Dwight L. McKenna and Beverly S. McKenna - Page 9

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                  On some occasions petitioner would deposit a group of third                           
            party checks.  He would tell Ms. Clark, and she would write his                             
            account number on the checks.  He never had a deposit slip, so                              
            Ms. Clark prepared one for him.  The deposits of these third                                
            party checks into his checking account were reflected in his bank                           
            account and in his bank statements.                                                         
                  Except for petitioner, Ms. Hattier never handled a                                    
            transaction for any other customer or board member where she                                
            accepted third party checks, deposited them into the First                                  
            Federal suspense account, and then issued a First Federal bank                              
            check in the total amount of the third party checks.                                        
            Petitioner's Use of First Federal Bank Checks                                               
                  All of the First Federal bank checks were made payable to                             
            petitioner, and none of them were reflected in his First Federal                            
            checking account.                                                                           
                  In 1987, petitioner procured at least 52 bank checks from                             
            First Federal which were made payable to him in the total amount                            
            of $189,211.97.                                                                             
                  In 1988, petitioner procured at least 29 bank checks from                             
            First Federal which were made payable to him in the total amount                            
            of $116,646.73.                                                                             
                  Petitioner endorsed each First Federal bank check.  Of the                            
            First Federal bank checks, he deposited 39 of them with                                     
            Shearson/American Express for investments during 1987 and 1988.                             






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