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Steel projects, Phillips performed the work at the sites, and
petitioner, through T.J. Construction, primarily handled the
paperwork between Phillips and Thyssen Steel.
The Thyssen Steel projects involved numerous jobs for which
individual proposals were submitted by Phillips to petitioner,
who then forwarded the proposals to Thyssen Steel. Phillips
included a 20-percent profit margin in his proposal for each job,
and petitioner added a 10-percent administrative fee to the
figure proposed by Phillips before submitting the final proposal
to Al Paas (Paas), the project manager for Thyssen Steel, who
then submitted the proposals for final approval by Thyssen Steel
management. Petitioner typically requested payment from Paas for
work completed, and payments were received from Thyssen Steel in
checks made out to T.J. Construction. Petitioner then remitted
to Phillips whatever petitioner determined was owed to Phillips,
after deducting funds previously advanced to Phillips by
petitioner.
On several occasions, envelopes containing $5,000 in $100
bills were given by petitioner to Paas, petitioner’s contact for
payment from Thyssen Steel. Paas was instrumental in T.J.
Construction’s receiving a performance bonus nearly double that
which was required by the contract between Thyssen Steel and
T.J. Construction. Petitioner did not require that Paas use the
cash in a particular manner or keep receipts for the cash he
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Last modified: November 10, 2007