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he traded those securities only for his own account, and he
reported on his personal income tax returns the gains and losses
on his trades. He did not make a market in Treasury securities,
and he did not earn a commission on any of his trades because the
counterparties thereto were not required to pay him a commission.
He did not maintain a place of business for trading his
securities separate from B&C's, and he did not effectuate trades
pursuant to a directive. He did not treat his counterparties as
customers; e.g., he did not send them confirmation, he did not
have them sign customer account agreements, and he did not send
them monthly statements.13 Although he was a part owner of B&C,
the business of which included trading securities to customers,
he did not trade his Treasury securities in the course of that
business. He merely used B&C's resources to assist him in his
independent activity of trading Treasury securities. Although he
asks the Court to consider his trading activity part of B&C's
business activity, we decline to do so. Petitioner and B&C are
separate, and, under the facts herein, we will not disregard
their separateness or otherwise treat them as one. To the extent
that petitioner asks the Court to conclude that he used B&C as
13 Petitioner asks the Court to find that sending written
confirmation was not the practice in the industry, especially in
cases where, like his, all trades were confirmed orally.
Petitioner also asks the Court to find that the industry practice
was not to send monthly statements to, or obtain customer
agreements from, institutional investors. We decline to make
either finding. Neither finding is supported by reliable
evidence in the record.
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