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The funds to make the $195,000 payment on October 30, 1995,
were obtained through two deposit transactions. Proceeds in the
amount of $135,000 from the liquidation of a money market account
with M.L. Stern & Co. and in the amount of $60,000 from a
reduction in principal on the Marsh note were placed into the
bank account on October 30, 1995. Michael negotiated the $60,000
payment on the Marsh note in return for agreeing to extend the
maturity date of the remaining principal balance.
Prior to establishment of the partnership account, amounts
received with respect to securities contributed to HFLP were
deposited in the Morton B. Harper Trust checking account.
In January of 1995, decedent entered hospice care in Oregon.
Preceding that time, he had been hospitalized on three occasions,
in late September, early October, and late November. He had also
renewed his vehicle registration on September 23, 1994, and his
driver’s license was current at the time of his death. Decedent
passed away on February 1, 1995.
Thereafter, in March or April of 1995, Michael engaged a
certified public accountant, David S. Blankstein, to prepare
financial books and tax returns for the partnership and also to
prepare the income, gift, and estate tax returns due with respect
to decedent. In furtherance of these objectives, Mr. Blankstein
reviewed the partnership Agreement; the certificate of limited
partnership; the Amendment; checking account records for the
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