J.J. Zand - Page 85

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          exhibit if the funds in the WHIP Barclays Bahamas bank account              
          were subject to the control of Dr. Fallah, Diesel Power, or the             
          WHIP entity itself.  Accordingly, the WHIP funds should have been           
          reported as income by petitioner.                                           
               A significant amount of the Lockheed fees was paid to Diesel           
          Power on petitioner's instructions and were, therefore, not                 
          included in the CTC receipts journal.  Some of these payments               
          were commissions from the P-3 aircraft sale, and some were not.             
          To the extent that the payments were based upon the P-3 aircraft            
          sale, we discuss them in the following paragraph.  To the extent            
          that the payments were not based on the P-3 aircraft, there is              
          little evidence in the record showing Diesel Power's involvement            
          in earning the commissions.  Petitioner did virtually all of the            
          planning and implementing of the C-130 Lockheed sales.  He signed           
          the consulting agreements and he modified them to adjust                    
          commissions.  There is very little evidence that Diesel Power had           
          anything to do with these transactions other than to be the named           
          recipient of some of the checks.  Accordingly, we hold that the             
          entire amount of the Lockheed payments to Diesel Power that                 
          involved anything except the P-3 aircraft sales should have been            
          reported by petitioner as income.                                           
               Both Sunvaco and Diesel Power received commissions from                
          Lockheed for the sale of P-3 aircraft.  The only fee that appears           
          to be at issue with regard to Sunvaco is the termination fee paid           





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