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signed at least one check drawn on that account. However, during
those years, Mr. Morris controlled the affairs of Meadows, and
petitioner was not involved in the day-to-day operations of that
corporation and was not in a position to know how much income
Meadows generated from those operations.
In addition to the Meadows account at the National Bank of
Monticello, Mr. Morris maintained a checking account in the name
of Meadows at the Champaign National Bank (Meadows account at the
Champaign National Bank) on which he and petitioner were signato-
ries and into which he deposited certain of the embezzled funds.
During 1988 and 1989, Meadows sold to unrelated persons the
sand and gravel located in the gravel pit and deposited the
proceeds from those sales into the Meadows account at the Na-
tional Bank of Monticello.
Petitioner visited the Illinois land during 1988 and 1989,
observed children playing around the gravel pit, and became
concerned that those children might sustain injuries for which
Meadows might be held liable. She therefore suggested that a
liability insurance policy be obtained to cover the Illinois
land. During 1989, petitioner signed an insurance application
for such a policy in which she indicated that the applicant's
primary occupation was "Accountant". Petitioner signed a check
for $100 drawn on the Meadows account at the Champaign National
Bank that was used to pay a premium for that policy.
The Form 1120S that Meadows filed for 1988 was signed by Mr.
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Last modified: May 25, 2011