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

Case 1:05-cv-00299-EJD

Document 35

Filed 10/12/2006

Page 1 of 3

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 June 7, 2006, the parties hereby provide this Joint Status Report and request that the Court renew 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 is now scheduled to begin in January 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. A renewal of 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

-1-

941.1

Case 1:05-cv-00299-EJD

Document 35

Filed 10/12/2006

Page 2 of 3

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 parties support a renewal of 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 January 15, 2007, to advise the Court of the status of the criminal proceedings in Stein and settlement prospects. Pursuant to Court's order dated June 7, 2006, and after consultation with the Court's chambers, the parties propose that, if the Court would still like to hold a telephonic status conference with counsel in light of the facts presented in this status report, that the conference be scheduled on November 9, 2006, at 2:30 p.m. EST. If that date is not acceptable to the Court, counsel propose the dates and times set forth below. Counsel for plaintiff will be working in Europe that week, but would be able to call into the Court from abroad. October 26, 2006, at 11:00 a.m. EDT October 26, 2006, at 2:30 p.m. EDT

-2-

941.1

Case 1:05-cv-00299-EJD

Document 35

Filed 10/12/2006

Page 3 of 3

Respectfully submitted, October 12, 2006 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 October 12, 2006 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 October 12, 2006 Date s/David Gustafson Of Counsel

Attorneys for the Defendant

-3-

941.1