Lee F. Haney, Sr., and Jean C. Haney, a.k.a. Jeanie Haney - Page 34




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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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