PATRICK HENRY, DEFENDANTS'S WITNESS
DIRECT EXAMINATION BY MR. SMITH
(V5,P247-248,L22-25,L1&7-18)

SMITH: "Mr. Henry, would you please state your full name for the record?"

HENRY: "Patrick Henry."

SMITH: "And, Mr. Henry, where do you reside?"

HENRY: "Stafford, Arizona."

SMITH: "How did you get to Tyler, Texas?"

HENRY: "I drove my car over here."

SMITH: "How long have you been here?"

HENRY: "I - - I came into Tyler a week ago Sunday night."

SMITH: "Are you paying your own expenses?"

HENRY: "Yes."

SMITH: ". . Are you here under any type of subpoena or anything from Al Petty or TeleCom 2000?"

HENRY: "Not really.  He asked if people could come here who would be willing to come to the trial, and so I decided certainly I will come.  He didn't - - No, not a real subpoena that I would think of."

(V5,P250,L1-21,P251,L5-15)

SMITH: ". . tell us briefly how did you first hear about or come into contact with TeleCom 2000?'

HENRY: "I was . . . talking to a lady .  .  . this lady at that time was already in TeleCom 2000 Network. . . I was paying a higher phone bill, and somehow the conversation came about that and she mentioned - - that's the first time I heard about TeleCom 2000 Network.

She happened to do a three-way call to another individual that was in the program at the time.  And he didn't really explain the program too much but just told me he had received some checks that week and so on.

And that lady - - so he gave me the 800 number that you call and listen to for about 14 or 15 minutes or whatever.  I LISTENED TO THAT CALL I THINK TWO OR THREE OR FOUR TIMES AND IT SOUNDED VERY INFORMATIVE SO I GOT ON SEVERAL CONFERENCE CALLS and decided, well, if I could get telephone service with these other - - I was on the phone quite a bit at the time.  Said, well, that's certainly worth my time to check into and get involved with."

HENRY: ". . I did not check with like the local police or the FBI or the Better Business Bureau or anybody like that.  No, I did not take that route because what I heard, what I saw, a good place to get, you know, a very economical price for telephone service.  Why check into something else?  It was a good business sound to me so that was my decision."

SMITH: "So YOUR BASIC ATTRACTION TO TELECOM 2000 WAS THEIR LONG DISTANCE TELEPHONE RATES?"

COMMENT: CUNNINGHAM'S "NO PRODUCT"!!

HENRY: "IT WAS CERTAINLY A GREAT PART OF IT, BECAUSE EVEN IF NOTHING ELSE CAME THROUGH, I WOULD STILL SAVE A LOT OF MONEY JUST ON THE TELEPHONE SERVICE."

COMMENT: CLEARLY DEMONSTRATING THE IMPORTANCE OF PRODUCT, AS OPPOSED TO A PONZI SCHEME, AS ACCUSED.

(V5,P253-254,L16-25,L1-2)

HENRY: ". . there was another schedule that told basically, you know, how many days apart the checks would come and all those checks seemed to arrive at that time that they were supposed to arrive at my doorstep or my mail box."

SMITH: "You got the checks, took them to the bank and cashed them or deposited them, good checks?"

HENRY: "Every one of them was a good check."

SMITH: "Okay.  And so would it be safe to say that the first six month period, that first contract or the contracts that you had, are successful so far as - - "

HENRY: "ABSOLUTELY.  I MEAN, EVERYTHING WAS JUST AS IT WAS SUPPOSED TO BE AS FAR AS I COULD TELL."

(V5,P255-257,L15-25,L1&12-25,L1-2,L13-19)

SMITH: ". . YOU ARE AWARE OR HAVE BEEN MADE AWARE, HAVE YOU NOT, THAT ON FEBRUARY 4TH ALL THE FUNDS OF TELECOM 2000 WERE FROZEN?"

HENRY: "On February 4th?"

COMMENT: ONCE AGAIN JOHN R. SMITH DISPLAYS HIS COUNSEL INEFFICIENCY!

SMITH: "I mean April 4th.  I'm sorry."

HENRY: "Yes, April 4th, that's - - yes, sir."

SMITH: "AND AS WE SPEAK HERE TODAY, DO YOU HAVE ASSETS THAT ARE IN THE PROCESS THAT HAVE BEEN FROZEN?"

HENRY: "ABSOLUTELY."

SMITH: "Okay.  Do you have any idea about how much money you have in that regard?"

HENRY: "You mean if everything would have been paid out by now or frozen by April 4th?"

HENRY: "It would be -  - I don't have it exactly counted up, but it would be over $300,000 that is due to receive right now if all the funds were unfrozen and it was available to me, counting the businesses I bought plus the people I sponsored that I would receive money from.  Well, I would estimate maybe $310,000.  I don't have it counted up because that's - - wasn't important to count if it's not coming."

SMITH: "OKAY.  DO YOU -  - IN REGARD TO YOUR ASSOCIATION WITH MR. PETTY, HAVE YOU FOUND HIM TO BE HONEST AND FORTHRIGHT TO YOU?"

HENRY: "IN EVERY WAY SO FAR.  I HAVE NOT CAUGHT HIM DOING ONE ILLEGAL OR ANY UNDERHANDED THING TO MYSELF."

SMITH: "OKAY.  IN BEING A BUSINESS OWNER IN TELECOM 2000, DID YOU EVER CONSIDER YOURSELF TO BE INVOLVED IN ANY TYPE OF UNLAWFUL SCHEME OR UNLAWFUL ACTIVITY?"

HENRY: "NO, SIR."

HENRY: "AL PETTY HIMSELF WROTE ME A PERSONAL CHECK THAT I KIND OF MISSED SOME OF MY PAYMENTS ON THE FIRST MAN I SPONSORED IN.  WHEN AL PETTY REALIZED THAT, HE WROTE ME A PERSONAL CHECK IN THE AMOUNT, CAUGHT ME UP EXACTLY TO DATE FOR THAT SERVICE, AND THAT'S WHAT HE'S DONE TO OTHER PEOPLE.  AND I TRULY BELIEVE THAT WORKS WITH EVERYBODY THAT HAS BEEN IN TELECOM 2000 NETWORK."

(V5,P258,L1-12)

SMITH: ". . do you feel like that your contribution to that fund (COMMENT: BOAC DEFENSE FUND) is something that you feel as a human being or do you feel that you're obligated in order to get your funds released?  Did you make that contribution out of some selfish motive or out of the fact that you want to help Al Petty in his time of trial?"

HENRY: "I GAVE THOSE FUNDS WITH THE INTENTION THAT WHETHER THIS TRIAL EVER COMES OFF TO CLEAR MY PART OR NOT, I WOULD HELP AL PETTY BECAUSE OF THE WORK HE'S HELPED ME AND SO MANY OTHER PEOPLE, AND I JUST WANT TO HELP THE - - IT'S A WONDERFUL, GOOD CAUSE AND I'M GOING TO SUPPORT IT EVEN AT THE EXPENSE OF GETTING A LITLE BIT MORE MONEY OUT OF MY POCKET THAT I MAY NOT EVER GET BACK."

CROSS EXAMINATION BY MR. MARCHESSAULT

(V5,P262-264,L17-25&L1-2,L9-25&L1-21)

MARCHESSAULT: ". . What do we sell?  And if you would, follow along with me because I want to read this.  What do we sell?  We sell you a turnkey business that guarantees your long distance and cell phone is going to be paid for a year or more.  That's pretty good.  We also guarantee you a turnkey lead generation enrollment center that does all the selling and signing for you, but YOU HAVE TO DO SOMETHING.  YOU HAVE TO GET THE NUMBER OUT.  We guarantee - - I'm going to the next page.  You the first five or we guarantee you the amount of money that will be generated by the first five BECAUSE WE'RE CONFIDENT IN OUR ABILITY TO DO THAT!"

COMMENT: AL PETTY STATES BELOW WHAT HE WAS ACCUSED REPEATEDLY OF NOT "STATING" LINES 12-14.

MARCHESSAULT: ". . But we're selling you a very - - a wonderful business that is so solid until its success is guaranteed.  That's pretty powerful.  It's important that you see that because WE'RE NOT JUST TRYING TO TAKE IN MONEY HERE TO PAY MORE MONEY OUT, TAKE IN MONEY TO PAY MORE MONEY OUT.  You are in effect.  That's what everybody does, you know, in everything you sell, whether it's a car dealership or whatever it is, you're taking in money as you can pay your bills and so forth.  What we're doing in that effect but there is a very real organization for furnishing you - - and if you would, I just want to keep up with this:  NUMBER ONE, A 14 MINUTE RECORDED MESSAGE THAT YOU CAN CALL 24 HOURS A DAY ON.  WE'RE going to have to expand to about 20 lines coming in very soon, PLUS WE'RE FURNISHING YOU ALL THE LITERATURE THAT IT TAKES TO DO THAT.  This is a part of the purchase that you make, part of the business that you purchase, the literature.  WE FURNISH YOU THE CONFERENCE CALLS THAT WE'VE HAD ON NOW FOR MANY YEARS.  And then after that WE FURNISH YOU WHAT WE CALL "THE REST OF THE STORY", which is with your applications and your contacts - - contracts, and then - - going to the next page at the top - - WE FURNISH YOU WITH THE CHARTS AND THEN WE GUARANTEE TO PUT THE REPS A CERTAIN NUMBER AND THEN IT'S UP TO YOU.  Like David was saying so well, it's not just a guarantee you're interested in.  You should be interested in building that organization yourself, but WE GIVE YOU THE TOOLSWE GUARANTEE YOU THAT WE'RE GOING TO BUILD THE FOUNDATION FOR YOU AND THEN GIVE YOU THE TOOLS TO EASILY BUILD IT FROM THAT POINT ONCOMMENT: DOES NOT "EVAPORATE" IN 6 MONTHS! ANOTHER OF MANY LIES BY GREGG!  IF THAT AIN'T A BUSINESS, I DON'T KNOW WHAT YOU WOULD DESCRIBE IT.  IT'S NOT SOME MULTI LEVEL DREAM OR SOME WILD IDEA.  THAT'S A SOLID BUSINESS.  THAT'S WHAT YOU PAY FOR WHEN YOU BUY THE BUSINESS, OKAY?  So we said that by the time that you get your first check, because - - that you came in and gave us the funds for your business and WE USE THOSE FUNDS TO MARKET IN SUCH A WAY TO GUARANTEE YOUR SUCCESS, WE HAVE COLLECTED ABOUT $9,000.  So, WE'RE GOING TO SEND YOU $79.95.  AIN'T THAT A RIP OFF?
YOU RECALL THAT BEING SAID BY MR. PETTY, IS THAT TRUE?"

COMMENT: TOTAL "TONGUE IN CHEEK" BEFORE AL PETTY EXPLAINED JUST HOW GREAT IT WAS FOR THE BUSINESS OWNER!  WHAT A FARCE BY "MUCH-ASSAULT!!

HENRY: "Well, I can't give word for word, but I would say it's probably very true.  I mean, I think it was said.  Maybe not."

(V5,P265-266,L1-25,L1-7)

MARCHESSAULT: "What you were buying is you were buying the 14 minute tape, you were buying all the literature that it takes, and by that I take it all the literature that it takes to recruit new members, and he furnishes you the conference calls and he furnishes "The Rest of the Story" and then he furnishes you the charts.  That's the businesses you were buying.  Is that your understanding?"

COMMENT: TOTAL MISREPRESENTATION OF FULL - MEANINGFUL CONTEXT OF WHAT AL PETTY SAID!

MARCHESSAULT: "Now, you mentioned that you're a man who worked hard for his money, but yet, you were able to invest I would characterize a rather substantial sum of money in the buying of these Pro businesses.  If I could ask, sir, where did you come up with the funds to invest close to $50,000?"

COMMENT: WHAT IS GREGG TRYING TO PROVE?

HENRY: "Sir, as I worked throughout the years, I'm the kind of man who doesn't gamble, drink, smoke or chase women, and I would save my money.  I don't buy things on - - I never bought things before I got into TeleCom without having the money ahead of time.  So instead of going down like most of the people in America, say John Doe public, which pays interest to his bankers as much as he pays for his car, his cologne, his wife, and his tools and his toys and everything else.  I didn't do that.  Instead I saved my money and now I go to the courthouse or whatever and find these lots that people let go for taxes most of the time and a few other ones.  I buy that lot at a low price.  Put utilities on it, rent that lot, so - - or not even rent all of them but some of them I develop and some I did not, so I had some property.  I got a loan against a property to get enough money to buy 50 businesses, so to speak."

MARCHESSAULT: "I TAKE IT THAT YOU JUST DON'T HAVE MONEY TO THROW AROUND AND THIS WAS - - YOU GAVE THIS SERIOUS CONSIDERATION BEFORE YOU MADE THIS INVESTMENT.  IS THAT A FAIR STATEMENT?"

HENRY: "YES."

(V5,P271-272,excerpts L1-25,L1-10)

HENRY: "Yes, sir."

MARCHESSAULT: ". . DO YOU RECALL SENDING A LETTER TO MR. PETTY OUTLINING YOUR APPRECIATION TO HIM?"

HENRY: "YES, SIR."

MARCHESSAULT: "IF YOU WOULD, WOULD YOU READ THAT?"

HENRY: "CAN I get a drink of water?  I'm kind of dry."

HENRY: ". . Mr. Al Petty, thank you, thank you, thank you for the help you're giving so many people.  Many people use the money - -"

COMMENT: WHAT DOES GREGG HAVE AGAINST CHRISTIANS?  WHATEVER IT IS, THE COURTROOM IS NOT THE PROPER VENUE TO VENT HIS RELIGIOUS "HAND-UPS!"  OBVIOUSLY THIS LETTER CONTAINED NOTHING OF A "LEGAL NATURE", TO CONVICT AL PETTY!  WAS IT MERELY TO RIDICULE PATRICK HENRY'S RELIGIOUS BELIEF'S?

HENRY: "Many people use the money and the intellect God bestows on them to live a wicked, sinful life.  I pray for the wisdom, knowledge and prudence to use what the good God bestows on me only for His great honor and glory.

As I mentioned to you recently, thanks be to God, I have been able to acquire some land these past 12 years.  It seems that soon I will be able to use the land for collateral security to obtain a big enough loan that I can move up to a Pro 50.  Thank almighty God and you there is such a thing as TeleCom 2000 and everything you are doing for us.

With this letter I include a sample of two of the many sermons and the other spiritual things I send to others in order to help them better know, love and serve God.  This is in general the way I plan to use the wealth that the good God bestows on me.

May God grant you and every - - you and yours every grace you need to live in perfect uniformity with his most holy well.

I plan to be listening to you on the conference call tonight.  Thanks again for everything.  Patrick Henry."

(V5,P273,L6-16)

SMITH: "Your Honor, I would like to inquire whether the Government is going to have a witness that can testify that $890,000 has been received for Mr. Petty's defense fund, BECAUSE IF HE CAN'T, THAT IS AN OUTLANDISH STATEMENT TO MAKE BEFORE THIS JURY."

MARCHESSAULT: "Your Honor, I'll be happy to address that."

HANNAH: "WELL, LET'S ADDRESS IT OUTSIDE THE PRESENCE OF THE JURY."

MARCHESSAULT: "Be happy to."

COMMENT: BUT THE STATEMENT, (FALSE), WAS MADE IN FRONT OF THE JURY, AS WELL AS GREGG'S "I'LL BE HAPPY TO ADDRESS THAT", INDICATING TO THE JURY THAT THE FALSE $890,000 COULD BE VALIDATED!  HANNAH DID NOT EVEN TELL THE JURY TO IGNORE ALL OF THIS "890,000 THING"!

HANNAH: "IN THE MEANTIME, LET'S GO AHEAD."

REDIRECT EXAMINATION BY MR. SMITH

(V5,P274-275,L3-25,L1-17)

SMITH: ". . DID ANYONE FORCE YOU IN TO entering into THIS BUSINESS?"

HENRY: "NO, JUST MY RELATIVE - - MY GOOD CONSCIENCE AND JUDGMENT TO enter into it."

SMITH: "So you came into it with an arms length contract between you and TeleCom 2000, is that correct?"

HENRY: "Basically the same way if I wanted to buy say a new pair of shoes, I would go and check out a few at Wal-Mart.  If Wal-Mart sold them cheap, I'd go buy it at Wal-Mart.  It's just sound reasoning."

SMITH: "WOULD I BE SAFE IN SAYING THAT UNTIL APRIL THE 4TH OF THIS YEAR THAT YOU WERE NOT A VICTIM?"

HENRY: "NOT BY TELECOM 2000."

SMITH: "OKAY.  AND IT'S NOT MR. PETTY'S FAULT THAT YOU'RE A VICTIM HERE TODAY, IS IT?"

HENRY: "ABSOLUTELY NOT, IN MY OPINION."

SMITH: "IS IT YOUR BELIEF THAT YOU WERE EVER INVOLVED, MR. PETTY WAS INVOLVED OR TELECOM 2000 IN SOME TYPE OF UNLAWFUL SCHEME?"

HENRY: "NO, SIR, NOT AT ALL.  I THINK IT'S THE OTHER WAY AROUND."

SMITH: "DO YOU THINK MR. PETTY OR TELECOM 2000 HAS DONE ANYTHING ILLEGAL?"

HENRY: "NO, SIR, NOT THAT I KNOW OF."

SMITH: "Scheming, fraud or any - - anything like that?"

HENRY: "NO, SIR.  HE'S CREATED NEW WEALTH AND WHEN YOU TAKE SOME PRODUCTS AND ARE ABLE TO GENERATE MORE WEALTH, THAT IS LEGAL AND YOU CAN READ IT ON THE SITE AT THE WEB PAGE THAT TALKS ALL ABOUT PYRAMIDS, SCHEMES AND FRAUDS.  COULD I READ THAT ONE?"

SMITH: "WELL, WE'LL BE GOING INTO THAT."

COMMENT: BUT J.R. NEVER DID "GO INTO THAT"!

SMITH: "BUT SUFFICE IT TO SAY YOU'RE SATISFIED WITH YOUR RELATIONSHIP WITH TELECOM 2000?"

HENRY: "I would say at this point, although I have not been paid much money, BECAUSE OF THE PEOPLE THAT WORK FOR AL PETTY THAT WERE ACTUALLY WORKING FOR THE FBI GOT CUT OUT OF A LOT OF MONEY THAT SHOULD ALREADY HAVE BEEN PAID BEFORE IT WAS SHUT DOWN.  I AM A HUNDRED PERCENT BEHIND AL PETTY BECAUSE I SEE THAT THIS THING - - IF THE FUNDS ARE FREED AND EVERYTHING IN THAT ORDER, THAT IT'S STILL A VERY GOOD, LEGITIMATE BUSINESS THAT'S GOING TO HELP MILLIONS OF PEOPLE IN THIS WORLD TO TELL THE TRUTH WITH WHICH GOD CREATED THEM."


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