ACKERMAN v. SCHWARTZ

No. 91-1794.

947 F.2d 841 (1991)

Jerry ACKERMAN, et al., Plaintiffs-Appellants, v. Howard K. SCHWARTZ and Bassey, Selesko and Couzens P.C., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided November 14, 1991.


Attorney(s) appearing for the Case

Robert W. Mysliwiec, Jones, Obenchain, Ford, Pankow & Lewis, South Bend, Ind., for plaintiffs-appellants.

Paul E. Becher, J. Scott Troeger, Barnes & Thornburg, Elkhart, Ind., William J. Reinke, Ernest J. Szarwark, Barnes & Thornburg, South Bend, Ind., for defendants-appellees.

Before COFFEY, EASTERBROOK, and RIPPLE, Circuit Judges.


EASTERBROOK, Circuit Judge.

In 1983 and 1984 Gary Van Waeyenberghe and Carl Leibowitz promoted a tax shelter: each $10,000 invested would produce an immediate tax credit of $20,000, a deduction of $10,000, and the opportunity to reap profits from an ethanol manufacturing business. Like most opportunities too good to be true, this was too good to be true — although that did not stop more than 100 persons from taking the bait. The IRS

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