Angela Schwimmer - Page 6

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                On February 14, 1989, Martin and his co-conspirator were                     
          convicted of racketeering, unlawful acceptance of pension plan                     
          kickbacks, embezzlement of employee benefit plan funds,                            
          conspiracy to defraud the U.S. Government, and income tax evasion                  
          for 1981, 1982, 1983, and 1984 in connection with the scheme to                    
          embezzle from the pension funds.                                                   
                In 1989, Martin entered into a forfeiture agreement under                    
          which Martin forfeited to the U.S. Government various assets that                  
          were regarded as acquired by Martin with embezzled funds.1  The                    
          amount of funds realized by the U.S. Government upon liquidation                   
          of these assets is not found in the record.  Also in 1989, Martin                  
          transferred title in the Kings Point residence from his and                        
          petitioner's names to just petitioner's name.                                      
                In 1990, various assets of Martin that had not been acquired                 
          by Martin with embezzled funds were sold, and a total of $812,148                  
          was realized from such sale and credited towards satisfying                        
          Martin’s obligation under the forfeiture agreement.                                
                In 1992, as a result of his conviction, Martin was sentenced                 
          to imprisonment for 10 years, fined $1.6 million, and ordered to                   


          1     Under the forfeiture agreement and pursuant to 18 U.S.C.                     
          1963 (1994), the following assets were regarded as acquired by                     
          Martin with embezzled funds and were forfeited by Martin to the                    
          U.S. Government:  Marketable securities; precious gems; interests                  
          in retirement plan and trust of the above-referenced defined                       
          benefit plan; 1978 Rolls Royce; 1986 Mercedes Benz; 1984                           
          Corvette; 1974 Buick; 1986 Honda motorcycle; loans receivable                      
          from various entities; shares of stock in various corporations;                    
          and various limited partnership interests.                                         




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