Thomas N. Carmena - Page 12




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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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