Ronald B. and Annette C. Talmage - Page 26




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          2001) to convert the original dwelling on the Rivercliff property           
          into a storage facility so that petitioner could continue using             
          it as a dwelling until the new home was completed.                          
               In 2000, NCPL wire transferred to SSI a total of $2,742,794            
          for the development of the Rivercliff property and a total of               
          $38,800 to Kumiko Talmage for petitioner’s spousal and child                
          support obligations.  Petitioner did not report any of the                  
          transferred funds as income on his Form 1040 for 2000 (2000                 
          return).                                                                    
               On December 19, 2000, Mr. Seki purportedly mailed a letter             
          to petitioner’s address stating NCPL had lent the Talmages                  
          $4,856,172 for the development of the Rivercliff property                   
          pursuant to the January 25, 1999, loan agreement.8                          
               On January 15, 2001, Mr. Seki purportedly mailed a letter to           
          Kumiko Talmage, which stated:                                               
               Dear Kumiko-san,                                                       
               I am again writing in follow-up to my notice to you of                 
               the 14th of November 2000.  As of the date of this                     
               letter, I have not yet received any response from you                  
               (either directly or via Ronald) regarding my call for                  
               security on the very sizable loan I have extended to                   
               you and Ronald for your Oregon property.  I thus regard                
               your lack of response as a negative and as your having                 
               the intent to obstruct my lawful right to security on                  
               the said loan.                                                         


               8 The $4,856,171.94 includes only the amounts NCPL wire                
          transferred to SSI and does not include the $249,193 TPPL wire              
          transferred to SSI in 1998 or any amounts petitioner may have               
          paid SSI directly.                                                          






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Last modified: March 27, 2008