Ella Freidus - Page 23

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          The funds were then disbursed per petitioner's instructions to               
          various third parties, including petitioner's nominee                        
          corporations.  Assets in the Pierpont Account would be difficult             
          to trace to petitioner because the account was held under the                
          identification number of Burns' law firm.  We agree with Burns'              
          testimony at trial that the Pierpont Account effectively hid                 
          petitioner's assets from potential creditors, including                      
               Petitioner asserts that a purpose of the Pierpont Account               
          was to protect petitioner's assets from the consequences of                  
          voluntarily giving Mr. Freidus blank signed checks drawn upon her            
          corporate bank accounts.  The record, however, shows behavior                
          inconsistent with petitioner's alleged purpose.  Petitioner                  
          testified that she knew what checks were being written and what              
          they were used for.  Petitioner knew that Mr. Freidus was using              
          the checks to make investments on her behalf.  Petitioner hoped              
          that Mr. Freidus would make good investments and earn profits.               
          Petitioner would often discuss potential real estate investments             
          with Mr. Freidus or Burns.  If petitioner approved of a                      
          transaction, she signed all necessary documents.  Petitioner knew            
          of Mr. Freidus' investment in horses, but she usually left the               
          investment decisions to him.  If petitioner truly needed                     
          protection, she could easily have canceled the checks or closed              
          the corporate accounts.  She certainly would not have given Mr.              

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