Richard L. and Kelly D. Robson - Page 5




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          Sack approached petitioners about the purchase of the office                
          condominium through at least some time after the audit of their             
          1993 return, petitioner did not understand the nature of or                 
          rationale for the financial arrangements made regarding that                
          purchase.                                                                   
               Mid-Nebraska also periodically borrowed money from York for            
          operating expenses.  In August 1992, petitioner asked York to               
          cover a $19,000 overdraft to USF&G Insurance Co.  York refused.             
          Instead, Sack informed petitioner that York would take over Mid-            
          Nebraska’s business, but York would allow petitioner to operate             
          the insurance business as an employee of the bank.  During the              
          preliminary discussion of the terms of York’s acquisition of Mid-           
          Nebraska’s business, Roger Sack, Sack’s son, told petitioner that           
          York would fire petitioner if he attempted to retain an attorney            
          to advise him about the transaction.  Sack determined all of the            
          terms of the acquisition, and petitioner had no voice in the                
          matter.                                                                     
               On August 17, 1992, Sack, on behalf of York, and petitioner            
          signed a letter of intent.  The letter of intent stated, among              
          other things, that “It is hereby acknowledged that Mid-Nebraska             
          Insurors is deficient in working capital and proposes to sell               
          their corporation, including all assets, to the York State Bank             










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