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handed over the insurance proceeds to petitioner, which he
deposited into his own personal trust account.
Petitioner told the Putmans that the estate would be
processed in approximately 6 months to a year, and that in the
interim they could get cash advances as necessary for important
expenses. From May 1987 to May 1988, the Putmans periodically
requested and received cash advances from petitioner. In May
1988, petitioner misrepresented to the Putmans that the probate
judge had restricted their allowances to $1,000 each per month
until the estate was settled, which he promised would be any day.
In July 1988, petitioner misrepresented to the Putmans that the
judge had "frozen" the assets of the estate, and that they could
not get any money from it. On September 15, 1988, petitioner
admitted to the Putmans that he could not disburse the estate
moneys to them.
Petitioner's deposits from the estate trust account into
three separate bank accounts owned or controlled by him,2 when
netted against payments made to the beneficiaries of the estate,
amounted to $272,425 in 1987, and to $145,547 in 1988. These are
the amounts respondent has determined, after giving effect to
respondent's concession, see supra note 1, that are included in
petitioner's gross income for these years.
2 Only petitioner, and perhaps one of his secretaries, had
signature authority over these three accounts.
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