Ralph Tashjian - Page 6

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          own cases before the Court would be bound by the Court’s findings           
          and decision in the Lumenetics case.                                        
               On September 20, 1989, DiRicco pleaded guilty to, and was              
          convicted of, violating section 7206(2) for aiding and assisting            
          in the preparation of false tax returns for two of the limited              
          partners in the Lumenetics partnership.  DiRicco was declared               
          ineligible to practice law in the State of California on March 7,           
          1989, and resigned from the bar on July 7, 1989.  He was also               
          disbarred from the U.S. Supreme Court bar.  DiRicco, as TMP for             
          Lumenetics, continued to represent the partnership, pro se, in              
          the Tax Court litigation.  The case was tried on January 28,                
          1991.  In Lumenetics v. Commissioner, T.C. Memo. 1992-630, the              
          Court found that (1) Lumenetics failed to meet its burden of                
          proving that the partnership was entitled to the deduction for              
          “marketing expenses” and (2) Lumenetics failed to prove that                
          respondent was barred by the statute of limitations from                    
          assessing taxes for 1983 against the Lumenetics partners with               
          respect to partnership items.                                               
               The opinion in Lumenetics v. Commissioner, T.C. Memo. 1992-            
          630 n.4, stated, inter alia:                                                
               When the original agreement was allegedly executed in                  
               October of 1983, Lumenetics was not even organized                     
               under the laws of the State of California.  Lumenetics’                
               private placement memorandum is dated Oct. 1, 1983, and                
               its certificate of limited partnership * * * is dated                  
               Jan. 11, 1984. * * * none of the alleged investors in                  
               Lumenetics actually executed the certificate of limited                
               partnership.  Instead, * * * Steinjann, Lumenetics’                    
               general partner and Mr. DiRicco’s neighbor, executed                   

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