Edwin A. Helwig - Page 3

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          computer components into the enclosures it painted, occasionally,            
          K&H installed electric wiring or cable into the enclosures.                  
               By the early 1990's, K&H’s contracts were becoming larger,              
          but the industry was also becoming more competitive, and the type            
          of computer enclosure was changing to molded materials that did              
          not require painting, thus reducing the need for K&H’s services.             
          As of 1990, K&H operated in a 65,000-square-foot facility, with              
          150 employees, and petitioner, as president, earned an annual                
          salary ranging from $276,040 to $1,318,813 during the years 1990             
          through 1993.  Due to the changes in the industry, K&H sought                
          labor-intensive work and advertised that it did material                     
          handling, scheduling, and quality control for different                      
          materials, including sheet metal fabrication and plastic forming             
          and injection molding.                                                       
               Other ways in which K&H was able to secure a larger portion             
          of the market were to perform complete or “turn-key” projects and            
          to assist its customers financially by purchasing the parts and              
          providing financial float for customers while petitioner was                 
          performing its services.  On occasion, K&H advanced cash and                 
          acted as a guarantor for third parties.  In some of those                    
          instances, petitioner had an equity interest in the borrowing                
          entity.  K&H also “invested” time and expended capital in a                  
          project with a company known as PolyTracker, which was attempting            
          to develop a locking shopping cart wheel.  If successful, K&H                

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Last modified: May 25, 2011