Topic #9

DAW: (P174; L6-16) “The Auto-dialer was very efficient” - - - - - “He also had developed an intricate system of record keeping that was really an amazing example of efficiency that he had designed himself!” - - - - “He was very much committed to using technology to be more efficient.”

COMMENT: Contributing to the 90% Savings via Digital Technology that enable AL PETTY to LEGITIMATELY PAY 500 – 1300% GUARANTEED!

DAWNA EPPERSON, (Hostile Gov’t. Witness #2)

MARCHESSAULT: (P201; L5-6) “Are you familiar with the term ‘Transaction Log’?”

EPPERSON: “We had something called ‘Transact it’ Log - - - - - (P201; L7-13) It kept a history, the dollar amount total, and I would copy that on computer and paste it to a word document and that was then our log. We had so many computer problems that we couldn’t trust the history on the ‘Merchant Account Log’ because it would be lost, (Notice: That was not the reason for the ‘Transact it’ Log! It was created by AL PETTY because one could not efficiently “call-up” data essential to accurate records when using the log furnished by Nova, the merchant account) “So we copied it and kept our own.”

COMMENT: This speaks clearly of AL PETTY’S HONESTY, INTEGRITY, AND INTENT To SERVE the TeleCom2000 Business Owners to the Max.

EPPERSON: (P201; L23) “We wanted to keep a record of ALL the money that came in - - - - showing what our bottom line at the end of the day would be.”

COMMENT: This speaks of intentions THAT ARE as far removed from the government’s “BURDEN OF PROOF” accusations, that AL PETTY was “HIDING, OR INTENDED To ABSCOND with the FUNDS”, as day is removed from night!

EPPERSON: (P202; L12-14) “I’m sure Mr. Petty wanted to do that. It was just - - - It was too hectic, too busy for him to do that, so I started doing that.”

COMMENT: CUNNINGHAM said that one reason Al Petty was running a PONZI was that Al Petty tried to “portray himself” as a ‘very busy person’. Note throughout this expose that AL PETTY WAS ACTUALLY about as busy as one man could be!

EPPERSON: (P205; L17-18) “The Transact it Log should SHOW the dollar amounts that came in daily”.

COMMENT: If Al Petty was “SIPHONING OFF”, “SKIMMING” the proceeds to hide or abscond, would he have allowed a third person to handle all the money and faithfully record every dime?

EPPERSON: (P206; L3-14) “Each file name (in the data base), could be up to a hundred characters long, (actually 256 characters; Dawna forgot), and included a lot of information; 1) What plan they were in, as far as the long distance or cell phone, 2) Who the Rep was, 3) Who the customer was. At one point, it included 4) Addresses, 5) Phone #’s, 6) When the quick cash check was due to the Rep, 7) When the quick cash was paid, & 8) Who entered that information in the computer! So, in essence you did not actually have to open a file! You could look at the file name and know almost everything that was kept! If you opened the file, that was where we 1) Scanned the documents, 2) Their applications, 3) And their cell phone order, 4) And long distance order, 5) And any correspondence that they had sent in was scanned!”

COMMENT: It had been a YEAR since Dawna worked for Al Petty. The fact that she remembered this much detail, and was a governmental – Hostile Witness speaks very well for her, and for TeleCom2000 and Al Petty’s HONESTY, DIGITAL TECHNOLOGY, INTEGRITY, AND INTENT. Al Petty CREATED that DATABASE Known as “Dollar Pro”, ($PRO) in spite of many saying “it couldn’t be done”. Many of the thousands of DataBases contain over 100 pages!

SMITH: (P210; L24) “Would you say that Mr. Petty was a generous man?”

EPPERSON: (P210; L25) “I would say the pay he gave me was generous, yes.”

SMITH: (P216; L6-7) “Anything unlawful about Mr. Petty having his business there in his home?”

EPPERSON: (P216; L8) “Not that I know of.” (P217; L21-22) “The Transact It” Log, which I believe you have, shows the exact amount that came in daily.”

GOV’T. WITNESS #3 - (Provider of Long Distance for Al Petty)

RICHARD PILCHARD (Washington State)

COMMENT: The following conversation validates Al Petty’s INTENT to continue to offer PRODUCTS & SERVICES to the Business Owners, as well as Al Petty’s HONESTY & INTEGRITY.

MARCHESSAULT: (V2; P19; L8-9) “Did you attend any seminars or conferences conducted by Mr. Petty in Texas?”

PILCHARD: (V2; P19: L10) “ In June of 2001 or July of 2001.”

MARCHESSAULT: (V2; P19; L11) “And what was the reason for your participation?”

PILCHARD: (V2; P19; L12-13) “Mr. Petty asked me to come and explain the long distance and our Product and Paid For My Trip To Tyler.”

MARCHESSAULT: (V2; P19; L16) “And you spoke concerning your product?

PILCHARD: (V2; P19; L17) “Yes, I did”.

COMMENT: No Rational Person, without a motive to “distort and twist” the truth to THEIR Advantage, (such as the government), could interpret the above as: “Al Petty “INTENDED TO ABSCOND WITH THE FUNDS” AND NOT PAY HIS PEOPLE.

GOV’T. WITNESS #4 (Provider of Cell Phones for Al Petty)

SHAWNA OLSON (CALIFORNIA)

COMMENT: This conversation continues to validate the INTENT of Al Petty to provide his Business Owners with valuable Products.

KENNER: (V2; P29; L23-24) “What was the nature of your relationship with Mr. Petty?”

OLSON: (V2; P29; L25 and P30; L1) “Mr. Petty was my client and he MARKETED my Cell Phones to his member base of TeleCom2000.”

KENNER: (V2; P32; L18-19) “When did Mr. Petty become your client?”

OLSON: (V2; P32; L20) “We signed this contract in August of 2001.”

KENNER: (V2; P32;; L21) “And how long was he your client?”

OLSON: (V2; P32; L22) “He still is my client!”

COMMENT: The government spent a lot of money and time in their efforts to bring OLSON from Calif. to Tyler and get her to “paint a negative picture” of Al Petty. It is important to note that the ONLY persons who spoke ANY WORDS to attack the HONESTY AND INTEGRITY of Al PETTY were persons who had no previous “Personal” association with him! ONLY the GOVERNMENT OFFICIALS, WHO HAD NO FIRST HAND KNOWLEDGE OF, OR RELATIONSHIP WITH, Al PETTY! ONLY THESE PERSONS SPOKE NEGATIVELY!

1) TRACI KENNER – Lead Prosecutor

2) GREGG MARCHESSAULT – Assoc. Prosecutor

3) JAMES HERSLEY – FBI Agent

4) BARRY HERRARA – IRS Agent

5) WILLIAM CUNNINGHAM – “EXPERT” (?) WITNESS

6) Judge HANNAH – Judge

7) CHARLES WEAVER – Merchant Acct.

8) BRIAN McCABE – BANK VP (See Topic #21)

ALL of the remaining 40 or so witnesses, most of whom had actually spoken with, or knew Al Petty, had ONLY THINGS to say that would validate the HONESTY AND INTEGRITY, as well as his “INTENT TO SERVE HIS PEOPLE” of TeleCom2000. ONLY those who were NOT acquainted with this man, and whose PURPOSE was to DESTROY him, attacked his character!

KENNER: (V2; P33; L25 & P34; L1) “At my request, did you calculate the number of TeleCom2000 customers that were referred by Mr. Petty?”

OLSON: (V2; P34; L2) “I sure did!”

KENNER: (V2; P34; L3) “And how many were there?”

OLSON: (V2; P34; L4-5) “There was a lot more than what actually got activated, due to ‘coverage’ issues, but we actually activated 1,174.”

KENNER: (V2; P35; L15-16) “Did the number of customers stay the same throughout the relationship to Mr. Petty?”

OLSON: (V2; P35; L17-18) “No! Our customers pretty much consistently DOUBLED every month!”

COMMENT: THAT KIND OF BUSINESS GROWTH IS THE DREAM OF EVERY WALL STREET BROKER AND BUSINESS IN THE WORLD!

COMMENT: WHAT KIND OF CITIZENS PARTICIPATED AS TELECOM2000 BUSINESS OWNERS?

JUDGE HANNAH: (V2; P37; L17-21) “You say ‘activated’ means that some might have been referred that didn’t pass their credit check or something and therefore weren’t activated?”

COMMENT: On lines 4 & 5, above, OLSON stated that the reason for ‘NON-ACTIVATION’ WAS ‘COVERAGE’. This is but one of many instances that validate the statement by “Race Horse Haynes” at the June 12th Hearing that the “PROBLEM WE HAVE here is that the government is about 15 years behind Al Petty’s TECHNOLOGY.” Now OLSON tries to “bring HANNAH up to “TECHNOLOGICAL-DATE”, as well as testifying to the TYPE of “model” and “responsible” citizens who were TELECOM2000 BUSINESS OWNERS!

OLSON: “We had actually very few people who didn’t pass the credit check in Mr. Petty’s program!”

COMMENT: These people did NOT “just crawl out from under a rock”! They would NOT have participated in a PONZI, or ANYTHING ILLEGAL! This is why EVERY person associated with Al Petty, including the TeleCom2000 Business Owners who were Government Witnesses, “STOOD THEIR GROUND” IN DEFENSE OF AL PETTY AND IN CONDEMNATION OF THE GOVERNMENT THAT THEY ALL KNEW HAD DEFRAUDED THEM!

ANITA BANKS; AL PETTY EMPLOYEE - HOSTILE GOVERNMENT WITNESS

COMMENT: If Al Petty had intended to “Deceive, Defraud, and abscond with the funds”, as the prosecution continually alleged from day one in their press releases, “Burden of Proof” for the government’s freezing the funds, as well as throughout the trial, it is inconceivable that he would have thoroughly and meticulously documented EVERY transaction and detail, as testified to, 100% of the time by EVERYONE WHO actually worked with, or knew Al Petty!

KENNER: (V2; P125; L4-20) “Now, how were the applications processed, once they were received by TeleCom2000?”

BANKS: “Ok, they were received and the people were entered into the system. Their personal enrollment date was put down, a file was created under what we call the directory, “Dollar Pro”, a file that would list if they were coming in, say, as a “PRO One” or “Two” or how much, the date that that happened, who their sponsor was; and then, ALL OF THEIR DOCUMENTS WOULD BE SCANNED INTO THAT FILE so that it WOULD BE ON RECORD, (COMMENT: Nothing hidden!), as well as the hard copies were kept.”

KENNER: “Did the employees at TeleCom2000 make some notations on these documents before they scanned them?”

BANKS: “Yes, their enrollment date was noted on there, the day the documents were scanned in, and by whom, the initials were generally there as well, and it also usually listed whether or not they were going to have cell phone and long distance, one or two each, or one of both.”

COMMENT: Actually the TITLES in each $PRO File contained as many as 256 characters, with over 40 bits of information in each title, and up to 100 pages in each file! Obviously AL PETTY did NOT INTEND, nor would he ever, CONCEAL, DECEIVE OR DEFRAUD ANYONE. In his 70-year lifetime, he never did defraud anyone; WOULD he suddenly change? The government had NO LEGITIMATE reason to shut down his LEGITIMATE BUSINESS and put him in prison for 24 years!, (LIFE!).

Several years were added to Al Petty’s sentence for “CONSPIRACY” with others to deceive and defraud. The following is but one of MANY testimonies that prove Al Petty to be the SOLE creator, Founder and operator of TeleCom2000, therefore there was no conspiracy.

KENNER: (V2; P130: L5-8) “Now, Ms. Banks, did Al Petty prepare this document?”

BANKS: “Yes, he did.”

KENNER: “Did he prepare the other documents as well?”

BANKS: “Yes”.

(ON DIGITAL TECHNOLOGY AND COST CUTTING)

SMITH: (V2; P140-141; L-23-14) “A couple questions: could you have performed - - - in regards to the photographs that were up here, could you have performed your duties any better on top of the bank building over here than you performed out there on the 20 acres?”

COMMENT: The FBI had Virginia Mayo, their first “Snitch”, to take pictures of the working environment at TeleCom2000. In their ongoing efforts to deceive the Jury into convicting an innocent man, they presented the photos in a way intended to discredit the Digital Technology that enabled Al Petty to cut the costs 90% and pay 500 – 1300% returns. Their display of these photos to falsely lead the Jury into believing that Al Petty did not have the facilities to deliver on his unprecedented guarantees is another example of FALSE ALLEGATIONS permitted by the Federal Court that WOULD have led the Jury to believe a lie, if counsel had not exposed their misrepresentations. Note that, even a Hostile government witness refuted the prosecution’s attempt to deceive. (Note: This witness actually attempted to BLACKMAIL AL PETTY for $1,000,000, yet the government chose this deceitful person to “explain” AL PETTY’S OPERATION!

BANKS: (answer) “No.”

SMITH: “Did you have the equipment that you needed?”

BANKS: “Yes, we had computer equipment.”

SMITH: “Although it was certainly not a fancy operation, it was adequate to take care of the business. Is that correct?’

BANKS: “Yes, it was.”

SMITH: “And certainly the overhead would have been a lot less there than other places that might have been chosen?”

BANKS: “yes.”

SMITH: “is that correct? Now, in regard to your employment, were you treated fairly in your work?”

BANKS: “Yes, I was treated fairly in my work.”

COMMENT: Banks was treated fairly, in spite of the fact that KENNER tried to falsely influence the Jury to believe AL PETTY paid her with HOT CHECKS!

SMITH: (V2; P162; L22-24) “Do you feel like you were adequately paid for the job that you did?”

BANKS: “Yes, I was paid adequately.”

COMMENT: If AL PETTY HAD INTENDED TO ABSCOND with the funds, he certainly would NOT have spent the time and money to create his exclusive AutoPay system, PREPROGRAMMED for GUARANTEED PAYMENTS.

SMITH: (V2; P144; L14-20) “Would you relate to me, in terms I might understand, what the AutoPay schedule was?”

BANKS: “It was a schedule that Mr. Petty had put together, (COMMENT: NO “CONSPIRACY”). It was the checks - - - - your particular enrollment date, it was based on that, and then the timing on that, within 6 months, the stuff was entered into AutoPay, which meant that you would get your checks on a specific date.”

SMITH: (V2; P145; L24-25 & P146; L1-18) “Was Mr. Petty pretty anxious about everybody getting that money on time?”

BANKS: “Yes, he was!”

SMITH: “And, if they didn’t get their money on time, he got right on it and found out why, didn’t he?”

BANKS: “Yeah. He got upset.”

SMITH: “At the end of 6 month, or (“179 days”), was there any coercion or threats that – ‘If you don’t sign another contract, something bad is going to happen to you?”

BANKS: “Absolutely not, no!”

SMITH: ‘Okay. So everything that happened, over millions of dollars, and over the time that you were there, it was a contract between TeleCom2000 and ‘Jane Doe’ that lasted for that six months, and at the end of that six months, it could be over?”

BANKS: “That’s correct.”

COMMENT: As we will see in later testimony of “Prof. Wm. Cunningham”, he and the prosecution WON this case by PRESENTING false testimony that stated, and was built upon FUTURE contracts of exactly the same 500 – 1300% conditions lasting for a period of 4 years, when the indisputable FACTS are that the contracts for the commissions ALL were written on a six months basis, plus LD and Cell re-imbursement checks for up to 2 years. More on that deception later!

INTENT: DWAYNE PETTY –GOVERNMENT WITNESS – NEPHEW OF AL PETTY

MARCHESSAUCT: (V2; P150; L2-17) “Did you attend a conference or seminar for TeleCom2000 investors, or business owners.”

DWAYNE PETTY: “I attended that conference, yes, sir.”

MARCHESSAULT: “And where was it held?”

D. PETTY: “At the Holiday Inn in Tyler, Texas.”

MARCHESSAULT: ‘And why did you attend?”

D. PETTY: “I was invited to videotape the seminar.”

MARCHESSAULT: “And who invited you to do this?”

D. PETTY: “My ‘Uncle Allen’, Al Petty.”

MARCHESSAULT: “Had you done something in the past like this for him?”

D. PETTY: “Yes, sir.”

MARCHESSAULT: “And when did you do that for him?”

D. PETTY: “In July of the previous year.”

MARCHESSAULT: “And was that also another TeleCom2000 conference or seminar?”

D. PETTY: “Yes.”

COMMENT: Would Al Petty have documented these conventions with VIDEO RECORDINGS if he intended to deceive, defraud or “abscond with the fund?” Again, ALL TESTIMONY supports the FACT that Al Petty 1) Committed NO Fraud, 2) INTENDED to commit NO fraud, 3) Would have NEVER Committed Fraud. Therefore, ONLY the Prosecutions False Statements and Lies convicted this innocent man!

MARCHESSAULT: (V2; P152; L17-23) “Why did you procure better equipment at this second seminar than you did the first seminar?”

D. PETTY: “Because my uncle asked me to have a higher quality video duplication process, because from the first seminar I had more orders than I expected, and the duplication of the tapes, after multiple duplications, created a degradation in the tape quality, and the message was not portrayed properly.”

COMMENT: AL PETTY’S INTENT, AND ACCOMPLISHMENTS, WERE ALWAYS TO BRING NOTHING BUT THE BEST TO EVERYONE WITH WHOM HE WAS ASSOCIATED, FROM HIS TEENAGE YEARS, HIS RECORD CONFIRMS THIS.

“INTEGRITY – HONESTY – INTENT”

BILL BYERS – TELECOM2000 BUSINESS OWNER – GOVERNMENT WITNESS VIA SUBPOENA

CROSS BY J. R. SMITH

SMITH: (V3; P47; L12-25, plus P26; L1-3) “So far as your personal relationship, and your business relationship, with Al Petty, you’ve seen, and you’ve testified today that, even though he might have brought in more business, he would not do so because he was not prepared to handle that efficiently is that my understanding?”

BYERS: “Upon occasion, that’s right.”

SMITH: “Okay, and have you known him to be a very detail oriented person so far as his business and his business owners?”

BYERS: “Very much so!”

SMITH: “you got a check that’s supposed to be out on the third, it should be there on the 3rd?”

BYERS: “And if it WASN’T - - - I recall there were times when ever the equipment was down because of computer failure, or they were just running out of memory, or possible potential with the equipment that they had, and they were in the process of setting up a new system, everybody was warned and told about that. It caused a “slow down’.”

SMITH: (V3; P48; L17, plus P49; L1-15) “Even though you are a witness for the prosecution in this case, you have that relationship with Al Petty still, is that correct?”

BYERS: “Yes!”

SMITH: “Would you tell the ladies and gentlemen of the jury, what is your personal opinion of Al Petty’s personal integrity?”

BYERS: “Well, I believe my answer should be confined to my own personal experience.

SMITH: “Exactly.”

BYERS: “I’ve heard it said that ‘experience is the best teacher’. I don’t believe that. I think it’s the ONLY teacher! I had an experience since I met him those ‘ten plus years ago’ in relation to his use of one of our TeleComputors and he was helping a church at that time, and since that time, in our personal dealings, to summarize and be very brief, I have never known him to be anything more than trustworthy, a man of integrity! He’s always made every attempt to do what you have asked him to do, if he thought it would help you. He’s a man who helps. So I really don’t have anything to say other than that.”

SMITH: “Do you have confidence in the future of his business after this trial is over?”

BYERS: ‘ I do!”

SMITH: “Do you intend to participate in it?”

BYERS: “I do!”

SANDRA HALLEY: Government witness, informant – attempted to blackmail Al Petty for $1,000,000 – Conspired with Virginia Mayo, (1st Govt. informant and scheduled witness who did not appear), to defraud Al Petty – Sandra burglarized Al Petty for $98K – former trusted employee.” See Facts regarding Halley.

KENNER: (V3; P127; L9-20) - -“Did ya’ll have a document that you termed ‘The Data Base’?”

HALLEY: “What we referred to as the ‘Data Base’, it held ALL of the - - ALL of the information, it was actually a ‘Word’ document, but we did refer to it as Data Base.”

COMMENT: If Al Petty was ‘Deceiving and Defrauding’, diverting the funds for his personal use, and planning to ‘ABSCOND WITH THE FUNDS’ (as accused), would he have created a Data Base and put ALL of the information into it, as even FBI Agent, JAMES HERSLEY admitted several times that Al Petty Did?

KENNER: “And how was this document used?”

HALLEY: “We set up ALL of the information about the vendor using various ‘Coding’ that Mr. Petty came up with that tells their name, the date they came into the plan, their address, who their sponsor was, significant information that we could look upon that ONE LINE and tell a LOT of information about that particular person.”

COMMENT: How much “EVIDENCE OF GOOD INTENT” does a reasonable person need to understand that the government LIED continually to the Public prior to the trial, and the Jury and Court during the trial by claiming ‘AL PETTY INTENDED TO DECEIVE, DEFRAUD, AND ABSCOND WITH THE BUSINESS OWNERS MONEY’?

HALLEY: (V3; P’s127-128; L24-25; L1-15): “When the application was processed, when it was received and actually given a ‘PTL’ date, when it was - - the money was cleared, - - - - the ‘PTL date’ was assigned and the data base was set up, the ‘one line instruction’. Then the documents were scanned under that one line title, (note: up to 256 characters on that line), so that when you pulled up that one line in that word document, you could click on it and it would give you the documents, the letters that had been sent out to the people, and their Pay-Out plans. Their applications eventually were scanned into that same data base, so it held everything, all the information - - - regarding that application and that person. If they came in multiple times, additional documents were - - The intent was for the additional documents to all be scanned under that one data base.”

COMMENT: Some of those data bases contained over 100 pages of documentation. Al Petty had engineers working on his concept that would enable him to merely “CLICK” an ICON in that Data Base and he could listen to ANY conversation, with ANY CLIENT, FROM ANY TIME, AT ANY TIME! If his intent was to abscond with the funds, can you believe Al Petty, or anyone, would spend the money and time to develop these FUTURISTIC DIGITAL TECHNOLOGY CONCEPTS?

KENNER: (V3; P129; L11-23) “Did the employees, as they were preparing to scan it through the data base, make notations on the documents?”

HALLEY: “Yes, it went through several hands, or not all, but several hands to get it processed. There was a phase to actually run the credit card, or to actually account for the cashier check, and that was, more or less, one or two people that did that.

Then another party had to make sure that the applications for the phone services, be the land lines and the cell phones, got faxed out. They had notations.

Then, as the ‘quick cash’ was initially paid, notations were made on the later applications - - -.”

COMMENT: It should be obvious to even a ‘casual’ observer that the complex and detailed business processes in the operational flow of TeleCom2000 speak LOUD AND CLEAR that TeleCom2000 WAS A LEGITIMATE BUSINESS, FAR REMOVED from a PONZI! The following testimony is concerning 1099’s and W2 Forms. There was NO IRS then, so PONZI certainly filled out none of these, nor issued any to his participants, nor did they file any reports as to their income. A person who intends to “abscond with the funds of others” – as the government consistently accused Al Petty of – certainly would not be keeping records of everything regarding his operation, nor would he issue 1099’s and W-2’s as legal documents confirming his INTENT OF INTEGRITY.

KENNER: (V3;P133;L5-9) “were you aware that the IRS Form, 1099’s were filled out?”

HALLEY: “Yes, I was.”

KENNER: “At TeleCom2000?”

HALLEY: “Yes.” (V3;P133;L21-23)---“any business has to report wages paid to individuals that they withheld taxes on, and those are W-2’s, 1099’s is any contract labor."

IVAN PEJOVIC TECH-CONSULTANT FOR AL PETTY – GOVERNMENT WITNESS

(V3; P197; L8-10) (INTENT –INTEGRITY)

KENNER: “And so, is it a fair statement that you began working on those systems, (Note: of Al Petty’s), to upgrade them?”

PEJOVICH: (L10-19) “Yes ma’am, I did - - - - - -Every piece of equipment was different, and it was customized just for his work!”

COMMENT: The reason for the above statement was that Al Petty’s ENTIRE OPERATION was “DIFFERENT” AND HAD TO BE “CUSTOMIZED” to perform the UNIQUE AND REVOLUTIONARY FUNCTIONS required for the successful performance of Al Petty’s TeleCom2000. It is worthy to note that IVAN PEJOVICH was qualified to the “HIGHEST DEGREE” of TECHNOLOGY DESIGN, BUILDING AND OPERATION. He had worked in Dallas, most recently, networking Hundreds of Computers in Banks and other institutions, plus virtually every conceivable field of DIGITAL TECHNOLOGICAL ENDEAVOR!

(V3; P198; L4-10)

PEJOVICH: “For the equipment, we did bill as needed because there was a lot of equipment that was being put into the operation!”

KENNER: “And did this grow into a fairly steady job?”

PEJOVICH: “Well, actually it grew to be more than a steady job. We ended up spending 10, 15, 20 hours a day out there, would go home, sleep and go back. - - The work that we were doing was growing exponentially!”

(V3; P199-200; L22-25 & 1-3)

KENNER: “Now, did Mr. Petty begin researching the purchase of another check writing program?”

COMMENT: If Al Petty intended to “ABSCOND WITH THE FUNDS”, as the government alleged from the beginning, or to DEFRAUD his Business Owners, would he have been constantly upgrading his operation, as illustrated here?

PEJOVICH: “Yes, ma’am.” (Note; on question regarding researching another check writing service.)

KENNER: “Did you assist in that?”

PEJOVICH: “I sure did!” (COMMENT: PEJOVICH’S responses indicate that he was not embarrassed or ashamed of his participation in TeleCom2000 and Al Petty’s work! To the contrary, he was clearly PROUD of his involvement, although he was a government witness!)

KENNER: “And what was the name of that program?”

PEJOVICH: “It was Gemisys. The name of the Business that operated was GEMISYS.

KENNER: “And can you explain to the Jury, your involvement in that?”

PEJOVICH: “Well, I was pretty much involved in the technical aspects of it, on how it would work, and how secure it would be to send this information to these people. Right now there’s a lot of problems with ‘identity theft’, a lot of people hacking into what’s happening out there in the Internet. It’s pretty much open, and I was involved in making sure that whatever we sent to them was secure, and that nobody else would have access to it, except for the people that it was intended for.”

COMMENT: Does this INTENT to utilize the HIGHEST TECHNOLOGY to better serve his clients indicate that Al Petty was running a “STATE-OF-THE-ART” LEGITIMATE Business or a PONZI SCHEME? Does it indicate that Al Petty INTENDED to continue his revolutionary Business or to DECEIVE & DEFRAUD? As mentioned previously, Al Petty spent $600,000 with PEJOVICH in Jan – Feb – Mar of 2002 to ensure the future of TeleCom2000!

KENNER: (V3; P202; L17-20) “and can you tell me the total amount of the checks in Government’s exhibit number 37?”

PEJOVICH: “I don’t know the exact. It was $488,000, the amount together.

KENNER: (V3; P202; L23-P203, L1-2) - - “is that an accurate amount of the money that you received from - - - TeleCom2000 when you worked for them?”

PEJOVICH: “Yes, ma’am.”

COMMENT: The $488,000 displayed in this exhibit was not the “Total Amount” of checks written to PEJOVICH during the 3 months or so that he worked for Al Petty. Whereas this amount represented the major portion, other records will show that approximately $600,000 “passed through the hands” of PEJOVICH during his 3 months of employment by TeleCom2000.

COMMENT: Al Petty had the new “HOME-OFFICE-PARSONAGE” he was building wired to accommodate a ‘virtual private network’, (VPN). He had paid IVAN PEJOVICH $80,000 towards this project. The VPN was designed to enable Al Petty to view the CANADIAN operation “REAL TIME” in his office on a Large Screen in Overton, Texas. One of the ‘proofs’ that IVAN knew of the anticipated move of the operations to Canada far in advance of his ‘testimonial’ of only ‘2 HOURS’ of awareness, is that he had discussed this VPN and its use, with Al Petty for many hours, over a period of time. The new facility, (Home), in Overton was already wired for the VPN and Al Petty had paid IVAN $80,000 towards the projected cost of $1,000,000 to build the VPN.

If Al Petty had intended to “DECEIVE & DEFRAUD, & ABSCOND with the funds”, would he have planned to spend $1,000,000 on a VPN to make it possible for him to oversee his operations in Canada from his office in OVERTON? Throughout the trial, KENNER & MARCHESSAULT PURPOSELY IGNORED what they KNEW to be the FACTS regarding the Legitimacy of TeleCom2000. Instead of seeking the “Justice” that they were sworn to pursue in Al Petty’s Trial, they resorted to HALF-TRUTHS, FALSE STATEMENTS & OUTRIGHT LIES to deceive the Jury into convicting Al Petty! Below is a description of the VPN and its use by IVAN PEJOVICH.

(V3; P204-205-206-207-208 EXCERPTS beginning at Line 7 on P204)

KENNER: “Now did Mr. Petty begin - - or did he ask you to research a ‘(VIRTUAL PRIVATE NETWORK)’?”

PEJOVICH: “Yes, ma’am.”

KENNER: “Can you tell the Jury what that is?

PEJOVICH: “Virtual Private Network, or ‘VPN’, is a secure way of transmitting data through the Internet. VPN’s are being used by a lot of companies. They protect your privacy. A lot of Big Companies use them, IF THEY HAVE MORE THAN ONE BRANCH, so those branches can talk to each other in ‘Real Time’ and not have to worry about any hacker attacks, OK anybody from outside, being able to break into the - - what they’re doing. It protects privacy pretty much, is what it does."

KENNER: "Do they employ what is called ‘ENCRYPTION’?

PEJOVICH: "Yes, I did encrypt some of the data, not all of it, and the data after this project was going to be done was going to be encrypted, yes, on a very high level."

KENNER: "Can you describe that to the Jury?"

PEJOVICH: "Encryption is what you use—it’s kind of like encoding a certain letter. Every letter of the alphabet is being represented by—in our case, about 1500 letters and signs in ASC11 code. So, for every one of the letters, there was going to be 1500 signs! All this would change the key that actually tells a computer how to ‘DECRYPT’. This message will change every four to six hours. So it was the highest possible encryption available to buy out there. We did go all the way with that."

KENNER: "What is the date on this invoice?"

PEJOVICH: "7th of March, 2002."

KENNER: "And I’ll ask you to look at the first entry that says ‘3 x VPN Router’- What does that mean?"

PEJOVICH: "Three VPN Routers, these routers were going to be used to this encryption so that the end user would not actually have to be interrupted by everything that’s happening, all the encryption and everything."

KENNER: "And where were these VPN routers going to be located?"

PEJOVICH: "One was going to be in Overton, Texas. (COMMENT: If Al Petty was planning to “flee and abscond with the funds”, as the government repeatedly stated to the press, and in their documents to justify their “freezing of the funds”, would he have located one of the VPN routers in the home-office he was building in Overton?) One is going to be at my site so I can remotely manage it if anything goes bad, and one was going to be in Canada."

COMMENT: It should be obvious to ANYONE who WANTS TO KNOW THE TRUTH, (as opposed to the government!), that Al Petty’s UNQUESTIONABLE INTENTION was to REMAIN in his birthplace of Overton, TX and oversee the operation in Canada from his home-office!

KENNER: "What is the total amount for the three of them"?

PEJOVICH: "$26,025"

COMMENT: This invoice represents SEVERAL checks written by Al Petty to PEJOVICH for which Al Petty never received ANYTHING for. PEJOVICH clearly received a LOT of money for which he made no purchases, or rendered no services!

KENNER: "Is there a server for Canada VPN?"

PEJOVICH: "This is a server that was going to be on the other side of the VPN in Canada for the business up there - ‘ZEON’ is the processor that was going in it. It’s a high-end server processor."

KENNER: "And what was the price of it?"

PEJOVICH: "$27,600"

COMMENT: Another check given to PEJOVICH for NO Product or Service delivered.

KENNER: "What is the date on this?" (invoice)

PEJOVICH: "31st of March"

KENNER: "Can you explain this to the Jury?"

PEJOVICH: "Well, we had to figure out which VPN’S are the best for what Mr. Petty was asking for, and for the situations. There’s a lot of companies out there that make VPN routers and they go from a cheap VPN router, that you may buy at “Best Buy”, ok to the very expensive ‘SISCO’ routers that cost hundreds of thousands of dollars. Se we had to do the research, what was cost effective for the operation that we had to do, and that involved a lot of testing equipment. We even went to Dallas and probed some of these VPN Routers. They let us test them, and did quite a few things on them, before we actually decided what we were going to go with."

KENNER: "And what was the price for this research?"

PEJOVICH: "$13,700"

COMMENT: The relatively small amount of the detail involved in the functions and development of Al Petty’s $1,000,000 VPN that were testified to and reported above is but the “tip of the iceberg” of Al Petty’s DIGITAL TECHNOLOGY. However brief, the testimony of IVAN PEJOVICH VALIDATES several important facets of the INTENT, INTEGRITY AND TECHNOLOGY of Al Petty.

1)NO ONE would have invested as much time, talent and money in technology that would enable them to achieve a “seamless” transition of service to his customers from Canada as Al Petty did UNLESS he intended to “SERVE his people to the MAX! Certainly NO ONE would spend $1,000,000 to better serve his clients if he was planning to “abscond with their money”!

2) Although Al Petty was OBVIOUSLY convicted- not because he COMMITTED OR INTENDED to defraud anyone – but the prosecution and their “expert” witness CUNNINGHAM, convinced the Jury that Al Petty WOULD HAVE defrauded others if they had allowed him to continue. However, ALL witnesses, and thus far only government witnesses, from DAW to EPPERSON, through OLSON, HALLEY, the MERCHANT ACCOUNT EXECUTIVES, the AUTOPAY check writers and IVAN PEJOVICH, testified to Al Petty’s FOCUS, AND ACCOMPLISHMENT of the most advanced TECHNOLOGY to be EMPLOYED by Him. Certainly Al Petty’s “TRACK RECORD” ALL of his life, and ESPECIALLY with TeleCom2000, proves to any observer who will accept the TRUE FACTS, that the “potential” for UNPRECEDENTED SUCCESS of TeleCom2000 was virtually without limit! Therefore EVERY piece of EVIDENCE regarding Al Petty indicated that he WOULD HAVE NEVER DEFRAUDED ONE PERSON, if the government had not shut him down! To the contrary, ALL TESTIMONY AND EVIDENCE PROVED that Al Petty’s TeleCom2000 would have enabled hundreds of thousands, or more, to achieve FINANCIAL INDEPENDENCE from the use of Credit Cards, Finance companies, Lending institutions, Unemployment and Compensation, Disability, Food Stamps, and other Government handouts such as Social (In) Security. Could this be why the “Power Hungry Government” SHUT HIM DOWN? i.e; so they could keep the citizens “VOTE-DEPENDENT” on those in office?

3)The following facts can not be overlooked: NOT ONE of the government’s witnesses, Friendly or Hostile, who had been actually associated with Al Petty even HINTED that they had ANY reason to believe that Al Petty EVER INTENDED to defraud or Harm ANYONE. This included EVERY ONE of Al Petty’s former employees, Vendors and Business Owners.

4)NOT ONE of the persons who knew Al Petty EVER HINTED, or suggested, that Al Petty would have EVER failed to keep his contractual commitments if he had been allowed to continue TeleCom2000!

5)The ONLY persons who questioned the ability of Al Petty to succeed indefinitely with TeleCom2000 were the GREEDY, TECHNOLOGY ILLITERATE, POWER HUNGRY AND RUTHLESS “CONSPIRATORS” Known as the EAST TEXAS FEDERAL JUDICIAL SYSTEM! This is a “TRAVESTY OF JUSTICE” that the whole world should be made aware of!

The Following testimony validates Al Petty’s INTENT AND FOCUSSED PLANNING to enable him to continue to operate TeleCom2000 INDEFINITELY. (on moving equipment to Canada)

(V3;P210;L19-25 & P211;L1-10)

PEJOVICH: "In case something breaks or they handle it roughly or something, anything can happen to it, that we have that DATA. I did have hard drives that we rotated. We had three hard drives that I would back up every Friday, one of them, and I would rotate them in a cycle. I did the same thing that weekend, except that I made two backups, because one was going with the driver, (of truck to DFW Airport), with the server, and the other one was going to be to a safety deposit box.--They were going to Canada--I was asked to go up there and set them up."

KENNER: "And did you?"

PEJOVICH: "Yes ma’am, I did.(V4;P5-6) (It cost $2,460 to package 400 pounds and $4,996 to ship)".

COMMENT: Can there be any question that Al Petty was “LEAVING NO STONE UNTURNED” to ENSURE the CONTINUANCE of TeleCom2000?

PEJOVICH: (V4;P10;L13-14) "At all times there was one hard drive on site and there was two of them off site."

PEJOVICH ON “CROSS”

(V4;P17;L23 & P18;L7-24)

SMITH: "What was the Data Base?"

PEJOVICH: "The Data Base would have to be simplified--it would simplify sending faxes, receiving faxes, it would speed them up probably ten times in the way they were doing their job. Most of the ladies up there, they were working on two or three computers at the same time. They were very efficient in how they did their work, and this was going to speed them up quite a bit more."

COMMENT: The record of Al Petty will prove that virtually ALL of his life was focused, in varied areas, with increasing the efficiency of his current endeavor by “TEN TIMES”. This “TEN TIME EFFICIENCY” pattern, for example, enabled Al Petty to reduce the cost of producing commercial musical albums and CD’s by 90%. (i.e; by accomplishing TEN TIMES THE RESULTS in a ‘given time frame’, thereby reducing costs by 90%). For at least the previous 30-40 years, this “pattern of 90% cost cutting” was a ‘constant’ in Al Petty’s projects.

The government consistently alleged, and apparently CONVINCED THE JURY, that Al Petty COULD NOT ‘CONTINUE’ to operate at 10% of the marketing and operational costs of AT&T and SPRINT. However, as in the above illustration, it is clear that Al Petty, IF ALLOWED BY THE GOVERNMENT TO CONTINUE OPERATIONS, would have been able to continue to increase the efficiency of his operations to successfully meet ALL contractual commitment indefinitely!

(V4;P18;L21-25 & P19;L-1)

SMITH: "There was a lot of equipment purchased?--And, in relation to that, do you know about how much equipment was purchased?" (Note: During Jan – March, 2002)

PEJOVICH: "I don’t know the exact number. It was over $300,000!"

COMMENT: These purchases were in the 3-month period – Jan, Feb, Mar, just prior to the operational move to Canada. Certainly NO ONE would spend $300,000 on new equipment and software if they planned to “escape” to Canada and abscond with the funds!

(V4;P21;L;4-6)

SMITH: "And you and other persons, other consultants up in Canada were to set up a network?"

PEJOVICH: "Yes, Sir."

(L16-21)

SMITH: "What was the ultimate objective of those three networks that you were building? To do the business of TeleCom?"

PEJOVICH: "Yes, Sir."

SMITH: "To make sure that the money was accounted for, and the checks that were written in accordance with the contracts?"

(V4;P22;L6-22)

SMITH: "We’re talking about ‘intent’ now, Mr. Pejovich. Your understanding of the intent was that they were going to do the same thing in Canada?"

PEJ0VICH: "Sure."

SMITH: "That they were doing here, except they were going to do it faster?"

PEJOVICH: "That’s what I assumed, yes."

SMITH: "And they could do a lot more, so far as volume is concerned, and the equipment that you had purchased and shipped to Canada?"

PEJOVICH: "I would think so, yes, I think they could have done more up there. - I did get the server with the - The file server that actually had the most important data that they needed, I did get that part running, and I got about six work stations running with the file server and the data base server."

(V4;P23;L2-25)

SMITH: "Did that portion of the entire network have to do with writing checks to business owners?"

PEJOVICH: "Every part of it had to do with writing checks I would think."

SMITH: "Okay."

PEJOVICH: "All of it together had to incorporate for the end result. I mean, you couldn’t do it without everything working. You couldn’t get to the point of writing a check if you don’t have everything else done, I wouldn’t think."

SMITH: "Were you aware that Mr. Petty was building a home and maybe some offices here in Smith County?"

PEJOVICH: "Sure, sir. We wired them. His house was wired with the latest technology."

SMITH: "Okay. And so would that be compatible with operating with other systems?"

PEJOVICH: "Sure. That was the part of the VPN. One of the boxes of the VPN, it was going to stay in Overton so that Mr. Petty can stay in real time connection with what was happening."

SMITH: "So even though the equipment and everything might be in Canada, he had sufficient equipment to stay right on top of things right here in Smith County, Texas?"

PEJOVICH: "He had enough equipment to keep his eye on what was happening."

SMITH: "Okay. And if he were the boss, he could make all."

COMMENTS: Points of the above that show the INTENT OF AL PETTY WAS TO SERVE HIS Business Owners for a long time – certainly not to run off with the money, or to escape the scrutiny of the Regulators, as government documents charged.

1)Al Petty sent IVAN PEJOVICH and associate to Canada to ENSURE a virtually seamless-Continuance of the operation, NOT to hide or conceal.

2)Al Petty’s PROVEN intent for the move was to CONTINUE – with an even more efficient system – the successful GUARANTEED FULFILLMENT of EVERY Contractual Commitment.

3)Al Petty’s EVERY INTENT was to REMAIN IN OVERTON TEXAS, his birthplace, and oversee the Canadian operations.

4)NO expense was spared to make sure that the new Home-Office of Al Petty was constructed and wired for the technology that would make it possible for Al Petty to REMAIN IN OVERTON AND SUCCESSFULLY Continue the operation of TeleCom2000.

5)EVIDENCE AND TESTIMONY via PEJOVICH virtually PROVED that ANYONE – the Prosecution – who would accuse Al Petty of INTENDING to abscond with the funds or accuse him of running a “Ponzi Scheme” were OUTRIGHT LIARS, GUILTY of DEFRAUDING THE COURT, THE JURY, 3,000 TeleCom2000 Business Owners and of putting Al Petty in PRISON FOR LIFE! (24 years @ 70 years of age – on his first and only “offense” or violation of the law!

(V4;P24;L4-10)

SMITH: "Describe the home that you wired out there, pretty nice home?"

PEJOVICH: "Yes, sir, it was. It is, I mean, we wired it with a ‘CAT SIX” and fiber technology. The latest thing was 60 drops of ‘Cat SIX’, which is a gigabyte connection that’s through that house, which it was designed to be maybe an office, or, it could have been a home that’s really high tech."

(V4;P26;L15-21)

SMITH: "And it’s your testimony that that’s state-of-the-art equipment right now?"

PEJOVICH: "When we purchased it, sir, there was nothing better on this planet. I mean, you couldn’t have gone and bought—some of the equipment had to be purchased from Japan and Europe and shipped out here, so there was not anything better that could have been bought at that time."

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