John M. Schaefer - Page 4

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          C.   Petitioner's Bankruptcy                                                
               In 1987, petitioner filed a petition with the Bankruptcy               
          Court for the Southern District of California under chapter 11 of           
          the Bankruptcy Code.  Wilford D. Willis was appointed trustee of            
          petitioner's bankruptcy estate.                                             
               In 1991, the bankruptcy trustee disbursed $1,866,170 on                
          behalf of petitioner's estate.  The trustee paid:  (1) $10,500 to           
          Maria Camacho, a tenant in one of petitioner's buildings whose              
          furniture had been improperly removed; (2) $670 to Lester Linn,             
          Jr., a court reporter whose deposition fees petitioner had                  
          refused to pay; (3) $38,500 to Fremont Indemnity Co. (attorney's            
          fees awarded against petitioner for a malpractice action brought            
          by petitioner against the law firm Holland & Postal); (4) $77,000           
          to the City of Los Angeles for civil fines and interest for                 
          housing code violations; (5) $1,650,000 in punitive damages to              
          Gallego; (7) $44,000 to Peterson for fees to remove liens and               
          clear title on 700 acres of land in San Diego county owned by               
          petitioner; and (8) $45,000 to Tanana for a judgment for                    
          malicious prosecution and abuse of process.2                                






               2  Gallego, Peterson, and Tanana are not otherwise                     
          identified in the record.                                                   






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