D. B. Karron, Ph. D. 348 East Fulton Street Long Beach, New York 11561 E-Mail to drdbkarron@gmail.

com Facsimile +1 (516) 308 - 1982 Voice +1 (516) 515 - 1474 Monday, June 04, 2012 at 05:54:31 Hours The Honorable Catherine OHagan Wolfe Clerk of Court United States Court of Appeals for the Second Circuit 500 Pearl Street New York, New York 10007 Re: No. 11-1924 United States of America v. Karron Dear Ms. Wolfe: The Appellant-Defendant Karron respectfully submits this letter response pursuant to FRAP. 28(j) replying to the Governments letter of June 1 to this Court. That letter raises three points allegedly supported by the May 4 Opinioni of the Patterson District Court: 1) The payment of $18K of rent payments to Karron from the $150K initial Working Capital Advanceii. We argue in the Karron Reply Brief that the rent was a. (offset) independently absorbed into Karrons overfunding by bona fideiii salary iv b. re-classified as and is bona fide salary.v 2) The May 4 Opinion misconstrued Karrons argument that unspecified[] discrepancies.vi in GX114vii makes the evidence unreliable. If GX114 is reliable then that May 4 Opinion supports Karrons contention of a re-classification.viii 3) The Government attempts to raise by footnote the contradiction that if the auditors reclassified the $18K as Salary it would then violate a 30 day float rule. See noteix. Karron's over funding of the first quarter direct and indirect costs in the amount of $78,204x xi with bona fide salary, offsets the Governments bid to coerce a linkage of the $18K payments as knowingly misapplied rent from the projects $150K capital cash advance. There are only xii 53 checks paid to Karron in the first project year from CASI. The GX110 schedule groups 15 checks totaling $129,850 as loan xiii, 7 checks from Karron for $37,000 as loan repayments, 8 checks to Karron for $35,293.58 as net payroll, and 30 checks marked as rent net for $60K. Nine of these checks totaling $18K were written in the first project quarter period. GX110 gives the first year period sum of checks to and from Karron as $188,143. GX114 calls out the first year Karron salary as $200,488 and $19,183 as fringes for a gross salary $219,671. The rent and 14% fringesxiv xv xvi on the checks marked rent must be included as salary in order to sum up to the denominated salary in GX114xvii. The loan checks were considered as bona fide salary advanced from the grant working capital advance.xviii The checks to Karron with memo annotations of rent in GX110 schedule were similarly corrected and correctly re-classified into bona fide salary in the GX114 analysis. Q.E.D.

While each of the argument of fact (offsetting and re-classification) alone is sufficient to refute culpability, the two facts together are doubly exculpatory. Therefore, on both or either basis in fact, the Summary Judgment of the Buchwald Court must be vacated Respectfully Submitted,

D. B. Karron pro se Defendant-Appellant Cc: Michael J. Byars, AUSA by e-mail to Michael.Byars@usdoj.gov

CITATIONS
i

Karron v. United States, Nos. 07 Cr. 541 (RPP), 11 Civ. 1874 (RPP), 2012 WL 1570849(S.D.N.Y. May 4, 2012) (May 4 Opinion). ii June 1 Letter at 1 Paragraph 2 iii SPA-32 18 U.S.C. 666. (Theft or bribery concerning programs receiving Federal funds) [] (c) This section does not apply to bona fide salary, wages, fees, or other compensation paid, or expenses paid or reimbursed, in the usual course of business. (Safe Haven Provision) iv see Karron Reply Brief Point 8 v see Karron Reply Brief Point 6 and below vi The Patterson Courts out of hand dismissal of the "discrepancies" in GX114 is like denigrating fingerprints as smudges. The rent appears as a separate line item; being counted twice in the sum. The GX114 line items do not add up and can't add up because of the double counting discrepancy: vii Government Letter of June 1, at 2 citing Patterson District Court Opinion 2012 WL 1570849, at *8 viii If it is unreliable then that finding should have triggered a 2255 review. ix Please see the Karron Reply Brief Point 2 at 8 and Point 5 at 12. x A-415 (SF-269a This is a corrected and revised final Statement for this 4th project Quarter.), A-452 (Decl. of Dunlevy, Section J, Discrepancies), A-453 ( (Decl. of Dunlevy, Amended SF 269 A Report of Spending), A-455 (Decl. of Dunlevy, Co-Funding and Co-Funding discrepancies) xi A-398 (GROUND TRUTH QUARTERLY SPENDING BY REVISED SF269A) xii KA-282 to KA-284 GX110 Karron Appendix Volume 1 xiii KA-282 xiv KA-598, Trial Transcript at 197 line 17 et seq xv A-259, Sentencing Transcript at 4, Paragraphs 1 and 2 xvi A-271, Sentencing Transcript at 15 line 13 to 15 xvii A-262, A-392, A395 xviii See Karron Brief Point 1 at 7.