- 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 onPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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