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During 1990 through 1994, the Zamzams maintained personal
accounts, and ZMDI maintained its corporate account, at Grundy
National Bank. The Zamzams also maintained brokerage accounts
with Robert Thomas Securities and J.C. Bradford and Company.
During 1990 and 1991, the Zamzams transferred $1,900,000 from
their personal checking account to foreign banks, and, during
1995, $2,228,968 from their U.S. brokerage accounts to accounts
in Switzerland.
Dr. Zamzam was a licensed physician, and an employee,
president, sole director, and sole shareholder of ZMDI. Mrs.
Zamzam was ZMDI’s office manager. ZMDI paid salaries to Dr. and
Mrs. Zamzam. In 1990 through 1994, ZMDI did not authorize
payments in excess of Dr. Zamzam’s salary, and the Zamzams’ Forms
W-2, personal tax returns, and ZMDI’s corporate tax returns, did
not reflect any payments made by ZMDI in excess of the Zamzams’
salaries.
Mrs. Zamzam was primarily responsible for ZMDI’s daily
receipts journals and bank deposits. The accountant who prepared
ZMDI’s corporate tax returns advised the Zamzams to deposit all
corporate receipts into the corporate account to ensure that all
corporate income was properly reported. The Zamzams diverted to
their personal account, corporate receipts totaling $181,783,
$187,914, $148,260, $90,295, and $60,317 during 1990 through
1994, respectively. ZMDI did not report as income corporate
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Last modified: May 25, 2011