- 4 -
commission of $250,000, which was paid to Sand Hill at the time
of the closing on March 15, 1990. Payment was made by a check
drawn on the escrow account by Founders Title Co.; the check was
deposited in full in Sand Hill's business checking account at the
Bank of America (the Bank of America account). The $250,000
commission was included in the total gross receipts reported on
petitioners' 1990 Schedules C.
In addition to the broker's commission, on March 20, 1990,
Meiyan paid Susanna a $150,000 finder's fee for locating the
buyer of the Stockton Street property. The payment was made by a
check in Sand Hill's name bearing the handwritten notation
"consultation fee". Susanna deposited the check in full into the
Bank of America account on March 20, 1990.
B. The Eccles Avenue Property Transaction
Beginning in March of 1990, petitioner worked with Sanrio on
a build-to-suit development deal which evolved into the purchase
of an existing building located at 570-586 Eccles Avenue in San
Francisco (the Eccles Avenue property). On June 29, 1990,
petitioner, d.b.a. Sand Hill, executed a purchase and sale
agreement (the agreement) with the seller for the purchase of the
Eccles Avenue property. When he signed the agreement, petitioner
knew that Sanrio wanted to purchase the Eccles Avenue property
for use as its headquarters. Because of a bad business
relationship between Sanrio and the seller, petitioner, rather
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011