- 15 - b. Dealing in Cash Throughout the 4 years at issue, petitioners made numerous and substantial cash expenditures for, among other things, real property, new luxury automobiles, payments on credit cards, mortgages, and a host of other personal items. Petitioners kept large amounts of cash in both their residence and at Moore’s Auto. Petitioners’ extensive use of cash supports a reasonable inference that petitioners were knowingly and willfully attempting to conceal taxable income. See Clayton v. Commissioner, supra at 647. c. Participation in Illegal Activity Lesely pleaded guilty to one count of engaging in illegal gambling from 1987 through June 1994 under 18 U.S.C. section 1955. While Aljournia might not have participated in illegal numbers operations, the evidence indicates that she knew or should have known of Lesely’s involvement. During the 1994 raid, North Carolina law enforcement officers found both lottery tickets and large amounts of currency in petitioners’ residence.4 Moreover, Aljournia should have known that the cash 4 In her testimony, Aljournia offered inconsistent and implausible explanations, conceding at one point that lottery tickets were found in her residence but contending they were planted there by the law enforcement officials, and at another point contending, contrary to the evidence, that only one lottery ticket was found. With regard to the $7,452 in currency found in her residence, Aljournia argued that “I should be able to have a few pennies around my house”, contending unconvincingly that the (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011