- 27 -
petitioners wanted to agree to the liability because it was
"pocket change". Mr. White also expressed concern that the case
would be referred to the Criminal Investigation Division.
Shortly after the March 1990 meeting, Ms. Davis was advised
to suspend her examination because petitioner had become the
subject of a criminal investigation.
During her examination of petitioners' returns, Ms. Davis
was not told that petitioner had an investment account with the
brokerage firm of Howard, Weil, Labouisse Friedrichs, Inc., and
she received no investment account information pertaining to that
company.
During the examination petitioner did not tell Ms. Davis
that he had cashed checks and had not deposited them into his
checking account.
During the examination petitioner did not tell Ms. Davis
that he was going to First Federal and exchanging income checks
he had received from personal injury attorneys for First Federal
bank checks.
Petitioner's Criminal Conviction Under Section 7206(1).
On September 19, 1991, petitioner was indicted by the Grand
Jury for the United States District Court for the Eastern
District of Louisiana on two counts of violating section 7206(1)
for the taxable years 1987 and 1988. The indictment charged
petitioner with making false statements on his Federal income tax
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011