J.J. Zand - Page 90

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               In addition, petitioner held himself out to the U.S. Senate            
          Foreign Relations Committee as Ashland's representative through             
          "his companies".  While petitioner might have had a certain                 
          incentive to increase his own business stature by holding himself           
          out as the owner of those companies, we think that his                      
          representation was not based on a factual foundation.  At the               
          trial, in response to a question about who received the funds               
          from the All Patents account petitioner testified,  "I have                 
          absolutely no knowledge and I didn't want to have any."  By this            
          he appeared to be implying that there may have been something               
          improper or illegal about the arrangement between NIOC and                  
          Ashland via All Patents.  But there is evidence that petitioner             
          was Ashland's actual representative and performed the services              
          for which payments were made.  Accordingly, we hold that                    
          petitioner earned the funds received pursuant to the Ashland                
          consulting agreement.                                                       
               Lastly, we note that Ashland's 1975 payments in All Patents'           
          name were deposited to the Diesel Power Banque de Paris account,            
          of which petitioner was an authorized signatory, rather than to             
          an All Patents account.  However, there is no evidence that                 
          Diesel Power was involved in the Ashland negotiations.  We find             
          no significance in the fact that petitioner relinquished part of            
          his interest in Diesel Power in late 1974.  If, as petitioner               
          contends, the Ashland payments to All Patents did not belong to             





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