Michael L. and Susan Barnard - Page 7




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          $256.15, $705.40, and $1,076.90.  She also purchased a $1,083.04            
          cashier's check payable to a seller of furniture.                           
               In 1988 and 1989, the Charlevoix County State Bank (the                
          Bank) delivered to respondent various "Suspicious Transaction               
          Reports" (STRs) as to petitioners.  These STRs reported the                 
          following transactions made by petitioners:                                 
               Date                     Transaction                                   
               July 1, 1988        $3,647 cash payment on a $330,000 loan             
                                   (the first loan) dated December 15, 1986           
               July 5, 1988        $3,647 cash payment on the first loan              
               July 18, 1988       $9,000 cash purchase of a cashier's                
                                   check payable to American Marine                   
                                   Electronics for unidentified goods                 
                                   or services                                        
               July 22, 1988       $9,000 cash purchase of cashier's                  
                                   check payable to Mr. Barnard                       
               July 25, 1988       $9,000 cash purchase of a cashier's                
                                   check payable to Mr. Barnard                       
               July 26, 1988       $9,000 cash purchase of a cashier's                
                                   check payable to Mr. Barnard                       
               Aug. 11, 1988       $9,000 cash purchase of a cashier's                
                                   check payable to Mr. Barnard                       
               Aug. 24, 1988       $6,565.84 cash purchase of a                       
                                   cashier's check payable to the                     
                                   State of Michigan for the sales tax                
                                   on the Tollycraft                                  
               Oct. 13, 1988       $8,000 cash payment on a second                    
                                   loan                                               
               Jan. 23, 1989       $5,000 cash purchase of a cashier's                
                                   check payable to a contractor in                   
                                   partial payment for services that                  






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