Judge William Alsup signed an order on June 21, 2006 providing a procedure whereby homeowners that deeded their property to the Dorean Group as trustees may apply for modifications to the injunction to allow them to cure title defects cause by the Dorean Group debt elimination scheme.

The order provides that homeowners seeking to modify the injunction must file a Request to Modify the Preliminary Injunction for Property Address. The request must state the reasons for the modification and describe the proposed transaction. It must be served on Dale Heineman, Kurt Johnson, lenders with secured interests in the property and counsel for the government in the criminal case. After a time period for opposition, the magistrate shall make a ruling which may be subject to de novo review. Please review the Order Setting Procedure for Requests to Modify Injunction for Borrowers to Seek Return of Property Interests Conveyed to Defendants Heineman & Johnson for specific information on the procedure.

On our last update of the status of the criminal proceedings, Dale Scott Heineiman and Kurt Johnson had been ordered to undergo psychiatric examinations. In the Order Requiring Mental Examinations, the Court stated that Heineman and Johnson, who had refused counsel, had made multiple statements 'that give reason to believe they may suffer from a mental disease or defect that renders them mentally incompetent to the extent that they are unable to understand the nature and consequences of the proceedings against them, to properly conduct their own defense or to assist potential counsel in their defense (or that the record might suggest incompetence to an appellate court.) The court referred to statements suggesting Heineman and Johnson 'believe that they were in communication with Jesus and that he had told them he was burning down three judges' homes.' The court noted that in issuing that order, it was not implying or finding that Heineman and Johnson were mentally incompetent.

Although the psychiatric examinations were sealed by the court, Heineman and Johnson were not found incompetent and the case is proceeding. The court held a Faretta Hearing to ensure that the defendants were, in waiving their right to be represented by counsel, making a knowing and intelligent decision that represented an exercise of informed free will. Heineman and Johnson are each acting as their own attorneys and the court denied the government's request to appoint 'stand-by counsel' for the defendants.

The court recently issued an "Order re Capitalization of Defendant's Names." Apparently, Heineman and Johnson requested that the court free them and dismiss charges because they spell their names "Dale Scott Heineman" and "Kurt F. Johnson" and the indictment files against them sometimes spells their name with only uppercase letters (i.e. "DALE SCOTT HEINEMAN" and "KURT F. JOHNSON") In the alternative, they requested an evidentiary hearing 'on their identities' or requiring that the indictment be amended to change the capitalization.

The court wasn't overly impressed by the argument and found that the disagreement over capitalization didn't provide a basis for the requested relief and denied the request. The court also rejected the defendants' arguments that the capitalized spellings denote to "Cestui Que Trusts" and that they are therefore being held for the alleged crimes of the Cestui Que Trusts in violation of the Due Process Clause and the Sixth Amendment.

The court noted that the argument is a 'creative endeavor based on a formalistic but fanciful distinction' and that the 'emptiness of this argument must be clear by now.' The court went on to state:

"It is time that defendants turned their considerable intelligence toward viable defense strategies."

Some of the documents that have been filed by the defendants include:

Constructive notice and demand for abatement; demand for court of record; request for stay of proceedings; affidavit of truth by "William Franklin Julian", Sui Juris, points and authorities

CONSTRUCTIVE NOTICE of notice of refusal for cause without dishonor the order for psychiatric examination under U.S.C. 18:4241 and order taking case off e-filing by Dale Scott Heineman

MOTION for summary judgment or in the alternative a settlement by set-off or by acceptance of unconditional tender of defendants affidavit in support order by Dale Scott Heineman

NOTICE by Dale Scott Heineman, Kurt F. Johnson of acceptance of oath of office

NOTICE of corrections of caption of superceding indictment to refelct the removal of the ens legis for the placement of the natural man by stipulation of the parties by Dale Scott Heineman, Kurt F. Johnson

DEMAND for surrender of bond verified blaim and notice and dishonor contract by Dale Scott Heineman, Kurt F. Johnson