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going on at the house, the hoopla, the hype, the
conventions, the costumes, the whole flavor of what
this gentlemen has created with KareMor. And that can
be illustrated by photos which we’ll move to next, but
the photos don’t show the excitement in the air like a
video does.
Initially, Mr. Deihl testified that only recordings from
1996, 1997, and 1998 were used in creating the videotape.
However, after similar assertions with respect to the years
depicted in various photographs were shown on voir dire to be
unreliable, counsel reproffered the videotape on the more general
basis of showing how KareMor operated over “the time frame of ’93
through early ’99.”
On this basis, the Court is not convinced that the videotape
would make any fact of consequence to the resolution of these
cases more probable. The record is already replete with
generalized evidence attesting to how petitioners ran a
successful multilevel marketing enterprise, complete with hype,
pageantry, and prizes, as well as a glamorous residence and
wardrobe to fit the part. The Court, as demonstrated in our
findings of fact, does not doubt that petitioners’ business model
successfully used these strategies to instill enthusiasm in the
distributors.
Nonetheless, facts of consequence to the outcome of this
proceeding are those which would establish that petitioners have
met the substantiation and other requisites for the deduction of
each of the particular expenditures made in 1996, 1997, and 1998.
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