FLETCHER & FOGDERUDE, INC. 5412 N. Palm Ave.

# 101 Fresno, CA 93704

Telephone: 559-431-9710

May 20, 2010

Dr. Steven Booth 5717 Roundup Way Bakersfield, CA 93306 VIA E MAIL: drbooth123@yahoo.com RE: USA v. Booth Dear Dr. Booth: This letter will serve to confirm our conversation of May 19, 2010. Notice of Additional Federal Tax Lien Filing I have forwarded to Jim Braun, our retained defense tax CPA a copy of the documents you emailed to me May 17, which included a Notice of Additional Federal Tax Lien Filing dated May 3, 2010, the IRS Revocation of Certificate of Release of Federal Tax Lien i.e. 3 pages recorded April 19, 2010, IRS Notice of Federal Tax Lien i.e. 2 pages filed April 19, 2010, Certificate of Release of Federal Tax Lien, 2 pages dated April 18, 2010. Jim states that the Certificate of Release of Federal Tax Lien filed March 15, 2010, was issued in error. When the ten year statute runs, the IRS automatically files the Notice, often unaware if there is pending civil and/or criminal proceedings which would toll the ten year statute. Several months later the IRS discovered that a criminal indictment was filed April 2009, prior to November 2009, i.e. the 10 year statute of limitations date, which indictment tolled the running of the statute. As a result they subsequently recorded in April 2010 the Revocation Certificate, a copy of which was forwarded to you. Jim Braun is not an attorney and therefore, his opinion concerning this tax assessment may or may not be correct.

Dr. Booth May 20, 2010 Page 2 I am not a CPA or tax attorney and I do not practice in civil and/or administrative tax matters. Therefore, I can not and will not give you advice on whether or not the IRS has lawfully revoked their Release of Tax Lien. I recommend that you and your wife immediately seek legal advice from an attorney in Bakersfield who specializes in Tax Law, and that you do so immediately as there may be a very short time period for you to appeal the recent IRS action, if there is a legal basis to do so. The IRS letter dated May 3, 2010, states that you have the right to appeal their decision under the Collection Appeal Program as described in publication 1660, which they enclosed. I did not receive a copy of that publication from you. Please read it immediately as it should explain the time periods for filing an appeal. It is my understanding that last year you consulted with a Bakersfield tax attorney concerning the IRS liens. I suggest that you see him as soon as possible. Brauns Analysis of 95-97 Returns Mr. Braun has exhausted his court fees performing services, which included trying to confirm whether the Schedule D forms to your 96-97 tax returns were accurate as to the stocks and bonds reflected as being sold by you during that time. His opinion is that the Schedule Ds are accurate. He has compiled information from your stock broker, from you, from the person who prepared your returns and independently, which confirms your ownership interest in approximately of the stocks and bonds listed on the Schedule D. He has confirmed that your signatures are on the returns and that the numbers contained on the Schedule Ds are consistent with other entries on your 1040 returns. But for running out of funding, he may have been able to independently confirm your ownership of the remaining stocks. It is very unfortunate that we have expended most of Mr. Brauns time and funding on this distraction. His time could have been better spent on other more pertinent tax matters. Jims opinion is that your 95 tax return was accurate and that your 96-97 tax returns were accurate at to the Schedule Ds, but inaccurate in failing to include your taxable income from your business i.e. approximately $ 230,000 - $ 260,000 each year. When you and Mrs. Booth failed to appear for tax audits to prove what your tax basis i.e. purchase price, was for the stocks and bonds sold in 96-97, the IRS used a 0 tax basis, thereby treating the entire sale price as profit.

Dr. Booth May 20, 2010 Page 3 Jim will prepare a written opinion of what your true tax liability would have been if you reported your business income and provide the correct basis for the stocks and bonds sold. That tax computation will not reflect interest or penalties and will be substantially lower than the IRS assessment amounts. I will forward to you a copy of his written opinion, which I should have shortly. Settlement I suggest that you and Louise and Ms. Hart and I meet to discuss how we wish to proceed. If we collectively agree, I will then meet with Mr. Cullers and share Mr. Brauns revised tax liability determination and see if the government will use that for purposes of the plea and future restitution. If we have not reached a settlement with the government by the next hearing date of June 11, at 9:00 a.m., the governments offer of settlement will be withdrawn and the court will set a motion hearing and trial date. Please call me to schedule a joint meeting next week, if possible at my office or Ms. Harts. Should you have any questions, please call. Very truly yours, FLETCHER & FOGDERUDE, INC.

Eric K. Fogderude

EKF/ms Cc: Ms. Hart via email