- 9 -
Sethco then remitted the $300,000 to DDC as partial payment
on Sethco’s loan from DDC. Sethco continued to use this property
as its place of business.
Between 1992 and 2001 several loan transactions occurred
among petitioner, MCU, DDC, and Sethco. From 1992 through 1998,
MCU’s yearend financial statements reflected “Loans from
Stockholder” with balances ranging from $414,200 to $705,200.
From 1993 through 1998, MCU’s yearend financial statements
reflected “Notes Receivable--DDC” with balances ranging from
$33,150 to $536,947. From 1995 through 1998, MCU’s yearend
financial statements reflected “Notes Receivable--Sethco” with
balances ranging from $47,000 to $235,336.
DDC’s 1993 through 1998 annual financial statements
reflected notes payable to the limited partner in the total
amount of $310,000. DDC’s 1997 and 1998 annual financial
statements reflected notes receivable from Sethco in the total
amounts of $319,617 and $321,843, respectively. Sethco’s 2001
bankruptcy petition reflected an unsecured nonpriority debt to
DDC in the amount of $1,385,641. In addition, the bankruptcy
petition reflects that Sethco made a $300,000 payment to DDC on
May 4, 2001.
On December 22, 1993, Mary Catherine, Mr. Pierce, and
petitioner filed a complaint in the Connecticut Superior Court
against their accountants Alec R. Bobrow, David S. Bobrow, Alan
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011