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the L&C Properties. All rental income from the L&C Properties
was ordered to be turned over directly to Cal Fed and court-
ordered sales of the L&C Properties were scheduled for May 24 and
May 29, 1990.
On May 16, 1990, pursuant to decisions made by Boggio,
Kanter, and Weisgal, Tanglewood filed a Chapter 11 bankruptcy
petition in the U.S. Bankruptcy Court for the Southern District
of Florida for the purpose of triggering an automatic stay of the
scheduled foreclosure sales of the L&C Properties. By filing for
bankruptcy, the individuals controlling Tanglewood and L&C
Springs hoped to delay for as long as possible the realization of
ordinary income and capital gain by L&C Springs and its limited
partners that would be triggered upon a foreclosure sale of the
L&C Properties.
In disclosure statements prepared by Boggio and provided by
Tanglewood to the Bankruptcy Court in connection with
Tanglewood's bankruptcy proceedings, Tanglewood represented
itself as the owner of the L&C Properties.
In these bankruptcy proceedings, general reference was made
to a Florida land trust, but in financial statements filed on
behalf of Tanglewood, the $2,250,000 stated debt obligation of
L&C Springs to Tanglewood with regard to the L&C Properties was
not listed as an asset of Tanglewood, nor reflected in any other
way.
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