Joseph B. Leonard and Dorothy A. Cole Leonard - Page 4

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          Bank Loans                                                                  
               On July 9, 1982, Mrs. Leonard obtained a 2-month bank loan for         
          $75,000 and provided the proceeds therefrom to Robert in order that         
          he could pay off mechanic’s liens on the flower shop property.              
          Mrs. Leonard did this as a favor to Robert.  However, she expected          
          Robert to be responsible for the repayment of principal and                 
          interest charged her by the bank.                                           
               Robert repaid only a portion of the $75,000 given him by Mrs.          
          Leonard.  One of Robert’s checks to her, dated September 10, 1982,          
          bounced.  Mrs. Leonard was ultimately required to pay off the               
          balance of the $75,000 loan.                                                
               Between February and April of 1983, Mrs. Leonard opened four           
          joint bank accounts with Robert in order that he could "have                
          access" to the money.  Mrs. Leonard placed no restrictions on how           
          Robert could use the bank account funds.  No documentation was              
          prepared to define their relationship.  All bank statements were            
          sent to Mrs. Leonard; the statements revealed a number of                   
          overdrafts that began in February 1983.  In addition to the four            
          joint accounts with Robert, Mrs. Leonard had 12 bank accounts and           
          a number of trust accounts during 1983.  Between February and May           
          1983, she obtained loans at four banks totaling $200,000,                   
          ostensibly for use in her law practice, but in fact, the money was          
          provided to Robert.                                                         
          Unsupervised Investments                                                    
               During 1983, checks totaling more than $1.3 million were               
          written to Prudential Bache--where Robert was a stockbroker--on one         

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