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

Case 1:05-cv-00999-MMS

Document 24-4

Filed 06/12/2006

Page 1 of 6

Exhibit J

Case 1:05-cv-00999-MMS
1

Document 24-4

Filed 06/12/2006
.Bi_e P_..:,='" 130 EaSt

Page 2 of 6
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Tel: +1 312 861 8229 Fax: ÷1 312 616 7345 [email protected]

VIA E-MAIL & U.S, EXPRESS MAIL March 5, 2004 John Lindquist, Esq. U.S. Department of Justice Post Office Box 55 Ben Franklin Station Washington,
& East

Hon E Kang Jakarta Kuala Lumour

Mafllla Metbou[ne ·Snan._ a!

Singapore Sydney TaJpe, Tokyo Europe Middle

D.C. 20044

Re:

United States of America v. Sidley Austin Brown & Wood, LLP

Almat_, Amsterdam Al_twerp Bahrain Ba4u Barcelona Berlin Bologna Brussels Budapest CalFO OvsseK_or Frankfurt Geneva _r=,, London Madrirt M!i@rl MOSCOW ,M,jntcrt Pans Prague Riyadh Rome St, Petersburg S_oc_.holm Vienna ':,arsaw Zt_nch North America BcEo_a Braslha BuenOs Ca_ar_ Caracas Cnicaso Datl_S Guadatajara Houston Juere_ MexKO M=am= Monterre._ New vbr_ C,ty Aires & South f ; Mare

Dear Mr. Lindquist: Pursuant to Judge Kennelly's March 4, 2004, Order, enclosed please find redacted versions of"Baker" Doe 1 and "Baker" Doe 2's engagement letters with Brown & Wood, LLP. The only redactions made to the engagement letters are the "Baker" Does' names, addresses, and signatures. Additionally, neither "Baker" Doe's files contain confidentiality agreements with Brown & Wood or Sidley Austin Brown & Wood. If you have any questions regarding the redacted engagement letters, or the absence of confidentiality agreements, please contact Tom Linguanti at (312) 861-2623 or me at (312) 861-8229. Sincerely,

Gregory S. Lynam GSL/mm Enclosures co: William F. Conlon, Sidley Austin Brown & Wood LLP

PaqG &ira Per ,_0A!egre R_O de Jane,re San OteEO Sen Franc, s¢o Sa_z;ago Sao Pallia ;'_uana To_?lqo ;a_encla ',;ash-r:gt¢.-. OC

Case 1:05-cv-00999-MMS
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Document 24-4

Filed 06/12/2006

Page 3 of 6

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· Decembe_ 26, 2000

Re: Soeeial U.S..Fede_l

In.me

Tax Counsel

You h_tve asked r_! we act u special U.S. f_era! income tax ¢otwJml to you in connection with cerum i_vestment _ansactions various digital foreign cun_cy in which you have engaged involving the. acquisition of a_ intcr_ in a foreii_ orpo_tion thro_h an S orporation and your entP.dl_ into opdon n-adds, bo_h in your individusd empa_ity and fllrou4_hthe " foreign comomtion {"Transactions"). In that capacity,you have asked that we provide you with an opinionregarding certain ofthe U,S. federal income tax onseqLm_'_s the Tramacbons (i) of in ormecuon with the ¢Iodng of the Transactions and (fi) in connectionwir_ your filling a U.$, f_cral income _ax re_um repotlins the transac_ns op_on, on April 15, 2001. In thecue oft_e lan_ we will only b_ obligated to provide such opi_ou in the eve_ that there has been no T_'ons.

adverse chang_ in the _atme, regulado_s, or adrainistrative or judicial interpretation thereof subsequent to the closingofd_

You _ "knowledge that any U.S. t'edcra] income tax opinion that we issue in ¢ennecdon with your participation in the Transactions will not guarantee the U.S.federal income tax ¢onsequenc.es r_ere_f, but wilt provide only that such tax con_uenc, e_ are "more _kety th_ r_0t" _0OCCUr. We hereby agree to sorepresent you. We wish to point out that although we are u_t representing or advi.cing the Diversified Group Incorporated or any of its affiliatm ("Divemified") in conncction with the Transactions, in the past we have reln'esented or advised Diversified with re_ec_ :o certain matters and may continue to do so in _e falu_. your By acc¢,ptance this letter you waive any legal con.filet that may arise from such current, past or of t'u,ure repr_entafions.

Case 1:05-cv-00999-MMS

Document 24-4

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By ._o;-rac.:c_ta._:c_ tlds lc_.m-you a_¢e that any controversyor cla_ m'isins, om of or of r.elatmg tc "hi:;l_ae:. _d the matters addressed hotin, shall be settled by arbitration adm:..aist¢re._ by t|,.e -,merican .Arbitration Association M a_ordmace with its Commercial R.ul_ and jud._ttmt jurisdiction on the aw,t,rd rendctt,d by the arbitrator may be cnl_l thereof. in any ¢ourl having a court of The arbitration proce,ding shall be cond,actcd in New York City, New in orm proce_Lingsto _orce a party nor an mbitrator may

York. The arbitrator shall have the authority to award any remedy or rdicfthat competent jur_sdtclion could order or grmlt. ]_xcept as __sary th_._arbitration provision or an award rend¢r_ hcrctmder, n,itl_

disc_os, the ext_tence, cont,nt or rt_'ults of any arbitration he.rctmderwithout the prior writt_ consentof'tooLh pattie,. The partiesacknowledgethatthis l_' govern the int,rpretaiioo, _+videnc_ a transaction mvoh.il_g interstate commerce. The pardes agr_ fltat Umted States Fodcral Arbitradot_ Act shall and ord'orccmtmt of this arbitration pin, sick..

PIe_, return vm_cknowl_,_l tcmxs hereof.

copy oftlds l,ttar as ,vidcn_ ot'yo_racc_mac_ ofth,

Vory rally yore's,

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Acknowledged

Case 1:05-cv-00999-MMS

Document 24-4

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el

December 26, 2000

Re: Speci=l ,U.$, Federal I.ncome Tax C eunsel

Deaf

You have asked that we act as special U.S. federal income tax counsel to you in connection with c=rtain investment transactions in which you have engaged involving the acquisition of an interest in a foreign orporation through an S corporation and your entering iuto various digital foreign curzency option trades, both in your individual capacity and through die foreign corporation ("Transactions"). In that capacity, you have ask_ that we provide you with an opinion regarding certain of the U.S. fed=a] income t_ consequ_ces

of the Transactions (i)

in connection w i_ the closing of'the Transactions and (ii) in connection with you_ tilting.a U,S, federal income tax return reporting rite transactions on April 15, 2001. In the case of the latter opinion, we will only be obligated to provide such op_nion in the event that there has been no adverse change in the statute, regulations, or administrative or judiciai interpretation thereof subsequentto the closing o£the Transactions. You acknowk_ige that any U.S. federal income tax opinion that we issue in connection with your participation in the Transactions consequences not" tO OCetlr, We hereby agree to so represent you. We wish to point out r_at although we are not representing or advising the Diversified Group Incorporated or any orals affiliates ("Diversified") inconnection withtheTransactions, thepastwe have represented advised in or Diversifird "_dth espect certainatters r m m and may continue do so inthefuture. your m By acceptance this of letter waive any legal you conflict may arise that from suchcurren_ past or futurecprcscntations. r By youracceptance this of leuer you agree that any controversy orclaimarising outofor relating tothis letter, thematters and addressed erein,hall e settled arbitration h s b by
t-O8 AF'FIt.IAT_D AmO[I.Z5 WITPI S_OWN " SAN _ _RANCI$_=O WOO0, _ · WA.._H|Nt3TG_N MULTIN_'_ONAL 0._. ' B_tJING wl'r_ · TOKYO oFPicl_.s fv_P_S_NTATIVI_ IN _ONOON AN9 OFFiC_ HONO KONG PARTNR_qJP

will not guarantee the U.S. federal income tax are "more likely than

thereof, but will provide only that such tax consequences

Case 1:05-cv-00999-MMS
)

Document 24-4

Filed 06/12/2006

Page 6 of 6

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administer©d by the American Arbitration Association jurisdiction

in accordance

with its Commercial

R.ulcs

and judgment on the award rendered hy the arbitrator may be entered in a_y court having thexeof. Tl-m arbitration proceeding shall be onducted in New York City, New York. The arbitrator shall have the authority to award any remedy or relicfthat a court of competent jurisdictiou could order or grar_. Except as necessary in court proceedings to enforce this arbitration provision or an award rendered hercundcr, consent of both parties. The parties acknowi_lge neither a party nor an arbitrator may without the prior written a tran_ction disclose the exists-nee, content or results of any arbiu-ation hereunder

that this letter evidences

involving interstate commerce. The parties agree that United Stal_esFederal Arbitration Act shall govern the interpretation and enforcement of this arbitx_ion provision. Please remm an acknowledged c_-ms hereof. Very truly yours, copy of this letter as evidanc© of your acceptance of the

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