Zabetti A. Pappas - Page 11

                                       - 11 -                                         
               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           

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011