James E. and Chung H. Peacock - Page 43

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               5.   Whether Petitioners Are Collaterally Estopped From                
                    Denying Fraud for 1987                                            
               Petitioners contend that they are not collaterally estopped            
          from denying fraud for 1987 because the government violated their           
          rights under Brady v. Maryland, 373 U.S. 83 (1963) by failing to            
          disclose exculpatory evidence during their criminal prosecution.            
               Federal and State prosecutors must disclose all evidence               
          that exculpates defendants in a criminal prosecution.  Id.  Both            
          petitioners pleaded guilty to tax evasion for 1987.  Taxpayers              
          who have been convicted of income tax evasion for a tax year                
          generally are collaterally estopped from denying fraud for that             
          year.  Gray v. Commissioner, 708 F.2d 243, 246 (6th Cir. 1983),             
          affg. T.C. Memo. 1981-1.  Petitioners contend that memoranda of             
          interviews of witnesses, such as Kil Lee and Kiye Oglesby, are              
          exculpatory.  Petitioners contend that they did not consider                
          whether there were Brady violations in their decision to plead              
          guilty because they first learned about Brady violations at the             
          trial in this case.                                                         
               Petitioners contend that they are not collaterally estopped            
          from denying that they are liable for additions to tax for fraud            
          for 1987.  We disagree.  First, the memoranda of interviews are             
          not in the record.  Second, the memoranda of interviews are not             
          exculpatory.  Third, it generally is not appropriate to                     
          collaterally attack a criminal proceeding in a later civil                  







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