Leo N. Levitt and Ruth G. Levitt - Page 26

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               Posner obtained a blanket rule 6(e) order which he believed            
          allowed him to give any information, books, or records to any               
          Federal law enforcement officer.  He did not get a rule 6(e)                
          order for each investigation.  Instead, he got one that covered             
          all investigations of a grand jury which was usually good for               
          about a year and a half.                                                    
               On April 4, 1974, O'Byrne testified before the grand jury              
          that indicted petitioner under section 7201 for willful tax                 
          evasion for 1967 to 1969.                                                   
          J.   Petitioner's Criminal Case                                             
               In 1974, petitioner pleaded nolo contendere to tax evasion             
          for 1970 and received a suspended sentence.                                 
          K.   Resyn's Bankruptcy Trial                                               
               In January 1978, Resyn asked the bankruptcy court to                   
          expunge, reduce, or modify the Commissioner's corporate tax claim           
          for 1963 to 1967 and fraud penalties for 1963 to 1969.  The                 
          bankruptcy court held a 6-day trial in February and March 1981,             
          during which the parties vigorously contested Resyn's tax                   
          liability.  Zuckerman, one of petitioners' attorneys in the                 
          instant case, was Resyn's attorney at the trial.  Zuckerman saw             
          no conflict in representing petitioner and Resyn in the                     
          bankruptcy case.  Petitioner attended the Resyn bankruptcy trial            
          but did not testify.                                                        
               The bankruptcy court issued its opinion on November 18,                
          1981.  That court decided that petitioner diverted Resyn income             

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