- 5 - In 1996, Motsko began having serious back pain, and so Evergreen’s truck and lowboy sat idle for weeks at a time. He decided to sell them because of their carrying cost, and he negotiated the selling price of $158,684. The truck and lowboy were completely depreciated, so nearly the entire sale proceeds would be taxable income, but Motsko and Manns did not set aside a reserve. One reason for their failure is that the sale proceeds might have been earmarked for settling a lawsuit brought against Motsko, for reasons unknown, by a man named Jerry Sadler. Motsko and Manns settled that suit in 1996 for $100,000, but whether the money came from a loan or from the cash realized by the lowboy sale is unclear. It is also possible that money from the sale went toward construction on the Hydraulics Center property. Then their troubles snowballed. In February 1997, Manns was indicted on 13 counts of making and subscribing false income tax returns for tax years 1985 and 1986, and 1988 through 1992. In May, she pleaded guilty to five of these counts, and promised to pay all back taxes, penalties, and interest. In September, she also filed a sentencing statement saying that she accepted full responsibility for her actions. Motsko was never at any time implicated in her crimes, but the criminal investigation did not cause them to change their usual distribution of responsibilities. And with the criminal case hanging over her, Manns had not taken the time to preparePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011