David L. Samuel - Page 9




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          petitioner’s interest in his civil lawsuit, his ownership                   
          interest in his medical practice, or his interest in                        
          Pontchartrain Lithotripsy.                                                  
               On March 2, 2005, petitioner responded to the preliminary              
          determination letter.  In his letter he said that when he “lost             
          his job” practicing with another urologist in 2002, he                      
          accumulated substantial debt setting up his new medical practice            
          and paying necessary living expenses and fell behind on his child           
          support payments.  The letter claimed that the payments made from           
          the funds realized from the FMC sale in July and home refinancing           
          in September 2003, were necessary to pay judgments rendered                 
          against him and to avoid additional legal proceedings.                      
          Petitioner provided details on the distribution of the proceeds             
          of these two transactions.  He alleged that he distributed the              
          $108,000 from the sale of his interest in FMC as follows:                   
               Payee                              Payment Amount                      
               City Bank (credit card debt)*      $13,591.78                          
               City Bank (credit card debt)*      12,468.72                           
               First USA (credit card payoff)     2,745.69                            
               MBNA (credit card payoff)**        30,000.00                           
               IRS (2003 estimated tax payment)   15,600.00                           
               Child support payments             5,464.02                            
               Hibernia Bank (loan repayment)     8,820.20                            
               Whitney Bank (credit line)         4,709.59                            
               William A. Neilson (legal fees)    4,000.00                            
               Paul Lea (legal fees)              5,000.00                            
               Diane Cherry (legal fees)          3,000.00                            
               Pedalhore (accounting fees)        1,600.00                            
               Fintech (accounting fees)          1,000.00                            
               *Payment pursuant to court judgments                                   
               **Lawsuit filed against petitioner                                     







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