Leon L. Zachman and Estate of Ione Zachman - Page 7

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         They each signed various papers, including blank or incomplete               
         pages, at the request of James or Joan Noske.  Foshaug often                 
         neither read nor understood the pieces of paper she signed.  As              
         president of Parnell, Inman took no action other than as directed            
         by James or Joan Noske.3                                                     
              The minutes for the Hillside Farm trustees’ meeting dated               
         September 8, 1983, signed by Foshaug and Inman, indicate that the            
         trustees appointed Daniel Strohmeier as manager of Hillside Farm,            
         with authority to oversee the business operations of the trust               
         and to issue checks to pay general operating expenses.4  If                  
         Strohmeier ever conducted business related to Hillside Farm, it              
         was at the direction and under the control of James or Joan                  

               3 On June 14, 1985, the U.S. District Court for the District           
          of Minnesota entered a final judgment of permanent injunction as            
          to Foshaug, Inman, Armageddon, and Parnell, enjoining them under            
          secs. 7402 and 7408 from organizing or assisting in the                     
          organization of an abusive tax shelter plan or arrangement                  
          involving business trusts.                                                  

               4 Another case involving Noske trusts, Scherping v.                    
          Commissioner, T.C. Memo. 1989-678, includes as a finding of fact            
          that in June 1983 James and Joan Noske took Strohmeier from an              
          alcoholic treatment center, made him a figurehead president of an           
          entity to which the taxpayers had transferred their dairy farm              
          assets, and placed him on the taxpayers’ family farm to live and            
          work for the last half of 1983, doing farm chores at the                    
          taxpayers’ direction.                                                       

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