Timothy L. and Jane Williams - Page 5

                                        - 5 -                                          

               On January 5, February 5, and May 30, 1990, petitioner used             
          his personal credit cards to obtain cash advances on WIS’s behalf            
          totaling $19,500.  On August 24, petitioner deposited a personal             
          check in the amount of $15,000 into WIS’s account at Palmetto                
          Federal.  The deposit slip identifies the amount as “Loan”.                  
               At some point in 1991, WIS filed a petition for                         
          reorganization under chapter 11 of the Bankruptcy Code.                      
          Petitioner continued to operate the corporation in bankruptcy                
          while it endeavored to pay its debts.  By the end of the year                
          petitioner had formulated a plan of reorganization (the business             
          reincorporation transaction).  The insurance investigation                   
          business would be continued through a newly formed entity called             
          Southeast Professional Services, Inc. (SPS), and the security                
          services business discontinued.  WIS would transfer assets to SPS            
          to provide the new company’s initial capital and would also lease            
          to SPS its equipment and furniture.  As an inducement to help him            
          manage the business, petitioner would share ownership of SPS with            
          two associates named Lewis and Tate.  Each would hold an equal               
          one-third share of SPS’s newly issued stock, but only petitioner             
          among the three holders would be responsible for an initial                  
          contribution of property, which would be supplied by WIS.3                   

               3 Petitioner’s uncorroborated testimony is the source of                
          most of the evidence in the record concerning the terms of the               
          business reincorporation transaction outlined above.  Under the              
          Bankruptcy Code, in general any transfer of an interest in                   
          property of the bankruptcy estate after the filing of the                    
                                                              (continued...)           



Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011