James H. Upchurch - Page 17

                                        - 17 -                                          
          technical aspects of the energy-device transaction, such                      
          reliance, considering petitioner's background and experience, did             
          not rise to the level of the duty of care standard that would be              
          reasonable in these circumstances.  Petitioner has not shown that             
          Mr. Pecha, other than his background in chemistry, had any                    
          specialized knowledge or technical qualifications necessary to                
          assess the effectiveness or economics of the energy device in                 
          question.  There is no indication that Mr. Pecha ever personally              
          observed the device or that he had conducted independent research             
          concerning it.  Considering petitioner's level of education and               
          his limited understanding of the mechanics of the transaction,                
          his reliance on Mr. Pecha was not reasonable.                                 
               Petitioner also claims that the accountant, Mr. Shriver,                 
          assured him that the energy-device transaction was a proper                   
          investment.  In this regard, petitioner also contends that Mr.                
          Shriver was an independent certified public accountant, so as not             
          to be connected with the promoters or to have a financial                     
          interest in the sale of the investment.  Petitioner's claim of                
          Mr. Shriver's independence is not supported in the record.  To                
          the contrary, Professional's (a self-proclaimed promoter or                   
          seller of tax shelters) brochure contains the following statement             
          about Mr. Shriver:                                                            
               We arrange for a qualified tax specialist to be                          
               available for consultation and to provide accounting                     
               services to whatever extent you may need.  By                            
               appointment, an initial hour of time with David                          
               Shriver, C.P.A.,is provided with your financial plan.                    




Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011