- 182 -
otherwise acted as a "mole" or "plant" for respondent with
respect to the Kersting test cases.
5. Mr. Sims
Mr. Sims testified that he approved the Thompson and Cravens
settlements with the understanding that he would do his best to
process the proposed decisions but that he did not guarantee the
outcome. Mr. Sims testified that Mr. McWade's letters to
Mr. DeCastro stating that the decisions would be filed with the
Court later indicate that Mr. McWade misunderstood Mr. Sims'
intentions. Mr. Sims further testified that decisions could not
be entered in the Thompson and Cravens cases before the trial
of the test cases out of concern that taxpayers who had signed
piggyback agreements would argue that they were entitled to
similar settlements. Mr. Sims characterized as an oversight his
approval of Mr. McWade's decision to forward decision documents
to the Cravenses for their signature 1 month before trial of the
test cases.
With regard to the Thompson settlement, Mr. Sims testified
that he felt it was important to keep Mr. DeCastro in the case
because, unlike Mr. Izen, Mr. DeCastro was not being paid by
Mr. Kersting. However, Mr. Sims testified that he was aware, as
early as December 1986, that Mr. DeCastro did not believe that
Kersting interest deductions could be defended in court.
Mr. Sims further testified that he felt sympathy for Mr. Thompson
because of Mr. Kersting's threats and that he suggested that
Mr. Thompson's participation in the Bauspar program could be used
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