Memorandum

To: Manuel Maribal Cc: AGIF National Commander Francisco Ivarra AGIF National Executive Board Re: Hispanic Technology and Telecommunications Partnership Da: October 21, 2009 Dear Mr. Maribal, For the record, our goal in any inquiries on the HTTP is to protect the interest of the AGIF Vet-Hire Program and the AGIF. While we have presented good faith request for information from our previous AGIF National Commander, little and or no respond has been provided on this matter. After contacting the National Puerto Rican Coalition, and making some inquiries with Rafael-I agreed with him, that the AGIF has had a historical issue with mismanagement of funds. As I conveyed to Rafael, and I will to you as well; the present AGIF administration is out to set precedence; and the BUCK will stop here. To the extent, of Rafaels comment, it is true the AGIF has had problems with the leadership being accused of mismanagement of funds; but this environment is also perpetuated by OUTSIDE corporations and individuals willing to take advantage of the AGIF. This also will stop. Having said this Mr. Maribal as you know, I am conducting inquiries into the HTTP program and its relationship with the AGIF Vet-Hire program; and there are numerous questions left unanswered. To come to a fair and impartial analysis of the information obtained including information regarding the parties involved; who they are and who they represent will allow for an eventual determination for the purpose of drawing an inference of whether any existence of wrongdoing has been committed. Mr. Maribal this would include, if necessary, having legal counsel represent the AGIF on this matter. Before, you jump off the cliff, again; I stated if necessary; the if necessary will only be considered only if you do not want to cooperate and submit responses to our request on a timely basis. As you have presented through the HTTP banter, we are in a new technology of broadband; so therefore, the information we will be requesting should not be that difficult for you to obtain. Mr. Maribal, I have conducted a background inquiry of your affiliations; and I take note that you are well recognized in your area and I respect this. Also, I see no reason why with as much expertise and background such as yours, you would not understand why the AGIF is making such an inquiry and requesting specific information.

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

I am also well recognized in my work on civil rights and legislative policy making, so therefore; I will ask that you provide me with the same respect as we move forward on this matter. Additionally, as I have asked you during our discussions, please do not undermine my own intelligence by engaging in an exchange of semantics and attempts to confuse the issue by twisting the wording used to address these issues. On behalf of the AGIF, I am submitting to you the following questions; at stake is what was represented to AT&T through your grant proposal and other matters related to the transition of the HTTP and its relationship with the AGIF Vet-Hire Program: 1. The grant proposal submitted to AT&T notes that HTTP was established in 1996 by you; however, as you disclosed to me that the AGIF Vet-Hire was just a pass through for the funds the HTTP received from AT&T. As you know, a pass through agency actually means the fiscal agent representing the receipt of any funds, in this case; funds going to HTTP though the AGIF Vet-Hire program. If HTTP was established in 1996, why didnt you ever establish the HTTP as a 501 (c) (3) organization? ANSWER: When did you actually leave the HTTP program? ANSWER: Why was it necessary for HTTP to house its office in the AGIF Washington DC office, located at 1444 I Street, NW Suite 810, Washington, DC 2005. 2. It is our understanding that ASPIRA, LULAC, and the NPRC jointly submitted a collaborative quotation with the ASPIRA association to serve as the fiscal agent for HTTP. If this is true, it would make it appear as though the AGIF was paying rent for an office that was housed by HTTP and rented out to the AGIF; however, the AGIF is now being billed for several months worth of rent that is allegedly owed by ASPIRA. Are you aware of ASPIRA and the other organization becoming the fiscal agent for the HTTP? If so, please explain in detail; including but not limited to, when they became the fiscal agent. ANSWER: If ASPIRA and the other organizations are not the present fiscal agent for HTTP, to your knowledge who is? 2
Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

ANSWER:

3. In your grant proposal to AT&T you requested a two year grant in the amount of $200,000.00. The first portion of the $200,000.00 a $100,000.00 check (AT&T Check No. 3311060810) from AT&T was sent and payable to the AGIF Vet-Hire Program. In your grant proposal you divided the $200,000.00 requested funds as annual budget amounts of $100,000.00 as follows: HTTP Management (Contracted) $48,000 HTTP/MMTC Policy Fellow $20,000 Policy Briefing (4 per year) $12,000 Admin/Misc. Costs (20%) $20,000 Total Annual $100,000 I am sure you have received a copy of the HTTP accounting expenses from the AGIF Treasurer Danny Morales. Please use this documentation to present your answers to the following questions: Will you please identify the times of the year for the which the $20,000 was allocated for Policy Briefing meetings; including but not limited to: who was present (names, titles, and representative organization) at the briefing meetings; the dates and place of the briefings; and an explanation of what was discussed at these briefing (minutes of the meetings would be preferable-since you did have a Board and minutes should have been taken). Provide receipts and documentation which you are relying upon to support your answer. ANSWER: Identify each and every HTTP management official and or agent who was contracted for the allocated funding of $48,000.00; including but not limited to: name, address, position, and representative organization; what services did the individuals perform; what was the goal and outcome of the services performed; and from what periods of time did the individual perform such services. Please provide a copy of the contracts; receipts for payment and or canceled checks upon which you will rely upon to support this answer. ANSWER: For the $20,000 allocated funding for Administrative/Misc. Costs, please provide receipts and or cancel checks which will you will rely upon to support you answer. ANSWER:

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

4. You submitted a written statement of an alleged agreement between you, Founding Chair of HTTP and Antonio Morales, previous AGIF National Commander AGIF; which you contend, and correct me if I am wrong; gave you complete authority on which you acted on. The agreement, signed June 1, 2008, simply states the following: The management of HTTPs program will be performed by the HTTPs Founding Chair. The policy research and website management will be performed by the HTTPs Founding Director. Is the Founding Director and Founding Chair, one in the same; which is you, Mr. Maribal? If not, identify the Founding Chair and the Founding Director of HTTP at the time this agreement was signed. ANSWER:

Would you agree this Agreement refers only to management of HTTP but not the oversight of HTTP? ANSWER: Would you agree that this agreement has no acknowledgement by the AGIF National Board to give you any authority of management or oversight? ANSWER: How long have you known about the organization the AGIF? ANSWER: Were you aware the AGIF was governed by a Board of Directors? ANSWER: Have you ever served on a Board of a non-profit organization? ANSWER: Are you aware of the administrative procedures a Chair and or CEO of an organization and or corporation must go through prior to entering into a contract and or agreement with a third party? ANSWER:

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

5. Since you have disclosed that the AGIF Vet-Hire Program was a pass through (fiscal agent) for funds for the HTTP. Then you are aware that Antonio Morales, as the AGIF National Commander: a. Must have obtained permission from the AGIF National Board for any organization and or third party to use the 510 (c) (3) status of its umbrella program the AGIF Vet-Hire Program; and b. Must have had permission from the AGIF National Board to enter into an agreement with any third party and or organization. As I stated earlier, I respect your position and past work; therefore, I find it surprising that you, as you disclosed to me; should have known better. During the period you signed the Agreement between Antonio Morales June 1, 2008 through August 2009 and period of the allocation of the $100,000 grant received from AT&T by the AGIF Vet-Hire Program did you: Work for Tonio Burgos and Associates, if so please identify the period of times. Answer: Is Tonio Burgos and Associates affiliated with the lobbying firm of Wexler & Walker Public Policy Associates? Answer: Did you ever meet with any corporate representatives associated and or affiliated to the telecommunications business; which includes but not limited to corporations and or companies that provide broadband services. Answer: Did you ever meet with any congressional and or legislative representative and or liaison to discuss the telecommunication broadband issue; including but not limited to Senate Judiciary Subcommittee, and or the FCC? Answer: Did you during the period of the grant, send out information and or position statements on the wireless market and or broadband economy? If so, please identify each and every individual, company, federal agency, elected official and or corporation; their title/position, address, and telephone; and provide copies of any and all written documents sent to these individuals. ANSWER:

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

Mr. Maribal the reasons that the questions above are asked is because of the possibility of the existence of a conflict of interest; as Tonio Burgos and Associates represent several telecommunications entities, such as Verizon. Secondly, one must ask the question whether AT&T who provided you the grant benefited from your work on the telecommunication broadband issue. Thirdly, there is a potential of appearance of using the funds obtained from AT&T for lobbying purposes. Mr. Maribal, when you used the phrase pass through for funds in characterizing how the AGIF Vet-Hire Program was used to obtain the $100,000.00 grant from AT&T; as you know this phrase is commonly used in the non-profit world to identify in proper terms what is a fiscal agent. So thus, lets avoid any argument about semantics and be honest, and admit that the AGIF Vet-Hire Program was used as the fiscal agent to obtain the grant on behalf of the HTTP from AT&T. The following is language taken from the IRS identifying the meaning of what a fiscal agent is: What is a Fiscal Agent: A 501(c) (3) nonprofit organization that agrees to accept funds on behalf of an individual or organization that does not yet have tax exemption. Individual and organizations that do not have tax-exempt status at the time of application must employ a tax-exempt organization to serve as a fiscal agent. The fiscal agent is legally responsible for the completion of the project and for the proper management of the grant award. In a typical arrangement, the non-exempt organization solicits grants or donations, donors make out their checks to the tax exempt sponsor, and the sponsor pays expenses on behalf of, or makes a grant to, the non-exempt organization, often taking a percentage of the donation to cover overhead expenses incurred. Therefore, within the meaning of the IRS, the AGIF Vet-Hire Program, was the fiscal agent who allowed HTTP, a program who was not established as a 501(c) (3) status apply for a grant to AT&T under the auspices of the AGIF Vet-Hire Program, a 501(c) (3) nonprofit. The AGIF Vet-Hire Program essentially the regranting program for grant awards (AT&T) to specific pre-approved organizations, such as the HTTP, must have used the grant funds for purposes directly related to the AGIF Vet-Hire Program as they appear in its Articles of Incorporation. Under the IRS meaning of a fiscal agent, the AGIF Vet-Hire Program is required to accept programmatic and fiscal responsibility for the applicant and the project, in this case the HTTP. To meet IRS standards, for a fiscal agent, set forth in Revenue Ruling 68-489, 1969-2 C.B. 210: a. Funds must be used for specific projects in furtherance of the AGIF Vet-Hire Programs own exempt purposes;

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

b. The AGIF Vet-Hire Program must retain control and discretion as to the use of the funds; c. The AGIF Vet-Hire Program must maintain records establishing that the funds were used for section 501(c)(3) purposes; and d. Fiscal Agents, such as the AGIF Vet-Hire Program in accordance with IRS policies will not, and will not permit their sponsored projects, such as HTTP, to participate or intervene in any political campaign on behalf of (or in opposition to) any candidate for public office, or otherwise engage in then carrying on of propaganda (within the meaning of section 501(c) (3) of the Internal Revenue Code of 1986). The recipient and/or sponsored organizations, such as HTTP, are also responsible for abiding by the law as defined in the same section of the Internal Revenue Code. 6. Mr. Maribal, you can disagree with the interpretation given above; however, by IRS policy ALL indications establish that the AGIF Vet-Hire Program was used as the fiscal agent for the HTTP. The IRS Form 1023 submitted to the IRS establishes that the governing body for the AGIF Vet-Hire Program is the AGIF National Board; therefore, any sponsored programs, such as the HTTP, is under the authority and jurisdiction of the AGIF National Board. Therefore, the agreement you and previous AGIF Commander Antonio Morales, on face value is theoretically an illegal document; as it has no AGIF National Board approval and or acknowledgment of signature. Further, IT IS essential for the AGIF to determine how the $100,000 grant from AT&T was spent and how did it advance the goals and mission of the AGIF Vet-Hire Program.

Mr. Maribal from 1996, the time you established the HTTP did you ever apply for an EIN and 501 (c) (3) with the IRS? If so, when did you apply for these items and where is the present status of these applications? ANSWER: Mr. Maribal at the time you signed the agreement with AGIF Commander Antonio Morales in June 2008, did the HTTP have its own EIN and 501 (c) (3) statuses? ANSWER: Mr. Maribal did the AGIF Commander Antonio Morales receive and or obtained any percentage of the $100,000.00 funds you obtained from AT&T? If so, what was the amount, please provide any and all documentation on which you relied upon to support your answer to this question.

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

ANSWER: Mr. Maribal did the AGIF Vet-Hire Program receive and or obtained any percentage of the $100,000.00 funds you obtained from AT&T? If so, what was the amount, please provide any and all documentation on which you relied upon to support your answer to this question. ANSWER: Mr. Maribal, please explain in full and complete detail; including but not limited to specific examples, of how the HTTP in any form or manner advanced the mission and goals of the AGIF Vet-Hire Program, please provide any and all documentation on which you relied upon to support your answer to this question. ANSWER: Mr. Maribal, please explain in full and complete detail; including but not limited to specific examples, of the benefits and results of the expensed $100,000.00 grant received from AT&T, please provide any and all documentation on which you relied upon to support your answer to this question. ANSWER: Mr. Maribal, please identify any and all organization who benefited financially and or otherwise from the work performed from the $100,000.00 grant from AT&T; if financial benefit was gained, identify the organization and the amount the organization received, please provide any and all documentation on which you relied upon to support your answer to this question. ANSWER: Mr. Maribal, some of the questions above; you have answered indirectly and I have informed the AGIF National Executive Board of our conversations and your answers you provided. You can either reply and or ignore this request for information. There is nothing in this document that does not pertain to financial accounting and the administrative structure of the HTTP and the use of the AGIF Vet-Hire Program. Mr. Maribal, the AGIF National Executive Board is the deciding body of what they intend to do; however, I would suggest to the AGIF National Executive Board to consider the following, if you fail to cooperate in good faith providing the requested information above and the previously requested information: a. Send AT&T a copy of the HTTP bank account showing the expenditures you expensed out of the $100,000.00 grant;

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information

b. Send AT&T a copy of the check received through the AGIF Vet-Hire program; c. Send AT&T a copy of these questions and previously requested information; d. Send the FCC a copy of these questions, previously requested information and a copy of the HTTP bank account; e. Send the IRS a copy of these questions, previously requested information and a copy of the HTTP bank account; and f. If needed, hire legal counsel. It is my position that you will not reply to this request for information. Mr. Maribal you could at your own discretion present to AGIF Commander Francisco Ivarra a proposal to resolve the matter without any further actions being taken. However, this would not waive any rights the AGIF Executive Board has in taking any actions against past and or present AGIF Officers for any misconduct associated to this matter. Thank you in advance. Respectfully, /s/Peter Vallecillo AGIF National Civil Rights Director

Maribal, Manuel Memorandum Oct. 21, 2009 Request for Information