onor.
THE DISTRICT JUSTICE: All ri ht.
STACY LYNN WATERS, called as a witness,
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being duly sworn or affirmed, was examined and testified

as follows.
Q
THE DISTRICT JUSTICE: Last name?
A
Waters.
THE DISTRICT JUSTICE: Stacy Lynn Waters. Go
ahead.
DIRECT EXAMINATION
BY DETECTIVE MATHIAS:
Q
Miss Waters, would ou lease tell us what
you do for a living, where do you work?
A
I work for my mother at cleaning at FMG and
other buildings.
FMG. Do you know the location of that?
A
755 Oregon Pike.
Where do ou live at?
A
In Lititz' 204 Queens ate Road.
Could you explain what occurred on the
evening of the 4th of September, 1987 while you were
working at FMG? It may have been the 3rd, 4th of
September. In that area there.
A
Okay. I was workin at FMG. I heard a knock
on the window I looked to see who it was and it was Stan
and I went to the door to say hello and when I opened
the door, he walked in. Then I realized that he wasn't
really supposed to be in, so I told him that he
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couldn,t
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Q
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It was Stan Caterbone?

Stan Caterbone.
Is Stan Caterbone known to you?
yes.
Is that erson in the courtroom now?
Yes.
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Q
A

Would you point to that person?
Pointing.
That would be the person seated next to
Q
counsel?
A
Yes.
Q
Okay. How long have you known Mr. Caterbone?
A
About a year-and-a-half.
Q
So it was clearl him? T
question in your mind it was Mr. Caterbone that you were
talking to that night?
A
No.
Q
What night was it; do you know?
A
A Thursday night.
Q
Thursday. Did you -- did something happen
that evening after that, after you left Stan into the
building?
A
Yes. He told me that he had come to take
some files that were his and take some pictures and so
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He went into Mike Hartlett's -Q
Mike Hartlett?
A
His office.
Q
As a result of what ha pened that ni ht with
Mr. Caterbone, were the police called? As an end result
of that happened, whatever you're going to tell us right
now, were the police notified?
A
Yes.
Q
Okay. Did you provide the police with a
statement?
A
Yes.
THE DISTRICT JUSTIcE: can you say when were
the police notified? Like a year later
0r that very
night? Or do you know when?
A
I didn't notify the police
Q
They were notified within an hour or two of
what you are talking about now?
A
Yes.
DETECTIVE MATHIAS: Okay. The reason I'm
asking, Your Honor, is she provided a statement and I
think it is a very complicated case and I would like to
introduce her statement so she has it with her.
THE DISTRICT JUSTICE: The police were
notified almost immediately then, is what you are
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saying?
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DETECTIVE MATHIAS: The police were notified
within a reasonable time frame of the crime.
THE DISTRICT JUSTICE: Now she stopped that
Stan went into Mike's office.
DETECTIVE MATHIAS: Right. She supplied us
with a statement. I have it here. I'd like to have it
there. That's what I'm tryin to get at.
THE DISTRIcT JUSTICE: Show it to him. Do you
have a copy?
MR. BEYER: I don't have a copy. I think the
proper way would be for her to be able to refresh her
recollection with this statement, but I don't believe
she could sit there and read from it.
DETECTIVE MATHIAS: She already has reviewed
it. I think she would like to have it with her in case
there is somethin about dates or times, et cetera. It
is a seven page statement.
THE DISTRICT JUSTICE: Go ahead. Stan went
into Mike's office.
DETECTIVE MATHIAS: May I give this to here
THE DISTRICT JUSTICE: Yes.
DETECTIVE MATHIAS: Would you like to see
this, Your honor?
THE DISTRICT JUSTICE: No. Go ahead. live it
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to the witness.
DETECTIVE MATHIAS: 0kay.
BY DETECTIVE MATHIAS
Is this the statement that you given to
the police and to me, as a matter of fact, on the date
of this incident?
A
Yes.
Q
I want you to have that so you have it there
with you for your reference if you need it. Now would
you continue. What happened that evening, if you can
explain?
A
0kay. Then he had a screwdriver. He pried
open Mr. Hartlett's desk.
Q
When Stan came to the building you said you
left Stan Caterbone into the buildig?
A
Yes.
Q
And then you said he went into someone else's
office? Or some office?
A
Yes.
Q
How did he get into that office?
A
It was open.
Q
Okay. At any time did he go into any offices
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that weren't open that he had no ritht to be in?
A
None that were not open.
Q
Did he go into any offices that were locked?
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A
No.
Q
At any time did he go in?
A
To the basement, but that was the only one
that had to be unlocked. The hallway that we were in
was locked.
Q
I see. How did he get into the hallway?
A
I had the keys and he got them out of your
hands and unlocked it.
Q
He took the keys from you*
A
Yes.
Q
You didn't give them to him?
A
No.
Q
If he would have asked you for the keys,
would you have given in?
MR. BEYER: I object. That's speculative.
DETECTIVE MATHIAS: Okay.
THE DISTRICT JUSTICE: Somebody is going to
ask the question. Did he forcibly take them from you
A
Yes.
THE DISTRICT JUSTICE: Go ahead.
Q
After he took the keys from you?
A
Yes.
Q
What happened?
A
Then we went -- well, we walked around and he
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showed me some things that he had in a bag, papers.
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Q
What were they that he showed you?
3
A
That he had in a bag with him.
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Q
That he had with him?
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A
Yes.
We went into an office, he showed me
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They were papers of charges that he had
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the other things.
And then we went to Mr. Hartlett's
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10
Q
Explain if you can -- what we want you to
11
understand, see, some if the people here don't have any
12
idea what happened that evening at all and we are trying
13
to explain the story to them so they understand that
14
happened.
15
A
Okay .
16
Q
Okay .
Now he went into Mr. Hartlett's
Page 158

17
18
19
20
21
22
23
24
25
office?
A
Yes.
Q
That happened there?
A
Then he took out a screwdriver and he pried
open the desk and started taking files out.
Q
He did?
A
Yes.
Q
Did he remove an thin
from those desks?
A
The files.
PAGE 12
1
Q
What happened to those files?
What did he do
2
with those files?
3
A
He carried them with him as we went to
4
another office and then we took the files out to the car.
5
car.
6
Q
Okay.
You're saying he took the files to his
6
vehice,
7
his car?
8
A
Yes.
9
THE DISTRIcT JUSTICE: He or We?
10
A
He.
I was with him but, I mean, he carried
l1
the stuff.
I was with him the whole time.
12
THE DISTRICT JUSTICE: You went out to his
13
car?
14
A
Yes.
He had me -- he had my arm.
15
16
Q
What do you mean?
He forced you to go with
him?
17
him.
18
MR. BEYER:
I obiect to the form of the
19
question.
20
THE DISTRICT JUSTICE: Well, just tell the
21
young lady to tell us exacty what happened.
22
DETECTIVE MATHIAS:
Yes.
23
24
Q
You said you went to the car with him?
25
A
Yes.
PAGE 13
1
Q
Why did you go to the car with him?
2
A
Because we didn*t
o to the car ri ht
3
Mr. Hartlett's office.
First we went to Mr. Kauffman's
4
office.
He took
ictures of some files and
oo
5
more files.
We went into the computer room. He took a
6
disk.
And when I went to use the phone
then he took
7
my arm 'cause he didn't want me to call anyone.
Then he
8
had me with him the rest of the time and then I
Page 159
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

accompanied -- was with him when he went out to the car.
Q
You said you went to call someone
A
Yes.
The police.
Q
Why were you going to call the police?
A
Because, I mean, I was told that he was not
to be in there.
And he was taking files.
Q
What happened then?
A
Then he came out and he took me by the arm
and took me back to the office with him.
Q
He took
ou back?
If you would have
wanted to leave, could you leave?
MR. BEYER:
I obiect to that it's speculative too.
THE DISTRICT JUSTICE:
Rephrase it.
Q
Why didn't you leave?
A
Why didn't I leave?
Because he had my
arm.
PAGE 14
1
Q
And he wouldn't allow you to leave?
Is that
2
what you are saying?
3
A
No.
he didn't want me to go call anyone
4
Q
So, you didn't call the police?
5
A
No
I didn't.
6
Q
What happened then?
7
A
Then, well we had to make two trips out to
8
the car to take files out and then he wanted to go down
9
to the basement and so we went down there and I didn't
10
know I even had a key that unlocked it, but he unlocked
11
it.
Then he ripped out some phone lines. We went back
12
upstairs and we went into the computer room and he
l3
ripped -14
Did she say cut?
15
A
No. He ripped them out, just ripped them
16
out.
17
THE DISTRICT JUSTICE: You said ripped
18
phone lines?
19
A
Yes.
And we went up to the computer
20
room and he turned the key on the computer. I don't
21
know if it turns it off or what it does. I don't know.
22
And he tore some other things out of the wall there.
22
then we went to another office. He ripped some -- tore
24
some lines out from an ADP machine and then -25
Q
what is an ADP machine? Do you know?
PAGE 15
1
A
2
quotes.
It is what stock brokers use for their

I don't know what all it does.
Page 160
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Did she say again
what he did to that?
A
He tore some of the cords out from it.
Electrical cords?
A
Yes.
Okay.
Q
While this was going on, while this occurred
with Stan Caterbone being in the office areas, were you
scared?
A
I was scared to a point twice. The first
time was in Mr. Kauffman's office and he had my arm and
I was just kind of fighting to get away and trying to
get him to stop and just to leave. And he just -- he
said that I was putting up pretty much of a fight.
He
threatened to knock me out.
And then the second time was when we went down
to the basement and I was scared because it was dark
but he said that if he was going to do anythin to me he
would have done it by then.
Q
If you would have wanted to leave?
A
Yes.
Q
While Mr. Caterbone was going into these
PAGE 16
1
offices, could you have left?
2
A
No.
3
Q
Why?
4
A
Because he had a Hold of my arm. Not always
5
tight, but when I did try to get away, then he did grab
6
it tighter.
It didn't hurt me or anything.
7
Q
So, he held you?
Is that what you are
8
saying ?
9
A
Yes.
10
Q
At what point did you finally get free?
11
A
when he -- when he was leaving
out at his
12
car.
13
Q
Can you explain?
14
A
He had my keys and -- and so he had to give
15
them back but he made me go out with him and then he
16
gave me my keys back and then he made suree got back
17
in the office okay and he left.
18
Q
Is there anything you would like to say about
19
what has happened here that I haven't asked you that you
20
just want to make a comment about this whole story,
21
this whole incident?
22
A
No.
23
DETECTIVE MATHIAS:
One moment.
I have
Page 161
24
25

two questions.
PAGE 17
1
Q
One, you said that you saw him tearing things
2
out of the phone downstairs?
3
A
Yes.
4
Q
You saw this with your own eyes?
5
A
Yes.
6
Q
Okay.
And who did that property belong to;
7
do you know?
8
A
I don't know. I quess it belongs to whoever
9
owns the building.
10
Q
Okay. You said he had taken a disk out of a
11
computer upstairs.
12
A
from a file, yes.
13
Q
Actually removed it from the computer?
14
A
No.
It was in the file.
15
Q
What happened to that disk; do you know?
16
A
H took it with him. I don't know what
17
happened.
18
Q
To the car?
19
A
Yes.
20
Q
And you said he removed items from disks
21
in the offices, one of those desks he had actually
22
opened with a screwdriver.
He took things and he took
23
them with him as well?
24
A
Yes.
25
Q
In his car?
PAGE 18
1
A
Yes.
2
Q
And left.
When he left you to come back in
3
and watched that you safely returned to the building, he
4
actually left with those items?
5
A
Yes.
6
DETECTIVE MATHIAS:
I have no more
quesions.
7
Before you go ahead,
8
clarify something for me.
The Defendant didn't have you
9
by the hand all the time from the moment you let him in
10
the door -11
A
No.
12
-- until he finally
13
released you outside to go back into the office and
14
assisted out or whatever?
Is there a reason why you
15
didn't walk out the door?
Or call the police?
Or do
16
something?
Page 162
17
18
19
20
21
22
23
24
25

A
Because until that I was *ust trying to get
him -- I wanted him to just leave and I was Just trying
to talk him out of taking things.
Go ahead.
DETECTIVE MATHIAS:
You do bring up the
poinT.
I wanted clarification
here.
Did he have her by the hand all the time?
BY DETECTIVE MATHlAS:
Q
After Stan grabbed your arm or held your
arm,
PAGE 19
1
from that point on?
2
A
Yes.
3
Q
Did he ever let you go that you could have
4
left until the very end, when he gave yuor keys back?
5
A
He didn't -- oh, he had like his arm around
6
my arm but when I, you know, tried to get away then he
7
held tighter.
So, I mean, I did try a couple of times.
8
Q
So could you have gotten free if you would
9
have wanted to?
10
A
No.
11
DETECTIVE MATHIAS:
0kay.
12
MR. BEYER:
My turn?
13
DETECTIVE MATHIAS:
Yes.
14
CROSS-EXAMINATION
15
BY MR. BEYER:
16
Q
Good afternoon.
You've known Stan for
17
about a year-and-a-half, I think?
18
A
Yes.
19
Q
How did you first meet Stan?
20
A
I met him first when I was doing some work
21
for my dad when he was with IDS.
22
Q
Then you knew that Stan was the executive
23
vice president of Financial Management Group?
24
A
Not at that time, I don't think so.
That was
25
a little before, but, yes.
PAGE 20
1
2
3
4
5
6
7
8
q
A
Q
A
Q
A
Q
A
At one time you worked for FMG, didn't you?

Yes.
What position did you have at FMG?
I was a receptionist.
When did you start working there?
July of last year.
Of '87?
Yes.
Page 163
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Q
A
Q
A

And who hired you ?
Mike Hartlett.
Did you work with Stan there?
I worked for Stan.
I did some things for
him.
Q
And you and Stan were pretty good friends,
I believe ?
A
He talked once in a while.
Q
And you went down to the shore to visit him
at his house?
A
No
I didn't go down
him.
I saw him there once.
Q
All right.
when did you terminate your
employment with Financial Mana ement Group?
A
I think July this year, '87.
Q
And why did you terminate that employment?
A
Because my mom had a cleanin business and
PAGE 21
1
she needed heop and I was going to work for her.
2
Q
There was a point when you were told Mr.
3
Caterbone wasn't allowed in that building - is that
4
accurate?
5
A
yes.
6
Q
Who told you that?
7
A
Mike Hartlett.
8
Q
Did you know when he was officially removed
9
as an executive or anything like that? Or you were Just
10
following Hartlett's orders?
11
A
Yes.
He told us that he was removed as
12
executive.
13
Q
Hartlett told you that?
14
A
Yes.
15
Q
All right.
Now
when Stan knocked on
l6
window that evening I think your initial reaction was
17
you were glad to see him? is that a fair state*ent?
18
A
Yes.
19
Q
And you had never had any trouble with Stan
20
before that?
21
A
No.
22
Q
And when he first came in the door did he
23
have something with him?
24
A
I don't remember.
I quess he had the blue
25 bag.
**
PAGE 22
1
Okay.
He was carrying
Page 164
that with him in his

2
3
4
5
6
7
8
9
10
11
12
13
14
15
l6
17
18
19
20
21
23
24
25
hand?
A
Yes.
Q
Would it be safe to say that Stan was rather
excited that night?
A
Yes.
Q
And he wanted to show you a lot of things in
the building?
A
Yes.
Q
And he was taking you around from office into
office saying, look at these files in this office, look
at these files in that office?
A
Yes.
Q
And, in fact, he told you look, that Kauffman
is now in my office and here are all his files.
He
showed you that, didn't he?
A
Yes.
Q
And, you had also been aware that Kauffman
had all the locks changed on his office, didn't you?
A
I had thought that Stan had the locks
changed.
The outside of the doors, yes, the locks were 22
changed.
Q
But, you're aware that before Stan took his
business operations to New Jersey that he had the locks
changed on his own office?
PAGE 23
A
yes.
1
2
Q
But then Kauffman had them rechanged, I
3
guess right?
4
A
Not that I know of.
5
Q
Okay.
Did you guys go in that office?
6
A
Yes.
7
A
Had it been locked?
8
A
No.
9
Q
So, if that door was unlocked it was unlocked
10
before you got there that evening?
11
A
I unlocked it when I got there.
12
Q
And where did you get your set of keys?
l3
A
I have them for cleaning for Mr. -- I think
14
it is Mike.
Stan gave me a key to his door.
15
Q
Stan gave you a key to his office?
l6
A
Yes.
17
Q
All right.
Now, as he is going from office
18
to office picking up files, what was he doing with them?
19
A
Taking them.
20
Q
Where was he putting them?
21
A
He held them in his hands and then Just
22
Mike's, just Mr. Hartlett's files.
Page 165

23
24
25
Q
A
Q
Was he carring them.

He was carrying them.
Now, he was carrying those and also carrying
PAGE 24
1
his Blue bag.
2
A
I don't remember if he had sat it
3
somewhere or if he had it with him.
4
Q
Okay.
can you estimate how much he had
taken
5
from Mr. Hartlett's office in terms of si*e?
6
A
About like that much.
7
Q
And that's what he was carryin with him?
8
A
Yes.
9
Q
Now, how long do you think Stan was in the
10
building that day?
11
A
It was not quite an hour.
Almost an hour.
12
Q
You were aware that Stan and the partners in
13 the business were having a problem between them
14
you?
15
A
Yes.
l6
Q
And you were aware that Stan felt as though
17
the company had taken many things that belonged to
him
18
A
I didn't know what the situation was. I
19
thought that it had calmed down and that it was pretty
20
much over by that time.
21
Q
But you're aware that Stan felt that most of
22
the stuff in there was his?
23
A
I didn't know what -- I mean nobody talks
24
about it.
I didn't know what was goint on.
25
Q
He was sayin it that night?
PAGE 25
1
A
That night, yes, he felt that things were
2
his.
3
Q
And your desire was to try to talk him out of
4
taking anything because you didn't thing it was really
5
right?
6
A
I didn't know and I didn't -- yes.
7
Q
Where else did he get files?
8
A
From Bob Kauffman's office.
9
Q
And that's Stan's old office?
10
A
Yes.
11
Q
The one he had the locks changed on?
One
12
Stan had the locks changed on?
l3
A
Right
Page 166
14
15
l6
17
18
19
20
21
22
23
24
25
Q
A

How much did he take from Kauffman's office?
He took, oh, I don't know how much.
He
took
a wastepaper basket and had it filled.
He made two
trips.
Q
Okay.
How did he carry the wastepaper
basket
to his car?
A
How?
Q
Yes.
A
Around his arm.
Q
What about his blue bag?
A
I don't remember where that was, if he had
with him or if he got it when he came back in.
PAGE 26
1
Q
Okay.
You indicated there were two points
2
when you were kind of scared.
3
A
Yes.
4
Q
The one was *oing do*n to the basement and
5
it was dark, right?
6
A
Right.
7
Q
Had you ever been down in the basement.
8
before?
9
A
No.
10
Q
And when was the other one?
11
A
When we were in Bob's office and I was trying
12
to get him to quit and to leave and I was trying to get
13
my arm from him and he Just said that I was putting up
14
a fight and that he would knock me out and I didn't now
15
if he was serious.
16
Q
From your experience with Stan, you were
17
pretty sure he wasn't serious, he wasn't going to knock
18
you out, weren't you?
19
A
I didn't know because of the things I had
20
been told about Stan.
People had said, you know, that
21
I didn't know what to expect.
22
Q
But, I guess your initial answer was you
23
weren't sure if he was serious or not?
24
A
I wasn't sure.
25
Q
All right.
when you made the first trip to
PAGE 27

PAGE 27
1
the car, what did he take with him?
2
A
The first trip?
He took files.
3
Q
Was the trash can involved in that first
4
trip?
5
A
I don,t remember.
Page 167
it
6
7
8
9
10
11
12
l3
14
15
l6
17
18
19
20
21
22
23
24
25

Q
Okay.
If he took files, was he carring them
in one hand?
A
Yes.
Q
What about his blue bag?
A
I don't remember what happened to the blue
bag.
I really don't.
I don't know if he had sat it
down, picked it up on the way out or what.
Q
And you went out to his car with him?
A
Yes.
Q
Did he put the stuff in the car?
A
Yes.
Q
And where were you when he was
uttin
the
stuff in the car?
Just standing there watching him do
it?
A
When he was putting it in the car, I was
standing there.
Q
Okay.
A
He had -- I was with him when he went out.
Q
He wasn't still holding you out at the car
was he?
PAGE 28
1
A
No, not out at the car he was not.
2
Q
You could have ran there if you wanted to,
3
but at that point you weren't really afraid of him?
4
A
I guess I could have.
5
Q
And, then you went back in with him for the
6
second trip?
7
A
Yes.
8
Q
And the second trip he took everything else
9
that he hadn't taken on the first trip I take it?
10
A
Yes.
11
Q
And then he gave your keys back?
12
A
Yes.
13
Q
And he waited to make sure you could get
14
back into the buildings safely because it was dark
outside?
15
A
Yes.
16
Q
And, in fact, I think the two of you might
17
have kissed goodbye?
Or a peck on the cheek? See you
18
later?
Take care?
19
A
There was a peck on the cheek.
20
Q
Okay.
21
MR. BEYER:
Thank you, Stacy.
22
DETECTIVE MATHIAS:
Recross this for a
second.
23
MR. BEYER:
Redirect.
24
DETECTIVE MATHIAS:
Called redirect?
25
MR. BEYER:
Yes.
Page 168

PAGE 29
1
DETECTIVE MATHIAS:
Thanks.
2
REDIRECT EXAMINATION
3
4
Q
You commented on the first trip to the car
5
you could have ran, you said I guess.
The question was
6
asked of you, could you have run.
You said I guess?
7
A
I supose I could have at that time.
I mean
8
he had more things to get and I stayed with him to see
9
what he was doing.
10
Q
Why didn't you run?
11
A
I didn't have my keys
for one thing
and I
12
wasn't going to leave him with my keys.
13
DETECTIVE MATHIAS:
May I get a question 14
in here that's off the record for the sake of the case?
15
THE DISTRICT JUSTICEOnly wiht no
objection.
16
DETECTIVE MATHIAS:
For your sake.
17
MR. BEYER:
I think it is for my sake.
18
DETECTIVE MATHIAS:
It is for your sake.
19
There was a brief discussion
20
held off the record at this time.
21
MR. BEYER:
This is on the record.
22
On the record.
23
DETECTIVE MATHIAS:
On the record.
24
25
Q
Right now, the obiective of the questioning
PAGE 30
1
taking place is to determine whether or not you were in
2
fear of being harmed by Stan Caterbone and whether or
3
not you were being unlawfully restrained by him, meaning
4
you could not leave of your own free will.
Do you
5
understand?
6
A
Yes.
7
Q
The
uestion I have is, could you have
one
8
and today, as you sit here, do you feel and believe that
9
you could have left and do you feel that -- or do you
10
feel that you were being unlawfully restrained by Stan
11
Caterbone?
12
A
While we were in the building I didn't think
13
I could have left.
I don't think I could have left.
14
When I was out at the car, by that time it was all over
15
and my main concern was that he didn't leave with the
16
keys.
17
RECROSS-EXAMINATION
18
BY MR. BEYER:
19
Q
were you in fear for your life?
20
A
For my life?
Page 169
21
22
23
24
25

Yes.
No.
MR. BEYER:
Okay.
No more queestions.
If at the car at the
first trip when he was using both of his hands to put
Q
A
PAGE 31
1
stuff into his vehicle, if you did flee -- how much do
2
you weigh?
3
A
Ninetey pounds.
4
So he is bigger
5
lot bigger, a lot faster, could easily overtake you?
6
A
Yes.
7
Did that thought
8
to you at all?
9
A
Yes.
10
THE DISTRICT JUSTICE: It did?
11
A
Yes.
I mean, I knew he was bigger than I was
12
and I wasn't going to -13
The thought did
occur
14
to you that if you did try to flee, if he wanted to stop
15
you it would be rather easy?
16
A
Yes, if he wanted to stop me, yes.
17
Is that one
18
things that prevented you from fleeing there? 0r is it
19
Just the keys?
20
A
Well, yes, he could easily have -21
I mean, is that one
22
of the factors?
23
A
Yes.
24
BY MR. BEYER:
25
Q
Were you afraid at this point?
Or you
wanted
PAGE 32
1
your keys?
2
A
At this point he had done what he was going
3
to do, I felt, and I wanted the keys so he couldn't go
4
back in.
5
Q
Through your experience knowing Stan
6
personally all this time, were you afraid for your life?
7
from him?
8
A
I was not afraid for my life.
9
MR. BEYER:
Thanks.
10
That's all.
Thank
you.
11
Do you want her to stay in the courtroom?
12
MR. BEYER:
I have no obJection to her being
Page 170

l3
14
15
l6
17
18
19
20
21
22
23
24
25
dismissed.
you want to

She can leave.
Do
go back to work or whatever?
Thank you.
ROBERT E. KAUFFMAN, called as a witness,

bein duly sworn or affirmed, was examined and testified
as follows:
Robert E. Kauffman.
Two F,s?
Q
**** * *******.
Two N's?
A
One N.
You may go ahead.
PAGE 33
1
DIRECT EXAMINATION
2
3
Q
Mr. Kauffman, would you pleaes Give Your
4
address and your business, what is your vocatton?
5
A
1755 Oregon Pike, Lan*aster.
6
Q
Is that your business address?
7
A
Business address and we are in the Financial
8
services business, investment sales.
9
Q
Okay, sir.
Could you explain to those
10
present what occurred on or about the third and fourth
11
of September, 1987?
12
A
Well, I got a call late at night from Karen
13
Loss, the wife of one of our representatives, about
14
eleven-thirty at night.
She explained to me that she
15
had received a call from Stacy Waters who claimed to
16
have been held by Stan, that he had entered the building
17
against her will, that he had -18
MR. BEYER:
I obJect to the hearsay stuff.
If
19
he could get to what he knows about it.
20
You don't know
wheter
21
she did or not, but based on information relayed to you
22
you must have done something.
What did you do?
23
A
Yes.
I was advised that perhaps I should go
24
down to the property and look around, which I did and
25
when I got there, I met at least one detective and
PAGE 34
1
Stacy, Allen Loss was there and I was asked to assess
2
the damage and Stacy went around with me and told me
3
what Stanley had done while on the premises primarily
4
and I relayed that information to the detectives and
5
that was it, as far as that night was concerned.
Page 171
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23
24
25

Q
You said damages.
What had occurred at
your business?
A
Well --MR. BEYER: I object to that. I think he can
testify to what he observed.
DETECTIVE MATHIAS:
Right.
Q
What did you observe?
What did you see?
A
First thing that I saw was first place we
went was to my office and I noted there were some files
missing.
Second place I believe was the computer room
where a key was missing to our main file server and it
was explained to me that -MR. BEYER:
I obiect to that.
Does he understand
about hearsay?
DETECTIVE MATHIAS:
Q
You can only testify to what you saw.
PAGE 35
1
A
Okay.
2
Q
Or what you know for a fact.
3
A
All right.
4
Not what was
5
explained to you.
6
A
Got you.
I saw that there were -- the wires
7
had been pulled out of the wall in the computer room,
8
that a key was missing to the mind frame of our computer
9
system, that our ADP, or Quotron emquipment as it is
10
called, was tampered with, that our computer system was
11
down in all the rooms and that they had been dislodged
12
probably -- well, at that point in time we felt broken -13
I was ushered into Mike Hartlett's office where I saw
14
that the desk was broken into, that some files were
15
missing, that I was then taken downstairs where a
16
basement door had been opened and I saw that wires had
17
been torn out of our phone system.
I also noted that
18
our burglar alarm was going off for one reason or
19
another.
20
Q
You said your phone system
21
A
Yes.
22
Q
The wires that were tampered with or pulled
22
were your property?
24
A
I'm not a phone technician.
I don't know a
25
whole lot about the installation.
At the time there
Page 172

PAGE 36
1
were three or four -- as you lool at a phone system, you
2
see three or four large panels with hundrees of wires
3
what I knew was -- that there was several hundred of
4
those wires pulled out and that our phones were in fact
5
dead.
That's all I know.
I'm not a technician.
6
Q
Were there any items stolen from your office?
7
A
From my office, what was missing was about
8
twenty-five odd files, I would imagine, and some papers
9
from my desk.
Nothing much other than that, that I
10
could recall.
11
Q
Yhere are computers in your business?
12
A
Yes.
13
Q
Were these computers tampered with or
14
damaged?
15
A
Well there were essentially, what I recall
16
from that night with -- that our two backup tapes had
17
been taken, which contained all of our information, data
18
on thousands of clients and that from looking at the
19
main computer system and the key being missing, et
20
cetera, I could only assume that that had also been
21
tampered with and what we had feared was that we may
22
have lost our entire data base and there may have beeen
23
some irreparable damage to the main computer frame.
24
Q
As a result of these computers having been
25
tampered with, was the operation affected?
Did it
PAGE 37
1
interfere with normal operations then?
2
A
Well, the very next day, essentially we were
3
without the service whereby we quote stock and bond
4
prices for the best part of the day, which I'm sure did
5
cause us some revenue damage.
6
We also were without a phone system till
7
somewhere around noon, which can also be a problem.
But
8
I was surprised at how quickly they were able to restore
9
service in both of those cases.
The backup tapes that
10
enable us to operate our internal computer systems were
11
recovered very quickly and that enabled us to pretty
12
much run our operation without a whole lot of problem.
13
Q
Was there a monetary loss to the company or
14
to you personally as a result of these damages that you
15
were seeing?
Or these changes?
16
A
There is no question that there were.
We got
17
a -- we have a repair bill in our phone system.
18
Q
What was that? do you know?
19
A
I believe I saw a seven hundred thirteen
Page 173
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21
22
23
24
25

dollar bill for that one.
We had the people from ADP come to our office
to restore our Quotron equipment.
We don't have a bill
from them yet but it is two hundred fifty dollars when
the
walk on the premises and then goes from there as
to how long it takes them to fix it.
And they were there
PAGE 38
1
all day long.
I would suspect that bill would be
2
Fifteen hundred dollars or more.
3
We were able to recover, as I said, the backup
4
tapes but they were worth an awful lot of money to us,
5
would take several thousand man hours to restore the
6
data that is contained on our main computer system.
7
Q
Where did you recover these tapes?
8
A
I recovered them from the Manheim Township
9
Police about 3:00 a.m.
10
Q
On what date- do you know?
11
A
It would have been that same night.
12
Q
Sir, do you know a Stanley caterbone?
13
A
Yes, I do.
14
Q
Is Stanley Caterbone privileged to be in your
15
business after closing hours?
16
A
No, he's not.
17
Q
Was he privileged to be in your business on
18
the date of this offense?
19
A
No, he was not.
20
Q
Did Stan Caterbone have any ri ht to enter
21
into your office or any other office of FMG?
22
A
No, he didn't.
23
Q
Did he have any right to remove any items
24
from that business?
25
A
No, he didn't.
PAGE 39
1
2
3
4
5
6
7
8
9
10
11
12
13
Q
Did he have any right to alter or interfere
with your normal operating procedures when it came to
the computer system?
A
No, he didn't.
Q
Did he have any right to destroy any property
within your business?
A
No, he didn't.
Q
To the best of your recollection or
knowledge, did he have keys or was he capable of
entering into your business after closing hours?
A
No, he didn't have keys. The locks were
changed over two months earlier and Stan was not even
a
key.
Page 174
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15
16
17
18
19
20
21
22
23
24
25

Q
At one time did he have a key to the
business?
A
At one time he did.
Q
Why would he have a key to the business?
A
Well, at one time he was involved in the
business as an officer, director of the company and he
was also a sales re repentative for us.
Q
When would he have changed from having
privileges of those properties and the privilege of
being on your property or the property, to the status of
not being privileged to be there?
A
That happened on July lst.
PAGE 40
1
Q
Of 1987?
2
A
That's correct?
3
DETECTIVE MATHIAS:
I have no further
4
questions of this witness.
5
CROSS-EXAMINATION
6
BY MR. BEYER:
7
Q
As you have been testifying on direct
8
exaxination you have been referring to a small piece of
9
paper on your lap.
May I see that, please?
10
A
I don't know.
There is nothing on it, but
11
you may see it.
12
Are they Just notes
13
to refresh your memory?
14
A
That's correct.
15
MR. BEYER:
There are several dates and
16
names on there.
17
Dates to refresh your
18
memory?
19
Q
That's correct.
20
It is quite all right
21
to have them.
He is allowed to see them also.
22
BY MR. BEYER:
23
Q
When did you first start working for
24
Financial Management Group?
25
A
August lst of 1986.
PAGE 41
1
Q
How did you come to work for Financial
2
Management Group?
3
A
It was a -- I made a decision to join
4
Financial Management Group several weeks before that.
5
I had spoken with both Stan and Mike Hartlett over a
6
period of months before that about beginning an
7
investment services firm in Lancaster.
Page 175
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PAGE
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18
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20
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22
23
24
25

Q
And when you say in Lancaster, I assume that
you were somewhere else at the time?
A
That's correct.
Q
You were in at Lancaster that day?
A
Correct.
Q
And, through your past business relationships
with Stan and maybe Mr. Hartlett, you were brought to
Lancaster or you came to Lancaster to engage in
business with them? is that accurate?
A
Correct.
Q
And that business was kno*n as *inancial
Management Group?
A
Correct.
Q
And when did that incorporate?
A
August lst.
Q
Of 1986?
A
To the best of my knowledge.
Q
And upon incorporation what was your office?
42
A
Q
A
I was the President of the firm.

And what was Mr. Caterbone's position?
He waw an executive vice resident of the
parent firm.
Q
What is the Parent firm?
A
Financial Management Group, Limited.
Q
Right. What's the corporate setup in terms
of persons and offices of the parent firm, Financial
Management Group, Limited?
A
Parent firm, I'm the president of the firm.
At that time Stan and Mike were -- equally had a
position Just below mine. Their title was executive
vice president. Mike reported to me on part of their -the business operations and Stan on another part.
Q
All right. In October of 1986, there was a
public offering made is that accurate?
A
Correct.
Q
And what was the name of that entity?
A
Financial Management Group, Limited.
Q
And in that entity you again are president?
A
Correct.
Q
And you were a shareholder of sixty thousand
shares?
A
Correct.
Q
And Mr. C*aterbone was a shareholder of forty
PAGE 43
1
thousand shares?
Page 176
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3
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PAGE
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20
21
22

Correct.
And to the best of your knowledge -THE DISTRICT JUSTICE: Excuse me one second.
Go ahead. Pbulic offering in October of -MR. BEYER: 1986.
BY MR. BEYER:
Q
And Mr. Caterbone at that time was executive
vice president. He had forty thousand shares and to
our knowledge, he still maintains those shares at this
time?
A
correct.
Q
Who is the secretary of Financial Mana*ement
Group, Limited?
A
I believe it was Stanley.
Q
And when did he stop being secretary of
Financial Management Group, Limited?
A
The -- he ceased being -- he ceased bein an
officer at our regular Monday morning meeting which
would have been the following Monday. I believe that
would have been July 6th.
Q
So up through July 6th, Mr. Caterbone was the
executive vice president and secretary of Financial
Management Group, Limited?
A
correct.
A
Q
44
Q
And in June of '87 he was also holding that
Position officially?
A
June of '87?
Yes.
A
Correct.
Q
Now, when was the last ti*e you had a board
of directors meetin* go prior to September 4th?
A
Our board meets on an ever Monday morning
basis and has since its inception of August of, 1986.
Q
Did you have a shareholders' meeting prior to
September of 1987?
A
No, We didn't.
Q
Who attended the meeting in July in which Mr.
Caterbone was removed as a board member?
A
Robert Long, Allen Loss, myself, Mike
Hartlett.
Q
And it was the decision of those persons who
you Just named that Mr. caterbone would be removed as
executive vice president and as secretary is that an
accurate statement?
A
What we were advised by our legal counsel.
I'm not asking you that. I'm askin you if
Page 177
23
24
25

that decision was made by those persons present at that
time?
A
Decision was made to remove him as an officer
PAGE
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9
10
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12
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14
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l6
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23
24
25
45
of the corporation at that time by those people.
Q
All rirht. Now, again you indicated Mr.
Caterbone still has fort thousand shares of your stock
to the best of your knowledge?
A
To the best of my kno*ledge.
Q
And, as late as Aguust of 1987, am I correct
in saying that you offered Mr. Caterbone two dollars and
fifty cents per share of that?
A
That's an oversimplification of what the
arran ement was. It was a complicated -- it was a
com licated arrangement
Q
In terms of stock per dollar price that's
accurate, correct? Regardless of the other things
around it, price per share of stock is that correct
A
That is the price that we offered on that
day.
Q
Okay. Now, the inability for you to quote
the stocks and bond prices on September 4th was as a
result of the ADP and not the computer machine, correct?
A
That's correct.
Q
And, in fact, you found out that your
computer wasn't damaged as a result of what happened
that night isn't that correct?
A
That is substantially correct.
Q
In fact, you back up your information every
PAGE
1
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3
4
5
6
7
8
9
10
11
12
l3
14
15
16
46
single day, which is on the commputer. It anything would
have been lost it would have only been for a day?
A
That's not entirely correct in that what we
were -- just so hap*ens that the one night Lisa didn't
get to the safe deposit box with our backup tapes and
our actual live copy backup tapes were both in on the
premises the night that the office was entered.
Q
Did you lose any information?
A
Not when the tapes were recovered.
Q
Okay. Now, who owns the building in which
you're located?
A
I don't know the exact name of the group.
That's Herb Fisher Sponaugle, I guess. I guess they
have a subsidiary.
Q
FMG rents that from them, I assu*me?
A
Correct.
Page 178
17
18
19
20
21
22
23
24
25

How long have you been renting that building?
Since August. *ell, August l*t woul* be *y*-I mean, was a staged entry but probably August lst is
what's on the -Q
Of 1986*
A
Correc .
Q
And that would be a five ear lease*
A
It is a five year lease.
Q
And the rent per month is approximately nine
Q
A
PAGE 47
1
thousand dollars, maaybe eight and change?
2
A
Correct.
3
MR. BEYER: I request to show this to the
4
witness, the lease for the remises.
5
6
BY MR. BEYER:
7
Q
I'm showing you what we will call Defendant'
8
Exhibit No. 1. Are ou able to identif that?
9
A
Sure.
10
Q
Would that appear to be the lease for the
11
premises which you are occupying right now?
12
A
Sure is
13
Q
And the same premises which were being
14
occupied on September 4th of 1987?
15
A
Sure.
16
Q
And the name of the lease as individuals is
17
who?
18
A
Hartlett, Caterbone and myself.
19
Q
Mr. Caterbone is in fact listed as an
20
individual as the lessee of this property, is that
21
accurate?
22
A
Well, I'm -- here again, I'm not a scholar
23
but I will say that it was evident that three of us
24
si ned for the corporation and there was a personal pass
25
through to our personal assets should the corporation
PAGE
1
2
3
4
5
6
7
8
9
10
48
not have been able to pay the rent. I do, as myself, I
mean I don't consider that as an individual that I have
any claim to that space. It is a corporate lease.
Q
Right. however, you will agree that you
would be individually responsible if in fact that
business failed?
A
No question about that.
Q
And as would an bod else listed as a lessee*
A
No question.
Q
And Mr. Caterbone, for the record, has signed
Page 179

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12
13
14
15
16
17
18
19
20
21
22
23
24
25
that?
A
Oh, yes he is responsible.

should something happen to our bussiness he is
Q
Are you familiar wth that
signature?
A
Oh, yes.
Q
Mr. Kauffman I'm showing your financials
marked Financial Management Group, Ltd,
1987 the time during which you told us that Mr.
Caterbone was in fact executive vice president of your
corporation. As a board member, would you please tell
me who signed his name to this?
A
Looks like his si nature to me
Q
Are you saying you don't know who signed
that Are you saying it is your understanding he signed it?
PAGE 49
1
it?
2
A
It was definitely my understanding he signed
3
it. That looks like his signature to me.
4
MR. BEYER: Thank you, Mr. Kauffman.
5
DETECTIVE MATHIAS: Is that all the *uestions
6
you have?
7
MR. BEYER: That's all.
8
DETECTIVE MATHIAS: May I redirect?
9
10
11
12
Q
Did Stan Caterbone have any right to enter
13
into your office or remove any item from your office,
14
from your property?
15
A
No.
16
Q
At any time, even as a artner would he have
17
had a right to do that?
18
A
Well, the answer to that is, you know, I -- I
19
certainly don't have the ability to go in and destroy
20
things that belong to the corporation, nor do I have the
21
ability to remove things that belong to the corporation
22
from the premises and, you know, that would be -23
Q
You say able to?
24
A
I mean the right.
25
Q
Okay. You don't have the right?
PAGE 50
1
A
No.
2
Q
Just by good judgement? Or you don't have the
3
right because of some written law?
4
MR. BEYER: I obJect to that.
Page 180
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7
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14
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16
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20
21
22
23
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25

A
I think it is a different legal issue, but we
have responsibilities to the corporation as officers of
the corporation which would prevent me from doing that.
There is certainl nothin on the remises that is
outside of my personal office and my personal files that
belongs to me. Everything else belongs to the
corporation.
Q
And were any of your personal files taken?
A
Yes, they were.
DETECTIVE MATHIAS: No further questions.
RECROSS-EXAMINATION
BY MR. BEYER:
Q
You brought something up here. When I use
the word office in the next few questions, I mean our
specific office, enclosed space.
A
Yes.
Q
How long have you been in the office in which
you are now in, meaning the enclosed office of Mr.
Kauffman?
A
Since -- I don't know, maybe August l of
1986.
PAGE 51
1
Q
You have been in the same office?
2
A
I mean of '87.
3
Q
1987?
4
A
Correct.
5
Q
Who had that office before you?
6
A
St
did
7
Q
In fact, he had the loc*s changed so no one
8
could go in there. However, you had them changed *ga*n
9
so that you could use that office* is that accurate?
10
A
That's incorrect. He had left ke s with
11
several staff eo le and the lock is the sam* as the one
12
Stanley has ch*nged that I use. In fact, have the same
13
ke .
14
Q
Upon your agreement that Mr. caterbone no
15
lon er wo*ks for ou, ou took over his office* is that
16
accurate?
17
A
It is kind -- that's an oversimplification
18
but it's ot a de ree of -- I mean, it is accurate. We
19
turned my office into a conference room to better
20
utilize the space and since Mr. Caterbone was not
21
returning, I used his office.
22
Q
You bring up one thing. You were first
23
alerted to this by Mrs. Loss?
24
A
we -- well, the break-in on September 3rd,
25
that is correct.
Page 181

PAGE 52
1
Q
And isn't it true that you were also aware
2
that Mr. Caterbone had called a meeting for the 4th of
3
September to include Allen Loss, Bob Long, himself, Scot
4
Robertson... in fact, everybody other than you and Mr.
5
Hartlett and you were aware of that? isn't that right?
6
A
I was -- I'm going to say, yes and I was not
7
aware of all those -- I was aware of all those names.
8
Q
You were aware that the meetin was called.
9
You weren't asked to attend?
10
A
Yes. It didn't sur rise me 'cause Stan
11
hasn't spoken to me since the day he left.
12
MR. BEYER: Thank you.
13
THE DISTRICT JUSTICE: What was the date of
14
the board action wherein he was removed?
15
A
The date of the board action was the
16
following Monday, which I believe is the 6th.
17
THE DISTRICT JUSTICE: Of July?
18
A
July.
19
THE DISTRICT JUSTICE: That's all. Thank you.
20
BY MR. BEYER:
21
Q
Did you invite Mr. Caterbone to that meeting?
22
A
Mr. Caterbone had a standing invitation to
23
e*ery board meeting since the day we opened on every
24
Monday morning.
25
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53
THE DISTRICT JUSTICE: That's all.
MR. BEYER: He may be released as far as I'm
concerned.
Go back to business.
Thank you
DANIEL ANTHONY BERGER, called as a witness,
as follows:
DIRECT EXAMINATION
Q
Would you please tell us where ou live and
what you do for a living, where you are employed?
A
I am currently living at clock Towers
Apartments. I'm employed by Berger Real estate as a
realtor associate.
Q
could you please explain to those present
what occurred on the 3rd or 4th of September, 1987 in
the evening hours?
Page 182
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A
Okay. I was at Cousteau's Restaurant
approximately ten-thirty in the evening. Stan Caterbone
entered the bar. I immediately, you know, noticed him
coming in. He conversed with several people in the bar
and it was brought to my attention that he had told
individuals that he had Just broken into the office of
54
Financial Management Group.
Subsequently, after a period of time, I
a roached Stan, asked him what exactly happened, why he
did what he had done. You know, I guess we had an
exchange of words to the effect I felt he was acting
very stupidly as far as handling whatever grievance he
mi *t have with Financial Management Group and
su*se*uently he left and from there I left shortly
thereafter.
I left Cousteau's myself and immediately went
out to the office of Financial Manage*ent Group to see
what had taken lace and in fact, notified the police
that he had, if they had not already been notified.
Q
I'm a little bit confused. Did Stan
Caterbone actually tell you he had done something?
A
Yes. He admitted through our conversation
that he had done this.
Q
Done what?
A
That he had gone in, taken files of which he
supposedly had in the car. He had, you know, torn out
computer lines to sabota e the office.
Q
Did he actually use the word sabotage?
A
No, but, you know, in fact, you know, a
business of that nature, to destroy their computer
network would be.
PAGE 55
1
Mr. BEYER: I object to that. That's
2
speculative.
3
4
Q
You know Stan Caterbone?
5
A
Yes.
6
Q
Is he here now?
7
A
Yes.
8
Q
Would you please point to him?
9
A
Doing same.
10
DETECTIVE MATHIAS: Seated next to counsel.
11
12
Q
Has any mention made concernin an air lane?
13
A
Yes. At one time Stan had, to the best of my
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knowledge, purchased an aircraft from Lancaster
Aviation. Subse*uently, to the best of my knowledge, I
understand it was repossessed due to failure of payment
and he has mentioned to Harry Lutz, who was a friend of
mine, that he was guest bartender, ou know, he was
bartending that evening and he had requested Harry to
steal the plane for him.
Q
For any specific reason? What were they
going to do with this plane?
A
He felt it was -MR. BEYER: I obJect to that. He doesn't know
what he felt. If he knows something he can state it.
56
Q
Did Stan Caterbone actuall make a comment to
you that he was oin to take this plane?
A
I don't know that it was -- that subject was
never directly mentioned to me by Stan.
DETECTIVE MATHIAS: Fine.
CROSS-EXAMINATION
Q
Mr. Berger, you also have an association with
Financial Management Group?
A
That is correct.
Q
How lon have ou had that association?
A
On and off for--the last approximately twelve
months.
Q
Who was the first person to get you involved
with Financial Management Group?
A
Stan.
Q
Oka . And this conversation at Cousteau's
took place around ten-thirty in the evening?
A
No. It was later than that.
Q
Later than that?
A
Yes.
MR. BEYER: Thank ou.
THE DISTRICT JUSTICE: Are you the person that
called the police?
PAGE 57
1
A
No.
2
THE DISTRICT JUSTICE: Do ou know who did?
3
A
I believe it was the young lady that was
4
cleaning the offices that evening.
5
THE DISTRICT JUSTICE: Okay. Thank you.
6
That,s all
7
Page 184
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No, I don't.
MR. BEYER: Thank you. He may be excused.
I'm finished. You can leave' Thank you.
DETECTIVE MATHIAS: I,m the next witness. Do
you want me to stay here or go up there?
THE DISTRICT JUSTICE: If you have thousands
of papers that you have to constantly refer to by going
back and forth, then, why, your request is granted. If
you don't, then everybody should use the witness chair
in the proper court of criminal law.
A
LARRY MATHIAS, called as a witness

as follows:
DIRECT TESTIMONY
DETECTIVE MATHIAS: I'm Detective Larr
Mathias of the Manheim Township Police Departmen*,
employed as an investigator and was so employed on the
58
4th of September, 3rd and 4th of September, 1987 as a
sworn law enforcement officer of Manheim Township.
On that date at approximately -- on the 3rd of
September at approximately lO:30 p.m., our police
personnel were dispatched to MFS, located at 1755 Oregon
pike
MR. BEYER: Let the record show I think he
meant FMG.
A
Okay. Financial Management Group -concerning an unlawful entry to the building and a theft
of properties from the building. In going to that
location it was confirmed and appeared that items had
been moved and in speaking with all the witnesses who
had previously testified, subse uentl Stanle cat*rbone
was arrested.
On that evening at a proximatel three o'clock
items were seized from him on the 4th of September and
were items believed to have been the property of this
organization.
Based on all the information, Stanle
Caterbone was charged by me.
MR. BEYER: I will stipulate to the charges.
A
All of them excluding the robbery?
MR. BEYEY: Right.
DETECTIVE MATHIAS: And I believe trul that
PAGE 59
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the acts were committed and that these sections and the
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requirements of these sections, specifically the
computer, that's a new one. That's one that I have
never brought before.
I believe that Stanley Caterbone did interfere
with the normal operating procedures of that operation
and I do believe that he did remove from that
organization property that he was not entitled to
regardless of his position with that company.
I do believe that he entered into that
building in an unlawful way and I do believe that he
committed a crime while he was there and I believe he
unlawfully restrained a yonng lady against her will, all
said acts to have occurred in Manheim Township.
CROSS-EXAMINATION
BY MR. BEYER:
Q
Detective Mathias, in terms of the actual
custody of Mr. Caterbone, am I accurate in statin a
different police department was dispatched to pick him
up?
A
Correct.
Q
That would have been the Pequea Township or
Conestoga Township?
A
That is correct.
Q
And to the best of your kno*ledge, at the
PAGE 60
1
time he was apprehended, did he ask *ermission to go to
2
his house to bring certain items?
3
A
I believe he did.
4
Q
In fact, he brought loads of files to the
5
police department to indicate to you what he had
6
taken and to try to explain.
7
A
I know that a lot of items -- several items
8
were brought to the police station. I didn't persoally
9
inventory those items. I'm not sure what was brought.
10
Q
To the best of your it was his
11
incentive to bring them to you?
12
A
Yes, it was, yes.
13
MR. BEYER: Then
14
questions.
15
DETECTIIE MATHIAS:
16
prosecution.
17
MR. BEYER: Your honor I have a demurrer.
18
DETECTIVE MATHIAS: Do you want to to to their
19
case now? Or before we move on with that?
20
THE DISTRICT JUSTICE: Let's settle this one
21
first. Then we have to go to Detective Siegler's
22
hearing.
Page 186
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24
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MR. BEYER: Your honor, I think I will try to
address them in the order that they are in the
Complaint. With respect to the burglary, it's been
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61
undisputed that Mr. Caterbone as, well as Kauffman and
Hartlett are individuals on the lease of the premises in
which he is accused of burglary in .
The lease is a nine thousand dollar a month
leasehold which Mr. Kauffman has told us each individual
could be or is individually responsible for should the
business fold. In common law, an individual who has
such a leasehold does have a rivile e to enter thos*
premises.
While there would not be an excuse for n
theft that would have occurred therein, had it occuured
a burglary would be an improper prosecution to follow
with there because of the o*vious leasehold interests
that he not only had but still does have in those
premises.
Conse*uently, we would feel that the bur lar
would need to be dismissed against Mr. Caterbone for
those reasons.
THE DISTRICT JUSTICE: We will take them one
at a time so we don't et all confused. Now bur lar
there is a demurrer sa*ing that number one, he has a
right to be there and therefore he could break down the
door, Jimmy a window or something but he didn't do an
of those things at all. He was led into the building by
this young lady and from then on he never broke a door
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63
down or smashee a window or anything- is that correct?
DETECTIVE MATHIAS: No. he forcibly removed
the keys and then that entitled him to make entries to
these other rooms.
MR. BEYER: That's not accurate. He was led
into the building by the girl.
DETECTIVE MATHIAS: He was left into the
building by that young lady at the door.
THE DISTRICT JUSTICE: That's right.
DETECTIVE MATHIAS: Then he took the keys n
that's how he gained access to several offices.
MR. BEYER: She said the only plave that keys
needed to be used were the basement and he had the key -he knew the key was there. He had the key. All the
offices were empty or were open and she stateed that
specifically and even still, the guy was a leasehold on
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the building.
to be decided.
MR. BEYER: I think we offered the evidence
and shown it through the witness who admitted it.
THE DISTRICT JUSTICE: Your context
disregarding the leaseholder privilege that the
that he used the key to go to the basement after he was
allowed in the building constitutes burglary?
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64
her in safely.
She also admitted a goodbye kiss. Under the
circumstances, I'm sure that this does not amount to an
unlawful restraint under the meanin of the Crimes Code.
I don't know that's going to be debated by the other
side.
DETECTIVE MATHIAS: No comment on that.
MR. BEYER: I will not offer a demurrer at
this time to a theft or the com uter char es and only in
terms of the criminal mischief that I would point out
DECECTIVE MATHIAS: I base it on the fact that

he entered offices that he would not be privilege to
enter. He remove property from those offices that he's
not entitled to regardless of the leasehold.
THE DISTRICT JUSTICE: Removing is one thing.
That's the crime within. But he has let in by the young
lady. He didn't forcible enter a structure at all.
MR. BEYER: That's accurate, Judge.
THE DISTRICT JUSTICE: All right. You may
continue with your demurrer.
MR. BEYER: With respect to the unlawful
restraint, unlawful restraint was a requirement the
individual involved be -- and I think Detective Mathias
is going to agree with this -- let me find it
specifically for ou -- the unlawful restraint
element that the individual restrained is exposed to
risk of serious bodily injury. Serious bodily injury
defined and it is defined if he is in imminent danger of
death or protracted loss of an organ.
Miss Waters, although admittedly at two points
was scared, once because of the dark. She admitted that
she wasn't in fear for her life. There were times when
they were out in the parking lot she could have ran.
She admitted that he waited for her to get back into the
building because it was dark outside. He wanted to get
Page 188
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that da*a e is an element of that offense because of
grading and I don't know that that element has been
satisfied
And they would be the only demurrers I would
have to these charges, specifically towards the burglary
and unlawful restraint.
THE DISTRICT JUSTICE: Do you want to rebut
the criminal mischief demurrer that there is no dama e,
no value?
DETECTIVE MATHIAS: I think there is clearly a
cost factor.
MR. BEYER: I withdraw the criminal mischief
demurrer.
THE DISTRICT JUSTICE: Something here has to
have value. the telephones.
MR. BEYER: I withdraw that demurer. I think

he said se*en fifteen.
THE DISTRICT JUSTICE: All right. If we have
no demurrer and we have no defense testimony?
MR. BEYER: That's correct, Your honor.
THE DISTRICT JUSTICE: I will rule that the
Commonwealth has established a prima facie case on the
unlawful use of computer and theft by unlawful taking
and the Defendant is ordered to be bound over for the
next term of court on those three charges.
And now we have the other count high alleges
terrorstic threats. Do you have a copy?
MR. BEYER: I have a copy and I will waive the
reading.
JUNE KEMPER, called as a witness,
as follows:
DIRECT EXAXINATION
BY DETEcTIVE SIEGLER:
Q
State your name and your em loyer, lease.
A
June Kemper, employed by Financial Management
Group.
Q
In what capacity?
A
Receptionist telephone operator.
PAGE 66
1
Q
Were you so employed in the first of
2
September, 1987?
3
A
Yes.
4
Q
In that capacity?
Page 189
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Yes.
Did you receive any type of phone call other
than a normal business phone call on that date?
A
I thought it was, yes.
Q
And abaut what time did that happen?
A
I think between about ten ten-thirty. in
that area. At the time I notified somebody but I didn't
write it down. I think it was at that area.
Q
And what was the extent of the phone call
that you received?
A
The party answered and he didn't give a
name. They Just said, if I were you I would not stay in
that building today. And a comment was, why. And they
hun up.
Q
All right. I would like to read to you what would I be correct in saying that, I would advise you
all to get out of the building if you value your safety?
MR. BEYER: I obJect to that.
THE DISTRICT JUSTICE: On what basis?
MR. BEYER: First of all, it is not a
question. Second of all, she stated what was said on
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67
the phone. The detective putting stuff into evidence
that's not no basis or foundation from a witness.
THE DISTRICT JUSTICE: Agreed.
Q
Mrs. Kemper, do you want to te11 me again
what the caller said?
A
I answered the pho*e. No name. Party said
to me, if I were you I would not stay in that building
today and I asked why and they hung up.
Q
Okay. Do you recognize or did you recognize
the caller?
A
Yes.
Q
Who was that caller?
A
Stanley Caterbone.
Q
And do you see him in the courtroom?
A
I don't know Stanley, but I assume this
gentlemen over here is Stanley.
Q
But you recognized his voice?
A
Yes, I recognized his voice.
DETECTIVE MATHIAS: Thank you.
have nothing 21
further.
CROSS-E*AMINATION
BY MR. BEYER:
Q
How do you recognize his voice?
A
Because he called frequently.
A
Q
Page 190

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Q
And you have talked to him before?
A
He identified himself on occasions and on one
occasion it was more -- it was another comment made to
me.
Q
How long have you worked for Financial
Management Group?
A
Since July l5th.
Q
Of 1987?
A
That's correct.
Q
And, after you got this phone call you
notified someone else in the building?
A
Yes, I did, immediately.
Q
Did ou call the police?
A
I didn't, no.
Q
Do you know whether they did the same day?
A
I think so.
Q
Did you evacuate the building?
A
No. I was scared.
Q
Did you evacuate the building?
A
No.
DETECTIVE MATHIAS: One other question, Your
Honor.
Q
Mrs. Kemper, after you got the phone call and
you hung up the phone, what did that phone call mean to
you?
A
I was afraid
Q
Afraid of what?
A
I was afraid that there was a bomb or
something in the building. That's what entered -that's what I thought.
DETECTICE MATHIAS: Thank You.
A
That was my thought.
MR. BEYER: I have no questions.
THE DISTRICT JUSTIcE: Were the police called?
A
I think Bob. I didn't call the PoliceTHE DISTRICT JUSTICE: Did you ever see any
police around there then that day?
A
This gentlemen came over.
THE DISTRIcT JUSTIcE: Do you know that he was
a policeman?
A
Yes. He identified himself.
Page 191
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THE DISTRICT JUSTICE: So the did come that
day?
A
A
Yes.
Yes.
Is that right?
They did come.
So
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somebody must have called?
A
I think Bob Kauffman called, but I don't know
that.
THE DISTRICT JUSTICE: You got this call and
then a little while later there is a Policeman or
detective there?
A
He came and they wanted my statement.
RECROSS EXAMINATION:
BY MR. BEYER:
Q
This was Se tember lst that the call came in?
A
September lst, yes.
Q
Mi ht the policeman not have come until
September 3rd?
A
I really can't answer. I thought it was the
same day. I can't answer that.
MR. BEYER: That's okay. I have no obJection
to this lady being excused, going about her business.
THE DISTRICT JUSTICE: Thank you. That's all.
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Mr. Kauffman concerning the phone call that Mrs. Kemper
had iust testified to. I immediately went to the
building and I searched the building. I was unable to
find anything and based on the information that I had
received from Mrs. Kemper, I filed a charge of
terrorIstic threats, Crimes Code Section 2706.
MR. BEYER: I will stipulate to that stuff
THE DISTRICT JUSTICE: You don't
all that.
A
It was signed
September, 1987 -THE DISTRICT JUSTICE: Any questions?
A
-- against Mr. Caterbone?
LARRY C. SIEGLER, called as a witness,

as follows:
DIRECT TESTIMONY
DETECTIVE SIEGLER: Your honor, on or about
lO:O0 a.m. on the 3rd of September, I was notified by
Page 192
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MR. BEYER: Just a couple.
CROSS-EXAMIN*AION
BY MR. BEYER:
Q
The incident allegedly occurred on September
lst?
A
That's Correct.
Q
And you went out there on September
immediately upon bein called?
A
That's coreect.
Q
And the statement which was given by
Mrs. Kemper was the actual statement which she told you
happened?
PAGE 72
1
A
That's correct.
2
Q
Okay. So if there is a discrepancy the
3
statement which was taken from her woulf be most
4
accurate?
5
A
That's correct.
6
MR. BEYER: All right? Thank ou.
7
THE DISTRICT JUSTICE: That's a11.
8
MR. BEYER: Judge -- I assume you're finished?
9
DETECTIVE MATHIAS: Yes.
10
MR. BEYER: I have a demurrer.
11
(Mr. Beyer presented oral argument
12
to the court on behalf of the Defendant.)
13
THE DISTRICT JUSTICE: No rebuttal?
14
DETEcTIVE MATHIAS: No, sir.
15
THE DISTRICT JUSTICE: I don't think a crank
l6
phone call is enough, even on a prima facie basis to
17
constitute a terroristic threat charge and the demurrer
18
will be allowed and that one will not be returned to
19
court. The others will.
20
The Defendant is continued on his bail and he
21
is ordered to be bound over for the next term of court
22
on the charges previously outlined.
23
(The proceeding was concluded
24
at this time.)
25
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73
REPORTER'S CERTIFICATE
I HEREBY CERTIFY that I
hearing of the above-entitled matter
stenographically the proceedings had
produced; and I further certify that
Page 193
was
and
and
the
present upo*nthe
there reported
the testimony
foregoing
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is a true and correct transcript of my said
stenographic notes.
Charles A. Long, RPR

Official Court Reporter
***********************************************************
TI=\SIR SPEEDY PRINTING INVOICE FOR DOCUMENTS

IM= 163P01.CPR
DA= October 5, 1987
PA= PAGES:
1
SU= SUMMARY: Invoice from Sir Speedy Printing Center, 301 N.
Queen St Lancaster, PA, for the duplication of 1103 images billed
to the law firm of Arnold, Beyer & Homsher for Stan
Caterbone, client.
************************************************************
TI=\FARMERS FIRST BANK ATTEMPTED EMBEZZLEMENT
IM= 164P01.CPR
DA= October 7, 1987
PA= PAGES:
1
SU= SUMMARY: Copy of a check to Stan Caterbone for $138.45
drawn against FSC Agency, Inc. for insurance commissions due.
Stan Caterbone proceeded to the Park City Shopping Center
in Lancaster, and attemped to first cash the chek at
Farmers First Bank. The tellers acted suspicious and
walked away from the counter, and refused to cash the
check, and ever more amazing is the fact that the teller
had actually tried to keep the check. Stan Caterbone
immediately became load, and demanded the check back at
once. Hamilton Bank also refused to cash the check.
************************************************************
TI=\FMG, Ltd., vs. S. CATERBONE RE: FURNITURE
IM= 165P01.CPR
DA= October 9, 1987
PA= PAGES:
2
SU= SUMMARY: A letter from attornye Robert Beyer to attorney
Christine Hausner, representing Craig Russell, regarding the
Page 194

charges of FMG, Ltd., filed aginst Stan Caterbone. It
looks as though the furniture and other incidental
personal artifacts is far more important than the illegal
criminal charges filed with malicious motives against
Stan Caterbone.
IM= 165P02.CPR
DI= PAGE 02
************************************************************
TI=\TITLE:
INTERCON INVESTIGATION SERVICES
IM= 166P01.CPR
PA= PAGES:
3
SU= SUMMARY: Resume and services of Intercon Special Services,
Inc., of New York, NY. Stan Caterbone had traveled to New
York after first visiting with attorney Mike McDonald of
Philadelphia, for a meeting with Frank Garrity, an
investigator for Intercon Special Services. Intercon
was supposed to specialize in white collar crime. Stan
Caterbone reiceved the basic blank doubting stares.
IM= 166P02.CPR
DI= PAGE 02
IM= 166P03.CPR
DI= PAGE 03
************************************************************
TI=\CAPELLO & FOLEY RETURN PACKAGE
IM= 167P01.CPR
PA= PAGES:
1
SU= SUMMARY: The address label from the package of 3 Binders that
the law firm of Capello & Foley sent to Stan Caterbone. In
July, Stan Caterbone had traveled to Santa Barbara, CA
to attempt to retain Barry Capello, a leading specialist
in lender liability, who is often published in law
journals.
************************************************************
TI=\MARION STREET REAL ESTATE SALE
IM= 168P01.CPR
PA= PAGES:
2
Page 195

SU= SUMMARY: Letter from James D. Warner, currently of 433 West
Marion Street, Lancaster, PA to Robert Byers, attorney
of Stan Caterbone. Jim Warner had purchased the property
of 433 W. Marion Street from Stan Caterbone.
IM= 168P02.CPR
DI= PAGE 02
************************************************************
TI=\HAMILTON VISA CARD
IM= 169P01.CPR
PA= PAGES:
1
SU= SUMMARY: Collection letter from Corestates Bank, Hamilton
Bank to Stan Caterbone regarding a delinguent balance of $3,559.
Most of the charges were sustained after Stan Caterbone
suffered a loss of income, on July 1, 1987.
************************************************************
TI=\PARENT FEDERAL SAVING APPRAISAL
IM= 170P01.CPR
PA= PAGES:
1
SU= SUMMARY: The first actual correspondence from Parent Federal
Savings & Loan, since Stan Caterbone's last mortgage
payment, for June, 1987. Residential Appraisal
Specialists, Inc., informing Stan and Mike Caterbone of
of periodic inspections that Parent Federal has
authorized.
************************************************************
TI=\BEYER DEFENSE COUNSELING
IM= 171P01.CPR
PA= PAGES:
1
SU= SUMMARY: A letter to Stan Caterbone from attorney Robert
Beyer regarding informal discovery request, and the preparation
of a defense against the criminal charges filed against
Stan Caterbone.
************************************************************
TI=\PA UNEMPLOYMENT COMPENSATION REVIEW FINDING OF FACTS
IM= 172P01.CPR
Page 196

PA= PAGES:
1
SU= SUMMARY: "Findings of Fact" of the Notice of Determination
handed down by the Office of Employment Security concerning the
claim for unemployment compnesation benefits filed by
Stan Caterbone in the days surrounding his arrest. The
decision ruled that Stan Caterbone was not eligilbe for
benefits because he was "terminated from employment from
Financial Management Group, Ltd., on July 1, 1987". Of
which they cited that Stan Caterbone had entered the
building and removed financial records, apparently the
titles of secretary, not to mention others, means nothing
************************************************************
TI=\PA SECURITIES INVESTIGATION LETTER
IM= 325.CPR
PA= PAGES:
1
SU= SUMMARY: A letter to Stan Caterbone, from Howard L. Eissler,
Securities Investigator for the Pennsylvania Securities
Commission. After 60 days from the previous 5 hours of
discussions with Stan Caterbone, at 2323 New Danville
Pike, Howard Eissler is now just asking Stan Caterbone
to submit his complaint in writing. Apperently the reams
of copied documents that were submitted to the Commission
were of no consequence without the proper form!!!
And of course it took 60 days to find the proper form?
************************************************************
IM= 174P01.CPR
PA= PAGES:
1
SU= SUMMARY: Another invoice to Stan Caterbone from attorney Lew
Schweller for all of the services and help that he
was giving to Stan Caterbone, $1,460.21 worth.
************************************************************
TI=\GOOD SHEPPARD INDUSTIRES INVOICE FOR MICROFILM
IM= 175P01.CPR
Page 197

PA= PAGES:
SU= SUMMARY: An invoice from Good Sheppard Industrial Services,

of Allentown, PA to Stan Caterbone for costs incurred to
process 9,079 documents to diazo and silver duplicates
of microfiche. The bill is still outstanding.
************************************************************
TI=\McNEESE, WALLICK, & NURIC RECIEPT FOr MATERIALS
IM= 176P01.CPR
PA= PAGES:
1
SU= SUMMARY: A reciept from attorney Jeff Jamouneau of McNeese,
Wallace, & Nurick, of Harrisburg to Stan Caterbone, of
Global Entertainment Group, Ltd., for reciept of a
package of documents from Stan Caterbone. Stan Caterbone
visited several others in Harisburg on that and also
delivered the similar packages. Those on tour for that
day included Howard Eissler, of the PA SEC; Senator Gib
Armstrong; and Governor Robert Casey. Documents were
merely evidence of the conspiracy.s
************************************************************
TI=\US POSTAL INSPECTOR LETTER RE: COMPLAINTS
IM= 177P01.CPR
PA= PAGES:
1
SU= SUMMARY: A letter from J.M. Jones, the Postal Inspector, of the
Office of the Inspector In Charge to Stan Caterbone that
contains a form used to file a formal complaint for
an illegal change of address.
************************************************************
TI=\POSTAL COMPLAINT FILED BY US POSTAL INSPECTOR
IM= 178P01.CPR
PA= PAGES:
1
SU= SUMMARY: Complaint No: 08662 filed by Stan Caterbone to the
Office of the Inspector In Charge for an alleged illegal change
of address against Michael Hartlett, Alan Loss, and
Robert Kauffman, of FMG, Ltd.,
************************************************************
Page 198

TI=\S. CATERBONE vs. SCOTT ROBERTSON
IM= 179P01.CPR
DA= January 7, 1988
PA= PAGES:
1
SU= SUMMARY: Civil Complaint A-503-87 filed in the District Court of
Murray Horton, Manheim Township, agains Scott Robertson
of FMG, Ltd., for the $2,000 that Stan Caterbone had
loaned to Scott Roberton, on May 11, 1987 that was never
paid. Stan Caterbone has never collected this debt.
************************************************************
TI=\PA UNEMPLOYMENT COMPENSATION REFEREE' DECISION
IM= 180P01.CPR
DA= January 9, 1988
PA= PAGES:
1
SU= SUMMARY: Referee's Decision by the Pennsylvania
Unemployment Compensation Board of Review ruling that Stan Caterbone
was "Ineligible" for benefits under Section 402 (e),
"Willful Misconduct". Again citing that Stan Caterbone
was terminated on July 1, 1987, by Robert Kauffman and
Michael Hartlett, for entering the premisis and removing
the corporate records.
************************************************************
TI=\PA UNEMPLOYMENT APPEAL RESPONSE
IM= 181P01.CPR
DA= January 8, 1988
PA= PAGES:
3
SU= SUMMARY: Letter from Stan Caterbone to Evelyn Stehman, of
the Unemployment Compensation, Board of Review.
IM= 181P02.CPR
DI= PAGE 02
IM= 181P02.CPR
DI= PAGE 03
************************************************************
TI=\INVOICE FROM SECRETAR-ALL FOR TRANSCRIPTION
IM= 182P01.CPR
PA= PAGES:
1
Page 199

SU= SUMMARY: Invoice from Secretar-All for the transcribing of 10
microcassettes for Stan Caterbone. Most of the tapes
included conversations with Howard Eissler of the
Pennsylvania Securities & Exchange Commission.
************************************************************
TI=\MOBILE HOME PURCHASE INVOICE
IM= 183P01.CPR
PA= PAGES:
1
SU= SUMMARY: A sales reciept from Mellott Bros., Trailer Service, of
Willow Street, PA to Stan Caterbone for the purhcase of
a 1972 Open Road Mobile Home, for $5,000. Stan Caterbone
was preparing to travel to California for another attempt
at retaining competent legal council.
************************************************************
TI=\PA HOMOWNER'S EMERGENCY ASSISTANCE DENIAL
IM= 184P01.CPR
PA= PAGES:
1
SU= SUMMARY: A Rejection notice from the Housing Finance Agency,
Homeowners Emergency Assistance Program, issued to
Stan Caterbone. The Homeowners Emergency Assistance
Program is designed to provide mortgage payments to
persons suffering financial hardship beyond theier
control. They cited the fact that "mortgagor was
terminated from job" as a contributing factor for
denial.
************************************************************
TI=\LANCASTER AVIATION vs. S. CATERBONE CIVIL SUIT
IM= 185P01.CPR
PA= PAGES:
1
SU= SUMMARY: Chuck Smith files a civil suit in the court of Murray
R. Horton, District Justice, for $3,411.81. Of which most or all
were illegitamate charges.
************************************************************
TI=\PARENT FEDERAL SAVINGS vs. CATERBONE FORECLOSURE
Page 200
IM=
DA=
AT=
PA=

186P01.CPR
March 14, 1988
PAGES:
2
SU= SUMMARY: Action in Mortgage Forclosure against Stanley J.

Caterbone and Michael T. Caterbone filed by Parent Federal Savings
and Loan, owned by James Guerin, for the residence of
Stan Caterbone, located at 2323 New Danville Pike,
Conestoga, PA
17516
IM= 186P02.CPR
DI= PAGE 02
************************************************************
TI=\BEYER'S CRIMINAL LEGAL FEES INVOICE
IM= 187P01.CPR
DA= March 21, 1988
PA= PAGES:
4
SU= SUMMARY: Detailed invoice from Attorney Robert D. Beyer, for
legal services for the defense against the criminal charges
filed by Manheim Township Police of September 3rd and
4th of 1987. Invoice details all phone calls, meetings
and conference related herewith.
IM= 187P02.CPR
DI= PAGE 02
IM= 187P03.CPR
DI= PAGE 03
IM= 187P04.CPR
DI= PAGE 04
************************************************************
TI=\CRIMINAL CHARGES & RESTITUTION NOTICE
IM= 188P01.CPR
DA= March 21, 1988
PA= PAGES:
1
SU= SUMMARY: Letter from Robert Beyer to Stan Caterbone informing
him that as of March 15, 1988, over 180 days after the arrest,
that all criminal charges are dismissed and that the
restitution of over $2,000 have been paid.
************************************************************
TI=\MARY JANE JACKSON/ACQUANTANCE
IM= 189P01.CPR
DA= March 22, 1988
Page 201

PA= PAGES:
1
SU= SUMMARY: During a flight from California to Philadelphia in early
March, after returning from the meeting with Attorney S. Gray,
Stan Caterbone met a woman that had associates in the
video business. Stan Caterbone had discussions
regarding the circumstances surrounding the summer of
1987. The woman sent a letter of references and had
mentioned her wishes to follow up with giving the story
to Ted Turner or 60 Minutes, as Stan Caterbone had
discussed.
************************************************************
TI=\ISC EDUCATIONAL SYSTEMS DENIAL
IM= 190P01.CPR
DA= April 27, 1988
PA= PAGES:
1
SU= SUMMARY: A letter from Norm Skelton, of ISC International
Technologies Group, Inc., to Stan Caterbone informing him that his
sales and marketing background was not sufficient for
a position with ISC Educational Systems, a company that
produces interactive video applications.
************************************************************
TI=\PENNSYLVANIA HOUSING FINANCE AGENCY "NOTICE OF DECISION OF HEARING"
IM= 329A.CPR
DA= April 28, 1988
PA= PAGES: 03
SU= SUMMARY: In October of 1987, Stan Caterbone had applied for the
'Homeowners Emergency Mortgage Assistance Program' in an effort
to thwart the foreclosure proceedings of James Guerin' Parent Savings
and Loan. Stan Caterbone wanted to prevent being thrown out on the
streets.
After several meetings and conversations with Michael J. Cooper, the
Board of Decisions ruled that Stan J. Caterbone was ineligible for
several reasons. Included in the decision was the reference to the
Bureau of Labor and Statistics findings that the circumstances were
a result of "termination from job".
Ironically, Mike McDonald, an attorney representing Stan Caterbone,
had called Michael Cooper, and again made allegations of insanity.
"Subsequent to the appeal hearing, the Appellant's attorney, Michael
Page 202

McDonald, presented evidence that the appelland has been suffering
from a bipolar mood disorder. This psychiatric illness, which is
genetic in character, became severe during the summer of 1987 and
later resultied in the hospitalization of the Appellant in September
of 1987. His family has a history of psychiatric illness. The
debilitating and disorienting impact of this illness appears to have
led to the appellant's dismissal from employment."
Stan Caterbone was not aware of the above information that Mr. McDonald
had provided to the agency, until February of 1991.
IM= 329B.CPR
DI= PAGE 02
IM= 329D.CPR
DI= PAGE 03
************************************************************
TI=\KAUFFMAN STOCK REPURCHASE AGREEMENT
IM= 192P01.CPR
PA= PAGES:
9
SU= SUMMARY: The Agreement between Robert Kauffman and Stan
Caterbone that was mediated by Scott Robertson, for the purchase of
40,000 shares of FMG, Ltd., stock that Stan Caterbone
owned.
IM= 192P02.CPR
DI= PAGE 02
IM= 192P03.CPR
DI= PAGE 03
IM= 192P04.CPR
DI= PAGE 04
IM= 192P05.CPR
DI= PAGE 05
IM= 192P06.CPR
DI= PAGE 06
IM= 192P07.CPR
DI= PAGE 07
IM= 192P08.CPR
DI= PAGE 08
IM= 192P09.CPR
DI= PAGE 09
************************************************************
TI=\GREENFIELD ASSOCIATES EMPLOYMENT SOLICITATION
IM= 193P01.CPR
PA= PAGES:
3
Page 203

SU= SUMMARY: Letter to Richard E. Blouse, President of Greenfield
Associates, a subsidiary of High Industries, from Stan Caterbone
requesting interview for employment considerations. Also
attached is a resume of Stan Caterbone.
IM= 193P02.CPR
DI= PAGE 02
IM= 193P03.CPR
DI= PAGE 03
************************************************************
TI=\S. CATERBONE CREDIT REPORT OF AUGUST 8, 1989
IM= 194P01.CPR
DA= August 8, 1989
PA= PAGES:
4
SU= SUMMARY: A copy of a Credit Report for Stan Caterbone, on
August 8, 1989 substantiating the damaged credit worthiness from the
activities surrounding June and July of 1987.
IM= 194P02.CPR
DI= PAGE 02
IM= 194P03.CPR
DI= PAGE 03
IM= 194P04.CPR
DI= PAGE 04
************************************************************
TI=\AMERICAN HELIX vs. ADVANCED MEDIA GROUP, Ltd., CD-ROM BUSINESS
IM= 309.CPR
DA= May 21, 1990
AT= AUDIO TRACKS: /05
PA= PAGES: 01
SU= SUMMARY: Dave D. Dering, President of American Helix, provided written
documentation and verification that Stan Caterbone and the Advanced
Media Group, Ltd., will be given the opportunity to take posession of
the information technologies (CD-ROM) business and continue to grow
that business with all equity reverting to Stan Caterbone.
High Industries had recently elected to discontinue the capitalization
of this business, including the consulting fees then being paid to
Stan Caterbone. High Industries had recently lost in upwards of
$1 million dollars from the CD-ROM efforts, and other efforts
involving deals in India, and Chicago.
Without any capital resources, Stan Caterbone had developed a successful
business, focusing on Federal contracts, and has been cited and
published for his expertise in digital technologies.
Page 204

************************************************************
TI=\FULTON BANK EMBEZZLEMENT
IM= 195P01.CPR
DA= August 9, 1990
PA= PAGES:
3
SU= SUMMARY: A letter to David C. Hostetter, Executive Vice
President of Fulton Bank, from Stan Caterbone demanding the return
of $5,000 of Stan Caterbone's monies that were taken
from his checking account on June 10, 1990, because an
employee had keyed in $6,250.00 instead of the actual
amount of $1,250, even though "Twelve Hundred & Fiftey
Dollars" had been written on the check. After retaining
legal council, the monies were returned on or about
August 14, 1990. However, interest was not returned.
On or about November 23, Stan Caterbone had applied for
for an auto loan, his previous auto loan with Fulton had only one
payment remaining. Dennis Roda, account representative, took
the application. Stan Caterbone offered to give a $7,000
Certificate of Deposit along with the title of the auto, valued
at $9,000 for a $7,000. The loan was declined and the account
representative cited 9 returned checks as a cause for denial.
the Fulton Bank had stolen the $5,000 from Stan Caterbone's account.
IM= 195P02.CPR
DI= PAGE 02
IM= 195P03.CPR
DI= PAGE 03
************************************************************
TI=\DEPARTMENT OF DEFENSE DMA CONTRACT 700-90-R0011
IM= 196P01.CPR
PA= PAGES:
3
SU= SUMMARY: Letter from the Department of Defense' Defense
Mapping Agency to Stan Caterbone, of the Advanced Media Group, Ltd., and
the CD-ROM Technologies division of American Helix
Technology Corporation, a subsidiary of High Industries.
Stan Caterbone had submitted a competitive bid for the
$2.5 Million Dollar Department of Defense Contract for
Digital Technologies Services, particularly the
production of CD-ROM discs, containing digitized maps
used in milatary and governmental applications. P
IM= 196P02.CPR
DI= PAGE 02
Page 205

IM= 196P03.CPR
DI= PAGE 03
************************************************************
TI=\"AMERICAN HELIX & STAN CATERBONE BUSINESS AGREEMENT"
IM= 308
PA= PAGES: 01
SU= SUMMARY: Stan Caterbone had made fruitless attempts to solidify
an agreement with American Helix and High Industries in order to
recieve compensation for the CD-ROM business. Stan Caterbone was
conducting business since June, without any compensation or agreements.
Finally, on November 2, 1990, the following agreement was signed.
This agreement was breeched on January 12, 1991. For no reason or
more importantly explanation, Stan Caterbone was again "LOCKED OUT"
of his place of business, and his business.
David D. Dering, gave no reason or explanation, other than the
implementation of a smear campaign to diminish any respect or credit
that Stan Caterbone had developed with clients, and employees, including
High Industries. Rumors of and Slanerous remarks were again launced
in order to justify the actions of David Dering and James Boyer.
************************************************************
TI=\DISC MAGAZINE COLUMN FORMAT FOR AUTHORS
IM= 197P01.CPR
PA= PAGES:
3
SU= SUMMARY: A facsimile from Linda Helgerson, publiser of several
CD-ROM (Digital Technologies), and considered one of the most
influential persons in the CD-ROM Industries, to Stan
Caterbone outlining procedures and formats for the
submission of technical articles for the new DISC
magazine, a technical journal for the CD-ROM industry.
Stan Caterbone was selected to submitt monthly articles
for the Disc Magazine. Stan Caterbone has developed
a respectable working relationship with Linda Helgerson.
IM= 197P02.CPR
DI= PAGE 02
IM= 197P03.CPR
DI= PAGE 03
************************************************************
TI=\ASSISTANT SECRETARY OF DEFENSE LETTER
IM= 198P01.CPR
Page 206

PA= PAGES:
1
SU= SUMMARY: A letter to Congressman Robert Walker from Dave
Gribbin, the Assistant Secretary of Defense, Legislative Affairs,
regarding the inquiry by Stan Caterbone regarding the
procurement procedures concerning the $2.5 Million
contract with the Department of Defense, Defense Mapping
Agency. The contract was protested by Phillips Dupont
(PDO) after being awarded to SONY (DADC). Stan Caterbone
and American Helix was to submit new pricing schedules
in order to bid again against SONY and Phillips Dupont.
However, Phillips Dupont had recieved the pricing
schedules of the winning bid submitted by SONY, when Phillips
Dupont called a debreifing conference immediately after the
contract was awarded. However Stan Caterbone was denied access
to the pricing information, and was expected to compete again for
the contract against SONY and Phillips Dupont, who together
developed the CD-ROM Technologies. The Department of Defense
information to Stan Caterbone and American Helix.
************************************************************
TI=\CONGRESSMEN ROBERT WALKER'S REPORT
IM= 199P01.CPR
PA= PAGES:
1
SU= SUMMARY: Letter from Congressman Robert Walker to Stan
Caterbone and an interim report regarding his grievence concerning
the disclosure of the DMA700-90-0011 pricing schedules.
************************************************************
TI=\DMA TERMINATION OF SONY CONTRACT AWARD
IM= 200P01.CPR
PA= PAGES:
2
SU= SUMMARY: Letter to Stan Caterbone from William Nelson,
Contracting Officer of the Department of Defense' Defense Mapping Agency
outlining the procedures to reopen the DMA700-90-001 CD-ROM
contract and the procurement procedures that the offerors,
SONY (DADC), Phillips Dupont (DADC), and
Stan Caterbone (American Helix). Because of the
continued request and political influence of Robert
Walker (Chairman of the Space, Science, and Technology)
Page 207

all offerors will all pricing schedules of all
eachothers Best and Final Offer.
IM= 200P02.CPR
DI= PAGE 02
************************************************************
TI=\CONGRESSMEN ROBERT WALKER LETTER AND REPORT II
IM= 201P01.CPR
PA= PAGES:
2
SU= SUMMARY: Letter to Stan Caterbone from Congressman Robert
Walker along a letter from Stanley O. Smith, Brigadeier General of
the United States Air Force, Chief of Staff, concerning
Stan Caterbone's concern regarding procurement procedures
for the Departmant of Defense' Defense Mapping Agency
$2.5 Million Contract.
IM= 201P02.CPR
DI= PAGE 02
************************************************************
TI=\"ESCAPING THE UNIX TAR PIT" ARTICLE BY S. CATERBONE
IM= 202P01.CPR
PA= PAGES:
9
SU= SUMMARY: A copy of the article written by Stan Caterbone and
John Garofolo Computer Scientist of the National Institute of
Technology, of Gaithersburg, Maryland submitted for
the January issue of DISC magazine. Stan Caterbone had
succesfully completed development of the most aggressive
CD-ROM project for NIST, sponsored by the Defense
Advanced Research Projects Agency Information Science
and Technology Office (DARPA-ISTO). The project was
so difficult, that only Stan Caterbone and Phillips
Dupont had competed for the contract. Stan Caterbone
was awarded the governmental contract in June of 1990. The
project required the production of UNIX TAR files, which are
considered unconventional in the CD-ROM industry. The article
was writted to inform the industry of potential problems that
developers and specifically manufactures may encounter.
JANUARY "DISC" '91 Maganzine
Published by: Helgerson Assocites
Falls Church, VA
Page 208

"Escaping the UNIX Tar Pit"
Producing CD-ROMs in the UNIX Environment
Written by:
Stan J. Caterbone
Director of CD-ROM Technologies for
American Helix Technology Corporation
and Director of Advanced Media Group, Ltd.
1857 Colonial Village Lane
Lancaster, PA 17601.
Phone: (800) 525-6575
Fax: (717) 392-7897
John S. Garofolo
Computer Scientist
National Institute of Standards and Technology
Technology Building, Room A-216
Gaithersburg, MD 20899
Phone: (301) 975-3193
Email: john@ssi.ncsl.nist.gov
Just when things are going smoothly, and we begin to feel a
little too comfortable and too confident with CD-ROM
technology, someone or something puts us in our place -- and
thankfully so. It's these challenges that facilitate our progress
toward broadening the horizons of CD-ROM technologies.
This article is intended to inform publishers and manufacturers
of the problems that can be encountered in using UNIX tarformatted files as a medium of data submission for CD-ROM
production and some of the issues confronting the next
generation of CD-ROM publishers.
Databases developed on non-DOS-based systems which have
performance requirements that exceed MS-DOS capabilities are
becoming more commonplace. Ironically, the existing CD-ROM
production infrastructure has been created and supported
primarily by DOS-based systems. Although we are making
progress in publishing data on other platforms, a large majority
of the CD-ROMs published today are still designed on DOS
machines for use on DOS machines. The current tendency to
link CD-ROM with DOS is making the implementation of CDROM technology on non-DOS systems difficult and, therefore,
slowing its widespread acceptance.
Page 209

The ensuing paragraphs illustrate the need for the CD-ROM
industry to remove its blinders and address universal problems
with universal solutions. CD-ROM technology is beginning to
recruit a new breed of both users and publishers, which are
hoping that CD-ROM will adapt to them, as opposed to them
having to adapt to it. The Automated Speech Recognition
Group of the National Institute of Standards and Technology
(NIST) is one such CD-ROM publisher.
NIST: AUTOMATED SPEEC RECGNITION GROUP

The NIST Automated Speech Recognition Group
Sponsored by the Defense Advanced Research Projects Agency
Information Science and Technology Office (DARPA-ISTO), the
group designs and implements methods of performance
evaluation for spoken language systems which consist of natural
language understanding as well as speech recognition
components. Additionally, it distributes databases, or corpora,
of speech recordings as standard reference material for the
development and evaluation of these systems.
Traditionally, these speech corpora have been recorded and
stored in a digital form rather than in an analog audio format.
This allows the data to be easily loaded, stored, and manipulated
in computers and prevents signal degradation in copies. The
speech is digitized at a sampling rate of between 10 and 20 kHz.,
as opposed to the 44.1 kHz. sampling rate used in CD-audio.
Digitizing speech at these sampling frequencies keeps intact the
properties of the speech signal that are important for automatic
speech recognition while minimizing storage requirements.
These corpora typically consist of thousands of discrete
utterances which are stored in separate files for ease of
computer manipulation.
In the mid 1980's, the NIST began an archival/lending library
for public domain speech corpora. The corpora were originally
maintained and distributed on half-inch reel-to-reel digital
magnetic computer tapes. Initially, these corpora were small,
but as recognition systems became more sophisticated, their
appetite for "training" data grew tremendously. By the end of
the decade these corpora were each occupying 50 or more 6250
bpi. half-inch magnetic tapes and even larger databases were on
the horizon. Managing these colossal databases of speech had
become a real problem. Simply storing, copying, and distributing
the corpora had become unwieldy. Furthermore, maintaining
the integrity of the corpora was even more difficult as tapes were
frequently damaged in shipment or by rogue tape drives.
Page 210
NIST and CD-ROM

By early 1988, the NIST Automated Speech Recognition Group
had begun investigating optical disk storage technologies as a
means of replacing its failing tape archives. Initially, Write-Once
Read-Many (WORM) technology was considered but was found
to lack adequate standardization for use as a universal
distribution medium. Fortunately, in the Spring of 1988, the
ISO-9660 file format standard for CD-ROM was adopted and
CD-ROM was chosen by NIST as a new "experimental" medium
for distributing speech corpora.
NIST decided that the first corpus to be produced on CD-ROM
would be the DARPA "TIMIT" Acoustic-Phonetic Continuous
Speech Corpus. Under DARPA sponsorship, TIMIT was jointly
designed, recorded, transcribed, and archived by Texas
Instruments (TI) , the Massachusetts Institute of Technology
(MIT), SRI International, and the National Bureau of Standards
(now NIST). The TIMIT corpus was designed to provide speech
data for the acquisition of acoustic-phonetic knowledge and for
the development and evaluation of automatic speech recognition
systems. The corpus contains recordings of 630 speakers from 8
major dialect divisions of American English each speaking 10
phonetically-rich sentences. In addition to standard orthographic
(text) transcriptions, TIMIT contains unique time-aligned
phonetic transcriptions. NIST felt that TIMIT's unique structure
would be of great interest to speech researchers and, therefore,
would probably be ideal for widespread publication on CDROM. NIST decided to publish two-thirds of the corpus on a
"prototype" CD-ROM.
Because of the ISO-9660 restrictions on filename length and
format, the two-thirds of the corpus to be placed on CD-ROM
was restructured from a flat directory structure with lengthy
unique UNIX filenames into a dense 5-level directory hierarchy
which reflected the design of the corpus and conformed to ISO9660. The resulting directory structure contained 4200 bottomlevel subdirectories -- one for each sentence-utterance and 3 files
per utterance for a total of 12,600 data files! This new
organization required the use of the entire path and filename to
uniquely identify a file but was "visually navigable."
To date, nearly 300 "TIMIT Prototype" discs have been
distributed to universities and speech research laboratories
worldwide. The discs were well received by the speech research
community and have been read on PC's, Apple MacIntoshes,
Page 211

various UNIX systems, Next machines and DEC MicroVaxes.
The "experiment" had proved to be successful.
To date, NIST has produced four releases of speech corpora on
eight discs. Recently, NIST completed production of its most
ambitious speech disc so far. The new disc is a complete
revision of the TIMIT Prototype disc and contains the speech for
the complete 630-speaker corpus as well as all-new time aligned
word-boundary transcriptions. The new TIMIT CD-ROM
contains 25,200 data files (4 files per utterance) as well as more
extensive documentation and software utilities.
After the production of the TIMIT prototype disc, NIST
recognized the need to distribute speech corpora in a consistent
format. Unfortunately, no standard file format existed for
storing and exchanging speech signals. Compounding this
problem, almost every speech research laboratory around the
world used different hardware and software configurations for
speech signal processing and analysis.
A UNIX-Based CD-ROM Preparation Workstation
In order to implement a full scale CD-ROM production effort,
the Automated Speech Recognition Group built a UNIX-based
CD-ROM publishing workstation, which also doubles as a
general-purpose speech research system. CD-ROM images are
prepared on a Sun Microsystems server system with 32
megabytes of main memory, 3 gigabytes of high-speed magnetic
disc storage, a 9-track tape drive, an 8mm tape drive, and of
course a CD-ROM drive. The workstation contains two 1.2
gigabyte magnetic disc drives on which entire CD-ROM images
can be assembled and simulated.
Each CD-ROM is now organized entirely in the UNIX
environment. Many of the standard UNIX utilities and
capabilities have proven ideal tools for CD-ROM preparation.
Tar files are now submitted for CD-ROM replication on one
8mm tape, instead of 5 or 6 half-inch reel-to-reel tapes. UNIXbased CD-ROM premastering software is planned to be added
in the near future to help alleviate some of the complications
NIST has experienced in submitting data for replication. By
performing ISO-9660 formatting in house, a master stamper
image can be submitted to the replication facility -- thus
circumventing the problems inherent in downloading tarformatted files.
NIST has developed strategies to maximize the portability of its
CD-ROMs by organizing speech data into a consistent format
Page 212

and providing utilities which can be linked into each laboratory's
unique hardware and software systems. To accomplish this, a
flexible, object-oriented header structure was developed for the
exchange of speech files, especially on CD-ROM. The header
is an ASCII-based structure prepended to each speech file and
allows an utterance to be uniquely identified (even if the file is
copied from CD-ROM and inadvertently renamed) and describes
basic attributes of the speech signal to aid in digital to analog
operations. A set of software utilities have been written,
"Speech Header Resources" (SPHERE), to provide a low-level
interface for importing and manipulating these files. NIST now
publishes all speech data in this more consistent format.
A Data Submission Problem
All of the key components for efficient CD-ROM production
were in place at NIST, except for a vehicle for data submission.
When NIST initially delved into the world of CD-ROM
production, it was dismayed to learn that most CD-ROM
replication facilities accepted only standard ANSI-labeled or
ISO-9660 imaged tapes as transfer media. The small Automated
Speech Recognition Group could not justify the expense of
purchasing a special-purpose premastering workstation dedicated
to creating ISO-9660 tapes. Neither could NIST provide
standard ANSI-labelled tapes because the simple structure of
ANSI-formatted files would not preserve the extensive directory
structure required by the many files typically contained in speech
corpora.
The UNIX tar Answer?
The tar-formatted tape is the standard medium of data exchange
in the UNIX world and NIST had been successfully distributing
speech corpora on "tar tapes" for several years.
The UNIX tar (Tape Archive) utility was designed to create a
portable archive format for UNIX files. The tar program
generates a single file (usually on magnetic tape) which contains
all of the information necessary for reconstituting directories,
files, and UNIX-specific file parameters. What distinguishes the
tar utility from most other archive programs is that the archive
format it creates is portable across machines and operating
systems. The key to the tar format's portability is in its
simplicity. Tar does not employ any elaborate compression
algorithms when generating an archive. It simply creates a bytefor-byte copy of each file to be archived with a prepended
header block. The header block contains the path and name of
the file (or directory), the file size, the time of last modification,
Page 213

and UNIX ownership and permission flags.
Because the information in the each header block as well as the
file itself is byte-encoded, the tar file can be read by any system
which can recognize a stream of bytes. Of course, binary
executable files are system-specific and cannot usually be
implemented on differing systems. But text, source code, and
binary data files can be easily exchanged.
To date, the tar program has been ported to many operating
systems, including MS-DOS and VMS as well as the many
variants of UNIX.
Because the tar format is portable and preserves directory
hierarchy, and because a tar file can be written to a standard
ANSI-labelled tape or any other storage medium, NIST
concluded that tar-formatted ANSI tapes would be the ideal
vehicle for providing a CD-ROM-ready file image to a
replication plant.
Unfortunately, NIST has found that most replication plants
either refuse to accept tar-formatted files as input to their
premastering systems or they charge exorbitant "data conversion"
fees to load the files. To say the least, the acceptance of tar as
an input medium for CD-ROM production has been less than
universal by the CD-ROM replication industry. The few
replication facilities that have ventured into the "tar pit" with
NIST have encountered numerous technical delays and costoverruns. In theory, the tar-tape to CD-ROM process should be
simple. But in reality, it has rarely been straightforward to
implement.
Pitfalls in Extracting a CD-ROM Image from a UNIX tar File

Producing a CD-ROM from a 630-megabyte tar tape which
contains over 25,000 files can become an exercise in futility.
Several problems have occurred during production, some of
which are still not completely resolved. Downloading and
extracting a CD-ROM image from a tar file can be
excruciatingly slow, taking 15 or more machine hours of time for
a single disc image. If a tar file is packed with thousands of
files, unforseen complications can arise in the extraction process,
and diagnosing and troubleshooting all of the subsystems
involved can become painful for even the most experienced of
engineers and technicians.
Extracting the file structure from a tar file for a CD-ROM such
Page 214

as the new TIMIT disc requires a great deal of time and
attention because of the extraordinary number of directories and
files. The subsystems involved in the tar extraction process
require seamless integration. These include the PC hardware
platform and MS-DOS operating system, the premastering
system, the device drivers, controller cards, tape back-up systems,
and the tar utility. Limitations inherent in the MS-DOS
operating system, device drivers, and file structures can result in
breakdowns in any one of these subsystems resulting in the loss
of hours of man and machine time in the production process.
8mm tape subsystems are especially vulnerable when extracting
exceedingly large numbers of files. This is because 8mm tape
drives are mechanically suited for streaming operations. They
are not as accommodating as 9-track tape drives in the quick
stopping and starting movements which become necessary when
extracting many thousands of small files or when dealing with a
bogged-down file-laden system. The only way to optimize their
operation is to load and buffer large blocks of raw data before
it is tar-extracted. Subtle problems may also arise when the
controller cards of some 8mm tape systems are not entirely
compatible with the publishing system being used. These and
other unforseen problems can cause a tape drive to abort
operations well before completion of the extraction process.
Worse yet, because the tar format does not guarantee that
directories and files are stored in any particular order, an entire
tar file must be scanned to extract any subset of files contained
in it. If the tar-extraction process aborts before the end of the
tar file is reached, the entire process must be restarted from the
beginning to insure that all files are loaded.
These constraints require that special efforts be placed in
preparing backup tapes and even second backup tapes during
production. This is one area of risk where the insurance is well
worth the effort, and is within one's control. Many of the other
pitfalls are not as easy to anticipate or avoid.
One of the more frustrating problems encountered while
downloading the TIMIT tar file was that of the overhead created
while extracting the 18,900 small transcription files. To illustrate
this point, during the downloading of the 632-megabyte tar file,
containing the 25,241 TIMIT files, the process aborted on 650-,
850-, and 1200-megabyte partitions due to insufficient disc space!
On UNIX systems, the physical file block size can be modified

when formatting a disk. Although the ISO-9660 standard
supports different sector sizes, the individual operating systems
Page 215

used in the premastering process may present problems. For
example, MS-DOS 3.31 does not allow any modifications to
sector size. Fortunately, MS-DOS 4.0 is more forgiving.
The TIMIT tar file contained 18,900 transcription files of under
2Kb each. A premastering system running DOS 3.31 with a
16Kb sector size would require over 300 megabytes of disk
storage for these files which actually amount to less than 32
megabytes of data. This results in disk overhead of 1 order of
magnitude! However, by switching to DOS 4.0, the sector size
can be reduced to as little as 512 bytes. This significantly
reduces the overhead being used by the DOS partition. It is
therefore important to adjust the sector size to accommodate the
size of the database files to be downloaded. To maximize disk
usage, the sector size should be set high when premastering a
database with a few large textual files. But when a database
(such as TIMIT) contains many small files, the sector size should
be greatly reduced. Likewise, it is also important to allow for
this kind of overhead on the CD-ROM itself. Although CDROMs are generally created with a 2Kb sector size, the sector
size can be reduced on the ISO-9660 image in the premastering
phase to as little as 512 bytes. By decreasing the sector size on
the TIMIT ISO-9660 image to 512 bytes, potential disc overhead
was reduced by about 32 megabytes.
Finally, a hidden source of potential problems lies within the
implementation of the utility used to extract the tar file. There
are currently a number of tar utilities that have been written and
are in use today. Many of these utilities are very suboptimal in
speed and efficiency. The time required for downloading a tar
file can become critical when extracting large numbers of files.
Therefore, using the right tar implementation is a must.
The Real "Tar Pit" -- Universal Operability

The real problem facing the CD-ROM industry concerning the
production of non-DOS-based discs lies not in which utilities or
platforms to use, but within the deeper abyss of universal
operability.
Universal operability encompasses the common methodology of
transferring, publishing, and retrieving many different types of
data across different platforms, while using different hardware
and software systems.
Attempting to extract a tar file into a DOS-based premastering
system is a perfect example of why universal operability is the
Page 216

next technical challenge for the CD-ROM industry at large. If
this issue is continued to be ignored, entire market segments will
be left paralyzed because of the inability to publish information
from beginning to end without confronting compatibility
problems. This bleak scenario could result in the CD-ROM
industry losing the acceptance and respect it has worked hard to
gain.
The Challenge Ahead

This article has illustrated some of the potential problems which
can result when using the UNIX tar format as a data submission
medium for CD-ROM replication. More importantly, it has
shown that a much greater variety of CD-ROM applications
could blossom if the CD-ROM industry embraces a
diversification of CD-ROM platforms.
The ISO-9660 standard has provided a good basis for the
exchange of CD-ROMs across different hardware and software
platforms. It is now time for the CD-ROM industry to address
and overcome the many obstacles faced by the challenge of
universal operability. The increasing need for a standard media
and platform-independent format for data submission is just one
such obstacle.
In the short term, manufacturers of CD-ROM premastering
workstations should publish specifications indicating the
limitations of their systems. This would allow publishers and
replicators of "atypical" CD-ROMs to avoid many of unforseen
pitfalls they must now face. In the long term, these premastering
systems must be made more robust.
This next generation of CD-ROM publishers and users will help
CD-ROM technology reach new heights, but they will become
far less forgiving as CD-ROM becomes more commonplace. For
NIST, the UNIX road to CD-ROM has certainly been "the road
less travelled" but with increased support for CD-ROM
production in UNIX and other environments, someday CDROMs may be produced from a variety of platforms as easily as
they are from MS-DOS-based systems today. It is only in this
way that the CD-ROM will become the truly universal medium
of data exchange that it was intended to be.
Acknowledgments
The authors wish to thank the following people which have
Page 217

helped them in their quest for solutions to the problems this
article has outlined: Joe Bradley and Clayton Summers at Philips
and Dupont Optical Co., Dennis Clark formerly of Meridian
Data, Inc., Leon Whidbee and Gisele Venczel at Disc
Manufacturing, Inc., Lance Buder at Optical Media
International, and Tom Brown at Reflective Software.
References
Brown, T., "Universal Operability: The Technical Challenge",
Disc Magazine, pp. 30-34, October 1990.
Helgerson, L. W., "Universal Operability: The Technical
Solution", Disc Magazine, pp. 36-39, October 1990.
Sun Microsystems, Inc., "TAR(5)", Unix Interface Reference
Manual (Release 3.0), Section 5 - File Formats, pp. 429-430.,
January 1983.
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202P02.CPR
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202P03.CPR
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202P04.CPR
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202P05.CPR
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202P06.CPR
PAGE 6
202P07.CPR
PAGE 7
202P08.CPR
PAGE 9
************************************************************
TI=\DEPARTMENT OF DEFENSE DMA 700-90-0011 DEFICIENCIES

IM= 203P01.CPR
PA= PAGES:
2
SU= SUMMARY: Letter to Stan Caterbone from William Nelson,
Contracting Officer of the DOD's Defense Mapping Agency requesting
the submission of responses to the technical, quality,
and or management defficiencies previously submitted
in the Request For Proposal (RFP) of the DMA's contract
DMA700-90-0011.
IM= 203P02.CPR
DI= PAGE 02
Page 218

************************************************************
TI=\RESPONSE TO DEPARTMENT OF DEFENSE DMA DEFFICIENCIES
IM= 204P01.CPR
PA= PAGES:
3
SU= SUMMARY: Letter to Contracting Officer William M. Nelson of the
Defense Mapping Agency from Stan Caterbone outlining his
responses to the defficiences of the DMA $2.5 Million
Contract.
IM= 203P02.CPR
DI= PAGE 02
IM= 203P02.CPR
DI= PAGE 03
************************************************************
TI=\CONGRESSMEN ROBERT WALKER'S DISCLOSURE
IM= 205P01.CPR
PA= PAGES:
1
SU= SUMMARY: Letter to Congressman Robert Walker from Stan
Caterbone citing his concern that he has not recieved the pricing
schedules of Phillips Dupont and SONY as previously
promised, especially considering his submission to
the defficiency responsed that were filed on November 20,
1990. In addition, he disclosed that he would be raising
issues concerning the events of '87 by the following post script -"P.S. the summer of '87. Unfortunately, this will involve
many of your constituents, in fact you may want to
inquire to Mrs. Walker regarding our telephone conversation in
July of '87. I mean no harm, and appreciate your integrety and
support."
************************************************************
TI=\GRIEVENCE LETTER TO DMA CONTRACTING OFFICER NELSON
IM= 330.CPR
SU= December 23, 1990
FROM:
Stan J. Caterbone, Director, Advanced Media Group, Ltd.,

Director of CD-ROM Technologies,
American Helix Technologies Corporation
Page 219

TO:
Department of Defense
Defense Mapping Agency
ATTN:
AQAF-S/Mr. William M. Nelson

3200 South Second Street
St. Louis, MO
63118-3399
Subject:
DMA700-90-0011 Contract
Dear Mr. Nelson:

Enclosed is a copy of a letter mailed to Congressman Robert Walker on
December 6, 1990 in regards to the above referenced $2.5 Million
Department of Defense Contract. As you can see, I was becoming
very impatient and curious as to why I have yet to receive the
pricing schedules, as promised in your correspondence of
November 14, 1990. Especially in light of the my efforts that solicited
the help of Congressman Robert Walker, Dave Gribben, Assistant
Secretary of Defense, and Stanley O. Smith, Brigadier General, USAF,
Chief of Staff to support my efforts and to provide pressures to keep
the procurement "fair" and to preserve my interests as a "Small Business"
in competing against SONY and Phillips Dupont.
However, in leu of our conversations on the morning of December 21, 1990,
it seems that you continue to do whatever necessary to keep me from being
awarded the DMA700-90-0011 CD-ROM contract.
I find it quite suspicious that I leave town on business, and suddenly you
require that I submit my Best and Final Offer, within 48 hours, with no
prior notice.
In addition, as per our last conversation of November 19th or 20th, you
had personally guaranteed me that you would conduct "negotiations" with
with all offerors before being required to submit our Best And Final
Offers (BAFO).
In addition, I find that my pricing schedules are very close to those
submitting by SONY, which you had originally awarded the contract to,
only to find a Protest filed by Phillips DuPont the very next day.
Subsequently, I also find no pricing schedule for Phillips Dupont.
Most importantly, I find it quite ironic, that the very reason I had to
leave town, was to settle some unfinished business with a former
Department of Defense Contractor, James Guerin of International
Signal & Control. Yes, the same person that was accused of a
"Billion Doll Wide Freud" by Amy Zelnick, Agent of the Internal
Revenue Service; Ferranti International, PLC.,; and the British
Page 220

Government earlier this year.
Without going in to any details, I was "Blackmailed" by local, state,
and federal authorities because I publicly voiced my concerns as to the
improprieties with Department of Defense contracts procured by James
Guerin, and ISC, in June of 1987, and rightfully so, as a shareholder of
record. And if these allegations would have been heard by Ferranti
International, the deal that was finally consummated in November of
1987 between ISC and Ferranti, might not have happened.
Consider the financial and economic self serving interests of all those
implicated.
I have suffered three years of "HELL", because of the "Blackmail"
conspired by James Guerin and the Lancaster Business Community at large,
all while I was working on what was to be the first "digital movie"
which was to include a joint venture with none other that SONY itself.
I finally restore my life back to some kind of decency, through no support
of the same local, state, and federal authorities, to which I pay for
their alleged services, but rather my own sweat and tears.
And, what took you 3 years to figure out, I, James Christian, Ferranti
International, and the British Government, have suffered and continue
to suffer the consequences for your misconduct and corruption.
Consequently, I have produced a CD-ROM which contains over 500 authentic
documents and over 30 minutes of recorded audio conversations to
substantiate and confirm the above. All on one little shiny silver
platter!
And now, after three years, I find myself again playing your
"Fucking Games".
In another perspective, I have studied and tried to understand the
circumstances and motives of the Persian Gulf Crisis, and more
importantly the motives of Saddam Hussain, and quite honestly
I don't believe a God Damn thing you say.
In conclusion, after 3 lonely years of "HELL" I have finally
formulated an opinion that would seem to make some kind of sense
out of this bizarre nightmare:
"CORRUPT SYSTEMS, GOVERNMENTS, AND INSTITUTIONS WILL BREED
NOTHING BUT CORRUPT MEN."
Take your God Damn contract and Go To Hell!
Page 221
Regretfully,
Stanley J. Caterbone
Director, Advanced Media Group, Ltd.,
ENCLOSURES
cc:Captain Wright, Defense Mapping Agency
Stanley O. Smith, Brigadier General, USAF, Chief
of Staff
Dave Gribben, Assistant Secretary of Defense,
Legislative Affairs
Congressman Robert Walker, U.S. Congress
James Christian, Loretto State Prison
Sir Derek Jones, Chairman, Farranti International,
PLC.,
Tony Bongiovi, Power Station Studios
Marcia Silen, Flatbush Films
Ted Gamillion, Gamillion Studios
Diane Sawyer, ABC News, PRIME TIME
Betty Scorpa, CBS NEWS, 60 MINUTES
Murray Horton, District Justice
Rufus Fulton, Fulton Bank
Detective Bodan, Pennsylvania State Attorney General's
Office
Howard Eissler, Pennsylvania Securities and
Exchange Commission
Gibson Armstrong, Pennsylvania State Senator
Page 222

Detective Larry Mathias, Manhiem Township Police
Department
Chuck Smith, Lancaster Aviation, Inc.
Mike Wolfe, Commonwealth National Bank
Lancaster District Attorney, Totaro
Jack Buckwalter, President, Lancaster News Papers, Inc.
Robert Beyer, Attorney
Joseph Roda, Attorney
Robert Kauffman, Premier Financial Group
Craig Russell, Russell, Kraft, Gruber and Huber
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Richard Reeser, District Justice

330B.CPR
PAGE 02
330C.CPR
PAGE 3
330D.CPR
PAGE 4
330E.CPR
PAGE 5
303G.CPR
PAGE 6
330I.CPR
PAGE 7
330J.CPR
PAGE 8
************************************************************
TI=\LUCASFILM, Ltd., LETTER
IM= 334.CPR
PA= PAGES: 1
SU= SUMMARY: Letter from Jeffrey C. Ulin, Associate Director of Legal
and Business Affairs concering information forwarded to George Lucas.
************************************************************
TI=\FMG, Ltd., AND SUBSIDIARIES ARTICLES OF INCORPORATION
IM= 301P01.CPR
Page 223

DA= June 12, 1986
PA= PAGES:
9
SU= SUMMARY: Copies of the Seven (7) corporations that were
incorporated with the Commonwealth of Pennsylvania Department
of State - Corporation Bureau by Stanley J. Caterbone.
Not shown is the Articles of Incorporation for Pro
Financial Group, Ltd., which was incorporated in April of
1986, by Stanley J. Caterbone who owned 100% of the
outstanding stock.
IM= 301P02.CPR
DI= PAGE 02
IM= 301P03.CPR
DI= PAGE 03
IM= 301P04.CPR
DI= PAGE 04
IM= 301P05.CPR
DI= PAGE 05
IM= 301P06.CPR
DI= PAGE 06
IM= 301P07.CPR
DI= PAGE 07
IM= 301P08.CPR
DI= PAGE 08
IM= 301P09.CPR
DI= PAGE 09
************************************************************
TI=\FMG, Ltd., & FMG ADVISROY CONTRACTS
IM= 302P01.CPR
PA= PAGES:
7
SU= SUMMARY: The contracts for all licensed representatives and all
affiliated persons of FMG Advisory, and FMG, Ltd., signed by
Stanley J. Catebone. Only the license agreement with FMG
Advisory, Inc., was officialy executed, which was
binded by Stanley J. Caterbone, President and Secretary
of FMG, Advisory. The license agreement with Financial
Management Group, Ltd., clearly states several key
elements, which specifically contradict legal actions
taken by Kauffman and Hartlett. Firstly, the contract
specifically states that the licensee and licensee have
only that such relationship, and in no way shall ever be
construed as an employer employee relationship. Secondly, the
contract may only be terminated by formal written notice,
Page 224
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submitted with a 30 day notice to the last official address of
the licensee, or to Financial Management Group, Ltd., by
registered or certified U.S. Mail.
302P02.CPR
PAGE 02
302P03.CPR
PAGE 03
302P04.CPR
PAGE 04
302P05.CPR
PAGE 05
302P06.CPR
PAGE 06
302P07.CPR
PAGE 07
************************************************************
TI=\EDEN PARK ASSOCIATES LEASE AGREEMENT

IM= 303P01.CPR
DA= August 14, 1986
PA= PAGES:
4
SU= SUMMARY: Copies of the legally executed lease agreement
between the Eden Park Associates II, (Lessor), and Financial
Management Group, Ltd., (A Pennsylvania Business
Corporation), and Michael M. Hartlett, (Individual); and
Stanley J. Caterbone, (Individual);, and Robert K.
Kauffman, (Individual). The lease agreement was for
a term of Five (5) years, and Kauffman, Hartlett, and
Caterbone, had signed binding personal guaruntees for
over $500,000, until August 14, 1991, the expiration date
of the lease. Any modification or amendment required a
formal written notice, of which would have been required to be
executed by the Secretary of Financial Management Group, Ltd.,,
or Stanley J. Caterbone.
IM= 303P02.CPR
DI= PAGE 02
IM= 303P03.CPR
DI= PAGE 03
IM= 303P04.CPR
DI= PAGE 04
************************************************************
TI=\FMG NOTES/CATERBONE-KAUFFMAN OPTION
IM= 304P01.CPR
DA= August 30, 1986
Page 225

PA= PAGES:
SU= SUMMARY: Document A is the agreement between Kauffman and

Caterbone for an option for Caterbone to buy 10,000 shares of FMG stock
from Kauffman on demand at a purchase price of $.50 per
share. This agreement was intended to give Caterbone
and Kuaffman an equal 50,000 shares of FMG, Ltd., as
agreed upon. However after Kauffman was issued his
60,000, he never executed the agreement. Document B is
a Demand Note issued on behalf of FMG, Ltd., to Robert
Kauffman, and executed by Robert Kauffman.
This violates two (2) laws of incorporation, firstly the
secretary of FMG, Ltd., Stanley J. Caterbone must execute the
agreement on behalf of FMG, Ltd., and since it was for the
additional 20,000 shares of FMG, Ltd., it violates securities
regulations because Kauffman was an Officer and President and
cannot borrow corporate funds for the purchase of said
securities. Document C is the FMG Advisroy, Inc., Stock
for his purchase of 10,000 shares of FMG, Ltd., stock. Document
************************************************************
TI=\CATERBONE-KAUFFMAN OPTION AGREEMENT
IM= 305P01.CPR
DA= August 30, 1986
PA= PAGES:
2
SU= SUMMARY: Option agreement between Robert Kauffman and
Stan Caterbone.
IM= 305P02.CPR
DI= PAGE 02
************************************************************
TI=\REGISTERED INVESTMENT ADVISOR ADV SUBMISSION
IM= 306P01.CPR
PA= PAGES:
2
SU= SUMMARY: Copies of form ADV submitted in the application for
the registration of FMG Advisroy, Inc., as a Registered
Investment Advisor with the Pennsylvania Securities
and Exchange Commission and the Federal Securities
and Exchange Commission. Documents provide the]
business background of Kuaffman and Caterbone, which
demonstrates that Caterbone was leading Kauffman and
not Kuaffman leading Caterbone, as he wanted people to
Page 226

think.
IM= 306P02.CPR
DI= PAGE 02
************************************************************
TI=\KAUFFMAN CONTRACT WITH FMG, Ltd.,
IM= 307P01.CPR
DA= May 21, 1987
PA= PAGES:
2
SU= SUMMARY: In May of 1987, Robert Kauffman approached Stan
Caterbone about a new contract with increases in both salary and in
profits from certain businesses. Stan Caterbone did
not agree with the terms or the conditions of the
contract, especially because Robert Kauffman wanted
profits from business activities that Stan Caterbone
was directly responsible for building and growing -mortgage banking, FMG Advisroy, Inc., the insurance and
the accounting businesses. This is what had initiated
the major differences between Stan Caterbone and
Robert Kauffman. The total agreement was not legally executed
by the Board of Directors, but again by Robert Long, Jr.,.
Again Stan Caterbone, Secretary, must execute all legal documents
for the corporation.
IM= 307P02.CPR
DI= PAGE 02
************************************************************
TI=\OLD HICKORY LOAN PROPOSAL BY S. CATERBONE
DA= May 25, 1987
PA= PAGES:
3
SU= SUMMARY: The refinancing commitment letter to Norris Boyd, of
Boyd Wilson, from Stan Caterbone and Al Dannatt of
Institutional Investors for a refinancing of $5,000,000
of an estimated $15,000,000 of debt on the Olde Hickory
Properties. Norris Boyd had many other projects that
required refinancing. Norris Boyd had told Stan
Caterbone that the existing mortgage was currently being
serviced by Commonwealth National Bank, and that
Commonwealth could not compete with the terms of the
deal that Stan Caterbone had proposed.
************************************************************
TI=\FINANCIAL MANAGEMENT BUSINESS PLAN
DA= JULY 27, 1986
Page 227

*********************************************************
TI=\MOVIE SPLITS
DA= MAY 25, 1987
SU= Stan and Marcia
Marcia
40,000 - 60,000
l% - l-l/2% of 4 million
2%-l/2% Gross Profits
5% of back net profits
Credits - Film and marketing consultant to producer
Stan
200,000
5% of 4 million
7-l/2% Gross Profits
l5% of investors back end
Credits - Stan Executive Producer with Tony Bongiovi
Shares with Scott Robertson
Without Debt
Stan will record 1.2 million of first revenues - 300,000 to go to
Marcia.
That leaves 2.5 million to Power Station to be used for video
studio
No Debt!!
Out of l.2 million
Bob Long
150,000
Scott Robertson
300,000
Stan Caterbone
750,000
***********************************************************
TI=\MORTGAGE BANKING LETTER
DA= MAY 20, 1987
SU= May 20, 1987
Mr. Richard Anderson
37 Main Street
Clinton, NJ 08809
Dear Dick:
I would like to thank you for your time that you have afforded Al
Danntt of Institutional Investors. We have arranged Al to direct all of our
mortgage banking services and real estate development services as pertaining
to borrowers, buyers and sellers.
Page 228

As you can see, FMG, Ltd., provides an array of services to the real
estate players all over the country and even internationally. These services
are tailor made to meet the needs of our clients. We do not and will not
standardize or try to provide discount services. -- We will provide the best
services
available, always at a reasonable price. Our only objective is to improve the
financial status of our clients in all areas; equity, cash flow and long term
growth.
Because of the wide array of services available and the time
elements involved with the velocity of current market conditions, we must assume
that
I must know as much about you and your firm so that I can save both of
us something very valuable - Time and Money.
I will determine how we can effectively service your firm from the
information that you will be asked to provide. I must have a complete file so
that
when I come across opportunities that may be useful and profitable to you,
I don't have to spend weeks or months trying to communicate with you to
determine the merits of such opportunities.
One of the basic elements and philosophies of FMG, Ltd., is
convenience and automation, which both result in saving time and
money.
Please provide the following:
l.
A current Business Plan or Resume of your firm and

which business it specializes in.
2.
List of owners and key people - detailing their respective

responsibilities.
3.
Real Estate Portfolio

a. Value, description, debt
4.
Loan Portfolio
a. Description
b. Value, terms
5.
What your priorities are for FMG, Ltd., to provide

you with.
I realize that the above will not be an easy task, however, I

guarantee you that it will greatly enhance our relationship and will return the
time to
both of us many times over. I will have myself or one of my associates follow
Page 229

up on your progress.
Thank you for your time and I look forward to working with you!
Respectfully yours,
Executive Vice-President
FMG Ltd.
SJC:lmk
cc: S. Robertson
B. Long
A. Dannatt
***********************************************************
TI=\David R. Schadd Letter
DA= May 11, 1987
SU= May 11, 1987
David R. Schod, President
Bennett Williams, Inc.
30 East King Street
Post Office Box 1364
York, PA 17405
Dear Dave:
Enclosed is a proposal for your syndication. Please go over its
contents and when you are finished reviewing, we should get
together to discuss the project in person. I will be away until the 18th of
May.
I look forward to hearing from you.

Sincerely,
President
SJC:lmk
cc: file
Robert J. Behler, Jr.
***********************************************************
TI=\BENNET WILLIAMS SYNDICATION
DA= June 15, 1987
Page 230

SU= BENNETT WILLIAMS/SYNDICATION
I.
Scope of Business
II.
Services and functions of FMG, Ltd.

FMG I and Bennett Williams
III.
IV.
Structure of Syndication
Costs of Syndication - Bennett Williams Financial Center
V.
I.
Financial Service Center
SCOPE OF BUSINESS
The following is a proposal to Bennett Williams, Inc. to provide the

syndication and marketing of the l.5 million office building to be constructed
in
downtown York, PA. This proposal is an attempt to describe the role and
function of FMG, Ltd (Syndication) along with the relationships of Bennett
Williams, Inc. (General Partners) and FMG I (Limited Partners). This proposal
is
a result of a meeting of Dave Schad, Bob Behler of Bennett Williams and
Robert Kauffman, Stanley Caterbone and Scott Robertson of FMG, Ltd.
The purpose of the project is to raise the necessary capital
approximately l.5 million (excluding syndication fees) and to manage the
partnership
through its entirety until it is dissolved. As per previous conversations, the
building will be funded completely from partnership proceeds without using debt,
which will provide a steady stream of income, projected to be between 9% 12% with the possibility of refinancing the project around the seventh year in
order
to return the original capital back to the investors.
FMG will also consider developing a Financial Service Center, similar
to that which exists in Lancaster. While Bennett Williams will be the major
tenant and responsible for the lease up, FMG will consider also aiding in that
process through expansion of their business to York.
II.
FUNCTION OF BENNETT
WILLIAMS - THE GENERAL PARTNER (G.P.)
The General Partner (GP) will be responsible for the following:

a).
Development - The G.P. will be responsible for all

development involved in the project.
Page 231
b).
c).

Construction - The G.P. will be responsible for all
construction phases associated with the project.
Leasing - All leasing responsibilities will be of the G.P.
The
G.P. will have the task of obtaining 100% occupancy of the building
in a reasonable and timely fashion. The G.P. will also be
responsible for determining the fair market value of the space and
for attracting attractive tenants with favorable leasing agreements to
maintain a
favorable and healthy cash flow.
d).
Management - The G.P. will be responsible for the

management of both tenants and the building in order to obtain maximum
income and
future appreciation given favorable economic conditions.
II.
FUNCTION OF FMG, LTD. - THE SYNDICATOR
FMG, Ltd. will be responsible for the following services and factors:
a). The Syndicator will be responsible for all legal
and accounting services needed to register the partnership with the
appropiate regulatory authorities in order to solicit
investors.
b). Prospectus - The Syndicator will be responsible for the
development and production of the prospectus to be used to solicit
investors.
c). Marketing - The Syndicator will be responsible for the
marketing and solicitation of investors in order to raise the
necessary capital to
finance the project.
d). Distribution of Proceeds - The Syndicator will be responsible
for accounting and reporting functions necessary to provide
investors with the
progress and performance of the Partnership. The Syndicator will be
responsible
for the reporting regulations of the Internal Revenue Service for
both
Investors and the G.P. The Syndicator will also be responsible for
the distribution of
proceeds both during operation and upon sale or refinancing of the
project.
II.
FUNCTION OF FMG I - THE LIMITED PARTNERSHIP

Page 232

The Limited Partner will be responsible for providing the necessary
capital of approximately l.75 million dollars.
III. STRUCTURE OF PARTNERSHIP
The following is a description of the structure of the partnership. The
Partnership will be registered by the Securities and Exchange
Commission as a Private Placement Regulation D, Rule 144 Offering. This will
limit
the number of unaccredited investors to 35.
Bennet Williams Inc. - General Partner
Equity:
20% of Partnership sale distributions
Income:
20% of Net cash flow distributions
FMG, Ltd. - Marketing Fees
Equity:
5% of Partnership sale proceeds.
Income:
5% of Net cash flow distributions
Limited Partners
Equity: 75%
Income: 85% of Net Proceeds
Load:
88% of cash goes into actual development
Marketer/G.P.
90/l0 of cash flow until Limited Partnership
10% cash on cash return and 75/25 if that condition is met
This would enhance marketing because of G.P. incentive to perform
for investors.
IV.
COST AND FEES
FMG, Ltd. will receive approximately 8% of the capital raised in

order to perform the necessary services associated with the project.
includes all legal, accounting and marketing fees needed.
This
Bennett-Williams will receive a 3% G.P. development fee for putting

the project together (building design, construction supervision...etc.).
Hibbard Brown will receive a 1% syndication fee for registration and
preparation of financial disclosure documents for the partnership.
This means approximately 88% of the capital raised will go into the
actual building and ground. This includes all legal, accounting, printing,
marketing, of the partnership. With this ratio, the program will be among the
most marketable anywhere in the country.
FINANCIAL SERVICE CENTER
Page 233

Financial Management, Group, LTD. will attempt to develop a
Financial Service Center similar to the Lancaster Office in the building being
syndicated. FMG has developed a Full Service Financial Center That provides all
of
the relative services necessary to manage the financial affairs of individuals,
businesses and institutions. The Center will include the following services:
l.
2.
3.
4.
5.
6.
7.
Financial Planning
Investment and Portfolio Management
Accounting and Tax Preparation
Real Estate Services
Legal Services
Insurance Services
Investment and Mortgage Banking
Financial Management Group, LTD will structure the Center similar

to that of the Lancaster location with the exception that Bennett Williams will
have a role in the formation and the operations of the Center. FMG will provide
the recruiting and management of the operation and will use the current
systems that have been developed and used in Lancaster. The ownership
will be structured among FMG, Bennett Williams, and the other Major
Players who wish to get involved. Enclosed is an original Business Plan that
outlines the concept in more detail.
***********************************************************
TI=\ABC 20/20 BROADCAST: "MADE IN THE USA?"
AT= AUDIO CONVERSATIONS: 02/05/07/09
SU= <HUGH DOWNS>: In Gulf war militar briefings, allied commanders
love to showcase the performance of sophisticated U.S. weaponry.
Everything from smart bombs to Patriot missles have bolstered
the allies' performance, but 20/20 has learned that federal
investigators are inquiring now whether Iraq itself may have
of a U. S.-style technology. It's feared thatt cluster bombs of a
type originally designed and produced in this country, may be used
against American forces. Tonight, in a 20/20 investigation, Lynn Sherr
asked wheter and how Saddam Hussein got his hands on technology
"Made in the USA."
<LYNN SHERR, ABC News>: These aircraft are delivering some of
the deadliest conventional weapons e ver built. They are called
"cluster bombs" and the earliest version was used by the American
military in Vietnam. They are so vicious that when Israil used them
against civilians in Lebanon in 1982, it created a serious rift of
in relations with the United States. The bombs have been sold to
many countries considered friends of the United States, but now the
technology and the bombs themselves are also in the hands of Saddam
Page 234
Hussein.

ABC News defense consultant Anthony Cordesman.
<ANTHONY CORDESMAN, Defense Analyst>: By and large, they can be 10.,

sometimes 100 times more lethal in killing exposed targest than a
conventional, very large high-explosive weapon.
<SHERR>: This is the story of how this deadly weapon designed for the
U.S. military made its way from this country to Iraq and how Americna
soldiers may now face the devastation from thousands of cluster bombs
if a ground war breakes out in the Persion Gulf. Federal officials
believe Saddam Hussein got his aresenal through a lethal combination-bureaucratic foul-ups in the U.S. government and simple greed.
Her's how th cluster bomnbs work. An artillery, an airplane or a
rocket-launchersend the bombs toward their targest. Each bomb carries
hundredsof smaller bomblets, something like hand grenades. Cluster bombs
be used against groundtroops or tanks and can even scatter mines to lie
dormant for days. The shrapnel can rip through the bodies of anyone or
anything in its way, causing massive casualties among destruction in
these buildings in Lebanon after a cluster bomb attack.
How did Iraq obtain the cluster bombs and the technology to make
their own? It was incredibly simple. Investigators believe it began
with International Signal & Control, a government contractor with
5,000 employess based in Pennsylvanial which designed key components of
clusters and built them throug a subsidiary in California. 20/20 has
learned federal investigators believe ISC provided the technology -- that
is the plans for the cluster bomb to this man, Carlos Cardoen, a Chilean
arms dealer. Authorities think he used the plans to build the cluster
bombs in Chile. Then he shipped them to Iraq.
What's wrong with all this? If the cluster bomb technology actually
left the county, that is illegal without U.S. government permission, which
investigators say ISC never got. It is also illegal for a foreigner like
Cardoen to take suh plnas out of the United States without a license,
which sources tell us he never obtained.
The man who opened the door to Iraq for Cardoens operation was this
man, Nasser Beydoun. Hee is a Lebanese-born middle man for Cardoen
who is based in the United States. Beydoun traveled frequently to Baghdad
and arranged for the sale of cluster bombs and other military hardware to
Saddam Hussein's army. In this first television interview, he told us
about the business of dealing in deadly weapons.
<NASSER BEYDOUN, Arms Dealer>: I can sell you a knive to peel an apple.
If you cut somebody's throat wiht it, it's your business. Weapons do
not kill. Who is behind it kill.
Page 235

<SHERR>: With slick promotional videos, Cardoen marketed his arms
throughout the world, but Arab countries were most favored.
<VIDEO ANNOUNCER>: Each one of the bomblets of the cluster bomb is
multi-purpose and has an incediary, anti-personnel and anti-armor
effect.
<SHERR>: This letter from Cardoen authorized Beydoun to sell cluster bombs
to Saddam Hussein during his war with Iran. It says Cardoen's company
is "willing to take its share in helping Iraq in this time of need. We
can provide you with our cluster bombs at the lowest possible price."
According to these contacts, the sale of cluster bombs to Iraq was an extremely
lucrative business. February 24., 1984-- 3,000 cluster boms sent to
Saddam Hussein's army, worth $21 million. A few months later, another
3,000 bombs, another $21 million. The supplies of cluster bombs
eventually totalled more than $400 million. In fact, Beydoun is suing
his former boss for commission payments.
Accoring to Beydoun, Cardoen not only sold the bombs produced in Chile to
Saddamm Hussein, he even set up a factory near Bagdad so the Iraqi
president couldmass-produce his own cluster bombs. That was one of the
first targets of the American military when the attack against Iraq
began, but it's unknown whether the plant is totally out of commission.
<MR. BEYDOUN>: He set up a factory for manufacturing of the cluster
bomb and later a stage for the fuses and this is a complete project.
I mean, it's complete form the raw material to the finished product
because the stragey of Iraq is to have control over the weaponry that
they have put in their strategy.
<SHERR>: Federal investigators are trying now to bring Carlos
Cardoen to trial, but why didn't they find out about him sooner?
He's been selling cluster bombs to Iraq for nearly a dedcade. The
U.S. Patent Office knew about Cardown back in 1986, but they
apparently didn't tell any9one else in the federal government about
him.
In a move that apparrently went unchedked at the tip levles of the
U.S. government, Cardoen applied for his own U.S. patent on cluster
bombs in 1986. Based on some changes over previous designs, he recieved
the patent two years later. Getting the patent is not illegal, but at a
time when U.S. shipments of amrs to Cardoen's home country of Chile were
banned, as were all sales to Iraq, why didn't the Patent Office raise any
questions abouth this foreigner dealing in Ul.S.-style arms? Experts
say bureaucratic infingting regularly causes such lapses. The
Department of Commerce, State and Defense are supposed to control arms
sales an communicate with one another.
Page 236

<MR. CORDESMAN>: Even today, the same squabling goes on every day
between Commerce, State, and Defense and at the same time, the
administration can never agree on what dinds of laws can be passed
to correct this.
<SHERR>: Carlos Cardeon declined a 20/20 request to speak on camera.
In an interview last year, he declined he had done anything wrong.
<CARLOS CARDOEN, Arms Dealer>: And as long as a human being is a person
that -- is an animal that needs to defendt himself, weapons are going
to exist. I think that that is wrong. As a human being, I believe
that weapons are wrong, but they are a fact and we have to live with
the facts.
<SHERR>: The former head of ISC, James Guerin, who dealt with the
Chilean, said he did not provide anything to Cardoen to build weapons,
but Nasser Beydoun tells another story.
<MR. BEYDOUN>: I beleive that Dr. Carlos Cardeon got the technology
of the cluster bomb from the Untied States.
<SHERR>: Questions about the cluster bombs come at a time when
attention is being focused on how many American-designed weapons
ended up in the hands of Saddam Hussein. Senator John McCain.
<SEN. JONN CcCAIN, (R) Arizona>: Ther's not just one Saddam Hussein on
this globe, there's lots and lots of them who, as we speak, are attempting
to acquire the technology to give them this capability of weapons of
mass destruction because its a way to gain victory on the cheap.
<SHERR>: McCain has introduced legislation that would severly penalize any
any companies or countries that sell weapons ilegally, or harbor amrs
dealers.
<SEN. McCAIN>: But to provide the kinds of weapons that we have to
many nations throuthout the world, which are clearly offensive in nature
clearly fare exceed their requirments to defend themselvezs, is frankly
unconscionable and must be brought to a stop.
<SHERR>: Basically, what you're saying is, "Hit them in the
pocketbook."
<SEN. McCAIN>: Hit them in the pocketbook and public exposure. No
Corporation or nation like to be branded a nation that is involved in
illicit traffic.
<SHERR>:
But Public pressure and economic santions will not sheild

Page 237

American soldierrs if Saddam Hussein uses the cluster bombs he already
has.
<SEN. McCAIN>: And if there is one good thing that may have come out
of this Persian Gulf was, it is to dramatically heignten the awarness
of the people of the world and the American people of how dangerous
this prol9iferation of weapons of mass destruction can be.
<DOWNS>: God, those things are vicious.
indictments yet, Lynn, on this?
Hhave there been
any
<SHERR>: No, Hugh, no indictments yet. Carlos Cardoen has not been
indicted, even though federal agents raided his headquarters office in
Miami and U.S. Customs agents took a number of documents, but-- no
indictments yet, but there are investigations that are goin on.
<DOWNS>: If these things are dropped from airplaines and we have air
supremecy, as has now been said by our leader, is there much to worry
about for our troops?
<SHERR>: We're told yes, because you don't need an airplane to drop a
cluster bomb. They can also be used on rocket-launchers and on unguided
missiles, bothe of which Iraq has. And incidentally, we talked about
that bomb factory. Even if it was badly damaged -- the cluster bomb
factory that he already has -- we're told that in three to six months
it can be operationa again and anyway, he likely has a big stockpile.
<DOWNS>: We, of course, have these weapons also, but I don't understand,
that's called by something different.
<SHERR>: Yeah. If you're listening to a Pentoagon briefing, don't
listen for the term "cluster bombs". They're calling them
"area denial weapons"
<DOWNS>:
Thank you, Lynn.
<WALTERS>: Well, next, preparing American pilots for air combat aver
Iraq. Stone Phillips went to a Nevada Air Force Base-- dress reherrsals for
actual battle conditions. [COMMERCIAL]
************************************************************
TI=\CD-AUDIO MASTER CUE SHEET AND SPECIFICATIONS
IM= SMPT1.CPR
PA= PAGES: 02
SU= SCRIPT MASTER TAPE CUE SHEET
DATE:
10/12/91
Page 238
TITLE:

1987 RECORDED AUDIO CONVERSATIONS "SELECTIVE CONVERSATIONS"
CD-ROM
TITLE
DATE
PERSONS
BEGIN
END
TRACK
TIME
____________________________________________________________________________________
__________________________________________
TRACK
1
0792
PA SEC I
09/29/87
TRACK 1
11 min
ISC ALLEGATIONS
Howard Eissler
0000
Bill Johnson
0-16-01
11-51-40
Robert Byers
Stan Caterbone
2
1230
Sandra Gray
TRACK 2
02/24/88
9.5 min
Sandra Gray
0793
Stan Caterbone
11-51-58
Chuck Smith
1236
Stan Caterbone
20-14-08
Dave Drubner
1470
Stan Caterbone
25-11-10
Avalon Police Dept.
1582
Stan Caterbone
27-43-32
Ted Gamillion
0435B
Stan Caterbone
52-26-15
20-14-00
3
1467
Lanc. Aviation
TRACK 3
07/10/87
5 min
25-11-06
4
1581
Dave Drubner
TRACK 4
07/07/87
2.5 min
27-43-26
5
Avalon Police
1960
08/27/87
23 min
52-56-03
6
0671B
Gamillion
TRACK 5
Studios, Inc.
07/21/87
4 min
56-57-00
Marcia Silen
7
End A
Family
07/26/87*
Stan Caterbone
Steve Caterbone
Phil Caterbone
Mike Caterbone
Tom Caterbone
Page 239
1967

Robertson
07/12/87
Scott Robertson
8
0434B
0000B
Stan Caterbone
9
0940B
Power
07/16/87
TRACK 6
5 min
Station Studios
Bob Walters
0672B
Stan Caterbone
56-57-10
Howard Eissler
0942B
Stan Caterbone
61-53-10
Detective Bodan
1093B
Stan Caterbone
64-50-10
61-01-10
10
1041B
PA SEC II
TRACK 7
10/28/87
3 min
64-48-10
11
1262B
PA ATTORNEY
TRACK 8
GENERAL OFFICE
10/28/87
4 min
68-18-10
12
NBC EXPOSE
01/21/91
11 min
"CORDEON ILLEGAL ARM SALES"
Tom Brokow
13
ABC 20/20
Barbara Walters
02/01/91
11 min
"MADE IN THE USA"
ISC FEATURE STORE
Lynn Sherr
Hugh Downs
TOTAL TIME OF AUDIO ON CD-ROM
38 MIN
IM= SMPT2.CPR
DI= PAGE 2
************************************************************
TI=\STAN J. CATERBONE INVESTMENT PORTFOLIO

IM=PORT2.CPR
PA= PAGES: 02
SU=
INVESTMENT PORTFOLIO
STAN J. CATERBONE
(AS OF JULY 1, 1987)
DATE
Page 240

ESTIMATED
ASSET
VALUE
PRESENT
OWNERSHIP
LOST
Michael and Stan J.
07/01/87
VALUE '91
2323 New Danville Pk.

$140,000
$212,630.00
Lancaster, PA 17547
Caterbone
433 West Marion Street

56,000 $ 85,052
Lancaster, PA 17603
07/01/87
50,000 Shares of
$500,000
$759,394
Financial Management
07/01/87
Mortgage Banking
N/A
Activities
07/01/87
"MUTANT MANIA"
$4,000,000
Digital Movie
07/01/87
$6,751,000
& Tony Bongiovi
Navaho "CHIEFTEN"
$121,000
$173,123
Airplane
07/01/87
554 Berkley Road

$350,000
$500,769
Stone Harbor, NJ 08742
09/03/87
______________________
___________
___________
_____________________
__________
TOTALS
$490,000
$5,317,000
$9,381,338
IM= PORT.CPR
DI= PAGE 02
************************************************************
TI=\STAN CATERBONE NOTES OF NEGOTIATIONS WITH AMERICAN HELIX & HIGH, INC.
DA= April, 1990 to February 1991
SU= Legend: David D. Dering - President, Board of Directors, American Helix
Page 241
N/A

Allon Lefever
- Chairman of the Board, American Helix
Executive Vice President, High Industries
Jim Tritch
<April, 1990:
- Board of Directors, American Helix

Executive Vice President, High Industries
American Helix Board of Directors>
Board of Directors vote to discontinue funding of the CD-ROM business

due to financial losses attributed to the LASERTEX joint venture
activities, and the business at large. Losses estimated at more than
$600,000, not including periphial business losses.
Board of Directors also ask for the resignation of Scott Robertson,
principal, and vice president responsible for the CD-ROM business and
the founder of the LASERTEX joint venture deal.
Decision to discontinue the current consulting contract of Stan Caterbone
as a result of discontinuing any capitalization of the CD-ROM business.
***********************
<July 8, 1990: Dave Dering with Stan Caterbone>
Dave requests my business outline of how American Helix and the
Advanced Media Group, Ltd., are going to share revenues and
structure business agreement.
***********************
<July 12, 1990: Allon Lefever with Stan Caterbone>
Allon stopped in to Helix to see me. Asked if this is my office.
Asked who's phone line I was using for long distance calls. Asked
me how many days I used the office.
I said that I was down in my
Washington, D.C. office for one or two days a week. He thought I
should be making more of a separation between the Advanced Media
Group, Ltd., and American Helix. He was worried about High's liability
and exposure of my CD-ROM business activites.
I showed him the
$2.5 million Department of Defense Proposal for CD-ROM manufacturing -He showed no response or words of encouragement.
**********************
<July 13, 1990: Dave Dering with Stan Caterbone>
Submit business structure to Dave Dering. No response for over a
week. I confronted him to confirm the structure, He said he saw no
real problems -- He thought the Mastering pass through should provide
Helix with revenue for verifying stamper. I told him it was up to him
to respond ---- Again no response.
Page 242

**********************
<July 24, 1990: Allon Lefever with Stan Caterbone>
Day of American Helix Board of Directors Meeting. Allon Lefever drops
of a lead from the cirriculum of Bloomsburg State College. Allon also
asks "Any CD-ROM business?"
**********************
<July 27th, 1990: Dave Dering with Stan Caterbone>
Defense Mapping Agency, Department of Defense, requests production
capacity for DMA700-900-0011 contract. Dave Dering states the
capacity to be 300 titles per month. I suggested that we make a more
conservative approach of 250 titles per month. Dave agree.
*********************
<August 10, 1990: Stan Caterbone with Allon Lefever>
Dave Dering was out of town. Allon stopped in to see me. Brought up
the issue of stationary. Allon wanted the Advanced Media Group, Ltd.,
on separate stationary. "That's why we gave you the business", said
Allon Lefever. I was instructed to use American Helix stationay for
replication business only. I agreed.
**********************
<August 14, 1990: Interoffice mail to Allon Lefever>
I forwarded a first draft of Advanced Media Group, Ltd., to Allon
Lefever via other materials by Sherri Diebler.
**********************
<August 16, 1990: Dave Dering with Stan Caterbone>
Dave Dering was upset that I forwarded a draft of the stationary for
the Advanced Media Group, Ltd., to Allon Lefever. Dave said
"Don't keep Allon in the loop. I am trying to get him out of the
information loop as much as possible."
**********************
<August 17, 1990: Stan Caterbone with Allon Lefever>
Allon stopped in my office to say that he liked the stationary.
**********************
<August 21, 1990: Stan Caterbone with Dave Dering>
Defense Mapping Agency submitts new production requirements of
Page 243

1,000 titles per year and 250 titles per month during peak times.
I asked Dave if we could accomodate the requirment. Dave said to
check with Disc Manufacturing, Inc.. (DMI). Wan Seegmiller of DMI
commites to requirments for mastering -- he said Huntsville, Alabama
facility would be tooled up for CD-ROM in September. DMI commits to
subcontract the mastering as per the production requirments.
I responded to the Defense Mapping Agency (DMA) with a commitment
for the production requirements.
**********************
I recieved notice from the DMA for a Best and Final Offer (BAFO). I
asked Dave Dering to meet with me to verify final pricing schedule.
Dave Dering said tommorrow with some relunctance.
**********************
Dave Dering reviews pricient schedule and told me that I could go
$ .04 lower on all replication line items. Dave asked me hou we are
going to structure business if we were awarded contract. I suggested
that this issue is an example of why we need to finalize a business
agreement between Amercian Helix and the Advanced Media Group, Ltd.,.
I suggested that the Advanced Media Group, Ltd., be responsible for the
front end of production (premastering & mastering) and American Helix
handle the backend (replication, printing, packaging, and shipping).
American Helix would contract with the Advnced Media Group, Ltd., for
the front end at the pricing schedules submitted. Advanced Media Group
would subcontract to DMI for mastering.
Dave Dering thought this was a good idea, and agreed. There were no other
negotiations between the Advanced Media Group and American Helix
concerning the $ 2.5 million DMA contract.
**********************
<September 12, 1990: Stan Caterbone with Dave Dering>
Dave Dering asked me to work out an agreement for Allon Lefever to
approve between Stan Caterbone and/or Advanced Media Group and American
Helix.
**********************
I submitt a draft of the agreement to Dave Dering.
**********************
Page 244

Dave Dering still will not resove contract and agreement issue.
continues to put off any resolutions.
Dave
<October 19, 1990: Stan Caterbone with Dave Dering>

I again plead with Dave Dering to at least compensate me for business to
date, until an agreement can be reaced. Dave Dering said that he would
submit an invoice to Allon Lefever and discuss payment.
**********************
I submit an invoice for $407.00 to Dave Dering.
**********************
I notify Dave Dering that if I do not recieve a check on Friday, that I
want a meeting with Allon Lefever on Monday. I refuse to continue to
work on all CD-ROM replication projects without being compensated. I
tell him "I'll walk if I don't get paid". He tells me that "there is
always the possibility that the check may not get through the system by
Friday"
I said "in over 18 months of recieving weekly checks as a professional
consultant, I never have experienced having a check request take two
weeks for processing".
**********************
FRIDAY - NO CHECK AS PROMISED. Dave Dering said that he was having a
meeting with Allon Lefever on Wednesday @ 3:30 pm.
**********************
<November 2, 1990: Stan Caterbone with Dave Dering>
Business Agreement between Stan J. Caterbone and American Helix is
finaly settled after 4 months of avoidence by American Helix, and
without any compensation paid to Stan J. Caterbone. In addition Stan
Caterbone had provided over 50 hours of service maintaining and
administering the computer networking system and othe periphial hardware
devices without any compensation then or in the future.
**********************
Page 245

<January 19, 1991: Stan Caterbone, Al Thornburg, with Dave Dering>
On Saturday morning, I went to the American Helix facility
to pick up some computer hardware. Upon attempting to unlock the side
door entrance with my 24 hour access security card, the door would not
unlock. Assuming something may have been wrong with the security system,
I drove to the residence of Al Thornburg, the engineer for American
Helix. I asked Al to drive over to see if his access card was
operable.
We entered the building with Al's access card and found that my access
card was inoperable throughout the building. Al then said that "Stan,
your locked out". I said, "I was in here until 5:00pm last evening and
my access card worked fine. I proceeded to pick up the tape back-up
and said "Let's go. I don't want to be arrested for burglary, like I
was 3 years ago. I don't know what the Hell is going on".
As we were leaving the computer room, Dave Dering appeared. This was
quite unusual, since myself and Al Thornburg often work on Saturdays,
and Dave Dering has not been in the plant on a Saturday for the past
few months. I said to Dave "Dave, why am I locked out?" He said
"talk to Jim Boyer". I, quite emphatically said, "why am I locked out?".
"Stan, you'll have to talk to Jim". I said "Dave, you are the president,
my contract is with you, not Jim Boyer". Dave said "Now, Stan, just calm
down. This isn't a conspiracy against Stan Caterbone." I told Al that
I'm getting out of here. This is too much like 3 years ago. I didn't
do anything, and I can't understand what is going on.
We left the building, and Al was especially suspicious of the events and
especially why suddenly Dave Dering showed up at the building on that
particular Saturday, only moments after we arrived at the building.
**********************
<January 21, 1991: Stan Caterbone Fax to David D. Dering>
Afraid of the "LOCKOUT" and the lack of any events or activities that
would explain such a drastic and damaging action of American Helix, I
faxed a letter to Dave Dering citing him in breach of our business
agreement and in conspiracy to eliminate or sabatoge my business and
my reputaion. The fax also contained a cc: to High executives, that
was never sent.
**********************
<January 22, 1991: Phone conversation;
Stan Caterbone and Dave Dering.
Dave Dering "Stan, how did you get in here last night?".
Stan "Dave, what are you talking about?, I won't go near that building,
Page 246

the last time I went back into my own building after being ilegally
locked out, I ened up in jail".
Dave Dering " How did you get in here and steal your fax?".
Stan "Dave, why would I want to steal the fax that I wrote?"
Dave Dering "You have caused a big problem. You put me in a difficult
position -- I don't know if I can rectify things with the 'High's' and
espicially Allon Lefever. I always went to bat for you -- how do I
trust you?".
A meeting was set up for 6:00pm later that day.
**********************
<January 22, 1991: Stan Caterbone with Dave Dering>
Dave gave three (3) reasons for the "LOCKOUT", although never willing
to engage in any real conversations relating to those issues:
1. The computer system went down, causing a problem in the security
system.
2. Jim Boyer did not reinstall my access identification number for
the security system.
3. Jim Boyer was to talk to you on Friday, the day before the
lockout, concerning eliminating your access to the facility.
Dave said "Jim Boyer said that he can take over the CD-ROM business
-- no problem".
Dave talked about trust and who to trust. Dave reluctantly agreed to
continue our relationship, however only on an arms legnth basis. I
was no longer allowed in the building except during normal business
hours. I was no longer to have a private office.
Dave Dering never addressed the issues or the circumstances that
preceeded the "LOCKOUT", and never addressed the reasons as to why
there was any reason to modify the agreement concerning my business
American Helix that was established back in June of 1990. There were
no disputes, activities, or conversations that gave any indication
that American Helix, Dave Dering, or Jim Boyer intended to change or
modify our relationship.
**********************
<January 24, 1991: Stan Caterbone with Allon Lefever>
Page 247

Stan Caterbone called a meeting Allon Lefever to discuss the following:
1. The R.R. Donnelly merger and acquisition of American Helix.
2. The "LOCKOUT".
Allon asked questions regarding my contact with R.R. Donnelly and Barry
Glick. I quickly made it clear that Barry Glick contacted me in
December after seeing my advertisement in the CD-ROM Enduser magazine,
pulblished by Linda Helgerson. Barry was elated to see someone in the
local area that was involved with CD-ROM technologies and asked to
visit with me. Allon asked many questions about Donnelly and Barry
Glick. I made it clear that during our visit, and from the discussions
regarding the strategic plan of Donnelly, I suggested that there may be
an opportunity for a merger or aquisition with American Helix. I also
discussed the capabilities for the facility to be a dedicated CD-ROM
manufacturing facility. I notified Allon that Barry was awaiting a
call from the next day concerning the appropriate contact to discuss
the subject of an acquisition. Allon assured me that the High's would
not contact Donnelly directly and would await a call from Barry Glick.
Regarding the "LOCKOUT" I gave the three reasons that Dave Dering had
provided during our meeting a few days before. I told Allon that after
"I had built a strong foundation for the CD-ROM business -- everybody
suddenly wants it back, six months ago, nobody wanted anything to do
with it, not to mention the capital that I had invested in it".
Allon Lefever was only concerned with why I had sent the Fax. "Why did
you send the Fax? I just don't understand why you sent the Fax". Allon
was not concerned with or wanted to discuss the issue of why I was
"LOCKED OUT".
Allon asked me the problems surrounding American Helix and what solutions
I thought could help restore the company to stability. I discussed the
lack of systems, the lack of a strong business foundation, and most
importantly the lack of management. He asked me about Dave Dering and
I responded "Dave Dering is an engineer, not a manager, he has no
real management skills".
Allon then asked me how to approach the meeting with Donnelly.
suggested that they just sit and listen to their ideas.
I asked Allon to assure me that this meeting would be kept confidential

between the two of us. He said that "I will have to tell Dave sooner
or later, and that he was not going to get in the middle of the two of
us".
**********************
Page 248

<February 15, 1991: Stan Caterbone with Jim Tritch & Allon Lefever>
Allon Lefever had requested a meeting to be certain that I was not
representing the High's or American Helix. I had told Allon that I
was not concerned with the merger issue, that the Advanced Media Group
was continuing discussions with Barry Glick on various information
technologies, that were strictly my business. I also infomred him that
Barry Glick had told me that "Stan, we are quite honestly more interested
in you rather than the facility or American Helix". I also informed
Allon that Barry asked if I would make a trip the Chicago, the
corporate headquarters to discuss the technologies and specifically
the manufacturing technologies of CD-ROM.
I made it perfectly clear that the two (2) contacts for a merger or
acquisition that I had provided to the High's were contacts that
approaced me. I also notified them that Dave Dering had requested
me to look for a joint venture partner as far back as November.
I also made it perfectly clear that I would not solicit any leads
unless I was to be compensated. Allon suggested that it may help me
to look for contacts, and I quite emphatically restated my contentions
that I would not do any work without compensation.
Jim Tritch aknowledged that I was the only person responsible for the
developement of the CD-ROM business, and the only person with any
real technical expertise in information technologies and CD-ROM, and
that neiter American Helix or High Industries had the capabilities
to manufacture CD-ROMs without me.
Jim Tritch also admitted that the Advanced Media Group, Ltd., would
have to be a purchased separately in the case of any merger or
acquisition of American Helix.
Jim Tritch also stated that in his initial meeting with Donnelly that
they like me and wanted to continue to work toward a business
relationship.
Both Allon and Jim stated that they would like to continue to work with
me in the CD-ROM business.
**********************
<February 15, 1991: American Helix Staff Meeting>
Through an employee that was present during the meeting, I had learned
that Dave Dering "spent 20 minutes "slimming" you and calling you a
RUNAWAY EX-CONVICT THAT WOULD END UP IN JAIL SOON". Dave Dering
also told the group that I had almost ruined the company, and I should
not be trusted.
Page 249

I was also informed the previous day that David Dering was telling
persons that the reason that I was out of town in December was because
"I was on the run from authorities".
**********************
TI=\ADVANCED MEDIA GROUP, Ltd., & R.R. DONNELLY STRATEGIC ALLIANCE
SU= SUMMARY:
DONNELLY GEOSYSTEMS AND ADVANCED MEDIA GROUP, Ltd.,
STRATEGIC ALLIANCE
PRELIMINARY DRAFT
STRATEGIC PLAN
DEVELOPED BY:
STAN J. CATERBONE
STRATEGIC PLAN
1. To pursue the development of information applications

utilizing the various digital technologies such as CDROM, Interactive Video Disc (IVD), Digital Video
Interactive (DVI), etc., for the non-traditional businesses
of Donnelly GeoSystems, and other R.R. Donnelly
divisions.
2. To compliment the already existing information and
telecommunications efforts of R.R. Donnelly by
integrating the development of the above information
applications for specific niche markets that would result
in value added products and services utilizing the
already existing information assets of R.R. Donnelly.
3. To specifically develop information applications from
end to end and to provide the additional support
necessary and required to take those respective
productions and services to the market at large.
4. To provide and implement the necessary marketing
research and strategies to effectively develop a new
business of consumer and retail related businesses
involving the respective information applications.
5. To research and develop new technologies for the
telecommunications businesses that would integrate the
Page 250

information applications for the electronic distribution
of such information applications, resulting in the
development of a new distribution network for already
existing information applications. These technologies
would focus on the "wireless" transmission of
information applications utilizing microwave
technologies.
6. To facilitate the development and implementation of
INTERACTIVE EDUCATIONAL APPLICATIONS for the
educational systems at large. To contribute to the
developing efforts of the "private sector" in improving
the quality of education through the utilization of the
preceding information technologies through new
strategic alliances of other active corporations such as
IBM, Lucasfilm, and Xerox.
There are currently developing consortiums of
individuals and corporations that realize the sense of
social responsibility resulting in the contribution of
available resources for specific purpose of improving
the quality of our Educational Systems at large. There
is enough evidence that this objective is far too
aggressive for the current level of financing and funding
that has been allocated under the Bush Administration.
It has been suggested that some of the larger private
corporations contain not only the capital and
technological resources to facilitate this effort, but more
importantly the necessary human and management
resources to implement this mission with a real sense
of accountability and responsibility.
7. To specifically develop value added businesses and
profit centers from a variety of products and services
built on the foundation of the portfolio of mapping
information assets currently owned by Donnelly
GeoSystems.
8. To support and administer the manufacturing of CDROM applications through the acquisition or the
strategic alliance of a CD manufacturing facility.
PLAN OF ACTION
1. To select a prototype interactive application that would
compliment the recent efforts and development of the
Page 251

"Plan A Trip" mapping system.
2. To design an interactive information application from
end to end including hardware, software,
documentation, and marketing strategies to deliver it to
the market at large.
3. To develop the information application with utilizing
either a sampling of information, or the entire
information asset.
4. To conduct market research and indications of interest
for the respective prototype.
5. To evaluate the feasibility and the interest of both R.R.
Donnelly GeoSystems and the Advanced Media Group,
Ltd., for continuing the a relationship for the purpose of
pursuing the strategic plan.
*****************************************************************
TI=\ADVANCED MEDIA GROUP, Ltd., CAPABILITIES AND CLIENT LISTING
IM= AMG.CPR
PA= PAGES: 11
SU= SUMMARY: The corresponding images will illustrate the
global efforts of the Advanced Media Group, Ltd., including:
HONG KONG; UNITED KINGDOM; CANADA; SOUTH AMERICAN; BRAZIL;
AUSTRALIA; AUSTIA; SPAIN; GREECE; and SOUTH AFRICA.
The following is the "Capabilities Statement" used in
the marketing efforts of Stan Caterbone's Advanced Media Group, Ltd.,
Stan Caterbone developed the business in "Digital and Information
Technologies" after American Helix and High Industries elected to
discontinue the business after investing alomost $ 1 million and
not being able to develop any real business.
Stan Caterbone was the only person responsible and the only person
with any real technical expertise in CD-ROM technology. In six
months Stan Caterbone surpassed the amount of revenues that American
Helix produced in 18 months. Stan Caterbone also completed one
of the most technical projects for the National Institute of Standards
and Technology (NIST). Phillips DuPont and Stan Caterbone were the only
firms to compete on the project because of its level of difficulty and
its required expertise.
Stan Caterbone was able to cuase a fierce
Page 252
competition for the $2.5
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=
IM=
DI=

million Department of Defense contract (DMA007-900-0011). Ironically
the two other competitors were the very same companies that had
been responsible for the development of CD-ROM, SONY (DADC) and
Phillips DuPont (PDO). Incidently, the procurment is currently under
investigation for possible misconduct after several greivenced filed
by Stan Caterbone.
AMG1.CPR
PAGE 2
AMG2.CPR
PAGE 3
AMG3.CPR
PAGE 4
AMG4.CPR
PAGE 5
AMG5.CPR
PAGE 6
AMG6.CPR
PAGE 7
AMG7.CPR
PAGE 8
AMG8.CPR
PAGE 9
AMG9.CPR
PAGE 10
AMG10.CPR
PAGE 11
CAPABILITIES:
AMERICAN HELIX TECHNOLOGY CORPORATION
BACKGROUND
AmericanHelix was funded by High Industries, Inc., of

Lancaster, PA, in 1987. As a wholly owned subsidiary of the High
companies, AmericanHelix is joined by more than 40 companies
managed and operated by the $250 million a year conglomerate. High
Industries, Inc., currently serves the steel, precast/prestressed concrete,
and commercial/industrial construction industries; as well as operating
in industrial, commercial, and residential real estate, cable TV, food
services, management consulting and development, hospitality services,
communications and other related services.
AmericanHelix is situated in the 500 acre Greenfield Corporate
Center, graced with aesthetically pleasing architecture, beautiful
landscaping, broad walkways, fountains, and ponds. AmericanHelix
Page 253

contrasts the contemporary rural setting with its illuminating high-tech
facility. The Advanced Media Group, LTD., which provides
information technologies, also operates an office in downtown
Washington, D. C., close to the government agencies.
AMERICAN HELIX SERVICES

AmericanHelix employees over 40 workers in its headquarters
and manufacturing facility. In the first quarter of 1990, the company
completed its first expansion, which doubled the output capacity of the
plant. AmericanHelix has the ability to produce more than 3.6 million
CD'S per year.
AmericanHelix provides services for the CD technology
industries. The state-of-the-art CD manufacturing facility was
completed in December of 1988. The facility features a unique 3rd
generation monoline processing module, designed and engineered by
David D. Dering, founder and president. This extremely automated
facility was designed and engineered with the objective of increasing
manufacturing yields through increased performances from its quality
techniques and processes. The facility manufactures both CD-AUDIO
AND CD-ROM discs.
MANUFACTURING
The CD manufacturing facility features a 10,000 class clean room for
its replication operations. AmericanHelix features an aggressive
approach to its quality assurance processes. During the manufacturing
processes, the master stamper is inspected during three different quality
control tests, before being installed into the injection molding machine.
The stamper is visually inspected for surface flaws, and analyzed for
both physical and data specifications. Adhering to the
PHILLIPS/SONY Redbook and Yellowbook standards, is essential.
Upon the completion of the replication procedures, 100% of the
discs are analyzed by the AID Analyzer for more than 10 different
physical flaws. In addition the CD is inspected in the CD-CATS, the
industry standard quality assurance device recognized by government
agencies, for physical and data imperfections specifically designed for
the CD-ROM industry.
100% of the discs are inspected again upon completion of the
printing procedure and before being packaged. AmericanHelix
considers it to be a leader in quality assurance.
INFORMATION TECHNOLOGIES
Page 254

Under the direction and ownership of Stan J. Caterbone, The
Advanced Media Group, LTD., services the information technology
market, and features end to end CD-ROM (WORM, DVI, CDTV,
LASERDISC) production capabilities. The Advanced Media Group,
LTD., firmly believes that the ability to provide efficient coordination
and management to optical publishing projects is critical to it's success.
Because of the extremely complex process of optical publishing, and the
need for many disciplines during its production, the project manager
must not only develop and produce an effective application, but he must
also bring the project in within the prescribed budget.
By providing clients with the capabilities for end to end
production, along with assuming the responsibility for the entire process,
AmericanHelix delivers a cohesive, synchronized, and organized
approach to developing information technology applications. The
Advanced Media Group, LTD., has made a firm commitment to its
development of various information technologies, without the
dependency for any one type of medium.
The Advanced Media Group, LTD., provides Application Design
Services; Data Conversions, Scanning and Keying; Data Preparation and
Indexing; Software Configuration and Development; Application
Simulation; Prototype and Storyboard Applications; Premastering,
Mastering, and Replication; Exhibit Technologies; and Point of Sale
Kiosks (POS).
Of course the Advanced Media Group, LTD., does not ignore
the market for individual services. The menu of services can be selected
to compliment the available efforts of any organization. Clients can
select only services that it elects not to perform in-house. Understanding
that there are several organizations with qualified and extremely
innovative technology capabilities,
the Advanced Media Group, LTD.,
would like to compliment those organizations
The Advanced Media Group has recently completed one of the

most aggressive CD-ROM projects for the National Institute of
Standards and Technologies (NIST), of Bethesda, Maryland, a
government sanctioned technologies incubator for U.S. technologies at
large. The project included over 25,000 UNIX Tar files and a CD-ROM
of over 675 megabytes. Stan Caterbone and John Garafolo, Computer
Scientist for NIST, have written an article containing valuable
information that is useful when publishing UNIX applications on CDROM. The article will appear in the January issue of DISC Magazine,
published by Helgerson Associates.
Page 255

CLIENT LIST
National Institute of
Standards & Technology (NIST)
Groller Electronic Publishing
E. Giovanetti
Dialcom
Vaghi Periodicles
Clahritas
Advanced Systems Development
Compaq Computers
Applied Optical Media Corp.
Commodore Business Machines
DRI/McGraw Hill
Meridian Data
Pennsylvania Blue Shield
INFO ONE International
University of Montana
National Technical Info Svc
Rochester Institute of Technology
NEC
Amp, Incorporated
Parkway School District
Hitachi Systems Division
Department of Commerce
Mathew Bender Co., Inc.
Nortek Computers, Ltd.,
University Microfilm International
Bell Atlantic
Aspen Systems Corporation
Microsoft CorporationRon Giordano
Arther AndersonAtlantic Beach Realty
PC Solutions Plus(609) 368-7023
Capitol RecordsMovie Real Estate
Digital Audio Disc Corporation (SONY)
Ingram Customer Systems
University of Hawaii at Manoa
National Bibliographic Service
International Business Machines (IBM)
Veterans Administration
************************************************************
TI=\PROFESSIONAL ASSOCIATES AND CLIENTS OF STAN CATERBONE
RELATING TO FINANCIAL MANAGEMENT GROUP, Ltd.,
Page 256

Dave Cook
Turkey Hill Minit Markets
Centerville Road
Lancaster, PA 17603
(717) 299-8908
Movie, Bennet Williams
John Berg Associates
Philadelphia, PA
(215) 636-1900
Financing
Barry Newhardt
Progress ...
Lancaster, PA
Financing, Real Estate
Andy Glosser
Lanecor Associates
Lancaster, PA
Financing, Equity
Marylin Berger
Daniel Berger
Berger Real Estate
E. New Street
Lancaster, PA
Financing, Real Estate
Jim Bly
Source Capital
6725 Curran Street
McLean, VA
22102
Financing, Movie, Airplane
Rental $250/HR
Norris Boyd
Boyd Wilson
Olde Hickory
Lancaster, PA 17601
(717) 569-0484
Financing, Movie
Fidelity Mortgage
Michael Long
Philadelphia, PA
(215) 424-3100
Financing
Page 257

Bill Tell
PDQ Industies, Inc.,
Brownstown, PA
(717) 656-4281
(717) 656-6892 FAX
0118163030550 (Japan Fax) R-DAT
Financing, Movie,
Vic
Romar Aviation
Lancaster Airport
Lancaster, PA
17601
(717) 569-8296
Pilot, "involved in
reposesstion"
Tony Pascatti
Underwriters Advisory
3605 N. Progress Ave.
Harrisburg, PA 17110-9697
(717) 652-6686
Movie, Financing, FMG
Insurance contracts
Al Dannat
Institutional Investors
777 North Eldridge
Parkway, Suite 730
Houston, TX 77079
(713) 497-8010
Morgage Banker
Dave Schaad
Bennet Williams Realty
York, PA
(717)
Real Estate Partnerships,
Birtcher Real Estate
Bob Spicer
Philadelphia, PA
(215) 503-8537
Financing, Equity
Madelin Wooten
John Keeble, President
Financial Service Corp.
Page 258

Atlanta, GA
Bill O"Hara
554 Berkley Road
Stone Harbor, NJ
(609) 884-7199
Landlord,
Jack Mann
Shelter Haven Rlty
Stone Harbor, NJ
Real Estate, Finanancing
Reg Pattey
Burle Industries
New Holland Ave.
Lancaster, PA
Finanancing for Burle
Ned Grove
Lancaster, PA
Finanancing
Jerry Miller
GEM Development
Lancaster, PA
Finanancing, Equity
Tom Kyle
High Associates
High Industries
Lancaster, PA
17601
Financing, Partnerships,
Movie
James Christian
United Chem Con
Lancaster, PA
Financing, Movie,
Jules Goldfarb
G/N Associates
2316 Dairy Road
Lancaster PA
17601
David M. McClatchy
MaClatchy
630 West Chestnut Street
Page 259
Lancaster
PA

17601
Ed Vinson
10749 Falls Road
Suite 202
Lutherville MD
21093
Len Shendell
Columbia Asset Management
Twining Office Center
715 Twining Road
Dresher PA
19025
Jeff Springer
Diversified Investment Asso.
16 South Calvert Street
Suite 400
Baltimore MD
21202
Sal Belluardo
John G Berg Asso.
1 Logan Square
Suite 1105
Philadelphia PA
19107
Jeff King
National Properties Inc.
150 East Swedesford Road
Wayne PA
19087
Bob Fields
Manor Group
1377-C Spencer Avenue
Lancaster PA
17603
Mr.Rosenblatt
Max Gomburg
Gomburg Associates
995 Greentree Road
Pittsburgh PA
15220
Joel & Mimi Baron
Baron
601 East Chestnut Street
Lancaster PA
17602
RELATING TO THE ACTIVITIES OF THE DIGITAL FILM ("MUTANT MANIA")
Page 260

Gene Clair
Clair Bros Studios
Lititz, PA
Sound Production
Barbara Peters
Arlene Davidson
Marcia Silen
Flatbush Films
4334 Stern Ave.
Sherman Oaks, CA 91423
(818) 995-3417
Movie Producers
Rhema
Video Service
Philadelphia, PA
(215) 738-3751
Movie Production
Tony Bongiovi
Bob Walters
Ellen Lipman
Power Station Studios
New York, NY
Movie Partners
Ted Gammilion
Mary Gamillion
Gamillion Studios
1137 N. McCadden Pl.
Hollywood, CA
90038
Mike Wolfe
Commonwealth Bank
(717) 780-3092
Loan Officer, Airplane
Mr. Cohouet
Mellon Bank
(412) 234-5000
Discussed Law Suit
regarding reposssession
ATTORNEYS AT LAW
Joseph Roda, PC
Page 261

301 Cipher Building
36 E. King Street
Lancaster, PA
17602
(717) 397-3791
Robert D. Beyer
Arnold, Beyer, Homsher
110 E. King Street
Lancaster, PA
17602
(717) 394-7204
Lewis J. Schweller
Valore, McAllister,
Westmorland, Gould,
Vesper & Schwartz
Mainland Professional
535 Tilton Road
Northfield, NJ
08255
(609) 645-1111
Rick Fox, Attorney
Underwriters Group
Progr ess Ave
Harisburg, PA
Jeff Jamounou
McNesse, Wallice & Nurick
Front Street
Harrisburg, PA
Barry Cappello
Diane Cambell
Coppello & Foley
831 State Street
Santa Barbara, CA
(805) 564-2444
Mike McDonald
Lancaster, PA
93101
17604
Joel Goldhammer
Sidel, Gonda, Goldhammer & Abbot
Philadelphia, PA
(215) 568-8383
Kerry Steigerwalt, ESQ.
5450 Kirkwood Dr. K-3
San Diego, CA 94521
Page 262

Sandy Gray
c/o Kerry Steigerwalt
San Diego, CA
AUTHORITIES
Intercon Special Svc.
Frank Garrity
60 E. 42nd Street
Suite 1045
New York, NY
(212) 370-4430
Gib Armstrong
(717) 786-862
Cris Mele
Attorney General Office
(717) 782-4482
Corporate Acconting Office
P.O. Box Drawer 671
Dunkirk, NY
14048
11/25/87 Return
972386104
85 B48 10
Lancaster Chamber of Commerce
Dave Wouols
Lancaster, PA
State Police
Lincoln Hwy East
Lancaster, PA
Lancaster Police
N. Queen Street
Lancaster, PA
Governer Robert Casey
Harisburg, PA
Federal Bureau of
Investition, (FBI)
Fred Martin
(717) 232-8686
Pennsylvania Attorney General's Office
Page 263

Detective Boden
Admitted Partners had a
Power of Attorney, talked
to him in July
PERSONAL REFERENCES (Witness to Activities of '87)

Linda Davis Vega
Orlando, Fl
Tuesday Barnette
431 S. Plum Street
Mount Joy, PA
(717) 653-4570
Rob Clark
West Palm Beach, FL
Maggy Brodesser
Cape May, NJ
(609) 886-6035
(609) 886-2782
Mike Orstein
York College
York, PA
(717) 560-0627
Tammy
Cape May, NJ
(609) 884-3425
Rudolph Valentino
(717) 299-1473
Ric Obrect
Calico Cat
Stone Harbor, NJ
(717) 394-8320
Bill Johnson
Lancaster, PA
(717) 285-3685
Michelle Hodge
Middletown, DE
(302) 378-4762
Page 264

(609) 465-7924
CLIENTS OF STAN CATERBONE FOR FINANCIAL ADVISORY SERVICES

Dr. William Umiker
1350 Hillcrest Road
Lancaster, PA
17603
(717) 394-9936
Millard Johnson
Duff Ave.
Lancaster, PA
717) 285-3685
Richard Elson
East Petersburg, PA
Dickie Coho
Lancaster, PA
RELATING TO THE ACTIVITIES OF DIGITAL TECHNOLOGIES
David D. Dering
James Boyer
American Helix
Lancaster, PA 17601
(717) 392-7840
Allon Lefever
Jim Tritcsh
High Industries, Inc.
William Penn Way
Lancaster, PA
17601
Linda Helgerson
Helgerson Associates
Publishers
510 N. Washington St.
Falls Church, VA 22046
(703) 237-0682
Steve Swan
Data Development
42 Flagler Ave
Stuart, FL 34995
(407) 288-7226
Page 265

Gil Bowen
Data Development
19th & L Street, N.W.
Washington, DC
(202) 785-8822
Slavek R. Rotkiewicz
American Bankers Bond
New York, NY 10004
(212) 943-4202
Tom Vreeland
Amy Kovarick
Ann Richards
NETWORK TECHNOLOGIES
Springfield, VA
(703) 866-9000
Marshall Mathews
Terry Harple
Ferranti International
Lancaster, PA
(717) 285-7151
Charles Bauer, Sr.
Skip Strovel
B&B Information & Image
8325 Marlboro Pike
Upper Marlboro, MD
(301) 735-3690
Lucy Griffen
Joan Gervino
American Bankers
Association
1120 Conneticut Ave. N.W
Washington, DC 20036
(202) 663-5491
Dr. William Sailer
Trinity Church
205 N. Railroad St.
Myerstown, PA 17607
(717) 866-5775
Mike Kawahara
Commodore Computers
Page 266

1200 Wilson Drive
West Chester, PA 19380
(215) 431-9452
Mike Grubbs
Tandy Electronics
Houston, TX 76102
(817) 390-3693
Lloyd E. Lewis
Library of Congress
Washington, DC
20541
(202) 707-1308
Dave Benfer
EXXON Production Research
3120 Buffalo Speedway
Houston, TX
77252-2189
Ed Bauergard
Amp, Inc.
2909 Fulling Mill Rd
Middletown, PA
(717) 986-7455
Harry Needleman
Labott Anderson
NASA Library
Washington, DC
Thomas Thiel
Scott
Kathey McKosky
Arlington, VA
Ken Rudolph
American Helix
Lancaster, PA
Kenneth Clark
Bell Atlantic
Democracy Blvd
Bethesda, MD 20817
(301) 493-3541
Carmen J. Martin
Ford New Holland
Page 267

500 Diller Ave
New Holland, PA
(717) 355-1638
17557
Wayne Landis
PC Solutions
159 Windy Hill Road
Duncannon, PA 17020
(717) 834-9227
Jan L. Kloiber
Arthur Anderson
69 West Washington St.
Chicago, IL 60602
(312) 507-2548
Bruce Kline
Mike Hess
Miracle Concepts
Lancaster, PA
(717) 299-7382
Leroy J. Tuscher, Ph.D.
Lehigh University
111 Research Drive
Mountain Campus
Bethleham, PA
18015
(215) 758-3231
Earl H. Horton, Ed.D.
Superintendant
Hempfield School District
Landisville, PA 17538
(717) 898-5560
Cogressman Robert Walker
House of Representatives
Washington, D.C. 20515
Dave Gribbin
Assistant Secretary of Defense
OSD # 19043
William M. Nelson
Contracting Officer
Page 268

3200 S. Second St.
St. Lois, MO 63118
(314) 263-8502
Stanley O. Smith
Brigadier General,
US AIR FORCE, CHIEF OF STAFF
Fairfax, VA
22031
John Garofolo, C.S.
Dr. David Pallet, Ph.D
Sandy Ressler
NIST (NATIONAL INSTITUTE OF STANDARDS & TECHNOLOGY)
Gaithersburg, MD
(301) 975-3193
Alan Hamerslee
Gisele Vencel
Leon Whidbee
Ash Pawha
Wan Segemiller
Disc Manufacturiing, Inc
1120 Cosby Way
Anahiem, CA
(714) 630-6700
Lance Buder
Sylvester Pufek
Optical Media Int'l
Los Alamos, CA
Bill Tufte
Standard Technology, Inc.,
6116 Executive Blvd
Rockville, MD 20852
(301) 770-2800
Pat Tomes
Paul A. Will
National Association of Clock Collectors
514 Poplar Street
Columbia, PA 17512
(717) 684-8261
Michael Morgatta
Technomic Publishing
Page 269

851 New Holland Ave.
Lancaster, PA
(717) 291-5609
Dr. Barry Glick
RR Donelly & Sons
Cardiographic Division
53 West James Street
Lancaster, PA
17603
(717) 393-8806
Susan Shiner
ISC EDUCATIONAL SYSTEMS, INC.
FERRANTI INTERNATIONAL SIGNAL, INC.
3700 Electronics Way
Lancaster, PA
17604-3040
(717) 898-0890
************************************************************
TI=\NEWS REPORTS
SU= THE FOLLOWING NEWS REPORTS ARE ACCOUNTS OF THE
ACTIVITIES OF JAMES GUERIN AND INTERNATIONAL
SIGNAL & CONTROL (ISC) AND OTHER KEY PERSONS
INVOLVED WITH THE ISC SCANDEL.
IM= 1.CPR
DI= DATE DI= PAGE 1
January 5, 1990
"THE FERRANTI FRAUD"
IM= 2.CPR
DI= PAGE 2
"THE FERRANTI FRAUD", continued
IM= 3.CPR
DI= PAGE 3
"THE FERRANTI FRAUD", LARRY RESCH, continued
IM= 4.CPR
DI= PAGE 4
"THE FERRANTI FRAUD", continued"
IM= 5.CPR
DI= DATE DI= PAGE 5
January 24, 1990

"GUERIN: CLARK SAID HE COULD PUT ME IN PRISON FOR 50 YEARS"
IM= 6.CPR
DI= DATE DI= PAGE 6
January 24, 1990

"ILLEGAL CONTIBTIONS TO HAIG ALLEGED"
Page 270
IM= 7.CPR
DI= DATE DI= PAGE 7
January 24, 1990

"HAIG DONATIONS", "FERRANTI SUES", "KEITH MARTIN"
IM= 8.CPR
DI= PAGE 8
"HAIG DONATIONS", continued
IM= 327.CPR
DI= DATE - May 15, 1990
DI= PAGE 9 "U.S. AGENT CHARGES GUERIN DIRECTED WORLDWIDE FRAUD"
IM= 10.CPR
DI= DATE - May 16, 1990
DI= PAGE 10 "JACOBSON GETS JAIL FOR ROLE IN BRIBE SCAM"
IM= 11.CPR
DI= DATE - May 16, 1990
DI= PAGE 11 "FBI TIES GUERIN TO ILLEGAL MILITARY SALES"
IM= 13.CPR
DI= DATE - May 16, 1990
DI= PAGE 13 "CHRISTIAN ANGERED BY JACOBSON'S SENTENCE"
IM= 14.CPR
DI= DATE - May 17, 1990
DI= PAGE 14 "COURT TOLD ATTORNEY CLARK TRIED TO STOP ISC 'CROOKS'"
IM= 15.CPR
DI= PAGE 15 "CLARK, GUERIN", continued
IM= 16.CPR
DI= DATE - May 18, 1990
DI= PAGE 16 "GUILT IS ADMITTED BY GUERIN COMPANY", PARENT INDUSTTIES, INC.,
IM= 17.CPR
DI= DATE - June 18, 1990
DI= PAGE 17 "JUDGE TELLS GUERIN TO PAY $189 MILLION"
IM= 18.CPR
DI= PAGE 18 "GUERN LOSES CASE", continued
Page 271
IM= 19.CPR
DI= DATE - May 18, 1990
DI= PAGE 19 "GUERIN COMPANY GUILTY"
IM= 20.CPR
DI= DATE - January 14, 1991
DI= PAGE 20 "PROBERS FINDING ISC'S S. AFRICAN TIES WERE CLOSE", ED SYSTEMS
IM= 21.CPR
DI= PAGE 21 "ISC:CLOSE TIES TO SOUTH AFRICA PROBED", continued
IM= 22.CPR
DI= DATE - February 7, 1991
DI= PAGE 22 "GUERIN vs. CLARK 'BLACKMAIL' TAPES REVEALED"
IM= 23.CPR
DI= PAGE 23 "'BLACKMAIL'", continued
IM= 24.CPR
DI= DATE - Febryary 9, 1991
DI= PAGE 24 "LACASTER AVIATION FILES FOR BANKRUPTCY"
IM= 25.CPR
DI= PAGE 25 "GUERIN BREAKS SILENCE OVER '20/20' REPORTING"
IM= 27.CPR
DI= PAGE 27 "STORY: DEALS BY ISC SENT IRAQ BOMBS, BUT GUERIN DENIES SALES"
IM= 29.CPR
DI= PAGE 28 "JUDGE DELAYS HEARING IN GUERIN-CLARK DISPUTE OVER CASH"
IM= STOCK.CPR
DI= PAGE 29 "MANAGER ACQUITTED OF LYING IN SALE OF FERRANTI STOCK"
************************************************************
Page 272

TI=\IMPLICATED PERSONS EXEMPLIFYING MISCONDUCT AND IMPROPRIETIES
SU= IMPLICATED PERSONS AND OR ENTITIES
COMMONWEALTH BANK,
MIKE WOLF
LANCASTER AVIATION, CHUCH SMITH, PETE WHOLFSON

ROBERT KAUFFMAN, FINANCIAL MANAGEMENT GROUP, Ltd.,
MICHAEL HARTLETT, FINANCIAL MANAGEMENT GROUP, Ltd.,
ROBERT LONG, FINANCIAL MANAGEMENT GROUP, Ltd.,
PETER PENEROS, FINANCIAL MANAGEMENT GROUP, Ltd.,
P. ALAN LOSS, FINANCIAL MANAGEMENT GROUP, Ltd.,
DETECTIVE LARRY MATHIAS, MANHEIM TOWNSHIP POLICE DEPARTMENT
DETECTIVE LARRY SIGLER, MANHEIM TOWNSHIP POLICE DEPARTMENT
MURRAY HORTON, DISTRICT JUSTICE (MANHEIM TOWNSHIP)
RICHARD REESER, DISTRICT JUSTICE, (NEW HOLLAND)
ARRESTING OFFICERS (MANHEIM TOWNSHIP POLICE DEPARTMENT)
CRAIG RUSSEL, ATTY, RUSSSEL, CRAFT, GRUBER, & HUBER
LANCASTER NEWSPAPERS
STATE SENATOR GIB ARMSTRONG
JOSEPH RODA, ATTORNEY
MANHEIM TOWNSHIP POLICE DEPARTMENT
AVOLON POLICE DEPARTMENT, NEW JERSEY
STONE HARBOR POLICE DEPARTMENT, STONE HARBOR
FULTON BANK
PETER RICHTER, FARMERS FIRST BANK,
*******************************************
Page 273

"THE ENERGIES AND EFFORTS OF THIS PROJECT ARE DEDICATED
TO MY BELOVED BROTHER --- SAMMY, GOD REST HIS SOUL"
laid to rest on december 25, 1985
Page 274
STATEMENT IN ACCOUNT WITH
DOMINICK INVESTOR SERVICES
CTSY IYDIVIbUlrLS SECUPITIES LTI

@'NORTH QUEFN S T
bbnc4sTER
P A 175i
CORPORATION
W BROADSmEET.NM YOllU. N.Y. 1

II2.W.IDO
CUSTOMER ACCOUNT NO.
ACCOUNT EXECUTIVE
280 1QeOO3 452
I'A6E
1'OF
ARMSTRONG SLICK
STATEMENT PaRIoD
STIWLEY K CATERBONE
4331WEST' 14RION ST:
LANCAS T FR
DATE
OEGINNING
PA
17603
SOLDDEUVSREO
ORWORT
'WWHT.RICEIVEO
on LW(I
12-01-83
*mOlWTEIIEm
ENDING
Tw4aR.
DtSCRIPTION
m a OR e m v
.ML
IMEREST :REBITE0 "0 YOUR Al:COUNT. I N 1 9 8 3 , WAS- r k i i i b l
64.75C
AMOUNT CHARGED
AMOUNT CREOITEI
THE' YTb C l E O I T IWT REST TOT, LS SHOVW OW. TNfSJ ST4RHENT U :LL' BE REPORT EO TO THE I R S
AND ANY ACPROpRIAT STBTE T hX' AUfAORITY'fll' LZFU' JF' FEDER bL: IWFORWATtON RETURN 1099
1
ALL1 PROCEEDS- OF' SA ES TRlNS KTIONS U f t L ' M l R E W I I E O TO T:WE IRS FOR THE PERXOD 8E61NWtN6
7-139. THtIJ' 12-31-13 I N LPEI'OF F E O E R A L ~ M W R R A T ~ ~ ~ ~1 0
~ 9F9O
8~~~
* *
12-3 0-83
utxvxr
FOR THIS
PER~OD
**
rnr
tLUV5t
'ROll 1 1 / 3 0 TO 1 2 / 2 9
:.2129BAL
SWiBlCR
(LVS 8ALi
SBbi6lCR
*
1000
**
POSITIONS
:WTERYlTfOWAL SISNAL
i CONTROL GROUP PLC
I;EIJSQR~~ATTC'COA LTQ
400
I R t PRICE
PORTFOLIO V4tUES
1
WCF
*.
4.019
16ot.60
r
I
EE REVERSE SIDE FOR IMPORTANT INFORMATION
***
High Assaiates LTD.

1861 W i l l i a m Perm Way
Lamaster, PA 17601
Attn: Paul Lewis
Deat Mr. Lewis:
i
k
i
%
I have beenrefarred to ynu fran EdwaxdGordcnof the HorstC;rollp. I am

ccnsiderirq making a career change into the real estate devalopnent i d u s t r y
an3 I warld U k a to have yaur -t
amsmtims. I have almys
ctmsiderd the real estate inQstry exciting an3 chllengirrg, especially
after beomdng mpe faniliar with it through limited ips MB tax
shelters.Wofthereasa~~farthecareer-inUghtofaverygmd
home, is the lack of enthudam and hspiraion that I gat frun vatching
tax retmm an3 financial s t a w t s cbange withait s6eitig any material
evi.dm=eof pmgmss, md-t as a newly developed tact of land, or a
rehabilitated darntom building or mall. I do not fear or krdc any
~ t a d b q o f t h e a n a l y t i c a l a s p e c t s o f b u s i n w s , ~ t h e y t e n a tbe
o
mare stjnulating and meanirrgN ipn applied to material prochjcts ar
me.
L!
t
.
d
I have several
that warld enable me to slake a very fast and easy
trahsitiar into the industry. I tau3 good aoanuniaticn akilb and I an
very cnafcctable dealing w i t h at-,
acmmtmb, bankers, private
husinees arnere, etc.. I have sane experieme in qrdicaticne and capital
f~ticnfmmr#aeoftheworkthatIhwedDneinthespontsindustry. I
haveagreatdealofknowle&geandexperienceinuorkingwithtaxlareand
regulations c c m m h g the private irmestcPr. I also feel quite c u n S e
wcPrking w i t h the amlytical aapeds of the bmineas
as feasakdity
analysis, cust mections, bu3gets, etc.. I have had paet expriencc in
the efforts of sub aontzadors far different m e c t s .
~~
resune and @xmemmber wtrre I may he reached. 1f

I wculd appeciate the. d m ~ to
~ =met
you have any msihle -ties
with YOU. 1 -iate
your time and csnsideratM, and wish ycu the best
in your future ventures.
Ehlosed you will find my
Stanley J. C a t e r k e
4)
P.S. This inquiry is in strictest confidence.
--
r
,
'
55 Butler Ave.
Lancaster, PA 17601
(717) 299-5958
M r . Larry Zielinski, V i c e President

Ommmealth Naticmal Bank
28
Square
Lancaster, PA 17603
1
Dear Mr. Z i e l i n s k i :
As per
our conversation this past mxuntng, enclosed you will find my

resune. One of the main ream^^ for my decision to make a career cfirrnge is
thatIwouldliketo n w e m a e ~ t h e d i r e c t i c n o f ~ t e f ~ a n d
I am firding that
m
t cccupatian is taMng me further fran that
objective. I have been dealing in the financial in3ustq far the past 4
years, since graduatirq frcm odlege. I have beenvery mtmaskl inmy
field, hmmx I feel that this is a critical time in my cmeer in that it
is only going to b e a h m o r e d i f f i c u l t to make the transiticnas timegoes
on.
BecauseofthefactthatComnaarealthhas~mnesalesand~
driven due to the carpetiticn in the financial services im%stry, my past
sales experience and reoord would be of significant benefit regarding a
transiticn into ycnu -tian.
I have learned the b d m i c a l aspects of
an-prate finance i n mae of an idirect m y thm@~my education regarding
aaprate stru&ums and strategies as relatirq to investmer~ts. I am
familiar w i t h the f h a m i a l statenents of carpanrations, and have a very
broad~tanaingandexperienwin~iness.
Iwouldbeveryinterestedin~mneabauttheopporhrnitiesthatyou
I am lcoking for a salary in the $30,000
new have within ycur organization.
range.
L
L
I
I want t o thank y m
for y a m time and m i d e r a t i o n .
OK P r c p x t i e s
i
h
39 North m k e t Street
Lancaster, PA 17603
ATIN: Don K. lJ@xse
Iwouldliketo thankycu forycurtimaandaonsideraticnregardingthe

positicn that is currently vacant in the crganization. I sense that (ken
Kugal m i a t e s is a very dynanic and exciting cqmizaticn that is lrnving
and graring very rapidly. The positim that you are trying to f i l l would be
a very challenging and interesting project. I feel very amfident that I
carld be very effective and h
e
l
w to ycur m z a t i c n in beirrg
regpanswe for the equity ne.ds for your p?mjecb. I would bc int%rested
in prtsuFng ax e i a t i a n s for the pos5ticn. lhere are a few queetians
that I have, ha*ever until ycu and ycur assodates +each a Badsian, I w i l l
wait to hear fran ycu. I would ilks to review th-,
andwill
leturn it to you in the very near future.
Please eend my thanks to Ed and Owen for thier ansidemticns.
Again, thanks, and I look faa*wrd to w i b l y WXking with yrxl in the
future.
-t
Regards,
HOW TO USE
OUR SERVICES
-\
Our services may be retained in any combinaIn necessary to benefit the athlete or to ysist the
ntract advisor in handling the financial affairs
the most competent and efficient manner. We
ve all heard of the horror stories of the famous
Irs and athletes; however, there are far more
bries of less publicized athletes that we never
ar which are the result of improper financial ade. We must remember that as the longevity of a
lyers career siiortens; due to
~ipetition,injury, attrition, and
.momic conditions affecting the
~fessionalsports industry, it
:omes even more important to manage the
ancial affairs in the most prudent manner
iilable.
PRO FINANCIAL
6ROUP, LTD.
-7'
OUR COMMITMENT
Ve guarantee that any and all services rendered
the behalf of any Contract Advisor or Profeslal Athlete will be performed in a satisfactow
nner or we will refund any and all fees. W;
ntain that our services will not only benefit the
:ers of the athletes. but will also enhance the
,
\..
--\.
1755 Oregon Pike

Lancaster, PA 17601
(717) 299-5958
"Dedicated to Performance"
/'
,,
OUR SERVICES
*
Pro Financial Group, LTD., is a highly

phisticated network of various professional ad;ors needed to perform financial advisory ser:es specifically for the professional athlete. The
twork consists o f several attorneys, accounnts, a Financial Planning Consulting Firm, a
zgistered Investment Advisor, a Broker Dealer
pport organization for some of the most compe11 Financial Planners in every state, and a group
investment advisors.
*
*
*
Estate Investments.
: ,
,. .
,
,:
, ,
: ..
. .
..
. . .*:..
. -
..
'
Dore Valnvanw. ESQ.: Representing the h w Firm

of Shirk. Relst, Wagenseller, & Shirk,
Legal Counsel for Estate Planning.
Our purpose is to provide Financial Advisory

rvices to professional athletes and support ser:es to other contract advisors that d o not have
:necessary resources to provide sound financial
vice. We wish to work right along with your
ntract negoliations to ensure the best financial
ckage given the athlete's individual situation.
e d o not wish to get involved in the actual
gotiations; howcver, we d o feel that it is impori t to realize the financial implications of certain
ategies in conjunction with given situations.
Tax Planning
* Cash Management
Flnsnclai Plsnnlng Consullane. R.I.A..

FPC is the Rcgirtcrcd lnvcslmcnl Advisor, and is
a firm that provides various financial services for individuals and small businesses.
Financial Sewices Cotporatlon, of Atlanta. Gs.,
FSC is a Broker Dealer and support organization
for Independent Financial Planning Firms in all 50
states. They have a very large and sophisticated due
diligence department for life insurance products, investments and tax shelters. They also provide a network of some of the nations most competent Independent Financial Planning Firms that will be
available for your use.
Stanley 1. Caterbone. Certified Contracl Advisor,
NFLPA,
Responsible for all coordination of services and
President of S.J. Caterbone Associates, an indcpcndent Financial Planning firm catering to upper income individuals and small businesses.
Carl J. Frederick, M.E.D..
Strength Coordinator.
'
'
*
*
*
Individual Portfolio Management

Due Diligence Services for Tax Shelters and
Insurance Contracts
Third Party Negotiations for Deferred
Compensation Packages
Retirement Planning
Business Planning and Negotiations in
Mergers and Acquisitions
Real Estate Investment & Feasability Analysis
Estate Planning
Contract Advisory Services
Third Party Representation for Professional,
Business and Labor Contracts
THE FOUNDERS
Pro Financial Group, LTD. is an outgrowth of
S. J. Caterbone Associates, a Financial Planning
Consulting Firm. S. J. Caterbone Associates
specializes in managing the financial affairs of upper income individuals, small businesses and the
professional athlete. Because of the demand for
an array of diverse and extremely competent advisors in managing the financial affairs of the professional athlete, we feel that our success is due to
the large and ever-expanding information network
that we have developed. After discussing the needs
of several contract advisors across the country, we
have learned that we offer a very unique and
highly qualified financial support system. Pro
Financial Group, LTD. is now in the position to
provide the benefits of this support system to
other contract advisors.
mdt eral
......
SAVINGS- --'&
~
~~
PAY
TO T H E
ORDER
OF
>+
002530
JIM '12 86
.. .
. . ..
BANK
'
8-1
4:
DATE
TIMOTHY LANZA, ATTY.

AND STANLEY J. CATERBONE
AND MICHAEL T. CATERBONE
FEDERAL
HOME L O A N
BANK
1Ie002 5 3011'
oF PmTTsmumo*
PITTSBURTH. PA
C O L 3 0 0 L2 3 51:
D E T A C H A N D R E T A I N T H I S STATEMENT
PARENT FEDERAL SAVINGS BANK

DATE
6/12/86
3s IN P A I M E N T O F l T e H S D E S C R l m E D O E L O I .
o r c o a a E C r P L E I S E N O T I F Y U S PROMPTLY. N O RECEIPT O E S t R E D .
TIlE ATTACHED C H E C K
I FN
DESCRIPTION
LOAN 0 0 1 0 0 7 8 9
CATERBONE S.
DEBIT 1 0 1 0 - 0 1 FIRST CONVL MORTGAGE LOAN
AMOUNT
100,000.0(
The shares represented by this certificate have not been registered
CYWTER BUSINESS PlAN
FDR
JULY 1. 1986
LWGBER. PA -TION
TABLE OF CDKTENE:
Mission S t a W
Page 2
Corporate Objectives
Page 3
Eusiness Strategies
Pase 4
Distrifiutim Strategies
Page 6
Services Strategies
Page 8
Market R n e t r a t i m Strategies
Page 10
Page 11
Coqwrate Stanrlards
Page 13
I n i t i a l Capitalization
Page 14
Financial Iiiaights
Page 15
Contingency Plans
Page 16
=P -g-
Q-arp
Page 17
Organizational
(harts:
Wit A
Page 20
Wit B
Page 21
in
1. To m e the people of the caurty, state and ~ t i m
the hanjlirq of their finances through the m r t of azr financidl
planners ard other advisors, and their persond relationships with their
clients.
2 . To meet the expectations of our various constituercies:
planners, eaployees, stockholderr, and the people residing in the area we
serve.
rr~npany
as the major provider an3 setvicer of
financial prducts and advice in the clasely related fields of
invesb-m-~ts,financial mnsultation, mortgage banking, l i f e irmmnce,
prcrPertY and d t y in=-=,
taxes, law, ard real estate.
1. lb position the
2.
!Ib transform
the fra-ted
market of independent financial planners
into a quality group of clutstanling professionals nezketing under one

name, thus bringing order to the financial marketplace.
To place client interest first a t a l l times by delivering a
diversified prcduct through multiple qxmsors so as to always deliver
high-quality and fairly priced products representing the top 25%
3.
percentile of the matketplace.

4. Tb dwelop and maintain quality m i c e on previcllsly delivered
products by nranaging assets a t a reasoMble fee, thus freeing planners
frcaa the constant pressure of lMking new sales.
Fa insure the g-rwth of the business by hiring professional planners

in sufficient number so as to become the preeminent financial micc~npanyin the area served.
5.
6. !Ib use invcapital rather than loans and long-term leases to

minimize monthly expmses ard maximize profits, hereby assuring our
business gmwth and dwe1cpm-k.
7 . 'Ib enolxuage our planners t o beome stockholders in the finn, thus

satisfying their desire for mnazhip in a ccanpany of redl value. Also to
assure a more stable d e v e l o p a t of cur business through stronger ties
w i t h cxlr top planners.
8. To react to changes in the marketplace ahead of cur amptitim in
creative and thomqhly considered ways.
9. To maintain a strong professional/client relationship throuqh frequent

prsondl c o n t a d while using high-ted-oxrlcqy
.
.
. equipnent to enhance the
-
quality of our work.
corporate benefit plans and the media

continues to g m as a s q n e n t of the financial services business.
Mass m.rM5.q
Dwelap wrprate sales thrmgh the concept of cafeteria plans

hhich will dvlnge the enployee benefit mrket by a l l w i g
employees to w e t a prcentage of benefit dollars to the areas of
their choice. Also, continue to en@asize seminars targeting unique
organizations hhich have a strong relationship with the pblic for
specific financial products:
M. Charitable organization
Counseling center
charitable g i v w s e m b a r s .
estate planning s e m b r s
life planning seminars, etc.
Additionally, we will develop plblic awarmess by constantly advertiskg

the corporate mme via nekspaper ard radio.
1. Current Situation
W e crurently have 14 financial plannezs and 5 other pmfessiondls

Wtted to an August campncy in cur new space on the Oregon Pike
y anwng
,
the 16 people involved, we
i n Lancaster. ~ t i ~ l fman
have selected m g e r s for w offiin ,
lewkhq,
Reading an3 Landale. Based on l a s t year's business by those
dLready irnrolved, we e x p z t to g-te
2.7 millicsl dollin
revenue, and invest 54 million dollars in 1987.
an lancaster staff to 18 financial plWe plan to

6 othes p m f e s i d s . W e we plan t o locate and devela;, in
areas, we will OYIEentrate during w first year on w
operati-.
,
2.
Cuzlwt
and
w d
Situation
A t least 80% of our staff is caprcanprised of professiumls established
in business for a t least f w years.
We will m n t h to seek predaninately self-sufficient,

professional lVeteranstl of the industry. (Xrr desire is to
agpeal to their need for the fnxdan to plan and ccumnmicate rmre
effectively with their clients. We'll also offer a higher paycut,
mre varied products, Md a mre professiondl envkment. We w i l l
duplicate d y the msst criticdl brokexage house semi-.
PI-rn
Current Situation
(Continued)
-.
Planners have been stable in their relationship with past employers.
a very stable core of top planners in Lancaster, Pa., due

We
to strong nnnagement, staSle planners, strong local w
r
t systems,
an3 equity mmrship. We will m m t r a t e on local development
ahead of satellite dwelqment. We
a x satellite retention
*ere equity vmership is strong and mediocre
to be
where equity a n w d ~ pis weak.
Current Situation
are independent and thus use various p1amb-q txxhniques,
Planoffer a limited
ard differ in their areas of expertise.
~~
Zhe w i s e a d techniqaes of cau planners ard ather professionals

wjll be p l e d to provide clients with higher quality m i c e and
a broader line of products.
1. current Situation
Invesbnent products are predceninately delivered t k a q h captive

prcducts and manage
sales organizatims who manufacture their
which
all mmies. 'Ihis leads to limited product offerfrequently do not entirely satisfy specific mnsumer needs. It
also leadsto a d o n e product because there is no free mket
pressure to insme top qmlity products that are axpetively
priced.
planners w i l l be free to deliver the highest quality prcducts fran

of sponsors so as to work exclusively for the
mong
-fit
of the client. Zhe p l m my chccse top h % s t r y
pzrforuers, solid ard sizeable mopanies and a variety of ~~nichevt
products to f i l l wery client need.
2.
-
Current Situation
Fee-paid financial plans vary widely i n price and quality and

deperd mmt heavily on the individual developing the plan or
inteqxeting it. With regard to oonsumer expedations, the
marketplae is in disarray.
Fee-bsd plans in advance? of prduct sales shculd beccme sinpler

due t o tax reform. Ihe mjority of ad,plans were originally
purrhased for tax planning wfiich my no longer be needed. (Xlr
eqhsis w i l l be an a business being revived by tw r e f m
Asset m g e m m t or InvMonitoring. With clients paying
their taxes ard investing for appreciation rather than seeking
shelters, this business is eqected to bocmn. We plan to have an
in-hportfolio manger and mket-tk. W e plan to charge
clients an average of .75% for the service. A s planners gain
assets under nwagement, their annual h a m e fmn this ~ x l r c e
should alleviate pressure for new clients.
--
Currmt Situation
Associated prufessirmals sucfi as attorneys, acamtants, bankers,

and insuranoe a d real estate agents seldcan -te
to help
clients attain their g d s . Ihe ultimate contrul of the
lusiness tends to bacome divided, m a k b q pecrple
client's
defensive ard prducing fear of e x p u r e in the event of error.
Zhis often leads to professionals dxaditing one another or
taking W e nedit for advice leading clients to inaction.
In-hmse legal and real estate professionals will eMble a p l m

to get sudr services for his client witha-t fear of losing the
It will also help omsreve revenue
client to artside .
n
i
normally spent for sucfi mi-.
Current
Situaticxr
Ongoing client m i c e is a desire for m s t &es

in wr
marketplace. H m e r , the amstant pressure is a~pliedto plmlers
to produce new clients and new sales as 90% of eKnings is still
. camnission generated. Ihe t i m e required to praspert and close new
sales severely limits the necessary servicing time.
a &annual
Ongoing client m i c e will be =lied
newsletter anl sadannual client investmnt @te
delivered
?he
costs
of
these
services will
altermtely every three months.
be borne by client-paid asset m g e r w t fees, innzrance renewals
an3 mtml furd trailing oamnissions. Althmqh this is an
ambiticus, high-tech undertaking, our basic inclination remains
persondl client review ssqsions held on a regular basis.
We also expsct better crossover r e l a t i d p s and broadened
information base for both planners and specialists due to amon
laation.
m k e t Penetration Strateqy
1. Ekisting Clients
--
Planners an3 other professional joining
aur g-rw.xp w i l l have dwelaped deep perrcaral c l i e n t relationship
which a d d allw new investment dollto be handled by w

people. A s f o l l w systems are inp1ement.d we
65% of dl
businesstoccPnefmanthissalrce.
2. -presence-We plan to present fax seminars on a

joint basis with institutions mch as mlleges, wities, business
organizations and corporations. Cur semirrars include
vl,successful1 4 m Manaclemen++"- a sauptc-nuts on invproducts, vtpalf4mew
a l i f e planning s e n k a , wolaritable
and Retirenent Plannim S m h z ! s . CUrrently aur plarrners
regularly a p p e ~a t Millersville State CBllege, RCA, AZIXIA, St.
Jcseph's limpitdl ard e l m . W e also plan regular seminars for
the general public.
--
--
'Ihese t w o markets w i l l be
3. Business and Retirement Markets
singled cut for specific eqhasis because of the vast potential and
strcsrg reex3 for planning axrg these grou~s. Business benefit plans
and specifically "cafeteria plansv1w i l l be rwketed. RetireJrPnt
mrkets w i l l be expam3ed p r k i l y t 3 m q h increased sedmr
marketing.
Planner Sumort S w i c e s
It is cur plan to pruvide necwary office and clericdl m
r
t
services to help each planner or a f f i l i a t e d c t his o r her business.
W
e into limit w office to w r t services and not t o pruvide
-ific
marketim sexvices for individuals.
marketing efforts
will be for the gmup a t large, that is t o say t h a t individual
prospecting w i l l be a m n a l expmse borne by the planner or advisor.
Inherent in cur e r t services w i l l be the follwing:
1) Phone H a n d l i r q
including the f a c i l i t y to forward other
business lines to cnu c ~ t r a system
l
should a planner leave the
office.
a sample of tbank you,

referral appointrent setting, data requests, and ammnly
wd review l e t t e r s m y be selected and generated. Rzsonal
mrnsprdence w i l l
handled by our s t a f f , frea of charge.
2) m t i t i v e S t a m l a r d Bn-esmndence
3)
Business process^ ompleted applications w i l l be checked,

logged, oopied and m i l e d by aur cashiers. F o l l w p with
broker/dealer or p r d u c t qonsors w i l l be offered to premier
pIDducers only.
4)
cmwter Services
financial plans and invesbwmt rmnitoring
services w i l l be prarided through data base entry. Yass
distritution an3 hardplan generation w i l l be done on a
piece by piece and pmentage fee basis respectively.
5) p D f e s s i o ~ Networkinq
l
our in-house a f f i l i a t e s in law,
accounting, tax, estate, real estate, mortgage brukerage,
portfolio mamgement, l i f e innrranCe and pxqertq/casualty
insurance stand ready to serve clients related financial needs.
6)
Suwlv S c c k i m p m z p d u s , applications, trust a-ts

and
other forzs needed to conduct kusinesS w i t h cur r&
prcduct
suppliers w i l l be maintained.
7)
Reference and Pericdicals professiondl journals an3 data

services meet* the ammn need of cur advisors w i l l be
plrchased and w i l l be mintdine3 by cur office s t a f f .
Material unique to specialized areas w i l l be provided by those
planners K+-IO work in those areas.
8)
Cornrate Marketinq we w i l l p m t e the me of our firm along

w i t h all planner a f f i l i a t e s to gain p&lic awareness in wiess
of k h a t any irdividtual alone cauld achieve. W
e w i l l become the
best h m f
in Central Pennsylvania.
9)
minim and Education
Ro1h-g cur production will give us

additional lcut with sponsors, i r d u s t q t d m r s ard those
wishing to address cur e
p
. (bst shculd be 1ard
quality higher. It is cur plan to provide a mnstant f l u s of
information, new product profiles, ard specialized p 1 a m . h ~
techniques.
Size and strength of cur gmup should

allw us to t
Dirrcreaseconoessions made by sponsors wer m t s
m d l y negotiable by M v i d u a l s .
10) G m s Pavout Neaotiation
--
(XTR
ST-
FQR A GREAT CCMPANY
.'
Having w e l l established busprinciples is critical to the

m
y
p
e
r
s i m , hard vork an3
success of any new business.
sufficient capital oan rival its impJrtance. W e feel the need to state
the basic values of this firm so that the basis for the decision-making is
well established ard urdersbx5.
A great ampmy..
...l.
Serves its
custarrers well.
m hi* principles.
3.
~EG&PS
4.
Makes
5.
taa.rds the interests of stakholders and

emplw-.
m ~ ~ l regularly.
g r
6. ~nanrsits mission.
7.
KnaJs its p i t i o n i n the nar-lace.
8.
~ e s i r e s s o l i dommmity ard corpxate

citizenship.
9.
Hires mprior people ani pays than vell.
lo. Will cha.qe carne innidst cfvlngirq tines.

11.
Has the vision to see cpprtunity.
12.
Retains- .
13.
Has a bias for action (do it, try it,

fix i t ) .
14.
Is value driven.
spirit.
15. Regards people as its greatest asset.

16. Uses a lean staff , a shple f o m management
laJest level.
17.
pus.'les d e ~ i ~ i ~ - m a k jto
n gthe
18.
W t e s deserving people, rqaxdless

of race, sex, or religion.
3We hereby resolve to W d such a t x n p n y .
'Ihe abo\~epages have been mitted due to the legality of precedbg

the O f f e r h I~~~
in mnjunction with Federal and State Securities
Regulations. An Offerins P I e m o w w i l l be issued to a l l htere&&
parties upon registration w i t h the apprapriate authorities. 'Ihir; M c l
happen on or before August 1, 1986.
The begining phase of n o s t businesses phase is dma~teriZdby

erratic sales trerds, fluctuating m k e t share, increashq dependence on
inproving technological systems, and possible cash flm losses. We do not
exped to face any of these pmblems because of the established nature of
the planners we are hiring. H-er,
we wauld be foolish to believe that
we scnnehm were inmme fmm such potentidl pmblems and therefore need not
to plan for these wentudlities.
(Xzr very first need a
d be to raise capital thrmgh stock plrcXases
beyonrl cur initial capitalization t
s
to the extent of at least
$loo,OOo to cover any initial shortfall in revenue or budget projections.
'Ibis wmld protect us from going the way of nwst mdercapitalized
businesses---.
m y , we e q e t to invest heavily in state-of-the-art
technological s y s k m so that we do not face ned hardware/sofbare charges
e ~ l yin cur business developwlt. Stan Catertune will devote m r h of his
mamgenent tine to this area.
h-iority will be given to rwiewiq perfoOmarm against objectives on
a m t h l y basis. All abjectives will be quantifiable aid measuable, ard
as necesaq adjustments will ke made and mnitored accordbqly. Such
scrdiny of perfomaxe will allw us to oonstantly assess and respand to
any pmsible s h o ~ i r g aid
s to market needs.
C u r mgement i
s d t t e d to deriving a large portion of its
personal i x a ~
fmpn serving clients as crpposed to relying on managemmt
i . . 'Ihis should preserve w cash flm and insure its grcrJth.
Stanley J. Catertam is axrently proprietor of S. J. Q W n e

Associates, a Financial Planning Firm specializing in but not limited to
upper inwne individuals. He is also president and founder of Pro
Financial Grarp,
, a firm prwiding financial -ices
and amtractual
negotiations to Professid Athletes an3 Agents.
Stan began his career with a financial sdxidiary of m i c a n

Express, I E Financial Services. He was hired by and worked w i t h Bob
Kauffmm for six mths before Bab was prcnmted to the Florida area. Stan
developed a practice center& around fee-p l m that fowed on
the tax aspects and conoerns of individuals while they pertained to the
clients investmenk and werall financial situation. While at ID6, Stan
was one of the leading planners in the nation to utilize fee based
plannirq at its inception. He was one of the tap producers in centtal
Rennsylvania, an3 ranked rnnnter 5 in the nation in his class. He also had
closed one of the biggest estate planning cases in the division.
f
i
In January 1985, Stan left I13S and became ird@ent

to provide a
better product line for his clients and to escape the pqxietary
s very creative and has developed a sbmq practice
environment. He i
ammg physicians.
Stan has dwelaped a variety of professid networks thmu@xut the

country with rqaxd to the various Sports Professionals that he works
with. He is currently working on a joint venture with fornrer Chief
Financial Officer and Vice President of jloubledav Fu?Aishina m,
Richard E. Madigan. He i
s lookhg to Stan to help him manage an annudl
inamne of $7 million fron the 20 Professional Athletes that he auwrtly
IMMges.
Stan has helped to develop the Central m l v a n i a Chapter of the

Internaticmal Association of Financial Planning, and had organized and
nieeting with Alexandria
attracted nwre than 100 m a t oattend a
Amstrong, one of the more pnahlnent Financial P1arvm-s in the nation, who
is cxlrrently the National President of the IMP. He is also a mPmber of
the Estate Planning Council of the Instiof Certified Financial
P l m . Stan is currently a Certified Contract Advisor of the National
Fwtbdll League Players Association an3 the NBA. Stan will be an
Exative Vice President respnsible for professional networking and
market*
and sate of the fiscal and negotiating functions.
Fbb Kauffman is wrrmtly the National Sales Manager, at large, for

FSC Seolrities (brporation. FSC is a b r o k e r M e r with a 1200 planner
sales force. It raised wer 600 million dollars of investment capital in

1986. Bob's respnsibilities include dweloping a ccanpany-amd
distribution system wi-~er&y FSC pralucts and services are delivered to the
pblic-at-large Umqh FSC Financial Service Centers. E& is also
reqmnsible for recruiting pmven financial planners thrcqhout the natior.
for Financial Senrice Corporation. He also contributes to the strategic
planning of sales for FSC m i t i e s Corporation..
Bob began his career with a financial subsidiary of the American
Wress Corporation in 1976 upon his graduation frcan Millersville S t a t e
College in Mill-ille,
Zknnsylvania. In his f a r years of direct
selling to the plblic, he became the y q e s t perscm in the a m p n y to
achieve multi-million dollar praluction status at the age of 25. Bob then
began to take on additional assxiates as he began to huild his practice
in Lancaster, PP-mqlvania. In j u s t two years, his pzlctice had gru.m to
12 representatives handling wer $12 million dollars a year in annual
investnmts and managing in ex-s
of $60 million dollars of client
mnies. W e building this operation, Bob continued to be the leading
producer in his office and the region.
Bob was then pmmoted to division mnager of the West Coast. In eat
position, he tripled the size of the sales force an3 increase3 volume wer
500% in a period of 2 years. His division of American Express handled
w e r $100 million dollars of investor mnies.
Bob was then asked to take wer the largest operation in the
scutheast, located in Atlanta in 1984. With wer 60 financial planners,
ha7dling an wcess of $200 million dollars of investor's mmies, Bob again
simed his territory into the top echelon of the ccnnpany.
With FSC since 1985, Bob has opened the first three aapny-mnd
offices and nm supervises an excess of 75 qloyees. His qmations new
rank 4th in all FSC related planning -ti=.
Bob brings to Financial
Management G r o u p , Irc. 10 years of experience in the financial planning
industry in both sales and sales -gment.
He is a member of the
International Association of Financial Planners and is in the process of
capleting the cwrre wok for r i f i e d FFinancial Planners designation.
Bob is a frequent speaker at both corporation and business financial
planning functions and has been quoted frequently in local an3 national
media pblications. He continues to hardle investments for select
clients.
Bob will serve as president, chaof the board and will be the
largest s ~ o l d e r . Kis e x p r i m in - g i q
and developing large
financial service organizations will pmvide the leadership and expertise
necessary to insure the growth we envision.
BICGFAWY OF M I ( H P S . M. HAKIZEIT. AFP
Mike Hartlett is a r r e n t l y an irdepdent financial planner and heads his

om l d firm
Financial Plannbq Bnsultants. Mike is a licensed
m i t i e s principal and fully a l i e searrities broker. He has
ccanpleted the Oertified Financial Planning program with the College for
Financial Planning and currently holds an Associate Financial Planner
designation. He w i l l m i v e the Certified Financial Planner designation
in Feb1987.
--
Mike began his Financial Planning career f i v e years ago with ILS a
subsidiary of m i c a n Mp-.
IXlrhq his career w i t h ILS he
amnq
the firm's top planners. He was on the Presiderrts Advisory Cavril for
I= i n 1985 and f m a f i e l d of wer 5,200 lX6 planners, finished amg
the tap 66 financial planners in the cwuntry. In 1983 am3 1984 he was
amg the top three in IR?&Llified
Plan Frcduction. In Septanber, 1985
he left ILS to f o n n h i s om financial planning firm.
Mike has an extensive knmledge of corporate retirement plans ard pension

prograns and has excelled in retirement planning f o r individuals. He
auxlucts financial plin several large fancaster &mty
corporations and is active in prancrting financial planning in fancaster
-'a'.
Mike currently m g e s i n excess of $14 million in c l i e n t assets.
Mike is carmLitted to deliver* the highest quality p1armis-g sewices to

his clients. He beliwes that m
r
n
l attention and sexvie are the key
t o a strong client/planner relationship.
Mike w i l l sewe as Executive Vice President of Financial Manag&
Group,
Ltd. He w i l l be in charge of operations and serve as chief financial
offi-.
Firrancia. Securities, Inc.
............... .?he Broker Dealer
Em Advisory, ........................
..The Registered Investment Advisor
.......The Insumme Agency

In=. .............?he Acamting Finn
Financial Savims Insurance Agemy

EM; Acmmting Sezvices,
Financial tbrtqages Services, Inc. ........?he

Wealth MaMgement Semi-,
..
..........The
Financial PlarPling &msultants, Inc. ......We
Mortgage Bmkmqe Firm
Portfolio MaMger
Financial Pla-
&
Market Timer
Finn
mmTE FmG (In Hause)

Eager Real Estate
........................Redl Estate Services
O'my ti smith .............................Legal
Counsel for Business
&
Xeal Estate
.........Legal cavrsel for Estate Planning

W e l l Associates, Inc. .................. .Property 6 Casualty Servicrs
Pro Financial harp, Inc. .................Servicc5 for Profe55ional Athletes
Shirk, Reist, Wagenseller
&
Shirk
Please note that the W e f i n s are currently wrler nqotiations and have given
ve.rhl amnnitment for affiliation.
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D W E I.
IOURII1
U C S J. DoOD-0
In re:
July 31. 1986
Financial Management Group. Ltd.

Draft Offering Memorandum
Mr. Stanley J. Caterbone

255 Butler Avenue
Lancaster. PA
17601
Dear Stan:
I have now reviewed the draft Offering Memorandum for Financial

Management Group, Ltd. which I received several days ago, and my connnents
follow.
The cover page indicates that stock will be sold at two different
prices, but it should include reference to the fact that the lesser priced
shares will be offered to persons who will affiliate with one or more of the
subsidiaries. This can be done by a brief notation on the cover, together
with a cross-reference to the section in the Memorandum where is subject
will be discussed more fully. There should be a rather full discussion
somewhere in the document indicating the qualifications and requirements
pertaining to persons who desire to become affiliated, and as we discussed,
this also should be incorporated into a form of agreement or agreements
which should be attached as an exhibit. In this connection, should people
who affiliate and later terminate be required to sell their stock back to
the corporation?
than shares of
the cover page should clear1
clear on that point, and co
The Memorandum should be much more descriptive in outlining the
proposed activities of each of the subsidiaries. In that connection, I
suggest with respect to each subsidiary the following information:

July 31. 1986
Page 2
Reference to the fact that the subsidiary has not yet
1.
begun business, as well as the date by which it is reasonably
anticipated that some business activities will begin.
Xore detailed information on just what each subsidi2.
ary will do.
,-
.2
Likewise, where applicable, more spec1fic information

3.
as to licenses and regulatory requirements (if any) which must be
met and continually observed by the subsidiary.
A discussion identifying the directors and officers
4.
and also who will manage its business operations. If formal
arrangements have been made with specific persons, so indicate;
if the business will be operated by an employee or independent
contractor yet to be designated, give details, including the
terms of employment that are expected for any such person.
In this connection. I would think you would indicate the possible difficulty
of retaining such persons as one of the risk factors. Also, if such persons
will continue to operate or be connected with the businesses from which they
come, you will have to point out the possibility of a conflict of interest
on their part. Further, it is my impression that these businesses are
highly competitive. All in all. you should discuss among yourselves what
type of information about the proposed businesses a sophisticated potential
investor would want to know, and then state your response in vriting.
Obviously, I would err in favor of more, rather than less, discussion.
With reference to the parent corporation, you should give detail sirnilar to that you will give for the subsidiaries. Further, you may want to
discuss how the parent will "manage" the subsidiaries; that is, whether each
subsidiary will be largely autonomous or whether parent company officers
personnel will be directly involved with the subsidiaries' activities.
With further reference to "risk factors". I would think you would add
a section stating that a11 of the business activities are in fields that are
highly competitive. Also. I would think you should state that, while the
founders have had considerable experience in certain of the activities, they
have not had such experience with respect to all of the other subsidiariesr
proposed businesses; further. I presume none has had experience in managing
a group of companies and business activities such as is contemplated in this
case.
,.
'?'
2'
With respect to the use of proceeds, you should consider a further

breakdovn of at least some of the components "working capital" category for
which $187,000 is allocated which is a relatively large amount. Among other

July 31. 1986
Page 3
thoughts, you might refer to the lease obligation (and any other present or
contemplated contractual-obligations), wages for secretaries and the like.
and professional expenses (e.g.. legal and accounting).
As discussed, and in relation to the use of proceeds. you will have to
with the matter of the salaries to be paid to key management personnel.
I note your disclosure that each will receive a salary not exceeding
$60,000. but that raises the possibility that virtually all of the vorking
capital could be used for that purpose. If I were a prospective investor. I
rant additional infomation, as I would be concerned about the potenof a large part of the proceeds to pay salaries. I would also ask
to what extent revenues generated by the businesses would be able to pay
part or all of the salaries. Perhaps one approach, if agreeable, would be
to disclose that not more than half (for example) of the salaries paid
during the two years would be from proceeds of the offering.
Under the "Business" discussion, you make reference to legal services
as o m k e fiel-ds of activity for the corporation. You will want to
check with legal c2mae-l wvho would be involved, but I am doubtful that under
cal standards your corporation can offer legal services.
prOfessio
As I review the "Business" section, and as a potential investor. I
would want to horj more about how solid the arrangements are with " p l a q
and affiliatesw. and also have some idea of the timetable by which the
c/
corporation believes it can begin to engage in business.
With reference to "Management", you need to identify the Board of

Directors. Also, you should indicate whether management will provide
time services, and if not, what approximate percentage of their time is
,expected to be devoted to the organization's business.
v-
'
iI
I!
The biographical summaries, in my view, should be toned down in order

to be somewhat more "matter of fact" in tone. In this section, as in the
rest of the document, you must be able to support each fact that is stated.
and some of the disclosures are a bit vague. An example is the reference to
Bob Kauffman "handling o7er $12,000,000 of investment ponies per year" and
having "an asset base of up to $60,000,000". Also, while you do indicate
the functions each of the three of you will have. I think it would be useful
to be a bit more specific.
With respect to "Certain Transactions', you must be sure to disclose
fully any arrangement or situation pnrsuant to which any director or officer will have dealings directly or indirectly with the corporation. For
example, if any
will continue to be retained by your present employer
OW
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In Re:
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S
August 7. 1986

Our File No: 11489-001-5
Stanley J. Caterbone. Executive

Vice-President
1755 Oregon Pike
Lancaster. PA 17601
Dear Stan:
1
As we discussed, it will be necessary to file five copies of Form
D not later than 15 days after the first sale of securities in the
proposed limited offering. This requirement is sunnnarized in the first
paragraph of Form D, a partially completed copy which is enclosed. We
will discuss the actual mechanics of filing, as well as completion of
the form, after you have reviewed the enclosed.
Please also note from that paragraph that it is necessary to make
one or more additional filings as the offering progresses and is completed.
This will be your responsibility, as only you will know how long the
offering will continue and when it is completed. It is most important
to make these filings in a complete and timely manner, as failure to
do so will make the exemption under SEC Regulation D unavailable, and
therefore may result in a violation of the registration provisions of
the Securities Act of 1933 and, consequentially, potential liability
for the directors and officers.
You will note that in several places I did not have sufficient
information to complete the form, and I will rely on you to supply this
information. I have marked where these items appear. In particular.
you will have to complete Page 5, which requires you to itemize the
offering expenses, and then allocate the use of proceeds. You will note
Stanley J. Caterbone. Executive

Vice-President
August 7. 1986
Page 2
that it is permitted to estimate these emounts, although in the supplemental

filings the estimates should be revised to reflect actual figures.
Please review this document closely. as it is my strong suggestion
that the document should be complete and ready for filing before I leave
for vacation. You will then be in a position to file the five copies
directly with the SEC as soon as the first sale has occurred. Your signature
should go at the end of the form vhere indicated, but please do not date
the form.
Sincerely.
McNEES. WALLACE 6 NURICK
WJJ: jp
Enclosures
MCNEES. WALLACE & NURICK

ATTORNEYS AT LAW
100 PINE STREET
P. 0.BOX 1166
HARRISBURG. PA. 17108-1166

T c ~ r w o ~(717)
r 232 - ~ o O O
August 11. 1986
In Re:
Financial Uanagement Group. Ltd.

Our File No: 11489-001-5

Financial Management Group, Ltd.
1755 Oregon Pike
Lancaster. PA
17601
Dear Stan:
1
The purpose of this letter is to address generally the requirements
you must meet in connection with the actual offer and sale of securities
by the corporation pursuant to the exemption under Section 203(d) of
the Pennsylvania Securities Act of 1972 with respect to which a filing
has been, or is about to be, made with the Pennsylvania Securities
Commission.
As an initial matter, as you are aware no sales may occur until

the materials have been "cleared" by the Pennsylvania Securities
Commission. That will occur initially via a telephone call from the
Cornmission staff to our office, at which point we will advise you.
Thereafter, the staff will send a letter of confirmation. Alternatively.
as we have discussed, it may be necessary to deal with one or more staff
coments before clearance can be obtained.
At the point clearance has been obtained, you may distribute copies
of the Offering Memorandum subject to the numerical limitations of Section
203(d) and regulations thereunder. As we discussed, the Memoranda should
be numbered consecutively, and the number and name of the recipient
of each copy should be recorded in your records and written on the
upper-right hand comer of the Memorandum in the spaces provided.

August 11. 1986
Page 2
Under ~ e A n s ~ l v a n iSae c u r i t i e s Commission regulations, you a r e required

t o keep t h i s type of record; s p e c i f i c a l l y , you must maintain a l i s t
showing ( i ) t h e name and address of each o f f e r e e , ( i i ) t h e name of t h e
person making t h e o f f e r , and ( i i i ) t h e d a t e t h e o f f e r i s made. As we
previously discussed, t h e numerical r e s t r i c t i o n s a r e t h a t a maximum of
90 o f f e r s and 35 s a l e s may be made t o Pennsylvania r e s i d e n t s i n any
t v e l v e month period.
The foregoing r e l a t e s only t o o f f e r s and s a l e s made i n Pennsylvania.
and i n t h e w e n t you intend t o make any o f f e r s o r s a l e s elsewhere. it
v i l l be necessary f o r a review t o be made of t h e applicable s t a t e "blue
skyw s e c u r i t i e s law. C e r t a i n of such s t a t e s t a t u t e s permit a small
number of o f f e r s and/or s a l e s t o be made without requiring any f i l i n g s ,
while o t h e r s t a t e s r e q u i r e f i l i n g s t o be made e i t h e r before o r a f t e r
o f f e r s o r s a l e s a r e made. I n a l l events, you should be very a l e r t t o
t h i s matter, and determine s t a t e s e c u r i t i e s law requirements before
approaching prospective i n v e s t o r s i n o t h e r j u r i s d i c t i o n s .
As f a r a s f e d e r a l s e c u r i t i e s laws a r e concerned, a s ve have discussed
i t v i l l be necessary t o f i l e Form D with t h e S e c u r i t i e s and Exchange
Commission not l a t e r than 15 days a f t e r t h e i n t i t i a l s a l e is made i n
t h e offering. We must r e l y on you t o a l e r t us vhen such i n i t i a l s a l e
has occurred, a s of course we have no independent means of knowing vhen
t h a t has occurred. Accordingly, please c a l l Mike Jarman o r me a s soon
a s t h e f i r s t s a l e a c t u a l l y occurs.
Section 203(d) of t h e Pennsylvania S e c u r i t i e s Act p r o h i b i t s "public

media advertisement" and "aIass mailing" i n connection with t h e s o l i c i t a t i o n
of investors. Similarly. SEC Regulation D, vhich i n e f f e c t provides
t h e exemption from f e d e r a l r e g i s t r a t i o n upon vhich r e l i a n c e i s being
made, p r o h i b i t s "any form of general s o l i c i t a t i o n o r general advertising".
including published o r broadcast ads o r n o t i c e s and seminars whose attendees
have been i n v i t e d by any general s o l i c i t a t i o n o r advertising.
As t h e o f f e r i n g continues, t h e o f f e r i n g materials must be updated

by supplement o r amendment t o advise i n v e s t o r s of m a t e r i a l changes
a f f e c t i n g any of t h e disclosures.
I hope t h i s general o u t l i n e v i l l be of use, and of course i f you
have any questions o r need any f u r t h e r information, please l e t us know.
Sincerely,
BY
August 19, 1986
Mr. Joseph Lyden

Pennsylvania Securities and Exchange C m i s s i o n
333 Market Street
Harrisburg, PA 17101
Dear Mr. Lyden:
Enclosed is the edited offering memorandum for the Financial Management

Group, Ltd. Please note that we are in the process of assming the RIA
of Bravero Financial Services of Lewisburg.
If you have any further questions please call.
Sincerely,
SJC/mld
Enclosure
LAW OFFICES
O'DAY0
SMITH
243 NORTH DUKE SIKEET
LANCASTER, PA 17602
2QO4 NORTH BROAD STREET
MICHAEL P. O ' M Y
EDWARD H. SMlTH
PHIUDELPHLh.PA IS121
1215b763-5280
17171 393-4001
T I M O M A. IAN-
005 WEST MAIN STREET
M O W JOY, PA 17552
17V)653-8131
A u g u s t 2 2 , 1986
M r . S t a n l e y J. Caterbone
F i n a n c i a l Management G r o u p , L t d
1755 Oregon P i k e
L a n c a s t e r , PA 17601
Dear S t a n :
Enclosed herewith p l e a s e f i n d i n v o i c e p e r t a i n i n g t o t h e
f o r m a t i o n o f F i n a n c i a l Management Group a n d i t s s u b s i d i a r i e s
t o g e t h e r w i t h a n i t e m i z a t i o n o f a l l c o s t s and e x p e n d i t u r e s
made.
If you h a v e a n y q u e s t i o n s , p l e a s e f e e l f r e e t o c o n t a c t
me.
Very t r u l y y o u r s ,
h SMITH
,A+&Timothy A.
TAL:djg
Enclosure
tinza
LL--
I h W OFFICES
O'DAY0 SMITH
243 u o n T n DUKE STREET
LANCASTER, PA 17602
2004 NORTH BROAD STREET

MIlADELR(IA.PA 19121
I215b763.5280
,717) 393--1
eo5 VEST
MAIN m E E T
MOUNT JOI. PA 175%

lfVb653-0131
A u g u s t 25, 1986
Commonwealth o f PA
Department o f S t a t e
Corporation Bureau
308 N o r t h O f f i c e B u i l d i n g
H a r r i s b u r g , PA 17120
Gentlemen:
E n c l o s e d h e r e w i t h p l e a s e f i n d A r t i c l e s of I n c o r p o r a t i o n f o r
a p r o p o s e d b u s i n e s s c o r p o r a t i o n t o b e known a s FMC S e c u r i t i e s ,
lnc.,
R e g i s t r y S t a t e m e n t i n t r i p l i c a t e and check i n t h e amount o f
$75 r e p r e s e n t i n g f i l i n g f e e s f o r same.
I t r u s t you w i l l f i n d e v e r y t h i n g t o b e i n o r d e r .
V e r y t r u l y yours,,
O'DAY
.,I .\I.
,
:djg
Timothy A.
.
Er~closures
cc:
& SMITH
Mr. S t a n l e y J . C a t e r b o n e
Lanza
MICHAEL P. O'DAY
EDWARD H. SMITH
TIMOTHY A. UNU
243 NORTH DUKE STREET

LANUSTER, PA 17642
3934CQ1
August 22, 1986
1
Mr. Stanley J . Caterbone
F i n a n c i a l Management Croup, L t d .
1755 Oregon Pike
Lancaster, PA 17601
-I
- ---
~ r o f e s s i o n a ls e r v i c e s r e : F i n a n c i a l Management Group. L t d . . and

s u b s i d i a r y c o r p o r a t i o n s , including: ~ o n s u l t a t i o n sand advice;
preparation and f i l i n g of A r t i c l e s of Incorporation f o r F i n a n c i a l
Management Group, L t d . and nine s u b s i d i a r y c o r p o r a t i o n s ; prepar a t i o n and placement of l e g a l n o t i c e s .
Costs: 1 ) F i l i n g f e e s t o Corporation Bureau
nine c o r p o r a t i o n s a t $75 each '
$675 .OQ
2) Legal Notices ( s e e a t t a c h e d i n v o i c e s )
402.05
Financial
3 ) Corporation o u t f i t
76.32
Management Group, L t d .
4 ) Additional s t o c k c e r t i f i c a t e s
Finan45.76
c i a l Management Group, L t d .
T o t a l Costs
Total f e e s and c o s t s
Less c o s t s r e t a i n e r
Balance Due.
MOUNT JOY. PA 17552

U3-9131
LAW OFFICES
O'DAY 0
SMITH
W N O R M DULL ITNEET
LANCASTER, PA 17602
NILH A E L P. O D A Y
~ w h w . rI ~i .
SMITH
1 1 # . 4 ~ 1IIY
1
A. U N L A
17171 393-4UOI
2001 NORTH BROAD STUEET

PnllADELPtllh.PA 10121
121517L1J.51BO
005 VEST MAIN STREET

Y O U M JOY. PA 17552
1717,653-9131
A u g u s t 2 5 , 1986
I n t e r n a l Revenue S e r v i c e C e n t e r
P h i l a d e l p h i a , PA 19255
Gentlemen:
E n c l o s e d h e r e w i t h p l e a s e f i n d A p p l i c a t i o n f o r Employer
I d e n t i f i c a t i o n Number f o r F i n a n c i a l Management Croup, L t d . and
F i n a n c i a l S e r v i c e Insurance Agency, I n c .
I t r u s t you w i l l f i n d
e v e r y t h i n g t o be i n o r d e r .
O ' D A Y & SMITH
T i m o t h y A . Lanza
Enclosures
cc:
Mr. 2 t a n i e y J . C a t e r b o n e
..
..
FINANCIAL MANAGEMENT GROUP, LTD.

(a Pennsylvania Business Corporation)
TO:
Financial Management Croup, Ltd.

1755 Oregon Pike
Gentlemen:
The undersigned, intending to be legally bound, hereby irrevocably
Shares of Common Stock, no par
tenders this subscription for
value, of Financial Management Group, Ltd. (the "Shares"), at a purchase
in the aggregate), including
per share ( $
price of $my check for the latter amount.
,I
This subscription may be 'rejected by the Company in its sole discretion. If this subscription is rejected, or if it is determined that this
offering will not be consunanated for any reason, the payment tendered by the
undersigned will be returned to the undersigned, without interest, as soon
thereafter as practicable.
i
-
The Company will sell the Shares to the undersigned in reliance upon
the following representations, warranties and agreements of the undersigned,
which the undersigned hereby makes in favor of the Company:
(a) The undersigned has received the Offering Memorandum dated
August-,
1986, prepared solely by the Company, and, prior to signing this
Subscription Agreement, has carefully reviewed the Offering Memorandum, and
has relied solely on the information contained therein, information
otherwise provided to him or it in writing by its officers, or information
from books and records of the Company. The undersigned understands that all
documents, records and books pertaining to this investment have been made
available for inspection by his or its attorney.and/or his or its accountant
and/or his or its purchaser representative, and himself. The undersigned
and/or purchaser representative(s) has had a reasonable opportunity to ask
questions of and receive answers from the officers, concerning the offering
of the Shares and all such questions have been answered to the full
satisfaction of the undersigned. No oral representations have been made or
oral information furnished to the undersigned or his or its purchaser
representative(s) in connection with the offering of the Shares which were
in any way inconsistent with the Offering Memorandum.
(b) The undersigned (i) has adequate means of providing for his or
its current need and possible personal contingencies, (ii) has no need for
liquidity in this investment, (iii) is able to bear the substantial economic
risks of an investment in the Shares for an indefinite period, and (iv) at
the present time, could afford a complete loss of such investment. The
undersigned together with his or its purchaser representative, if any, has
such knowledge and experience in financial, tax and business matters as to

enable him or it to utilize the information made available in connection
with the offering of the Shares to evaluate the merits and risks of the
prospective investment and to make an informed investment decision with
respect thereto. The undersigned recognizes that the Shares as an investment involve significant risks.
(c) The undersigned is acquiring the Shares for his or its own
account for investment, and not with a view to distribution or resale, and
understands that the sale of the Shares has not been registered under the
Securities Act of 1933, as amended (the "Act"), or under any state
securities laws in reliance upon exemptions therefrom for non-public offerings. The undersigned understands that the Shares must be held indefinitely
unless the sale thereof is subsequently registered under the Act and under
certain state securities laws, or an exemption or exemptions from such
registration are available, and that the Company is not required to register
the Shares under the Act, or to take any steps to perfect any exemption
therefrom for any resale of Shares pursuant to Rule 144 under the Act or
otherwise. The undersigned further understands that (i) the Company is
under no obligation to register the Shares on his behalf or to assist him or
it in complying with any exemption from registration, and (ii) the certificates representing the Shares (and representing shares of common stock upon
conversion of the Shares) will bear a legend summarizing the foregoing
restrictions and the 12 month prohibition of sale provided in the Pennsylvania Securities Act of 1972.
(d) The undersigned understands that no federal or state agency has

made any finding or determination as to the fairness of this investment.
(e) The undersigned realizes that the Shares are being purchased by
the undersigned solely for purposes of investment for the undersigned's own
account and not for the account of any other person and not for distribution, assignment or resale to others and the undersigned represents that no
other person has a direct or indirect beneficial interest in such Shares.
(f) The undersigned realizes that he or it may not be able to sell
or dispose of the Shares as there will be no public market available. The
undersigned agrees not to sell or otherwise transfer the Shares unless they
are registered under the Act, and under any applicable securities laws, or
an exemption or exemptions from such registration are available.
(g) All information which the undersigned has provided to the
Company concerning himself or itself, his or its financial position and his
or its knowledge of financial and business matters, is correct and complete
as of the date set forth on the signature page hereof.
PENNSYLVANIA PURCHASER STATEMENT
- PENNSYLVANIA INVESTORS ONLY.
The undersigned represents and agrees that he or it will not sell his
Shares for a period of twelve months from the date of purchase. The
undersigned understands that he or it has the right to cancel the purchase
of the Shares within two business days after making payment therefor.
The undersigned understands that he or it (A) has the right to withdraw his or its subscription, without incurring any liability to the
Company, and to cancel his purchase of the Shares within two (2) business
days after he or it enters into a binding contract of purchase by executing
and delivering the Subscription Agreement, or within two business days after
the exemption of this offering from registration under the Pennsylvania
Securities Act becomes effective, whichever is later, and (B) cannot sell
his or its Shares for a period of 12 months from the date of purchase if his
or its subscription is not timely withdrawn.
To accomplish this withdrawal, a purchaser need only send a letter or

telegram to the Company indicating his or its intention to withdraw. Such
letter or telegram should be sent and postmarked prior to the end of the
aforementioned second business day. It is prudent to send such letter by
certified mail, return receipt requested, to insure that it was received.
If the request is made orally, a written conformation that the request has
been received should be requested.
ACCREDITED INVESTOR STATUS:
INDIVIDUAL
If you are an individual and meet any of the following tests, please
initial in the appropriate spaces below.
I certify that I am an accredited investor because
1.
I had individual income (exclusive of any income attributable to my spouse) of more than $200,000 in 1984 and 1985 and
I reasonably expect to have an individual income in excess of
$200,000 in 1986. ("Individual income" means adjusted gross
income, as reported for federal income tax purposes, less any
income attributable to a spouse or to property owned by a
spouse, increased by the following amounts (but not including
any amounts attributable to a spouse or to property owned by a
spouse): (i) the amount of any tax exempt interest income under
Section 103 of the Internal Revenue Code (the "Code") received,
(ii) the amount of losses claimed as a limited partner in a
limited partnership as reported on Schedule E of Form 1040,
(iii) any deduction claimed for depletion under Section 611 of

the Code, and (iv) amounts contributed to an IRA or Keogh
retirement plan).
I have an individual net worth, or my spouse and I have a

combined net worth, in excess of $1,000,000. ("Net worth" means
the excess of total assets at fair market value, including home,
home furnishings and automobiles, over total liabilities.)
2.
ACCREDITED INVESTOR STATUS:
ENTITY
The authorized representative of any entity executing this Subscription Agreement should initial in the appropriate spaces below if the entity
meets any of the following tests.
The undersigned entity is
1.
A bank, as defined in Section 3(a)(2) of the Securities

Act of 1933, whether acting in an individual or a fiduciary capacity.
2.
An insurance company, as defined in Section 2(13) of the

Securities Act of 1933.
3.
An investment company registered under the Investment

Company Act of 1940.
4.
A business development company, as defined in Section

2(a)(48) of the Investment Company Act of 1940.
5.
A small business investment company licensed by the U.S.

Small Business Administration under Section 301(c) or (d)
of the Small Business Investment Act of 1958.
6.
An employee benefit plan within the meaning of Title I of

the Employee Retirement Income Security Act of 1974 and
the investment is made as a plan fiduciary, as defined in
Section 3(21) of such Act, and the entity is a bank,
insurance company or a registered investment adviser, or
has total assets in excess of $5 million.
7.
A private business development company as defined in

Section 202(a)(22) of the Investment Advisers Act of 1940.
8.
An organization described in Section 501(c)(3) of the

Internal Revenue Code, with total assets in excess of $5
million.
9.
An entity in which all of the equity owners and accredited

investors and meet one of the criteria for individual
accredited investors listed above.
If you checked (g), please complete the following part of

this question:
10.
(a)
List all equity owners:
(b)
What is the type of entity?
(c)
Attach a copy of your resolutions or other evidence

of the entity's authority to make this investment.
(d)
Have each equity owner respond individually to the

accredited investor criteria tests listed above.
An entity which is subscribing to purchase at least

$150,000 of securities, which amount is no more than 20%
of the net worth of the entity.
This Subscription Agreement constitutes the entire agreement between

the parties hereto with respect to the subject matter hereof and may be
amended only by a writing executed by all parties hereto.
This Subscription Agreement shall be binding upon the parties hereto
and their respective heirs, legal representatives, successors and assigns
and shall be enforced, governed and construed in all respects in accordance
with the laws of the Comonwealth of Pennsylvania.
The undersigned further represents and warrants that the residence set
forth below is his true and correct residence. The undersigned understands
and agrees t h a t t h i s subscription is made s u b j e c t t o the condition t h a t the

Company s h a l l have the r i g h t t o accept o r r e j e c t i t i n whole o r i n p a r t .
Individuals:
P r i n t o r Type Name
Signature
Date
Soc. Sec. No.
P r i n t o r Type Name
Signature
Date
Soc. Sec. No.
Residence Address
J o i n t Tenancy
Tenants
Common
Print or Type Name
Taxpayer I.D. No.
Signature
Print or Type Name and Indicate T i t l e

or Position with Entity
Date
ive. if
Purchaser ~e~resentat-ivehas read this Subscription Agreement, and to

the best of Purchaser Representative's knowledge, all of the information,
warranties and representations made by Subscriber in this Subscription
Agreement are correct.
Print or Type Name
Address
Taxpayer I..
No.
Date
Signature
Print or Type Name and Indicate Title

or Position with Entity
ACCEPTED FOR THE COMPANY BY:
Stanley J. Caterbone, Secretary and

Executive Vice President
Dated:
1986
"05L5 I " 0 S C " ~ t l C

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ROBLIT W. CHCRRY
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L I U I t C C A. ,"lllLl
t.OUIWOLa m011AN
ATTORNEYS AT LAW
100 PINE STREET
P. 0.SOX 1 1 6 6
HARRISBURG.PA.
171oe-11e6
lrrcr*o*r (717) 232-BOO0
..
*.
Mr. Stanley J. Caterbone. Secretary

and Executive Vice President
1755 Oregon Pike
Lancaster, PA 17601
Dear Stan:
Enclosed is a copy of the Subscription Agreement prepared for use in
connection with the limited offering you now are conducting. I have reviewed
the document, and it appears to be in good order and does not contain reference
to warrants. Of course, you should review the document to be sure you deem
it suitable.
We sent Form D to the Securities and Exchange Commission by certified
mail. return receipt requested. on August 27, 1986. As you are aware, such
filing is a requirement of the exemption from registration under federal
securities law, and one or more additional filings will be required as well.
as we previously discussed. In general, the requirements are that another
filing must be made every six months while the offering continues, and not
later than 30 days after the last sale of stock. As you will have this
information, and we will not, it will be your responsibility to stay on top
of these future filing requirements. For your use, an extra blank copy of
Form D is enclosed, which you can photocopy in order to provide additional
copies for use.
Sincerely.
WALLACE 6 NURICK
BY
WJJ/sg
Enclosures
Jamouneau
100 south Street. post m i c e
BOX
486
Harrisburg. PA 17408
Telephone 1747) 238-6715
COMMITTEE ON LEGAL
ETHICS AND PROFESSIONAL
RESPONSIBILITY
Chairrnon
M#Ch.,F A a,:>*
Vice Choirman
.lom-~
'j "=:%*?"
PBA Liaison
,%.IC
;=: :ae,
September 19, 1986
PERSONAL AND CONFIDENTIAL

Keneim L. Shirk. Jr.. Esciuire
Shirk, Reist, wagensellei and Shirk
P.O. Box 1552
Lancaster, Pennsylvania 17603-1552
Dear Ken:
This letter is in reply to your inquiry of August 6, 1986

which inquiry enclosed a copy of the 'Charter Business Plan for
The Financial Management Group, Ltd.' dated July 1, 1986. You
have requested advice concerning the ethical implications for a
lawyer associating with The Financial Management Group, Ltd.
Briefly, in review of the materials which you provided,
seeks to position
The Financial Management Group, Ltd. ('FMG')
itself as a "major provider and servicer of financial products
and advice in the closely-related fields of investments,
financial consultation, mortgage banking, life insurance,
property and casualty insurance, taxes, law, and real estate..
It is the intention of FMG to retain in-house legal and real
estate professionals to assist financial planners in rendering
advice to clients, in the words of the Plan, .without fear of
losing the client to outside interests.'
Identified as part of
the "Support Services' which FMG intends to provide to clients,
is so-called 'professional networking' described by FMG as the
use of "in-house affiliates in law, accounting, tax", etc., to
serve clients and their related financial needs. The FMG
proposals specifically identify so-called 'affiliate firms'
which include a real estate entity and two law firms, one of
whom is identified as 'Legal Counsel for Business b Real
Estate' and the other firm is identified as .Legal Counsel for
Estate Planningg. A true and correct copy of the Charter
Business Plan of FMG is attached hereto and incorporated herein
as Exhibit "A".
Kenelm L. Shirk, Jr., Esquire

September 19, 1986
Page 2
At the outset of our evaluation, certain points should be

made clear. First, a lawyer is entitled to engage in
businesses other than the practice of law provided that the
lawyer keeps such enterprises entirely separate from the
lawyer's independent practice of law. One of the problems
which an 'affiliatedg lawyer may face in associating with any
such financial services provider is the importance under the
Code of Professional Responsibility of maintaining the lawyer's
independent professional judgment on behalf of a client where,
for example, it may be argued that the lawyer can be said to
benefit because the tendering of advice may give rise to the
purchase of financial service products from FMG. Under those
circumstances, the lawyer may be subject to charges of
conflicts of interest arising under DR 5-101 which provides, in
pertinent part, that: "a lawyer shall not accept employment if
the exercise of his professional judgment on behalf of his
client will be or reasonably may be affected by his own
financial, business, property, or personal interests.'
Of equal concern is the ethical requirement prohibiting
in-person solicitation of a prospective client with whom the
attorney does not enjoy a present or former attorney-client
relationship. There appears to be a likelihood that FMG will
directly solicit, on an in-person basis, clients with whom your
law firm has no present or past attorney-client relationship
which may subject you to the charge that PMG has done for you
indirectly what you are prohibited from doing directly.
Certainly, we cannot opine that there is no risk of violation
based on the foregoing assumed facts.
Additionally, one must take care to avoid any ownership
interest in PMG mindful of the prohibition contained in DR
5-107 that a lawyer shall not engage in the practice of law for
profit if a non-lawyer owns any interest therein. Accordingly,
compensation for legal services rendered should be made on a
fee for service basis or other objective format, avoiding any
possible charge of joint ownership of the venture.

September 19, 1986
Page 3
.............................
It is also important that the confidentiality of

information developed during the course of the client
rtprssentatisn by your lax fir3 be held secret and confidentiai
in accordance with DR 4-101. Accordingly, disclosure of the
estate planning needs of clients should be done with the
express written consent of the client, particularly where a
charge may later be made by a disgruntled client that such
information was misutilized in order to induce the client to
purchase financial services products sold by FMG (on which FMG
may be entitled to commissions or fees). Moreover, to the
extent FMG earns such fees or commissions, full disclosure of
FMG's interest in the sale of such financial services products
should be made by the attorney pursuant to the attorney's
independent obligation to provide the client with competent
advice and a duty of loyal representation.
As you may sense, this brief reply to your inquiry
identifies only some of the ethical problems which may exist in
connection with the proposed structure.
It is not intended, by this letter, however, to
discourage such enterprises. To the contrary, it is believed
that, carefully structured, lawyers are free to participate in
such ventures. Should you require a more detailed opinion, we
request that you provide us with specific questions about
proposed courses of conduct so that we may be responsive to
them.
Should you have any questions concerning this preliminary
reply, please contact me. I remain
Sincerely,
pdh
Enclosure

September 19, 1986
Page 4
.............................
Caveat: Each person requesting an opinion from this Committee

must be informed that this not an official opinion of the
Disciplinary Board of the Supreme Court of Pennsylvania and
that any opinion rendered will be afforded only as much weight
as the reviewing authority may choose to give it.
November 2 1 ,
1986
M r . Stanley J. Caterbone
F i n a n c i a l Management G r o u p , L t d .
E d e n P a r k I1
1 7 5 5 Oregon P i k e
Lancaster. Pennsylvania
17601
Dear S t a n l e y ,
I r e c e i v e d your l e t t e r d a t e d O c t o b e r 29, 1986 w h i c h accompanied

t h e Compaq c o m p u t e r w i t h a v i d e o m o n i t o r .
I also received the
S o f t b r i d g e system.
I assume you i n t e n d t o k e e p t h e :
E p s o n m o d e l FX-286
HP l a s e r j e t
dot matrix printer
printer
2 4 0 0 b a u d H a y e s modem
DOS 3 . 1
9=s'L
( S e r i e s 300H) S b /
r7Yd
and C r o s s t a l k X V I
/'$6
I f t h e e q u i p m e n t and s o f t w a r e m e n t i o n e d a b o v e was t o b e i n c l u d e d
w i t h t h e p a c k a g e s y o u s e n t me, p l e a s e l e t me know i m m e d i a t e l y .
Sincerely,
4Jig,*-
R . B r a d f o r d Thomas
Vice President1
D i r e c t o r o f MIS
cc:
R o b e r t E . Kauffman
Steve Franklin
Advisory, Inc.
m m w m w
IN',.'
*"N"Gr*E*r
OID",.
Eden Park 11. 1755 Oregon Pike
Lancarter, PA 17601
717-569-4100
LID
PRESIDENT
December 31, 1986
Mr. Thomas TucKer

221 Lincoln Way East
Chambersburg, PA 17201
Dear Tom:
Attached are updated R.I.A.
Kits for your use.
Please
note that we amended the ADV to include Asset Monitoring
and also changed the client agreement to include Market
Timing. Please discard your previous kits.
If you have any questions or concerns, please call
Sincerely,
President
SJC: lmk
CC
Executive Vice-President
Stanley Caterbone
Acts as Marketing Officer, Supervision of Registered Investment
Advisor, Supervision of Computers and Word Processing,
Insurance Product Selecsion
1.
Manages all Advertising - Radio and Newspaper, Seminars

and Corporation promotion
2.
Manages computer and word processing, letter and proposal

generation, Insurance proposals, Software review, IFS System,
data input, hardware and software maintenance
3.
Manages Registered Investment Advisor, Compliance with NASD

laws for R.I.A., set up and maintain files and review plans
4.
Supervision of casewriters, coordination of efforts
5.
Supervises computer technician, oversees the above functions
6.
Advise on hardware acquisitions for all reps and train all

reps in the use of all network software
7.
Acts as Corporate secretary, keeps corporate minutes and

issues stock certificates
Jerry Ehvem, President

Registered R e p r e ~ n t a t i
"tnnovarton m ~ l n o n c ~ srralegres"
al
.
Bennington Financial Group, Inc.

21 South Fourth Smec
Levusburg. PA 17837
7 17-513-3118
January 5, 1987
Pcnsionr
dn , fkt
Financial Management Group, Inc

1755 Oregon Pike
Lancaster, Pa. 17601
heft
Ikfind Contribution
P d t Sharing
ATTENTION:
Kmuglis
Dear Stan:
IRA'S
STAN CATERBONE
I have received the programs that I wrote to you

about on November Zlst, and I want to thank you very much
for the quick service. 1.expect that they will be very
helpful. !
Auet Manngrment
I was wondering if there is a manual that explains

these programs and how to best utilize them. If such a
guide exists, I would very much appreciate receiving a
copy of it.
I also need instructions for loading the
programs on my computer. I have a Leading Edge computer
with a fixed disk, which is compatible with the IBM P.C.;
therefore,
I need to know the proper method to use to
install and run the programs on this type of system.
Oil & Gas
If you have any questions regarding the above,

please don't hesitate to give me a call.
Emphyrr &n&t
Plans .
I'm looking forward to hearing from you soon.
Employee Communicption
Booklets
Thank you for your help.
L n t e Planning
College Funding m
Charitabk Giving
Foun&tlonr
Securiticr Tmnsactions through ~ S C

Sccu;irics Corporation
*.~-~L~
.,A=..
A Rrgirrcmd BrokcrlD?lcr
''
1
2 .
K. L SHIRK, SR. (1915-1956)
NELM L SHIRK, JR
3CER S REIST
DAVID WAGENSELLER. Ill
KENELM L SHIRK. 111
ATTORNEYS A T LAW
P.0
WILLIAM J PELHAN
STEPHEN R GIBBLE
DORE C VALAVANES
SAMUEL M MECUM
BARBAM RElST DILLON
LANCASTER,
BOX 1 5 5 2
PENNSYLVANIA17603-1552
January 8, 1987
PRINCIPAL OFFICE
132 E. CHESTNUT STREET
AREA CODE 717
LANCASTER-394-7247
AKRON-859-1742
I N REPLY REFER TO:
C0127 WO2DV U M I l
Eden Park I1
1755 Oregon Pike
Lancaster PA 17601
Re:
Dr. and Mrs. Vlilliam Umiker
Dear Stan:
Hope you had a merry Christmas and a good start to your new
year.
Just wanted to let you know that the Umikers paid their bill
within a week,after it was sent. That made me feel better. Thanks
,
: so much for your guidance.
I had a thought before I close the file. Do the Umikers have
powers of attorney? They really should. Given that so many of their
assets are not jointly titled, the incompetency of either one of them
would create enough complications that the appointment of a guardian
would probably be necessary. On the other hand, they might rather go
to that expense at that time than have a power of attorney instrument
done at this point. They could limit the power of attorney to each
other, if that would make them feel better.
At this point in time, we are billing people an average of
about $1,000.00 for appointment of a guardian, as a hearinq is necessary. On the other hand, a power of attorney instrument costs about
$50.00 to $75.00, and so it is obvious why we advise people of its
wisdom.
I know that you are well familiar with the uses, advantages
and disadvantages of a power of attorney, so if you would like to
briefly discuss those concepts with the Umikers and get back to me,
please do so. If you do not feel it is necessary or you have discussed it previously, just let me know. If they wish to discuss it
with me, that is fine. The powers that are now available under the
OTHER OFFICES
EPHRATA, PENNSYLVANIA 17522-2014
717-733-2588
117-626-2404
4 0 2 SOUTH BROAD STREET

LITITZ. PENNSYLVANIA
17543-2602
717-626-2775
2 5 0 MAPLE AVENUE
QUARRWILLE. PENNSYLVANIA 17566-132C
717-786-1123
S t a n l e y J. C a t e r b o n e
~ x e c u t i v eV i c e P r e s i d e n t
January 8, 1987
P a g e Two
new l a w ( a b o u t two y e a r s o l d ) a r e b r o a d e r a n d t h e y may w a n t t o know

about t h a t .
Thank y o u .
Sincerely,
SHIRK, -3EIST, WAGENSELLER AND SHIRK
COMMONWEALTH OF PENNSYLVANIA
ROBERT M. IAM
Chairmin
I
DICKTHORNBURGH
Governor
FREDERICK H. PLANK
Commi~sioner
LORI HEISER
Commissioner
--
--
Pennsylvania Securities Commission

333 Market Street
Telephone: (717) 787-8061
January 13, 1987

Stanley J. Caterbone, President
F M G Advisory, Inc.
1755 Oregon Pike
Lancaster, PA 17601
ADVISER APPLICANT:
DATE OF FILING:
F M G Advisory, Inc., (FKU)

1755 a e g o n Pike
Lancaster, PA 17601
Septenher 25, 1986
Dear M r . Caterbone:
This w i l l a c b l e d g e receipt of your'sutmission on December 18. 1986, in

response t o our letter dated October 24, 1986. In this respect, before
f u r t h e r consideration can be given, it w i l l be n e c e s s a q t o provide the
following:
1. Effective date of Applicant's r e g i s t r a t i o n with t h e U.S.

Securities and Exchange Cemnission under Section 203 of the
Investmnt Advisers A c t of 1940.
2.
Reference is made t o t h e disclosure on Schedule F f o r 'Item 8(C)'

wherein it s t a t e s "A potential c o n f l i c t of interest rnsy arise
from t h e fact the Financial Management Group, Ltd., w h i c h ow^
a l l the outstanding stock of the Applicant, a l s o has an i n t e r e s t
in a f f i l i a t e d ~ a n p a n i e swhich o f f e r products m services similar
In this respect, p r w i d e
t o those t h a t might be r e c m n d e d . '
an opinion as t o why these ' a f f i l i a t e d canpanies" have not been
i d e n t i f i e d under question 8.C., Fonn ADV-Part 11. AmMd
Form ADV if appropriate.
3.
With reference t o Financial Management Group, Ltd. (-)

p r w i d e a detailed and mnprehensive description of the nature
and scope of EMGL's plan of business and t h e relationship, if
any, between this e n t i t y and t h e Applicant.
With respect t o Robert E. Kauffman and Michael M. H a r t l e t t , who
are individuals with control and l i s t e d as Vice R e s i d e n t and
Secretary, respectively, p r w i d e an opinion as t o why their
educational and business background has not been disclosed an
Schedule F under question 6, Form ADV-Part I f . .
4.
-.---.--
-'
1109 STATE OFFICE BUILDING. PHILADELPHIA. PA 19130-4088:Tele~hone215-560-20
3&1uuy.13, 1987
Page 2
5. With respect t o the f a c t t h a t Messrs Caterbone, Kauffman and

H a r t l e t t are registered representatives with FSC Securities
Corporation (FSC), p r w i d e an undertaking signed by an officer
of FSC, s t a t i n g that F5C has reviewed and has no objection t o
the follwing:
a.
The Applicant's plan of business, method of

operation, (including but not limited t o f e e
s t r u c t u r e ) as we11 as c o n f l i c t of interest disclosure, s e t forth i n Applicant's Form AW as
f i l e d with this agency;
b.
The tenns, conditions and disclosure s e t f o r t h i n

t h e Applicant's proposed investment advisory cont r a c t (s)/agree~r~=nt
(s); and
The inv&tment advisory a c t i v i t i e s of the above

namsd individuals, as disclosed in t h e Applicant's
Fonn AW, while registered as agents f o r FSC.
6: After review of t h e Schedule D f o r Michael Hartlett, it is noted
t h a t Mr. Hartlett is a planner f o r Financial Planning Consultants
(FFC), Lancaster, Pa. In this respect, p r w i d e a detailed
description bf FPC's plan of business to incl*
the duties and
r e s p o n s i b i l i t i e s of Michael Hartlett as a planner f o r that firm.
7. Fbrnish specimen w p i e s of a l l f o m of contracts and/or agreem t s t o be used by the Applicant f o r its investment adviser
c l i e n t s i n Pennsylvania.
8. Reference is m d e t o the disclosure cn Schedule F f o r
" I t e n 13(B)' wherein it indicates t h a t the Applicant w i l l &
cash payrents t o s o l i c i t o r s . I n this respect, amend Form ADVPart I1 in order t o p r w i d e an affirmative response t o question
13.B.
c.
..
In t h e event a canplete response t o the information requested above is not

received within t h i r t y (30) days frcxn receipt of this l e t t e r , t h e application
rnay be placed before t h e Ccmnission so that it m y consider issuing a Denial
f o r Abandonment Order pursuant t o Section 602.022 of the Pennsylvania
Securities A c t of 1972.
Paul M. Schwartz, ~ c t i n kDirector

~ i v i s i o nof Licensing
CERTIFIED W L
RETURN RECEIPT REQUESTED
Bob Kauffmn,
Mike M e t t , and
S t a n Caterbum
Frow: Qrolyn D Royer
As you Iomw, I have f u l l f i l l e d the initial step in my 1987 plan by obtahhg

my series #24 lisc. lherefore a t this time I feel I shcdd recap my g a d s as
W as the time table for the inP,lementation. I am basing much of the time
table on information that has am to liqht since I passed my test on m&y,
1/12/87, and as always Upaates and champs can be expsct&.
Pr*
Goal: lb E?e m
i
n
t
e
d President of FIG Emker/D=aler
Secondary Goal: To Continue To

SupplanerM Perscolal Earnings.
In The Year 1987.
Fursue A Firm Client Base An3 -te
I reaffirm my primary goal w i t h the

that the firns desire a t the
present time is that I work on my prsmal production and pit the B/D
Presidency cn hold until such time as I am notified by the firm that this goal
f i t s the corporation goals and objectives.
In the
I w i l l continue to familiarize myself w i t h any detail w h i c h may
aid the hplementation of the B/D while taking no direct responsibility for B/D
pmcessing or hpleinmtaticn.
I k w l d like to continue in the licensing of the Series 114, the Reg. wens
Principal and am requesting that the firm pay for the ticket sim3y mterial and
thecranlc~xlrse~.
I feel that my request for remmemtion was f a i r tut feel that an alternative
would be to eliminate the base salary and increase the over ride to a lwel of
3% for a t least the f i r s t year of operation. This is just a mggesticn and of
c u r s e muld have to be discussed in more detail.
I muld
stress my camnitment to this goal is for the betterment of the

corporation as a whole, while a t the same time, this amnnitment will give me
great perscnal satisfaction.
sincerely m t t e d ,
Carolyn D Royer
P.O. BOX 601 1
ROCKV'
MD 20850
(301) 738.6500
j/\Y 13 E ~ J
CANDIDATE QUALIFICATION EXAMINATION SCORE REPORT

CANDIDATE:
CRD #
ROYER, CAROLYN DELLER
1092979
SSN:
184-36-7730
DATE:
1/15/87
I
The above named candidate has taken an examination administered by the NASD through the facilities of
the Control Data Corporation
Plato System. The performance of the candidate is shown below:
..
. , .
"
TEST:
GENERAL
. . . SECUR
EXAM DATE:
1/12/87
IPAL EXICMINATION
.
CORE:
SERIES:
24
845
GRADE:
PASS
The following table contains an analysis of the candidate's performance in each of the major sections
of the exa
s indicated by the percentage of questions in each
j
Percent corr
failed and wishes to retake this examination should

complete page one of Form U-4 and return it to the CRD, P.O.Box 6011, Rockville, MD 20850. A $50.00
examination fe
. .
BROKER DEALER #
7461
FSC SECURITIES CORPORATION

250 PIEDMONT AVE NE STE 1900
ATLANTA, GA 30365
ATTN:
DENISE M. PROPES
Institutional Investors of America, Inc.

Financing.Investments & Advisors
iUlan D. Dannsli
Managing General Parhler
January 20, 1987

HONORARY CHAIRMAN
Gm.s. Moon
,)
CHAIRLLINoFrnEmARD
*
a d w. I-h
Mr. Stan Caterbone

Financial Management Group
1775 Oreqon Pipe
DIRECTORS
~~~~~.~
~
k.
v*. P&n(
k t x hB=+.NYC
C u U
Fo-.
ur. A
*.
oyimy.
I..
CAYIW I-. co.

F~-u.s. hrnbnvdca
40
Re:
Mortgage Loans
Commercial and Residential
Dear Stan:
&
"
.
.
"
A
Chi,"""
An- W..'"I
C*.
rO u i r m a n norpied
C-nth
d Arrri.
In reference to the above captioned subject, enclosed

please find a synopsis of our lending programs. We
are very interested in business in your part of the
Country. I will also be in a position to do some
other business with you through the bank we just
purchased in 60-90 days.
Very truly yours,
Allan D. Dannatt
President
ADD/slh
Enclosure
777 North Eldridge Parkway. Suite 730
Houston. Texas 77079
LOAN HIFTFOLJO
aJFEimRA!iE~vrms
ma
10 yrs.
Variable
5 yrs.
7 yrs.
Fixed
Fixed
&
e
225 bp wer
03F o r 300 bp
wer 1 yr T- ill
Pay R a t e
Fee
Amortization
Stating
1-2 pts.
30 Y e a r s
1-2 pts.
1 3/4 pts.
30 Y e a r s
30 Y e a r s
@ 9%
9.5%
9.65%
Fived Rates a l s o available a t 325 basis pints wer c
o T-Bill
Retail, O f f i c e , Industrial
10 yrs.
Variable
5-7 yrs.
Fixed
Fixed
1oyrs.
300-350 bp wer
1 yr. T-Bill o r
250 bp wer 03F
1-2 pts.
30 Y e a r s
8.75%
9%
Par-1 pt.
Par-1 pt.
30 Y e a r s
30 Y e a r s
Similar terns available f o r m i n i wx&mses,

homes and ACLF f a c i l i t i e s .
Forwarrl,
available.
q,
open-ended
hotels, mobile home parks, nursing
and covered construction

Maxmm loan to value of 809.
loans are also
W e are a r n m t l y seeking t o plrchase $500 million in

Sale Leasebacks
p r q e r t i e s nationwide leased to nationally listed public corporations w i t h good
credit ratings. Leases r r p ~ s tbe NNN with a minimJm of a 10 year tenn. Mininnnn
cash h
t
$5-$500111.
REMICS
Beginning in the 2nd W X t e r of 1987, I I A will be placing $100 million
a m n t h into real estate investment mortgage conduits. Innn&iate urdbg lcans
w i l l be made on all types of I n s t i t u t i o n a l quality property.
Fates quoted are test available and m y vary depending on location and quality
I
of product.
Planning Consultants
Oregon Pike Lamaster, PA 17601 717-569-1100
ROBERT E. KAUFFMAN
PRESIDENT
January 20, 1987
Hibbard Brown & Co., Inc.

7855 Walker Drive
Suite 6 2 0
Greenbelt, Maryland 20770
Dear Pete:
I have discussed our visits with the other two partners and the
initial reactions have been favorable. I am going to give you my
interpretations of our meeting along with some minor changes my
partners would like to see. Hope to hear from you soon.
A.
Payout
We would like to work with a financially sound entity and would
like to cap our payout at 90 percent on all products with a
pass-through of the ticket charge from SSC to HB Inc.
We would like it understood that no other firms be offered a
higher payout. We would further request that we receive a 2
percent overwriting on all shops we bring directly to HE Inc.
as oppossed to becoming a part of FMG. If these independent
"shops" are at less than 90 percent payout, we would like an
additional 1 percent for every 5 percent under 90 percent these
shops are being paid.
0.
Territory
It would be our understanding that we could veto any hires in
the state of PA and that we would need to approve all direct
contracts (outside FMG) in that state. It is further understood
that at any time FMG may solicit other HE Inc. shops in PA to
come under our contract/services.
Securities Transactions thmugh FSC Securities Corporati-n

A Registered BmkerIDtaler
Member NASD
Member SIPC
c.
Stock
-
i s to receive a 20 percent interest i n HB Inc. a s recognition

of its production to the bottom line equity value of HB Inc.
10 percent based upon a preThis number may be adjusted
determined production schedule over the next five years.
FMG
Prod in Mil
--t
7
-
o+
10%
6- 20
- 3 3 0
30
10%
10
20
30
Full Years
F M G i s to receive credit for direct volume a s well a s for volume
where a 2+percent overwriting i s generated for referring independent shops.
FMG
D.
i s to receive the stock at n o charge.
Divorce Planning
1.
Should F M G volume drop below two million in volume, HB Inc.

would have the right to sever relations from F M G and buy back
stock earned at book value.
2.
Should F M G leave HB Inc. any time within five years (unless

sale o f HE Inc. occurs sooner), F M G rould also leave with
HB Inc. any equity attributed to i t s o w n business. F M G
would retain both equity and overwriting on direct relationships
they referred t o HE Inc.
Example:
3.
leaves producing 4 million after 4 years

Referred shops produce 2 million
FMG
a.
FMG
retains 1/3 o f 10 percent share or 3.3 percent o f stock
b.
FMG
retains 2 percent overwriting o n 2 million or $40,000
If our relationship survives five years, we would set the

earned equity percentage attained and reconfirm other
agreements.
MINUTES OF THE 1/26/87 MEETING OF

THE BOARD OF DIRECTORS
The
Board
of
Directors
meeting
Oregon Pike, Lancaster, Pennsylvania

January, 1987.
PRESENT :
Robert E. Kauffman
on
was
the
held
26th
at
day
1755
of
Michael M. Hartlett
constituting a quorum of the Board.
The Meeting was called to session and minutes recorded
by Stanley J. Caterbone.
TOPICS DISCUSSED
Review.of the Business Plan
Weaknesses:
a. Specialists
b. RIA Fees
c. Improve client services
d. Organize marketing
e. Profitability
The Board of Directors should be expanded to five
(5) persons. This was agreed upon unanimously and the followi~g
persons were nominated:
a. P. Alan Loss
b. Robert Long Jr.
c. Peter Poneros
d. Richard Braverman
e. Carolyn Royer
f. Kenneth Ray
g. Scott Robertson
h. Harry Radcliffe
I t was agreed upon that the election of t h e additional
Board
of
Directors
at 4:00 p.m.
would
take
place
on
February
This would involve a one ( 1 ) year term.
The Meeting was adjourned.
4,
1987
Qxative Finance Campany

P.O. Box 4412
Lancaster. PA 17604
Hi* Ascciates, LTD.

Tom Kyle
1861 William Pem Way

Iaraster, PA 17601
February 3, 1987
Dear Tom:
,l
As per your recent mane conversation w i t h Bob brig, I would like to give
you scane information reganiing cur lenling ability. I have been selected to
represent a group of Institutiondl Investors that are htemsb3 in projects in
the Eastern part of the acRmtry. We are able to finance projects ranging in
s i z e of $3 t o $100 million.
hrojeds include aparbe&s,
retail, office,
hdwtrial,
health care f a c i l i t i e s , mabile hare parks, hotels and mini
warehouses.
Underwriting can be very f a s t and can often times be approved in
14
days froan time of application.
follow^ is list of underwriting
r q h x m m t s ; pro forma, rent r o l l , financial statemnts, resume of borrower,
and s c a n e under
~
certain c a d i t i o n s an MAI Wraisal. For new a m s t n ~ c t i o n
a sales agreement and cost brealcdowns are r q u i r d .
a copy of our portfolio. I hope that w e on do h i n e s s
provide
ycmr financing for your next: project, o r possibly prwide
together and
a r e f h n c i q package f o r ycur existing portfolio.
I appreciate the
opportunity to work w i t h you.
~slclosed is
W e may be reached a t the following nlrmber; (717) 569-5555
TO: BaARD OF D l X C l D E
FINANCJAL IGmGmm GEmP,
Em.
RE: WKER DEALER WWGER

A t this time I feel it is appropriate t o preserrt the Boazd of Directors w i t h an
qdate & reiteration of my godl to
the Broker DBaler Branch of F h c i a l
Management
c;ruop, m.
As i n i t i a l l y stated in my meim dated 12/30/86 & presented to the Principals a t

FMG, I would like to pusue establishing a strang, organized locdl situation to
clear our c u r r a t brokerage b u s h e s .
. I \
I u n d ~ t h a t a l e t o m a n y c h a n g e s i n t h e l a s t ~(FMG)
w mybe
cbngirq our a x r s e fran the plrsuit of an FMG broker dealer.
For that reason I would like to point ak t h a t we have invested a good deal of
mney i n the ADP system. It i s currently able t o allm u s direct order entry.
A t this time scumne needs to organize a system so that we can begin to u t i l i z e
this f e a h r e .
mst
of ycu knm that I was responsible f o r the inplementation of the BTS & DNS
us a-t
retrieval & order entry. I q l e t e d t h i s task
w i t h i n the nnnth of J m , while a t the same time obtauung my series #24
license. I would like the opportunity to amtinue in the direction of
hplemsnting the f u l l services we have a t our dispmal t h r a q h ADP.
system w h i c h all-
..
For the corporate good I feel the direction we w i l l plrsue in the area of the
Broker Dealer should be established by the E ! c a d of Directors.
If this dkection is to continue and/or to plrsue a strang aperation here a t

Financial Mmagemxtt Group I am requesting that I be considered for this
position.
'Ihank Y o u for your time and consideration.
sincerely Sukmitted,
Carolyn D Royer
MINUTES OF THE 2 / 1 0 / 8 7 MEETING OF

The Board of Directors meeting was held at 1755

Oregon Pike, Lancaster, Pennsylvania on the 10th day of
February, 1 9 8 7 , at 4:25 p.m.
PRESENT:
Robert E. Kauffman
Michael M. Hartlett
Robert Long, Jr.
P. Alan Loss
The Meeting was called to session by Michael Hartlett
and minutes recorded by Stanley Caterbone.
TOPICS DISCUSSED
Robert Kauffman asked for input regarding his letter
to Carolyn Royer.
The Board unanimously suggested that
the said letter be rewritten with more positive style and
softer tones.
The letter to Lynn Wood regarding the securities
problems was addressed and the following issues are to be
resolved by FSC:
a. direct entries
b. wireless mutual fund transactions
c. increased payout to our group
1. 8 0 % as of 1 / 1 / 8 7
2. 9 0 % in the future
1
The topic of the purpose of the visit from Don Aultman

and Steve Franklin was discussed:
a. inform Robert Kauffman of his release from FSC
contract
b. make Robert Kauffman an offer for a position
with FSC
The financial position of company was discussed
and it was recognized that revenues are lagging by as much
as eight (8) weeks.
The company is operating at a deficit
and the following solutions were mentioned:
a. Hire additional, better qualified people
b. Negotiate better margins
c. Use new product
1. local syndication
2. insurance contracts
Broker Dealer subject was discussed
a. Hibbard Brown offer was looked at and we decided
t? persue in more detail.
b. The deal with
Integrated Recourses was not
looked upon as being a possible alternative.
Robert R. Long adjourned the meeting at 6:30 p.m.
until February 11, 1987 at 4:00 p.m. to continue to discuss
the offer by Hibbard and Brown.
COLUbBIA ASSET MANAGEMENT CORP.

IXVESTbENT BANKERS
TWINING OFFICE CENTER

715 TWINING ROAD SUITE 116
DRESHER. PA 19025
Scott Rabertson
1755 Oregon P i k e
Lancaster , P A 17601
February 1 0 1987
Dear Scott :
Enclosed i s a vrrite up o n the prcxperty w e discussed.
The owner desires to refinance for a minimum of
$2,500,000 o n a non-recourse assumable basis.
It i s
understood that the enclosure is ta b e forwarded to a
private investor in Texas and is not to b e shown to
anyone else.
I f this is handled to our satisfaction, I would b e

pleased to submit additional properties for your clients
cc-nsideratinn.
Leonard M. Shendell

The Board of Directors meeting was continued at 1755

Oregon Pike, Lancaster, Pennsylvania on the 11th day of
February, 1987 from the previous Board Meeting held on
the 10th day of February, 1987. Meeting held at 3:40 p.m.
PRESENT:
Robert E. Kauffman
Michael M. Hartlett
Robert Long, Jr.
P. Alan Loss
I
TOPICS DISCUSSED
Mr. Peter Hibbard was present regarding a merger with
Hibbard Brown.
After four (4) months of considerations,
we are interested in persuing a relationship
a. Due Delligence: Department is growing and
they
do attempt to screen and filter only sound products.
1. Syndication 46M will help us syndicate
b. Product:
All funds will wire order minimum 5,000
c. Custodian Accounts
1. State Street, Recourses Trust, Delaware
d. Variable Annuity -Most of ours
Our Want .List:
a. Wire order materials
b. Naked options, straddles, etc.
c. Revise forms
d. No forms charges
e. Ticket charges pass through
Mr. Peter Hillard gave a brief history of B/D

At present there are sixty ( 6 0 ) representatives, intentions
of adding forty (401 in the next three (3) months.
$10 million by year end
The Board approved the loan of $10,000 to Gail Turner
for the start up costs of her office.
The
5:30 p.m.
Meeting
was
adjourned
by
Robert
E.
Kauffman
at
February 1 3 , 1987
Stanley 3. Caterbone
1 7 5 5 Oregon Pike
Lancaster, PA 17601
Re:
Carter Manor Associates
Dear Stan:
Enclosed is a Loan Request for Carter Manor Associates for the
Refinancing of two particular properties that it currently owns
and we would appreciate you consideration of this matter. Please
note that the terms in the Loan Request are negotiable.
If you have any questions, please do not hesitate to contact me.
Sincerely,
Enclosure
REAL ESTATE DEVELOPMENT I BUSINESS ACOUISITIONS

)
1681 Crown Avenue 1 PO Box 8200 i Lancasler PA 17604 11717) 395-7100
,>.
'
BARRY L . SCHUTTLER and ASSOCIATES

5501 TWIN KNOLLS ROAD SUITE 101 COLUMBIA, MARYLAND 2104
BALTIMORE 995-4084
WASHINGTON 621-566
COLUMBIA 992-3446
February 13, 1987
Again my apologies!
I can place the order for you for the tabs if

you are having problems locating a reasonable
price on ther?. What you may want to do, if
you plan on ?reducing Plans immediately, i s
to take some of ours and we will replenish when
your order is completed.
Feel free to call should you have additional
questions.
SECURITIES OFFERED T H R O U G H FSC SECURITIES CORPORATION

A REGISTERED BROKER DEALER
MEMBER NASD/SIPC
Meet the Specialists

in Helping You Prepare for
Your Financial Independence.
M E R T L KAUrrYW
ICNLLWWLEll.CFV
E.MMVr.-
STANLEY J. C A m E
EnanhrnRrM
P. A U N U s
bmdFM*vl",n*
ROBERT R UYIO. JR.

Spsllll*
The Finincia1 Management Group Specialists are experienced

professionals with the knowledge and resources available in ONE
- - .Maximize your wealth

.Minimize your taxes
-Improve your investment
coordinate your personal and
business financial planning
A. Tax Planning & Prepamtion B. Financial Planning

C. Estate Planning
D. Retirement Planning
IRA'S, KEOGH'S
E. Investment Analysis. Implementation & Management
F. Insurance Analysis, Planning & Implementation
G. Legal Services
H. Real Estate Services
A B C D E F G H
A
..
-.."a.--
"I.*
Eden Park 11,1755 O w o n P l b

L d n ~ s l e rPA
, 17601
F~mncialManagement Group, L~,-J

1755 Oregon Pike
(717) 569-4100
(800) 322.1 128
S.CurIt&s ~ r i n ~ c r k mthrough
s
FSC SIKYrll~esC ~ N ~ ~ I O ~
A Rsgbtemd Bmkbr/Cmaler
Mmnbar NASD
Member SIPC
COMMONWEALTH OF PENNSYWANIA
ROBERT P. CASEY
ROBERT M. LAM
ch.innan
Governor
FREDERICK H. PUNK
Commissioner
NANCY L. DIANA
secrasry
EUOTT KLElN
Chid Car-
Pennsylvania Securltler Commluion

333 Market Street
Harrlrburg, PA 17101-2209
Telephone: (717) 7876061
S t a d e y J. Giterhme, President
1755 OrPike
Lancaster, PA 17601
IWESBENT AWISER APPLICANT:
P M G Advisory, Inc. (=)

1755 OrPike
Lancaster, PA 17601
Dear M r . Caterme:
This w i l l ackno#ledge receipt of yam subnission on February 20, 1987. In this
respect, before further consideration can be givm, it w i l l be necessary to provide
the follauiq:
)
h
1. Attached is a ccpy of a letter dated October 24, 1986 wherein w e requested

rtain infornation w i t h r e s p e d to Fm;'s application. To date, question 18 of
our October 24, 1986 l e t t e r has not been answered. I n this respct, furnish a
of those permns who will provide investmnt advice in FWuqlvania to
nclude, i f not previously filed, a ccropletd Schedule D of Fonn AW for each
such individual. This infornation is requested with reference to yan
affimmtive r e s p m e to question 17.A.(4), Form AW-Part I wherein you indicate
Em; enploys "10 or m x e persons" w l n p e r m i n w s t m n t &vimry fmctions.
&
2.
Reference i s nade to y a ~ rrespnse to qmstion 1.A.. Form ALYV-Part 11. The

responses, as presented, accamt for only 80%of m's Mal advisory billings.
W r d Form AW to -de
d i s c l e u r e as to &at -titutes
the r-iniq
20%.
3.
W i t h reference
4.
An affirmative respome to question 2.G.. Porn AW-Part 11 requires disclosure

on s&edule F. A m r d Schedule F accordimly.
to your affirnative response to q u e s t b 1.A. (8). Form AW-Part

I1 an3 the required disclosure on Shedule F, it appears that the information,
as presented, dces not povide a descripticn of the timing services of FMG. . .
W d Schedule F to include a description as required. The description s b l d
include, a t a mininum, any fees M d . 1 are d-arged to the c l i e n t w i t h respect to
timing, i.e., a witchiq fee.
"\
OFFICES
1109 STATE OFFICE BUILDING, PHILADELPHIA. PA 191304088; Telephone 215-56C-205

806 STATE OFFICE BUILDING. PITTSBURGH. PA 15222-1210; Telephone 412-565-5003
F M G Pdvisory, Inc.
February 24, 1987
pase 2
5.
%ference i s made to question 12, Pbrm AW-Rut 11. In this respect, the
follcuirq i s requested:
a.
With reference to Section I1 of FM;'s "CLPXT AGREFMWT" wherein it states,

"'Ihe client m y authorize FM; Pdvisary, Inc. to i n i t i a t e wit*
of
imrestmnts between W s .
as to why this
to question 12.A.,
information build not require an
R., C., o r D, Porm AIN-Part 11.
. .-,
b.
With reference to yw affirmative r e s p n s b ~ & e s t i m12.B.. Fonn AWPart 11, it is noted that Medule F states, "Clients are under m
obligation to plrchase or s e l l seclurities thrmgh FSC Securities mrp.,
Mw,
i f FSC Securities Corporation executes any transactions, fees
already paid to the applicant." Inasnu& as t h i s statement does not appear
to be q l e t e , amnd Schedule F in order to provide ccrrplete disclosure as
to what m y happen to "fees already paid to the applicant".
C
An affirmative response to question 13.A.. mrm AW-Part I1 requires disclosure

Amenil Schedule F accordingly.
-
on Schedule F.
After review of the Shedule D for Mid-ael M. Flartlett, the follcwhq

discrepancies are noted:
a.
Schedule D reflects M r . H a r t l e t t w i l l becane a CFP in 3/87.
b.
Item 6 on Schedule F reflects Mr. Hartlett received his Certified Financial

Planner designation in the eprirg of 1985.
c.
Schedule D reflects Mr. Hartlett is a vice president of PMG Advisory, Inc.
d.
I t e m 6 on Schedule F reflects "Mr. H a r t l e t t w i l l serve as secretary of FMG

Pdvisory, Inc.
In view of the abwe, it w i l l be necessary to amend the appropriate docments in

order to reflect accurate and consistent inform?itim.
8.
Attached i s a aipy of our l e t t e r dated January 13, 1987 wherein we reqwsted

additional information with respect to m's ~ p l i c a t i m . As of this date, a
response to the follaving questions hks not keen received:
a.
vherein we requested an a p M m as to why certain "affiliated

mnpanies" had not been identified under question R.C., Form AW-Part 11.
(X1estirn 2
W i t h respect to PMG's "CLIISNT -",
it is noted that page 2 states, " I t is

undentccd that representatives of
M s o r y , Inc., mC Securities mrporation or other affiliated c a p n i e s , including the abwe-Mmed representative,
w i l l receive a share of that anmission, in addition to the abwe intrduction
fee." In this respect, it i s the opinion of staff that these affiliated
ccrrpanies should be nisclosed under R.C., Form AW-Part 11.
February 24, 1987
page 3
b.
m e s t i o n 3, wherein we requested informtion on Financial MaMgement Grmp,

Ltd. (m).In this respect, it is noted that ymr response on February
20, 1987 states,
Financial MaMgem?nt Graap, Ltd. i s a canpany prwidiw
financial services to individuals and small business. Financial
M n a g a e n t Group, Ltd. ams a l l of the cutstam%ng stock of Fm;
Advisory, Inc. Financial M a n a g m t Grmp, Ltd. pmvides
insurance an3 securities products to its clients a d is a x r e n t l y
using I332 Securities as its registered broker-dealer.
I n addition to prwidiq securities products t o its clients, it is noted
that the Shedule Ds f o r Messrs. C a t e r h e , K a u f m , and Hartlett r e f l e c t
under question #6, BUSINESS BAQ(-,
that FM;L i s a "financial plannirq"
firm. I n vied o the above information, provide an ophim as t o v h y F?GL
i s not registered under the Pennsylvania S e a x i t i e s A c t of 1972.
c.
Question 6, requested information w i t h respect to Financial Planning

Consultants (FPC), Lancaster, PA. Inasrmch as PPC i s referenced on M r .
FhrUett's Schedule D, as subnitted on Deenker 18, 1986, ard on Schedule
F, a s sulmitted on Febmiry 20, 1987, urder i t e m 6 (Michael Miles
H a r t l e t t ) , BIlSINESS BA(XGJDU?lD, it i s requested that Mr. Hartlett provide,
v i a *m;, a detailed description of F'FC's plan of tusiness to include the
duties ard responsibilities of Michael Hartlett as a p l m r for t h a t firm.
NOE: Men a m d i n g Form A W , cmplete all mded pages i n full ard circle the
mnker of t h e i t e m being amended. Each amedmentmst include an emcution
page w i t h an original m a l s i g n a h r e and Mtarization.
f l w l d ycu need any additional infornation and/or c l a r i f i c a t i o n , please feel free t c
call m direct a t (717) 787-5675.
I n the event a mnplete response to the infoma*
requested abcnre i s not received
w i t h i n s i x t y days fran receipt of this letter, the application m y be placed before
the C a n & & . oso
n t h a t it nay consider issuing a Denial f o r M o r m n t O r d e r
pursuant to Section 602.022 of the Pennsylvania Securities A c t of 1972.
Very t r u l y yaas,
Paul M. S d u a r t ~ ,A
Division of Licensing
(3ERTIFIED MAIL
m
r
w RECEIPT R m I E S l m
Director
FBI Pro.bes Kugel

Contracts with
N.Carolina Cities
Several Towns Unhappy with Delays;
Kugel Says He'll Fulfill Pacts
Lancasler developer
Owen Kugel, whose rev~taliration succea in domtom
lancaster helpcd him land

%imilsr confram in at least
seven states, is bein inverti.
Bald by, t k , ~ e d e r a fBureau
Of Investlgatron for downtown
revitalization pro'eets in
North Carolina. FBf omcia;
sav.
Robert Pence, in charge
OrNorth Carolina FBI opera.
tiotb. said (he investiflahen
centers on whether Kugel's
OK Assmiales firm based
here is involved in -mail
fraud, wire fraud or any other
typeofrraud.,,
lle added thal Ule use of
interstate racilities, as well as
the use of funds in interstate
eom,yeree,wouldbr studied.
I can confirm that we
are looking into the matter to

determine if an federal laws
have been vioited:. added.
Daniel Womiak, a senior FRI

agent a t Ute bureau's GWM.
boro. N.C.. omce today.
omcials in a t least flve
North Camlina cities sa
they.re dissatisilied w i d
Kugel's prfarmanee on the
contracis and each has asked
him to returnhis w,mfee.
Kugel this mornin& tm
the New Era that he has been
aware of the investigation for
several w e d s and that he is
y p e r a t i n g with authorities
100 percent, in the interest
of &etttg It wrapped up
quie ly
"We know" the outcome
"can on1 be successful from
our standipo' ~nt."he said.
Kuge s a d he did not
know how the FBI got in.

volved in the situation. EX.
Plainin the contracts, he
said i f
d w t ( foum
thmugh on contract pmmis.
es. '.we give the money
back."
On the advice of dis attnr.
W .Alvin B. Lewis Jr.
Kugel wwld not discuss thd
status of the develo
Pro*
underway in
Carolina.
?%h'
Pence said the investiga.

t i ~ began
l
about M days ago.
But Kugel's former vice pres]dent. who arranged the
North Carolina contracts and
OWEN KUGEL
39 NORTH MARKET STREET
LANCASTER PA 17603
717-299-4371
2 M a r c h 1987
To:
S t a n l e y J. Caterbone
President
FMG A d v i s o r y , I n c .
E d e n P a r k II
1755 O r e g o n P i k e
Lancaster, - PA 17601
717-569-41 00
From :
Owen K u g e l
Subject:
M o r t g a g e Financing.
T h i s follows up o n o u r 17 F e b r u a r y meeting a b o u t 112ortgage

Financing f o r o u r upcoming development projects.
I h a v e selected a g r o u p o f 11 p r o j e c t s f o r w h i c h we h a v e completed
pre-development w o r k a n d w h i c h a r e r e a d y f o r d e b t placement;
a n d a t t a c h e d t h e c u r r e n t financial p r o j e c t i o n s o n each.
1 h a v e assumed a 65/35 D e b t l E q u i t y s p l i t , a 9.00% r a t e o f
interest, a 30 y e a r term, a n d a o n e p o i n t o r i g i n a t i o n fee. Note
t h a t t h e L o a n t v a l u e u s i n g a 9 " s a p R a t e averages 56.54%.
Note also t h a t 1 h a v e i n c l u d e d a 2.50% D e b t Placement Fee f o r
y o u r e f f o r t s in p l a c i n g t h i s debt; w h i c h w o u l d t o t a l $433,592
f o r t h e package.
L e t me k n o w if t h e r e i s i n t e r e s t and, if so, what a d d i t i o n a l
information y o u w i l l need.
Regards,
msrlattachments
'
'
.
.
I--
In
u-
n DrDw
newsletter
MARCH 24,1987
6 Month
1 Year
2 Year
3 Year
4 Year
5 Year
7 Year
10 Year
Other 0 ' s Available

10 Year Zero Csupon $500
olll Mark if interested.
4/l/97
Yeild 7.90%
l&u~C. T. -,
ex-divisional m g e r of ID6/AM E 'lamjest office,
has joined F K . Tan w i l l be developing an office in MN/St. Paul as
well as d t i n g nationdlly for m.
Barry Schuttler and Bob Kauffman are intexviewhg and p r e p r j n g to
bagin an -type
office in l?X@s% area. W e plan to raise mney
in the same manner as in PA and use the same basi~marketing~lan.
Thmas Asselin of Cleanvataer, Florida has joined FIG.

with me in Florida and was a tap p
w a t ICE, and FSC.
Tcan mrked
As of early today, he reahed a negvtiated accord with n i k k m d - a

of Wash. D.C. to be an: new b-er.
We w i l l finalize our
agreement x + b a we have final contracts and have ampleted our due
diligence on their amp2ury.
Please keep an: offices as dean and neat as pcesible, it says the
right things to cur clients.
m
Qooked Oak Rmmacy, Inc.

is a soall d
t
y dnag store with
prsonal service.
Prescription piclaq .and delivery service to our
office is available for ycur wnvience. Also those who are in a
hurry and tiant wmethirg different they have delicia sandwiches by
Kelly's Deli.
They are lccated just a short distance f m our
office in Qwlced OakVillage. Store h m are 9 to 6 weekdays and
9 to 1 on Saturday. mir @one mm$er is 560-1710.
MINUTES O F THE 3 / 2 6 / 8 7 MEETING OF

The Board
of
Directors
m e e t i n g was
Pike,
Lancaster,
Pennsylvania
on
the
1987.
The M e e t i n g was h e l d a t 1 1 : 2 5 a . m .
held a t
26th
day
1755 Oregon
of
March,
PRESENT :
R o b e r t Kauffman
R o b e r t Long
P.
A l a n Loss
Michael H a r t l e t t
Stanley Caterbone
c o n s t i t u t i n g a quorum o f t h e B o a r d .
TOPICS DISCUSSED
H i b b a r d Brown P r o p o s a l
A.
Agreement now s a t i s f a c t o r y
1.
20% o f H i b b a r d Brown
2.
Loan:
3.
E x c l u s i v e t o s t a t e o f PA
4.
A l l o v e r r i d e s a r e u n d e r FMG
5.
Perpetual override f o r r e p s introduced outside
Stock
1 8 Months f o r $ 2 5 , 0 0 0
o f FMG t h a t g o d i r e c t .
Board o f D i r e c t o r s M e e t i n g s
A.
Have a m e e t i n g e v e r y f o u r t h week
B.
F o l l o w i n g Dates:
April
16,
1987
8:00
a.m.
at
the
office
of
Jeff
Jamouneau, o u r C o r p o r a t e A t t o r n e y .
1.
Purpose
May 5 , 1987
to
d i s c u s s r e s t r u c t u r e of
8:00 a . m .
J u n e 2 , 1 9 8 7 8 : 0 0 a.m.
orgar~izatiorl
a.m.
a t Dempsey's
t o 10:OO a.m.
a t Dempsey's
t o 1O:OO
C.
Agree t o b r i n g
J e r r y Bavero
Tom T u c k e r
Satellites
to
Board
Keetings:
Richard Podlasek
R i c h a r d Volpe
The M e e t i n g was a d j o u r n e d by R o b e r t Long a t 12:45 p.m.
FlNANClAL SERVICE
CORPORATION
ATLANTA CENTER
250 PIEDMONT AVENUE N.E.. SUITE 2100
ATLANTA. GEORGIA 30365
I100 521-6500
K 3 i N 8. KEEBLE
PREYCXNT
March 26. 1987
Mr. Robert E. Kauffman

1755 Oregon Pike
Lancaster. PA 17601
Dear Bob :
Steve Franklin, Don Aultman, and others have brought to my attention their
recent correspondence and conversations with you concerning your present
status, and that of others. vith our Company.
I
Your recent letter stating that you propose to attempt to transfer the
licenses of some of our representatives to Bibbard Brown, Inc.. possibly as
soon as April 1, 1987. prompts me to vrite this letter to you. on a very
urgent basis.
During the period from early 1985 until January 31. 1987. you vere an officer
of FSC Securities. Up until October 1986 you vere Senior Vice President of
Financial Service Corporation. For this entire period you vere paid a
substantial salary and expenses. Also during this period you vere a
registered representative, the last four months serving as an MFA in Lancaster
(vhile being paid as an officer of FSC Securities Corporation). This dual
relationship called for an unusual amount of trust in you on the part of FSC,
as our letter agreement of October 7. 1986, stated.
Your contractual and fiduciary obligations to us in these capacities include
the following:
1.
You oved and owe FSC and FSC Securities Corporation a strong duty of
fidelity vhich vould prohibit your solicitation or enticement of
their employees and representatives to become employees or
representatives of some other brokerldealer or employer in
competition with FSC.
2.
Your Employment Agreement vith the Company specifically provides

that you would not engage the services of any of our representatives
into any other brokerldealer without giving us 90 days notice (the
purpose of which obviously vould be to allow us to talk with these
representatives).
I I;iI
I
Mr. Robert E. Kauffman

March 26, 1987
Page 2
3.
Said employment also specifically provides that no such change

should be made with respect to representatives outside the Lancaster
MFA, for a period lasting through September 30, 1989, or two years
following termination of your employment.
4. During this time, as an employee of the company, you owed FSC a

strong duty not to solicit other FSC HFAs into your Lancaster MFA in
order to join your program with a competitive brokerldealer.
5.
Your duties to FSC included an obligation not to accept an extension

of your salary while in Lancaster after you had begun to solicit our
representatives to leave FSC.
We expect to hold you strictly accountable for these obligations, through

legal action if necessary.
Meanwhile, we plan to continue talking to our representatives currently under
contract, whose relationships with us we value highly. Whatever decisions
they may be in the process of making, should be made on the basis of all the
facts so that careers are not unfairly prejudiced. At the same time, we would
welcome an orderly and businesslike termination process in your case, and
others who may choose to join you, leaving all to engage in competition,
fairly and in good faith.
We hope that, after studying this letter carefully, you vill not proceed
rashly.
We need to know from you before April 1st whether we can disengage without
further hostility on your part, or whether we will be compelled to take legal
I
act ion.
-
Yours sincerely,
/ ~ o h n B. Keeble
FINANCIAL SERVICE
CORPORATION
ATLANTA CENTER
2 5 0 P I E D M O N T A V E N U E N . E . SUITE 2 1 0 0
ATLANTA. GEORGIA 3 0 3 6 5
I4Wl 5 2 1 - 6 5 0 0
March 26, 1987
To Associates of t h e L a n c a s t e r MFA
We have become aware d u r i n g t h e p a s t s e v e r a l weeks t h a t Bob Kauffman has
determined t o s e v e r h i s r e l a t i o n s h i p w i t h PSC, and t h a t he has been t a l k i n g
w i t h a number of our r e p r e s e n t a t i v e s about j o i n i n g him w i t h a n o t h e r
b r o k e r l d e a l e r . We a r e w r i t i n g you i n t h e hope of avoiding any
misunderstanding between you and t h e Company, which may work t o t h e
disadvantage of both of u s .
I
F i r s t , we want you t o know t h a t you a r e a valued r e p r e s e n t a t i v e of t h i s

Second, we want a f u l l
Company, and want v e r y much f o r you t o s t a y w i t h us.
o p p o r t u n i t y t o d i s c u s s t h e s i t u a t i o n w i t h you t o avoid any p o s s i b l e
misunderstanding. And p a r t i c u l a r l y we want you t o h e a r our s i d e of t h e
s i t u a t i o n w i t h r e s p e c t t o Bob Kauffman.
We have w r i t t e n Bob today s t a t i n g our p o s i t i o n w i t h regard t o him, and e n c l o s e
a copy of our l e t t e r , s o t h a t you may be advised of t h a t p o s i t i o n . We would
welcome a c a l l from you confirming your d e c i s i o n t o remain w i t h u s o r
e x p r e s s i n g any concerns t h a t you may have w i t h r e g a r d t o Bob Kauffman's p l a n s .
We w i l l continue our e f f o r t s d u r i n g t h e next few d a y s t o c o n t a c t you.
W
e would l i k e v e r y much a c o n t i n u i n g , p r o d u c t i v e and c o r d i a l r e l a t i o n s h i p w i t h
you f o r many y e a r s t o come.
We apologize f o r t h e form of t h i s l e t t e r , but w e r a n o u t of time.
Yours s i n c e r e l y ,
John B. Keeble
Stephen G. F r a n k l i n
Donald S. Aultman
JOHN M. C I C A L A SR.
DEVELOPER
22nd & Boardwalk

North Wildwood N . J. 0 8 2 6 0
December 1 2 , 1 9 8 6
Dear P r o p r i e t o r :
Due t o y o u r e x c e l l e n t r e p u t a t i o n a s a s u c c e s s f u l member o f New
J e r s e y ' s S o u t h S h o r e b u s i n e s s c o m m u n i t y , we a r e d e l i g h t e d t o
i n v i t e you t o p a r t i c i p a t e i n a n e x c i t i n g new v e n t u r e : SEAPORT
VILLAGE.
SEAPORT V I L L A G E h a s b e e n d e s i g n e d a s a u n i q u e a n d p i c t u r e s q u e
shopping complex s i t u a t e d a t 22nd S t r e e t i n North Wildwood.
The
complex i s now under c o n s t r u c t i o n on a r e b u i l t , widened p i e r
t h a t w i l l e x t e n d 500 f e e t o u t from t h e boardwalk t o w a d s t h e
ocean. The development, s c h e d u l e d f o r c o m p l e t i o n i n t i m e f o r t h e
s t a r t o f t h e S p r i n g , 1987 season, w i l l f e a t u r e a t o t a l of f o r t y
s p e c i a l t y and f o o d s h o p s . T h e s e s p a c e s a r e now a v a i l a b l e f o r
a n n u a l r e n t a l , a t p r e - c o n s t r u c t i o n p r i c e s r a n g i n g f r o m $30 t o $ 3 6
p e r s q u a r e f o o t . Types of b u s i n e s s e s i n c l u d e d w i l l b e c a r e f u l l y
chosen t o i n s u r e s u c c e s s f o r a l l .
A p e r f o r m a n c e a r e a w i l l be b u i l t a t t h e end o f t h e p i e r . T h i s
a r e a , t o i n c l u d e l i v e t e l e v i s i o n and r a d i o f a c i l i t i e s , w i l l s e r v e
a s t h e s i t e f o r ' p o p u l a r e n t e r t a i n m e n t and o t h e r e v e n t s d e s i g n e d
t o a t t r a c t l a r g e numbers of p e o p l e t h r o u g h o u t t h e s e a s o n as well
a s continued media coverage. Restrooms and o t h e r p u b l i c
a m e n i t i e s w i l l a l s o be included t o help i n c r e a s e f o o t t r a f f i c . A
large
s t a i r w a y w i l l permit beach access.
An e x c i t i n g
a d v e r t i s i n g and p r o m o t i o n campaign i s p l a n n e d t o c a l l a t t e n t i o n
t o SEAPORT VILLAGE.
According t o r e c e n t demographic s t u d i e s , t h e number o f a f f l u e n t

s i n g l e s , c o u p l e s and f a m i l i e s v i s i t i n g North Wildwood e a c h summer
i s r a p i d l y i n c r e a s i n g - along w i t h t h e i r p e r c a p i t a spending.
The o t h e r p i e r s i n t h e a r e a a r e a l l Amusement P i e r s . T h u s ,
S e a p o r t V i l l a g e i s a f i r s t of i t s k i n d - and a n a t u r a l s i t e f o r
t h e r e l o c a t i o n o r e x p a n s i o n of y o u r b u s i n e s s .
T h u s f a r we h a v e a p p r o a c h e d B e n e t t o n , S w a t c h , A t h l e t e ' s F o o t ,
Gimmee J i m m i e s Cookies and Banana R e p u b l i c , a s w e l l a s a s e l e c t
g r o u p of l o c a l b u s i n e s s e s s u c h a s y o u r s t h a t would b e b e s t s u i t e d
t o o u r c o n c e p t and would have t h e g r e a t e s t c h a n c e o f s u c c e s s .
S i n c e r e n t a l s p a c e i s l i m i t e d , we w i l l a c c e p t r e s e r v a t i o n s on a
f i r s t - c o m e , f i r s t - s e r v e d b a s i s . An a r c h i t e c t u r a l r e n d e r i n g of
S e a p o r t V i l l a g e i s e n c l o s e d f o r your f u r t h e r i n f o r m a t i o n .
Our r e p r e s e n t a t i v e , E l l e n Libman, w i l l b e i n y o u r a r e a i n t h e
n e x t two weeks.
S h e w i l l c a l l on y o u t o p r o v i d e you w i t h
a d d i t i o n a l i n f o r m a t i o n . Of c o u r s e p l e a s e f e e l f r e e t o c o n t a c t me
a t anytime.
Sincerely,
li
Omgon Pike &nuster, M 17601 717-569-4100
ROBERT E. KAUFFMAN
PRESIDENT
Mr. Jahn B. Keeble
FSC Seaxities
250 Piedim& A v e . , N.E.
A t l a n t a , Georgia 30365
Dear John:
for your letter of March 26, 1987.

It was very
enlighening.
I, of canse, have n, interest in getting into any
legal acticm w i t h anyone, partiaIlarly hhere both parties would be
hurt and only the legal repxesentatives wculd make m y . I knaw
that yau are not easily drawn into litigation and see no need for it.
Thank
ycxl
Bncezning your points, allm me t o respand.

1.
I am not irRerested in d t j n g o r p r r s u i n g o t h e r ~ ~ c ~ ~ ~
when I a f f i l i a t s w i t h another b-er.
2.
I am open to a period of time

yau could solicit whawer you
want to stay withFSC. I cannot coerce representatives to join
with me anyway.
3.
I did not s o l i c i t -tatives
t o leave FSC while under salary
a t FSC.
While ycu need same relief fnm the possibilities of solicitation by
me
your ather MFA1s, I need to be treated as others wfio have left
I app-te
your willingness to have Don Aultmn
upon my
-.
and myself work that out.

I also appreciate your interest i n a
peaceful tzansition as per our phme conversation.
R.E. Kauffman
Sccvrfties r r a n n n i o n r t h m q h FSC Securities C-ration

A RnJstcmd B r o k ~ r l ~ l e r
Member NASD
Member SlPC
Omgon Pike &nuster, M 17601 717-569-4100
ROBERT E. KAUFFMAN
PRESIDENT
Mr. Jahn B. Keeble
FSC Seaxities
250 Piedim& A v e . , N.E.
A t l a n t a , Georgia 30365
Dear John:
for your letter of March 26, 1987.

It was very
enlighening.
I, of canse, have n, interest in getting into any
legal acticm w i t h anyone, partiaIlarly hhere both parties would be
hurt and only the legal repxesentatives wculd make m y . I knaw
that yau are not easily drawn into litigation and see no need for it.
Thank
ycxl
Bncezning your points, allm me t o respand.

1.
I am not irRerested in d t j n g o r p r r s u i n g o t h e r ~ ~ c ~ ~ ~
when I a f f i l i a t s w i t h another b-er.
2.
I am open to a period of time

yau could solicit whawer you
want to stay withFSC. I cannot coerce representatives to join
with me anyway.
3.
I did not s o l i c i t -tatives
t o leave FSC while under salary
a t FSC.
While ycu need same relief fnm the possibilities of solicitation by
me
your ather MFA1s, I need to be treated as others wfio have left
I app-te
your willingness to have Don Aultmn
upon my
-.
and myself work that out.

I also appreciate your interest i n a
peaceful tzansition as per our phme conversation.
R.E. Kauffman
Sccvrfties r r a n n n i o n r t h m q h FSC Securities C-ration

A RnJstcmd B r o k ~ r l ~ l e r
Member NASD
Member SlPC
For
,nfL
1142 ELIZABETH AVENUE
BOX 4665
LANCASTER. PENNSYLVANIA
17604
17171 397-6174
April 9, 1987
Mr. Robert Kauffman, President

FINANCIAL PLANNING CONSULTANTS
1755 Oregon Pike
Lancaster, PA 17601
Dear Mr. Kauffman:
First, I would like to express my thanks for the co-operation and excellent
service rendered by Harry E . Radcliffe, a member of your orgainzation. The
response Harry has given to my specific goals has been extremely satisfying.
Due to Harry's display of concern and manner of handling my personal investments, I made the introduction to Mrs. Patti M. Rottmund.
Mrs. Rottmund is the owner of Conestoga Fuels, Inc.. Currently the company
and Mrs. Rottmund are searching for an accounting f i n to assist in the
management of the corporate money. Due to Mr. Radcliffe's patience and
ability to explain financial matters to Patti Rottmund, we had been considering utilization of Financial Planning Consultants to aid in Conestoga
Fuels, Incorporated's financial planning.
-
Harry arranged a meeting with Mr. Robert Long, another member of your firm.
After discussing the proposed plan for growth of the corporation and utilization of various assets with Mr. Long and Mr. Radcliffe, we were pleased with
the "team' concept.
This finally has lead to the matter at hand. I wanted Bob Long to prepare my
personal income tax returns for the year 1986. All the information was
compiled and in his hands in February 1987. To date, the work is not completed.
Harry has, on several occasions, asked the status of my returns, and I have
called to be told "it is on the list to be completed."
If
my
is
on
this is the type service the corporation would receive, I am not bettering
position. Therefore, I am of the opinion Financial Planning Consultants
not the proper group to retain for either a personal of corporate adviser
financial matters.
I regret this decision due to the find working relationship with Mr. Harry
Radcliffe. However, your financial group is not delivering your entire product,
service. Should you wish to discuss the situation, please feel free to call.
For
,nfL
1142 ELIZABETH AVENUE
BOX 4665
LANCASTER. PENNSYLVANIA
17604
17171 397-6174
April 9, 1987
Mr. Robert Kauffman, President

FINANCIAL PLANNING CONSULTANTS
1755 Oregon Pike
Lancaster, PA 17601
Dear Mr. Kauffman:
First, I would like to express my thanks for the co-operation and excellent
service rendered by Harry E . Radcliffe, a member of your orgainzation. The
response Harry has given to my specific goals has been extremely satisfying.
Due to Harry's display of concern and manner of handling my personal investments, I made the introduction to Mrs. Patti M. Rottmund.
Mrs. Rottmund is the owner of Conestoga Fuels, Inc.. Currently the company
and Mrs. Rottmund are searching for an accounting f i n to assist in the
management of the corporate money. Due to Mr. Radcliffe's patience and
ability to explain financial matters to Patti Rottmund, we had been considering utilization of Financial Planning Consultants to aid in Conestoga
Fuels, Incorporated's financial planning.
-
Harry arranged a meeting with Mr. Robert Long, another member of your firm.
After discussing the proposed plan for growth of the corporation and utilization of various assets with Mr. Long and Mr. Radcliffe, we were pleased with
the "team' concept.
This finally has lead to the matter at hand. I wanted Bob Long to prepare my
personal income tax returns for the year 1986. All the information was
compiled and in his hands in February 1987. To date, the work is not completed.
Harry has, on several occasions, asked the status of my returns, and I have
called to be told "it is on the list to be completed."
If
my
is
on
this is the type service the corporation would receive, I am not bettering
position. Therefore, I am of the opinion Financial Planning Consultants
not the proper group to retain for either a personal of corporate adviser
financial matters.
I regret this decision due to the find working relationship with Mr. Harry
Radcliffe. However, your financial group is not delivering your entire product,
service. Should you wish to discuss the situation, please feel free to call.
Management Group, LTD
TO:
Bavero
Schuttler
Volpe
April 14, 1987
Cur next board of di.re3mr-s meeting will be held on Tuesday,

May 5, 1987, at m y ' s Restaurant. We would like you to attend if
at all pssible.
If rut, please discuss the topics at hand with
Mike, Stan or me prior to the meeting.
At that meeting we plan:
1. An uplate of Fm; f m inception
a. budget review
b. goal achievmt analysis
2. A discussion of Profit Participation Plan in the form of
stock bonuses for prcducers

3. A
discussion of corporate legdl advice concerning the

formation of a separate ccwparnl to function nationally
4.
A discussicm of any newsworthy plans naw in developent such

as
private
take-down
-ps
and
illmmme
relationships
R.E. Xauf?imn
a: s. Qterbone
M. Hartlett
R. Long
A. Loss
Advisory
11, 1755 Oregon Pr*e
TO:
FROM :
DATE:
Lancaster, PA 17601
717-569-4100
Representatives
Stanley Caterbone
April 21, 1987
FMG
Attached please find the billing procedure that will be used

by the FMG Advisory and Accounting.
Please submit this form to Lynn and a statement will be sent
to .the client.
newsletter
A P R I L
14,
1 9 8 7
Insmame Manual
m t l y begun t o prt together the contents f o r our Innuance Sezvioes
'Ihe purpose is to have the necessary information to help all -T~S
becoane familiar w i t h the procedures f o r all of our primary insurance carriers.
I t w i l l be an easy reference guide to:
1) Underwriting t
s
2) P r d u c t s & Carriers
3) Processing Procedures
4) Contact Persons
5) Ccanpensation
My gcal is to have this in your hands w i t h i n 30-45 days. This w i l l help a l l of
us w r i t e mre b s u r a x e w i t h less effort. -Stan Qtm%cm
W e have
Manual.
P l a n n h Demrtmnt
the f i r s t week of operation
f o r $1500.00 from Scott Robertson
anyone would like same ideas on
happy to share saane of t h e i r ideas.
After
t h e Planning Department has received a plan

and R i M ~ e r m n - - C o n g r a t u l a t i o n s . If
h m to use our plan, they would be mre than
--Stan Qterkone
Retirement Plan
For a l l persons awaiting cxn Retirement Plan, I m y have hit the ja-!
I am
s t a r t i n g to negotiate ard recruit the
thathas developed the retirement
plan f o r a MAJOR brokerage house. mis plan is regarded as one of the best in
the irdustry. L e t s keep our fingers crossed. --Stan Qtexkone
-
New Off ice Potential

W e have begun talks w i t h a m j o r Redl Estate finn in York PA that w i s h e s us to
sydicate a new building in the dmarea. They are very interest4 in
taking this project into Financial Senrice Center w i t h FM; as a canpany sponsor
and tenant.
W e w i l l be lcoking to &t
planners and brokers f o r that area.
Anyone w i t h contacts should contact myself o r Bab Kauffman. Your help is
greatly appreciated.
-Stan Caterbone
Real Estate Fruiects

I have secured a source
million and above.
Any
refinancing such projects
available.
C a l l me i f
states. -Stan Qte?&one
--
of mortaaae funds f o r lame real estate miects. 2

anyi
n
in f'L-iaiking'or
m y be good .-p
'Ihere are finders fees
you need any more information. Available in all
persons having
Marketins Seminars
Anyone who is plarvling Seminars f o r t h e i r marketing plan please contact Alan
Loss. Seminars t h a t are available:
1) Half-Time Seminar
2) Successful Money MaMgement Seminar
3) Product Sponsored Seminar
Meetins
A brief reminder that an office meeting is s&eduled for 8:30-10:OO AM i n our

conference rwm this Wednesday April 15th, and also in two weeks on Wednecry
April 29th. -Bob Kauffman
Board of Directors
?his week vour board of directors w i l l be d i s a ~ ~ ~ iwith
n g the m p r a t e
attorney thec o r e form for us to:
1) Fersue wntxacts w i t h represa-katives autside of PA.
2) Provide an Equity Participation prcqram f o r F?n%cers.
e -type
capital raising for other locations with& violating
3) m
certain security laws.
It remains an exciting time, as this new business begins to take form. So marry
apportunities, so mch to do, so mch to get organized and developed. Is it
fun! -Bob X a u f m
t -
Assets
in the IF'S W i t v Pool are
nclw
in all capitdl letters, rather than

The Board
of
Directors Meeting was held at
offices of McNees, Wallace and
Nurick,
100
the
Pine Street,
Harrisburg, Pennsylvania on the 16th day of April, 1987.

PRESENT :
Robert Long
Robert Kauffman
P. Alan
Stanley
Michael
I
Jeffrey
constituting a quorum of
Loss
J. Caterbone
Hartlett
Jamouneau, Esq.
the Board.
TOPICS DISCUSSED
Corporate Structure for National Expansion
Because of the growth potential
on
national
level, we needed to research the alternatives

to
our
present
organizational structure that
would allow additional equity participation from
other large groups, ie. Barry Schuttler
Tom Turner
Form
FMG National, Inc.
This entity would own

100% of Hubbard/Brown Stock.
FMG, Ltd. would
retain 100% ownership of FMG National, Inc.
The above would be conducive for equity
participation
the concept.
'
and
also
foz
marketing
The
followir~g topics will be consj.dered
for shareholder
vote within the next thirty days:

Formation of FMG National Inc.
Directors Liability
Exemption of By Laws for above
Closing current offering
A 5:l
Stock Split
~ e % f r eJamouneau
y
advised on subjects of the R.I.A.
%
P. Alan Loss adjourned the meeting at 10:15
a.m.
LICENSED REAL ESTATE BROKER
P. 0.BOX 2300. PINELAND, FLORIDA 33945
PHONE (813) 283-106'
April 29, 1987
Stan Caterbone
1755 Oregon Pike
Lancaster, PA 17601
Dear Stan,
Enclosed is a contract, and supporting documents for the purchase of Useppa
Village Unit #lo-Left. Please sign all the documents where indicated and
return all three (3) documents to me together with a check in the amount of
$100.00made payable to the Useppa Property Company Escrow Account.
If you should have any questions, I can be reached at the Club, (813) 2831061.
\
Sincerely yours,
Sales Associate
JRKIjnj
Enclosures
May 2, 1987
I
of this dmmmt is to recollect a l l activities that I've been

involved w i t h i n Financial Planning and the formation of Financial Ma~gement
G r m p , to verify and doarment seine of the activities that I've been involved in
to date.
WpupOSe
I ' m afraid that as w e go further and further there w i l l be a need for such
information especially w i t h what has h a m this past week w i t h our corporate
officers and board. F i r s t I would l i k e to begin back in ti-&very beginning so
that the f u l l scope of our activities seem to f i t into ane place and also so
that
of the issues that have mme up are tied into what has happmd up to
this point.
First of a l l , I started in the Financial Plback in 1982. After

getting out of the amtracting kusiness I took six weeks and traveled across
the country and came back and decided to get into the financial services
Being that several relatives have had dealings w i t h IDS, Investors
industry.
Diversified -ices,
I called the local branch in
upon finding the
manager Mmed R & e r t Kauffinan. Bab spent -time
withme, decided he w i s h e d
to hire me, and that began the process.
I was
actually licensed in 1982 for securities and l i f e and was p t under the
mnagement of Bob Kauffman. Shortly thereafter, I would say probably in Jwe
or July, Bab was pmmDted and took a division in Tampa, Florida. Myself and
)three o r four other individuals who were under m g e m e n t decided that w e
wanted to fom a g r w p together so w e talked to anather district manager,
Staren H. and decided that, i f he would allm, we kcdd like to plt an office
together w i t h him.
A t this time w e did not have an office and he was mrkjng
out of a sndll office in Millersville. 'Ihe people who were with me was myself,
Mike Hartlett and Alan Loss. The three of us were very, very large producers,
especially Mike and Alan.
The three of us were probably larger than Steve's
district a t that time, so a t that point we located an office a t 255 Wer
Avenue, we walked under Staren H. district which increased his inmme by a t
least 30% to 40% pthat -&ion.
After being involved in the business I decided that firrancial planning should
be wre abjective and fee based, so I became one of the larger fee producers
using fees as w e l l as mmnisSion incane. A t about the same time, I became
involved i n the IntermtiAssociation of Financial Planners. A t that time
the local chapter was just being fonwd and I volunmy services to help
on the board.
Menbrs of the board, a t that time, was just being formed and
headed by John Herr.
I became m t i v e vice president and virtually helped
run the chapter and
build it to its largest m
p
. lhat gave m e
as f a r
the apportunity t o meet other people, broaden my horizons and *tian
as the financial planning h3ustry and just haw the hleperdent planners f i t
into the stream of the industry. I had quite a b i t of activity and did alot
for the local chapter and became very involved.
helm
mer the next several years I made a very gwd living. I was never a very big
pmducer, althmgh one of the bigger ones in the Harri.skurg division. But I
was not the biggest, but the premier fee producer for the division and was om
of the leading in the camtry a t that time. I shortly became kmmledgable of
the other pmfucts available in the financial services industry and learned
very quickly that it w a s virtually inpossible to have one canpany manufacture
and produce ccpnpetitive products across the line. A t this the I was setting
l
e Amstrong
up a dhmr meeting for the IFP that was going to sbax2ase A
who was one of the premier planners i n the cumtry. She was very visible and
very widely m. I set up a dinner meeting for her khich attracted close of
om hundred
p r o f e s s i o n a l s a n d o t h e r p e o p l e t o a ~ . l h i s w a s f o u r o r five
times larger that any ather meetirg the chapter had ever had. A f t e r the
meeting I was involved in a -ion
w i t h Alex regarding the financial
planning h l d z y and my aspirations of what was cutside of a pmpriety
envimmnmt.
I told her that I was thinking of lMking a m e and asked her i f
she had any suggestions of wha to q e a k to. A t this point in time, we were all
i n Butler Avenue and Bob Kaufhan was in Georgia, running a division of ID6
back there.
He, a t this time, had become one of the l a q e s t divisional
n g e r s and had shwn very high pm&active
recruith-q skills. He was running
one the largest shop= intheScuthEastandwasbexdtqveryprofitable for
II1S. Alex suggested that I c a l l a gentlwen by the name of John &&le who was
then president of Financial Services COT. a bmkerjdealer based in A t l a n t a ,
Georgia. A t this the Bob Kauffman was probably, as unfamiliar i f not mre
unfamiliar, of the irdependent e n v k m e n t available to the Fimrcial Services
Industry. Specifically Financial Planners.
I phaned Bob a n d t o l d h i m t h a t I w a s ~ i n g t o l o a l c a n d ~ ~ t e l s e w a s l ~ o u t
there."
Before this time, a ccuple months prior, I atb&& a career
conference in Florida with IRS. A t one p i n t I was in a roam w i t h Bob Ihufhan
and R
' mt TUmr, who was the biggest divisicmal l ~ ~ g aet this
r
time with ID6.
I began to disc;uss my dissatisfaction with the ccmparry and the way that they
op=rate and I suggested to them that it pmbably would not be too difficult to
duplicate an organization instead of bebg built araYd a proprietary that was
built solely amund a non-proprietary product. A t the time they both leaked a t
w and I don% m m a k e r i f they l a w , k u t the idea really didn't redlly
interest them, and it just rolled off their shailders. Right after this
meeting is whenIhadthedinnermeetingvithAlexandIsetupthemeetingin
A s I usually did, I always leaked a t Bob Kaufhan as my mentor. H e
virtually w w o f f t h e s t r e e t s a n d m m e a w a y t o w m y i n a w a y
that I never
I a u l d w. I always respected Bob as a very good
sal.esnan, seeming to have a very high financial intellect and I looked up to
him as he taught me alot. So I got on the phone and told him I was going to
v i s i t an imkpn%& planner i n Atlanta.
A t this time, Bob was bemning
dissatisfied with the management of ID6 and was not very happy with the way
they were using him to build areas. Vihen the areas would become profitable to
him they waild mehimtoanotherdistressedamatobebuiltup. Sohewas
doing a l l the work and ID6 was making a l l the mmey because they waild plt i n a
m a ~ g e rfor less money and so on and so forth.
Atlanta.
Bob then told rn that he may be willing to go intD the meeting w i t h me under
the asslrmption that I did not tell them who he was o r who he was w i t h . I
called J&n m l e and told him I wanted to cane dawn and v i s i t him, being
referred by Alex and he was very nice mer the @mne, giving me a cordial
invitation to cane down and actually had me set up the meeting w i t h Ray S m i t h
who was one of the sales ~ g e r s .I set up a two day meeting w i t h myself and
this anonymxls person, Bab KaufBnm.
W e spent two daysatFSCandwhat
essentially happened is that they became infatuated w i t h Bob's recruiting
skills.
On the spat they offered Bcb a position within the a m p n y as far as
recruiting and head of sales manqement of FSC.
I resigned fm m6 January 1985.
Bob m i n d a t ID6 and fnm Octaber to
March w a s negatiating his position and pay and his -tion
w i t h FSC. By
March he actually decided to resign fmn ID6 and he was a k a r h d into the
corporate structure of FSC. January Ist I resigned fmm IS. I was Upstairs
w i t h Mike Harllett, sharing an office space and the rest of district w i t h Alan
Lms was still dwEbks.
A t this time, I began to build my independent
practice of Financial Planning. Basically I took 95% of my clients fmm IC6
and began working w i t h them. Bob began working i n the national recruiting for
FSC and started attracting IDS people to FSC.
the Fall of 1985 I had became w i n t e d w i t h my business l i f e , not

learning m,lonely being hkprk3ent and I became frustmted. I knew that
no one in Lancaster was doing a very high quality m i c e rqardbg Financial
laming and Financial Services.
Tb me, lancaster seemedtobeahighly
attractive market w i t h alot of wealth being spread cut amDng alot of different
players.
No one was being creative
r " lg their efforts it was just three
o r four brokerage houses, insurance agents, banks and irdependent planners but
iw one had a very strcarg p i t i o n or d a b a x e in the financiae services
By
-.
I visited w i t h Bcb Kauffman in the Fall of 1985 as I usually did every ccuple
mths ard told him I wished to do scwthing else. A t t h a t time he asked me i f
I wanted t o cane dam to Atlanta and help him work on the concept of o n p n y
awned shops.
W h a I was dawn there, he mmtioned severdl positions i n the
corpration that I may be ini n and he set up a meeting w i t h me and
Steve Franklin.
Stwe m t l y needed smmw to m a ~ g eh i s national sales
office so khj dawn there I spoke to him, just t o verify w h a t was available.
A t this meeting, Steve Fmnklin more of less indicated t h a t I was a ~~kuned
cut
who was just leaking for a place to go. Ncrthing ever happen& and I
left the meeting w i t h very l i t t l e respect for Steve Franklin.
Bob offered me a position w i t h i n his mnpany owned store, writing cases doing
p l m , doingsaneotherthings. CIhatwasearlyOctober. F o r t h e n e x t t h r e e o r
four weeks I prepared myself, relwtmtly, for the transition and moved to
Atlanta and tried to maintain clients up he^^ as well, and plrsue whatever Bob
was doing down in Atlanta. A s th went on I f e l t I really didn't wish to move
away fmn the area and that maybe the opportunity down there wasn't what I
thought it was, o r wasn'twhat Bab said it was.
On Nw&
27 or 28 of 1985, I had a meeting w i t h Bob I c a u f m and Mike
Hartlett a t 1 4 x b n r s m u n t on the Rahrerstawn M,
Ianaster, PA. 'me
pupose of the meeting was to find art i f we a u l d collectively p r t together
xmething in Iancaster w i t h regards to f h i a l planning. I wwld say that
e t i n g was mre of an effort on my part than anyone especially Mike Hartlett.
Mike was, a t this time, also inrlependent, l e f t ID6 anl follckied me to FSC along
w i t h Bob.
?he meetingwas on themorning a t 9:00 a.m. and we dkmxxxdwhat
options we had as far as w i n g sanething tcgether in Iancaster. I guess the
bsic reason for the meeting was to see i f Mike Hartlett wished to do sanething
together w i t h us. A t this time I was qmating my practice, Mike was aperating
his practice, anl the only
we had in amumn w a s a reception man
adjoining ax offices.
A t thistimeBobsawthatifwecculdputsawthbg
together in Lancaster he omld pmbably f u l f i l l same of his recruiting
-ts,
giving h i m a place to actually xecmit people to rather than
using FSC in Atlanta. So that began the process of w i n g together a shop in
lancster and Cerrtral PA.
I b e s a n t o recruit fran that point forward into our so called plarvling firm.
A t this time the plarvling firm was going to be caprised of financial
Sane of the f i r s t pecplethatItall#dtowasMonaRishel,Dick
and Bab Lnrg. I spoke to other plannezs-about joining our firm and
then I got the idea of adding other professionals mainly legal, a m - ,
& estate and ma@ insurance. It was then that I got the idea for the one
stop financial firm.
Tbmeitseemedapprmt-thatitwasimportanttohave
a l l the individuals working tagether collectively
manage one financial
planners.
-,
'
'affairs.
It didn't seem that d i f f i d t to accaylish that i f yau had the riqht
irdividuals willing to take the risk of a t t m p t h q such a project sod who had
the clientele where they didn't have to rely on attracting new clientele.
Well, ~ t h i n g l e d t o a M t h e r a n d w e s o o n b e g a n t o r e n U i t ~ a t ~ ~ a n d
sizable grcup of individuals. I prcbably was responsible for d t i n g 90% of
the local people and artside pecple, Mike was mrking with Rick Volp in
F h i l a d e l m who he w o w w i t h a t ID6, and a hcst of others. T h e i n i t i a l core
was myself, Mike, Mma, Dick Sherisahn.
A t thistimeIranintoSattRobertsonattheZhreeMilelhsewhowasworking
with Asset Mamgement.
I expressed the idea to him and he became interested
and became one of wr pecple. I also talked to Gmmlyn Royer who was w i t h Pru
Bache and she was interested in joinhg. By February we had a fairly large
group of people who were willing to ammit. F i r s t thing we had to do was find
facilities and Mike f d the place available a t the OregcPl Pike location which
was just urder -on.
A t f i r s t we were looking for 2,000 square feet to
hcuse f w or five i n a i v i d ~ ~ LA~t. this time I talked to Tim Lanza, people a t
the legdl firm, and Danny Beqer as f a r as doing me thing with real
estate.
It was s q p x e 3 to beanaperationfinancedandsqportedbyFSC.
horn December until May FSC was pranking furd to f h m c e the aperation. We
nedd start up funks for fur nit^^?=, caymter systems, salaries for myself and
Mike for ranaging the -tion.
Mat happerred &ing this t h was that FSC
was constantly premising us financing and we had yet to receive any actual
m ~ n e yand the invoices d t t e d w e r e never paid by FSC.
Bob ~ ~ a u f f u n n
was the liaison and -tly
was being directed by Stare
Franklin ard Jdyl m l e . F'ran what I have learned over the past several years
was that they never really interded to finance the aperation brt they were
strirqirq us along ard using us to recruit other people to the operation.
After we rexuited ten o r more people it became apparent t h a t Mike o r myself
g e an operation. We also
did not have the managing skills required to l ~ ~ such
learned we l o s t our financial backing, so we had to figure out what to do with
A t this time we decided to raise the capital a.u-selves,
finance the
financing.
And
operation auselves with quity we raised thmqb the planners.
essentially we learned that no one i n the industry, or very few actually awn
their awn business but are only a distrikrtion for a f i n a d a l product. W e a l l
have seen bmkr/dealers b e b g b a q h t and sold for very sizable m t s of
m y , usually in the vacinity of $1 of quity for $1 of gross ccrmnission
inmne.
We began to see t h a t we were seeing anyi&em hran $1 million of gross
amnksion imxms per year w i t h the grcrup that we had. In the grarp was Ken
Ray and some very m t i v e and talented people.
cur m e e t h p and discussiuns d c h w e r e very long, durable and
mpn L&omber t o May I probably spent every other evening with Bob
tiresame.
i n Atlanta trying to pt this deal together.
Tbx@mt
L e t me go over a couple of other things that had happened up to that time that
I f d ljke mentianed in this document, before I fozget. Back in the sunmer of
u
s
e of
1985, I was contacted by Jdyl Fhilips fmn Blue Pall National Bank. m
)ny v i s i b i l i t y w i t h the local chapter of the IFP J d m wanted to call me and look
a t the o p t i c u s of Blue Bas11 National Bank becane involved in Financial
Planning.
Jchn called a meeting w i t h me ah3 I believe he was looking for
scanmne to head a Financial deparbnent with inside Blue Pall National Bank o r
contract w i t h s ~ n e o n e outside. I had 1-1/2 bar with J d m and his suborbant,
whcan I can't remember his name, I believe it was Joe. H e was the vice
president of the trust m t , I believe. m
y a f t e r the meeting they
did not have the fiath o r the confidence that I was the right person or they
didn't believe t h a t this was really what they wanted to do. But I have never
M firm them s i n .
Fall of 1985, before our initial meeting, a f t e r I &idea

that I was not goin g
t o relocate in Atlanta, I began to look for other options in
One of
those were t h a t a couple people pt me in tmd w i t h several banks. One was
Joe S. with -th
National Bank and another was Meridian Bank. Both of
those irdividuals received
calls fmn peoplekl I did business w i t h
stating that I was looking for s a n & h g
ard asking that they give me an
btemiew. None of them !could wen goive me an interview. I received a letter
fmn C c m k m e d t h s
t
a
m t h a t they had no pasitions c p a a t this time, but
they would keep my ram on f i l e .
Fmm Meridian, I don't believe I wen
received a letter.
aLis is oneof t h e r e a s o n s t h a t I d o n f t h a v e v e r y ~
respect for banks, or people whowork inbanks. I d o n f t w i s h t o d w e l l into
this subjed, but because of several of these eposides I just don't have mch
respect for bankers, o r banks what so ever.
-.
was going to receive 60,000 shares, I was to receive 40,000 shares andMike
was to receive 40,000. Also, Mike ard I w e r e to receive $3,000 per month and
Bob $5,000 per mnth. Bab and I had a deal as I did not believe he shaild have
more of the canparry than I because I pit it together. We had an agreement
&ereby
I could buy 10,000 shares of his 20,000 a t anytime a t cost so we would
both have 50,000 shares. I had papers drawn u p t o that, however, whenwe began
t o have problens, I l e f t things drop by the wayside.
Back in Februaq 1986, I became g o d friends w i t h Mary Lynn D i F o l c a , Kevin's

sister ard Mike's wife. We were always g c d friends, but back then when Kevin
left, we
very close because I spent alot of tim with them. Mary Iynn
was a t the time, 30 years old with three children, and she was always very tied
dam with the kids, basically a housewife. She never really had a job, never
worked.
I t w a s h a r d forherbecauserrmtof her other frienlswerecutworking
and had 01-eers. I a s k e d h e r i f s h e W d l i k e t o M p m e o u t f o r a f e w h o u r s
a we& doing general clerical an3 typing. She was very excited. I tho~@tit
was a chance for me to get S(II*~thirqs done ard I liked Mary Lynn alot d we
got along and I thx&t it was a chance for me to get a few extra things done.
I took her on in February and before too long she was working 30 hours a week.
She had a babysitter lined up for the kids, ard it was very encanraging for me
to see her do this because it gave her the confidence for the f i r s t time that
she could do spnethhq other than just have children. She was having a great
time and I was having a great time and.= enjoyed working with Baeh other. A t
that time, Bob invited .Mike and I down to the annual confererms in !Iwsm,
Arizorn ard w i t h the conferenoe amangments we were allawed to take saneone,
such as your spouse. I asked Mary Iynn i f she wanteA to go and I don't believe
she was ever on a plane before and she asked Mike and he said it waild be good
for her t o meet scme of these peqle and get: involved w i t h a career. We ended
up d a m a t Tucson ard that was i n A p r i l 2 a n d w e s p e n t f m o r f i v e d a y s
there.
Upon meeting Bob ItoldhimIwasbringingMaryLynnoutandIhew
from the start that this was a sore spot. First of a l l she was married d he
couldn't urdershtd what she was doing cut there w i t h me. Semnl of a l l he
didn't appreciate the whole s i b t i a n when he met her he said scauethbq to the
effect that she looked very young.
After the secand day w e were a l l g c d
ard she was getthq a l a q very w e l l w i t h W and Pam. In fact, Pam
friends
confided things in her that I kmm Pam never told anyone. It looked as thcaigh
they liked, or a t least pretmxkd to like Mary Lynn and so anyway we all had a
Bcb, myself, andMikespent&of
w r t i m inindividualprivate
good time.
meetings trying t o pt this deal together and work cut the details -idly
with FSC.
think it was back a t this time-we r e a l i z e d that Bob was probably going to
fran management and cannit and cane up to Lancaster. I think one of the
reasons whyMaryLynn andIbecameveryclosewasthatsheremindedmesonuch
of my mother i n t&
way that she handled her kids, family and I became
infatuated w i t h that.
I liked her alot. Wt haFpened was that Mike and Bob
resented the fact that we had so rmch fun while we worked. We got m r k done,
but we went out t o lunch for an hour or so and we really enjayed things. To
I
resign
'
them that had no place in business. For me, as 1as I got my work done, I
f e l t better about my work ard it worked art for the best. mis w a s a problem
an3 w i l l ccmne up later.
into the building, they wmld not a l l m Mary Iynn to be back in my

haever, Nancy A. 's desk was right ma& up against Mike's door. lhis
start& all the problem w i t h Mary Lynn. She saw that and she wished to work
for me, and they were not goiiig to let her. It just started problem fmn day
one and it had a tmmxdms impact on the relationship between me, Mike and
Bob.
'Ibis was the straw that broke the camels back as f a r as cur relationship
was wncen-ed.
Ever sincethathKpenedwestoFpedcamunicating. matwas
the f i r s t m e i n trying to rescind m y i n p r t a n d m y o m t m l s o f a r a s t h e
campany was c0ncxm-d.
As f a r as the staff was ooncerned they had a feeling
that the staff should be treated as dirt and made this urderstxm3 many times to
me
this is against a l l my philasophy of life. For months, because of this
attitude, Mere were problems with the staff. It was because of this t h a t the
staff didn't respect them, and it was just a formths.
We w e d
section,
July and August, Bab w a s still d m in Atlanta and I was doing

the work i n lancaster. Fmn J a n u a ~
until
~
Januray I took one day off
for Memrial Day, one day for July 4th, one day for labor Day and cme day for
'Ihanksgiving.
Mike H a r t k t t took off two of three becks, leaving m e to tend
the shop.
I was always the care doing all the work, recruiting, stock
offering,labor m a t t e r s , drew up all the amtmcts, drew up the offering
w i t h the help of the attorney. It was fiwry t h a t I was the only one
raising the mney
probably 808 of the furls. I was the only care of the
principals who had outsiders investing i n the canpany. Ihe most they did: Bob
Kauffman raised $5,000 frun his father in law, so not d y did I pit my cwn
mney i n I risked that of my clients. But they w e r e willing to a a q t t h a t up
front.
A carple times it came down to either me getting the m m q fmn my
clients o r us not having the financial a b i l i t y to pay off sane of the capital
resources that we had.
W i n g June,
most of
~~
W i n g %pteubr we began to have pmblems w i t h Mazy Lynn and the staff and
'Ihis was the beginning of them hying to reduoe and dilute my control of
the canpany as f a r as input was cancerned.
It was a very emotional and
d
r
a
m expsriexe a f t e r a l l t h e w o r k I d i d t o p l t t h i s a l l t o g e t h e r t o f i n d
those twowere trying to plsh me cut. Itrsachedthepointinoctoberor
Noventer where they actually asked me i f I wanted to "get out." 'Ihqr indicated
that I was not right for m a ~ g & ,
m a ~ g e m e n twas nat right for me, t h a t I
wasn't having fun and all this and that. Mnst of t h a t was due to their action
as f a r as their trying to dilute me and weaken my umfidenz. lhey c0Ntantly
made fun of me i n f m n t of all the other planners a t meetings and it was just
ugly.
'Ihey also t r i e d to internqj my relationship w i t h Mary LyM w h i c h was
ruthirq mxe than a very p e r s a d , deep fri-p.
me.
No care lamws this, kR the trauma was so heavy that I went mxier the care of a
Hospital, beginning N m m h e r and I was suffering a
psychologist a t St. J@
severe case of depression. Eecause of d z @ r e n i a being f a v d in my family,
I was not afraid to go seek psydmlogical camseling. I was on medication for
three months.
In September they had it in their minds that they were going to get r i d of Mary
Lynn.
And they tried every opporbmity, finally in N o v e n h r a week before
Thanksgiving, they fired Mary LyM. W i t h o u t cause, for no reason, other than
they just wanted her art ard felt she was incapable of whatever. It actually
reached the point wfiere Bob andMikewhenarnurr].politickingthebrokersto
s q p r t them t h a t M a r y L y M w a s n u t d o i n g h e r j o b w h i c 3 1 w a s m t t r u e . Shehad
the canplete w
r
t of a l l the brokers. Maybe a t times there was a case wfwe
sawom was unhappy w i t h her perfommce, but in general it was a ploy, a plot,
fabricated by Mike and Bcb.
their attarpt to lmy me out and get rid of me so far as my Oontrol and my
interest, I held cut reluctantly often times mxlering i f I were going to give
in an3 by 0lristma.s I decided I wnuld stick it cut. 'Ihere
not other
alternatives, kR the nwney they offered me to get out was $2,50 a share which
canes out to $100,0000.
Iwantednopartsof it, s o b y J a n u a r y I d e c i d e d t o
stay.
After
Bob h a d s e v e r a l c a n v e r ~ a t i ~ ~ l ~ w i t h B o b I c n g s a y i n g t h a t h e w a s ~ i e d a b o u t m y
v
i
a
l efforts and that I was heocming slack. Ihe whole reason was
that they were hamering me daJnandbeatingmeupineverywaytheycculd,
cktmying my confidence. AftarIspenttimeandeffortardIbelieved inso
nu& of Wmt I'd done, and they were trying to take this away franme and get
me art of the picture.
Thraqh N o v and
~
Decc&er
there were meetings between myself, Scott
R c h r k x m , Alan Loss, Bob Long and (luo1ynFlayer rqanibq the activities and
the ~ S t y l e s o f M i k e a n d B o b . ~ w e r e v e r y ~ , w e r e n o t v e r y
trusting and I was always in the middle between the managerwt and financial
planners.
I had relatiMships with everyone and I believe that this -tend
Bob and Mike ard they tried t o g e t m e c u t o f thepicture, kttheplanners
wxlld not allcu this because the planners did not trust Bob and Mike w i t b a r t
havingme to keep them on balance.
I raised most of
the nomy, d t e d lnost of the people, p t the offering

together, pit the ampter system tcgether, workedwithall the
ampter softwa??=, and a c t u d l l y . came up with the name Firnncial Management
(;mup and the idea of having a l l the subsidiaries doing different things. My
involvement was very deep, pmbably deeper than anyone in the organization.
memo-
W - m I w a s p l t t i n g a l l t h i s t o g ~ , I w a s i n ~ w i t h A l n Y u l a tItalked
.
abaR having nnr@age,
banking a part of a t I was doing. Nathing ever
happened bebeen the two of us, but in ~anuaryI received a call fran Al askhq
me to see i f I a d d place any mrtgages in the east coast. H e was willing to
pay me xmghly one half a point and this was a t a time, because of the
activities of Bob and Mike, that I tku$~tI would give this a t r y to give me
sane secwity. Should saoething f a i l i n the canpany, I would have sanething to
f a l l back an. A t this time I involved Scott IInbertscn and Bob ~cngand I told
them we would form a three way w
p and we wnuld work an a real estate
project on cur awn. ' I h e r e a s o n I t o l d n o o n e a b c u t t h i s w a s t h a t t h i s w a s m y
ace card in case Bob and Mike ever really threw n~ out. I was mt going to give
&em any r e l a t i m s h i p , and I j u s t TIE&&
sane d t y .
we were really doing was lwkirg for 1of 2 millicm dollars and up to
refinance or finance new and existing realestateprojects. Wemadeafew
calls, finding that ax rates are very anpetitive.
A l was mre of less
letting me get plqged into the major Savings and Loans and Inswaxe
mnpanies.
Wefam3cuttherewereveryfewpeopleinthearea, i f a n y a t a l l
who could a q u b s the terms. We began having a great deal of success and what
we found was that almcst everyone was allawing us to bid on their project. We
created a campany called C!rekive Finance Caopany so that we would not a p x e
Fm; t o any l i a b i l i t i e s as far as cur activities. W e agreed fmn the beginning
that FIG wxild receive a m t a g e of cur activities ~IXI
we figured 15%was
f a i r since we actually mnufacturd the pIoduct wfiere FIG *en cut and used
othex manufactured products. We didn't feel they were entitled to a 20 30%
split.
What
of cur amtmzts was w i t h Tony Bongoivi in New York. He a t one time dated
Scott's
sister apprmhmtely ten years ago.
Scott maintained a loose
relationship w i t h Tony, calling him one= in a while regarding business m a t t e r s
and business activities. Scott called Tony one day atcut a real estate project
that he i3mught
Tony said no, but he my have another
project that we would be interested in. Scott asked m e to go up to New York
with him to talk abcxlttheprojectand1 askedwhat itwas. He indicatedit
was a mwie.
I was very reluctant and hesitant to do this because nnvies t o
me, tax shelters, scans, not very econcmic type investment. Me being very
comxvative was not attracted, but I decided to go anyway just to get cut of
town, mre or less just to get away.
(Xle
I got up t h e n I was totally amazed a t the caliber and the people who we
were associating w i t h .
What I found cut was that we were working w i t h the
leading recolding s h d i o in the world. T h e r e d t i a l s , their acccnplidxm~ts
were @enmaml- they were just it. I'm not going to spend alat of time of
this because just the battcm line is what is inporbnt here. After seeing the
project wfien I lcoked a t what Tony was doing, and fran a business perspective
there were just so nary elewnts in this project that were just truly amazing
to me so far as distribution and markeI5.g and riskand eveqtAi.q else.
Bottan line was a pruluct that was worth 15 to 20 million dollars being made
for 4 million w i t h the ability to be one of the -1
movie, video projects
of the years.
biten
a l l ycu have the leading recoxding studio in the world working on the
scan3 for the project that was going to include a follaw up of Tony's previous
band who- was BM Javi who was alreacty one of the hottest thing in nusic as far
as alkum sales.
Then you have the fact that he was going to digitize the
was
never done before in the nnvie industzy a t a time when the
recording which
vidm market is just going bananas. N o t only that, hut the label that signed
the banl m MN.
You put a l l this together and ycu've got a penmend
business w i t h alot of apportunity
F i r s t of
seeing this, I ammitt& myself to the project not kmwing h o , where or haw we
were going t o raise 4 million dollars but I beliwed in the project so mplch. I
guess because I saw alot of the same elements used in F% in this project, and
even more.
I got instincts when I raised money for Em; I was still very
concerned with the risk elements to my investo~sbut when I looked a t this
project the risk was even less. Iess risk, m r e protection with this project
so I believed in this project. We spent seven or eight weeks developing the
packaging the product for the investors, things have hapxwd during that time
that f e l l into place perfectly
the a r t i c l e in lblling Stone, the marketing.
is May 4 t h a t 4:30 a.m. and there is no d a b t inmyminlwith the articles

in Rolling Stone that we have the money for the m i e . lhat project in itself
w i l l pmbably p t us in the forefront of the n
e
industry within
It
eight W.
It is mird b o g g l i n g a s f a r a s h t o n c a a e o f t h i s , b u t t h e
project is done, we did sanethjrq, we did not use Fm;, they w i l l receive no
I guess what I'm saying ik that because of the way Bob and Mike treated
split.
me or plshed me to go cut and do things, that did not involve Em; and I did not
feel that they did not deserve to becarre a part of these things. Fran the
beginning I knew Em; was going to get their piece.
L e t me go back to an earlier developlwt a m c e m h g the E!mker+er.

We of
course thought in the begthat we would becarre ax own broker/dealer.
However, after long, bard discussion, we were to the pint of getting a license
for brokerldealer, we decided we did not have the admhktmtive capacity to
N f i l l what we waild need to a-lish
the broker/dealer. Back in Nwember,
-,
Bcb started soliciting other -/dealer,
l c o k h ~for
~ three things;
service, high pay cut, and
equity.
We knew that we had t o own our
brolerldealer kusiness.
'Ihere were two players that we came a
m one was
Iiikkml-m cut of wshhqhl DC and the other was Financial P l a m e ? s Group
which really involves sane of the premier financial planners of the cumtry,
B i l l I b q l e r , Wayne Webster, so on and so forth.
The Iceogler grarp was strcng, large, y a q and they were doing nxghly 20
million dollars of gross canmission incane per year but there were saoe people
in the organizaticm we did not feel ccmfortable with. Hikbaxd Brrx~nwas a new
start up, starting up when we did, was a s p l i t f m a previous bmker/Mer in
D.C.,
that involved f m a syrdiotor to a -/dealer
that no one knew
anything a?xut. However, they really enticed us w i t h a very attractive equity
deal.
Bob maintained most of the cmmmications and mmt of the research
involved in this project.
It was brcqht to us in January w h i c h was IpuFplly
20% of their stock . w i t h 90% payout , territorial with override for aqthirg
that w e did.
0fthethingsImtshaildbedoneisthatscmeaneMdbedownthere
1
a t their t m d i q department, along with the capability of FSC. I tried
to get people down there several tims and I suggestd Qmlyn Royer because of
what had haFpened to her.
Finally Peter Pnneros and Ken Ray bent down, and
this was probably during U a x h . Anyway, this whole thing was dcne w i t h very
l i t t l e mmmicaticn as f a r as me, Bob and Mike. lbre of less, Bob wculd go
cut and do scanethirq and wculd fee3 back to us, but we redlly had very l i t t l e
involvement with what we into do w i t h M Bnmn. One thing Bob
irdmted w a s t h a t i f w e b e n t d o w n t o K i b b a r d m w e w c u l d n o t f i n d i r m c h , they
were just starting up, they were new, they had rmghly 10,000 sq. foot of
office space, a few staff people and the system of operation. He did feel they
w e r e capable of fulfilling cur needs.
One
the transformation of licensing fmpn FSC to Hilhxd-Bnmn and we

prcbably had 60% to 70% of the in house w l e to FSC, Alan Inss, Scott
Robertsan, Rich Bravenuan, Keith Waters, R x M Dellinger, Kazly Radcliffe, along
with Barry Schuttler and sapne of the other satelites. A t this point Tan 'I\uner
was free ard clear and he was looking for scsne direction. By the week of A p r i l
19th
Tcm was up v i s i t k g with Bob all week seeking that direction and he was
also visiting w i t h Hibbard Bnmn so it looked l i k e Tan wculd also b e a m
involved.
We began
I also negotiated the courtship of Tony Pascoti and got him involved.
Fran the perid of A p r i l 1st on, wfien we began transferring license, one of the
main
EXPANDED EOAIlD METIKG

May 5, 1987
Jerry Bavero
In A t t e x h x e :
Stan caterbane
Mike naruett
AlanLDss
m
Bob K a u f m
XM Ray
-er
Richard Volp
Meeting opened by Bob Kauffinan
A.
N k r e we are tcday
~~
Week article on conveniexe Wtxies largest

1. S t a n graJth in5mtry for next ten years. Financial Management Group is
a wnvenience i d w t z y .
Mortgage Ebmkerage contacts leading to distressed properties

symiication pxsibilities. Ccmercial -y
located from insumwe
capmies and Savings and Ioans. Accamt fram $2,000,000 and up.
2.
3.
Eawie.
4.
McCormick.
Raise $4,000,000.
Tony Bongiwi.
Sports figure fjnancial planning
in retum for
agents contracts.
Service
B.
IFS. DyMtwownedby IFS. Barry Schuttlers IFS enhancement.

wants to design a system which would coordinate all three of
the above. ISIS developent w e l l under way. XM Ray reports c q y
w r i t e mrk done for llEkrsanal BrokerI1 software. C o s t approximate
$10,000 per site. $100 per month maintain fee for s a t e l l i t e distri1.
Stan
bution.
C.
T h i n g Service; Ken Ray

1. Monitors mutual M offering switch protections done for both
stocks and mutual funds. 1/2 of 1% fee charge.
1. Express the p t e n t i a l for linking Dynatax t o IFS for benefits of

coordinating tax preparation an3 client review.
1.
ming w e l l .
Good
profit scurce.
1. mkhg book for us to cutline licensing procedures,

a ~ l i c a t i a n s ,insurance canpany information.
A.
Bab Kauffmn raises question: Shcmld F h i a l Mmgement

be
~withachievingequitycninsurancebusinessinex~e
for v o l m ? Shaild we limit the nrmber of c a p a n i s ?
1. ShGild we ,py htere&d in reinsmame program.
risks.
a.
b.
2.
Down side
Limit planners -on

of objectivity.
harder to s e l l FIG i n the firture because of latent
l i a b i l i t y &e to losses extending fnmn lass of business
and adverse insumme risk.
Mi.&
VoteOutcoPne-Notto~auSel~e~with~hSXaXx2.
Retain cur objectivity.
1. Eemett W i l 1 k m - s prqject.
1.6 million needed.
Bennett Williarrs
is major tenant.
2.
Downtclwn Kistorical project w i l l prcbably be a joint venture
instead of a sytxiication.
.
Bob Larq reports on active participation p a r b s d uP.
Partnership investors and Financial Management Gmup to have a
g
gm
p structure. W i l l pass alcslg 99% of tax lcsses to
rs. Financial Managenwit Gmup to keep 10%of cash f l m ,
20% of back erd. Designsd for investors with joint inam2 urder
$100,000, for single irdividuals w i t h inxme under $50,000.
3.
C.
Satellite Offices
1. Columbia, &tryland
a.
Barry has a m t a n t , attorney, mortgage broker, insurance

agency an3 real estate a f f i l i ates....nwving along well.
a.
W e are lwkhg to develop a Harrishmg office which could

include F e t e r Labella, Davidwn and Valencia and a miscellanecxls grarp of brakers caning fnxn E.F. Hutton and Merrill
Lynch.
b.
3.
A.
Frojected time frame six months away.

for offices.
Olrrently looking
Reading, FFmSylMnia
a.
Rich Podlasek. Close to recruiting Bob Caukins. Reports

of a large grcllp of
.I people m t l y w i t h Hackett
-/Dealer.
a.
Jerry try*
to recruit Bab JWmxe and Ben Clements
Report on trip to HBC
1. Barry Schttler; no problems e m z m t a d thus far that he h m s

of.
2. Jerry Bmrero; HBC staff is themajorpmblemarea. IXle
Diligence L&prbmt is very week. Pmducb
to be available
kut is light.
3. KenRay; H B C l a c k s ~ i e w e d t r a d e r s . OaYzrnedabartHBC
being unable to serve the brokers business. Wants a detailed
p-of
howtorectify~~ctradingpmblemswithatimeframe
for capletion.
4. Questicm. ShaildwestaywithHBCorreapencnxsearchfor
alternatives?
a.
Decision. Tu work
inthreemonths.
pmblenrs and reassess situation
K E N N E PROPERTY
~Y
CORPORAT~ON
A Subsidiaw of Kennedy Health Cars Foundation
May 6, 1987
Mr. Stan Caterbone

1755 Oregon Pike
Dear Stan:
This correspondence is to address our previous conversations
regarding the refinancing of some commercial real estate that I
am currently managing for Kennedy Property Corporation. At that
time, you had requested information on each of the buildings so
as to determine the feasability of this endeavor.
Of the four properties listed, three are owned by Kennedy
Property Corporation and the fourth is owned by Professional
Medical Management, Inc. Both companies are subsidiaries of the
Kennedy Health Care Foundation.
Enclosed you will find a description on each property. This is
accompanied by the current lease schedule for each property and
an income statement for Kennedy Property Corporation.
If after reviewing this package you believe that favorable fixed
terms can be provided, please contact me at your earliest
convenience.
Sincerely,
Michael Lawson
Property Manager
ML/~
Enclosures
P.O.Box 1015 ' 100 Egg Harbor Road ' Turnersviile. N.J. (W012 ' 604589.3300 Ext. 421
8'
MICHAEL LAWSON
Property Manager
P.O. rn 101s
im E Q nubor
~
M.
1wmn.Il..
WJ mot1
Richard P. Sllva, CLU

Regonal D~rector
May 12, 1987
Mr. Stan Caterbone

Eden Park I1
1755 Oregon Pike
Lancaster, PA
17601
Dear Stan:
Per our conversation I think it is important that I shift the responsibility for contact to you. As I stated my time is as valuable as yours
and I cannot justify continual contact without a reciprocal effort.
Should you choose to access Alexander Hamilton Life as a general agent
for maximum support and compensation I will be more than happy to discuss this with you, however I do not feel that we should pursue any
conversation until you are in a position to make a definitive commitment.
Richard P. Silva, CLU

jah
In atterdance: Mike Hartlett

Bab Kauffman
m m
Alan Loss
Absent:
Stan Caterbone
Concern wer relationship with Hib$ard
W O N :
I.
BraJn
Corp.
as a Ebmkr/Dealer.
Should Financial Management Group (FM;) be affiliated with them.
p5TING OPENED BY BDB IGWmMAN

A.
LDok a t all d o n s .
1.
Wty. Hihbard BImm Corp. (HBC) waild offer 20%ownership in

the Bmker/Dealer and 24%of UCC. (The parent). 'Ihe UCC stock
is to be used for national recruiting who would not be directly
awned by FIG, kR FM; would have partial clwnership.
3.
High degree of input into w r p r a t e decisions.

sst on the board.
4.
We waild have a
'Ihey inlicated that they should be able to service our
business.
B.
Risk i f we leave HBC.

1.
'Ihe core of planning shqs in the n a t i d wrpbratian auild be

i n danger due to their decision to stay where they are as
opposed to mning w i t h FM;.

2.
3.
C.
'ItyO
R k e n t h l loss of revae. FM; could lose $1,000,000 in G U if

Schutler,
(as an individual), Rdlasek, and Tucker would
not cane along. lhis wnuld result in a loss of reverrue of at
least $5,000 per month, $60,000 per year.
of leverage when M i n g w i t h a &oker/Dealer.

risks i f we stav w i t h HBC.
1.
'Ihey do not service our business - we wculd lose people due to

poor servics and lack of responsiveness.
2.
We would not build our hiness as fast as we would like to.
D.
!Be board aarees to divide the issues into
1.
mvoteonwheulertostaywithHBC.
2.
Tu loak a t other &oker/bder
two rarts.
@CUE.
Are we m i n g fozward o r backward and is the Broker/Dader

going to help help us o r hurt us and for
lcmg?
Bob Long;
Bob K a u f m ; Can we continue cur tusiness day to day? Y e s . But it

w i l l r q u i r e mre of a x daily inpt and personal managenm-lt.
BobKauffman; mlathashappenedinthelasttendaystochan@the
boards decision t h a t ms reached in the extended
dated May 5, 1987.
Alan Ioss;
Gave perspective of joint meeting in Maryland. Was

amcemed about the lack of cammication between Fete
Hibbard and Rick Fwcm. H e f e l t there was alot of
disorginization w i t h HEC but ci-~a positive note he feels
like they wanted to work things cut.
E3Zb Umg;
Indicated that he sees the securities area as k i n g the

focal point of our pmblem. He doesn't perceive there
to be a servicing pmblan w i t h M u t u a l FU%~.S,Annuities,
etc.
Alan
Again poses w o n ; Do we have other alternatives to a

Braker/Dealer?
k6.S;
Bob Kauffman; Y e s , we have Planner Securities C;roup (PSG), Financial

Service Corporation (FSC), an3 Integrated Rsowces.
ooncernedabouttheduediligenceatHBC. Aretheystrong
enough t o do local d c a t i o n . Why wasn't more due
diligence done in choosing a Em&x/Dealer.
Alan Loss;
Mike Iiartlett; Basic question is where are our priorities? Do we want
.
Bob KaufBnm:
maxinun service o r maxinun equity participation.
What is
mostimportant.
reason for o w choice of HEC was in direct response

to our stock brokers not wanting to leave Secwities
(Xlr
setuemerrt Cow. (SSC)

,
111-
Omgon Pike Lancashr, M 17601 717-569-5555
b v i d R. Schod, President
Bennett Willians, Inc.
30 East King Stre&
Office ax 1364
Yak, PA 17405
Dear Dave:
Enclosed is a prcpsal for ycur splicaticn. Please go wer its contents and
mi*,
we sharld get together to discuss the project
in person. I will be away until the 18th of May.
wfw you are finished
I lock forxmd to hearing frcw ycu.
Stanley J. cat333xme
President
SJC: lmk
cc: file
Robert J. BeNer, Jr.
BENNET WILLIAMS / SYNDICATION
11. Services and functions of FtG, Ltd.

FtG I and Bennet Williams
111. Structure of Syndication
IV.
V.
Costs of Syndication +Financial S e

4krwd-t d :lIh m s
Financial Senrice Center
m6.
center
SCOPE OF
m s m
The following is a proposal to Bennet Williams, Inc. to pmvide the

syndication and marketing of the 1.5 million office building to be constructed
i
n downtown York, PA.
This proposal is an attempt to describe the role and
function of Financial Management Group, LTD (FMG), the Syndicator, Bennet
Williams, Inc. the General Partners and FMG I the Limited Partnership.
The purpose of the project is to raise the necessary capital
approximately 1.5 million (excluding syndication fees) and to m g e the
partnership through its, tirety until it is dissolved. As per previous
conversations, the b u i l g i l l be fumle3 conpletely f- pprcceeds
without using and debt, 'ch will provide a steady stream of income, projected
to be between 9% - 12%,dth the possibility of refinaxing the project around
the seventh year i
n order to return the original capital back to the investors.
L-
that
FMG will also consider developing a Financial Sexvice Center, similar to

wkj,
r-n.~ts & - > k c * .
WLCI'LC B - L +
U:((?-I WilL b C
icka d d i
yorh.
:<
~ I G Y C I
'
JCQ,C
-b-u.rj/lw c r p , n
eY
7)
~ A L Q~
-J-
( l Ci
U L S ~ ~ C T
~ j $ ~6,~r1 1 n c s r
11.
FUNCTION OF
BENNGT WILmmE
- mE GENEmL PARmEE
(G.P.)
The General Partner (GP) w i l l be responsible f o r the folliwing:
A).
Development - The G.P. w i l l be responsible f o r a l l development

involved in the project.
B).
construction
C)
D).
- The G.P.
w i l l be r e s p n s i b l e f o r all construction
phases associated w i t h the project.
Leasing All leasing r e q m n s i b i l i t i e s w i l l be of the G.P.

The
G.P. w i l l have the task of obtaining 100% occupancy of t h e building
in a reasonable and timely fashion. The G.P. w i l l also be
r e s p n s i b l e f o r determining the f a i r market value of the space
and f o r a t t r a c t i n g a t t r a c t i v e tenants w i t h favorable leasing
agreements t o maintain a favorable and healthy cash flaw.
Management - Tne G.P. w i l l be rspmsible f o r the rcanagement of

both tenants and the building in order t o obtain maximum
appreeiati-+the-proje&-forAuhrcprofib
fukre
/I'
r c c : A ; o - yiven
Guersbte
\ n co me
~ C . , - . O ~ C L
co cd;
h o e 5-
11.
FUNCTION OF
BENNGT WILmmE
- mE GENEmL PARmEE
(G.P.)
The General Partner (GP) w i l l be responsible f o r the folliwing:
A).
Development - The G.P. w i l l be responsible f o r a l l development

involved in the project.
B).
construction
C)
D).
- The G.P.
w i l l be r e s p n s i b l e f o r all construction
phases associated w i t h the project.
Leasing All leasing r e q m n s i b i l i t i e s w i l l be of the G.P.

The
G.P. w i l l have the task of obtaining 100% occupancy of t h e building
in a reasonable and timely fashion. The G.P. w i l l also be
r e s p n s i b l e f o r determining the f a i r market value of the space
and f o r a t t r a c t i n g a t t r a c t i v e tenants w i t h favorable leasing
agreements t o maintain a favorable and healthy cash flaw.
Management - Tne G.P. w i l l be rspmsible f o r the rcanagement of

both tenants and the building in order t o obtain maximum
appreeiati-+the-proje&-forAuhrcprofib
fukre
/I'
r c c : A ; o - yiven
Guersbte
\ n co me
~ C . , - . O ~ C L
co cd;
h o e 5-
'Ihe follaiing is a description of the structure of the partnership. ?he

Partnership w i l l be registered by the Securities and Exchange Carranission a s a
Private Placement Regulation D, W e 144 Offering. ?his w i l l limit the number
of investors t o 35.
A
Bennet Williams Inc.
FIG, Ltd.
-s*W
- General Farher
P v l o r - k j l h ~&S
,-Equity: '26% ok
Income:
5%of N e
/
Equity:
ItIcome:
LQM :
75%
75%of N e t Proceeds
88% of: a h go- )-+a acb-l d e v c l y ~ c ~ t .
IV. COST AND FEES
m , ~ t d . w i l l receive
of the
-,1;?n~associated with
capital raised in order to perfom the

the project.
This includes all legal,
accounting a n d m & % i n g fundions needed.
necessary
77
cd ;,la f l c o c L - ~
w i l l go in;*
y a c
/jlThis means approximately 88%of the-&capital

This
includes
a
l
l
legal,
accounting,
printing, wketing, e+mc of
W
i
p
u -(
b " ' & & @ ~ i ~ -h-tt,r;,
ht-io. $(\L pJrLVM
W:LI
hC
-the ' * o l t i ' u ~ ~ k e ~a~,IbU~ Je ~ ,,?L ~~ ~ " ~ b - j .
'11 I
FEiANCIAL SERVICE
cmmm
Financial Management Group,

will
t o develop a Financial
Service Center similar t o the lancaster Office in the building being
syndicated.
FMG has develop a N1 Service Financial Center that provides a l l
of
the relative services necessary t o manage the financial a f f a i r s of
individuals,
businesses and institutions.
The Center w i l l include the
following sevices:
1.
Financial Planning
2.
Investwrit and Portfolio Management
3.
Accounting and Tax Preparation
4.
R e a l Estate Services
5.
Legdl Services
6.
msrance services
7. Inves-t
and Mortgage Banking
Financial Management Group, LTD w i l l structure the Center similar t o that

of the Iancaster location w i t h the exception t h a t Bennet W i l l i a m s w i l l have a
role in the formation and the operation of the Center. F E w i l l provide the
recruiting and m g e m e n t of the operation and w i l l use the current system
that have keen developed and used in Lancaster.
me ownership w i l l be
structurd among FMG, Bennet W i l l i a m s , and the other Major Players that wish t o
get involved.
Enclosed is an original Business Plan that outlines the concept
in
m e
detail.
HIBBARD BROWN
&COMPANY,INC.
May 11, 1987
Mr. Stan Caterbone

Eden Park I1
1755 Oregon Pike
Dear Stan:
It appears as though we keep missing each other on the
phone. This is a short note just to advise you that I am sending
up a list of the standard items that we request when we do due
diligence on a private placement.
The reason for my wanting to contact you before sending this
list is that at the present time I am unsure of the structure and
nature of the offering.
I would like you to provide me with the
following:
1. Who is the General Partner?
2. Has counsel for the partnership been chosen? (If not, I
would prefer to make a recommendation to insure speed in
completion of the documents.)
3.
What is the structure of the offering (public, private,
Reg D, 504, 5 or 6)?
4.
Has an independent accountant been obtained?
5.
Is it your intention to take down the whole deal?
If
we need to discuss this matter on the telephone.
necessary,
we should make an appointment for that
phone
conversation.
I will wait to hear your response to these questions and
look forward to hearing from you.
Sincerely,
Ti?/.Richard P. Brown
President
Menzh.r N A S D
M e n h ~ rSlfC
7855 Walker Drive

Suite 620
Greenbelt. Mayland 20770
(301)220.0111
May 11, 1987
Mr. Stan Caterbone

Eden Park I1
1755 Oregon Pike
Dear Stan:
I was unable to reach you today by phone, but felt immediate

communication was important enough to enclose this short note in
a Federal Express package already being sent to your offices.
I
I became fully aware of your proposed date to have the York

Private Placement on the street at our joint meeting Friday of
last week.
Having put together several private placements, I am sure

that we can meet this deadline, if we coordinate our activities.
I look forward to hearing from you as soon as possible.

Sincerely,
President
UNIVERSAL
"."
May 14, 1987
Mr. Peter Kit$ard

~Brown&Ccnpvvly
7855 W
W Drive
Greenbelt, Maryld 20770
Dear Fete:
As ycu h-w fma cur phone amversation, I feel very poorly about the
Fm; Board of D i r e c t o r ' s decision to leave Hibbard BraJn. Neither
Mike M e t t or I shard the feelings of scmne "key pxducersl1 that
lang-term service shortfalls would exist. We also felt that your
people were bath amptent and intemsted in providing good mice.
Given time, our feelings were that ycu wculd be able to semi= the
needs of a hiqh volume office.
I am very concerned about the attiand mrale of your people
n q a r c l i q the x x x x n t ixrn of events. It wculd be ,wen mre unjust of
Fm; to leave the olblameolon HB anployees for pmr service. In my
opinion, there existed an ovemcsction to sane system @lens w i t h
mch relationship unlerrrmung by PIhad persanal
considerations in mind. mat is a l l !
..
.
I
I believe that I did my level best to avoid the votq and I also did
level best t o m a v t h e v o t e . I r e g r e t t h a t I failedandthatmy
me lrmst be associated w i t h the deckion d announcement
Correspondence.
A t this tine, I am so^ throughthe feelings and
messages sent to nre in this action. I hope you can urxkstand and
that your staff can also I1I.derstand.
I give you my best w i s h e s for the future and believe yau w i l l succeed
i n proving this to be a bad decision by FlG.
Robert E. Kauffman
SC'IDCO PRODUCTS GO.-4Contmued)

mlas!.c
Consumer Video RWUZUh v . (I)
Sack Dn I11
*,,om
5a"l Dnr
Park R w . NJ 076%
T l l W1-9301WO
Son vde. ems
3651. YX(. 267s
Ovrm N a U iF7es.J
~.l.r:
.-
.87CO1I
Coml%nen!alFtbre Drum (1)

R?. mtr. 18% P--.v
R.. SU.
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Usnena. GA -7
F h . sums
5.1.c: 3079
7 C C.mm
0M.lo":
.
I t M I I
Consumer S.kLhv. (1)

15 E-.
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10" V.P. 4 G.n W.)

-t,.
l e a . Packaging. Inc. (1)

P C 00. AB
C d r r mm a 9
1.1. -73-35
F'rCl,"*Ssnrt*e
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G M Sum i. t n Urn,
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s.1.c: 4011
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D. M. D".ry
R. C G - % ~ .
0 Wax 428
SUI.rmlk. m: 2 8 6 n
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wart. P W
4
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P.O. Boa 530. MO Soo ~ r r L %

Mnnrmb. MN 5 % ~
Tm: 6 1 1 . 3 ~ 7 d w o
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a
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EW. 7 x 0
PVVM.1007652
T* : 10l.360.Ym
.tMI1
Paper Stak Dealer.. Inc. (1)
s.1.c; 2291
Oennlr M tavanaugn
Russell Cleary
John H. Dsnaelr
Gwrge H. Dtxon
Rsnald K. Gamey
Roben C, Gtlmore
F. 1. Heliell8nger. I1
Burleqn E. Jacobs
George W. Mead. 11
W~llharnG. Pnciilpr
W811tarnW. Sltnson
Donald F. Swanson
W l N l ~ nR. Wallm
m.511
0b.r
a,m
~o.,Oom
SORG PRINTING CO.

~
111 8 t h Avo.
New York. NY 10011
Tel.: 212-741-6600
~
L Narrih.1
NY
SOR W O T C )
CCmpDnent PIOM~IS Lhv. ()I

9 w 57m sr
.(MI5
.. -. ....
9s.: 166.544.272
-OX.
~r r a . NV I ~ I S
li.nn F m IR.rI
F,scaI Yearend: 5131186

mnun of Fwmlal. Cqmrsle. m
~eg.1
uments aria Forms
S.1.C: 2751: 3555: 2752
Galben B Soro n7nm ad
-., I
Roy A. Cardi;(&es.)
Harold Cmney I E x w V P . 6 SKI
Boc
E m 490
r
l .no
Johnh MonNUI
Sow Magnetic RoduOI Co. (1)

t.-
SONV CORPORATION OF AMERICA

(Wholly-Owned Sub. of Sony Corp.. Tokyo.
Japan)
Executive Headquarters. S W. 57th St.
New York. NY 10019
7el.: 212-371-5800
NY
Nat(onal Opera. Headqtr.
Sony Drive
Park Ridge. N J 07656
1 el.: 201-930-1000
SriE+NYSE
PS Bo Ci MW Ph Ts)
Assets: S5.345.%7.0~
LlabLlrs: 13.132.561.000
Nef mmn 12.212.9BO.000
W r O r . Sic: S6.701.816.000
Enp- 43.000
Mlr 6 S k r 01 E * N D n r r Equrp.. lnrmmmtr 6
,,,M,,
Z R Z .
0,656
- 201IJa1030
Jd'a
lRul
1
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1
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..
lkncer
S.I.C.: 3679: 3651: W:

5065
N n o Ohga (Uun Bd.)
Kenp T s v a (Chm 6 -1
EJT 0111cer)
Nw' Vander Dusren (Rar 6 Chel Opn, On-)
V ~ z h a dE a r (EIBC. V P.&)
Flben h l l s n (Exec V P)
Kocht Twnda (Exec. V.P.+s.
6 E m )
John Slerr. (Sr V P - H v m n RewnrcnJ
J Ph8l.p SUci 19
. VPJ
Kennelh Nees ( V P 4
. Sec)
Chns Wab. N P G M . Refs 1
F.a.l* LEMn W P 6 Gen Cnnrrer)
WrMrlrrm
C o m r n u ~ ~ ~ at M
, . )s
Y a u a b TUV*I W.P. 6 dma;.)
Board of Dlrtnom
Roben L. sorp
Eugene Blanc. Jr.
Eugene Bkm. ~ r .
Ncholas Cawto
Roy A Cardta
Dons S Cunnlon
DOM P a e r s
AIben W. VanQ
.
I
-
S O 0 LINE CORPORATION
56% Owned by Canadian Pacific Ltd.
Soo Unt Bldg.
MinneaooI#%MN 55440
-. ~.
Ma1ling'~ddiess: P.O. Box 530
Mlnneapollr. MN 5 s u o
Tel.: 612-347-8000
MN
SOO-(NYSE)
&see: S1.138.205.m
Lntdrles: S830.327.m
Net Wath. W7.878.000
A p m Sk.: 161757OWO
Ew: 73x1
~ransmtsndinp
bn+av
S.1.C: 4011: 6711
DQnrvS M. Cauamnruph (avn 6 Qref Ex-.
~
SOUNDESIGN CORPORATION
Harbor Financial Center. Plaza T w o
Jersey Clty. N J 07302
Ttl.: 201-434-1050
DEArrefs: S74.132.~0
Llab;blder: S40.902.m
Net W m h : s33.230.m
WO..
s1s.: I2W.OOO.000
E w yK)
Mlr. OT T~~YSIOI
Rad'or 6 MW WS.
S.1.C; 3651: 5064
Sad E. *mh.nui KXM. Exec ccmmnee)
Ehl Ashkenam l h . M. 6 Chel Oper m-)
M. Franco (PIC)
R&n
Wuur ( E x e c V.P.)
H. F r a 1%
~ VP.)
C. Chraime (SI. V P 6 TreasJ
S. Lanudo (Sr. V.P.1
Thomas Gtsena ( V P . - M m n . 6 ParoMcl a,)
h a r d Kkln 1Sec.J
AIben Hamay IPu. Dr.)
mlrrr,
r S e x Mlg. Co.. Inc. (I)

51.
EhaDClh NJ O7X16
T * . 201.3552110
C1.c~
2651
.'"(U1
107 1,-l
(100%)
socpe of Pmject
m k e t i r g and Distrikution
Financial Prcposdl
amtracts
'Ibny m i m i
and F t x e r Station
~roiectsin the entertairmrent irdusby that the Business World
mast
has wer seen.
Ihe fascirratbq elements of
A).
Wical Overtcn=s
B).
~ 1 o g y
.
D).
C)
this project are as follows:
m k e t b g ard D i s t r i h k i c n
Limited DJrJrside Risk B t e n t j d
W h a ycxl prt
in any business v
all of the abwe elaoents tog-
have a vezy s t r a g and paJerN entity.

' of the largest ard mDst visible
is about to undertake one of the
Naw, prt the abwe elements in o m
htertairmrent
W i e s available ---the
-.
We want to pcsitim Scmy as the primier ~a~

EsuipPent
Vi&o
of P r o f e s s i d
in both the RemrdIndustryardalsotheTbeatricaland
B3ushy as s e l l as Television arrd Pay T.V..
In additicm and even uore
inportant we waiid like to credit Scny w i t h omtrihtiq in the develcpnent of
the Scny-
Digital
Ren,rdiq System that w i l l recoFprized
World by way of several different medium e q c s u s .
the
lhis will have
effeds in the bay of jmreasd sales in both the C l x m m e r m level as well
as the Professianl E n v i s m e n t .
In the f o l l d q paragraFhs I w i l l address the abzwe elements an3 pmve
to-rt
thepcrtential for this project.
wa,s developed to help Wmy
'Ihe m v i e
in
Marts
the
hdustry to captxre ather k d w b y ' s that are
- theatrical, televisicn an3 cable, video,
aanplimentary
rmsic
mi6 take his mtive ard &us
el&cs
aocanplishents in both -logy
Wmy's. track reond ard
of
Because
~
an3 nusical prducticn
aE
Dmy has used the s a nusical

~
format for their f i r s t a l k m as he used
hasI
sold nine millicn alhms thus far
for Bn Jwi, *&
- Bon Jovi!
of his latest band French
film already will have appeal t h r u q h the fed-
Lick.
intennticenl film ard
ever
n, dllxrm has
sold nvre alhms in its f i r s t six ucmths in the history of the recon3iq
I
kbstry.
Because of
saxe
rmsical
the timirg of the a l h x m - w b i d l w i l l
the two sbaild anl w i l l ccnpliment ane another vezy
'Ib further the mrktzbility of the picture he w r a p d
profitably!
horror script
'Ib add
the
okritiffil"
Minfluencing the audiences.
the f i r s t wvie ever w i t h a
finther to the project, Tcny w i l l
digital sand txack fran set to theatre arrl video.

mst
this into a
- w i d e s t mrketability due to intennticanl d k k i h t i c n - an3
that will plwerrt
an
aaninate the
anyme else 190% of
This tectylology a l e wmld
the total budget just for the s a d prrducticn.
rmis is W h e n t h e p j e c t g e t s i n t e r e S t i n g a s f a r a s ~ a n d d i s t r ~ c n
isculzemd.
Because of
xarkthg
the exclusivity of
ad
the te&nicdl
r l i s t r ~ a nsbaild be pxerful
mrventianl deals.
arr3 the
elacne
in even the
'
the
,
nost
lmxEmxz AND
DlsTmmrION
Ncw lets take this project and look at it with 5-:
to biu e1eQmt.s:
a ) . Video
b)
T h e vi-
utren
yrxl
D i g i t a l r6mrd.k~ard playiq
inaustry is a 56 billion dollar
'
' ,'
y that
is in need of product.
lmk a t the patentidl for a prcduct that w i l l be the first a d a d
prduct that will canpliment the fast paced

w i t h a rmsical
-re
~~Fsltertainmet
that m y have emmgh d t s of its am-ym
have an
arnazirg p b m t i a l for d i s t r M m ! !
- )
D i g i t a l an3 D i s c Irduslq has p
mrdi.rq ard playing in due time.
m to be the fuhrre standard for

Because of its newness, there are nore
m l e wfao have yet to hear the digital sm-d. Because of the visibility and
exposure that will cane fron this project-this
a u l d be the first time ever
pecple hear digital by way of theatre ard video! As to hckJ mmy pecple? 1
- 10
- 50 - 100 millian?
well, what w i l l be their first reactim? J NEED 'ID HTY A DISC PIAYER!
lheir
VIDEX),
reaction w i l l be I ~ T O H E A R ~ S a U N D I N M y N D L T ? V ~ ,
MXrIE,
a-.
W
e a
d likesmytocarnait fifteenmillion f o r t h r e e t o fcur future products
that will follm t h e s a n r e f o m t a s t h e ~ ~ ~ s o t h a t ' l t m y ~

sCply
w i l l p i t i o n tharselves as the picmeer ard leaders in the
-.
lhis
will mt allcu onpsitim t o gain assets to the marketplaoe until ue are a l l
fkmly situated ard profitable.
We w i l l also assist in any way possible in the

an3 video distriialtim.
of the theatrical
a 60 scxrd spot in the beginning of the video, ve will do

.Smy
d its r m t r W c m s to the Digital lY&stry and the differa-ce be-
a m v e n t i d and digital recordirq.
I.
The
spot will be a ~xzme-my w i t h nusic fmn Rpncfi Lick inthe
&
-
'Ihe Carmentary w i l l d i s c l l s s t h e S c i y / F S l 3 5 S a M D S Y ~ a n d t h e
cur pint the
pmrzss by uhid-l the FURE SaMD IS develcpaa. To

"Differern= '&st"
will be used.
'Ihe
mnreie
M?NCP1 will be pmnoted as
the~FeatmeFilmtousethisSystem.
11.
WEW#I
We w i l l
Sciy
a mxdmxlking canpign us-
rarket a N1 line of
the v i c b , (similar to Wp (amet),
KMGSlNTCN
w.
will offer a l m k d g e t h t profitable disc player to a l l
the video.
?he offer w i l l
be a t wholesale pri-.
of
Ihe reason for
the 1m
tudget prduct is that rn hcpe when pezple actually get to the store they w i l l
upsrade an3 tuy a t full retail!
Far Scny it w i l l a-tically

tedYlical aazmplkhmmts
inskute that Scny is -ible
fran the view of the audiervz
for TcPry's
- drich lby will
m t b e ~ w i t h . I t w i l l a l S o p m m o t e a l l ~ f S c n y ' ~ ~
-P
-
We w i l l alsn develcp a -60" scxrd spat to be used on telwision to p
p t i m project for both
Saty ard Tcmy
Eaqiovi.
m the
m. we
will also include s a y EquipnerrtinthePSlMSSystemsthatwillbe
n e w to convert the Theatres to the New Sand System.

T%atres
We w i l l amvert the
Free if the lheatre d t s to d-wdrq the next'MReElXNGIOVI
SSXKTIW.
This will give us a guaranteed ccPhirrued sqasure ard w i l l give
us guaranteed distritution for both
Say
Software an3 m j w i as.
We
will recwer the true casts of ecNA~7t

fran distrihtion profits frcrm the
films.
N.
We w i l l prochvm a 60 seaad stard alone cnmexial for television, cable
arrl theatre that will be used to pramte the project before the release of
mtant Mania.
--
eg\; A 60 seaad spot utilizing the follubq elements

1
a.
Frencfi \lick
b.
Rmx Station r e o o facility

~
c.
Sony8s r m t r i t u t m s to the mmufacturer of the equip=& to prcduce
thescum3.
A spat
'Ihismay sim~"~thedifferenoe**.
R-errfi Lick recording in Rxer Staticn for the -Mania
h e .
W e warld like to
to yu.~the Say/psa--give
"Now sit back ard let UE J a w i f
ycll
he&- the difference."
p
t warld you rather listed to when 1or television.
hpxt cn w h t it is.
to feature film: video, cable
ImFaLWJISING DEAL
Scmy will private label a "Tay E!mqiwinor
Statim line of e&prent:
a ) . Wevisim
b).
-S
ccnpahlent
c). Disc Player

d)
ViaeD Player
'Ihe above package w i l l include a free video
rebate f u l l price back to
--
of Mutarrt Wwda of whi&
Say
will
distritution.
' ' l b y arrl Stan will m i v e credits for complete line:
'lbtd will
be negotiated aftex we have an idea of Smy margins.
We want
touakeucmeyonlyif Sonymakesnmq!
W e w i l l also provide a m a r k e m package for a l l retail artlets that i

s naw
-m.
Tcny w i l l ~ 1 u d e i n c q T i g h t A g r e e m D J l t t h a t ~ E q u i p n e n t r m s t : b e u s e d t o b e
EnE.
Scny will
xwxive nQeditswon all video, theatrical, telwisicn, and
cable ~ ~ / s C SystemT
n y
l i n y ard Stan will also ~ v e ~ t s c n a l l s y s t a n s u s i n g ~

sold to other film stw3ic6
- Also to be e
d after w
i
n
s are figured.
the x e s a q quiprmt in all shdios. We w i l l pmvide a one day seminar to
thirty cp2J7ators of the largest theatre
-.
I.
S C g l y w i l l c n l y p a y f o r a p n s e s t ~ p ~ 6 O s e m n d s p a t s%myand
.
Rwet Station will utilize any anl all s e m i s
to help pxduce the spat
am3willallwreimbursaaentforcmlytruecostswithn>mkeup
e
.
x
l
wa l l of Tony's time ~&
11.
w i l l be free.
Rwet Staticn ard Rwet Productims I will receive a negotiated
w-
age of pzpfits fran all profits gwerated from the m x d m d i z i n g
e~
of the Scllypmdcck ard the sale thatmay result to other film st&ios
UtilizhqScllyequipoerRintheINSSystem.
m.
-\
W e will receive three sets of a full entertainment system
- Telwisicm,
VCR, Stereo, Etc. that is tcp of the line to help during the pm3ucticn
of the film to be utilized by Marcia, Stan and Scott.
IV.
Scsly
will have first right ard first refusal of all ard any d i s t r W o n
wets for theatrical, video, cable, and telwision qnticaticms.
We
willprcmiSenottOeventalkto~else~uefeelthatScnyis
not gokg to offer a fair and reasamble deal. W e w i l l give Scny a 5%
margin to gain a cmpetitive edge.
='=F=F'==
m
Thy
of the abave and all aspects of this Dedl is to let the
entities involved maximize their profits for their m
e talents;
in film an3 nusic prakcticsl d Scmy in mnufacturirq and wentxally
distrihutim of both equiprent a d
and later video and film
m m m .
Wid side mrkethg available after this pi*
thruqh chamrld anl =ia.
S a y w i l l b e o n m x d t s of the filmmrldwide BUS?
Rwer Staticm Digital to be shared with BIXS?
JOINT VEKPURE PAKTICIPATICN
AM)
C~RIBVTICN
The undersigned, intending to be l e g a l l y b o d , i n consideration o f h i s

&ssicn
as a p a r t i c i p a n t in the j o i n t v e n t u r e t o be known a s "POWER PRO-
DUCTIONS I" md r e c e i p t o f a p r o f i t / l o s s d i s t r i b u t i o n share o f
% of
such j o i n t venture, hereby d e c l a r e s ard ackmwledges h i s i n t e n t to p a r t i c i p a t e

i n such j o i n t venture and hereby m e n a n t s and agrees to contribute the sun of
$
t~ t h e c a p i t a l of such j o i n t venture, which sum s h a l l c o n s t i t u t e
h i s i n i t i d c a p i t a l account i n s w h j o i n t venture.
T h i s L e t t e r o f I n t e n t i s e n t e r e d i n t o by t h e undersigned u p n t h e
/
following general d e r s t a n d i n g :
Power P r o d u c t i o n s I w i l l b e a j o i n t v e n t u r e t o be
formed under t h e laws o f Pennsylvania, having t h e
s p e c i f i c p u r p s e to invest ( l o a n ) its funds to MUPANIA
PRODUCTIONS,
INC.
to
finance
p r o d u c t i o n o f a motion p i c t u r e .
such c o r p o r a t i o n ' s
The j o i n t v e n t u r e
s h a l l receive f u l l repayment o f i t s investment from

MVPRNIA PROWCTIONS, I N C .
b e f o r e the d i s t r i b u t i o n o f
any p f i t s to any party. Thereafter, t h e j o i n t venture

s h a l l r e c e i v e 50% o f t h e p r o f i t s from such motion
p i c t u r e , o f which 85% s h a l l be d i s t r i b u t e d to t h e
non-managing j o i n t v e n t u r e r s ( i n c l u 6 i i - q t h e unders i g n e d ) and 15% s h a l l b e d i s t r i b u t e d to S t a n l e y J.

C a t e r b o n e a s t h e Ranaging J o i n t V e n t u r e r o f Power
P r o d u c t i o n s I. The j o i n t v e n t u r e s h a l l have a r i g h t o f
first r e f u s a l to finance t h e next movie p r o d u c t i o n o f

MUl'ANIA PROWCTICNS , TNC. and/or 'XNY EXNGIOVI
The Lndersigned a g r e e s t h a t he w i l l execute an3 d e l i v e r a counterc o u n t e r p a r t o f t h e j o i n t v e n t u r e agreement (which s h a l l be c o n s i s t e n t with t h e

a b o v e g e n e r a l u n d e r s t a n d i n g ) and t h a t h e w i l l execute and del'iver all docw n t s required f o r t h e j o i n t venture to elect n o t to bF! t a x e d a s a p a r t n e r ship.
Contemporaneous w i t h the execution o f t h i s L e t t e r o f I n t e n t , t h e undersigned is c o n t r i b u t i n g 10% o f h i s t o t a l agreed c o n t r i b u t i o n , or $
'-)
-
W i t h i n f i f t e e n (15) dzys f r a n t h e d a t e hereof, time being o f t h e essence, t h e

-
undersigned s h a l l c o n t r i b u t e t h e 90% balance, or $
Such c o n t r i -
b u t i o n s h a l l be h e l d by S t a n l e y J. Caterbone a t i n t e r e s t , pending a m p l e t i o n
o f all n e g o t i a t i o n s ard execution ard d e l i v e r y of
PRoUlmIOLJS,
2ii
documents w i t h MUTASIA
m.
I f s u c h n e g o t i a t i o n s , d e l i v e r y , and execution &e not m p l e t e d within
t h i r t y (30) days a f t e r the f u l l c o n t r i b u t i o n is m d e , the e n t i r e c o n t r i b u t i o n ,

with all i n t e r e s t earned thereon, s h a l l be returned to t h e undersigned without
den&.
S t a n l e y J. Caterbone s h a l l be r e s p n s i b l e f o r c o l l e c t i o n , r e c e i p t ,
i n t e r i m i n v e s t m e n t and management, and ultimate investment or r e t u r n o f a l l
f d s c o n t r i b u t e d , and s h a l l be t h e Managing J o i n t V e n t u r e r o f t h e j o i n t
venture.
The u n d e r s i g n e d h e r e b y a u t h o r i z e s and e n p k e r s S t a n l e y J. Caterbone to

n e g o t i a t e , e x e c u t e , and d e l i v e r a l l documents n e c e s s a r y or r e q u i r e d t o
implement t h e j o i n t v e n t u r e plr~oseand to take all o t h e r a c t i o n s and n q o t i a t e , e x e c u t e and d e l i v e r a l l o t h e r documents n e c e s s a r y or d e s i r a b l e t o
implement or e f f e c t u a t e the j o i n t v e n t u r e p r p s e .
SIGN
(L.S.) Date: W y
tWE:
-,1987
PRINP
NAME:
STREET
F.
ADDRESS:
CITY:
STATE:
ZIP:
RICHARDC. FOX,PC.
ATTORNEYS AT LAW
1015 ROBERTS VALLEY ROAD
HARRISBURG,PENNSYWANIA inlo
RICHARD c
mx*
('ADMllTED ALSO M R W
May 20, 1987
M r . S t a n l e y J . Caterbone
FMG Advisory, I n c .
Eden Park 11, 1755 Oregon P i k e
Lancaster, PA
17601
For P r o f e s s i o n a l S e r v i c e s rendered i n c o n n e c t i o n w i t h
Power Productions I , i n c l u d i n g c o n f e r e n c e , p r e p a r a t i o n o f
Letter o f I n t e n t , and e x p r e s s m a i l i n g , .and follow-up t e l e p h o n e
check.
Professional Fee
UJP.S.
250 .OO
8.95
FLATBUSH
FIlMS,INC,
May 21, 1987
Mr. Stan Caterbone

1755 Oregon Pike
Lancaster, Pa. 17601
Dear Stan:
At your request I've investigated the requirements of the Completion Bond.
Bert Schneiderman of Worldwide Completion Services in New York
has given me a figure of 5$%, excluding contingencies, with a
50% No Claims Bonus. Since Bert also owns BonBon Payroll Service
he has agreed to waive the payroll fee if we use their bonding
service.
Requirements: They need copies of the budget and/or production
board, resumes for the director and producers as well as copies
of their contracts and any other production agreements which
have been completed.
Further they need to know when we will commence principal photography, editing location and if we intend to have a distribution
deal up front.
I spoke to Jerry Vandersonde and Bill Hudson of DeWitt Stern Insurance in Los Angeles, who were recommended by Worldwide. Since
I couldn't show him a budget or a script we did some educated
guessing and came up with a figure of approximately $75,000. The
Production Package policy should include: General liability, cast
insurance, negative film, faulty stock and camera processlng,
props, sets, wardrobe, rented equipment, extra expenses, third
party property damage, non-owned auto, Errors and Ommissions
including a one year bond and a minimum workmen's comp policy
for anything that is not covered by workmen's comp.
I understand you're going to Wildwood this weekend. We need to

house a crew of about 60-80, production offices, catering service.
We'd like to get as many free extras as possible and need high
quality promo type giveaways. For screen credit, of course. If
you have any such contact we'll need mutant dolls (500?) and if
you can help bring down location costs that would be great. I'm
talking about beaches, amusements, the pier, parking facilities.
Probablv k 7 ~ ' l . jh?r,-?:e t h ? t '- '.-; r e:.:t w e e k m e n w e czn talk in ..
- 1
person.
4334 STERN AVE.. S H E R M A N
1818) 995-3417
FLATBUSF LMS,NC,
May 2 3 , 1987
E l l e n Libman
Power S t a t i o n , I n c .
4 4 1 West 5 3 r d S t r e e t
New York, N.Y. 1 0 0 1 9
Ms.
Dear E l l e n :
B a r b a r a a n d I h a v e mapped o u t a s k e l e t o n s c h e d u l e f o r o u r t r i p
t o N e w York a n d I t h o u g h t I ' d s e n d i t o f f a n d see i f i t w o r k s
f o r e v e r y o n e e l s e . By t h e way, w e ' v e d e c i d e d t o s t a y i n N e w
York u n t i l T u e s d a y i n s t e a d o f Monday as o r i g i n a l l y p l a n n e d .
Thursday
A r r i v e a b o u t 3:OOPM. You h a v e t h e e x a c t t i m e
s i n c e y o u ' v e booked o u r f l i g h t s .
Please let
u s know i f someone w i l l p i c k u s u p o r i f w e
should take a t a x i .
W e ' l l come t o Power S t a t i o n a n d g i v e you a n d
Tony c o p i e s o f t h e s c r i p t a n d b u d g e t w h i c h w e ' d
l i k e you t o r e a d Thursday n i g h t . .
B a r b a r a a n d I h a v e a d i n n e r m e e t i n g w i t h a Director of Photography.
Friday
Leave f o r New J e r s e y i n t h e morning. D i s c u s s

s c r i p t and budget.
Meet Mayor o f Wildwood and b r i n g him a s y n o p s i s
o f s c r i p t which h e h a s r e q u e s t e d .
M e e t w i t h Steve Garelick, t h e P r o d u c t i o n Coordin b t o r o f t h e N e w J e r s e y F i l m Commission.
Look a t l o c a t i o n s .
Saturday
Sunday
S t a n C a t e r b o n e a r r i v e s i n New J e r s e y .
M e e t the
r e p from Maury's P i e r t o d i s c u s s l o c a t i o n costs.
Check o u t h o t e l s f o r c r e w a n d c a s t ,
Monday
L a s t m i n u t e d e t a i l s i n New J e r s e y .
L e a v e f o r Mew York a r o u n d noon.
M e e t i n g s a t Power S t a t i o n f o r f i n a l d i s c u s s i o n s
a b o u t s c r i p t , budget, c o n t r a c t s , etc.
Tuesday
Tuesday A f t e r n o o n
L e a v e N e w York a p p r o x i m a t e l y 4FY t o a r r i v e
i . c r ?..nc;i.i r , . ? b o u t $FbI.
.
.
C,lk
<~ i n planning your schedules.
- -.7
7
4334 STERN AVE.. SHERfd4IL OAKS. - P i
cc: Stan Caterbone

Rarhara
PO+-T<
(SlS] 975-3Si7

Oregon Pike
Lancarter. PA 17601
717-569-5555
Table O f Contents
)
.
Section I
Financial MaMgement
Section I1
The Project
Section 111
Distribution and Structure
Section IV
Grc~lp
Bart>ara Peters: D i r e c b r / W r i t e r / P r m h c e r
Barbara has directed many prograros such as "Matt Hcuston"! "Falcnn

an3 Iacey', , "Misfits", "-erst',
and l'Remulgton
Steele" to name a few. The film Barbara direct63 that convince3 Tony t o
hire her for this production was "Hummids Frau The Deepw. Mrmanoids w a s
made in 1978 for $ 980,000 ($ 20,000 under w
e
t and f a r days ahead of
schedule) and gmssed over $28 million in danestic and foreign theatrical
Sales. T h i s was
a period in time when the video market was in its
early stages of ~~~~t. A film released today that would gross $ 28
million i n 1978 dollars has wen greater putential for a much highex gross
w i t h the strong video market that is available now. What i n p m Tony
the most with E?a&aa1s
direction of IEsMnoids was her a b i l i t y to bring a
high degree of quality to a film on SG& a limited hdget.
Crest1', " C a q n q
6urw
Peter H o c k : Stunt Coordinator/Actor/Wmtmn

Peter's &ts
include f i l m such as, - 1
Places", "Stepford
Wives", "To K i l l A Cop", " G h c s t Bustersw, "FX", and a host of other Films,
Broadway, Musicals and Television Shows.
?here are many factors which mnixibute to a projects success. If you
w e r e t o take a cross section of themovie industzy to find w h i c h types of
projects w e r e most likely t o succeed, you waild find that w i e s in the
two to four million dollar range have rmch greatex chances of success than
wies in the ten to fifteen million dollar range. T h e reasons for this
are quite simple. A movie in the two to four million dollar range is a
hi@ enough budget t o produce a quality film but limiting the r i s k t o the
investor since it needs less of the market share to prcduce a profit.
Horrvr nwvies, from the investors point of view are the safest type of
m i e to finance. Horror movies have an dLmost cultist follwing. m e
type of audience t h a t attend homr 'movies rarely wait to see what the
critics have to say ahcut the movie. There is a fascination with gore
that this audiens would rather see than have described to them. The
overseas mket for movies of this genre are ~
0
~ In salmost
. all
cases the grass revenues frcan the theatre, w i l l be greater werseas than
in the d-ic
(US and CaMda) market. mis especially holds true for
horror wies.
Over the l a s t few years, we have h e n seeing a trend for wwies t o have a
much heavier nusic score than in the past. The feelings that can be
invoked in an audience from audio are sanetimes as great o r greater than
the visual aspeds of a film. W i t h Bongiwils m i e n c e and past track
record, w e are assured of having one of the best quality sound tracks to a
mmie ever made. 'Ihis prcduction d d very well revolutionize the mavie
hhstq in t h a t this w i l l be the f i r s t time t h a t the sound track w i l l be
totally digitized from the set to the theatre o r home video. W h a t this
means is that the quality of the sound, w h i c h is typically extremely poor
i n a movie theatre o r hoane video cassette, w i l l n a be
~ trewrd~~~ly
crisp. 'Ihis new mavie sound w i l l be similar to the quality you would
expect fmm a laser disc. Nolmdlly the costs involved to prcduce a movie
w i t h this type of sound track would greatly increase the budget to a point
where the project wnuld have an increased element of risk. W i t h Rmer
Station, w h i & already has in place state of the art equipat, sane of
which can be f
a i n only one o r two other studios i n the world, this
sound track can be prcduoed for a fraction of the oosts that another
prcduction wmpany a
d have to pay. This greatly reduces the r i s k to
the investor to be able to pmduce state of the art audio a t a fraction of
the costs.
It is a very naturdL progression for a recording studio such as Fuder

Station t o evolve into an entertainment ccsnplex vhich includes the
production of films. Ewder Station currently has financing in place f o r a
$ 3.5 million video mix studio to be built next t o the recording studio.
Distrjlxltion ccwpanies are constantly looking for new scures of prcduct
to market. W i t h Bongiari's track record in the entertainment industry,
any product that carries the Bongiwi label should create a bic?dq
situation w i t h the distributors.
Advanced p b l i c relations work is cun-ently being done to set the stage
for negotiations w i t h the distribution companies. "BilIlxxmlt1, lVarietyll,
and "Box Office" have a
w
l
agreed to do articles on Bongiovi and the
mie. On April 30, ABC w i l l be airing a radio talk s h w w i t h Bongiovi
that w i l l air on 2300 stations to a total listening awiience of uver six
million people. "Fame, Fortune, and Romnce" have also agreed t o give
network 'N average.
The home video m k e t has rapidly been charging the ptential mnrie
profits for the industry. A Nighbare On Elm Street was made f o r w e l l
under two million dollars and has earned New Line Cinana more than $24
million a t the domestic box office. In addition, after a short video
release, this pnxtuction has sold wer 3 million cassettes. In the past
videos w e r e sold only to video rental stores for approximately $70
apiece. Recently the price has been lawered to expand the market to the
but they my
general public. The video rentdl stores won't disa-,
beccone more like record stores that also rent their albums. A l l of this
translates into nmre p r o f i t potential f o r prducer and investor.
It is an extremely rare opportunity t o be able to get i n on the ground
floor in an offshoot of an already w e l l established e n t e x t a h t
campany. Any investor willing t o back this project w i l l have f i r s t right
of refusal on any future projects. The prcentages w i l l remain the same
for a t least the f i r s t two projects.
Mependently praiuced motion pictures are a better investment tcday
than ever before.
1) Irmeased FBrkets: T h e r e is much wider distribution of motion

p i d a r e s today than ever before (i.e. Pay TV, Cable TV,
videmassettes, satellite transmissions, etc. )
I P r e s a l e 1 contracts which bind the buyers (i-e. networks, pay W ,
foreign distributors, etc. ) to specific payments a t a future date,
this insuring return of capital and, in same cases, a profit before
the film is released.
2.
Inv-t
)
.
Structure:
Ihe producer and investor form a limited partnership for the purposes
of pmducing one o r more motion pictures. The investor receives 100%
of the net profits u n t i l reaqmmt, after which the s p l i t is 50-50.
Profit participation of others (actors, director, writer, etc.) oomes
out of the pmducerls end.
Ihe producer secures the services of a director, principal actors,
and a writex.
Presale Deals:
me producer can negotiate presdle (preproduction) arrangements w i t h

distrilmto~~
networks,
,
pay TV, merchandisers, etc. Whereas such
a?=rarqements can minimize the d-ide
risk, they can also mit
the eventual profitability of the film.
Risk Fadors:
It is very d i f f i c u l t t o d e t a m b e exactly how much of a r i s k one runs
in financing a theatrical film. Adequate statistics are hpssible

to find. S h a n ~ Sexvices
t
of b s Angeles a four-year-old study w h i c h
revealed that 60% of a l l films released make money. This study,
hwever, did not include long range TV syndication (foreign and
domestic) revenues, and w a s made before Pay TV and video cassettes
lxmnks significant additional markets. chmical Bank of New York
reports that they have never l o s t money on film financing.
Another risk is the possibility that no distributor will want to

release the picture. That is why some independent producers include
a provision for distribution financing in their investment
agreemnts. If worse comes to worst, producers can distribute the
film themselves. (Notable exanples are "Billy Jack" and "Benjil*.)
There may be prcduction catastrophes that will delay or cancel

production once it is under way. m-oduwill carry various forms
of insurance (including completion bonds) to at least repay whatever
funds have already been spent.
If a distribution arrangement has not already been made, the producer

now secllres such an arrarqement. If the picture is good, it is
possible to negotiate a much better deal than could have been done
earlier. On the other hand, the prducer owld have trouble securing
the kind of distribution cormnitment wanted. The main factors here
are haw rmch money the distributor is willing to ccmunit to selling
the picture, haw much influence the producer can have on the
marketing e g n , and the distribution fee. Sametimes small
distributo~sare able to give more time and attention to independent
pictures atid offer better terms, but the producer may have to provide
some digt-xihtion expmses.
Cut of gross damestic box office receipts, the exhibitor (retailer)
usually subtxacts his fixed costs and then receives 10%. Out of the
remining 90% gross film rentals received by the distributor
(wholesaler), he usually recoups all or part of his asts plus a
distribution fee of 20-35%' then passes the reston to the
producer/investor. Terms of distribution deals vary wnsiderably.
Box office d p t s , hawever, only account for a part of the

prcduoer/investorls revenues. As the enclosed figures &ow, the
ancillary markets are at least as significant as the domestic theatre
box offie. TV syndication, for instance, can continue to bring in
revenues for the next twenty years.
Demand for met:
W y ' s supply comes nmhere near to matching real demand. At the

present time, there are over 18,000 theatres in the United States.
It can readily be seen that roughly 400 films prcd1.1~4
and rated last
year did nut begin to meet their needs. 'Iheatres are campelled to
shm any type of film they can obtain to keep their doors open.
To date, independent producers are respnsible for 72% of all films

made world-wide. The domestic figure is 62%. me inaependent
producer has three primary options regarding distribution. These
include the sale of the film cutright to a major national

distributor, their merchandising of the film by the production
mmpany i t s e l f , or the use of smaller regional mb-dktr&utors who
may p m t e the film i n their respective geqrapkicdl areas.
Distribution of films often relies on a l l three methods to one degree
or another.
Another market, television, can consume nearly every film that has
been, or is p-tly
being p r o d u d . If each of the three mtmrks
would show only one film per night, they wald need wex 1,000 films
per year. In Lns Angeles area alone, there are nearly 10,000 films
aired each year in a combination of local and network viewing time.
Many films are sham time and time again because there are no llew
films to replace them.
1
. .
. .
Today, virtually every film of quality has residual value in

television, either by outright sale o r by term licensing. me l a t t e r
is preferable since it allows the production company t o retain
ownership of the negative. me time lag between theatre release and
TV sale has dimhished fram seven years to an average of 18 mths.
However, sane major features such as "The Wizl' have heen sold to TV
before ccwpleting a f u l l year in theatrical release. me trend seems
to be taward purchase of 'fresh' films, and the outlets a p p a r
willing to pay the higher costs involved
Because of the great demand and the outrageously c a p e t i t i v e attitude
that penades the networks, handsome deals are being consunnnated
before the production has been ampleted and then, by preamangenent
with the producers, hold the film until it has -let&
its
theatrical run.
APPENDIX
Breakeven for Limited Fartners:

Based on grass revenues of $ 11,200,000 collected fmm 1st and 2nd
t h e a t r i d runs
1st run t i c k e t costs of $ 6.00

2nd run ticket costs of $ 5.00
$ 300.00 G r c s s per show
$ 300.00 per show X 1000 houses
$ 300,000 Gross
$ 300,000 X 14 days
= $ 4,200,000 Gross
50 people per show
x $
6.00
2nd Run
50 people
per show X $ 5.00
$ 250.00 per shm X 2000

$ 500,000 X 14 days
Total 1st Ibvl
Total 2nd Ibvl

Total
hauses
= $25O.OOGrosspershow
=
$ 500,000 Gross
$ 7,000,000 Gross
Forcast A
Total Box
office Gms
$ 11,200,000
15%F~~ me.,-
1,680,000
g 520 000
2,856,000
6,664,000
Less : jy,"em Capital
4,000,000
~~t
profit
2,664,000
1,332,000
1,332,000
199,800
mtion pic-
-fit-
30% ~ i ~ i - ~
F~~
k t i ~ ~
prodUcers
split
50%
Investment Ccrmpany R e t u r n
: General partners S p l i t
-------
15% -----
These are onlv umiections and are f o r informational pwmses only. Any
investment made. based solely on these u r o i e d i o n s would be unadvisable as
actual uerfonnane could vary cyreatly.
Forecast B
Forecast B is based on a total box office gross of $ 28 million
A film that prcduces a theatrical gross of $ 28 million can be expected to
gross at least that much from TV, Cable and video markets. Depnding on h m
distribution a-ts
are negotiated we can expect 50% to be net profits.
Forecast B
M~15% F~~ meatres
--
Motion Picture Profits
$ 23,800,000
$
Less 30% Distribution Fee
4,200,000
7,140,000
$ 16,660,000
T.V., Cable and Video Net
-------
$ 14,000,000
Less : Investors Capital
F?xducers Split @ 50%
$ 10,670,000
Investment Companies' IWxm
$ 10,670,000
Less : General Partners split @ 15%

Investors Return
4,000,000
1,600,500
9,069,500
These are onlv proiections and are for i n f o m t i o ~ lm x c e s onlv. An

investment made. based solelv on these ~roiectionswould be unadvisable as
actual cerformanoe could vary qreatlv.
You Oughta Be In
Pictures!
I by Alan Talansky 1
here's explosive growth occurring in the motion picture industry, and growth should always he
music to any investor's cars. -Hut
movies!" you wy? It's time to put
aside your images of Tinseltown and
'Heavm's G:~te,"and to take another
look at an industry with some new,
sound invest~ilentpotmtial.
There's risk in any investment, of
course, rvc-n in real estate - the investment area on which many firms
originally built their reputation and
success. In real estate, it's a matter of
how carefully you assess a variety of
influential factors and how you struclure the deal. Motion pictures are
much the s;arne. You've got to look
for potenti:~l.
fashioned profit: an ideal solution for

post tax-reform era.
The key here is undersranding how
much the industry has changed. The
tyranny and fickleness of box-office
receipts is no longer. More people
around the world are viewing more
films than ever before. but not necessarily in the theatres. Consider, for
example, that there are only about 300
feature films made every year, of
which about half could be considered
"major." Now, compare that with the
number of movies a cable outlet, like
Home Box Office,
shows in a single
duy. Eight? Then.
take a look at the
shelve?;o f your locxl
3
ucts to & financed, and [he second

the structuring of the deal.
in wlecting the pn)duct, success
u s ~ J [ l y found in tilinking small, ~h
larger [he budget in a film, the great,
[he risk,
[he $50 ,,,illion antic
pdted blockbusters and seek out. ir
stead, the more modest undenJkint
of smaller, ambitious film produc
tion sources. A,,
example i
Island Pictures, a
small, in
dependent film production and di>
tribution conlpany for which, la,
-,
N d guile a btochburrcr: lslund3 - N o M . y ' s Fool.' slurrim>

h'osunnu Arqurtlr und Eric Robens. wrr u more modrmrc succerr
e ~ will1
m Pulil2er Prtm winning phyw(yhr 5elh Henley uniting. Phok
muriesy lsland Pichrres.
video rental store, year, a $7.4 million equity placement

a n d the crowds was arrsngrd. lsland Pictures is an rflooking them over, ficient operation - unlike some of
and you begin to the more notorious larger Hollywood
understand the di- studios - and it knows how to
mensions of growth.
recognize quality.
Of course, just as not every piece of
Litrle known lsland Pictures capreal estate is a great investment, every tured a great deal of anention in 1985
movie isn't bound to turn a profit. with two extraordinary films - "Kiss
But, there are two factors that h ~ v e of the Spider Woman" and "Trip to
proven ro be the critical difference in Bountiful." It was the first time in hiscreating a sound investment vehicle. tory that one production house could
The first is the selection of the prod- claim credit for both the Best Actor
Success o m a shoesrrlmg: ~mducer/dix~clor

spike Lru fcmrler) turned
a puttry i l 7 5 , O ~ W p ~ u c r i obtrdwt
n
for "She% C<,tla HUM R - i~ilou
$7 millio~rgrr*u.irr#suqriY hi,. Co-slursjulrn Can',nb T&l
(lejll utrd
~sd,,ro,td Hicks f"gkr)
~ r t . ~ I Ww.1.Photo courtesy Forty ~ c r s s
and a Mule Filmwohs.
When the motion picture industry

was first examined as an investment
vehicle a few years ago, the expeclation was that there was potential for
tax deferment. Wh;lt was found, however, was a surprisingly rich source of
income for investors from good, old-
SPRING 1987
l h e i n f o m t i o n s e t f o r t h herein w a s obtained from sources which w e

believe reliable, but w e do not guarantee its accuracy. Neither the
information nor any opinion expressd constitutes a s o l i c i t a t i o n by us of
the pwchase o r sale of any securities o r cmmtxlities. 'Ibis package is
f o r informational puzposes only, to gain an indication of interest in this
project. Financial Mamgement Group Ltd. does not endorsed and has not
been contracted by mer Station to p-te
this projed. Any questions
regarding i n f o m t i o n contained herein should be W e d t o Stanley J.
Caterbne o r Scott Rokertson.
1
In
u-
n u m w
newsletter
Welcome
FMG would like to e x k x l a hearty welcome to Jon Gruh=r & Craig mseli.
Principals in the law firm of &see1 Krafft G n h r & Huber. 'Ihey w i l l
mintain office hours here daily f m 1 t o 5 EM and w i l l be part of our Legal
Referral system. --MICHAEL HARllEW
Parkinq
euplayees please park in back of ccmplex f o r o m client's convenience.

&
FMGl
J
?his means both you and me. -ROEBU! XAUFEMAN
Fhone Messases
If vou take messaaes a t niaht lease leave the nssaaes in the circular on the
---.
front desk.
We -are lo&
&o many afi%r-haur messages fram clients due to
lack of c o o ~ t i o n . --T(D=
KAUFEMAN
---
lb F I G Frcducers f o r A ~ r i l
1. P e t e m m
2. 'Ibm 'nlrlxr
3. P. Alan Loss
4. Harry Radcliffe
5. RabertKauffiMn
My sincere congratulations to our top prcducers and award w i n n e r s .
--ram
KAUFFMAN
Win A Wiv lb San Fancisco

% w i l l be sprmring a t r i p to San Francisco for a R-iday, Saturday, Sunday,
and Monday i n September. The contest w i l l run on a business sutPnitted basis
fmm May 15 through August 15. Your g w l for t h e t r i p w i l l based on your first
quarter total with d i n minimunrS.
IfyourfirstauarterGCIwas
0 - 20,000 then vour seal is 20,000
20,000 - 29,999
30,000 - 49,999
50,000 - 74,999
75,000 - 99,999
99,999 +
G c d
Luck. See you in San Rrancisco!
--ROEBU! KAUFEMAN
30,000
50,000
60,000
70,000
80,000
= -7
-
-'_'
FMG Advisory
m
=
I
Eden Park 11. 1755 Oregon Pike
Lancarler, PA 17607
717-5694100
XUL * I . L T I M Z N T L l W . L1D
May 28, 1987

Ms. Dore c. Valavanes
Shirk, Reist, Wagenseller and Shirk
Post Office Box 1552
Lancaster, PA 17603
Dear Dore:
Enclosed are the completed files on the Umiker's Power of
Attorney.
I have been extremely busy and would like you
to distribute the copies to those involved.
Thank you so much for your help with this.
Sincerely,
SJC: lmk
CC
encl
May 29, 1987

Ms. Ellen Libman
Pcwer Station, Inc.

441 West 53rd S e e e t
N e d York, N.Y. 10019
Gear Ellen:
L e t ' s try it again. This time w e are scheduled t o leave IDSAngeles

on Thursdzy, Jdii 4 & i ret3 Ias Arzjdes cz TJ&-,
Z&w 9. 3.e
follaJing is a rough s c h d l e .
m & Y
Arrive atout 3:OOR.I. Please l e t us laww the exact

f l i g h t information as w n as possible so we can
arrarrge *rt
transportation here. Let us Iuxw
if sureone w i l l pick us up in New York o r i f we
M
d arrange tr-rtation
to F a e r Station.
Also let: me -1
what btel we w i l l be hoked a t
in New Y a k so we can leave t h a t information here.
W e ' l l corne to Power Station for any discussion
regarding the s c r i p t &/or budget.
Barbara and I have a dinner meeting with a Director
of Photqraphy.
Ieave for Ned Jersey in the mrning. M e e t w i t h

Steve Gorelick, the hrcduction Coordinator of the
New Jersey Film Carmission. Look a t locations.
in New Jersey. Meet the rep

fmm Maury's Pier to discuss location costs.
Check out btels for crew ard cast.
last m i n u t e d e t a i l s in New Jersey.
Leave for New York a n x d m n .
3-Y
Y-
S t a n Caterkon-e arrives
Meetas a t P a e r Station for findl discussions

about s c ~ i p t ,budget, oatracts, etc.
Additional ueetins in r r p r n i q if necessary.
Ieave New York a p ~ o x i m t e l y4PM to arrive Los
Angeles a b u t 9R.I.
\
Please let me kmm if ycu have an:! additions or changes. I ' l l probably
talk to @u a9a!,n c-;.!,>.TY%:J.
.. <&"., .
c:t_::
Barbara Peters
%7=ds,
Arlene
4334 STERN Am..SHERMAN OAKS.CA 91423
(8161 995-3417
FlATBUSH
FILMS,NC,
May 29, 1987
Mr. Stan Caterbone

554 Berkley Avenue
Stone Harbor, N.J.
Dear Stan:
I'm enclosing a first draft of the screenplay, complete with
typos and a couple of other errors. (For instance, Kennie
Queens is also Kenny Peterson.)
This
well
very
talk
should give you sufficient time to study the script as

as the budget, which I'm also enclosing. It would be
helpful if you could have notes prepared which we can
about when Barbara and I are in New Jersey next week.
&
rlene
,avidson
4334 STERN Am..SHERMAN OAKS. CA 91423

1818) 995-3417
TIME
S Y S T E M S
MONTH
,-d u g
YEAR
1487
RICHARD L. TRUMP
P.O. BOX 557
SKIPPACK. PA 19474
Bus. (215) 489-2447
June 3, 1987
Mr. Stan Catcrbone

1755 Oregon Pike
Lancaster, PA 17601
Dear Stan,
Enclosed is Stock Certificate number 28 that you requested
to be returned to you.
I am concerned about the $2,000 purchases of FMG stock
which I placed via a money order for Michael and Melissa
Metallo.
When registering and printing their certificate please
use the following information:
Michael C. Metallo and
Melissa J. Metallo
Social Security. Number 027-34-9917
Address:
1401 Rising Wind Court

Silver Spring, MD 20904
Please let me know if there are any problems with having

the certificate issued.
Sincerely,
&,&
&zU/&@
Rick Trump
RLT/tpp
Enclosure
Securities Transactions through Hibbard Brown & Company, Inc.

A Registered BrokerfDealer
Member NASD & SlPC
June 1 2 . 1 9 8 7
Mr. Stan Caterbne
Financial Manag-t
Group
1755 Oregon Pike
lancaster Pa. 17601
Dear Stan:
As you requested here's a schedule for hroject 441 (mrking t i t l e ) :
PRE-Pmmm
Ju~le28-July 11, 1987
July 12-Sept 5, 1987
POST-P~m
Novanber 1-January 30,1988
New York
New Jersey
2-
New Jersey
8 5 day weeks
8weeks
New York
In order to s t i l l get the film made this season we've got to speed everythkq
up. W e originally planned four weeks of pre-production in New York kt t h a t ' s
ID longer possible. I f we start J w 28 we've got only ten weeks to get the
mtant effects going and then w e ' l l have to schedule mutant scenes later in
the film i f t h y aren't ready.
This schedule also takes us to October 31 for the enl of the shoot, which means
we've got to schedule exteriors f i r s t , leaving the interiors f o r later in the
went of bad weather.
S i x e we're on such a tight M u l e I can't r e d l y hreak
you because it w i l l a l l start ha-
down the
costs for
so quickly, We'll inmdiately have a

NaJ York office, per d i m , hotel an3 contracted fees for Barbara and myself.
W e ' l l hire a casting director, p d w t i o n manager, production coordinata~a d
location manager, get the mutant effects started and begin hiring key personnel.
If p check the m e t p ' l l see the a c M m m h r of weeks of aployment
for crew. mere w i l l be legal fees for preparing mntracts. During those +XJ
weeks ~ ' 1 twpefully
1
do rmst of the castiq.
4334 STERN AVE., SHERMAN OAKS.CA 91423

(818) 995-3417
w i n g the eight weeks of pre-producLLion in N w Jersey w e ' l l be mrkixg

w i t h the art director, c o s m e designer, s e t decvrator, building s e t s ,
tying d m locations, e t c .
A week before shooring the f u l l crw w i l l be prepping.
a r r i v e ~ a tabout t h a t tire ard

e n t i r e shootinq period.
hill
The editor w i l l
be working on a rough cut during the
A t the close of p d u c t i o n Barbara, the editor and I w i l l m e back to

New York f o r a three mnth editirq period a t the end of w h i c h we w i l l
deliver the finished film, incllxlinq distributor's requirements ard t h e

MPAA ratinq.
As you can see this w i l l be very tricky but I s t i l l think we can do it

i f Barbara an3 I are in New York no l a t e r than June 28.
Hope this helps.
Regards,
cc: Tony Bongiovi

Barbara P e t e r s
PERSONAL FINANCIAL STATEMENT

IMPORTANT: Read these dlrsctions baton cornpletlng this Statement.
,
n r o u . r m ~ ~ ~ ~ a n a l n d ul n~v w
~ rro~m ar v~m~e i n o a , a ralympanl a n a r n r r o m s m ~ r w c r a r u l m ~ n u n c a s ~ ~ t ~ d ~ m m a r ~ ~ ~ ~ ~ ~ ~ ~ ~ l m ~ s p a y m c n
C m p ~ ~mb
e S T ~ S 1 and 3
0 n y w are .pply4ng la p n t cradftrlnn armnn palm, cornwe *I~ ~ t r pfaamnp
n r
nlamalrn n ~ s c t ~ a2 n.mr inr on8 awlcant
nw.rerorna,v~srsou.~uln.raylw~ncm~,~Uml.
C N ~ s Y P L X ) R a - , . I . ~ ~ . I . ~ . a m m . l n C O m m a I ~ ~ ~ ~ a m ~ e r w l T O n u ~ n ~tor
~ ~r ~c p a l ~ i d ~ h e ~ r e a
,bq-tad.
S ~ C I M I . (10n0,~pnpm~ammn
%clan 2 a m IM D~Mal,mny. s
-.
a* mamom- paymantr a nca issatr sou i r e i c h ~ q
J 11ns s.I-~
rehta. to mu plw#ann,dma -msdnandolnr
p r u n l r l I h r q s ) a cmpaatm(r). compbce S % l m 1 an0 3
cmyMe~~
Salary banuses 6 C
O~~~SSMS
Dlvlaenar
Real estace t n c w
Otner mcome W m m ~CNU
.
or
PERSONAL INFORMATION
.IS-
SOURCES OF INCOME FOR YEAR ENDED
Do yw nave a w
, me 01 ereculor
Are yw a partner or olllcer m any otter venlure? 11 so aercrlbe
ml-
Are you mlgatea IO pay Ymony cnda w r p w l or separate rnalntenance

paymenls? 11 so aescrme
.*ar*llop~.-~w~onmi.l.blohr~
-~r.o.*tw-muowdm)
~ , any
e assets pledgeaamr Inan as dercratlea on scneaules? II w, aescrabe
TOTAL
CONTINGENT LIABILITIES
DOyou nave any conlmgent lhabl8ller~11 w, aercntle
Income tax selllea lnrougn (date)

Are you a delenoant in any rut's or kgal acl6ons7
As onaor~erCD-make, or guarantor?
On leases or cmlraclr7
S
S
S
S
L-1
cla~ms
OlMr specoal aebl

M w n l 01 cmtsned mcome tax loens
739 REV 3/78
Perma1 DlWl accounls carved a1
Have you ever men declarea b a h p t ? IIw, aerclb?
(COMPLETE SCHEDULES AND SIGN ON REVERSE SIDE)

n
-Y
SCHEDULE A U.S. GOVERNMENTS h MARKETABLE SECURmES

NumDn 01Shares
a Face V a f w (BaMsl
Descr~ptm
Ale Thaw
In Nam 01
Marha
Valw
Piedpea?
SCHEDULE B NON-MARKETABLE SECURITIES

Descr~plm
Number 01 Snares
Are There
ln Nams 01
Sovrce 01
Value
Valve
Pleapea'
SCHEDULE
C PARTIAL INTERESTS
MUtTlES
- ~- - IN REAL
~ESTATE
-
Thlle 10
N01
Address 6 l y p
01Prooeny
Dale
5 01
Ma~kel
valw
Cost
~*nerstnpAcwvea
Mongape
Mrfgagc
Mslwtly
Amunl
SCHEDULE D REAL ESTATE OWNED

1
Dale
AcqusreO
Tdle I"
Address 6 Type
01Rwuly
Name 0 1
Market
vale
MMQaX
MOU
Y
II
SCHEDULE E LIFE INSURANCE CARRIED. INCLUDING N.S.L.I. AND GROUP INSURANCE

Om- 0 1
PMcy
Name 01
Insur-e Ccm~4-y
Benefr~ary
Face
Amml
Cam Surrna
Po1.c~
Value
L-I
I
t
SCHEDULE F BANKS OR FINANCE COMPANIES WHERE CREDIT HAS BEEN OBTAINED
The Informdlon c0nlain.d i n this s t a t m n t is 0rovid.d for tha w m s e of obtaining, or maintaining credit with you on behalf of
undmlgwd.orp~nona, Urms orcorporstlona i n who" b.hantha undenigrvd may aith; uvaraily or jointly with others. e n u u t a 8 guara
in vour favor. Euh undomiand undustandr mat vou am nlvlng on me infomutton providsd h r e l n (lndualng t h designation made a1
o w ~ - h i ~ o i ~ r n p . ~ind.cldlng
)
togmnt or contiriw cndn.
undenlgmd n p n m t s and warrants tttmtth information prov1d.a is t
and comoietand that vou m w consider thIsstrtam.nt ucontlnuln. l o k trueand correct until a written notice of a chsngb i S given toyor
the undarslgned. You .n mtlhorlzed to maka aU inqulrta you dwmnaCa.ury to verlty the accurvy of the statements made herein. an<
detnmlne m y l w r cmdlhrorlhinu. You am authorized to answer questions about your &it
exprlenca with melus.
Euh
Sigmlure (I!ldl#~Oual)
S S No
Dale 01 B~rtn
Slgnalure (Olner Party)

S S No
Date Sognea
19-
Dale ol 0u:n
June 15, 1987

Mr. Stanley Caterbone
FINANCIAL MANAGEMENT GROUP LTD
1755 Oregon Pike
Dear Stan:
It was good speaking with you - - at last - - after our message
go round. Enclosed are the materials you requested. I expect that
this should reach you by Wednesday.
As I indicated to you, Hunterdon County is the area I have tareeted
for development in New Jersey. InteretaLc 78 was completed this
year and tied Hunterdon County into a 25-35 minute commute to many
major corporate centers in New Jersey, i.e. Morristown. Princeton
and New Brunswick. After completing a survey of the area, I am
satisfied with the resulting information. I have been dealing with
local brbkers with a view towards locating both residential and
commercial sites for development, several properties are under negotiation
at this time. These projected investments are well leveraged and
offer impressive cash-on-cash returns.
I look forward to discussing these opportunities with you.
SW:wc
Enclosures
Via Express Mali
1 2 0
C O U N T Y
R O A D
I E N A F L Y
N l
O I h 7 O
2 0 1
5 6 8 h 8 7 5
PLAN
DIXX
UEEINGS
-T
RIINNG-
El 4101
RtY 1-85
WNTU
P*YSEAL
S.R,lU*L
-MIL"
PRlNTED IN US
LAW O F F I C E S
SEIDEL,GONDA, GOLDHAMMER& ABBOTT,P. C.

PATENT A N D TRADEMARK A T T O R N E Y S
S U I T E 1800 T W O P E N N C E N T E R P L A Z A
P H I L A D E L P H I A . P A . 19102
A R T H U R H . SEIDEL
T E L E P H O N E 12151
J O E L 5. G O L D H A M M E R
MlCMAEL P ABBOT7
22 J u n e 1987
TELEX
845
CABLE
GREGORY 3 . LAVORGNA
DANIEL A . MONACO
ROQEFlT H
WAMMER lil
THOMAS J
DURLlNG
GROUP I , I I b
EDWARD
GONDA
O F COUNSEL
SYLVIA A. G O S Z T O N Y I
S C O T T J FIELDS
8*R*
5549
,!I
(1930-19851
NANCY A . R U B N E R
b NI
1 1 6
SIPAT
12151 5 5 8
TELECOPIE-
S T E P H E N J. M E I E R S
AMANDA LAURA NYE'
'DC
see-e3e
STANLEY H . Z E I H E R
ONLY

FMG Advisory, Inc.
Eden Park I1
1755 Oregon Pike
Lancaster, PA 17601
RE:
Service Mark Search f o r

"FINANCIAL MANAGEMENT GROUP"
Our File: 7351-G
Dear Stan:
As requested, I have completed a search in respect t o t h e above-referenced
service mark. The results of t h a t search a r e annexed hereto.
I t is my understanding t h a t t h e mark "FINANCIAL MANAGEMENT GROUP"
is used for services of providing a complete package of legal, accounting, real estate,
insurance, stock brokerage, portfolio management, market timing, financial planning,
mortgage banking and investment banking t o business firms.
Based upon t h e results of t h e enclosed search, it i s my opinion t h a t you
can adopt and use t h e mark in this region of t h e United States. I t is a close question
a s t o whether t h e mark i s federally registrable. Moreover, you may a n t i c i p a t e difficulty
in using t h e mark in California, Arizona, Georgia and Illinois. The possibility of opposition
t o your use of t h e mark also e x i s t s f o r t h e states of Louisiana and Oregon. T h e reasons
for my opinion are explained below.
If t h e only consideration were federal registration, then I would s a y t h a t
t h e mark is probably registrable. The closest registered mark is "FINANCIAL
MANAGERS SOCIETY". T h e marks differ only by t h e last word, and "SOCIETY" and
"GROUP" arguably have a similar connotation. But your services a r e fairly distinguishable
from those of t h e registered mark. Thus, on a federal level, t h e major objection t o
an application t o register may b e a n argument t h a t your mark is descriptive of t h e
services being offered. Descriptive marks are not registrable unless by virtue of their
long use and heavy promotion t h e y have become distinctive. However, t h e r e is at l e a s t
SEIDEL,GONDA, G O L D H A M M E R& ABBOTT; I? C.

22 June 1987
-2-
a f a i r argument t h a t "FINANCIAL MANAGEMENT GROUP" i s merely suggestive, not

descriptive.
The more difficult problem arises in respect t o t h e f a c t t h a t t h e r e a r e
others using "FINANCIAL MANAGEMENT GROUP" o r slight variants thereof. See
for example California s t a t e registration No. 14070 f o r "THE FINANCIAL MANAGEMENT
GROUP". S e e also t h e listing of four companies under t h e n a m e "FINANCIAL
MANAGEMENT GROUP" in California, Louisiana and Oregon. Moreover, t h e r e a r e
"FINANCIAL MANAGEMENT GROUPS" listed in t h e telephone book for Atlanta, Georgia
and Chicago, Illinois. Whether o r not these o t h e r users remain in business, and whether
o r not they o f f e r services competitive with yours, i s nearly impossible t o evaluate on
t h e limited f a c t s available from t h e report. Thus, t h e risks exist t h a t should you e n t e r
into one o r more of these companies geographical market areas, they may a s s e r t a claim
of prior rights.
If, on t h e o t h e r hand, you will not a s a practical m a t t e r be trading in these
market a r e a s f o r t h e foreseeable future, then I recommend proceeding with a n application
t o register t h e mark. If w e are successful in obtaining such registration, then your
right t o use t h e mark can ultimately become incontestable if not f o r t h e prior users
market areas, then f o r t h e r e s t of t h e United States.
Please f e e l f r e e t o call m e if you have any questions concerning t h e
foregoing.
With kindest personal regards, I a m
Sincerely yours,
SEIDEL, GONDA, GOLDHAMMER & ABBOTT, P.C.
5. 2
3 c~4?J,0~Ym
. GOLDHAMMER
JSG:md
Enclosure
--*-\
\
.
STANLEY CATERBONE
Eden Park 11, 1755 Oregon Pike Lancaster, PA 17601
569-4 10 0
June 22, 1987
Dear Dr. Umiker:

Just a brief note to let you know you
should be receiving the distribution from
your IRA'S with IDS in several weeks.
Please call us when the money comes in
so that we know everything is in order.
Also, due to the growth of FMG and my
duties, I have found it necessary to hire
a Director of Client Affairs, Todd Dellinger.
Todd will
handle
any tactical details
of your accounts, while I will continue
to
look after
the strategic planning.
More details later.
Any questions, please call myself or Todd.
Thanks,
DATE:
JUNE 23, 1987
10:OOam
PLACE:
FINANCIAL MANAGEMENT GROUP, LTD

1755 OREGON PIKE
LANCASTER, PA 17601
SUBJECT:
SCHEDULED MEETING O F STAN

CATERBONE, LARRY RESCH,
AND CARL JACOBSON O F ISC AND
UNITED CHEM CON
Upon the arrival of Mr. Larry Resch, Stan Caterbone met him in the lobby of FMG, Ltd, at which
time Larry Resch said "Carl Jacobson could not attend, we had t o suddenly fly him out of the
country early this mourning?
The meeting was started with the subject of the fmancial difliculties of United Chem Con and
possible alternatives. Larry Resch specifically addressed the possibility of moving the operations
of United Chem Con to another facility, with specific regards to the Renevo Plant. Larry Resch
specifically addressed the financing capabilities of Stan Caterbone, along with possible management
opportunities.
Larry Resch also gave financial statements and documents to Stan Caterbone for the latest fiscal
year for United Chem Con.
Stan Caterbone went on to allege that United Chem Con had embezzled some $15,000,000 from the
United States Government for contracts that contained improprieties.
Stan Caterbone also alleged improprieties of International Signal & Control and James Guerin,
with specific regards to its role in the United Chem Con, and its business activities a s related to
government contracts.
Stan Caterbone noted that he, a s a legal shareholder of International Signal & Control was
concerned about improper business activities.
Larry Resch was taken by surprise by all of the above.
Stan Caterbone became quite upset by the evasiveness and the lack of specifics with regards to
Larry Resch's conversation.
In efforts to thwart any further communication from James Guerin, United Chem Con, or
International Signal & Control, Stan Caterbone demanded a retainer fee of $10,000 before anyone
contacted him again.
NOTE: It should be noted that it was quite evident that Larry Resch was merely acting as a
messenger for James Guerin and or others, and Stan Caterbone has continued a relationship with
Larry Resch that was not reflective of any improper activities or misconduct.
PLAN
TtME %PEN1
arm
WET-
SPIURU-
l V P l RlWC-
RmP
ULNW
RnSCII
rWLI
STERLING C . Y C H E E S
1923-8959
MCNEES,WALLACE& NURICK
( i T H O Y A 5 Y1LLFR
DOMALO R. W A I S F L
R I C H A R D Q. LEFEVER
CR1C L 8 A 0 5 S Y A N
ROBERT D S i L T S
TERRY R 8 0 6 5 C R 7
-I. T H O M A S YENALF'I
CLYDE W M t l N T I R E
MARY JANE FORBES

JEFFREY B CLAY
DAVID
LLLPPlNGEii
NEAL 5 . W F 5 T
BRUCE A TLLDMAN
T R A H I L I N A MILLS. J R
YICHALL
OUCIROW
BiUCF D 8ACLCY
BARBAR* 5 . LAHOE
STEPHEN A. M W W C
DAN* 5 . SCIOUTO
!DWARD w ROTHYIN
0 0 8 E I l i A MILL5
W JFFFRY JA*OUNE*U
HERBERT fl NURICK
DAYNO L LEHHAY
ATTORNEYS AT LAW
19.2-1967
100 P I N E STREET
P. 0 B O X 1166
~~
DAVID W . WALLACE
H A R R I S B U R G , PA. 17108-1166
TLLEPHONC (717!232-8000
TELECOPtER (717)236-2665
LL12hB-H
A. DOUGHERTI
A L A N R . BOYHTON. JR
GARY T I E H K O W S K I
DAVID 8 . D l l W L l
H. LEE ROU5SEL
MAURICE A . TRATEll
C C I I I I W C E R BOW***
.(O)tW 5 . 0 1 L F I I
In Re:
DIANE H 7 0 1 A R 5 1 1
JAMES J D O D D - 0
AHIIE I.FIOnENZA
JOHN Y l B F L
RICURD 5. LAHLBIVGII
KEVIN _I. F R L D C R I C L
DlVlD
O f COUWSLL
June 23, 1987
*.w*ris,JI1.
61LBER1 Y U R I C I
EDWARD C. FIRST, J P .
ROBERT H.GR15WOLD
JETTEISOW C. B I R U H A R I
SAMUEL I . SCHRECIENGIUST..
FMG Advisory, Inc. - Pennsylvania Investment

Advisor Application
Our file: 11489-001-5

1755 Oregon Pike
Lancaster, PA
17601
Dear Stan:
I am enclosing a form of letter I propose to send to
Mr. Schwartz, and in case any changes in the application
are needed I also am returning executed Form ADV which you
recently sent to me.
.4
9
\..
4
Wd
Please review the draft response letter very closely

and give me any comments. In connection with your review,
please consider the following points:
1. With respect to Item 1, Form ADV indicates that
10 or more persons will perform investment advisory functions,
and I note that you have included additional Form D's. However,
there appear to be only nine such forms attached. You also
should prepare a separate list that names such persons.
2. With respect to Item 5, the explanation given on
Schedule F with reference to question 12.B. has not been
changed, although as was pointed out by Mr. Schwartz and
as we agreed, the information given is garbled and should
be revised.
3. With respect to Item 7, Mike's Schedule D should

be revised in accordance with the information given in my
letter, which of course is taken from Mr. Schwartz' letter.

June 23, 1987
Page 2
The clarifications should include the information you gave

me concerning his status as a Certified Financial Planner,
and also should relate to his corporate positions with Ltd.
and Advisory, Inc.
Please look this over and call me at your early convenience.
When you and I are agreed on all changes, you should return
the application and I will see that it and the transmittal
letter are filed promptly with the Commission.
Sincerely,
McNEES, WALLACE & NURICK
WJJ: jp
Enclosure
INVOICE
Lo&L
CthQba
N-456
RUSSELL
Locksmith - - Safesmith
334 N o r t h Q u e e n S t r e e t
Lancaster, PA 17603
Telephone: (717) 394-3757
Customer's
Order No.
Phone
No.
sold TO
F*G
Address
Ed-,
PJVISO.-U
&,*
.Sn<- 1755
*~
1987
C'hrtq-p)C'
TERMS: Net 30 Days. A 1 %%Finance Charge or 18%Annual Rate Of Interest will be

added to all invoices over 30 days and each 30 days thereafter.
Rec'd. By
LANCASTER AVIATION, INC.

LANCASTER MUNICIPAL AIRPORT P.O. BOX 375 LITITZ, PA 17543 717-569-5341
J u n e 2 6 , 1987
Account $282396
U / O HE240
F i n a n c ~ a lManagement Group, I n c .
Eden Park 1 1
1755 Oregon P i k e
L a n c a s t e r , PA 17601
Navajo
N27623
1.
T r o u b l e s h o o t i n o p e r a t i v e h e a t e r , remove a n d a d j u s t
\ 115.50
h e a t e r p r e s s u r e s u i t c h . I n s t a l l neu b r u s h e s i n h e a t e r
combustion b l o u e r m o t o r . R e p a i r b r o k e n h e a t e r d r a i n h o s e .
2.
C o r r o s i o n i n l e f t e l e c t r i c a l p a n e l , removed
and p a i n t e d .
3.
H y d r a u l i c power pack f l u i d l o u and s l i g h t l e a k a t f i t t i n g ,

t i g h t e n e d f i t t i n g and s e r v i c e d pouer p a c k .
16.50
4.
Accomplish t h e f o l l t u i n g minor m a i n t e n a n c e :
39.60
A
8.
C.
0.
16.50
corrosion
A d j u s t baggage door c a t c h e s t o c l o s e more t i g h t l y .

R e p l a c e l e f t f u e l s t r a i n e r s e a l and r e f o r m b o u l i n
seal area.
R e p l a c e t a i l n a v i g a t i o n l i g h t lamp.
R e p l a c e r i g h t t a x i l i g h t lamp.
5.
I n s t a l l neu b r a k e d i s c s and l i n i n g s .
158.40
6.
Remove oxygen b o t t l e , ( a d j a c e n t equipment h a d t o be r e moved t o g a i n a c c e s s ) . P r o v i d e neu u e i g h t and b a l a n c e

t o r e f l e c t b o t t l e removal.
227.70
Total
1
4
1
2
1
CFO-100 F i l t e r
387 Lamp e 1 . 7 9
l4P23-1 Cap
25164-14 Brush e 9 . 8 7
4596 L a m p
\ 574.20
J u n e 2 6 , 1987
Navajo
U/O H8240
N27623
A508-28 L a m p
H i s c . H a r d u a r e a n d H y d r a u l ~ cF l u l d
Total
L e s s 10%
Total
93.24
9.32
83.92
F o l l o u i n g b r a k e r e p a i r p a r t s b i l l e d a t o u r c o s t p l u s 10%:
Total from above items
2
164-79 D i s c B r a k e @ 214.27
16
66-66 L i n i n g @ 1 0 . 0 0
1
751-898 S e a t
6
68-28 S h i m - b r a k e @ 1 6 . 8 6
Total
$ 775.20
Labor
Parts
7a r
$ 574.20
Total
$1430.36
775.20
00.96
LANCASTER AVIATION, INC.

LANCASTER MUNICIPAL AIRPORT P.O. BOX 375 LITITZ. PA 17543 717-569-5341
June 2 9 , 1987
X n r , Stanley J . Caterbone
F i n a n c i a l Hanagement Group, 1 n c . J
Lancaster. P A 17601
Dear S t a n ,
Thank y o u f o r t h e r e p l a c e m e n t check i n t h e amount of S 2 5 . 0 0 0 . 0 0 , u h i c h
u a s h a n d - d e l i v e r e d t o d a y t o r e p l a c e your p r e v i o u s l y r e t u r n e d c h e c k . Ue
s i n c e r e l y r e g r e t h a v i n g had t o i n s i s t o n immediate payment, b u t I
b e l i e v e t h a t our i n i t i a l l i m i t a t i o n s and u n d e r s t a n d i n g s u e r e c l e a r .
I have e n c l o s e d summaries of i n v o i c e s f o r e x p e n s e s y o u have i n c u r r e d
t h r o u g h t h e u s e and m a i n t e n a n c e o f your a i r c r a f t . I n t h e c a s e of t h e
m a i n t e n a n c e uork o r d e r l e t t e r , y o u w i l l n o t e t h a t S 2 0 8 . 3 4 i n c r e d i t s
u e r e i s s u e d . The a s s o c i a t e d e x p e n s e s were more f a i r l y a s s i g n e d t
a i r c r a f t s a l e s d e p a r t m e n t . Your p r e s e n t b a l a n
(.-
-Haintenance:
,
'
- FPui leol :t S e r v i c e / f u e l / e t c . :
1 1 ,,142.0@
92 76 12 . 57 89
-Total:
(3,376.3
Your a i r c r a f t i s nou i n s u r e d o n ~ a n c a s t e r w ' fs l e e t p o l i c y .

Uhen t h e a i r c r a f t i s removed f r o m our p r e m i s e s , i t w i l l b e removed f r o m
t h a t p o l i c y . Uhen we r e c e i v e our s u b s e q u e n t b i l l i n g f o r a i r c r a f t
i n s u r a n c e , ue u i l l s e n d y o u a C O P Y o f t h a t p a r t of t h e b i l l u h i c h d e a l s
w i t h your a i r c r a f t , and ue u i l l i n v o i c e y o u f o r t h o s e premium d o l l a r s .
That p r o b a b l y u i l l n o t o c c u r b e f o r e h u g u s t 31. Y o u u i l l need a i r c r a f t
i n s u r a n c e . I have t a k e n t h e l i b e r t y of e n c l o s i n g t h e c a r d s of t u o
a b s o l u t e l y r e p u t a b l e b r o k e r s , and recommend them t o y o u e q u a l l y .
Ue u i l l r e l e a s e t h e a i r c r a f t t o y o u or t o your a g e n t s uhen your ~ o s t
r e c e n t l y p r e s e n t e d check h a s c l e a r e d , and uhen t h e c h a r g e s o u t l i n e d
above have been p a i d .
1 s i n c e r e l y r e g r e t t h e d i f f i c u l t i e s ue have e x p e r i e n c e d i n our b u s i n e s s
r e l a t i o n s h i p . I f ue can be o f any h e l p i n m e e t i n g your f u t u r e a v i a t i o n
n e e d s , p l e a s e c a l l u p o n us.
Sincerely yours,
SHITH
Vice P r e s i d e n t and G e n e r a l Hanager
C.H.
C..
;.
:.:
.. .. . .
~, ~:
I 12th Year- No.35,315
METROPOLITAN
LANCASTER, P A . . FRIDAY. JANUARY 5 . l!
I The Ferranti fraud

(
Officials describe an international charade of 'cardboa

companies, secret bank accounts, a non-existent conti
Jacobson gets jail for role in bribe scam

2-month pris
HEW YORI: - Forms,? E I r i
P ~ l c r r b u bu,,nermman
r~
Call E.
J ~ c o b ~ o n w ~ ~ r c n l c by
ncrn
era1 judge on ~uc.srlay t o two
monfhr in oris<>" fa" his
as
the "bsgnlan" in hrihlng a Navy
oll,",al Iorllrr drfrnsr controdr
to Unrlsd ChcmCon Corp and
I
I
I9
I
I
After the rcnrenrc r o s an^

naunced by US. nlrlr~rtc o u n
Judge Pebr K L?isurp, h c o b MRUlrned to hi. wrfe and fnends
mthecounmamnnd gave* brief
&andsmile.
Jacobson. who told the judge
be wan "a.hrmrd
of my a c ~
llone." recelved two months m a
minimum-security prtson for
Passing along 180.m in bribe
money to a Navy oillcial who
pmmrsod to steer contracts to
ChcmCon.
For the Wedtech charge. ~n
which he was the nliddicmrn lor
1 il1S.WO bnDe. Jacobson R"ivcd a Ulrae-year rvrpended
~nfenceandproh8tron.
Lri.?re o m r e d Jarubron to
Lurnhnmsclf inonJune27tts11n
thcprironlerm
Jacobson, 47.1% the brother-inA---
In the Court of Common Pleas

of Lancaster County, Pennsylvania
KATHERINE H .
EVERS
Plaintiff/s
v.
J . HERBERT FISHER, J R .
DONA LOU FISHER
and
Defendant/s
Docket No.
103 5
.I9 84
SUBPOENA
DUCES T E C U M
To
r. !
. .M
S. .t. a. . n. . . .C
. . .a. t. .e. .r. b
. .o
..n
. . .e
F i n a n c i a l Management G r o u p , L t d .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1755 Orenon P i k e
L a n c a s t e r , PA
..............................
Law O f f i c e s o f Ranck & R a n c k , P . C . ,

I. You are ordered by the Court to come ~ O & P ( R % M W ~ X X ~ & X ~ R ~ X & E W ~ .
Duke & C h e s t n u t S t r e e t .
on Wednesday,
J u l y at
1 5 , 1987
10
Lancaster, Pennsylvania - - - - - - - - - o'clock,
a .m
totestifyonbehalfofthe P l a i n t i f f
in the above case, and to remain there (or in such other Court Room
or location to which the case may be assigned) until excused.
2.
P l e a s e b r i n g w i t h you - a n y and a l l l o a n a p p l i c a t i o n s .
f i n a n c i a l s t a t e m e n t s , a s s e t s u m m a r i e s o r a n y o t h e r document a t i o n p r o v i d e d t o you by J. H e r b e r t F i s h e r , J r . a n d / o r
Dona Lou F i s h e r a n d / o r M a r t i n Y . S p o n a u g l e , E s q u i r e a n d / o r
F i s h e r - S p o n a u g l e I n v e s t m e n t Group. l t d . a n d / o r F i s h e r S p o n a u g l e R e a l t y Co. o r a n y o t h e r e n t i t i e s owned o r
c o n t r o l l e d b y J. H e r b e r t F i s h e r . J r . , Dona Lcu F i s h e r a n d /
o r Martin Y . Sponaugle.
3.
I n l i e u of a p p e a r i n g i n p e r s o n a t t h e s c h e d u l e d D e p o s i t i o n
d a t e , you may, i n l i e u of a p p e a r a n c e , make p h o t o c o p i e s o f
a l l r e q u e s t e d d o c u m e n t a t i o n a n d d e l i v e r i t by o n e week i n
a d v a n c e of t h e s c h e d u l e d D e p o s i t i o n d a t e t o t h e o f f i c e s o f
M i c h a e l H . Ranck. E s q u i r e o f Ranck & Ranck, P . C . , 1 0 1 E a s t
C h e s t n u t S t r e e t , L a n c a s t e r . PA 17603.
(SEAL OF
THE COURT)
By the C o w ,
Dated: .......Ju neBQ.,..

1 9 8 . 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
M i c h a e l H. Ranck. E s q u i r e
.................. Par ..Ranc.k. . & Ranck .,... P.. C ................,
Attorne /s or P l a i n t i f f
E a s t C h e s t n u t S t r e e t . P.O.
Address:
L a n c a s t e r , PA 1 7 6 0 3
iOi
10-
....
Pror
Box 1 5 2 4
If witness is to producc daumcnlr. cic.. add iddntionrl w m r a p h rcrdiw "2. And b r i q with you . . :' [rpccih what daumcnir, and. if svbpocru is addmud
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mltonm a m k
SERVING
CENTRAL PENNsYLvANtb
M E M B E R FDIC
LANCASTER. PENNSYLVANIA 17604
STANLEY J CATERBONE
433 W MARICN ST
LANCASTER PA 1 7 6 0 3 - 3 4 1 6
1057
0002
D I R E C T I N Q U I R I E S TC
717-291-2591
0
0
32
LAST PAGE
l FUND
ACCOUNT NO.
OESCRIPTION OF A C T I V I T Y
REFERENCE
9 9 0 0 - 6 9 4 .7 ~6
BALANCE
4~786.62
3r 7 2 1 - 0 3
2r 3 3 0 . 7 9
00
95.79
-00
3.033.07
*
nou
00.
CH
I N D I C A T E S S K I P I N CHECK NUMBERS
HECK N
MOUNT
----
SERVING
CENTRAL PENNSYLVAN\A
MEMBER FDIC
LANCASTER, PENNSYLVANIA 17604
STANLEY J CATERBCNE
433 W MARIGN ST
LANCASTER PA 1 7 6 0 3 - 3 4 1 6
DIRECT I N Q U I R I E S TO
717-291-2591
1C57
0002
C
(
3i
PAGE
(ECKING
ACCOUNT NO.
0556-0114t
498-0:
66,670, 2'
679126.1,
42-22
AN^
U S STATEMENT BA ANCE AS O F 6
ITS
! 2 DEPOSITS
14 +&&%To
3 6 CHECKS AND
1 5 OTHER D E B I T S
BALANCE T H I S STATEMENT AS OF 0 7 / 1 0 /
3..2,0 R E G U L A R E R ~ ~ G ~E:FljbpG'E:;AN.O
.E
. , . %5
EFT S E R V I C E C H
:.-. '!i- :",,

#******************************************************
,,
E LEOGER B
UM LEOGER BALANCE
LABLE BALANCE
31'P A I D
l O E S f R I P T I O N OF A C T I V I T Y
:.,
CHARGE CYCLgy ~
~ ED MBALANCE
~
X
M l N I U U H COLLEC ED BALANCE
****a
~
C
11085.33
24.537- 75
REST CYCLE I ~ ~ X R f f ~ I ~ ~ T H H E L D
.08
REFERENCE
AMOUNT
BALANCE
- ---
mlton'J''F$mnk
SERVING
CENTRAL pENNsyLvAN,b
hiENitiH F 3 I C
STANLEY J CATERBGNE
4 3 3 W MARICN ST
LANCASTER PA 17603-3416
NO
,P94*
'197
loo
203
8'06
0
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~
1057
0002
0 1 RECT I N Q U I R I E S T O
717-291-2591
C
3;
AMOUNT
25sCOC-OC
100.00
100.00
317.00
100.00
31 7 , 00
100-00
48.87
----
----
SERVING
CENTRAL PENNSYLVA
M t M R E R FUlC
LANCASTEA. PENNSYLVANIA 17604
STANLEY J CATERBCNE
433 W MARION ST
LANCASTER PA 1 7 6 0 3 - 3 4 1 6
DIRECT I N Q U I R I E S TC
717-291-2591
1057
0602
-- - PAGE
M CHECKING
ACCOUNT NO.
INDICATES
0556-
hHfSK 18UnnARY
CHECK NUl48ERS
TOTAL A C T I V I T Y CHARGES
L I S T E D BELOY
TD T A L BALANCE CRED iTSTOT~,jt&ggk
NET S E R V I C E CHARGE'
I eC****************+***********w*****
I : T I V I T Y CHARGES SUMMARY
BANK B Y PHONE PAYHENTS
CHECKS
************+*.
TOTAL A C T I V I T Y C H A R G F S
I L T O N FUND
'i.
: ., .., 'g!,?,:',
.i, .,
. . " . .<. ..~.:, .,
'
.--
..
';, . .
',,
..
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ACCOUNT NO.
I E V I O U S STATEMENT BALANCE AS OF Q6/ 0187

0 D E P O S I T S AND
3,OT
R
1 CHECKS AND
, l 0 ,CN#ER
I D I N G BALANCE T H I S STATEHENT A S O F *07
- 0 0 REGULAR SERVICE CHARGE AND
5s 5,
3
-1
8.6.
C ~ * # * * * * * * * * * * * * * * ~ * U. +. *.z,'.:.
~.. *...-*L
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~ *:;.:*,,;ms* ' *h$&i*+*#**+**+***++
+*~~~~~
.,. '...i?'*,x...,.,.-r;Ki'M:LRW.:
1 ERAGE LEDGER BALANCE

1 N I U U M LEDGER BALANCE
i Y E S T A B L E BALANCE
.IS;
N
2*403:g:w..
*..&i&&@&fgt
S E R V I E CHARGE CYCL
' TEREST
f
9900-
P A I D T H I S YEAR
YS T H I S CYCLE
.,.>
& ~ '
2,403. 4 9 , . , . :,? ..,-:
..*$
INTERE T
632.
..
..
,,d
1 D~E S C R I P T I O N OF A C T I V I T Y
1 110 B E G I N N I N G BALANCE
1 4 11 FUNDS TRANSFER T O
ACCOUNT
55601148
. / 1 2 FUNDS TRANSFER TO
CCOUNT
556-01 148
1 41,
UNOS TRANSFER TO
ACCOUNT
556-01 148
..,
;;':.:'
..,-,L:,;-;.X
ti.
- .. .
~ ~ R f # & ~ $ & & ~ E LtO j, j~YEAR

VG&GOCLEG*EO
BALANCE
2.4<
2.41
*,.? * ai,:>@@$;@;.*#i*$$@;*iggwf.&
. ..:,,
.j*:,+*:***&$m7. :*$*,:,+&..<,., ?*fl'*$+T>ij;,,
1 4
RUATIO
.,.,
,,
REFERENCE
AMOUNT
B Al
5.5'
5.5'
5 v O(
4.8'
- --
-------
B'hlton
SERVING
CENTRAL PENNSYLVANIA
MEMBER F O C
LAMCASTER, PENNSYLVANIA 17604
MICHAEL CATERBONE
STAfuCEy J CATERBCNE
2 5 5 B U T L E R AVE
CANCASTER PA 176Cl-6308
1057
0'202
DIRECT I N Q U I R I E S To
717-291-2591
SERVING
CENTRAL PENNSYLVANIA
M E V E E R FDIC
----
MICHAEL CATERBONE
STAhCEY J CATERBCNE
255 BUTLER AVE
LANCASTER PA 176C1-6308
OG02
1057
DIRECT INQUIRIES TO
717-291-2591
PAGE
A R CHECKING
ACCOUNT NO.
i W S STATEMENT BALANCE AS O F
0 O E P O S I T S AND
0
0 CHECKS AND
iG BALANCE T H I S STATEMENT AS
F?Xl@R?ZGUCA~
S W V I CE CHARGE.
,
~.
04/05/87
OTHER C R E D I T S
0218-435 1;
1,157.;!
GF
AND
~.,-.d
.:,.,..
..................................
**************ti
S E R V I C E CHARGE CYCLE I N
1.157.15
lt 157- 15
1.157.15
'i-
. *.:;:.*.i,
, .
i..
RWATIO
A
M IVN IEMR
UM
~ ECOLL$CTED
COLLECTED ~
BALANCE
~ A N C E
lr 157- if
1.157- 1'
--
----
-, J
CATERBONE ASSOCIATES
1 3 5 5 9PEGCN P I K E
LI~~CASTER
PA 1 7 6 0 1
1C57
OOC2
DIRECT I N G U I R I E S TC
717-291-2591
5 - 2 7 - 8 7 To 6-30-87
'h.
t D E S C R I P T I O N OF A C T I V I T Y
?
i
\
dL3IPrNIIIG ePLaucE
tU?Ji;S T R A N S t E H T l i
A.C-CBU NT
556-GL18O
FUNDS TRANSFER TO
ACCGUNT
550-cl180
1UTEG.iST CREDIT
LAST PPGE
ACCOUNT NO.
F. !.l N l.
)
REFERENCE
9901-462t
BALANCE
bMOUNT
5-25-07
4,168- 1
4 , 167.2
3.954.6
17.06
6-30-87
3,971.7
FARMERS
FIRSTWK
P O . BOX
102. LITITZ. PA 17543
S J CbTERJONE 4ScCOIATES
1755 TRES3N P t Y E
L A N C A S T E R PA i7601
CIJSTOVFR NUMBER
0232102500
PAGE
1
4-30-87
TO
5-29-87
-----
..............................................................................
' P R E V I O U S BALANCE
. 01
NUYBERITOTAL CREDITS
REGULAR C H E C K I N G
53.13
ENCLOSURES
NUNf3ERITr)TAL D E B I T S
FEES
NEW R 4 L A N
6
PWNSIAPPOINTMENTS
I 1Z
--
RESULTSIEXPENSESIETC
- ---
- -
MESSAGES RECEIVED
-
--
~ ~ % ~ B /FOR
~ T [ Sun
E M~o n
Tues
Wed
Thur
~4
[C#rcleOne]
1
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i
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mML"
.-
--
/ FBI ties Guerin to illegal military sales

1 Agent charges that arms were shipped to South Africa
114LhYear-No. 35,427
METROPOLITAN
LANCASTER.PA.. WEDNESDAY. MAY IG.14YU
~s$m.-k
~
~Pri, ~
Commonwealt
National Bank''''
A Mellon Banku'""
July 6,
1987
Mr.
2323 N e w D a n v i l l e P i k e
C o n e s t o g a , PA 17512
M r . S t a n l e y J. C a t e r b o n e
c/o F i n a n c i a l Management ~ r o u p , ~ t d .
L a n c a s t e r , PA 1 7 6 0 1
I n Re:
1978 P i p e r A i r p l a n e
PA 31-325
M a n u f a c t u r e r s S e r i a l Number 31-7812065
S i m p l e I n t e r e s t A i r c r a f t R e t a i l I n s t a l l m e n t C o n t r a c t and
S e c u r i t y Agreement D a t e d J u n e 1 2 , 1 9 8 7
1201-5011006
Dear M r .
3
~.
Caterbone:
T h i s l e t t e r i s to a d v i s e you i n w r i t i n g t h a t o n J u l y 2 ,
1 9 8 7 , t h e Commonwealth N a t i o n a l Bank r e p o s s e s s e d y o u r 1 9 7 8 P i p e r
A i r p l a n e PA-31-325,
Mfg. S.N. 31-7812065, p u r s u a n t t o t h e terms
o f t h e "Simple I n t e r e s t A i r c r a f t R e t a i l I n s t a l l m e n t C o n t r a c t and
S e c u r i t y A g r e e m e n t " d a t e d J u n e 1 2 , 1987 ( r e f e r r e d t o h e r e i n a f t e r
a s " A g r e e m e n t " ) a s a r e s u l t of y o u r d e f a u l t u n d e r said A g r e e m e n t .
I t i s my u n d e r s t a n d i n g you a r e a w a r e o f t h e r e p o s s e s s i o n
p r i o r t o t h e r e c e l p r or t n l s l e t t e r .
-The d e f a u l t s u n d e r t h e Agreement which p r o m p t e d B a n k ' s
a c t i o n are a s f o l l o w s :
1.
F a i l u r e to provide adequate insurance coverage:
a.
I n s u r i n g t h e p l a n e f o r t h e amount owed b y you w h i c h
i s s e c u r e d by a l i e n a g a i n s t t h e a i r p l a n e as r e q u i r e d under
P a r a g r a p h 7 , " A d d i t i o n a l P r o v i s i o n s " o f Agreement.
3
-
b.
Naming Bank a s l o s s p a y e e r e q u i r e d u n d e r P a r a g r a p h
7 , " A d d i t i o n a l P r o v i s i o n s " o f Agreement.
J
The Commonwealth National Bank. Continental Square. York. Pa. 17405
(7171 8 4 8 - 1 5 3 1
c. Covering normal and usual losses and damages

required under Paragraph 7, "Additional Provisions" of Agreement.
2. Removal of the plane from the business premises of
Lancaster via ti on, Inc. to the business premises of Romar
Aviation, without informing Bank in writing pursuant to Paragraph
3 of "~dditionalProvisions" of Agreement.
3. Immediate and eminant intended removal for an indefinite

period of the airplane without prior written notice to Florida
without informing Bank in writing pursuant to Paragraph 3 o f
"Additional Provisions" of Agreement.
As a result of the defaults, Bank has exercised its remedies
under the Agreement to:
1, Accelerate the entire amount of principal and interest

to be payable over a period of time so that all principal and
interest is now immediately due and payable, thus abrogating the
amortization schedule set forth in the ~greement.
2.
T o take possession of the aircraft.
Furthermore, Bank intends to liquidate the collateral after

July 27, 1987, if you do not pay in full the amount owed to the
Bank by July 24, 1987.
The amount owed is:
Gross Balance
Interest to 7/7/87
Dealer Reserve
$94,000.00
695 -28
15.60
Total
$94,710.88 plus all costs of

repossession, storage
removal, maintaining
and insuring.
To prevent the sale, you must pay the above-mentioned amount

in cash, certified check, treasurer's check, cashier's check or
money order by 5:00 p.m. DST, Friday, July 24, 1987. Please
contact the following person for the exact amount:
.Larry W. Snyder
150 South 43rd Street
P.O. Box 1010
Harrisburg, PA 17108
(717) 561-3549
The disposition and sale of the airplane will occur:
1.
DST.
At any time after Monday, July 27, 1987, at 9:00 a.m.
2.
At the premises of Lancaster Aviation, Inc. at Lancaster
Airport, RD # 3 , Lititz, Lancaster Pennsylvania.
The sale and deposition will be by either public or private

sale and will be conducted in accordance with the requirements of
Section 9-504 of the Uniform Commercial Code as adopted in
Commonwealth of Pennsylvania.
Any proceeds resulting from the sale or disposition of the
aircraft will be applied as follows:
1. Costs of repossession, retaking, storing, holding,
insuring, maintaining, securing and preparing for sale and
selling of airplane as well as reasonable counsel fees.
2. Then to all principal and interest due under the

Agreement.
In the event the disposition or sale does not satisfy the
entire indebtedness, you will be obligated f6r any-deficiency and
the Bank will take the appropriate legal action to collect the
deficiency.
Very truly yo
IS,
pmd+?
Larry W. Snyder
Manager
Consumer Loan Collections
LWS/mjb
cc:
J. Robert Baker, Collection Dept., File
THE PLANNER'S SECURITIES GROUP,
INC.
HEMORAND UII
TO :
Stan Caterbone
FROM:
Kathy A . D i e h l
R e g i s t r a t i o n Administrator
DATE:
J u l y 8 , 1987
P l e a s e b e a d v i s e d t h a t -your s e c u r i t i e s l i c e n s e w i t h The P l a n n e r ' s

S e c u r i t i e s Group, I n c . h a s been t e r m i n a t e d e f f e c t i v e . J u l y 6 ,
1987.
P l e a s e r e t u r n t h e Compliance Manual which was a s s i g n e d t o you.
We wish you s u c c e s s i n your f u t u r e e n d e a v o r s and hope you w i l l
C.,
c a l l on u s i f we c a n b e o f f u r t h e r s e r v i c e t o you.
cc : Bob Kauf fman
ACTIVBF$E%FOR
sun
on
Tues
lC8rcle Onel
July 10, 1987
Eden Park I1
1755 Oregon Pike
Lancaster PA 17601
Re:
Robert F. Kauffman
Eden Park I1
1755 Oregon Pike
Lancaster PA 17601
WILLIAM 0. UMIKER
TRUST AGREEMENT
Dear Messrs. Caterbone and Kauffman:

Notice is hereby given to you that I hereby cancel Trust
Agreement dated October 17, 1986, of which I, WILLIAM 0. UMIKER,
was Settlor, and of which Stanley C. Caterbone was Trustee and
Robert F. Kauffman was Alternate Trustee.
('j
I will be calling to make arrangements to return any and

all assets in your possession to me.
<~.
Thank you for your many courtesies in this matter.

Respectfully yours,
WILLIAM 0. UMIKER
COMMONWEAL~HOF-PENNSYLVANIA)
COUNTY OF LANCASTER
)
)
SS:
#*
A
ON THIS, the lo* day of

, 1987, before
peared WILLIAM 0. UMIKER,
me, the undersigned officer, personally
known to me (or satisfactorily proven) to be the person whose name
is subscribed to the within Letter of Cancellation, and acknolcledged
that he executed the same for the purposes therein contained.
IN WITNESS WHEREOF, I have hereunto set my hand and
notarial seal.
(SEA
My Commission Expires:
J u l y 1 0 , 1987
F i n a n c i a l Management Group, L t d .
Eden P a r k I1
1755 Oregon P i k e
L a n c a s t e r PA 17601
Re:
Robert F. Kauffman
F i n a n c i a l Management Group, Ltd.
Eden P a r k I1
1755 Oregon P i k e
L a n c a s t e r PA 17601
NORA A. UMIKER
TRUST AGREEMENT
Dear Messrs. C a t e r b o n e and Kauffman:
Notice i s h e r e b y g i v e n t o you t h a t I h e r e b y c a n c e l T r u s t
Agreement d a t e d o c t o b e r 1 7 , 1986, o f which I , NORA A. UMIKER; w a s
S e t t l o r , and o f which S t a n l e y J. C a t e r b o n e was T r u s t e e and
Robert F. Kauffman was A l t e r n a t e T r u s t e e .
I w i l l b e c a l l i n g t o make a r r a n g e m e n t s t o r e t u r n any and
a l l a s s e t s i n your p o s s e s s i o n t o m e .
Thank y o u ' f o r your many c o u r t e s i e s i n t h i s matter.

Respectfully yours,
NORA A.
UMIKER
COIMONWEALTH OF PENNSYLVANIA)
)
ON THIS, t h e
SS:
COUNTY OF LANCASTER
day o f
1987, b e f o r e
m e , t h e u n d e r s i g n e d o f f i c e r , p e r s o n a l l y appe r e d NORA A. UMIKER,

known t o m e (of s a t i s f a c t o r i l y p r o v e n ) t o b e t h e p e r s o n whose name
i s s u b s c r i b e d t o t h e w i t h i n L e t t e r o f C a n c e l l a t i o n , and acknowledged
t h a t s h e e x e c u t e d t h e same f o r t h e p u r p o s e s t h e r e i n c o n t a i n e d .
I N WITNESS WHEREOF, I h a v e h e r e u n t o s e t my hand and
n o t a r i a l seal.
(SEI
From the &sk of
...
ROBERT 0. ACKERMAN
519 CENTRAL AVE.
HIGHLAND PARK, IL 60035
(312)433-4500
PLANNER'S SECURITIES
CONSULTING SERVICES
Planner's Securities Consulting Services offers the independence

and expertise to help the client:
1. Develop an INVESTMENT PLAN
2. Determine the criteria for selection of an INVESTMENT

MANAGER
3. Evaluate investment managers, presenting only

those who can meet investment plan's needs
4. Monitor these investment managers' performances
within customer set parameters
5. Monitor monthly detail reports

Our structured approach saves a plan's sponsor, trustees or
individuals time and effort and allows them to retain control over
asset management.
PTY.
~ ~ t ~ t f e e i s b a t e d o n t h e m a r k e t ~ ~ l o l u e
d the. account, hrdudlng tush. as shown on fhe lnltlal and

gUatW oppratsd a cutodlan bank octhrity 4
..Th;e maw
auement tee k d e t e c m i n e d - m tto the f o l m scheduk
.
S I . ~ ~ ~ X K K ) C ~ M O ~ ~ ~ ~ V O ~ ~
.85%onnext
..
-75%on next
.65% on nad
-6% on next
s i m m o f ~orketva~ue' .
'
~1.OObXXKJ
0f;MarketWil~e
s l ~ I . l O O C 4MarketValue
R X B ) I ~ E m R T m l m
(~axabieor Non TcKable)
5 of 1%of Maket Value
Fees are prepoyable quatecly. @ d e m g emay be &ed

allocated per ciient )nmuctlons
and
INVESTMENT MANAGER
Dataform
Name
.(
Address
614 LANDIS AVENUE
i city/~tate/Zip
Ownership
VINELAND.
NEW JERSEY
e Feestructure
08360
800-257-7013
DONALD SULAM
SUZANNE GREENBERG
.JUNE 1 9 7 3
Date Founded
PARTNERSHIP
1 Affiliation
NONE
Tax-Exempt
fi Minimum
c Account Size:
S100.000
Minimum
Fee:
Taxable
Tax-Exempt
$1.500
Taxable
SEE ATTACHED FEE SCHEDULE
z Manage:
Equity
Only
Capital Markets Used: Stock lxl

Real Estate
Equity
Asset Mix in All
jEqJy Accounts as of
Balanced
Acwunts
Corporate
Bond
Telephone
Contact
Name
Contact
Name
CUMBERLAND ADVISORS, PTY.
Mutual Funds Managed:
Fixed
Cash
Income [ia Management (7 Other: MUNICIPAL BONDS
Government
International
Bond
(7 Cash IXI
Securities
(7
Futures
Options
Max Equity
CD' S
Other:
100 %
Min. Equity
CUMBERLAND GROWTH FUND
- In-HouseCo-Mingled Funds: .
Special Services (check one):
Active
Passive
NIA
Minimum Account
Size (specify):
Bond lmmunization/Bond Dedication

Municipal Bonds
Socially Sensitive (if asked, will not invest in "sin" stocks)
Convertible Preferreds
-
Convertible Bonds
Government Bonds
INVESTMENT STYLE:
attach statement of investment philosophy and style for each type of management.
f
send a copy o f your current marketing piece, contract(s), ADV andfiscal report.
@ 1886 Richard SchlMMh h Awcdates. Ud.The lnlonnatbn providedhaiein la oblalned lrom the investment manager named herein
.ndPublkly lvailaMe .wroes and la bePsMd to be rdiaMe, bul ma mpwmbtlon or wananly is made w to ks accuracy or axnpleteness.
1 1 u v c 3I MEN I
MANAtikH
Dataform
Name
Swanson C a p i t a l Management
Telephone
Contact
Address
4 6 0 0 Fashion Square Blvd. ~ t 109
e
& 111 Name
Contact
Cit~/State/Zi~ Saginaw, M I 48608
Name
Ownership
Incorporated
Affiliation
Minimum
Account Size:
None
Fee Structure
1%F~~~~
Taxable
$100.000
Stephen Swanson
Date Founded 1973
Tax-Exempt
$100,000
(517) 790-1291
Minimum
Fee:
Tax-Exempt
$1,000
Taxable
$1,000
In-HouseCo-Mingled Funds: 0
.
Active
El
Municipal Bonds
El
Convertible Bonds
Government Bonds
NIA
Bond Immunization/Bond Dedication
Socially Sensitive (if asked, will not invest in "sin" stodts)
Passive
Minimum Account
Size (specify):
rn
a
rn
rn
INVESTMENT STYLE:
Please a m h statement of investment philosophy and sty* for each
of manawment.
i nt"fe rend a m p y of your current marketing piece, wntract(s), ADV and f seal report.
d
01 s f l l c h d SChlmMh I ate^, M.Th. lnform6lbnpmvldad IwreIn b obtained fmm the inwamdnt mamger named herem
~ ~ ~ n W * ~ . . ~ b b e ~ t ~ b e r e ~ s b l e ~ b u l m ~ t l o n o r w ~ ~ k m & ~ t o ~ t s - ~ o r a m p
INVESTMENT MANAGER
Dataform
(818) 247-5330
Telephone
(213) 245- 7 4 6 1
Contact
Name
Richard A. Snyders
Contact
1 Name
Name
Van Deventer & Hoch

420 North Brand Boulevard, Suite 405
Address Glendale, CA 91203
cin//State/zip
Ownership
Date Founded
Chemical New York Cor~oration
Affiliation
Minimum
~ c c o u nSize:
t
Tax-Exempt
Taxable
$100,000
$100,000
1969
Minimum
Tax-Exempt
Fee:
(annual) $2.000
Taxable
$2,000
Feestructure 2% first $100,000; 1% next $200,000; 3/4% next $200,000:
2/3% all over $500,000

Manage:
Equity
Only
Capital Markets Used: Stock

Real Estate
Equity
Asset Mix in A l l
in/ Accounts as of
n/a
Mutual Funds Managed:
In-House Co-Mingled Funds:
Balanced
Accounts
Corporate
Bond
Fixed
Cash
Income
Management
Other:
Government
International
Bond
Cash [XI
Securities
Futures
Options
Max Equity
Other:
%
Min. Equity
none
none
Active
Passive
Minimum Account
Size (specify):
I3
Bond Irnmunization/Bond Dedication

Municipal Bonds
N/A
[7
Ed
I3
0
0
Socially Sensitive (if asked, will not invest in "sin" stocks)

rn
Convertible Bonds
El
Government Bonds
Ed
INVESTMENT STYLE:
ease attach statement of investment philosophy and style for ewh type of management.
M a copy of your current marketing piece, contractls), ADV and fiscal report.
a-
01986 Richud Schimarth &ksoda(es. m.~ h Infanutbn

s
prov~ed
m h is obtained fmm the lnvwtmnr manager named herem
."d prblidy .MIlabb wrcw mnd b belle& to be rel&e. bul mrepresentabon a wanamy k made as to its accuracy aampkrtemtss.
Van Deuenier 81 Hoch
4.0 North Brand Boulevard
Id
~1enda.k.California 9120)
(213) 247-5330/24;
Investment Counsel
FEE SCHEDULE
Fees are charged QUARTERLY in advance using the following
W A L formula:
Portfolio
Value
Fee as a % of
portfolio Value
First
$100,000
2%
Next
$200,000
1%
Next
$200,000
3/4 9
Amounts
Over
$500,000
2/39
Examples of V A L Fees:
Portfolio
Value
I
I
I
i
I
II
I
Annual
Fee
Fee as a % of
portfolio Value
750,000
7,167
0.96
1,000,000
8,833
0.88
2,000,000
15,500
0.78
3,500,000
25,500
0.73
5,000,000
35,500
0.71
pINIMUM ANNUAL FEE:
$2,000 PER YEAR
Note: No start-up or termination charses
..
.
.'
.'*
% - ----.
L.1; -.;
-._
-!--=.L--.
I
-__
PENSION A N D PROFIT SHARING COLLECTIVE INVESTMENT FUND
REPORT O N EXAMINATIONS OF FINANCIAL STATEMENTS

for the years ended December 31, 1986 and 1985
To the Board of Directors

~ari-isburg,Pennsylvania
We have examined the statements of assets and liabilities
of the
Pension and Profit Sharing Collective Investment Fund
as of December 31. 1986 and 1985, including the portfolio of investments as of December 31, 1986, and the related statements of operations and changes in net assets for the years then ended. Our
examinations were made in accordance with generally accepted auditing standards and, accordingly, included confirmation of investments
held for the account of the fund by the custodians, and such tests of
the accounting records and such other auditing procedures as we considered necessary in the circumstances.
.In our opinion, the financial statements referred to above
present fairly the financial position of the
Pension and Profit Sharing Collective Investment Fund as of December 31, 1986 and
1985, and the results of its operations and the changes in its net
assets for the years then ended, in conformity with generally
accepted accounting principles applied on a consistent basis.
We have also previously examined. in accordance with generally accepted auditing standards. the financial statements of the
fund for each of the three years in the period ended December 31,
1984; and we expressed unqualified opinions on those financial statements.
In our opinion, the financial information set forth in Note 4
to the financial statements for each of the five years in the period
ended December 31, 1986, is fairly stated in all material respects
in relation to the financial statements from which it has been
derived.
March 19. 1987
,f&Q
L,76
',."-
I . . .
.. . , .
:
- ;...
-.:.-::r-
PENSION AND P R O F I T S H A R I N & ' " , . COLLECTIVE INVESTMENT FUND

...
'
.?.-
-&:% ;
I v , - ! . ! : , 2 .:$?
.uI
h
"//...,.
! .
... . _...
STATEMENTS O F A S S E T S AND L I A B I L I T I E S
December 31, 1986 and 1985
ASSETS:
Investments at value (cost

$126,174,490 and $125,472,567,
respectively)
Cash
Accrued interest and dividends
receivable
Total assets
LIABILITIES:
Income due participants for month
of December 1986, payable
January 1, 1987 at rate of
$.697 per unit and for month
of December 1985, payable
January 1, 1986 at rate of
S.800 per unit
Accrued expenses
Total liabilities
NET ASSETS
Net assets are represented by:
Funds applicable to 1,093,410 units
outstanding, equivalent to
$131.00 per unit in 1986,,and
to 1,174,423 units outstanding
equivalent to $121.81 per unit
in 1985:
Consisting of:
Amounts invested by
participating trusts
Accumulated gain on securities
sold o r redeemed
Unrealized appreciation
of investments
Excess of accumulated redemption
value of units redeemed
over participants' cost
Undistributed net investment
income
111,304,255
116,450,421
24,250,255
13,163,605
15,432,951
15,944,284
(7,778,196)
(2,520,983)
28,780
16,695
$143,238,045
$143,054,022
See accompanying notes to financial statements.
'
PENSION AND PROFIT SHARING

COLLECTIVE INVESTMENT FUND
STATEMENTS OF OPERATIONS
INVESTMENT INCOME:
Interest
Dividends
Less investment advisory
fees
Net investment income
REALIZED AND UNREALIZED GAINS
ON INVESTMENTS r
Realized.gain from security
transactions (exclusive
of short-term investments)~
Proceeds from sales
C o s t of securities.aold
Net realized gain
46,156,866
32,383,816
35,070,216
29,263,026
11,086,650'
3,120,790
15,432,951
15,944,284
Unrealized appreciation
of investments:
Beginning of year
End of year
(Decrease) increase in
unrealized appreciation
Net realized and unrealized
gains on investments
(511,333)'
13,715,308
$10,575,317
$l6,896,09B

;
..:.....
,: ,;;,;. :. ;
*..--.
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PENSION AND PROFIT SHARING..COLLECTIVE INVESTMENT FUND

:
- 1
-.:.\
'e P,.-.->.
. ... -
.i-
;i;\:2:<z,:,
STATEMENTS-OF CHANGES IN NET ASSETS

FROM INVESTMENT ACTIVITIES:

Net investment income
Distribution of net investment
income to participants
Net realized gain from
security transactions
(Decrease) increase in
unrealized appreciation
of investments
Increase in net assets
derived from invest,
ment activities
FROM PARTICIPANT UNIT TRANSACTIONS:

Net proceeds from sales of units
(94,412 and 131,674 units,
respectively )
Paid for units redeemed (175,427
and 132,950 units, respectively)
Decrease in net assets
derived from participant
unit transactions
Increase in net assets
12,304,002
1S,040,381
(22,707,381)
(15,047,521
(10,403,379)
(7,13
184,023
16,903,83
$1431238,045
$143,054,02
NET ASSETS:
Beginning of year
End of year

4
NOTES TO FINANCIAL STATEHENTS, C o n t i n u e d
2.
Investments:
A summary o f
i n v e s t m e n t s is a s f o l l o w s :
/
.
i
:
..-.
December 31, 1986
fioney market funds

Bonds, debentures
and notes:
U.S. and foreign
governnent
obligations
Corporate bonds,
notes and convert ible debentures
Carmen and preferred
stocks
Insurance group
annuity contracts
4,427,800
35,103,995
$
4,427,800
Cost
-
6,399,600
39,445,939
5,049,732
5,774,937
_ _ _-
Decanber 31, 1985
Value
Cost
/,
.:
.. .
Value
6,399,t
34,665,221
37,598,:
9,738,720
$ 10,341,'
55,056,018
65,421,820
49,214,679
61,623,t
26,536,945
26,536,945
25,454,347
25,454,
P u r c h a s e s and sales of s e c u r i t i e s o t h e r t h a n United S t a t e s

Government o b l i g a t i o n s a g g r e g a t e d 5 3 6 , 9 7 1 , 2 8 1 and $34,885,320
i n 1 9 8 6 , a n d $23,754,759 a n d $ 2 2 , 6 3 8 , 0 9 3 i n 1985, r e s p e c t i v e l y .
P u r c h a s e s a n d s a l e s o f U n i t e d S t a t e s Government o b l i g a t i o n s ,
o t h e r t h a n s h o r t - t e r m T r e a s u r y b i l l s , a g g r e g a t e d $887,762 and
$ 3 0 0 , 0 0 0 i n 1 9 8 6 a n d $887,761 a n d 5 1 , 0 0 0 , 3 4 9 i n 1 9 8 5 , r e s p e c t i v e l y .
Continued
6
compeator's purchase before Far;

b Penrod was invited ta pardciregained control as CEO.
pate in the secret plan, but refused,
The Texas Court of Appeals sa
prompting the banks to retaliite by
thatFarah lenders went too far in co
attempting to destroy Penrod
trolling Farah management. " A
Far from conceding any points.
though the lenders may have be
the banks denied the charnes. and
to exerdre ledIimate le6
fled counterdauns seeking payment
tighuorto
jw&ble busin;
of about $1.5 b i o n borrowed by the
interests." the court said. 'their cc
I Hunt com~anies.and moved for -sumduct fail& to comport with the sta
mary judgkent on the claims.
dards of fair play.. .. [Farah] was en
The lender Liability theow of the
tled to have its atfain managed
Hunts' lawsuits is a Gent phe~UIecompetent directors and office
non Lender liability hrst athacted
..
widespread attention in 1984, when
The court also upheld a frd
the Texas Court of Appeals afXmed
daim based on a bank's wa?lings tf
the result (although it reduced the
it w u l d declare the loan m defa
$18.9 million award to $18.6 million)
- in S m National Bank of El Aw v.
when in fact the bank either had ma
no decision on the maaer. or d ~ dI
Farah Manufacturino Co.. 678
plan to call the Loan
S.W2d 661.
The court also upheld a dun
'At that tine,
was
daim based on the warnings ti
decided, we really thought it was a
hrah would be bankrupt and p
fairly isolated event:' said Mawy
lodred the next day if Farah were
Poscover of Donohue, Comfeld & Jen- A A Bany Cappello, B e Santa
kins in S t Louis "Now there are liter- Barbara. Calif., attorney who won a d e d as CEO.
ally stacks of lender liability cases multimillion dollar judgmd agaimt
DUTY OF GOOD FAITH
co&
in And it isn't just going one Eonk of America.
- /'
fdthough no separate daim T
way--a few of them are good cax law
~ in- made for breach of good faith,
for the lenders. IimitinR
- the scow of of lender l i a b i i c o n h u and
I their Liabilitv."
terferine in a boborrower's affairs not cowt discused good faith in its or
A. c airy Cappello, a Santa d w - k t h a borrower in good iaith: ion,saying a thrGat made in bad i;
. can be considered duress and that
Barbara Calif.. attornes. who won a and mirre~resentationand fraud
lenders should have acted in gt
m u l d i o n dbllar j u b e n t against
Bank of America in a lender liability MANAGEMENT CHANGE CLAUSES faith rather than making the false.
The Famh case dealt with bank misleading warnings.
suir. said he r e c M about 10 phone
The good faith theory got a
.
calls a 4from borrowers who interference, duress and haud
The dispute centered on W h boost in a 1985 decision. ILMC.
would l i e him to represent
Cappello says the big increase in h r a h s bid tn become CEO of Farah Inc v. I N i n g nust ca. 757 F2d
a clothing manufac- (6th Cu.), upholding a $7.5 mil
these lawsuits may be caused by sw- Manera1 factors. including a poor econ- turer. A management change clause in jury award that included puni
omy. and publicity about large judg- the Ioan ageement gave any two damages.
W C . a food broker in Kr
banks veto power ow any change in
ments.
Many lawsuits are' brought by thehemamgementofFarah,if We. Tenn,alleged its bank faile
fanners who fell victin~to the farm they considered the change. "for any advance funds under a loan ag
airis. he said Farmers who borrowed reason whatsoever, to be adverse to ment. The Sixth Circuit said the c
heavily when the value of their land . t h e interests of the banks." Anv galion of good faith implied in rn
was h@ are now suing their banks change that occurred despite th;. .contract covered by the U.C.C.
when the banks call the loans or insist banks'objections could be treated as a posed a duty on the bank to give
-lice before discontinuinn financ
on chanxes
in the farmers' manane- default
.
. . .. . . . .
--.. -.
merit. The weak economy also a
izk : The lenders, basing their author- :even though the bank h& a dis
the
--- banks. sourrim them to call loans 'ity on that clause. told company dim- ,.tionam r i a to make advances.
Since M.C. the good faith
they would 'COntinLe to hold in more ..:. tdrs that hrah w i s Unacceptable, and 'i.*.,
times. -.:, ..:....
. :..%..,.
.....:.:if he were elected CEO, the banlcs " ory has been the &is Gf many l e ~
liabiity lawsuits. focusing prim
'When there's good &es, 'the ' .would bankrupt Farah Man. .
on rhe e s t a b w e n t of a cours
banks work with their borrowers, roll and padlock it the next day.
Under the management of two dealing bemeen the bank and
over the loans, work it o r g 5nd another lender for them" C a ~ w l l osaid . lender-backed CEO's. the comoanv's borrower that the b o w e r expec
"But when times are &ugh' h u h got :position in the market dete&rat& . continue despite stnct enforcer
some banks in the country that are in .;and hrah assets were -sold to pay :provisions in the loan agreement
financial trouble. and thev mom ore-ii?interest and reduce the-outstandinn ...
e : v * ~ ~ hottest
e
new area of le
cipitaudy a@& the borkwr." >-.-27~~.bbility
on the loans. Some equipment :liabiity b a widerung of the breac
: . F a d and the cases that f o l
said to hnh competitors, M i t h e duty of good faithand nd t
:
lowed established three orimarv areai one of the Farah lenders 6nancinn the 'rim"said Ca~wilo.a Darmer in
Famh
__
'
. .
'
I1
~~
~~
2-
t sounds like an episode from legal theories such

!-sa
"Dallas."A group of hard-nosed Muciarv resvonsibiIity -na
bankers embark on a secret plan .>me with a buslnesto bankrupt two Texas energy compa- accountable for unfairnenies owned by a family of billionaires, lban or nustakes m
-a
e managemqt decisions
in order to aain control of offshore oil
I
I'
Wheeling and dealing, the banks

k a confuiential
~
information to the
energy companies' cornpentors and
hold off on r e s t r u m the loans
unhl they can work the best possible
terms.
But this isn't a soap opera, and it
h't Bobby and JR Ewmg The sons
of the lace oil billionaire KL Hunt,
Nelson Bunker, Lamar and W h
Herbe- have sued 23 banks and lendinn institutions chan!in~ that the
banks manipulated &ir-loan m c a conspiracy to destroy taro
Hunt-owned energy companies and
create an oligopoly wer oBhore drill-
Though it is not likely to break

new gmund in legal theory, the drama
inherent in this Texas-size ($138 billion m c h n e d damages) &suit has
drawn public attention to an emerging
I set of I d oroblems fa- the bankmg and hding communir;. The Hunt
brothers' Lpwsuit embodies v i r h d y
enry known theory inmrpora(ed
der the umbrella of lender liability.
I
I'
.o I
- \ /I
fi
I
I
Lender liability uses traditional cion, bad faith, breaCh of fiduciary
V I
BY DEBRA CASSENS MOSS
un;
Debm C a m Moss. a lawyer,

is a repolterfor the ABA JoumaL
duty, breach of conthct, fraudulent

misrepresentation, and violation of
the Sherman Antitrust Act, the Bank
Holding Company Act, and RICO.
The lawsuits indude allegations
that:
The banks controUed Penrod
.- Plaintiffs' lawyers hail recent and Placid's affairs to their own adlender liability iudnnents as an h- vantage. and delayed loan restructurp o m t curb i; th; power of credi- ing to-force the companies ta agree to
tors. The other side-banks and E- unremnable terms, such as a pay~ c i a linstitutions-foresee huge ment schedule that could not be met
losses for banks and as a result, more and a pledge of additional assets as
collateral
cautious lendinn wlicies.
.Many of the banks @anted
Another qt%ion is whether, as
critics charge, these suits are 6led pri- concessions and gay: better c&it
marily m 'stallii tactic to give the terms to other customers. some of
them Penrod and Placid competitors.
plainth% time to raise funds.
W Several banks promised to reThe Hunts' lawsuit w originally
fled as w.separate suits, and then nrucrure Penrod's loan before Februconsolidated The 6rst suif filed in ary 1986. but intended to break that
US. Dihict Court in Dallas last June. promise.
Some Placid creditors disaccuses the banks of crying to destroy
w Company closed con6dential information to pothe Hunts' Penrod D
and- Placid
O'i Comoanv. Its& $3.6 tential bidders for property that
Placid w attempting to seU to pay
biion in damages.
he second suit, ~ ~ b ey d
. k A ~ off its debts, and "sabotaged" efforts
Drilling and Placid Oil in July. charges bv Placid to refinance its debt with anthat the same banks engaged in a oiher bank
.The banla drafted a secret
price-fixing scheme to control offshore oil drilling and seeks $102 bil- plan in March 1986 to m a t e and control an offshore oil drilling oligopoly.
lion
By exercising certain creditors' rights.
the banks wodd determme which
THE THEORIES
The lawsuits p m c k on a litany borrowers would survive, and obtain
of Lender Liability theories: wrongful ownership interests in those compacontrol, domination. economic coer- nies.
~
~~
~~
. -~
.
. .- -.:
. . .. ....
.:-.
Herbert Hunt,
.. ... ....
bit,and Nelson .
. .
Bunker Hunt
;:.:. :.....;::
4 William
charge that
. .
; !,&.;:.+,,j
..banks hove con-
.L.~~..:::*
spired to destroy <

:.;
(heir energy ;.:-:
.:r,.
. ....
.
com~ania. ;.,..--.. :.
I.
.BA JOURNAL.I .MARCH !, ,1987

.a
..
.
.
,=. .>.
.. .
.. ....'-......
~
...~
..
... .~
Banking
Malpractice?
In August. 1984 a Texas court issued a

decision which shockd b a n k c o a s t - t m t .
In State Nar Bank v F a d M&. Ca.' two
Texas Court of Appeals upheld a S19 million
jury verdict against a group of fuwdal institutions for fraud durcSS. and inklltioflal intCt'fermcc
a
oorporalc powas. The
found that while
'endas may
to protectl~timstelegalrjghu
and
business intcfstS
conduct failed to
wagh'ng the
of fair phX.
Of Ihe ha
utility of their respctive conduct. Justice Shulte
decided that
bendis daivcd from
pamining the Icndm' interfamce
-I'y
upcacd thereby the harm to
from." By installing incompetent managanent
and pmmting the election of competent managmenS the ladm
Liable for all
damage the borrower suffered. including lost
profits.
A year later, wen again
when thc Sixth C-it
Cou* of appeal upheld
a 7.5 million d o h jury v&ft b.scd on a
lender's r d d to advance funds up to a
borrowerPscredit limit KM.C ca xNing
T~~ a . 3 the
found that the d-ion
by
a loan officer to cut ORfinancing with no prior
mntaau
.-
C?
i ~'
...
..
~678SW2d661,UIUCCRS764(19(U.T~A~ppU
Puo).
ScpumkrOrro6cr I986
notice "'amounted to a unilateral decision on hi

part to wind up thecompany":This constituted
's dutv of enmllaiLb
of e
a b-h
performanccw--t,
.ultimately resulted in the comvanv's collamc as
a viable -b
Sinv 1984, judgments against bank have
been coming in thick and fast, with more caxs
k i n g filed every day. With the advent of lender
liability law. it h clear that the days of the
one-sided balance of power between banks and
are ova, While lender liability a an
for years,
of to* law bar been in
it has only recently been applied extensively to
obtain relief for borrowers. Lender liability is
quickly changing traditional notions about the
rights of banks, and is setting new standards
a b u t legitimate conduct between banks and
borrowen.
T h e new standards are often being xt in a
spectacukr way in the form of multi-million
dollar judgments which include large punitive
damage awards. Last summer in California.
apple farmers and the owner of a apple dehydrating plant in which the farmers had invested
obtained a 47 million dollar jury verdict against
.,
,Id,.
690,
3757 F2d 752 (1985. CA6 Tcnn).
4 Id. at 763.
3
A B.y Cappello is managiog partner of a SanIa Barbara.

California law firm. A member
i-i
dealing or "bad faith breach". This tort is
grounded in the Uniform Commercial Code's
requirement that all commercial transactions be
mnn
encouraged by the bank to make terrain busi-
million. which included

court to a total of 66
and the rcmaind
represent one of the most far-reaching decisions
yet in the area of lender liability.
Duress
A third theory of recovery in thew caws is
example. if facts which should be kdxlowd to

Bad Faith Breach
arc true. or promises are m d e with no intention
One of the broadest basa for liability is
du&may be present.
breach of the covenant of good faith and fair Banks have also been found liable for supplying
false or misleading information to third panics
ll-J-'
"
of
who make credit inquiries about a customer.
Supaior Coun No. 112439.
epcomer. a.v M W ~ Flnvac CO., M) NM 680. threatening to call a loan due before the bank
459 PZd 842 (1969).
?Far&, lupn. u 686.
4
'UCC I-ZOI(19).
Financial Management Group Ltd.

Eden Park 11,1755 Oregon P l k e
800-211-8567
Lancarter, P A 1 7 6 0 1
800-312-1128 (PA only,
(..ROBERT E. KAUFFMAN
PRESIDENT
Millard Johnson
3450 Duff Avenue
T-z?c=+tol
PA
17601
Dear B i l l and Dattie:
I wculd like to inform you that Stanley J. Ca-ne

w i l l no longer
be servicing Financial. MaM.gem~t Group, Ltd. c l i e n t s in the -ter
area.
r,
w
Stanley has w e d his o f f i c e to Stone Harhr, N. J. ard is pusuing

WsineSS interests fmm that location. I have been informed that for the
near future Stan w i l l not serve c l i e n t s in Iancaster and may not handle
invesbrmts at all.
Fecple clc6e to Stan have asked wz to personally service his clients

until Stan can bring h i s other b u s i m s interests to a cl-.
~e
recognize t h i s separation m y be perrnanent as Stan has indicated a desire
to relocate.
As I rwiewed Stan's f i l e s , I m i z e d mmy people &o I
m e t while I trained and supervised Stan beginning in 1980. Other; 1 met
as a D i s t r i c t Nanager w i t h I E when they were my p x s o ~ clients.
l
I'm
looking forward to gettirq reacquainted and hope you'll continue to allow
Financial Management Gnxrp and myself to serve your invesbwnt needs.
I plan to call you within tke next two months concerning these
matters.
Should ym desire to discvss any issue prior to my call, please
feel free to a m t a c t me a t 569-4100 or 1-800-322-1128.
Rcbert E. X a u f m .
President
Sec~rltlcsOffercd through Planner's Serurltlcr Group. Inc.

A Reglncrcd BrokerlDealer
Member SlPC
Member NASD
Jacobson gets jail for role in bribe scam
die
e
ld
o
$
ila
o
ll"
U
,m
l ugh
u
r.fd
h
tm"gh
frad
~ m e ~ r e c r i n diwuafitying
p.
his"phltoUle1unds.
They areehargLog.mlClar(iis
nOtenUUedtoUammey h e c a w
he sllegodlr used extortim and
Of his to^ employees and r TY

bmadcaoter who workcd as s
mRsUhsnl 101 ISE. Gucrin LesLtfiedst (hetime.
Clark r a ~ "he
d had information
concerning i i l e ~ a shipments
l
to
SouUIAlrica. intorrnrtion on manipnlstingdala having to do with
01- audibm, information eoneorninp payoffs of tarctgn ofrici816, i n f ~ r m a t i o n caneernlng
midending UIe auditom ot the
eorplNtion:'Guc"nteatified.
GUctin said hc aid Clark II
mlUion and agmc81o psy more
beeauee he feared thc attorney's
ntlegrtlons, whether true o r not.
wouldwrerk his plans to a b t r ~ n
eritlcslly MededLundnforhir dctcnspemplre
Mter he "suceuibpd to blackmn4.:Cwrin had asid, "it bothered me'grestiy !I gnawed a t me
!,llhrsnddav'
Jacobson's sentenc
btrastanwriiW
OaugWendrh
eu
Farmcr Cnned C h e m ~ o n
~ i e r l d e nJaines
l
0 . chr#st,an.
scerrlng a six-year prlron ir.im
tordcrraudinethrgoremment
Of115 nliuion. rearlrd uatl,da~
belief and anger today upon
haar8nCthrl Carl E ~ a e ~
had r e c e i v d s ix*s,"nth
Eden Park 11, 1755 Oregon Pike

5 6 9 4 1 00
,
i..
Lancaster, PA 17601
.,
... .
7 2'r-J
STANLEY CATERBONE
Eden Park 11, 1755 Oregon Pike
569-4100
Lancaster, PA 17601
6c
--
VALORE, McALLISTER, WESTMORELAND, GOULD, VESPER & SCHWARTZ

A PROFCIClOhALCOf\mR*nON
MR. S T A N L E Y J (:A'TE:Iy<T:ONE
C/O F M G ACCOUNTING S E R V I C E S
1755 O R E G O N P I K F
LANCASTERt P A 17601.
STATEMENT +
009246
US. W I L L I A M h BETTY O'HARA
S U M M F F ; Y
T h i s s u m m a r y includes a l l t r a n s a c t i ~ n sup t o and including
t h e month end preceding t h i s statement.
Any c r e d i t s or r e c e i p t s
processed a f t e r that d a t e may nut he included and w i L L b e
reflected o n your next statement.
' C)
'
Less: fieta i n e r s
B A L A N C E
Fees for this b i l l
3 0
T o t a l a m o u n t of
New Balance Forward
t h i s bi L L
T O T A L B A L A N C E NOW D U E x - r x * x * a a x w x x u u x x x x
--

A PROFCIClOhALCOf\mR*nON
MR. S T A N L E Y J (:A'TE:Iy<T:ONE
C/O F M G ACCOUNTING S E R V I C E S
1755 O R E G O N P I K F
LANCASTERt P A 17601.
STATEMENT +
009246
US. W I L L I A M h BETTY O'HARA
S U M M F F ; Y
T h i s s u m m a r y includes a l l t r a n s a c t i ~ n sup t o and including
t h e month end preceding t h i s statement.
Any c r e d i t s or r e c e i p t s
processed a f t e r that d a t e may nut he included and w i L L b e
reflected o n your next statement.
' C)
'
Less: fieta i n e r s
B A L A N C E
Fees for this b i l l
3 0
T o t a l a m o u n t of
New Balance Forward
t h i s bi L L
T O T A L B A L A N C E NOW D U E x - r x * x * a a x w x x u u x x x x
ACTIVITIES FOR
Thur
Fri
sat
T ~ m eEsriActual
TS4101
185
h 8 ADqebSr
QL 90067
FEB 1
::mA~.Culcrr'b
SEE REVERSE
SIDE FOR
INSTRUCTIONS
s
t&--.
......-..
~-
FICTITIOUS BUSINESS NAME STATEMENT

THE FOLLOWING PERSONIS) IS (ARE) DOING BUSINESS AS:
lFictitious B&ess
1.
AUDIO SERVlcBs/mBarr sowD aooIOs
,- Street Address Cltb & State of P r ~ n c ~ pplace

al
of B u s ~ n e r s ~Cal~forp~a
n
2.
-1
Full name a e g l s t r a n t
ZIPCode
1137 north k c a d d e n Place, Lam Angrlem, CA
...
--
Name(~)
90038
( ~corporation
f
show state of ~ncorporat~onl
I
"side-
"ress
City
State
Zip Code
madden Place, La6 Angelas, CA 90038

&
Full name of Registrant
(if corporation - show state of incorporation)
1137
lQorth
Res~denceAddress
1 (1
City
State
--
bullname of Registrant
ZiPGde
(if corpaatlon . show state of inmporatio")
I
i
Residence Address
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Full name of Registrant
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Stale
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Typed or Printed--
---
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Name Statement
--
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.efile - Statement expire

December 31.<*
File No.
'
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on &re indiuted by file sump a b
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IHEREBY CERTIFY THAT THIS COPY IS A CORRECT COPY

OF THE ORIGINAI.STATEMENTOL1 FILE I N M Y OFFICE.
!
7.
2 4
a'%>
ry.
1
THE L m ANGELES DAILY Y)URI\IAL
c-
Y)URNAL OF COMMERCE - REVIEW
c.uus+n( ,am
210 South & r w S t r r t . P 0 110. Yo16

L a A W k . Wltc.",. Oa)+l
T*.pho12131 6252141
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Signature & Title
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1 This statement was filed with the County Clerk of

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tar and idle lil~npunless you show relaonible cause for not payon. the tax when due (see 4nstructlonO);,
r1.m .swt to 11Ia a 1981 plt 114 ralurn (form 709) due p h d n a t)r clow of Uw W h dwda awmc of 19ll.chclchnba8 0.
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to file F o m 1040 for tho-lender
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w hwal year return until .................... 1................-.- L
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If p. . u do not *Ip.Ct to 0"
enter zero (0).
B Federal Income tax withheld
95 1.981estimated tax payrnwta (include 1980 ov&&nt

1: Other payments (sea instruction E)
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G lncome tax balance due (subtract line 5 fmrn line
1). Pay In full with mlr form
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,r Total gift tax you expect to owe for 1981 (w inshuctian E).Notc This i s the amount you oxput to gw
r for the giit tax return due following the cJow ot me tounh uI*nd.r q u e r h r d 1981
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.ignature and Verification

I If R e p a r d by Teapayer.-Undu
puraltles ofperluy, Ideclen that Ihave bumlnd'thla form, lndudinp eccMnpnylng schadula
.!a
StdtcllIents, and to the best of my knowledge and bllef. it Is truo, corn(..ndcomplete.
.
IfPrepared by Someone Other Than ~w:&Und.rp.d.y,a of pwfuy, I
I h& &mi&
rrwnpanying schedules and statemants and to Ui. best of my I&i n d bollof. .kbtiuq- ai+,. .dd
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buthorized to prepre this form; and that Iam: . '
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pwd cause. MY relationship toihetar&y6rand th.'iwii+v@;tli,

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ceitified pubnic accountant qualifiql to p m c t b In (*panjurId)_
1 A panon anmlled to practlce beforethe Internal Revenue S.rvlu.
nl h authorized agent holding' a power of .ttorn+. (YOUn w d not u n d in the power of ~ m o unhss
y
requv.)
1 A penon in close personal br bu.slnau rektion~hlptq Uu bxpem annot ilgn.pilstormkcaliq of l l t n . 4 ' i ) b l r ~
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"
BROUT&
COMPANY
CERTICIED PUBLIC A C C O U N T A N T S
v E r 10'1
. LOS A N G Z L E S
W O R m l S V O l N . N d.
1900 A V E N U E O F T H E S T A R S
LOF. A N G E L E S .
213
Dear
7-i 3
CAL~FORN~A
90087
553-1941
'
E n c l o s e d i s ttie o r i g i n a l and o n e c o p y o f t h e County o f L o s A n g e l e s B u s i n e s s

S t a t e m e n t a s o f Marcti 1. 1982.
The o r i g i n a l s h o u l d b e s i g n e d b y you a n d p o s t m a r k e d o n or b e f o r e A p r i l 30. 1982.
Mail to:
County o f Los A n g e l e s
Office of t h e Assessor
dPFF.) 4
@A
9 /YO(
The d u p l i c a t e c o p y i s f o r y o u r f i l e .
BROUT h COMPANY
Enclosures
VALORE, McALLISTER, CZIESTMORELAIID,

QOULD. VESPER & SCHWARTZ
1115 A T L A N K A M M
s u m 511
cw
ATLAN~Ccm. NJ
MP-Hid539
COUNSELLORS AT LAU1
Ym PAClRC AVUIUt
MAINLAND PROFESSIONAL PLAZA

535 TILTON ROAD
NORTHRELD. N] 08225
(a91645-1 i l l
P.O. BOX 311
. N1 O
B
m
MP.7IP-IlIl
IN REPLY REFER TO
Northfield
87/346-001
July 20, 1 9 8 7
554 Berkeley Road
Stone Harbor, NJ 0 8 2 4 7
Re:
Caterbone
O'Hara
~ l e ~ sfind
e
enclosed our July 17, 1 9 8 7 bill in the above
matter in the amount of $206.25 for services rendered from June 9
through June 16, 1987.
As you can see from the summary statement
attached to the front of the bill, we have deducted this amount
from the $500.00 retainer, leaving a credit balance of $293.75'
against which subsequent fees will be charged.
If you have any questions concerning the enclosed, please do
not hesitate to contact me.
LJS:rlh
Enclosure
NLN
JOSEPH F. RODA. P.C.

ATTORNEYS AT LAW
301 C4PHER BUILDING
36 E A S T I(INC. STREET
LANCASTER. PENNSYLVANIA 1 7 6 0 2
TELEPHONE 17171 3 9 7 - 3 7 9 1
JOSEPH F R O D *
PAUL 5.R O M A N O
July 22, 1987

554 Berkley Road
Dear Stan:
Enclosed is our statement for services and costs for
July 1, 1987 through July 7, 1987, and an itemization of the
services and costs involved.
Joseph F. Roda
JFR: dlb
Enc.
JOSEPH F. RODA. P.C.

301 C I P H E R BUILDING. 36 E. KING S T R E E T
L A N C A S T E R . P E N N S Y L V A N I A 17602
J u l y 22, 1987
CATERBONE
ITEMIZED PROFESSIONAL SERVICES

Date
7/1/87
Attorney
JFR
JFR
JFR
Description
C o n f e r e n c e s w i t h S. C a t e r b o n e ;
telephone c a l l f r o m J .
Jamouneau, E s q . ; l e t t e r t o
R. K a u f m a n .
H ours
-
3.1
Telephone c a l l s t o and f r o m S .
C a t e r b o n e and f r o m R . K a u f f m a n .
-4
L e t t e r f r o m R. K a u f f m a n .
.1
JOSEPH
F. RODA. P.C.
3 0 1 C I P H E R B U I L O I N G 36 E K l N G STREET
LANCASTER PENNSYLVANIA 1 7 6 0 2
I
CATERBONE
July 22, 1987
FOR PROFESSIONAL SERVICES RENDERED:

~ i the
r
period July 1, 1987
through July 7, 1987:
COSTS ADVANCED:
Copying costs
Long distance telephone
TOTAL COSTS ADVANCED:
TOTAL PROFESSIONAL SERVICES AND
COSTS ADVANCED:
$74.48
1.00
14 GREENFIELD ROAD, LANCASTER, PA 17602 PHONE (717) 392-0641
July 2 3 , 1987

554 Berkley Road
Dear Mr. Caterbone:
On July 14, 1987 we learned you have relocated to Stone Harbor. Until this
morning, I was unable to reach you to discuss the matter of the computer
lease running with us.
you know prior to June, 1987, your credit history with us was execellent
with all obligations paid current. However, we now find the lease is two
months in arrears, with both the June 1 and July 1 rentals being outstanding.
In addition we learned the computer is actually in the shop at Dunlap and
Kerst with an unpaid repair bill of $524.00 levied against it.
As
We have excercised our rights under the the terms of the lease, Paragraph
No. 17, and effective July 16, we reclassified the lease into a default
category and have repossessed all of the remaining equipment from the offices
of the Financial Management Group.
For you to satisfy your obligations to DaLa Company and to allow us to return
the computer to you we will require full settlement of the outstanding balance
on the lease. This amount is $1,939.52 plus the balance owed on the repair
service of $524.04, for a total of $2,463.52, payable imnediately to us
by cashiers check of money order.
If we do not have settlement of the lease by August 1, 1987 we will proceed
to sell the s y s t ~iii order to recoup what ever funds are owed on the system.
Should we fail to recover the full amount owed, we would need to look to
you to settle any remaining balance due.
In my discussion with you today, I informed you of an offer received from
one of our suppliers for the computer system listed on the lease. Their
offer is in the amount of $1,500.00, which represents 35% of the original
cost.
You verbally authorized me to proceed with the sale, stating you have no
interest in having the computer back and indicated your written authorization
for the sale will be mailed to me today.
Accordingly, I will implement the sale for the $1,500.00, and satisfy the repair
bill at Dunlap and Kerst. You will find enclosed our invoice in the anount of
$963.52 representing the balance owed to satisfy your obligation to DaLa Co.
Please feel free to call if you have any questions in this regard.
Sincerely,
baul ~erstine
General Manager
PD:em
Enclosure

,,".K,.,
WAMCMC".
G..O",
,,o
EXECUTIVE VICE PRESIDENT
554 Berliley Road
Stone Hartwr, NJ
( W )%7-5184
08247
J u l y 24, 1987
J i m Bly
Sourcz C a p i t a l
6725 (Xlrran Street
W e a n , VA
22101
. .
Dear J i m :
Enclosed is t h e p a c k * f o r t h e Real E s t a t e Deal as per o u r
c o n v e r s a t i o n . Plg i v e me your response as to a n i n d i c a t i o n of i n t e r e s t as
= a n as p o s s i b l e so t h a t I may c o n t a c t someone else if you are n o t i n t e r e s t e d .
I a p p r e c i a t e your t i m e and c o n s i d e r a t i o n .
Zk
ley J. catertxre
Securltl~sOffcred through Planner's Securnler Group. Ine.

Member StPC
Member NASO
A Reglitered BrokcrlDealer
I.
Scope of B u s i n e s s
Servioes and f u n c t i o n s of SourWilliams.

111. S t r u c t u r e of S y n d i c a t i o n
11.
IV.
V.
Costs
C a p i t a l , I n v e s t o r / I n v e s t o r s , and Bennet
of S y n d i c a t i o n - Bennett W i l l i m F i n a n c i a l Center
Financial Projections
sWswpE..a...~~-~.~.s2
is a
follwing
The
syndication
and
Im.
The
of
to
Bennett
Williams,
Im.
to provide
the
marketing of the 2.6 million o f f i e building to b e constructed
i n downtown York,
function
pr-1
This prqms-a1 is an attecrpt to describe t h e role and
PA.
Swrce Capital
along w i t h the relationships of Bennett Williams,
and the Investor/I-tors.
of the p r o j e c t is to r a i r e the ~
plm
million
(excluding
it
entirety
until
will
be
funded
will
provide
rcapital /approximately 2.6
syndication f e e s ) and to mange the partnership t h r w g h its

dissolved.
is
As per previous conversations, t h e building
m n p l e t e l y from partnership proceeds w i t h t using debt, which
a steady stream of inccme, projected to be between 12%
the p o s s i b i l i t y of refinancing t h e p r o j e c t around t h e =nth
15%w i t h
year i n order to
return the o r i g i m l capital back to the investors.
R1G w i l l
which
also consider developing a F i ~ r C i a S

l e w i c e m n t e r , similar t o that
e x i s t s i n Lamaster.
responsible
for
the
1-
While Bennett Williams w i l l be the major t e n a n t and
up,
f%2 w i l l
through w n s i o n of t h e i r business to York.
consider also a i d i n g i n t h a t pr-
I.: DELI% E . B F T T . ..WIUI.W.-zTK GU'E~...~~~E~..IG..~?.,.)

T k Gewral Partner (GP) will be responsible for t k following:
a).
Development
The G.P.
will be r-nsible
for all dsvelcpwnt
involved in t k project.
b).
Construction - The G.P.
will be r q n s i b l e for all construction
pbses associated with the project.
c).
Lait-g - All leasing responsibilities will be of the G.P.

G.P.
The
will have the task of obtaining l a occupancy of the building
i n a reasomble and timely fashion. The G.P.
will also be
responsible for determining the fair market value of the =paand for attracting attractive t e ~ n t s
with favorable leasing
agreements to maintain a favorable and healthy cash flow.
d).
Management
- The G.P.
will be m n s i b l e for the managsent of
both tenants and the building in order to obtain maximum
income and future appreciation given favorable eoomnic oonditions.
LL W L I C N E ~.%...%!?IT.K
MG, Ltd. w i l l be r e q x n s l b l e f o r the follcwing services and factors:
a).
The Syndicator w i l l be r e n s i b l e f o r a l l legal

and a-nting
services rezdsd to register the partnership with
the a p p r w r i a t e regulatory authorities i n order to solicit

investors.
b).
Prospectus - The Syndicator w i l l be reqmnsible f o r the development
to be used to solicit investors.
and prmhction of the pr-tus
c).
Marketing
- The Syndicator
w i l l be responsible f o r the marketing
and s o l i c i t a t i o n of investors i n order to r a i s e the necessary

capital to f i m n c e the project.
d).
Distribution of ~ r o c e e d s- The Syndicator w i l l be responsible f o r

a-nting
and reporting functions necesrary to provide investors
w i t h the progress and performance of the Partnership.
The
Syndicator w i l l be r w n s i b l e f o r the reporting regulations of the

Interm1 Revewe Service f o r
both Investors and the G.P.
The
Syndicator w i l l a l m be responsible f o r U7e distribution of p
both &ring operation and upon sale w r e f i ~ n c i n gof the project.
Partnership
Private
is a c k s c r ~ p t i o nof the s t r u c t u r e of t k p a r t n e r s h i p .
follcwing
The
will
be
Pla-nt
r e g i s t e r e d by t k Securities and Exckr@ Carmisrion a s a
-lation
D, Rule 144 Offering.
T h i s w i l l l i m i t t h e rxlrrber
of u m c c r e d i t e d i n v e s t o r s t o 35.
Bennet Williams Inc. - General P a r t n e r
. .
T k
Eqity:
20% of P a r t n e r s h i p sale d i s t r i b u t i o n s
Incane:
15%of Net c a s h f l o w d i s t r i b u t i o n s
Souroe C a p i w - Marketing F e e s
Eqity:
5% of P a r t n e r s h i p =le proceeds.
Incane:
@ of N e t c a s h flow d i s t r i b u t i o n s
Eqlity:
75%
I m :
85%
Load :
ES% of c a s h goes i n t o actual development
of Net P r c c e d s
(gipl-hlwill receive ~ r o x i m t e l y 8% of the capital raie&
in
the necessary services associated with the project.
This
order to perform
imludes all legal, accrxlnting and marketing fees needed.
Bennett-Williams will receive a 3%G.P. developnent fee for pltting the project
together (building design, construction %pervision
The
.
Broker/Dealer
(if
...etc.).
needed) will receive a 1% syndication fee for
registration
partnership.
and
preparation of financial disclosure
This means approximately a8% of
j' iltilding
the capital raised will go into the actual
and grand. This ircludes all 1-1,
of the partmrship.
documents for the
aoaunting, printing, marketing,
With this ratio, the program will be among the most
marketable anywhere in the country.
FiMnCial
Center
has
LTD. w i l l a t t e c r p t to &welop a F i M I X i a l Service
M a ~ m n t . Grcup,
to
similar
the L a n c a s t e r Office i n t h e b u i l d i n g b e i n g vndicated.
MG
d e v e l q x d a F u l l Service F i m w i a l C e n t e r t h a t p r o v i d e s a l l of the r e l a t i v e
services
re=essary to
and institutions.
mamge t h e f i ~ n c i a affairs
l
of i n d i v i d a l s , b u s i n e s s e s
The Center w i l l i n c l u d e the f o l l o w i n g services:
1. F i r e n c i a 1 Planning
Finamial
the
2.
Investment and P o r t f o l i o Management
3.
k c c u n t i n g and Tax P r e p a r a t i o n
4.
Real E s t a t e Services
5.
Legal Servioes
6.
I ~ r a r c Services
e
7.
Managewnt
Lamaster
role i n
the
that
been
pt
w i l l s t r u c t u r e the C e n t e r similar to that of
LTD
with
the
e x c e p t i o n that Bennett Williams w i l l have a
f o r m a t i o n and the o p e r a t i o n s o f the Center.
and
structured
~ and nMortgage
t
Banking
Group,
location
recruiting
Pave
managerent
dweloped
of
and
the
-ration
used
in
Ft% w i l l p r o v i d e the
and w i l l u s e t h e w r r e n t s y s m
Lancaster.
The
ownership w i l l be
m n g MG, B e n n e t t W i l l i a m , and the other Major P l a y e r s who wish to
involved.
i n more detail.
Enclw_sd is a n o r i g i ~ Busil
P l a n t h a t o u t l i n e s tk c o n c e p t
following
The
of
Firms have exprezsed very s t r o n g and f a v o r a b l e i n d i c a t i o n s
i n t e r e s t to s i g n lorg term 1-
this
will
the
be
premier
office
agreements f o r -ace.
q ~ c elocated
P l e a s e be aware t h a t
i n Downtown York, and mt
irrportantly w i l l be the Only O f f i c e S>acz with on site parking.

will
be
rented
for
$30.00
Parking spa-
p e r month, and t h i s is t h e f a i r market v a l u e , n o t
c o n s i d e r i n 3 the convienewe.
Bennet
Williams
agreemenb.
and
will
occupy
25%
of
the
a t market v a l u e lease
Bennet W i l l i a m s is t h e l a r g s t Real E s t a t e Firm i n the York area,
is one of the L a r i Q t i n C e n t r a l Pennsylvania.
and can be reached a t (717) 843-5551.
Cum-ican Erpress
York Bank
7 . W Sq. F t .
10,000
"
FIcrxrunting Firm
5,000
"
wraisal Firm
1,1333
"
Bennet ~ i l l i a m s
8,000
Total
space
3 1 , 5 0 Square F e e t
'
Dave %had is the P r e s i d e n t
WSH FLOW
WRD COSTS
WISITImi
CCNSTRUCTIa'l
4% CONTINGENCY FEE
$1.960,00CI.O(i
31,000 32. FT. @ $10.00

9,033 SQ. FT. @ $6.00
108 PARKIW SPACES e m/m.
$310,000
TClrPL INCOME
$402,800
$54,003
$38,800
SOFT COSTS
DES1Q.I
FuWISHINGlj
F I W I f f i FEES
TOTAL COSTS
$ 1 ~ , 0 ~ k l . ~
$m,oi3o.ix
$ZB,KKl.Oi,
$Z,~~R,GXJ.IX)
C ; W ON CAW RETURN
15
....
"
"
minimam-rccurlly
nrlran filr
Dorrlns along s ~ o . n l sin bilhr
tnuncv in a Kav? nll8clal vlhu
~ ~ r o m , s eLO
d sterr cnntrnrtr to
chemcon.
For the Wcdlccll ~ h i l r ~ in
c
w h ~ he
h was the mtdlt~eman'ror
a 8115.WO bnbe. Jacobson reCeIved a three-year nvrpendcd
sentenceandpmbat~an.
Leisure ordrred lacubson la
turn hlmwlfino"lunc2iUUstt",
Lhaprioon k r m .
Jacobam. 47,- a thebrotherin~
.....................
,,,,,,,,
:<r,~
ir .
,illling
to the jtldvo by Edward .I.
~ , B , , >t ~~~ e , , , , , e ~ , t , ~ , ,,', ~ ~ t , ~ ~ ~ , ~ , l ,f~th~,r, ~,1, ~.~m~, ,cn,abcs tr~,r Taunts
t h c f ~ ~ m e r s u'"c1'e"'~c""""d"'hL'rn"4""k'"~
w r v ~ sl l ~r rirarllcipalrtl
~f
1urCI.b
in thr
D f l i c ~an1 brlllr ,rhumc.scrurdlng,ocuur,
.......................
,
, ,
i~cfr.i,.j
11111
$01-c ~ ~ C ~ ~ I I lilx
S V
rlifttmh. lie
foccii ilrc
sr;,rr
,,r,n,,
a
82i0,no"ri.~.
, ,I
rjlil.,iry
,I
tu
<\,,,,,$
.II,.,l,
j.l,ilC
ild'Ls
5%-11,
CBrl L J D C O b I o
0970s DhYIO)
,,
uuur, dor,,,,,cn,p
i)r,'ll,nl8on and 1'rrolc"s intcnsivr ,~,,r,~nlcr,t,.
to rccovri
$0" rrrrlrcd :xlx~wt I I
\v~,.~,
~n,bl.'ll"n rnunifllns ~ m ~ r r maneiourd
m
hlmbY H
~
ca*h
~
ilnd ~chctki ~l r o , , ~
son wrs ln i.nllr rb,cn(l,rgo,rm.
f"'lulcnll*s.
aflicmlr frnlli ji,,i loI:,
The
i
l
l
y
m
r
n
f
s
I
m
m
llnlted
he~u,n,dou,r,,l
tn
,n,r
frmxn ~ I ~ O ~ ~ . ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ C X ~ I rncllt
I I I I I I I \\,as
I I S trY,'a
to berue 11im
r Ills
o
a n .whu has
r efsmtiy
n
11\,1ng Chrm.an
Rsmircl tuut ,,lace
I ~ I I ~ c ~ ~ ~ ~ ~ c c I I ~ * ~~ l~i l ~
: l ~Cr i~l ~~d .i iIl l~~ ~
I iCl hOp ~~c ~~ iIw
. .I~
~s~l h
~b r brother
nn ~
the
Jauobrun IS ,,nr or I
19*,
arrord,,,g
u~sligallo!mb. as well i s lhr earThc fnn:mmrnt lovnd aul he i;wm in C h e s l ~ r N.J
.
, has k n
reconlr,rlthetrmeChcm.
c h u g c d ~ n i h riim,ill,
i u n l inverlirdllun into Cllfnn m r i n c h d r and rr8iI lllr rubgl8c- rollnsellltc youths at a p m g ~ a m ,c
,
vying to get a cnn,racl
Can lraud m d hr\k,r?
and lnlcrnati<,#talSlsnal L Con- #i:l LC, ihc l i S c m b r s a ~tllcrc. managed bv Hafner and helpine worfh *but
1ncIud1ns lormrr C ,
troi timup
mllliun
J~aroliisnu'ar s r r i c d wilh the out at a YMC.4 program in YorN~,,~..~~~~~~,,~..
"lbc rllnllgcll 1xHn1 in h l i s u i l y l l m a n l l a r iorlrle h i s ilsCosnty.N.J.
p
r c siI
d hrvcpirudud
e n l J r m r r H Chr
far.
gui
Jaeohran'slaror is chat l m n i (he Dasswrt m d irylng to gut a ,sew
Goidberg called Jecobsm a
b LheUredtcrh scheme. ~ s m b hauek~nrenfeneed.
.Inmbn,n, h # w e v e r ,won f.tvnr
,,cc,,rd,nE
cl,,,~
FBI accl
.......-
""...*.
The FBI agent said he i n t e r

viewed numemvr 1SCerocut:rea
who told h ~ m
ol mnversationr h?
which Clark rhowcd full koowld y e of the company's allegedly
illepalactivilies.
The agent raid. 10. instance,
that James Deirrh, a former ISC
financial off~cinl,b d recalled a
Fpnve"aariominwhichc~arksaid
Those (ISC1 people have &
worry. thole pemple are oing to
,*(I,
lames G U ~ C , "
knw
what i t leelsUketoberaped."
Aecordirll to ~ e i t r e h .c l a n
also referred to other ISC olllciald Joseph H. Zilligen. R.Clyde
Ivy. andTerry Faulds an"criminals and r m a W in nvmemur
ennvcmation.theFBIaeentraid.
Thomas Mills, another ISC
linrnelal official. told the F B I
agent !hat in 1988 he observed
Clark spending "an unusual
number of hours a, the phatoc*
w i n g machine."
including
nigh* and weekends. O'CdIaChansaid.
Mills told the sgcm that when
sumrone elre cntered the photocopy mom. Clark memed "very
dratvrbcd and agitated" s t not
wifl
be~nealonc.!heagcnfcontinued.
The rgenl srld Michael D.
Spangler, m ISC public relstiona
manager, mrlld c i a r k saying
that if ISC'5 mergcr partner in
Enyland ,'*new the true finan"La1 picture of ISC. they'd all bc
I","#I
"
Gucrln has malnlained br

mOOtha that Clark lorced h i m to
sign the severance pay deal with
thceats Of C X W S U R concerning
a b e d wrongdo"
by IS$.$%
PlOYep9. ' ~t B p r d l m i n ~ r yh?aring+acre
nn i s " o c , , r r , n <a,,, hiF I.*.,.
,,,
I Christian angered I

A2"
M.urr*t*rr.a*
717-5694100 ~ 5 2 1 - 8 5 6 7 SOO-322-1118 (PA only)
lro
MICHAEL M. HARTLETT, CFP

Oblenders
37 South @leenStreet
-,
PA 17603
Dear Sir:
a t Financial Management Group Ltd. (Fm; Ltd.) want to inform you that
Stanley J. Caterbone is no longer an officer of our corpration.
We
He w a s was63 as Fxecutive V i c e Fresident on July 1, 1987. W e have been

informed that Mr. Qterbne has keen plrchasitq items under FM; Ltd's name and
obtaining cur Brporate discount and rates.
lhis letter senres notice that Stanley J. Caterbone nwer has had the right to:
1) Furdnse i t e n s for or thraqh FIG.
2 ) Make C o m b ammlim behalf of FM;.
3) Contract for or in any way obligate Fm; W.
and that we are laat ?xspmsible for any debts, liabilities or obligations which
may arise f m or thmugh him.
If you have any questions, please call Michael Iiartlett or Rcbert Kauffman a t
717-569-5555.
?hank you for your w
r
t of
Ltd.
prosperous kusiness relationship w i t h yau.
We
look
kchael M. Iiartlett, CFP

Executive V i c e President
omnd chmqh mannofa i . N I * k s GIOUP Iffi
A R.p-
M r l D . . h
.rYrmb.r
SI K
M-b..
NASD
forward to a l q and
K L SHIRK.SR (1915-1956
A T T O R N E Y 5 AT L A W
PRINCIPAL OFFICE
P 0 B O X 1552
132 E. CHESWUT STREET
LANCASTER,
WILLIAM J PELHAN
BARBARA RElST DILLON
PENNSYLVANIA17603-1552
AREA CODE 717

LANCASTER-394-7247
AKRON.859-I742
August 5 , 1987
IN REPLY REFER TO:
C0127 WOlDV CAT
554 B e r k l e y Road
S t o n e Harbor N J 08247
Mr.
Dear S t a n :
I was v e r y s o r r y t o h e a r of your m i s f o r t u n e when w e spoke
today.
C e r t a i n l y , you a r e w i s e t o o b t a i n c o m p e t e n t , r e l i a b l e l e g a l
c o u n s e l who w i l l g u i d e you w e l l , n o t o n l y l e g a l l y , b u t e t h i c a l l y .
I a m e n c l o s i n g , i n a c c o r d a n c e w i t h your r e q u e s t , a p a c k e t
(of A l l - S t a t e L e g a l Supply Co.) which c o n t a i n s t h e V o l u n t a r y P e t i t i o n i n Bankruptcy ( C h a p t e r 7 ) and a l l accompanying forms which are
n e c e s s a r y t o p r o c e s s s u c h a n i n d i v i d u a l , bankruptcy.
T h i s p a c k e t i s complete i n terms o f what you need t o process a b a n k r u p t c y t h r o u g h o u r f e d e r a l c o u r t system.

W e , i n c l u d i n g S t e p h e n R . G i b b l e and m y s e l f , a r e g i v i n g no
a d v i c e t o you i n t h e c o u r s e of s e n d i n g vou t h i s m a t e r i a l .
It is
our basic, very s t r i c t policy i n t h i s o f f i c e , t o n o t give l e g a l
a d v i c e t o any c l i e n t , new o r f a m i l i a r , u n l e s s we are f u l l y informed.
o f and f a m i l i a r w i t h t h e p r e c i s e , d e t a i l e d f a c t s o f t h e case, upon
which we c a n b a s e a competent o p i n i o n .
You had mentioned t o m e and t o Stephen G i b b l e t h a t you

wanted t o c a l l S t e p h e n G i b b l e from t i m e t o t i m e t o a s k him l e g a l
I do not
q u e s t i o n s and s o l i c i t l e g a l a d v i c e a s you f e l t n e c e s s a r y .
t h i n k t h a t t h i s i s a w i s e way f o r you t o h a n d l e t h e s i t u a t i o n , S t a n .
P l e a s e f o r g i v e m e f o r g i v i n g you p r a c t i c a l , n o n - l e g a l a d v i c e , when
you have n o t a s k e d f o r i t . However, I a d v i s e you as a f r i e n d t h a t
it i s b e t t e r t h a t you s e e k t h e o p i n i o n o f C a l i f o r n i a a t t o r n e y s , when
you a r r i v e t h e r e , a s t o p r o c e s s i n g t h e bankruptcy p e t i t i o n , o r s i m p l y
as t o q u e s t i o n s you m i g h t have from t i m e t o t i m e . Given t h a t t h e y
w i l l a l s o know your e n t i r e s i t u a t i o n , b e c a u s e of t h e l i t i g a t i o n t h e y
may b e h a n d l i n g f o r you, t h e r e w i l l b e no i s s u e s t h a t a r e o v e r l o o k e d .
OTHER OFFICES
EPHRATA. PENNSYLVANIA 17522-2014
717-733-2588
717-626-2404
402 SOUTHBROAD STREET

LITITZ. PENNSYLVANIA 1 7 5 4 3 . 2 6 0 2
717-626-2775
250 MAPLE AVENUE

WARRWILLE, PENNSYLVANIA 17566-132C
717-786-1123
.?
3 1

August 5, 1987
Page Two
,
'
It would be extremely dangerous for us, and unfair to you!, ,d

to advise you in this situation when we do not have the information
that is necessary. I feel that it would be very hard for you to communicate all of that over the phone to Stephen Gibble.
I:
I do not mean to imply that we are not happy to send you

these forms out of courtesy to you for the many kindnesses and courtesies which you have extended to us in the past. We very much
appreciate that courtesy and kindness and want to reciprocate. But
we do not want to create an unwise attorney/client relationship.
Again, it is very distressing to hear of your misfortune,

and I sincerely hope that you are able to resolve these problems in
the future, and that, with patience and support, you will be able to
rebuild and succeed.
With every best wish, I am
Sincerely,
SHIRK, REIST, WAGENSELLER AND SHIRK
By:
FAX: 0 1 1 8 1 ~ 5 5 0
B i l l T e l l , President PD2 I-tries

Oshaka, Japan
Dear B i l l :
If you no of anyover there that would l i k e a great i n v e s t m n t i n
real estate, I am i n desperate need of fur& for a Prime p i e c e of Real Estate
i n the Heart of I - b l l ~ The
.
-r
of Gomillion Studios, of which I am
Executive V i c e P r e s i b n t . The Film and Sound Studio is doing f i n e , kaever he
was i n the middle of r a i s i n g 6 m i l l i o n dollars by way of a Bond Offering,
ha*rever
the I-bent
Firm was caught i n a Scardal, which sears l i k e a n
everyday occurram. H e rmst declare p e r m 1 Barcruptcy by -st
6 t h unless
he can f i n d $200,000. He owns the R e a l Estate p e r s o ~ l l yand r e n t s it to the
Film Studio. The R e a l Estate ard all E ~ i p n e n tis worth o v e r 6.6 m i l l i o n
Dollars. He was paying $300.aX)per year i n Rent. I c a n worU a very
attractive deal f o r Ior E ~ i t iyf i n t e r e s t e d . Enclosed are sune piof i n f o m t i o n .
Thanks f o r ycur a x s i d e r a t i o n .
I
If you can gst me a n R-Dat for the S t u d i o , please also g t me a box of 90

miruete blanck tapes, the b e s t q m l i t y available.
cc: T. G a n i l l i o n
Commonwealt
National Bank
A Mellon ~ a n k ~ ' " ~ " ~ ' ~
August 7, 1987
Mr. S t a n l e y C a t e r b o n e
554 B e r k e l e y Road
S t o n e H a r b o r , N.J. 08247
Dear Mr. C a t e r b o n e :
M r . S i e g e l h a s r e v i e w e d w i t h me t h e s u b s t a n c e o f h i s t e l e p h o n e c o n v e r s a t i o n
w i t h you oii August 5 , i927, and has askei me Zo r e s p o n d t o you d i r e c t l y .
A s a r e s u l t o f t h e c o n c e r n s which you e x p r e s s e d , w e have a g a i n r e v i e w e d
t h e f a c t u a l background o f t h e s i t u a t i o n which r e s u l t e d i n t h e bank
r e p o s s e s s i n g your a i r p l a n e on J u l y 2 , 1987. You are a d v i s e d t h a t , g i v e n
t h e c i r c u m s t a n c e s , w e are s a t i s f i e d t h a t t h e r e p o s s e s s i o n was b o t h l a w f u l
and a p p r o p r i a t e . T h e r e f o r e , we are n o t i n c l i n e d t o a c c e p t y o u r s e t t l e m e n t
demand o f $5 m i l l i o n which you communicated t o Mr. S i e g e l .
Should e i t h e r you o r your a t t o r n e y wish t o d i s c u s s t h i s matter f u r t h e r ,

f e e l f r e e t o , c a l l e i t h e r myself a t (717)295-3362, o r a t t o r n e y J a c k 3
' . Ream,
who i s r e s p r e s e n t i n g t h e bank i n t h i s matter. He c a n b e r e a c h e d a t (717)
I m i g h t remind you t h a t t h e bank i s i n t h e p r o c e s s o f s e l l i n g
843-8968.
t h e a i r c r a f t . However, s h o u l d you be i n t e r e s t e d i n redeeming t h e a i r c r a f t
p r i o r t o t h e time t h e bank e n t e r s i n t o a n a g r e e m e n t t o s e l l i t , or i f you
d e s i r e t o r e f e r a p o t e n t i a l buyer t o t h e bank as you h a v e i n d i c a t e d i n
c o n v e r s a t i o n s w i t h bank p e r s o n n e l , p l e a s e c o n t a c t e i t h e r M r . Ream o r m e
a t t h e numbers p r e v i o u s l y m e n t i o n e d , i m m e d i a t e l y .
Vice P r e s i d e n t
cc:
J a c k F. Ream, Esq.
I r w i n H. S i e g e l
The Commonwealth National Bank, 28 Venn square; Lancarter. Pa. 17603
1717) 393-5601
MINNESOTA MULTIPHASIC PERSONALITY INVENTOR'

S.R. Hathaway and J.C. McKinley
GROUP FORM TEST BOOKLET

& L q J .
-=-
J / / ,7
Published by: The University of Minnesota Press

Distributed by: National Computer Systems, Inc.
P.O.Box 1416
Minneapolis, Minnesota 55440
0
MINNESOTA MULTIPHASIC PERSONALITY INVENTORY

CoovriahP
,. THE UNIVERSITY OF MINNESOTA
1943. Renewed 1970. This Test Booklet 1982 All tights resewed.
Disbibuted Exclusivelv by NATIONAL COMPUTER SYSTEMS. INC.
Under ljcen& horn m e University of Minnesota
*'Minnesota Multi~hasicPersonalty Inventow" and "MMPI"
are lradernalks-ownedby The university Minnesota
.,
The invento~ycantained in this booklet has been designed for use with the Group Form answer sheets
distributed and authorized by National Computer Systems If other answer forms are used. National Computer
Systems takes no responsibility for the meaningfulness of scores
0
I
Printed in the United States at America
DO NOT MAKE ANY MARKS O N THIS BOOKLET.
1. I like mechanics magazines.
2. 1 have a good appetite.
'i)
4 4
3. 1 wake up fresh and rested most mornings.
4. I think I would like the work of a libra5ian.

.5. 1 am easily awakened by noise.
22. At times I have fits of laughing and crying

that I cannot control.
23. 1 am troubled by attacks of nausea and

vomiting.
24. No one seeks to understand me.<
C,
/'
6. 1 like to read newspaper articles on crime. \
/-
25. 1 would like to be a singer.
26. 1 feel that it is certainly best to keep my

mouth shut when I'm in trouble.
7. My handsand feet are usually warmenough.
27. Evil spirits possess me at times.

8. My dail; life is full of things that keep me
interested.
- \
/j/
28. When someone does me a Wrong I feel I

should pay him back if I can:just for the
principle of the thing.
9. 1 am about as able to work as I ever was.

10. There seems to bea lump in my throat much
6
of the time.
I
11. Apersonshould try to unqerstand hisdreams
and beguided by or take yarning from them.
12. 1 enjoy detective or mystery stories.
13. 1 work under a great deal of tension.
3
.
)(
e .
15. Once in a while I think of things too bad to

talk about. /j
16. 1 am sure I get a raw deal from life.
17. My father was a good man.
fi
\
peculiar and strange experiences.

34. 1 have a cough most of the time.
35. If people had not had it in for me I would

have been much more successful.
36. 1 seldom worry about my health.
/C
/
\
19. When I take a new job. I like to be tipp doff

on who should be gotten next to.
/
\
18. 1 am very seldom troubled by constipation.
20. My sex life is satisfactory.
31, 1 have nightmares every few nights.
32. 1 find it hard to keep my mind on atask orjob.
14. 1 have diarrhea once a month or more.
29. 1 am bothered by acid stomach several tin&

a week.
/
30. At times 1 feel like swearing. [
&
21. At times I have very much wanted to leave

home.
37. 1 have never been in trouble because of my

sex behavior. (
'
38. During one period when I was a youngster

I engaged in petty thievery.
39. At times I feel like smashing things.
40. Most any time I would rather sit a d dayaream than t o do anything else.
Go on to next page
41. 1 have had periods of days:~eeks, or months

when I couldn't take care fthings because I
60. 1 do not read every ditorial in the newspaper every d a d
couldn't "get go
nig
..
61. 1 have not lived the right kind of life.
42. My family does not like the work I have

chosen (or the
intend to choose for
my life work).
.-
43. My sleep is fitful and disturbed.
time my head seems to hurt all

over.
45. 1 do not always tell the truth.
46. My judgment is better than it ever was.
.c
&w
63. 1 have had n o d i f f i c u l t ~ n or

g holding
my bowel movement.
64. 1 sometimes keep on at a

lose their patience with me.
65. 1 loved my father.7
47. Once a week or oftener I feel sudd nly hot

all over. without apparent cause.
66. 1 see things or animals or p F l e aro'und#f:

glSt
that others do not see.
48. When I am with people I a

hearing very queer things.
67. 1 wish Ico Id be as happy as oth&

be.
all laws were
50. My soul sometimes leaves my body.

health as most
51. 1 am in just as
(
,. ~ .
of my friends.
49. It would be
thrown away.
c?
62. Parts of my body often have feelings like

burning, tingling, crawling, or like "going to
sleep."
7
0G
m I f 6f i
L Ce
W
seem to
/C
68. 1 hardly ever feel pain in the back of the neck.
69. 1 am very strong1

myown sex.
ttracted by members of
1.7
-
70. 1 used to lik2>rop-the-handkerchief.
71. 1think agreat many people exaggeratetheir

52. 1 prefer to pass by school friends. or people Iknow but .have not seen for a - ng time.
unless they speak to me first.
i'
misfortunes i n order to gain the sympathy

and help of others
72. 1 am troubled by discomfort in the pit of my
stomach every few days or oftener. F
53. A minister can cure disease by
k-
putting his hand on your head.

73. 1 am an important person.
54. 1 am liked by most people who know me<l

55. 1 am almost never bothered
the heart or in my chest.
palns over
p
'
\
56. Asa youngster I was suspended from school

one or more times for cutting up. /
/
57. 1 am a good mixer./\
75. 1 get angry sometimes.
/
)
76. ~ o soft the time 1 feel blue.
77. 1 enjoy reading love stories.
58. Everything is turning outjust liketheprophets of the Bible said it would.
74. 1 have often wished I were a girl. (Or if you

are a girl) I have never been sorry that Iam a
girl.
59. ihave often had to take orders from someone

who did not know as much as I did. /
78. 1 like poetry.
79. My feelings are not easily hurt.

80. I sometimes tease animals.
f-
<
Go on to next page
//
81. 1 think I would likethe kind of worka forest

ranger does.
101. 1 believe women ought t p & v e as niuct

sexual freedom as men: f - ,
& 0,
82. 1 am easily downed in an argument.
102. My hardest battles are with myself.
83. Any man who is able and willing to work

hard has a good chance of succeeding.
103. 1 have little or no trouble with my muscle:

twitching or jumping.
84. Thesedays I find it hard not to give up hope

of amounting to something.
104. 1 don't seem to care what happens to me.
>,
..
.. >. .... .
..
hen I am not feeling well I an

85. Sometimes I am strongly attracted by the
personal articles of others such as shoes.
gloves, etc.. so that I want to handleorstea
them though I have no use for them.
106. Much of the time I feel as

something wrong or evil.
86. 1 am certainly lacking in self-confidence.
107. 1 am happy most of the time.
87. 1 would like to be a florist.
108. There seems to be a fullness ' my head o

nose most of the time.
(I;
cross.
yI d 9
/
\
88. 1 usually feel that life is worth while.
89. It takes a lot of argume o convince most

people of the truth.
I
109. Some people are so bossy that I feel like

doing the opposite of what they request
even though I know they are right. /Z
a
90. Once in a while I put off u

what I ought to do today.
tomorrow
111. 1 have never done anything dangerous f o ~

the thrill of it.
91. 1 do not m ~ n dbeing made fun of<
2 . I would like to be a n u s
110. Someone has it in for me.
112. 1 frequently find it necessarytostand u p f o ~

what-l think is right.<
93. I think most people would lie'to get aheaclf

113. 1 believe i n law e n f o r c e m e n t . 7
94. 1 do many things which I regret afterwards

(I regret things more
more often than
others seem to).
/
95. 1 go to church almost every wee/\
96. 1 have very
my family.
arrels with members of
97. At times I have a strong urg

thing harmful or shocking.
,.
0
..
. ....
:i
*-
do some-
98. 1 believe in the second coming of Christ. 1

99. 1 like to go to parties and
where there is lots of loud fun.
100. 1 have met problems so full of possibilities
that I have been unable to make up my
mind about them.
.f,'
114. Often I feel as if the

about my head.
were a tight banc
>
115. 1 believe i n a life h e r e a f t e r : T
/P"
116. 1 enjoy a ra
on it.
-r'
or game better when I be
117. Most people are honest chie

fear of being caught.
118. I n school I was sometime
principal for cutting up.
sent to thc
119. My speech is thesame as always (not fastel

or slower, or slurring; no hoarseness). (
120. My table manners are not quite as good a'
home as when I am out in company.
Go on t o next pagl
201. 1 wish I were not so shy.
222. It is not hard for me to ask help from my

hough I cannot return the
202. 1 believe I am a condemned person.
P
: 7/h-wsor ,
:
Tifib
'i=
223. 1 very much like huntin
203. If I were a reporter I would very

to report news of the theater.
224. My parents have often objected to the kind

of people 1 went around with.
204. 1 would like to be a journalist.
225. 1 gossip a little at times.
205. At times it has been impossible for me t o

keep from ealing or shoplifting something.
226. Someof my family have hab~tsthat bother

and annoy me very much-
206. 1 am very religious (more than most people).<
227. 1 have been told that I walk during sleep.
7
like to flifl. f
207. 1 enjoy many

recreation.
1
2 0 I
ferent kinds of play and
-p
210. Everything tastes the same.

21 1. 1 can sleep during the day %not
at night.
229. 1 should like to belong to several clubs or

lodges.
/
?m
233. 1 have at times stood in the way of people

who were trying to do something, not
because it amounted to much but because
of the principle of the thing.
f=
216. There is very little love and companionship

in my family as compared to other homes.
P
P
235. 1 have been

from family rule.
e particularly to see
&I$
then get over it soon.

pendent and free
es are nearly all in sympathy with

237 me.
My
219. 1 think I would like the work of a b 11 in

contractor.
238. 1 have periods of such great restlessness

that I cannot sit long in a chair.
220. 1 loved my mother.
239. 1 have been disappointed in lov
221. 1 like science.
240. 1 never worry about my looks.
236. 1 brood a great deal.
T?P
234. 1 get mad easily
myself worrying about
218. It does not bother

animals suffer.
3.
232. 1 have been inspired to a program of life

based on dut- which I have since caref lly
f0llOWBdr(
3 6 >
&
B
214. 1 have never had any breaking out o n my

skin that has worried m e . 4
J
215. 1 have used alcohol excessively.
217. 1 frequently fin

something.
e more likgachild than a
Ci
230. 1 hardly ever notice my heart pounding and

I am seldomshort of breath<
231. I like to talk about sex.
213. I n walking L am very careful to-step over

sidewalk cracks.
t
228. At times I feel that I can make up my mind

with unusually great e a s e / r
209. 1 believe my sins are unpardonable.
212. My people tre

grown-up.
IAJ (
F=
<
F-
Go on to next page
441. 1 like tall women.
459. 1 have one or more bad habits which areso
strong that it is no use in fighting against

them.
'42. 1 have had peri ds in which I lost sleepover
worry.
460. 1 have used alcohol moderately (or not a
443. 1 am aDt to Dass uo somethina I want to do
because oihers feel that I

about it in the right way.
444. 1 do not try to correct
not going
ple who express

462. 1 have had
my urine.
445. 1 wasfondof exciteme

(or in childhood).
hen I was young
7"
I
starting or holding
463. 1 used to like hopscotch.
447. 1 am often inclined to g o out of my way to
465. 1 have several times had a hange of heart
about my life work<

466. Except by a doctor's orders I never take
drugs or sleeping powder<
448. 1 am bothered by people outside. o n
-i
portant (such as automobile licenses, etc.).

468. 1 am often
good ideas, just

thought of them first
1
'p
452. 1 like to poke fun at people.
470. Sexual things disgust me.
453. When I was a child I didn't
471. In school my marks
member of a crowd or gang.
bad.
auite reaularlv
-
454. 1 could be happy living all alon
talk of the group I belong to.

474.
456. A person shouldn't be punished for break-
&
ing a law that he thinks is unreasonable.
[/
1 have to urinate no more often than ottiers. 4
475. When I am cornered I tell that portion
the truth which is not likely to hurt me.
uld never taste
476. 1 am a special agent of God.
458. The man who had most to do with me

when Iwas a child (such as my father, step-
(-
473. Whenever possible Iavoid being in acrowd.
455. 1 am quite often not in o n the
portment were
472. 1 am fascinated by fire.
in the woods or mountains.
an alcoholic drink.
I am so crossand
469. 1 have often found people jealous of my
451. My worries seem to

into a crowd of lively
457. 1 believe that a person
grouchy.
of a ciowd.l(
467. 1 often memorize numbers that are not im-
gatherings just to be with
464. 1 have never seen a vision.
cars. in stores, etc.. watching me.
446. 1 enjoy gambling for small stakes.
wina p c ~ s o m e o n who
e has opposed
me.
(-1
--
461. 1 find it hard to set aside a task that I have
undertaken, even for a short t
an ignorant belief.
all).
father, etc.) was very strict with me.
477. If I were in trouble with several friends who
were equally to blame. I would rather

the whole blame than to give them
Go on to next page
555. 1 sometimes
to pieces.
that I am about to go
562. The one to whom I was most attached and

whom I most admired as a child was a
woman. (Mother, sister, aunt, or other
556. I am very careful about my manner of d r e s s r

/>
"Oman.'
557. 1 would like to be a private secretary.
P
pried
558. A large number of peo

sexual conduct.
559. 1 have often been
of the night.
560. 1 am greatly both
put things.
T-ories betterthan romantic
stories.
are guilty of bad

564. 1 am apt to pass up something I want to do
when others feel that it isn't worth doing.
in the middle
565. 1 feel like
high place.
by forgetting where I
561. 1 very much like horseback riding.
566. 1 like movie love scenes.
/
1
when I am o n a
W*W,II
YIUS,*I*I
n Park II. 1 1 5 9 O r w o n PI*.

U n c a e r , PA 1Ywr
1694100 1 0 0 - S l $ J S L 7
U 1 D i n - i I 2 4 [PA o n w
ROBERT E. KAUFFMAN
PRESIDENT
Mr. stanley C
554 BerEley
Stone
mad
New Jersey 08247
Dear Mr. CaWe,
the Board of D i r e s t o m , are in ramipt of y~

rn back to the oorpcaation.
note offer-
to sell shares or
A l l u i me to first a&9ress the easy points of your pro-1:

1. William Um&x does mt, at this
-,
never cuqmw~teany ex-staff
desire to cash out h i s
2.
We w i l l
3.
We w i l l not give you 0% share of Trl: stmk for nostalgic

reasons as we dd rat want any dissident stcckholders in our
Alture. Flhen we buy s M c , it will be the entire ammt.
4.
m
y
, you feel strongly abcut yrur debt to B i l l Johnson
a d want it to be paid. So do we. You also have several
other d t o r s who we wculd like to see paid. To be sure
that they are paFd, we will dsdud their paynent f m m any
pmcsds.
A t t a w you will f i r d a l i s t t h a t w e n a ~ h o u
psaple for any reason.
abart.
As for the price of the &xk, we are willing to pay $2.50 per
share for 40,000 shares and $5.00 per share for y a r 400 shares or
$102,000 less debts* lhat is what we are w i l l *
to pay this W!
I~ the future,
will mibe the price by:
1.
m
' e build up of any debt,
2.
'me continued d e f m t i o n of our corporate nan!e will reduce
costs, interests and penalties
its value
3.
Dur time
ask in c l e a l i q with either -pr
penaingbjnlauptcy
your
Please Sr aa~ised.+
&
t
tm this p i n t we have tried to urderstand
cirumstances, W i v e s an3 corditions to your actions.
In Lne
flhlre, we w i l l not be unjersming.
prepsred to pursue
We
enkezzlemnt
(we
crimiral
for
attempted
have che~=& to prwc it), bLPglJTY.
,theft
'
z z l ~ d'~&Yye
~ i t ~ j ~ ~a~
J qige~ ~
s x 1 s oterm,
n
E!e aadvised that Ure
sli&test p r u v m t i o n of m l r m q n r a t l n n will result in tho filinj of
the &bVe mfs,
'&e filiny o f Chargffi ha^ rmthirq tn dn with this
negotiation.
It has to do with amtinued kritten ard v-1
assault lfeon cur ffm.
w a n t l y ,
any a l e of sta2k will also n q u k e an agreanent

kMch settles any
all
not to &fans= cur firm and a covenant

claims aguinst the corporation.
Stan,
our skirrurte is that toclay you would raceive ahout
$55,000
for ycur s M c
a1 1 cmlitors are paid. You, or course, have the
option to hold your stock hlefinitely, offer it to us at a later
time or
R 131tlmrepmsentative offer it ta us. It is up to
YOU
have
rn
best offer.
ym.
me Board of
DinXtom
Fincuwial Mwagemcnt &cup, I A A .
ROBERT
E. KAUFFMAN
PRESIDENT
M r . Stanley J. Qterimne
554 *?Hey RCx5.1
Stone Harbor, New Jersey 08247
Dear Stan:
We have been advised by our legal counsel not to personally

any matters m q a r d h g your past affiliation and stock
prqcsal with our firm.
dxxms
Henceforth, s h a d ycu desire t o d h m s any ma-,

please have
your awrneys contact cur attorneys R u s s e l l Krafft G n b e r & H u b e r at
(717) 569-5383, as we will rm l q e r deal with you on any matters at
any time.
R.E.
Kauffman
Sccvrltln Offered through ~1anncr.sSecurltln Group i n r

A Regln~ed
BmkerlDealer
Member SlPC
Membcr NASD
Specialists in Radio Communications

309 East White Horse Pike Absecon, N.J. 08201
< -
.\ , .1 - -
c,,sroMEn
::.;..:
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(609) 652-5888
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Angina
0 Psychiatric lll?err
0 Allergy.
2 Perm. Pacemaker
0 CHF
0 Diabetes
0 Hypertension
Ei E P ~ ~ ~ P S V
M.I.
Othet Heart Cond8cion
0 Pulma>ary Condation
J
Medical
0Trauma
0 Psycho Service
Notilacd
CVA
rJ
Chronic Lung Osrorder
Notification
01:
Orher
'.:z#ent'$Phyr8cia11.
----
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TIME
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TEMP.,
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TREATMENT I N PROGRESS O N ARF

CPR
C] Mart Trouser
REASON FOR ER VISIT Weight
PAST HISTORY
L/ 1i 4.4j$-
- - $/P
-.
Airway: Oral: InNbatedSize:
Visual Accuity
0s
Rcr~rmdcd
0I V
0 Monitor
OD
Family
Police
0
O
Social Service
Clergy
0S
A""eb
nMental Health
-
Orugr
Backboard
Phila. Collar
~ ~ ~ ~ l s
Prerrure Orerring
OBJECTIVE
ASSESSMENT
I NURSING DIAGNOSIS
/'&- li q
I'
SPECIAL PROCEDURES
0Ace Applied
C3 u?.
0 Lab Stix
0 Irrigations
0 Ice Applied
0Dressing Applied
Cervical Collar
L A B WORK
0 Urine
Bld
Hct
Hgb-
-K e t
rot
Ph
0Cap GI"
OCul~re
DISCHARGE PLANNING
0Smial Service
0Cart Care
0 Wound Care
0 Head Trauma
nER Inrt.
CHA7T
X43AYS
. . .1 S : . i : c s Exmination (Circle or enter appropriate r e s p n s e s )

..., ..
1. ;:-zc:rmce
a.
and Behavior
Thin, (herweight,
Pnysical Characteristics:
2
Looks older, Looks younger, Effeminate, I.

Ill a t ease, Healthy, Sickly,
I
Other:
Dress/Graxing:
b.
ticulous, Disheveled,
Ina$propriate/bizarrz.
Other:
c.
b a t o r Activity:
Dystonic, Graceful, Clumsy,
Tics, R q e t i t i v e m v m t s , Posturing, Facial grimaces, Trcmrs,

Rigid, Relaxed, R e t a d & , m a t i v e .
L*,
Other :
Facies:
d.
Facial Eqression:
Other:
e
Futed, Blank
.:
I
2
Contact:
0
Mobile
@,Avoided.
SiarUg.
Other:
c. A t t i t u d e ! b w a d Examiner:
Cooperative,
Playful,
Other:
2.
Affect/bW
a.
Affect (outwad n-anifestation of r r d ) :

Incongruent, Full range, Constricted
changes) Flat.
!.hod (a p r v a s i v e and sustained internal f e e l i n g s t a t e / e m t i o n ) :
b. Lkpresscd, @Anxious,
% &a
~ u s ~ i c i c kaiiltY1shdnefu1,
s,
~ c r :
IP.
mphoric, Elevated &thymic ("n&nral)

./
~ ; ~ s a i rw
r dh ~ ~ ( 5t~ ~s: : : : .
O;l~ei-:
b.
Tn,ic$t.
Process:
Ov?r&straction,
Dtclusively ~a::'.:
(:.Y : :
(unrclatecl thouqhts), f l i g h t n i iC:.;.2:
s&-related
ideas)
:: : :
~ -i.,
t
, Calf abulat ic::,
T
3
:
=
&
otiix :
2.
dZt+
'Iii~GJlltCO!~~~II'C:
::.. :,
C.
1r:~xircclrc.?lity t e s t i n g , Persevcratio::
hx F-I'?(~.-.
i A *a%
' In&
iC
1
'
(kehaviors) , Phobias, Row.
l, I- ,.;
: .
ft ~
LLG;
Ot!lcr :
2.
1. l ' r ~ m ~ p t i o n(specify
s
content) : O
Cs:r;;ulsions
., ,.
- .
:.
rl
-.
A.:.:
f <c
:'=
~
;
Thought bro.:c?c:.:- t ::. : ,
Samt i c ,
3.
n.:-, :i:
:;
r?rcc$ion:
2.
I%illucinstions (describe and specify contcntl:
V:
.. :
Auditory, Olfactory, Custdtory, Tactile@
kw4.
h r k d LU.*
r.:
2?*,k
vJ-
Czlusions (specify content) : Extern1 co:;t :.?:,
~4
~
crl.
4.
Scnsorim:
,.
a.
Orientation:
Orientcd to:
perform 7's, 3's.

Ot!!?r:
c.
I.'m-oqf: recent:
In-paired,
Pamte:
Inpaked,
i+!,,,i of I(nok:lcd-je: F z l w averag?, Averag
c.
e.
--
OLhzr:
~fcllig~?:
rcc
& l o t average, i
age,
./
Othcr:
f . J u 2 q ~ ~ x t?ppropriate,
:
O t i k r:
5.
Insicht:,
Ph?Li'i~i!llncss and attributes
ness
hiit
tp internal causation, Amnits ill-
.-
..
accepts no responsibility for participating in i t s
trmtwxt.
Other :
111.
Substance Abuse Ilistory:

a.
b.
Current drug/alcohol Use

.. .. ' - '
n
-~
Previous Drug/Alcohol Treatnent:
..- ..
..
--
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1:SIITAL HEALTH S E R V I C E S OF CAFE t<AY COUiITY I I!:.

PROGRESS NOTES
Clicnt ' s
--D 4 i C
.illERAP I ST
n /
/?
fl
Court told attorney Clark

z-/ to stop ISC 'crooks'
tried
7-90
.
,-
by Tim Mekeel
and Ernest Schreiber
hew Era Slafl Wr ters
had removed, theFBI agent said.

O'Callaghan's testimony came
in a federal court hearing over
the settlement of a severance
PHILADELPHIA - The for- deal for Clark.
mer top attorney a t International
Clark signed the deal with GueSignal & Control regularly did
the right thing when he encoun- rin and his personal holding comtered wrongdoing inside the company, Parent Industries Inc.
pany, an FBI agent conceded Gcerin later established a $2 million escrow account to cover payhere Wednesday.
ment of the deal.
William A. Clark, formerly
But on March 28, the U.S. AtISC's vice president and general torney's Office won a federal
counsel, tried to steer ISC execu- court order freezing the account
tives away from illegal actions and blocking the payouttoClark.
and made "extra efforts" to asThe federal prosecutors arsist federal investigators, said gued that Guerin earned the
Special Agent Gerard O'Cal- money through racketeering and
laghan.
fraud, so the money was forfeitUnder cross-examination by able to the government.
Clark's lawyer, O'Callaghan conClark likewise was not entitled
firmed that Clark even hired an to it, since he knew that it was
outside law firm to advise ISC fi- earned by criminal schemes, and
nancial officers on how to re- he used that knowledge to extort
spond to questionable ISC con- the deal from Guerin, the protracts they had uncovered.
secutors said.
Clark went as far as to replace
In the two-day hearing, the
incriminating documents that U.S. Attorney's Office is seeking
ISC founder James H. Guerin to extend the freeze by 90 days.
Clark wants to liftthe freeze, and

get his $1.76 million share of the
escrow account.
Judge Thomas O'NeiU did not
indicate when his ruling will
come.
Wednesday Aorning ~ u n
O'Callaghan, in response to questions by Assistant U.S.Attornej
Robert E. Goldman. relatine nu
6
merous times when ~ l a r re
ferred to Guerin and his col
leagues a s "criminals ant
crooks."
But in the afternoon, unde~
cross-examination by Clark's at
torney Charles D. Sheehy, thc
FBI agent confirmed other as
pects of Clark's conduct.
It was Clark who called to Gue
rin's attention the illegality o
reimbursing ISC employees wh
attended a fund-raiser for presl
dential candidate Alexande
Haig, saidO'Callaghan.
It also was Clark who made a
"extra effort" to supply a gran,
See CLARK, Page A4
I * o d . r l r a YURICIPa I R A I H I C I .
MUNiClf'AL
COURT OF
Address:
<m196>716 - l l l . < r r ..I. P W ~ C ~ U
BOROUGH OF A V A L O N
DEFENDANT'S COPY
M u n i c i p a l Building, 3100 D u n e Drive

Avalon, N. J. 08202
I TO
2323 New Danville Pike
Conestoga, PA 17516-36
The records of this court indicate that

a complaint charging you with
0.p.e.e....df.oho1.....coLLt.i%i.n.e.K
....i.n....!!
in this court on the
MOlrWO"
Violation Date shown above and a summons was issued for your appea
(-'
,!
. .
Since you failed to appear in Court and have not paid the prescribed fine,
YOU ARE ORDERED to appear .in t h.~ scourt on .- 12-2-87 -STONE BARBOR COURT
(D.tO)
to plead not puilty, you must notify this court a? least 3 days prior to the new court date.
COURT APPEARANCE IS MANDATORY.
. at
7:30 p.m.
...................................................
lf you wish
VIOLATION CANNOT BE PAID THRU VIOLATIONS BURE
NOTE: Canadian Residents Please Send U. S. Currency.

IF YOU FA11 TO APPfAR OR PAY THE PRESCRIBED PENALTY:
RESIDENTS OF NEW JERSEY: (1) A warrant will be isssued for your arrest; (2) you may be subject to contempt of court and additional
penalties, and (3) you may be subject to possible revocation of your driving privilege by the Director of the Division of Motor Vehicles.
NON-RESIDENT MOTORISTS: (1) Your driving privilege in New Jersey may be revoked, (2) your own Commissioner of Motor Vehicles
requested to take action against you, and (3) a warrant may be issued for your arrest should you be found in this State.
PARKING OFFENDERS Residents and Nondesidents: In addition to the consequences listed above, a civil judgment may be entered
against you.
BY OROER OF THE JUD6E
.....
Mary Monks
......................................................
"
(Jude or Court Clerk)
Office Houn:
Mon. thrv Fri, 8:3O a.m. t o I p.m. 8 2 t o 4 p.m.

.............................
(609) 967-4457
(609) 967-8200
Telephone: .........................................................................................................................................................
(Please return this Notice and your Summons when making payment. A receipt will be sent to you only if your payment is accompanied I
a self-addressed envelope.)
1 4 0 ---
MUNICIPAL COURT OF
Address:
BOROUGH OF AVALON
DEFENDANT'S COPY
M u n i c i p a l Building, 3100I D u n e Drive

Avalon, N. J. 08202
Date ..
D.L. NO.
Caterbone
Stanley .I.
18 195 782 PA
Unregistered
Unregistered
-
EYE
CODE
7-15-58

......................
VIOlAT1ON(S)
SECTION
39: 3-17
VIOLATION
DATE IL TIME
8-14-87
SEX
8:42 p.m.
was filed in this court on
failure. to ...exhibit....d r i u e r ! ...~license

(ViolrHon)
th
~.-.16_:8~.-sST~E!~...~P
.- .........
Violation Date shown above and a summons was issued for your appearance in this Court on
mts)
YOU ARE ORDERED to appear in this court on
12-14-87
STONE HARBOR COURT - at

Wt.1
-.!.3~..~.&
.......... If you wisl
to plead not guilty, you must notify this court at least 3 days priw to the new court date.
VIOLATION CANNOT BE PAID THRU VIOLATIONS BUR1
NOTE: Canadian Residents Please Send U. 5. Cumncy.
IF YOU FAIL TO APPEAR OR PAY THE PRESCRIBED PENALTY:

RESIDENTS OF NEW JERSEY: (1) A warrant will be isssued for your arrest; (21 you may be subiect to contempt of court and additional
NOW-RESIDENT MOTORISTS: (1) Your driving privilege in New Jersey may be revoked, (2) your o m Commissioner of Motor Vehides
PARKING OFFENDERS- Residents and Non-Residents: In addition to the consequences listed above, a civil judgment may be entered
against you.
BY ORDER OF THE JUD6E
George B. Neidig. Jr.
Office Hours
Telephone:
Moa. thru Fri,
8:3O
Mary A. Monk:
a.m. ta 1 p.m.& 2 to 4 p.m.
(609) 967-4457
(Please return this Notice and your Summons when making payment.. A receipt will be sent to you only if your payment is accompvlied
a salfuddressed envelope.)
l.iUNlClPAL
COURT OF
Address:
Date
BOROUGH OF AVALON
DEFENDANT'S COPY
M u n i c i p a l Building, 3100 Dune Drive
11-12-87
.............................................................................................
DATE
The rewrds of this court indicate that
(L
TIME
a complaint charging you with ...........................sp.e.e.ding

....45....mp.h....in . 25..
mph . zone....
............... was filed in this court on th,
(violmon)
.................. HARBOR, N
Violation Date shown above and a summons was issued for your appearance in this Court on ..................... 9 - 16-87-STONE
(ruts)
YOU ARE ORDERED to appear in this court on
12-2-87 -STONE HARBOR COURT
at
7;30 p.m -......

: If you wisl
(Dale)
to plead not guilty, you must notify this court at least 3 days prim to the new court date. If you wish to plead guilty, you must pay ;
80.00
total penalty of $
your payment.
......... before your new court date. You must sign the back of the summons and return summons wit1
NOTE: Canadian Residents Please Send U.
S. Currency.

RESIDENTS OF NEW JERSEY: (1) A warrant will be isssued for your arrest; (21 you may be subject ta contempt of court and additional
NON-RESIDENT MOTORISTS: (1) Your driving privilege in New Jersey may be revoked, (2) your own Commissioner of Motor Vehides
PARKING. OFFENDERS Residents and Non4esidents: In addition to the consequences listed above, a civil judgment may be entered
against you.
BY ORDER DF THE JUDGE
................................................
Mary Monks
...................................................
(ludne or Court Clem
(Please return this Notice and your Summons when making payment A receipt will be sent to you only if your payment is accompanied
a selfsddrened envelope.)
MUNICIPAL COURT OF
Address:
BOROUGH O F A V A L O N
DEFENDANT'S COPY
M u n i c i p a l Building, 3100 Dune Drive

Avalon, N. J. 0 8 2 0 2
Date
TO
........................................ 11-.9 -81
Lonestoga, PA 1151b-36
6 STATE
Unregistered
REG. EXP.
DATE
Unregistered
DATE OF
EYE
CODE
7=-15-58
SEX
wOUTION(sl
39:3-4
SECTION
VIOLATION

having
..... an unregistered vehicle
d in this court on thc
MoIaWon)
p6~&
Violation Date shown above and a summons was issued for your appearance in t ~ b r @
&'
L....I
Since you failed to appear in Court and have not paid the prescribed'fine,
YOU ARE ORDERED to appear in this court on .......12.
-2-aZ.-STQNE...WB...C(lURT
ccuq
...................
at ......Z.:.30 ...p.m
-. . . . If you wish
to plead not guilty, you must notify this court at least 3 days priw to the new court date.
VIOLATION CANNOT BE PAID THRU VIOLATIONS BURE
NOTE: Canadlan R e d d e n h Please Send U. S. Currency.

RESIDENTS OF NEW JERSEY: (1) A warrant will be isssued for your arrest; (21 you may be subject.to contempt of court and additional
NON-RESIDENT MOTORISTS: (1) Your driving privilege in New Jersey may be revoked, (2) your own Commissioner of Motor Vehides
PARKING OFFENDERS-Residentsand Won-Residentr: In addition to the consequences listed above, a civil judgment may be entered
against you.
BY ORDER OF THE JUDGE
George B. Neidig, Jr.
Mary Monks
.........................................................................
(ludic or Coo* Clerk)
(Please return this Notice and your Summons when making payment. A receipt will be sent to you only if your payment is accompanied
a self-addressed enve1ope.J
I ,
VALORE, McALLISTER. WESTMORELAND, GOULD. VESPER & SCHWARTZ
h PROILSSII1NAL COiJQRAnOS
-
S T A N L E Y J. CATE:RIiONL'::
F M G ACCtJLlNTING L;EIiUICE:S
17C
-ra OREGON PIKC
1-ANCASTER,
F'A
17Xr31
1.8 1
877344h.-C
AUGUST
C/O
FILE
STATEMENT
()0~:8.24
US+ W I L L I A M h BE-TTY iJ'tlRrir:
G I J M M R R Y
T h i s s u m m a r y i nc ludec; a I. L i : r a n 3 a c t ion-: up t o a n d i nc Lud i ng
t h e m o n t h end P I - r c e d i ng tl-ii s s t a t e m e n t .
A n y cl-ed i t s o r r e c e i p t s
p r o c e s s e d a f t e r . t h a t d a t e m a r n o t be i n c ludea and w i L L be
reflected o n y o u r n e x t s t a t e m e n t .
Previ o u s
Less:
Statements
R e t a i ners
B A L A N C E
Fees f o r t h i s b i L L
T o t a L amount
N e w R a Lance FOI-ward
T O T A L EcALANCE NOW flLlE
o f
this b i L L
x*wX.x3c-xxx**xw*crx.*
VALORE. McALLISTER. WESTMORE~AND,GOULD, VESPER & SCHWARTZ

A PROF~SSIOSAL
MR.
S T A N L E Y .J
CuMnK~nos
C;ATETITIOE.IE
C / O FMG ACCOUNTING S E R V I C E S
1755 OREGON P I K E
:..ANCAST-ER,
F'&
17601
STATEMENT
VS.
-i
::
W I L L I A M h B E T T Y OiHARA
J U L Y 09 07
J U L Y 21 87
JI.JLY 23 87
.lULY 2 4 67
J U L Y 27 67
nJULY
27 67
J U L Y 28 B 7
J U L Y 29 87
8
J U L Y 31 87
, :-,
AUG
009824
03 87
TELEF'I.iONE CONFERENCE W I T H S. CATEREmNE

P R E P A R A T I O N O F L E T T E R TO S. CATERHONE
TELEPHONE CONFERENCE W I T H S. CATERBONE.
O U T S I n E O F F I C E CONFERENCE W I T H S.
CATERBONE, I N C L U D I N G T R A V E L
TELEPHONE CONFERENCE W I T H J. HEHAN.
TELEPHONE CONFERENCE W I T H YOI-AND6 ANXI
P H I L CATERBONE.
TELEPHONE CONFERENCE W I T H S. CATERNONE
TELEPHONE CONFERENCE W I T H G. N E I D I G ;
R E V I E W O F DOCUMENTS; CONFERENCE W I T H R.
M C A L L I S T E R AND A . B O N G I O V A N N I RE: C H O I C E
OF COURTS^ TELECONFERENCE WITH
n.
CAMPBELL AND S. CATERBONE
L E G A L RESEARCH RE: K I I V E R S I T Y
J U R I S D I C T I O N AND VENUE: CONFERENCE W I T H
S. CATERBONE; TELECONFERENCE W I T H T.
LANZA
TELEPHONE CONFERENCE WITH G . N E I L I I G
(O'HARA ATTORNEY?+ P. C A T E R H O N E t GI
N E I D I G AND S. CATERHONE
T O T A L HOURS
FOR S E R V I C E S RENnERED
BALANCE DUE
I N T E K E S T WII-I..
B E CIiARGELI AT TkIE R A T E
PAYMENT I S D U E UPON R E C E I P T .
O F 1%PER MONTH ON EALANCEG R E M A I N I N G U N P A I D AFTER T H I R T Y DAYS.
Twenty-five
...........
lJous??d,,Se~enH
x.
..
(Stanle~_J~-!terbohe_L
............................
EXPLANATION OF RIGHTS IN CONNECTION WITH SIGNING OF

INSTRUMENT CONTAINING CONFESSION OF JUDGMENT, AS
REQUIRED BY OPINION OF SUPREME COURT OF THE UNITED STATES
RE:
NOTE IN FAVOR OF
Millard E. and Dorothy A. Johnson , AND AGAINST
THE UNDERSIGNED, CONTAINING A CONFESSION OF JUDGMENT.
DATED :
C'i
July 1, 1987
AMOUNT :
$25,733.00
1. The undersigned certify that the Income of the undersigned,

or conjugal (husband-wife) income with both spouses executing the '
document, is at least $10,000.00 annually.
...
.ti
~.
.<.
+
2 . The undersigned clearly and specifically unaerstand that by

signing the note above referred to, containing a Confession of Judgment clause:
4:
.;&
(a) We and each of us authorize the Prothonotary or Deputy

Prothonotary to enter a judgment against the undersigned, or either
of us, at its discretion and in its favor without notice and without
declaration of default for non-payment, which entry will give the
holder a lien as security for payment upon the real property (including
the home) owned by the undersigned at the time of entry, and a lien
on personal property owned by the undersigned at the time it is given
to the Sheriff for executiofi.
(b) We and each of us waive all right to notice and to have
an opportunity to be hear4 prior to the entry of the judgment on the
Court records, understanding that the only method to challenge this
judgment would be by proceedings in Court to open or strike it which
proceedings would result in substantial attorneys fees which the
undersigned would have to pay.
(Without such 'clause containing a
Confession of Judgment the holder would have to file suit against the
undersigned which would give the undersigned an opportunity for a
hearing which the undersigned does not have by reason of the Confession,
i
3 . The undersigned acknowledges receipt of a copy of this affidavit

and certifies that after reading and fully understanding it, the
. undersigned have signed this affidavit intentionally, understandingly
being willing to sign such
and voluntarily waiving all the above r!ghts,
note despite the consequences set forth above.
:
!
Affirmed to and Subscribed

(
before me this
eel
J / day
.+
.c
.j
ROBERT E. KAUFFMAN
PRESIDENT
Mr.
Millard Johnson
3450 Duff Avenue

Lancaster, PA 17601
Dear Bill :
I am sorry that I was not in the office last Thursday

or Friday to accept a telephone call.
I did, however,
receive your message that you were going to take some
kind of "action".
In order for Financial Management Group to be successful,
!I:ve returned to the full time work of building the
flrm.
We are referring all questions regarding Stanley
J. Caterbone to our counsel Craig Russell of Russell,
Kraft, Gruber and Huber (569-5383).
Should your counsel
need to speak wlth us, he may call Mr. Russell.
(1 have been told that Mr. Patterson no longer represents
the Caterbone family and no action is pending on their

;behalf concerning Stanley.
Best regards,
Robert E. Kauffman
President
REK: lmk
CC
Scrurl*ler Offer& tnrovph Ptanner's Scrumles Group. InG

A R r p m l n d ilrokcrlL%.ler
Member SlPC
M m k r NASD
F i n a c i a l Management Group, LTD.

1755 Oregon Pike
L a m a s t e r , PG
17601
(717) 569-5555
Robert Kauffman, P r e s i d e n t
Mickel N. mrtlett, E x e c u t i v e V i c e P r e s i d e n t
P. Alan Loss, Board of Directors
R o b e r t Long, Board of D i r e c t o r s
P e t e r Peneros, Broker
._-.
-
Defamation of C h a r a c t e r
Slander
Mental Duress
Malice
Unfair C a T p e t i t i o n
Wrongful I n t e r f e r e with BusiRelations
Wrongful I n t e r f e r e m w i t h C o n t r a c t s
Trezpass to P e r s s n
Burglary
Theft
Criminal Mischief
I n v a s i o n o f Privacy
T r e z p a s s to Personal P r o p e r t y
Undoinf l u e m
Fraud
Conspiracy
EMxzzlmnt
Breach of C o n t r a c t
Extortion
Forgery
S b r h o l d e r Freeze-cut
- -
Cornno-lth
M t l 0 ~Bank
1
Penn m a r e
Lancaster, PA
176432
W l l o n Bank
Pittsburg, PA
Parent Carpany
Mike W o l f , Executive Vice President of Comnercial Lending
f ' w PEAJBLOS
U(;ATIONS.:
Defamation o f Character
Slander
Mental Duress
Malie
Unfair Cocrpetition
Wrongful I n t e r f e r e ~ zw i t h Business Relations
Wrongful Interference w i t h Contracts
Trespass t o Person
T M t
Criminal Mischief
Invasion o f Privacy
Trespass to Personal Property
Undoinf luenoe
Fraud
Conspiracy
EntEzzlement
Breach of Contract
Extortion
Ckce Smith, Execxltive Vice President

Pete Wolfson, Sal-n
Defamation of Character
Slander
Mental IXlress
Malice
Unfair Conpetition
Wrowful Interference with BusiRelatiom
Wrowful Interference w i t h Contracts
T r e s p a s to Person
Theft
C r i m i m l Mischief
Invasion of Privacy
Trespass to Personal Property
Urdoinf luence
Fraud
? Corqsiracy
I EmSezzlement
Breach of Contract
Extortion
Farrcers F1-t Bank

L l t r t z , PA 17512
Pete Richter, Pkrmger of La-ter

Glenn Nelsn, President
Shcpping Center Branch
r/Aw ,455
PLLE%~.ICNS:
Slaoder
Mental Duress
Mall03
Unfalr Corrpetr t i o n
Wrongful Interference w l t h BusiRelations
Wrongful Interference w l t h Contracts
T r e z p a s t o Pemn
,ary
.
- .
Theft
Invaslon of Prlvacy
Trespass t o Perzonal
Undolnfluence
Fraud
Cor?zplracy
Breach of Contract
t Extortion
C'
Property
Hunllton Bank
Oregon Plke
Lamaster, PA
17601
Chris Izzo, Loan Officer

Corestates, Credit Card M n i n i s t r a t o r
Slander
Mental Duress
Malice
Unfair Conpetit i o n
Wrongful Interference with Business Relations
Wrongful Interference with Contracts
Trt o Person
Trto Personal Prcperty
Undoinf luence
Fraud
Coqiracy
Breach of Contract
Extortion
F u l t o n Bank
O l d Hickory B r a n c h
Stor L a n c a s t e r . PA
17601
?6tl
U n f a i r Conpeti t i o n
Wrongful I n t e r f e r e n c e w i t h B u s i n e s s R e l a t i o m
Wrongful I n t e r f e r e with Contracts
Undoinfluem
Fraud
Comiracy
Erkezzlement
B r e a c h of C o n t r a c t
Extortion
Cor
Brc
Berdett T m l l n Hospital
Cape Nay County Courthouse
Stone Harbor, NJ
08247
Social Worker
Psychiatrist 1
Psychiatrist 2
WEGAT IONS:
Slarder
k n t a l Duress
Malice
Unfalr Carpetrtlon
Wrongful Interferew l t h Busines Relatiow
Wrongful Interference w i t h Contracts
Tnzspass to Person
Irwa~lon
of Prrvacy
Trespass to Percsml Property
Undolnf luence
Fraud
Cowpiracy
Breach of Contract
~orgsry
Neg11gsnce
Avalon Police DeparWnt

Avalon, NJ
08247
Officer Dean
Fat Aswrciate
Slander
Mental Duress
Malice
Unfair Conpetition
Wrongful Interference with Business Relations
Wrongful Interference with Contracts
Trespass to Percan
Burglary
Theft
Criminal M i x h i e f
Itwasion o f Privacy
Trto Personal Property
Undoinf l u e n z
Fraud
Conspiracy
En'&ezzlmnt
Breach of Contract
Extortion
Forsew
Sharholder Freeze-out
mligence
k n h i m Towrship P o l i c e Deparbnent
C i r c l e Drive
Lancaster, PA
17601
D e t e c t i v e Mathias
Officer 1
Officer 2
Officer 3
Officer 4
Slander
k n t a l hresr
Malice
'j
Wrongful I n t e r f e r e n c e w i t h Business R e l a t i o n s
T r e s p a s s to Person
8urglat-y
Theft
C r i m i n a l Mischief
Invasion of Privacy
T r e s p a s s to Personal P r o p e r t y
Undoinf l u e m
Conspiracy
Negligznce
L a n e a s t e r P o l l c e Department
W. Chestrwt S t r e e t
L a n e a s t e r , PA
17602
Slander
Mental DuMalioe
Wrongful I n t e r f e r e n c e w i t h B u s i n e s s R e l a t i o w
Wrongful I n t e r f e r e n c e w i t h C o n t r a c t s
Trto Person
Undoinfluence
Fraud
Conspiracy
Negligence
Jocsh R c d a , E s q .
301 C l p k r Building
36 E. K i y Street
L a m a s t e r , PA
17602
(717) 397-5791
Slander
k n t a l Duress
Malice
Unfair Conpeti t i o n
Wrongful I n t e r f e r e w i t h Business R e l a t i o m
Undoinfluence
Fraud
Colqriracy
Embezzlenmt
Breach of Contract
Extortion
S h a r b l d e r Freeze-cut
Neglisnce
Lou S c ~ l l e r Esq.
,
V a l o r e , M c A l l i s t e r , W i x o r e l a n d , Gould, V e s p e r & Sctwartz
Northfield, NJ
(609) 64-1111
Mental Duress
Malice
U n f a i r Gorrpetltion
Wrongful I n t e r f e r e n c e w i t h B u s i n e s s R e l a t i o n s
Wrongful I n t e r f e r e n c e w i t h C o n t r a c t s
Undoinf l u e n c e
Fraud
Conspiracy
mzzlement
Extortion
Negligence
D r . W r s h a l l L e v i r e , E ffl D P A
l a 1 T i l t o n Road
N o r t h f i e l d , NJ
(653) 646-2011
D e f a m t i o n of C h a r a c t e r
Slander
Mental LXlresr
Malice
Unfair C a r p e t i t i o n
Wrongful I n t e r f e r e n c e w i t h B u s i n e s s Relations
Wrongful Interference w i t h C o n t r a c t s
T r e a s s to Person
I n v a s i o n of P r i v a c y
Undoinf l u e e
Fraud
Comiracy
Fdxzzlmnt
Extortion
Neglige-
B I L L TO: :S J CgJEEf#EAIZSOCIATES
HARBOR,
TRACKING NOS
REFERENCE
SENDER A C T I V I T Y SUMMARY
08247
I N V O I C E NO. 6 - 2 5 0 - 7 3 1 9 7
SENDER'S AME AN0

ACCOUNT A ~ R E S S
1 SHIPPED
1/
D I A N E SAWYER
CBS
555 W 5 7 T H S T
NEW YORK C I T Y
NY 1 0 0 1 9 AA
DELIVERED 0 8 / 3 7 / 8 7 11:2 2
SIGNED: 0 PARKER
08/28/87
(SENDER SUBTOTAL
RC-M-1279 9/05 FEC Repragraphics
PACKAGES
8 WEIGHT
R E C I P I E N T INFORMATION AND
PROOF OF DELIVERY
STAN CATERBONE
S J CATERBONE ASSOCIATES
554 BERKELEY AVE
STONE HARBOR,
N J 08247
5587942463
4632584
NJ
PAC
DAl
ACCOUNT NO.
CHARGES
SERVICES
14.0C
1 0 . OC
NA OVRNIGHT L T R
S A T SERVICE
2 4 . 0 0 1 ~T H~ I ~S AMOUNT
JOSEPH F.
RODA. P.C.
A T T O R N E Y S AT L A W
301 ClPHER BUILOINC.
36 E A S T K I N G STREET
LANCASTER. P E N N S Y L V A N I A 17602
TELEPHONE (7171 3 9 7 - 3 7 9 1
.JOSEPH F R O D A
PAUL
5 ROMANO
September 2 ,
1987
5 5 4 B e r k l e y Road
S t o n e H a r b o r , N J 08247
Dear S t a n :
Our r e c o r d s show a p a s t due amount o f $525.48 o n your
a c c o u n t , as r e f l e c t e d on o u r s t a t e m e n t o f J u l y 22, 1 9 8 7 , a
copy o f which i s e n c l o s e d f o r your c o n v e n i e n c e . A s you w i l l
r e c a l l , t h i s i n c l u d e d copying c h a r g e s which w e advanced on
your b e h a l f .
Your immediate a t t e n t i o n i n b r i n g i n g t h i s a c c o u n t
c u r r e n t would be a p p r e c i a t e d .
I know t h a t you w i l l t a k e
c a r e o f t h i s , and t h i s n o t e i s s e n t s i m p l y by way o f a
reminder.
I saw Tom t h e o t h e r n i g h t and had a n i c e c o n v e r s a t i o n
w i t h him.
C a t h o l i c High s h o u l d h a v e h i r e d him.
With k i n d e s t r e g a r d s ,
Sincerely,
A
w
&
G
z
k
ose h F. Roda
JFR:dlb
Enc .
..--
^-"
--
. "..,..,," ,...
"..,,...
., -.,. ~ , ,
DISTRICT JUSTICE
MAGISTERIAL DISTRICT NO{;>14>
_ 7--I
ox;'y.&gaw
. ----i N C l O E N T NUiilEER UCR NO.
.,..__
i I>-I>>u
OTN
b384SbCi-13
L-.::
C O M M O N W E A L T H OF P E N N S Y L V A N I A
vs.
DEFENDANT
- ,1
7 . .
*,
-- ,-:.. a ; . . >
i\
j:.,*
(NO##,<
"fAffi",,l/
of
PLxJ~oir;lT
p *lice
..%
..
mflle
ADoREss 2323
.,is:
Lu'i;.
/ti
RSA
A K A
s;j
>*
i;tii:t5 July 1958
2:-3;fi3
do hereby slate:
I accuse the above named defendant, who lives at the address set iorLh above or,
(1)
I accuse an individual whose name is unknown to me but who is described as
-:
4
'
.
?
his nickname or popular designation is unknown Lo me and, therefore, 1 have designated him herein as Johr
' ~ b d p
with violating the penal laws of the Commonwealth of Pennsylvania a t
(Plur.~.Polirieol Subdivis#onl
in
.x
Participants Were
s-py
U,
J,
(iftl#ere
DutlCfKM dr UoOU 1 %pi,
~&&&"k
County on or about
parIicip(1n11. plucc illnr
tlulvtsr
Lrrc, r r p r u r i n l rhr ;,u?r,l,ofuhovr rl<,,ir#danr/:
p&&.;., ;.-
(2) The acts committed by the accused were:@

~ p , ~ ~ ; r L y ~ , ~r~~;j;:2~,j,;;
;;~~!;
?
:
.?r
Said &tor did tlurakn ta d
t auy c r h of v i o l u ~ ~uiih
o ti& intat to txazwka atme
to IXSUSO cvczautian or' a
>laso US irc;maLly as facility. of pub310 tzasrmt;rtLq
;is1%&4 ?O
,
OiU130 G&W
pCbU b i C Q l ? S G l h i ~ c tOX b ~CCii'L6wd l W X q p d 0
f
~
~
tmmx a;c b c o w ~ e Yo
, Uitr
actor
p k z e ii @1oiu1 w l l to
P f f h af
y& 2,- thqpsu~t
cL~u.9 1755 Crcr*
2 2 h
~i~
~ taFL. b ~ h e t i n
hru & licroa W
- 1 %yt. i]?. Tiic uiU w atxmxd by J u u Eai;c.r, ~ 1 ;k i p l ~ y w ,crtxi tis c a l l e r utatsd I r
&-visa yiru all to but out of a x 3 bdlriiy: if yarr v;luc ycjur a2.t-b".
. i i cziUm2 %.id6ut.j
fa
byliisvlacutus &at d iheakr~ecict3L.b~ikzXiaqiz-.
k i d a ~ t u bkrmx'pr:
r ~
!@ ~ ~ ~ e t i e o ~ p a e w s i n t L o ~ c - ~
-,
'$6
..
"
all of url~ichwere against the peace and dignity of the Commonweallh of Pennsylvania and contrary to the Actof Ass,
and
of the Act of .
.
.. . .. .
or in violation o f . q$ r''r,ur,/
.
(Sub.rurriorrl
or the
'l%W ib -.WO
Ordinance of
(l'ubtirul Sub-divisirml
(3) I ask that a wanant of arrest or a summons be issued and that the accused be required to answer the charge!
have made.
(4)
I verify that the facts set forth in this complaint are true and correct to the best of my.knowledge or informati
and belief. Thii verificition is made subject to the penalties of Section 4904 -of t. h e W i u Coc)t?.(l8 Pa. C. S.
..-...
54904) relating to unsworn falsification to authorities.
.
.
.S*..' , , L . ...
.-
s o ~ t d r r3 , 19 157, I certify the compluint has .6een-p~o&b~'cbrnpleted a

/ 'D NOW, on this date
. , <
h i e d , and that there is probable cause for the issuance of process.
. - . ,. .. .. 8
Clark, Guerin
-
Continued from Page One

jury that is investigating ISC
with documents that other ISCofficials balked at sending, because they were too damaging,
the agent confirmed.
After Guerin and associate Michael A. Peck "purged" a file
containing documents revealing
wrongdoing by United ChemCon, it was Clark who reproduccd and replaced those items,
O'Callaahan said.
( ~ u e r y nowned 20 percent of
Chem-Con. Twelve others have
been charged with wrongdoing in
a defense contract fraud there.)
Clark also sent the grand. jury
one of his memos, which quotes
ISC executive Donald Peterson
as saying that ISC and Chem-Con
exchanged false invoices to
"make sales look better and collect proper payments from the
Defense Department."
: Peterson said he, Guerin and
i fellow ISC executive CarlDreyer
took part in the scheme, which
was started in 1978.
The scheme also served to
make ISC appear to be a bigger
company when it went public in
1982,according to the memo.
While Clark was aware of these
x::~~4~
activities,
~ . : ~ u he
~ was not a p a r t of
, Guerin's inner circle, said O'Callaghan.
'
Guerin himself told the agent
that he did not rely onClark's advice and excluded Clark from
sensitive discussions - actions
which frustrated and irritated
the attorney.
Along that line, Clark told ISC
colleagues that he gave advice to
keep the company clean, but
Later discovered that his advice
was not followed, the agent
testified.
A striking example of Clark's
efforts was his contact with a
Washington, D.C., law firm for
advice on handling- auestionable
.
ISC contracts.
~ response
The ~ e b r u a r1988
from attorney Judd L. Kessler,
submitted to the court as evidence, reveals how the questionable contracts caused internal
j turmoil.
The letter recounts how James
Deitch, then controller of ISC
Group Inc., and Michael Liddick,
then its treasurer, had apI' proached Clark for advice.
They long had suspected that
ISC's financial portrayals were
"less than accurate."
I Their feelings were fueled by
an August 1987 letter from ISC's
; outside auditors (Peat Marwick),
in which the auditors criticized
~~
!Tee"
r-r
..--*--I-
--A
>.
K-17-9a
After Guerin and associate Michael A. Peck

'purged' a file containing documents revealing wrongdoing by
United Chem-Con, it
was Clark who reproduced and replaced
those items, O'Callaghan said.
shareholders- to
~- invest.
So they went to Clark for help.
wondering what liability they
miaht face. Clark in turn went to
~eisler.
"We are doubtful that the conduct of Deitch or Liddick to the
present date could result in personal, civil or criminal liability,"
Kessler replied.
"However, (they) can and
should scrupulously avoid participation in the making of misleading representations to parties
outside the company." he said in
his response.
ISC financial officers "should
exercise great caution in the
months ahead. They should continue to raise questions, should
consider documenting their actions and should scrupulously
avoid acts which would indicate
complicity," Kessler advised.
~
~~
;..,,LL-yJ
II
...
>.<JJ.
~ o r n p l m n nruuanurrs
LGII'
81
vtnrr v a r $ ~ c ~ p i l n f s
DISTRICT JUSTICE
;;-1-02
IMAGISTERIAL DISTRICT NO.
<,;;f&+,,,~'f&<j~()G i > i ~ i - ~ ~ y l
C O M M O N W E A L T H O F PENNSY L V A N l A
vs.
DEFChOANT
do hereby state:
I accuse Lhe above named defendant, who 1ivt.s aL the address set forth above or,
(1)@!
I accuse an individual whose namc is unknown Lo me but who is described as
X
0
his nickname or popular designation is unknown to mc and, therefore, I have desigt!ated him herein as Johl
wilh violating the penal laws of the Commonwe;tlth of Pennsylvarlia a t 1'755 Ore&on 'i'k- -caste:
(I'lucc.I'~,lir!..ulSt,h,finlio,al
$
~ : a d ~ e iTn~ i p
<
Participants were
>
Uc-
in
kllc&sCt?r
County on or about
2230 t o 2330
3
07
l!Yf3
.Fr%&:
-
( i , ~ t ~ r r r ~ ~ ~ ~ r r ~ p ~ r r i c i p o , ~ t s . p ~ u c ~ ~ t ~ t r i r , r ~ r r ~ ~ ~ ~ ~ z r r u . r c p c v r i , ~ ~ i ~ ~ ~ r ~ u r r ~ ,r, I~. :r. ~ ~ ~ b

<:
3
( 1)
Criniriul ;::iticl-iiei (P-5)
iis:ll~rilul !iesl;ruinf ( i i - 1 ) IJnltiwful l l ~ e3 P Cu~;iputar (
3 'I'lmft Uy
i
i
' - 3 )
l i o b b u r y (2-1 )
(2) The acts committed by the accused were:@
21- Surglury- Acuuard did u o l x u l u l l y rutsr u b u i l d i n g o r occupied

s t r u c t u r e o r ~;,epiraZe:y tjecured cr n c c c ~ i e dp o r t i o n t k ~ e r c o f , t o w l t : o
1
, t h e property of 2 i n i i n c i n l Hgt. Group 1755 O r e ~ o n2k. I.tinctie$er
l./tc71, ti?e prersise ul; t h e t i u e n o t beitid open t o the p u b l i c o r uJ11cL trtc
+ccubeci was no
sed o r ~ r i v i ' red t o enter, t r i t h t h e i n t m t t o conzl
r c ~ ; u ~ ~ ~ x ~ i - : l C
~ r i s i n a l &~shief tirid T%eft and $p,erof..: C~kiiuter.
.'.
5 i d i t i t r r l t i o n a l l y o r r e ~ k l e ~ t~l ~
;~
O C;ur:t
'
pa/
~
as T o entl;in,jrr PerLiufi
02 jiI.Opcr:y.
uachine, 'telephone Breadbox, (

(
1111 of which were against the peace and dignity of the Commonwealth of Pennsylvania and cotitrary t o the Act of Ass,
or in violation of 2 ~ : .
and
rp,.e
o f the Act of ,Ph Critueu Co2e
%~'.,,XW~
or the
Ordinance of
&.ub-sc.-tru;d,
--
(Politicel Subdil.irinn)
(3j I ask that a warrant of arrest or a summons be issued and that the accused be required to answer the charge:
have rnadi.
(4)
I verify that the facts set forth in this complaint are true and correct t o the best of my lmowledge or informati
and belief. This verification is made subject to the penalties of S e c t i o ~4904 of the C r i e s Code (i8Pa. C. S.
4904) relating to unswom falsification t o authorities.
/
3 NOW, on this dale
. . .
---
.;
, 19 1 , ,~ I certify the complaint h;qs been properly -.cop~pleted

a
-.ep
.,
verified, and t l ~ a there
t
is probable cause for the issuance of process.
,'
,
'
I'
'-
Count # : d G n l a w f u l R e s t r a i n t - A c c u s e d d i d u n l a w f u l l y and k n o w i n g l y r e s t r :
a n o t h e r u n l a w f u l l y i n c i r c u m s t a n c e s e x p o s i n g s a i d o t h e r p e r s o n o t r i s k ol
s e r i o u s b o d i l y harm, t o w i t : a c c u s e d d i d p u l l S t a c y L. ' d a t e r s by t h e w r i s t
t h r o u g h o u t a b u i l d i n g w h i l e h e c a u s e d damage t o s a i d b u i l d i n & and s t o l e j
'-on ';he f i l e s .
Accused t h r e a t e n t o harm Waters i f s h e would n o t cooper:
a con?
Use o f Computer-Accused d i d a m s , m r , damage o r dc

cornouter swstem. c o m ~ u t e rn e t w o r k , computer S o f t w a r e , cornputt
e o f , w i t ; t h e ' i n t e n t t o i n t e r u p t . ths
ye o r t : x e c u t e a n y scheme
v i c e s by means o f f a l a e
, t o TIC a c c u s e d d i d
EBPPB -3$
x.
ccused did unfaefuily t a k e o r e x e r c i s e c i n t r l
moveabl n r o u e r t g of a n o t h e r t o w i t , z c c u s e d d i d remove numerous f i l e s i'
t h e r e c o r d s a r e a s of Y l n a n c i a l Mgt. Group 1755 Oregon Pk. L a n c a s t e r , Pa.
w i t h t h e i n t e n t t o d e p r i v e t h e owner t h o use t h e r e o f .
S e c t i o n 3921 ( a )
Count #6- Robbery-accused d i d , i n t h e c o u r s e o f c o n m i t t i n g a c r i m e , t h e l

by u n l a w f u l t a k i n g , b u r g l a r y , Unlawful Use of Computer, t h r e ~ . t e n a n o t h e r
o r i n t e n t i o n a l l y p u t her i n f e a r o f immediate s e r i o u s b o d i l y i n j u r y , t o
a c c u s e d d i d thseaten t o knock o u t S t a c y L Waters when s h e t r i e d t o r e s i s
n i s e f f o r t s t o commit t h e a b o v e l i s t e d cr.irnes.
S e c t i o n 3701 ( a - I - i i )
L i s t o f A c t s Committed by Accused:
B u r g l a r y Sec-3502, C r i m i n a l Mjsc:l.ief
Sec-3304 S u b s e c - ( a ) (.2.) .. U n l a w f u l R e s t r a i n t Sec-2902 S u b s e o - ( I )
U n l a w f u l Use of G o q p u t e r Sec-3933 ~ u b s e c - ( a ) ( 1 ) ( 2 ) , and ~ o b 5 e r yS e c 37
Sujsec-(a) (I ) ( i i )
..
ilof which were qainst thepeace and dignity of the Commonwealth of Pennsylvania and contrary to the Act of X
<
-..- . ~ - 7 ? ? - . 7 L
-5: 7 .- ;,-,-r in violation of . . .
o f t h e ~ c t o f ' q ,rim??. %,f?
l~crrionl
andT: CiYlrrrnu,,/
....
.-_ . . . - -.-.---,--.. .. .. . - . Ordinance of '. " - :.:
. - :....... >:-. ...........
.
r the '
fPoIirirar SubUivtrronl
;I I ask that a warrant of arrest or a summons be issued and that the accused be required to answer the c h q
have made.
L) I. Det. L a r r v G. P I a t h i ~ s
verify that the facts set forth-in this complaint are true
correct to the best of'my knowledge. information and belief.
. . penalties of Sec
4904 of the Crimes Code (18P a C. S. s 4904) relatine.
ontles.
- to
, kc/.,./ / /-&&-
, 19
4 Seu
(Signah.rc of Complninanc)
6'WDNOW.on
this d a t e 4 S ~ 87
D
. 1 9 ,
that there is probable cause for the issuance of process.
-fl3+.-&-..-
- ,.
( . ~ I z ~ ; r r = r #Oistr;<c#
al
l I s x u t ~ 2A~ ~ ~ h o r ~ r v ~
RECEIVED FROM
Caterbone, Stanley Joseph
Four hundred a'hd sixty-ty-------,,
. .L.,.;'
(,
! I
. ,
/'
t$,
,,
'~-.
THE SUM OF
90/100----------
------------,------------L---~-~--~~
/: i
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-(*;
..
1
COMMlTlNG OFFICER SIGNATURE
. ..
DOLLARS
INMATE SIONANRE
,
%,.
.',
+.
,,,, .I
./
1755 Oregon .
Conestoga Man Linked to Theft
.. .
I
i,
Manheim Township police ar!
i rested a Conestoga man Thursday
i , n$ht on charges that he erased
.'.
1 ormation from a township company's computers, stole files and
. I damaged equipment.
Stanley J. Caterbone, 29, of
2323 New Danvilie Pilte. . was
I
, charged with btsrglary, thetl, un,f l a d u l restraint, robbery, unlawuse of a computer, criminal
I., ful
mischief and terroristic threats.
.. . .
' ~ e t e c t i v eLarry ~ a k i said
s
- w e . victim, Financial ManageI'
meht Group Ltd.,

Pike, lost an estimated
$60 Wo-as
.I
1.
I
i'
,'
EX-~orkei,Charg&d
In Bvrglgry
.
at Firm
,
The suspect also was served a i

warrant, for terroristic threats in
a case snvolving another female ;
employee of the firm. Caterbone,
a former employee of the coppa- . '
ny, was committed to prison,in
lieu of f20,W bail.
crimes.
He also was servgl a warrant'
for terroristic threats tn a case Invoivin another female employee ,
ofthe-firm. .
.
CAterbone, a former 'employ. /
ee of the coppany, was commit- ,
ted to prLson 1n l ~ e u
of $20,OW bar\.. :I
:.
'A:
'
NAME :
,',--
,.
BLOCK:
CELL :
,
ATURE:
DATE :
~-
.
!.
ANYONE DESIRING TO COMMUNICATE WITH THE FOLLOWING STAFF MEMBER OR AGENCIES, INDICATE
BY PLACING AN "X" ON THE APPROPRIATE L I N E . REMEMBER ONLY ONE (1) CHECKED PER REQUEST.
I F MORE THAN ONE L I N E I S CHECKED, THE REQUEST WILL BE RETURNED UNANSWERED. I T I S IMPORTANT
THAT YOU GIVE A COMPLETE EXPLANATION.
(PROVIDE ALL NEEDED INFORMATION) AS TO THE
REQUEST YOU ARE SUBMITTING. T H I S WILL ALLOW A FASTER ANSWER. YOU ARE TO PLACE THE REQUEST
I N THE DESIGNATED REQUEST BOX. ONLY EXCEPTION GIVE MEDICAL REQUEST DIRECTLY TO THE MEDICAL
TECHNICAN DURING SCHEDULED MEDICATION TIME.
MEDICAL DEPT. - S I C K CALL:

(DESCRIBE THE MEDICAL PROBLEM: WHETHER TREATED BEFORE, BY WHOM?
EDUCATIONfTREATMENT PROGRAM:
(EG.,
GED, ABE, SELF HELP WORKSHOP, ETC.
WELFARE GRANT:
(MUST HAVE 50.00 OR LESS I N PRISON ACCOUNT TO BE ELIGABLE, MUST SUBMIT TWO WEEKS PRIOR
TO D E F I N I T E RELEASE DATE, ALSO WRITE YOUR DATE OF BIRTH AND SOCIAL SECUqITY N W E R ) . .
SUPPLY OFFICER:
( L I S T ITEM NEEDED S I Z E ) :
- , I
SPANISH SERVICES COORDINATOR:

L o s q u e necesitan a y u d a d e c u a l q u i t e r clase y no s a b e n i n g l e s deben d e m a r c a r esta
l i n e a y echar l a p e t i c i o n e n l a caja d e s i g n a d a p a r a s o l o c o t u d e s ( R e q u e s t s ) .
QEN
:
DEPUTY WARDEN:
DIR. OF TREATMENT:
ASSOC. WARDEN:
COUNSELOR:
OFFENDER DEV. SER.:
CHAPLAIN :
VISITATION:
PRoBATIoNIPARoLE:
PUBLIC DEF. &./Mrs.:
RECREATION DIR.:
VOCATIONAL DIR.:
BAIL ADMINISTRATOR:
WORK RELEASE:
CLASSIFICATION COMMITTEE:
OTHER (PLEASE SPECIFY):
AGE :
NAME :
RELATIONSHIP :
YOUR REQUEST (COMPLETE INFORMATION) PLEASE PRINT
I
PERSON ANSWERING REQUEST:

ANSWER:
AGENCY :
DATE:
uu~rr'-u
L u l u u4r
TVRI'L
(PLEASE PRINT)
/]
BY PLACING AN'"Xm' ON THE APPROPRIATE LINE. REMEMBER ONLY ONE (1) CHECKED PER REQUEST.
I I F ?IORE THAN ONE L I N E I S CHECKED, THE REQUEST WILL BE RETURNED UNANSWERED. I T I S IMPORTANT
1 THAT YOU GIVE A COMPLETE EXPLANATION.
REQUEST
YOU
ARE
SUBMITTING.
T
H
I
S
WILL
ALLOW
A FASTER ANSWER. YOU ARE TO PLACE THE REQUEST
I
I I N THE DESIGNATED REQUEST BOX. ONLY EXCEPTION GIVE MEDICAL REQUEST DIRECTLY TO THE MEDICAL
1 TECHNICAN DURING SCHEDULED MEDICATION TIME.
I
,-- ,,
E MEDICAL DEPT. - S I C K CALL:
,qi-'l
LA
b ~ / \
EDUCATIONjTREATMENT PROGRAM:
(EG.,
L.
WELFARE GRANT:
(MUST HAVE 50.00 OR L E S S I N PRISON ACCOUNT TO BE ELIGABLE, MUST SUBMIT TWO WEEKS PRIOR
TO DEFINITE RELEASE DATE, ALSO WRITE YOUR DATE OF BIRTH AND SOCIAL SECURITY NUMBER)
SUPPLY OFFICER:
GED, d B E , SELF HELP WORKSHOP, ETC.

Los que n e c e s i t a n ayuda de cualquiter c l a s e y no saben i n g l e s deben de marcar e s t a
l i n e a y echar l a p e t i c i o n e n la c a j a designada para solocotudes (Requests).
PROBATIONJPAROLE:
PUBLIC DEF. M r . / M r s . :
RECREATION D I R . :
VOCATIONAL D I R . :
BAIL ADMINISTRATOR:
WORK RELEASE:
OTHER (PLEASE SPECIFY):
wr9SrN:
DEPUTY WARDEN:
I DIR. OF TREATMENT:
E ASSOC. WARDEN:
(
COUNSELOR:
(
OFFENDER DEV. SER. :
(
CHAPLAIN:
i VISITATION:
V
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'<F
THE VILLAGE OF OLDE HICKORY

VILLAGE SQUARE OF OLDE HICKORY
OLDE HICKORY RACQUET CLUB
BOYDfWILSON BUILDING
OREGON PIKE
MANHEIM TOWNSHIP
LANCASTER COUNTY, PENNSYLVANIA
for
BOYD/WILSoN COMPANY
MARY L. CLINTON
APPRAISAL ASSOCIATES, INC.
PRESIDENT
DATED:
SEPTEMBER 1, 1985
.,.
. ..,
.. . .. .-
430 WEST CHESTNUT STREET
October 2 3 , 1985
BoydfWilson Company
208 Oregon Pike
L a n c a s t e r , PA 17601
ATTN: Dale Witmer
RE:
The Olde Hickory Complex
Dear M r . Witmer:
I n accordance with your r e q u e s t , I have examined t h e above p r e m i s e s , c o n s i s t i n g
of a group of townhouses, 3.0 s t o r y e l e v a t o r garden apartment b u i l d i n g s , a l o c a l
shopping c e n t e r , ( 2 ) o f f i c e b u i l d i n g s , a r a c q u e t c l u b and miscellaneous improvements
i n c l u d i n g a swimming p o o l , a 30 a c r e g o l f c o u r s e and t e n n i s c o u r t s l o c a t e d on
approximately 100 a c r e s of l a n d i n Manheim Township, L a n c a s t e r County, Pennsylvania.
The purpose of my examination and s t u d y i s t o v a l u e t h e premises i n t h e c u r r e n t
market .
I n a r r i v i n g a t my v a l u a t i o n , I have among o t h e r f a c t o r s c o n s i d e r e d t h e following:
(1)
Location Trends. The V i l l a g e of Olde Hickory and t h e surrounding developing

a r e a i s an a t t r a c t i v e r e s i d e n t i a l d i s t r i c t . I am o f t h e o p i n i o n t h a t i t
w i l l maintain i t s p r e s e n t s t a t u s o r g r a d u l l y improve.
(2)
I e s t i m a t e t h e e s t a b l i s h e d Net Income imputable t o a l l t h e f r a c t i o n s of t h e

V i l l a g e of Olde Hickory a t $1,324,333 p e r annum.
(3)
C a p i t a l i z e d Value f o r both income flows which computes a t $13,000,000

per annum. T h i s i s p r e d i c a t e d upon t h e t o t a l e a r n i n g s o f $1,324.333 p e r
annum c a p i t a l i z e d a t an o v e r a l l r a t e of 10.14%.
I n my o p i n i o n , t h e market v a l u e of t h e premises i n t h e c u r r e n t market is:

THIRTEEN MILLION DOLLARS
I n l i g h t of t h e s e c o n s i d e r a t i o n s and o t h e r f a c t o r s s e t f o r t h i n my a p p r a i s a l r e p o r t
which f o l l o w s , I have a r r i v e d a t t h e aforementioned v a l u a t i o n .
Respectfully submitted,
Mary L. C l i n t o n
president
INCOME APPROACH
VILLAGE OF OLDE HICKORY:
DEFINITION: T h i s approach d e a l s with t h e p r e s e n t worth and f u t u r e p o t e n t i a l

b e n e f i t s of t h e p r o p e r t y . This i s g e n e r a l l y measured by t h e n e t income which
a f u l l y informed person i s warranted i n assuming t h e p r o p e r t y w i l l produce d u r i n g
t h e remaining u s e f u l l i f e . A f t e r comparison with investments of s i m i l a r t y p e and
c l a s s , t h e n e t income i s c a p i t a l i z e d i n t o a value e s t i m a t e .
The g r o s s and n e t income g e n e r a t e d by t h e c u r r e n t r e n t s f o r t h e y e a r 1985 a r e
d i v i d e d as f o l l o w s :
Residential
Commercial Income
Golf & Swimming
Annual Gross Income
Annual Net Income
$2,224,766
$1,072,465
275,714
204,182
93,310
(11,870)
Racquet Club
Total
(Expense r a t i o i s 52% of g r o s s ( i n c l u d i n g vacancy & bad debt allowance).
The r e s i d e n t i a l income o f $2,224,766 p e r annum averages $89.31 p e r room p e r month.

The l e a s e s have a 1 y e a r term with t e n a n t s absorbing a l l o f t h e i r e l e c t r i c a l charges
which i n c l u d e s e l e c t r i c h e a t i n g , a i r c o n d i t i o n i n g and h o t w a t e r .
Management e x p e c t s a t u r n o v e r of 30% t o 35% i n t h e r e s i d e n t i a l u n i t s d u r i n g 1985.
This would i n c r e a s e t h e r e n t r o l l m a t e r i a l l y a s shown on t h e following s c h e d u l e o f
Monthly Rates e f f e c t i v e September 1, 1985.
A 3% allowance f o r vacancy and bad d e b t s was considered a p p r o p r i a t e due t o t h e f a c t

t h a t t h e r e i s g e n e r a l l y a w a i t i n g l i s t f o r new c o n t r a c t s .
COMMERCIAL RENTALS:
Rentals f o r t h e shopping c e n t e r , t h e f o u r o f f i c e s i n t h e former s t o n e farmhouse and
3 r e t a i l and o f f i c e u n i t s i n t h e Boyd/Wilson Building aggregates $275,714 p e r annum
( s e e schedule of b a s e r e n t a l s ) . A 5% vacancy and bad debt d e d u c t i o n appears a p p r o p r i
based on p a s t h i s t o r i c a l r e c o r d s .
The r e n t a l o f f i c e ( U n i t 6 ) does n o t c o n t r i b u t e any r e n t . I have a p p l i e d a r e n t a l o f
$6.75 p e r s q . i t . which i s i n t h e lower h a l f of t h e r e n t r o l l range which computes
I
1
t o $9,072 annually.
The income from t h e Golf and Swim Club which we have taken from t h e l a s t s t a t e m e n t
of e a r n i n g s i s $93,310 p e r annum and m i s c e l l a e o u s income approximates $5,000 p e r y e a r
x P P a S a 1 ~ S S O C S . ~ S 430 WEST
CHESTNUT
STREET, IANCASTER, PENNSYLVANIA 116m
INCOME APPROACH
REAL ESTATE TAXES CONTINUED:
Mills
County
February 28th F i s c a l Year:
.5
Township
February 28th F i s c a l Year:
4.5
School D i s t r i c t
June 30th F i s c a l Year:
TOTAL :
,
! !
35.75
45.25
i i.
See Summary o f Assessed Valuations f o r The V i l l a g e of Olde Hickory Complex.

Net Income imputable t o t h e premises based upon t h e c u r r e n t r a t e s i s e s t i m a t e d
a t $1,324,333 per annum.
& m S i s r l assoeiat~s430 WEST CHES&UT STREET, LANCASTER, PENNSYLVANIA 178m
COST APPROACH
DEFINITION: The c o s t approach t o value c o n s i d e r s t h e value of t h e s u b j e c t l a n d

as i f i t i s v a c a n t , t o t h i s f i g u r e i s then added t h e d e p r e c i a t e d replacement c o s t
o f t h e improvements on t h e p r o p e r t y . The f i r s t s t e p i n t h i s approach i s t o e s t i m a t e
b a r e l a n d v a l u e . The n e x t s t e p i s t o e s t i m a t e t h e replacement c o s t of t h e s u b j e c t
improvements. The Marshall Swift V a l u a t i o n S e r v i c e i s used f o r t h i s purpose.
D e p r e c i a t i o n i s determined and e s t i m a t e d and then deducted from t h e c o s t new t o
a r r i v e a t a d e p r e c i a t e d accrued d e p r e c i a t i o n v a l u e . To t h i s f i g u r e t h e v a l u e o f
t h e l a n d a s i f unimproved i s then added. The d e p r e c i a t i o n deductions were f o r
p h y s i c a l wear and t e a r .
1.
The 54 townhouse b u i l d i n g s , Nos. 1 t o 54 have been valued on t h e c o s t b a s i s

o f $42.00 p e r s q . f t . o f t h e b u i l d i n g s which were e r e c t e d i n 1969 and 1970.
This t o t a l s $15,953,280. A 30% p h y s i c a l d e p r e c i a t i o n was deducted t o r e f l e c t
t h e wear and t e a r and a 15% f u n c t i o n a l obsolescence deduction r e p r e s e n t s t h e
s t r u c t u r a l age a s w e l l a s f u n c t i o n a l obsolescence items such a s f i r e p l a c e s
and f l o o r p l a n s .
The d e p r e c i a t e d p r e s e n t worth of t h e townhouses i s $12,170,430.
2.
B u i l d i n g Nos. 55 t o 57 would be t h e Wedgewood Buildings e r e c t e d i n 1971 have

a n e s t i m a t e d c o s t of $45.00 p e r s q . f t . o r $4,175,550. A 30% p h y s i c a l d e p r e c i a t i o n was deducted t o r e f l e c t t h e wear and t e a r and a 15% f u n c t i o n a l o b s o l e s c e n c e
d e d u c t i o n r e p r e s e n t s t h e s t r u c t u r e age a s w e l l a s f u n c t i o n a l obsolescence i t e m s
such a s f i r e p l a c e s and f l o o r p l a n .
3.
The shopping c e n t e r which h a s a g r o s s a r e a of 23,051 s q . f t . I have valued a t

$44.00 p e r s q . f t . f o r a t o t a l o f $1,014,244. This s t r u c t u r e was e r e c t e d i n
1972 and t h e d e p r e c i a t i o n deducted r e p r e s e n t e d 20% p h y s i c a l wear and t e a r and
10% f u n c t i o n a l obsolescence w i t h regard t o f l o o r p l a n and f i r e p l a c e s a s w e l l a s
t h e s t r u c t u r a l components o f t h e b u i l d i n g .
4.
I n J u l y 1974, t h e Olde Hickory Racquet Club was e r e c t e d which h a s a g r o s s s q u a r e

f o o t a g e of 70,569 s q . f t . Based on t h e c u r r e n t c o n s t r u c t i o n i n d e x e s , t h e Racquet
Club and a l l i e d f a c i l i t i e s c o s t $38.00 p e r s q . f t . o r $2,681,622. The d e p r e c i a t i c
deducted from t h i s s t r u c t u r e was 25% f o r p h y s i c a l wear and t e a r and 10% t h a t
r e f l e c t s t h e o b s o l e t e f l o o r p l a n , hallway d e s i g n and s i m i l a r a m e n i t i e s .
5.
The Boyd Wilson b u i l d i n g has j u s t been e r e c t e d i n 1984 and c o n t a i n s a g r o s s

s q u a r e footage o f 12,240 s q . f t . a t an e s t i m a t e d c o s t o f $45.00 p e r s q . f t . T h i s
I have d e p r e c i a t e d t h i s s t r u c t u r e a t a nominal f i g u r e of 5%
t o t a l s $550,800.
t o r e f l e c t minimal wear and t e a r .
The o t h e r b u i l d i n g s have s i m i l a r deductions based on t h e i r age and f u n c t i o n a l u t i l i t y ,

See a t t a c h e d suarmary.
&pdiSd
a S S 0 ~ l a e S430 WEST CHES~NUTSTREET, LANCASTER. PENNSYLYANtA 178m
COST APPROACH
SUMMATION
REPRODUCTION COSTS:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
V i l l a g e of Olde Hickory
V i l l a g e Square ( S t r i p Shop)
Olde Hickory Racquet Club
Boyd/Wilson Building
Community Center (Barn)
Stone Farm House
Pool F a c i l i t i e s
Golf Course & Shed
Tennis Courts
S i t e Improvements
Tot a1
DEPRECIATION & OBSOLESCENCE:

Physical
Bldg. D e p r e c i a t i o n
Functional
Obsolescence
Economic
Obsolescence
Total
-
-0-0-0-0-0-0-
(1)
30%
15%
(2)
20 %
10%
(3)
25%
10%
(4)
5%
-0(5)
30 %
20%
(6)
25%
15%
(7)
35%
10%
(8)
5%
-0(9)
40 %
-0(10)
35%
-0T o t a l Accrued D e p r e c i a t i o n
-020%
-0-0-
DEPRECIATED COST OF THE IMPROVEMENTS:
$15,908,414
ESTIMATED LAND VALUE:

~ e s i d e n t i a lAcreage: 86.88
Shopping Center:
4.591
Racquet Club:
4.279
Boyd/Wilson Building: 4.25
T o t a l Land Value
acres
acres
acres
acres
= $1,867,920
=
330,552
@ $72,000 p e r a c r e =
308,088
@ $21,500 p e r a c r e
@ $72,000 p e r a c r e
@ $72,000 p e r a c r e =
TOTAL ESTIMATED VALUE BY THE COST APPROACH:
306 000
$2,812,560
2,812,560
$18,720,974
Rounded $18,700,000
I 1:
&~pmsal assocIaIS. 430 WEST CHESTNUT STREET. UNCASTER, PENNSYLVANIA l7bd
WEDGEWOOD
Layout of Each Building
1st - 3rd Floors
4/4's, 415 with 2 Baths, Each Floor

TOTALS
Per Building
3 Buildings
24
72
Rooms
108
324
Baths
36
108
Balconies
24
72
Apartments
Parking Spaces
97
Carports
32
TOWNHOUSES
Rooms
House
Type
24
-
Baths
Fireplaces
Each Total Each Total Each Total

-
Courtyards
Burgess
246
2.5
102.5
41
Burgess
120
2.5
50.0
20
20
Landis
260
1.5
78 .O
52
Landis
95
1.5
28.5
19
19
Haymarket
270
2.5
112.5
Haymarket
36
2.5
15.0
Passmore
605
1.5
181.5
Passmore
120
1,752
1.5
36.0
-
328
604.0
132
24
69
TOTALS
Units
,
,
,
,
i i.~.
,-
,
,,
72
328
400
Baths
324
1,752
2,076
604
133
714
157
108
Ftreplaces
24
co~rt~ards/Balconies
72
65
137
, .
Wedgewood
Townhouses
TOTALS :
Rooms
,
9
,,
~ p p ~ i s aa sls o c i a ~ s430 WEST CHESTNUT STREET, UNCASTUI, PENNSYLVANIA 17603
THE VILLAGE OF OLDE HICKORY

TOWNHOUSES:
The Burgess House which i s a luxury type house c o n s i s t s o f 61 b a s i c type h o u s e s ,
some w i t h c o u r t y a r d s and some without c o u r t y a r d s . The e x t e r i o r s a r e b r i c k and
s t o n e with some c o n c r e t e p a t i o s on t h e grade l e v e l . F e n e s t r a t i o n i s wood double
hung w i t h aluminum s t o r m windows and wood s h u t t e r s . Entrance doors a r e s o l i d
c o l o n i a l design and roos a r e p i t c h e d a s p h a l t s h i n g l e with g u t t e r s and l e a d e r s .
The Burgess u n i t s and t h e Haymarket u n i t s a l l have 6 rooms with 2.5 b a t h s . The
f l o o r s a r e c a r p e t e d and t h e d i n i n g a r e a s a r e provided with a c h a n d e l i e r . Walls
and c e i l i n g s a r e of s h e e t r o c k c o n s t r u c t i o n . T y p i c a l grade f l o o r c o n t a i n s a
l i v i n g room and d i n i n g a r e a , c o a t c l o s e t i n t h e f o y e r with composition f l o o r i n g
and a k i t c h e n with s i m i l a r f l o o r i n g and s t a i n l e s s s t e e l s i n k w i t h formica countert o p s , and a General E l e c t r i c 4 b u r n e r range, General E l e c t r i c dishwasher, and a
General E l e c t r i c c l o t h e s washer and d r y e r . The k i t c h e n s a l s o have wood cupboards and General E l e c t r i c r e f r i g e r a t o r s . The powder room has a composition
t i l e f l o o r i n g , enameled i r o n washbasin w i t h formica t o p , low tank t o i l e t , and
medicine c a b i n e t . Carpeted wood s t a i r s with wrought i r o n r a i l i n g l e a d s t o t h e
2nd f l o o r .
The 2nd f l o o r i s c a r p e t e d throughout and c l o s e t space i s e x c e l l e n t . The r e a r
bedroom h a s a double wardrobe c l o s e t with louvered metal doors. There i s a l s o a
s i n g l e louvered h a l l c l o s e t and a p r i v a t e bathroom with composition t i l e f l o o r i n g ,
t i l e jumbers and b u i l t - i n tub w i t h shower, low tank t o i l e t , enameled i r o n washb a s i n with formica t o p and s l i d i n g medicine c a b i n e t . The f r o n t h a s two bedrooms,
one s m a l l and one s l i g h t l y l a r g e r . Wardrobe c l o s e t s a r e i n each bedroom. The
r e a r bedroom a l s o h a s a s e p a r a t e washbasin w i t h medicine c a b i n e t . The e n t i r e
house i s h e a t e d and a i r c o n d i t i o n e d by e l e c t r i c i t y , with a u n i t of General E l e c t r i c
manufacture l o c a t e d i n a shed a d j o i n i n g t h e r e a r t e r r a c e . Heated and c h i l l e d a i r
a r e d i s t r i b u t e d by d u c t and f o r c e d a i r c i r c u l a t i o n . There a r e r e g u l a r 3 bedroom
s i x roomhouses and t h o s e w i t h t h e f i r e p l a c e which a r e d e s c r i b e d a s a luxury u n i t .
A 1 1 houses have a f o l d i n g door i n second f l o o r h a l l c e i l i n g s which l e a d t o t h e
a t t i c . The a t t i c i s h e a v i l y i n s u l a t e d and can be used f o r s t o r a g e purposes where
t h e roof beams a r e covered. Water p i p i n g i s copper throughout.
I understand t h a t
t h e 3 bedroom Deluxe Burgess Houses a r e u s u a l l y on t h e end of a b u i l d i n g . There
a r e 54 b u i l d i n g s c o n t a i n i n g t h e 328 townhouses which have 1,752 rooms, 133 f i r e p l a c e s
and 65 c o u r t y a r d s . The townhouses a r e i n S e c t i o n s I, II and 111 of The V i l l a g e o f
Olde Hickory.
WEDGEWOOD SECTION:
T h i s p a r c e l h a s an a r e a of 5.9134 a c r e s . The improvements c o n s i s t s o f t h r e e 3.0
s t o r y medium r i s e apartment b u i l d i n g s which a r e of non-fireproof c o n s t r u c t i o n w i t h
b r i c k e l e v a t i o n s and c e d a r mansards a t t h e t h i r d f l o o r roof l e v e l . Each apartment
has an enclosed wooden s c r e e n e d porch, some o f which have g l a s s e n c l o s u r e s . The
s t r u c t u r e s were e r e c t e d by t h e C l a b e l l Company, according t o p l a n s by W . F . L a n d i s .
The r o o f s I understand a r e a l l f l a t r u b e r o i d . Windows a r e wood double hung and t h e
e n t r a n c e t o each of t h e t h r e e b u i l d i n g s c o n s i s t of a c o l o n i a l wood type a r c h i t r a v e
with columns and two p l a t e g l a z e d wood doors a t b r i c k s t o o p . V e s t i b u l e s o r lobby
have b r i c k f l o o r i n g , p l a s t e r w a l l s w i t h e l e c t r i c a l w a l l b r a c k e t s and 3.0 s t o r i e s i n
h e i g h t w i t h b a l c o n i e s a t t h e 2nd and t h i r d f l o o r s w i t h wrought i r o n r a i l i n g s . The
ceilings are plaster.
Each v e s t i b u l e c o n t a i n s 28 approved m a i l r e c e p t i c a l s w i t h
push b u t t o n s . Only 24 a r e used. There i s one Dover s e l f - s e r v i c e e l e v a t o r of
1,500 l b s . c a p a c i t y w i t h paneled cab which t r a v e l s from t h e 1 s t f l o o r t o t h e 3rd f l o o
~ p p d i s a la s s o c i a ~ s430 WEST
CHESTNUT
STREET, UNCASTER, PENNSYLVANIA 178m
THIS VALUATION IS CONTINGENT UPON THE FOLLOWING

UNDERLYING ASSUMPTIONS AND CONDITIONS:
This appraisal. is to be used in whole and not in part. No part of
it shall be used in conjunction with any other apprai'sal.
Possession of this report or a copy thereof, does not carry with
it the rights of publication nor may it be used for any purpose by
any but the client for whom it was made, without the consent of
the appraiser and the client.
The appraiser is not required to give testimony or attendance in
court by reason of this appraisal, unless arrangements have been
previously made therefore.
This appraisal covers the property as described in this report and
the areas and dimensions as shown herein are assumed to be
correct. The appraiser has made no survey of the property and
assumes no responsibility in connection with such matters. Any
sketch or identified survey of this property included in this
report are only for the purpose of assisting the reader to
visualize the property.
The information furnished in this report by others is believed to
be reliable, but no responsibility for its accuracy is assumed.
(
The appraiser assumes no responsibility for matters of a 1-egal
nature effecting this property or the title thereto, nor does the
appraiser render any opinion as to the title which is assumed to
be good and marketable. The property is appraised as though under
reasonable ownership and competent management.
Any distribution of the valuation in this report between land and
improvements applies o n l y under the existing program o f
utilization. The separate valuation for land and building must
not be used in conjunction with any other appraisal and are
invalid if so used.
The appraiser assumes that there is no hidden or unapparent
conditions of the property subsoil, or structures which would
render it more or less valuable.
The appraiser assumed no
responsibility for such conditions or for engineering which might
be required to discover such factors.
The appraiser's duties pursuant to his employment to make the
appraisal are completed upon delivery and acceptance of the
appraisal report. All conclusions set forth in the appraisal
report were prepared by the appraiser whose signature appears on
the appraisal report. No change of any item in the appraisal
report shall be made by anyone other than the appraiser, and the 1
appraiser shall have no responsibility for any such unauthorized
change.
&tpdiSd
.ssOC~.~S
430 WEST C H E S ~ ~ USTRE=,

T
LANCASTER, PENNSYLVANIA I78m
I h e r e b y c e r t i f y t h a t I h a v e no p a s t , p r e s e n t o r c o n t e m p l a t e d
f u t u r e , u n d i s c l o s e d i n t e r e s t i n t h e p r o p e r t y a p p r a i s e d h e r e i n and
n e i t h e r t h e employment t o make t h e a p p r a i s a l nor t h e compensation
i s c o n t i n g e n t upon t h e a p p r a i s e d v a l u e of t h e p r o p e r t y .
R e s p e c t f u l l y s u b itt
Mary L. C l i n t o n
President
APPRAISAL ASSOCIATES.
&p~tS.l
d
INC.
a ~ S 0 ~ l .430
e ~WEST CHES~NUTSTREET, L4NCASTER. PENNSYLVANIA ,7603
RESUME OF MARY L. CLINTON

1968
1971
1971 to Present
1978 to Present
1982 to Present
APPRAISAL EDUCATION
Licenced Real Estate Salesperson, State

of Pennsylvania
Licenced Real Estate Broker, State of
Pennsylvania
President, Appraisal Associates, Inc.
Vice-president, Hershey/Clinton &
Associates
REAL ESTATE COURSES COMPLETED:

1.
2.
3.
4.
5.
6.
7.
8.
Residential Appraising
Commercial Appraising
New Construction
Real Estate Law
Real Estate Financing
Real Estate Sales
Right-of-way
Real Estate Theory annd Practice
APPRAISAL COURSES COMPLETEDA.1 .R.E.A.
COURSES:
1. I-A Basic Appraisal Principals, Methods and Techniques

2. I-B Capitalization Theory and Techniques
3. I1 Urban Properties
4. Standards of Professional Practices
5. Valuation Analysis and Report Writing
6. Capitalization Theory and Techniques Part I1 (refresher)
SEMINARS:
1. Attended the Residential Appraisal Seminar conducted by
A.I.R.E.A.
2. Attended the Solar Xorkshop Seminar for the Financial
Community sponsored by H U.D.
3. Attended Valuation of Matrimonial Assets Under Equitable
Distribution conducted by A.S.A.
4. Attended Introduction to Machinery and Equipment
Valuation conducted by A.I.R.E.A.
I
I
xpp&iSal
.sscW~~US
430 WEST CHESTNUT STREET,LANCASTER,PENNSILVAN1A 178m
REAL ESTATE ACTIVITIES:
President of the Greater Lancaster Board of Realtors

Director of the Greater Lancaster Board of Realtors
Past President of the Lancaster Chapter of Women's Council
Member of the National Associate of Realtors
Member of the Pennsylvania Association of Realtors
Honored at 1977 Leaders Luncheon by the Lancaster YWCA
Arbitrator for the National Academy of Conciliators Honored
Recipient of the Realtor of Year Award - 1981
Recipient of Dorothy M. Slaugh Award - 1981
DESIGNATIONS AND AFFILIATIONS
,,
.
,
ASA
!,
!T
.,
SCV
Y-1)
CRP
CRV
RMU
ICA
MA1
,,
!
I
.,
F:
.,
I .
Senior Member of the International Organization Real

Estate Appraiser
Candidate of the American Institute of Real Estate
Appraiser #M 81 1577
Candidate of the American Society of Appraisers
International Institute of Values
International Institute of Valuers
Senior Certified Valuer
National Association of Certified Real Property
Appraiser
Certified Real Property Appraiser
National Association of Review Appraisers
Certified Review Appraiser
National Association of Review Appraisers and Mortgage
Underwriters
CIVIC ACTIVITIES:
Member of Upper Leacock Zoning Board
Director of the Soroptimist International of Lancaster
Director of the Ressler's Mill Foundation
Life Member of the Lancaster Osteopathic Hospital Blood Bank
Member of Leola United Methodist Church
Member of Upper Leacock Women's Club
Kppl~is.1 associaes 430 WEST C
~ STREET,
~ TUNCASTER,
k ~ PENNSYLVANIA 17603
PARTIAL LIST OF FINANCIAL INSTITUTION CLIENTS

Bank of Lancaster County
Commonwealth National Bank
Dauphin Deposit Bank
Farmers First Bank
Fulton Bank
Hamilton Bank
New Holland Farmers National Bank
First Federal Savings & Loan
Heritage Savings Association
Lancaster Federal Savings & Loan
Parent Federal Savings Bank
State Capital Savings & Loan
York Federal Savings & Loan
Bell Savings & Loan Association
Brokers Mortgage Service
Central Mortgage Company
Chase Home Mortgage Company
Clarion Mortgage Company
Colonial Mortgage Service Company
Horst Financial Services
Jersey Mortgage Company
Lomas and Nettleton
Meridan Mortgage Corporation
Northwest Mortgage Company
The Kissell Company
,
&p&isnl
associaf5s 430 WEST
CHESTNUTSTREET, IANCASTER, PENNSYLVANIA 1 7 a
PARTIAL LIST OF APPRAISAL AND CONSULTANT CLIENTS

MARY L. CLINTON
Armstrong World Industries
Cutler-Hammer
R.R. Donnelly and Sons Company
DuPont Company
Employ ee Transfer Corporation
Executrans, Inc.
Homequity
Howmet Aluminum Corporation
Investors Relocation Group, Inc.
Merrill Lynch Relocation Management, Inc
Oscar Mayer and Company
Packaging Corporation of America
Philadelphia Electric Company
Relocation Realty Services Corporation
Relocation Resources
TransAmerica Relocation Services, Inc.
Westvaco
Avco Financial Services
Dial Consumer Discount Company
Federal Housing Administration
Federal National Mortgage Association
Lenders Services, Inc.
Record Data of Pennsylvania, Inc.
Veterans Administration
--
ICHARGEISI.
I DATE OF
CHAR,
- .
U r r l ~ w i u l Use of k n p u t e r (13j, T h e f t
O N a r n i r i a l Bail
$
?0.0C0.00
'[
DATE
AND TIME
LOCATION
I1
JUOGE O R
for
ISSUING
AUTHORITY
i+urray R.
THIS
BONO
AND
IS
INCLUDING
FINAL
y the defendant,
&&-hard L. ,Qcset,
D, J.
c59(
FOR THE ENTIRE
DISPOSITION
OF ANY
OISCHARGE THE ABOVE-NAME0 DEFENDANT FROM CUSTODY If

DETAINEO F O R NO OTHER CAUSE THAN. THE
. ABOVE STATED.
Given under m y hand a n d the'official Seal o f this Court.
PROCEEDINGS
PETITION
W R I T OF C E R T I O R A R I OR APPEAL T I M E L Y F I L E D
SUPREME COURT OF THE U N I T E D STATES.
Bring Cash Bail Receipt t o Clerk o f Court.
A N D F I N A L DISPOSITION OF T H E CASE
this
FOR
IN
T
. -?
;
..
THE
. .
.
9ch
'
4n
O n behalf o f the defendant by:
Refund o f all other types o f bail w i l l be made p r o m p t l y aftel

2 0 days following final disposition. (Pa.R.Cr.P. 4 0 1 5 ( a I l
Mrton, M s t r i c t Justice
VALID
UNTIL FULL
Other
l[.i<=nse
Refund o f cash bail w i l l be made w i t h i n 2 0 days afrer
final disposition. 1Pa.R.Cr.P. 4 0 1 5 ( b ) I
A P P E A R A N C E OR B A I L B O N D
176i
I hereby c e r t i f y t h a t sufficient bail has been entered

p
SECURITY O R SURETY ( I F A N Y )
a s u r e t v Company
professional Bondsman
ORealtv
Cother
4 ' ~ n c ~ s c r r?A.
E D Xk iEiE5%%4 J W SbT%'iCE CU.

Alfred0 %rchf0, 529 Cherry S t . ,
r.Vw-e 6 .4ddrrsr o f S u r e r ~ 1Reading, PA
14602
(attach addendum, i f necessary)
2205
-
a Detention Center
TO:
i;:-
N E X T COURT ACTION
Ldilians of Release (aside fmm appearing a1 court when required:)
S r ~ t .14, 1487 10:130
11
tjj-
.;
a
..
L.,.
,1
Septcsber
dgy o f
-- .
..
,:&
(Clerk ufCourr or Isruing Aurl8orityl
'
, 1:
I'
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. .:
. .. .
-------
WE, THE UNDERSIGNED, defendant and surety. our successors, heirs and assigns, are j o i n t l y and severally b o u n d t o pay t o the
20,COO-GCI
M a c y tbouslnd-dollars ($
).
commonwealth o f Pennsylvania the sum o f
SEE REVERSE SIDE FOR B A l L COND~T~ONS
CERTIFICATION OF COUNTER INDEMNITY AND PREMIUM
(Applicable Only When Surety Is A Corpor:

Indiana
turnberman's Insurance Co.
1.400.00
11 3 hereby certify that the amount paid by said Principal to said Surety for bail in the above matter is S
>:
S*d&
J. Czterbone
,Ptincipal, and
and that no further sum or sums i s l a be paid therefore by the said Principal or anyone on his behalf.
We lurther certify that said Principal has given to said Surety counter indemnity consisting of
/rur&
of the value of 5
and no further counter indemnity is to be given the said Surety
as followr:
\I
ir
- .
' .
.j
#'
We further certily that there are no judgments against the said corporate surety outstanding and'unpid f a r d p e r i p d a f w h i r t y days from thedat
.
e n l ~ o l s u c hjudgment except thorein which apetition to openorvacate the judgment hasbeenfileda"dkmainrundirpbred of:
Oated:
Se3tenbe~
!!
. 1 9 8 7
/PrincipsU
'
\ lSureryl ;. / ,.
M U S T BE SIGNED I N PERSON
B Y T H E APPROVED AGENT
1
i
(!
$GN4;iREO
IA C K N O W L E D G E T H A T I A M L E G A L L Y RESPONSIBLE F O R
THE FULL A M Q U ~ T OF THE BAIL.
The followinga~knowledgementis also applicable

if Percentage Cash Bail is used.
: THIS B O NSIGNED
~
ON September
9, 1 9 3
at
iiev Holland.
PENNSYLVANIA.
Signature of Surety ( M y v ~ o n d s m a n .Bail Agency. o r private

indiuidual or organration). Excepb when defendanr is releared on his
'
.
Sursry No. or Proferrional Bondrmon License No. & E r p i r n t i c
I r * In case of corporate surew hail. Power of A nornev muzr
n race nf P n r r ~ n r s n or l r h
R=il r r
n,--;-=,
O-;,
ST. JOSEPH HOSPITAL AND HEALTH CARE CENTER

LANCASTER,
PENNSYLVANIA
INPATIENT MENTAL HEALTI1 UNIT

P A T I E N T
G U I D E
T h e following guidelines have been established in order that

a s a f e and congenial environment can be provided for all patients
within the Inpatient Mental Health Unit.

and
if y o u h a v e ' q u e s t i o n s ,
Please read the guidelines
ask t h e staff t o respond t o y o u r
questions.
I.
ADMISSION PROCEDURE
For safety reasons, the staff will. check your personal
belongings o n admission and will check other packages brought
into the unit thereafter.
Any sharp objects, medications,
glassware, or electrical appliances will be kept within a bin
at t h e n u r s i n g station.
Any l u g g a g e and personal i t e m s
should be labeled with your name.
Any valuables or money should be sent home or placed
within t h e hospital safe. You are encouraged t o keep no more
than $10.00 on the unit. Each person is responsible for his/
her own belongings.
p;Y
Visitors may be received during the following hours:

Monday, ~ e d n e s d a y , Friday
7:00 p.m.
8:00 p.m.
Saturday and Sunday

T h e n u m b e r o f v i s i t o r s should be limited t o 4 p e r
patient at any one time. Children under the age of 13 may be
a l l o w e d t o v i s i t w i t h patients in the Atrium and at t h e
discretion of the charge nurse.
Visitation is permitted in the Atrium, South Unit, or
West Unit.
For patients with ground privileges, visitation
i s permitted within the Hob-Nob. Acute care patients may be
v i s i t e d o n t h e A c u t e C a r e Unit.
W h e n a p p r o v e d by t h e
patient's
psychiatrist and when accompanied by a staff
member, Ac
are Unit patients may receive visitors in t h e
Atrium.
111.
GROUND PRIVILEGES
Ground privileges allow a patient to leave the Inpatient
Unit and visit: ( 1 ) the Hob-Nob, ( 2 ) the Gift Shop, and (3)
the Chapel.' Visits to the hospital Library must be approved
by the patient's treatment team.
G r o u n d P r i v i l e g e s are each day during the following

hours:
NOTE:
T h e visitation and ground privileges a r e i n effect

o n l y during t h o s e t i m e s when t h e patient(s) a r e not
i n treatment activities.
P a t i e n t s a r e expected t o
conduct themselves and their behaviors based o n
a c c e p t a b l e socialization standards.
A l l p a t L e n t s are a s k e d t o s i g n o u t at t h e n u r s i n g
s t a t i o n when leaving the Unit.
IV.
ATRIUM H O U R S
F o r a l l p a t i e n t s e x c e p t w h e n c o n t r a i n d i c a t e d by t h e
patient's psychiatrist and treatment team t h e h o u r s a r e 7:30
a.m.
9:00 p.m. daily. No'smoking i s allowed i n t h e Atrium.
L i g h t snacks and beverages are allowed in the Atrium for
visitors and patients.
Alcohol and other chemicals are
strictly forbidden.
P a t i e n t s and. v i s i t o r s a r e a s k e d t o
d i s p o s e o f cups, napkins, etc.
v.
PHONE C A L L S
P h o n e calls may b e m a d e or received any t i m e during t h e

w e e k between t h e h o u r s o f 7:00 a.m. and 11:30 p.m. a s long a s
they do not interfere with o t h e r activities. Each p h o n e call
s h o u l d b e limited t o 10 m i n u t e s s o t h a t other patients m a y
make and receive calls.
A c c e p t a b l e t e l e p h o n e behavior is expected a s a courtesy
t o o t h e r s and a s a demonstration o f one's
abilfty t o
c o m m u n i c a t e i n a r e s p o n s i b l e manner.
VI.
SMOKING
T h e hospital discourages smoking in the interest of
better h e a l t h care. S m o k i n g is permitted only i n t h e multip u r p o s e rooms o n t h e South and West Units and in the
d e s i g n a t e d s m o k i n g a r e a o n t h e A c u t e C a r e Unit.
Smoking is
p e r m i t t e d in t h e Hob-Nob if ground privileges a r e granted.
Visitors m a y s m o k e only in t h e Hob-Nob.
No s m o k i n g u n d e r t h e a g e o f 16 i s allowed u n l e s s t h e
s t a f f r e c e i v e s permission f r o m t h e parents.
No c i g a r e t t e
lighters o r matches a r e allowed t o be carried o r used o n t h e
Units. P l e a s e u s e a s h t r a y s
not papercups o r wastecans.
VII
PASSES
T h e r a p e u t i c passes a r e approved by t h e t r e a t m e n t team.
p a s s e s a r e arranged o n a n individual basis. ~ 1 patients
1
m u s t be Picked UP and returned by approved arrangements m a d e
with t h e treatment team.
P a t i e n t s a r e e x p e c t e d t o a t t e n d a n d 9otf n a1 1
designed by the t r e a e
e n ot s- a
a t t e n d t h E m T s a n d Thursday
e v e n i n g c o m m u n i t y m e e t i n g u n l e s s e x c u s e d by t h e t r e a t m e n t
team.
P a t i e n t s a r e a s k e d t o be d r e s s e d i n s t r e e t c l o t h i n g and
ready t o begin t h e day's a c t i v i t i e s a f t e r h r p a k f a q t ,
P a t i e n t s a r e e x p e c t e d t o b a t h e o r shower a t l e a s t e v e r y
o t h e r day.
P a t i e n t s a r e asked t o a s s i s t i n keeping t h e public a r e a s
c l e a n by p u t t i n g c u p s , t r a s h , a n d o t h e r d i s c a r d a b l e items
i n t o t h e wastecans.
E a c h p a t i e n t i s r e q u i r e d t o b e h a v e i n a manner t h a t is
c o u r t e o u s t o o t h e r s and t h e s t a f f .
The manner o f d r e s s
s h o u l d n o t b e o f f e n s i v e b u t show r e s p e c t f o r o t h e r members o f
t h e community.
Laundry f a c i l i t i e s a r e provided s o t h a t each p a t i e n t can
have c l e a n c l o t h i n g .
XIII.
TREATMENT PLANS
~ a t i e n t s h a l l have a w r i t t e n , i n d i v i d u a l i z e d
,Each
t r e a t m e n t p l a n t n a t i s b a s e d on t h e a s s e s s m e n t s o f h i d h e r
c l i n i c a l neeas.
T h i s p l a n s h a l l b e d e v e l o p e d w i t h i n 72 h o u r s
o f t h e p a t i e n t ' s admission.
When a p p r o p r i a t e , t h e p a t i e n t
s h a l l p a r t i c i p a t e i n t h e development o f h i d h e r t r e a t m e n t
plan.
Any c o n c e r n s o r d i s a g r e e m e n t s r e g a r d i n g t r e a t m e n t
should be handled on an informal b a s i s before u t i l i z i n g a
formal grievance procedure.
0
XIV.
PATIENT BILL OF RIGHTS AND G R I E V A N C E PROCEDURE

E a c h p a t i e n t w i l l r e c e i v e a c o p y o f t h e P a t i e n t B i l l of
R i g h t s w h i c h i s Addendum I t o t h e P a t i e n t G u i d e a n d i s
a t t a c h e d t o t h e P a t i e n t Guide.
The P a t i e n t B i l l o f R i g h t s
p r o v i d e s f o r t h e p a t i e n t i n f o r m a t i o n a b o u t your r i g h t s and
p r i v i l e g e s while a p a t i e n t a t S t . Joseph Hospital.
The G r i e v a n c e and Appeal Procedure s h o u l d be handled o n
an informal basis with t h e s t a f f if possible.
Any p a t i e n t s ,
o r t h o s e h e l p i n g t h e p a t i e n t , may i n i t i a t e a c o m p l a i n t
o r a l l y or i n writing
and t h e complaint w i l l be handled
t h r o u g h t h e t r e a t m e n t team l e a d e r o r t h e Program Manager o f
t h e I n p a t i e n t M e n t a l H e a l t h S e r v i c e w i t h i n 48 h o u r s o f
T h i s d e c i s i o n may b e a p p e a l e d
r e c e i p t of t h e c o m p l a i n t .
w i t h i n 10 d a y s t o t h e M e d i c a l D i r e c t o r o f M e n t a l H e a l U
S e r v i c e s o r t h e Directo-r o f M e n t a l H d t h / S u b s t a n c e w e
Services.
l f a n a p p e a l is s t i l l r e q u e s t e d , t h e g r i e v a n c e
must be s u b m i t t e d t o t h e P r e s i d e n t o f S t . Joseph H o s p i t a l and
t o t h e C o u n t v MH/MR A d m i n i s t r a t o r .
VIII.
MEALS/FOOD
Approximate Hours:
Breakfast
Lunch
Dinner
7:15 a.m.
12:OO noon
5 : 1 5 p.m.
You are responsible to be present at the scheduled meal

times except when medical tests interfere.
M e n u s e l e c t i o n f o r t h e f o l l o w i n g day s h o u l d be m a d e
during the breakfast hour.
If your selection is not
completed during that time, you will receive a regular house
tray for all three meals.
Foods should be eaten in the dining area only unless
staff permission is received.
Foods kept in the bedrooms
should be with staff permission.
F o r safety purposes, glass bottle containers are not
allowed on the unit.
Soda cans are also not allowed on the
unit. Soda and juices should be poured into papercups.
Foods brought from home or from friends will be examined
by s t a f f , labeled, and put in t h e pantry a r e a f o r s a f e
keeping and storage.
Pantry access is available during the following hours:
9:30
10:OO a.m. and 8:00
8:30 p.m.
Foods ordered from outside the hospital should be
o r d e r e d b e f o r e 9:00 p.m. and must be o r d e r e d by a s t a f f
member.
TV AND RADIO
. TV and radio are allowed when not interfering with other
Ix.
\.
therapeutic unit activities.

As a courtesy t o others, the
hospital stereo should not be turned above "3" in volume.
Because of fire/safety regulations, all personal stereo/
r a d i o e q u i p m e n t must be approved by h o s p i t a l m a i n t e n a n c e
prior to use, unless it is battery operated.
X.
BEDROOM AND LIGHTS OUT

Monday through Thursday and Sunday lights are out at
11:OO p.m. t o e n s u r e an opportunity f o r plenty o f rest.
Friday and Saturday lights should be out at 1:00 a.m.
R o o m s should be kept neat and clean.
Beds are t o be
made prior to morning group.
Linens are changes on
Wednesdays and Saturdays. Patients should not visit in other
patients' rooms unless invited and with the permission from
the staff.
XI.
MEDICATIONS
Patients are encouraged to know what medications they
a r e taking. M e d i c a t i o n s c h e d u l e s a r e p o s t e d o n t h e u n i t
bulletin board. Patients are encouraged to be prompt for the
scheduled medication.
N o m e d i c a t i o n i s t o be k e p t at t h e bedside.
All
medication brought in from home is t o be kept at the nursing
station.
XV.
FORMER PATIENTS' VISITS TO T H E INPATIENT M E N T A L HEALTH

SERVICE
We encourage former p a t i e n t s t o r e t u r n t o t h e I n p a t i e n t
M e n t a l H e a l t h S e r v i c e f o r v i s i t s t o keep i n c o n t a c t w i t h
supportive staff.
However, r e t u r n i n g f o r t h e p u r p o s e of
v i s i t i n g p a t i e n t s w i t h whom t h e former p a t i e n t has developed
a f r i e n d s h i p i s not encouraged. T h i s may i n t e r f e r e w i t h t h e
current patient's treatment.
i
nd Health Care Center
Direct Dial Number: 291-8163
September 25, 1987
To:
Stanley Caterbone
Conestoga, Pa. 17516
Amount Due:
$3,064.60
Account Number:
081609802
Enclosed i s a copy of your hospital b i l l f o r services from 9-9-87

to
9-15-87
The amount of the b i l l i s $ 3,054.50 , and i t i s your responsibility t o see that the hospital i s paid i n f u l l .
Full payment i s due w i t h i n 30 days. I f you would l i k e t o s e t up payment

arrangements f o r a period of 6 months, you must c a l l our o f f i c e within
10 days.
I f you have any insurance coverage o r Medical Assistance information t h a t
will help pay a l l o r part of t h i s b i l l , please contact our o f f i c e immediately w i t h the necessary information.
Sincerely,
7);,L7c
DRB@LA
Patient Accounts Representative

St. Joseph Hospital
CARING AND CURING SINCE 1883

250 College Avenue. Lawaster. Pn 17604
-----I-
,--
-I-
,-AMY(
".YLIU*I
c-.
llD
Financial Management Group, LTD

Eden Park 11, 1755 Oregon Plke Uncastcr, PA 17601
7 1 7 - 5 6 9 4 1 0 0 800-521-8567 800-322-1128 [PA only)
.NLEY J. CATERBONE
Capello & Foley

831 State Street
Santa Barbara, CA
Attn: Diane Carrbell
Dear Diane:
As per our previovs conversation,
emlozed i s the brief awry of my
care! I want to t b n k the law f i r m of Capello & Foley'for a l l of t h e i r help!
Regretfully,
Emlollre
:
Barry Capello
S=rurHler Offered threuph PI.+er's

Se~u1ItIe1Group. Inc.
A R=plitertd BrokerlDealir
Mlmber SlPC
h3.rnb.r
NASD
RECORDED TRANSCRIPT WITH
THE PENNSYLVANIA SECURITIES

AND EXCHANGE COMMISSION
"JAMES GUERIN AND ISC OPERATIONS"
~97''
Subject:
Quotes from a recorded transcript between Stanley J. Caterbone and

Howard Eisler, Agent of the Pennsylvania State Securities and Exchange
Commission. This transcript was recorded with the approval of all present
parties.
Date of
Conference:
September 6 1987
Place
of
Conference:
0
0

Conestoga, PA 17512
Relationship to
James Guerin:
ISC Shareholder
Debtor to Parent Federal Savings and Loan
The following transcriptsd represent a few of the converstions recorded during the meeting.
Stan Caterbone
Stan Caterbone
"Jim Christian owned it now I hear rumors that I was tied to ISC and I am
close to several people in that organization. Why they sent someone'in to
California to see me, I don't know. They wobt answer me."
Stan Caterbone -
"they wanted me to talk to a guy from D.C., New York, a guy from the
Caribbean. I don't know what the hell is going on."
" Chem Con is the big local minority-held corporation that was doing a lot
of Defense contracts-it was associated with ISC. They went under last
spring, beginning of the summer, and there was a lot of criminal auegations
made, none of them substantiated. And I was connected with that. They
sent a board member in to see me a week before this happened. Why. I
don't know."
Howard Eisler
"the supposition was - I don't know how true it was a front for ISC."
Stan Caterbone -
"It was, I'll tell you why. Because when Chem Con was started, back to their
inception, you look at ISC's books. They didn't have any money. Well, the
f i s t thing Chem Con did was they went and got all that free money from the
government and you look where that money went. I bet I know where it
went."
Stan Caterbone
"this guy named Geurin, James Geurin. And I know that they were selling
contracts back. He runs ISC and he also has his fmgers pretty deeply into
Chem Con. He's the one who started Chem Con, Guerin is the one who
started it."
" Wasn't there some allegations about a tie to Wedteck?" (Defence
Howard Eisler
Contractor of New York)

Stan Caterbone Stan Caterbone
(I
Stan Caterbone Stan Caterbone
'C\
"You bet. They were tied, you'd better believe they were tied with Wedtech.
The same guys in Wedtech were invoked with ISC and Chem Con."
"ISC is sold over the London Exchange. (I bought my shares from Gib
Armstrong) I owned a thousand shares."
" I sold it when things started to hit the
"
N
"
iust did a multimillion dollar merger with a company in London.

They probably think this is going to cover their tracks.',
Stan Caterbone -
"What they did was, they fronted all that money and started the contracts,
went bankrupt, and now the government is stuck for $18,000,000."
Stan Caterbone -
"I know right now in this town's viewpoint, I stole money, I am insane, and
I am a lunatic I tell you I will not condemn Jm
i
Christian until he tells to
my face what happened."
C)
Stan Caterbone
Stan Caterbone -
"I was framed and set up...-....."

"I don? know maybe Jim Christian doesn't have the money. Maybe Guerin
has it or somebody else"
/?
$.fibne of
0"
the items in the column (newspaper column) is the reporting of your
- somehow
somebody associated with - oh, someone associated - in your District Office? Yea. Of
course you were also one of the principals in the - I still am the minor one
- there is about 50 names I am dealing
- yes, the
with here and they
are all very similar so I have to be --- Financial Management Group Ltd. filed for 202B
exemption. Now all the security sold in PA had to be registered. Some securities are
exempt but you have to apply the detention type of thing. It is a registration, not a
registration that
so the 203D exemption was filed for. Of course we have
added the security statement
- explanation of
where the money is going to be spent, how
it is going to be run, who runs the corporation and all that sort of thing. Now under
the umbrella of this Financial Management Group there is a whole (now I a m repeating
what is in the 203D which I spent some time Friday reading)
- there is about
15, 14 - I
guess under that there is about 5 other corporations which are going to be an insurance
agency, an investment advising agency, a group
- now a lot of
these things have not
come about. Well we simplified it. What do you mean simplified it? They are operating
but because of the accounting procedures they would have been a nightmare with all
those stubs. So, they a r e operating
- the only one that's
separate distinction is the IRA.
Everything else is operating under Financial Management Group Limited. So these other
corporations have not really come into being. Technically, legally, no.
I seen also; I guess there is an application for a n investment advisor. Now, if you are
selling securities or dealing with
Now that came in under your name ...at
that time I was President, but now there is another application i n that is being acted on
now by somebody else. There is? I don't know who. Is that for the advisor? Yes, the
investment advisor.
Do your current records in Harrisburg indicate that he is still an executive with FMG?
Yes, because this offering memorandum was given back last March I think,
- last August
when I initially did it. Oh, no, pardon me. We are talking about two different
things. You a r e talking about your application for the investment advisor. No, I a m
talking about FMG
- the offering memorandum was done last August because that's
when
I started raising the money. August of 1986 is when I did the initial filing for the
offering memorandum
- the
144
Coming up this October is the 203D. 15 months
after conception. Alright, yea. There is a report that is due a year after
that's what is coming up
- Right,
- to explain how much money was raised and where it was
spent with the idea then of protecting investors. The idea of the
1
your are
limited to like 35 investors. You can't sell to 105 - you are limited. What the state
does is comes in and says, how are you going to raise the money in your offering
memorandum. Then a year after it is raised, or a year after
they comc i n
and say, now what did you do with the money. You raised 4 hundred and some odd
thousand, now how did you spend it? Now that has not been filed yet. It is due, in
fact I think it is overdue. It is due October 20. I got the letter right here. They just
sent me the letter. You guys just sent me the letter, I have it right here.
I have nothing to do with that end of it. I just came. well whenever I called you
I didn't get a hold of you the next day; it was the following day which was
Friday t h a t w e made contact.
Our idea in coming here was to let you ask whatever questions you had in terms of the
investigation. Of my limited knowledge of the type of securities these guys deal with
and securities in general, the things that came t o interest me was the fact that there
are stock certificates in here in force with names on them that
, that there
are with the annual report, his name is forged by someone else. This gentleman has
some involvement with the original group and the President suggested that he make false
reports to the bonding company so that he can get money back. They are the three
things that stuck out to me as a regular criminal attorney, that I thought you might be
interest in because, but like I say. we a r e here to have you ask questions of anything
that you might.
O.K., this offering then
- when Financial Management Group limited applied for
their
203D, I get the idea they were going to raise four hundred and some odd thousand
dollars. At that time, they listed Bob Kauffman a t 60,000 shares and you and Hartlett
40,000 a piece. So, Kauffman a t this point is the main factor? Or, when 1 was talking
to you, it was really your idea that put this whole thing together. I put i t all together.
I brought him up from Atlanta to be president because I have a lot of business interests
and I didn't want to be tied down to the day-to-day operation. Plus, I never had any
management experience. Most of my work was consulting, business deals, this and that,
so I actually brought him up from Atlanta to be president. And, Hartlett
- is he a
complete local person. He's local. We all started together in IDS back in 1982. That's
your connection with Kauffman. you know him through IDS? He's the one that got me
started in business. I am the one who took him to FSC, that was our broker/dealer and
we started putting it together. Are they registered as FSC? Yes, that's John Keegel.
This similarity in names is a hassle; you are going to have to bear with me because you
throw these names out at me
-----.
So then, you had the public offering which you were going to sell another 120,000 shares
and raise $435,000. That would be in addition to what yon people put in. We put in 20
grand a piece. Well, we had 5 people. You were allowed 5 shareholders
- so we put in
5. Five put in 100,000 - five a t 20,000 yon mean? No, it was a little bit more than
that. Three of us put in 20; two put in 25. What we are talking roughly is one half
million dollars? Right. Financial Management Group now is responsible for maintaining
proper control over that money and it would be invested as 5
many people
- there is roughly
- now I don't
know how
18-25 - that was sold as a result of the public offering.
I have that here. Do you mind if I look at it. That's 0.k. I went through a half hour
of frustration to get here. I wasn't running late until I got caught in the
The
way you described it, I assumed it was going to be in the country and I knew ...I stopped
a t the Post Office. I said where is 2300 New Danville Pike. I don't know. I was here
on Friday and I drove past it this morning. You'll bear with me then.
This is interesting. I've got about 40 shareholders. Is this as a result of the 203 deal?
Yes. Did you know about that. These are all the ones that are forged by the other
guys? No, no, just one is forged.
Now, yon people were acting as your own sales
. Were those funds all
properly accounted for? Were they all collected and put in the bank and the people
received their stock certificates. Uh, huh. Who all would have been in charge of that.
Mainly me. I was in charge of just about everything. Now, we have one-half a million
dollars or there about in the bank account. Where? They never would show me the
book
- my partners - never.
They never showed anyone the books to this day. I got
shut out literally. What brought that about? They were trying to take the company
from me from day one. I had too much power, too much control. They wanted to cheat
and be dishonest and I wouldn't. What happened was we had to acquire a n interest in a
broker/dealer to assume our equity, to realize our equity potential. So back in January,
we drummed u p this deal with a broker/dealer called
and Brown out of DC.
The deal was we were going to acquire 20% of their broker/dealer in return for aligning
our group with them. What I found was
- I went down there after about 3 weeks of
them not doing what we needed, I got scared. I had so much money and time into this
company. I went down there myself and found an empty shell
- nothing.
Now, as a
corporate office, I know how liable I am, for everything, personally. Then what I find
out is that Hebron is a born-again, just like Kauffman. Oh, Kauffman is - yes. And,
is a Jehovah Witness. I get pissed off, so I swing the whole bore, change
everything and I line us with Planner's Security Group in Atlanta
that group is Wade Webster. Bill Carter
- Bill Kaker.
- all the former IFP presidents.
International Association for Financial Planners
- the big guys.
Now, in
ISP?
So, I swing everything
around, turned the whole board over, aligned up with them. The day after I get back
from Atlanta, Kauffman calls me into his office and goes through this spiel with I
thought I was president, who's running the company? I said 1 don't care who runs it, it
just got to be run right and for the right reason. Two weeks later, I am in New Jersey
working on a movie and doing some things
- I had my lock changed in my office for
security reasons. I find that they have all these stock certificates and everything that
were in my office. You had the locks changed? You had them changed yourself, but
they still got into your office? I don't know how. They stole my files. July 1, I went
in and took all my files out of the office and went to an attorney, Joe Roda, and
explained what happened. Nothing. I met with attorneys in New York, New Jersey,
Boston. I found all these security violations and everything else, but no one could help
me. Then, about four weeks later. I called the FBC, the NAFC, the FBI, the Attorney
General, Senator, Governor, everybody. And, they all think I am bluffing.
Actually, they all thought he was crazy. They all thought I was crazy. And that was
started because of Robert Kauffman. That's what he did. The day after I went out and
got my files out, he spread rumors that I left the company, that I was thrown out, that
I was mentally unstable, that I was spending money. At that same time, I get
blackballed by all the local lending institutions. They repossessed my claim three weeks
before my first payment, with the files in it, of which a brother of the broker in FMG
is one of the lending officers. It gets ugly. That was before he spent the 5 days in
jail. I tried to get arrested. I had to. Then after you were arrested, you were in the
hospital at St. Joseph. I was coerced into going there.
No, that was my idea. I wanted him in a place where we were going to satisfy the
victim so to speak, and the police a t one point, that he would still be able to work with
them. In reality, he was in the hospital but had his car in the parking lot. He was
going to play basketball and come back. He was not committed. He was just there. I
walked in to satisfy the bail. Are you on medication? No.
One of the police officers mentioned to me that he was
and that you are
alright now. Again, this might be one of these stories coming from FMG. What
Kauffman did was, back when they started doing this I had a psychiatrist that was my
client. I was depressed. I mean they were making a fool out of me in public; they were
firing people that were very close to me for no reason other than they were close to
me. So I went to A1 Schultz, a psychiatrist, because I was depressed. Very normal,
given the environment I was thrown in after putting this big thing together then having
these guys slam i t in my face, then take all the credit for what I did. He diagnosed me
as having biphola, depression. My father was schizophrenic and my brother committed
suicide two years ago. The reason he diagnosed that was because I was on a low, and
a t previous'times he thought I was on a high when I put this company together. So,
what I did was, three weeks before July 1, this previous July 1, I told Kauffman that I
went to see a psychiatrist because of how depressed I was because of what he and
Hartlett were doing. They fed on that, and tried to use that to use as their alibi for
'
what they have done to me.

Again, t h e r a y 1 am getting this
- I didn't
know anything to start with
- I just
haven't
to make inquiry a t the police office and one said that you were taken
not.
I was
See, that was all started by Kauffman. He actually h e had meetings
with my family to have me committed and take guardianship over my assets so he could
buy the stocks from them a t what ever price he felt like it.
Incidentally, you may want to point out that as late as mid-August of this year,
Kauffman wanted t o buy you out for $2.50 a share or something like that. We have that
documented. Eight weeks prior t o that, I was working with the attorneys to do a 5 to 1
split. That makes the stock worth $25. Either he is ripping me off or he is ripping the
people off who are paying $25 a share.
The offering as you people had it was 3
issue completely sold
- that
prices. It was $5 a share. Was that
120,000 shares? No. Was the best part of it? There was
4 hundred and some thousand sold. Did you buy any of that stock? No, I was in the
organizational sale. You don't know how that money is being accounted f o r now. I have
the corporate books. When I went in there June 30, I mean I was in there. I mean it
is not like I went in from the outside; I had a plane and was flying back and forth for
me. In fact, what happened was, I was granted a 60-day leave of absence late June with
pay. Really, what I wanted to do was meet with legal counsel and find out how I was
going to resolve all these problems that I was finding. What happened was, in June I
copied everything in that office (June 30th). and I copied the books. You see, I
developed a computer system. So I just took one of the copies
- it was a big system.
I've got the books. I don't know how accurate they are because the way that the guys
kept the records, the accounting is all screwed up too. I have an idea, but I found a
lot of money going to people that should not have been. In what way? What they did
was, there was a lot of Jehovah Witnesses that were hired in that firm
- receptionist,
cleaning, etc. Then what they did was replace all the staff people that I brought in
with their own. Then, there was money going out to a fellow by the name of Tom
Turner in Minneapolis. Now Tom Turner was the biggest divisional manager in IDS. Hc
was terminated by IDS in February because of religious convictions
- another born-again.
Then I find this guy was making $750,000 a year with IDS and I find FMG loaning him
money? Is that what they are going after
- in the form of loans?
Yes. And, how much
money are we talking about going to Tom. 12-15 grand. Then. I find checks going to
(-1
Kauffman's wife. Large amounts? Are you talking a hundred dollars? No, a thousand
here, $800 here.
FSC, which is a registered broker/dealer, was an entity started by you? No. What
happened was, back in 1983 I had a dinner meeting
- I was running the local chapter of
the IAFC - and I drummed up a business meeting and had Alex Armstrong. Do you know
who Alexandria Armstrong is? Yea. She was one of the most prominent financial
planners in the company, a woman from DC. I brought her up to speak a n d I told her
that I wanted to get out of thc proprietary business. She said, go talk to John
FSC. Now, this is when Kauffman, Hartlctt, everybody was still a t IDS. So, I went a n
had a meeting a t FSC in Atlanta. At this time, Bob Kauffman was the Divisional
Manager for IDS in Atlanta. The next thing I know. I left; then he was hired by FSC to
be an officer and to run their sales force.
Then the idea of the company you a r e forming up here is to invest other people's
money? No, it is a one-stop financial entity
- provides services in mortgage backing,
investment backing, insurance, real estate, taxes, lending, portfolio management,
everything. I had it researched legally by a leading patent law firm in Phila. It is

definitely the most innovative in the country. There is not a firm in the country
offering all the services that we offer.
Now, just up the street from your place
They are
that line. I mean big. We're talking an office of 10,000 sq. ft. right here and 35
people; then we travel all over the country. When I say offering services, we have 2
attorneys in there, we have 2 realtors, 4 insurance people, a portfolio manager, 8
financial planners, 5 brokers
- I mean, in depth.
Before I left, I was working on
mortgage banking. I had started a mortgage banking operation and the minimal loan I
wa looking a t was $3,000,000. 1 bet you I bid on S150,000,000 in the first 6 months of
1987. These were loans that you were going to provide the people with? You bet.
Where was those funds going to come from? They were coming from the largest biggest
insurance companies, the largest pension funds, and some of the largest banks. 0 . K . you
were going t o be a s a mortgage banking type of thing. That is right. You were not
lending the money; you were putting the lenders together with the borrowers and you
get a finders fee, or whatever. Yes.
(--')
&:how
did you get into this? You were an initial investor? No. I've been with Stan
since he started in business in 1982. I had come into some money and I was investing. I
had lent Stan some money and things got really screwed up with
and all. FMG

told me that they were responsible f o r the money because Stan was an officer of the
company and that they would
Then, after several me
with them, they more or less asked me to say to the bonding company (that they took
out after June 30th of this year) - t h e y wanted me to tell the bonding company that I
gave Stan the money to invest for me and
&fm
with the funds, which I flat our
refused to do. As a matter of fact, I damn near punched Kauffman in the mouth when
he was asking me to commit a very serious crime.
Now, Kauffman's background, is decent, is it not? Clean on paper. I mean he worked
for
- clean on paper;
there's a lot of people after that man. What he did to FSC was,
he was double dipping. He was telling FSC that we were going to stay with FSC the
rest of our lives; in reality, he was telling me that we were telling them what I wanted
them to hear that we were going to do our own broker/dealer so we could obtain our
own equity. And then, I find out that he is receiving a salary from FSC up until
February this year. Plus, his salary is in violation of the offering memorandum. Two
weeks before I left, he had the Board approve a salary of about 2-3 times what is in the
offering memorandum.
Maybe this is why the 203D
- they're dragging their feet on this.
They don't know
what to do. I did all that legal work; they don't know how to do it. This offering
memorandum we are talking about
- I just
copied this. This is just happens to be page
9 and 10 because the type of information that is in it. That is the only thing we do
not have a copy here of. Well, we have a copy in the office if you need one. It is
public information; there is no problem with it. So are the books public - I got thrown
in jail for trying to get them. Well, we will try to resolve this; it is not going to
happen overnight.
Who is Kauffman connected with here. He called up everybody I know and told them I
left the company; told them I was stealing money from clients; told them I was mentally
insane. I was doing business everywhere. I was doing business with the Japanese; I was
doing business with the President, Stoney; I was doing business with High at New York,
Boston, Houston. Everybody all over the country heard that I was insane. Everybody.
f'\-
I've been 4 months without money. I haven't paid a bill since June 30. What do I do?
No one believes me. I tried going to the unemployment office. Do you know what they
did? When 1 was in the hospital, that was over $3,000. They called up the insurance
carried and told them to terminate me
- my hospitalization.
I have nothing. The only
thing I have is what is in this house.

Well, Kauffman comes up here from Atlanta, and he's a born-again Christian, so he
comes together with a group up here somehow. You see. he's hiring born-again people ...
Jehovah Witnesses. Hartlett is a Jehovah. There were more Jehovah Witnesses than
there was anybody. But Hartlett was somebody you brought in though, wasn't he? Well,
what happened was I put everything together. But would it not be right to say that
Hartlett would be your person as opposed to Kauffman's person. Well, it is those two
against me. They are the two that are trying to take the company from me. See, I
controlled everything. Everyone went with what 1 said because I did things that were
right for business and right for people. I treated people fairly and honestly. People
respected me more than anybody.
Did Kauffman in the initial offering that you had, the preorganizational offering - each
of you put up $20,000
- did Kauffman put up 20?
He got more stock; he never paid the
other 10 for the remainder of the shares. He was supposed to put in 30 for his 50 $50 a share. The three of you put in 20. Then, he had a back agreement with me to
sell me 10; so we both would have 50,000 shares. I got that contract and he never
fulfilled that. I said no way are you getting more shares than me when 1 put it
together. I said you can be equal with me. But how did that come about? We signed a
back agreement so Hartlett wouldn't get mad. I had to write to buy about 10,000 shares
from Kauffman, 50, to give us both 50 a t anytime a t $.50 a share. You have that
agreement? Yes, he never signed it after he got his 50. It was a bad move on your
part. There is nothing wrong with the idea but do you think a t that point he was
conniving to d o
- he was conniving from day one.
When we put this thing together, I
was in the middle constantly between Kauffman and Hartlett. In fact, a t one time
Kauffman was going over an idea
- this was over a year ago before we moved
into the
office - about how he could set Hartlett up to get him out. Then, when he couldn't get
Hartlett out then the two of them tried to get me out.
Now, everything is in place and it is operational? But obviously you have a lot of
Ci
contacts to make this thing go. I'm out. I haven't talked to anybody? But you did
have initially. You already made them and they now have the
- yea, spent 5 years.
But now they've picked up your contacts really, so to speak? Exactly right. They are
acting as mortgage bankers, etc. The whole bit
- everything I put into place,
they just
stole away from me. See, I never communicated with people. I couldn't, only because I
couldn't find competent legal counsel to tell me what to do. All they did, was send me
bills. I didn't even want to send a letter to everyone explaining the situation until I got
a competent legal counsel to tell me what is right, what is wrong, and what to do. I
went to 3 attorneys and they tell me there is no violation
- and I'm
in jail for 5 days
for what they did to me 3 months previous.

Even according to FMG, Stan was with the company until July 1, is that right?
Here are 2 certificates, June 25th, signed by Bob Long, Secreta~

I wasn't Secretary, I was a Board Member. And, this is April 24th. 1987 Semi-Annual
Report in which someone
- forged my name.
I never even saw that. They never even
had an Annual Shareholder's Meeting; they never let people examine the books that have
wanted to.
Of course, all of this would boil down to their getting money from somewhere, extracting
money. Either they are cheating somebody and putting it in their pockets or taking
exorbitant salaries
- is business that good that it could stand that?
We are paced to do
$4,000,000 PC1 a year, that's a lot of money passing through your hands.
, doesn't it affect those people? Are they
Now the people that are
skeptical of what's happening? I have no idea. I know the clients that 1 have talked to
to, that came down from New Jersey to find out what really went on ran the other way
as soon as they talked to me. In fact, one woman got so sick, she went downstairs and
threw up when I told her.
Well, you know the corporation, regardless of what the situation is when there is a
problem like this with you, or anyone, the corporation has to continue to function? The
fact that somebody has signed your signature to a financial management semi-annual
report. I don't know if that is a security violation, in that end of it. If it would be
corporate law, it may be, but not at the security end of it. Well, someone changed my
address. Who knows who gets my mail? I never changed it. From where? From 1755
Oregon Pike, FMG. It goes here; it goes down to New Jersey. 1 never did it; who did
it. They go through all my mail
- open all my mail, then send i t to me in bunches 10
days later. This is the Financial Management Group that does this? Of course, it is
coming to you as one of the principals in the corporation, and if i t comes in from their
standpoint, they wouldn't know if it had to do with corporate business or your business
personally. The fact that they opened it may not be ethical, but I don't know that
-.
If you change my address, that is forgery. You got to go to the Post Office and sign to
change an address, don't you? Well, I don't know. If you are no longer associated with
them
- who says, I am no longer associated
with them. The Post Office doesn't know
that. If somebody comes in and says you are no longer here, you're over there - I don't
know that the Post Office - somebody there should not have done it.
These are things that show this is not fabricated or something; they are actually
happening. I got so desperate I already wrote 60 Minutes.
How much money are we talking? Millions. That they have taken? I was Executive
Producer of the first digital movie ever, in the world. I was to get 40% of the profits.
I could have made 100-200 million dollars. I was ready to do a deal with the owner of
Turkey Hill. I was supposed to receive a check in July for $200,000; after he heard the
rumor, he backed off. How much have they squandered? How do I know? I can't get
at their books.
These stock certificates that you
Scott Robinson, for instance, bought
42,000 shares. Stock certificates wouldn't
In June of 1987, he bought
2,000 shares of stock. Now the signature that is forged on yours is the secretary. It
should have been yours, but there is nothing wrong with the certificate as such
- aside
from the secretary signing the certificate? There is something shady about that stock
deal too. You see this is a year, not quite a year. Would this be part of the of 203
offering? Yes, everything is. All stock is part of the 2030. What I a m saying is, Scott
Robinson bought the 2,000 at $5 a share or whatever; he put up $10,000 and he was
entitled to get a certificate. If you weren't there to sign i t
Telephone call
'
- someone for Bob Kauf f man
If Scott Robinson put up the money and Peter Ponderose put up 8,000 shares, if he paid
$5 a share
- they didn't
pay $5; they paid $2.50. Regardless, they were entitled to the
shares. If they can't get at you to sign the shares
-- why couldn't
they get me? I was
in that office. Oh, you were still there in June. Yes. Even according to them. When
were you actually locked out? July 1. That's when I went in there and took my files,
when I found out they were doing that. Because they only way they could get the
certificates was to break into my office, because I had them. You had the stock
certificate book? Yes, I did everything
- they didn't
even know how to d o any of that
stuff. That's how I caught them. I knew the law because I did it. I did the
memorandum and everything.
The thing that is wrong with these certificates basically is the fact that Long is signing
as secretary and at that point, on the 25th of June, you're the secretary. As f a r a s we
know, these things could have really been negotiated a t the end of July a n d backdated.
I am not trying to beat you down. I got them July 1 - my attorney copied them for me.
That's how I got those copies. What you are saying, prior to your being locked out of
this place, they were already bypassing you. They found out that I was talking to an
attorney. Now what would they be afraid of when you were talking to the attorneys.
(-
11
What they were doing. Of course, they do have control of the corporation
- between
Hartlett and - I did, I controlled the Board. That is why they threw me out. When I
made a decision, the Board followed it. But now, they are gaining control of the Board
I have no idea. I have never heard of a Board Meeting. Who is on the Board of
Directors? Me, Bob Kauffman, Mike Hartlett, Bob Long and Alan Loss. I heard those
names; I can't remember where. They were the signatures on the semi-annual report. Is
Long a born-again Christian. No, he is the accountant who hired from Main Herdman.
Were you a party to hiring all of these. Everybody. Pete
was terminated by
Shearson and I was the only person in time to give him a job. He already had some
trouble with the NASD. He was suspended; it took about 5 months just to get him
relicensed
- they had charges against him, allegations - forgery - in fact what he did
in
June was he went and used another persons rep number a t FSC to do options trading and
that person supposedly reported him, or wanted to report him
from Lancaster?
- Greek.
- Dick Sherbach.
Is he
But he is from Lancaster? Yes, but he was working in
Harrisburg a t Shearson. They fired him in November. I saw his name but I can't
connect it. So many names came up as a result of this
- I'm
sort of swimming trying to
get everybody straight. It's not easy, believe me. Time is one thing that I have a lot
of
- so do I.
I can't d o anything else, what can I do?
Did you ever hear of a

some outfit
or
organization? Some years ago, there was
- New Environmental Technology - Remember when that was floating around.
They had a big shindig down a t the Strasburg Inn. A lot of people from New York came
in. The whole thing fell through although Environmental Technologies are is a local
corporation in business a n d they were trying to merge with
Corporation out of New York. I a m not familiar with it.
Shell
Again, it was a lot of born-
again people that would meet; they would push on the idea that all things stock up.
Well, I know h e is running advertisements on the radio that deals with the religious
sect.
Now, that they are set up, does the Financial Management Group need money or do they
have enough money to operate. No, they've got money. They are a self-sustaining
operation then; anything they get from selling securities they will pick up the
commission, if there is brokers mortgages they will pick up the commission on the
mortgages, and that's enough to keep them going, right? Oh, yea. They a r e not pressed
for money? No. Have the handled the customers/investor's money correctly. No. You
.
i
12
have mentioned they've given money to Tom Turner and Kauffman's wife, what else
have they mishandled? I know the Federal people wanted to investigate Kauffrnan's
books, of his stock book that he was managing. This is when he was down at Atlanta?
No, this is now. That's why they wanted him to liquidate his mutual funds so he could
manage it f o r him. They wanted you to liquidate your mutual funds? I told him that 1
was a little unhappy with the performance of the mutual funds that I had; he wanted me
to liquidate it and go into the stock market and let him work it for me. He was going
to act as your financial planner? I would imagine, yea, broker, buy and sell stock.
Have they acted as financial planners?
Is the one that you
last year
- illegally.
- Now there license has not
- there is over $100,000
been approved yet.
of our RIA fees that they have collected
Did you say IRA? Registered Investment Advisor. Do you want to
see it? Yea, let me. Who is registered now? No one is registered. I was that close to
getting it registered when I got shut it. It was all ready set to go; I got the papers. I
think it was just some questions. Were you working with Jamino? Yea, he is the
corporate attorney that I got
- and I think he is very
He is good. There's
no problem with him. No, Jeff's a good guy. He taught me securities law. I am trying
to think, this application here? Paul Short is who I was working with. I asked to see
the file quickly on Friday
C'!
- I didn't
know it was there. Now I am still President of
FMG Advisory. O.K., now wait a minute
- let me see, FMG Advisory comes in yet.
They threw me out of the Financial Management Group; they never mentioned FMG
Advisory which I was President of. Is this the one that applied to
- oh, alright, you're
using the initials FMG. that's Financial Management Group? Right. I set up an umbrella
so it would be consistent. What threw me off was. when Financial Management Group
was registered there was a whole lot of other entities involved which used the initial
FMG Advisory Service, Accounting Service. That was for continuity. O.K., then FMG
Advisory Service was never really, up to now. was never really registered a s an
investment advisor, right? Correct. They were registered
state?
but not with the
Right
But, now, during this time
- from the time they are in business, from August of
1986
until now. they have done investment advisory services a n d these a r e the fees that they
collected? I charged some. You are allowed to charge up to, what is it
- 14 people?
think it is only 5. I was careful about that one. I know I only charged 5 clients, I am
sure of it. T h e FCC really gave me a rough time getting that thing filed
- I couldn't
even understand their questions half of the time. They are a mess, they really are. I
13
must have spent 100 hours. I agree with you, there is a lot of attorneys work in the
Harrisburg, and the question is the application
- the question is about that long and
the
answer is Not Applicable. Yea, it takes you 3 hours to figure out that you don't answer
it. I agree with you. I have a tendency to want to throw it away. Well, after 5
months of fooling with it myself, I called Jeff up and said, Jeff, you got to help me get
through this thing. I got to get this registered. I called Jeff on the RIA probably in
January
- no, probably
February or March.
So, June 1987 was the last correspondence you had. Yea, right there it is. Right there,
it was done on June 23. I am going to want a copy of this. I need to get a copier in
here and copy it for you. I can't leave these out of here without copying them. These
files are just to valuable to me
- if
they get lost or whatever. You can attach it to
whatever you want, but I want to get a copier in here and make copies f o r you and you
can just run. I don't know where I am going to get money for a copier but
--.Well,
these files have been literally all over the country. In fact, most of these files are in 2
law firms in California and New Jersey. I was all over the place.
This is the application for your registration as an investment advisor. I would like to
see what the new one says on it. As you can see, they are all like a standard form.
Like I said, I have difficulty looking a t these things. If I am looking a t something I can
find it, but~justto look over and say its alright or whatever. But I would like to see
who they have listed on as officers. I just looked at it Friday and didn't take particular
notice other than I knew that Kauffman and Hartlett were some of the people. My name
wasn't on it. Oh, no, no, your name wasn't on it. Well if they are using FMG
Advisory, I am still President of that company. Well, I don't know in corporate law
what it takes to do away with a President at the Board of Directors meeting. I'll tell
you what it takes.
----- that's
exactly right, but they didn't have a Board of Directors
Meeting. No, the shareholders must vote on the Board. Shareholders must vote and
approve, and shareholders must exempt people on the Board. Shareholders have to vote
to remove someone from the Board. Yes, but the Board of Director would be elected for
a year to two years, whatever the situation would be. So that corporate officer would
be there for that entire period. The three of us were elected to the board for a period
of 3-5 years. The initial Board members
- this was one of
Kauffman's move to gain
control over a one-year term. Me, Kauffman, and Hartlett were 3-5 year terms. When
did that take place? We did that back in June of 86 when we started the company.
I
14
Your only connection with the company now is the fact that? I have no connection.
They will not let me
- and I have personal
belongings in that office, and they owe me
money. That is something that you two are going to iron out. See, my involvement is
criminal charges
- that's
how I am involved. And my involvement is going to be the
mishandling of investor's money.

Well, all of these other financial management groups are 100% stock holders
Advisory Inc
- FMG
100% stockholders? Yea, what it is, the shareholders own Financial
Management Limited; Financial Management Limited owns all the other subs. O.K., 100%
there is no other involvement? That's right.
- I think there would be some

give it to anybody - not even me. You
Financial Management Group's Semi Annual Report

financial information
- that's
right, they won't
had mentioned that there are offices throughout the country. How are those people
connected here? Shareholder and they are aligned with us through the broker/dealer.
They go through us to the brokerjdealer, rather than direct. We own 5% of Planner's
Security Group in Atlanta. We get the same deal that we 're supposed to with
Brown with this outfit in Atlanta. They are a fairly large broker/dealer. They are
doing about 15-20 million dollars a year right now, gross commission and
Is it Heubert? No, they are the born-agains that I left, I moved away from. What's the
name of the Atlanta Group? Planners Security Group
- Bill Kegler.
There's nothing
wrong with that group? Yea. they terminated me for no reason. As a registered rep?
Yep. I am sure they will come up with a reason; there is a reason why they did i t
because with the NFAC they had to file. I would like to know why? You know, you
were termed because you were sick or, you know there is going to be a reason.
Whether it is true or not. Lying has become a n accepted norm for all of this. Well, in
their compliance department, all of these broker/dealers should and generally do keep
very good close track of their sales people. How can they when 1 did the deal? But
Financial Management Group owns 5% of Planners Security? Bill Kegler was with FSC
and got angry when he couldn't run FSC 3 years ago. Then he started his own
broker/dealer. This is with Planners Security? That's right. He left John Keebel
because of a power struggle with them.
But now, other than terminating you when they shouldn't have, they are not doing
anything bad? How do I know? Do you suspect they are? Yea, they terminated me,
you bet. You better believe I suspect. If they are doing that to me, what are they
doing to the poor clients who don't know anything. The same thing with FMG
- if
they
are doing all this to me, what are they doing to the clients that don't know anything.
My clients are pissed.
So, what they could do is withdraw their money from the organization whether its in the
form of stock or whatever, but there is nobody making investments
Your money is invested through
? I've got the former Medical Director
St. Joseph Hospital that owns 10,000 shares with FMG that is very upset about all of
this. He,is away; I couldn't get him last night to come to the meeting. They got 35,000
of his. He went through everything from that company
- but he still owns the stock?
What did they offer you $2 a share or something? They didn't offer me anything. But
in that letter they did. They offered me when it came time for me to get the check
because they knew what I was going to do. Well, you wouldn't have taken the $2 a
share would you, because you were talking about a 5-1 split. I would have taken i t but
I would have pursued my civil and legal rights and sued them for the rest. I went 5
days without food
- I was starving.
I had no money - 5 days without food
- people
look at me a n d laugh. Did you ever go 5 days without food? when you are worth a
considerable amount of money?
Kauffman told me that he was going to offer Stan $1-1.25 a share to settle it out, to
buy his
and out of the proceeds of that he was going to pay me the money
that is owed to me first, right off the top, I was his first consideration
- that he
wouldn't buy the stock unless my note was satisfied. You have a note with First
Financial Group claiming they are liable for it. So you took the money and put it into ?
No, I don't know who has the money. A bank either has it or Lancaster Aviation. It
was embezzled from me, I don't know who has it. But they are acknowledging that they
have custody of it? They were acknowledging liability for it. We don't know who has
it. Either Commonwealth Bank has it or Lancaster Aviation, I don't know. But you put
it in the bank? No, I didn't put it anywhere. He gave you the money, what did you do
with it? I gave it to Lancaster Aviation for the airplane. Then they repossessed the
airplane before my first payment for, I don't know why. And I don't know where the
$25,000 down payment is. He don't have it and I don't have it. But the $25,000 went to
7
him, not as an officer of the corporation? To me personally. The airplane is not part
of this corporate complex? No. But now Financial Management Group is saying they
will pay you back that $25,000? Uh, huh. They sent letters to all my creditors. They
told me that on 3 different occasions
- before they suggested I go to the bonding
company. Then they gave me a letter saying basically that if 1 wanted to talk about it,
talk to their attorney. Well, did you tell him about the bonding company? Yea. They
wanted you to sort of make the allegation that I gave Stan the money to invest f o r me
and that he had scuffled the money
- they wanted me to tell the bonding company
that,
which I refused to do. They took out the bond after July 1. I got a thing in the mail
about a bond; I thought what is going on. Then he told me about a week later
that's what that is
- a $4,000,000 bond.
- I said
You know the bonding company? Fidelity.
Of course, I a m thinking from their standpoint
- Financial Management Group has not
seen the $25,000. No, I don't know, maybe they have it. They might have it. Well, the
only way they could get it is if it were a reimbursement made on the airplane. They
were the ones calling the bank and the Aviation Company about the plane, asking what I
was doing with it, where I was going? They were the ones that initiated all the
conspiracy with the lending institutions. My credit rating was excellent up until August
01 down the line, never owed anybody anything.
I : (
This-is going to drag out; I will keep in touch with you. Now. you also have
investments through mutual funds through Financial Management Group? And how much
money are we talking about roughly? About 170,000. Now. do you have the certificates
for this. No, they were never issued. They are held in
with the broker, and
the broker in this case was? His probably weren't transferred yet, it was probably FSC.
So, it would still be a monthly statement from them
- so there is no problem with it
disappearing. I don't get anything from FSC, I get it from Keystone
- FSC is noted as
the broker/dealer, I a m sure. I doubt that they were yet to Planners Security. I get
the interest off that money, I get a check every month. But your investment is not in
jeopardy now, as f a r as you know.? No, but he is on disability a n d 25 grand meant a lot
to him.
Now, Kauffman wants you to sell these the mutual funds a n d give him t h e $100,000 to
invest as a broker? Right. Of course, you are reluctant to do that because you still
have confidence in Stan. I have confidence with Stan and I am not very comfortable
dealing in the stock market just now. I like more settled investments - the stock
market idea and I don't get along very well. I am looking for safety of my investments.
Like Stan said, I a m on disability a n d I d o need income. And K a u f f m a n promised you a
fortune if you made this transaction? He didn't come right out and promise me a
fortune but he insinuated that I could d o a lot if I let him work the stock market.. He
was doing all options, that's all he does. Well, I don't want no d a m n parts of options.
You look a t his client files; they are all option accounts. All of them, little old ladies
down to
--.
Here again, which you know, the broker when he is talking to you, or the registered rep
when he is talking to you, should file a form as to what you want. Now you just
mentioned to me that you are a conservative of man. I had him in government
securities.
- And
they should have these on file. Now, if you are conservative and you
give him the moncy and he starts dealing in options, he is really violating the trust that
the government and the NAFC is trying to establish between the client. I tell you what.
I feel sorry f o r you guys. You guys got a hell of a nightmare. Stan always backed me
up; there were times I pulled my investments out and put them in CDs for a while
because I was just not comfortable with what was happening. And, I tell him what CDs
to buy a t local banks. I have the utmost confidence in Stan. Mr. Kauffman tried
extremely hard to shake that confidence.
He tried to shake up my own family. He had my own family believing. Do you want to
know something. I n August, I was on my way to Hollywood to the film studio and to
see some legal clients I was working with one day
to get a night's rest. I get thrown in
- that
night I come back to my house
- I go to the police station to get a restraining
order against my family that didn't understand what was going on - I get retained in the
police station f o r two hours, get taken to a hospital. That day, someone called the
Stone Harbor police and said I had a gun and was running to the beach to kill myself.
This thing is ugly.
As a matter of fact, I would believe I am the only one left to believe Stan is still sane.
Well, I caught on real ~ u i c k . I don't believe he had anyone to talk to except me. I
didn't. 1 could talk to him every other day since April; someone had to believe what
was going on. I have tapes
client of mine
- I have a tape of Bob Kauffman July 3 telling a, supposedly
- it was actually my brother - that I was mentally ill, spending money
that I shouldn't been, and wasn't taking care of my clients. He told me the same thing.
that Stan had wasted away somewhere between $45,000 and $70,000 of his own money,
just throwing it away on frivolous things.

Every minute I have ever spent and every dollar I have ever spent, I've made money on
anything. I got my brothers in profootball
- held my own free agent camp.
And, they
were both picked up last week, as a matter of fact. I was involved in that too. Right
there. I thought I heard
r
- is he connected with
the Eagles? Eagles and Dauphins. I
just heard it on the news
- one of
those things - I heard the name mentioned, it is not
that common a name, and I heard the name mentioned in the newscast of the NFL strike
and it was like - what was that, but it was too late. That Thursday, right after I called
you, was when I got the call.
Stan held his own free agent camp so that the players who didn't get chances in the
bigger camps had an opportunity to do it. 50 people showed up, from all over the
country. The most innovative camp
- I taped
the camp, sent the tape to all 3 leagues
55 teams. When was that, 84? Yes, right there it is. And some of them got picked up
as a result of this? Only one, my brother. I guess they had to have some body. Yea,
that was a fun day that day. That camp cost me 5 grand and generated so f a r
$200,000.00 in salaries for my brother.
That airplane that 1 bought would have made me $3,000 net profit a month, leasing it
out. I had a t least 20 hours of leasing every month for 350 a month a t $7,000, and my
payment was $1500.00. You were leasing it to? My contacts, my network. With you as
a pilot, you mean? No. It's a big plane. I hired my own pilot. When I'm doing
business all over the country I can't fly commercially. I three weeks, my charter bill
was 4 grand for using another person's plane 5 times. Then, you bought this. and before
the first payment was due they grabbed it back. Can they do that? No they can't.
Why do you think I've got a large lawsuit against 3 banks. One of the reasons they said
they did it was because it wasn't properly insured, but he had insurance. The other
reason they said, he took it to Florida. Now I don't know why you would buy $100,000
airplane and leave it a t the airport. Do you know why I was taking it to Florida? I
bought a place on a n island, another very good investment. Now they are suing me
because I couldn't settle because I got blackmailed 2 months later. They said I was
going to Florida to run away and hide. I was going to Florida to settle my property.
They had to come up with a reason so that's the reason that was around I guess. But,
Pete
brother works for Commonwealth National Bank. Plus, do you know
anything about United ChemCon? They are being investigated right now by the FBI and
Attorney General. Chemcon is the big local minority-held corporation that was doing a
lot of defense contracts
- it was associated with ISC.
They went under last Spring,
beginning of the summer, and there was a lot of criminal allegations made, none of them
substantiated. And I was connected with that. They sent a Board Member in to see me
a week before this happened. Why, I don't know. Is this Lancaster based. Yes, Jim
Christian owned it
- now I hear
rumors that I was tied to ISC and 1 am close to several
people in that organization. Why they sent someone to California to see me, I don't
know. They won't answer me. Who is this, the FBI? No, this is Chemcon. I said if
you ever come back or you have someone else call me, I want a $10,000 retainer fee.
Never heard from them since. Then, two weeks ago, Jim Christian called me while I
was in the hospital. That guy hated my guts for five years. Why, he called me, I don't
know. What did he want? I don't know. You didn't speak to him to find out? I spoke
to him, he said nothing. The same thing the Board Member said when he came from
California. Asked if I could go get ChemCon another building; asked if I would be
interested in saving the company from bankruptcy
- I was working with a
guy from
Belgium, they wanted me to talk to, a guy from DC and New York, a guy from the
Caribbean. I don't know what the hell is going on. Then I find out the Commonwealth
Bank went and nailed ChemCon. Commonwealth Meridian said Christian personally signed
for the $18,000,000 that was invested or lost of the governments money for these
contracts. I don't know. I am sick of asking questions and people lying to me.
You don't have any connection with that, other than you knew some people? No, I've
got their files, I got their financial statement, everything
- they wanted
me to do
something. But you're not connected with the company? You're not an investor? No, 1
sold my ISC stock June 8.
A lot of people were saying that ChemCon. which is a minority - Christian is a black
guy
- was getting all the minority government contracts because he was one of the
leading minority defense contractors around, and actually the supposition was
know how true it would be
- is that it was a front for ISC.
- I don't
It was, I'll tell you why.
Because when ChemCon was started, back to their inception, you look at ISC's book.
They didn't have any money. Well. the first thing ChemCon did, was they went and got
all that free money from the government and you look and see where that money went.
I bet you I know where it went.
This guy named Geurin, James Geurin. And I know that they were selling contracts
back. He runs ISC and he also has his fingers pretty deeply in ChemCon. He's the one
who started ChemCon, Geurin is the one who started it. Wasn't there some allegations
about a tie with Wedtack You bet. They were tied, you'd better believe they were tied
with Wedtack. The same guys in Wedtack were involved with ISC and ChemCon. ISC is
21
that an over the
exchange-.
ISC is a London Exchange. International Signal
and Control? I owned a thousand shares. I sold it when things started to hit the
Now they just did a multibillion dollar merger with a company in London
They probably think it is going to cover their tracks. You mean United ChemCon is a
local corporation. Yes, they went bankrupt as of this last 3 months. What was it,
$18,000,000 in liabilities? What they did was, they fronted all that money and started
the contracts, went bankrupt, now the government is stuck for $18,000.00. They weren't
paying employees, they weren't producing the product. they weren't paying their
unemployment and everything else. Did they pay the withholding taxes? No. It turns
out that Christian, who I have had a few dealings with, had a n office that would be
would be suiting of any AT&T

office. 4 or 5 cars, thousands
Amazing. Had these racquetball things in his
- let me tell you about Jim Christian now.
I know right now in this town's viewpoint, I stole money, I am insane, and I am a
lunatic. I tell you I will not condemn Jim Christian until he tells me to my face what
happened. I was framed and set up and I know (I see what you mean, your experience).
I don't know, maybe Jim Christian doesn't have the money. Maybe Geurin has it or
somebody else. $18,000,000 is a lot of money and he is broke because he lives with one
of my best friends,
I mean they don't have money. And, I would think that
if he took it, he would have something. You're pretty nice, Stan, to somebody who has
hated your guts for 5 years. I know what I am going through, a n d who knows, maybe
he was innocent too. Is this Christian you are talking about. Yes.
You were going to make copies of these. I can't make copies. I can f a x them to you.
I will make copies for you, in fact, what I should do is get everything copied for you.
Well, no, because that is a tremendous expense. I would rather, if you have the time, or
can stick me in the corner somewhere, maybe say, this and this, a n d this, I a m sure we
can eliminate half of it. O.K.but you should tell me what you want and I will make
copies. I just don't want this stuff to leave my hands anymore. I can get them to you
overnight. Well, there is nothing we can do overnight. I can't elevate your problem as
far as being out of the corporation
- oh, I thought
you were going to give me a check
before you leave. So, anything that I would be involved in is going to be long and
drawn out; it is not going to be a n answer to your immediate problem.
I know, but I had to get someone involved. I had to get authorities to start taking
action for me.
the FCC
- well, he is the one I am talking about mostly.
They said
they were sending 2 guys up here last week for 2 days. Did you talk to them about
what was going on? How did you happen to talk the FCC. I was just trying to get m y
money back. They promised me my money and they didn't come up with it. So, I called
. If
them. So basically, you have

would be well,
------
they came there, I think their attitudc
no, they were curious as to some of the other things that were
going on. I talked to them a couple of times. They were curious for one thing,
Kauffman wanting to take my investment and putting i t in the stock market and working
it for me, they were curious about that. They were curious about the allegations of
Stan's alleged insanity and forcing him out of the corporation, and I think they were a
little confused about why they would accept liability for the money if it wasn't there
liability. That would be a question that I would ask. I think that aroused their
curiosity, but he also said that they have never been checked, and they are about due,
so we might just as well go up there and dig into it and find out what was going on.
As f a r as I know, that is what they did, what they call a compliance examination. I
don't know that they were there looking
-. Sincc your allegations were made, I am sure
they looked into some items like that, but I think basically it was just a compliance
examination. What did they find? I don't know. They were there though? There was
two people supposed to be up there. Were they there last week? Well, it was recent,
the report isn't even written, but the report I think will be more on the lines that they
don't have a client complaint form filed
- compliant type examination.
Proper
procedures, etc.
I am still interested as to how you wcrc alerted to it. I have yet to get it
- I was
coming down as an appointment last Tuesday o r Wednesday, which ever day, it was the
next day I called you. I had an appointment here i n Lancaster. I had gotten a call
about 4 3 0 in the afternoon from the Phila office, and my supervisor down there said
there is a newspaper clipping of your break-in of the Financial Management Group. I
don't know whether to make a n investigation out of it or not. It seems there are some
securities involved. The only 2 articles that appeared are right over there and none of
them say anything about it. They just know my name, right? They just knew that I
was involved with the company?
- it doesn't
say anything about securities there.
Nothing a t all? Then how it came to our office I don't know, unless somebody sent it.
Even if they sent the articles, there is nothing i n there to indicate who
- they just
called me an ex-worker. That is the interesting thing about it. "burglary, theft,
unlawful restraint, robbery, unlawful use of computer, criminal mischief, and terroristic
threats." I've never seen the article. There it is, pull them down. No, that's alright.
They were supposed to send it up to me and they didn't. I'm leasing that building and
accused of burglarizing his own building.
See, he called me and said, you are going down to Lancaster. See if we should start an
investigation. Stop up to the
-- exemployee.
Christian, I think was the arresting
officer? Mathias, they said Lancaster Detective Mathias. He's not, he's Manheim Twp.,
fortunately I found that out. I called Township 2 months ago and they didn't help me.
Then they throw me in jail when my partners call.
So anyhow, I stopped up that evening, Tuesday or Wednesday night, the next day I called
you but did not get you until Thursday or Friday, so that is my association. They were
supposed to send up the newspaper clipping or whatever it was they had. But the only
thing I know is that your name was associated in our office computer file with Financial
Management Group. Your not telling me anything new. But you see I was supposed to
have this. Why I don't, I don't know because they were supposed to send it up. But
the state in their own way to save a .40 postcard, they have a messenger service to
Harrisburg. So, its alright if you get it in the mail, like if I was in the office this
morning and put it in the mail before 10:OO it goes to the central office and gets
distributed
- then the next day i t goes down and would
be there the next day. But if
you miss that 10:OO mail, it don't leave our office until the next day then the next day
in the central file. then somebody drives it down to Philadelphia. I should buy you
guys some stamp. I had to deal with the State that long so you know these are just
little quirks that keep popping up every now and then.
1'11 tell you an interesting part that I had when I went out to view - they had to
- a n d Manheim Twp. called in t o Hartlett as I was there.
I was there to
get property returned to Stan, and Hartlett started going through things and paying a lot
of attention to what was there, and had already admitted wasn't his. There was a lot of
correspondence there, he was very interested in, and the policeman even came to my aid
and made him not be nosey. even its yours or it isn't, and he released everything to me.
Do you know what I took out of the office was on the books, everything that I wanted
to see. Did they let you keep that? No, no, in fact the inventory from the service
warrant, just about everything on here is Stan's files, even labeled as such. Then I
found a
checking account, K & H Enterprises, Kauffman-Hartlett Enterprises,
they returned that to Kauffman. K & H, what do you think that stands for? Kauffman
and Hartlett. Well, that's what the initials stand for but what type of business? I
never heard of it. You don't know what it would be? I can imagine what it would be.
A brokers business somehow? It's something fishy. I can't remember the bank, I think
it was Hamilton Bank., Probably Hamilton or Farmers First.

In looking a t these, the only thing I can say, as far as I know Philadelphia is the only
information they had. Now maybe i t came in anonymously. I know a lot of people in
Philadelphia. This involves Financial Management Group or something or involves
securities, because the guy I talked to said, you know, should we be involved in it at
all? Ask what it is, see if there is securities involved? And that's what I did and
that's when I came up Mathias and of course he mentioned
Well, who mentioned to you about medicine. I t wasn't Mathias; Seigler was involved.
Why, how did they get wind of that? Harlctt and I were there and Hartlett was talking
!
about you taking your medicine. What medicine?
, that's a bunch of crap.
That's what Hartlett was telling him. And Hartlett was saying is he taking care of
himself and all of this stuff. That son of a bitch. He is really painting a nice picture.
Well, the cops didn't really buy it because they asked Hartlett to leave and they gave me
the information that they told Hartlett they weren't going to give me.
Yea, well they mentioned the things that you had taken, a couple of items, that they had
given back and allowed you to have them. They gave all the files back to FMG before
we were involved and then he gave me the personal correspondences, but they kept his
camera. Apparently, Stan was doing the policeman's work when he was in there the
night he was accused of burglarizing the place. He took pictures of all his files i n their
office and they said they had better keep that.
This is June 30th. It is my files in their office. That's the night I left. Who's taking
the pictures? A friend of mine. You were with someone? This was 3 o'clock in the
morning. Oh, you weren't arrested on the premises, were you? No, but this is when I
was in the office. This is when they stole my files out of my locked doors. He was
arrested September 3rd I believe it was
- this is June 30th.
They don't know he was in
there then, I guess. These aren't the films that you are talking about? No, the films he
is talking about I took of my files again in their office, and attorneys say they didn't do
anything wrong
- explain why 1 was in jail
for 5 days.
This is the stock certificate book here, this big black book? Yea. You are still
connected with the company here? This is June 30th. The funny thing is, even the
second one is not breaking in
- well, the girl left me in and she's a friend of mine.
He
is still President and a t the time he was still Secretary I guess. I don't think the police
feel too awfully strong that they have a burglary type charge. I know. Well, I tell you
what, they abused me the night they arrested me.
Well, the cop that picked
me up here left me ride on the front seat and everything. When I get to Township,
handcuffed me, put my hands to the belt, threw me in a cell, bounced me around the
car. They wouldn't even listen to who I was. I had all the documents to hold them
that I was lease holder of the building
- wouldn't
even look at it. They didn't ask me
anything. I know why they a r e acting nice now. They are going to hear from my
attorney.
I don't know who even made the complaint, whether it was the girl who made the
complaint. You were arrested the next day? No, that night. I told 5 people that I
wanted to arrested that night: I had to. But then somebody had to call the Manheim
police. Do you know what they did? They called up the police that day and said 3 days
previous t o that, that I made a bomb threat to that building
picked me up for. Oh. really?
- that's
what the police
That's what the police picked me up
for. Then, while I was there they charged me with the burglary. They initially picked
me up for a terroristic bomb threat, that took FMG three days to report, they couldn't
even remember when the phone call was, and the person that reported it, I don't even
know who she is
- never saw her, never heard of
her. You were a t the premises there
roughly what time? I went there about 10:30 Thursday night; you were there an hour?
Not even that, about a half hour. I left and dropped off at
, had a drink,
and got a girl to take the car I had, I borrowed somebody's car because my cars were in
New Jersey
- I flew back,
and got this girl to drive me here and as soon as I pulled in
Conestoga police were right behind me. I said, great, they're here. And when the
Conestoga Twp. cop, I said, let me take all these files with me so I can show you guys
who I a m and what I was doing. Well, they just took everything and threw me in the
26
cell and that was it - arrested.

,
Well, let me get started. I didn't read these letters yet. Read that one letter right
there.
That's right we have that other thing now. Yea, he's being sued civilly f o r this office
furniture here which was purchased from FMG. But FMG then tells the Office Supply
Store that he has not connection with us. When they have my suite of furniture in that
building. Oh, that what the pictures, is that your personal furniture? You bet. I
purchased this in June to go down to Stone Harbor; see the movie that I was working
on, FMG was to get 15% of the profit f o r my endeavors down there. This was purchased
as a n agent of Financial Management Group.
admitted
by Guerin
company
by Ernest Schreiber
andTim Mekeel
New Era Staff Writers
The company that once held

much of the wealth of ex-lancaster defense contractor James H.
Guerin has pleaded guilty to
racketeering and agreed to pay
the U.S. government up to $4.4
million for its wronedoine.
In a plea agreemfnt d z e d May
15, Parent Industries Inc. says it
will pay t h e government
$2.376.000 in cash and -forfeit
its
- - - .. .
.rightsto a $2 million bankescrow
account that the Justice Department has claimed
The agreement. neentiatrd hv
assistti5 U.S. .2itorne!- liobcyt
E. Coldman and Gucrin's attorneys, is the first acknowledgement of wrongdoing by a Guerincontrolled business since allegations were raised about the
: financial conduct of his defense
~~~-~
hus~nesscmplre two years ago.
The docunicnt has glvcn rise to
u'idcspread succulation that
Guerin himselfinay be negotiatinga plea agreement.
When an FBI agent was asked
about that possibility in federal
court on Wednesday, prosecutor
Goldman immediately objected
to any discussionof the topic.
Guerm's attorneys did not return New Era telephone requests
for comment. Guerin, who was
reached at his present home in
Naples, Fla., declined to comment on the advice of his attorneys, but said he would ask his
attorneys to return reporters'
phone calls.
this
In testimonv
- . " rarlv
. ~
" ...- wpek
..- -..,
an Internal Revenue Service
criminal investigator and FBI
agent charged that Guerin directed a $1 billion contract fraud
-and, with his brother-in-law, Carl
Jacobson, illegally shipped arms
to South Africa.
But the guilty plea from his
holding company is limited to one
general charge of racketeering
by the corporation and does not
include Guerin nersonallv in its
~.
provisions.
One key section, however, does
specify that the Justice Department may continue its investigation and prosecution of other individuals and companies involved
in the alleged racketeering.
Guerin founded Parent Industries Inc. in 1982 as a holding
comoanv for h ? ? c i n n r r - - L ,>
L A W OFFICES
CRAIG V R U S S E L L
GARY G
KRAFFT. G R U B E R & H U B E R
~
1729 LlTlTZ PlKE

PENN5YLVANdA , 7 6 0 , - 6 5 6 5
KRhFFT
J O N M GFIUDFR
dOHN E
*USER
(717)569-5383
CHRISTINA C. HAUSNER
October 2, 1987

New Danville Pike
Conestoga, PA 17517
Re:
Financial Management Group, Ltd. Property
Dear Mr. Caterbone:

I have been retained to represent Financial Management
Group, Ltd. FMG has advised me that you are in possession of
several items af FMG property, which include but-are not limited
to the followingi
1.
Zenith ZF 171 42 Lap Top Computer, Serial No. 710 CE

0322.
2.
A.C. Power Adaptor for above listed computer.
3.
Parallel printer cable.
4.
Royal Adler FAX machine, Serial No. 1731379.
5.
Internal 300/1200 Band modern, Serial No. ZA-170-4.
6.
Soft carrying case, ZA-170-2.
7.
Battery pack, ZA-170-1
8.
Premier Technologies, "Lite Disc Drive", 10 MB Disc.
9.
Various business records and office supplies.
Unless the above items, along with all other personalty of

Financial Management Group, Ltd. in your possession is returned
in original condition to FMG within the next ten (10) days, my
client will take legal action by filing an action in replevin to
recover its property, and/or to collect damages for the loss of
its property.
. . ,,
TO:
Sta
N O T
-I C
-E
-
Take notice that you are not licensed nor privileged to

enter or remain on the premises at Financial Management Group,
Ltd., 1755 Oregon Pike, Eden Park 11, Manheim Township,
Lancaster, Pennsylvania, 17601, which premises are the-and
exclusive property of Financial Management Group, Ltd.
P
If you enter or remain, or attempt to enter, gain entry or

break into said premises, you will be committing the offense of
defiant trespass as set forth in the Pennsylvania Crimes Code,
Act of December 6, 1972, P.L. 1482, No. 334, Section 1, as
amended by the Act of June 23, 1978, P.L. 497, No. 76, Section 1,
8(\.-,
-7
18 Pa.C.S.
Section 3503, and will be prosecuted to the full
extent of the law.
Having been advised, govern yourself accord-
ingly.
!I
.7
RUSSaL, KRAFFT. GRUBER
HUBER
~anagement~ro&, Ltd
1729 Lititz Pike
.Lancaster, PA 17601
(717) 569-5383
Date:
October 2, 1987
Mr. Stanley J. Caterbo

October 2, 1987
Page 2
Please note that in accordance with the trespass notice

served contemporaneously herewith, you are prohibited from enter
upon FMG premises. Therefore please have your attorney contact
me to arrange the time and place for return of FMG property.
cc:
Mr. Robert Kauffman
In the Court of Common Pleas

. CATERBONE
STANLEY J
WAIVER OF ARRAIGNMENT
Ocbbber 5, 1987
AND NOW,
, I, the undersigned defendant, hereby acknowledge

that I am represented by the undersigned attorney who is the counsel of my choice, that I am charged with the crimels
bf
theft;--qirni'nal mischief;. qnd.~unlawfuldse of computers
~.
that mycasels
before the Criminal Division of the Court of Common Pleas of Lancaster County,
, . . will be called-for!trial
,
'Pa., a t thekourt House, Lancaster;Sa., on
i
~1
i
'
,~
'!
'
. . Novernkr 25, ,1987:
1@86
(trial date)
9
, and +at I may file an omnibus pretrial motion at any time but not later than
,-.
.
~ ~ q v ~ m b25,
k r 1987
, \, .,.
(303;:+j.s f
r~j
,.
ojl,! ,-.'y:.,,;,J
"$, . ,
January
~'tqidenta&$mt !kay commence d;&very aiany time but not later than fourteen (14) days from
'; ; i d j i ~ o arra&r&eit)
f
'
'.
,,
:,:;,.\
, {:'
..-;. :;.
<'
been
,$
/(p;e,of
, ' +
arraignmetit)
*,
idy~d-d
.'
-,;
9 f . d myrights by my undersigned attorney, I do hereby plead=/
said ehargeii,;and
, . , , , 1.d; l$iiby w'gi+qirrai&ment
... ;, '
[; ,
.
. .
r*
on said charges. 1 further do hereby authorize my undersigned at-
I Not d$ty o i m y behalf

of said charges.
....
torney t o eitkr a bleiofi%@

;
4';'.
2..
'
.
,
Not Guilty t o
<
i
\.~
Defendant
STAXTLEY J
. .CATERBONE
,.
,.,
. . ,
~~~~
.A
rL$
.-$
*:+',,
yi
'
7.
.&'
,.'
..
Attorney'for Defendant
ROBERT D. BEYER
By signing the above Waiver of Arraignment, the undersigned attorney for defendant hereby certifies thpt he has
given said defendant all of the advice required for an effect~veand valid walver of arraignment.
Robert D. Beyer
Attorney for Defendant
1 1 0 81 Kinp S t r e e t . Lancaster, PA
Address
17602
344-7204
Telephone No.
CLERK OF COURT - WHITE COPY

DISTRICT ATTORNEY
PINK COPY
DEFENDANT-YELLOWCOPY
:6 2
REMIT TO
FW-tb7s U n r r
...
301 NORTH QUEEN STREET

LANCASTER, PA 17603
(717) 393.3941
'
- JOB DESCRIPTION
NEEDS
TYPESETTING
NEGS 6 PLATES
::n
,.
NEEDS
POSTED
.. ,,
BINDERY
.. .
7 ,
OTHER
~.
',<:
.
POSTED
' 5 .:
, ., L
-
ORIGINAL ARTWORK RETURNED TO CUSTOMER
ARTWORK
YES
. NO
NEGS 61 PLATES
YES
NO
OTHER
SERVICES
'I
Sir Speedy Centers' prices are calculated on a "cash wlth

order" basls. Therefore, all orders are on 'COD' cash on de.
livery basls, unless credit is already established by an acknowledged credit application. Terms on established credit
* accounts: Net on presentation. Balances unpaid after 30 days
from date of Invoice are subjec't to a service charge of lt/2 %
per month, or maximum allowed by law, if different, together
3 with expenses incidental to collection, including reasonable
attorney's fees.
FILED IN
SUB-TOTAL
w / -.2.G
DEPOSIT
BALANCE DUE
P E G PAY ALL R E M l n A N C E S TO THE
L A W OFFICES
OLD. BEYER & HOMSHER
:!
'
7 H N U'. BEYLX
EAST KING STREET

HARRIS C ARNOLD
(IWIPMI
AVID G. HoMsHER
lOHN WILLIAM BEYER
ARNOLD. BRKKEX BEIEII G BA

tI957.19761
LESLIE GORBEY
ROBERT D. BEYER
IAMES P COHO
llPlSlqd61
& HUYER
1729 L i t i t z Pike
Lanczster: PA 17601
Dear C r i s s :
as well as t h
October 2 , 1987
Mr. Caterbone on
a r y Hearing t h e
:at t h e su.ggestion of t h e District Attorney's Office,

R e s t r a i n t , and T e r r o r i s t i c T h r e a t s were d i s m i s s e d
of t h e f t , c r i m i n
r r e r . Mr. Caterbone w i l l now be f a c i n g t h e c h a r g e s

e i and unlawful u s e of t h e computer.
With r e f e r e n c e t o your l e t t e r o f October 2nd i n which you set

f o r t h n i n e ( 9 ) items belonging t o Federal Management which are a l l e g e d l y i n
M r . Caterbone's p o s s e s s i o n , I f e e l i t necessary t o b r i n g t o your a t t e n t i o n t h a t
&. Caterbone h a s s e v e r a l items o f h i s p e r s o n a l p r o p e r t y i n t h e p o s s e s s i o n of
R3G. Those items i n c l u d e h i s desk and credenza , bookcase, s e v e r a l c h a i r s and
t a b l e s , a s o f a , f i l i n g c a b i n e t g p i c t u r e s , a s s o r t e d achievement plaques, p l a n t s ,
o e r s m a l f i l e s andmisce1lan;ouscomputer equipment. O f c o u r s e , we w i l l also
assert our. demand f o r t h e r e t u r n o f t h a t p r o p e r t y i n t h e same manner which you
have a s s e r t e d y x r d e m a n d o f October 2 , 1987.
Obviously, t h e r e a r e f a r more i ~ p o r t a n tt h i n g s t o be r e s o l v e d
t h a t h e t r a d i n g o f computer equipment, p l a n t s and p i c t u r e s ! I a m n o t sure t h a t
M r . Caterbone is i n a p o s i t i o n t o s e t t l e any d i s p u t e s , p a r t i c u l a r l y w h i l e t h e
c r i m i n a l charges are s t i l l pending a g a i n s t him. I t h i n k i t might b e s t be approp r i a t e t h a t we both sit down with o u r r e s p e c t i v e c l i e n t s and f i n d o u t what t h e y w i l l
be s a t i s f i e d with i n o r d e r t o s e v e r any b u s i n e s s r e l a t i s n s h i p c u r r e n t l y e x i s t i n g . It seems t h a t it would be f a r more economical t o work toward t h a t end
r a t h e r then t o n i c k l e and dime each u i t h p e t t y property c!.aims.
a g e tcio
Christina L. Hausner, Esquire
Cctober 9, 1987
If you have any s w e s t i o n s as to how we might get this ball

rolling, I will gladly listen with attentive ears. Thank you very ~ u c hfor your
continued cooperation in the above.
Very truly yours,
ARNOLD, BEYER & HOMSHER
Robert D. Beyer
RDB/reg
cc:
Stanley Caterbone i/
A R I ? ~ T R O D U C T ~ GTO
~ J IKTERCON SPECIAL SERVICES INCOk\PORATED
The o f f i c e r s a f I c t e r c o n r e a l l f o r m e r S p e c i r ! \ g e n t s o f
t h e F . B . 1.
T h e i r combi.:ed e x p r i e n c e i n g o v e r n m e n t i n v e s t i g a t i v e and p r i v a t e s e c u r i t y f i e l t ! : : t o t a l s o v e r 100 y e a r s .
The
members o f I n t e r c o n ' s i r ~ v e s t i c , ; ., i v e s t a f f h a v e a1 1 h t ~ dp u b 1 i c
l a w enforcement and p r i v a t e i n s t i g a t i v e e x p e r i e n c e and t h e y
i n c l u d e C e r t i f i e d P u b l i c A c c 3 ~ : i a n t . s w i t h b o t h b u s i n e s s and
I n t e r n a l kevenue S e r v i c e e x p e r i e n c e .
We h a v e c o n d u c t e d s u c c e s s ! i i l i n v e s t i g a t i o n s f o r some 3 f
t h e m o s t p r e s t i g i o u s l a w f i r m s . a n d some o f t h e l a r g e s t c o m p a n i e s
i n the world.
T ; ~ e j e i n v e s t i g a ' t i o n s have i n c l u d e d 3 r e - t r i a l
i n v e s t i g a t i o n s o f %any t y p e s i . ! t . l u d i n g c o n t r a c t v i o l a t i o n s ,
fraud, t o r t s , d e f a l c a t i ~ n s , l . i > e l s , embezzlements, p a t e n t and
c o p y r i g h t , a r s o n a n d i n s u r a n c e r e c o v e r i e s . He h a v e h i d s u c c e s s f u l i n v e s t i g a t i o n s i n v o l v i n g c.!rporate a c q u i s i t i o n s , takeovers.
pel-;onal
s e c u r i t y and executiv: personnel r e c r u i t m e n t .
;.le n a v e
q u a l i f i e d F.B.1.-trainc?
~ o l y c r a p he x a ~ i n e r s , a n d we o f f e r t h e
usual f o r e n s i c science bervice;,
s u c n 2s d o c u m e n t e x " a i n a t i o n ,
handwri king a n a l y s i s , etc.
6,.
,i
d,
,);-ov j L s d d j , i i c e t - . . s < ; g t j 6 ,
ti s e ~ v i ; e ; i ~ r !..:.,I : ..I c
o f f i c i z i s , c o r p o r a t e o f f i c e r s ;rid p r o m i n e n t f i g u r e s i n t h e
e n ~ e r t a i n m e n tf i e l d .
We h a v e c o n d u c t e d d e t a i l e d S e c u r i t y s u r v e y s f o r some o f t h e
p r i n c i p a l banks, c o r p o r a t i o n s , u n i v e r s i t i e s and governmental
agencies i n t h e U n i t e d S t a t e s t o a s s i s t them i n enhancing t h e
physical sesurit y o f t h e i r prenises.
F o r l a n d l o r d s a n d l e a d i n g r e a l t y management f i r m s we h a v e a l s o
conducted such s e r v i c e s as - s e c u r i t y s u r v e y s , b u r g l a r y i n v e s t i g d t i o n s and work up o f t e n a n t s " p r i m a r y r e s i d e n c e " t y p e c o u r t cases.
( ,
\r
O u r o r g a n i z a t i o n was e s t a b l i s h e d i n 1 9 7 2 a n d i s l i c e n s e d a s
p r i v a t e s e c u r i t y a g e n c y b y t h e S t a t e s o f New Y o r k a n d C o n n e c t i c u t .
We a r e b o n d e d a n d f u l l y i n s u r e d .
EAST 42N0 STREET-SUITE 1045.NEW YORK. NEW YORK 10165. TELEPHONE (212) 370-4430
TELEX ?36 520 (TATS)
?Gfi
M i c h a e l M. O ' R o u r k e .
St.. J o s e p h ' s C o l l e g e , A.B.,
U n i v e r s i t y , M.B.A.
F . B . I . 1942-1965, L i a i s o n and
New YTF~
Pub1 i c R e l a t i o n s S u p e r v i s o r .
Director o f Security, A l l i e d
S t o r e s 1965-1968.
D i r e c t o r c f S e c u r i t y , American B r o a d c a s t i n g
Company i 9 6 8 - 1 9 7 6 , r e o r g a n i z t d a n d d i r e c t e d t h e p l a n t a n d
After
p e r s o n n e l s e c u r i t y f o r ABC a1.d i t s many a f f i l i a t e s .
r e t i r e m e n t f r o m ABC, c o n t i n u e d a s t h e i r c o o r d i n a t o r o f
s e c u r i t y f o r World Olympics a t Innsbruck and Montreal.
Paul P i c c o t t i .
George k a s h i n g t o n U n i v e r s i t y .
University
o f S c r a n t o n , M a j o r i n E d u c a t . ~ o n a n d I n d u s t r i a l Management.
E x p e r i e n c e o v e r t w e n t y y e a r s i n e l e c t r o n i c computer and
c o m p u t e r s e c u r i t y f i e l d w i t h RCA C o m p u t e r D i v i s i o n a n d MSC
Computer Systems, I n c .
Has s e r v e d g o v e r n m e n t a g e n c i e s a n d
b u s i n e s s f i r m s i n c l u d i n g bani:ing, t r a n s p o r t a t i o n and i n s u r a n c e
t o r e v i e w and e s t a b l i s h s e c u r i t y f e a t u r e s f o r b o t h computer
programs and computer o p e r a t i o n s .
111 1 LKLUN
SPECIAL bERVlCES, INC.
STAFF QLIAL . FICATIDNS
Frank R. Ger,rity.
S c r a n t o n U n i v e r s i t y , B.S. i n
a u s i n e s s A d m i n i s t r a t i o n , G e o r q e t o w n U n i v e r s i t v . ' LLB.
F.B.I.
1950-197:.
S u p e r v i s o r M a j o r i h e f t Squad, c r i m i n a l D i v i s i o n .
C o o r d i n a t o r Organized Crime S e c t i o n .
F.B.I.
Polygraph
Coordinator.
D e m o c r a t i c N a t i o n a l C o n v e n t i o n , New Y o r k C i t y
1976, o r g a n i z e d ayd s u p e r v i s e d F.B.I. s e c u r i t y d e t a i l and
managed l i a i s o n w i t h a l l o t h e r a g e n c i e s .
John J . Danahy.
G e o r g e r o w n U n i v e r s i t y , A.B.,
Columbia
linive-y
LLB.
F . B . I . 1942-19.63.
B o t h C o u n t e r 1 . n t e l l i q- e n c e
and C r i m i n a l S u p e r v i s o r .
Director o f Security, National
F o o t b a l l Leasue 1968-1980.
A u d i t e d s t a d i u m s e c u r i t y f o r 28
member t e a m s .
S u p e r v i s e d a1 : s e c u r i t y a r r a n g e m e n t s f o r 1 2
S u p e r B o w l s , i n c l u d i n g game s i t e , t e a m r e s i d e n c e s a n d p r a c t i c e
s i t e s , p r e s s and o f f i c i a l s ' p e r s o n a l s e c u r i t y .
Lectured American S o c i e t y I n d u s t r i a l S e c u r i t y and I n t e r n a t i o n a l
A s s o c i a t i o n o f Campus Law E n f o r c e m e n t A d m i n i s t r a t o r s .
Has
o r g a n i z e d and s u p e r v i s e d m a j o r s e c u r i t y a u d i t s p e r f o r m e d b y
i n t e r c o n i n b o t h p r i v a t e and p u b l i c s e c t o r s .
.
; i o m a s ?i.,iolan.
St. t.. . : I I I I ' S U n i v e r s i t y , 6 . S . - i t , > i i 5 . : . 1 : $ ~
Administration:
S t u d i e d e l e c t r i c a l e n a i n e e r i n q Mantiattan
L 3 1 1 ege, M i s s i s s i p p i S t a t e a n d ~ e o r ~ i a - ~ e c hf o. m m u n i c a t i o n s
O f f i c e r , U.S. A r m y .
N.Y.C.P.D.
1946-1951.
F.B.I.
1951-1959,
Criminal Supervisor.
President, Tolan Investigations, Inc.
1 9 5 9 - 1 9 8 0 , i n v e s t i g a t i v e and s e c u r i t y c o n s u l t a n t s s p e c i a l i z i n n
i n i n d u s t r i a l , r e t a i l and r e a l t y problems.
Joined Intercon
1980. P o l y g r a p h e x a m i n e r .
Supervises and conducts a l l t y p e s
o f i n v e s t i g a t i o n s and s e c u r i t y s u r v e y s .
Specializes i n investigations involving r e a l t y matters.
Member o f N a t i o n a l Law
Enforcement A s s o c i a t e s and A # l e r i c a n S o c i e t y f o r I n d u s t r i a l
Security (holds t h e i r C e r t i f i e d Protection Professional Rating).
New Y o r k C i t y F i r e depart men^ a p p r o v e d F i r e S a f e t y D i r e c t o r .
60 EAST 42NO STREET-SUITE 1045. NEW YORK. NEW YORK 10165. TELEPHONE (2123 3704430
TELEX 236 520 (TATS)
October 12, 1987
Mr. Robert Byers, Esq.

110 E. King Street
Lancaster, PA 17603
Dear Mr. Byers:

Please be advised that I am purchasing real estate currently
owned by a client of yours, Stanley J. Caterbone.
At Stan's
request, I have scheduled settlement for purchase of the premiss
located at 433 W. Marion Street for 2 : 0 0 PM on Friday, October
23, 1987.
Settlement will take place at the Pioneer Agency,
located at 44 N. Lime Street in Lancaster, PA.
Stan indicated to me on Friday, October 9, that he probably would
not represent himself at settlement. Therefore, this notice is
sent to you assuming you will be representing Stan at
settlement.
I have enclosed a copy of the "Agreement of Salen.

change I foresee is that an Addendum to the Agreement
signed, in that the seller will pay two point. rather
transfer taxes.
The difference between these two
$32.18, which I will pay at settlement.
The only
will need
than both
costs is
By law, I need a
One other condition still needs resolved.
certificate from the City of Lancaster which states that the
property meets all City Code requirements. Section 6 (b) requires
that the responsibility of this lies with the Seller. Therefore,
I will insist on reimbursement for all fees and work performed to
bring this property to Code standards. The fee for the City Code
inspection is $50.00, which I paid today, and there is some
electrical work needed which is scheduled for later in the week.
I have enclosed a copy of the "Agreement of Salen and a "good

faith estimate" which I have revised to reflect the changes in
the Agreement of Sale. Additionally, I have included a Notice of
Code Violations for the property.
I will be out of town until October 19, 1987. Upon return, I
will contact you with any additional information needed.
D
L
P
~
/
B
Sin erely,
anes D. Warner
w,reaid(e> D
~ 01
K
velaware
NA
C R E D I T ACCOUNT CENTER
COLLECTION DEPARTMENT
P.O. BOX 8 9 2 3
bJTLMINGTON, DELAWARE 1 9 8 9
'
10)
833-3012
CONTACT:
I
M FERRIOLA
OCTOBER 28,
@@
CoreStates Ban
of Delaware H A
1987
STAN J CATERBONE
2 3 2 3 NEW D A N V I L L E P I K E
CONESTOGA
PA
17516
ACCT.
NO.
BALANCE
CREOIT L I M I T
AMT PAST DUE
4261620027015
$3559.27
$3500.00
$280.00
....
..
DEAR STAN J CATERBONE
T H I S O F F I C E HAS ATTEMPTED TO REACH YOU B Y TELEPHONE I N ORDER

D I S C U S S YOUR S E R I O U S L Y DELINQUENT ACCOUNT.
(3
WE WOULD L I K E TO SPEAK TO YOU ABOUT T H I S , AN0 WE REQUEST THAT

YOU TELEPHONE T H I S O F F I C E I M M E D I A T E L Y A T THE NUMBER SHOWN
ABOVE.
C O L L E C T I O N DEPARTMENT
C R E O I T ACCOUNT CENTER
CD8Y0,
t.,c
A CoreStates Bank
Judge tells Guerin to pay $189 millic

Fraud payment would go to two Ferranti subsidiaries
-
h a d l a i l c i l t n r u ~ ~ p l y ~ n l o r r nbut
~ti~
e,t~ ~all, of ~ c r r a ~ t , . ~
" " t i an nccounl of any profitr
to backuplllsrerslolluft~bmfs
<ourl r l a i m s a C a l n s t ~ u ~ r i n ,
mndetllmuyhtheallepedfraud,
C a r i # n ,who buill l n l r r n a t ~ o a Jartlce l l a f f m n n said Cuerin a" ("II Fcrranla who else was
Br8tish iustlce < d a y ur. a1 Slilrial & Contrnl mtcl an hacl fclilrd to explain what h a p in'o1"edinlhrsrhrme.
deren former L ~ ~ I C ~ S dc.
U : ~ WOrld~idrconelumriatrdllrlng p ~ n r dto money mlsring fmm
Gu*rin, i n a brief telephone
ienrcronlrarlor
H G L S C . th? I!IHUS. had t r . ~?haiged
the accounts of ISC ~
~ ronversatlon
~
fmm
h hi, hame
~
n n to pay SIW million to lr,,
lalu 1989 with rhratini: F ~ ~ C . Z I plea ~ t d and
.
ISC ~~~d~~ PLC
Naples. F I ~ , said he was una~
~
~
~
~
,ha, hr~
t 11. ia nrltish
~
~defense
b
rorpol
~ a- ~
two
d of, the~
~
~ in
~ hi; ~ ware of the court deciaon. ~e
r e i c r r d calls t o his
legedlydrfravde~l.
Ilsn, out of an rstimafcd $350
conplomeratc.
High Coud Jusl8ee MI. IPII~
m ~ l l ~ o n r l i c n l h r t w o c o n ~ p ~ ~ n i In
i s addition to repaying the Joseph A. Tate of Philadelphia,
m a n r c ~ ~ r tGr UdC ~ ~ ~ drnial
,'S
of m r r e e d
m8srxnp manry, the judge
who could be reached immedir e i p ~ n s l b s l # l yfor the ollcgud
Brlthrll press RCCOUII~S i m d t i ~ e i i nmust pay u n p ~ e i t i o d a t e l y f o r e o m m m l .
frauds brrruae, h r raid, Gaerin t o d a ~ ' s d r r i s ~ o n r r r u l r rsome.
d
1lrmn8cs and rorlr, give ~ e r F c r r a n t i a t t o r n e y .
had
%*fmedschrelber
sIBIIW~I~~
said. Guerin must givc Fcmmti m account oral
~~8
'
"~a ' m d m
lawl the company's
~
s"'Lthal
inheclted subsldlar
ieswhose value was grn=ls i n
fldted by fake dcfmse c o n
~~t~~~~ 1 0 ~ 4md 19m,
F~~
rant, claimed, i t p a d
s4i0
man c o m p a n ~ r rf n r u
flcr~llarurrontrarts
When queslloned
contracis. ~
~
rin yrvc " n a n - a d m ~
"dc"ials." lluL no1 a n
wha'lladacrurred
~ ~ ~W C U
~ E RbI I
LANCASTER
NEW ERA
114th Year-No. 35.455
METROPOLITAN
LAWCASTER. P A ,MONDAY, JUNE 18,1990
w-.r-
s,m.W.6+
Residential
Appraisal
Specialists
Inc.
147 N. Shippen Stre

Lancaster. PA 1760
October 29, 1 9 8 7
Mr. Michael Caterbone
Mr. Stanley J . Caterbone
HD 1 New Danville Pike
Conestoga, PA 17516
Dear Sirs:
We have been requested by Parent Federal Savings Bank to make

periodic inspections of your property at KD 1 New Danville Pike.
~
Within the next

appointment.
day
or
so we-will call
Thank you for your cooperation.

Cordially Yours,
you
to
set
up
an
LAW OFFICES
AIINOLD. BEYER & HOMSHER

l I 0 EAST KING STREFT
LANCASTER. PA 17602-2876
OliN W. BEYER
l i l i i 394-7204
,AVID G. HOMSHER
l O H N WILLIAM BEYER
LESLIE GORBEY
IAMES P. COHO
,1919-I9861
ROBERT D. BEYER
2323 New D a n v i l l e P i k e
Conestoga, PA 17516
Dear M r . Caterbone:
I am e n c l o s i n g h e r e w i t h your copy of t h e waiver of a r r a i g n m e n t
I r e c e n t l y f i l e d on your b e h a l f . Accordingly, you may now d e l e t e t h e
scheduled a r r a i g n m e n t from your calendar.
which
I a m i n t h e p r o c e s s o f p r e p a r i n g a n i n f o r m a l d i s c o v e r y r e q u e s t t o be
s e r v e d upon t h e L a n c a s t e r County O f f i c e of t h e District A t t o r n e y . A s s o o n
as I have r e c e i v e d a r e s p o n s e from them, I w i l l be i n touch w i t h you i n o r d e r t o
schedule
a m u t u a l l y c o n v e n i e n t d a t e and time t o d i s c u s s o u r p o s s i b l e d e f e n s e s .
,-..,
ARNOLD, BEYER & HOMSHER
Robert D. Beyer
RDB/reg
Encl .
Ine Last uay to t l l e an Appeal lrom this Ueterr
NOTICE
~ O M M O N W E A L TOF
H PENNSYLVANIA
CEPARTMENT OF LABOR AND INDUSTRY
OFFICE OF EMPLOYMENT SECURITY
0F
1 2 1 0 1 0 1 4 1 6 1 0 1 9 1 5 1 91
Page 2 o f 2
PD U C
Type Claim
RIGHT OF APPEAL
I F YOU OLSAGREE WlTH THIS OETERMINATION,
YOU MAY APPEAL IF YOU WISH TO FILE AN
APPEAL. YOU MUST DO SO ON OR BEFORE THE
DATE SHOWN ABOVE. SEE BELOW FOR APPEAL
INSTRUCTIONS.
Claimant
2323 New D a n v i l l e P i k e
Conestoga, PA 17516
and
10-1 8-87
AE Date
Social Sacurity Account Number
Name
11-2&-87
is
DETERMINATION
FINDINGS OF FACT
In addition, claimant was terminated f r o m h i s employment w i t h Financial Manageme

Group e f f e c t i v e 7-1-87.
The final incident occurred between 10 p.m. on 6-30-87
and 8 a.m. o n 7-1-87 when claimant entered the W i n e a s premises and removed
corporate f i l e s , corporate seal, corporate atock regiater a d c e r t i f i c a t e s ,
computer disks containing oorporate financial records and c a p i t a l f i l e s .
C l a i m a n t had also attempted t o drain two corporate checking accounts o f $27,000
by writing checks to himself. He enteredcthe o f f i c e s o f several individual
representatives and removed f i l e s f r o m t h e i r desks and f i l e cabinets.
Under Section 402(e) o f t h e Law, thi~

muat be considered willful misconduct and
b e n e f i t s a r e also denied under t h i s Section.
DETERMINATION
'402('
Insmordwrs with the provirions of the Panrylvenia Unmploynwnt C a n ~ l aLm,tha

r
fdlowlng am:
-APPROVED
DISAPPROVED undn ~ k t i o n ( d
under Sstlonlsl
of ma Law:
Application fw ~
of ma ~ m :
t Dated
1
Applkatlon for Ennsflta
pCY-M
Claim for Waiting Week Endlitg

clnirnls) for
mwd
W i m for Waiting W n k Endlitg
lS2h47
cialm(t1 for ~ e e k b~i n d i i t g
10-31-87
Miladon:
11-9-87
mli~radon:
SIGNATURE OF OES REPRESENTATIVE
DATE
APPEAL INSTRUCT^. Undw S o d o n 601(el d tho Pmnwkanb Unmplovm*m Comwnmlon Law. thk r(.trml~tion b r o m r fl-I ur
a p m l lstlrr*lvfll.d. I f you dltagm.wlth thlldmrmlru!lon. vou r n . v f I l * ~ n a ~ a
~ tI h e 0fllnwh.nvov.n
chlmlnpb.n.(morfll.~n.p~l b
I+the .
-I
Is n1.d In -n.
It mum be fl1.d on or b d o n the Intd.v m .pp..l *om in th.u p p r
Ifme .pwI Is f1l.d by MII. the nppoml l m o r mum lnelud. v w r rum. and
r s u r l t y numbr, and sua p c H l a l l v mn you w l h
an . o w l from thls d*t.rmlrutlon. The a p p u l lmr m u l t be add&
m
Pmt"vlv.nh
O f f l w of dmploym.ntScurlty whish .pr
the l o w , rl*t corn* and p0stm.rk.d on w bofon tho 1a.t dav ta a p p n lhorrn In t h - u p w rlght conwr.
EMPLOYER: THlS IS NOT A DETERMINATION ON RELIEF FROM CHARGES
STATE JOB SERVICE OFFICE
rwt -.
Employer
C?
49.5.C
PinaPoial Management Group

1755 Oregon Pike
Lancester,PA 17601
Name
And
Address
uc-44
ma
-I
PY;-.-L
See Reverse Side
F-9-y-r-+
5.c..2
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- h,
:trcct
f r.::,2ce
e.9. fix i4:3
-I
~
:s,.:
bn-xk,
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for
Provisions of t h e
Law
FA lib03
0312
ROBERT M. LAM
Chairman
COMMONWEALTH O F PENNSYWANIA
ROBERT P. CASEY
Governor
EDERICK H. PLANK
NANCY L. DIANA
Secretary
ELIOTT KLElN
Chief Counsel
Pennsylvania Securltles Commlsslon

333 Market Street
Telephone: (717) 787-8061
November 25, 1987

.
J. Caterbone
New Danville Pike
Conestoga, PA 17516
2323
RE:

Lancaster, Pennsylvania
Dear Mr. Caterbone:

With reference to our telephone conversation on November 23,
1987, I feel that we suffered from a lack of communication
and to avoid any misunderstanding in the future, I am
requesting that you submit your complaint in writing.
I
Enclosed is the Commission's standard complaint form which

you may use or use as a guide.
The Pennsylvania Securities Commission does conscientiously
review and take appropriate action relative to all complaints
pertaining to its mandated purpose.
Yours truly,
Howard L. Eissler
Securities Investigator
HLE:sec
Enclosure
j.
OFFICES
1109 STATE OFFICE BUILDING, PHILADELPHIA, PA 19130-4088; Telephone 215560-208

806 STATE OFFICE BUILDING, PITTSBURGH, PA 15222-1210; Telephone 412-565-5083
I I

h PROFES5lONhL CORIDRATION
STANLEY .J.
CATERBONE
HOAU
STONE WARBOR. N J 08247
MR.
c.=-.sa-? HERKEI..EY
ACCOUNT P R E V I O U S L Y RENDERED
US.
STATEMENT
BALANCE
INTEREST
W I L L I A M h BETTY O'klAFiA
9824 AUGUST
18 1987
3.0026 SEPTEMBER 21 1987
Slt362.50
ss0.00
$46.57
$1.14
CATERDONE.
' J017
I N T E R E S T WILL HE CHARGEKI AT
1.00%
PER MONTH ON ACCOUNTS U N P A I D 30 DaYS
AFTER T H E D A T E OF THE STATEMENT.
%1.4(
e:
STANLEY J
---1901
-..-r..h."m n
- 1925 Lahiah Streat,
lUUJlllOl
JCI V l C e S
Allentown. Pennsylvania 18103 215-791.2230
..-..-..--
(Same ar " I N V O I C E T O " unlerr otherwire
GLOBAL E N T E R T A I N M E N T
GROUP LTD.
PO BOX 40
CDNESTOGA, P A
17516
SAME
INVOICE DATE: 11/30/87
DEPT: 2
1
<
SILVER DUPLICATES
DIAZO DUPLICATES
~..
'8
c
GROSS AMOUNT
930.54
TAX
55.84
FREIGHT
1.
(
9
9
A N V C W U FOR DAM-CE OR SHORTAGE MUST BE U A M

W#TH~N
FIVE D*YS FRW THE OATE OF THO* tnvo#cc
ORIGINAL INMiCE
:*\
C
2 unwr
t
.tt****'
R
*
OFFICE OF THE INSPECTOR IN CH

Harrisburg. PA 17105-9000
December 17, 1987

Stan Caterbone
40 Box PO
Conestoga PA 17516
RE:
False Change o f Address

Complaint No.:
08662
Dear P o s t a l Customer:
I have r e c e i v e d a complaint concerning t h e a l l e g e d f i l i n g o f a f a l s e
change o f address o r d e r f o r y o u r m a i l .
To a s s i s t me, please t a k e a moment t o complete t h e enclosed q u e s t i o n n a i r e

and r e t u r n i t t o me i n t h e enclosed pre-addressed envelope which r e q u i r e s
no postage.
I f you need t o c o n t a c t me concerning t h i s matter, please c a l l t h e number

shown below.
When c a l l i n g o r w r i t i n g me, please make r e f e r e n c e t o t h e
complaint number I i s U e d above.
Thank you f o r y o u r - a s s i s t a n c e i n t h i s regard.
<-,
Sincerely,
Postal Inspector
215-921-7101
Enclosure
QUESTIONNAIRE
(FALSE CHANGE O F ~ D R E S S )
YOUR NAME:
{0./3&
ADDRESS:
COMPLAINT NO:
\-.-
08662
A/L---Q~&~
/4/7LT/6
PHONE NO:
1.
7Zd
/.d-f
Do you know who f i l e d t h i s f a l s e change o f address, o r do you

have any suspects?
xf Yes,
Yes
NAME:
%4,/3
/7$3-
ADDRESS:
L] No i]
- 20~mL-r
~ F A W
o&w~-&
/dgc,/~&r/ J ~ L T L & / T
?A,+
Aurs
,A
J /
you suspect t h i s person?l"

L
d d L
3.
flqAzcn?&
/
'
Have you contacted y o u r l o c a l p o s t o f f i c e ?
Yes
N0I-I
I f not, immediately c o n t a c t them and request t h a t t h e address
4.
change be cancel led.

Have you been expecting any v a l u a b l e m a i l which has n o t been
received
(i.e.,
check, c r e d i t card, etc.)?
Yes
No
Ifyes, please f u r n i s h t h e type of m a i l and any i d e n t i f y i n g numbers

such as check number, c r e d i t c a r d number, etc.
&$&7,2.
'
YouyIsiy6ature
F+L.
Date
THANK YOU FOR TAKING THE TIME TO COMPLETE THIS QUESTIONNAIRE.
..
HEARING WILL BE AT THlS DISTRICTCOURT
k. ..
I..
COMPLAINT NO.
DOCKET NO.
NOTICE DATE:
717 569-8?74
PLAINTIFF:
DEFENDANT:
Scott Robertson
1755 Gregon P i k e
vs.
LancJster,PA
17601
J.
L
THlS IS TO NOTIFY YOU THAT:
q DEFENDANT INTENOSTO DEFEND

q THIS CASE CONTINUED TO
Idate & timel
ATTHE REOUESTOF:
ANY PARTY HAT THE RIGHT

TLl APPEAL WlTHlN 3 DAYS
OF THE DATE OF JUCGMENT
BY FILING A NOnCE OF
APPEAL W l W THE C W R T OF
CUWKN PLEAS
OTHE
PLAINTIFF
q THE DEFENDANT
(name) StaAl~?yC a t e r t a n c
=JUDGMENT WAS ENTERED FOR
OJUOGMENT WAS ENTERED AGAINST Inamel S m t t RObaztson
I N THE AMOUNT OF
ON (date) Jao3JaEY 7. 19BO
q DAMAGES WlLL BE ASSESSED ON Idate & time)
O T H I S CASE STAYED UNTIL FURTHER NOTICE.
THlS CASE DISMISSED WITHOUT PREJUDICE
POSSESSION GRANTED
q POSSESSION NOT GRANTED
q LEVY IS STAYED F O R OAYSOR OGENERALLY
STAYED
07:
$2035.42
1:
'i.
*;
HEARING WILL BE HELD

COPYto:
AOPC
,:
,/
..
'
I &
&?
. .;.
t&?&&b2$ :J$>Z~@..:
(signed)
(SEAL)
/District Justice)
31684
. .... :...
..i
,s, .,! >'.
.
'
nPlalntiff'$ Anornsy
nDefandant'r Attorney
Idate & timal
PLAINTIFF OR PLAINTIFF'SATTORNEY
_(
I__.-.
i/
Guerin loses case

ing cash had been traced to a

Pennsylvania charity operated
The judge said he could not be- bv
~" Guerin,
- -~~~~
lievc that-Gucrin was unable to
At the height of his career in
provide inforrnatlon about what Lancaster, Guerin funded numerous charities here and
happened to the money.
That opinion was strengthened abroad through Parent induss
holdmy compabv Guerin's admission that the tries, h ~ private
P-anamanian companies werecs- ny. His donations were estimated
tablished, operated and dls- a t $10 million throueh the 1980s.
said Guerin's failure
solved under his instructions, the to Hoffman
provide any information to the
judge said.
not the reaction of a
The judge noted that ~ u e r i n court was
doing his best to comolv.
~".
had acknowledged that the indi- litigant
viduals named as "managing di- but- was a pkrfuniiory answer.
rectors" on documents for-the which could fairly be descr~bed
Panamanian companies did not as contemptuous.
A legitimate litigant would
exist.
have
offered some explanation to
If the directors of the compa- the court,
he said.
nies did not exist, the judge said,
But, the justice said, the sworn
it follows that the contracts isfiled by Guerin
sued by them could not be genu- statement
showed a determination on. his
ine.
"If they were not genuine con- part not to assist Ferranti or its
tracts, then the money must have subsidiaries in any way to locate
been paid out for some ulterior the money.
The justice said he could not
purpose. and if it was, then Mr.
Guerin must know something take sanctions against Guerin for
about what happened," Hoffman failing to provide additional information.
said.
"As Mr. Guerin is out of the juHe noted that some of the missrisdiction, the court has no sanction against him except to say
that anyone who wished to defend
proceedings in this country is required to play according to the
rules of this court. He has not,"
the
justice said.
District Judge Daniel H.
Early this afternoon, Richard
Huyett III has turned down the
sentence reduction request of Dunn, a Ferranti attorney, said
jailed Lancaster defense con- the company was pleased the
court has decided in its favor.
tractor James B. Christian.
"Thecompany's never had any
But Christian, theGrmer president of United Chem-Con Corp., aoubt .about the truth and has
can ask again later for a cut in his confidence in the judicial system
six-year fail term, a spokesman in the.U.K. (United Kingdom) and
here to get to the bottom of what
for Huyett said.
Christian has been jailed in the happened," Dunn said in a telefederal prison in Loretto, Pa., phone interview from his Baltisince July 1989 for his role in a moreoffice.
Dunn noted that the British
contract fraud that cost the Defense Department and Meridian judge had ruled on the basis of
statements filed by both sides,
Bank an estimatedS15 million.
Christian had asked for a sen- without a trial occurring.
Apparently the judge believed
tence reduction, based on his cooperation with federal prosecu- the case "was soone-sided that a
tors in on-going investigation of trial was notnecessary," he said.
defense frauds here.
Judge Huyett's order gave no
(Staff writer Tim Buckwalter
reason for denying the request.
alsocontributed to this report.)
~
-~~
~
Christian denied
reduced sentence
- .
-- ..- . --..-.
...
c..-nuauas
R E V d.81
,.
~ vnc ~K C V I C R
REFEREE'S DECISION
5 . 5 . A C C T . NO.
APPEAL NO.
/ \
rStanlev
Cat9rbne
23?3 N e w Danvillc Pike
Conestcqa, Pa. 17516
,T.
I
D A T E A N 0 N A T U R E O F OFFICE O F E M P L O Y M E N T S E C U R I T Y 5
OECISION:
- -- -
- c'
11/09/07 -CIJ\IMAElT INEJJIGIRIZ Section 402 ie) , Wilful m i s c c d u c t

lX3: S t a r i n i e r i
HEARING APPEARANCES:
_ ___
HEARING D A T E L,NO LOCATION
12/16/87
O A T E O F APPLICATION
EMPLOYER
OES REPRESENTATIVE
OTHERS ISEE BC-1091
FOR BENEFITS
Penn~lvania
COYPENSABLE WEEK CNO
10/18/87
CLAIMANT
- Lancaster,
10/31/R7
WAITING WEEK ENDING DATE
10/24/87
CLAIMANT APPEAL
EMPLOYER A P P E A L
FINDINGS OF FACT:
Cj
1.
The claimant was l a s t ~mployedwith Financial MamgBnent G m u p i n chame of

the emplover's m r k e t i n q -rations,
owrsceinq the crrrpxlter functions and
l i f e insurance coordinqtion f o r t h e i r representatives a t a l a s t s a l a p r of
$35,000 per t e a r . He ?tart4 h i s en@mment -st
1, 1986, and l a s t worked
on ;rune 30, 1987.
2.
me
claimant was a l s o an executive vice president of t h e corporation and

rwned forty thousand shares of s t o c k - h e w n f i f t e e n and seventeen percent
of the total stock.
0
- 3.
- 4.
i'
The claimant was a m&r
of t h e board of d i r e c t o r s , attended board m e e t i ~ s
and voted h i s stock a t such rrreetims.
5.
The c l a j m t , tcqether with the president and other vice president, set pnlicv
f o r the corporation.
6.
The claimant w a s rcspcmsihle, alnnq with the other two corporate principles,
f o r h i r i n g and f i r i n q . me claimant siqned checks for t h e c o ~ p o r a t i o nand had
as much authoritv as e i t h e r of the other t m persons.
7.
The president and t h e other executive v i c e president w t e d to terminate the
!There were two o t h e r principles i n t h e mrporation, Fnbert K a u f h n , the

president, rho owned s i x t v thousand shares of stock and Michael Hartlett,
vice president. who m.ed the 7 . '-nt
of stwk as the claimant.
clamant f
on &une ,
%:00 W cm ilulv 1, 19P7, the claimant entered t h e e m p l m r ' s premises and
r
~ ~ k cmpxtcr
s ,
alscs, tiles, m r d s and s o w o-rl
m
e
v
'
s o f f i c e a f t e r which he
NOTICE:
have the r i g h t t o f i l e a further'appesl within 15 davs a f t e r the mail in^ d ~ t e
- . You
.
~IFMG
Advisory, Im.
l
N
Edrn Par* 11, 1755 O n g o n Pike
=?L2!!-w-5"
Lancastrr. PY 1760f
717-560-4100
PRESIDENT
Stanley J. Catertone $5&

P.O. Box 40
Conestoga, PA 17516
A P P ~ Amm:
L
300
- YL- o 9 C 7
/#/=s/87
Comnrwealth of Fennsylvania Department of Labor and Industry

Unemployment Capensation Board of Review
Ms. Evelyn Stehman
January 8, 1988
Dear Ms. stehman:
As per your decision regarding appeal X87-3-F-808, I would like to site

&or
discrepwzies with your infonuation that can be substantiated by the
F'emsylvath Securities and Bxchange Ccomission as well as the Laws of
Incorporation pnrruant to Pennsylvania "Business Corporation Law" Approved May
5, 1933, P.L. 364, as amended.
First of all you sight "CLAIMANT INELIGIBLBW-Section 402 (E), Willful

Misconduct-Re: Starinieri
I will outline to to you the circunstances that lead to the Action taken
by mgself and James Warner on July 1, 1987. First you w s t read the enclosed
transcript that was placed cn the Complter System that I desijmed at 1755
Oregon Pike, hilding to which I, Stanley J. Caterbone, is currently a
leaseholder of title. This transcript was proceased on or about May 2. 1987.
I am Currently an Executive Vice President of Financial Management

Group, LTD., and President of EM3 Advisory, Inc., all said corporations
incorporated under the Laws of F'ennsylvania.
Let it be known that I personally handled and supervised all legal
matters for the said corporations, through the counsel of McNeeae, Wallice &
Nurick, of Harrisburg Pennsylvania, to whan Jeff Jamounou represented. Often
times I had to s p e d much time and energies diagnosing and aolving many
problems caused by Mr. Hartlett and Mr. Kauffmsn. Most problems came because
of the fact that t h e p would often sacrifice Corporate Opportunity for Personal
Benefit, which is probably the worst dilemna any F o d e r could find within his
Board of Directors. However, because of w stronrr will and determination to
build a Successful Corporation, I was not and wili Not pct up with such
A N D O N , NO M A m WHO IS IMPLICATED!
- - -~
~
- -
QI June 23th, 1987 I had the locks on my office changed for Security
Reasons. I will not defend my CONSTImIONAL Right for Privacy regarding this
issue! On June 29th, 1987 I was told by Mr. Kauffman that he had issued a
Stock Certificate to Peter Peneros for 8,000 shares of Financial Elanagement
Group, LTD.. Although I quickly asserted that I was the Corporate Secretary
and only I was authorize to Issue the said Certificate, and my signature was
needed to finalize the transaction. This can be substantiated by New Jersey
Bell, since I was in Stone Harbor, where I w a s calling from. However my real
problem----My Office was burglarize by the President, Robert Kauffman, and the
Executive Vice President, Michael Hartlett. That was a NO NO ! ! ! !!!
hring the course of our First Year, I have discovered many action and
activities of Michael Hartlett and Robert Kauffman, as well as other persons
affiliated with this tragic but true nightmare. These allegations have been
revealed to several authorities and various representatives of the respective
local, state, and federal agencies, specifically the Pennsylvania Securities
and Exchange Comnission, and the Office of the Postal Inspector in Harrisburg,
to which official Complaints were already filed. During the month of May, I
have found substantial evidence to collaborate the said allegations, however
due to the complexity of the Corporations and Buainesses involved as well as
the relationships of all involved, I wanted to handle these affairs in the most
delicate and professional manner possible. W e n making this more bizarre is
the presently turbulent and mismanaged Securities Industry. This can be
substantiate in my letter to Diane Sawyer of CBS 60 MINWES, on August 28,
1987. I had several conversations with outside legal counsel, in particular,
Randy Grespin of The Underwriters Group, of Harrisburg, one of my affiliates.
We had discussed several courses of action, one specifically was a 90 leave of
ah-,
with pay, to take the appropriate time necessary to unravel this legal
NIGH'IMRE! As I began to gather material evidence to these allegations, my
life became very difficult because business was taking me out of town on a
daily purpose, which was the reason for the p m h a s e of my Navajo Cheiften
Airplane. I was virtually supervising every aspect of our operation, trying to
keep within the appropriate LBW9, Rules, and Regulations of the respective
authorities. I more than anyone was especially sensitive to these anrtters,
because of my knowledge of the said Rules, Laus, and Regulations. I was also
concerned for the following Reasons:
1.
Responsibility to all and any Shareholders, and our lack of Officers

Liability Insurance, which they a l w denied me of!
2.
Responsibility of all involved as the Founder of the said

Corporations.
3. Responsibility as Agent for the sale of all M,LTD. Stock.

4.
Terminations of Mary Lynn Dipaolo and Nancey Miller in

November of 1986 without any cause, and most importantly
the Coercion by Michael Hartlett for resignations to deny
Unemployment Canpensation Benefits for them!
5. Personal convictions of tUNE3TY AND INTBXITY IN ALL ASPECI'S OF

LIFE !
of Financial Management roc

- as stated in the Corporate Bylaws
LTD. and MC Advisory, Inc.. If I
to extract and m i n g l e $27,000.00
--
IR"
wanted
of Corporate Funds, I certainly would have done that. I merely questioned my

Legal Counsel if I, Stanley J. Caterbone, had the jurisdiction to use the
Corporate hnds, to pursue the costly Legal Elattle, I was about to undertake,
on behalf of Financial Mmsg-t
Croup, LTD. as Executive Vice President ard
Secretary, and EM3 Advisory, Inc., as President and Secretary, to which I still
currently hold the above offices, purauant to the Lam of Incorporation of
Pennsylvania.
UNTIL THIS 1lTH DAY OF JANUARY, 1988, STANLEY J . CATERBMJ3 HAS NEVER
CORRXATB RECOW)S, TO WHICH I AM ENTITLED,
I HAVE NBVER
RECEIVED ANy w R 1 m OR a?AL coEf.IuNICATION mad ANY PERSONS AVTIMRIZED BY IRIE
CORRRATE BY LAWS REG4RDINC ANY TERMINATION mad THE ABOVE MENTIONED OFFICBS!
RECEIVED
As to your Determination that I Had "SUBSTWIAL =L"

over the
affairs of the said Corporations, men How Did I Oet "UXXED OVP" as per your
investigation, and letter of November 24th, 1987?
I would ask that you copy me a copy of the transcript of the Appeal
Hearing.
<.
Regretfully,
cc: Diane Sawyer, CBS 60 Minutes

Governor Robert Caeey
Murray Horton, Distrcit Justice

Detective Siegler, hnheim Township
Detective Mathias, Manheim Township
Officer Fatta, Manheim Townahip
Detective Borger, Stone Harbor Police Departnient
Joseph bdenspacher, Assistant Diatrict Attorney
Avalon Police Department
Govemer lh&an, New Jeraey
Pennsylvania Housing Finance Agency, Robert P. Bolincheck
Daniel Berger, Berger Real Estate, EMG,LTD.
George C. Warner, Barley, Snyder, Cooper & Barber
Jeff Jainanou, McNesse, Wallace & Nurick
H a J a r d Eisler, PMnsylvania Securities & Exchance Camnission
Edgcwwd Exccutivc Offices

255 Butler Avenue
Lancasrer. PA 17601
717-397-8969
Grandview Offices
796A Rear. New Holland Avenu
Lancaster. PA 17602
January 13, 1988
717-299.8914
Stan Caterbone
Word Processing Services

12.25 @ $15.00
Disk w/info
Copies (1 10)
10 tapes given to Secretari-All

I / ' /88dL7
10 tapes returned to Stan Caterbone 1/13/88
A Proferrional:~ecrelnrial Service
--
(717) 464-2601
(717) 464-2311
2718 W i l l o w Street Pike
WILLOW STREET, PENNSYLVANIA 17584
/
SOLD TO
~cdciimnc/ ~
10,
/om 3-r.
YD
9Ess
SALESMAN
MAKE
ONEW
/?
8 ,0516
Bus.
(onesbe
REs PHONE
/ o ~ c / i o ~ ~ r ~ ~ G+r Lm
w . ,i- / if
PHONE
L'
DATE
/-/5'-F;
SUBJECT TO THE TERMS AND CONDITIONS STATED ON THlS AGREEMENT

SELLER AGREES TO SELL AND THE PURCHASER AGREES TO PURCHASE THE FOLLOWING DESCRIBED PROPERTY:
MODEL & YEAR
LENGTH
O(ef
7W R -
p usm
,1972
SERIAL NUMBER
PROPOSED DELIVERY DATE
~OA~LWD
INSURANCE AGAINST LIABILITY FOR BODILY INJURY OR PROPERTY

DAMAGE TO OTHERS IS NOT INCLUDED IN M I S TRANSACTION.
26 IF^'
ODOMETER READ1
OF
OPTIONAL EQUIPMENT. LABOR AND ACCESSORIES
500
OPTIONAL EQUIPMENT
H l K H HOOKUP
Complete
h
DESCRIPTION OF TRADE-IN
SIZE
. x
MODEL-
MAKE
-n
SERIAL NO.
--
I T I S MUTU*LLY UNDERSmOO THAT T H l S AGREEMENT I S SUBJ

NECESSARY CORRECTIONS. AND ADJUSTMENTS CONCERNING C I
I N NET PAYOFF AND CONDITION OFzTRADE-IN TO B E MADE AT TH
OF SElTLEMENT.
,r 'm
I, OR WE, HEREBY ACKNOWLEDGE RECEIPT OF A COPY 01

I, OR WE HA
READ
EEMENT,
TITLE NO.
OWMETER READING
T t l e to said equipment shall remain I n the Seller, until the

purchase p r i m themfor I s paM i n full in cash; thereupon I
the within described unit passes to the buyer as of the c
Payment m n though the actual Physlca( d e l i m y may I
made until a later data.
. ORDER AND THAT

D
E, , ! ,
SIGNED X
-- )
I ,
,,f
/",
/--URCt
PURCt
rurii
AcrccI
P.O. Box 15530

1 4 3 r r i s b u r g . P c n n s y l v a n i a 1?103-5530
7 11-780-3940 or 1-500-342-2397
W
' m C ' 1 rn.1ORIr;;lGE m1mcE FsCGmM
OR CIANGE
STA'rE.Mmr OF CREDIT D m , m - O N
F ' m
'FEDERAL ~ V X N G SB4M<
24 W. KING ST.
IAN-,
...-
2323 NEW DANVILLE PIKE

0 3 E D X A . PA. 17516
PA. 17603
PdvAction Taken: REJECTION

Principal Reason(s) f o r Arfverse m
n c ~ E . ? h i q Credit:
Mortgagor is not suffering financial hardship ctue t o cjlarmstances bey0I-d mrtgagor's
control: smrtgagor was f i r e d from job. ( A c t 91, Section 404-C(A))
lou may be e n t i t l e d to an appeal hearirq i f you disagree with cur decision. W e must recei
written request for a hearing within 15 days of the p s t m r k date of this letter. T
ring may be on-ducted by a telephone conference call. Therefore, you nwst inciude yo
is request
kle&one number. Fkquests f o r hearings must state the reason(s) that a hear*
ud must k sent f i r s t class, register& or certified m i l to: Chief Counsel H e a r i
Request, Eemsy1vani.a HOUS~I?=J Finance Agency, 2101 North Front S t r e e t , P. 0. Eox 15628
with
%rrisburg, Femq1vani.a 17105-5628. T h e ? u p q w i l l atterm@ to sdwdule the heardays
a
f
t
e
r
the
request
is
received.
W
h
e
n
sending
y
m
appedl,
plbe
sure
th+ty (30)
prlnt your me legibly and include ycur social security n m k r .
"C
~ ~ - u ' f iOF
Z G
S
T OF W~URMXITON OBTAl3iED F17CM OVrSIDE SMJRCE:
Information obtained from outside source other than a credit hreau. Urder the Fair
edit R e p a i n g Act, ycy have the r i g h t to make a written request, w i t h i n 60 days of
receipt of this notice, f o r disclosure of the nature of the adverse information.

Write to: RmnylMnia Housing Finance Agency, Disclcsure west, 2101 N o r t h Front
S t r e e t , P.O. E~x 8029, Harrisburg, PA, 17105-8029.
I3-e Federal E q a l Q-edit o p p o ~ t yA c t prohibits cx-eclit3r.s frcm discriminating a g a i n

=redit applicants on the basis of race, color, religion, national origin, sex, mrita
r;tatus, age (pmvided that the applicant has the capacity t o enter into a birding contract)
3ecause all or part of the applicant's inccm derives fn;m any plblic assistance program; a
=use
the applicant has in g d f a i t h exercised any right Wer the Consurcex Oredit Protec
tion Ad. e
Federal ~gency that administers a m p l h w i t h this law m m q thi
xedibr is the Federal Trade C a m i s i o n , Equal. Credit c q p r t u n i t y , Washington, D. c
s-Y,
EXHIBIT "E"
I
I N THE COURT O F COMMON PLEAS OF JANCASTER COUNTY, PENNSYLVANIA

C I V I L ACTION
LAW
PARENT FEDERAL SAVINGS BANK.
65y
NO.
A c t i o n i n Mortgage
Foreclosure
1988
VS.
STANLEY J. CATERBONE and

MICHAEL T. CATERBONE -.
- --
,/
.. ,~
C*
+.
..
'
<
NOTICE TO DEFEND
-? (0
YOU HAVE BEEN SUED I N COURT.

I f you w i s h t o d e f e n d a g a i n s t
t h e c l a i m s s e t f o r t h i n t h e f o l l o w i n g p a g e s , you must t a k e a c t i o n
w i t h i n t w e n t y ( 2 0 ) d a y s a f t e r t h i s C o m p l a i n t and N o t i c e a r e
s e r v e d , by e n t e r i n g a w r i t t e n a p p e a r a n c e p e r s o n a l l y or by .
a t t o r n e y and f i l i n g i n w r i t i n g w i t h t h e Court your d e f e n s e s o r
o b j e c t i o n s t o t h e c l a i m s s e t f o r t h a g a i n s t you.
You are warned
t h a t i f you f a i l t o d o s o t h e case may p r o c e e d w i t h o u t you a n d a
judgment may b e e n t e r e d a g a i n s t you by t h e C o u r t w i t h o u t f u r t h e r
n o t i c e f o r a n y money c l a i m e d i n t h e C o m p l a i n t o r f o r any o t h e r
claim o r r e l i e f r e q u e s t e d by t h e P l a i n t i f f .
You may l o s e money
o r p r o p e r t y o r o t h e r r i g h t s i m p o r t a n t t o you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE.
I F YOU
DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE
OFFICE SET FORTH BELOW T O FINI! OUT WHERE YOU CAN GET LEGAL HELP.
Court A d m i n i s t r a t o r
Court Administrator's O f f i c e
L a n c a s t e r County C o u r t h o u s e
50 North Duke S t r e e t
L a n c a s t e r , P e n n s y l v a n i a 17602
Telephone Number (717) 299-8041
.-
N O T I C I A
Le h a n demandado a u s t e d en l a c o r t e .
S i usted quiere
d e f e n d e r s e d e estas dernandas e x p u e s t a s en l a s p a q i n a s s i q u i e n t e s
u s t e d t i e n e v i e t e (20) d i a s d e plazo a 1 p a r t i r d e l a f e c h a d e l a
dernanda y l a notification. U s t e d d e b e p r e s e n t a r u n a a p a r i e n c i a
e s c r i t a o e n p e r s o n a o p o r abogado y a r c h i v a r en l a c o r t e e n
forma e s c r i t a s u s d e f e n s a s o s u s o b j e c i o n e s a l a s demandas e n
contra de s u persona.
S e a a v i s a d o que s i u s t e d no se d e f i e n d e ,
l a c o r t e t o m a r a m e d i d a s y p u e d e e n t r a r una o r d e n c o n t r a u s t e d si:
p r e v i o a v i s o o N o t i f i c a c i o n y p o r c u a l q u i e r q u e j a o a l i v i o q u e e:
p e d i d o e n l a p e t i c i o n d e demanda.
Usted puede p e r d e r d i n e r o o
s u s propiedades o o t r o s derechos importantes para usted.
LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTE. S I NO TIENI
ABOGADO 0 S I NO TIENE EL DINER0 SUFICIENTE DE PAGAR TAL SERVICIO,
VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION
SE ENCUENTRA ESCRITA ABASO PARA AVERIGUAR DQNDE SE PUEDE
CONSEGUIR ASISTENCIA LEGAL.
Court Administrator
Court A d m i n i s t r a t o r ' s O f f i c e
L a n c a s t e r County C o u r t h o u s e
50 N o r t h Duke S t r e e t
17602
T e l e p h o n e Number (717) 299-8041
HZXTMAN UNDERHILL & BRUBAKER
Attorneys f o r P l a i n t i f f
By:
221 E a s t C h e s t n u t S t r e e t
L a n c a s t e r , PA 1 7 6 0 2
(717) 299-7254
ARNOLD, BEYER & HOMSBER

ATTORNEYS AT LAW
110 EAST KING STREET
LANCASTER, PA 17602
In Account With
Conestoga, PA 17516
Date:
March 21, 1988
For professional services rendered from September 8 , 1987 through March 15, 1988 a s
follows:
09/08/87
Prison visit
09/09/87
Telephone from bail bondsman
09/09/87
Seven phone calls

Telephone to District J u s t i c e Horton, conference with client
Telephone from client, telephone t o District Justice Horton
Telephone t o M.T.P.D.,
conference a t M.T.P.D.
and conference with M.L.D.
Telephone from client

Telephone t o client, telephone t o Atty. Chris Hausner, telephone t o Core
States
Telephone from Investigator Isler at PSC; telephone t o client
Letter t o Court Reporter, telephone to Court Reporter
Conference at C o u r t House
Conference PSC
Conference with client, Civil Hearing
Telephone from client re:
checks
Prepare f o r hearing; telephone from Atty. Hausner

10/02/87
Hearing preparation and preliminary hearing
Letter to client with Waiver of Arraignment

Letter to Atty. Hausner
Telephone from client, telephone to Philadelphia attorney
Telephone from Atty. McDonald
Telephone to client; telephone to Atty. Werner
Telephone from M L D
Appeal and letter
Telephone to Atty. Werner
Two telephone calls to Mr. Weeber a t Pioneer Abstract
Conference with Weeber, telephone from Atty. Russell, telephone to Atty.
McDonald
Conference with client, settlement
Conference with client, two telephone calls to Pioneer Abstract and one
to purchaser
File Ludwig Appeal, telephone to Oblenders, (return)
File appeal card
Telephone from the District Attorney
Letter to Atty. Russel, letter to client
Telephone to District Justice Horton
Telephone from Atty. Jeffrey Wright
Letter from client
Letter t o District Justice Horton
Letter to client; file waiver; prepare discovery request
File and serve discovery request
Letter to client
Letter to client
Telephone to Atty. Russel
Telephone to Atty. Russel
Telephone from attorney re:
District Justice
Letter to client
Telephone from client; telephone to Attv. Russel; telephone from Atty.
Russel "today"
Letter to District Attorney, letter to client with discovery request
Telephone from District Justice Horton
Prepare release
Letter to client
Conference with District Attorney
Phone call a t home
Conference with client
Letter to client re:
Corestates
Prepare Answer for Friday

Letter to client, telephone to Lancaster Aviation
Letter to Atty. Jeff Wright
Letter t o client
Letter to client
Telephone to Det. Bonowitz; telephone to Prothonotary; telephone from
Atty. McDonald
Letter to Atty. McDonald; telephone conference with Prothonotary's
Office; Appeal; praecipe for joinder
03/03/88
Telephone c o n f e r e n c e with Atty. ~ClcDonald
03/04/88
L e t t e r t o client; l e t t e r t o Atty. Russell; l e t t e r t o Atty. McDonald
03/08/88
Telephone c o n f e r e n c e with Attv. McDonald
03/15/88
Telephone c o n f e r e n c e with Atty. McDonald; finalize criminal c h a r g e s

TOTAL COST O F SERVICES:
Retainer
Final Bill
RDB/ds
$2,274.00
$ 200.00
L 9 i V OFFICES
ARNOLD. BEYER & HOMSHER

l I0 EAST KING STREET
LANCASTER. PA 17602-2876
IOHN W. BEYER
i i l i l 394-i204
HARRIS C. ARNOLD
DAVID C. HOMSHER
JOHN WILLIAM BEYER
t1911-l91bl
LESUE GORBEY
JAMES P COHO
ItVIP-19861
ROBERT D. BEYER
March 21, 1988

2323 New Danville P ~ k e
Conestoga, PA 17516
Dear Stan:
I am pleased to inform you t h a t a s of March 15, 1988, all of t h e criminal
c ar es endlng against you in this county were dismissed. Additionally. all of your
Cour costs and restitution have been paid. I am sure that you are happy with this
C___
outcome!
w .
3
3
Mike McDonald intends t o enter his appearance on your behalf in those civil
cases which a r e currently pending in Lancaster County. Until he does, however, I
will be on the hook f o r them, so I certainly hope he a c t s without delay. If you
speak with him, you may want t o remind him t o enter his appearance at his earliest
convenience.
(-.
Because this is t h e conclusion of your criminal case, i t appears as though my

work i s now completed. Accordingly, I am enclosing herewith our bill for services
rendered between September 8, 1987 and March 15, 1988. Considering the work
done and the result achieved, I am sure that you will find its contents reasonable.
I understand t h a t you a r e probably not in a financial position t o fulfill this
obligation at this particular time. If you are, of course that is tine! However, if
you a r e unable t o pay this now, any partial payment would be appreciated.
Understanding your current financial difficulty, we will continue to send you
reminder billings on a thirty (30) day basis. This i s usually generated by a
computer, so please do not interpret i t a s harassing you for payment!
I would like t o take this opportunity t o thank you f o r allowing m e t o
represent you during this most difficult time period. I of course will assist Mr.
McDonald in any way in connection with your representation in the civil suits
currently pending or soon to be filed. Do not hesitate to give me a call if you
need any help.
Very truly yours,
ARNOLD, BEYER .& HOMSHER
RDB/reg
Encl.
A MEETINGS PROFESSIONAL
March 22, 1988
Mr. Stan Caterbone

P.O. Box 40
Conestoga, PA 17516
Dear Stan:
I haven't Forgotten you but I've been racing around on other programs. I'm
the lady you met on the plane From Dallas.
Here is a list OF persons I've given your name to in case they need a Freelance AV prrsurl For- ti lei,- p , - u y ~ - d ~ s :
Mr. Bob Lazar
Audio Visual Specialist
7617 Mountain Ave
Elkins Park, PA 19117
215/635-6649
also theater contacts
Or. Roko Paskov

1600 G Canterbu-y Trail
Mt. Pleassnt, MI 48858
517/772-0761
moving to Nashville in June
Theater/NYC contacts not AV
Jim Stoup
Lyons Group
715 Orange
Wilmington, OE 19801
302/654-6146
AV
Richard Rothwell
Dave
R T G E
604 W. 10th
Wilrnington, OE 19801
302/652-3211
AV
Graber
E. I. duPont de Nemours Co., Inc.

N-2425-81
Wilmington, M: 19899
302/774-7432
AV
Mark 0. Sullivan
Producer-Consultant
Box A-3793
177 Webster St.
Monterey, CA 93940-3182
408/373-7099
AV
That's all I know to date. IF you have something you can put together as to
what you've done regarding AV or that Sony deal you mentioned .... it would give
all of them an idea of what you can do.
Free-lancing with AV can get you in
touch with other clients and you can take it from there.
Good luck with this! Hope you have Followed up with Ted Turner and 60 Minutes!
Sincerely,
P. 0.BOX EIGHT
WILMINGTON.
'DE 19899
U M e r l l l GUr 1 lpdl ly
c-,,
8-.
7' 6
fense electronics business.

Parent's holdings included, for
instance, the Four Seasons golf
course in East Hempfield Township, a California computer
graphics company, a local travel
agency and a local tool-malung
' company, among others.
In addition, its Centerville
Road office was the headquarter$ for a extensive Program Of
charitable giving by Guerin,.estiI mated a t more than $10 mllllon
during the 1980s.
:
But Parent Industries also
served as a depository for 32 million shares of stock obtained as a
1 result of the alleged contract
fraud scheme, Justrce Departmenk officials sard in court Tues: day qnd Wednesday.
According to IRS agent Amy
Zelnik, Guerin had directed the
' creation of more than $1 billion
worth of false defense contracts
during the mid-1980s in an effort
fa inflate the value of his ISC
stock and the company's borrowing capability.
Guerin then traded his allegedly inflated stock for solid stockin
Ferranti International, the British defense conglomerate, during
a 1987 merger with that compa! ny, Zelnik and assistant U.S. Attorney Sonia C. Jaipaul said.
"As a result of the fraud he
(Guerin) perpetrated on Ferranti," in Ms. Jaipaul's words, Guerin received well over 30 million
shares of Ferranti stock, she and
Ms. Zelnik said.
After those shares were transferred to Parent Industries, the
holding company "obtained financing from numerous financia1 institutions using the stock
as collateral," said Ms. Zelnik.
The loans ranged in size from
$500,000to $39 million, she said.
'
Outburst
Continuedfrom Page One
,
1,
!
:
breakdown in s e v e r a l
jurors. ~
l pale,~,,bvi- ~
ously tired, some dissolved
into tears. one juror, her
face awash in tears, put her
arms around another sobbing woman inthe jury box.
. The prosecqtors - First
Assistant District Attorney
joseph C. ~
~
and city police ~
~
t
~~h~ wary - slumped silently in their seats.
judge ~~~i~~ gently told
the spectators to try and be
quiet as he thanked and disrni~end
the 111t-v
yullly 5-f8-7a
To get a $38 million loan from ficials said atthe time.

Citicorp in July 1988, for inA third set of contracts, known
stance, Parent pledged as collat- by the code names Gamma,
era1 32 million Ferranti shares, Damaral and Sasu, supposedly
shesaid.
involved the sale of electronic
The Fertanti stock also pro- components toSouth Africa.
.In her testimony Tuesday, Ms.
duced annualdividendsof nearly
$500.000 for Parent, the IRS agent Zelnik, the IRS agent, said the
noted.
fraud involved circulation of milUnder the terms of the plea lions of dollars among front comagreement, Parent Industries panies and bank accounts in the
agrees:
US:, Switzerland and elsewhere.
To pay $2,376,000to the U.S.
That circulation of money
under the terms of a note as- made it appear that supplies
signed by Helen Guerin, wife of were being purchased, products
Guerin.
manufactured and delrvercd,
To give up "in lieu of fines" and profits earned, Ferranti offithe $2 milliondeposited by Gue- cialspreviously said.
rin and Parent in a Fulton Bank
But in fact, IRS agent Zelnik
escrow account to settle a sever- said Tuesday, there was "no
ancepay dispute witbformerISC product, technology, customer or
attorney William A. Clark.
vendor."
To cooperate with the U.S.
In addition to the continuing
during its investigation of indi- Justice Department investigaviduals and corporations in- tion, ISC's dealings also are
valved in the governmentinvesti- being probed by the British Segation of ISC, Ferranti Interna- riousFraudOffice.
tional and their subsidiaries.
U.S. officials from the Justice
To permit the government Department, Defense Departto file the specific f a c t s s u ~ o u n d - ment, Customs, FBI and IRS also
ing the racketeering charge a t a are investigating charges of iUelater, unspecified date.
gal weapons sales to South AfriThe agreement, signed by Gue- ca.
rin attorneysJoseph A. Tate and
Stephen D. Brown, but not by
Guerin himself, will be filed in
court at a later date, Ms. Zelnik
said.
During the past year, as the
government has pursued its mnvestigation of ISC, Parent Industries went through a senes of
rapid ownership changes, ending
up back under Guerin's personal
ownership.
The company was transferred
by Guerin to his wife Helen in i
June 1989, who sold it to then
company president Michael A. )
Peck for $2.4 million in August.
Peck sold the company back to
Guerininlate April.
The government allegations of
a massive contract fraud by Gue- '
rin-controlled companies against
Ferranti echo charges raised by
Ferranti officials in civil court
actions in Great Britain.
The British defense company
hadchargedlastNov.30inacivil
lawsuit
that
~
d it lost
~ $350 million
through fraud because of bogus
contracts on the books of ISC
when the two Companies merged
in1987.
I~
One fake contract, known as
K h ~ h e Pass
r
or KP, appeared to !
show ISC Technologies Ltd., a
small English
subsidiary,
selling ~
d
~
~
~
and
~to Pakistan
~
t the
i equipment
~
~
know-how needed to mfmnufac- ,
ture state-of-the-art arr and :
ground missile systems, Ferranti officials told the New Era in :
January.
. .Guerin
. . himself
.. .. was responsie
....
Z
j
'A
I
1
5
7
f
u
a
a
V;
10,
ot
li:
ar
th
d
a
ni
International Technologies Group, Inc.

--
Member or lnternat~onalStgnat & Control Group
April 27, 1988

Conestoga, Pa. 17516
Dear Mr. Caterbone:
This is to follow up receipt of your resume regarding the Marketing
Representative position in ISC Educational Systems.
Although your credentials are good, we feel this position will require
a different sales/marketing background than your own. As a result,
we will not pursue your candidacy beyond this point.
Perhaps other opportunities will develop in the future which may be of
mutual interest. If so, we certainly will review your resume.
Thanks for responding to our ad and considering ISC in your job
search.
~ a n a ~ e kRecruitment
,
3700 Electronics Way. P.O. Box 3040

Lancaster. Rnnsyhania 17604-3040
Tel: (717)285791 1 Tckz 84.8438 Cable: INTERSIG
INC.
June 27, 1988
Stanley Caterbone
865 M.E. 74th. Street
Iliami, Fl. 33138
We have had the opportunity to review your resume which you
recently sent to us.
Your background is of interest, therefore, we would
appreciate your contacting us at 749-7000 to arrange an
appointment to sit down and have an in-depth discussion
regarding your employment needs and requirements.
We look forward to speaking and meeting with you soon.
Sincerely,
KAHN AGENCY, INC.
Martin Kahn
MK/1
9 1
7 7 7 0 West Oakland Park Boulevard. Suite 405.fort Lauderdale, Florida 3335 1
(305) 7 4 9 - 7 0 0 0
AGREEMENT
THIS AGREEMENT is made this
- day
of
fi,-+,&.
.-
1988, by and between ROBERT E. KAUFFMAN, 1755 Oregon Pike,

17601, (hereinafter referred to as
"Kauffman") and STANLEY J. CATERBONE, New Danville Pike,

Conestoga, Lancaster County, Pennsylvania (hereinafter referred
to as "Caterbone").
W I T N E S S E T H :
WHEREAS, Stanley J. Caterbone presently owns forty
thousand (40,000) shares of Financial Management Group, Ltd.; and
WHEREAS, Stanley J. Caterbone has the right to exercise
an option to purchase an additional forty thousand (40,000)
shares of stock at the price of Fifty Cents ($.50) per share; and
WHEREAS, Kauffman desires-to purchase and Caterbone
desires to sell his shares of Financial Management Group, Ltd.,
including those to be purchased by Caterbone under said Option
Agreement; and
NOW, THEREFORE, the parties hereto, intending to be
legally and fully bound hereby, and in consideration of the
mutual benefits to be derived herefrom, do covenant and agree as
follows :
1.
Voluntary Execution.
The provisions and terms of
this Agreement are fully understood by all parties and each party
acknowledges that the Agreement is fair and equitable, that it is
being entered into voluntarily, and that it is not the result of
any duress or undue influence.
All parties have been advised of
their respective rights to seek and obtain representation of

counsel, and warrant and represent that they will never, at any
time hereafter, challenge the validity of this Agreement on the
basis that legal representation was declined.
Each of the par-
ties hereto further covenant and agree for himself and his heirs,
executors, administrators and assigns, that he or it will never
at any time hereafter sue the other party or his heirs, executors, administrators or assigns, or its officers, directors,
officials, employees and agents, in any action, or contend,
directly or indirectly, that there was any absence or lack of
full disclosure, fraud, duress, or undue influence.
2.
Caterbone agrees to sell to Kauffman the forty
thousand (40,000) shares he presently holds of Financial

Management Group, Ltd. at a cost of Two Dollars and Fifty Cents
($2.50) per share, a total of One Hundred Thousand Dollars
($100,000.00).
3.
Caterbone agrees to exercise his rights to purchase
an additional forty thousand (40,000) shares of Financial

Management Group, Ltd. at the rate of Fifty Cents ($.50) per
share, and to sell those forty thousand (40,000) shares to
Kauffman at the rate of Fifty Cents ($.50) per share, a total of
Twenty Thousand Dollars ($20,000.00).
4. An escrow agent, to be mutually agreed upon by the

parties, shall be selected by November 15, 1988, to carry out the
provisions of this Agreement.
Said escrow agent shall be speci-
fically authorized to act as Caterbone's attorney-in-fact and

-2-
aqent in purchasing the above-referenced additional forty

thousand (40,000) shares of Financial Management Group, Ltd. at
the rate of Fifty Cents ($.50) per share, and shall be authorized
to act as attorney-in-fact for Kauffman in using funds deposited
with said escrow agent by Kauffman to effect Caterbone's
purchase.
5.
Caterbone agrees to submit to said escrow agent an
executed stock certificate or certificates to effect the sale of

the forty thousand (40,000) shares of Financial Management Group,
Ltd. presently held by Caterbone on or before November 25, 1988.
6.
Caterbone agrees to deliver to escrow agent whatever
documents are deemed necessary to exercise his option to purchase

an additional forty thousand (40,000) shares of stock at the rate
of Fifty Cents ($.50) per share in full on or before November 25,
1988.
7.
Kauffman agrees to deposit with the above-referenced
escrow agent One Hundred Twenty Thousand Dollars ($120,000.00) by

cashier's check on or before November 25, 1988.
8.
Settlement under this Agreement shall take place on
or before December 1, 1988.

9.
Caterbone and Kauffman authorize the escrow agent on
or before the date of settlement, to deduct from the One Hundred

Twenty Thousand Dollar ($120,000.00) advanced by Kauffman the
following sums:
A.
$15,000.00 to be paid to Financial Management
Group, Ltd.: and

-3-
B.
The amount owed to William Johnson, which
amount shall be verified by Mr. Johnson's attorney in writing to

be supplied to the escrow agent, and copies to be forwarded to
all parties on or before November 15, 1988: and
C.
Sums due on any other judgment entered against
Caterbone between the date of this Agreement and the date of

settlement.
(L~ k ~ cm~
h oc
10.
~ C I t=L,
&C.<-C
fis
gGc-,,;skee)
Settlement under this Agreement is contingent on t&e'
happening of the following events:

A.
Caterbone must return the FAX Machine in his
possession in good working order to the offices of Financial

Management Group, Ltd., 1755 Oregon Pike, Lancaster,
Pennsylvania, on or before November 25, 1988.
B.
Financial Management Group, Ltd. waives all
interest and right in a lap top computer which may be retained by

Caterbone, and a bill of sale documenting title to said computer
is executed by FMG, Ltd. on or before November 25, 1988, and forwarded to the escrow agent.
C.
Financial Management Group, Ltd. agrees that in
consideration of the sum of Fifteen Thousand Dollars

($15,000.00).
the receipt and sufficiency of which are to be
acknowledged, releases, remises and forever discharges, on behalf

of its officers, officials, employees, successors, transferees
and agents, Stanley J. Caterbone, his heirs, executors, administrators or assigns, from any and all actions, causes of
actions, suits, proceedings, debts, judgments, damages, claims,
-4-
demands and liabilities whatsoever in law or equity, and particularly, without limitation of the generality of the foregoing,
of and from any actions, causes of action, suits, proceedings,
debts, judgments, damages, claims, demands, and liabilities
arising from or in any way connected with Caterbone's employment
and association with Financial Management Group, Ltd., the termination of said association and employment, and any conduct or
actions after said termination.
FMG shall further agree that its
Release expresses a full and complete settlement of liability

claimed, and that said payment and the acceptance of the Release
shall not operate as any admission of liability on the part of
Caterbone.
Said Release shall be substantially in the form as
attached to this Agreement as Exhibit "A".

D.
Financial Management Group, Ltd. releasing
Caterbone's personal effects, including office furniture, upon

reasonable demand to Caterbone, on the condition that Caterbone
bears full responsibility for moving costs.
If Caterbone fails
to exercise this right within three (3) months from the date of
this Agreement, he relinquishes all right to said personal
effects and office furniture, and title to said goods shall pass
to Financial Management Group, Ltd.
11.
Kauffman agrees to authorize escrow agent to pay
Fifteen Thousand Dollars ($15,000.00) to Financial Management

Group, Ltd., in exchange for Financial Management Group, Ltd.'s
execution of a Release substantially in the form as attached
hereto as Exhibit "A", and its execution of a bill of sale for
-5-
the above-referenced lap top computer.

12.
Kauffman hereby authorizes the release of the amount
to be determined to be due and owing to William Johnson from

Caterbone in exchange for a certificate of satisfaction of the
judgment and the return of the original judgment note from
Johnson's attorney.
13.
Caterbone, his heirs, executors, administrators and
assigns, for and in consideration of the sum he will receive

under the terms of this Agreement, the receipt and sufficiency of
which are hereby acknowledged, hereby releases, remises and
forever discharges Financial Management Group, Ltd., a
Pennsylvania corporation, its officers, directors, officials,
employees and agents, and Robert E. Kauffman, his heirs, executors, administrators and assigns, from any and all actions,
causes of actions, suits, proceedings, debts, judgments, damages,
claims, demands and liabilities whatsoever in law or equity, and
particularly, without limitation of the generality of the
foregoing, of and from any claims, causes of action, suits, proceedings, debts, judgments, damages, claims, demands, and liabilities arising from or in any way connected with his association
or employment with Financial Management Group, Ltd., the termination of said association or employment with Financial
Management Group, Ltd., and any conduct or activities taking
place after said termination.
It is further agreed that this
Release expresses a full and complete settlement of liability

claimed and denied, and that said payment and the acceptance of
-6-
the Release shall not operate as an admission of liability on the

part of ~inancialManagement Group, Ltd. or Robert E. Kauffman.
14.
Caterbone agrees to execute the irrevocable proxy,
coupled with an interest, attached hereto as Exhibit "B",

allowing Kauffman to vote Caterbone's presently held forty
thousand (40,000) shares of Financial Management Group, Ltd.
15.
This Agreement contains the entire understanding of
the parties and there are no representations, warranties, covenants or undertakings other than those expressly set forth
herein.
IN WITNESS WHEREOF, the parties have hereunto set their

hands and seals the day and year first written above.
RELEASE
KNOW ALL MEN BY THESE PRESENTS:
That the undersigned, a duly authorized officer of
Financial Management Group. Ltd, a corporation located at 1755
Oregon Pike, Lancaster, Pennsylvania 17601, for and in consideration of the sum of Fifteen Thousand Dollars ($15,000.00),
the receipt and sufficiency of which are hereby acknowledged,
hereby release, remise and forever discharges, on behalf of
Financial Management Group, Ltd., its officers, directors, officials, employees, successors, transferees, executors, and agents
from any and all actions, causes of action, suits, proceedings,
debts, judgments, damages, claims, demands, and liabilities whatsoever in law or equity, and particularly, without limitation of
the generality of the foregoing, of and from any actions, causes
of action, suits, proceedings, debts, judgments, damages, claims,
demands, and liabilities arising from or in any connection with
Stanley J. Caterbone's employment and assocation with Financial
Management Group, Ltd., the termination of said association and
employment, and any conduct or actions taking place after said
termination.
It is further agreed that this Release expresses a full
and complete settlement of liability claimed and denied, and that
said payment and the acceptance of the Release shall not operate
as an admission of liability on the part of Stanley J. Caterbone.
IN WITNESS WHEREOF, the undersigned has hereunto set his
, 1988.
hand and seal this
day of
BY:
EXHIBIT "A"

1755 Oregon Pike
IRREVOCABLE PROXY FOR ANNUAL MEETING 1988
AND ANY ADJOURNMENTS THEREOF
KNOW ALL MEN BY THESE PRESENTS, that I, the undersigned
Shareholder of Financial Management Group, Ltd., 1755 Oregon
Pike, Lancaster, Pennsylvania 17601, do hereby nominate, constitute and appoint Robert Kauffman my true and lawful attorney,
with full power of substitution, for me and in my name, place and
stead to vote all the common stock of Financial Management Group,
Ltd. standing in my name on its books on October 25, 1988, at the
Annual Meeting of its Shareholders to be held at the Shawnee
Resort Inn on Thursday, October 25, 1988, at 10:OO o'clock A.M.,
or at any adjournments thereof, with all the powers the undersigned would possess if personally present. I authorize my proxy
to substitute any other person to act under this proxy, to revoke
any substitution, and to file this proxy and any substitution
with the corporation.
This proxy and the authority represented herein may not
be revoked insofar as it is a proxy coupled with an interest.
Execution of this proxy confers discretionary authority to Robert
E. Kauffman to cumulate votes in accordance with his best
Number of Shares Entitled to Vote:
E X H I B I T 'B'
40,000
STANLEY J . CATERBONE
1250 Fremont Street
Lancaster, PA 17603
(717) 394-7710
January 12, 1989

Mr. Richard E. Blouse, r , President
Greenfield Associates, Ltd.
1853 William Penn Way
P.O. Box 10008
Lancaster, PA 17605-0008
Dear Mr. Blouse,
For the last e i g h t years I have been a c t i v e l y pursuing my career goals i n the
f i e l d of business and marketing development.
I have been successful i n
applying my s k i l l s as a broad-based manager and r e c e n t l y developed a
financial management f i r m w h i c h raises over $100 m i l l i o n i n new c a p i t a l
annually.
I f y o u are b y chance l o o k l n g f o r a new member w i t h these
capabilities, please give consid- e r a t i o n t o my credentials.
My a b i l i t y t o conceptualize and implement o r i g i n a l ideas, t o research and
develop new business plans, and t o define and eliminate organizational
weaknesses has been apparent i n my performance.
I am eager t o apply my
skills t o a permanent p o s l t i o n where I can demonstrate my. competence.
My compensation requirements are f l e x i b l e and may c e r t a i n l y be c o r r e l a t e d
w i t h results.
The enclosed resume summarizes my career experience.
I would appreciate
the o p p o r t u n i t y t o elaborate o n these accomplishments and t o discuss i n
specifics how I m i g h t be o f value t o Greenfield Associates, Ltd. May I meet
w i t h you f o r a personal interview?
Sincerely,
Stanley J.
Enclosure
Caterbone
STANLEY J.
CATEXBONE
1250 Fremont Street

Lancaster, PA 17603
(717) 394-7710
CAREER O B J E C T I V E
P o s i t i o n as Marketing/Business C o n s u l t a n t w i t h an aggressive company i n
need o f enthusiastic, experienced professional. Seeking long-term opport u n i t y t o commit myself t o innovative, challenging p r o j e c t s where income i s
commensurate w i t h service and results.
DEMONSTRATED QUALIFICATIONS
Diverse experience i n a l l phases o f organizational management, i n c l u d i n g
s t r a t e g i c planning, sales and marketing planning, and employee r e t e n t i o n
programs.
F u n c t i o n best when operating w i t h specific goals and objectives i n an
autonomous environment; w i l l i n g l y assume a c c o u n t a b i l i t y f o r actions.
E n j o y m o b i l i t y ; r e l a t e w e l l t o new people and new situations.
Able t o
"break ground" i n expanding e x i s t i n g and developing new clientele.
H i g h l y developed understanding o f f i n a n c i a l management operations; able t o
apply t h i s knowledge t o various business settings.
EXPERIENCE
S. J . CATERBONE ASSOCIATES, Lancaster, PA
OwnerlMarketing & Business Consultant (1987-present)
Start-up venture t o provide business and marketing expertise t o c l i e n t s via
advice o n money management, business and marketing development. Design
and develop m a r k e t i n g and business plans f o r individuals and corporations.
i n c l u d i n g m a j o r r e c o r d i n g studio i n New York C i t y ( i n proposed j o i n t
venture w i t h Sony Corporation).
F I N A N C I A L MANAGEMENT GROUP, LTD., Lancaster, PA
Cofounder; E x e c u t i v e V i c e President and Corporate Secretary (1985-1987)
Developed full-service financial organization o f f e r i n g services ranging from
conventional brokerage t o real estate, accounting, and legal services.
Organization i n c l u d e d over 60 professionals o n s t a f f as full-time, part-time,
and a d j u n c t employees. Raised over $100 m i l l i o n i n new c a p i t a l per year.
Managed business and marketing plans.
Developed f i n a n c i a l forecasts.
Secured f i n a n c i n g f r o m p u b l i c stock o f f e r i n g f o r capitalization; produced
and f i l e d o f f e r i n g memorandum w i t h federal and state securities and
exchange commissions.
Recruited s t a f f professionals; n e g o t i a t e d their
contracts. Designed, developed, installed, and administered state-of-the-art
n e t w o r k i n g computer system and i t s software. Conceptualized and founded
the Registered Investment Advisor, an FMG subsidiary which-on
a fee-forservice basis-consulted,
administered, and managed investments f o r clients.
CONTINUED
CATERBONE, S T A N L E Y J .
Page 2
D e f i n e d and i m p l e m e n t e d s t r a t e g i c p l a n n i n g process f o r c o r p o r a t e g r o w t h .
C o o r d i n a t e d e d u c a t i o n a l seminars f o r c o r p o r a t e c l i e n t s . P r o d u c e d c o r p o r a t e
video f o r m a r k e t i n g purposes. C o r p o r a t e l i a i s o n f o r a l l l e g a l m a t t e r s .
I D S / A M E R I C A N EXPRESS. Minneapolis, Minnesota. M N
Sales R e p r e s e n t a t i v e (1981-1985) .
P r o m o t e d comoanv's
. , f i n a n c i a l o r o d u c t s a n d services: d e v e l o o e d e n t i r e
c l i e n t l i s t through prospecting.
Ranked 7 t h i n n a t i o n f o r c o r p o r a t e sales
a m o n g h u n d r e d s o f " r o o k i e " r e p r e s e n t a t i v e s i n 1982.
D e v e l o p e d and
m a r k e t e d L i f e P l a n n i n g seminars f o r p r e s e n t a t i o n t o c o r p o r a t i o n s . N a t i o n a l
l e a d e r i n sales o f " f e e - f o r - s e r v i c e V i n a n c i a l
plans.
~.
EDUCATION
M I L L E R S V I L L E UNIVERSITY, M i l l e r s v i l l e ,
B.S. i n Business A d m i n i s t r a t i o n , 1980
Emphasis i n M a r k e t i n g
P A 17551
C O L L E G E FOR F I N A N C I A L PLANNING, Denver, C O

A t t e n d e d 1984-1987
AFFILIATIONS
INTERNATIONAL ASSOCIATION FOR F I N A N C I A L PLANNERS
Member; f o r m e r e x e c u t i v e v i c e p r e s i d e n t
IACC
Member; p a s t t r e a s u r e r
INSTITUTE OF CERTIFIED F I N A N C I A L PLANNERS
Member
N A T I O N A L F O O T B A L L LEAGUE
C e r t i f i e d C o n t a c t Advisor
PERSONAL D A T A
Age: 30
M a r i t a l Status: S i n g l e
E x c e l l e n t health.
E n j o y t r a v e l i n g , sports,
W i l l i n g t o travel.
REFERENCES
A v a i l a b l e u p o n request.
and reading.
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August 9, 1990
David C. Hostetter
Fulton Bank
One Penn Square
Lancaster, PA 17602
Dear Mr. Hostetter.
I have become very disappointed in your ability to correct a problem
that your bank has made regarding my personal banking account
#0118-74848. In fact, your actions have not only caused me great
concern for my investments that I have entrusted in your institution,
but I am now being humiliated and intimidated by your lack of
concern. This incident has now caused me to question whether you
have simply stolen my assets. The amount of money in question is
some $S,UW. 1,m sure not one of your larger accounts, however 1'11
fight like hell for $5,000.
You must be aware of the implications of this incident with regards
to the past performance of both commercial and, savings and loan
institutions. The public has already grown insecure and has lost a
great deal of confidence in the banking community a t large. And
maybe this is a n example of how mismanagement and abuse can
cause some of the same public insecurities a s the actual failures
themselves.
The following will depict a chronological accounting of the above
mentioned incident:
On July 31, 1990 a t 2:18pm (see MAC meipt) I was denied
withdraw privileges from my checking and Fulton Fund accounts a t
the Greenfield center. After another unsuccessful attempt, I decided
to inquire inside to a teller. I could not understand the problem,
knowing that L should have a t least $5,000 in the accounts.
The teller began an inquire on my accounts in the computer system.
After 15 minuets, she informed me that my checking account had a
0 balance. I informed her that I also had a Fulton Fund account
with sweep, and maybe there was a problem wifh that fund. Again
after 15minuets she came back with the same answer. The manager
began to become annoyed with my problem and my concern over the
situation. L asked to see some accounting, and she said she could
provide a n account activity report.
As she began scrolling transactions over the screen, I began peering

over the counter trying to review the account. I had noticed a check
for $6,250.00. I asked her if that was in fact a check for that
amount. She said "yes, number 470, made out in June". I quite
excitedly stated that I had never made out a check for six thousand
dollars in June. SHE LOOKED AT ME, QUlTE IRRITATED, AND
SAID, "WE'LL SIR, YOU MOST CERTAINLY DIDm.
--
August 9, 1990, David C. Hostetter

Now, I was emotionally shook I had just lost $5,000 or $6,0000, and
I had no idea how. I would certainly remember any check written
for $6,000. The manager had no right to even question my ability to
recollect such an incident. Instead of receiving support, and help
in dealing with my pmblem, I received harassment. Does the word
CUSM3MER SUPPORT mean anything to your organization?.
The only advice that was given by your sWY was "to go home and
check your statement". Now I must question whether you provide
any training or education to your employees.
Well, I proceeded back to my business meeting. I was quite upset
and disturbed the rest of the day, trying to determine how someone
could have stolen one of my checks without my knowledge. This was
my only logical explanation, of which the manager suggested that
the only way to recover the funds was to prosecute. That was even
more encouraging
That evening I rushed home and pmeeded to review my statements
The statement showed a debit for $6,250.
for check #470.
Corresponding t o the computer ingumbyof that day.
However, the canceled check #470 was for TWELYE HUNDRED
AND FIIiTY DOLIARS". I will admit that the $1,250.00 could look
like a six (SEE COPY). But isn't that why we write the amount out
in longhand?? At this point I was just elated to have recovered my
lost $5,000, (for approximately 37 days).
The next day I had made copies of the check at my oflice, and
proceeded to the Greenfield branch a t noon, on August 1st. I took
the original check and copies of my statement. Before I r e a c h d the
counter, the teller asked "if I had found my problem?' I said 'no, I
found your problem". I went on to display the check, and also give
my dissatisfaction with the attitude by the Manager that I had
forgotten about a $6,000 check, and that the customer service was
really customer intimidation. Never once did anyone mention o r
suggest that there could be a n error in the accuunts, and that maybe
because I had never remembered writing a checkout for $6,000, that
maybe I never did.
.r
The teller was polite and understanding, she pmceeded with my
check to the Manager's office, and returned notifying me that she
would need to take possession of the actual check for veri@ation.
August 9, 1990, David C. Hostetter

She inCormcd me that the account would be brought current t h a t
day, August 1, 1990. I asked her how I could withdraw cash, being
I still had no means of getting cash. She asked me to write a check
out made payable for cash (see check #486). She handed me $50.00
in cash.
Excluding the lost interest and any cancelled check fees, - I thought
I was made
whole.
TODAY LS A U G U S 9,U)90
I HAVE A CURRENT BAUNCE OF S 129.61I STILL RECEXVE CANCELLED CHECK NOTICES
I CONTINUE TO HAVE CREDITORS NOT BEING PAID

I CONTINUETO HAVEMYCREDITAI)VERSELYAFFE(;TEDBY
YOUR ACTIONS AND N E G W
YOUR INSIlTUTION REFUSES TO RERJRN MY ASSETS
I CONTINUE TO EXPERIENCE %lXESS AND -ATION

FROM YOUR LACK OF CONCERN FOR ME
CUSOhER
NOW, YOU IMVE A PROBLEM.
Regards,
Stan J. Caterbone
"Just" a Customer
ENCLOSURES
CC
YOUR
~~
~.
U.S.(except DE) < 8 0 d - $ 3 3 ~ 1 ~ ~

FAX: (302) 472-2512
TELEX:6502917i'O.: MCI W
FOIlKi'.OM
SUITE 203
1:E
September 2 4 , 1990
Facsimile
General S e r v i c e s Board of Contract Apaeals
General S e r v i c e s Administration
10 & F S t r e e t s , N . W .
Washington, DC 2 0 4 0 5
Attn:
c l e r k of Court
\,..
n.',~
-
T h i s p r o t e s t is being f i l e d pursuant t o t h e R u l e s 5 ( a ) ( 2 )
and 7 ( b ) ( 2 ) of t l i e GSBCA by P h i l i p s and Du Pont O p t i c a l Company
("PDO") t o p r o t e s t t h e a c t i o n s of t h e Defense ~ s p p i n gAgency
Aerospace Center/AQM i n t h e evaluatior. and award o f a c o n t r a c t i n
c o n n e c t i o n w i t h Recpest f o r Proposal bearing S o l i c i t a t i o n
KDMA700-90-R-0011 d a t e d June 1, 1 9 9 0 ( t h e " S o l i ~ i t a t i o n ~ ~ ) .
P u r s u a n t t o R u l e 5 ( b ) ( 3 ) (ii)t h i s p r o t e s t is b e i n g f i l e d w i t h i n
PDQ
t e n ( 1 0 ) dnys a f t e r t h e b a s i s f o r t h e p r o t e s t w a s known.
p u r s u a n t t o Rule 1 9 ( a ) ( 2 ) r e q u e s t s a suspension h e a r i n g t o
suspend procurement a u t h o r i t y pending a d e c i s i o n on t h e m e r i t s .
Backqround
PDO , a j o i n t v e n t u r e between Nederlandse philips B e d r i j v e n
B.V. and E . I . du Dont d e Nemours and Company, r e c e i v e d t h e
above-referenced S o l i c i t a t i o n . o n June 6 , 1990 from t h e Defense
Mapping Agency, Aerospace Center/AQM, 3200 S o u t b Second S t r e e t ,
S t . Louis, MO
63118-3399.
The C o n t r a c t i n g O f f i c e r i n charge ,of
t h e S o l i c i t a t i o n i s William M. Nelson.
The S o l i c i t a t i o n was f o r
t h e p u r c h a s e o f conversion of mapping, charting and g e o d e t i c d a t a
t a p e s t o compact d i s c read only memory (CD-ROM) s t o r a g e m e d i a
a n d , t h e r e f o r e , GSBCA h a s j u r i s d i c t i o n as t h i s i n v o l v e s
procurement o f automated d a t a p r o c e s s i n g equipment.
According t o S e c t i o n M-2 of t h e S o l i c i t a t i o n , e v a l u a t i o n o f
p r o p o s a l s was t o made u s i n g t h e G r e a t e s t Value S c o r e t e c h n i q u e
and award would be made t o t h e proposal d e t e r m i n e d t o be t h e most
advantageous t o t h e Government, c o s t o r p r i c e and o t h e r f a c t o r s
considered.
F u r t h e r , p r i c e was s t a t e d t o be a s u b s t a n t i a l f a c t o r
b u t n o t as i m p o r t a n t a s t e c h n i c a l and was n o t n e c e s s a r i l y
c o n t r o l 1i n q .
A N D
D U
P O N T
Date for sub1:lissio:: o f ?ropOs2ls was i n i t i a l l y J u l y 2 , 1990,

b u t l a t e r extended t o J u l y 1 6 , 1 5 3 0 . Section L - 9 oC t h e
s o l i c i t a t i o n r e q u i r e d submission of t h r e e ( 3 ) sample d i s c s f o r
e v a l u a t i o n u s i n g t h e performance c r i t e r i a contained i n t h e
s t a t e m e n t of Work (Attachment ( 2 ) t o t h e S o l i c i t a t i o n ) . P W
s u b m i t t e d i t s p r o p o s a l i n f i v e volumes alonq with t h r e e sample
d i s c s on J u l y 1 2 , 1 9 9 0 .
On August 2 9 , 1 9 9 0 , B e s t and F i n a l Offers r.jere requesteci and
PDO s u b n i t t e d i t s response on August 31, 1 9 9 0 .
On September 6 ,
*
i'
i
1990, a second B e s t and Tina1 O f f e r was requested by t h e

C o n t r a c t i n g O f f i c e r of t h e Defense Mapping Agency t o which PDO
responded and, i n a d d i t i o n , i n q u i r e d as to t h e grounds f o r such
an unusual r e q u e s t .
On September 1 3 , 1990, a r e p r e s e n t a t i v e of PDO c a l l e d kine
Agency t o l e a r n t h e s t a t u s of t h e bid and was informed Ynat it
d i d n o t r e c e i v e t h e award. By l e t t e r d a t e d September 1 2 , 1990,
PDO was informed t h a t i t s o f f e r could n o t be c o n s i d e r e d f o r
award.
F i n a l e v a l u a t i o n r e f l e c t e d acceptable t e c h n i c a l and
manaqement p r o p o s a l s b u t t o t h e i r assigned weight t h e o v e r a l l
PDO r e q u e s t e d
s c o r e was n o t t h e most advantageous t o t h e Agency.
a d e b r i e f i n g meeting and t h i s was h e l d on September 1 9 , 1 9 9 0 i n
S t . L o u i s , MO.
A t t h i s conference, information r e g a r d i n g t h e
a c t i o n s of t h e Defense Mapping Agency wac l e a r n e d which forms t h e
basis f o r t h i s protest.
Basis f o r Protest
A t t h e d e b r i e f i n g conference, PDO was informed t h a t t h e
t h r e e ( 3 ) sample d i s c s were t e s t e d by a member of t h e t e c h n i c a l
e v a l u a t i o n team a g a i n s t t h e p e r f o m a h c e c r i t e r i a .
One d i s c
passed t h e s p e c i f i c a t i o n s .
The o t h e r two f a i l e d t h e
s p e c i f i c a t i o n s b u t i n only one o f t h e more t h a n s e v e n ( 7 )
criteria t o b e t e s t e d a g a i n s t .
A v i s i b l y obvious:surface d e f e c t
was observed o n each of t h e f a i l e d d i s c s near t h e outer r i n
r e n d e r i n g t h e d i s c s unusable f o r c e r t a i n purposes.
This s u r f a c e
d e f e c t was t h e b a s i s f o r f a i l u r e of t h e d i s c s and c o u l d o n l y h a v e
o c c u r r e d w h i l e t h e d i s c s were i n t h e p o s s e s s i o n and c o n t r o l o f
t h e Defense Mapping Agency.
P r i o r t o submission of t h e saraple discs t o t h e Agency, PDO

t e s t e d them a g a i n s t t h e performance c r i t e r i a listed i n t h e
S t a t e m e n t o f Work and a l l t h r e e d i s c s passed t h e criter-ia and
there w e r e no v i s i b l e d e f e c t s on t h e d i s c s t s u r f a c e s . '-PW was
n e v e r informed of t h e d e f e c t .
I f PW had been informed o f t h e
v i s i b l e d e f e c t i n t h e sample d i s c s during t h e Agency's e v a l u a t i o n
p r o c e s s it would have had t h e o p p o r t u n i t y t o r e s u b m i t d i s c s f o r
evaluation.
The Agency would h a v e t r e a t e d a l l q u a l i f i e d o f f e r e r s
e q u a l l y and f a i r l y as r e q u i r e d by t h e Competition i n C o n t r a c t i n g
Act.
A t t h e d e b r i e f i n g c o n f e r e n c e , i t was lea-ned t h a t t h e p r i c e s
q u o t e d by PDO were s u b s t a n t i e l l y lower thzn tie a p p a r e n t
The t e c h n i c a l disc d e f e c t d e s c r i b e d above
awardeels prices.
formed t h e b a s i s o f t h e t e c h n i c a l s c o r e . It i s c l e a r t h a t b a s e d
upon t h e e v a l u a t i o n p r o c e s s s e t f o r t h i n t h e s o l i c i t a t i o n a n
o p p o r t u n i t y t o r e s u b m i t d i s c s damzqed k7'nilc in t h e p o s s e s s i o n o r
t h e Agency would h a v e p o t e n t i a l l y r a i s e d t h e t e c h n i c a l s c o r e o f
PDO t h e r e b y making PDO e l i g i b l e f o r award of a c o n t r a c t .
A t t h e d e b r i e f i n g c o n f e r e n c e , i t was l e a r n e d t h a t
3,
.:
he b a s i s
f o r t h e s e c o n d B e s t and F i n a l O f f e r was t h e need t o o b t a i n
f u r t h e r p r i c e a n d d e l i v e r y i n f o r m a t i o n from t h e a p p a r e n t awardee
o f t h e c o n t r a c t , D i g i t a l Audio Disc Corp. ("DADC"), Sony
Corporation.
Communication w i t h a l l o f f e r e r s must b e i n l i n e
w i t h l a w s a n d p r o c u r e m e n t r e g u l a t i o n s r e q u i r i n q f u l l and open
c & n p e t i t i o n among a l l q u a l i f i e d o f f e r e r s and f u r t h e r r e q u i r i n g
equal t r e a t m e n t o f o f f e r e r s during t h e evaluation process.
If
c l a r i f y i n g i n f o r m a t i o n was r e q u e s t e d f r c x Sony, it would a p p e a r
t h a t p r o v i d i n g a n o p p o r t u n i t y f o r PDO t o r e s u b m i t discs would b e
proper.
W e r e s p e c t f u l l y r e q u e s t prompt c o n s i d e r a t i o n a n d a c t i o n o f
our protest.
"
Rushton T. c a p e r s
CD-ROM P r o d u c t Manager
P h i l i p s a n d Du P o n t o p t i c a i Compan:
address:
P h i l i p s a n d Du P o n t O p t i c a l Company
1409. F o u l k R d . , S u i t e 200
Wilmington, DE 19803
t e l e p h o n e numbers:
(302) 479-2501
f a : (302) 479-2512
cc:
Defense Mapping Agency/Aerospace C e n t e r

Attn:
AQ
3200 S o u t h Second S t r e e t
St. L o u i s , HO 63118-3399
E l i z a b e t h Curtis Swain, E s q .
E. I. du P o n t de Nemours and Company
Tho DefidUve
Source of CD-ROM
inlofmatlon
5 70 Norflr IVa$h:c~ton%at
Suto 4
Falls Chv;sh. VA 2 z ~ r ) - 3 5 3 7
703p37.OSeZ FAX 703/533~17
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COMPANS:
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NUMBER OF PAGES:
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DISC R4agazlne kut

Linda W. Helgerson
1991 Calendar and Schedules
October 22, 1990
"How can you possibly keep the same consistent depth, quality and variety of
zirtides?" This question and tons of kudos wers the reactions to the premier issue of
DISC Magazine. Certainly we worked hard, but so did you and it showed. I cannot
thank you enough for your initiat contribaion. Istrongly encourage you to continue with
the depth and quality of your first effort.
--
Most authors I have talked with have said how many telephone e i l s they have
received as a result of their articles. This pleases me, because my interest in publishing
DlSC is to increase the communication among the experts and those that need to learn.
The articles themselves provide this. By giving authors FULL credit, we are also providing
a means for follow-on discussions.
Beginning in January 1991, we intend to publish DlSC Magazine each month.
!Each issuewill contain a CD-ROMcalled disc/in/DlSC, feature articles, regular columns,
departments such as multimedia, standards, hardware, etc., and finally a covar story,
comprised of a series of in-depth descriptive, educational and analytical articles. The
1991 calendar for the cover story in DlSC follows:
l!dQ!Xb
Cover Story
January
February
March
April
May
June
July
August
September
October
November
December
Images (Photographs & Video) on CD-ROM

CD-ROM Drives
Multimedia Authoring Systems & Software
Data Preparation & Tagging

Networking CD-ROM.Databases
Audio on CD-ROM
GIs & Mapplng Data on CD-ROM
Prernasterlng Systems & Sofhvare .
Graphics an CD-ROM
CD-ROM indexlng 81Retrieval Software
Data Conversion
Marketing & Distribution
LOGISTICS: The first page of an rrticls is approximateP$EOO vtards. Each page

thereafter is 1,200 words. Tharefore, a t ~ o - p a g ecolumn, for examp!9, equals 2,000
words. Each chart or table is equivalent to approximately 200 words. ivlany of you have
asked, so here is the specific information.

The Imgth of an aarticle is not a problem for us. We would like columnists to have
at least a two-page article, but some in the prerrtier issue were only one page and highly
effective. Others were extensive, and that's okay too.
All copy is due 45 days BEFORE the month cf publication. Therefore, your next
column or article far the January issue is due by November 15th. We prefer to have
hardcopy of the article accompanied by a diskette with the text. We can conven almost
anything as long as we know the original word processing program. Vde use WordPerfect
5.1 in DOS. Please send a hardcopy of each of your charts, graphs or tables. We also
appreciate photographs, either black and white or color if they are appropriate.
PHOTOGRAPHS: We would like to have photographs for ALL columnists to
accompany their signatures. We intend to vary the photographs from month to month,
depending on the tone of your column, SO therefore we kvill need many different poses.
Would you please supply us with three color and three black/white photos. If you only
have one type available, please provide the three black/white photcs.
(-'
Your picture should be taken frotn the Tie Knot (or equivalent) up. The following
over your left shoulder. The
poses are suggested: one smiling, one serious, one Io~king
background should be a neutral grey. We would prefer to receive the phdos in 3' x 5"
color proofs, but negatives or slides are acceptable.
SUGGESIIONS. ADVICE&OTHER GREAT IDEAS: Now that we have produced
and you have studied the premier issue of DISC, you should know that we are VERY
open to suggestions and comments. For example, there are many people out there with
an informative story to tell others. Please suggest to them that they contribute to DISC,
or let me know and Iwill contact them directly. Although the first issue seems io contain
most all of the basic CD-ROM Information, we have only just begun. There is so much
to clarify, demystify, explain and so many people who want to learn. We ate particularly
looking for articles that tell how firms published discs themselves, the problems. the
decisions, the trials and opportunities. Help us to find them, if you would.
FINALLY. dlsc/in/DlSC: This CD-ROMis for use BY the CD-ROM industry. If

you want to distribute to thousands of people, dlsc/in/DISC is the method. You may
wish to use examples on disc/ln/DiSC to accompany your ariicle. The full texf of a
standard, demonstrations of user interfaces, public domain software or shareware,
minutes of meetings, demonstrations of something to enhance your articles -- al! these
and plenty of other ideas I haven't thought of are most acceptable. If something is
STRICTLY advertising, then we intend to charge but the cost is very small compared with
Steve Soto is Editor of
the numbers who wit1 receive and use dlsc/in/DISC.
dlsc/in/DiSC. Cantact him to discuss details.
TRADE SERVICE
1 0 9 9 6 TORREYANA ROAD
S A N DIEGO. CALIFORNIA 92121-1192 PHONE (619) 4 5 1 ~ 5 9 2 0
September 24, 1987

Stan Catderbone
2323 New Danville Turnpike
Conastoga PA 17516
Dear Mr. Catderbone:
your rs~;rrunct 'el- i.!-:f?r?Llt.:
r.3 c:: thr.
publications that we have available for the Music/Entertainment
Industry.
Th.r??c ynu
fr?r
We are pleased to enclose descriptive literature which

should answer many of your questions. Also enclosed you will find
rate information and order forms.
If you need any assistance or have any questions please call

our Marketing Services Department toll free at (800) 854-1527
(outside California) or (800) 542-6421 (inside California).
We look forward to serving you.
Sincerely,
TRADE SERVICE CORPORATION
H. A. Weber
Circulation Supervisor
HAW: raa
Encl. MVA
Telephone
703 790 9844

Financial Management Group, LTD.
5 5 4 Berkley Road
Stone Harbor, NJ
08247
Dear Stanley:
Thank you for the opportunity to review your York,
Pennsylvania property. Enclosed are your proposal presentations. Unfortunately, we can not proceed on this
activity due to our present commitments.
We wish you continued success.
Sincerely,
L&
sames A. Schretter
JAS:nn
Enclosure
An Afhllate of
Source Internattonal. Inc
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T H E A S S I S T A N T S E C R E T A R Y OF D E F E N S E
WASHINGTON. D. C . 20301-1300
October 23, 1990

In reply refer to:
OSD # 19043
Honorable Robert S. Walker
Washington, D.C. 205 1 j
Dear Rob:
I have received your letter of October 15. regarding an inquiry from Mr. Stan J. Caterbone,
concerning a protest on a contract award.
In order to be of service to you, I have referred this matter to the appropriate agency within
the Department of Defense for direct reply to you.
If I can be of further assistance to you, please do not hesitate to let me know.
Assistant Secretary of Defense

Lqislahve Affairs
C0NUI"C~
VICE CHAlRMAN
:$LNCE. SPACE A N 0 TECHNOLOGY
$joust of Beprerjentatiberj
ZiT4ar?!1ington, BE 20525
October 31, 1990
Mr. Stan J. Caterbone

Director
Advanced Media Group
Dear Mr. Caterbone:
Enclosed please find a copy of an interim report I have recently
received on your behalf.
You may be assured that I will continue to follow the progress of
this matter and that I will be back in touch with you when
further information becomes available.
I
6 C)
Your patience is appreciated.

K
y
,
d
L
obert
Enclosure
S.
Wa ker
.,
. ~.
~,
..
...
1-
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~-.:.~
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~...~s...-so,rz.w.
one d them, however, onicials now say.
The Ferranti fraud
Officials describe an international charade of 'cardbl

companies, secret bank accounts, a non-existent co~
r
Mekeel and Ernest Schrelber

w Era Staff Writers
%Tim
he contract was code-named

"Khyber Pass" and it was the
most sensitive of ISC Technologies L t d . ' s many so-called
"black"or secret programs.
As tight-lipped insiders describe it, the
English ISC subsidiarv. nicknamed Terh
1.td.. had hecn hlrc'd tofiovidc ~ a k ~ s t wlth
an
the equipment and know-how to manufac.
ture a t least three state-of-the-art air and
ground missile systems.
The manufacturing equipment supposedly
would be installed for the government. of
then-president Mohammad Zia ul-Haq in
northern Pakistan, just east of the legendary
mountain pass, not far from the Afghan-Russian border.
Between late 1986 and early 1989, Tech Ltd.
paid out more than $350 million - "laundered" through front companies - supposedly to suppliers of the missile manufacturingequipmmt.
Company records in England showed the
missile systems were installed and supposedly earned more than $100 million in profits.
But in spring 1989. Ferranti executives
found sorncthing amiss a t Tech Ltd.: a lack
of consistency among the dates on paper-
wnrk
...
Questions turned to doubts, then to suspicions, a s other discrepancies emerged.

The payments from Pakistan unaccountably stopped. The front companies went out
of business, again without explanation.
~
~.
. ~..-- -
Three months ago Ferranti International, the British defense giant,

charged that it fell victim to a $350
mzllion fraud when it merged with
International Signal & Control, the
conglomerate founded here by former Lancastrian James H . Guerin.
This story presents the first detailed
account of how oflcials believe a
massive fraud - stretching from
England to Pakistan,from South Africa to China - was devised and
concealed. The information comes
from investigators and company insiders, all of whom spoke on the condition that they not be identzfied because of pending lawsuits and investigations.
Perhaps of greatest significance, company

founder James H. Guerin, who had brought
in the contract, acknowledged in answer to
inquiries from other company directors that
o a ~ e r w o r kon the deal didn't exactlv match
ih6 way the contract actually had been handled, company officials say.
In September, Ferranti International.
which had bought Tech Ltd. a year after the
supposed Pakistani deal, declared ,it was a
victim of fraud.
Two months later it sued to recover a portlon of its losses. $198.5 million, from Guerin,
three of his employees a t Tech Ltd. and live
front companies.
.
+
-
Now, a s Ftilanti officials p

their case to court, past and p~
there sav thcv are certain the
w:as fak; and'wa- t n e ccn1el.p.
mcntal and cctmplt.h fraud at 1
The missile construction t
how-to manuals were not sold
Pakistan, Ferranti officials s
thirds of the 5350 million supp
get theproje\:t going is missin
"This will clearly go down
of the biggest defense frauds
one of the most cleverly orcht
a former Ferranti financialof
The New E r a obtained its
alleged fraud from four pres,
Ferranti financial officials
board member- all of whom
tionof anonymity.
Their description was confi
ernment investigator familial
In interviews, the Ferran
scribed schemes hidden by a
of inventory, questionable L
thorizations, impostors who
tract managers and a Pakist
era1 whose role in the matte
unraveled.
Who masterminded the elat
remains uncertain, accordir
cials. There a r e a t least thre
Uley said.
-~~
..
~
See FERR
James Guerln
Thomas Jasln
R. Clyde Ivy
Probers finding
ISC's S. African
ties were close
Thomas L Flannery
lntell~gencerJournal Stan
Federal investigators probing

alleged criminal activity by former Lancaster businessman
James H. Guerin within his defense electronics firm, International Signal & Control Corp.,
now believe the firm was one of
the key cogs in a sophisticated
U.S. military electronics procurement wheel set in motion
here by the South African government.
Speaking on the condition of
anonymity, federal investigators
told the Intelligencer Journal
that Guerin and former top ISC
executive; R. Clyde Ivy, used
their numerous contacts within
South Afr~ca'sgovernment-conl
Rarlow
trolled ~ n d u s t r ~ aglant,
Rand, to assist the Pretoria government in establishing myriad
companies whose sole mission
was to circumvent U.S. military
equipment embargoes.
Court testimony in late 1990 revealed that both Guerin and ISC
-subjects of a multi-agency federal irivestigation now hits-third
year -were suspected of illegally selling embargoed military
technology to South Africa ior
years. However, the scope, methods employed and depth of involvement in this clandestine o p
eration were never disclosed. .
Guerin has also been linked to
Chilean arms dealer Carlos Cardoen, supplying him with sophis-
lnvestiaators believe
ISC plgyed a key part in
obtaining sophisticated
U.S,mjljfaryelectronics
for the South African
government.
i
For ISC. now ~ e k a n tInternational PLC,one d t h e key companies within its incestuous c o r n
and unknown-to
rate maze
many of its employees- was ISC
EducationalSystems.
Com~anyliterature touted it a s
a purveyor of remedial education
programs for adult blacks. Federal investigators said it had another function, that of supplying
South Africa with small, sophisticated computers destined for the
gu~dance systems- of Israelibuilt. nuclear-camble ICBMs
and other weapon$related components.
Formed in 1986"Ed Systems."
as it was known: fit neatlv
- - - - " inin
the Barlow ~ a d dplan in that
computer technology could easily move from Lancaasterto South
Africa under Deoartment of
State licensure a s aheducationai
product and, upon arrival in
Johannesburg, be easily reconfigured to supportthe South African missile and weannna
.. .=
. .
..
. dpv-1-- .-o&nentprograms.
"Ed Systems probably did, a t
DEFENSE MAPPING AGENCY

& I 3 LEE HIGHWkY
F I I R F M . VIRGINIA 22031~2131
American H e l i x T e c h n o l o g y Corp.
ATTN:
Mr. S t a n C a t e r b o n e
1857 C o l o n i a l V i l l a g e Lane
L a n c a s t e r , PA 1 7 6 0 1
Dear Mr. C a t e r b o n e :
T h i s l e t t e r is t o i n f o r m you t h a t t h e Defense Mapping Agency
A e r o s p a c e C e n t e r (DMAAC) h a s d e t e r m i n e d t o t e r m i n a t e C o n t r a c t
Number DMA700-90-DO011 w i t h D i g i t a l Audio D i s c C o r p o r a t i o n a n d
t o p r o v i d e a l l c o m p a n i e s which s u b m i t t e d p r o p o s a l s u n d e r R F P
Number DMA700-90-ROO11 a n o p p o r t u n i t y t o r e c o m p e t e f o r award o f
t h i s contract.
T h i s a c t i o n is being taken i n response t o a
p r o t e s t which o n e o f t h e c o m p e t i t o r s f i l e d w i t h G e n e r a l
S e r v i c e s Board of C o n t r a c t Appeals.
'
I n r e s p o n s e t o t h e p r o t e s t , t h e DMAAC a g r e e d t o t e r m i n a t e i t s
c o n t r a c t w i t h D i g i t a l Audio D i s c C o r p o r a t i o n a n d t o r e o p e n
discussions w i t h a l l o f f e r o r s i n competition for c o n t r a c t
award.
T h i s a g r e e m e n t was n e c e s s a r y b e c a u s e t h e DMAAC f a i l e d
t o disclose correctable deficiencies i n the arotester's
p r o p o s a l d u r i n g d i s c u s s i o n s w i t h t h e p r o t e s t e r a s r e q u i r e d by
FAR 1 5 . 6 1 0 ( ~ ) ( 2 ) .
Accordingly, I have determined t h a t under t h e c i r c u m s t a n c e s t h e
most a p p r o p r i a t e c o u r s e o f a c t i o n is t o p r o v i d e a l l o f f e r o r s a n
o p p o r t u n i t y f o r m e a n i n g f u l d i s c u s s i o n s by r e o p e n i n g t h e
p r o c u r e m e n t u n d e r t h e c o n d i t i o n s s e t f o r t h below.
The u n i t p r i c e s c o n t a i n e d i n t h e c o n t r a c t awarded t o D i g i t a l
Audio Disc C o r p o r a t i o n were d i s c l o s e d d u r i n g t h e d e b r i e f i n g
process.
A s a r e s u l t , i t is necessary t o place a l l c o m p e t i t o r s
on a e q u a l f o o t i n g with regard t o t h e d i s c l o s e d u n i t p r i c e s .
::
:
;
Accordingly, s h o r t l y b e f o r e t h e n e g o t i a t i o n s a r e reopened, t h e
DMAAC w i l l p r o v i d e e a c h o f f e r o r who e l e c t s t o p a r t i c i p a t e , i n
a c c o r d a n c e w i t h t h e p r o c e d u r e s s e t f o r t h below, t h e most r e c e n t
u n i t p r i c e s o f f e r e d by a l l p a r t i c i p a t i n g c o m p e t i t o r s . , The
DMAAC w i l l t h e n r e o p e n n e g o t i a t i o n s w i t h a l l p a r t i c i p a t i n g
competitors.
A l l p a r t i c i p a t i n g c o m p e t i t o r s w i l l be i n f o r m e d o f
the
d e f i c i e n c i e s o r weaknesses of t h e i r p r e v i o u s p r o p o s a l . A t t h e
completion of the negotiations, a l l p a r t i c i p a t i n g competitors
w i l l be given t h e o p p o r t u n i t y t o r e v i s e t h e i r p r o p o s a l s and
submit a b e s t and f i n a l o f f e r (BAFO).
S h o u l d you d e t e r m i n e t h a t you do n o t w i s h t o h a v e t h e u n i t
p r i c e s from your p r e v i o u s p r o p o s a l r e v e a l e d , o r t h a t your
company d o e s n o t w i s h t o c o n t i n u e i n t h e p r o c u r e m e n t p r o c e s s
f o r o t h e r r e a s o n s , I r e q u e s t t h a t you t e l e p h o n e me a t ( 3 1 4 )
2 6 3 - 8 5 0 2 no l a t e r t h a n t h e c l o s e o f b u s i n e s s o n 5 November
1990. P l e a s e f o l l o w - u p t h e phone c a l l w i t h w r i t t e n r e s p o n s e .
Send w r i t t e n r e s p o n s e t o :
D e f e n s e Mapping Agency
ATTN:
DFCO(STL)/William M .
3200 S o u t h Second S t r e e t
S t . L o u i s , MO 63118-3399
Nelson
I f you d o n o t w i s h t h e u n i t p r i c e s f r o m y o u r most r e c e n t
p r o p o s a l r e l e a s e d , y o u r r e q u e s t w i l l be h o n o r e d ; however, you
w i l l b e g i v e n no f u r t h e r i n f o r m a t i o n c o n c e r n i n g t h e DMAAC'S
assessment of your proposal nor u n i t p r i c i n g information
c o n c e r n i n g t h e o t h e r o f f e r o r s . Moreover, w h i l e y o u r p r e v i o u s
p r o p o s a l w i l l be e v a l u a t e d and c o n s i d e r e d f o r p o t e n t i a l
c o n t r a c t award, n o f u r t h e r r e v i s i o n s t o your p r e v i o u s p r o p o s a l
w i l l be allowed.
I f I d o n o t t o h e a r from you, I w i l l a s s u m e
t h a t you h a v e n o o b j e c t i o n t o y o u r p r e v i o u s p r o p o s a l p r i c e s
being released.
l e t you know a s s o o n as t h e s c h e d u l e f o r n e g o t i a t i o n s i s
developed.
I w i l l
Sincerely,
"'I
JI'
--)1L-*--.
NELSON
Contracting Officer
WILLIAM M.
sllrr
(*I C M - C C ~
167" O I I ~ ~ C I .PEWNIILVANIA
CONNIE L THVMS
CHlEF D E P U N REPUBLICAN WHlP
W I i N I N G T O N OFIS,
MARC T. PHlLClP
COUHITTEb
DlSTRlCT OF'lCEI
VICE CHAIRMAN
GjENcE. SPACE AND TEcuNOLOGy
~ O I I ofS %
~e p r e s c n t a t i b e ~
ZZJa5f~irrgton,33C 20515
... .
November 8, 1990

Director
Dear Mr. Caterbone:

Enclosed please find a copy of correspondence which I have
recently received from the Defense Mapping Agency with regard to
your concerns about their handling of your proposal for a
government contract.
<-,
t
'-
!- -
I trust that this information will be helpful to you and that you
will not hesitate to contact me whenever you feel I may be of
assistance.
dc
Enclosure
!
D E F E N S E MAPPING AGENCY
M O LEE
HIGHWAY
F l l R F U . VIRGINIA 220312137
AQ
.\&:...
.~,
.c:
.
. ,.
xi
3 1 0CT 1990
Honorable Robert S. walker

House o f R e p r e s e n t a t i v e s
W a s h i n g t o n , D.C.
20515
Dear Mr. W a l k er :
T h i s is i n r e p l y t o you r l e t t e r of 1 5 O c t o b e r 1990 t o t h e
O f f i c e f o r L e g i s l a t i v e A f f a i r s , De p a r t me n t of D e f e n s e on b e h a l f
o f y o u r c o n s t i t u e n t , Mr. S t a n J . C a t e r b o n e , D i r e c t o r o f
A me ri c a n H e l i x T e c h n olo g y C o r p o r a t i o n . n i s i em e r n i n g
D e f e n s e Mapping Agency (DMA) C o n t r a c t DM~700-90-D-0011 h a s been
f o r w a r d e d t o t h i s Agency f o r a c t i o n . DMA is aware of t h e
s i t u a t i o n a nd i s making e v e r y e f f o r t t o r e s t o r e a l l c o m p e t i t o r s
t o an equal basis.
The c o n t r a c t , which was awarded t o D i g i t a l A u d i o D i s c
C o r p o r a t i o n ( D A D C ) , was t e r m i n a t e d a s a r e s u l t of a p r o t e s t .
A l l c o m p a n i e s which s u b m i t t e d p r o p o s a l s u n d e r R e q u e s t f o r
P r o p o s a l DMA700-90-R-0011 w i l l be g i v e n a n o p p o r t u n i t y t o
r e c o m p e t e f o r award o f t h i s c o n t r a c t . D A D C ' s u n i t p r i c e s w e r e
d i s c l o s e d d u r i n g t h e normal d e b r i e f i n g p r o c e s s p r i o r t o t h e
protest.
The c o n t r a c t i n g o f f i c e r h a s d e v e l o p e d a p r o c e d u r e f o r
t h e recompetition w h i c h w i l l place a l l competitors on an equal
f o o t i n g a n d p r o v i d e them w i t h e q u i v a l e n t i n f o r m a t i o n .
E s s e n t i a l l y , a l l c o m p e t i t o r s w i l l h a ve t h e o p t i o n t o : ? e v e a l
t h e i r p r i c e s and p a r t i c i p a t e i n f u r t h e r n e g o t i a t i o n s o r t o
r e f u s e which w i l l r e s u l t i n t h e i r c u r r e n t p r o p o s a l s b e i n g
evaluated a s submitted.
DMA is d e d i c a t e d t o p r e s e r v i n g t h e i n t e g r i t y o f t h e c o m p e t i t i v e
p r o c u r e m e n t s y s t e m . The a p p r o a c h we a r e u s i n g h a s b e e n u s e d
s u c c e s s f u l l y i n t h e p a s t un d er s i m i l a r c i r c u m s t a n c e s by o t h e r
a g e n c i e s . T h e r e f o r e , we a r e c o n f i d e n t t h a t t h i s p r o c e d u r e w i l l
e l i m i n a t e an y p r e j u d i c e s u f f e r e d b y y o u r c o n s t i t u e n t .
.Sincerely,
B r i g a d i e r G e n e r a l , USAF
C h i e f of S t a t t
D R A F T -- N O T F O R P U B L I C A T I O N
Escaping the UNM1 Tar Pit

Producing CD-ROMs in the UNIX Environment2
Stan J. Caterbone
John S. Garofolo
Direclor of CD-ROM T~chnolocier

- for
Arneriwn lielki Technology Corporation
and Dircrror of M v a n c z d Media Group. Lad.
Lancaster, PA 17601.
C o m ~ u l uScicnlist
National lnstitulc of Slandardr and lirhnology
Tcchnolom Llu:ldinc. Room A.216
Phone: (800) 5254575
Phone: (301) 975-3193

Email: john@ui.nal.nist.gov
Fax:(717) 392-7897
Just when things are going smoothly, and we begin to feel a little too comfortable and too
confident with CD-ROM technology, someone or something puts us in our place -- and
thankfully so. It's these challenges that facilitate our progress toward broadening the
horizons of CD-ROM technologies.
This article is intended to inform publishers and manufacturers of the problems that can he
encountered in using UNIX tar-formatted files as a medium of data submission for CDROM production and some of the issues confronting the next generation of CD-ROM
publishers.
.3
Databases developed on non-DOS-based3 systems which have performance requirements

that exceed MS-DOS capabilities are becoming more commonplace. Ironically, the existing
CD-ROM production infrastructure has been created and supported primarily by DOS-based
systems. Although we are making progress in publishing data on other platforms, a large
majority of the CD-ROMs published today are still designed on DOS machines for use on
DOS machines. The current tendency to link CD-ROM with DOS is making difficult the
implementation of CD-ROM technology on non-DOS systems and, therefore, slowing its
widespread acceptance.
'UNIX is a trademark of American Telephone and Telegraph, I n c (AT&T).
2Disclaimer: Cenain trade names and company products are mentioned in the text in order to adequately
specify procedures and equipment used. In no case does such identification imply recommendation or
endorsement by the National Institute of Standards and Technology, nor does it imply that the products arc
necessarily the best available for the purpose.
'DOS is a trademark of the International Busiliesb Machines Corporation (IBM) and MS-DOS is a
trademark of the Microsoft Corporation.
DRAFT - NOT FOR PUBLICATION

The ensuing paragraphs illustrate the need for the CD-ROM industly become more in tune
with the trends which are shaping information technologies. CD-ROM, which is one such
information technology, is beginning to recruit a new breed of both users and publishers,
which are hoping that CD-ROM will adapt to them, as opposed to them having to adapt to
it. The Automated Speech Recognition Group of the National Institute of Standards and
Technology (NIST) is one such CD-ROM publisher.
The NIST Automated Speech Recognition Group

Sponsored in part by the Defense Advanced Research Projects Agency Information Science
and Technology Office (DARPA-ISTO), the group designs and implements methods of
performance evaluation for spoken language systems. These systems consist of natural
language understanding as well as speech recognition components. Additionally, it
distributes databases, or corpora, of speech recordings as standard reference material for the
development and evaluation of these systems.
'i
-I
Traditionally, these speech corpora have been recorded and stored in a digital form rather
than in an analog audio format. This allows the data to be easily loaded, stored, and
manipulated in computers and prevents signal degradation in copies. The speech is digitized
at a sampling rate of between 10 and 20 Hz., as opposed to the 44.1 kHz. sampling rate
used in CD-audio. Digitizing speech at these sampling frequencies keeps intact the
properties of the speech signal that are important for automatic speech recognition while
minimizing storage requirements. These corpora typically consist of thousands of spoken
phrases or sentences which are stored in separate files for ease of computer manipulation.
In the mid 1980's, the NIST began an archivalnending library for public domain speech
corpora. The corpora were originally maintained and distributed on half-inch reel-to-reel
digital magnetic computer tapes. Initially, these corpora were small, but as recognition
systems became more sophisticated, their appetite for "training" data grew tremendously.
By the end of the decade these corpora were each occupying 50 o r more 6250 bpi. halE-inch
magnetic tapes and even larger databases were on the horizon. Managing these colossal
databases of speech had become a real problem. Simply storing, copying, and distributing
the corpora had become unwieldy. Furthermore, maintaining the integrity of the corpora
was even more difficult as tapes were frequently damaged in shipment o r by rogue tape
drives.
NIST and CD-ROM

By early 1988, the NIST Automated Speech Recognition Group had begun investigating
optical disk storage technologies as a means of replacing its tape archives. Initially, WriteOnce Read-Many (WORM) technology was considered for use as a universal distribution
medium but was found to lack adequate standardization. Fortunately, in the Spring of 1988,
DIIAFT - NOT FOR PUBLICATION
the SO-9660 file format standard for CD-ROM was adopted and CD-ROM was chosen by
NIST as a new "experimental" medium for distributing speech corpora.
NIST decided that the first corpus to be produced on CD-ROM would be the DARPA
' T I M I T Acoustic-Phonetic Continuous Speech Corpus. Under DARPA sponsorship, TIMIT
was jointly designed, recorded, transcribed, and archived by Texas Instruments IT11 , the
Massachusetts Institute of Technology (MIT), SRI International, and the National Bureau
co~puswas designed to provide speech data for the
acquisition of acoustic-phonetic knowledge and for the development and evaluation of
automatic speech recognition systems. The corpus contains recordings of 630 speakers from
8 major dialect divisions of American English each speaking 10 phonetically-rich sentences.
In addition to standard orthographic (text) transcriptions, TIMIT contains unique timealigned phonetic transcriptions. NIST felt that TIMIT's unique structure would b e of great
interest to speech researchers and, therefore, would probably be ideal for widespread
..
on a "prototype"
publication on CD-ROM. NIST decided to publish two-thirds of the corpus
CD-ROM.
8 (-1.L.
)
,5?
Because of the ISO-9660 restrictions on filename length and format, the chosen two-thirds
of the corpus to be placed on CD-ROM was restructured from a flat directory structure with
lengthy unique UNIX filenames into a dense 5-level directory hierarchy which reflected the
design of the corpus and conformed to ISO-9660. The resulting directory structure
contained 4200 bottom-level subdirectories -- one for each sentence-utterance, and 3 files
per utterance for a total of 12,600 data files! This new organization required the use of the
entire path and filename to uniquely identify a file but was 'Gisually navigable."
T o date, more than 200 "TIMIT Prototype" discs have been distributkd to universities and
speech research laboratories worldwide. The discs were well received by the speech
research community and have been read on PC's, Macintoshes4, various UNIX systems,
NeXT5 machines and ~ i c r o ~ ~ The
~ e"experiment"
s ~ .
had proved to b e successful.
As of this writing, NIST has produced four releases of speech corpora on eight discs.
Recently, NIST completed production of its most ambitious speech disc so far. The new disc
is a complete revision of the TIMIT Prototype disc and contains the speech for the complete
630-speaker corpus as well as all-new time aligned word-boundary transcriptions. The new
TIMIT CD-ROM contains 25,200 data files (4 files per utterance) as well as morcextensive
documentation and software utilities.
After the production of the TIMIT prototype disc, NIST recognized the need to distribute
Macintosh is a trademark of Apple Computer, inc
'NeXT is a trademark of NeXT, Inc.

*MicroVAX is a trademark of the Digital Equipment Corporation (DEC).
DRAFT
NOT FOR PUBLICATION
speech corpora in a consistent format. Unfortunately, no standard file format existed f c l '
storing and exchanging speech signals. Compounding this problem, almost every speecl:
research laboratory around the world used different hardware and software configurations
for speech signal processing and analysis.
A UNIX-Based CD-ROM Preparation Workstation

In order to implement a full scale CD-ROM production effort, the Automated Speech
Recognition Group built a UNIX-based CD-ROM publishing workstation, which alsi:
doubles as a general-purpose speech research system. CD-ROM images are prepared 01:
a Sun Microsystems server system with 32 megabytes of main memoy, 3 gigabytes of high
speed magnetic disc storage, a 9-track tape drive, an 8mm tape drive, and of course a CDROM drive. The workstation contains two 1.2 gigabyte magnetic disc drives on which entire
CD-ROM images can be assembled and simulated.
Each CD-ROM is now organized entirely in the UNIX environment. Many of the standard
UNIX utilities and capabilities have proven ideal tools for CD-ROM preparation. Tar files
are now submitted for CD-ROM replication on one 8mm tape, instead of 5 or 6 half-inch
reel-to-reel tapes. UNIX-based CD-ROM premastering software is planned to be added in
the near future to help alleviate some of the complications NIST has experienced in
submitting data for replication. By performing ISO-9660 formatting in house, an ISO-9660
image can be submitted to the replication facility. The ISO-9660 image can then be directly
loaded into a mastering system - thus circumventing the problems which can occur
downloading tar-formatted files.
NIST has developed strategies to maximize the portability of its CD-ROMs by organizing
speech data into a consistent format and providing utilities which can be linked into each
laboratory's unique hardware and software systems. To accomplish this, a flexible, objectoriented header structure was developed for the exchange of speech files, especially on CDROM. The header is an ASCII-based structure prepended to each speech file and allows
an utterance to be uniquely identified (even if the file is copied from CD-ROM and
inadvertently renamed) and describes basic attributes of the speech signal to aid in digital
to analog operations. A set of software utilities have been written, "Speech Header
Resources" (SPHERE), to provide a low-level interface for importing and manipulating these
files. NIST now publishes aU speech data in this more consistent format.
A Data Submission Problem

All of the key components for efficient CD-ROM production were in place at NIST, except
for a vehicle for data submission. When NIST initially delved into the world of CD-ROM
production, it was dismayed to learn that most CD-ROM replication facilities accepted only
standard ANSI-labeled or ISO-9660 imaged tapes as transfer media. The small Automated

Speech Recognition Group could not justify the expense of purchasing a special-purpose
premastering workstation dedicated to creating ISO-9660 tapes. Neither could NIST provide
standard ANSI-labelled tapes because the simple structure of ANSl-formatted files would
not preserve the extensive directory structure required by the many files typically contained
in speech corpora.
The UNIX tar Answer?

The tar-formatted tape is the standard medium of data exchange in the UNIX world and
NIST had been successfully distributing speech corpora on "tar tapes" for several years.
The UNIX tar (Tape Archive) utility was designed to create a portable archive format for
UNIX files. The tar program generates a single file (usually on magnetic tape) which
contains all of the information necessary for reconstituting directories, files, and UNIXspecific file parameters. What distinguishes the tar utility from most other archive programs
is that the archive format it creates is portable across machines and operating systems. The
key to the tar format's portability is in its simplicity. Tar does not employ any elaborate
compression algorithms when generating an archive. It simply creates a byte-for-byte copy
of each file to b e archived with a prepended header block. The header block contains the
path and name of the file (or directory), the file size, the time of last modification, and
UNM ownership and permission flags.7
Because the information in the each header block as well as the file itself is byte-encoded,
the tar file can be read by any system which can recognize a stream of bytes. Of course,
binary executable files are system-specific and cannot usually be implemented on differing
systems. But text, source code, and binary data files can be easily exchanged.
TOdate, the tar program has been ported to many operating systems, including MS-DOS
and VMS' as well as the many variants of UNIX.
Because the tar format is portable and preselves directory hierarchy, and because a tar file
can be written to a standard ANSI-labelled tape or any other storage medium, NIST
concluded that tar-formatted ANSI tapes would be the ideal vehicle for providing a CDROM-ready file image to a replication plant.
Unfortunately, NIST has found that most replication plants either refuse to accept tarformatted files or they charge considerable "data conversion" fees to download the files into
their premastering systems. To say the least, the acceptance of tar as-an input medium for
CD-ROM production has been less than universal by the CD-ROM replication industry.
-
'Sun Microsystems, Inc, TAR(5)". Unu Interface Reference Manual (Relense 3.0). Section 5 -FileFomtars,
pp. 429-430.. January 1983.
'VMS is a trademark of the Digital Equipment Corporation (DEC).
DRAFT
1907' F O R P U B L I C A T I O N
The replication facilities that have ventured into the "tar pit" with NIST have frequently
encountered technical delays and cost-overruns. In theory, the tar-tape to CD-ROM process
should be simple. But in reality, it has rarely been straightforward to implement.
Pitfalls in Exbracting a CD-ROM Image from a UNDC tar File

The challenges encountered in producing a CD-ROM from a 630-megabyte tar tape, which
contains over 25,000 files, can at first seem insurmountable . Several problems have
occurred during production, some of which are still not completely resolved. Downloading
and extracting a CD-ROM image from a tar file can be excruciatingly slow, taking 15 or
more machine hours of time for a single disc image. If a tar file is packed with thousands
of files, unforseen complications can arise in the extraction process, and diagnosing and
troubleshooting all of the subsystems involved can become painful for even the most
experienced of engineers and technicians.
a c'!
L...
>
I
Extracting the file structure from a tar file for a CD-ROM such as the new TIMIT disc
requires a great deal of time and attention because of the extraordinary number of
directories and files. The subsystems involved in the tar extraction process require seamless
integration. These include the PC hardware platform and MS-DOS operating system, the
premastering system, the device drivers, controller cards, tape back-up systems, and the tar
utility. Limitations inherent in the MS-DOS operating system, device drivers, and file
structures can result in breakdowns in any one of these subsystems resulting in the loss of
hours of man and machine time in the production process.
Eight-mm tape subsystems can be especially vulnerable when extracting exceedingly large
numbers of files. This is because 8mm tape drives are mechanically suited for streaming
operations. They are not as accommodating as 9-track tape drives in the quick stopping and
starting movements which become necessary when extracting many thousands of small files.
Additional loss of efficiency occurs when 8mm drives must interface with a system which has
become bogged-down with overloaded magnetic disk sub-systems. The only way to optimize
their operation is to load and buffer large blocks of raw data before it is tar-extracted.
Subtle problems may also arise when the controller cards of some 8mm tape systems are not
entirely compatible with the publishing system being used. These and other unforseen
problems can cause a tape drive to abort operations well before completion of the extraction
process.
Worse yet, because the tar format does not guarantee that directories and files are stored
in any particular order, an entire tar file must be scanned to extract any subset of files
contained in it. If the tar-extraction process aborts before the end of the tar file is reached,
the entire process must be restarted from the beginning to insure that all files are loaded.
These constraints require that special efforts be taken to prepare backup tapes and even
second backup tapes during production. This is one area of risk where the insurance is well

worth the effort, and is within one's control. Many of the other pitfalls are not as easy to
anticipate or avoid.
One of the more frustrating problems encountered while downloading the TIMIT tar file was
that of the overhead created while extracting the 18,900 small transcription files. To
illustrate this point, during the downloading of the 632-megabyte tar file, containing the
25,241 TIMIT files, the process aborted on 650-, 850-, and 1200-megabyte partitions due to
insufficient disc space!
On UNIX systems, the size of file blocks (similar to the ISO-9660 and DOS sector
structures) can be modified. Although the ISO-9660 standard supports different sector sizes,
the individual operating systems used in the premastering process may present problems.
For example, MS-DOS 3.31 does not allow any modifications to sector size. Fortunately,
MS-DOS 4.0 is more forgiving.
The TIMIT tar file contained 18,900 transcription files of under 2Kb each. A premastering
system running DOS 3.31 with a 16Kb sector size would require over 300 megabytes of disk
storage for these files which actually amount to less than 32 megabytes of data. This results
in disk overhead of 1 order of magnitude!
-\
I
However, by switching to DOS 4.0, the sector size can be reduced to as little as 512 bytes.
This significantly reduces the overhead being used by the DOS partition. It is therefore
important to adjust the sector size to accommodate the size of the database files to be
downloaded. T o maximize disk usage, the sector size should be set high when premastering
a database with a few large textual files. But when a database (such as TIMIT) contains
many small files, the sector size should b e greatly reduced. Likewise, it is also important to
allow for this kind of overhead on the CD-ROM itself. Although CD-ROMs are generally
created with a 2Kb sector size, the sector size can be reduced on the ISO-9660 image in the
premastering phase to as little as 512 bytes. By decreasing the sector size on the TIMIT
ISO-9660 image to 512 bytes, potential disc overhead was reduced by about 32 megabytes.
Finally, a hidden source of potential problems lies within the implementation of the utility
used to extract the tar file. There are currently a number of tar utilities that have been
written and are in use today. Many of these utilities are suboptimal in speed and efficiency.
The time required for downloading a tar file can become critical when extracting large
numbers of files. Therefore, using the right tar implementation is a must.
The Real 'Tar Pit" - Universal Operability

The real problem facing the CD-ROM industry concerning the production of non-DOSbased discs lies not in which utilities or platforms to use, but within the deeper abyss of
universal operability.

Universal operability encompasses the common methodology of transferring, publishing, and
retrieving many different types of data across different platforms, while using different
hardware and software systems?
Attempting to extract a tar file into a DOS-based premastering system is a perfect example
of why universal operability is the next technical challenge for the CD-ROM industry at
large. If this issue is continued to be ignored, entire market segments will be left paralyzed
because of the inability to publish information from beginning to end without experiencing
compatibility problems. This bleak scenario could result in the CD-ROM industry losing the
acceptance and respect it has worked hard to gain.
The Challenge Ahead

This article has illustrated some of the potential problems which can result when using the
UNIX tar format as a data submission medium for CD-ROM replication. More importantly,
it has shown that a much greater variety of CD-ROM applications could blossom if the CDROM industry embraces a diversification of CD-ROM platforms.
-\
'
The ISO-9660 standard has provided a good basis for the exchange of CD-ROMs across
different hardware and software platforms. It is now time for the CD-ROM industry to
address and overcome the many obstacles faced by the challenge of universal operability.
The increasing need for a standard media- and platform-independent format for data
submission is just one such obstacle?'
In the short term, manufacturers of CD-ROM premastering workstations should publish
specifications indicating the limitations of their systems. This would allow publishers and
replicators of "atypical" CD-ROMs to avoid many of unforseen pitfalls they must now face.
In the long term, these premastering systems must be made more robust.
The next generation of CD-ROM publishers and users will help CD-ROM technology reach
new heights, but they will become far less forgiving as CD-ROM becomes more
commonplace. For NIST, the UNIX road to CD-ROMhas certainly been "the road less
travelled." Currently, the development, production, and use of CD-ROM technology in
UNIX and other environments is still in its infancy. However, by increasing support for
development and production in these environments, CD-ROMs may someday be produced
and used on a variety of platforms as easily as they are on MS-DOS-based systems today.
It is only in this way that the CD-ROM will become the truly universal medium of data
%own. T.. "Universal Operability: The Technical Challenge'. Dirc Magazine, pp. 30-34, October 1990.
'%elgerson, L W., "Universal Operability: The Technical Solution: Dirc Magazine, pp. 36-39, October
1990.
D R A F T - NOT FOR PUBLICATION

exchange that it was intended to be.
Acknowledgments
The authors wish to thank the following people which have helped them in their quest for
solutions to the problems this article has outlined: Joe Bradley and Clayton Summers at
Philips and Dupont Optical Co., Dennis Clark, formerly of Meridian Data, Inc., Leon
Whidbee and Gisele Venczel at Disc Manufacturing, Inc., Lance Buder and Sylvester Pefek
at Optical Media International, and Tom Brown at Reflective Software.
DEFENSE MAPPING AQEMCY
'
8011 L C I l t Z m Y A I
fF4RFM. VRaIW ePml.21Sf
14 NOV EN
AQAF-S
American Belix Technology Corp

ATTN:
Mr. S t a n Caterbone
1857 C o l o n i a l V i l l a g e Lane
t a n c a s t e r , PA 1 7 6 0 1
Dear Mr. Caterbone
T h i s l e t t e r i a t o i n f o r m you t h a t t h e Defense Mapping Agency
Aerospace Center (DMAAC) h a s concluded i t s e v a l u a t i o n of your
A t t h i s t i m e we w i s h t o
p r o p o s a l under R F P DMA700-90-R0011.
inform Y O U of t h e f o l l o w i n g t e c h n i c a l , management o r q u a l i t y
c o n c e r n s , and g i v e you a n o p p o r t u n i t y t o p r o v i d e a n y
i n f o r m a t i o n t h a t c o u l d b e n e f i t your company a s i t r e l a t e s t o
LL---
--..*----.
F i r s t , your sample C D - R O M ~ A ~ It h r e e ( 3 ) sample CD-ROMS

p a s s e d most of t h e P h i l i p s / S o n y s p e c i f i c a t i o n s a n d a l l of t h e
RFP s p e c i f i c a t i o n a w i t h t h e e x c e p t i o n t h a t two ( 2 ) d i s c s
e x c e e d e d t h e maximum i n f n r m a t i a n d i a m e t e r l M T D I a n d a l l t h r e e
( 3 ) d i s c s exceeded t h e t r a c k p i t c h (TRP) s t a t i c d a t a
specif icatione.
Second, Span of C o n t r o l - Span of c o n t r o l g i v e s u s a c o n c e r n

because we d i d n o t s e e t h e c a p a b i l i t y t o c o n t r o l l a r g e
orders, t h i s concern becomes more substantial when you
c o n s i d e r the f a c t t h a t you w i l l be s u b c o n t r a c t i n q
p r e w s t e r i n g / m a s t e r i n g and p r i n t i n g / f f n i s h i n g of t h e artwork.
The p r o p o s a l i d e n t i f i e d 100 s f t of
T h i r d , s t o r a g e of GPP
s t o r a g e s p a c e , t h i s is n o t s u f f i c i e n t t o s t o r e magnet c t a p e s
f o r l a r g e o r d e r s ( o v e r 200 t i t l e s ) .
Request t h a t any i n f o r m a t i o n p r o v i d e d i n r e s p o n s e t o t h i s
1 c C t c r be oont t o the following a d d r o o o and m a i l e d to a x r i v e
n o t l a t e r t h a n 1600 ( 4 P.M.
1990.
C e n t r h l ) on Wednesday, 2 1 Nov

William M. Nelson
3200 South Second S t r e e t
S t . L o u ~ B , MO 63118-3399
ATTN: AQAP-S/Mr.
Hand c a r r i e d responses musk be sent to the following a d d r e s s

hv
Chn
+<ma -p-nICJ-1
-L-u-.
Defen6e sapping Agency

ATTN: AQAF-E/tir. william M. Nelson
8 9 0 0 South BrOadWdy
St. Loui8, Mo 63125-1315
Any question8 may be a d d r e s s e d t o Capt Wright or t h e underfitanat7 at
t l l A \
9+7-Qzn?
Sincerely,
Contracting Officer
Compact Disc Pmject Managers.

Compact Disc Manufacturers.
'
. .
i... .
,. .
.. ,.
.:
? .
November 20, 1990

ATTN: AQAF-S/Mr. William M. Nelson
3200 South Second Street
St. Louis, MO 63118-3399
Dear Mr. Nelson:
In accordance with proposal DMA70G9GR0011, the following
information is intended to address the specific concerns that
the Defense Mapping Agency has cited with regards to
technical, management, and quality deficiencies found in our
original RFP.
1.
"Firs4yoursample CD-ROMs - all three (3) snmple CD-ROMs

parred mosf of the Phillips/Sony specimtions and all of the
RFPspecijc&ons with the exception that two (2) &a exceeded

the mmimum information diameter (MTD) and all three (3)
discs exceeded the hnckpitch (TRP)static data specifi&.ons."
Response Due to the fact that certain customers,

including the federal government, request excessive
data capacities that exceed the Yellow book standards,
we will produce a disc that exceeds the limit. However,
we will require that the customer be at risk for certain
performance characteristics common under these
specifications.
In producing a disc that will exceed the Yellow book
specifications, the track pitch (TRP) must compensate
for the excess data that must be stored on the disc. In
some cases, certain drives may have problems with
such discs. The track pitch is a parameter that is
adjusted at the time of mastering in order to
compensate for the extra data. This will inturn result in
a track pitch below 1.55um.
Unfortunately, in today's market we would loose a
majority of our business if we required that discs adhere
t o data limits.
Enclosed is a disc that is well within the data
specifications of the Yellow Book standards.
2.
"Second, Span of Control - Span of control gives us a concern

because we did not see the capability to control large orders,
this concerns becomes more substantiated when you consider
the fact that you will be subcontracting the
premartering/mtering and printing/*irhing of the artwonk"
Response The compact disc manufacturing process Is

contingent upon an order as being a title. A large order
is one whereby a title requires a large number of discs.
Only when an order requires large number of
replications do you benefit from economies of scale and
optimal production performance.
The DMA700-90-0011 contract is just the opposite. It is
a large number of titles or orders (1,000) with only 400
reproductions. All individual orders contracted by one
customer requires the same attention and efforts as by
all individual orders. All comoonents such as ~rintina.
mastering, and inserts must all be treated as ieparare
individual orders requiring 400 replications.
American Helix has built its business around small
"niche"customers for the audio market, thus being more
accommodating for the CD-ROM market. The American
strategies specifically
Helix business and produdion
address the issues pertaining to a large number of titles
requiring smaller disc replications.
American Helix already experiences one of the lowest,
if not the lowest, ratios of individual titles per machlne
hour. This also has resulted in developing efficiency
when turning many orders per day, as opposed to
producing one individual order that takes days of
machine time.
In response to the subcontractingl issues, yes we do
subcontract the mastering. We may or may not
subcontract the premastering. However, it has been
proven that we have been able to optimize our business
without experiencing any delays or lateness that is not
considered normal In the industry.
As for the printing and finlshing of art work, I must

challenge your suggestion that this Is a deficiency.
Thereare not any domestic compact disc manufacturers
that prints inserts or tray cards on site. Again, Iwould
site the fact that we have extensive experience In
producing large numbers orders requiring small runs,
which have allowed us to optimize logistics and
operations of such.
In conclusion, we do not conslder the DMA700-90.0011
a "large order". We conslder it 1,000 small orders.
3.
Thw
the stomge of GFP - The proposal identified 100 sq. fr.

of stomge space, thk k not sumient to store magnetic tapes for
large orders (over 200) fifles."
Response In the original proposal Ihad Identified 100

sq. feet of floor space, not cubic feet. We currently
store over 1,000 1630-Umatic tapes for different titles.
I suspect that you will deliver your data in 8mm tapes,
of which the current storage space will be sufficient. If
you deliver %track tapes, we will accommodate your
requirements in our new storage facility. We have
recently broke through our walls, acquiring more than
5,000 sq. feet of additional space.
We hope that this Information Is useful In helplng you
understand our capabilities and the preceding issues.
Sincerely,
Stan J. Caterbone
Director, CD-ROM Technologies
ENCLOSURE
Compact Disc Pmjccl Marragcrs.

Compact Disc Manu(ncturers.
December 6, 1990
Honorable Robert S. Walker
Dear Mr. Walker:
Enclosed you will f i d copies of my latest correspondence and
procurement proceedings for the above mentioned contract.
As you can see, I was requested to submit information regarding the
specific technical, management, and or quality deficiencies contained

in the letter from W i a m M. Nelson, Contracting Officer, on
November 14, 1990.
Before submitting my response, I had called Mr. William M. Nelson
on the 19th or 20th of November asking when I would receive the
pricing schedules of the other offerors, as promised in his letter of
October 29th, 1990 which states "shortly before the negotiations are
reopened, the DMAAC will provide each offeror who elects to
participate, in accordance with the p i w e d u r n set forth below, the
most recent-unit prices offered by all participating competitors. The
DMAAC will then reopen negotiations with all participating
competitors."
I have yet to receive the pricing information as promised, and I am

becoming very suspicious of their conduct.
Any information regarding the above, will be greatly appreciated.
Regards,
Stan J. Caterbone
Director of CD-ROM Technologies
P.S. It has come time for me to reveal the truth about the summer
of '87. Unfortunately, this will involve many of you constituents, in
fact you may want to inquire to Mrs. Walker regarding our telephone
conversation in July of 1987. I mean no harm, and appreciate your
integrity and support.
\rnrr<an Helix Te~hnulc~gyCorponlr~n
IS57 Colonial \ ~ i l Lane
~g
Llncrrlrr Yunlts!itanm 1'601

-I: 391 -810
-1- 392 -89- F\S
Boil j!j 6 5 7
A-8
FROM PAGE ONE
MONDAY,JANUARY 14,1991
ISC: Close ties to South Afhca probe

Continued from A-I
said one federal source. "But to

say they were a U.S. arm of Barlow Rand would be rlght on target, so to speak."
here and there within the com- Robert Shirema]

puter, parts that will be removed South African
once the stuff gets to South Afri- LearnTech Pty.
executive. "But there were milmainland and a I
ca.
lions and millions of dollars in
missile systems, like technology,
Called dual-use technology, the ny. EduTech, on
SPY systems and mobile military
For companies such ase ISC bomblvideo game swing in appli- off the South Afric
to take the cation capabilities of much of
"Jersey Island
command and communications which were
electronics systems has ma of South Ail
bases sent to South Africa in re- risk of violating the
~
~ these
~
r
t
source.
"It's
cent years via Lancaster, much control ~,.t and unit& ~
~ thrown
~ customs
i agents
~ and fed~
~
. a
more than just the stuff sent embargoes that have existed era1 licensing agencies into a tur- haven known fo:
moil in their attempt to prohibit front companies
through Terry Faulds and (ISC) since 1964 against the white
Technologies Inc."
theirexportfor
illegal uses.
and hide financia
supremacist regime' thepfofits
LearnTech, ac
"I don't think there's any cussources
were astronomical and, iniW!y,
tom, agent, or any federal agent eral sourceS, was
that ISC
Inc., the risks bureaucratically mm- for that matkr, who can look in- ISC and a Barlo,
Faulds and other executives imized,
to federal
within ISC's Lancaster-based In- sources,
side a computer and say, ary within a subr
'Whoops, that part doesn't belong Limited's electrc
..The fact that much of this
ternational Group-once headed
by Ivy and which included Ed
stuff micropmesthere,' " saidone agent.
tech.
isolators
the like
Another ISC source said he
EduTech woul
Systems and Technologies I ~ c-. ,,
were the key distribution areas could be
for peaca
appli- even doubted if many of the com- being used frequf
within ISC's U.S. operations for cations as well as war, made the puters themselves ever saw the conduit to direct
Barlow Rand.
licensing almost a snap,v inside of a classroom, saying payments to h
"Tosay ISC wasowned100per- said one agent.
if yousre what happened to the systems African princips
cent by Barlow Rand might bE shipping personal computers once they arrived in South Africa $1.6 million in
ferred to as the I
"anyone'sguess."
somewhat of an overstatement,
who.s to know if a part is added was
But one common thread ran tion - from IS(
through everyone's assessment African son-in-1;
of South Africa's intent - pro- an, for establisl
cure, procure, procure.
investment firr
"As the (worldwide) arms race name.
In recent cl
escalated, it became essential
for South Africa to obtain U.S. Shireman was r
technology to advance the devel- counting mastel
opment of both their convention- ed the phony f
and nuclear weapons pro- federal proseca
grams," said one federal source. were used by GI
Insured .gain# dl rUk
unlfnmed. courteocu Pwsond
"We know this has been an active conduct a mass
We won't smoke In your home- or otRW
mission by the (South African) Ferranti - a f r
We solve Pa Odor Problems
government as far back as the ed at $1 billion.
we can stop Statlc ElecMcIIy
mid-1970s, but as been stepped up time British del
Carpel Protector avallabb
1987 merger wi
considerably since, say, 1985."
that
nearly thr
RY'S CARPET CLEANING
In concert with the establishFerranti has
ment of ISC Ed Systems, Ivy and
~ o p ~ r i ~Bn~t~. ~ . c N N ~ w1982
P . . U.S. Pamnl Nor. 1.1%.5186 4,zrr
former top ISC finance director, rin, Faulds and
EXPERT CARPET, FURNITURE & DRAPERYCIHMN
I Guerin vs. Clark 'blackmail' tapes revealec

; $2.7 million paid to destroy harmful data?
-
4EuStScMeiber
T ."d,rn
Mekeel
I New 618 S1a" Wl#lers
e
r
Ferrantl tnternacmnnl ,oftl.

e l r l r made public Wcdncsclrv
IIBMCI~PU
01 taped cunrr.rs8d
Lions that they say hely prove
t
that former rnrp,rr.l,c rt,<>mry
li Willism A Clark wnr black^
il mailmg executive Jamcs H
'I
Cuennlorl2.7Smilli"n
I
F e r r a n l i attorneys liled the

trsnseriptS i n p r ~ p a r a t i " " lor r
court hearing Friday l o consid.
~r the r o m p m y ' s r l n l n l that $2
milliOnof a l l r g d hush monryseized b y the govcrnmcnt beforeitcould bc paid-should be
relvmedtothecompany
:I
he lrling appears to bc part
r
3
Williarncbr*
Allegedinblachmail
JlrdscEdward N Cahnol All<,>

town that C i r i k has no vaild
c l a m tothe money
An rtlorney l o r Clark dzo l s s l r a l e g y loconv~ncelcddrdl
It 1141hYear-No.35,653
Guerin: 'distorted' TV report causing pai

other fornlur ISC rxrrll
are r.ceir,,,i: Lllrealcnln,
harasr#ne phnnc r r l l s 11,
l e C t l ~1" 21112111 l n a C C l l r l
James H Gvurln today of^
p"r,ine '
1 , ~ " df r r s h cvidenrclha, h l s l n ~
~ucrln
s;ud (hat t l i r trcl
tcrnational Stgnal& Control d ~ d
not illegally sail the kmlw-how
gy lor thc Alnerlciln r
bomb, known o r t h r Rnrkc
for building the r l u s l c r bombs
freely a v a l i r b l s waridu,$d,
that have ended up in Saddam
Guerln noted that the Ca
Husiein'sanenal.
and I r a q i r r r s i o n s arc sul
c u e r i n was reacting ta a re,,ally d!flcnnt --and l n f r l
w r l F r l d a y b y ABCnewamagatothe Hockeye.
alneZOI20, r h l c h r a i d federalxn'(The Rocklye war d"l
uestigatnm believe ISC illegally
over 30 years ago. i t s c
sold cluster-bomb plans to Carpackage is prshahiy in
10s Cardoen, a Chilean arms
C",un,rr of tho world ,ha,
draler.
JamesGuerln
n.,,s.?dtiuChn
Cardoen t h e n m a d e the
lSCexecut#ve
Cucrin a r i d he I k r m r d I
bombs and sold them Lo I r a q .
N a l y eaptaln in 19i'Jor 191
said M i M . Those weapons now
Hugh Downs, said theshow has the~oekeyerpclfirrcl,,n
pose a deadly threat to U S . caused hxs famdy "unwarrsnt- ,.auailablc to
,ne
trmns
i n l h r Persian Calf
edhadrhin
~~~~,~
Cuenn,inaletkrta2olzahost
"MY w;ie and I,as well as
MoreGUERINc
z:?:2?A,ler
METROPOLITAN
ciuer,,1 sags he dcrpeialely

w;~ntrdto know thosc packages
ha"% beel, deitroyed, so he can
y* ao,1Inlph,'r SIC""
~~
~~~~
[.ANCASTER, P A , THURSDAY, FEBRUARY 7.1991
M
s?m.-.
~
Prl
PEB /--
LANCASTER, PA., NEW ERA
7/ / F ? /
'Blackmail'
Continuedfrom A-1
In the acquisition, Ferranti
~-~ used
"The one thing I will look for savs. "Guerin and others
you to do, Bill, after we close this faise' contracts to overstate the
out, is ...(that) you look me in the value of ISC by at least $350 mileye and you say, I've destroyed lion, and Fcrranti officials relied
those packages," Guer~nsays. on those material misrepresentaClark assures his boss that after tions in agreeing to (a) stock
he gets his last payment, he will swap."
"take a trip, and I don't mean a
Ferranti says it is entitled to
vacation trip.
get the money back because it
"And when I get back from that was "illegally obtained propertrip, I will tell you that I have ty" that Guerin had no right to
been to certain places, and I have give toClark.
recovered the packages that are
The court testimony of an IRS j
there, and I have destroyed agent last May shows that $1.3
million of the funds were direct
them," Clarksays.
"I will take a book of matches results of the ISC swindle, Ferand they will be done away ranti says.
Another $700,000, it says, was
with," hesays.
Guerin testified here in Janu- illegally diverted from an ISC :
i
ary 1990 that Clark had attempt- subsidiary.
ed to extort $2.75 million from
Clark is not entitled to the
him, using 11 packages of al- funds, the company says, belegedly damaging information cause he knew the money was
tainted and used that knowledge,
about Guerin and his associates.
to force payments from Guerin.
The
packages
alleged
financial
"What Clark had in mind was
wrongdoing, illegal sale of arms
to South Africa, conflicts of inter- blackmail, not settlement of real i
est and cheating on government or imagined grievances about his
contracts, Guerin said.
employment," Ferranti charges
Clark's demand for money in its filing.
came during delicate financial
negotiations when Guerin was attempting to buy back a portion of
Ferranti.
Guerin believed the packages
particularly those alleging
Guerin had inflated its financial
worth would have scuttled the
buyback.
Clark suggested masking the
payments as a severance agreement in which he left the company due to health problems and
promised not to "bad mouth" the
company. Guerin agreed.
In Anril and Mav of 1989. while
the buiback negoiiations were in
progress, Guerin p a ~ dClark $1
million, according t o court documents.
But after the negotiations collapsed, Guerin stopped further
payment. Clark sued for the r e
mainder. and Guerin set it aside
in- a- hankescrow
- ---- - ...- - account
-.
..-- -.
In Wednesday's filing, however, Ferranti, which in 1987 had
acauired Guerin's International
~ i d n a l & control cornoanies.
~~~.
claims that -ieitht.r Guerin nor
t the money.
Clarkhad any r ~ g hto
Since autumn 1989, the companv has claimed that Guerin and
ISC management vict~mizedit in
what its attorneys now call "a
truly stupendous conspiracy"
~
~.
~~
~~
Lancaster
__
Aviation files for ban
.
I
I Alan Walsh
ii InteUQencw Journal Stan
Lancaster Aviation Inc., the largest of Lan-
t caster Airport's three fixed-base operators,
:I filed
for protection from creditors Friday

I under Chaoter 11 of the Federal Bankruotcy
.- - -.
...- - - - : Charles H. Smith, the president of the com1 oanv. said Fridav that the comDanv is suffering from the effects of an "unprecedented and
s extended downturn in sales, which began
t without warning in August."
I The major factor leading to the decision is
: not a profit and loss problem, but a cash flow
I! crisis: hesaid.
"The oroblem is that. . . exoenses for reJ pay &&[ of debt principal, taxes, capital
.I imorovements, and the like, have combinedto
i keen us in a negative cash flow -wsition over
E the'pait few ye&.," Smithsaid
Strapped for cashand innecdof financingto
I
I get the comoany throueh "this very serious
crisis." Lancaster Aviation will have four

months to restructure under Chapter 11 and
prove it can recover.
However, efforts to refinance and inject
new capital into the company have been
unsuccessful.
also unlikelv that the corn--..It
- is
~.
any will be able to secure a short-term bank
roan during its bankruptcy term.
In additlon. Smith said it will "probably be
imwssible" for the firm to o b t h credit aurinithe restructuringeffort. Asa resul1,Smith
s a ~ dbusiness must be conducted on a cash basis.
Under those circumstances, Lancaster Aviation will be on its own to eenerate enough
- --.
..-- - -- . - - .
The Lancaster firm manages an avionics
(airolane electronics) shop. maintenance
s h o ~used
.
airolane dealerslib. flight school.
charier service, and Exxon fuel dealership at
the airport. It employs 4 1 full time and seven
part-time workers.
After recording sales early in 1990 that
matched the firm s business plan for the year,
~~~
PA
business droooed 35 Dercent in Ar

tember, and Octoher,'usuall?; the fi
activemonths.
August sales dro~oedto %280.00(
cally'below the nominal level for t
Salesdipped to$178.000 ior 1)ecern
For the year, Lancaster Aviatio
$5millionin sales, with lossesof $11
"In the first seven months. we v
of our business plan for the year. 'l
thing just stopped, just stopped." :
who jo~nedLancaster Av~ationin
retiring from the Navy.
Poor sales in used planes an
speeded up thecash flow drought.
"Our avionics and maintenance
really our jewelry store,"Smithsa
Since 1983,sales in avionics hav
from $300,000 to $1.5 million, and
nance department has risen to $1.
sales.
More AVlh
--~
11le
;IIe
,I-
tors One group walked down Dauphin and

Duke, the other along Rockland and down
Northuntil the lines met.
Holdin hands, the hundreds of marchers
adjusted5he lines until the block was surrounded. From the middleof the play round
an exuberant Calvin Duncan, presl ent qf
DADDs, addressed the crowd using a mlMoreDADDS on A-4
that Chilean arms merchant Car10s Cardoen produced the deadly

munitions for Iraq after ISC sold
International Signal & Control him the plans illegally, ABC's
founder James H, Guerin broke a r.20120.. program claimed
day.
year and a
day to reply toan
report
But Guerin denies that ISC prolinking ISC with cluster bombs vided
Cardoen with cluster bomb
used by Iraq'sSaddamHussein.
*,,,-, By Jon Rutter
Sunday News Staff Writer
li
v,
te
M o r e WAR on A-4
parking lot of the 1.ancaster Neighborhood

1- Center on Rockland Street.
)1
Federal investigators allege
More GUERIN on A-4
t I a burning apartment building in Ephrata.
ors may get voice on who gets money

.
-~
choice.
oromam
alreadv
~ ~ a~
=- ~ . by a ma'ority of unitedway org;r s m u n the country, is seen as a
;t
make United Wav oreanizations
r esponsive to community 'mncerns
s mt contributions, whileonly mod: creasingadministrative costs.
t i g the 1990 campaign here, 13corn, I ?mploying7,125peopletesteddonor
1 These potential donors were given
., .onof designating all or part of their
b ution to the traditional United Way
e ions system; to an area of need such
? !rehabilitationor child welfare(a1I
lowine United Wav volunteers to select the

agenGesservingfhatneed);orto a specific
non-profit humanservice agency, whether
it be one of the 47 aooroved as United Way
agenciesor anotheragency .
A committee is evaluating the test model results and prepafing a recommendation for the board of directors, which meets
Feb. 28. United Way officials say further
informationwillnotbeavailableuntil then,
but it appearsdonor choice will be the committee'schoice.
United Way has already approached
non-member agencies and asked them to
sign a document titled "Donor Ootion Pro@%amParticipation Guidelines," in which

they promise not to solicit United Way
donors for designated contributions.
And Thomas Woodland, donor choice
committee chairman, has issued a
statement saying, "The United Way views
donor choice a s a way to further develop its
fund-raising capabilities so it can better
serve the interests of all donors and make
more dollars available for health and human services in Lancaster County ."
More DONOR on A-5
114th Year-
No. 35,649
METROPOLITAN
LANCASTER, PA., SATURDAY, FEBRUA
Story: deals
by ISC sent
Iraq bornbs,
but Guerin
denies sales
----Tlrn Mekeel
?em Era Stan Wrtler
- - -- -
Cluster bombs apparently are

in the arsenal of Iraq's Saddam
Hussein indirectly because of
illegal deals by International Signal & Control, the ABC program
"20120" reported Friday.
But ISC founder James H. Guerin, in a rare telephone interview, today vehemently denied
the allegations.
Federal investigators believe
ISC illegally sold plans for cluster bombs to Chilean arms merchant Carlos Cardoen, who made
the munitions and sold them to
Iraq, the show said.
Besides selline
more
------.
~
~
- than
..~
-$400
..
-.
mc~ionworth of cluster bombs to
Iraq, Cardoen also passed on the
technology so Hussein could
build his own cluster bomb facto
ry, 20120 said.
This factory near Baghdad was
t
I
~~
r
I
t
t
I
b
F
b
!
C
)
I.
I.
li
.,
noted that Iraq's cluster bombs

pose a major threat to American
t r o ~,s if ground fighting begins.
IS :was founded in Lancaster
by C l e m , who now lives in
Napli-s, Fla. Guerin has denied
selling weapons know-how to
. Cardoen, said 20120.
In an interview today, Guerin
blasted the broadcast as "totally
untrue."
~ ~ - - ~ "It's such a distortion, it's so
disturbing to us, I can't remain
silent. It's a terrible thing to do,"
hesaid.
Guerin said, "The Cardoen
"~,.~i~"~F..~l...r
. .
~
A sailor aboard the frigate USS Curts escorts a wounded Iraqi POW,
who is blindfolded and bound, past a guard on the ship Wednesday.
The Navy captured about 20 Iraqis on a mine-laying vessel in the
Persian Gulf.
DHAHRAN, Sauc
-Allied bombers t
Iraqi ground for<
into the open, and
would use every
"kitchen knives t~
mass destruction"
emies.
Two American
shot down todav. th
Command in ~ i u d
Marine Maj. Gen.
ston also said a sei
killed, perhaps b:
bringing to 12 th
Americans confirr
the Gulf War.
The planes -an.
6
were shot dou
by anti-aircraft at
ston told reDorters i
The death occ
today when a Mari
parently was hit
bombs, Johnston s:
Marines were woun
A British militar
"There's no offe
ing going on,v Ro,
G ~ O UCapt.
~
NiaU
today. "They tend t
and disperse. The p
Bush urges prayer for troo

Calls on Americans to unite in plea for their safety Si
WASIIINGTON (API - President Bush invoked
God and the memory of Abraham Lincoln today as
heasked thenation topray for lhcsafetvof Anlrri-
"and his anguishduringtheCivil War

..He turned to prayer, saying:
'I've
.
.---..
4.-. a - .-'
Is4 I
I NEWER4
BUSINES
TUESDAY,
JANUARY 29,1991
1 I990 property
:I transfers lowest
I here since '84
down 13.6 percent from the comparable 1989period.
The economv's slide into .
reces.-I
.
~ c o~u n t ~y .real
~ ~ estate
~
[ slon~ and~ incrhasing ~ i d d l eEast
iarket turned chillv in late 1990. tensions were bllamed for the real
estatemarket'sdecline.
laking the full ykargs
lance thecoolestsince 1984.
"The bieeest slowdown we've
seen
is in the higher priced ~ O W Some 11,916 property transfers
mk place in 1990, the fewest lng, from $150,000 and UP," said
lnce 1984's 10.954. according to Ronald N. Cohen, recorder of
aeeas.
.gures from the La'ncaster &nf Recorder of Deeds Office.
Cohen added that the market
'I y Tim Mekeel

iew Era Staff Writer
--~---
c
:
:$
11
!'
While property transfers were down for the

year, the number of
mortgages issued was
up 1.Opercent in 1990
to 22,920. Recorder of
Deeds officials attributed that rise to homeowners using home
equity financing to improve their existing
homes.
, :rs, and marked the fourth conI :cutive year-to-year decline.

t At the same time, many county
I# meowners were getting home
1 lulty loans on their .existin
~8 .operties.
This trend helpe8
I ~ s the
h number of mortgages
e sued slightly above the 1989
I lark.
1 The year started a s if it would
? a strong one. For the opening
&I wen months of 1990, property
r ansfers were 4.5 percent ahead
1:
1989'snare
-I While it might be exaggerating
I
say. "then the roof fell in," it's
1 ilr to say that the roof at least
- r
Mortgage money borrowed

in Lsntaster County
"
While property transfers were

down for the year. the number of
mortgages issued was up 1.0 percent in 1%9Oto22,920.
Recorder of Deeds officials
attributed that rise to homeownersusing home equity financing to
improve their existing homes.
"Even if people can't buy something new and move upward,
they'll enhance what they have
and move upward that way," said
Anne L. Kendig, chief deputy recorder.
In addition Cohen noted that
homeowners are using home equity financing to buy non-home
items, since interest paid on consumer credit is no longer tax-deductible.
"The downside is, more and
more Americans are mortgaging
themselves to a dangerous level," sylvania real estate transfer tax
Cohen said. "I think, in America collected.
today, a lot of people are living
Cohen said he was "guardedly
close to the financial edge. Some- optimistic" 1991would bringaretimes it's hard to separate needs bound in the real estate market
and wants."
here.
Despite the rise in mortgages
Interest rates are relatively
issued, the sum of mortgage mon- low and many lendersare starting
ey borrowed here fell 12.7 per- programs to help first-time buycent in 1990. Some $2.86 billion ers, Cohen noted. On topof that, he
was borrowed, down from $3.28 added, the county remains a highly attractive place to live and
billionin 1989.
The dccrcaje in property trans- work.
fers was reflected in a decline in
"I'm projecting a slight inthevalur of .Droperty
crease," he said. "Overall, we'll
.
. %Id.
The value of property sold in end upa little bit ahead (in 1991)."
While 1940 W l F 2 'In,,."
it
1990 was $845.2 million. off 1 1 9
.ro.>r
reflect the county's s k

second-fastest growing
sylvania.
For instance, thc
opened with 7,932 prop
fers. That measure in
50.2 percent higher, a t I
The value of proper
1980 was $253.3 millia
thirdof the $845.1 mil&
last year.
The number of I
issued in 1980was 8,364
egory in 1990 nearly t
174 percent, to 22,920.
And the amount of
m
n
.
.
,
.
:.
INTELLIGENCER JOURNAL
LOCALIBUSINESS
iar*casrEn.Pa.
OBITUARIES/<
SATURDAY. FEaRt
Judge delays hearing in Guerin-Clark dispute over c;

~
*nagnah-tstsn
ALLENMWN
- A federal judge
day
the rwuest
nlm
t am
l l,
si
I
lorrner
a t h e y lo
de%aheatinglodetermineilhe~enti.
tledta,methaat2milliMthathasbeen
theoblwtof
a legal bttlefwnea.ly
a
year.
William A. Clark's Washin--baed
atfaney Barnet D. SLolnik, asked US.
Dlltrict judge Edward N. Cahn lodelay
hist*timm~inthed~lmatterbee~useIndusbien Ine. was l m n by federal

there are ponsible criminal charge. pmsecutars in karch 1990 under prwiwndingagainstbim.
sionsoffederalanti-racketeeringlawr.
The m i b t e charge. stem from a
Thegouernmentclaim~Gverinwtthe
hpartment
fraud inv-tigalan
a i l e by
~ l the
ydirected
U.S. Justice
at the rne,meltepvernmentbe~ieees~~ark
earh thmu h hisongolng mimmalenterl a m e r Lanoaster delemmtractar'~ newabout.
current owner. F-anti
International
M i t a n t US. AUorney Roben E ,
PU:nandille
Caldman tald the mart Clark remains
by
~ o f ~ !a~l sa fr ~mesr~oi ef lstocr ec rh se.si tnr ae l+
u d -o! the tar ets 01 an ongoing g a n d
ing~JamesHGuerth
jury mvetiga?ion. and faces possible
The money earmarked f a Clark char esolbiachail;erimi~Immpirawhichvanbein h e l d l n ~ u e r i o ' s m u d ~ey: tecurities and Exchange Commirfund -rial Llding mmpany, Parent .ion uiolations; tax w a s l a ; and money
lavnderingfrn hisalie edroleinanmter.

nrt>onat fraud federayagents have -id
eleeeds$lb~li~o~.
Skolnlk argued that lor Clark to p r w
erly
against
protect
sell-incriminati<m,
h a ronstltutianai
he urauldgbe
n hl
~&d"tb"C~~
because the m e y wovl

by t h e p r e v i o ~ e a v r t ~
who
Shesid
la ri hlfully
that theburd,
enti"
unable to testify in thcclvrlmatterwith- r e s ~ d w i i f ~ l a r k . ~

his d w u
lnghirthaneestareeov~rUuf~nds.
wassearching for.,balar
$ h i d Clarkchto tatify.Skolnik tw.havingmreal mnce,
sad any testimony Clark did e v e might of
the funds -use
th
well beusedagainsl hirnrhouIdmim1~1 court ~ u m i ~ i in
r n
bn
?utinvokingUlisri~ht,aadpossibIy
hurt-
chargesbebrovghiatalatetedatt.
Assi~tantUS. Attorney Sania C. Jai-
I,,
M=.
\ANCASTER, PA , NEW ERA
CONTINUED FROM PAGE 1
fraud
..
That arrancement suonosedlv

~
~
\vuuld
tracing of
t the heart of \&,hat ments back to Pakistan.
Ferranti now calcuThird. Tech Ltd. sunoosedlv
lates a s a $350 million
the Pakistanicontract
loss.
officials say. is
four front companies that supposedly masked hidden backers
#(lpposedly landed by Guerin in
of the project.
1 ite 1986.
The companies - named in the
I: That deal actually did not
t uist, officials say, although it suit as Technology Associates InI: lirnicked other legitimate con- ternational, Elverton S.A., Sestri
t .acts with Pakistan that were Associated S.A, and Navarino
Develooment Coro. -were DorI ?Id by ISC.
I The boeus
.. transactions with tru! t.cl iu ..o~ileco~npansoffic~als
n e 10 the CIA and to
I ak~st;~
hlla\vcd
n
I I I . I ~ ~ , I IIn~ I ~ ;I:I ~ I. iI~I \ . ~ ties
I .v~du;tl,- nor ncccs3;rl.~l!Gue- the Barlow-Rand company, a
move designed to enhance the
; n. although hc 1; h e ~ n chclcl resecrecy.
I ,onsible< to steal an estimated
The Elverton company name
.50 million out of Tech Ltd.'s
supposedly was chosen because
e ~ f f e r stheofficialssaid.
,
, In addition. they believe. the the pronunciation of the letters;
u jgus deal inflated lnternational when spellcd backwards, sounded like "Not Reveal."
I ~gnal'svalue when it merged
The arrangement did not seem
I ith Ferranti in 1987. This inflaon led Ferranti to pay far too unusual enough to "ring alarms"
: iuch to International Signal's among ISC officials outside the
TechLtd. operation.
: :ockholders. they claim.
"It made'a lot of sense because
f Officials further say Ferranti
of the incredible ties between
i .as hit by two other losses on
company executives and South
t mtracts held by Tech Ltd.:
I
The disappearance of more Africa." said one source. "They
r Ian $100 million worth of guided have good missile technology in The Khyber Pass, located in northern Pakistan, was the I
supposed missile installation that Ferranti lnternat~onalsi
: lissiles, or missile components, South Africa, and there'd be no
: riginally produced for the Unit- licensing problems. Other pro- $250 million in losses.
grams had been set up that way."
I -i Arab Emirates in 1984, then
As a final secrecy measure, all Ferranti official agreed.
,Id toChina in 1988.
broad contacts Guerin
'I That inventory was last seen in the contract's financial work was
The end result of the suspected South African businc
r a r East warehouses in 1988. but handled internally, without over- fraud: Ferranti has written off
his aides had with
c .ace has vanished. (Ferranti of- sight by International Signal's about $250 million on the Pakista- that
African government, a
own financial staff, past and ni deal.
; cials will not say where the
Guerin associate and
present, Ferranti officials say.
r .arehouses are located.)
A
substantial
portion
of
that,
tor
says. (At one time.
Taken together, the secrecy about $100 million, is simply prof1
The failure of South African
Barlow-Rand
of South
conditions
posed
a
convoluted
r ompanies to pay an estimated
its
that
Tech
Ltd.
claimed
were.
vested
in
ISC
and (
15 million to $50 million. due in bookkeeping and high financial earned but actually were not.
buying
it
entirely
.i
riskfor
Tech
Ltd.
! 389, for electronics equipment
The
other
$150
million,
howevEstimates
on
the
v:
But such measures supposedly er, is real money forwarded by
c old toit by TechLtd.
company's
South
Ah
were
necessary
to
get
the
deal
: The 1989 transactions were the
Ltd. to the front companies. varv widelv. from as
with Pakistanand to earn the .Tech
E ltest in a business relationship
m
e
r
e that money is now located miliion a G a r to mor
:. etween South Africa and Inter- handsome 30 to 40 percent profits is not known.
million.
Tcch
it
was
willing
to
pay,
some
t ational Signal that dates to the
But whatever the I
c lid-1970s. The legality of that Ltd. offificialsargueda t the time.
n the in-depth investi- ranti
officials say, str
As
the
deal
supposedly
worked,
II
rade is now under scrutiny by a
gation that followed of electronics
to Sol
Tech Ltd. gave money to the
j .ide rangeof federal agencies.
d i s c o v e r y of t h e continued into the eal
front
companies
to
buy
missile
:I
In this particular case, Ferran"Khyber Pass" loss- of 1989.
equipment in South Africa for inI
, officials believe real eouioes. Ferranti officials
! lent truly was sold toS0111hhfii- stallation in Pakistan.
say they discovered two other
Those sales, they ad
Pakistan then supposedly paid
, J, but tney question whcthcr the
shortages in the books of Tech fictitious and did occu
hipments' American export a p for the equipment with deposits
Ltd.
on company books?alt
,roval was legitimate and prop- made in the Swiss bank account.
The first shortage involves might have been ma
Tech Ltd. got paid for its work by the unexplained disappearance legitimate U.S. govel
-P .
Ferranti's lawsuit, which con- withdrawals from the account.
of more than $100 million worth of provals. They suspet
In reality, officials now say.
ern6 only the Pakistan and
laser-guided "Hakim" missiles ters from U.S. Com
:hina deals, alleges that Guerin, the money sent to the front com- supposedly shipped to the F a r partment and State t
tobert L. Shireman, vice presi- panies was not spent on equip- East.
officials authorizing
:ent for finance at Tcch Ltd., and ment purchases for Pakistan. InTech Ltd. suppose& had ob- by ISC were not al
.mployees Lawrence L. Resch stead, some of it was returned
tained those missiles in 1984-86 were misused.
!nd Wayne K. Radcliffe "know- through the Swiss bank account for sale to the United Arab
"It seems clear nou
ngly participated in a dishonest and some is believed stolen.
Emirates.
shipments) didn't rn
Annually throughout the concheme"
needs eensing requirement
But,-because
. ... ~ . ~ ~ .
" .
.. ..
.of. changing
.
ihontinued from Page One
fA
~.~
.-...
&
~~.
- .
Will Become One of 1argest British Defense Contractors
$1.5 Billion Merger wit

MEKEEL
Signal
, -
lirouD
One
officials said the

merger will not bring any immed~atelocal impact, such as
plant expansions or rrlocations. But the hope it eventuwiu leaLl to more business for 1 s ~operating
' ~
panics.,
.
Under the terms of the
agreement, International Sig- -.
nal stockholders will own 41
percent of the combined new
company. ti stockhold.
59 Percent.
erS
"This one merger quickly
achieves most of ISC Group's
Lancaster County's largest

employers, said today it has
agreed to merge with another
English electron~csand defense com any in a combina
tion value,$at $i,%
International
based in London, said it intends to merge with Ferranti ,
pLC of Cheshire. The com- :i
bined company will he one of
the largest English defense
contractors and will be based
sz$gitcec
in London.
logical and product footings
International signal has
in certain specific areas,"
headquarters for
said James H. Guerin, execuholding company, ISC G~~~~
tive chairman of InternationInc., in Lancaster, ISC ema1 Signal.
ploys 1,702 people in LancasGuerin, of Manheim R7,
ter, out of a total 5.266 emfounded International Signal
ployees worldwide..
;
Ei7tc$V",yr
.,
fan
in 1971. ~ e ' i its

s largest stockholder. owning 10.5 percent of
its common stock. Guerin
; also will be the largest individual stockholder of the new
: combined company, owning
4.4 percent.
!
Sir Derek Alun-Jones. exi ecutive director and chief executive officer of Ferranti.
will be executive chairman of
the new company. Guerin will
be its deputy chairman.
merger agreement
: callsThe
for International Signal
stockholders to receive nine
Ferranti shares for every five
, International Signal shares.
Then
each Ferranti share will
be exchanged for one share in
;
the new combined company.

The result will be an 83 per, cent increase in International
Signal's annual dividend of
3.6 cents per share.
i
The value of outstanding
i
D S C ~204
meu 81,
PLEASE INDICATE (CHECK ONE) TYPE CORPORATION

DOMESTIC BUSINESS CORPORATION
ARTICLES OF lNCORpORAtlON
.
flln
~
nl I r o n a f s s
DOMESTIC PROFESSIONAL CORPORATION

ENTER BOARD LICENSE NO
1....
IP
o BOX NOMAER
OW C < X ) N I V
..
~ VIIIPC~
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.......
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NOT ACT-FPI~\BLEI
1755.....................
Oregon P i k e
N*:c XI.
C
7G M
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Inc.
OF R E G I S T E ~ LOrFlCE
~
IN PLNNSVLVANIA
],ancaster
FEE
N I M C O f C D R P O R A l l O N #MUST C O N T I I N A CORPORATE lNOlCAlOR U N L f 55 EXEMPT UNDER I S P S
FMG A d v i s o r y ,
. .
<!!.)

A C1 OSE CORPORATION COMPLETE BACK
DEPARTMENT OF STATE CORPORATION BUREAU
336 NORTH OFFICE BUILDING. HARRISBURG. PA 17120
-~
~ a n c a-- s .
ter(3~)
06. ZIP CODE

~
~
PA
nr rwr con
--
013 SILTE
17601
arrsm
To h a v e u n l l m l e e a p o w e r y o engage i n and t o do any l a w f u l a c t c o n c e r n i n n

a n y o r a l l l a w f u l business f o r w h i c h b u s i n e s s c o r b o r a t i o n s mav be i n c o r z
p o r a t e d u n d e r t h e B u s i n e s s C o r p o r a t i o n Law, A c t o f May 5, 1933, P.L.
364,
a s amended.
.......I l 5 l 4 F F l 4,
ibL5 Ne.nttsrr and
-- -
W6CC!.SAYII
I n . naq,esaw ~ u m b e01
i Sharer Classes o l Sharer and Par Value 01 Sharer Whach the Corporal~onSnmll
II
Class of Snares
200 , ~ O O Os_. h a r . e _ % _ c o m . m m -
041 Slalea Par Value Par

Share If Any
50.t
H.w Aulhonly 10 Issue
lnco~porator.and ~ h e
Number and Class 01 Snares S u b w r l k d l o by Each Incorporator
11v ~ a n and
, ~ Address 01 FIC~
rml W?
ObO Name
---
063 LW ~ d d n u
042 Totn1 Aulnorlzed U p l t a l
1Slresl. C l l y Stsls Ztp Coasl
031 Telm 01 E.nslence
l ~~ e -r.~
~ t_ u a l
II Number 6 CIarr 01 Shares

I
Stanley J
C a t e r b o n e . 2323 .New
...
- ..
175 16
I N T E S T I M O N Y WHEREOF. THE INCORPORATORrSt H A S [HAVE) S I G N E D A N D S E A L E D THE M T I C L E S OF I N C O R P O R A T I C

THIS
_~_..1~2th
OAY OF .......
...
........
--
...........
.
-- -- -
--
--.----- -
.....-.--..
-.
..
FOR OFFICE .-..

ilSE ONLY
-.
WXl FILED
JUN 1 9 1986
~ . .
DhTL AI'PHOVCD
..
)L,
, . ,,,,, . ~,>,.<,.,
*
"<mF "E."C'VP.*.
........
......
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GLIT
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--
0.11 W F 4 1 6 ,
1 - t2n
PLEASE INDICATE ICUECK ONE1 TYPE CORPORATION

ot*. b I#,)
ARTICLES OF INCORPORATION

A CLOSE CORPORATION COMPLETE BACK
FEE
$75 00
.'
COMMONWEALTH OF PFNNSVLVANIA
,'~PIC-P~HTUENIo
f STATE - WRPORIION
UURUU
.'
'#*INOHTU OFPICE BUILMNG. WRISBLRG. PA 17120
........
l+*UI I n 4
..,.I
DOMtSTlC PROFESSIONAL CORPORATION

E N ~ E RBOARD LICENSE NO
.........
I ( Y ( Y < W I ; T ~ O NI Y U S I CUN111MA M U P O R b l t tNIIICAIMI W I L S S i . L Y Y 1
Wealth Management S e r......

v i c e s , . I n c. .
01, I
*lllllll5.1 0 1
HI L ~ l S l t Y E I 01T1C1
I
IN
P ~ N ~ S ~ L YIPO
A Wb01
A NUYWU NO,
1755 Oregon~-P i k- .e. . . . . . .

tun
-.
.-.
.......
.-
--
UNDLR 15Pb IPI.1
....
L(-CLPT*BLEI
011 ITATE
OUCWWIV
1 - 1 1
DU ZIP CODf
17601
1-nncaster ................
L a..n c a-.s t e r PA
- 0 - 8 . r,n !,s r,raroa.rOH ?&*w,v s o f int con
RATID*
To h a v e unlimited power T o e n g a g e i n and t o d o a n y l a w f u l a c t c o n c e r n i n g
a n y o r a l l l a w f u l b u s i n e s s for w h i c h b u s i n e s s c o r p o r a t i o n s may b e i n c o r Itorated u n d e r t h e B u s i n e s s C o r p o r a t i o n Law, Act of Hay 5 , 1933, P.L. 364
a s amended.
..
ll...t"
1114
18..,#,,1
I1
A . d , t ~ n $ * l l r NtmtDer
Ikl III,I~I.I
N,?
' .~.",
....... ~...
and Pa# V a l u Of S l m r r l W l c h
...........
v l Share. Clr.~.
O( S7.r.l
I
.... I
.no
af,a C I ~ S L01 siures
2 0 0 , 0 0 0 s h a r e s , . common
_. . . . . . . .
tiarlr. ON A M , ~ L ~01i a c h incorpot*tut m a m
e Numbot
!ti.
ttu
Corpormllon Sh1
.1
o l l Stmtrd Par Valshale 11 A""

...
509
Rr
Wv# Authanly 10 IUU
I
I
1. $ . ! m ~ ~ ~ ~ - I P
tua1.-eri
CUSS01 s n s r n SubunbM t o
by ~ a c incolporamoi
h
:E USE ONLY ~
.
UY SlCC
D l 1 Term d Cx#.l.-
042 Total A u U I o r ~ . dUpUl
-- ---.-
MICROFILM
s
NUMBER
E
.
AMOUNT
18
REV
Ill
&I
......
VERICII D 8 1
MI CORPORATION NUMBER
DATE HCJECTED
..
MAIL1 P HV [>A1E
.....
..........
I"l."
BII
Ik."
(U.
ARTICLES
tI
OF lNCORPORATlON
COMMONWEALTli OF PENMSYLVANIA
IJCPAF(1UENT OF STATE U))(POAITlON LIUHEAU
.A!+ NOMTli OFFICF WILDING. MARRISBVHG PA 11120
PLEASE INDICATE ICHECK ONE) TYPE CORPORATION.

DOMFSTIC BUSINESS CORPORATION

A C I O M CORPORAlION COMPLETE 0ACK
FEE
I75
-. W
W M E S I I C PROFESSIONAL CORPORATION
ENTER BOARD L I a N S E N O
...
......................
1 W 3 P O * A l l O l l l Y U S 1 C-OWlAINb CO*PC*lbr# IUUICAIU1 UNI t hS t l F Y P I WUEII I&

P5
M Bl
..................
(PO
. I
an" uwssm NtJl r c c e r r r s r r l
1755 Oregon P .i k.e

.%',I"
ou
..
I
am~v
OY ZIP
O I ~ B I A ~
corn
17601
To h a v e u n l l m i e e 8 power t o engage i n and t o do any l a w f u l a c t c o n c e r n i n g
a n y o r a l l l a w f u l b u s i n e s s f o r w h i c h b u s i n e s s c o r ~ o r a t i o n smav be i n c o r [ n o r a t e d under t h e B u s i n e s s C o r p o r a t i o n Law, A c t o f Hay 5,
1933, P.L. ~ 3 6 4
l.nnca.ster
I
I.'
.I'I Lo*
23
...
I '
'
~~
.lllOH
PA
L a.~n.c. a
. -s. t e r
..
amended.
..,,,, 1 8 ,
# A , , # I 11
84.
. .
.
.
.......
WInPO'.l .O#<ELI PI1 ><1f 1 H t C0.P
IN
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.
CUSWS01 %r.s
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Y
MOI ~
MI Oh?
063 064 *ddress
J.
l.:jrll~.y
Catf:rbone
.......
II
1 2323
IStrl*l
hum-,
a Clerr a1 Snares
D.anville..Pike ,..Cmestnga, P A .l..coar?on.
17516
.-
Clty Stale Lop tod.1
I
New
.......
. . .
.- ..
. . . .
. -.
.
.. -. ..
Par v . 1 ~ ~01 ~nmao. wnartt t h Corpontlon Shall Mn Aulhatly 10I~IU.
MI Staled Par Value Pet
M 2 ToIaI Au(n0rlz.d
Cap11.1
I t 0 1 Tarm 01 E',.lrnw
%mu I1 Any
-1
,*11&L'.*
..........-
19
D l r .t l
.......
..
--pa--.
_L
lf NICIS!..""I
---
IN T C S T I M O N Y W H E R E O F . T H E I N C O R P O R A T O R I S I H A S (HAVE) S I G N E D A N 0 S E A L E D T H E RCITICLES OF INCORPORATI(
--
~.
.
8.41
,]
..... - FOR O f f ICE USE

.....ONLY -
.....
I It*['
NUMBER
.~
&S I C
.:,
D A 1 i AIPHOVELI
.
DATt HLJECIED
.....,.. n ..'11,.
,.
...<........
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I,.."
..
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lh
.......
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,,",.I..
.......
CCHIIFY TO
I u REV
IIII
I. ,! l,l+bH
INPUT BY
V L H ~ Iurn BY
--
.
LOG I N
' -. IS<.O ~ I T
..............
LOG I N lRECllEl
- .
i t nc.
-~
C,!IT
.~II
-.
44 i
r#'?i:n
2w mew811
PIEASE INDICATE ICHECK ONE1 WPE CORPORATION

DOMtSTlC BUSINESS CORPORATION
COMMONWEALTH Of PENNSVLVINIA
DEPA'ARTYENT Of STATE W R K Y ( A l K 1 Y BUIEAU
*h NORTH OfFICt BUILMNG, M R I S L U A G . PA 11120
....................
--

A CLOSE CORPORATION WUPLETE BACK
DOMESTIC PROFESSIONAL CORPORATION

LNTER BOARD LICENSE NO
a*.,* n l Y l <It l . ( W n l H I I ( O U 4 Y f l T C O * l A l N A C W m R I I l ImDICIIOR U111156 EXtY.1
F i n a n c i a l Sec_uyities,.
- .
I c ,
AIHBUI:.5
uL11
--
. . .
01) B1611
OUC**)UlV
~ t l v
a.
0 P 6 slOI a )
llr ~ ~ ~ i l ~ l t m l ~ OI NI CSt N
l C
N Sl l L V b N I I ( P O O O I N U Y L l & I l l O I 6 C C . t P l U I I I
1755 Oregon
Pike
.................
I
W D E I
-- .. -. -- -. - .-.
DU ZIP C O M
].ancaster
PA
17601
--- - Lancaster
. .- I a w A,N in1 PUIPO~ FOH R J PI
s or lnt loai R A ~ I O N
T o h a v e unllmife3 power t o engage in and t o d o any lawful act concerning
any or all lawful business for which business corporations may be incorporated under the Business Corporation Law, Act of May 5, 1933, P.L. 3 6 4 ,
n s amended.
1
8.
34.
I S "
- ----..-.--
N1I:,:.'ilP,I
.
...........
.. . . . . . . . .
..
01 Shams C ~ s . s r01 Share. and Pa* v.1~ o l Sham. mncn I h . COIPO~~IIM Snail IYI Aulhol*ly 10 IYU.
Dl 5Iuv.s
M2 TolU AuthW8z.d Capll*l
Dl1m
T
..
M I 51.lno Phr Value Pm
St&.,. I1 An"
* I.*',I,
l'
I O ~Ac~r:lrllrla
.
Number
11111
Nlanl(lrl alid C4s..
I
1.
200,000 shares,. common
.#..N.*nw .!.a
..........
~ o a , r r s b ~ t a clnryrpo~asu~.
n
and IM Number mold CU.I
.5!)$.
-.
o( Ext.l.ncl
..-~-~$J.o.~.~~Q.-
.....
01 Snare. Sub.cr9b.d to by Each lnCQpa.tOl
IN T E S T I M O N Y WHEREOF. THE I N C O R P O R A T O R I S ) HAS I H A V E I S I G N E D A N D S E A L E D T H E M T I C L E S OF I N C O R P O R A T I (
us...
FOR .0
1-
H<VII & D
100 MICROFILM NUMBER
.- BV
. .....
- ....
D A l t APPROVED
Wil SlCC
-.-- .WI..............
.
..
AMOUNT
CURPOHATION
NUM
I S Y .m
, ~#Rev
~
811
PLEASE INDICATE (CHECK ONE1 TYPE CORPORATION.

DOMt STlC BUSINESS CORPORATION
L)
DOUt STlC RUSINESS CORPORATION

A CLOSE CORPORAllON COMPLETE BACM
T.&NAMONWtA1 TH Of PFNNSVL VANIA

0 DOMCSTIC PROFESSIONAL CORPORATION
rIEP*nTwNT OT STATE - COUKWUTION WHEAU
E N l t R BOARD LICENSE NO
S r , M Y t l H OFtlCt IUIIl 01% H*RRISBaRU PA 111m
. .~
. .
....
. V r l U I - I # < . ( ~ ~ * & ; l l ~ l llY4l.l
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(:(l*lAIY h $&PO(I*IL I N R C L I W VULtSS LXLYPI U D I R I6PS M B I
~
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17','0 O r e g o n P i k e
. -
r,
I . ; l n c ; ~ s t e r...
1
.IL'
A l l 4 1)#1
Inc.~
wni ~ r c i c ~ r e r ~ ~
Accounting S e r v i c e s ,
( - 8 ~ + ~ I . D . , I I Y ~ I ~ O I +~NPINNSIIYINII
ICI
*,'inul
I P ~ ,
I~,II
MIYMR
- -.- - -
........-.-...
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<II t t l COUP Rh16M
. .- - -.00 1.OUNIV
- - --- -- a l l SIhTL
L a...n .ca.
st e-r
---
m4 ZIP CODE
1760 1
PA
Tai h a v e u n l i m i t e d p o w e r 'to e n g a g e i n a n d t o d o a n y l a w f u l a c t c o n c e r n i n g
s n y o r a l l l a w f u l b u s i n e s s f o r w h i c h b u s i n e s s c o r p o r a t i o n s may b e i n c o r -
p a r a t e d u n d e r t h e B u s i n e s s C o r p o r a t i o n Law, Act of Hay 5 , 1933. P.L.
364,
a s amended.
...
8'
,.. .
. . . . t r ....m . . .
I,.,
,,,,,..~.,a,,
,,..,#,,,S,
... ......,..I.. NIIII,~,~.,
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ut
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2 0 0 , 0 0 0 s h a r e s , common
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01
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ilnulpom~ovm a T i ~ u n b a and
z
. .
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v.1~. ~n 042 101.1 ~ u 1 h t r . 0 Coy~l.1
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1cuu5 0 #
5111
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01 Shales
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I P ~ K ~ P ~ ~
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.
~-.J
:
S u b u t l M d 10b y Each ~sorpor.~ol
+-I-=-
Nen D a n ~ i l l ~ i k e L o n e s t n g a
Caterbone
175 16
IN 1 E STIMONY WHEREOF. THE INCORPORATORIS) HAS (HAVE) S I G N E D AND S E A L E D THE ARTICLES OF INCORPORATIC
THIS
.............
.........
D A Y OF ..
-.._19..-
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-
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1?u~611tn
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- FOR Of F
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:E USE ONLY
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. . . . . . .
UATE APPIWVCD
--..- --- - .-
001 CORPORATION NUMBER
..........
DATE REJECTED
>..
..........
.........
....~ . . ~ ~
IL~~,,.~
. ..,.,,.*
th.
............
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....
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Y L L I I L
4~
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WMEsT1c
I .TS
runrunr,,un
CORPORATION

A CLOSE CORPORATION COMPLETE EACU
COMMONMALTH OF PENNSVLVANIA
D WMESTIC PROFESSIONAL CORPLXATION
DFPARTMENT OF STATE - WRPORATION BUREAU
ENTER BOARD LICENSE NO
XM NORlH OfFlCE WILDING. WRRlSBUAG, PA 17110
.
.............
.
.
NIUl 0 1 C&PWIIIO.
I W S T CONIIIN A C W P W A l l INDICAIO. UNLESS E l l Y P l UNDCR 35 P S
81
r,,.
F i n a n c i a l- . -M
ortgage S e r v i c e s , I n c.
...............-...
(75.00
FEE
....
r13014+ksor
~ c w a ~ t m t ~ ~~~on ~ u~ s~r ct vt . r(so
u r sor M Y U E ~ N O T AC.CTPIU.EI
- -.. ----0'- ..CWWIV

-......
L a n c a. s t e r
1755 O r e.g. o. .n-- P. i. .k. . .e.
ob.
$'La"
-.
013 STATE
OU 21P CODE
1 - a n c a s t e. .r. . . . . . . . . . . . .
PA
17601 .).I#* IMt PUmPO..f OH PUIPO 6 Of l b + l COD? RAllON
T o h a v e u n l i m i t e z p o w e r %o e n g a g e i n a n d t o d o a n y l a w f u l a c t c o n c e r n i n g
a n y o r a l l l a w f u l b u s i n e s s f o r w h i c h b u s i n e s s c o r p o r a t i o n s may b e i n c o r p n r a t e d u n d e r t h e B u s i n e s s C o r p o r a t i o n Law, Act of May 5 , 1933, P.L. 3 6 4 ,
a 3 amended.
I"..
............
C . 3 '
" 1 1 1 :....,,1,
18..
N ~ m l w r01 S~.II.L
A.,.II..II*Iw
r4.11,1t.,.la
.10
Cl.*'OI
C1.s~.
01
....
.~
.
.... ~ . .
.
Sttaren and Pal Value 01 Shales rn-osn lM Corporrtton Snmll H
.
r Aulnoral" l o ls.w
I1 - 50$.
SM,.'
UII slrl-n Par v1

.~.
Y1.8.11
;.no,ooo
11.. N.+ml.
* > t 0,
shares,
dtd
common .....
Am11.b~ UI Laat)IIICOI~~I~IV~
aria lhe Nalmbet m d C1.r'
N,,,,,.
. .-
.........
IN
p.r
..
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( S t r l l . Clty 51.
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I~erxsetug~--.
_.!~$.~.DQ.~-OQL
-
ol Shares Sub.cnMd l o by Eacn Incorporator
MI 062
MJ OC* ad are^
Numb., L CImrr 01 S4vr.s
Zlp C00.I
. . . . .
A""
-.. . .
It----
-......
- ...-tA1141."8'
l StllEI I f NlCESSAI1Vl
-l..-1
T L S T I M O N Y W H E R E O F . THE INCORPORATORISI H A S (HAVE) SIGNED A N D SEALED T H t MTICLES OF INCORPORATIC

.
. .
. ......
..... DAY OF
1H I S .
.-
--
~.
REVIEWED BV
. . . . . .
M hlCC
--
.IMTE APPROVED
...
S
....
DATt H t J t C l E D
..
AMOUNT
Ct ItlIFV TO
INPUT BV
. ....
LOG I N IHEFILEI
FINANCIAL
M?mGmmm emz?.L m
LCCENSE AGREEmm
dayof
October
19-8,%etween
Agreementmadethis 17th
Financial MaMgement Group, Ltd., 1755 Oregon Pike, Lancaster, PA, 17601,
(hereinafter called "lTGts) I
and
stanlev J. Caterbone
(hereinafter called
"a-I1
Whereas FrG offers, directly and thnxgh its appropriate affiliates, a

mrmber of pmxhcts and services of value to the Licensee in developing
and implemerrting financial progranrs for Licensee's clients; and
Whereas Licensee desires to utilize the services offered by FMG and its
affiliates;
it is agreed htween the parties as f o l l ~
1. Trade Name
- Licensee acImmle3ges E l G I s exclusive right to the names
ltFinancial Management Group, Ltd.'l, , rn Advisory, I ~ C . ~ ~

Securities,
,
FIG Accamting Services, Inc.,
Inc., F-ial
Senices Insurance
Financial Mortgages Services, Inc., Wealth Management Services, Inc.,
Financial Planning Cnnsultants,
and the program, including bulletins,
prcadwes, supplements, fonas, advertising m a t t e r , devices, senrice
marks, trademark r e g h t i o n s and trade ~ m e used
s
in conneztion w i t h or
hereafter applied for or granted for use in connection with the lTG
Program.
2. Services lTG shall, f m time to time, offer to the Licensee, career

conferences, Seminars and advanced planning schools to which the Licensee
may send qudlified sales persons associated with Licensee, a t his awn
expense. FIG shall develop, from time to time i n its discretion,
pmmtional mmpaigns and sales programs t o assist Licensee in the
marketing of financial p
and services.
FIG shall negotiate insurance contmcts using its collective bargaining

pmer t o obtain a favorable terns as possible w i t h insurance wnrpanies for
the benefit of the Licensee, who w i l l usually be the General Agerrt.
FIG agrees to pmvide consultation
i n nnnagement, developerits, recruiting
and field training to Licensee.

'Ihe parties hereby agree ard acImmledge that Licensee is an
irdepenaent contrador in relation to EIG anJ. is neither an agent of FMG
nor authorized in any way to incur obligations on behalf of ElG. I n the
event FIG shall became responsible for any obligation h a u r e d on its
behalf by Licensee, Licensee agrees to b-demnity and hold harmless for any
and all damages,wsts or a p n s s (including reasonable attorneys1 fees)
relating to any such obligation.
3.
4. Ccaooensation
In consideration for the services performed hereunder
by FIG, Licensee agrees to utilize the insurance marketing services of FIG
or its apprcpriate affiliate, as mch and as often as possible. Lifurther agrees to use his best efforts to place sales of insurance
products through FIG or its affiliates in all cases where such products
are appropriate and suitable for License's clients. FIG or its
appropriate affiliate agrees to pay Licensee in acmndanx w i t h individual
amnnission contracts signed by Licensee, of whatever gross conmissions are
payable, including all overrides and renaYdl anrmissions on those
contracts.
Exceptions may be made f m t h to time with various insurance carriers

without e i n g mDdification of this Agreemmt.
...
5. Insurance Carriers-Soasnuttochmuush ='s
bargaining
-1
Licensee agrees to utilize insurance carriers selected by FIG in all

possible cases.
Office Owration Licmsee shall be responsible for all operating

expnses of his office, including but not limited to, -,
insurance!
payroll, advertking, rent telephme, leased or rented equipaent, M
t
losses, etc. Licensee shall not &ligate F X for any dlaims or actions
which may arise or be asserted against FMG by reason of Licensee's
operation of his office. 'Ihe relationship of the parties is one of
L i m r and Licensee and nothing herein contained shall be construed to
constitute them as partners or joint venor the Licensee as agent or
employee of FMG for any pupose whatsxver.
6.
Licensee shall opxate his office at all t5.m~ in amformity with

appropriate rules and regulations of all goverrmnt and regulatory
authorities of jurisaiction.
Licensee agrees that any p e ~ n
or ~ ~ E Z O W
w h m Licensee shall anploy to
assist Licensee in the performance of his duties heremler shall be the
enployees of Licensee and shall Mt be employees or agents of Financial
Management cxroup, Ltd. Licensee agrees that he will canply with all
F e w and applicable state law relating to the employment of labor,
inclu33q.1but not limited to, caqliance with provision of the Internal
Revenue Ccde relating to pay, all taxes and qliance with applicable
state laws relating to worker's capensation. Licensee shall take such
Steps as are necessary and appropriate to insure that none of such persons
misconceive his or her relationship with Financial Management Group, Ltd.
7 . Tenn-'IhisAgreementmaybetermuM ted by either party for any reason

whatsxver by giving thirty (30) days written notice to the ather and by
full and ample* paywlt of .any outstarding irdebkdress or other
obligation.
Jurisdiction 'Ihis ILgreemerrt shall be interpmted and gwerned by the

laws of the State of Pennsylvania. All of the clauses of this Agreement
are distinct and severable and i f any clause shall be held illegal or
void, it shall not affect the legality or validity of the r a d n h g
portions hereof.
8.
Waiver of Breach
- No waiver,
q m s s e d or *lied,
of any breach
h e r e W by Licmsee shall be deemd a continuing waiver or as a consent
9.
to any fllbsequent breach.
lo. ~ c r r e a n e n t 'Ibis ILgreement supersedes all previous t

s
whether
oral or written between the parties and enkcdies all representations,
biwaents, urders-s
and a g n s e n t s of the parties hereto relato the subject matter hereof.
RLis Agmemmt may not be modified or amerded woept

11. pkdification
a9reaw-k i n writing. All notices hereun3e.r shall be given by
by
regor certified mail, addressed by either party t o the notices
hereunder shall be given by registered or certified mail, addressed by
either party to the other a t their respective addresses written above or
a t such address as said party may designate in writing.
INWITNESWHEREDF, t h e p a r t i e s h e r e t o h a v e e x e c u t e d t h i s ~ t t h e
day and year f i r s t written W e .
BY:
Witmess :
LICENSm :
AWImRY. INC.
P s m T E D PERSON AGFmlmm
m-,
entered into this 17th day of October
~ n v m ~aviLr
t
a Reg'
(hereafter referred to as I'EMG1' ) and
dtanleymerbone
I
an individual (hereinafter referred to as l1
caterbone
11)
1986, by and between F I G AWLWRY, INC.
wiEWX5, FIG is v e d in the business of pxdaing investment

advice and as such is deemed an Investment Advisor as that tenn is defined
a t 15 U.S.C.A. %
. =o
itn
202 (a) (11); and
-!
certain
, an M v i d u a l , agrees t o provide
and perform certain duties and responsibilities on behalf
M r . Caterbone
services
of FM;:
rn 'mmEmm, in considemtion of the mtml prcmiseS and covenants

herein contained, the parties hereto do hereby agree as f o l l m . . Caterbone
1. Amointment. F X hereby appoints and retajns
as an Associated Person as that tenn is defined a t 15 U.S.C.A. 202(a) (17),
-dna
herebyacoeptssuchappointmentfllbjecttothstezlFs
and cmftitions hereinafter set forth.
2.
mties.
M r . Caterbone
w'==:
A. To use his best efforts to solicit and encourage persons

(including M v i d u a l s , families, -ps,
associations,
corporations, d pension and profit sharirq plans) to utilize the
i m r e s b s t advisory serviof FM;.
B. To review financial data suhitted by perxns, finas,
corporations, and others and prepared f m such information a plan for the
attainment of expressed financial gcals in the form of a doarment knum as
a I1Financial Plan1*.
C.
clients.
To render such other -ices
D. Toperformany other w
allmezl by rn that m y be inc*tal
as provided by FM; to its

service as d i n c k 3 or
.rcaterbone
principal
I s
duties.
m.
appointuent will begin

on
, 198-, and w i l l end as of the termhation
date as prwided in Section 9 herein.
3.
4.
M r . Caterbone
I s
LW.
A.
M r - Caterbone
I s fees for the -ices

to be provided
herein shall be based upon Exhibit I1A*l as attached hereto and by reference
incorporated in and made a prt of this A g r e n m t . It is agreed that such
fees shall not bemme earned by, or payable to M r . Caterbo e
until
such fees have k e n earned and collected by F X .
I s right
to payment of such fees shall be subject to l!K+'s refund rights as set

forth below.
B. mz reserves the right, in its sole discretion, to

refund any client all or any part of payments or fees made by client,
and ~ r Caterbone
.
agrees to reimburse FtG prcmptly his fees earned in
connection therewith. FIG is authorized to deduct fnmn any fees due or
herwnder the arnunt m d for
that may b c c e due to M r . Caterbone
any such repayment of fees.
5. Reimbursement of EmJenses
furnish
6. office mce, secretam. Etc. FtG will

Mr. Caterbone
with office facilities, secretary or
a&inistxative assistance, am3 any other facilities. 6 - t

and
supplies that F X in its sole discretion determines as adequate for the
performance of Mr. Caterbone Is duties and reqmnsibilities.
7. Relationshiu
A. Mr. Caterbone
acJolowle3ges that all persons

investment advisory services shall be clients of FIG and all
investment advice rendered shall be rendered by or on behalf of
seeking
%.
B. Nothing herein shall be construe3 to create the relation

Caterbone and FIG, nor between any
of employer and employee between
M r . Caterbone
employee of FIG and Mr. Caterbone
shall be free to
exercise his awn judgment as to those persons f m wfiam he will solicit
business, the method of solicitation and the time and place of
solicitation; provided, hmever, that in such activities
MY. eshall conform to such llsupervision'land policies as may be established by
FIG in order to amply with all applicable statues, rules and regulations
gwthe solicitation and rerdering of inveshmt
advice. Mr. Caterbone shall be free to devote whatever time he chooses
to any other business he may choose. M r - Caterbone
1 haw-,
agrees that he will hndiately notify FIG in writing if he acquires or
obtains any interest or affiliation or engages in any enplcryrrwt.relating
to the sale of securities or invesbm-ks, either direct1Y or mdrrectly,
either alone or with any person or entity other than FSC Securities
Corporation, relating to any other activity that would cause a conflict of
interest on the part of
~ rCaterbone
.
with respect to FIG. The
term "supmisionI1is not used to connote, nor shall it be deemed to mean
the exercise of any degree of control by FMG which would
cause
Mr. Caterbone to be anything other than Meperdent
contractor vis-a-vis FIG. (Note:
m. Caterbone
is free to work as
mu& or as little as he chooses in any location he chooses. He will have
ocmplete control wer the details of his work and he is free to engage in
any other employment or activity he chthat does not create a
conflict of interest with his responsibilities under this Agreement).
C. This agreement is one for the services

of ~ r Caterbone
.
who shall not be entitled to assign or delegate to
any other person the authority and &ligations assumed or any rights,
claims or interests granted or arising hemmider.
A. A s part of the proper performance of his duties

hereM r . caterbone
shall familiarize himself w i t h , and a t a l l
t i m e s durhxj the term of this Zqmmmt shall canply with, the statutes,
regulations, r u l e s and statements of policy promulgated and administered
by the Securities and Exchange Ccnanission, particularly the Imrestment
Advisers kt of 1940, a l l other statutes, regulations and rules of the
Federal Government, or any state or nnmicipal gwemmerhl or regulatory
agency, any of which may now or hereafter apply to M r . Caterbone
activities hereunder.
B.
~ r Caterbone
.
shall timely apply for, obtain
and maintain a l l necessary licenses, m
t
s and registrations as shall be
required by any statue, or regulation in corrnection
with
M r . C&&
, bone
I s activities hereunder.
C.
M r . Caterbone
shall not use in comection with
his solicitation activities hereunder, whether by direct mail, personal
distribution of printed materials, newspapers, radio, telwision or by any
other media, any sales or advertising litemture not specifically supplied
and authorized by FMG for that purpose u n t i l he has f i r s t obtained prior
written apprwal of his praposed use of such literature by the a-mpriate
officer of FIG who has been designated responsible for such approval.
A.
W i t h o u t Cause
1. miSLqeeumtmaybeterminatedbyeitherparty
without cause a t any t b by placing written notice of such tenrimtion in
the U.S. mails, addressed to the other party hereto, either
a t Mr. Caterbone
I s last k x m address as contained in FMG1s records
(such address may be changed from t k to tink= by written notice thereof
being sent to and filed with FMG) or to FMG a t its then principal place of
business. In addition, the
shall a w t i c a l l y terminate in the
event of the death of M r . Caterbone
2 . I f termination of this Pqreaoent is
ne
terms of Section 6(a) (1). FMG shall continue to pay eter
after termination or to his estate after his death, so long as such action
is not wntrary t o law, all fees on those services received from and
appmved and accepted by FMG prior to the date of termination and which
9.2-
were earned under Section 4 hereof less such deductions or set offs as FIG
may be atitled to heremder.
B. With Cause
1. ~n
the event Mr. Caterbone
is declared a
ban)uupt, makes an assignent for the benefit of cxeditons, has a receiver
or trustee a p p o h t d for this property, f a i l s t o canply with any of the
terms, corditions and obligations of this Agmement, conduds himself in
any manner which FMG, in its unrestricted discretion, determines to be
detrhmtd to its b u s h or reputation, or in any way acquires, obtains
or engages in any interest, affiliation or enploymerit relating to the
solicitation of the plrchase or sale of securities or i n v m t s or
m f e r i n g of inveslnmt advice, either direct or indirect, either alone or
w i t h the person or entity other than FMG, FMG my irmnediately terminate
this Agmement, such termination being retroactive to the h a m of
such went(s) and FIG'S &ligation to pay fees, shall hndiately cease
upon such termination, without notice; and such termhation shall in no
way affect FIG'S right to mllect any
- be due it
- amnmts which may
f
&
M r C i l t ~ ~
2. If anv of the aram%sfor termination srecified in
Sedion 6(b) (1) above &
l
EX&
at the' time of a &tion
pursuant to
a
ternuna
tion
pursuant
to
section
6(b)(1)
=ion
6(a), it shall be .deemed
.
for the purpose of determvLlng whether any fees are
MT. c
n
e
aftex termination. Failure of FIG to
after kncxildge that gnxlnds for termination
tenni~tethis
&st u d e r Section 6(b) (1) above shall not be deemed a waiver by FPG of
its rights to terminate this Agrement under such Section at any later
date.
10. Notices. All notices, applwals and other ommumications

provided for herein shall be validly given or made if in writing and
delivered or mailed, certified mail return receipt requested, to FIG
Advisory, Inc. at 1755 Oregon Pike, hxaster, Pennsylvania 17601, and
to ~ r Caterbone
.
at
2373 New Danville Pike , Conestoga, PA 17543
11. Assianment. No assignmnt of this Agnement shall be made
without the q r e s s written consent of the parties hereto.
12. Cantions. Captions are used in this agreaent for amenience
only, and are not W e d
be used in construction or interpretation of
this agreement.
13. Severability. In case any one or more of the provisions
contained herein shall for any reason be held to be invalid, or
unenforceable in any respect, such invalidity, illegality, or
menforceability shall not affect any other provision hereof, and this
agreement shall be construed as if such invalid, illegal, or unenforceable
provision had never been contained herein.
14. Entire Acrreement. 'Ibis Agnement supersedes all previcrus
Agrements whether oral or written between FIG and I@- Caterbone
and embodies all nqmesentations, ,
undand
agreements of the parties hereto relating to the subject matter hereof.
m e terms hereof may not be w e d except in writing ciuly signed by F I G
and
Mr. Caterbone
Time is of the essence of this Agrement.
15. Governina Law. lhis Agrement shall be deemed a Pennsylvania
contract and shall be governed and construed a o c o to
~ the laws
thereof.
16. SuCceSSOrS and Assisn~. This Agreement shall be binding upon and
jnure to the benefits of the heirs, successors, and assigns of the parties
hereto.
IN WI?NESS WI-EREOF, the parties hereto have caused this documMt to
be executed the day and year above first written.
BUSINESS PROPERTY LEASE

BY A N D BETWEEN
EDEN PARK ASSOCIATES I I

(A Pennsylvania General Partnership)
A S LESSOR
AND
FINANCIAL M A N A G E M E N T GROUP, L T D .
( A Pennsylvania Business Corporation)
and
MICHAEL M. H A R T L E T T , lndividual
STANLEY J. CATERBONE, lndividual
and
ROBERT E. K A U F F M A N , lndividual
AS T E N A N T
FOR.
EDEN P A R K II
m h n i s s h by Lessor to Tenant of a proposed lease shall have IW

binding force or efect, shall not ccnstitute an optim for the leasing
of the premises. r r x &er
any rights or m s e any obligaticnr. upcn
zither party until the executim of a lease agreemnt by Lessor and the
delivery of HI executed original copy thereof to Tenant or its
representative. FlmAemure. the parties shall mt be band by q
written or oral representatb benreen them, directly or thnxgh any
representatim, except as specLLcally i ~ ~ r p ? d t e
indche lease
a g r e m t referred to above.
EXRIBIT D
J-
,IJS'~NESSLEASE A
'eluding, but not being

'ereon, of the cone Undersigned hereby
5 time without notice
:h respect to the
Persons (including
ncluding but not
e s , waivers, surrenIn fully liable
!Ver, that the
n all of the
hereunder of the
way affect the
:aPacit~of any of
any other of
f all laws now Or
~bilityof the
!fenses whatsoever
Payments made on
#.and /b) all
:'On
to enforce
EDEN PAPS
ASSOCIATES 11
AND
[-
~INANCIALMANAGEMENT GROUP, LTDAND

HICM. WTLETT,
~ndividual
AND
.~
STANLEY J. CATERBONE, ~ndividual

AND
LEASE
i- ~ d ethe ldgldaY
P.o. Box
GUA-
of
2 5 4 , New
~~~~
GROUP, LTD. and MICM.

E- ~~~, adult indjviduals, have
\ 'Agreement datedC>f+rLLl f
with EDmPRRI[
2
' ;em); and
A
15/a#
I
.
?
of any character
es
~ B ETW E N
w~c~~
GROUP,
miLTD.
~ is a pennsylvania business torigned have agreed to personally guarantee the Tenant's P C Lease.
the Undersigned
On demand all
fa1 expenses)
the liability of
f
.&
i . intending to be legally bound and in consideration of the

.rein contained the parties agcee as follo~s:
Guaranty. The Undersigned hereby unconditionalL~quacanperiod of five ( 5 ) years from the date of C O - C L ~ ~ ~ L of the
, the prompt performance of the obligations of the Tenant when
c md any alte~tionsor modifications thereof. which alterations
y,
be made without notice to or the consent of the
1
L~~~~and said alterations and modifications are hereinafter
: ..,'Leasea.
The liability of the. Undersigned hereunder is
3,nditional and shall not be affected in any Way by prior reason
:e to retain or pceserve, or the lack of prior enforcement of,
it any person or pecsons, (including the Tenant and any of the
I in any property, (b) the invalidity of any sudh rights which m Y
e obtained, (c) any delay in enforcing or failure to enforce
2 , + v - ~if such rights are thereby lost, or [dl
delay in
undersigned for payment of the Undersigned's obligations
t l t
lr shall be
gists of snore
Le hereunder,
lnts by a e
It and to be
ned by the law
'e* the
court Of
rsi9ned and,
~dgment's',
'cessors and
by the
htecest
!ection an
th.
Lngs that
I Or execu-
COUNTY OF LANCASTER
,JIu~ i&
I HEREBY CERTIFY, t h a t o n t h i s E h d a y o f
1986,
b e f o r e m e , t h e undersi'gned, a N o t a r y P u b l i c f o r t h e a f o r e / s a i d S t a t e and County,
p e r s o n a l l y a p p e a r e d Raymnd E. I x , who acknowledged h i m s e l f t o b e t h e Managing
G e n e r a l P a r t n e r o f Eden P a r k A s s o c i a t e s 11, a P e n n s y l v a n i a g e n e r a l p a r t n e r s h i p , and
t h a t h e a s s u c h Managing G e n e r a l P a r t n e r , b e i n g a u t h o r i z e d t o d o so, e x e c u t e d
t h e f o r e g o i n g G u a r a n t y f o r t h e p u r p o s e s t h e r e i n c o n t a i n e d on b e h a l f o f t h e p a r t nership.
I N WITNESS WHEREOF, I h a v e h e r e u n t o a f f i x e d my hand and s e a l t h e d a y and
y
.e a r f i r s t above w r i t t e n .
fiG+fi
'J/.
bhLcy:~i
N o t a r -y P u b l i c
My Commission E x p i r e s :
I HEREBY CERTIFY, t h a t o n this may
of
t 198L,
a t e a n d County,
&--0.f 5 p@r?cl'a
c
c r'
7. C C I ~ - V ~ - - .
r r ,.& 'k)c:b t+
F- f,fi b . 6 - n r L . n .P I & !cr 9
known t o m e ( o r s a t i & f a c t o r i l y p r o v e n ) to b e t h e w r s o n s dhos'e names a r e
s u b s c r i b e d to t h e f o r e g o i n g ~ ; a ; a n t y , - a n d t h e y acicnowledged t h a t t h e y e x e c u t e d
t h e same f o r t h e p u r p o s e s t h e r e i n c o n t a i n e d .
I N WITNESS WHEREOF, I h a v e h e r e u n t o a f f i x e d my hand a n d s e a l t h e d a y a n d

y e a r f i r s t above w r i t t e n .
h % h a.aJ'%lM4.i,
~ o t a r yP u b l i c
MY' C o m i s s i o n E x p i r e s :
3 2 . CONSENTS.
I n a n y i n s t a n c e i n which t h e " c o n s e n t " o r " a p p r o v a l n o f
L a n d l o r d o r T e n a n t is r e q u i r e d h e r e u n d e r , s u c h r e q u i r e m e n t s h a l l n o t b e
i n t e r p r e t e d a s j u s t i f y i n g a r b i t r a r y r e j e c t i o n but s h a l l connote a r e a s o n a b l e
a p p l i c a t i o n o f judgment.
L
3 3 . COml'ERPARTS. T h i s L e a s e may be e x e c u t e d i n any numtxr o f c o u n t e r p a r t s , e a c h o f which s h a l l be deemed to be a n o r i g i n a l a s a g a i n s t a n y p a r t y

whose s i g n a t u r e a p p e a r s t h e r e o n , and a l l o f which s h a l l t o g e t h e r c o n s t i t u t e o n e
and t h e same i n s t r u m e n t .
T h i s L e a s e s h a l l become b i n d i n g when o n e or mre count e r p a r t s hereof, individually o r taken together, s h a l l bear the s i g n a t u r e s o f
a l l t h e p a r t i e s r e f l e c t e d h e r e o n as t h e s i g n a t o r i e s .
34. !ZNTIRE AGREENENT. T h i s L e a s e s e t s f o r t h a l l o f t h e a g r e e m e n t s a n d

u n d e r s t a n d i n g s between L a n d l o r d and T e n a n t r e l a t i v e to t h e l e a s e h o l d e s t a t e i n
t h e P r e m i s e s h e r e b y c r e a t e d and t h e r e a r e no o t h e r p r o m i s e s , a g r e e m e n t s , cond i t i o n s o r u n d e r s t a n d i n g s , either o r a l or w r i t t e n , between them w i t h r e s p e c t t o
t h e P r e m i s e s or t h e l e a s e t h e r e o f o t h e r t h a n a s s e t f o r t h h e r e i n .
Except as
o t h e r w i s e p r o v i d e d , no s u b s e q u e n t a l t e r a t i o n , amendment or a d d i t i o n to t h i s
L e a s e s h a l l be b i n d i n g upon a L a n d l o r d or T e n a n t u n l e s s r e d u c e d t o w r i t i n g a n d
s i g n e d by b o t h L a n d l o r d and T e n a n t .
35. BINDING EFFECT. A l l p r o v i s i o n s c o n t a i n e d i n t h i s L e a s e s h a l l be

b i n d i n g upon, i n u r e t o t h e b e n e f i t o f and b e e n f o r c e a b l e b y t h e r e s p e c t i v e s u c cessors and a s s i g n s o f L a n d l o r d and T e n a n t t o t h e same e x t e n t a s i f e a c h s u c h
s u c c e s s o r and a s s i g n were named a s a p a r t y h e r e t o .
I N WITNESS WHEREOF, L a n d l o r d and T e n a n t have c a u s e d t h i s L e a s e to b e exe-
c u t e d o n t h e d a y and y e a r f i r s t above w r i t t e n .
"LANULORD"
WITNESS:
ASSOCIATES I1
/@Z!L:(~
[&L3
GROUP, L t d .
By:
Secretary
WITNES
&-/5/Jh?--
/president
, Individual
man, I n d i v i d u a l
OPTION AGREEMENT
AGREEMENT made t h i s
, .A.D.,
day o f
19E
by a n d b e t w e e n R o b e r t F. K a u f f m a n ( h e r e i n a f t e r r e f e r r e d t o a s
"Kauffman") a n d S t a n l e y J . C a t e r b o n e ( h e r e i n a f t e r r e f e r r e d t o
a s " C a t e r b o n e " 1.
W I T N E S S E T H :
T h a t i n c o n s i d e r a t i o n o f One D o l l a r ( $ 1 . 0 0 )
*
receipt of
w h i c h is h e r e b y a c k n o w l e d g e d a n d o t h e r g o o d a n d v a l u a b l e c o n s i d e r a t i o n , a n d i n t e n d i n g t o b e l e g a l l y bound h e r e b y , t h e p a r t i e s
h e r e t o mutually a g r e e as follows:
1.
Option.
Kauffman h e r e b y g r a n t s t o C a t e r b o n e t h e o p t i o r
t o p u r c h a s e t e n t h o u s a n d ( 1 0 , 0 0 0 ) common s h a r e s of F i n a n c i a l
Management G r o u p , L t d . ,
a Pennsylvania b u s i n e s s c o r p o r a t i o n , on
t h e terms s e t f o r t h h e r e i n .
2.
.,
P u r c h a s e P r i c e . , The p u r c h a s e p r i c e p a y a b l e f o r s u c h
s h a r e s s h a l l b e p a r v a l u e , s p e c i f i c a l l y f i f t y c e n t s (50C) p e r
s h a r e , i n c a s h o r by c e r t i , f i e d c h e c k t o b e p a i d by C a t e r b o n e t o
..
Kauffman upon d e l i v e r y of s u c h s h a r e s .
3.
Exercise o f Option.
T h i s o p t i o n t o purchase s h a l l be
e x e r c i s e d by C a t e r b o n e upon n o t i c e i n w r i t i n g t o Kauffman a t t h e
registered offices of t h e corporation.
C a t e r b o n e may e x e r c i s e
a n d r e - e x e r c i s e t h i s o p t i o n from time t o time f o r t h e f u l l numbe
o f s h a r e s set f o r t h h e r e i n o r any p a r t t h e r e o f .
4
Closing.
D e l i v e r y of s h a r e s a n d p a y m e n t o f t h e p u r c h a s
price s h a l l take place within forty-eight
(48) h o u r s a f t e r
r e c e i p t by K a u f f m a n o f t h e n o t i c e o f t h e e i e r c i s e o f t h e o p t i o n
a t s u c h time a n d a t s u c h p,lace a s t h e p a r t i e s s h a l l m u t u a l l y a g r
5.
Representations.
a)
Kauffman r e p r e s h t s t h e f o l l o w i n g :
He i s . t h e s o l e o w n e r a n d h a s ? h e r i g h t t o s e f l
t h e t e n t h o u s a n d ( 1 0 , 0 0 0 ) s h a r e s of F i n a n c i a l Management
Group, Ltd.
b)
S u c h s h a r e s a r e now a n d u n t i l t h e c l o s i n g w i l l b e
f r e e o f a l l encumbrances.
C)
C a t e r b o n e s h a l l r e c e i v e good a n d m a r k e t a b l e t i t l e
t o s u c h s h a r e s , free and clear o f a l l encumbrances.
6.
Benefit.
T h i s Agreement s h a l l b e b i n d i n g upon t h e
p a r t i e s , t h e i r h e i r s , l e g a l ' r e p r e s e n t a t i v e s , s u c c e s s o r s and
1
assigns.
I N W ~ T N E S S WHEREQF, t h e p a r t i e s h e r e t o h a v e h e r e u n t o s e t
I
t h e i r h a n d s a n d s e a l s t h e d a y a n d y e a r f i r s t ~ b o v ew r i t t e n .
Witnesses:
R o b e r t F. Kauffman
S t a n l e y J. Caterbone
NOTE
$20,000.00
November
1986
F o r v a l u e r e c e i v e d , I , t h e u n d e r s i g n e d , p r o m i s e t o pay t o t h e
a t 1755 Oregon P i k e ,
o r d e r o f F i n a n c i a l Management G r o u p , L t d . ,
Lancaster, Pennsylvania,
D o l l a r s ($20,000.00)
1 7 6 0 1 , t h e t o t a l sum o f Twenty Thousand
i n i n s t a l l m e n t s , a s s e t f o r t h as follows:
J a n u a r y 3 0 , 1987
F e b r u a r y 2 8 , 1987
March 3 0 , 1987
A p r i l 3 0 , 1987
May 3 0 , 1987
J u n e 3 0 , 1987
J u l y 3 0 , 1987
August 3 0 , 1987
Upon d e f a u l t i n t h e payment o f a n y s u c h i n s t a l l m e n t when d u e ,
t h e whole o f t h e p r i n c i p a l sum t h e n r e m a i n i n g u n p a i d s h a l l , a t t h e
o p t i o n o f F i n a n c i a l Management G r o u p , L t d . ,
become i m m e d i a t e l y d u e
and p a y a b l e w i t h o u t demand o r n o t i c e .
And f u r t h e r , t o s e c u r e t h e payment o f s a i d a m o u n t , I h e r e b y
a u t h o r i z e , i r r e v o c a b l y , any a t t o r n e y o f a n y c o u r t o f r e c o r d , t o
a p p e a r f o r me i n s u c h c o u r t , i n t e r m , t i m e o r v a c a t i o n , a t any
ti m e h e r e a f t e r , and c o n f e s s a judgment, w i t h o u t p r o c e s s , i n f a v o r
o f t h e h o l d e r o f t h i s N o t e , f o r s u c h amount a s a p p e a r s t o b e
unpaid t h e r e o n , whether due o r n o t , t o g e t h e r w i t h c o s t s , i n c l u d i n g
c o l l e c t i o n c o s t s a n d a t t o r n e y ' s commission o f f i v e p e r c e n t ( 5 x 1 ,
and t o w a i v e a n d r e l e a s e a l l h e i r s w h i c h may i n t e r v e n e a t a n y
s u c h p r o c e e d i n g s a n d c o n s e n t t o i m m e d i a t e e x e c u t i o n upon s u c h
j u d g m e n t , h e r e b y r a t i f y i n g and c o n f i r m i n g a l l tha-y
said attorney
may do by v i r t u e h e r e o f .
S H Y Robeftson
W e , FMG, L t d . , d o h e r e b y a g r e e t o s e l l 1 0 , 0 0 0 s h a r e s o f FMG,
L t d . s t o c k t o S c o t t R o b e r t s o n f o r a p r i c e o f $2.50 p e r s h a r e .
The a b o v e n o t e i s f o r t h e b a l a n c e o f t h e f u l l 2 5 , 0 0 0 a g g r e g a t e
p r i c e o f w h i c h $ 5 , 0 0 0 . h a s a l r e a d y b e e n p a i d by S c o t t R o b e r t s o n .
A l l s t o c k c e r t i f i c a t e s w i l l b e i s s u e d upon c o m p l e t i o n o f payment.
I f ~ a v m e n tc e a s e s , a l l c o l l e c t e d f u n d s w i l l b e u s e d t o p u r c h a s e
s h a r e s a t $5.00 p e r s h a r e .
. ..
February 12
Ten Thousand
AN
f//47/' / Pr=eJ/;.,+A: /.
f
I
i. un-rr ~
...................................
o
//lI~,/~/~i;~~fi/t~fit,t~~~/~I/d_a_te
k.+w
-'r. '
,m
v = s d m @ f - .
10-
~~
- b~
h -~
J ~ ~
c ~ ~
& o r~u l~
t ~~
nm rFaun
~
U ~ >
ArrJtkMdcd
. r &
l ~ udr ~;
~ ~b
~
c * ~ ~ t ~ r u n l, yu . ir ~
n *~w r ; ~
~ ~~ ~ ~ a r * r r r ~ ~ t ~
T f f g % z ~m
irnw
q ~ ~m" d ."dUC
& lard.
A a t O/]lce Ada'n~s.
n.-.k-..,rv
13
.~/)RR
Schedule D of
Form ADV
Page 2
SEC File Number:
mu:
7/15/58
4
12.)
llRS Emol. Ident. No.:
1 200-46-0959
1 1024102
(Number bnd Yrr+l)
(C~IY)

(b) Binh
Pan I Items II and
(see P M Illan IA)
3. (a) lmideocc of inhvidlul:
2/18/87
MI. 28743
(Answers for Form ADV

I. A ~ ~ l i ainwYmn(
nl
adviyr:
Dae:
Conestwa
I(c) Cily:
I
(Ute)
[(d) S u l e or Province:
b~
I PA
I p an caster
(Zip Code)
PA
NAMES USED. Li all ma-other lhthe one giwn in 1 1 6 2 above 1h.l the individual has uud, iaeludine maiden lumn.
(W)
(Firu)
(Miidle)
N/A
5. EDUCATION. Scan with lul hiph v h d attended. Ifno dqrec rreclved, slate "none."
Ycan
Atunded
Sehd: ( N e . City and W e )
Lancaster Catholic Hish. Lancaster. PA
la76
Millersville University, Millersville, PA
1980
Series
Series
Series
Series
~~
Year
rdluced
6, March 1982 NASD

22 July 1983 NASD
63 March 1982 NASD
7 July 1985 NASD
the tilk ard dale 01 the mion.

the murt or W y 1akiw lhc w l h .
a donipion or lhc l
n
h
For Colk#c and above

Degree
Major
BSDA/Manaaement
Certified Financial Planner; M l q Of Certified F i r m

Pl;nmr
mpleted Section 1-IV as of 4/86
Schedule D of
F6rm AD\I
Page 2
&C File Numbn:
801-
(Answers for F o r m ADV
-. I. A p p l ' i n l inreYmcnt adviser:

/
.J
Pan 1 Items
Date:
28743
2/18/87
II and 12.)
(ucPan I Item IA)
IRS Empl. Idcnt. No.:
23-2431433
2. Individud's full M ~ Cfor whom this

Schedule is k i n g compkted:
Robert E. K a u f f m
3. (a) Rcsidenm of individual:
Saial Saurily Number:
CRD No.. ilany:
190-44-9057
829384
(Number and Slrat)
(city)
1306 tieaconfield Drive

(b) Birth Dale:
Lancaster
(c) City:
(State)
(Zip Ccdc)
PA
17601
(d) Slate or Province:
Rearing Sprinq
5/31/54
IRS Empl. Idmt. No.:
(e) Counlry:
PA
USA
NAMES USED. Lisl a11 M m n other than the one given in ltcm 2 above that the individual has u d . ineludin* maiden rumcs.
(hr)
(Firn)
(Middle)
4.
EDUCATION. Start with last h i ~ xh h w l atlrndcd. I1no desrce raelved. stale "none."
Years
Year
Allended Graduated
School: (Name. City and Sntc)
Central High School, Fartinsburg, PA

Millersville St. College, Millersville, PA
1976
B.S. Mathematics
Vice Pres.
RIA
Advisory, Inc.
I
7.
1972
I ~inancialplan./ President
I
Fm;
12
For College and above

Major
Dcgm
,
86 Prese
I
I
EXAMlNATlONSlPROFESSlONAL DESIGNATIONS. List a l l jurisdiilion. ull.re(ulalory or#anization. and prornsional ercarninations and dna(
loons G ~ r erxam~naloonor dui;ruloon lumc (include any eaaminalion's titlr a d number). body sirin8 it. and dale taken or conferred. I f cramsrul
was waived, ;ivc details.
Series 6, 11-12-76 NASD

Series 63, 11-12-76 NASD
CFP Units I, 4/85, Unit 11, 9/85, Unit 111, 12/85, Unit IV, 1/87
NASD Series 7 General Securities, 10-2-85
NASD Series 24 Reqistered Securities Princiwl, 5-14-86
PROCEEDINGS. For each
'w' answer to Pan Illn ll involving the individual.
lhc advixr and individwli named.

Ihc lillc ;md date 01 lhc rcion.
thc courl or body taking thc action. and
a dtrriplion 01 the mion
tiwe the i d l m u i dnaili

~
of any rwurt or rcguhlory action:
'Ihis Agreement, made and entexed into this 2lst dayofMay11987,byarrl

beFINANCIAC
cxm, m.,
a FemsyrW a11~0ratiop1and
R3E!ERT E. IWJFFmN, a resident of Fmtqlvania ("KauffmanlI).
m)
F K ; ~ a c c p l t r o l l h q ~ i n F K ; A d v ~ , I n c . , F K ; A u x x l n tI i n g
FK; Securities, W.,
and other subsidiaries.
WHEREAS,
the
F!
and that,
. parties desire that Kauffman bearme affiliated with G
asmectlon thi.lewth,
Kaufhan be granted a certain -tary
arrangement for his work.
WHEREAS,
in
N&.l, -,
for and in considexation of the mtual pmnises herein
Contained, and other good and valuable considetation, the receipt and
sufficiency of which are hereby aclrmlakjed, the parties hereto do hereby
agree as follm:
1.
Affiliation w i t h FM;. amensation and Cbtion of Shares, Kauffman

shall bearme affiliated with EIG as r;oan as practicable and FK;
shall aoxmm3ate and expdite such affiliation.
It is agreed that icjuffman receive the follawing:
a ) . A base salary of $75,000 annually to be paid on a monthly
basis as income begJune 1, 1987.
b).
to be paid monthly amxnrting to 3% of Gmes Sales

inal1areaswhereFK;doestxlsiness. Grcessalesis
defined as Mal ommission allcmance by any sponsor,
imxance mnpany, mortgage moparry, or ather verdar; or
Mal fees colletd by the RIA, Acaxnrting, or other
fee based business.
A boaus
It is &gre3that FM; w i l l receive the folludng:
a).
b)
a)i
Kauffmn's tatal fidelity in working solely for the

developmt of EX'S hiness as President of Fl3; W.,
andQlainoanoftheBoord.
Kauffmn agrees to limit his jneane from p e r m sales
to $30,000 annually and a g n not
~ ~to pnsue persondl
sales solicitation thrruFpl any nears other than
ooasicslal referrals.
Shaild Kauff?nm d e s h to alter this agreement w i t h i n

swen yaws, FM= k d d have the right to collect danmges
~ r m r ~ f l t h e l c s t v e s t i n g o f ~ e ~ ~ ~ s
signed on m y 18, 1987. K a u f h m could, however, petition
release fran any &ligatim. Icauffnw could also be
released ha any abligatim to enplayment with FM= shauld
PSGnameswxsxstoIhuffbDanintheiragreementwith
FX dated Uay 18, 1987.
b). EX, W . , agrees not to alterthis agremmt for any

reascn for as l q as KaUffmn Cprates his business
en%wors with corporate f i d e l i e , ani is not m i c t e d
of a crime w h i c h wmld prwe to be sufficient as to
errhnger the corpratim (above mh&mamr level).
IN wmmsWHEREXF, t h e p & z i e s h e r e t o h a v e ~ * ~ t h e d a ~ a
year first above written.
On this 21st day of May, 1987,
FINANCIAL-GIMUP,
IUD.
before me a notary public, the under7
signed officer, personally appeared
Robert R. Long, Jr. and Robert E.
Kauffman, known to me to be the perso
whose name is subscribed to the withi
instrument, and acknowledged that they
5executed the same for the purposes
1
1
M
therein contained.
In witness whereof, I hereunto set my hand and official seal.
.,
*:
I
mmission ex ires 12/10/90
Compact Disc manufacture!^
AMERICAN HELIX S- STAN J.CA?'EKBONE

UUSlNESS AGKEEhIENT
EFFECTnTE OCTOBER 1,1990

TERMS: This agreement between American Helix Technology Corporation, Inc., and Stan J.
Caterbone, both of 1857 Colonial Village Lane, Ianci~ster,PA 17601 will be valid until February
1, 1991, at which time both parties may negotiate a new ageement for the remainder of the year.
In the event that a new ageement is not settled upon, this agreement will prevail until the new
ageement is implemented. Each party c a n withdraw from this agreement by submitting a 30 day
notice in writing, to the other party.
Any contracts awarded from prospects and marketing efforts up to February 1, 1991, or until a new
contract is negotiated, will be administered under this agreement. AU contracts must have prior
approval by David D. Dering prior to acceptance by American Helix.
Under the termination of a relationship, Stan J. Caterbone, will be entitled to all commissions and
revenues entitled herein for contracts currently under development, and agrees to complete all
necessary requirements of the said project? from end to end.
AGREEMENTS
CD-ROM Raw Disc Replication - American Helix will receive 90% of the raw disc price.
Stan J. Caterbone will receive 10% of the raw disc price. All pricing below $1.00 will be
negotiated on a case by case basis. American Helix will be guaranteed a minimum price
of $ .85 on all projects. Any mastering costs above a wash to American Heliu, will be
recovered against replication commissions.
Mastering - American Helix will receive 15% of the net margin of the premastering and
data preparation services performed by Stan J. Caterbone, American Helix is guaranteed
at least a net wash of all mastering costs.
will be paid upon invoicing of projects. Any past due accounts over 90
a reversal of commissi
reinstated upon paym
"
.-
STATE OF GEORGIA
COUNTY OF COBB
THE FINANCIAL GROUP, INC.
STOCK OPTION AND OWNERSHIP AGREEMENT
T h i s A g r e e m e n t , made a n d e n t e r e d i n t o t h i s - d a y o f
A p r i l . 1 9 8 7 . b y a n d b e t w e e n THE FINANCIAL GROUP, I N C . , a G e o r g i a
c o r p o r a t i o n ( " T F G " ) , THE PLANNER'S SECURITIES GROUP, I N C . . a G e o r g i a
c o r p o r a t i o n ( " P S G " ) a n d ROBERT E . KAUFFMAN, a r e s i d e n t o f
Pennsylvania ("Kauffman").
WHEREAS. TFG owns a c o n t r o L l i n g i n t e r e s t i n PSG, a

r e g i s t e r e d broker-dealer; and
WHEREAS, t h e p a r t i e s d e s i r e t h a t K a u f f m a n ' s f i n a n c i a l
p l a n n i n g company, F i n a n c i a l Manaqement G r o u p . L t d . ( t h e "PLanning
C o m p a n y " ) become a f E i L i a t e d w i t h PSG a n d t h a t . i n c o n n e c t i o n
t h e r e w i t h . Kauffman be g r a n t e d c e r t a i n s t o c k o p t i o n and o w n e r s h i p
r i g h t s i n PSG:
NOW, THEREFORE, f o r a n d i n c o n s i d e r a t i o n o f t h e p r e m i s e s
a n d m u t u a l p r o m i s e s h e r e i n c o n t a i n e d . a n d o t h e r good and v a l u a b l e
c o n s i d e r a t i o n . t h e r e c e i p t and s u f f i c i e n c y of which a r e hereby
acknowledged, t h e p a r t i e s h e r e t o do hereby a g r e e a s f o l l o w s :
1.
A f f i L i a c i o n w i c h PSG a n d O p t i o n o f S h a r e s .
Kauffman
s h a l l c a u s e t h e P l a n n i n g Company t o b e c o m e a f f i l i a t e d w i t h PSG a s
s o o n a s p r a c t i c a b l e and-^^^ S h a l l a c c o m m o d a t e a n d e x p e d i t e s u c h
affiliation.
Upon t h e a f f i l i a t i o n o f t h e P l a n n i n g Company w i t h PSG,
TFG s h a l l g r a n t a n o p t i o n t o K a l i f f m d n f o r s u c h n u m b e r o f common
s h a r e s o f PSG a s d e t e r m i n e d b e l o w :
For each $1,000.000 of annual g r o s s

c o m m i s s i o n s g e n e r a t e d by t h e P l a n n i n g
Company t h r o u g h PSG, s u c h s t o c k o p t i o n s h a l l
represent a 1.3% equity ownership position
i n PSG u p t o a maximum o f $ 8 , 0 0 0 , 0 0 0 a n n u a l
g r o s s c o m m i s s i o n s r ~ ? f l e c t i n ga n e q u i t y
o w n e r s h i ? p o s i t i o n i n PSG o f 1 0 . 4 3 ; t h e
a n n u a l g r o s s commi:;sions g e n e r a t e d t h r o u g h
PSG s h a l l b e d e t e r m i n e d o n a n a n n u a l b a s i s ,
e n d i n g J u n e 30 of e a c h y e a r a n d t h e e x a c t
number o f s h a r e s s u b j e c t t o t h e o p t i o n s h a l l
be d e t e r m i n e d b a s e d upon t h e a v e r a g e a n n u a l
g r o s s c o m m i s s i o n s g e n e r a t e d by P l a n n i n g
Company f o r t h e t h r e e y e a r s e n d i n g J u n e 3 0 ,
1988, June 30, 1989 and June 30, 1990.
2.
Option P r i c e and E x e r c i s a b i l i t y .
The o p t i o n p r i c e of
t h e o p t i o n e d s h a r e s s h a l l be t h e par v a l u e of s u c h s h a r e s ( 8 . 0 5 per
share).
The o p t i o n s h a l l be e x e r c i s a b l e i m m e d i a t e l y upon g r a n t o f
t h e o p t i o n , b u t t h e i s s u e d s h a r e s s h a l l be s u b j e c t t o t h e f o r f e i t u r e
provisions l a t e r described a s well a s t o the adjustment i n the
number o f o p t i o n e d s h a r e s a s a r e s u l t o f a n n u a l g r o s s c o m m i s s i o n
f iguces.
3.
Vestinq Schedule.
The e x e r c i s e d s h a r e s s h a l l be
t h i r t y ( 3 0 % ) v e s t e d as of J u n e 30. 1988, a n d t h e v e s t e d p o c t i o n of
s u c h s h a r e s s h a l l i n c r e a s e by t e n ( 1 0 ) p e r c e n t a g e p o i n t s e a c h y e a r
t h r o u g h J u n e 3 0 . 1 9 9 5 , a t w h i c h p o i n t o n e h u n d r e d ( 1 0 0 % ) p e r c e n t of
t h e e x e r c i s e d s h a r e s s h a l l be v e s t e d ; however, i n t h e e v e n t of a
s a l e o f t h e Company o r a p u b l i c o f f e r i n g . a l l e x e r c i s e d s h a r e s s h a l l
be f u l l y v e s t e d .
4.
F o r f e i t u r e and Riqht of F i r s t R e f u s a l .
I n the event
t h e a f f i l i a t i o n o f P l a n n i n g Company w i t h PSG t e r m i n a t e s f o r a n y
r e a s o n . o r i f Kauffman t e r m i n a t e s h i s r e l a t i o n s h i p w i t h P l a n n i n g
Company f o r a n y r e a s o n , t h e o p t i o n s h a l l b e c o m e n u l l a n d v o i d , a n d
a l l non-vested s h a r e s s h a l l immediately be f o r f e i t e d ; t h e v e s t e d
s h a r e s s h a l l b e s u b j e c t t o r e p u r c h a s e b y TFG o n t e r m s c o r r e s p o n d i n g
t o t h o s e i n t h e o p t i o n s i n f a v o r of c e r t a i n of PSG's o t h e c
planners.
Any v e s t e d s h a r e s s h a l l a l s o b e s u b j e c t t o a r i g h t o f
f i r s t r e f u s a l i n f a v o r o f TFG p r i o r t o s a l e .
5.
Related Matters.
TFG a n d PSG a c k n o w l r d g e t h a t c h i s
A g r e e m e n t i s b e i n g e n t e r e d i n t o i n e x c h a n g e f o r t h e s e r v i c e s and
b e n e f i t s t o b e r e n d e r e d b y K a u f f m a n . i n d i v i d u a l l y , a n d PSG a n d TFG
a g r e e t o c o o p e r a t e and a s s i s t Kauffman t o t h e e x t e n t n e c e s s a r y s u c h
c h a t t h e o p t i o n and ownership b e n e f i t s d e s c r i b e d h e r e i n s h a l l i n u r e
t o t h e b e n e f i t of Kauffman, i n d i v i d u a l l y . r a t h e r t h a n t o Planni-nq
Company.
6.
Formal Option Aqreement.
The p a r t i e s a g r e e t h a t . a s
s o o n a s may b e p r a c t i c a l s u b s e q u e n t t o t h e e x e c u t i o n o f t h i s
Agreement, t h e p a r t i e s s h a l l e x e c u t e a more f o r m a l o p t i o n agreement
incorporating the points s e t forth herein. a s well a s other
p r o v i s i o n s which a r e customary and a p p r o p r i a t e w i t h r e s p e c t t o
arrangements of t h i s n a t u r e .
IN WITNESS WHEREOF, t h e p a r t i e s h e r e t o h a v e e x e c u t e d t h i s
Agreement t h e d a y and y e a r f i r s t above w r i t t e n .
THE FINANCIAL GROUP. INC.

By:
[ S i g n a t u r e s Continued on Next Page]
-2-
C U S H I N&
G MORRIS
ATTORNEYS
AT LAW
UU PEACHTREE CENTER CAIN TOWER

229 PEACHTREE STREET N E
ATLANTA, GEORGIA 30303

TELEPHONE
404 521~2323
W HAMPTON MORRIS
CHARLES M CUSHING. JR
KEVIN R ARMBRUSTER
ROY M JONES
LILA L NEWBERRY
May
5,
1987
TELECOPIER
656-9865
Mr. William H. Keogler, Jr.

The Financial Group. Inc.
Suite 200
200 Galleria Parkway
Atlanta, Georgia 30339
Re:
Bob Kauffman Asreement
Dear Bill:
Enclosed please find the above-referenced agreement, as
amended to reflect Bob's company as the beneficiary of the stock
option. rather than Bob, individually. I understand that, except
for this change. Bob had no comments on the draft of the agreement
presented to him last week.
Please let me know if any further modifications are needed.
With best wishes
--
Charles M. Cushing, Jr.
CMCjr:dsk
Enclosure(s)
cc: Mr. Chris
19885
S.
Guerin (w/encls.)
STATE OF GEORGIA
COUNTY OF COBB
THE FINANCIAL GROUP, INC.
STOCK OPTION AND OWNERSHIP AGREEMENT
day of May,
This Agreement, made and entered into this
1987, by and between THE FINANCIAL'GROUP, INC., a Georgia
corporation ("TFG"), THE PLANNER'S SECURITIES GROUP, INC., a Georgia
corporation ("PSG"), FINANCIAL MANAGEMENT GROUP, LTD., a
Pennsylvania
("Planning Company") and ROBERT E.
KAUFFMAN, a resident of Pennsylvania ("Kauffman").
WHEREAS, TFG owns a controlling interest in PSG, a

registered broker-dealer; and
WHEREAS, the parties desire that Planning Company become
affiliated with PSG and that, in connection therewith, Planning
Company be granted certain stock option and ownership rights in PSG;
NOW, THEREFORE, for and in consideration of the premises
and mutual promises herein contained, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:
1.
Affiliation with PSG and Option of Shares. Planning
Company shall become affiliated with PSG as soon as practicable and
PSG shall accommodate and expedite such affiliation. It is
anticipated that, assuming planning Company generates average annual
gross commissions through PSG of at least Four Million
($4,000,000.00) Dollars, Planning Company would have the opportunity
to own a minimum of five and two-tenths (5.2%) percent of the equity
of PSG, to this end, upon the affiliation of Planning Company with
PSG; TFG shall grant an option to Planning Company for such number
of common shares of PSG as determined below:
For each $1,000,000 ,of annual gross
commissions generated by Planning Company
through PSG, such stock option shall
represent a 1.3% equity ownership position
in PSG up to a maximum of $8,000,000 annual
gross commissions reflecting an equity
ownership position in PSG of 10.4%; the
annual gross commissions generated through
PSG shall be determined on an annual basis,
ending June 30 of each year and the exact
number of shares subject to the option shall
be determined based upon the average annual
g r o s s c o m m i s s i o n s g e n e r a t e d by P l a n n i n g
Company f o r t h e t h r e e y e a r s e n d i n g J u n e 30,
1 9 8 8 , J u n e 30, 1 9 8 9 and J u n e 30, 1 9 9 0 .
i
2.
O ption P r i c e and E x e r c i s a b i l i t y .
The o p t i o n p r i c e of
t h e o p t i o n e d s h a r e s s h a l l be t h e p a r v a l u e o f s u c h s h a r e s ( 5 . 0 5 p e r
s h a r e ) . The o p t i o n s h a l l be e x e r c i s a b l e i m m e d i a t e l y upon g r a n t of
t h e o p t i o n , b u t t h e i s s u e d s h a r e s s h a l l be s u b j e c t t o t h e f o r f e i t u r e
provisions l a t e r described a s w e l l a s t o t h e adjustment i n the
number o f o p t i o n e d s h a r e s a s a r e s u l t o f a n n u a l g r o s s commission
figures.
3.
V e s t i n q S c h e d u l e . The e x e r c i s e d s h a r e s s h a l l be
t h i r t y ( 3 0 % ) p e r c e n t v e s t e d a s o f J u n e 30, 1 9 8 8 , and t h e v e s t e d
p o r t i o n o f s u c h s h a r e s s h a l l i n c r e a s e by t e n ( 1 0 ) p e r c e n t a g e p o i n t s
e a c h y e a r t h r o u g h J u n e 3 0 , 1 9 9 5 , a t which p o i n t o n e h u n d r e d ( 1 0 0 % )
p e r c e n t o f t h e e x e r c i s e d s h a r e s s h a l l be v e s t e d ; however, i n t h e
e v e n t o f a s a l e o f t h e Company o r a p u b l i c o f f e r i n g , a l l e x e r c i s e d
s h a r e s s h a l l be f u l l y v e s t e d .
4.
F o r f e i t u r e and R i g h t o f F i r s t R e f u s a l .
In the event
t h e a f f i l i a t i o n o f P l a n n i n q Company w i t h PSG t e r m i n a t e s f o r a n y
r e a s o n , o r i f Kauffman t e r m i n a t e s h i s r e l a t i o n s h i p w i t h p l a n n i n g
Company f o r a n y r e a s o n , t h e o p t i o n s h a l l become n u l l a n d v o i d , a n d
a l l n o n - v e s t e d s h a r e s s h a l l i m m e d i a t e l y be f o r f e i t e d ; t h e v e s t e d
s h a r e s s h a l l be s u b j e c t t o r e p u r c h a s e by TFG on terms c o r r e s p o n d i n g
t o t h o s e i n t h e o p t i o n s i n f a v o r o f c e r t a i n o f PSG1s o t h e r
planners.
Any v e s t e d s h a r e s s h a l l a l s o b e s u b j e c t t o a r i g h t o f
f i r s t r e f u s a l i n f a v o r o f TFG p r i o r t o s a l e .
5.
F o r m a l O p t i o n Agreement.
The p a r t i e s a g r e e t h a t , a s
s o o n a s may b e p r a c t i c a l s u b s e q u e n t t o t h e e x e c u t i o n o f t h i s
~ g r e e m e n t , - t h ep a r t i e s s h a l l e x e c u t e a more f o r m a l o p t i o n a g r e e m e n t
incorporating the points s e t f o r t h herein, a s well a s other
p r o v i s i o n s which a r e c u s t o m a r y and a p p r o p r i a t e w i t h r e s p e c t t o
arrangements of t h i s nature.
I N WITNESS WHEREOF, t h e p a r t i e s h e r e t o h a v e e x e c u t e d t h i s
Agreement t h e d a y and y e a r f i r s t a b o v e w r i t t e n .
THE FINANCIAL GROUP, I N C .

By:
THE PLANNER'S SECURITIES GROUP,
INC.
By:
( s i g n a t u r e s c o n t i n u e d on f o l l o w i n g p a g e . )

By:
(SEAL)
ROBERT E. KAUFF'YAN
R.E. Icsiufiman
NOTES OF STOCK OPTION
A.
B i l l Koegler w i l l supply an adden3.m to point number one

changing the words gsslrminq and
The new paragraph
w i l l read:
m.
is anticipated t h a t the PlanC m p n y w i l l generate

average annual gross unmnissions through PSG of a t least
four million
($4,000,000)
and Planning Oorrrpany w i l l
receive a mhimun~5.2 percent of t h e equity of PSG i n any
event, to this end....
It
B.
Koegler has represented that this is non-dilutable stock

and that FIG'S interest w i l l not change unless
Bill
pnxluce aver 4 million a yea. average annual

d s s i o n s over the next three y w , i n which case our
interest w i l l increase.
1.
We
2.
FMG
3.
Bab M i m a n leaves Planning Ccgnpany f o r any reason, i n

which case the stock option ceases and only vested shares
a t that time are owned by FtG.
leaves PSG w i t h i n seven years, in which case a vest%

schedule exists reducing our interest.
IT S H O U I D W 3 N O T m ' M A T E ' S G W I L L N O T O O ~ ~ F I G S E P A R A T E
FROM ITS INVOLW l I M XAUFFMAN.
'IHEIR REASONS ARE ARE
m m s:
Compact Disc Project Managers.

Compact Disc Manufacturers.
May 21, 1990

Stan J. Caterbone
ADVANCED MEDIA GROUP, LTD.
Lancaster, PA 17601
Dear Stan:
As per our recent discussions concerning
our CD-ROM division, it is my intention to
allow the ADVANCED MEDIA GROUP, LTD. to
continue
servicing
these
clients
and
prospects.
There may be finder fees
associated with any or all of these business
activities
payable
to
American
Helix
Technology Corporation.
The Advanced Media Group, LTD., will also
have the opportunity to communicate to these
clients and prospects that The Advanced Media
Group, LTD., will continue the current CD-ROM
business activities.
President
Investigators
tie Guerin's
son to seized
-
Inlelrgencer Journal 5tan
The federal investigation into

James H. Guerinfor violation of
U.S. export laws has expanded to
include his son, James H. Guerin
J r.
Federal investigators confirmed this week that a t least two
shipments of military-grade
electronic components and assorted military support equlp
ment linked to the younger Guerin's Harrisburg-based company
were se~zedby U.S.Customsofflcials at the Port of Philadelphia
during the first two weeks of November.
Speaking on the condition that
their names and agencles not be
used, the investigators said the
improperly documented s h ~ p
ments were bound for Smgapore,
with subsequent resale scheduled to "several embargoed
(Third World) countries that wlll
remain confidentla1 at this
time."
,The subsequent re-distribution
in Singapore was being handled
by the same unnamed person
who handled illegal arms and
military electronics shipments
for the elder Guer~nand his former company, lnternatlonal Slgnal & Control Corp., now Ferranti International Signal PLC, federalinvestigators said.
Investigators declined to specify exactly what they. seized, or
the size of the shipments.
"Let's just say what we seized
is a serious violation of U.S.,
law," said one investigator.
"Young Mr. Guerin did not,;nor
could have he, legally obta~ned
the necessary Department of
State or Commerce licenses
w e d toexport this material."
Thernatertal seued originated
from the younger6tlerin's company, Advent Marketing International Inc., 2405 ParkDrive, Suite
203. The company is located ,in
the Commerce Park industrial
center on the outskirts of Harrisburg.
The company's original adname
dress listed on its fict~t~ous
filing was the Holiday Inn, Room
117, Liddle Road, Harrisburg.
Advent was registered w ~ t hthe
'
-2
o^mnr.l.
FERRBNTI INTERNBTIONAL, PLC, ,
- Stan
Published l i e s a b u t
Caterbane on
Septem@r 4, 1987
regarding fabricafed
crlninal chawes that
w r e filed bj the ilanheim
I o n s h i Pollee Department,
Distric! Justice b r a y Norton,
the L+ncqter District,Attorney,
and Plstrlct Justice Rlchard Rpeser.
SW 618 IIPISIAMIG
- Fomlosed
on
- )lamer
Uorked with Jim
the residence
on t k
of Stan Caterbone Lancaster k t e
in lbvember '87. Uanageynt Bond
Issue in '87.
Stan Caterbone
J
o
h
Depatto
told
that "Guerin i s in
trouble" in Nov '87.
I St
MIID W
l CON, INC.,
- Filed
suit against
J u e s Christian.
- Sold ISC Stock to
Stan Caterbane
Stan Caterbane called

Gib Arrrtmng in July '87
pleading f o r he1 he
sald k uould c a b the
PR Attorney General's
Office.
- Stan
Caterbane
atten ted to
hu
CARL JMOBSOH
WMAli Ck#K
I
- Carl Jacobson uas
rve,&cu*tnts
o Glb Anstrong
in the PB Ca i t o l
building in
1987 -- Gib ran
away!!
scheduled to meet
uith Stan Caterbone
and Larm Resch on
June 23 1987 a t
FNG ~ t d . , "Ue had
to /IY car1 out of
the country early
~ & ~Said ~
DETECTIVE BmM
discussed business
and
personal
matters
daily.
COIPIOMIMM BIVa(
- Stan Caterbane
MRRY
- Judgement
of $191 Hillion
iY Farranti,
Int.
Caterbane.
~ JOSEPH
f 'AODB
Illegally rewsseed
Stam Caterbane plane
with f i l e s on board.
- Discuss rescue
- Stan Caterbone
discussed business
and
p r s o nbasls.
at.utters
on dally
oc keration
n con. for United
- for
Indicted & Convicted
- Revieu
financials
- Attorney
Pennsylvania
UEDIECH Scandel.
Represented Uillian
of
C
k
m
Con Stan
- Partner
uith Larm
General's
us. J u e s Guerin
Caterbane a i l e r s
Rpsch in Military
- Guerin's brotkr-in-lau . Clark
Office.
~n $2 mlll~on ay
$17 Million em&zzled Loglstlcs
dispute/ htorfion?
Stan Caterbone had

2 conversations in '87.
Hind iY Stan Caterbone on

July 4, 1987 to fly from
Caw Bay Coyt Air r t to
Lancaster hulalion
resue
f i l e s fmm a i r lane of Stan
Cate~bone, tha! uas illegalyn
n w s s e d a t 9:3B an Julu
2., .
19R1
..
. .
...
lpaynent was
:h Bank.
h a d knlhue died in a
wsterious a i r accident
a feu u ~ e blater, as told
to Stan Cate~boneh Dave
Austin of t k C ~ R R i r ~ o r t
on or a u t July 20, 987.
Stan Caterbane had found

that 0fficers.of FMG had
broken into hls office
and forged cormrate
stock certificates.
- Stan Caterbone w n t
to the office of Joe
Rada on July 1, 1987
uith a l l corresmnding
f i l e s and d o c w n t s
regarding:
from U.S. Gov't.
Stan Caterbone
discusses allegations
a n d i w r o p ~ i e t i r sand
misconduct of J w s
Guerin and ISC, uith
specifics to D.0.D
contracting activities
HWARD EISSlEA
Stan Caterbone tried to

twuart any f u t u n call
br d ~ n a n d ~ na s219,888 - Investigator uith
Guta~nerfee.
Pennsylvania
Securl t i e s
Financial Mana enent
Stan Caterbone never
Couission.
Groug ~ t d .
knew uhi~the leetin
the bigitai MovieA,
Uas scheduled, or i f - Conducted 5 Hour
Lancaster Auiation,
there uas any agenda.
lleeting uith Stan
CPnmnulealth Bank,
Caterbone on tk
ISC 1 Guerin, and
29th of Septebpr,
other u t t e n .
1987.
On Jul 4 Stan Caterbone
Stan Caterbone
had carled Joe Roda after
discussed the
learning of t k nposession
Guerin i ISC
" Stan ou have to g u t
related issues
fabricaring these lies and
in some detail.
allegationsn. -- Joe Rada
Recorded Ibrtnno
(KIG)
Engineering, Inc.
Fowr h h t i n g
Rep for United
them Con Office, in
Uashington, D.C.,
Name
$0.50
$5.00
Bavera. J e r r y
Braverman, Richard
Caterbone, Stanley
Clark, Glenn
Coho, T h e b e 8 .
H a r t l e t t , Michael
Kauffman, Robert
Kennedy. David
Long. Robert
Loss, Alan
Loss. Nathan
Ncnell, Linda
Oischger, Donald E.
Paneros, Pete
Podlasek, Richard
Radcliffe. Harry
Ray, Kenneth
Robertson, Sc ot t D.
Roesser, Steve
Royer, Carolyn D
Trump, Richard C.
Trump, Richard L.
Umiker , Nora A.
Volpe. Gary
Volpe, Richard J .
40000
40000
60000
'
Total Shares
Total Capital
Raised
Total
Shares
140000
65000
35000
$70.000~$162,500 $122.500
Offering Memorandum
45000
35000
5500
245500
$27,500 $382,500
40000
G
j($
-Capital Raised
54 million
100 million
*tal
2.7 million
5.0 million
.5 million
million
1.0 million
- 5 million
3 . o million
6.0 million
4. o million
camnksions
lbmiqs
-Affiliate
-mtal
GKSS
- m a e
Revenue
less Orsmnissions
.3
.76 million
1.52 million
'
llion
N/A
SALES FORCE
-=w-'=
37 P==ns
50 Persons
48 plSotl.5
--Hires
10 persons
14 persons
14 persons
-Retention
90%
85%
95%
m N C I A L S (All MlPRberS
in Millions of Dollars)
Revenue
.76
1.8
N/A
--Retained Profits
.21
-501
N/A
--Return On FqUity
70%
66.6 %
N/A
--Capital Base
.300
-785
N/A
-Book Value Begin/Year
.300
.725
.30O-
--Book V d l u e / S h a r e
1.60
3.05
4.00
-~ook value w/Year
-480
1.526
N/A
-Value EQr Share

(at 3.5 x fsook)
$5.60
$10.67
$14.00
$10.00
$13.33
$17.00
-Net
Traditional
-
(at 1
*.sham?
>;
Total Grms R e J e r f ~ e )
-15-
REGISTRATION NOT TRANSFERABLE

U N I T E D STATESOF AMERICA
DEPARTMENT OF TRANSPORTATION - FEDERAL A V I A T I O N ADMINISTRATION
CERTIFICATE OF AIRCRAFT REGISTRATION

NATIONALITY AND
REGISTRATIONMARKS
27623
AIRCRAFT
SERIALNO
Thllcertlflcate
must b. ~n,he mr
cr.tt Wh." 0p.r.l.d
3 1-7812065
MANUFACTURER AND MANUFACTURER'S DESIGNATION OF AIRCRAFT
PIPER
PA-31-325
This car,l~lcexr a
,lS".d
$0. ras,,trs
,,on purposes only

and I, nor
rsrtl~
IC.1.
O f ,,,la
The Fadarsl Aule
,ton Admlnlslr.uon
-,"
CATERBONE STANLEY J
I 1755 ORE60N PIKE
s LANCASTER PA 1 7 6 0 1
INDIVIDUAL
.
- -
I( IS ~ ~ r t i that
f ~ ~&he
d ahor. d e u r i b ~ ds~rcrafth u k m .nured on the resls-r of ihr Feder.1
accur&nce with the Convention on
~ " , . f ~ " " *dminu,..,,on.
united stsu.
A~.,,C.,
rllb the ~.d.nl AVI.GIO~ *a of
~ ~ t . ~ . t , ~ CIV,,
, , d A V , . ~ ~ Odated
~
~~~~~k~
7. 1914.
1858, .nd rqul.liun. *surd thereunder
US. Daplrtmoni
DATE OF ISSUE
JULY 22s
198
...
...
..
..
0
E
0
a
z
..
..
11 1 1
U.S. Department
of Trsnrportslion
F&wl Aviation
AdminisIntion
MI*. ~ . ~ , t ) n c v~ e r o n a u t ~canter
ul
P O . Box 15504
o k t a b m . c i w . OK 73116
Offac#alBus#nssl
pen.lty for Prwal. Ur. $300
AC Form 806C-3 17831
27623
ro:
CATERBONE STANLEY J
1 7 5 5 ORE60N PIKE
UNCASTER PA 1 7 6 0 1
Advisory, Inc.
-1*"K,.'
Y.*LI*I*I
'"OW L I D
PRESlDENT
June 11, 1987
Mr. Charles Smith

Lancaster Aviation, Inc.
Lancaster Municipal Airport
P.O. Box.375
Lititz, PA 17543
Dear Chuck:
I would like to explain to you the recent activities of Lancaster
Aviation and the reasons for which I have been very frustrated
with the services.
A few months ago my business activities required that I be
in different locations every other day.
These activities
are worth millions! of dollars and entail consulting work inI began using Lancaster
volving international firms and people.
Aviation to charter my flights. I was very surprised to find
no credit report or any formal application necessary to fly!
I even questioned John Steuernagle about this.
I was very
pleased with your charter service, especially the service
of John, Dick and Mike.
They service your clients very well.
Because of my contacts with people in aviation, I put feelers
out for an airplane.
I was called by a person in Harrisburg
who provided a corporate plane that was for sale.
I had the plane (Cessna 402 B- 1973) flown to Lancaster for
They offered me a no
a test flight so that I could see it.
cash deal and said they would give me a note.
The plane was
old, but would have been adequate for my needs'.
Then, your people saw me looking at the plane.
Everyone said
it was a piece of junk and said I was ccazy -- especially Pete
Wolf sen.
I sald rlne, but, I could qet into the plane without
any financing difficulties and the plane would suit my needs.
I said,"you have ten days to find me a better deal."
June 11, 1987

page 2
Mr. Charles Smith
In
the meantime, I scheduled a Saturday morning flight at

a.m. on May 30th to Cape May, where the movie is being
filmed of which I am Executive Producer. On Thursday evening
I found that I no longer needed the flight.
I was out and
ran into Pete Wolfsen.
1 said, "Pete, I have to cancel my
flight, could you please tell them I won't need it?"
His
response was "I will be too busy!"
Here is a salesman that
said I was crazy for not buying a plane from him, in which
he would receive a 4% to 8% commission, telling me he was
.too busy for a 15 minute communication to people he talks
to everyday in his office!
9:00
That is just ridiculous and

of Lancaster Aviation!!
it made
a very bad
impression
Then Pete finds me a nice deal that I was excited about.

He tells me that he can finance the plane in "48 hours"!! So I
only worry about closing costs and 20%. Then I get into hassles
because he can't get the financing he said he can get.
Then,
you cut me, off of, your charter service when all invoices are
net 30 days.
I
--
My. financial statements are very accurate and are on the conservative approach if any.
If you don't believe me, visit
my office at 1755 Oregon Pike.
egretf fully yours,
,,
,,
president
SJC: lmk
cc: P. Wolfsen
J. Steuernagle
D. Loose
FBI links Guerin to S. African a1

Thomas L. Flan
~ m e l w c ed3sran
r
PHILADELPHIA- James H. ~ u e r i n
used a bogus company headquartered in
a New York post office box to send numerous shivments of embarroed military hardware to South Africa and circulate money used to mastermind a $1
billion fraud, an FBI agent testified
Wednesdar.
Bin, Guerin's former Lancaster defenselelectronics company, International Signal & Control Corp., now Ferranti International PLC.
The first accounts of Guerin's alleged
illegal dealings with South Africa were
Agent tells court ISC founder set up phony company

to trade illegal military hardware, conduct major hu4
reported in the Intellingencer Journal in

October 1989, but Wednesday was the
first time the government officially said
that its investigation had confirmed activities there.
This was the agent's second time on
the stand in as many days as testimony
continued before federal Judge Thomas
N. O'Neill over a disvuted $2.75 million
em~lovment settlement
contract.
he-~
..--.--..
-tween-Guerin and his former top attorney a t ISC, William A. Clark.
This Avril, federal oroseeutors froze
more than $2 mill~ona ~ e g r d l ystrll owid
Clark by Guerin toend Clark's five-year
tenure at ISC last April.
~
~~
In the order freezing the cash, federal

prosecutors said the money came from
a criminal enterprise - ISC and Guerin's personal holding company, Parent
Industries Inc. -and was subject to forfeiture under the pre-indictment provisions of the Racketeer Influenced Corrupt Organization Act, or RICO statUtes. The government said it wanted to
protect disbursement of the money
should the government prevail in its expetted prosecution of Guerin on a number of criminal charges and lay claim to
it, according to court documents.
The two-day hearing was held to allow
the U.S. Attorney to present evidence
supporting a request asking O'Neil

extend the freeze for an additiona
days whilethegovernment continue:
case against Guerin.
The money was escrowed by the I
caster County courts when a legal ha
erupted over the balance owed Clz
with Guerin contending Clark used
tortion and coercioa to obtain the agl
ment.
Tuesday, the Assistant U.S. Rober
Goldman said his office believes C1,
did use "blackmail" to secure
agreement, and that Clark knew
proceeds bad been derived from a c r
inal enterprise due to his former PI
,-".
..
TIME
S Y S T E M S
'
MOM
YEAR
1q87
-m
S
V)
I
I
k
TS 4101
RV ~ 8 5
orsas TME &s
INC
PRNT~
NUS
May 2 9 , 1 9 8 7
Stan Caterbone
554 B e r k l e y Avenue
S t o n e Harbor, N . J .
Mr.
Dear S t a n :
I'm e n c l o s i n g a f i r s t d r a f t of t h e s c r e e n p l a y , c o m p l e t e w i t h
t y p o s and a c o u p l e o f o t h e r e r r o r s . ( F o r i n s t a n c e , Kennie
Queens i s a l s o Kenny P e t e r s o n . )
This
well
very
talk
s h o u l d g i v e you s u f f i c i e n t t i m e t o s t u d y t h e s c r i p t as
I t would be
a s t h e b u d g e t , which I ' m a l s o e n c l o s i n g .
h e l p f u l i f you c o u l d have n o t e s p r e p a r e d which w e c a n
a b o u t when B a r b a r a and I a r e i n N e w J e r s e y n e x t week.
@
rlene
avidson
4334 STERN A X . . SHERMAN OAKS. CA91423

[a181 995-3417
ROBERT M. LAM
Chairman
COMMONWEALTH OF PENNSYWANIA
ROBERT P. CASEY
Governor
NANCY L. DIANA
Secretary
ELIOTT KLElN
Chief Counsel
Pennsylvania Securities Commlsslon

333 Market Street
Telephone: (717) 787-8061
November 25, 1987

Conestoga, PA 17516
RE:

Dear Mr. Caterbone:

With reference to our telephone conversation on November 23,
1987, I feel that we suffered from a lack of communication
and to avoid any misunderstanding in the future, I am
requesting that you submit your complaint in writing.
'
O C i
Enclosed is the Commission's

I
standard complaint form which
you may use or use as a guide.
The Pennsylvania Securities Commission does conscientiously
review and take appropriate action relative to all complaints
pertaining to its mandated purpose.
Yours truly,
Hovard L. Eissler
Securities Investigator
HLE :sec
Enclosure
OFFICES
,
1109 STATE OFFICE BUILDING, PHILADELPHIA, PA 19130-4088;Telephone 215-560-21

806 STATE OFFICE BUILDING, PITTSBURGH, PA 15222-1210; Telephone 472-565-5082
'73
Guerin:
L l s W amonb. the 10 pcaple
Gucrin could recall i n his tcnti.

m o w war WGAL-TV llewr an.
chormanKeith Martm.
In the text of the deposition.
Cuelin .%id that Msnin worked
as a consultant for ISC handlirlg
e x e c u t i ~ i~n - s e n i ~ ceducation
sndgiving~lasses~n
howtodeal
with the media.
Cuerin funhcrtcstilied art in
w a u i v e o his assrgnments by
f m e r head of communications
.
I 1%. Michael Smoglor. and
U a t Msnin"hand1ed the merger
wiIh Fernanti in Ihe loeai area.
clalm Marlin almngly denied
TYesdav"aht
Martin,& lelephane inter.
view. nand ho w o r m as a con.
sYllant m several 1%-barked,
mmmunit~.otienled mjeetrfur
the Lanraater champer of
memeand Industry and theun~ted way ."era Ihm-year petid,
corn.
rerelvingaboutf10.rminfcesfo0
i s m i a m e n andpmductionex. hEnise.
and did sa with the apDm"~l"fwP.*I.
Cup& claimed Clark's t h a t

lo dlselose the anaitive conVBCtlio~~Lnlgationissues ~ 8 t h
LO would nix Cuetin's
buyback of scvora
~di~k@~lmmFerranfi
The buyback. which fell apan
tm mama auler Ihan Clark inLludcd I%
Teehnologiea h d .
h e ISC wbsldiary Ferranti
chLmrineluded Up g m s s l y o ~ e ~ .
"slued Pakislan eontracts alk g 4 4 ncgotlakl by Haig and
hmcr Laneester-based ESI, the
Z m r Y C?erln allegedly used
IP
milrun. electnnics to
,SouIhhltie..
N s ineluded wilh Ihe depositim were eome la) pages of exbibits and m o t i o ~ liled on
allrk'rhhalf
%%p%
~ C I \ I \ ~~Yv H i u i H
HUU>II\Ib t I I \ I A I \ I L t A t i t N L Y
Homeowners Emergency Mortgage Assistance Program
2101 North F r o n t Strect

P.O. Box 15628
Harrisburg, Pennsylvania 17105-5628
71 7-780-3957
RD 1
Conestoga, PA 17516
Re:
NOTICE OF DECISION OF HEARING EXAMINER
Dear Mr. Caterbone:

On January 26, 1988, Pennsylvania Housing Finance Agency issued a
Notice of Adverse Action and a denial of your request for a mortgage
assistance loan pursuant to the provisions of Act 91 of 1983. On
February 10, 1988, you requested an appeal from the decision of the
Agency and an opportunity for a hearing to contest the Agency's denial
of a mortgage assistance loan.
A hearing was held on March 22, 1988,at which time you had an
opportunity to discuss your situation before a Hearing Examiner. The
Hearing Examiner's decision is as follows:
The Appellant's application for a emergency mortgage assistance
loan was initially denied on the following grounds:
1.
Mortgagor is not suffering financial hardship due to circumstances beyond mortgagor's control: Mortgagor was fired from
job. (Act 91, Section 404-C(A))
During the course of

established:
the appeal hearing, the following facts were
According to a notice of determination dated November 9, 1987, the

Bureau of Employment Securlty of the Pennsylvania Department of Labor
and Industry found the Appellant, Stanley J. Caterbone, ineligible for
unemployment compensation because he was an unemployed businessman, not
an unemployed worker. The Appellant appealed the decision.
In the appeal decision of January 7, 1988, the referee determined
that the Appellant was ineligible for unemployment compensation because
he was an unemployed businessman, not an unemployed worker, and had
been terminated on June 30, 1986 for willful misconduct. The referee's
decision indicates that the other two officers voted to terminate the
Appellant because he entered his employer's premises between 12:OO a.m.
and 8:00 a.m. on July 1, 1987, and removed various corporate documents,
records, equipment, files, and checkbooks without authorization.
During the course of the hearing, the Appellant explained that he
had been forced out of Financial Management Group Limited, a company in
which he served as Executive Vice-President and owns 20% of the stock,
,.,
_
, , , r S I I ~ L~U~~ ~
C ne musc provlde
documentary evidence within 25 days in order to refute the Bureau of
Employment Security's determination of willful misconduct. The Appellant indicated that he had appealed this determination and would
provide evidence supportive of his position.
Subsequent to the appeal hearing, the Appellant's attorney,

Michael McDonald, presented evidence that the appellant has been
suffering from a bipolar mood disorder. This psychiatric illness,
which is genetic in character, became severe during the summer of 1987
and later resulted in the hospitalization of the Appellant in September, 1987. His family has a hiscory of psychiatric illness. The
debilitating and disorienting impact of this illness appears to have
led to the appellant's dismissal from employment.
In reference to the termination, it does not appear that the
Bureau of Labor Security was aware of the Appellant's mental condition
when it rendered the determination of willful conduct.
Mr. Caterbone explained, moreover, that he was currently negotiating a settlement with the company. He expects to receive approximately
$200,000 for his interests.
Now the $1,066.97 monthly mortgage payment is delinquent from
July, 1987, through March, 1988, in the approximate amount of $9,602.
According to his testimony, the Appellant plans to reestablish his
earning power by entering into the real estate business. In turn, the
hearing examiner advised the Appellant to provide evidence within 25
days that there is a reasonable prospect of resumption of full mortgage
payments within thirty-six (36) months and paying the mortgage by
maturity. (Act 91, Section 404-c(A))
Subsequent to the hearing, the Appellant's attorney advised the
hearing examiner that the negotiations for the liquidation of the stock
could take anywhere from six (6) months to twelve (12) months.
The Appellant reported gross income of $12,039 in 1984, $11,854 in
1985, and $30,531 in 1986. Mr. Caterbone has not generated an income
since his termination from employment on June 30, 1987.
The aforementioned findings of fact indicate that the termination
of the Appellant's employment, attendant loss of income, and resultant
mortgage default were precipitated by a psychiatric disorder which has
a genetic character. Moreover, it does not appear as though the Bureau
of Employment Security was aware of his illness when the determination
of willful misconduct was rendered. In this context, the Mortgagor is
therefore suffering from financial hardship due to circumstances beyond
the Mortgagor's control. (Act 91, Section 404-C(A))
On the other hand, the appellant's mental health problems and
current income-generating capacity raise questions concerning the
"reasonable prospect", especially in view of the relatively high
mortgage payment ($1,067). Therefore, this situation should be reevaluated.
It is hereby ordered that the Pennsylvania Housing Finance Agency,

Homeowner's
Emergency
Mortgage Assistance Program's decision of
January 26, 1988 is remanded with instructions to reevaluate the
application on the reasonable prospect of mortgagor resuming full
mortgage payments within thirty-six (36) months and paying the mortgage
by maturitv. (Act 9 1 S - r t i n - A n n - * / % \ \
It is hereby ordered that the Pennsylvania Housing Finance Agency,

Homeowner's
Emergency
Mortgage Assistance Program's decision of
January 26, 1988 is remanded with instructions to reevaluate the
application on the reasonable prospect of mortgagor resuming full
mortgage payments within thirty-six (36) months and paying the mortgage
by maturity. (Act 91, Section 404-C(A))
Hearing ~xakin&;
cc:
file
decision file
1 THE MIGHTY YEW AND FIERCE COMPETITION ARE FORCING IT INTO HEW MARKET
1 '
here he is, sitting on the floor of

his office with three remote cantrols in his hand, listening to a
Beethoven symphony a t high volume.
He recorded the symphony from a
broadcast of a recent Vienna Philharmonic concert in Tokyo, and now he's
putting the tape to good use. As much
as he likes music, Akio Morita likes trying out new stereo gear even better.
Morita is 66, and the last flecks of
black long ago vanished from hi silver
hair. Although he's spending less time
these days in his cluttered, wood-paneled
cha~rman's office a t Sony Corp., it's
clear that Morita still provides much of
04 BUSlNtSS WEEKIJUNE 1 1987
the spark that has made the company

synonymous with the success of postwar
Japan: innovation, shrewd marketing,
and quality. As executives repeatedly
dash in for consultations, Morita patient
ly explains why one set of speakers he's
checking out doesn't quite have the Sony
sound.
Sony. The very name speaks volumes
about the company. It comes not from a
Japanese word that foreigners might
find difficult to pronounce, -but from
sonus, the k t i n word for sound, finetuned for Japanese tongues. The name
symbolizes the company's origins in its
pioneering tape recorders and transistor
radios. It also has come to signify tl

international orientation among so mar
mightily successful Japanese companie
Some 7046 of Sony's sales come fm
outside Japan.
VCtDe
Recently, though, Sor
has become one of the most visit& syr
bols of trouble in Japsn. Like other Ja:
anese companies in businesses rangin
from autos and steel to electronics m
computers, Sony's world has bee
turned upside down. The dramatic rir
of the yen has cramped its ability t
compete in export markets. Protectionic
sentiment is 'growing in the U. S. an
Europe. And foreign rivals are figbtin
-.
M V E R ST(
back like never before, Far East compet

itors, such as Taiwan and South Korea,
are exploiting their lower costs, and
U. S. and European companies are
achieving efficiency gains and improvements in quality.
The high yen-endaka in Japanese-is slamming the nation's exporters. two
ways. Foreign competitors with costs denominated in dollars or French francs
have more room to undercut Japanese
companies on prices, and a dollar's
worth of sales is worth less in yen. Measured in dollars, Sony's U.S. sales rose
24% last year. Measured in yen, they
were down 11%."The falling dollar has
produced a nearly 50% tax on us," complains Morita.
Overall, the numbers tell a disappointing story. Worldwide sales slipped 7% to
$8.2 billion, in the fiscal year that ended
last October, while earnings from operations fell a stunning 75%. Earnings d e
dined another 56% for the five months
ended in March from a year earlier.
Archrival Matsushita Electric Industrial
Co., by contrast, endured a more manageable 44% drop in operating earnings
last year.
For Sony, adaka is like a drought
that follows a plague of locusts. The
challenges facing Morita and his handpicked president, former opera singer
Norio Ohga, have become even more
daunting than they already were.
WA
aoa~
Competition in consumer
products s u d . Riwls that took about

two years to come up with their own
U.S.versions of the Walkman now re
spond to new Sony products in months.
And the rising quality of competitors'
products has narrowed the advantage
that once permitted the company to
CWER STORY
BUSINESS WEEKiJUNE 1.198765
As if that's not turmoil enough, Son

must now sweat out a trade skirmis
that could &sealate into a war. So f a
the company has avoided any seriou
damage from the cross-fire between Tc
ony Corp. has built its reputation
Raykay was inspired by Hideo's own
kyo and Washington. Its semiconductm
by staying uptodate in the con- experiences overseas, particularly
are not widely used in the computer
sumer electronic8 business. But while studying a t the University of
covered by the tariff imposed by Pres
a t Davis. He remembers viv- dent Reagan recently, and all of th,
the company might not be around today without help from a S00yearold idly the trouble he had 6nding and fur- Sony television models that would hav,
enterprise that is the single largest nishing an aparbnent 'The fist night,
been covered by the tariff are made u
shareholder in Sony.
I slept on an empty bed with no pillow San Diego. But the longer the U. S
Sony's benefsdor is Morita & Co., a or blanket I had to sleep with my mat trade account remains deeply in deficit
f a m i l y - 0 4 business that has been over me."
the greater the likelihood that Son!
brewing sake, the traditional Japanese
Hideo, who does not drink, always
could get pinched in the U. S. market
ricewine, under the brand name Neno- expected to work in the family sake which accounts for a third of its sales.
himatsu since the late 1600s. The corn . buainw. In keeping with tradition, he IMNIWOvlscnlcn The opportunities f01
pany, w h i i has 701 employees, is one
a retaliation-bent Congress to make mis
among a h w t of small regional sake
chief are legion. Even though Congresr
brewem in Japan. M&
& Co. alao
in April rejected a oneyear ban on tht
makes miso, a fermented soybean
ultrahigh-fidelity digital tape recorders
paste used in s o u p and sauces, and
recently introduced in Japan, legislaton
sholyu, or soy sauce. Under the maw
are likely to accomplish the same objec
agemeut of Kyueaemon Morita, the
tive by other means. Congress is daw
husinesa provided a comfortable life
dling over legislation to require that the
for hi son Akim and three other chilnew products be equipped with devices
dren in Nagoya, an industrial city 220
that prevent them from duplicating
mi. southwest of Tokyo.
tapes or records, a provision sought by
As the eldest son, Akim was expected
the recording industry. Richard L.
to take over Moritp & CJ.Instead, afSharp, president of C i u i t City Stores
ter World War 11, Moritn, then 25,
Inc., isn't expecting digital tape mathrew in his lot with business novices
chines to be in his stores for atlesst a
Masaru Ibuka and Tamon Maeda to
year, as Sony and other manufacturers
start Tokyo Tsushin Kogyo, or Tokyo
await a cle* reading on the legislation.
Despite Sony's woes, Morita is as eaTelecommunications Engineering Co.
Unable to get a bank loan for their
ger and enthusiastic as ever. He manstruggling company, the trio turned to
ages to sound upbeat about both the
A h ' s father, wbo repeatedly provided
company's functional-looking, high-permoney through Morita & Co. in return
,formance Profeel Pio w ,which is sellfor s t x k in the new venture.
ing well, and the 8mm kandheld video
AT Was r;l*mur. l T K evolved into
camera, which is struggling. "This year
we will recover our profits, and next
Sony. And Morita & Co., with A h ' s
am
year will be a much better year," he
brother Kuzuaki a t the helm, has seen mmnm8nraurrrruro#ou
says. Most analysts agree that Sony has
some modest tramformations of its
own. B e s i i selling $40 million worth will bearme president of Morita & CQ, a t least halted the slide that has
and miso annuaUy, the when Uncle Kuzuaki retires. He joined dragged its stock down to a recent fiveof &, 8&,
business now also includes food dietrib- the company two years ago after stinta year low in Tokyo and has kept its U. S.utars, snpermarkets, and a vineyard. in Sony's recounting and treasury d e traded shares essentially unchanged at
about 20 for the past year. But analyst
Its boldest diversiibtiin so far, how- parhnenb and in the company's J a w
ever, is R a y b y Inc., an w r t m e n t of nese record ventura with m Inc. At Eugene G. Glazer of Dean Witter Reynservices that are aimed a t Tokyo's for- the artists and repert~rydepartment olds Inc. says it could be 1989 before
eign,executivesand their spouses. The of W h y Group Inc., he ammpa- Sony surpasses even last year's meager
v e n m offers a Japaneee cooking nied Julio Iglesias, Men a t Work,
level of earnings.
Sony's struggle to recapture its glory
school, interpreter services, and a lan- Heart,and other performers on their
will depend more and mote on Ohga,
t o w of Japan.
~uage
EXhrJL
Raykay is largely the brainchild of
Despite his diversification moves, Hi- ' since Morita is gradually diminishing his
role in handling the company's day-toHidm mrita, 35, Akio's eldest son "I
deo says M O W S traditbnal prcducte
want people who come to Japan to will always m e first "For my family, day affnirs. "As far as basic policy is
h w about my country, the diier- the Morita history has alway8 been concerned, I'm still in charge," Morita
says. "But Ohga'~running the compae n w between the cultum and how miso, sake, and shqpIuhe nays. &en
we really feel," he says. He plans to Sony "is only a venture business for ny." The pair make a close-knit team,
add courses in auch Japanese arts as the Morita family." Some venture.
Ohga, 57, first met Morita more than 35
flower arranging and to help foreign Morita & Co. owns 9.4% of Sony. The years ago, when he was studying opera
c o m m set up in Japan, whether initial $33 investment is now worth a t Tokyo University of the Arts. At that
time, Ohga began writing letters to Sony
flnding offiee space or renting furni. about $480 million.
in which he criticized the quality of the
hue for executives' homee..
Bg Amg B o r n *a Tokyo
sound from the company's tape record-
THE SAGA OF SOW

ALL STARTED WITH SAA(E
--- -
5
"3
66 BUSINESS WEEK/JUNE 1,1987
C O V M STOW
COVER STOW
BUSINESSWEEKIJUNE 1,1987 67
.
@
ME. AID MI. on-
mrrr sum r u u uomu urn ROIAN OMU ~
relatively cheap $32 Walkman just for

the U. S. market
Betamax $ also one of the reasons
Sony is showing more willingness to cooperate with competitors. In developing
the technology for compact disks and
players, Ohga forged an alliance with
Dutch electronics giant Philips. Sony has
since become the world's largest suppli
er of CD players, with 35% of the U. S.
market, and is one of the largest producers of the disks themselves.
m w p l ~ u u w Sony
.
has even started
assembling products for its competitors.
In an effort to win wider acceptance for
it4 8mm camcorder, which is incornpatible with VHS video players,'it has agreed
with 127 manufacturers on standards
for 8mm gear. Sony makes the 8mm
equipment marketed by Pioneer, Fuji,
and others.
Ultimately, the Betamax experience
was "a blessing in disguise," says Yoshi
Tsununi, a professor of international
business a t the City University of New
York and a friend of Morita. "Mr. Morita has become more receptive to other
ideas and has been listening better."
Tsummi says he wouldn't be surprised
to see Sony make an acquisition to
strengthen its nonconsumer businesses.
It's not clear just how deep the new
attitudes go, however. Song's commitment to the VHS-incompatible8mm camcorder resembles its stubbornness with
Betamax. But this time, Sony executives
say, the format could pay off in differ
eut products, such as individual movie
players that could he rented on air; planes. More puzzling is Sony's unwillingness to give up on Betamax, which
Morita still insists has technological advantages that can be exploited. Says one
competitor: "If Sony switched to VHS
format in their products, they would be
No. 3 after one year." This summer, VIE
makers plan to unveil an improved version in the U.S. thdt eould make l i e
even more difficult for both Betamax
and the 8mm camcorder.
Sony's boldest move for dealing with a
cutthmat consumer electronics market is
its diversification into nonconsumer businesses. There, the theory goes, the company will be less dependent on coming
up with a steady stream of relatively
short-lived hit products-and able to use
its unique talents in video and semiconductor technology to create its version
of the office of the future. Sony engineers envision an office where they can
"call up" their colleagues around the
world by speaking their names to a video console on their desks. They could
dictate memos to the same screen and
send them with a voice command. They
might carry a Walkman-size version
with a tiny screen so they can review
documents from the office files while
entertaining clients on the golf course.
Sony's U. S. operation, which already
gets 35% of its sales from nonwnsumer
TheBetamaxdebacle
taught Sony the value of
sharing technology and
not going it alone
68 BUSINESS WEEKIJUNE 1,1987
I I R TO sow
products, is on the cutting edge of t

diversification strategy. "We have :
proximately 20 new business areas jl
in Sony America where we are inve
ing," says Neil Vander Dussen, p n
dent of Sony Corp. of America.
The efforts in the U. S. and arou
the world are producing some pieces
Sony's vision of the future. Sony a
the first Japanese company with a pa
erful 32bit desktop computer, which
the heart of its engineering workstati(
It has quickly become a major produ(
of full-feature telephones in Japan. So
also has taken the lead with the 3%floppy disks and drives that are biddi
to replace 5%-in. disks as standa
equipment on computers.
Perhaps the most impressive marria
of video with the computer is what So
calls interactive video. Sterling h
Inc.'s Wmthrop Pharmaceuticals UI
uses a van with a custom-crafted versi'
to provide simulated demonstrations
how its products work. The system k
a doetor "treat" a patient with hee
failure, The doctor sees hispatient goi
to the emergency room, while the s]
tem provides the patient's case histo
and vital signs. The patient's reeove
depends on the doctor's response to c
screen questions and choices.
%KIOD o w r r s Even though Sony h
managed to raise sales of such noncc
sumer products to 25% of world*'
sales, executives now concede their tin
table for hitting 50% has been throv
off. "It was a good dream, and I think
is still a good target," says Shim Kc
iyama, who heads Sony's Communic
tion Products Marketing Group. V
Un
c
f
tunately, we won't be there by 1990."
The main problem has been coming I
with enough distinctive products
make strong headway in an already COI
petitive market, particularly compute]
Sony has "a number of good enginee
and marketing guys, but unfortunate
almost none of the top guys understai
the PC or computer market," says a fc
mer Sony executive. And Sony has d
covered in its nonconsumer businer
just as it has in consumer goods, that i
vaunted performance advantage is ni.
rowing. Last year, NBC Inc, tapped MI
sushita for a $50 million, fiveyear ca
tract to supply videotape equipme1
"Sony was comparable but not as good
says Steven Bonica, vicepresident f
engineering a t NBC. Sony has since cou
tered with a new system that recent
won a contract at capital ~ i t i e s
Inc., but it is clear that the company I
longer has the market to itself.
Where Sony has earned almost univ~
sal respect is in its effort to become
more global company, which will go
long way toward softening the impact
COVER ST
Technology
Beyond the Bijou

SOPHISTICATED FILM TECHNOLOGIES
AND FUTURISTIC FORMATS ARE REDEFINING
THE MA'PURE OF COMTEMPORARY MOVIE THEATERS.
BY JIM PETTIGREW JR.
..
22 SKY May 1987

%
.,
....>--
--v#F-.*-.-
,..
., ..
..
,,,
, , .
! r
i L
n a,world thht Ftinies serrns defined

there isone interby incompat~b~lity,
est which most of us have in common a passion for the movies. And this love
of the cinematic fantasy world shows no
signs of dissipating. Different trends
may appear, such as the VCR explosion,
but upon examining the world of contemporary cinema, one fact becomes
readily apparent - the movies are not
going away. Neither, according to industry leaders. are those esteemed hideouts
of escapism- the theaters.
Though movie theaters are here to
stay, there is a great deal of debate currently going on inside the showcase, or
exhibition end, of the film world. Some
of it concerns topics such as changing
image, and a considerable amount of the
debate relates directly to technology.
The path of events that set the stage for
this situation contains a number of key
elements.
Beginning in the early 1970s. the
movie-theater industry in the U.S.
slowly slipped into what may be called a
technical rut. There were tremendous advances in home-audio technology. but
the exhibition business did not really
keep up.
There was also a trend toward "multiplex" cinema facilities - not an inherently weak mgketing idea - but their
early manifestation didn't prove terribly
successful. The first multicinemas were
cramped, had very small screens, and
ambient sound many times bled over
from next door.
In the spring of 1977. George Lucas
produced a film that would have a revolutionary impact on the exhibition industry. It was released to theaters carefully
picked for certain technical standards.
Besides the well-known special effects
and cinematography, Star Wars boasted
a soundtrack in Dolby" stereo. It was
played over an advanced audio system
filled with new designs, including a
"subwoofer" that generated sound you
couldfecl as well as hear
The film also brought fresh attention

to the large-frame 70mm format. This
expensive but vastly superior process
had been used in earlier landmark
movies (Lawrence of Arabia. Parton)
but had fallen out of favor in Hollywood.
With a new audio standard established
by the Lucas blockbuster, the cinema industry moved into the 1980s - and a
whole new set of business realities,
coupled with a feverishly expanding

foreground of technological developments.
Clearly, the industry had to adapt and
change. The situation was brought to a
head by the growth of home video, but
that trend was only a part of the whole
arena. Faced with thischallenge, the thcater industry began what is now a recognizable set of changes to "remainstream"
itself. (The latest studies, incidentally.
show a kind of reverse effect from the
home-movie phenomenon; it's actually
sending patrons back to theaters, seeking
favorite titles in full-blown film environments.)
From the projection room to the box

offkc, technology k krmbatlng
the cinema house. Dewlo@ by
Douglas TNmbUll, opposite, YKlwrcanc
equlpped vdth a computcrizcd motion
conbol wtem and 7Qmmfilm a w e d
audiences at Ocpos '85 and '86. Above
computerbed tkkeUng and c c a r a l d a t
sy&ms, i l k those d&bped by Pace
Corporation, a n a k o coming hto
the piEtUre.
SKY May 1987 1
ALL IHX-INSTALLED SYSTEMS UNDERGO RIGID

CERTIPICATION AND ARE THEN TESTED EVERY SIX
PAONtHS TO ENSURE QUALITY ADHERENCE.
Accompanied by an advanced audio

design from THX Sound Systems, a
dMsion
LvcasRlm Ltd., an entire Rim
rests o n a platter and feeds through a
projectorwithouttheprojectionisthaving
to use two projectom.
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Today, the theater repds~tioningpro

csh takes a numher of wses. includil
better s o u n L g
cleaner halls, and hn overall push
rcenereize the "exoerience" vital
moviegoing. "Theaier companies a
building at record numbers, by the way
notes Glenn Rerggren, vice president
Optical Radiation Corporation of Azus
California. one o f the world's large
suppliers o f theater equipment. "Tha
want to make them better, not only aso
erations are concerned - breakdown
etc. t h e y ' d also like to have aneffecti,
theater that lets the public know they'
modem, better than the ones built fiv
ten years ago."
Theaters are now utilizing cor
puterized ticketing and central-data s)
tems, such as those developed by Pac
Corporation o f Bothell, Washingta
The integrated Pacer system instantar
ously gathers all sales data for the cas
intensive business, compiles it, and t
information is uploaded nightly by au1
matic modem to central offices. " 0
system opens up the possibilities of credit-card and off-site ticket purchasing,"

:I notes Keith Myers. Pacer's marketing
t vice president. "This may reach a whole
f different segment of affluent consumers
.I -and even influence the kind of movies
11 that are made."
1 This trend is well characterized by
n numerous showcases across the country.
11 One example is the General Cinema
n complex inside Merchants Walk, a north
I Atlanta mall. There. Cinema One feau tures an advanced audio design from
1 THX Sound Systems, a division of
I( Lucasfilm Ltd. in San Rafael, CaliforI nia. "Patrons don't really articulate it,"
explains theater manager Steve Crisp.
o showing off the loudspeaker system and
a heavily insulated walls, "but they know
I what they want in a film experience
*.
toda ,and sound is verv imppLtanL
1
ne healthy sign that experts point to
t isthe influence eierted by firmssuch as
4 THX Sound Systems and the Theatre
li Alignment Program (TAP), both compo:I nents of Lucasfilm Ltd. All THX-inI stalled systems undergo rigid certification and are then tested every six months
to ensure qualityadherence. TAP vigorI: ously encourages high standards and
a dialogue between suppliers and theaters.
'
' W e are targeting theater managers
a andpersonnel withseminafi," says Kim:I berly Stmb, marketing director of the
3 Theater Operations division at Lucas11 film. 'These will help them answerquestions about film presentation - sounda hacks, how they're made. Lots of times
people will have questions about how
I1
films are made, and the only people that
11 they have to turn to are the theater per)
sonnel. We're trying to make sure they
r are informed and can answer public
u questions - and also realize how impor11
tant theirroles are in the film chain."
Currently, amid the film exhibitors'
concerted push to modernize, there is an
: accelerating debate in both the equip11
ment and showcase fields about what
:I
technical form the near future will take.
1 The issues must be set in context within
I a growing a m y of spectacular new technology, film formats, and even new ap1
proaches to the filmic experience.
Two of the central topics now being
r debated with increasing fervor in the in;I
:;
I
-I--
SKY May 1987 25

. . .
. .
ONE SYSTEM UTILIZES

7OMM FILM, A VERY LARGE
SCREEN, AN EXTREMELY
FAST FILM SPEED AT 6 0
FRAMES PER SECOND, AND
DIGITAL SOUND.
dustry include film speed, expressed in

frames-per-second (fps) and film format
(frame size, coupled with larger
screens). A third topic is the increasing
impact o f high-grade video and its eventual manifestation - high-definition tele- and how the two indusvision (HDTV)
tries will affect eachother.
For decades, the standard film speed
i n the theater industry has been 24fps. At
this speed, a relatively low uroiectionlight jevel must be maintained-(ten-16
foul-candles) to prevent an annoying
sensation called "flicker." There are now
several proponents who are urging that
f i l m speeds be raised. so that higher light
levels may be possible. Faster fps rates.
they point out, also make for richer imagery, better color. and heightened spe-
26 SKY May 1987
cial-ell'ccts possih~lities-as well as decreasing industry headaches such as

"comet-tailing" and blurring.
The 35mm film format has also been
the industry standard for decades.
Numerous industry leaders are quick to
point out its obvious obsolescence. The
70mm film size, they note, offers much
more than a 100-percent improvement
i n cinematographic possibilities. "Most
people. including large film manufacturers, do not really understand how much
detailed information can be put on 70mm
film." asserts Optical Radiation's Bergpren, "and shown back on the screen."
A central point. i n an overall sense.
that bringsthese debates into focus is that
there i s an already-existing arsenal of
new cinema systems. Each camp points
inarguably to the future, andeach system
is now offering spectacular new cinematic experiences.
some o f the new fomlats first debuted
in what the industry calls "specialvenue" theaters - noncommercial, museum, and other educational halls. Currently the granddaddy o f these is the
IMAXm/OMNIMAXb system, now
amazing audiences at Washington. D.C.'s
Smithsonian, Boston's Mugar O M N l
Theater at the Museum o f Scient

Chicago's O M N I M A X Theater (loca.
i n the Henry Crown Space Center at
Museum of Science and Industry).
O M N l Theater at the Fort Wonh Mu
um o f Science and History, and the S
mce Museum o f Minnesota in St. Pat
among others. Several of these "spa,
format images are projccted ti1rough a

fish-eye lcns orito a 76-foot dorile. which
washes the scrcen witti an cnorrnous picture. The screen is tilted toward the audience at a 30-degree anyic, which crcatcs
astunning wraparound effect.
Showscan" is another radically new
film systcrn with breathtaking sensory
experiences. Developed by special-effects wizard Douglas Trumbull (Star
N'ars, Star Trek; director of Silerrr Rurrning and BrnbzsrormJ Shov'scan has
amazed audiences at Expos '85 and '86;
the Vancouver theater in Canada remained open after the fair, and 50.000
people saw the Showscan presentation in
January of this year. The corporation is
currently opening special-venue theaters
in Los Angeles and several other cities in
the U.S..Australia, andNewZealand.
Showscan utilizes 70mm film, a very
laree screen. an extremelv, fast
film
~speed at 66 f i s , and digital sound. While
developing the process. Trumbull ran
extensive tests at various film speeds,
utilizing participants at California universities. For several years in the 1970s.
Trumbull was also head of Future General, an experimental depanment at
Paramount Studios.
Atlanta's independent filmmaker,

VanDerKIoot Fllrn and Television,
extensively utilizes computers and
high-grade video in current
p:oduction work.
~~~~
~~~~~~
I
1
;
i
:
1
theaters were designed by the architectural firm of HammelGreen and Abraharnson of Minneapolis, which estimated that 20 million people attended
OMNIMAX theaters around the world in
1985.
The heart of the IMAX system is a
unique projection appuach; the large-
Even though Showscan is currently

confined to special-venue theaters, the
corporation clearly has plans to move
inlo the box-office market. "We don't
have an announcement yet, but we're
very close." says marketing director
Cindy Porter. "We're confident that
when an announcement is made, a feature film will beout within two years."
Currently, the leader in the race to
bring stunning new technology into the
first-run film market is FuturVision
~
3@, a division of ~uhlfiinernaInc. in
New York. The brainchild of former
Kodak executive Eric Knutsen, this process utilizes large-screen (wall-to-wall,
flmr-to-ceiling) 70mrn, a sophisticated
digital audio system, and runs at 30fps.
For several months. Knutsen and
FuturVision have had ties with Loews, a
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SKY May 1987 27
A BIG SELLIIYG POINT TO FiRST-RUN THEATERS I S

COMPARATIVE EASE OF COMPATIBILITY AND
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World Famous
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.3
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The IMAX" system Is a unique projection

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projected through a iish-zye lens onto
a 76foot dome.
Rare Uk Yze G-n
major theater chain (his system is now

being showcased at Loews Tower East,
a prestigious Manhattan screening
mom). At presstime, Knutsen was preparing to announce an agreement with a
second major chain.
Besides its audio/visual sorcery. one
of FuturVision's big selling points to
first-run theaters is comparative ease of
compatibility and cost-effectiveness.
Working with Optical Radiation Corp..
Knutsen has developed his system so that
it can be integrated into existing theater
hardware - and still offer the dazzling
filmic experiences that all aggressive
chains are now scrutinizing.
One aspect of FuturVision is
audio, said to be comparable to
ity (actual CDImovie
still in the future). With this process, the
-ddaudio
is taken from the
film and fed to a Knutsendesigned processor, which then sends audio signals to
an upgraded house system.
"Now," Knutsen says, "the projectionist can walk into the booth and
flip two switches. One automatically
changes screen brightness from low level
to a much higher level for our film, and
at the same time changes film s p e d from
24 to 30. The second switch automati-
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1I
28 SKY May 1987
cally bypasses housc audio and goes to

our processing equipment. So, there's
virtually nosecup time."
Until recently, the film-production
community and the cxhibitorltheater
equipment industries have viewed each
other as barely tolerable neighbors.
forced to get along. but with littte meaningful dialogue between the two camps.
Now, though, in the face of this starburst
of new technology, the two industries are
working together. insiders point out, to
achieve the common goal of a tmly
realistic cinematic experience, and the
subsequentfiscalrewards.
Bill VanDerKloot, owner of VanDerK l w t Film and Television in Atlanta,
one of the premier independent filmmakers in the south, has a keen eye on these
and other developments. His firm extensively utilizes computers and high-grade
video in current production work.
"Today," he points out. "stereo soundtracks are mandatory, even for lowbudget films, not the case just ten years
ago. People have become very sophisticated in their technical tastes for film.
"I am just incredibly excited about
what the future has to offer," VanDerKloot concludes. "The more like reality
we can make the dreams that we create
on film, the more fascinating and fantastic films will be."
Contributing editor Jim Pertigrew J r .
isbasedinArlanra, Ge0rgia.Q
January 24, 1991

Director
Advanced Media Group, Inc.
Dear Mr. Caterbone:
The material--you sent to George Lucas has been forwarded to our legal department for
-
Sincerelydyours,
,
'
Jeffrey C. Ulin
Associate Director of
Legal and Business Affairs
JCU:gg
Enclosure
P.O.Rox 2009. S w Mael California 84812 Telephone (416) 652-1800

Tclex 330499 LFL SRFL
Ferranti sues Guerin,

-
Thomas L. Flanne
lntelligencer ~ourna7~tafI
James H. Guerin and three of his former International Signal & Control
Corp. executives were sued for almost
$200 million for fraud Thursday by Ferranti International Signal PLC.
Ferranti charged in a lawsuit filed in
London that the former Lancaster business leader and the others "knowingly
participated in a dishonest scheme to
abstract funds" totaling more that $443

million from Ferranti.
served
In addition to Guerin.
- - - - - , who
--.
-- . -- -a sdeputy chairmanof Ferranti until being
ousted in May, the $198,500,700 suit filed
in London'sHieh Court named:
~-~~~
Robert L.-shireman, Marietta R1,
most recently finance director of London-based ISC Technologies Ltd., and
former finance director of ISC before
Guerin sold the company to Ferranti in
1987 for$660 million.
Wayne K. Radcliffe, of 3190 Grand

Oak Place, vice president of ISC's Lancaster operations a t the time of the
merger.
3 aides for $198.5 million

-
Shireman, Radcliffe and Resch used

five now-defunct Panamanian dummy
corporations as conduits in the "dishonest scheme" to drainover $440 mlllionm
cash from ISC's coffers, via overvalued
or non-existent contracts, prior to the
Ferranti buyout.
The suit, or writ, claims that from
February 19% to July 198%the Panamanian companies Sestri Associated. S.A. :
Technology Associated International;
Elverton, S.A.; Navarino Development
Corp.; and Lerwick Holdings, S.A. collectively prwessed 29 bogus sales and/
or purchase contracts for misslle systems destined for the Republ~cof Chlna,
More SUIT on A-4
A-4
FRIDAY, DECEMBER 1 ,1989
FROM PA1
Suit: Guerin, 3 associates named

Continued from A-1
the United Arab Emirates and
Pakistan.
The contracts were for:
Air-to-ground missile equipment and technology to the China
North Industries Corv..
. . or Norinco.
A bogus 1984 deal to sell additional Hakim air-to-ground missiles to the United Arab Emirates
general headquarters. The suit
said ISC also had a genuine contract to sell this hardware to the
United Arab Emirates.
A bogus contract for a missile test ranne, missile technoloev and a technical develoombnt
Facility in Pakistan. ~ h i bcontract, codenamed KP for Khyber
Pass. is believed to be the Lareest
-.
of the three.
The exact value of the alleged
bogus contracts was not disclosed in the suit, apparently hecause the contracts were comvlex financial transactions involvine numerous comvanies.
~ u e h and
n ISC remain targets
of grand jufy investigations into
illegal arms shipments to embargoed Third World countries, such
as South Africa, Iran and Iraq.
Also, Scotland Yard, in conjunction with theU.S. Attorney forthe
Eastern District of Pennsylvania
in Philadelphia, is investigating
Guerin's role in the Ferranti
case.
Neither Guerin, who now lives
in Naples. Fla., nor his attorney,
Joseph Tate, would comment on
the massive suit. Shireman, Radcliffe and Resch did not return
calls placed by the Intelligencer
Journal Thursday evening.
Also named, in what British Officials are calling one of the largest CIVII m t E 3 l 7 T ~ n '
IiMb.e,-WeTe the Bve, n o w d v
fuict PZBmanian companies,
a r I t l S h f~rms?Se"PermrofP
I
e& a n d -1SC 'mnKn~.
. , ~~.
-.
- 3 Z i r i n has long'denied being
involved in the alleged fraud.
British sources said Thursday's
action vras just the first of several legal maneuvers Ferranti is
expected to take against Guerin
and possibly others in hopes of
recovering the missing money.

Jacobson has vleaded auiltv to
Ferranti, once Great Britain's
third largest defense contractor,
claims the "massive f r a u d of
the bogus contracts has a l l but'
bankrupted the company and
placed it in a position to possibly
be bought in part by its French
Shireman's ex-wife, Patricia
competitor in radar technology
Dunn-Wiggins, served as head of
development, ThomsonCSF.
Known abroad as Prime Minis, finance for United Chem-Con,
ter Margaret Thatcher's model and was one of nine of the compadefense contractor, Ferranti is ny's executives to serve time in
one of the country's largest em- federal prison on charges involvolovers. About 8.000 of the coming fraud against the U.S. govbaris's 2 s . ~ - p e r s o nworkforce ernment. .
represents the largest scientific1
James B. Christian, the former
technical private sector employ- president of United Chem-Con, is
ee group in Scotland.
currently serving six years in jail
Legal sources said filing .the for his part in the company's
suit in England first gives Fer- multi-million dollar defense conranti somewhat of a-strategic tracting scam. Christian, in a
edge and access to information statement to the court. accused
that would be difficult, if not im- Guerin, a United Chem-Con cooossible. to obtain through
- the founder, as the .mastermind of
U.S.courts.
the fraud.
Although admittedly defunct,
Guerin has denied this accusathe Panamanian comvanies are tinn.
..-..
being sued in hopes df prov ing
that the four executives were the
beneficial owners, and thus the
ones who orofited. accordinn to
one international law expert.
Daniel G. Partan, professor of
international law a t the Boston
University School of Law, said
filing the suit in England may initially produce a round of jurisdictional battles. but under the
multi-national' convention, or
treaty, between England and the
US.. if Guerin and the others do
not defend themselves and a
judgment is awarded by the British. the case will not be reviewed
on
its.merits
here.
~
--~
- -- - ~ . . - ~ ~
"They better defend it over
there," said Partan. "Believe
me.
thev better defendit."
s
.....
ti&'6eco~n,
f d r d i t i o n to his involvement
n.
Guerin arrives
:o testify on
12.75-million
pay dispute
1y Ernest Schwlber
bnd Tlm Mekeel
3ew Era Stafi Writers

n Embattled Lancaster defense
.]contractor James H. Guerin
showed up at a city law office
I today to answer questions about
! a $2.75-million pay dispute with
['hisformer corporate attorney.
It was the first time since SepI tember that the founder and forr mer chairman of International
r Signal & Control Corp. has been
I seen in public.
; Guerin, a tall, husky man, a p
I peared relaxed and at ease as he
c strode into the Cipher Bullding, a
I! half block east of Penn Square, a t
L 9:23a.m.
? He quickly rode an elevator to
.I third-floor law offices, where he
a met the glaring white lights of
\ news cameras when the doors
opened.
"Good morning," Guerin said
I to four reporters -two local, two
o from London newspapers
h when he emerged from the elevaI tor in a small office corridor.
He followed that greeting with
1
v two softly-spoken "no comI ments" to questions, and then a
a second, hearty "good morning."
A smile played across Guenn's
3
face as he walked. He was acc companied by h ~ sattorney, JOseph A. Tate, and a Tate assist11
ant.
Guerin, who built ISC from a
I
basement enterprise into an in;
ternational conglomerate, is attt
tempting to stop further payE
ments on a $2.75-mlllion severa ance pay agreement he signed inI
1
March with William A. Clark, hisi
f
former toplegaladviser at ISC:
The defense company chlelI
-L
James H. Guerin, right, founder of International Signal and Control, walks into a law office il
today. He isaccompanied by his attorney, Joseph A. Tate, of Philadelphia.
-b4
'A
paid Clark $1 million in spring $750,000 for Clark's estate in
Court documents 1
1989, but halted payment Of the York County - because, he indicate that be wa:
remainder, claiming that Clark charges, Clark "extorted'' the tion Guerin about
+ lieves the
secrec.
had
broken
a secrecy. -~ r o v ~ s l o n o faeremrentfmrrrhiftr.
~.~~
. ~ -~~
~ .
- - ~- ~
the agreement.
. 7Today's
session was intended
and wh
In addition, Guerin has agrue@'
to allow Clark's attorney, Joseph
in court, he should not be
quired to pay the.
money - $1 million
See GUEl
-.
A-4
WEDNESDAY, JANUARY 10,1990
FROM P I
Guerin: Sued over secret tapes

Continued fmmA-1
In July 1989, Clark sued Guerin, clainling his
former boss balked after paying $1 mill~onon a
March 28,1989 agreement for compensation owed
him after a five-year tenure with ISC.
Guerin has said Clark violated a secrecy provision of this agreement, rendering the deal invalid.
Tuesday's marathon deposition lasted nearly 12
hours, and Bpda declined comment on what was
Satdaunng the proceedln .
The July suit named ~ i e r i and
n his fomer holding company, Parent Industries Inc., now dolng
business in Austm, Texas,,as Urban Industries
Inc., as defendants in the actlon. Guer~nhad signed
the agreement to include both ISC and Parent Industies as responsible parties.
Urban Industries President Michael A. Peck is
scheduled to give his deposition this morning in
Roda's office.
In the suit, Clark claimed his association with
both currently embroiled m
Guerin and ISC
other legal problems here and abroad - had ruined his professional re tation and caused his
health to be compfomisedW
Guerin immedlatelv countered. savine Clark
had used "extortion i n d coercion" to-secure the
deal.
Guerin admitted to making the tapes, but said
the recordings would prove his extortion c l a ~ mand
asked the court to let a jury to decide if Clark
should get the $1.75 million balance or give back
the $1 million he had already received.
IJnder the
Sur. ~state
-~~
~ -Wiretannlnn
.. t h and Electronic
veillance Control ~ c t . ~ b oparties
must give their
consent to having ~ r i v a t econversations recorded,
for
unless the
~~- recordine falls under the ~rovisions
lawenforcement otricers gathering iiformatlon in
the performance oftheirduties.
In the wiretav suit. Clark said Guerin. on at least
two occasions,recorded confidential meetings the
two had in Guerin's ISC office between March 20,
1989, and March28,1989.
Under the civil recovery provisions of the act,
should the jury find in Clark's favor, he could recover actual damages, but those may not be less
than liquidated damages; punative damages; and
reasonable attorney's fees and other costs associated withthe suit, according to the filing.
A violation of the act also constitutes commission of a third degree felony, punishable by up to
seven years in jail andlor a $15,000 fine, according
to Lancaster County DistrictAttorney Henry S.
Kenderdine Jr.
"I am watching the case," said Kenderdine
Tuesday when asked if his office was considerjng
prosecution. "I do not want to take criminal action
(against Guerin) at this time that might interfere
with the civil action pending but, as I said, I am
watching the case."
In October
the
. .first
" questioned
..
,~.
~ , . 1989,
. when Clark
~-~
~~
....
~~
lntelligencerJwrnal photo by DanMarsehka
James H. Guer~nand his Phila. attorney, Joseph

Tate, walk up E. King Streetfor lunch Tuesday.
ings that ended on Dec. 4,1989.
It was then Guerin was ordered bv Lancaster
-~
County Judge Michael A. ~ e o r g e l t6
~ sappear for
the deposition by Jan. 15. to provid
the laves and toanswer any and all aues Ions L a r
asked-.
Tate, to no avail d u r ~ n goral arguements several
days earlier, had t r ~ e dto get Georgelis to postpone
the depositions or, at thevery least, limit Clark's
auestionine to the issue of the agreement. savine
Guerin fac;d possible criminal &arges and&ula
not defend the civil suit without compromising his
criminal defense
~
-py&
'
1'
Guerin is expected
to testify ~uesday
?ewn mEraMekeel
StaflWrlter
James H.Guerin is scheduled to give preliminary testimony Tuesday in his $2.75 million severance dispute with his former corporate
attorney.
If Guerin appears, it would be the first time his whereabouts have
been established since September.
Guerin. the founder of International Signal & Control, is disputing
the validity of the deal with William A. Clark, formerly its vlce
president and general counsel.
Guerin's deposition is set for 9:30 a.m. in the office of Clark's
S m s i o n is closed to the
attorney, Joseph F. Rod? 36
.- E. King
-.ns.hlie
rUU....
I'Eideoosition
was scheduled in December at the order of Judge
-~
~..
Michael A. Georgelisof Lancaster County Common I'leasCourt.
Geargelis denled Guerin's bid to ha\.e the session delayed. pending
resolutl'on of ~ossiblecriminal charges aaainst him. and denied his
rique.it lolimit questionsstr~ctlyt o t h c a g k n e n t .
In court papers. Hoda has indicated he \ r i l l ask Guerin about issues
currmll\. under investigation b?' British and American authorltlcs.
becauseihey relate toGierln's stateof mlnd whcn he signed thedcdl
lnternatlonal Signal is being prubcd for posslblecontract fraud and
~llevalexDorts. Nocharges hare been fllcd
But Guerin
is beine sued bv International Signal's merger Dartner.
~Ferranti, torallegcdly participating ina $331)nilllion cont?acifraud.
Guerin's whereabouts have been a mystcry slncr. news 01 thc frautl
broke in Se~tember.Though he has homes in Naples. Fla.. and Lancaster. f r b r k ~~nattemnts
t ~ . . 6v
~the~Dress
- toreach hiin ha've been unsuc~.
cessful He reportedly has been t ; a v e l ~ nabroad.
~
In court DaDers. Guerin has said Roda's questioning \rill force him
to choose between defending himself against Clark and asserting his
constitutional right against self-incrimination. thereby posslbly losing to Clark.
Guerin also has said that answers to Roda's questions could "expose facts" that could hamper his defense against possible criminal
charges.
Tuesday's deposition is the latest development in seven months of
legal jousting between Clark and Guerin.
Clark signed the deal March 28 with Guerin and Parent Industries
Inc., at that time Guerin's holding company.
Guerin paid $1 million of the agreement. then balked at paying the
rest. Clarkstartedcourt proceedingslast July to collect the balance.
Guerin contends that Clark used extortion and coercion to obtain
the deal, and broke a secrecy provision in it. so the deal is void.
Guerin also claims that he has audiotapes of Clark that prove extortion was used.
Clark denies he used extortion to win the deal. He argues that it is a
legitimate agreement to compensate him for unfulfilled financial
promises.
Parcnt Industries Inc. presldenl Michael A. Peck is schcduled for
de~ositlonWednesdas. Peck bought
- Parent Industries Inc from Gutriliin September. In other developments today:
Ferranti is expected this week to report a loss of at least $8
million for the six months ended Sept. 30, in part because of the
restructuring costs from the fraud, said The Guardian newspaper.
The French firm Thomson-CSF is unlikely to complete a rescue
bid for Ferranti before Ferranti's Feb. 5 deadline, The London Times
reported.
~
.~~
----
~~~
~~
~~~~
-~
~~
Guerin sued for secret tapes
-..-
OUlrll,llL1Ci),
VUI
I,"
criminal charges have been

filed.
Guerin has steadfastlv" denied
any wrongdoing.
Guerin's attorney. Joseph A.
Tate, said this week it is impossible to provide a detailed rebuttal
to the fraud allegations because
of the ongoing criminal investigation. He said he cannot allow
Guerin to present his explanation
of the alleged fraud. Nor, hesaid,
is there anyone who can
knowledgeably give Gucrin's
side at present.
Shireman, the Marietta man
who was head of finance at Tech
Ltd.. was out of town this week
and could not be reachedfor comment on the detailed fraud account. His attorney didnot return
phonecalls.
The other two employees
named in the suit, Radcliife of
Lancaster, and Resch, of San
Clemente, Calif., have declined
comment on their lawyers' advice. Radcliffe has told the British court that he intends to o p
pose Ferranti's lawsuit.
f the three losses identified by Ferranti, the
fictitious "Khyber
Pass" contract was
by f a r the most damaging. accounting for about $250
~ 1 1 l i k othe
f totdloss.
The contract, brought to the
company in late 1986 by Guerin
nersonall\~.called for delivery of
broductiin systems for at least
three missile systems - air-toair, air-to-ground and ground-toair.
~
was
Tech Ltd.'s S U.D. D O S ~role
t u pnll the pieces together. in this
rase buyins h;~rd\vareand techn o l o ~ from
r
South Africa. and assembling the systems for resale
to Pakistan.
Its contract called for supply of
tooling, technological "how-to"
data, test facilities and missile
prototypes, all supplied by an
arms subsidiarv of BarlowRand, a South ~ j r i c a ncorporation, and a second as-yet unidentified company.
Even by Tech Ltd.'s normal
standards for high secrecy, the
"Khyber Pass" contract had exccptionalsecurity safeguards.
First, it was not accompanied
a bank's
by a letter of credit
guarantee that Tech Ltd. would
be paid. Supposedly, Pakistan
objected to such a letter, fearing
news of the deal might
- leak
through the bank.
Second, Pakistan's payments
were routed indirectly to Tech
Ltd. through a Swiss bank account managed by a front company. identified in Ferranti's law~~
~~~
... .....
' -..: .'.

biggest defense fku&in Europe, but one of the ,nost
cleverly orchestrated 99
~
-..r..>4n
r l'UClill
-LLu
gucts
; wcre actual\\
: ; ;1
a former Ferranti financial official
/-5-98
suit as Lerwick Holdings S.A.

Marwick, an outside auditipg
firm that regularly checked International Signal's figures, took
steps to verify thecontract.
Ferranti auditors and officials
even visited Pakistan, where
they interviewed a man believed
to be Major Gen. Talat Masood,
then in charge of Army ordnance, and received satisfactorv
answers to their questions, iimpany officials say.
The alleged fraud began to unravel as Guerin left the company
in May to organize a Leveraged
buyout that would have returned
several divisions - including
TechLtd. -to hisownership.
That deal collapsed when Guerin was unable to get financing,
after being turned down by Drexel Burnham, Citibank and Ferranti itself. Had the buyout been
completed, investigators believe
the alleged contract fraud might
not have come to light.
The first substantial sign that
something was amiss came when
Ferranti officials noticed a lack
of consistency on dates on contract documents.
Further financial discrepancies came to tight in summer,
andin mid-July, the front companies abruptly were dissolved. At
month's end, payments on the
Pakistan deal stopped altogethe..r. ~
ifying the French Mirage fightcr

jet that would carry the missiles,
the missiles were not shipped to
the Middle East kingdom.
Turning that delay to its advantage, Tech Ltd. signed the UAE
to a contract for a more sophisticated version of the Hakim, and
sold, or supposedly sold, the old
missiles to the People's Republic
of China.
Ferranti officials say auditors
from Peat Manvick ins~ected
.
portions of the old mi~silcvr(1c.r.
orwhat they though1 a a s t h c missile order, in a warehouse in 19nh.
But afte'r the missiles were
shipped from the warehouse,
they vanishcd. Private investigators hired by Ferranti to find
them have beenunsuccessful.
During a chairman's committee meeting, however, Sir Derek
Alun-Jones, Ferranti chairman,
congratulated Guerin on the sale
of the missiles, which were then
code-named Project Alpha, one
director recalls.
SO, wherever those missiles
are today, Ferranti says it had to
swallow a loss on them totaling
about $100 miltion.
The final shortage discovered by Ferranti financial investigators is the smallest - under
$50 million - and the simplest to
understand.
Since the late 1970s. Ferranti
officials say, Tech Ltd. and its
predecessor ISC companies had
been selling large volumes of
electronics - integrated circuits, antennas and other hightech communication equipment
to South Africa, a nation
shunned by many U.S. eorporations because of its racial segregationpolicies.
Those. sales were based on
Ferranti officials now are convinced the Pakistan1 contract

wasenttrely f~ct~ttous.
They say the front companies
were all controlled by Guerinand
had no ties to the CIA or South
Africa.
The contract managers, a
high-level Ferranti official says.
wcre people simply posing in that
role.
The major general either was
another impostor, paid by the
~
Perpetrators, or was a genuine rll
official mistakenly responding to
questions about a different missile project, company officials
now suspect.
All the known contract documents were fabricated for the auditors' benefit, a former Ferranti
official says, Other documents
that would have supported a real
contract are nowhere to be found.
"If you'rean accountant, everything is there for you. But the
only paper is what was generated
for the financial people." another h
$
t;$
;l-
"illegal" products
looking at whether
products were ship
biled military purp
Whatev~r
h r.~a
~..
~- .. t.
...
ranti bcgan raisi
about the Tech Ltc
ments from South i
a sudden halt.
Ferranti has wri
$50 million that it
Fcrranli-is cxnec
Durine those
Guerin and the 0th
will have an oppo
fend themselves
their explanation (
Pass contract.
Meanwhile, the c
tigation into Intet
nal's business deal
uing.
Federal author?
are working "in c
tion" with their cc
Britain's Serious :
Taking part in the
U.S. Attorney's 01
Department, IRS,
and other agencies.
An incorrect date
the speech Retire,
Richard Scott will
Lancaster Histori
about his escape frc
prisoner of war ca
rect day is Tuesdaj
New Era regrets the
Joseph C. Kauff
been re-appointed
ship roadmaster by
supervisors. A stor
day's New Era inco:
that another towr
had been named to
New Era regrets thc
3
$,irkel's o f New Y
BUXTON WALLE
I.'
iilJlllOri[l
Clutches Billfolds- French P

s
Route 340 o n The P l a ~ n& Fancy Far

O p e n Dally 9-5,Frl 9-8. Closed Sun 7~
necords seized at
local home aid probe
of Guerin-South Africa
Mekeel
!?ewTlmErastaff
Writer
Records seized at the local

home of James H. Guerin's
brother-in-law are helping federa1 investigators unravel International Signal & Control's alleged
illegalshipments toSouthAfrica,
The Wall Street Journal reported
today.
According to the Journal, investigators searching the East
Petershurg home of Carl E.
J a e k o n - Guerin's -hr
Ew - mmUnd records of a company named Gamma Systems Associates.
The house was being searched
on another case, the fraud investigation at United Chem-Con
Corp., when investigators found
those records and recognized
what they had stumbled across,
the Journal said.
"Gamma. which had mailing
addresses in New York City and

Belgium, t
u
n t~ one bt
-pal
shell companies
used in Mr. Guerin's alleged
South XlWmn smugglln
3&em;"imstTg3Tof's'd
JournaE
The Journal article also noted
that Guerin, in past years. had
cooperated with the CIA and apparently was well-known in the
intelligence agency. The Journal
said:
Guerin's ISC firm, with the
backing of the Central Intelligence Agency, once intended to
sell listening equipment to South
Africa that would track the Soviet Navy. But the plan was scuttled by the Carter Administration.
Federal investigators first
probed ISC's dealings with South
Africa 'in the late 1970s. when
'-
8.r OUERIN, Page A-5
CONTINUED FROM PAGE I
TEXT OF STATEMENT UY JAMES GUEKIN

Following is the text ofithe " ettei to the
editor" written by James H&uenn.
--.
-C.
best, in my opinion, Tim Mekeel. Mekeel has

not always been kind to me, but i ~ e ' salw:iys
been lair, accuratc and balanced. l'hcy also
have some ur~oroCessionaland irresuansible
45-'
Farewell, ~ a n & s l & ? 3 k!.k!

we're going to miss you
Our (Guerin) Family has lived in Lancaster

County (Landisville) for 20 years now. Until
recently it has been the happiest time ot our
life. We've seen our children grow up, get an
excellent education through the Hempfield
school system, participate heavily in sports
and activities, and gain a sense of moral purpose inourchurch.
I have had the opportunity to start a company here (ISC)and watch it grow to 5,500 people
(1,800 in Lancaster) before merging it wit11
Ferranti. The key people I've worked with,
and others in the Company and community,
have been instrumental in the success we have
known and I have appreciated them very
much.
I have had the privilege to serve on numerous community boards in Lancaster along
side some of the finest people I've met anywhere.
I have not written this letter to dwell on problems, only to extend warnings and tl~anks.
Lancaster is a wonderful county. Be cautious
that its growth is plarlned carefully - it slill
does not fullv address the future. Make the Fine
organizatiois of Lancaster and, in particular,
the Urban League and SACA a more integral
partof this planning process.
In our American cycle that occurs when
proble~nsand accusations arise, many seem to
"convert" or return to the Church when troubles hit them. It is significant to me that I have
been a practicing Christian for three decades
and i t forms the center of our family life and
strength.
Our family is immensely grateful for all that
Lancaster has done for us and in return we've
doneour best togive backto Lancaster.
More recently, we have Sound how onpredictable life can be. Wllat took 11s20 years to
build has been significantly undermmed in
just 20 days. There a r e lessons in this for all of
us.
I have helped 15 small companies to slart up
over the years. Eleven of these have done fine
while four have failed. Of these 15 com~)?nies,
four had significantly minoritv ownersh~trand
onlv IlCC
- - - of these four has failed. I worked
cxtt*nsivt81)i s 1111 ~ n n l u r i t ~in
r sk:ast 0:1kl;1nOin
the 6b's through h program u irh I.ucklle3c~dlo
oromote
iob o ~ o o r t u ~ ~ i lfor
i e s those hard-tor
- ~-~
employ ihrough job training ,and minority
business assistance. After movllrg to Lancast--.,
e r 1- .knnt
IID
..-~.
.~r t,his
. . interest in the development
of opportunities for minorities,
Jim Christian chose to appolnt me thc "mas-
that Tom F1annii.v is almost as bad. In a re-
ager) s a ~ dthat: Thornas states he never told

him such a thing and has a witness to prove it.
Fact: I resigned from the Board as my idea to
support a Leveraged Buy Out which I had to
forestall myself, partly due to distorted newspapercoveragc inLancaster.
Recently, the Intel1 Journal (Flannery)
transmitted all of his stories on IiCC and Clark
to a Ft. Myers newspaper where Parent is
moving. This t~arassir~g
action is arfecting the
ability of a lot of guod people to earn a decent
living. The prosecutors have stated that 1 am
not evt:n a subject in the UCC investifiation.
Rut Flannery keeps on. Where's the fairness'?
Whrre's thedccency?
My "rnastcrrnintling" of Christian has bcert
refuted by a number of responsible people
(Crurnp, Szczesny, 2 other UCC managers,
etc.) but lliese irresponsible reporters keep
repealing the same quote from Christian tach
time a story appears. It 1s as if these reporters
choose to ignore what these responsible ~!eo~rle
have said in favor of me, by just cont~numgon
withChristian's sideof thestory.
I have been saddened somewhat by the lack
of protest to Mr. Christian's quotes by the
many who understood the story a t UCC, such
as UCC I.cgal Counscl, Meridian Bank, and
others. However, I do understand how o n ~ i nous a "loose can~ron"such as Chrlslian can
appear lothesc people. So beit.
Mix in to t.lris the great damage a trusted
ingldc corpc~ratelawyer can do when he decides to exj~loillliat trust. You have a n~ighty
tense situatiol~i n d c d .
I will continue w ~ t hmy policy not to answer
to the newspapers. I will be gqne from 1,ancaster. 1 woncler who these few ~rresponsiblereporters will scrve upnext on a platter?
The folluwing quotation has served me well
over the years:
Remember. people a r e t~nrcasonable,
illogical ar~dself-centered.
Love tlterr~arlyway.
if you^ do good, people ii~illaccuse
you ofselfish ulterior rnotiues.
Do good anyway.
1fyou'l.e s~tccesqft~l,
yozc'll wiizfalse
fiietlds u n d ~ n a l t etlrie enciities.
Try to succeed anyway.
termind" behind his UCC malfeasance. This
simply not true. Aiather teaches hisson how t0
&liesty o n d f ~ a ? r k n e s1ci:illget
s
You
use a gun to go hunting. In later years, the son
nowllere; t h e y mu.ke y o u u u l r ~ e r ~ b ~ e .
--..rAom someone with a gun. The son blames
Be hones1 a n d f m n k ar!yWa?l.
r - i t i ~ f ~ t osenh'~~
'.,-,4sxnr
hntt th<?tirollo.u?
~~
~~
&-
LANCASTER 1\II
i 112th Year- NO.35,331
METROPOLITAN
/-A+70
LANCASTER, P A . , WEDNESDAY, JANUARY
for $500-a-plate Haig dinner.
Guerin: Clark said he could

I put me in prison for 50 years
lll@al fund
reportedly
to Haig by
Schrelber
!?ewErnest
Era Stan Wrller
Former defensecompany chief

James H. Guerin has testified
that his ex-attorney claims "he
has enoughon me to put me away
for50 years!'
(;uer~nhays he agreed lo pay
$2 75 m ~ l l ~ o"blackmail"
n
after
that threat and because of concern about uthcr thrcats to his
employees and his company's refinancing plan.
In a detailed account of his
"vivid and burning" memory of
the
blackmail
demand,
, alleged
!~.
8..
-.:J
0 . -.:,I:..A
employees and a TV media consultant.

Clark refused to show Guerin
the supposed evidence of wrongdoing because Clark said he
feared for his life, Guerin testified in documents filed late Tuesday in LancasterCounty Court.
Guerin added, "He said he was
going lo keep some of the packages even after I paid him off hecause he didn't know, with the
friends that I had overseas,
whether or not I might ask some
of them to kill him.
"My response to that was, you
know, in all of this, Bill, I can't
believe
. , ., . refardles,s
~
,. of all the
'9
ney's allegations, whether true

or not, would wreck his plans to
obtain critically needed funds for
his
defense
m ~ i -~
re
-~-.
~-- e
-~~~
"When he (Clark) alleged he
had information on them. I didn't
know what information he had."
Guerin testified. "I didn't know
how valid it was.
"But I knew he could have such
information. even not knowine
what the informationwas."
The mere suggestion that his
lop legal adviser would talk
about suspected wrongdoing
"would carry enough weight so
that (financial sources) hearing
about thip would stop us" from
.~--
International 1
Control illegally re
employees who bo
ets to a 1987 fundpresidential candi~
ander Haig, acc,
court documents f
day.
James H. Guerir
tional Signal's foi
chairman, reve
reimbursement i
testimony for a !
E?Y disoute with 1
WEATHE
Partly sunn)
DetallsBack
IMlh year- No. I X X
*EDITION
*aD*,"sra
LANCASTER. PA., WEDNESDAY. JANUARY 2 4 . 1 W
$8
ma-
Illegal contributions to Haig allegc

V
" Guerin deposition: ISC executives got 'special bonuses' to donate

LLF~~
-"7sun
Former Republiean pre?idential esndidate ALcxander Hang reee~ved!liegal<or-
y e
camwign mntrihutlons fmm

am- H. cuertn and other lnterstional
s i m a l ~ m t ~ i c a rexp.
e
m
e
t
i d u l n g a 1987
rampalm swng thmugh
Lawaster Counv, aed i n g doeumenls filed
with the Uncalter Cmn-
'2%
Nixon and Ford and ss supreme mm-
manderofNAT0.
whonc~.a.s attorney. m e p h ~Roda.
.
sttempted to extract precise detsib on
h,thebonuses
wereealeulatedandp~td
cueti.,.
inwye,.
Joseph rite. . d v d
cue"" not to answer any further quer.
ate w i d the matter was

~ i t h i the
n
issues sumunding the employment setUemcnt dispute. saying a judge wuld
have t ~ m d e r C u c ~ ~ n t o a ~ w e e .
Haig mvld not be reached for comment
~;n~;~~fLaX&R~,"gU$,"~i
returned.
Those attending the iohster and B e d
WeUinptm dinner elso received a e Y of
Hsig's IBW book. "Caveat - Rea%m,
Duringthe deposition, Guerin

refusedmanswer numerous
questions relatingto arms
bombs to detonate larger bombs - to

China.
of the fmuduient eontrihutionstoHaigsomewhatovershsdodthe
of UK deposi-
k$,ma"
"'be
,,,, ,
, ,,,
S a l e s t ~ m i r d ~ ~ l l d ~ o ~ n t r i e s, ,
a judgment
citing his constitutionalrights a e a i ~ cwm:
t
ISC: cuetin's ~eraonal
fOav~dself-incrlmination. holdin m m n~ P a m t '"dueies Im..
nw &ban %&tinlnc; and Urban's
president and l w - t i m e O u e Mmnfidant,
M C h d A. Peek Wallegedly balklngon
; $ ~ : ~ t ~ ~ ~ f t
~ a ~ m & ~ $ ~ $ ~ ~ ~ $ & ~ $
."
~Ama&tsnworfOmIgnP"licY
m.
This wasmtlhc f b t nor the last, time
a r k elaimed O w t i n w i d him $1 milHaig a n d G u e r i n w d k i t h e i r . e l a t a n ~ Uonantheagrerment. thenped. Gueshipmu0uwbaefbaefcial.
t i o e o u n t e ~mying~~artharPvio~hted
a
ReagsnandFomipnPoU~~.~also~sldforin iPBB.awr k f m t h e politiealaffair
m v h m in lhe agmment mby the Halg-For-President committee organizedbylSCandheldatUKFwrSea. de
the daument null and void, and
JuUaUm
atoffed in art by lSC e m ~ i o N@
~ ~ sons
.
ReshmantlaaLed at Lbethen O w tha%rkhadusedmereim~odertortim
local
COP oPfieials attended the f u c t i m , r i n w d Four S e a m Sports Canpl?r. tosecu~etheagrecment.
aceording to n e u s p ~ w rreports of the the tw d e cdly nardinated a lucrauve
0~6rinetsimed~lsrLmre~taed
to tell CHRISTIANS
eventth.tralsedmmcW.WOlorHai~.
m
,e.t
ahtogmud miasUe eontnet with the 11peaplethafk+westhetargetofagmnd J
B. arlaia,
I
n
t
h
m
rewrts
a
former
1SC
BpoLes
PahsturimmmenlOlGen.Mohammad
jwy
invemgamn
into
U
k
alarms
ship
Achefording
the daummts, the wy.
made derp,te
W,I.
man '8s quoled as gsylng the eom~sny ZL~UI.H~~.
mm to south ~tricaandlad altered or m i l Y m
fabricated ISC% boob, infl.tingtheeom.
TmsdW ChwI.1
uam~ . ~ l ~ ~ k t ~ l s ~ ~ had
~ ~s kpen
~ r interest
i ~ ~in~&ig,
d ~sodt felt
h his
~ r f AndHligmmWmvi.thIXafterib
~ ~
wouid"heahe~litf0rus."
November 181 m er wlth lhe British pony's w r U l to s e a m a November 1%
crptlm" bY h n
me eontnbutims wre ,ue presidency
~
n
R.
d
Clyde
I
v
y
a
senroc
I
=
or-M
m
a
~
o
m
n
t
i
~
n
t
e
r
mrrgerwlthBtiti~hd~ense@antPemn.
Isd to rn ~ l u
%.I.
under
tive,
and
member
'of
cuenn'a
"inner
nauonal
PK
reee
v
i
n
m
~
e
(em.000
in
~~I~-WIPLC.
Hal tomor secretary of
aPn-cm cow.
white WE' rimie" o f , k y decision maker8
lepa lor
ISGbtdllcluster bamhom
Pres&,t
magan,
pms,denls
thewr-C~om~denti~edinthedem- PaUsa
tn?%
w p o o a frmaU
~ o n w ~ ~ l m
ll.
M
M
of staff vnder
in a masrive
.wp.gebepasition relat:
h t o a n r t y i o y m e n t disp t e with hmformer chief
attomy admitted u d o r
a t h he
I x execw u-urn
lives who anended the
Wa:piate dinner were ,ximhurjed hY
" W l a l bgnuus'' for*elrattendtng
wn
ty+9m.
ad
;Paper says ISC paid H

$600,000 for contract a
.-
andweapm f u w in the Repub gator6 trying to un

scofchm,emrdingtothe~rti- ofintr.gwsurmunc
Ferranti, the c
E k
-2Zkzam
Uo
.m
...,
.~
~
~ pe, embatp ~
rebins TSC: a c t i
~
Aduanced Media Group,L fd.

An Informution Technologies Company
The Advanced Media Group has recently completed one of the

most aggressive CD-ROM projects for the National Institute of
Standurdr and Technologies {NIST), of Bethesdu, Matyland a
government sanctioned technologies incubator for US. technologies at
large. The project included over 25,000 UNIX Tarfiles and u CD-ROM
of over 675 megabytes. Stan Caterbotte and John Garafolo, Computer
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information that is useful when publishing UNIX applications on CDROM. The article will appear in the Janualy iwue of DISC Magazine,
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CLIENT LIST
National Institute of
Standards & Technology (NIST)
Groller Electronic Publishing
E. Giovanetti
Dialcom
Vaghi Periodicles
Clahritas
Compaq Computers
Applied Optical Media Corporation
Commodore Business Machines
DRI/McGraw Hill
Meridian Data
Pennsytvania Blue Shield
INFO ONE lnternational
University of Montana
National Technical Information Senrice
Rochester Institute of Technology
NEC
c oluniul l'illaye Lunc

I ~ir?c~.~tt~r,
194 17601
/#hi
Amp, Incorporated
Parkway School District
H i c h i Systems Division
Department of Commerce
Mathew Bender Co., Inc.
Nortek Computers, Ltd.,
University Microfilm International
Bell Atlantic
Aspen Systems Corporation
Microsoft Corporation
Arther Anderson
PC Solutions Plus
capitol Records
Digital Audio Disc Corporation (SONY)
lngram Customer Systems
University of Hawaii at Manoa
National Bibliographic Sewice
International Business Machines (IBM)
TUTASTAT
JUTASTAT
(mLTD - CAPETOWN -SOUTH AFRICA

Registration No 1805815/07
~os1.l address: PO Box 1 0 1 3 . Kenwyn, 7780 -Physical addreas: Mercvny Crescent. W e M n , 7764
TeI(021) 191-5101 - Fax (021) 78f-5010
31 January 1991
Mr S J Caterbone
Advanced Media Group, Ltd
USA
Dear Mr Caterbone
CD-DIAGNOSTIC
Further to my letter of 17 December 1990, 1 look forward to receiving further information on
the above product at your earliest convenience. Thank you.
Yours sincerely
,
S P SEPHTON
PC SYSTEMS
TO
S.A.
--
AnERiCAN HELIX TECHNOLOGY CORP.
Aug 8, 1990
A t t n : To whaa .it m a y concerns.
Gentlemen,
We are one o f t h e biggest IBM / COMPAQ k u t h a r l z e d De:ier
Greece, and we have a s p e c l f f c enquiry f o r
in
C D - G e n e r a t i o n - S i m u l a t i o n Software w i t h t h e f o l l o w i n g requiremeilts :
1. I n p u t from magnetic tape ANSI l a b e l l e d , EBCDIC.
2. Creates d i r e c t o r y and hard d i s k i d e n t i t y h i g h S i e r r a / I s o .
3 . D i s k image e d i t o r h i g h S i e r r a .
4 . Loads new f i l e s i n d i r e c t o r i e s .
5. Controls CD ROM image c r e a t i o n .

6. t D ROM s i m u l a t i o n .
7 . Creates magnetlc tapes ready f o r mastering.
Please k i n d k y advise by r e t u r n , w i t h i n today i f p o s s i b l e ,

a v a i l a b i l i t y and p r i c e s o f such software.
Best Regards
C h r l s Giataganas
Sales Manager
PC SYSTEMS S.A. / ATHENS/ GREECE
=-S*-sis
.13CL=
--
=:
@a
HEWLETY
PACKARD
?A? Kifiaiax AvA Halandri. Athens 15231 TeI.1011fi478.524 Fax G47R.RlQ
lnterOptica Publishing Limited

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FAX MESSAGE
6 June 1990
Amdcan Helix technology Corp

h c a s t e r PA 17601
USA
Dear Sir,
We are interested in having your cornyany master n 50MB CD-ROMdisc for us and
press 750,000 duplicates of it. The discs will be i~rsenedinto magazines, so will no!
r y u i r e jewei boxes but will rcquirt soft plastic encasement. I would like to have a
quotation on what the cost for (he lot w o ~ ~bc,
l d for both 2- and 4-colour artwork.
if you q u i r e more detniled infomstio~ibefort: you can give 4 prccise quotation, please
do not hesitate to contact us; however, wc would appreciate a rough estimate in the
m m time.
Yours sincereiy,
M a i n e Winchester
hlanaging Director
ST, O n Lair Cen!re
On :an $!reel
Fop9
Kcrig
T e l (8521668 I t 1 8
F z x i 8 5 ? ) 5 4 5 n7?0
Optical Publishing Division

588 Saddleback Road
Edmonton, Alberta
Canada. T6J 423
(403) 437 5249
21 July 1990
1857 Colonial Village Ln.
Lancaster, PA
17601 USA
Dear Sirs,
A recent article in Personal Computing' I camc across a reference to your organization. I would
appreciate as much information that you could send me on your Indexing and retrieval software and
service bureau. If possible could you also include price lists and turn around times.
Sipcerely,
,-
A.R. Kruger
Chief Exec~rtiveOgicer
Size U p CD-ROM by Russ Lockwood -- July 27, 1990
I?
Statcon Street, M~tchc
V~ci.?r~o,
313"LALlrol
Carrespondence
P -.,si3::
c! CIC~ICSI
Disc ?eC!1iiOiOQIPS Ply. Lla.(111~.in Vic.)
T e l e f ax
~ m t i w a l +513
:
873 5679
Within Australia: 03 873
...................
1 . . . . . . . . . . . l l . . . . . . . . . . . . ~ . . . . . . . . . . . . . . . . . * . . . . . . . . . . . . . .
mto
W.of ~aqsei1
3 1 F . m Gt' MARKETIS
AmIm
HELIX T m
Irftf3
FaxNo.
: 0015 1 7 1 7 392 7897
m CCRPCRRTICN
: 18ch S p C 90
Cur Ref. : rrcr3251
..............................................................................
We r ~ ~ + i v & a r J , m s t r a c i o n d i s k of ybw la~ertext CD-RQM p&lishi!ig p x d d s t

laa? y e a r .
A t t h e LFw +ie had n9 piojects that were suitable for youpl-Cticulbr rnducc.
Haever, wa BLX nod inVBatigating the production of a
f u i l text hardhmk: h i c h m y be suit4 to your laser text program.
I
c l i e n t is oonsiderinq p d u c t i m of 1000 disks with quarterly c:d?tes,

mcrs2leL-a? t~ 5000 in 5 years.
W ~ l dyou advise us of t k cosrs involved i n
purchasing the p q r a m +ad pmvidiiig us with any i n f o m t i o n ttiat ~ a l help
d
u s zo mke a decision on the suitability of your p z d u c t .
&lr
The p&uct
will be bssd on a n IBM platform, full text only, w i t h a ! - ~ y p z
t s x t f a c i l i t y available.
Given this is our first project, I w u l d appreciate as much infornntion a s y>u
m11ld provils w w i t h .
I ! w k forward to
hearFng f m you.
RILHA.tcD 51sIflr9.mging D i r e c t o r
CD RCB! & ILascxiates
I -
Ins
Informac8es,
..~.~
~
Microformas e Sistemas Ltda.
SSo P a u l n ,
i 0 t h September 1790
Alller i c a n I-101 i:.: e : I l o j Corp

Market i n s D i r e c t o r
i s 5 7 C o l o n i a l V i l l a g e Ln.
u.s.4.
Gent lenien :
TMS i s a B r a z i 1 i a n conlpany, bascd i n SSo P a u l o f o r

t h e l a s t f i fter?n r e a r s , and d e d i c a t e d t o i n f o r m a t i o n !iycjtenis
consult ing,
r i c r o f i In1
services,
and
vidc)te:.:
~n~brella
opc?l-at i o n s . We a r e now i n t r ? r e s t e d i n i n c l u d i n s CD.-I?OM b1.1reau
s e r v i c e s t o o u r o f ' f e r i n g s , and have a l r e a d y i n hand a c l i e n t
who i n t h e p a s t ~ . ~ s e01d.11- s e r v i c e s f o r n > i ( : r ~ p ~ . i b
i!il,
l in9 o f h i s
vehicle parts c a t a I c ) g ~ ~ e ~ .
We a r e
searching
for
a Stateside partner
to
shortc?n t h e l e a r n i n g t i n ~ enecesciary t o r?ntel- i n t o t h i s a r e a .
Our i d e a
i s t o clo t h e r g q u i r e d e d i t o r i a l and d i g i t i n s work
lhr?re and
t h r ? ~ ? send t h e n ~ a c I , i n e . - ~ - e a d : ~ b Idea t a t o
ow
Stateside partner
f o r p r e p a r a t i o n o f t h e m a s t e r and t h e 400
c o p i e s t h e clic.?nt ~ r c ? ~ ? ~ . ~ i r b s .
Ify o u r
f i r m would b e i n t e r e s t e d i n w o r k i n g w i t h
l.~!; on t h i s and o t h e r s i l r i l a r p r o j e c t s , p l e a s e l e t us know b y
l e t t e r a t your e a r l i e s t conven i e n c e .
Sinc:erely
yours,
O p t i c a l Pub1 i s h i n s D i v i s i o n D i r e c t o r
l?l.la i s t e l a , 515 C j . 13..-21 e 0-31

04011 SSo P a u l o , SF, B r a s i l
Tel
Direct:
( @ i s ) 575-5600
( 0 1 i ) 547-6474
(011) 575-6454
OPTiCAL
M E D I A
DIVlSlON
Fax Cover Sheet
Datum / Date:
F( /n/h
Absendei: / from:
weiterleiten an: / CC:
-/qQ
der Selten (Inci. diesern Deci<blatt::

T.~ta\nu:mber of pages (ind. this cover sheet)
,Snzz!?l
Rvkn Si? bitte ehestm6glich an,falls Sle nicht alle Seiten emalten haben sollten !
If you do not receive all pages, please call as soon as posslble !
M e d l a D l v l s l o n
Eine Abteiii-~ngder / a dlvlsion of
Digital Image Systems Computertechnil< Gesellschaft mbH
Am Wlnterhafen 13
A-4020 Linz Austria
Optical
-,
.-
--
2 3 d Oct;.
90
American H e l i x T e c h n o l o q y Corp.
1857, C o l o n i a l V i l l a c i e t n .
L a n c a s t e r , P.; 17601
U.S.A.
ue-r S i r ,
.'iea r e rvorkina or! 2 p r o j e c t t h a t v d i l l r e q u i r e p u h l i s h i n q
CD-RGh: i < i s c . We b e l i e v e , yo12 o f f e r s e r v i c e s & p r o d u c t s
required for ~ubli.hir!,>
CD-RCt!: : < i s c s . 'fie w i l l be g r a t e f u l , i f you i o c l d s e n d u s d e t a i l . of y o u r s e r v i c e s and
p r o d u c t s i n c l u d i n s t h e Code Scheme you f o l l o w f o r i n d e x ir..r a n d r ~ t r i c v z l , s o t h ~ '::o
t
c a n a p p r o a c h ycu a t t h e .
r r !
'?lc . : c ~ : d l i k f : t o ,;c?t p r i c i n q of t h s s e i t e n i s
f o r cur budgetary purpose.
It w i l l a l s o h e l p us t o get
a l i s t of y o u r c l i e n t s a n d t y p e o i s e r v i c c s you h a v e
o f f e r e d t h ~ m5n t h i s a r e a .
R e p r i n t s of r e v i e t v a r t i c l e s
on your proc!ucts w i l l be o f o r p a t h e l p t o u s .
d
,-c e a r l y r e n l y "\)ill
be h i q h l y ~ ~ n r e c i a t e d .
T h a n k i n g ycu.
Yours s i n c e r e l y ,
p z d i i i ~ ;\en
Principal Scientist
Indian Institute for Research in Information Sciences

H 4 ! l i 9 Safdarlung Enclave. ~ r Glhi
w
110!11') lN1)lA Tclrphunr' - 687221 1 Trie,
: 1 1 3 l - 7 ? 7 4 1 IRIS IN
Northwest
Territories Culture & Communications
August 20, 1990

Lancaster Pennsylvania 17601
Attn: Stan J. Caterbone
Dear Stan;
I wanted to thank you for the information which you supplied to me. It
was of great assistance and I look forward to being able to pursue the
matter of CDROM at a later date. As I mentioned to you over the phone, the
Government of the NWT is not ready at this time to invest money into this
system. We firmly beleive that this is the way to go but it will take time
for us to implement. I will get back to you as soon as funds are made
available to us to continue. In the meantime, again thank you for your help
and hopefully we will talk again soon.
Al Granger
Territorial Printer
Government of the Northwest Territories Vnllowknife N w T Cnnnrln Y l A 71 0
SOCIEDAD E S T A W
PARA LA EJECUCION
DE PROGIWMAS
DEI. QIJINTO C E N T E N M O
American H e l i x
A l e x a n d r i a VA
5 t h March, 1990.
U.S.A.
Dear S i r s ,
May we k i n d l y t a k e t h i s o p p o r t . u c l t y t o ! n t r o d u c e o u r s e l v e s .
We a r e an i n t e g r a l p a r t o f t h e "Sociedad E s t a t a l Q u i n t o C e s t e n z r i o " ,
~ l i i i l ?i s c u r r e n t l y s o r k i n g on inany p r o j e c t s c o m n ~ m o r a t i n g t h e d i s c o , ~ e r y
c f America 500 y e a r s ago.
31ir p r o j e c t f r p a r t i c u l a r i s sa'11ed "530 Years r
, af?d i t s sge::Fic
c i m i s m a i n l y t h e c r e a t i o n o f an i n r e r s c t ! v e o p t i c a l i n f o r m a t i o n system
eiicc3passi ny an e x t e n s i YE rh!:ge o i l ! ~ f o r m a t i o r l l i ~ c c r p o r a t ~ n gt h e
rrinjority o f South America arid P a r t s o f Europe.
!+e b e l i e v e y o u w i l l
be r u r ! n i n g
specific
s e ~ i i l n a r s on
the
follo'dlng
s:~bjects:
implement in^ CD-ROM Technoiogy ( 1 8 t h t o 21st June, i99n)

lmplementlng
i n t e r a c t i v e Video Technology ( 1 4 t h t o 1 8 t h IKay,
1990)
Implernentlng L a s e r d i s c Technology ( 1 8 t h t o 1 9 t h A p r i l , 1 9 9 0 ) .
';c,j'd hr. e x t r e m e l y ' p t e - i ! ? t p d : n r e c e f v i : ! 9 s i l t . s t b c i c i a1 !nTc;!-nation

r e i a t e d t o i t s c o n t e n t s , and w u ! d be g r a t e f u l i f y c u c o u i d l e t u s have
a summary o f t h e main p o f n t s d i s c u s s e d I n y o u r s e ~ n i n a r s o f 1 6 t h t o l ? t h
of Jarioary r e : 01'1 I n t e r a c t . + v e Video Technology, and on t h e 1 6 t h arid
1 7 t h c f F e b r u ~ r yr e : CD-I I n t e r a c t i v e Video. Also, i f yo^, a r e p l a n n i n g
t o c a r r y o u t any seminars on ? A S S s u b j e c t s i n t h e near f u t u r e , iue b!.:ould
be pleased t o have a l l t h e r e l e v a n t i n f o r r n a t i o ~ ~ .
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'
I
P:1.
Rt
H\,
SC
ST
SV
STAN J. CATERBONE INVESTMENT PORT

(AS OF JULY 1,1987)
DATE
LOST
ASSET
OWNERSHIP
Mortgage Banking
Activities
07/01 187
'MUTANT MANIAg
Digital Movie
& Tony Bongiovi
07/01/87
Navaho 'CHIEFTEN'
Airplane
07/01/87
09/03/87
554 Berkley Road

I, Stone Harbor, NJ 08742
I
I
i
ESTIMATED
VALUE
TOTALS
A 12% growth rate is used on all assets accruing from July 1, 1987 to January 1, 1991.
?he capital required to produce the movie "MUTANT MANIA, as seen in the budget developed and created by
California, as sent to Stan Caterbone from Arlene Davidson, Associate Producer.
STAN J. CATERBONE INVESTMENT POR7

(AS OF JULY 1, 1987)
11
1
I
3
c
ASSET
OWNERSHIP
2323 New Danville Pk.

Lancaster, PA 17547
Michael and Stan J.

Caterbone
433 West Marion Street

Lancaster, PA 17603
50,000 Shares of
Financial Management
Group Ltd., Stock
DATE
LOST
ESTIMATED
VALUE
A 12% growth rate is used on all assets accruing from July 1, 1987 to January 1, 1991.
This real estate investment was financed by Parent Federal Savings and Loan, owned by James GI
Parent Federal had filed foreclosure proceedings in November of 1987. The property was sold
before the pending Sheriff's Sale in July of 1988 for approximately $140,000 to the first offeror.
?his real estate investment was sold under duress in October of 1987 to James Warner in order tc
proceedings.
4
In the Financial Services Industry, companies with substantial distribution of financial products ano
valuation formula in order to determine value and worth. Industry statistics suggest that a companies va
Gross Commission Income generated by that company. The standard formula suggests that for every $ C
Income (GCI) Equals $ .70 to $1.00 of Equity. In June of 1987, Financial Management Group, Ltd., had re
Commission Income (GCI) of approximately $3,000,000. In addition FMG, Ltd., had recently consumrn;
of Planners Securities Group, an Atlanta based Broker Dealer, which was selected by Stan J. Caterbon
LAW O F F I C E S
SEIDEL, GONDA,GOLDHAMMER& ABBOTT,P. C.

PATENT A N D T R A D E M A R K A T T O R N E Y S
S U I T E 1800 T W O P E N N C E N T E R
PLAZA
P H I L A D E L P H I A , PA. 1 9 1 0 2
A R T H U R H. S E I D E L
TELEPHONE:(215) 5 6 8 ~ 8 3 8 3
3 O E L S. GOLDHAMMER
M I C H A E L P . ABBOTT
p~
2 5 J u n e 1987
p~
GROUP
D A N I E L A . MONACO
ROBERT H. HAMMER lil
I. I , b I 8 4
E D W A R D C. G O N D A
I 1 9 3 0 I S e 5 i
DURLiNG
S T E P H E N J. M E I E R S
AMANDA L A U R A N Y E *
NANCY A
845~218
CABLE. SIPAT
TELkCOP$ER 1 2 1 5 1 5 6 8 ~ 5 5 4 9
G R E G O R Y J. LAVORGNA
THOMAS J
TELEX
OF C O U N S E L
SYLVIA A . G o s r T o r r v l
S T A N L E Y H. Z E I H E R
RUeNER
SCOTT J FIELDS
N r . S t a n l e y Caterbone
FMG A d v i s o r y , I n c .
Eden P a r k I 1
1 7 5 5 Oregon Avenue
L a n c a s t e r , PA 1 7 6 0 1
RE:
Power S t a t i o n
Our F i l e :
7351-G
Dear S t a n :
I h a v e now r e c e i v e d t h e r e s u l t s o f a s e a r c h
p e r t a i n i n g t o t h e above s u b j a c t .
I have a l s o r e v i e w e d t h e f i l e
f o r w a r d e d w i t h y o u r l e t t e r o f May 2 9 .
The f o l l o w i n g i s my
a n a l y s i s and e v a l u a t i o n of t h e r i g h t t o u s e "Power S t a t i o n " a s
d e f i n e d below.
A s I understand the s i t u a t i o n , your b u s i n e s s c l i e n t ,
Power S t a t i o n S t u d i o , h a s , s i n c e 1 9 7 7 , o p e r a t e d a r e c o r d i n g
s t u d i o with a widely regarded r e p u t a t i o n f o r providing high
q u a l i t y r e c o r d i n g s e r v i c e s u s i n g s t a t e of t h e a r t e q u i p m e n t .
The
e n c l o s e d r e p o r t r e v e a l s t h a t Power S t a t i o n s t u d i o h a s r e g i s t e r e d
t h e t r a d e m a r k "Power S t a t i o n " f o r s o u n d r e c o r d i n g s t u d i o s .
(See
Reg. No. 1 , 4 3 3 , 3 2 8 r e g i s t e r e d March 1 7 , 1 9 8 7 . )
You h a v e a s k e d me
t o i n v e s t i g a t e t h e p o s s i b i l i t y o f Power S t a t i o n e x p a n d i n g t h e u s e
o f i t s mark i n t o m e n ' s and women's c l o t h i n g i n c l u d i n g b e a c h w e a r ;
a n d f o r a u d i o a n d vide(:, e l e c t r o n i c s f o r c o n s u m e r s a n d
professionals.
I h a v e assumed t h a t t h i s l a t t e r c a t e g o r y i n c l u d e s
radios, television receivers, video c a s s e t t e r e c o r d e r s , a u d i o
r e c o r d e r s , compact d i s c players, turn t a b l e s , amplifiers,
r e c e i v e r s , t u n e r s , c o n t r o l p a n e l s , mixing b o a r d s and c o n s o l e s ,
among o t h e r t h i n g s .
Based upon t h e r e s u l t s of t h e e n c l o s e d s e a r c h , i t i s
my o p i n i o n t h a t i t would be i n a d v i s a b l e f o r Power S t a t i o n , I n c .
t o u s e i t s mark f o r c l o t h i n g a s a f o r e s a i d .
The b a s i s f o r my
SEIDEL, GONDA,GOLDHAMMER
& ABBOTT;F! C .
Mr.
S t a n l e y Caterbone
-2-
25 J u n e 1 9 8 7
o p i n i o n i s R e g i s t r a t i o n No. 1 , 4 3 1 , 2 4 2 r e g i s t e r e d :.larch 3 , 1 9 8 7
Eor "Power S t a t i o n " .
The r e g i s t r a n t c l a i m s a f i r s t d a t e o f u s e
o f A p r i l 3 , 1986 f o r w o m e n ' s c l o t h i n g i n c l u d i n g s w i m w e a r a n d
o t h e r goods a s l i s t e d .
A l t h o u g h y o u r c l i e n t h a s a s t r o n g r e p u t a t i o n , and
a l t h o u g h i t h a s p r i o r i t y o f u s e f o r t h e mark, t h i s r e g i s t r a n t h a s
a s t r o n g p o s i t i o n f o r arguing t h a t it has superior r i g h t s f o r
women's c l o t h i n g .
One would n o t o r d i n a r i l y a s s o c i a t e c l o t h i n g i n
a n y way w i t h r e c o r d i n g s t u d i o s e r v i c e s .
Thus, your c l i e n t ' s
r i g h t s i n i t s mark d o n o t a p p e a r t o d o m i n a t e t h o s e o f t h e
registrant's.
A c c o r d i n g l y , u s e of t h e Power S t a t i o n mark f o r
women's ( o r m e n ' s ) c l o t h i n g would i n v o l v e a s i g n i f i c a n t r i s k o f
b e i n g a c c u s e d of t r a d e m a r k i n f r i n g e m e n t .
Use o f t h e Power S t a t i o n m a r k f o r c o n s u m e r a n d
p r o f e s s i o n a l a u d i o and v i s u a l e l e c t r o n i c e q u i p m e n t r a i s e s some
i s s u e s , b u t o n t h e w h o l e I am o f t h e o p i n i o n t h a t i t i s
permissible.
A g a i n , I a s s u m e , a s I have b e e n i n f o r m e d , t h a t t h e
Power S t a t i o n s t u d i o i s w e l l k n o w n a n d d o e s h a v e a g o o d
reput-ation f o r its e x i s t i n g s e r v i c e s .
Given t h a t , i t s movement
i n t o e l e c t r o n i c e q u i p m e n t s h o u l d be p e r m i s s i b l e .
Here t h e good
w i l l a s s o c i a t e d w i t h i t s c u r r e n t s e r v i c e s c a n be more r e a d i l y
extended t o audio v i s u a l e l e c t r o n i c equipment.
T h e s e a r c h r e v e a l s t h a t M a n v i l l e C o r p o r a t i o n ' s Ken
C a r y l Ranch i s t h e owner o f t h e mark "Power S t a t i o n " f o r b a t t e r y
o p e r a t e d emergency e l e c t r i c a l 2ower s u p p l y u n i t s .
S e e Reg. No.
1 , 0 4 0 , 3 0 8 r e g i s t e r e d May 2 5 , 1976 and c l a i m i n g a f i r s t d a t e o f
u s e of November 2 3 , 1970.
I n my o p i n i o n , a u d i o v i s u a l e l e c t r o n i c
e q u i p m e n t c a n b e c o n s i d e r e d t o be s u f f i c i e n t l y u n r e l a t e d t o
emergency e l e c t r i c a l power s u p p l y u n i t s t o a v o i d a l i k e l i h o o d of
c o n f u s i o n even though t h e marks a r e i d e n t i c a l .
I r e a c h t h e same c o n c l u s i o n r e g a r d i n g t h e pending
a p p l i c a t i o n by E l e c t r i c a l C o n d u c t o r s , I n c . f o r a m u l t i p l e o u t l e t
power s t r i p .
A c l o s e r q u e s t i o n is r a i s e d by G o u l d ' s S u p p l e m e n t a l
R e g i s t e r r e g i s t r a t i o n f o r Power S t a t i o n f o r m i n i a n d
microcomputers.
G o u l d ' s mark is r e g i s t e r e d on t h e S u p p l e m e n t a l
R e g i s t e r u n d o u b t e d l y b e c a u s e "Power S t a t i o n " a s a p p l i e d t o
computer equipment is considered t o be d e s c r i p t i v e .
A
Supplemental R e g i s t e r r e g i s t r a t i o n h a s none of t h e p r o c e d u r a l
b e n e f i t s of a P r i n c i p l e R e g i s t e r r e g i s t r a t i o n .
Moreover, i f
G o u l d ' s u s e o f t h e mark i s l i m i t e d t o a p a r t i c u l a r m a r k e t w h i c h
f,lr. S t a n l e y C a t e r b o n e
-3-
25 J u n e 1987
is d i s t i n c t from your c l i e n t s , t h e r e d o e s n o t a p p e a r t o b e a
l i k e l i h o o d of confusion.
T h u s , G o u l d may b e s e l l i n g i t s
c o m p u t e r s i n t o a s p e c i a l i z e d c o m m e r c i a l m a r k e t i f i t is p r e s e n t l y
s e l l i n g computers a t a l l .
Next I c a l l y o u r a t t e n t i o n t o t h e f a c t t h a t s e v e r a l
r a d i o s t a t i o n s have a d o p t e d a n d a r e u s i n g t h e t r a d e m a r k "The
Power S t a t i o n " i n v a r i o u s c i t i e s throughout t h e Unlted S t a t e s .
Conceivably, these radio s t a t i o n s could o b j e c t t o t h e
i n t r o d u c t i o n o f consumer e l e c t r o n i c s i n t o t h e i r market a r e a on
t h e g r o u n d t h a t t h e u s e o f t h e same mark i m p l i e s s p o n s o r s h i p b y
them.
I n o t e t h a t a l l o f t h e s e m a r k s were r e c e n t l y r e g i s t e r e d ,
and I s u s p e c t t h a t a l l of t h e s e r a d i o s t a t i o n s a r e r e l a t e d o r
c o m m o n l y owned.
I a l s o s u s p e c t t h a t t h e a d o p t i o n o f t h i s mark
may b e o f r e c e n t v i n t a g e .
Thus, your c l i e n t i n any n e g o t i a t i o n
w i t h t h e s e p e o p l e would have t h e a d v a n t a g e of b e i n g a p r i o r u s e r ,
and t h e r e l a t i o n s h i p between r e c o r d i n g s e r v i c e s a n d e l e c t r o n i c
e q u i p m e n t on t h e o n e hand and r a d i o s t a t i o n s e r v i c e s and
e l e c t r o n i c equipment on t h e o t h e r hand i s a t l e a s t c o - e q u a l .
Thus, your c l i e n t should have t h e dominant p o s i t i a n .
I n v i e w o f t h e f o r e g o i n g , i t i s my o p i n i o n t h a t The
Power S t a t i o n s h o u l d n o t a d o p t o r u s e " P o w e r S t a t i o n " f o r m e n ' s
a n d w o m e n ' s c l o t h i n g , b u t i t may a d o p t a n d u s e t h e m a r k f o r
p r o f e s s i o n a l and consumer e l e c t r o n i c s a s d e s c r i b e d above w i t h t h e
u n d e r s t a n d i n g t h a t t h e m a t t e r is n o t e n t i r e l y w i t h o u t d o u b t a n d
issues could arise.
I t i s , h o w e v e r , my o p i n i o n , b a s e d u p o n t h e
f a c t s p r e s e n t l y a v a i l a b l e t o me, t h a t The Power S t a t i o n , I n c .
should prevail i f those issues arise.
I f you have any q u e s t i o n s concerning t h e f o r e g o i n g ,
p l e a s e f e e l f r e e t o c a l l me.
With k i n d e s t p e r s o n a l r e g a r d s ,
Sincerely yours,
,'.
JSG:mp
Encl.
SEIDEL, GONDA, GOLDHAMMER

& ABBOTT, P.C.
SCRIPT MASTER TAPE CUE SHEET

DATE:
I TITLE:
'I
TRACK
10/12/91
TITLE
DATE
PERSONS
BEGIN
END
PA SEC I
09/29/87
ISC ALLEGATIONS
Howard Eissler
Bill Johnson
Robert Byers
Stan Caterbone
0000
0-1 6-01
0792
11-51-40
Sandra Gray
02/24/88
Sandra Gray
Stan Caterbone
0793
11-51-58
1230
20-14-00
Lanc. Aviation
07/10/87
Chuck Smith
Stan Caterbone
1236
20-14-08
1467
25-11-06
Dave Drubner
07/07/87
Dave Drubner
Stan Caterbone
1470
25-11-10
1581
27-43-26
Avalon Police
08/27/87
Avalon Police Dept.

Stan Caterbone
1582
27-43-32
1960
52-56-03
Gamillion
Studios, Inc.
07/21/87
Ted Garnillion
Stan Caterbone
Marcia Silen
04358
52-26-15
06718
56-57-00
Family
07/26/87*
Stan Caterbone
Steve Caterbone
Phil Caterbone
Mike Caterbone
Tom Caterbone
1967
End A
Robertson
07/12/87
Scott Robertson
Stan Caterbone
OOOOB
04348
SCRIPT MASTER TAPE CUE SHEET
/ DATE:
7
TITLE:
10/12/91
TRACK TITLE
Power
Station Studios
r
3
DATE
PERSONS
07116/87
Bob Walters
Stan Caterbone
0672B
56-57-10
09408
61-01-1 0
10/28/87
Howard Eissler
Stan Caterbone
09428
61-53-10
10418
64-40-1 0
Detective Bodan
Stan Caterbone
1093B
64-50-10
12628
68-18-1 0
10
PA SEC II
11
PA ATTORNEY
10/28/87
GENERAL OFFICE
TOTAL TIME OF AUDIO ON CD-ROM
BEGIN
END
LOCAL NEWS
LANCASTER, PA., NEW ERA
n national to
reading. And
:W Era Alma-
Manager acquitted of lying

I
in sale of Ferranti
stock
When the stocksalcoccurred in
by N m W e e l
New Era Staff Wnter
July 1989. Roberts wasdirectorol

Scrimaeour Vickers Asset Management.
A former London money-manScrim eour. Vickers, parent
a er was
last week On firm,
held Guer~n's32
cfarges thatBelied
million
Ferranti
shares as collatH.Guerin's stock In Fernant' In- eral on a $39 million
loan. When
the loan defaulted, Citibank
itb bank,
involved inthis case.
Meals on Wheels elects new officers
. ,,
. ..
EXAMINATION UNDER OATH OF

TAKEN BY:
ALLSTATE INSURANCE COMPANY
BEFORE:
DIANE F. FOLTZ, RMR

NOTARY PUBLIC
DATE:
JUNE 9, 2016, 9:15 A.M.
PLACE:
LANCASTER COUNTY BAR

ASSOCIATION
28 EAST ORANGE STREET
LANCASTER, PENNSYLVANIA
APPEARANCES:
MARSHALL, DENNEHEY, WARNER, COLEMAN & GOGGIN
BY: CHRISTOPHER M. REESER, ESQUIRE
FOR - ALLSTATE INSURANCE COMPANY
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
Page
Page11of
of 453
414
51
Tuesday June
July 5,
9, 2016
2
1
WITNESSES
NAME
BY: MR. REESER
EXAMINATION
5
6
7
8
9
10
11
12
EXHIBITS
13
14
CATERBONE EXHIBIT
15
1.
PRODUCED AND MARKED
LIST OF ITEMS
13
16
17
18
19
20
21
22
23
24
25
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
Page
Page22of
of 453
414
51
Tuesday June
July 5,
9, 2016
3
1
2
STANLEY J. CATERBONE, called as a witness, being

duly sworn, testified as follows:
3
4
EXAMINATION
BY MR. REESER:
Could you state your name, please?
Stanley J. Caterbone, C-a-t-e-r-b-o-n-e.
Would you mind if I called you Stan or Stanley?
Stan.
Stan, okay.
10
And my name's Chris Reeser.
You can
call me Chris.
11
All right.
12
I'm not a real formal guy.
I have been asked to
13
take a statement from you relative to an insurance claim
14
which I understood to have occurred as a result of
15
something on April 3rd of 2016, but by some correspondence
16
that I received from you, my understanding is that is not
17
the date of loss.
18
19
No.
That date is the date that I started the
spreadsheet --
20
Okay.
21
-- of the items lost or vandalized.
22
All right.
This statement is part of the process
23
of collecting information and evaluating the claim.
24
Allstate's policy, as does just about any insurance
25
company's policy, provides that part of the duty of an
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
Page
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51
Tuesday June
July 5,
9, 2016
4
1
insured is to give an examination under oath --
Okay.
-- at the request of the insured -- at the
request of the insurer, so that is what this is.
I've had --
Go ahead.
I've had -- I've collected on two or three
Go ahead.
policies with the same types of claims, and I've never been
put under oath --
10
Okay.
11
-- on the record.
12
So noted.
13
Okay.
14
And I'll ask you about that.
15
And I don't mind under oath.
16
All right.
17
I just, you know --
18
All right.
19
-- have never experienced it.
20
Okay.
22
Sure.
23
This is part of what the insurer is allowed to
21
24
25
Well --
Well, a first time for everything.
This
is --
ask of their insured.

A
Oh, I don't mind at all.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
Page
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of 453
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Tuesday June
July 5,
9, 2016
5
1
2
Okay.
Great.
So I'm going to ask you some
questions about that.
Okay.
I usually when I take these statements -- and
I've taken a couple of them -- have some information about
the claim.
claim.
Okay.
So --
10
Can I give you a brief history --
11
Go.
12
-- to put it in perspective?
13
Yeah.
14
I am a federal whistleblower.
I have very little information about this
Go.
I blew the whistle
15
on International Signal Control or ISC in 1987.
They were
16
indicted in 1991 for a billion dollar fraud and selling
17
illegal arms to Iraq.
18
1987 they --
19
I'm sorry.
20
Yes.
21
operations.
22
Okay.
23
Now, since -- I've been trying to get into
Now, I was a shareholder, and in
You were a shareholder in ISC?
They solicited me to finance some
So I'm a legitimate, bona fide whistleblower.
24
courts, hired various attorneys from '87 all the way up.
25
In 2005 I entered the federal court system as a pro se
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
Page
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Tuesday June
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6
1
litigant.
I filed my own claims.
Okay.
Okay.
Now, here's what happened.
I became a
victim of organized stalking, electronic harassment or mind
control technologies.
show you some expert testimony -- is that what they do is
they break into your home, vandalize, steal, move things
around.
policies making the same types of claims.
Now, what happens is -- and I'll
And since '05 I've collected on two or three
10
losses are not a single-day loss.
11
period of time.
Now, these
They happen over a
12
Okay.
13
And I can't give you dates as far as when what
14
was taken, when that was taken, but that's just a
15
background for your reference as far as this is not an
16
ordinary claim.
17
When you say they, who is they?
18
Well, I don't know, you know.
19
say.
20
be agents.
21
It could be neighbors.
It's impossible to
It could be police.
It could
It could be anybody.
But you believe that they are all in conspiracy
22
to punish you because of your activity as a federal
23
whistleblower?
24
25
A
that.
I'm going to refer you to documents to explain

As a victim of electronic harassment and gang
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
Page
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1
stalking, the victim -- part of the victimization is that
they break into your home.
Okay.
But you don't know who the they is?
Well, of course not.
Have you ever seen anybody in the act?
I have one person on a security camera video.
Okay.
That was in 2006.
And was there an insurance claim related to that?
10
Not to that particular person, no.
11
All right.
12
But there was a claim that year.
Harleysville
13
paid me once or twice, and there was another one.
But
14
unfortunately I'm also the victim of computer hacking.
15
These are all the reports from the past year on Geek Squad
16
and other companies reviewing and analyzing and fixing my
17
hard drives after they've been hacked.
18
Okay.
19
I filed about, oh, boy, since '06 or '07 probably
20
about four or five IC3 reports with the FBI.
21
I don't know what an IC3 report is.
22
It's an online complaint regarding anything
23
fraudulent online to the FBI.
24
Okay.
25
I've had face-to-face meetings with the FBI
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
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8
1
probably about 15 times.
Locally?
Philly and Harrisburg.
Is there a particular agent that you meet with?
No.
Could you tell me the names of any of the agents
No.
that you meet with?
No.
Okay.
10
I can verify the meetings, I mean.
11
What -- what's the reason for the meetings?
12
Complaints --
13
Okay.
14
-- about people, what they're doing to me.
15
You said you're a victim of electronic
16
harassment.
17
Okay.
18
What have been the other forms?
19
They use microwave technology, microwaves to
Now, I understand what computer hacking is.

Electronic harassment.
20
alter your brain state.
21
cause extreme pain in any part of your body.
22
create synthetic telepathy.
23
with the weapons.
24
25
It causes extreme -- they can

They can
They can essentially kill you
Now, in the 1950's the Russians used it against

our -- the U.S. Embassy in Moscow, the same weapons.
Stan J. Caterbone
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Family
Under
U.S.
Oath
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Tuesday June
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9
1
in the 1970's there was what's called the Church Committee.
The CIA had to come clean on these programs.
supposed to have stopped them, but they didn't, and that's
-- there's Senate testimony.
then was Stansfield Turner.
Senate, and they admitted to all the programs that I'm
describing.
Okay.
MKUltra was the main program.
10
How do you know that?
11
How do I know what?
12
I mean, how do you know you're a victim of
13
The Director of the CIA back

He testified before the
microwave technology to alter your brain waves?
14
15
They were
Some nights I can't walk.
The pain is that bad.
What do you mean how do I know?
16
I mean, I don't know.
17
Don't get smart with me, or I'll walk out this
I don't know.
18
door.
19
20
I'm not being smart.
I'm trying
to understand this.
21
Okay.
22
How do I -- you know, how do I know I'm not?
23
Do you ever complain about it?
24
I mean, I have pain.
25
pain.
I don't know why I have
I just -- I'm trying to understand.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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1
Listen, yesterday I filed 300 pages in the
Pennsylvania Supreme Court on a case against Lancaster City
Police and the county residents.
Okay.
There are -- there is expert testimony in here
from, one, an NSA whistleblower named Karen Stewart who
will back up just about everything I say.
from a Julianne McKinney who is a former Army intelligence
officer.
The second is
The third is from a renowned expert named Nick
10
Begich whose father was killed by someone in the Hoover
11
Administration.
12
read them.
There are transcripts in here.
You can
13
Okay.
14
You can learn all about it.
15
May I have this?
16
No.
17
Okay.
18
Or I can give you it in electronic format.
19
20
21
22
23
You can make a copy.
have a PDF around my neck.

Q
I'll give you a copy.
Well, I see that it's a Petition for Allowance of
Appeal which means that it's -A
I'm appealing a Superior Court decision to the
Pennsylvania Supreme Court.
24
Okay.
25
I'm a very successful litigator by the way.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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How --
I'm the amicus for Kathleen Kane in her criminal
case in the Superior Court in Philadelphia.
movant for Lisa Michelle Lambert.
I'm also the
Okay.
I've got three Third Circuit cases now that are
7
8
9
10
awaiting decisions.
Q
And this is an appeal from the Lancaster County
Court of Common Pleas.
I assume it went then to the
Superior Court?
11
I took it to the Superior Court, right.
12
Okay.
13
They dismissed it --
14
Okay.
15
-- two weeks before oral arguments.
16
And what happened there?
Oral
arguments were scheduled for May 24th.
17
Okay.
18
They were scheduled since January.
Both cases
19
were arguably -- I mean, maliciously dismissed two weeks
20
before oral arguments.
21
before them.
22
23
Okay.
They didn't want me to appear
Give me some background.
you worked -- maybe I misheard you.
24
No.
25
Okay.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
I mean, you said
Did you work for ISC?
You were a stockholder?
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1
Yes.
Okay.
He was a stockbroker back then.
he is?
Gib Armstrong sold me the stock in 1983.
Do you know who
Former Pennsylvania Senator.

Yeah, I'm familiar with the name.
Are you
employed right now?
No, I'm -- I collect Social Security disability
for symptoms and illnesses related to U.S. mind control,
documented, verified.
10
Huh.
11
They've been paying me since '08.
12
Okay.
13
for that?
Do they -- do they pay you by the month
Is it --
14
You never heard of Social Security disability?
15
I have.
16
Yeah.
17
Okay.
18
My first check was for $21,000.
They paid me.
19
applied in '09.
20
'05 when I declared I was full-time telepathic, but they
21
could only pay me back one year.
22
to '09 in one check, and then I've been getting monthly
23
checks ever since.
24
25
Okay.
They declared me disabled in December of
So they paid me back '08
Well, let's talk about this claim a little
bit.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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1
Okay.
I'm going to have this marked as Exhibit 1.
I have a new one here.
Okay.
Well, why don't you -- why don't we mark
-- can I take that, or do you need that?
Yeah.
No.
Okay.
We won't mark the one I have.
Here.
That's updated.
MR. REESER:
Do you want to put a sticker
(List of items produced and marked Exhibit No.
13
1.)
14
BY MR. REESER:
16
Okay.
on there?
12
15
Every day I have stuff
missing.
10
11
This is for you.
All right.
Now, I'm just going to go through
these items that you have --
17
Yeah.
18
-- listed in order from top to bottom.
19
You're
making a claim for a dishwasher?
20
Right.
21
Is this a dishwasher that was in your home?
22
Yeah, but you know -- I'm trying to think what
23
year that was actually broken.
24
Scratch the dishwasher off of that.
25
That might predate this.
The dishwasher is not being claimed, correct?
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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Yes.
Yes, let's take that off.
All right.
And I should ask you this beforehand.
I kind of lost track.
Your brief or your petition that was
filed to the Supreme Court listed an address of 1250
Freemont Street.
That's -- that's your home address?
Yes.
Okay.
No.
All right.
10
In fact, I sent a copy of the deed in with the
11
claim.
12
13
Does anybody else live there with you?
I believe I saw that, which I think there were a
number of grantees.
14
My brothers.
15
Okay.
16
No.
17
And they wouldn't be insured under the Allstate
18
But none of them live there?
policy?
19
Yeah, they're listed as other insureds.
20
Okay.
21
Yeah.
22
Okay.
23
Do any of these items -- are they owners
of any of the items?
24
No.
25
Okay.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
I purchased the policy for everybody.

Front and back door locks?
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Right.
Tell me about that.
Okay.
In July of 2015 -- yeah, July, 2015, the
benevolent Lancaster City Police Department served me with
a 302 petition, but what they did was they broke into my
house, smashed in the front door.
to pay for all the locks and the door, but they didn't.
8
9
10
Now, they were supposed
So I had to get a new front door, and I had to

get all the locks changed in the front and back door,
rekeyed.
11
Okay.
12
Mental health warrant.
13
All right.
14
I've had about eight of them.
15
do.
302 petition?
That's what they
That's part of the slander campaign.
16
What do they --
17
That's pretty routine.
18
What do they claim?
19
Well, I'm mentally ill.
20
Okay.
21
That's their -- that's their defense.
22
Is there a form of mental illness that they try
23
I make all this up.
to pin on you?
24
Oh, yeah.
25
What?
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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Which one do you want?
Oh, there's been more than one?
Bipolar, schizophrenic, delusional disorder, you
4
5
6
What year?
name it.
Q
Okay.
Were you hospitalized or
institutionalized --
Oh, yeah.
-- as a result -- as a result of this one, the
one in July?
10
Oh, yeah, Fairmont.
11
For how long?
12
Oh, that was about five -- eight days, I guess.
13
And how did that end?
14
They always -- they give me a hearing.
15
Then they
have to release me.
16
Okay.
17
They're always pretty much the same.
It started
18
in '87.
19
Harbor Beach Patrol.
20
was making a movie with Tony Bongiovi who owns Power
21
Station Studios, one of the world's most famous recording
22
studios.
23
The first one was was somebody called up the Stone

My resume's in there.
In 1987 we're making a movie.
24
for an office down in Stone Harbor.
25
the movie in New Jersey on the boardwalk.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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But in 1987 I
I rented a home
We were going to shoot

Somebody called
Tuesday June
July 5,
9, 2016
17
1
the Stone Harbor Police Department and said I was running
to the beach to kill myself, totally made up, fabricated.
That's how it all started with the mental illness.
Okay.
Okay.
Smashed in your front door?
Oh, yeah, with -- like a drug raid.
So going back to the door for a second --
I stood
there and took pictures of them as they came through.
Do you actually have the pictures?
10
Oh, yeah, it's part of it.
11
Part of?
12
The -- they're in here.
Oh, let me see.
No, they're in this one.
This one.
No.
Where
13
are they?
These
14
are black and white.
15
pages.
16
only reason you could do that is if someone -- is if you
17
knew that someone was in there with a gun to their head.
18
was in -- I was in the upstairs window talking to them
19
trying to get them to get away from me quite honestly.
They're hard to see, but the next two
Totally illegal what they did.
The only way, the
20
Okay.
21
I filed a lawsuit against Lancaster City Police
22
in '08.
It's a federal lawsuit.
23
one of the documents I have here.
In fact, that's part of
24
Is that still ongoing?
25
I withdrew without prejudice because of the
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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1
computer hacking, so I can re-file, go back to it any time
I want.
Okay.
Most of my lawsuits I withdrew without prejudice.
5
6
I just couldn't litigate with all the hacking.

Q
Can -- do you have any photographs that show the
damage to the door?
I mean, I see a door that's open.
see a police officer --
Yeah.
10
-- apparently standing there.
11
Yeah.
12
Okay.
13
In fact, I bought the door at the Habitat reuse
Yeah, I do.
14
it store.
But what happened was they charged me like $400
15
to change all the locks.
Wizard Lock did it.
16
Do you have -- do you have the receipt for that?
17
Yeah, I could dig that up.
18
You don't have it with you right now?
19
No.
20
You bought the door -- I'm sorry -- Habitat?
21
For Humanity.
22
Habitat?
23
Habitat for Humanity.
24
Oh, Habitat for Humanity.
25
The reuse it store.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
I'm a little hard of hearing.
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Reuse it.
Out on Old Philadelphia Pike back behind
Greenfield.
door than was on there.
The door looks brand new, I mean, a better
The door, the replacement door you bought there?
Yeah.
What about the original door, was that -- had
8
9
that been there for years?

A
No, that was done in 1996.
My mother was part of
10
the Lancaster City Homeowners Rehab or Revitalization or
11
Rehab Program where if you qualify, they'll come in and
12
rehab your home, bring it up to code and put a seven-year
13
lien on your house for the cost of the improvements.
14
year 10 -- 10 or 15 percent comes off, so if you stay in
15
the house for 7 years, it's all free.
16
I see.
17
So the doors are part of that.
18
Okay.
19
'96 at the time.
20
And you may have said this.
21
didn't get it.
22
that -- the replacement door?
23
$20.
24
$20?
25
Yes.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
Each
I apologize if I
How much did you actually pay for the door
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1
But it cost you 400 to get the locks replaced?
Yeah.
And that was done again by?
Wizard.
Wizard.
Locks.
And you can get me the receipt?
Yeah.
And my question about that was going to be did
Yeah.
10
you report this to the police, but I guess given the
11
circumstances --
12
Here's the situation.
I've -- I've been
13
reporting to the police ever since it started, but usually
14
they're part of the program.
15
complaints.
16
to sue them.
17
Okay.
18
I have letters which are a part of the documents
They won't take my
I mean, I had to sue them.
That's why I had
19
going to the police explaining the vandalism and the
20
break-ins that they won't, you know, report on or
21
investigate or...
22
And this happened July of '15?
23
July 8th, I think, yeah, 2015.
24
July 8th, 2015, okay.
25
Was there any other damage
done, physical damage to your house done --
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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No.
-- as a result of that incident?
Just the door.
Okay.
5
6
The next one I have on your list is an
Apple Video iPod.

A
Right.
What they did was I can't -- the menu
button doesn't work.
'05 or '06.
Okay.
10
I since bought a replacement for it.
11
All right.
12
Now, that iPod I bought back in 2006,
You bought -- this particular Apple
Video iPod you bought in '05 or '06?
13
Yeah.
14
Where did you buy it at?
15
I might have bought it at a Best Buy in Florida.
16
Okay.
17
Boy, 3, $400 probably.
18
Okay.
19
It's when they first came out, so the video iPods
20
Do you remember what you paid for it?
And then when did you --
were expensive.
21
Yeah.
22
No.
23
-- just an iPod?
24
Right, video iPod.
25
And then you noticed a problem with it when?
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
This wasn't an iPhone.
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This was --
Tuesday June
July 5,
9, 2016
22
1
2
The button, you can't push the button, the main
button.
Okay.
Oh, boy.
fall of '15.
Okay.
No.
-- Best Buy or a repair store?
No, you can't.
10
Why not?
11
Why?
12
I mean, if I had a problem with my iPhone and
14
I'm not going to pay to get it fixed.
15
Okay.
16
I bought a replacement.
17
Okay.
13
18
19
20
21
22
23
When did you discover that?

Let me think.
That was probably in the
Did you take it to --
No.
No.
I --
Why is that -- I'm not -- I don't
understand why that's part of the insurance claim.

A
Because it was in my house and the house is
covered by the insurance.

Q
I mean, how do you know it just didn't -- I mean,
things wear down over time.

A
I mean --
I'm telling you the truth.
If you don't believe
24
me, that's fine, but don't -- don't harass me with
25
questions.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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1
2
I'm here to ask you questions, sir.
trying to get an understanding as to -- things wear out.
I told you what happened.
Okay.
They broke it.
They broke it?
Yes, someone broke it.
All right.
It's funny.
10
One day the button works, and the
next day it doesn't.
11
Okay.
12
Right.
13
How old --
14
I've had probably three stolen.
15
Oh, it was stolen?
16
Oh, yeah.
17
Okay.
18
I don't remember.
19
20
21
I'm just
or four stolen.
Q
Okay.
Bluetooth headset for phone.
When?
In the past year.
I had three
I had to buy replacements.

Well, you list $60, and that sounds about
what the value of a new Bluetooth would be.
22
Oh, no.
23
Oh, okay.
24
Does it say three beside there?
25
No, it doesn't.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
No.
That's for three of them, I think.
Well, no.
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It says item number,
Tuesday June
July 5,
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24
1
but they're consecutive.
not a quantity.
I'm assuming that's not -- that's
Oh, didn't the quantity print out?
that.
Oh, the quantity didn't print out.
be three.
No.
Let me see
That should
All right.
I paid like 20 bucks apiece for them up at Radio
Shack.
Do you have the receipts for them?
10
I'm not going to dig up all these receipts.
11
really not.
12
is harassment.
13
14
Maybe I didn't put the quantity in.
I'm a busy guy.
I'm
I can't be -- you know, this
Does that mean you don't have them, or you're
just not going to -- you're not going to dig them up?
15
I'm not going to take the time to dig them up.
16
Okay.
17
I have all my receipts.
18
back to '80, '82.
19
Okay.
20
I document everything.
21
I have my tax returns
I'm an expert in
information technologies.
22
Where in your house --
23
I have worked all over the world for the record.
24
I did defense contracts, optical publishing.
25
of -- I was one of four companies in the late '80's, early
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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I was one
Tuesday June
July 5,
9, 2016
25
1
'90's that could manufacture CD-ROMs, me alone.
business.
were stolen?
Where did I have them?
Yeah.
It depends where I was.
Where were they stolen from?
Most likely either the bedroom which is in the
10
Okay.
I know my
basement.
Where in your house were the headsets that
In the bedroom, living room?
Yeah, the bedroom.
What do you mean?
Yeah.
11
Was there any sign of unlawful entry?
12
No, never is.
13
about that.
14
15
You'll read, the experts tell you
And I assume there was no report to the police
about these --
16
I can't report to the police anymore.
17
Okay.
Is it fair to say that with regard to any
18
of these items you haven't -- so I don't have to keep
19
asking you this, that you didn't report it to the police?
20
21
They get emails from me, but, no, there's no
official report.
22
All right.
23
The last official report I made was two thousand
24
-- was July 8th of 2015.
25
to report the computer hacking, and that night at 11:30
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
I went down to the police again
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they signed the mental health warrant on me --
Okay.
-- and gave me a bogus incident report.
All right.
The Bluetooth headsets, the three of
them were taken after that?
After what?
After the 302 petition.
Let me think.
Okay.
10
11
12
Yeah.
Yeah.
You don't have any idea who it was who
took them?
A
If I did I'd give you a name and report that to
everybody.
13
Okay.
14
Yes.
The hammer drill.

They broke it.
I'd say March 9th I started
15
my -- I'd say in March, 2016.
I'm putting on a new
16
screened-in porch on my back and a six-foot fence.
17
it worked.
18
buy a replacement.
The next day it didn't.
One day
So I had to go out and
19
How old was it?
20
I bought that one -- that's about the second or
21
third one they broke.
That one I bought on eBay in
22
probably -- when did I buy that one?
23
Do you still have it?
24
No.
25
Did you throw it out?
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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Maybe '08.
Tuesday June
July 5,
9, 2016
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1
Yeah.
All right.
You didn't take it someplace to see
if it could be fixed?
No.
What did you buy it for, how much?
How much?
How much.
Oh, boy.
9
10
That was a DeWalt.
I don't know -- $300 I think, 280.
New they're like --
I probably paid -- I
think I paid 60 something for that, somewhere around $60 --
11
Okay.
12
-- on eBay.
13
And then did you buy a replacement for it?
14
Yeah.
15
What did that cost?
16
The replacement I bought at -- oh, the tool store
17
out there next to the off-track betting.
18
of it?
19
Harbor Freight?
20
Harbor Freight.
21
drill.
22
Okay.
24
What is it?
25
Maybe 100?
23
What's the name
Harbor Tools.
I paid I think 60 for the hammer
But you have -- you have 100 listed here,
so --
Stan J. Caterbone
CATERBONE
Family
Under
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Oath
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Maybe it was 100.
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Maybe.
Okay.
Reciprocating saw.
Yeah.
What they did was they rigged it so that
the blade doesn't stay in.
You can't use it.
It just --
When you turn it on it comes out?
Well, when you use it, it comes out when you're
sawing.
Okay.
You can't -- you can't tighten it.
10
work, but it stopped.
11
I bought that at Lowe's.
12
13
It used to
That replacement I bought -- I think
The one, the one that's broken or the one, the
replacement one?
14
The replacement.
15
Where did you buy the one that's broken?
16
Harbor Tools.
17
Harbor Freight?
18
Harbor Freight.
19
Okay.
20
23
24
25
When did
you buy that?
21
22
Just so we're on the same page.
A
'06.
'05.
Q
Oh, boy.
Let's see.
I might have bought that in
'05, '06.
Okay.
Did you use that on a regular basis or
just once in a while?

A
What do you mean on a regular basis?
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Did you use it once a week?
No.
Okay.
No.
No.
No.
No.
Did you use it --
No.
Reciprocating saws I probably used less
than any other tool actually.
I mean, a couple times?
But if I have a project I might use it a lot in a
8
9
10
11
12
two-week span.
Q
Yeah.
I mean, some people are do-it-yourself,
fixer-upper kind of people, and some people -A
Well, I used to have a contracting business in
college.
13
All right.
14
Stan Caterbone Painting and Renovating.
15
But you bought this in '05, '06?
16
assuming --
17
Right.
18
-- you were out of college by then.
19
I'm just saying I have experience.
20
21
22
I mean, I'm
I'm not just
a do-it-yourselfer.
Q
Well, no.
My -- some people do a lot of work
with their tools, and other people --
23
Oh, I do.
24
-- don't.
25
I do.
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2
Okay.
And that's what I'm getting at.
I'm
trying to understand.
I do.
I don't.
Okay.
So I could have something for ten years, and it
doesn't get any use at all.
No.
I understand.
And some people have it --
10
I use my tools.
11
-- for ten years, and they use it every day.
12
I use my stuff.
13
Fair enough.
And you got a replacement at
14
Lowe's, and you have $100 here.
15
paid for the replacement?
Is that about what you
16
Uh-huh.
17
Do you have the receipt?
18
Yeah.
19
Okay.
20
Is it fair to say you're not going to dig
that up?
21
No.
22
Okay.
23
I didn't have to for the other claims.
24
25
No.
I'm not going to do that.
I'm not
going to do it for your company.

Q
Okay.
Stan J. Caterbone
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Family
Under
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Oath
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IPhone 5C, was that stolen?
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Broken.
When?
In fact, I got scammed on that, the 5C, the end
of last year.
Here's what happened.
They broke it, right,
so I put it on eBay to sell it so someone could reprogram
it, the software.
broken on it because it functioned, everything, but the
software was not functioning.
I assumed the software was what was
Okay.
So I put it on eBay.
Right.
Somebody bought it.
10
They hacked my PayPal account.
So someone said that they
11
paid me with electronic funds.
Well, PayPal doesn't use
12
electronic funds.
13
the money.
PayPal you use your account to transfer
Right.
14
Like a Visa account?
15
What's that?
16
Or a PayPal account.
17
PayPal account.
18
Okay.
19
So what they did was they filed a claim saying
Oh, a PayPal account.
20
that I never sent them the iPhone.
I wasn't going to send
21
it until I got -- until I verified the money was in my
22
account.
23
Uh-huh.
24
But because my PayPal account was hacked, I
25
couldn't access my PayPal account.
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Right.
Now, in my
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PayPal account I had a cash balance of like $400.
went and awarded them judgment.
judgment.
So eBay
In eBay terms I'm saying
Uh-huh.
So they took the $150 or whatever selling price
out of my account, so I'm out the phone, plus the $150.
Okay.
So they scammed me.
All my accounts are hacked.
I file -- in all the courts I have electronic filing
10
privileges, Third Circuit, U.S. District Court, all the
11
state courts, the local courts.
12
which is the system where you file electronically --
Right.
My PACER account
13
I'm familiar with PACER.
14
-- I've been hacked since, oh, boy, November.
15
So
I got to run down to Philly every two weeks --
16
Okay.
17
-- to get my dockets, just to get dockets for all
18
19
20
my cases.
Q
Let me go back.
I'm -- you lost me on the phone
at some point.
21
Okay.
22
You had the phone.
23
phone?
24
Right, after it was unusable to me.
25
After it was unusable.
Stan J. Caterbone
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Oath
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You were looking to sell the
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Why was it unusable to
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you?
Because there was a software problem?
It just didn't -- it wouldn't function for me.
Okay.
So I replaced it.
of Apple.
How old was the phone?

I went to Samsung.
I got out
I had too many problems with Apple.
How old --
Apple wouldn't fix it.
Apple wouldn't do this.
They were harassing me on every -- I called customer
service about it, and they had harassed me, and I had to
10
report that, so I said the hell with it.
11
Radio Shack, and under Sprint's program they would pay your
12
old phone off if you're on a contract.
13
have a Samsung.
14
15
So I went to
So I went and now I
How old was the phone at the time that you tried
to sell it through eBay?
16
A couple months old.
17
Okay.
18
Five months old I think.
19
Was it under any warranty program with Apple
I had a warranty through Verizon, but I had to
20
21
22
or --
cut them out.
23
I don't follow you.
24
I had to get off of Verizon.
25
Okay.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
So the phone wasn't fixable; you tried to
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sell it; you got scammed on the PayPal?
Yeah.
And eBay basically ruled against you?
Yeah, I can't even access eBay.
I can't buy
anything on eBay anymore.
Okay.
I'm hacked, every -- all my online accounts.
Okay.
Banking, bank accounts, PayPal, eBay, PACER.
10
filed complaints with the FBI, the Pennsylvania Attorney
11
General's Office, everybody.
12
When did this happen?
13
What happen?
14
The phone, the attempt to sell the phone.
15
I think January.
16
Of this year?
17
Yes, '16.
18
Did you file a complaint with the Attorney
19
I think January.
General's Office or --
20
Oh.
21
About this situation?
22
I file complaints with them all the time.
23
Okay.
24
Like I say, I am the amicus for Kathleen Kane in
25
Superior Court Case 1164 EDA 2016.
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I filed an amicus brief
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May 3rd, so I'm a party to the case now.
everything to me.
They have to file
Okay.
Service me everything.
And I understand, you know, that process to some
extent, but what does it have to do with this?
it has relevance, I'm all ears.
8
9
A
the NSA.
Okay.
I mean, if
I just don't know.
In 1998 I had a meeting with an agent from
I was complaining again about things, and he told
10
me, he said, listen, Stan.
11
it's the good old boys.
He goes it's not us.
He said
This was in 1998.
12
Now, when Kathleen Kane started in the press,
13
she's been saying that the good old boys are behind her
14
problems.
15
stated for the record what the NSA agent told me about the
16
good old boys and how it relates to what she was saying.
So November 12th I wrote her a letter, and I
17
Uh-huh.
Okay.
18
She replied back the next day, said she'd keep my
19
information on file.
Ever since then from November till a
20
month or so ago I'd go up there every two weeks and deliver
21
documents to Strawberry Square to the Attorney General's
22
Office.
23
Okay.
24
I finally thought, you know what, I'll put screen
25
Tell me about the screen door locks.
door locks on on my screen doors.
Stan J. Caterbone
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Family
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Oath
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Uh-huh.
It didn't stop anything.
They'd work.
Are they still there?
I had to replace one or two of them.
Did you do that yourself?
Oh, yeah.
Do they work now?
Yes.
They'd break them.
They wouldn't work.
Well, supposedly.
I mean, one time they
10
didn't work.
11
Okay.
12
Lowe's.
13
For $30 it looks like?
14
Yeah.
15
Yes.
16
That was within two months ago.
17
Okay.
18
19
Where did you buy the replacements?
Is that what's on there?

Okay.
When did you replace them?
Sleepy's foam mattress.
I'm sorry.
Foam
memory mattress.
A
Here's the situation with that.
On the record,
20
I've been suffering from back pain since '87.
21
say '98 I've been going to the doctors on and off for it.
22
Last year I got a handicapped placard, and in the process I
23
used my medical reports regarding my back.
24
handicapped placard, and I got a long-term placard which
25
means it doesn't renew until 2020.
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Since I'd
So I got a
Tuesday June
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Okay.
Now, what they were doing is that aside from the
electromagnetic weapons, people were using some type of
device to put under my seats and under my bed that causes
excruciating pain.
6
7
Now, since '05 I was going up and getting laser

treatments to Leola Family Health Clinic in Leola.
Did you say Leola?
Yes.
10
Thank you.
11
Now, the doctor there, the chiropractor, he's the
12
one that signed off on my handicapped placard.
13
Okay.
14
He verified that if they -- they could be using
15
magnets.
It can throw my back out to cause pain.
16
that's what the Sleepy's is for.
17
All right.
18
Now, whether -- I mean, well, go ahead.
19
Have you actually found magnets?
21
No.
22
All right.
24
25
You ask
the questions.
20
23
So
You're not sure where they are within
the mattress?
A
I'm not sure.
No, I'm not.
No.
I'm not sure
how they do it, but they used to do it to my bicycle seat,
Stan J. Caterbone
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Under
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Oath
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my car seat, my bed.
Other nights...
3
4
Now, some nights I'm fine in the bed.
And you know when they're doing it based upon
when you have the pain?
Yes, it's the only way I know.
Okay.
What's the nature of your back problem?
Herniated disc, do you have a degenerative condition?
No.
Do you have -- I mean, you're going to a
10
11
12
chiropractor.
A
Is he -- is he treating you for anything?
I was getting laser treatments, but it stopped
being effective.
13
Okay.
14
So now the only treatment really is I'm applying
15
to Medicare.
16
house.
17
medicines.
18
19
I'm trying to get a whirlpool bath put in my
I'm trying to get them to pay for that.
Okay.
And pain
And what's the diagnosis other than -- I
mean, are you -- something other than back pain I presume?
20
I have that in here, I believe.
21
I'm going to get myself some more coffee over
22
there.
23
Water would be good.
24
I assume there's water in that pitcher.
25
Would you like any coffee or water?
If not,
I can go out and get you some.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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Let me see what document I have right here.
MR. REESER:
(Off the record.)
THE WITNESS:
with me.
BY MR. REESER:
And off the record.
No, I didn't bring my medical file
Okay.
If I know what?
If you know the answer to that question.
10
What was the question?
11
The question was what's the medical diagnosis?
12
Oh, it's a medical term.
13
That's fine.
14
15
That's all right.
I mean, if you know.
I can't.
If you don't -- if you don't know,
that's fine as well.

A
I went to -- okay.
January 29th medical -- Med
16
Express Urgent Care issued me pain medications.
17
they issued me pain medications, all for back.
18
they issued me pain medications.
19
March 23rd
May 10th
In 2009 I was receiving pain medicines from
20
Dr. Sullivan at the Abbeyville Family Clinic on Abbeyille
21
Road for back pain, severe.
22
a walker some nights.
It gets severe.
I have to use
23
I think you said you went to Leola Chiropractic?
24
Yeah, Leola Family Health Clinic.
25
Family Health
Clinic.
Stan J. Caterbone
CATERBONE
Family
Under
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Oath
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2
3
4
That's not a chiropractor.
That's a medical
doctor?
A
No, he's inside there.
It's a -- it's a facility
where they have different doctors.
Okay.
Dr. Newhart, Paul Newhart, he was giving me laser
treatments.
guess it was about laser therapy.
the NFL.
10
I saw an article in the paper in '05 or '06 I

Now they're using it for
But it was effective for a while, and then it
stopped being effective a couple years ago, so I stopped.
11
When did you buy the bed?
12
I bought the bed three months ago.
13
Where did you buy it at?
14
Sleepy's, Manor Shopping Center.
15
Okay.
16
Now, I put the bed on there.
You understand why
17
I put it on there?
Now, if you went and saw the bed, you
18
wouldn't think anything's wrong with it, but I'm putting it
19
on to document just what I'm telling you.
20
Okay.
You still use the mattress?
21
Oh, yeah.
Yeah, because it's a memory foam with
22
a -- it vibrates.
It moves in three different positions,
23
the head, the mid-section, and for my back it's great.
24
Queen size, king size?
25
Full.
Stan J. Caterbone
CATERBONE
Family
Under
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Oath
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Is that smaller than queen?
Yeah, not by much though.
So if you're not having the back issues --
Perfectly normal.
Then it's perfectly -- okay.
Yeah.
All right.
Yeah.
10
Okay.
11
Oh, which ones?
12
How many do you have?
13
How many did I have?
14
And $2,300, is that what you paid for
it?
Laptop computers.
How many are broken?
many's listed on there?
15
There's no number there.
16
Let me see.
17
How
I don't know why those quantities
aren't in there.
18
Yeah.
19
Let me see.
The policy goes -- the policy goes
20
back to '11, so it would have been one, two -- that would
21
be right.
Two.
22
Okay.
23
Two laptops, 400 bucks apiece.
24
right.
25
That's about
What kind of laptops, what brand?
Stan J. Caterbone
CATERBONE
Family
Under
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Oath
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Oh, boy.
HP.
What happened to them?
They just sabotage them.
drives and everything.
usually.
6
7
What was the last one?
Compaq.
They fry the hard
They just fry them.
That's what this document is.
Viruses
It's all in there.
So they've crashed as a result of the viruses?
The hard drives have crashed?
Oh, yeah.
Yeah.
Have you looked into replacing the hard drives?
10
It is -- cost, it's not effective.
It's not --
11
it's not worth it because by the time you pay to do that,
12
it's already outdated technology, so you're going to have
13
an old processor.
14
15
sometimes --
16
You know, it just doesn't --
No, I -- I understand.
The economics of it
So what happened, so in August of last year, the
17
last laptop I replaced, I got a one-year service for Geek
18
Squad.
19
The laptops --
20
Fixing -- fixing the one I have.
21
Okay.
22
I've been in there about 20 times.
These aren't -- the ones that the Geek
Squad's fixing, they're not the HP or the Compaq?
23
Oh, no.
24
Okay.
25
That's a Lenovo I have now.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
No.
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The HP and the Compaq, how old were those?
Within a year, a year old.
When did they crash?
Well, the last one crashed August of 2015.
one before that was probably -- let's see.
Maybe 2012.
2013.
8
9
Compaq, '15.
Probably two thousand and -- maybe '13.
or to Allstate about the one that crashed in '13 before -A
No.
11
-- last month?
12
No.
13
it in bulk.
It's too time consuming.
14
litigation.
I'm too busy trying to defend myself and
15
everything else, too busy documenting things I have to
16
document.
18
I do -- no, this is the way I do this.
Okay.
I do
I'm too busy with
The next item you have is cost to repair
computers from hacking.
19
Right.
20
Which -- are you talking about the same
21
Maybe
Did you make any report to your insurance agent
10
17
The
computers?
22
Yeah.
23
The --
24
I went to -- I went to other services after Geek
25
Squad was not performing their service effectively.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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Let me hold you up for a second now.
We talked
about the HP and the Compaq, and then you said you bought a
warranty in August to have a different computer serviced
by --
A Lenovo.
-- the Geek Squad?
Right.
Denovo?
Lenovo.
10
Lenovo?
11
L-e-n-o-v-o.
12
Is that the one that you're making the claim to
13
14
have repaired?
A
I had that serviced, yeah.
Yeah.
Yeah, I had it
15
done by the people on Harrisburg Pike there.
16
moved, right there at The Grille there, near the campus.
17
forget what his name is.
18
Near F&M you mean?
19
Yeah, The Campus Grille.
He had a computer
20
repair shop in there, but he just moved.
21
out to Liberty Place or somewhere.
22
And you paid $400 for that?
23
No.
24
Yeah.
25
Let me see.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
He just
I think he moved
That was -- to the repair?
Cost to repair computers from
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hacking.
I guess that's cumulative over the past four
years.
Okay.
That's probably what that is.

Here's what happened.
A Plus on Columbia
Avenue.
Last year I made a formal
complaint to the Lancaster DA's Office.
the detective.
goes you're going to have to do something for me.
going to have to go get a private firm, analyze your
Okay.
I met with
He goes, well, Stan, he goes, listen.
10
computer and get a report.
11
seen the detective since.
He
You're
I did that, paid for it, never
12
Okay.
13
He never returned my calls.
He never -- I guess
14
I called him out on it.
I guess he thought, you know, I
15
wasn't going to do it, or it was going to come back saying
16
there wasn't a virus in it or it wasn't hacked, but he was
17
wrong, so he flew the coop from me.
18
So the $400 is cumulative --
19
Yes.
20
-- for three different computers?
21
Three or four.
22
And this would be over how many years span?
23
Three or four years.
24
Okay.
25
Do you have the bills for any of those
repairs?
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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A lot of them are in here.
I'm sorry?
A lot of them are in here.
Okay.
No.
Why not?
You can see them right now.
Oh, sure.
I'm getting tired.
10
I had a long week, so let's
wrap this up.
11
12
items.
13
14
Could you send me copies of them?
I'm about two-thirds of the way through these
Let's make it another day then for the rest.
I've had enough.
15
Okay.
16
We can reschedule another time.
17
And I take it
I'll get a copy of the transcript?
18
I'll get you a copy of the transcript.
19
Great.
20
I would prefer to keep going.
21
No, I can't.
22
23
24
25
You don't mind breaking, do you?
I'm up since 4 o'clock most
mornings, so this is enough for me.

Q
Can you show me where those receipts are that
we've just talked about?

A
Let me see.
Stan J. Caterbone
CATERBONE
Family
Under
U.S.
Oath
Mind Control
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Save you and me some time.
Okay.
In the folders that you're looking at right now,
That's $160.
are those copies of your receipts?
5
6
Here's one.
These are the copies of the reports from the
technical people.
Okay.
The Geek Squad was a one-time fee.
A Plus.
Okay.
Here's A Plus.
10
receipt.
11
Avenue.
12
service, the Geek Squad.
13
computer.
14
them where I got them.
Let's see.
Here's
Now I got to find the
This is what they wrote.

Okay.
Okay.
That's on Columbia
Here's my receipt for the tech
Here's my receipt for the actual
Can I have those receipts back?
I want to put
I don't want the stuff mixed up.
15
How can I get a copy of those receipts?
16
Just take them right now and get them.
17
Ask them to copy them, you'd be all right with
19
Sure.
20
Do you have other receipts for any of these other
21
items?
22
I have 30 years of receipts.
23
Here, I mean here in this building.
18
24
25
that?
Sure.
Do you have
them with you?

A
I don't know.
Stan J. Caterbone
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1
Could you -- there was another one in there that
I was looking at.
piece of paper.
It was on an 11 -- 8 and a half by 11
Here, that was $160.
Let's see.
Let me go
through there quick and see if I can get the receipts.
Here's a receipt.
they changed my SIM card thinking that would stop the
hacking, but it didn't.
for -- that's just an in-take.
This is a Verizon.
This is a receipt, but it's not

These are the IC3 reports.
10
Let's see if the receipt's in here.
11
they're all the receipts I have.
12
Okay.
13
I believe.
14
What Verizon did was
Geek Squad.
No,
I mean, as far as the computers are
concerned.
15
And then there's no receipts in these documents?
16
Receipts for what?
17
Any of these items that we're talking about.
18
I don't know.
19
Okay.
20
I don't know.
21
I'll make copies of these.
22
I did not peruse all these files for receipts.
23
Would you like -- would you like me to make a
24
25
copy of that for your records?

A
No, I gave it to you.
Stan J. Caterbone
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1
Okay.
I'm going to have to trust you.
changing documents on me all the time.
(Off the record.)
I got people
BY MR. REESER:
Okay.
Do you want to take these and copy them and bring
them back?
Or I can mail them back to you.
Sure.
10
Well, aren't we going to continue this?
11
Actually what I have to do is I have to report
12
back to Allstate, and they let me know if they want me to
13
continue it or not.
14
15
A
fine.
Okay.
You can take them then.
Mail them back.
16
Okay.
17
You're going to get educated.
18
19
20
Yeah, that'd be
And you will not -You're going to be
a changed man, trust me.

Q
You will not do the continuation, assuming we
have one, in the courthouse?
21
Why?
22
Because it's free.
23
Why don't we do it at Allstate's office, Allen's
24
25
office?
Q
Okay.
Stan J. Caterbone
CATERBONE
Family
Under
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Oath
Mind Control
I'll see if I can arrange that.
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Or we can do it at my house.
1250 Freemont Street.
It's nice.
It's nice there.
You can come to

It's fixed up.
I have no problem with that.
All right.
I had enough of that courthouse.
Okay.
How long did this last?
Roughly an hour.
So it's about 20 after 10:00 roughly.
I don't know what time we
started.
10
That's pretty good.
11
So you want to adjourn for the day?
12
Yeah.
13
MR. REESER:
14
(The examination under oath was adjourned at
15
Okay.
Very good.
10:19 a.m.)
16
17
18
19
20
21
22
23
24
25
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1
COUNTY OF DAUPHIN
2
3
4
: SS
I, Diane F. Foltz, a Notary Public, authorized to
administer oaths within and for the Commonwealth of
Pennsylvania, do hereby certify that the foregoing is the
testimony of Stanley J. Caterbone.
8
9
I further certify that before the taking of said

statement, the witness was duly sworn; that the questions
10
and answers were taken down stenographically by the said
11
Reporter-Notary Public, and afterwards reduced to
12
typewriting under the direction of the said Reporter.
13
14
15
I further certify the said statement was taken at the

time and place specified in the caption sheet hereof.
I further certify I am not a relative or employee or
16
attorney or counsel to any of the parties, or a relative or
17
employee of such attorney or counsel, or financially
18
interested directly or indirectly in this action.
19
I further certify that the said statement
20
constitutes a true record of the testimony given by the
21
said witness.
22
23
IN WITNESS WHEREOF, I have hereunto set my hand

this 13th day of June, 2016.
24
_______________________
Diane F. Foltz, RMR
Notary Public
25
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Case 5:15-cv-03984-JCJ Document 70 Filed 06/22/16 Page 1 of 39
Stan J. Caterbone
ADVANCED MEDIA GROUP
Freedom From Covert Harassment &
Surveillance,
Registered in Pennsylvania
1250 Fremont Street

Lancaster, PA 17603
www.amgglobalentetainmentgroup.com
scaterbone@live.com
717-669-2163
June 22, 2016
THEY WANT TO KILL ME
GANG STALKING IN AMERICA

Death by a 1000 Cuts
__________________________________________________
Everyone has either personally experienced or witnessed someone else experience a
dog straining against its leash to the point where the dog is essentially taking its owner for a walk,
rather than the other way around.
Currently, America is the dog owner, and the dog taking us for a walk is the government-industrial
complex of intelligence and law enforcement agencies (the DOJ, FBI, DHS, CIA, NSA, etc.), the
Pentagon, local law enforcement agencies, and the corporate partners of those entities the
military and security contractors such as Lockheed-Martin, Pinkerton Security (now Securitas),
and Blackwater (now Puppies and Rainbows, Inc. or whatever theyre calling themselves these
days).
The dog is leading the way and dictating the pace. People familiar with gang stalking or for
that matter drone assassinations might say that the dog has slipped its leash altogether. Or to
use the taxonomy of George Orwells Animal Farm, the pigs and the dogs have formed a profitable
unholy alliance which is now almost impossible to rein in, because at the top, things are done in
secret (for national security reasons) and because jurisdictional and public-private boundaries
have been largely erased.
More than half of the employees of the NSA, for example one of seventeen intelligence agencies
are private contractors. Spying on Americans and incarcerating them are lucrative
businesses, and the privatization of such activities helps the government escape liability for
abuses of power.
In June 2013 Democracy Now! interviewed Christopher Pyle, a former military instructor who
exposed the monitoring of millions of Americans by the CIA and the Army in the 1970s and who
became the target of a smear campaign to discredit him as a result. He was asked about the NSA
PRISM scandal revealed by whistle-blower Edward Snowden.
CHRISTOPHER PYLE: Its important to note that the vice chairman of Booz Allen happens to be
Mike McConnell, who was former director of NSA and of national intelligence. There is a revolving
door between high government positions and private corporations, and this revolving door allows
these people to make a great deal more money upon leaving the government, and then being
rented back to the government in a contractor capacity. And thats part of the corruption of the
system.
JUAN GONZLEZ: Now, one of the things youve also said is that the top-secret designation is a
way tois more of a way for the government officials, the bureaucrats and the contractors not to
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be held accountable than it is to actually protect secrets that the government needs to protect.
Could you expand on that?
CHRISTOPHER PYLE: Well, yes. The Fourth Amendment of the Constitution, which protects us
from unreasonable searches and seizures, only binds the government, doesnt bind corporations.
Thats a serious problem. The reason we have privatization of prisons, in some ways, is for
governments to escape liability. They put the liability on the private corporations that run the
prisons, and they just charge their liabilities as an operating cost.
Presidents, most members of Congress, and the Department of Justice overwhelmingly defer to
the will of U.S. intelligence and law enforcement agencies and the Pentagon rather than, for
example, civil libertarians and peace activists, because thats the easiest course for them
politically. The same dynamic is at work on the local level, where it is almost always easier for
mayors and city council members and the local news media to reflexively side with the police.
Americas military, police, and intelligence expenditures and its incarceration rates dwarf those
of other countries. The city of New York reportedly has a thousand police officers assigned to work
exclusively on counterterrorism duties. That massive security infrastructure might be less
disturbing if Americans trusted their government. That is not the case though.
A Rasmussen Reports poll published in April 2014 found that more than twice as many American
voters regarded the federal government as a threat to their rights than those who viewed the
federal government as a protector of their rights.
Much of the abuse of power by Americas government has been rationalized by the need to
support The War on Drugs and The War on Terrorism, although the moral and practical
assumptions of those campaigns are constantly disproved.
In addition to being inherently violative of individual liberties, the drug war has been a massive
failure since its implementation by President Nixon (for the same obvious reasons that alcohol
prohibition was a disastrous policy). The policy is sustained by inertia, self-righteous hypocrisy,
ignorance, and the political influence of the parasitic entities which profit from it, such as the Drug
Enforcement Agency, and the incarceration industry.
In addition to the enormous social and financial costs, prohibition has had a corrosive effect on the
moral integrity of the nations police agencies. Police corruption cases involving drugs are so
common that the anti-prohibition organization StopTheDrugWar.Org publishes a weekly review of
drug-related crimes by police officers, and the group never runs out of news.
As with supporters of the drug war, apologists and opportunists who unconditionally support the
strategies and tactics of the War on Terrorism rarely acknowledge either the associated
diminution of civil liberties or the blow-back generated by the U.S. governments tendency to
throw its weight around as argued by people such as Michael Scheuer, Glenn Greenwald, Noam
Chomsky, Ron Paul, William Blum, and others. Critics are usually marginalized by the two major
political parties and by the establishment news media for daring to even question the
governments strategies and tactics.
Americas Founders would be horrified at the extent to which we have become a nation of sheep.
We routinely surrender our rights to authority figures in the name of security. The common
assumption is that Americans should assent to whatever the government demands rather than
having the government answer to the people. Americans need to reassert control over their
government; we need to train the dog to heel.
Part of the cultural problem then is that we have become docile. The other closely-related problem
is ignorance. Americans are shockingly uninformed of the activities of their government. A March
2011 Newsweek poll found that 73 percent didnt know why we fought the Cold War, and 29
percent couldnt even name the vice president. Perhaps most disturbing, 44 percent were unable
to define the Bill of Rights.
Naturally, even fewer Americans are familiar with scandals such as Operation Mockingbird, the
Pentagon Papers, Cointelpro, and MK Ultra. No one could possibly assess the plausibility of the
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reports of the counterintelligence abuses sometimes referred to as gang stalking without a
background knowledge of such examples of extreme corruption.
A passive and ignorant population is ideal for counterintelligence operations. The public is more
easily deceived, and there is a deep supply of potential snitches and perps for Stasi-style bullying
of dissidents and others.
Gang stalking (Cointelpro Version 2.0) is one of the extreme manifestations of Americas
tendency toward militarism and police state governance along with drone assassinations,
warrantless surveillance of email, the Justice Departments aggressive prosecution of whistleblowers, and countless other outrages against the U.S. Constitution.
What is happening is a modern version of the FBIs infamous Cointelpro operations. Naturally, the
tactics and disinformation are more sophisticated than that of the original program. Human
nature, on the other hand, has not changed a bit. When the activists who exposed the original
Cointelpro in 1971 finally revealed their identities in January 2014, one of them, Keith Forsyth,
explained why they felt the break-in was necessary:e
Counterintelligence activities are inherently difficult to explain to the public. They are not
impossible to explain however. Advancements in digital technology have enabled elements of the
government and their corporate cronies to engage in high-tech spying, lying, and harassment, but
they have also enabled the public to uncover what the neo-fascist rodents are up to.
Already the digital public square is filled with information and rhetoric which the government
would prefer to censor, but cannot, posted by Americans fed-up with the corruption, secrecy, and
abuses of power in the upper echelons of government and corporations. Even the federal
governments massive self-serving security apparatus and its abettors in mainstream corporate
media institutions cannot effectively monitor and control the flow of information anymore.
Dissent is harder to marginalize and censor in a digital landscape filled with whistle-blowers,
citizen-journalists, bloggers, and alternative media websites (from all across the ideological
spectrum).
Information outlets such as WikiLeaks, movements such as Anonymous, and whistle-blowers such
as Edward Snowden, have created a flow of uncensored critical information. Citizens no longer
have to wait for the New York Times to expose the next Pentagon Papers conspiracy or for the
Washington Post to expose the next Watergate scandal.
Individuals who are targets of Cointelpro-type operations (gang stalking) need to challenge the
rodents in our nations food chain, and support political reformers progressives, libertarians, and
others who defend the individual liberties of Americans against the predatory inclinations of
powerful government agencies and private corporations. Do not let America mutate any further
into a police state; it is time to push back.
__________________________________________________________
Police officials who share my views about the militarization of
law enforcement agencies
Norm Stamper, former police chief of Seattle, is an example of a cop who understands that police
in America are being used as pawns in a corrupt system of government. That analysis does not
excuse the crimes of individual bad cops, but it provides the necessary context for understanding
that even good cops are often required to function as elements of an illegitimate machine.
Here are some quotes from Stamper from a 2011 interview on Democracy Now!
There are many compassionate, decent, competent police officers who do a terrific job day in
and day out. There are others who are, quote, bad apples. What both of them have in common
is that they occupy, as it were, a system, a structure that itself is rotten. And I am talking about
the paramilitary bureaucracy.
I think the drug war, which has put police officers against young people and poor people and
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people of color, the war on terrorism, the domestic dimensions of that war, have all served to
increase the militarization of Americas police forces.
I might even add to that mix the increased privatization of the prison industry in the United
States, where people are in fact making huge sums of money on the backs of those arrested for
nonviolent drug offenses.
Radley Balko, author of Rise of the Warrior Cop, is another important voice on this issue. He has a
blog called The Agitator which is a critique of the militarization of American police agencies. Here
are some comments by police officers who agree with him.
__________________________________________________________
Exposure of corrupt and abusive policing
Police
e
St
This excellent website features aggregated news stories and commentary about police brutality,
the militarization of law enforcement agencies, corruption, bad policies, and civil rights violations.
Click on image to enlarge
Riot police at the 2008 Republican National Convention in St. Paul, Minnesota. Photograph by
Brendan Scherer
__________________________________________________________
The Boot Boys of the One Percent
People with power and wealth have always exploited the abundance of bullies in the law
enforcement industry by using them as pawns to serve their agendas.
Activist Jeremy Hammond is currently serving a ten-year prison sentence for hacking the emails of
private intelligence-security firms such as Stratfor and HBGary and exposing their role as
counterintelligence goons for corporations. Hammond said that he views most American law
enforcement personnel as the boot boys of the one percent. I could not agree more.
Clearly there are exceptions. It would be dishonest and simplistic to characterize everyone who
wears a badge or works in the private security industry as a thug. On the other hand, as one
becomes familiar with the evidence that organized stalking is widespread, it becomes apparent
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that even the law enforcement personnel who do not directly participate in gang stalking are
guilty of maintaining a cowardly silence about such crimes.
In the FBI (Americas primary counterintelligence agency), that code of silence is maintained both
by the culture of the organization and by official policies for example, the agencys exemption
from the Whistleblower Protection Act.
In the Patriot Act era in which we live, information is shared extensively among federal and local
law enforcement agencies. One of the implications of this is that your local police department
officers must know damn well that gang stalking is used as a Stasi-type weapon for controlling
individuals deemed to be excessively independent-minded or to be a potential problem for the
corporate clients of the FBI.
A negative inference about the moral character of most police officials is unavoidable.
Under American laws, when the government has legal evidence that someone is a criminal, he or
she is investigated, arrested and prosecuted. If however, certain government officials or certain
crony corporate clients of the government wish to suppress and terrorize someone for personal
or political reasons, they can target the person with illegal and secret extra-judicial punishment,
just as the communists did in East Germany, and just as the neo-fascist criminals in the FBI did
during the Cointelpro era.
Cops know this, and they remain silent about it. Americas law enforcement industry needs fewer
people like J. Edgar Hoover, and more people like Frank Serpico.
__________________________________________________________
Gore Vidal on Americas Police Agencies
The great essayist Gore Vidal sometimes wrote about the character of American law enforcement
agencies. The following is an excerpt from his 2009 essay America
Se.
Every municipality is complaining about local police forces run wild. And no one does anything
about it. And our masters are armed to the teeth and would seem more likely to fire at us instead
of at the troublemakers. I cant think of any civilized country that would allow this, from the look
of these bulky guardians of the peace, to whom no right-minded person would allow even a
slingshot to be given.
So, we are a weirdly militarized citizenry governed by the worst elements in the United States,
and something is bound to blow up, as I have felt for some time now. In my wanderings around
the U.S., I talk to people without money, without power, ordinary voters, as well as nowadays,
people maimed by war, or time, or life or whatever, and I am convinced more and more that this
is a vicious country in which the police are allowed to run amok, absolutely independent of
anyone, and that is why from time to time they are allowed to get away with murder. One
surprisingly knew that a wrinkle has been discovered in the seamless surface of our troubled
state. Policemen are seldom tried for their crimes, or indeed, held responsible for what they do,
which disturbs the peace and causes distress among the orderly.
I would suggest that the president, if he wants to be usefuland not many presidents do in my
experiencehe might as well call together a commission in response to citizens of every major
municipality in the United States who are complaining to central authority about police forces out
of control. And no one dares do anything because the police will say, Well, you know they are
acting like this because they are bad people who hate us because we are good people, rescuing
cats from trees and otherwise loved by every decent person in the land.
What the police in their ignorance have not figured out is that they have lost all credibility since
World War II. They are sort of parasites on the fringe of society and do no particular good for
anyone except possibly themselves.
A minute of Gore Vidal comments about the idiocy of undermining the Bill of Rights with the
Patriot Act.
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__________________________________________________________
_________________________________________________________
If you can help expose illegal spying and harassment of Americans by intelligence agencies, law
enforcement agencies, and private security contractors, please do so. America needs more
patriots like Daniel Ellsberg, Edward Snowden, Jeremy Hammond, Barrett Brown, Russell Tice,
William Binney, Ray McGovern, Thomas Drake, Frank Serpico, Thomas Tamm, Hugh Thompson,
Jr., William C. Davidon, John Raines, Bonnie Raines, Keith Forsyth, Judi Feingold, and Bob
Williamson.
__________________________________________________________
FightGangStalking.com
___________/S/____________
Stan J. Caterbone, Pro Se Litigant
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Freedom From Covert Harassment & Surveillance,

1250 Fremont Street

Lancaster, PA 17603
stancaterbone@gmail.com
717-669-2163
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December 3, 2009
On Wednesday, December 2, 2009 There was a "Surge" in place to harass and Gang
Stalk Stan Caterbone, like most Wednesdays in Lancaster, Pennsylvania. The use of
Electromagnetic Weapons were again used in the attack. The attacks took place at
Staples; The Dollar Store; TGIF; and the United States Post Office on Harrisburg Pike.
The computer hacker attacked the Advanced Media Group invoices for the December
posting period.
While away on Wednesday, December 2, 2009 a vandal broke the lock on the front
screen door, making it impossible to lock.
On Wednesday, December 2, 2009 (3) Posters on the Yahoo Fulton Bank Message
Board were thrown off for posting harassing messages re Stan Caterbone and
Advanced Media Group. The 3 messages were removed and Stan Caterbone received
the following letter from Yahoo:
"Dear Stan, Thank you for writing to Yahoo! Message Boards. We have received your
report of potential violations within Yahoo! Boards. We have completed our evaluation,
and have taken appropriate action as per the Yahoo! Terms of Service. For further
details about the Yahoo! TOS, you can visit: http://docs.yahoo.com/info/terms Please
know that we cannot disclose any action taken on another user's account. We're unable
to make exceptions to this rule.Thank you again for contacting Yahoo! Message
Boards.Regards, Ram Delves"
The Jessie Venture Conspiracy Show debut on True TV Comcast Cable Channel
75 at 10:00 pm featuring the first episode dedicated to exposing the HAARP
installation in Alaska anhe use of the facility for domestic attacks of Electromagnetic
Weapons and U.S. Sponsored Mind Control. The premier episode featured expert Dr.
Nick Begich and a demonstration of synthetic telepathy using a device that scientists
from Europe invented to demonstrate and simulate the HAARP weapon and how it can
place a song inside a persons mind using electrodes attached to the skin. Dr. Nick
Begich also confirmed the use of HAARP for Electromagnetic Weapons attacks to
produce behavior modification such as rage; anger; and pain. Stan Caterbone and
Advanced Media Group will post an audio recording on his Facebook.com site.
December 2, 2009
On November 30, 2009 Lynn Cross, ex wife of Jim Cross, became a friend on
Facebook.com to inform me that Dave Cross had died the day before. Dave Cross is
the brother of Jim Cross. Me, Jim and Lynn Cross worked together on a joint venture
project called Radio Science Laboratories in 1988, click here to review business plan,
and have been friends ever since. Jim Cross is a Microwave engineer. In 1994 I also
hired Lynn Cross as an administrative assistant and receptionist for Pflumm
Contractors, Inc. I was in kindergarten class with Rick Cross, brother of Dave and Jim.
And I know Mike Cross. I know all of the Cross' and was stunned at the news Dave had
died. I have been trying to get in touch with Jim Cross for the past 5 years, especially
considering my experience and torture from Electromagnetic Weapons, which are based
on Microwave Technology. However, Jim Cross has been working out of the country. In
fact Lynn Cross had also asked me of his whereabouts.
We decided to meet at the Riverside Club at 3:00 pm for a drink and to catch up. I had
not seen Lynn since the 1990's. Before I had left I emailed the Lancaster City Police
Department telling them I was going there and making sure there was no trouble,
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especially considering the assaults and stalking by William "Lefty" Plank. I knew the
Riverside Club was a hang out of bikers.
When I arrived I saw my former football coach, John Krouse at the bar and said hi.
What started out as a friendly get-together turned out to be an assault. Lynn Cross
took about 20 minutes before she started to harass and assault me. She kept trying to
challenge me on everything, telling me to change my name and move away to get
away from the locals. She insinuated that I was making the story up about mental
telepathy. And she kept telling me that this Gang Stalking, Harassment, and Torture
will never be over. I had all I could take, only had a few sips of my drink, called her an
"Asshole", picked up my briefcase and nap-sack and left the premises. I believe the
whole episode was set up with the idea of getting me arrested or getting someone to
hurt me.
November 29, 2009
Today I called the FBI at both the Washington D.C. Office and the Philadelphia office to
report Gang Stalking and both harassed me with such arrogance. They acted like they
did not know what it was.
The FaceBook experience is becoming easier however it is revealing some disturbing

information. I have found look-alikes on several pages. Lizzy Pflumm had a picture of a
girl that looked just like her, wearing a dress that she was in. It might have been the
look alike that I talked to in Square One earlier this summer. Keagan Pflumm is very
confusing at times, and he had a picture of Dick Pflumm that did not look like Dick
Pflumm. Denise Burkhardt confused me.
November 28, 2009
The perps have been stealing things from my home/office in a big way. Small things
just to really piss me off. Food, small tools, etc.,. The computer hacking still is a
problem. I have not been able to edit or add to my website for over a week. Today they
changed my email account and put a 16 font message in my signature page and
removed my signatures. For a day or so I did not know what they did, every time I
wanted to write a message I would have to delete the annoying message. It started
when I opened an email from my brother Mike, in Florida.
I really got mad at Sheryl for harassing me and posted on some of her FaceBook pages
asking if she was telepathic. I also researched and downloaded all of her U.S. District
Court actions and emailed one of her attorney's, named Patrick McCarthy of Howard
and Howard of Ann Arbor Michigan. Requesting that the situation be resolved.
Today I went to get some chemicals for my hot tub and when I went to put them in the
perps turned down the temperature to 100 and topped the hot tub off with cold water,
just to piss me off in case I used it right away after putting new chemicals in.
I went to Walmart and got 2 cans of Clear Spray Coat for the bathroom. I went and
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sprayed a test spot and it looked clear and glossy on the counter top. I went and took a
hot tub and afterwards sprayed a coat on the whole bathroom. The counter top was
dull and not anything like the test spot. I hope the perps did not use the front windows
while I was in the hot tub. Don't know how they got in my home/office to mess with
that.
November 26, 2009
Today on Thanksgiving I sent a video to Mike in Florida wishing everyone a Happy

Thanksgiving. I did not hear from anyone today, completely ignored. The perps have
been using 1252 Fremont Street to annoy and harass in the night.
I have not been posting to the FBI complaint for computer hacking, just because it got
to be too redundant.
November 21-22, 2009
The neighborhood was especially vindictive with harassment for the past few days with
1252 Fremont Street again being frequented. I also had food stolen from my kitchen.
On Saturday night they gang stalked me at Weis Markets.
November 20, 2009
Gang stalkers followed my to TGIF at Park City and people surged me with harassment
all day while I was out. Jimmy Karpathios stalked me at the Lancaster County
Courthouse after I filed 3 exhibits to Case No. 08-13373 CATERBONE v. Duke Street
Business Center, et. al., Exhibits A-46, A-47, and A-48 were filed. They were trying to
sabotage my efforts to purchase painting supplies for my project of renovating my
bathroom. The paint clerk at Home Depot harassed me.
November 19, 2009
It has been a few days of strong electromagnetic weapons, especially on my back.

Someone stole my 5 Gallon Gas Can from the back of my 1991 Dodge Dakota and
approximately 2 gallons of gasoline and siphoned my gas from my truck. I called 911
and reported the crime to police, the perps did not want me leaving on Wednesday to
go and cash my social security check, which arrived by mail.
United States District Court Judge Mary A. McLaughlin closed the Preliminary
Emergency Injunction for Relief Case No. 09-5205. The following email was sent to the
Clerk of Courts:
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November 19, 2009

To: Michele DiNapoli, Clerk of Courts, U.S. District Court for the Eastern District of PA
Re: Missing Complainant
As per my telephone calls to the Clerk of Courts and Judge Mary A. McLaughlin's Clerk today, it
pertains to the following ORDER of November 19, 2009, specifically the following footnote:
"Plaintiff's filing consists of a motion to proceed in forma pauperis and related papers. He also filed a
CD ROM titled "Preliminary Injunction". Rule 3 of the Federal Rules of Procedure provides that a civil
action may be commenced only by filing a complaint with the Court."
1. The CD ROM is titled "Complaint and Exhibits" on the top, and "Preliminary Emergency
Injunction for Relief" on the bottom. Not "Preliminary Injunction".
2. The footnote does not indicate or mention the 53 page "Preliminary Emergency Injunction
for Relief" that was captioned as such, that being a complaint. Did you receive it and did
Judge McLaughlin review it?
3. The Caption and Page 1 reads the following:
Preliminary Emergency Injunction for Relief
I, STANLEY J. CATERBONE and ADVANCED MEDIA GROUP, Complainant, appearing pro se, and
In Forma Pauperis, do hereby file a Preliminary Emergency Injunction for Relief according to F.R.C.P.
65. on this 28th day of October 2009.
The Complainant cites the following under rule 65: (1) Issuing Without Notice. The court may issue a
temporary restraining order without written or oral notice to the adverse party or its attorney only if:
(A) specific facts in an affidavit or a verified complaint clearly show that immediate and irreparable
injury, loss, or damage will result to the movant before the adverse party can be heard in opposition;
and (B) the movants attorney certifies in writing any efforts made to give notice and the reasons why
it should not be required. Upon review the court will find that it is an unnecessary and impossible
burden for the Complainant to provide notice to any of the listed parties.
Dated October 28, 2009
4. Again, why does the docket show "Allentown" for the Court?
5. Why does my address state "Conestoga" instead of "Lancaster"?
How on earth can you explain this, and how on earth are you going to remedy this problem? You
have just violated my right to due process, have you not?
Stan J. Caterbone
www.amgglobalentertainmentgroup.com
November 17, 2009
Today a poster on the Fulton Bank message board assaulted me during an exchange. I
had reported the incident to Yahoo and he was reprimanded and the post was removed.
The post reads, you just might need a Rodney King; flogging with no
cameras....................I would definitely take a few whacks....................get lost,
sir..............
Another poster responded, I am sure Yahoo knows you well. As does probably all the
businesses in Lancaster ("here comes Mr. Paranoid/ Freako/ Crazy/ Nutcase/
Obnoxious/ Lunatic again") When was your last pyschologist appointment? Are you
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taking your meds? And of course I responded, Actually, I'm glad you mentioned that.
You should have never approached that subject, but since you brought it up, I will
respond in kind.
Since the summer of 2007, during which there was a COURT ORDER by Lancaster
County Common Pleas Judge James P. Cullen and the Lancaster County District
Attorney's Office, no psychologist or psychiatrist will give me any type of evaluation,
not for the COURT ORDER, not for the Social Security Administration, and not for the
Judicial Affairs Office of Millersville University. The last time I requested an evaluation
was just a few months ago, and the same response NO. And this includes both
psychiatrists and psychologists.
Now, why do you thing that is? I tried to get evaluated for a number of reasons, in a nd above the
reasons I cited above.THEY KNOW THAT THEY WOULD HAVE A PROBLEM; IT WOULD BE A
CATCH 22. THEY WOULD EITHER HAVE TO FIND THAT THERE NEVER WAS ANY TYPE OF
MENTAL ILLNESS OR THEY WOULD HAVE TO LIE AND FALL SUBJECT TO ANOTHER LAW
SUIT.
By the way, for the record, the Citizens Commission for Human Rights that responded to my
complaints of psychiatric abuses over the last 22 years, concluded that I did suffer from Psychiatric
Abuses; not from any psychiatric illnesses. Anything else you would like to discuss?
Today I found out they ruined some frozen meat in my freezer and of course used
Directed Energy Devices on my back.
I also finally received my Windows 7 Update, after formally complaining, however,

because the Computer Hackers had rendered my DVD drive useless and inoperable, I
cannot upgrade to Windows 7 operating system from the old VISTA operating system.
They are cute.
November 16, 2009
More problems at the Capitol Copy Service in the Fulton Bank Building, downtown
Lancaster. Today is one of the most blatant problems that I have had there, since
discovering the new copy service last month. Last week I went in to have 62 pages
scanned and 2 photos enlarged and mounted on foam board. The one picture was of
my father standing with me, Phil, Mike and Tom in front of St. Joseph Church for Tom's
First Holy Communion in June of 1972. This picture discredited the lies and rumors
about my father, especially considering it was only a month before he was arrested,
and little more than a year before he was ORDERED to leave the County of Lancaster,
Pennsylvania. The second picture was of my mother and my brother Sammy in St.
Joseph Church in 1973. Another damaging picture. The black male that usually waits on
me again tried to harass and fabricate a situation that required either an arrest or a
disturbance. On the day that I first requested the service I specifically made certain
there were going to be no computer charges for either of the services. The black male
first tried to stall, after telling me it would only take 5 minutes, so that the meter would
expire on my parking spot. I, of course, sensed this and went and moved to another
parking spot in front of Fulton Bank, for another hour. He first told me it would only
take 5 minutes. Of course I recorded these incidents, for the record. On that day, he
left me standing outside before I asked when it would be finished, now it was going to
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take several hours. I told him I would come back the next day. The next day, it was not
done. The white male took me behind the counter. They already scanned the photos 2
or three times. Now, he had to mount the pictures. Of course they were not scanned
properly. I said I would come back. I had figured out the cost to be approximately
$10.00. On November 16, I returned and the black male tried to charge me over
$22.00 and started to fight with me about the computer time. I told him I recorded the
conversations, and another black male had to redo the invoice and apologize.
Another Item Stolen. On or about October 19, 2009 I was approved by Hewlett Packard
for my new free update of Windows 7 Operating System for shipment. The deal was
part of the package that went with the purchase of my Compaq Laptop Computer
purchased in early September at Office Max in the Red Rose Shopping Center,
Lancaster. As of November 17, 2009 I still have not received the update in the U.S.
Mails. Of course, the Computer Hackers do not want my system upgraded to Windows
7 because of all the problems my current Vista Operating System contains would be
wiped out.
November 14, 2009
I was at Fulton Bank yesterday, Friday November 13, 2009 at about 2:50pm. I
accessed my safety deposit box and when finished went to the teller window. The new
young white female waited on me. I wanted to make a withdraw of $90.00 cash from
my PayPal Mastercard Debit/Credit Card.
I had a balance in the account from the last two refunds from my eBay transactions
that were reversed by PayPal after ruling in my favor for receiving damaged goods.
I had done this same transaction several times at Wachovia Bank, with no fees. The
last time was on Monday. Fulton Bank refused, the teller said that the machine was
old and not all credit cards swipe through the machine correctly. I questioned her, and
said "Well Wachovia is right up the street, I'll just do it there like I always do".
Lindsay, the Spanish teller at Wachovia said that the transaction was declined due to
insufficient funds. I argued with her that I had enough of a balance in the account. All
the tellers were listening and started chiming in.I drove back home, logged into my
account, and took the attached pictures with my camera. Then I went to CVS and
printed out 3 copies, 2 4X6 and 1 5X7. I drove back to Wachovia and waited in line. A
black female identified herself as Nelson Polite's niece started to talk to me. I told her
about the time that Nelson Polite harassed and stalked me while I was working as a
pollster supporting Hillary Clinton during the May Primary at the Greek Orthodox church
across the street. I told her that minorities around here (Lancaster) give the civil rights
movement a bad name. I then handed the teller the photo and told her to give it to
"Miss Know-It-All". THEY DID NOT WANT ME TO HAVE ANY CASH ON ME WHILE
HARASSING ME AT THE SAME TIME!
The computer hacker now has corrupted the printout of my filing of this to the
Department
of
Justice.
I
use
Metrofax.com
and
the
email
sent
to
advancedmediagroup@yahoo.com does not contain the pdf of the facsimile; which
includes the civil rights complaint.
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The same is also true of the facsimile sent this morning to the U.S. Senate Judiciary
Committee, attention Senator Patrick Leahy, Chairman. The computer hackers continue
to torture me on a daily basis with these attacks. I cannot gain access to my website
host company, and they have told me they are ceasing operations as of November 14,
2009.
See the following, which may not be an authentic email:
Over the past couple of weeks, the hosting company where your sites are housed
experienced a critical network failure related to a network attack. All services are
coming back online slowly. This is completely unacceptable and it is clear that this
operation will not and cannot provide adequate service. This incident has hasten our
decision to close this site within the next 2 weeks. This will allow you enough time to
set up new accounts and migrate your sites. We have a self-service site at
shieldsweb.net that we encourage you to consider. If you are looking to host multiple
sites, we offer a Virtual private server that starts at $29.95/month. This is ideal for
larger organizations with high volumes of email and web traffic. All SiteWebMaster
operations will end on November 14th.
To: Clerk of Court's Office, U.S. District Court of Pennsylvania, in Philadelphia, PA:
Re: Errors and Delay in Filing of Preliminary Emergency Injunction and Related Requirements, Judge
McLaughlin
What is going on? List of Problems. You Could Be Indicted If This Is Malicious/Intentional On
Anyone's Part In Your Office.
1. Where is the Original Action? It is not listed on the Docket. I received a letter from you
after it was received in your Office.
2. It is Not Conestoga, PA It Is Lancaster.
3. I Certified Mailed everything to Philadelphia, not Allentown.
4. There are 47 pages to the Application for In Forma pauperis. I have never been denied In
Forma Pauperis in your courts.
Attached are all of the files associated. I want this docket corrected immediately. I will call you later
today.
Stolen Mail - On November 9, 2009 at 6:22:45 pm Clerk No. 16 of the Harrisburg Pike
Post Office in Lancaster, Pennsylvania a Certified Document containing a Civil Rights
Complaint was mailed to the Department of Justice, Civil Rights Criminal Division, 950
Pennsylvania Avenue, N.W., Washington D.C., 20530 was mailed and paid for using a
Visa Credit Card. The U.S. Postal Clerk said it would most likely be delivered in one day.
Today, November 13, 2009 the tracking system states the following: Label/Receipt
Number: 7009 1410 0001 2125 3668 Class: First-Class Mail Service(s): Certified
Mail Return Receipt Status: Acceptance Your item was accepted at 6:21 PM on
November 9, 2009 in LANCASTER, PA 17604. Information, if available, is updated
periodically throughout the day. Please check again later.
The Computer Hacker rendered the page blank. Nothing appears on the page.
The update contained the following information:
This is the first day of November that I am able to update this website. The Computer
Hackers have kept me from editing and updating this site for the past 9 days. The U.S.
This District Court is days away from issuing a Case No. for my Preliminary Emergency
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Injunction. I submitted the requested In Form Pauperis Application and Case

Management Forms to the Clerk of Courts on Thursday, November 5, 2009. It was
mailed certified from the Harrisburg Pike Post Office in Lancaster, Pennsylvania.
In the past 5 days I have taken more pain medication due to electromagnetic weapons
since the Lancaster General Hospital Pain Assault this past July when I had the
emergency surgery in my mouth.
I continue to have to take items purchased back for exchange or refunds, the most
recent were clothes purchased at Walmart last week.
There continues to be a steady stream of night time visitors to 1252 Fremont Street
while the neighbors of 1250 Fremont Street have stepped up their stalking and
harassment. The water that suspiciously appears in front of my kitchen sink has reemerged on Friday and Saturday.
The hot tub water has not needed to be re-filled for about 6 weeks. The perps stopped taking the water out
on a daily basis.
November 11, 2009
At 04:48:26 PM I mailed a Certified Document Certified Label No.

70091410000121264602 to the Clerk of Courts, United States District Court for the
Eastern District of Pennsylvania, 601 Market Street, Philadelphia, PA 19106. The
document contained filing requirements and an In Forma Pauperis Application for a
Preliminary Emergency Injunction for Relief which the Clerk of Court was awaiting in
order to Docket the new Civil Action. Today, November 11, 2009 at 2:56 AM the
Tracking No. only provides that the item was received, there is no further activity. The
postal employees at the Lancaster Post Office in Downtown Lancaster and Harrisburg
Pike have a history of stealing my intended documents and packages for delivery.
November 10, 2009
On November 9, 2009 I filed criminal complaints with the FBI and the Department of Justice Civil
Rights Division, Certified U.S. Mail No. 700914100000121264602.
Staples verified that my Rewards Check was mailed on October 19, 2009. I only received it on
November 4, 2009 after I filed the complaint. One of the neighbors probably stole it from the U.S.
Mails and put it back into my house after I filed the complaint.
Today I find that someone stole everything involving my new FREE Windows 7 Upgrade from HP.
They are really desperate in the County of Lancaster to hurt me. The cannot take much more.
Strong electromagnetic energy devices, and strong harassment and stalking. Eric Danz again was
stalking me today at the Manor Shopping Center. He was Bret Stabley's best buddy when Bret was
having his affair with Pami Pflumm back in 2001 to 2005.
Speaking of Bret Stabley, did you know:
This is what I know, at least all that I can think of right at the moment.
It all started back in 2001 when Brett Stabley showed up at the Pflumm residence in
Conestoga. He had never been down there before that time. He then started his affair with
Pami Pflumm; all in an effort to get me jealous. Then everyone jumped in and used it against
me. The sad thing is is that it did not bother me in the least. I don't know if people thought it
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was a hoax or not. Pami would tell me. She would wait for him on her back porch; he would
close McFly's and park in Safe Harbor Park and walk up the hill - then they would play house
until daybreak. Then it started that after the kids left for school, Brett would go down to the
house until he went to work, or until they came home from school.
They (Lancaster and Conestoga Community) kept badgering me with this Brett and Pami
thing. When I would leave the Pflumm's house at night, Brett would pass me on Main Street
headed to their house. They would all play these games. During the day, Pami would call me
while in bed and she and Brett would make sure I heard him in the background. Even the kids
would try to irritate me with how Brett and Pami were sleeping in the family room at night.
When I would show up for a family function, everyone would make sure that I knew Brett was
coming right after I had left. It was quite sickening. Then the situation was that when Lizzy was
old enough, Dave would take Keagan and Brett would end up with Pami and the girls;
something like that.
.
In early 2005 I remember someone remote viewing me that they were setting me up with
Sheryl Crow. I warned them that it had better be true and not a game. I distinctly remember
telling them this on several occasions. I kept thinking it was CIA. I guess they were starting to
remotely train my mind for telepathy. Anyway, I would read messages on the Sheryl Crow Fan
Forum that were personal to me, but they were under aliases. We were not communicating
telepathically. It was only a friendship, platonic. I did not know about Lance at first. It was really
not intended to be anything but friendship at first, by all parties. Then Sheryl told me that
someone tried to set us up to meet at Lilith Fair in Hershey in 1998 or 1999, whenever the tour
was there. I remember I was all ready to go to the concert and changed my mind at the last
minute.
In June of 2005 Sheryl sent me a photo, via the fan forum, of her in a blue tee shirt, she said it
was the night she was leaving the states for France in preparation for the Tour De France with
Lance. That's when I had all the pictures of Lance's kids with me. I though that Sheryl was
taking the pictures of the kids for me, at least that is what they wanted me to think. The black
ops/CIA or whoever it was kept telling me that we had to work together, but be physically apart.
I thought the work was us working on philanthropic causes. Sheryl was doing a lot of that work
back then, and I was working for years with Project Hope. The handlers were good at setting
this whole thing up.
They knew that they would eventually use Sheryl to torture me. In August of 2005 is when
Brett, Dave Pflumm, and the rest of the gang entered the picture to stop me and Sheryl from
continuing our relationship, whatever it was. A few weeks later, Lance and Sheryl got engaged.
I remember when I was in California they tricked Sheryl into thinking I was in Conestoga. That
is when they abducted her and the cult ritualism, the brainwashing; and the sexual torture
began.
These people that did all of this, probably screwed Lance up as well. I'm sure they all told him
another story about me and Sheryl.Then Brett Stabley did the same thing with Sheryl that he
did some years earlier with Pami Pflumm.The lines get very blurred as to who is who in these
games of U.S. Sponsored Mind Control. Remember what U.S. Sponsored Mind Control is. It is
the use of technology, developed and created by U.S. Departments and Agencies, now used
by who knows who.
Now, you all have my affidavit. I'm sure I could spend hours going over this. I do still have the
photos and the Sheryl Crow fan forum entries from 2005 as well as my calenders with notes
and memos to support the preceding. All secure in my safety deposit box.
Now, I could be totally wrong about who I am telepathic with. We did not start our full-time
telepathy until late 2005. This is about the same time that I was writing to Plan B, the company
owned by Bratt Pitt and Jenifer Aniston. I was trying to get someone interested in telling this
horrid nightmare. At that time Brad and Jenifer still owned the company together.
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Now, there is a reason that no one will confirm just who is telepathic with me, it would defeat
the whole purpose. The confusing element to this is that like my father, and his grandfather, I
am naturally psychic.
You all keep torturing me and pushing me; and I will keep pushing for justice and telling the
truth until I am restored to whole.
November 8, 2009 - In Summary
This is the first day of November that I am able to update this website. The Computer
Hackers have kept me from editing and updating this site for the past 9 days.
The U.S. This District Court is days away from issuing a Case No. for my Preliminary
Emergency Injunction. I submitted the requested In Form Pauperis Application and
Case Management Forms to the Clerk of Courts on Thursday, November 5, 2009. It
was mailed certified from the Harrisburg Pike Post Office in Lancaster, Pennsylvania.
In the past 5 days I have taken more pain medication due to electromagnetic weapons
since the Lancaster General Hospital Pain Assault this past July when I had the
emergency surgery in my mouth.
I continue to have to take items purchased back for exchange or refunds, the most
recent were clothes purchased at Walmart last week.
There continues to be a steady stream of night time visitors to 1252 Fremont Street.
The neighbors of 1250 Fremont Street have stepped up their stalking and harassment.
The water that suspiciously appears in front of my kitchen sink has re-emerged on
Friday and Saturday.
The hot tub water has not needed to be re-filled for about 6 weeks. The perps stopped
taking the water out on a daily basis.
Of course, they continue to torchure me with the computer hacking, at times they mix
that with mental harassment and electromagnetic weapons. I usually sound the horn
to counter these attacks.
I was continuously harassed and stalked during the early evening of First Friday at
Gallery Row on November 3, 2009. Doug Beck, is one of them. His father still lives
some 12 doors down from me. This summer he showed off his Masonic Ring to me at
Fulton Bank in the Manor Shopping Center.
Craig Roda has been around me 3 times in the past week. Is he trying to send a
message from Fulton Bank, he is the President. I don't appreciate the stalking.
My brother Dr. Phillip Caterbone has been in Lancaster since Friday, November 3, 2009;
and is leaving today. We are scheduled for breakfast this morning. He said he was
staying at the new Marriot in Downtown Lancaster.
I will try to detail these incidents in the coming days.
To: Lancaster City Police Department
October 30, 2009
Second Assault in less than a week, October 29, 2009. First Assault last Saturday morning, October 24,
2009 at Dillerville Road and Manheim Pike. Last evening at about 6:15pm I got into my truck (to meet
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Ken Rhoades, another TI who came to meet with me from Michigan from the Freedom From Covert
Harassment and Surveillance Organization, or FFCHS) at the Manor Cinema, and noticed a green/tan
GMC Jimmy parked a in front of 1244 Fremont St. It was sitting high on its wheels, and two white males
approached from the opposite side of Fremont Street, both drinking beers. I did not recognize the vehicle or
the 2 white males.
I became suspicious and drove down the block watching them in my rear view mirror. The
popped the hood and were hanging around the vehicle looking very suspicious. I turned
around in the alley on the opposite side of Fremont Street down near the end of our block and
went and parked on the opposite side of the Fremont Street at about 1247. One male was in
the drivers seat on a cell phone and the other was looking under the hood. I took out my
camera and tried to take a picture of the them using my outside mirror, so not to let them see
me.
Then 3 white males, two that live in 1242 Fremont Street, and one that keeps visiting and
says he is the brother of the tall white male of 1242 Fremont Street. This male, short dark
hair, about 5'6" and about 135lbs approached me. Now he keeps stalking me. He always parks
his car, a dark green small compact, near my house and stalks me. He always is coming and
going when I am. He comes up to my truck and asks me why I am taking a picture of his car,
which is parked right in front of me. I tell him I was taking a picture of the truck across the
street and he starts yelling at me to mind my own business. He tells me he is going to call the
police, I tell him to do that or I will and say I live right there pointing to my house. I tell him
to stay away from me and my house and he starts in a rage and comes closer and slams his
hand against my car door really loud, I sped away to the Manor Cinema and ran out of gas.
Ken Rhoades pulled up on a silver chevy pickup truck introduces himself. I was shook up and
told him what happened. I put more gas into my truck and instead of going to get Ken a hotel
for the night, I asked him to instead follow me to my house for our meeting. We first went to
Turkey Hill to get some gas, then we went to my home/office at 1250 Fremont Street and had
our meeting. After about an hour and a half we went to the Iron Hill Brewery at F&M for
dinner, then I took Ken to the Days Inn on Lititz Pike where he is staying. We will have another
meeting
today
to
film
a
video
of
Ken's
story
for
YouTube.
The occupants/visitors of 1242 Fremont Street have been a problem for me with harassment
and stalking for more than a year. The guy who used to drive the silver/maroon van who
stalked me the most, even in downtown Lancaster has not been around for a few months.
October 29, 2009
The computer hackers were caught yesterday, Wednesday, October 28, 2009 working
for the Lancaster County Courthouse and trying to stop the mailing of the U.S.
Preliminary Emergency Injunction from reaching the Clerk of Courts at the U.S. District
Court for the Eastern District of Pennsylvania in Philadelphia, Pennsylvania.
Before I had left my home/office I had downloaded several files that I needed to be
printed; all were sent to Staples via their online submission. Staples also had an order
to print the U.S. Preliminary Emergency Injunction and the Exhibits. It was also the
last day to file my Praecipe for Reinstatement for Case No. CI-08-13373 in the
Lancaster County Court of Common Pleas.
I first went to the Lancaster County Courthouse to print the necessary files from my
flash drive in the Lancaster County Prothonotary Office, as I have been doing for more
than a year. The files were not in my flash drive. The computer hacker some how
deleted the files before I ejected the flash drive from my computer at my home/office.
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The computer that I usually print from was being used by a person that started to ask
me to help him; he was harassing me and trying to distract me. Fortunately, WORD
came on the computer and I was able to write a new Praecipe from scratch and
complete the reinstatement file. However, being that the staff at Staples always tries
to harass me and change my files, I had to go back home and make a CD-ROM of the
files in case Staples tried to say the did not receive them; which they have done on
several occasions.
At Staples, every document was printed wrong, they were all printed on double-sided
paper and everything had to be printed again. However, I did get to the U.S.P.S. Post
Office on Harrisburg Pike before closing at 7:00pm and was able to mail the Preliminary
Emergency Injunction to the Clerk of Courts in Philadelphia.
The stalkers from Lancaster Catholic High School were all around me, starting at with
Mimi Tomilnson Newcomer on Fremont Street when I left; Fulton Bank, Dino Diapaolo,
the Lancaster County Courthouse, Craig Roda and Mary Glah Genovesse; Jack Scwartz
(Not of Catholic High but of Conestoga) of Friendly Taxi and Red Rose Transit; Alex
Diapaolo at the House of Pasta on Millersville Pike. For the record regarding Lancaster
Catholic High, Judge James P. Cullen and Joe Roda, Esq. were classmates a year or two
before my brother Samuel Caterbone. They all knew each other.
Today I find out that a U.S.P.S. Priority Mail Package containing the Camcorder
purchased on Ebay that did not work, was stolen from the Downtown Lancaster Post
Office. The tracking number comes up with no record indicating that the seller never
received the camcorder; which explains why he never paid me the $103.65 refund he
owes me. This is the second problem in 2 weeks with mailings from the Downtown
Lancaster Post Office on Chestnut Street; of course it figures, it is right across the
street from the Lancaster City Police Headquarters.
October 27, 2009
For the past three weeks someone has been putting water in front of my kitchen sink;
wetting the floor and my feet. There is no consistency as to when it happens, and it
appears to be from 1252 Fremont Street. I have not had any water taken from my hot
tub in the same time period. One day these bastards will fry.
Yesterday, Monday October 26, 2009 I had to take Vicodin and a muscle relaxer for the
pain. Someone also deleted my appointment in my Google Electronic Calender and I
missed my dentist appointment. I had to reschedule for today. The electromagnetic
weapons were on full force. The computer hacking is almost impossible to deal with.
On Sunday, October 25, 2009 they started to use directed energy devices and
electromagnetic weapons on my back, causing sever back pain, along with the usual
mental harassment and computer hacking. I also had some food stolen from my
house. I went to the Weis Markets to purchase ingredients, and the rest of the
ingrediants for the recipe which I already had were stolen.
On Saturday, October 24, 2009 I was Assaulted in the Streets of Lancaster. A
white male got out of his car, pounded on the passenger side door, tried to get in my
truck, and chased me through the intersection at Dillerville Road and Manhiem Pike. I
tried to stop in the middle of the intersection at a red light, and tried to get someone to
help me. I sped away to the Manhiem Township Police Department, where I wired
myself with an audio recorder. You can listen to the recording by clicking here.
The Pennsylvania Statute for Criminal Assualt and Battery is Title 18 Section 2701 to
2703, an assault/battery is committed when one person 1) tries to or does physically
strike another, or 2) acts in a threatening manner to put another in fear of immediate
harm. Many states declare that a more serious or "aggravated" assault/battery occurs
when one 1) tries to or does cause severe injury to another, or 2) causes injury through
use of a deadly weapon. Historically, laws treated the threat of physical injury as
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"assault", and the completed act of physical contact or offensive touching as "battery,"
but many states no longer differentiate between the two.
Since 2005 I have been assaulted on at least 4 occasions and law enforcement
continues to ignore this Organized Stalking and Harassment. Hopefully when I file my
Emergency Preliminary Injunction in the U.S. District Court for the Eastern District of
Pennsylvania, something will be done about this.
On the evening of Saturday, October 24, 2009 Erica Wietzel of the Lancaster County
Adult Probation and Parole Department was again stalking me. This time it was at
Jack's in Millersville. She had a friend harass me. Erica was my probation officer for
the Fleeing Charge. I have just put up a web page regarding that scandal, click
here.
October 24, 2009
Strong Electomagnetic Weapons fired on me. On Friday, October 23, 2009 the
Lancaster County Court Reporters Office had made a huge mistake. I sent them
the following email:
1. "Just how do you reconcile your accounts. The receipt is from the Court
Reporters Office yet I made the check out to you personally. Your balance sheet
would not be right. The Court Reporters Office Cash Account, which is a short
term asset, would be short.
2. Just because it has been a practice of your office does not mean it is a legal
practice.
3. She did not offer the $.30 cents back, I had to say something first.
4. I know how to validate and verify a cd-rom. If my computer was hacked to find
no data on the cd-rom, it is the same as nothing being on the CD-ROM.
5. After visiting with you today, Friday, October 23, 2009 and again leaving without
the CD-ROM you have proven your guilt; all you did was try to annoy and harass
me.
6. In addition, you stated that the transcript is on your laptop, that in no way is a
secure environment and system for court related documents.
7. See ya soon."
On Thursday, October 22, 2009 at Fulton Bank at the Manor Shopping Center I went to
my safety deposit box and wanted to download some files from my laptop to my 500GB
external hard drive in storage. There is an electrical outlet in the booth. The little
babies at Fulton Bank turned it off before I got there so I could not back-up my files. I
have done this many times at both this branch and the branch on Columbia Avenue. Of
course had the Computer Hackers not vandalized my DVD burner in my laptop, I would
not have had to do this.
Then I went to the Lancaster County Elections Office at North Queen Street to get a
copy of a CD-ROM that contains a database of all registered voters of the County of
Lancaster through the newly revised Open Records Law. The took my $20.00 check
and told me it would take a few days, which does not sound right. We'll see.
Finally, on Thursday, October 22, 2009 I went to the Lancaster County Unit Collections
Department and made my first $50.00 payment, which was due by October 31, 2009
and then to the Lancaster County Court Reporters Office with a Money Order for a
transcript of the October 24, 2007 Sentencing Hearing held by Judge James P. Cullen.
The cost as $56.70 and I had a $57.00 money order. (I was in there the day before,
gave them $57.00 cash, and after an hour gave me an excuse that all of a sudden it
would not be done until the next day. I demanded my cash back and told them I'll try
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it again on another day.) I get the paper copy and the CD-ROM of the electronic file
home and find the CD-ROM is blank, containing no electronic file of the transcript.
On Wednesday, October 21, 2009 the Lancaster Community Surged me with
Harassment and Burglaries. It started with the usual computer hacking. There
were stolen items from the U.S. mails, stolen items from my home/office, extorted
funds, stolen items from the Sears Warehouse of my items on Layaway. I did receive
my Social Security check in the mail. Of course it states on the front of the envelope
the crime and the payment date if the envelope is tampered with.
1. On October 9th, 2009 I mailed a copy of the United Nations Council for Human
Rights Complaint and CD-ROM to the Secretary of State, Hillary Clinton, to the
Department of State in Washington, D.C.. It was received and signed for on
October 14, 2009 however someone stole the Certified Return Receipt from the
U.S. Mails. Yesterday I went to the downtown Lancaster Post Office, where I
initially mailed it, and they gave me a copy of a scan that said a M. Jackson
signed for it on October 14, 2009.
2. I took my check to the Wachovia Bank branch on Manor Street to deposit before
2:00 pm and they, of course, harassed me again. I had to cash the check then
deposit the cash. They wanted to confuse me and have me deposit the check,
which would not have made the funds immediately available for my debit/credit
card.
3. Before I left my home/office I searched for my file "Sears Layaway" folder. It
contained the receipts of payments for an air compressor and 4-piece Driver
Drill Combo Kit. Both items were vandalized so I was replacing the tools. I find
that it was stolen. So I had no copies of the Layaway receipts. I find it
suspicious that the day before I received a flyer in the mail from Sears
advertising add-on tools for the Driver Drill Kit. This usually is a sign from the
perps trying to let me know they stole the file.
4. I get to Sears and spend about 45 minutes getting the Checkout Clerk to take
my $175.00 payment to complete the Layaway purchase. They had a wrong
phone number in addition to the stolen receipts. They instruct me to go to the
rear of the Auto Center at Merchandise Pick-up. The clerks at Merchandise
Pickup declared that the 4-piece Driver Drill was lost. My problem was that the
kit in the store did not have a hammer drill, and the item I had on layaway did.
I, of course, also purchased the items at a reduced sales price. I told them to
forget about the air compressor, which they had, and said I demanded a full
refund. So I went back into the Sears Store for a full refund of $275.00.
5. It took about an hour of harassment and lies, and some stalling by some
manager named Dave Clark (he took my credit card and $175.00 payment
receipt and disappeared from the check-out register) to finally get my Visa
Credit Card Refund Receipt for the $275.00 and a $5 dollar bill for the Layaway
transaction fee. So, I finally left with a $275.00 Refund Receipt, $5.00 and my
credit card.
6. I wake up the next morning (Thursday, October 22, 2009), after working on my
laptop computer during the night, and the $275.00 Refund Receipt was stolen
from my home/office while I was sleeping.
October 21, 2009
Yesterday, Tuesday October 20, 2009 Lancaster City and Lancaster City Police
Extort More Money while Harassing and Psychologically Assaulting Me - The
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Classic Surge.
It started out when I parked on the first block of West King Street, the last
parking spot before the entrance to the Hager Parking lot. I went to the meter
and a black male approached me who was waiting near the parking meter. As I
put my dollar bill in the meter after punching in the spot number, the black male
suspiciously started asking me how to use the meter and started peering over
my shoulder. Unfortunately, the meter printed out a "Refund Ticket" rather than
a "Parking Ticket". Well, legally I paid the City of Lancaster $1.00 for parking; I
was not going to put another $1.00 in the meter. I did not know why it would
not print the "Parking Ticket".
The day before I was given a quote of $0.13 cents per page for scanning paper
documents at the Capitol Copy Service. Remember my proposal and
Exclusive Rights to a Downtown Lancaster UPS Copy Store. See my
Downtown Lancaster Investment Plan for details. Well I needed 2 receipts copied
and they kept stalling. In addition to taking my time, the owner tried to charge
me a surcharge of $3.50 for computer time, which he never mentioned. He said
he would wave the charge this time. Had I known about the $3.50 computer
charge I would have never went into downtown Lancaster in the first place. I
would have found another way to scan the documents.
When I returned to my car I had a parking ticket for $10.00 with a time stamp
of 38 minutes from the time I had parked; which did not surprise me in the
least. So, of course I drove straight to the Lancaster City Treasurer's drive up
window at the Lancaster City Police Station to have the parking ticket for $10.00
dismissed. I did pay for parking.
The clerk at the window acted confused, told me she could not dismiss the
parking ticket and asked me to come inside. I parked my truck and went inside
where she had me talk to the City Customer Service Representative. I explained
what had happened. The woman got snippy and called the Lancaster Parking
Authority. Her explanation was that if the Lancaster City Parking Authority
found the parking meter to be faulty they would dismiss the ticket; otherwise I
had to pay the ticket. I argued that I did pay for parking. The Lancaster
Parking Authority had my $1.00. She kept arguing that I did get a refund. I
looked at her and told her the "Refund Ticket" was not legal tender, it was only a
piece of paper - I did not get a refund; I got a piece of white paper worth
absolutely nothing and was not legal tender. The Lancaster City Parking
Authority had my $1.00 of legal tender. I asked for the "Refund Ticket" back
and said she was "nuts".
I walked to my car and a Lancaster City Police officer walked out toward me, spit
on the ground about 12 feet in front of me. I spit at the ground. He got all
charged up and shouted "did I offend you?". I stated no, I just ate a roll of
smarties, courtesy of the counter at the customer service desk. He turned and
walked to an unmarked car. I noticed he was chewing tobacco.
I suspect the entire event was set up and the Lancaster City Police wanted to
either cite me for harassment or a 302 petition; in addition to extorting the
$11.00 from me. Had I not been so quick at the Capitol Copy Center, they
would have gotten another $3.50 cents from me.
I cannot leave my house without being harassed; tortured; and having monies
stolen from me; no matter where I go or what I do.
Summation: Due to the actions and criminal activity of the foregoing, it is
reasonable to prove that every aspect of the Complainants life, Stan J.
Caterbone, is subject to undo influence; harassment; torture; obstruction; etc.
This situation and set of circumstances as outlined here, and in the page "State
of Affairs" and all previous filings; reports; and statements, is a prescription for
only one endgame - death or suicide. There is no life action or activity that is
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immune from this horrendous HATE CRIME. The precedent and landmark
elements that make this so appalling is that the Complainant has never done
anything to set these circumstances in motion but to be right regarding
International Signal & Control back in 1987; as well as many other
proclamations and forecasts. That being said, it is also widely reported that
many Targeted Individuals and Victims of U.S. Sponsored Mind Control are lead
to death and/or suicide. The Lancaster Community-At-Large is guilty of creating;
abetting; fostering; and executing this tragedy. The fact that local; state; and
federal law enforcement induce and encourage this environment of hate is
landmark.
October 17, 2009
Today, Saturday October 17, 2009 at 10:34AM Electromagentic Weapons and Mental
Harassment at it's extreme. Extreme torture and mental harassment. It started on
Friday and continues today. Sheryl will not shut her mouth up. She keeps harassing
me about everything.
Now I find out that a computer hacker deleted the incident report regarding Comcast
Cable. The cable was installed on September 5, 2009 on a Saturday. When we called
to have the service restored on my mothers account, the customer service
representative told me to have a money order prepared. I ordered the installation
online and have a transcript of the chatline it reads"Bryan> Your monthly fee is $69.99
plus taxes and fees, there is a one time installation fee of $81.45. Total to be paid upon
installation is $151.44. Please prepare check or money order.' and that is exactly what I
had done. Not only did I do half of the installation for the Comcast Contractor who did
the install; but the installer refused to accept the money order from CVS for $152.00.
He told me that "installers are not allowed to take money from customers". I
demanded twice for him to take the money order, and he refused. Then he said that
we got a $20.00 credit for him being late. I get the actual bill and the total is $152.08,
not $151.44 less the $20.00 credit as promised. They did credit the $20.00 bu the
total comes out to $152.08. Go Figure that out. So I tried to pay the amount online,
and I was not able to set up the online account using the Comcast Account Number. So
I called Comcast and the Service Representative told me that I could set the online
account to make online payments because we did not receive the password in the mail
to set up the online account. The customer service representative told me not to worry
that there would be no monies due until the end of October. Of course in the
meantime, we get a $262.00 bill in the mail. They are not getting any monies until my
social security check arrives on October 21, 2009.
In 2006 I filed a civil action against Comcast and they had to appear before MDJ
Ballentine to defend against my complaint. Of course, MDJ Ballentine lied; committed
perjury; and obstructed justice by dismissing me before a decision then saying that I
left in the middle of a hearing. That n.... will get it in the court of law by me some day;
and hopefully I will put her in jail for what she did to me. I was also chlorophormed in
her office on too many occasions.
October 17, 2009
Friday, October 16, 2009 the Electromagnetic weapons and devices were back again
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today. Had to take 1/2 of a 7.5mg Vicodin after I returned home from courthouse,
then the mental harassment began.
Someone discharged by battery and I was not able to jump my truck at Staples with
my battery charger. I had the truck running with the doors locked and no key inside;
so they probably turned of the engine. A woman had to jump me using jumper cables.
A service station said the battery was bad, I know they shorted something out in my
truck to cause this problem.
At least 2 people from O'Halloran's bar stalked me at Fulton Bank; one was Michael
Long and the other was the long haired with the headband. I can't go out anywhere in
Lancaster without being harassed and stalked, and the Lancaster City Police are
definitely accessories to these crimes. Hell, they stalk and harass me as well.
My neighbors have had a habit of coming and going when I do; but lately since they
read that it is a common problem with Targeted Individuals, they do it more often.
As far as the computer hacking; I witnessed three of my neighbors in the last year
carry computers into their homes; 1248, Dawn Sutton; 1246 Joy Hoover; and the
punks at 1242. I'll eventually find out if they are or were hacking me or entering any
of my electronic accounts. They may also be using the computer to harass and stalk
me through one of the social networks. They may even be using electronic surveillance
on me through the use of their computers. This would a crime under Pennsylvania law
Unlawful use of computer/electronic device under Title 18 Section 3933, HINT.
October 15, 2009
Computer Hacking is almost unbearable on a daily basis. I can no longer make back-up
discs with my dvd burner.
Today, October 15, 2009 Lancaster City Police respond to complaint regarding
Computer Hacker turning on/off Comcast Broadband Internet connection on or about
6:00AM.
There are now (3) items missing from the U.S. Mails that were not delivered as of yet:
Monthly Social Security Check - Should have arrived yesterday or today.
Last months check arrived on Tuesday, September 15, 2009.
From Amazon Books a book titled "The True Story of America's Psychic
Warfare Program" ordered on October 9, 2009 and ships within 2 business days
at the earliest. (Delivered on Friday, October 16, 2009 - You will find a history of
me raising hell then the item or transaction being successfully completed; it
pays me to raise a little hell)
Tickets to the upcoming conference in Hershey Pennsylvania titled "Get
Motivated" featuring Rudy Giuliani; Zig Ziglar; Terry Bradshaw; etc., Called
today to confirm I received tickets. (Delivered on Friday, October 16, 2009 -You
will find a history of me raising hell then the item or transaction being
successfully completed; it pays me to raise a little hell)
I am still waiting for refunds from the following purchases on Ebay that arrived but did
not work; or were broken after they arrived at the Lancaster Post Office:
Konica Camcorder Item No. 230377736684 Purchased on September 16, 2009
for $98.50 plus shipping.
Biometric Fingerprint Weatherproof Lock Item No. 380084124236 Purchased on
September 20, 2009 for $209.99. (filed a dispute because he wants me to wait
2 weeks for refund)
(2) 16-megabyte Flash Drives Item No. 270452661959 Purchased on September
21, 2009 for $19.98 plus shipping. (filed a dispute with PayPal)
So, for the record, as of today, October 15, 2009 I am out-of-pocket $1,707.47
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plus shipping charges of approximately $70.00.
Saturday, October 10, 2009 6:19:54 PM
Last evening Friday, October 9, 2009 I had been harassed at (2) events in Lancaster
County.
At Charlie Smithgall's Campaign Headquarters as I was leaving; I was not
harassed by anyone in the front of his headquarters. If anyone cared to witness
my discussion with a tall fellow with gray hair, we had a previous relationship as
attorney/client for a very short time and I was simply making a point so he
understood the seriousness of the matter. I do not consider the fellow a foe, for
the record. The problem was when I was jump starting my car and the longhaired red-neck that pulled the same stunt with me during a Neighborhood
Council Meeting at Southern Market, tried again to start trouble.
The other incident of harassment happened during the "pounding" of Lancaster Catholic
v. Pequea Valley at Rosmere Stadium. Father Leo Goodman, Pastor of Saint Mary's
Catholic Church, of which I am a member, continues to harass and cause problems with
me. I have documented numerous other incidents by Father Goodman. You may read
the long history of problems that I have had with the Roman Catholic Church by
reviewing the document titled: "Stan J. Caterbone, U.S. Sponsored Mind Control, and
the Roman Catholic Church" in the New Document Library page of this website. There
are original letters and correspondence dating back to 1998 when I was officially
communicating and meeting with executives of the Diocese of Harrisburg regarding
harassment by parishioners of Saint Mary's Parish and other Roman Catholics. I did
wire myself with an electronic recording device to insure that no one, especially law
enforcement, could lie about any harassment that may have taken place. They will
always lie and try to change the truth. It is the only way to protect myself from
malicious and wrongful prosecution. By the way, you do not have the expectation of
privacy at public events or facilities, according to the law.
Friday, October 9 5:53:13 AM
Did you know that President Bill Clinton Apologized in 1995 for U.S. Sponsored Mind Control
Experiments? Click here to see the video of his statement.
The perps had the audacity to not only short my truck battery/electrical system, but yesterday, my
gas can was stolen with a gallon of gas in it. Of course I called 911 and an officer cam to my home
(so he says) then went to Turkey Hill on Hershey Avenue to find me and take a report.
Thursday, October 8, 2009 8:23:32 AM
Yesterday, Wednesday October 7, 2009 was another day of computer hacking;

harassment; stalking; and vandalism. The pain from electromagnetic weapons on my
back has now been countered, for now, or they are just into torturing my mind.
They have a new model; follow me around and keep my truck battery from charging.
Ever since they drained the battery on Tuesday, it has not fully charged. Now if I run
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the truck and restart without leaving the truck, it will start. But the moment I leave
the truck and return, the battery is dead. This is just like the model of stealing my
gasoline. I have reason to believe that the punks of 1242 Fremont Street and/or
William Lefty Plank's Brothers (Bloods/Crypts/Peagens) have been doing this. There
are too many people from the 1200 Block of Fremont Street that continue to at least
harass and stalk me on a daily basis.
The staff at Wachovia Bank did everything in their power to try and produce an
overdraft fee. BJ's still has not credited the $181.00 for the printer that was returned
on the evening of October 6, 2009 and my PayPal did not sweep the refund of $98.00
into my checking account at Wachovia Bank.
I was finally able to secure a new Dentist, Dr. John Cooper. His father was our
orthodontist and I went to Wheatland with his sister Mimi. His grandfather (I
believe) founded the Lancaster Cleft Pallet Clinic in 1938. It went on to
become one of the only clinics of it's kind in the world. Let it be known that Dr.
John Cooper said that my teeth were in good condition with only a small repair needed
on a tooth with a small piece on the top that is chipped. He laughed at the statement
by Lancaster Regional Hospital's "gingivitis" remark on all of my charts. Next month on
October 26, 2009 I will have the tooth repaired and in November will get a full set of
xrays. Then we will work on restoring the extracted teeth that Lancaster General had
taken out, unnecessarily, of course; I should have been treated by Black and Black
Associates, or New Holland Dental Clinic, or the Southeast Clinic before I required the
extraction due to the infection getting into my bloodstream from non-treatment.
Remember, it took 4 Emergency Room visits from July 11 to July 19 until anyone would
treat me. Oh that's right, I WAS DELUSIONAL!
Wednesday, October 7, 2009 6:53:23 AM
On Sunday, October 5, 2009 I changed my front door lock to my home/office at 1250

Fremont Street, Lancaster, Pennsylvania. The back door is always locked with a
nightstick. These locks were never used and no one has any keys. Since the Biometric
Fingerprint Lock that I received did not work, and Select Security refused to install a
security system, for no reason other than to continue the vandalism and thefts; I did
what I could. We'll see who is going to gain access. Would you all please help me in
keeping these perps out? In 2004 Dave Pflumm said "everyone" had a key to 220
Stone Hill Road, Conestoga. He proved it by literally breaking into my house (with
Lizzy and Keegan) on Thansksgiving Day while I was in the basement.; the day he told
me the previous quote. I guess he figured since he brought me a turkey, it would be
alright. Unbelievable.
I mailed the Complaint to the United Nations Council for Human Rights in Switzerland
at the Chestnut Street Post Office, and the receipt is timed at 12:01:51 Custom Form
No. LC775399807US on Tuesday, October 6, 2009.
Yesterday, Tuesday October 6, 2009 I had experience more vandalism and thefts. It
just doesnt stop. First I had purchased 2 pounds of turkey thigh at Central Market to
make my turkeyJerky. I went to Weis Markets after filing Exhibit A-38, Case No. 0813373 at the Courthouse, and when I rode away I realized that I packed my
saddlebags with my groceries and laptop but forgot my knapsack in the shopping cart.
I rode back and there was a Weis Market employee standing beside it telling me he
watched it and no one touched it. I got home and the 2 pounds of turkey thigh was
missing and gone. I dont know if anything else is missing or not.
At about 5:30pm I loaded my truck with the HP C7280 printer and someone had
drained my battery. Apparently someone did not want me picking up the paper copy of
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the 723 page document that was part of my Complaint to the United Nations Council
for Human Rights or they did not want me to be able to return my printer to BJs Club
on Centerville Road.
Before I went to the Lancaster County Courthouse, I had a conversation with Rufus
Fulton, former Chairman and Chief Executive Officer of Fulton Financial. Rufus retired in
2006 and is now an acting Board of Director. I have had several conversations with
Rufus, but yesterdays will be the last. Mr. Fulton must understand that when he is in
public and converses with me, I hold him to the same standard that everyone holds me
to. He is an embarrassment to the County of Lancaster and to Fulton Financial. I civilly
and cordially approached Mr. Fulton and pulled a business card from my wallet and
asked him if you would oblige me and look at my website. He interrupted me before I
could tell him what I wanted him to see, and he emphatically told me Sam, I dont
believe any of it. People call me Sam when they want to harass me. They want me to
be reminded that they look at me and remind them of my father. I responded are
telling me that you dont believe that the United States government produces the
artillery and weapons that I mention on my website?. He again responded with the
same I dont believe any of it. I, knowing that most of the mind control weapons are
cited and confirmed in either declassified government documents or through United
States Senate Hearings. I told him that I was going to hold him accountable and state
that for the record, and he said he did not care. I gave him another chance to recant
what he said, and he refused. This is what he gets for shooting off his mouth; he is just
like everybody else in this dam town. And people want to doubt that I have legitimate
claims against Fulton Bank for the hundreds of thousands of dollars they (Fulton Bank)
have extorted from me and my brother, Tommy.
I must make note of all of the people that were around me yesterday at Penn Square
over the lunchtime hour: Fred Kendall, Joyce Michaels (looked like her), Rufus Fulton,
Brad Roda, Mary Gatis, Rock Fitzgerald, Judge Denis Reinaker (Courthouse), Bruce Roth
(Courthouse), Robert Hallinger and his receptionist (Courthouse), Erica Weitzel,
Lancaster Planning Commission guy, blonde attorney?, Jerry Larish, Jim High, Jack
Buckwalter, Kevin Cosmore . Anyone know what all of these people have in common?
It seems that before I file significant exhibits or motions, people come out of the
woodwork.
Tuesday, October 6, 2009 8:42:27 AM
Monday, October 5, 2009 the Computer Hackers broke my new HP Photosmart

C7280 All-In-On Printer, that was just purchased a few weeks ago. I now have
to return it to BJ's Club.
On the same day the telepathic harassment and pain was one of the worst assaults that
I have had. I was trying to complete the monthly invoices for Advanced Media Group
and the remote viewer was so clever and relentless while I was trying to work both the
electronic calculator and my WORD file at the same time. It was almost impossible to
complete. The same was true of the final edition of the complaint to the Council for
Human Rights of the United Nations.
This morning the Computer Hacker literally locked my cd drive for 2 or more hours
while I was trying to finish the copy for the U.S. Department of State.
Saturday, October 3, 2009 8:34:47 AM
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COLLUSION TO COMMIT EXTORTION BY THE LANCASTER CITY POLICE; THE INSURANCE

COMPANIES; THE PENNSYLVANIA DEPT. OF INSURANCE; THE MAYOR AND MY FAMILY!
A continuation of the vandalism. Since September 4, 2009 I have had 12 purchases that have had
to be returned due to them being broken or the wrong product. This method does not require
criminal trespass and burglary into my home/office at 1250 Fremont Street. I loose time; money;
and must ship the items back or go back to the respective stores and get harassed again.
On Thursday I had spent some $20.00 in postage returning items that I had purchased on Ebay.
Yesterday, Friday, October 2, 2009 I received 3 items in a very suspicious manner from the U.S.
Postal Service. I was taking an afternoon nap when the mail woke me up as it came through my
door. In the mail was a Notice to pick up a parcel from the Harrisburg Pike Post Office on or after
October 3, 2009. Also in the mail was my renewed Pennsylvania auto registration renewal sticker,
which was a few days late, of course. I went out and put the sticker on my plates and came back in
the house. A few minutes later the door bell rang and a U.S. Postal Carrier said he had some
packages for me. He handed me one and asked for the Notice back and asked me to sign it. I
asked what he was doing, why didn't he ring the bell when he delivered the mail. He flat out lied and
said he did. I was 8 feet from the ringer, impossible not to hear, sleeping or not. Anyway he
delivered my next (3) items purchased from Ebay. None of which work. All three have to be
refunded. Then this morning I tried to install the biometric finger print locks for my front door, again
a purchase from Ebay. Now it does not work. Now for the record, I am very experience with Ebay,
both as a seller and a buyer. I was selling on Ebay full-time a few years ago and had a perfect
feedback score, until the perps saw I was begining to make money. I had the same record with my
purchases.
Now, let's review the record concerning the security of 1250 Fremont Street. In the past few
years the following has taken place:
I was denied contents insurance by the Spiziri Insurance group.
I was denied a security system with monitoring by Select Security, owned and
operated by Patrick Egan, of Lancaster, Pennsylvania.
I was unable to purchase a functioning biometric finger print lock-set.
The Lancaster City Police Department refuse to take any complaints of vandalism or
thefts; dating back to 2007.
The insurance company, State Farm, that insures the contents of 1250 Fremont Street
under my mother's property and casualty company refuses to pay.
The Pennsylvania Departmtment of Insurance refuses to enforce the insurance laws
of Pennsylvania regarding the above.
The Federal Bureau of Investigation (FBI) refuses to meet with me.
Lancaster City Mayor Rick Gray, after more than four (4) meetings refuses to do
anything but ask who owns 1252 Fremont Street.
Lancaster City Chief of Police Keith Saddler refused mediation through a process that
was I initiated with the Lancaster Mediation Center.
The County of Lancaster, through a Meeting with Former Administrator Mark
Esterbrook also refused to engage in any Mediation process in December of 2007.
My Family refused mediation through the Lancaster Mediation Center during the
same time that I filed with the Lancaster City Police Department.
The following items are now considered non-functional and must be returned to the sellers:
(2) 16 Megabyte Thumb Drives.
1 I-Touch Biometric Finger Print Lockset.
1 Memory Foam Laptop Case.
October 31, 2009 12:38:00 AM
We are back to the vandalism; this time it is on purchasing replacements for things that
were either vandalized or stolen before, or for new items. I made several purchases on
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Ebay the past few weeks, and just like earlier, most of the items had to be returned
because the arrived in non-working condition. They were either vandalized by the
seller, or by someone who intercepted the package prior to delivery, or by a neighbor
who stole the package from the U.S. Postal Delivery Person.
Microsoft Office 2007; the discs would not load.
Konica Camcorder; the drivers would not work and the SD Disc did not work,
technically making it impossible to transfer the media files to my computer.
Sansa Clip 2 MByte MP3 Player; they changed the add from New to Used and
took me 3 weeks to get a manual for the device.
Headset for a Computer; the microphone was taint and scratchy when using it
with my phone system.
Speakers for my Laptop were either broken or the computer hackers simulated
the noise and could not listen to music.
The Computer Hacking is making it almost impossible to get anything done,
click here for the latest rounds of complaints to the Federal Bureau of
Investigation IC3 Unit.
The accident of September 4, 2009 when a driver with an expired registration rearended me is another issue where everyone wants to harass and lie; click here for the
documents. I reported the accident an hour after it happened to my Insurance
Agent of Record; and the Insurance Company wanted to act like I was trying
to avoid the reporting requirements.
They are again using electromagetic weapons on my back. I went all week without
having to take any medication for back pain, the last on early Friday evening, then first
thing Monday morning I was back taking medication; and have everyday this week.
September 22, 2009 5:45:27 AM
I have been experiencing EXTREME lower back pain from Electromagnetic Energy
Devices for the past 4 days and had to make an appointment with Dr. Sullivan for
September 22, 2009 at 10:20 am. This is the worst it has been.
Today, it took me all morning and a call to 911 for the ABBEYVILLE FAMILY MEDICINE
STAFF to take my call to make an appointment due to extreme lower back pain. They
kept putting me on hold and leaving me hang on the phone; 10:25 minutes; 14:47
minutes; 5:37 minutes. That was after I kept getting a busy signal; making me call
911.
The computer hacking and intrusions into my computer are getting so bad that now I
just update FBI Complaint No. I0909141752127141 several times a day. The hackers
have a way of making my mouse jump when highlighting and dragging text that would
drive you insane.
Today, September 21, 2009 I ORDERED one BIOMETRIC THUMB PRINT DOOR LOCK for
my front door at 1250 Fremont Street; hopefully you will soon see me without my
backpack on my back. I also CONTRACTED with a third party that backups and
encrypts every file on my new laptop computer in real time mode and stores every file
off-site.
Today, September 21, 2009, I received an invoice from LANCASTER GENERAL HEALTH
for a Balance Due of $29.50 to Abbeyville Family Medicine for an ADJUSTMENT of
$36.50 for OFFICE OUTPATIENT VISIT/ NEW LEVEL III. This is very suspicious given
today I made the appointment for my back pain.
Perps stole a new container of pepper; they love to steal my food.
I had received the following items from Ebay that did not work or were changed:
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Microsoft Office 2007

USB to IDE Adapter
MByte Sansa MP3 Player was listed as new, then changed and received without
an owners manual.
Today, September 21, 2009 I received a hand written letter from my brother Steve
Caterbone and my Mom requesting that I pay for all utilities and a $43.00 UGI Gas Bill.
However, the letter did not match his handwriting or the telephone conversation of
September 13, 2009. On September 12, 2009 he had requested that I pay for the UGI
gas utility. In response I sent him a letter and on September 20, 2009 sent him $60 via
PayPal (Mike Caterbone).
On Friday, September 18, 2009 I went to Harbor Freight Tools, Lincoln Highway East,
Lancaster to return a Cordless Drill. I had it sitting in the passenger side floor for a few
days and when I picked it up, it was soaked, the cardboard box was ruined. I took
special care to package it just the way I received it. Some perp, probably the guy
named Toby in the 1300 Block of Fremont Street who used to hang out with William
Lefty Plank.
Then I went to Walmart, about a mile away on Lincoln Highway East, to get some Dr.
Scholls Foot Inserts to help deal with my back and groin. I have been looking for these
kiosks for about 4 weeks. You stand on the kiosk and it tells you exactly what type of
insert to purchase, which are located on the sides. A few days ago, I finally got online
and located the kiosks at all of the Wall marts. When I stepped on the machine, it
would not work. An employee came out of the Pharmacy and told me it worked earlier
in the day, but they needed to call the sales rep to repair it. I took pictures and
recorded the event, I was again wired with a recording device.
On Friday, September 18, 2009 I went to the Lancaster Catholic High School Football
Game and wired myself due to being harassed and stalked all the time. I was ignored
and infuriated by my former friends Mike and Mary Lynn Dipaolo (with Sheryl Crow?)
and harassed and berated so bad my Tina Fulginetti Kirchner that I had to leave before
halftime. I solicited the support of Father Pete Hahn of St. Leo Catholic Church
regarding Organized Stalking and Harassment/Directed Energy Devices and gave him
my card.
After the game I went to the Beach/House of Pasta on Millersville Pike for a drink and
was harassed by the James Street District Patrolman; whom I already complained
several times to Lisa Riggs, Director of James Street, regarding his stalking and
harassing me. Listen to audio transcript.
On Saturday, September 19, 2009 I participated in the Conference Call for Freedom
From Harassment and Covert Surveillance (FFCHS). There were 33 members present. I
was also asked to join the committee to solicit a Hollywood/Celebrity Spokesperson by
director Derek Robinson. I also joined there lawsuit against the Department of Justice.
On or about Wednesday, September 16, 2009 I went to Smithgalls Pharmacy to pick
up a yard sign for the Election of Charlie Smithgall for Mayor. Upon leaving, the pastor
of the First Reformed United Church of Christ, who told me he was ex-navy, was again
stalking me. This time he walked a few feet from me carrying a hunting rifle in his
arms, pointed down to the ground. I was not a very happy camper. I told him to stay
away from me, he said Dont worry about it. What fool would do that, I mean, without
putting the gun in a gun case before carrying it around the streets of the City of
Lancaster. He was heading from Mary Street to Lemon Street. The last time I saw him
was in the Lancaster County Sheriffs Department when I was getting Sheriff Bergman
or Deputy Chief Reese to review one of my CI-08-13373 filings, as per President Judge
Farinas ORDER. I guess he was just getting his gun permit. We have had discussions
prior to this about MKULTRA; my father; and the U.S. Navy.
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September 11, 2009

My first Doctors appointment with my new primary care physician, Dr. Denise Cope of
Abbeville Family Medicine on Abbeville Road, Lancaster, Pennsylvania ended up being
another attempt by Lancaster General Hospital to intimidate; harass; extort; and lie.
On August 3, 2009 I signed releases from Mastropietro and Associates Family Practice
to Abbeville Family Medicine and was given 2 choices for primary care physicians; Brian
Sullivan, M.D. or Denise N. Cope, M.D. I selected Denise N. Cope, M.D..
Abbeville Family Medicine kept stalling the process, even though they had a yard sign
on the property stating Now Accepting New Patients.
On September 10, 2009 I called and made an appointment with Denise N. Cope, M.D.
to evaluate my pulled groin and back problems and to consult on the emergency
surgery of July 20, 2009. The customer service person gave me a fixed price of
$80.00, and I accepted.
On Friday, September 12, 2009 I showed up at about 3:15 for my 3:20 appointment.
The switched doctors to Dr. Brian Sullivan, M.D. and lied and said Dr. Denise
Cope was not in the office, when she suddenly appeared in the waiting area as I
was leaving.
They tried to charge me $148.00 instead of the $80.00 agreed upon price.
Two staff members pulled me into an office and tried to berate me and harass
me because I did not answer my cell phone the day before and they could not
leave a message because I have no voice mail on the account.
The nurse gave me a false blood pressure reading.
Dr. Brian Sullivan, M.D. tried to again refute the false and fabricated 302 petition
of July 19, 2009 and the reason the Lancaster City Police; the Lancaster General
Hospital; the Lancaster Community-At-Large, and most importantly all of the
defendants that I have filed civil complaints against in civil courts; and of course
all of the police departments that filed false arrests; need so desperately to
discredit my allegations and change the truth.
Abbeville Family Medicine also lied about what medical records they do have.
Both Dr. Brian Sullivan, M.D. and Dr. Denise Cope, M.D. as well as the entire
staff have violated the Hippocratic oath.
Then after I get home, there is a message from Amy telling me she adjusted the
bill for services.
Again, some perp soaked the passenger side floor of my 1991 Dodge Dakota with
water. Now immediately following the imprisonment of William Lefty Plank on June
15, 2009 and for about the next month or so, even during heavy rains, there was never
any sign of water on the floor mats. Then about 3 weeks ago, it started again.
The USB to IDE cable and power supply that I bought from Ebay several weeks ago,
does not work after first trying it a few minutes ago.
Computer hackers locked me out of my facsimile account and I again was not able to
update my website.
Another Complaint to the FBI IC3 Complaint No.
I0909110558417822.
Microsoft reset my email account after hackers closed my account for 2 days.
September 10, 2009
Strong Elecromagnetic Devices past several days.

Vandalized Mr. Coffee automatic coffee maker, does not work anymore.
Stolen Identity with email account Caterbone@live.com; Microsoft closed account for 2
days due to fabricated violation with terms and conditions.
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Filed complaint with the FBI Cyber Crime Unit Complaint ID No. I090100045224132.
The following was reported:
Description of the Incident - Describe in your own words how you have been
victimized. September 10, 2009 My computer and online accounts have been
hacked and my identity stolen for many years now. I have been reporting this
crime to every available law enforcement agency within my jurisdiction. My most
recent incident includes the closing of my email account without merit; most
likely because persons access and use my account without my knowledge or
consent.
The
email
account
is
scaterbone@live.com.
Now,
my
advancedmediagroup@yahoo.com refuses to send out any email accounts. I
would advise you to please go to www.amgglobalentertainmentgroup.com and
read the Executive Summary on the Welcome page for more information. I don't
believe this form will allow me enough space. The other problem is that the
Lancaster City Police Department; the Lancaster County District Attorney Office;
and the FBI Office in Harrisburg, Pennsylvania all refuse to investigate. I would
accept a meeting with the U.S. Department of State to consider negotiations for
conditions to move outside the domestic United States or to another country of
my choosing if my situation is too difficult for you to investigate, or if the rule of
law intimidates you in any way.
September 7, 2009
My Braun 4615 Electric Razor

My Mr. Coffee Coffee Maker
My New Compaq Presario CQ60-421NR
I purchased my new Compaq Presario CQ60-421NR on August 28, 2009 from Office
Max that ran a sale of $150.00 of the retail price of $550.00. I must say I am
impressed with the machine, forgetting about all the things that dont work on my
machine. I have been keeping a log of the items that did not function or were just not
working properly from the beginning. Of course, the computer hackers threw
themselves in the middle of this. As it stands now, the computer hackers do not like me
using a Word processor. First of all, on September 28, 2009 I the salesman sold me
Microsoft Office Student Home Office 2007 version for $99.00 and told me that no older
versions of Microsoft Office would work with the Microsoft Vista operating system. He
also told me that my documents that I created with Microsoft Office 2007 would not be
backward compatible with other version of Microsoft Office. He failed to recognize my
expertise with PC computers. You only need use the Save As funcion and select how far
back you want your documents to be compatible. I own Microsoft Office 2000, with a
valid registration number. I found out that he lied to me and the next day returned the
Microsoft Office 2007. The following is my log of flaws and functions that did not work,
and it is a shame because for the price, I am very impressed. I guess Ill have to hope
they have more in stock:August 28, 2009 - The directories using Microsoft Explorer
were all mixed up and would not sort. The Search function did not work.
1. August 29, 2009 - The computer started with the following No Bootable
Disc.. for no reason. The computer has been always shut down using the
Microsoft Logo. Also, I could not produce a DVD of data. The whole machine
froze and had to be rebooted.
2. August 30, 2009 - Photos are skipped when browsing using Microsoft Photo
Gallery. Also the videos would not operate in my Emergency Injunction CDROM.
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3. August 31, 2009 - Windows Explorer kept changing, and would not operate
normally.
4. September 2, 2009 - The CD-ROM writer kept changing menus and would
always freeze. While trying to make a copy of Remote Viewing CD Exhibit
for Court Case No. CI-08-13373 with Russell Targ, Remote Viewer, the CDROM would make a noise and not work.
5. September 4, 2009 - I had wasted at least six or seven CD-ROMs trying to
make copies of Remote Viewing CD Exhibit for Court Case No. CI-0813373 with Russell Targ, Remote Viewer.
6. September 5, 2009 - All of the Word Processing programs stopped working;
Microsoft Office 2007; Microsoft Office 2000, and Wordpad. Photos are
available.
7. And everyone wonders why I had to withdraw all of my Federal lawsuits.
September6, 2009
There are several new incidents since September 2, 2009 to report.
On Friday, September 4, 2009 I spent about an hour with a technician/salesman from

Select Security, a company owned and operated by Lancaster Township resident Patrick
Egan, for a proposal and estimate on a security and monitoring system for my
home/office at 1250 Fremont Street. We agreed on a price and payment schedule and
he gave me an installation date of Wednesday, September 9, 2009. He left the meeting
to meet with Patrick Egan and was supposed to email me an electronic version of the
hardware; and payment schedule. He later emailed me and said Hey Stan, Select
Security is unable to assist you with your security needs. Thanks, Matt Self, Sales and
Marketing Coordinator, Select Security, 241 N. Plum Street, Lancaster, PA 17602,
Direct: (717) 481-6307 * Fax: (717) 481-7574 .
September 4, 2009 during First Friday in Downtown Lancaster I (1991 Dodge Dakota
4WD Pickup Truck) was rear ended with malice by two Spanish persons driving a 1991
Chevrolet Blazer, Burgundy SW. Damage to my rear bumper. I was smart enough to
stay in the exact position and made certain the assailants did the same. I took crime
scene photos that proved the car was not legally registered at the time of the incident
and the tires were aligned toward my truck, proving that they came across from the
inner lane on King Street as I was backing into a parking spot. Also, it is my testimony
that the female was driving and first got out of her car yelling at me and accusing me
of being drunk and a crack head. I had just come from Sheetz on Manheim Pike;
Lancaster Bicycle Shop on Manheim Pike; Weis Markets; Home Depot; and the Office
Max, all of Red Rose Commons, after leaving my home/office. I have time stamped
receipts. I was at no other place during the entire day. The incident occurred at
approximately 8:15pm with Lancaster City Police Officer Mendez, Badge No. 92. The
assailants names are George Maldonado of 1202 Clay Road, #1, Lititz, Pennsylvania,
17543 and Kristin Wilson, 220 Kinseyville Road, Nottingham, PA 19362. They have
Allstate Insurance, Policy No. 928473088. I have 10 crime scene photos. The Assign.
No. is 004463. Two James Street Investment District Bike Patrol Persons also harassed
me, both males that I did not recognized. As soon as the Lancaster City Police
responded I made sure he called the Lancaster City Safety Coalition to see if a video
was available.
My Zenith SM274481195 36 Television/Stereo was vandalized yesterday, September 5,
2009 and no longer works at all. The power no longer comes on.
After sealing my patio with a brown tarp, the corner closest to Dawn Sutton of 1248
Fremont Street was totally undone by vandals, yesterday or last night, September 5,
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2009.
I was harassed by Dawn Sutton and chased off of my patio roof while painting
yesterday, September 5, 2009 then she followed and stalked me at the CVS Store,
Manor Shopping Center about an hour later.
Considering that about a month ago they vandalized and broke my Sharp RV-DV550U
Digital VHS/DVD Recorder and my Panasonic RF-PV275 27.5 Flat Screen DVD/VHS
Television Set, just about every piece of electronics has now been vandalized in my
home, including 2 laptop computers, 1 desktop computer, and 2 inkjet printers.
September 2, 2009
On September 2, 2009 we applied for security through Select Security of Plum Street,
Lancaster, Pennsylvania and are awaiting a response. Choice Security and Yarnell
Security have already been excluded from any type of inquiry due to fraud and or
harassment in the past regarding the installation and monitoring of a home security
system at 220 Stone Hill Road, Conestoga, Pennsylvania. No one better cause a
problem in our negotiations for a home security system for our home/office at 1250
Fremont Street, Lancaster, Pennsylvania.
This report does not cover all incidents, but was compiled mainly due to the surge in
vandalism over the past week or so.
Since the end of June, 2009 we have been dictating memos on a micro cassette
recorder and securing them offsite. This new techniques was administered mainly as
the result of the Pain Assault initiated on July 8, 2009 and executed in part by the
Lancaster General Hospital, the Lancaster Regional Medical Center, the Lancaster City
Police, and Mastropietro and Associates Family Practice.
The memos are of daily incidents of vandalism; harassment; stalking; and torture by
directed energy devices and weapons and or electromagnetic microwave technology.
(See Executive Summary - Federal Whistleblower and Targeted Individual of U.S.
Sponsored Mind Control dated July 28, 2009)
September 3, 2009
Update on Current and Recent Vandalism/Theft Reports:
September 2, 2009 broke gear cable on bike in order to cause accident by having
cable wrap around chain while riding. Vandalism happened in front of Fulton Bank,
Manor Shopping Center, where bike was parked. Also bent front reflector.
September 1, 2009 broke outside light under patio and left the metal in the socket so
that you have to remove without being able to unscrew the actual light bulb.
Stole bird feed from backyard bird feeder, twice in last week and a half.
Drain hot tub of water on a continuous basis.
On August 27th or 28th soaked passenger floor of 1991 Dodge Pick-up Truck. This used
to be done every time it rained, however, it stopped on or about June 15, 2009 when
William Lefty Richard Plank was committed to Lancaster County Prison.
Hacked new Compaq Presario Laptop.
On August 28, 2009 hacked the edit page of Advanced Media Group website,
www.amgglobalentertainmentgroup.com .
ust about every home improvement done over the last several days has been
sabotaged after completion, or they have done everything to prevent me from making
purchases required for the projects.
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Saturday, August 29, 2009 9:50:00 AM
(4) Four Manheim Township Merchants Commit Theft By Deception on August 26th,
August 27th, and August 28th of 2009.
August 26, 2009 - Lens Crafters, Park City Mall, Manheim Township,
Pennsylvania refused to provide Eye Examination for Prescription Glasses and/or
Prescription Glasses.
August 27, 2009 - Kohls Department Store, Park City Mall, Manheim Township,
Pennsylvania switched a pair of Asics Sneakers Size 9 to Avia Size 11 at the checkout
counter.
August 27, 2009 - Dr. Harry Breitman, Optometrist, Park City Mall, Manheim Township,
Pennsylvania Examined Eyes for $49.00 and the Prescription was wrong.
August 28, 2009 - Eyemart Express Store No. 71, Park City Mall, Manheim Township,
Pennsylvania, Charged $288.86 for (2) Pair of eyeglasses that were not right and could
not be used, $288.86 was voided that day, however no credit was issued on bank
statement as of yet.
August 28, 2009 - Cartridge World, of 1937-B Fruitville Pike, Manheim Township,
Pennsylvania, charged $35.76 for (2) Lexmark Ink Cartridges that were empty. The
black printed 3 pages before running out of ink and the color cartridge registered as
"Low Ink" upon installation.
August 25, 2009 to August 29, 2009

Other Incidents And Surges Of Harassment; Vandalism; And Electromagnetic and Telepathic
Torture of last few days (August 25, 2009 to August 29, 2009) :
Today, August 29, 2009 Six (6) of Water drained from hot tub.
Today, August 29, 2009 Passenger Side Floor Flooded with Water.
Brand New Compaq Presario CQ60-421NR Does Not Operate Without Major Problems.
Office Max Sold Computer and Software on Misinformation regarding Microsoft Office,
Which Had to be Returned.
Today, August 29, 2009 Went to the Manheim Township Police Station to Report Thefts
by Deception and got Harassed by Officer Taking Report; He Tried To Provoke Me.
Lancaster Solid Waste Management Would Not Provide Correct Information for
Recycling Yard Waste.
Constantly Harassed By Neighbors, Especially the Bloods and Crypts or CrackHeads.
Friday, August 14, 10:44:25 AM
NEW PAIN ASSAULT STARTED THIS WEEK AUGUST 10, 2009 - BACK ACHES!
Since the Pain Assault in my mouth is now over, they started going back to the old
Directed Energy Device Weapons with Back, Neck, and Headaches.
August 11, 2009 1:15:38PM
I had someone at my window last night, sounded like they were trying to open screen
window. Called 911 and made complaints about 2 other incidents for yesterday, August
10, 2009 ( dead battery at UPS Store, Stone Mill Plaza and 8 inches of water taken out
of hot tub).
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Lancaster County Wide and Lancaster City Police forget that I have a Police Band
Radio. I taped Lancaster County Wide Communications lie to the Lancaster Police and
said that I hung up, then the Lancaster City Police said "that is the response I thought,
or something like that.
Then, a sometime later, Lancaster City Police scare the hell out of me shining a
flashlight in my back kitchen door and window.
Why didn't the Lancaster City Police ring the door bell and come to the front door????
Thankfully for my micro cassette tape recorder, gotcha again!
The following was broken and vandalized in the past week (July 25, 2009 to August 3,
2009): one gas powered week whacker; one 27" Panasonic TV (VCR will no longer
work); one Sharp DVD VCR Recorder (VCR will no longer work); my saddle bag for my
briefcase.
I also in recent weeks added the following to CATERBONE v. Duke Street Business
Center CI-08-13373 President Obama; Attorney General Eric Holder; and Chief of
Lancaster City Police Keith Sadler; among others. I will be claiming racial and ethnic
discrimination in that complaint.
August 7, 2009 10:21:59
Lancaster General Hospital (LGH)Tried to Get a Court Order under the 302 Commitment
to have Advanced Media Group's website taken down:
Dr. Daniel McIntyre stated on the medical file the following as part of his notes: "...
Patient has a long history of delusional thoughts secondary to his Bipolar disorder. He
apparently has a website that provides him an avenue to express his grandiose
thoughts and delusions. This patient is clearly in need of psychiatric help. He also needs
medical attention to the dental abscess he currently is suffering with. I do not feel the
patient is safe for outpatient follow up. I have arranged for Conestoga Oral surgery to
admit the patient with a 302 petition in place. Psychiatry to see patient in
consultation." Transcribed on Mon Jul 20, 2009 12:57 AM
Monday, August 3, 2009 12:49:05 PM
Dr. Denise Cope of Family Practice Associates of Lancaster on Abbeville Road,

Lancaster, better not refuse me as a new patient as my primary care physician.
Today, August 3, 2009, I submitted my forms to transfer to that practice and the
receptionist tried to tell me that she needs to review my medical file from
Mastropietro Associates first. This is not what I was told on July 29, 2009 when I
first picked up the paperwork to switch primary care physicians.
Today, August 3, 2009 in my appointment with Dr. Henrichsen of Conestoga Oral
Surgeons, he said it will be a month or more until my mouth opens wider. I am
still restricted to an opening of only 1/2 inch.
The following was broken and vandalized in the past week (July 25, 2009 to
August 3, 2009): one gas powered week whacker; one 27" Panasonic TV (VCR
will no longer work); one Sharp DVD VCR Recorder (VCR will no longer work); my
saddle bag for my briefcase.
I also in recent weeks added the following to CATERBONE v. Duke Street Business
Center CI-08-13373 President Obama; Attorney General Eric Holder; and Chief of
Lancaster City Police Keith Sadler; among others. I will be claiming racial and
ethnic discrimination in that complaint.
The Project Hope Tommy Caterbone Memorial Golf Tournament that was held at
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Crossgates Golf Course yesterday, Saturday, August 1, 2009 ended in disaster. I

attended two times, once in the afternoon and once in the evening. Did not see
anyone I recognized on the Golf Course, and there was no dinner at 6:00 pm, as
in the past 13 years. Jimmy Karpathios; his wife; Tina Albright; Lizzy Pflumm;
Pami Pflumm; Dave Pflumm; Bill Pflumm; Tina Dougherty; Dakota Royer; Tina
Royer; James Doran; all were there around the pavilion, lying to me about the
golf tournament.
Lizzy Pflumm is now a confirmed Professional Stalker and Harasser. What the hell,
did the Pflumm's take over Project Hope. I did see a prize table with tee shirts
and golf shirts, which of course I was able to walk away with, with permission
from someone.
First a worker from Crossgates told me in the afternoon that dinner was at 5:30,
then in the evening, 2 workers said it was served at 3:00 pm.
You people just don't quite

Saturday, August 1, 2009
Staples of Golden Triangle Shopping Center refused on 2 occasions to print 2

brochures from Freedom From Covert Harassment and Surveillance Organization
(www.freedomfchs.com). One on Organized Stalking and Harassment and One on
Directed Energy Devices. On Wednesday July 29, 2009 it was Brett ... and on
Friday July 31, 2009 it was a white female. They are already a named party as a
defendant on CI-08-13373 in the Lancaster County Court of Common Pleas.
Wednesday afternoon, July 28, 2009, Steve Midciff, CEO of Lancaster Regional
Medical Center agreed to a meeting to discuss their conduct. The meeting was
scheduled for Thursday, July 29, 2009 at 10:00am.
Steve Midciff, the CEO of Lancaster Regional Medical Center and Dr. Anthony
Mastropietro, my former Primary Care Physician, ambushed me and assaulted me
in another attempt to 302 me. I had to leave after about one minute in his office.
Could not believe it. Just like Lori Austin of Millersville University and the former
head of LETA had done to me the past few months.
Then today, July 30, 2009 I had a medical appointment with Dr. Rodriquez of
Mastropietro Associates for a 2nd opinion of my jaw, which still only opens 1/2"
after emergency surgery. Again, Dr. Mastropietro (via telephone) and his office
manager assaulted me on the telephone, he said "do you remember meeting with
me yesterday?". The would not let me meet with Dr. Rodriquez. Did they harm
me three times, one by making me visit the Emergency Room 4 times before
they would treat me; then did they do something wrong at surgery?; and now
they are trying to cover up all the mistakes with yet another 302 petition. These
people need some serious help.
I immediately went to a Family Practice on Abbeville Road and started the
process of switching my primary care physician.
Saturday, July 25, 2009 I am recuperating from surgery, they did put me under
general anesthesia. I still am not able to open my jaw very wide, and must
crumble my food.
________________________________________
LGH Pain Assualt
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July 24, 2009
On Thursday evening, July 23, 2009 another tooth began hurting me, and they again
began hitting me with Directed Energy Devices with Harassment.
For the record, on Sunday evening at no time did the Lancaster City Police or Lancaster
General Hospital ever present me with a 302 Warrant at my home or in the Lancaster
General Hospital.
Sunday evening, July 19, 2009; LANCASTER CITY POLICE HANDCUFF ME IN MY HOME,
TAKE ME AND ONLY SHIRT, SHOES, PANTS, WALLET TO LGH AT 9:20PM.
Some of incident I have recorded of Lancaster City Police in my home.
Admitted to Behavioral Medicine in Emergency Room at Lancaster General Hospital
about 9:45pm Sunday Evening, July 19, 2009.
Three hours later taken to Intermediate Intensive Care Unit Room Number 6003.
Monday, July 20, 2009 emergency surgery done on mouth, including infection that
reached into my blood stream and system.
Operation a success, thanks to Dr. Henrichsen, MD of Conestoga Oral Surgeons and the
LGH Intensive Care Unit/Operating Room Team. Interviewed by Two (2) LGH
Psychiatrists who refused to sign into 302 Petition Efforts by LANCASTER CITY POLICE
DEPARTMENT.
DISCHARGED FROM LANCASTER GENERAL HOSPITAL ON JULY 22, 2009.
See Symptoms of the United Nations Petition in the FFCHS, Freedom From Covert
Harassment and Surveillance Document.
Harassment by Lancaster General Hospital Doctors and Nurses. Dr. Vito DiCarmillo and
Company.
Possibly Given Wrong Medication.
Left with Little Mobility in Jaw. Cannot Eat Most Foods.
July 17, 2009
Cavity; Electromagnetic Weapons; Poison; or a combination of the three!

Dr. Black, the Dentist from Willow Street, refused me as a patient yesterday, July 15,
2009. Was a patient since 1994.
Since January I have been refused treatment by a dentist from Southeast Clinic,
Lancaster City, New Holland Dental and Dr. West, and now Dr. Black and Associates of
Willow Street.
Pharmacist (Mr. Jacobs) at CVS, Manor Shopping Center advised me to see an
Endocrinologist, yesterday, while harassing me.
Pharmacist at Weis Markets, Amy Brent, was harassing, yesterday, July 15, 2009.
My mobility in my jaw went from 1" to 1/2", as of today, July 16, 2009.
July 15, 2009
Pain is not subsiding, although, with the aid of Momentum Back Relievers, I have been
able to reduce swelling in face.
I must go back to another Emergency Room again today, the 8th day of this PAIN
ASSAULT.
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I CAN NO LONG EAT SOLID FOODS!! WHEN WILL I BE ABLE TO EAT AGAIN!!!!
July 13, 2009
WILL ANYONE PLEASE HELP ME?

Do Not Have Access to Computers/Internet or Time To Provide More Detail.
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scaterbone@live.com
https://www.scribd.com/stan5j.5caterbone
Stan J. Caterbone
1250 Fremont Street
Lancaster, PA 17603
(717)669-2163
PRESS RELEASE
Saturday, July 4, 2015
Lancaster, Pennsylvania, Advanced Media Group and Stan J. Caterbone Proposed ORGANIZED
STALKING AND DIRECTED ENERGY WEAPONS HARASSMENT BILL to Pennsylvania House of
Representative Mike Sturla (Lancaster, Pennsylvania) and City of Lancaster Mayor Richard Gray.
The draft legislation is the work of Missouri House of Representative Jim Guest, who has been
working on helping victims of these horrendous crimes for years. The bill will provide protections to
individuals who are being harassed, stalked, harmed by surveillance, and assaulted; as well as
protections to keep individuals from becoming human research subjects, tortured, and killed by
electronic frequency devices, directed energy devices, implants, and directed energy weapons.
Stan J. Caterbone has been a victim of organized stalking since 1987 and a victim of electronic and
direct energy weapons since 2005. He has also been telepathic since 2005. Stan J. Caterbone will
help introduce measures that also pertain to remote viewing; mental telepathy and synthetic
telepathy in more detail. Personal accounts of his pain and torture are also filed in various United
States federal and state courts.
We are urging you to contact your local representatives and support our efforts to pass this
legislation. Below you will find the listings of Pennsylvania State Representatives.
For More Information Please Contact Us At: scaterbone@live.com and visit our library of
documents at https://www.scribd.com/stan5j.5caterbone
_________________________________________________
The draft of the legislation can be found on the following page:
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Capitol Office
State Capitol
Jefferson City Mo.
573-751-0246
District Office
Second Street
King City Mo.
660-535-6664
May 21, 2009

To Whom It May Concern,
This letter is to ask for your help for the many constituents in our country who are being affected unjustly
by electronic weapons torture and covert harassment groups. Serious privacy rights violation and physical
injuries have been caused by the activities of these groups and their use of so-called non-lethal weapons on
men, women, and even children.
I am asking you to play a role in helping these victims and also stopping the massive movement in the use
of Veri-chip and RFID technologies in tracking Americans.
Long before Veri-chip was known we were testing these devices on Americans, many without their
knowledge or consent.
There are new revelations of the cancer risk besides the privacy and human rights problems with the use of
Veri-chip and RF signals.
I am asking for your help in stopping these abuses and aiding those already affected.
Sincerely,
Rep. Jim Guest
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Organized Stalking and Directed Energy Devices and Weapons Bill
Section 1. Short Title This bill may be cited as the Organized Stalking and Directed Energy Devices and Weapons
Bill
Section 2. Findings and Purpose
A) Findings
1) The constitution guarantees the right of the people to be secure in their person. The Declaration
of Independence asserts as self-evident that all men have certain inalienable rights and that among
these are life, liberty, and the pursuit of happiness.
2) As Supreme Court Justice Louis Brandeis wrote in 1928, the framers of the Constitution sought
"to protect Americans in their beliefs, their thoughts, their emotions, and their sensations." It is for
this reason that they established, as against the government, the right to be let alone as "the most
comprehensive of rights and the right most valued by civilized men.
3) The first principle of the Nuremberg Code states that with respect to human research, the
voluntary consent of the human subject is absolutely essential. The Nuremberg Code further
asserts that such consent must be competent, informed, and comprehending.
4)There are current regulations implementing the obligations of the United States to adhere to
Article 3 of the United Nations Convention Against Torture and other Forms of Cruel, Inhumane or
Degrading Treatment including all terms that are Subject to any reservations, understandings,
declarations, and provisions contained in the United States Senate resolution of ratification of the
Convention.
B) Purpose
To establish regulations and penalties for those who use any type of electronic frequency devices,
directed energy devices, implants, surveillance technology, and directed energy weapon to
purposefully cause any of the following: stalking, harassing, mental or physical harm, injury,
harmful surveillance, torture, diseases, and death to any United States citizen.
Section 3. Organized Stalking
If two or more persons willfully, maliciously, and repeatedly follow or willfully and maliciously
harass another person and who make a credible threat with the intent to place that person in
reasonable fear for his or her safety, or the safety of his or her immediate family, they are guilty of
the crime of organized stalking, punishable by imprisonment in a county jail for not more than one
year, or by not more than one thousand dollars ($ 1,000), or by both that fine and imprisonment,
or by imprisonment in a federal prison.
If two or more persons violate subdivision (a) when there is a temporary restraining order,
injunction, or any other court order in effect prohibiting the behavior described in subdivision (a)
against the same party, they shall be punished by imprisonment in the state prison for two, three,
or four years.
For the purposes of this section, "harass" means engages in a knowing and willful course of
conduct directed at a specific person that seriously alarms, annoys, torments, or terrorizes the
person, or damages his personal property or possessions and that serves no legitimate purpose. *
**
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For the purposes of this section, "course of conduct" means two or more acts occurring over a
period of time, however short, evidencing a continuity of purpose. Constitutionally protected
activity is not included within the meaning of "course of conduct."
For the purposes of this section, "credible threat" means a verbal or written threat, including that
performed through the use of an electronic communication device, or a threat implied by a pattern
of conduct or a combination of verbal, written, or electronically communicated statements and
conduct, made with the intent to place the person that is the target of the threat in reasonable fear
for his or her safety or the safety of his or her family, or personal property or possessions and
made with the apparent ability to carry out the threat so as to cause the person who is the target
of the threat to reasonably fear for his or her safety or the safety of his or her family or personal
property or possessions. It is not necessary to prove that the defendant had the intent to actually
carry out the threat. The present incarceration of a person making the threat shall not be a bar to
prosecution under this section. Constitutionally protected activity is not included within the
meaning of "credible threat."
For purposes of this section, the term "electronic communication device" includes, but is not limited
to, telephones, cellular phones, computers, video recorders, fax machines, pagers or synthetic
telepathy devices.
The sentencing court also shall consider issuing an order restraining the defendant from any
contact with the victim, that may be valid for up to 10 years, as determined by the court. It is the
intent of the Legislature that the length of any restraining order be based upon the seriousness of
the facts before the court, the probability of future violations, and the safety of the victim and his
or her immediate family.
For purposes of this section, "immediate family" means any spouse, parent, child, any person
related by consanguinity or affinity within the second degree, or any other person who regularly
resides in the household, or who, within the prior six months, regularly resided in the household.
Section 4. Punishment for threats
Any person or persons who willfully threatens to commit a crime which will result in death or great
bodily injury to another person, with the specific intent that the statement, made verbally, in
writing, or by means of an electronic communication device, is to be taken as a threat, even if
there is no intent of actually carrying it out, which, on its face and under the circumstances in
which it is made, is so unequivocal, unconditional, immediate, and specific as to convey to the
person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and
thereby causes that person reasonably to be in sustained fear for his or her own safety or for his or
her immediate family's safety, shall be punished by imprisonment in a federal prison not to exceed
one year..
For the purposes of this section, "immediate family" means any spouse, whether by marriage or
not, parent, child, any person related by consanguinity or affinity within the second degree, or any
other person who regularly resides in the household, or who, within the prior six months, regularly
resided in the household.
"Electronic communication device" includes, but is not limited to, telephones, cellular telephones,
computers, video recorders, fax machines, pagers or synthetic telepathy devices
Obscene, threatening or annoying communication
(a) Every person or persons who, with intent to annoy, telephones or makes constant contact by
means of an electronic communication device with another and addresses to or about the other
person any obscene language or addresses to the other person any threat to inflict injury to the
person or any member of his or her family, or any property or personal possessions is guilty of a
misdemeanor. Nothing in this subdivision shall apply to telephone calls or electronic contacts made
in good faith.
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(b) Every person or persons who makes repeated telephone calls or makes repeated contact by
means of an electronic communication device with intent to annoy another person at his or her
residence, is, whether or not conversation ensues from making the telephone call or electronic
contact, is guilty of a misdemeanor. Nothing in this subdivision shall apply to telephone calls or
electronic contacts made in good faith.
(c)
Every person or persons who makes repeated telephone calls or makes repeated contact by
means of an electronic communication device with the intent to annoy another person at his or her
place of work is guilty of a misdemeanor punishable by a fine of not more than one thousand
dollars ($ 1,000), or by imprisonment in a federal prison for not more than one year, or by both
that fine and imprisonment. Nothing in this subdivision shall apply to telephone calls or electronic
contacts made in good faith. This subdivision applies only if one or both of the following
circumstances exist:
(1) There is a temporary restraining order, an injunction, or any other court order, or any
combination of these court orders, in effect prohibiting the behavior described in this section.
(2) The person or persons makes repeated telephone calls or makes repeated contact by means of
an electronic communication device with the intent to annoy another person at his or her place of
work, totaling more than 10 times in a 24-hour period, whether or not conversation ensues from
making the telephone call or electronic contact, and the repeated telephone calls or electronic
contacts are made to the workplace of an adult or fully emancipated minor who is a spouse, former
spouse, cohabitant, former cohabitant, or person with whom the person has a child or has had a
dating or engagement relationship or is having a dating or engagement relationship.
(d) Any offense committed by use of a telephone may be deemed to have been committed where
the telephone call or calls were made or received. Any offense committed by use of an electronic
communication device or medium, including the Internet, may be deemed to have been committed
when the electronic communication or communications were originally sent or first viewed by the
recipient.
(e) Subdivision (a), (b), or (c) is violated when the person acting with intent to annoy makes a
telephone call requesting a return call and performs the acts prohibited under subdivision (a), (b),
or (c) upon receiving the return call.
(f) If probation is granted, or the execution or imposition of sentence is suspended, for any person
or persons convicted under this section, the court may order as a condition of probation that the
person participate in counseling.
(g) For purposes of this section, the term "electronic communication device" includes, but is not
limited to, telephones, cellular phones, computers, video recorders, fax machines, pagers or
synthetic telepathy devices.
Section 5. Assault and battery with an electronic or directed energy weapon

Any person or persons who in the course of organized stalking and harassment, commits an assault
upon the person of another with an unauthorized directed energy weapon shall be punished by
imprisonment in a federal prison for two, three, or four years or by a fine not exceeding ten
thousand dollars ($10,000).
For the purposes of this section the term directed energy weapon is defined as any device that
directs a source of energy (including molecular or atomic energy, subatomic particle beams,
electromagnetic radiation, plasma, or extremely low frequency (ELF) or ultra low frequency (ULF)
energy radiation) against a person or any other unacknowledged or as yet undeveloped means of
inflicting death or injury; or damaging or destroying, a person (or the biological life, bodily health,
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mental health, or physical and economic well-being of a person via land-based, sea-based, or
space-based systems using radiation, electromagnetic, psychotronic, sonic, laser, or other energies
directed at individual persons or targeted populations for the purpose of information war, mood
management, or mind control of such persons or populations; or by expelling chemical or biological
agents in the vicinity of a person.
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Richmond council passes resolution

supporting ban on space-based
weapons
May 20, 2015

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9 comments
The Richmond City Council passed a resolution Tuesday supporting a ban on space-based
weapons after a lengthy discussion over whether individuals are being psychologically
and physically harmed by exotic government-patented attacks from high in the sky.
Councilmember Jovanka Beckles, a member of the Richmond Progressive Alliance (RPA),
introduced the resolution, saying it begins to address concerns of a Richmond resident
who claims shes been targeted by remote transmission from space-based weaponry.
Others claiming to have suffered physical and psychological attacks traveled from around
the country to speak at Tuesdays council meeting. One speaker claimed to have been
zapped multiple times right before his testimony at council.
The resolution supports the Space Preservation Act and Space Preservation Treaty
permanently banning space-based weapons, even though the legislation first introduced
by Rep. Dennis Kucinich in 2001 has never gained traction in Congress. It appears that
Richmond is the first municipality in the U.S. to take up this lofty issue in more than a
decade. In 2002, the City of Berkeley passed a similar resolution supporting the ban.
Conspiracy theorists believe the resolution is a step toward ensuring secret weaponry
such as chemtrails, which are trails left in the sky by high-flying aircraft that supposedly
emit a chemical or biological agent, can no longer target unwitting citizens. For RPA
members on the council, the resolution is also an anti-war initiative.
RPA members on council, Gayle McLaughlin and Eduardo Martinez, also voted in favor of
the resolution. Vice Mayor Jael Myrick and Councilmember Nat Bates were the final two
yes votes, although Bates claimed he was confused by the discussion.
Im going to support the resolution for the simple reason that we have voted on a lot of
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dumb ideas, Bates said.

Mayor Tom Butt voted no, saying he believes the conspiracy theory behind space-based
weapons is above the heads of city leaders and has taken time away from more pressing
city matters such as the budget deficit, potholes, and crime. Butt has complained in the
past about the RPA attempting to hijack council sessions to push a radical agenda
regardless of whether the issues are important to Richmond residents.
The mayor also pointed to a signed 1967 treaty banning the militarization of space.
The other dissenting vote came from Councilmember Vinay Pimple, who pointed out that
supporting a limitation on the ability of the U.S. to defend against attacks from longrange missiles might not be wise.
Pimple disputed what he called knee-jerk reactions from RPA members who depicted
President Ronald Reagans proposed space-based anti-missile program of 1983, known as
the Star Wars initiative, as inherently evil. The Cold War initiative was intended to
defend against USSR missiles during the Cold War and was shelved not for the projects
moral ambiguity but its perceived effectiveness, Pimple said.
The idea behind Star Wars, Pimple said, is you can knock out someones weapons long
before they enter your air space. The U.S. used Patriot missiles to knock out Iraqi Scuds
targeting Israel and Saudi Arabia, he added.
RPA members, however, argued that this issue is not just about war but about the
individuals in the U.S. who believe governments are using futuristic weapons in space for
the purpose of inflicting pain and mind control. Martinez argued that they may very well
be telling the truth. He recalled a science fiction novel he wrote a paper on during college
that predicted truths 20 years in advance.
Its easy for me to see that things which are wrong can happen because we have the
wrong mindset, Martinez said.
Myrick said he supported the resolution because he doesnt support war.
The weaponization of spaceis something I think is extremely immoral and we should
not be as a nation engaging in, Myrick said. Maybe some wars are unavoidable, that
may be true. But whatever we can do to get our country away from that mindset..thats
why I support this resolution.
Amy Lee Anderson, a targeted individual who brought the matter to Beckles attention,
was thankful that the council took up the issue.
No where in the United States, no targeted individual can get this support, Anderson
said. We just needed one person, one city. Because of that, you all our heroes. We are
dying within because the technology is so sophisticated. Its hard for someone who has
no experience to fathom it, its so sophisticated.
Related posts:
1. Richmond councilmember pushes city resolution banning exotic space-based

weapons
2. Dirty bomb drill in Richmond alarms conspiracy theorists, including Alex Jones
Comments
1. Cmon Richmond Standard.your bias is showing!

Advanced
Stan
CATERBONE
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Medi
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Stan J. Caterbone
1250 Fremont Street
Lancaster, PA 17603
scaterbone@live.com
717-669-2163
October 10, 2015
Federal Whistleblower
and
Targeted Individual (Victim)
of U.S. Sponsored Mind Control
Executive Summary
Updated on October 10, 2015
I remain,
Stan J. Caterbone
PRIVILEGED AND CONFIDENTIAL: Stan J. Caterbone, Pro Se Litigant, and the Advanced Media
Group are victims of U.S. Sponsored Mind Control and has been engaged in litigation in both
Federal and State courts seeking financial remedies and a resolution of his Civil Liberties and
his Constitutional Rights. In 1987 Stan J. Caterbone, while managing the financial firm the he
founded, Financial Management Group, Ltd., Stan J. Caterbone became a Federal Whistleblower
when, as a shareholder, he claimed fraud and misconduct within the international arms dealer
and local start-up International Signal & Control, Plc., Some 4 years later ISC was indicted and
plead guilty to the 3rd largest fraud in U.S. history, some $1 Billion and selling arms to Irag via
South Africa. In June of 2015 Stan J. Caterbone became the Movant in the U.S. District Court
for the Eastern District of Pennsylvania case No. 5:14-cv-02559-PD for the Habeus Corpus
Petition of Lisa Michelle Lambert. The case is now before the U.S. Third Circuit Court of
Appeals, Case No. 15-3400.
Advanced
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ADVANCED MEDIA GROUP, LTD.,
&
STAN J. CATERBONE
Federal Whistleblower (Federal False Claims Act Violation in 1987 re ISC)
Targeted Individual of U.S. Sponsored Mind Control
and Directed Energy Devices and Weapons
EXECUTIVE SUMMARY
copyright 2009
Ya know what, I am beginning to analyze this War on Terror and am having difficulty understanding
it all. To me the most effective fundamental fight against Extreme Terrorism is to reduce the motive; or the
Hatred Against America. No one seems to talk about that subject. How do we reduce that Hatred Towards
America and the West?
See, from my perspective, my situation is very disturbing. I mean we have the United States Torturing Me, a
U.S. Citizen for no good or valid reason. I have warned EVERYONE about using my situation to feed this
HATRED towards America.
Low and behold a week or so ago I have had several Muslims sign up as Followers to my
www.scribd.com/amgroup01 online webspace, which I use to post documents. The following being the most
prominent IKWAN Scope, "The Largest Muslim Brotherhood's Scope on the Web":
http://ikhwanscope.net/main/
There have also been several Muslim individuals who signed up as followers around the same time, a week
or so ago. They have also signed up as followers on my www.twitter.com/StanCaterbone webspace.
You must understand, I am a VERY Patriotic Person and live a very patriotic life - I believe in the
U.S. Constitution and Our Founding Father's vision for America; I support Our Military and our
Troops; I believe in the Rule of Law; I am a Practicing Catholic, and have been my whole life; I
Believe in the TRUTH; I believe in Right v. Wrong; Good v. Evil; and finally I believe in God. What
do you believe in?
Posted on the Yahoo Fulton Bank Stock Message Board, January 7, 2010
Date Updated:
October 10, 2015
Date Completed:
Date Initiated:
July 28, 2009

July 8, 2009
Stan J. Caterbone
scaterbone@live.com
Advanced
Stan
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Stan
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UDATE OF SEPTEMBER 27, 2015

In 2015 Stan J. Caterbone and Advanced Media Group had to again return to local,
state, and federal courts. Again the obstruction of due process, the local gang stalking, torture,
trespass, thefts, and the like began in earnest.
From the fabricated Petition for Involuntary
Psychiatric Commitment of April 2010 by Detective Clark Bearinger, until January of 2015, Stan J.
Caterbone and Advanced Media Group had been in seclusion and in a state of rehabilitation and
rest due to the forced medication by Fairmount Behavioral Hospital and Dr. Silvia Gratz.
The
psychotropic drugs reduce your motor skills and put you in an extreme state of confusion.
By
the
end
of
the
summer
of
2010
every
social
media
site,
including
the
www.amgglobalentertainmentgroup.com website was taken off-line due to the intimidation and

coercion by Detective Clark Bearinger.
In May Stan J. Caterbone had again endured the Attacks and Torture from the
employees of the Lancaster County Courthouse, and the Lancaster County Government Building.
Then soon after the Residents of Lancaster County engaged in a massive Organized Stalking
Campaign. In addition an extreme Computer Hacking Campaign was initiated and executed in
an effort to again SILENCE Stan J. Caterbone and Advanced Media Group.
And Again, the
Lancaster City Police Department took the lead role. As usual Stan J. Caterbone summoned state
and federal authorities for help and assistance, including direct communications with the White
House, the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office and
Kathleen Kane, The Pennsylvania State Police, the Pennsylvania General Assembly, several U.S.
Congressmen, and of course the Lancaster County District Attorney's Office.
Since August 1,
2015 the Geek Squad had performed diagnostics and repairs six (6) times due to computer
hacking. On at least 2 occasions the entire hard drive had to be wiped clean and restored.
On June 23, 2015 Stan J. Caterbone was named MOVANT in the 2014 Habeus
Corpus Petition by Lisa Michelle Lambert, Case No. 14:02559 in the U.S. District Court
for the Eastern District of Pennsylvania after filing an Amicus on the case. Judge Paul
Diamond was presiding since it's filing in 2014. However, the Petition was not able to
be granted and the case was stalled on jurisdictional law based on new and compelling
evidence, or lack there of.
The Amicus was filed to cure that deficiency with direct
witness corroboration to the Prosecutorial Misconduct and Innocence of Lisa Michelle

Lambert.
In fact a working theory was filed that suggested that the East Lampeter
Police Department engaged in a strategy of Entrapment that lead to the unfortunate

murder in 1991. This, would of course, allow a wrongful death claim to be filed by the
Show family. The case is now before the Third Circuit Court of Appeals, Case No. 153400. There are three (3) questions that the Third Circuit may rule on; whether to free
Advanced
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Lisa Michelle Lambert, or grant her her Habeus Corpus, and whether to grant Summary
Judgment to Stan J. Caterbone in all civil actions in both state and federal courts.
Two weeks later, on July 9, 2015, Detective Clark Bearinger filed another fabricated
Petition for Involuntary Psychiatric Commitment. And again Stan J. Caterbone endured 7 days in
the Fairmount Behavioral Hospital in Philadelphia.
However, this time there was
no
MANDATORY Treatment Program Ordered by the Lancaster County Court of Common Pleas.
So Stan J. Caterbone continued filing in the courts for assistance and resolution. In August, in a
desperate attempt to stop the local torture campaign, another Emergency Injunction was filed in
the Lancaster County Court of Common Pleas. On August 6, 2015 Stan J. Caterbone went so far
as to undertake a Professional Polygraph Test administered by Bonnie Lee of Polygraph Solutions
of West Chester, Pennsylvania. The test ended up being 4 grueling hours of torture and a scam of
$600.00.
On July 9th , 2015 a Private Criminal Complaint was filed against Detective Clark Bearinger,
Officer Williams, Officer Binderup, and 2 unidentified patrolman.
The Complaint contained
allegations of torture and abuse at every moment of contact.
The Lancaster City Police
Department were so desperate for retaliation from the Amicus filing in the Lisa Michelle Lambert
case, that they actually broke the door in of 1250 Fremont Street in order to execute the
fabricated 302 petition. The Complaint was denied by the Lancaster County District Attorney on
August 8th . The Complaint is now under a Petition for Review by the Lancaster County Court of
Common Pleas.
On August 17, 2015 another Emergency Injunction for Relief was filed in the Lancaster
County Court of Common Pleas, Case No. 15-06985. The Injunction was heard by Judge Jeffrey
Wright, who dismissed it as frivolous. An appeal, MD 1561, is pending in the Superior Court of
Pennsylvania.
In addition, by September 26, 2015 Stan J. Caterbone had been granted Electronic Filing
Privileges in the local, state, and federal courts. This should alleviate the fraud and abuses of the
U.S. Postal Service and the computer hackers.
In 2015 Stan J. Caterbone identifies a trend that suggests that the Lancaster County
community-at-large was subject to either community targeting or community hypnosis.
The
community targeting theory is supported by experts Jullianne McKinney, Cheryl Welsh, and Dr.
John Hall. The community hypnosis theory is supported by direct personal relationships with the
Amazing Kreskin, Samuel P. Caterbone and Stan J. Caterbone.
Advanced
Stan
CATERBONE
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J. Media
Medi
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In September of 2015 Stan J. Caterbone begins to digitize a library of approximately 45

audio cassette tapes from his father, Samuel P. Caterbone. The tapes range in date from 1971 to
1996. The tapes prove an identical targeting campaign against both Samuel P. Caterbone and
Stan J. Caterbone.
In addition the tapes confirm that Steven P. Caterbone, brother of Stan J.
Caterbone, was most likely a target dating back to the early 1960's. In addition, the death of
Samuel P. Caterbone on July 20, 2001 was confirmed to be that of murder, not natural causes.
In the early 1990's Dr. Phillip Caterbone, brother, had been solicited by the National
Institute of Health, or NIH in Washington, D.C., for a fellowship to research and catalog a study to
find a genetic marker for depression in the CATERBONE family.
Phil interviewed all living
descendants and relatives of my father, Samuel P. Caterbone, Jr., and took blood samples. I am
alleging that this was a deliberate act to continue the cover story of mental illness to distract and
provide plausible deniability for any linkage to U.S. Sponsored Mind Control.
Advanced
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HISTORY
In 1987 Stan J. Caterbone went public with allegations of fraud within International Signal
and Control, or ISC as they were commonly referred.
After discussions with ISC and United
Chem Con officials (an ISC/James Guerin straw company), and as a shareholder of record since
1983 of ISC, Stan J. Caterbone had a meeting with an ISC executive on June 23, 1987, which
resulted in a 22 year legal odyssey. The discussions involved a joint venture with his company,
Financial Management Group, Ltd., or FMG, Ltd., but ended in disclosure of his recent public
allegations of fraud. Four years later, ISC founder and chairman James Guerin, and other officials
and companies pleaded guilty to a $1 Billion Dollar Fraud and export violations including the
selling of arms through South Africa to Iraq and Sadaam Hussein.
However, money, power,
influence and public corruption had been used to cover-up the activities and Federal False Claims
Act violations of Stan J. Caterbone for the next eighteen years. There ensued a total blockade of
all United States Courts for all redress and remedy available in accordance with federal, state, and
local laws.
This included recovery of his business interests; intellectual property; real estate;
personal and business real property; his unblemished and impressive reputation; and his most
valuable asset - the ability to produce income. This might be legally referred to as the Right-ToWork under federal statutes.
Notwithstanding, Stan J. Caterbone has never made a bad
investment or developed a business that did not make a profit over the next 22 years.
This
includes two real estate properties that were illegally seized through foreclosure proceedings.
Since 1987 Stan J. Caterbone has been a prisoner and enemy of the state.
ISC was a
Department of Defense (DOD) Contractor and a partner with United States Intelligence Agencies
since it's beginings in the early 1970's. One of it's first contracts was Project X with the National
Security Agency or NSA of Ft. Meade, Maryland.
In summary, the following are facts and part of the public record regarding
SIGNAL & CONTROL OR ISC:
INTERNATIONAL
Once the third (3rd) largest employer in the County of Lancaster, Pennsylvania, with
over 5,000 employees.
James Guerin, founder and CEO was once the largest philanthropist to charitable
organizations in the County of Lancaster, Pennsylvania.
The ISC/Ferranti Scandal was the third (3) largest white-collar fraud within the United
States as of 1992.
Advanced
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The following are some of the public officials and politicians associated with ISC:
George H.W. Bush, former U.S. President, and Director of the Central Intelligence
Agency (CIA).
Robert Gates, former Director of the Central Intelligence Agency (CIA) and current
Secretary of Defense.
Bobby Ray Inman, former Board of Directors if ISC, former Director of the NSA, and
currently associated and directly involved with Mind Control Research organizations.
Alexander Haig, former U.S. Secretary of State, and ISC lobbyist and Board of
Directors?
Joseph McDade, former Pennsylvania House of Representative and Chair of the

Appropriations Committee who was later investigated for the United Chem Con
scandal.
Carlos Cardoen/Cardoen Industries, a joint venture partner with ISC and arms
merchant for the cluster bomb who eventually sold to Iraq and other Middle Eastern
Countries under U.S. sanctions.
ISC was credited with the design of the cluster bomb, and has patents filed in the U.S.
Patent Office.
In 1987 ISC completed the merger with the 3rd largest defense contractor of Great
Britain, Ferranti International; who paid $1 billion dollars for ISC and all of it's
subsidiaries.
ABC News/Financial Times aired 3 episodes on ABC Nightline with Ted Koppel
regarding the ISC/CIA defense weapons; technologies; and cluster bombs to Iraq
story and lead into the allegations that then nominee for the Director of CIA Robert
Gates was involved with ISC and the selling of arms to Iraq.
ABC News 20/20 aired a story on the ISC/CIA efforts to sell cluster bombs to Saadam
Hussein and Iraq on February 1, 1991 days after the start of the Persian Gulf War I,
with the initial bombing raid destroying a cluster bomb factory built in Iraq by
Carlos Cardoen.
On July 1st and 2nd of 1987 Stan J. Caterbone solicited the legal counsel of Lancaster
Attorney Joseph Roda for counsel regarding, FMG, Ltd., International Signal &
Control (ISC); Commonwealth Bank, etc., and was billed for his services. Joseph
Roda did absolutely nothing but refute Stan J. Caterbone's claims and would not
believe him.
In Clark v. Guerin (CI-1990-0074 Lancaster County Court of Common Pleas),

Lancaster Attorney Joseph Roda represented William Clark, ISC's in-house legal
counsel, and never mentioned any conflict to Stan J. Caterbone in 1987.
In Clark v. Guerin (CI-1990-0074 Lancaster County Court of Common Pleas), James

Guerin deposited $1.75 million dollars into an escrow account at Fulton Bank,
Lancaster, County.
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Christopher Underhill of Harman, Underhill & Brubaker, represented James
Guerin. In 2005 Christopher Underhill represented the Manheim Township Police
Department (05-cv-2288 U.S. District Court for the Eastern District of
Pennsylvania) CATERBONE v. Lancaster County Prison, et. al.,.

Philadelphia Attorney Joseph Tate represented James Guerin and ISC, and in 2007
Joseph Tate represented Scooter Libby during his federal prosecution by U.S.
Special Prosecutor Fitzpatrick.
THE MANIFEST OF A COVER-UP

Not only did the allegations of fraud within ISC have to be silenced at a time when merger
negotiations were ongoing with Ferranti, but all of the fraud; extortion; public corruption;
burglaries; civil rights violations; anti-trust and intellectual property right violations; lender
liability torts; false arrests; false imprisonments; as well as other civil and criminal activities had
to be covered up and buried in bureaucratic red tape.
uncovered and discovered to this day.
Information and findings are still being
Contrary to popular belief, up until 1996 a grand jury
investigation into ISC was still ongoing. It is not known whether it has closed or not. All of these
activates constitute a RICO crime due to the pattern and organization of the perpetrators. The
pattern and source of the activities can be traced back to 1987, with subgroups changing over
time, but still engaging in the same practices. The following plan of action was followed in order
to perpetrate the cover-up:
Totally discredit Stan(ley) J. Caterbone and any and all allegations in every way
possible.
Fabricate a history of mental illness.

Fabricate a criminal record.
Attach his character and honesty with rumors and propaganda.
Extort and maintain his net worth to $ zero or load him with debts.
Keep him out of any profession and or occupation when and where possible.
Totally isolate him and disenfranchise him from his friends, colleagues, and family
into a life of solitaire.
Somehow persuade the community of Lancaster County to buy into this plan of
action through money, favors, etc.,
Always keep attorneys and anyone remotely involved with the legal community
away at times when efforts for justice are pursued.
When attempts to enter the U.S. legal system arise, isolate, harass, and extort
any monies and/or possessions of value.
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Change the history of events and the truth.

THE COURTS AND THE UNITED STATES LEGAL SYSTEM
For 18 years, (from 1987 until 2005) it has always been fairly easy to keep these issues
from court dockets and judges.
During these years Stan J. Caterbone had solicited at least
twenty attorneys, some from large firms with national recognition in their respective fields of
specialties. Attorneys from New York City to Santa Barbara and San Diego California were visited
and consulted as well as a group of ex FBI agents who specialized in white collar crime that are
now globally recognized. However, the money and influence of persons and entities that wanted
these issues silence always prevailed. The issues were so complex and convoluted, and involved
such high profile politicians and U.S. agencies, it was far easier to state that there was no case, or
their were no claims that would result in remedy or redress. Between the Republican Party and
the Department of Defense, the CIA and the NSA, there was not an attorney that could not be
influenced. The obstruction of justice and due process in this case is most likely unprecedented in
nature and in malice.
However in 2005 that all changed when Stan J. Caterbone appeared as a pro se litigant
representing himself, without any counsel, in the United States District Court for the Eastern
District of Pennsylvania in CATERBONE v. The Lancaster County Prison, et. al., or case no. 05-cv2288.
This case is still not settled and has been withdrawn by plaintiff Stan J.
Caterbone in October of 2008 after a successful ruling in the U.S. Third Circuit Court of
Appeals (07-4474) in September of 2008. The case will be continued upon the security
of evidence and the cease and desist of obstruction of justice and due process. On May
16, 2005 at the Federal Courthouse in Philadelphia, Stan J. Caterbone filed the case under seal.
One week later in the United States Bankruptcy Court for Eastern Pennsylvania in Reading,
Pennsylvania, again appearing as pro se, Stan J. Caterbone filed a petition for protection under
the Chapter 11 Bankruptcy Code, in case no. 05-23059.
These acts of entering the United States legal system with these issues triggered yet
another round of attempts to keep these cases from the courts and judges - Organized Stalking
with Directed Energy Devices and Weapons, built on a foundation of mental telepathy or total
Mind Control.
Advanced
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REMOTE VIEWING; ORGANIZED STALKING; DIRECTED ENERGY DEVICES AND

WEAPONS.
Organized stalking and harassment began in 1987 following the public allegations of fraud
within ISC. This organized stalking and harassment was enough to drive an ordinary person to
suicide. As far back as the late 1980's Stan J. Caterbone knew that his mind was being read, or
"remotely viewed". This was verified and confirmed when information only known to him, and
never written, spoken, or typed, was repeated by others. In 1998, while soliciting the counsel of
Philadelphia attorney Christina Rainville, (Rainville represented Lisa Michelle Lambert in the Laurie
Show murder case), someone introduced the term remote viewing through an email. That was
the last time it was an issue until 2005. The term was researched, but that was the extent of the
topic.
Remote Viewers may have attempted to connect in a more direct and continuous way
without success.
In 2005 the U.S. sponsored mind control turned into an all-out assault of mental
telepathy; synthetic telepathy; and pain and torture through the use of directed energy devices
and weapons that usually fire a low frequency electromagnetic energy at the targeted victim.
This assault was no coincidence in that it began simultaneously with the filing of the federal action
in U.S. District Court, or CATERBONE v. Lancaster County Prison, et. al., or 05-cv-2288.
This
assault began after the handlers remotely trained Stan J. Caterbone with mental telepathy. The
main difference opposed to most other victims of this technology is that Stan J. Caterbone is
connected 24/7 with a person who declares that she is Interscope recording artist Sheryl Crow of
Kennett Missouri. Stan J. Caterbone has spent 3 years trying to validate and confirm this person
without success. Most U.S. intelligence agencies refuse to cooperate, and the Federal Bureau of
Investigation and the U.S. Attorney's Office refuse to comment.
See attached documents for
more information.
In 2006 or the beginning of 2007 Stan J. Caterbone began his extensive research into
mental telepathy; mind control technologies; remote viewing; and the CIA mind control program
labeled MK ULTRA and it's subprograms.
Advanced
Stan
CATERBONE
Stan
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J. Media
Medi
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FAMILY HISTORY
If you listen to the propaganda machine and the community of Lancaster County,
Pennsylvania, including professionals, the family history of Stan J. Caterbone goes something like
the following:
Father, Samuel Caterbone, Jr., Schizophrenic who ran out on his family
because of nervous breakdowns while trying to run a small dry cleaning
business.
He traveled the world looking for the Blessed Mother Mary and
Space Aliens. He ended up living in government subsidized housing broke

and with a severe mental illness.
Brother, Samuel A. Caterbone, suffered from the very same illness has his
father, Schizophrenia, who finally killed himself trying to live in California.
Brother, Thomas W. Caterbone, suffered from the very same mental illness as
his brother, Stan J., Bipolar Mood Disorder, who ran a lawn business and
finally committed suicide at an early age.
Stan J. Caterbone, suffered from Bipolar Mood Disorder, or Manic Depression and
had a nervous breakdown in 1987 trying to compete in the financial services
industry. When he has his nervous breakdowns, he always threatens to sue
everyone in court and is deeply paranoid in thinking the whole world is
against him. He always spends all of his money during his fits of mania and
has delusions about his success as a businessman.
The Family History was formulated back in the 1960's when Samuel Caterbone, Jr.,
father of Stan J. Caterbone, became engaged in a black budget mind control program that began
during his service in the United States Navy as a radioman and air gunner.
Samuel Caterbone,
Jr., was most likely a direct product of MK ULTRA or one of it's subprograms. His brother, Samuel
A. Caterbone, was most likely part of the LSD experiments of MK ULTRA. Stan J. Caterbone is
most likely part of a program sponsored by the Department of Defense Agencies, such as DARPA
or the Defense Intelligence Agency (DIA). The facts of Stan J. Caterbone's intimate discussions
with both his father and brother over the years before they died, the totality of documents that
were preserved in their estate, including service records; letters; official court papers; high school
documents; and the like - all will prove that they were in fact part of MK ULTRA or one of it's
subprograms.
Advanced
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CATERBONE
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The following are the facts and the real record of the family history:
Samuel P. Caterbone, Jr., (Father) served in the Navy from 1943 to 1946 and
graduated with honors from Air Gunners School in Jacksonville, Florida. He was an exceptional
student/athlete while attending Lancaster Catholic High School, participating in the band as well
as sports. He was also his senior class secretary/treasurer. After the Navy, he went on to build a
successful dry cleaning business, which he is credited with inventing a filtration system for the
solvents.
He also developed a very good investment in real estate along the Manheim Pike,
owning several properties. By his own writings and from his personal accounts to me, he was
definitely a remote viewer or data miner for some U.S. Agency with telepathic abilities.
His
viewing is documented to have begun back in the early 1970's. He also suffered from organized
stalking, and was considered an enemy and prisoner of the state. Back in the 1960's, he was a
world traveler, this is documented by his passports. Samuel P. Caterbone, Jr., may have been a
covert carrier for someone in intelligence. Samuel P. Caterbone, Jr., had his mental health history
laced with electro shock therapy. Electro Shock Therapy Experiments is another subprogram of
MK ULTRA. In addition, and especially disturbing is his criminal record with the Lancaster City
Police Department and the Lancaster County Court of Common Pleas.
In 1973 Samuel P.
Caterbone, Jr. was convicted of forging a 2 checks from the Caterbone Cleaners, Inc., checking
account.
The one check to Joe the Motorists Store at the Manor Shopping Center was never
entered into evidence, it was for a total of $70.00. The other check was made out to Lancaster
Attorney James Coho for $200.00 with "divorce proceedings" written in the memo. This was his
only criminal record. Samuel P. Caterbone, Jr., was sentenced to one year probation by President
Judge William Johnstone.
However, on August 29, 1973 after nine months, Judge Johnstone
wrote an ORDER releasing him from probation and ordering him to "leave the vicinity of the
County of Lancaster, Pennsylvania". The President Judge of Lancaster County Court of Common
Pleas literally threw my father out of Lancaster County for forging 2 checks from his own
corporation. In 1987 I was arrested for stealing my own files from my own company, Financial
Management Group, Ltd., You can research the life of Candy Jones and Kate O'Brien to learn more
on this topic. Samuel Caterbone, Jr., has left enough writings and documentation to know that his
life fits the model for targeted individuals, complete with economic ruin, isolation, disenfranchised
from family and friends, and of course a fabricated mental illness history. You can view most of
his record online.
On or about May 18, 2001 Samuel P. Caterbone Jr., finally received an
inheritance from his mother's (Mary Caterbone) estate.
The check was for some $70,000.00.
The estate was probated in November of 2000. Some two weeks later, on Memorial Day Weekend
of 2001, he had called me to come to New York City to help care for him.
He was in perfect
health until this time. In a matter of six (6) weeks he had succumbed to lung cancer. As per
Julianne McKinney,
former intelligence officer for the U.S. Army and victim activist of U.S.
Sponsored Mind Control, the weapons are lethal enough to kill and the one thing that I worry
Advanced
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about is that of dying of cancer (paraphrase). There is no doubt now that my father's death was
a murder, not natural.
Samuel A. Caterbone, (Brother) served in the United States Air Force in 1968 to 1970.
In 1991, Stan J. Caterbone accused the United States Government of using his brother, Samuel
A. Caterbone for part of the LSD experiments on mind control, or MK ULTRA. A notarized letter of
October 23, 1991 was sent certified mail to the California Attorney General on the subject matter,
with a return letter from the California Attorney General on January 14, 1992.
By his own
admission before his death, Samuel A. Caterbone disclosed to Stan J. Caterbone of the "bad LSD"
trips while in the Air Force. Since his death of December 25, 1984, Stan J. Caterbone and others
questioned the classification of suicide, and made allegations of foul play that was ultimately
responsible for his death. Finally in a meeting in Santa Barbara, California with the Santa Barbara
Public Guardian's Office, an office admitted that the death was more likely due to foul plan than
suicide.
Samuel A. Caterbone was also an exceptional student and athlete while attending
Lancaster Catholic High School.
After playing varsity football as a sophomore, he had an
unfortunate accident while deer hunting the following November.
While in the woods in
Bellefonte, Pennsylvania, his hunting pants caught fire trying to stay warm.
It left him in the
Lancaster General Hospital for months, going through painful skin grafts and isolation.
hunting accident interrupted his athletic career and scared his legs for life.
The
The Schizophrenia
diagnosis was a combination of LSD flashbacks and organized stalking and harassment.
Thomas P. Caterbone, (Brother) had an unfortunate transaction at Fulton Bank that set
a course of action that resulted in a suicide. Although diagnosed with Bipolar Disease and Manic
Depression -- embezzled and extorted monies were most likely the reason for his suicide in 1996.
Fulton Bank was involved in a fraud that took $72,000 from a real estate settlement closing and
lead to his total financial ruin and collapse in June of 1995. The funds were never recovered and
Fulton Bank is a defendant for a wrongful death claim in the United States District Court for the
Eastern District of Pennsylvania in CATERBONE v. Lancaster County Prison, et. al., 05-cv-2288.
FULTON BANK triggered a severe and lethal death blow to Thomas P. Caterbone, and as of this
day has refused to acknowledge any wrongdoing or remorse. Thomas P. Caterbone was also an
exceptional athlete. Playing for Lancaster Catholic High School, Franklin and Marshall College, the
Harrisburg Patriots, and even the Philadelphia Eagles. Tom also coached football at J.P. McCaskey
and Franklin and Marshall College.
Thomas P. Caterbone had a very successful lawn and
landscaping business before joining forces with John DePatto of United Financial Services and
selling residential mortgages.
John DePatto was the former head of Parent Bank, owned by
James Guerin and ISC. Parent Bank, owned by ISC also foreclosed on 2323 New Danville Pike,
Conestoga, Pennsylvania in 1988, which was owned by Stan J. Caterbone. Thousands of dollars
of equity was extorted in the process, despite still being short sold for a profit to Mr. Keith
Advanced
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Kirchner, an executive of Lancaster Newspapers and former graduate of Lancaster Catholic High
School.
Stan J. Caterbone is a remote viewer (at least one way in), is telepathic, and a
federal whistleblower with an exceptional entrepreneurial record in spite of all of his adversaries
and their assaults. In spite of the U.S. Sponsored mind control and torture, he has endured and
will prevail. Legally, Stan J. Caterbone has been able to preserve his claims, and progress his
legal challenges and claims through both the federal and state court system appearing pro se,
without the aid or expense of additional legal counsel. Some of his claims and briefs will most
likely be landmark decisions in years to come. Stan J. Caterbone was a 2-Sport MVP at Lancaster
Catholic High School, in both football and track. Stan J. Caterbone never received less than a B
grade in his four years of high school and had an 87+ average. Stan J. Caterbone excelled in
computer technologies, taking his first full term course in 1975, while in high school and
continuing into college at Millersville University, graduating with a degree in business
administration in 1980.
Stan J. Caterbone excelled profoundly at building his companies, first
beginning with Financial Management Group, Ltd., then working with Tony Bongiovi of Power
Station Studios and the "Digital Movie"; then building Advanced Media Group, Ltd..
Over the
years, despite the illegal seizures and foreclosures, Stan J. Caterbone has amassed a portfolio of
impressive real estate deals that have always paid off in profits, no matter how or when they
were sold.
The same was true of his businesses.
Financial Management Group, Ltd., was a
$20,000 dollar investment in 1986 and was still sold for approximately $100,000 two years later,
despite the false arrests and the extortion of most of it's real value and equity.
The mental health history and the criminal records were completely fabricated, and a
close review and investigation into the actual court records and hospital records can prove that in
very short fashion.
There are TWO (2) ways to quickly dispute the Mental Health History and
Record:
One - Review the word "Delusional; delusions; etc.,;
every instance of the word
used by mental health professionals, and the false reports by friends and family were associated
with facts, and matters of the official record, the complete opposite of the meaning of the word
"delusional". And they still exist to this very day.
Two - Review the 3 Fabricated Suicide Allegations of the following dates: August
10(?), 1987 at Burdette Tomlin Hospital (Cape May County New Jersey); February 18th(?), 2005
by Kerry Egan and the Southern Regional Police Department; and July 19, 2009 for the 302
Commitment by the Lancaster City Police Department at Lancaster General Hospital.
The Criminal Record is very similar, since 1987 Stanley J. Caterbone has had 31 false
arrests; formal charges and convictions dismissed prior to court proceedings or won on summary
appeals in the County of Lancaster, Pennsylvania; most of which Stan J. Caterbone appearing as
Advanced
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CATERBONE
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pro se (representing himself). These have resulted in civil complaints filed in 2008 in CATERBONE
v. The County of Lancaster, Pennsylvania in U.S. District Court for the Eastern District of
Pennsylvania.
THE PUBLIC RECORD

The Public Record is comprised of court filings and exhibits in U.S. Federal Courts;
Pennsylvania State Courts; and the Lancaster County Court of Common Pleas. In all some 40,000
pages of documents are now filed and electronically scanned or microfilmed in prothonotary
offices. In addition in both the U.S. Federal Courts and the Lancaster County Court of Common
Pleas there are more than 11 hours of audio recordings; some 3,000 scanned images; and
several video broadcasts of the ISC News broadcasts all stored on a CD-ROM and filed as an
exhibit to some of the law suits filed by Stan J. Caterbone and Advanced Media Group, as
plaintiffs. Stan J. Caterbone has over 100 court docket sheet numbers in federal, state, and local
courts.
There are also Pennsylvania Unemployment Compensation records; Department of Welfare

and Lancaster County Assistance Office records; Local Real Estate Tax records; Lancaster County
Tax Assessment records; Social Security Administration Benefits records; Lancaster Catholic High
School transcripts; Millersville University transcripts; all for Stan J. Caterbone, in addition to his
court filings.
For Samuel A. Caterbone, my brother, there are United States Air Force service
records; Lancaster Catholic High School transcripts; Millersville University transcripts; Social
Security Administration records; Santa Barbara County Guardian and Public Defender records;
and papers and documents persevered from his estate.
For Samuel P. Caterbone, my father, there are United States Naval records, Lancaster
Catholic High School transcripts; Social Security Administration records; Lancaster County
Assistance Office records; Local Real Estate Tax records; Lancaster County Tax Assessment
records; Samuel Caterbone Cleaners, Inc., corporate records; Real Estate Deeds and Mortgages;
Lancaster County Court of Common Pleas civil and criminal records; and of course papers and
documents persevered from his estate
PUBLIC WEBSITE ADDRESSES OF INTEREST:

www.freedomffchs.com
https://www.scribd.com
Advanced
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DOCUMENTS ATTACHED FOR REVIEW

** It is important to note that as of this writing, Remote Viewing has recently
been commercialized by corporate America, and certain Fortune 500 companies are
using Remote Viewers as consultants for trend analysis and market forecasts. This is
often the evolution of most technologies born out of the U.S. Department of Defense.
Top Secret experiments and the resulting technological advancements can stay
secretive for so long.
This has recently been used in a NBC story of the Television
drama "Medium" this last season.
On July 9, 2008 I had recorded an AM radio live
broadcast on WHAN Coast to Coast with a guest that was one of the leading Physicist
turned Remote Viewer and expert that testified to this same notion.
Dated: July 28, 2009

Stan J. Caterbone
scaterbone@live.com
The following are no longer in service:
www.advancedmediagroup.wordpress.com
www.scribd.com/amgroup01
www.facebook.com/scaterbone
www.twitter.com/StanCaterbone
www.mcvictimsworld.ning.com/profile/StanJCaterbone
http://www.youtube.com/advancedmediagroup
Advanced
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J. Media
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September 7, 2009
Stan J. Caterbone
Advance Media Group
1250 Fremont Street
Derrick Robinson
Freedom From Covert Harassment and Surveillance
P.O. Box 9022
Cincinnati, Ohio 45209
Phone 1-800-571-5618
Fax 1-866-433-4170
email: info@freedomfchs.com
Re: Is County of Lancaster, Pennsylvania Ground Zero for Organized Stalking and
Covert Surveillance?
Derrick,
My pleasure. Derrick, I was trying to get group rates at our new Lancaster Convention Center
Marriot Hotel last week, just as a little fact finding mission. I have a theory that I would like to
send your way. I thought it would be very fruitful to bring some TI's together for a conference,
unless you think the exposure would be harmful.
I believe that they try new models for harassment; organized stalking and surveillance on me
here in Lancaster. Remember, Lancaster is now one of the most "Watched Communities" in the
country. "With those cameras, the Safety Coalition will operate and monitor 165 cameras across
Lancaster City making Lancaster the most watched city of its size in the nation." See article
attached, Watching you: City to add 105 more cameras.
I believe that Lancaster may be ground zero for some of the models of organized stalking and
harassment that we TI's experience and wanted to get some reaction from Lancaster. Some
history on the Lancaster Convention Center. Dale High of High Industries is the lead partner in our
new convention center/hotel. It is first class all the way. Now in the late 1980's I was a joint
venture partner with Dale High in American Helix Technology Company/Advanced Media Group.
American Helix was a cd manufacturer and I and my company Advanced Media Group was the
CD-ROM division of American Helix. I was one of a handful of CD-ROM manufacturers in the
domestic United States back then. Also in 2005 I filed a civil action against the lead hotel, the
Eden Resort Inn, for trying to block the development and building of the Hotel/Convention Center,
see
attached.
Now, some history about Lancaster and the intelligence community. Back in the 1980's there were
several defense contractors located in Lancaster, the main being International Signal & Control,
which I, of course, blew the whistle on a billion dollar fraud and arms to Iraq.
Click here for an overview of ISC.
Click here to see the Lancaster Newspapers Archives regarding International Signal & Control, or
ISC.
Click here to view the live video of the WGAL-TV News Broadcast of October 31, 1991 the evening
of the ISC indictments. The U.S. Department of Justice and other U.S. Agencies held a Press
Conference in the Philadelphia Federal Courthouse to announce the indictments and $ Billion
Dollar Fraud.
Advanced
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Click here for Part 2 of the WGAL-TV 8 Broadcast.

Now politically, Lancaster is and has always been predominately Republican. Lancaster is one of
the oldest cities in the country and our courthouse was one of the first in this country. Lancaster
has one of the oldest fraternities of the Masons. Lancaster and the George W.Bush administration
has a close and very "interesting relationship". George H. Bush had a very close relationship with
ISC, and of course the NSA and CIA all had a very "close" relationship with International Signal &
Control, or ISC. The following are some transcripts for Ted Koppel and ABC News Nightline
regarding ISC and Arms to Iraq and the intelligence community. The transcripts are contained in
my Amicus for Case No. 2006-cv-2160 filed in the Eastern District of Michigan, Southern Division.
Now, Robert Gates, presently the Secretary of the United States Defense Department, and his
relationship to Lancaster. First of all, the attached video is the authentic transcript of Robert
Gates' confirmation hearing in September of 1991 for the Director of the Central Intelligence
Agency (CIA). If you fast forward to approximately 9:00:00 you will see the back and forth
questions from Senator Murkowski to Robert Gates regarding the allegations by several members
of the U.S. Senate Select Committee on Intelligence regarding his alleged involvement with ISC
and the Arms deals with Carlos Cardoen and the shipping of cluster bombs through South Africa
and on to Iraq. Of course, he denied all of the allegations.
Robert Gates also has relatives that live in Lancaster County, if fact he attended a wedding here a
few months ago, on May 3, 2009 at St. John Neuman Catholic Church in Manhiem Township,
Lancaster County. His wife has a niece that lives in Manheim Township.
Now, I'll give you the ABC News Nightline May 23, 1991 excerpt regarding ISC and the NSA,
National Security Agency:
"It all started legally, if covertly, back in 1974. That's when the National Security Agency, a supersecret U.S. Intelligence unit asked ISC to help complete project X, a chain of electronic listening
posts based at South Africa's Simonstown Naval Station. South Africa was using these posts to
follow Soviet submarine traffic off of the Cape of Good Hope. To ensure secrecy, ISC and the NSA
made sure shipments could not be tracked back to them. They created a company called Gamma
Systems Associates. In fact, this company was nothing more than a post office box at John F.
Kennedy Airport. Gamma was a cut-out. ... But this sanctioned covert operation was stopped in
1977 when President Carter, a strong opponent of South Africa's apartheid regime, told U.S. firms
to stop any military-related business with Pretoria. But ISC continue shipping electronics, some
civilian, some military, to South Africa. The in the early 1980's, South Africa began to intensify its
efforts at ballistic missile development. For ISC, that was a golden opportunity because on of its
top executives was a man named Clyde Ivey, an American electronics expert who has been the
father of South Africa's missile program. Ivey had extraordinary contacts in the nations defense
structure. Begining in 1984, federal investigators say, senior ISC exeutives, including Ivey, began
regular contacts with CIA officials." You can read the rest. The entire transcript of the May 23,
1991 ABC News/Nightline broadcast.
Now remember, George H. Bush was director of CIA. "He served in this role for 357 days, from
January 30, 1976 to January 20, 1977.[22] The CIA had been rocked by a series of revelations,
including those based on investigations by Senator Frank Church's Committee regarding illegal
and unauthorized activities by the CIA, and Bush was credited with helping to restore the
agency's morale.[23] In his capacity as DCI, Bush gave national security briefings to Jimmy
Carter both as a Presidential candidate and as President-elect, and discussed the possibility of
remaining in that position in a Carter administration[24] but it was not to be," according to
Wikipedia.
Now, lets get to Bobby Ray Inman, former Navy, Director of the National Security Agency (NSA),
former Director of International Signal & Control (ISC), and currently part of the Mind Control
industry. The following appears on the Welcome page of my website:
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
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15,
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2016
15,
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July
2016
11,
17,
15,
5, 2015
2015
2016
Saturday,
October
10,
"S.A.I.C. involvement in 1993 American Para psychological Association meeting arrangements, via
their 'Cognitive Sciences Laboratory'. Science Applications International Corporation is a big time
defense contractor, has held the largest number of research contracts of any defense contractor.
Bobby Ray Inman (ISC Board of Directors) is on its board of directors, among others."
by John Porter, CIA Program on Mind Control copyright 1996. In 1994, after Bobby Ray Inman
requested to be withdrawn from consideration as Bill Clinton's first Defense Secretary, his critics
speculated that the decision was motivated by a desire to conceal his links to ISC. Inman was a
member of the so-called "shadow board" of the company which was allegedly either negligent or
approved the exports." by Wikipedia on International Signal and Control, (ISC).
Now, lets list the former Navy personnel:
George H. Bush, former President of the United States, former Director of CIA.
James Guerin, President and Founder of International Signal & Control.
Bobby Ray Inman, former Director of the National Security Agency (NSA) and Director of
International Signal & Control, (ISC).
My father, Samuel P. Cateronne, Jr.
His father, Samuel J. Caterbone, Sr.
George Noory, of Coast to Coast Radio (just anecdotal, nothing assumed or alleged).
George W. Bush flew with the Navy.
James Cross
I will Finish later and add more.
Next we get to Jim Guerin's attorney back in 1989 through at least 1992. His name was Joseph
Tate, of Philadelpha. This link will take you to a document regarding Joseph Tate, James Guerin
and Joseph Roda, Esq., of Lancaster, my former attorney who said I fabricated everything back in
1987. The document contains a letter of September 12, 2005 from Special Prosecutor Patrick
Fitzgerald regarding Scooter Libby, Former Vice President Dick Cheney's Chief of Staff. the letter
involves Scooter Libby's Grand Jury Indictment for leaking Covert CIA Operative Valerie Plame
and eventually outing her.
Now in Austin Texas in July of 2005 I was detained by 2 Agents from The Defense Intelligence
Agency. I was merely visiting a Military Museum, that had old and vintage helicopters and
airplanes. near where my brother, Dr. Phillip Caterbone lived. I was visiting on my way to
California. While inside the museum 2 Agents from the Department of Defense Defense
Intelligence Agency escorted me outside to my Honda Oddesey and interrogated me making me
confirm that I was visiting and staying with my brother. They caused a problem for my brother's
Medical Practice by shaking up one of his secretaries. The reviewed my court documents for
CATERBONE v. Lancaster County Prison, et. al., Case No. 2005-cv-0288 filed in the U.S. District
Court for the Eastern District of Pennsylvania. The demanded that I stay off all military bases
before releasing me.
In 2006 I was telepathic with an older NSA executive on many occasions who wanted to meet me
at the Clipper Stadium who told me he wanted to rent a facility in Lancaster for a training
exercise. I told him to to and see Dale High and the High Group for space at the Greenfield
Industrial Park. He said he was retiring and that our discussions were keeping him a few weeks
longer than expected. We had intimate discussions of my history and the Chesapeake Bay Area.
We also discussed Sheryl Crow, and he told me his wife was a fan. I turned him on to her new
album, Wildflower, and he said she liked it. We had to disengage because he was being harassed
by other telepathic assailants.
My former secretary (Susan Bare) at Pflumm Contractors, Inc., where I was controller and was
hired to rescue the company from near bankruptcy in 1993, told me that her husband, Ross Bare,
who grew up just some 10 or so doors from me, worked for the NSA. She disclosed this soon
after I hired her in 1994 or 1995.
I will finish later and add to this allegation. This is a work-in-progress.
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
Page
Page
Page
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2016
11,
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5, 2015
2015
2016
Saturday,
October
10,
Stan J. Caterbone
scaterbone@live.com
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
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2016
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5, 2015
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2016
Saturday,
October
10,
AFFIDAVIT
BE IT ACKNOWLEDGED, that Stanley J. Caterbone, Financial Management Group, Ltd.,
FMG Advisory, and and all affiliates, Pro Financial Group, Ltd., Advanced Media Group, Advanced
Media Group, Ltd., Global Entertainment Group, Ltd., Power Productions I, Radio Science
Laboratories, Ltd., of Lancaster County, Pennsylvania, the undersigned deponent, being of legal
age, does hereby depose and say under oath as follows:
I am now convinced that the situation surrounding my litigation and all factors attributed
to my financial and professional demise bore out of the fact that my Father, Samuel P. Caterbone
was a victim of U.S. Sponsored Mind Control, in the truest sense of the words.
The
whistleblowing activities of 1987 either were a coincidence or I was set up in the very beginning
by Pennsylvania State Senator Gibson Armstrong (former stock broker) in 1983 when he solicited
me to purchase the ISC stock. The preceding would have been the perfect cover story for my
demise; that I was involved in a fraud. Following this analysis would lead one to conclude that
the collateral damage from the activities of my financial ruin always left my fellow businesses in
financial ruin, for example Robert Kauffman and Michael Hartlett, partners, and the shareholders
and affiliated professionals of Financial Management Group, Ltd., Tony Bongiovi and Power Station
Studios, Jim and Lynn Cross as Cross Microwave Consultants, Dave Dering, Scott Robertson, and
James Boyer as American Helix/High Industries, Ralph Mazzochi and Gallo Rosa Restaurant;
Pflumm Contractors, Inc., Mike Caterbone's AIM Wholesaler's Business, Dr. Phillip Caterbone, D.O.
And associated Primary Care Practices of Austin, Texas, Sam Lombardo and Ralph Mazzochi as
S.N. Lombardo Associates for Lancaster Avenue Project, Sheryl Crow Singer Songwriter, my
immediate family, friends, and relatives.
Following this analysis would lead one to concur that the legal and financial remedies
would only be reconciled by the above named parties enjoining my civil litigation. This AFFIDAVIT
is to be considered a legal and binding document to accomplish that remedy.
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
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Tuesday
March
December
15,
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March
2016
15,
3/15/2016
July
2016
10,
11,
17,
15,
5, 2015
2016
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
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2016
11,
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15,
5, 2015
2016
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
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Control
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2016
11,
17,
15,
5, 2015
2016
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
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2016
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5, 2015
2016
scaterbone@live.com
Stan J. Caterbone
1250 Fremont Street
Lancaster, PA 17603
ILLEGAL NO TRESPASS NOTICES AGAINST

STAN J. CATERBONE AND ADVANCED MEDIA GROUP
Violations of Public Accommodations Law re Discrimination
and Anti-Trust Violations with False Statements to Authorities
December 6, 2015
Work-In-Progress
Community Stalking and Organized Libel/Slander Campaign Strategy Issue a few every
year to support false arrests; false imprisonment; fabricated mental illness history. In addition to
isolate by prohibiting entrance to major entertainment venues with good live music. Prohibit from
defending against the lies and slander in public to a minimum. Also, destroy history of strong
Christian values and church attendance on a weekly basis by keeping away from church. The
Millersville University Graduate Studies No Trespass Notice was accommodated by the denial of
entitled benefits of LETA Job Training Education Course of the Paralegal program at HACC during
the same time period.
1. David Pflumm Properties by David Pflumm Served by State Constable in June of

2005, original not signed by David Pflumm
2. Eden Resort Inn, by Drew Anthon, Owner Sent via 1st Class Mail in 2005.
3. Barley Snyder, LLC Lancaster Office, by Shawn Long, Esq., Attorney representing
Fulton Bank in 2006 Sent via 1st Class Mail
4. Lancaster Newspapers, Inc., by Steve Weaver, Manager in 2006, No Notice,
Corraborated by Jack Buckwalter, Chairman and CEO and George Warner, Atty with Barley
Snyder, LLC, No Formal Notice, allowed to reenter in 2015.
5. Ruby Tuesday, Manor Shopping Center, Lancaster, by Manager and Lancaster City
Police in 2006, No Formal Notice, allowed to reenter in 2015.
6. Alley Kat Restaurant and Bar, Lancaster by Bartender Ms. Santinello, Brett Stabley,
and Lancaster City Police, No formal Notice in 2006
7. Village Nightclub, Lancaster by George in 2008, No Formal Notice
8. Marion Court Restaurant, Lancaster, by Security Personnel, corroborated by Michael
Geesey, in 2008, No Formal Notice, allowed to enter in 2015.
9. Valentinos Cafe, Lancaster, by Jeanine, Bartender,in 2008, corroborated by John
Valentino, Owner, No Formal Notice
10. Brunswick Hotel, Lancaster, by Staff Employees, in 2008, No Formal Notice
11. Lancaster County Library and Duke Street Business Center, by Executive Director in
March of 2009, by 1st Class Mail
12. Anne Bailey's Restaurant and Bar, Lancaster, by Manager in 2009, No Formal Notice
13. Millersville University Graduate Studies and Millersville University, Millersville, by
Lori Austin, Judicial Affairs, via Certified Mail in June of 2009.
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
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2016
15,
3/15/2016
July
2016
17,
15,
5, 2016
2015
14. TGIF Friday's, Lancaster, by Manager, in January of 2010, No Formal Notice

15. Lucky Dog Restaurant and Bar, Lancaster, by Robert Donnelly, in January of 2010, No
Formal Notice
16. Saint Mary's Catholic Church, Lancaster, by Don Spica, Usher and Lancaster City Police
Department in Feb of 2010, No Formal Notice
17. O'Halloran's Bar, Lancaster, March 25, 2010 by Male Staff Employee. No Formal Notice.
18. Fulton Bank, Fulton Financial Corporation, March 26, 2010 by Susan Follmer, Security
Officer.
19.Lancaster General Hospital, Gary S. Gehman, MD, May 25, 2010, for recording Dr. Brian
Sullivan of Abbeyville Family Health re U.S. Sponsored Mind Control and posting on my
Wordpress Blog.
20.Tobias Frog Restaurant and Bar, August 8, 2015 by Owner of Establishment, reason
was for complaining of harassment and stalking.
21. Millersville University, July 9, 2015, served notice by Millersville University Police
Chief Pete Anders, for negotiating a civil rights complaint with Assistant to the President,
Debra Hoeckler
22.Village Nightclub, July of 20015, by George..........., Owner, tried to enter several times,
with no reason and no written notice.
23.Lucky Dog Bar, August of 2015, met Abby and Keagan Pflumm outside, went inside and
was told by bartender to leave and not come back.
24.Barley Snyder, LLC Lancaster Office, receptionist Ms. Woods refused to let me
communicate with Attorney George Werner, who in 2011 entered appearance in 05-2288
for Fulton Bank in U.S. District Court.
25.Wennerstrom Property Management Company, June 2015, went to complain
regarding harassment, threats, etc., at 1252 Fremont Street and told to leave building.
26.Pennsylvania Liquor Control Board, Northwest Office Building, November 23, 2015,
Harrisburg, PA, Delivered COMPLAINT re Bars and Restaurants in Lancaster engaged in
Discrimination, Stalking, Harassment, Assaults, etc., Would not allow access to Legal
Counsel, and female who took complaint would not provide ID.
27.Southeast Medical Facilities and Brightside Church Office, February 2016, Would not
issue pain medication and filed a Private Criminal Complaint with the Lancaster County
District Attorney, no opinion as of yet.
28.U.S. Federal Facilities per the National Security Agency Interrogation of March 9, 2016
at the NSA Headquarters in Ft. Meade, Maryland. Handcuffed and Interrogated for over an
hour and finally let go and told not to continue on to Washington, D.C. And said I was no
longer permitted to visit any U.S. Federal Facilities.
Dated: March 15, 2016
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Caterbone
Family
Group
Executive
Executive
U.S.
Executive
Mind
Summary
Summary
Control
Summary
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Page
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2016
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5, 2016
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
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2016
11,
17,
15,
5, 2015
2015
2016
Saturday,
October
10,
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
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2016
11,
17,
15,
5, 2015
2015
2016
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October
10,
Advanced
Stan
CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
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2016
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17,
15,
5, 2015
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2016
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October
10,
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J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
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CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
Summary
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CATERBONE
Stan
J. Caterbone
J. Media
Medi
Caterbone
Family
Group
Grop
Group
Executive
Executive
U.S.
Press
Press
Executive
Mind
Summary
Release
Release
Summary
Control
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Family
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Family
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15,
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2016
15,
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2016
11,
17,
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2015
2016
Saturday,
October
10,
CATERBONE Family U.S. Mind Control
Page 142
103 of 453
414
Tuesday July 5, 2016
Julianne McKinney: Letter to President Clinton and His Reply
Association of ational Security Alumni

Electronic Surveillance Project
P.O. Box 13625
Silver Spring, MD 20911/3625
(301) 608/0143
[no longer in service]
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Page151
112
10 of 10
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453
TuesdayJune
July30,
5, 2016
8/1/2005 11:44 AM
TIMELINE OF EVENTS
FEB, 1987
MAY, 1987
June, 1987
Mortgage Banking
Activities Are Started
Meet With Power
Station Studios For
Digital Movie
Take Control of
Board of Directors
Beat Commonwealth
Bank on $5 Million Mtg.
Meet with Movie Producers
Develop SONY Proposal
& PSDMS (Power Station
Digital Movie System)
Purchase Airplane
$25,000 Down
FMG 2 Years Ahead of Plan
Value Approx. $5 million
Named Executive Producer
Of Digital Movie
June 23, 1987
June 25, 1987
June 29, 1987
10:30 Meet with

ISC, My Office
Fraud Allegations
Receive Patent
Research for
Digital Movie/FMG
Dave Cook/Bennet
Williams Deal, Kauffman
Tries to Steal Deal
ISC/Ferranti
Reviewing Merger
Kauffman & Company

Burglarize My Office
& Forge Stock Certificates
Meet w/Romar Aviation

To Move Plane From
Lancaster Aviation
2:00 pm Have My
Locks Changed To
My Office
Kauffman Tells Me Via

Telephone of Stock
Certificate by Mistake
4:30 Fly to Phil for

Meetings, Fly to
Stone Harbor
Lancaster Aviation
Grounds Plane
Page 152
113 of 453
414
TIMELINE OF EVENTS
July 2, 1987
July 3, 1987
July 4, 1987
Remove All Files

From My Office
At Night.
Visit With Joe

Roda, Offers No
Help, Suggests
I Get Some Rest
After Hearing My
Story.
Early In AM Pilot
Calls And Said The
Bank Repos Plane
In The Middle of The
Night With All Files
On Board/23 days before
1st Payment/Loose $25,000
Kauffman tells client

John Green that Stan
Is Having Mental
Problems.
Load Files On Plane

For Stone Harbor.
Drive to Stone Harbor
Romar Aviation Is To
Fly Files To Stone Harbor
The Next Mourning.
Call Joe Roda, He Told

Me To Quit Fabricating
Things.
Hire Pilot To Fly To Lanc.
To Get Files From Plane.
July 5-10, 1987
July 6th , 1987
July 14, 1987
Meet With Attorneys
Commonwealth Bank
Sends notice of Repo
4 days after it was taken.
PSG Revokes Securities

Licenses, No Reason Given.
Try To Salvage Dave

Cook Deal/Heard I
Am Having Problems.
Meet With Tony Bongiovi

in Wildwood re: Digital
Movie, rumors of insanity
have reached everyone.
Dr. Umiker removes

me as Trustee Of Estate.
2
Page 153
114 of 453
414
TIMELINE OF EVENTS
July 16, 1987
July 14th
Kauffman Sends
Letter To All Clients
Notifying Them That
I Am No Longer With
FMG, Ltd., And I May
Not Handle Investments
At All.
Contact The Following

Authorities For Help:
Fed SEC; NASD, Atlanta
Bennett Ripole; SEC John
Nocella; Cong. Robert
Walker, Sen Gib Armstrong
Manheim Twp. Police, Etc.,
Fred Martin (FBI Harisburg.
Travel To Sulfolk Library To
Research Lender Liability,
In Boston, MA.
Pay Atty Lew Schweller

Of NJ $500 Retainer Fee.
1987
July 22, 1987
July 24th, 1987
Dave Cook Decides Not

To Do The Bennett Williams
Deal And States That I Have
Been Advised By My
Attorney Not To Associate
With You.
Mike Hartlett Sends Letter

To All FMG Creditors Stating
That I Never Had Authority To
Make Corporate CommitmentsTake
On Behalf Of FMG Or Make Any
Financial Decisions On
Behalf Of FMG.
Page 154
115 of 453
414
July 21st, 1987

Travel To Santa Barbara
CA To Law Firm Of Cappelo
& Foley, Who Specializes
In Lender Liability Fraud
With Banks. See Invoice.
Visit With Gamillion Studios
Of Hollywood CA To Discuss
Restructuring The Debt Of
The Studio. Meet With
Austin Properties For MTG
Banking. Allegations Of
Insanity Had Reached My
Hollywood CA Contacts.
August 7, 1987
Contact Dr. Marshall
Levin Of Northfield, NJ
For Psychiatric Evaluation.
MMPI Test For $250.00
In An Attempt To Subdue The
Allegations Of Insanity.
TIMELINE OF EVENTS
August 11th , 1987
August 14th, 1987
August 28th, 1987
Family Members Abduct

Me & I Am Taken To The
Stone Harbor Police Station
And Then To The Burdette
Tomlin Hospital Where A Phone
Phone Call Was Made Earlier
That Day Saying Stan Had
A Gun And Was Going To
The Beach To Kill Himself.
I Was Released After I Would
Sign A Suicide Letter.
Family Members Again

Invade My House In Stone
Harbor Trying To Get A
Confession Of Wrongdoing.
I Travel To Avalon To Try To
Get A Restraining Order, But
I Am Arrested On The Way To
The Police Station For Speeding.
The Avalon Police Impounded
My Car, And Kept Me In Prison
For 4 Hours.
In A Desperate Plea For Help,

After All Authorities Ignored Me,
I contact Dianne Sawyer, Of
CBS News 60 Minutes.
See Receipt.
Receive My Credit Report

From the Lancaster Credit
Bureau Reporting That Up Until
July 30, My Credit Report was
Flawless, With All Accounts
Paid Within 30 Days.
Receive Letter From FMG Board

Threatening To File Criminal
Charges And Refusing To Discuss
Any Talks Regarding My Past
Affiliation.
4
Page 155
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414
TIMELINE OF EVENTS
September 1st, 1987
September 3, 1987
September 3, 1987
I Call A Meeting With

Bob Long and Alan Loss
of FMG, Ltd., in Lancaster.
I Board At The Cape May

Airport at about 1:30 pm.
To Lancaster.
Romar Aviation Owes Me

A Flight, So I Schedule A
Charter Flight For September
3rd, From Cape May To
Lancaster
FMG, Ltd., Calls The Manheim

Township Police And Reports
That I Had Made A Bomb Threat
Two Days Earlier, On September
1st. Manheim Township Police
Issue A Warrant For My Arrest For
Terroristic Threats, Just Before I
Am Scheduled To Land In Lancaster.
I End Up In Jail With

The Following Charges:
Burglary, Theft,
Unlawful Use Of A
Computer, Terroristic
Threats, Robbery,
Criminal Mischief, And
Unlawful Restraint.
I Borrow A Friends Car To Go To

Play Basketball. I See One Of My
Secretaries And She Is Crying
Hysterical. Insinuating That I Had
Committed A Horrendous Crime.
I Politely Ask For The Keys To FMG
The Conestoga Police

Let Me Ride In The
Front Seat, The Manheim
Twp. Police Physically
And Mentally Abused
Me.
Lancaster Nespapers
Prints Ex-Worker
Charged In Burglary
At Firm and Conestoga
Man Linked To Theft
Later That Night I Went Into My Office

And Removed My Lost Files.
Page 156
117 of 453
414
TIMELINE OF EVENTS
Sept 4th To Sept 9th 1987
Sept. 9th To Sept. 15th 1987
Sept. 15th, 1987
Committed To Lancaster
County Prison. Placed In
Psychiatric Cell Unit.
Plead For Someone To
Post Bail. After Posting
Bail, I Am Coerced Into
The St. Joseph Hospital
Psychiatric Ward, As The
Only Way I Can Get Out Of
Jail, By Robert Byer, Atty.
Involuntarily Committed To The

Psychiatric Unit of The St. Joseph
Hospital.
Attorney Robert Byer

Admits That I Am Not
Legally Committed To
The Psychiatric Ward.
September 21st, 1987
September 28th, 1987
September 29th, 1987
Lancaster Newspapers
Headlines Reports The
ISC/Ferrantti Merger,
Said To Be Worth A
Billion Dollars.
St. Joseph Hospital

Demands Payment Of
$3,064.66 For The Seven
Days of Hospitalization
In The Psychiatric Unit.
Investigator Howard
Eisler Of The PA
Securities Commission
Conducts A Five Hour
Interview In My Home
With Attorney Robert
Beyer, And Client
Bill Johnson. I Discuss
ISC Allegations In
Detail.
I Immediately Order
For My Discharge And
Walk Out Of The
Hospital And Go Home.
6
Page 157
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414
TIMELINE OF EVENTS
October 2, 1987
October 5, 1987
October 7, 1987
District Justice Murray

Horton Presides Over
Preliminary Hearing For
All Charges. Transcript
Provides Evidence of
Perjury By Almost All
Witnesses Testimony.
Sir Speedy Printing

duplicates 1103
Images Billed To The
Law Firm Of Arnold,
Beyer & Homsher
Farmers First Bank

And Hamilton Bank
Refuse To Cash A
Check From FSC
Agency, In Atlanta
At The Park City
Branches.
Several Creditors File

Judgments For Non
Payment.
Parent Federal Bank
(ISC Owned) Proceeds
With Foreclosure Against
My House.
Unemployment Compensation
Review Board Denies Benefits
Due To Criminal Wrongdoing.
Page 158
119 of 453
414
TIMELINE OF EVENTS
October 10, 1987
November 9, 1987
November 20, 1987
Meeting With Intercon

Special Services, Which
Specializes In White
Collar Crime. The
Meeting Was In New
York
The Pennsylvania
Unemployment Compensation
Review Board Denies Me
Benefits Due To Willful
Misconduct When
To My Own Property
Attorney Robert Byer

Corresponds Regarding
The Preparation Of
My Defense Against
All Charges Pending
November 25, 1987
November 30, 1987
November 31, 1987
Pennsylvania Securities
Commission Sends Notice
That Complaint Must Be
Submitted In Writing In
Order To Be Considered.
Attorney Lew Schweller

Of New Jersey, Demands
Payment of $1460 For
Legal Services In The
Summer.
Page 159
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414
Law Firm Of Capello

And Fol.ey, Of Santa
Barbara, CA Returns
3 Binders Of Documents
Which I Delivered In
July.
I Submit 9,079
Documents For
Processing Into
Diazode Microfiche
At Good Sheppard
Industries, Reading.
8
TIMELINE OF EVENTS
December 1, 1987
December 19, 1987
January 8, 1988
I Personally Deliver
Evidence To Senator
Gib Armstrong and PA
Securities Commission
Investigator Howard
Eisler In Harrisburg.
I File Complaint No.

08662 With The U.S.
Postal Inspector Which
Refereed To The Changing
Of My Address By FMG
Executives.
The Pennsylvania
Unemployment
Compensation Review
Board Again Denies
Benefits.
January 14, 1988
January 15, 1988
January 26, 1988
Purchase Mobile Home

To Travel To California
To Meet With Attorney
Sandra Gray, In San
Diego.
Secretar-Al Transcribes
10 Microcassette Tapes
To Electronic Word Format.
The Pennsylvania
Housing & Financing
Agency Denies
Benefits Under The
Homeowners
Emergency Assistance
Program.
Page 160
121 of 453
414
TIMELINE OF EVENTS
February 4, 1988
March 14, 1988
March 21, 1988
Lancaster Aviation Files

A Civil Complaint For
$3,411 Allegedly From
Repair Work On My
Plane
Parent Federal
Bank Files Formal
Foreclosure Notice
For My Home. In
Conestoga
The Lancaster
County District
Attorneys Office
Formally Drops
All Criminal Charges
After $2,000 In
Restitution Is Paid.
October 25, 1988
October 30, 1990
October 31, 1990
Mr. Robert Kauffman

Purchases 40,000
Shares Of FMG, Ltd.,.
For $60,000
Congressman Robert
Walker Reports The
Status Of My Complaint
Involving A $2.5 Million
Contract For The Defense
Mapping Agency (DMA) To
Digitize And Publish On
CD-ROM Medium.
Department Of
Defense Agrees
To Reopening The
Bidding, Which
Included Me, Sony,
Phillips DuPont, and
Disc Manufacturing
Inc.,
10
Page 161
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414
TIMELINE OF EVENTS
October 23, 1990
November 18, 1990
December 12, 1990
The Assistant Secretary

Of Defense Dave Gribben
And Brigadier General
Kelly, Intervene In Contract
Dispute.
The National Institute

Of Standards And
Technology, NIST, Approves
An Article Written By Me
And Computer Scientist
John Garofolo Escaping The
Unix Tar Pit Printed In DISC
Magazine.
Travel To Captiva
Island To Program
And Produce The
Information For The
AMG Legal System
CD-ROM, Containing
All Of My Evidence.
February, 1991
April 16, 1991
May 16, 1991
Mr. Jay Curtis Solicits Me

Me To A Joint Venture For
The Department of
Defense.
The Audio CD Containing

The Evidence Is
Mastered and Replicated
At American Helix.
At the Tech Lab

At Commodore
Computer, In West
Chester, PA, I
PreMaster and Master
One-Off CD-ROM of
AMG Legal Systems.
Mr. Curtis Became

Increasingly Interested
In The CD-ROM, And
Began To Interrogate
Me As To What I Was
Going To Do.
Page 162
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414
11
TIMELINE OF EVENTS
May 23, 1991
May 24, 1991
May 28th, 1991
Mr. Jay Curtis Calls

And Interrogates Me
Extensively About The
CIA Activities With ISC
And Tells Me That The
Authorities Have My
Information.
I Travel To Stone
Harbor, New Jersey
And In A Newspaper, I
Learn Of The CIA And
ISC Story.
The Stone Harbor

Police Pull Me Over
And Arrest Me For
Drinking And Driving,
However, I kept Passing
The Breathalyzer Tests.
I Ended Up In Prison,
Again, For Nothing.
In Fear For My Life, I

Pack My Bags.
That Night On ABC
News Nightline, Ted
Koppel Featured The
Story About The CIA
And ISC.
Allegations Of Insanity
Have Already Begun.
I Plant Several CD-ROMs of

The AMG Legal Systems In
Various Strategic Places.
There was one attempt

on my life.
October 12, 1991
I Meet Ted Koppel At
The Dulles Airport In
Washington, D.C. And
Ask Him If He Knew Mr.
Jay Curtis, And Told Him
How I Was Interrogated Just
Hours Before The CIA and
ISC Sell Arms To Iraq.
12
Page 163
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414
TIMELINE OF EVENTS
November 12, 1997
November 23, 1997
December 2nd , 1997
I E-Mail Lancaster
Newspapers About
ISC And My Story.
I Write For A Legal

Opinion From Attorney
Christina Rainville, And
Attorney Mat Samly, Of
Xekallis, Reese, & Pugh.
Mr. Samley promises to
have a 6 page opinion
Immediately after the holidays.
I receive via certified

mail return receipt
materials & letter from
Ms. Rainville stating her
Firm will not take any
new clients from
Lancaster County.
December 22, 1997

I send letter to Dr. Shulz
describing my need to
resolve all issues due to
my inability to bear the
fruits of my labor due to
The mitigating
circumstances.
December 29th, 1997

I Send Letter And Evidence
Ted Kopple of ABC News
Nightline.
December 31st, 1997

I Deliver Evidence To
Chambers Of U.S.
District Judge Stewart
Dalzall in Philadelphia
Courthouse.
I also begin to make

a diary of the mental duress
at Pflumm Contractors, Inc.,
I receive a threat from Jim

Christian via telephone who
said if you raise these issues
again, your life will be much
worst off than it is now, let it be.
He continued to try to threaten me
from raising these issues.
Page 164
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414
13
TIMELINE OF EVENTS
January 13, 1998

In a desperate plead
for intervention with
the mental duress at
Pflumm Cont., and the
invasion of my privacy
all trying to stop my
pursuit of justice I call
Fr. Lavelle at the Office
Of the Bishop for help
and advise. A meeting
is set for the next morning
at 9:00 am.
Coincidentally Dr. Al Shulz
calls me to reschedule my
Quarterly checkup soon after
following my meeting with
Fr. Lavelle, in Harrisburg.
Pam Pflumm arrives at my
house in the evening trying to
confuse me and annoy me
before my meetings.
January 14, 1998

I meet with Fr. Lavelle
who mysteriously would
on suggest that I continue
to talk to my therapist
and would not call Dave
Pflumm to alleviate the
incidents of mental duress
unless Al Shulz would tell
him to do so.
Pam Pflumm call me on
My car phone as soon as
I leave the Bishops Office
crying hysterically that
she needs to see me and
wants to go to Dr. Shulzs
office with me. She demands
To go with me to my appointment
but I make her wait in the car.
I sense wrongdoing, and tape
record my session with Dr.
Shulz, who
January 14th Cont.

before I speak one
word tells me Stan
you are sick, you are
not well, you need to
take different medicine
you need help. The last
time that I saw Dr. Shulz
in September, I was fine.
Someone apparently
called Dr. Shulz prior to
my arrival. See Tape.
January 15th, 1998
I send a certified letter
to Dr. Al Shulz notifying
him that I am leaving his
practice.
Everyone makes an
ordeal of my session
with Dr. Shulz as if
I was some lunatic, it
is a violation of my right
privacy.
14
Page 165
126 of 453
414
TIMELINE OF EVENTS
January 16, 1998

Due to the inflammation
of further mental duress
I take my 1 st sick day and
take my 2 week vacation
in an effort for a cooling-off
period at Pflumm
Contractors, Inc., in order
to protect my sanity.
February 5, 1998
In a desperate plead to
resolve the issues I file
a formal complaint to the
PA Chapter of the American
Civil Liberties Union (ACLU)
in Philadelphia, PA.
February 171998
ACLU responds that
they do not have the
available resources
to look into my case.
February 19th, 1998

At 11:30 pm Pam Pflumm
arrives at my home, and
after I request her to leave
Several occasions, she tries
to convince me that my mother
is dying - she said Your
mother Is dying, and you
dont even care.
February 20th, 1998

Immediately upon
entering my office
I confront Dave Pflumm
and ask him if my mother
is dying, He had no
response.
See Diary of Mental

Duress filed with the PA
Unemployment Comp. Office.
February 17, 1998

Immediately prior to the
telephone call from the ACLU
I had mailed a personal letter
to Bishop Dittilo of the Dioc.
of Harrisburg pleading for
help and intervention
regarding all matters.
Page 166
127 of 453
414
15
Frank Kent of the ACLU

had called me at my
Office to inform me
that they did not have
the resources to
consider my case.
which I had politely
questioned.
TIMELINE OF EVENTS
February 20th, 1998 (Cont)

Extremely distraught and
upset I went home at lunch
and called Mr. Kenneth
Burnette, Stepfather of
Pam Pflumm, and Chaplain at
Lancaster General Hospital
and asked him to talk to Pam
Pflumm.
That evening I had dropped
a copy of the letter to Bishop
Dittilo into his mailbox.
February 28, 1998

Coincidentally, more than
2 months late, I receive
a legal opinion from
Mr. Matt Samley of Xekallis,
Reese, and Pugh. Which
Was totally without any
legal merit.
February 22, 1998

Mr. Keneth Burnette comes
to visit me at my home to discuss
my note. He said that Pam
never said my mother was dying
but rather that she was sick. He
states that my situation is over
his head . I told him that work
has been like Hell for the past
Several months and asked him
to help. He repeated to me, so
work is like Hell?. He said he
would check on me. And I
Distinctly told him that I will call
him if I wanted to see him.
March 17, 1998

Mr. Ken Burnette continued to
come to my home on at least 5
more occasions despite my polite
way of saying, dont call me Ill call
you.
February 25, 1998

I file a claim for
Unemployment
Compensation on the
grounds of quitting due
to mental duress caused
Mr. David Pflumm and
several key employees,
that had begun when
be began to pursue
my claim for justice for
the issues of the past
ten years.
I am again denied
Unemployment
Compensation for the
3rd time in my life.
16
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414
TIMELINE OF EVENTS
March 24, 1998
April 13, 1998
April 21, 1998
I file an appeal with the

Lancaster Job Center for
Unemployment Comp.
Benefits.
A hearing is held at
the Lancaster Job Center
for UC Benefits with D.D.
Hukill presiding as Referee
and myself and Dave Pflumm
in attendance. My testimony
is my diary of mental duress.
We ate lunch afterwards at
P.J. Mathews in Place Marie
My appeal for UC
Benefits is again
denied for illegitimate
reasons including
discrimination for
going to Fr. Lavelle
to intervene into the
problems at Pflumm
Contractors.
I reject the offer

from her due to
questionable motives.
April 27, 1998

I file another appeal
to the UC Board of Review
for my UC benefits.
Page 168
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414
17
AFFIDAVIT OF 1998 TO HONORABLE JUDGE STEWART DALZELL
I, Stanley J. Caterbone being duly sworn according to law, make the following affidavit concerning the years during which I was
maliciously and purposefully mentally abused, subjected to a massive array of prosecutorial misconduct, while enduring an exhaustive fight
for the sovereignty of my constitutional rights, shareholder rights, civil liberties, and right of due access to the law. I will detail a deliberate
attempt on my life, in 1991, exhibiting the dire consequences of this complaint. These allegations are substantiated through a
preponderance of evidence including but not limited to over 10,000 documents, over 50 hours of recorded conversations, transcripts, and
archived on several digital mediums. A Findings of Facts is attached herewith providing merits and the facts pertaining to this affidavit.
These issues and incidents identified herein have attempted to conceal my disclosures of International Signal & Control, Plc. However, the
merits of the violations contained in this affidavit will be proven incidental to the existence of any conspiracy.
The plaintiff protests the courts for all remedial actions mandated by law. Financial considerations would exceed $1 million. These violations
began on June 23, 1987 while I was a resident and business owner in Lancaster County, Pennsylvania, and have continued to the present.
These issues are a direct consequence of my public disclosure of fraud within International Signal & Control, Plc., of County of Lancaster,
Pennsylvania, which were in compliance with federal and state statutes governing my shareholder rights granted in 1983, when I purchased
my interests in International Signal & Control., Plc.. I will also prove intentional undo influence against family and friends towards
compromising the credibility of myself, with malicious and selfserving accusations of insanity. I conclude that the courts must provide me
with fair access to the law, and most certainly, the process must void any technical deficiencies found in this filing as being material to the
conclusions. Such arrogance by the Courts would only challenge the judicial integrity of our Constitution .
1. The activities contained herein may raise the argument of fair disclosure regarding the
scope of law pertaining to issues and activities
compromising the National Security of the United States. The Plaintiff will successfully argue that due to the criminal record of International
Signal & Control, including the illegal transfer of arms and technologies to an end user Iraq, the laws of disclosure must be forfeited by
virtue that said activities posed a direct compromise to the National Security of the United States.; the plaintiff will argue that his public
allegations of misconduct within the operations of International Signal & Control, Plc., as early as June of 1987 ;demonstrated actions were
proven to protect the National Security of the United States.. The activities of International Signal & Control, Pls., placed American troops in
harms way. The plaintiffs actions should have taken the American troops out of harms way causing the activities of the International Signal
& Control, Plc., to cease and desist.
18
Page 169
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414
All activities contained herein have greatly compromised the National Security of the United States, and the laws of jurist prudence must
apply towards the Plaintiffs intent and motive of protecting the rights of his fellow citizens. Had the plaintiff been protected under the law,
and subsequently had the law enforcement community of the Commonwealth of Pennsylvania, and the County of Lancaster administer
justice, United States troops may have been taken out of harms way, as a direct result of ceasing the operations of International Signal &
Control, Plc., in as early as 1987.
2. The plaintiff will successfully prove that the following activities and the prosecutorial misconduct were directed at intimidating the plaintiff
from continuing his public disclosures regarding illegal activities within International Signal & Control, Plc,. On June 23, 1998, International
Signal & Control, Plc was negotiating for the $1.14 billion merger with Ferranti International, of England. Such disclosures threatened the
integrity of International Signal & Controls organization, and Mr. James Guerin himself, consequently resulting in adverse financial
considerations to all parties if such disclosures provided any reason to question the integrity of the transaction, which later became the
central criminal activity in the in The United States District Court For The Eastern District
3. The plaintiff will prove that undo influence was also responsible for the adverse
Of Pennsylvania.
consequences and fabricated demise of his business
enterprises and personal holdings. The dire consequences of the plaintiffs failed business dealings will demonstrate and substantiate
financial incentive and motive. Defendants responsible for administering undo influence and interference in the plaintiffs business and
commercial enterprises had financial interests. The Commonwealth of Pennsylvania as a taxing authority, Lancaster County had a great
investment whos demise would facilitate grave consequences to its economic development. . Commonwealth National Bank (Mellon) would
have less competition in the mortgage banking business and other financial services, violating the
lender liability laws . The Steinman Enterprises, Inc., would loose a pioneer in the information technologies industries, and would protect the
public domain from truthful disclosure. The plaintiff will also provide significant evidence of said perpetrators violating common laws
governing intellectual property rights.
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4. Given the plaintiffs continued and obstructed right to due process of the law, beginning in June of 1987 and continuing to the present,
the plaintiff must be given fair access to the law with the opportunity for any and all remedial actions required under the federal and state
statutes. The plaintiff will successfully argue his rights to the courts to rightfully claim civil actions with regards to the totality of these
activities, so described in the following Findings of Facts, regardless of any statute of limitations. Given the plaintiffs genuine efforts for
due process has been inherently and maliciously obstructed, the courts must provide the opportunity for any and all remedial actions
deserving to the plaintiff.
5. Under current laws, the plaintiffs intellectual capacity has been exploited as means of discrediting the plaintiffs disclosures and
obstructing the plaintiffs right to due process of the law. The plaintiff has always had the proper rights under federal and state laws to enter
into contract. The logic and reason towards the plaintiffs activities and actions are a matter of record, demonstrated in the Findings of
Facts, contained herein.. The plaintiff will argue and successfully prove that the inherent emotional consequences
to all of the activities
contained herein have resulted in Post Traumatic Stress Syndrome.
The evidence of the stress subjected to the plaintiff, will prove to be the direct result of the activities contained herein, rather than the
exhibited behavior of any mental deficiency the plaintiff may or may not have. The courts must provide for the proper interpretations of all
laws, irrespective of the plaintiffs alleged intellectual capacity. The plaintiff successfully argue that his mental capacity is of very little
legal consequence, if any; other than in its malicious representations used to diminish the credibility of the plaintiff.
6. The plaintiff will demonstrate that the following incidents of illegal prosecutions were purposefully directed at intimidating the plaintiff
from further public disclosure into the activities of International Signal & Control, Plc., consequently obstructing the plaintiffs access to due
process of the law. Due to the fact that these activities to which the plaintiffs perpetrators were protecting were illegal activities, the RICO
statutes would apply. To this day, the plaintiff has never been convicted of any crime with the exception of 2 speeding tickets. The following
report identifies 34 instances of prosecutorial misconduct during the prosecutions and activities beginning on June 23, 1987 and continuing
to today.
20
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7)
Given the preponderance of evidence associated with this affidavit, the courts must conclude that In The United
States District Court For The Eastern District of Pennsylvania, Federal Judge Stuart Dalzalls findings of April 14, 1997,
in the Lisa Lambert case identifying acts of prosecutorial Misconduct, now, by virtue of this affidavit, now discloses
evidence of a bona fide pattern of prosecutorial misconduct, in the Commonwealth of Pennsylvania and in the County of
Lancaster. Criminal law must now determine if these disclosures would warrant investigations of a possible criminal
enterprise. This affidavit is of material interest to the Lambert case, for the very fact that this affidavit compromises the
very same integrity of the court, which would tip the scales of justice even further from the peoples deserving rights..
In the truthfulness of this affidavit, The Commonwealth must concede Lisa Michelle Lambert to balance the scales of
justice, which no other act could accomplish. Commonwealth must yield the criminal culpability of Lisa Michelle
Lambert to the superior matter of restoring the integrity to the courts; by its own admission of wrongdoing, assuring
the peoples of its commitment to administer equalities of justice, not inequalities of justice. Balancing the scales of
justice. Anything less, would take the full scope of jurisdiction out of the boundaries of our laws, negating our
democracy and impugning the Constitution of the United States. The plaintiff must be restored to whole.
Authored and Produced on September 17, 2015 by,
Stan J. Caterbone
MOVANT
1250 Fremont Street
Lancaster, PA 17603
scaterbone@live.com
717-669-2163
717-459-7588 Fax
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Supporting Evidence of Samuel P. Caterbone, Jr., (Father) Involvement in U.S. Sponsored Mind Control

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June 27, 2007

Mike, Steve, Phil:
Below is the letter I wrote to you regarding Dad and his research.
arch. Last
Las night I
found declassified documents from the Central Intelligence Agency (CIA) from a document
dump that was declassified in the year 2002. These documents support what I have told
you on June 10, 2007. These documents shed light into the CIAs research and activities
in the study of UFOs. I also found Dads diploma from Lancaster Catholic High School
and he graduated with a degree in Scientific Studies.
dies. Now remember what Dad wrote to
your own conclusions.
yo
me in 1999. You
ou all draw
dr
He said:
November 1, 1999
Stan,
The two statements I mailed some time ago titled "WHY NEW YORK" no doubt
gave you cause to wonder what is this all about. What could be driving this Father of Six
Boys who over the years could not be associated with being apart of this Family structure.
Being aware of all the psychological malfunction8 I am vulnerable too, what can I say. So
I write Not to influence only to state in a simple way what I ' m about. I have good
positive direction and am on solid ground in my reasoning to be the way I am. For many
years this situation has forced me to live alone and stay alone so I could keep up with it's
demands. So I am fortunate being in New York where I can be the way I am in such an
environment as New York. All this said, "HOW ALONE AM I"!
You have heard it often! "IS ANY BODY OUT THERE"! This is my answer for that is
the company I keep. Thru direct Audio Communication that sees everything I see, hears
everything I hear and knows everything I know and the communication is according. For
all it's worth I will state there is no psychological malfunction involved in this Audio
Communication. If this be the case, "HOW ALONE AM I"!
Getting any kind of recognition is something I give up on. From 1991 to 1997 I
had
high profile list of many names that I addressed monthly. But without any
ad a active hi
evidence Truth is Irrelevant. So be it! I am convinced I live a story that is beyond
everyone's comprehension. But I do have a good lease and sufficient income
e for the
th
lifestyle of one of my age in my stay here in New York. In ending a brief summation.
My starting date for this situation was in 1957. They started this situation in 1943
while I was in the Navy. A Research Situation with no intention of being identified in this
World. If this World knew what I know it would be shocked.
Dad
Letter to Mike Caterbone of June 10, 2007

Mike,
Enclosed is a document that was from Dads belongings.
gs. IIn 1991 he had a
monthly mailing list that he mailed people from the Scientific and Academic communities
his experiences and his research regarding extraterrestrial life. He
H continued this
monthly mailing until 1997.
97. In
I it he describes his experience and his frustration with
getting help and people to believe him.
Now, if you read the fist seven (7) pages on Telepathic Communications, you can
see that someone was remote channeling or telepathically communicating with Dad, and
trying to pretend that they were from outer space. I have reached this conclusion after I
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became telepathic, and today, after looking for my college transcripts, came across these
writings, which only confirm and validate my conclusion.
I believe the U.S. Government or Lancaster County had a problem with something
Dad was researching or something he was doing in business and began a campaign to
mentally abuse him. You
Y
study these writings and transpose mental telepathy for his
audio
dio and
a
video
deo transmissions,
t
ons, which
which is c
clearly
arly described
d
ibed in tthe Telepathic
Communication Between Two People.
http://www.mindreality.com/telepathic-communication-between-two-people
You let me know what you think and pass this along to Phil and Steve.
eve.
counting on you to make sure they get a full copy of this document.
I am
Stan.

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Advanced Media
Group U.S. Mind Control
CATERBONE
Family
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of96
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Tuesday July
5, 2016
Telepathic Communication Between Two People

Posted by Enoch Tan - Share this article with friends!
How do two people become so connected that they are able to communicate
without being in contact physically, speak to each other through telepathy
and even feel the same pains?
The ability to send to and receive from each other thoughts and feelings
comes from a spiritual connection between the two of you. When two people
are spiritually close to each other, they areoften able to sense what the other
is feeling or thinking. Telepathic communication consists of two directions,
sending and receiving.
It depends on intention. Whether you have the intent to sense what the
other person is thinking andfeeling, or for the other person to pick up certain
thoughts and feelings you are sending. It will be harder for others to sense
your thoughts if you want to hide yourself from them. You psychically
put up a shield to prevent them from seeing your intentions. The same is
also true when others do that.
It takes someone of a stronger mind and greater clarity of thinking to

penetrate the psychic shields of others to see what they are thinking.
When two people are spiritually close, they trust each other and they have
mutual empathy.
Empathy is one of the key ingredients of telepathy.

Telepathy which is of the psychic level of the mind tends to operate beyond
pure words and linguistics. It takes place in the form of feelings, images and
desires. You may be able to receive telepathic communication from another
person in the form of pure words. But usually it comes through a feeling,
image or desire.

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Depending on whether the telepathic message is verbal or nonverbal as well

as your dominant mental modality, you might receive the message by
instantly knowing it (Paracognition), hearing it from an inner voice in your
mind (clairaudience), visualize it (clairvoyance) or feeling it (clairsentience).
In non-local telepathy which is psychic communication out of sight, you
might sense an emotion that another person is feeling at that time, or you
might think of an image that is related to what that person is experiencing,
or you could sense what that person is intending to do. All these happens
without you being able to read the body language of the person.
That psychic message that you get doesnt seem to be just a thought that
you conjure up in your mind out of pure imagination but it comes with the
feeling of clarity and inner certainty which is exactly what intuition is made
up of.
All things at the psychic level operates through the power of belief. In order
to send or receive telepathy, you first need to have the belief that you can
send and receive telepathy, and that it is going to happen. The methods of
telepathy are induction, visualization and will. emotions, images and desires
that you receive that prevents you from seeing what really is.
Being authentic is one of the keys to sending and receiving clear telepathic
messages. The virtue of honesty and truth is a spiritual law of reality. When
you have a good telepathic connection with someone, you can read each
others thoughts easily. So sometimes you do not want the other to know
something, such as the correct answer to a question. You can use techniques
of counter-telepathy.
You can put up a psychic shield by visualizing it and willing that the person
cant read your mind. Or if you want to, you could mislead the person by
focusing on an opposite thought or the wrong answer instead. He/she would

Page 276
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Page 23 of 96

09/20/2009
usually pick up the misleading thought and be mislead. This misleading

thought effect also explains why it is so important to watch our thoughts.
Sometimes we think certain negative thoughts towards a person when we
are momentarily angry or upset. The person may pick these thoughts up and
think that is what we really think about him/her when it isnt our true
thoughts.
It is alright to think those thoughts for awhile but we must not forget to
revert to sending our truer positive thoughts of peace, harmony and well
being in between or afterwards, and to send them with equal or greater
intensity. Especially to someone we truly love.
Finally, it is also about love. When you really love someone, Universal Mind
or God will tell you things about that person, because God is love and love
connects you to that person spiritually.
That person can also sense certain emotions, images and desires from you
through the universal mind. Telepathic connection works best when we dont
try to force it. When we know it works, it works.
But when we think it might work, it doesnt work. It is driven more by our
subconscious beliefs than by conscious effort. The more we try to force it, the
worse we do.
The things you tend to send telepathically are the things that you focus on
most often. If you focus more often on positive things, you will send positive
emotions, images and desires. If you focus more often on negative things,
you will send negative emotions, images and desires.
First induce the emotion, image or desire that you are sending within
yourself first. Allow yourself to be experiencing it at that moment. Secondly,
visualize your emotion, image or desire traveling to that person and he/she

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Page 24 of 96

09/20/2009
picking it up and experiencing it too. Thirdly, will it to happen and be certain

that it has happened the way you intend it to be. Take note that telepathy
never fails. The outcome always follows the laws that influence it which
are the beliefs and attitudes of both parties and the spiritual connection
between them. What we call failure is merely feedback about what we are
doing.
When a message does not seem to get through or it seems distorted, it is

simply because of opposing intentions, beliefs, lack of mutual trust. It could
even be your own interpretation of the Secrets of Mind and Reality MindReality.com
Learn Secrets Most People will Never Know about the Mind and Reality!
Random Articles
Neuroscience - Science of Physical Aspect of Mind
Collective Consciousness defines Rules of Reality
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Speed Reading the Natural way
Role of God, Man and Devil
IQ measures only three out of seven types of Intelligence
True Reality is Spirit and True Identity is Light
Relationship between Masculine and Feminine

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09/20/2009
Secrets of Mind and Reality - MindReality.com

Best Website In The World
Learn Secrets
Mind Power
Archive
Comments
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Posted by Enoch Tan - Share this article with friends!
How do two people become so connected that they are able to communicate without being in
contact physically, speak to each other through telepathy and even feel the same pains?
The ability to send to and receive from each other thoughts and feelings comes from a spiritual
connection between the two of you. When two people are spiritually close to each other, they are
often able to sense what the other is feeling or thinking.
Telepathic communication consists of two directions, sending and receiving.
It depends on intention. Whether you have the intent to sense what the other person is thinking and
feeling, or for the other person to pick up certain thoughts and feelings you are sending. It will be
harder for others to sense your thoughts if you want to hide yourself from them. You psychically
put up a shield to prevent them from seeing your intentions. The same is also true when others do
that.
Mind Blowing Secrets!

Receive Mind Reality - The Universe Is Mental
and the Secret of Everything and Spiritual
Mysteries Revealed and more Ebooks as my
Gifts to You! 100% Free
Mind Reality Secrets!
It takes someone of a stronger mind and greater clarity of thinking to penetrate the psychic shields
of others to see what they are thinking.
When two people are spiritually close, they trust each other and they have mutual empathy.
Empathy is one of the key ingredients of telepathy.
Telepathy which is of the psychic level of the mind tends to operate beyond pure words and
linguistics. It takes place in the form of feelings, images and desires. You may be able to receive
telepathic communication from another person in the form of pure words. But usually it comes
through a feeling, image or desire.
Depending on whether the telepathic message is verbal or nonverbal as well as your dominant
mental modality, you might receive the message by instantly knowing it (Paracognition), hearing
it from an inner voice in your mind (clairaudience), visualize it (clairvoyance) or feeling it
(clairsentience).
In non-local telepathy which is psychic communication out of sight, you might sense an emotion
that another person is feeling at that time, or you might think of an image that is related to what that
person is experiencing, or you could sense what that person is intending to do. All these happens
without you being able to read the body language of the person.
First Name:
Last Name:
Your Email:
Yes! I Want The Secrets Now!
That psychic message that you get doesnt seem to be just a thought that you conjure up in your
mind out of pure imagination but it comes with the feeling of clarity and inner certainty which is
exactly what intuition is made up of.
All things at the psychic level operates through the power of belief. In order to send or receive
telepathy, you first need to have the belief that you can send and receive telepathy, and that it is
going to happen.
The methods of telepathy are induction, visualization and will.
First induce the emotion, image or desire that you are sending within yourself first. Allow yourself to
be experiencing it at that moment.
Secondly, visualize your emotion, image or desire traveling to that person and he/she picking it up
and experiencing it too.
Thirdly, will it to happen and be certain that it has happened the way you intend it to be.
Take note that telepathy never fails. The outcome always follows the laws that influence it which
are the beliefs and attitudes of both parties and the spiritual connection between them. What we call
failure is merely feedback about what we are doing.
When a message does not seem to get through or it seems distorted, it is simply because of
opposing intentions, beliefs, lack of mutual trust. It could even be your own interpretation of the

1 of 2
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Page 26 of 96
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6/6/2007 7:00 PM
09/20/2009
emotions, images and desires that you receive that prevents you from seeing what really is.
Being authentic is one of the keys to sending and receiving clear telepathic messages. The virtue of
honesty and truth is a spiritual law of reality.
When you have a good telepathic connection with someone, you can read each others thoughts
easily. So sometimes you do not want the other to know something, such as the correct answer to a
question. You can use techniques of counter-telepathy.
You can put up a psychic shield by visualizing it and willing that the person cant read your mind. Or
if you want to, you could mislead the person by focusing on an opposite thought or the wrong
answer instead. He/she would usually pick up the misleading thought and be mislead.
This misleading thought effect also explains why it is so important to watch our thoughts.
Sometimes we think certain negative thoughts towards a person when we are momentarily angry or
upset. The person may pick these thoughts up and think that is what we really think about him/her
when it isnt our true thoughts.
It is alright to think those thoughts for awhile but we must not forget to revert to sending our truer
positive thoughts of peace, harmony and well being in between or afterwards, and to send them with
equal or greater intensity. Especially to someone we truly love.
Finally, it is also about love. When you really love someone, Universal Mind or God will tell you
things about that person, because God is love and love connects you to that person spiritually.
That person can also sense certain emotions, images and desires from you through the universal
mind.
Acquire what Enables you to Give your

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Telepathic connection works best when we dont try to force it. When we know it works, it works.
But when we think it might work, it doesnt work. It is driven more by our subconscious beliefs than
by conscious effort. The more we try to force it, the worse we do.
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Reality, Bless us in our work of inspiring and
empowering the world!
The things you tend to send telepathically are the things that you focus on most often. If you
focus more often on positive things, you will send positive emotions, images and desires. If you
focus more often on negative things, you will send negative emotions, images and desires.
Link to Mind Reality and tell others about this

website so that they can share in the inspiration
you received!
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Random Articles
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Collective Consciousness defines Rules of Reality
Mystery of Lucifer - Ascension into Supremacy
Simplified Work - Making your Best contribution
Fluid Reality allows Change of Past and Future
Speed Reading the Natural way
Role of God, Man and Devil
IQ measures only three out of seven types of Intelligence
True Reality is Spirit and True Identity is Light
Relationship between Masculine and Feminine
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http://gisweb1.co.lancaster.pa.us/ta/r2.asp?Link_ID=178727
Lancaster County Property Assessment Information

Search Again
Parcel Information
Account #
Location
Propery Class
Land
Use
Owner_name Owner_add_1
1434
500COMMERCIAL 525-Snak MCDONALDS C/O AGA
3907933200000 MANHEIM
-RETAI
Bars
CORP
CORP
PIKE
Owner
Add2
449
GRANITE
RUN
DRIVE
Owner Taxable
Tax Class
Add3 Acreage
2.06
ACT
2005
DESCRIPTOR
OWNE
319
Assessment
03-TAXABLE
MCDONALDS 984200
3907933
Residence Information
Total
# Fire # Fire Bsmt Bsmt Bsmt Bsmt Bsmt Main Uppr
Building Location
Total
Basement
Full Half
Location STORY_HEIGHT YEAR_BUILT
Bedrooms
Unfin
Places Places Garage LV LV Rec Rec Lv
Lv
#
#
SQFT
Area
Baths Baths
SQFT
Wood Gas Cap
Lnth Wdth Lnth Wdth Area Area
Detached Structure Information (when applicable)

Structure #
STRUCTURE
Measure 1
Measure 2
LINK_ID
042-IMPLMNT-SHED
12
30
178727
027-FENCE-WOOD-4
216
178727
056-PVNG-ASPHALT
50000
178727
Mobile Home Information (when applicable)

Mobile #
Location #
Location Name
Year Built
WIDTH
LENGTH
LINK_ID
Commercial Section (when applicable)

Building#
Location #
Location
Building Type
Grnd Floor Area
# Stories
Year Built
LINK_ID
102
1434
MANHEIM PIKE
205 FAST-FOOD-R
1545
2001
178727
101
1434
MANHEIM PKE
205 FAST-FOOD-R
4327
1983
178727
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10/14/2006 1:56 PM

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Account #
Location
Propery Class
Land Use Owner_name Owner_add_1
1466
500COMMERCIAL 540-Retail MARTIN
3905025600000 MANHEIM
-RETAI
Services DAVID S
PIKE
Owner Owner Taxable

Tax Class
Add2 Add3 Acreage
219
WESTVIEW
DR
0.48
ACT
2005
DESCRIPTOR
OWNER_A
319
Assessment
03-TAXABLE
ENTERPRISE
& AUTO
253800
STORE
3905025600
Total
Building Location
Total
Basement
Full Half
Bedrooms
Unfin
Lv
#
#
SQFT
Area
Baths Baths
SQFT
Wood Gas Cap

Structure #
STRUCTURE
Measure 1
Measure 2
LINK_ID
069-STORAGE-SHED
10
10
178718
056-PVNG-ASPHALT
8000
178718

Mobile #
Location #
Location Name
Year Built
WIDTH
LENGTH
LINK_ID

Building#
Location #
Location
Building Type
Grnd Floor Area
# Stories
Year Built
LINK_ID
201
1470
MANHEIM PKE
400 OFFICE
1560
1974
178718
101
1466
MANHEIM PKE
400 OFFICE
1462
1975
178718
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10/14/2006 1:51 PM

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Account #
Location
Propery Class
Owner
Add2
Owner Taxable
Tax Class
Add3 Acreage
185 NW
1460 1464
539-Other
SPANISH SUITE
500COMMERCIAL
COMPASS
C/O KIN
Vehicle
3905580000000 MANHEIM
0.39
-RETAI
PROPERTIES PROPERTIES RIVER
100
PIKE
Se
BLV
ACT
2005
DESCRIPTOR
OWNER
319
Assessment
03-TAXABLE
TUFFY
MUFFLERS
195600
39055800
Total
Building Location
Total
Basement
Full Half
Bedrooms
Unfin
Lv
#
#
SQFT
Area
Baths Baths
SQFT
Wood Gas Cap

Structure #
STRUCTURE
Measure 1
056-PVNG-ASPHALT
5700
Measure 2
LINK_ID
178719

Mobile #
Location #
Location Name
Year Built
WIDTH
LENGTH
LINK_ID

Building#
Location #
Location
Building Type
Grnd Floor Area
# Stories
Year Built
LINK_ID
101
1460
MANHEIM PKE
350 COM-GRGE-SV
4000
1975
178719
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Location Propery Class Land Use Owner_name Owner_add_1
135
113-Single SPRACHER
100FRED A &
Fam
3903989000000 WHITE
RESIDENTIAL
OAK DR
MARY M
Dweln
Owner Owner Taxable

Tax Class
Add2 Add3 Acreage
135 WHITE
OAK DR
1.3
ACT
2005
DESCRIPTOR
OWNER_ACCOU
319
Assessment
03-TAXABLE
199900
3903989000000
Total
Building Location
Total
Basement
Full Half
Bedrooms
Unfin
Lv
#
#
SQFT
Area
Baths Baths
SQFT
Wood Gas Cap
1
135
View Sketch Codes
WHITE
1.25
OAK DR
1964
1916
1533
1533 383
Sketch for Building Number: 1

Structure #
STRUCTURE
Measure 1
Measure 2
LINK_ID

Mobile #
Location #
Location Name
Year Built
WIDTH
LENGTH
LINK_ID

Building#
Location #
Location
Building Type
Grnd Floor Area
# Stories
Year Built
LINK_ID
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Account #
Location
Propery Class
Land
Use
Owner Owner Taxable

Tax Class
Add2
Add3 Acreage
1480
C/O
HOWMET
PO
220-Light
ALCOA
ALUMINUM ALUMAX
BOX
3902330000000 MANHEIM 200-INDUSTRIAL
INDUST
INC
PIKE
ALUM CORP
CORP
3167
1.5
ACT
2005
DESCRIPTOR
OWNER_A
319
Assessment
03-TAXABLE
ALUMAX
385700
3902330000
Total
Building Location
Total
Basement
Full Half
Bedrooms
Unfin
Lv
#
#
SQFT
Area
Baths Baths
SQFT
Wood Gas Cap

Structure #
STRUCTURE
Measure 1
074-WATER-TANK
20000
Measure 2
178721
LINK_ID
074-WATER-TANK
20000
178721
074-WATER-TANK
20000
178721
074-WATER-TANK
20000
178721
074-WATER-TANK
20000
178721

Mobile #
Location #
Location Name
Year Built
WIDTH
LENGTH
LINK_ID

Building#
Location #
Location
Building Type
Grnd Floor Area
# Stories
Year Built
LINK_ID
101
1480
MANHEIM PKE
305 INDUST-MFCT
2310
1954
178721
103
1480
MANHEIM PKE
410 MEDICAL-OFF
1710
1961
178721
102
1480
MANHEIM PKE
355 COM-GRGE-ST
2272
1961
178721
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Location
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Land
Use
1434
500COMMERCIAL 525-Snak MCDONALDS C/O AGA
3907933200000 MANHEIM
-RETAI
Bars
CORP
CORP
PIKE
Owner
Add2
449
GRANITE
RUN
DRIVE
Owner Taxable
Tax Class
Add3 Acreage
2.06
ACT
2005
DESCRIPTOR
OWNE
319
Assessment
03-TAXABLE
MCDONALDS 984200
3907933
Total
Building Location
Total
Basement
Full Half
Bedrooms
Unfin
Lv
#
#
SQFT
Area
Baths Baths
SQFT
Wood Gas Cap

Structure #
STRUCTURE
Measure 1
Measure 2
LINK_ID
042-IMPLMNT-SHED
12
30
178727
027-FENCE-WOOD-4
216
178727
056-PVNG-ASPHALT
50000
178727

Mobile #
Location #
Location Name
Year Built
WIDTH
LENGTH
LINK_ID

Building#
Location #
Location
Building Type
Grnd Floor Area
# Stories
Year Built
LINK_ID
102
1434
MANHEIM PIKE
205 FAST-FOOD-R
1545
2001
178727
101
1434
MANHEIM PKE
205 FAST-FOOD-R
4327
1983
178727
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Location
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1470
501-Comm
500COMMERCIAL
MARTIN
Vacant
3904131100000 MANHEIM
-RETAI
DAVID S
PIKE
Land
Owner Owner Taxable

Tax Class
Add2 Add3 Acreage
219
WESTVIEW
DR
0.25
ACT
2005
DESCRIPTOR
OWNER_A
319
Assessment
03-TAXABLE
72300
390413110
Total
Building Location
Total
Basement
Full Half
Bedrooms
Unfin
Lv
#
#
SQFT
Area
Baths Baths
SQFT
Wood Gas Cap

Structure #
STRUCTURE
Measure 1
056-PVNG-ASPHALT
15000
Measure 2
LINK_ID
178717

Mobile #
Location #
Location Name
Year Built
WIDTH
LENGTH
LINK_ID

Building#
Location #
Location
Building Type
Grnd Floor Area
# Stories
Year Built
LINK_ID
101
1470
MANHEIM PKE
400 OFFICE
1560
1974
178717
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Stan J. Caterbone
ADVANCED MEDIA GROUPFreedom
From Covert Harassment & Surveillance,

1250 Fremont Street

Lancaster, PA 17603
EXCLUSIVE Transcripts of Whistleblower Testimonies of

Targeted Individuals and U.S. Sponsored Mind Control
Published by Advanced Media Group June 2, 2016
______________________________________
June 2, 2016
TABLE OF CONTENTS
1.
2.
3.
4.
Background of Stan J. Caterbone as a Targeted Individual

Karen Stewart, NSA Whistleblower and Targeted Individual
There is no doubt that NSA is now run by sycophants and sociopaths
EXCLUSIVE: Former NSA Employee Speaks Out on its Corruption # Karen
Stewart
5. The Interview
6. NSA Whistleblower Comes Out of the Shadows Into the Light by Karen
Stewart
7. The Interview
8. Julianne McKinney, US Army Intelligence Officer, Whistleblower, and
Targeted Individual
9. Transcript Of Greg Szymanskis Interview With Julianne Mckinney
10.
Dr. Nick Begich, Author and Expert Researcher of U.S. Sponsored Mind
Control
11.
October 1, 2015 Nick Begich Lecture at the Covert Harassment
Conference in Berlin, Germanay
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Stan J. Caterbone
ADVANCED MEDIA GROUPFreedom
From Covert Harassment & Surveillance,

1250 Fremont Street

Lancaster, PA 17603
CORROBORATING EXPERT AND FORMER NSA WHISTLEBLOWER

KAREN STEWART
DISCLOSURE OF ELECTROGAGNETIC WEAPONS USED TO KILL CERTAIN
TARGETED INDIVIDUALS DURING APRIL 10, 2016 RADIO INTERVIEW
June 2, 2016
BACKGROUND
Stan J. Caterbone's International Signal & Control or ISC Whistleblowing History and Mind
Control Relationships are outlined in the following statements and declarations, which have
already been proven and verified and have never been specifically contested in any court of law:
Stan J. Caterbone was a Federal Whistleblower in 1987 regarding ISC
The 29 False Arrests and Prosecutorial Misconduct that Stan J. Caterbone was subject to in 1987
through 2015 was an effort to cover-up the allegations made by Stan J. Caterbone in the Spring
and Summer of 1987 after the Meeting of June 23, 1987 with ISC and United Chem Con Executive
Larry Resch.
The ISC Fraud and Sales of Arms to Iraq Story by the ABC News Nightline with Ted Koppel and
the Financial Times of London in May, July, and September of 1991 was most likely initiated or
was corroborated by Lancaster Newspapers reporter Thomas Flannary.
Thomas Flannary's mysterious death in February of 2004 was either murder or was a cover story
to hide the fact that he was a CIA operative used to control the flow of information,
disinformation, and propaganda. It is highly subject that he began his career with Lancaster
Newspapers in 1987 and is not a native Lancastrian.
Exclusive Transcripts
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The ISC merger was not completed until December of 1987, 3 months after the False Arrests of
Stan J. Caterbone.
The official meeting with the Pennsylvania Securities Commission Agent Howard Eisler in
September of 1987, which was solicited by Agent Eisler was an effort to illegally interrogate Stan
J. Caterbone without a legal subpoena.
In the months after the June 23, 1987 meeting with ISC Executive Larry Resch Stan J.
Caterbone had personally solicited a vast array of local, state, and federal officials, including the
FBI and Congressman Robert Walker, PA State Representative Gibson Armstrong for assistance in
the retaliation and slander campaign that was in progress. There is credible linkage between the
ISC Scandal, U.S. Sponsored Mind Control, Stan J. Caterbone's family VICTIMIZATION of the
same, and the participation of LANCASTER COUNTY, PENNSYLVANIA.
The Zook Murder Appeal proves that Lancaster County Detective Michael Landis, Judge James
Cullen, and Judge Farina of the Lancaster County Court of Common Pleas were all involved in U.S.
Sponsored Mind Control before 2004 and before Stan J. Caterbone went public with his
VICTIMIZATION of U.S. Sponsored Mind Control.
Bobby Ray Inman, former director of the National Security Agency (NSA) was on the Board of
Directors of ISC and was involved in U.S. Sponsored Mind Control Technologies through his
company S.A.I.C. Corporation. Bobby Ray Inman would later be selected by Former President Bill
Clinton for his Director of Defense, but would later remove himself due to allegations and public
scrutiny for his role in the ISC scandal.
In the Fall of 1991 Robert Gates was nominated for Director of the Central Intelligence Agency
(CIA) and during his televised confirmation hearings the was subject to brutal array of questions
concerning his participation in the ISC scandal. He went on to be nominated and later would serve
both the Bush Administrations and the Obama Administrations as Secretary of Defense until
resigning in 2011.
There have been at least 3 documented attempts on the life of Stan J. Caterbone; 1987, 1991,
and 2004, all attempts at vehicular homicide. Thomas P. Caterbone's passing in 1996 was the
result of a wrongful death claim by Fulton Bank. Samuel A. Caterbone was most likely an KULTRA
murder tactic in Santa Barbara, California on December 25, 1984. Samuel P. Caterbone was most
likely the result of an MKULTRA murder tactic on July 20,2001 in New York city.
The above finding of facts and evidence corroborates a vast conspiracy and criminal enterprise
that violates both civil and criminal RICO statutes and antitrust statutes.
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The above would constitute treble damages for Stan J. Caterbone and Advanced Media Group in
U.S. District Courts, specifically in the Eastern District for Pennsylvania Case No. 05-2288, 064650, 14-02559, and other related cases; and Case No. 08-13373 in the Lancaster County Court
of Common Pleas.
THE DISCLOSURE
Karen Stewart graduated from Florida State University in 1979 with a BS degree in German
Language and a minor or co-major equivalent in Fine Art. She worked for NSA (National Security
Agency) from 1982 to 2010. Her resume will follow.
Her video interviews can be seen on the following YOUTUBE links:
Wheel of Freedom (WUA) 4/4/16 Ex-NSA Karen Stewart

https://www.youtube.com/watch?v=ExpCL27ft10
NSA whistle blower Karen Stewart exposes targeted Individuals, 9/11

https://www.youtube.com/watch?v=ravXai6nfMg
On March 9, 2016 I was detained and falsely imprisoned by no less than 8 NSA Security
Police on the barracks of the Headquarters of the NSA at Ft. Meade Maryland. I was handcuffed,
and interrogated for over an hour, while my car was dog sniffed and searched. I was ordered to
return to Lancaster rather than continue on to Washington, D.C., and was ordered not to enter
any federally owned property again. The following is a video of my statement:
Statement and Video of False Imprisonment re Handcuffed and Interrogation for an hour at NSA
Headquarters (National Security Agency at Ft. Meade, Maryland) by 8 NSA Police officers on March
9, 2015 Recorded on March 11, 2016
https://www.youtube.com/watch?v=FeXlaQn5Nhs
Karen Stewart's resume at the NSA is as follows: I Worked various projects over the
years, not just USSR/Russia, but various countries researching/reporting on foreign military status
and alliances, weapons development and proliferation, the Chernobyl disaster and aftermath, the
fall of the Iron Curtain and changing relations among newly liberated countries, economic and
diplomatic developments of certain target countries. I researched and wrote a series of
intelligence
reports
in
support
of
Operation
Iraqi
Freedom
that
kept
secret
Russian
countermeasures sold to Iraq from wreaking havoc on the American invasion. This ultimately is
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what got me fired because I questioned why my work was used to promote another employee
who had no experience with but, was credited with my work .
The following transcript of an interview by Karen Stewart in which she describes the lethal
electromagnetic weapons and her experience on being on the receiving end was taken from the
article titled NSA Whistleblower Comes Out of the Shadows Into the Light and can be
found at:
http://canadafreepress.com/article/nsa-whistleblower-comes-out-of-the-
shadows-into-the-light
The article was written by Sher Zieve -- Bio and Archives and published March 28, 2016. The
byline is as follows: In February, 2014 I published an interview of an NSA Whistleblower. This is a
follow-up to that column. Due to recent threats to her person and other exigent circumstances,
the Whistleblower has decided to come out of the shadows and into the light. I am honored that
she again chose me to write her story.
KAREN STEWART'S TRANSCRIPT

First of all, the case STEWART V. NSA is a righteous lawsuit, (brought in 2010) meaning
it is a clear case of employer abuse of power and position to an egregious and even premeditated
criminal level meant to circumvent whistleblower protection laws like the No Fear Act. Simply put,
I asked the NSA Inspector General (IG) to investigate why my award-winning intelligence report
series supporting Operation Iraqi Freedom (2003) was used to promote an entirely different
woman twice (2004 & 2005) one who had nothing to do with my reports whatsoever, and was a
known incompetent, but had methodically sexually compromised many of the male managers
within the Weapons & Space (W&S) Directorate. Instead of following correct procedure, the IG
and NSA Security decided to cover up the infraction by attacking me. Threats were made to paint
my complaint as paranoid and to fire me for a non-existent mental illness if I did not drop my
effort to get credit for and the promotion for my own work, given to the wrong woman. These
threats quickly took shape as false accusations against me by the guilty personnel obviously
coached by Security, manifested with stalking harassment masquerading as an investigation by
NSA Security goons from 2006-2009. In late 2010, despite all evidence showing my innocence
from ridiculous and impossible charges, I was fired by an NSA Kangaroo court with a
predetermined agenda. My EEOC appeal (lawsuit) had been accepted for adjudication and the
judge had ordered no adverse action until its adjudication but NSA ignored his orders.
I moved from Columbia, Maryland back to my familys hometown of Tallahassee, Florida in
2011. All was quiet until February 2015 when I instructed the law firm I had hired to subpoena
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evidence from the Maryland Department of Motor Vehicles identifying a burglar (a now retired NSA
Executive) who had broken into my home very shortly after I had tried to make my 2006
Inspector General request for an investigation, and stolen extra house, car, and mail keys as well
as illegally bugging (burst bug) our home and phone/internet to facilitate further harassment and
likely search for blackmail material (no luck for them there).
After the subpoena, I began noticing Security types in Tallahassee following me and photostalking me by March/April. Their license plates suggested Naval Security Group from Pensacola
and NSA Security personnel from Georgia (Augusta) and Texas (San Antonio). A quick check with
the Leon County Sheriffs Department, specifically Duty Officer deputy Canon, confirmed that NSA
also had personnel land at a private airport and deputies had escorted them the the Phipps
property north of Lake Jackson (near where I now live) for a secret exercise, just before the
second round of stalking harassment began. The sequence of events seems to have been for NSA
Security to contact the Naval Security Group in Pensacola, Florida (Headquartered at Ft. Meade,
Maryland along with NSA) to initially stalk and photograph me under ridiculous false pretenses
until NSA could send its own Security personnel to Tallahassee. Once there, under guise of
authority, it appears that NSA enlisted the help of the Florida Department of Law Enforcement
(FDLE) and its civilian group, InfraGard, made up of civilians recruited from their Ride-Along
programs. As usual, NSA personnel fabricated some big lie as to why the civilians should actively
and passively stalk and harass me, and despite quite obvious questions about why laws and due
process were to be completely suspended in my case, the group eagerly jumped at the
opportunity for hundreds to gang up on one person (for Federal money, I may add).
Thus, under NSA tutelage and FDLE auspices, suddenly I was a cast-iron target, meaning
multiple people covered me wherever I was, whatever I did. Cars were even stationed near my
home overnight on rotating shifts, beeping to each other when changing shifts but also for my
benefit. NSA also sought out willing neighbors to augment their snooping and harassment efforts,
which could be anything from hosting an NSA Security goon for accessibility to my property, both
home (to bug and monitor short-distance transmissions) and car (to install and switch out vehicle
GPS trackers to facilitate car stalking and impeding as harassment. ) Those were the active
participants, others not assigned to me on a certain shift were ordered to quickly text in to a
special site the big bad threat to report my location and time I was there. People even snooped
in my shopping carts to be able to tattle to someone about what I was doing, what I was buying.
(God help us, she bought bananas!!! Save the children!).
This was annoying enough but I tried to ignore it because I thought NSA once again was
going for the usual See, shes paranoid, reporting harassment every day now just dismiss her
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lawsuit! But I did report acts of harassment that caused physical damage such as hit
and run, purposely sideswiping my car, (This is exatly what happened to the
PETTITIONER on May 9, 2016 enroute to MEDEXPRESS for pain medications) and
botching the placement/removal of a GPS tracker under my rear spoiler that destroy my
spoiler. (They feared my mechanic would find their tracker so they botched its removal
the night before my appointment). I even made fun of my stalkers when I could, using
my hobby art shop on a popular internet site to create bumper magnets making fun of
them. After all, they were mostly nave, unsophisticated boobs who desperately
imagined that they were little James Bonds and that the greatest existential threat to
their country was a woman waiting for her lawsuit to be decided, living in Tallahassee,
walking her dogs, visiting friends.
In late November 2015, however, NSA apparently decided that I was not
sufficiently being intimidated by their civilian confederacy of dunces to back off my
lawsuit to recover my stolen salary and stolen retirement at the appropriate pay level.
In 2009 I had researched gang-stalking and discovered it was a real and growing
phenomenon, but when electrical harassment was mentioned, I could not really grasp
the concept and wondered about its existence. But I was to find out first hand in
November 2015 that it does exist and is a horrific crime against humanity.
NSA and its operatives started using small, mobile devices called Directed Energy
Weapons (DEWs) against me and my family in the night. These mobile weapons emit
multiple types of electrical emanations from ultrasonic, to microwaves modulated to
radio frequencies, to other kinds of wave variations I cant say I understand yet. Now,
with the help of certain mercenary and morally depraved neighbors, the effort is almost
24/7 now with the intention being torture and slow-kill. These types of weapons over a
lengthy time, cause cancer, autoimmune disease, heart attacks, seizures, strokes, etc.
It is the perfect stealth murder weapon for a corrupt government.
At this point, when we leave the house, a criminal base of stalkers has been
enlisted by NSA to follow us and aim the DEWs at us wherever feasible to increase
exposure in order to speed up death, with the help of the InfraGard dimwits still texting
in my location like good little sheeple.
The Leon County Sheriffs Department as well as the Tallahassee Police

Department are dragging their feet, making excuses, denying any such thing exists, or
insulting me when I try to enlist their help to come up with a strategy to combat this
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new crime before I or one of my family is dead. They cant quite grasp the fact that
this is domestic terrorism and nothing protects the police or any official from this new
weapon held and wielded by criminals. Yet, plenty of recruits in their ranks have
experience using the mobile DEWs in Iraq. It is very interesting to me that the Naval
Security Group headquartered at Ft. Meade with NSA, is also called the Silent
Warriors because they specialize in the use of Directed Energy Weapons. Im sure the
Naval Security Group base in Pensacola has many on hand and may have even gotten a
request from NSA to borrow a few for their secret exercise in Tallahassee.
Clearly, NSA is of the opinion that you do not have Constitutional Rights unless
they say you do. If they use this to get rid of an inconvenient lawsuit such as mine
instead of simply settling for a tenth of the cost of harassment, then they must feel
confident they can murder anyone, anywhere, for any reason and get away with it
including any leader or politician.
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There is no doubt that NSA is now run by sycophants and sociopaths
EXCLUSIVE: Former NSA Employee Speaks Out on its

Corruption Karen Stewart
By Sher Zieve -- Bio and Archives
February 20, 2014
3 Comments | Print Friendly | Subscribe | Email Us
At the very least, for the past few months to a year it has become increasingly evident that
although not allmany agencies of the US Federal government have become increasingly dirty,
perverse and corrupt and require a deep and thorough cleaning.
The US Secret Service has previously been exposed as including claims of involvement with
prostitutes, leaking sensitive information, publishing pornography, sexual assault, illegal wiretaps,
improper use of weapons and drunken behavior and the IRS was caught and admitted to denying
Obamas political enemies (aka TEA Party, Christians, religious Jews, conservatives) their
Constitutional rights while allowing progressive groups (aka Liberals, Leftists, Marxists, Maoists,
Socialists, Communists) theirs. Andlove him, hate him or fall somewhere in-betweenEdward
Snowden shone a very bright light on the unconstitutional domestic mega-spying of one of these
clandestine agenciesthe National Security Agency. Thus far, under Obamas increasingly iron
rule, few-to-no members of these agencies have even been indicted by Congress for their blatant
crimes against the American people.
The NSA appears to have begun as a patriotic organization that was geared toward protecting the
USA and its citizens. Whether or not that was its original intended purpose is a subject for
discussion and speculation. However, portions of the NSA seem to have devolved into something
very sinister. Todays interview will concentrate on this agency.
NSA Analyst. Due to a number of substantive reasons, this former Analysts identity cannot be
divulged at this time and will be referred to as W. I have, however, confirmed this individuals
prior employment and credentials via a well-known NSA Whistleblower. The information
disseminated to me, amongst other things tells a sordid story of corruption and how employees
are silenced into submissionvia fearwithin the agency,
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The Interview
Sher:Thanks so much for being with me, today, in order to provide essential additional
information to the public on how many of their tax dollars are really being spent. You were
employed by the NSA for over two decades. Would you tell the readers what initially attracted you
to the agency as well as how it has deteriorated over time?
Karen Stewart: Like many people from families with a strong history of serving our country,
coming out of college, I looked to find a way to best utilize my particular interests and talents in
service to my fellow Americans. The mission of the NSA it seemed to me, was to stop threats
coming to our shores. Its charter clearly targeted foreign nationals on foreign soil who did or
could intend us harm. That appealed to me as a righteous endeavor and honorable tack for my life
to take.
Sher: Youve shared with me how the NSA deals with its employees who bring legitimate
complaints to their superiors. How thoroughly intimidating and threatening are their behaviors
toward those who balk at their adverse treatment? Would you give a few examples?
Karen Stewart: Apparently the nature of NSA Security degenerated under General Michael
Hayden, the previous Director of NSA (DIRNSA), who promoted a very questionable mid-level
Security manager to a power position within Security. Hayden had originally been tasked to
eviscerate NSA since a very shallow and short-sighted Congress believed that the fall of the Iron
Curtain meant no danger existed anywhere anymore that required the existence of a robust NSA
presence. There evolved, under him, a gratuitously vicious bully mindset that employees were to
be intimidated at any opportunity not only to drive them out of NSA but to cut back on people
reporting problems that made NSA look bad, especially problems involving upper management.
Under Hayden and his successor, General Keith Alexander, the filing of complaints to or requests
for investigations by the NSA EEO or the OIG (Office of the Inspector General) were often
inexplicably blown off despite adequate evidence or the presence of willing witnesses. Then the
person who had filed the complaint would be subjected to an out of cycle reinvestigation
interview with Security as well as polygraph exam, wherein the tone of the Security person was
not neutralas it should bebut, hostile with far-fetched or even ridiculous non-issues presented
as potentially problematic. This was a Security shot across the bow to warn the person that he
had crossed the line by filing the complaint. If he pursued the complaint, Security would lean on
his managers to heavily discourage him from doing what he thought was proper and was indeed a
protected action under the law. If he persisted, did his own amateur investigation, or told
coworkers about the situation, he might be called down to Security multiple times and accused of
being paranoid and delusional based on his complaint, and his job threatened.
The worse the infraction reported, especially if a high level manager looked to be involved, the
more severe the reaction by Security. In cases of egregious wrong-doing by a manager, Security
would review the personnel files, medical files, and financial statements to find anything they
could use to threaten or blackmail him with, or pretend to misinterpret some tidbit of information
as something it was not.
Some people were forced to sign admissions of guilt of preposterous misinterpretations of facts in
order to keep their jobs, thereby killing their credibility and complaint. When nothing was found in
such files that could be used, a false accusation of espionage or leaking classified materials ginned
up by Security, was used to justify a Security intrusion into the persons home to search for
blackmail material, further assess the interests and personality of the targeted individual (TI), and
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plant bugs and abscond with an extra set of keys for further intrusions. The more the person
objected to being bullied, the more heavy-handed Security became, insisting that hostility toward
them indicated wrong-doing on the TIs part. Thus the TI would become harried and
harassed for a crime he never committed, if it ever even was committed, and to
repeated accusations by Security Psych services of a non-existent mental illness, more
than adequately supported by years of internal, psychological evaluations stating he
was mentally sound (Paranoia with delusions is rare and certainly never occurs
overnight, but that does not deter a Security psychologist attack dog, whose favorite
mode of attack employs reference to this malady).
The more a person stood his ground, the more personal it became to Security, which
then became dedicated to the personal destruction of the TI. Under the pretext of the
fake accusation of espionage or leaking classified information, Security would slander
the individual with his coworkers, work friends and managers to isolate him and apply
yet more pressure. Many backed away from supporting the TI in fear for their careers
and maybe even freedom. Certainly this sent a message to the workforce in the TIs
area that NSA Security was at its essence, a rogue, unaccountable and psychotic entity
that was to be greatly feared.
Once NSA Security had decided upon the removal of the TI for failing to be sufficiently
cowed, then false evidence was given to the FBI liaisons assigned to NSA. This would
engender a fraudulent FISA warrant, which loosed FBI surveillance and investigators
upon the person for a few weeks or months, further slandering him to his work and
social circles and thereby putting pressure on him by their constant presence. When the
FBI would find no basis for the accusation, they would drop the case and move on.
However, at that point, Security would send in their own personnel sans warrant, to
overtly stalk and harass the TI , 24/7.
In some instances, Security has even gone into the persons

neighborhood to recruit snitches and augment harassment
with hostile civilians convinced the TI is an enemy of the state,
based on baseless Security slander.
Intrusions would be made into his home to remove gathered evidence or
move things around as a psychological ploy and his car would be secretly
GPSd to facilitate vehicular stalking and aggressive driving games.
There have even been reports of pet murders by poisoning as an
escalation of the harassment with the inferred threat that perhaps it
could be the TIs child or himself next. The harassment is essentially
elevated until the TI either breaks and assaults a harasser or
complains to Security about the insane and sadistic, not to mention
criminal way in which he is being mistreated. This is what Security
planned for and is ready to jump on as their springboard to terminating
his employment.
His security clearance is immediately pulled, he is warehoused in a menial job until adequate
paperwork and a back-story can be fabricated or forged to falsely present a termination due to
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mental instability or illness, and the person is fired. Of course there is an appeals process, but it is
thoroughly corrupted. No matter how much evidence supports the victim and how little supports
NSA, NSA always wins these cases where it is clear the person was targeted for dismissal. Of
course, this does nothing but embolden more degenerate or criminal behavior while making it
clear that the person reporting evil will be considered the problem, and that in reality no labor
laws or whistle protection laws can actually protect an NSA employee, because real watch dog
entities dont exist within NSA and state and Federal authorities routinely turn a blind eye to the
reported abuses even as they become more criminal and seditious.
I shake my head at sycophant, disingenuous politicians who claim Edward Snowden could have or
should have gone through proper internal authorities to report the abuses and criminal acts
being committed within NSA. Would that be to the thoroughly corrupted, attack dog-watch dog
entities, or the thoroughly oblivious or compromised politicians responsible for oversight who are
in fact, in the NSAs pocket due to bribery, blackmail or stupidity?
Sher: The NSA seems to suffer from the some of the same maladies as did the recent outing
the Secret Service. Without becoming too specific, would you give us a general idea as
advancement for sexual favors that have occurred within the agency? How defeating is that
employees who are simply working to protect the country while their bosses are indulging
sexual liaisons with lower level employees?
of
to
to
in
Karen Stewart: In my career, promotions were always hard to come by, meted out perhaps
every five years if you were a good or exceptional worker, but male managers discovered that
they held the keys to paradise in regard to attractive or even acceptable women willing to take
shortcuts. These were the women who would make promotions in stunningly rapid succession with
little to no accomplishments - of their own, that is. While others killed themselves with years of
grueling shift work or even multiple dangerous foreign assignments only to find themselves
evaluated as a 3.6 on a scale of 5, when an attractive, morally loose recent college graduate
would receive a 4.8 for essentially alphabetizing a shelf of reference books her first 6 months on
the job. This made many, many people bitter and certainly sent the wrong signal to the hardest
workers and the most talented. Though many stopped being as dedicated to their jobs, others did
indeed press ahead and worked tirelessly knowing their reward was the mission accomplished and
not likely appropriate recognition. Capable men despaired of receiving deserved promotions and
women almost feared being promoted for exceptional work, fearing they would be assumed to be
one of the typically incapable promotion bimbos among the bloated management. Expertise and
knowledge became commodities to guard and not share with new workers, fearing you would not
reap the benefits of your own work. This of course created a situation where expertise and insight
must be gained and regained from scratch, losing precious time training up area or target experts
to the detriment of the mission.
It was very discouraging to see immature or degenerate bosses spending their time flirting and
chasing skirts, the very same people who were charged with competently reviewing your work,
(keeping apprised of the big picture so people felt free to specialize their research), and whose
responsibility it was to accurately and honestly represent their people before promotion boards.
But the atmosphere of secrecy, the strict laws about divulging names of NSA employees or
anything that occurred there, emboldened certain men to believe that their wives and families
would never know of their indiscretions, and turned work time into play time for them. And now
apparently young males are also being pursued as sexual toys. One has to wonder what is being
missed in the realm of highly perishable intelligence leads by distracted managerial incompetents.
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Sher: As an additional example of NSA intimidation, one of the things youd said may be shared is
your experience with the 3 Amigos. Would you tell us about them?
Karen Stewart:There were three eccentric looking older males who were often seen in the NSA
OPS1 cafeteria together, whom we also got to know by word of mouth, as master electricians wellversed in computer science. They were nicknamed by some in the analyst field as Rasputin,
Santa, and Choo Choo or the engineer, due to their highly unusual appearances and dress.
One eye witness being harassed on yet another NSA Security retaliatory witch hunt, reported
seeing one of these men at her home, on her property, when she discovered indications that her
home had been broken into, her cable box broken into, and her phone hacked, leaving tell-tale
clicking sounds at regular intervals whenever she used her phone. Any phone tap done by warrant
is done at the carriers hub under their auspices and will not click, only illegal hack jobs click.
She noted him not only as a trespasser being somewhere he should not have been, but
recognized him by his highly unusual appearance from work. When she attempted to look him up
in the NSA data base by career specialty, she found that what should have been his photo, which
should have been a source of pride since he was of the rank to be a Flag Badger (Manager whose
rank is senior enough to garner a photo with the American flag in the background), was instead a
photo of a desert animal called a Meercat indicating that he wanted his identity hidden from the
general NSA population.
Sher: With regards to many who have said that the NSAs collection of meta-data on all forms of
communication between legal citizens of the USA is unconstitutional, also indicated is the fact that
not one terrorist act has been stopped by said collection. It appears good old-fashioned police
work is what still gets the perp. In your opinion, is this accurate?
Karen Stewart: I think it is indeed true that the meta data collection ruse within the USA
distracts from tried and true research and investigation, which the latter method apparently DID
INDEED uncover the 9/11 plot months before it happened, well in time to have prevented it,
according to two separate analysts with whom I have spoken, one just two days after 9/11 as he
broke down and sobbed his heart out, repeating We could have saved them! We could have
saved them! But they wouldnt let us report it!, and the other several years later, who maintained
the same story of being threatened and forbidden to report any warning about 9/11, then being
harassed and fired for a non-existent mentally illness. However, it is a good means to track your
political enemies and detractors and their affiliates within the US - for future reference? It would
appear much more for the self-preservation and expansion of NSA as the ubiquitous Orwellian Big
Brother than for the protection of the USA. With the power the NSA wields, it could easily
influence border control issues and immigration issues to make us not as susceptible to terrorist
intrusions and infiltrations, but that would undermine their power grab and expansion within the
US, something never intended at NSAs creation - and for good reason.
Sher:As a former long time employee of the NSA, what do you believeif anythingcan be done
to correct the problems within the agency?
Karen Stewart:There is no doubt that NSA is now run by those sycophants and sociopaths who
are the least desirable to have in any position of such sensitivity and trust and are purging NSA
ranks of people with integrity. Compromising activity that would rightfully cost you your clearance,
is now viewed as intrinsic perks of the job once you reach a certain pay grade. These lesser
leaders have turned NSA into an American Gestapo Wanna-Be agency. NSA lost its way with nonserious super grade playboys not mature enough for the responsibility of the job of managing and
directing NSA, compounding the problem by promoting sycophants to protect their backs as well
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as lightweights with whom to have sexcapades behind office doors, but in that group also has
risen opportunistic sociopaths and psychopaths attracted to more and more power, any way they
can get it, and by conniving and ruthlessness have blown past incompetent, distracted
management to change the very nature of the NSA from watchman to the American people to
jack booted prison guard.
If the Legislative Branch is possessed of anyone with the least bit of courage and common sense,
they would demand super clearances for those on the Intelligence Oversight Committees so that
years or decades of abusive behaviors, kingdom building, or even crimes can not continually be
swept under the rug by telling these particular politicians, You dont have the need to know, just
trust us. Obviously, they cannot be trusted. An appointment to that Committee would of course
have to become much more exclusive, requiring a thorough vetting as any job with a Top Secret
clearance should. But to deal with the toxic management at NSA now, I would require every Flag
Badger and Security manager to account for himself and what he adds to the mission. If he is
pork, retire him or require him to laterally transfer to another agency. Before that however, I
would require that every single Flag Badger and every Security group manager take a polygraph
by non-NSA affiliated or non-NSA sympathetic sources to account for the millions of dollars
wasted on their vicious and illegal war on NSA employees who dutifully report fraud, waste, abuse
as well as sexual predation and treason. Those who are found to be guilty of such things as
falsifying accusations against innocent employees; fabricating false witnesses and evidence;
engaging in illegal acts of breaking and entering; falsifying FISA warrant justifications; lying to the
FBI about a targeted victims criminality; falsifying psychological assessments; subverting lie
detector exams by screaming at the targeted subject during or just before the exam to create
false impressions of guilt; hiding or destroying exonerating evidence supporting their victims
claims; intimidating or roughing up witnesses; coordinating or participating in criminal stalking
and harassment activities, illegal break-ins, illegal wire taps, organizing and paying civilian groups
under the table to augment harassment of targeted employees, and lastly, conspiring to effect or
cover up any or all of these actions. And any NSA employee in that group who pleads the 5th,
should be fired and stripped of his retirement since this type of betrayal rots a country from
within. NSA must be recreated, and returned to the stated task in their founding charter of
focusing on foreign enemies overseas.
Sher: W, so much of the information youve provided is truly astounding! Thanks so much for
being with us today and I hope youll be available for another should ongoing events require one.
Click to view 3 Comments
Sher Zieve is an author and political commentator. Zieves op-ed columns are widely carried by
multiple internet journals and sites, and she also writes hard news. Her columns have also
appeared in The Oregon Herald, Dallas Times, Sacramento Sun, in international news publications,
and on multiple university websites. Sher is also a guest on multiple national radio
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1NSA Whistleblower Comes Out of the Shadows Into the Light Karen Stewarty
By Sher Zieve -- Bio and Archives
March 28, 2016
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In February, 2014 I published an interview of an NSA Whistleblower. This is a follow-up to that
column. Due to recent threats to her person and other exigent circumstances, the Whistleblower
has decided to come out of the shadows and into the light. I am honored that she again chose me
to write her story.
Her name is Karen Stewart Karen Stewart

BIO
Education
Freshman year - Schiller College, Strasbourg, Fr.
Sophomore - Senior years, graduated from Florida State University (79)
BS in German Language and a minor or co-major equivalent in fine art
Work History: 1982-2010 NSA (National Security Agency

Underwent initial retraining from 1982 - 83, on the job training to become a linguist in a needed
foreign language (chosen to train in depth in Russian since my college major, German was not in
demand but I had also studied Russian and French with good results).
Worked various projects over the years, not just USSR/Russia, but various countries
researching/reporting on foreign military status and alliances, weapons development and
proliferation, the Chernobyl disaster and aftermath, the fall of the Iron Curtain and changing
relations among newly liberated countries, economic and diplomatic developments of certain
target countries. I researched and wrote a series of intelligence reports in support of Operation
Iraqi Freedom that kept secret Russian countermeasures sold to Iraq from wreaking havoc on the
American invasion. This ultimately is what got me fired because I questioned why my work was
used to promote another employee who had no experience with but, was credited with my work.
Note...Due to the Top Secret nature of the work, the above summary is slightly vague, by design.
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The Interview
Sher: Karen, thanks for taking the time to speak with me and its so good to have you back and
this time under your name! As a Whistleblower, what finally made you decide to come out from
the shadows?
Karen: I always intended to link my name with my story because it is a story that needs to be
told, but since I have a lawsuit against NSA (technically an appeal of an unlawful, employer
action, i.e. my termination at the 28 point year of my career for trying to request an investigation
by the NSA Inspector General), sitting under a gag order demanded by NSA, on the docket at the
Equal Employment Opportunity Commission (EEOC) in Baltimore, I could not do so without risking
the adjudication going against me for that reason alone. However, in 2015 NSA Security made the
decision to yet again engage in a massive slander campaign against me in my new location, thus
breaking its own gag order so I feel no compunction to be held to a standard required by the
EEOC judge at NSAs request that NSA itself clearly holds in utter contempt.
Sher: Since we last talked, a lot has happened with you. You have refused to drop your
discrimination lawsuit against the NSA and have shared with me that the agency has stepped up
its efforts against youpersonally.
Youre now being stalked by what appear to be NSA operatives. Is that correct? As you reported to
me they, also, seem to be using electronic emanation technology to both stop and damage you. I
believe former NSA employee and Whistleblower Russel Tice reported on this, also. This is really
deep dark side information. Would you tell the readers what theyre doing to you, [possibly]
others and why?
Karen: First of all, the case STEWART V. NSA is a righteous lawsuit, (brought in 2010) meaning
it is a clear case of employer abuse of power and position to an egregious and even premeditated
criminal level meant to circumvent whistleblower protection laws like the No Fear Act. Simply put,
I asked the NSA Inspector General (IG) to investigate why my award-winning intelligence report
series supporting Operation Iraqi Freedom (2003) was used to promote an entirely different
woman twice (2004 & 2005) one who had nothing to do with my reports whatsoever, and was a
known incompetent, but had methodically sexually compromised many of the male managers
within the Weapons & Space (W&S) Directorate. Instead of following correct procedure, the IG
and NSA Security decided to cover up the infraction by attacking me. Threats were made to paint
my complaint as paranoid and to fire me for a non-existent mental illness if I did not drop my
effort to get credit for and the promotion for my own work, given to the wrong woman. These
threats quickly took shape as false accusations against me by the guilty personnel obviously
coached by Security, manifested with stalking harassment masquerading as an investigation by
NSA Security goons from 2006-2009. In late 2010, despite all evidence showing my innocence
from ridiculous and impossible charges, I was fired by an NSA Kangaroo court with a
predetermined agenda. My EEOC appeal (lawsuit) had been accepted for adjudication and the
judge had ordered no adverse action until its adjudication but NSA ignored his orders.
I moved from Columbia, Maryland back to my familys hometown of Tallahassee, Florida in 2011.
All was quiet until February 2015 when I instructed the law firm I had hired to subpoena evidence
from the Maryland Department of Motor Vehicles identifying a burglar (a now retired NSA
Executive) who had broken into my home very shortly after I had tried to make my 2006
Inspector General request for an investigation, and stolen extra house, car, and mail keys as well
as illegally bugging (burst bug) our home and phone/internet to facilitate further harassment and
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likely search for blackmail material (no luck for them there).
After the subpoena, I began noticing Security types in Tallahassee following me and photo-stalking
me by March/April. Their license plates suggested Naval Security Group from Pensacola and NSA
Security personnel from Georgia (Augusta) and Texas (San Antonio). A quick check with the Leon
County Sheriffs Department, specifically Duty Officer deputy Canon, confirmed that NSA also had
personnel land at a private airport and deputies had escorted them the the Phipps property north
of Lake Jackson (near where I now live) for a secret exercise, just before the second round of
stalking harassment began. The sequence of events seems to have been for NSA Security to
contact the Naval Security Group in Pensacola, Florida (Headquartered at Ft. Meade, Maryland
along with NSA) to initially stalk and photograph me under ridiculous false pretenses until NSA
could send its own Security personnel to Tallahassee. Once there, under guise of authority, it
appears that NSA enlisted the help of the Florida Department of Law Enforcement (FDLE) and its
civilian group, InfraGard, made up of civilians recruited from their Ride-Along programs. As
usual, NSA personnel fabricated some big lie as to why the civilians should actively and passively
stalk and harass me, and despite quite obvious questions about why laws and due process were to
be completely suspended in my case, the group eagerly jumped at the opportunity for hundreds
to gang up on one person (for Federal money, I may add).
Thus, under NSA tutelage and FDLE auspices, suddenly I was a cast-iron target, meaning
multiple people covered me wherever I was, whatever I did. Cars were even stationed near my
home overnight on rotating shifts, beeping to each other when changing shifts but also for my
benefit. NSA also sought out willing neighbors to augment their snooping and harassment efforts,
which could be anything from hosting an NSA Security goon for accessibility to my property, both
home (to bug and monitor short-distance transmissions) and car (to install and switch out vehicle
GPS trackers to facilitate car stalking and impeding as harassment. ) Those were the active
participants, others not assigned to me on a certain shift were ordered to quickly text in to a
special site the big bad threat to report my location and time I was there. People even snooped
in my shopping carts to be able to tattle to someone about what I was doing, what I was buying.
(God help us, she bought bananas!!! Save the children!).
This was annoying enough but I tried to ignore it because I thought NSA once again was going for
the usual See, shes paranoid, reporting harassment every day now just dismiss her lawsuit!
But I did report acts of harassment that caused physical damage such as hit and run, purposely
sideswiping my car, and botching the placement/removal of a GPS tracker under my rear spoiler
that destroy my spoiler. (They feared my mechanic would find their tracker so they botched its
removal the night before my appointment). I even made fun of my stalkers when I could, using
my hobby art shop on a popular internet site to create bumper magnets making fun of them. After
all, they were mostly nave, unsophisticated boobs who desperately imagined that they were
little James Bonds and that the greatest existential threat to their country was a woman waiting
for her lawsuit to be decided, living in Tallahassee, walking her dogs, visiting friends.
In late November 2015, however, NSA apparently decided that I was not
sufficiently being intimidated by their civilian confederacy of dunces to back off
my lawsuit to recover my stolen salary and stolen retirement at the appropriate
pay level. In 2009 I had researched gang-stalking and discovered it was a
real and growing phenomenon, but when electrical harassment was
mentioned, I could not really grasp the concept and wondered about its
existence. But I was to find out first hand in November 2015 that it does exist
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and is a horrific crime against humanity.
NSA and its operatives started using small, mobile devices called Directed
Energy Weapons (DEWs) against me and my family in the night. These mobile
weapons emit multiple types of electrical emanations from ultrasonic, to
microwaves modulated to radio frequencies, to other kinds of wave variations I
cant say I understand yet. Now, with the help of certain mercenary and
morally depraved neighbors, the effort is almost 24/7 now with the intention
being torture and slow-kill. These types of weapons over a lengthy time, cause
cancer, autoimmune disease, heart attacks, seizures, strokes, etc. It is the
perfect stealth murder weapon for a corrupt government. At this point, when
we leave the house, a criminal base of stalkers has been enlisted by NSA to
follow us and aim the DEWs at us wherever feasible to increase exposure in
order to speed up death, with the help of the InfraGard dimwits still texting in
my location like good little sheeple.
The Leon County Sheriffs Department as well as the Tallahassee Police Department are dragging
their feet, making excuses, denying any such thing exists, or insulting me when I try to enlist
their help to come up with a strategy to combat this new crime before I or one of my family is
dead. They cant quite grasp the fact that this is domestic terrorism and nothing protects the
police or any official from this new weapon held and wielded by criminals. Yet, plenty of recruits in
their ranks have experience using the mobile DEWs in Iraq. It is very interesting to me that the
Naval Security Group headquartered at Ft. Meade with NSA, is also called the Silent Warriors
because they specialize in the use of Directed Energy Weapons. Im sure the Naval Security Group
base in Pensacola has many on hand and may have even gotten a request from NSA to borrow a
few for their secret exercise in Tallahassee.
Clearly, NSA is of the opinion that you do not have Constitutional Rights unless they say you do. If
they use this to get rid of an inconvenient lawsuit such as mine instead of simply settling for a
tenth of the cost of harassment, then they must feel confident they can murder anyone,
anywhere, for any reason and get away with itincluding any leader or politician.
Sher: Why in the world do you think the NSA simply didnt settle the suit? With all of the
documentation you have, it seems that they are guilty of the discrimination and could have spent
far less of the taxpayers money to simply pay you off and make it go away. They would, also,
have avoided this coming out into the open. Are they that arrogant and Narcissistic?
Karen: This has truly NEVER made any sense to me or any of my friends, even those who worked
at NSA. NSA could have investigated, claimed a mistake had been made and retroactively
promoted me without even addressing the unethical behavior of W&S personnel. Instead, the IG
refused to investigate, illegally of course, but I could not have made him do his job. Plus, the
guilty were instructed to blame me for what turned out to be the first leak by ex-NSA executive
Thomas Drake, despite the fact that I had no access to, knowledge of or training in the type of
material he leaked (computer technology) and he was identified as the source of that leak six
months before I was fired. The polygraph section of Security actively tried to sabotage my
polygraph exams in response to the false counter-accusation by inappropriately screaming and
threatening me, making it impossible to pass a polygraph, which ruined my first polygraph in this
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regard though I passed the next two of the three given in reaction to the false accusation.
The EEOC is capped at $300,000 actual damages, no punitive allowed. My intention was to get the
lost difference in my wages as a GS-12 when I should have been a GS-14, and to get the
appropriate level of retirement. Yet, clearly, NSA has spent millions organizing and paying civilians
(and greasing the palms of crooked law enforcement) to harass, bully, intimidate,and quite
obviously viciously slander me.
Do they engage in such psychopathic behavior because they can? Because they simply have no
real oversight? The operational head of NSA Security is indeed rumored far and wide to be an
actual psychopath who is obsessed with paintings of Dantes Inferno.
A coworker who worked in NSA Human Resources says she remembered when the resumes of
inappropriate people (criminals, perverts, mentally unstable) were automatically thrown away but
suddenly when General Hayden, a former NSA Director, promoted this particular man, the
resumes of thieves, moral degenerates, etc., were then coveted by Security. She said that she
was so upset that she had to find a different job. I did read an opinion on the Anti-polygraph site
that NSA Security leadership, and hence all of Security in essence, could be said to suffer from
Dark Triad personality disorder, which is a dangerous combination of such things as (malignant)
narcissism, sociopathy, etc. Their egos are such that they are obsessed with winning at all costs
even fighting to keep a known false accusation from being proven false by their victim, because
they exist in their own projected narrative. They exist in their own lies and cannot stand being
exposed. This means they follow their own agendas. What is good for NSA Security leadership,
even at the cost of NSA or the USA. Their allegiances are to themselves. This has made me
wonder, of late, if the woman who Security protected instead of reprimanding or firing for sexually
compromising W&S management was not a Security plant, meant to do just that. And, in so
doing, was NSA Security procuring a means to blackmail these managers for themselves or
another entity, perhaps foreign?
Sher: You have multiple photos and even drawings youve made of you stalkers. Youve also
indicated to me that the NSA has been in touch with your local law enforcement. Said law
enforcement is siding with the NSA against youa private citizen. What do your attorneys have to
say about these?
Karen: At the beginning of my search for a law firm to take my case, Melville Johnson PC
informed me that I had potentially two cases, in 2009, an employment law case and a criminal
case. I could only afford to pursue the employment case since I was facing illegal termination on
false pretenses within a few months. While my lawyers have recorded the information about the
new assault campaign by NSA in Florida, thus far their pleas with the EEOC for some kind of
response because their client is now in physical danger have been completely ignored.
What has been going on in Florida is entirely criminal and could be a separate lawsuit, to even
include law enforcement in regard to their depraved negligenceif not complicity. But, at the
moment, I am concerned with surviving the relentless Directed Energy Weapons assaults. If I do
not, then my family will have to consider a wrongful death lawsuit against NSA, FBI (that refuse to
get involved because NSA is involved), and the FDLE, the TPD and Leon County Sheriffs
Department as well as certain complicit neighbors accepting a new riding mower or new carpeting
in exchange for helping NSA murder an inconvenient person who actually thought she had any
Constitutional, human, or Civil Rights.
Sher: With regards to your lawsuit, what are your current plans?
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Karen: Good question. Reporting and recording the new barrage of assaults has whittled deeply
into my retainer. This was hard enough to maintain after spending about $110,000, thus far, and
often countering ridiculous and frivolous legal shenanigans by NSA to waste my money. With an
outrageously unresponsive EEOC, which may indeed be a complete and obscene sham for show,
one wonders why continue with the pretense that we exist as a nation of laws? Clearly, we do
not.
The government has no desire for a level playing field to impede its quest for complete tyranny.
We are now a nation of wolves and sheeple. Im sure that after getting wind of this article, NSA
will come to the EEOC with big crocodile tears claiming they need to win by default because I
broke the gag order after they themselves spent millions, bald-faced lying to thousands of
civilians, law enforcement and (apparently) the FBI about me, invoking National Security Letters
to swear them to secrecy and to hide the true nature of their faux secret exercise in Tallahassee
i.e., enticing a foolish community to stalk, harass and commit murder for Big Brother.
But, God forbid the victim would speak out!
It truly sickens me that I spent my career trying to protect and serve my fellow Americans when
not only my government but these unworthy mercenary, sociopaths have stabbed me in the back.
Some of the stalkers have even been Iraqi War veteranssome of whom might not have returned
alive without my reports.
I cant think a lot about the lawsuit with each nocturnal assault leaving me wondering if I or one
of my family will not wake up tomorrow. Im sentenced to death for being a patriot. What a
country. I read Psalm 91 & 94 nightly, praying God will want to erase this growing evil from our
country. But, I also remember that Ruth Graham said a while ago, if God doesnt judge America,
Hell have to apologize to Sodom and Gomorrah.
Americans are just not the people they and we used to be and, therefore, our leaders are either
apathetic cowards who tolerate evil or potentially monsters like NSA Securitywho show that they
can be and are not responsible to anyone but themselves.
Is NSA Security even able to be reined in anymore? Or would any potential leader be found dead
of a microwave induced heart attack if he tried to? Someone ought to care but I may not be
around long enough to see it.
Sher: Thanks you so much for all youve done and I sincerely hope and pray youre wrong, Karen.
Its individuals like you who founded the United States of America on Godly principles and an
unwavering sense of ethics.
*Karen may be contacted for interviews at kams56@ME.com
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THE INVESTIGATIVE JOURNAL

StanJ. Caterbone
Freedom From Covert Harassment &
Surveillance,
1250Fremont Street
Lancaster, PA 17603
717-669-2163
Greg Szymanskis Interview

With Julianne McKinney
Microwave Harassment and Mind Control
Transcribed for Advanced Media Group,
05/28/16
This interview contains information from Julianne McKinneys book Microwave Harassment and Mind
Control Experimentation, 1992, as well as current conditions world-wide. Years of interviews turned
Gregg Szymanski from skeptic to believer in the secret world of electronic harassment, as harassment
against Julianne McKinney has turned potentially lethal. They are taking a stand to help TIs, Targeted
Individuals, many civilians, escape this cruel harassment.
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TRANSCRIPT OF GREG SZYMANSKIS INTERVIEW WITH JULIANNE MCKINNEY

ON MICROWAVE HARASSMENT AND MIND CONTROL
Published May 28, 2016
Greg Szymanski: (Also) I have a guest whos never given a radio interview before. Her name is
Julianne McKinney. For those of you who dont know who she is, she is an expert in electronic
harassment and surveillanceformer military background. And those of you who have followed
this story on my show, many may know who she is and the importance she has in this field.
Were just going to lay some very solid credibility to what weve been talking about. So this
interviews quite important and I want you to remember that, as we go along, shes a very, very
well-read person. Were gonna get to that in a minute. The problem on the use of electronic
weaponry on a person was when I was working in a law office. The law office I was working for
severaloh a number of years ago, the law office I worked for prided in taking cases that were
difficult. And I listened to a person tell me about the facts regarding the use of electronic
weaponry. And I had a discussion with somebody else at the law firm and we came to this
conclusion causation causation causation Greg, remember that element. Its going to be
awfully difficult to link whats happening to the person. The injuries they were alleging, to actually
the person, or the defendants, that were doing it.
So it was a case, Ill be very honest with you, that I was very skeptical over. But, as a journalist, I
started to interview a number of people, and I would like to say that this issue, after a number of
years, has come up to one of the top of my list as a problem in this country.
I talked to hundreds of people all around the country that are experiencing things that are just
unbelievable. And from a standpoint of the law, you want to get justice for these people. You hate
to see their lives destroyed, and you hate to see what happens, to a person thats been harassed.
But the biggest problem is its very difficult to pinpoint whats going on.
I have a guest today who is an expert in this field. You, the public, may not know who she is. But
those of you who have been targeted and listen to my show know very well. Shes never been
interviewed before and I feel honored that shes here. Her name is Julianne McKinney. Shes had
an extensive career in the US Army as an Area Intelligence Case Officer till 1990.
Upon her return to civilian life Julianne became a member of the Association of National Security
Alumni. That is an organization of former intelligence officers dedicated to exposing excesses by
the US Intelligence Services. Julianne became the director of the Electronic Surveillance Project
under their auspices as such she authored the publication Microwave Harassment and Mind
Control Experimentation in 1991. She kept that electronic surveillance project going for four
years, funding it with her own personal funds, obtained by her military benefits and pay.
Julianne did not copy write her work and it is out in the public domain for the public good.
Microwave Harassment and Mind Control Experimentation, the public has taken her hard copy
publication and uploaded it to several thousand domain sites over the past 15 years. It is
respected as one of the most important publications on this subject. And with that, Id like to say
hello, Ms. McKinney, how are you today?
Julianne McKinney: Please dont call me Ms. McKinney (laugh).
Greg: Okay, can I say Julianne?
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Julianne: Yes, Julianne.

Greg: Now, youre an expert in surveillance and electronic harassment. The first question I have
is that, in your observation, is there a wider scale of surveillance of average people, people with
no threat to national security, in your estimation?
Julianne: I would say that most of us targeted are not, and never have been, a threat. I think
that what happened initially, when these operations began probably 30 years, ago people were
singled out, perhaps, because of some affiliation, either direct or indirect, with the United States
government, and invited attention. But they were not singled out as being a threat; they were
singled out as being lucrative targets of experimentation.
In the past 15 years, since shutting down the Electronic Surveillance Project, primarily to seek
employment, which I did seek, and did obtain, I had occasion to observe many, many, many
instances of individuals in the corporate environment being singled out and targeted simply
because they were convenient targets of opportunity. And, I have to comment on something I
heard you say
Greg: Okay
Julianne:
claims.
Early on you referred to the difficulty of establishing causation in order to pursue these
Greg: That, I might add, that was made is a legal sense, based on the fact that we were nave
people, not really understand I have to be honest with youI had not understood the problem
back then, and felt it would be a difficult problem, based on the fact of how the crime was
committed and knowing how to pin that crime on someone. Go ahead.
Julianne: I understand the legal implications, certainly. There is enough literature, on the internet
and elsewhere, that establishes the existence of these weapon systems. To pinpoint, for purposes
of prosecution, to pinpoint their existence would be difficult and the position I take is that rather
than pinpoint for prosecution purposes, easy enough to single them out by electronic means to
destroy them. But I guess thats taking the matter a little far left field.
I think, frankly, we still face, until congress establishes laws that forbid the use of these
technologies for involuntary experimental purposes, that were going to get absolutely nowhere in
attempting to prosecute.
Greg: Okay, listen, I need to take a break Julianne. And well be back in three minutes on the
Investigative Journal.
Julianne: Okay.
Greg: Okay, back for the second half hour. My guest is Julianne McKinney. Shes an expert on
surveillance and electronic harassment. And Julianne, I gave you an introduction at the beginning
of the show.
Julianne: Yes
Greg: A brief introduction. But I think our listeners would like to know your background and why
youre qualified to make these statements. I think its important.
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Julianne: Okay.
Greg: If you could do that for us.
Julianne: Well, I would take exception to the term expert in these weapons systems.
Greg: Okay.
Julianne:
I certainly have had experience with them, having, for approximately the past 40
years, been on the receiving end of this type of harassment. Expertise in surveillance comes with
my employment in the intelligence field. I understand what constitutes surveillance and am
capable of immediately spotting the surveillance and I can see, as in the case of gang stalking, a
subject that you have addressed on prior occasions. I can see those who I label as covert want-tobes fumbling through what they think are covert activities and Id find it really rather amusing if it
werent so perverted in the ultimate objective.
Im not certain what more I can add. I do have experience with these weapon systems. Ive had
sufficient opportunity over these past many years to observe the progressive threat of these
harassment operations. And Im talking specifically about electronic weapon systems.
Greg: Well, youve been a voice - I mean a strong voice - for warning people of these systems for
at least the past 10 years regarding the installation of specialized electronic equipment and
utilities. What are these electronics and what are their capabilities?
Julianne: Their capabilities, generally, are to inflict pain in a highly focused fashion, and to alter
mental states. Certainly, when you have a frequency aimed at your brain, your mental functions
tend to alter. In amplified form, theyre sufficient, the frequencies are. They have the capacity to
kill. Though thats one reason the department of defense refers to them as less than lethal
rather than non-lethal weapons. As a matter of fact, the Department of Defense has gone so far
to eliminate them, to remove them from the category of even less than lethal weapons to bury
them in the category of electronic weapons trying to make them a little bit blacker.
Greg:
Now is this protocol of surveillance and harassment seemingly patterned after a
government protocol now applied to the general civilian population?
Julianne: Its difficult to pinpoint everything on the US government exclusively because these are
global operations.
Greg: Okay.
Julianne: The pattern the protocols, are virtually identical on a global scale so someone is
overseeing the entire activity. The government obviously is complicent because otherwise these
operations would not be allowed to exist. Why? Its hard to say. Whether its for testing electronic
weapon systems for future use under combat conditions or whether ultimately there's a holocaust.
(no-intelligible) Its hard to say.
Greg: Well, you know what I find interesting.how people who arent aware of this problem cant
believe its happening to begin with. And I try to mentionI have run stories about the Duplessis
Orphans. Its a program thats been verified, that the government actually used money in Canada
and the United States to do medical testing on children, on adults. Ive talked to people on the
POW issue, one Dr. Joe Douglas, who has documented how, that our government has done
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allowed foreign governments to do illegal experimentation on POWs. So why would people think
that they wouldnt allow it on just average citizens? Just in your mind. Do you have an answer for
people?
Julianne: Why wouldnt they allow it?
Greg: Yeah, my thing is that they do it, theyre doing it. But some people that deny it cant
believe that our government would do something like this.
Julianne: I find, even among the community of, I hate using slang terms, but the term TI is
common, referring to targeted individuals. Those are people who know they are on the receiving
end of electronic weapon systems. And even amongst TIs, there is a perception in certain areas
that our government wouldnt do this; a case of not recognizing reality. First of all if this were not
being done by our government, congress would step in because of the hundreds of complaints
they have received, thousands of complaints, no doubt, over the past 10-15 years, from citizens
who recognize whats going on. Congress, back in the early 90s, late 80s, took the position that
anyone complaining about these systems were imagining things because they simply didnt exist.
In two years, by 1992, they were off the drawing boards, and in fact, being fielded and conveyed
to law enforcement agencies.
Congress recognizes that these weapon systems exist and funds them, and knows, as a result of
appropriate briefings, what the bio-effects can be. Yet they have passed no legislation prohibiting
their use under unconstrained experimental circumstances.
Thats number 1. Number 2, given the nature, given the nature, given that the systems draw on
existing power grids, it would be necessary for the FCC at a minimum, and the Department of
Energy, as a minimum, give some oversight and control over what is going on. Though obviously,
those with Congress, the FDA and the Department of Energy, the FCC and the Department of
Energy are knowledgeable and yet unwilling to do anything about it. So, there is complicity, but
the question is, whos knitting, and submitting, the US government, allowing these operations to
take place?
Greg: Now from your experience, how intense is this surveillance of targeted individuals? And tell
us about the ways that the targeted that this is accomplished.
Julianne: From what I have observed, first of all I should explain that the standard that I address
this in Microwave Harassment and Mind Control Experimentation, it was a pattern that was
unfolding as I was dealing with other targeted individuals whothat contacted me. It was a
pattern of harassment which indicated that there had been some surveillance going on, some
monitoring of their private lives. There had been entry into their houses. There was systematic
harassment. And then, ultimately, as part of a softening up process, and then ultimately,
electronic harassment, which followed; which would include the inducement of auditory input,
which is now being referred to as Z2K.
In answer to your question (laugh) Im not certain if I I think Im probably missing the point
there, but in order to target someone, it requires that that person be put under surveillance, so
that their personality traits, their capacity to inter- relate with people, their capacity for corruption
or non-corruption, that seems to be a critical point. And even their religion factors into it.
Following a period of harassments, they are singled out for preliminary stages of harassment
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which includes gang stalking, entry of their private homes or apartments, followed by gradually
intensified and ultimately extremely intensified electronic harassment. This is the pattern that has
unfolder over and over and over.
Greg: And so, when you, I guess what Im getting atthats a very good answer. Youre seeing a
pattern amongst these individuals. I guessyeahis there any pattern about how they choose
them?
Julianne: I cant speak for men. But it appears that quite a few of the women who have been
singled out appear to be somewhat, too independent; perhaps too intelligent. Tend to live alone or
tend to pursue professional careers. Theres a heavy predominance of those types of women in
the TI community, the community of targeted individuals. Men are in a smaller proportion and
seem to be those who have a propensity to fly off the handle. Have a sense of self-esteem and
pride that seems to invite targeting. And I did mention a curious predominance of a certain lack of
religion amongst TIs, as opposed to a certain predominance of a particular religion amongst those
who are participating in these operations.
Greg: Now you mentioned this was a global problem. Have you communicated with people from
across the Atlantic regarding whats going on in other countries? Is it similar to here?
Julianne: Its virtually identical, virtually identical. When I was running the electronic surveillance
project I was in extensive correspondence with people overseas and patterns were the same. The
nature of the gang stalking and harassment were the same.
Greg: Now, when youre talking about specific numbers I know youreyouve been following this
for years and years and years. Is there any way that you can give our listeners a kind of an idea
of how wide spread this problem is in terms numbers in our country and compared to maybe
overseas?
Julianne: I would say that the person who has realized what is going on is just a drop in a bucket.
The persons whom I have seen being targeted are completely unaware of whats happening. So
those who are complaining of this are, as I said, the tip of the iceberg. I would say this is very,
very, widespread. But I cannot under the circumstances come up with any figures. Many, many,
many thousands, no doubt, are involved. But I would say that the bulk of them are running to
their doctors and taking totally unnecessary prescription drugs to cure ailments that dont exist.
Gregg: I guess that you have to ask this question even though its very difficult to answer. And
you mentioned, you said it earlier. But I really have to ask it because its on my mind and I know
its always in the back of everyones mind when they think of this problem. Why?? What is the
major reason, I mean, outside of just pure experimentation Im interested; for example, lets
say that they have targeted 100 people in Oklahoma. What do they, first of all, why are they
doing it? Is it for, basically, a blanket statement controlling the population? Orand, what do they
do with this information once they get it?
Julianne: I dont think they do anything with the information once they get it, other than to
establish a harassment protocol which will follow that targeted individual for the rest of his or her
life. Why are they doing it? I see a number of reasons. First, I dont know if youve done any
research on the phenomenon of capturing a percentage of the population in order to install a
dictatorship. There is always a percentage of the population, roughly 20% or so, that will buckle
and throw whatever constitutions might exist into the toilet and eagerly join the efforts at
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destroying the remainder of the population.

Part of the problem or part of the objective they are seeking obviously is testing the latest and
greatest in electronic weaponry and other forms of technologies. A part of it is to control and
choreograph those who are involved in these harassment operations on the dispensing end. And it
would appear that those being targeted are simply objects who I see as ultimately being
disposable. In other words, I think that once full control is established over a major percentage of
the population, and enough of the population is silenced and unwilling to stick their necks out,
that we inevitably would be heading toward a holocaust.
Greg: The question, if I was, for example, lets say we have a person, who suspects, and lets just
for hypothetical purposes, say this person is being targeted, okay? Now, tell our listeners, because
Ive always wondered this myself, okay. Im sitting in my house and I see around me theres
telephone poles, there may be a tower in the distance that I dont see that handles the cell
phones. Theres of course a grid of electric going on around me. Ive talked to people and I try to
say, how does this get into your house? And I wanted to get your opinion, if a person is targeted,
how basically are they beginning to intrude their premises, and violate their constitutional rights,
not only their rights ofnot only trespassing on their property? Go ahead. How would that
happen?
Julianne: Now, are you talking about, how would the frequencies impact upon them and how
would they first become aware of it? Or how would they first become aware of the fact that their
privacy has been violated?
Greg: Well no, I guess I didnt explain the question right. I wanted to know how they physically,
are doing it? I mean are they using a cell tower? Are they using a truck thats in the distance?
How is this being transmitted into the home to target the person and to use this weaponry on
them, from your experience?
Julianne: Well, first of all, in order to target a person you have to be able to see that person. And
while they may not be able to, they may, on entering the house, plant miniature cameras,
miniature microphones, as a means of, for their monitoring a person. But that is not necessarily
the means by which they hone in on a person. There are plenty of technologies that allow for the
imaging of a person that might be sitting in a chair, as you mentioned you might be.
Using infrared imagery techniques, for example, they can capture your image by monitoring the
concentration of heat emanating from your body using certain acoustical frequencies, they can
detect mass. And using sophisticated computer software, they can convert those images to
likenesses on computers, which conceivably could be used in a software program that could be
connected to an electronic weapon system. And in that context I should point out that, while
devices draw on the existing power grid, and while theyyes indeed, they do involve microwave
towers
Sounds like youve got a commercial coming on
Greg: Yes we do, and thank you for making my job easier. Well be back in 3 minutes on the
Investigative Journal.
First, Ive put this in the top 3 of my stories that I believe are important, that the American people
need to deal with, because as Ms. McKinney, who is a, I consider her an expert. She would only
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say shes an authority. But let me tell you, Julianne, you are an expert in this. The reasons could
be, like she said at thebefore we went into the break, and a total testing of our population to
see, basically, perhaps maybe there is a holocaust in the future or a dictatorship in the future. And
they want to see how people react to it. That may be a simplistic way to look at it. Not a simplistic
way that Julianne looked at it but my way of explaining it.
But lets get back to some of the things here, the last few minutes that are important. What can
you tell us, Julianne, about the microwave energy on citizens in terms of the existence of such a
program and the nuts and bolts of what they do?
Julianne: Microwave energy is only one aspect of the entire electromagnetic frequency spectrum.
Microwaves can be lethal depending upon how theyre used. Obviously in order to achieve
appropriate effects on people, they have to be pulsed, because otherwise the individual would be
cooked from the inside out. The objective of using microwaves as opposed to other
electromagnetic frequencies would be to inflict extremes of pain to cause thermal heating. Thats
a common complaint which leaves a hot spot on the scull. Again, primarily, just to inflict extremes
of pain. I was just wondering, we kind of skipped over or didnt quite complete a preceding topic.
Greg: Oh, go ahead, go ahead. Youve got free reign.
Julianne: You were talking about the use of the electrical grid throughout the country, the use of
microwave towers, the use of devices affixed to poles that are connected to power lines. But what
wasnt addressed, what you havent mentioned, is also that these weapon systems are used by
neighbors surrounding persons who have been singled out as targets of opportunity.
Greg: Are they solicited to do this or what?
Julianne: Thats something that Ive been pondering for some time. Again, what Ive noticed is,
there seems to be a predominant, particular religion that makes it particularly easy for them to
cooperate.
Greg: Well listen, lets talk about that after the break, a short break, and then Ive got something
to, some business I have to take care of for 3 4 minutes. Then well get back for our 2 nd hour
with Julianne McKinney. Well take some calls. Back in 2 minutes on the Investigative Journal.
(In this section there seemed to be jumping around, like maybe the video was edited or there was
some problem with the recording.)
by some of the Tis and thats Targeted Individuals.
That song rose to number one without any publicity on the internet. And that song called TI,
well play that again Dr. McKinney. I think it hits the nail on the head. I mean theres a lot of
people out there suffering. And I know youre one person, an authority in this field. And for my
guests who are just picking us up this hour, Dror excuse me, Julianne McKinney is a very highly
regarded person in the field of electronic weaponry, and surveillance in studying this issue. Shes a
former area Intelligence Case Officer until 1990 in the Army. And her credentials can be found, will
be found, you can go to RBNLive.com and go to my archives in the Investigative Journal and read
about that. Shes well qualified. Shes still with us this hour. And Dror excuse me, I keep calling
you Dr. and you should be.
Julianne: (Laugh) Im not a Dr., thank you. Dr. Americus.
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Greg: Dr. Americus. You know, thats funny. I have a doctorate in law. And nobody ever calls me
that and I hate being called that, a doctor. But Im interviewed on a Tehran TV station once every
blue moon, couple months, and they refer to me as Dr. Szymanski. And its nice to hear once in a
while. Ill be honest with you. Every two months is good enough. Otherwise they just call me the
jerk on the radio, which is better.
But, lets go from here. Youre adding such credibility to this story, adding credibility in my mind as
I speak. Because, Ive talked to hundreds of these people and was a doubting Thomas in the
beginning. I must mention that. I did not think it existed, and that was years ago. I thought
people were either insane, or crazy, or trying to get attention. But you know something? I will
admit I was totally wrong with that initialI guessthe look at the situation and have come
around to fully believe in most of the people I talk to and really sympathize with their suffering as
I see their lives being ripped apart.
Are there any things you can dowere going to get into a few more things here as far as the
technical aspects of this but what can targeted individuals do to get some peace in their life? I
mean thats one thing theyre looking for. Is there anything they can do?
Julianne: (prolonged silence)
Greg: Difficult question there.
Julianne: Its very difficult to advise targeted individuals how to acquire peace. These frequencies
can be blocked or deflected. All of these frequencies I have found, some may contest this, but I
have found can beare vulnerable, and are subject to deflection. And the pain can be immediately
(word unclear), if not halted all together. Finding peace by writing to members of congress or to
state legislators might not be a better alternative because you will be treated as something worthy
of the circular basket. They just wont intervene. Writing to the various agencies and calling a
meeting with them serves no useful purpose either because they will say there are no laws
prohibiting these types of activities. They cant, say for example, the FBIand I was given this
statement on a number of occasions.there are no laws prohibiting experimentation with these
weapon systems. Youre talking to the wrong people.
So my advice would be to do what you can to secure your premises, because so long as your
house is or apartment is being entered, you are susceptible to, in addition to being targeted by
electronic weapons, there is a potential for having drugs put in your food. And Im not
exaggerating there.
Greg: I had a few targeted individuals I talked to send me some questions that Id like to ask
you.
Julianne: Certainly.
Greg: And the one was Are targeted individuals also broadcast around the country via closed
circuit TV? And, What purpose does this serve? Im fully in the dark on this question, but, go
ahead.
Julianne: Okay. I have seen evidence of a closed circuit TV and it seems to be some form of
major source of entertainment and perhaps instruction for the individuals participating in this
harassment. I dont know who runs it. I have seen aspects of that on a large screen TV across the
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street on which I saw surveillance films of a TI being harassed, obviously, in an office

environment. Gang stalked. Shows brain scans and is otherwise a very sophisticated, sleek,
communications operation. Why would it be used? As I said either for entertainment, for
creating a sense of unity, or for identifying persons, TIs, who are to be harassed on the street. I
mean, obviously you cant harass someone if you dont know what that person looks like. So its a
means of communicating to the perpetrators, perps, what the TI looks like.
Greg: Okay, now, before I get to some more, I want to put out that call for people to call. I got a
couple emails. A lot of times Tis dont want to go public. And theyve sent me some emails. I want
to get to one in a minute. But one question I have for you is, how can people gather evidence to
support their beliefs that this is happening to them? Many people will say, well its only a lack of
sleep. I mean, you have a sleep disorder. Maybe theres a problem with your joints, I dont know.
It could be anything that the answers are when you suspect youre being targeted. What kind of
evidence do you tell people to gather to support their beliefs that this is actually happening to
them.
Julianne: Well, when youre gathering evidence, obviously you have an objective in mind and that
generally is legal. What you want to do with that evidence. Theres really nothing you can do with
it. So in the absence of that, the main thing is to try to protect yourself and to alleviate the pain
that youre experiencing. Collecting the evidence, if you were to go to, frankly, Id strongly
recommend that you keep your faculties together and avoid going to see psychiatrists and
psychologists, because the pattern that is evolving is that they are highly complicit of these
operations.
And if you go to a medical doctor, you do not talk about it because medical doctors, many, are
also involved. What you do when you see a doctor is that you define your symptoms and get a
very clear statement that, well, we cant figure this out. Well, thats a clear indication that it is
not indigenous, its not part of your system. Its not coming from within you, so obviously
something is happening from outside. If they prescribe drugs and yet cant find the ecology, the
basis for your disease, dont take those drugs.
Greg: Now earlier we were talking about the fact that they may, whoevers doing this, youve
delineated, youve led a good course into whatyoure tracking these people. But what I was
getting at, we never got to the point where ifyou mentioned something about a religious group
that may be targeted. What did you mean by that?
Julianne: The way I dont.well let me put it this way. Im not out to start a religious war. I have
found over the years that the persons involved, both in gang stalking.Ive made it a point to get
to know these people. Ive had to necessarily. Im not the type to
Greg: Youre talking about the perpetrators or the targets?
Julianne: The perpetrators.
Greg: Okay
Julianne: As well as theIve been drawing distinctions. And what Ive found is that the
perpetrators appear to belong predominantly to one particular religion; whereas the targeted
individuals do not belong predominantly to that particular religion.
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Greg: And what is the particular religion of the perpetrators?

Julianne: Right. So, at this stage, again, Im not particularly enthused about the idea of starting a
religious war. And I have challenged other TIs to get out there and become acquainted with, and
get to know, the people who are harassing them, to draw those distinctions themselves, because
Im not going to be making brash claims. This is something Ive observed over the past 10 years.
Greg: Thats fair enough. And maybe, perhaps, I could talk to you about it just for my own
knowledge off the air.
Julianne: That would be fine.
Greg: And I will keep your name out of it at that point and let people know what the targeted
group may be and what the other group may be.
Julianne: There is a religious influence but thats not to say these people arent just being used as
puppets by some broader interest.
Greg: Very good point. Can you stick with us one more segment of 5 minutes?
Julianne: Okay.
Greg: Were interviewing Julianne McKinney, our last segment. Juliannes an authority in the use
of surveillance and electronic weaponry. And this is an email question, kind of a technical one from
a TI. Let me read this to you. Perhaps you can answer it. Are the protocols for each individual
modified based to custom tailor it for the specific targeted individual? And if so, how does this
process work?
Julianne: Yes indeed they are modified. There is a basic protocol that the perpetrators begin with.
But the TI contributes to the modification. A good example of that would be, if someone. Im
trying to think of a good example. If the TI feels the need to cooperate, even in the most subtle
fashion, with the persons who are harassing him or her, he or she will modify his behavior, in
pathlobean condition, which alters the protocol. Theyre constantly, targets are constantly
monitored, and if they respond emotionally to a particular trigger, that will be built into the
protocol. If the target displays a certain sense of guilt or embarrassment about a subject, that will
be built into the protocol. Its an ongoing process. And one thing I want to emphasize is no TI
should look for a reason as to why this is going on. Its a serious, serious mistake. I know I did
that myself when they started on me and over the years I came up with probably 6 different
excuses.
Greg: Is it still going on with you?
Julianne: Oh yes. Not to the degree that it was before but certainly in very lethal form.
Greg: Now, how has this hampered your life?
Julianne: Its come close to being lethal on a number of occasions. I deal, I dealt with gang
stalking head on and I essentially put that to rest. I deal with.Ive developed a means for
communicating with perps directly and made them feel like the trailer trash that they are. So gang
stalking is not one of their favorite activities in my case. So the primary activity now is to see
what I can survive in the way of an induced brain aneurism or stroke or a heart attack.
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Greg: I just had a caller who doesnt want to get on the air but wants to know, does moving help;
moving your location?
Julianne: Running, if youre talking about moving to a completely new location, no. This country
is wired to the hilt for immediate transfer. Your protocol follows you wherever you go so its a
waste of time. Moving about physically in place will not change anything. Other than, if you make
a 180 degree turn you will notice the targeting will suddenly stop because the weapon systems
are programmed to focus on a particular area of your anatomy. So if you turn, the targeting will
suddenly end. If you turn back itll hit you again.
Greg: Interesting. Now, going full circle in the last 2 minutes here, in 1991 you published
Microwave Harassment and Mind Control Experimentation. This has been passed around the
internet and over thousands of domain sites over the past 15 years. Can you tell us how someone
can get ahold of this publication to be informed?
Julianne: Its not copy-writed. All they need to do is plug in my last name, McKinney, and type in
the title Microwave Harassment and Mind Control Experimentation and innumerable sites will
appear and just read it from there. It will give you a good insight into what the pattern is when
harassment begins.
Greg: Now, let me just spell your name for people that are going to do that. Thats MCKINNEY
McKinney. And then its Microwave Harassment and Mind Control Experimentation for an authority
in the field.
I guess since 1981, have you seen.I guess a question I wanted to ask, from 2001, have you
seen any, from the time of 911, has there been an increase in the last 4or 5 years, with this type
of, that youve seen, in the number of people contacting you. Has it been more wide spread since
911?
Julianne: Not since 911. WhenI would say back in the early 90s Ive seen a tremendous
expansion of these activities since the early 1990s. And it has moved forward in consistent
fashion. Its become ever more sophisticated and ever more wide spread. There was no sudden
burst or flurry of activity since 911.
Greg: And you have no help whatsoever with the political arena in this. Correct? Politicians will
not touch this with a 10 foot pole?
Julianne: Thats right. And even those who purport to be liberally inclined, and Im speaking
about members of the democratic party, will not touch it, because quote unquote, and they know,
they know whats going on. They dont they simply dont have the funds to be able to pursue it.
All sorts of humma humma excuses will be furnished for not pursuing something like this. Before
you close.I hear the music in the background.
Greg: We can stay another minute if you want.
Julianne: Okay.
Greg: Why dont you come back for 2 minutes on the other side of the break and then well finish
up. Okay?
Julianne: Okay.
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Greg: Okay, back with Julianne McKinney and 3 minutes on the Investigative Journal. You wanted
to say something at the break.
Julianne: I did. I want to thank you very, very much for taking on this subject. There are so few
in the media, as a matter of fact, youre the only one I know of, who has the guts to address it.
Greg: And you know, it really doesnt just in defense of every other media person. I dont think
its guts, in a sense, maybe it is. I dont consider myself having guts in this issue. I consider it to
be an issue that you need to take time to understand it. And thats what I would recommend to
the people in the media that havent touched this issue. If it isnt being down right censored by
someone above you, at least take the time to talk, Ill spend time talking to you about it. Because
it took me a little time to figure it out. And, Ill tell you what, its people like you that need to be
applauded because its your efforts that are bringing this to the forefront. Youre laying the
credibility on the line. But I thank you anyway for your kind words.
And with that, I wanted to say goodbye to you. And were going to have to move on. And well
have you on again to talk about this. And thank you so much.
Julianne: And thank you so much.
Greg: And that was Julianne McKinney. And she is an authority in the use of electronic weaponry
and microwave weaponry and she was with us for the last hour and a half.
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Dr. Nick Begich Author and Expert Researcher

of Electromagnetic Weapons
Biography
Dr. Nick Begich is the eldest son of the late United States
Congressman from Alaska, Nick Begich Sr., and political activist Pegge
Begich. He is well known in Alaska for his own political activities. He
was twice elected President of both the Alaska Federation of Teachers
and the Anchorage Council of Education. He has been pursuing
independent research in the sciences and politics for most of his adult
life. Begich received Doctor of Medicine (Medicina Alternitiva), honoris
causa, for independent work in health and political science, from The
Open International University for Complementary Medicines, Colombo,
Sri Lanka, in November 1994.
He co-authored with Jeane
Manning the book Angels Don't Play This HAARP;
Advances in Tesla Technology. Begich has also
authored Earth Rising - The Revolution: Toward a
Thousand Years of Peace and and his latest book Earth
Rising II- The Betrayal of Science, Society and the
Soul both with the late James Roderick. His latest
work is Controlling the Human Mind - The Technologies
of Political Control or Tools for Peak Performance.
Begich has published articles in science, politics and
education and is a well known lecturer, having
presented throughout the United States and in
nineteen countries. He has been featured as a guest on thousands of radio broadcasts reporting
on his research activities including new technologies, health and earth science related issues. He
has also appeared on dozens of television documentaries and other programs throughout the
world including BBC-TV, CBC-TV, TeleMundo, and others.
Begich has served as an expert witness and speaker before the European Parliament. He has
spoken on various issues for groups representing citizen concerns, statesmen and elected officials,
scientists and others. He is the publisher and co-owner of Earthpulse Press. He served as Tribal
Administrator/Village Planner for the Chickaloon Village Council, a federally recognized American
Indian Tribe of the Athabascan Indian Nation for five years and served four years as the Executive
Director of The Lay Institute of Technology, Inc. a Texas non-profit corporation. Currently Begich
consults for tribal organizations, private corporations and others in a number of research areas.
Dr. Begich is a single person with five adult children, and four grandchildren.
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Covert Harassment Conference

1-2 October 2015, Berlin, Germany
2
3
Mind Control:
4
5
DR. NICK BEGICH

A Brave New World together with HAARP The Update
DR. BEGICH:
Hello, and thank you for being
here and thank you to Peter and the rest of the team for
putting this together.
8
9
Everyone hears me okay, yes?

Okay.
In the back?
Good.
10
All right.
I want to give a little bit of
11
background in terms of my interest in these areas.
12
those that don't know my family story, it really goes
13
back quite a ways.
14
For
My father was in the United States Congress in
15
the early 1970s during the Nixon Administration.
16
lost in a plane with Hale Boggs.
17
remember this if you've got a little bit of gray hair.
18
Hale Boggs was our House majority leader at the time,
19
one of the most powerful people in the United States
20
Congress.
21
strong dislike for J. Edgar Hoover, because he basically
22
read everybody's mail, tapped everybody's phones,
23
including the United States Congress, and then,
24
essentially, blackmailed political leaders to follow
25
whatever script he laid out.
Some of you may
He was also a Warren Commissioner.
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He was
He had a
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Boggs was a pretty outspoken individual.
At
the time -- it was just before the second election of
Richard Nixon -- Boggs came to Alaska to work on my
father's campaign, which would have been his second term
in the United States Congress.
Boggs, before they flew out on October 16th,
three weeks before the second election of Richard Nixon,
began to talk about this scandal brewing in Washington,
DC.
In fact, that very scandal, had it unfolded a
10
little bit differently -- for those that remember, the
11
planes disappeared.
12
Three weeks later, Nixon's elected for his
13
second term.
14
the Watergate scandal broke.
15
office.
16
moved up again.
17
Rockefeller then slid into the Vice President's slot.
18
And then one of the old Manson women from the Charles
19
Manson days tried to assassinate Ford, which would have
20
put Rockefeller in the White House.
21
It wasn't too much long after that that
Ford moved up.
Agnew was thrown out of
Then Nixon resigned.
Ford
For those that don't remember,
What would have otherwise happened, most
22
likely, the election would have taken place.
23
would have won.
24
out at the same time.
25
controlled the Congress.
Nixon
Agnew and Nixon would have been thrown
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The Democrats would have

The Speaker of the House would
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have elevated to the Presidency.
have been in control.
happened and history tells us a lot about what really
happened there.
The Democrats would
But the opposite, of course,
Twenty years later there was a report, an
investigative report by a publication called "Roll Call"
in Washington, DC.
these various Congressional deaths.
crashes are kind of the hazard of political leadership,
10
11
That report was looking into all of

You know, plane
it seems like.
But in researching that, what they found in the
12
FBI files were a couple of telexes -- this goes before
13
FAX machines -- and telexes coming from California into
14
Washington, DC reported that two people had been found
15
at a crash site.
16
the FBI to determine whether they were credible.
17
follow-up telex came through saying, yes, they were.
18
That plane was never recovered.
19
officially; yet 20 years later, we find out, in fact,
20
there were.
21
Those sources were later looked at by

A
There were no survivors
So I know about conspiracies.
Conspiracies are
22
conversations that happen in a room like this when
23
there's a bunch of people standing on the outside who
24
might not agree with us.
25
the political life, even at the highest levels, things
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But the reality is, even in
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happen.
Maybe a few decades go by before the truth is finally
revealed.
Things happen that aren't easily explained.
So I have a strong motivation foundationally in
terms of how I approach controversial issues.
do it with fear.
years.
is the absolute adversary for getting anything
accomplished on this planet.
10
I don't
I've been doing this work for over 20
Fear isn't part of the equation.
In fact, that
My interest in these areas started with HAARP.
11
And how many in this room do not know anything about
12
HAARP?
13
Okay.
Well, that's a lot better than it used
14
to be.
15
Twenty years of this work and the work of others have
16
kind of brought this into the public.
17
All right.
It used to be the other way around.
So the first image -- I'm going to use HAARP as
18
sort of the backdrop as I move into the mind control,
19
mind effects-related technology.
20
in my part of the world.
21
know if -- maybe I've come the farthest for this
22
presentation.
23
appreciate the opportunity to inform people about this
24
subject.
25
This is just an image
I come from Alaska.
I don't
But I appreciate being here and I
So HAARP is a large array, a field of antennas
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in Alaska, currently 180 antennas.
They're
approximately 20 meters tall.
which you can see, which is the very top of these
antennas.
concentrate radiofrequency energy into a relatively
small space.
They have a cross dipole,
And what these are designed to do is focus or
If you think about the energy of a flashlight,
for instance, or a torch, as they say here in Europe, I
shine that against the wall, the beam starts out small,
10
and then it broadens as you get further away from the
11
source.
12
The same is true with radiofrequency energy.
13
You can think about it as an inverted funnel starting
14
here at the transmitter and then spreading out and
15
getting thinner and thinner, less dense, which is why
16
the further you get away from radio broadcast antennas,
17
the weaker and weaker the signal.
18
With HAARP, the opposite occurs.
They have
19
figured out a way through what's called cyclotron
20
resonance, which would be focusing or concentrating the
21
energy.
22
like sort of a cork-screwing kind of motion that got
23
smaller and smaller as you move further and further away
24
from the transmitter.
25
So if you could visualize it, it would look
So it concentrates that energy or focuses that
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energy so you can manipulate it in various ways.
the HAARP array, which was originally designed by a
gentleman, Bernard Eastlund, who's now deceased, was
intended to do a number of things as a weapons
application.
half the current size of the transmitter in Alaska.
can see the field of antennas.
90 antennas in the array.
9
10
11
This is the earlier version when it was

You
In this case there were
And here's another image as they expanded the

array to 180.
And another image showing the array.
Now, they also upgraded the technology pretty
12
substantially over the years.
13
efficient.
14
much bigger effects.
15
And so
So it became much more
So with a much smaller system you create
So what does it do?
Essentially, it's sending
16
energy or focusing energy up into an area known as the
17
ionosphere, which in this image in miles -- I apologize
18
for that -- is approximately 37 miles to 620 miles out
19
into space.
20
Now, this is a highly energized area.
If you
21
think about radiofrequency signals or shortwave signals,
22
they would come from the earth, they'd bounce off of us,
23
and then bounce back down to the earth to transmit over
24
large distances.
25
The ionosphere also is an area that can be
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disturbed by solar radiation, radiation from the sun.
When it becomes destabilized, it interferes with
terrestrial communications of every kind.
So part of the idea in this technology was to
learn how to stabilize the ionosphere during these
periods or deliberately disrupt the ionosphere to
interfere with communications on a global basis.
8
9
Now, what caught my interest when I first

looked at this issue of HAARP was a very short article
10
in a publication, an Australian publication, that talked
11
about this big system in Alaska.
12
Now, I come from a family that's pretty
13
politically engaged.
14
Congress, my younger brother just finished a term in the
15
United States Senate.
16
politics a very long time.
17
Besides my dad being in the
My family's been involved in
Alaska is a very big region, but we're a really
18
small population; 700,000 people in our entire region.
19
And when you think about big projects, you know, you
20
think you know something about them.
21
Well, I'm reading about this project in my
22
state in a journal in Australia and I'm going, you know,
23
why doesn't anybody know about this?
24
25
And so I decided I would go in and look into

this issue independently.
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And I did.
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I picked up maybe
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30 articles and papers, design specifications, some
things, and with friends encouraging me to publish, I
published the first article that I had written on HAARP
back in 1994.
So it's been a very long time ago.
What also caught my interest was the idea that
they were primarily utilizing, in some applications,
extremely low frequency signals or ELFs.
signals that can be biologically active, can affect us
as human beings and in very specific ways.
10
These are
And in particular, certain applications of the
11
technology -- and this gives you sort of a graphic
12
illustration of the focus.
13
were given to me by the inventor, Bernard Eastlund,
14
prior to his passing.
15
publications and in some of our work.
16
kind of a graphic showing the radiofrequency from the
17
array, moving up into the ionosphere and focusing that
18
energy.
19
These view graphs, actually,
And we utilized them in our

So this gives you
His initial concept was to create a global
20
shield, to be able to utilize the natural magnetic field
21
lines that surround the earth, be able to punch energy
22
into this and then create this kind of global shielding
23
effect.
24
piercing that energy would be disrupted, like
25
satellites, intercontinental ballistic missiles,
And the idea was that any electronic device
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virtually any electronic device that ran into this field
of energy that was being amplified would be destroyed.
Now, one of the other interesting parts of
this -- and this kind of shows that, again, utilizing
one of Eastlund's graphics.
line and then you see this cork-screwing energy going
around it.
southern polar regions into the northern polar regions.
And, in this case, they actually couple -- actually
10
utilize the energy on the ground to couple with the
11
natural energy, and then coming from the north to the
12
south, create this cork-screwing effect, which
13
accelerates the electrons and then creates this global
14
shield.
15
So you can see like a field
That energy naturally is occurring from the
Now, that was his initial concept.
And as a
16
concept, it caught the attention of a number of people
17
and eventually got funding from the Congress, initially
18
at 30 million, and over the last few decades now over
19
almost 300 million, which in dollars is not a lot of
20
money, but when you consider, this is sort of the
21
pinnacle of billions of dollars spent in ionosphere
22
research over many decades.
23
What caught my attention in terms of the
24
technology of Eastlund -- I'm going to skip some of
25
these that are not so relevant -- was the idea that you
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could manipulate the ionosphere -- and I'll use this as
a better example.
you could punch or pulse energy into the ionosphere --
so think about this energy going up and, like, a hammer
ringing a bell.
ionosphere itself vibrates and then it begins to send a
signal in the ELF range.
signal going up, punching the ionosphere, the ionosphere
which is energized then acts as a broadcast antenna in
So one of the thoughts was that if
Every time it hits that ionosphere, the
So you have a high frequency
10
the sky bringing back an ELF signal to the earth, and in
11
this case covering an entire hemisphere.
12
Now, ELF signals, extremely low frequency
13
signals, are very long wavelengths.
14
earth and sea.
15
submarines, as an example, the depth, because short
16
wavelengths won't penetrate the earth and sea.
17
also used for what's called earth-penetrating
18
tomography, which in simple language or by analogy would
19
be like x-raying the earth or looking into the earth for
20
underground structures.
21
They penetrate the
They're utilized for communication with
They're
But one of the side effects of ELF is the
22
entrainment effect on the human mind.
23
signals will lock onto in what's called a frequency
24
following response.
25
techniques to create a frequency following response.
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Because ELF
And you can use a lot of different
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You can use flickering light, you can use binaural beat,
which I'll explain in a few minutes.
electromagnetic fields such as this, or even the power
grid itself can be modulated in such a way to create a
signal that the human body will join with, will couple
with, and begin to follow.
of energy to accomplish this.
You can use
It doesn't take a great deal
This is the one that triggered my real interest
in HAARP, because this is the one that everybody kind of
10
ignored and said, oh.
11
well, if ELF has a biological effect, it's a side
12
effect.
13
phrase earlier today.
14
believe that it's an intended consequence.
15
intended to grade populations in very specific ways.
16
In fact, the HAARP planners said,
It's an unintended consequence.
We heard that
But I don't believe that.
It's
Now, this book was mentioned by my friend
17
earlier today, "Between Two Ages", by Zbigniew
18
Brzezinski.
19
written, actually, in 1973, when Brzezinski was at
20
Columbia University.
21
Security Adviser to President Carter.
22
the time that Kissinger and he and others were starting
23
to think about the Trilateral Commission organizing this
24
think tank, so to speak.
25
And why this is an important book, it was
This is before he became National
Now, find this book.
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This is around
I really encourage you to
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12
find this book and read it, because it is not a
prediction of what will come with technology.
blueprint, in fact.
It's the
You can read this.
When I first read it -- he writes in a pretty
convoluted style.
English to understand.
read it because he predicted the economic changes that
took place, the political changes that took place in the
world over the last 40 years with a great deal of
10
accuracy.
11
prediction.
12
It's a little difficult even in

But I really encourage you to
And some will say it really wasn't the

It was the plan.
If you look within this text between Pages 54
13
and 56, you'll see a section that's dedicated to the
14
kind of technologies we're talking about today, a mind
15
control technology.
16
guy named J. F. Gordon MacDonald.
17
geophysicist at UCL.
18
chapter in a book and the chapter was called, "How to
19
Wreck Your Environment", which this is before Earth Day,
20
okay, so he could get away with that.
21
that book was actually published.
22
caught Zbigniew Brzezinski's attention was, he said, if
23
we could ever figure out how to electronically stroke
24
the ionosphere in just the right way, we could return a
25
signal to the earth that would influence the behavior of
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And what Zbigniew referenced was a

And he was a
He wrote a book -- or, actually, a
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It was 1969 when
But what he said that
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people over huge geographic areas.
Now, that's a pretty profound thing.
But we
didn't have a way to stroke the ionosphere in 1969.
we did by the 1990s.
fact, the HAARP system that can accomplish this.
But
And that was, in fact, and is, in
So the idea was -- and it was kind of, in a
gross sort of way, primitive, if you will, but what the
intention was, was that if you could pulse the
ionosphere, return this ELF signal to the earth, you
10
could agitate the population in very specific ways.
11
could make them passive, less aggressive, or the
12
opposite by just amplifying that signal.
13
explain a little bit of that as we go on.
You
And I'll
14
The other person that comes out in the last
15
presentations, Jose Delgado, and this book he wrote,
16
"Physical Control of the Mind:
17
Society".
18
images that you saw in just this short video clip of
19
Delgado's work, there is a good section in this text as
20
well showing that.
21
Toward a Psychocivilized
And this is, again, a 1960s book.
But in those days they used implants.
Those
They had
22
to physically put something in the brain.
23
Delgado originally did -- he was actually educated in
24
electrophysiology at the University of Madrid.
25
graduated in 1950.
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And what Jose
He
Electrophysiology, as a degree
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field, thinking about it in 1950, now 65 years ago, most
people don't even realize that's an area of higher
education today, much less that far back.
One of my mentors, Raul Makayla (phonetic), he
actually graduated University of Madrid in 1958, and his
area of interest was, essentially, the same, biomagnetic
and electric fields, effects on human physiology, and he
spent his career studying that.
Delgado, at Yale University, he initially was
10
mapping the brain of primates and humans by stimulating
11
various portions of the brain to figure out what was
12
responsible for what kind of activity.
13
began to utilize the implants in those dramatic ways in
14
those film clips with the charging bull and he throws
15
the switch and the bull stops, to demonstrate that you
16
could take a creature from passive to highly aggressive
17
to passive to highly aggressive, just like flipping on
18
and off the lights in your living room.
19
And then he
What Delgado discovered by the mid-'80s is that
20
you didn't need any implants.
You just needed to
21
manipulate the energy itself.
And you didn't need a
22
great deal of energy.
23
Now, we've heard -- I forget the amount of
24
energy surrounding us now.
25
believe it was 18 zeros after the one that we heard
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Was it a quintillion?
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earlier.
radiofrequency energy alone, it was 200 million times
more around us every day than nature created in 1994.
Back when I wrote the HAARP book in '94, just
Now, when you think about it, what did Delgado
discover?
of energy in the natural background noise of the earth
was sufficient to manipulate the behavior of human
beings if you could hit the right frequencies, if you
could hit those window frequencies that stimulated that
10
11
He discovered that one-fiftieth of the amount
kind of activity.
Now, if you think about this -- again, by
12
analogy, think about dialing through the radio stations
13
on a radio.
14
noise, the static, you get no clear signal.
15
you have resonance between the transmitter and the
16
receiver, then you get a nice, clear signal.
17
The same is true in our physiology.
18
you're looking at stimulating or affecting a specific
19
element in the body, molecules in the body, cell
20
structures or organ structures or even the human mind,
21
it's about manipulating the underlying energy.
22
In between the stations you get the white

But when
Whether
When you think about medical science in terms
23
of how the fork in the road is and how this kind of
24
applies to why don't we know more about this today,
25
well, there's lots of literature now.
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25,000 sources, I
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think we heard quoted earlier today.
25,000 sources
talking about the energy interactions with the human
body.
That is a lot of information.
But what happened in medical science?
A lot of
people that went into life sciences, they were really
good in the chemistry, a little weak in the math, so
they went to life sciences.
better in the math, they went to physics.
upon a time, these two came together and we got
People who were a little

And then once
10
biophysics, which is really the root of real health
11
science.
12
you've got to get to the energetic interactions that
13
create chemical reactions that then manifest in the
14
body.
15
If you really want to get to the meat of it,
And that's what we kind of miss in so much of
16
our medicine.
17
opposed to an electromagnetic model.
18
to World War II, that fork in the road was being
19
explored pretty aggressively, the energetic models.
20
they were somehow lost in that shuffle and we ended up
21
with the pharmaceutical industry, and the results of
22
that, I think we can all not be quite so proud of.
23
We followed a pharmaceutical model as

In the '30s, prior
But
In terms of where the technology is going and
24
where a lot of the science is going, it will be
25
electromedicine that cures most of what we call
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incurable.
debilitates human consciousness itself.
It will also be that which enhances or
Now, Jose Delgado, when he figured out that you
didn't need implants, you just need to manipulate the
energy itself, this became kind of the essence of sort
of where everything went from there.
But I want to roll back a little bit, a little
bit back in time, and talk more about the evolution of
mind control as technology starting with the work at
10
Harvard University of a gentleman, Estabrook, who was
11
working in the Harvard hypnotherapy labs in the 1920s.
12
You can look Estabrook up.
13
of Congress and you'll see his list of publications, and
14
I recommend that you do that.
15
Look him up at the Library
What he decided was that you could create what
16
we would call today a Manchurian candidate.
17
take certain individuals, put them in a very, very deep
18
state of hypnosis and then over a period of time train
19
them so they would be like this super spy that you could
20
send into another country and they'd hang out for a year
21
or two, but if they got captured, they wouldn't really
22
remember any of their former self, and then when they
23
came back, in this case, into the United States, that we
24
would then give them the appropriate suggestions and
25
then extract the intelligence from them.
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You could
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18
And this is what Estabrook was working on.
By
the 1930s, a lot of his work was being classified and he
continued to work in this field up through the 1960s.
His last book -- and I always like to read the last
thing someone writes, you know, because it tells you a
lot about, sort of, the conclusions and there are things
that you might discard bits and pieces as science
enlightens you and your experience enlightens you.
what he talked about in that last book were the
10
experiments he was involved in using LSD and other
11
hallucinogenics in mind control, which he actually
12
talked about in a favorable sense.
13
And
And for those of you that remember, the CIA was
14
heavily involved in this in the 1960s and, in fact, the
15
whole area pre-1960s going back even to the Korean War,
16
which is sort of my next mark on the timeline.
17
The Korean War, we had prisoners, patriotic
18
young Americans come back from war and they're handing
19
out Communist leaflets on street corners, and the term
20
or the phrase brainwashing came into being.
21
where it came from.
22
after the Korean War.
23
That's
It came from that series of events
The idea of being able to manipulate people's
24
behavior and change them so profoundly became of
25
interest to the predecessor of the Central Intelligence
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Agency and then later the Central Intelligence Agency.
And what they looked at were lots of different ways to
manipulate human behavior.
Now, when I was researching my first book with
Jeane Manning, "Angels Don't Play This HAARP", I was
looking for a good source document that would speak to
this, because you always read about this in secondary,
tertiary sources.
surplus book room, and I'm telling this guy that I know,
And so I'm in a book room, a big
10
I really need this source.
11
conversation, I reach unconsciously behind me into a box
12
and I pull out this book.
13
And as I'm having this
This is a really interesting one.
This is
14
actually a presidential report.
15
was commissioned at the time, 1975, to look at the
16
abuses of the CIA.
17
Committee reports, which were Congressional hearings
18
that took place in the early '70s to investigate the
19
abuses of the Central Intelligence Agency, the kind of
20
abuses that we read about today, because nothing really
21
changed.
22
This is a report that
Now, this came out of the Church
Supposedly, this was to change things.

Now, what's in this report?
The LSD
23
experiments were in this report.
24
Intelligence Agency was domestically infiltrating civil
25
rights groups, antiwar groups, people that, essentially,
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The idea the Central
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opposed the government within the United States, which
was not part of their mandate, in fact, was illegal.
The fact that they were reading people's mail, utilizing
unwitting victims and experiments for mind control.
of this came out in this report in 1975.
CIA continues to do it even to this day.
All
And yet, the
Think about the kinds of activities that have
been reported pretty widely over the last few years,
whether it's digging through garbage to blackmail other
10
diplomats, which is something our Intelligence community
11
does, whether it's to send pallet loads of money into
12
countries like we did in Afghanistan to bribe officials
13
as a way of doing business, or whether it's to
14
assassinate people with drones, kidnap people and
15
torture them.
16
Now, most of us don't know people like this,
17
but this is the government that I unfortunately have
18
guiding my country right now.
19
criminals.
20
couldn't happen here.
21
It's a government of
Now, people want to talk about, oh, this
It has happened here.
It's happened for
22
decades in the United States.
23
President's Commission touches the very tip of that
24
iceberg.
25
This report by the
This is another document.
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This is -- this guy,
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Captain Tyler, he later became a colonel and retired.
He was involved in pretty much the sort of esoteric side
of some of the government research.
chapter out of this book is called, "Low-Intensity
Conflict and Modern Technology".
Maxwell Air Force Base in 1984.
about a large -- a variety of technologies.
8
9
This book -- this
It was prepared by
And it was talking
But in this particular one, if you look at,

certainly, the subject lines, you have stimulation of ,
10
bones* generation, healing of fractures, treatment of
11
disease, healing of wounds.
12
modification in animals.
13
that are listed here were kind of under the mysterious
14
category.
15
happening in 1984.
16
You look at behavior
You know, some of these things
They couldn't really explain what was
But the idea was to stimulate research in these
17
fields.
So a number of things happened.
18
started to flow into these areas.
19
that came out in the 1980s as a result of some of this
20
was the Radiofrequency Dosimetry Handbook.
21
big, thick handbook.
22
of Utah under contract to the United States Air Force to
23
determine the radiofrequency dosages that were required
24
to override every vital organ of the human body, whether
25
it be the heart, the liver, the lungs, the kidneys, just
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A lot of money
One of the reports
It was a
It was produced by the University
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sort of preempt their natural function to be able to do
it remotely.
And the idea was to take that leap of
technology and begin to apply it into weapon systems.
Mind control.
you will remember this one.
Yeah, 2002.
about the ethics of mind control.
it exist or doesn't it exist?
"The Economist".
Cover story.
Some of
This is 2002, I believe.
And what this cover story was about was

Not saying, hey, does
It's just saying it's
10
here right now.
11
we should advance this technology, whether we should
12
limit this technology.
13
credible publication.
14
story.
15
We really need to be debating whether
"The Economist" is certainly a

Not too much happened from this
This is -- unfortunately, it's not showing up.
16
November -- you can get this one on my website.
I'll
17
give you my website, because this is a very important
18
document.
19
human experiments.
20
in history, that's like tomorrow and yesterday, right?
21
It's, like, now.
22
mind control experiments and who has the authority to
23
approve them.
24
approve them is under secretaries of the Navy in the
25
case of Navy Intelligence or Naval research.
The Navy set up a new set of regulations for

It was approved in 2006.
You know,
And in this they specifically call out
And the persons with the authority to
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Now, it's not just CIA.
Naval Intelligence
does this work.
non-lethal weapons that this falls under.
has the electromagnetic directorate, which is working in
an area called controlled effects, which deal, again,
with mind control and physiological effects on human
beings.
"Technology Horizons".
issue.
10
The Marines have a section on

The Air Force
In fact, they publish a publication called

I believe it's the June 2004
You can look it up.
The cover story is on
controlled effects.
11
Now, what are controlled effects?
The first
12
effect is attacking hardware; you know, like equipment,
13
like machines, to be able to interfere with the flow of
14
electrons through circuits to disrupt those machines to
15
operate.
16
history, but using energy itself to manipulate hardware.
17
Not using bombs and bullets and the things of
The second sort of level of controlled effects
18
talked about in that article is the idea of manipulating
19
the software, the systems that run those systems, so
20
that you can disrupt the software, then you disrupt the
21
hardware, and things collapse.
22
And the third leg of controlled effects is the
23
human operator.
And what they say in this particular
24
article produced by the electromagnetic director of the
25
Air Force is that we can target or create the illusion
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of all of the senses in the human body; sight, sound,
touch, taste, to give people complete memory sets,
complete experiential sets that you wouldn't be able to
distinguish the synthetic from the real.
Now, think about that for a moment.
What does
that do to court testimony in 20 years if this becomes
the norm?
post-traumatic stress syndrome folks, people coming back
from warfare.
They're now talking about using this for
This just sort of cleans up the garbage
10
of the mind and gets rid of that stress.
11
think that's a great idea.
12
the biggest mistake we could ever make.
13
whatever those servicemen and women were engaged in --
14
what used to happen in warfare -- what happened in World
15
War II when everybody came back, they said, I don't ever
16
want to see my children in these things, I don't want to
17
see my grandchildren in these things.
18
put down, not amplified.
19
Some people
Personally, I think that's

Because
Wars need to be
When you take the human factor out of warfare
20
and it becomes like a videogame, then our willingness to
21
withdraw from direct conflict no longer happens.
22
And think about where our military science has
23
gone.
In fact, I want to mention another very important
24
publication.
25
in the early 1980s.
It was produced by the US Army War College
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It's called the "Revolution of
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Military Affairs and Conflict Short of War".
particular paper was talking about revolution of
military affairs.
And this
What is that exactly?
This is a leap as important as the introduction
of gunpowder in the middle ages in Europe, as important
as atomic weapons in the last century.
they characterize it.
where we move from ordinance, from bullets, bombs,
things that rip tissue and tear things up, to
And that's how
And what this is is the leap
10
electromagnetic weapon systems that keep sort of the
11
hardware intact, but debilitate the human operator to
12
the point of being combat ineffective.
13
enhance the possibilities within our own combatants
14
while degrading the abilities of others.
15
Or conversely,
There's simple ways that you can achieve this.
16
You can introduce to the battlefield certain elemental
17
compounds that in small background amounts would not be
18
considered dangerous.
19
example.
20
body to maintain thyroid function.
21
much iodine, you'll get poisoned.
22
get sick.
23
Let me give you iodine as an
We all need a certain amount of iodine in the
So what can you do?
But if you have too

You'll die.
You'll
You can send a signal in
24
that resonates the very same signal strength and
25
frequency as iodine, you can send that signal in and the
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body will begin to react as if its gotten this massive
load of iodine and show all the symptoms of iodine
poisoning.
You check the thyroid; check the blood, it's
not there.
Mystery illness.
Something as simple as that for manipulating
large populations, not necessarily with their consent
and not necessarily with clear knowledge, and nothing
shows up in the background that would say why this
poison actually exists that would account for this.
10
11
simple way.
One of the other ways that this technology can
12
be exploited is really quite simple.
13
article produced by "Parameters", which is a military
14
publication.
15
the -- I believe it was the Fall 1998, but you can look
16
up the article name called, "The Mind has no Firewall".
17
It's a very important article.
18
about all the various ways in which you could introduce
19
mind effects or mind control technologies using modern
20
technology today.
21
written in a military journal called "Orienteer"
22
published in what is now Russia.
23
"Parameters".
There was an
You can look it up.
It's
This article talked
And the original article was actually
What's interesting about this is it said you
24
could use any electromagnetic carrier, whether it be
25
radio, TV, the Internet, now cell phones; but,
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essentially, any of these carriers, you can modulate a
signal on them that will manipulate behavior of segments
of the population.
And the Russians demonstrated this in a couple
of different ways.
There was a program.
It was called
"Undercurrents".
Canadian Public Broadcasting System.
did two really interesting stories that I got to
participate in.
It aired in the CBC, which is the

"Undercurrents"
One was on HAARP and the other was on
10
mind control.
And on the mind control story that they
11
did -- this was a very popular program in Canada at the
12
time and this particular segment was their highest rated
13
that they had ever run.
14
who were involved in the "Star Wars" initiative during
15
the Reagan Administration that couldn't talk about what
16
they did in the White House, but they could talk about
17
what they observed in Russia.
And they had folks that came in
18
And one of the things that they talked about
19
was the idea that you could -- you could create, sort
20
of, this white noise and on this white noise carry a
21
signal.
22
cake.
23
these little cakes?
24
of Europe as well.
25
And so they put out this message, bring us

And Russians at tea time, you know, they eat
I guess you do that in other parts
And so at the appointed time they began to
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broadcast this.
and on the street were bringing cake into the meeting
room without really knowing why they were doing it.
They just felt like doing it.
what they were programmed to do.
And workers from within that building
Now, this goes back.
Well, that was, in fact,
We're talking about
15-year-old technology.
And when you think about sort
of where did it go from there, in 2006, there were a
couple contracts left by DARPA, which does research for
10
the defense industry in the United States.
And DARPA
11
used to be run by a guy named Tony Tether.
Tony Tether
12
was a good friend of Ben Eastlund's.
13
Now, what they were doing then was, they had
14
left two contracts to the University of California for
15
what's called electronic telepathy.
16
telepathy.
17
a distance by analyzing the emanations coming from this
18
area, being able to analyze that and determine and
19
interpret what it is.
20
contract was to create complex signals to see if you
21
could transfer that array, so to speak, of signals into
22
another person's consciousness and whether they would
23
perceive the same images.
24
25
Okay.
Electronic
The idea of reading another person's mind at
And then the other half of the
Now, there was work done by Elizabeth Rauscher

and her late husband, Bill Van Bise, in this very same
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area.
In fact, I have a copy of their unpublished paper
where they actually built an electronic circuit where
they could take a person in one room and a person in
another room, attach this person to that circuit and
this person to that circuit, and then, you know, the
psychic card where they show the triangles, the squares
and the circles and the little squiggly lines, a hundred
percent accurate with nine test subjects who had never
experienced consciously in any way any sense of
10
extrasensory perceptions or psychic perceptions.
11
did it with hardware, transferring thoughts from one to
12
the other.
13
They
Now -- which tells me it's probably a little
14
more simple than what DARPA's doing.
15
Eastlund was doing work on HAARP and he was doing other
16
work for DARPA at the time and we had talked about him
17
in our first publication, and then actually after
18
publication became friends, and Ben Eastlund's attitude
19
was, you know, some things just shouldn't be done.
20
one of the things that he had been working on was
21
whether modification technologies, which he was at that
22
time and when we first met, making that technology
23
available to the military.
24
us and others, he decided there's certain technologies
25
that are not safe in the hands of military.
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But when Ben
And
And after some dialogue with
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At one point along the course I began doing
quite a bit of work on this whole mind effects issue.
And I caught the attention of a woman, Dorothy Lay.
Now, Dorothy is one of the heirs to the Lay, as in
Frito-Lay and PepsiCo Corporation.
family.
specifically as it applied to victims.
So a very wealthy
Dorothy was very interested in this technology
And so she approached me at one point and asked
if I would become a member of her board of directors for
10
a non-profit that she was setting up to deal with these
11
kinds of technologies.
12
whether I should tell you the rest of this story, and I
13
think I will, because why not?
14
And I've got to think about
So I have this thing, intuition.
All of us
15
have it.
16
do today.
17
listen, because when I really think about it, it's never
18
been wrong.
19
about it.
20
start acting on it.
21
I used to not pay as much attention to it as I

When my intuition tells me something, I
Neither has yours, if you really think

Or maybe you don't think about it and just
So my intuition said -- and this was a very
22
difficult time for me in 2002.
23
betrayed by a very good friend, economically was
24
bankrupt in the middle of this work, because I started
25
this work in '94.
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In 2002, I had been
Economically was being crushed.
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And
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at that point I was deciding whether I was going to stay
in this work at all.
And I'm going through a bunch of my files and I
see this file and it's marked Lay.
person had contacted us needing some information and we
provided it.
way we operated is, I sold books.
bought my books.
And I remember this
And we never charge for that.
I mean, the
And people like you
And they allowed me to do this work.
I didn't write for grants where somebody could
10
manipulate me and control me and tell me what to say.
11
didn't go out and find some publisher that would edit
12
out my work.
13
book.
14
that work by buying that book.
15
two and a half million dollars and I spent that two and
16
a half million dollars over 20 years doing what I'm
17
doing right now.
I risked my own money.
I published my
And then I asked people to help me by supporting
18
A VOICE:
19
(Applause.)
20
DR. BEGICH:
And I tell you, I made
Thank you.
And the whole idea was just to
21
educate.
I didn't deal with victims.
22
reason I didn't was because I felt that that was putting
23
the cart before the horse.
24
people that the technology is real, that this could
25
really happen to people and from that foundation, and
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Okay.
And the
We first need to educate
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that became the foundation of my work in this.
So Dorothy calls me on the phone and she says,
will you be on my board?
an hour.
on your board.
And I talked to her for about
At the end of the hour, I said, no, I can't be
She said, well, why not?
I said, because my intuition is telling me I
8
9
10
really can't be on your board.

And she goes, well, I deserve more than that.
I said, okay.
I don't know your board members,
11
I don't know who your board is, but something in here is
12
saying there's a problem there and I don't want to be
13
associated with them.
14
(Applause.)
15
DR. BEGICH:
16
I got the call back.
17
you have millions.
18
what they say they're doing.
19
being done and find out for yourself.
20
diligence again.
21
So it was a couple of months later

Because I told her also, I said,
You have the ability.
And she did.
Go see if it's really

Do your due
A couple months later she came
22
back and she said, you were right.
23
me a number of ways.
24
just me now and my attorney.
25
Go research
They were defrauding
I've cleared out my board.
It's
Will you be on my board?
Now, bear in mind, I'm in a pretty desperate
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situation economically.
At the time I have five
children at home.
have an economy that I've got to manage.
Dorothy, no, I can't be on your board.
I've got people to take care of.

And I tell
She says, well, why not?
I said, well, I need to meet you first in
person, eyeball to eyeball.
for three days.
foundation.
I said, we're going to talk
We're not going to talk about your
I want to know everything I'm ever going to
10
read about you and your family in the newspaper.
11
you to have the same knowledge level of me.
12
to know what your world view is before I join with you
13
in achieving that world view, because you have the means
14
and I have the willingness if that world view is shared.
15
So we spent a few days.
I want
And I want
We decided that I
16
could do this.
17
And we put together, as her major effort was, a
18
conference on mind effects.
19
public.
20
bring some key people together to have a conversation
21
that would be open and free.
22
And for four years I worked with her.
But it wasn't open to the
It was closed to the public.
And it was to
And one of those people I invited was Ben
23
Eastlund, who by then I'd gotten to know, had watched
24
what he had done in terms of his career.
25
connected with DARPA at the time.
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He was well
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And I called him and I said, you know, Ben,
would you consider participating in this conference?
And he said, you know, if you had asked me this
seven or eight years ago, on a scale of one to ten, ten
being the relevance and importance of this, and one
being irrelevant and unimportant, I would have given
this a one or a two.
time I talk to Tony Tether or others at DARPA, nobody's
laughing about mind control anymore and it's a nine or a
10
He goes, but -- he goes, every
ten and, yes, I'll participate in your conference.
11
The next person I asked was Garth Nicolson.
12
Does that name ring any bells for anybody?
13
Nicolson was a full professor, I believe it was Texas
14
A&M.
15
thousand medical students.
16
whistle on Gulf War Syndrome and testified in our
17
Congress six times before his wife was fired as a
18
molecular biologist from Texas A&M.
19
they couldn't fire him.
20
him, because he was one of the first courageously enough
21
to step up to the plate and complain about what had been
22
happening in the Gulf War; we depleted uranium and some
23
of the other technologies that were being applied there.
24
25
He taught medical students.
Okay.
Garth
He taught over a
He was the guy that blew the
And he was tenured;
But they definitely harassed
Well, the best thing that ever happened to him

was he got out of the university system.
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He formed a
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35
nonprofit to deal with chronic disease.
somebody that I watched maintain his course under really
difficult circumstances.
conference.
And he was
So he was invited to that
I invited the daughter of my mentor, Raul
Makayla.
one of the boards in Russia that regulates medical
applications of lasers.
Quite brilliant.
10
She's an electrophysiologist.
She serves on
She's an electrophysiologist.
We invited her.
We invited Rosalie Bertell.

Okay.
Does anyone
11
remember Rosalie Bertell?
12
passed.
13
physicist, biologist.
14
doctoral students at Berkeley.
15
It's kind of an odd combination.
16
statistician to go in to Bhopal for the World Health
17
Organization after that huge chemical disaster.
18
was considered one of the top people in the world for
19
dealing with victims of radiological experiments,
20
including electromagnetic radiation.
21
some of our work and added to it and published a book on
22
the HAARP system and its effect on human beings on this
23
sort of broad scale.
24
been through some really difficult times as well, rose
25
out of her own ashes and maintained her ethical
Also deceased now.
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A few.
Rosalie's
She was a mathematician,
She taught higher mathematics to

She was also a nun.
She was the lead
But she
She actually took
So we had invited Rosalie, who had
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1
2
platform.
The other person we invited was Alexander
Kaivarainen.
Does anybody recognize that name?
He was
the former head of the USSR Academy of Science
Biophysics Department for ten years.
area that really gets into the meat of what we're
talking about here today.
believe, is deceased now also.
guys, you know, they're a lot older than me and they
And this is the
Now, what got -- Alex, I

You know, all these
10
keep dying of old age.
11
science at a young age watching a demonstration of the
12
paranormal, ESP, telepathy, these kinds of things in
13
Russia when he was a teenager.
14
caught his interest.
15
But Alex got his stimulation in
And it just really
When I met Alex, he was in his 60s and he was
16
the brightest top five physicists on the planet,
17
recognized by institutions around the world.
18
he had determined is that there were rational reasons
19
for why these things manifested.
20
this conference and actually presented a paper giving
21
the mathematics and the physics that lends itself to
22
these extrasensory possibilities, these things that the
23
military now calls anomalous human capabilities.
24
used to call it extrasensory perception or ESP, but now
25
they give it a new name because there's a lot of
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And what
So he was invited to
We
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37
connotations with that that kind of get you discredited
in certain segments of the scientific community.
So I want to talk -- roll back again a little
bit -- I want to talk about binaural beat, which I had
mentioned earlier in this presentation.
around a little bit.
not even use these things, but I think people feel more
comfortable using them.
And I jump
It's kind of my style.
The binaural beat.
I used to
We can't hear these really,
10
really low frequency signals, because the human ear
11
doesn't quite work that way.
12
the human ear won't hear.
Below a certain frequency,
13
Now, a gentleman by the name of Robert Monroe
14
developed a method using binaural beat where you could
15
send in a signal within the range of human hearing, say,
16
at 15,000 Hertz or pulses per second or cycles per
17
second, coming in one ear at, say, 15,000, another
18
signal coming in the other ear at, say, 15,007.
19
the cranium they will cancel each other out and leave a
20
beat frequency of seven, the difference between the two.
21
15,000, 15,007.
22
seven pulses per second, which happens to be in the
23
upper Theta range, and this is where the brain then
24
drives to.
25
Within
The beat frequency becomes seven Hertz,
At the same time that that occurs, you get a
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hemispheric balance, a distribution of energy across
both hemispheres of the brain, the analytical side and
the creative side and working together.
actually how human beings are supposed to function.
This is how young children predominantly function, with
more of a balance between the hemispheres, where the
energy is more balanced.
8
9
This is
And then we educate them.
And with young girls, who we say are more

intuitive and have this other operation of the brain,
10
and young boys are more analytical, and now we kind of
11
treat everybody the same so we kind of dumb them all
12
down to the same level.
13
children and you look at where their brain activity is
14
and between 3 and, say, 5 or 6 years old, they have
15
this predominant brain frequencies or a lot of Theta
16
brain frequencies coming in and then some ELF and then
17
higher frequency ranges.
18
But when you look at young
Now, what is Theta?
Theta states if we're in a
19
Theta state, we're kind of like in that dream-like state
20
between awake and asleep where you're consciously aware
21
of your dreams.
22
good deal of their time.
23
as we call it, are so active.
24
don't pay attention to that, don't pay attention to
25
that.
That's where 3 to 5 year olds spend a

That's why their imaginations,
And we keep saying, oh,
This was our first attempt to shut down the
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intuitive combinations of the way the brain is actually
supposed to work.
In fact, for those who have a Christian
background, you know Jesus Christ himself said, look at
the little children, watch what they do.
think I heard somebody say something about this earlier,
little children come to the table kind of innocent with
a view of the world that's quite different than the rest
of ours.
You know, I
But the brain activity of children is unique
10
and we begin to take that out of them in the structure
11
of the way we educate.
12
So what Robert Monroe -- he was actually a
13
radio engineer.
14
had this really weird experience.
15
body experience, that he had that kind of threw him.
16
You know, it didn't make any sense to him.
17
began -- he also noticed that in the background there
18
was this kind of noise that he perceived.
19
He owned a bunch of radio stations.
He
It's an OBE, an outer
So he
So he began to experiment and he created this
20
technique for binaural beat.
He developed a whole
21
series.
22
binaural beat.
23
those US patents from 1994, and this is showing the
24
brain before the activity, before turning on the
25
Hemi-Sync, and this is after, showing a more even
In fact, he actually got US patents on a

This is an image taken out of one of
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distribution in a more rhythmic pattern in the
brainwaves as you see in the upper right-hand corner.
Let me roll back again so you can kind of see
the comparison.
activities happening all through the brain, and then a
coherent signal creating a hemispheric balance and an
optimization of brain potential.
8
9
Normal brain, kind of disorganized
So what did he do with this?
He developed a
whole series of things; audio input technology,
10
essentially, to manipulate behavior, but where you're in
11
control of that manipulation.
12
smoking, you get his CD on quit smoking.
13
brain in such a way, becomes compelling, very affective.
14
So you want to quit

It affects the
Sleep disorders can be addressed in this way.
15
They have someone be able to relax, meditation,
16
concentration, accelerated learning.
17
things can be done.
18
over the course of many, many, many, many years, and now
19
his daughter doing the work of working with thousands of
20
people to determine which signals actually created which
21
effects and then developing technology that they could
22
place in the hands of individuals to make the choice on
23
how to use it.
24
25
A whole array of
And they did this by working with,
Now, that's kind of an interesting way of

looking at technology.
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It was my area of interest, in
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the beginning of all of this work, was not looking for
the dark side of all of this, but in the mid-'80s I got
very interested in light and sound stimulation of the
brain that capitalized on sound signals and flickering
light for brain entrainment.
the brain will follow that external signal or what's
called FFR, frequency following response.
little energy.
Entrain the brain where
So very
Let me roll back to Delgado again.
10
One-fiftieth of the amount of energy the earth creates
11
is sufficient to move your brain into very specific
12
states.
13
just another technique for altering brain activity that
14
might be beneficial, but you're in control of it, not
15
somebody else.
16
Dialing that radio up, if you will.
This is
I'm going to skip some of these just because
17
they're not so relevant.
18
images and let me just go back into the whole dialogue
19
of this, mind effects.
20
And I'm going to close the
When I think about sort of where do we go with
21
this conference, when we put that conference together
22
with the Lay Institute, our purpose was to put together
23
these really good thinkers to try and see if we could
24
create a synergy between them.
25
And when I first got interested in doing
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something actively in science, it wasn't about HAARP and
it wasn't about mind control.
would play -- and I was working in a government office
at the time, and it was -- my friend said, you make your
living with your left foot.
living, but the rest of my creativity could be engaged
elsewhere and me working in bureaucracy was really a bad
match.
The role that I thought I
Because I could make my
But the point was, my youngest son, when I was
10
getting really frustrated with my work, said, change
11
channels.
12
You know, I'm thinking about this, because I
13
had just given him this discussion about creativity was
14
like changing the channels on the TV set, right, and so
15
he's feeding it back, time to change the channels, Dad.
16
So I thought about it.
And what I decided I
17
would do is -- I read independently in science over 20
18
years.
19
say, one guy in one branch of science.
20
if this person could ever meet that person, you could
21
really see something happen.
22
I had read some really compelling things from,

I thought, boy,
And the first paper I actually ever presented
23
in science, I was 19 and it was at another obscure
24
conference that I ended up in on biorhythm research.
25
And my paper was contrasting at that time the Soviet
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method of research versus the US method.
method was compartmentalization, separate.
distill things down to the smallest subspecialty and
then push these people into a corner and let them do
this bit of the research.
other people over here and ten other groups over there
and fifteen groups over there, and somewhere all of this
stuff comes together and it gets really sloppy.
It's sloppy because there's a lot of repetition; it's
10
Now, the US
You know,
And then you've got nine
Okay.
very expensive.
11
Now, the Russians, Soviets at the time, they
12
didn't have the money for that kind of research, to
13
spread it out that way, and they used a very different
14
method.
15
fields, even though they didn't seem like they should
16
connect.
17
together to develop science.
18
at the exposures that we had seen earlier, what are the
19
regulatory exposures of electromagnetic fields, the
20
Russians in the '90s and the '80s were a thousand times
21
more stringent than they were in the US.
22
They took experts from all of these different
They put them in the same room to work
Well, why was it?
That's why when you look
Because they had actually
23
made the observations that we hadn't made and actually
24
connected the dots in a way to say, hey, this is
25
dangerous.
That doesn't mean they followed their own
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regulations, because they probably didn't.
whatever was expeditious there.
recognized the physiological responses to
electromagnetic fields and the fact that you could
manipulate it.
They did
But at least they
What was discovered by a guy named Allan Frey,
he was looking at microwaves, and he discovered that
there's this flickering effect, but it only occurred
when you pulse-modulated the signal.
And if you look
10
at -- I heard earlier, it's always scalars.
11
scalars.
12
fields as we think about them.
13
It's not vectors.
It's always
It's not electromagnetic
But if you look at the ones that affect human
14
psychology and physiology, if you look at those signals,
15
they have a very quick rise time and a very fast drop.
16
They're like the punch, like punching that ionosphere to
17
create the ELF.
18
modulations on these other carriers are meant to trigger
19
that effect by you entraining to that pulse, that
20
firing, or some submodulation being carried on a general
21
carrier.
22
It's like those signals.
Those
Now, if you remember the first Gulf War, the
23
first Bush War, and you remember how the Iraqi Army just
24
sort of gave up.
25
just like school children on their first fire drill
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throwing their hands up and surrendering, you know,
thousands of guys to a few dozen.
Now, I speculated on this.
What was that about?

And then it was
Scottish media that later reported on this and said it
was Project Solo, which was a project operated by the
United States.
flying over the country at the time and it was taking
and piggybacking the signal on the radio broadcast going
into the region that were broadcasting the Muslim music
10
11
And what we did is we had this C-130
and prayers.
So all these guys are in their bunkers
12
listening to their favorite radio station.
Unbeknownst
13
to them, the subsignals being played on that broadcast
14
created anxiety, high levels of anxiety and fear.
15
then you watched this Army just collapse under this.
16
And that was kind of the -- in my view, the
And
17
first test of could you really do this, could you do it
18
in this adversarial environment.
19
And one of my friends joked, hey, it's the
20
perfect Republican weapon, right?
21
hardware in place, but totally wipe out the population.
22
Zbigniew Brzezinski said, in between two ways,
23
it doesn't matter if it's Republicans or Conservatives.
24
They just use different rationale for accomplishing
25
their political ends.
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You can keep all the
On the conservative side, the
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Neocon side, it might be the fascination with gadgetry
and new technology, as Zbigniew Brzezinski said, and on
the liberal side it might be the idea that we're doing
this for your own good.
And we've all heard that before.
The government is here, right?
The fact of the matter is, when you start
thinking about mind control technologies as a concept,
the idea that someone believes that they can interfere
with your free will, this is something that most
10
religions in the world say God won't even do.
11
think this is their appropriate direction in technology,
12
to interfere with the way consciousness flows.
13
Yet, men
Now, think about for a moment what are the
14
things that -- what is the easiest way to manipulate
15
consciousness?
16
Create an environment of anxiety and fear.
17
happens at that point is you cannot reach your higher
18
states of consciousness.
19
The easiest way, the simplest way.

Because what
If you look at Monroe, rhythmic patterns in the
20
Hemi-Sync as an example, higher states of consciousness
21
are associated with those rhythmic patterns within the
22
brain; not that incoherent scattering of death and
23
information and energy.
24
25
So if you create a certain environment of fear

and anxiety and you look at an EEG monitor and the brain
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activity of an individual, you see it's kind of
scattered in patterns.
higher emotions; love, compassion.
rhythmic patterns.
One person is experiencing

You begin to see
Another simple way of seeing is something that
you can actually measure.
Take two people that are in
love and they -- you know the saying, and I looked into
her eyes, right?
another individual and hold that gaze, you'll begin to
If you actually gaze into the eyes of
10
mirror each other's brain activity in a pretty unique
11
way.
12
long enough.
Two people's breathing begins to
13
synchronize.
Their energy fields begin to synchronize.
Your breathing will even synchronize if you do it
14
And at the same time, their awareness, their
15
intuitions elevate and their rhythmic patterns in the
16
brain can be seen.
17
fear -- think about the advertising you see on
18
television.
19
breath is, you know?
20
uncomfortable.
21
If you can create an environment of
It's all about how you smell, how your

It's all these things to make you
Think about the 6:00 news.
Now, we heard
22
someone talk about the 6:00 news and how that kind of
23
works.
24
people sit down in front of the television set.
25
already fatigued.
You come home from a hard day at work.
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They're
They begin to watch the television.
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And then their spouse hollers, it's time for dinner;
it's time for dinner.
right?
they're in a light trance-like state.
How many of you've been there,
Nobody's listening.
No one's hearing.
Because
Now, if you look in a dark room -- the
television is here -- look behind you at the white wall
and look at the flicker rate.
coherent signal within a certain range through the optic
nerves, your brain will lock onto that signal.
If that flicker rate is a
If you
10
monitor the brain activity at that time, you'll drop
11
into this highly-suggestive state and now you listen to
12
the advertising.
13
Now, every school of psychology teaches
14
frequency following response today and that you can
15
create these kinds of effects.
16
advertising?
17
advertising works so well.
18
convincing and compelling.
19
Would they apply in
Of course they would.
That's why
It works because it's
When you look at the 6:00 news, would somebody
20
utilize that in broadcasting the news of the latest
21
propaganda from whatever source it's coming from?
22
would speculate -- today I would speculate and say yes.
23
When you think about how simple it is to create
24
that agitation.
There was a person at Valencia
25
University who published a paper in 1995 talking about
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this whole concept.
could create a complex signal, broadcast it out over a
large area that just created the sense that something's
not right.
And what he said back then was you
Unease.
And then you go watch the 6:00 news and they
indict some specific ethnic group, maybe it's Muslims,
and then a certain amount of that anger gets diverted
that way.
decided on the laser edge of populations, on majorities,
Well, in a day where a lot of things are
10
this is a very, very powerful tool and one quite simple
11
tool to apply in the modern world.
12
When you think about news feeds today, how much
13
is really investigative reporting and how much of it is
14
just spitting out somebody's press release, right?
15
little investigative reporting today because it's
16
expensive, because it's not immediate, and when you look
17
at the news media today, it's almost immediate and most
18
of it is just meant to entertain.
19
inform.
20
Very
It's not meant to
You know, freedom of the press, it used to have
21
something to do with keeping an informed public so we
22
could make good decisions and we could govern as a
23
public.
24
Say whatever you want, say it however you want, but
25
nobody takes responsibility and we have the neutered
Today we debate the media as freedom of speech.
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neutral news.
come on.
And if you really believe it's neutral,
Everybody who assigns a story to a reporter
knows that reporter's biased.
It comes out in the news and what gets published and
what doesn't.
the news?
up.
But no one has really taken it on as a topic and
10
11
The editors have bias.
How many stories about mind control hit
Occasionally.
The economists might pick it
Somebody might pick up a little bit, a piece of it.
consistently pursued it.

Yet, when you think about modern technology and
12
the resolution -- now, we've been talking about things
13
that have happened in the past, and somebody even
14
mentioned this, MK-ULTRA is a program -- you've heard it
15
alluded to.
16
subprojects under it.
17
That was the CIA's program.
It had 144
Most of the records surrounding that were
18
shredded by a guy named Gottlieb, who was responsible
19
for that at the Central Intelligence Agency during the
20
Church Committee hearings.
21
truth back then.
22
this, has become increasingly refined as our technology
23
has advanced.
24
25
We never really got the
But the resolution, the ability to do
When you think about technological advances,

one of the things I read says that technology from the
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invention of the wheel to where we are today, it doubles
about every nine to ten months.
Invention of the wheel to where we are today, ten months
from now we're going to double that, and then we're
going to keep doing that.
Wow.
Think about it.
It used to be every five years in the 1980s,
and it kept shrinking as our computing power increased
and our ability to manipulate large amounts of data
increased.
10
Now, a super computer, think about a super
11
computer.
12
was doing this work, about 280 teraflops a second, which
13
at that time would be like six billion people on the
14
planet with hand calculators doing a calculation every
15
60 seconds for 60 hours to do what that super computer
16
could do in a second.
17
A super computer will do somewhere, when I
Well, the next evolution -- some think it's
18
already here -- are the quantum computers.
19
the quantum computer do?
20
will do what a super computer does in a trillion years.
21
It's back to this analogy of how much EMF do we have out
22
there.
23
What will
A quantum computer in one hour
Well, think about the same kind of
24
amplification and computing power.
25
as a concept.
You look at privacy
It doesn't exist in the world today,
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right?
tracked, whether it's your GPS on your phone, whether
it's your phone conversations -- in the United States,
every piece of mail is photographed for who it went to
and who sent it.
Virtually everything about us is catalogued,
When you think about your telecommunications,
your Internet connections, Google, AT&T, Verizon, all of
them have violated the very essence of what personal
privacy is all about.
10
Because today, in the 21st Century, we need a
11
revolution, an evolution of what privacy is all about.
12
Because you, experiencing the victimization of this
13
technology, are the pinnacle of the abuse.
14
is subject to abuse of personal privacy.
15
But everyone
You used to think about it, it would start and
16
end in our physical doorway in our home.
17
in your home compared to what is in data banks stored on
18
every single human being in this room.
19
It has nothing
Now, people say, oh, don't worry about it.
20
don't have the ability to collect.
21
resolution to look into it.
22
that resolution.
23
computing first will be able to hack through every
24
security code for every system on the planet within
25
hours.
We
We don't have the
Quantum computers will give
Whichever government finds quantum
They'll be able to predict with so much accuracy
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by collecting all that data and analyzing that data, it
will almost seem a spiritual event.
But it will only be accurate up to a certain
point.
And over time that flaw will amplify to where it's big
flaws.
guide our world, to guide our ideas, our philosophy, and
how we pursue the world.
And then there will be a little bit of a flaw.
But we'll rely increasingly on these systems to
The Internet.
What people think about that is
10
the world wide mind of the 21st Century.
11
Public Broadcasting System, did a special called "The
12
World Wide Mind".
13
I say within 20 years or even now -- maybe it already
14
exists now -- but within 20 years that you'll be able to
15
connect the physical minds of all of the people on the
16
planet in a world wide mind.
17
PBS, our
And they say within 100 years -- and
Now, that might appeal to some.
It doesn't
18
really appeal to me from the standpoint of technology.
19
I think we already have that on a certain level.
20
think we already are connected on a certain level.
21
belief systems limit our ability to access that level,
22
but I believe it's here.
23
I
Our
And I've seen enough demonstrations of it.
You
24
know, all those scientists I had in that room for that
25
mind effects conference, the part that really blew me
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away that I didn't expect was what they really centered
on was the idea -- and this was Rosalie Bertell, the nun
and physicist, and she said that the next leap is going
to be the leap where we realize or we recognize or we
remember our extrasensory perceptions, our anonymous
capabilities as human beings and that becomes the next
evolution of the human kind.
8
9
And what suppresses that is fear and anxiety,

because you cannot reach those cases of consciousness as
10
long as you're in fear and anxiety.
And anyone who
11
purports or is a victim of these technologies, do you
12
have anxiety, do you have fear?
13
you have the ability to reach those higher states of
14
consciousness in that condition?
15
not possible.
Of course you do.
Do
It's physiologically
16
So when you think about entire populations,
17
whether it's religion injecting fear or whether it's
18
government injecting fear or as my friend used to say,
19
you know, the king keeps you poor and the church keeps
20
you dumb, kind of was the early idea when you think
21
about how things evolved in Europe several hundred years
22
ago.
23
When you think about modern technology on the
24
backdrop of that concept, what's changed?
25
changed.
It's just the same deal.
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Nothing's
You know, 6,000 wars
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in 4,000 years, most of them over religion; let me give
you a clue, God doesn't need any help killing anybody.
God can probably do it himself or herself.
The fact of the matter is, the idea that people
would just be evil on -- and I think I heard earlier
today that the psychopaths are in the minority.
believe they are.
people, they're out there, but they're not this mass.
Most people do things because they believe they're
I think really evil-to-the-core
10
right, and then they want to impose their rightness on
11
other people.
12
And this is kind of a mistake and then we end
13
up in this conflict between ideas without being fair and
14
recognizing people's right to disagree.
15
said earlier, certain things you can't say in Germany.
16
Certain things you can't say in a movie theater, too.
17
You know, you can't yell fire.
18
sense.
19
And I heard it
Now, it makes good
You don't want to yell fire in a movie theater.

Some would say what we're doing here is yelling
20
fire in a movie theater because we're letting people
21
know what we know, what we've concluded from a good deal
22
of research.
23
You know, my books are written, every page at
24
the bottom of each page are the footnotes.
25
find that distracting.
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Some of you
Personally, I want to know where
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the information came from as I'm reading it, not a week
later as I'm contemplating it.
source.
I want to know the
And so in the publications that I've written,
1600 source documents, reviews out of a matrix of a
hundred thousand that we had available to us, more or
less.
have made it into four books on technology dealing with
mind effects, dealing with HAARP, dealing with personal
20,000 have made it into my archives and 1600
10
privacy issues.
11
the last four years.
12
A lot of the things go unreleased in
You can look at my publications from 1999 and
13
2000, and you'll see the same things, because the old
14
literature showed enough to come to those conclusions.
15
When I testified in the European Parliament in
16
the '90s, at their invitation -- and this was another --
17
a good side story for technology.
18
name of Thomas Spencer, he was from the UK, he was a
19
Parliamentarian at the time, and he was the Chairman of
20
the Environmental Subcommittee of the European
21
Parliament.
22
given him the book on HAARP and he was very interested
23
in this.
24
I flew to Brussels and spent a few days with him talking
25
about the issue and brought with me a couple feet of
A gentleman by the
And he had contacted me.
So we had a conversation.
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Somebody had
And at my expense,
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unclassified documents for his research team to take a
look at.
What happened then is he moved in the European
Parliament -- he was a Conservative, by the way, and he
moved into a Foreign Affairs Chairman, a very powerful
position, an ideal position for dealing with the things
that we were dealing with at the time.
8
9
So we -- at his invitation, I came over to

testify in front of the group on security and
10
disarmament in the European Parliament on HAARP and on
11
non-lethal weapons, the kinds of things we've been
12
talking about today, the manipulation of human beings.
13
Now, they do it a lot differently than we do it
14
in the US.
In the US, when you have public hearings,
15
the public actually gets to come.
16
Parliament, the public meeting is you have to have an
17
invitation to come.
18
know, I hadn't really thought much about that.
In the European
So that's kind of different.
You
19
And they also -- they can also do things behind
20
closed doors, which, you know, we theoretically can't do
21
in the United States.
22
the public invited or the media invited.
23
You can't have a meeting without
So what happened the night before the hearing
24
is the Committee met with myself, one of the other
25
people testifying, and a member of the press and we
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spent five and a half hours in a non-official meeting to
talk about these issues, so that when we actually gave
our testimony the following day, they would have
formulated a set of questions to give us the opportunity
to follow along.
because then they at least had a good base of knowledge.
So it was a great way to do it,
Now, in that private meeting we demonstrated a
technology using infrasound where you could transfer
sound through electrodes attached to the skin where you
10
would perceive that proverbial voice in the head.
11
demonstrated that to the Parliamentarians in that closed
12
session.
13
We
And then we went into the hearing the following
14
day.
15
her, testifying on our side.
16
the gentleman's name, but he was from a group called
17
GRIP in Brussels that does research on weapon systems
18
particularly and he had done his Master's thesis on
19
HAARP, and so he was there.
20
And it was Rosalie Bertell, which is where I met

It was -- I can't remember
We had someone from the International Red Cross
21
that had done work on non-lethal weapons and was a
22
specialist in this particular area.
23
there.
24
25
And then I was
We each got 15 minutes to present.
And then I
got an hour of questions from the committee in the open
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hearing where I had the opportunity to talk about some
of these things.
been this incident in Japan where children watching a
cartoon that had a certain flicker rate had caused over
700 children to go to the hospital with epileptic
seizures.
a problem, right?
to go into the hospital.
And right around that time there had
Now, remember, non-ionizing radiation is not

A flicker of the TV caused 700 kids
Now, some say that was by design.
Some say
10
that was by accident.
11
for talking about non-ionizing radiation in the European
12
Parliament because they had all read that story.
13
fresh.
14
But it was a perfect illustration
It was
The other thing demonstrating infrasound,
15
something that had never been demonstrated, to my
16
knowledge, in that type of a meeting, to show that you
17
could actually transfer sound without necessarily
18
involving the ears.
19
Now, there's another technology that was
20
advanced by a guy named Woody Norris -- he won the
21
Lemelson Prize at MIT for this particular technology,
22
and I believe the year was 2004.
23
Norris -- and his was using acoustic heterodyne where he
24
could send in two signals from two different sources,
25
point them at an individual in the crowd, and they would
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You can look up Woody
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hear this voice in their head and nobody else would hear
it.
Well, he won a half a million dollars for that
prize, organized a company called ATCO.
them up.
technology to the military for perimeter protection.
You know, where they could have these sort of alarm
systems so when the protestors got too close they'd hear
these warning signs that nobody else was hearing.
10
They're a public company.
You can look
And he sold that
Now, you think about that for a moment.
11
Imagine -- this is why the European Parliament got
12
interested, because we used this illustration.
13
imagine a national leader standing up in front of a
14
group and all of a sudden they hear voices in their head
15
that nobody else hears.
16
right?
17
what that technology can do.
18
demonstration.
19
Now,
That's the end of that guy,
I mean, he's out of there.
And that's exactly
And that was one
Now, some have said that you can pulse modulate
20
on a single beam and create the same effect or utilize
21
something like HAARP, not so much for voice in the head,
22
but for certainly changing emotional state of large
23
segments of the population.
24
25
When we looked at all of this, we even looked

back -- you know, where else could this have been used?
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And there was a device in Vietnam called the Lida
machine, L-i-d-a.
named Ross Adey, who is, unfortunately, also deceased.
Ross Adey was brilliant and was utilized by the
government, by private sector as an expert in these
kinds of areas.
A guy who researched this was a guy
Well, he was asked to look at -- this
particular device had been captured during the Vietnam
War.
It was a Russian device.
And it created the
10
entrainment effect using flickering light and sound.
11
And they used it for interrogating prisoners by putting
12
them into that, like, trance-like state and then
13
extracting intelligence from them.
14
1960s.
15
Now, that's the
Again, this is low resolution, low technology.

As computing powers increased, as our knowledge
16
in human physiology has increased, as our knowledge of
17
the electromagnetic nature of human beings has
18
increased, the ability to manipulate large segments of
19
the population comes easily achieved, either as a side
20
effect or unfortunate disaster of our technology.
21
You mentioned Swiss Re, Swiss Re Insurance.
22
Swiss Re Insurance wrote a paper on Electrosmog.
23
believe it was 2002.
24
industry then, don't insure electromagnetic field
25
effects because it will result in a bigger lawsuit than
CATERBONE
Family U.S.
of Mind
MindControl
ControlExperts
And they said to the insurance
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Firestone on their tires or the smoking industry,
because the knowledge is here and now and nobody insures
that risk.
Lloyd's of London insures anything, but they
won't insure that risk.
Nobody does.
Because insurance
companies don't like to lose money.
that.
before cell phones were invented, the University of
Washington had investigated those very same frequencies
It's as simple as
And yet the telecom industry on cell phones --
10
on chick embryo studies and determined they were
11
harmful.
12
Cell phones didn't exist then.

Then cell phones come out and everything's safe
13
all of a sudden.
14
says, now, wait a minute, we did all this research.
15
This is a dangerous thing.
16
a powerful adversary.
17
That same guy that did that research
So it went to the Congress.
18
There was a guy in Florida.
19
controversy.
20
said, we need a study.
21
pay for the study.
22
study.
23
But the telecom industry is
You remember this.
Brain cancer.
It ended up in the Congress.
Big
Congress
So the industry says, oh, we'll
They spend 25 million dollars on the
I can't remember the guy's name who did it, but
24
he eventually published a book because his findings
25
were, hey, this is dangerous.
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All right.
He issues his
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report.
they got the 25 million into his queue.
it all on these projects.
himself.
5
6
They figured, hey, they got him.
You know,
He got to spend
He got to make some money
Hey, he's our man.

Well, he wasn't.
This guy actually had some
integrity, and I apologize for not recalling his name.
A VOICE:
DR. BEGICH:
A VOICE:
10
George Carlo.
Which one is it?
George Carlo.
DR. BEGICH:
George Carlo, that's correct.
And
11
he wrote a book called, "Cell Phones", a very important
12
book.
13
And when it comes to children, one of his
14
observations was -- he had the simple observation of
15
damage to skulls.
16
five-year-old, 400 percent more energy transfers to the
17
skull into the brain than an adult.
18
twelve-year-old, approximately 200 percent.
19
You know, you have a four-year-old, a
Ten-year-old,
This is one of the main reasons why you don't
20
want children using cell phones or, even worse, the
21
portable phone in the home because it's even less
22
efficient with the battery and the energy with even more
23
leakage.
24
phone today where you actually pick it up and talk into
25
it.
And what do we do?
Try and find a hard line
You can't even find them anymore.
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They're almost
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impossible to find.
When you look at what we have learned about
human physiology and the effects of electromagnetic
fields on the human physiology, it is the revolution in
science that will collapse the pharmacuetical industry
one day.
recognize that the pea in the soup of electromagnetic
radiation has been the cause and the root to most of the
chronic disease we see on the planet today.
10
And one day we're going to wake up and
When you combine that with that concept that I
11
used, that example of iodine, everyone has a little bit,
12
now you have these complex interactions, 5,000 new
13
chemicals are introduced or compounds introduced to the
14
public every year without really any serious studies,
15
and then you add this on top of it, and now you have a
16
very toxic world.
17
manipulation from the propaganda of World War II to the
18
downloading of that.
19
achieve?
20
personnel with a download.
Blap.
21
years' worth of education.
Now, let's go on.
22
And then you take the technology of
What does the military hope to
They want to be able to train military
And now here's the thing.
23
kind of education.
24
programming.
25
thinking involved.
There's your 12
Think about that
No critical thinking involved.
It's like writing to a disk.
CATERBONE
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Who controls that?
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Just
No critical
Curriculum
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controls the way in which our society goes.
risk.
This is the
What about evidence in courtrooms when you can
create a synthetic memory or wipe one out?
that do to a Democratic Republic or a Democracy where
people have the power?
us as we become increasingly transparent to governmental
agencies and they become increasingly opaque.
What does
That power has been taken from
It is the opposite of what should be occurring.
10
There shouldn't be a camera in every household.
11
should be a camera in every government office.
12
the technology's there.
13
and look at what our employees are doing, right?
14
Wouldn't you like to be able to dial up your
15
Congressional office and see that conversation they're
16
having in real time?
17
that?
18
There
Because
We should be able to dial in
And why shouldn't we be able to do
What do they have to hide?

You know, you think about government and you
19
start saying that and, you know, the only people
20
protected from that kind of intrusion in the US are
21
federal employees.
22
protection than the average citizen within the country
23
that I live in.
24
25
They have a higher level of
For what?
And when you think about government, everyone

points to the politician.
CATERBONE
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MindControl
ControlExperts
I can tell you, most
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politicians are ignorant.
parties in the United States the preference is to have
people that are -- they look like the news announcer,
but they couldn't think their way out of a phone booth,
right?
they couldn't think their way out of one.
want people that are smart enough to look good, but not
smart enough to think on their own.
politician for political parties, because they can be
10
In fact, most political
We don't even have a phone booth anymore, but

Because they
That's the ideal
told what to do.
11
Look at how much money is being spent in
12
political outcomes.
13
have pointed and looked at, like, Australia to mandatory
14
voting.
15
Huge amounts of money.
Some people
Everybody votes now.

Worst possible thing that you could ever do.
16
And here's why:
17
pulls the lever?
18
maybe 20 percent of the population votes, but at least
19
they're informed.
20
When the population doesn't vote, who

Those that are informed, right?
So
They've educated themselves.
If you force people to vote to keep their
21
driver's license, their medical benefits, or whatever
22
social programs you've got running and you say, you will
23
vote, now who decides what they vote on?
24
buy the 30-second or one-minute ad on TV that influences
25
them.
Whoever can
The moment they walk into the booth, they go, ah,
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and pull the lever.
A very dangerous situation.
Now we have a dangerous situation.
Democracy is something that each of us have to
claim internally.
The change that people are looking
for in this group happens by a change in consciousness,
by us recognizing what we are as human beings,
recognizing the potential that we have.
know what these government programs yielded?
points to the fear side of the equation.
Because you
Everybody
But what they
10
really discovered was that every single soul, every
11
human being has this anomalous capability.
12
Now, imagine if we could awaken those
13
capabilities, could you hide anything?
14
people could literally look into the mind of another
15
person, that makes a politician pretty vulnerable,
16
wouldn't it?
17
I mean, if
That is the next evolution that I believe is
18
happening and it's the only evolution, the only
19
revolution that can change the way things are.
20
starts with human consciousness.
21
believe to be right and true and beginning to act on it.
22
Not from a foundation of fear, but a foundation of
23
confidence.
24
25
It
It starts with what we
You know, somebody asked me once, what do you

think about faith?
CATERBONE
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I said, faith is what you know to be
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right and true and you step into it on the idea that you
can achieve it.
You believe it.
So many people I've seen in this work, they
keep jumping into things beyond their belief.
don't believe they can achieve it.
and they fail, and they keep failing.
are doing good work otherwise step back, do what you can
do with confidence, do what you can do with knowledge,
don't wait for a group to form.
They try it anyway

And people who
The group's already
10
here.
It's called the human race.
11
to be right and true.
12
up, learn from it, and move forward.
13
They
Act on what you know
If you make a mistake, clean it
When you look across this room and you look at
14
all these folks with a little bit of gray hair, and
15
you've got the gray hair not by all of those great
16
things that happened in your life, but by the real
17
disasters that happened in your life.
18
think about bad news is a stimulation for good news.
19
You know, you
People ask me, you know your father's
20
disappearance, disappeared off the face of the earth,
21
that must have been a horrible thing.
22
the time.
23
life because it altered my course.
24
25
Yeah, it was at
I consider it the most important event in my
The worst things in our lives alter our course,

change our direction, activate that higher potential
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that cause us to rise out of the ashes of our apathy and
our defeats and stand on our feet again and move
forward.
The pain that people experience today is the
catalyst for the solutions tomorrow, whether we like it
or not, whether it's falling down as a two-year-old or
standing up as an adult.
our ethics, on the basis of our values, and we
reinvigorate and let go of the fear and recognize what
If we stand up on the basis of
10
we are as creative beings, we have the potential to make
11
change.
12
And with that, I'll open it to questions.
13
(Applause.)
14
15
16
17
18
19
20
21
22
23
24
25
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AMG LEGAL SYSTEMS PROTOTYPE Mastered On April 16, 1991 at Commadore Inc., January 17, 2017

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1987 Documents on CD-ROM by AMG 1991

SU= SUMMARY: Letter to Paul Lewis, of High Associates, subsidiary of

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

our planners to become stockholders in the firm,

8. To react to changes in the marketplace ahead of our competition

1987 Documents on CD-ROM by AMG 1991

Dozens of small independent planners servicing dissimilar

Life insurance and brokerage businesses are suffering from poor

1987 Documents on CD-ROM by AMG 1991

Mass marketing through corporate benefit plans and the media

charitable giving seminars.

Additionally, we will develop public awareness by constantly

We currently have many contracts for financial planners and

At the current time we know some very successful professionals

1987 Documents on CD-ROM by AMG 1991

Planners have been stable in their relationship with past

Planners are independent and thus use various planning

Investment products are predominately delivered through

1987 Documents on CD-ROM by AMG 1991

Fee-paid financial plans vary widely in price and quality and

Associated professionals such as attorneys, accountants,

1987 Documents on CD-ROM by AMG 1991

Ongoing client service is a desire for most companies in our

1987 Documents on CD-ROM by AMG 1991

Phone Handling - including the facility to forward other

Repetitive Standard Correspondence - a sample of thank

Business Processing - completed applications will be

Computer Services - financial plans and investment

Professional Networking - our in-house affiliates in law,

Supply Stocking - prospectus, applications, trust

Reference and Periodicals - professional journals and data

1987 Documents on CD-ROM by AMG 1991

Corporate Marketing - we will promote the name of our

Training and Education - Pooling our production will give

Gross Payout Negotiation - Size and strength of our group

OUR STANDARDS FOR A GREAT COMPANY

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

FINANCIALS (All Numbers in Millions of Dollars)

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

SU= SUMMARY: This letter is the reply of the Lancaster Bar

1987 Documents on CD-ROM by AMG 1991

SU= SUMMARY: Job Description of Stan Caterbone, written by Robert

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991

1987 Documents on CD-ROM by AMG 1991