Paul L. Tregre, Jr. - Page 17

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          Using this power to influence, petitioner caused the paint                  
          department to purchase various chemical compounds from Besco.  In           
          exchange, Besco paid petitioner certain amounts of money.  This             
          is a classic kickback situation, and petitioner's attempt to                
          camouflage the payments as commissions must fail.                           
               Both Tubre's and Kahn's testimony at trial is convincing.              
          Tubre described a series of events involving petitioner dating              
          back to the early 1970's.  He testified that petitioner first               
          sought to promote Besco's products to customers other than ASI              
          but that this endeavor proved unsuccessful.  Tubre further                  
          testified that petitioner subsequently expressed interest in                
          receiving the kickback payments with respect to purchases ASI's             
          paint department made from Besco.  Tubre also testified that                
          petitioner did not perform any activity on behalf of Besco during           
          the years at issue in exchange for the payments petitioner                  
          received.  Both Tubre and Kahn testified that the payments were             
          made to petitioner out of fear of losing business from ASI's                
          paint department.  Tubre further testified that he alone                    
          initiated and serviced Besco's accounts with ASI, both within and           
          without the paint department.  Tubre also testified that he, on             
          behalf of Besco, lied to Balash, when he told her that the                  
          payments to petitioner were in exchange for services performed by           
          petitioner with respect to non-ASI accounts.  He also testified             
          that it was out of fear of losing Besco's account with ASI's                
          paint department that prompted him to lie to Balash.                        




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