Geoffrey K. Calderone, Sr. - Page 2

                                        - 2 -                                         
                    J purported to form a qualified employee stock                    
               ownership plan for Ps.  R determined deficiencies, and                 
               J, on behalf of Ps, petitioned this Court.  R believed                 
               J had a conflict of interest under Rule 24(g), Tax                     
               Court Rules of Practice and Procedure.  J informed Ps                  
               as to his potential conflict of interest, received Ps’                 
               informed consent to continue representing them in the                  
               proceeding, and retained H to represent Ps as co-                      
               counsel.  R informed the Court of J’s potential                        
               conflict of interest during a conference call and in a                 
               pretrial memorandum.  The cases settled before trial,                  
               decisions were entered, and these decisions are now                    
               final.  Ps move the Court to vacate the decisions,                     
               asserting primarily that R and J did not adequately                    
               inform the Court of J’s potential conflict of interest,                
               which, in turn, constituted fraud on the Court.                        
                    Held, Ps’ motion will be denied for failure to                    
               establish a fraud on the Court.                                        


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               LARO, Judge:2  Petitioners move the Court for leave to file            
          a motion under Rule 1623 to vacate the stipulated decisions which           
          were entered in these cases on February 21, 2002.  The motion               
          asserts that those decisions were the result of fraud on the                
          Court.  Following an evidentiary hearing on the substance of                
          petitioners’ motion, we decide whether petitioners have                     
          established a fraud on the Court sufficient for us to vacate                




               2 These cases were reassigned to Judge David Laro on Aug.              
          17, 2004, by order of the Chief Judge.                                      
               3 Unless otherwise noted, Rule references are to the Tax               
          Court Rules of Practice and Procedure.  Section references are to           
          the applicable versions of the Internal Revenue Code.                       





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