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the Tax Court; or (2) the agreed decisions based on the
settlements of their test cases.
Messrs. Sims and McWade were the only persons in the
Honolulu District Counsel Office with knowledge of the Thompson
and Cravens settlements before and during the trial of the test
cases. Other than Mr. Stevens no one else within the Internal
Revenue Service was aware of the Thompson and Cravens settlements
before or during the trial of the test cases up to the times that
the Court issued its Dixon II opinion and entered the initial
decisions in the test cases.
Before the trial of the test cases, Mr. McWade intentionally
misled the Court, with the complicity of Mr. DeCastro, by not
disclosing the settlement of the Thompson cases when he moved to
set aside the Thompson piggyback agreements. Messrs. Sims,
McWade, and DeCastro intentionally misled the Court regarding the
status of the Thompson cases at the trial of the test cases.
When Mr. Thompson alluded to his settlement during his testimony
at the trial of the test cases, Mr. McWade interrupted Mr.
Thompson in order to divert him from the subject and thus
intentionally prevented Judge Goffe from learning about the
Thompson settlement. Messrs. Sims and McWade also intentionally
misled the Court regarding the status of the Cravens cases at the
trial of the test cases.
The decisions entered in the Thompson cases provided for
agreed reductions in the Thompsons' tax liabilities for 1979,
1980, and 1981 that generated refunds of tax and interest that in
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