- 4 - B. Seattle Pump Company, Inc. 1. Sale to Petitioners Petitioner’s brother, Thomas Malone, is an attorney who represented Helene Voier (Voier), the owner of Seattle Pump. She wanted to sell her Seattle Pump stock. Petitioner studied Seattle Pump’s books and records. He concluded that it had been profitable and that he could earn wages of $70,000 per year from it. On December 19, 1986, petitioners bought all of the Seattle Pump stock from Voier. Petitioners agreed to pay $362,000 to Voier as follows: (a) $50,000 by January 1, 1987; (b) $50,000 by January 2, 1987; and (c) $262,000 by January 1, 1989, with 9 percent interest. Seattle Pump's records of accounts receivable and payable were not very accurate. Petitioners agreed to increase the purchase price of Voier’s stock later based on the accounts receivable and payable. Voier agreed to finance the sale if petitioners gave security other than Seattle Pump stock. On December 19, 1986, petitioners signed a $312,000 promissory note payable to Voier. The note required petitioners to pay $50,000 by January 2, 1987, and to make monthly payments of $2,500. The balance was payable by January 1, 1989, with interest at 9 percent. On December 19, 1986, petitioners borrowed $50,000 from Seattle Pump’s cash reserves to make a downpayment to Voier.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