- 15 -
were conduits through which large amounts of money flowed from
1985 to 1987. The record explains some, but not all, of these
flows.15 Petitioner earned interest, which he did not report as
income, on the deposits in these accounts during each of the 3
years. Petitioner used Barnett joint checking only for personal
purposes throughout the 3-year period.
During this period, petitioner had no other sources of funds
such as "cash hoards", except for an inheritance of $19,641 from
his mother, which was deposited into Barnett money market in
November-December 1985. In 1985, petitioner sold a house and
bought a condominium at Turnberry Isle, a luxury residential
community. Petitioner had a mortgage loan on the condominium
with payments of approximately $2,000 per month. He also owned a
1984 Mercedes automobile.
Profits from Ben's marijuana smuggling funded Fort Apache
while petitioner was its president. Petitioner disbursed funds
to Fort Apache and other of Ben's enterprises from deposits that
others, such as LCP Associates, made in Safra and Barnett money
market.
In December 1985, Len-Ed deposited $85,000 into Safra;
$50,000 of this deposit went to two of the racing entities:
$35,000 to Apache Power Boats and $15,000 to Team Apache. The
remainder of the funds in that account rolled over into 1986. In
15The tables summarize the inflows and outflows for the
three accounts, petitioner's explanations for some of these
transactions, and respondent's concessions on others.
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