Nov. 7, 2008 Rep. Curt Schroder 3760 East Fisherville Rd. Downingtown, PA 19335 Dear Rep. Schroder: My name is Joseph T. Carduff. I am a political consultant from Camp Hill and I specialize in opposition research. On Jan. 20, 2008, I met with Rep. John Perzel hoping to retum to politician consulting after two years of illness and incarceration brought on by my addiction to alcohol which is now under control. | offered my particular professional services to Perzel and he agreed to begin a relationship. We agreed to a 2,000-a-month fee plus expenses going forward. After this very brief discussion I met with Paul E. Towhey Jr., Rep. Perzel’s chief of staff, and Mr. Donald Raymond of Raymond, Cliggett and Raymond, Inc. After introductions, I was directed to begin several full scale opposition portfolios of current House members. While Speaker Dennis O’Brian and Rep. Josh Shapiro were two ‘members I expected to be on the list, I was quite surprised when Towhey directed me to examine the following House Republicans: Minority Leader Sam Smith Rep. Mike Turzai Rep. Jim Cox Rep. Will Gabig Rep. Kerry Benninghoff Rep. Scott Perry Rep. Brad Roae Rep. Sam Robret Rep. David Steil And yourself, Rep. Schroder While I understood the reasons for selecting you and your colleagues, I was still perplexed. As you can see from the attached on Feb. 21, 2008, I billed RCR, Inc. $2,000 for the agreed research.Page 2 The next day I faxed from Perzel’s Harrisburg office the invoices and the attached letters to the House chief clerk’s office to Towhey at Perzel’s Philadelphia campaign office and Raymond’s offices. On Feb. 29, 2008, Perzel’s PAC paid Raymond $25,000 for consulting services, which included my $2,000 fee. ON March 5, 2008, RCR mailed mea check for $2,000. After receiving the payment I began examining the remaining House members. During this time, Towhey kept postponing further payments to me. I told him that I would withhold and delay research until we, both parties, were even conceming compensation. ‘Two months later, with almost all research completed, Towhey directed me to request Perzel’s legislative records. His reasoning being that if the targeted Republicans complained, Perzel could say that he too was a target and that Perzel could stop me. I told Towhey my 5-year-old niece was smarter than this, but if that’s what he wanted, it could be done. Believe me, having worked for Perzel for almost 20 years, I know he knows on a daily basis what his legislative expenses are. On May 6, I mailed another invoice to Raymond for $2,000. As the attached shows on. May 13, 2008, Perzel’s PAC sent $2,000 to RCR. That day RCR sent me a check for $2,000. On May 27, 2008, I mailed an invoice to Raymond for $2,000. | informed Perzel, ‘Towhey and Raymond | would settle the account for this $2,000 fee and tum over my research of the House Republicans. At this time several Republican members told me how Towhey was bragging how he had the book on those 10 Republicans. He told one colleague that he would prove Leader Smith had been helping Rep. Benninghoff boost his per diem payments to bail Benninghoff out of his divorce problems. I found this particularly disgusting because Benninghoff has a very ill child. After finding out about Towhey’s plans, I told he and Perzel to pay me or I would inform those House members he had directed me to examine of his plans and then sue Towhey, Perzel and Raymond for my $2,000 unpaid fee. | called Raymond and left a message for him according to my complaint. I texted Towhey the same message. Raymond called back to say I was attempting to black mail them. Over the summer I informed several of Towhey’s targets of my mission and its details. 1 also spoke to law enforcement officials and a lawyer about how Perzel, Towhey and their associates conspired to do through third parties what are questionable political activities.Page 3 On Sept. 26, 2008, I received a letter from Perzel’s lawyers threatening me with civil or criminal consequences if I did not stop discussing my past and current relationship with Perzel. This letter has been forwarded to authorities. Thave filed a writ of assumption concerning the disputed $2,000 fee. look forward to the matter being legally resolved. Cpa bf Yoseph T. Carduf