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involved “mudjacking”, which Tony describes as “lifting concrete
back to its original position”.
About 1972, Tony’s brother, Robert Zidar (Robert), became
Tony’s partner, and they incorporated CRA as Concrete Raising
Corp. (CRC). Tony and Robert each owned an equal number of CRC
shares. The accounting firm of Conley, McDonald & Sprague
performed bookkeeping, record maintenance, and other accounting
services for CRC.
Tony and Robert also entered into several commercial real
estate joint ventures (the joint ventures), which generally
involved purchasing and renovating buildings for lease to
tenants. Tony and Robert financed these joint ventures partly by
using CRC’s financial clout to obtain loans.
CRC made advances to Tony and Robert for, among other
things, airplane tickets, furniture, personal expenses, and
expenses associated with the joint ventures. All shareholder
advances were required to be repaid, and CRC maintained
shareholder accounts for both Tony and Robert. An employee from
Conley, McDonald & Sprague regularly visited CRC to review and
record all shareholder advances in the appropriate accounts. CRC
issued Tony and Robert monthly, quarterly, and annual statements
showing the balances on their respective shareholder accounts.
As of October 1992, Tony’s outstanding balance on his CRC
shareholder account was $116,831.
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Last modified: May 25, 2011