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wished to settle a project case on grounds different from the
official project settlement offer. Mr. Sanchez considered Mr.
Bakutes his key executive staff person and had directed all
District Counsel, including Mr. Sims, to discuss any unusual or
novel matters with Mr. Bakutes.
Mr. Bakutes and Mr. Cantalupo immediately informed
Mr. Sanchez about the Thompson settlement. This was the first
time Mr. Sanchez heard of the Thompson settlement. No one in the
Western Regional Counsel's Office knew of the unusual settlement
of Kersting cases before May 22, 1992. No one in the Western
Regional Office had approved the settlements.
Mr. Sanchez immediately called Mr. Sims, who admitted the
basic facts regarding the Thompson settlement arrangement.
Mr. Sims stated that his motivation for the settlement was to
prevent Mr. Kersting from perpetrating a fraud on the Court.
Mr. Sims stated that the best way to do this was to have at least
one attorney not paid by Mr. Kersting participate in litigating
the test cases.
After discussing the matter with Mr. Sims, Mr. Sanchez
contacted Mr. DeCastro and learned more of the details
surrounding the settlement. Mr. DeCastro informed Mr. Sanchez
that Mr. Sims and Mr. McWade had agreed to a proposal to keep the
Thompsons in the litigation by rebating to the Thompsons an
amount sufficient to pay their legal fees. Mr. Sanchez told
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