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C. Brian J. Seery
In early 1982, Brian J. Seery (Mr. Seery) began assisting
Kersting program participants with issues arising from the audit
of their income tax returns. On April 14, 1982, Mr. Kersting
issued a letter to Kersting program participants informing them
that they soon would receive a letter from the Commissioner
proposing to disallow their Kersting program interest deductions.
Mr. Kersting advised program participants that they should not
remit any amount to the Internal Revenue Service until their
liability was determined in court. On February 15, 1983, Mr.
Kersting issued a letter to Kersting program participants stating
in pertinent part: "I trust that you have placed the tax
retrievals which we have accomplished for you over the years into
profitable investments and that you are receiving a reasonable
rate of return. You will not lose any ground if your funds earn
at least a return equal to the interest charges imposed by the
IRS from time to time."
On March 1, 1985, Mr. Kersting issued a letter to Kersting
program participants stating that he had retained Mr. Seery to
represent them in the Tax Court at no charge to the individual
petitioners.19 The letter requested that each Kersting program
participant provide written authorization for Mr. Seery's
19 Initially, Mr. Kersting or the entities that he
controlled paid the legal fees associated with the Tax Court
litigation. Later, however, some Kersting program participants
began paying $100 per month to a legal defense fund managed by
Mr. Kersting.
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