- 19 -
involved in a plastics company. Kaliban did not read the Poly
Reclamation offering memorandum or otherwise investigate or
analyze any aspect of the transactions. He assumed that if Alter
was investing in the Plastics Recycling transactions, it was a
good investment.
2. Steve and Lispet Roland
Petitioners Steve and Lispet Roland resided in New York, New
York, when their petition was filed. After graduating from high
school, Steve Roland (Roland) pursued dramatic training for 2
years and then served in the Army. Upon completing his military
service, Roland performed on Broadway, in night clubs, and on
radio. His career eventually shifted to the commercial field
where he engaged in on camera performances and then concentrated
in voice-over work. Roland's workload and earnings grew quickly,
and in 1968 he retained Alter's firm to manage his finances and
plan for taxes. Alter and Feinstein received Roland's income and
paid his bills, such as his agent's commissions, maintained books
tracking Roland's investments and residuals, and prepared the
Rolands' tax returns. They also reviewed investments that had
been suggested to Roland by others. Roland incorporated his
professional services under the name Steve Roland, Inc. (SRI) in
1968. SRI, whose only asset was its arrangement for the services
of Roland, filed a separate return from him. Prior to 1981,
Roland invested in a profitable commercial real estate venture in
which Alter also invested. On their joint 1981 Federal Income
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011