- 18 - weekly cash "advances" to the Guarantee Bank payroll account held by MIT 80, although it was not required to do so by the employee leasing agreement.4 These advances were equal to the actual weekly worker service compensation payments to employees and independent contractors. The advances were reflected on the books of MIT 80 and Machise. During 1980, Machise paid $2,243,495.73 into the MIT 80 payroll account so that MIT 80 could cover the weekly payroll costs for the employees and independent contractors. Hereafter, use of the term “payroll costs” includes amounts paid with respect to, or on behalf of, both employees and independent contractors. Bucci and Ingemi retained control of the MIT 80 ledger, although they were not partners in MIT 80. Either Bucci or Ingemi signed the MIT 80 checks that paid the employees and independent contractors from the weekly advances made by Machise. There was also a pension plan in effect for the rank and file employees. Bucci decided what investments were to be made for the pension plan, and the comptroller of Machise prepared the 4Fred testified that there was an "oral agreement" that Machise would advance to MIT 80 the funds needed to pay Machise's employees and independent contractors for the first 6 months of 1980, until MIT 80 obtained funds from its incoming partner- investors. Thereafter MIT 80 would repay Machise and deposit with Machise the estimated amount needed by MIT 80 to pay the payroll expenses for the second 6 months. As a result, each week, Machise would pay into the MIT 80 account the amount needed to meet the Machise payroll. At the end of the year, Fred explained, "it was all washed out".Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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