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from the Polymer account $107,000 in 1963, $236,400 in 1964,
$3,250 in 1965, $462,941 in 1966, $41,428 in 1968, and $125,000
in 1969. The bankruptcy court found that Chemical Traders checks
totaling $115,000 were written to cash in 1966. The bankruptcy
court traced $84,941 to petitioner's stock brokerage accounts.
The bankruptcy court found Chemical Traders checks totaling
$106,500 written to petitioner's personal accounts in 1967. The
bankruptcy court was required to and did decide whether fraud was
present. It found clear and convincing evidence that petitioner
diverted Resyn funds to himself through the Polymer and Chemical
Traders accounts. Collateral estoppel precludes petitioner from
relitigating that matter. Thus, petitioner may not relitigate
the fact that he controlled the Polymer and Chemical Traders bank
accounts and that Polymer and Chemical Traders were fictional
entities which he created to divert funds to himself from Resyn.
Petitioner may contest the extent to which he diverted funds from
Resyn to himself, beyond that found by the bankruptcy court.
b. Final Prior Judgment
The second element for collateral estoppel is met because
the bankruptcy court's decision is final. c. Identity
of or Privity With Parties
The third element for collateral estoppel is met because
petitioner is in privity with Resyn.
A sole or controlling stockholder can be in privity with his
or her closely held corporation. Marin v. Augedahl, 247 U.S.
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