In consideration of the $250,000 payment, Posner set in motion a simple plan, a patterned activity for making the Calvin cycle, predicated upon his economic model for the public corruption of judges:
"So what is wrong with bribing public officials to obtain public services, provided the practice is known and wages are adjusted accordingly? In effect, bribes shift the financing of public services from taxes to a combination of taxes and fees for service. By injecting a market element into public services, bribes can actually improve efficiency when used to get around rigid or inefficient rules."Posner's simple plan of 1978 was an antecessor to the 1993 work of Scott Smith, a young Dartmouth-educated writer who named his first novel A Simple Plan. Two brothers and their friend stumbled upon the wreckage of a single-engine plane with a duffle bag containing four million dolars. With the pilot dead, these ordinary men hatched an agreement to hide, keep, and share the fortune. But the plan exploded. In a variation of the banality of evil, Smith described the turn of events that divided the brothers and their friend, exploding into violence and murders.
Posner's plan, which in time evolved into the Kyrouac Agreement for furthering the Calvin cycle, began simple. In 1973-74, he bribed AOUSC executives to withdraw from a Treasury account the $48,903.81. He transferred the moneys to the Federal Registry in South Bend; from there he funneled the funds through the John Doe Trust. Then, Posner transferred the $48,903.81 to PEFCU through Margerum's local connections in West Lafayette to pay the Woodmar recipients in furtherance of the Calvin cycle. In 1984, Posner entered the First Posner Order, Crumpacker v. Gettinger, USDC, N.D.Ind., No. H83-700 (7-12-84), to cover up PCDF (Purdue-Calumet Development Foundation) Director Jay Given's gangland slaying for the $5,000 bribe he (Given) paid Judge James T. Moody. By that order, Posner barred Woodmar claimants from getting paid the $48,903.81. Don MacLauchlan, Fong Solar Research financial vice-president, gained personal knowledge of the simple plan. So Posner ordered the MacLauchlan contract to have him eliminated.
In 1992, Posner entered the Second Posner Order, 976 F.2d 735, to await the last Woodmar claimant's death. In 2004, Judge Moody used the Second Posner Order to bar Fong from claiming the Woodmar's cash assets. He then "granted" the long-dead Woodmar claimants the $48,903.81, which by the Margerum-Posner transfer of 1978 had been paid to the Woodmar recipients in furtherance of the Calvin cycle.
On 12-31-96, Fong filed the 1996 report on the $48,903.81 and Posner's order of the MacLauchlan contract. In March of 1998, the Woodmar recipients removed that report from the Service's administrative file to enable the Moody action. In that action, U.S. Magistrate Judge Paul Cherry disclosed the court's (Moody) transfer of the original PX 45 tape to DOJ (Tax) Chief D. Patrick Mullarkey to take matter from it, enabling the 7th Circuit's issuance of the Second Posner Order, 976 F.2d 735, affirm. 692 F.Supp. 930.
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