Who's Who Worldwide Registry 20-plus million dollars per year to zero in five seconds flat
The next installment of this fascinating saga (WWW Trial Transcript Jan29) continues beneath the following paragraphs.
Never once in American history has a company generating millions of dollars per year -- -- been closed in a single day. Never. Until 74,000 members of WWW Executive Club had the door slammed by the U.S. Government.
Publisher's Clearinghouse and Family Publishers and so many other similar companies pay tens of millions in fines for directly deceiving millions of us. Can anyone deny the enormity of impact on sales when Ed McMahon and Dick Clark enthusiastically, nationally promoted magazine sweepstakes scams for years and years? Victims who sold their belongings to fly to Prize Headquarters, people who were falsely told that they were millionaires only to find others just like themselves. Several millions of Americans duped into phony sweepstake scams and schemes that netted enormous profits? Although Publisher's Clearinghouse subscriptions were paid in full, neither Dick Clark nor Ed McMahon have been arrested, have they?
Has even one actual human being from these companies ever been arrested?
When the US Government disapproves of a company's practice, they usually resolve it informally, with at least a warning or three.
With the apparently too-powerful WWW Executive Club, the US Government waited several years... and then shuttered the WWW Exec Club with a 5-minute execution. Never once a hint of disapprobation... until the kill.
There are now hundreds of fraudulent companies negotiating with the U.S. Government ---never losing a day of business. Yet WWW Executive Club, after six years of obviously top-notch service to 72,000 American role models of excellence, was closed in a single day, with a federal raid; with conscientious, professional innocents led out in handcuffs and humiliation. Is it possible to consistently deceive 72,000 of the sharpest men and women in America? The CEO's, Chairmen of the Boards, Exec V.P.'s in 800 of America's largest 1000 corporations? 72,000 of America's best and brightest? From Sumner Redstone and Georgette Mosbacher, both of whom were profiled nationally in the WWW Executive Club Magazine (the one with full-page ads from Izod, Cadillac, Seagram's, all of whom had important Republican men and women in the WWW Exec Club, to thousands and thousands and thousands of additional corporate and institutional decision makers? Not in this life.
trial page 1951
Dirty Trials In American History
1951 19 Court Reporter: Owen M. Wicker, RPR 20 United States District Court Two Uniondale Avenue 21 Uniondale, New York 11553 (516) 292-6963 22 23 Proceedings recorded by mechanical stenography, transcript produced by Computer-Assisted Transcript. 24 25
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1953 Rosenblatt-direct/White
1 (Case called.) 2 THE COURT: Good morning. 3 Where is the witness? 4 (Jury enters.) 5 THE COURT: Good morning, members of the jury. 6 Please be seated. 7 Again, I want to thank you very much for your 8 diligence and punctuality. I'm sorry I kept you waiting. 9 I had two other matters on this morning, which I'm still 10 discussing with the lawyers and that is the reason for the 11 delay. 12 You may proceed. 13 A N D R E W R O S E N B L A T T , having been 14 previously sworn by the Clerk of the Court, was examined 15 and testified as follows: 16 Mr. Rosenblatt, you are still under oath. Do you 17 understand that? 18 THE WITNESS: Yes, I do. 19 DIRECT EXAMINATION 20 BY MR. WHITE: (Continued.) 21 Q When we broke yesterday we were discussing the loan 22 account for Who's Who Worldwide for Mr. Gordon for the 23 year 1991. Do you recall that? 24 A Yes, I do. 25 Q And we were looking at Exhibit 655 which was the
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1954 Rosenblatt-direct/White
1 Who's Who general ledger for that period. Do you remember 2 that? 3 A I don't remember the exhibit number, but yes. 4 Q And that only went to July of 1991; is that correct? 5 A That's correct. 6 Q Now, let me show you Exhibit
1004-A. 7 Have you prepared an analysis of the taxable 8 income -- 9 MR. TRABULUS: Objection, Your Honor. 10 THE COURT: I didn't hear the question. 11 MR. TRABULUS: I'm sorry. 12 BY MR. WHITE: 13 Q Have you prepared an analysis of the taxable income 14 to Mr. Gordon for the years 1991 through 1994? 15 MR. TRABULUS: Objection, Your Honor. 16 THE COURT: On what grounds? 17 MR. TRABULUS: On the grounds it calls for 18 testimony relating to a legal conclusion, relating what 19 the income is and not taxable. 20 THE COURT: That's not necessarily a legal 21 conclusion. While it's true, this witness as an expert 22 cannot give legal conclusions most of the time. That's a 23 very interesting issue. Where you have ultimate 24 conclusions and legal conclusions are two different 25 things. But with respect to what is taxable from an IRS
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1955 Rosenblatt-direct/White
1 point of view, he certainly can testify as to that. 2 MR. TRABULUS: Your Honor, I would like to 3 approach with a further discussion because I believe in 4 this particular instance you should not. 5 THE COURT: All right. Come up. 6 MR. WHITE: Your Honor, maybe I can move things 7 along. I don't want to move the exhibit, I want the 8 witness to refer to it for the purposes of its 9 calculations, not whether or not it is taxable income but 10 the numbers as it relates to companies and years. 11 MR. TRABULUS: Well, the jury already heard the 12 answer or having heard the question, it will be clear to 13 them that any testimony that he gives with regard to those 14 numbers is going to be interpreted that way and I think 15 the issue I'm bringing up at this point will recur 16 throughout the testimony of this witness. I think we 17 ought to address it at this point. 18 THE COURT: Come up. 19 (Side bar.) 20 THE COURT: Yes. 21 MR. TRABULUS: Your Honor, with regard to the 22 Federal Rules of Evidence not changing the prior law that 23 a witness cannot give a legal conclusion, I would cite 24 U.S. v. Scop, 846 F.2d at 135. It was a subsequent 25 opinion but it didn't change the reasoning of that.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1956 Rosenblatt-direct/White
1 THE COURT: What does that say? 2 MR. TRABULUS: Basically the old rule that an 3 expert cannot give a legal conclusion still applies. 4 THE COURT: Is that a tax case? 5 MR. TRABULUS: That one was a securities and mail 6 fraud case. 7 THE COURT: Well, that was apparently prior to 8 1994. Certainly -- 9 MR.
TRABULUS: It was '88. 10 THE COURT: There were a couple of changes since 11 then that have refined that. 12 MR. TRABULUS: I know that. Let me get to the 13 particular reason that Scop would govern. 14 Based upon the government's disclosure as to the 15 basis of the expert's opinion, he testified that the basis 16 for the inclusion of the loans as income was based on the 17 lack of good faith intent to repay, among other things. 18 Now, the lack of good faith intent to repay, as I 19 understand the case law, is indeed the sine qua non 20 whether or not a loan is a loan or is to be treated as 21 income. But intent and good faith are issues of mental 22 state and Rule 704(b) would preclude testimony concerning 23 that. So what he has done is couched in terms of 24 testimony as to whether income is taxable or not an 25 opinion as to whether or not there was good faith intent
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1957 Rosenblatt-direct/White
1 to repay a loan at the time it was made. 2 I would submit it was not admissible under Scop 3 and under 704(b). 4 MR. WALLENSTEIN: I would join in Mr. Trabulus' 5 application. 6 THE COURT: Yes, Mr. White. 7 MR. WHITE: Your Honor, Rule 704(b) prohibits an 8 expert offering testimony on the defendant's mental state 9 to commit the offense that he's charged with. That's 10 quite different than what Mr. Rosenblatt will testify 11 about. If that were the test that you can't say anything 12 at all about intent, then -- I'm sorry, if the test where 13 you could never talk about the law, legal conclusions no 14 expert could testify. Every determination of taxable 15 income involves applying the tax code and the regulations 16 to the facts and number at
issue. Scop, that case is 17 entirely different. That was a securities fraud case 18 whether the government put on an expert who said that 19 these acts that the defendants on trial did, in his 20 opinion, constituted a scheme to commit securities fraud. 21 That is entirely different than this. 22 THE COURT: What is this expert going to say? He 23 will say that assuming these matters are not loans, they 24 would be taxable income? 25 MR. WHITE: Correct. And the test --
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1958 Rosenblatt-direct/White
1 THE COURT: What's wrong with that? He's not 2 saying -- he's not getting into the intent of the 3 defendant. He's saying that assuming that they were not 4 loans they would be taxable income and isn't that what you 5 are saying? 6 MR. WHITE: Well, yes and no, Your Honor. The 7 tests as I understand it under the tax code and 8 regulations in terms of deciding whether something is 9 income or loans, involves whether there was the intent to 10 repay the loans at the time they were taken out. 11 Therefore -- and there's a series of factors in the cases 12 about specific concrete factors that Agent Rosenblatt will 13 apply to determine whether or not these were in fact loans 14 or whether they should be considered income. That is 15 entirely different then the mental state required for 16 conviction. He will not testify that Mr. Gordon willfully 17 conspire with Mr. Reffsin, he will not testify that he 18 submitted false tax returns, his determination is not at 19 all inconsistent with an acquittal. He could say look 20 under IRS regulations and cases this is income, but they 21 could still say, which they apparently will say, 22 Mr. Gordon didn't know that, it was an honest mistake, a 23 lack of evil intent. 24 THE COURT: Wait a minute. What will he say? 25 Tell me.
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1959 Rosenblatt-direct/White
1 MR. WHITE: He's going to say -- well, there's 2 two parts to it. With respect to the loans, he will say 3 his opinion is that they were not bonafide loans and they 4 therefore should be considered income. 5 THE COURT: And give the factors for that. 6 MR. WHITE: And among those reasons are the 7 failure -- the lack of any notes or written documentation, 8 the failure to repay any significant portion of the debt 9 and a series of other factors. Those are the factors that 10 are identified in the cases. 11 MR. TRABULUS: May I be heard further? 12 THE COURT: Yes. 13 MR. TRABULUS: The testimony supposedly will be 14 -- this is a disclosure I was given. With the Court's 15 permission I would like to read from the letter that 16 Mr. White wrote to me in connection with discovery here 17 "as set forth in the government's October 28, 1997 letter 18 to Mr. Carman," who of course was my predecessor, 19 "Mr. Rosenblatt's opinion is based on the lack of any 20 pattern of legitimate repayments of these loans. 21 "Most or all of such payments were not bonafide 22 in that the funds used to make such repayments were simply 23 obtained from the same corporations as to whom repayment 24 was made." 25 Now, bonafide is simply Latin for good faith and
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1960 Rosenblatt-direct/White
1 there is a good faith defense in this case and under the 2 case law good faith is a complete defense. And that 3 relates to the mental state of the defendant and he's 4 attempting to negate it through the testimony of an expert 5 and I believe that is in violation of 404(b). 6 However, he dresses up the testimony concerning 7 it was taxable or not, it negates the good faith as 8 opposed to income. We are not talking about the situation 9 where the witness will testify as to monies that were not 10 reported but simply the characterization of them. As to 11 good faith, I think 704(b) includes it. 12 MR. WHITE: There's not been a tax case invented, 13 yet when an agent testifies yes, this constitutes 14 income -- 15 THE COURT: Well, one of the most interesting 16 cases on expert testimony is United States v. Duncan, 42 17 F.3d 97, (2d Cir. 1994). It was an excellent discussion 18 of expert testimony. It happened to be not a tax case, it 19 was a conspiracy bank fraud and making corrupt payments to 20 public officials. But in this it goes -- the basic rules 21 of expert testimony in a criminal case "expert testimony 22 may be admissible if it is helpful to the trier of fact. 23 That's the starting point. Expert witnesses are often 24 uniquely qualified in guiding the trier of fact through a 25 complicated morass of obscure terms and concepts, because
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1961 Rosenblatt-direct/White
1 of their specialized knowledge there testimony can be 2 extremely valuable and probative." 3 Couldn't be more applicable to this case. 4 "However, expert testimony is not permitted to 5 usurp either the role of the trial judge in instructing 6 the jury as to the applicable law or the role of the jury 7 in applying that law to the facts before it. When an 8 expert undertakes to tell the jury what result to reach, 9 that does not aid the jury in making the decision but 10 rather attempts to substitute the expert's judgment for
11 the jury. 12 When this occurs, the expert acts outside of his 13 limited role of providing the groundwork in the form of an 14 opinion to enable the jury to make its own informed 15 determination. In evaluating the admissibility of expert 16 testimony the Court requires the exclusion of testimony 17 which states a legal conclusion." 18 Then they go into certain things involving tax 19 cases. 20 "Appellant takes exception to a number of 21 questions which the government was permitted to ask the 22 agent concerning the proper function of the tax system and 23 the importance of filing tax returns accurately. These 24 questions, however, did not ask the witness to express 25 legal conclusions but --" this is key to this case "but
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1962 Rosenblatt-direct/White
1 only to explain sophisticated aspects of a regulatory 2 system for which the witness had expertise." 3 Now, I'm departing from the text, that's exactly 4 what this will do. We've generally permitted the 5 elicitation of testimony from expert witnesses that shed 6 light not within the activity of the common knowledge of 7 the average juror. 8 In this particular case there was a defense that 9 since taxes were paid on the property, the government did 10 not lose anything by inaccurate tax filings and the Court 11 of Appeals held it was proper for the tax expert to 12 explain why this is not good, although the taxes were 13 paid. 14 MR. WALLENSTEIN: That's not this case. 15 THE COURT: I know it's not this case, but it 16 provides guidance for the Court, a lot of guidance. 17 Agent Mulligan testified based on his own 18 investigation of the facts and review of the records. The 19 testimony he presented did not rely on the credibility of 20 other witnesses. 21 MR. WALLENSTEIN: Your Honor, doesn't an 22 explanation of the legal explanations of the tax code 23 differ from an expert witness attempting to assert the 24 defendant's intent? 25 MR. TRABULUS: And here the legal conclusion is
HARRY RAPAPORT, CSR, CP, CM OFFICIAL COURT REPORTER 1963 Rosenblatt-direct/White
1 premised upon a finding of lack of good faith which is the 2 heart of the jury's province. 3 THE COURT: No, in this case one of the issues 4 for the jury will be whether these were bonafide loans or 5 whether these were paid for personal expenses which should 6 have been reported as income. That's one of the issues, 7 correct? 8 MR. TRABULUS: No. 9
THE COURT: It's not? 10 MR. TRABULUS: No, there's no dispute most of 11 them were paid for personal expenses. 12 You can have a loan made for personal expense, 13 the issue is whether they were bonafide loans and the 14 issue as to whether the loans were truly loans which is 15 also separate from the issue of defendant's good faith. 16 The issue whether they were truly loans and properly 17 characterized as loans depends upon whether at the time 18 the loans were disbursed there was good faith intent to 19 repay the loans. That's the case law. That seems to be 20 what the case law uniformly says. There were many civil 21 cases, tax court cases that addressed the factors. I know 22 of no criminal case that ever addressed this. 23 THE COURT: First of all, I agree with you, good 24 faith is a good defense in all of these tax cases and I 25 will charge the jury the government has a burden of proof
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This site is concerned with The Smashing of Who's Who Worldwide Excecutive Club, and the double scandal of government and judical corruption in one of the Dirty Trials In American History and the concomitant news media blackout regarding this incredible story.
Sixteen weeks of oft-explosive testimony, yet not a word in any of 1200 news archives. This alone supports the claim that this was a genuinely dirty trial; in fact, one of the dirtiest federal trials of the 20th century.
Show your support for justice, for exoneration of the innocent, and for that all-important government accountability, by urgently contacting your Senator, the White House, and the U.S. Department of Justice. Remind them of Thomas FX Dunn, Worst Counselor Of A Generation.
The Smashing of Who's Who Worldwide Excecutive Club How Thomas FX Dunn proved himself the Worst Counselor Of A Generation
Dirty Trials In American History - The Smashing of Who's Who Worldwide Excecutive Club
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