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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
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Last modified: May 25, 2011