Variety Club Tent No. 6 Charities, Inc. - Page 34

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          the voting members” that all three of the listed conditions have            
          been satisfied.  Art. Ninth (B).                                            
               Petitioner’s amended trial memorandum, filed at the trial,             
          states that Plants will testify as follows:                                 
               that the $3,000 paid to Elio Zerbini, Esq. represented                 
               payment for legal services rendered to Petitioner and its              
               Treasurer, Ernie Zeve, in conjunction with the criminal                
               proceedings; that Petitioner was authorized to pay for said            
               legal services rendered to Ernie Zeve * * *.                           
               This same memorandum states as follows in the summary of               
          facts portion:                                                              
                    Although Respondent has not specifically stated that it           
               believes that the payment of legal fees to Elio Zerbini,               
               Esq. constituted prohibited private inurement, Respondent              
               has also questioned the payment of $3,000.00 to Elio Zerbini           
               by check no. 717, dated August 13, 1986, in discovery in               
               this action.  As that payment represents payment for legal             
               services rendered to Petitioner and to Petitioner’s                    
               Treasurer, Ernie Zeve, in conjunction with the criminal                
               charges against Petitioner described above, that payment               
               also constituted an ordinary, necessary and reasonable                 
               expense of Petitioner made in furtherance of its purposes.             
               Finally, this same memorandum states as follows in the                 
          expected witnesses portion:                                                 
                    3. Elio Zerbini, Esq., who will testify that he is an             
               attorney at law who represented Petitioner in the Lorain               
               County Court of Common Pleas upon the criminal charge of               
               failing to use all of the receipts of Petitioner’s bingo               
               games for charitable purposes or permissible expenses and              
               that the $3,000.00 which Petitioner paid to him represented            
               legal fees for his representation of Petitioner only.                  
               The parties stipulated that Zerbini represented Zeve as well           
          as petitioner in the criminal case.  Plants testified that the              
          $3,000 payment to Zerbini was solely for Zerbini to represent               
          petitioner in the criminal case, and that petitioner did not pay            




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