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to be accomplished, a change in the Bank loan agreement had to be
effected.
On December 17, 1981, Inn Group Associates (Inn Group), a
limited partnership, was formed for the purpose of acquiring the
Inns. The general partner of Inn Group was R. Perry Harris, and
the limited partners were R. Perry Harris, Finley, Romeyn, Wing,
Dwyer, Tremont Street Corp., and Western Atlantic Investment,
Inc.
In December 1981, the partners of Landing and Long Wharf
entered into purchase and sale agreements with Inn Group whereby
the Inns were sold to Inn Group for $10.26 million. Pursuant to
these agreements, Inn Group assumed Landing's and Long Wharf's
obligations as to the Bank's construction loan, and Landing
received a $1 million nonrefundable deposit. Petitioner, acting
on behalf of the Bank, was a signatory to the assumption
agreement.
On December 18, 1981, Landing used the $1 million deposit to
make $250,000 payments to Finley, Romeyn, and Wing. The
remainder of the deposit was utilized to pay $50,000 in
construction bills and $200,000 to petitioner. The $200,000
payment was made to petitioner so that he would approve the
modification of the loan agreement. Petitioner directed that
Landing make the payment by two checks, one for $50,000, the
other for $150,000, which were deposited in a Panamanian bank, in
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