Zinovy Brodsky - Page 135




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                    Mr. Sutton’s Testimony                                            
               We do not believe that Mr. Sutton had personal knowledge of            
          the facts surrounding the items which were reported in the joint            
          returns of petitioner and Ms. Brodsky for the years at issue and            
          about which he testified at the further trial in this case.  In             
          this connection, Mr. Sutton acknowledged that certain of the                
          items that were reported in the joint returns for 1991 and 1992             
          were based upon summary documents that he did not prepare.  In              
          addition, Mr. Sutton misrepresented during his testimony what               
          documents he had shown to respondent’s counsel and one of respon-           
          dent’s revenue agents sometime during the week before the further           
          trial in this case.  It was only upon questioning by respondent’s           
          counsel and by the Court that Mr. Sutton acknowledged that he had           
          made such a misrepresentation.                                              
                    Mr. Guterman’s Testimony                                          
               Based on our observation of Mr. Guterman at the further                
          trial, including our observation of his demeanor, we did not find           
          him to be credible.  In addition, although Mr. Guterman claimed             
          to have personal knowledge with respect to each of the matters              
          about which he testified, we have serious reservations about that           
          claim.26                                                                    





               26Mr. Guterman admitted that his testimony with respect to             
          at least one document was based upon the representations of                 
          petitioner as to that document, and not on his personal knowl-              
          edge.                                                                       




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