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Secondly, in making his investment in Utah I, petitioner
purportedly relied on the advice of his certified public
accountant, Mr. Salgo, and Dr. Stephan, who was selling interests
in the partnership and receiving commissions for each sale. Mr.
Salgo testified that Dr. Stephan was the first person to present
him with a copy of the offering and that was for the purpose of
Mr. Salgo's own potential investment in Utah I. Mr. Salgo could
not specifically remember whether petitioner actually forwarded a
copy of the offering to him for review, nor could Mr. Salgo
remember actually discussing the partnership with petitioner or
rendering any sort of advice with respect to petitioner's
potential investment therein.8 Mr. Salgo did not provide a
written opinion to petitioner in connection with Utah I, nor did
Mr. Salgo conduct any independent research or consult any type of
agricultural or jojoba plant expert about the investment. The
record in this case indicates that, if indeed Mr. Salgo rendered
any advice at all to petitioner about Utah I, Mr. Salgo relied
solely on the representations made in the offering in giving such
advice.
Moreover, the record lacks evidence to show whether Mr.
Salgo had any previous experience with the deductibility of
8 Notably, petitioner was also unable to recall whether
he delivered a copy of the offering to Mr. Salgo, or whether Mr.
Salgo specifically rendered any advice to him with respect to his
potential investment in Utah I.
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