1 MICHAEL J.

YAMAGUCHI
United states Attorney
2
JOEL R. LEVIN
3 C~ief, Criminal Division

41 RONALD D. SMETANA
Special Assistant U.S. Attorney
5 GEORGE D. HARDY
Assistant U.S. Attorney
6
450 Golden Gate Avenue
7 San Francisco, CA 94102
Telephone: (415) 436-6851
II
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
10
UNITED STATES OF AKBRlCA, ) No. OR 94-0276 CAL
11 )
Plaintiff, ) All!'lI!'IDAVIT Oll!' WILLARD L.
12 ) HATCHER, JR. Illi SUPPORT
v. ) OF GQVBRmU!JIIT'S EX-PARTE
) SUBHXSSION
CONNIE C. ARHSTRONG, JR., Iilnd )
14 RICHARD A.FOlllrLES, )
)
15 Dllfondanta. )
---------------)
16

17 I, Willard L. Hatcher, Jr., state that:

18 I have been a Special Agent with the Federal Bureau of

19 Investigation ("FBI") for 6 years, and am currently the case

20 agent for the prosecution in United States v. Connie C.

21 Armstrong. Jr .. et al, I have been involved with the

22 investigation of Hamilton Taft and Company since March of 1991.

23 Prior to his retirement on January 1, 1997, FBI special Agent

24 Patrick K. Murphy was the case agent.

25 2. I first learned of the government's possession of

26 recorded conversations of Connie C. Armstrong, Jr., on the night

AFFIDAVITOP WILLARD L HATCHIJIl, lR

IN SUPPORT OF GOYllRNMENT'S EX-PARTE
SUBMISSION
 1 of January 12, 1997, after witness Terri Robins informed
2 Assistant United states Attorney George Hardy of their existence.
3 3. I telephoned Patrick K. Murphy on January 13, 1997, and
4 asked his knowledge of such recordings. Mr. Murphy stated that
5 he understood that Ms. Robins had made some recordings for the
6 government on an unrelated investigation. Mr. Murphy stated he
7 did not know that Ms. Robins had ever recorded conversations with
8 Armstrong.
4. Mr. Murphy and I knew of the existence of the Dallas
10 FBI's investigation of Armstrong's activity at Comp-U-Check. We
11 understood that this investigation related to conduct that
12 occurred well after the bankruptcy of Hamilton Taft. To our
13 knowledge this investigation was unrelated to Hamilton Taft
14 except for the common involvement of Armstrong.
15 5. Since January 12, 1997, I have contacted Special Agent
16 Peter A. Galbraith, the Dallas FBI case agent for the Comp-U-
17 Check investigation, and requested all taped conversations with
18 Armstrong. I have received thirty-six (36) audio tapes and
19 special Agent Galbraith has assured me that these constitute all
20 of the tape recordings of Armstrong in the possession of the
21 Dallas FBI.
22 6. In addition, Special Agent Galbraith provided to me
23 copies of 302 reports prepared relating to the tapes and
24 documents provided to the Dallas FBI by Terri Robins. He assured
25 me that all of the reports and documents have also been forwarded
26 to San Francisco.

AFFIDAVIT OF WILLAIlD L HATCIlEll, JR

IN SUPPORT OF GOVERNMENT'S EX~PAR.TE
SUBMISSION 2
 1 7. Agent Galbraith expressed concern about the disclosure
2 the tapes, reports and documents to Armstrong because the Comp-U-

3 Check investigation and other related investigations are on-going

4 and he is concerned that disclosure of the materials may
5 jeopardize these investigations. He understood that certain of

6 the tapes, written materials and reports may have to be turned

7 over to Armstrong, but requested that the materials be

a scrutinized carefully and that those ultimately turned over be

9 limited to those necessary to protect Armstrong's rights without

10 harming the investigations.

11 8. Agent Galbraith said that all of the conversations were

12 recorded and documents were received in late 1993 and early 1994,
13 SUbsequent to the Hamilton Taft bankruptcy and before the

14 indictment of Armstrong.
15 9. After review of the tapes and documents by myself,

16 Special Agent Laura Nielson, Assistant United States Attorney

17 George Hardy and special Assistant United states Attorney Ronald

18 Smetana, we determined that Hamilton Taft is mentioned in five

19 (5) tapes; copies of the relevant portions of those tapes have

20 been reproduced for review by the Court for a determination of

21 whether they should be turned Over to Armstrong. In addition,

22 there is one document, a "novella" about Hamilton Taft, that has

23 statements attributed to Armstrong; since I do not know its

24 authorship, that document has been copied for the Court's review.

25 10. All of the reports, tapes and documents received from

26 the Dallas FBI are being made available for the Court's in camera
AFFIDAvrrOF wn.LARD L HATCHER, JR
IN SUPPORT OF GOVEIlNMIlNl"S !lX-FARTE
SUBMISSION 3
 1 review.

3 I declare under penalty of perjury that the foregoing is

4 true and correct. Executed

5 Francisco, California.

Ii

8
COUNTY OF SAN FRANCISCO )
9 ) SS.
STATE OF CALIFORNIA )
10

11 Sworn to and subscribed in my presence on January 24, 1997,

12 in San Francisco, California.

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AFFIDAVIT OF WILLAIID L HATCHER, JR

IN SUPPORT OF GOVERNMENT'S EX-PART!!
SUBMLSSION 4