In Uncategorized on 10/13/2020 at 18:47

IRS is trying to toss the second of two (count ’em, two) of petitioner’s experts in YA Global Investments, LP f.k.a. Cornell Capital Partners, LP, et al., Docket No. 14546-16, filed 10/13/20, but Judge James S (“Big Jim”) Halpern won’t let them.

The issue is the value of the stock of an Australian mining company, which YA held but was in “administration,” which apparently is Australian for bankruptcy.

IRS says YA’s expert, whom I’ll call Dos, is trying to wild-card in Australian bankruptcy law, on which he admittedly isn’t an expert, but a humble CPA, “accredited in Business Valuation, and …certified in Financial Forensics by the American Institute of Certified Public Accountants.” Order, at p. 1.

 Judge Big Jim won’t buy it.

“[Dos] assumption that the entry of [Australian miner] into voluntary administration in Australia worked a moratorium on the contractual remedies of [Australian miner’s] creditors does involve assumptions about the legal rights of [Australian miner’s] creditors and others. Nevertheless, we agree with petitioners that valuation experts often are called upon to determine the value of rights in property that are given substance by rules of law, i.e., a tenancy in common or copyright. If [Dos]’s understanding of voluntary administration in Australia erroneous, we assume that respondent will be prepared to correct him if his report is received into evidence as his direct testimony and respondent undertakes cross examination.

“And respondent will have a like opportunity to show that [Dos]’s analysis is insufficient. Respondent has not persuaded us that [Dos] ‘s report is unreliable, irrelevant, and speculative. We will have ample opportunity to exercise our gatekeeper authority after [Dos] is accepted as an expert, his report is proffered as his direct testimony, and respondent exercises his right to voir dire. See Fed. R. Evid. 702; Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993).” Order, at p. 3.

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