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were the only authorized signatories on the partnership's
checking account at Central Trust.
On December 1, 1978, Robert Iles, et al., acquired the
assets and business of Computing and Accounting Group, Inc.,
hereinafter sometimes referred to as CAGI.12 Before this
transfer, CAGI offered computer services, computer programming
and design, computer installation, and other related computer
services.
In February 1979, Robert Iles, et al., bought a computer,
peripherals, and software from Monitor Information Systems for
$166,500. This purchase was financed in part by a loan from
Central Trust. Under the financing agreement, Central Trust
acquired a security interest in the computer and in all the
fixtures and equipment located at petitioners' personal residence
and their business offices, in Cincinnati. Petitioners,
McCormick, and McCormick's wife were personally liable on the
loan. McCormick stopped being associated with Robert Iles, et
al., in 1980 or later.
12 The stipulated Dec. 1, 1978, agreement between Robert
Iles, et al., and CAGI states that the only two partners in
Robert Iles, et al., are Robert and Peter J. Reil. Yet, both the
stipulated partnership agreement of Nov. 18, 1978, and the
stipulated partnership 1979 income tax return show Robert and
McCormick as the only two partners in Robert Iles, et al. It
appears that Reil and Robert were supposed to create this
partnership. Reil decided not to participate. McCormick learned
of this development and stepped in.
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