Jerry and Patricia A. Dixon, et al - Page 88




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          H.   Mr. DeCastro's Withdrawal                                              
               By order dated April 3, 1996, the Court directed                       
          Mr. DeCastro to show cause why he should not be disqualified from           
          serving as counsel or otherwise representing the Thompsons at the           
          evidentiary hearing.71  On April 10, 1996, the Court received a             
          letter from Mr. DeCastro stating that he had withdrawn his                  
          representation of the Thompsons and that they would retain                  
          substitute counsel to represent them at the evidentiary hearing.            
          By order dated April 11, 1996, the Court discharged as moot its             
          order to show cause dated April 3, 1996.  Mr. Huestis entered his           
          appearance on behalf of the Thompsons at the evidentiary hearing.           
          I.   Discovery of Alexander Decisions and Referral to Office of             
               Inspector General                                                      
               Shortly before commencement of the evidentiary hearing, the            
          parties discovered that decisions had been entered in the                   
          Alexander cases eliminating their deficiencies for 1974, 1975,              
          1976, and 1977.72  On May 10, 1996, Martha Sullivan                         
          (Ms. Sullivan), successor to Mr. Sanchez as Regional Counsel,               
          Western Region, referred the matter to the OIG.  The referral               
          questioned whether the Alexanders had received a beneficial                 


          71  Again, the Court relied primarily upon ABA Model Rules                  
          of Professional Conduct rules 1.7(b) and 3.7(a) as the bases for            
          its order.                                                                  
          72  It appears that the Alexander correspondence that had                   
          been attached to Mr. McWade's motion to take Mr. Kersting's                 
          deposition, filed in the test cases on Aug. 25, 1988, piqued                
          Mr. Sticht's curiosity and led him to request discovery of the              
          Alexander files of the Internal Revenue Service for the taxable             
          years 1974-77.                                                              

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