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of Dole each agreed to the closing yearly summary sheets for the
years 1985 to 1992 showing overall profits or losses for SCP, the
Canelos growers, and petitioner.
Mr. Maldonado and petitioner's other employees provided
information to SCP and Mr. Canelos regarding petitioner's day-to-
day distribution function under the SCP contract. SCP's
employees and representatives in Mexico obtained information
directly from the Canelos growers regarding their day-to-day
farming operations under the SCP contract. At the end of each
growing season between 1989 and 1992, Mr. Maldonado reviewed data
on petitioner's losses, and he provided Mr. Canelos with that
data, thereby making Mr. Canelos aware that petitioner was losing
money under the SCP contract.
Petitioner commingled funds advanced by SCP, received from
produce sales, and lent by commercial banks, thereby making it
impossible to trace funds from SCP to a specific grower.
Petitioner's records do not show advances, including working
capital and liquidation advances, to specific growers.
Dole generally used a per box commission rate for its
distribution operations. Dole's normal commission charge during
the years in issue was 55 cents per box. All of petitioner's
contracts with Dole provided for a commission rate on the basis
of boxes of produce. Although some of petitioner's competitors
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