The district court did not abuse its discretion in denying defendant attorney fees under the EAJA. Though the district court disbelieved the government’s expert witness, whose testimony was the principal evidence on which the government based its claim that defendant had overvalued the company he sold to an ESOP, the government did not anticipate that result when it went to trial, and there were other “red flags” about the transaction that gave rise to reasonable suspicion the sale was overpriced.