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names owned and used by Mr. Loeser (together with Bayliwix, Mr.
Loeser’s affiliates): Reeves Consulting, Zarzana Consulting, and
Marketplace on the Net.
The general ledger records numerous transactions between
Medico and Mr. Loeser or one of his affiliates during 2000. The
following check and account information appears with respect to
one such transaction, involving Bayliwix, Inc. A copy of the
face of Medico check No. 1221, dated July 14, 2000, payable to
Bayliwix, in the amount of $15,000, and signed by Mr. Oria, is
attached to the pages of the ledger for the quarter ending
September 30, 2000. Account No. 7011, Cost of Labor, records a
payment on July 14, 2000, by Medico check No. 1221, to Bayliwix,
in the amount of $90,000 ($75,000 greater than the amount shown
on the face of Medico check No. 1221). Account No. 1032, Mr.
Oria’s drawing account, is credited (reduced) on July 14, 2000,
in the amount of $75,000, on account of the payment by check No.
1221 to Bayliwix. At least one-half dozen more transactions
between Medico and Mr. Loeser or one of his affiliates during
2000 share the pattern of an expense being recorded in an amount
greater than the amount appearing on the associated Medico check,
with the difference being credited to Mr. Oria’s drawing account.
Mr. Oria did not make payments to Mr. Loeser or his
affiliates during 2000 corresponding to the amounts credited to
Mr. Oria’s drawing account during that year. Those credits,
however, reduced the yearend balance of Mr. Oria’s drawing
account, which reduced the amount Mr. Loeser calculated with
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Last modified: November 10, 2007