Timothy J. Phelan and Deborah A. Phelan - Page 8

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         parcel of Jackson Creek property prior to the sales from JCLC to             
         Elite and Vision.  As of 1996, however, Triview was experiencing             
         financial difficulty and was in default on general obligation                
         bonds issued in 1987 with a face value of $4.8 million and                   
         accrued interest of approximately $3 million.                                
              Petitioner, his brother, and Oldach, in their personal                  
         capacities and/or through the business entities which they owned,            
         executed three investment and financing transactions that were               
         related to Triview and Jackson Creek.  In addition to JCLC and               
         Vision, petitioner, his brother, and Oldach held ownership                   
         interests in two additional entities which were parties to these             
         transactions.                                                                
              One such entity was Centre Development Co. of Colorado                  
         Springs, LLC (Centre).  It was formed on July 27, 1993, for the              
         purpose of acquiring a shopping center.  At all relevant times,              
         petitioner, petitioner’s brother, and Oldach possessed ownership             
         interests in Centre of 40 percent, 40 percent, and 20 percent,               
         respectively.                                                                
              The second entity was Colorado Structures Corp. (Colorado               
         Structures).  Petitioner and his brother together owned a 49-                
         percent interest in Colorado Structures.  The remaining 51                   
         percent is owned by an employee stock ownership plan (ESOP).                 
         During 1998 petitioner served as the president of                            
         Colorado Structures.  Other officers were Oldach who served as               






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