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into the Corestates account, we find that Mr. Kong maintained
control over these funds.
We also find that Mr. Kong received the benefit from other
checks that may not have been deposited into the First Fidelity
account or the Corestates account.18 These checks were issued by
the customers of Sam Kong Fashions, and Mr. Kong endorsed all
these checks. Some of these checks include Mr. Kong’s Mellon
Bank account number below his signature or a stamp bearing the
name Mellon Bank, while other checks include an unidentified
account number. We are unable to identify the bank that
processed two additional checks that Mr. Kong endorsed. We note
again that Mr. Kong failed to testify and explain the
circumstances surrounding the receipt of these checks.
Mr. Kong also argues that he did not receive the benefit of
the $50,000 that Sam Kong Fashions paid to redeem Mr. Wen’s 50
shares of its stock. Mr. Kong alleges that this $50,000 was paid
from the Corestates Bank account. Petitioners offered no records
from Corestates Bank. Petitioners failed to show that Sam Kong
Fashions redeemed Mr. Wen’s shares of stock using the unreported
receipts deposited into the Corestates Bank account. Mr. Wen’s
testimony regarding the redemption was vague. Mr. Wen testified
18 Even though some of these checks include the Mellon Bank
account number on the back of the check, the parties did not
stipulate or argue that these checks were deposited into that
account.
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