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purchased with corporate funds in January 1988 and initially
placed in petitioner’s FCIS account.37 The May 1988 transfer to
the ANB No. 2 trust account was effected in connection with a
proposal made to Northwest by Belofsky under which petitioner
would be released from all liability under the Guaranty and the
Interim Agreement in exchange for, inter alia, the payover to
Northwest of the proceeds in the “Gerber account”. Belofsky sent
a letter to Northwest on May 20, 1988, proposing the foregoing
terms and advising Northwest that “I am directing Mr. Han to
deposit with me the proceeds of the ‘Gerber’ account to be held
by me until appropriate documentation is furnished in accordance
with this letter”. On May 26, 1988, $271,836 was transferred
from P-B No. 2 to ANB No. 2, which had been established by
Belofsky as a client trust account.
Northwest rejected Belofsky’s offer. Nonetheless, from the
standpoint of ascertaining whether petitioner was acting as an
agent to serve a corporate purpose, we believe his actions with
(...continued)
petitioner’s, in October 1987, then sold in December 1987. The
Gerber proceeds remained in Chung No. 1 until all contents of
that account were transferred to Chung No. 3 during February
1988. On Mar. 8, 1988, $321,351 was transferred from Chung No. 3
to P-B No. 2.
37 As previously noted, the Pan Am stock was transferred
from the FCIS account to P-B No. 2 on Apr. 11, 1988, and
liquidated before the May 26, 1988, transfer of $271,836 from P-B
No. 2 to ANB No. 2.
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