- 32 -
The breakdown of the funds withdrawn is as
follows:
Year Funds Withdrawn
1963 $107,000.00
1964 236,400.00
1965 3,250.00
1966 462,941.00
1968 41,428.91
1969 125,000.00
It is clear that the cost for goods allegedly
purchased from Polymer Chemicals was knowingly
overstated by Resyn on its books and it resulted in a
fraudulent understatement of corporate income tax due
on the Resyn corporate income tax returns for the years
1963, 1964, 1967, 1968 and 1969.
As to the above recited transactions involving
Chemical Traders, the Rambach companies, Witco Chemical
Company and Atlas Paint Company, it is clear that the
diversion to Chemical Traders of monies due Resyn
resulted in a fraudulent overstatement of cost of goods
sold regarding the Witco transactions and a fraudulent
understatement of income in the Rambach transactions.
The Court finds that as a result of the alleged
dealings involving Polymer Chemicals and Chemical
Traders, the Resyn corporate income tax due on its
return for the years 1963, 1964, 1965, 1966 and 1967
was underpaid and at least part of the underpayment for
each year was due to fraud.
* * * * * * *
In considering all of the evidence before it, the
Court is satisfied that both Chemical Traders and
Polymer Chemicals are fictional entities used by Resyn
for the fraudulent purpose of evading taxes and with
the express purpose of diverting large sums of money to
Leo Levitt, the sole shareholder of Resyn. Levitt
controlled the withdrawals from the bank accounts of
both Chemical Traders and Polymer Chemicals. While
Harry Levinson signed many checks on the Polymer
Chemicals' bank account, he signed them in blank, at
Levitt's request and never knew what was done with the
proceeds of the checks.
Page: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 NextLast modified: May 25, 2011