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Fax sent via hellofax.com From To Jordan Gail Number of pages 4 Message These documents show a gang member confessing to a burglary ordered by Carlos Gracie Jr. Carlos gives the orders, Poppa John commits the crime. This is the same Carlos Gracie Jr that is currently targetting my dojo. DECLARATION OF N I, John M. Gorman, declare: 1. [have personal knowledge of the information and the facts stated below. If called upon as a witness, [ could and would competently testify as follows: 2. _ On Sunday, Nov 20, 2005, I was in Washington, DC and received a call from Carlos Gracie, Jr. (“Gracie”). Gracie called me from Rio di Janeiro, Brazil. He informed me that Gracie and his partner were “quitting their business with Jimmy Liu” (Liu). He further asked me to help save the students that he had built up. Iwas hhonored and delighted that I could assist my teacher Gracie when he asked me. Since he asked me to come to Orange County, California right away, T immediately cleared my calendar and in less than three hours and was on my way to Los Angeles, California. 3. That evening, Sunday, November 20, 2005, I arrived in Los Angeles, California. 1 was picked up at LAX by assistant instructor and business partner of Gracie, Marcio Feitosa (“Feitosa”) and then we procedded to John Wayne Airport to pick ‘up still another assistant instructor and business partner of Gracie, Andre Fernandez Machado (“Machado”) (collectively “Gracie Associates”). 4. From the John Wayne airport, I drove with the Gracie Associates to the Gracie Barra School in Lake Forrest, California (the “School”). During the ride, 1 was informed by the Gracie Associates that Liu had changed the locks on the building. Since L barely knew Liu, but knew Gracie, Feitosa, and Machado well, I had no reason to doubt them when they asserted that it was Gracie’s school. 5. [and the Gracie Associates arrived at the School around 9 PM (it could have been an hour or so either way, I was operating on east coast time.) While outside the School, the Gracie Associates showed me that they had been wrongly locked out and that they needed to get back into their school to at least get their belongings. 1 recommended that since Gracie owned the facility, that we should call a locksmith and. simply change the locks again. The Gracie Associates said we could do that tomorrow, but that they needed certain files immediately. 6. Feitosa stated that he wanted to break the lock with a crow bar, but I said it would damage their property which they would need after we got the school back the next day. After looking at the building again, I asked them if the window above the front entrance was locked? We needed a ladder to reach the high window. At that point, I called one of Gracie’s local students that I knew would have a ladder, and asked him to bring it to the school. Using that ladder, | tried the window and found it unsecured. I opened it and entered the building and went downstairs and opened the door from the inside. ub Lak Feitosa and Machado entered the building and went straight to a file cabinet located just behind the desk. Feitosa and Machado took a number of files. Both Feitosa and Machado stated that they were most concemned about recovering the files containing all original contracts between the students and the academy (“Student Contracts”). Accordingly, Feitosa and Machado took a number of documents that they asserted to be the Student Contracts. Furthermore, they talked about taking other stuff from the facility, but I said no, as it seemed inappropriate since we were coming back the next day. However, the Gracie Associates took a belt and a few little items. 7. After acquiring the files, the Gracie Associates left the academy. I locked the door back from the inside and went back out through the window and down the ladder. Other than the items taken, there was no damage to the facility and I thought that ‘we would be back over in the morning to straighten out the confusion and reoccupy the school, 8. Off and on, during all of this, Gracie was on the cell phone with Feitosa. According to Feitosa, Gracie was directing and communicating the scope of the operation via cell phone/radio communication and was informed at all times of what was transpiring. 9. While leaving the School, Gracie talked to me again via Feitosa’s Radio/Cell phone and said, “Thank You Papa John for helping us save our school.” At the time, I thought I was helping my teacher get his schoo! back. 10. On Tuesday, November 22, 2005, Gracie and the Gracie Associates stated that we were not going back to the location. At that time, I found out that Gracie, Feitosa, and Machado had left out significant information regarding the School, as well as misstating facts regarding Liu and Gracie’s alleged ownership. Accordingly, I attempted to negotiate a resolution to the situation which was unsuccessful 11. Shortly thereafter, Gracie did start a competing schoo! in close proximity to the School. 12. Starting on November 19, 2005, Gracie and the Gracie Associates contacted Liu’s students to inform them of Gracie’s new school. After contacting Liu’s students, Gracie and the Gracie Associates assisted Liu’s students with breaking the ‘Student Contracts with Liu and the School. 13. Gracie, Feitosa, and Machado knew on or before November 19, 2005 that Liu owned the schoo! and the Student Contracts, and that their true purpose of entering the School was to recover Liu’s Student Contracts so Gracie and the Gracie Associates could start a new and competing school in the area, and to injure the School and Liu. Gabe 14, Itwas not until some time later that I found out that Liu actually owned the School, Gracie was not an owner, Gracie was an instructor/employee, and the Gracie Associates were only employees. I declare under penalty of perjury that the foregoing is true and correct and that this Declaration was executed on this 11" day of September)! 1, 2007, in Atlanta, GA. STATE OF GEORGIA COUNTY OF COBB: On _ 9/4) 2007, before me, Tahiely AWeme dt OF » personally appeared JOHN M. GORMAN, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. (Seal) Notary ‘Notary Public DeKalb County Georgia My Commission Expires August 14 2009

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