Leo N. Levitt and Ruth G. Levitt - Page 14

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               There was no Chemical Traders office or plant at 128 Clinton           
          Avenue, Newark, New Jersey, when respondent's agents investigated           
          this case in 1971 and 1972.  Respondent's agents did not find any           
          reference to Chemical Traders in a directory of chemical                    
          suppliers.                                                                  
               Petitioner required Resyn's buyers to deliver their payments           
          to Chemical Traders to his home.  The checks from one buyer                 
          totaled as follows:                                                         
               Year   Amount of Checks        Year    Amount of Checks                
               1963     $24,276.40            1967       $38,254.00                   
               1964      59,042.36            1968           - 0 -                    
               1965      18,015.00            1969         2,766.35                   
               1966     199,037.00            1970        15,600.00                   
          Petitioner either cashed these checks or deposited them in the              
          Chemical Traders bank account.                                              
               Chemical Traders did not file income tax returns for the               
          years 1963 to 1970.                                                         
               2.   Amounts Petitioner Diverted From Resyn to Chemical                
                    Traders                                                           
               Petitioner diverted the following amounts from Resyn to the            
          Chemical Traders' checking account:                                         
                                                       Monthly                        
                                                      Statements                     
                    Year      Amount of Deposits        Available                     
                    1963      $163,497.44                   6                         
                    1964      297,115.19                    11                        
                    1965      248,435.81                    12                        
                    1966      526,815.33                    12                        
                    1967      253,767.62                    12                        
                    1968      66,554.58                     12                        
                    1969           70,878.23                11                        
                    1970         15,600.00                  11                        
          Total    $1,642,664.20                                                      




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