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the various advisors on whom KQC claims to have relied did not
have complete and accurate information with respect to KQC’s
claimed noncash charitable contribution to TMC. By way of
illustration, when Mr. Matamoros prepared Mr. Matamoros’s Decem-
ber 30, 1999 letter and the bill of sale that petitioners claim
transferred to TMC the “improvements” on KQC’s land, including
the new building that TMC constructed with HHS’s grant funds, he
was not aware of (1) that new building21 and (2) the notice of
Federal interest that was filed on May 15, 1998, with respect to
the improved property on Maple Street with the Sandusky County
recorder’s office.22
By way of further illustration that the various advisors on
which KQC claims to have relied did not have complete and accu-
rate information, representatives of Ernst & Young23 whom KQC
21In his testimony at the trial in these cases, Mr.
Matamoros expressed the view that any new building that TMC
constructed on KQC’s land with HHS’s grant funds about which he
was unaware when he prepared Mr. Matamoros’s December 30, 1999
letter and the bill of sale would be owned by KQC, but only upon
termination of the April 21, 1997 lease pursuant to its terms or
earlier if TMC were to be in default under such lease and were to
be evicted by KQC.
22Mr. Kaplan testified that he did not become aware until
shortly before the trial in these cases that a notice of Federal
interest with respect to the improved property on Maple Street
had been filed with the Sandusky County recorder’s office. Even
if we were to accept Mr. Kaplan’s testimony, such testimony does
not change the fact that neither Mr. Matamoros nor Ernst & Young
representatives were aware of the filing of such notice of
Federal interest.
23Mr. Kaplan on behalf of KQC consulted Ms. Schadle, a tax
(continued...)
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