- 14 -
deposited this check into Bank of Milpitas, account No. 512-001-
300466.16 On that same day, petitioner wrote a check from this
account to GMT for $50,000 and indicated on the memo line “loan
to GMT”. The corporation’s bookkeeper made a handwritten
notation, which reads “Art [the accountant]- George put this
money out of pocket - don’t credit as income. We’re going to pay
our line of credit monthly out of this account, Yvonne” on GMT’s
bank statement for the account into which the $50,000 check was
deposited
Similarly, on or about June 28, 1991, Republic Indemnity Co.
issued GMT a check for $42,887. On July 9, 1991, petitioner
deposited this check into Bank of Milpitas, account No. 512-001-
300466. On that same day, petitioner wrote two checks from this
bank account, one for $30,000 to GMT and one for $10,000 to
Alviso. Petitioner wrote “loan” on the memo line of both checks.
This same treatment occurred with a $57,472 check to Alviso
received from Republic Indemnity Co. Petitioner also deposited
this check into Bank of Milpitas account No. 512-001-300466. On
or about June 4, 1992, petitioner wrote a check to GMT for
$45,000, noting “Loan for Ins.” on the memo line.17
16Petitioner testified that $17,000 of this money was used
to purchase truck parts from a third party, Peterbilt. The truck
parts were purchased in the name of Newark T&B.
17Petitioner testified that he was not sure whether by
depositing the Alviso check he was reimbursing himself for a loan
(continued...)
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011