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PFA since its inception. No trust certificates have ever been
received by any of PFA's named beneficiaries.
Petitioner has never met Mr. Bates or Mr. Smith, nor does she
have any knowledge of Peer Financial Group or First Surety Bank.
Petitioner was not involved in the operation of PFA, although she
executed a number of documents relating to the trust at the
direction of her husband.
In June 1989, petitioner and her husband conveyed title to
both their residence and a cabin (each of which was subject to a
preexisting mortgage) to PFA. PFA did not assume the obligation
under either of the mortgages. After the transfer, petitioner and
her husband continued to reside in the house transferred to PFA;
their son lived in the cabin. Neither petitioner, her husband, nor
their son paid rent to PFA.
On June 21, 1989, PFA (by or through Mr. Muhn and Scott Muhn
acting as PFA trustees) purchased Quick Print Express, a printing
business, for approximately $80,000. Mr. Muhn and Scott Muhn paid
the sellers approximately $30,000 as a downpayment; the $50,000
balance was payable in 120 monthly installments of $660.75 each.
Mr. Muhn and Scott Muhn obtained financing for this acquisition by
listing as their assets the real property transferred to PFA by
petitioner and her husband. (Petitioner believed she was
transferring her interest in her home and cabin to the trust in
order to assist her son in obtaining financing for the printing
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