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In the early 1970's, Laney created a sole proprietorship
known as Melvin J. Laney Associates. On March 19, 1981, Laney
incorporated Melvin J. Laney Associates, Inc. These businesses
are hereinafter sometimes referred to as the Laney Proprietorship
and the Laney Corporation, respectively, and as the Laney
Entities, in the aggregate. Laney was the sole owner of each of
the Laney Entities. The Laney Corporation’s only consulting
contract was with Sterling-Winthrop.
Laney did some of his consulting work in his office, which
was located in a building on the same property as his residence.
Laney also traveled to do consulting work. Laney either was
reimbursed for his travel related to his consulting work, or he
included these costs in his fees; however, Laney was often housed
in a corporate suite or motel room when he traveled. In or
around 1980 Laney almost completely stopped doing consulting work
that was not related to the information system prototype for R.K.
The Rodriguez Key Project
Overview
In 1977 Laney began to work on R.K. R.K. involved the
development of a primate breeding and vaccine testing facility.
On June 24, 1978, Laney bought an island, Rodriguez Key
(hereinafter sometimes referred to as the Island), in Monroe
County, Florida; the Island was to be used as a situs for R.K.
Laney bought the Island for a total of $184,442.20 (purchase
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