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informing them of developments in the ongoing litigation. He
said: “I had reason to believe that the Appeal of Judge Goffe’s
decision at the 9th Circuit [Court] of Appeals in San Francisco
was just around the corner. It did not come about that quickly,
as you know.” Mr. Kersting noted the misconduct of Messrs. Sims,
McWade, and DeCastro in entering into and not disclosing the
Thompson settlement and added: “It threw the appeals schedule
into turmoil and motions had to be filed to ask for an extension
of time for filing the Appeal.” Mr. Kersting advised:
You had stipulated to go along with the outcome of the
test cases including Thompson and Cravens which
entitles you to ask for the same concessions arranged
by the Revenue Service to Thompson and Cravens. An
arrangement whereby $100,000.00 of taxes allegedly owed
were reduced to a mere $15,000.00.
This “Dear Friend” letter concluded by disclosing that
relations had soured between Mr. Kersting and the “Henry Kersting
Tax Defense Group” of Messrs. O’Donnell and Jones. Mr. Kersting
explained:
I anticipate that tension will build now between
O’Donnell and our attorneys and me. We are on a
collision course which might lead to litigation. There
will be attempts by either Mr. O’Donnell or Mr. Alan
Jones to alienate you from us. Frequent efforts have
been made already verbally. Remind yourself that you
are lined up at present with a proven legal team of Joe
Izen and Butch Bradt. They have kept the squeezers at
the Revenue Service away from us for many years. They
will continue to protect us and lead us out of the
quagmire eventually. They will do it at a cost much,
much less than projected by Mr. O’Donnell.
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