- 16 - informed petitioner about Ratliff's note. In January 1989, Nicholson surrendered ownership of his stock in Northwest to petitioner. On January 8, 1989, Nicholson and petitioner amended the repurchase agreement. The amendment provided that petitioner owned 100 percent of Northwest's stock, and that Nicholson would regain the 49-percent interest in Northwest when Northwest repaid petitioner's accounts receivables due from Northwest and repaid the advances made to Northwest during 1988. On January 9, 1989, petitioner agreed to advance Northwest $50,000, and Moore, acting as vice president of Northwest, delivered a 1-year, interest- bearing promissory note to petitioner in that amount. Northwest repaid petitioner $50,000 on February 22, 1989, but no interest was paid for the time the note was outstanding. In April 1989, Tracy Golden (Golden), a partner from the accounting firm of Axley & Rode, who had been working on the Foretravel account since 1983, was performing routine interim audit work on petitioner's financial statements when he became concerned that the receivables from Northwest might affect his ability to express a "clean" opinion on petitioner's financial statements. Golden wanted to observe firsthand the situation at Northwest. He discussed the matter with Weaver, and they decided to inspect Northwest and assess the situation. On May 23, 1989, petitioner settled a note given to Fishfader by Northwest. Petitioner paid Chrysler FirstPage: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
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