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written to Jim Butler or anyone else, and that he did not know
that Reaves Livestock had lent $55,000 (discussed below at par.
G) to Mr. and Mrs. Reaves. Those statements were false.
Mr. Reaves took no action against the bank or Lawson for
cashing the 282 nominee checks.
D. The John Chavis Checks
Mr. Reaves told Lawson to give money to Mrs. Reaves each
month by writing a Reaves Livestock check for $250. For each of
the 36 months from December 1984 to November 1987, Lawson or
Wright wrote a $250 check with the notation "hay", except for one
that said "salary". Thirty-four of the checks were payable to
John Chavis, one to Ray Hunt, and one to Ray Ofendine (John
Chavis checks). The John Chavis checks were payable to
fictitious payees. Mrs. Reaves signed 29 of the checks, Mr.
Reaves signed 5, Wright signed 1, and 1 was unsigned. Mrs.
Reaves endorsed 35 of the checks by signing John Chavis or Linda
Reaves. One was not endorsed. She countersigned 7 of the 36
checks and cashed all of them.
These payments totaled $2,250 in 1984, and $3,000 in 1985,
1986, 1987, and 1988. These payments were deducted by Reaves
Livestock as a business expense and were not reported as income
by Mr. and Mrs. Reaves.
E. The Lumberton Auction Checks
Lumberton Auction Co., Inc. (Lumberton Auction) issued the
following checks, all of which were cashed:
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