1 Theodore S. Flier, Esq.

State Bar No. 23734

2 Andrew Reed Flier, Esq.
State Bar No. 137372
3 FLIER AND FLIER
15250 Ventura Blvd., Ste. 600
4 Sherman Oaks, California 91403
(818) 990-9500
5 Fax: (818) 990-1303
6 Attorney for Defendant
LENNY DYKSTRA
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8 SUPERIOR COURT OF THE STATE OF CALIFORNIA
9 FOR THE COUNTY OF LOS ANGELES
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11 THE PEOPLE OF THE STATE OF ) CASE No. PA070678
CALIFORNIA, )
12 ) NOTICE OF MOTION AND MOTION
Plaintiff, ) FOR ORDER WITHDRAWING PLEA
13 ) OF GUILTY; MEMORANDUM OF
vs. ) POINTS AND AUTHORITIES;
14 ) DECLARATION OF ATTORNEY
LENNY DYKSTRA, ) ANDREW REED FLIER
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) DATE : March 5, 2012
16 Defendant. ) TIME : 8:30 a.m.
) DEPT : “G”
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18 TO THE DISTRICT ATTORNEY OF LOS ANGELES COUNTY AND/OR HIS
19 REPRESENTATIVE DEPUTY DISTRICT ATTORNEY: ALEXANDER KARKANEN
20 PLEASE TAKE NOTICE that on March 5, 2012, at 8:30 a.m., or as soon thereafter
21 as the matter may be heard in Department “G” of the above-entitled court located in San
22 Fernando, California, the defendant, LENNY DYKSTRA, will move this court for an order
23 withdrawing and vacating his earlier plea of “no contest” to Counts 13, 15, 17 and 20 of
24 the felony complaint.
25 This motion is made on the grounds that Mr. Dykstra did not enter into his plea of
26 “no contest” knowingly, intelligently, nor of his own free will. This motion is based on
27 this notice of motion, the attached declaration of Andrew Reed Flier, the memorandum of
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 points and authorities served and filed herewith, on the records on file in this action and on
2 such oral and documentary evidence as may be presented at the hearing of this motion.
3 Dated: February 23, 2012 FLIER AND FLIER
A Law Corporation
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5 By:
ANDREW REED FLIER,
6 THEODORE S. FLIER
Attorneys for Defendant
7 LENNY DYKSTRA
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 MEMORANDUM OF POINTS AND AUTHORITIES
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3 I
4 STATEMENT OF FACTS
5 The defendant, Mr. Dykstra, was charged in the felony information with violating
6 20 counts of the Penal Code [Penal Code section(s) 664/487(d) - 5 counts; 532(a)(1) - 8
7 counts; 530.5(a) - 4 counts; 487(d)(1) - 3 counts], 3 counts of the Health and Safety Code
8 [Health and Safety Code section(s) 11350(a) - 2 counts and 11377(a) - 1 count]; and 2
9 counts of the Business and Professions Code [Business and Professions Code section(s)
10 4060 and 4140]. The defendant, Mr. Dykstra, entered into a plea on this matter on October
11 19, 2011 to Counts 13, 15, and 17 and 20 for a maximum “lid” of four years. Mr.
12 Dykstra served almost six months of actual custodial time on this case. Further, My.
13 Dykstra did not have adequate access to prepare for his matter.
14 II
15 UPON A SHOWING OF GOOD CAUSE, THE COURT
16 MAY ALLOW A DEFENDANT TO WITHDRAW HIS OR
17 HER PLEA
18 California Penal Code section 1018 states in relevant part:
19 “. . . On application of the defendant at any time before
20 judgment . . . , the court may, . . . , for a good cause shown,
21 permit the plea of guilty to be withdrawn and a plea of not
22 guilty substituted. . . .”
23 Mr. Dykstra understands all of the consequences that could result if his earlier plea
24 is vacated. Mr. Dykstra, if he does not prevail on his case, will accept all of the associated
25 consequences.
26 “Where the facts establish that counsel was ignorant of facts or the law and it
27 appears that such ignorance caused the withdrawal of a crucial defense, his client is entitled
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 to relief.” (People v. Stanworth (1974) 11 Cal.3d 588, 612.)
2 Moreover, courts should not deny withdrawal of a plea of
3 guilty where it is evident that the interests of justice would be
4 better served by permitting the defendant to plead not guilty
5 instead. The least surprise or influence causing a defendant
6 to plead guilty when he has any defense at all should be
7 sufficient cause to permit a change of plea from guilty to not
8 guilty. (People v. Hunt (1985, 2d Dist) 174 Cal.App.3d 95,
9 106, referring to People v. McGarvey (1943) 61 Cal.App.2d
10 557 564.)
11 A defendant may not withdraw his/her plea just because they “changed his mind.”
12 (People v. Nance (1991) 1 Cal.App. 4th 1453, 2 Cal.Rptr.2d 670.) That is why a judge is
13 empowered with an enormous amount of judicial discretion when discussing this subject.
14 Judicial fairness and the promotion of an equitable result is the main criteria. This section
15 is to be liberally construed to effect these objects and to promote justice.
16 For this reason, the defendant, Mr. Dykstra, hereby respectfully requests that his
17 plea of “no contest” to the four indicated counts be set aside.
18 III
19 A PLEA OF GUILTY MAY BE WITHDRAWN FOR
20 MISTAKE, IGNORANCE, INADVERTENCE, OR ANY
21 OTHER FACTOR OVERREACHING A DEFENDANT’S
22 FREE AND CLEAR JUDGMENT
23 In People v. Dena, (1972) 25 Cal.App.3d 1001, 102 Cal.Rptr. 357, the court held
24 that:
25 “Where there was clear and convincing showing that the free
26 will and judgment of Defendant, . . . , were overcome by
27 extrinsic causes, . . . , it was an abuse of discretion for trial
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 court to deny his motion to set aside a plea of guilty.” [Id at]
2
3 V
4 CONCLUSION
5 Based upon the facts, law and arguments set forth above, the defendant, Mr.
6 Dykstra, hereby respectfully requests that Your Honor allow Mr. Dykstra to set aside his
7 plea of “no contest”, entered earlier on in this matter and allow Mr. Dykstra to substitute a
8 plea of not guilty instead and in place of the indicated “no contest” plea. Mr. Dkystra
9 understands that there are risks in vacating his earlier pleas of “no contest”. However, due
10 to the evidence discovered and the overall and immediate consequences that Mr. Dykstra is
11 facing, Mr. Dykstra is willing to accept all of the risks.
12 Dated: February 23, 2012 Respectfully submitted,
13 FLIER AND FLIER
A Law Corporation
14
15 By:
ANDREW REED FLIER,
16 THEODORE S. FLIER
Attorneys for Defendant
17 LENNY DYKSTRA
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 DECLARATION OF ANDREW REED FLIER
2 I, ANDREW REED FLIER, declare and state as follows:
3 1. I am the attorney for the defendant, Lenny Dykstra, in this matter;
4 2. On October 19, 2011, Mr. Dykstra entered into a plea of no contest to
5 counts 13, 15, 17 and 20. Mr. Dykstra pled to the four counts with a “open”
6 term of four years.
7 3. Mr. Dykstra was in custody at the time that he entered into his pleas. Mr.
8 Dykstra was originally arrested pursuant to this investigation on April 14,
9 2011. Mr. Dykstra was in custody for 7 days as to this initial arrest. Then,
10 Mr. Dykstra was arrested again on this matter on June 6, 2011. Mr. Dykstra
11 remained in custody on this matter continuously up until the day of his plea
12 on October 19, 2011. Therefore, Mr. Dykstra was in actual custody for over
13 160 days.
14 4. Mr. Dykstra was desperate and was never in custody before this
15 investigation. Mr. Dykstra’s phone privileges were limited. (See court file
16 pertaining to my law firm’s court order requests for phone privileges].
17 5. A thorough review of Mr. Dykstra’s two day preliminary hearing transcript
18 demonstrates significant contentions which support the defense position.
19 Examples of this are:
20 A. Mr. Gavanis was introduced to Mr. Dykstra by Mr. Hymers and by
21 Mr. Gavanis’ brother. (P. 105, L. 25-27).
22 B. Mr. Dykstra’s personal assistant emailed to Ford Mr. Gavanis’
23 paycheck stub. (P. 107, L. 6-17).
24 C. The vehicles taken from Ford were recovered. (P. 108).
25 D. The investigator does not know what a “Startup” company is. (P.
26 111, L. 1-2).
27 E. The investigator did not speak to a business consultant. (P. 111, L.
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 1 3-7).
2 F. The investigator did not check to ever see if $500,000 was put up at
3 the beginning to the “Startup” company.
4 A: I wasn’t interested in a startup company, sir. (Page ?, L. 8-14).
5 G. The investigator did not look into to see if money was in the
6 company. (P. 111, L. 15-19).
7 H. The investigator did not make a determination as to when the
8 “Startup” company was to report income.
9 A: No. (P. 112, L. 1-4).
10 I. The investigation started with Wilberto Hernandez. He was a good
11 friend of Mr. Hymers. (P. 114, L. 15-18).
12 J. The Defendant had a credit repair business which fell through as to
13 Mr. Hernandez. (P. 115) Mr. Hernandez did not get his fee. (No
14 fraud). (P. 116).
15 K. Mr. Hernandez was never provided any emails from Mr. Dykstra;
16 nor Mr. Hymers. (P. 117, L. 5-14).
17 L. Mr. Dykstra was upset that the detective did not know about his
18 company. (P. 120).
19 M. The detective does not know what a “Shell Company” is. (P. 121, L.
20 8-12).
21 N. Certain defense exhibits were introduced to demonstrate that the
22 corporation (“Homefree Systems, LLC”) did exist and was viable.
23 (Exhibits A-J). (P. 122-130).
24 O. The Detective was unaware that money was going into that
25 company. (P. 131, L. 23-26).
26 P. The detective had no idea how much money was in the company in
27 the beginning of last year. (P. 132, L. 2-5).
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 Q. $47,000 deposits were in the companies bank statement in
2 December 1, 2010. (P #4)(P. 133, L.14-18); (P. 134, 1-7).
3 R. There was a beginning balance in March 12, 2011 which indicated
4 deposits of $73,000. (P. 135-136).
5 S. The only thing that the detective discovered was that Mr. Dykstra
6 submitted the record for Bob Smith Toyota. The investigator had no
7 idea whom prepared them. (P. 138, L. 7-28, P. 139, L. 3-11).
8 T. The records submitted to the Cadillac dealer were by Mr. Hymers
9 through email. (P. 139, L. 15-22).
10 U. Dorothy, Mr. Dykstra’s manager, was involved off and on in
11 submitting emails. (P. 139, L. 20-26).
12 V. The detective never made an effort to determine whom prepared the
13 documents. (P. 141, L. 16-20).
14 However, now he is making that effort. (P. 141, L. 21-27).
15 W. The only thing I discovered was Mr. Dykstra submitted it. (As to
16 one dealership). (P. 138, L. 20-24).
17 X. The detective never made an effort to determine whom actually
18 created that financial statement. (P. 139, L. 3-11).
19 Y. Mr. Dykstra’s bookkeeper handles his financial affairs. (P. 140, L.
20 1-26).
21 Z. I am not saying specifically that Mr. Dykstra was aware of that
22 $90,000 pay stub. (P. 144, L. 7-11).
23 AA. Mr. Hymers told the detective that he did not have the intent to
24 defraud his best friend, Mr. Hernandez. (P. 163, L. 17-19).
25 BB. No witness or co-defendant or suspect ever told the detective
26 that anyone personally saw Mr. Dykstra preparing any
27 document or exhibits that have provided. (P. 177, L. 19-26).
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 1 CC. The two cars from Bob Smith Toyota never left the lot. (Page 177,
2 L. 17-26).
3 DD. The investigator has no information that Mr. Dykstra introduced Mr.
4 Hernandez to Mr. Hymers. (P. 182, L. 26-28).
5 EE. The detective never prepared a search warrant for any computer of
6 Mr. Hymers. (P. 184, L. 11-16).
7 FF. The investigation about Mr. Dykstra started approximately February
8 13, 2011. (P. 187, L. 25-28).
9 GG. With respect to all of the governments exhibits, there is no evidence
10 that Mr. Dykstra personally prepared them. (P. 188, L. 13-19).
11 HH. Three vehicles were purchased. Each defendant had one. (P. 189, L.
12 23-27).
13 II. Some payments were tendered as to these vehicles. (P. 191, L. 7-
14 14).
15 JJ. Mr. Dykstra told the detective about his “Startup” company. (P.
16 200, L. 26-28, P. 201, L. 1-2).
17 KK. Further, Mr. Dykstra told the detective that he had proof of over 200
18 potential clients. (P. 201, L. 7-17).
19 LL. The detective never even called Mr. Dykstra’s New York attorney,
20 Mr. Moshe Morten, about the “Startup” company. (P. 201, L. 21-
21 26).
22 MM. The detective never asked any salesmen about the value of these
23 returned vehicles versus when they left the lot. (P. 204, L. 22-25).
24 6. I was requesting from Mr. Dykstra and his business manager, Dorothy, for
25 relevant documents to properly defend Mr. Dykstra, whom was literally
26 suffering from being locked up for such a continuous and substantial period.
27 7. Mr. Dykstra, whom was in custody, could not assist as to paperwork,
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 banking information, “Startup” records from his New York attorney, and
2 other important considerations.
3 8. In addition, Mr. Dykstra’s computers were seized. It was Mr. Blatt, whom
4 is Mr. Hymers attorney, that presented paperwork through defense exhibits
5 at the preliminary hearing. Mr. Hymers computers were not seized; nor was
6 Mr. Hymers in custody.
7 9. A plea disposition was finally reached in this case. It was very difficult for
8 Mr. Dykstra to enter into these pleas.
9 10. The prosecutor, Mr. Karkanen, even spoke to Mr. Dykstra in lock-up right
10 before his plea. Mr. Karkanen could see, first hand, the struggles Mr.
11 Dykstra was having.
12 11. Exhibits, including paragraphs 5A through 5MM of this declaration, support
13 the defense contention to allow Mr. Dykstra to withdraw his plea.
14 A) Exhibit “A” is a declaration from Mr. Dykstra.
15 B) Exhibit “B” is a declaration from Mr. Dykstra’s business manager,
16 Dorothy Van Kalsbeek.
17 C) Exhibit “C” is a declaration from Mr. Dykstra’s prior attorney, Mr.
18 Mortner.
19 D) Exhibit “D” are records pertaining to the company “Home-Free
20 System LLC”.
21 E) Exhibit “E” is an email dated January 27, 2011 from Mr. Hymers
22 (co-defendant) to Mr. Gavanis (second co-defendant). (It is
23 interesting to not that both co-defendants received misdemeanors
24 and credit time served sentences).
25 F) Exhibit “F” is an e-mail from Mr. Dykstra to a Darren pertaining to
26 the fact that Mr. Hymers prepares Mr. Dykstra’s financial
27 statements. In addition, on that same document is an email from Mr.
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 Hymers confirming this fact.
2 12. I have completed a lengthy sentencing brief on behalf of Mr. Dykstra. I
3 truly believe that this motion to withdraw Mr. Dykstra’s plea is well taken,
4 based on sold grounds and should be granted.
5 13. In addition, I have been preparing for two jury trial. People v. Ramos ( Case
6 No. FSB058748) is a Double Murder jury trial to commence on March 6th,
7 2012 in San Bernardino. In addition, I am preparing for a Death Penalty
8 jury trial to commence on April 9th, 2012 in downtown, Los Angeles.
9 14. Mr. Dykstra has been a completely different individual since his release
10 from custody. Mr. Dykstra has been in full compliance with everything that
11 has been required as expected from him.
12 I declare under penalty of Perjury that the foregoing is true and correct.
13 Executed on February 23, 2011, at Sherman Oaks, California.
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ANDREW REED FLIER
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
 1 PROOF OF SERVICE

2 STATE OF CALIFORNIA, COUNTY OF LOS ANGELES

3 I am over the age of 18 years, not a party to the within entitled action; my business
address is 15250 Ventura Blvd., Ste. 600, Sherman Oaks, California 91403;
4
5 On the execution date below, I served the foregoing document as described as:

6 NOTICE OF MOTION AND MOTION FOR ORDER WITHDRAWING PLEA OF

GUILTY; MEMORANDUM OF POINTS AND AUTHORITIES; DECLARATION
7 OF ATTORNEY ANDREW REED FLIER

8 on all interested parties through their respective attorneys of record in this action:

9 Alexander Karkanen, DDA

Taskforce for Regional Autotheft Prevention
10 9040 Telstar Avenue, Suite 115
El Monte, CA 91731
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12 METHOD OF SERVICE:

13 G (BY FACSIMILE TRANSMISSION) I caused the above-described document(s) to be

transmitted via electronic facsimile.
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G(BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the
15 United States mail. I am readily familiar with this firm’s practice of collection and
processing correspondence for mailing. It is deposited with the U.S. Postal Service on that
16 same day in the ordinary course of business. I am aware that on motion of party served,
service is presumed invalid if postal cancellation date or postage meter date is more than
17 one day after date of deposit for mailing in affidavit.
G(BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the
18 offices of the above addressee(s).
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I declare under penalty of perjury that the above is true and correct.
20
Executed on February 29, 2012, at Sherman Oaks, California.
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STACY A. WINBERG
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MOTION FOR ORDER WITHDRAWING PLEA OF GUILTY
V.L181HX3

 DECLARATION OF LENNY DYKSTRA

I, LENNY DYKSTRA, declare:

1. On April 14,2011, Lenny Dykstra walks out of the horne he was renting and is

jumped by approximately 15 under cover cops (1 can only assume that the they were cops) I was

immediately handcuffed, and thrown in the back of an unmarked car. After asking numerous

times "What is going on? Who are you? Why are you handcuffing me and treating me like a

criminal, am I under arrest?" The only answer I received was "we are taking you to see the big

man, he will explain everything." I asked numerous times "why are you treating me like a

criminal, I have never committed a crime in my life." They would not give me an answer. This

took place between approximately 7:00- 8:00 pm.

2. This took place at the home I was renting in Encino. Then, I am taken downtown

and placed in what I could only guess was an interrogation room. Then, I ask the FBI Agents

"what is this about? Why was I treated like some kind of criminal - and nobody will tell me what

this is about? I aked if I was being arrested and they said no, you are being detained. To my

disbelief - when the FBI Agents finally start talking to me thay ask me about my bankruptcy case.

I responded: "my bankruptcy! Are you telling me that] 5 undercover cops jumped me was] was

walking out of my house - handcuff me like I am some kind of criminal, cause a major scene, all

to talk about my bankruptcy ?" I then responded to the FBI agents by saying "what do want to

know about my bankruptcy that is not already ion the docket? Then I said, "let me ask you a

question; "what is the cost these days ofa 23 year marriage? As the bankruptcy trustee is

directly responsible for dismantling a 23 year marriage? Or, what about destroying the lives of

my three sons?" Later that same night after the FBI could not get me (Dykstra) to sign a release

of my rights for counsel, they left. Then, I (Dykstra) a man walks in and tell me his name is
Detective Contreras, and I ask him "what is this?" Why am I being treated like a criminal? Who

are you? What do you want'?" I ask Detective Contreras repeatedly, "why am I here?" Contreras

tells me that Home Fee Systems, LLC is not a real company, that it's a fake company used to

steal cars (the 3 cars that were leased).

3. On April 14, 2011, Lenny Dykstra tells Contreras numerous times to contact his

attorney, Moshe Mortner, regarding the company Home-Free Systems LLC, Dykstra tells

Contreras that Mortner will give him all the company info, and the proof to show that Home Free

Systems is indeed rcal by providing him with all the legal documentation. Dykstra tells

Contreras, "All you have to do is call my attorney, and he will give you everything you need,

please call Mr. Mortner and he will prove that it is a real company. "Why are you trying to ruin

my life?"

4. That same night, after being detained for what was approxiamtcly 6 hours,

Dykstra is told that he is going to be arrested for car theft (GTA) - I literally am in shock, in

disbelief, and I plead with Detective Contreras once again to call my attorney, Moshe Mortner,

and he will clear all of this up. Why would you arrest me before checking out my story, I said

again, "please, it's only one phone call to my attorney, he will give you all the proof you

need." He would not repsond to me, so I said, "you are going to lock me up in jail without even

checking to see if I am telling the truth?" Sir, my freedom is on the line, why are you trying to

ruin my life?"

5. I am then booked and thrown in jail - as I am still in complete disbelief as to what

was happeningwith $500K bail for the state case with a 1275 hold, but also there was a no bail

hold in place by the FBI. So, even if Dykstra would have bailed out, the FBI would have him

picked him up.

 6. When I was locked up I had no way to communicate with the outside world, as I

was not permitted phone privileges. I was also not pennitted a visitor until approximately the 4th

month of incarceration. Basically, I had no way to communicate with the outside world.

Moreover, shortly before I was locked up in jail, I fired my attorney, Mr. Moshe Mortner, who

was very upset at the time Ilet him go. I later learned after I was released that my assistant tried

numerous times to get Mr. Mortner to turn over all of the information regarding HOME FREE

SYSTEMS, LLC. Mr. Mortner was also asked by my assistant to call my attorney, Mr. Andrew

Flier, on numerous occasions but he refused.

7. The bottom line: My attorney, Mr. Flier, did not have sufficient information

regarding HOME FREE SYSTEMS, LLC. due to the fact Mr. Mortner would not return my

assistant, Dorothy Van Kalsbeek's, calls.

8. But, what is more troublesome, is the fact that Detective Contreras completely

failed to investigate the most critical issue in my case. I kept on explaining to Detective

Contreras that he must contact my New York lawyer, Mr. Moshe Mortner, whom set up and

incorporated HOME FREE SYSTEMS, LLC. If the detective would have simply contacted

attorney Mortner, then all of these relevant documents would have been procured by the

Government's own investigator.

I declare under penalty of Perjury that the foregoing is true and correct.

Executed on February 23, 2011, at Sherman Oaks, California.

1:::!J!tJ:--­
EXHIBIT B

 DECLARATION OF DOROTHY VAN KALSBEEK

2 I, Dorothy Van Kalsbeek, declare as follows:

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1. I currently work for the Defendant, Lenny Dykstra, who is charged in the above­
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captioned criminal case and have worked for the Defendant in some capacity since
5 March 2006.

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2. I currently hold a Bachelor's degree in accounting and have worked consistently as
7 an accounting professional since the age of 23 and have held jobs as a bookkeeper,
8 controller, corporate treasurer and CFO. When not working for Defendant, I also
work as a small business consultant as a QuickBooks accounting software expert.
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10 3. I am an individual above the age of eighteen years of age and have personal
knowledge of the facts set forth herein, and if called and sworn as a witness, I could
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and would competently testify thereto.
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13 4. I make this statement in support of the motion for the Defendant to withdraw his
plea.
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15 5. I am informed and believe that the facts so stated herein are true and correct.

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6. I am aware of the facts surrounding this case and was involved in the business
17 operations of the defendant, including but not limited to Home-Free Systems LLC.
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7. I was NOT named as a defendant in this case, although a warrant for evidence in
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this case was served and computers from my home were confiscated for a time.
20 They have been returned.
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8. Prior to and after the removal of computers from my home, at NO time was I

22 questioned in this case to provide evidence for or against the defendant, which I

23 believe would exonerate the defendant.

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9. I believe that the moral character of the defendant has been maligned unjustly by
25 the charges brought against him in this case. Although he is often times impatient
and unconventional, he is not a bad person and lives with an honor code that is
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difficult to emulate. I have never met another individual that works harder.
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28 10. The charges in this case are in a word: Ridiculous.
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11. The defendant, with two other business associates whom he bel ieved to be honest
2 and trustworthy leased three cars from Galpin Ford.
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12.ln my contact with those involved with the car transactions, there was no intention
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to defraud; there was no intention to cause harm or loss.
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13. Applications were completed at three separate dealerships that I am aware of, not to
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defraud additional dealerships into leasing more cars, but because credit for the new
7 company and the defendant, who is going through a high-profile bankruptcy case ­
8 did not qualify for credit at the first two dealerships where he attempted to lease two
or three automobiles.
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10 14. Had either of the first two dealerships approved leases and closed the deal, then no
additional applications would have been submitted further. They each only needed
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one car. Similar to the practice of going to one store, and if they don't have what
12 you want and/or don't provide credit terms necessary to complete the sale, if you
13 still want the item, you try another store.

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15. The cars that were leased were INSURED. Online payments with Ford Motor
15 Credit were set up for each automobile, and payments submitted.

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16. It was my responsibility to set up the payments and ensure timely remittance was

17 tendered when due.

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17. There was some mix up with the bank, as after the first payment was tendered, but
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had not cleared - defendant closed out his account without leaving enough in the
20 account for the payments to clear. That was an unintentional error of oversight on
the part of the defendant and not done with the foreknowledge that he was causing
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the paymel1ts to be rejected. At the time he believed them already paid.
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23 18. After he opened a new account, payments were tendered again. This time the
payments were either refused by Ford or by the bank. It is unclear what happened.
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Payments were set up online, information regarding the bank account and loan
25 information was input into the online payment system. The payments were accepted
by Ford, and posted as "PENDING" at the bank for a day or two. But, were
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eventually rejected. There were sufficient funds available in the bank to fully cover
27 the payments. But, they somehow bounced before clearing. It is unknown why.
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 19. On a couple of occasions, I personally talked with a representative of Ford Motor

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Credit and provided information regarding the payments, insurance, where the cars
2 were garaged and which individual was the primary driver for each car. I provided
3 full disclosure with regard to all that was required.

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20. Ford Molor credit was not able to determine why the payments bounced with
5 sufficient funds available. The bank was not able to determine why the payments
bounced with sufficient funds available.
6

7 21. Home-Free Systems LLC was set up by Defendant's attorney in New York, Moshe
8 Mortner.

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22. Defendant's former attorney Moshe Mortner in New York had critical evidence in
10 the case for which it was difficult to obtain due to Mr. Mortner's distance and
lifestyle. Mr. Mortner is a highly religious Orthodox Jew who spends considerable
11
time with religious studies. This makes him somewhat difficult to contact and get a
12 response [rom him, due to his limited schedule.
13
23. I sent several emails and tried to reach out to Mr. Mortner by phone on several
14 occasions - getting no response from him due to the fact that he has this very limited
15 work schedule and also due to the fact he had concluded his representation of
Defendant.
16
24. Eventually Mr. Mortner was reached and the evidence in his possession was
17
forwarded to counsel for the Defendant to support this motion.
18
25. It was Mr. Mortner who prepared the documentation necessary to create the entity
19
Home-Free Systems LLC and registered the name with the New York Department
20 of Corporations. In addition, Mr. Mortner received the proceeds of the loan that was
21 provided by an investor as seed capital for business operations of the new entity.

22 26. Proceeds from the loan were used to create a website for the company, which would
23 be used to market the company to potential customers.

24
27. Businesses such as RealtyTrac were contacted in conjunction with the business

25 model to help us efficient! y find qualified customers for our services.

26
28. Interviews were conducted to hire sales representatives for the new entity.
27
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3
 29. The company was promoted on the Alex Jones internet radio broadcast which
1
resulted in a flood of web hits and phone calls to the company's toll free line.
2 Nearly 200 people called in within the first week, after a 10-15 second blurb about
3 the company that wasn't even scripted.

4 30. After Defendant was taken into custody I tried to see him. I needed to fill out an
5 application prior to being allowed in due to the location where he was being held,
and the approval process which states on the application to take up to 30 days took
6 in this case nearly three months. The application was submitted in June and my first
7 visit was allowed mid-September.

8 31. Additionally, Defendant was not allowed to make phone calls. On occasion (about
9 one in 7-10 days), while waiting to take a shower he was abk to use the phone for a
moment or two, but in general - he was denied phone privileges. It took several
10
phone calls to the watch commander and chaplain's office to get authorization for
11 the Defendant to place a phone call to the hospital prior to his mother's death. I
found it to be inexplicable that such a request would not be instantly granted. It was
12
as though they honestly wanted to deny him the opportunity to speak to his mom for
13 the last lime.
14
32.lL is my belief that the defendanl should be allowed the opportunity to have his day
15 in court and the chance to exonerate himself of all charges.
16
I declare under penalty of perjury under the laws of the United States of America that the
17 foregoing is true and correct.
18

19 DATED: February 28, 2012 Dorothy Van Kalsbeek

20

21
Dorothy Van Kalsbeek
22
23

24
25

26
27

28
4

Exhibit C
 DECLARA TION OF MOSIIE MORTNER

2 I, Moshe Mortncr, declare as follows:

3
1. I am an attorney admitted to the practicc oflaw in thc State of New York and before
4 thc United States District Court for the Southem District of New York. In, 2010 I
5 applied for admission before thc US Bankruptcy Court for the Central District of
California, San Fernando Valley Division, to be admitted pro hac vice for the
6
limited purpose of representing the Defendant Lelmy K. Dykstra in connection with
7 the aspect of his bankruptcy proceedings that concerned the secured claim of JP
8 Morgan Chase.

9 2. Additionally, I was engaged by Dcfendanllo set up the company Home-Frce

10 Systems LLC.

11 3. Accordingly. I arrangcd for the fornlation ofthe entity Home-Free Systems LLC on
July 12.20 I O. which I caused to be registered with the New York Department of
12
Statc. Division of Corporations and Records.
13
4. Homc-Free Systems LLC. and the Defendant raised $300,000 from an investor who
14
was given equity in the start-up company and a promissory note. As Mr. Dykstra's
15 attorney, I was responsible for preparing the promissory note in the amount of
16 $300,000 for the investor.

17 5. The S300,000 invcstment for Home-Free Systems LLC was wired directly to
my Client Trust Account, and I immediately distributed thosc funds per thc
18
instructions of my client, Defendant.
19
6. I-IOME-FREE-SYSTEMS, LLC, received all of the legal documentation required
20
under the law to become a legal and active limited liability company in the Stale of
21 New York.
22
7. In additlOn, pursuant to Defendant's instructions, I applied to the IRS on behalf of
Home-Free Syslems LLC for an EIN, and the number was issued on August 3,
2010.
24
8. Upon infonnation and belief, defendant created Home-Free Systcms LLC lO do
business undcr the namc Predatory Lending Recovery, which Defendant later
26
changcd to StoptheGrcedyBanks.com.
27
28
 9. At various times I was asked by Defendant to provide consulling services for
Home-Free Systems LLC in matters pertaining to residential foreclosure defense
2 and related services In fact, 1spcnt two full days in Los Angeles consulting with
3 Dcfcndant and his associatcs as to the dcvelopment of the company's business
modcl.
4
5 10. Residing and practicing law in the State of New somewhat limits my availability for
tile Dcfendant frolll time to time.
6
7 II. When the Defendant was taken into custody, I was out of the office and unavailable
to produce needed docwnents for the Defendant's case. Additionally, I was not
8
aware they were needed at the time.
9

10 12. At no time prior to or subsequent to DefenEiant's arrest was I contacted by law

cn lorcement officials or investigators asking for any infonnation with regard to the
11 Defendant or Home-Free Systems LLC.
12
13.11 was not intcntional that the information in my possession concerning Home-Free
13
Systems LLC was not made available to the defense in this case in a timely manner.
14 I am a commercial attorney and I had no involvement in Defendant's criminal
15 deflmsc.

16 11 declarc under penalty ofpeTjury under the laws of the Umted States of America that the
17 foregoing is true and correct.

18
19 DATED: Febmary 28.2012

20 Moshe Mortner, Esq.

21

23

~: I

26
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2

 Page30r3

004857

How To Balance Your Bank of America Account

FIRST. start with your Account Register/Checkbook:

1. List your Account Register/Checkbook Billoi1ce here $---­

Subtract "my servicC! charges or othN deductions nat previous',y recorded lhat are listed on this statement ..__ M.M_M_'_' .MM._... $---­
3. Add any credlls not previously recorded that arc listed on this statement (for example interest) .M_M._... "' 'M"'_.__._ $---­
4. This is your NEW ACCOUNT REGIS fER BALANCE $---­
NOW, with your Account Statement:

1. List your Statement Ending Balance here $---­

2. Add any deposits not shown on Ihl$ statement ................................................_ _ $----­

3 LIS', and total all outstanding checks ATM Check Card and other electronic withdrawals
SUBTOTAL
$====
Checks. ATM, Check Card, Checks, ATM. Check Card, Checks, ATM, Check Card,
Elecl:Ionic Withdrawals Electronic Withdrawals Electronic Withdrawals
Date/Check # Amount Date/Check # Amount Date/Check # Amount

4 TOTAL OF DUTST ANDING CHECKS. ATM, Check Card and other electronic withdrawals . ._._._..__ ._M.M..... $
5. SubtrClct total outstanding checks, ATM. Check Card and Olher electronic withdrawals from Subtotal
nllS Balance should match your new Account Register Balance ._.__ ._.M.MM.M.__ _. ._. " _.__.M.M ................_ _..... $
Upon receipt of your statement. differences. if any, should be reported to the bank promptly tn writing and in accordance WIth provisions in your deposit
agreement.
IMPORTANT INFORMATION FOR BANK DEPOSIT ACCOUNTS
Change of Address. PIQ8Sf' call u~ at the lelephone number listed on the front of this statement 10 tell us about a change of address.

Deposit Agreement. When you opened your account, you received a deposit agreement and fcc schedule and agreed that your account would be
governed by the terms of these documents. as we may amend Ihem from time to time. These documents are part of tlie contract for your deposit accOunt
and govern all transactions relating to your account. inclUding all deposits and withdrawals. Copies of both the depOSit agreement and fee schedule,
which contain Ihe current verSion of the term~ and conditions of your account relationship. may be obtained al our banktng centers.
Electronic Transfers: In case of errors or questions about your electronic transfers
If you trllnK your statement or receipt IS wrong or )f you need more Information about an electronic transfer (e.g" ATM transaclions, direct deposits or
w,thdrawals, pOint-of-sale transactions) on the statement or receipt, telephone or write us at the ilddress and number listed on the front of th,s stalement
as soon as you can. We must hear from yOll no later than 60 days after we sent yOll the FIRST stalement on which the error or problem appeared.
• Tell us your name and account mHnber.

• Describe the error or the transfer you arc unsure about and explain as clearly as you can why yOll believe there is an error or Why you need more

Information.

• Tell us the dol'iar amount of Ihe suspected error.

For cor,SL:mer account::. used primarily ror personal. filmily or household purposes, we will Investigate your complaint and will correct any error

promplly. If we take more than 10 bUSiness days (10 calender days If you are a Massachusetts customer) (20 business days If you are a new customer.

for electronic transfers occurrtng durmg the first 30 days after the first deposit is made to your account) to do this, we will recredlt your account for the

amount you think is tn error, so that you wdl have use of the money during [he time it takes us to compleJe our investigation.

For olr.er accounts, we investigate, and if we lind we hiwe made an error. we credit your account at the conclusion of our investigatIOn.

Reporting Other Problems. You must examine your statement carefully and promptly. You are in the best position to discover errors and unauthorized
\ransanlons on your account. If you fail to notify us in writing of suspected problems or unauthOrized transactions Within me time periods specified in
the deposit agreemenl (Which periods arQ no more than 60 days after we make the statement available to you and In some cases are 30 days or less). we
arc not liable to you for. and yOL. agree not to make a claim against us for the problems or unauthorized transactions.

DIrect Deposits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you
may call us at the telephone number listed on the front or this statement to find out if the deposit was made as scheduled.

Bank of America, N.A. Member FDIC atld @ Equal Housing Lender