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B. Embezzlement Income
Michael S., who received escort services at petitioner’s
apartments during 1989 and 1990, also engaged in certain
legitimate transactions with petitioner in 1989. Petitioner
talked him into lending her $12,000 on October 10, 1989. She
explained that the loan would finance the furnishing of the
apartment on E. 65th Street. Mr. S. reviewed the expenses of
furnishing the apartment and visited the apartment to verify that
it had been furnished.
As security for the $12,000 loan, petitioner gave Mr. S. a
letter promising him a share of a commission she would earn on
the sale of some family property, known as Haiku Plantation,
located in Hawaii. Mr. S. looked at some documents describing
the property and discussed its value with petitioner’s sister,
who, he understood, had the majority ownership in the property.
Petitioner partially repaid Mr. S. with a series of checks
totaling $3,640 written during first half of 1990.
Mr. S. also purchased a large supply of magnetic tapes from
petitioner for $10,000, which he then donated to a school. Mr.
S. obtained these materials from petitioner because he could get
a “better rate” than elsewhere. One of his checks given in
payment to petitioner for this purchase, for $3,000, was returned
unpaid.
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