Rosemarie Meyer - Page 5

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          corporations, all of which were located in a single office                  
          attached to the Muttontown residence.  Although petitioner owned            
          no stock in any of Mr. Meyer's business enterprises, she held the           
          titles of vice president of East Coast and secretary of Grand-              
          Perridine.  She also served as a director of the latter                     
          corporation.  In Mrs. Meyer's capacity as secretary of Grand-               
          Perridine she attended the closing of the Muttontown property on            
          December 30, 1983, and also acknowledged her liability as a                 
          guarantor of the mortgage on that property as Mr. Meyer's wife.             
          Mrs. Meyer negotiated and issued checks on behalf of East Coast             
          in payment of monthly fees on a condominium located in                      
          Huntington, New York, that the corporation had acquired.                    
               Petitioner also managed the day-to-day finances of the Meyer           
          household through funds her husband supplied her in the form of             
          checks drawn on corporate accounts, as her husband lacked a                 
          personal checking account.  Mrs. Meyer maintained several                   
          certificates of deposit, plus savings and checking accounts, in             
          her own name at various banks during the late 1980s and early               
          1990s.  Petitioner also negotiated checks drawn on several of her           
          husband's corporations, including East Coast, Grand-Perridine,              
          Union Street Consultants, Inc., and American Express Development            
          Corp. (known alternately as American Express National Development           
          Corp.) (AED).  Such checks paid for, among other things, car                
          insurance on at least one of the five automobiles registered in             
          her name between August 1989 and January 1992, housekeeping                 




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