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H&B's bookkeeping system involved the use of a
"pegboard ledger", a sheet of checks held in place over
a permanent ledger by means of pegs along the left side of
a board. Information written on a check was transferred to
the ledger by means of carbon paper attached to the back of
the check. The ledger contained a column in which to enter
deposits, a column in which to enter the current balance
in the account, and a column in which Ms. MacKall or
petitioner would sometimes enter comments about the
purposes for which checks were issued.
During the period in issue, the dollar amounts of
checks drawn on the First Interstate account are often
greater than the current balance shown in the ledger.
In addition, there is no current balance shown for some
periods. Thus, checks would often be drawn despite an
apparent balance of zero in the account, only to have a
sufficient balance entered later without explanation.
Approximately once every month, Mr. Petty or his mother,
Ms. Melba Petty, would travel to Oklahoma City to collect
the bank statements and canceled checks.
H&B's drivers sometimes obtained fuel for their
tractors from a tank located on the site where the tractors
were parked. On other occasions, the drivers would
purchase fuel from unrelated third parties using cash
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Last modified: May 25, 2011