UNITED STATES v. ERNST & WHINNEY

No. 84-3283.

750 F.2d 516 (1984)

UNITED STATES of America; Philip E. Coates, Plaintiffs-Appellees, v. ERNST & WHINNEY; Ray Groves, Defendants-Appellants.

United States Court of Appeals, Sixth Circuit.

Decided December 12, 1984.

Rehearing and Rehearing Denied January 30, 1985.


Attorney(s) appearing for the Case

Ellis McKay, Maynard F. Thomson, Jones, Day, Reavis & Pogue, Cleveland, Ohio, Daniel F. Kolb (argued), William H. Colby, Davis, Polk & Wardwell, Jerome G. Snider, Nancy R. Grunberg, Washington, D.C., for defendants-appellants.

John M. Siegel, Asst. U.S. Atty., Cleveland, Ohio, James H. Jeffries, III, Robert G. Nath, Charles E. Brookhart/Wm. Whitledge (argued), U.S. Dept. of Justice, Tax Div., Michael L. Paup, Glenn L. Archer, Jr., Washington, D.C., for plaintiffs-appellees.

Before MERRITT and WELLFORD, Circuit Judges; and CELEBREZZE, Senior Circuit Judge.


Rehearing and Rehearing En Banc Denied January 30, 1985.

WELLFORD, Circuit Judge.

In the course of conducting audits of taxpayers subscribing to an investment tax credit (ITC) study marketed by Ernst & Whinney, (E & W), a national accounting firm, in the southeastern part of the United States, the Internal Revenue Service (IRS) discovered what it considered to be a pattern of improper and questionable practices employed by E & W in that study....

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