- 3 -
FINDINGS OF FACT
Petitioner, along with his wife and mother, incorporated
National Travel Management, Inc. (National), in December 1986 in
order to start a retail travel business. They became the
corporation's initial officers and shareholders. In February
1987, an erstwhile coworker, Fred Burkhalter (Burkhalter),
approached petitioner and indicated his interest in entering the
travel business as well. Burkhalter informed petitioner that he
knew others who were eager to invest in such a venture. After
careful consideration, talks commenced between petitioner and
these individuals, and a deal was struck.
Upon completion of the negotiations, the stock of National
was held as follows: 33 percent by petitioner; 11 percent by Jim
Brands (Brands); 22 percent by Bob Tucker (Tucker) or Tavistock
(a Georgia general partnership of which Tucker was the general
partner); and 33 percent by Burkhalter. A total of $900 was
contributed for the stock of National, of which amount petitioner
paid $300. Petitioner was named president of National.
On May 27, 1987, petitioner, acting as president of
National, executed a note to himself in his individual capacity
(the Fries note) in the amount of $74,700. The Fries note called
for 120 installments of principal and interest in the amount of
$946.29 each. The first payment was due on June 28, 1987, with
each subsequent installment due on the 28th day of each month
thereafter, through May 1997. Petitioner did not insist on
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011