Leo N. Levitt and Ruth G. Levitt - Page 32

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                    The breakdown of the funds withdrawn is as                        
                    Year                Funds Withdrawn                               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.                                                

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