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Date Amount Payee
11 checks issued on
various dates $109,061 Charlene Edgar
March 18 3,500 Interiors
June 24 2,500 Drew Graham
Sept. 1 4,000 Donald Lewellen
Total: $119,561
d. Payment of Petitioners’ Personal Expenses From the
Business Account
Petitioner sometimes told Edgar to pay petitioners’ personal
expenses from the law office’s business account and to record
them as business expenses. He also sometimes told Edgar to pay
his personal expenses from her personal account at Union Bank.
For example, Edgar wrote checks to American Express to pay
petitioner’s wife’s bills, Best Buy for new appliances for
petitioner’s Big Bear cabin, Interiors for remodeling work done
on petitioner’s cabin, and Big Bear Glass to buy materials for
petitioner’s cabin. Edgar also wrote a check to Union Bank of
California to buy two cashier’s checks, one for $25,000 payable
to the IRS and one for $8,200 payable to the Franchise Tax Board,
to pay petitioner’s personal tax bills. Petitioner repaid Edgar
by checks drawn on the business account and asked her to record
those payments as a reimbursement for office supplies.
Edgar wrote 10 checks from her account in 1998 totaling
$46,898.22 payable to petitioner, and she also wrote the
following checks in 1998 to pay petitioner’s personal expenses or
to obtain cash for him:
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