Jerry and Patricia A. Dixon, et al - Page 104




                                       - 185 -                                        

               Mr. Izen testified that he met Mr. DeCastro, with                      
          Mr. Hongsermeier and Mr. Bradt, in a hotel room on the eve of               
          trial of the test cases.  Mr. Izen testified that he discussed              
          confidential matters with Mr. Hongsermeier in Mr. DeCastro's                
          presence that he would not have revealed to Mr. DeCastro had he             
          known of the settlement that Mr. DeCastro had negotiated on                 
          behalf of the Thompsons.  Mr. Izen testified that he was aware              
          that respondent planned to rely on the so-called comfort letters            
          at the trial of the test cases, inasmuch as some of the letters             
          were included in stipulations of fact filed with the Court, and             
          that he informed Mr. DeCastro that he would offer evidence of               
          collection actions brought by various Kersting companies against            
          Kersting program participants to counter the comfort letters.               
               Mr. Izen testified that Mr. DeCastro grabbed notes out of              
          his hand during the trial of the test cases, that Mr. DeCastro              
          was in a position to overhear Mr. Izen's conversations with his             
          witnesses during the trial of the test cases, and that Mr. Izen             
          observed Mr. DeCastro conducting a "private" conversation with              
          Mr. McWade during the trial of the test cases.  Mr. Izen                    
          testified that his allegations in oral argument before the Court            
          of Appeals for the Ninth Circuit in the DuFresne appeal that                
          Mr. DeCastro was a "mole" or "plant" for respondent during the              
          trial of the test cases were not based upon personal knowledge              
          but that Mr. Izen only wanted the opportunity to prove the point.           
          Mr. Izen did not provide any further evidence that Mr. DeCastro             



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