Opinion ID: 42252
Heading Depth: 2
Heading Rank: 2

Heading: Looney’s Evidentiary Proffers

Text: During the trial, Looney named several witnesses that he wished to call. First, Looney indicated that he wished to call Chappell as a witness to explain the advice that he gave to Looney. The government responded that Chappell’s testimony regarding what Chappell told Looney in 2003 was irrelevant to what Looney knew in 1995, 1996, 1997, and 1998. The district court determined that Looney could not call Chappell because Chappell’s testimony was hearsay, irrelevant to Looney’s reliance defense, and unnecessary since Looney already had testified about Chappell’s advice. Looney and the government then stipulated that Chappell’s testimony would have been that he told Looney: (1) to file amended tax returns for 1995 and 1996; 4 (2) to file a tax return for 1997; (3) to include in those returns the income in the UBTO, which previously was unreported income received from Starlight; and (4) to wait to file tax returns for 1998 through 2002 until Looney received a status determination letter from the IRS. The parties also stipulated that Chappell told Looney that his previously held belief that the trust was not taxable “would not hold up in court.” The stipulations were published to the jury. Looney also indicated that he intended to call Fuselier, who, in 2003, prepared Looney’s amended 1995 and 1996 and original 1997 tax returns. Looney indicated that Fuselier would explain the figures. The district court stated that it would exclude Fuselier’s testimony because it was irrelevant to Looney’s state of mind in 1995 and 1996. Finally, Looney stated that he intended to call his friend, Simmons, to testify about Looney’s meetings with the IRS and what Simmons told Looney about UBTOs. The district court stated that it was concerned that Simmons’s testimony would confuse the jury, determining that it only would allow Simmons to testify: (1) about conversations that he was present for; and (2) that he advised Looney about UBTOs and sold the trust to Looney.