-18- United States v. Powell, 835 F.2d 1095, 1098 (5th Cir. 1988). While they argue that Cox had the requisite firm indication of fraud by virtue of the fact that he entered in the history sheet that “I believe TP has submitted a fraudulent financial statement with regards to vehicles, Income and possibly Real Property”, we do not believe that this entry establishes that Cox had a firm indication of fraud as to petitioner within the meaning of IRM section 4565.21(1). We read that entry in the context of the record as a whole as expressing Cox’s then serious suspicion that petitioner had engaged in an act that could be fraudulent but which had to be explored further to determine whether it was in fact fraudulent. Such a general suspicion of fraud is not a firm indication of fraud for purposes of IRM section 4565.21(1). See United States v. Peters, supra at 455-456 (firm indication of fraud in the context of IRM section 4565.21(1) is different from an initial indication of fraud and is more than a mere suspicion of fraud); cf. United States v. McKee, supra at 543; United States v. Caldwell, 820 F.2d 1395, 1402-1403 (5th Cir. 1987). Our reading of that entry is supported by Cox’s credible testimony that he did not at the time of the entry believe he had the requisite firm indication of fraud to refer the matter to CID. Our reading is also supported by our finding that Cox did not know when he made the entry whether petitioner’s omission of the house and vehicles from his financial statements was proper.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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