Exhibit 2 - October 6, 2003 - Morgan Declaration to the IRS alleging Criminal Fraud by Craig Franklin

Exhibit 2 - Morgan Declaration to the IRS alleging Criminal Fraud by Craig Franklin

DECLARATION TO THE IRS ON

CRIMINAL FRAUD BY CRAIG FRANKLIN

I declare the following to be a true and accurate recollection of the events cited and if called to testify in court would testify under penalty of perjury to the following.

My name is Morgan F. Pillsbury, born Carolyn Anne Barteaux but adopted legally by my grandparents, Dr. and Mrs. Arthur F. Pillsbury when I was around 12 years of age. My birth mother was their youngest daughter, Melinda Pillsbury-Foster, born Mary Linda Pillsbury.

I went back to live with my biological mother in 1987 and lived with her and was supported by her and her husband, Craig Franklin for ten years. Craig told us that we were his children and named us as his natural offspring for all legal purposes in his will. (See copy of will)

In late 1997 I agreed to slander my mother, retailing untrue stories about her, for my step father, Craig Franklin to her friends and business associates in return for his continuing to support me while I worked on a career in the film industry. For the next year he gave me around $5,000 a month and I kept my part of the bargain. This was a continuation of support I had been receiving for some time.

Craig said this was in lieu of a college education. He had always expressed a strong desire to support me in my movie career, and I accepted this as appropriate.

I did not consider the possible tax ramifications of my actions since kids get college money all the time. I now recognize now inappropriate my actions were in regard to my mother, who was substantially damaged by what I did.

In January of 1999 Craig asked me to come to Santa Barbara and made me visit his divorce attorney, Jacqueline Misho. In her office he forced me to sign a document stating that the money I had received was a loan. He told me that this only a pretense so he could evade taxes. He told me he would write it off as a bad loan.

I signed. I expected the monthly support to continue and was shocked to discover that he was no longer going to pay me. During the same visit to Misho’s office he tried to force me to sign a declaration saying he and I had never had sex. I was grossed out and disgusted. I refused to sign.

Later that month he tried to climb into bed with me. I moved to the east coast to avoid his attentions.

That summer I got back into touch with my mother and confronted the hideousness of what I had done. As partial restitution I recorded Craig talking about how he had defrauded her in their divorce settlement by falsifying stock option agreements in collusion with the president of the company for which he worked. My mother has this tape and a transcript and can produce it.

After I testified for my mother I declared bankruptcy to clear the bogus loan from Craig. Angry that I would not sleep with him and had testified for my mother he used the supposed loan to destroy my credit. He continues to pursue this matter today. Earlier this year, while discussing the facts with my mother, I realized the tax ramifications of having me sign the loan papers and am therefore reporting him for tax fraud. His social security number is XXX-XX-XXXX and he is employed as a vice president at Green Hills Software in Santa Barbara. He also has stock assets and a trust fund from Stanford.

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Signed, Morgan Pillsbury October 6, 2003