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1, and it belonged to him personally. Petitioner transferred the
Gerber stock to hide it from a margin call.
While in Chung No. 1, the Gerber stock was sold on December
24, 1987, for $335,563. Assets purchased with the Gerber stock
proceeds were transferred from Chung No. 1 on February 16 and 24,
1988, to another account that petitioner had directed Chung to
open at Prudential-Bache, account No. ATY 065408 (Chung No. 38).
Assets in Chung No. 3 were transferred to an account in
petitioner’s name, account No. ATY 066749 at Prudential-Bache (P-
B No. 2) on March 9, 1988. Petitioner was actively buying and
selling securities in P-B No. 2 during March through May 1988.
The net balance in P-B No. 2 as of March 31, 1988, was $273,855.
The net balance as of April 30, 1988, was $305,642. During 1988,
petitioner also used funds in P-B No. 2 to pay personal VISA
charges totaling $1,535. On May 26, 1988, $271,836, which
petitioner’s attorney represented to be the Gerber stock
proceeds, was transferred from P-B No. 2 to a client trust
account established by petitioner’s attorney in connection with a
proposal by petitioner to secure a release from all personal
8 As with the other Chung accounts, although Chung No. 3 was
opened under Chung’s name and Social Security number, Chung did
not have an ownership interest therein but instead served only as
petitioner’s nominee. Petitioner owned Chung No. 3 personally.
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