Greg R. Vinikoor and Melissa D. Vinikoor - Page 16

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          threatened margin calls, but even after the value of the stock              
          increased substantially, it was not returned to Drachman.                   
               As previously stated, petitioner testified that the sole               
          reason shares of Price Co. stock were transferred to him in                 
          October and December 1987 was to cover threatened margin calls.             
          The acquisition of these additional shares, petitioner testified,           
          would allow him to meet the margin calls without forcing him to             
          sell shares of Price Co. stock already in his account.                      
          Petitioner's purported goal, therefore, was to save, and not sell           
          off, the Price Co. stock.  Based on petitioners' spending habits,           
          as described above, we are persuaded that petitioners had little            
          concern about maintaining their Price Co. stock, as they                    
          methodically depleted the equity in their account each month with           
          extravagant purchases.                                                      
               After the stock rose, Drachman, the supposed creditor in               
          these transactions, never made any demand on petitioners for                
          repayment, even though the value of the stock had increased                 
          substantially and petitioners were diminishing the stock with               
          spendthrift habits.  Petitioner testified that no demand was                
          made, and no amount repaid, because "[Drachman] would prefer for            
          [petitioners] to put a little bit away for [their] * * * children           
          and their education than pay him back right now."  This would not           
          be the standard posture of a creditor in a bona fide loan.  We              
          believe Drachman did not expect to be repaid.                               





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