Michael G. Culver and Christine M. Culver - Page 5




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               Michael’s hobbies included hunting, fishing, and archery.              
          In 1995, Michael went on a fishing trip to Alaska.  Christine did           
          not participate in Michael’s hobbies.                                       
               During 1993 through 1995, the approximate total of the                 
          deposits into, and the withdrawals and payments out of,                     
          petitioners’ joint checking account were as follows:                        

                         Year      Deposits       Withdrawals                         
                         1993      $88,883             --                             
                         1994      92,138         $92,081                             
                         1995      94,415         97,729                              

               In September of 1996, during an audit of the financial books           
          and records of the City of Molalla, it was discovered that during           
          1991 through 1996 Christine had embezzled a total of                        
          approximately $225,000 from funds she managed as financial                  
          director for the City of Molalla.  Christine was immediately                
          terminated from her employment with the City of Molalla, and                
          State criminal charges were brought against her.                            
               On May 22, 1997, Christine pleaded guilty to charges of                
          aggravated theft, forgery, and official misconduct in connection            
          with her embezzlement from the City of Molalla.  Christine was              
          sentenced to an 18-month prison term, and Christine was ordered             
          to pay restitution of $225,000.                                             










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