Jerry and Patricia A. Dixon, et al - Page 191




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               3.   Mr. Alexander                                                     
               We have found that Mr. McWade and Mr. Alexander had an                 
          understanding before the trial of the test cases that the                   
          Alexanders' tax liabilities would be reduced in exchange for                
          Mr. Alexander's informal assistance to Mr. McWade during the                
          trial.  We have also found that Mr. McWade allowed Mr. Alexander            
          to present misleading testimony to the Court during the trial               
          of the test cases in response to Mr. Izen's question whether                
          Mr. Alexander had an agreement with Mr. McWade for the reduction            
          of his tax liabilities.  Although Judge Goffe was aware that Mr.            
          Alexander was hostile towards Mr. Kersting and that Mr. Alexander           
          had offered an affidavit to Mr. McWade regarding the Kersting               
          programs, Judge Goffe, had he been informed of Mr. Alexander's              
          understanding with Mr. McWade, might have precluded Mr. Alexander           
          from testifying at the trial of the test cases or at least taken            
          that understanding into account in weighing Mr. Alexander's                 
          credibility.  Consequently, we must consider whether                        
          Mr. Alexander's testimony was material to the outcome in Dixon              
          II.                                                                         
               Mr. Alexander was called to testify in part to rebut                   
          Mr. Kersting's testimony regarding the First Savings transaction.           
          Indeed, Mr. Alexander directly contradicted Mr. Kersting as to              
          whether Federal regulators ever approved Investors Financial as a           
          holding company for First Savings.  While Judge Goffe concluded             
          that Mr. Kersting was not a credible witness, our review of Dixon           
          II convinces us that Mr. Kersting's lack of credibility was by              

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