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145 contracts of June 1982, of which 70 were established at
$804.50 on COMEX and 75 at $803.50 on IMM.
Upon canceling the 175 gold positions on December 10, 1980,
Hunter charged petitioner a cancellation fee totaling $15,520.14.
As a result of the $1,506,000 tax loss, petitioner, for the tax
year 1980, was able to offset net ordinary income from numerous
sources totaling $1,449,151 and offset capital gains totaling
$56,849.
On December 30, 1980, petitioner's position with Hunter was
reduced by selling 21 contracts of March 1982 long position while
at the same time liquidating 21 contracts of the June 1982 short
position.
Short and petitioner were dissatisfied with the investment
advisory services rendered by FAX, and in February 1981 they
requested and obtained a refund of the $35,000 management fee,
which was recredited to petitioner's account by Hunter in incre-
ments of $28,000 and $7,000.
Short and petitioner continued to be dissatisfied with the
services provided by Hunter. Accordingly, Short contacted Bill
Kearney at Merrill Lynch to determine what commodity advising
services were available from Merrill Lynch. Petitioner retained
Merrill Lynch and invested $100,000 in an oil and gas investment
in late 1981. Merrill Lynch earned a $6,000 commission from the
investment.
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