While I had been doing some business in a building, I encountered Vaughn. We walked together into an office and began talking. I immediately brought up the fact that I realized I had fallen behind in making some payments to him and Lynn (a Waco attorney) for money I still owed them from when we had been buying houses together. I explained that I hadn't been working, but I was going to return to work very soon and would begin making the payments again. He seemed concerned but still didn't seem to place much significance on the matter.

I left him and walked into another office where I found Lynn. We began talking about the same thing and I asked him if he and Vaughn had ever sold the house in Greenville, Texas. He said they had finally sold it for $5,500. That meant we had lost money on the house; but I was glad anyway to hear that it was finally gone. I told him I was planning to pay them the money I owed as soon as possible.

But I suggested that instead of paying the money directly to them we use some other plan whereby I would pay about half the money to Ramey and then somehow Ramey would get the money to them. The idea was that by doing it that way we could avoid paying income taxes. Lynn didn't commit himself, but seemed obviously interested.

I then just came out in the open and told him of course that we were conspiring to commit fraud on the Internal Revenue Service, but that I thought I could trust him. He asked me what would happen if we were caught and I told him we could receive five years in prison.