James S Sparkman - Page 22

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             B.  Independence of Mercury Solar PTO Trustees                           
             When Mercury Solar PTO was purportedly created in 1994,                  
        someone named J. Clark Atkinson (Atkinson) was named “Fiduciary               
        Owner”.  On the same day, Atkinson appointed Sparkman as “Agent”              
        to  “operate the company to the same extent as if he were the                 
        owner.”  In 1998, Atkinson appointed Porter as “Trustee”                      
        (notwithstanding that Mercury Solar PTO’s formation documents make            
        no provision for any “trustee”, but only for “Fiduciary Owners”)              
        and resigned shortly thereafter as “Fiduciary Owner” (thereby                 
        leaving Mercury Solar PTO with no “Fiduciary Owner”).                         
             On the basis of the evidence in the record, we are not                   
        persuaded that either Atkinson or Porter served any independent               
        role in Mercury Solar PTO as “Fiduciary Owner” or “trustee”.23  The           
        evidence does not show that Atkinson ever did anything, except                
        possibly sign some documents.  We draw an adverse inference from              
        petitioners’ failure to call Atkinson as a witness.  Porter’s                 
        testimony, on the other hand, convinced us that she had no                    
        meaningful role at Mercury Solar PTO but was merely an absentee               


               23 Similarly, there is no indication in the record that the            
          trustees or “Fiduciary Owners” of HEH, apart from Sparkman, had             
          any meaningful role in that purported entity.  On Aug. 10, 1994,            
          when Mercury Solar PTO was purportedly created, the trustees of             
          HEH were Lee Allan Hansen and Porter.   There is no indication in           
          the record of what duties, if any, Lee Allan Hansen performed               
          with respect to HEH other than signing some organizational                  
          documents.  Nor is there any indication that Porter had any                 
          significant duties as purported trustee of HEH.  To the contrary,           
          her testimony evinced no meaningful knowledge of HEH operations.            





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