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involved in the farming of jojoba in or about 1982, so his
experience was limited, and there is nothing to suggest that he
was knowledgeable about research and development of jojoba. See
Kellen v. Commissioner, T.C. Memo. 2002-19; see also Freytag v.
Commissioner, 89 T.C. at 888. Further, we have found that Mr.
Kellen’s “analysis” of San Nicholas was not based on anything
other than the projections set forth in the offering memorandum.
Kellen v. Commissioner, supra; see Tokarski v. Commissioner, 87
T.C. 74, 77 (1986).
The record also establishes that Mr. Kellen was the general
partner and tax matters partner of four other jojoba partnerships,
including Utah Jojoba. See supra “B”. Mr. Kellen was also the
close personal friend and business associate of Mr. Pace, the
president (and a director) of U.S. Agri, which was the R&D
contractor and licensee of San Nicholas and other jojoba
partnerships. Indeed, at one time, Mr. Kellen was also a director
of U.S. Agri. Accordingly, any advice that Mr. Kellen may have
given can be analogized to that of an insider or promoter, which
advice is inherently suspect. E.g., Addington v. Commissioner,
205 F.3d at 59; Pasternak v. Commissioner, 990 F.2d at 903.
In Glassley v. Commissioner, T.C. Memo. 1996-206, we found
that the taxpayers:
acted on their fascination with the idea of
participating in a jojoba farming venture and their
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