John and I left Medina early to meet with Conrad and Conrad's associate, Waldemar Wojcik, at the bankruptcy court in Akron, Ohio.

As we were confident Conrad would have all the necessary contracts and agreements ready for signing, we waited for the rest of the conspirators to arrive.

It was agreed by John and me to have Wally represent us in the Courtroom with John while Conrad and I signed the papers in a Witness Room right outside the Courtroom.

The Court had reserved the entire day for the Confirmation Hearing and now after nearly 18 months, Pro Arts was "ready" to come out on the Chapter 11 and begin its "new" business with new shareholders and very little debt! Newman and Bedell met with Conrad and me to sign the Real Estate agreement, John's employment agreement and my employment agreement. These were already agreed upon at the June 7th meeting in Dietrich's office so there should have been very little to discuss. But this was not to happen.

Newman began questioning the wording of certain paragraphs that Conrad had written in the Real Estate Agreement.

Most of the questions were minor and required very little modification. After Conrad agreed to the minor changes, Newman placed the unsigned Real Estate Contract on the table and began to slowly read John's employment agreement.

Again, Newman began to question the wording of that agreement. After Conrad agreed to the minor changes, Newman placed that unsigned agreement next to the unsigned Real Estate Agreement and Newman began to read very slowly my employment agreement.

Newman took great care to question the smallest detail that would, if corrected, not alter the essence of the agreement.

Again Conrad accepted these minor changes asking Newman for Bedell's signature on the agreement.

Newman placed the unsigned employment agreement down with the other two agreements and picked up Mike's agreement to start the whole question and revision process all over again.

Meanwhile, Dietrich was in the Courtroom presenting evidence to the Court and Creditors present so that the long process of confirming the plan would go slowly forward. Both John and Wally were listening to everything and taking notes on the progression. After a few hours of Newman's constant nit picking of each of the contracts and agreements, Conrad was beginning to sense their reluctance to sign any agreements.

Each time Newman and Bedell wanted something, Conrad would agree to give them the point unless it greatly affected our agreed upon position and then Newman would cave in and go on to another agreement without having Bedell sign anything.

It was nearly 11:00 AM and the Hearing was now in process for a few hours.

Suddenly, John, visibly shaken, entered the Witness Room where we were negotiating the final agreements. I had not seen John this distraught since the filing of our Chapter 11 nearly 18 months earlier.

I asked him what was wrong. He said as he was shaking, the bank had "sold us down the river." Bedell and Angona did not intend to buy the real estate! Old Phoenix National Bank was going to press their pending foreclosure and enter into an agreement with the new company without us having the real estate deal!

When Conrad heard this statement from John, he looked at Newman and Bedell immediately realizing that they had deliberately stalled on signing the agreements because they had made a deal with Old Phoenix National Bank! Conrad was so furious with this revelation that he immediately closed his file folder with all the agreements inside and said, "You no good son-of-a-bitch! If that's the way you want to play it, then we'll just have to have the Court hear these issues!" Bedell and Newman could not even look Conrad, John or me directly in the eyes.

Bedell being a light complexed man became suddenly "flushed" with color. Conrad picked up his files and we all proceeded into the Courtroom while the Court was still in process.

When Judge White asked Conrad to explain to the court where the problems existed, Conrad stated that he had devote a full week to completing the agreements that were to be signed by Bedell and Angona.

They had deliberately led us "down the garden path" with these negotiations which began nearly eight months prior to this hearing.

Conrad stated that we would have filed objections in a timely manner had we not been in negotiations with these individuals.

He stated, "these people who are absolutely unconscionable; and their conduct in these matters, I think, entirely reprehensible if not fraudulent." Conrad went on to request an adjournment of the hearing until such time that the agreements could be agreed upon.

As the details of the agreements were discussed in the courtroom, it became very clear to me that everyone of the conspirators had plotted to remove both John and me from the Pro Arts company.

While they had initially agreed to the employment agreements and a purchase of the real estate in the beginning of the Chapter 11, they had continued to chop away the dollars and throw everything into a few minor deal points which represented big dollars.

So big, that to view the final outcome of the agreements without any reference to the origin of our demands would make John and me look like thieves! This is what all the conspirators had relied upon.

White, as a feeble court judge could hardly keep track of the players let alone the transactions.

It was White's incompetent ability as a federal judge that allowed these young enterprising attorneys the opportunity to put a Chapter 11 together and literally screw everybody! White often referred to Morganstern as "Morganstein" and could not understand what was transpiring in his own courtroom.

While Morganstern continued to defend our position on the employment agreements, Newman and Dietrich continued to mislead White stating that our demands were excessive and burdensome on the company.

When the matter of the real estate contracts finally surfaced, it was disclosed that Pro Arts was behind in $94,000.00 in post petitioned rent to John, Mike and me.

Under bankruptcy law, the Debtor has to make sure that all post-petitioned rents are paid prior to confirmation of the plan.

If the Debtor cannot pay the post-petitioned rents, then the Debtor has to have a signed agreement between the Landlord (our families) and the Debtor that it will pay the rents in a specific way or the Landlord can evict the Debtor.

This could put the newly organized company into Chapter 7, liquidation! All the D.I.P. Reports to the court showed the back rents due JMT and as of June 10th, Pro Arts had to pay $94,000.oo just to be up-to-date on the rents.

A new agreement had to be made for a lease with the new company or the company might not have a place to conduct business! White literally ignored this very important issue. In fact, after I reviewed the Old Plan, and the testimony of Stewart on the Witness Stand, I found that Diet- rich did not include any money coming into the new company at the time of confirmation for rent payments! This best illustrates the Old Phoenix National Bank's deal to steal the Real Estate from John, Mike and me! If we would have been paid the $94,000 in back rent, we could have paid Old Phoenix the $76,000 in back mortgage payments.

We would have been current on our real estate loan and still have nearly $18,000 in cash to live on! Dietrich and the other conspirators were relying upon Old Phoenix to press their pending foreclosure.

Old Phoenix would take the property without "due process of the law," enter into a new agreement as Receiver of the real estate and allow Pro Arts to continue renting the property until Old Phoenix could bid it in at time of the auction! Nearly four years later, I had the Court Record transcribed for the lawsuit that I had filed in federal court and the following is the court's record of what actually was stated in the room when Conrad and I were with Bedell and Newman:

WHITE: "All right. Let's stop right now. Mr. Schwemler, stand up please. You represent the Old Phoenix National Bank; is that correct?"

SCHWEMLER: "That's correct, your Honor."

WHITE: "What's the status on the negotiations with the Old Phoenix Bank?'

SCHWEMLER: "We have accepted the Plan which Pro Arts has proposed."

WHITE: "Well. I know you accepted the plan, but as far as the mortgage you have on this real estate."

SCHWEMLER: "We expected that the defaults would be cured on the mortgage. The defaults on the mortgage amount to $76,000.00. Assuming that not to be the case Old Phoenix would have to proceed on its pending mortgage foreclosure. THAT IS THE ONLY ARRANGEMENT OF WHICH I AM AWARE."

Throughout the entire nine months with Bedell and Angona managing Pro Arts, Old Phoenix had made several statements concerning the curing of both the equipment loan and the real estate loan before the bank would accept the Plan.

This was also stated to me directly by Schwemler, Hallman and Bramley. This representation was also put in writing in a few letters and sent through the mail.

Now Schwemler stated to the Court in the Confirmation Hearing that he was not aware of any representations except those that he reiterated in the Courtroom.

Old Phoenix National Bank, Hallman and Bramley sought to put a real "feather" in their hats by stealing the $1,000,000 building and entering into the lease with the new Pro Arts.

Morganstern objected to this in Court and threatened to Object to the Plan on the Real Estate Agreement alone.

With the law behind him and the fact that a New Amended Plan and Disclosure Statement had been filed only one day before the hearing (Filed on June 9, l983), no one realized that the old Disclosure Statement and Plan had been changed.

This would have been enough to allow an objection as well as an Appeal even if White ruled against the Objection.

Dietrich had indicated in several of the previous hearings as well in the Confirmation Hearing that day that Pro Arts could not withstand any appeal.

Dietrich even stated that the New York Investors had threatened to pull out of their funding if there was any appeal which would delay the confirmation and funding of the plan.

White was very paranoid about the funding of Pro Arts because Bedell and Angona had "run out of money." White had requested Dietrich to instruct the new investors to have cash or certified funds on the day of Confirmation.

If not that, then White insisted upon the funds to be on deposit in a named accredited banking institution before the Confirmation Hearing was held.

Dietrich had fraudulently prepared the new Amended Plan and filed it on June 9, 1983.

This was done deliberately because everyone that had received the previous Disclosure Statement and Plan had no knowledge of the changes that had taken place in the Amended Disclosure Statement and Plan.

Only the conspirators knew and they were ready to go into Court the next day and confirm those changes without truly disclosing those changes to the Court or creditors. The conspirators could later say, "Those changes were in the Amended Disclosure Statement and Plan which was on file in the Clerk of Bankruptcy Court's file in the Courthouse the day the hearing was held. You should have read them before the hearing IF YOU HAD ANY OBJECTIONS TO THEM!"

Dietrich listed the sixty per cent (60%) Controlling Shareholder to be Roger Faherty in care of Rooney Pace, not Rooney Pace Inc. as the Court and our family had been led to believe.

The letters submitted to the Court on Rooney Pace stationary in April indicated that Rooney Pace was to be the investor.

ALL THE REPRESENTATIONS MADE TO THE SHAREHOLDERS AT THE SHAREHOLDERS' MEETING IN EARLY MAY WERE ABOUT ROONEY PACE, NOT ROGER FAHERTY! Had the conspirators stated that an individual named Roger Faherty was to be the Sixty Per Cent Controlling Shareholder after the confirmation of the Plan, all of my family would have insisted upon background information about Roger Faherty.

Furthermore, to add to this fraud, Faherty was never to be the sixty per cent Controlling Share- holder! Faherty was only putting up $100,000 of the supposed initial $600,000 investment! The rest of the money was to come from an addition dozen or more investors that were never disclosed to the Court or Creditors! In a deposition about three and one half years later, Dietrich gave me a photocopy of a $600,000 check one day into his deposition.

Dietrich was very evasive during his deposition. Since I represented myself, pro se, Dietrich's attorney, Stu Hastings, was constantly badgering me.

Hastings would object several times throughout the deposition telling Dietrich not to answer specific questions.

I detected a pattern after our first day encounter and realized that his objection was a way to become argumentative and waste time so that I would ultimately ask fewer questions.

It also appeared to be a "signal" to Dietrich that he should evade the answer or go off on a different direction in order to throw me off the track.

At the beginning of the second day, Hastings presented me with a photocopy of a $600,000.oo check dated the day of the hearing. It was drawn on a New York Bank in the name of Fast Pace.

When I asked Dietrich about this check, he had no recollection of it.

Imagine to my surprise, Dietrich, a partner in Roetzel & Andress, not being able to recall anything about a $600,000 check of which he had a copy in his file! This sounded a little too fishy even for me to accept. I was determined to find out all I could about this "check." After Dietrich's Deposition, I knew a great deal more that I had understood about the Pro Arts demise.

I ordered the transcript of the Confirmation Hearing and to my surprise discovered that Dietrich had presented a copy of a "$600,000" check to Judge White in the first part of the Hearing.

I ordered Debtor's Exhibit #1 which Dietrich had placed into evidence and again I was surprised! Attached to the same photo-copy of the $600,000 check Dietrich could not recall was a letter from a New York law firm stating that the funds represented by that check were on deposit in their New York Escrow Account and were to be paid to Pro Arts upon Confirmation of the Plan.

Dietrich failed to supply the letter portion of that document when he gave me the photocopy of the $600,000 check. Later I was to find out that nearly 10 other vital documents were suppressed by Dietrich and Roetzel & Andress that were essential to proving my RICO case.

I later discovered a deposition of Roger Faherty in which he swears under oath that the $600,000 check shown to Judge White was never any good and that it was never cashed! When I copied the deposition and submitted it to Judge White with a copy of the check and letter, White read the deposition of Faherty and wrote a letter to the Fraud Squad of the Federal Attorney's Cleveland Office informing them of my find.

White had the opportunity to bring Dietrich into his court and have him explain under oath what I had discovered, but decided to shove this under the carpet and let the U.S. Attorney's Office scuttle the investigation.

Throughout the entire seven years following the liquidation of Pro Arts, I have discovered numerous frauds regarding testimony, D.I.P. Reports, Court Records, Bogus Checks, Mail Frauds and Wire Frauds which were never addressed by the Court or the Justice Department.

Dietrich and his fellow conspirators cheated the creditors, my family and me out of hundreds of thousands of dollars and ultimately lied in the subsequent lawsuits to avoid the litigation that followed.

When the F.B.I. agent, James Bentley, was assigned to my fraud case by the Justice Department, I felt that I was finally given a big break in cracking the Pro Arts Frauds! Bentley was later to be transferred out of the area after I had given my evidence to the Assistant U.S. Attorney Polster

This was a "cover-up" by the Justice Department because it involved too many prominent Ohio Attorneys and their large law firms. Polster refused to tell me why he did not want to indict the conspirators and the criminal aspects of these major bankruptcy frauds would never be addressed.