J. Randall and Jane B. Groves - Page 16




                                        - 16 -                                         
          he did so with the intent to mislead Delk.  Respondent has not               
          shown that petitioner knew the bases of the shares he sold in                
          1988 and 1989 or that he intentionally gave Delk incorrect                   
          information.                                                                 
               Respondent disputes petitioner’s claim that he told Delk                
          about the errors on petitioner’s 1988 and 1989 organizers.                   
          Despite respondent’s suspicions, respondent offered no credible              
          evidence to the contrary.  Neither party called Delk to testify              
          due to his poor health.                                                      
               Respondent argues that petitioner did not cooperate with                
          respondent's agents because he did not give Sexton all of the                
          documents she requested.  Petitioner provided a substantial                  
          amount of documents to Sexton in response to her requests, and               
          petitioner or Delk attended meetings with Sexton.  Respondent did            
          not show what documents petitioner gave Sexton, and so we cannot             
          evaluate respondent’s contention that petitioner was so                      
          uncooperative as to constitute a badge of fraud.                             
               Respondent contends:  (a) Petitioner’s testimony that                   
          he thought he had a basis of about $4 per share in the OPCS stock            
          he sold in 1988 was not credible, (b) petitioner did not explain             
          why petitioners reported sales of high basis stock on their 1988             
          return when SEC rule 144 barred him from selling stock he had                
          acquired within 2 years, and (c) petitioner knew that his 1988               
          organizer was in error.  Respondent relies on these points in                






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011