William C. Beretta - Page 6

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                  In January of 1986, Mr. Beretta invested $30,000 to open a                            
            Peppertree Restaurant in Atascadero, California.  Mr. Beretta's                             
            partner in this venture was Garlo Enterprises, Inc., a wholly                               
            owned corporation of Gary Longfellow.  Although the Atascadero                              
            Peppertree Restaurant was owned by Garlo Enterprises, Inc., Mr.                             
            Beretta was the primary financial force behind the restaurant.                              
            Garlo Enterprises, Inc., and Mr. Beretta formed a partnership to                            
            operate the Atascadero Peppertree Restaurant.  Mr. Beretta                                  
            assisted in the preparation of Garlo Enterprises, Inc.’s,                                   
            corporate tax returns (Forms 1120) for the years 1986 through                               
            1992.                                                                                       
                  Mr. Beretta and Mr. Longfellow agreed to split the profits                            
            from the Atascadero Peppertree Restaurant equally.  Mr. Beretta                             
            suggested to Mr. Longfellow that they "skim" money from the cash                            
            register in order to avoid paying taxes on any profits from the                             
            restaurant.  Mr. Longfellow agreed, and he began removing between                           
            $100 and $200 a day from the cash register, depending on the                                
            restaurant's cash-flow.  At the end of the day, Mr. Longfellow                              
            would place Mr. Beretta's money in a bag for Mr. Beretta to come                            
            by and retrieve.                                                                            
                  In order to account for the skimmed proceeds, Mr. Longfellow                          
            would make false overrings on the cash register and then remove                             
            an amount of cash equal to the false overring.  Therefore, the                              
            skimmed profits were not reported on the restaurant's books.                                





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