Tuesday, September 12, 2017

Exhibit 42 - Clive Boustred calls to find out the value of GHS stock.


Exhibit 34 - “Craig Franklin – Pillsbury-Foster Marriage License and Certificate, 1987,








Supplemental Declaration – Exhibits - IRS Crisis – 1997




I, Melinda Pillsbury Foster, am over the age of majority, and inhabit the Republic of California, Tulare county, am a party to this action, and do state, declare that this declaration is true, correct and complete and not meant to mislead.

1. Annexed here to and marked as Exhibit 1, is a true and exact copy, from others in my custody,  for January 29, 1997, “Letter to Shanie at West Coast Escrow,”  these facts are referenced herein as though set forth in full.

2. Annexed here to and marked as Exhibit 2, is a true and exact copy, from others in my custody,  for “February 3, 1997, Letter to Hilda,”  these facts are referenced herein as though set forth in full.

3. Annexed here to and marked as Exhibit 3, is a true and exact copy, from others in my custody,  for “February 3, 1997 – Letter to UC Lending, Ron Taylor,” these facts are referenced herein as though set forth in full.

4. Annexed here to and marked as Exhibit 4, is a true and exact copy, from others in my custody,  for “February 4, 1997, To:  Franchise Tax Board,”   begin fact finding with the IRS, these facts are referenced herein as though set forth in full.

5. Annexed here to and marked as Exhibit 5, is a true and exact copy, from others in my custody,  for “February 4, 1997 – Cover to Fax to Doug Thorburn,” have now begun compiling documents and records so Doug can begin making out tax returns, these facts are referenced herein as though set forth in full.

6. Annexed here to and marked as Exhibit 6, is a true and exact copy, from others in my custody,  for “February 6, 1997 – Request to World Savings for 1098s from  1988 - end of loan, nine years,” compiling information for accountant Thorburn, these facts are referenced herein as though set forth in full.

7. Annexed here to and marked as Exhibit 7, is a true and exact copy, from others in my custody,  for March 6, 1997  “Letter to Leticia Fernandez, FTB Lien” asking the lien placed by them the day after I got the lien removed by the IRS, also be removed, these facts are referenced herein as though set forth in full.
8. Annexed here to and marked as Exhibit 8, is a true and exact copy, from others in my custody,  for “March 10, 1997 – Letter to Leticia - State Franchise Tax Board, explaining difficulties and expenses,” these facts are referenced herein as though set forth in full.

9. Annexed here to and marked as Exhibit 9, is a true and exact copy, from others in my custody,  for “March 10, 1997 – Second Letter to Leticia  - State Franchise Tax Board, more difficulties and expenses,” these facts are referenced herein as though set forth in full.

10. Annexed here to and marked as Exhibit 10, is a true and exact copy, from others in my custody,  for “March 12, 1997 – Letter to Dr. Franklin regarding taxes, asking for help, he ignored me,”  these facts are referenced herein as though set forth in full.

11. Annexed here to and marked as Exhibit 11, is a true and exact copy, from others in my custody,  for “March 27, 1997 – Memo to Doug Thorburn, our accountant who is preparing returns providing more information,” these facts are referenced herein as though set forth in full.
.
12. Annexed here to and marked as Exhibit 12, is a true and exact copy, from others in my custody,  for “April 10, 1997 Fax: To Mr. Marshall Lassiter (Asking he remove Tax Levy),”    these facts are referenced herein as though set forth in full.

13. Annexed here to and marked as Exhibit 13, is a true and exact copy, from others in my custody,  for “April 23, 1997 – Letter to S. Larson, regarding non-renewal of credit card due to credit,”   these facts are referenced herein as though set forth in full.

14. Annexed here to and marked as Exhibit 14, is a true and exact copy, from others in my custody,  for “April 24, 1997 – Letter to Brown & Associates,” these facts are referenced herein as though set forth in full.

15. Annexed here to and marked as Exhibit 15, is a true and exact copy, from others in my custody,  for “May April 30, 1997 - Faxed Letter to Lassiter,” these facts are referenced herein as though set forth in full.

16. Annexed here to and marked as Exhibit 16, is a true and exact copy, from others in my custody,  for “May 1, 1997 – What we owed, produced at the request of the IRS,” compilation of bills caused by Craig's emotional disability,  these facts are referenced herein as though set forth in full.

17. Annexed here to and marked as Exhibit 17, is a true and exact copy, from others in my custody,  for “May 8, 1997 – Note to Sir or Madame at the IRS regarding $25,361.15 for taxes owning for the year 1985. (Started the note and then called them directly putting them in touch with Lassiter),”   these facts are referenced herein as though set forth in full.

18. Annexed here to and marked as Exhibit 18, is a true and exact copy, from others in my custody,  for “May 14, 1997 – Letter to the IRS on why I did not know what Craig was doing, explained deaths and natural disasters,”  these facts are referenced herein as though set forth in full.

19. Annexed here to and marked as Exhibit 19, is a true and exact copy, from others in my custody,  for “May – Date not specified, letter sent to the IRS informing them of Craig's emotional disability and application of the ADA,”   these facts are referenced herein as though set forth in full.

20. Annexed here to and marked as Exhibit 20, is a true and exact copy, from others in my custody,  for “June 23, 1997  To: G. L. Joly, regarding Craig's emotional disability.  January 29, 1997,”  these facts are referenced herein as though set forth in full.

21. Annexed here to and marked as Exhibit 21, is a true and exact copy, from others in my custody,  for “July 16, 1997 To: Fred Arras, Chief Joint Compliance Branch, Internal Revenue Service, more on Craig's emotional disabilities,”these facts are referenced herein as though set forth in full.

22. Annexed here to and marked as Exhibit 22, is a true and exact copy, from others in my custody,  for “Undated: Notes to Thorburn on Taxes, years from 1988 - January 29, 1997,”  these facts are referenced herein as though set forth in full.

23. Annexed here to and marked as Exhibit 23, is a true and exact copy, from others in my custody,  for “IRS Notes to Thorburn, years 1988 – 1997,”   these facts are referenced herein as though set forth in full.


Signed,                        Date:  September 5, 2009
 





_____________________________________
Melinda Pillsbury-Foster
Witnesses: 

_________________________________
              Print Name

 ________________________________
              Signature                               Date: 

Address:

_________________________________
              Print Name

 ________________________________
              Signature                               Date: 


Address: 

3 Exhibit 19 - IRS - May - Letter on Need to Protect the Disabled.



Dear Sir or Madame,


            In February I wrote a letter to you regarding my husband, Craig Franklin, who had not filed a tax return in 25 years.  I was not aware that Craig was not filing.  In fact, I believed that I had succeeded in bringing him up to date, and had initiated the preparation of tax returns for 83 - 87 and paid the bill to the accountant. 

            I wrote asking for help with a very painful  situation that has almost ruined us financially and come near to killing my husband.  All I received from you were demands for more money - that we don’t have and never owed. 

            Craig is now under the care of a psychologist who is helping him sort out the source of this deep-seated phobia regarding all paper work. - and all authority figures.   I have personally sorted through 29 cartons of papers dating from the late 60’s.  It was in the course of this excavation that I discovered the never-mailed tax returns at the bottom of carton 9 (Saturday night around 11:00 p.m.)   In the cartons were unopened letters from family members, traffic tickets, some over 20 years old, and an astonishing array of stuff that I will not bore you with.  I have no idea how it was possible for him to deceive me, his birth family, and others.  But he is extremely intelligent, his IQ is high enough to qualify him for Sigma, and so his therapist was not actually surprised at his ability to avoid confessing to his problem for so many years.

            As I said in my earlier letter,  Craig was diagnosed with adult on-set diabetes as well and this has necessitated many changes for him  - including my going into the office to organize his work.  Otherwise I still might not know. 

            But now I do know and I understand the emotional burden that Craig has carried all of these years.  He could not file.  He could not admit to his inability because of a condition that has existed since he was a young child.  But the most shocking  thing that I saw was that although he, because of his disability broke the law, he was not charged with non-filing.  Even though it must have been obvious to you, or someone in the IRS that not filing was costing him much, much more than simply hiring an accountant. 

            If you had charged him this condition would have been revealed years ago and he could have not been subjected to the stress and grinding fear that brought on him diabetes and almost forced him to suicide. 

                I was appalled.  I want several things. 

            First, I want to know what you are going to do to repair the damage you have done to this man, and second, I want  to know what you are going to do to prevent this from happening to others in similar situations. 

            it  goes without saying that we would pay no fines, penalties or interest.  I have been unable to find out exactly how much money has been levied over and above that which was lawfully owed, but every penny should be returned immediately. 

            I have no objection to paying what is rightfully due, but the shocking way in which this matter has been handled alarms me both for us and for others caught in similar situations. 

            The Americans with Disabilities Act guarantees that individuals such as my husband will not be treated like this.  He was incapable of filing paperwork - not or not paying what he owed. 

            I have been under treatment for a heart condition. (Both of my sisters died of heart attacks in early middle age, one at 36 the other at 59.)  My younger brother just had open heart surgery.  I want to know what you are going to do to stop this abuse of those who are emotionally disabled. 

            I hope to hear from you as soon as possible. 
           

Sincerely,


2003 - August 18th - 23 PM 1:18:23 PM Pacific Daylight Time – Email from Todd Porter to Laura Dewey regarding falsification of income by Craig Franklin.


From:  Todd Porter, California Bar No. 148993

To:       Laura Dewey, California Bar No. 108294

   

 Dear Laura:


The email follows our conversation regarding some ideas I've developed to flush out the great likelihood that Craig has hidden his money, committed a fraud on the court, and otherwise done everything in his power to thwart Melinda's right of support.

In handling the trial for Melinda, you obtained for her an interest in certain stock options, which were the security for a "nonrecourse" loan with GHS.  The terms of the deal are unimportant for this conversation, other that to say, I refer to these stock options as the OLD options.

Subsequent to the divorce, I was suing Craig and GHS.  I deposed both Mr. O'Dowd, and Craig.  What I learned is illuminating.

At the time of O'Dowd's deposition, he and Craig were negotiating a deal for additional stock options, which I will refer to as the NEW options.  This, in and of itself is a form of undisclosed income.  However, putting that issue aside, they had gotten as far as a range for these NEW options between 400,00 and 650,000.  [Note, I have sent to Melinda a copy of this deposition, I have a certified copy here in the office as well.]

I also learned from Mr. O'Dowd the following important things.  First, his compensation agreement has never been reduced to writing.  The way it works is that Craig first has to submit a "commission report" to Dan, which Dan then approved (or disapproves) and he is paid.  Two things are to be learned from this.  The first is what Melinda has told us for forever, is that Craig has control over when he receives his income, but virtue of the fact (there may in fact be other ways) that it is HE who must first submit the report to Dan to be paid.  Second, the terms of his compensation agreement can be discerned from the reports.  Third, I learned that there was a precedent for Craig to divert income to exercise the stock option.  This fact actually happened with respect to the OLD options, and Dan detailed that occurrence in his deposition.

So, Craig lowered Melinda's support, by making a claim (false) that his earning were down.  What I'd suspect that you will find, is that A.  A deal was in fact consummated for NEW stock options.  B.  Craig may have intentionally delayed submission of commission reports and/or C.  Craig had income applied towards the exercise of the stock options, which was not disclosed to the court.

This is in keeping with Craig's character, his course of conduct, his opportunity, and is consistent with his BIG year the next year.  Also, his claim of lower income is inconsistent with GHS financial results, which they publish on their web site, showing earnings growth in EVERY year.  See. www.ghs.com

So, my advice, would be to subpoena directly from GHS all of his stock options agreements, all evidence of any payment to exercise any options (OLD or NEW), all commission reports, and you will find, I'd bet, he's screwed Melinda, and committed a fraud of the court.  I'd seek the most severe sanctions possible, and make this a part of an effort to extend support.

Happy Hunting,




Todd”

Sunday, September 10, 2017

IRS Refunds begin

The first refund check was for $44,000.  In all, we received about $250,000.  Craig reneged on his promise to give me the money.  I had kept what I was doing with it as a surprise.  I paid all of our bills so all we had was the mortgage and car payment.  

What Craig did do was to ask the court to force me to pay the money back - to him.  I produced proof I had paid our overdue bills but he only scowled, visibly disappointed.  







Chronology by Check Register December 1997 - January 1998

Chronology by Check Register
Dec. 1997 - January 1998

723      12/28/97          Barbara Moore            110.00             Food in Hawaii

7239    12/28/97          Henry Venning           280.00             Kyaking for family
           
1998

7246    1/3/98              Anaith Phillips            $350.00           family massage, Melinda,                                                                                                                   Dawn & Ed

            1/3/98              ATM                           $300                cash, for food Hawaii

7242    1/1/98              Ayn Pillsbury              $100.00           reimbersed for cosmetics for                                                                                                  Melinda

7246    1/3/98              Anuth Phillips             $350.00           massage for Melinda and                                                                                                        family. 

7250    1/9/98              Chase Manhattan        $250.00           Household items and gifts

7251    1/7/98              Cox Cable                   $50.00             Utility for household

7252    1/7/98              Orthepedic Surgical               $27.50             Medical for Ed.
                                        Group

7254    1/7/98              Dr. Sandin                               $17.86             Ed, Medical

7255    1/7/98              Dr. Magneson                         $127.45           Ed, dental

7256    1/7/98              Pueblo Radiology                   $13.00             Ed medical
                                    Medical Group                       
                                   

7257    1/7/98              Pueblo Radiology                   $1,824.48        Ed, medical
                                    Medical  Group

7258    1/7/98              RMS                                        $220.00           gardener

7260    1/7/98              Editors & Publishers               $65.00             subscription,                                                                                                                            requested by Craig. 

7259    1/7/98              Orthepedic                              $181.49           Ed, Medical

7261    1/7/98              Wall  St. Journal                     $299.00           subscription,                                                                                                                            requested by Craig. 

7262    1/7/98              SUWS                                     $720                Justin, edcuational                                                                                                                  evaluation from                                                                                                                       December. 

7263    1/7/98              City of Santa Barbara             $240                Water and Power

7264    1/7/98              Dr. Jones                                 $340                Ed, Medical

7265    1/8/98              Cat & Bird Clinic                    $232                vet bill

7266    1/8/98              Vons                                        $80.00             groceries

7267    1/8/98              Citibank                                 $1,300             Craig’s credit card

7268    1/8/98              News Press                              $133.35           subscription

7269    1/8/98              Vons                                        $45.00             Groceries

7270    1/9/98              Dr. Marquart                           $140.00           therapy, Justin

7271    1/9/98              Party World                            $57.82             Ed’s birthday party                                                                                                                 (Craig attended)

7272    1/9/98              Trader Joe’s                            $20.28            Groceries

7273    1/9/98              AT&T cell phone                    $325.00           Melinda’s cell phone

7275    1/9/98              Roshannah                              $115.00           cleaning house

7276    1/9/98              Vons                                        $20.00             groceries

7277    1/9/98              Martinizing                             $38.38             Craig’s drycleaning                                                                                                                for Europe

7278    1/9/98              Anthethesia Association         $780.80           Ed, medical
                                    Med. Group

7280    1/9/98              Air Touch Cellular                  $101.63           old cell phone

7281    1/10/98            AT&T                                     $700                house phone bill

7283    1/11/98            American Express                   $16,070.00      Hawaiian Trip

7284    1/11/98            Ayn Pillsbury                          $400                Xmas present

7285    1/11/98            Wells Fargo                             $460.00          Credit card

7287    1/11/98            Northridge emergency            $80.80             Ed, service used                                                                                                                      December 1st. 

7286   1/11/98             S.B. Pulmonary Critical          $460.00           Ed, for service in                                             Care                                                                 November
                                   

7288    1/12/98            Ben Ray                                   $178.00          cabin repair for                                                                                                                      plumbing

7289    1/12/98            American Spectator                $54.95             subscription for Craig

7290    1/13/98            American Express Corporate  $2200                         for non-profits
                                    Card, ACP

7291    1/13/98            Dawn Pillsbury                       $2,000             School tuition, spring                                                                                                              term

7292    1/13/98            Susan Lundgren                      130.00             Yoga

7293    /14/98              Vons                                        $220                groceries

7294     1/14/98           Prudential Insurance               $939.00           Household insurance

7295   1/14/98             Robinson’s                              $62.00             towels, Justin

7298    1/15/98            Rndolph Mayted                     $50.00             Ed, household care

7300    1/16/98            Dr. Marquart                           $140.00           Justin therapy

7301     1/17/98           Cathedral Oaks Club               $1,135.00 -      Family membership,                                                                                                               tennis $300 extra for                                                                                                               Craig.

7302    1/17/98            Pac Bell                                   $101.00           cabin phone

7303    1/17/98            Gas Company                         $100.00           Anacapa

7304    1/17/98            Popular Science                      $17.94             for Ed, Xmas present

7305    1/18/98            Natural Wonders                     $76.45             Xmas gifts

7306    1/18/98            Dennesia Guerrero                  $90.00             house cleaner

7307    1/18/98            Mobile Oil                              $70.00             gasoline

7308    1/18/98            Citibank                                  $50.00             Melinda’s credit card

7309    1/19/98 -          GTE                                        $200                House phone

7310    1/19/98            Penney’s                                 $20.00             Household

7311    1/19/98            Honda                                     $150.00           Ayn’s car, graduation                                                                                                             gift from last May

7313    1/21/98            Susan Lundgren                      $130.00           Yoga

7314    1/21/98            Vons                                       $100.00           groceries, household. 

7315    1/21/98            Dr. Marquart                           $140.00           Justin’s therapy

7316    1/21/98            Long’s Drug Store                  $76.29             film development                                                                                                                   from Hawaii

7317    1/21/98            First USA                                $1,350.00        Hawaii trip

7318    1/22/98            Martinizing                             $35.72             Craig’s drycleaning                                                                                                                from Europe

7319    1/22/98            DAR                                        $36.00             Melinda, lunch

7320    1/22/98            Santa Barbara City College    $42.82             Ed’s books for school

7321    1/22/98            Dennesia Guerrero                  $95.00             house cleaning

7322     1/22/98           Vons                                       $90.00             Groceries to make                                                                                                                   Craig his special                                                                                                                     favorites.

7330    1/26/98            Americn Express                    $2,910.00        Hawaii trip




3. Exhibit 22a - IRS - Notes - Answers to Questions Raised by Doug, info on income, expenses

Answers to Questions Raised by Doug 
Regarding Tax-relevant materials



Tax-Free Bonds: 
These were given to Craig and his three siblings, $20,000 each from Craig’s parents, Dr. Carl and Mrs. Carolyn Franklin, $10,000 from each thus at the legal limit for gifts, three years running.  These years were 1987, 1988, and 1989.  Of course, the Franklins paid $20,000 for the bonds Craig received each year.  



City of Burbank
Bought for:  $20,000.00
Sold for:  $28,250.00

County of Riverside
Bought for:  $20,000.00
Sold for:  $35,788.00



Craig’s Business Expenses - MIT in 1988 - 1989

Craig did consulting work for MIT, creating a video data-base for the Agah Khan.  This work was done in these two years.  The first trip was in 1988 and the second in early 1989. These were his expenses:


1988
Airline Tickets:  $750.00
Hotel and meals - $500.00
Surface Transport:  $45.00
Telephone:  $150.00

1989
Airline Tickets:  $750.00
Hotel and meals - $550.00
Surface Transport:  $55.00
Telephone:  $130.00

International Meta Systems - Consulting compensation and compensation for serving on Board of Directors.  - Paid in stock - Never knew what it was worth until we sold it.  

1990

Phone costs:  $300.00
Milage for consulting:  7 trips - $210.00
Meals - $120.00
Attending Board Meetings  - $120.00  

1991

Phone costs:  $350.00
Milage for consulting:  4 trips - $120.00
Meals - $70.00
Attending Board Meetings  - $60.00

Cost of IMS Stock:  
Option price was $.10 a share
Paid:  $550.00

Charles Schwab Activity:


Tax-Free Bonds: 
These were given to Craig and his three siblings, $20,000 each from Craig’s parents, Dr. Carl and Mrs. Carolyn Franklin, $10,000 from each thus at the legal limit for gifts, three years running.  These years were 1988, 1989, and 1990.  Of course, the Franklins paid $20,000 for the bonds Craig received each year.  


December 93
City of Burbank
Bought for:  $20,000.00
Sold for:  $28,250.00

County of Riverside
Bought for:  $20,000.00
Sold for:  $35,788.00


April 1994 
- Bought 1000 shares Wind River - $6,000
Sold for $6,004.02
Profit of $4.02 minus commission 
Options: M Long LSYXH 50 PUT SPX Leaps .4375 - $2,187.50
$40 Expires 12/17/94   
           M Long OBXX 50 PUT OEX  100 Leap Index .3750 - $1,875.00 
$35 Expires 12/17/94
M Long XLTXE 150 PUT AMEX LT-20 INDEX .0625 $937.50
$25 Expires 12/17/94

Loses:  $4,998.00

California State Bonds
Bought for $20,000.00 - Tax free gift to Craig from parents
Sold for:  $25,063.00

1995

- Bought Options:

8/01 - Bought 7/31 9 PUT SPX LEAPS .3750 $373.70
$50 Expires 12/16/95
M Long SPXXT 100 PUT S & P 500 Index .4375 $4,375.00
$500 Expires 12/16/95
M Long LSXXJ 9 PUT SPX Leaps .o625 $56.25
$50 Expires 12/16/95
M Long LSZXJ 50 PUT SPX LEAPS .8125 $4,062.50
$50 Expires 12/21/96

Loses: $4,804.95

1996

Loses from Options:  $4,062.50




9547 Burnet Street - Costs and Improvements

1992

Repair of ruptured water line:    $230.00

1993
Getting House ready to sell before Earthquake - 
Painting - $3,450.00
Wallpaper - $450.00
Papering - $1,150.00

Cleaning up Garden and planting - $750.00
Repairs of screens - $340.00
Curtain material - $285.00
Sewing curtains  & drapes- $890.00

1994

Clean-up after Earthquake - $2,850.00
This was just hauling, cleaning and patching so Morgan could live there until we found a contractor)

Replacement of lost dishes, furniture, and sundries - $4,600.00


1995

Finally found a contractor

Diversified Construction - GrandTotal - $105,653.00

Painting (interior)   - $1,900.00
Painting - (exterior) -  $2,300.00
Wall paper - $650.00
Papering - $1,400.00
Garden Clean-up - $970.00
Hauling - $1,500.00

Material for curtains - $540.00
Sewing of Curtains and drapes - $1,120.00

Lost part of the house - a bathroom and one bedroom had to be eliminated in rebuilding.  This should be a reduction in the worth of the house.  Is it deductible?  


Promotion of Album:  The Sounds of Freedom

Craig wanted to sell tapes of his songs to pay for the production of a professionally produced tape he could sell commercially through regular outlets.  

First, we produced a video with a professional singer and back-up musicians.  We staged this at a home for the elderly so there would be an audience.  
Costs:  Film:  $23.00
Dresses for singer and back-ups:  $345.00
Singers fee:  $100
Programs for audience:  $45.00
Total:  $513.00
After producing the tape, Craig managed to get a contract to perform at a mike that would give him national coverage on CNN at the Libertarian National Convention.  

Costs:  
Singers fee:  $200
3 round trip plane fares to Chicago - $1,300.00
Hotel - $870.00
Meals - $430.00

Promotional Materials:  
Production and graphics:  $130.00
Printing:  $45.00
Total:  $2,975.00



Ron Weinstocks’s SS number:  - Am trying to contact him.