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Procedure. Petitioner resided in Lompoc, California, when he
petitioned this Court.
FINDINGS OF FACT
Petitioner was involved in the business of selling antiques.
On September 6, 1991, petitioner borrowed $50,000 from his
mother, Myrtle Hillman. Later that month, petitioner lent these
funds to Peter Scholes. Mr. Scholes used these funds to finance
PM For Export and agreed to repay the loan in September 1992. PM
For Export was an Argentinean business that exported European
antique furniture from Buenos Aires to the United States and
Canada. After making the loan, PM For Export hired petitioner to
find purchasers. During the latter part of 1991 and in 1992, PM
For Export failed to generate any business. As a result, Mr.
Scholes could not repay petitioner.
In 1993, the Drug Enforcement Agency (DEA) investigated
petitioner and seized most of his records. Petitioner was
arrested and charged with conspiracy to possess marijuana. In
1994, petitioner pleaded guilty and was sentenced to 5 years in
Federal prison.
Petitioner typically did not prepare his own Federal income
tax returns. In 1993, while in the Federal Correctional
Institution in Lompoc, California, petitioner had his 1991
Federal income tax return prepared by his accountant, Kenneth
Casey. Petitioner could not provide Mr. Casey with some records
relating to 1991 because the DEA refused to release them. Mr.
Casey's entries on the return were based on the available records
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