- 4 -
petitioner’s accounting clients: William and Mary Foss (the
Fosses), Vito and Adella Navar (the Navars), and Frank and
Benette Posa (the Posas). The principal amounts of the loans
from the Fosses, Navars, and Posas were $53,000, $10,000, and
$5,000, respectively. The loan checks were made to WSAI, and
deposited in WSAI’s checking account at National City Bank. WSAI
issued promissory notes to the lenders, providing that interest
would be paid at a rate of 12 percent per year. The maturity
date of each of the notes was approximately 1 year after
issuance.
On March 9, 1987, the Posas lent $5,000 to WSAI, and
received notes as follows:
Entity Date Amount
WSAI 2/17/87 $5,000
WSAI 3/01/88 5,000
WSAI4 3/01/89 5,000
On May 5, 1987, June 8, 1987, and June 29, 1987, the Fosses
lent $18,000, $10,000, and $25,000, respectively, to WSAI, and
received notes as follows:
Entity Date Amount
WSAI 4/06/87 $28,000
WSAI 6/29/87 25,000
4In 1989, petitioner replaced the prior note with a note
issued in the name of WSAI, which was by then no longer an active
corporation. When the 1989 notes were typed, petitioner’s office
inadvertently transcribed the information from the client’s old
notes.
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