- 5 - date, the bank and PEC agreed to a final maturity date sometime in 1988. From 1986 to 1989, there was a substantial decrease in oil production from the wells that PEC had purchased. Additionally, the posted crude oil prices dropped from $28 per barrel in July 1985 to $14.85 per barrel in July 1988. PEC reported gross sales and net losses for tax purposes as follows: Year Ending Gross Oil & June 30 Gas Income Net Loss 1986 $1,649,035 $36,219 1987 557,892 653,955 1988 642,479 305,313 1989 177,763 85,719 Theft Loss On November 11, 1985, petitioner and Cisneros suspected that Wheeler had misappropriated about $100,000 of PEC's funds which was supposed to be used to pay a commission. In addition, petitioner believed that Wheeler cashed the blank checks petitioner gave him, and he misappropriated these funds for his personal use. Consequently, on November 12, 1985, petitioner changed the locks to PEC's office and informed Wheeler that he was not to enter the office. In April 1986, petitioner and Cisneros met with representatives from the Texas Rangers--the law enforcement division for the State of Texas. Petitioner and CisnerosPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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