- 5 -
included theaters, bookstores, peep machines, wholesale novelty
stores, film distributorships, and "showgirl" clubs. As
Mr. Mohney's business dealings evolved over time and he began to
gain greater notoriety, his reputation as a proprietor of adult
entertainment establishments preceded him and affected the future
expansion of his business operations into new communities.
Mr. Mohney decided to purchase property through nominees due to
his concerns that he would encounter legal problems if he
purchased property in his own name. For example, his mother was
the nominee when he purchased a movie theater in Mishawaka,
Indiana (Mishawaka property), on December 1, 1969, for $45,000.
Mr. Mohney paid for the Mishawaka property by giving the seller
$13,500 in cash and agreeing to pay the balance (with interest
at 7 percent) through monthly payments of at least $500.
On October 31, 1970, Mr. Mohney purchased a drive-in theater
located in Clarksville, Indiana (Clarksville property), for
$120,000, signing a $114,500 promissory note (Clarksville note).
From 1970 to the time that he transferred the Clarksville
property to petitioner, Mr. Mohney made payments on the
Clarksville note.
In the early 1970's, Mr. Mohney organized each aspect of his
business as a separate corporation. Mr. Mohney also established
five domestic trusts, of which he and his four children were
beneficiaries. Each of these trusts owned an interest in another
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011