LETTER TO THE FTB OF CALIFORNIA REGARDING THE LIES AND DECEIT PURVEYED BY MICHEAL HAMERSLEY OF HAMERSLEY PARTNERES THE

LYING MURDERING FAUX TAX SHELTER CRUSADER TAX SHELTER TAX SHELTER TAX SHELTER TAX SHELTER KPMG KPMG KPMG KPMG

Dear California Franchise Tax Board: I was reading a recent Wall Street Journal Blog and came across a discussion between one of your high level tax lawyers and someone named whistlewhat. In that Blog Hamersley a high level Government official threatened whistlewhat with investigation by government authorities presumably under the control or influence of Hamersley for calling Hamersley a liar, which based on the posts, Hamersley does appear to be a liar. California is Bankrupt, contemplating illegally issuing its own currency and confiscating citizens income by not paying refunds and now a high level government authority is threatening ordinary citizens with investigation for expressing views Hamersley does not approve of, are there no bounds on the malfeasance of the Government? Is California now not only stealing from its citizens but taking away their first amendment rights? I am glad I left California long ago as I am sure many will in the future until all California is left with are people needing social services and IOUs. Also, as an aside, it does appear Hamersley was busy blogging on the taxpayers dime (as the date stamps are est).

Hamersley, now you have gone and done it. You threatened me, I am so so so scared, oh, I forget, I have the emails and witnesses, phew. The truth something you know nothing about is an absolute defense. Check out the emails below wherein I have extracted exact quotes, the first one is your words and proves all your previous statements in this post to be complete lies. Note, I was able to do this without criminally violating Section 7216 (unlike yourself) as I have disclosed no confidential taxpayer information. Directly below is a list of 6 lies you just posted about me, I guess I may have to now sue you. Items 7 and 8, are direct threats by you against me, that I will have to speak to counsel about. In fact in point 8, you being a Government thief and all, threatened me with investigation by the very authorities you control, only in America does the Government have such power to threaten ordinary citizens for exposing the never ending corruption in Government. Further, I have reviewed in detail your

publicly filed lawsuit against KPMG, your complaint is riddled with easily proven lies, how are you going to get around that one dude though I do give you credit for extracting some decent dough out of that malevolent firm. Oh yeah, and there are many more equally damaging KPMG emails by and about you. Orwell said it best: In a time of universal deceit, truth telling becomes a revolutionary act. Hamersely quotes on WSJ Blog dated 6/21/09 1. another in a long line of recent libelous postings on your blogs. 2. engaging in a widespread campaign of libel, slander, and other tortuous/illegal conduct aimed at impugning my reputation 3. remove such libelous commentary from your blog 4. you believe support your outlandish allegations 5. because, frankly, I have idea what you are talking about. 6. Your statements are patently absurd 7. other than to tell you that you are digging your hole even deeper with this latest postingit appears KPMG and others may now have claims against you 8. I will also seek a restraining order and have authorities contact you regarding your intentions. Hamersley emails: Direct quote by you from an email dated 5/24/00 to a KPMG Senior Manager. Then P sold the S stock to its lawyer for $1. As a result of the transaction, S is a dormant corporation and remains dormant until it is dissolved. Pursuant to our phone conversation, there is substantial authority (at a confidence level of approximately 20 -30 percent) to conclude that the above transaction can be characterized as follows for federal income tax purposes Direct quote from an email sent to you on 6/12/00 Attached are the documents prepared by Walt regarding the reorganization of..YSA Direct quote from email sent 5/18/00 regarding 1999 transaction not documented until well into 2000. Instead in December of 1999 the following transaction occurred Comment by whistlewhat - January 22, 2009 at 7:55 am

What about the financial scam miscreants working for the Government like Mike Hamersley (a public figure who has appeared on Frontline perpetuating his lies) who like Geithner is a tax fraudster in a high level government tax administration position. Hamersley works as a high level tax shelter lawyer for the state of California which is bankrupt, illegally issuing its own currency and confiscating income from citizens. This should come as no surprise since the FTB has working for them one of the biggest tax fraudsters of all, Mike Hamersley, helping to confiscate more income from taxpayers who have honestly filed their own tax returns unlike the thief, Hamersley. On May 24, 2000 at 3:33pmpst one of Mike Hamersley working at KPMG at the time sent an email to a KPMG senior manager, advising her that their KPMG client had substantial authority to take a sham paper loss if the client sold stock of a subsidiary to the clients lawyer for one dollar. This was outright tax fraud. Further, on June 12, 2000 at 10:18ampst, the same KPMG senior manager sent an email to Mike Hamersly containing copies of the documents effecting Hamersleys fraudulent plan back to 1999 for his review, a classic case of backdating a fraudulent transaction. Also, February 9, 2003, at 1:18 pm one of KPMGs top executives sent one of KPMGs top lawyers an email stating that Mike Hamersley had disseminated confidential information to his wife, who worked at Latham and Watkins in clear violation of Section 7216, a criminal statute. In the recent KPMG case, it was also confirmed that Hamersley violated Sections 7216 and 7212 by illegally disclosing confidential information to various parties. Ask Hamersley for all his emails which he illegally late at night obtained in violation of KPMG protocol and stole many for his own personal gain when he sued KPMG (or ask KPMG for the emails, they all still exist). As an aside, Hamersleys fraudulent activities did not stop there, when he obtained his KPMG settlement based on all his lies and theft, Hamersley failed to report the settlement as income under a twisted analysis of Section 104 (or at a minimum conspired to do so as he discussed doing so with several witnesses). How can the FTB employ Hamersley in their tax shelter division when he did not even bother with legal tax shelters but rather engaged in outright fraud and likely continues this sham life of being a crusader? Much more evidence against Hamersley exists related to his fraudulent activities and will likely be disseminated over time. Comment by whistlewhat - January 21, 2009 at 12:55 pm

DEAR WEBEDITOR: The above comment by whistlewhat on January 21, 2009, at 12:55pm is yet another in a long line of recent libelous postings on your blogs. You should be aware that this person has been engaging in a widespread campaign of libel, slander, and other tortuous/illegal conduct aimed at impugning my reputation, including a substantially similar comment to my employer. Please review your obligations to remove such libelous commentary from your blog under existing cyber caselaw interpreting New York Times Co. v. Sullivan, 376 U.S. 254 (1964) See, e.g., Stratton Oakmont, Inc. v. Prodigy Services Co. PLEASE ALSO PRESERVE ALL ELECTRONIC INFORMATION REGARDING THIS POSTING AND THE IDENTITY (e.g., IP ADDRESS) OF WHISTLEWHAT.

Thank you for your prompt attention to this matter. Sincerely, Mike Hamersley TO WHISTLEWHAT: If you really believe your allegations are true, why not just stop hiding on blogs, indentify yourself, and discontinue your cowardly anonymous pot shot campaign. I sincerely welcome the opportunity to discuss your allegations with you any time you like. I would be glad to bring my tax returns and any other supporting information you like. I ask only one request: that you bring with you all of the documents and information that you believe support your outlandish allegations, because, frankly, I have idea what you are talking about. Comment by Michael Hamersley - January 21, 2009 at 5:19 pm

Hamersley, too bad lying on a blog or television like you do is not a crime. You government thieves know the law to well. I have copies of KPMG emails which unabashedly prove you committed tax fraud of a magnitude that makes BLIPs (a technically valid strategy) look like kindergarten. You advised a client to sell the stock of a subsidiary for one dollar to the clients lawyer as the final step to obtain a paper tax loss on a liquidation reincorporation transaction and advised said client that if they did so they would have a 20% to 30% chance of success upon audit. Now since you are such a tax expert you knew such act could have no economic substance and was a complete sham. You further, reviewed documents in June of 2000, effecting your fraudulent advice back to 1999. It is all in the emails, you lying scam artist. In fact the very crime you accused KPMG of committing in your lawsuit related to Occidental Petroleum is much similar to your fraud notwithstanding KPMG was not even the auditor when Occidental entered into its transaction as it happened 3 years prior to KPMG becoming the auditor. I have several witnesses that have testified that you informed them you were taking an aggressive position on your tax return for the KPMG settlement contrary to case law under Section 104, even if you did not ultimately do it, just talking about it with others is Conspiracy to commit Tax Fraud you lying thief. For sure you violated Section 7216 when you disseminated confidential taxpayer information to your wife and other parties. You are a lying criminal and the truth will prevail. You stole many emails and other information late at night from KPMG and as you know several witnesses exist to this fact also, if you lost all the emails ask KPMG for them as KPMG still has them. Does the name PYSA ring any bells you lying thief. Uh, also, slander and libel dont apply in the same way to public figures like yourself, thanks to all the false publicity you obtained from your fraudulent crusade. In fact, you should report yourself to the DOJ for conspiracy to commit tax fraud, the statute is still open back to 2000 as you just committed another act in furtherance of the conspiracy with the lies you just posted. You destroyed many lives with your false crusade to mask your intellectual depravity, many would be more than happy to testify against you in a truthful manner. I would release the emails but unlike yourself, I do not want to be in criminal violation of Section 7216, a law for which a scumbag like you has no regard. I am working with KPMG to get the emails legally released (a concept you know nothing about) and once accomplished, lets go on Frontline for the world to see what a malevolent liar you are not to mention I can line up at least 30 witnesses to

confirm every word I have said. Good luck dude, the truth will prevail (a concept that seems to escape you). Comment by whistlewhat - January 21, 2009 at 6:38 pm Blog Editor: You really need to monitor this blog more thoroughly, remove these comments, and ban this persons abusive use of the blog. This person is becoming increasingly angry and possibly dangerous. Whistlewhat: Your comment speaks for itself. Your statements are patently absurd. I am not going to disgnify it with a response, other than to tell you that you are digging your hole even deeper with this latest postingit appears KPMG and others may now have claims against you. Since you say you are working with KPMG, I suggest you send them a copy of this blog. I will. I also suggest that you immediately discontinue this behavior and get yourself a good lawyer if you choose otherwise. Finally, the tone of this latest email is nothign short of threatening. If you continue to behave in this manner, I will also seek a restraining order and have authorities contact you regarding your intentions. Comment by Michael Hamersley - January 21, 2009 at 7:22 pm Whistewhat: I will not respond to any further comments you post. Comment by Michael Hamersley - January 21, 2009 at 7:23 pm Hamersley, the cowards response. Of course a coward like you would feel threatened with the truth. Is that all it takes for a sniveling coward to feel threatened? You have nothing to fear from me, as I am only interest in exposing you for the scam artist you are with the truth. People of your ilk are of no concern to me but I do love it when your ilk feigns fear for all your cowardly acts being exposed to the truth. Fear me not dude, I only seek the truth, nothing else. Admit your malevolent activities and I will stop these stupid posts or perhaps, I will see you in court one day or I will go to the grand jury with all my emails and witnesses in tow since your perpetuation of the lies extends the conspiracy statutes, nothing else. Uh by the way, restraining order, you addressed me and I responded not the other way around, I would never waste my time or energy directly contacting or having anything to do with scum of your order. Comment by whistlewhat - January 21, 2009 at 7:52 pm