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Jersey's office in 1985. Later, after West Jersey's bookkeeper left,
Mrs. Walker kept West's Jersey's books for a short time.
However, Mr. Walker's efforts to continue conducting West
Jersey's pipe flange manufacturing business were not successful,
because of adverse publicity about West Jersey's and Mr. Walker's
prior involvement in the overbilling and kickback arrangements. West
Jersey experienced a drastic decline in its sales and suffered
financial losses. After he concluded that West Jersey's business could
not be operated profitably, Mr. Walker liquidated its assets and
business in 1985.
In about 1986, at least $40,000 that Mr. Walker obtained from the
liquidation of West Jersey's assets and business was used to
capitalize and establish another corporation, Piping Supplies, Inc.
(PSI). PSI's shares of stock were issued to Mrs. Walker and a son of
theirs who is an engineer or a machinist.
PSI is engaged in a pipe flange manufacturing business similar to
the business that West Jersey previously conducted. As of the time of
trial, PSI had gross annual sales of between $1.3 million to $1.4
million.
Mrs. Walker has served as PSI's president. Although Mr. Walker,
at various times from 1986 through the time of trial, has worked on a
daily basis at PSI, he has not drawn a salary from PSI. He and Mrs.
Walker have lived on the salary Mrs. Walker received from PSI.
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