- 44 -
included in the demand for indemnification in the Orange Co.
litigation. Furthermore, Orange Co.'s directors' and officers'
insurance company paid these attorney's fees, and petitioner has
failed to produce any credible evidence that he was not
reimbursed in full or that during the years in issue the prospect
of being reimbursed was insubstantial.7 Therefore, we conclude
that petitioner was not entitled to deduct the SEC or Orange Co.
litigation expenses for 1987 or 1988.
D. Hong Kong Legal Fees, General Business Matters,
and Tax Matters
On brief, petitioner merely conclusively asserts that the
Hong Kong legal fees were related to, and a continuation of, his
"business of promoting" and that he incurred the legal fees for
tax matters and general business matters in connection with a
trade or business.
Petitioner neglected to cite any facts and failed to present
any evidence that would support these assertions. We conclude
that petitioner has failed to meet his burden of proof with
regard to these expenses. See Rule 142(a).
7 Petitioner contends that he was not reimbursed for the
work Laura Byrne, who represented petitioner in part of the
Orange Co. litigation, did for him. On the basis of the record,
however, petitioner has failed to prove that he was not
reimbursed or that he did not have a right to be reimbursed for
these expenses.
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