Reaves Livestock, Inc., et al. - Page 27

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          lived beyond their means.  There is certainly no showing that               
          Lawson or Wright received nearly $500,000 from the 282 checks.              
               Mr. Reaves' claim that Lawson never had authority to endorse           
          checks for Reaves Livestock is inconsistent with the fact that              
          Lawson endorsed some of the Lumberton Auction checks.  Mr. Reaves           
          authorized Ballard to permit Lawson to endorse third party                  
          checks.  The recorded telephone conversation also shows that Mr.            
          Reaves authorized Lawson to endorse checks.                                 
               Petitioners contend that the recorded telephone conversation           
          shows that Mr. Reaves did not receive the cash from the 282                 
          checks and that Lawson embezzled it.  We disagree.  During that             
          conversation, Mr. Reaves acknowledged that he had received cash             
          from Lawson when he advised Lawson to say that Mr. Reaves needed            
          the cash for business purposes and that Lawson did not know what            
          Mr. Reaves did with the money.                                              
               Petitioners contend that Lawson could not have given Mr.               
          Reaves the cash from the 282 checks because Mr. Reaves and Lawson           
          were rarely in the office at the same time.  We disagree.  Mr.              
          Reaves and Lawson were together sometimes, such as when Lawson              
          and Wright gave Mr. Reaves the weekly financial report of Reaves            
          Livestock, and when Lawson and Mr. Reaves played poker.                     
               Petitioners point out that Lawson initially misled Bozeman             
          about the 282 checks.  We believe Lawson adequately explained why           








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