Free Joint Status Report - District Court of Federal Claims - federal

Case 1:05-cv-00299-EJD

Document 39

Filed 06/11/2007

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS ____________ No. 05-299 T (Chief Judge Edward J. Damich) (Consolidated with: No. 05-300 T, No. 05-301 T, No. 05-302 T, No. 05-303 T) INSTASHRED SECURITY SERVICES, LLC, by and through ISS ACQUISITIONS, LLC, a Partner Other Than the Tax Matters Partner Plaintiff, v.

THE UNITED STATES, Defendant. ______________ JOINT STATUS REPORT ______________ Pursuant to the Court's order of January 18, 2007, the parties hereby provide this Joint Status Report and request that the Court continue the stay of proceedings in this action. The criminal proceedings in the Southern District of New York that led the Court to stay this case in October 2005 are continuing. United States v. Stein, et. al. (No. S1 05 Cr 888, S.D.N.Y.). The criminal trial remains scheduled to begin on September 17, 2007. The promoter of the alleged tax shelter transaction at issue here, David Greenberg, a former KPMG partner, remains a defendant in the criminal proceeding.

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2514544.11

Case 1:05-cv-00299-EJD

Document 39

Filed 06/11/2007

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Continuing the stay of these proceedings will prevent harm to the criminal prosecution and permit the United States the opportunity to mount a full and complete defense in this case unencumbered by claims of Fifth Amendment privileges and with access to all relevant information once the criminal proceedings are concluded. The plaintiffs here submitted an offer on January 23, 2006, to settle all the issues in these consolidated cases. The Department of Justice is considering plaintiffs' offer. The Internal Revenue Service is also working with the plaintiffs on the recomputations necessary to complete consideration of the offer. The parties support continuing the stay in this action pending the completion of the proceedings in the related criminal proceedings. The pending settlement offer from the plaintiffs is further reason for continuing the stay. The parties propose a further joint status report for November 15, 2007, to advise the Court of the status of any developments in the Stein criminal proceedings and settlement prospects.

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2514544.11

Case 1:05-cv-00299-EJD

Document 39

Filed 06/11/2007

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Respectfully submitted, 06/11/2007 Date s/Bradley A. Patterson BRADLEY A. PATTERSON Goddard LLP 18101 Von Karman Ave., Suite 330 Irvine, California 92612 (949) 253-0500 Counsel for Plaintiff 06/11/2007 Date s/Robert J. Higgins ROBERT J. HIGGINS Attorney of Record U.S. Department of Justice Tax Division Court of Federal Claims Section Post Office Box 26 Ben Franklin Post Office Washington, D.C. 20044 (202) 307-6580 EILEEN J. O'CONNOR Assistant Attorney General DAVID GUSTAFSON Chief, Court of Federal Claims Section 06/11/2007 Date s/David Gustafson Of Counsel

Attorneys for the Defendant

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2514544.11

Case 1:05-cv-00299-EJD

Document 39

Filed 06/11/2007

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