- 23 -
G. Third Party Information
Respondent's agents suspected that Resyn had made payments
to fictitious entities. Based on that theory, Cronin, Dorgeval,
and O'Byrne issued 48 administrative summonses from November 3,
1971, to September 26, 1972. They issued administrative
summonses to third parties including banks, businesses that
bought and sold Resyn products, and Goldstein, who prepared
petitioners' tax returns. In the summons, they asked for bank
records, canceled checks, invoices, and other business records
pertaining to Resyn, Chemical Traders, Polymer, and petitioners.
Respondent's agents discovered the Chemical Traders account
between July 1971 and December 1972.
Respondent's agents could not reconstruct all of Resyn's
transactions because most of Resyn's business records for the
years in issue were missing. Respondent's agents had only
Resyn's general ledger and journal for 1969, purchase journals
for 1968 and 1969, and canceled checks for 1967, 1968, and 1969.
H. Meetings With FBI Agents and Strike Force Attorney
Rubenstein was an IRS employee who was the IRS liaison with
other strike force law enforcement agencies. He also reviewed
strike force reports from other agencies for possible Internal
Revenue Code violations. Cronin told the FBI that he suspected
that petitioner and Resyn might have violated bankruptcy laws.
Rubenstein arranged for Cronin to meet with two FBI agents from
the Newark Bankruptcy Fraud Squad. The FBI did not investigate
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011