Xenakis v. US DEPARTMENT OF TREASURY, IRS

OPINION and ORDER OF COURT

AMBROSE, District Judge.

Manuel J. Xenakis appeals from an order of March 28, 2001, by U.S. Bankruptcy Judge Bernard Markovitz, finding that unpaid excise taxes in the amount of $871,065.00, imposed for accepting illegal wagers, and for pre-petition interest accrued thereon in the amount of $236,235.75 are not dischargeable in bankruptcy. For the reasons set forth in the Opinion which follows, the Order of the Bankruptcy Judge is reversed and the matter remanded for further consideration.

I. FACTUAL AND PROCEDURAL HISTORY 1

In December 1989, Appellant Manuel J. Xenakis,…