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States, 577 F.2d at 1215, and been quite detrimental to
petitioner’s corporations, which would have lost a guarantor on
acknowledged debts exceeding $8 million. Petitioner’s contention
that the transfer of the $271,836 to ANB No. 2 in May 1988
(before Northwest filed suit) indicates that he was acting on
behalf of his corporations is untenable. Instead, this transfer
demonstrates that petitioner was exercising personal dominion and
control over the funds.
Petitioner also argues an agency theory with respect to the
remaining transfers of funds to the ANB accounts, all of which
occurred after Northwest filed suit. Specifically, petitioner
contends that his intent to act as an agent is shown because he
“funded the Belofsky trust accounts”. Petitioner argues that he
“willingly” relinquished control over the disputed funds to
Belofsky to be held by him in the ANB accounts as trustee, and
that once in the ANB accounts the funds were used in an effort
“to make a deal to keep IL NA Tours in business”. The argument
concludes: “Petitioner used these funds as an agent of IL NA
Tours to keep it in business. When that was no longer possible,
he used these funds to settle its debts.”
Petitioner’s argument is an attempt to make a virtue out of
a necessity. Aside from the ANB No. 2 transfer in May,
petitioner did not “willingly” transfer anything to the remaining
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