Reaves Livestock, Inc., et al. - Page 6

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          went to the barn.  Mr. Reaves also worked in the office, but he             
          did no bookkeeping.                                                         
               During the years in issue, Reaves Livestock had about nine             
          truck drivers and five or six barn men.  The barn men loaded and            
          unloaded livestock, weighed them, and put them in pens.                     
               Samuel Ray Cummings (Cummings) worked for Reaves Livestock             
          during the 1980's.  He stole money from Reaves Livestock while he           
          worked there.                                                               
               Farmers sometimes asked Reaves Livestock to pay cash for               
          their livestock.                                                            
               From 1984 to 1987, Reaves Livestock reported gross receipts            
          and taxable income as follows:                                              
                    Year      Gross receipts      Taxable income                      
                    1984      $17,565,725         $77,149                             
                    1985      19,269,418          99,687                              
                    1986      23,317,287          49,739                              
                    1987      22,676,647             35,838                           
                    Total   $82,829,077           $262,413                            
                    b.   Reaves Livestock's Bookkeepers--Bonnie Wright and            
                         Jeff Lawson                                                  
               Mr. Reaves met Bonnie Wright (Wright) in the late 1960's               
          when they worked at Powell Livestock Co.  Wright kept records and           
          wrote checks for Powell Livestock Co.  Wright worked for Reaves             
          Livestock from the early 1970's to 1987.  Wright was the                    
          corporate secretary and treasurer for Reaves Livestock.                     
               Wright had a son, Jeff Lawson (Lawson).  At her request, Mr.           
          Reaves hired Lawson as a bookkeeper for Reaves Livestock around             





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