G. Richard and Sara B. Childs - Page 6

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               Petitioners frequently observed advertisements encouraging             
          customers of various financial institutions to conduct their                
          banking by telephone.  Petitioners assumed that they could                  
          withdraw funds from petitioner's IRA's by requesting                        
          telephonically that such accounts be converted into nonqualified            
          (non-IRA) accounts.                                                         
               During the last week of July 1990, petitioner telephoned               
          First American Bank and requested that her First American IRA's             
          be converted into non-IRA accounts prior to August 15, 1990.                
          Petitioner explained to the First American Bank employee with               
          whom she spoke (the First American employee) why such a                     
          conversion was necessary.  The First American employee told                 
          petitioner that she, the employee, would be glad to convert                 
          petitioner's accounts and assured petitioner that petitioner's              
          request would be carried out.  Based on the representations made            
          by the First American employee, petitioner concluded that all of            
          the steps necessary to withdraw her funds from the First American           
          IRA's had been completed.                                                   
               Contrary to what petitioner had been told by the First                 
          American employee, First American Bank required IRA owners to               
          execute various documents when transferring funds out of an IRA.            
          The First American employee, in assuring petitioner that                    
          petitioner's IRA's would be converted to non-IRA accounts with no           
          further action on petitioner's part, misrepresented the bank's              
          internal procedure of converting an IRA into a non-IRA account.             




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