Kent J. and Ruth W. Dawson - Page 4

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               Petitioner informed Geldbach that he was seeking the type of           
          investments that would provide initial tax benefits and future              
          income.  Geldbach recommended that petitioner invest in a variety           
          of limited partnerships, including Medical Science Associates               
          (MSA).3  MSA was engaged in the production, marketing, and                  
          distribution of medical educational video tapes (the tapes) for             
          continuing medical education of primary care physicians.  The               
          tapes were produced by Hahnemann Medical College and Hospital of            
          Philadelphia (Hahnemann) in a series of approximately 20 programs           
          centered around one medical subject area.  At issue in this case            
          is the "Therapeutics through Exercise; Sports Medicine and                  
          Chronic Pain Management in Clinical Practice" series.                       
               Petitioner was familiar with continuing legal education for            
          attorneys and was aware that similar requirements for physicians            
          were being proposed.  Prior to investing in MSA, petitioner                 
          consulted with Geldbach with respect to its tax benefits and                
          income potential, and thoroughly reviewed MSA's private placement           
          memorandum (the offering materials or memorandum).  Petitioner              
          testified that he also consulted with his accountant David                  
          Andrews (Andrews) who informed him that he was not qualified to             



          3    The remaining partnerships included: (1) Balanced Oil and              
          Gas Drill/Production Fund; (2) Krypton Associates; (3) Genetic              
          Bank, Inc.; (4) Seigler Partners Ltd.; and (5) Finalco Equipment            
          Investors XI.  Each reported significant ordinary losses and tax            
          write-offs.                                                                 





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