Roy G. and Dorothy M. Welker - Page 5

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               Richard Breslin (Mr. Breslin), a C.P.A., was the accountant             
          for Miller-Senate.  Mr. Breslin and Mr. Welker regularly went to             
          lunch each month after Mr. Breslin reviewed Miller-Senate's                  
          records.  At these lunches, Mr. Welker occasionally asked Mr.                
          Breslin questions about tax return preparation.  Mr. Breslin                 
          remembered questions regarding how to handle a dividend                      
          exclusion, report a gain on the sale of stock, and report income             
          that was not evidenced by a Form 1099.  Mr. Breslin did not                  
          remember having any conversations with Mr. Welker regarding the              
          tax treatment of gifts.                                                      
               Brockland Pontiac did not issue any Forms 1099 to Mr. Welker            
          for the cash payments; however, Mr. Welker was aware that he had             
          to report all his income on his tax return regardless of whether             
          he received a Form 1099.  Mr. Welker did not report the cash                 
          payments as income for the years in issue.                                   
               On March 29, 1989, Special Agent Debra K. Alexander (Ms.                
          Alexander) and Revenue Agent Timothy E. Neighbors (Mr. Neighbors)            
          interviewed Mr. Welker at his home.  Ms. Alexander read Mr.                  
          Welker his rights and informed him that he was under criminal                
          investigation for unreported income he received from Brockland               
          Pontiac.  Mr. Welker stated that, for the years in issue, he                 
          reported all of his income on his tax returns.  Mr. Welker also              
          told Ms. Alexander and Mr. Neighbors that he did not receive any             

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