Michael H. Johnson and Patricia E. Johnson - Page 8




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          regarding the City of Lancaster's condemnation of the property              
          upon which Mr. Johnson's auto dealerships were located (the 23d             
          Street property).  At the initial interview of Mr. Johnson by two           
          revenue agents, Mr. Johnson told the revenue agents that the City           
          of Lancaster had condemned the 23d Street property and that a               
          school had been built on the property.  No school was built on              
          the property.  The Commissioner became aware of this fact                   
          sometime after the interview of Mr. Johnson.  This misstatement             
          by Mr. Johnson reasonably raised respondent's suspicion as to               
          whether the City of Lancaster properly had condemned the 23d                
          Street property.                                                            
               At the initial interview of two Lancaster Redevelopment                
          Agency (LRA) officials, Steven Dukett (Mr. Dukett) and Mark                 
          Asturias (Mr. Asturias), by respondent, Mr. Dukett and Mr.                  
          Asturias told the revenue agents that the LRA did not threaten              
          Mr. Johnson with condemnation of the 23d Street property.                   
          Sometime after these initial interviews, in sworn statements, Mr.           
          Dukett and Mr. Asturias changed their story and stated that they            
          had threatened Mr. Johnson with condemnation of the 23d Street              
          property.  Respondent was left with the conflicting statements of           
          Mr. Dukett and Mr. Asturias regarding whether Mr. Johnson had in            
          fact been threatened with condemnation of the 23d Street                    
          property.                                                                   








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