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price of $3,000,000 constituted a sale in the
ordinary course of business (a transaction that
was bona fide, at arm’s length, and free from any
donative intent) within the meaning of Treas. Reg.
� 25.2512-8.
B. Whether Nikita, E. Lawrence
Helm, CPA (Helm) and Victor Bezman, Esq.
(Bezman) engaged in a conspiracy to defraud
Petitioner in connection with the redemption
of her PCAB stock.
C. Whether the redemption of
Petitioner’s PCAB stock at a stated
redemption price of $3,000,000 constituted a
bad business bargain by Petitioner,
irrespective of whether she was defrauded by
Nikita, Helm and/or Bezman.
2. Whether the fair market value of Petitioner’s
56.7% interest in PCAB as of May 1, 1987, was
$3,000,000 (the stated redemption price), or was
$8,056,000 as determined by Respondent.
Civil Litigation
In 1994, after receiving advice from her daughter, Catherine
Adkins, decedent ceased her association with Robert Hite, her
attorney of many years, and retained new counsel.
Subsequent to retaining new counsel on May 31, 1994,
decedent disinherited her son, Nikita Maggos. Based on advice
from new counsel, on August 23, 1994, decedent commenced suit in
the U.S. District Court for the District of Hawaii against Nikita
Maggos and PCAB (Civil No. 94-00649ACK) (the District Court
litigation). On August 17, 1995, decedent commenced suit in the
Circuit Court of the First Circuit of Hawaii against Helm, Huber,
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