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as his 50 percent of the net proceeds, $4,000 in 1977, $12,000 in
1978, and $20,000 in 1979. No payments were made by the
corporation on the $111,000 "investment certificates".
Sometime in 1980, upon his return from a European business
trip, petitioner discovered that Mr. Takos had sold all of the
corporation's inventory of local properties and absconded to the
State of Florida with the proceeds and most of the corporate
records. Petitioner filed a shareholder's derivative suit
against Mr. Takos on behalf of the corporation. On October 22,
1984, a State court in Iowa rendered a judgment against Mr. Takos
and his wife (judgment debtors) in favor of the corporation for
$203,948.42 in actual damages, $125,000 in punitive damages, and
reasonable attorney's fees. Pursuant to Iowa law, a receiver was
appointed to collect the assets of the corporation, including the
judgment against Mr. Takos and his wife, and to liquidate the
corporation. The receiver soon determined, by January 1985, that
there were no assets of the judgment debtors in the State of
Iowa, nor did the judgment debtors have any significant assets in
Florida on which the judgment could be satisfied. Furthermore,
the attorney in Florida who had been employed to examine the
judgment debtors stated: "I don't believe that further
collection efforts will be worthwhile." In his Application to
Terminate Receivership and Final Report, dated January 11, 1985,
the receiver reported that there were no corporate assets in the
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