** Something came up with a guy that was in prison for about 14 months and he got this letter and it looks like OCWEN Federal Bank, and it has an account number and he doesn’t recognize the number.  Anyway it’s for $1, 317,483.95 and it said it is due in 30 days.  It’s apparently a bill.  He wondered what in the world would this be from and he’s thinking that he was in prison, could they have sent this to the wrong address that it would be something the prison would bill or the bank would bill the prison or something like that?  Crime being big business and all.

R: Well I don’t think so… well they could of but somebody has used his name.

** Oh while he was in prison??

R: Sure… he’s not in prison now?

** No he is out.  He was in prison for 13 months and then in a half way house for a couple of months.  We thought the 13 months and the1.3 mil might tie in there some way.

R: Okay what does it say?

** It says “Please be advised that the Ocwen Federal Bank FSB has been engaged by the US Department of the Treasury Financial Management Services on behalf of the above named Federal agency to resolve your delinquent debt.  Please make your bank check or money order payable to U.S. Department of Treasury - FMS and mail to:  U.S. Department of the Treasury - FMS, Ocwen Federal Bank, POBox 530289, Atlanta, GA  etc.  Then underneath that is Notice Under Fair Debt Collection Practices Act:  1.  The amount of the debt as of 2/28/02 is $1,317,483.95.  2.  The name of the creditor to whom the debt is owed is the above named Federal agency.  3.  Unless you, within thirty (30) days after receipt of this notice, dispute the validity of the debt, or any portion thereof, the debt will be assumed to be valid by Ocwen Federal Bank FSB.  4.  If you notify Ocwen in writing within thirty (30) days after receipt of this notice, that the debt or any portion thereof, is disputed, Ocwen will obtain verification of the debt or a copy of a judgment against you, whichever the case may be and a copy of such verification or judgment will be mailed to you by Ocwen.  5.  Upon your written request within thirty (30) days after receipt of this notice, Ocwen will provide you with the name and address of the original creditor, if different from the current creditor.  Then it says:  This is an attempt to collect a debt by a debt collector.  Any information obtained will be used for that purpose…. Now I was thinking he should just pay this with his private check but he is afraid to because he is on parole for a couple more years.

R: Yeah if he actually used an open account check, that he could write and pay it, when the bank gets it the bank cancels the check.  That’s why the debts never get paid.  But when he uses on his closed account it goes right straight to treasury.  That renders it zero.  So what comes back from the Treasury isn’t something the treasury sends to anybody it’s just here that the bank knows that the exemption now is in the hands and is owned here by him.  So they have to cooperate with him to get the exemption to make their bank paper stick.

** Okay so he should be also asking for the 1099 OID.

R: Yeah, I think so.  The 1099 OID… My copy of the 1099 OID that covers this matter.  But you see he needs to take and write on the top of that instrument somewhere:  “I did not find your check enclosed.”

** Good!  Okay.  Perfect.  Another little quick thought.  I was thinking of you with this when we met last year and you were explaining how to weigh heat.  Well I just got an email explaining that there is no cold, it is just the absence of heat and there is not dark it is just the absence of light.   This is sort of like them proving the first sale to proving there is cold or dark.  It is the absence of something that displaces their presumption.

R: Well that instrument that he got there, he needs to send that back to them and tell them that he did not find their check enclosed.

** Since he doesn’t have a closed account because probation forbids him to have more than one checking account, can he just accept this and write on it making it a documentary draft?  Like accept and return their offer?

R: He could draw down on the account he has but what he needs to do is draw it down to zero first and then write this as an overdraft on it.  Because the closed check goes right to the treasury and what comes back from the treasury is the exemption and see some of the bankers and sensitive places don’t even dare to talk about it.  You mention to them “You now have the exemption..” Click goes the phone!

** Yeah.  I just got another thing from the Franchise Tax Board and now they have broke it all down and sent me 6 or 7 letters with different years.  First they assessed with a total.  Now they have separated each year.  I’ve sent them 2 checks now from the closed account and have also sent to the Secretary of State of the Providing Information.

R: What you ought to do too.  You might want to write back to them and ask them for an accounting to show the disposition of what they have done with the tax exemption from the treasury.

** Okay good.  I’ve already accepted their dishonors from both times they have sent me letters telling me the bank did not pay on the account.

R: Ask them what they have done with the exemption and that I want a statement of account and 1099 that show the posting of those particular items.  You don’t have to warn them now but if they don’t then they could fall under a federal audit.

** Good.  See there is no names on there.  Oh another thing, K* has paid the property taxes on that building he was evicted from.  Now he is getting a list of the tenants to give them new contracts of where to pay the rent, with the discount of course.

R: Okay now where is he at on the taxes.  Did he pay for the whole year?

** No remember when we talked to last time he could only pay half the tax bill because the other had already been paid.

R: What did he pay with?

** His private account.  It was something like $58,000.00 for the 2nd installment.

R: Awe… is that the tax itself?

** Yes.  See it is 208 unit apt building.  The building is valued at somewhere around 20 million.  I’m sure they are paying them bi-annually.  They have already paid the first installment so they are going to be surprised when they find out the taxes are already paid when they send the check in by April 10th.  Chuckles.

R: Did they tell him this was the 2nd installment?

** No they just gave him the bill for what was due and it happens to be the 2nd installment.

R: Oh… okay.  But you see he needs to get in there and get that 2nd half.

** Okay.  Well they only gave him a bill for the 2nd half so he needs to go pay the full amount?  That brings me something else that happened.  Somebody in Riverside paid the taxes and apparently paid too much and got a check back from them.  I told him not to cash it was that correct?

R: No he shouldn’t.

** Okay another thing, I was looking on the internet and it said that if the checks that the county issues are not cashed within 12 months they are void or cancelled.

R: Well in that case what you want to do is use them checks when you want to pay some other taxes again.

** Good.  Then just use there checks back to them.  Okay.

R: Did that check he got, was that from the US Treasury or from the County?

** County

R: See because you can defeat traffic tickets that way too.  You over pay and then when they give you the refund, you don’t cash the refund.

** Oh, K* got a check from the bank for $1.50. when he was told he had a big overdraft at the bank when he put my check in there and they showed it was for eight-hundred something thousand when my check was only 24,000.  He doesn’t know why the $1.50 cause it has ….

R: Well they used that account and somebody else may have stuck some strange amount in there like if they entered 501.50 when it was suppose to be 500 and to balance the account they needed to issue $1.50 check back to him.  That bookkeeping is just going through there on charged software would be the only way that could be tracked down.

** The statement with that bookkeeping was totally strange to him.

R: Yeah that bookkeeping is just going through on positive and negative.  That would just be binary numbers they would use because that’s what the computers are set up with.   There would only be two places they would look.  But each time they place they’d have to see where they tried to skate around the observation of the accountants.

** Interesting!   I was listening to the radio yesterday and this guy John of Syracuse who is an accountant and calls in to the radio station that I listen to and he was talking about Enron and said the only ones that would go to jail on this situation are the accountants.   So they are going to blame it all on the bookkeeping.  I thought isn’t this just typical… there is no crime it is just wrong accounting and they will pay the price.

R: Well those accountants should have kept them in line.  They were the ones that were told to do it.

** That’s why they’re going to go down!

R: Yeah

** Today they are all taking the 5th amendment but next week they’ll all be pointing the finger at each other to save their own freedom…

R: chuckling… yeah   When K* addresses this thing… I know some people who went down and they pre-paid some taxes.

** Right!  He pre-paid for when he got the bill.  He pre-paid whatever was there.  It turned out that it was the one due by April 10th and that would be the 2nd installment.  California fiscal year for property taxes is from July 1st to June 30th.

R: Oh.

** When people pay the whole tax bill they would do it by Dec 10th.   So they can use the whole thing for taxes.

R: What he ought to do is he needs to check and see whether it was paid by a fiction or an individual.  If it was paid by a fiction then I would tell them then I want to or I’m going to pre-pay the item.  Cause you see the fiction, all that is, is a transfer and that is not payment and that’s what I would inform them.  He could say, “I want to see who paid this and if it was a transfer then you’re going to have to take my check.  That’s not payment because it will cancel the payment.”

** Okay cause what we were thinking also, you know when people have to mail their checks in versus when they take them in and get a counter receipt, that check when it comes back and says “The Account Closed” or Non Sufficient Funds or whatever which they will come back doing, that will actually be the receipt.   But what some people are saying is that they just ignore the checks and never get back to you and you have no receipt or recourse.

R: Well see they grab it and not charge the account.

** Right they run it through one of these little machines and report that the check …

R: When they run it through the machine, then it’s finished.  They can’t undo the machines showing that the accounts closed.  That means that they have charged that check from there.  They have to charge that machine to operate.

** Well sometimes they do that, like lets say the point of sale.

R: Oh yeah well see it may never go through the bank.

** What about when they run the checks through at the point of sale does that take it out of your account at that moment?

R: No it never does.

** Even if it’s an open account?

R: Well if it’s an open account it just shows the numbers and it just reduces it at the other end.  You see all it does is a transfer.   They transfer the debt elsewhere.

** Oh right!  They just do bookkeeping entries…

R: Yeah.  But when you use one of the private checks, and that machine picks it up and they can say, “Well the account’s closed”, it is already too late for them.  Because the number had to go up against the account so they couldn’t cancel the number.  Cause it went to zero.  So now you see some corporate books somewhere have got that much out of their books and we want the bookkeeping and if there’s ever an audit conducted they’ll pick it up.

** Oh okay.  So we want to get bookkeeping off of it.

R: We want to hammer on them hard.  Maybe what we ought to do… somebody maybe ought to commence an action against them.  Against the County and go down and file it in the U.S. Court.  Just call it a civil matter and a Federal question.  Let them know they are going to get litigated if they continue to obstruct it.

** So that would take it all public?

R: Sure.  The thing about it is … they don’t like this exposure because too many people can read why you’re doing the things you’re doing.

** Right.  So they don’t want it to go public?

R: They like it to stay hidden in the little room.   I know once we keep these things up… you know I cut my credit cards up a year or more ago and sent them back.  See I’ve had a running battle going with a lot of them.  They just keep trying to re-affirm their position and finally I simple wrote, and Sears was one of them, and the reason I picked Sears out to get nasty with, is because one time I had some product ordered was because a lady called me and said, “ I’ll mark it ‘no cost’ and ship it out right now”.  Well they never did it.  So you see, some of this area, Sears couldn’t understand why I was taking the position that I was.   I just simply wrote to them and told them to close the account and I got pretty short with them.  I didn’t get any long winded explanations or anything.  Finally I got a guy on the… oh after I had told them to close the account and that did not mean CANCEL.  Closing means I want closure and they are finally coming out.  They were thinking they were getting by with cancellation.  I said, “Oh no!  You guys, I’ll tell you what you’ve done.  When you come back and tell me there is an outstanding balance, that tells me that there is a deficiency in your office because I told you people to close this account… that means there better be a zero balance and if there isn’t then you are either trying to get paid twice and/or you are taking the exemption that’s coming back from the Treasury and that’s fraud!”    I said, “Buddy you guys are going to settle this or else.”  He said, “Well that’s what I’ve been given to do.”  He said, “Thank you for telling me.” And he apologized all the way around and he said, “I’ll take this to whoever it was he needed to take it to.

** Was he a collector or accountant?

R: Yeah

** Okay well I’m getting letters and phone calls from these collection agencies that say or maybe they are attorneys.  They try to intimidate you with threats of lawsuits.  I just tell them, “Next time you call I want a list of all your assets.  This account is closed and if I need to take the remedy out of your personal assets that is where I’ll go.”

R: Well the thing is, I once had a Sheriff’s deputy come out and serve me with some papers from Discover card.  I said to him, “Well it looks like they’re finally getting a competent collector on this thing.”  See cause I know the collection goes against the creditor.

** Oh did that go away when you got served those papers?

R: Oh yeah, oh yeah!

** What did you do with that?  You were going to hold him and give him something right then.

R: I did.  After he started to drive away I hollered at him as he was leaving and said, “I’ve got to get you’re name I might have to make my return right through you.”

** Oh that’s right… now I remember.

R: So he stopped and I started to write his name down and he reached in his pocket and handed me a business card with the badge showing on it.   So I took that and told him, “It is about time they got a competent collector on this.  You guys are competent collectors aren’t you?”  He laughed and said, “yeah, just be sure you answer it in time.”  Because it’s a summary process.  That’s military and that’s summary court marshal.

** Have you talked to G*P* lately?  He has something he is doing and it looks more like common law then redemption.  It has something to do with the Postmaster being the real clerk of court and you write an affidavit and have it stamped by the postmaster.  I think he is following some other process that a friend of his is using.  His friend of his won a couple of cases in court with this common law process so he is taking that path cause he thinks that’s the answer.

R: Yeah you can probably go to court and even get judgments, but I can get a judgment.  I can just write to somebody and say, “I want you to pay me this much in this many days and if you don’t then I’ll accept your dishonor.”   That is a judgment.   They’re just going about it the hard way.  They’ve got to have somebody else tell them that they’ve got a judgment.  So here we are again, we are using that check to hog tie the witness of the bank that there is no money….

** Right.

R: And that means that we are eligible for the request for delivery of the property. PERIOD!  And you see when we ask them to deliver the property we’re taking them into involuntary bankruptcy on the alternative contract of their involuntary dishonor.

** So he needs to really right on this paper --  I got your offer but didn’t find your check enclosed.  This request is a certificate of origin, nontransferable and to provide the product of your offer. Right?

R: Well not “provide” but “deliver” the product of the offer immediately.

** Okay.  In exchange for settlement.  He doesn’t even know what the product is… he doesn’t even know why they are sending him this bill.

R: Well the product is the property that was created with the debts that they used his name for.  That’s something he doesn’t know.  But when he tells them the product, I think later on see how this goes, then later on he can do a discovery of all the items which are his personal property and at that particular point they are also property of the corporate treasury.  Because if your going to mark treasury property, see the treasury can only operate for the principal and you being the principal.

** Oh, okay.

R: You can’t be the holder of the account, but somebody is in possession of the property, which is contraband, unless it has the permission of the owner, which is him at this point.

** Okay.

R: He might want to write and spell some of that out.

** Right.  I can help him put a letter together of acceptance.   I’m not sure if he’ll be courageous enough to do this but I can make him aware of it.  It really has to be his choice.

R: Well if he’s circum to fear than he’s not going to get anywhere.   Then he is going to have to work within the system.

** Okay!  I’ll pass this on and see if I can help him and if he even wants to be helped but I appreciate you once again for being there.

R: Okay… oh before you go we have a guy up here that went and paid the taxes up here on an implement dealer.  And this implement dealer has been one that takes all these assignments from these big companies that take property and machinery away from people…

** humhum

R: Well these are the guys that launder it all.  And this guy is an Auctioneer as well as a member of a farm implement business too.  I think we just walked into this.  I don’t know when this is going to take effect cause they were still holding the auction.  I was just thinking I don’t know if they ever get notice of what’s happened.

** Oh there is a guy here.  I just love these people with accents or foreigners because they get away with more because they think they’ve misunderstood wrong.  Anyway this guy is a very good student of this and had leased a car for several years.  Well at the end of the lease for the buy out he sent them a private check and got the pink slip then shortly there after before he had a chance to go make the changes at the DMV they came an repossessed the car.  The car was worth $14,000 and he only owed about $2,500.  They took the car from Riverside and brought it all the way up to the Marina which is approximately 75 or 80 miles.  He told them, “You deliver my car back to where you took it from.”  They gave him a bad time so he went to file a police report and the police wouldn’t do anything because they said that was private contract.   This is something you have to work out.  We don’t know what to do to get his car back.

R: What he wants to do is to tell them that the property that they’ve taken also has a United States Treasury Exemption and that there is an exempt item that they have and if they fail to put this back… deliver this back to his possession immediately then they’ve got a double entry that they’ve got to answer not only to the Franchise Tax Board but to the Internal Revenue Service for the delinquent tax.  That exemption is only available to them if he has possession of the vehicle.  So that’s what he needs to do is he needs to write and tell them, and also send a copy of the letter to the regional Internal Revenue Service and to the Franchise Tax Board.

** Okay.  He’s also sent one to the Secretary of State.  Now the Secretary of State is running for Governor here and he has not complied with any of our requests and we are sending him notice and that he has dishonored us and is not eligible for office.

R: Good.

** R* has been doing this from jail and they are still holding him in spite of all the correspondence and providing of information that he has done.

R: Well you can put this information in the hands of his opponents if he doesn’t start responding.

** We are going to have to get a little more aggressive if we don’t start getting better responses.

R: Oh yeah.  It’s going to be an interesting year.

** I know I’m so glad there are more and more people getting interested.  For awhile I thought everyone headed for the fence when people were going to jail, but once you know the truth it’s pretty hard to try to live the lie even if you are in a risk position.

R: Well this is why I wanted to kindle your thinking on this thing here of K*’s cause he is in there on ½ of these taxes and he needs to pay for the whole year.  That puts him at basically holding in common …

** Right you did say that before…

R: They’re only assuming one side of it and maybe what he’s got is enough… Because they can only assume the other side and that I don’t believe can over shadow what he’s got.  Maybe they can’t hold it common.  It might be enough!

** Well they’d have to expose themselves and I don’t think they’ll do that.

R: Yeah.  Because he’s got the superior hold.

** We talked about that with the little Levin levins the whole lump….

R: Watch out for the Levin of the Pharisees’.  The Pharisees are the upper house…

** Aren’t the Sadducees the ones that are dead?

R: Yeah they are ones below zero… they are underground.  See when Christ was stretched across on the cross.  That’s what it takes is a real person that travels from right to left and left to right through a real body.  That’s why it’s portrayed that way.  Not only that it is also vertical.  From the upper and lower house as well as from side to side.  The Pharisees the upper house and the Sadducees the lower house.

** Okay that’s also the High Priest for vertical for no time or interest and the Chief Priest is horizontal where there is time and interest.

R: Well the Chief Priest is horizontal… yeah.  And the High Priest is all principal.  But you see when the High Priest act you take all principal and interest are now summed up in the vertical integration to make zero.  But see it has to go through a real body.  The Sadducee has to balance with the Pharisee.  The Sadducees are the undertakers.

** or the underwriters.

R: And the High Priest zeros it out.  But they sum up and then the interest is absorbed into the principal.  Time and interest is the same… it runs horizontal.  There is no time you see on the vertical.  It’s the same on the top as it is on the bottom.

** Okay… gosh once again I’ve kept you longer than I intended but appreciate you a bunch and will pass this on.
End….