Estate of Melvin W. Ballantyne, Deceased, Jean S. Ballantyne, Independent Executrix, and Jean S. Ballantyne - Page 9

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          partner cannot be made.  The partnership tax returns for the                
          years 1980 through 1994 reflect that the oil and gas activity was           
          more profitable overall than the farming activity during that               
               After Melvin’s death, a dispute arose concerning BBP.  On              
          April 19, 1995, Jean, individually and in her capacity as                   
          independent executrix of the estate, filed suit against Russell             
          and other parties.  The original and amended petitions sought,              
          among other things, an accounting of the assets and liabilities             
          of BBP in order to establish the value of BBP’s assets and                  
          liabilities and the respective interests of Melvin and Russell as           
          of the date of Melvin’s death.  The dispute was also outlined in            
          the estate’s 1994 Form 1041.  On a Form 4684, Casualties and                
          Thefts, attached to the 1994 Form 1041, the estate reported a               
          casualty/theft loss of $560,900.  In an attachment to the Form              
          4684, the estate alleged that Russell had embezzled cash from BBP           
          bank accounts and transferred it to his own business and personal           
          accounts, resulting in a casualty/theft loss of $560,900.  The              
          estate further alleged:                                                     
               A portion of the amount of cash embezzled from the                     
               partnership in 1994 has been ascertained from the                      
               partnership tax return.  The estate received its 50%                   
               portion of the income distributions for oil properties                 
               in the U.S. and Canada.  The Estate has not received                   
               its 50% of the distribution from the farm operations                   
               because Russell Ballantyne, the general partner has                    
               taken the money.                                                       

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