- 5 -
sole proprietor under the name of Baldwin Commodities (BC). In
1990, petitioner incorporated the proprietorship and became sole
shareholder of BCC, an S corporation.
During the years at issue, petitioner was a very successful
trader in the bond pit at the Chicago Board of Trade.
Petitioner’s success was due, at least in part, to his financial
resources, reputation, and relationships with brokers and other
traders in the bond pit. His financial resources enabled him to
trade with brokers representing institutional clients and other
traders with large volume orders.
In 1987, petitioner earned $19,160,059 from his bond trading
activity. During the years at issue, the amount of time
petitioner spent in the bond pit decreased as a result of his
marital problems and the divorce litigation, as well as health
problems that followed a plane crash in November 1991.
Petitioner’s income from bond trading during the years at issue
was as follows:
Year Income
1988 $7,254,066
1989 4,570,760
1990 5,269,504
1991 4,134,403
1992 3,045,776
During the years at issue, petitioner began to diversify his
business and investment interests and formed several new
companies. For example, in December 1988, petitioner purchased
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011