Linda K. Haltom - Page 15

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         expenses of $120,825.  However, we do not find this sufficient in            
         itself to find that Linda’s lack of suspicion became unreasonable            
         that year.  First, most of that spending was on home improvements            
         rather than deposits into their joint account, and as we already             
         noted Linda had no familiarity with how expensive they might be.             
         Looking at the numbers for each calendar year might also have                
         been misleading--especially in a business where legitimate bonus             
         income might be clustered at the beginning or end of a year, but             
         the spending that it fuels might occur in a different year.                  
              The last factor is whether Jerry was in any way evasive or              
         deceitful regarding the embezzled money.  Jerry credibly                     
         testified that he deliberately took actions to ensure that Linda             
         would not find out about his embezzlement or his failure to                  
         report it, because he viewed her as an honest woman who would                
         never sign a false tax return.  And when she collected from him              
         the W-2s and other documents that their accountant needed to                 
         complete their returns, he was careful to withhold any paperwork             
         that might cause her to question the numbers.                                
              Linda realized that Jerry was being less than trustworthy               
         when she learned in 1994 that investigators had raided his                   
         office.  But ever since, she has regularly checked up on him.                
         Jerry testified during trial:                                                
                   THE COURT:     Who in your family pays the monthly                 
              utility bills, the routine checks of that kind?                         
                   THE WITNESS:  My wife does.                                        





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