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forth herein depending upon the proof available at the
time of sentencing.
Also in 1995, the IRS levied on proceeds from the sale of
paintings that had been consigned to Sotheby’s. In March 1995,
Blue Lotus instituted a wrongful levy action in the U.S. District
Court for the Southern District of New York to recover the
proceeds seized by the IRS from the sale of the paintings
consigned to Sotheby’s. In February 1996, Blue Lotus instituted
a wrongful levy action in the U.S. District Court for the
Northern District of New York, alleging that Blue Lotus was the
rightful owner of the Claverack property. During the course of
the district court litigation, D’Aunay represented that he and
his brother were the owners of Blue Lotus. D’Aunay also gave
misleading testimony about his relationship to petitioner. After
the U.S. District Court for the Southern District of New York
expressed doubts as to the credibility of D’Aunay, Blue Lotus
agreed to dismissal of both wrongful levy suits with prejudice.
In relation to dismissal of the litigation in the U.S. District
Court for the Northern District of New York, the parties
stipulated and the court ordered:
This dismissal shall operate as an adjudication on
the merits that the plaintiff Blue Lotus Holdings
Limited, Inc. is the alter ego and nominee of Renee
Trupin, a/k/a Renee Virginia Cornelius, a/k/a Renee
Daunay.
On February 12, 1999, petitioner filed a Form 8857, Request
for Innocent Spouse Relief. The determination that is the basis
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