Carmelo Montalbano - Page 10

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              Petitioner does not suggest, however, that the plea                     
         agreement was wrongfully induced or that there was otherwise any             
         irregularity or unfairness in the criminal proceeding leading to             
         the guilty plea.  To the contrary, petitioner states that he “has            
         no desire to disavow the guilty plea--it is a fact--in this                  
         case.”  Moreover, petitioner does not dispute that he in fact                
         committed the offense charged in the criminal proceeding.                    
              Petitioner’s explanations as to why he and the Government               
         entered the plea agreement are irrelevant under the doctrine of              
         collateral estoppel.  See Manzoli v. Commissioner, T.C. Memo.                
         1989-94, affd. 904 F.2d 101 (1st Cir. 1990); see also Blohm v.               
         Commissioner, supra at 1555-1556; Stone v. Commissioner, supra at            
         221; Boettner v. Commissioner, T.C. Memo. 1998-359; Hull v.                  
         Commissioner, T.C. Memo. 1982-577.  Moreover, we reject any                  
         suggestion that collateral estoppel is inappropriate because                 
         petitioner’s purported “diminished capacity” defense was                     
         purportedly restricted by the Insanity Defense Reform Act in the             
         criminal proceeding.  For the reasons previously discussed,                  
         petitioner’s criminal conviction necessarily established that he             
         had the requisite wrongful intent, and hence the requisite mental            
         capacity, for imposition of the civil fraud penalty.  To conclude            
         otherwise would be to assume, contrary to basic principles, that             

          guilty plea partly because petitioner agreed to assist the                  
          Government in the criminal prosecution of other parties.                    

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