Petition Submitted to the Court by Some Lenders

Petition

RE: State of Vermont Department of Banking, Insurance, Securities and Health Care Administration

(BISCHA), Plaintiff, v. Malcolm H. Parker, Defendant

Washington County Docket No. 881-11-09 Wncv

PREFACE:

A great many investors/lenders in Malcolm H. (Mac) Parker’s movie project Birth of Innocence are currently

experiencing dire shortages of funds to live on, and many also risk losing what amounts to their entire life's

savings, saved college funds, and their credit because of his mishandling of funds. There are many

investors/lenders whose lives are on hold and real people have been affected not only financially but also

mentally, emotionally, and even physically. It is clear to us, the undersigned, given what is known, that the

legal case could take years to resolve.

Mac Parker has recently abandoned his original movie, Birth of Innocence, which is the principle asset that

could be used to begin to repay the investors/lenders. This is the movie that all investors/lenders know, have

embraced for its message, and financed. This situation is due in large part to and precipitated by the

improper dismissal of the film’s editor of five years, Horace Williams (Little Castle Studio, Starksboro, VT) on

May 8, 2010. The film, the only asset, is now in limbo and without value as long as Mac Parker remains in

litigation, as confirmed by his new editor, Bill Kinzie (2muchMedia, North Ferrisburg, VT) who clearly stated

that he will not proceed on any new movie while Mac Parker is in litigation. If the present course of action

continues for any length of time, and the legal case does take years to resolve, it will be years before any

revenue stream even begins to appear. This would be disastrous for many of us. Many elderly

investors/lenders could literally die before funds begin to appear if this present course of action is allowed to

prevail.

Further, a large number of investors/lenders, who are not part of the investor email network, the project’s

main method of communication, are unaware that these fundamental changes have occurred and have not

been informed of the true condition of the project and their chances of being repaid.

Therefore, a creative solution for swift completion of the film as we know it is in order. On behalf of the

interest of all investors/lenders (known and unknown), we several investors/lenders do hereby petition the

court to grant control for completion, marketing, and distribution of the film to the investors/lenders or

trustees appointed to represent investor/lender interest as quickly as possible.

BODY:

We, the investors/lenders in the movie project Birth of Innocence, entered into our financial

agreements with Mac Parker, believing, and being led to believe:

1 - That we were funding the creation of a film that was solely Mac Parker's idea.

2 - That we were funding the creation of a film that was Mac Parker's sole occupation.

3 - That all funds borrowed from us would be applied only toward the production of the film.

4 - That funds borrowed from us would not be used for any other purpose.

5 - That Mac Parker would be completely honest in his dealings with us in all ways.

6 - That Mac Parker would be completely open with material facts that could affect our collective chance of

being paid back.

7 - That Mac Parker would manage the project in a businesslike, timely, and legal manner, with due

diligence.

8 – That Mac Parker would complete the film according to the original concept.

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Page 2

Petition to the Court

Re: State of Vermont v. Malcolm H. Parker

Washington County Docket No. 881-11-09 Wncv

2

We, the investors/lenders in the movie project Birth of Innocence, believe that we have been misled

as to the truth in these ways:

1 - Over a period of ten years, not a single one of us was told from the start that this film was not Mac

Parker's sole body of work; that Dr. Louis James Soteriou was working in the background the whole time as

the dominant partner from 1999 until November 2009.

2 - Failure to reveal that there was a “science” behind Birth of Innocence called "Neuro Cosmo Theosis"

when it was represented that this film was meant to be free of all belief systems and to be theologically

neutral.

3 - That an amount approaching half the borrowed principal, totaling more than 3.6 million dollars (from 1999

through mid-February 2007,according to court documents)

1

, was constantly being transferred or paid to Lou

Soteriou, and not being applied directly to the creation of the film.

4 - That Mac Parker has not provided a complete and plausible explanation for the real reason this significant

amount of money was paid out to Lou Soteriou, his “silent partner”.

5 - That Mac Parker failed to inform us all of this enormous transfer of borrowed principal until impending

BISHCA discovery forced him to do so.

6 - That Mac Parker engaged scores of us in the effort to raise tens of thousands of dollars in legal defense

funds from December 2009 through the beginning of March 2010 without telling any of us of these 3.6 million

dollars in payments to Lou Soteriou.

7 - That Mac Parker constantly represented for a number of years that the film was nearing completion, when

it clearly was not.

8 – That the actual cost of the film is about $1.2 million (from 1999 through mid-February 2007, according to

court documents)

2

, a small portion of the money raised.

9 – That Mac Parker maintained a life insurance policy in the amount of $2.5 million, “sufficient to pay back

all providers of capital,” which the policy did not, and for a period of time his wife was the primary beneficiary.

10 – That Mac Parker abruptly dismissed Horace Williams, the film’s editor of 5 years on May 8, 2010, over a

personal matter – severely damaging the possibility of completing the film - but the investors may never

have been informed of this critical information if Mr Williams had not alerted them himself on May 26, 2010.

There is a very real possibility that this information was deliberately withheld because donations to the new

legal defense and production funds (founded on Williams’s budget) would have slowed or stopped

completely had donors been informed.

11 – That Mac Parker had abandoned the film as originally conceived shortly after the abrupt dismissal of the

film’s editor.

12 – That Mac Parker would be able to honor, and would honor, all investment agreements in full (including

interest) independent of the completion of the film.

In addition - we, the lenders/investors in the movie project Birth of Innocence, believe that Mac

Parker has committed these critical management errors:

1 - Mac Parker failed to exercise due diligence in researching and understanding the legal requirements

necessary to set up a project of this scale.

2 - Mac Parker failed to set up the project in a manner compliant with securities law, needlessly endangering

the interests of all concerned.

3 - Mac Parker made a critical error in removing the film's editor of five years at a time when everybody's

interest, even his own, would clearly suffer in terms of the stability of the completion of the project.

4 - Mac Parker removed the musical score - a decision that could cost us all another unnecessary $30,000

outlay and a delay of at least 3 months to complete the project.

5 - Mac Parker has embarked on a totally new speculative replacement to the original movie at a time when

completion of the original project is vital to all concerned.

1

BISCHA Motion to Sanction Defendant for Failure to Comply with Court Order (June 8, 2010). See Email dated

3/21/2010 to Julianna Parker, attached as Exhibit B.

2

Ibid 

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Petition to the Court

Re: State of Vermont v. Malcolm H. Parker

Washington County Docket No. 881-11-09 Wncv

3

NOW - BE IT KNOWN THAT BECAUSE:

1 – We, the investors/lenders, have been and continue to be misled in so many ways regarding the truth.

2 - Mac Parker continues to withhold the real reasons for payment and transfer of so much of our money to

Lou Soteriou.

3 - The film and project are currently at a standstill as a result of the May 8, 2010 abrupt dismissal of the

film’s editor, Horace Williams, Jr. of Little Castle Studio, Starksboro, VT, when the film was within 3 months

of completion.

4 - The new editor, Bill Kinzie (2muchMedia, North Ferrisburg, VT), will not work on the film until litigation

ceases.

5 - Mac Parker has abandoned his original idea, in which we all invested, and he has embraced Bill Kinzie’s

idea of producing a documentary of the story of making the movie.

6 - All the above have combined to cause financial and life conditions that are dire for a great many of us.

WE FEAR THAT:

1 - These factors, combined with the legal challenges facing Mac Parker, represent a very real and present

danger to the successful and timely completion of the film at a time when the collective needs of many of us

have become dire.

2 - More erratic behavior on the part of Mac Parker could lead to business deals for finding finishing funds,

marketing, and distribution funds, that are not in best interest of the investors/lenders.

3- If Mac Parker is allowed to direct completion of the film, the film may never be finished.

THEREFORE -

WE THE UNDERSIGNED, HEREBY PETITION THE COURT

TO FREE US FROM RELYING ON MAC PARKER TO COMPLETE, MARKET, AND DISTRIBUTE THE

ORIGINAL FILM BIRTH OF INNOCENCE.

TO ALLOW US TO COMPLETE, MARKET, AND DISTRIBUTE THE ORIGINAL FILM BIRTH OF

INNOCENCE, STARTING IMMEDIATELY.

We specifically ask the Court:

1 - TO ASSIGN RECEIVERSHIP, OR MODIFY THE CURRENT ASSET FREEZE, OR THROUGH ANY

OTHER MEANS AVAILABLE TO THE COURT, CONVEY TO THE INVESTORS/LENDERS COMPLETE

CONTROL OF THE PROCESS OF COMPLETING, MARKETING, AND DISTRIBUTING THE ORIGINAL

FILM BIRTH OF INNOCENCE, INCLUDING THE LICENSING OF ALL COPYRIGHTS OWNED BY MAC

PARKER.

2 - TO ASSIGN RESPONSIBILITY TO THE INVESTORS/LENDERS TO CREATE A STRUCTURE, SUCH

AS A COOPERATIVE WITH AN ELECTED BOARD, TO REPRESENT THEIR INTEREST AS FAIRLY AS

POSSIBLE, IN ORDER TO DIRECT THE COMPLETION, MARKETING, AND DISTRIBUTION OF THE

FILM.

3 - TO MAKE AVAILABLE ALL POSTAL MAILING ADDRESSES OF ALL THE INVESTORS/LENDERS.

WE BELIEVE THAT A LARGE PORTION OF THE INVESTORS/LENDERS HAVE NOT BEEN INFORMED

OF RECENT DISCOVERIES AND EVENTS.

WE, THE UNDERSIGNED, RESPECTFULLY REQUEST THAT THE COURT TAKE THE SERIOUSNESS

OF THIS PETITION INTO CONSIDERATION. TIME IS CRUCIAL