William C. and Dorothy M. Smith - Page 7




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          distributor for Renaissance, she engaged Ms. Clark to review her            
          Renaissance business plan as well as other materials provided by            
          Renaissance.  This review was confined to the merits and legality           
          of the tax strategies sold as part of the Renaissance tax                   
          package.  After reviewing the documents Mrs. Smith provided, Ms.            
          Clark advised that the tax strategies promoted by the product               
          were legal.  Ms. Clark also purchased the Tax Relief System for             
          herself and briefly became a distributor for Renaissance.  Ms.              
          Clark testified that she ceased selling for Renaissance because             
          it was taking too much time and because Renaissance was shut down           
          by Kansas State authorities.                                                
               Ms. Clark did not provide any business advice to Mrs. Smith            
          apart from her tax advice.  Aside from the vague business plan              
          provided to Ms. Clark with respect to Renaissance, Ms. Clark did            
          not review any of Mrs. Smith’s other business plans.  Further,              
          Ms. Clark did not prepare or review any financial statements or             
          budgets with respect to any of Mrs. Smith’s marketing activities.           
          As Ms. Clark testified, her advice was largely confined to tax              
          advice.                                                                     
               Mrs. Smith also sought advice from her upline distributor,             
          Ms. Walsh.  Ms. Walsh’s counsel focused primarily on sales and              
          product training.  Ms. Walsh did not review any financial                   
          statements with Mrs. Smith, nor did she discuss how Mrs. Smith              
          might stem the losses she was experiencing or how long it might             







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