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of the corporation's total voting stock. IRA's returns reported
that from 1977 through 1982, Solomon Weisgal, trustee of the Bea
Ritch Trusts, owned 50 percent of IRA's voting stock, and Mildred
Schott owned the remaining 50 percent of IRA's voting stock. The
Bea Ritch Trusts owned 1,000 shares of common stock, and Schott
owned 1,000 shares of class A preferred voting stock. IRA's
returns for 1984 through 1989 indicated that no individual,
partnership, corporation, estate, or trust at the end of the year
owned (or was attributed ownership under section 267(c)) 50
percent or more of the corporation's total voting stock.
a. Mildred Schott and Delores Keating
Mildred Schott (Schott) worked as a legal secretary and had
a real estate broker's license. She was introduced to Kanter by
a mutual acquaintance. Before she obtained her broker's license,
she worked as a real estate sales person for Delores Keating
(Keating).
Prior to October 28, 1975, Keating owned 1,000 shares of
common stock of Cedilla Co. On October 28, 1975, Keating's 1,000
shares of common stock were exchanged for 500 shares of the class
B preferred stock, and 1,000 shares of common stock were issued
to the Bea Ritch Trusts. By 1978, Keating's 500 shares of class
B preferred stock were redeemed by the corporation.
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