Big Hong Ng - Page 11

                                        -11-                                          
               Tip Account                                                            
               One of the Hong Kong accounts the revenue agent examined was           
          referred to by the parties as the tip account.  The reason for such         
          nomenclature is because the deposits into this account came from            
          tips paid to employees of Ocean City HK.  Ms. Ng denies ownership           
          of this account.                                                            
               Ocean City HK has seating capacity for approximately 5,000             
          people and is the largest restaurant in Hong Kong.  Ms. Ng owned at         
          least a 4.5-percent interest in Ocean City HK and was employed              
          there as deputy managing director from 1978 until 1991. Her duties          
          included supervision  of  personnel,  floor  shows,  and  food              
          preparation.  She signed checks on the restaurant's behalf but was          
          not involved in accounting.                                                 
               Ms. Ng and her brother, Sik Yuen Ng, who also was employed at          
          Ocean City HK, opened the tip account at Wing Lung Bank on March            
          11, 1981.  The account was in their names, and they each had                
          signature authority.                                                        
               Deposits to the tip account from 1986 through 1990 were                
          generally in cash as follows:                                               
          Year      Amount Deposited         Number of Deposits                       
          1986      $1,543,418               156 (6 noncash deposits)                 
          1987      231,541                  57 (3 noncash deposits)                  
          1988      228,910                  49 (all cash)                            
          1989      567,919                  36 (3 noncash deposits)                  
          1990      5,301                    1 (cash)                                 
               All the withdrawals from the tip account which the revenue             
          agent could trace were for the benefit of Ms. Ng or a restaurant            




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Last modified: May 25, 2011