Michael W. Rehtorik, et al. - Page 9

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               From 1984 through 1987, petitioner also made certain                   
          repayments to investors of principal and payments of interest               
          with respect to managed account funds, and petitioner used funds            
          withdrawn from the bank accounts in his name for such repayments            
          of principal and payments of interest.                                      
               Also, in 1987, with funds withdrawn from the bank accounts             
          in his name, petitioner purchased for and in the name of GSC                
          $37,725 in gold Krugerrands, which Krugerrands were later sold at           
          a profit that GSC received.                                                 
               On February 27, 1987, after having received $100,000 from a            
          new managed account investor and after depositing such $100,000             
          into one of the bank accounts in his name, petitioner purchased             
          with funds withdrawn from the same bank account into which the              
          $100,000 had been deposited a cashier’s check for $100,000 that             
          was endorsed over to GSC America.  This $100,000 was then                   
          transferred from GSC America to GSC and was apparently used for             
          GSC’s expenses and investments.                                             
               The following schedule reflects and, where necessary,                  
          estimates for each year the amount of GSC’s expenses that were              
          paid with funds withdrawn from the bank accounts in petitioner’s            
          name, including funds used to participate in hedge transactions,            
          funds used to pay principal and interest to managed account                 
          investors, funds used to purchase gold Krugerrands, and the                 
          $100,000 that in February of 1987 petitioner received from a                






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