Philip H. and Anna Friedman - Page 6

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            of her daughters.  Petitioner paid her daughters' and mother's                                 
            income tax out of her joint bank account with Philip.  Philip                                  
            paid a total of approximately $15,000 for petitioner's daughter's                              
            wedding expenses.                                                                              
                  Petitioners had a joint bank account from which to pay                                   
            household expenses.  Philip would deposit either cash or checks                                
            into the account for petitioner to use to pay various expenses.                                
            Petitioners also paid a variety of their expenses in cash.                                     
            Philip would give petitioner the cash to pay for groceries, dry                                
            cleaning, domestic help, etc.  The cash Philip gave petitioner                                 
            was in addition to the money he deposited in their joint account.                              
            Philip also had several individual bank accounts.                                              
                  Petitioners' recreation was combined with gambling.  They                                
            went to Las Vegas, Nevada, on their honeymoon and took other                                   
            vacations where gambling was a focal point, such as their annual                               
            trip to Puerto Rico.  Philip would go on day trips to Atlantic                                 
            City, New Jersey, or take weekend trips to Las Vegas, Nevada.                                  
            Petitioner would occasionally accompany Philip on the weekend                                  
            trips, or they would both go with their good friends Adrienne and                              
            Elwood Lerman (Lerman).  Lerman was also petitioners' accountant                               
            and financial adviser.  Some of these gambling trips would be                                  
            "comped"; i.e., the casino would pay for travel, meals, and hotel                              
            room.                                                                                          
                  While on these trips, Philip would spend most of his time                                
            gambling in the casinos.  He usually played at the craps table                                 




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Last modified: May 25, 2011