Charles McHan and Martha McHan - Page 10

                                       - 10 -                                         
               Also, based in part on the statements made by petitioner to            
          Posey on the undercover tapes, respondent’s agent determined how            
          much petitioner received on the sales of marijuana purchased from           
          the Texas source.                                                           
               Respondent’s agent used information from his investigation             
          to reconstruct petitioner’s 1985, 1986, and 1987 income from                
          illegal drug transactions.  Respondent’s agent identified certain           
          specific marijuana transactions in which petitioner, Posey, and             
          Cunningham participated during 1985, 1986, and 1987.                        
               With respect to each such marijuana transaction,                       
          respondent’s agent determined the number of pounds of marijuana             
          purchased, petitioner’s cost for the marijuana, and the sales               
          proceeds and gross profit petitioner received.                              
               For example, respondent’s agent determined that petitioner             
          paid on average $275 per pound for the marijuana purchased from             
          the Texas source.  Also, to take into account amounts paid by               
          petitioner to the Colonel on the purchase of marijuana from the             
          Texas source, respondent’s agent added $20 per pound, allowing              
          petitioner a total cost of goods sold in the amount of $295 per             
          pound.  Where petitioner purchased marijuana from a different               
          source, respondent’s agent used a cost for the marijuana                    
          according to information provided by Posey and Cunningham.                  
               In calculating petitioner’s gross profits for 1986 and 1987            
          from illegal drug transactions in which petitioner participated,            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011