Cynthia K. Beatty - Page 14




                                       - 14 -                                         
               Mrs. Beatty met her husband, Michael Beatty, in 1974 in                
               Cockeysville, Maryland, at a restaurant where Mr.                      
               Beatty was working as a manager.  In 1976, Mr. Beatty                  
               was transferred to Prince George’s County, Maryland,                   
               and purchased a house.  Shortly thereafter, Mrs. Beatty                
               moved in.  They married in 1978.  From the beginning of                
               their marriage, Mrs. Beatty had no involvement in the                  
               family finances.  She did not have or maintain checking                
               accounts in her name.  She did not discuss the family                  
               expenses with her husband; and was not involved in any                 
               financial decisions.  In 1977, prior to their marriage,                
               Mr. Beatty purchased a deli and bakery business, which                 
               he incorporated as “MKB Donut and Deli, Inc.”  He                      
               financed the business with an SBA loan.  As a result of                
               rapid growth and poor management, Mr. Beatty fell                      
               behind on his withholding tax obligations, and soon                    
               found himself facing federal tax liens and foreclo-                    
               sures.  Mr. Beatty’s business filed for bankruptcy                     
               protection in 1980.  He eventually lost everything.                    
               Having lost his business and all of his savings, Mr.                   
               Beatty was left looking for a way to support himself                   
               and his wife.  A friend that was opening a bar in Ocean                
               City, Maryland, offered to pay Mr. Beatty to help get                  
               the place in order in time for Memorial Day weekend                    
               (1981).  Mr. Beatty agreed and he and his wife rented a                
               room in Ocean City for $35 a night.  When Mr. Beatty                   
               arrived at the bar, he learned that the bar was not                    
               permitted to have live entertainment.  Mr. Beatty                      
               offered to provide deejay services during the busy                     
               holiday weekend.  His friend accepted, and what was                    
               intended to be a one-time “gig” turned into a new job                  
               that lasted the summer of 1981.  Mrs. Beatty helped in                 
               any way she could, from carrying equipment and pulling                 
               records, to doing her husband’s laundry and getting him                
               ready for each night.  This continued until September                  
               1981.  As a result of his summer engagement, Mr. Beatty                
               obtained jobs with various colleges in Maryland and                    
               Pennsylvania, as well as some bars and nightclubs in                   
               the Baltimore metropolitan area.  At this point, the                   
               bank had foreclosed on the house purchased by Mr.                      
               Beatty in 1976.  The Beatty’s packed up their belong-                  
               ings and moved into a smaller apartment in                             
               Cockeysville, Maryland.  Again, Mr. Beatty handled all                 
               the financial aspects of the relationship, including                   
               the apartment application process, paying the rent,                    
               paying household.                                                      







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