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in 1988, coupled with his understatement of income for 1987 and
1989 as evidenced in his criminal convictions for those years,
evinces a pattern of consistent understatement and thus
constitutes evidence of fraud. Mr. Hamilton’s fraudulent intent
is further shown by his extensive dealings in cash and cashier’s
checks. During 1988 Mr. Hamilton conducted 52 separate
transactions in which he withdrew over $500,000 in cash and
cashier’s checks. Not only did Mr. Hamilton obtain this money in
cash form, he also conceded at trial that he structured most of
these transactions to intentionally avoid the Federal reporting
requirements of 31 U.S.C. sec. 5313(a). These circumstances
suggest that Mr. Hamilton dealt extensively with cash for the
purpose of avoiding any scrutiny of his finances and did so with
the intent to conceal income.
It is also clear from the record that Mr. Hamilton failed to
maintain adequate books and records with respect to the mining
activities. Mr. Hamilton maintained no books for any of the
companies in which he had an ownership or management interest.
He also did not keep any records of the amounts deposited or
received in the numerous bank transactions with Fidelity or of
any other income he received or expenses he incurred in
connection with the mining activities. His failure to keep track
of this cashflow constitutes further evidence of fraud.
Finally, Mr. Hamilton was convicted for willfully filing a
false tax return for the year at issue in violation of section
7206(1). While a conviction under section 7206(1) does not
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