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Petitioner, however, transferred the $4,087,000 balance of
the sales proceeds into a "special" checking account in his name
at Chemical Bank. The Marion Family Trusts were not reflected on
Chemical Bank's records as having an interest in the account.
The account into which the $4,087,000 was transferred did not
constitute one of petitioner's client escrow accounts.
On or about March 7, 1989, using the $4,087,000 that had
been obtained from the Marion Family Trusts and that had been
transferred by petitioner into a checking account at Chemical
Bank, petitioner purchased two certificates of deposit at
Chemical Bank in the respective amounts of $2,501,000 and
$1,586,000, in the name of “Steven J. Romer, Trustee,” not in the
name of the Marion Family Trusts.
Occasionally, petitioner forwarded payments to the Marion
children, as beneficiaries of the Marion Family Trusts,
purportedly representing interest payments on the certificates of
deposit that petitioner had purchased. State and Federal taxes
due on the quarterly interest payments received on the two
certificates of deposit were paid by petitioner in the name of
the trusts.
On July 10, 1990, Chemical Bank issued a renewal of a
$1,184,000 certificate of deposit in the name of “Steven J.
Romer, Trustee,” not in the name of the trusts.
Neither of the Marion Family Trusts, nor any member of the
Marion family, ever received from petitioner any repayment of
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