Leema Enterprises, Inc. - Page 53




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               December 1979    Realized ordinary loss     ($77,440)                  
               December 1979     Unrealized gain              78,205                  
               January 1980   Realized capital gain        78,488                     
               November/December                                                      
               1980           Realized loss            (1,200,273)                    
               December 1980    Unrealized gain             -0-                       
               January 1981   Realized gain               11,115,550                  
               1   Peng Partners indicated the same open-switch-close patterns        
          which are indicative of a lack of economic substance.  Dr.                  
          Richartz's distributive share of Peng Partners' T-bill option losses        
          are thus indistinguishable from his personal losses from T-bill             
          option trading.                                                             
          The pattern persisted in Dr. Richartz' stock forwards trading:              
               December 1981    Realized loss          ($2,626,320)                   
               December 1981    Unrealized gain          2,656,440                    
               January 1982   Realized gain            2,668,910                      
               As a market maker, Dr. Richartz entered into taxable                   
          transactions at various times in the last half of 1982 and 1983.            
          The yearend results were as follows:                                        
               December 1982    Realized loss          ($1,826,589)                   
               December 1982    Unrealized gain        1,857,057                      
               January 1983   Realized gain            668                            
               December 1983    Realized loss          (61,807)                       
               December 1983    Unrealized gain        82,054                         
               January 1984   Realized gain            1,642,552                      
               Ms. Rivera's T-bond and T-bill accounts also reflect the               
          pattern of first-year losses and deferral of gains:                         
          T-bills:                                                                    
               December 1980    Realized loss          ($81,001)                      
               December 1980    Unrealized gain        80,985                         
               January 1981   Realized gain            80,956                         
          T-bonds:                                                                    
               December 1980    Realized loss          (408,527)                      
               December 1980    Unrealized gain        423,538                        
               January 1981   Realized gain            426,959                        


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Last modified: May 25, 2011