Jerry and Patricia A. Dixon, et al - Page 46




                                       - 132 -                                        

          was not on good terms with Mr. Kersting.  Under cross-examination           
          by Mr. Izen, Mr. Alexander admitted that he had talked with                 
          Mr. McWade about submitting an affidavit concerning                         
          Mr. Kersting's programs.  When asked by Mr. Izen whether he and             
          Mr. McWade had discussed a reduction of Mr. Alexander's tax                 
          liability in exchange for the affidavit, Mr. Alexander responded,           
          "Specifically, no."58  Mr. Izen's cross-examination of                      
          Mr. Alexander included questions concerning Mr. Alexander's                 
          various dealings with Mr. Kersting, including First Savings and             
          Mr. Alexander's participation in the Kersting programs at issue             
          in the trial.                                                               
               After Mr. Izen had questioned Mr. Alexander about his                  
          participation in the Kersting programs at issue in the trial,               
          Mr. McWade elicited testimony from Mr. Alexander (on redirect               
          examination) that Mr. Kersting had represented to Mr. Alexander             
          and others that the promissory notes underlying the interest                
          expense deductions would not be called for payment.                         



          58  Mr. Izen questioned Mr. Alexander as follows:                           
               Mr. Izen:  Have you ever offered * * * Mr. McWade,                     
               or any other person connected with the Internal Revenue                
               Service, an affidavit concerning your testimony                        
               concerning these tax shelters?                                         
                    Mr. Alexander:  We talked about it.                               
                    Mr. Izen:  Did you ever offer to them to testify                  
               in return for reducing your own personal taxes?  The                   
               amount of.                                                             
                    Mr. Alexander:  Specifically, no.                                 

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