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Some of the formal manifestations of a joint venture are
absent here due to the need to keep petitioner’s involvement in
the enterprise undisclosed. Other than that aspect, petitioner
advanced funds for the purpose of making a profit from the
government road construction. Cities was the instrumentality
used to obtain preferred treatment for Ms. Jackson’s status as a
minority and/or woman owner. Without petitioner’s involvement,
Cities was a mere shell without funding. Petitioner brought his
government experience and financial capability, and Ms. Jackson
brought her entrepreneurial skills, experience, and preferred
status to the venture.
The relationship between petitioner and Ms. Jackson (and her
corporate business, Cities) came about due to Ms. Jackson’s
financial difficulties. Cities, a corporation, was formed to
address several needs and interests. Ms. Jackson was attempting
to recover from financial difficulties and labor problems that
she had encountered in a prior enterprise. Significantly,
Cities' capital ownership was structured to take advantage of
affirmative action contracting policies. Ms. Jackson owned 80
percent of the voting common stock, which entitled Cities to the
preferred status of a "minority business enterprise" and a "woman
business enterprise".
Petitioner entered into a joint venture with Ms. Jackson to
use Cities to accomplish the venturers’ goal of obtaining local
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