Hubert Enterprises, Inc. and Subsidiaries, et al. - Page 39

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          transferred funds and minuscule in comparison to the cost of the            
          Seasons of Sarasota project.  As to that project, ALD agreed to             
          pay $3 million for land and had agreed to pay construction-                 
          related costs potentially totaling millions of dollars more.  For           
          its own equity capitalization, ALD had only $100,000 from its               
          limited partner Culpepper.                                                  
               This factor weighs toward a finding that the transfers did             
          not create bona fide debt.                                                  
                    6.  Identity of Interest                                          
               Transfers made in proportion to ownership interests weigh              
          against a finding of bona fide debt.  A sharply disproportionate            
          ratio between an ownership interest and the debt owing to the               
          transferor by the transferee generally weighs toward a finding of           
          debt.  See Bayer Corp. v. Mascotech, Inc. (In re Autostyle                  
          Plastics, Inc.), 269 F.3d at 751; Stinnett’s Pontiac Serv., Inc.            
          v. Commissioner, 730 F.2d at 630; Estate of Mixon v. United                 
          States, 464 F.2d at 409.                                                    
               HEI was not an owner of ALSL.  HFT’s controlling settlors              
          and trustees were.  In fact, the only portion of ALSL not owned             
          by those individuals was the 5-percent interest owned by                    
          Ollinger, an HEI vice president, who never made any contribution            
          of capital to ALSL in return for his interest.  The individuals             
          who controlled HEI effectively caused HEI to fund their                     
          investment in ALSL.                                                         






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