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incurred by W & A. MPC, however, had the election to defer
payment. If MPC made such an election, the unpaid balance of the
compensation fee plus the late charge computed to January 1,
1988, was to be paid in 36 equal monthly installments with 10
percent interest, with the first payment due on January 31, 1988,
and the balance due in installments on the last day of each month
thereafter.
The employee leasing agreement provided that, upon
presentation of the weekly payroll register approved by MPC, BBPA
would release and deposit directly into W & A's payroll bank
account 125 percent of the gross pay. The funds so deposited
originated in Machise and passed through BBPA as the "escrow
agent". Although the actual flow of funds was from Machise to
BBPA to W & A, journal entries recorded the alleged transactions
to include MPC and Bucci. Thus, the journal entries showed the
funds going from Machise to MPC as an advance, then from MPC to
Bucci as a capital distribution, then from Bucci to BBPA as a
loan to BBPA, and then from BBPA to W & A.
The employees and independent contractors were paid with
W & A checks stamped with the signature of Andrew Bryen (Andrew
Bryen physically signed three W & A checks in 1987).
One of the employees paid with W & A checks was Loretta
Wilcox, a secretary with Machise. She had been hired by Bucci in
September 1980, after she had filled out a formal employment
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