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provide credible substantiation. Petitioner denied that he had
instructed anyone to fabricate loan documents, but he testified
that the promissory notes for $7.5 million were created and
delivered to the Texas Department of Banking as part of his plan
to acquire the bank and that his family did not owe him money at
that time.
Additionally, Esquivel testified that she never submitted
false information about petitioner's finances to anyone or any
entity. She admitted to sending information relating to
petitioner's purchase of the shopping center that stated that
petitioner's income was $150,000 annually. She then testified
that petitioner had no income. Petitioner's and Esquivel's
testimony are inconsistent, improbable, and unworthy of belief.
Respondent has proven by clear and convincing evidence an
underpayment of tax due to fraud for each year. Petitioner has
not proven that any part of the underpayment is not attributable
to fraud. See sec. 6663(b).
Decision will be entered
for respondent.
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