Dorchester Industries Incorporated, et al. - Page 11

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          the letter.  It states that, earlier that day, a report by                  
          telephone had been made by Gilson to Frank Wheaton of the                   
          morning’s telephone conversation between Gilson and Garofalo and            
          that Frank Wheaton had instructed Gilson to continue to settle              
          the matter.  It also states that, consistent with the telephone             
          report and resulting instruction, correspondence accepting the              
          Government’s settlement proposal had been faxed simultaneously to           
          Garofalo and to Frank Wheaton.  In addition, the November 6                 
          letter to Wheaton states that Riley’s office will take the lead             
          in “an offer in compromise” and that it would be necessary for              
          Frank Wheaton to provide a list of assets to the IRS at some time           
          in the future.                                                              
               At 3:30 p.m., on November 6, 1995, Gilson faxed a letter to            
          Garofalo (the November 6 response) accepting the revised                    
          settlement proposal “as set forth in your revised offer of this             
          morning, November 6, 1995.”  The November 6 response requests               
          that Garofalo advise the Court of the settlement in order to                
          avoid the necessity of appearing for trial on Wednesday,                    
          November 8, 1995, in Philadelphia, Pennsylvania.                            
               Garofalo informed the Court of the settlement.  By order               
          dated November 6, 1995, upon information that the parties had               
          reached a basis for settlement, the Court struck the 1993                   
          docketed cases from the November 8, 1995, Philadelphia,                     
          Pennsylvania, special trial session and ordered the parties to              






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