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3. Finley Kumble's Legal Advice
On September 26, 1980, attorneys from Finley Kumble met with
petitioner and Dr. Young in Washington, D.C. Petitioner and Dr.
Young believed that they had a tax problem with respect to funds
brought from Bermuda into the United States, and they requested
assistance from Finley Kumble on this problem. Petitioner and
Dr. Young informed the attorneys that they (petitioner and
Dr. Young) had drawn approximately $90,000 on CAI's C account for
reasons that included the payment of their personal creditors in
the United States. Petitioner and Dr. Young produced checks
payable to their creditors in the total amount of $75,000 which
had not been transmitted or cashed.15 Petitioner and Dr. Young
later voided all of these untransmitted and uncashed checks at a
subsequent meeting with Finley Kumble on October 2, 1980.
On October 10, 1980, attorneys from Finley Kumble met with
petitioner and Dr. Young to discuss primarily the tax issues
connected with petitioner and Dr. Young's receipt of the funds.
Finley Kumble recommended that petitioner and Dr. Young ignore
the existence of CAI and report the commissions as income.
15 By September 1990, petitioner and Dr. Young had actually
withdrawn almost $400,000 from the C account, in addition to the
$75,000 of uncashed drafts, most of which was attributable to
petitioner.
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