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versus for promotion, versus for meals and entertainment, versus
for marketing, is left largely unilluminated. Additionally,
testimony regarding their preparation shows that the general
ledgers are largely noncontemporaneous attempts at reconstruction
of financial records without complete support in underlying
primary documentation. Mr. Hartmann stated at trial: “And when
Donald Leo was hired he looked at some of the tax returns that
had been filed and apparently there was no supporting books and
records that go with them. Mr. Leo was hired to create this
general ledger for the years ’95 ’96, ’97. I believe he also did
1998.” Mr. Goltz’s testimony in explaining his role after the
hiring of Mr. Leo offers further details, as follows:
A Actually what I was doing was most of my time
was spent working with the CPA, that’s Mr. Leo and his
staff, bringing the records up to snuff. Everything
was done manually before, okay. There was no computer
system in play and it was just an absolute disaster.
And I would get, I would haul boxes and boxes of
records and help with the inputting. I wasn’t doing it
but supplying information so that the records in
essence could be reconstructed because they were a
disaster.
Q Did you classify the data that was inputted
or did the person just utilize the face of the check?
A The accounting people were classifying it.
And if they had questions I’d do my best to answer them
or get the answer. Or if they needed invoices and they
didn’t have them I would do my best to, you know, get
them for them.
Q * * * What was the ultimate work product as a
result of CPA Don Leo’s efforts with your assistance?
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