- 6 -
resell to investors in the normal course of GSC’s retail
securities business.
Some managed account funds, along with other funds such as
petitioners’ substantial salary income, were deposited into bank
accounts in petitioner’s name, from which accounts funds were
used by petitioner for business expenses and investments relating
to GSC and also for personal purposes.
The following schedule reflects, for the years in issue,
managed account funds that were deposited into GSC’s corporate
bank accounts, our estimate (based on the evidence before us) of
managed account funds that were deposited into bank accounts in
petitioner’s name, and total deposits into bank accounts in
petitioner’s name.
Managed Account Funds Deposited Into Total Deposits
GSC’s Bank Accounts Into Bank Accounts
Year Bank AccountsIn Petitioner’s Name In Petitioner’s Name
1984 $271,13O $177,778$299,965
1985 226,255 158,340 312,039
1987 7,000 200,000 293,212
Total $504,385 $536,118 $905,216
At the end of 1986, petitioner hired a new accounting firm
to perform for 1986 a yearend audit of GSC’s books and records.
This accounting firm determined that GSC’s books and records were
not complete. In 1987, upon verifying through yet another
accounting firm serious errors and omissions in GSC’s books and
records and on advice of GSC’s corporate counsel, petitioner
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011