Jerry and Patricia A. Dixon, et al - Page 110




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               In a response to respondent's motion, Mr. Sticht alleged               
          (and the record now shows) that Mr. Sticht's clients received               
          unsolicited phone calls and written communications from                     
          Mr. Kersting and from Joseph A. Peterman (Mr. Peterman), a                  
          Kersting program participant and nontest case petitioner,84                 
          throughout these proceedings encouraging them to ask Mr. Sticht             
          to cooperate and otherwise present a unified case with the test             
          case and nontest case petitioners represented by Messrs. Izen and           
          Jones, promising financial assistance in the form of                        
          disbursements from a "legal defense fund" in exchange for such              
          cooperation, and ridiculing Mr. Sticht's representation of his              
          clients.85                                                                  
               On January 30, 1997, the Court issued an order denying                 
          respondent's motion.  Although the Court expressed concern over             
          Mr. Sticht's allegations, the Court was not persuaded that the              
          activities in question satisfied the legal definition of witness            
          intimidation.  See, e.g., Griffith v. Commissioner, T.C. Memo.              


          84  Mr. Peterman currently has eight cases docketed with                    
          the Court all of which appear to involve Kersting adjustments:              
          docket Nos. 1676-84, 36324-85, 19467-86, 23493-90, 12628-91,                
          7155-92, 15005-93, and 3029-94.  Mr. Peterman executed piggyback            
          agreements in the first five dockets listed above.                          
          85  Mr. Kersting's various letters to Mr. Sticht's clients                  
          are included within the exhibits associated with the parties'               
          fourth supplemental stipulations of facts, filed Nov. 27, 1996.             
               On Aug. 11 and Aug. 18, 1997, Mr. Sticht filed a  Status               
          Report and a First Supplemental Status Report, respectively,                
          attaching thereto copies of letters, some of which contain                  
          obscene and inflammatory statements, that Mr. Peterman had sent             
          to Mr. Sticht and his clients.                                              

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