Jerry and Patricia A. Dixon, et al - Page 102




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          to offset or reduce the Thompsons' tax liability.  Mr. Sims was             
          unable to confirm that he reviewed Mr. Thompson's Bauspar records           
          as a basis for revising the Thompson settlement agreement.                  
          Mr. Sims testified that he and Mr. McWade had reached an                    
          agreement in principle with Mr. DeCastro before the trial of the            
          test cases to further reduce the Thompsons' tax liabilities.                
               Mr. Sims testified that he did not know the basis upon which           
          the Alexander cases were settled and that he never discussed the            
          settlements with either Mr. McWade or Mr. Alexander.                        
               Mr. Sims denied that Mr. DeCastro passed information to the            
          Government regarding Mr. Izen's trial strategy or that                      
          Mr. DeCastro otherwise acted as a "mole" or "plant" for                     
          respondent with respect to the Kersting test cases.                         
               6.   Mr. DeCastro                                                      
               Mr. DeCastro testified that the settlement agreement that he           
          negotiated with Mr. McWade assured the Thompsons of the better of           
          the pretrial settlement or the outcome in the trial of the test             
          cases and that the agreement was not contingent on Mr. Sims' best           
          efforts.                                                                    
               Mr. DeCastro testified that the final revision to the                  
          Thompson settlement was agreed to before the trial of the test              
          cases, that the revision was made to account for the attorney's             
          fees that Mr. Thompson would incur in the trial of the test                 
          cases, and that Mr. Thompson's participation in the Bauspar                 
          program was not the basis for the revision.                                 



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