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petitioner is liable as a transferee, then we must decide the
applicable date on which interest began to accrue.
FINDINGS OF FACT2
JCC was incorporated in 1985 under the laws of the State of
Texas and was in the business of developing real estate. Larry
D. Johnson (petitioner) was the president, registered agent, sole
director, and sole shareholder of JCC and is statutorily deemed
to be an “insider” under Texas law. At the time the petition
herein was filed, petitioner resided in Houston, Texas.
From 1985 to 1992, JCC was involved in more than 20 real
estate projects. The following companies were wholly owned
subsidiaries of JCC: LDJ Construction Co.; LDJ Development Co.;
Parklane Development Corp.; Rialto Development Corp.; The Johnson
Corp.; Forest Homes, Inc.; Hearthstone Development Corp.; The
Johnson Development Corp.; and Larry D. Johnson Interests, Inc.
In 1985, LDJ Development Co. entered into a joint venture
with the Brentwood Co. called the West Mill Joint Venture (West
Mill). West Mill was formed in order to purchase and develop
Towne Lake, a 3,300-acre real estate project in Cherokee County.
In 1986, LDJ Construction Co. purchased Brentwood’s 50-percent
interest in West Mill by means of a note payable to Brentwood in
the amount of $709,560.
2The stipulation of facts, supplemental stipulation of
facts, and the exhibits attached thereto are incorporated herein
by this reference.
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