Norman H. Fawson and Mary Jane B. Fawson - Page 12

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          provides no information about Mr. Jones’ background and                     
          expertise, other than that he helped petitioners prepare their              
          retirement plan.  Although petitioner testified he felt reassured           
          about any tax risks after talking with Mr. Jones and someone from           
          CFS, he did not elaborate on what he was told or why he felt                
               Petitioners were not naive investors and should have                   
          recognized the need for independent professional advice.  See               
          LaVerne v. Commissioner, 94 T.C. 637, 652 (1990), affd. without             
          published opinion 956 F.2d 274 (9th Cir. 1992), affd. in part               
          without published opinion sub nom. Cowles v. Commissioner, 949              
          F.2d 401 (10th Cir. 1991); Glassley v. Commissioner, T.C. Memo.             
          1996-206.  Petitioner apparently recognized the necessity of such           
          advice in connection with the investments of his medical group’s            
          retirement plan.  He and his medical partners hired an attorney             
          to oversee the retirement plan’s investments.  In the case at               
          hand, however, petitioners relied on the assurances of Mr. Jones            
          even though petitioner testified he was not clear about the                 
          “legalese” in the offering and that the offering had put him on             
          notice of tax risks.                                                        
               Furthermore, petitioners should have had reason to question            
          Mr. Jones’ representations.  Petitioner testified that Mr. Jones            
          had indicated that he had met with Mr. Kellen, the partnership’s            
          general partner, and that Mr. Kellen had significant experience             

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