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James MacDonald (MacDonald) was a staff attorney who
reviewed criminal tax matters for respondent's Regional Counsel
in Newark. His work was limited to criminal enforcement.
MacDonald did not have authority to stop a recommendation to
prosecute a strike force case. MacDonald reviewed O'Byrne's
report and the file for respondent's Regional Counsel. MacDonald
had a conference with Herbert Zuckerman (Zuckerman), petitioner's
counsel. In March or April 1973, MacDonald contacted O'Byrne and
asked him for additional information including a copy of the rule
6(e) order. O'Byrne did not obtain a copy of the rule 6(e)
order; he believed that his supervisor, Dubow, gave the rule 6(e)
order to MacDonald.
MacDonald sent a criminal referral letter to Scott P.
Crampton, Assistant Attorney General, Tax Division, Department of
Justice, dated May 17, 1973. The letter stated:
The specific items of unreported income in this case
were discovered by review of Resyn Corporation's
cancelled checks gotten by the government as a result
of a grand jury subpoena (Special Agent's Report, Pages
12 and 13). The examining agents (acting pursuant to
the authority granted by the Court in a valid [Rule �
6(e)] order * * *) found checks payable to Polymer
Chemicals. Subsequent inquiries with the bank where
the Polymer Chemical account was held disclosed the
existence of the Chemical Trader account (Special
Agent's Report, Page 12). No evidence of the two bank
accounts was disclosed by Levitt, or by any of his
employees, pursuant to testimony in bankruptcy
proceedings.
MacDonald's criminal referral letter stated that a copy of the
rule 6(e) order was attached as exhibit C. However, there is no
copy of the rule 6(e) order in respondent's file.
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