Free Motion for Partial Summary Judgment - District Court of Federal Claims - federal

Case 1:05-cv-00999-MMS

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EXHIBIT 1

DECLARATION OF JOHN LINDQUIST

Case 1:05-cv-00999-MMS
Minu'. Ord.. Form ¡0b/71

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EXHIBIT B

DOCKET No. 16571-04

United States District Court, Northern District of Illnois
Name of Assigned Judge

or Magistrate Judge

Wayne R, Andersen
03 C 7226

Slttlni: Judce If Other
than Assigned Judi:e

Suzane B. Conlon

CASE NUMBER

DATE
In Re: John Does

10/14/2003

CASE

TITLE
(a) I In the following box indicate the part fiing ihc motion. e.g.; plaintiff. defendat, Jrd pa plaintiff. and (b) slate briefly die nare

MOTION:

or the motion being preenicd.)

I

DOCKET ENTRY:

(i)
(2)
(3) (4)

(5)
(6)

(7)
(8) (9)

o o o o o o o
o o

Filed motion of( use listing in "Motion" box above.)
Briefin support or

Answer brief

motion due_, to motion due_, Reply to answer briefdue_,

Rulinglearing on _ set for _ at_,
Status hearing(heldlcontiued to) (set for/re-set for) on _ set for _ at_,
Pretrial conference(heldlcontinued to) (set for/re-set for) on _ sèt for _ at_.

Trial(set for/re-set for) on _ at_.
(Bench/Jur tral) (Hearg) held/continued to _ at _'

This cas is dismissed (withwithout) prejudice and without costs(by/agreementlpuruant to)
o FRCP4(m) 0 Local Rule 41. 0 FRCP41(a)(I) 0 FRCP4l(a)(2).

(i 0) . (Other docket entry) The government's ex parte petition for leave to serve Internal Revenue Service

"John Doe" summons is granted. ENTR ORDER.

(11) .

(For fuher detail see order attached to the original miute order.)

No notices required. advised in open cour.
No notices reuired.

./ ./
./

Noiices mailed by judge's staff.
Notified counsel by telephone.

Dockeiing 10 mail noiices.

z

d:e doClec

.. ..
Ii

EXHIBIT
1
~ockeiig depiY iniia
10/14/00)
da.. mailed no.

Mail AO 450 form.
Copy to judge.
courtroom deputy's iniiials

i:

i
Date/iime received in

CB

CB

central Clerk's Offce

ma-i dcpuly ii~ial

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UNITED STATES DISTRICT COURT NORTHRN DISTRCT OF ILLINOIS EASTERN DIVISION
IN THE MATTER OF THE TAX
LIAILITIES OF:

JOHN DOES, United States

taxayers who, durg any par of the period
Januar 1, 1996 through October 15, 2003, participated in a transaction which was or

later became a "listed transaction" or other
"potentialy abusive tax shelter" organized or

sold by the law fi of Sidley Austin Brown
& Wood LLP and its predecessor, Brown &
Wood LLP.
I

ORDER GRAG UNITED STATES' EX PARTE PETITION FOR
LEAVE TO SERVE IRS "JOHN DOE" SUMONS
Upon the ex parte petition of

the United States of America for leave to serve a

"John Doe" summçms, with the declaration of Richard Bosch and the exhibits

presented in support of the petition, this Cour has determined: (1) that the
summons relates to the investigation of an ascertainable group or class of persons;

persons
(2) that there'is a reasonable basis for believing that such group or class of

may fail or may have faied to comply with various provisions of the Internal

Revenue Code; and (3) that the information sought to be obtained from the
examination of the records and the identity of

the persons with respect to whose

liabilty the summons relates are not readiy available from other sources. It is,
therefore

ORDERED, ADJUDGED and DECREED that the Internal Revenue Service,

through an authorized offcer or agent, may serve the "John Doe" summons. a copy

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)
"') of

J

. i

which was presented concurently with the petition, on Sidley Austi Brown &
Wood LL; and
IT is FURTHR ORDERED that a copy of

this order, the petition,

declaration with exhbits and supporting memorandum be served with the
summons served pursuant to this order.

DATED thitday of October, 2003, at Cb.~ago, Illinois.

~~.~

STATES DISTRICT JUGE

2

... ..._ _.___, - ~... ..._.__..... _.... n' ..~ ..._.... ...._......- - . .

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EXHIBIT 2
DECLARATION OF JOHN LINDQUIST

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Summons
In the matter of the ta liabilities of 10hn Does .. see below

DOCKET No. 16571-04

Internal Revenue Service (Division); Large and Mid-Size Businss Diviion

Industr/Area (name or number): Financial Servces Indust
Periods: January 1, 1996 thgh October IS, 2003

The Commissioner of Internal Revenue
To: Sidley Austin Brown & Wood, LLP (formerly Brown & Wood, LL)
At: Bank One Plaz i 0 South Dearrn Street, Chicago, 1L 60603
You are hereby summoned and required to appear before Revenue Agent Robert K. Schoder (I,D. No. 36-09404) or authoried designee

an offcer of the Internal Revenue Servce, to give tetimony and to brng with you and to produce for exmInation the following books, recos, papers,

and other data relating 10 the tax Uabftty or the collection of the lax liabilty or for the purpse of Inquirng inlo any offense cònnecled with the
admInistrtion or enrorcement of the Intemal revenue laws cocernin the person Identified above for the periods sh.

S~ Attached Rider.

40 IN TH MA TIR OF TH TAX LIAILITS OF JOHN DOES, United Slates taxpayers who, dur any par of the period
January I. i 996 though_October i 5, 2003. pariciated in a trnsaction which wa or later became a "listed trsaction" or other

"potentially abiisive ta slièlter" orgazed or sold by the law fi of Sidley Austin Brown & Wood LLP and its predecessor,
Brown & Wood LL.

Do not write in this space

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i

EXHIBIT
2

I
Business address and telephone number of IRS offcer before whom you are to appear: Internal Revenue Servce, 2001 Buttrfeld Road, 4512 WSB, 13th Floor, Downers Grove, It 60515 Telephone: (630) 493-5077
Place and time for appearance at Internl Revenue Service, 2001 Butterfeld Road 4512 WSB, 13th Floor, Downers Grove,

1L 60515

fj IRS
Departent of Uie Treasury

day of 0 c-,"~ ~ e..l i 2003 at' 0 ~O~ o'clock ~ m.
evenue Code thls~:ay of () eta b.i , , 2003 .

Internal Revenue ServIce

ww.irs.gov
Form 2039 (Rev, 12-2001)

SL,"..~~ ..","" ~ ii. ~ .
Signature of approving offcer (if applicable)
Title
OrIginal - to be kept by IRS

. .-r ~.. /',A. . 4!.~

Catalog Number 21405J

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Service of Summons, Notice and Recordkeeper Certificates
(Puruintio sect 7803 Intamal RlMnue COd.)

I certify that I served the summons shown on the front of this form on;

Dat
o L To \:.e r

\ ~I 6'oÐ 3-

.. II ~l 0 0 0\ ~ I rRTe

1, b( I certfy th I handed a copy of the summons, which contaned the attestatin required by

§ 7603, to the person to whom it wa dircted.

How

2. 0 I cert that' left a copy of the summons, whic contained the attestation required by
§ 7603. at the last and usual place of aboe of the person to whom it was direcd. I

Summons
Was Served

left

the coy wl the following person (If any):

3. CI I certfy that I sent a copy of the summons, which contained the attestaon required by
§ 7603, by certed or registered mail to the last known acldress of the person to whom It I sent the summons to th foUowing addres:
was directed, that pers being a third-prt recordkeeper WIin the meaning of § 7603(b).

$~%t,~
Date of giving Notice:
Name of Noticee:
Address of Noticee (If mailed):

I :lJ-c.. ~ ,,~....
whether or not recorosof the busines trnsactons or affirs of an identified per5n have been made or kept

4. This ceificate is made to show compliance with IRe
Section 7609. This cecate does not apply to summonses

served on any offcer or employee of the person to whose
liability the summons relates nor to summonses in aid of

collection, to determine the identity of a person having a
numbered accont or simllat arrngement. or to deterine

I certfy that. wiin 3 days of serving th summons, I gave notice (Part 0 of Fonn 2039) to the person named
below on the date and in the manner Indicated.

TIme:

How

o I gave notice by certed or registered mail
to the last known address of the noticee.
o I

o I gave notice by handing it to the notice.

Notice

o In the absence of a last know addres of the
naticee, I

Was
Given

left the notice at the last and ùsual place
of abode of the noticee. I left the

left the notice with the person summoned.

copy wit

the followIng penon (if any).

,ØNo notice Is required.

Signatul"
I Title.

I ærtif that the perod prescribed for beginning a proceeding to quash this summons has exired and that no such proceeding was instiutd or that the noticee consents to the exaination.
Signature
I í1t1e.

Form 2039 (Rev, 12-2001)

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RIDER
Please produce the name, address and taxpayer identification i:umber for each United States taxpayer who, .during any part of the period January 1T 1996 through October 15, 2003, participated in a transaction which was or later became a "listed transaction n or other "potentially abusive tax shelter" organized or sold by

the law finm of sidley Austin Brown & Wood LLP and its ·
predecessor, Brown & Wood LLP.

Defini tions
As a guide to your compliance, as used herein:

A. The term "potentially abusive tax shelter" is defined by 2 6
U.S.C. § 6112 and Treas. Reg. § 301.6112-1(b), without regard to the effective date of this regulation; B. The term "listed transaction" is defined by Treas. Reg. §

301.61il-2(b) (2) and 301.6112-1(b) (2) (i) (A), incorporating
4 (b) (2), without regard to the effective dates of these

by reference a transaction defined in Treas. Reg. § 1.6011-

regulations.

C. The terms "organizer" and "seller" are defined by Treas. Reg. § 301.6112-1(c)r without regard to the effective date of this regulation.

,,,

.:

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- ... .. -1.. 6..6 .
mJ17~'"

! ~ SI.13rvice of Summons, Notice ~ ~ ,..(~..
(Pursuant to secton 7603, Internal Revenue Coe)

alid Recordkeeper Certificates
\£i ?-oÐ3
I Time Ii,' 0 0 lA w\

Dare '
How

I certif that I served 1I1e summons shown on the front of this form on:

o L 1-0 \?.l i-

1. .. I certfy that I handed a copy of the summons, which contained the attestation required by
§ 7603, to the person to whom it was directed,
2. 0 I certfy that I

Summons
Was

left a copy of the 'summons, which contaned the attestation required by left the copy with the following person (if any):
§ 7603, at the last and usual place of abode of the person to whom it was direced. I

Served

3. 0 l cert!)- that I sent a copy of the summons, which contained the attestaon required by
§ 7603, by certed or registered mail to the last known address of the person to whom it
was directed, that person being a third-part record

S~~.'M, ~
4. This certficate is rr ade to show compliance wi IRe
Section 7609, This cart llcate does :iot apply to summonses

keeper wiin the meaning of § 7603(b).

I sent the summons to the following address:

I ~J-".. ~"- ~-t..
whether or not records of the business transactions or

served on any offcer ( . employee of the person to whose liabilty the summons r31ates nor to summonses in aid of
collection, to determlni, the identit of a person having a
numbered account or ~ i milar arrngement, or to deteliine

affairs of an identied person have been made or kept.
I certfy that, withir 3 days of serving the summons, I
gave notice (Part D of Form 2039) to the person named below on the date and in the manner indicaed,

Date of giving Notice:
Name of Noticee: _.

Time:

Address of Notlcee (il mailed):

How

Notice Was Given

o i gavi: notice by certified or registered mail to the last known adçlress of the noticee,
o I

o I gave notice by handing it to the noticee,
o In the absence of a last known address of the

left 1 he notice' at the last andusual place

noticee, I

of abi: de of the noticee. i left the copy wit
the fo owing person (if any).

left the notice with the person summoned.

;a No notice is fequifed.

Signature
I Trte

I certif that the perio:1 prescribed for beginning a proceeding to quash this summons has expired and that no
such proceeding was instituted or that the noticee consents to the examination.
Signature
I Trte

Form 2039 (Rev. 12-2001)

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EXHIBIT 3

DECLARATION OF JOHN LINDQUIST

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Filed 05/12/2006 Page 11 of 43 EXHIBIT C DOCKET No. 16571-04

SIDLEY AUSTIN BROWN & WOOD LLP
BEIJING
BRUSSELS

787 SEVENTH AVENUE NEW YORK, NEW YORK 10019
TELEPHONE 212 839 5300 FACSIMILE 212 839 5599

LOS ANGELES

NEW YORK
SAN FRANCISCO

CHICAGO
DALLAS
G ENEV A

www.sidley.com
FOUNDED 1866

SHANGHAI
SINGAPORE
TOKYO

HONG KONG
LONDON

WASHINGTON, D.C.

WRITER'S DIRECT NUMBER 212 839 5537

WRITER'S E-MAIL ADDRESS

rpielrzak~sidley

CONFIDENTIAL

October 27, 2003

John A. Lindquist, Esq. Trial Attorney, Tax Division U.S. Department of Justice

P.O. Box 55, Ben Franklin Station Washington DC 20044
Re: John Doe Summons

Dear Mr. Lindquist
This letter is in response to the "John Doe summons", seeking the identities of certain taxpayers, that was served on Sidley Austin Brown & Wood LLP ("SAB&W") on October 15, 2003, pursuant to IRe § 7609(f).

As we discussed during our telephone conversation of October.23, 2003, SAB&W sent letters to all known former clients involved in specific transactions stating SAB&W's intention to disclose their identities to the IRS absent an objection from such former client. Illustrative copies of those letters are enclosed as Exhibit A. SAB&W has determined that the identities of its former clients who participated in the FLIPS, BLIPS and OPIS transactions have already been disclosed in the course of other proceedings and/or such clients have not objected to the disclosure of their identities. Because SAB&W has not been instructed to assert such a claim, and given the foregoing circumstances, we do not believe that there exists a valid claim of attorney-client privilege which prevents us from providing the identities of former clients we were able to contact who participated in the FLIPS, BLIPS and/or OPIS transactions. Accordingly, enclosed as Exhibit B are the identities of such SAB&W clients who participated in the FLIPS, BLIPS and OPIS transactions,
SIDI. AUSTN BROWN &. WOOD lL IS A DELAW ARE UMrr UABIU PARTERHIP PRAcrONG IN AFALIAllON WIT OTH SIDLE AUSTN z E X H I BIT

-

.;

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With respect to the other transactions where we are unaware of any waiver of the attorney-client privilege, we have received numerous objections from

former clients to the disclosure of their identities. In addition, there are a number of
former clients we were unable to reach, despite reasonable efforts to do so, and SAB&W is also treating those former clients as not consenting to the disclosure of their

identities,
As to these two categories of former clients, SAB&W is a stakeholder. Any potential claim of attorney-client privilege belongs to our former clients, not SAB&W, and, accordingly, our professional and ethical obligations as lawyers require that we maintain such pnvileges unless they have been waived, our clients knowingly do not object to the disclosure of their privileged information or a Court determines that no privilege is applicable. We recognize and respect the holding in United States v.

BOO Seidman, 337 F,3d 802 (7th Cir. 2003), and wil so advise the District Court. Atthe
same time, we must - absent judicial direction - guard our former clients claims of attorney-client privilege. Consequently, as noted above, we will not be producing the identities of former clients except as to FLIPS, SLIPS and OPIS,
When we spoke on October 23, we explained that SAB&W had sent letters to each identifiable former client involved in the pertinent transactions listed on the schedule attached to our letter to Mr. Bosch of the Internal Revenue SeNice dated

August 12, 2003. We call your attention to that schedule which was intended to capture
the transactions on which we understood the Service was focused. The transactions reflected in that schedule exclude transactions that involve five (5) or fewer opinions, For your ease of reference, i am enclosing as Exhibit C a copy of that letter which reflects the definition used in identifying transactions in which the IRS appeared focused at that time. Consequently, the schedule attached to the August 12, 2003 letter to Mr. Bosch did not include structures which did not fi within the definition in that letter. Following that same categorization, we did not send letters to former clients who did not participate in the transactions on the schedule and .are not treating them as within the scope of the John Doe summons. As we also noted in our August 12 letter, we did not include transactions involving distressed/high basis assets, even though they met the criteria set forth in the letter, because those transactions are not the subject of any IRS notice. Accordingly, former clients who participated in those distressed/high basis transactions did not receive the recent letter asking for their position on the attorneyclient privilege.

As we have pointed out on a number of occasions and as our conduct reflects, SAB&W has sought to cooperate with the SeNice in the course of the ongoing Section 6707/6708 examination and wishes to continue doing so, without compromising

our professional responsibilities. Consistent with our professional responsibilties,
SAB&W must assert the attorney client privilege until instructed by action or inaction that the former client no longer wishes to invoke that privilege or until a Court rules that no privilege applies. In this regard, as discussed, we propose that simultaneous with the initiation of a petition to enforce the John Doe summons, the parties seek an agreed order fr9m the Court. Under that order, SAB&W wil notify its former clients of the pending John Doe summons and ask that they either assert or waive by action or
2

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inaction any applicable privileges with respect to their identities within a fixed time period (e.g. 15 days). Enclose for your review as Exhibit D is a draft agreed order implementing such procedures. If any former clients waive by action or inaction their applicable privileges with respect to their identities, SAB&W wil then immediately produce the identities of those former clients to the SeNice, If any former clients affrm their assertion of applicable privileges with respect to their identities, they wil be

advised of the opportunity to seek to inteNene in the enforcement proceeding and
invoke their claims of privilege for consideration by the Court. Our firm would not represent these former clients, Our firm wil, of course, follow the directions of the Court as to production of those identities. This approach will allow SAB&W to respond to the summons in a manner consistent with its professional responsibiliies.
Of course, SAB&W must reseNe its right to assert any and all objections and defenses to the John Doe summons, and the other summonses issued pursuant to the Section 6707/6708 examination, including but not limited to the fact that such summonses seek information already in the possession of the SeNice, as well as the production of information that requires a legal conclusion as to the ultimate issue in

dispute in the SeNice's examination. This reseNation should not be taken as a limitation on ourcooperation with the Department of Justice or the Internal Revenue
Service; rather it is simply a recognition of our professional obligations to our former

clients.
We look forward to discussing this letter and its attachments with you

today,
Sincerely,

Ä. Robert Pietrzak

WFC:k
cc: Stephen R. Winningham, Esq.

Mr. Bisamber Misir

3

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EXHIBIT 4
DECLARATION OF JOHN LINDQUIST

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DOCKET No. 16571-04

UNTED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVSION
UNITED STATES OF AMERICA,

Petitioner,
v.

SIDLEY AUSTIN BROWN & WOOD

LLP, with respect to the matter of
the tax liabilities of:

JOHN DOES, United States
taxpayers who, durig any par of

the period Januar 1,1996 through October 15, 2003, participated in a which was or later became a "listed transaction" or other "potentially abusive tax shelter" organized or sold by the law firm of Sidley Austin Brown & Wood LLP
transaction

and its predecessor, Brown & Wood

LLP.

Respondent.
/

PETITION TO ENFORCE JOHN DOE SUMMONS . TO SIDLEY AUSTIN BROWN & WOOD LLP

The United States of America, by its attorney, Patrick J. Fitzgerald, United

States Attorney for the Northern District of Illnois, petitions this Court for an
order enforcing a John Doe Summons issued to and served upon Sidley Austin
Brown & Wood LLP.

I. Introduction
1. This. proceeding is brought pursuant to §§7402(b) and 7604(a) of

the Internal

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Revenue Code (26 U.S,C.),l to enforce a "John Doe Summons" issued to and served

upon Sidley Austin Brown & Wood LLP (SAB&W)2. SAB&W does business in this

district at Ban One Plaza, 10 South Dearborn Street, Chicago, Illnois 60603.
2. Pursuant to §7601, the Secretary of

the Treasur is directed to "cause offcers

or employees of the Treasur Department to proceed, from time to time, through
each internal revenue district and inquire aftr and concerning all persons therein

who may be liable to pay any internal revenue tax." Pursuant to §7602, the
Secretary or his delegate is authorized to summon records and testimony "(fjor the

purpose of ascertainig the correctness of any return, makig a return where none
has been made, determining the liabilty of any person for any internal revenue tax
. . . or collecting any such liability," The IRS may summon any person "the

Secretary may deem proper. . , to produce such books, papers, records or other data,

and to give such testimony, under oath, as may be relevant or material to such
inquiry." §7602(a)(2).

3. The United States makes a prima facie case for enforcement of a summons

when it demonstrates that the summons has been issued for a legitimate purpose,

that the information sought is relevant to the purose, that the summoned

i Al "§" references are to the Internal Revenue Code, 26 U,S.C" unless otherwise specifed, Al "Govt, Ex." references are to the Appendi of Exhbits submitted in support of the Petition to Enforce Summonses. Some of those exhibits have been redacted to protect
the privacy of tax shelter participants or to eliinate matters not relevant to this petition.

However, none of these exhbits have been otherwise modied and are reproduced here in

the form in which they were obtained,
20n April

30, 2001, Sidley & Austin merged with Brown & Wood LLP and is
2

referred to herein as "SAB&W."

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information is not already in its possession, and the administrative requirements
for issuance of

the summons have been satisfied. United States v. Powell, 379 U.S.

48 (1964). In addition, §7602(d) precludes the enforcement of a summons if there is

a "Justice Department referral" in effect with respect to the taxpayer under
investigation for the periods under investigation.
4. The IRS is conducting an investigation to determine the correctness of

returns fied by, and the correct federal tax liabilities of, certain United States
taxpayers who, during any part of

the period January 1, 1996 through October 15,

2003, participated in a transaction which was or later became a "listed transaction"
or other "potentially

abusive tax shelter" organized or sold by SAB&W, i.e" the

John Doe class. Revenue Agent Florence Kan has been assigned responsibilty to
gather information from which the identities of

the participants in the "potentially

abusive tax shelters" can be determied.3
5. The IRS is also investigating the role of SAB&W in organizing and selling

tax shelters to determine SAB&W's compliance with the registration and list

maintenance requirements of §§6I11 and 6112 and its potential liabilty for
penalties imposed by §§6707 and 6708, during the period Januar 1,1996 through
the present. Revenue Agent Kan has also been assigned to the promoter

investigätion of SAB&W.

3 Revenue Agent Richard Bosch was previously assigned to conduct the John Doe

investigation. In September, 2003, Revenue Agent Kan was assigned primary responsibilty for the investigation.
3

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6. To learn the identities of unknown participants in "listed transactions" and

other "potentially abusive tax shelters" organized or sold by SAB& W, as part of IRS
investigation to determine the correctness of returns filed by, and the

correct

liabilties of, participants in tax shelter transactions organized or sold by SAB& W,
on October 9, 2003, a John Doe summons was issued to SAB&W. (Govt. Ex. 1),
7. On October 14, 2003, the IRS was authorized by this Cour to serve the John

Doe summons upon SAB&W, upon the United States' Ex Parte Petition for Leave to
Serve IRS "John Doe" Summons, (Civil No, 03C-7226, N,D. II). (Govt. Ex. 2). On

October 15, 7003, the John Doe summons was served on SAB&W by delivering a
copy to Thomas W. Albrecht at the Chicago offce of SAB&W. (Govt. Ex. 1, p. 2).

8. The John Doe summons demands that SAB&W provide the identities of
United States taxpayers who, durng any part of

the period January 1, 1996

through October 15, 2003, participated in a transaction which was or later became a
"listed transaction" or other "potentially abusive tax shelter" organized or sold by
SAB&W.
9. The John Doe Summons demanded compliance by October 27,2003.

Although SAB&W has provided the identities of some tax shelter participants to the
IRS, SAB& W has not fuly complied with the John Doe summons and represents

that it has withheld the identities of over three-hundred and seventy (370)
participants in these transactions because they have failed and/or refused to

consent to SAB&W's disclosure of

their identity to the IRS.

4

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II. SAB&W was Ora:anizinf! and Sellinl! Tax Shelters

10. The Congress and the Treasur have established a statutory and reguatory
system designed to combat the use of abusive tax shelters. Two of the key statutory
provisions are the registration and list maintenance requiements of §§6111 and
6112, respectively. (See Staff of the Senate Comm. on Finance, Explanation of

the

Provisions Approved by the Committee on March 21, 1984, S. Prt. No. 98.169, VoL. I

at 425-426 (1984); see also, H.R. Conf. Rep. No. 98-861 at 982 (1984), reprinted in
1984-3 C.B. (voL. 2) 1, 236 (the relevant portions of both

reports are reproduced in

Govt. Exs, 82 & 33)1. Pursuant to §6111, "any tax shelter organizer" must register

certain tax shelters with the IRS. Pursuant to §6112, "organizers and sellers" of

potentially abusive tax shelters must maintain a list of investors (including certain

identifying information) and other information about the tax shelter the Treasur

has by regulation required. The identities and other information are to be provided
to the IRS upon request. Shelters for which list maintenance is required are those

for which registration is required under §6111(c) or (d), and "listed transactions,"
\

i.e., those which the IRS has through notice, regulation or other published guidance,
identified as tax avoidance transactions.

Failure to comply with the registration

and list maintenance requiements subjects the organizer or seller to monetary
penalties pursuant to §§6707 and 6708,

11. The term "organizer," for purposes of§§6111 and 6112, includes persons

principally responsible for organizing a tax shelter as well as persons who
participate in the organization, management or sale of a tax shelter. "Any person
5

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who discovers, creates, investigates or initiates the investment, devises the business

or financial plans for the investment, or carries out those plans through
negotiations or transactions with others" is an "organizer." Temp. Treas. Reg.
.~

§301.6111-1T, Q&A 27. Paricipation in the organization, management or sale ora
tax shelter includes, among other things, "preparation of any document establishing

the tax shelter (for example, articles of incorporation, a trust instrument, or a
partnership agreement)," "preparation of any prospectus (or) offering

memorandum," and "preparation of a tax or other legal opinon relating to the tax
shelter" when, for example, the person performing the acts is related to the tax

shelter or participated in the entrepreneurial risks or benefits of the tax shelter. A
person will be considered related to the tax shelter or its principal organizer if the
person is employed by the shelter or organizer, Temp, Treas. Reg. §301.6111-1T,

Q&A 28 & 30. "Participation in the management of a tax shelter includes
managing the assets ofthe tax shelter (or) directing the business activity of

the tax

shelter." ¡ Temp. Treas. Reg. §301.6111-1T, Q&A 28. Participation in the sale of a
tax shelter includes "instructing or advising sales persons regardig the tax i
i

shelter."! Temp. Treas. Reg. §301.6111-1T, Q&A 31.
i

12. T~e term "seller" generally includes any person other than the organizer

"who reclives consideration in connection with another person's right to participate
1

in a tax shelter, (or) for services necessary to the organization or structure of such
tax shelter. . ." Temp. Treas. Reg. §301.6112-1T, Q&A 5&6.

6

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13. For example, the tyes of activities which may constitute organization andlor
sale are:

a. management of assets or business of the corporations (including

subchapter S corporations) or partnerships involved in the tax shelter, banks involved with the shelter, or instructing or
direction of activities of

advising sales persons;

b. involvement during the conception of the transactions and/or

marketing to potential paricipants, or solicitation of investors;
c. ; relatedness to the tax shelter or any principal organzer of the tax

shelter, which would include employment by the shelter or its organizer,

intluding being paid by the shelter or its organizer;
i

d. i .. participation in the entrepreneurial risks or benefits of the tax shelter,

inçluding whether compensation was based, in whole or in part, on whether
interests in the tax shelter actually were sold or the value of the investment

in the shelter.
See e.g., Temp. Treas. Regs. §§301.6111-1T, Q&A 27-30.

14. Racently, Treasur issued final regulations under §6112, which defie an
"organizer" or "seller" of tax shelters to which the list maintenance requiements

ápply to ~clude any person who is a "material advisor" with respect to that
transact,on. Treas. Reg. §301,6112-1(c). A "material advisor" is any person who is
i j

requiredlto register a tax shelter under §6111. In addition a "material advisor" is
i

any pers n who expects to receive a "minimum fee" in excess of certain amounts set

he regulations with respect to a transaction and provides a "tax statement"
regardi a "potentially abusive tax shelter" to another material advisor or to a

15. P suant to §61U(c), a tax shelter organizer must register a shelter which is

expecte~ to provide the purchaser over the first five years with more than two
I i i i

7

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I

¡

dollars i1tax benefits for every dollar invested and is required to be registered, or is

sold puriuant to an exemption, under Federal or State law regulating securities, or
is a substantial investment (a "substantial investment" is one in which the
,

aggregatr amount which may be offered for sale exceeds $250,000, and there are
¡

expected!to be 5 or more investors), Pursuant to §6111(d), a tax shelter organizer
i

must re~ster "confidential corporate shelters." A confdential corporate shelter
i

includes ~ny "entity, plan, arrangement, or transaction," a signcant purose of
¡

which is t'the avoidance or evasion of Federal income tax for a direct or indirect
particip nt which is a corporation," which is offered under conditions of

confden iality and for which the p'romoter may receive fees in excess of $100,000 in

16. T e IRS, through reguation, notice or other published guidance, has
identifie certain transactions as havig a potential for tax avoidance or evasion,

subjecti g them to the list maintenance requirements of §6112 (in addition to
§6111(c) and (d) shelters). Temp. Treas. Regs. §301.6111-2T(b)(2) and §301.6112-1T

Q&A 3& ; Treas. Regs. §§301.6111-2(b)(2) and 301.6112-1(b)(2)(i)(A). Such
transact ons are caled "listed transactions." The IRS considers a "listed

transact on" and all substantially similar transactions to have been structured for a
significa t tax avoidance purose. Listed transactions may also be §6111(c) or (d)

shelters. The IRS has from time to time published notices of such "listed

transact ons." (See, e.g., Notices 2003-76 (summar of notices), Govt. Ex. 3).

8

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17. S B&W was involved in the organization and sale of

potentialy abusive tax

shelters hrough, principally, its then-partner R. J. Ruble.
18. B sed upon the IRS' investigation of SAB&W, its investigation of other
promote s, and its examination of

taxayers who have engaged in certain "listed

transact' ns" or other potentially abusive tax shelters, it appears that during the
period J nuary I, 1996 through October 15, 2003, SAB&W was organizing and/or
sellng p tentially abusive tax shelters, including those that are the same as or

similar t transactions described by the IRS and identifed as "listed transactions"

in Notic 99-59 (Boss), Notice 2000-44 (Son-of-Boss, BLIPS, COBRA), Notice 2001-

O),Notice 2001..45 (basis shiing shelter, FLIPS/OPIS), and Notice 2002-

S), as well as certain other transactions identified as Spread Options,

Commo Trust Fund, and Option Transfer that were organized or sold in
conjunct on with accounting fims and investment advisors.
19. It appears that SAB&W developed potentially abusive tax shelters with

others, i eluding KPMG, Ernst & Young, Diversified Group, Inc., Price Waterhouse,
Bricolag IlCA, Arthur Andersen, Ahrens & DeAngeli, BDO Seidman, MultiNationa Strategies, Chenery Associates, Presidio Advisors, Deutsche Bank, and

Grant T ornton,
the two
20. &W has represented to the Government that upon the merger of

law fi ,Sidley & Austin and Brown & Wood, on Apri 30, 2001, SAB&W

determi ed that it would no longer issue opinons to non-corporate tax shelter
particip nts and that Ruble had agreed to discontinue issuig such opinions.

9

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21. It ppears, however, that Ruble, as a partner of

the firm, continued to issue

opinions 0 non-corporate tax shelter participants, and he continued to organize and

sell tran actions which were or later became potentially "lited transactions" or
other po entially abusive tax shelters.
22. S B&W has represented to the Government that on October 24,2003, it
uble from the fim for breach of fiduciary duty and breach of

the

partners 'p agreement. SAB&W also represented that it expelled Ruble because,

among 0 her reasons, it learned that Ruble had continued after the merger to issue
opinions to individuals with respect to "listed transactions" or other "potentially
abusive ax shelters."
23. rther, SAB&W has represented to the Government that Ruble was
unwilln to address questions raised by SAB&W about certai of the

represe ations it had made to the IRS, based in large part on information provided

by Rubl , and therefore, to the extent that these representations could not be fuly
verifed, they should not be relied upon by the IRS. (See SAB&W letter dated
Novemb r 4, 2003, Govt. Ex. 4).

prior
24, &W'sreservations about the correctness and completeness of

ations about SAB&W's involvement with "listed transactions" based on

informa 'on providedby Ruble appear to have merit. For example, in a prior
written escription given to the IRS to explain SAB&Ws involvement with the
basis-sh fting shelter described in Notice 2001-45 (FLIP/OPIS), it was represented

&Ws role was limited to issuing independent legal opinons to shelter
10 .

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nts for a flat fee. The description contained no discussion of Ruble's

involve ent in the organization or sale of FLIP or OPIS. As set forth in detail in
the Ded ration of Revenue Agent Kan, however, it appears that SAB&W,
primari through' Ruble, was involved in the organization and/or sale of FLIP and

OPIS.
25, In addition, SAB&W and KPMG jointly developed the Bond Linked Indexed

Premiu Strategy (ala BLIPS), which is the same as or substantially similar to
transact ons described in Notice 2000-44. SAB&W, through Ruble, also helped

develop nd promote with Diversifed Group, Inc. the Option Partnership Strategy
(OPS),

ich is the same as or substantialy similar to transactions described in
00-44, Ruble also "licensed" as "technology" a CARDS tax shelter, which

e as or substantially similar to transactions described in Notice 2002-21,

in excha ge for a royalty payment.

III. The John Doe Summons Should Be Enforced
A. The John Doe Summons Has Been

Issued For a Legitimate Purpose.
26. T e IRS is conducting an investigation to determine the correctness of

returns iIed by and the correct federal tax liabilties of certain United States ta
xpayers ho, during any part of

the period Januar 1, 1996 through October 15,

2003, pa ticipated in a transaction which was or later became a "listed transaction"

or other 'potentialy abusive tax shelter" organized or sold by SAB&W,
27. A set forth above and in the Declaration of

Revenue Agent Kan, it appears

that S & W, during the period under investigation, was organizing and sellng

ii

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"listed tr nsactions" and other "potentially abusive tax shelters." The IRS has

ed that such transactions have been structured for signcant tax

puroses.
B. The Information Sought is Relevant to
the Investigation of

the John Does.

28. 0 ce the paricipants in the "listed transactions" or other "potentially
abusive ax shelters" are identifed, the IRS can begin to determine the correctness

of federa tax returns fied by the partcipants and determine the correct federal tax
liabiltie of the participants. Identification of the participants is the first necessary

step to d termining the correctness of the participants' returns and their correct tax

liabilitie ,
C. All Other Requirements for

Enforcement Have Been Satisfied.
29. T e IRS does not have possession of all identities of participants in "listed
transact ons" or other potentially abusive tax shelters organized or sold by SAB&W
during t e period January 1, 1996 through October 15, 2003. The IRS has

identifie a number of the participants, but not all of the participants.

30. T e IRS has attempted to identif the participants in these potentially
abusive ax shelters from its own records, but has found that such information

cannot b located and/or is not readily available. This is due, in part, because
inspecti n of a particular purchaser's return may not readily disclose the
purchas r's involvement in the transaction or the potential understatement or

12

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misstate ent of income from involvement in the transaction. And, in any event, it
is not fe sible for the IRS to inspect every filed tax return or audit every taxayer.

31. a December 22,2001, the IRS published Announcement 2002-2,2002-1

C.B. 304 (Disclosure Initiative), in which it encouraged taxayers to disclose their
tion in and tax treatment of tax shelters in exchange for the IRS' waiver of

nalties under 26 U.s.C, §6662, ifthe IRS determined that the taxpayers
made an underpayment of tax, As par of

the IRS's Disclosure Initiative, taxayers

were req ired to identify the parties that promoted, solicited or recommended that
they p icipate in the tax shelter. In response to the Disclosure Initiative, the IRS

received approximately 80 Disclosure Statements identifng SAB&W as promoting,

, or recommending their participation in certain tax shelters.
32.

e IRS has also attempted to identit' the participants from third-party
ncluding, but not limited to, KPMG, Ernst & Young, Diversifed Group,
Seidman, and Presidio Advisors, but it does not appear that it has

everyone.
33.

October 27,2003, SAB&W responded to the "John Doe" Summons by

the IRS with the names and addresses of some, but not al, of the

particip nts in potentially ab.usive tax shelter transactions for which it had issued

13

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34.

. e the IRS has identifed a number of the participants in these
ns, it does not believe that it has identifed all of the participants.
cknowledges that it issued over six-hundred and twenty (620) opinions

during t e period January 1, 1996 through October 15, 2003, with respect "listed

transact nsn or other potentially abusive tax shelters. SAB&W also acknowledges

s withheld the identities of over three-hundred and seventy (370)
ts in these transactions because they have faied and/or refused to

o SAB&W's disclosure of their identity to the IRS.
35. best as can be determined when a person's identity is unknown, there is

no "Just" e Department referral," as that term is described in §7602(d)(2), in effect

with res ect to any unknown "John Doen for the periods under investigation.
36. AI adminstrative prerequisites for issuance of

the John Doe Summon have

been me .

W EREFORE, the petitioner respectfuly prays that:
1. This Court enter an order directing respondent to show cause, if any it

may hav , why it should not comply with and obey the John Doe Summons served
upon it nd each and every requirement thereof;

This Court enter an order directing the respondent to obey the John
Doe Su mons served upon it, and each and every requirement thereof, and

ordering attendance and testimony by a duly authorized representative of the
respond nt and the production of

books, records, documents and other data as

required by the terms of the summonses before Revenue Agent Kan, or any
14

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authoriz d offcer of the Internal Revenue Service, at such tie and place as may
hereina er be fied by Revenue Agent Kan, or any authorizd offcer of

the Internal

Revenue Service, or by this Cour;
3. The United States recover its costs in maintaining this action; and

4. The Court render such other and futher relief as is just and proper.
PATRICK J. FITZGERAD United States Attorney

OHN LINDQU ST ENNIFERG. COHEN
. Attorney, Tax Division

U.S. Department of Justice
Post Offce Box 55
Ben Franklin Station

Washington, D,C. 20044
Telephone: (202) 307-6561/6403

15

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EXHIBIT 5
DECLARATION OF JOHN LINDQUIST

Case 1:05-cv-00999-MMS
Case 1 :03-cv-09355

Document 16-4
-_.:...

Filed 05/12/2006

Page 31 of 43 EXHIBIT E DOCKET No. 16571-0

Minule Order Form (()1)

Document 6 . Filed 01/12/2004

Page 1 of 6

United States District Court, Northern District of Illnois
Nainc of'~ssigiicd Judge

or Miigislrale Judge
..

Matthew F. Kennelly
- .

Sitting Judge If Other

thin Asigned Judge

CASE NUMBER
CASE

03 G 9355

. --

DATE

1112/2004

USA vs". Sidley Austin Brown & Wood
..
. ,

TITLE
MOTION:

(In ihc fOll9wing box (:i) indicate the pai1y /iingj.\i~motion, e.g.. plaintiff, defendant, 3rd pariy plalnliT, and (b) siaie bricßy the natUre

ofthe modon being prcscnicd, J .

I

DOCKET ENTRY:

(I)
(2)
(3)

o

Filed motion of( use listing in "Motion" boxabove,l
Brief in support of

o o
o o

motion due_.

Answer brief to motion due_" Reply to anwer brief due_,
RulirtglHearing on ~ set for _ at..,:'. .
Status hearing(heldlcontinued to) (set for/re-~nor) on _ set for _ at _'

(4) (5) (6)
(7)

o Pretrial conference(heldlcontinued to) (set for/ry';:s~tforl on_ set for _ at_,

o . Trial(set forlre-set for) on _ at_.
o (Bench/Jur trial) (Hearing) held/contiued .to~__. at_.
o This case is dismissed (with/without) prejudice.and without cost(by/agreementlpuruant to)

(8) (9)

o FRCP4(m) 0 Local Rule 41. 0 FRq~l(a)(l) 0 FRCP41(~)(2),

(10)

. (Other docket entr) Status hearing held-and contiued to 2/26/04 at 9:30a.m. Enter Proposed

Order; Petitioner United States of America âíd respondent Sidley Austin Brown & Wood are hereby attached order in connection with petitioner's application ordered to follow the procedures set forth on the.
for enforcement of

the John Doe Summons í~iièd on 10/15/03.

(I I) -

(For futher detail see order attached to the orig~~i miute order,)

No noiices required, advised in open courl.
No noiices required.
Noiices miiiled by

z

..

EXHIBIT
5

Document Number
nunibr or I10iic

judge's stiiff,

Notitied counsel by iciephone.

. i

I i:

JAN i G 2004

./

Docketing to mail noiices, Mail AO 450 lònii.
Copy (0 judgelniagisiratc judge.

l
'S"n

. " l':\~"lS\O l'tnOJ .",i'9 Y.'L~q'J

JAN 1 6 2004'
daie mailed noiice

COUI~l'oom

OR

deputy's initials

n'\ .:. " .':. lJ

.~_.. io'r"y \\-.~¡\ L:t:. "..R~ \...1 ;\.

l?~ieJiI:.iyeiyec 1~ i-ti:nirl .CJ(rkJ.0ffce'

mi1in dciy in;,ìiiS

Case 1:05-cv-00999-MMS

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Page 32 of 43
2 of 6

Case 1 :03-cv-09355 Document 6 Fil~d.01/12/2004 Page.

......": ,.'

~
. .,. i. "

.:

UNITED STATES DiSTR;CT COURT FOR THE NORTHERN OISTRÎCT OF ILLINOIS

EASTERN DrvION
UNITED STATES OF AMRICA,
Petitioner,
v.

) )

) -~.

~ . . I

)"':,. Action No. 03 C 9355f' ,.' . r y ,:liVi.! )

SIDLEY AUSTIN BROWN & WOOD LLP;'
Respondent.

).... ~ )
.01.

~'10t.al.P,?'~1D
~.\1'!; ./;1..:: : :o'l

JAN 1 G 1.üO~

)

. . '~tr'.'"

..~.. '~,,"- .
~~.'_......L . ;..:..... :_._.......,-.__,J

PROPÒSED ORDER
Petitioner United States

of Anenca.M1d. respondent Sidley Austin Brown & Wood LLP, are hereby ordered to follow the procedures set fort below in connection with the John Doe summons issued petitioner's application for enforcement ("Pe.tition to~Enforce';) of

on October 15,2003 and served upon respondent, seekig the identities of cerin former clients
of respondent 'or its predecessor to whom opinions'respecting certain tax tranactions were

provided.
1. On or before Januar 13, 20Q;,. respondent slill, to the extent practicable,
send notice to its former. clients, whose identities have not been disclosed to. petitioner and who
received opinions from Brown & Wood LLP or respÒndep.t with respect to the

transactons

identified on Appendix A hereto ("Former Clients;')1.ofthe requirement ofthisOrder that

respondent disclose the identity of those Former C1i~nts to petitioner. The form of notification is attached hereto as Appendix B and shall be sent by overight delivery service.
. ....1:

2. On or before Januarý 23, 2004, any Foimër Client who wishes to assert a

privilege with respéct to the Former CUtIts identity shall so inform respondent in wrting by
overnight delivery SeMCè, which assertion must be received by respondent no later than Janilar

23, 2004,
3, On or before January 29, 2ö04, except to the extent privilege claims are made to respondent in accordance with .paragraph2 .above, and except to the extent respondent, Order to a Former Client, this after reasonable effort, is unable to provide notífication of
respondent shall provide the identities of its Former. Clients to petitioner.
4. On or before Januar 29, i:OQ4, wìth respect to thòse Former Clients to
whom respondent is unable to provide

notice despite reasonable effort, respondent shall inform

the Court and petitioner of such inabilty. .

...,~,~.~....

Case 1:05-cv-00999-MMS

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Page 33 of 43

. Case 1 :03-cv-09355 Document 6, Filed 01/12/2004 Page 3 of 6
"

t 5. On or before Janua 29,2004, with respect to those Former Clients who

make a privilege claim to respondent in accordance,.with paragraph 2 above, respondent shall , produce with respect to said Fonner Client the Wñifo. priviiege claim, reacted to the extent
necessar to protect the identity claimed to be subJAAt to Ule privilege. Such redacted, written
privilege claims, if aiy, shall be delivered to co~~ë.~~Îor petitioner. ."

6. After Januar 29, 2004,and.on.or before February 9,2004, petitioner may

move the CoUr to order production by respondentotthe identity of any Fonner Client not produced on the basis of an asserted privilege. P'~_titiner shall serve such motion by overnight
deliver service on respondent. tJpon receipt ofs~s:motion, respondent shall serve by

overnight delivery seIvce ~ copy of such motioii~ñ:"cotinsel for .each Former Client aserting a
privilege. If a Former Client assering a priviiege.§.~s not have counsel, respondent shall

forward a copy ofpetitio'nër's motion to such Forter Client by overnight deliver service on the

day respondent receives petitioner's motion. .:
7. In the event that the petitiöier1ïies a motion in accordance with paragraph
6, any Forier Client assertng a privilege may s,~~tto be heard to support the privilege claim by

fiing a motion with the Court on or before Febru 19,2004. This order shall not be constred

as creating a right to intervene. . . . .
justice.

8. The Court finds the forego.i&~,procedures to be fair and in.the interests of

9, The Court shall retain jur5.tè,tiôn to enforce compliance with ths Order

and for the entr of such other orders as may be ~'p~priate.
10. This case is set for statu .iiËtmru 26, 2004, at 9:30 a.m. On or before

such date, respondent shal reply to the Petition.to..Enfoi:e.

IT is SO ORDERED.

Dmed: ~,20M
_.-....:' (Jnited States Distrct Judge

2

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Case 1 :03-cv-09355 Document 6 Filed 01/12/2004 Page 6 of 6

i. Your counsel wil be able to adviseyöu on bøw to comply with these
procedures. Again, we urge you to seek counsel ~ëdiateiy.
'..

Dated:

.2004

'r:~"': OS.lULEY AUSTIN BROWN & WOOD LLP
. a~ One Plaza

io..south Deabôni Street Chicago, Ilinois 60603 ",~~.' .
(312), 853.,7000

..

.. f3~p~853.;7036 (fà)

~'., ". . ....

....i~_.

. '. '. "

,
,. _~.i

.,1:;";

. '. .".

CHI 28SlS67v4 Janua 12, 2004il 1:04ain)

2.... .

,~-..-'.. ~

Case 1:05-cv-00999-MMS

Document 16-4

Filed 05/12/2006

Page 35 of 43

EXHIBIT 6
DECLARATION OF JOHN LINDQUIST

Case 1:05-cv-00999-MMS

Document 16-4

Filed 05/12/2006 Page 36 of 43 EXHIBIT G

DOCKET No. 16571-04

. 8Ai'"

_.. ..... .... -"" . _C,Il" Muii ..... NO oi .. ern ..",, .._c ",,".u e.....:i où'-i . ,,"ll~," ..,ocli .,. i-gul."Q "".. . MC O~IlYA
A.."UDA NA..

£- El Afll
aA.i;lL

B.Ai:R & M9KENZIE
A.. I'AQ
A TTOFlNEY 5 .. T LAW

REDACTED
Hoir,...
Souno AOM ~aD''' -lCl AWI

~ .- . ..NO_COW

..
k"'"

w,...w

&\

.,..

ONE PRUOE:NTIAL PLAZA SUITe: 3:500 130 £AS T RANDOLPH DI'/VE:

...,..
o..u.....

c"'..o..
CMIC".O

...0 ~"C' ..T_
.....
I'JaO ALio
6l OCIIQ

au.ll:O 01""

... n.~CCO i,. n..c. .""O,oiO

?D,,O .

"'-

ICMG. 1ICM

C..C..GO. ILUNOIS 60601

'''1.0'' ~,.ii

V.a\.CI .

TE:ONE: 13121 eei. 8000
.FACS~E 13121 eGI-2e~'

_no"

ftJØ QC ....ll

w",atNOTOf a.c.

.,..Q4PC

l'..D .

.TV" .

. _.baklnlo.aOl
Janua 22, 2004

Tl-S "'. No LlOUAHtI

e.2I _-Z.¡U

..yJ.._ti.....
VI HAD n;gLIVRY
Michel Sween cy . , Sidley Austi::irown'~ Wood, LLP
aan One Pla: ¡l

10 South Dear':om Street
Chicag, II 61:-6~3

Re:

United :5iate v: Sidey Ausin Brown & Wood
No. 03. .:-9355 .(N.D. Il.), .

Nòtic.¡.ton
Dear Mr. Sweney:'
In acco:danee with the Januar 13, 2004,'Order of

the Cour in the captioned maer, we hereby.

advise Sidley .\.us Brown &: Wood, LLP, tht our client. , wil contnue to wer the

As' SU~ you are instct Dot to diclose . .' identity unss an unti, there is a :f Order

attmç:y-client prviege ti) protet his identity from being disclosed to the Inte Revenue Serce.

frm the Cour th reRS such disclosu. ,'.
If you i .iV' any que pI... con me ":: 86 i -262.

Sy Y, I l

Thit~L
. TYMUmm
cc:

:i
,; i:

EXHIBIT
6

.i
~
I:

Ii

I

Case 1:05-cv-00999-MMS

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Filed 05/12/2006

Page 37 of 43

EXHIBIT F

DOCKET No. 16571-04

REDACTED
'j,lI !ur

-- ......,... .. ..
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ATTORNYS AT LAW
ONE PRUOENTIAl. Pl.AZA .

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SUITE: 3500 130 EAST RANDOLPH DRIVE CHICAGO. iLLINOIS tS0601 TELEPHONE GI21 8al-aooo FACSIMlU: i;121 861- 2899

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Janua 22, 2~4

lÆcbal Swee :LCY .
Sidley Aus

VL4. HA.I!ELIVRY '.

Brown & \V ood, LL

Ba:" One P1a:a .
i O. 'South Deå born Strt
Chicago.IL 60603
Re:. United states v: Sidey Åustin 'Brown & Wood.

No. 03.C-9355 (N.D. m.) .
Notific:ûion
Dea Mr. 'Swe:ney:
. In acce,rdce witl:tc Janua B. 2004, Ordér of

the Cour in the captioned matter, we htrby

advis Sidley i\usin Brown &. Wood. LLP. tht our client., .. Wil contiue to asser the

atmey-clic:1 pnviege to prtect hi. identity fr being tllased to the Inrcma Reenue Service:
As such,' you iir~ insted not to disclosè ' . idetity unles an unl ther is a'fi'Ord
from the Cour: that requires such disosur.
. If you :;ave any quetions; please contat

. .

me at (312) 8~1-262J.

S1.11' .. - ..

Thoif V ,il. LJ~ti

li1/-l i:t1 ;

TVmm
cc:.

Case 1:05-cv-00999-MMS

Document 16-4

Filed 05/12/2006

Page 38 of 43

EXHIBIT 7
DECLARATION OF JOHN LINDQUIST

Case 1:05-cv-00999-MMS

Document 16-4

Filed 05/12/2006

EXHIBIT 43 Page 39 of H DOCKET No. 16571-04

Case 1 :03-cv-09355 Document 61
Miile Onr fa 10671
United States Distrct Court Northern District of

Filed 02/06/2004 Page 1 of 5

Ilinois
Slttnji Judp If OOer I ,ibiin Auiiaed Judee

.1. Name Qr Aøigned Judge

or Mliglstratt .ludie

Mattew F. Kenelly
,

CASE Ni1ER
CASE

03 C 9355

DATE
USA VB. Sidley Austin BroWi &. Wood

216/04

TItLE
(IJI die rollowing box (I) indicate ihe piny fiing dic motion e.g.. plaintiff. dcfaidant, 3il paplaintiir an (b)

stale brdl lh nalun:

MOTION:

or th motion beng prte.!

I

DOCKT ENTY: .
(I)
(2)
(3)

o o o

Filed motion of ( usc listi in "Motion" box above,)
Brief in support or motion

due _'

Anwer brief to motion duc_. Reply to anwer brief duc_,

(4) (5) (6)
(7) (8) (9)

o
o o o o o

Rulig/cag on _ set for _ at_.
Statu hcaing(he!dlcontiued to J (set farlre-set for) on _ set for _ at_.
Pretral confrence(hld/contiued to 1 (set for/re-set forI on _ set for _ at _'

TriaJ(sct foi:/reset for) on _ at_,
(Bench/Jwy tr) (Hear) heldlcontd to _ at_,

Th eae is dismised lWithdioutl prjudice an Without costsfby/agreemDturua to)
o FRCP4(m) 0 Loal Rue 41. 0 FRCP4l(a)(l) 0 FRCP41(a)(2).

(10) . (Othr

docket

entr) Enter Agr Order

enorcement oftle John Doe sumons issue by

in connection with petitioner's 1219/03 application for petitioner and sered upon repondent, as approved by

the Cour

-i-./

(11) .

(For fuer detail see order attched to the origina nuute order.)

No notic:es tcuire,idvisal in op c:ourL

No nolÏçes reuire.
Noiic:cs mailed by.jiige's staff.

å
,;

EXHIBIT
7

DoUJDeat NUm~er
lImi.or""ÏC

.i
Noiified c:ounsel by telephoe.

i

!

fiPR 0 S 1~\\'
diie dood

Docketing 10 mail notic:cs

l
HmO:: i~i~.lsio '5'0
~m313
ó£ :01 ~~~ ll- àd~ ~ûill
Dite/time rcvcd in
ccni-ctrl nllc: H

Mail AO 450 form
Copy to judge/magistrte judge.

JlYJü
PR ') 5 2004

to(

OR depty's ititiiilS

courtm

d..ë IIIo no

naii- dc)" iiio

tJ':J l l _,t

Case 1:05-cv-00999-MMS

Document 16-4
Document 61

Filed 05/12/2006

Page 40 of 43

~

~

jI - ~~

.

j . ¡;'.:03-cv-09355 . ~ase 1

Filed 02/06/2004

Page 2 of 5

~
',-

.UNED STATES DISTRCl COURT FOR TBENORTHRN DISTRICT OF ILLIOIS

. EATE DIVION
)

UN STATES OF AMRICA,
Pettioner,
v.

)

)
) Civi Action ~~ 03 C 9355

) Judge Ma F. 'Keuelly__
) )
) .

SIDLEY AUSTI BROWN & WOOD LLP,

l?9.:~.. :-.... ~ .. . . j . '...~~~"'; :-.~

R,esndent

)

. Pn 0 5 '

.4 ..,..., 2004

~..11 " ;:

AGREED ORDER ~

'. .. '.. ..",

Pettioner Unite Sta of Amerca and respondeït Sidley Austi Bil'E Gr

..

f'

W co LLP, ar herby orer ,to follow the prcees se fort beow in connon with pettioner's Deber 29, 2003" application for enorcent of the 1000 Do suons issUed by petioner an .sered upn resndet

1. On or before F~ 7,200, i:iident shal to the ext prcale,
send notice to al pens: (a) who fèll with. the scope of 2004 (as amened by~e Cour's Orer daed Feb

5, 20() ("liuua 13 Orer") an to

th Cour's Or da Janua 13,
eff deite its

whom rënd~t believes it is now able tò sed notice thugh renale'

preous inilty to do so; an (b) who objeced to the lanua IJ Or o.nthc grunds that .

they did not fa with the scpe of Appendix A ther, but whO, durg any pa of the peod
Janua I, 1996 tbugl Ocber is, 2003, parcipat in atroD which Was ot later bec~ a "listed tron" or other "potetiy abusve ta sheltel with re to which
pettioner

or Brown & Woo LLP was paid a fee. Th notice to be set to such pens

("Perns'') sha advise them of

the requiemen oftb Ord~ th renden disclose the

identity of those Perns to pettioner. Tle form of notice is atched heet as ApP 1 and

shall be seIt by. overght deliver serce
2. On or before Febro i 3,200, any Pern revig the notice spfied

. in pargrph 1 who wishes to object to the diclosu of such Pern's identity sba so inorm respondent U: wnti by faC$ime or ovemglt deliver serce which asseón mus be
reved by repondent no later than Febru 13, 200. .
3. On or before Febru 16, 200, excet to the exte objecons ar mad

to resndent i~ accordance with pargraph 2 above, and excet to the extet renden af
renable effrt, is unle, to provide notificaon of

ths orer to a Pern, reponden sha

,.

provide the ide!tities of

such Perons to pettioner. .

&1

Case 1:05-cv-00999-MMS

Document 16-4

Filed 05/12/2006

Page 41 of 43

-,
~

',.

Case 1 :03-cv-09355 Document 61 Filed 02/06/2004 Page 3 of 5
"" cp

~

4. On or before Febru 16,200, with objecons to resndent in acrdce

resec to 'thse Perns who mae

with pargrh 2 abve, resndea sha prouc to counl for pettioner said Peron's wrtt objeco~ recte to thê extent nec to prote the PeCon's idetity. .
s. . On.Ot before Febru 17,200, withrepe.tothose Perns to whom
repondent is unle to

Cour 8n(1' petitioner of such inàbilty. . .
prducon by reponden of the identity of any Pern not produce on

prvide notice deite reanale effort, repondent sb inrm the

6. On or before Febr 17, 200, petioner may move the CoUr to ord

the basis of a wntt objecon. Pettioner sha see such motion by overgh deliver ~ce OD resndent Upon
rept of such motion respondent sha sere by.overght deliver serce a .copy of suh .

motion on cauoe1 for each Pern aser an objecon. If a Pern aser an objecon does

Dot have Cô~l, respondent shal foiwar a copy of pettioner's motion to suh Pern by
overght deliver sece on the day repondent reves petioner's motion.

7. In the event tht the pettioner files a motion in acrdce with pagrh
6, any Pern asseg an objecon may seek to inteene to be hea to surt the objecolÌ

by filig a motion with the Cour on or before Febr 27, 200. Ths order sh not be COl1tred ,as crg a right to interene or to be hea

l"

8. . The disclosur of ideties and pröucon of

docuents by rend .

purt to ths Orer or the Janua 13 Or do not constue a conceion by rendent th

Neith th Or nor the Cöw1's.Janua 13,200 sha be cons as mag ånyfidig as
to whéter repo~dent is an "organer" or "seller oCta shelte uner §§ 611 1-61129f the

it is an "organer" or "seller orta shelter uner §§ 6111-61 i~ of the Inte Reven Co.
hitem Revenue Çoe.
9.. The Cour fids the foregoing proceur to be fai

en in the in of

jusce.
I o. The Cour sha re jusdcton to enorc compliance with th Orer

an for the entr of such other order as may be apropriat.

IT IS SO ORDERED.

Dated: Febru 6, 200

,. .

~~
2

United Staes Distct Judge .. \.

Case 1:05-cv-00999-MMS
.,.
,,' --~

Document 16-4

Filed 05/12/2006

Page 42 of 43

Case 1 :03-cv-09355 Document 61 Filed 02/06/2004 Page 4 of 5

~ APPENDIX 1
..

IMRTAN NOTICE

TH REOUISYOUR IMDIATE AITNTON
Th Deparent of Jusce has intu a pfOing in the Unite Sta Distct

Coll for the Norter Ditrct of ßlis to enrc a sumns seg thè identities of ce
former clients ~fBro~ & Woo LLP anor Sidley AUSti Brown &;Woo UP who engaed
in ce ta tracons th the Intem Revenue Ser~ is Ilw investiga We hae

the conta frm~you. .
Order dated Februar 6, 200. A copy of Jiauar 13, 2003 and taen action on the' basis 01 tht notice. TH COURT

as the atríey-client prviege on yourbeb( bee we have not reved introns to
To persist in that cla or otherw to asse an objecon to the dJlosur
of your identity, you must actin a maer and In the tie frme set by the Cour lD an tht Order is enclosed Alo enclosd ar previous Com Orden date Januar 13, 2004 aad Febru 5, 2004.

You may have received i pre\'oUl notice repdbg the Cour Orer date

HA

ENEOD A NEW ORDER wmc. REQum FUTHER ACfONON YOUR
PART. We ure yo.u. to imeda.telyseek ~ tb Dew Order elte advice frm eounel reardig your rfgltsunder' Februar 6, 20~4. '

The Order provi that, If you WIh to coatiue to assert the attmey-ceiit
priege to protect yoii Ideiltity from beIDg dfd~sedto the Intern Revëïue Sei or otherwe objec to sum cUosure,you must so advie u. bywrtteD notication, seat by taelme 'or övëmfgbt delieryserv~e åJd receive by ils no lateI. th Febni '13, 2004. Yout wrtt notificaon should be sent to the followtg:
Michael Sweeey

Sidley Aus 'Brown & Woo LLP

Ban On Plaz
10

Sout Dern Stret

Chcago, Dlois 60603

If you provide us with tiely notificaon, we wil advie the Deparen of

Jusce of our rept of your intrctons Dot.later th Febru 16, 200. Therer, on or
beforeFebni i 7,200, the Depen of 1usce may move the Cowt for an. order diecg .

tht yoUr identity be disclose. If yQU havç engaged counel and have prvided your counl's
nae and addr in your wrtt noticaon to us, we wi see S1ch mo.tíon on your counl

by ovepght deliver serce on the day th we reeive it Oterel we wi forar th the day th we reve
Depent of Jusce's motion to you by overght deliver sece on

~

it

Case 1:05-cv-00999-MMS

Document 16-4

Filed 05/12/2006

Page 43 of 43

.. ., .. "" Case 1 :03-cv-09355 Document 61 Filed 02/06/2004 Page 5 of 5 .IJ
\ :',

~~. .. ,

Fonowig flg of the Deparei.t of Judee'i modon th your idendty be
diclosed, you wi have until Febni 27, 2004 to fie a motion with the c:our to seek to be

hea as to wby your Identi should be proteed from dflosur
U we do not reive your wrtten asserton of prieg or other objecon to

diclosure of your identi by Februar 13,2004 in acrdace'wi the proure

Justice. '

descred abve, the Cour has diected that we' provide your identity to the Deparent of
Your counse wi be able to advise you 011 how to comply wi thes

procedur Agai we ure you to see coUlseUDlDedtely.

Date: Febru -- 200

SIDLEY AUSTI BROWN & WOOD LL
Ban

One Plaz

10 South Dearn Str
Chcago. Dliois 603

(312) 853.700 "
(312) 8S3~1036 (fa)

'"

",
CHi 2B6 Fe1 6, 20 (iO:8i)
2