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 > DENNY HAYES STR FOCUS?    * EXCLUSIVE! *   "..if I single someone out.."


     STReport  has  obtained  directly  from  DENNIS  HAYES  his  very  own
     statements concerning his arrest and ultimate conviction for copyright
     violation.    Names  of  individuals  and companys mentioned have been
     removed or blocked out.

 by Dennis Hayes aka "Denny" Hayes

 Part I

    This is  the statement  I prepared  to read  at my  sentencing, but was
 advised not  to read,  because the judicial system doesn't like you saying
 bad things about them.  I've also added a comment at the end.   I've tried
 to make  sure it's  as truthful  as I  can.  If there are any mistakes, it
 wasn't intentional.  Of course everything  is from  my point  of view.   I
 can't pretend  to be someone else, and think like them.  Many are going to
 read this, and say I got what I deserved.  Ignorance is bliss.   To affect
 what happens  to me has nothing to do with me writing this.  My sentencing
 is over, and what I say here makes little difference  with respect  to me.
 But if  anything, I say here, can help keep anyone else from going through
 this, it was worth it, and will make me feel what I have gone  through had
 some purpose.

                             S T A T E M E N T

 Your honor,

     I've been  informed that I should make a statement in my behalf.  I've
 had a long time trying to decide what to say, but it's hard to decide what
 to say.  I'm not an attorney, and don't know what will help me or hurt me,
 and I doubt that it makes any difference what I say.   If I  say something
 good about  myself it  comes out  that I'm  trying to pretend to be an in-
 nocent bystander.  If I comment on the many problems I've had to date, I'm
 looked at as a complainer, and most of us have problems in life.  If I say
 nothing, my family has to suffer.  If I comment  on the  questionable tac-
 tics used  to prosecute  me, I'm passing the buck, and not accepting blame
 for my actions.  And in reality most of the  agents I've  met are surpris-
 ingly intelligent,  and fair.   I  even thought  of mentioning one who has
 tried his best to be fair, but I'm afraid if I single someone out it might
 put him in bad light.  Anyway, he knows who he is, and he has my thanks.

    Since I'm  not sure  what is  best said,  I'm just  going to say what I
 feel, trying not to hurt anyone, and let it fall where it may.   And since
 the pre-sentencing  investigation report  started when I was in grade sch-
 ool, so will I.

    I'm a technically oriented  person who  started school,  and really en-
 joyed learning  new things.   When the rest of my peers were playing base-
 ball, I was studying.  And  for this  effort I  had the  words honor pupil
 written on  the side  of my  report card every year.  The problem was, and
 is, there is no reward for this effort.  The kid who can knock a home run,
 and lean  against the  wall looking  cool, without saying a thing gets all
 the attention.  In reality he probably says  nothing because  he can't put
 two syllables together to form a word.

    There are  many other  advantages to not appearing smarter than anyone.
 When my oldest daughter was in  the first  grade, she  could already read,
 because I  had spent  the time to teach her.  Her teacher complained to me
 that I should stop teaching things to her ahead of  time, because  it made
 it hard  for the  teacher to teach her, when she already knows, the things
 she is trying to teach to her.   I guess  they want  everyone at  the same
 level now.   Just  a couple  weeks ago  she came home, and said she had to
 redo a report she had turned in, because  she had  done it  on a computer,
 and was told it wasn't fair to the kids that didn't have one.  I guess she
 also shouldn't use her brain, if the rest of the class doesn't have one as
 good either.

       So around  the sixth  grade I  decided that  if I  didn't appear too
 smart I might be accepted a little more.  That was easy,  just fail  a few
 tests on  purpose.   The problem  was it didn't work.  I just didn't think
 like most people, and I didn't like baseball, or football.  Also,  in most
 other areas  I didn't  think the same.  And I didn't take what was told to
 me by others without trying to find out  what was  really true.   Which is
 probably a large factor that brought me  here.

     I  joined  the  navy  after  graduating  from high school, and entered
 electronics school.  I graduated in the  top  10%  of  my  class,  and was
 jumped to the next rank.

     In college  I didn't  understand the  importance of  a degree.  I just
 loved electronics, and wanted to learn  everything about  it that  I could
 without wasting time on subjects like English, and Psychology.  Or maybe I
 was just impatient.  So even though I've had many  hours, I  never matric-
 ulated, and therefore never received a degree.

     After school  I started  working for  a company as a non degreed engi-
 neer, at $3.10 per hour.  Very quickly I was considered the oddball elect-
 ronics wizard of the company.  This upset the former wizards, who tried to
 make it as hard as they could for me.   After three,  and a  half years, I
 had all  the political  beating I could take, so I quit, and took a job as
 assistant chief engineer with a new company, which was, four  years later,
 bought out  by the same guy that started Days Inn Motel chain.  During the
 transfer they had a flood which put them out of business.   So I  was left
 without a job.

     I then  started working for consulting engineering firms on assignment
 to large companies like Procter & Gamble, Monsanto, AM Kinny, etc.

     As I started having a family,  I wanted  to make  a better  living for
 them, and  myself.  Large Fortune 500 companies required a degree, and you
 really didn't need to know much.  And  smaller companies  didn't pay much.
 They liked  being able  to hire  someone who  is good, and who they didn't
 have to pay much.  It's a shame that you get paid  for the  piece of paper
 rather that what you know, and can do.  Prior to having a family, I really
 didn't care though, I loved what I was doing, and the money didn't matter.
 So I decided to start a company with a friend of mine.  The problem was, I
 didn't realize how lazy he was, and after  some customers  cancelled their
 orders,  because  he  didn't  finish  his  part, I started my own company,
 designing, and building robotics,  and test  equipment for  large corpora-

     That was  one of  the biggest mistakes I ever made.  I worked over 100
 hours a week, and made little money.  Large corporations seem to get where
 they are  by walking  on small companies, and throwing them away when they
 ask a fair shake.  I had a meeting on the eleventh floor of a local chemi-
 cal  corporation  tower,  where  they  admitted  they owed me thousands of
 dollars, but were not going to pay, because they had hired some  new young
 hot shots  who wanted to do the job by themselves.  The former head of the
 department had  been forced  into an  early retirement  at the  age of 59,
 which later caused him a heart attack.  When I mentioned that I would have
 to take them to court, I was informed that since all the  orders, they had
 given me, were rush orders, they hadn't sent me any paper work.  In fact I
 don't ever remember getting paper work on any  jobs I  ever did  for them.
 Every job  was a  rush job,  and if you wanted any future orders from them
 you did what they ask.  Of course I consulted  an attorney,  and of course
 he told  me that  I would  be a fool to take on a company of that size.  I
 made the mistake one time to take a company to court, who owed me  a large
 amount of  money, and  I saw what happens.  I won't go into detail of what
 the job was, if you are  like most  attorneys, high  tech stuff  is out of
 your realm, and it would take too long to explain.  But to make it simple,
 it was an assembly job, something  any low  tech person  could do.   I did
 this job,  on 30  day open  account payment,  which is  quite usual in the
 electronic world.  I sent the  first half  open account.   But  before the
 second half of the order was completed, I was informed by another company,
 that they had a bad reputation for not paying their debts.  So I  made the
 second half COD.  True to form they didn't pay for the first half.

     After months  of run around phone calls about the person being respon-
 sible for payment being out of town, etc, I decided to take them to court.
 They counter-sued,  saying the units I'd done were defective.  And without
 notifying me, or giving me the opportunity to repair any  supposed defect,
 they said,  they had  repaired them at a cost of twice what I charged them
 for the whole order.  My attorney felt since they were caught in many lies
 in court,  and they admitted they never contacted me about any defects, we
 would win.  Two weeks later the decision  came down  that I  owed them all
 they  asked  for,  and  I  got  nothing.  What happened, who knows.  Since
 Cincinnati is not a very good place for a high tech business,  and I'd had
 quite a few other bad debts, I was forced into bankruptcy.

     But not  being the kind of person who gives up, I started again with a
 business manufacturing printed circuit boards, and  consumer products.   I
 guess this  was like jumping from the frying pan to the fire.  At one time
 Cincinnati had about a  dozen  specialty  electronic  design  companies in
 town.   Now there  is only one I know of.  They have all realized there is
 no money in it.  So I'm sure it's not just my  ability to  run a business.
 People save  up a  little money  and get  the idea  to sell some widget or
 something.  They hire someone like me to design it  for them,  not knowing
 that the  product has  little importance.  And after the reality hits they
 drop the project like a hot potato owing me a  large amount  of money.   I
 tried getting  money up  front, but  they use it up then they have me bill
 them for the rest at 30 days, which stretches to 90 days, or more before I
 realize they  have run  out of money.  At that time I've worked over three
 months for nothing.

     It's a shame but  most people  don't know  quality.   They buy advert-
 ising, name,  and flair.   I  have a  friend who is the head of the design
 department of the largest local toy company, who  tells me  the product is
 7th on  the list  of importance  with his company.  Marketing of course is
 first, and the list goes down from there.  You  can quickly  see you don't
 need a  good product.   If  you have a good marketing program you can sell
 manure for $5.00 a gallon as fertilizer, face cream, or whatever.   It's a
 shame, but I now find my skills aren't really needed.

     After a few years of this, I see I'm heading for another bankruptcy, I
 feel I'm getting old, I then lost someone I cared a lot about, and  I find
 myself wandering  around Drug  Palace trying  to find something I can kill
 myself with, with assurance that it will work.  Fortunately  the medicines
 that work  for sure  are prescription only.  Also, I began to realize that
 it would put a big strain on my family, and  I didn't  want to  do to them
 what  my  mom  did  to  me,  so I called University Hospital and told them
 something was wrong with my head.  They  put me  on a  new anti-depressant
 drug test  program, which  turned me into a zombie.  Our living conditions
 were really bad.  My furnace went out,  and I  couldn't afford  to replace
 it.  So for three winters I asphyxiated my family and myself with kerosene
 heaters, which didn't even do much, except make  us all  cough a  lot from
 the fumes,  when it  was really cold.  So we often wore coats to help keep
 us warm.  They started foreclosure on our home three times, but somehow we
 ended up coming up with enough money to stop it.  I later finally lost it.
 At one point they turned our electricity off.   The  kids were  sitting in
 the tub  using the  hot water  left in the hot water tank to warm them up,
 until it ran out.  I had no money but I was expecting a check for a little
 job I'd  done, so  I turned  the electricity  back on again myself.  A few
 days later I received the check, and paid  the electric  bill.   Then many
 months later,  a representative  of CG&E  and a  county sheriff came to my
 house with a warrant for my arrest for theft of utilities, even  though my
 electricity was paid up to date.  After talking to my attorney they agreed
 to drop the charges,  if I  would pay  around $500.00  for a  crack in the
 meter that  I'm not  sure I even caused.  I paid it, and a few weeks later
 CG&E re-instituted the charges, saying the person who agreed to  drop them
 didn't have the authority.

     Since the  utility companies have recently pushed through a law (which
 I doubt that many know about) that makes it a  felony to  do anything aga-
 inst them,  I was charged with a felony.  I was encouraged to plead guilty
 to a lesser charge, and was put on one year probation.   And then  my wife
 left me, stating that she had enough of being poor, and later divorced me.
 Maybe she is better off.  Life like this is tough.

     So after a few  months I  had enough  of the  pills I  was taking, and
 threw them  in the  garbage.   I now  partially understand  how my mother,
 after graduating  with honors  at the  top of  her class  took 30 sleeping
 pills and killed herself.  When I was younger, I would never have believed
 it could get this  bad.   As I  think about  it though,  I guess  it makes
 sense.   If you don't have the burning desire to accomplish much, you face
 very little disappointment.

     For the next two or three years I could not function.  I'd sit  on the
 couch crying  sometime, in  a daze sometime, thinking a lot, and trying to
 function off, and on.  And I wasn't  a very  good provider  for my family.
 We would be on welfare, then I would do a little job, then we were back on
 welfare, etc.  Somewhere in there  I  bough  a  small  game  computer, and
 learned how to push it beyond its limits.  I thought games were a waste of
 time, so when I heard a company was  coming out  with a  device that plugs
 into the  slot on  the computer  meant for game, but would allow me to run
 word processors, spreadsheets, etc I checked into it.  I  found the device
 needed a  set of two computer chips from a MacIntosh computer, so I called
 around, and ended up borrowing some money, and  buying about  a dozen from
 different places.  I figured since the supply seemed low, I could sell the
 remainder at a little markup.  Later I  ran an  ad on  a computer bulletin
 board, that  I had  some chips for sale, and if anyone was interested they
 could leave me a message.  I received over 300 requests for the chips.

     Then I started thinking.  I knew I  could copy  the chips  for my fri-
 ends, and  myself.   That way I could sell the rest of the chips I had and
 make a few dollars.  So I bought some blank  chips, copied  the chips, and
 sold the  ones I'd  bought.   After a while everyone, I hadn't shipped to,
 was calling to find out why I didn't ship them  any.   I told  them that I
 only had  purchased a dozen sets, and they were all gone.  So I decided to
 order some more chips, copy them, and send everyone a set.

     This continued until I had orders coming in  faster than  I could make
 them.   At this point I started wondering about the legal problems I might
 get myself into, so I contacted  from  5  to  10  attorneys  (including my
 present attorney)  to find  out what  could happen.  Some said they didn't
 know for sure, and  others said  I could  be sued  by Apple  for copyright
 infringement.  Not one ever mentioned anything about criminal prosecution,
 even though I told them exactly  what I  was doing.   One  of the investi-
 gators recently  told me,  I should have known it was a criminal violation
 to do what I was doing, because there are many indications in life that it
 is a  criminal offence,  like the  notice on video tapes.  I told him that
 there is so much false propaganda in society that I  felt the  only way to
 find out for sure was to check with the people who should know.  I guess I
 learned something there.

    A year and a half ago, I was asked by the company who made  the device,
 which my  chips plugged  into, to  show people how it worked at a computer
 show in Chicago.  At that show, about five business men came up to  me and
 asked me  where you  get the  chips to  make the device work.  I told them
 that they could order them from me.  At that  point they  informed me that
 two of  them were attorneys, and the other three were from Apple Computer.
 Since they didn't seem  upset, and  seemed only  curious how  a cheap game
 computer could  run software created to run on a MacIntosh, I assumed they
 didn't really object.  If they had ever even implied  that they  wanted me
 to quit,  I would have done so.  I had already made more money than I ever
 expected too.  It also seemed  in line  with Apples  normal policy.   They
 encouraged  schools  to  use  MacIntosh software by selling MacIntosh com-
 puters to the schools at almost cost.  They have many times published that
 students would  get used  to using Mac software, and then recommend MacIn-
 tosh computers when they got into  the business  force.   Allowing kids to
 use game computers accomplishes the same.  It's curious that when everyone
 is questioned about a victim of my crime, they really  can't find  one, so
 they dance  around the  question.  In reality I doubt that there is a vic-
 tim.  The users are happy they have access to information they wouldn't be
 able to afford.  And in more ways than one it is boosting Mac sales.

     In fact  I had a policeman from New York who bought a set of ROMs from
 me to use in his sons computer, and later showed it to  his department who
 ended up  buying hundreds  of thousands of dollars worth of MacIntosh com-
 puters for their department.  I had another  person buy  a set  for one of
 his children's  computer.  He kept them for four months, and called me one
 day to ask if he could return them and get some money back.   When I asked
 him why,  he informed  me he was a doctor, and had went out and spent over
 $10,000.00 on a top of the  line Mac  IIci.   I told  him to  send his ROM
 chips back, and I would give him all his money back.  And these are only a
 few that I know of.  Until I was charged, I had sold over 5,000.00 sets of
 ROMs to  every kind  of person from the US Treasury Dept, and the Veterans
 Administration to school kids  who were  using their  game computer  to do
 their homework.  But I doubt that many people who can really afford to buy
 a MacIntosh computer are  going to  buy a  game computer  with all  of its

     It was  funny though,  when I  was asked  what the US government could
 possibly be using the ROMs for, as if  they never  would skirt  around the
 law.   I don't  mean to  pick on  government workers, but even though they
 may not want to admit it they are just like the rest of us.   Getting what
 they can  for as little as they can, and trying to do the best they can in
 a situation where the cards are stacked against  them.   I know  they have
 been cutting the budget, but I believe the government can afford something
 besides a $300.00 game computer.  It won't ever be  public, but  I think I
 know what  really happened.  Some people working for the government wanted
 to play with one, and just got the government to pay for it, and since the
 FBI knows  about it,  he probably  is already in trouble.  See they are as
 bad, and sometimes worse than the  rest of  us.   It makes  you wonder how
 many other  personal toys,  the public  is paying for.  Mentioning this is
 not an attempt to point the finger, and say they do it  too.........  Well
 on second  thought maybe  it was,  otherwise I wouldn't have mentioned it.
 But, I am still guilty of making them.  Without me they would have probab-
 ly had a friend copy the program into an EPROM or something.  In fact from
 what I have counted, only about  a forth  of the  people have  been buying
 ROMs like  the ones  I made.   Most  people in the computer world probably
 either make them themselves, since it is so simple, or  get a  copy of the
 program on a computer disc, which is even easier.

     All this  may sound like Greek to a person who doesn't spend much time
 with computers, but swapping computer programs,  is the  norm in  the com-
 puter world.  To date, I've never met a person who wouldn't ask for a copy
 of a program I had, or more often agree to swap a copy of a program he had
 for one  I had.  There are many hundreds of computer boards around the US,
 and other countries, who offer a 5 or 8 to one exchange.   Of  course they
 are all  copyrighted, and  anytime you  copy one you are breaking the law,
 but given the option to do without or pay the  $200 to  $20,000.00 or more
 for a  program they  aren't really  going to  use in  business, they would
 probably do without.  For most it's really  more like  collecting baseball
 cards,  since  very  few,  I  talk  to,  ever  seem to know much about the
 programs they already have.   It  takes much  effort, and  most people are
 lazy when  it comes  to using their brains to learn something new, or just
 don't have the time.  It's the few that do, that go on to  become the whiz
 kids of  the future.   If  they don't have access to the information, this
 country is doomed.

     Try to compare it to going to the public library  in which  almost all
 books are  copyrighted.   Now try to find a floor of the library without a
 copier.  What's that copier for.   Now,  and in  the future  more and more
 data is being put on computer discs.  In the distant future the library as
 it is today will probably disappear.   Can  you imagine  what it  would be
 like if you as an attorney, or a student had to buy every book you used at
 the library.  I understand that there is a law that says you can  now copy
 part of  a book  but not  the whole book, but there is no way you can copy
 part of a computer disc, and  be able  to use  it.   Or to  really compare
 apples and  apples, attorneys  and many other professionals are using what
 they copy to make  money, so  you could  say they  should have  to buy the
 book.   Well, in  reality if they find they use it a lot, they usually do.
 And in the computer world, if they use a program a lot,  they also usually
 do.   It's so much nicer to have the support of the author of the program,
 and be able to call them and get help by giving them  your buyers' author-
 ization number off the box, when you need help.

     And if  you know  very little  about computers, what I did was sort of
 like providing the viewer to look at these programs.  And if  you have the
 viewer, you look at MacIntosh programs, and if you find a use for them you
 buy them, and Apple, and their  developers therefore  make money.   And if
 they have a real use for the programs, they usually get discouraged by the
 problems of the game computer, and you go  out and  buy a  real MacIntosh,
 which makes Apple even more money.

      I still  can't understand  why, if it is now the business of the FBI,
 to stop  the pirating  of software,  why do  they know  about these pirate
 boards, and  not stop  them.   And I can guarantee they know about many of
 them.  From watching, and talking to them it seems  it's only  against the
 law if  you make  money doing it.  That's cute, you can supposedly cheat a
 company out of all  the money  you want,  but if  you make  too much money
 doing it,  the FBI is going to take it away, put you in jail, and not give
 a cent  to the  people who  have been  ripped off.   There  are some other
 things they  have done,  in my case, which I wont mention because it might
 hurt people needlessly, which also let me know this is true.   Also, in my
 case they  say they are not even sure Apple lost any money.  I think I may
 have figured out the amount too.   I  watched an  agent get  chewed out in
 front of me for telling his boss that I had a million dollars, when I only
 had less than a $400,000.00.  It seemed  he was  irritated that  they came
 after me  before I  made enough  money for  them.   Which was  also in bad
 taste.  He could have waited until I wasn't around.  I actually felt sorry
 for the guy.

     Contrary to  what Apple might try to say, real businesses aren't going
 to buy game computers to use, and the  game computer  doesn't run  all the
 software, or  have color,  anyway.  I also doubt that many of these mostly
 kids who are using game computers could afford the over $3000.00 price for
 a Mac.  And the idea as was mentioned by Apple's attorneys that they would
 worry about repair of the bad chips they might get  back, is  also ridicu-
 lous since  they admitted the part only cost them $1.00, and if every chip
 I ever sold failed they could  replace them  all for  less than $5,000.00.
 To date I've only had about a dozen people call and say their chips didn't
 work, and I just sent them a new  one.   In reality,  when I  checked them
 most of them weren't really bad at all.  They must have been plugging them
 in wrong or something.  It's very rare for a chip that has no moving parts
 to ever go bad.

     I admire IBM who when Compact Computer Company did exactly what I did,
 by copying the chips from IBM's MS DOS PC computer,  told Compact Computer
 they didn't  care, and that they felt it would help MS DOS computer sales.
 And I guess it worked.  Today MS DOS computer sales count for over  60% of
 all 'S  computer sales.   I'm  curious what would have happened if IBM had
 taken the position of Apple computer.  I wonder if they would have charged
 the  owners  of  that  large  corporation with something, and then tack on
 charges that carries 26 years in jail.  I doubt it.

     Another interesting thing is that the  copyright, that  I'm accused of
 violating, is  presently in litigation in California.  And the ROM chips I
 was selling aren't even for sale anymore, by Apple.   If you  own a MacIn-
 tosh computer,  and have  a chip go bad, tough luck, it's out of warranty,
 and you go out  and plunk  down another  $3000.00 for  another one.   They
 probably  won't  admit  this,  but  I've  sold quite a few hundred sets to
 repair centers for Apple, who say they can't  get them  from Apple anymore
 at any  cost.   As for the litigation I mentioned, it seems everyone is in
 litigation.  IBM has encouraged Microsoft  Corporation and  Hewlet Packard
 Corporation to  make a  program that  works like  the MacIntosh ROMs to be
 used in the IBM MS DOS computer, so Apple is suing them.  This  upset many
 people, including  Apple Records who is now suing Apple Computer for using
 their name  and going  into the  music business  without their permission.
 And Zerox  is suing  Apple Computer  for copying  part of the same program
 which is in the ROMs that I'm accused of copying.   They  say they created
 it to  be used  in a  computer that they later decided not to produce, and
 Apple has copied it without their permission.   Also there  is a  group of
 engineers within  Apple who calls themselves the New Promethius League who
 are dissatisfied with the bully tactics used by Apple, and are giving away
 the program I was selling to anyone who asks for it at no charge.

     Apple appears  to be  trying to monopolize a computer that they didn't
 really totally create themselves, and is  making many  people in  the com-
 puter world  very unhappy.   They  drastically over charge for it, and sue
 anyone who is possibly a threat.  Now they have  the FBI  doing their work
 for them,  so they  don't look worse than they already do.  You can buy an
 IBM with the same power for  less than  a third  of the  cost.   It's very
 interesting that  you can  run most  of their  software on a game computer
 that sells  for a  little over  $300.00 and  until recently  they sold the
 lowest  cost  Mac  for  over  $3000.00.  Fortunately computer publications
 aren't so sympathetic, and are  informing  people  of  what  is  going on.
 Also, fortunately  for the consumer, so many people are angry that I doubt
 that Apple will be able to hold out in the long run.  In  a way  I hate to
 see it.   The  Mac is  a really nice computer and I'm going to hate to see
 developers steer away from it.  But maybe it will make them clean up their
 act.  In reality, I doubt it.

     I've been  asked many  times by companies wanting to create a clone of
 the Mac if I could sell them 256K  ROMs from  the top  of the  line Mac II
 family.  It's actually as easy to copy as the ones I sold, and I could get
 twice the money, but I like the Mac  computer, and  don't want  to do any-
 thing that  would harm  Apple.  Not for Apple themselves, but the consumer
 like myself would be harmed.  My interest in playing with Mac  software is
 what has helped bring me out of the deep depression I was in.  I have also
 met a friend who lives in Pasadena, CA who is in the same boat.   His wife
 died, and  at the  age of 60 sitting around waiting to die he developed an
 interest in Mac software, and now lives in his computer as I do.  That was
 until the FBI took his ROM set away from him.  He could never have done it
 without the emulator by Gadgets  Inc,  and  the  ROMs  I  sold  him.   The
 computer would have cost more than his car.

     This same Apple Inc. has now contacted the FBI to use them to stop me,
 when all they would have had to do is ask me to stop.  And all the reports
 show that  the FBI  has really done everything by themselves, so as to not
 involve Apple.  I even believed it for a while.  In order to  not hurt the
 persons who  finally let me know what really happened, I won't mention how
 I found out to the contrary.     Now I'm forced to  plead guilty  to char-
 ges, or  I will  be charged  with multiples  of the  same charges for each
 transaction, and other charges, which carry more time than me and my great
 grandchildren have  to live.   But the real reason I plead guilty was that
 I didn't want anymore local publicity than has already been published, and
 I've been  told you  can't beat the IRS or the FBI, anyway.  So far it has
 appeared in only one local paper,  and the  way it  was worded, mentioning
 guns without  saying that  they were  legally registered,  and using words
 like money laundering which most people believe has  something to  do with
 drugs,  has  caused  many  people  to  believe I must be involved with the
 Mafia.  My oldest daughter cried herself to sleep one night, when her best
 friend's father  told his  daughter that she wasn't allowed to talk to her
 or come to our home anymore,  because my  criminal gangster  friends might
 come after  me sometime and hurt his daughter.  And her dad is supposed to
 be an intelligent engineer at General Electric Company.  I wonder what the
 not  too  intelligent  people  are  thinking.  But since writing this, and
 receiving my sentence I have decide that, hiding things lets them hurt you

     It does  seem a  little out of proportion to tack on laws that carry a
 25 year sentence to a charge that carries a maximum sentence of  one year.
 And even though I understand that ignorance is no excuse, it's interesting
 that when I went to question people to find out  who created  all the lies
 on the  search and seizure warrant, I questioned my bank manager who along
 with denying that he said what was stated on the  report, went  on to tell
 me that  he was  asked why  he didn't  report me when I was making so many
 transactions under $10,000.00.  He told me that, he told them, he knew the
 form had to filled out for transactions over $10,000.00 but he didn't know
 it was against the law to do anything under that amount.  One of my attor-
 neys, after reading the law, said heck the way the law is written, I might
 have been guilty of violating it, in the past.   I told  him to  lower his
 voice, or  he might  be charged  next.   I don't  know how they can expect
 people to follow the rules, if no one seems to know the rules.

     It has been implied  though not  stated that  I was  going to  hide my
 income from IRS.  This is total bunk.  In the search warrant it was repor-
 ted that I told  bank managers,  and other  people, on  many different oc-
 casions, that  I was  trying to  cheat on  my taxes.   I talk a lot, but I
 don't think I would be that crazy, even if I really had  the intent.   And
 all of  them denied  it, when  I later  asked them.   Since I'm hoping the
 prosecution hasn't  gone as  far as  to make  things up,  it's either that
 someone tried  to score  some points  while talking  to an  agent, or they
 misread my attempts to hide my actions, and told themselves, that was what
 I was  doing.  There probably is no way to ever find out.  At another bank
 where it was stated that, I said the same thing, I have only talked to the
 young teller,  and I  really believed her when she said no one ever talked
 to her.  I'd guess the  information was  third hand  from her  boss, who I
 have never  talked, too.   So many people have supposedly said it, that it
 appears as if it's coming from a script.  I could go on and on about this,
 which serves no purpose.

     I guess  it's is  just that when you do unusual or questionable things
 people read into it what they want, too.  I even had the probation officer
 who came  to make  a pre-sentence  investigation report on me write in his
 report that I told him I  was going  to cheat  on my  taxes.   Now this is
 really nuts.   I  had told him when he was here that I had no intention of
 cheating on my taxes.  After he left, I called him to tell him something I
 had forgotten,  and ended  up telling  him again, just to make sure he un-
 derstood, that I had no intention of cheating on my taxes.  When a copy of
 his report came to me a few weeks later, it said I told him I was going to
 cheat on my taxes.  Since I had the right to object, I called  my attorney
 and had him get it removed.  That is, I hope, I never saw the final editi-
 on.  It's as if this fixation is in everyone's head.  In all  honesty, the
 investigator I  talked too,  was very fair in his report.  He probably was
 obligated to say this or something.  I really don't know.  All I  know for
 sure is that I doubt that I would have the nerve to falsify my income tax,
 knowing I would probably be audited, and I would have  had no  way of kno-
 wing how  much information  they would  have known.   I  told an FBI agent
 recently, that  knowing my  personality, it's  possible that  I would have
 pushed the  limits a  little, but  didn't even get to find out, and really
 even doubt that.  At one time I had thought of giving them an extra $50,0-
 00.00 beyond what I owed them, just to insure they wouldn't come after me.
 But, as my dad,  who was  head of  a local  branch of  the Ohio  State tax
 bureau for  many years  told me,  with the  IRS rules  the way they are, I
 probable would still have been charged with something.

     I had more money than I  needed, and  was trying  to straighten things
 out.   I did  many stupid  things that  may have  indicated I might try to
 cheat.  But everyone knows, it is serious  stuff to  make a  lot of money,
 and not  pay income taxes.  If I had to guess what I would have done, from
 past filing experience, I probably would have done, what I did in previous
 years.   Take the book you get from IRS, go down page by page, looking for
 the category things I had bought,  fell under,  and if  it looked  as if I
 could deduct  it, I would.  Because every thing written can be interpreted
 may different ways, I probably would have deducted too little or too much.
 I wonder  if anyone  even believes me, even my attorney may not, though he
 probably really doesn't care, he's just doing his job the best he can.  In
 fact that  seems what  everyone is doing, while covering their tail at the
 same time.  It's  real frustrating  when you  know your  own thoughts, but
 can't find  a way to explain them to others, without them reading in their
 own thoughts.  And even if you could, the system is set  up so,  that most
 of them  can't even  do anything about the chain of events anyway.  Here I
 am not being charged with trying to rip off IRS,  but yet  since the pros-
 ecutors feel that was what I was going to do, they have used other charges
 which can convict me without actually having to  charge me  with what they
 think I was going to do.  Something is definitely wrong with this system.

     As my  secretary, my  friends, my  family, and  myself have many times
 told the FBI, and if anyone is really interested, I  felt that  some day I
 might be  sued by  Apple as  attorneys have  told me,  so if it happened I
 didn't want them to be able to find my money.   In  fact most  of my money
 came from  out of this country via bank transfers, which appear on my bank
 statements which would be available at any audit.  I admit I  wrote checks
 to myself  to remove  the money from the bank, but I don't believe this is
 against the law, and I also  cashed most  of the  US checks  written to my
 name, which  is also not against the law, or the bank wouldn't have let me
 do it.  During two bankruptcies I've had creditors go into my  account and
 take all  they could find.  At one time I had no money for groceries, so I
 borrowed some money from my brother, and like an idiot put it in my check-
 ing account.   The next day one of my creditors took every penny.  I ended
 up going to welfare to get an emergency food voucher.

     I admit I didn't file income tax for a few years.  I wasn't making any
 money,  and  in  my  depressed  state, not really wanting to live anymore,
 filing income tax was low in priority.   I'd also  asked what  the penalty
 for not filing was.  and I was told that I would have to pay an additional
 penalty based on what I owed them, which in my  case was  nothing.   I un-
 derstand, unless  you make  a certain amount, which I'm sure I didn't, you
 aren't required to even file.  But I bet, if  you asked  10 attorneys, you
 would get either an I don't really know for sure, or 10 different stories.
 They don't even know all the laws.  I understand,  however, as consistency
 follows through,  there is  a law that says you must file, and another one
 that says you don't need to.  And you have to guess which one to use.

    The biggest mistake I made appears to  be  that  I  took  cash  from my
 checking  account  then  purchased  cashier's  checks  for an amount under
 $10,000.00 to buy things.  It seems there is a  law which  says it  is il-
 legal to try to avoid the $10,000.00 reporting amount.  I even admitted to
 the FBI and IRS that I  was trying  to avoid  it so  it would  be hard for
 Apple to find my money if they ever came after me, and no one ever told me
 this was illegal.

     Near the end of the year in which  I started  making money,  I hired a
 secretary to  type into my computer all the receipts and information I had
 accumulated in the past few years.   After  a few  months I  found she had
 written a check to her self for $800.00 and had forged my name, so I asked
 her to leave.  I later looked at what she  had been  typing into  the com-
 puter and found it was mostly garbage.   She was in pre-law at the Univer-
 sity of Cincinnati and even though she took the job, she didn't like being
 a lowly  secretary.  Since I had to start over and it would be too late to
 file income tax for  that year,  I decided  to put  it off  until the next
 year.   Around the  middle of  the next  year I hired another secretary to
 retype the information into the computer.  She  was running  a little late
 so I  filed for  an extension  on my taxes.  Before the extension was up I
 was raided by the FBI and the IRS, who didn't know I'd filed an extension.
 After they  looked it up they told my attorney that the $1000.00 I had put
 on the extension form, indicated that I was planning on paying only $1000-
 .00 in  taxes.  This is ridiculous.  I hadn't filed income tax for quite a
 few years, and had no idea of what I was going to have to  pay.   You just
 have to put something down anyway.

     I had  hundreds of  thousands of dollars going through my checking ac-
 count, and I'm going to try to claim I'm only going to  owe $1000.00.   As
 the joke  goes I may be stupid, but I'm not crazy, or am I.  If I was ever
 audited, which I sure would have been, after not having filed for  so many
 years,  they  would  surely  ask  for my bank statements, which would show
 this.  And I don't really believe any rational person  could believe this.
 But again they didn't charge me with income evasion.  And too many people,
 whom the IRS talked too, also knew I was trying  to bring  my taxes  up to
 date.  (E.g., My ex-wife, my secretary, my daughters, my father, etc.) Why
 don't they just come out and say that everything you do with money, has to
 be reported to the Federal Government, whether you pay taxes on it or not.
 And let everyone know it.  What happened  to the  constitution, and things
 like right  to privacy  etc.  They can now stop cars, and search them wit-
 hout reason or suspicion.  I guess the homes are next.  And with what they
 did with the CNN tapes, it looks like it's not far off.  Of course in that
 case they had to give the tapes back  because they  created too  much of a
 ruckus doing it, and CNN is pretty big and powerful also.

     In reality I had more money than I knew what to do with.  I was giving
 it away by the handfuls.  While  I  was  in  Tijuana,  Mexico,  across the
 border from  San Diego,  I gave away over $10,000.00 to skinny poor people
 on the street.  At my bank I overheard the teller ask an old man if he was
 sure he could live for the next week on the $7.25 he had left.  And here I
 was cashing a check for over $7,000.00.  So on the way out I  took a hand-
 ful of  $100.00 bills  and stuffed  them into  his shirt  pocket, and said
 Merry Christmas, even though it was in the middle of the Summer.  I didn't
 know what  else to say.  I gave away so much I really can't remember where
 it all went.  I bought all my kids new  bedroom sets,  while I  slept on a
 stack of  old mattresses,  using an  old busted dresser, I've since thrown
 away.  And the FBI knows all this to be true.  Even with  all the  money I
 was mostly depressed, and really didn't want much except a better computer
 which I bought.   If I  tried to  do some  electronic design  it seemed to
 bring to  mind my  past failures,  and I  got really nervous and shaky for
 some reason, and couldn't  wait to  quit.   I tried  learning to  fly, and
 bought an old plane because I was told that most small plane manufacturers
 were going out of the business, which would make small  planes more valua-
 ble.   But I soon got bored with flying and didn't even finish my license.
 It was funny when my ex-wife told me that the FBI had asked her  if I took
 trips out  of the  country with my plane.  I guess in their eyes, everyone
 who breaks the law is into drugs.  Even in my home  they thought  a bag of
 plaster of  Paris from  one of  my kid's hobby sets was some kind of drug.
 In reality I was afraid to fly my plane without an instructor.  After over
 50 hours,  I could take off and fly it but I don't land too well.  I guess
 I'll never be a pilot.

     The guns I bought turned out to be  a bad  idea because  of the stigma
 surrounding any  type of  weapon.  I didn't know anything about guns.  But
 when I saw on the news  that they  had put  a ban  on any  more imports of
 certain kinds of guns, and later my brother talked me into going to a Bill
 Goodman gun and knife show, I  realized that  they were  sure to  go up in
 value.   And it turned out as I expected.  The guns I bought are now worth
 over three times what I paid for them.   And  they were  all legally regi-
 stered, with $200.00 sent to the US government for each, with all the fin-
 gerprints, wavers  signed by  the local  sheriff and  90 day investigation
 done properly.   But  they didn't  charge me with illegal guns.  They just
 took them because I bought them  with illegally  gained money.   And every
 report has  mention of  them.  I also had a VCR, and a TV, but no one men-
 tioned them.  If they mention you have things as money, guns, or airplanes
 it helps  them make  you look  more like a gangster or something else bad.
 In advertising it's called sensationalism.  It's using  anything that gets
 a reaction from Joe public to achieve your goal.

     Most of  my days  were spent  on the phone helping people learn to use
 Apple software, since that was the only thing I still seemed to  enjoy.  I
 guess the  feeling that  you get  when you help someone learn something is
 the only enjoyment I could still get.  I spent my days  helping the people
 Apple should  have been  helping, and  they put me in jail.  Boy, that's a
 kick in the teeth.  I've  tried to  get help  from Apple  myself.   If the
 phones not  busy, and  you get through  to someone, they assume you are an
 idiot, and rush you off the phone as fast as they can.  In my case, I find
 I know more than most of the people I talk too.

     Today no  one knows the rules, and everyone is afraid to say anything.
 I asked an attorney recently if the way I was  selling a  computer scanner
 could be  against the  law, and  he told  me that if I thought it might be
 against the law he didn't want to know about it.  I had a meeting with the
 FBI,  where   I  was  questioned  about  consulting  with  many  attorneys
 concerning any trouble I  could get  into for  violating Apples copyright.
 When the  question came up, my attorney quickly announced that he had told
 me he didn't know the law  concerning copyright  violations, as  if he was
 defending himself.   I  talked with  three attorneys  to find  out if they
 could help me with this case,  and was  told the  FBI and  the IRS  are so
 powerful that  unless I  still have  lots of  money, or am squeaky clean I
 couldn't win.  One  of the  FBI or  IRS agents  told me  they have  a 97.8
 percent conviction  rate, which I guess means I'm to assume is because the
 are proficient in getting the real facts and evidence.  From all the inac-
 curate information  I've seen  them using, I find this hard to accept.
 When they came to search my home, they ran me off the  road in  a junk car
 that looked  as if  it had  a bunch of gangsters in it.  Then yanked my 11
 year old daughter out of the car hurting her arm.  Not seriously, however.
 They appeared  to be  excited because  their plans  of catching me at home
 were foiled by me taking my daughter to  her ice  skating class.   I guess
 they have  procedures, and  were only  doing their  job the  way they were
 trained.  I can't fault them with that.  I'm sure they didn't know what to
 expect.   I own guns, so I guess I could have been a crazy.  Actually I've
 only shot one of them once, on a farm.  They make too much  noise, and you
 can't hit  what you are aiming at.  The other ones I had reconditioned, so
 they would be attractive to, collectors,  and dealers.   And  I don't mean
 drug dealers.

     They served  me with a search and seizure warrant filled with manufac-
 tured evidence.  By whom I'm not  sure.    Most  paragraphs  ended  with a
 statement  that  quote  "The  information  provided  has been proved to be
 accurate and reliable by independent investigation."  And since most, were
 statements  that  I  supposedly  had  made, how do you prove them reliable
 unless someone else was standing there  at the  time, which  they weren't.
 Also for  me to have supposedly walked up to a bank manager and say I want
 to structure my transactions to avoid  paying income  tax would  really be
 insane.   And, as  I mentioned they denied it.  There are also many things
 which have been done,  which are  obviously illegal,  but to  mention them
 would put  individuals within  the system  in bad light, which is not what
 I'm trying to do here.

     I'm sorry if it appears that I'm trying  to excuse  my actions  by at-
 tacking the  system which  is charged  to uphold  the law.   But they have
 exaggerated, maybe even fabricated, and used whatever necessary to prosec-
 ute me,  for laws that most people don't know exist, and probably couldn't
 understand if they read them, so I feel I have the right  to bring  it all
 out.   Obviously I  can't blame  anyone for what I did.  No one twisted my
 arm.  It's just that they  have a  law for  almost everything  you do, and
 everyone is afraid to stand up against the system.  Even the people within
 the system.  They tried it in the 60s, and  lost.   And they  keep passing
 more laws.   I'm  waiting for them to attach at 25 year law to jaywalking.
 The way the laws are worded I bet, if you  made any  money doing  it, they
 could find  a way.  And the law they used was obviously  passed to be used
 against drug dealers.  Every other paragraph says something about drugs.

     The only thing I  know about  drugs is  what I  see on  television.  I
 tried marijuana  once in  the early  60s but  I don't  like the feeling of
 losing control of my faculties.   I won't  even have  more than  one drink
 when I  eat out.  And lately with the laws the way they are, I'm afraid to
 have even the one.  It really upsets me to think that, so many people, are
 so dissatisfied with their life that they need to use substances to escape
 from the  realities.   With all  the pressures  I've been  under lately it
 would be  so tempting to want to escape.  I realize it may help me escape,
 but it makes life harder on  those around  me who  are trying  to deal the
 best they can with life which is tough enough.

    Now I'm  being forced  to help  go after and prosecute other people who
 don't even know they are breaking the law, and are also not really hurting
 anyone.    I'm  being  asked  to  help convict xxxxxx.  Heck, I hear Apple
 didn't even know they  weren't real  until they  busted one  open xxxxxxxx
 and I  never talked  about it.  I'm not saying this to help xxxxx.  It's a
 shame, but he doesn't realize that,  if you  get their  attention, they're
 going to  get you.   They  decide if you broke the law or not.  The FBI is
 getting everyone these days.  I saw the other day on the  news, where they
 walked into  a hotel  room and  took tapes from CNN, without even a search
 warrant.  No wonder we get along with the USSR so well these days.   There
 doesn't appear  to be  much difference between the FBI and the KGB, except
 that I don't believe the FBI beats people.  Of course I'm not sure the KGB
 does anymore  either.   But it's  possible that  I'm wrong on both counts.
 This I find very distasteful, but if  I  don't  help  them  I'll  get more
 charges, which affects my family.

     We seem  to be  trying to  clear up all the crime in the world, with a
 big fervor.  What will we have, if we ever accomplish it.   For  one thing
 many unemployed  attorneys, agents,  and judges.  We'll all drive the same
 kind of car, because to think or be different from the next guy will  be a
 crime.   As people  begin obeying  most of  the heavy  laws, we will start
 charging people with looking  funny, so  the attorneys,  and law enforcers
 can hold on to their jobs.  First we will build more jails to hold all the
 violators, until half the population is in jail.   Then  as they  start to
 obey all  rules we will make up things that people are doing wrong.  Even-
 tually we will be  the  robots  that  the  futuristic  movies  talk about.
 Sounds ridiculous  doesn't it.  The Germans were almost able to do it with
 the Jews, but if history tells  us  anything,  eventually  the  people are
 going to be upset.

    I made some mistakes, and I'm not really blaming anyone.  I didn't know
 copyright violation was so serious, and the rest are just laws created for
 one thing then used for another, because they feel I was probably going to
 cheat on my taxes.  But that is the way the chips  fell, and  I'll take my
 punishment, and  try again  for the forth time.  I often wonder if I'm not
 really crazy, to keep trying when the obstacles are stacked so high.  They
 say a  new business  has a  one in  3000 chance  of making  it.  And their
 definition of making it is that they just continue to stay in business.  I
 bet the odds against making a profit are even higher.  For me, now it will
 be even harder.  I have a credit record that looks as if a bomb dropped on
 it, and  now I'm  a felon.  Well, only about 20 years left and I'll be too
 old to try.  But again my  grandfather  was  a  millionaire,  lost  it all
 betting on  the ponies,  as he called it, and at 98 he was still trying to
 get back to where he was.  I don't know if I can take another 40  years of

                      E N D   O F   S T A T E M E N T

The above was a statement prepared by D. Hayes to be read to the Judge at
the conclusion of Hayes' trial and sentencing.

     Part  II  of  this  article  will  appear next week, in it, the actual
     charges levied against D. Hayes are detailed and explained.


 > DENNY HAYES STR FOCUS?    * EXCLUSIVE! *   "..if I single someone out.."


     STReport  has  obtained  directly  from  DENNIS  HAYES  his  very  own
     statements concerning his arrest and ultimate conviction for copyright

 by Dennis "Denny" Hayes

 Part II

    Well, as I stated, that's the statement I wrote, but  was later advised
 not to  read, because  the government  doesn't like  you to say bad things
 about them.  I was charged with copyright violation which  carries a maxi-
 mum of  one year  in jail.  A charge of, what is called, structuring which
 carries 5 years max was added, which says  any money  transactions you do,
 can't look  as if  you intend  to not  pay taxes, whether you intend to or
 not.  And a final charge  of money  laundering which  carries 20  years in
 prison max,  because I bought things with my money, even though most of it
 came from my checking account, and into my  checking account  legally, and
 was on  bank records.   For  you intellectuals interested in the law, here
 are the charges, and the laws supporting them:

                                * * * * * *


 COUNT 1 - Money Laundering of Monetary Instruments:

    That from on or about October 1988, up to and including July  17, 1990,
 in the Southern District of Ohio, Dennis W Hayes, did knowingly, willfully
 and with intent to engage in conduct constituting  an attempt  to or evade
 or defeat  payment of  income tax (Ref 7201), conduct and cause to be con-
 ducted, financial transactions affecting interstate commerce, knowing said
 financial transactions were conducted with property, to wit: United States
 currency, and checks that were the proceeds of specific unlawful activity,
 that being  the infringement  of a  copyright.  This is a violation of USC
 1956(a)(1)(A).  Ref: 7201 Attempt to evade or defeat tax  (I wasn't charg-
 ed with this).

     Any person who willfully attempts in any manner to evade or defeat any
 tax imposed by this  title or  the payment  thereof shall,  in addition to
 other penalties  provided by  law, be guilty of a felony and, upon convic-
 tion thereof, shall be fined not more than $100,000.00, or  imprisoned not
 more  than  5  years,  or  both, together with court costs of prosecution.
 Ref: 18 USC 1956(a)(1)(A) Laundering of monetary instruments.

    Whoever, knowing that the property involved in a  financial transaction
 represents the  proceeds of  some form  of unlawful  activity, conducts or
 attempts to conduct such  a financial  transaction which  in fact involves
 the proceeds of specified activity with the intent to promote the carrying
 on of specified unlawful  activity, or  with intent  to engage  in conduct
 constituting an attempt to evade or defeat payment of income tax, shall be
 sentenced to a fine of not more than $500,000.00 or twice the value of the
 property involved  in the transaction, whichever is greater, or imprisoned
 for not more than twenty years, or both.

     This is one of the laws pushed through under the  excuse that  we need
     to stop  the drug  dealing gangsters.   It's even under the controlled
     substance act.  But we see where they use it.

     In other words if you make illegal money,  it's one  violation, and if
     you do anything with the money you make, it's a greater violation.

     It's interesting  that an  attempt to  evade or defeat the tax carries
     only 5 years, but looking as if you might not  pay your  taxes carries
     20 years.   Actually  I've found that actually not paying it (IRS Code
     7202) also only carries a 5 year sentence.

                                * * * * * *

 COUNT 2 - Copyright Infringement:

     From on or about October 1988, up to and including  July 17,  1990, in
 the southern  district of  Ohio, the defendant, Dennis W. Hayes, did will-
 fully and for the  purpose of  commercial advantage  and private financial
 gain infringe  the copyright of Apple Computer Inc. of Cupertino, Califor-
 nia #TX1640052 protecting the computer program stored on  a 128K  ROM com-
 puter chip,  in that  the defendant,  Dennis W.  Hayes, did cause the pro-
 tected computer program to  be copied  onto blank  computer chips, without
 authorization of the copyright holder, in violation of Title 17 USC 506(a)
 and Title 18 USC  2319(b)(3) Ref:  Title 17  USC 506(a)  Copyright infrin-

     Any  person  who  infringes  a  copyright willfully and for purpose of
 commercial advantage  or private  financial gain  shall be  fined not more
 than $10,000.00 or imprisoned for not more than one year, or both.

     This  one  I'm  obviously  both  morally,  and legally guilty of, even
     though I was told I could only be sued by Apple.

                                * * * * * *

 COUNT 3 - Structuring Transactions to Evade Reporting Requirements:

    On and between June 8 and June 29,  1990, in  the Southern  District of
 Ohio, the defendant, Dennis W Hayes, for the purpose of evading the repor-
 ting requirements of USC 5313(a) requiring domestic financial institutions
 to report currency transactions of $10,000.00 or more to the United States
 Department of Treasury, did knowingly, willfully  and intentionally struc-
 ture and  assist in  structuring a  transaction with  one or more domestic
 financial institutions in that the defendant,  Dennis W.  Hayes, purchased
 and caused  to be  purchased with  United States  Currency, four cashier's
 checks in the amount of $9,000.00  each,  payable  to  the  Union  Bank of
 Switzerland, in  violation of  31 USC 5324, and 5322(a).  Ref: 31 USC 5324
 Structuring transactions to evade reporting requirement.

    No person shall for the purpose  of evading  the reporting requirements
 of section 5313(a) with respect to such transaction structure or assist in
 structuring, or attempt to structure or  assist in  structuring, any tran-
 saction with one or more domestic financial institutions.

 Ref: 31 USC 5322(a) Criminal penalties;
   A person  willfully violating this subchapter or a regulation prescribed
 under this subchapter shall be fined not more than $250,000.00, imprisoned
 for not more than one year, or both.

     To make  a law  that you  have to  tell the  government about all your
     financial transactions whether you pay your  taxes or  not, sure seems
     like a  violation of  the Constitutional right to privacy.  But from a
     moral point of view it's not a bad law, as long as  the information is
     used fairly  and evenly, but if past history is any indication, and as
     in this case, it will be used as a means to increase  the sentence for
     a crime  above what  the creators of the primary violated law intended
     when they laid down the sentence  for  the  violation,  and  any other
     purpose which suits the governments needs.

                                * * * * * *

 The following is the statement of damages from the Pre-Sentence Investiga-
 tion report:

    The primary victim in this case  is the  Apple Computer  Company.  How-
 ever, the  impact on Apple is unknown and may never be quantified.  Accor-
 ding to a representative  from Apple's  legal department,  the defendant's
 behavior is  not widespread.   Nevertheless,  Mr. Mark Aaker, attorney for
 Apple, suggested for each  counterfeit part  that Hayes  sold, potentially
 represents one  MacIntosh computer  not sold  by Apple.   The attorney was
 quick to point out, However, that he was unable to  produce the percentage
 of those  individuals who  would have  spent over $2000.00 for a MacIntosh
 computer had they not had the opportunity to buy the defendant's relative-
 ly cheap  set of  computer chips that would "convert the purchaser's inex-
 pensive computer" into one as powerful as the MacIntosh.

    A second victim impact  expressed by  the attorney  for Apple concerned
 the fact  that Hayes  has virtually  flooded the market with his fake com-
 puter chips.  As a result, this may cause Apple  a severe  service problem
 in the  future when  individuals, thinking they have actual Apple computer
 chips, begin to send the faulty ones in to Apple  for warranty  work.  Mr.
 Aaker indicated that at present such losses cannot be estimated.

    Finally, Mr.  Aaker related  that the  primary harm caused by Hayes was
 that he provided an opportunity for  others  to  do  the  same  thing, and
 therefore, advanced  "the bad  intent of others and facilitated additional
 fraud."   The US Government  was a  secondary victim  because of  lost tax
 revenue due  to the  income generated  by Hayes.  The government, however,
 has not charged Hayes with any tax violations.

     They admit they don't know if there were  any damages  to Apple except
     that if  I get away with what I did someone else might do the same, or
     that Apple might worry about repairing a part that only  cost them one
     dollar.  And I really don't understand how the government was damaged,
     since they didn't wait to see if I was going to pay  my taxes  or not,
     and they  took over $300,000.00 from me, which left me broke.  I'd say
     they were the winners.

                                * * * * * *

                              Hayes Summation

     In the past few months, I've seen so many laws  like these,  which the
 average person  doesn't know about, that when I now hear a person say, I'm
 doing nothing wrong, they can't get me for anything, I start to feel sick.

   To summarize, the lawmakers of  this  country  are  passing  laws, under
 false  pretenses,  in  an  attempt  to drastically increase the penalties.
 Thereby circumventing the penalties  written into  the original  laws, for
 violations of these original laws.

   Then in  an attempt to make the application of these laws fair, they are
 then structuring the  application,  to  suppress  the  normal  human moral
 opinions  of  both  the  law  enforcers, and defendants, while at the same
 time, using these same opinions to pass and enforce these very same laws.

    Your guilt and sentence is now decided by the prosecution,  who decides
 what you are charged with, with a little adjustment for your past history,
 and how much you are willing to help them nail (accuse &  convict) others.
 And with a big adjustment for your wealth and popularity.  And the democr-
 atic controls  of appeal  are by-passed,  by their  unaccountability.  The
 only hope  you have  is to  get your  attorney to attempt to negotiate the
 sentence down from the 1000 year  sentence you  start with.   And  you are
 supposed  to  feel  satisfied  with  a  big reduction to 26 years max on a
 charge that should have had a max of 1 to 5 years to start with.

    The investigators are just doing their job, and  the judge  then has to
 follow guidelines  he may  not even agree with.  Give it a few more years,
 and we can replace the judge with a computer.  You will  never be  able to
 replace the  system with  a computer however.  If you did, it would charge
 everyone with every law they violated,  and  over  75%  of  the population
 would be  sentenced to  over 1000 years in jail, and the average life span
 isn't up to that point yet.

     They look around, and say, but we are making life better for everyone.
 No, they  are making  life better  for the  people who  can hire a team of
 attorneys to guide them through the obstacles, and at the  same time dest-
 roying the incentive for anyone below them to be creative, take risks, and
 thereby improve society.  If they are really doing what they say, then why
 are recent  reports saying  the gap between the rich and the poor has tri-
 pled in the past two years.  And, they can't seem to understand why people
 take drugs  to escape,  or why the teenage suicide rate is up.  They can't
 understand why there is so much apathy in college today, yet they  can see
 what it has done to Russia.

     The students themselves in a two hour special on TV said why try, they
 tried to improve things in the 60's and they wasted  their time.   And any
 gains they  may have  made have  since been  taken away.  Look, I know the
 drive for one person to impose his wills on another, has always been here,
 and I  doubt that  it will  ever change.   We  don't understand, therefore
 like, anyone who is different than us, which  causes us  to want  to knock
 them down.  Why can't we let people alone unless they are hurting someone.
 And if they are really hurting  someone, make  them show  it, or  at least
 file a complaint.  Not just prosecute someone for breaking laws because it
 sounds like something to  do, or  that someone  is making  more money than

     If the  law is intended to protect the people, why do the charges, and
 the sentences depend so heavily on how much  profit the  individual makes,
 as if  the real  crime is making more money than the next guy, rather than
 on the damages caused.  Or  is the  system too  inept to  find the damages
 caused.   Under this  system, I  understand I  received an additional year
 because I made over $300,000.00.   If it  is your  idea, of  an attempt to
 make things fair, boy are you missing the boat.

    They get  away with  it because,  no one really cares enough, or is too
 scared to say anything until it affects them directy.  Well, give it time,
 and it will.  And you can take that to the bank.

    To make matters worse, my charge didn't even fit into the system.  When
 I was officially arrested, they tried to enter me into the crime computer,
 and there  wasn't even a category for me.  So they put me under miscellan-
 eous something.  The people charging, and defending me don't  even unders-
 tand the computer world.  Other than the word processors their secretaries
 use, they do everything with paper,  pencils, and  voice recorders.   They
 couldn't make  a rational  judgement on anything having to do with comput-
 ers, if their life depended on it.

    In my case, they had to  hire outside  help to  try to  explain to them
 what I was doing.  And I know for sure they still don't really understand.
 They use terms like rails for the plastic tubes which  computer chips come
 in.  They talk about the cost of repairing a computer chip as if it were a
 machine you could take apart, and fix.   They took  all the  logic chips I
 used in designing products, while I was in the design business, since they
 didn't understand the difference, and because  they looked  like the other
 ones I  had.   I even had a box of Atari floppy drives, and it seems their
 expert didn't know what they were, because they  had to  ask me  what they
 were.   This I  really can't believe, however.  It sounds more like a com-
 munication problem to me.   And  my attorney  told me  they didn't  have a
 precedent on  my crime to base anything on.  By the sentence, it appears I
 fit in with murderers, and drug dealers, somewhere.

    Let's see, I violated a copyright, and I did things  that made  it look
 as if  I might  be able  to try  to cheat  on my income tax which everyone
 knows was an attempt to hide my  finances  from  Apple.    And  I actually
 didn't file for a few years prior, although I made no money.

    The maximum  sentence for copyright violation is one year.  The maximum
 sentence for actually lying,  not paying,  and cheating  on your  taxes is
 five years.   And somehow I ended up with a twenty-six years charge, while
 Pete Rose, who actually  cheated, and  admitted it  got 5  months.  Hmmm..
 Must be  some new  kind of  math.   But I guess I'm not quite as bad as Al
 Capone, however.  He received 11 years.

    Now I've been sentenced to five years in prison, after which I  have to
 spend two years on probation, and I must see a psychiatrist for ten months
 of the two years.   What  this is  for I'm  not sure.   I'm  guessing it's
 because I  thought about  killing myself  a few years ago.  But if that is
 what they are worrying about, why do they want to  wait five  years to see
 if I'm  this nuts.  It makes me wonder who is really nuts.  Well I hate to
 bust their bubble, but  I've been  knocked down,  kicked, stomped  on, and
 rolled over  so much,  I don't  believe anything  they could do would ever
 again make me want to do that.  I have my moments when I really get upset,
 and now  I've got  ulcers, but  the more they stomp, the more determined I
 get to fight back.

    I was told, by my attorney, that I received an  additional two  to four
 of the  years for  deciding not to help them ruin other people's lives who
 were helping many and hurting no one.   In fact  I called  xxxx secretary,
 and told  her to  tell xxxxxxx  to watch what was said because the FBI was
 probably investigating..., they told me they could bring  additional char-
 ges against  me for  obstruction of justice.  I wonder what Daniel Webster
 would say about this use of the word justice.  xxxxxx, being  the xxxxx he
 is, called the FBI, and told them I had called, to make himself look good.
 The only thing I have left is my own self respect.  They have taken every-
 thing I  own, my money, my house, my car, and now the best part of my life
 (my daughters).  They will grow through the  most important  part of their
 life without  me.   I may  have made some mistakes, but I hurt no one, and
 helped thousands, and for  that they  want to  destroy me,  and my family.
 But I  am not  going to  help them, in any way, do the same to anyone else
 who is not hurting anyone, even people like xxxxxx.  If you  think this is
 really a free country, you need mental help.  You are free, as long as you
 are a puppet, and don't upset any of the big boys.

    Folks we may as well bend over when the big  corporations tell  us too,
 then spread  when they  tell us  too.  If you try to fight the system, you
 lose.  I wonder  if I  had a  copyright, and  Apple violated  it, if Apple
 would go  to jail.  But, I did have an emotional collapse a few years ago,
 and set myself up for it.  Though the fact that they could have  done what
 they did anyway, scares the hell out of me.

    I have  three wonderful  daughters.   Summer (13) who through my encou-
 ragement, has pursued her dream of  becoming a  gymnast, since  she was 6,
 and is  now a level seven on a 1 to 10 scale where a level 10 is preparing
 for the Olympics.  She will now have to quit, because my  ex-wife will not
 be able to afford it on her income without me.  She also runs straight A's
 in school even though she has only an average IQ, because I spend the time
 to help  her.   My ex-wife  isn't too  sharp in math, science, etc, so I'm
 sure these grades will drop.  She is also the most emotional, and I really
 don't know what missing me will do to her.

    The next  oldest is  Shanna (11).   She also gets mostly A's in school,
 but where Summer has to work  hard  in  gymnastics,  Shanna  is  a natural
 athlete, and  has been taking skating since she was 2.  I watched her do a
 Christmas ice skating show for  the  public  downtown  on  Fountain Square
 yesterday, and  she was  so good I had a hard time holding back the tears,
 knowing she will now probably have to quit.

    Now there's Maegan (8).  She's the artist.   She  doesn't seem  to like
 Athletics much, but give her a piano or keyboard, and she'll really surpr-
 ise you.  Fortunately, I don't think she will need to stop.  Piano lessons
 aren't that expensive.

    I have to grit my teeth to say it, but, "Merry Christmas, Merry Christ-
 mas, Merry Christmas, Merry Christmas, and Merry Christmas."  That  is one
 for each  year I  must spend  in prison.  And don't let anyone fool you by
 thinking I'll  only get  a year  or two.   There  is no  parole in federal
 prison anymore.   You  get a  few months off for good behavior, but that's
 it.  And I'm told, if I agree to help them destroy the lives  of others, I
 might get  a little  more time  off.   I have  to report  to the prison on
 1/8/91 for five years.  But,  I'm told,  the least  I could  get is  2 1/2
 years, and  just to  save my  butt a  little I'm  not going  to do this to
 other people's kids.  I'm sorry if this makes me appear unpatriotic, but I
 don't feel too patriotic at the moment.

    Merry Christmas  again, and  see ya in a few years.  I wonder what com-
 puter systems will be like in five years.   The  way I  feel now,  I'm not
 sure I ever want to see one again.

                              Dennis W Hayes
                           7048-47 Waterview Way
                           Cincinnati, OH 45241
                            Phone 513-779-7998