Bruce L. Helmich - Page 5




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               At trial, petitioner changed his story and claimed that he             
          never received the $10,638.  We summarize petitioner's testimony            
          and the sequence of events which he alleges occurred, as follows.           
               As noted, petitioner worked part-time for Vaughan as a legal           
          clerk.  He received his W-2 and dated his Federal income tax                
          return on January 27, 1997.  After petitioner filed his return,             
          Vaughan gave petitioner the Form 1099-MISC which reported the               
          amount of $10,638 as nonemployee compensation.  Vaughan explained           
          to petitioner that he needed to report this amount to reduce his            
          taxes.  Petitioner protested that he did not receive the money.             
          Vaughan said not to worry because he would pay the tax when it              
          came due.                                                                   
               Petitioner was applying for admission to the Florida Bar at            
          the time these events allegedly occurred.  Petitioner had been              
          convicted for the felony of extortion.  His bar application had             
          been pending before the Florida Supreme Court for 4 months.                 
          Petitioner claims that Vaughan knew this, and when petitioner               
          questioned Vaughan about the Form 1099-MISC, Vaughan let him                
          "know in a very unsettled way" that if petitioner had any                   
          problems with accepting the Form 1099-MISC, then Vaughan would              
          "probably have trouble" with petitioner's employment and would              
          have to notify the Bar about it.                                            
               Petitioner considered himself between "a rock and a hard               
          place."  Petitioner never reported the alleged blackmail.  He               





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