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blank or to make their checks payable to petitioner. Mrs. Rutz
and Messrs. Eberli and Latter testified that petitioner told them
to pay in cash.
Petitioner also attempted to blame his fraud on his former
employee, Mr. Hu, suggesting that it was Mr. Hu who deposited all
those checks into petitioner’s bank account. Petitioner also
suggested to the customer/witnesses that they may have been
buying computer products belonging to Mr. Hu rather than
belonging to him or PAC. Petitioner’s explanations were
implausible and were an unsuccessful attempt to confuse the Court
and to divert attention from his own fraudulent conduct.
Petitioner concealed computer sales by making sure that the
sales were not reflected on PAC’s books, by having the payments
made in cash or by check made out to him personally, by
indicating that the deposits related to loan repayments when he
knew that they were for computer sales, and by carefully
concealing the facts from his accountants.
Petitioner failed to cooperate with respondent’s
investigation; he refused to answer questions during the
investigation, and he failed to respond to respondent’s formal
discovery requests in any meaningful way, even after being
ordered by the Court to respond. Petitioner’s conduct was not
innocent. He fully understood his obligation to report sales on
PAC’s books and records. Petitioner’s conduct evidences a course
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