Was Conservative Targeted By Department of Revenue for Political Reasons?

April 2001
By Evelyn Reilly

A federal judge has refused to dismiss a suit by Eric Bleicken who says he was targeted by the state's Department of Revenue because of his conservative political stands for family values and his opposition to special privileges for homosexuals.

According to Bleicken, former commissioner Mitchel Adams is a homosexual activist.

Bleicken claims he was wrongly assessed $44,889.28 in taxes in 1995 but was quickly straightening out the erroneous assessment until he announced his candidacy for the state senate. Three days later, the state filed liens for $47,584.91 and seized his bank account and the savings account of his ten-year-old son.

The defendants are former Commissioner Mitchel Adams, his attorney, Peter Kortkemp, and an employee of the DOR in Barnstable, Joseph Cestaro.

At a hearing last month at the new Federal District Courthouse in Boston, Chief District Court Judge Joseph L. Tauro refused to dismiss the case.

Assistant Attorney General, Anne S. Edwards, acted as lawyer for the defendants although they have been sued as individuals. She tried to have the case dismissed, saying no tax laws were violated and he had gotten all his money back, so there was no case.

The judge disagreed, however, saying the issue was not about the tax laws or process but about the Constitution. He said, "Suppose two agents came over to his house and beat him up, but he got his money back. Are you saying he'd have no case? He is claiming he was beaten up, in a different way."

Judge Tauro denied the Motion to Dismiss and gave both sides until the end of May to depose each other in preparation for a trial.

If it is found that that the defendants deliberately violated Bleicken's rights, they would not be covered by the state's immunity.

Candidate in 1995 and 2000

In 1995 Bleicken ran as a conservative third party candidate for the State Senate against the liberal Republican, Henri Rauschenbach for the Cape and Islands District. In 2000 he was a Republican candidate for Congress against liberal Democrat Congressman, Bill Delahunt.

He claims that three employees of the Department of Revenue tied up his assets for three years, threatening his business, forcing him to live hand-to-mouth and ruining his credit and his two political campaigns.

According to his attorney, Greg Hession, "They are accused of personally violating Mr. Bleicken's civil rights, while 'acting under color of law,' meaning that they improperly used their position as state actors, with the power of the law on their side, to do so."

The complaint says the defendants "abused their discretion and/or their power for the improper and illegal ulterior purpose of frustrating the political candidacy of Eric Bleicken."

Ordeal Began in 1995

Bleicken says his ordeal began in January of 1995 when the state sent a Notice of Intention to Assess. He responded to the Notice that he was not a legal resident of the state for the year in question, he had a matter before the U.S. Supreme Court which would affect his income taxes, and he would file tax forms as soon as a decision was rendered.

Two months later the state sent a Notice of Assessment for $44,889.28 based on an erroneous federal Revenue Agent's Report dated November 1991.

Bleicken was in the process of correcting this when the Cape Cod Times announced his candidacy for the State Senate. Three days later, Cestaro seized his checking account and the savings account of his son.

Consequently, Bleicken claims his personal and business life was devastated by having no bank accounts, a foundering business, a destroyed credit history, the undermining of his Senate campaign and "preclusion from professional employment consistent with Mr. Bleicken's education and background."

He wrote to the then treasurer of the state, Joseph Malone, who forwarded his letter to the defendant Adams. The letter Mr. Bleicken received in response justified Cestaro's actions without addressing the evidence.

In June 1996, Louise Adler of the state's Abatement Bureau determined that no taxes were owed for three of the four years in question. The Bureau claimed he only owed $6679 (which he also denies). Despite the Bureau's determination of a drastically reduced debt, the $48,000 lien was not lifted.

Bleicken appealed to the Appellate Tax Board and met with defendants Comm. Adams and Atty. Kortkemp, who assured him that this was a simple matter that could be cleared up quickly. Bleicken was put at ease and then discussed his campaign with them, leaving some campaign literature with them.

Bleicken says he was unaware at the time that Comm. Adams, a Republican appointee, had a history of bashing non-custodial fathers in the media. Bleicken's campaign literature clearly expressed his advocacy of fathers' and children's rights, and also specifically expressed his opposition to special privileges for homosexuals.

The matter then dragged on for another two years, including a demand for thousands of pages of documents, half a dozen hearings and numerous continuances filed on behalf of Comm. Adams by Kortkemp. Finally in April 1997, Kortkemp offered to settle for $127 plus penalties and interest, but then refused to settle when Bleicken wanted an understanding that the money would be returned if he prevailed at trial.

Finally on February 3, 1998 the Appellate Tax Board determined that Bleicken owed no tax. Yet the stigmatizing $48,000 lien continued in force.

Five months later, when he was a candidate for Congress, Bleicken sent out a press release alleging ulterior political motives and sent copies to Treasurer Malone and Acting Governor Paul Cellucci. Only then was the lien removed, but the damage was done, says Bleicken.

All three defendants are accused of causing Bleicken irreparable injury by placing and keeping stigmatizing information in the public record, with violating his First Amendment right by severely damaging his political candidacy, violating his liberty interest under the Due Process Clause of the Fourteenth Amendment, and violating his Fourth Amendment right to Freedom from Illegal Search and Seizure.

Cestaro is charged with failing to remove the liens and release the bank accounts after irrefutable evidence was given to him that the DOR claims were erroneous and that Bleicken was acting in good faith to resolve the dispute.

Comm. Adams is charged with willfully acting to undermine Bleicken's candidacy for the State Senate after being given information about his conservative position on the issues of homosexuality and fathers' rights.

Atty. Kortkemp is accused of fraudulently concealing material evidence and intentionally misrepresenting facts to the Appellate Tax Board. The Complaint charges Kortkemp with prolonging the process for more than three years, causing irreparable injury through his bad faith actions and inactions.

 

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