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payable to Flair Racing, at the direction of petitioner’s son,
Phillip, and were deposited monthly into Flair Racing’s bank
account. The B&H rebate checks are properly income to Flair
Enterprises, which was contractually entitled to the discount
rebates.
Petitioners allege that Mrs. Haney gave all cash received
from the cashed checks to Steelman, who allegedly kept it as a
large petty cash fund. Petitioners assert that new vendors
frequently would come by the Flair Body Works locations with very
expensive parts and needed to be paid immediately. Because
Steelman was not authorized to sign checks for Flair Enterprises,
she allegedly needed the large petty cash fund to make these
purchases. Petitioners rely on Steelman’s confessed embezzlement
activities to explain the missing cash from the cashed checks,
alleging that Steelman must have stolen the cash if it is
missing.
Petitioners’ testimony is implausible. Petitioners offered
no corroborating evidence that Steelman was engaged in buying
parts for the body shop business. Petitioners have not presented
any records of cash purchases allegedly made by Steelman or any
other cash expenditures by the company. Trent told the examining
agent that there was no petty cash fund, and Gina Haney testified
that none existed after Steelman was fired and that all cash from
checks cashed by Mrs. Haney after Steelman’s termination went to
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Last modified: November 10, 2007