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transactions. Although the secretaries entered the deposits and
disbursements onto the peg board, Joseph reviewed all the
entries. We found Ms. Saunier’s testimony as to Joseph’s
extensive involvement with and awareness of Monterey’s finances
to be consistent and credible.
Joseph testified that he never balanced or reviewed
Monterey’s bank statements (except when preparing the Schedules C
and then only to determine the amount of bank charges) and,
therefore, was unaware of how much money had been deposited into
the Monterey account. That testimony is contradicted by
petitioners’ statements on brief: (1) “Mr. DelVecchio each month
reviewed his bank statements, and when balances in the business
account exceeded the amounts needed to operate the business,
Petitioner transferred some of the excess funds to his other
account”, and (2) “Although Mr. DelVecchio was obviously aware
that he was receiving more gross receipts than previous years, it
is obvious with his lack of accounting experience that he
operated primarily based on his bank balances each month when he
received his bank statements.”
Joseph testified that he did not use the peg board to
prepare the Schedules C. That testimony is false, as shown by
our analysis supra section II.C.3.
Joseph’s lack of credibility is evidence of his fraudulent
intent.
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