AJF Transportation Consultants, Inc., et al. - Page 4

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                                  FINDINGS OF FACT                                    
          Background of Petitioners                                                   
               Anthony J. Ferrentino (Ferrentino) was the president and               
          sole shareholder of AJF during the years at issue.  Ferrentino              
          resided in Williamsville, New York, at the time the petitions               
          were filed.  Ferrentino married Carol Ferrentino on December 30,            
          1954.  They separated in the fall of 1985, and on April 6, 1989,            
          they entered into a Separation Agreement, Support and Property              
          Settlement (Separation Agreement).                                          
               Under the Separation Agreement, Ferrentino was obligated to            
          pay Carol $376,000 over 8 years.  Specifically, Ferrentino was              
          required to pay Carol Ferrentino $22,000 per year from 1989 to              
          1992, and was thereafter obligated to pay at least $22,000 per              
          year until the remainder of the obligation was satisfied.                   
          Ferrentino has not paid all the amounts reflected in the                    
          Separation Agreement.  At various times between 1989 and 1991,              
          Ferrentino asked Carol to modify their Separation Agreement, or             
          forbear his obligation to pay the required amounts.  Ferrentino             
          told Carol that she would recognize a greater return on her money           
          if she allowed Ferrentino to keep the funds owed invested in AJF.           
          Their divorce became final on May 4, 1990.                                  










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