Anthony G. and Shirley A. Olbres - Page 10

                                       - 10 -                                         
                 Name of Account           1986        1987        1988               
          Second Kennebunk White Star                                                 
          checking account                  --          --      70,950                
                                                                                   
          Total                         1,308,949 2,637,058 2,135,264                 
               Petitioners treated the funds in the Indian Head business              
          savings account and the 1988 Indian Head business savings account           
          over which they had complete control as their own funds, and they           
          used those funds for personal expenditures.                                 
               Ms. Olbres maintained cash receipts journals (cash receipts            
          journals), cash disbursements journals (cash disbursements                  
          journals), petty cash journals (petty cash journals), and                   
          payroll journals (payroll journals) for Design Consultants and/or           
          White Star.  Around 1975, Wilson P. Dennett (Mr. Dennett), an               
          accountant retained by petitioners, created the format for, inter           
          alia, the cash receipts journals and showed Ms. Olbres how to               
          maintain those journals.                                                    
               When Design Consultants and/or White Star billed a client              
          for services rendered, Mr. Olbres wrote a draft of an invoice,              
          and Susan Rubenstein, who worked for petitioners at Design                  
          Consultants and White Star as a secretary from December 1986                
          through June 1988, and/or another member of the office staff                
          typed that invoice and mailed it to the client.  Three copies of            
          each invoice were made, one of which was kept in the office of              
          Design Consultants and/or White Star, one of which was sent to              
          Ms. Olbres at petitioners' house, and one of which was sent to              




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Last modified: May 25, 2011