- 14 -
fact that Southeast had no operating history. Wilson did not
seek another opinion regarding the investment, the recycler, or
the transactions involved in the investment.
The Gilmores, Wilson, and G&W each invested $25,000 in
Southeast for a 2.91-percent interest in Southeast. Stewart was
entitled to commissions related to the Gilmores', Wilson's, and
G&W's investments in Southeast. Gilmore and Wilson were aware of
Stewart's commission arrangements with the promoters of
Southeast.
Stewart apparently introduced the Hogards to the Esplanade
investment; however, the events leading to their decision to
invest in Esplanade are unknown. In February 1982, the Hogards
invested $50,000 in Esplanade for 5.82-percent interest in the
profits, losses, and capital of Esplanade.
After the investments, Stewart had some contact with Winer,
and he received letters regarding the recyclers. The substance
or extent of any direct contacts among the Gilmores, Wilson, G&W,
the Hogards, and Winer, or any other individual associated with
Southeast, is unknown.
From 1979 through 1981, the Gilmores' average adjusted gross
income was $70,488. In 1982 their adjusted gross income
increased substantially to $220,713 due to a gain realized on the
disposition of a capital asset. On their 1982 return, they
claimed investment tax credits of $43,042 and carried back
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011