Oceana Quality Construction & Property Management

May 4, 2000

TO: AL RAZUTIS

FROM: BRENDA MCGONAGLE

RE: INCIDENT / CONFRNTATION IN CABO SAN LUCAS ie. Ever wish you were a fly on the wall?

This incident occurred the day following the scheduled meeting between the residents of Los Zacatitos and the publisher of the Gringo Gazette) Carrie Duncan.

I was having lunch with a girlfriend, Karen Harsch at a local deli named Sr. Greenburg's. We sat down at a booth and located immediately behind us was another friend of mine, Chris Gaglia. She was lunching with some other friends and they were getting ready to leave. After they left, Karen and I turned back to our menus to see what we wanted to order. I then heard a

familiar voice and realized that it was Carrie Duncan. She was speaking with a mexican man whom I did not recognize. I told my friend Karen to listen to what Carrie was saying because undoubtedly she would bring up the subject of our meeting the night before. As I anticipated, Carrie and (who I later found out was, David Flores her editor) began discussing the meeting and started out with a very defamatory description of the people who own the cantina where the meeting was held. She then went on to say how boring this meeting was and how she wanted (and did) rile everyone up by making the opening statement that someone would have to fill her in on the subject at hand because she hadn't read the latest issue and had no idea why she was asked to the meeting. Note: Approximately 10 minutes later she admitted to having to edit every word in her publication due to the poor english spoken by her editor, David Flores.

Carrie then asked David how in fact he obtained the information printed in the first article dated February 28, 2000 as the people of Zacatitos were convinced the story was heresay provided by contractor, Joe Nied and friend, Ted Goodman, and was not researched by obtaining the official police complaint filed by Mr. Nied. Nor did the author of the story, David Flores (who wrote the article using the pen name "Bill Jerome Holmes") try to contact any of the people named in his articie before writing it.

Carrie then almost pleadingly asked David several times, "please tell me you researched this article by reading the police report. We never heard David Flores admit to reading a police report.

Note: This was very important to Carrie, because at our meeting the night before, she had repeatedly assured everyone her stories are always researched completely and that anything that appeared in this article came directly from the police report. We all knew it was a lie because everyone present at the meeting had read both the article and the police report (as we had a copy of it) and the information written in the article was either completely incorrect and false or exaggerated.

Carrie then said to David, "well, it looks like the contractor (Joe Nied) has duped us". It was at that point that I thought that maybe our meeting of the night before had actually done some good and convinced this lady that she had falsely accused both Peter and Gene of something they didn't do. It was then that David said to Carrie, "well you know, Peter provided Gene with the Diesel to start the fire and Gene is an employee of Peter's company, Oceana".

Note: Gene actually used gasoline to douse the flies and mosquitoes, but the Gringo Gazette continues to insist upon the diesel story.

It was then that I turned around, apologized for eavesdropping and again tried to explain that their information was wrong and that we had hoped that after our meeting the night before, Carrie would hear from all the people that were directly involved in this situation and realize that this article which she had allowed printed in her publication was in fact false and incorrect.

Carrie then said to me, "don't think that your little meeting or what your saying now is going to help your case any". I told her that besides her slanderous article there was no case against us, "no charges had been filed against Peter, nor was he under investigation and Gene had never been arrested. Carrie and David then got up and walked out...

Approximately two weeks later the second series of articles appeared in the Gringo Gazette, this time written with Carrie Duncan's name as author and a horrible letter from the publisher.