James Edward and Brenda Dianne Starkovich - Page 5

                                        - 4 -                                         
          A.   Unreported Income                                                      
               Petitioner contends that he was involved in a fraudulent               
          kickback scheme involving Ione Morgan (Ms. Morgan), who works as            
          a live-in manager for Golden Leaf; her husband, Bob Morgan; and             
          his brother, Chester Morgan.  Petitioner alleges that he would              
          receive a check from Golden Leaf in an amount greater than what             
          he was owed for services he performed.  In exchange for receiving           
          the contracting job, petitioner would cash that check and remit             
          the overage to Bob Morgan.  Petitioner says he kept track of                
          these transactions but a fire at his home on August 22, 2001,               
          destroyed the records.                                                      
               Petitioner claims that at the end of 2001 he tried to                  
          terminate his involvement in the scheme, but Ms. Morgan and her             
          husband told him that his family would be endangered by the other           
          individuals involved in the scheme.                                         
               In her testimony, Ms. Morgan denied that she was involved in           
          a kickback scheme with petitioner.  She stated that petitioner              
          was paid for services rendered on various projects for Golden               
          Leaf.  When petitioner completed a job, he would submit an                  
          invoice to Ms. Morgan.  Ms. Morgan would submit the invoice to              
          Mr. Yeh, president of Golden Leaf, and Mr. Yeh would write a                
          check to petitioner.                                                        
               Petitioners have not provided evidence sufficient to refute            
          respondent's determination.  The Court finds that petitioners               

Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011