Steven J. Romer - Page 6

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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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