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documents from the IRS, or to simply turn the documents over to
Kanter. TACI and PSAC had a standing policy of refusing to turn
documents over to anyone other than their owner.
Kanter’s campaign of obfuscation and delay was particularly
evident during summons enforcement proceedings. The District
Court, in two separate rulings, concluded Kanter failed to
cooperate, acted in bad faith, and allowed documents to be
destroyed even after the IRS summonses for those documents had
been issued. First, the District Court observed: (1) Weisgal
testified that, after receiving a summons to compel production of
documents, some summoned documents relating to the Kanters had
been turned over to TACI, and some documents were discarded as
part of an alleged 3-year record retention policy;124 and (2)
Gallenberger testified that she disposed of some documents
related to Kanter after receipt of the IRS summons. United
States v. Administration Co., 74 AFTR 2d 94-5252, 94-2 USTC par.
50,479 (N.D. Ill. 1994). In addition, the District Court went on
to conclude that Kanter acted in bad faith inasmuch as he first
promised to produce the documents sought from TACI, PSAC, THC,
and other Kanter-related entities and then abruptly asserted in
early February 1994 that the entities in question were third-
124 The alleged record retention policy was, at best,
applied inconsistently. In any event, the alleged policy
provided no excuse for destroying documents that were the subject
of an outstanding IRS summons.
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