- 13 - resolution. In 2002, Ms. Mohr was awarded $159,575.82 by NASD, of which Mr. Wright was responsible for $123,342.14.16 Mr. Wright made what he characterized as a $50,000 accounting adjustment to reflect and create a reserve for Ms. Mohr’s NASD claim on Wright & Associates’ 1999 tax return. On the 1999 Form 1120S, $50,000 was included in the $53,485 return and allowance amount listed on line 1(b), which was subtracted from gross receipts or sales on line 1(a). As a result, Wright & Associates’ and ultimately petitioners’ taxable incomes were decreased by $50,000 for 1999. The accounting adjustment offsetting the debit entry to return and allowance was a credit to a shareholder loan payable account for Mr. Wright. 3. Offshore Credit Card Account Petitioners maintained an offshore credit card at Leadenhall in the name of Sarasota Investment Club #2 for all of the years in issue. On October 22, 1999, petitioners deposited six $9,000 checks, totaling $54,000, into their bank account at Leadenhall. One Leadenhall deposit check was dated October 4, 1999, two were dated October 5, 1999, and three were dated October 6, 1999. Petitioners used their credit card to make personal expenditures 15(...continued) participation in the class action lawsuits. 16Prim Securities settled with Ms. Mohr for $36,233.68, which was deducted from Ms. Mohr’s award of $159,575.82.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011