-6- shops by performing a variety of handyman services. LeBloch also advised Michelsen (initially in her capacity as a sole proprietor and later in her capacity as an officer and director of NT) on financial and legal matters related to the shops, as well as on items to purchase as inventory for the shops. LeBloch routinely paid expenses for the shops out of his personal finances, and he contemporaneously requested and obtained from the shops reimbursement for those payments through his submission to Michelsen of written reports that listed the specific expenses that he paid on behalf of the shops, accompanied by any related receipt. During the subject years, LeBloch did not receive any compensation for services that he performed for or on behalf of the shops. Each Nature’s Touch shop had a manager and three or four other year round employees.4 The general duties of the managers, with respect to the shops they managed, was to monitor the shop’s inventory and report to Michelsen the need or desire for any additional inventory; to oversee and schedule employees; to keep the shop clean and orderly; and to prepare the shop’s receipts for weekly deposit in the bank. Michelsen’s main role in the shops was to oversee the work of the managers by speaking to them telephonically, usually once a day while they were at the shops 4 The number of employees at each shop increased approximately threefold during the seasonal 2-month period beginning on November 1.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007