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Furthermore, Mrs. Haney testified extensively at trial about her
regular practice of cashing checks for Flair Enterprises,
asserting that she was the only person who handled cashing
company checks. Mrs. Haney testified that Steelman’s name was
not on the Flair Enterprises account, and thus Steelman could not
cash checks on the account, because petitioners were concerned
about the possibility of embezzlement in general. Mrs. Haney
claimed, however, that Steelman required that she cash the checks
and turn over the currency obtained from the bank back to
Steelman on every occasion. Her testimony is inconsistent,
implausible, and not credible.
Gina Haney, who was the sole accountant and bookkeeper for
Flair Enterprises after Steelman was fired in November 2000,
represented during the audit that Flair Body Works did not
receive any money from COPART and that there was no written
agreement between Flair Enterprises and B&H. The evidence
establishes that payments were received regularly from both
COPART and B&H and that the majority of those payments were
regularly converted to cash.
During the extensive criminal investigation of Steelman’s
embezzlement, no allegation was made by petitioners that Steelman
embezzled cash from Flair Enterprises. Trent, on behalf of
petitioners, represented during the audit that the company had no
petty cash fund. Petitioners did not mention the existence of a
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