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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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