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Thereafter on October 4, 1967, Spencer-Kellogg
shipped 31,010 pounds of raw linseed oil to Atlas Paint
Company and billed Resyn $4,080.92 for this shipment.
Again, a Chemical Traders' invoice dated, inter alia,
October 4, 1967 bills Atlas Paint Company for 31,010
pounds of raw linseed oil.
In addition to understating income through the use
of the Chemical Traders' trade name, Resyn overstated
the cost of goods sold by the use of the Polymer
Chemicals' trade name.
As noted above, Polymer Chemicals maintained a
bank account at the National State Bank of Elizabeth,
New Jersey where the authorized signatory on the
account was Harry Levinson.
The record fails to disclose that Polymer
Chemicals maintained offices, engaged in any business
venture, had any employees, was incorporated as a
company in New Jersey, paid any New Jersey state
corporate taxes or any federal corporate taxes or filed
any such tax returns.
Irving Becker, employed by Resyn since 1967 as
an expediter of deliveries to Resyn customers and as
credit manager, was familiar with all of Resyn's
suppliers. He testified that he was not familiar with
Polymer Chemicals and knew nothing of the Polymer
Chemicals' account. A world-wide survey of companies
which deal in the chemicals purportedly sold by Polymer
Chemicals to Resyn showed that none of them had any
knowledge of a company called Polymer Chemicals. There
is not a scintilla of evidence in the record indicating
that Polymer Chemicals could or did deliver the large
quantities of chemicals to Resyn for which it received
payment from Resyn. In fact, the bookkeeper for Resyn
testified that when she prepared a bill for payment,
she would ordinarily receive an invoice and shipping
documents but that when she received a Polymer
Chemicals' invoice for payment, it was never
accompanied by shipping documents.
From 1963 through 1970, numerous checks totaling
$603,458.84, were drawn on the Resyn bank account
payable to the order of Polymer Chemicals. The Resyn
checks were signed by Leo Levitt and were deposited in
the Polymer Chemicals' bank account. The breakdown of
the checks deposited is as follows:
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