The following pages are from a sworn deposition of Marvin Jones, thepower-of-attorney equipped financial advisor to Senator Pryor's in-laws.

The deposition was a part of First Security Bank vs the Harveys et ai, CaseNo. CV2009-775-1, and filed in White County, AR Circuit Court.

In this deposition, Jones indicates Bonnie Harvey provides monthlyassistance to her "kids that struggle" in the amount of $5,000 to $24,000 amonth. Jones admits that this money is for house payments, schoolexpenses, and other needs. Using the figures from Jones' swornstatement, at a bare minimum this amounts to about $80,000 a year,and these payments have occurred for years.

Later in this deposition, we specifically see that Jones was referring to thePryor household when he mentioned "kids that struggle." A monthlyexpense sheet for Ed Harvey from a previous year lists the Pryors andtuition as a line item expense. Remember, that Jones indicated this Harveyassistance was not just for schooling, but also for house payments andother needs, and was up to $24,000 monthly. Documents seem to indicatethat the Harveys, now shielded from IRS scrutiny, make the house paymentthat keeps the roof over Senator Pryor's head.

Additionally, the idea of diverted monies to a Harvey relative, this timedirectly from the companies, is raised in a filing in Federal Court, EaternDistrict of Arkansas, in the case of Bradbury vs USA Case No. 4:11­CV-810- DPM.

See following pages...

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1 eighty to 120 I approximately?

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A.

Q.

A.

No, I don't. I'm not involved in that.

All right. ~fuat else?

Life insurance policies and I don't know the amount of

5 that.

6 Q. Okay. tt'1hat else? Ace the life insur:ance policies on

7 her life or his?

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A.

Q.

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Q.

A.

I'm not sure. I think both, quite honestly.

All right. Do you :~lOW what the value of those are?

No.

Are they term life or whole life?

I don't know.

Okay. Go ahead.

General living expenses. I know she helps with the

15 family.

16 Q. Tell me what thfit consists of when you say "helps \vith

17 the family." 'Vl1hat: does she do?

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19

A.

Q.

I t"1l.ink there are some kids that struggle.

How much is ,she paying them a month or for their

20 benefit, I guess?

21 A. It is variable but it can go an~lhere from -- I've seen

22 checks for 24,000 to 5,000 a month.

23 Q. Do you know \.!hat that's for as far as _.- you say help.

24 Is it paying bills for them?

25 Helping them with house payments, helping kids in

Bushman Court Reporting501.372.5115

school, help them with other needs.

Q. Anything else that you can think of that makes up the

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3 eighty to 120?

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A.

Q.

A.

Q.

I know they have quite a few medical bills.

Do they have Medicare?

Yes.

Do they have any supplemental insurancB{ health

8 insurance?

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A.

Q.

I think they just got some.

Okay. How much are their medical bills over and above

11 'itlhat Medicare or the supplemental doesn I t pay?

12 A. r. 'In not sur,e. I'm just nO\~.;r actually just no\'v getting

13 into that.

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Anything else?

Nothing that I can recall that comes to mind right nO'/li '.

So they -- you said -- is that line of credit secure?

Yes.

~tatfs it secured by?

~rheir personal residence.

Personal residence where?

Ten River Mountain Road.

vlliy are they 'rexas residents, just out of curiosity?

I don't know.

All right. So you said since you've been involved,

25 sOIuewhere around June or July of 2008 ( Mr. and Ms. Harvey

Bushman Cour.t Reporting501.372.5115

Edwllrd M. H~r\'ey

[ocome Slat"ll.lCntFor the Six Mor..lhs Ending 1une 30,2008

CUlTent Month Year to DateRevenucsMiscelJanc<lUs Income :$ 181.38 0.00 $ 181.38 0.00Interest Income 92,231,98 0.00 92,237.98 0.00Gain/Loss on Sale ofAsset 14,483.28 000 14,483.28 0,00Gain! Loss on fnvestment 303,283.30 0.00 303,283.30 0.00Dividend-Blink OfAmeric<l 13:>.12 0.00 133.12 O.O()UnreaUzcd income f/ lnvstmls (3_~1,14/).lQ) 0.00 (367,14().lQl 0.00

To!a! Rev::nues 43,118.96 0.00 43,178.96 0.00

Cost ofSales

Total ('A).~t of&11es 0.00 0.00 0.00 0.00

Gr(l~ Pl'Ofit 43,178.96 0.00 4J.L 78.96 0.00

ExpeowsSubscriptions 85.00 0.00 85.00 0.00Gifts 5,700.00 0,00 5,700.00 0.00Alimony 25,000.00 0.00 25,000.00 0.00

~Bonnie's Account ( J 75.000.00 0.00 75,000.00 0.00l'ol1er & Adams Tuition f rJt) r 2,562.5"0 - 0.00 2,562.50 0.00Persollal Expense 57,734.61 0.00 51,734.67 0.00Ca:;h Withdrawal 2,gOO.OO 0.00 2,000,00 0.00Lt'gal 1,7!0.33 0.00 1,710,33 0.00Telephone 1,2l7.77 0.00 1,211.77 0.00Utilities· til 0 River Mt. Rd. 16,753.% 0.00 f6.753.96 0.00Utilities" I"t. Lauderdale 60.10 0.00 60.10 0.00Interest Expell8c 87,614.22 0.00 87,614.82 0.00Auto Lice/ll1cS 7,50 0.00 7.50 0.00Interest Expense-LOC 9,586.39 0.00 9,586.39 0.00Utilit.ws-# 6 River Mounlllni 2,821.74 0.00 2,621.74 0.(10Household Expense-fJ6 River Mtn 2,891.00 . 0.00 2,891.00 0.00UtiIltie3-12 River Mtn 1,166.61 0.00 1,166.6l G.OOHousllhc1d Exp-12 River MIll .55'1.09. 0.00 557.09 G.OOHQu~ho!d Ex:p -LR 81,787.30 0.00 81,787.3lJ 0.00Household Exp.. Ft. :3,300.00 0.00 3,300.00 0.00Bank Charges 60.00 0,00 60.00 0.00Penalty nnd Interest IS8:l~ 0.00 188.36 O.CO

Tobl Expenses 377,80S.l t i 0.00 317.805.14 0.00

Net Income j~- 33;M26.18) 0.00.($ 334,626.18) 0.00

7/9/2009 td 3~Ul PM rOt· Management )lUl'pMCS Only Page:)

Case 4:11-cv-0081 O-DPM Document 16 Filed 02/08/12 Page 1 of 14

UNITED STATES DISTRICT COURTFOR THE EASTER~DISTRICT OF ARKANSAS

WESTER~DIVISIO~

R4.LPH BRADBlTRY PLAINTIFF

Y. Cast' 1\'0. 4: 11-CV-810 - DPM

UNITED STATES OF AMERICA DEFENDANT

V.

R4.LPH BRADBURY AND RICK ACKLIl\' cor.!'TER DEFEl\'DA1'\TS

SEPARATE ANSWER OF COUNTER DEFENDANT R4.LPH BRWBURY

COMES NOW separate Counter Defendant. Ralph Bradbury ("'Bradbury") and for his

Answer (""Answer") to the COlUlterclaim ("'Counterclaim") of the Defendant. United States of

America ("Defendant"). alleges and states as follows:

1. Bradbmy admits the existence of the legal authorities recited in paragraph I of the

Counterclaim. Othelwise. Bradbmy lacks sufficient knowledge to admit or deny the matetial

allegations ofparagraph 1 of the Counterclaim and therefore denies same.

2. Bradbmy lacks sufficient knowledge to admit or deny the matetial allegations of

paragraph 2 of the Counterclaim and therefore denies same.

3. Bradbmy does not contest the jurisdiction ofthis Com1.

4. Bradbmy admits that Arkansas Tmcking and Continental Express are within the

jurisdiction of the Com1. Otherwise. Bradbmy denies the material allegations of paragraph 4 of

the Counterclaim.

5. Bradbmy admits the material allegations of paragraph 5 of the COlUlterclaim.

6. Bradbmy lacks sufficient knowledge to admit or deny the material allegations of

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Case 4:11-cv-0081 O-DPM Document 16 Filed 02/08/12 Page 9 of 14

37. Later on October 20.2009. ?vIr. Blackman received a fax iI-om lvIarvin Jones. The fax

was a power of attomey that Malvin Jones had for Edward M. Halvey. TIle Transcript describes

it a durable power of attomey. On January 11. 2010. the Transcl1pt records no flllther substantive

action or investigation by the Defendant other than a consultation and to complete tmst fund and

close the case as defimct and no assets. (Transcript pagt' 108). This action was again confirmed

in several subsequent entries in the Transcript.

38. On May 18. 2010. Randy Coleman. attomey for Bradbury. again contacted Mr.

Blackman with a Form 2848. (Transrript page 109)

39. On May 18. 2010. Mr. Blackman received a letter from Marvin Jones requesting

account information on Arkansas Tmcking. Mr. Blackman mailed that information to him. Mr.

Blackman also received a letter from Malvin Jones telling him that conceming the sale of the

tmcking company that no creditors were paid anything since the company had a negative book

value. The account inf()lmation previously mailed to Marvin Jones at 16609 Cantrell Road #12.

Little Rock, AR 72223, could not be delivered and was renImed to Mr. Blackman. Again the

tranScl1pt records that the taxpayer was out of business and had no assets. The decision was

again to close the case. (Tnnsnipt page 110).

40. One of the final entries in the HistOlY Infollllation of the Transcript on October 22.

2010. without further amplification. is "Fraud potential has been considered.'" (Traosnipt page

111).

41. Dming the time pel10ds recited above and because the Transcript is silent. apparently

there had been no record of disclosure by Mr. Jones to Mr. Blackman of other company assets

then existing fi:OIll which the tmst fund could have been paid.

For example. one such asset was the Continental Express tmck terminal property

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Case 4:11-cv-0081 O-DPM Document 16 Filed 02/08/12 Page 10 of 14

and the rent being paid by Celadon on that property to Continental Express in the amount

of $20,650.00 per month. Upon infoll11ation and belief. a pan of the Celadon rent was

dive11ed to an entity named Sentell Enterprises or an entity by similar name. in which a

relative of Bonnie Harvey had an interest. Upon infoll11ation and belief. the rent funds

were not applied to payment of the t111St fimd.

b. In the TransclipL there is no record of disclosure by Mr. Jones to !'vir. Blackman

that he and the Harvey's were able to settle the above referenced residual $1.3 million

dollar Daimler debt for an amount of $600,000.00, which ostensibly freed up

approximately $700.000.00 for tax payments. (FOI page 148). Upon infonnation and

belief. these fimds were not applied to payment of the t111st fund by Marvin Jones or

Harvey.

c. In the Transcript. there is no record of disclosure by Malvin Jones to Mr.

Blackman of the disposition of the thuds from the liquidation of the $1.000.000.00

Certificate of Deposit with AIG. (FOI pagt> 56, 121 and 122). Upon infoll11ation and

belief these fimds were not applied to payment of the trust fund by Malvin Jones or

Harvey.

d. In the Transcript. there is uo record of disclosme by Malvin Jones to Mr.

Blackman that the liquidation of Textron receivables yielded positive net funds to

Continental Express and Arkansas T11.lcking. Upon infoll11ation and belief and from the

swom deposition testimony of Marvin Jones in other cases, the net received from the

liquidation of the receivables was approximately $700,000.00 to $800.000.00. (FOI

pages 121, 122, 127, 133 and 135). Upon illfonnatioll and belief. these fimds were not

applied to payment of the tmst fimd by Marvin Jones or HaIvey.

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