Motion Picture Association of America v. CrystalTech Web Hosting Inc.

Filing 1294

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Motion Picture Association of America v. CrystalTech Web Hosting Inc. Doc. 1294 Att. 2 .~. I ..' ._- . i I I i i 2 3 IN THE ilNITED STATES D1 STRICT COURT I;,;, .' I ¡"OR THE DISTRICT 'OF ARIZONA I PRESCOTT DIVISION 4 5 6 7 8 UNITED STATES 02 AMERICA, , ) Plain.tiff, pC!" . V" ) ) ) ) NO. CV05-3073-PCT-EHC ) 9 ELIZABETH A. GARDNER and FREDRIC A" GARDNER, each individually and d/b/a BETHEL ARAM MINISTRIES, ) ) ) ) ) ) 10 11 12 Defendants. 13 DEPOSITION UPON ORAL EXAMINATION OF LOYAL L. RITTER 14 15 16 17 18 617 Washington Street Wenatchee 1 Washington May 16, 2007 4:00 p.m. 19 20 CC(Q~)f TAKEN AT THE INSTANCE OF THE PLAINTIFF 21 22 23 CERTIFIED COpy ~ PLAINnFF i 24 REPOi';TED BY: 25 ie. KAY VAUGHAN 1 RPR, CCR ~._-..- ---._---~-_._--~_.- -----------------------,'": : ~- rl:~_;\.L (;O'L:R. T Rr~ l? () r- "C ~~_ l'T(+ . ~ -, I l EXIBI l. _. (3 0 C - /~ 4 :.~ I ,i.-J'p D" _ .... ,'_ \.~ j ! -, ~ ." . f ".:'..J. '.:.;- 016 1 ",-APPEARANCES: 2 FOR THE PLAINTIFF: MR. MARTIN M. SHOEMAKER U. S. Department of Justice Tax Division Civil Trial Section, Central Region P.O. Box 7238 - Ben Franklin Station Washington DC 20044 (202) 514-6491/ (202) 514-6770 martin. m. shoemakerWusdoj . gov 3 4 5 6 7 PRO SE: 8 ( TELEPHONI CALLY) 9 MS. ELIZABETH A. GARDNER MR. FREDRI CA. GARDNER P .0. Box 2038 10 11 Dewey, AZ 86327 (928) 775-5454/ (928) 775-9899 ALSO PRESENT: 12 13 14 (TELEPHONICALLY) MR. DAVID BORDEN 15 16 17 18 19 20 21 22 23 24 25 ,":". --~ :~~, -~~ -. \:~.: CENTRAL;COURT REPORTLNG 1-800-442-DEPO ,~i;';~~:nSeat't,l:e¿::-:,,:Be.ii evue ,. Yakima -; T1Jenacchee 2 017 1INDEX 2 USA V. GARDNER NO. CV05-3073-PCT-EHC 3 May 16, 2007 4 5 6 TESTIMONY LOYAL L. 7 8 RITTER PAGE NO. 4 9 Examination by Mr. Shoemaker Examination by Examination by Ms. - 31 10 11 12 13 Gardner 31 - 40 Examination by Mr. Shoemaker Ms. 40 - 41 41 - 42 Gardner 14 EXHIBITS MKD rD Exhibi t No.1, Copies of Three 15 16 i7 Checks from L. Ri t ter to Bethel Aram Ministries, Check Nos. 4935, 5000 and 5019 Exhibi t No. 2 i Bethel Aram 24 28 24 18 19 Ministries Donation Sheet 25 26 28 30 20 21 22 23 Exhibi t No.3, Bethel Aram Ministries Contribution Agreement Exhibi t No.4, Bethel Aram Ministries Corp Sole FAQS Exhibi t No. 5, Bethel Aram Ministries What is a Corporate Sole 28 2B 30 24 25 CENTRAL COURT REPORTING l-BOO-442-DEPO Seattle ~' Bellevue - Yakima - Wenatchee 3 018 i 2 3 BE IT REMEMBERED that on Wednesday i May 16, 2007, at 4:00 p.m., at 617 Washington Street, Wenatchee 1 Washington, the deposi tion of LOYAL L. .I 4 5 6 7 8 9 RITTER was taken before C. Kay Vaughan, Registered Professional Reporter and Notary Publ ic. The following proceedings took place: being first duly sworn to tell the truth, the whole truth and nothing but the truth, testified as follows: LOYAL L. RI TTER, 10 11 12 13 14 EXAMINATION BY MR. SHOEMAKER: Q. 15 16 17 18 All right. Mr. Ritter, could you give me your ful 1 name, please. A. Q. Loyal Lee Cl ayton Ri t ter. Could you give me your home address. 16043 Chumst ick Highway i Leavenworth, Washington 1 19 A. 20 21 22 23 24 A. Q. Q. 98826. All right. No. Mr. Ritter, have you ever had your deposition taken before? All right. Let me just explain briefly what i s 25 going to happen here. I i m going to ask you a 4 CENTRAL COURT REPORTING 1-800-442-DEPO Seattle - Bellevue - Yakima - Wenatchee 019 1 series of questions. I i d just ask that you answer 2 3 them completely 1 truthfully. A. Q. Uh-huh. i f i ask you something you do not understand, 4 5 6 7 8 9 please stop me and I will try to clarify it. A. Q. Okay. Also avoid nonverbal or nonoral gestures. court reporter here is going to take down The everything we say. And she can i t pick up nods 10 11 12 13 or -A. Don i t have those emotions like they do on the Internet there, huh? Q. Exactly. Okay. 14 A. Q. 15 16 i7 After I 'm f ini shed talking, Mr. and Mrs. Gardner wiii have the opportunity to also ask you quest ions. 18 19 A. Q. Okay. And t hat wi 1 1 be it. 20 21 22 23 A. All right. MS. GARDNER,: Could you possibly speak a little louder? THE WITNESS: Can you not hear me? 24 25 Yeah, now I do, but I couldn 't hear you, Martin, very well. MS. GARDNER: CENTRAL COURT REPORTING I-BOO-442-DEPO Seattle - Bellevue - Yakima - Wenatchee 5 020 i 2 3 MR. SHOEMAKER: All right. Okay. We i i i try to make that a point. MS. GARDNER: Q. 4 (By Mr. Shoemaker) Could you tell me your 5 6 employment for the past five years. A. I have been a real estate agent or Broker for the last five years in Leavenworth. Tha tis how I 7 8 9 earn my living. Q. Do you have income from other sources? 10 11 12 A. Q. No. Tha tIs it. Do you know El i zabeth Gardner? I do know El i zabeth Gardner. A. Q. 13 Do you know Fredric Gardner? 14 A. Yeah. I know him by Rick. Probably the same 15 16 17 18 Q. person, I would imagine. Rick is short for Fredric. A. Q. Yes, 'i am. So I i ve spoken wi th him. Are you familiar with Bethel Aram Ministries? 19 And how did you first learn of those two individuals and Bethel Aram Ministries? 20 21 A. I believe it was through the Internet. I was 22 23 24 25 searching for information about corporate soles . and I came upon their Websi te. And that's how I contacted - - I think I spoke with Elizabeth first. I may have even e-mailed and then talked 6 CENTRAL COURT REPORTING 1-800-442-DEPO Seattle - Bellevue - Yakima - Wenatchee 021 i 2 3 to them at that point_ Q. Do you remember what the W~bsite' s address was or the name? 4 5 6 7 8 9 A. I think it was, to the best of my recollection. Q. If I said could it have been www. corpsole. org -- A. Q. Very possible. Absolutely. It could bei yeah. So you were interested in corporation soles; is tha t correct? A. Q. ~ 10 11 12 uh-huh. You were doing Internet research and you came upon that Website? ~ 13 14 15 A. Q. . That i S correct. Amongst many others. All right. Yes. l And the corpsole. org Websi te led you to the Gardners i is that correct? A. 16 17 18 19 It had a "contact us" section, I believe, and it -- i think it had their e-mail address. think that i s how I first made contact was by I clicking on the "contact us" e-mail link. Q. 20 21 22 23 So you contacted the Gardners first? A. Q. . Yes. They didn't contact you first? A. Q. -- That i S correct. 24 25 All right. when was thi s? Somewhere in 2003. I would guess - - November of 7 A. CENTRAL COURT REPORTING 1-800-442-DEPO Seattle - Bellevue - Yakima - Wenatchee 022 1 2 3 So I received that through the e-mail from my inquiry. Q. And on the donation sheet it talks about making separate checks out to Bethel Aram, Carol Spackman, State of Nevada. 4 5 6 7 8 9 Did you, in fact, make separate checks out to those three? A. I made - - it was a - - I think it was $1,000 was the amount to set up the corporate sole, that donation level. 200 went to Carol Spackman. 10 Plus filing fees, I believe. And this is ~- 11 12 breaks it down a little bit farther, which is my commi tment to make donations to Bethel Aram 13 14 Ministries. Q. 15 16 17 All right. Thi s wil 1 be Exhibi t 3. exactly what Exhibit 3 is. Tell me A. It is a Contribution Agreement that I formed with Bethel Aram Ministries so that I could make 18 multiple payments and start the paperwork, you know, sooner than later. 19 And so this is what was 20 21 22 23 24 Q. put together and sent to me again through e-mail, which is -- Sent to you from whom? Bethel Aram Ministries. A. Q. When you were dealing with Bethel Aram Ministries, 25 what person were you talking to? CENTRAL COURT REPORTING 1-800-442-DEPO 26 Seattle - Bellevue - Yakima - Wenatchee 023 i 2 3 A. I believe the second page has Elizabeth's signature on it. Q. And that's - - that's who sent me that one, I believe. 4 5 6 7 8 9 All right. Bethel Aram? r Other than Elizabeth or Rick Gardnerj did you speak with anyone else associated with , A. Q. Bethel Aram? No, I don't believe so. Huh-uh. All right. Okay. I sent you a subpoena in this case 1 correct? A. Q. 10 11 12 13 Yes 1 you did. And the subpoena requested that you send all - - or bring with you all documents in your possession or control , including checks, correspondence, 14 contracts, agreements and promotional material in any way related to Bethel Aram Ministries, is 16 17 El i zabeth Gardner or Fredric Gardner. done that? A. Ha ve you 18 19 Yes. That i s what these two piece of paper are, the questions and answers pages that I have here that I read over, and then the corporation sole 20 21 22 23 documents. Those are the sum total of what I have that would have anything to do with Bethel Aram Ministries. Q. 24 25 This Corporation Sole Questions and Answer document wi 1 1 be Exhibi t 4. CENTRAL COURT REPORTING 1-800-442-DEPO Seat tle - Bellevue - Yakima - Wenatchee 27 024 i 2 3 MR. SHOEMAKER: MS. GARDNER: Your objection is noted. I can i t hear you. Noted. Noted? Okay. I cannot hear you, sir. MR. SHOEMAKER: MS. GARDNER: Q. 4 5 6 7 8 Thank you. (By Mr. Shoemaker) All right. One more exhibi t . I i m going to make - - in your notebook you have a tab 4, a set of documents leading off with "What is a Corporation Sole, II and I'm going to make this depos i t ion Exhibi t 5 and I ill make a copy of it. 9 10 11 12 13 14 (PLAINTIFF'S EXHIBIT NO.5 MARKED FOR IDENTI FI CATION. ) Q. Can you tell me what exactly deposition Exhibit 5 is? A. 15 Exhibit 5 is a number of pages that help me to 16 i7 understand a little more of what a corporate sole is i that I can open, you know, a bank account 18 wi th a corporate sole, how to do it, and how to 19 change personal property to a corporate sole if I 20 21 22 23 24 25 Q. desire to do that and how to dissolve a 501 (c) (3) . So it l s just part of the manual that I have that tried to identify in a little greater detail what a corporate sole is. Al i right. And where did that document, Exhibi t 5, come from? CENTRAL COURT REPORTING 1-800-442-DEPO 30 Seattle - Bellevue - Yakima - Wenatchee 025 1 A. This came from Bethel Aram Ministries. It was 2 3 part of the packet that was sent to me wi th the Secretary of State Corporate Charter. Q. Al 1 right. 4 5 6 7 8 MR. SHOEMAKER: That is all I have. Mrs. Gardner i you have the floor. MS. GARDNER: Thank you. 9 EXAMINATION 10 11 BY MS. GARDNER: Q. Loyal, you said that you haven i t talked to me 12 13 14 since last year. You talked about anything but the conference, the ministers the pastors conference. A. Q. 15 Uh-huh. Did we not at all talk about spiritual things? 16 17 A. Q. Wel l~ I i m sure that was in there. it is? Absol utely. is 19 Do you understand that the corporation sole, what 20 21 22 23 24 A. Q. Yes, I understand what a corporate sole is. Okay. What is a corporate sole i in your unders tanding? A. A corporate sole is one person that is the spiri tual leader of this part icular enti ty. an ongoing, everlasting entity, and that its It 's 25 CENTRAL COURT REPORTING I-S00-442-DEPO Seattle - Bellevue - Yakima - Wenatchee 31 026 WHAT IS A CORPORATION SOLE A corporation sole is a esteemed creation consisting of one person only, and his successors in some paricular position, who are incorporated in order to give them sole legal caacities an advantaes, paricularly tht of perpetuity, which in their natul person they could not have had. The cru of ths description is not that the corporaion sole is composed of a single person. Raer, it is really composed of a nwnber of persons who, one afer another, hold the same offce. If the corporation sole is an overseer, bishop, or pator, etc. of a church organzation, he/she becomes a trstee/steward of that mistr only in the capacity of the corpration sole offce. He does not become possessor of it. When he/she leaves the church/mi for whtever reason, he does not tae the asets with hier. The succeeding corpration sole then taes the offce of corporation sole and he/she becomes the trtee/stewad of the church/mistr. The corpration sale is a paricular position of an offce. The offce is not created under law, and is not under the junsdction of the state. The offce is recorded with the S~reta of State in a parcular stte for recogri:tion and existence that you are an Ambassador of the Nation of Jesus COOst out of the root of Abra's seed ofIsac. A corporation sole is not a corporation in any way or fashion. A corpration is an association of sharholders created under law, and regarded as an arificial person by the cour for doing business. Man canot incorporate the tre body of Clinst. If man attempts to inorporate Chrst's body, he desires to be other than Chrst's body. If you are a pastor of a church, the congregation does not employ you for a salar. If so, you ar considere an employee and income from the exercise of your mist is employee. He/she is a sovereign in his/her own right and is fufillng the commsion the offce of considered income frm waes for income ta puroses. A corpration sole is not an of the religious order by performg services requied by tht order. i ~ ~L.;t' . I: ~S-~ j ~ l EXHIBIT ~ 027 .. WHAT IS A SUCCESSOR CORPORATION SOLE A corpration sole successor is the one who is succeeded by an established corporation sole in some pacular position who contiues the same spiritual care of the inbitants of the churh/ministr. All the origina rights of the church/ministr are preserved entirely to the successor. When the corpration sole successor taes position of the established corporation sole, he/she must record hisler offce of succession with the state of Nevada by sending a copy of the corporation sole Resolution to the Secreta of State. Beth Ar will help you with ths. If the successor desires to be a corporation sole in hisler own right, aricles of incorporation of hisAer title £offce) must be estalished in mslher own caacity. Ths may be accomplished by contating Bethel Ar Ministes legal deparent at (928)775-5454, or P. O. Box 2038, Dewey, Arzona 86327. If you are corpration sole and you are not a pastor of a church or in a mist that you want to contiue on at your demise, and have assets you put in the mistres name, you will want to form a Canon Law Tru to get the assets to your heirs. You canot give the assets of the corpration sole directly to your heirs. Ths is ilegal nnder the statutes of corpration sole. In a resoluton directive you will donae all the assets of the corpration sole to the trst. Your heirs will be the beneficiar of the Canon Law Trust, thus receiving the assets. If you ar pator of a church and will be having another pasor or person of the church become your successor, all your personal assets should b~ put in the Canon Law Trut. Any assets you put in the corpration sole wi go directly to the successor. RIc Gadner of Bethel Aram Minstres is a Cerified Estte Planer with speial trg in Business and Chartale Plang and will help you form your Canon Law Trut. HOW TO DISSOLVE THE 501(C)(3) CORPORATION To dissolve a 501(C)(3) corpration, you must cali the corporation commsion in your state and ask what is the procedure to dissolve a non profit corpration. Every state is different in ths procedure. Some sttes have a form tht must be filled out, others require anytg. a letter in the effect that you are dissolvig your corporation and others do not require 2 028 If the church propert is not paid in full, a Quitclaim Deed would be made. The deed would be made out the same as the Warty Deed. The only difference would be the heading would indicate Quitclai Deed intead of Waranty. After the propert is paid off then a Waranty Deed could be made. Form for either a waty deed or a quitclaim deed may be obtaned at any sttionar store or real estate offce. If the corporation sole desires a professional deed. Bethel Ar Ministres' legal deparent can provide this servce. CHANGING THE PERSONAL PROPERTY OF A CORPORATION SOLE If a corpration sole desires to place hislher personal propert (home) in the name of the corporation sole mistr, he/she may do so. If you are a corpration sole of a church congrgation, it would be titled in the nae of the corporation sole, but will not include the church naie. The home then can be exempt from the propert ta, and would protect you from the probate system, liens, creditors, and judgments. Example: KNOW TO ALL ME BY THSE PRESENTS: Tht (The Name that the home is in) the undersigned grantor, for the consideration of Ten (10) Dollars, and other valuable considerations, do hereby covey to (JOE SMIm, a corporation sole of ABC Ministry) all nght, title...... ............ Lf the corporaon sole desirs to trfer the home and assets to their heirs, he/she must place the home and assets in a Caon Law Tru that may also be obtaed from Bethel Ar Minstes. Ths tr will protet you frm the probate system, liens, creditors, and judgments, as would the corporation sole. If you need any direction in changig your persona propert, feel free to call Bethel Ar Minstres, and the legal deparen,t will help you. 4 029 This is the best way of makng your check. If you are in personal ministr you will NOT need to put Name of offce below the signatue line unless you desire to. INQUIRIES FROM IRS Corpration sole is NOT a corporation according to IRS. It is not found in their regulations. The reaon is it is not located in their reguations is beause it is not under their jursdiction. Although it is in the sta of a non-profit organzation, it is not an t organzation incorporated under their reguations. Corporation sole is totaly separte from a regular corpration. If the IRS makes inquires concerng the church/mistr, notify them tht you ar a corpration sole. Ths will end their inquiry. Do not give them any inormation, e,xcept that you are a corpration sole! If you receive anytg you do not understad, contat Bethel Ar Minstres and they will help you. Don't fait, ths is not likely to ever happen, especially if you are workig the ministr as stated in your corporation sole aricles. WORKERS AS MINISTERS Remember, a corpration sole does not have employees. Any workers in your church/mistr ar considered misters. An ordination certifcate must be made for each worker designatig their capacity of mistr they will be perfonng for the - corpration sole church/mistr. The certifcates ar available at any staionar store. Be sure to purchae golden seasalso. They are to be placed at the bottom of the certficae and sealed with the corpration sole seal. An example of a Certifcate is on the ne page. The workers are rewarded as a donation or monies for their support by the order of the corporation sole without any ta deductions if the worker takes a Statement of Faith (vow of povert). An example of a Workers Statement of Faith is on the next page. The corporation sole does not have to issue a 1099 or W-2 form to the workers/ministers of the order. They are exempt from taation. But if they work outside the corpration sole, they must fie on the wages they receive from the entity they work for. See IRS publication 517 in section 5. 7 030 fr CANON LAW TRUST If you received a Canon Law Trut, be sure to read it carefully and sign your name where indicated immediately. The Canon Law Trust is used as a member of your LLC and for estate plamg. If you do not have a LLC, it will be used for estate planng for the corporation sole. Remember, you canot give, donate, or tranfer any asset in the corporation sole to your heirs directly. The only way you can get them to your heirs is by donation from the corpration sale to the trt. The asset can never go dirctly from the corporation sole to the heirs. Afer you have signed you corporaon sole, wrte a resolution in the corpration sole indicag that al assets of the corporation sole at the demise of the corpration sole ar to be donated to the Canon Law Trut. Your heirs will be the beneficiares of the trst, thus receivig the assets. If your spouse is your successor, she will wrte the resoluton signed by her as successor to donate the assets to the trt. If you are passing the corpration sole to someone other th your spus, and want a porton of the asset to remai in the corpration sole and a portion be passed on to your heirs, a resolution must be made indicatig the percentage you want to go to each entity. If you ar a pator of a church, the church can be put in the nae of the corporation sale for protection. If you are not plang to make someone that is par of the church to be your successor to contiue the pasorate of the church, you may want to wrte a resolution at your resignation or demise, the church propert is to be put in the name of XYZ and that you relinquish all rights to it afer your resignation or demise. Personal assets can be put in the trt if you wish. I -suggest th your home corpration sale. If your state allows exemption for mist propert, it can be taen off be in the the propert ta list as the parsonae, thus relieving you of propert ta. 12 031

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