- 5 -
promoters returned to Randy Hall cash equal to the amount of the
checks less the commission. Randy Hall bought the invoices to
generate documentation to support an inflated cost of goods sold
deduction reported on its tax returns.1 None of the yarn
referenced in the false invoices was ever delivered to Randy
Hall.
Randy Hall issued checks to the false invoice sellers for 35
false invoices. Randy Hall required that all of these checks be
signed by two of its shareholders. The date and amount of each
of the 35 false invoices is as follows:
Invoice Date Invoice Amount
Oct. 6, 1980 $13,328
Oct. 8, 1980 12,826
Oct. 9, 1980 10,472
Oct. 10, 1980 14,111
Oct. 15, 1980 8,119
Nov. 5, 1980 17,494
Nov. 6, 1980 6,098
Nov. 7, 1980 8,033
Nov. 10, 1980 10,151
Nov. 12, 1980 16,190
Nov. 14, 1980 13,619
Jan. 2, 1981 11,866
Jan. 5, 1981 14,345
Jan. 6, 1981 8,340
Jan. 8, 1981 15,406
Jan. 9, 1981 13,523
193,922 ($1 rounding error)
Dec. 8, 1982 $15,988
Dec. 10, 1982 13,812
Dec. 14, 1982 16,403
1 Although cost of goods sold is not actually a “deduction”,
the parties and many of the exhibits in evidence sometimes refer
to it as such. We do the same.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011