Edward Clasby and C.T. Garrahan Insurance Agency, Inc. - Page 9




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          E.   Petitioner's Activities as FUH President and FUH Plan                  
               Trustee                                                                
               As president of FUH from 1983 to 1988, petitioner presided             
          over meetings of the executive committee at which it approved               
          revisions to the FUH plan.  These meetings included:  (1) July              
          25, 1983, March 11, 1985, and October 28, 1985, at which the                
          committee approved the FUH plan; and (2) July 23, 1984, at which            
          the committee agreed to use $225,000 received from Travelers for            
          the first death under the plan to buy six or seven additional               
          policies.                                                                   
               As FUH president, petitioner signed various FUH plan                   
          documents and documents on behalf of the plan, such as:  (1) The            
          FUH pension trust agreement1 on July 14, 1983; (2) an amendment             
          to the FUH plan effective January 1, 1984; (3) a Form 2848, Power           
          of Attorney and Declaration of Representative, authorizing                  
          Fantasia to represent FUH before the Internal Revenue Service               
          (IRS) for tax matters relating to the FUH plan on May 25, 1984;             
          (4) an amendment to the FUH plan effective January 1, 1985; and             
          (5) a revision of the FUH plan on March 12, 1985.                           
               Petitioner became president of the FUH pension committee in            
          1983.  As a member of the pension committee, he was also a plan             
          trustee.  He resigned from the pension committee in September               
          1983 because the Garrahan Agency was writing insurance policies             
          for the FUH plan.  Petitioner chose Robert Simmler to replace him           


               1 Petitioner also signed the FUH pension trust agreement in            
          his capacity as FUH plan trustee.                                           

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