Steven J. Romer - Page 10

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          Bridgehampton Estates, Inc. (Bridgehampton), for the purpose of             
          obtaining additional working capital.  Petitioner personally                
          guaranteed this loan, no portion of which has been repaid.                  
               Of the total $4.5 million in funds obtained from                       
          Bridgehampton, at least $900,000 was deposited by petitioner into           
          a checking account of New Gold maintained at Chemical Bank.                 
          After these funds were deposited into this New Gold account at              
          Chemical Bank, checks drawn on the account required the                     
          signatures of both petitioner and Lloyd Goldman (Goldman), the              
          majority stockholder of Bridgehampton.                                      
               Petitioner was not authorized to sign Goldman’s signature on           
          New Gold's checks, and petitioner was not authorized to use any             
          of the funds loaned to New Gold by Bridgehampton for his personal           
               In connection with petitioner's application for the above              
          loan from Bridgehampton, petitioner gave Goldman a personal                 
          financial statement reflecting that petitioner had over                     
          $5 million of cash in various bank accounts, a net worth of at              
          least $16 million, and a gross income for 1990 of $610,000.                 
               On three checks totaling at least $575,000 drawn on the                
          account of New Gold at Chemical Bank (in which account the funds            
          loaned by  Bridgehampton had been deposited), petitioner forged             
          Goldman's signature and, without permission of Bridgehampton or             

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