Robert D. and Patricia K. Kaliban, et al. - Page 24

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                  Zimmer met Alter through the Screen Actors Guild.  He was                           
            impressed with Alter's work and retained his firm in                                      
            approximately 1970 to manage his finances.  Alter's firm                                  
            deposited Zimmer's receipts into various accounts and oversaw the                         
            payment of his bills.  Feinstein prepared the Zimmers' tax                                
            returns and on occasion reviewed tax shelters and other                                   
            investments that had been suggested to Zimmer by others.11                                
            Zimmer met with Feinstein on a weekly basis and met with Alter                            
            several times each year.  Alter rarely recommended investments to                         
            Zimmer.  Zimmer recalled making just one investment involving                             
            Alter prior to 1981.  They both invested in a profitable                                  
            commercial real estate venture.  On their joint 1981 Federal                              
            Income tax return, the Zimmers reported gross income from wages,                          
            interest, dividends, State and local tax refunds, and capital                             
            gains in excess of $139,500.                                                              
                  Zimmer acquired a 1.547-percent interest in Poly Reclamation                        
            for $12,500 in 1981.  As a result of his investment in Poly                               
            Reclamation, on their 1981 Federal income tax return the Zimmers                          
            claimed an operating loss in the amount of $9,976 and an                                  
            investment tax and business energy credit in the amount of                                
            $21,584.  The Zimmers also claimed an operating loss from Poly                            


            11    Zimmer recalled:  "I used to belong to a men's club at the                          
            Vanderbilt YMCA and there was a chap there that used to sell tax                          
            shelters, investments.  He was always telling me I was a damn                             
            fool, why don't you buy something, why don't you take advantage                           
            of these things."                                                                         




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