- 6 - Alvarado Transactions Angel Luis Alvarado (Mr. Alvarado) sent Mr. Ortiz a $14,100 check in 1991 and a $13,000 check in 1992, both drawn on the account of Asomante Auto Sales, a company in Puerto Rico that was a customer of R&X Auto Sales. When submitted to the bank, the checks were marked with notations about advances for automobiles. After the checks were processed through Banco Popular in Puerto Rico and returned to Mr. Alvarado, the notations on the checks were changed by Mr. Alvarado to read "prestamo", the Spanish word for loan. Mr. Ortiz repaid Mr. Alvarado by sending him used cars. He retained part of the advances as his "commission". No documents were executed to formalize these advances. No interest was paid by Mr. Ortiz on the advances. Loan From Luna On May 10, 1991, Mr. Ortiz received a $20,000 bank check as a loan from Anibal Rivera Luna (Mr. Luna), who is related to Mrs. Ortiz. On May 15, 1991, petitioners purchased four lots in Marydia, Florida, as investment property. Petitioners paid $29,767.24 at the closing. Petitioners did not deposit an amount of $20,000 into their personal bank account or the business bank account in May 1991. Petitioners did not withdraw the amount of $29,767.24 from either account in May 1991. Income Tax Returns Mr. Ortiz provided his accountant and return preparer, Paul Solano (Mr. Solano), with information and data pertaining to R&XPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011