Joan Walters, f.k.a. Joan Gherman, and Henry Gherman - Page 61

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               Ms. Walters and Mr. Gherman were divorced during 1989.  Mr.            
          Gherman is in jail, serving a 30-year sentence.  As far as we               
          know, he does not have the financial resources to pay the                   
          deficiencies and additions to tax, nor does he have the means to            
          obtain those resources.  Ms. Walters also lacks the financial               
          resources to pay the deficiencies and additions to tax.  Because            
          of the 1988 bankruptcy, Ms. Walters walked away from her marriage           
          with no personal assets.  She is living in her daughter's                   
          apartment and can scarcely support herself.  Additionally, as a             
          63-year old woman with only a high school education and a low-              
          paying job, there is little likelihood that Ms. Walters will ever           
          be able to amass the funds needed to pay the deficiencies and               
          additions to tax.  Consequently, she would suffer undue hardship            
          should relief be denied.                                                    
               Ms. Walters did not participate in the embezzlement of funds           
          from the accounts of FIP's clients, nor did she assist in the               
          embezzlement, as respondent contends, because she allowed Mr.               
          Gherman to use her name to conduct business.  To accept                     
          respondent's contention that Ms. Walters aided and abetted the              
          embezzlement because she allowed Mr. Gherman to organize and                
          operate FIP under her name, we would have to believe that Mr.               
          Gherman, with Ms. Walters' knowledge and consent, planned to                
          defraud FIP's clients at the time that FIP was organized during             
          1969 and then waited until the end of 1982 to effectuate that               
          plan.  Respondent's position defies common sense and is not                 



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