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At the bottom of the message, Riat wrote "And so we did".
Petitioner's manipulation of Newtowne enabled him to obtain
personal benefits that he would not have been able to enjoy under
an ordinary business relationship. Through his intimidation
tactics, petitioner was able to reap the benefits from "cost
savings", the purchase of two office buildings at a reduced cost,
the construction of his personal residence, and a Ford van,
infra.
(a) Cost Savings (Including Park Place)
Before obtaining financing for a given project, Newtowne
would prepare a detailed budget estimating specific costs
allocated to specific line items in the budget. Any funds
remaining upon the completion of the project were known
internally as "cost savings". Cost savings were determined on a
line-by-line basis for each item of the project by comparing the
estimated cost to the actual cost. Petitioner and Newtowne
entered into an agreement whereby petitioner would receive 100
percent of the cost savings for certain items of the budget,
Newtowne would receive 100 percent for other items, and the cost
savings from the remaining items would be split equally. The
checks Newtowne received for cost savings were often endorsed
over to petitioner.
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