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property; and the Vero Beach property was used around October
1994 as security for a loan to CCC, an affiliate of OIP, which
shows that the various members of petitioners' consolidated group
were not kept separate.
Petitioners claim that OIP transferred the Vero Beach
property to FIIC in order to protect that property from the
creditors of OIP. Petitioners also contend that OIP transferred
the Vero Beach property to FIIC and that FIIC transferred it to
IRF in contemplation of IRF's using that property in a joint
venture with another entity. In that regard, petitioners assert
that "joint venture partners and lending banks required the use
of discrete entities to hold development properties, such as IRF,
for bankruptcy protection and other reasons.” According to
petitioners, "the anticipated joint venture never came to pass",
and consequently IRF transferred the 34.3-acre parcel of the Vero
Beach property to OIP "for a sales price of $950,000, which was
paid by a purchase money note secured by a mortgage."
The only evidence in the record with respect to the alleged
reasons for the purported transfers of the Vero Beach property
from OIP to FIIC and from FIIC to IRF and the purported transfer
of the 34.3-acre parcel of the Vero Beach property from IRF to
OIP is the testimony of Mr. Canty, the president of those various
corporations. As we indicated above, based on our observation of
his demeanor, we have questions about Mr. Canty's credibility.
Moreover, other evidence in the record belies his testimony. By
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