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Similarly, with respect to the Pan Am stock, because we have
concluded that petitioner by mid-1988 had exercised personal
dominion and control over the assets diverted from his
corporations (and was not holding them as a mere agent of his
corporations), petitioner exercised dominion and control over the
Pan Am stock. However, the evidence adduced by respondent shows
that, unlike the Kodak stock, neither the Pan Am stock nor its
proceeds were returned to petitioner’s corporations before
yearend 1988. The Pan Am stock remained in the FCIS account from
its purchase on January 22, 1988, until April 11, 1988, when
petitioner transferred it to another personal account, P-B No. 2.
P-B No. 2 already contained substantial assets, including the
proceeds from the Gerber stock, with a net value of $273,855 on
March 31, 1988, just prior to its receipt of the Pan Am stock.
(The Gerber stock had been liquidated on December 24, 1987, for
$335,563, and the contents of the account containing the Gerber
stock proceeds, then totaling $321,351, had been transferred to
P-B No. 2 on March 9, 1988.) On May 26, 1988, petitioner
transferred $271,836 in cash from P-B No. 2 to ANB No. 2, a
custodial account that Belofsky had set up in connection with his
proposal to secure petitioner’s release from any personal
liability to Northwest. Belofsky represented to Northwest that
ANB No. 2 was being funded with the “‘Gerber’ account” proceeds.
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