John P. Trowbridge, Life Center Houston Business Trust, John P. Trowbridge, Trustee, and Life Choices Business Trust, John P. Trowbridge, Trustee - Page 19

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               Respondent bolstered his documentary evidence with witness             
          testimony.  Kathryn Hill, a former employee of Dr. Trowbridge’s,            
          testified that she had prepared the practice summaries each day             
          as part of her duties and that she had derived the month-to-date            
          and year-to-date collections listed thereon from the daily cash             
          analysis reports prepared by other personnel.  Ms. Hill further             
          testified that, as sometimes reflected in her handwritten                   
          notations on the daily cash analysis reports, she had transferred           
          cash receipts directly to Dr. Trowbridge and had used patients’             
          checks to pay third party creditors of the medical practice                 
          whenever Dr. Trowbridge so requested, rather than depositing such           
          amounts in any of the medical practice bank accounts.  Ms. Hill’s           
          testimony is consistent with that of William Williams, an IRS               
          agent who testified that, in his review of the medical practice             
          bank account statements, he had been unable to find deposits                
          corresponding to numerous checks and cash receipts recorded in              
          the daily cash analysis reports.                                            
               Dr. Trowbridge’s own daily records establish the gross                 
          receipts of the medical practice in 1996, and the testimony of              
          Ms. Hill and Mr. Williams satisfactorily explains the large                 
          discrepancy between that amount and the aggregate bank deposits             
          on which respondent based the initial 1996 deficiency.                      


               15(...continued)                                                       
          Oct. 28, 1996, that we believe respondent overlooked.                       




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