-25- property. * January 13, 1989--IES check deposited into Strong Hope's Union Bank account, purportedly as a deposit toward the purchase price of the Stockton Street property. Ms. Ng purchased a money order for $85,165.54 with funds from Strong Hope's Union Bank account. She used the money order to make a mortgage payment on the Stockton Street property, one-half of which she owned outright. One-half of the payment ($42,583.27)--benefiting the other 50- percent interest in the Stockton Street property Strong Hope owned --was recorded as a loan to Strong Hope from Ms. Ng. * May 16, 1989--Founders issued check to IES for $309,056.94. * May 23, 1989--IES issued check to Strong Hope for $157,161.59, representing net proceeds after tax withholding from sale of the Lombard Street property. Of the $303,828.26 disbursed, IES withheld $110,000 for the IRS and $36,666.67 for the California Franchise Tax Board. * May 25, 1989--IES check for $157,161.59 deposited into Strong Hope's Union Bank account, where the balance was $1,469 immediately prior to the deposit. Ms. Ng purchased 3 cashier's checks on May 25 with the deposited funds: $100,000 payable to Strong Hope Limited, a California corporation (Strong Hope Limited), which is not the same entity as petitioner Strong Hope, Ltd., a Hong Kong corporation and purported seller of the Stockton Street property; $25,000 payable to Strong Hope Limited; andPage: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
Last modified: May 25, 2011