- 13 - sham, and petitioner received the stock of 2618 Inc not by purchase, but in payment and in satisfaction of the over $500,000 in legal fees owed to him by 2618 Inc and by Helmle. During 1986 through 1988, in correspondence to various individuals, petitioner made statements regarding the value of the stock of 2618 Inc and of the Club. The following schedule summarizes petitioner's statements: Date Description 09/19/86 Letter to hearing officer for City of Houston in which petitioner stated that the market value of the Club was between $1 million and $1.5 million. 02/11/87 Letter to loan officer for TexGuarantyBk in which petitioner stated that the Club could be sold for $1.5 million. 06/05/87 Letter to district judge for Harris County, Texas, in which petitioner stated that the market value of the Club was between $1 million and $1.5 million. 11/17/87 Letter to Kalantzakis in which petitioner stated that a 50-percent stock interest in 2618 Inc had a value of over $700,000 and that an individual had offered to purchase the Club for $1 million. 02/29/88 Letter to Helmle in which petitioner stated that an offer had been received to purchase a 50-percent stock interest in 2618 Inc for $600,000. Relief as Guarantor of $705,000 Debt Obligation On March 14, 1985, Payne & Potter borrowed $705,000 from Texas Commerce Bank in Houston (TexCommBk) to develop four luxury condominium units on a golf course in Lakeway, Texas. Petitioner was shown on the loan documentation as guarantor of this $705,000 loan. By 1987, apparently because of the declining regional real estate market, Payne & Potter defaulted on its $705,000 debt obligation to TexCommBk. During 1987 and 1988, petitioner madePage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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