Free Cross Motion [Dispositive] - District Court of Federal Claims - federal

Case 1:06-cv-00407-ECH

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS No.06-407T (into which have been consolidated Nos. 06-408T, 06-409T, 06-410T, 06-411T, 06-810T, 06-811T) Judge Emily C. Hewitt (E-Filed: July 5, 2007) __________________________________________ ) ALPHA I, L.P., BY AND THROUGH ROBERT ) SANDS, A NOTICE PARTNER ) ) Plaintiff, ) ) v. ) No. 06-407T ) THE UNITED STATES, ) Defendant. ) __________________________________________) ) BETA PARTNERS, L.L.C, BY AND THROUGH ) ALPHA I, L.P., A NOTICE PARTNER ) ) Plaintiff, ) ) v. ) No. 06-408T ) THE UNITED STATES, ) Defendant. ) __________________________________________) ) R,R,M & C PARTNERS, L.L.C., BY AND ) THROUGH R,R,M & C GROUP, L.P., A ) NOTICE PARTNER, ) Plaintiff, ) ) v. ) No. 06-409T ) THE UNITED STATES, ) Defendant. ) __________________________________________)

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__________________________________________ R,R,M & C GROUP, L.P., BY AND THROUGH ROBERT SANDS, A NOTICE PARTNER, Plaintiff, v. THE UNITED STATES, Defendant. __________________________________________ ) ) ) ) ) ) ) ) ) )

No. 06-410T

) CWC PARTNERSHIP I, BY AND THROUGH ) TRUST FBO ZACHARY STERN U/A FIFTH G, ) ANDREW STERN AND MARILYN SANDS, ) TRUSTEES, A NOTICE PARTNER ) ) Plaintiff, ) ) v. ) ) THE UNITED STATES, ) ) Defendant. ) ) __________________________________________) ) MICKEY MANAGEMENT, L.P., BY AND ) THROUGH MARILYN SANDS, A NOTICE ) PARTNER, ) Plaintiff, ) ) v. ) ) UNITED STATES OF AMERICA, ) Defendant. ) __________________________________________)

No. 06-411T

No. 06-810T

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__________________________________________ ) M, L, R & R, BY AND THROUGH RICHARD E. ) SANDS, TAX MATTERS PARTNER, ) ) Plaintiff, ) ) v. ) ) UNITED STATES OF AMERICA, ) Defendant. ) __________________________________________)

No. 06-811T

APPENDIX A AND B TO PLAINTIFFS' RESPONSE TO UNITED STATES' MOTION FOR SUMMARY JUDGMENT IN CAUSE NOS. 06-407T, 06-408T, 06-411T, 06-810T, AND 06-811T AND PLAINTIFFS' CROSS MOTION FOR SUMMARY JUDGMENT

EXHIBIT 1.

APPENDIX A

PAGE

WILLIAM S. MCKEE ET AL., FEDERAL TAXATION OF PARTNERSHIPS AND PARTNERS ¶ 7.03 APP-A-1 APP-A-9

(3d ed.1997) 2. 3. S. REP. NO. 81-2375, pages 85-88 (1950)

Staff of the Joint Committee on Taxation, 98th Cong., GENERAL EXPLANATION OF THE

REVENUE PROVISIONS OF THE DEFICIT REDUCTION ACT OF 1984 at 156-57 (Comm. Print 1985) APP-A-14 4. THE NEW ROGET'S THESAURUS IN DICTIONARY FORM 126-27 (Norman Lewis, ed., APP-A-17

Berkley Books rev. ed 1978) (1961) 5. 6.

Temp. Treas. Reg. § 1.752-1T(k) (excerpt from now withdrawn regulation) APP-A-19 ALICE WELT CUNNINGHAM, SHORT-SALE OBLIGATIONS AND BASIS IN PARTNERSHIP APP-A-21

INTERESTS, 72 TAX NOTES 1663 (1996)

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7.

Richard Starke Testimony (excerpts) and Notes from Jade Trading, LLC v. United States, APP-A-39

#03-2164T

EXHIBIT 1.

APPENDIX B

PAGE

7/24/2001 Letter from Robert Sands to Gary Kornman APP-B- 1

2.

7/29/2001 Letter from Gary Kornman to Robert Sands including list of references APP-B-2

3.

Excerpts from 9/30/2005 Administrative Proceeding Deposition of Richard Sands APP-B-6

4.

Alpha I, L.P. Certificate of Limited Partnership

APP-B-11

5. 6. 7. 8. 9. 10.

Agreement of Limited Partnership of Alpha I, L.P. Alpha I, L.P. Form 1065 for the Year Ended 12/31/2001 Alpha I, L.P. Form 1065 for the Year Ended 12/31/2002 CWC Partnership I Form 1065 for the Year Ended 12/31/2001 Articles of Incorporation for R, R, M & C Management Corporation

APP-B-13 APP-B-44 APP-B-64 APP-B-99 APP-B-227

Written Consent of the Directors of R, R, M & C Management Corporation in Lieu of the Organization Meeting APP-B-229

11.

Unanimous Written Consent of the Directors of R, R, M & C Management Corporation APP-B-235

12. 13.

Stock Certificates for R, R, M & C Management Corporation Alpha I, L.P. Total Fund Review for Period ended March 31, 2007

APP-B-236 APP-B-247

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14.

December 2001 Account Statements for Richard Sands, Robert Sands, Marilyn Sands, Andrew Stern, Abigail Stern Trust, Zachary Stern Trust, and The Marvin Sands Master Trust APP-B-253

15.

Trade Tickets for Short Sales of Treasury Notes for Richard Sands, Robert Sands, Marilyn Sands, Andrew Stern, Abigail Stern Trust, Zachary Stern Trust, and The Marvin Sands Master Trust APP-B-298

16.

Lewis, Rice & Fingersh, L.C. Tax Opinion issued to the Trustees of The Marvin Sands Master Trust, with appendix and Representations of the Trustees APP-B-312

17.

Lewis, Rice & Fingersh, L.C. Tax Opinion issued to Andrew Stern, with appendix and Representations of Andrew Stern APP-B-415

18.

Lewis, Rice & Fingersh, L.C. Tax Opinion issued to Marilyn Sands, with appendix and Representations of Marilyn Sands APP-B-516

19.

Lewis, Rice & Fingersh, L.C. Tax Opinion issued to the Trustees of Abigail Stern Trust, with appendix and Representations of the Trustees APP-B-620

20.

Lewis, Rice & Fingersh, L.C. Tax Opinion issued to the Trustees of Zachary Stern Trust, with appendix and Representations of the Trustees APP-B-726

22.

Lewis, Rice & Fingersh, L.C. Tax Opinion issued to Robert Sands, with appendix and Representations of Robert Sands APP-B-832

22.

Lewis, Rice & Fingersh, L.C. Tax Opinion issued to Richard Sands, with appendix and Representations of Richard Sands APP-B-936

23.

Transfer and Assignment from the Abigail Stern Trust to CWC Partnership I APP-B-1040

24.

Transfer and Assignment from the Zachary Stern Trust to CWC Partnership I

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APP-B-1048 25. 26. 27. 28. 29. 30. Transfer and Assignment from Robert Sands to Alpha I, L.P. Transfer and Assignment from Richard Sands to Alpha I, L.P. Transfer and Assignment from Marilyn Sands to Alpha I, L.P. Transfer and Assignment from CWC Partnership I to Alpha I, L.P. Transfer and Assignment from Andrew Stern to Alpha I, L.P. APP-B-1056 APP-B-1062 APP-B-1068 APP-B-1075 APP-B-1081

Transfer and Assignment from The Marvin Sands Master Trust to Alpha I, L.P. APP-B-1088

31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.

12/20/2001 Letter from Richard Sands to Lynn Lyttle 12/13/2001 Letters from Sands family members to Lynn Lyttle

APP-B-1096 APP-B-1097

Journal Entries for purchase of Yahoo and Corning stock by Alpha I, L.P. APP-B-1100 Certificate of Organization for Beta Partners, LLC LLC Operating Agreement of Beta Partners, LLC Transfer and Assignment from Alpha I, L.P. to Beta Partners, LLC Beta Partners, LLC Account Transaction Record Merrill Lynch Account Statement for Gloria Robinson PaineWebber Account Statement of Beta Partners, LLC Trade Tickets for Closing Short Sales of Treasury Notes Beta Partners, LLC Form 1065 for the Tax Year Ended 12/27/2001 Purchase Agreement between Alpha I, L.P. and Gloria Robinson Alpha I, L.P. Wire Transfer Request and Confirmation APP-B-1103 APP-B-1106 APP-B-1148 APP-B-1156 APP-B-1157 APP-B-1160 APP-B-1178 APP-B-1180 APP-B-1189 APP-B-1192

Mickey Management, L.P. Form 1065 for the Tax Year Ended 12/31/2002 APP-B-1195 M, L, R & R Form 1065 for the Tax Year Ended 12/31/2002 APP-B-1214

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46. 47. 48. 49.

Certificate of Limited Partnership of Mickey Management, L.P. Certificate of Incorporation for Mickey Management Inc. 8/20/2001 Fax from Michael Mulligan to Robert Sands

APP-B-1269 APP-B-1270 APP-B-1272

Engagement Letters between Lewis, Rice & Fingersh, L.C. and Richard Sands, Robert

Sands, Marilyn Sands, Andrew Stern, Abigail Stern Trust, Zachary Stern Trust, and The Marvin Sands Master Trust 50. APP-B-1281

Invoices from Lewis, Rice & Fingersh, L.C. to Richard Sands, Robert Sands, Marilyn

Sands, Andrew Stern, Abigail Stern Trust, Zachary Stern Trust, and The Marvin Sands Master Trust 51. 52. 53. 54. 55. 56. CWC Partnership I Form 1065 for the Tax year Ended 12/31/2002 Affidavit of Robert Sands Affidavit of Richard Sands Affidavit of Kevin Witriol Declaration of William Falk APP-B-1295 APP-B-13316 APP-B-1348 APP-B-1355 APP-B-1361 APP-B-1366

Uncorrected copy of Excerpts from the 6/13/2007 Deposition of Robert Sands APP-B-1373

57.

Uncorrected copy of Excerpts form the 6/12/2007 Deposition of Richard Sands APP-B-1386

58.

Excerpts from the M, L, R& R Form 1065 for the Tax Year Ended 12/31/2001 APP-B-1402

59.

Trade Tickets for short sales of Robert Sands, Richard Sands, Marilyn Sands, Abigail APP-B-1407

Stern Trust, and Zachary Stern Trust from August 2001.

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