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1. I have not settled any of the Kersting cases
with you.
2. The government has not made any new, blanket
offer to settle these cases (other than our old 7%
offer); nor has the government made any offer to wholly
or partially concede any of the issues presented by
these cases. To the extent that you may disagree with
this statement, any such offer of concession that you
believe has been made by me or any other government
official is hereby withdrawn.
3. We do not have a workable basis for settlement
of any case or any group of cases. If you should
attempt to represent to the Court that you have such a
basis, either in order to obtain a continuance of the
trials in this matter or to attempt to force the
government into unagreed-to settlements or concessions,
I will dispute this firmly.
Before the start of the Maui session, Judge Goffe held a chambers
conference with Messrs. Chicoine, Hallett, Sims, McWade, O'Neill,
and DeCastro. Although Mr. Chicoine told Judge Goffe that the
parties had reached a basis of settlement, Mr. Sims denied that
there was a settlement. Mr. Sims said that he had "pulled
the plug" on a proposed 50-percent settlement because
Mr. Kersting had interfered with the negotiations.
4. Revival of 20-Percent Settlement Offer
During spring 1987, Mr. Chicoine continued to explore with
Mr. McWade the possibility of a global settlement. By letter
dated April 13, 1987, Mr. Chicoine provided Kersting program
participants with a detailed status report addressing
developments at the Maui session as well as settlement
negotiations. Mr. Chicoine's letter also stated that the firm's
representation of nontest case taxpayers was not intended to
extend to general representation in all matters but was limited
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