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Despite her intensifying illness, in 1984, Doris Kropp organized
a corporation to hold certain tracts of the undeveloped land and
gave stock in that corporation (corporate stock) equally to Paul
and Mrs. Harte and their immediate families.
In 1985 and 1986, Paul rendered some services to Doris Kropp
with regard to her financial affairs. In 1986, Paul arranged the
sale of one of the tracts of undeveloped land, but the buyer
decided not to purchase the property. In 1991, Doris Kropp sold
that remaining tract of undeveloped land. Paul was not involved
in the sale of that property. Instead, Mrs. Harte’s husband met
with a real estate agent and the buyer for Doris Kropp. Around
this time, Doris Kropp also sold one of the health/sports
facilities to Paul and the other to Mrs. Harte. In 1994, Paul
worked extensively, on a volunteer basis, with children. He
managed two soccer teams and chaired the Spokane Junior Soccer
Committee.
From 1985 to 1994, Paul continued to withdraw funds from the
joint account, including $81,000 in 1994. Paul and Lorna
continued to use the withdrawn funds for their household’s living
and medical expenses and in addition used the withdrawn funds for
the education of their children at a private school. It is
unclear from the record how Paul treated the withdrawn funds on
his 1985 through 1993 tax returns or whether he filed tax returns
at all for those years. Paul did not file a tax return for
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Last modified: May 25, 2011