Terrell Equipment Company, Inc., et al. - Page 9




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          totaling $1,779.05 for the purchase of luggage, briefcases, and             
          wallets.  These checks were deducted as a “miscellaneous”,                  
          “office supplies”, “advertising”, or “trade show” expenses on               
          TECO’s books.                                                               
               19. In 1988, Vernon paid for a weight loss program he                  
          participated in with two TECO checks.                                       
               20. On their 1988 joint Federal income tax return, the                 
          Griffins claimed a mortgage interest deduction of $30,367 that              
          they did not pay in 1988.                                                   
               21. On March 17, 1989, Vernon received a company check for             
          $39,000.  This check was deducted as “raw materials” on TECO’s              
          books, but it never was used to purchase raw materials.  Vernon             
          deposited the $39,000 check into his Southside Bank account.                
               22. On March 20, 1989, Vernon wrote a $36,000 check from               
          his Southside Bank account to the TECO pension plan.  This check            
          was dated December 19, 1988.                                                
               23. On March 24, 1989, Vernon received a $2,500 check from             
          TECO.  This check was deducted as “shop supplies” on TECO’s                 
          books.                                                                      
               24. On April 28, 1989, Vernon and Janet purchased a motor              
          home and made a $12,000 downpayment with a TECO check.                      
               25. On June 30, 1989, Vernon received a check for $800 from            
          TECO.  This check was deducted as a “miscellaneous” business                
          expense on TECO’s books.                                                    






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