Jerry and Patricia A. Dixon, et al - Page 100




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               Mr. McWade initially testified that he informed Messrs.                
          Dombrowski and Hatfield about the Thompson and Cravens settlement           
          agreements before the trial of the test cases.  However,                    
          Mr. McWade later testified that he may have not informed Messrs.            
          Dombrowski and Hatfield of the agreements.  Mr. McWade testified            
          that he had no recollection that he had informed Mr. O'Neill                
          about the Thompson and Cravens settlement agreements.80                     
               Mr. McWade denied offering Mr. Alexander any inducements to            
          either cooperate with the Government or testify at the trial of             
          the test cases.  Mr. McWade acknowledged that Mr. Alexander                 
          provided assistance to him in understanding certain aspects of              
          the Kersting programs during the trial of the test cases.                   
          Mr. McWade did not provide the Court with any credible                      
          explanation or justification of the decisions entered in the                
          Alexander cases for the taxable years 1974 through 1977, which              
          completely wiped out the deficiencies previously determined on              
          the statutory notices.81                                                    
               Mr. McWade denied that Mr. DeCastro passed information to              
          him regarding Mr. Izen's trial strategy or that Mr. DeCastro                




          80  Messrs. Dombrowski, Hatfield, and O'Neill denied having                 
          any knowledge of the Thompson and Cravens settlements before                
          their discovery in 1992.                                                    
          81  Contrary to the Court's Dixon II opinion, the decisions                 
          in the Alexander cases for 1974 and 1975 reflected overpayments             
          of $2,133 and $811, respectively, while the decisions in the                
          Alexander cases for 1976 and 1977 reflected no deficiencies.  See           
          supra pp. 112-115.                                                          

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