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liabilities of Barbara Drake and petitioner. During the 1997
bankruptcy proceeding, Barbara Drake and petitioner received
authority to sell three properties which were subject to Federal
tax liens. The sale yielded $161,250.65, and a Federal tax lien
attached to the sale proceeds.
Subsequently, the bankruptcy trustee filed a motion to
dismiss the case for failure to file a repayment plan, and
Barbara Drake and petitioner filed a Motion for Authority to
Disburse Funds. The bankruptcy court granted the motion to
dismiss and issued an order mooting the Motion for Authority to
Disburse Funds. Upon the dismissal of the case on June 30, 1999,
Neal E. Satran (Mr. Satran), the attorney representing Barbara
Drake and petitioner in the 1997 bankruptcy, distributed to
Barbara Drake and petitioner sale proceeds in the amount of
$151,139.74 (the 1997 bankruptcy sale proceeds).2 Petitioner
gratuitously transferred the 1997 bankruptcy sale proceeds to his
sons, Darren Drake and Gregory Drake, who placed the proceeds in
a joint personal brokerage account under their names.3 At no
2This amount represents the $161,250.65 received from the
bankruptcy sale, less attorney’s fees and expenses.
3The parties stipulated as follows: “Petitioner gifted the
proceeds, or $151,139.74, from [the 1997] bankruptcy proceeding
to his sons, Darren Drake and Gregory Drake, Jr.” We note,
however, that the record otherwise suggests that petitioner
gratuitously transferred only $150,000 of the proceeds to his
sons. To the extent that the parties are unable to hereinafter
reconcile this apparent contradiction, based on the
(continued...)
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