- 8 - have any reason to suspect that the expert's advice may not be disinterested. Rybak v. Commissioner, 91 T.C. 524, 565 (1988). Under the standard applied by the Court of Appeals for the Second Circuit in Goldman, it was negligent for petitioner to rely on Mr. Coscia, his accountant, for advice on investments or energy management systems absent evidence that Mr. Coscia held some degree of expertise or specialized knowledge in these areas. Petitioner failed to present any evidence that Mr. Coscia had expertise in investments or knowledge of energy management systems, and nothing in the record indicates that petitioner made any attempt to ascertain the extent to which Mr. Coscia possessed these skills before acting on his advice. In addition, although petitioner was not aware that Mr. Coscia was being compensated by Saxon Energy for bringing in Ridge Energy investors, petitioner did know that Mr. Coscia himself and members of his family had invested in Ridge Energy, which arguably affected Mr. Coscia's ability to give disinterested advice on the investment. Neither did petitioner independently investigate the bona fides of the investment. At the time he made his initial capital contribution, petitioner did not know the nature or function of the equipment being marketed, the value of the equipment, the identity of the lessor, the specifics of any leasing arrangement, or how a profit was to be derived from such arrangement. Petitioner did not request an appraisal of the equipment even though it was the sole income-producing asset of Ridge Energy.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011