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International Tillex stock.3 No taxes were paid by anyone on
this income.
Mr. Ford initially owned 69,111 shares of International
Tillex stock, which he held in a brokerage account in the name of
Marc Ford. Mr. Ford sold those shares at a profit.
Subsequently, but prior to his marriage, Mr. Ford invested
another $26,000 in shares of International Tillex. Mr. Ford
owned these shares through accounts in the name of Marc Ford and
Ms. Ford (using her maiden name of Doorn).
IV. Petitioners’ Control of the Nominee Brokerage Accounts
Mr. Ford, through his assistant Linda Hazlett, who acted
under his direction and control, set up and controlled Blackbird
Investments and its corporate trading account. Ms. Ford
purchased a house in Montecito, California, in 1986, and funds
from a Blackbird Investments account were pledged as security for
the purchase loan. Approximately $25,000 was also taken from a
Toronado Resources account for a downpayment. At the time of the
purchase, Blackbird Investments had a brokerage account in Canada
which traded in International Tillex stock. On June 12, 1986, an
additional $250,000 was wired into Ms. Ford’s bank account in
3 Blackbird Investments, for example, received more than $2
million (Canadian) from trading in International Tillex stock,
and Toronado Resources received income of approximately $1.2
million (Canadian) from trading in International Tillex.
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