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having willfully failed to disclose that he had interests in
foreign bank accounts. Although this conviction does not, in and
of itself, establish a fraudulent intent, we consider the crime
as evidence of fraud, especially when combined with other factors
taken from the record as a whole. Petzoldt v. Commissioner, 92
T.C. 661, 701-702 (1989); McGee v. Commissioner, 61 T.C. 249, 260
(1973), affd. 519 F.2d 1121 (5th Cir. 1975).
C. Conclusion
We find that respondent has clearly and convincingly proven
fraud on the part of petitioner for all of the years in issue,
and we so hold. This conclusion is based on the record as a
whole and reasonable inferences therefrom, taking into account
our determination as to the credibility of petitioner and the
other witnesses presented at trial. Petitioner has failed to
show that any portion of the underpayment was not due to fraud.
Therefore, we sustain respondent's determination that Dr. Kalo is
liable for the fraud additions for 1986 through 1988 and for the
fraud penalty for 1989.
Decision will be entered
under Rule 155.
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