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Five. Respondent has also proven by clear and convincing
evidence that Ballard intended to evade taxes known to be owing
on that income by conduct designed to conceal, mislead, or
otherwise prevent the collection of such taxes. There are
several indicia of Ballard's fraud with intent to evade tax.
Although Ballard's educational background is not in the
record, he was a sophisticated and experienced businessman who
held high executive positions at Prudential, and later at Goldman
Sachs. As such, he obviously understood and fully appreciated
his obligation to report income correctly and to pay taxes on
that income. Nevertheless, he disregarded this obligation by
participating in various schemes to collect kickbacks from the
Five and misdirect income through Kanter's maze of entities.
As our findings show, Ballard omitted income received from
transactions with the Five during the years 1978 through 1982,
1984, and 1987 through 1989 in the total amount of $3,054,093.
Additionally, for the years 1983, 1985, and 1986, years not
before us here, he omitted $961,161.
Ballard used IRA and later TMT as a nominee to receive and
hold the kickback payments he received for his services.
Ballard did not cooperate with respondent's agents at
various stages of their investigation of his tax returns. He
withheld relevant documents and information involving
transactions with the Five.
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