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Mr. Reaves could tell how well Reaves Livestock was doing
financially from the amount and the profit margin of inventory
that he bought and sold. He could detect a mistake as small as a
few thousand dollars. Mr. Reaves did not know what books and
records Reaves Livestock kept during the years in issue, nor did
he review its books and records.
d. Mrs. Reaves' Role at Reaves Livestock
Mrs. Reaves was vice president of Reaves Livestock during
the years in issue. From 1984 to 1988, she occasionally helped
in the office by writing invoices, weight tickets, bills, and
checks including payroll. She also checked daily stockyard
bills. She did no bookkeeping. Mr. and Mrs. Reaves reported
that Mrs. Reaves received a salary from Reaves Livestock of
$4,067 in 1984, $4,071 in 1985, $3,000 in 1986, and $3,000 in
1987.
B. The First Citizens Bank Accounts
1. Establishment and Control of The Accounts
Reaves Livestock is about one mile from South of the Border,
South Carolina. Mr. Reaves opened accounts at First Citizens
Bank & Trust Co. (First Citizens) at South of the Border and
maintained them during the years in issue in the names of S&J Hog
Farm (S&J) and George K. Reaves (First Citizens accounts). Mr.
Reaves caused some unreported Reaves Livestock receipts to be
deposited in the First Citizens accounts. He also caused some
Reaves Livestock checks (which Reaves Livestock deducted as
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