Office of the United States Trustee
10 Causeway Street, Room 1184
Boston, Massachusetts 02222-1043
(617) 565-6360
FAX (617) 565-6368

October 31, 1997

V & M/Management, Inc.
Bankruptcy No. 96-10123-CJK

To: AUSA Mark Balthazard
Dick Egan - FBI Boston

From: Patrick Hogan
US Trustee - Boston

Captioned matter concerns the facts recited in the attached letter from PAUL MOORE dated

Briefly, ALPHONSE MOURAD believes-.that STEPHEN GRAY, chapter 11 trustee of debtor corporation, "owns" unprosecuted claims on behalf of the estate worth millions of dollars against the BOSTON' REDEVELOPMENT AUTHORITY and the U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

Though MOORE and GRAY are of the opinion that the claims are valueless and without merit, MOURAD, according to MOORE, is on record (in some proceeding) that the estates'e BRA and HUD claims are worth millions, hence MOURAD's possible state of mind at the time of his conversation with MOORE.

GRAY can abandon the claims, if he believes they are worthless, or he can offer them to MOURAD, or others, for a price. From GRAY'S point of view the problem with this strategy is that he would be exposing BRA and HUD, key sources of funding for the confirmed chapter 11 plan, to the same legal harassment MOURAD allegedly intends to give GRAY if he doesn't go along with MOURAD'S demand.

Two possible violations: (1) T18, §152(6) vis-a-vis forebearence and (2) TIB, §1951 re extortion/fear of economic loss.

Attached is a news release that provides background Information, as well.

cc: J. Christopher Marshall / John P. Fitzgerald