Tax agency settles case with ex-attorney


Attorneys for businesses audited by Prager said that he was overly aggressive.


LaFaver called Prager's allegations about the department "mere fantasy." He said Prager's communique to Graves constituted gross misconduct because it disclosed privileged information about taxpayers.


But Prager, in lawsuits filed in state and federal court, insisted his client was the state of Kansas, not the revenue agency.


He said the state's whistle-blower law prohibited the department from firing him for reporting what he believed to be illegal activities.


During a State Civil Service Board hearing last March, Prager said, "I wish to be vindicated and have my honor and dignity affirmed through these proceedings."


The board declined to order the department to reinstate Prager.

Portions of Prager's federal lawsuit were dismissed. And Shawnee County District Judge Terry Bullock dismissed all of his state complaint.


But last spring, the Kansas Supreme Court reinstated two of the seven counts in the state lawsuit and sent the case back to the lower court for trial.


Rather than go to court, the department negotiated a settlement.

"All of the contested matters between David Prager and the Kansas Department of Revenue have been resolved," said Shirley Sicilian, the department's general counsel in a brief written statement on Monday. "Appropriate documentation is being prepared and all lawsuits will be dismissed."

Spokesman Scott Holeman said the department wasn't at liberty to disclose the settlement amount.

A lawyer in the attorney general's office who handles open records cases wasn't immediately available to comment on whether settlements paid with state funds can be kept confidential.


Reached Monday evening, Prager, who now serves as counsel for the Prairie Band Potawatomi Indian tribe, confirmed that a settlement had been reached but declined further comment.


Prager is the son of former Kansas Supreme Court Justice David Prager.

Jim McLean can be reached at

(785) 233-7470 or jmclean@cjonline.com.

Copyright 2001
Provided by ProQuest Information and Learning Company. All rights Reserved.

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