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Fred Sutton were deposited into the corporate account other than
as part of the store deposits.
Personal Resources
Mr. Sutton claimed that he obtained personal loans from
Charles W. Palmer, an elderly man who has known Mr. Sutton for
the latter's entire life. Mr. Palmer did not charge Mr. Sutton
interest on these alleged loans, although Mr. Palmer did charge
interest to others to whom he made loans. These loans were
allegedly made in cash by Mr. Palmer and repaid in cash by Mr.
Sutton.
Mr. Sutton testified that he would write a check to Mr.
Palmer for the amount of the loan, that Mr. Palmer would hold
that check until the loan was repaid, that on the back of that
check, the dates and amounts of Mr. Sutton's payments would be
recorded,4 and that, usually, the payments were weekly and in
amounts of $500, but sometimes they would be $1,000. Neither Mr.
Palmer nor Mr. Sutton had any contemporaneous records of these
alleged loans. Once a loan was repaid, Mr. Palmer allegedly
would return the check to Mr. Sutton, and Mr. Sutton would tear
4 Mr. Sutton testified that Mr. Palmer recorded the
payments on the back of the check. Mr. Palmer testified that he
never wrote anything, and that Mr. Sutton kept the checks and
made the payment notations. The Court did not believe the
testimony of either Mr. Palmer or Mr. Sutton in regard to these
alleged loans. Mr. Palmer testified that he kept up to $100,000
in a metal box and that he lent out money from that box over and
over again without any interest. The Court found his testimony
to be inherently incredible.
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