Estate of Romine C. Hogard, Deceased, James C. Elliott, Personal Representative, and Bill F. Stewart, Personal Representative, and Wanda L. Hogard, et al. - Page 14

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          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                  





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