-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 civil
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