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From the stipulations and stipulated exhibits we learn that
petitioner held the largest interest in each borrower whenever
that borrower received a loan from the Plan. Petitioner had an
8.93-percent interest in J & J Charlotte. Petitioner’s then-wife
had a 6.70-percent interest. Their combined holdings were 2-1/2
times as great as the next-largest holding. Petitioner had a
26.8-percent interest in Eagle Bluff--three times as great as the
next-largest holding. Petitioner had a 33.165-percent interest
in Jocks and Jills, Inc.--6-1/2 times as great as the next-
largest holding.12 When Eagle Bluff was not able to make its
payments to the Plan, petitioner made some of the payments,
intending (the parties stipulated) that he would receive his
money back when the golf club was sold.
The ERISA ‘74 conference joint statement of managers states:
“this prohibited transaction [use of plan assets for the benefit
of a disqualified person] may occur even though there has not
been a transfer of money or property between the plan and a
party-in-interest [disqualified person].” The statement of
managers goes on to illustrate that use of a plan’s assets to
12 On brief, petitioner states that his “ownership
interest[s] in the entities to which loans were made were roughly
9%, 13% and 24%.” Petitioner is correct as to J & J Charlotte.
However, his statement on brief substantially conflicts with the
parties’ stipulations--and the stipulated exhibits--as to Eagle
Bluff and Jock and Jills, Inc. Our findings are in accord with
the parties’ stipulations. Petitioner does not enlighten us as
to the source of his statement regarding his ownership interests
in Eagle Bluff and Jock and Jills, Inc.
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