- 12 - The illegal nature of petitioner's activities and his concealment of these illegal activities are additional badges of fraud. See United States v. Palmer, 809 F.2d 1504, 1505-1506 (11th Cir. 1987); Davis v. Commissioner, T.C. Memo. 1991-333 (embezzler who issued checks for less than $10,000 in order to avoid detection liable for fraud penalty). Petitioner went to great lengths to conceal his embezzlement activities. In order to hide his theft, petitioner caused Mrs. Millyard to write checks to accounts controlled by him or his wife in amounts less than $10,000. On three occasions he caused Mrs. Millyard to write on 1 day several checks for his benefit that totaled over $10,000. During the period April 1993 through April 1994, Mrs. Millyard withdrew substantial amounts from her trust. On the report to the bank, petitioner reported that Mrs. Millyard withdrew merely $23,500 from the trust. The bank would have been concerned had it seen that approximately $100,000 had been taken from the trust. By incorrectly reporting the amounts withdrawn from the trust, petitioner attempted to conceal his embezzlement activities. Petitioner's receipt of embezzlement income by defrauding an elderly client of her funds was the underpinning of virtually every count in the indictment against him, including bank fraud, money laundering, embezzlement, and the filing of false incomePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011