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Mr. Kersting told Mr. Seery that he considered it "mandatory"
that the Thompsons be removed as test case petitioners. On
September 24, 1986, Mr. Kersting again wrote to Mr. Seery,
reminding him of the need to remove the Thompsons from the list
of test cases. During this period, Mr. Thompson began talking
with other Kersting program participants about filing a class
action lawsuit against Mr. Kersting.
On January 1, 1987, Mr. Kersting wrote to Bill Witthorne, a
Kersting program participant, requesting help in dealing with
Mr. Thompson. Mr. Kersting's letter states in pertinent part:
Yet, I consider it important that someone would bring
home to Jack the dangers of the action he has in mind.
He has been hoodwinked by the attorneys out in
California and I think he is blind to the
ramifications. Can you think of anyone in California
who is close to Jack and willing to talk to him?
That same day Mr. Kersting wrote to Benness M. Richards, another
Kersting program participant, stating in pertinent part:
We have been unsuccessful over the last six months or
so to convince Jack that he will be better off with the
legal representation provided by us. Neither has
anyone be [sic] able to bring home to him that the IRS
does NOT make him a better deal than offered to all the
other Petitioners.
On March 10, 1987, Mr. DeCastro and Mr. Huestis informed
Mr. Thompson that Mr. Kersting would not return the Thompsons'
promissory notes. Mr. DeCastro indicated that he wanted to
discuss the possible involvement of his firm in bringing legal
action against Mr. Kersting.
On April 10, 1987, Mr. Thompson wrote a letter to other
Kersting program participants, saying that Mr. Kersting had
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