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MATHENA v. UNITED STATES

No. 25027.

446 F.2d 560 (1971)

Carl E. MATHENA and Helen B. Mathena, Plaintiffs and Appellees, v. UNITED STATES of America, Appellant.

United States Court of Appeals, Ninth Circuit.

July 29, 1971.

Attorney(s) appearing for the Case

Karl Schmeidler, Atty., Dept. of Justice (argued), Johnnie M. Walters, Asst. Atty. Gen., A. Jerry Busby, Tax Div., Washington, D. C., Richard K. Burke, U. S. Atty., Phoenix, Ariz., for appellant.

Julian F. Weltsch (argued), James P. Cunningham, of Cunningham, Tiffany, Weltsch & Scott, P.A., Phoenix, Ariz., for appellees.

Before CHAMBERS and HUFSTEDLER, Circuit Judges, and TAYLOR, District Judge.

CHAMBERS, Circuit Judge:

The decision of the district court allowing a refund is affirmed.

Mathena, prior to July 1, 1963, was employed by Akron Savings & Loan Association (Akron), doing business in Akron, Ohio.1 Closely allied with Akron was Bankers Guaranty Title & Trust Company (Bankers).2

An arrangement was made under which Mathena could "eat his cake and keep it, too." He drew his...

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