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Group) for the purchase of petitioner’s aviation-related
businesses as well as various assets held by petitioner,
petitioner’s wife, petitioner’s companies, and the two other PLG
shareholders, Craig Orrock and William Acor, a close friend of
petitioner’s. Petitioner and Mr. Acor retained interests in the
new company, Eagle Group, once the sale was completed. Included
in the businesses bought by Eagle Group were Lang and PLG. The
sale was negotiated for approximately $5 million. Petitioner was
to receive $2,410,050, paid in cash and in installments from
Eagle Group with additional periodic payments to petitioner and
Mr. Acor totaling more than $500,000. Eagle Group also agreed to
assume $637,929.98 in liabilities held by the various companies
sold in the deal. This did not include the remaining $100,000
petitioner claims PLG owed him.
Out of the total purchase price, petitioner allotted
$177,500 for the sale of PLG. The sum was divided so that
$176,500 was for goodwill, and the remaining $1,000 was for the
assets of PLG, including the rest of the salvaged plane. Those
assets were sold for below fair market value. PLG never received
the funds; instead, petitioner accepted the payment directly.
Though Eagle Group agreed to assume the notes held by other
businesses sold in the deal, petitioner did not try to convince
Eagle Group to assume the alleged liability owed to petitioner by
PLG for the outstanding $100,000 balance, nor did he structure
the disbursement among his companies so that PLG had enough money
to pay off its creditors, including petitioner. The liabilities
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Last modified: May 25, 2011