Opinion ID: 555478
Heading Depth: 2
Heading Rank: 2

Heading: Violation of IRS Regulations

Text: 15 Michaud's allegations that Agent Levy violated IRS regulations underlies his conflict of interest, ineffective assistance, and prosecutorial misconduct claims. Michaud claims that Rodio's failure to investigate these violations prior to and during the trial evidences Rodio's conflict of interest and constituted ineffective assistance. Michaud also asserts that the prosecution's use of evidence allegedly obtained in violation of IRS regulations constituted misconduct. However, because these allegations are either entirely speculative or have been addressed on direct appeal, they cannot support Michaud's claims. 16 Claims based on violations of IRS rules and regulations include the following: (1) Attorney Rodio improperly failed to object to introduction of evidence obtained after Agent Levy allegedly had received a firm indication of fraud and the prosecution improperly introduced such evidence; (2) Attorney Rodio failed to adequately cross-examine Agent Levy at trial to expose the inconsistency in her testimony that the case's status was civil on October 27, 1983, while her activity record of September 3, 1982 allegedly suggested a firm indication of fraud; 6 (3) the prosecution acted improperly in failing to disclose until late in the trial Agent Levy's activity record and the Fraud Referral Form 2797, 6 IRM Exhibit 9320-1 (CCH), both of which allegedly support the alleged violations of IRS regulations. 17 IRM Sec. 9322.2(1) requires that the Criminal Investigation Division notify the appropriate IRS Division Chief whether the fraud referral has been declined before investigation, after noting on the copy of the Form 2797 whether a cooperation civil revenue agent should be assigned. Michaud emphasizes that the copy of Levy's Form 2797 provided at trial carries no such notation. Michaud faults Rodio for failing to request Form 3212, presumes that Levy continued her investigation without such proper assignment request, and concludes that this alleged violation should have resulted in the dismissal of the indictment. We need only point out that Michaud incorrectly concludes that non-compliance, if proved, would require dismissal of the indictment. Though this specific IRM violation was not addressed on direct appeal, the holding there--that violations of IRS fraud referral rules and regulations do not constitute a violation of constitutional rights and therefore do not prevent Michaud's prosecution or conviction nor require suppression of evidence--is directly applicable. Michaud, 860 F.2d at 499. See also United States v. Craveiro, 907 F.2d 260, 264 (1st Cir.1990). Therefore, Michaud's allegations concerning violations of Sec. 9332.2(1), even if supported, would not warrant relief. Also insufficient is Michaud's allegation that the Criminal Investigation Division failed to accept Agent Levy's referral within the twenty working days required by IRM Sec. 4565.23(b). Such a violation, even if proven, would not have required dismissal of the indictment. 18 As for Michaud's allegation that, after finding fraud, Agent Levy improperly continued to investigate him under the guise of a civil investigation, this contention was explicitly addressed and rejected on direct appeal. Michaud, 860 F.2d at 499. Michaud's reconfigured claims here based on that same allegation therefore fail.