resided in Florida, Vincent H. Beckman, who resided in Ohio, and
John W. Kreutzcamp, who resided in Indiana. Mr. Hathaway served
as Mr. Kluener's financial and tax adviser prior to Mr. Kluener's
death. At the time the petition in the instant case was filed,
Ms. Kluener resided in Cincinnati, Ohio.
During relevant times, each of the Klueners maintained an
account (agency account) with the Fifth Third Bank (Fifth Third
or bank) in which the bank held securities as the account
holder's agent. As of July 31, 1989, the market value of the
securities held in Mr. Kluener's agency account was
$5,081,394.79. As of June 30, 1989, the market value of the
securities held in Ms. Kluener's agency account was
$7,536,314.33. As of September 30, 1989, Mr. and Ms. Kluener
each held securities in separate street accounts with Legg Mason
Wood Walker, Inc. (Legg Mason), that were valued at $213,088 and
$201,426, respectively.
Additionally, during 1989, Mr. Kluener owned interests in
certain highly leveraged real estate ventures, to which he had
advanced $12,200,000. Mr. Kluener had borrowed those funds from
Fifth Third in the form of personal unsecured loans. The
interest that Mr. Kluener collected from the ventures with
respect to his loans to them afforded him a source of funds from
which to pay the interest on his personal debts to Fifth Third.
Due to changes in the tax law by the Tax Reform Act of 1986 and
saturation of the real estate market, real estate values fell,
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