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attorney capable of reading and understanding the subject
documents should have understood the legal ramifications of the
contents thereof. However, petitioners never consulted an
attorney in connection with this investment, nor did they
carefully scrutinize the offering themselves. Moreover,
petitioners failed to consult an experienced tax accountant
regarding the proper deductibility of research and development
expenses.
Secondly, in making their investment in Jojoba Hawaii
petitioners relied solely on the advice of Mr. Matsuda, who was
their financial adviser, as well as petitioner wife's father and
a promoter for the partnership. Mr. Matsuda did not appear at
trial, and the details in this record surrounding his advice to
petitioners about Jojoba Hawaii are scant. The record is devoid
of any evidence to show that Mr. Matsuda conducted any
independent research or consulted any type of agricultural or
jojoba plant expert about the activity. The record indicates
that Mr. Matsuda relied solely on the representations made in the
offering in rendering his advice to petitioners.
Moreover, the record lacks evidence to show whether Mr.
Matsuda had any previous experience with the deductibility of
7(...continued)
the general partner had no previous experience with Jojoba beans
and was relying on U.S. Agri to develop technology and plant
cultivars.
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Last modified: May 25, 2011