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petitioner and petitioner’s corporations, among other things,
agreed to pay Northwest $865,000 from ANB account Nos. 2, 3, 4,
and 5,24 with any remaining balance to become the property of
petitioner and his corporations. Pursuant thereto, Northwest
received $865,000 from ANB Nos. 2 and 5, and the remaining
balance of $5,674 in those two accounts was paid to petitioner
and his corporations. The entire balance in ANB No. 3 ($94,722
including accrued interest) and in ANB No. 425 ($43,147 including
accrued interest) became the property of petitioner and his
corporations. Northwest also acknowledged in the settlement
agreement that Belofsky held the ANB accounts solely as a
custodian pursuant to the terms of the TRO. The settlement
agreement further provided that the entire balance in the Sam Han
account (then approximately $192,000) would be assigned by
petitioner and his corporations to Northwest, as well as any
amounts remaining in Chung Nos. 1, 2, 3, and 4.26 The record does
24 As of Jan. 2, 1991, ANB No. 5 contained funds that had
been transferred to it from ANB No. 6 in February 1989. At the
time of the transfer to ABN No. 5, ANB No. 6 contained funds that
had been transferred to it from ANB No. 1. Additionally, on May
1, 1989, $500 had been transferred from ANB No. 6 to ANB No. 5.
25 As noted previously, the corporate funds that were
transferred to ANB No. 4 form no part of the $986,856 that
respondent contends is includible in petitioner’s income in 1988.
26 The source and disposition of funds in 1991 pursuant to
the settlement agreement were:
(continued...)
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