- 22 - with Professional and Evergreen. His reliance in this setting was not reasonable and/or in good faith. Petitioner had no prior experience with Mr. Shriver, who was connected with the promoter/seller of the investment. In a similar manner, petitioner's friend, Mr. Chalich, was not qualified regarding the technical aspects or physical properties of the investment. In addition, as a salesman for Professional, he was not independent. As noted in the discussion concerning the addition to tax for negligence, it was not reasonable for petitioner to rely on Professional and its agents and associates because they earned fees in connection with the sale of the tax shelters. Furthermore, the individuals petitioner relied upon lacked not only independence, but also any specific expertise concerning the subject matter of petitioner's investment vehicle. We again note that petitioner, a college graduate with an advanced degree, was knowledgeable about the manner in which the transaction was to operate and that he would receive cash $3,000 greater than his out-of-pocket investment. Also, petitioner was aware that the energy device was to be leased and that it had a substantial value. Even though he stated that he was relying on the investment for his retirement, he took no actions to determine if the device existed, was in use, or had value. After he received his $3,000 plus return, he did virtually nothing that would have supported the assertions he made in this case.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