- 3 -
Petitioner was an attorney and was admitted to the practice
of law. During 1985, petitioner had a money market account at
Jacksonville Savings and Loan Association (money market account)
and a bank account at Atlantic National Bank of Florida (Atlantic
National account).
B. Petitioner’s Real Estate Activities
Petitioner was involved in several real estate development
projects in 1985 which we refer to as Southern Grove I, Southern
Grove II, Beach Harbor I, and River Creek. He financed those
projects with bank loans that he obtained in 1985 totaling
$822,500 for Southern Grove I, $525,000 for Southern Grove II,
$1,125,000 for Beach Harbor I, and $1,186,750 for River Creek.
Petitioner used shell corporations to buy land from third
parties and immediately resell the land at inflated prices to
limited partnerships that he controlled. He concealed from
lenders the fact that he controlled the shell corporations, that
he had purchased the land at prices substantially lower than the
inflated resale prices, and that the limited partnerships had not
made substantial downpayments.
Petitioner used part of the loan proceeds to buy property
from third party sellers and to pay other development costs. In
addition, petitioner’s attorney wrote checks paying part of the
loan proceeds to petitioner’s shell corporations. In 1985,
petitioner endorsed some of those checks and deposited the
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