News briefs

Friday, Feb. 18, 2000 | 11:32 a.m.

Laxalt, IRS fighting over nearly $200,000

The fallout from the collapse of one of America's largest law firms includes a dispute between former Nevada governor and U.S. Sen. Paul Laxalt and the IRS over a $198,348 tax bill.

The dispute goes back to the insolvency in 1988 of Finley, Kumble, Wagner, Heine, Underberg, Manley, Myserson & Casey, then with 700 lawyers the nation's fourth largest law firm.

Laxalt had been a general partner operating in the firm's Washington office. After Finley, Kumble went belly-up, each partner was responsible for part of the $100-million-plus it owed creditors. Most of the partners helped to repay some of the creditors.

Effective in 1992, the firm was allowed to reorganize under Chapter 11 of the Bankruptcy Code. Finley, Kumble's still-outstanding debt was canceled, and many partners were relieved of responsibility for their share. In Laxalt's case that was $621,196.

But the Internal Revenue Service saw this as the equivalent of additional income, thus raising his total 1992 taxable income to $1,586,833. The result was a $198,348 increase in his income tax, which the IRS demanded last December.

On Feb. 11 Laxalt filed a petition asking the U.S. Tax Court to find the IRS wrong and saying he had no obligation to treat the forgiven debt as income.

3 adults, 7 teens detained by police

Three adults and seven juveniles from two rival gangs were charged Thursday in connection with a shooting near an elementary school last week, North Las Vegas Police said.

Walter Clark, 19, Donte Eteen, 18, and Tomika Cartwright, 18, were charged with attempted murder. The seven juveniles were charged with various crimes, said Lt. Chris Larotonda, police spokesman.

The incident occurred in the 2600 block of Revere Street near H.P. Fitzgerald Elementary School on Feb. 10 at about 1:30 p.m. Several juveniles from one gang went to the area to beat up a Cheyenne High School student, member of a rival gang, police said.

Friends and gang members of the Cheyenne students arrived. Esteen is accused of firing several shots at the gang members gathered to batter the Cheyenne student. One of the shoots hit one of the juveniles in the foot, police said.

A juvenile from the opposing gang returned fire. The two groups then fled the area, police said. The juvenile that was hit in the foot was treated at a local hospital.

Patrolman's grievance against agency denied

The Nevada Supreme Court has dismissed the petition of Nevada Highway Patrolman Ken Gager who has sued the patrol charging it is trying to fire him after he lost one eye and a hand in a mail bomb at his home.

His suit, filed in 1998, says there have been three attempts to fire him and he has not received any merit pay raise or promotion in his present job. He claims the patrol and the state Department of Motor Vehicles and Public Safety are violating the federal law on treatment of the disabled in employment.

His petition to the Supreme Court asked that it allow his case to avoid arbitration before it goes to trial. It was originally set for trial for January. But arbitration has been ordered. Gager, through his lawyer Jack Kennedy, filed a motion to eliminate the arbitration requirement.

The court said Thursday it would not intervene in the District Court proceedings in Carson City at this time.

High court upholds murder sentences

The Nevada Supreme Court has rejected appeals from three men convicted of separate murders in Las Vegas, Reno and Lyon County.

In the Las Vegas case, the high court ruled against Morris West Jr., sentenced in November 1988 to a life term with possible parole.

In the Reno case, William Edward Branham claimed his lawyers failed to fully demand his rights during his Washoe District Court trial, including a coroner's inquest on the victim.

In the Lyon County case, Brian Simmons said his trial lawyer failed to carefully investigate his claim neighbors should have heard something unusual the night that Jason Kopack was murdered.