Dennis C. Gandy - Page 17

                                       - 17 -                                         

          that petitioners received from the borrowers were in the form of            
          checks.  During 1985 through 1987, petitioners received payments            
          totaling at least:                                                          
                              Year      Amount                                        
                              1985      $    624.10                                   
                              1986      40,306.17                                     
                              1987      152,480.13                                    
               For some of the loans, documents were drawn up and                     
          settlement conducted by an attorney or a title company.                     
          Petitioners provided the borrowers with repayment schedules                 
          indicating the amounts of principal and interest within each                
               In about early 1986, Mr. Gandy approached Cary Murray                  
          (Murray), then president of the First State Bank of Van, and told           
          him that he had approximately $800,000 that he wanted to invest             
          in real estate loans.  Murray and his partner Roy Carty received            
          a loan from petitioners in the amount of $30,000 on June 24,                
          1986.  Closing was conducted by a title company.  Murray received           
          a second loan in the amount of $25,000 on October 10, 1986.                 
          Closing was conducted by the same title company.  Each time,                
          Mrs. Gandy brought the funds in cash to the title company, which            
          in turn gave the borrowers cashier's checks.  Murray made                   
          payments on these loans by checks made out to "Dennis Gandy",               
          beginning approximately 1 month after receipt of the loan                   
          proceeds.  Petitioners gave Murray a form each year stating the             
          amount of interest he had paid.                                             

Page:  Previous  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  Next

Last modified: May 25, 2011