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embezzlement. James v. United States, 366 U.S. 213, 219 (1961);
Collins v. Commissioner, 3 F.3d 625, 629-631 (2d Cir. 1993),
affg. T.C. Memo. 1992-478.
It also is well established that, based on petitioner's
criminal conviction in New York State court, petitioner in this
case is estopped from denying that he embezzled funds from his
clients (namely, Votano, the Marion Family Trusts, Saferstein,
and Ripps). Allen v. McCurry, 449 U.S. 90, 94 (1980); Montana v.
United States, 440 U.S. 147, 153-164 (1979); Parklane Hosiery Co.
v. Shore, 439 U.S. 322, 331-333 (1979); Disabled Am. Veterans v.
Commissioner, 942 F.2d 309, 312-314 (6th Cir. 1991), revg. 94
T.C. 60 (1990); De Cavalcante v. Commissioner, 620 F.2d 23 (3d
Cir. 1980), affg. Barrasso v. Commissioner, T.C. Memo. 1978-432.
With regard, however, to the specific amount of funds that
petitioner embezzled from his clients, the collateral estoppel
effect of petitioner's State court conviction for embezzlement
combined with the State court order of restitution is less clear.
Arguably, the restitution order would appear to establish the
specific amount of funds petitioner embezzled from each of the
clients (namely, $741,000 in 1988 from Votano, $4,087,000 in 1989
from the Marion Family Trusts, $975,000 in 1989 from Saferstein,
and $1,200,000 in 1990 from Ripps). In Meier v. Commissioner, 91
T.C. 273, 286 (1988), which involved the collateral estoppel
effect of a prior action for accounting of misappropriated funds,
we held that both the fact of misappropriation and the specific
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