(V6,P74,L10-25,P75,L1-21&25,P76,L11-25,P77,L1-23)
SMITH: "Dr. Lehrer, would you please state your full name for the record?"
LEHRER: "My name is Kenneth Eugene Lehrer. That's L-E-H-R-E-R."
SMITH: "And, sir, where do you reside?"
LEHRER: "Houston, Texas."
SMITH: "And how long have you resided in Houston?"
LEHRER: "Since 1977."
SMITH: "And what is your business?"
LEHRER: "I run my own small economic consulting company, Lehrer Financial and Economic Advisory Services. For the past 20 years until I retired recently, I taught finance on a part time basis at the University of Houston Graduate School of Business Administration."
SMITH: "Okay. Would you, for the record, give us a synopsis of your educational background in economics?"
LEHRER: "Yes, sir. I graduated from the public schools of the City of New York and then attended New York University, which is a private college located at the end of Fifth Avenue in New York City. From NYU in 1967 I received a Bachelor of Science Degree finance. In 1969 I received a Master of Business Administration Degree in banking. In 1972 I received a Master's of Arts and Economics, and on June 5th, 1980, I got my Doctorate in urban economics."
SMITH: "In the course of your education and experience, have you consulted with major businesses in the United States?"
LEHRER: "Since 1982 I have been in business for myself, and I've consulted for both the United States Federal Government during the savings and loan crisis, private corporations and governmental agencies outside the federal government, such as the State of Texas."
SMITH: "And are you on the board of directors of any organizations here in the State of Texas?'
LEHRER: "For the period 1988 through 1990 I served as chairman of the board of four savings and loans that had gone broke and had been taken - - repossessed, taken back by the United States Government, known as the Resolution Trust Corporation, and I was the chairman of the board of those savings and loans."
SMITH: "Are you board certified in any areas?. . ."
SMITH: "May we assume in that regard that you have been involved with and advised persons so far as investments in businesses?"
LEHRER: "That's correct. How I got to Houston was I worked for the then world's wealthiest Greek shipper, who is now deceased. His name was Costas Lemos. That's L-E-M-O-S. Very quiet gentleman, much richer than Onassis ever was. And I advised him on his real estate holdings and investments, and that's how I got to Houston, when he built the Bay Brook Mall, which is a regional mall outside of Houston.
SMITH: "Now, in regard to the case at hand, you have been involved in the preparation of and the study of the case the United States of America versus Allen Petty, Jr., is that correct?"
LEHRER: "Since about May or June of this year, that is correct, Counsel.
SMITH: "Okay. So you are familiar, are you not, with the allegations concerning TeleCom 2000 and its viability as a legitimate business, is that correct?"
LEHRER: "Yes, Counsel."
SMITH: "Okay. Now, were you present last week when Dr. Cunningham testified for the Government?"
LEHRER: "Yes, Counsel."
SMITH: ". . in regard to Dr. Cunningham's testimony in regard to TeleCom 2000's legitimacy, did you find that you and he had some basic disagreements?"
LEHRER: "Yes, Counsel."
SMITH: "In regard to TeleCom 2000 being a business, I think that he testified that he felt it was more a scheme than a business. Is that your understanding?"
LEHRER: "That was my recall of his testimony."
SMITH: "Okay. And would - - do you have a difference of opinion there?"
LEHRER: "Yes, Counsel."
SMITH: "Okay. And so far as TeleCom 2000 is concerned, in your opinion and with your expertise and background, what makes TeleCom 2000 a business?"
LEHRER: "A BUSINESS IS SOMETHING THAT COMES INTO BEING TO PROVIDE A GOOD OR PRODUCT OR A SERVICE. IT MIGHT NOT DO IT THE FIRST DAY IT FORMS. . . ."
(V6,P78,L17-25,P79,L1-24,P80,L8-25,P81,L1-25,P82,L1-25,P83,L2-25,P84,L1-9))
LEHRER: ". . From 1969 to 1980 I studied economics. During the period of 1963 to 1969 all major universities taught business a certain way.
However, something happened in 1980 known as the PC, the personal computer. STEVE JOBS CHANGED THE FACE OF THIS PLANET AND NEW KINDS OF TECHNOLOGY AND NEW KINDS OF WAY OF DOING BUSINESS HAVE COME INTO BEING.I'LL GIVE YOU A FAMOUS TWO AND YOU CAN ASK ABOUT THE REST. A - - "MARCHESSAULT: "Excuse me, sir. Your Honor, I would object. THIS IS NON-RESPONSIVE. THE QUESTION WAS IS TELECOM 2000 A BUSINESS."
HANNAH: "WELL, I'M GOING TO ALLOW HIM - - "
SMITH: "Your Honor - - "
HANNAH: "What were you going to say, Mr. Smith?"
SMITH: "Your Honor, I think that he should be allowed to - -"
HANNAH: "I'M ALLOWING HIM."
LEHRER: "IN 1930 WHAT TELECOM WAS DOING TODAY WAS UNHEARD OF. So - - BUT WE'RE NOT IN 1930. I WOULDN'T BE HERE IF WE WERE IN 1930.
BUT MANY THINGS HAVE COME INTO BEING SINCE 1981 WHEN STEVE JOBS INVENTED THE APPLE II, AND IF I'M ALLOWED TO GIVE YOU TWO EXAMPLES THAT ARE VERY FAMOUS, WHAT IS CALLED DERIVATIVES, THE WAY STOCKS AND BONDS ARE FORMULATED. YOU DON'T JUST SELL PREFERRED STOCK AND COMMON STOCK ANYMORE LIKE DUPONT AND GENERAL MOTORS AND FORD DID IN THE FIFTIES AND SIXTIES.CONRAD HILTON SIGNED MY MASTER'S THESIS. I HAD LONG CONVERSATIONS WITH HIM ON HOW HE FINANCED THE HILTON HOTEL EMPIRE. YOU DON'T DO IT THAT WAY ANYMORE.BY THE WAY, CONRAD HILTON IS BURIED IN DALLAS, SO HE'S A TEXAN.YOU DON'T DO BUSINESS IN 2002 THE WAY CONRAD HILTON BOUGHT THE WALDORF ASTORIA HOTEL IN 1956. IT'S JUST DIFFERENT.And what makes this case sort of interesting and easy for me is; one of the persons who has spent or raised, depending on how you look at it, about $500 million to get this message across is the DEAN OR THE RETIRED DEAN OF THE UNIVERSITY OF TEXAS SCHOOL OF BUSINESS, THE FOUNDER OF TELEDYNE, GEORGE KOZMETSKY. IF YOU GO TO THE INTERNET and type in Kozmetsky, first you've got to know how to spell it. It's K-O-Z-M-E-T-S-K-Y. YOU WILL SEE THAT PROFESSOR KOZMETSKY HAS PROFESSED OVER AND OVER FOR THE LAST 20 YEARS, YOU DON'T DO BUSINESS THE WAY CONRAD HILTON DID BUSINESS; YOU DO BUSINESS THE NEW WAY.COMMENT: NOR IN 1920 WHEN PONZI DID HIS THING!!!
That made it real easy for me in this case, because there's so much literature on the new way. And you don't have to go too far, JUST GO TO THE KOZMETSKY WEBSITE AT THE UNIVERSITY OF TEXAS.SO THIS IS A BUSINESS BASED UPON NEW WAYS OF FINANCING AND THE FACT THAT THE PRODUCTS IT SELLS WASN'T EVEN IN EXISTENCE IN 1960, CELL PHONES. CELL PHONES WERE FOR DICK TRACY IN 1960. Only Dick Tracy had a cell phone. Today everybody has a cell phone.And when you sell a product or a service cheaper than others - - and I brought some examples of my research, as - - you HAVE A COMPANY, AND THE COMPANY CREATES VALUE AND VALUE CREATES WEALTH, AND WHEN YOU CREATE WEALTH, THEY GIVE THAT A NAME AND THAT'S CALLED BUSINESS."COMMENT: THE SAME EXACT THING PRISCILLA ATTEMPTED TO EXPLAIN - CONSTANTLY INTERRUPTED!
SMITH: "Okay. In regard to the products that have been related in this trial, and I think you were out of state on yesterday and the day before, is that correct?"
LEHRER: "Yes, Counsel."
SMITH: ". . the products that have been testified to here are cell phones, long distance services, auto-dialers, commissions and the businesses. Now, if I understand you correctly, one of the essences of a business is that there is a product or service, is that correct?"
COMMENT: J.R. NEVER DID GET THE FACT OF TELECOM2000'S MARKETING IMPACT ON TELECOM2000'S OPERATION!!
LEHRER: "A product or SERVICE of value."
SMITH: ". . And do you feel like that cell phone business, long distance and these other products that are being sold has a value?"
LEHRER: "Yes, Counsel. When I was first approached in this case in May - - before I got involved in the case, I wanted to make sure that I don't look completely silly, so I did some research, and if I'm allowed to present that research, could you bring down the screen and turn on the little funny machine?
SMITH: "What is that - - are the items that you would like to see?"
LEHRER: ". . I consider myself not a genius but well-educated and frugal. I don't waste money. I got my doctoral late in life so I got to catch up.
So I pulled my own phone bill. I figured if this fella I never met named Petty is selling cell phone service for two cents, then I must be paying two or three cents. Well, my phone bill of May 31st, 2002, shows that I was paying nine cents a minute from a well-known company called Logics, and I brought the actual phone bill. This is not a copy. This is the phone bill. And I was shocked to see that I was paying nine cents and somebody else was able to sell it for two, so I figured - - "SMITH: "Do you think it would make that point, if you showed that on the overhead?"
LEHRER: "Fine. They can call all my friends if they want the numbers."
SMITH: "Your Honor, may we have the screen?"
HANNAH: "Yes."
LEHRER: ". . you can conclude that I was paying nine cents a minute.
. . I figure, well, if I'm paying nine cents and somebody from outside of Tyler is selling it for two cents, we should be able to do that. So I went on the Internet looking for a better rate. I mean, nine is almost four times two and I DON'T THINK MR. PETTY IS FOUR TIMES SMARTER THAN I AM, so I had to find something better than that. So I went on the Internet looking for a better phone bill, and if you'll publish this - - "MARCHESSAULT: "May I observe it before you publish it?"
LEHRER: "You will see from the top the date. In June I went looking for long distance service, and the best I could find is four and a half cents. And just for the benefit of this Court, my wife and I changed from Logics. We now pay about four and a quarter cents for our long distance service. So because of this case, I save four cents every minute I'm on the phone, WHICH IS A PRIME EXAMPLE OF SAVING MONEY, WHICH CREATES VALUE, WHICH IS THE ESSENCE OF A BUSINESS.
Without preaching, two guys won the Nobel Prize, Miller and Madigliani. Don't ask me how to spell Madigliani, please. Miller is Miller. And their theory is it doesn't matter how a company is financed. Its value is INDEPENDENT of its financing. You can look it up yourself. Miller and Madigliani, they won it in two different years. So it doesn't matter how you finance the long distance service. . . IT'S THE VALUE YOU CREATE THAT CREATES THE VALUE OF THE COMPANY. A COMPANY IS VALUED INDEPENDENTLY OF HOW IT'S FINANCED. ANY TEXTBOOK SINCE MILLER AND MADIGLIANI WON THE NOBEL PRIZE.Now, there's one other fact that I disagree with with the Chancellor, and with the Court's permission, could I use this little black board?"HANNAH: "Yes."
(V6,P85,L2-25,P86,L8-12,P87,L8-19,P88,L18-25,P89,excerpts L1-25)
LEHRER: "TWO THINGS NEED TO BE BROUGHT OUT THAT I DISAGREE WITH THE CHANCELLOR'S TESTIMONY. WE'LL DO ONE ON EACH GRAPH. OVER TIME, CUSTOMERS INCREASE. YOU HEARD ANOTHER LADY, DAWNA SOMEBODY, SAY THEY HAD 500 CUSTOMERS WHO BOUGHT PHONE SERVICE FROM TELECOM 2000 BUT DID NOT BUY A BUSINESS. THAT WASN'T DONE in a day. NEITHER THE CHANCELLOR NOR MYSELF GOT OUR EDUCATION IN A DAY. IT TAKES TIME.
As customers increase over time - - put them on the same graph, customers - - YOU CREATE SOMETHING CALLED STABILITY. General Motors sells nine million cars, give or take, whatever. THEY DIDN'T SELL NINE MILLION CARS IN 1910. READ THE BOOK, IT TOOK TIME.AS YOU HAVE MORE CUSTOMERS, YOUR COST OF CAPITAL GOES DOWN. YOU DON'T HAVE TO PAY AS MUCH. I'M NOT RICH, BUT I HAVE a few thousand dollars in General Motors bonds. They're paying seven and a quarter, and they're obviously guaranteed by General Motors or backed by General Motors. In 1910 General Motors was considered a risky company and they weren't paying seven and a quarter.Right now, according to testimony, TeleCom 2000 is paying between 500 and 1300 percent, BUT THAT'S ONLY FOR 179 DAYS. At the end of the 179 days, the contracts expire and a new rate of return is set, AND IT'S SET BY WHAT YOU NEED TO ATTRACT CAPITAL. . "LEHRER : "THE CHANCELLOR MADE A VERY INTERESTING CHART SHOWING THAT YOU NEED 11 TRILLION DOLLARS BY 2006. HE'S RIGHT, EXCEPT FOR THE FACT THAT HE'S WRONG IF THE RATE OF RETURN FALLS FROM 500 TO 200 TO A 150 TO 100 AND THEN LET'S SAY 70. WHY I PICK 70, I PICK TEN TIMES GENERAL MOTORS."
LEHRER: "SO MR. PETTY IS TODAY WHAT G.M. WAS IN 1910, and as he has AN INCREASE IN CUSTOMER BASE, GOVERNMENT'S EXHIBIT 81, WHICH CLEARLY SHOWS THAT, HIS COST OF CAPITAL WILL FALL AND, THEREFORE, THE 11 TRILLION DOLLARS THAT'S SUPPOSEDLY NEEDED WILL PROBABLY FALL TO LIKE 10 MILLION OR 20 MILLION, AND THAT'S A PIECE OF CAKE. THEN YOU'LL HAVE TEN TO 20,000 PEOPLE - - YOU HAVE THREE ALREADY. TEN TO 20,000 OR MORE PEOPLE USING TELECOM 2000, PAYING FEES, COMMISSIONS AND SERVICES, WHICH WILL CLEARLY BE ABLE TO BE SERVICED AT 70 PERCENT DEBT COST, AND THEN IN MY OPINION, A LOT OF WHAT WE SAID IN THESE LAST COUPLE OF WEEKS WILL HAVE BEEN WASTED BECAUSE IT WILL BE A BUSINESS. It just takes some time."
LEHRER: "THE FIRST COLUMN AFTER THE DATE SHOWS THAT IN OCTOBER OF 2000 THEY HAD $1300 IN INCOME, BY ADMISSION, I GUESS, OTHER PEOPLE. WELL, 18 MONTHS LATER OR SO, THEY HAD ABOUT 15 TIMES THAT IN INCOME, AND WHEN YOU INCREASE YOUR INCOME OVER THAT PERIOD OF TIME, I'M SURE LOU DOBBS WOULD CALL THAT GROWTH. I COULD JUST SEE LOU JUMPING UP AND DOWN NOW. THEY INCREASED THEIR INCOME 15 TIMES, GO OUT AND BUY THAT STOCK, AND HE WOULD SPEND 20 MINUTES ON THAT.
THAT IS PROOF THAT THE COMPANY WILL HAVE INCOME AND BE ABLE TO SERVICE A DEBT WITH A LOWER COST OF CAPITAL, BECAUSE COMPANIES WITH GROWING INCOME, GENERAL MOTORS, PAY LESS FOR THEIR MONEY THAN COMPANIES THAT DON'T HAVE A GROWING INCOME.AND IF YOU DON'T HAVE A GROWING INCOME, YOU GO OUT OF BUSINESS. You change your name from bank to bankrupt, or you change your name from General Motors to Studebaker. . .But on the data that I have thus far furnished to me, we know we have a growing income and we know by finance when you have a growing income, you don't have to pay 500 to 1300 percent. YOU CAN EASILY PAY 100 OR 70 PERCENT OR EVEN LOWER, FINANCE YOUR BUSINESS, PROVIDE PHONE SERVICE AT TWO CENTS AS OPPOSED TO FOUR AND A HALF OR NINE CENTS, AND THEN YOU HAVE AN ESTABLISHED COMPANY."LEHRER: "THERE IS SOME LARGE DEBT PROJECTED THAT SOME PEOPLE FEEL MR. PETTY DOES NOT HAVE THE CASH TO PAY OFF."
(V6,P93,L1&8-25,P94,L1-15&18-25,P95,L1-15&18-24,P97,L1-18,P98,L9-25,P99,L1-2)
LEHRER: "AMAZON IS DOING IT IS AN ACCEPTED BUSINESS PRACTICE."
SMITH: "So just because TeleCom 2000 doesn't have the money in the bank right now to pay off those projections that - - and some of the charts go through September, some of them go for many years - -
COMMENT: THEY DO NOT GO "FOR MANY YEARS" - 1 TO 2 YEARS MAX.
SMITH cont: THAT IS NOT IN AND OF ITSELF AN ILLEGITIMATE enterprise because they don't have the money in the bank right NOW TO PAY THE EXISTING DEBT?"
MARCHESSAULT: "Objection, Your Honor, Leading."
COMMENT: Smith's question WAS TOTALLY RELEVANT! THE BIG ISSUE THAT THE GOVERNMENT POISONED THE PUBLIC WITH, BEFORE THE TRIAL, AS WELL AS THE JURY DURING THE TRIAL, the LIE that AL PETTY "OWED $30,000,000 TO HIS 'INVESTORS'; AND THAT IT WAS ALL PAST DUE. THE TRUTH WAS THAT AL PETTY WAS NOT "PAST DUE" ON ANYTHING! However HE HAD PREPROGRAMED $30,000,000, due and payable to TELECOM2000 BUSINESS OWNERS DURING THE NEXT 2 YEARS AND THE GROWTH PROJECTION CHART SHOWED THAT HE WOULD HAVE GROSSED $96M DURING JUST THE FIRST 6 MONTHS OF THAT 2 YEAR PERIOD: THEREFORE, THE QUESTION AND ANSWER WERE TOTALLY RELEVANT.
SMITH: "Is that correct?"
HANNAH: "Well, I'm going to sustain the objection for leading, and I need to also tell the jury at this time, we've heard a lot of testimony from various witnesses about what's legal and not legal. I'll tell you what's legal and not legal and then you will decide whether or not the facts in this case make it legal or not legal. You can go ahead. Rephrase your question."
COMMENT: NOTE THAT HANNAH IS "SUBLIMINENTLY" TELLING THE JURY NOT TO BELIEVE AL PETTY'S EXPERT WITNESS! MORE JUDICIAL MISCONDUCT!
SMITH: "Dr. Lehrer, is it not common for businesses to have debts that exceed what they have in assets at the present time?"
LEHRER: "DEFINITELY, INCLUDING CONRAD HILTON."
SMITH: "Is that the exception or is that the rule?"
LEHRER: "I would say most businesses owe more than they have in cash or near cash and most households owe more than they have in cash or near cash. Most people don't buy a house with the theory of selling their car the next day to pay off the house."
SMITH: ". . SO IF I OWE MORE RIGHT NOW IN MY HOUSEHOLD THAN I HAVE IN CASH, DOES THAT MEAN THAT I CAN'T GENERATE CASH IN THE FUTURE TO PAY FOR THAT?"
LEHRER: "NO. YOU CAN GENERATE CASH, START ANOTHER ENTERPRISE, AND/OR REFI OVER THE TERM OF THE OBLIGATION."
SMITH: "AND IS THAT IN FACT THE PRACTICE THAT TELECOM IS INVOLVED IN AS WE SPEAK OR PRIOR TO APRIL 4TH?"
LEHRER: "Yes, sir. TeleCom is a new enterprise or a relatively new enterprise."
SMITH: "OKAY. AND WHEN DR. CUNNINGHAM SAYS THAT THIS IS A SCHEME RATHER THAN A BUSINESS, WHAT IS YOUR REACTION TO THAT?"
LEHRER: "IF DR. CUNNINGHAM IS CORRECT, THEN YOU NEED TO SHUT DOWN ALL THE BROKERAGE FIRMS IN WALLSTREET THAT EARN A LOT OF MONEY PER YEAR PER EMPLOYEE FOR REFI-ING BIGGER, BETTER KNOWN COMPANIES THAN TELECOM 2000. JUST BECAUSE TELECOM IS SMALL DOESN'T MEAN THEY'RE NOT FOLLOWING WHAT GOLDMAN SAXON, MERRILL-LYNCH AND SOLOMON BROTHERS AND BEARSTERNS DO FOR BIGGER COMPANIES."
SMITH: "Do you have an opinion based upon reasonable economic principles and your education and your experience as to whether or not TeleCom 2000 is a viable company?"
LEHRER: "Yes, Counsel."
SMITH: "And what is that opinion?"
LEHRER: "BASED UPON GENERALLY ACCEPTED CORPORATE FINANCE AND ECONOMIC PRINCIPLES AND THE FACT IT HAS A GROWING INCOME WITH A PRODUCT AND A SERVICE THAT CREATES WEALTH - - TWO CENTS IS LESS THAN NINE CENTS BY A LOT - - AN ONGOING BUSINESS THAT HAS BEEN TEMPORARILY INTERRUPTED BY FORCES. BUT IF THEY WERE LEFT UNINTERRUPTED, THEN THE NUMBERS WOULD BE EVEN LARGER. THEIR COST OF CAPITAL WOULD HAVE FALLEN AND THEY WOULD BE A BUSINESS THAT GENERATES A PROFIT.
SMITH: ". . Being a frugal person and having access to the documentation you have in TeleCom 2000, would you invest in this company?"
LEHRER: "Yes. I wouldn't put my whole life savings in it. I didn't put my whole life savings in General Motors. But a portion of my portfolio, which is smaller than Bill Gates is, you could put in TeleCom and earn a rate of return."
LEHRER: " . . Internet. You don't have to go buy it. You can just print it out for free and it's kind of interesting.
. . he wrote a book that was published by the University of Texas called "Zero Time". It was released in July of 2000, which is a relatively new book. And if you could publish this quote, which is from Dr. Kozmetzky, I would appreciate it. It's highlighted in yellow, Counsel."SMITH: "Okay."
LEHRER: ". . This is from a two page article on the Website of the University of Texas, the Kozmetzky section. "THERE'S NO SENSE IN GOING INTO A MARKET THAT DOESN'T GIVE YOU CASH FLOW RIGHT AWAY, BECAUSE YOU'RE DEAD IF YOU DO".
SO TELECOM 2000 DOES EXACTLY WHAT KOZMETZKY SAYS TO DO. GO INTO A NEW BUSINESS THAT GIVES YOU CASH FLOW RIGHT AWAY. AND FOR DR. KOZMETZKY'S BOSS - - I ASSUME THE CHANCELLOR IS THE BOSS OF A PROFESSOR OR A DEAN - - TO TAKE THE $500 MILLION AND THEN COME INTO COURT AND SAY IT DOESN'T APPLY, IT'S A LITTLE STRANGE, BUT I'M SURE WE'LL FIND OUT WHY.COMMENT: THE REASON CUNNINGHAM WOULD CONTRADICT THE "PRINCIPLES OF SUCCESSFUL BUSINESSES" EXPOUNDED BY HIS GREAT MENTOR, DR. KOZMETSKY, WAS THAT "CON-MAN-CUNNINGHAM" HAD NO CONSCIENCE WHEN IT CAME TO LYING TO ENSURE THAT HE "EARNED HIS KEEP" IN THE CONSPIRACY WITH THE PROSECUTION TO CONVICT AL PETTY.
LEHRER: "What else did I hear from Chancellor Cunningham that aroused my curiosity from his testimony.
HANNAH: "All right."
LEHRER: "And the answer in one word is the Kozmetzky legacy."
MARCHESSAULT: "Your Honor, this is very interesting, but I don't know the relevance."
HANNAH: "I'll sustain the objection."
COMMENT: WOW! IF NOT FOR KOZMETSKY, CUNNINGHAM WOULD NOT HAVE BEEN THE GOVERNMENT'S EXPERT WITNESS!! THAT'S RELEVANT, AS WELL AS KOZMETZKY'S QUOTES ON SUCCESSFUL BUSINESS POLICIES!.
SMITH: "SO IF I UNDERSTAND IT, THE GIST OF YOUR TESTIMONY IS THAT DR. KOZMETZKY ADVOCATES THE VERY TYPE OF BUSINESS THAT TELECOM 2000 IS AT THIS TIME, IS THAT CORRECT?"
LEHRER: "HE ADVOCATES IT AND IT'S TAUGHT AT THE UNIVERSITY OF TEXAS GRADUATE SCHOOL OF BUSINESS AND THE IC2 CENTER, AND ASSUMING CLASS IS ON TODAY, WHATEVER TODAY IS, THEY'RE TEACHING IT RIGHT NOW IN AUSTIN."
CROSS EXAMINATION BY MR. MARCHESSAULT
(V6,P107,L12-13&19-25,P108,L1,P113,L1-5&13-21,P119,L9-23)
MARCHESSAULT: "According to that, what does Mr. Petty say his product is?"
LEHRER: "It's to buy a business that allows you to sell a service and a product. He sort of wraps them together."
COMMENT: THE CONTRACT IS ALL INCLUSIVE: L.D., CELL AND MARKETING, ETC!
MARCHESSAULT: " . . And if this jury were to find that his - - that the business that he is marketing is a fraudulent scheme, then what he is promising to market is the sale of a fraudulent scheme to the people that he has sold his businesses to."
LEHRER: "Well, if - - NO, IT CAN'T BE FRAUDULENT BECAUSE IF I'M PAYING NINE CENTS A MINUTE AND HE'S SELLING IT FOR TWO - - "
MARCHESSAULT: "Sir, I'm not asking - - "
COMMENT: THAT WAS EXACTLY WHAT MARCHESSAULT WAS ASKING, BUT IT WASN'T THE ANSWER HE HOPED TO GET TO CONTINUE TO DECEIVE THE JURY.
LEHRER: "You can't say that two is greater than nine."
LEHRER: "YOU CANNOT, UNDER ANY NORMAL RELATIVELY ACCEPTABLE DEFINITION OF A PONZI, BE A PONZI BECAUSE YOU'RE PROVIDING A SERVICE THAT'S GENERATING AN INCOME. YOU'RE JUST NOT GENERATING AN INCOME ENOUGH YET."
LEHRER: "PONZI DIDN'T HAVE A PRODUCT. HE WAS USING GOVERNMENT - - GOVERNMENT SCRIPT TO CREATE. NO ONE USES GOVERNMENT SCRIPT AS A PRODUCT. I DON'T CONSIDER PUTTING CHANGE IN MY POCKET A PRODUCT. A PRODUCT FOR GOOD OR SERVICE IS LIKE CARS, TABLES, CHAIRS, FOOD, CELL PHONE SERVICE, NOT BROKERING OR ARBITRAGING, IF YOU WANT TO BE REAL FANCY, GOVERNMENT SCRIPT. THAT IS NOT A PRODUCT OR A SERVICE. IT DOESN'T GO INTO THE GROSS NATIONAL PRODUCT NUMBERS, AND IF IT DOESN'T GO INTO THE GROSS NATIONAL PRODUCT NUMBERS, IT'S NOT A PRODUCT BY DEFINITION."
MARCHESSAULT: "LET'S TALK ABOUT CELL PHONES FIRST. HE ONLY GETS A ONE time $50 commission, regardless of the cost of the phone service."
LEHRER: "That's my understanding."
MARCHESSAULT: "He doesn't benefit if the cell phone service to the folks in the audience is one cents per minute or $1 per minute."
LEHRER: "That's not true at all. HE GETS CUSTOMERS. WHY DO YOU THINK GENERAL MOTORS IS GIVING ZERO FINANCING. THEY'RE REDUCING THE PRICE TO GET CUSTOMERS. SO IF THE CELL PHONE SERVICE IS A PENNY, HE GETS A LOT MORE CUSTOMERS THAN IF THE CELL PHONE SERVICE IS A DOLLAR."
COMMENT: G.M. IS "GIVING THE FINANCING AWAY" UTILIZING THE SAME PRINCIPLE THAT ENABLED AL PETTY TO "GIVE" THE L.D. AND CELL PHONE SERVICE AWAY! BUY THE CAR AND GET THE FINANCING FREE! AL PETTY'S FORMULA "PAY FOR THE BUSINESS, INCLUDING THE ADVERTIZING AND MARKETING, AND GET THE L.D. AND CELL PHONE FREE!" "A" TURNKEY "PACKAGE"!
LEHRER: "HE WOULD GET MORE CUSTOMERS. IT ALLOWS YOU TO GROW THE BASE."
COMMENT: IN THE SAME WAY "GETTING THE FINANCING FREE" SELLS MORE CARS, AND GETS MORE CUSTOMERS IN THE MARKETPLACE, AL PETTY SOLD MORE BUSINESSES AND GOT MORE CUSTOMERS BY GIVING L.D. AND CELL AWAY IN MARKET SPACE. NO DIFFERENCE IN FORMULA!
(V6,P120,L5-9&18-25,P121,L3-7&12-19,P124,L4-7&24-25,P125,L1-14)
MARCHESSAULT: ". . He's only making money from the commissions."
LEHRER: "BUT THAT'S ONLY HALF BAKED. YOU DON'T GET THE COMMISSIONS UNLESS YOU HAVE A VARIABLE IN PRICE. GENERAL MOTORS IS NOT GOING TO SELL CARS UNLESS THEY GIVE IT ZERO FINANCING."
MARCHESSAULT: ". . WE KNOW IN THIS CASE HE GOT $223,000 IN COMMISSIONS AND PAID OUT OVER $8 MILLION IN PAYMENTS TO HIS CUSTOMERS OR TTN MEMBERS."
LEHRER: "MILLER AND MADIGLIANI (Note: NOBEL PRIZE WINNERS!) WOULD SAY THAT'S FINE."
MARCHESSAULT: "SIR, I DON'T CARE WHAT THEY SAY. I'M ASKING YOU IF THAT'S THE TRUTH."
LEHRER: "THAT'S THE TRUTH, BECAUSE HOW YOU FINANCE YOUR BUSINESS IS INDEPENDENT OF THE ITS VALUE."
COMMENT: NOTICE THE DIFFERENCE IN THE WAY HANNAH TREATED LEHRER AND CUNNINGHAM!
LEHRER: "I'M TRYING TO FOLLOW YOU. I JUST DON'T WANT YOU TO SAY THAT JUST BECAUSE YOU PAID OUT EIGHT MILLION - -"
HANNAH: "WELL, HE JUST ASKED YOU A QUESTION, WHICH WAS - - GAVE YOU SOME FIGURES AND ASKED YOU WAS THAT TRUE, DOCTOR, SO THAT WAS THE ANSWER."
COMMENT: THE DECEITFUL QUESTION IS WHAT I WANT YOU TO ANSWER. THE TRUTH DOESN'T MATTER! (JUDGE HANNAH)
LEHRER: "That's what the evidence has noted thus far."
MARCHESSAULT: ". . then you reference that over time he will reduce that interest rate, 400, 300, 200, 100, and THEN YOU THOUGHT THAT WHAT HE WOULD SETTLE ON IS 70 PERCENT."
LEHRER: "I DIDN'T SAY HE WOULD "SETTLE ON IT". I GAVE IT AS AN EXAMPLE IN A COURT OF LAW THAT THAT WOULD BE A REASONABLE NUMBER TO SETTLE."
MARCHESSAULT: "I DON'T WANT TO MISCHARACTERIZE YOUR TESTIMONY."
COMMENT: ANOTHER LIE TO THE JURY TO COVER THE LAST LIE!
MARCHESSAULT: ". . HE GIVES AWAY FREE LONG DISTANCE AND FREE CELL PHONE SERVICE. THAT'S ALSO YOUR UNDERSTANDING, IS THAT CORRECT, SIR?"
COMMENT: JUST AS G.M. SELLS YOU A CAR, THEN GIVES YOU THE FINANCING FREE. THEY MAKE NO MONEY FROM FINANCING! DOES THIS MEAN THE GOVERNMENT SHOULD SHUT THE FINANCING AND CAR MANUFACTURER DOWN?
LEHRER: "THAT'S CORRECT."
LEHRER: "Without going afield, in 1910, sir, there were no highways. People were buying cars with no place to drive them, so it was considered risky, okay? SO THEY HAD TO GIVE AN INCENTIVE. THEY'RE STILL GIVING INCENTIVES 70 YEARS LATER. THEY'RE GIVING ZERO FINANCING. SO TO GIVE AN INCENTIVE DOES NOT MAKE IT AN INCORRECT METHOD OF DOING BUSINESS."
MARCHESSAULT: "BUT THEY DON'T GIVE THE CARS AWAY FOR FREE, SIR, DO THEY?
COMMENT: THEY GIVE THE FINANCING AWAY! NORMAL 10-20% FINANCING ON A 30K CAR COULD BE $20K!! THAT'S QUITE AN INCENTIVE! THE "30K CAR" COSTS YOU $10K!!!
LEHRER: "They don't give them for free, no.
MARCHESSAULT: "Mr. Petty gave away free long distance and free cell phones, didn't he, sir?"
LEHRER: "It's for a limited period, not forever."
MARCHESSAULT: "Oh, well, I stand corrected. Only for two years though."
LEHRER: ". THAT'S IN PLACE OF MARKETING. HE DOESN'T TAKE THE BACK COVER OF FORTUNE MAGAZINE WITH $3 MILLION TO ADVERTISE. HE GIVES IT AWAY FREE AND YOU BRING IN OTHER CUSTOMERS AND CLIENTS AND EVENTUALLY YOU HAVE ENOUGH OF THESE PEOPLE."
(V6,P128,L14-25,P134,L10-25,P138,L3-8,P139,L14-21,P140,L2-5&16-22)
HANNAH: "WELL, I'M ALSO - - HE MIGHT HAVE BEEN argumentative and I'll sustain your objection, but once again, I'm going to tell the witness to answer the questions as directly as you can. There's Mr. Smith there to ask you things on cross-examination or redirect if he needs to."
SMITH: "WITH ALL DUE RESPECT, YOUR HONOR, HE'S TRYING TO CONFINE THE WITNESS TO WHAT HE WANTS TO HEAR, NOT TO WHAT THE QUESTION IS ASKED."
HANNAH: ". . THE WAY I INTERPRET IT, MR. SMITH, I DISAGREE WITH YOU. I THINK HE'S ASKING A QUESTION AND GETTING RUN AROUND THE BUSH."
COMMENT: THIS TOTALLY INAPPROPRIATE "OPINION" BY THE JUDGE COULD, IN THE MINDS OF SOME JURORS, CONVICT AL PETTY, AGAINST ALL EVIDENCE AND TESTIMONY OF HIS INNOCENCE!
MARCHESSAULT: ". . How about putting cashier's checks in a safety deposit box, is that a good, normal business practice?"
LEHRER: "Not in Manhattan but in Overton, Texas it might be because it's a little more dangerous in Overton where it's out in the prairie than in Manhattan. So I can't answer to what's normal in Overton, Texas. I've never been there."
MARCHESSAULT: ". . you think that it's a normal business practice to put cashier's checks in safety deposit boxes?"
LEHRER: "I'll give you the proof of that. When the World Trade Center - -
COMMENT: "CUNNINGHAM WOULD HAVE BEEN ALLOWED BY THE JUDGE TO "GIVE THE PROOF"!
MARCHESSAULT: "I'm just asking, sir - -"
LEHRER: "YES, IT'S HAPPENED MANY TIMES."
MARCHESSAULT: "Many times?"
LEHRER: "YES."
SMITH: "I KNOW YOU LEFT FOR A PERIOD OF TIME TO TESTIFY IN OTHER STATES. I WANT TO MAKE SURE YOU WERE PRESENT."
LEHRER: "I DID NOT TESTIFY IN ANOTHER CASE. THAT IS INCORRECT."
SMITH: "Well, then I was misadvised. I know that you absented the courtroom for - - "
COMMENT: ANOTHER LIE BY J. R. SMITH!
LEHRER: "A PREVIOUS ENGAGEMENT NOT RELATING TO COURTS OF LAW."
SMITH: "IS IT A NORMAL BUSINESS PRACTICE TO INVEST WITH A COMPANY SUCH AS EVOCASH?"
LEHRER: "HERE WE GO AGAIN. WE'RE BACK TO NEW ECONOMY AND NEW TECHNOLOGY. THE ANSWER TO YOUR QUESTION, IN 1930, NO; IN 2002, MAYBE."
SMITH: "Maybe?"
LEHRER: "THERE ARE OTHERS DOING IT. MR. PETTY AND TELECOM 2000 ARE NOT THE ONLY ONES."
LEHRER: "EVOCASH HAS MORE THAN ONE CUSTOMER, SO THERE'S LOTS OF PEOPLE DOING THIS AND THAT MAKES IT, QUOTE, IN YOUR WORDS, NORMAL. IF A LOT OF PEOPLE DO IT, THEN IT'S NORMAL."
MARCHESSAULT: "You were present for Dr. Cunningham's testimony?"
LEHRER: "Yes, sir."
MARCHESSAULT: "This is his assumptions chart. Any problems with the numbers here?"
LEHRER: "Again, we're based - - that contract is based upon 500 to 1300 percent."
MARCHESSAULT: "No, sir, it's not."
COMMENT: ANOTHER LIE. IT ABSOLUTELY WAS BASED ON 500 - 1300 % RETURN! NOT INTEREST!
(V6,P142,L12-19,P144,L14-25,P145,L1-2&5-25,P146,L2-25)
MARCHESSAULT: "Well, you don't object to his actual drawing of the graph, the information contained. It's accurate based on his analysis?"
LEHRER: "I CAN'T LET THIS OPPORTUNITY GO. HIS ANALYSIS IS NOT NORMAL."
MARCHESSAULT: "AND THEN, OF COURSE, YOU REMEMBER THE ACTUAL PONZI COMPARISON TO MR. PETTY'S EVIDENCE?"
LEHRER: "YES."
MARCHESSAULT: ". . DO YOU AGREE THAT 500 TO A THOUSAND PERCENT OR 1100 HERE IS A LARGE RETURN?"
LEHRER: "IT'S A LARGE RETURN AT CERTAIN TIMES."
MARCHESSAULT: "Okay. I take it we're going to have a difference of opinion as to the existence of a sham business and I'm not going to waste the jury's time. Would you agree we'll disagree on that?"
LEHRER: "STAMPS IS NOT A PRODUCT."
MARCHESSAULT: "Okay."
LEHRER: "TELEPHONE SERVICE IS."
COMMENT: CUNNINGHAM DREW UP A DECEPTIVE CHART TO ATTEMPT TO PROVE THAT AL PETTY AND CHARLES PONZI HAD A LOT IN COMMON. BELOW IS A 'CONVERSATION' RELATING TO SOME OF THE 'ABSURDITIES' IN THAT MISLEADING CHART.
MARCHESSAULT: "YOU AGREE THAT MR. PETTY IS CHARISMATIC OR NOT? YES OR NO. THAT'S FINE."
LEHRER: "I WOULDN'T SAY HE'S ANY MORE CHARISMATIC THAN OTHER BUSINESS MEN."
COMMENT: CAN YOU IMAGINE ANYONE SAYING THAT - BECAUSE AL PETTY AND PONZI WERE BOTH "CHARISMATIC", AL PETTY WAS ALSO A CROOK?
COMMENT: NEXT CUNNINGHAM CLAIMS THAT PERSONS WHO HAVE "HAPPY EARLY CUSTOMERS" ARE DISHONEST.
MARCHESSAULT: "How about happy early customers, did you ever look at the two videos, each one two hours in length, called "Testimonials Part One", "Testimonials Part Two"?"
LEHRER: "No, sir."
MARCHESSAULT: "Okay. I know you were not in the courtroom yesterday but you may have heard what testimony was offered. Would you agree there were happy early customers?"
LEHRER: "I heard some of them, yes, sir."
COMMENT: IF A BUSINESS DOES "NOT HAVE" HAPPY EARLY CUSTOMERS THEY ARE NOT LIKELY TO HAVE ANY "LATER CUSTOMERS"!
MARCHESSAULT: "HOW ABOUT DIFFICULTY IN JOINING THE PROGRAM, WOULD WE AGREE ON THAT?"
COMMENT: NEXT THING ON CUNNINGHAM'S "PONZI-PETTY CHART" WAS THAT AL PETTY "MADE IT HARD" FOR PERSONS TO 'INVEST' IN TELECOM2000! Question: Are all schools, colleges and training facilities ILLEGAL because they establish a certain criteria before giving diplomas, PHD's, DOCTORATES, Degrees & certificates? Of course not! Nor was the fact Al Petty REQUIRED listening to a 14 minute call and a 2 Hour conference call, illegal!
LEHRER: "NO. IF YOU - - GOING ON A CONFERENCE CALL AND RECEIVING FAXES IS NOT DIFFICULT. AND IF MR. PETTY DIDN'T HAVE SOME TRAINING, A COURT OF LAW WOULD SAY HE DIDN'T TRAIN THESE PEOPLE. So it sounds like my ex-wife, no matter which way, it's wrong. HE WAS TRAINING HIS PEOPLE BECAUSE THIS IS AN ONGOING BUSINESS. I DON'T FIND THAT EVEN RELEVANT TO PONZI."
MARCHESSAULT: ". . "In fact, I won't even allow anybody in my business. That's how exclusive we are, unless they get on that call". Right? Is that what it says?"
LEHRER: "THAT'S FINE. YOU DON'T - - YOU DON'T WANT JUST ANYBODY."
MARCHESSAULT: "Sir, the question was is that what it said?"
LEHRER: "That's what it said."
COMMENT: In other words, Marchessault was saying that listening to a 14 minute Toll-Free call plus a 2 hour conference call was "making it too hard" for a person to get into a business that could pay them $10-20,000 or more per month!
MARCHESSAULT: ". . this is Mr. Petty who said this to Mr. Wilson. "Mark, I can either take time to talk to you about this or I can get your checks out. Which one do you want"? Of course, there was laughter and then the response by Mr. Petty: "That's a no brainer, but I wish you would think of that". What do you think?"
COMMENT: Another 'feature' of Cunningham's Deceptive chart was that, because Ponzi 'appeared' to be busy and that Al Petty 'appeared' to be busy, Al Petty was also running a Ponzi Scheme. I know it's hard to believe, but CUNNINGHAM actually resorted to these 'absurd-relatives' in his chart. And apparently his FRAUD DID deceive the Jury into rendering a Guilty Verdict!
LEHRER: "IF EVERYBODY WHO EVER REFUSED TO TALK TO ME ON THE PHONE WAS PUT IN YOUR COURT OF LAW, WE WOULD HAVE A VERY BUSY COURT. SO I DON'T THINK THE COMPLEXITY OF THE BUSINESS AND THE AVAILABILITY OF THE CEO IS CORRELATED IN ANY WAY."
MARCHESSAULT: "Were you aware yesterday that a number of TeleCom 2000 investors or, as they characterize themselves, business owners, testified? Were you aware of that?"
LEHRER: "I understand yesterday there were business owners. ."
(V6,P147,L2-4&15-23,P148,L9-19,P149,L11-13&21-25,P150,L1-25,P151,L6-24)
MARCHESSAULT: " . . are you aware that not one of them understood how the money was being generated that they were being paid with? Are you aware of that?"
COMMENT: ANOTHER LIE! NADEAU WAS NOT GIVEN THE OPPORTUNITY TO EXPLAIN, HOWEVER BARDES DID A GREAT JOB, AS FAR AS ALLOWED BY THE JUDGE AND J.R. SMITH!
HANNAH: ". . We intend, as you've heard, per the jury's request (?), to go late tonight. Everyone understands that, do they not?"
COMMENT: IF THE JURY "REQUESTED" TO "GO LATE", IT WAS BECAUSE OF HANNAH'S REPEATED MENTIONING OF "HOPING TO FINISH FRIDAY", "MAY HAVE TO WORK SATURDAY", AT THE SAME TIME HE WAS TELLING THE DEFENSE HE "HAD A BIG PROBLEM", THAT HE "HAD TO BE" SOMEWHERE THURSDAY!
KENNER: "Yes."
HANNAH: "That means if we get down - - through with the witnesses and it's still before six or seven o'clock, we'll do the jury charge and closing arguments. Everyone understand that?"
HANNAH: "Anything else we need to take up before I bring the jury in?"
SMITH: "YES, YOUR HONOR. I HOPE THE COURT RECOGNIZES THE ENORMOUS RESPECT I HAVE FOR THIS COURT. HOWEVER, ON BEHALF OF MY CLIENT, ALLEN PETTY, JR., I RESPECTFULLY MOVE FOR A MISTRIAL BASED UPON THE COURT'S COMMENTS REGARDING DEFENDANT'S EXPERT WITNESSES, WITH PARTICULARITY THAT HE WAS, QUOTE, "RUNNING AROUND THE BUSH", AND QUOTE, "IN RELATION TO HIS RESPONSES TO THE GOVERNMENT'S QUESTIONS".
HANNAH: "OKAY. YOUR MOTION IS DENIED".
REDIRECT EXAMINATION BY MR. SMITH
SMITH: "You began to testify about a meeting you had with Mr. Petty in the beginning before I was a part of this case, is that correct?"
LEHRER: ". . I discussed with Mr. Petty the fact that 1300 percent doesn't fly forever, and we discussed the fact that it was his intention and his - - "
MARCHESSAULT: "Objection, Your Honor, hearsay."
HANNAH: "Sustain the objection. Ask the jury to disregard."
COMMENT: THE JUDGE'S PREJUDICE INTENSIFIES! THE JUDGE HAD ADVISED J.R.S. THAT HE WOULD HAVE OPPORTUNITY TO CLARIFY THESE TYPE ISSUES ON RE-DIRECT! NOW HE DENIES THE OPPORTUNITY! MORE JUDICIAL MISCONDUCT!
SMITH: "It's a statement made directly by the Defendant, Your Honor."
HANNAH: "That's right but it's not an admission against interests."???
SMITH: "Dr. Lehrer, also WHEN THE GOVERNMENT WAS ASKING YOU ABOUT CHECKS BEING KEPT IN A SAFETY DEPOSIT BOX, YOU STARTED TO SAY SOMETHING ABOUT THE WORLD TRADE CENTER. DO YOU WANT TO COMPLETE THAT THOUGHT?"
LEHRER: "YES. WHEN THE UNFORTUNATE EVENTS OF 9-11 CAME INTO BEING, THE PUBLIC LEARNED THAT SIGNIFICANT COMPANIES IN THE WORLD TRADE CENTER KEPT IN SAFETY DEPOSIT BOXES SIGNIFICANT AMOUNTS OF CHECKS, CASHIER'S CHECKS AND NEGOTIABLE INSTRUMENTS, AND THUS, WE CAN CONCLUDE BASED UPON THOSE LARGE, WELL-ESTABLISHED COMPANIES IN THE WORLD TRADE TOWERS THAT IT IS, QUOTE, "NORMAL" AND STANDARD PRACTICES IN BUSINESS TO KEEP A RESERVE OF CASHIER'S AND CERTIFIED CHECKS AND NEGOTIABLE INSTRUMENTS. SMITH BARNEY DID IT. MERRILL LYNCH DID IT. CANTON FITZGERALD DID IT. THE SWISS BANKS DID IT. SO I GUESS THAT IS WHAT COUNSEL WOULD CALL "NORMAL".
SMITH: "That's all I have, Your Honor."
COMMENT: WOW! EVERYONE, (SMITH AND HANNAH), WANTS TO HUNT DEER ON THURSDAY! SO MUCH MORE TO BE DISCUSSED THAT HANNAH ACCUSED LEHRER OF "RUNNING AROUND THE BUSH" ON! IF SMITH HAD OPENED THESE "DOORS OF DISCUSSION", IT WOULD HAVE ADDED "WEIGHT" TO HIS MOTION FOR MISTRIAL. BY NOT DOING SO, WEIGHT IS ADDED TO "COUNSEL INEFFICIENCY"!
RECROSS EXAMINATION BY MR. MARCHESSAULT.
MARCHESSAULT: "HAVE YOU LOOKED AT ANY OF THE CASHIER'S CHECKS THAT WERE TAKEN FROM THE FED EX ENVELOPES THAT ARE IN EVIDENCE, XEROXED COPIES OF THEM?"
COMMENT: ANOTHER DECEPTIVE ATTEMPT BY GREGG MARCHESSAULT TO IMPLY THAT CASHIER'S CHECKS WERE HELD FOR 60-90 DAYS WHEN 7-20 DAYS WERE HELD!
LEHRER: "THE WORD ANY, I WOULD HAVE TO SAY YES. NOT THOUSANDS BUT SOME, YES."
MARCHESSAULT: "THEN YOU WOULD HAVE SEEN ON THEM SOME OF THEM WERE MARKED GOOD FOR 60 TO 90 DAYS ONLY BEFORE THEY EXPIRED. THEY HAVE A 60 TO 90 DAY TIME PERIOD THAT THEY HAVE TO BE DEPOSITED."
LEHRER: "THE FINANCIAL INSTITUTION ISSUING THE CHECK PUTS THAT ON THERE, NOT THE PERSON. THAT IS CORRECT, COUNSEL.
MARCHESSAULT: "IF YOU PUT A CASHIER'S CHECK IN A SAFETY DEPOSIT BOX THAT IS ONLY GOOD FOR 60 DAYS AND IT WAS IN THERE FOR NINE MONTHS (WHAT A LIE!!), WHAT WOULD HAPPEN, DOCTOR?"
COMMENT: HOW could John Smith ALLOW this "LIE-INFERENCE" that Al Petty left cashiers checks in drawers for 9 months, as opposed to 7-20 days, to be entered into the trial record and THE MINDS OF THE JURORS.
1) Lie by Marchessault
2) Inefficiency by John R. Smith
3) Judicial Misconduct By Hannah
LEHRER: "That check has to be sent back to the issuing institution and a new check has to be issued."
MARCHESSAULT: "Couldn't be negotiated, could it?"
LEHRER: "It could not be negotiated in a normal stream of business and commerce."
