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majority of its funds to come from the sale of lottery tickets
and does not plan to solicit public donations, but will accept
any donations offered. There is no evidence in the record that
any such donations were ever offered or received.
When petitioner was organized, Hurd and Gould were both
officers and directors. She was president; he was vice
president, secretary, and treasurer. The third member of the
board of directors was Karen Gould, a relative of James Gould.
In April 1993, petitioner replaced its board of directors.
Of the three new members, two were related to Hurd or Gould. The
board has been altered since then. The current board has two
members unrelated to Hurd or Gould; the third is Kristine Hurd's
sister. In a letter to the IRS, petitioner indicated that it
would further revise its board so that none of the members were
related to the officers of KJ's Place. However, that change has
never been implemented.
In 1993, petitioner paid Hurd and Gould compensation of
$6,000 each for bookkeeping, accounting and managerial services.
Petitioner also paid $6,000 in rent to KJ's Place. The measure
of compensation was determined by Hurd and Gould. On July 1,
1994, changes in Vermont's gambling laws took effect. In
accordance with these changes, petitioner stopped paying rent to
KJ's Place and stopped paying wages to Hurd and Gould.
Currently, there are no business dealings between petitioner's
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Last modified: May 25, 2011