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bond was written. Premiums were paid by cash, by check, in
person, or by mail. Each premium payment received was recorded
in an accounts receivable ledger that was maintained by client
name and included the date and amount of the payment and the
client’s account balance. A receipt was issued to each client
who made a bond premium payment. To assure payment, Carter
Bonding sought cosigners for the bonds and pursued litigation to
recover the unpaid fees.
Sams terminated Sullivan’s employment with Carter Bonding in
1996. On January 3, 1997, Sams sent a letter to Sullivan
demanding the return of Carter Bonding’s books and records.
Sullivan’s employment with Carter Bonding resumed in the middle
of 1999.
Carter Bonding filed Monthly Professional Bondsman Reports
with the Oklahoma Insurance Department in 1994 and 1995,
reflecting the total amount of the bond premiums that Carter
Bonding charged to its clients during each monthly reporting
period. On the reports filed with the Oklahoma Insurance
Department, Carter Bonding reported total premiums of $140,520 in
1994 and $164,885 in 1995.
Carter Bonding employed an accountant to prepare its Federal
income tax returns. The accountant reported gross receipts based
on the bank deposits of Carter Bonding. Carter Bonding reported
gross receipts of $75,565 on its 1994 Federal income tax return.
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Last modified: May 25, 2011