- 4 -
intending to deprive that person of it or appropriate it." Del.
Code Ann. tit. 11, sec. 841 (1995). A person commits theft
through a false promise when:
with the intent prescribed in � 841 of this title, the
person obtains property of another person by means of a
representation, express or implied, that the person * *
* will in the future engage in particular conduct, and
* * * the person does not intend to engage in such
conduct * * * [Del. Code Ann. tit. 11, sec. 844
(1995).]
Petitioners contend that they are entitled to a $469,900
theft loss because their loans to Casey, Treasures, and Electra
were misappropriated by trust fund representatives. While the
trust fund representatives may have committed a theft from Casey,
Treasures, and Electra, the representatives did not commit a
theft from petitioners. See, e.g., Perrotto v. Commissioner,
T.C. Memo. 1977-99; Silverman v. Commissioner, T.C. Memo. 1975-
255, affd. without published opinion 538 F.2d 320 (3d Cir. 1976).
The trust fund was an independent, unrelated entity, and Mr.
Willey did not have any contact or dealings with it. Indeed, Mr.
Willey testified that Casey, Treasures, and Electra were not
acting as agents for the trust fund. Therefore, petitioners are
not entitled to deduct a theft loss attributable to their loans
to Casey, Treasures, and Electra.
Petitioners contend that they are entitled to deduct, in
1993, a $299,900 theft loss attributable to Mr. Willey's purchase
of Treasures stock. Respondent, however, contends that
Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011