- 5 - distressed companies and turn them into profitable businesses. Petitioner believed that he could make the companies successful because of his past business success. In August 1986, petitioner formed Bell Equities, Inc. (BEI), a holding company, for this purpose. From 1986 to 1988, petitioner was the sole shareholder. During this period, he made capital contributions to the company of over $424,963. Petitioner made all decisions regarding which businesses BEI would acquire. During 1986 through 1987, BEI acquired a number of subsidiaries that were insolvent or operating at a loss. Petitioner was unable to turn any of the subsidiaries into profitable businesses. BEI had also acquired one subsidiary, Kaufman Lumber Co., that was profitable at the time of acquisition. None of the subsidiaries were sold or even offered or advertised for sale. BEI's subsidiaries engaged in a variety of business activities, including manufacturing, lumber, radio and television broadcasting, advertising, and theme parks. BEI acquired majority interests in the following entities: Subsidiary Date of Acquisition Percentage Ownership Kaufman Lumber Co. 12/86 50 3/89 50 Monarch Mill and Lumber Co. 8/86 90 * 10 Reelcraft, Inc. 12/86 80 Ainsley Communications, Inc. 4/87 100 The Entertainment and Leisure Corp. 12/86 90 Shotts-Vines, Inc. 6/87 80 PPD&G, Inc. 5/87 100 * Date of acquisition is not available in record. The Entertainment and Leisure Corp. (TELCOR), a 90-percent subsidiary of BEI, was also a holding company. TELCOR whollyPage: 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