Jerry and Patricia A. Dixon, et al - Page 178




                                       - 252 -                                        

          Mr. Cravens' testimony would not have changed Judge Goffe's                 
          conclusion that the test case petitioners had no business purpose           
          for participating in the Kersting programs.  Judge Goffe relied             
          upon factors common to all test case petitioners in rejecting               
          their testimony that they had entered into the Kersting                     
          transactions with a view towards making a profit on stock                   
          appreciation.  Specifically, Judge Goffe found that the test case           
          petitioners participated in the Kersting programs without regard            
          to whether the purchase price for the stock that they purported             
          to purchase was reasonable and appropriate, and without specific            
          knowledge about the Kersting corporations involved, the                     
          industries in which they operated, or the impact of prevailing              
          economic conditions on their investment decisions.  Under the               
          circumstances, we are convinced that Mr. Cravens' pro se status             
          was not material to Judge Goffe's holding that the test case                
          petitioners had no business purpose for participating in the                
          Kersting transactions.                                                      
               We are also convinced that Mr. Cravens' testimony was not              
          material to Judge Goffe's holding that the test case petitioners            
          lacked a business purpose for participating in the Kersting                 
          programs.  In particular, although Mr. Cravens testified that he            
          participated in the Kersting programs mainly for the tax                    
          benefits, we are convinced, upon the basis of Judge Goffe's                 
          comprehensive analysis of the test case petitioners' lack of                
          business purpose, that Mr. Cravens' testimony on this point was             



Page:  Previous  242  243  244  245  246  247  248  249  250  251  252  253  254  255  256  257  258  259  260  261  Next

Last modified: May 25, 2011