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Petitioners were able to receive only one sponsorship from a
Japanese company through the Association, which soon after
disbanded in 1993. Petitioners expected to receive sponsorships
from pharmaceutical companies because of Mr. Schwartz’s
profession; however, Congressional investigations of these
companies deterred any sponsorships. At this point, petitioners
began to focus their efforts on chartering the Diane.
During the years in issue, Mr. Schwartz had triple bypass
heart surgery and was not aboard the Diane as often as in prior
years. Petitioners also experienced financial pressure during
the years in issue because they supported their children’s
graduate educations and were also subjected to malpractice
lawsuits. Further, petitioners had lost $300,000 in savings
because of activities by their pension plan administrator, who
was indicted and went to jail because of his illegal activities
with other pension plans.
During the years in issue, petitioners tried to increase
profitability and to cut the Diane’s costs by dismissing its
full-time paid captain, hiring crew only when needed, racing in
local races to lower the Diane’s transportation costs, moving
equipment containers to a free storage location, leaving the mast
in for the winter, refinancing the Diane, and having the Diane
reappraised to lower insurance rates. They also sold some of the
sails that were not needed and placed more advertisements for
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Last modified: May 25, 2011