- 30 -
To effect compliance with the TRO, Hasman and Belofsky
agreed that Belofsky, as sole trustee, would hold in client trust
accounts those funds that Northwest discovered had been diverted
from petitioner’s corporations’ accounts. Consequently, at
various times, in addition to ANB No. 2 (which contained the
proceeds from the sale of the Gerber stock), see supra pp. 25-26,
Belofsky established other client trust accounts at American
National to comply with the TRO. Those client trust accounts
included account No. 80082106 (ANB No. 1), account No. 14199580
(ANB No. 3), account No. 14199939 (ANB No. 4), account No.
322447700 (ANB No. 5), and account No. 901679 (ANB No. 6)
(collectively the ANB accounts).18 Belofsky used petitioner’s
Social Security number for the ANB accounts during their
existence.19 Belofsky acted at all times in a custodial capacity
with respect to the ANB accounts.
On June 24, 1988, with Hasman’s authorization, Belofsky
transferred $445,596, representing the proceeds of the sale of
18 The record indicates that other ANB accounts were
maintained to which petitioner’s or petitioner’s corporations’
funds may have been deposited directly or indirectly. However,
the record does not provide sufficient information relating to
those accounts to enable us to make further findings of fact with
respect to them. Accordingly, we do not address those accounts.
19 Petitioner received various backup withholding tax
credits with respect to the ANB accounts in his name during 1989,
1990, and 1991.
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