Jerry and Patricia A. Dixon, et al - Page 147




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          Mr. DeCastro's legal fees for representing the Thompsons at the             
          trial of the test cases, by testifying that the Thompson                    
          settlement was attributable to the Thompsons' participation in              
          the Bauspar program, and by trying to cover up the bases for the            
          stipulated decisions that were entered by the Court in the                  
          Alexander cases.                                                            
               Mr. McWade also failed to disclose to the Court his                    
          understanding with Mr. Alexander and allowed Mr. Alexander to               
          offer misleading testimony to the Court during the trial of the             
          test cases.  Although we are unable to find that Mr. McWade and             
          Mr. Alexander agreed before the trial to a specific reduction of            
          the Alexanders' tax liabilities in exchange for Mr. Alexander's             
          assistance to Mr. McWade during the trial of the test cases, we             
          are convinced that Mr. McWade and Mr. Alexander had a general               
          understanding that the Alexanders' tax liabilities would be                 
          reduced.  In this regard, Mr. Alexander misled the Court when he            
          ambiguously answered "Specifically, no." to Mr. Izen's question             
          at trial whether Mr. Alexander had an agreement with Mr. McWade             
          to reduce his tax liabilities.99                                            


          99  Mr. Alexander's response could be understood as a                       
          statement (consistent with the Court's finding in these cases)              
          that, although Mr. Alexander did not reach an agreement with                
          Mr. McWade for a specific reduction in the amount of his tax                
          deficiencies, he and Mr. McWade had a general understanding that            
          Mr. Alexander's tax liabilities would be reduced.  Considering              
          the ambiguity in Mr. Alexander's response, it seems surprising              
          that Mr. Izen did not pursue the matter further.  In any event,             
          by virtue of Mr. McWade's duty of candor toward the Court, see              
          ABA Model Rules of Professional Conduct rule 3.3, Mr. McWade was            
          obliged to disclose his understanding with Mr. Alexander to the             
          Court.                                                                      
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