Jerry L. Crabtree - Page 38

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             net worth of the individual petitioners, such as through                 
             the purchase of other assets.  On the basis of the fact                  
             that we have insufficient evidence by which to evaluate                  
             respondent’s assertion and the fact that there is evidence               
             in the record that tends to support petitioners’ assertion,              
             we cannot accept respondent’s position that petitioners’                 
             explanation of the lack of cash deposits is “patently                    
                  Respondent next asserts that petitioners’ decision to               
             rebuild the business after the fire supports respondent’s                
             determination of fraud.  Respondent argues that petitioners              
             would not have rebuilt an uninsured building if the                      
             business had been unprofitable.  Petitioners maintain that               
             the business was losing money.  Mr. Eddie Crabtree                       
             testified that petitioners did not recover from the                      
             insurance company because the insurance company filed for                
             bankruptcy during the same week that Justins burned.                     
             Mr. Eddie Crabtree further testified that he consulted a                 
             commercial real estate agent who recommended that it would               
             be easier to sell the property with a structure on it than               
             as bare land.  We accept petitioners’ explanation for their              
             decision to rebuild after the fire.  We do not agree with                
             respondent that it is an indication of fraud.                            

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