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information relating to the sales reflected by the invoices in
Cal Ben’s sales journal (reported sales).
During at least 1985, 1986, 1987, and 1988, however,
petitioner did not forward to Cal Ben's bookkeepers all of Cal
Ben's sales invoices. As a result, sales associated with
invoices not forwarded to Cal Ben's bookkeepers were not
reflected as sales in Cal Ben’s sales journal (unreported sales).
Cal Ben's sales invoices were not identified by number, and
therefore unreported sales could not be easily detected and
identified.
Petitioner generally opened mail containing payments
received from Cal Ben's customers. Payments received relating to
reported sales were deposited into Cal Ben’s bank accounts at Bay
Bank of Commerce. With regard, however, to payments received
relating to unreported sales, petitioner or David Karp would
prepare bank deposit slips and would deposit the payments into
the Lloyds/Sanwa account.
Petitioners were aware of the existence of the Lloyds/Sanwa
account, and they were aware that unreported sales were not
recorded in Cal Ben’s sales journal.
During 1985 through 1988, payments received on sales of Cal
Ben's soap products were deposited into the above three bank
accounts in the following amounts:
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Last modified: May 25, 2011