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meetings. As an example of the latter, minutes of the HGAMC
board meeting held on June 27, 1997, read as follows:
The Executive Director, Homer L. Richardson as
instructed by the Board of Directors made available to
the Board of Directors research from the Aegis Company,
Court Cases and legal opinions regarding IRS Notice 97-
24.
Mr. Richardson provided a report from the Aegis Company
that addressed each paragraph of IRS Notice 97-24 in
which it was pointed out that Notice 97-24 was
concerned with I.R.C. Sec 671-679 as it pertains to
grantor trusts and that when a person attempts to apply
business trust procedures of tax reduction to an
“ordinary trust” the trust is labeled by the IRS as an
“abusive trust”. The report concluded that 97-24 is
not addressing legitimate business trusts.
Mr. Richardson also provided a copy of American
Jurisprudence Second Edition volume 13 Business Trusts,
Excerpts from Executive’s Business Law Section
regarding Business Trusts, a report from George M.
Turner, M.S. J.D. regarding the legal foundation of the
Business Trust and taxation of a Business Trust and a
report from the Yale law [sic] Journal titled the trust
as an instrument of Commerce.
The materials supplied, the legal opinions and the
research conducted regarding business trusts do not
support the position that the Aegis business trust is
the kind of trust that is addressed in IRS Notice 97-
24.
In addition to personally implementing an Aegis multitrust
package, Mr. Richardson also became involved in the promotion and
sale of the Aegis system. Beginning in 1996, Mr. Richardson sold
Aegis trust packages through Asset Protection Services, and it
was this business that was managed by HGAMC under the contractual
arrangement detailed above. Generally, HGAMC would retain a
percentage of the sales price of a trust package as a commission
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