Steven K. Han - Page 35





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          to those corporations after January 1, 1988, and then to the                
          amounts owed for ticket stock issued before that date.  Belofsky            
          further advised Northwest that he would have petitioner deposit             
          with Belofsky the proceeds of the “‘Gerber’ account”, which he              
          would then hold until he received appropriate documentation from            
          Northwest.                                                                  
               At the time this letter was written, the Gerber stock                  
          proceeds, as well as numerous other assets, including the Pan Am            
          stock, had been transferred to one of petitioner’s personal                 
          accounts, P.B. No. 2.15  On May 26, 1988, petitioner transferred            
          $271,836 in cash from P-B No. 2 to account No. 14196956 (ANB No.            
          2), a client trust account with American National Bank (American            
          National), which Belofsky had established for petitioner.                   
               Northwest did not accept Belofsky’s proposal.                          
          Northwest’s Litigation Against Petitioner and His Corporations              
               On June 16, 1988, Northwest advised Belofsky that                      
          Northwest’s analysis of petitioner’s corporations’ consolidator             
          activities showed that petitioner and his corporations owed                 

               15 As previously noted, the Gerber stock was transferred by            
          petitioner from one of the corporate accounts (Merrill Lynch No.            
          1) to petitioner’s personal account, Chung No. 1, on Oct. 13,               
          1987.  The stock was sold for $335,563 on Dec. 24, 1987, and the            
          proceeds were held in Chung No. 1 until Feb. 24, 1988, when all             
          assets in that account were transferred to another personal                 
          account of petitioner’s, Chung No. 3.  On Mar. 9, 1988,                     
          petitioner transferred the assets in Chung No. 3 to another                 
          personal account, P.B. No. 2.                                               





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