WINTER, Circuit Judge:
This case involves a taxpayer's claim that certain investment losses are deductible as theft losses under the Internal Revenue Code of 1954, 26 U.S.C. § 165(a) (1982) (now Internal Revenue Code of 1986) (collectively "Tax Code"), because the investment company making the investments on the taxpayer's behalf engaged in highly speculative securities trades and made several material misrepresentations to the taxpayer about the value of its...
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