resources were focused on promoting only one product. We are not persuaded that, even with his health problems, Mr. Kluener did not have control over how APECO's resources were to be used without resorting to deception. We note that Mr. Kluener did not appear concerned that he could not control the $1,500,000 that Fifth Third loaned to APECO at approximately the time of the transfer of the horses into the name of APECO. Furthermore, Mr. Kluener appears generally to have dealt with concerns about control by funding APECO with periodic loans rather than by hiding funds. The complete control exercised by Mr. Kluener over the horses and the accounts containing the sales proceeds also indicates to us that the proceeds of the horse sales were not intended for use by APECO. APECO Equine's affairs were handled at Mr. Kluener's business office by himself and his assistant, and the financial and administrative affairs relating to the horses were conducted in the same manner as they had been when the horses were titled in Mr. Kluener's name. While his assistant was nominally an APECO employee, Mr. Kluener continued to reimburse APECO for the cost of her compensation after the transfer, indicating that all of her services were performed for his, rather than APECO's, benefit. Only Mr. Kluener and his assistant had signature authority with respect to the checking account in APECO Equine's name, and only Mr. Kluener could authorize transactions with respect to the Legg Mason account in its name.Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
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