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Mr. Sanchez' Notices of Proposed Disciplinary Action to
Messrs. Sims and McWade listed the following reasons for the
proposed disciplinary actions: (1) Negotiating an unauthorized
settlement agreement with the Thompsons; (2) basing the Thompson
settlement on unaudited and insufficiently documented losses from
an unrelated shelter; (3) allowing the Thompsons a settlement
that provided them more favorable treatment than other taxpayers;
(4) compensating the Thompsons for their attorney's fees; and (5)
not informing the Tax Court of the Thompson settlement
arrangements.
Mr. Sims responded in writing to Mr. Sanchez on
September 14, 1993. Nonetheless, Mr. Sanchez sustained the
Notice of Proposed Disciplinary Action issued to Mr. Sims.
Mr. McWade retired from the Internal Revenue Service
effective October 2, 1993, rather than accept a transfer to the
Los Angeles District Counsel Office. On November 2, 1993,
Mr. Jordan approved Mr. Sanchez' proposed disciplinary action.
Mr. Sims was suspended from duty without pay for 14 days and was
transferred to the San Francisco Regional Counsel Office, where
he was assigned nonsupervisory duties as a Special Litigation
Assistant in the General Litigation area.
D. Indictment of Mr. Izen
On May 3, 1995, following an investigation by the Criminal
Investigation Division of the Internal Revenue Service, a Federal
grand jury indicted Mr. Izen on four counts of conspiracy and
money laundering under 18 U.S.C. sections 371 and 1956(a)(3)(A)
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