Padgett Coventry Price - Page 3

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          degree with honors from the University of California Riverside.             
          In December 1983, petitioner received a juris doctor degree from            
          Western State University College of Law.  On June 13, 1984,                 
          petitioner was admitted to the California bar.                              
          Petitioner, Mr. Ludlow, and Ludlow & Price                                  
               From the early 1960s until 1985, Thomas H. Ludlow practiced            
          law as a sole practitioner.  In September 1985, Mr. Ludlow began            
          practicing law with petitioner as “Ludlow & Price” (the law                 
          firm).  During the years in issue the law firm was located in               
          Corona, California, at either 212 or 812 East Grand Boulevard.              
               In January 1986, petitioner and Mr. Ludlow married.  During            
          the years in issue, petitioner and Mr. Ludlow were married and              
          lived together at 1860 Kellogg Avenue, Corona, California.                  
          During the years in issue, petitioner and Mr. Ludlow filed joint            
          Federal income tax returns, and they reported their law firm                
          income, expenses, and profits on a Schedule C.                              
          Mr. Ludlow’s Health                                                         
               Starting in 1982 or 1983, Mr. Ludlow began having heart                
          problems.  In late 1985 or early 1986, Mr. Ludlow had a massive             
          heart attack.  In 1993, Mr. Ludlow died.                                    
          Hiring of Mr. Reiter                                                        
               In 1988, the law firm fired its bookkeeper/office manager              
          for alleged embezzlement.  At this time, petitioner and Mr.                 
          Ludlow consulted with Marvin Reiter, a C.P.A., who had assisted             






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