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petitioner's stockholders, dated July 15, 1991, confirming that the
obligation had been assumed by petitioner's stockholders and that
the comptroller had been authorized to write off the debt.
On August 15, 1991, VIG also sent a letter to ASA requesting
confirmation that petitioner was not indebted to ASA. On September
13, 1991, ASA confirmed that petitioner had an outstanding balance
of zero as of June 30, 1991.
Destruction of Remaining ASA Merchandise
Sometime in 1993, Martha Balzac (vice president of ASA and Mr.
Balzac's wife) visited petitioner's offices and informed Mr.
Campos, Sr., that he could destroy the remaining unsold ASA
consignment merchandise. Accordingly, in 1995,3 CPI destroyed all
of the remaining approximately $1.8 million of ASA merchandise. On
its computer-generated June 30, 1991, inventory listing, petitioner
identified the discarded merchandise by highlighting the
merchandise in yellow.
New Accounting Firm
2(...continued)
Corporation, was duly authorized to take all
actions required to implement the related
resolutions.
3 The record is unclear as to why petitioner waited 2
years to destroy the unsold ASA merchandise.
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Last modified: May 25, 2011