- 4 -
Checks from customers with insurance were deposited and
recorded through a computerized accounting system; checks from
noninsurance customers and other payors were simply recorded and
totaled on a legal pad bearing the title “Do Not Touch” and on
bank deposit slips and then cashed, not deposited, by petitioner
Jean C. Haney (Mrs. Haney). During the years in issue,
Mrs. Haney regularly endorsed and cashed checks for Flair
Enterprises, d.b.a. Flair Body Works. Mrs. Haney continued to
cash company checks until approximately late 2001, when
petitioners’ bank no longer permitted her to cash company checks.
In addition to checks from noninsurance customers, many
checks received by Flair Enterprises and cashed by Mrs. Haney in
2000 and 2001 were from COPART Salvage Auto Auctions (COPART),
which is in the business of purchasing wrecked vehicles from body
shops for sale to junk dealers. COPART has been picking up
vehicles from Flair Body Works for more than 20 years.
Many of the checks cashed by Mrs. Haney were received by
Flair Enterprises from Hudiburg Chevrolet. Flair Enterprises
leased pickup trucks from Hudiburg Chevrolet during the years in
issue. The lease payments were deducted as business expenses of
the company. Flair Enterprises also purchased approximately
$300,000 in auto parts annually from Hudiburg Chevrolet in the
years in issue. In appreciation for the volume of business that
Flair Enterprises did with it, Hudiburg Chevrolet reimbursed the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007