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(iii) Eric B. Benson
ERG issued check No. 23548 for $6,000 to Eric, dated
December 30, 1992, on which “Directors Fee - 6 months” is written
on the memo line.36 On or about February 26, 1993, Burton and
Eric submitted an application to open an account with USAA
Investment Management Co. as joint tenants (the USAA account).
The initial investment into the USAA account was the
aforementioned $6,000 check. In 1993, ERG issued twelve $1,000
checks to Eric, of which eleven were deposited into the USAA
account in 1993 and one in 1994.
(k) Townsend & Townsend Check
Townsend & Townsend, patent attorneys, issued a retainer fee
refund check for $15,000 dated January 14, 1994, payable to ERG.
Burton endorsed the check on behalf of ERG to the order of
Massachusetts Mutual Life Insurance Co. The $15,000 was credited
on January 27, 1994, as a partial repayment of loans from the
insurance company to Burton relating to insurance policy No.
4506416.37 The parties stipulated that during the years at issue
the primary beneficiary of the insurance policy was Elizabeth.
36Eric turned 19 years old on July 24, 1993. See supra note
6.
37Burton testified that loans totaling $15,000 were taken
out in 1975 and 1984 against the insurance policy and that the
funds were “borrowed from the * * * policy to be put into ERG to
meet the payroll.” He testified that none of the loan proceeds
were used for his personal benefit.
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