- 37 -- 37 -
during each of those years.27
With respect to the deposits at issue of K & H's construc-
tion loan proceeds, the record establishes that Mr. Kabeiseman
did not at any time during the years at issue (1) authorize peti-
tioner to deposit such proceeds into petitioners' accounts,
(2) know the amounts of such proceeds that petitioner so depos-
ited, (3) authorize petitioner's practice of retaining a portion
of such proceeds during each of those years and not using such
portion to make payments to, or on behalf of, K & H, or (4) know
the amounts of such proceeds that petitioner retained.
We find petitioners' apparent reliance on the following
testimony of Mr. Kabeiseman, in order to establish that the
deposits at issue of the K & H construction loan proceeds were
authorized, to be misplaced:
Q Mr. Kabeiseman, you were aware of the * * *
deposit of the loan draws to Mr. Harp's personal ac-
count?
A From Kabeiseman & Harp construction loans,
yes, uh-huh.
We are unable to find that the foregoing testimony establishes
that Mr. Kabeiseman authorized petitioner to deposit K & H's
construction loan proceeds into petitioners' accounts during the
27 Although Mr. Kabeiseman was generally responsible for prepar-
ing K & H's checks to pay for corporate expenditures, the record
does not show whether petitioner obtained the funds from the K &
H checking account that he deposited into petitioners' accounts
through actual checks drawn on that account or, if so, whether
Mr. Kabeiseman prepared, or was otherwise aware of, any such K &
H checks that were issued to petitioner.
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