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From: ajteel@dendrite.cs.Colorado.EDU (A.J. Teel)
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Subject: IRS Suffers major defeat!
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Message-ID: <1993Apr1.154516.20329@colorado.edu>
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Organization: Universtiy of Coloardo, Boulder
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Date: Thu, 1 Apr 1993 15:45:16 GMT
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Lines: 457
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Hello All:
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Here is a definitive anti-tax package. This article proves many
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recently contested (on Internet) contentions regarding the legality of
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the income tax. There is no statute in the IRC that states that one
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is liable to file a return or liable to pay tax. It is a VOLUNTARY
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system. Thanks to certain naysayers who have attempted to get my Internet
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access suspended, I cannot post the last few lines of the article as
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they might be considered an "ad" as the article mentions where and for how
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much this package may be obtained. I will be happy to email it to anyone
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who is interested. This is HOT STUFF especially with april 15 approaching
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fast. Very informative and to the point. I have spoken with the group
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by phone as well as others who have used this technology. It is bullet-
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proof. Enjoy!
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With Explicit Reservation Of All Rights (U.C.C. 1-207)
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Regards, -A. J. Teel-, Sui Juris (ajteel@dendrite.cs.Colorado.EDU)
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[START OF DOCUMENT: hawaii.txt.lis ]
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FOR IMMEDIATE PRESS RELEASE:
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The IRS suffers a major defeat in Hawaii.
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On Wednesday August 8th, 1992 a Federal Jury acquitted Royal Lamarr
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Hardy and Mike Harada of a seven count indictment which consisted of
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conspiracy to launder drug money and structuring currency transactions to
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avoid income reporting requirements.
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This acquittal is a major victory for the entire "Patriot Movement,"
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and a serious blow to the I.R.S. who tried to frame Lamarr Hardy into this
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hideous money laundering scheme (Danny Hashimotoi, National Commodity and
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Barter Association, NCBA, Director for Hawaii).
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Alexander Silvert, Hardy's Federal Public Defender, said that the
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evidence in this case showed that the I.R.S. created the crime, supplied
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the means to commit the crime, and even laundered the money themselves, and
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by insistence and strong handed persuasion tried to induce Mr. Hardy to
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become involved in this crime simply to be able to charge Mr. Hardy with a
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hideous crime that the I.R.S. knew he had never committed in the past, nor
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would he ever commit in the future if it wasn't for the government agents
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pushing Hardy into the criminal actions.
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The jury in this case made a tough decision. It was a tough case but
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the jury saw the truth and set Mr. Hardy free on all counts. This is a
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major loss for the I.R.S. and it will send shock waves clear back to
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Washington to let them know individuals will not tolerate this kind of
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action by the government or government representatives.
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Historical background.
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Lamarr Hardy is the Executive Director and Co_Founder of "Corner
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Stones to Freedom", and Unincorporated Research Foundation. Hardy is best
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known in the "Patriot Movement" for the development of the "Reliance
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Defense." His program became so successful that the I.R.S., according to
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court documents, gave Hardy the coveted title of "one of the most dangerous
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tax protesters in the country." Over 4,000 people are already building
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their personal foundations. Is it any wonder that the I.R.S. considers
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Hardy's "Reliance Defense" program as extremely dangerous to their
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survival!
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The "Reliance Defense", or Personal Foundation as Hardy calls it, is
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based upon negating the "willfulness" portion in a 7203 "willful failure to
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file" charge. The key in this case is if there's no evidence of
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willfulness, there can be no criminal conviction. To accomplish this the
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Research Foundation assists its members to acquire competent legal advice
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on income tax issues. Over the last twelve years Hardy has built one of the
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most powerful personal legal foundations ever put together in the Patriot
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Movement.
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In 1985 it was the prestigious Barrister Inn of Boise, Idaho who
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first recognized this advanced technology. Later that year they published a
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front page article in the October "Alert" newspaper entitled "Willful
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Failure to File" is dead. The article went into depth to explain about the
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"reliance Defense" technology and how important this strategy was for
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certain types of individuals who choose not to file income tax returns.
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Quoting from paragraph 11, they said "every patriot has to know that
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intent is an element of the offense, but in the majority of cases patriots
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have been unable to make use of that knowledge as a matter of law to
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convince a jury. In the past, patriots have relief on their own knowledge
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as a basis for their arguments---only to lose.
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However, utilizing the "Reliance Defense" technology and not filing
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because you sought and received sound legal professional advice is entirely
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another matter., No one in the case of statutes requiring specific
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performance can be held criminally liable because of legal advice provided
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by counsel.
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John Voss, Head of the NCBA, wrote to Hardy in 1989 and told him, "I
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consider your position letters to the I.R.S. to be one of the best and most
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comprehensive that I've seen to date! It is further strong testimony to
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your continued research and commitment to education of all concerned." John
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Voss used this same technology in his own "willful failure to file" case
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and he was found not guilty on all counts in his case largely because of
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using this strategy.
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Bob Minarik, club leader of Patriots for Liberty, recommended to his
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members to explore setting up their own "Reliance Defense." In their
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November 1989 newsletter, Minarik said, "Lamarr Hardy has developed
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position letters and a defense that is excellent in quality, superbly
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researched, and well documented. In my opinion, the strength of his
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strategy is that he establishes his position on the professional advice of
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experts in the fields of tax law, and then shifts the burden of proof back
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to the I.R.S. Further, our research confirmed his findings."
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Martin Larson of the "Spotlight" also wrote an article in the
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November 1989 issue about Hardy and his "Reliance Defense." He said,
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"Lamarr Hardy of Honolulu, Hawaii has carried his research further than
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anyone else I know of." Is it any wonder after all this that the I.R.S.
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considered Mr. Hardy one of the "most dangerous" tax protesters, "the most
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dangerous to them!"
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For 10 years the Criminal Investigations Divisions (C.I.D.) of the
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I.R.S. was unable to find a crack in Mr. Hardy's "Reliance Defense"
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program. Then in 1987 the I.R.S. and the U.S. Attorney's office launched a
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massive Grand Jury investigation into Hardy's activities which after two
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full years resulted, interestingly, in no indictments.
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At this point the I.R.S. was exasperated, so early in 1990 the local
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I.R.S. office obtained permission from the Justice Department to set up a
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"STING OPERATION" on Mr. Hardy, The I.R.S. brought in Special Agent Ralph
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Jacoby to be the #1 drug money laundering specialist to come to Hawaii and
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take Mr. Hardy out.
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I. PROCEDURAL HISTORY.
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ROYAL LAMARR HARDY was arrested on August 16, 1990, and released on
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bail. He was arraigned on an Indictment on September 28, 1990. On December
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7, 1990, Hardy was Re-indicted and Arraigned on a new seven-count
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Superseding Indictment which was pending before the court and was set for
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trial on August 18, 1992.
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On January 18, 1991, Hardy filed a motion to have all the charges
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against him dismissed based upon outrageous government conduct. Oral
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arguments and hearings of evidence were held on this motion on March 18th
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and 19th, and April 10th and 11th of 91. On August 2, 1992, the Court
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issued a written order denying this motion.
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Meanwhile, the court granted Hardy's motion to continue the trial
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based upon the fact that the case of Jacobson v United States, Federal
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Public Defender Alexander Silvert, counsel for Hardy ordered transcripts of
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all pertinent hearings bearing on the issue of outrageous government
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conduct. Having received this material, Hardy respectfully asked the court
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again to reconsider its previous order denying Hardy's motion to dismiss
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the charges pending against Hardy. Again, the court issued a written order
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denying Hardy's motion.
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II FACTS OF THE CASE.
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The testimony and facts introduced in the case demonstrated that
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prior to the "sting operation," the I.R.S. had labeled Hardy one of the
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most dangerous tax protesters of the country due to his prominent role as
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the main leader of the tax protester movement in Hawaii. {Stip.#1. Stip. #
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refers to the numbered stipulation of fact reached by the parties which was
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lodged with the Court on April 2, 1991, and which is attached as Exhibit B.
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"Tr." refers to the transcript of the various hearings held on this motion
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by date.} There had been I.R.S./C.I.D. investigations since 1981 and formal
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grand jury proceedings into Hardy's "tax activities" since 1988. {Stip. #2.
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The court granted, over defense objection, the government's request to seal
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all the government papers which authorized the "sting operation" on the
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basis that they did not constitute Brady material. However, independent of
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the Brady issue, these materials are material and relevant to a
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determination of the issue pending before the court and thus should have
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been unsealed and made part of this record}. This information was
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specifically mentioned in the papers filed by the local I.R.S. office to
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their Washington office in order to gain approval to conduct the "sting
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operation." {Tr. 4/10/91 at p. 60} Prior to conducting the "sting
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operation" which was directed specifically against Hardy, the I.R.S. had no
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information whatsoever that Hardy had ever laundered "drug monies." {Stip.
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#11; Tr. 4/10/91 at pp. 60-61} In fact the very idea Hardy would be
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targeted for a "sting" involving "drug money" was entirely made up and
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designed by Special Agent Ralph Jacoby (an I.R.S./C.I.D. Sting Specialist)
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just so the "crime" would fit under the more severe umbrella of the 18
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U.S.C. (1956). {Tr. 4/10/91 at p. 64}
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The only information the government possessed about Hardy being
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involved in simple "money laundering" was in Count 5 of the indictment.
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However, this allegation was dismissed as a matter of law by Judge Pence on
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March 19, 1991. {Tr. 4/10/91 at pp. 61-62}
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The government claims and contends anyone involved in the "tax
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protester" movement is per se guilty of "money laundering", but there was
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no evidence provided to support this "argument, other than what was
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contained in Count 5. Based upon the above information the I.R.S. launched
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this hideous "sting" operation against Hardy in March of 1990 and brought
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in the #1 I.R.S./C.I.D. Special Agent (Ralph Jacoby), who had 45 "stings"
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to his credit, from California to implement and run the operation.
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The evidence is clear at least two undercover I.R.S./C.I.D. agents
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initiated contact with Hardy by phone on a number of occasions in April and
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May of 1990. {Stip.#3; Tr. 4/10/91 at pp.49-50} The agents continued to
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make a number of phone contacts with Hardy until Hardy finally agreed to a
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meeting on May 3, 1991. It was a direct result of the insistence of the
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I.R.S./C.I.D. undercover agents that the May 3rd meeting was held. {Stip.
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$5}
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The evidence shows Hardy was never informed prior to May 3, 1991, of
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any illegal purpose for the meeting. {Tr. 4/10/91 at p. 52} At this
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meeting, it was the I.R.S./C.I.D. agents who initiated the discussion abut
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the possibility of "laundering money." It was the undercover I.R.S./C.I.D.
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agents who wanted to "launder the money" by utilizing cashiers' checks and
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not by any other means!
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Hardy of course refused! {Stip. #7; Tr. 4/10/92 at p.88} Finally,
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Special Agent Jacoby admitted that at this meeting, and every other meeting
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when the issue of payment for Hardy's alleged service was mentioned, it was
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always the agent's who brought it up, not Hardy.
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Court hearing:
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Special agent Jacoby: "I believe there was conversation
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about remuneration for services, yes."
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Federal Public Defender Alexander Silvert: "And weren't those
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conver-
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sations always, in every instance, begun by you?"
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Special Agent Jacoby: "Probably in all likelihood, yes." {Tr.
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4/10/92 at p. 48}
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Special Agent Jacoby's testimony demonstrated that Hardy
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consistently
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rejected all offers of payment until finally, in an unrecorded
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conversation, Agent Jacoby threw money down on Hardy's desk and strongly
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suggested he take it! Despite Hardy's continued refusal to cooperate with
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the undercover special agents on May 3, 1991, the I.R.S./C.I.D. agents
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continued to phone him throughout May of 1991 and continued to "modify"
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their plans to see if they could suck Hardy into their trap! {Tr. 4/10/91
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at pp. 49-50} Each time, Hardy politely rejected their invitations.
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Nevertheless, in June of 1991, agents of the I.R.S., knowing full
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well that Hardy had refused to help them over and over to launder money by
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using illegal means, the I.R.S./C.I.D. agents contacted the D.E.A. Special
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Agent who they knew from first hand experience to have a D.E.A. informant
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who ran a check cashing business in Honolulu (Mike Harada) to help them
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such Hardy into their trap!
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Court hearing:
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Attorney: "In June of 1991, did you have a discussion with a Special
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Agent of the I.R.S. regarding money laundering in the State of Hawaii?"
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D.E.A.Special Agent: "Yes, I did."
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Attorney: "And what was the extent of that conversation?"
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D.E.A. Special Agent: "It was, as you say, in the month of June 1991
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when the Special Agent of the I.R.S. requested that I contact Mr. Mike
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Harada of the Hawaii Check Cashing Company, to ascertain whether or not he
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had a specific number of check cashing stores here in the State."
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Attorney: "Do you know why the I.R.S. Special Agent asked you that?"
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D.E.A. Special Agent: "For two reasons. I believe he asked me, one,
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because he knew that I had a personal relationship with Mr. Harada and his
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friends; and also because he knew Mr. Harada personally as well." He also
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told me that I.R.S./C.I.D. was conducting a financial "sting operation" on
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money laundering with the State; and that there was a ......it had come up
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where someone was going to, a suspect was attempting or would be utilizing
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a check cashing company to launder money: and the information further
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indicated that it was going to be the largest check cashing chain in the
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State." {Rt. 4/10/91 at pp. 12-13}
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The D.E.A. Special Agent did as requested and informed Harada (to
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act as D.E.A. informant) and keep an eye out and report back if he became
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aware of any suspicious activity. {Tr. 4/10/92 at p. 14}
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Special Agent Jacoby testified he was aware of I.R.S./C.I.D. and
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D.E.A. Special Agents directly involved in the "sting operation" being
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conducted against Hardy. {Tr. 4/10/91 at pp. 46-47}
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Finally, it was Harada (the D.E.A. informant) who set up and
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initiated the first meeting with Hardy. During that meeting it was Harada
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who brought up the idea of wanting to buy money in exchange for cashier's
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checks to hardy during their July 1991 meeting, not Hardy.{Stip. #15 and
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#16}
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Only after these events did Hardy become sucked into and involved
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with the unlawful activities hoisted upon him by the undercover
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I.R.S./C.I.D. agents and the D.E.A. Special Agent informant.
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III. ARGUMENT:
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The question of whether the actions of government special agents
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amount to outrageous government conduct which arises to the level of
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violation of a defendant's due process rights is a question of law for the
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court to determine.United States v Bogart, (1986) and United States v
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Ramirez, (1983)
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Fundamental fairness will not permit any defendant to be convicted
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of a crime in which police conduct is deemed "outrageous." United States v
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Twigg. (1978)
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The question whether police conduct sufficiently rises to the level
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warranting dismissal of charges is examined in light of the totality of the
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circumstances. United States v Twigg, (1978)
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In Jacobson v United States (1992) the Court held that the
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government had failed, as a matter of law, to give as a reason of proof any
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evidence to support the jury's verdict that Jacobson was likely to
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(independent of the government's acts) violate the law.
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Hardy readily acknowledges Jacobson was "framed" as an "entrapment"
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case. However, the nature of the decision and the analysis employed clearly
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applies to this case and certainly to the issue of outrageous government
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conduct.
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In Jacobson the court acknowledged sting operations were still valid
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investigative tools. However, the court made the following general
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conclusion regarding catching those defendants who were already engaged in
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illegal activity. Specifically, the Court states: "Likewise, there can be
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no dispute that the Government may use undercover agents to enforce the
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law. It is well settled that the fact that officers or employees of the
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Government merely afford opportunities or facilities for the commission of
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the offense does not defeat the prosecution. Artifice and stratagem may be
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employed to catch those engaged in criminal enterprises.
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Immediately upon the heels of this statement, the Court stated: "In
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their zeal to enforce the law, however, Government agents may not originate
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a criminal design, implant in an innocent person's mind the disposition to
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commit a criminal act, and then induce commission of the crime so that the
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Government may prosecute."
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The court held the government must prove beyond reasonable doubt
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"that the defendant was disposed to commit the criminal act prior to first
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being approached by Government agents." Of significance is the court said,
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"THE criminal act," not A criminal act." Finally, the court stated in
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conclusion: "When the Government's quest for convictions leads to the
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apprehension of an otherwise law abiding citizen who, if left to his own
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devices, likely would have never run afoul of the law, the courts should
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intervene."
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Thus, the Court's analysis in Jacobson, although worded in terms of
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an "entrapment" case, leaves little doubt the legal issue of "outrageous
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government conduct" is alive and well and should itself be analyzed under
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the dictates of Jacobson.
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In Jacobson the Supreme court has sent a clear message to the lower
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courts that overreaching and illegal conduct by the government cannot and
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should not be tolerated by any court.
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The evidence could not be clearer in this case that the government
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targeted Hardy, solely because the I.R.S. did not like how Hardy has chosen
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to exercise his First Amendment right of free speech and political
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expression. Indeed, the government is frighteningly brazen about their
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reasons for going after Hardy.
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The testimony in this case shows there was no evidence whatsoever to
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support the fact that Hardy had previously been involved in "drug money
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laundering" or even simple "money laundering" prior to the government's
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operation. The only prior claim of "money laundering' which could be made
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against Hardy was contained in Count 5 of the Indictment which was
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dismissed.
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In an act which rally shows the government's illegal intent Special
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Agent Jacoby testified, simply to have the sting "fit" a more serious
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criminal statute than the one applicable to simply money laundering,he
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created the idea of drug money laundering out of his own head, even though
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the I.R.S. in all the years of investigating Hardy had absolutely no
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evidence to suggest Hardy had ever previously committed any sort of drug
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crime in his entire life. This was not an "investigation" that the I.R.S.
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was conducting, rather it was an exercise in 1990's McCarthyism!
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The evidence also demonstrates over a period of months it was the
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I.R.S./C.I.D. Special Agents who consistently contacted Hardy and gradually
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turned the conversation to drug money laundering, not Hardy. Although
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confronted with vague innuendoes the undercover agents wanted to "launder
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monies from drug sources,: Hardy kept insisting he could only set up a
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system of legitimate trusts so they could do it legally.
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It was the special Agents who kept insisting the monies be converted
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into cashier's checks. Special Agent Jacoby's testimony about the May 3rd
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meeting clearly show it was the undercover I.R.S./C.I.D. agents who kept
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demanding some sort of illegal, clandestine operation be established,
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specifically using cashier's checks, not Hardy. Despite these repeated
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attempts by the undercover agents to such Hardy into their trap, Hardy over
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and over declined their overtures for several months.
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However, it was in July of 1991, Hardy was approached by one,
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Michael Harada, who ironically is a co-defendant in this case,who just
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happened to own the largest check cashing business in Hawaii, and who just
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happened to be a part-time D.E.A. informant and just happened to be working
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with the same D.E.A. Special Agent whom the I.R.S. was working on this
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sting operation.
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As the evidence shows, it was Harada who searched out and set up a
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meeting with Hardy for a discussion concerning the establishment of a
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legitimate trust system for Harada by Hardy. Frankly, it was Harada who
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brought up the subject whether Hardy knew anyone who had extra cash
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available to help him in his check cashing business. Only and only at this
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point did Hardy mention anything about exotic pawn dealers having extra
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amounts of cash from their business who needed to exchange their cash for
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cashier's checks.
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Thus, even if Harada was not clearly working for the D.E.A. during
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this time in terms of being under contract, although Hardy maintains he
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was, Harada was acting in an agency capacity for the D.E.A and on behalf of
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the I.R.S./C.I.D. covert sting operation. The D.E.A. Special Agent directly
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involved in the sting operation had specifically gone to the D.E.A. Special
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Agent to have him contact Harada, who just happened to have access to
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hundreds of thousands of dollars of cashier's checks, in order to launder
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the money of the undercover I.R.S./C.I.D. agents and make the operation
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work.
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The I.R.S./C.I.D. Agent did as testified in this case inform the
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D.E.A. Special Agent there was a sting operation being conducted
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specifically dealing with the need for cashier's checks.
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The record shows this discussion took place after Hardy had declined
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over and over again to get involved in any money laundering cashier's check
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cashing scheme!
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The evidence in this case clearly shows Hardy did introduce Harada
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to the Special Agents and Hardy was present at the meetings between Harada
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and the undercover agents when the arrangements were made as to how the
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alleged drug money was to be laundered. But, Hardy made it very clear he
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was simply hooking up two interested parties as a business favor and Hardy
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was not interested in receiving any monies for helping the undercover
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I.R.S./C.I.D. agents for putting the two "businessmen" together .
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The evidence in this case proves it was the undercover I.R.S./C.I.D.
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agents who insisted, time and time again, Hardy receive money for his
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"part" in the scheme. Again, the evidence clearly shows Hardy again and
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again kept refusing to take any money despite repeated attempts by the
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undercover I.R.S./C.I.D. agents to force him to take a "cut."
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Thus, the evidence shows the government created the crime, supplied
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the means to commit the crime, even committed the crime themselves by
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laundering over $300,000 in cash just because they couldn't get Hardy to do
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it, and by insistence and strong handed persuasion tried over and over
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again to induce Hardy to become somehow involved in this crime simply to be
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able to charge him with a hideous crime they knew he had never committed in
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the past nor would ever commit, if it wasn't for the I.R.S./C.I.D. agents
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pushing him into their criminal activities.
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On the point the Supreme Court has said: "In their zeal to enforce
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the law, however, the Government agents may not originate a criminal
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design, implant in an innocent person'[s mind the disposition to commit a
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criminal act, and then induce commission of the crime so the government may
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prosecute." Jacobson, 1992.
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The evidence in this case is clear this happened and "Jacobson"
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dictates the result. This court or any court should not stand by and
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condone the outrageous conduct committed by the I.R.S./C.I.D. Special
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Agents in this case. The conduct by the I.R.S. and D.E.A. is even more
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offensive than most cases because, as the government brazenly admits, this
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entire "sting" operation was conceived of and conducted specifically
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because the I.R.S. wanted to silence Mr. Lamarr Hardy for the technology
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Hardy developed and in the way which Hardy has chosen to exercise his First
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Amendment right, which was to speak out against the I.R.S. and their
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criminal activities!
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As the record shows the I.R.S./C.I.D. Special Agents even went so
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|
far as to fabricate a drug money laundering scheme and "structure" their
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"sting operation" so it would fall under the dictates of the "drug money
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laundering" statute rather than the less serious criminal statute related
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to evading I.R.S. reporting requirements (failing to file reports related
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to monetary transactions over $10,000 in cash) because they knew the
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punishment for drug money laundering is so much more severe. Again, such
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behavior by agents of the government who have taken an oath and sworn to
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catch criminals, not create them. should not be acceptable in a society of
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supporting free men!
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Under "Jacobson", the Supreme court recognized the government must
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show a defendant was predisposed to commit "the crime," not "a crime."
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Based on these facts, the court was requested to grant Hardy's
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motion to reconsider and dismiss all or part of the charges presented
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against him, even after all this the court denied his motion to dismiss and
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set the case for trial on August 27, 1992. After two weeks of hearing
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government agents tell their hideous story of how they framed and sucked
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Hardy into their drug money laundering scheme---for the sole purpose of
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silencing him---the jury on Thursday morning September 8th acquitted him of
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all counts.
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After the trial the members of the jury all came up to Lamarr Hardy
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and shook his hand, some of the jury even hugged him. What a joyous moment!
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The jury couldn't believe the government would go so far, just to get
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someone. They felt the I.R.S./C.I.D./D.E.A. Special Agents were the ones
|
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who committed the crime. In this case and tried every way they could to
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induce Hardy into their scheme for the sole purpose of trying to induce and
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honest citizen to commit a crime. "We weren't going to let that happen in
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America. We made the right decision. We acquitted Lamarr Hardy and we're
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proud of it."
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We must also give a special thanks to Alexander Silvert, Hardy's
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Federal Public Defender, and the whole staff at the Public Defender's
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Office for their hard work fighting for justice in this case. They did an
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awesome job.
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Finally, I'd like to thank my precious Yahweh, our Creator, for
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being with me throughout my trials and tribulations and finally setting me
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free to continue to teach the truth about the crime that the I.R.S. is
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perpetrating on his people.
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If you'd like to contact Lamarr Hardy personally, you can reach him
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|
by phone by calling (800).............
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If you'd like to get more information about how you can set up your
|
|
own "Reliance Defense" to protect yourself against the I.R.S., please send
|
|
your full legal name, address and phone number plus .........to P.O.Box
|
|
............................... Ask for the "Reliance Defense Packet." The
|
|
packet will explain in detail every thing you need to know about setting up
|
|
your own personal "Reliance Defense." Remember, this is the same
|
|
information the I.R.S. spent millions trying to stamp out--obviously for
|
|
some very good reason---they don't want you to have it. Why?! Because they
|
|
know it works! Hurry, order your packet today before it's too late!
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[END OF DOCUMENT: hawaii.txt.lis ]
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+=============================================================================+
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| D I S C L A I M E R |
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+------------------------------------oooOooo----------------------------------+
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| The sender of this message is not responsible for and does not necessarily |
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| agree with the content or opinions contained herein. Mail will be forwarded |
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| to the source identified, if any. This is for "information purposes only", |
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| has not necessarily been verified or tested in any way, and "should not be |
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| construed as legal advise". Your comments and responses are encouraged. |
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| Please Email to "ajteel@dendrite.cs.colorado.EDU" instead of replying here. |
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| With Explicit Reservation of All Rights, UCC 1-207, A. J. Teel, Sui Juris. |
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+=============================================================================+
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| The American's Bulletin, Mr. Robert Kelly, Sui Juris, Editor (503) 779-7709 |
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| c/o 3434 North Pacific Highway, Medford, Oregon, U.S.A. Postal Zone: 97501 |
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