Alex and Tonja Oria - Page 7

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          reference to that account as salary paid to Mr. Oria during 2000.           
               The Form W-2 Medico issued to Mr. Oria for 2000 reported               
          that Mr. Oria had received wage or salary income of $543,600 in             
          2000.  Mr. Oria reported that amount on the Form 1040.  Both the            
          Forms W-2 and 1040 understated Mr. Oria’s wage or salary income             
          from checks issued to him by Medico in the amount of $248,524.              
               Mr. Loeser met or spoke with Mr. Oria on numerous occasions            
          and attempted to explain Medico’s tax returns and general ledger            
          to him, but Mr. Oria was not interested in Mr. Loeser’s                     
          explanations, regarding them as “mumbo jumbo numbers”, and he               
          made little or no attempt to understand them.  In response to a             
          question from his attorney as to whether he questioned Mr.                  
          Loeser’s plan that Medico would pay Mr. Loeser money and it would           
          save Medico taxes, he answered:                                             
                    Well, no.  I believed him for several reasons.  My                
               best friend told me that it was working fine for him.                  
               * * * [Mr. Loeser is] an accountant; I’m not.  And,                    
               third, in all honesty, I thought it was a rite of * * *                
               [passage].  Here I am now making seven figures, and you                
               always hear guys that make that kind of money, you got                 
               all kinds of these loopholes that you can do.  So I                    
               said:  Sure, it makes sense to me; what have we got to                 
          His attorney then asked him:  “What did he tell you you had to              
          do?”  Mr. Oria answered:                                                    
                    Well, just like I said.  I mean, he would tell me                 
               I got to pay money to his entities, and we would sit                   
               down once a month, once a quarter –- I’m not sure –-                   
               and he would do this math.  Okay, Alex; you’ve already                 
               paid yourself 100 grand this month.  By paying –- your                 
               normal tax burden that would be 40 grand.  By paying                   
               Bayliwix or one of those entities that he has 20-, you                 
               just –- and then I would lose him there, and, you know,                
               it looked like I was saving money, because I was paying                

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Last modified: November 10, 2007