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check to Systems as a transfer of funds, and two checks
totaling $91,960 to Heritage Financial for sales commissions
and legal fees associated with the private placement of RIC
stock. RIC transferred an additional $100,000 to Systems by
debit memorandum and Systems transferred $20,000 to RIC. RIC
also transferred to Systems $331,092 by means of seven debit
memoranda. RIC closed its checking account with Maryland
National Bank and transferred the remaining balance of the
account, $5,086.80, to Systems by debit memorandum on or about
December 10, 1984. RIC transferred a net of $426,178.80 to
Systems from its Maryland National Bank checking account
($100,000 + 10,000 - 20,000 + 331,092 + 5,086.80).
On or about July 10, 1984, RIC opened a checking account
with McLachlen National Bank. RIC did not write any checks on
the account. RIC closed the account and transferred the
remaining balance, $205,137.20, to Systems on August 24, 1984.
RIC transferred $631,316 to Systems from its two checking
accounts ($426,178.80 (Maryland National Account) + $205,137.20
(McLachlen National Account)).
Neither IRC nor RIC performed educational videodisc research
or development activities through its own employees. For that
matter, neither S corporation had any employees. IRC and RIC did
not prepare any written marketing or business plans. Neither IRC
nor RIC held corporate board meetings, owned physical assets,
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Last modified: May 25, 2011