Research Paper on:
Investment Fraud and Income Tax Treatment

Unformatted Sample Text from the Research Paper:
venture that purchases poorly managed restaurants, making them once again profitable and re-selling them for a profit. As the evening progressed, Dan proceeded to tell Kay of a current  project he was working on-a restaurant that would turn out to be a "gold-mine" in his words, but he did not have the financial backing to actually close the deal.  Based on what she had learned that evening, Kay offered to loan Dan thirty thousand dollars for the venture. An agreement was written up whereby Dan agreed to  pay Kay the entire amount over a five-year period at fourteen- percent interest. Several months later Kay made the startling discovery that Dan had never purchased the intended restaurant and  had used her money for his own benefit. She sued Dan in court alleging that he had fraudulently and deceitfully represented what the money would be used for, ultimately  defrauding her for her money. Unfortunately, Kay was never able to recover any of the money she had loaned to Dan. The question now is whether Kay can  claim this loss on her income tax return. It is clearly shown here that Dan intentionally defrauded Kay of the thirty thousand dollars, having never purchased the restaurant for which  the money was intended and in fact never intending to do so in the first place. Because they had a written agreement as to the terms of repayment for  the full amount, this constitutes breach of contract on Dans part. This is hardly a unique case. Every day we see people defrauded of their money, with no  recourse but to file a lawsuit. This does not always see justice done, but it needs to take place in order to prove that there was indeed an act