Steven J. Romer - Page 9

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              Ripps never gave petitioner permission to use the $1.2                 
          million, nor the certificate of deposit petitioner purchased with           
          Ripp’s $1.2 million, as collateral on his personal loans.                   
               Ripps never received back from petitioner any portion of the           
          $1.2 million.  As a result of the loss of the $1.2 million, Ripps           
          received $100,000 from the New York State Lawyers’ Fund for                 
          Client Protection.                                                          

          $350,000 Received From Banks                                                
               During December of 1990, petitioner obtained $350,000 by               
          writing checks on checking accounts at Chemical Bank and at                 
          Citibank over which petitioner had control, but in which accounts           
          there existed insufficient funds to cover the checks petitioner             
          had written.  No portion of this $350,000 obtained by petitioner            
          through this check-kiting scheme has been repaid to the banks.              
               During 1990, petitioner and his various controlled                     
          corporations sought and obtained loans from Chemical Bank and               
          from Citibank for various real estate and other business                    
          activities in which petitioner and his controlled corporations              
          were involved.  In applying for the bank loans, petitioner                  
          represented to personnel of the banks that he had a net worth of            
          at least $5 million.                                                        

          $575,000 Received From Bridgehampton Estates                                
               On August 31, 1990, New Gold Equities Corp. (New Gold), a              
          corporation controlled by petitioner, borrowed $4.5 million from            

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