By Edward Snook
San Jose, CA – On September 18, 2006, a hearing was held in federal court in San Jose, CA to determine if Federal Judge James Ware would release Sam Fung’s attorneys after Fung had fired his attorney Terrance McCauley of Estacada, Oregon. An October 18, 2006, trial was scheduled when Fung suddenly fired his attorney on August 30, 2006, due to conflicts of interest, the attorney’s failure to prepare for his defense and for the attorney’s unauthorized deal-making with Assistant United States Attorney (AUSA) Thomas Moore.
A Brief NTS History
Sam Fung, a successful commercial realtor from Medford, Oregon had invested in a program called National Trust Services (NTS) after attending public seminars just like hundreds of other business people from around the country, many possessing advanced educational diplomas. People were taught the seemingly legal and above-board practices of operating blind trusts (complex trusts) by Leroy Fritts, Rick Prescott and others. All involved with NTS went through thorough training regarding running the trusts, including visual instructions on filling out IRS tax forms. Fung ultimately purchased software that processed information into a tax form. When members found out Fung had the soft ware they paid him to enter the figures they provided and produce a tax return. Some NTS members even borrowed the software from Fung to do it themselves. Obviously all involved with NTS totally believed in the program just as Fung did and all listened to the same instructions and teachings.
This fact meant nothing to IRS agent Dennis Brown who started “blindly” investigating NTS for criminal violations in 1991. Brown seized NTS computers and materials twice during his 15 year investigation, returning them both times, thereby bolstering the apparently legal status of NTS with its members. After 15 years of allowing a program that he considered illegal to continue Brown and his cohorts in the justice department started their big round-up. Regarding Fung’s case, Brown and other IRS employees ended up scaring NTS members with criminal prosecution if they refused to go along with IRS deceptions and point a finger at Sam Fung. About a dozen gladly pointed their finger and Fung was indicted for “assisting in the filing of false tax returns” on August 3, 2005. What was simply a civil matter due to the absolute fact that Fung had no intent whatsoever to violate any law now has turned into a criminal matter by government agents who love to play “God.” Exposing this fact is all too simple; if Fung believed the same instructions as those he assisted and was charged for assisting in filing fraudulent returns, why shouldn’t those on the other side of assisted be charged as well? Fung could possibly be charged with assisting in the filing of returns without a license, however he was taught, as were others that he was an agent trustee for those he assisted and that his actions were legal. Fung even went to the extent of signing a contract with those he assisted clearly stating this fact, but amazingly when Fung’s attorney received discovery from prosecutor Thomas Moore the contracts were conveniently missing. Moore has to possess the contracts but he certainly wouldn’t want to provide Fung with anything that could help prove he was simply filing false charges against an innocent man.
Contents of the Sept. 18, 2006 Hearing
Moore, a weasel-like attorney sat at the prosecutors table in federal court smirking, whispering with other AUSAs’ and basically acting like a spoiled little child as he awaited his turn to practice his trickery on the court regarding Sam Fung.
Moore stated to Judge James Ware that Fung had a practice of filing papers with the court without his attorney’s knowledge, attempting to make Fung look bad to Judge Ware. Moore stated this because Fung had served the court, Moore and his own attorney paperwork prior to the hearing that contained a letter from Fung to Judge Ware, a letter from third parties clearly showing his attorney’s conflict of interest and a letter written by this reporter to Judge Ware. Moore then told Ware of tape recordings he had directed taken of Fung where Fung was having a discussion with Irvin Gootnick a San Francisco Psychiatrist and alleged tax evader. Moore then claimed that he was going to be filing a superseding indictment against Fung for witness tampering etc. This is the same threat Moore made to Fung via his incompetent attorney Terrance McCauley as he and McCauley were attempting to scare Fung into a felony plea bargain (read our first two articles on Fung at www.usobserver.com), using “many years in prison” as their leverage. As for witness tampering, nothing could be further from the truth. This investigative reporter has listened carefully to the recording and there is not “tampering whatsoever. This threat by Moore is simply coercion and it demonstrates this out of control prosecutor’s addiction to his “God Syndrome.”
Moore did his best but the Honorable Judge James Ware wasn’t buying it. At this juncture Fung’s CA attorney asked the court to strike the letters as they apparently breached the attorney/client privilege and he stated they could incriminate Fung. The truth is that the letters only incriminated those attempting to steal Fung’s freedom as well as his finances; however Judge Ware, in an act of caution ordered the letters returned to Fung. Ware stated, “give these back to Mr. Fung, I haven’t looked at them yet.” He then instructed the other parties to return their letters. In an act resembling an endangered species called Justice Judge Ware, without hesitation, vacated the October trial date and set up a hearing to determine if Fung could receive a federal public defender. Fung was placed into the position of needing a public defender due to the fact that his attorney McCauley had tactfully squeezed a $60,000.00 retainer from him; money that Fung had to borrow. McCauley did little for his windfall (read “Are You A Victim Of False Prosecution” to find out exactly what McCauley did to Sam Fung); emphasizing the Observer’s position that much of the retainer is now considered stolen money.
An innocent Sam Fung
On September 21, 2006, Fung once again appeared in federal court in San Jose where federal public defender Cynthia Lie was appointed to represent him. This reporter witnessed Attorney Lie at the September 18, 2006, hearing and she appeared to be “all business,” much unlike Fung’s previous attorney who was only attempting to appear to represent Fung in an effort to relive him of his money, an attempt by the way that was highly successful. We are convinced that Cynthia Lie will investigate the entire case and come to the conclusion that Mr. Fung has been the scapegoat for those he helped and the target of vindictive government agents, wielding their un-controlled power.
Federal Judge James Ware is highly commended for both his concern over and protection of Sam Fung’s constitutional rights and Assistant United States Attorney Thomas Moore should be placed in a jail cell for the underhanded and evil carnage he has leveled at Fung and others.
The US~Observer will continue coverage on the Sam Fung false prosecution and we would ask any individual who has information about AUSA Thomas Moore, his boss U.S. Attorney Kevin Ryan, or IRS agent Dennis Brown to contact Edward Snook at 541-474-7885. Be apprised, this isn’t the first time that Thomas Moore has attempted a false prosecution on a decent, law abiding American citizen. U.S. Attorney Kevin Ryan has been fully informed about Moore’s conduct and has apparently chosen to turn his head the other way; therefore we intend to hold U.S. Attorney Kevin Ryan accountable for this abuse…
Please contact U.S. Attorney Kevin Ryan at (415)436-7200 and let him know he should end Fung’s case.