Dwight L. McKenna and Beverly S. McKenna - Page 10

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            He also deposited 30 bank checks with Howard, Weil, Labouisse,                              
            Friedrichs, Inc., another investment company, during 1987 and                               
            1988.  In 1988 petitioner also deposited two First Federal bank                             
            checks with Trans American, and one bank check with New York Life                           
            Insurance Company.  The proceeds from the bank checks were used                             
            by the investment companies to buy tax free bonds and stocks.                               
            Petitioner's Cashing of Checks at Circle Food Store                                         
                  Betty Hebert was employed by Circle Food Store in 1987 and                            
            1988.  In 1988, she was the financial manager.                                              
                  During 1987 and 1988, as well as other years, Circle Food                             
            Store offered a check cashing service.  It would charge a fee to                            
            cash a check.  The fee would range from 75 cents to $3.50,                                  
            depending upon the amount of the check being cashed.  Once Circle                           
            Food Store cashed the person's check, it would deposit that check                           
            into its own bank account.                                                                  
                  During 1987 petitioner cashed 135 income checks at Circle                             
            Food Store which were written by attorneys or other third                                   
            parties.  The total amount of these checks was $85,493.  During                             
            1988 petitioner cashed 63 third party checks at Circle Food                                 
            Store.  The total amount of these checks was $30,629.50.                                    
                  During 1987 and 1988, as well as other years, Circle Food                             
            Store had an arrangement with attorney Louis Gerdes by which his                            
            checks could be cashed at Circle Food Store.  During 1987 and                               








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