Jerry and Patricia A. Dixon, et al - Page 89




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          resolution of their tax cases that was inconsistent with the                
          settlements offered to other Kersting program participants.                 
               Ms. Sullivan's referral to the OIG was assigned to                     
          Mr. Halleck.  On July 29, 1996, the OIG informed Ms. Sullivan               
          that the OIG would take no further action.  The stated grounds              
          were the expiration of the period of limitations for criminal               
          prosecution of any acts of wrongdoing by Messrs. Sims and McWade            
          and the OIG's prior investigation and report.                               
          J.   Mr. Izen's Motion To Compel Production of Documents and                
               Issuance of Protective Orders                                          
               On April 26, 1996, the Court granted Mr. Izen leave to file            
          a Motion to Compel Answers to Deposition Questions and Production           
          of Documents.73  Mr. Izen argued that the Court should rule that            
          the crime-fraud exception to the attorney-client privilege                  
          applies to these cases and that various witnesses, including                
          Messrs. Thompson, DeCastro, Sims, McWade, and a number of                   
          additional Government attorneys, were barred from asserting                 
          the attorney-client privilege in response to outstanding                    
          discovery requests.74  The Court initially ordered respondent,              
          Mr. Thompson, and Mr. DeCastro to file responses to Mr. Izen's              


          73  Leave to file the motion to compel was necessary insofar                
          as the motion was filed beyond the Mar. 29, 1996, deadline for              
          completing discovery as set forth in the Court's order dated                
          Sept. 14, 1995, as amended by order dated Dec. 28, 1995.                    
          74  The documents that the Government declined to produce                   
          were listed in a privilege log and supplemental privilege log               
          that were attached to Mr. Sticht's Supplement to Petitioners'               
          Motion for Court Order Permitting Department of Treasury to                 
          Disclose Information Pursuant to Privacy Act and Response to                
          Objections to Notice of Deposition filed Apr. 8, 1996.                      

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