- 4 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011