PRELIMINARY STATEMENT

This matter comes before the Court upon the Order of the Court of Appeals for the Ninth Circuit dated April 21, 1980, in Case No. 80-1189, United States of America v. Joseph E. Seide, Central District of California, No. CR 79-0939-AAH.

Said Order of the Ninth Circuit states as follows:

Pursuant to the aforesaid order of the Ninth Circuit Court of Appeals, this Court has held two hearings, the first one on Wednesday, May 7, 1980, the second one on Friday, May 9,1980. In complying with the Order of the Court of Appeals, this Court in its Wednesday hearing discovered what appeared to be grave discrepancies in statements made by the defendant and his attorney regarding the former’s financial status and Motion to Appeal in Forma Pauperis.

On March 7, 1980, defendant stated in a financial report attached to the Probation Presentence Report that he had cash of $29,000.

Defendant, also through his counsel, Rowan K. Klein, filed on April 30, 1980, in this Court his Motion for Bail Pending Appeal, supported by a copy of a Motion for Release Pending Appeal made before the Ninth Circuit, which included a Declaration executed by Mr. Klein under penalty of perjury on April 2, 1980, wherein he stated: “Mr. Seide has $29,000 in cash on hand and owns German bonds which are valued at $280,000.” (Page 1 of said Declaration of Rowan K. Klein made under penalty of perjury).

Yet, curiously enough, in defendant’s Motion to Appeal in Forma Pauperis, received by the Clerk of this Court on April 23,1980, denied by the Court and filed on April 28, 1980, the defendant stated that he had no cash, and the only assets he claimed were some 1931 German Bonds, adding that in the previous twelve months he had received $100,000.00 income consisting of a settlement of an insurance claim. Said motion was signed by both the defendant and his attorney under penalty of perjury.

The Court has given full opportunity to the defendant Seide and his attorney, Mr. Klein, to explain the discrepancies between these three items. The Court cannot understand these inconsistencies as being other than indications of possible perjurious conduct by Mr. Seide, and perhaps even some aiding and abetting by his counsel, Mr. Klein.

Both the attorney, and the defendant upon his attorney’s advice, have and each has refused to give any explanation whatsoever or answer any questions about these apparent discrepancies, and the indications of possible perjurious conduct and the possible aiding and abetting thereof.

The Court has fully reconsidered, as directed by the Court of Appeals for the Ninth Circuit in the aforesaid Ninth Circuit Order, this District Court’s Order Denying Bail Pending Appeal.

At the hearing on Wednesday, May 7, 1980, and today’s May 9, 1980, hearing, the Court made its findings orally, which it then ordered be put in writing and transmitted to the Court of Appeals, pursuant to the Court of Appeals aforesaid Order. All of such findings are in support of and constitute a statement of reasons for this District Court’s decision denying bail pending appeal.

FINDINGS OF FACT AND STATEMENT OF REASONS

1. The appeal is frivolous and is not taken in good faith. It is without merit and does not present a substantial question within the meaning of 28 U.S.C. § 1915 (a) and 28 U.S.C. § 753 (f) for the following reasons:

2. The defendant poses a very grave danger to other persons and to the community, and therefore, is not entitled to bail on appeal, all pursuant to 18 U.S.C. § 3148 , for the following reasons, which are hereby stated in detail, pursuant to the aforesaid Ninth Circuit Order:

ORDER

ACCORDINGLY, IT IS HEREBY ORDERED AND ADJUDGED:

1. That this “STATEMENT OF REASONS FOR DECISION DENYING BAIL PENDING APPEAL,” be and the same hereby is transmitted forthwith to the Court of Appeals for the Ninth Circuit, and particularly, to the Motions Panel which made and entered the aforesaid Ninth Circuit Order, to wit: The Honorable J. Clifford Wallace, and The Honorable J. Blaine Anderson, Circuit Judges, there to abide upon further order of the Ninth Circuit, since the Court herein has, upon reconsideration, as ordered in the aforesaid Ninth Circuit Order of Remand, come to the inescapable conclusion that the aforesaid findings and Statement of Reasons are true and correct and that bail on appeal should be denied to this defendant.

2. That a true and correct certified copy of the Reporter’s Transcript of proceedings at the sentencing hearing on Monday, March 24, 1980, be, and the same hereby is attached hereto as Court’s Exhibit 1 and incorporated herein as part of the Court’s Statement of Reasons Denying Bail Pending Appeal, as though fully set forth verbatim herein.

3. That the Clerk make sufficient certified copies hereof, and forward the same by certified mail, return receipt requested, to the Clerk of the Ninth Circuit Court of Appeals, to the aforesaid Motions Panel thereof, and to the attorneys for the Government and for the defendant herein, all in connection with the within proceeding, numbered 9th Cir. No. 80-1189 (C.D. Cal.No. CR-79-939).