RedMD_Blog Part 2-Update (2)

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Dear Red MD Listeners and Readers: Mr. Matthew Boyle, of the Daily Caller [dailycaller.com], and myself, Jeffrey Prosser, former owner of Innovative Communication Corporation (“ICC”), have recently been hosted by Greg and Brian on their Thursday night podcasts. We have provided certain details of the ongoing bribery and scandal involving the Department of Justice (“DOJ”), National Rural Utilities Cooperative Finance Corporation (“CFC”), Rural Telephone Finance Cooperative (“RTFC”) and Governor John P. deJongh, Jr. (“Gov. deJongh”) of the U.S. Virgin Islands. In my first blog on this story, I detailed a “skimming operation” whereby CFC was illegally transferring profits from RTFC earned by and belonging to RTFC and its rural telephone borrowers. This is the rest of the story, as it relates to the DOJ, Governor deJongh and the control and influence of CFC and RTFC (collectively, “CFC/RTFC”). Destroy Prosser For the past five years, CFC/RTFC has made every effort to stop me from bringing public awareness to its illegal “skimming operation” by trying to destroy me and my family -- mentally, morally and financially. Through bankruptcy proceedings under the auspices of the Bankruptcy Court, CFC/RTFC and its cohorts relentlessly tried to incriminate me, and bring me down. CFC/RTFC is the largest and only secured creditor in the Innovative Communication Corporation (“ICC”) bankruptcy. CFC/RTFC had a first lien on all ICC assets but couldn’t obtain a judgment in Federal Court because they had materially altered the loan documents. ( CFC/RTFC internal Counsel Frank Vaughn admitted this in a deposition) Greenlight Captial LLC had a judgment from a Delaware court but had no assets to collect from. Consequently CFC/RTFC and Greenlight Capital LLC joined forces by signing an inter-creditor agreement to force us into involuntary bankruptcy ( CFC/RTFC are partners in all actions ( legal or illegal ) taken by CFC/RTFC who purchased claims from Greenlight along with other commitments in Inter-creditor agreement ))Therefore, it was in a position to effectively choose the trustees, lawyers and consultants in the bankruptcy proceedings and therefore effectively control them. Their chosen cast of characters – CFC/RTFC’s cohorts – includes the following: 1. Stan Springel – Chapter 11 Trustee over ICC. He is a Managing Director of Alvarez and Marsal (“A&M”). This is his FIRST time ever serving as a Trustee for a bankruptcy estate. ( To learn on a BILLION DOLLAR ESTATE ) 2. A&M – selected by Trustee Springel to perform all management and accounting functions. Judge Fitzgerald approved A&M’s retention despite the obvious conflict. A&M has charged more than $30 Million in fees in the bankruptcy proceedings. 3. Vinson & Elkins (“V&E”) – lawyers for the Chapter 11 Trustee. You may recall V&E was also ENRON’s legal firm. V&E has charged more than $40 Million in fees in the bankruptcy proceedings. 4. James Carroll – Chapter 7 Trustee in my personal bankruptcy. FIRST time ever serving as Trustee in bankruptcy estate Closely tied to Greenlight Capital, LLC ( Through Skadden Arps and partner Greg Gillardi ) 5. Fox Rothschild – lawyers for the Chapter 7 Trustee. 6. Darryl Dodson and Rick Hunter – lawyers in the Virgin Islands for CFC/RTFC who signed and took responsibility for all of CFC/RTFC filings, whether truthful or not. Not only did CFC /RTFC rule over this cadre of cohorts to do its bidding, it had the assistance of the Bankruptcy Court, presided over by Judge Judith K Fitzgerald, who has made every effort to protect and to facilitate their efforts in order to incriminate and destroy me. During the course of the years’ long

bankruptcy proceedings, Judge Fitzgerald did nothing but protect CFC/RTFC’s cohorts she approved to administer the bankruptcy proceedings, and did everything to rubber-stamp approval of more than $70 Million in fees they charged to the bankruptcy estates. These are the same parties who destroyed over $900 Million in gross value of ICC under Judge Fitzgerald’s watch. Judge Fitzgerald’s protective measures went so far as to her actually sitting in on the deposition of a key witness to insure he was protected, because he was a key witness she relied upon in an opinion against me. I know of no other case like this in which a Federal judge literally sat through a deposition to protect the witness. Judge Fitzgerald’s opinion against me, by the way, was recently struck down on appeal to the Federal District Court. CFC/RTFC and its cohorts’ efforts to destroy me through the bankruptcy proceedings began to unravel in January 2010. I In a deposition, attended by Judge Fitzgerald of a material witness who had previously testified against me, it was discovered that several of CFC/RTFC’s cohorts were involved in paying the legal fees of the material witness. This witness was specifically used to discredit and incriminate me. The witness admitted that in exchange for the payments, he was to testify for them. Paying these legal fees constituted payment to the witness, and in effect, a bribe (“Witness Bribery Scheme”). The parties directly involved in the payments were a. b. c. d. Stan Springel, the Chapter 11Trustee, Byron Smyl of A&M, Dan Stewart of V&E, and Toby Gerber of F&J.

CFC/RTFC and its cohorts knew or should have known these illegal payments were being made. Upon discovery of the Witness Bribery Scheme, I immediately filed a complaint against the following parties alleging certain acts, including the Witness Bribery Scheme that I believed were criminal: 1. 2. 3. 4. 5. 6. Stan Springel, the Chapter 11 Trustee; A&M and its Managing Director Byron Smyl; V&E and its partners James Lee and Dan Stewart; James Carroll, the Chapter 7 Trustee; Fox Rothschild and its partner Yann Geron; and Fulbright and Jaworski (F&J) and its partner Toby Gerber (F&J are the lawyers for CFC/RTFC; Gerber is the wizard behind the curtain who has been directing all parties throughout these past five years).

As a result of my complaint, which sought a referral for investigation and immediate removal of these parties, the Federal District Court ordered Judge Fitzgerald (the same Judge I filed a Criminal Complaint against with the Public Integrity section of DOJ) to conducted an evidentiary hearing into the matter. Much to her chagrin and even before full discovery had commenced, Judge Fitzgerald referred the complaint to the U.S. Attorney in St. Thomas for investigation. An evidentiary hearing on the Witness Bribery Scheme was ultimately held in May 2010. But despite the overwhelming evidence of misconduct and admissions made by violating parties, CFC/RTFC’s cohorts have never been removed from the bankruptcy proceedings and continue to operate unabated and with impunity under the auspices of the Bankruptcy Court and the presiding Judge Fitzgerald.

Not inconsequential, the material witness paid in the Witness Bribery Scheme and who was so important to be protected, even by Judge Fitzgerald for the sake of her decision (but now vacated) rendered against me, has been shown of have performed the following illegal acts: a. Stealing a computer hard drive from Mrs. Prosser’s computer located in her Florida home. Mrs. Prosser was out of the state at the time. b. Delivering the stolen hard drive to James Lee of V&E, the Chapter 11 Trustee’s lawyers in Dallas who are located in the same office building where F&J, CFC/RTFC’s lawyers are located. V&E’s IT person then accessed the stolen hard drive and looked at the files and even opened some of them. The stolen hard drive contained attorney client material looked at by V&E. c. Stealing my financial records and faxing them from his home fax to James Lee at V&E. Mr. Lee and Yann Geron from Fox Rothschild then altered the documents for filing in Bankruptcy Court. Mr. Lee and Mr. Geron left the witness’s fax number on three pages out of a hundred which were then filed in Bankruptcy Court by Fox Rothschild and its partner Yann Geron. Governor deJongh’s Complicity As you may recall from Mr. Boyle’s article, the Governor of the Virgin Islands, John deJongh, was allegedly paid a portion of $20 Million in bribes. Why would this come about? Let me explain. As a secured creditor of ICC, CFC/RTFC placed a credit bid to acquire certain assets held in the ICC bankruptcy estate including the wireline telephone and cable TV companies in the U.S. Virgin Islands. However, in order to consummate the acquisition, CFC/RTFC needed approval from the Virgin Islands Public Service Commission (“PSC”). The PSC has authority over public utilities and therefore regulates the transfer of public utilities, as well as the rates charged to customers. Since Governor deJongh appoints the members of the PSC, CFC/RTFC understood he was critical, if not invaluable, to getting the PSC approval to transfer ownership of the public utilities CFC/RTFC sought to acquire. CFC/RTFC knew getting access to Governor deJongh was essential, and had hired a local Virgin Island resident, Roosevelt David, as a consultant. Mr. David just happened to be EXTREMELY CLOSE to Governor deJongh. Upon CFC/RTFC HIRING AND PAYING MR. DAVID, the following occurred: 1. Overnight, the Governor instructed the V.I. Attorney General, Victor Frasier (alleged to be another of the Government officials sharing in the $20 Million in bribes) to fire PSC outside counsel, Jeffrey Moorhead, and put the AG office in as the lawyer representing the PSC. 2. The next day the AG contacted Judge Fitzgerald to put the Bankruptcy Court on notice that the PSC would move forward expeditiously to approve the sale. 3. All concerns that the PSC and its consultants had expressed in public hearings and documents, were ignored by the Governor and his representative -- the AG. 4. In addition to approving the sale to CFC/RTFC, the PSC also approved a four-year rate freeze that allowed CFC/RTFC to cut expenses (payroll is the major expense of a wireline telephone company) and yet freeze rates where they were. CFC/RTFC was required not to fire employees for only one year (since that year is now over, they have fired over 75 employees thus far).

5. CFC/RTFC needed the rate-freeze agreement to justify the fraudulently high value they had recorded their loan/investment in ICC in their public filings and audited financial statements. Recall from my first blog that at the same time they were telling the Bankruptcy Court that the value of ICC was zero they were recording the value on its financials at over $ 500 Million. 6. The Governor then became involved in assisting all parties in their efforts to convince the DOJ to bring criminal charges against me. We know this happened because of documents that had to be produced by the parties during lawsuits. These documents included, not limited to the following: a. E-mail string between the following – Adam Christian (Governor’s Counsel at the time who is now is a Superior Court (Territorial) Judge), Stan Springel, Dan Stewart, Victor Frasier (AG), Byron Smyl and Toby Gerber. Dan Stewart forwarded the e-mail. b. The e-mail string dealt with potential involvement by VI AG (Victor Frasier) in bringing some criminal complaint against me and also in assisting in the set-up of meetings with the DOJ and FBI officials in the USVI. 7. Just two months ago, my wife and I filed criminal charges against Charles Antin (a wine expert from Christies Auction House in NY) for unplugging a cooling unit in a wine storage room on our property. Had it not been discovered quickly, all the wine in the room would have been destroyed. As a result of filing those criminal charges the following ensued: a. A criminal investigation was begun by local V.I. law enforcement authorities. However, an FBI agent, Agent Ronald Ryniack, for some unknown reason, started meeting with local law enforcement officials to strong arm them into dropping the case. Agent Ryniack -- in my opinion -- had been compromised earlier this past year in an interview on another matter related to me. b. CFC/RTFC and Fox Rothschild called in political favors and the VI AG (Victor Frasier) along with V.I. Police Commissioner White successfully killed the investigation. They were simply following Governor deJongh’s orders. c. A month after they killed the investigation, Charles Antin, the Christies’ wine expert, in a deposition -- admitted he instructed that the cooling unit in the wine storage room be unplugged because he felt “green” that day. Of course the Chapter 7 Trustee and his lawyer Yann Geron have asserted that they had nothing to do with it. Mr. Antin had no fear in making this statement under oath because he and others already knew that Judge Fitzgerald would do NOTHING. d. Christies, after falling on their sword for my adversaries, has not faced one question from the Chapter 7 Trustee or Judge Fitzgerald to explain Mr. Antin’s actions. Instead they have been rewarded with millions of dollars in sales of art and antique from my wife’s assets. And of course these sales have all been approved by none other – you guessed it – Judge Fitzgerald. In the end, if this had not been my family and my life for the past five years, I would not believe this could happen in the United States. I am here to tell you that it has happened. Each day that passes with the DOJ not moving on the indictments they have in hand to stop CFC/RTFC and its cohorts, more destruction continues to happen to me and my family. With a vengeance, Judge Fitzgerald continues on her mission to wipe me out before the indictments are made public . There is no way to explain her actions against me other than she has been COMPROMISED.

Despite a concerted effort by CFC/RTFC and its cohorts to do so under the cover of Judge Fitzgerald, after more than four years, no criminal charges have been filed against me.

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