-43- 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 civilPage: Previous 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Next
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