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he was the used car sales manager. Petitioner was a trusted
employee, and he had a close personal relationship with the
dealership owner, Herbert Caplan (Caplan), in the nature of a
father-and-son relationship. Petitioner and Caplan went to the
race track together and gambled on the horses.
During 1966 and 1967, petitioner sold some of the
dealership's new and used cars, pocketed the proceeds, and did
not repay the dealership for the cars. Petitioner deposited
substantial amounts of these proceeds into his personal bank
account at Bankers Trust Company. Deposits to petitioner's
account during 1966 exceeded $117,000; during 1967, the deposits
amounted to nearly $278,000. Petitioner's wages from the
dealership were $15,886.10 in 1966 and $12,324.95 in 1967.
Records of the dealership reflected the sales of certain new cars
to individual owners, complete with deposits and financing
through Bankers Trust Company; the dates of those sales fell in
1966 and 1967. However, those purchasers proved to be
fictitious. In actuality, petitioner had sold these new cars to
used car dealers.
In 1966, petitioner received $42,050 from the sale of 11 new
cars; he also sold three additional new cars the selling prices
of which are unknown but the invoice prices of which totaled
$13,911. In 1967, petitioner received $89,200 from the sale of
23 new cars. Petitioner made payments to the bank on the loans
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