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Certain loan payments with respect to the computer were not
made, and Central Trust threatened foreclosure on the computer.
On December 5, 1980, a $90,000 check payable to Robert was drawn
on the Cocoa Trusts Escrow Fund. See supra item G. Cocoa Trusts.
On December 9, 1980, a $92,000 deposit was made to Associates'
bank account in Central Trust. Immediately before this deposit,
this bank account had a balance of $569.52. Monica thereupon
drew a check on Associates' Central Trust account, dated December
9, 1980, in the amount of $89,215.22, to Central Trust, to pay in
full the remaining balance on the Robert Iles, et al., loan that
had been taken out to finance the computer, etc., purchase.
Petitioners' primary motive to repay the loan was to remove the
security interest Central Trust had in assets in their personal
residence and business office. The $89,215.22 check cleared
Associates' Central Trust account on December 10, 1980. After a
$74.10 charge to the account, this left a balance of $3,280.20.
After that payment, Central Trust's security interest terminated.
The $90,000 Cocoa Trusts Escrow Fund withdrawal was used by
petitioners to pay the debt from the computer, etc., purchase.
I. Lincoln American Securities
In 1981, Robert began to search for a broker-dealership he
could buy in order to facilitate sales of investment products and
in order to comply with applicable securities laws. Robert also
wanted an entity which could act as surety on his appeal bonds in
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