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Mr. Ruf's Performance of Services for Petitioner9
When Mr. Ruf became responsible for petitioner's management
in March 1986, he became petitioner's CEO and president. As
such, he was responsible for all duties and functions relating to
petitioner's management and operations, including day-to-day
operations, marketing, human resources, merchandising, adver-
tising, check writing, accounts receivables, relations with
suppliers and noteholders, and real estate negotiations. For at
least the first two or three years after he became petitioner's
CEO, Mr. Ruf worked 12 to 15 hours a day, six to seven days a
week. With the exception of one employee who was made an officer
for the sole purpose of acting on petitioner's behalf in small
claims court and Mr. Lyons who became petitioner's chief finan-
cial officer (CFO) in either March 1989 or March 1990,10 Mr. Ruf
was petitioner's only officer. Beginning at least as early as
March 1987 and continuing throughout the years at issue, Mr. Ruf
was the sole member of petitioner's board of directors.
9 The record is unclear as to when certain services were per-
formed by Mr. Ruf for petitioner. However, the record indicates
that many of the results of Mr. Ruf's services first appeared
during petitioner's fiscal year ended Feb. 28, 1987, and that Mr.
Ruf continued to provide extensive services to petitioner
throughout the years at issue. Unless otherwise indicated, our
discussion herein relating to Mr. Ruf's performance of services
for petitioner relates to the period that started in March 1986
when Mr. Ruf became petitioner's CEO and ended on Feb. 28, 1991.
10 The record is unclear as to the year in which Mr. Lyons
became CFO.
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