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from New EOCC to the foundation constituted a fraudulent convey-
ance under applicable Oregon law and that therefore the United
States had demonstrated a sufficient nexus between EOCC and that
property to make the levy on that property valid for the purpose
of collecting EOCC's tax liability.
With respect to the United States' contention that the Modoc
levy for petitioners' tax liability was proper, the District
Court explained that if it were to find that the foundation was
either a nominee of petitioners or a sham entity, there would be
a sufficient nexus between petitioners and the Modoc property to
make the Modoc levy valid for the purpose of collecting petition-
ers' tax liability. The District Court found on the record
before it that the foundation was both a nominee of petitioners
and a sham entity and that there was a sufficient nexus between
petitioners and the Modoc property to make the levy on that
property valid for the purpose of collecting petitioners' tax
liability. The District Court stated in pertinent part:
It is clear from the facts, cited in defendant's
memorandum and reply memorandum and contained in the
statement of facts, that * * * [petitioners], espe-
cially [petitioner] Bruce Carpenter, maintained total
control over the * * * [foundation]. It is also clear
from the facts that * * * [petitioners] transferred the
Modoc property from * * * EOCC to New EOCC and from New
EOCC to * * * [the foundation] in anticipation of the
income tax deficiencies. * * * It is also clear from
the facts that the funds used to purchase the Modoc
property are properly attributed to * * * [petitioners]
as set forth in defendant's reply memorandum. * * *
[Petitioners] continue to enjoy possession, control,
and the benefits of * * * [the foundation's] assets,
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