DM FBI Search # 71 | Gov Search Docs Unsealed D.nev._3-06-Cv-00263

8/20/2019 DM FBI Search # 71 | Gov Search Docs Unsealed D.nev._3-06-Cv-00263

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Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 1 of 28PR 09 2007 MON 03: 24 PM LSS CRS FAX NO 202 307 2066P

02

I

DANIEL G.

BOGDEN

UQited States Attorney

2

PAULL. PUGLIESE

Assistwit

United

States Attorney

3

100

W. Liberty Street,

Suitc.600

Reno,

Nevada 89501

4 Tel: (775) 784-5438

5 Attorneys for Plaintiff

. _

6 l.fNlTEO STATES

DISTRICT COURT

7

DISTRICT

OF NEVADA

8

IN THE

MATTER

OF THE

SEARCH

OF:

)

)

No.

3:06"CV·0263-BES-VPC

The Res.idence Located at

12720 )

Buck(home

Lane,

Reno,

Nevada, and

)

GOvER NMENT S COMPLIANCE

0

Storage Units

136,

140,

141, .142,

and 143, )

Double R. Storage, 888

Maestro

Drive, )

WITH COURT ORDER OF

l Reno,

Nevad.a

)

~ U U S T

17, 2006)

)

(SECOND SUBMISSION)

12

)

3

14 COMES

NOW, the United States

of

America;

by

and through DANIEL

0.

BOGDEN, United

5 · States Attorney, and PAULL. PUGLIESE,

~ s i s t a n t

United States Attorney, and complies

with the

.

.16 Court s order ofAugust 17,

2006.

17 During a hearing lll August 17, 2006,

the

Court

directed that

the

Goverruilenl

provide

to

the

18

Court all

reports

and infonnation that

Special

Agent

Michael

West relied upon in

support of

the

19 information contain"'1 in the search

wamint

affidavits.at issue in this matter. Upon receipt, the Court

20 would

c(lnduct

an In camera

review in order to·

determine

whether any of the infonnation is

rclcvi nt

21 to a deteimlnation OJ\

issues

cun"ently

oullltanding in this

matter.

22

\ \ \

23

\ \ \

24

I I\

5

\ \ \

26

\ \

I


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r t ... -

I

The Government

has attached pagCll

numbered

00001 -

00026 and

a

microcassctte containing

2 two separate monitored phone conversatioll8 between Special

Agent

Paul Haraldsen, Air

Force

3 Office

o

Special

Tnvestigatiot15,

and

Dennis Montgomery.

T h e . ~ e

conversations provided

the

4 substance

for infoimation in

Special Agent

Mike

West s affidavits

that

hes been

redacted and not

5. ·disclosed t\ counsel fur the

movants.

The Government opposes the rele11Se

o

any o he attached

6 documents

to

opposing counsel

at

this time.

S11ch

release

n

not appropriate as it

could

compromise

7 the

ongoing

investigation

o

alleged offenses involving

Mr.

Montgomery.

8

9

10

11

. 12

3

14

5

16

7

18

9

20

21

22

23

24

25

26

Dated: September 13,

2006

Respectfully submitted,

DANJEL

G.

BOGDEN

~ ~ ~ ~ 9 - ~

Assistant

United

Stat

ttomey

2


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Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 3 of 28PR 09 2007 MON 03:25 PM LSS/CRS FAX NO 202 307 2066

P. Haraldson

to

D. Montgomery 211612006

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

·

Hello?

Hey Dennis

-

Paul, how

are

y0u ?

1ve had better days.

(laugh) Yeah,

so

have

I.

How you doing /

·Well, T

mean ·With, ya know

it's

been very

frustrating

for

me

Paul.

I'm

going to tell you straight up is everybody s listening to one person -

Warren. And that's vezy unfair to me,

yo·u

know

w.hat

I mean?

Yeah.

I

mean

you've

been

around

me

as

long

as

you ve been around

Warren

you

know

what I mean?

I've been

around you more

I believe.

Okay;

I.know b.ut no

one T

have not

~ i d uword, I haven't bt:en going out

and just

did what Warren Trepp is

doing-which

is

bullshit.

Help me

understand whe.t

he's doing, please.

Okay,

listen. Paul, I own 40 ofa company.·

Okay?

.You

know,

I

mean,

do

yo

know

~

history·of .. ofumm

....

somewhat of the history of the

company, do you know what I mean? I started the company. You know,

Warren got manied and wlllln t even around for two ycmni, you know what

l mean? Are

you

listening? .

Yeah, no

I am. I'm just ..

Oh, 1lk.ay. Jdida'L-l'mjust Uying.to give

you

a perspective that that

umlJI ....because I've already kind of faced Warren once when we've been

P.

04

ooooi


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Paul:

DC Ulis:

Paul:

Dennis:

a u ~

Dennis

Paul:

Dennis:

Paul:

fighting and it

just

angers

rne

that

...

hat

I ve

not done

anything

wrong

.

. .rm a

very straight person. I did something very good for

this

coimtry.

Absolutely,

I

h o l e ~ h e r t c d l y

agree

with

you.

But Paul the problem is is

that

listening to Warren - you know when Jwas

in

court Warren alleged

tbat.

..you

know

we ...

Warren

and 1

kind

of

·

already sµart (? - 021) once in court.

Oh,

okay.

A very limited

basis becauae you

know, basically... .in

Dece111ber

or

well actually

1

hink it was

tho

day. before that

I

had

actually

seen

you

when you were

coming out, you know what I

mean?

Right.

Him

aiid I kind of

when at it because

I ve

been paid

~ little

out o

the

company, 8 l:ld people can liSten

to

his

rhetoric

all they want

but that s

the

ll:uth. And

)IOU know, I

was

more

interested

in making sure that the

worl

· oftbis

country

is protected

versus what

he might

decide

to want to do

with

it on

his

own.

·

And

you ve

done

an

extremely good

job of

that.

But

Paul,

who believes that?

I don t

know.

I ve

onlyheiU"d

one

oide

o

the story. You know,

I have

not

been able to have

the

luxmy

o sitting

down with

you

and

listening

to you.

And

I

think that would

be

veryvaluable

to do.

P. 05

00002


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Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 5 of 28PR 09 2007 MON 03:25 PM LSS/CRS FAX NO. 202 307 2066P. 06

Paul:

Dennis:

Paul:

DenniS:

Paul:

Dennis:

Paul:

Dennis:

· Paul:

Oennis:

;y

Well but

the problem· is, yiln know, Warrens

out

there saying I called

FBI

you stole stufffrom me and all this other nonsense. I. said are you

kidding?

Are

y;iu

..

,J

mean

the

problem is

there

a.re

people like Patty Gray

and

those

people in there with mouths that

arejusuaying

anything

they

want to say, you know whnt I mean?

Sure.

And you re pretty familiar

with

their mouths.

Yeah, .I have been around tllerii

often

enough to

understand

that thoy

say

things

that they don t necC.,'IAliiy 1211dct'lltandor uh should not

have uh

becn

privy to.

Well not only

been privy to

but people

that have told me

specifically

not

to discllise cettain things

ie ae

x

group

(?-038).

Correct. Which is

And

who

lhosfl

people were.

illld

what those

people were

here doing you

.

.....

know

and fvci got

Wime'n

here

saying you know you

could ... n

court

..• beoause

hasiO#lly

W'arren and I

the

issue comes

down

to

um

who

bwns w h ~

stuff.

That s

really

what

it comes

down to.

Uh·huh.

Imel Warren

eight

Y


6/28


·

Paul: ·

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:·

Dennis:

Paul:

Dennis:

.,-.I-,;·

·

<

Allight.

And there s an agreement.that basically outlined that very c carly.

Okay.

Yau

know what

I mean? The

problem is

that when I

started doing work

p r i o ~ to. ?·045) that

did not involve the work that Warren

plirchased -

he hwl no rights to it. Aud he kept

telling

me that he would make

me

whale and resolve my differences

on

iue

work

that he

never

purchD.Sed

or·

any rights to. P ~ r i a d

What.did he mean

by

tba1 l

W ~ l l me, I own copyrights. I still have copyrights in

1982,

1985; 1989.

Jnmytiame.

Okay.

On work that had

nothing

to dQ

With

compresSion

blit

had

to

do

work

...Witlalmilar-

work .that

you'.ve seen

me

do

to and

so forth.

Okay

•

And thmre arc

iiimy

name.

· nd when

Warren and I met eight

years .ago

he s p e ~ f i c i ; i l l y

did

riot

want to

buy

that

work b e c a u ~ e

I

wanted

a lot of .

money

for it. So he siri.d...be believed at the

time

the data

compression

.

. .

part wrui the most ~ p o r t a r i t part tO him and ...

and you

k:riow proccodcd ·

. .

aco:irdingly.

But

I have

spont

millions

of

my

own

money, a

lot

of

money,

bu.ildui.g that

technology up

and

low

and

behold it

became very

useful

w ~

group caine in.

Paul: Wha.t technology are you talking about'?

Are

YPll talking about the ...

P

07

nnnn


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Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis: ·

Paul:

Deuni5: .

Paul

Dennis:.

(?-OSS)

recognition.

Oh, okay.

,_,,·

That

had

nothing

to

do with

Warren s

purchase,

and Wam•n

actually

admitted that

he did not

buy that

So,

he never

offered

... .

But you

know

Warren ...you know Warren s out there just saying

anything

that he wants to say - Kenneth stole classified information from the

(:9mpany. I

mean, are

you

fucking kidding me? You

know?

Imaan ..

I

mean

... hey ...

you

know

we ll

.have

to

notify

OSI

that you ve been out

uh

you know with

clasiiified

infonnation. That s

all bullshit.

Why would ...

You know

me

p.i etty straight,

don t Y' '?

Yeah,

I

do.

That s

why

...

Do you think

l would ever

fucking do anything

like

that? Personally

through the ...

yau

couldn t

even find

anything in our

company

that s

classified. That s the first problem. But you know Patty ...Patty

wanted

to··

make a point

with

Warren

will

say anything, you know what I mean.

Pa you think ...

l

mean

... I would .. .It l ~ t f t u ~ t r a t e s

mo

immensely that

um

I ve done the

right thing

and I ve.done

tile right thing every

single

time.

And

you know

I told

you

that when I

mcl

Warren I ve never really

had

a

great

relationship

with Warren,

you know whal I mean? l

mean Warren

00005


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Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

·Paul:

Dennis:

Paul:

Denni :

Paul:

Dennis:

Paul:

Dennis:

obviously

as

you

all know had a negative relati


9/28

Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 9 of 28PR-09-2007 MON 03:25 PM LSS/CRS FAX NO 202 307 2066

-

Warrens out hei·e with

all

his

~ e l t i o n s h i p s

"General Bath (?-082)"

l\lld

all ·

thi::se

other .. I haven t

talked to anybody,

yau know what l

mean.

Paul:

Well,

J

know he

person you ve

spoke

to

most was me al)d

I haven t

heard

from

you in awhile so

I

was concemed.

Dennis:

Well the reason you.haven t heard from

me,

Paul, is because

I m

going

scorch ( l-085) with Warrant Trepp: And you can imagine i Rudy

Guiliani

1111d

his

whole UlllY can t fight

Warren

- he s not an

easy

guy to

fight.

Paul:

Uh, huh.

Yeah

...

·Dennis:

That s Lhe truth.

Pau,l:

Okay.

Dennis:

Becl Use

the

reason is because

he

doesn t want to fight fair, and· I m

not

sure to whine or cry or throw a

fit

on your shoulder or say anything else.

· Paul:

No,

I.

l mjust

truly concemed about you and thai s why I called. And

Dennis:

. .

Well

I think that people should

be concerned

that you think there s more

tluui one side to s o m e b o d y ~

story

that he s

out

just ~ l i n g it to." You

know

what

I meiin?

Paul: l absolutely agree with you that s why I d love to sit

down

and talk to you

Dennis:

about

that.

Yt1u know; I

~ n

if

Warren, you

know threaten I ll just gQ

to

the FBI and

say T tole everything. How can you say I stole everything, one· I own

half

of he company.

Let's utart with that problem, right?

,

.

P.

10

00007


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Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 10 of 28PR-09-2007 MON 03:26 PM LSS/CRS FAX NO. 202 307 2066

Paul:

Dennis:

Paul:

Dennis:

Paul;

Dennis:

. ~ .

.-

. •

1

·

Wqat did

he ....What's-be...

I mean that s the

kinds of

things he

would·do

just

to:

..to

irate

something.

You know what mean?

.And

that s bullshit.

What does

he ..what

docs

be•.•

I mean the fact is that the

work

I

did forlil is

100 accurate - more ·

accurate than

people Will ever know. Only c o u f i ~

by

the

people

P.

11

that ... at least that there was something there

what

it

was

who could tell on

-

-'

your side

of

he street.

Paul: Oh,

that s

why

I m

so

disappointed

bllCause we you lolow we

had money

loaded in a pipelfue... .

Dennis:

Paul:

Dennis:

Paul:

Dennis:·

Okay,

but

Paul; so why doi1s

it have

to stop bccs.uSe he s

a

prick?

- - -

No,

it doestl t have to 11.top

but he

ribviously can t

do his

work.

Well, that s nol my tilcklng-ptoblcm ill It?

·I don t

think

it s: .

right

now Tdon t think

it s

anyone's problem. I m

just ..

I

am just trying to figure out

wliere

J

go from here.

-

Okay where

you

go, listen.. ,the

problem that

I

have with Wan·en is

that

•.

,

when

I

try to

...

you_

know,

lmean ...whet)

the people

that

came out

a(ld you know who I m talkirig to • about .. J went to.enormous

lcngtl1

to

. I

protect everythi11g that was jione·- stuff

was

etlQ1 Y.11ted and litl fa:r:th Do

you

know what I mean'? Does

that

make smse?

Paul: - O k ~ Y ·

00008

_


11/28

Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 11 of 28APR-09-2007 MON 03:26 PM LSS/CRS FAX NO 202 307 2066

. Dennis:

. Paul;

Dennis:

Paul:

Pennis:

_

;

1

'

Okay, I'm just

telling

you it

was.

And you know it's like. ,,J

was

in I

was fighting with Warren in court 11I1d Warren

said

I want you to divulge

w:ho

all

you

djd all the

work

tor

and

each

_of

their

names

and

phone

numbers-which

is

cleuly illegal .. You k_now that

Well, you did sign

a

non-disclosure

agreement

and

you

have to

honor

th t

Well i.:.andyou

know

what the judge

said.

fthe

government

doesn't

protect that order

than.you're going

to jail if you don't

start

naming

n a m ~ s And that's bullshit as

yau

all know

Right So who

...

And the.letter I

signed

...yciu know...

when

...when I

think

it was

wh o

·brought out the letter l

had

to sign.

Paul: ·Right.

Dennis: · The word treuty is every

third

wor.d: You know the word ...what I'm ·

tn king

about.

Paul:

know. Where dO I go from here. Where

does

the government

go?

We

Dennis:

Paul: ·

()ennis:

have

this

capability

we wcr·e

•.•

The capability is this.:.rm going to tcll you how

this

is

goillg IO get

resolved...:

in

a very easy manner.

Okay. ls

that the

aovem.ment would·

invoke it's privilege and.

say, you

know, he doesn't have

lo

divulge these

.names ~ what the wod: i ;_ Which is clearly

What

igned

saying

wouldn't.

I'm not

fol .owing .. :

.You

know

what I me11n?

I

P. 12

00009


12/28


Paul:

·

Denriis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

D.ennis:

Paul;

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

. - .

No, I m not

following that.

Okay,

I

did

work for

two

rea

groups-original

group,

correct?

Yeah.

And

Socom

? ~ J 23), right?

Right.

.

Well

l signed the same

thing

wi¢ Socom, right? I can t divulge who they

11re you know,

what d ~ v i s f o n

they work for.

You kno'll/,

they

.make me

sign

the

same.Jetter, you

know,

you

won t

diselose

the identity of the

people,

righf/

Okay, 1...

Obviously the govenunent :aiust be concerned that they re

not

saying wlio

these people ac w -llY

are,

yuu knowwhat l

mClllll?

Okay

1

.

1

.L.let s getpas:t that. What

are we

supposed to

do now?

Okay,

I wapt

the

work

to

be: done and completed.

S> me hore

and

that s ...

And that s goiilg

to

be without Warren Trepp. that s his problem and not

mine. You underst ind?

Okay.

I can t

·control

a plll'Son that was going lo do something very ba,d.

What

do

you

...

He

... he

never left·hi,s

roou

. You

know who

his

ex-partner

was,

don t

you'

Paul: Yes.

P. 13

00010


13/28


Dennis:

P ~ u l

Dennis:

Paul:

Dennis:

Paul:

Dennis:

·Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

._

Olajy Well, vi)1Ually he s not telling the whole truth in the last month.

Alright. •.

Unfoituruitely

I

heard something

that

was

not

good.

Well, obviously when

I come out

hopefully you can explain that to me.

· 1 would

he more

thau glad to. ·

But whete do I

go from

here? You

know,

whatdo I

tell

the people back in

DC -

do

I tell.

them

to forgst

about

the money and put it away and

...

Absolutely uot.

Tell

them you re going to

do

the

...

the work is going to be

done

-

ifit

has

to

be

done

from

me

that s

the

way it

is.

Okay.

I ll work out

whatever I have

to work out

so

the

governme•1t

gets what

. .

.

they want so

the work

can done.

Tiuit s

what

J

want

you to tell them.

Okay,

do ...so .. I

should

tell

them we

should come

see you ?

Yes.

Okay.

But Paw, want you to know something

whelher .. ..whatever happens. I

did

something so important

to

protect

the assets of

he United States

government, you

know,

that

I

still cry at night that I had

to

da it. And l m

the

one taki11g

the

beating for

it .. ,

You re a true patriot.

.

, .and I m

tired pfit

You rt:.

a

1n1e

patriot

and

I ve •lwuys told thatto

everybody. You know

that.

P. 14

11


14/28


Dennis:

Paul:

Dennis;

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Demris:

Paul:

Dennis:

Paul:

Dennis:·

Okitybut

you know

what ·-then somebody

needs

to stand up and help

me

fll(p)ain

that

when

tell

them what went 011

a11d

why

everything is

protected

as

it

was before.

Do

you know what

I

mean?

I

mean,

W a r r e n ~

out there alleging people

were erasing

drives and all this other nonsense,

y(lu

know

what

I mean? Don t be stupid.

Alright.

You know what l mean? l

mean,

I

mean

...Warren

had

the actual (?·151)

to say I don t even know

i

he was working

down

there

four

hours a day. I

m ~ a n 1almost fucking got up and.,.yoµ

know

...Just...

.So, you .retellingme ...

I m llllking

you

one thing.

What is it. ..

Just.remember his roots.

Th U's

what J m telling you.

Alrighty,

so

you re telling:me

And

that it was ....

You re telling me he still

has he

capability to do this?

No,

lie does

not.

Oh, he doesn t? ·

No.

Okay.

And.I made

sure

that.the assets oftlie

United

States government were

protected.

P. 15

0001;?


15/28


;.

.

~ - . 1 - ; < :

·,. . '

·._;

.

. ,•'

·.·•. _.,

Paul:

Alrighty.

So I need to get a hold ofmy bosses uh tt1111orrow and let them

Dennis:

Paul:

Dennis:

Paul:

Deonis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

knciw

that

i f we

want

to

continue with this.,.

Absolutely

100%.

Jn fact, I ve even think I ve actually eracked the

new

way,

right ...

Uh·

huh

...

on

top

ofl think I now more

than ever am certain

on

how it waii

being

done.

Okay,

And I would

think

they would have an interest in

that.

Yeah, they would.

I

was

uuderthe

impression

that the c11pability didn t

eitist that s all. ·

Okay, Paul. - and

you re

wrong.

Okay.

Aud I want to explain

one

reason why. TI1e reason is is because I was told

something

to do to

u.lways

ensure

that.it doesn t end

up

in

the

wrong.

hands. Okay?

Uh huh.

And

it

W l;

done.

. Okay.

And

1know

tha t .and

all .their

group can

say whatever

they

want,

but 1

know what I

did

...you know I mean ...so the

wwer

is the capability

eitisls and there s more than

one

side to a story and

they're

only

listening

to one

side ..

P. 16

00013


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Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 16 of 28PR 09 2007 MON 03:26 PM LSS/CRS FAX NO 202 307 2066 P. 17

Paul:

Alrighty ...

Dennis:

...and they re not hearing the truth, and I m sorry.

Paul: This

is

v ry

important ...

we

...

we were, you know,

we were getting close

to throwing...

you know like

I told

you

T (1t the

money

..

I was

going

to

mtum

it...

Dennis:

Okay,

Paul - the

reason

is because

you re listening to somebody th11t

is

...

Warr

en actually b ied to go to court

and

bad

the court.

force rne to

go

back

to

worl< for

him.

Paul:

Okay.

DtllllliS:

The prob Cl)l that

Warren

ill not sure ofis that I overheard

s o m t h i ~

and

Warren is not

certain

whether I overheard or not but he

h a ~

an idea now I

probably did.

Paul:

Okay.

Dennis:

Now he s out doing

his

little thingun\ to try to discredit me, you know

what l mean'

Paul:

Right.

Dennis:

And he s doing t and he s hurting me. But I did the right thing and

would do

it

again in

o.

hea?tbeat.

Paul:

Okay, yo11 did the right thi11g- I m a little lost with that ....

Dennis:

Okay, so I ll _be more than glad to tal.k

to

you - I want the work to

CQntinue, I want the work to got done

Paul:

Okay, alright let me talk to my boss ... .

Dennis:

But what

I don t

want to

hear ..

14


17/28

Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 17 of 28PR-09-2007 MON 03:27 PM LSS/CRS FAX NO202 307 2066

P

8

. Paul:

Dennis:

Paul:

Dllllnis

Paul:

Dennis:

Paul:

Paul:

Dennis:

Yeah

.... is somebody running tc the US Attorney

and_

letting W=llll ramble off

aimlessly on something he doesn t

know what

the

fuck

he s

talking

about

Okay, fair enough.

Okay, Paul -

call

anytime.

I will

and

l 1 call you back when I figure out when I'm

going

out.

Okay, but 'd be

more

than glad to talk to

you

and

you

know tlult Paul.

rknow that. Take care, my mend

Alright. Bye.

Bye.

15


18/28


.,_,.

P. Haraldson

to

D.

Montgomery

212412006

Dennis:

Paul:.

Dennis:

Paµl:

Dennis

Hey

Dennis,

Paul how

are you?

Hello'?

Hello, Dennis?

Dennis?

Hello?

Line cut out ...

Demtls:

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dmmis:

Paul:

Dennis:

Paul:

Dennis:

Paul:

.Hello?

Hey Dennis, Paul.

Yeah,

f'm

sony you're

wife's

not feeling

well.

Thank you,

I appreciate

th.at.

I've had

my

share.

Yeah,

I

know

you have ....Dennis?

Yeah?

Le me

spClllk

for

a

few minutes

here,

okay?

Yeah.

went back, and I told everyone back at the uh home office here regarding.

our

convlll Sation and

they

were

very excited.

Y1rah.

Seca.use

th ir assumption

was

that we didn't

no

longer have the capability

the

source

code

whatever to continue

on

with the

project

so

they were

very

excited about

that,

Dennis: Yeah.

P.

I 9

16


19/28

Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 19 of 28PR 09 2007 MON 03:27 PM LSS/CRS FAX NO 202 307 2066P. 20

Paul: . ·

Dennis:

Paul:

Derinis:.

Paul:

DMnis:

Paul:

Dennis:

Paul:

Dennis:

Paid;

Dermis:

•

.

._.

They

arc very anxious

to move

forward. The only

concern

they lave,

obviously,

and

I

thlnk you'U be able

to

appreciate

this

is·

that the

o b v i O L ~ l y

tile

SOU Ce

code

was

once

at one

location

and now

apparently

talking

to

you it is at you're in possession of t so what

they'd

like

to

do because it

went from one

location to another

location

obviously

there n e e d ~ tu be

someone to

co1ue out and

just validate

that

the capability still exists.

Does

that make sense to

you?

No, no, no that doesn't to

be

very honest with

you.

Okay.

The

problem

I

have in all

of

this

whole thing

is

that when you

say

the

source code existed at one place you ·were assmning Etrepid, right? ·

Yes.

Yoah, okay that's a bad as9'unption.

O k a y ~ ·

Because T old everyone I built it, you

know,

15·20 years ago.

Okay.

You know, that's what

my

copyrights rel1ected

on all of hat, okay?

Alright.

The problem that 1have ill that is

everyone's

listening to

Warren

- tilat's

the

problem.

That

is

the sixty four dollar problem

and

Hennesey and all ·

those

people

arc running

arounq listening t wilat he's

s a y i n g ~

That's the

problem. Okay, that is tile problem. The

problem

is

th t

War1·en went

and

got a TRO

(?-037)

against me in

C(lUrt

because I refused to

name

who

my

17


20/28


Paql:

Dennis:

Paul:

Dermis:

Paul:

Dennis:

Paul:

Denn.is:

. ~ >

,i

: /: '

•

.¥ °· .\ .

.clients were

and

each of the individuals

who

represented those clients,

. .

. .

which you know I;m prohibited from

doing.

I mean, I can't name.and

his

group.

-

No.

Right, right?

l mean, I signed

a

letter

with him

that every third

word was

treason, right? The SllJlle thing with

Socom,

correct?

Correct.

I mean I

signed the same wo 'ds.

So

they

wenrasking

me

questions that

you

know.lean'

answer

and Warren

knows

I can't answer

this.

This

is

not a mystery to

somebody:

This is the tnlth.

.

Oby ifwc ..

So,

the

juµgi. miik1:1s

a very

.simple

position - ifnobody from the .

govemr,nent comes

in and

t o p s this you either

answei

the.

question

or

you're

held in contempt, t h ~ t s it. Okay

so,

I'm

confronted

with the

.

.

problem that i f answer th11 q11cstion then I'm going to Ile sued

by

the US

govcmmcnt or go

Pill in

jail because 1 ust

disclosed the names of

1 g a n f a a t i o n ~ which

don't 1:ven

eitilll

or

I

can't say

and people

that

were

there.

How do we get

around this dilemma?

Well

rn tell

you

how

to

get around

the

dilcinma

..

The

dil$lmmas

thl)re.

·-okay ...

but

that

s the:

truth. I don't

care

what

Warn:;n

or

his PR

maohine

or

whatever they're

a y i n g ~ that is the

tnrt11. ·The

tmth

is

...

hat

. . . .

he ...on the

stand

forced me to. allSwer questions

he knows I cannot

. I

P.

21

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Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 21 of 28PR 09 2007 MON 03:27 PM LSS/CRS FAX NO 202 307 2066P

22

Paul:

Dennis:

Paul;

Dennis:

Paul:

·Dennis:

Paul:

Dennis:

·

· · _ / ~ · . · · ·

r, .

·

answer.

That

is

the

truth. There's

nothing magical about

l ~ r

whatever:

"Ihat is

the

truth. Okay'? So it's a very .. he state judge ... it's real

simple

...

wiill

the

governn1cnt

is

not

in here

trying

to

protect their

i11terests,

okRy,

then I m j u ~ t going

keep a TRO

on you

until such

time somebody

does.

Okay.

So,

I

talked

to •J didn't,

but

my

atton1ey talked

~ y o u know who the

•l•m

alkiug about?

Yep

Okay?

:And

his

attorney

..his

attcimey simply

said that

ifyou name the

govemtnent oo. a cross

defendant, right,

just pui them

dowu

b e c a l L ~ e ·

· they're illejlally using a

li0011Se

or whatever, okay, th11t if you put

them

doWn then we'll come in 11nd stqp

tho

TRO because we obviously don't

want

you J1aming

names.

Okay, the

prablClll

is. that Hennosey, and you

know who I'm talking about, is running around like 8 lunatic reilresenting

Warren and

his

PR

machinl '.

Okay?

And has

anyone

reminded the

people

thnt I own 40 of Etrepid'l I mean, do they think I own nothing ofit?

Okay,

so where do

...

Do you

knuw what I

mean?

Yeah, 1

do understand, so, where-do we go·

from

here?·

.

•

Okay, I nican ...what I would like the government to do is

to

come

in

and

block the

unblock

the TRO and

then.I'll sit

down

with: anybody

they

want

00019

• ..

·. .-


22/28


Paul:

Dennis:

Paul:

Dennis:

Paul:

Dcilnis:

Paul:

Dennis:

Paul: .

Dennis:

•

.

and make a deat Okay? No one is g0ing to make a deal

ifJ

don't have

·the work. built thc

god

damn thing and everyone knows lhat.

Okay

I mean there's no

mystery

on.who built It

is

there?

No,

l..I..

Paul?

No, I am just concerned about

continuing

the w o r ~ that's what I'm

concerned

about

right now.

Okay,

me

too.

1want the

work

done. That's what l want

Okay.

What do I have to do from the government's position to

continue the

work?

You

tell me.

Wcll obviously w need to go ahead and we just

need

to make sure that·

the capability sill exists.

Okay.

Let's

assume

I l i l l l giv

you

llVid.,nce that lhal's the

case.

Okay ?·

Whatever that's going to bi:. What.do I have to do th.en?

Paul: If hat's the

case,

then obviously we have to go into some type

of

Dennis:

PaµI:

Dennis:

Paul:

negotiation

about

licensing or.rights to it or whatever.

Okay, so

why

caii 't [. ..why is.

Hennesey doing what he's

doing?

I

can't answer

that.

.

Well, what is his role there-let 's startwith that?

His

role is ·he wol'b as the director

11f st:L-urity

for the AirfoTce.

P 23

2


23/28


Dennis:

O ~ y ,

so

Warren

can rant

and

rave

and

say stole ... why

has

he never

called mc'l

Why

is he

listening to

one side.of the story

because

ilfWarren

Trepp?

Hasn t

he

ever

thought that

there s a

guy that owns

the

otber

40

of he company?

Paul: When I QIDe

out

there you and I

can

sit down and we

can

discus8

that

Dennis:

Paul:

Dennis:

l mllying .. I am trying

to

:refocus this effort becau$e everyday we no.

longer prQcess ...we no longer ..

we lose

valuable information.

Are

you

kiddi.ng me? Realiiewhat? The guys mwer going to (?-087) Go

look

at

last year s

work.

Sc>

my

point is

I

agree

with

you.

So

alls

I

want

to

do is

very

simply - l want

to

be

able

to

complete and finish

the ,work.

We can go ell argue it

someday,

okay,

who owns

it wl1atever they want.

aut I know

what

he was going

to

do

with it ftl d Hellllesey doesn t. And

he s

making

a

very

stupid fucking

assLtmption because

he docsn

t

know

thel Uth. lbat s the

p r o b l ~ ·

That is the exact problem

because

they

are

listening

to what

he

said. ffhe wanted his

ex-friend

from

Drexel

to own it

does

Henuesey care?

He doesn't

know

what he s tlllking b o u ~ you know

what [mean?

Right

I m just telling you Paul, ~ t s the tlilth. So, what I m trying

to

do is say

what do

I have to

do

from the government's position

to

get the

work

done.

The easiest thing for me is ior the g


24/28


Pa11l:

Dennis:

Paul:

Dennis:

Paul:

Dennis:

l r i g h ~ so what you re telling me is yon want the government

to

block the

TRO •remove

the

TRO

Unblock the

TRO.

I ll sit

down

and

do 11Uything

they

want then.

So,

that s

a condition

of

us going ...

ncgotiating

with

you, is that

what

you re saying?

No, no, no. The

answer to that

is

no.

I don t know i hat s (?-103)

enough but I just

thought that was easiest

to be very honest with

you.

·

Well,

l m setting au

that a ~ i d e

What

I m trying to

do

is I m trying to re

establiSh

the

capability.

Okay, so

so

my •.. l guess my quC11tion

really

is what is

it that you

want

me

to do what does

the government want to

do? Do they want to end their

Jigensing

agreement noW?

PllUI: What we d like to do is come out and discl.J5s

all

these things with

you.

Dcrulis:

Paul:

Dennis.:

Paul:

DC lllis:

·Paul:

Dennis:

We .•.

Okay,

I d be

more than

glad

to.

I

know that.

Who s

going to come out?

Well I probably would have someone like Mike Carter or somebody ..

Fine,

be my

guest.

1have

not

called

Mike Carter if

you ve

noticed.

I don t

know

that-but, okay, I

believe you

.

. No, but

I m just

telling you

that I ve

talked to nobody but you. And

I ve

·taken the position of why

would

I

go

out

and

do

all

this when he s going

to

do what he s gohig to

do.

Jmade a lot ofUloney for Etrepid

and

P.

25

00022


25/28

Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 25 of 28PR 09 2007 MON 03:28 PM LSS/CRS FAX NO 202307 2066

Paul:

Dennis:

Paul:

Dellllis:

Paul:

Dennis:

·

Warren

is u ~ i n g

my

own·money against me, and

I'm

$0

insulted that

people over

the

last 20 years who know

any

history of hat

man

wouldil'

t

stop for

ten

sl:lC()nds

and

think

god

is

there

a

different side

to

this

story.

Jthink that's why J

would

like

to come

out and speak

with

....

. I

would be

more than glad to

••.

Paul.. .anytime

you ,would

like with

anybody

Mike

Carter or anybody

else.

Okay, well

this

is the issue. Everyone here is

excited

that the

capability ·

stiil exists because

like

I mentioned to you. previously we were unccnain

that

it

did.

t

appears

that

...

Okay, but why

wouldn't

they

go ask

the guy that built it?

If

you go look

al

anything in the lawsuit I made it very clear my copyrights all existed ten

years before I kn


26/28


.......

·

Paul: .Well, w ~ r e

going to • •

we re

going to be

able to

hear

that when we come_

out

thtlre and discuss

it

wi_th

you.·

D.ennis:

Paul:

Deoois:

Paul:

Dennis:

Paul:

Dennis:

:Paul:

Dtmnis:

Paul:

Dennis:

Okay,

be more

than

glad

to

r know

that.

The only concern

that they

have is they want

to

know

the

capability still exists. You tctl me

it

does, they d911 t ...

The

answer it does.

Olcay, I understand.

And

tltc

other problem

is that they don t have any

proofthat it docs exist, so what we re looking for is if I

can

hling someone

out

with

me

that

you

know we can

go

ahead and we

can

look

at

be

· · capability

aiid can

say

hey it

still exists.

Is that

something you d be

willing

to do?

As long

as the intent of hat person coming out is not

to

tryto take that

.away

:from me ..

I don t understand what you

ll1ll1lII

by thst.

. No, but. ...1mean... he answer to that is in whatever way I got to prove it

·

exists

I ll

prove

it.

How s

that?

Okay

So,

when

is it that you

want.

tn come

out?

:Probably Wednesday ofnext

week.

Olcay. You know... t .s jllSt vecy sad is why ..

I

don t see...

the

problem

is

r can t control, you know, Ken Johns and all

those

people because those

people are all people

that

listen to Warren. They ve never even called

me.

But cannot control wmlt he s out saying But if n y b o d y ~ any

P. 27

00024


27/28

Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 27 of 28PR-09-2007 MON 03:28 PM LSS CRS FAX NO 202 307 2066

Paul:

Dennis:

Paul:

Dennis:

Paul:

Dcmiis:

Paul:

DCllllis:

· Paul:

Dennis:

Paul:

Dennis:

-- '•,

knowledge of history they

would

tbcre

has

lo

be

some other side

to

this.

You know what

I

mean? Come

on.

Yep.

Gotcha.

.

Okay.

Alright. J wi II call you.

·I ll assume tllat you ll

be

out on Wednesday

then.

Abighl And if ..

what

do you

tliink is

the

best way to convince

lhe people

hack here that

we

... the capability exists and

we

mil

h11v1:1

the.ability

to

move

forward

on

this

effort.

J ll think about

that

...

you know

...

and

give them

anY

.SSwances

that they

:ultimately want. I

guess

my q1.1estion to them

was

if 1enter a license

agreemtllJt

and

it

doesn t work then

1 don t get

paid

anything. You

know

wliat

I mean?

r

mean, I don t get

any

money.

Okay.

I

mean,

I m

not

looking

for

you a·give me

money

tbr

something

that

doesn t exist.

You cwijll t

tell

them that. Okay, I m lookjng to

get

paid

on something that ultimately exists

and they can

validate or whatever

they re

going to

do lO ultimately do

all

of

hat. Okay,

no

one is

trying

to hold the

government

hostage.

Okay.

l

don t get a dime

uni ess work .

Okay, well you

think

of

way that we can

...wc

cun

...

Okay, I will. I got it.

P

28

00025


28/28

Case 3:06-cv-00263-PMP-VPC Document 71-2 Filed 09/13/06 Page 28 of 28PR 09 2007 MON 3:28 PM LSS/CRS

Paul;

.Dennis:

Paul:

Denni

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