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presumption of correctness with respect to $3,035.16. We hold
that $3,035 was a constructive dividend.
Use of Funds From NPI
The Bensons used proceeds from the above-listed transfers
for their personal benefit. For example, from 1993 through 1995,
Burton caused NPI to expend more than $4.6 million for his
family’s personal benefit.67 These funds were used for, inter
alia, the Bensons’ personal State and Federal income tax
liabilities, personal investments, and transfers to their three
sons. There is no indication in the record that the Bensons
intended to repay any part of these expenditures and/or transfers
67NPI made the following transfers on behalf of the Bensons:
Transfer Year Description Amount
1993 California Franchise
Tax Board $129,480.00
1993 IRS 378,000.00
1994 California Franchise
Tax Board 28,745.00
1994 IRS 135,869.00
1994 Checks payable
to Burton 200,000.00
1994 Wire transfer re secured
promissory note 1,000,000.00
1995 IRS 23,331.00
1995 Checks payable to
Burton and Elizabeth 400,000.00
1995 Burton’s Jack White & Co.
investment account 1,000,000.00
1995 Bensons’ USAA Mutual
Fund 1,000,000.00
1995 Bensons’ Insight Capital
Research & Management, Inc.
account 5,441.55
1995 Bensons’ Insight Capital
Research & Management, Inc.
account 4,860.81
1995 Checks payable to Eric, Brad,
and Mark 300,000.00
Total 4,605,727.36
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