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trading decisions in the future on behalf of petitioner. Short
was very interested in the Hunter program and advised petitioner
of the substance of the initial meeting with Russ Klein. Short
testified that he did not receive the promotional material nor
learn about the favorable tax benefits of straddle trading in the
Hunter program until his final meeting with Klein, which peti-
tioner attended.
Petitioner testified that he reviewed the Hunter promotional
material, including "Summary of Federal Income Tax Consequences"
and discussed the tax consequences of the Hunter program with
Short prior to making his actual Hunter investment. Petitioner
did no further research regarding the Hunter program. Petitioner
testified that he did not check into any of the credentials of
the individuals who wrote the Hunter promotional material.
Petitioner decided to make his investment with Hunter in
December 1980 based on the information Short obtained from his
meetings and conversations with Klein and due to repeated calls
from Klein urging him to make an investment with Hunter immedi-
ately. Klein's reason for wanting petitioner to invest at that
time was that the volatility of the gold market presented an
opportunity for immediate tax benefits. Short testified that
some of the considerations for investing in Hunter programs at
that time were to maximize profits during a volatile market and
to take advantage of the tax benefits.
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