Ellis E. Neder, Jr. - Page 3

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               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                  






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