- 17 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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