Larry M. Levy and Diane Levy - Page 4




                                        - 4 -                                         
          the agreement, JTFJ reimbursed $15,442 of expenses Larry Levy               
          incurred on behalf of JTFJ.  The agreement characterized all of             
          Larry Levy’s advances as loans.  Petitioners’ advances were all             
          made directly to JTFJ.                                                      
               By May 1987, JTFJ was unable to pay its bills as they became           
          due.  Between May 1987 and April 1988, Larry Levy advanced an               
          additional $187,096.  On May 1, 1988, the note was not paid as              
          required by its terms.                                                      
          III. Advances and Bankruptcy                                                
               On May 5, 1988, JTFJ filed for protection under chapter 11             
          of the Bankruptcy Code.  The bankruptcy court’s file was                    
          subsequently lost.  After the bankruptcy filing Larry Levy                  
          continued to advance funds to JTFJ (i.e., an additional $92,076             
          between May 1988 and March 1990).  By March 31, 1990, Larry Levy            
          had advanced $599,077 to JTFJ (i.e., $48,250 prior to March 31,             
          1985, and $130,000, $141,655, $174,696, $80,754, and $23,722 in             
          JTFJ’s taxable years ending March 31, 1986 through March 31,                
          1990, respectively).  Of these advances, $125,000 of the $599,077           
          was memorialized by a written note.                                         
               Pursuant to the agreement, Larry Levy guaranteed a number of           
          JTFJ’s debts.  From 1988 through 1993, petitioners paid $199,426            
          on the personal guaranties made to JTFJ’s creditors (i.e., $1,000           
          in 1988, $37,095 in 1989, $53,806 in 1990, $93,725 in 1992, and             
          $13,800 in 1993).                                                           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011