Michael R. Motsko, Petitioner, and Cheryl Manns, Intervenor - Page 5

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               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 prepare              






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