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Harlan met after attending a free seminar advertised in the
newspaper.3
Floors Trust
At the time Floors Trust was created, Edwards Vinyl changed
its name to Floors by Harlan, and all assets associated with the
business were transferred to Floors Trust. There was no change
in the manner in which Harlan conducted the activities of the
flooring business after the name change and asset transfer.
Harlan was appointed “manager” of the trust’s business and had
unrestricted access to the trust’s assets. As manager, Harlan
continued to make the same day-to-day managerial decisions for
Floors Trust as he had made for Edwards Vinyl when he managed it
as a sole proprietorship. No trustee imposed any requirements or
made any demands with respect to the manner in which the flooring
business was operated. Harlan and Jody performed the floor
installation activities for Floors Trust, and payment for the
services rendered by Harlan, as proprietor of a floor
installation business, was provided to the trust. Harlan and
Jody maintained a checking account in the name of “Floors by
Harlan ‘A Trust’”, into which they deposited gross receipts from
the floor installation business and over which they had signatory
3 Mr. Fletcher was subsequently convicted of one count of
conspiracy to defraud the United States and two counts of aiding
and assisting in the preparation of false income tax returns, see
United States v. Fletcher, 322 F.3d 508 (8th Cir. 2003), and was
incarcerated at the time of trial.
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