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respectively. Joseph has failed to explain how he could deposit
into his personal bank account each year substantially more money
from Monterey than he reported as Monterey’s net profit and
disregard that fact when figuring such net profit.
5. Joseph’s Lack of Credibility
Joseph was not a credible witness.
Some of Joseph’s testimony was as follows: He was not
involved in the financial operations of his business, and he had
no idea how much money Monterey earned in 1987 and 1988. He did
not see the incoming checks, but, rather, the drivers turned in
all checks received from customers directly to the secretaries,
and the secretaries opened the mail and removed any checks before
turning the mail over to Joseph. He had no knowledge as to the
bookkeeping method the secretaries used to record the checks. He
signed the checks that were sent out to pay bills, but he did not
keep track of total expenditures.
Shirley Saunier (Ms. Saunier) was employed as a secretary at
Monterey from approximately January or February 1987 until
shortly before Thanksgiving of 1987. Ms. Saunier testified as
follows: Joseph maintained strict control over Monterey’s
finances. Joseph received all incoming checks from the drivers
directly and opened all the mail and removed the incoming checks.
Joseph scrutinized all outgoing checks and accompanying invoices
and frequently questioned the secretaries regarding these
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