Steven K. Han - Page 82





                                       - 73 -                                         

               Of singular importance, we disagree with respondent’s                  
          contention that the funds in the ANB accounts were used to                  
          satisfy petitioner’s personal liability to Northwest.  We do not            
          believe that respondent, who has the burden of proof, has shown             
          by a preponderance of the evidence that the ANB funds were used             
          to satisfy petitioner’s, as opposed to his corporations’,                   
          liabilities to the airline.  Northwest’s complaint was filed, and           
          the TRO obtained, against petitioner and his corporations.                  
          Northwest at all times pursued its complaint against the                    
          foregoing defendants44 and likewise entered the settlement                  
          agreement with both petitioner and his corporations.  The                   
          corporations, not petitioner, had operated as consolidators for             
          Northwest; i.e., Northwest’s ticket stock had been provided to              
          and sold by the corporations.  Thus, petitioner’s corporations              
          were primarily liable to Northwest for the ticket stock or the              
          proceeds from its sale.  In our view, this is why Northwest, in             
          addition to filing suit against both petitioner and his                     
          corporations, also had sought petitioner’s personal guaranty of             
          his corporations’ indebtedness to Northwest, refused to surrender           
          the Guaranty, and based one count of the complaint on it.                   



               44 Default judgments were entered against NY NA Tours, CA NA           
          Tours, and SF NA Tours, but petitioner’s other corporations                 
          remained defendants until settlement.                                       





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