To the cell of C

To the cell of C.J. Palmieri

MR. C.J. PALMIERI: July 14, 2003

C/O WILLIAM TRAINOR

233 “A” STREET, SUITE 400

SAN DIEGO, CA 92101

Hey Jailee:

So, after almost three years you are now acknowledging that your victims were “INCONVENIENCED” by your lies, and deliberate stealing of their life savings.

Some real progress has been made.

It seems pitiful, that you are now going back to your old tricks of telling people, you have stolen from, what you think they want to hear. Your promises are nothing but a rehash of what you were saying before you were caught. Can’t you think of anything new? It has been proven that

you DID NOT buy even ONE viatical and set up the escrow company to defraud investors from the very beginning. Then, promises of payment while you were transferring monies to off-shore accounts and taking out 2^nd and 3^rd loans on properties you couldn’t sell.

OF COURSE, you now admit that you may have some “resources” that could pay off some of what you owe. It is estimated that you have up to $10,000,000 hid in off-shore accounts. I notice, that you do not mention any percentage or amount of payment to us! You want us to do you a large favor and then, we are to HOPE you will do the right thing and come through with “some” payment. Yeah, like before!

I am going to do my best to see that NO tolerance or leniency is given to you BEFORE you come through with monies. In fact, I am only willing to reduce your prison term in proportion to your compensation of victims. In other words, pay us back 50% and we’ll agree to a 50% reduction in your prison term. Something for something. NOTHING, for promises that we have all heard before. THE MONEY HAS TO COME FIRST!!!!

You can count on us to show up at every parole hearing you have TOO!!

I am going to encourage the other victims to not give in to your demands of leniency before any payment. Judges, DA’s, Corp. Commissions, and IRS will be notified of our position.

If we had not been able, through the good offices of the California Dept. of Corporations and the San Diego DA. You would have made good, your cleaning out of all the accounts - in short, the only monies we will get are the ones you were so greedy for, that you stayed around and got your hand caught in the cookie jar. This does not bode well for anyone accepting your promises.

Even, now you have the effrontery to expect your victims to be so desperate for funds to take the known high risk of trusting you and help you out. TO ASK YOUR VICTIMS FOR HELP AFTER LYING TO THEM AND STEALING THEIR LIFE’S SAVINGS is rubbing their noses in a very smelly dish.

Especially, when we all KNOW you still have access to lots of our money and will not part with any of it. If, this is not true - then, as asked before by authorities, just show where the monies went!

Your easily, seen-through plan, is to come out of this with a couple of million$ (or more) after only spending a few years in prison. Not bad work, if you can get away with it. The IRS will be

on your case the minute you get out of prison. We will keep track of you every minute.

You think, you are smarter than everybody else. If, this is the case then why are you in jail now?

You will not let yourself, truly look at what you have done or you would REALLY try to make good on the money you have stolen from people who trusted you.

You have hurt, people that depended on the honesty of others with their life’s savings. You do not let yourself think about them, but only how you can get them to help you. What a sad human being you are! If, you really, wanted to make amends then show where the money went, and make a real offer of money to be returned.

The disgust, I feel for you has not changed and with this pleading self-serving letter is even greater!

You defrauded over 180 people - this was not a sometime thing for you - you did it over and over. It was not a slip or mistake or something done of inexperience - you did it deliberately over and over again. Then lied about it!

As, I said before - I will be sending this letter to other victims, Judges, law enforcement agencies both Federal and State as well as to tv and newspaper media.