Carolyn M. Lee - Page 8

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            own use or personal benefit $152,513 in 1988 and $186,094 in 1989                         
            in connection with her work at Camp Lejeune, North Carolina; (2)                          
            in 1988, she deposited $89,000 of the misappropriated funds in                            
            various bank accounts; (3) in 1989, she deposited $159,000 of the                         
            misappropriated funds in various bank accounts; (4) petitioner                            
            used the misappropriated funds in 1988 to buy three vehicles, a                           
            computer, and to pay for a European vacation, and in 1989 to buy                          
            several vehicles, to buy and improve property, and to pay for a                           
            vacation; (5) she did not report the income that she                                      
            misappropriated; (6) she understated her taxable income for those                         
            years; and (7) all of each understatement for 1988 and 1989 was                           
            due to fraud with intent to evade taxes.                                                  
                  In the answer, respondent alleges specific facts which,                             
            having been deemed admitted, clearly and convincingly show that                           
            petitioner fraudulently underpaid her income taxes for 1988 and                           
            1989.  Thus, we grant respondent's motion for entry of default                            
            pursuant to Rule 123(a).                                                                  
                  To reflect the foregoing,                                                           

                                                            An appropriate order will                 
                                                      be issued, and decision will                    
                                                      be entered for respondent.                      










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