Loeb, Hamilton .. . 
r0; I'll I?.l 

Mr. Ambassador:

Update on the status, after meeting with BF and his attorney today:

1. We have no further communication from the US Attomey?s of?ce, since we told them in early December that
the Embassy does not want charges ?led against BF. The ball is in their court to come back to us on what
they intend to do. There is no clock ticking to force them to a decision point.

2. BF ?5 attorney con?rms today that he also has had no communication from the US Attorneys since he met
with them, which was shortly after our ?don?t ?le charges? call.

a. To some degree, the lack of USG response might be attributable to the December/January holidays.
But most likely it is due to the lack of a clear path for them - if the victim does not want it prosecuted
criminally and will not supply witnesses, making a charge stick would be tricky.

3. After resolving some procedural threshold issues with lawyer, I got the corporate materials on Oasis. I
met today with BF and his lawyer. The baseline situation is:

a. I am working up the papers to remove him from Oasis roles. Because of the way the incorporation
papers were prepared (any funds left over on dissolution go to the Georgetown Arab Studies
program, not to the Embassy), we need to keep Oasis in place until we get the delinquent tax returns
prepared and ?led.

b. Since we need to have signan from _and_(the other two directors) to
make the change, my suggestion is:

i. We substitute my name in place of Byron as the third director and executive. I will
present this as a routine change and will not share with them what?s happened. unless you
want me to do so.

ii. I will then close off the current Oasis accounts and move the funds to a new account.

I will retain an accountant to go with me to get the records and walk through the
transaction history with Byron, so we can determine how to handle the delinquent tax retums
on Oasis and get returns ?led. We will then be able to close Oasis down.

iv. The amount left in the Oasis accounts is less than $100k. I had expected considerably
more. I have previously instructed BF, and he agreed, that the account will be frozen while
we formalize the changes to Oasis.

Let me know forward with item 3 above, including contacting the two Georgetown people who
are on the Oasis board.
HL