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were to be deposited into the CTC CNB account. Although
initially it was discussed as being a 50/50 arrangement between
petitioner personally and Stewart & Stevenson, it later was
decided to form the venture between Diesel Power and Stewart &
Stevenson.
At the same time, there was an agreement between IMICO and
Diesel Power for IMICO to construct a warehouse for storage of
the parts. Diesel Power was to pay IMICO rent for use of the
warehouse. Petitioner signed this agreement on behalf of Diesel
Power. However, Diesel Power was not actually involved in
petitioner's agreements with SEDCO or IMICO. For example, a
Diesel Power individual asked CTC to please inform IMICO with
regard to the rental payments for which Diesel Power had received
bills that "this is not a DPTC project". Subsequently, Stewart &
Stevenson sold its interest in the joint venture to SEDCO.
Although there is evidence that petitioner and his CTC employees
were personally involved in the SEDCO joint venture project,
there is no evidence of any involvement in this project by Diesel
Power employees. Diesel Power was merely informed of the
arrangement after it was established. Under this arrangement,
CTC provided quotations to SEDCO for various types of equipment.
Diesel Power was not involved in the preparation or presentation
of these quotations, other than to be sent copies of them.
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