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evidence in the record, such as a check issued on Sanwa or a bank
statement from the Sanwa account, that shows that petitioner
withdrew $50,000 from Sanwa. Petitioner produced bank statements
from the Sanwa account for only the months of May, June, and
December 1990. The deposit was made on July 23, 1990, and did
not coincide with the payment of tuition by guaranteed students
during that year. Tuition for the summer 1991 course was
generally paid in May 1990. Petitioner has not explained his
delay in establishing the alleged trust account. The logical
conclusion is that petitioner used his own money to open the
World Savings account rather than refundable tuition from the
LECC's 1990 review courses, as he contends.
There is no documentary support of petitioner’s or the
guaranteed students’ alleged intent to create a trust account or
escrow arrangement. Petitioner failed to deposit the tuition
into the World Savings account; petitioner’s oral testimony that
he intended to create a trust is not credible. Petitioner’s
right to retain the tuition from the guaranteed courses was in
some respects contingent on the students' performance on the
California bar examination. However, the possibility that
petitioner might have had to pay failing students refunds is not
a substantial restriction on his use of the tuition. The World
Savings account was not a trust account that created a
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