Zabetti A. Pappas - Page 17




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              Petitioner continued to rent the apartment on E. 65th Street           
          for business purposes during 1990.  She incurred rental expenses            
          of $13,983 and a utility charge of $790 in that year with respect           
          to that apartment.                                                          
               During 1990, petitioner continued to live in the apartment             
          on E. 77th Street.                                                          
               Petitioner incurred $100 for messenger expenses in 1990 and            
          $126.60 in shipping and mailing expenses.  She incurred business            
          expenses of $600 for telephone service in that year.  She also              
          paid monthly services charges totaling $220 during 1990 on the              
          Real Services’ checking account.  In the same year she paid legal           
          fees of $1,650 in defending against charges that she was using              
          the apartment on E. 77th Street for an illegal purpose.  She paid           
          an additional $400 to an attorney in connection with obtaining a            
          lease.                                                                      
               In 1990, petitioner also paid $150 to her brother for                  
          appraisal fees concerning some property inherited from their                
          father.                                                                     
          4.  Petitioner’s Interest Expenses                                          
               Petitioner frequently borrowed money.  In addition to the              
          instances already cited, Tammy M., one of the women who provided            
          escort services to customers pursuant to petitioner’s                       
          arrangements, lent petitioner $6,000 in 1990.  Petitioner wrote             
          checks in repayment totaling at least $6,070.  Many of                      






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