Geoffrey K. Calderone, Sr. - Page 19

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          interest or other violation of the ABA Model Rules of                       
          Professional Conduct * * * [rule] 3.7”.  See Rule 24(g).                    
                            ____________________________                              
               We conclude that petitioners have not met their burden of              
          introducing evidence as to specific and credible facts which                
          would lead us to conclude that a fraud was perpetrated which                
          “[subverted] the integrity of the court”.  In re Intermagnetics             
          Am., Inc. 926 F.2d 912, 916 (9th Cir. 1991).                                
               In so concluding, we note a split of authority between two             
          Courts of Appeals as to whether prejudice is a necessary element            
          of fraud on the Court.  Compare Dixon v. Commissioner, 316 F.3d             
          1041, 1046 (9th Cir. 2003), revg. T.C. Memo. 1999-101, with                 
          Drobny v. Commissioner, 113 F.3d 670 (7th Cir. 1997), affg. T.C.            
          Memo. 1995-209.  Without deciding that prejudice is an element of           
          proving fraud on the Court, we find that petitioners have not               
          established facts proving prejudice.  On the contrary,                      
          petitioners were represented by independent counsel, as well as             
          by Jacob.  We could not find prejudice given the presence of                
          Hesselbacher.  We therefore hold that petitioners have failed to            
          meet their burden of showing a fraud on the Court sufficient to             
          set aside a decision entered over 1� years before they moved to             
          vacate it.  We have considered all of the arguments of the                  









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