Melvyn L. Bell - Page 9

                                        - 9 -                                         

          TELCOR                                                                      
               Year      Retained Deficit    Shareholder's Equity                     
               1987      ($598,622)               ($137,551)                          
               1988      (1,644,738)         (1,183,667)                              
          Petitioner was aware that repayment of the advances depended on             
          the subsidiaries' becoming profitable.  During 1986 through 1988,           
          BEI made payments on petitioner's behalf; for example, BEI made             
          loan payments on the loans that petitioner originated to provide            
          funding to BEI and TELCOR.  However, BEI and TELCOR did not make            
          regular repayments of the advances.  On their original and                  
          amended 1987 tax return, petitioners reported interest income               
          from BEI in the amount of $338,264.                                         
               During 1986 through 1988, petitioner also held ownership               
          interests in a number of other business enterprises, including,             
          among others:  Muskogee Mall Ltd.; The Gary Cos.; Magnolia Capri            
          Associates Ltd.; Mediaplex, Inc.; Soneric, Inc.; Darbe                      
          Development Co.; Pier West Partnership; Ice House Center;                   
          Univest, Inc.; Belvedere Enterprises, Inc.; Fountainhead Resort             
          Hotel, Inc.; Shrimp, Oyster & Beer Haus, Inc.; Urban Enterprises,           
          Inc.; BRC Oil & Gas; Red Apple Enterprises, Ltd.; East Main                 
          Ventures, Inc.; Creative Culinary Systems, Inc.; Original City              
          Associates, Ltd.; and Architectural Antiques, Inc.  In general,             
          these businesses were organized as partnerships or S                        
          corporations.                                                               
               Petitioner also advanced money to his other businesses.                
          Although petitioner's other business interests were separate from           
          BEI, financing and operation of these businesses were discussed             



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