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entity engaged in the hauling and excavation of coal.4 During
1988, Mrs. Hamilton was employed by Heart and Soul Coal, Inc.
(H&S), where she was responsible for taking coal samples to third
parties for analysis. She was also employed by CYS and did some
work for RBE.
In 1988, Mr. Hamilton had various bank accounts with
American Fidelity Bank in Kentucky. Petitioners’ numerous bank
transactions with Fidelity during 1988 underlie the present
action. Throughout 1988, Mr. Hamilton frequently visited
Fidelity and presented Fidelity’s bank tellers with checks that
were drawn on accounts of various coal-related companies and made
payable to other coal-related companies as well as to “cash”.
Mr. Hamilton would endorse the checks and, in return, receive
large amounts of cash. Occasionally, Mr. Hamilton would, instead
of receiving cash, purchase cashier’s checks payable to himself.
In most of the transactions, Mr. Hamilton would request and
receive cash in amounts ranging between $9,000 and $9,999.5 If
4 Petitioners’ daughter, Michelle Hamilton, was the
Corporate officer of RBE during 1988, but Mr. Hamilton conceded
that he ran the business and was responsible for the day-to-day
operations.
5 Under 31 U.S.C. sec. 5313(a)(2000), Fidelity, as a
financial institution, was required to file a currency
transaction report (CTR) involving cash transactions in excess of
$10,000. It was Fidelity’s policy to prepare CTRs for customers
who frequently cashed checks for large sums of money, even if
such amounts were less than $10,000. During 1988, over 40 CTRs
were prepared involving petitioners’ transactions with Fidelity.
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Last modified: May 25, 2011