Anthony Martinez II - Page 4

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          II.  Rental Payments                                                        
               In June of 1989, petitioner began operating the Business and           
          paying rent of $5,000 per month to the Dakars.  In November of              
          1989, petitioner failed to make the required rent payment.  In              
          December of 1989, he paid the November rent but failed to make              
          the December rent payment.  As a result, the Dakars filed an                
          unlawful detainer complaint against him in the Municipal Court of           
          Long Beach, California.  On March 26, 1990, the court entered a             
          default judgment against petitioner and issued a writ of                    
          possession to the Dakars with respect to the property.                      
          III.  Three Del Rey, Inc.                                                   
               On December 21, 1988, Steven K. Ledbetter, petitioner's                
          attorney in this proceeding, filed with the California secretary            
          of state's office articles of incorporation for "R/C JET                    
          SPECIALTIES, INC.".  Petitioner's name did not appear on the                
          document.  The articles indicated that the corporation was formed           
          "to engage in any lawful act or activity for which a corporation            
          may be organized" under California law.  It also indicated that             
          the corporation was authorized to issue 10,000 shares of stock.             
          The corporation, however, never issued any stock, nor did it                
          elect any directors.                                                        
               On March 28, 1989, Mr. Ledbetter filed an amendment to the             
          articles of incorporation changing the corporation's name to                
          "Three Del Rey, Inc." (the Corporation).  The Corporation filed a           






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