Part 77, page 216

Transcript

The scan is the source; the transcript is machine-generated from it.

FD-302a (Rev. 11-15-83)

213A-IP-28 PX 213A-31

Continuation of FD-302 of ARTHUR B. DERHAM ,On 09/14/89 ,Page 3

---

DERHAM also advised that on occasion there would be Spanish speaking students in attendance at the course that could not truly receive adequate training due to the language difficulties caused by their unfamiliarity of the English language. DERHAM felt that this was odd, but did not question their attendance at this school, because he felt that they were trying to learn a skill.

DERHAM advised that examinations were given on a regular basis by the instructors of the heavy duty equipment, however, he did not feel that most of the students received enough training to pass any examination given without help from the instructors. DERHAM felt that approximately five out of 100 students would be capable of every learning how to operate the equipment. He truly questioned the recruitment policies of the individuals in Indianapolis, because of the numerous unqualified individuals that he encountered at his heavy duty equipment site shop. He felt that the recruiters must not have any type of knowledge regarding the operators of heavy duty equipment if these were the individuals that were being sent to learn in just a four week period.

DERHAM had no knowledge regarding the financing or enrollment policies of STS, however, he did get a feel from the students that they did not believe that they would have to repay any of the loans granted in order to gain enrollment into this school.

DERHAM advised that he really had no knowledge regarding STS property that was allegedly sold out of the back door of STS wherein cash generated with kicked back to STS employees, nor was DERHAM able to furnish any additional information regarding twelve current/former employees who were victims of a STS Employee Stock Option Plan (ESOP) fraud committed by STS. He advised that he is currently involved in civil litigation in order to regain funds which he had invested in the Stock Option Plan, but can not currently provide information regarding the other twelve due to the fact that most have moved out of the area.

---

DERHAM provided the names of one [redacted] [redacted] as a person whom may be able to provide additional information regarding STS activities. [redacted] currently resides at [redacted] Mesa, Arizona. Additionally, one [redacted] [redacted] as another individual who may be contacted and provide information regarding STS activities.

---

DB Cooper-33562