- 3 - the same project, to create a technology that makes computers understand their environment. As creditors were attempting to force AIO into involuntary bankruptcy, petitioner agreed to sell some of his Colorcom partnership interest to third parties and lend the proceeds to CDM. CDM then lent the money to Colorcom and AIO as it was needed to develop the project. The intent of this transaction was to place CDM in a better position against AIO’s other creditors should AIO go into bankruptcy. In 2001, Colorcom sold 159,500 Colorcom partnership interest units (units) to third parties on behalf of petitioner. Petitioner owned these 159,500 units in Colorcom. The purchasers of the units (purchasers) wrote checks made payable to petitioner in exchange for the partnership interests. The purchasers purchased the units with the specific understanding that the funds paid to petitioner would be used for CDM and not for petitioner’s personal expenses. The checks made payable to petitioner were mailed to Colorcom, petitioner endorsed the checks, and then he signed the checks over to CDM. The checks totaled $199,375. Colorcom did not report a profit from this transaction. CDM deposited the checks from the sale of the units into CDM’s bank account and recorded an account payable to petitioner for $199,375. Petitioner is the creditor of this accountPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011