V Bulgarian National Tv_claim With All Comments

UNITED STATES DISTRICT COURT DISTRICT OF COLUMBIA Civil Action No.

MICHAEL KAPOUSTIN

Plaintiff, v. BULGARIAN NATIONAL TELEVISION INC. KEVORK KIVORKIAN MARTIN KARBOVSKY

Defendants

STATEMENT OF CLAIM

Jurisdiction And Venue

1.

1

This Court has original jurisdiction in personam according to 28 USC Section 13311 and is pursuant to 28 USC Section 1332(a) 2, in that the Plaintiff is an alien admitted to the United States as a permanent resident and whose permanent domicile is the United States .

Sec. 1331. Federal question - STATUTE The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States. 2 Sec. 1332. Diversity of citizenship; amount in controversy; costs - STATUTE (a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between (1) citizens of different States; (2) citizens of a State and citizens or subjects of a foreign state; (3) citizens of different States and in which citizens or subjects of a foreign state are additional parties; and (4) a foreign state, defined in section 1603 (a) of this title, as plaintiff and citizens of a State or of different States. For the purposes of this section, section 1335, and section 1441, an alien admitted to the United States for permanent residence shall be deemed a citizen of the State in which such alien is domiciled; (b) Except when express provision therefor is otherwise made in a statute of the United States, where the plaintiff who files the case originally in the Federal courts is finally adjudged to be entitled to recover less than the sum or value of $75,000, computed without regard to any setoff or counterclaim to which the defendant may be adjudged to be entitled, and exclusive of interest and costs, the district court may deny costs to the plaintiff and, in addition, may impose costs on the plaintiff. (c) For the purposes of this section and section 1441 of this title – 19305855.doc Page 1 of 30

2.

Venue is proper in this district pursuant to the provisions of 28 USC Section 13913 (d) and pursuant to 28 USC Section 1391(a)(3).

3.

The first Defendant Bulgarian National television Inc. (hereinafter “BNTV”) is a Bulgarian licensed and registered national radio and broadcasting commercial corporation whose shares are wholly owned by the sovereign state of the Republic of Bulgaria having a principle place of business and incorporation the City of Sofia, the Republic of Bulgaria. The Defendant broadcasts its’ programming into the Unites States of America via satellite and the internet.

4.

The second Defendant Kevork Kevorkian (hereinafter “Kevorkian”) is employed by the first Defendant as a producer, moderator and host of the first Defendant’s weekly live hour long news program Every Sunday. Defendant Kevorkian is a resident of Bulgaria.

(1) a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business, except that in any direct action against the insurer of a policy or contract of liability insurance, whether incorporated or unincorporated, to which action the insured is not joined as a party-defendant, such insurer shall be deemed a citizen of the State of which the insured is a citizen, as well as of any State by which the insurer has been incorporated and of the State where it has its principal place of business; and; 3 Sec. 1391. Venue generally -STATUTE(a) A civil action wherein jurisdiction is founded only on diversity of citizenship may, except as otherwise provided by law, be brought only in (1) a judicial district where any defendant resides, if all defendants reside in the same State, (2) a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated, or (3) a judicial district in which any defendant is subject to personal jurisdiction at the time the action is commenced, if there is no district in which the action may otherwise be brought. (b) A civil action wherein jurisdiction is not founded solely on diversity of citizenship may, except as otherwise provided by law, be brought only in; (1) a judicial district where any defendant resides, if all defendants reside in the same State] (2) a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated, or (3) a judicial district in which any defendant may be found, if there is no district in which the action may otherwise be brought. (c) For purposes of venue under this chapter, a defendant that is a corporation shall be deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced. In a State which has more than one judicial district and in which a defendant that is a corporation is subject to personal jurisdiction at the time an action is commenced, such corporation shall be deemed to reside in any district in that State within which its contacts would be sufficient to subject it to personal jurisdiction if that district were a separate State, and, if there is no such district, the corporation shall be deemed to reside in the district within which it has the most significant contacts. (d) An alien may be sued in any district. (e) A civil action in which a defendant is an officer or employee of the United States or any agency thereof acting in his official capacity or under color of legal authority, or an agency of the United States, or the United States, may, except as otherwise provided by law, be brought in any judicial district in which (1) a defendant in the action resides, (2) a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated, or (3) the plaintiff resides if no real property is involved in the action. Additional persons may be joined as parties to any such action in accordance with the Federal Rules of Civil Procedure and with such other venue requirements as would be applicable if the United States or one of its officers, employees, or agencies were not a party. The summons and complaint in such an action shall be served as provided by the Federal Rules of Civil Procedure except that the delivery of the summons and complaint to the officer or agency as required by the rules may be made by certified mail beyond the territorial limits of the district in which the action is brought. 19305855.doc

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5.

The third Defendant Martin Karbovski (hereinafter “Karbovski”) is employed by the first Defendant as a producer and co-host of the first Defendant’s weekly live hour long news program Every Sunday. The Defendant Karbovski is a resident of Bulgaria.

6.

The Plaintiff Michael Kapoustin, as a permanent resident alien of the United States has suffered material and temporal loss4 in the United States and elsewhere, this a direct result of the Defendant’s broadcasting of an anti-Semitic public statement attacking the character and integrity of Plaintiff and all the Jewish people and the Defendant broadcasting what are untrue and slanderously false statements imputing to the Plaintiff guilt for the commission of a crime against citizens of the Republic of Bulgaria, something the Defendant knew the Plaintiff had been fully acquitted for by a Bulgarian criminal court of law. Facts

7.

On December 16th 2003, a newspaper article appeared in the Edmonton Sun and other newspapers throughout Canadian and was reproduced in Romania, Greece, France and Belgium, England and the United States as well as other parts of Western Europe. It also appeared on the internet. The subject matter and title of the article concerned the Plaintiff and other foreign citizens incarcerated in Bulgaria’s notorious Sofia Federal Penitentiary “Selling..[his] Organs to Raise Cash” and posited to the reader the question “is Innocence Enough?” References in this article are made to the Plaintiff, a citizen of Canada, and other non-Bulgarian nationals also inmates at the Sofia Federal Penitentiary and complaining of having “Exhausted [of] legal avenues, and more importantly money, [Kapoustin is] now proposing [he] and several other inmates -- from Poland, Romania, Nigeria and America -- put their organs up for auction. Offered to the wealthy and the sick, [Kapoustin -raised in Toronto] -- says the money would help speed up the process for him and the other foreigners. He hopes even the lunacy of the suggestion will make someone listen”.

8.

On or about the 17th of December of 2003, and as a result of the December 16 th 2003 newspaper article appearing in a Canadian newspaper, the Edmonton Sun, the Defendant decided to approach the Warden for the City of Sofia Bulgaria Federal Penitentiary and request he obtain the Plaintiff’s agreement to a live television interview at the prison on the Defendant’s weekly television news magazine program entitled “Every Sunday”. The topic of the interview was to be reasons why the Plaintiff and some 30 other non-Bulgarian offenders had become so desperate and frustrated as to publicly solicit potential buyers for their transplantable organs.

9.

The interest of the Defendant in broadcasting a television report on the Plaintiff originally stems not from the Edmonton Sun article of December 16th 2003 but from events in Bulgaria that date back to mid-1994 and when Bulgarian prosecutors and police authorities first used the words “pharaoh” and “pyramid”, these words are associated in Bulgarian society with immoral and criminal behavior and are used only with the intend of publicly imputing to an individual or company the commission of a criminal offense.

10. The word “pharaoh”, when applied by the Defendant or any other member of the Bulgarian media to the Plaintiff or any other businessman is understood to be a derogatory term 4

Special damages for the purposed of the law of defamation have been defined as any material or temporal loss which is either a pecuniary loss or is capable of being estimated in money. Special damages not confined to business loss or loss of employment income. Rather, such as the loss of hospitality from friends providing such loss is capable of being estimated in money are also recoverable. 19305855.doc Page 3 of 30

intended to mean an individual who is without any sense or morality and is a hateful and detestable human being praying on the greed of the innocent. 11. The word “pyramid”, when applied by the Defendant or any other member of the Bulgarian media to the Plaintiff’s company or any other company is intended to be understood to be a derogatory term intended to impute deceptive practices and criminal activity on the part of a company and its management and as having no real commercial activity other than affecting a massive fraud on the Bulgarian people. 12. In early to mid-1995, the label “pyramid” was officially endorsed by the Parliament for the Republic of Bulgaria and the Prosecutors General as a legal description to be publicly relied on by members of the Bulgarian Parliament, its Council of Ministers and the Office of the President when making reference to the Plaintiff’s company or any Bulgarian or foreign company identified by the Prosecutors General for Bulgaria as dealing in the sale or trading of private investment contracts or securities in Bulgaria and whose revenues and profits relying on speculation in unofficial Bulgarian currency and commodities markets as a means to securing profits. 13. It was on or about October 1995 that the Defendant did in earnest first publicly broadcast and apply the defamatory label of “pharaoh” to the Plaintiff and the defamatory label of “pyramid” to his beleaguered Bulgarian corporation, “LifeChoice International Inc”.. The newsworthy nature of the Defendant’s interest to report on the Plaintiff and his company arose from the Plaintiff’s then legal and public status as the only U.S. based and nonresident foreign investor in Bulgaria to be accused by Bulgarian prosecution authorities of organizing and operating in Europe and Canada an international pseudo-religious cult based on the Jewish secret mystical practice known as the Kabala. Bulgarian prosecutors and police authorities first claimed that the Plaintiff financed this cult and its activities by the defrauding of thousands of Bulgarian, Greek, Georgian and Canadian citizens through the Plaintiff’s “pyramid structures” and then laundered the proceeds of his crimes into the accounts of Canadian banks through the Caribbean. The damages from any libels or slanders damaging Plaintiff as nationally and internationally broadcast by the first Defendant BNTV between October 1995 and August 2002 could not manifest themselves until after the Plaintiff had first been cleared of any such wrong doing. And then the defamations could only become actionable against the first Defendant BNTV or others if the defamatory words of “pharaoh” and “pyramid” were applied to Plaintiff after his acquittal on the charges and allegations of his having defrauded thousands of Bulgarian citizens. 14. On December 21st 2003, the planned date of the Defendants’ planed live broadcast, all the Defendants knew that the Plaintiff and his Bulgarian company had on August 16 th 2002, been cleared on all criminal counts alleging the defrauding of some 4,700 Bulgarian citizens. And as a result the defamatory labels of “pharaoh” could no longer be legitimately applied by the Defendants when describing the Plaintiff and the label of “pyramid” could not legitimately be applied by the Defendants to the Plaintiff’s beleaguered Bulgarian corporation. And this notwithstanding that the Plaintiff was convicted for another offense unrelated to the so called Bulgarian “Pyramids” and was sentenced to 17 years of imprisonment. The crime was the Plaintiff’s affecting six (6) separate and otherwise lawful international bank transfers from the bank accounts of the Plaintiff’s private company to the account of a company domiciled in the United States. The transferred funds, according to 19305855.doc

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the criminal trial Court, had been lawfully acquired by the Plaintiff’s company and were not the proceeds of a crime. According to the same trial court, the incriminating aspects of these transfers could be found in the Bulgaria prosecutions’ assertions that the transferred funds was never repatriated from the United Stated to bank accounts of the Company in Bulgaria. The Plaintiff to this day publicly maintains his innocence and insists that his actions did not constitute a crime under Bulgarian law or under the internationally accepted norms for what constitutes an unlawful misappropriation of funds wholly owned and lawfully acquired by a private and closely held and managed corporation. The Plaintiff publicly insists that his arrest, prosecution and conviction and 7 year and 7 month investigation and trial were politically motivated. It more convenient for Bulgarian authorities to publicly place responsibility on a non-Bulgarian western “Jew” and “profiteer” for the collapse of the Bulgarian economy and currency between 1995 and 1997 and not the Bulgarian government officials and other Bulgarian similarly charged. 15. On December 18th 2003, the Plaintiff advised the prison Warden the he agreed to the interview solely on the prison Warden’s assurances to the Plaintiff that the Defendants had promised that its interview of the Plaintiff would be limited to a discussion of the objective and subjective reasons leading to the desperate act of the Plaintiff and the other foreign offenders who issued a public declaration of their willingness to sell organs and so secure their transfers from Bulgaria to prisons in their own countries. The Plaintiff, his family and the other non-Bulgarian offenders were each lead to believe by the prison Warden that the Defendants interview of the Plaintiff would provide a platform for their grievances and to speak out against the Bulgarian government’s policies of direct and indirect discrimination as practiced only against non-Bulgarian offenders and also the inhumane and terrible conditions of their imprisonment. 16. On Sunday December 21st 2003, at approximately 5 pm, television engineers and producers employed by the Defendant arrived at the Sofia Bulgaria Federal Penitentiary to setup their cameras and other equipment in a room designated for the interview of the Plaintiff. On the same day, at around 5:30 pm, the Plaintiff was informed by a prison guard that he had 5 minutes to prepare before being escorted from his cell to the room where the interview was to be conducted. 17. Sunday, December 21st 2003 was the 26th day of the month of Kislev of the Jewish calendar and 2nd Day of the Jewish festival of Hanukkah. As a result, the Plaintiff would wear to the interview the Jewish Kippa or Yarmulke. This done in observance of the Plaintiff’s Jewish ethnic origin, his faith, religious conviction and the festival of Hanukkah. 18. Shortly before 6:30 p.m. the Plaintiff was joined by the third Defendant Martin Karbovski, who would be conducting the interview of the Plaintiff. The two were later joined via a live electronic link by the second Defendant Kevork Kevorkian, the principle interviewer and moderator for the Defendant’s news program “Every Sunday”. 19. The Defendant’s program Every Sunday and its interview of the Plaintiff would air live from the Sofia Bulgaria Federal Penitentiary at exactly 6:30 pm Bulgarian time or approximately 8:30 am east coast standard time in the United States. The program would be recorded and be repeated everyday at different times during the following week.

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20. The December 21st 2003 the program begins with a broadcasting in writing of the following words in the programs opening title, that “Kapoustin…[the Plaintiff] selling off the organs of the Pharaoh”. The words are defamatory and nothing more than a deliberate and malicious attempt by the first Defendant to immediately assassinate what little credibility, honor and dignity is left to the Plaintiff after the nearly 8 years of false criminal accusations of his being a fraud or “pharaoh” and before finally being acquitted by a court of law. From the initial moment of its broadcast the first Defendant wanted it to be understood by the ordinary citizens viewing its’ program that the Plaintiff deserved the derogatory label of “pharaoh” for having defrauded thousands of the Defendants Bulgarian viewers. Ordinary men and women could infer no other meaning from these first words appearing as the title of first Defendant’s broadcast except their natural and ordinary meaning to a member of Bulgarian society inter alia, that the Plaintiff was a fraud and a detestable criminal deserving of their enmity and to be reviled. Ordinary viewers did not and could not be expected to know that the Plaintiff had been acquitted of all such criminal charges and allegations by a Bulgarian criminal court and so did not in all fairness fairly deserve the derogatory and defamatory label of a “Pharaoh” whose “organs” are being sold off. 21. During the television interview of the Plaintiff, the first Defendant’s senior moderator, and second Defendant, was to be one Kevork Kevorkian who did a few seconds after the appearance of defamatory title and speaking in the background of a live image of the Plaintiff uttered the following slanderous words and made the following untrue statement as if fact when he described the Plaintiff as the “…the chief of the collapsed pyramid LifeChoice”. These words are intentionally untruthfully and spoken maliciously with the intent of creating the false impression that the Plaintiff’s Bulgarian “LifeChoice” has ceased to exist, something the Defendants knew to not be true. It was also intended to impute to the Defendants viewers that the same company had been to be a criminal organization responsible for defrauding Bulgarian citizens, one of the so called “pyramid structure”, something the Defendants also knew not to be true. 22. Again ordinary men and women viewing the program of the Defendants and hearing the slanderous words spoken by second Defendant Kevorkian could infer no other meaning from these words except their natural and ordinary meaning in Bulgarian society as imputing to the Plaintiff leadership of a failed criminal activity or “pyramid” that has “collapsed”. Ordinary viewers did not know and could not know that despite the 10 years of the Plaintiff’s imprisonment his company still remained in good standing as a registered commercial enterprise with the Sofia City corporate registry, had assets that exceed its liabilities and had been determined by a criminal court of law to be a legitimate commercial enterprise and not a “pyramid”, and paradoxically the sole victim of the crime for which the Plaintiff had finally been convicted. 23. This reliance by the Defendants on the words “pharaoh” and “pyramid” when describing the Plaintiff and the Plaintiff’s company clearly had no purpose or relevance to the public protest of the Plaintiff and other foreign citizens as reported by the Edmonton Sun on December 16th, 2003. It became apparent from the outset that the Defendants intent was only to expose the Plaintiff to further public ridicule and to inflame an already unreasonable and unfounded public hatred and contempt for the Plaintiff as had been previously incited by Bulgarian authorities when wrongly accusing the Plaintiff for the commission of a massive fraud. 19305855.doc

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24. It became immediately apparent that as employees of a Bulgarian state controlled enterprise the second Defendant Kevorkian and third Defendant Karbovski had set the tone and direction of the interview to discredit the Plaintiff and thereby also discredit his complaints and those of other of other foreign citizens in Bulgarian prisons that they are victims of corrupt practices and discrimination practiced by the Bulgarian state, the sole shareholder of the first Defendant BNTV. 25. The Defendants intend when using the slanderous words “pharaoh” and “pyramid” to describe the Plaintiff and his company was only to divert the public attention from the reasons for the desperate acts undertaken by him and the other foreign citizens and their legitimate attempt to draw attention to the suffering and inhumanity of the Bulgarian state. The quoted words are slander because the words were accusations imputing the commission of a criminal offense for which he had been fully acquitted for by a Bulgarian criminal court of law and is therefore a crime that the Defendants knew the Plaintiff did not commit. 26. The slanderous defamations inflicted by the Defendants on the Plaintiff did not end with their untrue and contemptibly malicious attempt at discrediting the Plaintiff and the other foreign citizens imprisoned with as anything but reasonable human beings with families and a conscience but proceeded far beyond what is acceptable in a civilized and democratic European society. The Defendants interview of the Plaintiff and its program “Every Sunday” deteriorated into a pathetic but no less damaging parody of the racial hatred and fascism that characterized the official policies and politics of the Bulgarian State before 1945. 27. The Plaintiff and the third Defendant Martin Karbovski communicated through interpreters and first exchanged the following words; Karbovski turning to the Plaintiff “interesting hat you have” [A reference to the Plaintiff’s Jewish scull cap Kippa] The Plaintiff answers “Ah, thank you” Karbovski “What kind of hat is that?” Kapoustin “It’s a Jewish Yarmulke, I’m Jewish” Karbovski “You’re Jewish are you?” Kapoustin Yes I am Karbovski “I was wondering how you managed to cheat5 so many people” 28. The phrase “What kind of hat is that?” although cloaked as a question by the third Defendant Karbovski is clearly only rhetorical in nature. The third Defendant Karbovski knows what the Plaintiff’s “hat” represents and admits as much when several minutes later explains that he had “performed the part of a Jew”. Clearly, the third Defendant’s Karbovski’s only reason for his question was a malicious one and solely intended instead to 5

The Bulgarian “Измама” means deceive, take in; (с користна цел) cheat, defraud, swindle, take in, dupe, fool; hoodwink; (надхитрям) outwit; 19305855.doc Page 7 of 30

draw the attention of millions of the Defendants viewers to the Plaintiff’s “hat” and the visual significance of that “hat” in establishing that the “pharaoh”, the Plaintiff, is a Jew. There is no defense for the rhetorical nature of the statement that follows this question. 29. It was by way of an explanation that the third Defendant Karbovski spoke the slanderous and racially motivated words “how you managed to cheat so many people”. Clearly the Defendants wanted their millions of viewers to know that its because “You’re [the Plaintiff] Jewish” that “you managed to cheat so many people”. These slanderous and hateful words are spoken with a smirk but intended to incite enmity not only against the Plaintiff but against all Jews. These words, when taken according to their natural meaning and taken up in their proper context convey not a fair comment but instead communicates to millions of television viewers anti-Semitism and incites race hate. The Defendants imputation with the slanderous is that Jews are better than at cheating, defrauding hoodwinking, and swindling and the Plaintiff being a Jew finally clears up the Defendants confusion or “wonder” of how is was that the Plaintiff “managed to cheat so many people”. 30. By these slanderous words the Defendants meant and were understood by millions of television viewers to mean, that not only is the Plaintiff without any sense or morality and a hateful and detestable human being his being Jewish explains he is without any sense or morality and this is true because Jews according to the Defendants make the best cheats and swindlers. 31. At 23 minutes and 11 seconds into the interview the third Defendant Karbovski further inflames viewer contempt against the Plaintiff and all Jews when further aggravating the injury already done by asking the Plaintiff the purely rhetoric question of “Come on aren’t Bulgarians something like financial idiots?”. These slanderous words, while appearing to insult the Bulgarian people, are in fact nothing more than a poorly veiled and distorted attempt at massaging the Defendants earlier anti-Semitic and race related statement and so justify a lesser defamatory meaning to the Defendants earlier defamatory imputation concerning all Jews, and because the Plaintiff is a Jew, as the explanation for how he, the Plaintiff, “managed to cheat so many people”. And according to the Defendants, as a Jew the Plaintiff must surely think that all “Bulgarians are financial idiots”. 32. From the context of the interview it becomes apparent that the Defendants sole intention with the interview of the Plaintiff had nothing to do with the legitimate reasons for his actions as reported in the international media on December 16th 2003 and that of the other foreign citizens incarcerated at the Sofia Federal Penitentiary but was in fact nothing more than the most egregious and deliberate of character assassinations calculated to damage and discredit the Plaintiff and all foreign citizens detained in Bulgaria and intended to cause the Plaintiff and his family further anguish and emotional trauma and by making them the further subject of ridicule by ordinary members of society who will form their opinions from the distorted, race related and xenophobic opinions of the Defendant. The ordinary television viewer unable to make the fine distinctions between the crimes alleged by the Defendants and attributed to the Plaintiff and the actual acts themselves and findings of fact and law as determined by the courts. 33. The statements and the interview conducted by the Defendant contained not a single idea or opinion or a scarp of information of any value whatsoever and is malicious in the extreme falsely suggesting that the Plaintiff has committed a crime against a whole society and not against a single private commercial enterprise having one shareholder. 19305855.doc

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34. The Defendants calculated their interview so as to engender the maximum amount of hatred and contempt towards the Plaintiff and in fact all Jews and to invite the Defendants viewers to join in the Defendants poorly veiled contempt towards Jews and the characterization of Jews as a people without sense or morality and hateful and detestable human beings by praying those who are “financial idiots”. 35. These words of the Defendants together with “pharaoh” and “pyramid” are devoid of any truth and did not communicate to the Defendants millions of television a scintilla of information or ideas of any value whatsoever except the not so subtle attempt to expose the Plaintiff and all Jews to racial hatred, contempt and further public ridicule. The Defendants intended to and did injured not only the reputation and integrity of Plaintiff but of all the Jewish people, the slanderous and racially motivated words had only the intention to do harm and nothing in the words of the Defendants could suggest otherwise. 36. It is later in the interview that the third Defendant Karbovski goes on to suggest that the Plaintiff’s and other prisoners attempt at selling their organs is a reasonable act and “at least…a solution for your problem”. The third Defendant Karbovski then goes on to again slander the Plaintiff again when again imputes a crime to the Plaintiff for which the Defendants know the Plaintiff is acquitted and proceeds to directly blame the Plaintiff for those “…people who received problems because of the collapse of your pyramid” and that they “don’t even have that solution” of selling their organs. 37. The third Defendant Karbovski goes on to say to the Plaintiff that “It seems you want to get out faster because you have hidden it [the stolen money] somewhere and you now want to use it.” And that if he, the third Defendant Karbovski, had stolen and hidden “2 or 3 million dollars somewhere”, something he insists to his viewers the Plaintiff has done, he “would go ahead and sell a kidney” and “then to go to the place where I hid the money, it comes out that way sometimes”. 38. When the Defendants are asked by the Plaintiff if they consider the Plaintiff’s transfer to a prison in Canada or his possible parole after more than 8 years in a Bulgarian prison as “faster”, the third Defendant Karbovski replies with the words “You’ve got 11 and a half left!” From these words and the immediately preceding exchange of words and the Defendants unsupportable assertions of the Plaintiff having caused “people…problems because of the collapse of your pyramid” and that the Plaintiff had “hidden” money in the millions of dollars and was only seeking a “faster” way out of prison are clearly slanderous words and defamatory assertions whose malicious intend is to aggravate the existing public enmity towards the Plaintiff by maintaining in a delusion in the public mind of the Plaintiff’s guilt and criminal responsibility for an act the Defendants known the Plaintiff was acquitted for. The sole purpose of the interview was to foreclose any possibility of the Plaintiff securing his transfer to a prison in Canada near his wife and small son and also ruin any chance of the Plaintiff’s later parole or attempts at a rehabilitation of his public reputation or pursuit of a livelihood. 39. The interview of the Plaintiff is a deliberately false and vicious verbal attack on a person with no public persona and a wholly unjustified attack upon the character and reputation of the Jewish people and was not done in the public interest, but is the alternative, an act to harm the public interest by continuing a falsehood intended to deliberately manipulate people of good faith to perceive the Plaintiff as the perpetrator of a massive fraud and intentionally precipitated the perpetuation of a slanderous anti-Semitic anecdote that Jews 19305855.doc

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are better swindlers than Gentiles. Neither of these acts of the Defendants works towards the creating of a community committed to equality, liberty and human dignity and therefore the interview cannot have be said to have been in the public’s interest. 40. And while these assaults by the Defendants on the Plaintiff did not involve acts pf physical violence, the motivation behind the assault is still the same and it did involve a violent assault in front of millions of television viewers and could result in nothing else but injury to the Plaintiff, his family and the Jewish people. An injury that will have far more lasting and serious affects that that of the physical injury of being beaten and bruised. The motivation for this assault on the Plaintiff and Jews is the same whether the violence is to the flesh and bone or to the integrity of one individual’s reputation or the reputation of a whole nation of peoples. The Defendants intended their television interview as a tool intended only to inflict an injury that would cause the greatest and most severe pain. Their maliciously slanderous statements and distortions of the facts contained no truth, no honest belief except for Defendants thinly veiled racial slurs against the Jewish people, and conveyed no valid opinion except the Defendants expression of contempt of the most malicious kind and calculated to destroy the humanity of the Plaintiff, the other inmates and the credibility of their complaints against inhumane conditions and treatment at the Sofia Federal Penitentiary and to represent before millions of viewers the anecdote that the Jewish people are better “swindlers”. 41. The work of numerous study groups shows that racism, anti-Semitism and recently xenophobia are current and present evils in not only in the formerly totalitarian state of Bulgaria but is a rising phenomena in the United States and Europe. These remains cancerous growths that are still very much alive and make vulnerable the Plaintiff and others like him who belong to such a minority and made him susceptible to injure from the deliberate and injurious lies as those perpetrated during the Defendants interview of the Plaintiff and from the Defendants intentional reliance on injurious false statements disguised as fact or authentic research and malicious racist anecdotes used to spur on nationalist, racial and religious hatred and intolerance towards the Plaintiff, Jews and all things “foreign”. 42. The first Defendant BNTV made no retraction or sufficient public apology and did not exert any effort to mitigate the damages resulting from the racist remarks and public insults made against the Plaintiff and the Jewish people by the third Defendant Karbovski. Instead, the first Defendant BNTV acted to aggravate the damages already caused by the one live interview of December 21st 2003 and repeatedly re-broadcast a recording of this interview and the defamations by satellite and cable for the next 7 (seven) days. And did so without any consideration for the injury it would cause to the Plaintiff and his family who hoped in time to regain the good will of reasonable and fair people or to the dignity of the Jewish people whose suffering an loss of human life at the hands of the Bulgarian state is historic fact. WHEREFORE AS THE PLAINTIFF HAS SUFFERED SERIOUS INJURY AS A RESULT OF THE DEFENDANTS WRONGFUL ACTS FOR WHICH THE PLAINTIFF DEMANDS FULL COMPENSATION FOR THAT SUFFERING AND LOSS SUSTAINED BOTH AS PECUNIARY AND NON-PECUNIARY LOSS FOR AN ATTACK ON HIS REPUTATION AND DIGNITY AND THE REPUTATION AND DIGNITY OF THE JEWISH PEOPLE AND SEEKS A JOINT AND SEVERAL JUDGMENT AGAINST THE 19305855.doc

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DEFENDANTS FOR TE SUM OF TEN MILLION DOLLARS plus pre-judgment interest, post-judgment interest, costs, attorneys' fees and such other relief as this Court deems just and proper. Plaintiff Consents to United States Magistrate Judge under Title 28, U.S.C. Section 636 (c). Place of trial: District of Columbia Dated at the City of Washington in the District of Columbia on ……….. January 2006.

Robert Kap On behalf of and as Agent for the Plaintiff Michael Kapoustin Address for service: Chicago, Illinois

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EVERY SUNDAY Shows Title “Another Life” “A Direct Broadcast from the Sofia Prison” Kapoustin selling off organs of the Pharaoh Various Bulgarian newspaper clippings The Interview December 21st 2003 at 6:30 Kevorkian; “the Edmond Sun advises that from his cell at the Sofia Central Prison Michael Kapoustin intends to sell his organs at auction for transplantation” “Sentenced to 17 years of prison the chief of the collapsed pyramid LifeChoice, Michael Kapoustin is already behind bars 7 years. He fills his time with writing and drawing.” “The money he hopes to receive from the auction will put the into a one way ticket for Canada says Kapoustin” Kevorkian “Kapoustin, another life” Michael “Good evening Mr. Kevorkian, good evening Martin” Kevorkian “Is Martin they already” Karbovski “Yes I’m here” and then turning to Kapoustin 19305855.doc

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“interesting hat you have” Kapoustin Surprised he answers “Ah, thank you” Karbovski “What kind of hat is that?” Kapoustin “It’s a Jewish Yarmulke, I’m Jewish” Karbovski “You’re Jewish are you?” Kapoustin Yes I am Karbovski “I was wondering how you managed to cheat6 so many people” “What are you going to sell first?” Kapoustin First of all my first response to you is that what you said sounds anti-Semitic Karbovski Well I was just kidding, it was just anecdote7 Kapoustin Was it also a joke that I…. [Cut off] Karbovski I just didn’t know you are Jewish, I don’t have anything against you 6

The Bulgarian “Измама” means deceive, take in; (с користна цел) cheat, defraud, swindle, take in, dupe, fool; hoodwink; (надхитрям) outwit; 7 The Bulgarian “вица” anecdote, funny story; ~ a stale joke about Jews 19305855.doc Page 13 of 30

Kapoustin Fine, fine…[cut off] Karbovski [here the words are not understandable, but sound something like] “it’s a mere pretext I performed the part of a Jew, playing Maxim” Kapoustin “Fine fine… The objective is for the doctors to decide but obviously I am sure you and Mr. Kevorkian are educated enough to know that only certain body parts can be transplanted from a live organ donor without causing harm to the donor but with significant benefits to the transplant beneficiary” Kevorkian Why are you doing this? Is this some sort of jest desperation or some sort of theatre? Excuse me for…. Kapoustin Yes it is from desperation Kevorkian No theatre? Kapoustin There is an enormous sense of frustration felt by me and by many other foreign prisoners, which we have difficulty expressing because Bulgarian is not our language many of us do not have financial resources, I don’t know, to hire international lawyers to pursue certain avenues that are necessary to secure our rights as foreigner citizens deprived of liberty in Bulgaria. The laws guarantee us certain rights but as anything one can say that justice reaches only as far as your pocket book. And for those who are in prison and who have no money or other financial resources to pursue their rights it is then often time necessary to pursue a desperate act, but one within the law and something which you have absolute disposition over which is your own body. I took the decision some months ago as well there are some others that possibly the answers to our problem, solving our problem, was to offer to become organ donors in exchange ask someone to pay the Bulgarian state the money that it seeks and in order to be able to secure not only legal assistance but as well to pay off the other money demanded by the Bulgarian state which we have no other way of paying. 19305855.doc

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Karbovski, looking at Kapoustin Theater? Kevorkian’s gave as an example Theatre. Is there theatre? Kapoustin Theater? No there is no theatre, I am completely serious. To understand you would have to spend 2 plus years isolated in a cell and then another 5 years in a Bulgarian prison separated from your family, never seeing your son, your wife, your parents. There is no opportunity possibility to visit with them or to be a part of their life. In my case they are thousands of kilometers away. To be frustrated by all the obstructions keeping you from obtaining the most elementary of necessities and having to have your Embassy to try and reach a reasonable solution. Then at some point and time you reach the end of your nerves, throw your hands into the air and you ask yourself “How am I going to solve this problem of this constantly demanded money from me which I and my family don’t have” and I am sure both you and Mr. Kevorkian both know that it is uncommon for individuals in poorer countries to sell their body parts. Kevorkian Yes, Michael, excuse me, but what exactly are you selling? Kapoustin Well again one has to reflect on when you say “exactly” the human body can only surrender certain of it parts, the kidney, parts of the lung, bone marrow is also possible there is also from what I understand there exists the possibly of partly transplanting of the liver but I am not medical expert or doctor and am not claiming to understand all the medical aspects but mostly commonly the subject of transplants is the kidney. Kevorkian What are expecting to receive against that? Kapoustin 19305855.doc

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Well from what the historical record we have been able to identify threw my family about transplant operations possibly it can cost the beneficiary of the organ 150-250,000 dollars but I am personally not interested in making any money from this, that would be idiotic, what I hope for is to use this mechanism to find someone who will be committed to provide the necessary money for the lawyers and other expenses necessary to securing my transfer to a Canadian prison. I believe that this is actually the desire of most of the foreign prisoners here and that is to spend what remains of their sentences in their own countries where they can be near their families just as Bulgarian convicts are near their families here and to make their time in prison more humane. Bulgarian has signed an international treaty for this and we are struggling to get Bulgarian officials to fulfill this commitment. Kevorkian When you discuss this subject with your lawyers does it become obvious that it is possible for Bulgarians serving sentences in Canadian prisons to be transferred to a Bulgarian prison? Kapoustin Yes, actually I am the only Canadian citizen in a Bulgarian prison and there are far more numerous Bulgarians in Canadian, American and Western European and their transfer is an option which is open to them and Bulgarians do not experience the same type of problems which I have experienced, The Canadian Embassy and Foreign Affairs Canada in Ottawa had made the request for my transfer and as early as 1999 and all of the indications where that as soon as the trial was finished and the sentence was in force then the transfer would be made possible and there are documents to that affect from the side of the Prosecutors General. However, when the moment actually came there appeared new problems or inventions surfaced only to delay the procedure. But in reply to your question, Bulgarian citizens in Canada do have the right to be transferred and serve their sentences in Bulgaria. Kevorkian Whether that’s true I am not at all so sure but never mind lets talk about something else. To this moment how is this auction that your doing gone so far? In there anyone interested in what you are offering? Kapoustin Mr. Kevorkian this is a slow process and it is not going to happen over night. Neither I nor anyone close to me is under any illusion that tomorrow afternoon everything will be in place. The process began several months ago and articles appeared only recently in the press in Canada and the United States. The offer also appeared in some Jewish newspapers. There are many older people who have the financial resources to help me and which I could repay by donating an organ. Kevorkian 19305855.doc

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Martin it’s your turn Karbovski I want to ask something very important. Maybe this will sound political Michael. We don’t know each other but you appear a sympathetic and persuasive8 man and now you are selling your organs. You say that “they have brought me to this” but I have met people who have complained that you have taken their money and for them, and they are not as intelligent or young so as to sell their organs, simply please don’t get angry at me for this question. Kapoustin No Martin I’m not angry with you for that question or I’m not angry with anyone who is angry with me. There is so much negative media coverage from 1995 forward … Karbovski I have seen these people… Kapoustin I have seen those articles and understand their suffering… Karbovski I am not talking about articles in the press but I have personally seen them and pensioners who are crying because LifeChoice took their pensions and last saved money… Kapoustin Martin you didn’t understand me. Let me clarify something from the outset. When I say that they really smeared9 my name in the media you have to remember that public opinion is most often the result of what journalists like yourself say on television and public opinions are formed by the direction that the media takes. Public opinions is created from impressions relying very much on journalistic honesty… Karbovski You are young, intelligent and convincing and you spare your organs…do you smoke?

The Bulgarian “убедителен” meaning to be convincing, persuasive; (psychologically) credible; (за довод и) cogent, weighty, strong, conclusive; telling; привеждам убедителни причини за show just cause for; (за образ) convincing, true to life, lifelike; ~ съм (за довод, тон) carry conviction 9 The Bulgarian word “очерниха” means to blacken (the character of), smear, sully, defame, vilify. 8

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Kapoustin No I don’t smoke Karbovski Are you training? Kapoustin Yes I do Karbovski Besides that you probably eat healthy food, is it like that? Kapoustin No I don’t unfortunately. The prison does not provide healthy food. Karbovski But, never mind that, you at least have a solution for your problem. But people who received problems because of the collapse of your pyramid don’t even have that solution. Kapoustin Martin, if I may reply without you interrupting me. In the first instance I think we are both in agreement and I think those same people would also admit that in free society and economy everyone has the right to make their own decisions. Anyone who undertook to invest in my company or other companies and lost money had invested of their own free will and had made an informed choice. Also there were far more significant and successful failures than my company but their directors are not in prison. No one was pressed or otherwise forced into investing. However I am being forced to do this and have no choice since this is my only possibility to finish my sentence in my own country. But these people had a choice and they took it. You said that the company was a pyramid let me correct you that a Bulgarian court found me not guilty and innocent of accusations for fraud it as a point of fact what you are saying is not true. You should restrict yourself to the truth and to the facts. Karbovski Since I am not like other journalists and something’s I don’t read and don’t know among other things if know you are innocent. 19305855.doc

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But a lot of people, and I’ll ask the question. If you took the money then where is the money now? Kapoustin That’s a common question. Karbovski It seems you want to get out faster because you have hidden it somewhere and you now want to use it. If I had 2 or 3 million dollars somewhere and I would go ahead and sell a kidney. Besides that I have stones in mine. To for example sell one kidney and then to go to the place where I hid the money, it comes out that way sometimes. Kapoustin Martin do you consider 8 years in prison quick? Is 8 years in prison quick to you Martin? Karbovski You’ve got 11 and a half left! Kapoustin Well Martin even according to Bulgaria law every prisoner has the right to be released after serving half his the term of his sentence. No don’t interrupt me. According to my sentence, and there is a sentence, the fact remains that law is law and legislated so it can be observed and so when someone one is criminally sentenced to be deprived of his liberty he is not also deprived of all his other rights and according to what you are proposing at this moment and the same attitude that’s coming from official representatives of the Bulgarian government are measure that begs the question of why would you want to take measures that only causes people to suffer and so coercing me and others to take drastic measures only to secure our rights. Instead why don’t you say this man has served his sentenced according to the requirements of Bulgarian law, he punishment is over. Mine is not a life sentence. Karbovski Where is the money? Kapoustin For 8 years the Bulgarian government and prosecutors can’t find any. And I did not hide any. Karbovski Are Bulgarians Stupid? Kapoustin 19305855.doc

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No not all, in no circumstances Karbovski at 23:11 Come on aren’t Bulgarians something like financial idiots? A people who are ready to invest in a complete financial absurdity with huge interests, people who have lost their financial culture. Kapoustin No, if I am going to say something on this subject it would be that the Bulgarian media and press is more likely to wrongly interpret financial instruments. Bulgarians according to me are not stupid. And maybe you should ask the same questions about what happened and get the version of their story from those men who aren’t in prison. Of all of the directors of these so called pyramids I’m the only one serving a sentence all the others are free. Why not ask them…. Kevorkian OK, what’s your version Michael? Kapoustin Version of what Mr. Kevorkian? Kevorkian Of why only you are in this place? Kapoustin That’s a good question. I have asked that same question many times. There were more than 200 plus separate criminal investigates when all these alleged “pyramid structures” got their start. Of those more than 200 cases from the ‘90s only mine received so much attention from the Ministry for Justice and so much attention from the prosecutor’s office and from the media. All the others who were accused during the same time had the charges against them either dropped or if indicted were very quickly released on bail and for a variety of reasons the cases against them are all still pending. In my case I spent 7 years in prison before the passing of any final sentence and that only happened because I with drew my appeal wanting instead a transfer a prison in my country near my wife, my small little son and elderly parents. At this point I was just tired and thought the fight would be better elsewhere, like Strasbourg and other courts where justice is really more important than fantasy. Kevorkian 19305855.doc

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OK, so you are counting that with this auction to get about 200,000… Kapoustin I rely on this auction Sir to provide me a means with which I gain some financial support that will result in satisfying whatever money it is that the Bulgarian state wants and to provide me with the necessary means to obtain legal counsel necessary to prosecuting claims in Canada, the Unites States and Strasbourg. And so that in the end I can return home. And when I say home Sir I don’t mean home to my house or to freedom but to another prison. Kevorkian Yes, OK. What is the total sum of civil cases against you? You are not sentenced for fraud. Kapoustin There are none. Kevorkian You sure of that? Kapoustin Oh I am absolutely positive Kevorkian So you are sentenced to 17 years not for fraud by for embezzlement? Kapoustin Correct, its exactly like that and supposedly from a company that I incorporated and control 100% of the issued shares. Kevorkian Of those who consider themselves defrauded, don’t have counter claims against you? Kapoustin

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No not at all. According to several decisions by Bulgarian Supreme Courts any contractual relationships that existed was with a corporation. Apparently you Mr. Kevorkian have forgotten that the Bulgarian Ministry for Finance in 1995 legalized each of these transactions by assessing Value Added Tax on full amount of any sum represented by these contracts. These transactions during 1995 became lawful on the same day that the Ministry of Finance assessed the company VAT for each one. After which, the Bulgarian government with the agreement of the court sold off all the assets of the company so as to pay the Bulgarian state and not the individual investors. So let me ask you Mr. Kevorkian why is there been so much noise over my case but none when it comes to the Tax Administration for Bulgaria taxing with VAT transactions that a few minutes ago Martin called fraudulent? If I am not wrong I think at the time this represented 22% VAT on each transaction. For me it is this paradoxical and in explicable. I have repeatedly insisted that I did not commit any form of fraud and the trail court accepted this and agreed that funds were received but my company lawfully. So then who is it who can determine how to dispose of the money that the company has? Well that would be the board of directors and they collectively decided how the funds were to be used and I signed the required documents to transfer funds from one company to another. And that is what I have been convicted for, the transferring of corporate many from a Bulgarian company to a US company, and this is it. Sometime ago you were interviewing a gentleman who had succeed to win his Strasbourg. You will recall that one of the first successful cases was brought by former Bulgarian prime minister Lukanov who was arrested in circumstances nearly exactly as mine. He had transferred money to a number of countries at the request of a Bulgarian parliamentary commission and it was decided later that he had misappropriated state funds and violated the law. Later Lukanov was assassinated. If you will recall, and I so bold as to remind you of your own history, former Prime Minister Lukanov was arrested with several other members of parliament, maybe you Marin are to young to remember, but I think it was 46 other deputies who together with Lukanov were arrested for misappropriation of state property… Kevorkian Michael, one last question… Kapoustin I am sorry to have taken so much time with that question… Kevorkian Ah… if you don’t find this question a little strange, do you feel any regret for the people who believed in the idea of getting rich quick Kapoustin

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Yes Mr. Kevorkian I do. If you’ll allow me a few more minutes to explain . I feel sorry for those Bulgarian citizens who suffered such losses because I am convinced they acted with good intentions. However, sometimes good intentions because of other factors end in failure. As a result I sincerely a sorry and the last thing I’d like to say is that regret is not only an empty gesture. One of the civil claims I am prosecuting in the United States is in the name of everyone affected by LifeChoice and if successful will recover the property and will be able to realize our original objectives. Kevorkian Finally at the end something of an idiotic thesis. One of those cheated, let call them that, please accept this so we I don’t have to look for some other word right now, comes up to you. Would you give one of your organs for transplantation? Kaposutin I really don’t accept that word but OK lets just say someone who lost his money, Kevorkian Very well, yes lost his money. Would you give him one of your organs for transplantation? Kapoustin I don’t think doing so would serve me in the long term, I have already given to that man and others 8 years of my life and I hardly intent to pay a higher price than what I have already paid for him Kevorkian OK I understand you Michael, thank you Karbovski He’s a very intelligent10 man

10

The Bulgarian “умен” meaning intelligent, clever, smart; (разумен) prudent, sensible; (проницателен) shrewd, разг. cute, brainy; природно ~ sharp; много ~ as sharp as a needle; quick-witted; ~ съм have o.'s wits about one. 19305855.doc

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To:

The Managing Director Bulgarian National Television First Channel

Ref:

December 21st 2003 National and International Broadcast “Every Sunday” At 6:30 Bulgarian Time Interview with Imprisoned Canadian Citizen Michael Kapoustin

Subject: Possible Civil Claim in the United States Slanderous/Libelous and Anti-Semitic Remarks Martin Karbovski and Kivork Kivorkian Saturday, January 10, 2004 Dear Sir or Madam: My family and I are formal attempting to reach a friendly agreement with Bulgarian National TV as a settlement for the anti-Semitic comments and other defamation that was broadcast between 18:30 and 19:00 hrs on Sunday December 21st 2003. We do so solely in order to avoid the costs and emotionally distress of publicly seeking a settlement by bringing a slander and libel claim against Bulgarian National TV before the Federal District Court of Washington, D.C. in the United States of America. We seek some form of agreement in compensation for the injury suffered to the character of the Jewish people and to the public rehabilitation of my public image and reputation. With your cooperation and help we hope to reverse the severe personal humiliation and public injury caused the Jewish character and me by Bulgarian National TV. In friendly settlement my family and I are seeking that Bulgarian National TV agree to a national and international broadcast, with me present, an interview where Martin Karbovski and Kivork Kivorkian publicly retract the untrue slanderous and libelous statements made by them and publicly apology as follows;

1. An apology first to the Jewish people for the defamatory and injurious words and phrases made at the opening of the 21.12.2003 live broadcast during the “Every Sunday” program where interviewer Martin Karbovski commented on my Kippa and then uttered the slanderous false words and made a malicious report that was injurious defamation in spoken words and by looks, signs, or gestures that it is because I am Jew that I was capable and responsible for “defrauding so many Bulgarians”. This is a inflammatory anti-Semitic remark and there must be a public apology broadcast; 2. We also demand, as compensation, that Bulgarian National TV do a program on the Macedonian Jews who each suffered and most died because of the actions of the Bulgarian army/state in collecting and transporting whole Jewish families to their death in German concentrations camps. We also ask Bulgarian TV make a contribution of some money to the main synagogue in Skopje; 19305855.doc

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3. An apology to my family and me and the retraction of the injuriously untrue defamatory publications appearing in the written titles preceding my interview by Bulgarian National TV in its broadcast of “Every Sunday”. These untrue slanders and libels appeared as written and spoken words during the same interview broadcast on 21.12.2003. Bulgarian National TV made malicious and intentional false accusations before millions of national and international viewers that I was a “swindler” of the Bulgarian people; had been convicted and imprisoned for “defrauding” the Bulgarian people, and; when Bulgarian National TV used the word “pyramid” it intended to convince its viewers that my company, LifeChoice International, is a criminal organization rather than the victim of a crime only the Bulgaria State and not the company alleges I committed. Bulgarian National TV knew its editorial comments not to be true, and that I had been acquitted of any fraud or injury to the Bulgarian people by a Bulgarian criminal court of law court. The court having established that the money I am alleged to have embezzled is the lawful property of my company and NOT the citizens of Bulgaria;

4. An apology to my family and me for the slanderous false words and malicious report that was injurious defamation made in spoken words and by looks, signs, and gestures that has unfairly and cruelly caused us to suffer further emotional distress and injury when Bulgarian National TV morbidly and callously satirizing for national and international reception by television the suffering that my family and I have endured, and making seem insignificant and insufficient my punishment and the conditions of my 8 year imprisonment and separation from my family. Bulgarian National TV implying that I am psychologically and emotionally unstable by reasons of the fact that I am forced, together with other foreign citizens in Bulgaria, to seek to become a live organ donor. Bulgarian National TV having made no effort to report the sole cause for this desperate act is in order to pay money demanded from me by Bulgaria’s Deputy Minister of Justice Mr. Mario Dimitrov. I, because I am a Canadian citizen, am being made to make a “payment” to the Bulgarian government and others if I expect to be repatriated to a Canadian prison. Bulgarian National TV having intentionally failed to report that this is a documented demand made by the Bulgarian Deputy Minister of Justice in exchange for the possibly of his allowing my transfer to a Canadian prison. We are also demanding in settlement that Bulgarian TV broadcast an editorial documentary on the discriminations and harsh conditions intentionally suffered upon foreign citizens within the Bulgarian penitentiary system. It documented fact and common knowledge that the State of Bulgaria has denied to foreign citizens any possibly of transfer to prisons within their home countries solely for reasons of a civil or administrative penal debts the Government of Bulgarian knows are not collectable. Furthermore, the Minister of Justice Bulgaria has issued ordinances that directly act to deny foreign citizens their rights according to law, rights which Bulgarian citizens are allowed to enjoy but foreign citizens are not, even though they are in the same prisons. We are also demanding a settlement by contribution of money or equipment to the Sofia Central Prison, 10th Foreigner Prisoners Group. This amount sufficient to repair the leaking roofs, absent heating and miserable toilet/shower facilities of the building where foreign citizens are housed, such a contribution should be sufficient to allow for the establishment of a computer education 19305855.doc

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and legal aid center where foreign prisoners could access universities in their own countries or obtain legal guidance or materials in their own languages on Bulgarian and international criminal and civil law. This possible only by allowing controlled access to the internet;

5. An personal apology to me to be broadcast on national and international television interviewers Martin Karbovski and Kivork Kivorkian retracting their untrue and falsely libelous statements. Interviews Martin Karbovski and Kivork Kivorkian knowingly and intentionally acted to cause my family and me personal injury by using false words and making a malicious report that was injurious defamation uttered in spoken words or made by looks, signs, and gestures that unfairly and cruelly acted to cause further injury to my reputation and to continue the perpetuation of a lie in the public’s consciousness. Specifically, that I was somehow involved in and convicted and imprisoned for having “defrauded” and “personally taken money” from individual Bulgarian citizens who I “defrauded”. Interviews Martin Karbovski and Kivork Kivorkian and Bulgarian National TV knowingly acted to create and maintain in the publics mind these untrue facts and a defamatory image of my having “enriching” myself by way of a “defrauding” Bulgarian citizens and that my family or I still had in our possession “these criminal proceeds hidden somewhere – possibly buried in jars” and that I only “wanted to a transfer to a Canadian prison so I could avoid punishment”. We demand that Bulgarian TV broadcast a program that assists in the rehabilitation of my reputation before the public by broadcasting inter alia the true facts of my alleged crime, my conviction, the juridical person that it is alleged I have somehow injured, my actual financial status and why it is that I want to be transferred to a foreign prison. 6. An editorial on why the Ministry of Justice and Ministry of Finance is refusing to investigate the truthfulness of my “signal” to them as enclosed? I have written you in the past and never received an answer. Frankly, I do not now expect an answer. Therefore this letter is only a formality for my family and me to invite Bulgarian National TV to discuss a negotiated settlement. In failing that I will then ask my family to proceed to a United States and Canadian courts of law and then possibly get your attention. So be advised that this time if my family and I do not receive a reply within 7 (seven) days from the receipt of this letter then we will definitely proceed to court with our claims.

Michael Kapoustin Sofia Central Penitentiary 10 Prisoners Group 21 General Stoiletov Sofia, Bulgaria

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Главен Изпълнител Г-п Венелина Гочева Вестник 24 Часа Цариградско Шосе 47 1504 София

редактор директор

Буг. Editor and Chief ”24hours” Newspaper Ms. Venelina Gocheva 47 Tzarigradsko Shosse Blvd. Sofia, 1504 Bulgaria Ref:

Publications of; December 16th, 2003 - “Коя е Музата на Затворника11” December 17th, 2003 - “Майкъл Капустин си Продава Органите12” December 18th , 2003 - “Продавам дроб и костен мозък, за да се върна в Канада”13

Saturday, January 10, 2004

Г-п Венелина Гочева My family and I are formal attempting to reach a friendly agreement with 24 Hours and this solely in order to avoid the costs and distress of seeking a settlement by bringing a slander and libel claim before the Federal District Court of Washington, D.C. in the United States of America. We seek some form of agreement in compensation for the injury suffered to the public rehabilitation of my reputation, and thereby attempting to reverse the severe damage already caused by the numerous defamatory publications of 24 Hours. Here, I am referring only to the following untrue libelous and defamatory words and phrases published by your daily as follows.

1. On December 16th, 2003 you published an editorial entitled “Коя е Мусата на Затворника” т.е. the use of the word “Фараонът14” is libelous and defamatory. When identifying me to the readers of your 11

“Which (what) are the Muses of Prisoners” “Michael Kapoustin sells his Organs” 13 “I am selling my liver and bone marrow so I can return to Canada” 14 “Pharaoh” 19305855.doc 12

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publication you attributed and applied to me the negative and derogatory description of “Фараонът”. This description is libelous and defamatory for it directly applies to me the untrue and negative image of my being a mass public swindler and fraud, something which your paper knew to be untrue, a Bulgarian criminal court of appeal had acquitted me on all charges alleging fraud and misappropriation from individual Bulgarian citizens.

2. On December 17th, 2003 you published an editorial piece entitled “Майкъл Капустин си Продава Органите” т.е. the phrase “Фараонът крал пари чрез пирамида15” is libelous and defamatory because it untruthfully implies to the public at large that I am convicted for misappropriating money not having lawfully been the patrimony of my company LifeChoice; “Той се надява са парите да извоюва свобода16” is libelous and defamatory because it is untrue and states a falsehood that I am attempting to buy freedom; “Капустин излежава 17г. за присвояане чрез Фирмата Лайф Чойс”17 is libelous and defamatory because it is untrue and directly implies that my company LifeChoice was a criminal enterprise and vehicle for misappropriation from third persons. Again, 24 Hours has continued to injure me by maliciously identifying me in its publication with the degrading and injurious defamatory and derogatory term of “Фараонът”. Furthermore 24 Hours misleadingly and maliciously describes the reason for my imprisonment and crime as the “Фараонът крал пари чрез пирамида”. This is libelous and defamatory because it is untrue and only perpetuates the negative and a deeply disturbing and injurious image in the public’s mind that I was somehow convicted for using my company “LifeChoice” only as a means for misappropriating money from Bulgarian citizens. This is not true. My conviction is for a foreign company having allegedly failed to return funds to my company (LifeChoice), funds that I did lawfully transfer abroad with the agreement of directors and shareholders. These particular funds are established by a Bulgarian criminal court of law as lawfully being the patrimony of my company LifeChoice and not belonging to any Bulgarian physical person; Additionally; “Той се надява са парите да извоюва свобода.” is a libelous and defamatory phrase because it is untrue and falsely creates an impression that I am attempting to buy my freedom. This is not true; Again; “Капустин излежава 17г. за присвояане чрез Фирмата Лайф Чойс” is a libelous and defamatory phrase because it continues to perpetuate what your publication knows to be untrue and acts to aggravate the earlier libels published by 24 Hours. Your publication knowing act to maintain in the public’s mind the malicious falsehood that I was using my company “LifeChoice” only as a means for misappropriating money from third persons. This falsehood directly acts to create an injurious and defamatory impression within the public consciousness that my company LifeChoice is and remains a criminal enterprise and vehicle for misappropriation and not, as the

15

“The Pharaoh stole money through the Pyramid” “He is hoping that with the money he can earn his freedom” 17 “Kapoustin is serving a 17 year sentence for embezzling through the Pyramid LifeChoice” 19305855.doc 16

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Bulgarian criminal court’s Judgment shows, the sole victim of that alleged misappropriation for which I am sentenced.

3. December 18th , 2003 – “Продавам дроб и костен мозък, за да се върна в Канада” т.е. “изгорелите от пирамидата “Лайф Чойс” ...”18 is libelous and defamatory because it creates in the public mind the untrue and injurious image that my company LifeChoice was a criminal organization. The phrase is offensive, libelous and defamatory because it continues to perpetuate in the public mind what is untrue and an injuriously defamatory image preventing LifeChoice from reorganizing and reclaiming its property from the State of Bulgaria. The settlement my family, the company LifeChoice and I are seeking from 24 Hours is its agreement to publish a series of editorial pieces retracting the untrue and libelous words and phrases identified above. Furthermore, 24 Hours to present the actual facts established by the Bulgarian criminal court and the EC case of Lukanov v. Bulgaria where the EC determined that transferring funds abroad is not a crime and thereby assisting in the rehabilitation of my reputation before the Canadian, American and Bulgaria public whom 24 Hours has misled. Also I am seeking an investigative editorial by 24 Hours that documents, in detail, the official corruption, discriminations and harsh conditions intentionally suffered upon and by foreign citizens within the Bulgarian penitentiary system. Foreign citizens are forced to pay bribes to officials of the Ministry of Justice and to Bulgarian prisoners. This is the only way to have our prison cells repaired and furnished. We are not allowed to secure work or education and therefore will have no possibly for parole or transfer to prisons in our home countries, at least not until bribes and the State of Bulgaria are paid or someone in this government acts to end these abuses. It is a crime to ask foreign prisoners to pay money before they are allowed access to “judicial equality and humane treatment” from officials of the Ministry of Justice Bulgaria, officials who refuse to honor or recognize as binding upon them Bulgaria’s international agreements on the treatment of prisoners. Specifically, the 24 Hours editorial should address those Bulgaria Minister of Justice ordinances that directly act to deny foreign citizens their rights according to Bulgarian and international law. Legal rights which Bulgarian citizens are enjoying in prisons but foreign citizens are denied. An editorial on why the Ministry of Justice and Ministry of Finance is refusing to investigate the truthfulness of my “signal” to them as enclosed? In the past I have written you about such slanders and abuses. Never have I received a reply. Frankly, I do not now expect an answer. However, the formality is for me to invite 24 Hours towards a negotiated settlement and failing that to then ask a court of law to get your attention. So be advised that this time if my family and I do not receive a reply within 7 (seven) days from the receipt of this letter then we will definitely proceed to court with our claim.

18

“The burned from the Pyramid LifeChoice” 19305855.doc

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Michael Kapoustin Sofia Central Penitentiary 10 Prisoners Group 21 General Stoiletov Sofia, Bulgaria

19305855.doc

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