2000 - January 24th – Petition to Court in Santa Barbara
From Dewey and Todd to Judge Anderle Case No. 233136 transferred to Case No. 222675
Charges of conspiracy
2000 – July – Letter to Creditors sent because of nonpayment of support by Franklin.
2000 - August 4 – Tried to exercise 100 of my shares. Was told I could not do so.
2000 – December 20th – Deposition of CRAIG FRANKLIN , taken at 9:10 a. m., Wednesday, 20 December 2000, at 1430 Chapala Street, Santa Barbara, California, before Mark McClure, C.S.R. 12203, Certified Shorthand Reporter in and for the State of California.
Present: Todd Porter, counsel for Melinda Pillsbury-Foster, Jacqueline Misho, counsel for Craig Franklin.
From page 10 of the document:
“THE WITNESS: Let me read the title of it, please.
I am producing a document entitled “Green Hills Software., 1996, Employment Agreement Stock-Option Plan, and Stockholders Agreement.” There are 15 pages to the agreement, and three pages appended to it, one page of which is the stock-option exercise form, and two pages of which are entitled, “Certificate.”
BY MR. PORTER:
Q. What you produced – does it include a copy of your signature which you just provided to me and I will have marked as Respondent's 5?
(Respondent's Exhibit No. 5 was marked for identification, a copy which is attached hereto.)
THE WITNESS: There is no signature on the document that I produced.
BY MR. PORTER:
Q. Did you produce a copy of the document which contains your signature?
A. No, I did not.
Q. Am I going to get a copy of that today?
MS. MISHO: We don't have that document. If you read the trial transcripts and the depo transcripts you would know that we are not in possession of that document. We never have been.
MR. PORTER: Have you made any attempts to retrieve that document?
MS. MISHO: Do you mean as in a thorough search and enquiry with respect to all of the things in his possession and in the possession of his attorneys, accountant, employees and agents?
MR. PORTER: Including Green Hills Software, the company that he is the vice president of.
MS. MISHO: That's not his employee, his attorney, his agent or his accountant.
BY MR. PORTER:
Q. Mr. Franklin, did you keep a copy of the document which you signed? In other words, the page that you signed? Did you keep a copy of that?
MR. PORTER: The page of this 9 –when he signed the stock-option agreement in 1996, the one referred to in Mr. Speich's memorandum, I'm asking whether or not he kept a copy of what he signed.
THE WITNESS: By “a copy,” do you mean a Xerox copy?
BY MR. PORTER:
Q. Yes, a Xerox copy or a photocopy.
Q. Who did you hand that agreement to?
A. My best recollection is that I handed it to Dan O'Dowd.
Q. Do you recall when you handed it to Dan O'Dowd, approximately?
A. Not at this moment.
Q. What is your best memory of what was contained – strike that.
You drafted the amendment?
A. I did.
Q. Did you draft it on a home computer?
A. I drafted it on a computer at Green Hills Software.
Q. Okay. Do you have a copy of that amendment?
A. I have just testified the answer to that question.
Q. No, I don't think that you did. I think I asked you whether or not you had kept a photocopy of your signature page.
My question to you now is whether or not you have a copy of the amendment that you prepared?
A. I don't know.
(There follows a long and tiresome attempt to avoid producing the draft revision of the Stock-Option Agreement written by Craig Franklin. Eventually Franklin says,)
THE WITNESS: The Amendment, to the best of my recollection, dealt with the issue of how to arrive – excuse me – of describing a process, or a formula, for computing a number of stock options that I would eventually be allowed to exercise. And the – this is as I understand it –other employees were going to be subject to a formula that said take your annual salary –let's say $70,000 a year. All right, you get 70,000 shares. They vest over a period of time, according to certain rules and so on, and the option exercise price is a dollar.
I thought my long years of service to the company should be taken into account, so the amendment had one section or paragraph or sentence that used the same formulas as other people's – take my annual salary, and so on – and then it has another section which said that my previous years of service would be taken into account somehow.
I mean, I don't remember the exact wording, but my intention there was that – that they be taken into the – into account. This is in effect a proposal from me to Green Hills. That's pretty much all I remember.”
2001 – February 22nd – Transcript from Deposition of MORGAN PILLSBURY, taken Santa Barbara, CA by Consolidated Reporters Network. 50 pages. (excerpt from page 30 of document.)
“A Well, when we started talking again I told her everything. I told her about what Craig had done, how he lied to protect stock during the divorce, how he changed the stock options around. And I don't think she believed me, so I made a recording of it.
Q And the reason you made a recording of it is because your mother would not believe you because of lies you told in the past?
Q What lies had you told in the past?
A Too many to name.”
The law suit for (1)Battery, (2)Fraud (Active Concealment), (3) Conspiracy to commit Fraud, (4) Declaratory Relief, was filed in Santa Barbara by Todd A. Porter, SB # 48993 in
2001 – March 30th - Settlement Agreement signed between Pillsbury-Foster, Green Hills Software, Daniel O'Dowd, and Craig Franklin.
2003 - August 18th - 23 PM1:18:23 PM Pacific Daylight Time – Email from Todd Porter to Laura Dewey regarding falsification of income by Craig Franklin.