Released on = March 27, 2007, 9:16 pm

Press Release Author = Michael Henry

Industry = Law

Press Release Summary = Goldman Sachs, Cisco Systems, Henry Paulsen, IRS and U.S.
Government, Sued
for Tax and Bankruptcy Fraud -- Fitzgerald\'s Office to Defend Government


Press Release Body = CHICAGO, March 28 -- High-profile United States Attorney
Patrick Fitzgerald\'s office is defending three employees of the Internal Revenue
Service (IRS) and U.S. Attorney Lynne Murphy for their part in a purported $9
million tax fraud. They have been sued in the Northern District of Illinois for
allegedly fabricating and falsifying IRS tax records.
According to the suit, one Michael Henry purchased $8 million of stock in
American Metrocomm Communications, by paying $2 million cash and giving the
company a non-recourse note in the amount of $6 million. Under current tax law,
and as upheld in the landmark case of Crane v. Commissioner, 331 U.S. 1, 67
S.Ct. 1047(1947), a non-recourse debt is treated as a recourse debt for tax
purposes. However, according to the suit Ms. Murphy (following the orders of her
supervisor Michael J. Kearns and Eileen J. O\'Connor, the Assistant Attorney
General) instructed the IRS employees to ignore this ruling, as well as
Commissioner v. Tufts, 461 U.S. 300(1983), and enter fraudulent information into
the IRS computers showing Henry earning, instead of owing, $6 million. This
caused the IRS system to erroneously create a deficiency notice for insufficient
tax payments in excess of $9 million.
Henry has sued the United States Department of Justice, the IRS and all
individuals involved, for fabricating and falsifying this deficiency notice and
for ignoring the Supreme Court rulings. Based on the evidence that the IRS
claims it has in its possession Goldman Sachs, Cisco Systems and Henry Paulsen
along with the IRS and the U.S. Government withheld records and evidence in the
Delaware bankruptcy filing of American Metrocomm Corporation. Henry is claiming
civil damages for legal malpractice, bankruptcy fraud and damages against the
government and its individual employees for creating and falsifying government
tax records and for withholding documents from the bankruptcy court.

However, Ms. Murphy maintains that a U.S. attorney can commit fraud and ignore
Supreme Court rulings while working for the U.S. Government, because the U.S.
Government and its employees are immune to lawsuits under so-called "sovereign
immunity." In the meantime, Ms. Murphy continues to work on tax-related cases.

The Honorable David Coar has been assigned the case (06-C7087).
Any questions can be addressed to Michael Henry at 312-560-5291.



Web Site = http://

Contact Details = Michael Henry at 312-560-5291.
Email - michaelh76@msn.com