- 8 - Through Corman, petitioner knew other individuals who were investors in Mid Continent. Before investing in the partnership in 1983, petitioner discussed with other investors the nature of "their involvement with Mid Continent". Petitioner "looked into" the activities of the partnership in 1981 and 1982 by reading accounting reports. On the basis of the discussions with other investors and the recommendations of Corman, petitioner considered the purchase of Fields' interest in the partnership to be "reasonable". The Deal With Fields When Fields invested in the Mid Continent partnership in 1981, he agreed to make an initial cash payment of $10,000 and to make subsequent $10,000 cash payments in each of the years 1982 and 1983. Fields also agreed to become liable on a $120,000 "obligation" to Mitchell Petroleum Technology Corp. (Mitchell) that was to become due 13 years later, on January 15, 1994. During petitioner's negotiation with Fields over the purchase of his Mid Continent partnership interest, it was agreed from the beginning that petitioner would pay the last $10,000 cash capital contribution. But the negotiation focused on "What the amount of the investment was that we were to receive in terms of the value of the balance of the due--the amount that was still due" on Fields' obligation to Mitchell. They discussed whether FieldsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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