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venturers and their parent JCC.
Pursuant to the settlement agreement, West Mill conveyed all
of its rights in the Towne Lake project to First Hotel Investment
Corp., an affiliate of Westinghouse. Additionally, West Mill,
petitioner, JCC, LDJ Construction Co., and LDJ Development Co.
released any and all claims against Westinghouse. In return,
Westinghouse released any and all claims, agreed not to foreclose
on the Towne Lake property, and paid $1,050,000 jointly to West
Mill, petitioner, JCC, LDJ Construction Co., and LDJ Development
Co. The agreement did not specify to whom the $1,050,000 would
be distributed.
On December 5, 1991, the $1,050,000 payment was received by
JCC and on December 6, 1991, was deposited into a bank account
opened by JCC to receive the $1,050,000 payment. Petitioner
directed JCC to pay certain creditors of West Mill from the bank
account. Of the $1,050,000 received from Westinghouse, JCC paid
$269,000 to the Johnson Corp. for management fees it earned in
conjunction with West Mill, and $492,442 to F. Gardner Parker,
Trustee.
On January 9, 1992, petitioner submitted a request to JCC
for payment to him of the remainder of the settlement fund
($286,737.27). Petitioner’s payment request contained no
explanation or reason for the requested transfer. On or about
January 10, 1992, petitioner deposited the $286,737.27 payment
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