Opinion
2:03-mc-2-FtM-29DNF
December 30, 2003
ORDER
On December 1, 2003, United States Magistrate Judge Douglas N. Frazier submitted a Report and Recommendation (Doc. #15) to the Court recommending that Respondents be found in contempt of court in connection with the failure to comply with certain aspects of an Order (Doc. #4) entered on May 13, 2003, by the undersigned. No objections have been filed, and the time to file such objections has expired.
I.
After conducting a careful and complete review of the findings and recommendations, a district judge may accept, reject or modify the magistrate judge's report and recommendation. 28 U.S.C. § 636(b)(1);Williams v. Wainwright, 681 F.2d 732, 732 (11th Cir. 1982),cert. denied, 459 U.S. 1112 (1983). A district judge "shall make a de novo determination of those portions of the report or specified proposed findings or recommendations to which objection is made." 28 U.S.C. § 636(b)(1)(C). This requires that the district judge "give fresh consideration to those issues to which specific objection has been made by a party." Jeffrey S. by Ernest S. v. State Bd. of Educ. of Ga., 896 F.2d 507, 512 (11th Cir. 1990) (quoting H.R. 1609, 94th Cong., § 2 (1976)). The district judge reviews legal conclusions de novo, even in the absence of an objection. See Cooper-Houston v. Southern Ry. Co., 37 F.3d 603, 604 (11th Cir. 1994).
II.
On August 18, 2003, the Court entered an Order to Show Cause (Doc. #8) directing respondents to show cause why they should not be held in contempt for failure to comply with the Court's May 13, 2003 Order enforcing three Internal Revenue Service summons and directing the signing of Authorization and Direction to Disclose Information forms. Respondents, through counsel, filed a Response to Order to Show Cause (Doc, #10). The assigned magistrate judge conducted a show cause hearing on September 30, 2003, and issued the Report and Recommendation (Doc. #15) on December 1, 2003.
After reviewing the Report and Recommendation and the record, the Court fully agrees with the findings of fact and conclusions of law made by the magistrate judge. The Court finds that respondents were not in contempt of court when they appeared and gave testimony in response to the May 13, 2003 Order enforcing the three IRS summons. The Court further finds that respondents are each in contempt of court for failing to use all reasonable efforts to obtain their account records and statements from Leadenhall Trust Company LTD and are in contempt of court for signing the Authorization and Direction to Disclose Information forms with the qualifying language "Signed pursuant to court order only, and under duress, all rights reserved." Respondents will be allowed to purge the contempt in the manner described below, and in the absence of such purging conduct will be sentenced by the Court for their contempt.
Accordingly, it is now
ORDERED:
1. The Magistrate Judge's Report and Recommendation (Doc. #15) is accepted and adopted, and it is specifically incorporated into this Order.
2. On or before January 16, 2004, respondents Lawrence A, Hall and Annette C. Hall shall: (a) sign Authorization and Direction to Disclose Information forms with their respective signatures only, without any qualifying language or verbiage, and (b) provide the signed forms to the Internal Revenue Service by serving the forms on Revenue Agent Michael Rovnak or his designee. A copy of the Authorization and Direction to Disclose Information forms to be signed are attached to this Order.
3. On or before January 16, 2004, respondents Lawrence A. Hall and Annette C. Hall shall make all reasonable efforts to obtain their account records and statements from Leadenhall Trust Company LTD or to have such records provided to the Internal Revenue Service, and shall provide Revenue Agent Rovnak with confirmation of such efforts on or before January 23, 2004.
4. On or before February 6, 2004, respondents Lawrence A, Hall and Annette C. Hall shall provide their account records and statements from Leadenhall Trust Company LTD to Revenue Agent Rovnak or his designee if these records and statements have not been provided by Leadenhall Trust Company LTD directly to the Internal Revenue Service.
5. On or before February 13, 2004, the Internal Revenue Service shall file with the Court a Notice as to whether the three summons have been satisfied.
6. If the Internal Revenue Service files a Notice that the three summons have not been satisfied, a sentencing hearing will be conducted before the undersigned on February 23, 2004, at 4:00 p.m. Respondents must be present.
DONE AND ORDERED.
AUTHORIZATION AND DIRECTION TO DISCLOSE INFORMATION
I, Lawrence A. Hall, a resident of the United States of America, hereby authorize and direct any bank, financial institution, trust company, foundation, management company, or other type of entity at which I may have or may have had a bank account, asset management account, payment card account, or other financial account of any kind, or at which a corporation, trust, or other entity may have or may have had a bank account, asset management account, payment card account or other financial account of any kind on which I may have or may have had signature authority or may be or may have been otherwise authorized to draw, to disclose all information and deliver to me, or to any representative of the Internal Revenue Service, or to any attorney, diplomatic representative, or agent of the United States, copies of all documents of every nature in its possession or control that relate to such account, and this shall be irrevocable authority for so doing.This authorization and direction has been executed pursuant to that certain order of the United States District Court for the Middle District of Florida in connection with the investigation by the Internal Revenue Service for the purpose of determining the correct federal income tax liabilities of Lawrence A. Hall for the years 1999, 2000, and 2001, and the tax liabilities of Annette C. Hall for the years 1999 and 2000.
This authorization and direction shall be construed as applying to any and all financial and commercial secrecy laws of the Bahamas and any other country, which may be imposed by any constitutional, statutory, or common law, and to any contract of confidentiality, express or implied, between any entity described above and its customers, and shall be construed as consent with respect thereto, as the same shall apply to any of the accounts, companies, trusts, foundations or other entities of which I may be or may have been a relevant principal, advisor, trust protector, grantor, settlor, co-trustee, or beneficiary.
By executing this letter of authorization and direction, I am releasing and holding harmless any entity described above that discloses information and documents in accordance with directions contained herein from any liability to me under any law or agreement, express or implied, with respect to such disclosures, including any actual or potential right or obligation to resist a request for such information or documents on account of the financial and commercial secrecy laws and express or implied confidentiality agreements described above.
LAWRENCE A. HALL
AUTHORIZATION AND DIRECTION TO DISCLOSE INFORMATION
I, Annette C. Hall, a resident of the United States of America, hereby authorize and direct any bank, financial institution, trust company, foundation, management company, or other type of entity at which I may have or may have had a bank account, asset management account, payment card account, or other financial account of any kind, or at which a corporation, trust, or other entity may have or may have had a bank account, asset management account, payment card account or other financial account of any kind on which I may have or may have had signature authority or may be or may have been otherwise authorized to draw, to disclose all information and deliver to me, or to any representative of the Internal Revenue Service, or to any attorney, diplomatic representative, or agent of the United States, copies of all documents of every nature in its possession or control that relate to such account, and this shall be irrevocable authority for so doing.This authorization and direction has been executed pursuant to that certain order of the United States District Court for the Middle District of Florida in connection with the investigation by the Internal Revenue Service for the purpose of determining the correct federal income tax liabilities of Lawrence A. Hall for the years 1999, 2000, and 2001, and the tax liabilities of Annette C. Hall for the years 1999 and 2000.
This authorization and direction shall be construed as applying to any and all financial and commercial secrecy laws of the Bahamas and any other country, which may be imposed by any constitutional, statutory, or common law, and to any contract of confidentiality, express or implied, between any entity described above and its customers, and shall be construed as consent with respect thereto, as the same shall apply to any of the accounts, companies, trusts, foundations or other entities of which I may be or may have been a relevant principal, advisor, trust protector, grantor, settlor, co-trustee, or beneficiary.
By executing this letter of authorization and direction, I am releasing and holding harmless any entity described above that discloses information and documents in accordance with directions contained herein from any liability to me under any law or agreement, express or implied, with respect to such disclosures, including any actual or right or obligation to resist a request for such information or documents on account of the financial and commercial secrecy laws and express or implied agreements described above.