UNITED STATES DISTRICT COURT
		CENTRAL DISTRICT OF CALIFORNIA
		     WESTERN DIVISION

			- - -

	HONORABLE MARIANA R. PFAELZER, JUDGE PRESIDING

			- - -



UNITED STATES OF AMERICA,	:
	PLAINTIFF.		:
				:
	   VS.			:
				:
KEVIN DAVID MITNICK,		: 
LEWIS DEPAYNE,			:
	DEFENDANTS.  		:  NO. CR. 96-881 MRP

		REPORTER'S TRANSCRIPT OF PROCEEDINGS 
			LOS ANGELES, CALIFORNIA 
			MONDAY, MARCH 30, 1998

 
			BETH E. ZACCARO
			OFFICIAL COURT REPORTER
			414 UNITED STATES COURTHOUSE
			312 NORTH SPRING STREET
			LOS ANGELES, CALIFORNIA 90012
  











                                                      (2)



APPEARANCES:   

FOR THE UNITED STATES OF AMERICA

	NORA M. MANELLA
	UNITED STATES ATTORNEY
	STEVEN E. ZIPPERSTEIN
	ASSISTANT UNITED STATES ATTORNEY
	CHIEF, CIVIL DIVISION
	DAVID SCHEPER
	ASSISTANT UNITED STATES ATTORNEY
	CHIEF, CRIMINAL DIVISION
	BY:   DAVID SCHINDLER
	CHRISTOPHER PAINTER
	ASSISTANT UNITED STATES ATTORNEYS
	1100 UNITED STATES COURTHOUSE
	312 NORTH SPRING STREET
	LOS ANGELES, CALIFORNIA 90012
	
FOR DEFENDANT KEVIN MITNICK:   
	DONALD RANDOLPH, ESQ.

FOR DEFENDANT DEPAYNE:   
	RICHARD SHERMAN, ESQ.


 
























                                                      (3)


LOS ANGELES, CALIFORNIA, ON MONDAY, MARCH 30, 1998
BEGINNING AT APPROXIMATELY 1:30 P.M.


     THE CLERK:   ITEM NUMBER 8, CRIMINAL 96-881.  UNITED 

STATES OF AMERICA VERSUS KEVIN DAVID MITNICK AND LEWIS

DEPAYNE. COUNSEL, PLEASE MAKE YOUR APPEARANCE.

     MR. PAINTER:   CHRISTOPHER PAINTER AND DAVID

SCHINDLER FOR THE GOVERNMENT, YOUR HONOR.

     MR. SHERMAN:   GOOD AFTERNOON, RICHARD SHERMAN WITH

MR. DEPAYNE. MR. DEPAYNE IS PRESENT IN COURT WITH COUNSEL.

     MR. RANDOLPH:   GOOD AFTERNOON, YOUR HONOR, DONALD

RANDOLPH WITH MR. MITNICK WHO IS PRESENT.

     MR. SHERMAN:   YOUR HONOR, THIS MIGHT TAKE A FEW

MINUTES. IS IT CONVENIENT FOR YOU TO HEAR US RIGHT NOW OR

DO YOU WANT TO PUT US OVER UNTIL LATER IN THE CALENDAR?

     THE COURT:   HOW ABOUT 2:15?

     MR. RANDOLPH:   2:15 IS FINE.

     MR. SHERMAN:   THANK YOU.

     THE COURT:   2:15.

     MR. PAINTER:   THANK YOU, YOUR HONOR.

     (OTHER COURT MATTERS.)

     THE CLERK:   UNITED STATES VERSUS KEVIN DAVID MITNICK

AND LEWIS DEPAYNE.

     MR. PAINTER:   CHRISTOPHER PAINTER AND DAVID

SCHINDLER.

     MR. RANDOLPH:   GOOD AFTERNOON, YOUR HONOR, DON



                                                      (4)


RANDOLPH ON BEHALF OF MR. MITNICK WHO IS PRESENT WITH COUNSEL.

     MR. SHERMAN:   GOOD AFTERNOON, YOUR HONOR, RICHARD 

SHERMAN WITH MR. DEPAYNE WHO IS ALSO IN COURT.

     MR. RANDOLPH:   MAY I ADDRESS THE COURT BRIEFLY

BEFORE WE BEGIN, YOUR HONOR?

     I THOUGHT THAT I HAD FILED A WRITTEN JOINDER IN MR. 

DEPAYNE'S MOTIONS. I WASN'T ABLE TO LOCATE MINE IN THE FILE

SO -- 

     THE COURT:   I DON'T THINK YOU DID.

     MR. RANDOLPH:   WITH THE COURT'S PERMISSION, I WOULD

LIKE TO JOIN IN HIS DISCOVERY MOTION.

     THE COURT:   YOU MEAN YOU ARE JUST GOING TO START NOW

AND ORALLY JOIN IN?

     MR. RANDOLPH:   IF THE COURT WILL ALLOW, JUST THE 

MOTIONS, YOUR HONOR.

     COURT:   I WON'T.

     MR. RANDOLPH:   ALL RIGHT. I HAVE THREE MOTIONS,

YOUR HONOR, ON CALENDAR, THE MOTION FOR COMPUTER ACCESS,

THE MOTION FOR SUPPLEMENTAL LAW LIBRARY TIME AND THE MOTION

TO CONTINUE THE TRIAL DATE.
     I WOULD ASK THE COURT THAT INASMUCH AS I HAVE FILED 

AND I BELIEVE THE CLERK HAS SET A MOTION TO HAVE BAIL SET 

ON BEHALF OF MY CLIENT AND THAT IS SET --

     THE COURT:   I AM NOT GOING TO GIVE YOUR CLIENT BAIL.



                                                      (5)


     MR. RANDOLPH:   I THINK THE MATTER IS SET FOR NEXT

 MONDAY, YOUR HONOR, AT 1:30.

     THE COURT:   WELL, I MAY TAKE IT UNDER SUBMISSION 

WITHOUT ORAL ARGUMENT BECAUSE I AM NOT GOING TO GIVE HIM 

BAIL.

     MR. RANDOLPH:   WELL, I WOULD URGE THE COURT AT ANY

RATE -- THE ISSUES IN THOSE 3 MOTIONS THAT I JUST RAISED

ARE INTERTWINED WITH THE BAIL ISSUE, AND I THINK IT WOULD

SAVE JUDICIAL ECONOMY AND MAKE MORE SENSE IF THEY COULD BE

HEARD ALL AT THE SAME TIME. THAT IS MY SUGGESTION.

     FINALLY, YOUR HONOR, MR. SHERMAN HAS ASKED ME TO 

REQUEST OF THE COURT THAT HE BE ALLOWED TO ADDRESS THE 

COURT FIRST ON HIS DISCOVERY MOTIONS.

     I HAVE NO OBJECTION TO THAT IF THAT IS ALL RIGHT.

     THE COURT:   THAT'S FINE. WHATEVER ORDER YOU WANT TO 

DO THEM IS FINE. PLEASE.

     MR. SHERMAN:   IF IT PLEASE THE HONORABLE COURT AND

COUNSEL, MY REMARKS WILL BE BRIEF, YOUR HONOR, I THINK NO

MORE THAN FIVE MINUTES. I KNOW YOUR HONOR'S PRACTICES WITH

PLEADINGS THAT ARE FILED WITH THE COURT.

     THE COURT:   IT IS UP TO YOU, MR. SHERMAN.

     MR. SHERMAN:   WELL, I THINK I CAN SAY EVERYTHING I

HAVE TO SAY IN ABOUT 5 MINUTES.

     I WOULD FIRST REQUEST THAT THE GOVERNMENT IN

RESPONDING TO THESE ORAL ARGUMENTS AND IN REGARD TO THEIR



                                                      (6)


RESPONSE RECALL THAT I REPRESENT MR. LEWIS DEPAYNE AND AT 

THIS JUNCTURE I HAVE NO IDEA AT ALL OF WHAT ITEMS OF 

PHYSICAL, TESTIMONIAL OR COMPUTER EVIDENCE THE GOVERNMENT 

WILL SEEK TO INTRODUCE AGAINST HIM IN A TRIAL OF THIS 

CASE. I AM AWARE OF ONE TAPE RECORDING. I THINK I 

MENTIONED IT WITH REDUNDANCE, AND I WOULD CONCEDE FOR THE 

PURPOSE OF THIS ARGUMENT BEFORE THE COURT THAT THAT TAPE 

RECORDING JUSTIFIES ONE COUNT IN THE INDICTMENT BUT AS TO 

EVERYTHING ELSE I AM IN THE DARK.

     INSOFAR AS DEPAYNE IS CONCERNED, THIS TRIAL DOES NOT 

PRESENT SIMPLE ISSUES BECAUSE I JUST DON'T KNOW WHAT THE 

GOVERNMENT IS GOING TO DO.

     THE GOVERNMENT COMPLAINS THAT MY MOTIONS ARE

BOILERPLATE. THAT IS NOT ENTIRELY TRUE. IT IS TRUE IN

GREAT PART. I WOULD BE THE FIRST ONE TO ADMIT IT, AND AS A 

MATTER OF FACT, I THINK I DID THAT DISCOVERY MOTION MYSELF 

ABOUT 20 YEARS AGO, BUT YOUR HONOR, THE REASON FOR THE 

BOILERPLATE MOTIONS IS THAT I DON'T HAVE ANY BASIS UPON 

WHICH TO GO FORWARD WITH SPECIFIC MOTIONS.

     I HAVE BEEN FURNISHED NOTHING BY THE GOVERNMENT.

     WHAT THE GOVERNMENT HAS DONE IN THIS CASE IS IGNORE 

MY REQUESTS FOR DISCOVERY AND ALLEGE THAT THEY FURNISHED ME

WITH EVERYTHING THEY HAVE TO.

      NOW I DO NOT WISH TO BE IMPERTINENT BUT MAY I

INQUIRE OF THE COURT IF IT HAS IN MIND THOSE LETTERS THAT I



                                                      (7)


ATTACHED -- THOSE 2 LETTERS. ALL RIGHT.

     NOW IN THOSE LETTERS I THINK IT IS MADE VERY CLEAR. 

I SAID PLEASE TELL ME WHAT THE EVIDENCE IS AGAINST DEPAYNE. 

IN THE FIRST LETTER I SAID, "YOU HAVE MADE TWO VOLUNTARY 

SUBMISSIONS. I CAN'T FIND ANYTHING RELATED TO DEPAYNE."

     IN THE SECOND LETTER I SAY "YOU HAVE MADE ANOTHER 

VOLUNTARY SUBMISSION. THERE IS NOTHING RELATED TO DEPAYNE. 

I DON'T KNOW WHAT YOUR CASE IS ABOUT."

     NOW I WAS AWARE, OF COURSE, THAT THERE WAS A LARGE 

STORE OF COMPUTER EVIDENCE.

     NOW, WHAT THEY DID FURNISH US, FOR EXAMPLE, WITH A 

GREAT FLOURISH AND PRIDE WAS AN 187 PAGE INDEX OF MITNICK'S 

COMPUTER FILES.

     NOW THAT INDEX IS MEANINGLESS TO ME, YOUR HONOR, 

BECAUSE IT IS NOT AN EXPLANATORY INDEX.

     SUPPOSING I WERE TO WRITE A LETTER TO MR. FLORES. 

THE WAY I DO THINGS I WOULD WRITE "FLR LTR 

3. DATE," AND THAT IS HOW I WOULD DESCRIBE IT.

     I FIND MITNICK'S INDEX HAS THE SAME PROBLEMS.

     IT IS PERFECTLY INCOMPREHENSIBLE AND USELESS TO ME. 

NOW MR. DEPAYNE AND I EXPLORED IN CONSIDERABLE DETAIL, AND 

I TAKE IT IT WAS OBVIOUS FROM READING MY ACCOUNT OF WHAT 

HAPPENED AT F.B.I. HEADQUARTERS THAT MR. DEPAYNE WHO I 

THINK THE GOVERNMENT WILL ACKNOWLEDGE IS A COMPUTER EXPERT 

HAD TO EXPLAIN EVERYTHING TO ME.



                                                      (8)

     HE EXPLAINED IT THERE. HE EXPLAINED IT IN FRONT OF 

THE AGENTS. WE FOUND A PIECE OF EVIDENCE THAT WAS VERY 

EXCULPATORY AND YET THE GOVERNMENT AGENTS SAID THERE "WELL, 

I HAVE LOOKED AT EVERY PIECE. I THINK SOMEBODY HAS LOOKED 

AT EVERY FILE."

     YOUR HONOR, THERE WERE THOUSANDS AND THOUSANDS OF 

FILES CONTAINING THOUSANDS AND THOUSANDS OF PAGES.

     NOW IF THE GOVERNMENT TELLS YOU THAT THERE ARE 

CERTAIN FILES THAT ARE ENCRYPTED AND THAT THEY WON'T ALLOW 

US TO DECRYPT BECAUSE OF ONE REASON OR ANOTHER, I CAN 

UNDERSTAND THAT.

     HOWEVER, THE FILES THAT THEY SHOWED US REQUIRED 

CERTAIN SOFTWARE TO TRANSLATE. THEY DIDN'T HAVE THAT 

SOFTWARE AVAILABLE.

     MR. DEPAYNE SAYS THAT IT WOULD TAKE HIM SEVERAL 

YEARS TO READ THOSE DOCUMENTS. NOW THAT IS WHY I PUT IN 

SORT OF THAT LONG ARGUMENT AND I TALKED ABOUT THE DE LUNA 

CASE. JUST BRINGING IT UP, ABOUT 10 OR 12 YEARS AGO I GOT 

FROM EFREN MARGOLIN THE ACTUAL PLEADINGS IN THAT CASE. THEY 

WERE QUITE INTERESTING BECAUSE HE HAD ALL SORTS OF EXPERTS 

TALKING ABOUT HOW LONG IT WOULD BE.

     NOW, AS I SAID IN MY MOTION, IF THEY WISH TO 

CONTROVERT WHAT MR. DEPAYNE AND I HAD TO SAY ABOUT THAT 

THAT WOULD BE THE SUBJECT OF AN EVIDENTIARY HEARING BUT 

RIGHT AS WE STAND HERE TODAY THERE IS 4 YEARS OF



                                                      (9)


MATERIALS.

     NOW YOUR HONOR, I HAVE 2 SUGGESTIONS.

     MAY I MAKE THEM?

     THE COURT:   YES.

     MR. SHERMAN:   MY SUGGESTIONS ARE THIS:   THE

GOVERNMENT EITHER GIVE ME A LIST OF EXHIBITS THEY INTEND TO

USE AT THE TRIAL -- I UNDERSTAND THINGS COME AND GO OUT OF

AN EXHIBIT LIST, BUT AT LEAST A TENTATIVE EXHIBIT LIST SO

THAT I CAN GO TO THOSE EXHIBITS AND SEE WHAT THEY HAVE GOT;

THAT THEY GIVE ME THE JENCKS ACT STATEMENTS. LET'S SEE

WHAT THIS CASE IS ABOUT. I WILL RECIPROCATE. I OFFERED TO

DO THAT IN MY PLEADINGS.

     I DON'T WANT TO KID ANYBODY. I DON'T HAVE ANY RIGHT 

NOW. I HAVEN'T TALKED TO ANY WITNESSES RIGHT NOW. I HAVE 

BEEN DOING THIS A LONG TIME AS YOUR HONOR KNOWS, AND I WILL 

TELL YOU, YOUR HONOR, THAT I FRANKLY DON'T KNOW WHAT THE 

EVIDENCE IS GOING TO BE.

     THE GOVERNMENT WRITES ME A LETTER -- AND I AM JUST 

ABOUT DONE, YOUR HONOR -- THE GOVERNMENT WRITES ME A LETTER 

AND SAYS, "WELL, YOU KNOW, MR. SHERMAN, DEPAYNE HELPED 

MITNICK GET CREDIT CARD NUMBERS AND MITNICK USED DEPAYNE'S 

ACCOUNT ON SOME INTERNET PROVIDER."

     EVEN IF THAT WERE NOT RIDICULOUS ON ITS FACE BECAUSE 

OF THE SURROUNDING FACTS, IT IS CERTAINLY NOT INCRIMINATORY 

EVIDENCE.



                                                      (10)


     LET'S ASSUME THAT WAS A VALID THING TO TELL ME.

     WHAT EVIDENCE DO THEY HAVE TO SUPPORT THIS?

     I AM NOT AN UNREASONABLE MAN.

     WE ARE NOT GOING TO DO ANYTHING UNTOWARD, BUT I HAVE 

A MAN THAT IS CHARGED IN 14 COUNTS.
     THERE IS SERIOUS JEOPARDY. THE DOLLAR LOSSES MAY BE 

VERY GREAT, AND I WOULD JUST LIKE TO KNOW WHAT THE 

GOVERNMENT IS GOING TO DO.

     IF THE GOVERNMENT DOESN'T WANT TO DO THAT, THEN LET 

THEM RESPOND TO MY DISCOVERY MOTIONS IN DETAIL AND WITHOUT 

OBJECTION. IF THEY FEEL THEY MUST OBJECT TO SOMETHING OR 

THEY FEEL THEY MUST DISMISS SOMETHING TO THIS COURT IN 

CAMERA -- I MEAN, GIVE SOMETHING TO THIS COURT IN CAMERA 

WHICH THEY DON'T WANT TO GIVE ME, THAT IS FINE, YOUR HONOR, 

BUT I ASK THIS COURT VERY HUMBLY JUST TO HAVE THE 

GOVERNMENT TELL ME WHAT THIS CASE IS ABOUT.

     THE COURT:   NOW DO YOU WANT TO ADDRESS YOUR

MOTIONS?

     MR. RANDOLPH:   YES, I DO, YOUR HONOR.

     THE COURT:   NOW YOU WANT ME TO DO WHAT WITH RESPECT 

TO THE COMPUTER? LET'S PUT IT ON THE RECORD.

     MR. RANDOLPH:   ALL RIGHT.

     YOUR HONOR, HOPEFULLY WHAT I HAVE ADDRESSED IN MY

MOVING PAPERS WITH RESPECT TO COMPUTER ACCESS IS TO TRY TO

SET UP A PROCEDURE WHICH AT OUR LAST APPEARANCE THE COURT



                                                      (11)


THREW BACK AT THE GOVERNMENT AND DEFENSE COUNSEL TO WORK 

OUT IF THEY COULD BETWEEN THE TWO OF US.

     THE COURT:   AND DID YOU DO THAT?

     MR. RANDOLPH:   WE HAVE BEEN UNABLE TO DO THAT, YOUR

HONOR.

     THE COURT:   YES.

     MR. RANDOLPH:   I HAVE TRIED TO ADDRESS, AND I WILL

TRY TO ADDRESS NOW PRECISELY WHAT HAPPENED.

     IN ORDER FOR BOTH COUNSEL AND MY CLIENT TO BE ABLE 

TO MEANINGFULLY ACCESS AND REVIEW THIS INFORMATION, I THINK 

I HAVE TO ADDRESS TO THE COURT FIRST HOW IT IS TO BE DONE 

AND WHERE IT IS TO BE DONE. THE "HOW" IS THE EASIEST ONE, 

YOUR HONOR.

     THE COURT:   YOU HAVE NO ONE HELPING YOU?

     MR. RANDOLPH:   I DO, YOUR HONOR. YES, I DO.

     THE COURT:   BECAUSE I THOUGHT THAT WE HAD -- THE 

COURT HAD AUTHORIZED A VERY LARGE AMOUNT OF MONEY.

     MR. RANDOLPH:   I DON'T THINK THAT'S CORRECT, YOUR

HONOR.

     THE COURT:   WELL, IT IS PRETTY LARGE FOR A CRIMINAL 

CASE; ISN'T IT?

     MR. RANDOLPH:   I WOULD SAY THAT IS -- ACTUALLY FOR

THE LAST BILL THAT I SUBMITTED, YOUR HONOR, THAT WAS FOR

THE OTHER CASES. OTHER THAN THIS ONE, 2/3RDS OF IT WAS FOR

THE OTHER CASES, AND YES, I THINK THOSE PROCEEDINGS WERE



                                                      (12)


ELONGATED BEYOND ANYTHING THAT I ANTICIPATED.

     THE COURT:   DO YOU HAVE AN EXPERT IN THIS CASE?

     MR. RANDOLPH:   PARDON ME?

     COURT:   DO YOU HAVE AN EXPERT IN THIS CASE?

     MR. RANDOLPH:   I HAVE REQUESTED THAT THE COURT 

APPOINT AN EXPERT IN THIS CASE, YES.

     THE COURT:   SO YOU NEED HIM TO HAVE A COMPUTER AND

YOU NEED AN EXPERT.

     MR. RANDOLPH:   WELL, I THINK BETWEEN THOSE TWO,

YOUR HONOR, THE MOST IMPORTANT BY FAR IS FOR MY CLIENT TO 

ACCESS THE INFORMATION.

     AS THE COURT NOTED IN THE LAST HEARING, AND I THINK 

ACCURATELY, MY CLIENT IS ASTUTE IN COMPUTER MATTERS. HE IS 

ALLEGEDLY THE ONE WHO COMPROMISED MANY OF THESE -

     THE COURT:   ASTUTE, YES.

     MR. RANDOLPH:   AND SO THE MOST HELPFUL PERSON TO ME

IN GOING THROUGH THIS EVIDENCE WOULD BE MY CLIENT. THERE IS

NO QUESTION ABOUT IT. I DO NEED -- AND I HAVE ASKED FOR A

VERY, I THINK, MODEST SUM OF MONEY FROM THE COURT FOR AN

EXPERT TO ASSIST, IF THE COURT AGREES, IN COMPILING THE

HARDWARE AND THE SOFTWARE FOR MY CLIENT TO BE ABLE TO

ACCESS THIS INFORMATION, AND I HAVE SUBMITTED THAT TO THE

COURT, BUT HOW MY CLIENT IS TO ACCESS IT -

     THE COURT:   NOW WHEN YOU SAY HOW, WHAT DO YOU WANT 

THE COURT TO ORDER PHYSICALLY OVER THERE IN THE CENTER?



                                                      (13)


     MR. RANDOLPH:   WELL, I WOULD LIKE THE COURT TO

ALLOW DEFENSE COUNSEL --

     THE COURT:   A SPECIAL ROOM FOR HIM?

     MR. RANDOLPH:   NO. I THINK THE BEST THING IS TO DO

THE FOLLOWING, YOUR HONOR.

     WE HAVE DETERMINED OVER THE LAST COUPLE OF MONTHS 

THAT DISPITE THE FACT THAT THE INFORMATION IS IN VARIOUS 

SYSTEMS, THE GOVERNMENT COUNSEL IS INCORRECT IN TELLING THE 

COURT AT OUR LAST HEARING THAT THE DISCOVERY COULD NOT BE 

PLACED ON DISC.

     OUR COMPUTER EXPERTISE AND OUR INVESTIGATION TELLS 

US THAT ALL THE DISCOVERY THAT THE GOVERNMENT HAS, ALL 5 

MILLION PAGES OF IT CAN EASILY BE PLACED ON COMPUTER DISC 

PROBABLY AT A COST IN THE HUNDREDS OF DOLLARS, THAT THE 

GOVERNMENT GIVE TO THE DEFENSE - FIRST GIVE US A COPY OF 

THE COMPUTER DISCOVERY, NUMBER ONE, ON DISC. THAT IS THE 

FIRST THING.

     THE SECOND THING WE HAVE DETERMINED, YOUR HONOR, IS 

THAT WE CAN -- MY CLIENT CAN ACCESS THIS INFORMATION NOT 

WITH A ROOM FULL OF COMPUTER HARDWARE BUT WITH TWO 

ESSENTIALLY BRIEFCASE SIZED COMPUTERS AND RELATED POWER 

SYSTEMS WHICH CAN EASILY BE TRANSPORTED BY SOMEONE FROM OUR 

STAFF INTO THE M.D.C. AND REMOVED FROM THE M.D.C. UPON 

COMPLETION OF HIS-REVIEW ON THAT PARTICULAR DAY.
     THAT TO ME, YOUR HONOR, OBVIOUSLY THE FIRST -- I



                                                      (14)


THINK THE MOST COST EFFICIENT WOULD BE FOR THE COURT TO 

CONSIDER MY CLIENT'S BAIL MOTION AND LET HIM COME TO MY 

OFFICE AND REVIEW IT.

     THE COURT:   I AM NOT GOING TO GIVE HIM BAIL.

     MR. RANDOLPH:   I HEARD THAT, YOUR HONOR, AND SO

THAT IS -- I AM PASSING BY THAT ONE TO THE SECOND ONE, AND

THE OTHER POSSIBILITY IS FOR THE COURT -- IS FOR MY CLIENT

TO BE TRANSPORTED TO THE COURTHOUSE BUT AMONG OTHER

REASONS --

     THE COURT:   TRANSPORTED FROM M.D.C. TO THE

COURTHOUSE TO A ROOM WITH A COMPUTER?

     MR. RANDOLPH:   BUT YOU MADE THAT VERY CLEAR LAST

TIME THAT YOU WERE NOT INTERESTED IN THAT SO THAT ALLOWS

THE THIRD POSSIBILITY WHICH IS FOR MY CLIENT TO REVIEW IT

AT THE M.D.C.

     IT CAN BE DONE IF WE GET A COPY OF THE DISKS, IF THE 

COURT ISSUES AN ORDER THAT ALLOWS ME TO BRING IN 

ESSENTIALLY THE COMPUTER HARDWARE WHICH INCIDENTALLY, YOUR 

HONOR, WE HAVE AN ONGOING INVESTIGATION AS TO WHAT THE COST 

IS, AND I HAVE TRIED TO LET YOUR HONOR KNOW, BUT I THINK 

THAT THE COMPUTER HARDWARE COULD BE LEASED AT A COST OF 

LESS THAN -- AGAIN IN THE HUNDREDS OF DOLLARS A MONTH, NOT 

MORE THAN THAT, AND I AM STILL TRYING TO PIN THAT DOWN, BUT 

THAT IS MY GOOD FAITH BELIEF, THAT IT WOULD PROBABLY BE IN 

THE HUNDREDS OR THOUSAND3 OF DOLLARS A MONTH FOR HIM TO



                                                      (15)


REVIEW THAT INFORMATION, AND IF IT IS DONE AT M.D.C. THEN 

THAT IS WHAT I AM PROPOSING THAT THE COURT ORDER.

     THAT IS A DIFFERENT SUBJECT MATTER THAN WITH RESPECT 

TO ACCESS TO THE INFORMATION BECAUSE AS THE COURT KNOWS, 

THE GOVERNMENT HAS REFUSED TO MAKE AVAILABLE TO COUNSEL 

ANYWHERE A PORTION OF THE COMPUTER DISCOVERY WHICH THE 

GOVERNMENT DEEMS IN THEIR OWN MIND THAT WE SHOULD NOT HAVE 

ACCESS TO.

     THAT INCLUDES TWO DIFFERENT TYPES OF DISCOVERY.

     THE FIRST IS WHAT THE GOVERNMENT CHARACTERIZES AS 

PROPRIETARY SOFTWARE AND THE GOVERNMENT WITHOUT SEEKING A 

PROTECTIVE ORDER FROM THIS COURT HAS SIMPLY DECIDED THAT 

EVEN THOUGH IT FALLS WITHIN RULE 16 EVIDENCE, ITEMS THAT 

THEY SEIZED AND THAT THEY INTEND TO USE SOME OR A PORTION 

OF, IF NOT ALL, AS EVIDENCE IN THIS CASE, NONETHELESS THEY 

HAVE ADVISED THE DEFENSE AND THIS COURT THAT THEY ARE NOT 

GOING TO TURN IT OVER.

     THE SECOND ITEM -- PIECE OF DISCOVERY WHICH FALLS IN 

THE CATEGORY OF DISCOVERY THAT HAS NOT BEEN TURNED OVER IS 

ENCRYPTED FILES.

     THE GOVERNMENT HAS DETERMINED THAT SOME OF THE FILES 

THAT THEY SEIZED ALLEGEDLY FROM MY CLIENT ARE ENCRYPTED. 

THEY DON'T KNOW THE PASS WORD IN ORDER TO DECRYPT THOSE 

FILES.

     THE COURT:   OF COURSE NOT.



                                                      (16)


     MR. RANDOLPH:   SO THE GOVERNMENT HAS UNILATERALLY

DECIDED THAT UNLESS MY CLIENT TELLS THEM WHAT THE PASS WORD

IS THAT THEY WILL NOT DISCLOSE THAT INFORMATION TO THE

DEFENSE.

     AGAIN I THINK THAT IT IS THE GOVERNMENT'S OBLIGATION 

TO COME TO THIS COURT AND SEEK A PROTECTIVE ORDER FROM 

DISCLOSING THAT INFORMATION TO THE DEFENSE. RATHER THAN DO 

THAT THE GOVERNMENT HAS DECIDED SIMPLY NOT TO DISCLOSE IT 

AND PUT US IN A POSITION OF REQUESTING ACCESS TO THE 

DISCOVERY, SO I KNOW THAT MR. SHERMAN HAS ASKED ACCESS TO 

ALL THE DISCOVERY.

     THE DEFENSE HAS ALSO REQUESTED ACCESS TO ALL THE 

DISCOVERY IN WRITING IN NOVEMBER OF 1996 INCLUDING ALL 

COMPUTER DISCOVERY THAT IS WITHHELD BY THE GOVERNMENT.

     I WOULD ASK OBVIOUSLY FOR THIS COURT TO ORDER THAT 

THEY GIVE US OUR COPY OF THE DISCOVERY DISKS -- ALL THE 

DISKS.

     MAY I JUST -- WHILE WE ARE ON THE SUBJECT MATTER, 

YOUR HONOR, MAY I SUGGEST THAT IT IS SIMPLY -- THERE IS NO 

LEGAL BASIS FOR THE GOVERNMENT TO WITHHOLD THE DISCOVERY IN 

THE TWO CATEGORIES THAT I HAVE JUST ADDRESSED.

     THE FIRST IS BECAUSE IT FALLS -- THE ONLY CASE THAT 

WE'VE FOUND THAT FAIRLY TRACKS THIS TYPE OF A SITUATION 

WHICH I WILL CONCEDE IS A UNIQUE ONE IS U.S. --

     THE COURT:   WHAT IS UNIQUE ABOUT IT?



                                                      (17)


     MR. RANDOLPH:   WELL, YOUR HONOR, THAT YOU HAVE

DISCOVERY THAT WAS SEIZED FROM THE CRIMINAL DEFENDANT, YET

THE GOVERNMENT IS REFUSING TO TURN OVER THE DISCOVERY TO

THE DEFENSE.

     THE COURT:   THERE IS NOTHING SO TERRIBLY UNIQUE 

ABOUT THAT.

     MR. RANDOLPH:   WELL --

     THE COURT:   IT IS A PROBLEM LIKE ALL OTHER KINDS OF

PROBLEMS.
     MR. RANDOLPH:   WELL I GUESS WHAT IS UNIQUE, YOUR

HONOR, IS BECAUSE THE GOVERNMENT CLAIMS IT TO BE

PROPRIETARY SOFTWARE, SIMPLY BY SAYING THAT WORD IT ALLOWS

-- AT LEAST IN THE GOVERNMENT'S MIND IT ALLOWS THEM TO

THEN WITHHOLD IT FROM DISCLOSURE TO THE DEFENSE.

     THIS ISSUE WAS ADDRESSED IN THE ONLY CASE THAT I AM 

AWARE OF, U.S. VERSUS HSU.  IT IS A DISTRICT COURT CASE IN 

PENNSYLVANIA WHICH I HAVE CITED IN OUT PLEADINGS BEFORE   

YOUR HONOR.

     IN THAT CASE -- THAT WAS A CASE BROUGHT UNDER THE 

ECONOMIC ESPIONAGE ACT IN WHICH THE GOVERNMENT CLAIMED I 

WOULD THINK IN A DIRECT ANALOGY THAT TRADE SECRET 

INFORMATION HAD BEEN COMPROMISED BY THE DEFENDANT IN THAT 

CASE, AND IN RESPONSE THERETO THE COURT FOUND THAT THE 

GOVERNMENT COULD NOT WITHHOLD THE DISCOVERY IN THE CASE 

SIMPLY BECAUSE THE GOVERNMENT CLAIMED THAT IT WAS TRADE



                                                      (18)


SECRET INFORMATION.

     NUMBER ONE, THE GOVERNMENT HAD ALLEGED THAT THE 

DEFENDANT HAD STOLEN TRADE SECRET ITEMS AND THAT IT WAS 

WORTH A CERTAIN DOLLAR VALUE AND THAT THE DEFENDANT, 

THEREFORE, HAD A RIGHT TO SEE WHAT THE EVIDENCE WAS AND TO 

BE ABLE TO CONFRONT IT AND DEFEND HIMSELF.

     I THINK THE SAME IS TRUE HERE.

     IN THE INDICTMENT, YOUR HONOR, THE GOVERNMENT HAS 

ALLEGED THAT THE DEFENDANT HAD COMPROMISED PROPRIETARY 

SOFTWARE, THAT THIS SOFTWARE HAS A VALUE OF MILLIONS OF 

DOLLARS.

     IN COUNT 15, I BELIEVE, IF MEMORY SERVES, THEY 

SPECIFICALLY ALLEGE A DOLLAR VALUE -- A MINIMUM DOLLAR 

VALUE OF SOME OF THE INFORMATION SEIZED AND YET THEY DON'T 

WANT TO ALLOW THE DEFENDANT TO HAVE ACCESS TO THAT 

INFORMATION, AND WHEN I SAY THE DEFENDANT I MEAN THE 

DEFENSE, THE DEFENSE EXPERTS, WE CANNOT HAVE ACCESS TO 

THAT, YOUR HONOR.

     THE COURT:   WELL, YOU ARE NOT -- LET'S SEE WHAT THEY 

SAY.

     MR. RANDOLPH:   ALL RIGHT. I WAS GOING TO ADDRESS

THE MOTION RE BILL OF PARTICULARS FIRST IF I MAY TAKE A

MINUTE AND DO THAT.

     THE COURT:   I AM NOT GOING TO GRANT THAT MOTION.

     MR. RANDOLPH:   MAY I JUST BRING ONE IMPORTANT POINT



                                                      (19)


TO THE COURT'S ATTENTION AND THEN I WILL SUBMIT IT ON THE 

PAPERS.

     THE LAW IS OBVIOUSLY VERY CLEAR THAT ONE OF THE 

REASONS WHY THE DEFENSE WOULD FILE SUCH A MOTION IS WHERE 

THERE ARE DOUBLE JEOPARDY CONCERNS.

     THE GOVERNMENT IN ITS PLEADINGS HAS ADVISED THE 

COURT THAT CERTAINLY IN A CASE LIKE THIS EVEN THOUGH MY 

CLIENT CAME INTO THIS COURT FACING SENTENCING IN THE NORTH 

CAROLINA CASE, THAT THERE WAS SIMPLY NO OVERLAP WITH THE 

NORTH CAROLINA CASE AND THE INSTANT CASE.

     THEY ARGUED THAT, YOUR HONOR, AT PAGE 9, FOOTNOTE 3 

OF THEIR OPPOSITION TO OUR MOTION FOR BILL OF PARTICULARS.

     THAT INFORMATION IS WRONG, AND I THINK IT IS 

IMPORTANT THAT THE COURT BE ADVISED OF THAT.
     IN THE P.S.R. IN THE NORTH CAROLINA CASE WHICH WE'VE 

ALREADY HAD SENTENCING ON, IT MAKES DIRECT REFERENCE TO MY 

CLIENT'S ALLEGED HACKING INTO THE NET-COM ONLINE SERVER.

     SECONDARILY, YOUR HONOR, AND SOMETHING THAT THE 

GOVERNMENT OBVIOUSLY DIDN'T POINT OUT AND THE COURT WOULD 

NOT BE AWARE OF, IN THEIR APPELLATE BRIEF IN THE APPEAL 

FROM THE PRIOR SENTENCING FROM THE NORTH CAROLINA CASE THE 

GOVERNMENT ARGUES AGAIN TO THE APPELLATE COURT THAT MY 

CLIENT WAS INVOLVED IN A BREAK-IN TO THE NETCOM SERVER AND 

IHAT THAT WAS PART OF THE REASON WHY FOR THE TYPES OF 

CONDITIONS THAT THIS COURT PUT ON.



                                                      (20)


     THE GOVERNMENT AS I JUST INDICATED TO THE COURT SAYS 

THERE IS NO OVERLAP BETWEEN THE NORTH CAROLINA CASE, FOR 

EXAMPLE, AND THE INSTANT CASE, YOUR HONOR, YET IF THE COURT 

WILL VIEW THE INDICTMENT IN THIS CASE AND SPECIFICALLY -- 

MAY I HAVE ONE MOMENT, PLEASE -- I CAN REMEMBER, YOUR 

HONOR, EVEN THOUGH I CAN'T PUT MY HANDS ON THE INDICTMENT 

RIGHT NOW -- IN THE LIST OF VICTIMS IN THE INDICTMENT THE 

GOVERNMENT LISTS NETCOM AS ONE OF THE VICTIMS THAT MY 

CLIENT ALLEGEDLY HAD DURING THE PERIOD IN QUESTION.

     THE PERIOD IN QUESTION INCLUDES FEBRUARY OF 1995 IN 

BOTH CASES SO HAVE A DIRECT EXAMPLE OF WHERE THE GOVERNMENT 

HAS -- WHERE MY CLIENT IS FACING CONCERNS OF DOUBLE 

JEOPARDY BOTH EITHER IN SENTENCING OR IN PROSECUTION 

INVOLVING THE SAME VICTIM, THE SAME SERIES OF EVENTS, AND 

IT IS THAT -- THAT IS PRECISELY THE TYPE OF DAMAGE THAT THE 

DEFENSE -- THAT RAISES A RED FLAG TO INDICATE TO THE 

DEFENSE THAT WE HAVE TO MOVE AND PURSUE A BILL OF 

PARTICULARS.

     I HAVE A SITUATION WHERE MY CLIENT EITHER HAS

INVESTIGATIONS OR PENDING CHARGES IN OTHER JURISDICTIONS

THROUGHOUT THE UNITED STATES, AND ON HIS BEHALF I AM VERY

CONCERNED THAT UNLESS WE HAVE SPECIFICITY WITH RESPECT TO

WHO, WHAT, WHEN, WHERE AND WHY FROM THE GOVERNMENT MORE

TEIAN IS IN THE INDICTMENT, THAT WE WILL AGAIN BE PUT IN A

POSITION WHERE HE IS NOT PROTECTED FROM DOUBLE JEOPARDY



                                                      (21)


CONCERNS, SO HAVING SAID THAT, YOUR HONOR, I WILL SUBMIT 

THE MOTION ON THE BILL OF PARTICULARS AND ASK THE COURT TO 

TAKE THAT UNDER SUBMISSION.

     I BELIEVE IN ADDRESSING THE COURT'S REQUEST WITH 

RESPECT TO EXACTLY WHAT IT IS THE DEFENSE IS ASKING FOR 

WITH RESPECT TO THE COMPUTER --

     THE COURT:   I THOUGHT YOU JUST TOLD ME.

     MR. RANDOLPH:   I WAS ABOUT TO SAY I THINK I HAVE

ADDRESSED THAT MOTION, YOUR HONOR, SO I AM PREPARED TO

SUBMIT THAT TO THE COURT.

     I WOULD ASK THE COURT IN DETERMINING THAT MOTION TO 

TAKE INTO CONSIDERATION THE DECLARATION OF ROBERT FRANCE 

WHICH WAS SUBMITTED TO THE COURT. IT IS SUBMITTED FOR MORE 

THAN ONE MOTION, BUT THE PORTION OF HIS DECLARATION WHICH I 

THINK IS RELEVANT ADDRESSES THE ISSUE OF ANY SECURITY 

CONCERNS WITH RESPECT TO A COMPUTER THAT DOESN'T HAVE A 

MODUM OR A NETWORK CARD.
     YOUR HONOR, MY CLIENT HAS REQUESTED SUPPLEMENTAL LAW 

LIBRARY TIME, AND THIS IS -- I GUESS THIS CASE -- THE COURT 

OFTEN ASKS ME WHAT MAKES THIS CASE UNIQUE, AND I THINK ONE 

OF THE POINTS IS NOT NECESSARILY THE REQUEST BY THE DEFENSE 

BUT THE OPPOSITION BY THE GOVERNMENT.

     IN THIS CASE ORDINARILY, YOUR HONOR, MY EXPERIENCE 

IF SOMEONE REQUESTED -- THE DEFENDANT REQUESTED 

SUPPLEMENTAL LAW LIBRARY TIME THEY SUBMIT A 2 PAGE MOTION



                                                      (22)


TO THE COURT, THE COURT LOOKS AT IT AND EITHER GRANTS IT OR 

DENIES IT.

     IN THIS CASE WE GET WRITTEN OPPOSITION FROM THE 

GOVERNMENT TO MY CLIENT'S ACCESS TO SUPPLEMENTAL LAW 

LIBRARY TIME.

     IT DOES MAKE THIS CASE UNIQUE.

     THE SAME IS TRUE, YOUR HONOR, WITH RESPECT TO MY 

CLIENT'S ACCESS TO A COMPUTER AT THE METROPOLITAN DETENTION 

CENTER.

     WE HAVE A MULTIPAGE OPPOSITION FROM THE GOVERNMENT.

     THE COURT:   I DON'T BLAME THEM.

     MR. RANDOLPH:   WELL, I AM JUST SUGGESTING, YOUR

HONOR, THAT THE MOTIVE OF THE GOVERNMENT -- I GUESS THE

QUESTION IS WHAT IS THE MOTIVE OF THE GOVERNMENT TO

PRECLUDE MY CLIENT, FOR EXAMPLE, FROM GETTING ACCESS TO

SUPPLEMENTAL LAW LIBRARY TIME?

     WHY WOULD THE GOVERNMENT BE INTERESTED ONE WAY OR 

THE OTHER? IT SHOULD BE BETWEEN THE COURT, THE DEFENSE AND 

IF THE METROPOLITAN DETENTION CENTER WANTS TO WEIGH IN, 

THAT IS FINE, AND I THINK I HAVE TRIED TO INCLUDE ALL OF 

THE CORRESPONDENCE BETWEEN MY OFFICE AND THE M.D.C. ON THIS 

ISSUE SO THE COURT CAN SEE THE DIFFERENT POSITIONS.

     I WOULD SIMPLY SUGGEST, YOUR HONOR, THAT HOPEFULLY 

IN OUR REPLY PARTICULARLY WE HAVE ADDRESSED THE FACT THAT 

IN ITS OPPOSITION THE GOVERNMENT RAISES THE POINT THAT



                                                      (23)


THEIR RESOURCES AND SPACE IS LIMITED.

     HOPEFULLY WE HAVE ADDRESSED THAT BY SUBMITTING TO 

THE COURT THAT THERE ARE 35 TO 40 SPACES AVAILABLE AT THE 

M.D.C. AND THAT THE SUPPLEMENTAL LAW LIBRARY TIME IS 

UTILIZED ON FRIDAYS AND SATURDAYS, FIVE HOURS EACH, BY 

ABOUT 10 INMATES, AND THAT IS OVER THE LAST YEAR ON 

THE AVERAGE, SO THEREFORE, MR. MITNICK WOULD NOT IN ANY WAY, 

SHAPE OR FORM IMPINGE ON THE RESOURCES TO OTHER INMATES BY 

BEING ONE OF THE TEN OR ELEVEN INMATES THAT GOES THERE ON 

THE WEEKENDS.

     THE SECOND POINT THAT WE TRIED TO ADDRESS, YOUR 

HONOR, IS WHERE THE GOVERNMENT HAS CHARACTERIZED THE LAW 

LIBRARY TIME AS A PRIVILEGE. IT IS NOT. IT IS A RIGHT, 

ALBEIT, OF COURSE, TO BE DETERMINED UNDER REASONABLE 

GUIDELINES, BUT WE HAVE SUGGESTED, YOUR HONOR, THAT BECAUSE 

OF THE WAY THAT THE M.D.C. HAS INTERPRETED THE SUPPLEMENTAL 

LAW LIBRARY TIME, IT DOESN'T ALLOW AN INMATE TO EVEN GET 

THROUGH THEIR ADMINISTRATIVE PROCEEDINGS, GET ACCESS TO THE 

LAW LIBRARY UNLESS HE IS WITHIN 20 DAYS OF THE MOTION DATE. 

ALTHOUGH THEY SAY TRIAL, I BELIEVE IN GOOD FAITH THAT THEY 

PROBABLY INTERPRET THAT AS A MOTION DATE AS WELL.

     AS THE COURT KNOWS, MOTIONS HAVE TO BE FILED IN 

EXCESS OF 20 DAYS BEFORE THE HEARING OR THE TRIAL. 

THEREFORE, IT PRECLUDES A DEFENDANT FROM PARTICIPATING IN 

THE PROCESS OF ASSISTING IN PUTTING THE PAPERS TOGETHER.



                                                      (24)


     FINALLY, THE GOVERNMENT HAS SAID IN A -- I THINK IN

A STATEMENT THAT OBVIOUSLY HAS NO KNOWLEDGE OR BASIS

WHATSOEVER THAT THE DEFENSE DOESN'T -- THAT THERE IS

NOTHING ABOUT MR. MITNICK'S ASSISTANCE WHICH WOULD ASSIST

IN THE DEFENSE, THAT WE ARE PERFECTLY COMPETENT TO PREPARE

THESE PAPERS, AND THE ANSWER IS YES. MY STAFF IS QUALIFIED,

YOUR HONOR, TO PUT MOTIONS TOGETHER BUT WOULD WE BE

ASSISTED BY MR. MITNICK WHO IS ABLE TO GO INTO THE LAW

LIBRARY AND READ CASES AND DO ANALOGIES FROM OTHER TYPES OF

LAW AND ASSISTING IN THE DISCUSSION AND PARTICIPATING IN

HIS OWN DEFENSE AS WE BRING ANALOGOUS CASES TO BEAR ON THE

ISSUE OF COMPUTER ACCESS AND WHAT I THINK ARE SOME UNIQUE

ISSUES IN THE AMOUNT IN THIS CASE -- THIS ANSWER IS YES, HE

IS ABLE TO DO THAT, AND IT DOES ASSIST COUNSEL, BOTH NOT

ONLY FOR -- IN ACTUALLY THE PREPARATION OF THE CASES, YOUR

HONOR, BUT IT ASSISTS IN THE SMOOTH REPRESENTATION OF MY

CLIENT AND IN THE -- JUST IN THE RAPPORT BETWEEN COUNSEL

AND DEFENDANT IF THE DEFENDANT FEELS -- AND IN THIS CASE

OBVIOUSLY I AM TALKING ABOUT MR. MITNICK -- IF HE FEELS HE

IS PARTICIPATING IN HIS DEFENSE, AND YES, IT DOES SAVE

MONEY BECAUSE IN ORDER TO BE ABLE -- IF HE IS UNABLE TO

HAVE ACCESS TO THE LAW LIBRARY IN ORDER FOR ME TO HELP HIM

PARTICIPATE IN THE DEFENSE, IT REQUIRES MY OFFICE TO BE

DOING -- ACTUALLY READING CASES FOR HIM OR BRINGING CASES

AND GO OVER THEM WHILE I MEET WITH HIM AT M.D.C., AND IT



                                                      (25)


WOULD SAVE TIME AND MONEY AND ENHANCE THE DEFENSE IF HE WAS 

GRANTED THAT LAW LIBRARY REQUEST.
     THE FINAL MOTION THAT I THINK IS BEFORE THE COURT, 

YOUR HONOR, IS THE MOTION TO CONTINUE THE CASE, AND I WILL 

CONCEDE UP FRONT THAT AT OUR LAST HEARING, YOUR HONOR, I 

TOLD THE COURT I WOULD ADVISE THE COURT BEFORE THE END OF 

THE YEAR, THAT BEING LAST YEAR, WHETHER I WAS ABLE TO GET 

ACCESS -- WHETHER THE GOVERNMENT AND I WERE ABLE TO GET 

ACCESS AND COME TO A MEETING OF THE MINDS WHEREIN MY CLIENT 

AND I WOULD BE ABLE TO ACCESS THE COMPUTER DISCOVERY, AND I 

CONCEDE, YOUR HONOR, AND I AM SORRY THAT I DIDN'T MAKE THE 

DEADLINE BY THE END OF THE YEAR --

     THE COURT:   YOU WON'T MAKE IT BY THE END OF THIS

YEAR, EITHER.

     MR. RANDOLPH:   WELL, I AM CONCERNED ABOUT THAT,

YOUR HONOR, AND I AM HOPEFUL THAT THE COURT'S RULINGS ON

COMPUTER ACCESS WILL OBVIATE THAT.

     THE COURT:   OH, I CAN ASSURE YOU THAT THE COURT IS

GOING TO MAKE SOME RULINGS THAT WILL CAUSE THE MATTER TO GO

TO TRIAL.

     MR. RANDOLPH:   I APPRECIATE THAT, YOUR HONOR.

     THE COURT:   YOU HAVE MY WORD ON IT.

     MR. RANDOLPH:   WE DID FILE IN JANUARY AN EX PARTE

APPLICATION WHICH WAS THEN TURNED INTO A MOTION TO CONTINUE

THE TRIAL DATE.



                                                      (26)


     THE GOVERNMENT -- WE WERE UNABLE TO STIPULATE TO THE 

CONTINUANCE BECAUSE THE GOVERNMENT AS A REQUIREMENT OF THE 

STIPULATION WANTED COUNSEL TO AGREE THAT NO FURTHER 

EXTENSION WOULD BE REQUESTED IN ORDER TO ACCESS THE 

DISCOVERY.

     SINCE THE MOTION FOR COMPUTER ACCESS BY BOTH THE 

DEFENSE AND THE DEFENDANT STILL NEEDS TO BE RESOLVED BY 

THIS COURT, I FELT CONSTRAINED TO BE ABLE TO ENTER INTO 

THAT KIND OF A STIPULATION EVEN THOUGH I WOULD VERY MUCH 

LIKE -- AND I KNOW MY CLIENT WOULD LIKE THIS MATTER TO COME 

TO TRIAL IN A TIMELY FASHION.
     ON THE OTHER HAND, HE DOES NOT WANT TO GO TO TRIAL 

WITHOUT HAVING HAD HIS COUNSEL HAVE ACCESS TO THAT 

DISCOVERY, SO THE ISSUE IS BEFORE YOUR HONOR. I AM 

CONCERNED ABOUT -- DEPENDING UPON THE COURT'S RULINGS -- 

BEING ABLE TO ACCESS AND DIGEST THE COMPUTER INFORMATION 

BETWEEN NOW AND SEPTEMBER.

     THE COURT:   DO I UNDERSTAND FROM WHAT YOU HAVE JUST 

SAID, LENGTHY THOUGH IT WAS, THAT YOU DON'T UNDERSTAND 

ANYTHING ABOUT THIS CASE?

     MR. RANDOLPH:   I UNDERSTAND WHAT THE GOVERNMENT'S

THEORY OF THE CASE IS. WHAT I DON'T KNOW IS WHAT THE

EVIDENCE IS THAT SUPPORTS THAT THEORY.
     THE GOVERNMENT HAS SAID REPEATEDLY TO THIS COURT 

THAT "WELL, WE HAVE MADE LIBERAL DISCOVERY, IT IS ALL HERE



                                                      (27)


IN THE COMPUTER DOCUMENTS," AND I ASKED THE COURT TO TAKE 

A MINUTE AND LOOK AT OUR REPLY TO THE COMPUTER MOTION.

     THE COURT:   TAKE A MINUTE? TAKE A MINUTE TO LOOK

AT THE REPLY?

     MR. RANDOLPH:   NO, I'M SORRY, JUST ONE EXHIBIT,

YOUR HONOR.

     THE COURT:   I HAVE SPENT HOURS AND HOURS ON THIS 

CASE, HOURS AND HOURS AND HOURS.

     MR. RANDOLPH:   I WASN'T GOING TO TALK ABOUT -- I AM

SORRY, YOUR HONOR. I WAS REFERRING TO AN EXHIBIT,

EXHIBIT A TO THE REPLY MOTION WHICH LISTS -- PARTIALLY

LISTS WHAT THE GOVERNMENT IS REFERRING TO IN THE COMPUTER

EVIDENCE.

     IT IS HUNDREDS UPON HUNDREDS OF FILES WITH NO 

DESCRIPTION WHATSOEVER.

     THE GOVERNMENT HAS SAID TO CO-COUNSEL -- THEIR AGENT 

HAS SAID THAT, NUMBER ONE, SOMEONE IN THE GOVERNMENT HAS 

REVIEWED ALL THE COMPUTER EVIDENCE, AND NUMBER 2, THAT 

THERE ARE NO NOTES OR SUMMARIES OF THAT EVIDENCE.

     IT IS ALMOST HARD TO BELIEVE THAT BOTH OF THOSE 

THINGS ARE SO, YOUR HONOR.

     IT IS HARD TO BELIEVE THAT THE GOVERNMENT HAD

SOMEONE REVIEW ALL THE EVIDENCE AND DID NOT MAKE A SINGLE

NOTE OR A SUMMARY OF ANY OF THAT COMPUTER EVIDENCE. IT

DEFIES BELIEF, AND I WOULD SUGGEST, YOUR HONOR, THAT ANY



                                                      (28)


ORDER THAT THE COURT MAKES TO GET THIS CASE TO TRIAL -- I

JOIN IN WHAT MR. SHERMAN HAS SAID, THAT THE GOVERNMENT

SHOULD DESIGNATE WHAT ITEMS OF EVIDENCE IN THE COMPUTER

EVIDENCE THEY PLAN TO USE AS THEIR EXHIBITS IN THIS CASE,

AND SECONDLY, IF THEY HAVE A SUMMARY OF THE EVIDENCE I

REQUEST THE COURT PLEASE ORDER THE GOVERNMENT TO TURN OVER

THAT SUMMARY TO THE DEFENSE SO AT LEAST WE HAVE SOME KIND

OF IDEA OF WHERE IN THE -- I THINK IT IS BETWEEN 2.5 AND 5

MILLION DOCUMENTS WE CAN DETERMINE --

     THE COURT:   THERE ARE LOTS OF CRIMINAL CASES AND

CERTAINLY HUNDREDS OF CIVIL CASES THAT HAVE MILLIONS OF

DOCUMENTS. THERE IS NOTHING UNUSUAL ABOUT THAT.

WE HAVE CRIMINAL CASES LIKE THAT ALL THE TIME.

     MR. RANDOLPH:   I HAVE ACTUALLY BEEN IN THE COURT

DURING THE KEATING CASE, YOUR HONOR, IN WHICH I RECALL

SEEING MILLIONS UPON MILLIONS OF DOCUMENTS IN THAT CASE.

     THE COURT:   THERE IS NOTHING UNUSUAL ABOUT THAT.

     MR. RANDOLPH:   BUT WHAT IS UNUSUAL, YOUR HONOR, IS

IN THAT CASE WE HAD HUNDREDS OF PAGES OF LISTS OF WHAT THE

GOVERNMENT'S EVIDENCE WAS INTENDED TO BE ALONG WITH

SUMMARIES. IT WAS ALL ON HARD COPY. I WAS ABLE TO GO TO

CO-COUNSEL'S OFFICE IN CHICAGO AND GO THROUGH FILES AND

THEY HAD EVERYTHING FILED AND CATEGORIZED. IT HAD BEEN

DISCLOSED BY THE GOVERNMENT TO THE DEFENSE, AND ALTHOUGH IT

WAS A LENGTHY AND TEDIOUS PROCEDURE, IT WAS CAPABLE OF



                                                      (29)


BEING DONE.

     THE DOCUMENTS IN THIS CASE ACTUALLY DWARF THE NUMBER 

OF DOCUMENTS IN THAT CASE NOT ONLY IN SHEER VOLUME BUT 

BECAUSE THERE IS NO ACCESS WHATSOEVER OTHER THAN THESE 

INCOMPREHENSIBLE FILE NAME FOLDERS THAT THE GOVERNMENT HAS 

GIVEN TO US, SO PUTTING ASIDE THE FACT THAT THE DEFENSE AND 

BOTH OF MY CLIENTS AND AN EXPERT NEED ACCESS TO THE 

DOCUMENTS, PUTTING THAT ASIDE, ONCE WE GET THAT ACCESS, 

YOUR HONOR, IT WILL STILL TAKE, I WOULD SAY, AN INORDINATE 

AMOUNT OF TIME UNLESS THIS COURT ORDERS THE GOVERNMENT TO 

DEFINE AND DESCRIBE TO THE DEFENSE WHICH OF THESE MILLIONS 

OF EXHIBITS THEY PLAN TO USE IN THE TRIAL.

     THE COURT:   IS THAT ALL?

     MR. RANDOLPH:   THAT'S IT, YOUR HONOR, THANK YOU.

     MR. PAINTER:   YOUR HONOR, BEFORE I BEGIN LET ME

JUST CLEAR UP ONE GLARING MISCONCEPTION THAT MR. RANDOLPH

HAS, AND THAT IS, WITH RESPECT TO THE SOURCE CODE IN THIS

CASE, THE PROPRIETARY SOFTWARE AS HE CALLS IT, WE HAVE FROM

DAY ONE SAID THAT IS AVAILABLE FOR YOUR REVIEW. YOU MAY

LOOK AT THAT MATERIAL. INDEED, YOU SHOULD LOOK AT THAT

MATERIAL.

     HOWEVER, WHAT WE HAVE SAID AND WE HAVE SAID THIS TO

THE COURT AS WELL IS THAT WE WERE UNWILLING TO MAKE A COPY

OF THAT MATERIAL, JUST LIKE A TRADE SECRET -- JUST LIKE A

HOLLYWOOD SCRIPT GETS STOLEN -



                                                      (30)


     THE COURT:   I DON'T KNOW HOW MANY TIMES WE HAVE TO

GO OVER THAT POINT.

     THAT HAPPENS. THAT IS EXACTLY THE STATE OF THE RECORD.

     MR. PAINTER:   FINE, YOUR HONOR. THAT WAS ONE THING

I WANTED TO CLEAR UP BECAUSE I GOT THE IMPRESSION THAT MR.

RANDOLPH WAS SAYING WE WERE DENYING HIM ANY ACCESS TO THAT.

THAT IS JUST NOT TRUE.

     THE SECOND POINT, YOUR HONOR, JUST AS BRIEFLY, HE 

REFERS TO THIS FILE LIST, AND I WILL GET TO THIS MORE IN A 

MINUTE, IT IS INCOMPREHENSIBLE.

     I BELIEVE THAT FILE LIST IS INDEED A FILE LIST OF 

THE FILES CONTAINED IN MR. MITNICK'S COMPUTER IN SEATTLE 

AND RALEIGH. HE IS THE ONE WHO PUT THOSE FILES THERE. THEY 

ARE NAMES THAT HE GAVE THOSE FILES.

     THE COURT:   I KNOW THAT.

     MR. PAINTER:   I THINK JUST AS A GENERAL -- IT IS

HELPFUL, I THINK,  IN THIS CASE TO JUST EXPLAIN A LITTLE BIT

OF THE CHRONOLOGY BECAUSE WHAT IS FRUSTRATING TO THE

GOVERNMENT, YOUR HONOR, IS THAT FROM DAY ONE -- FROM THE

TIME THIS CASE WAS INDICTED, WE HAVE TOLD THE DEFENSE "THE

ELECTRONIC EVIDENCE IS HERE. PLEASE COME AND LOOK AT IT."

WE HAVE TOLD THEM AGAIN AND AGAIN AND AGAIN.

     THE COURT:   I KNOW THAT.

     MR. SCHINDLER:   THERE WAS ONE TIME WHEN MR.





                                                      (31)

RANDOLPH ON THE EVE OF THE NORTH CAROLINA SENTENCING -- 

WHEN HE TRIED TO DELAY THAT SENTENCING BECAUSE HE WANTED TO 

LOOK AT THAT EVIDENCE THAT HE SENT A REPRESENTATIVE FROM 

HIS OFFICE TO LOOK AT IT FOR A COUPLE OF HOURS.

     THERE WAS A TIME IN JANUARY WHEN MR. DEPAYNE AND HIS 

ATTORNEY CAME FOR A COUPLE OF HOURS.

     THEY COMPLAINED ABOUT CERTAIN THINGS THEY COULDN'T 

SEE AND CERTAIN TOOLS THEY DIDN'T HAVE BUT SPECIAL AGENT 

MCQUIRE SAID, "CONTACT MR. SCHINDLER AND MR. PAINTER AND HE 

CAN MAKE ARRANGEMENTS."

     THERE WAS NO CONTACT, NOTHING.

     I MADE THIS EVIDENCE AVAILABLE. THE EVIDENCE IS NOT 

AS VAST AS IS BEING REPRESENTED AND NUMBERS BEING BANDIED 

AROUND. I WANT TO TALK ABOUT THAT A LITTLE BIT, TOO, BUT WE 

HAVE MADE IT AVAILABLE AGAIN AND AGAIN, AND MR. RANDOLPH IN 

THE OCTOBER 8TH HEARING BEFORE YOUR HONOR WHEN WE SET THE 

TRIAL DATE SAID IT WAS INCUMBENT ON HIM NOW TO TAKE A LOOK 

AT IT.

     THERE WAS NO CONTACT AND NO REQUEST TO SEE THAT 

EVIDENCE SINCE THAT JUNE OF '97 DATE. IT JUST HASN'T 

HAPPENED AND FOR THE DEFENSE TO COME IN NOW AND SAY, "WE 

NEED THE COURT TO ORDER ALL OF THESE THINGS BECAUSE THE 

GOVERNMENT IS NOT BEING FORTHCOMING," THAT IS JUST NOT 

FAIR. WE HAVE BEEN FORTHCOMING. IF THEY TOOK THE TROUBLE TO 

COME AND LOOK AT THIS EVIDENCE, IN FACT, THEY WOULD SEE




                                                      (32)

THAT.

     ONE, LET ME FOR THE COURT BREAK DOWN WHAT THIS 

EVIDENCE IS TO GIVE THE COURT A BETTER CONCEPT BECAUSE I 

THINK WHAT I HAVE HEARD CONSTANTLY IS SOME TENS OF MILLIONS 

OF PAGES BEING BANDIED ABOUT, AND I WANT TO BE A LITTLE 

MORE PRECISE ON WHAT THAT REALLY MEANS.

     IN THIS CASE -
     THE COURT:   YOU ARE MAKING THE RECORD, SO YOU MAKE

IT.

     MR. PAINTER:   IN THIS CASE, YOUR HONOR, THERE IS 70

-- I WOULD SAY 70 TO 80 PERCENT OF THE EVIDENCE THAT IS IN

ELECTRONIC FORM. IT IS TWO TYPES. ONE IS APPLICATION

SOFTWARE. IT IS WORD PERFECT. IT IS THE AVAILABLE SOFTWARE

THAT HAS NO MEANING OR RELEVANCE TO THIS CASE AT ALL.

     THE OTHER SIGNIFICANT BLOCK OF THAT 70 TO 80 PERCENT 

IS THIS PROPRIETARY SOURCE CODE, THE STUFF THAT WAS STOLEN, 

THE STUFF THAT HAD INJURED THE VICTIMS IN THIS CASE.

     NOW THAT APPEARS AND THE FILES ARE VERY LARGE. THEY 

APPEAR A NUMBER OF TIMES BECAUSE MR. MITNICK AND MR. 

DEPAYNE HELPED TRANSFER THOSE FILES FIRST FROM THE VICTIM 

TO THE INTERMEDIATE STORAGE SITE, TO THE UNIVERSITY AND 

FINALLY TO MR. MITNICK'S COMPUTER SO THE SAME FILES APPEAR 

AGAIN AND AGAIN.

     THE RELEVANT THING ABOUT ALL OF THAT IS IDENTIFYING 

THE FILE AS A FILE, THAT IT IS WHAT IT IS, THAT IT IS




                                                      (33)

STOLEN SOFTWARE. YOU COULD PRINT THE FILE OUT AND IT WOULD 

BE THOUSANDS OF PAGES BUT THE ONLY RELEVANT THING IS THE 

SOURCE CODE, DOES IT APPEAR AGAIN AND AGAIN.

     THAT DOESN'T TAKE THAT MUCH EFFORT TO DETERMINE.

     THERE IS ALSO ENCRYPTED FILES AS COUNSEL HAS STATED, 

AND THE GOVERNMENT'S POSITION IS IT WOULD BE IRRESPONSIBLE 

FOR US TO RELEASE. WE DON'T HAVE ACCESS TO WHAT IS IN THOSE 

FILES. WE DON'T KNOW WHAT IS IN THERE. IT COULD BE 

CONTRABAND. IT COULD BE CREDIT CARD NUMBERS. IT COULD BE 

STOLEN SOFTWARE. IT COULD BE FINANCIAL.

     THE COURT:   AND UNDOUBTEDLY YOU ARE NOT GOING TO FIND OUT.

     MR. PAINTER:   WE HAVE NOT FOUND OUT TO THIS POINT

AND UNTIL WE FIND OUT, WE CAN'T JUST SIMPLY RELEASE THAT

INFORMATION.

     THIS MAY BE A UNIQUE CASE WITH THE ANALOGY, I 

SUPPOSE, THAT IT IS A SAFE THAT HAS STUFF LOCKED IN IT.

     USUALLY YOU CAN BUST OPEN A SAFE. WE DON'T KNOW 

WHAT IS IN THE FILES, AND WE CAN'T RELEASE THEM WITHOUT 

KNOWING THAT.

     THE COURT:   ARE YOU GOING TO USE THEM?

     MR. PAINTER:   NO, YOUR HONOR.

     THE COURT:   YOU CAN'T USE THEM.

     MR. PAINTER:   NO. NEITHER CAN WE USE THEM NOR WILL

WE USE THEM IN OUR CASE. WE ARE NOT USING THOSE AS






                                                      (34)

EVIDENCE. WE DON'T KNOW WHAT IS IN THOSE FILES. IF A FILE 

HAS A NAME THAT IS SIMILAR TO ANOTHER NAME THAT WAS 

TRANSFERRED, THAT FACT MIGHT BE USED BUT REALLY NOTHING 

MORE THAN THAT AND THAT IS NOT ANYTHING MORE THAN THEY CAN 

FIND OUT IF THEY EXERCISED EVEN A LITTLE DILIGENCE TO LOOK 

IN THESE FILES.

     MR. DEPAYNE POINTED OUT THAT THERE WAS -- EVEN JUST 

A HAPPENSTANCE, HE RAN ACROSS A FILE HE THOUGHT WAS 

EXCULPATORY - WE DON'T THINK IT IS BUT IT IS NOT OUR 

DETERMINATION TO MAKE - NONETHELESS THAT FILE WAS A FILE 

CALLED LEWIS1 -- LEWIS.1 WHICH WAS ON THE DIRECTORY LISTING 

FOR MR. MITNICK'S COMPUTERS. IT WAS A FILE MAINTAINED BY MR. 

MITNICK.

     IT WAS CORRESPONDENCE INVOLVING MR. DEPAYNE.

     LEWIS IS MR. DEPAYNE'S SCREEN NAME, HIS COMPUTER 

NAME. ANY EXERCISE OF ACTUALLY LOOKING AT THE EVIDENCE 

GIVEN BY THE GOVERNMENT TO THE DEFENDANTS WOULD HAVE 

REVEALED THAT IF I WERE A DEFENDANT AND I SAW MY SCREEN 

NAME AS ONE OF THE FILES I WOULD WANT TO LOOK AT THAT FILE, 

AND THEY EASILY COULD HAVE.

     MR. RANDOLPH CLAIMS THERE ARE 10S OF MILLIONS OF 

DOCUMENTS AND IT WILL TAKE THEM FOREVER TO GO THROUGH THIS. 

INDEED, HE CLAIMS IT IS WORSE THAN A SAVINGS AND LOAN CASE.

     WELL, YOUR HONOR, THE WAY IT IS EASIER THAN A

SAVINGS AND LOAN CASE, SEARCH TOOLS CAN BE USED TO SEARCH




                                                      (35)

THROUGH COMPUTER EVIDENCE.
     THE COURT:   THEY WANT TO KNOW WHAT YOU ARE GOING TO

USE.

     MR. PAINTER:   YOUR HONOR, WE DO NOT KNOW PRECISELY

WHAT WE ARE GOING TO BE USING AT THIS POINT.

     THE COURT:   WELL, YOU BETTER START FIGURING IT OUT.

     MR. PAINTER:   AND WE WILL, YOUR HONOR, BUT YOU KNOW

IN ANY CASE THERE IS EVIDENCE THERE.

     WE CAN TELL THEM THE CATEGORIES OF EVIDENCE THAT ARE 

THERE, THE CATEGORIES BEING THE SOURCE CODE, THE LOG-IN 

PROGRAMS, THE STOLEN E-MAILS AND THE OTHER THINGS THAT ARE 

THERE. IT IS INCUMBENT ON US TO MAKE SOME -
     THE COURT:   IT IS NOT UNREASONABLE AT ALL FOR MR. 

SHERMAN TO SAY TO YOU, "WE WOULD LIKE A TENTATIVE EXHIBIT 

LIST." THAT IS NOT UNREASONABLE.

     MR. PAINTER:   WELL, YOUR HONOR, AT THIS POINT IN

TIME ESPECIALLY GIVEN THAT THIS IS SIGNIFICANTLY PRIOR TO

TRIAL AND THAT MR. SHERMAN AND MR. RANDOLPH HAVE MADE NO

ATTEMPT TO LOOK AT ANY OF THIS STUFF SO FAR, I THINK IT IS

UNREASONABLE AT THIS POINT IN TIME.

     THE COURT:   IT IS NOT UNREASONABLE FOR THEM TO ASK 

FOR THAT IN THIS CASE.

     MR. PAINTER:   YOUR HONOR, WE WILL CERTAINLY AT SOME 

POINT FAIRLY BEFORE TRIAL GIVE THEM AN EXHIBIT LIST THAT 

WE ARE GOING TO USE.




                                                      (36)

     ONCE WE START GETTING INTO THE TRIAL PREPARATION

PHASE, PARTICULARLY WHERE THERE ARE A NUMBER OF WITNESSES

FROM OTHER JURISDICTIONS, FROM FOREIGN JURISDICTIONS THAT

ARE INVOLVED WE WILL --

     THE COURT:   WHAT YOU HAVE TO DO IS YOU HAVE TO GIVE 

THE COURT A PROPOSAL AS TO WHAT YOU ARE GOING TO DO.

     MR. PAINTER:   AND, YOUR HONOR, WHAT WE DO --

     THE COURT:   BY DATES, HOW YOU ARE GOING TO DO IT.

     MR. PAINTER:   WELL, YOUR HONOR, ONE THING I CAN

REPRESENT TO THE COURT THAT WE HAVE TALKED WITH COUNSEL

BEFORE ABOUT IS THAT WE WOULD RELEASE TO THEM THE JENCKS

ACT STATEMENTS SIGNIFICANTLY BEFORE TRIAL -- 90 DAYS BEFOR

TRIAL.

     THE COURT:   I DON'T KNOW WHAT SIGNIFICANTLY MEANS.

     MR. PAINTER:   WELL, 90 DAYS BEFORE TRIAL IS WHAT

SIGNIFICANTLY MEANS.

     THE COURT:   YOU HAVE TO GIVE ME A WRITTEN

PROPOSAL --

     MR. PAINTER:   WE WILL DO THAT, YOUR HONOR.

     THE COURT:   -- ABOUT ALL THE EVIDENCE IN RESPONSE TO

THIS MOTION.

     MR. PAINTER:   WELL, YOUR HONOR, I GUESS WE CAN GIVE

YOU -- ONE MOMENT, YOUR HONOR.

     THE COURT:   NO. YOU DON'T HAVE TO DO IT RIGHT NOW.

     MR. PAINTER:   I UNDERSTAND THAT, YOUR HONOR, AND WE




                                                      (37)

WILL ADDRESS THE COURT IN WRITTEN FORM.
     THE COURT:   NOW YOU CAN'T MAKE IT SO DIFFICULT TO

GET THIS DONE BY INSISTING ON YOUR RIGHTS AS THE

GOVERNMENT.

     MR. PAINTER:   NO, WE ARE NOT.

     THE COURT:   BECAUSE WE ARE GOING TO GO TO TRIAL.

     MR. PAINTER:   AND WE AGREE, AND THAT IS WHY WE FIND

THIS SOMEWHAT FRUSTRATING, YOUR HONOR. WE HAVE NOT MADE IT

DIFFICULT. WHAT THE DEFENSE HAS DONE IS PUT OFF LOOKING AT

THIS AND THEN FORCING THE ISSUE SAYING, "OKAY. WE HAVEN'T

LOOKED AT IT FOR A YEAR AND A HALF NOW. NOW THE GOVERNMENT

SHOULD TELL US EVERYTHING."

     THE COURT:   WE WILL SEE.
     MR. PAINTER:   MR. DEPAYNE TALKS EXTENSIVELY ABOUT

THE FACT THAT HE HAS NO NOTICE OF WHAT THE CHARGES ARE

AGAINST HIM.

     I AM SURE YOUR HONOR HAS READ THE PAPERS.

     THE COURT:   FORGET ABOUT THAT. FORGET ABOUT THAT.

     MR. PAINTER:   MR. RANDOLPH IN THE MOTION FOR ACCESS

TO A COMPUTER TELLING YOU WHAT HE WANTS -

     THE COURT:   WELL, NOW LET'S JUST HEAR WHAT YOUR

POSITION IS ABOUT THAT.

     NOW YOU UNDERSTAND THAT THESE ALTERNATIVES ARE BEING

OFFERED.

     MR. PAINTER:   I UNDERSTAND THAT, YOUR HONOR.




                                                      (38)

     THE COURT:   BRING MR. MITNICK OVER EVERY DAY TO A 

ROOM IN THE COURTHOUSE THAT IS FULLY EQUIPPED WITH A 

COMPUTER AND LET HIM WORK FOR 8 HOURS.

     MR. PAINTER:   YOUR HONOR, I THINK --

     THE COURT:   TAKE HIM BACK IN THE AFTERNOON.

     MR. PAINTER:   I THINK WHAT THE GOVERNMENT HAD

PROPOSED AND HAS BEEN PROPOSING TO MR. RANDOLPH FOR QUITE

SOME TIME IS THAT WE WOULD HAVE THE EQUIPMENT WHERE THE

COMPUTER EVIDENCE CAN BE VIEWED.

     WE CAN SET UP A ROOM PERHAPS IN THE FEDERAL 

BUILDING, I AM NOT SURE EXACTLY WHERE WE WOULD SET IT UP. 

WE COULD HAVE MR. MITNICK TRANSPORTED THERE.

     THE COURT:   OVER THERE.

     MR. PAINTER:   OVER THERE. IT IS UP TO THE COURT'S

DISCRETION BUT A DAILY BASIS -- PARTICULARLY AS MR.

RANDOLPH STATED HE IS GOING TO BE HIRING AN EXPERT -- DOES

NOT SEEM TO MAKE MUCH  SENSE.

     THERE IS NO LEGAL REQUIREMENT TO HAVE A DEFENDANT

VIEW ALL THE EVIDENCE AND PARTICIPATE TO THAT EXTENT WHEN

AN EXPERT --
     THE COURT:   DON'T STAND ON YOUR RIGHTS.

     MR. PAINTER:   I AM NOT, YOUR HONOR. I AM JUST

SIMPLY SAYING THAT IF WE ARE TALKING ABOUT TRANSPORTING MR.

MITNICK EVERY SINGLE DAY WE CERTAINLY WILL MAKE IT

AVAILABLE TO HIM.



                                                      (39)

     WE WILL CERTAINLY TRANSPORT HIM OVER. THAT IS AN 

OPTION WE HAVE OFFERED TO THEM WITH THE EXCEPTION -- WITH 

THE CONTINUED EXCEPTION THAT WE DO NOT WANT TO MAKE COPIES 

OF CERTAIN FILES AND WE WILL NOT ALLOW HIM TO HAVE ACCESS 

TO CERTAIN FILES.

     THE COURT:   ALL RIGHT.
     MR. PAINTER:   NOW MR. RANDOLPH PROPOSES AN

ALTERNATIVE, AND THE ALTERNATIVE IS TO SET UP A COMPUTER

ROOM IN A SENSE.

     THE COURT:   OVER AT THE M.D.C.

     MR. PAINTER:   OVER AT THE M.D.C.

     THE COURT:   WE ARE NEVER IN THE WORLD GOING TO DO

THAT.

     MR. PAINTER:   AND THE M.D.C. HAS EXPRESSED PROBLEMS

WITH THAT.

     THE COURT:   WELL, I DON'T BLAME THEM.

     MR. PAINTER:   THE OTHER ALTERNATIVE, I SUPPOSE, IS

THAT MR. RANDOLPH WOULD LIKE US TO GIVE HIM SIMPLY A COPY

OF EVERYTHING WE HAVE.

     LET ME EXPLAIN WHAT THE PROBLEM WITH THAT IS.

     THE COURT:   AND YOU ARE NOT GOING TO HAVE TO DO THAT, EITHER.

     MR. PAINTER:   SO OUR PROPOSAL IS TO ARRANGE FOR MR.

MITNICK WITHIN REASON TO REVIEW THAT EVIDENCE -- CERTAINLY

IF AN EXPERT IS INVOLVED,  I AM NOT SURE THAT INVOLVES -- IN






                                                      (40)

FAIRNESS, YOUR HONOR, I THINK THAT MR. MITNICK WOULD SPEND 

EVERY MOMENT OF EVERY DAY IF HE COULD DOING THAT.

     THE COURT:   CERTAINLY.

     MR. PAINTER:   I THINK AT SOME POINT THE COURT HAS

TO DECIDE --

     THE COURT:   YOU SEE, IF ALL YOU ARE GIVING HIM IS 

THE OPPORTUNITY TO LOOK AT THE EVIDENCE -- BIG EVIDENCE, 

THE BIG BALL OF EVIDENCE, AND YOU ARE NOT WILLING TO NARROW 

IT TO WHAT YOU ARE GOING TO USE, THEN IT MAKES IT VERY MUCH 

MORE ONEROUS TO GET THIS DONE.
     MR. PAINTER:   WELL, THE PROBLEM WITH THAT, YOUR 

HONOR, IS THE BIG BALL OF EVIDENCE IS ALMOST ENTIRELY -- 

AGAIN IF I SEGMENT IT -- HIS LAP TOP IN SEATTLE, HIS LAP 

TOP IN RALEIGH. THOSE ARE ALL THINGS --

     THE COURT:   OH, THERE IS NO QUESTION ABOUT THE FACT

THAT HE CREATED THE SITUATION.

     MR. PAINTER:   AND THAT HE KNOWS -

     THE COURT:   BUT LET'S NOT JUST KEEP TALKING ABOUT

THAT.

     MR. PAINTER:   I KNOW.

     THE COURT:   WE HAVE TO GET TO A SOLUTION.

     MR. PAINTER:   AND, YOU KNOW, THE SOLUTION THAT WE 

PROPOSE WOULD BE TO SET UP SOMETHING FOR HIM TO VIEW THAT 

EVIDENCE.

     THE COURT:   ALL RIGHT. THIS IS WHAT YOU MUST DO.




                                                      (41)

YOU TELL ME HOW LONG IT WILL TAKE YOU TO DO IT BECAUSE YOU 

COULDN'T AGREE WITH THE DEFENDANTS AS TO WHAT DAY OF THE 

WEEK IT IS.

     MR. PAINTER:   WELL --

     THE COURT:   SO NOW WE ARE GOING TO DO IT 

UNILATERALLY.

     YOU ARE GOING TO GIVE ME A PROPOSED ORDER THAT

SOLVES ALL THESE PROBLEMS FROM THE STANDPOINT OF EVERYBODY.

     MR. PAINTER:   WE WILL TRY, YOUR HONOR.

     THE COURT:   AND THEY ARE NOT GOING TO HAVE ANY

OPPORTUNITY TO RESPOND TO THAT.

     MR. PAINTER:   WE WILL SUBMIT SOMETHING, YOUR HONOR.

     THE COURT:   THEY WILL ULTIMATELY HAVE A CHANCE TO 

RESPOND TO IT BUT NOT IMMEDIATELY.

     MR. PAINTER:   I UNDERSTAND.
     THE COURT:   YOU GIVE ME THE PROPOSED ORDER; THEY

LOOK AT IT, WE MEET AGAIN. I AM SICK AND TIRED OF ALL THIS

PAPER. THERE IS NO WEEKEND THAT IS NOT COMPLETELY TAKEN UP

WITH THE PAPER IN THE MITNICK FILE.

     NOW WE ARE GOING TO SOLVE THE PROBLEM.

     MR. PAINTER:   I CONCUR, YOUR HONOR, AND WE HAVE

TRIED TO BE DELIBERATELY BRIEF IN OUR RESPONSES AND TO THE

POINT.

     THE COURT:   ALL RIGHT. NOW WHEN CAN YOU GIVE THE

COURT AND COUNSEL THE PROPOSED PLAN?




                                                      (42)

     NOW IT HAS TO BE ALL-INCLUSIVE.  IT HAS TO INCLUDE 

EVERYTHING YOU ARE PREPARED TO DO.

     MR. PAINTER:   YOUR HONOR -

     THE COURT:   IN OTHER WORDS, YOUR SOLUTION TO THE

PROBLEM. YOU JUST TELL ME THE DATE ON WHICH YOU ARE GOING

TO SUBMIT THAT.
     MR. PAINTER:   IF I MAY CONFER AND ALSO LOOK AT MY

CALENDAR -- YOUR HONOR, FIRST, I UNDERSTOOD THE COURT TO -

ONE THING THAT THE GOVERNMENT WOULD ORDINARILY HAVE TO DO

WOULD BE TO RESPOND TO THE BAIL MOTION THAT WAS MADE.

DOES THE COURT -

     THE COURT:   YOU HAVE NO OBLIGATION TO RESPOND TO

THE BAIL MOTION.

     I AM NOT GOING TO GIVE MR. MITNICK BAIL, AND THAT IS 

AN ORDER, AND YOU DO A FORMAL ORDER, AND I WILL SIGN IT.

     MR. PAINTER:   YOUR HONOR, IN THAT CASE I BELIEVE WE

CAN SUBMIT AN ORDER FOR THE COURT IN APPROXIMATELY 2 WEEKS

IF THAT WOULD BE ACCEPTABLE.

     THE COURT:   THAT'S FINE. NOW -

     MR. SHERMAN:   YOUR HONOR, COULD I JUST HAVE 30

SECONDS OF YOUR TIME?

     THE COURT:   UH-HUH.

     MR. PAINTER:   YOUR HONOR, BEFORE THAT, IF WE SUBMIT

THAT ORDER, WOULD THE COURT ALSO THEN SET A HEARING DATE?

     THE COURT:   YES, INDEED. WE ARE GOING TO AGREE ON A




                                                      (43)

HEARING DATE NOW.

     I HOPE YOU ALL REALIZE THAT WE ARE GOING TO TRIAL 

JUST AS WE GO TO TRIAL IN OTHER CRIMINAL CASES.

     MR. SHERMAN:   YOUR HONOR, I AM GOING TO BE VERY

BRIEF.

     I WOULD JUST LIKE TO SAY, FIRST OF ALL, I 

CATEGORICALLY DISAGREE WITH WHAT MR. PAINTER SAID WAS THE 

COMPOSITION OF THIS COMPUTER EVIDENCE.

     THERE ARE ALSO COMPRESSED FILES, NON-READABLE FILES.

     THE COURT MADE A REMARK WHICH CAUSED ME TO COME UP 

HERE, BUT I MISUNDERSTAND THE COURT MANY TIMES, YOUR HONOR, 

AND THE COURT SAID THAT -

     THE COURT:   MOST PEOPLE DON'T HAVE ANY TROUBLE WITH

THE CLARITY.

     MR. SHERMAN:   NO, NO. IT IS NOT THE CLARITY, IT IS

JUST THE MESSAGE SOMETIMES. I AM A LITTLE SLOW.

     YOUR HONOR, WHEN YOU SAID THAT THE DEFENDANTS - 

THAT MR. PAINTER NEED NOT RESPOND TO -

     THE COURT:   I HAVEN'T EVEN GOTTEN TO THE POINT OF 

LETTING YOU RESPOND. I AM TRYING TO DO THE FIRST PART OF 

IT.

     MR. SHERMAN:   YOUR HONOR, I TAKE IT THAT THE

SMARTEST THING I COULD DO WOULD BE TO SIT DOWN.

     THE COURT:   MR. SHERMAN, YOU HAVE TRIED CASES IN






                                                      (44)

FEDERAL COURT.

     HAVE YOU EVER BEEN DENIED THE RIGHT TO RESPOND?

     MR. SHERMAN:   YOUR HONOR HAS NEVER DENIED ME

     ANYTHING I WAS ENTITLED TO.

     THE COURT:   NO. I AM NOT GOING TO DO THAT.

     WE HAVE TO TAKE THE FIRST STEP BECAUSE YOU ALL WON'T 

DO IT COOPERATIVELY.

     MR. SHERMAN:   WELL, YOUR HONOR, JUST LET ME MAKE MY

REMARK THEN.

     MY REMARK IS THAT MR. DEPAYNE DOES NOT KNOW HOW HE 

AIDED AND ABETTED MR. MITNICK IN THESE CRIMES, AND I REALLY 

WOULD LIKE TO, AND THAT IS WHAT I AM TRYING TO GET AT.

     MR. RANDOLPH:   MAY I MAKE A BRIEF COMMENT AS WELL,

YOUR HONOR?
     THE COURT:   MR. RANDOLPH, YOU REALLY HAVE TAKEN UP

A LARGE NUMBER OF MINUTES -

     MR. RANDOLPH:   I APPRECIATE THAT.

     THE COURT:   -- IN EXPLAINING YOUR POSITION IN

ADDITION TO WHAT YOU FILED, SO NOW WOULD YOU STICK TO BEING

BRIEF?

     MR. RANDOLPH:   I WILL, YOUR HONOR. TWO COMMENTS.

     ONE, THE ONE PIECE OF INFORMATION THAT HAS NEVER 

BEEN ANSWERED -- A QUESTION THAT HAS NEVER BEEN ANSWERED BY 

THE GOVERNMENT EVEN THOUGH IT IS THEIR OBLIGATION IS 

WHETHER SOMEONE IN THE GOVERNMENT KNOWS WHAT IS IN THE




                                                      (45)

DISCOVERY, AND THEREFORE, CAN PRESENT SOME KIND OF BREAK-

DOWN TO THE DEFENSE.

     THE COURT:   YOU MEAN YOU TALKED TO ME THE LENGTH OF

TIME IN WHICH I SAID ABSOLUTELY NOTHING -- I JUST LET YOU

GO ON AS LONG AS YOU WANTED -- AND NOW WE ARE ON A

DIFFERENT POINT?

     WE ARE ON A DIFFERENT POINT NOW.

     MR. RANDOLPH:   WELL, I AM JUST RESPONDING TO WHAT

COUNSEL SAID, YOUR HONOR, THAT MR. PAINTER SAID THAT THE

GOVERNMENT KNOWS THAT 70 TO 80 PERCENT OF THIS INFORMATION

FALLS INTO SPECIFIC CATEGORIES. SINCE THEY KNOW THAT, YOUR

HONOR, I AM ASKING THE COURT TO INCLUDE IN ITS ORDER THAT

THEY DISCLOSE TO THE DEFENSE WHAT THE BREAKDOWN IS OF THE

INFORMATION SO WE ARE NOT SPINNING OUR WHEELS.

     THE COURT:   THIS IS A DIFFERENT POINT.

     MR. RANDOLPH:   I AM SORRY. I THOUGHT IT WAS THE

SAME POINT, YOUR HONOR.

     THE COURT:   IT ISN'T THE SAME POINT. IT IS A 

DIFFERENT POINT. DID YOU MENTION THIS IN THE LONG PERIOD 

OF TIME YOU WERE ADDRESSING THE COURT BEFORE?

     MR. RANDOLPH:   I DID, YOUR HONOR. I SPECIFICALLY

ASKED THE COURT TO INQUIRE OF THE GOVERNMENT IF SOMEONE IN

THE GOVERNMENT HAD ACTUALLY LOOKED AT THE COMPUTER

EVIDENCE.

     FINALLY, YOUR HONOR, IN RESPONSE TO WHAT COUNSEL




                                                      (46)

SAID, THE ENCRYPTED SOFTWARE -- IT CANNOT -- I DON'T THINK 

THAT - IT CANNOT BE ASSUMED THAT MY CLIENT KNOWS 

EVERYTHING THAT -

     THE COURT:   WHAT DO YOU MEAN? IT IS ENCRYPTED. 

THEY CAN'T TELL WHAT'S THERE.

     MR. RANDOLPH:   RIGHT.

     THE COURT:   BECAUSE THEY SAY HE KNOWS AND THEY

DON'T KNOW.

     MR. RANDOLPH:   I UNDERSTAND THAT, YOUR HONOR, BUT I

WOULD MAKE THE ANALOGY TO, FOR INSTANCE, IN CASES I HAVE

TRIED IN WHICH THERE ARE PAGES OF INCOMPREHENSIBLE NUMBERS

WHICH THE GOVERNMENT CHARACTERIZES AS PAYS AND OWES, THEY

DON'T KNOW WHAT IT IS --

     THE COURT:   THAT IS NOT A WORKABLE ANALOGY HERE AT

ALL.  THIS IS ENCRYPTED MATERIAL.

     RANDOLPH:   BUT IF THE GOVERNMENT SEIZED IT FROM

MY CLIENT, YOUR HONOR, IT DOESN'T MAKE SENSE THAT THEY

CANNOT AT LEAST ALLOW THE DEFENSE TO HAVE ACCESS TO IT.

     THE GOVERNMENT DOESN'T EVEN KNOW THAT IT IS EVIDENCE 

IN THE CASE OR NOT.

     THE COURT:   WELL, I GUESS THEY ARE NOT GOING TO USE 

IT BECAUSE THEY HAVE NOT ANY WAY OF TELLING YOU WHAT IS IN

THERE.

     MR. RANDOLPH:   THAT IS TRUE, BUT THEY ARE GOING THE

NEXT STEP, YOUR HONOR.



                                                      (47)

     ASIDE FROM SAYING THEY ARE NOT GOING TO USE IT, THEY 

ARE GOING THE SECOND STEP TO SAY, "AND WE ARE NOT GOING TO 

GIVE THE DEFENSE ACCESS TO THAT."

     THE COURT:   WHAT?

     IS IT EXCULPATORY?

     MR. RANDOLPH:   I DON'T KNOW, YOUR HONOR, BUT I

WOULD CERTAINLY LIKE TO SEE IT.

     THE COURT:   WELL WHO KNOWS IN THIS WORLD? IN THIS

WORLD OF PEOPLE WHO KNOWS WHETHER IT IS EXCULPATORY.

     MR. RANDOLPH:   WELL, YOUR HONOR

     THE COURT:   THEY CERTAINLY DON'T.

     MR. RANDOLPH:   THE GOVERNMENT AND THE COURT ARE

MAKING AN ASSUMPTION WHICH IS NOT CORRECT, AND THAT IS,

THAT MY CLIENT -- LET'S ASSUME FOR THE MOMENT THAT

EVERYTHING THAT THE GOVERNMENT SEIZED FROM MY CLIENT'S

COMPUTER WAS INFORMATION THAT HE PUT THERE.

     ASSUMING THAT TO BE THE CASE WHICH THERE IS NO 

EVIDENCE TO THAT FACT, BUT ASSUMING THAT TO BE THE CASE 

THAT ALSO ASSUMES THAT MY CLIENT HAS MEMORIZED ABOUT 8 OR 9 

GIGABITS INCLUDING COMPRESSED MATERIAL THAT WAS STORED IN 

HIS VARIOUS COMPUTERS, AND THE ANSWER TO THAT IS THAT CAN'T 

BE SO, YOUR HONOR. IN THE SCHEME OF HUMAN CONDITION NO ONE 

CAN REMEMBER THAT MUCH INFORMATION.

     THE COURT:   SO THE PROPOSITION YOU ARE ADVANCING

HERE IS THAT HE SHOULD LOOK AT EVERYTHING THAT WAS SEIZED




                                                      (48)

BECAUSE HE CAN'T REMEMBER WHAT THAT WAS EVEN THOUGH IT IS 

ENCRYPTED AND MAYBE SOME OF IT SOMEWHERE WILL BE 

EXCULPATORY.

     MR. RANDOLPH:   YES.

     THE COURT:   DO I STATE THAT CORRECTLY?

     MR. RANDOLPH:   YES, YOU DO.

     THE COURT:   WELL, YOU WILL HAVE TO ADDRESS THAT IN 

THE PROPOSED ORDER.

     MR. RANDOLPH:   ALL RIGHT. THANK YOU VERY MUCH, YOUR

HONOR.

     MR. SHERMAN:   YOUR HONOR, IS THE GOVERNMENT ALSO 

GOING TO ADDRESS MY CLAIM AS TO THE UNDERCOVER AGENT WHO 

INTERCEPTED CONVERSATIONS BETWEEN MITNICK AND DEPAYNE?

     THE COURT:   THEY ARE GOING TO GIVE THE COURT A 

PROPOSED ORDER THAT TELLS THE COURT EVERYTHING THAT THEY 

ARE PREPARED TO DO IN RESPONSE TO WHAT YOU ASKED FOR.

     NOW THIS IS THEIR RECORD. THEY KNOW WHAT THEIR 

OBLIGATION IS LEGALLY, AND WHAT YOU MUST DO IS IF YOU ARE 

GOING TO MAKE A MISTAKE, MAKE THE MISTAKE ON THE SIDE OF 

BEING GENEROUS ABOUT THIS, AND YOU WORK OUT HOW WE ARE 

GOING TO DO IT.
     NOW DOES THE COURT ACCEPT THE FACT THAT THIS IS SOME

MONSTROUSLY COMPLEX THING? IT ISN'T AT ALL; NOT AT ALL.

THE WAY IT IS BEING PRESENTED IS A DELIBERATE ATTEMPT TO

MAKE IT SOUND MURKY. IT IS NOT MURKY, NOT AT ALL, AND HOW




                                                      (49)

IN THE WORLD YOU COULD USE IN YOUR CASE IN CHIEF MATERIAL 

THAT IS ENCRYPTED I DON'T KNOW.

     MR. PAINTER:   NOR DO WE.

     THE COURT:   NOW, I DON'T KNOW WHAT YOUR RESPONSE

WOULD BE IF HE FOUND SOMETHING THAT WAS ENCRYPTED AND HE

WOULDN'T TELL YOU ANYTHING ABOUT IT EVER SO YOU WOULD NEVER

BE ABLE TO ASK ANYBODY ABOUT IT.

     I KNOW I AM MAKING MYSELF CLEAR ABOUT THAT. LET'S 

JUST ASSUME THAT THAT EXCULPATORY MATERIAL WERE PRESENTED. 

YOU HAVE NO WAY OF COUNTERING THAT BECAUSE YOU CAN'T GET 

INTO THAT MATERIAL, SO HE IS GOING TO LET YOU GET INTO PART 

OF IT BUT NOT THE REST OF IT.

     MR. PAINTER:   WE UNDERSTAND, YOUR HONOR.

     THE COURT:   WELL, I MEAN MAYBE THIS IS JUST TOO

COMMON SENSICAL THE WAY I AM PUTTING IT TO YOU, BUT IF I

UNDERSTAND IT CORRECTLY, HE GETS TO USE THE ENCRYPTED

MATERIAL BECAUSE PRESUMABLY HE KNOWS HOW TO USE IT, BUT HE

IS NOT GOING TO TELL YOU ANYTHING THAT WOULD PERMIT YOU TO

USE IT.

     MR. PAINTER:   I THINK THAT'S HIS POSITION, YOUR

HONOR, AND -

     THE COURT:   WELL IS IT?

     THAT MAKES GREAT SENSE TO YOU, DOES IT?

     MR. RANDOLPH:   WELL, YOUR HONOR -

     THE COURT:   LET ME START THIS WAY.




                                                      (50)

     MR. RANDOLPH:   ALL RIGHT.

     THE COURT:   THEY ARE NOT ABLE TO USE IT IN THEIR 

CASE BECAUSE IT IS ENCRYPTED.

     NOW THE PERSON WHO PRESUMABLY ENCRYPTED IT AND KNOWS 

HOW TO USE IT IS THE DEFENDANT.

     THE DEFENDANT SAYS, "BUT I CAN'T REMEMBER EXACTLY 

WHAT HAPPENED HERE, AND SO THEREFORE, I AM GOING TO LOOK AT 

EVERYTHING," EVEN THOUGH THEY ARE NOT GOING TO USE IT IN 

THEIR CASE.

     NOW THEN WE COME -- HE LOOKS AT IT AND THEN WE GET 

TO SOME PART OF THE CASE AND YOU ARE USING IT DEFENSIVELY. 

WHAT ARE THEY SUPPOSED TO DO?

     MR. RANDOLPH:   WELL -

     THE COURT:   THEY ARE NOT SUPPOSED TO KNOW ANYTHING 

ABOUT IT EVER; IS THAT RIGHT?

     MR. RANDOLPH:   I THINK THE ANSWER TO THAT, YOUR

HONOR, AGAIN I DO THINK THIS IS THE UNIQUE ASPECT OF THIS

CASE -

     THE COURT:   THERE IS NOTHING UNIQUE ABOUT THAT. THAT 

IS AN UNWORKABLE PROPOSITION.

     MR. RANDOLPH:   WELL, I WOULD ANALOGIZE THAT

SITUATION TO, FOR EXAMPLE, BECAUSE THE ENCRYPTED

INFORMATION, YOUR HONOR, I DO NOT BELIEVE IS ONE ITEM. IT

IS A NUMBER OF ITEMS SEPARATE AND DISTINCT.

     THE COURT:   I CERTAINLY WOULD WAGER IT IS.




                                                      (51)

     MR. RANDOLPH:   THE ONLY COMMON THREAD THAT THEY 

HAVE BETWEEN THEM IS THEY ARE ENCRYPTED AND THEY NEED A 

PASS WORD.

     IF THAT BE THE CASE, THEN IF THE DEFENSE FOUND ONE 

ITEM SAY -- LET'S SAY ON THERE IS A CONVERSATION OR LET'S 

SAY A MEMORANDUM FROM ONE OF THE VICTIMS SAYING SIMILAR TO 

THE DEPAYNE MEMO, "WE DO NOT BELIEVE MR. MITNICK WAS 

INVOLVED IN THE HACKING OF A PARTICULAR SERVER, FOR 

EXAMPLE, ON SUCH AND SUCH A DATE."

     THAT DOCUMENT -- IF THE DEFENSE WANTED TO PRESENT 

THAT DOCUMENT DURING ITS CASE IN CHIEF I THINK IF THAT WAS 

A 4 PAGE LETTER, FOR EXAMPLE, THAT THE GOVERNMENT WOULD 

CERTAINLY BE ENTITLED TO UTILIZE ANY OTHER PORTIONS OF THAT 

DOCUMENT, BUT DOES THAT MEAN THAT, THEREFORE, THE 

GOVERNMENT -

     THE COURT:   BUT THEY CAN'T LOOK AT ANY OTHER 

DOCUMENT THAT IS ENCRYPTED THAT MIGHT CONTRADICT THAT.

     MR. RANDOLPH:   WELL -

     THE COURT:   IS THAT RIGHT?

     MR. RANDOLPH:   WELL, IT PUTS -- IF THEY WERE ABLE

TO IT WOULD PUT THE DEFENSE IN A POSITION OF DOING THE

GOVERNMENT'S -- PREPARING THE GOVERNMENT'S CASE FOR THEM.
     THE COURT:   OH. WELL, YOU SEE WHERE WE ARE. YOU ARE 

GOING TO HAVE TO TAKE THAT INTO ACCOUNT IN PREPARING THIS.

     MR. PAINTER:   WE WILL, YOUR HONOR, AND ONE OF OUR




                                                      (52)

CONCERNS IS OBVIOUSLY SECURITY CONCERNS OF WHAT ELSE MIGHT 

BE IN THERE THAT HASN'T BEEN ADDRESSED.

     WE WILL ADDRESS IT.

     THE COURT:   I AM VERY CONCERNED ABOUT SECURITY 

CONCERNS. I HAVE NO IDEA WHAT THAT IS. I ALSO KNOW THAT 

IN TERMS OF FAIRNESS IF YOU ARE GOING TO SAY YOU CAN HAVE 

THE WHOLE UNIVERSE OF THIS AND IF YOU FIND ANYTHING, YOU, 

DEFENDANT, THAT WOULD BE HELPFUL TO YOU YOU CAN USE IT BUT 

THE GOVERNMENT CAN NEVER KNOW ANYTHING ABOUT THAT UNIVERSE 

OTHER THAN AS MR. RANDOLPH SAYS THE ADDITIONAL PAGES OF 

THAT ONE DOCUMENT, NOW THAT IS ABSURD.

     MR. PAINTER:   THAT WOULD BE OUR POSITION, YOUR

HONOR.

     THE COURT:   THAT IS ABSURD.

     MR. PAINTER:   WE AGREE, YOUR HONOR.

     THE COURT:   SO I AM NOT -- YOU KNOW, EVERYBODY HAS

GOT TO PROTECT THEIR POSITION HERE, AND I AM NOT CRITICAL

OF ANYBODY WHO DOES THAT. CERTAINLY THAT IS COUNSEL'S

OBLIGATION IF YOU REPRESENT THE DEFENDANT, BUT YOU REALLY

HAVE TO BE REALISTIC ABOUT WHAT WE ARE DOING.
     WE ARE JUST GOING TO TRY THE CASE, AND WE ARE GOING 

TO FOLLOW THE USUAL RULES FOR TRYING A CASE.

     NOW THEY ARE GOING TO MAKE A PROPOSAL AND WHEN YOU 

COME IN HERE ON THE DATE SET FOR THE HEARING WHICH WE ARE 

NOW GOING TO DO, YOU MAKE WHATEVER COMMENTS YOU HAVE ABOUT




                                                      (53)

IT AND THEN I WILL GIVE YOU SOME TIME TO OFFER A COUNTER.

     WE ALL KNOW WHAT IT IS YOU WANT, BUT LET US TRY TO 

BE REALISTIC ABOUT WHAT WE ARE ASKING FOR.

     MR. PAINTER:   YOUR HONOR, THE ONLY ADDITIONAL ITEM

IS RIGHT NOW THE TRIAL DATE IS SET FOR APRIL 21ST.

     THE COURT:   WELL, WE HAVE TO ACCOMODATE THIS

BECAUSE THEY HAVEN'T LOOKED AT THE MATERIAL.

     MR. PAINTER:   I UNDERSTAND. I JUST WANT TO MAKE

SURE THAT THAT IS AT LEAST FOR NOW VACATED.

     THE COURT:   NO. IT HAS GOT TO GO TO A DATE CERTAIN.

     MR. PAINTER:   I UNDERSTAND, YOUR HONOR.

     THE COURT:   DEPENDING ON WHAT YOU NOW DECIDE ABOUT

THE DATE FOR SUBMITTING -- THESE MOTIONS HAVE NOT BEEN

DECIDED YET. THEY ARE STILL PENDING SO WE ARE NOT IN ANY

DANGER ABOUT THE TRIAL DATE.

     MR. PAINTER:   RIGHT.

     THE COURT:   SO YOU SUGGEST TO ME WHAT YOU WANT TO DO.

     MR. PAINTER:   WE WILL FILE A PROPOSED ORDER IN TWO

WEEKS, YOUR HONOR, AND THE HEARING CAN BE HELD AT ANY POINT 

AFTER THAT.

     THE COURT:   WELL, YOU HAVE TO GIVE THEM A WEEK TO

LOOK AT IT.

     MR. PAINTER:   THAT'S FINE, YOUR HONOR.  THEN I 

DON'T HAVE A CALENDAR IN FRONT OF ME, YOUR HONOR, BUT --

     THE COURT:   NOW YOU NOT REQUIRED -- NOT ONLY ARE 




                                                      (54)

YOU NOT REQUIRED, YOU ARE NOT ALLOWED TO FILE ANYTHING IN 

RESPONSE TO THIS.

     WE ARE ATTEMPTING TO WORK OUT A PROBLEM. WE ARE 

GOING TO WORK OUT THE PROBLEM, AND YOU WILL HAVE PLENTY OF 

TIME TO SAY WHATEVER YOU WANT TO SAY IN WRITING. I AM NOT 

PUTTING YOU UNDER ANY PRESSURE, BUT WE ARE DEFINITELY GOING 

TO GO STEP-BY-STEP TO TRIAL.

     MR. PAINTER:   IF WE COULD FILE OUR PROPOSITION I 

GUESS TWO WEEKS FROM TODAY THAT WILL GIVE US THE WEEKEND 

BEFORE.

     THE COURT:   WHAT DAY IS THAT?

     THE CLERK:   APRIL 13TH, YOUR HONOR, IT IS A MONDAY.

     THE COURT:   ALL RIGHT. YOU FILE IT AND THEN 10 DAYS

LATER SHALL WE HAVE A HEARING, AND YOU WILL MAKE -- THEY 

WILL MAKE WHATEVER COMMENTS THEY HAVE TO MAKE ABOUT IT, AND 

THEN I WILL GIVE THEM SOME TIME TO -- AND YOU CAN MAKE 

WHATEVER COMMENTS YOU WANT TO MAKE ABOUT IT, AND THEN I 

WILL GIVE THEM SOME TIME TO COUNTER THAT ORDER WITH WHAT 
THEY SUGGEST SHOULD BE DONE, BUT YOUR ORDER HAS TO PROVIDE 

FOR MR. MITNICK TO HAVE ACCESS TO THE MATERIAL.

     MR. PAINTER:   AND WE WILL MAKE A PROPOSAL IN THAT

ORDER, YOUR HONOR.

     THE COURT:   WELL, THE PROPOSAL SHOULD DEFINITELY BE 

ONE THAT DOES NOT INCLUDE THE M.D.C. BEING USED.

     MR. PAINTER:   AND OUR PROPOSAL WOULD NOT, YOUR




                                                      (55)

HONOR.

     THE COURT:   ALL RIGHT. SO NOW LET'S SEE IF WE CAN

WORK OUT THESE DATES.

     MR. SHERMAN:   DO YOU WANT A MONDAY, YOUR HONOR?

     THE COURT:   WELL, IT DOESN'T HAVE TO BE A MONDAY.

     MR. SHERMAN:   IT MAKES NO DIFFERENCE TO ME.

     THE COURT:   ALL RIGHT.

     MR. SHERMAN:   WHATEVER DATE.

     THE COURT:   YOU DO IT, MR. FLORES.

     THE CLERK:   YES, YOUR HONOR. THE GOVERNMENT TO FILE

THEIR PROPOSED PLAN BY APRIL 13TH. IT IS A MONDAY AND THEN

WE WILL HEAR FROM -- THE HEARING COULD BE ON THURSDAY, THE

23RD OR THE 24TH AT 1:00 O'CLOCK.

     MR. PAINTER:   YOUR HONOR, THAT THURSDAY AND FRIDAY

I THINK I AM GOING TO BE OUT OF TOWN.

     THE COURT:   WELL THEN, THE FOLLOWING MONDAY.

     MR. PAINTER:   OR WE COULD MAKE IT THAT WEDNESDAY. 

     THE COURT:   ALL RIGHT; THE FOLLOWING MONDAY. 

     THE CLERK:   APRIL 27TH, YOUR HONOR, AT 1:30.

     THE COURT:   ALL RIGHT. NOW, YOU STIPULATE WITH THAT

PLAN IN MIND, THAT YOU START OUT, YOU MAKE THE PROPOSAL,

THEY COMMENT ON IT AT THAT HEARING ON THE 27TH AND THERE

WOULD HAVE TO BE SOME TIME AFTER THAT IN WHICH ALL THE

DETAILS OF THIS WOULD BE WORKED OUT AND THEY WOULD HAVE A

CHANCE TO LOOK AT THIS AND THEN YOU STIPULATE WHEN THEY




                                                      (56)

WOULD FILE ANYTHING IN RESPONSE TO THAT.

     I AM NOT SAYING ANYTHING IN WRITING BECAUSE I AM 

GOING TO FIRST OF ALL HEAR WHAT YOU HAVE GOT TO SAY ORALLY 

AND THEN YOU STIPULATE TO WHAT WOULD BE A CONTINUED TRIAL 

DATE.

     MR. PAINTER:   THAT'S FINE, YOUR HONOR.  

     THE COURT:   ALL RIGHT. NOW SAY THE DATES THAT WE'VE

SETTLED.

         THE CLERK:   THE GOVERNMENT TO FILE THEIR PROPOSED 

PLAN, YOUR HONOR, BY APRIL 13TH. FURTHER HEARING ON THE 

MOTIONS THEN WILL BE CONTINUED TO APRIL 27TH AT 1:30 AND 

THE PRESENT JURY TRIAL OF APRIL 21ST WILL BE STIPULATED 

CONTINUED BY COUNSEL.

     THE COURT:   YES. YOU HAVE TO GET THAT STIPULATION

IN TO THE COURT BY FRIDAY.

     MR. PAINTER:   WE WILL, YOUR HONOR.

     THE COURT:   IT HAS TO BE SIGNED BY THE DEFENDANTS.

     NOW ONE FINAL THING. JUST TALKING ABOUT THIS WILL 

NOT GET US ANY PLACE. WE HAVE TO RESOLVE IT, AND IT HAS TO 

BE RESOLVED FAIRLY ON BOTH SIDES, AND THEN WE WILL GO ON TO 

RESOLVE WHATEVER THE PROBLEMS ARE THAT APPEAR AFTER WE HAVE 

STARTED OUT, AND THEN WE WILL WORK OUT WHAT WE ARE GOING TO 

DO IN PREPARATION FOR TRIAL.

     AT THAT POINT IT MAY BE THAT YOU WILL HAVE TO GIVE 

US A TENTATIVE EXHIBIT LIST.




                                                      (57)

     THANK YOU. 

     MR. SHERMAN:   THANK YOU, YOUR HONOR.

     MR. RANDOLPH:   THANK YOU, YOUR HONOR.