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26. On June 27, 1989, a $1,278.28 TECO check was used to
make a mortgage payment on Vernon’s sister’s house. This check
was deducted as a “miscellaneous” business expense on TECO’s
books.
27. On September 5, 1989, Vernon purchased a $12,015.70
Harley-Davidson “Fatboy” with TECO funds. This motorcycle was
used exclusively by Vernon and/or his immediate family.
28. In 1989 TECO purchased a 1989 Suburban. TECO later
sold the Suburban to Bobby Moses. Janet deposited the check from
Mr. Moses into a personal bank account she jointly held with
Vernon.
29. During the years in issue, TECO purchased a $19,817 ski
boat. This payment was deducted as a “miscellaneous” business
expense on TECO’s books. The boat was titled and registered in
Vernon’s name.
30. The TECO checks solely written to Vernon during 1987,
1988, and 1989 totaled $38,867, $21,900, and $42,300,
respectively. These amounts do not include the numerous other
personal expenses paid for by TECO. Janet and Vernon, however,
caused TECO to issue Vernon Forms 1099 listing only $5,250,
$18,300, and $68,000 for 1987, 1988, and 1989, respectively.
Respondent’s burden of proving fraud by clear and convincing
evidence is a heavy burden. Although some of the evidence in
this case raised our suspicion about the possibility of fraud,
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