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petitioner’s attorney disavowed it as entered into without
benefit of counsel or adequate consideration. Petitioner’s
attorney argued that the Guaranty was void and repeatedly sought
its return until the time that Northwest filed suit.
Petitioner’s position throughout the Northwest litigation was
that his corporations, but not he personally, owed Northwest for
whatever ticket sales proceeds were missing.
Petitioner next points to the transfer of certain of the
funds at issue to the ANB accounts between May and July 1988 as
evidence of his agency.
Petitioner first points to the transfer of $271,836 to ANB
No. 2, which occurred in May 1988 before Northwest filed suit.
Contrary to petitioner’s position, we believe that careful
scrutiny of that transfer shows that it was made to further
petitioner’s personal interests, to the detriment of the
interests of his corporations. The record in this case
demonstrates that the May 26, 1988, transfer of $271,836 referred
to by petitioner was from P-B No. 2, a personal account of
petitioner’s, the contents of which are traceable both to the
Gerber stock transferred in 1987 from a corporate to a personal
account36 and to the proceeds of the Pan Am stock that had been
36 The Gerber stock had originally been transferred from a
corporate account to Chung No. 1, a personal account of
(continued...)
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