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been of use to Ashland. These payments were not recorded in
CTC's books for 1973 through 1975, and Ashland and All Patents
were not listed as customers of Diesel Power in its financial
statements for the periods ending March 20, 1974, and March 20,
1975. The evidence is clear that Diesel Power did not earn the
commissions paid by Ashland during these periods, nor those paid
by Lockheed. The consultant agreements entered into by Lockheed
and Ashland for the sale of their products in Iran were
terminated once petitioner stopped traveling to Iran in 1975.
The termination payments were recorded in CTC's books only after
petitioner had to sign statements alleging compliance with the
consultant agreements. That occurred only after the Government's
probe into foreign business transactions.
In addition, petitioner understated substantial interest
income he received from foreign bank accounts in 1974, 1975, and
1976. During those 3 years petitioner earned interest on the
bank accounts or time deposits in the name of WHIP at the
Barclays Bank Bahamas in the amounts of $25,025, $29,338, and
$16,998, respectively. He admitted that WHIP was merely a shell
corporation that conducted no business of its own. Petitioner
directed all activities of WHIP and invested the funds of WHIP
for his personal benefit in time deposits at the Barclays Bank.
He closed WHIP's bank accounts in 1978 when he withdrew the
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