Blix v YMC App # 55 | 12-35986 | YCLT Opp w Exhibits

Case: 12-35986, 08/19/2013, ID: 8748363, DktEntry: 55-1, Page 1 of 23
RE EIVED
FOR THE NINTH CIRCUIT
Appellees,
DISTRICT
HONORABLE SAME.
HADDON DISTRICT
JUDGE PRESIDING
MOTION TO STAY PROCEEDINGS
Charles W. Hingle (1947)
Shane P. Coleman (3417)
500
Amarillo,
Texas
79101-2445
[email protected]

Yellowstone Club Liquidating Trust ( YCL T ) files this Opposition
to Timothy Blixseth's Emergency Motion Under Circuit Rule 27-3 to Stay
Proceedings ( Motion to Stay ).
Timothy Blixseth ( Blixseth ) seeks an order from this Court that
would stay a September 10, 2013 hearing on his Rule 9024 Motion currently
pending in the bankruptcy court. Blixseth also seeks an order preventing
YCL T from enforcing the $40 million judgment that the bankruptcy court
rendered in its favor on December 5 2012.

(Exh. A). In other words,
Blixseth seeks a stay o enforcement without having to post a supersedeas
bond, which is clearly inappropriate. The basis for the relief now sought
is
the alleged misconduct o the Honorable Ralph B. Kirscher ( Judge
Kirscher ). Currently pending before this Court
is
Blixseth's appeal with
respect to his efforts to disqualify Judge Kirscher from presiding over the
Yellowstone Club bankruptcy and its related proceedings, efforts which
Judge Kirscher, as well as the District Court on appeal, have flatly rejected.
Blixseth first moved to disqualify Judge Kirscher in 20 I0 alleging
that he was part some mythical grand conspiracy. Predictably, these
accusations have not been made against Judge Kirscher alone. Among those
Blixseth further seeks to stay YCLT's pursuit o other lawsuits.
{5290\00\00736430.DOC 11}

Blixseth has accused of conspiring or being biased against him are federal
judges and law clerks, attorneys and law firms involved in the YCLT
bankruptcy proceedings, and political figures and institutions, including the
Governor of Montana. (Exh. B at pp. 3-9) Blixseth's grand conspiracy
theory now even reaches to Washington, D.C., where in a recent letter
Blixseth added Attorney General Eric Holder and his Deputy, Lanny Breuer,
to the ever-growing list of individuals allegedly out to get him. (Exh. C).
None of these accusations have ever been found to have merit. Indeed,
Blixseth and his counsel have been sanctioned in another federal court case
in which Blixseth filed a $9 billion countercl im against the then YCL T
Trustee, Marc S Kirschner, alleging that the YCLT Trustee was part of the
same grand conspiracy involving Judge Kirscher. (Exh. D) Blixseth's
counterclaims were dismissed on the YCLT s motion to dismiss, and
sanctions of $90, 182.71 collectively were granted against Blixseth and Mr.
Conant because their counterclaim filing was made in bad faith and in
knowing disregard of Rule 13 and the Barton rule. Id.; see also Exh. X
(order granting sanctions, to be paid 1/3 by Conant and 2/3 by Blixseth)).
As the Honorable Gary A Fees, United States District for the Central
District
of

However, there is more: the voluminous evidence produced
by the Parties
counsel in other proceedings provides further support for
the conclusion that the Counterclaim was filed with
improper motive. t is apparent to the Court that Blixseth is
involved in numerous contentious legal battles in various fora
with Kirschner and a host of other entities and persons. In these
other proceedings, he has achieved some success, and has
suffered significant defeats. t is also apparent however, that
Blixseth views all of these proceedings as part of a vast
conspiracy in which his opponents the courts and persons
holding political office are aligned against him. His response
has been to engage in scorched earth tactics in which he
has
Blixseth first moved to disqualify Judge Kirscher in 2010, claiming
Judge Kirscher was guilty of all kinds of nefarious conduct. Not
coincidentally, that motion was filed shortly after Judge Kirscher found in a
135-page memorandum decision that Blixseth had misappropriated millions
of dollars
loan proceeds from Credit Suisse. Judge Kirscher, in fact, had
found that:
removed funds from the Debtor entities and attempted to
disguise the removal of such funds as a loan when in fact, the
money was a distribution to BGI and then Blixseth. Blixseth s
removal of funds from the Debtors was the primary, and
perhaps sole reason the Debtors are in bankruptcy today.
Blixseth v Marc S Kirschner Trustee o the Yellowstone Club Liquidating
Trust 436 B.R. 598, 606 (Bankr. D. Mont. 2010). The Bankruptcy Court
{5290\00\00736430.DOC I}

further concluded concerning Blixseth, [t]he overwhelming evidence shows
a pattern o deception s it relates to the use
o
proceeds. Id at 651. And finally, the Bankruptcy Court concluded,
Blixseth's fraudulent intent could not be more clear. Id at 664.
Less than three months after entry o those findings and conclusions,
Blixseth alleged for the first time that grounds existed for the
disqualification o Judge Kirscher. In an exhaustive 47-page memorandum,
Judge Kirscher painstakingly dispelled each
o
Blixseth's unfounded
allegations. (Exh. U). On appeal to the United States District Court for the
District
o
Montana, the Honorable Sam E. Haddon presiding ( Judge
Haddon ), concluded that no showing o bias, or prejudice or any lack o
impartiality by Judge Kirscher has been demonstrated. Rather, dispassionate
assessment reveals that extraordinary consideration was accorded Blixseth
and his position throughout the proceedings. (Exh. W).
Undaunted by these rulings, Blixseth pressed on and filed six appeals
relating to the denial
13-35192, 13-35196, 13-35197 and 13-35198). Apparently, he has also
recently filed under seal a Complaint
o

What motivates this man? Simply this. Blixseth looted over $200
million from the Yellowstone Club entities. Blixseth v Kirscher 436 B.R.
at 606. This act of greed was the primary, if not sole, cause of the ensuing
bankruptcies of each entity. YCLT brought suit against Blixseth seeking to
hold him responsible for this looting. After affording Blixseth an extra nine
months to prepare for trial, after listening to nine days of testimony from 24
different witnesses, and after reviewing numerous exhibits offered into
evidence, Judge Kirscher issued a lengthy op1mon detailing the
overwhelming evidence supporting YCLT s claims. Id As a result, Judge
Kirscher entered a judgment against Blixseth. Although he found that
Blixseth looted over $200 million from the debtors, Judge Kirscher reduced
the judgment amount to $40 million, on an application of the in p ri delicto
doctrine.
2
The fact that Judge Kirscher did not enter judgment in the full
amount of the looting is certainly not indicative of a Judge who is biased and
out to get Blixseth. Moreover, in a stunning display of lack of awareness,
in the Motion to Stay, Blixseth maintains that the alleged conspiracy, of
which Judge Kirscher is allegedly a member, called for Judge Kirscher to
enter hundreds of millions of dollars in judgments against Blixseth for the
plan to be successful. (Motion to Stay at p. 10). Obviously, Judge Kirscher
2
Respectfully, YCLT submits that the applications of in p ri
delicto
was
improper.

has done no such thing, having entered a judgment for only $40 million.
This bluster, however, is typical
of
Nevertheless, Blixseth now has decided he wants to endeavor to
undermine Judge Kirscher's integrity to escape the judgment. Blixseth's
desire has nothing to do with Judge Kirscher's conduct; it instead has
everything to do with Judge Kirscher' s rulings. It has nothing to do with
viewing the evidence from an objective standpoint; rather, it has to do
with viewing the evidence from the jaundiced viewpoint of a guilty man
struggling to escape the consequences of his own actions. It has nothing to
do with new evidence; rather, it has to do with the same tired, old arguments
Blixseth repeatedly makes and leaks to the press to smear Judge Kirscher -
arguments that not only Judge Kirscher has dispelled, but arguments District
Court Judge Haddon categorically rejected and arguments YCLT has shown
in its rief in 12-35986 to be totally lacking and without merit.
II SUMMARY OF ARGUMENT
Although Blixseth sets forth a plethora of alleged grievances in this
Motion to Stay, the vast majority are simply regurgitations of issues that he
has raised in the past, which have been flatly rejected below, and which are
currently pending in this Court on appeal. Frankly, the older
misrepresentations set forth in the Motion to Stay are too numerous to refute
{5290\00\00736430.DOC }

herein, but have been addressed in detail in YCLT s appellate briefing in this
case, and will be further addressed in briefs filed in other pending appeals.
Blixseth's entitlement to even seek emergency relief under Ninth
Circuit Rule 27-3 is highly suspect given that he has made no showing
of
irreparable harm as required under the Rule. Nevertheless, as specific
grounds for seeking emergency relief, Blixseth claims that since his
disqualification motion was denied, he became aware
of
additional
evidence that supports his efforts to disqualify Judge Kirscher. The
remainder
of
allegedly retrieved from his ex-wife's computers; and (2) documents printed
off the internet that allegedly demonstrate that Judge Kirscher currently has
a relationship with the law firm he was associated with prior to becoming a
bankruptcy judge some 3 years ago.
As will be shown, there are senous issues with respect to the
authenticity
of
the evidence allegedly obtained from the computer of
Blixseth's ex-wife. Yet, Blixseth fails to inform this Court that there are
serious issues that have been raised as to authenticity
of
these documents.
This failure to be candid with the Court is strikingly similar to the actions
of
some of Blixseth's counsel in a case pending in the United States District
{5290\00\00736430.DOC I} 7

Court for Idaho wherein Messrs. Flynn, Conant and Stillman were
sanctioned on March 29, 2013 for improperly relying on certain evidence
without revealing other existing relevant evidence to the Court. Next they
rely on evidence from the internet. f Blixseth (or his counsel) had
conducted even a cursory review o that internet information they would
have determined that the information was unreliable. Simply stated,
Blixseth's newly discovered alleged evidence does not in any fashion
support the relief he seeks.
III. ARGUMENT
Blixseth and his counsel are besmirching the character o a sitting
federal judge based on evidence they ought to have reason to believe (1
has been altered; and (2) is demonstrably unreliable.
A. Documents allegedly retrieved from his ex-wife s computer
Blixseth refers to two documents that were allegedly obtained from
the computer
his ex-wife, Edra Blixseth ( Edra ). Specifically, there are
two memos that are said to be attached as Exhibits 13 and 16 to the
Emergency Motion. While these documents are set forth in the voluminous
exhibits tendered by Mr. Blixseth, the YCL T cannot ascertain whether they
have properly been identified
Exhibits 13 and 16. Accordingly, for ease
o reference herein YCL T attaches those documents as Exhibits T and V.
{5290100100736430.DOC I} 8

Blixseth repeatedly refers to this evidence as authenticated when
Blixseth knows full well that it is anything but authenticated. Significantly,
Blixseth fails to tell the Court that there are serious questions about the
authenticity of this evidence. Such failure is simply bewildering (and
frankly sanctionable) because Blixseth and his counsel are fully aware of the
serious authenticity issues with this evidence. Specifically, this issue was
brought to their attention in connection with a recent challenge to the Marital
Settlement Agreement in the divorce proceedings between Blixseth and
Edra. In that proceeding, Blixseth brought a Motion for Sanctions and
proffered these exhibits in partial support of that relief.
n
response to that
Motion for Sanctions, Edra and her counsel filed affidavits and supporting
documents that conclusively demonstrate that the evidence is forged.
(Exh. E). On January 31, 2013, the Motions for Sanctions in the divorce
court was taken off calendar without prejudice. (Exh. F). Blixseth has not
re-filed the motion.
Exhibit T is allegedly an eight-page memo from Edra to her lawyer
regarding a Marital Settlement Agreement (the MSA memo ). In that
memo, Blixseth points to the following statement as evidence of Judge
Kirscher' s alleged bias and corruption: Remember we have added help
there from the K Judge who loves us, and hates Tim and Mike Flynn. At
{5290\00\00736430.DOC I}

this point they could not get a decent ruling in their favor from the Judge
i
they tried. Either way SB and BS have things in place in that courtroom to
help us. In the Response to the Motion for Sanctions, however, compelling
evidence is presented that this portion
o
is
Specifically, Edra's lawyer provides a September 20, 2009 e-mail
from Edra wherein she attaches the original MSA memo. (Exh. E). The
original MSA memo at first glance appears identical to the exhibit submitted
and relied on by Blixseth. Closer examination reveals, however, that the
MSA memo provided by Edra to her lawyer does OT
contain the
statement set forth above. Id.) Additionally, Edra's lawyer at the time the
original memo was drafted, asked Edra to cut and paste the MSA memo into
an e-mail so that he could read it on his Blackberry. Id.) Significantly, that
contemporaneous copy
the memo in the Blackberry e-mail (which is also
attached to the affidavit) does OT contain the statement set forth above.
Id.) Simply stated, it is abundantly clear that the evidence submitted to this
Court is not authentic and has indeed been altered.
3
3
Blixseth boldly proclaims that in her deposition in December 2012 Edra
authenticated the altered MSA memo. This is an outright misrepresentation
o the record. The deposition transcript referred to in this regard consists
mainly o sparring between lawyers as to whether the document can even be
used. In her deposition Edra was shown the seven-page altered MSA Memo
{5290\00\00736430.DOC

never mentions even the hint o a problem with authenticity. He has thus
failed in his duty
candor to this Court and clearly has not advanced any
basis for the extraordinary relief he requests and his wholly unfounded
attack on a highly respected federal judge.
Nor does the affidavit from Blixseth's so-called computer expert
advance his cause. The YCLT, to date, has not had access to the hard drive
so it has not been able to conduct its own forensic examination, nor has the
YCLT had the opportunity to cross-examine Mr. Blixseth's so-called expert.
However, the affidavit does confirm that this document was accessed and
altered after Ms. Blixseth forwarded it to her lawyer on September 20, 2009.
With respect to Exhibit V (the MSA Bullet Points Memo ), Blixseth
again points to alleged statements reflecting some type
o
Kirscher has been improperly influenced. According to Edra, the MSA
Bullet Points Memo is completely manufactured. I didn't type it and I have
never seen it before. (Exh. E). Furthermore, all Blixseth's so-called expert
can offer with respect to MSA Bullet Points Memo (which is a pdf) is the
time at which it was allegedly placed on the so-called bare drive.
that, as shown, at first glance has the appearance
o
original MSA memo. Notably, the statement upon which Blixseth relies
(and which was added) appears on the last page
o
the seven page document.
What is abundantly clear, however, is that Edra did not authenticate the
alleged statements in the document on which Blixseth places so much
reliance and asks this Court to do so
s
well.

Blixseth repeatedly makes the feeble allegation that the so-called
expert somehow proves the foregoing documents were created at a time
when it is believed the computer was in the exclusive control of Edra. t
does no such thing. Additionally, one would think before making such
serious allegations against a sitting federal judge that such allegations would
be confirmed and that Blixseth and his counsel could do better than simply
setting forth their belief. This stands in stark contrast to the specific denials
set forth in the affidavits
of
Making matters even worse, Blixseth and his counsel allegedly
received, and rely in the entirety on, this information from Dennis
Montgomery, a former business partner of Edra. (Exh. G). As such, the
credibility of Montgomery is critical to the resolution
of
this matter.
However, according to one litigant who brought suit against Montgomery to
block his discharge in bankruptcy, Montgomery has a pattern of lying
under oath and has a long history of fraud and perjury. (Exh. Hat pp. 5-
6). Further, according to this litigant, Montgomery's modus oper ndi is to
conceal documents and money. (Exh. Hat p. 5). This litigant is none other
than Michael Flynn, one of the attorneys representing Blixseth in connection
with this motion. Mr. Flynn
is
J
of

Montgomery bankruptcy case, Flynn alleged that Montgomery defrauded the
United States government. To that end, Montgomery asserted his Fifth
Amendment rights over 200 times in the deposition that was taken in that
case by Mr. Conant on Mr. Flynn's behalf. (Exh. J). In this same
deposition, Mr. Flynn accused Montgomery of being a computer hacker
and a fraud. (Exh. at p. 230).
The above-referenced lawsuit stems from a sanction award Flynn
received from the United States District Court in Nevada against
Montgomery. In that action, the court concluded that Mr. Montgomery's
September 2007 declaration contained untrue statements, which he knew
were untrue. (Exh. K at p. 1 . The court further ordered that a copy of its
order was to be sent to the Office of the United States Attorney. (Exh. K at
p. 53).
Despite the foregoing history, Blixseth (through Flynn and Conant)
now submit to this Court computer related evidence that was allegedly
obtained from the same Dennis Montgomery who in their own words, has a
long history of fraud and perjury and is a computer hacker. Apparently,
when Montgomery is providing evidence that is allegedly helpful to their
cause, his past pattern of lying under oath IS of no concern. YCLT
submits that for this reason alone this Court IS entitled to, and should,
{5290\00\00736430.DOC

disregard entirely everything provided by Montgomery, who, according to a
United States District Judge and Blixseth's own counsel, is a liar.
Significantly, this is not the first time Blixseth's counsel (with the
exception o Mr. Ferrigno) have played fast and loose with a Court when it
comes to evidence. Specifically, in March
o
2013, Messrs. Flynn, Conant
and Stillman were sanctioned by the United States District Court in Idaho (in
a case where they represent Mr. Blixseth's son) for improperly relying on
certain evidence. (Exh. L).
In that case, counsel submitted an unsigned
declaration from a witness to the Court in connection with a pending Motion
to Dismiss claiming that this whistle blower feared retaliation.
Subsequently, counsel obtained a sworn affidavit from the witness that
differed from the unsigned declaration that had been submitted to the Court.
Messrs. Flynn, Conant and Stillman failed to reveal the existence
o
this
sworn affidavit and continued to rely on the unsigned declaration. In
ordering sanctions, the Idaho District Court found:
4
The Idaho District Court stayed the deadlines relating to recovery o costs
and fees and for making payments pending resolution o a motion to re
consider the sanctions order. (Exh. M). On August 15, 2013, the pending
motion for re-consideration was denied, however, the Court indicated that it
was still considering relief requested by Mr. Stillman with respect to the
imposition o sanctions. (Exh. Y). Counsel also have pending an Objection
to the District Judge with respect to the sanctions entered by the Magistrate
Judge.

Plaintiffs' counsel had a duty of candor under Idaho Rule of
Professional Conduct 3.3(a)(l) not to knowingly 'make a false
statement of fact or law to a tribunal or fail to correct a false
statement of material fact or law previously made to the tribunal
by the lawyer.' Plaintiffs' counsel's failure to file the signed
statement of Mr. Miller, once it was received and in the context
of representations in writing and orally about the facts and
circumstances of Mr. Miller's unswom testimony, constituted
the equivalent of an affirmative misrepresentation. The signed
'affidavit' was not the same document
as
declaration. The statement of fact that the witness, Mr. Miller,
would not sign a statement under oath because of fear of
retaliation was no longer true, even if true at the outset, the
moment he did sign the affidavit. Further, Plaintiffs counsel's
failure to remedy such matters is a breach of a lawyer's duty
'duty of candor to the tribunal' (sic) which warrants 'reasonable
remedial measure.' (Internal citations omitted).
In addition, Mr Conant was also sanctioned in another federal court
case in which Blixseth filed a $9
billion countercl im
against the then
YCL T Trustee, Marc S Kirschner. See Exh. D) In that case, Blixseth
alleged that the YCL T Trustee was part of the same grand conspiracy
involving Judge Kirscher. Blixseth's counterclaims were dismissed on the
YCLT's motion to dismiss, and sanctions of $90,182.71 collectively were
granted against Blixseth and Mr. Conant because their filing was made in
bad faith and in knowing disregard of Rule 13 and the Barton rule. Id.; see
also Exh. X (order granting sanctions, to be paid 1/3 by Conant and 2/3 by
Blixseth)).

Unfortunately, counsel learned nothing from these experiences. They
continue their pattern of failing in their duty to be fully candid with the
Court. They ought to be sanctioned for it.
B. Judge Kirscher s alleged relationship with his former law
firm.
undisclosed relationship with his former law firm, Worden Thane, P.C.,
which he left in 1999 when he took the bench. This is important, posits
Blixseth, because Worden Thane represents the Class B Shareholders (the
appeal relating to the Class B Shareholders is 13-35113). In other words,
Blixseth accuses Judge Kirscher of an improper relationship with the law
firm
of
one
creditors.
What is the smoking gun that proves these serious allegations? The
internet - which we all know never wrong. Blixseth attaches as evidence
a web page from some website called data.com. This web page does list
Judge Kirscher
vice-president of the firm. (Exh. N). However, if one
clicks on the name of the firm and then clicks on the firm's web address on
the next page one will see that Judge Kirscher is not listed as one of the
attorneys on the firm's website. (Exh. 0). Moreover, there are other
mistakes on the data.com site. For instance, Robert Terrazas is listed
as
a
vice-president also, yet he is not with the firm, but has his own firm, The
{5290\00\00736430.DOC I} 6

Terrazas Law Offices. (Exh. P). Likewise, Benjamin Williams is no longer
with the firm. Finally, Amy Smith, who data.com lists as a second year
associate, has been with the firm since 2008, making her a fifth or sixth year
associate. (Exh. Q). According to data.com, Ms. Smith's information was
last updated on October 19, 2012. That is obviously inaccurate. Thus, the
fact that Judge Kirscher's information was allegedly updated on September
19, 2012 is suspect to say the least. The fact o the matter is
i
you are going
to accuse a federal judge o misconduct, you should not stake your claim on
unreliable information from some obscure website that obtained its
information from who knows where or when, with no apparent effort
whatsoever to confirm the accuracy o those serious allegations.
Blixseth also states that according to intelius.com the email address o
[email protected] is currently associated with Judge Kirscher. Blixseth
attaches the web page from this site to support his claim. The section above
the email address that is entitled What is an Email Lookup? states that it
contains current and historical information. (Exh. R). No one denies that
Judge Kirscher once had an email address at Worden Thane since he once
worked there. The information from the intelius website, however, in no
way proves Judge Kirscher has a current email address there. In fact, the
attorneys from YCL T have attached, an email it received recently from one
{5290\00\00736430.DOC I} 7

o
S .
This email shows
that Worden Thane has adopted a new e-mail address (wordenthane.com as
opposed to wthlaw.net). More specifically, Mr. Bender s email address is
[email protected], not [email protected]. (Exh. S).
Finally, Blixseth s citation to an article in the Sacramento Bee is
quintessential Blixseth. t is readily apparent from a reading o the article
that the source for the information concerning the Complaint o Judicial
Misconduct against Judge Kirscher is Blixseth or one o his legion o
lawyers. In other words, Blixseth feeds scandalous information to the press
and then cites the article from the press as support for the information he
provided.
IV. ON LUSION
As the Court can undoubtedly ascertain from the tone o the briefing
herein the YCLT has grown exceedingly weary o Mr. Blixseth s constant
efforts to divert attention away from his own wrongful conduct and
increasingly desperate attempts to avoid the day o reckoning and his
constant abuse o a fair and highly respected federal court judge.
Candidly, it is impossible to tell the depths to which Mr. Blixseth and
his counsel will go to avoid the consequences
o
Blixseth s wrongful
conduct. The attack on Judge Kirscher is simply inexcusable, and wholly
{5290\00\00736430.DOC I}

without merit. Likewise, the ever-growing list o those allegedly conspiring
against Blixseth is simply too lengthy to set forth herein. Recently, the
number o alleged conspirators expanded when Blixseth added U.S.
Attorney General, Eric Holder, and his Deputy, Lanny Breuer, to the ever
growing list o individuals out to get him. (Exh. C . In an eleven-page May
29, 2013 letter submitted to the Public Integrity Section
o
Department o Justice, Blixseth's lawyers (including Messrs. Flynn, Conant
and Stillman) allege that [i]n 2010 the Montana political machinery
operated by Schweitzer [former Governor o
influence o
Burkle and Byrne [two more alleged conspirators] then turned
directly to the Holder/Breuer DOJ to directly 'target' Mr. Blixseth with a
baseless criminal investigation, and derail the Montana federal career agent
investigation o Edra. In a word, ridiculous.
t is time for this misconduct to end. YCL T submits that this Court
should summarily reject Blixseth's Motion to Stay and sanction him and his
lawyers for failing to be candid with the Court about the doubtful
provenance o the evidence on which they relied in bringing this emergency
request before this Court.

DATED this
I6' dayofAugust,2013. ~
Robert . Bell
800
Amarillo, Texas 79101-2445

CERTIFIC TE OF SERVICE
I hereby certify that on the 16th o August 2013 I have mailed the
foregoing document by First Class Mail postage prepaid or have dispatched
it to a third party commercial carrier for delivery within 3 calendar days to
the following counsel o record for Blixseth:
Christopher Conant
Denver CO 80202
[email protected]
PLLC

Case: 12-35986, 08/19/2013, ID: 8748363, DktEntry: 55-1, Page 23 of 23 MULLIN•HO RD•BROWN•LLP
ROBERT R BELL PARTNER
Ninth Circuit Court ofAppeal
T
MOLLY C. DWYER CLERK
FILED
D TE
Re: Emergency Motion to File Under Seal; Cause No. 12-35986
Dear Clerk of the Court:
INITI L
Pursuant to Circuit Rule 25-5(b)(9) and Circuit Rule 27-13(c), please find the enclosed
documents submitted for filing in paper format:
1.
Motion Under Circuit Rules 27-3 and 27-13 to File Opposition to Emergency
Motion to Stay Under Seal;
2. YCLT s Opposition to Timothy Blixseth s Emergency Motion to Stay
Proceedings;
3. Notification of Filing Under Seal Pursuant to Circuit Rule 27-13; and
4. Proposed Order granting Motion to File Opposition to Emergency to Stay Under
Seal.
I f you have any questions or comments concerning the filing
of
these documents in paper
format, please do not hesitate to contact me. he Notification of Filing Under Seal is required
to be filed via ECF, please let me know immediately as I will do so.
Very truly yours,
})/+fu I
R o ~ ~
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endant4
ocaton: oyal ed. dg
. 55 . em e St7
L o s CA

ase 11-cv-O8283 P ocument 30 d 04 1/12 age 2 Of 23 age D /598
1 O THE PARTIES D THEIR TT RNEYS F RECORD
2 PLEASE E TICE hat n y 21
,
at 30 a. Or as son t eafter
.
ees, ed ates D
,
.
,
.
scher rsch as d T
b L ng st ), d h y des espectfuly m rt
.
.
.
1 1 e ee oves or such elef on e folow g grou s:
12 l
,
3 ed
,
ec se B set en al oper ed hs C er agaist
14 rusee ersonaly in conaventon o ed
.
.
.
,
and was fed or
17 oper urp es o rass and int ate e rus
. ct aist se an
.
19 se of al rocess d u
.
0 s oton s eig ade g e conerece f coun l t o
. . 7-
,
,
,
.
OTICE OF OTION AND MOTION FOR ANCTIONS; DEC RATION OF
RIN A. LASSER

e 11-cv-O8283- F-P ocu nt 30 ed 04/11/2 age 3 of 23 Page D 99
1 s oton s ored by e acc anyig em andum of ois an
2 A ories
,
3 cocure y erew
,
as el s a1 dings and papers on e w h te C ur n t
4 case
,
er fact d m s o ch t rt ay al d su
5 oter oral and written aruments or evienc at ay be resented at any hear g on t
6 oton
,
Stven Jay Kat an0
BALEY & LA R, LLP3
5 ow one ub qudatg
dm ed Pro Hac ce6
7 LLN OARD & BROW , LP
en L
18 John
elow on b Lqudat g Tru0
dm ed o Hac Vice
2 1
OTICE OF OTION AN OTON FOR SANCTION ; DECLAM TION OF
N A. LASSER

ase 1-v-08283 P ument 30 ed 0411/12 ge 4 Of 23 ge D 600
1 u F E S ts)
2
3
.........................................
...........................
wJt d l 17 ..-.........
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
...............................-..........
.............................
.
13 C
. seth ti es o el e Is es at ave ready ee
14 ecied 15
TICE F TIN D TIN R TI S; A TIN
N . SSER

ase 11cv-O8283- F-P cu nt 30 ed 041112 ge 5 Of 23 age D 60
1 TABLE F THO TIES
ases
lll .. .. .. ..

;
8 dwards
, - a n-v z-h 1 re
kll D ()) ö ö ö D 1) $ 50 () 1 ) .... ................................................( y 1 :
10
11) re ., 6 5 8 17.2 (1 (1 (2ir. 9 8 ..... ........ 1
ln ell ton n C 36 B 8 ( t. 2
1 3 e ()ll A. 1lT) s . (r () ., zl (2 ir .... ................ ................... 1 1 ,
4 erght an
1 5 - - 13 e 1 1 5
.
3 (1 zl (tl) 1 9 Tr ........................ 1 1s uto. . . c. . a
1 6 O
h v. s, 030962 4 W 60 6, *4 ( ne 10, 04)13
1 7
,. I3ltlslz zpk11 s 17 (2, 17.3 (1 (1 (2. 1 9 9 6 ) .... .... 8
11 )re - Ir ?. 1 , 21 5 5 17.3 (1 5 6 5 tll (2. : 0 0 6 ) . 1 6)
th .)rï11s A?

, q 1 2 (1 6 5 8 5 ) ...................................................:4, 1 21, 1
1 est oast heater or
.
E F TION AND OTIN FR S TI ; ECLA TIN
BR N A. LA SER

ase 2:1-cv-08283 F-SP ocu t 30 ed 04/11/12 ge 6 Of 23 age D 602
1 . I TI
,
ub L g T st ), resectfuly sub ts
4 s on for S ) st t d C erclm nti
y L as ed as of ed P n a
.
7 s oton or anct s s eig ed conem oraneously h he rusee
otion to D ss oti o D f set nter
seeks, ut bass, es n t nt of x B n D rs 0).
10 n ort of s on for ct s, e ruee resectfuy states
1 1 1. xs s ounterclaim shoud e smssed
,
and sanctons sho d b
12 sed, ec se seh fed s ou ag st e stee ersonaly w en t
ruee pers ot ntiff n t ater. r. scher as a eared in h ro
4 as e ee of e Y T p t o a cou oved C on O r ppov
5 e n or eorganzatn of e elow e
,
and pursant o cort-aproved
16 ass nm t f s c l ; e has ot apeared in any al aci
.The
17 rustee ses solely as re ese ate of e T t. e beneficiares of e T are
18 nu ous orer crediors of e ow one C b Debtor
. ee Request for Judcial
19 ce , s. H rd ed nt an of zat ) and l rder
0 g an
1 e h t as exp ed at a) cou erclm er e 13 st
2 ag st an op sig par ' s a ary sued by a rttee may a ert a un rclai
23 ag st e tru , ut ony if e tru ee is an op g part' n te mean g o
,
25
1 se s ou eos reqest r am es n te am nt of x b on s s ot
6 ased n w r act
,
. ee ank
st 8 F 9 (d Cr. 1) ng tat en e part
5 m on ot red e ev ce sup a co on at
. '
OTICE OF TION AND ON OR SANCTION ; DECLAM TION OF
AN . LA SER

ase 11-cv-8283- F-P cum nt 30 ed 04 1/12 ge 7 of 23 ge D 603
ot bject to n h al cap n r
d 8 0 (h Cr. 7) (ci tedl; ort rea
3 n 6) fored by t sam n to di rent
cap es are eraly treated as ransact o dfer al ers es.
5 . anctons e also arranted ecause seth aly red th
6 rtn ctrie, a kn n and cear recedent n te nth C cui. y g
seth k y v ed t arton st hree day er
ed es strict rt for stct a sm ed B se clai er
,
202
10 8, at # 1 . ar. ssig B set cy and s e-l
1 1 s st 10 rup ed profess s and t r aw sl
12 g) ssed st rofessi
13 h raises e same s co racy-based s ag st e stee
14 e ntercl at e as raised ag nst ac aly ev y p essi l aderse o h
15 n te elow e ankrupcy roceed s. seth has even falselv
accued a federal
16 cort f estruct n of ev ence and i ro er p tical luece. se
,
18 esp y w ere, as ere, ese attorn are ess ally tn h se'attorn s or o ha
19 o n rofessional ep ce and ar eholen to se
0 se s unerclm as o reasonable asis n aw or act. e ounterclaim
,
and
2 dicial resorces. t s so sees o i ate e T . erm ng s d o
3 gaon l e a c g ef t on banrupcy rutees and proessi als
4 ou ely w k on suh matters. ccordi , s ourt sho d both d ss set
5 ounterclaim d i se sub antal sanctons n hm and hs counsel suant o
ent autori urt and 2 192
7
8 /
2
TICE F N A D M TIN F R S TI S; ECLAR TION
N . LA ER

ase 2:11-v-8283- P ocu t 30 ed 04/1/12 ge 8 Of 23 age D 604
1 .
2 e ste s e est n a ng, er-grow g e of ets f set
,
4 hen te edt sse oan was executed, ong efore e ees ntent as
5 ee f he T in 209.
6 g e xseth as accused of con g nst m e: ) es
aw ed i rupcy roce s; 2) orne d 1aw
8 n te b rupcy roc ' ) l res d i s, g t
ove or of ont and he ontana ent evenu
10 . et s cks n e ou
1 1 se s cks n e ous an after e orabe alh
. scher
12 resi for ed S es rupcy C ct a, ed an
.
ound
14 at record i dled w ere seth brea ed h ary du
15 n C 36 B 8, 70 ( 10) -14
16 ce at e, seth as y aced Ju e rscher and s aff
For
17 nst ce, on Novem r 1, 10 h ted a o se oton to D qu y B kruptcy
18 ge r. ee , . A on to Dsqu y y J e
19 seh rageo y arged
0 e r as ed t e e
ankrupcy peton as fied and pan was oposed n good fai 1
Jude K scher as inv ed and e ertaied ex parte advcacy
22 against
sets cousel and r. set. Juge K scher
ad ex are co uncaon n a h el oss or al3
rters C concer g C s aror's ag a or
24 elow e b ankru
,
on ag t r. set; Juge s law k has5
enagd n ex pare com caons h one of . et
6 adversares
,
rg g h ersary to fi ze a se emen h M
y h ef e r. h coud eneg' erus es dg
rscer ruled on ortant ot ns against r. xseth before
8
NOTICE OF MOTION AND OTION OR SANCTION ; CLARATION
BR N LASSER

ase 11-v-O8283- F-P ocu nt 0 ed 4/11/2 age 9 f 3 age D 60
ed u r e es; e rscher enered a $40 on
jud ent t r. h before . h had
2 y o sp d o e otion o rec er. . .
3 . at
4 ore rece , urig a arch , 12 earg fore Jude scher, set
5 unel aleged i er ol cal ence on te ou . e ourt onded a
6 f ows:
,
e (m neq ad a meetg h e or, t
eh acts ourt or aff s court? Tat s tot
9 i rect
1 1 E : et e set e ec d ht
It t.
ot ad a scusson w h a gov or aou ater. It 2
e t rop se ru seri sl fee
13 ater sulted y some f e end
erences,
15 See R cri earg of ch 6 12), at
16 , xset s nsel sted at e same hear g at Judge rscher
17 esroved ence:
1 8 MR
. : . . . for am e, du g A s t sa
9 e e our s n e e ege og h
tlln d tese arious didual
. et n Juy 5 , 0
cort said tere as on on
2 1 E : , e oter oint I t o ai : u aised
s, and te e ais. ave i y pssessin what as2
o me at e couq a1 at as gi o m d I t
3 se at u estg at s rt or s erks
as t an at as e isi at ow ou ave a4
factal o make tat d o em brig i
25 . FL : es, our onor, 1 do.
. .
6 e
,
,
o wt:
E F TIN A D OTION R SAN TI ; ECLARATIN O
RIN . LA SER

se 1-cv-8283- F-P cum nt 30 ed 04/11/12 age 10 of 23 age D 60
o clear up g t
ynn tried to s gest. r. . ere re f r sk
2 evre rieht re. ere are e er
ai hat er anded
o e durie e rial n 4. d I e eceptin
, ,our com ent at ere s one or ere s - - t suees
4 at hev ere e.
ee at 62 ( asi
6 sets l e d coduct coce g e s s also aparent m h
o h fe, dra set. For ex e, a t ng
so y e . d te corup e are al
. . . . . h 1 forgt y D tri o
. . .stand b
,
ou ar

10 Y
ou were so greed ou sh d have been happ o get
1 1 and .
. . .oh o, u and at y p ed t chara
and waned my haland gues wat . . . here as a f ho2
red ou d tey are g to hau u t
3 st f r
ou on now e (cj 4
ak deal. ou tought ou were covere h a
15 t e. . . . ess , e e al ees a
er Rc) an h ho get . T about o com6
are rst n the lst. njo e ri
17
18 ee at 5 (ext ess rom h to Edra seth (Sept. 14,
19 6 P ). set ct tes t o i e, eaten
0 d er ate ex ous on
1 . xset s acks on awyers and aw
22 n e 8, 1 1, seth rou t a e- ng d ri us sut agai
early a e att ey an aw firm erse o h n te ban ptcy proceedng n t
4 orm f e ed L uit ait essi
. sets dera g clai
,
,
n m racce fr g to discl
.
set
8 accued a um er f als, clding e folow g ankrup relte
5
TIE F TIN A D M TIN FOR SANCTI ; CLAR TIN O
N A. LASS

se 1-cv-0823- P ocu nt 30 ed 04/11/12 age 11 of 23 ge D 607
1 rofejsi als and enties n e cas
2 Stephen , : an f e ecued ediors om ee
3 gt , ohn & Rob on, : a w 1 ased n , on a
af ed w n of nsecu d Cedors om ee'
5 James . . : ebtor's ou el
6 atens eteran, ahl & Geen, : a w fm based n ngs,
7 onana and afilated h ebtor's unsel
8 J. omas ecket, : ou el o he ecued edi s om ee;
9 arsons ehe & Lat er: a aw fim ased n alt ake , ah, and fiated
10 h unel o e ec ed ediors om ee
1 1 omas . ch n. : or's ou el;
,
13 af ated h eb r's ousel
14 am el . : a cial of e rossllaror apal art s;
15 sslarbor apal arters: an es ent firm based n ton, assachsett
16 d affi ed w h eo anzed ebor; an
17 John oes : er or er y ay e, t r od sure.
18 ee ed by set
19 n shrt, seth accused at ey even rown f ch g s ciary dues
0 o B eth and of cooperatg w h Mr. se s pp ents o conceal s ow
2 1 ractce and as reqested by said op s en led uder h to assit os
2 st r. set . at
3 krupcy Judge er's y ed ar s y h n -14
ee JN emor um eci . n 10 ge
5 cl ed that:
TICE F TIN A D TIN FOR CTION ; ECLA ON
RIN A. SSER

se 11-cv-8283- F-P ocu nt 30 Fied 04/11/12 ge 12 Of 23 age D 60
seh clais at row s aleged v at s of B se
rne-cl e has t ted ect of e t
2 s ater. en e seri sness f e egat , he ou
ructed e C ttee to aly ce co es of se
emais com catons . . . t origi ed fm ow . T
4 ttee ed h e urs request . . . . e ur
carefuly rev ed each of e emails and foud . . so
,o ev ce tat ron ated seth s eycl
6 ri e. n , seh aied o show any l sclosure
f orneyclent com uncaton. eths ens
oint ere nothi aseless ea s iened to
8 eral ese rocee
ow on ai 36 asi
0 e ecent , as oned above, e ontana t ourt concluded at
a)1 set clais are bjec o te Bartn d e, d no ecep
12 nce B seth did not first seek eave from e ankrupcy C urt ore he fed h
13 ct rt es ot e subject atter on er
. .
15 2012 L 691598, t *2
16 roughut ese ri s and exatous atn rocee s, seth and
17 orneys ave sent a steady stream f da g em s and leters. or exam e,
18 se s co sel, hristoper J. ant and p H. St an, ade e foow
,
20 B et
ou e s en dra'sj esen s at e v 1
en eston you en ties as a law er de
2 ont a es f ofssonal dut
. . . .1 l e
u have not ed M . am on has d ex p3
co catns h ge K ch and hs saff cerng
24 e s or e elow e ountain
. e ook
ss d quest g Mr. son at s dep on
6 se er s at far
ee R at set orn
28 e ot
,
e aw er for s ex s anrupcy rutee, an ey at
7
RIN LASSER

se 2:11-v-O8283 F-P ocu ent 30 ed 04/11/12 ge 13 of 23 age D 60
1 s, acD d & , , . 9, 1 1 35 ). n seara
2 corres dece, r. Sti an states:
1 e ts sep e concurence o make sre at u,
clen, d a1 er resp sie ersons de and te M
4 seth nt s to e a oton or an ons ur ant o
(or 1 as e case ay be) st erson a
aw er at es o assert ese f s cl s a
6 h
ee rom p H o D 2, 11 67 p
8 . seths clts n ol ci
9 n anoter proceed
,
h ac ed te Gov or of onana d hs saf
10 cing legal ers agait m ugh e
. s cousel op d durig a
qo g suport for for e C r. or)
he G or of ntana ad hi af
. . .
'
on to M h Subpoen at
15 s cou el aded urig at ame arig t e ovem r as
,
.
s o rse p
18 ch arer organzation: e stra e branch of e goernment of e Sate of
19 ontna
. r. eth beleves at e Movants had n er s scussions h gh
,
rel g o Movans' an
.
NOTICE OF OTION AND MOTION OR ANCTIONS; DECL TION OF
RIN A. LASSER

se 11cv-08283- F-P ocum nt 0 Fied 04 1/2 age 14 Of 23 age D 10
1 . xset s rent ck n e ru ee
2 n ch , 12 - early seken 7) ears r h s hat vari
cospaces ag st started - se al ed t ast son h co d t k o
4 as a ar t n te conspracies: e rust z e rustee was ap ed by t
ankruptcy Court 09 and scceeded to a1 e assetand clai ebtors
6 n ths se, seth all es n su y at e rustee s erso y e o
7 ecause e T and its rustee al edy ae te taw s'' f edt Susse an
8 rosslaror, ou erclaim at 1-, d f er at e Y T and is stee soal
9 are ow e riary i rumen y in C t sse and Cros aror en
10 r scheme aaist r. xseth to defrad Mr. seth by exractng from
.
2 61.
13 ese are t ew' clais y et, al ough ow nam g e rusee
14 didu y cert y s . In fact, n A -14 tese very issues ere set t by
15 seth in t ed Jont al rder retal rder' ed on F ruary
16 ee R al der). he P al er as app ed y t rt
on Fe uary 18, er) ed f
18 rial ere e ow
19 (1) er e rust's ntercl s st seth
) arred y e rusts ack of g ec se t s cotrolled
v a rt o p ci ed in the aleaedv bd behavor'
2 1 an
22
seh has owever, ade a hab of hreaten g bankrupcy tru
. , e.s 3
,at rom hri er J. ant h s o D
,
1 a 2 p ) ( e o reason e T ee s se g to keep n te M
5 cy rt se e ad h s w at e ge e i
sed st r. set ); ee j from p H o D6

25,
59 p r. set ds o hd you d y ee l
for all s, attorneys fees d o er es . . . rough san ns and a alious
8 prosec n on
OTICE OF TION AND MOTION FOR SANCTION ; DECLA TION O
BR N . LASSER

e 11-cv-8283- P ocu ent 30 ed 04/1/12 age 15 of 23 age D 61
(2) er e rust's ntercl s st h
arred as a rest f rox ate causaton by e conduct
2 er artes, ng t ot ted , e n
ra xset, Sam yrne and ros arbor ap al
art a p ch e f e eb s bv f e a C er
4 etitin n d fai
Sec (14and V 9) asi ded
6 e ankrupcy t nsi ed 1 f ese s, and y jec
7 . o ote om e ve passage m e ankup y Cou ' ain opnion
8 ch was shed after e ankruptcy Court conducted a o-eek tril over he
9 course of everal nts:
10
1 1 e ts , e arg t red r n s case s en redt
sse and e eti n Lenders. v a sucessr 2
e eb s. eth hs sh n no e ence o seeest an
3 rone do : bv e ebtors. arlv. T s not
ccessr n erest o E a d e . o date. as 4
reed w h B et s d cospracv teorv reard
15 vrne and ra. us. e ourt s ot onvinced hat
as clean s n thi er. oreov e edi se6
as erm ed o a t ur f e s n em s o te
17 dv ory ard, e rt s ot co ced at edt se
contols . e ourt also aerees h Y T at 8
ba s exis at ever pon w ch any m con uct hat
9 have een enaaed n bv edt Susse oud e pued
YCLT.0
el one M n C 6 B at 5 ( added).
3 es e ese , and despie e adverse emoradum of ecion ented
4 aist , h has aacked t y ed T stee personaly for consprac
5 d seth ad aly icldes a claim under ICO for x B n s. This
he frstie tat rusee has een amed as a con raor, and h as een n ed i
27
28
10
TIE OF TIN A D M TIN R S CTI S; ECLAR TION
RIN A. LASSER

e 11-cv-O823- F-P ocu ent 30 ed 0411/2 age 16 Of 23 ge D 12
1 s ersoal capaci
2 1. L
3 ng a aint n eral rt s o ng ert . n att
si atre on a com aint antamount o a arra y tat e co ai elgrouned
n fact d (e g l (or ropses d fh exten n o e ex g l d t
d for an i rop an v 6 F 7 (9
r. 2). y gro prop
san on en elas ey w o si an es co aint. ee S dmore
5 F3d 4, (5th Cr. aff g sanc st
10 eroufact y g ess
1 1 G s e t er o ss an ctin en a arty as
12 dece ed he cort d egaed n co ct utterly i sistent h te orerl
13 n o n v s. 64 d 91, 8 (h Cr.
14 oti sch c. ral 69 F 8 (h C
5 ). A g of ful s, t, r d f ' s req d fr ssal o b
16 er.' l r s C eren ow rs,a di ct court ay aso aard san n t
17 form of a eys' fees ag nst a arty or sel ho acts n bad ai, at sl
18 or for ressi rea ' 1d. at 1 (ci g . ervs.
19 arse, 15 F3d 64 (9t r. 7).
0 8 . j 1927 rov es, ny at ey or er son adm ed o con
cases n any cort of he U ed ates . . . o so m ti s e ed s n any case
22 unreasonaby and v atously may be eq d by te court o satsfy ersonaly t
23
24 3 seth as, owever, de it a ha of eatg M
scher. ecara
of an A asse asser 1 (etter rom set5
(uto r. rsch t. atig t tend to fe ts a
ease e noce to ou surance carrers r. set ended cai agai ou
,,
28 11
OTIE F TIN A D M TION R S CTI S; ECLARATIN O
RIN . SSER

se 2:11-cv-8283- F-P ent 30 ed 04/1/12 ge 17 Of 23 age ID 13
cess ses, d atornes' fees aso y i red se f such codu
n aw d osan er 8 U j 1927 o e d ct urt ori
e w n a en ( sel as C ful seg al pro
4 se ed n in bad ' s e, 77 Fd 46, (9t
5 r. ) (quotaton ).
6 V. UMEN
7 . xseh as ed a v ri s erclai
8 ery aspect f set s nteraim s, n s face, rought n ad . rst
9 sets uner m s s ec se seth ed hs ounterclaim ag st
10 stee ersoaly w en the T stee erso y s ot e ff n ts ater. r.
1 sc er as earedand w con o apear n any courtapproved ogo g cae,
12 n hs role as he Trustee f e T p ant to a court-aproved app t and
13 specific as ent f s er g lawsut' e has ot eaed n any dual
14 cap h C as ed at a) nter er e 13 m
15 agaist an g part' s a arty sued by a ee may assert a co ai
16 agaist e stee, ut ony f e tru e is an g part' n te mea g o
17 e ell-estab ed tat en a arty sus n hs represenate ap e
18 ot subject to n h al ' ln re A
19 8 3d 8 , 0 (h Cr. 7) s l; see so ort
rea 534 6 (186) ed by the s on i
1 o dfer t capcits are eray treated as e ransacti s of o dfer t
2 p son es.
3 eo , e derp s f se s aleg ons agait e rutee are ot
24 arra ed by existg law, r a good aih argu ent for an exension, od caton or
5 ersal of e sam . n top f s groudless ecsin to sue te tee ersonal
26 seth otaly i ored e sem al g of e arn Doc e. s raen
27 seek g at n D ars) n da es nst
8 ee son y as ed st ee s er hs si ar conspracy-based s2
TICE F TIN A D M TIN FOR S TI S; ECLARATION
BR N . LASSER

se 2:11-cv-8283-G F-P ocu nt 30 Fied 04/1/12 Page 18 Of 23 age D 14
agaist oter krupcy- reled o d ap e dismssed in a seth v
2 row , et ,
, 12 L 1598, t on. 5, 12
oreover, re- g o ou erclai afer e i al fing as smssed on
echn aly - av xseth nu ou ore o retect on t on D e.
5 s art f s unerclai, eth ri sly rought a cil ICO cospiracy
nt, ch e t gaon e alenof ea ach v ross,
3-096 , 04 WL 2 6, t *4 June 1 . e despi
8 atany ai g to eet asic ea g req remens, ch as ropery al g ea
9 el t f e ICO coun claim d satiyig e eighened requ s of
10 ). ead seth a es i y tat e al y su red n 2 g b e M
1 rschner eca a Trusee n 20 . of e Counerclai ot e o mere
12 ea g deficienci , ho er; even a cursory i esti on of hat cts
13 em strate at ere o basifor e ai gien te el of e cl ersu
14 l cts n s
5 seth did t ege y facts o est sh at e e er enered o
16 reem t h any er ed co nsp or o ach e y un ful jecte i
17 geer, or o part e in any O en rprise n partcu ' ch are key R
18 s. erclm at 1, 137, 8, a) & 143. er, seth ake
sory tem ts at e T stee is essenally a û n'' or a ' es9
20 descri ar e exact op sie of re red Sagreemen for pu ses. ased
1 on te alegatons n te ounterclai, the T stee ery com uncated w h
22 aw ers, fied s r e st's c grant f ori, ding e
23 gran d au ory to ce s ga , and est ed at al and in d s
24 none o ch iactonabe, a1 ch i act codu cum ent on t ee as
5 a idu ar. seth does ot ege a si e fact nv ng y co er on
26 com , eet , or acton by w h te ustee coud h e eared ab t any
27 agree nt eteen Cedt Su e, an & ef , or oss r o efau
8 set. seth f s to ege any facts eces ry to ng a RICO cl . at ,
13
TIE F TIN A D M TIN FOR SANCTI ; ECLA ATIN O
RIN A. LA SER

e 11-cv-O8283 F-P ocu ent 30 d 11/12 age 9 of 23 ge D 15
seth brou t O clai o harass d i date ee persoal an
co em di y tactics at ti onas em ed a
3 ccordi , seh and s cousel sho d e ctned or orcig r.
rschneto efend ag st ese ally f olou clai rel
B xseth's unel Sh be ctned er 28 S.. j 1927.
6 A section 197 sancon requres ene f ad fai, roper ot e, or
eckess diegard uty owed to t court' Edwrds eneral ors or , 153
d 22, 6 (9th r. 8) on of a sut n to eriess'
satisfis n 19 . S ' g atin an ed
10 ss. . cago l (7th C
1 1
12 A party em st es ad faih by delay g or tig e aton
,
961
14 h Cr. (qu on o ). Cad f h i resent en an atorne y or
15 ec ssy raises a friolous en, or es a mer s aim for e ur se
,
17 h Cr. see so e, 7 F 5, h Cr.
18 eed not ake expess nd gs s o co sels stae of d because ecord cont ed
ent dence to suport ecionl h A s. 83 F d 56
1 (d Cr. ) ( e f g orep e and f us sus co utes e of
1 se for ch an n for ng furter n may be an approp
2 san
3 xseth d s ou el flaganty gnred a own and clear nth rcui
24 receden he Bartn D ctrie, by fi g te i t ountercl g leav
5 of e an ptcy Court, de e av g extra e o retlect due to a f re o co
h e Lca s and re-f . T e cost es fien dece of ad fai
as escred by te N h C n L 64 d a tes ad f h by
8 g or d g e n or g forcem t f a rt order 4
TIE F TION D OTIN FOR S CTI ; ECLA TIN O
BR N A. LASSER

.
1 o arrant san on
2 seth and s atorneys ave cted co racy ory er cospracy
3 ory, efu d o accept dins st
,
es, aw s, d law
4 f co g agaist , and ed p ce s by g reet e aw
rou e cou y wast al esources. seth and h
.
7 . eth s o el eate Is es at ave eav een ecied
8 s eferenced, an award of sanctons der 8
.
7 o e d ct
y ae w n a ers en d el as i ull)
10 al rocesses se ed l n in bad fa e,
5, h Cr. (qu n om
2 In s terclai, seth s n ad h r g to rel ate ssues at
13 e already been ed aga st
,
demon g both n e of cess d ba
14 . or nstan , seth and hs sel tn y ad fal y al e tat ed
.
17 redt Susse and rosslaror
. .
bers of he Y T Adviory Boad, om hich
1 8
cler akes ectn and for om e a s on b alof
9
rscher, at all es rel , at n hs capci
rustee for e Y and is ieg e co s effort0
ainst r. set, at e is actig as the tool of an
2 1 com ee over acts or redt sse and rossar r
nt and ecute eir ongo g enteprie agai2
. et
23
. ln si ar d f rag asser at r.
5 s d has n f y aare at e is g u d by redt e) o
6 e contied eff s o ect e redt sseq ' d ads at

seth
8 ecause r. rsc er tans o earn a ery enerous contingency fee for am nts at
15
NOTICE OF OTION ND OTON FOR ANCT DECLAM ON OF
BR LA ER

se 1-cv-08283 F-P cum nt 0 d 04/11/2 ge 21 Of 23 age ID #:17
1 ect ehal redi ' Cou erclm at 3 & 103 n
2 ln , as seth s aware and e anrupcy rt already fou
3 e ts
e larest credor in s case has been
redit Susse and e reettion L ers. T s ony a
successr of e ebtors. seh has sho n no evdence t
5 est any ong do g y e ebtor
. ar, T
6 ot a ccessor n t to dra and e rt, o dae, as ot
agreed h B sets grand consp cy teory regard g Brne
7 d dr
hu, e Cout s not con ced that T has
g clean s n s atter. . . . e rt s t
at edit sse conrols . Te Court also agrees
9 T t o ass ex s er upn ch ny
10 condut t y ave een aged n by t
hou be iputed upon Y
1 1
12 n r elowton ounain C , 6 . at 74 . esp s se
13 es o at k t stee erson and cl at awn o red ss
.
15 ercl at 15 ( asi ori ). In f cy C rt s
16 rl e C rt ot ers ed b sets atempts sel cti
17 ese ceed s, art arly w ere seth was at ener he eb r's ancial
18 oes.' n re ow e ounain C 15 B at 79
19 seh also spens ages aleg g acts at edate any nv ement f
,
1 redt sse t ton d sed a g an . . . ' C m at .
unercl co ais o factal al atns at ort on o ct eged
occurrg in 2003 o te rustee, ony appoied in 2009
4 ese and oter em s o rel ate ssues already ec d agaist m war
5 sactons agaist
6 /
7 /
8 /
16
TICE OF TIN A D M TIN FOR SAN TION ; ECLAR TIN O
RIN A. LASSER

se 1-cv- 283 F-P cum nt 0 d 04 1/12 age 22 Of 23 age D 18
1 .
2 ased n e oregoing, d e ar s set orth n e stees oton to
3 ss sets m for 0 (Sx n D ,
otin for graned i 2) y san
at st n te a ou attoreys' ee d cst n c ctn w h prearig and f
e n to D ss and t oton for cton oud be i osed agai
d h cousel(3) cousel for e T ee s o week o su ee and c
8 peti
,
2 elow e b datg
13 BAILEY & GLASSER
17
ow one C b qu g T
1 dm d o ac
22
23
24
25
26
27
28
N . LA ER

se 2: 08283- P ocum t 30 ed 04/11/12 age 23 Of 23 age D #:619
1 TI E F
3
4 t l am a cizen of e ed ates and m a esident or oyed n
oun , alom ; at y busiess address s 3 ale ecer, e 50, an
5 em
,
al a 92 ; at I am over e age o 18 and not a arty to te above-
6 d cti
7 hat I am em oyed y a ber f e ed es t out or e ental
or a and e di on 1 cased serce of:
AND ON R ANCTION ' ND M OF POITS AN
TH TIS N PPORT T EREO ; CLA TIN F N A. ER
on e ieresed artes as f s:
10
IC by electonicaly f g he forego g w h e Cerk of
1 strict t g i Sy em t o t ectro ase g p on
ed es urt er der and t er 02 ch2
y n s said part n ths ca
13 er
e f g i rue and c rect
1 6
s certficate was exec ed on 1, at an e, a. 7
1 8 een rogan/s/
19
20
21
22
23
24
25
26
27
28
18
TICE F N D M TION R S TION ; ECLA TION O
RIN . SSE

ase 11-v-O8283 F-P ocu nt 0-1 ed 4/11/12 age 1 Of 2 age ID 20
en ay n ( ar
n Cem e al a 26
9)
14 f e elow e ub Lqudatg
5 N E TED TATES TR T
FOR T E CENTR L D TR T OF FORN6
7 C S. CH E O
.
S TR ST E e o. v-11 8283 F SPx
OF THE YELLOW TONE CL B ECLARATIN F N
.8 LI TIG , ssEt N SIPPO T F LT
9 TICE F TI N AN
Plnt , x FoR sA
and R ue for Ju cial otice fi
2 dan. curr y
.
8 ou erclm ef .

se 11-cv-8283- P ocu ent 301 Fid 04/11/12 ge 2 Of 2 age D /62
I
.
n tff a n u n c I efè t N S . K l lste
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-
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21
22
23
24 .
25
26
27
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ase 2:1-cv-O8283 F-P ocu ent 0-2 ed 04/11/12 age 1 Of 12 age ID 22
EX H IB IT

e 11- 8283 P t 30-2 Fid 04 2 age 2 of 12 age D 623
? N & AIIA
H, FLO A 33139
CARDIFF, CALIFORNIA 92007
rusee o e Y ne C b Lqui g Tust
st
ear chnr:
ve er 1220 1 er o my c t, hy xset
,
). are clearly aware at r. represened by co selo n
cate directl h my clent agai
rning to the su ce o er, as est y kn es tat
,
2008,
o the A o t al greem and the A um on eem
gned by cancel on of es as ot nly a ved by B and eplaced b
es e cd by E xset the canc on of es was a roved by t forni
erior rt n an O er dated Ju 3, 8, ed i al ed O obe
3. In ad n, as u are so aware sice ne C b L ng ' st as
if ary Proceedng 9-0014, he b cy urt ed at case at he
ecei by M seth trough t pro sory notes n w ch yo ow see o persecute M
seth, ere distr o B d M set' Y erefore h o lal
factual asis and you ha o god fai s f senng y d l er o my cl
.
er ad Resp den er o a ass
reem y w ch P er s ee o assume alof t
debedn and save and hold R onent com et

se 1l-cv-O8283-G P ocu nt 0-2 ed 04/11/12 age 3 of 12 Pae D 24
ar ner
eptember 0, 20 1
1 afer e s k o s transfeed er.
. Peti er sha ecu ne o ore es rresenng t
ebt ch sha kno ge tat e has
ass ed te B ndeb ss d furtr acknowedge that
she is uted a e soe o ect o such n
or ûtes. all orm y aprove te sai ution o
igor afer te st of B s tranerred eti er,
eti er, as the sae s older sha cause
on for e assu on of l y b er ad In
rec on o future nnanagement d corol d the
assets and es over ch It s the ht p an
ent release espoden rom any and a1
atis or es associated he ess.
as you are so aw e, pressly r sed any cl agaist r. set
n the M al er d R se greement he Skeleases). y, as a
arty t e Releases d a ory. ln the Releases, (JI
reby fully an sol y re es ad disch hy d each of t
y Enties (coect e ' y Released Part om y caim
d t y such dra E y has, or ay have agnst y o
eased Partes ased on con rom ng o nti
,
event or do ent
..
eleases, (
naly, ecuted an sum on A eem at both expesslcanceled t
d r sed Mr, xseth from any c ased upon set orth in t
t, ereby ases esp rom y and s, ns
,
elerig te o al esp es to eti er o be marked ' rceded
epacem ote'
e pr sions ( he M e va us am ents and the W vers and eases
e spe y a ed by thc rnia S rt after an ntiary h ng on Ju
3, 2008 and tat app al as erged into a f'na ent on O er 200. Tose
are terefore boh resj a and coateral estopel on yu, as he assi igh
ack tere he otes.

ase 11cv-O8283- P cument 30-2 ed 04/1112 age 4 of 12 age D 25
arc S ner
r v. et
. he alornia al ode nd s S aim Fvoous.
s you also k e letter u sen y c laly aached ent
tes no er n o y assu at enti y used c es o es t
o h e been can ed n a bad h a pt o harass d i e m
In fa
can e from the em d h o as E t 1 e exact es at u sen o my c
en mard supereded
he noes e go rned by C orn al e j 36 (a) es'
son ed ce an h or ration
disarge the o on a party to pay the, nstr (1 by an
,
ati can e i tllati or stking out o
,
(2) by agreeing ot o sue or o se r ng s aganst e party by a
ed w
sho n b e fal on o es a ache hereto, d unke the N es tat
hed r ler t e N es h early b ed a
cancelled a rov d for n ssection
), n ad urs o t ssum greem
txecued by B l expressy released Mr. setrom y re nsi y f repaym
the es. To t at do not e tat he N es are ed u bsec
), ey are also cearly c celed rsuano su ecton 2) by he ten Assupti
gre ern B ees ot ue Mr. xseth and clearly reounces any s agai
r,B et
ore er, s setted aw at y the er of the oigial es can brig an a n o
, Yu are clearl en a ' of he N es) as er es u cl o possess
are not he can ginal es. Terefe, r Ier see g coll on on ese cnce
es i any lega und on w soev

See e a C ercal j 36
he Jud 4 Bal ur ported C
n a as ou so know e you e the f i e bankuptcy co
ready rued n fn re c/l 7c C cf al, rsary Proc e m
eceved by M xseth ffom ne Cub h B ere not promssory n es
y
e î ' In i st 10 oran eci ankrup
urt d - as argued by you - at e cë at es w
ut a s se set ibu P 14 M ra of 77. T
krupcy court epe y c sed the noes om o Y stone Cub and rom
xseth to as g m e t ay of disgu g te al ed di ls.

ase 11-cv-8283 F-P ocu ent 30-2 d 4/11/2 ge 5 Of 12 age D 26
arc pner
age 4 o
,
ou con ding ha
y t nlent n A et kno y, so tat can
ct rt at s no on 4 is not a G nlen
.
e Uni om cial e defenses, youknow ge tat be N es e been
anceled, he b krup ng in A 4 tat ney en by M
xseth w
a d n raer an a ln n ates y a s a ' er'ursuan
assîgnm t. oreover, kruptcy court d tat e Notes merely refected m ey t
dra xse ed to h d t re d to even be led on he rupt
sche ce you k at s are at st
,

st, are falsely rep g tat
e bo e cl st r. h baed on the N es that d go o pay the gener
secued credors, cn yu know at rue
, by g on b
.
y fa g to dsclose
ur act bject he estate o not an aard oattorn fees, a1l s, ert

h caused by you
.
. çe f er Juri p d enue
se e advised tha r. ced an actin agnst E dra B seh in t
versdc Cou y Speri ourt on Sept er
,
0 l e N 1C 1 1 7, g t
e Notes d her re to c y w h the he es as set h in t: A
eementln add as you know he ba cy court g i salProceedi
he b krupcy curt e s terjuri on er y fr ion
hat ou m ht com ence against xset
. us, se be advised that art rolany
,
r. xseth w
ek hs co d aorn es om ou for any a o k y fi
.
,
y Resp ble es.
,
r.
al d ri s. H er, e tat e i cient o show at ur cl
s f olous, oth ally ad fa all ati
,
d m e in objectve bad faih. A
s, propsed l suit as dy ca ed n B seth em ress has
orced him o s ican al fees n c ecton w h y aseess threat
.He

e 11-cv-O8283- P ocu ent 30-2 Fid 04/1/12 age 6 of 12 ge D 62
ar
er
e 5 of
ates tat ay lawsui age s reutaton d interere wh hs ex g busiess
dea as er, ed treaaganst
xseh on a cearly ffolo
act y unfo ed clai ears to be p an g pattern o s l
nstigated by you aingt r. xseh, din rsc er v
. b, ro.
,
-00 8. A
he Monan ent of evnu as od ed
s to M xseth in conectin wh ifaied at pt o p o an
y bank cy and tose documentreveayou ve en ura d sub
ass ce to M ng an i ry uptcy p n ag st
h in b
ait' Ts pattern of vatis l n serately subjects ou o sanc s pu o 2
192
gh bh t es nd te A on eem ave rovisin for an award of
orneys fs, thst ng at rov on for a ard o s fs)
seth i
rea g y er as an e treat o fia f actin ag st ased on t
es. d you f ow hroug on y threat
,
e w at e the ca
red to a rt h p er e and ju d fie a M n for S
o R e 1 28 7 and urt' rensan ng p st
y l rs e te acti rop
,
rusee aw
e su ess ssal e ac e w en y resp artes
rosecuon o re er ful re age ve and bey d t orney
es tlat e w rec
efore, e ts act se gve ce t urance c ers
r,Bixs s inte ed cl st
,
of yo s and ad th
rself accordi
n T er a e

e 11-v-8283- P ocum nt 302 ed 0411/12 age 7 of 12 age D 28
xh t

ase 11-cv-08283 P ocu nt 302 Fid 04/11/2 age 8 Of 12 ge D 29
ane: Manns
t: ednesday? Septem 03 08 12:
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e 11-cv-0823-G F-P ocu ent 30-2 ed 04/11/12 age 9 of 12 age D 630
te )1- 1:1
PR RY NOT
ses to pay tthe o er û X ,
.
ira at e a s N ote frtn lzlc
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ase 11-cv-08283- F-SP ocu ent 302 Fid 04/11/12 age 10 of 12 age D 31
sy aris () r t lprc rigts l
,
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ry in s d m i y tlle c r on ay a
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t -

ase 11cv-08283- P cum nt 302 Fied 04/1112 age 11 of 12 ge D 63
PROM Y NOTE
2006
t 7 a R
) t
y ' e tlnzd , i n
,
-
e de o e u
e set h , l 1 y a - rest for h u r ntl
e t n o ë s d o e b s of a 35 or 36' ay y r and t
al s i
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7irst B ), ed Ai
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,
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.
ay e t. ay a repay ati er ote n full art
I e or fro
alt t ere or se,o pay
e cll ere
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e ev y s q t t de
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rït 1-
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ase 11-cv-082 3- F-P ocu ent 0-2 d 4/1/12 ge 12 of 12 ge D 63
tto y F s. l1 g of re
ly p tcy ) i s i sti
rsy a s ag o - s h
r i
aralals, acc
rts' s, d it1 fbess tsa s actu seid a n ab
ary ) co n th s dc d b e ( 1. n a
tl s p ide
eo
ry prson o alpy ti e 1 c f le p
sg e d h y Av s p t f
n (1 a
y su n o s t
. O )f p eref Or o r l tion s o
c rc e of a y prt e s

c p he in ss ev e a 3c t
st of a
y such extension or relsc l
-
12 () )t
e ,
.
3M IIR

ase 11cv-8283 F-P cu nt 0-3 Fied 041112 ge 1 Of 3 age D 34
1
2
3
4
5
6
7
9 CENTM L TRIT F CALI
10
OF E LOW ONE C2
LI TIG TRU T, PR J R TI
3 OT N FOR ANCT NS
4
9 ge: on
23 uneraim efendant
24
25
26
27
28

ase 11-cv-O8283 F-P ocu ent 303 d 0411/12 age 2 of 3 ge D 635
1 e on r s s ) ed by ff d erc
efen c S rscher rsc er'), as co -ap d T ee ( fruee'
he Y b L datg T came on or earg in Curtom
4 of his urt n y 2
,
5 he ee d ppeared on alf f othy
. seth,
.
,
8 e re ecrd erei
,
,
10 1
an ns sh sed ag setan atorf s of reco
12 am nt e atorneys' fees and co rutee cured in connection w h fi
.
14 . e ee as een (14) s rom te e f s er o sub t
.
poEb RDER GRATIG M ox CTION

se 11-cv-0823- P ocu ent 30-3 ed 0411/12 ge 3 of 3 age D 63
1 espectfuly sub ed
hareson, V 530 0
,
16
17
POED) RDER GR TI R S CTION

C

RE:
eter and M orandum atd M 4. 20 gu ng I gaton o
a P cal an al ona on
ppointent ndependnt
ounel. ng Suboena for ecords al ask ce C eer
Invest cen
.
seth by S e ad F al gencies. cl nR te I d the
ser on o and es ng o M
.
ea h:
se etter ad te do ed h o to be a s ental request
o t eter and M orandum ded to you ely one year go
.
h the broad scale re ns of rget ' y te S w suported by the
ector erathe P c I y S atin io M a po
al ecif y inv g te fargeti r. ixsh by ste an
federal agecies, cluding the I
,
by law
e pr usl evience, d te f g facts in te co of a rono
suported by the cum ary evi ce atlaced h
,
es tat he P
lntegriy Secton demandsub ena and equest rom e lS ad al epa ent hi
,
c ln ty Sect

e D art t f ce, d al t e and feeral gen s, l s
relati o te targeti of r. seth by t older reuer ntroll
art of ce and y te I h Mr. er res ed ruarya 20
as e head of te C d has no tumed o the aw 3 C on
g, ch as rresented sse throu eri ed
ese ers, his s msco ct relatig to te issues olved herein has
eded by he D J.
tal er so seek y for er ed i
5 her . To date, tt ey Genral and r. euer ave blocked i y i
order to co eal t cipaton n t rs recited herei d rected in t ay 4
2 L er and Memorandum
CHRONOL GICAL TATE ENT ACTS
er red ed 75 on to he Y one C
as p4 of an S uity Recatal n sch e to volat
and U P h was arof a larger, auduent sch e i ng at eas
een aster ed com nites. he sch e i f is a vatie of
securitized ort e btndlig sch es then ravagng te U eco y most
cated on fr t prai s t rect ectins b een t
securizing banks and te apprai s; ut e C t sse loans i ve drect
on b d be een redi sse and s direc com ssied apraser
shman & efi , o infle apraisals on te sxteen master
s n vi on of A . t sse ed
rcum A by issuig t hrough i an ands ranch
t art of e sch e f ed because e lan d the ans
asabe by feeray regu ed banks. See gen ay 4 12 L er
um ed her ed).
e Credt sse eated YC n s y auhorized Y o l
9 m ion e $375 m on an proceeds to er seth Grou nc.
ut rec rse'o Mr. seth, he o er of I. or xt hree
ars, l , 8, 1 d oer 0 m on n interest o Y
to dy au orid nes, arterly K ed f al ent
and adh ence to all corporae protcols. e YC oan and te B oan w
ved by the Y awyers
n March 3, 8, r. xseth c ed a to year rce battle h E
seth p o a comprehe e S al greem
dra receed he 500 onl; d Porcupne Cree 00 on)
er assets($ 0 m n + n appraised a s. Ulkn n to T dra had
rau d anks and l rs of t 50 m on g the d ce w
nsp g w h S el ne / ss or api sal
dra gave fa ed epa ent of e ' get to B ne to gi
o hs i ors to e sale; d tn she ç 35 on rom
uesor I n o ank cy C and C y D art cez
c l ty

h his edg t she had d ded $50 m n from he banks.
ed bark frd evidence and B e l documents in te My 4
oran ee fabricated rar ettersattached hereto a as Ehib
hst g t ed fony v y Edra B seth i g t
on of te D J Sarget etters' he sale a art of her
yrnes sche e o use e a krupcy C rt o ef y ç
s f s of s h e ç l ' d rs''
onana veror S zer reinafter recied, eueand er rt
,
sury d 1 ents; d tn used t S ad t J to arget'
xseth on b f of er's b re d, on urk
In July - ber, st ore ad aher e di ce cl n t
r. , as t f er eal h Byrne, e ed w h R
urk pa C al rolg a biln dollars of fola C S a
ension n theicheme to puhe Y o b cy pursant
o t r tril n d ar'' y to use ù tica ssu
vo g num s eetngs and large donatns o Schw zer
ra sated i
B ) d BS (Schw zer) ve ent s ical
tal olcal favor o en re they get e riht co ro
e M a b ptcy ge.' ( 2, ached here
ch e e ed B e, e ad Schw zer o use Judge Krch
e's ect o Lanny Beue or fol ng pu oses:
(a) to target r. seth wth te Cred sse loan ding tat
rec rse
) e Edra's vorce ob s o Mr. xseth uer e SA
(approx $2
(c) se e Holder reuer ntred J to co dra fake 'arget etters'
d bank fr s' nate a Fed sk ce ivest n i r sche e;
arget' r. seth w ed d c al clai y state d fera
es, g te I , he Breuer ed C l
,
d t
ontaa D ent eve e. s caal of prvate a s ad p c o ial
acco shed a1 f te ab e un r te prectn of Holr, reuer and Krs
e hacking io Mr. sets and s l rs' orney cl t
s, on ch t der ed v s of ng a
requestg i y for e hacker n order o expse he m ct of
.
h 25 b ee E o tBnne em re Sbri
on d l; 4 (Jan 09 eetig b n Burkle, yrn
chw l; hib 5 ( e 'olical pressure' aill' ee exh rev
,
ic lntegri ecti

ed w h at ed M y 4, 0 2 L r and Mem andum e B
p h B er eby rkle d m f s o co
,
n b f of t
s ng the i t ceed gs to spy on and il y coect
al d evdence against on en en B er as W e H e coun
d dea g dectly wh Pellcan. T urk on o B ne so enab
e to o n $ 100 on m he C fornia pension funds, and m
recentl yrne m e a ca al calo C fornia for T23 m
,
chweizer t onr che or the Y banruptcy befor scher
See
e admssi concem eetng w h er n t ny atached t
ay 4, 20 12 du and e bi chw zer as up for re ect
n 2008 wen B e ad Edra anged te $35 m on B e ln in Augu
,
th cy he chronolgy o en s tell
a) een y 1 2008 (four days afer Edra anno ced to Y
rs n Juy 6, 8 se ws takig over he YC out of
ce), d Sept er 3, 8, e, e d Schw zer
funn d throu he D c G lor's A n,
zer s hen C an) o the M a ocrc Pm
245 0 by avig B e and Burkle and t frends and ron
n the e, onatsad sum o the . Th A n gave
he m ney to the M a ocrac P y w o ued it n t
eel on c ee document separe cov
g t e and Byrn es
.
''
b) On A ust 1 8, dra ad B e agreed on te $35 m on an t
n control of he Y See s o te My 4,
nd
c) The next on A ust 8, yrne and dra et h Sc zer
at he C disss their tkeoer of the Y . t 6 atach
hereto.
d) e nex ay, on August eceied $750,0 f
.
al ransact e done in te co e Burkl yrne
sche an $35 on dra o sece control and
en to put t o bankruptcy to ensure the get e righ
come from the ontana banrupy j or 750,
sacton see docum sep e cov
y l g schem - h ng e / nd t ends don
,
c Inegr ion

igned t eal urke d Byrnes al rel nshp wh S zer
hie at t same tne Brkl d Byle were takig over he Y d ung
d S favrs' tzer o i
e i al se e s e was o m e po o crup
cy jud al process and ' he Y a co n mechanism
ed by B ne and ure - by e in b kn cy proceedingand by Bure t
btain ntrl er c ft s, e A e y Ycai ' and rate
publications.
er reelect n 2 9, er ed two slh t ds om urk
/ e m , he C l r a S e A ca' d Te
abity Pr ed oer 0 of t urke / yrne m ey t
he slsh fun n S oject, c) (4) organzat
as ckly app ved by te S w t naton n and g over
es i he e of te m ey d ispec c transfers. uring e same t
eri in 9, er ed a seres gs y g ng yrne
d B e over 00 M xseth m y as or
an $ 10 ld he as recied be gan a campaign o tget
r. set. r cum on o e ssh f ds, e documents nt der
separate cover er. e cluo y of cy co on s recied and
do ed in de n te May 4, 0 2 M orandu and s up emented as
ow
,
yrne)
and urke pu e YC o b cy before cher' d h d K scher
t fri ' y Patt, ho ued hs relaion p to gn access t
er bere krucy as o bef scher on e f
l hibs o Moton o Dsqu y K er ached to May 4,
em du n Nov r 08, he dy afer e nk y peton w
ed by Patt yrne s an em to his s s g t ey needed t
start ssure' e tlt t r ( r i sess
an d bapp ved by schr. See eret
. e DP pln gave
,
d S tzer et o cal ors hem
:
and moy
eci y s co ectins w h sp c l rs d a spec c 1aw
ep entng w y m s of e YC o were seekig ovr $20 m on

14, of K che rul ored Brkle, yrne and Edra an
,
d te r s oother es inv ed in te M ana bankuptcy proceed
See 4, 2012 M ndum
n May l , , her aproved a t k r m ' ter son
engagig i egaex pm eetgs in a hoel yrne, n w h B
e obtaied te Y er ass for y less an $ n t
,
ic lntegrit ecti

e, rscher approved an y ilegal krupcy pan creatg a S
rus' roled b redi sse, se p y purpose as to t et
,
e, urke, e from o Mr. seth, o the Y for
he F A nd U P olons, ee ay 4, 2Ol 2 orndum
bits) ereby d g Mr. seth oa11 of his e process hts d jury
,
e d Ced
uisse, h n s to be hear d in tal rogation of the F eral es of
.
edi
sse h Ju e Kscher'approval n app ed M c Kschqer as rustee
of he L datg st to e , e nanal ectns een
r, e and s C fornia ht oli s to l
fora pension s m ey to p off he Y ft h Judge K er
,
59% hich iowned by Har oup c. he S al nl as ov
.
d oer $ 00 on ested wth B e, all as a res of toli ati
ee docu ts ate r. n Apri5,
fora schemed w
ner and the Montaa D ent of enue ( , o put
xseth ito an y b y n er o precde hs s
rsches ngs. e sch e ws det ed hen an aral eva
y j saw hrough dis scd te peton on venue groun
he N d. at sam judge i arig Mr.
ed motn to di ss S invo ntary n as l as
xsets clai or dam es against n June of 20
. eceny, n Marc
rschner' e i his enre cesspo on as sed
d he eier resi recor posion as t as a recor of
sanle t e, n Apri20 er esi d or was
as T stee e L ida g Trus
ln Ju 9, st er e er gs an t atis of
e process ri s, r. for y reqt an F reasury
d 1S Fd Task F ce i ti n othe re er o be co ed b
carer ag s ot er he c f a cr y an he
eue cratcaly co roled D
.See ay 24, 20 2 M orandum
d Ex s.
,
he lR ate
,
9, e te K er ru s o st 6, 0 rcfng o M h '
ed o #7e C sse c ed ng st nd o severa
fntprf/
sharehol s o see ay 4 12 ora d exh , t
S w com ed by e evience tcon de that 9 m on oan
as n fact a lan w o C to the ed tax
he I eci
ot t any cha es espect t 5 return was aly m
,
Int ty Seion

,
,
S J ary 4 O n catn of d l. er, at the b est
chqer ad te L uidating rust ng the IR
,
e conce
,
.
ee ay 4, 202 let and M orandum
and s. ee lm y Proffer of e whisebl er st r separat
relati ps w h s and t r cli s f ally b efi g from
egal rul n a unts ove
In early 20 he M a p al acl ry operated by zer er
ancal ce of Burke a e tn ed recy o r
er J to recty ' r. xseth h a ba ess cri
estgati raihe a f al career on
.
,
20 10 and
eparing s . ean e, e senor e wo was e of the
t of te S r / rkle p l nfl
,
.
See ay 4,
ora ng ay, 20 0, at e s e te Kscher s el
o the B P - e Montana em ats ere texig teir cle - Beuer
nte ne of app ed J a ys to oen a al estgaton
r. seth a y based on a t acton ng p y in the T
ch Mr. seth as selng o d e on f s l
defee. y coop ed w he now at eue
beh d ts wch hnt ad i daton cam m o make hm drop hs legal
enses i ana e i al a ç ormous polical
n the ov schem ecam so ov abl reuer en appeared in 20
on nat de T o t et forgn purchaser of s property for
urpose ng he Turk sale t pri g Mr. he f
d hiself, ln O r, 1, reuer en had t d pl
.

seth ofunds,
nvestgaton as a er' e of al es to t en an
r. set nti
. r 19, 20 edeal gra ns, ustoms and nforcement agen
drove om es ad ierceped T s pl at he aiort
orna w le r. seth was ng o dep

ed h es) d w ssi seared t e.
ere as o basis er for e search ad it as frui s; ut B
succeeded i erg hs message o
.
ee E 8,
s c nse er al e D J l er app nteby B er o co ct
s nal ves . o ooner ad M
. seth d to
,
grity Secti

on on O . 19y 10, n the 1S res ded h reop ed au
.
,
rscher,
fu1 ledge d part ation n te S eitzer urke / reuer cal
ors' see y Poff on Ag. 16, 10 issued s 135 page
orandum of D on' avor of the redi sscon
g T . s eci n was ed on K er' y e
ack room eal ch ed a, d encom