Michael J. Fitzpatrick - Page 5

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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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