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note which you executed in favor of FEDERATED FINANCE
COMPANY to facilitate the acquisition of your stock in
First Savings & Loan Ass. We will ask you to pay a
pre-payment penalty on your mortgage on the house in
Wahiawa.
We will NOT arrange for you a capital gain in your
BAUSPAR HOLDINGS INC. stock which I had considered--
even though not due you because of premature withdrawal
from the Plan--and we will NOT render assistance in
saving you capital gains taxes on the re-capture of
basis in your stock holdings.
We will NOT provide legal assistance free of cost to
you any longer in US Tax Court proceedings. You will
have to retain your own attorney to make an appearance
for you on February 9/1987 in US Tax Court.
By letter dated August 24, 1986, Mr. Kersting notified
Mr. Seery that he expected to be in litigation with the Thompsons
and directed Mr. Seery not to "render any services, at our
expense," to the Thompsons.
By letter dated August 28, 1986, Mr. Huestis notified
Mr. Moseley that he represented the Thompsons in connection with
their Kersting transactions and the pending Tax Court litigation.
Mr. Huestis advised Mr. Moseley to direct all future
communications regarding the Thompsons to Mr. Chanin.32
By letter dated September 5, 1986, Mr. Kersting again
notified Mr. Seery of his dispute with the Thompsons and
the likelihood of litigation. Mr. Kersting included a copy
of Mr. Huestis' August 28, 1986, letter to Mr. Moseley.
32 As previously mentioned, this was around the time that
Mr. Seery began the process of withdrawing as counsel for the
Thompsons, following Mr. Huestis' notification to Mr. Seery that
the Thompsons were in the process of retaining substitute
counsel.
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