George and Myrsini Stotis - Page 15

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          petitioner stated that, in exchange for surrendering rooms 103              
          and 141, he received the new apartment rent free for 3 years and            
          nothing else.  Petitioner knew this to be false.  At the second             
          meeting with Signorile, petitioner again stated that, in exchange           
          for surrendering rooms 103 and 141, he received the new apartment           
          rent free for 3 years and nothing else.  Petitioner also signed a           
          statement to that effect.  Also at the second meeting, petitioner           
          produced a copy of the sublease agreement, but he did not produce           
          a copy of the surrender agreement.  We conclude that petitioner             
          attempted to mislead Signorile.                                             
               Petitioner argues that he is not fluent in English, and he             
          did not realize that he was required to report the amounts                  
          received from Seawall.  Courts have considered the educational              
          level and sophistication of the taxpayer when considering the               
          Commissioner's fraud determination.  Id. at 19.  When Seawall               
          initially approached petitioner about vacating rooms 103 and 141,           
          petitioner contacted Spyropoulos.  Spyropoulos represented                  
          petitioner when the surrender agreement and sublease agreement              
          were negotiated.  Spyropoulos spoke fluent Greek, and he                    
          explained the agreements to petitioner.  The affidavit of                   
          Caramalis attached to the surrender agreement indicates that                
          Caramalis read and explained to petitioner, in the Greek                    
          language, the terms of the surrender agreement.  On November 14,            
          1989, petitioner entered into the surrender agreement and the               
          sublease agreement with Seawall.  When it came time for                     




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