Timothy J. Coburn - Page 10

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          During 1996, petitioner received stock of CareMatrix and                    
          PhyMatrix valued in the aggregate at $1,675,000; Abraham D.                 
          Gosman served as chief executive officer and chairman of the                
          board of CareMatrix at all relevant times and appears to have               
          simultaneously served as chief executive officer and chairman of            
          the board of PhyMatrix;8 CareMatrix advanced a loan to petitioner           
          for the purpose of covering petitioner’s income tax liability               
          incurred in relation to petitioner’s receipt of the CareMatrix              
          and PhyMatrix stock; and the loan from CareMatrix was secured               
          solely by petitioner’s PhyMatrix stock.  However, despite the               
          evidence of that interrelationship, respondent conceded that the            
          loan constituted bona fide indebtedness and offered no evidence             
          to the contrary.  Respondent chose to submit the instant case               
          fully stipulated without trial rather than placing the issue of             
          the bona fides of the CareMatrix loan before the Court and                  
          questioning the intent of petitioner and CareMatrix at trial.               
          Given respondent’s concession, and absent the raising of the                
          issue of the bona fides of the loan, we will not consider the               
          facts relating to the interrelationship among petitioner,                   
          CareMatrix, and PhyMatrix for the purpose of the instant motion.            



               8Abraham D. Gosman appears to have signed the stock                    
          certificate for the collateral as chairman, president, and chief            
          executive officer of PhyMatrix.  The stock certificate was dated            
          May 19, 1997.  The record contains no further evidence with                 
          respect to the relationship of Abraham D. Gosman and PhyMatrix.             





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