Milton D. and Linda M. Peebles - Page 4

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          that he did not have $150,000.  Two days after the confrontation,           
          petitioner made Mrs. Peebles call Dr. Hestir’s wife to tell her             
          about the affair.  Petitioner then called Dr. Hestir to tell him            
          that Dr. Hestir’s wife knew about the affair.  Dr. Hestir told              
          petitioner that he did not have $150,000, but he did have                   
          $25,000.  They agreed to meet 2 days later so that Dr. Hestir               
          could pay that amount to petitioner.                                        
               Petitioner and Dr. Hestir met in the parking lot of DeWitt             
          Bank & Trust, and Dr. Hestir gave petitioner $25,000 in cash.               
          During the exchange, petitioner and Dr. Hestir had a conversation           
          which petitioner taped.  Dr. Hestir said he was sorry about the             
          affair and stated that this was “free money”, but that petitioner           
          should be careful how he spent it because it could be considered            
          income.  Petitioner then said that if he and Mrs. Peebles were to           
          divorce, he would not file on grounds of adultery or name Dr.               
          Hestir in the proceedings.  After further conversation, Dr.                 
          Hestir apologized again and said that he regretted the affair and           
          hoped the money would help petitioner.  Petitioner then stated:             
          “Now Doc, this isn’t blackmail money”, to which Dr. Hestir                  
          replied:  “No, I didn’t say it was blackmail money; I said I hope           
          it helps you, both of you.”  At the end of the meeting,                     
          petitioner warned Dr. Hestir that he should never again speak to            
          or look at Mrs. Peebles or come to their home.                              







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