Stephen P. and Jutta A. Maranto - Page 3

                                        - 3 -                                         

          the Herkeios Group.2  Petitioners paid $2,950 to Freedom                    
          Enterprises for a trust package which they used to convey the               
          business, and they received no consideration from the Herkeios              
          Group in the exchange.                                                      
               The Herkeios Group continued to operate the window-washing             
          business under the name of J.S. Khalsa.  Mr. Maranto served as              
          the general manager, and he performed accounting and bookkeeping            
          services, handled bidding work, and washed windows.  Following              
          the transfer to the trust, the gross receipts from the business             
          were deposited into an account at International Savings Bank in             
          San Diego, California.  Mr. Maranto was a signatory to this                 
          account.                                                                    
               Beginning in March 1991, petitioners executed five unsecured           
          "Universal Notes" in favor of the Herkeios Group.  These notes              
          were in the following amounts and bore the following interest               
          rates:                                                                      

          Interest      Payment                                                       
          Date      Amount         Promisee               Rate          Date          
          3/31/91    $4,000     Herkeios Group           5 percent     3/31/92        
          5/10/91     1,100     Herkeios Group           5 percent     5/10/92        
          5/28/91     3,400     The Herkeios Group -     0 percent     5/28/91        
          Alex Yung, Trustee                                                          
          6/19/91     1,000     Herkeios Group dba       5 percent     12/31/91       
          J.S. Khalsa Co.                                                             
          7/29/91     2,500     J.S. Khalsa Co.          5 percent     7/19/92        
          (The Herkeios Group)                                                        


               2Mr. Maranto started J.S. Khalsa Co. in 1985 and operated it           
          as a proprietorship before the transfer to the Herkeios Group.              




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011