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Petitioners argue that respondent’s position was
unsupportable by the stipulated facts.7 Although we noted in
Terrell I that some of the stipulated facts supported the
conclusion that most of the traditional badges of fraud did not
exist, the parties stipulated many facts that could have
supported a finding of fraud. Some of these stipulated facts
were:
1. In June 1987, Janet paid $1,513.82 for repair work on
her son’s BMW with a TECO check.
2. In September 1987, Janet paid $722.90 for service work
on her son’s BMW with a TECO check.
3. On September 20, 1987, Vernon instructed TECO’s
bookkeeper to write him a TECO check in the amount of $38,867.
This check was deducted as “raw materials” on TECO’s books;
however, it was never used for the purchase of raw materials.
Vernon deposited the $38,867 check into a personal bank account
at First National Bank of Grand Saline (First National) jointly
held by Vernon and Janet. The Griffins did not include the
$38,867 in the amount reported on the Form 1099 listing the
amount of personal expenses paid for, and withdrawals made by,
Vernon out of TECO’s funds for 1987.
7 In their motion, TECO and Vernon alleged that the facts
in this case were fully stipulated. This assertion is incorrect.
The trial of this case took 4 days, we heard factual testimony
from numerous witnesses, and the trial transcript was more than
1,100 pages.
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